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154 054 I
II
ESSENTIALS OF
ORGANIZATIONAL
BEHAVIOR
Seventh Edition

Stephen P. Robbins
San Diego State University

Pt
*

rriMUice
Hall
Upper Saddle River. New Jersey 074S8
 r

I. ihrary <if PulJicjliun IJai

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This book is dedicated to my friends and colleagues in

The Organizational Behavior Teaching Society

who, through their teaching research and c&mmitment

to the learning process, have significantly improved

the ability of students to

understand and apply OB concepts.

Brief Contents
Preface n

Part I PROLOGUE 1
I. Introduction to Organizational Behavior 1

Part II THE INDIVIDUAL IN THE ORGANIZATION 14

Foundations of Individual Behavior 14

Personality' and Emotions 30

*

4. Basic Motivarinn Concepts 42

Modvarion: From Concepts to Applications JS

6. Individual Decision Making 69

Part III GROUPS IN THE ORGANIZATION 84

r**- 00 o*

Foundaoons of (Jroup Behavior 84

Understanding Work learns 100

Communication 115

10. Leadership and Creating Trust 130

IL Power and Politics 150

12. Condict and Neeonation 163

Part IV THE ORGANIZATION SYSTEM 178

13. Foundations of Or^tanization Structure 17 8
14. Technology and Work Design 196
15. Human Resource Policies and Practices 215
16. Organizadonal Culture 230
17. Oipmizatiunal (Change and Development 248
Contents
Pre^t'e xvij

Part I PROLOGUE 1

1. Introduction to Organizational Behavior 1

The Field of Organizational Behavior 2

Dejiuitfov 2

)*
*
Cmtributinv DwcwZiwey

Goals of Organizational Behavior 5

Explanation S’
Pfvdictioft >
Contrrt! S
Challenges and Opportunities for OB: A Managerial Perspective
tntpfwifig (^liatUy and Productivity 6
Intfncrcifig PeopZr Skills 7
.Wji waging Hbrjtftwxr Diversity 7
IQ Clobaliautiatf j
£y/ipoa’frrrtg People 9
StiMulatiug /iiwavtf/ion and Cban^ 9
Coping with '‘‘Tcmporaiiness^* 10
Helping Euiployees Balance Rbrk/Lifi Can/licts JO
Declining Employee l oyalty 12
Ifnprwing Ethical Behind or 13
The Plan of * This Bewk 12

Part II THE INDIVIDUAL IN THE ORGANIZATION 14

2. Foundations of Individual Behavior 14

Values 14

Types of I tf^rer I $

l fjiyatty, and Ethical Behmar 17

WM f7vJU*wn 17
CoMerrts
Atunides 19
19

'Redwing

Tb^ AttiuMBebavior U.
PcrcepQOn 23 . -la
Fzr4^rs/rryZwe»<^«’«
Attriblift on Theory 2i
Sbortath ^o yadgittg Otberr 23
Learning 26
Implicirions for Managers 21

Pereonality and Emotions 30

Personality 30
The iViyerfi-Briggx Type InJkator 3t
The Big-Five Model 31
Other Key Pemnality Attributes 32
Pcryotutfity tstid Nnifo/?/?/ Culrurt! 33
MitU'hing PerstirM lilies and Jobs 34
ErnoDons 36
HTrat Are 56
ItDisplayed Ef»<stwti$ 3T

The Six Universal Emotions 38

Gender a nd Emotions 3 8

Emotions and National Uulture 39

0B 39
for Managers 41

4. Basic Motivation Concepts 42

A^Tiat Is Motiv’ation? 45
Earl y Theori es of Mod vaiion 43
Hierarchy frf'Needs Theory 43
Theory X and Theory K 45
Tisj0‘Factor t heory 45
Contemporary The ori es of Modvadon 47
MfC/e/iiw/V Theory Needs 41
Goal-Setting Tbeoty 48
Reinforermem Theory 49
F^fuity Tbeoiy 50
Expeaancy ’Theory 52
IXw’t Forget: Moovadon Thtsoncs Arc Culture-Bound! 53
frepkeatfons for Xlanagers 54
 Contents

Motivation: From Concepts tn Apphcadon.s 55

Ml
*

jMa nagemcn l by ("Jhiec Oves 5 5

J inkhig XIRO anti Gt/al-Setting Tbcoiy 37

MBO if/ Pratdct 57
Behavior McMdificadon 5 H
iiljat h OS 5^
Li//i:it/g OS Mod /ttid Reinfomintut 60
OS Mi/d in Practice 60
En^loyec RecognicoD Programs 60
Wjb/7Z Are C-mpioyre Recognition Progratnd 60
Linking Recognition Programs and Rern/arctjaent
Theory 61
JE’wp/oj*ee /?e<w^?jr7/urt Programf in Pritctice 61
Einf^oyee Involvcm e n t Programs 61
WTwf/ If Empioyee lnvf>/vetn.enrl 61
fRampies of Ewpioyee Z«voZve*tte/tr Programs 62
Linking Emplfjyee Involvement Pr/tgra/nx anti Mativati/w
Theories 63
Employee Involvement Prograntv in Praeiice 6J
Variable-Pay Programs 64

HTwr.-fre Idrtable-Pay Progta/ns^ 64

Linking Variable-Pay Programs and Expectancy

Theory 63
^ d/^iahle^Pt^ ZVwgj'/wnr bi Practice 66
Slall-Based Pay Plans 66
11 kat ^4 FY 5jbfZZ-Raje<Z Pay PlartsI 66
Sjl/ZZ-fioxeiZ P<^ PZrfw tn Motivation
theories 67
Skill-Based Pay in Practice 67
Implicauons for Managers 6H

6. UKltvidiul Decision Making 69

How Should Decisions Be Made? 70
Tbe Ratinaaf DftifioN-.Makfng Prwcft ^0
Improving Creativity in Dtdtian Makhfg 71
HUM Deciskms .Actually Made in Oi^anizations 73
SosTMa^J 73
74
7$
p.
COMMIU
OneloptHK.iliemativtt 7-5
Mukif/g CfMiicts 76
Itiffn/duftf "77
Ov^auizationul Constrabits 80

da ftm ul

Echics in Decision Making 82

Lnp I icfl ri ons for xVlana gers 8 3

Fart GROUPS IN THE ORGANIZATION B4

Foundarions of Group Behavior 84

•s

f.
i

D e fi ning a n (1 Cl xssi lyin g Gruup'^ H4

Basic Group Concepts 85

Roles 83

S7
Cohesiveness 90
Sfze 90
CofnlMsition 92
uS'mmr 93
Group Decision Making 94
The Individuiti I 'ersiis the Qrryup 94
Groupthink and Grouffsbifi 95
Selecting the Best Gre^up Dceision-Makuig Tecbniqtie 97
Implications for Managers 98

8, Understanding Work Teams 100

Why Have Teams Become So Fc^lar? 101
Teams Versus Groups: VVTiafs ±c Difference? 10 f
lypes of Teams i 02
Problem-Solving Teasns 102
Self-Managed iUrk Teams 103
Cross-Fafit'tional lemts 104
nrtual Teams 104
Creating Effeedve'(^ms 105
iVork Design i03
Cosnposil/on 106
Conrm /08
/’nwfw 109
Turning Individuak into Team PJayere 110
77>r CIMHenge fiO
Shaping Team Players 111
ImpUcatioos for Managers 112
 Contents

(>>mnwnicarion 113
9.
Funcnonx of <'ommunication 114
I'he (3oininunication Process 114
Piremon of Communicahon
/^wmi'ord
L’/fwani
LftMa/ 126
Interpersonal Communicadon 116
f3ral Cow wunieation 116
I Written Conrmunication /I7
.VtftfivxAtf/ Cow w ATtff ftfritf n 127
Chganizddonal Connniinicadon 119
Forwa/ S/»ali- Gro up Networks 119
The Grapet^ine 229
CoMpuier-4ideJ CowsnuHUMtion 222
Barriers to Effective Connnunicaiiun 123
k
f///err123

Selective PtTcrpr/ow 123

I 2nfortnation Cherioad 123

Gma^ Stylef 22}

Emotions 124

Language 224

Cro55-Cul rural Communicadon 124

Or//urai Context 22}

. I O///wrtf/ Guide 126

Krhio; in CorntnunicadoA: k h Wrong u> 'lUl a Lie? 126

Ini p be a dons for .Managers 126

10. Leadership and Creating Trust 130

HTiat Is I -eadership? 1 JO

Trail 'rheories IJ1

Behavioral Theories 131

Ohio State Stvdieif 122

I'nhet xity ofS Studiee 2 }3
The Managerial Grid 2)3
Sunttnary af Bel>aviaral Tl^eanta 133
(xiodngmc)* theories 134

,> 21>e Hedier Model 235

it 7lr»ay /J7
|r Tlkwr H'!

K iMdar-Paniei^tion Model 119

Contents

A..
„„,! Fr,«zr/r. iyifft.-^>>>iyi I i9

Th.rr Theories Updated; Charismatic Leadership

\1sivnary Leadership 142

Team Leadership 142

Is Leadership Always Relevant? 143

Trust and Lcadcrslup 144

J I’h/it fx Trust ? 44
Tmsl a nd l^/tdership 146
Tln‘u Typcx QfTt'uxt 146
tiow Do LfW BuM Trustf" 147
linphcations for Managers 148

11. Power and Politics 150

A Definition of Power 150

Contrasting Leadership and Power 151

Bases of Power 152

Cor/rh’C Pf»wer lf2

Rrwurd Power ! 55

Leptimute Power 15$

I'^perrPower J5J

Referent Power 153

Dependency: The Key to Power 154

TAr Genera/ DepenJenty Poxtnlate 154

fnat Creates Dependetfcy? F 54

P(>wer in Groups: Coalitions 155

Power and Sexual Harassment 156

Politics: Power in Andon 157

A De/?«j7fort of Political Behat ittr 157

The hnportaace of a Political Perspective 15S

/'fff/orr Contributing to Political Behavior 15S
Itnpre/xion Management 160
The Ethics of Behaving Politically 161
Implications for Managers 162

12. Conflict and Negotiation 163

A Definition of Confltcr 163

Transitions in <k>nflict Thought 164

1 be Traditional) ’/rtr ) 64

The Hutnan Retittions Mew 165

The IntcTMiontit Flrti’ /65

 contents
niffercnuaang Functional frrwn Dysfunctkindl Ckinflicts 165
rhe < xmOki Pn^e*^ 166
S7rtX<* Potent/af Oppvsrtio/f 166
Sfuge Ih ('of^g/tinn {1701 Penwfaliztitrofi
Sfagt /11: B^baviw" t6X
/I ? l/ttteomes J 69

(tiing Stratcgfcf 171

Issftff in N'egvtifltion 17/
Im pl ications for Managers 176

Part IV THE ORGANIZATION SYSTEM 178

13. Foundations of Organization Structure 178

What Is Organizanon Structure? 178

5/>efZ4ZZt4jrion 179
Departni mtaii z^fic n 181
Chain of Caffttnn nd 182
Span 0f Ccitnvi 18/
Centralizalion and Decentraiisatitw 184
Farma/izatron 184
Common Organizatimul Designs 185
TAr Simp/e Structure 18S

The Bureauciaiy 2^6

Tfre AfoMv Structure J 87

New Options 188

The Team Structure 188

'/ 'be I'lrtual O/^z/isutiow 189

The Boundaryltfs Or^n/zatioft 290

Why Do Structures Diflfer? 191

Strategy 192

Ofganization Size 192

lecbnalogy 192
Environmental Uncertainty 19/
Oi^aniaatioQ Srniecurc and Employee Behavior 193
Imp]icahi>n.s for Managers 195

Technology and Work Design 196

Technolog)’ in the W'brkplace 196
f ff/trmfiOMi Imprvtentent /bwwrer 297
/Vwm Krewjip»rerfi»g 198
Maa Cttfromiwr/M 199
 Organiratirmal Behavior in an E-WorW 200
r{ V nn EAhganisaHanl 200
Seleited Impluations jar Individual bebnxior 201
Seketed ImpUattiims for Group behavior 203
iVill E-Or^s Kedefine Interpersonal Relationsbipsl 20J
Work Design 206
task Churucteristic Tbeurics 206
Khnt Rcdcsigyi 209
Popular ftbrk Sebeduie OptfOfts 211
Implications for Managers 213

Human Resource Policies and Practices 21$

Employee Sd ctuon 216

216
tlnrten 2)

d
-
0 rfnance-Sbnniatian Tenfi 211

Training Programs 218

ryfk*s 0f Tmitiing 2lX

Training Xlef/Mcls 220

Performance Appraisal 220

Pn/ti ff. Ipprnist/l and MetwatiM 221

Wbaf Du H? Evahiffte? 221

Sbou/d Do the Evafuarin^? 222

Perfornmnee Appraisa/Mcibodr 223

/or Iftrfn’ovrng Pr^yonwrtce Appraisab 22S
Don'f Eorgef Performance Feedback! 226
About leant Per/wnann Appraisabi' 227
rnyuz7«///rr e Appraisal in a Global Context 223
Implications for Managers 228

Organizational (Culture 230

Defining O^aniutinnat Culture 2 J1

Is a Desaipme Term 231

Do Or^nnizations Haue Cnifmn (^dotres! 231
Strong J CW/wrer 2^ ?
Whai r>oes Culnire Do? 2J J

C/r//wrr’f Innaions 23}

Ciilliitv .3^ a Liability 234

Creating and Sustaining Culture 234

How a Culture ffeffim 234

•• (-"inut Alive 233

^mututy; Huw Cuhtuyt t-urwt 23X

/! Gmtents

fjyw Employees Leam Culture 239

5/ww 239
Rintab 240
iVI/rtfriaJ Symbob 240
241
M^aging Cultuial Change 241
Creating an Ethical Organiiational Culture 242
Spiriniaiity and Organizational Culture 243
H 'br/t h SpbitJtality? 243
H'hy Spn-itr/aiify 24 ?
C'frtftwte'nAtZfj Qf n Spbituai Organi&abfftt 244
(Jritieimf af^phitnahty 24 f
Organ iiad on a i Culni re vc rs U5 Na ti onal Culture 246
Organizational Culture and the Paradox of Diversity 246
Implications for Managers 247

17. Organizational Change and Development 248

Forces lor (Change 248
Managing Planned Change 250
Two V^ews of Change 251
The •‘f’.kZ/M Simik 2SI
The '^U’bfte- Il<r/rr Simi/e 2 32
Putting the Tko I reur in Penperrtve 2^2
Resistance to Change 2 53
Re.ort/twrf 255
Ch ganiza tutnitl R rnjfante 2 f4
CHrtfow/wg Pe!fi.rtanee ro CA/T»ge 255
Managing Change Through Organizational Development 257
5‘ear/fjrn^ 7i'zrf/tr>tg 231
Snrcey Feedback 25S
Prwrxr Canxtdtntion 25^
Teayn Buikting 239
infergrvitp Devefapment 260
Contemporaiy Issues tn Otganizadrinal Change 260
Hbrk .y^resf 26)
S'tvMir/tf/rAg fonoiwWoj? 262
Knawtedge MafMgewfKt 263
hnplkations for Managers 264

Epdoguc 266
EB^UMA 267
rTn^u (Indea/CiliMery) 285
 Preface
Ihis h<x>k w as created as an altemaiive to the 600- or ?00-page comprehensive text-
IwKik id urganizjnunal bcharior (OB). It attempt* to prwrie balanced coverage <if all
the key dements comprising the discipline of OB, in a style diat readers will find both
infonnarive and interesnng. Tm pleased to say that this text hm achieved a wide fid-
lowing in shrirf LXIUCSCS and executive programs and in uaditional courses as a com-
panion volume w-ith cxpcriciiiial. skill development, case, and readings books, h is
currently used at more than 400 colleges and universities in the Uni led States,
Canada. Lann America, Europe. Aasmlia, and Asia. Ifs also been translated into
Bahasa Indonesian, Chinese, Dutch. JajiHiwse. Polish, and Spanish.

RETAINED FROM niE PREVIOUS EDI TION

WTiat do people like about this book? Surveys of users have found general agreement
about rhe fcdlowing features. Needles:* to say, they vc all been retained in this edition.

Lewgn^. Since in inception in 1984, I've tried diUgeiidy to keep this hook to
approximately 300 pages. Users tell me this length altws them co n*;] de raid

J
k
flexibility in assigning supporting inatenak and projects.

■ naianced ropk enrrag^. .Although short in length, diis hook continues to provide
lialanccd ccnemge of all the key’ concepts in OB. This includes not only tradi-
tional topics such as personality', niotivadon. and leadership; but also
curang-edge issues such as emotions, mist, work-life habnee, workplace spiri-
tuality'. know ledge management, and e -organizations.

This book is trequcurly singled nut fijr the fluid writing style and
extensive use <4’ examples. Users regularly tell me that they* find this book “a in ver-
sarional." 'iincrtsring." ''snidenc-fricndhC and 'S'crv clear and uiulcrstandahle.'’

■ rraouaim. This book has never been solely about theorv. It’s about the-
r ••
ory to better explain and predict the behavior of people in oiganixauons. In
each edition of this book, I have fixnised on making sure that readers sec the
link between OB theories, research, and implications f<»r practice.
.'(Asfaa of Part of the rAr*ason I’ve been able to keep this book shon
B

kngth is that it doesn't include review quesuons, caM?s. exercises, or similar

tcaching/lcaming aids. 'i*his book continues to provide only the Itasac core of
OB knowled^. allowing instructors the manmufn flexibility in design inff and
shaping their cuunc.

^ ghihc^rstfrrott, dftmriy, As shown in Exhibit .A, die topics

of gtobabzabon and cnis-cahural differences, divenity, and ethics are disciRaed
dtfuochouc thu biKiL Rather than presented in sund-akxie cbapcers» thoe
nvW Preface
EaMbft A Integrative Topics (with specific page references)
Diversity
dobalkalion and Cross-Cultural PIfferenew
CMpler
5, 11-12
3. 7-8,10-11
4. 8-9
16-17, 28
17-19
CM m <

C
38

J
33-34. 39

53-54
62
61,62-63
in lA

79-80, 82
76
81
92
92, 98-99
107
110, 111
123-24 126
118, 124-26
139-41 145
10 161-62
156-57
11

12 169. 175-76

13
198 203
14
219 219-20
15 216, 228
246-47 242-43
246
16
249 262
17 249, 250,263

topics have been w oven into the context of relevant issues. Users tell me they
find this intcgraUve approach makes these topics more hiUy part of OB and
reiiitbrccs ihvir iniportanvc.

■ WTiilc rhis book may be short in length, it’s not

shon on ‘iiipplemcnis. It wmcs with a complete, high-lech support package for
bi>di faculn’ and i»tudencs. This includes a comprehensive instructor^ manual
and Test Item Pile; a dedicated Web site (www.prenhall.coiu/mbbins); an
Iiwtrucror's Resource CD'ROM. including die compiiterirxd lest Item File,
instructor’s manual, and PowerPoint siuks; and rhe Robbins SchkAsscssment
Library, whidi provides students with insights into ibcir skills, abilities, and
mterese. These suppleraenis are described in detail later in this Preface.

NEW TO THE SEVENTH EDITION

•n».s seventh ediu«3ii ha.s been updated in tcraw of research, examples, and topic cov-
erage. For instance, you’ll find new inarerial in rftis edioun on-

Oiyanizanunal ohzensliip behavior (Chapters 1 and2>

Work-life lulancc (Chapter 1)
 Frtface

• Ajnabiie's model ofrreaUviti in decision making (Chapter 6)

Group demography (Chapter 7)

leam-cftecuvencss model (Chapter 8>

Low- and high-context cultures (Chapter 9)

Leader-member exchange theory (Chapter 10)

OB and the e-organization (Chapter 14)

Mass ctistomization (C.hapter 14)

Flextime and telecommuting (Chapter 14)

Employee selection and training (Chapter IS)

Workplace spirinialiiy (Chapter 16)

Knowledge management (Chapter 17)

SLTPLEMEXTS PACKXGE

cf Organizatiffnat Bt^h/triar continues to be supported with an exwisive sup-

pleinenx package for Iwith students and facuic)'.

For tb^ Student

■ The updated and revised Robbins ScIf-AssesOTent Library is avaikhle with

this text as a no-cost option. IT contains 50 exercises that provide insights into
your skills, abilities, and interests. Illis is available in both print and CD-ROM
formats as well as online.
■ Companion Wtb site—The Companion Web site 'nrjfTS.prtnhallxam/robbms i.s
the industT)' standard for companion Web sices. Designed by professors for
professors and their students, it provides a customized course W’eb site, indtid-
ing new- conununication ttxils, one-click navigation of chapter content, and
other valuable resources.

For the Pnfesstrr

■ Instnictor’i Manual with lest Item File—The instructor’s manual portion

includes learning obfeenres, chapter outlines, chapter summanes, discussion
que^itions. and skill exercises; the Test Item File provides truc/falsc, muiuple-
cbcHce. and essay questions.
• <>>mpani<>n Web site—The Companion site provides professors with
bimunthly news articles integrated into the text with accompanying disi-ujision
qucsiions and group exercises, oobne deliver)- of PowerPoint slides and
mstructorV material, and sample 5)41 abi and teaching suggestions posted on a
conununit)- chat nxwn.
O insouctur's CD-ROM—'Fhe Instructors Resource CD-ROM con-
tBiBs the computerized Test Item File, PowerP<iint Elecuonic Tran5|iarciKies,
<hc iflstrucb>r's nanual. A re\’iscd. eiwnprehcnsive package of text outlines

A
Preface
. PowerPoint Fkctronic Tranx^
and figures corresponding in the text, th in-class letturcA
p«n,nc-ies are designed to aid the pjle. Test Manager » a
Cnntainmgall ol the que^uons -Us- M=‘n»g‘-T
comprehenMve su.re «.f nols ^^cir c<n.r«s. cither print-
ing and disinbunng through traditional methods or by an on inc tvcry via

Local Area Network (l>AN) servers.

\1dc<»^important topics in organizational behavior afc illustrated in the

accompanvin? videos Real conip-auics are used to Inflight organizational

avior pravriccs diat work!

ACKNOWI EDGAIENI S

A number of people pbyed critical roles in helping Co produce this revision. Special
thanks are extended to the following reviewers for their helpful comments and sug-
gestions: Professor Claudia Harris, North Carolina Central Universit}*; Dr. David A.
Foote, Middle Tennessee State University; Jeffrey J. Sheruood, Washington State
University: Dr. Jenna Lundberg, Ithaca College; Dr. Carol f. Young. Wittenberg
University; Dr. zXngeline W. .McArthur, Vnivcrsiw ofWsconsin-Parkside.
At Prcnticc-Hall, I want to thank David Shafer. Jennifer Glennon, Melanie
Olsen, Kim Marsden. Shannon .Moore. Judy Leale, Keri Jean, and Janet Slowhk for
overseeing rhe production and marketing of this book. And, finally, I want to ihank
my wife, Laura, for her love and stif^ort

STEPHEN P. RORRISS

A
PART i: Prologue

CHAPTER I ________________________________

Introduction to
Organizational
Behavior
After reading this chapter, you should be able to

1. Define organizational behavior (OB)

2. Identify the primary behavioral disciplines contributing to OB

3. Describe tfie three goals of OB

4. List the major challenges and opportunities for managers to use OB concepts

5. Discuss why workforce diversity has became an importanl Issue in management

6. Explain how managers and organizations are responding to the problem of employee
ethical dilemmas

7. Discuss how a knowledge of 03 can help managers stimulate organizational innovation

and change

hen I ask managers rn describe rheir most frequent ur troublesome problems,

W
describe
rhe answers I ger rend to exhibir a common thenw. The managers TTK«T often
peofi/e problems. 'Phey lalk about their bosses' poor rommumcadun sUIU,
employees' lack of moGvanon, conflicts between team members, overcoming
employee reswtance to a cnnipany reorganizanon. and similar concerns.
Because a managers job is inherently one of working with and through other
people—lios&es. peers, and employees—good “people skills” are a valuable, even nec-
eamy; a»wt m solving these problems. ’ I’bis hook has been wrincn to help managers,
Ik and ptxmoal managers, develop these people skills.
 THE FIELD OF ORGANlZATIONzXL BEHAVIOR
iTie shidv of’|>enptt' at work is gtncrally referred to as the study of or^nizatinnat
behavior. Let’s begin, then, by defining the term Mz/vmr and briefly
reviewing its origins.

Definition

OfganiMcional behavior (OB) is the systematic study of the actions and attitudes
that people exhibit within organizations. L«t\ liwk ai die key parts of this defitiinon.
Each <jf us regularly uses inrinnon. or our “gut feelings." in trying ro explain
phenomena. For instance, a friend catches a cold and we’re quick to remind him that
he “didn’t take his vi tain ins/* “doesn’t dress properly,” or that “it happens every' year
when the seasons cLingc." W’eVe not really sure why he caught cold, bur that doesn’t
stop us from offering our unuiuve malysis. The licid ol’OB seeks to replace intuitive
eyplanadons with systematic study: that is, the use of scientific evidence gathered
under controlled conrfilion.s and measured and interpreted in a reasonably rigorous
manner to attribute cause and effect. 'I‘he objective, of course, is co draw accurate con-
clusions- So die field of OB—its theories and conclusions—is based on a large number
of systeinaticaliv designed research studies.
What does OB systematically study? Actions (or behaviors) and attitudes! But
not /ill actions and atritudes. Three types of behavior have historically proved to be
important determinanTs of employee performance: pndui'tnuty, nhenieehw, and
turnover. The importance of productiriry i.<: ohvious. Managers clearly are concerned
with die quantity- and quality of output that each employee generates. But absence and
turnover—particularly excessively^ high rates—can adversely affect this output. Tn
terms oi absence, itk hard for an employee to be productive if lie or she isn’t at work.
In addition, high rates of employee turnover increase costs and tend co place less expe-
rienced people in jobs.
More recently, a fourth type of behavior—rif/zr?«A;p—has
found hj be imponain in determining employee performance. Organizational citi-
zenship is discredonaty behavior th ar is not pan of an employee’s formal job require-
ments butthat nevertheless promotes the effective fiincrioning of the organixatim.
Examples of good employee citizenship behavior include helping others on one’s work
team, volunteering for extra job activities, avoiding unnecessary’ conflicts, and making
constructive statements aNjut one’s work group and the overall organization.
Organizational behavior is also concerned with employee job xrhich is
an attitude. Managers :^hfnild he concerned with their employees’ job .VAtisfaction for
three reasons. First, there may Tie a link lierween satisfaction and productivity. Second,
satisfaction appears to lie negatively related to absenteeism and nimover. Finally, it
managers have a humjinistjc rciponsibility to provide their employ-
ees with jobs chat are challenging. inTrinsically rewarding, and satisfying.
The last part of our definition of OB that needs elaboration is the term
Psy chology’ and sociology arc wclt-knoun disciplines that study liehanor,
ut they do not concentrate solely on work-related issues, in contrast. OB is spevifi-
y ccmcemed with work*-re fated behavior-—and that takes place in urganizations. An
^■^•wzatKMi is a consciously coordinated social unit, composed of two or mivc peo-
* relatively conunucHK basis to achieve a aiinnion gxMl or set of
s. r s eharactetized by fi>nnal rol«» diar define and shape the liehavior of its menw
 Chapter 1 IntrotkM'rinn xo Organizational Behavior

w
ben. So OB t n«»m passes thv hciwvinr of people in such diverse organizations as man

IQ
nbeiuring and sen’ite finits; sehoeds; hospjuils; churches; militaiv uinw; chantabl
orgamzjnnns; locdli suic. And fcdc’ral govcmn*i€iH ui^cncie*

Contributing Discipline's

Orginizarionjil behavior is applied behavioral science and, as a result, is built qon

contrihuQuns from several behavioral disciplines. The predominant areas are psycho)-
sociolng\\ social psychology, anthropology, and political science. As you’ll learn,
ps>’chob»g>'*s a mtn Ini hot IS have been mainly at the individual nr micro level of analy-
sis whereas the latter disciplines have contributed to our unde J's landing of macro con-
cepts—group processes and organization. Exhibit 1-1 provides an overview of the
contributions made toward a distinct field of smdy: orgaiiuaUoiul Iwhavior.
PsychoJogv Psychology is the science iliat seeks to measure, explain, and some-
times change the behavior of humans and other animals. Psychologisls concern them-
selves with studying anti atrempring to understand hidivithial behavior. I'hosc who
have contributed and continue to add to the knowledge of OB are learning theorists^
fienonalit)' tlieoriscs, counseling iwy chologists, and, most important, industrial and
oi^nizational psj'chologists.
Early industrial psychologists instance, concerned themselves with prob-
Ictns <if frtigue, iKjredoin. and any other factor relevant to M'orking condirions that
could impede efficient work perfrirmancc. /More recently, their contributions have
been expanded to include learning, perception, personality; workforce diversity, emo-
doos, trail)mg. leadership effectiveness, needs and modvational forces, job sadsftc-
tinn, decision-making processes, perforrnance appraisals, attitude nicasurcmcjit,
cmployee-seleeriun techniques, job design, and work stress.

Socio Jog)* Whereas psychologists focus on the individual, sociologists study the
social sv'stcni in which individuals fill their roles; that is, sociology studies people in
relation to their fellow human beings. Sociologisus have made their greatest comribn-
tioD to OB through their srudv of group behatnnr in organizations, {wr lieu lady formal
and complex organizations. Areas within OB that have received valuable input from
stKiologists include group dtnamics, design of work teams, organizational culture,
formal organization theory and structure, bureaucracy; communications, status,
power, conflict, and work/life balance.

Social Ps)ch<jlogv Social psycholog)' is an area within pstxhology, blending con-

txpes from psychology and scxholog); It focuses on the influence of jieople on one
another. One of the major areas receiving considerable investigarion hy Micial psy-
chologists has !>een dyaugr—how to implement it and how to reduce barriers to its
acceptance. In addinon, social psychologists have made significant contributions in
measuring, understanding, and changing.ittitudes, communicadon patterns, the ways
in which group aedvides can sadsfo individual needs, and group decision-making
ptneesm.

Aadwopulogy Anthropology' is the study of socieaes co lea m about human beings

and char acovihe^. h includes their physical character, evuludonar)* history, geographic
dtttrihucKin, gnxip rcladvtLvhipH, and cultural hisian* and practices. I’he work of
whrnpologists on cultures and envinwunenC^ fir insunce, has helped us undentaod
.■H 16

ftu.
Peril Pnilogve
Toward an OB Discipline
EXHIBIT 1-1

Contribution Unit of analysis Output

Behavioral science
Learning
Motivation
Personality
Emotfons
Training r
Individual decision maktng
Leadership effecthrwiess
job satisfaction Indtvidutl
Perfbrmarce appraisal
Attitude measurement
Job design
Work stress

Group dynamics
Work teams
Communication
Status
Power
Conflict Study of
Orgamzabona!
Formal organization theory Behavior
OrganizacionaJ technology
Organizational change
Organizational culture

Behavioral change
Attitude change
----- a Communication
Group decision making
Group processes

Comparacive values
Comparative atirtudes
Organizatio
n
^Awhroptdoiy Cross-cultural analy»s
system

Organizational culture
Organizational environment

-------------------- - -------------
Conflict
kitraorgamzational pofltics
V Power

differences in fundamental values, attitudes, and behavior between people in differait

countries and within organizations. Much of our current understanding of organiza-
iHwal culture, oi^anizarional environments, and differences between national culwes
u the result of the work of anthropologists or those using their methocU.
Pobrinl Science Although frequentl) overlooked, die vuntribuuons of pulitml
soentHU arc ngnificani i<» the uiulerManding of behavior in upganujibore.. PvlitiMl
 Chapter t lniTixJacd<m u> Or^ntMttonal Pthjrhjt

science i* the sciuiv of the behavior of in<hviiluals and groups wkhin a political envi-
nmincni. Spccitu’ropivs ol concern ro polirical scientisrs include structuring nf
ixmllict, jlluc-atinH of pjwcr, and ht>w people maiiipulau power for individual) self-
interest,

COALS Ol- ORGANIZATIONAL BEHAVIOR

WTrn dues OB seek to do? We know it’s concenied with developing people skills, but
Mdwt predscl) arc its goals? The goals ol t)B arc to help you to explain, fnrdicty and
human liehavior.

Explanation

When we seek answers to why an individual or a group of individuals did somednng,

we are pursuing die explanation objective. It 5 probably the least important of the
three goals, from a management perspective, because it occurs after die fact. Yet, if we
are to understand a phenomenon, wc must I>egin by trying to explain it. We can then
use this understanding to determine a muse. For example, if a number of valued
enipknres resign, we undoubtedly want to know w hy. in order to determine if it was
something that could have been prevented. Obviousiv, employees quit their jobs for
many reasons, but if the explanation for a high quit-rate is inadequate pay or boring
jobs, managers often can take actions that will correct this situadun in the future.

Prediction

The goal of prediction focuses on future events. It seeks to determine what outcomes
will result from a given action. A manager of a small factory who attempts to assess
how employees will respond to the installanrm of new rolHidc equipment is engaging
in a predk'Qvc exercise. On the basis of a knowledge of OB, the manager can predict
certain behavioral resjxjnscs to the change. Of couro, there arc various ways to imple-
ment a raakir change, so the manager is likely to assess employee responses to several
change inicrwnrions. In this way, the manager can anticipate which approaches will
generate the least degree of cinplovee resistance and use that information in mahng
his or her decision.

Control

■nw nMM>t conuovcRijI gwl „ using OB knowledge to control bchuvior. When a

ran I do to make Dave i>ur out more eflbn on his
>ubr that manager is ecwtxmcd w ith cvnirol.
is conirol eonuxn'ersial? Most of us Jive in democratic societies, which are
upon the concept of personal freedom. Therefore, the idea that one person
J uthers to behave in a certain way, w hen the subject?* of that evn-
, unaware that their beha>ior is fteinft manipulated, has been viewed in
A7* J J* wn*?dikal and repugnant. Thar OB offers technologies that hiciJjate
p<x>pJc IS a facx Uliether those technologies should be used in ui^ani-
an ethkal question. >hu should he auw howvser, that the axttnd
n frcyiendy icen h> inanagm a.> rhe mcm valuable contribution chat OB
toward theif efl^tivvness on the job.
fUrt I Prdngue
CI-IAIXKNGES AND OPPORTUNITIES FOR OB:
A MANAGERIAL PERSPECTIVE

Tile abilin' to expbin. predict, .nd control orguni^^tion.l bchav.o. Ins never been
ni^e ir^^portant tS manager,. A quick look at a few of the draniaac changes now tak-
ing place in organizations supports this claim. For instance, the typical employee is
getting older; ^ere are more and more women and minorities u. die workplace;
global competition is requiring employees to become more flexible and to i«n, tc,
cope with rapid change and innovation, an.l the bonds of loyalty that histoncally held
many cnipJovee^? to their employers are being severed,
' In short there arc a lot of challenges and oppommicies today for managers to
use OB eontepu. in this section, we ll rcvww some of the most critical issues con-
fronting managers for which OB offers solutions—or ar least some meaningful
insights toward solutions.

Improving Quality and Productivity

Peter Wood manages in a verj’ coinpetitivc business. He’s manufacturing-systems

manager at rhe Oak Creek, Wisconsin, plant for Delphi Automotive Syljtcinb. The
plant makes catalytic converters for more than 40 automobile manufacturers. In 1997
Wood recognized that customers increasingly wanted customized products and tlicy
weren’t M’illing to wait S weeks for delivery. So Wocxl led a complete overhaul of the
Oak Creek plant.' Assembly lines were replaced svith team work cells, cjnployccs were
given total resjmnsibility for quality, and hundreds of wasteful processes were cut from
the production systein. The overhaul worked. Within 2 years, productivity at Oak
Creek has increased by more than 25 percent, quality has improved, and delivery time
has been cut to 4 days.
More and more managers are confronting the challenges that Peter Wood is fac-
ing. They are having to improve their nrgani 743 ri on's productivity^ and the quality of
die prtxiucTs and sennees they offer. 'I'o impnivc quality and pnxluctivity, they arc
implementing programs such as quality* management and process reengineering—
programs that require extensive employee involvement.
.\s Exhibit 1-2 describes, quality management is driven by the constant attain-
ment of customer satisfaction through the continuous iinprovcmeni of all organiza-
tional processes.’ It has implications for OB because it requires einplovees co rethink
what the)* do and become more involved in workplace decisions.
In times of rapid and dramatic change, it’s sometimes necessaiy to approach
improving quality and productivity- from the perspective of “How would we do
things around here if we w ere starting from scratch?" That, in essence, is the
approach of process reengineering. It asks managers to reconsider how work
would be done and their <irganization structured if they were starring over* I’hc
actions chat Peter \\ood took at Delphi's Oak Orcck plant illustrates process reengi-
neenng. Instead of merely making incremental changes in the basic production
processes, Wootl reinvented the plant’s whole production svstem. Every process was
^aluated in rernn of ia contribution to the plant’s pak Ineffiaeni processes were
ou(. Entire new sptems were lotruduccd. .And most emplovees fr>und them-
undergoing training to do enrirch new jobs. Rather than tn t/j make snull
unpnrvnneois in a sysicni that was uxi rigid and inflexible tn meet changing <i».
 Chapter 1 Introduction lo Orgunimitml Bctorior

CXMIVT1-2 What U Quahly Management?

I firmer•>!> fM«*iiwrr, The customer irthdcs nor only oumiderr who buy the
* <»njaniz-«6<»n\ prrducw w M‘mc<?» but intcrn.il u-vsloniers (such as sKippin| nr
account payable persoiuid} who intenaci with aiul su-nr ochent in the organizanon.
2. Quahty in.iiugvinert is a commimient to ne^-erbe
* a6s6etL •‘Vxiy gu'fcl'’not gnwl enough. Quality can always he improved.
J. /w^»vrr«r>'' th qiMhr^ffy'W'ibin^ the nr^anizarhn fA?w. Tlie tet in applies
noconk ir> (be hnal produce but also to how the organization handles deliveries
how rapidh it rr-HponJ> ui n»fnphHnls, how pnliitly ibv phono are aiisweretk and

(he like.
4, .-frewntf.' jwr^wwrrwrw/. Quality minagerocnx uses natisncal tcchinques to measure
even mttral pcrtoniiancc vuriabk in the organizmiuns Operations '11)6^6 perfor-
mance VAriAbks arc then cum pared npinsi stand an Is or h»cnch marks to identity pivjh-
iems. the probktns arc traced to their roots, and rhe causes are eliminated.
i. Empi^'d-erynnu ufftfiiJarfts. Quality* ntanagement invokrs the people on the line in the
improv*eTnent process. Teams arc widely used as coipowement vehicles Cor finding
and sokuig problems.

tamer needs, Wood completely rc^anqK'd his plant's production mtem and die |ab>
of individual employees. For instance. Oak Creek einployecs now check for quality,
help cshibtish productivity standards, and actively participate in inmjducing work-
flow innovations.
Today’’s ruanagei^ understand that the succcs.s of any effort at improving qualiU'
and producdniy mu^r include their employees. Tlxae employees will not <^y be a
nupM force in carrying our changes hut increasinglv will actively participate in pbn-
ning those changes. OB offers important insights into helping managers work
thmugh these changes.

Improving People Skills

Ue this chapter by demonstrating how impiirtant people skills .»rc to manage-

na cffertjveness. We said that “this lx>ok has lx*en written to help managers, and
potential managers, develop these people skUk;’
yxiu proceed through this textiMxvk. we”!! present relevant concepts and the-
that can help you etplain and predict the bchavnnr of people ar work. In addition,
ymiTJ alw gam insights into specific people skills that you can use on the job. For
instaot'e, ysm 11 ic.^m a variety of ways to tin mt ate people, how to be a better cuinmu-
mator, »rul h<.u to create more eftectivc team.

Managing Workforc
Divers itv

mip<»runi and bnud-hased dullenges currently facing organizahnm

different. The term wc use RM* describing this challenge

,—diversity means that organizations are becoming more hetero*

cTim o gender, race, and ethnicity. The term encompasses women.
proloFK » I .k
. . I A bin Americans. It ;,ls<> includes the
African Ainencans. Hispanic Ameruans, anc J 5 Mcireovef. workforce divenity
phyMcdly disuhlcd ^Tuys «n. lesh... as well as the Unite<l
is an i«uc ,n Canada, Australia, South ,dj„« large
States. Managers .n '*’ , ,r’increasingly characterized bv
itrhinrmportaa^..^ ^nanagerial jobs. Women, long
h J-parins tcHipomrv jobs in Japan, are now moving into managerial r«siaons.
dl^reaaJn of die European Union, which opened up horden, throughout much of
western Europe, has increased workforce diversity m organizations that operate m
countries such as Germany, Portugal. Italy, and Irance-
Organizations used to take a “melting pot" approach to differences, assuming
that people from different cultures and nacionaliries would somehow' automatically
want to assimilate. But employees don't set aside their culTin-al values and lifestyle
fM-eferences when they come to work. The challenge for organizations, therefore, is to
make thentsefves more accommodating to diverse groups of people hy addressing dif-
ferent iifesq-les, family needs, and work styles. The melting pot assumption is being
replaced by one that recognizes and values differences.'^
Haven’t organizations always included uicmbers of diverse groups? Yes, hut they-
were .such a small percentage ot the workforce that no one paid much attention to
them. Moreover, it was assumed that nunoridcs would seek to blcnd-m and assimilate,
llie bulk i)f the prtf'l9S(Is workforce were male Caucasians working frill-dme to sup-
port a nonenipioycd wife and school-aged children. 'I'hat’s IHJ longer true. Currently,

46 percent of the U,h. bbor force are women. And minorities and immigrants make
up 23 percent.^
Workforce divers it)' has important implications for management practice.
Managers need tn shift rheir philosophy from (rearing everyone alike to recognizing
differences and rcsfxinding to those differences in ways that will ensure employee
retention and greater productivit)’—while at the same time not di<;criminaring.
Diversity, it positively managed, can increase crcariviiy and innovation in organiza*
rions us w ell as improve decision making by providing different perspectives un prob-
lems. WTicn divcRity is not managed projserly ±ere is jxnenrial for higher turnover,
more difficult conuinmication, and more interpersonal conflicts.

Responding to Globalization

Managenicm IS no innger constrained by national borders. Four of the five highest

^■Kssing McDonalds restaurants are in lions- Kong, Prentice Hall, the largest seller
'ti k-'r""* publisher of this IxM.k, is oJned hy a

eenTSfT*^”'’- F-«onMob.I a so-called .American company, receives aim.«r 75 p^r-

k “’c"" "•’■ch ‘’wns Mdvo. croAS-

working with Sr'^'Smrer’

two ways. Pint, if

- liVeJy t.. find yourself in a foreign ^gntnent.
Onu there, ytm II have to manage a workfoae that .s hkdy n. he'very^SS
 J Chapter 1 incroduvtion u> Or^antzaiknut Bvhtvior
,n neck, .spinuions, ;.nd att,t.,.k.^ A,,,,, rhe ..nci vou were used to back home.
Serwwi. even vour coiifiiTy, y„L re going to Gjid yourself working with bosses,
pe^rs. ami eniployees who were bon. and raised in diftcren. cultures, l or instance,
,H„I i..oriv;.tcs you may noi lootit ate them. Or your style of co.iimuiucacion may be
jiraightlunviird and open, out diey may find this sndc unenmfortabk and dirvauning,
To rtork effectively with these people, you 11 need to undersund their culture, how it
h«s shapeii them, ai.d how ro adapt your management sn-le to tlieir differences. As we
discuss OB corceprs throughout rhis book, wem frequently address hots- cultural dif-
ferences might require managers to modily their practices.

Empowering People

If you p'ffc op popular busincs.s periodical nuw-aday.s, yo.ill read about die resliap-
ing ol rhe relationship between managers and thrase iJiey're supposedly responsible for
managing. You'll find managers being called coacl.es, advisers, spuiLsors, or facilita-
tors. In many organizations, employees arc now called associates. And there^ a blur-
ring between the roJes of managers and workers? Decision making is being pushed
down to rhe operating kvei, where workers are being given the freedom to make
diwces about schedules and proceduxes and to solve work-related problems. Ten or
15 years agti, managers were encouraged to get their eraplovecb to participate in
woA-rdated decisions. Now, managers arc going considerably Rirther bv’ allowing
employees hill control of their work. An increa.sing number of organizations are using
self-nun aged teams, where work era opera I c largely widiout bosses.
W'hat’s going on? VATiatS uoiriK on is that managers are eTttpmvering enipivyets.
They are putting employees in charge of what they do. .And in so doing, managers are
having to learn how’ to give up control, and emplov’ees are having to learn how to take
responsibility for Acir work and make appropriate decisions. In later chapters, w'ell
show how empow*erment iS chiiuging leadership styles, power relationships, the "way
work is designed, and die w ay organizations are structured.

StimuhTing Innovation and Change

W’hatevcr happened to VV. 1. Grant, Gimbcl's. Eastern Airlines, Siuith Corona,

Montgiiinrn* Ward, and J. Peterman? Al! these giants went bust! VVI^y have oAer
giants, such as Scars and Boeing implemenred huge cost-cutting iirograms and climi-
Mted thousands of jobs? To avoid going bust]
Todavs successful organizations must foster innovation and master the arc of
rVwgc or 'they’ll become candidates for extinction. V’icton* will go to organizanous

that maintain their flexibility, continually impnive their quahn. and beat t en compe*
Wwn to the marketplace v-ith a constant stream of innovauve produc^ and semccs.
DotnincA sinclc-handedh brought on the demise of thotwands of STnull pizza parlors
•hose managers thought they could continue doing •a but they ba<l been doing
, yttn. AnuzxH. con. is putting J lot of independent bookstores out ol
wu can succtssfolly sell books from an Internet Ueb Mte ox e
, •KH.iftiHy stolen a iivJKir j^ornon of the undcr-25 viewing an
network rivals through innovarivc programming, including Z^r ' ff

en.pk.yees c«. be the H,.petus fur innov^ri.^.

3 mMur cnmhliiw bkxk. I*he challenge for managers i.
 10
employee crwrivhy ^ntl tolemnce ft>r change, riic field of OB pn>vide5 a wealth of
itkas and lechniqoes to aid in rtralizing these

Coping with ”Icinporariness"

Manaeine used to lie characterized by long periods of stability, interrupted occawon-
alh bv short period, ot change. .Managing today would be more aaurately described
as long peiiods of ongoing change, interrupted occasionally by short periods o1 subil-
iiv’ Tlic work! that most managers and employees face today is one of permanent
• leinpomniicis/* The actual jobs that workers jx-rRirm are in a permanent state of
fliLK. So workers need to continually update their knowledge and skills to perform new
jub requirements. Tor example, production employees at companies such as
Careipilbr, Ford, and Akxia now need ro know how tn operate coniputcrized produc-
tion equipment. Thai not part ot Uicir job descriptions 15 years ago. Work groups
arc also increasingly in a state of flux. In the past, employees WTTC assigned to a spe-
cific department, and that assignment w’aA relatively pcrmanetiL 'I’licrc was a consid-
erable amount of secunry in working with the same peqdc day in and day out. That
predictabilin has been replaced by temporary* wnrk groups, teams that include mcm-
l»ers from different depaitments and wlw>sc members change all the time, and the
increased use of employee roUDoii to till consrantly changing work assignments.
Finally, organizanons dicinsclves are in a stale of flux. They continually reorganize
dieir\'arious divisions, sell off poorly performing businesses, downsize uperatiuns, and
replace peraianeni employees with temporaries.
Today's managers and employees Tiiust karn to copc with temporariness. I'hey
have to learn to live with flexibility, s|K)nuneily, wd unpredictability- The study of
OB can provide important insights into a work world of continual change, how to
overcome resistance to change, and how best to create an organizanonal culture that
dirives on change.

Helping Employees Balance Work/Life Conflicts

Tlie typical employee in the lybOs or 1970s showed up at the workplace Monday
through Friday and did his or her job in eight- or nine-hour chunks of rime. The
workplace and hours were clearly spedfied. I’hats no longer uue for a large segment
of today’s workforce. Employees are increasingly complaining that the line between
work and nonw'ork time has become blurred, cTcating personal conflicts and stress.
number of fortes have contributed to blurring the tines Ivtwcen employees’
work and pers<mal lives. First, the creaQon of global organizatioas means their world
never sleeps. At any time and on any iLiy, for insuncc. ihoasands < »f ^>almlcKJln^kr
ynployees are working sonwwhere. The need lo conMdt with colleagues or customers
« or 10 umc-zones away mean*, that many employees of global firms are ‘ on-cair 24
hours a day. Sect.nd, a>inmunjcadon technology allows employee, to do their work at
Tab in. This lee many |)eoplc in technical and
proksswnal jobs do then work any rime and firim any place. Third, organizations are
asking ampUnees U) put in longer hours. For insunct, Ixrween 1977 and 1997 the
average wni^eek insTcased from 4.1 to 47 houA; anti the number of people working
50 or more hours a week jum,Kd fn»m 24 pcrcxml to J 7 percent Finally, fewer bm-
lues have <mly a Mnglc breadwinner I< Jay’s iiiarned empbs^ is typc^ pan of a
J

♦*
♦
 Chapter i Introduction to Opnpix.ational Kehiivior
dMtlH'irecp ctnipk l*his inakc.*s it incixasingly difficult frjr n^arried cinplrj>xes t<j find
the time n» fuJrtd comniitnicnts to home, spouse, children, parents fnends.
Kmplnyecs arc increasingly recognizing thai work i> squeezing out personal
Jh’es and thev're not happy about ic. For example, recent studies suggest that einpkiy-
ees want jobs that give diem HexibilitvHn dieir work schedulcsso they can better man-
age work/life eonrtktsJ- In addition, the ncn generation of employees is likely to
ha>'e similar concerns?^ A majority of college and university students say that attain-
ing a halancc between personal life and work is a primary care:er goal. ’J’hcy want “a
life* as M'ell as a jobl Organizations that don’t help their people achieve wtirk/life bal-
ance will Bnd it increasingly hard to attract and retain the most capable axid motivated
employees.
As you'll see in later chapters, the fiehl of OB offers a nuxnlier of suggestions to
guide managers in designing workplaces and jobs that can help employees deal with
work/life conflicts.

Dec'lliHTig Employee Loyalt>’

Corporate employees used to believe that their employers would reward their loyairy
and good work with job security generous benefits, and steady pay incrcxbcs. But
beginning in the mid-1980s, in response to global competition, unfriendly takeovers,
leveraged buyouts, and the like, cotporanons began to discard traditional policies on
jub scvuriiy, •iemoriiy, and compensation. ’ITicy sought to become “lean and mean” by
closing fectorics, moving operations lc> lou’er-cost countries, selling oft or closing
down lcs&-prodtabic businesses, eliminating entire levels of management, replacing
permanent enployccs with temporaries, and substituting performance-based pay sys-
tems for seniority-based programs. Tris iTnp<irtanT to note tharrhis is not jii^T a N’orth
American phenomenon. European companies are doing the same. For instance,
Barclay's, ^e big British bank, recently cut staff levels by 20 percent. And some
German ITTIILS have trimmed their workforce and management ranks: Siemens, die
electronic engineering eongiomcrate. shed more than .^,000 jobs tn one year alone;
and srcelmakcr Knipp-IIoeseh cut its ^ntifijgprnrnt hierarchy' from five lei^els to three.
These changes have resulted in a sharp decline in employee loyalty.^*
Employees perceive that their employers are lew coniniittcd to them, and, as a result,
emj^yees respond by- being less committed to their companies.
.An important OR challenge will be for managers to devise ways to motivaw:
wooers who feel less coimnitted to their employers, while maintaining their organ!-
zations' global compeotiveness.

Improving Ethical Behavior

In an organtj^tional w orld characierirxd hy rime pressurcs. expectations of increasing

worker producrix ity’. and tough cumpctidon in the marketplace, it's not altogether sur-
prising that many employees fed pressured ro cut corners, break rules, and engage in
edicr forms of questionable practices.
Members of organisations are increasingly finding themselves facing ethical
situations in which they are required to define righl and wrong cunducT.
eaamplc. should they “blow the whistle** if they uncow illegal activincs taking
plitfc m ihar company' Shixild they follow orders with which they don't person*
Do they give an inflated pcrfi>rmance evaluation to an employee whom
12 Pirt» Prob<ue 1 .

:”;=ii?x;S'£::—
f mpla -ees «e people dl around rhem engaging in ur.eth.cal pracdce^le^ otfi-
dal! are .ndicted for padding their expense accounts or taking bnlres; succes-ihil exec-
utives use insider infonnatwn for personal finaiicui gam; university administrators
“look the other way' when a winning coach verixitly abuses his athletes; and even the
President of the United States distorts the truth under oath. They hear these people,
when caught, giving excuses such as “everyone does it,” ‘-you have to seize every
advantage nowadays,” “1 never thought I'd get caiighi,” or “it depiends on what rhe
meaning ol the word is.”
Manager? and their organizations are responding to this problem from a num-
ber of directions. I'hey’re wiring and distributing codes of ethics to guide employees
dinnigh ethical ddeininas. They’re offering seminirs, workshops, and similar training
pre^ams to m* TO improve ethical behaviors. I he}’’re providing in-house advisers
who can he contacted, tn many cases anonymously, For assistance in dealing with cthi-
cal issues, .^nd they’re creating protection mechanisms for employees who reveal
intemd unethical fKaoices.
Ibday^ manager needs to create an etliieally healthy climate in which his or her
employees can do their work pnxliictivelyand confront a minimal degree of ambigu-
ityregarding wliar constitutes right and wTong behaviors. In iipttoraing chapters, we’ll
discuss ths kinds of actions managers can take to create an ethically healthy climate
and to help employees s<.»n through ethically ambiguous situations.

THE PLAN OF THIS BOOK

C>^r V ’’'S behavior?
Our appp, ach us„ i bu.ldmg-bl.Mik process. ilbistruied in Exhibit 1-1 d.ure are

EXHIBIT 1-3
r
Chaptwl Introduction w (hwmiationaj Beh«,w

leeming 1 ncn *e nwve tm w wnsidcr rhe rul<> e.f ».

IKIIMI{)rhAv'U>r. Wc ^nclucle th.. «c6o„

{)tr mjMv c»t inibvidiial decision making. *” of mouvaunn issues and
The behavior of nenple m ffronne k
individual acting in his or her own wav. Pcontp’^ k.f total of each
Afir Ix-hat wr when they an- alone, Chap^ 7 tlin.uvtTn different from
We inmxluee a gi-oup behavior model, discuss WJV< address gn.up beljavior.
£on«iler a.nunujiication issues and group dcdsi.n.^malHn efitttive,
imptmant topics of leadenhip. trust, power ‘"vesrigate the
the fontul organizauon sysretn to our knowledge of ind' "c «id
Jim <s groups are more tl.aii die sum of their indiriduaf^i”^ l^^havior,
not necessarily merely the summation of die behavior .,f a lu
Chapters I .t ti.rough 17. we. disc.u.s how an or^SonV Lm? f*'1
«chfio(i)gv aficcr behavior; the effect that an •• L * and
«,p™£« l,»e „„ people, h-eX^o^^o™”. oXb

.r«», du, „„„.,ge„ can « ,o .ffee, beh.eio, foe *.

 PART II: The Individual in the Organization

HAPTER2

Foundations
of Individual
Behavior
After reading this chapter, you should be able to

1. List the domirrart values in today's workforce

2. Describe the relationship between satisfactior and productivity
3. Explain the theory of cognitive dissonme
4. Summarize the relationship between atthudes ar>d b^wi^
5. Explain how two people can see the same thing and interpret it differendy
6. Summarize attribution fteory
7. Outline the learning process

A n understanding .if indivi<liial behavior begins tvith a review o( the major usycho-
^ogical enmburiuns to OB. 1 Iwse contnbution.s are subdinded into the follow-
ing tour concepts; values, amtu.les, pcneption, md learning.

VALUES
• ■'' " ...«r .
Is capital pimishmeninght or wn.ng'- If a person likes jKiwer. is rliat good or bad’ The

answers to these qu^nons are value-laden. Some might argue, for exan^Je, that «pi-
punishxiKnt ,s right became it's an appropriaw retributi.Hi for erimessueh as
-
Values represent basic convictions that “a specillv mode of conduct or end-state
ofe^tence is personally or socially preferable m an ..ppositc .<
c«wl«ct or end-state of e«stem.-e." ■ They conca.n a imiStlav.< in^^ W «
 Chaptef 2 Eoundaiions oF Individual Behavior
g<Hxlt or desli ablu. Value syaiems represent a
pnonii/ing <>I individual values. I hey're identified by the relative importance an iiuli-
ndual awiigns to vnlues such as freedom, pleasure, scIf-rcFpecT, hnnesfy', ohedience,

Types of Values

Can wc cln*'Si1>’ values? 1 be answer is: Yes’ In this .section, we’ll review ru'O approaches
to developing % aluc cypnl«gie.s.

Rokeach Value Survey iMihon Kokeach created the Rokeach Value Survey <WS)?
The R^'S consists of two sets u I values, with each set con tail ling 18 individual value
items. One set. called terminal values, refers to desirable cad-scures of existence.
The^c are the goals that a person would like to achieve durnig his or her lifetime. The
other set, called instrumental values, refers to preferable modes of behavior, or
means of achieving 6c terminal values. Exhibit 2-1 gives common examples for each
of 6csc sets.
Sc'•'er ill studies confirm 6ac RVS values vary among groups.^ People in 6e
same occupations or catcgvrie^j (e.g., corporate managers, union members, parents,
students) tend to hold similar values. For instance, one study comparing O’jqioratc
executives, members of the steelworkers’ union, and members of a community
activist group found a good deal ol overlap among rhe three groups,** but also some
very signifieani differences. I he activists had value preferences rhat were quite dif-
ferent from diose of the other two groups. They ranked equaiic) as 6eir most impor-
tant terminal value; executives and union iiienibcrs ranked this value 12 and 13,
respectively. Activists ranked “helpfur as their second-highest instnunental value.
The other ru n groups bo6 ranked it 14. These differences arc important, since exec-
utives, union members, and aciivises all have a vested interest in what corporanons

EXHIBIT 2-1 Examples of Termiral and Insirumental Values

in the Rokeach Value Survey

Tentuiu) Values Instrumental Values _________________

A cwnfona^lp^life {a ^*pefous life) Ambitious (hardworking, aspiring)

A sense <i£ acc(*mphslui>enT fisuting Capable (cOTipcTent. eliieedve)

cuntribudon) Cheerful (Hgbdicartcd, fOyfui)

A world of peace (free of war and cwiflict) <dean<ftcai, cid>’)

A wofid of beaury (beauty of nature and the am) CotiMgeous (standing up foi your belief)

(hriMherhood. equal opporTunity* Fiir all) Help fill (woridng for the welfwe (4*
others)
Fwuh security luhng care of loved ones)
Honest (sinctrt, truthful)
Frcrtlmn (uvle|iendeiice. tree chokv)
Imaginxrive (darings vreadvc)
Hipfutc^ (utfiientcilnev.)
Logical (L'onsrsitnt, mdonal)
te*er hannoov (frvmlofn tfiwn inner coA^ct)
l.oring(afFa:t]onacc, tender)
(an entuvaUev kriurei\ lifiei
Obedient (dniifuJ, respec tful)
^^*•**<■1 (Mved. eternal li^e)
PoUte (ccHineous. wdl mannered)
^'*■1 nx'u^pwuun impcct. adnuraoon)
Re^Msibte (dependable, reliable)
Ta* IncAaUup (cluw esitnptiiHjnahip.)
ft H 1^’ Individual in the Organixatiun

d„, -AMien corjx.raliuns jn.l cridcal f^Xr

come together m negouanons or ctm cm in dirterences in (wfsonal value pref-
pohaes, they are likely to beg.n -th ’’X « e o. pX where the« perttnal
erenees. . . Reaching Agreement on any -qteciiie ««ue oi pmiQ . H
value, arx- importantly implicated might prove to be qu.ic difficult
Contempomrv Work Cohotrs Your author h» integrated several recent analyses
of work values'inro fi.ur groups in an attempt wcapntre the tm.que values of different
cohorts or generations in the U.S. workforce.'' [No assumption .. made that this
framework would un.versaUv apply aeros.s all cultures.) Exhibit 2-2 prt.po^ that
employees can IK segmented l.y the era in which they cntere.l the workforce. Because
most people start work between the ages of 18 and 23, the was also correlate closely
with dw chronolugival nt employees.
Workers who grew up influenced hy the Great Depression, World War U, the
Andrews Sisters, and die Berlin blockade entered the worktrirce dirough the 1950s
and earlv 1960s believing in hard work, the status quo, and authority figures. We call
them Once hired. Veterans tended to he loyal to their employee. In terms of
the fenninai values on the RV^, these employees are likely co place the greatest
importance ou a coinluruble lite and funil)’ security'.
Soi/WfT/ enrered the workforce from the mid-1960s through the mid-1980s.
.Members of this cohort were influenced heavily by the civil rights movement, the
Beatles, the V'iemam war, and baliy-boom compctibon. They brought with them a
large measure of the “hippie ethic" and distrust of audiority’. But they place a ^rcai
deal of emphasis on achievement and inarerial success. They’re pragmatists who
believe that aids can justih’ means. Boomers see the organizations that employ them
merely as vehicles for their careers. Terminal values like a sense of atcompli^inenr
and scxial recognition rank high with them.
A fry' lives Have been shaped by glohalizatitm, tw^o-carcer parenb. xAflV. AIDS,
a^ compuie^. They value flexibilitj; life uptioiis, and the achievement of job satis-
bcuon. Family and rchcionshjps are ver\ imporuni to this ixihon. Thev also eniov
important is 4n indicator of career perfo^nance, but

cs. Xen are less w.llmg to make personal sacrifices for the .sake of their etnptowr

EXHIBIT 2 2 Donttnant Values in Today’s Workforce

lateral the
Appmxioutc

A
Cubort Wortdwee _Curre7it Age Pominant Worfc Valuei
VeterMU i^SOs IX early 1960s 60<i*
H»cd -Orting, conservative. Luofonran«
‘‘’Pleywthe.ffgjniution
Boonien 1965-1905 •MMiO

Xo* 19«5.2aM) 25-W

Nuaan 2Wt»pfww Under 25

 Chaptar 2 PuiinAtium of Individual Rehsvior

chan pivnous generations were. On the RV'S. they rate high on true friendship, hap-

pine^. *n<l pleasure-

rhe most recent entrants f<) the workforce, the .Vritm, have grown up during
prrKpt rous times, so they tend to he optimistic abour rhe economy, to believe in tbem-
^Iv'es, and to lx* vt»nfi<IeiH about their ability to succeed. Nexurs arc at ease with
dhxrsit) and Ac fust generation to take technology for granted. ThcyXe lived most
of thetr lives with CD players. VCRs, celhitar phones, and the Internet. This genera-
tion is very money-oriented and desirous of the Aings diat money can buy. They seek
financial success. Like Xers, they enjoy teamwork but they’re also highly self-reliant.
They tend to emphasirx terminal values sudi as Freedom and a com to nah I e life.
An understanding that individuals’ values diller but tend to reflea Ac societal
values of iJic periixl A which they grew up can he a valuable aid in explaining and pre-
dktiiig behavior. Employ’ccs in Acir 60s, for instance, are more likely to accept author-
itv Aan arc Aeir tx>-workers who arc 10 or IS years winger. .And workers in Acir 3Os
are more likely Aan Acir parents to balk at having to work weekends and more prone
tu kn'e a job m mj<l-earcer to pursue another Aat provides more leisure time.

Valu€Si Loyalty and Ethical Behavior

Has Aere been a dcclAe A business elides? While the issue is debatable^ w lot of pw-
ple Aink ediical standards t>cgan to erode in die laic 1970s.If there has been a
drt ime in cAicaJ standards, perhaps wc should lock to our work cohorts model (see
Exhibit 2*2) for a possible explanation. .After all, managers consistently repon that Ar
acQun of their bosses is Ae most important factor inilucncAg cAical and unethical
bcharior in Aeir organizarions.^ Given this fact, Ac values of Aose m middle and
upper management Aould have a significant bcatmg on the entire rtliical climate
wiAin an organ izatiorL
'Ihrough Ae mid-1970s, Ac managerial ranks w ere dominated by^ Veterarw
whose loy*alties were to Aeir employer. Hlien faced wiA ethical dilemmas. Aeir deci-
sions were made in terms of what was best for Acir organize lion. Beginning in the
mid-to late 1970s. Boomers began to rise into Ac iipixr levels of manageincrn. Uy Ae
early 1990si, a large portion ol iniddlc and top management positions in business orga-
nuations were held by* Bcx)mcn>.
The loyaltv of Boomers ib to Aeir careers. Their locus is inward and Aeir pri-
mary concern is uiA looking out for “Number One.” Such sell-centered values would
he consistent wiA a dcdinc in cthiad standards. Could diis help explain Ae alleged
decline in business ethics bcchimng in Ae late 1970s?
The potential good news in ihis analysis is that Xers are now in the process of
mosAg into middle-management slots and soon will he rising Ato top management.
Since Aeir loyalty' is to relationships, Aey arc more likely to consider Ae ethical
unpheanons uf their actions on oAcrs around Aem. Tlic resuh? Wt might look for-
ward lu an uplifting of ethical standards in business over the next decade or two
merely as a result ofchanging values wiAin the cunagerial ranks,

\'^ues Across Cultures

In f Juptcr 1. we descrilwd Ac new g1<»ba] village and said “managers base to become
t>p*b4e of working wiA pexipk from different cultures.** Because s*aiues differ across
«j»ure>, an undersundmg of Aese differences Aould he helpful in explaining and
tt Pa rt H The I nd K'MIU al in t he t )i pa r iza tion
predicting beb.vinr nfeviployees fr„.n <liffere:K ^.ntrics- Acomparison ..f American
ind lao'inese cidtvrc trail help illiiStraTc this prdrtT. . I
Eic.in children are L.gin early rhe value. ,.f inriivrd.wl.ty and umqueness. In
c,..,tr3.t Janinesc children are indoctrinated co be ‘team players, ro work with.n the
kam to think analyze, and question. Thdr Japanese countetpa^ arc rewarded for
rccoonnne facts. These different s.x-ialization pracoecs reflect different tmitures and.
not surprisingly, result in differeiii tjpes nf tniployees- 1 he average U.,S. woiker is
more conipetiiii e and self-focuscd than the Japanese worker. The obviotrs o.nclu.s.on
frotJi ±c<e r»bsei-vnt5(Ui5 js thi^c prdicJonsof employee behavior, based on U.S. work-
er?, are likdv w be qft-wfget when the/re applied to a popuhnoii of cniplcyceb—
.suth as ihc Japane^{c^ who prefer iird perforin bener in stahtlardiicd casks, as part of
u work CG5in, ivirii gnjup-basvd decisions and rewards.

.A Framework for Assessing Cullui’es One of the most widely referenced

approaches for analv'zing variations among cultures \vafij originated by Geerx llofetede.^^^
He surveyed more dwn 116,000 TBM enijjloyecs in 40 countries about their work-
relaced values. .\nd what did he find? He found that managers juid employees vary on
five value dimensions of national ml hire. They arc listed and defined as fbllovr's:
Power distance—I he degree to which [>ei»ple in a countr)’ accept that power in
institutions and orgajuxaticns is distributed une<lually- Ranges from rehrivcly equal
(low power distance) lu exircrncly unequal (high power distance).
Individualism v^. tolleetWOT Individualism is the degree to which people in
a CQuuuy prefer to aiT a.’i individuals rather than as members of groups, Collectivisra
is the opposite or the equivalent of low individualism.
Quantity of life \3. quality of life—Qnanrity of life is the degree to which val-
ues such as assertiveness, the acquisition of monev and material goods, aod competi-
rion prevail. (Quality of life is the degree to wdlich |x:oplc value relationships, and show
sensitivin' and concern for die welfhrc of (ithers.**
Uncertainty avoidance—The degree to which [xeciple in a country' prefer struc-
tured ostr unstructured situarioiis. In coumries ihat score liigh on uncertainty avoid-
ance, people luve an increased level of atudety that manifests itself in greater iiervous-
ne.ss, stress, and aggressivene'is.
Long-term vs. short-term orientatioa—People in long-tcnu-orientation
countries look to the future and value dirift and persistence. A short-tenn orienratiim
values the past and present, and emphasizxs respect for tradition and fulfilling social
obligations.
Exhibit 2-.^ provides a summary of how a number of countries rate on these five
cUmensions. For instance, not surprisingly, most .Asian countries are more collectivi^
than individualistic. On the odier hand, the United States ranked highest among all
ccxintnes sun’eyed on individualism. **

ImplicatJons for OB Mf^r of the concepts that currcntlv make up the body of
^owkdge we call b,h<rdo,- have been developed by Americans usine
^nen^ s^.iects in doraesne contexts. A comprehensive study, for instance of more
than I I MO articles pubiLshed in 24 management and organizational behavioi^ journals
”’7“^ P‘--n''d r^ eal^ that approximately 80 percent of the sn«li« were done
mthe Lmted Stat«and had l>een conducted by .Americans.'- Follow-up studies coo-
tiAue to oaifinn the laci of cToss-culniral considenttions in management and OB

- ItL
 Chapter 2 Foundations of Individi

eXMltlT 2-3 Examples of Cutwrak Dknensions

P<iwer Quantity Uncertainty ly>ng-tcm

Coanvry Distance Individualim* ofLtfe*’ Avoidance OtientatMm*^
Own* High Low Moderate .Moderate High
France High High Moderate High Low
German)* Low* High High Moderate AAiKleratc
KtMig High ixkW High Low Higki
bukmeMi Low Moderiu Low Low
Moderate Moderate High Modevic Miideratu
NetheHanrb Luv High Low Moderate Moderate
Rusiia High Mudcrate I.IIW High Low
Uoited Starr* Low High High Low Low
VWtst Atriv* High Low Moderatt .Moderate Low

• A low «o*e K synonymous with collertrviwn

♦*A low score » synonymoui with high quality of life.
«** A low score ts synonymous with a short-term oflentatiori.
Adapted fiom G Kofst»de< "C^hmal CAuaems in WAMsanerx FIIOKM.* Academy of
Managenenv BreortM.
Fabwv

research.^' VVlut thi^ means is that (1) not all OB theories and concepu are unhrer-
sally applicable tu managing people around the world, especially in countries where
work s-alues are considerably different from those in die United States, and (2) you
should cake into consideration cultural values when trying to understand the behavior
of people in different countries.

ATTITUDES __
Attitudes are evaluative statements—either favorable or unfavorable—concerning
objects, {leople, i>r events. They reflect how one feels about something. When 1 say ‘i
like my job."* Tra expressing my atbtude about work.
A penon can have thousands of attitudes, but OB focuses on a very hmited num-
ber of idb-related attitudes. These include job satisfaction, job involvement (the
degree to which a person identifies with his or her job and actively participates in it),
and organizational commitment (an indicator of loyalty r<>. and identification with, the
organization). Without question, however, job satisfaciino has received the bulk of
attention.

Job Satisfaction

Job satisfaction refers to an individuars genrrd attitude toward his or her job. A per-
son with a high level of job satisfaction holds positive attitudes toward the job; a per-
son who k dissatisfied w ith his or her i<bt> holds negative attitudes about rhe job. V\'hen
people speak of emplovee attitudes, more often than not they mean iob satisfaction. In
tact, the rww terms arc frequently used interchangeably
WIttt Deumioet Job Satisfaction? VMiat work-related variables ileterminc job
Mtiafxwm* ’Ibe evidence indkates that the most important factors conducive to lob
Individud in the Organix^rx.. supportive working
satisfaction are .uentally challenging wo.i. equ.ubk
emtiitions, and supportive collea^es. opportunities to u« their skilU
Kinplojeet rend to prefer frbs P j feedback on how well they’re
and ahibties and offer a vanety ot tas , XiHenaing-Jobs that have too little
doing. These . ha. actensties ntake and feelings of
challenge ™.» tacdom, bu. employees will experience
failure. Under conditions ot moderate chauenge, .UM K
w!!,;™ °".x ’J’®"’ “"J p™”"-" *'■ '’"“'7 “ S'"?
las,, unxnfeoo,. X line with .belt expeetndons. Wl-cn pny » y., ns f.,t, b.sed
on job demands, indiwidnnl still leeel. and eommumiy pay sUnJards. satislaenon is
likeh to result Similarly, indivi.luals who pertxivc that pnunoucn decisions are made
in a fair and jus: manner are likely lo experience wrslacuon from i heir |ob$.
Em ploy ee** are concerned with their work euvironment for both personal com-
fon and fadliuun^ doiii^ a good job. 1 hey prefer physical surroundings ihai arc sale,
annforrahle, clean, and have a minimum degree of distractions.
Finally, people get more out of W'oil chan merely money or tangible achieve-
ments. For most employees, work also 611s the need for social interaction. Nor s«r-
prisinffly» therelorc, luving friendly and supportive co-workers leads co increased job
sadsfeoion.

Satisfactioii and Prcwhicrtvity Few topics have attracted aS much interest among
students of organi rational behavior as the sadsfaetion/producoviry i-clationshipj'^
The question typicilly ixwcd is: .‘Vc satisfied workers more priiducdvc than dissatis-
fied workers?
The early views on the sacishctioii/productiviry relationship tan be essentially
summarized in the statemciii “a happy worker is a prmhicrive worker.” Much of the
paternalism shown by managers in the I^JOs rhroiigh the IQSOs—for e.sample, fann-
ing company Uiwling teams and credit unions, h.ilding company pia.i«, and training
sujwn'Lsors TO be sciisinvc to the concerns of employees—wa> initiared with tlic intenr
to ny."> Ht^e workei^ha^y. Rtit the happy-wrker thesis wa.s based more on wishfol
thinking than on hard evidence.
•A more careful analysis indicates that if satisfaction does have a oositive effect
on productivity, that effect is fa^ly small The introduction of moderating van-
abks, however, has improved the rcladonshio For incrun/> rk i L •
stronger when employees' liehanor is not con.;L„ed o^S^ttn.He^ 00?^! f c'
tors. An cmployxcV productivity on machine-paced jobs for eicani f ‘

way around. If you Jo a goml lob.y-o.i nitnnsicallv feel good about 7

assume that the organizati.m rcu-ards prcxlucmitv, y^uthfaher add.uon if we
increase verbal retxignition. your pay level- and nro^Mbiliri^ 1^ should
rewards. turn. wil. increase yourleUl

tnaior dctCRninant of an employ **’'’“*J *

Satisfied emplmees would seem m.„.. bk'ely t- »lk pos,nvdy
 Cha pte r 2 Founda n o nj o f Indi I'i d usi Behavuir 2t

help iichcrs. a»d go heyt^d chu normaJ expcciaaons in their job. Moreover, satisfied
empkn’ees might he more prone to g<3 beyond the call of doty because they want to
reeipnKatc their pKitive experiences. Consistent with this thinking, early discussions
of <XJB issumed that it was closely linked widi satisfaction.^*^ More recent evidence,
however, suggests that satisfaction influences OCB, but through perceptions of
nwdese overall relationship between job satisfaction and QCBJ^ But
sati.sfaction IN unrelated TO O('B when fairness is con rroiled forJ*^ What does this
mcanr Basically, job satisfaction comes down to conceptinns of fair nutcomes, treat-
Tncni. and pnicedurcs.^^^ If you don't feel like your supervisor, die orgaxti nation pro-
cedures or pyy policies are fair, your job satisfaction is likely lo suffer significantly.
However when you perceive organiMtional processes and outcomes to be fair, trust
develop. And when you trust your employer, you’re more willing to voluntarily
eng5ige in behaviors th ar go beyond x’our formal job re quire oieiits.

Reducing Dissonance

One of the most relevant findings pertaining r«> aninujes is the fact that individuals
seek ron.q\tency. Cognitive dissonance occurs when there are incynsistenvies
between two or more of a person’s actinides or between a persim’s Ixjbavior and am-
tudcs. The theory of cognitive dissonance suggests that people seek to ntinimfae dis-
sonance and ihc discomfort it ciuses.-’
Di the real world, no individual can avoid dissonance completely. You know tiiat
“honesty is the best policy” but say nothing when fl store clerk gives you back too
much change. Or you cell your children to brush after even' meal, but don’t So
how do people COJK;? A person’s desire to reduce dissonance is determined by the
importance of rhe elements creating the dissonance, the degree of influence the indi-
vidua! beliwcs he or she has over the elements, and the rewards chat may lx; involved
in dissonance.
If the elements creating the dissonance are relatively iinimportant, the pressure
u» correct this imbalance will be low. But, say a factory’ manager—Mrs. Smith, w'ho
has a husband and setxral children—believes strongly that no company should jM)llute
the air tir water. Unfortunately, because of the requirements of her job, Airs. Smith is
placed in die |x»sinon of having to make decisions that would trade oft her company’s
profitability against her attitudes on pollution. She knows thflt clumping the coni-
pnys sewage mtn the local river (we’ll assume die praciict^ is legal) is in die best eco-
nomic interest of her firm. y\’hat will she do? (IIearly, iVlrs. Smith is experiencing a
high degree of cc^itivc dissonance. Because of rhe importance of rhe elements in diis
exan^pie, wc cun’t expect Mrs. Smith to ignore the inconsistenev’. Besides quitting her
job, there arc several paths that she can follow* to deal with her dilemma. She can
reduce dissonance either hy changing her behavior (stop polluting the river) or by
CTjmIuding dut the dissonant behavior is not so iinponant after all ("Fve got to make
a living and, in my role as a LXjrporaic decision maker, 1 often have to place the g<M)d of
my company abtwe that of the enviromiient or society.”). A third ahernative w ould be
.Mrs, Sitiiih to change her attitude fThere is nothing wrong with polluting the
nw. I. Sull another choice would be to seek out more consonant elementx lu out'
diss<*nanr txies (“ I’he Ixncfiu to skKien* fi\>m manufacturing our products
•We dun offset the ci>st lu Mk.'iet)* of the resutrirw w*atcr pollution
•|W IndmJwl ii» iheOrfaftlKitiiMi
c 4 u Udievt tbcv have over the cknunu will
The dejrer of mftuciuv that mdtv.duah ^ive the disv,-
hAve an unpart <« how rh^ thinit alnnu which thev have IMJ choice—
nance u. be an .mo^ntwllahk. -ulc-^-’h’nM a t d^son.ncc
they're not likely to be reeept.ve to preswre tn reduce
produdng behaviol is required as a result (»i UK n m^rilv Althniicrh di<i.
dSonani would be Ic.s chan If the behavior is performed voluncanly. Although <bs-
sonanee exists it tan be rationalized and justified. i.j
Rewiids also iniluencc the deercc tn which individuals are nintnatcd to reduce
dissonance. I^e tertsion inherent in high diss-mance may be reduced when ^oinpa-
nied by a high reward, l he reward acts tn reduce dissonance by increasing the consis-
tency side of the indnidual's balance sheet Because people in organiMiions are gncn
some fdnii of reward or reniuneration for their services, employees often can deal
wich greater dissonaiKv on their jobs than off their jobs.
These modemring fflcrors suggest diat just because individual experience disso-
(lajice, they will not necessarily move directly toward consistency, that is, toward
reduction of this dissonance. If rhe issues uruicriy ing die dissonance are oi inininu!

importance, if an individual perceives chat the dissonance is externally imposed and is

subsundaily uneontrolbbic. or if rew ards arc .significant enough to effect the disso
nance, the indiindual will nor he under great tension to reduce the dissonance.
H*hat are the organizational implicanons of the theory ol cognitive disso^
nance? It can help to predict the prupenUn* tu engage in b<xh attitude and behav-
ioral change. For example, if individuals are required by the demands of their job to
say or do things that contradict their personal attitude, they will lend to mexlifr
cheir anicude in order to nuke it compatible with ihe cognition of what they must
say or do. In addition, the greater the dissonaiue —after ic has been moderated by
importance, choice, and reward factors—the greater the pressures to reduce IIK

dissonance.

The Attitude/Bchavior Relationship

Early research on (he relatiou-ship between attitiidcs and behavior assumed them to be
causally related; (Jiat is. the ammdes people hold determine what thev do. Conmwn
sense, tw. suggests a relationship. Isn't n logical itu.c people watch tclension pro-
grams .hey like or that employees tn- to avoid assignments they find discastefuP
hehavSr?^ Ri‘" relationship between attitudes and
ari^ X chall^ged by a review ol the research.-^ On the l«sis of an evalu-
I I .nvestigated rhe .\-B reiaiionship, rhe reviewer con-
cluded that attitudes were unrelated to behavior or. at best, oniv sUghtly related More
^nt research has demonstrated that there is indeed a measurable r7h J^W
modcMting contingency vanaNes are taken iim. consideration
One A.ng that improves our chances of finding significant A-B relaoonshi« «
the use of both specific attinidcs and specific liehaviors 1. i. .v “

ywther moderator is social constraints on behavior r>i«cr««„,.;-.

««W1- beh„,„ .....
 Chapter 2 hiundauons of Wividual Muvior
K*ha**e in » vcrtain way hold cuxpunnal power. Gnxip pres^iurcs, fnr inaurKe. may
explain why an cinpInyTC whn holds wmg anri-union attimdc!^ attends pnnunion
oq^ni ring imn ings.
Of tTmrsv. A and B may be at odds for other reasons, individtiak can and do hold
amtradimory attitudes at a giv'cn time, though, as we have noted, there are |>ressures
toward cxinsistcncy. In addition, other things besides attitudes influence behavior. But
ir is fair to say that, in spite of some arracks, most A-B studies yield positive resnJu—
in other words attirudes </« influence behavior.

PERCEPTION
P«rcq>lion is a process by which individuals organize and interpret their sensory
impressions in order to give meaning h) their environment. Research on perception
consistently demonstrates that different individuals may look at the same thing yet
pen Give ir differently. 'I’he fact is dial none of us sees reility. Whai w-e do is inierprci
what we see and call it reality.

Factors InHuenung Perception

How do wt explain rhe fact that people perceive the same thing differently? A number
of fectors operate co shape and sometimes distort perceprion. These factors can reside
ill the /irw/tvr. in the ubjeci or forger being pen:ei*ed, or m the context of the.t/nwnw
in which the perception is made.
W’hen an individual looks at a uiget and attempts ro intcipret what he tit she
5e«, that interpretation is heavily influenced by the personal characteristics of the
indrviduai perceiver. Personal characteristics affecting pertc[Minn include attitudes,
personality, motives, interesrs, past experiences, and expectations.
Characteristics of rhe target being observ ed can affect what is perceived. T.xiud
people are more likely to be noticed in a group than are quiet one*. So, too, are
citremely attractive or unattractive individuals. Because laigers arc not looked at in
isolatkm. the relationship uf a target to its background inflornccs perception, as does
our tendency to group ckisc things and similar things together.
I’he context in which we see objects or events is also imponant. The time al
which an oliject or event is seen can influence attention, as can location, light, heat, or
any number of situational factors.

Anribution Theory

Mudi of the research on pcrceptiiMi is directed at inanimate objects. But OB is cun-

cemed with human beings, so our disnistion of perception should fincus on person
pert eption.
< fur ix’rreptions of people differ from our pcrceptionv of inanimate obiecis such
as deUcs. machines, or buildings because we make inferences about rhe actions ol peo-
ple that wc don't nuke about inanimate objects. Nonliving objects are subject to rhe
bws <rf nature, but they have no beliefs, motives, or intentions. People do. 1 he result
M that when we obserse people, we attempt to develop explanations of why they
behasc in certain wai^s, Our perception and judgmeni of a person s actions. therefiKe,
«i8 hr ugnifkandy influenced bv the assumptions we make alxMit the person^ inter-
nal atau.
The Indieiduxl in d*
. U k.u if-r-n i.rowKeJ VMleveh.pcxplnnatiotis ofhow we judge
Attribution theoryrhiUKcn proppedu P |»ehavi<,r.2*
people ddferen.ly Observe an individuS - behavior, we
t d "tJS Sdier ii was internally or exten.aUy caused. That determn.a-
attempt to (p disb.ittivcness, (2) ronsens.is, and (3) CCMI-
l«s inb-lc difference’ l>etween internal and external eausati-m,
ihenebborateoiieachoftherhrcedeicnn.ningfactors. ,
eausetl behaviors are those believed to be under the personal control of
the individual’- eause.l behavior results from outside causes; that is, the per-
-sor is seen as forced into the behavior by die situation. If one of your employees was
late tor work, you niitht attribute his l.itencss to his parrying into the wee hours ol the
morning and then oversleeping. I'his wo.d.l he an internal interpretation. Rut if you
attribured bk arriving laic to a major antvimuhilc .iccidcni that tied up traffic on
road he regularly uses, thcu yuu wuJd be making an external artrilmtion. As
obsen'ersv we have a i crulency to lu^ftunic dial others’ behavjiir is internally controlled,
while we lend to exaegerate die degree to which our own behavior is cAtcrDaily deter-
mined, but Ais i$ a broad genera lira bon. There sbU exists a considerable amount of
deviation in aiiribuiiun, depending on how wc interpret the distinctivem^ss, consen-

sus, and consisiency of the attic »ns.

refers tn whether an individual displays different behavaoi5 in dif
ferent siruanons. Is the employee who arrives late today also (he source of complaints
by co-workers few^ being a *gnof-off”? VVTiat we want to know is wheAcr Ais beiw'ior
is unusual. If it is, ibe observa" is likely to give the behavior an external aiirihudun. If
this action is not unwjiie, it will prolhibly be judged as internal.
It even one why is faced with a similar situation responds in die same tray, we
can say die behavior shows Our tardy cmjJtnxc’s l>chavior would meet
this criterion if all employees who took the same route to work were also late. From
an attribution pcr^^pective, if consensus is high you would be expected to gis'c an
external attrihiitioa to the employee’s unliness; whereas if uAer employees who
tt«k ihc same route made ii t.i work on rime, your conclusion for causadon would
be uitcrnal.
Finally, an observer looks for awjiffoiry in a person’s acrioas. Does die person
respond Ac same way over rime? Coming m 10 minutes late for stork is not perceived
m Ac same way if tor one eniphn ee it represents an unusual case (she hasn't lieen late
or several months) while for anodier ,t is part of a routine pAtten. (she is late tuo or
consistent the behavior, the more the observer is
inclined co attribute it to internal causes.
I he preceding explains whar you have seen operaling for years AH similar
behanors are not ,xr«.vedI similarly. W’c look al acnons an,I judge Aem uJthm th^
sinianonal amtett. It you have a reputation is a good student wt &il one test in a
course, the instructor is likely io disregard the poor exam M>hvS IL k il
atinbute the cause <.f this unusual performance to external condiHnn ’ t ’u
your fault: (But the teacher is not likely to ignore rhe S '^rsl f
has a cx.nMStent record of l«ing a |x»r performer.) Sinularlv. if eveTyX’iiTbTfT^)
the test, the instructor might attribute the outuime to external '
causes under the students' own control He or she might coi.clude^r^"
were p«.H, wr.nen, the n.mi was too warm, or that the students diS
rtMiy prercqiuMtes. Dcc«
 Chapter 2 FoundaOons of Individual Behavior

/\nt»thtr irnportanr finding from attnbiirion theory is dial there aic errors or
ittascs that distort iitrribuuons. I’’or instance, there is subsranttfll evidence that when
we make jtKlKiiinHs abmit the bchfl^^o^ of people, we have a tendency ro under-
esdntate the influence of extern.11 factors and overestimate rhe influence of internal or
personal factors?'^ This is called the fiioxiameatai actritrution error and can explain
uhV a sales manai^cr is prone to attribute poor pcrfoimancc of her sales agents to lazi-
new rather than to the in nova rive pr<xJact line introduced by a competitor. 'I'herc is
also a rendenci’ for individuals to attribute their owrj successes to internal factors such
as ahi I in' or effort while purring die blajxic for failure on external factors such as luck.
This is c alled the self-serving bias and hugge?<tN that feedback provided to employees
in performance reviews will be predicubly distorted by recipients depending on
M hether it is positive or negative.

Shortcuts to Judging Others

Making judgments about others is done all the rime by people in organizations. For
example, managers regubrlv ct’aluate the performance of their employees, and ojiera*
dves as<;e« whether their co-workers are jiurting forth their fall effort. But making
judennenes about othen is difficult To make the task easier, individuals cake shortcuts.
Some nf these shurrcuis are valuable—they allow us to make accurate perceptions
rapidly and provade valitl data foe making predictions. How'C\x*r, tiicy can also result in
significant distortions.
hl div i duals cannot assimilate all they observe, so they use selectivity. They take
in data in bits and pieces. But these bits and pieces are not chosen randomly; rbey are
selccovcly chosen depending on the interests, background, experience, and aiiicudes
of the observer Selective perception allows us to “speed read’ others but not without
the risk of drawing an inaccurate picture.
Its easy to judge others if we assume they are similar tx> us. Assumed similarity,
or the “like inc” effect, results in an individual’s perception of others being influented
more bj* what die observer i.s like dian by what the person being obscivcd is like. If
you want challenge and responsibility in your job, you maj’ assume rhar others want
the same. People who assume that others arc like them will be right only in those
instances when they iudge someone who actually is like them. The rest of the time,
they’ll be wrong.
MTicn we judge someone on the ba.sis of our perception of the group to which
he or she belongs, wc are using the shortcut called stereotyping. “Married people are
more stable employees than singles” or “union people expect something for nothing"
are examples of stereotypes, lb the degree that a stereotype is a factual geucralizarion,
it helps in making accurate judgmeiiis. But many srcreotypcs have no foundation in
fact. In chest* latter cases, scereotypcs distort judgments.
\N’hen we draw’ a general impression about an individual on the basis of a single
duracteristic such intelligence, sociability, or appearance, a halo effect is operat-
ing, ItX not unusual for the halo effect to occur during selection interviews. An inter-
hevcf may perceive a sloppily dressed candidate for a marketing research position as
an irrespunsihie pers«t whh an unpnffesskinal arritude and marginal abilities when, in
fact, the evulidatv may be highl>* responsible, professional, and competent. VMiat has
happened n that a single trait—appearance—has overridden other characteristics in
the iuervicwer's general perception uf the individual.
 1

IV Inflividual >n the

M Part II
LEARNING _ .. , .
The fin^l If we .n explain, prj
= »™'S sin
I nV?^ew iat'its vs hal we <lid when « went to school." In actuality, each of us
sSnuondv >n.^r to school." Learning is going on all the t.mc. A more acerate
dehnX of leaSai. therefore, .s any rekutely permanent change m l,ehav,or that
IMXUTS as a ix'siilr (»f experience. . , . ,
How do wc le^rn? pAbihit 2-4 siimmarixes the learningpnKess. hirsu learning
helps us adjpt ro. nixsicry our environment By changing our behavior to accom-
inodflte chnneingcondidonSa we become responsible cai?.cns and prodnenvc employ-
ees. But learning is built on ibc law of eftcct, which says that behavior is a fimciion of
its consequences.-^ Sclwtdor that is followed by a favorable cunscqucncc tends to EH;
re I >e a Led; behavior followed by an unfavorable consequence tends nor to be repeated.
Consequence, in this temiincJogy, refers to antihiiig a person considers rewarding
(i.e., money, praise, promotions, a smile). If your boss compliincurs you on your sales
approach, you‘rt likely to repeat ±ac bchav-ior, Conv’^rscly, if you’re reprimanded for
your sales approach, you’re less likely to repeat it. But the keys to the learning process
arc the two theories, or explanations, of how we learn. One is shopsnjf and the other is
WTien learning takes place in graduated steps, it is shaped. Managers shape
emfdoycc behavior by xweTnatically reinforcing, through rewards, each successive
stepdiat moves the employee closer co the desired behavior. iMuch of our learning lias
been done by shaping. M'hen we speak of‘"learning by mistakes,” w’c are referring to
’diaping- Wc try, wt fail, and wc irj- again. Through such series of uiaJ and error, MX

master skills such as riding a hicyxlc. plariug a musical instrument, performing basic
matheinadcal computations and answering multiple-choice qiiesmons on tests.'
in addition to shaping, much of what we have learned is the rc:>ult of observing
others and modeling our behavior after them. V^^ereas the trial-and-error learning
process IS usually slow, modeling can produce complex behavioral changes quite
Xol nr?' ’""T having aoubie in
doHTi pal. Then observe that person tn see what he nr she b doing that is diftrent
from our ar^roach. If wc find some differences, wc incorporate S tha"

EXHIBIT 2-4 The Leeming Process

.1
 Chapte r 2 Vnun d atiens of
27
Individual Behavior
ior repcmiin*. If our perfonuanee impnives (a favorable t onseqiwnceh we’re likely to
make » jK'niuntni change in our behavior tu reflect whnt we've seen w’ork for others.
T he process i.9 tiie same at work as it i.s in school. A new employee who wants to IM?
siiccesshil on her job Is likely to look for MJineone in the organization who is well
respected and sijceesshjl and tlien try to imitate that persons hehavior.
........ IMPltCATIONS FOR MANAGCRS

This chapter introduced several psychological concepts. Let’s now put

ihein together ;»n<i dcinonscrate their importance for die maniiger who is trying
to understand oF^aniz-aiis^nal behavior.
Exhihir 2-5 suuun arizes our discussion of in dividual behavior. In verv siin-
plified terms, we can say ih.li an individual enters an organiz^uon with a rela-
tive h' enu’cnchcd set of values and a tutu des, an<l a substandally established pcr-
sonaJity (a topic in our next chapter), .^though rheyVe not permanently fixed, an
emplovee’s values, attitudes, and personality arc essentially “givens” ai the time
he or she enters an organization. I low employees interpret their work environ-
ment (perception) will influence their level of mocivation (the topic of Chapters 4
and 5). w hat they Icam on the job, and, evenmally, their iadiridual w ork beliavior.
We’ve al«o added ahihry ni our model co acknowledge rhar sn in divid naPs behav-
ior is influenced by die talents and skills that person holds when he or she joins
the organization. Lcanting, of course, w ill alter this variable aver lirne.

Values

Why should a manager seek to know an inditd dual's values? Though they
don’t direcdv influence behavior, values strongly inllucncc a person’s atticudes.
So know ledge of an individual^ system can piovide insighr into his or her
acQCudes.
Given that people’s values differ, managers can use the Rokeach Value
Sun-ey to evaluate job applicants anil tletemtinc if their values align with the

OCHIBIT 2-5 l^y Variables Affecting Individual Behavior

 1

7fl Part II ITie todivirfual ir the OrparuMtinn

* - 4, ..mKirivet: s ncrfurm^Ticc and sanwction
dominant values of the .tfgnnizanym.^ organization. For
are likely m Iw higher tance on imagination, independence,
XytL^^A^Xd with an organization that seeks eon-
and freedom is Iikeiy a „ „„ ,nore likely to appreciate, evaluaie JKW-

S m be satisfied if they perceive that they do fit. 1 bs ar^cs for management

m sive dunng the selection of new employees to find ,ob candidates who nor
only have rhe ability, expermnee, and mouvauor. (n perform, hut also J value sys-
tem that is compaobk with rhe organization’s.
In addition, while values are certainly not nnifnnn among individuals cl rhe
same age the feet that people of toninion ages have similar experiences Translates
into somewhat similar work values. This suggests tliat people of like gcneraiicms
may find it easier to work together and help explain value conflicts among people
different genera tii ms.

Attitudes
Managers should be interested hi their employees’ attitudes because attitudes
influence behavior. Satisfied employees, for instance, have lower rates of turnover
and absenteeism tlian dissarisfiwl employees. Given diar managers want to keep
resignations and alisences down—especially among their more productive
employees—they will want lo do diings that will generate positive job ararudes.
Research on the sad section /productivity relationship has important ini pli-
cations for managers. It suggests that the god of making employees happy on the
assumpaon that doing sc will lead to high productivit}' is probably misdirected.
.WMgers would pel belter reMilts by directing rheir attention priinanlv to what
help employees become more ptmlucrive. Suctebs-ful job perfonnancc shook!
then lead ro feeling of accompJishmeni, increased pay, promotions, and other
rewards— all desirable oi.tcoaies- -u^hicii then lead to satisfaction with the job,
Atanagers should also be aw-are that employees will try to reduce cognitive
dissonance, More important, dissonance can be mana^l. If employees are
required to engage m activities that appear inconsistent to them or^ibL are at
odds with their attitudes, the pressures to reduce the r
lessened when the employee nemeive. ,k.. . resulting .l.ssonance are
beyond his or her control or if the rewards exremaliy imposed and
dissonance. sigruficani enough to offset the

Perception
Managers need to recognize that their empt.„.c« rear, w.
reality. So whether a manager's appraisal of L, to
unbiased or whether the organization^ wa«e objective and
est in the industry is less relevant than what ^t^tijally among the hifd»-
who perceive appraisals as biased or wage lev. k Individuals
dmons acnially exist, regardless of reality *'*^ ^**«'’«‘•’►if those cn-
mterprci what they see; inhereni in this proceJ orgumzc and
dtsttirtion. '=* tl-e potential hw perceptual
 Oiapter 2 Fnundarions of Individual Bchavi

The message to mana^rs should be clear: They need t£> pay close attention
to hi*** emplovccs perceive both their jobs and managvment practices. Rememljcr,
Ac valuable employee who quits for an invalid reastjn is just as “gone” as one who
quits r« a valid reason.

Learning
The issue isn’t wheAer employees continually learn on the job or not They du!
The only issue is wdieAcr managers are going to let employee learning occur ran-
domly or whcAer they arc going to manage learning—through die rewards they
alkwate and Ae examples Aey set. If marginal employees arc rewarded wiA pay
raises and pnunotions, Acy will have liede reason to change rhcir behavior. If
managers warn bchasnor A, but reward behavior B, it sliouldn’t sury>rue Asm i«
find employees learning to engage in behavior R. Similarly, managers should
expect that employees will look to them as models. Managers who are constantly
late to w’ork, or take two hours for lunch, or help Aeinsch'cs to company office
supplies for personal use, should expect employees to read Ae message diey're
sending and model Acir behavior accordingly.
A
a

4,
*
1

CHAPTER 3 _________________________ _

Personality
and Emotions
After redding this chapter, you should be able to

Descrioe inv eig^t cetegcnes m th? VBTl per$o<iabry framework

identify the 'Btg Five' personaHy variables and their relationship to behavior in
organisations

Oesafee lhe impact of job typology on the personaIrty/job performance relationship

4. Orfferentlate from drsMyeO emotions

l^ttfy the six universal emotions

in

Explain gender differences to emotional reactions and reacfing otfien

7. Describe wys in which emotions influence work*related behavior

w

.npl..ye« enter the orpnizadon >tith fairly well-cstaWished personalities. .And

their personal,o« fave a influence on their befavior « wort In this chap-
ter. wc mtrod^seAeral m^els for clasMhing p«^^sonaJiries and show the importance
<>t matching penonaijtv «ith |<>bs H) increase emnlnv^^ , -rc
to the topic of ent,U^.lc long **
behavior, we’ll show how etntfoons pit a I rrJe fo hl *’! organizational
employee befavior. “P*""

PERSONALITY
S,-ne ,w,.pk are quirt and passive; others are loud and acBresatve »n.L ~ \
peciple in leni»> of chararteristitt such as quiet, passive ** d««ribe
Unal.,» ouiaWc. ue’re categiHinng them in tern^rfL-^ ’ ygieaMve. amhitMiin.
uah p«>«.lity. ihercfurc. o the o^fanation
yfy (hai twrvm r’zwwigicU UWa wr lar tu d4»'
 Chapt^ 3 PcrRonaliiy and K mo firms

ITie Myers-Briggs Type Indicator

On thi; basis of’the aiisu^ers iiniivdduals give to the test, they arc clissified as extriH
veruil or in cn> verted (K or I), sensing or intuitive (S or N), thinking or feding fl' or F),
and perceiving or judging (P e»r J). These classifications arc then combined into 16
perwinalin* npes 7b illiHtrate, let’s take several examples. UsTJs arc risioouhes. They
nsuallv have onginal mindK and great drive for rheir own ideasand purposes. They’re
dnrartenzed as ricepucal, critical independent, delerinined, and often stubborn. ESTIs
are organ iters. They’re praciieal. realistic, niaucr-of-f^r, wnrh a natural head for busi-
ncse- or mechanics, Thes* like ro organize and run acuviiies. 7'he F.NTP type is a con-
ceptLializer. I le or she is quick, ingenious, and good Jt many things. 'This person lends
tu be resource fid in salting challenging problems but may neglect murine assignments.
A snuf)- thai profiled 13 contemporary businesspeople who created super-
MK’cesjsful finus such as Apple (Computer. FedEx, Hontla .Morors, Abcrosoft, Price
Club, and Sony found all I? to be intuitive diiiikers (NTs).“ I'his finding is particularly
intcresoIig because rnniidvc thinkers represent only about 5 percent of ihc population.
Wore than 3 million people a year take the AWTI in the United States alone.
Organirdtions using die .MB71 include Apple Computer, AT&T, GE, Co., plus

The Big-Five Model

In recent years, an impressive bodv of research supjxircs that five basic personal-
in- dimensions underlie ail others. Fartr’in; in the Big Five Model are;

Cwfn«7rM/wB€.ty: This diniensiun is a measure olTdlability. highly consden-

Peoplc with peftitive emotional stabilit)* tend to be calm, self-confident, and

secure. I hr we with highly negative scores tend tu be nervous, anxious,
depressed, and insecure.
Opmn^a tA exfffnenar. I'he final dimension addresses an individual’s range of
inrerr<fs and £ucinauon with noveln. Ewemelv open people are ertadve. curi-
ous. and artisdcally sensitive. Those at the other end «jf the openness categors’
are e<xivencKKial and find comftirt in the familiar.
iw Wkuto.1 in Ae <»rg»ni««.on . .

r^t Z nee^s architects, accountants, attorneys), pohce, managers, sales-

a„a s.,iea
lr:S7>^xk S showed Htat ecnscenriousness pre.hcted job perfor-

"'“"'iS otherp“?2.t'inv!L predictability^ depended on both the per-

fomtance criterion and occupational group. For instance, extrovcnion predKted per-
formance in managerial and sales positions. This result makes sense because these
occupations involve high social mteracuon. Similarly, openness to experience was
found to be itnixiriant in predicting training profiaency. which, coo seems logical.
W^at «asn c so clear was whi' emotional stalnlity wasn’t related to job perlomiancc.
Intuitively, it tvould seem Aat people who are calm and secure would do belter on
almost all jobs than people who arc anxious and insecure. I'hc researchers suggested
that rhe answer might be chat only people who score fairly high on emotional stability
retain their jobs. If that is true, then the range among chow people studied, all of
whom were cmployeds would fcnil to Iw ejuile .^niall.
Other Kev Personalitv Attributes
*•
Six addiuunal penoiuUn axcributes havY been idenrified th^t appear to have nuire
direct relevance for explaining and predicting behavior in urganizadons. I hey are
locus of control, .Macliiavcllianism, self-esteem, self-monitnring, risk propensih; and
*T>'pe A personalitv.
Some people believe they arc masters of their own fate. Other people see them*
ticbes as pawns of fare, believing diar what happens to them is due to hick or chance,
l/xnis of concrul in the first case is intcniab these people believe the>’ cx^trd their des-
tiny. Those who see Hwir life as being conUoIltd b\' outsiders are externals. The cvi-
dence shows dur employees who rate higli in externality are !c« Mtisfied with their jobs,
mure alienated from die work setting, and Ir-ss involverl in their jolis than are internals.
I* 5 *J• • a pKjr pcrtbrrnance evahiution
on their bosss prejudice, their co-workers, or other events outside their control.
Intern^ would probably explain the same evaluation in tenns of their own actions
Machiavellianism (Mach) is named after
N.ccolu Maduavelh who wTote m the sixteenth centun- on how to gam and u.sc
power. .nd>v.dualI cxhihicing strong .Machiavellian tendencies is manipulative
maintains emounnal dtstance, and believes that end.s cat, justify means Tf n worb
use It is consistent with a high Mach pcispective. Not surnricT,„l. \ L t
nii>re likely to engage in Iw-havi.ir that is cthicallv nu«M ^ki E
Do Hgh Machs make good employees? That answX X^s on tJe n" f 1 1
whether you consider cihicai implications in evaluatinr^erfJin^
require bargaining skills (such as labor negotiator) or wL"^ "
rewards for winning (as in commissioned sales), high Machs will “c
the ends can't jusbf) the means nr if rhere are no ahsolum ' ptoduccivc. But it
our ability to predict a high Mach^ perfoniiance wilt be i performance.
People difter ,n the degree to which they |,ke or di.slikTl*
L'ullcd acK-e^teem. Resr-jnh finds dim Tb«s trail i»
directly
 chapter 3 Personality and Emoboru 31
su<vcs5 Pei»ple with high seif-esteem, for instance* believe that they possess the
sbiliA rhn’ need in order to Hutvecd ai work. Self-esteeiTi (SEj has also Ix^en found tn
Aftxx 5Aisceptibilii5 to outside influences. People with low SK arc more susceptible to
external influences than are high SEs. Low SEs depend on rhe receipt of positive eval-
uations from others and as a result, they arc more likely ti> seek approval from others
and are more prone to conform torheheliefrand behaviors of those they respect than
arc high SEs. In managerial positions, low SEs will tend tn be concerned witli pleasing
others and, therefore, are less likely to take unpopular stands than arc high SEs. In
terms of job sati^fjcrion, the evidence indicates dwt high SEs arc more sadsficil with
their jobs than are low SEs.
Did you ever nodec that some people are much bciier than orhers at adjust-
ing their behavior to changing situations? Thu i-s because they score high in self-
monitoring. High .self-monitors are sensitive to external cues and can behave di Her-
enrh'm dificrent siniations. 1 hey're chameleons—able to change co In the situation
and to hide rheir true selves. On the other hand, low’ sclf-ninnirors are consistent.
They display their true dispositions and actinides in every hiniation. 'I hc evidence
suggests that high self-monitors tend ro pay closer artendon to the behavior of others
and are more capable of conforming than low* self-raonitors. High self-monitors also
tend to be better at playnng organizational politics because thcy'ie sensitive to cues
and can put on different “faces” for different audiences.
People differ in their willingne.ss to lake chances. Individuals with a high risk
propensity make more rapid decisions and use less information in making their
choices than individuals with low risk propensity. Alanaffers might use this infouna-
tinn to align employee risk-taking prnjiensiry with specific job demands. For instance,
a high risk-taidng propensity’ may lead to more effective performance for a stock
trader in a brokerage firm. This type of job demands rapid decision making. On the
other hand, this personality chaj-actcristic might prove to be a major obstacle for an
accountant who jicrfonns auditing actirities. This latter job might be better filled by
someone with a low risk-taking projjensjty
Do you know people w'ho are excessively coinpennve and always seem ro be
e.vperiencing a sense of time urgency ? If you do, ifs a good bet that those people have
a Type A personality. Type .As are characterized by an incessant struggle to achieve
more and more in less and less tinte. They’re inipaiicnt. cope poorly with leisure time,
and create a life of self-imposed deadlines. Tn North AmcricaJi culture, such charac-
teristics lend ro be Eighh’ prized and positively associated with anibition and the suc-
cessful acquriiiion of material goods. In terms of work beha^nor, Type 2^ are fast
workers. They emphasize quantity’ over quality. In managerial positions, Type
demonstrate their competitiveness hy working long hours and. not infrequently, mak-
ing poor decision* because they' make them too last, lype .A^ are also rarely’ creative.
Because of iheir concern with quantity and speed, they rely <jn past experiences when
faced with problems. They will not allocate the time necessary n> develop unique srdu-
tiuns to neu problems, li appears that the Type A personality* is more likely to lead to
hi^ perfortoance in jobs such as sales than it docs in senior executive positions.
Personality and National Culture
IXi personality* frameworks, like the Big Five model, transfer across cultures? Are
dunensams such as focus of cuntrd and the Type A personality relevant in all culmres?
I^i oy u> answer these que&uorw.

4
Ilic IndividuaJ in Gr^jniauor
J . f J Hiff Five model appear in aJm*j«
rhe five penonalir>'fACiors iden ic „( (.ulnire', --nuch as China.
cToss-tulrural studies I his invutes a * Pakistan, and the United States.
b,.d, Jup.n. Chine-M- fo. e»...plc, us.
Diflfinwccs rend tosurbte > t c tn p rateporv of agrccahlcntss
Ac c«ep.ry h.gh amount of agreenwn,.
i^iiXSTirum dex^elopcxl countries. As □ «« m point a wrapre
o%tudi« cmenng people from rhe l.-n.mn Etirope.n (^mun.ty
found *« cmsc-ient.ousness was a vahd predictor of pcrfonnnnce across pbs and
occutoriond eroups.^ Thts Ls exactly whar U.S. studies have found.
There are nn common pcrsonalit)’ types tar a given country. You can, for
insanix. find high and lou n.k-takers in almost any cultufv. Yet a country’s culture
infiuejiccs the dominant personal ir>’ cbarattcristics of its pnixilaaon. we can see this
by looking at locus of control and the lype .A personaiity.
There B evidence that cultures differ m terms of people’s relationAip to their
environment/* in some cultures, such as those in North Amenca, people believe that
they can dominare their envirnnment. People in other societies, such as Middle
Eastern countries, believe that lite is essentially preordained. Notice the close parallel
to internal and crtcmal IOCILS of ixintrol. We should expect, therefore, a larger pro-
portion of internals in the American anil Canadian workforce than in the Saudi
Arabian or Iranian workforce.
Tlie prevalence of Type A personalities will be somewdiai influenced by the cul-
ture in which a perMin grows up. There are Jypc As in every' country, but there v.'ill lie
more in capitalistic countries, where achievement and inatehal success are tvig+ily val-
ued. For instance, it is estimated that about 50 percent of the North American popu-
lation Ls Type A<’ I’his pcrcenage shouldn’t be surprising, The United States and
(.anada boih hai’e a high emphasis t>n rime management and efOdcncy. Both Cultures
stress acaimplishfiKIlls and acquisition of money and material goods. In cultures such
as Sn-eden and France, where maierialism is less revered, wc would predkr a smaller
proportion of Type A personaJiiiei*.

Matching Personalities and Jobs

Obviously, individual personalities differ. So, too, do jobs. Following this logic, effriris
have been made ,o match personalities with the proper jol«. The Researched
personality |ol>fit Aeon, ,s the mx-personality-types model This model states that
« employees saosfeetion with and propeasity to leave his .< her job depend on the
Si:” Mx n persondity matches his or her occupatio^l environ-

tarns --
like or dislike, and their answers Ire used to fo^^
procedure. research suonglv supptnis the hesaXfd^Za
lire shows that the doser L fieiX or ‘"V'’

trv highly dissiinihr wxw rfiagonally ufip<KU(*

Uliat does >11 ihw me*n? I he iheon argues .
nimover UiweM when fiersonaiity and iiccupatinn are in “ highest and
grctnwjkt. Suael individuals
 Chapter 3 Pervonulity and F.mooona

EXMWf Hofland's Typology of ^sonalily and Sample Occtnations

Personality Charactcristk< Sample Occuparioos

_______________
Rralbear: Pre fen phyticel
iHriTies that require stcill.
strength, ami c«H»rdjnaOoo
Imxatifiim PrefiBn
M*nM(»c> invoking thinking,
onraniring. and umferstindjfig
Social: Prrh pi acnriboihst
mtTvkc helpiog and
deteJopiiig others
CnaventionaJ. Preten rule*
re/ulaml, urderi); and
nnambipHMK actirioes
Enterprising'. Pre^n v’crhal
aemme^ an which there «v
oppcartii nines to influence
others and anam pow er
Arisbe Prefers ambiguous
and unsy^matic activihcs
diat allow creative evpression idcalisQc. etnotionsl.
SMca BaM on J.t HoHan^. Uafcm^ UXMMMT Cnoees. A ^mry Qt incatroMi ^rsonMrMs and Ut*
&?wlnxmePts. 2nd
M. Saddle fine. NJ: P<Mce Hau. 19BSK
Shy. genuine, persistent, staWc. Mechanic, drill press
open ror, a«c(nb|y«1inc
CiiO6irming, practical
worker, fanner
i\fMl>*t)tal, originaL curious, Djolfjgist, economist.
independent fDJthenuQcUn, nei^'i r^orcer
Socialdc. friendly, erxiperaiivc,
Social work LT. tdcher.
undemanding
counselor, cbnical
^^vnfrjrmtng. efficient, psych olcgist
practical, unimaginaiive. Accnuni am, rtr JH irai e
mina^. b&nk celter,
inflexible
file dcrk
Self "Confident, amhiooua, Lavycr. real mare
energetic, domineering public rdaikfOa speualial.
small business manager
I magi nah ve, Painter, musician, writer,
disorderly. interior liecnrarnr
imprachcaJ

EXmiT 3-'2 Hexagonal Diagram tii the Relationship among Occupational

Personality Types
Cemmionaf

ArtitPe
(A)
(Q

.5
-nKb„lkidu#llnthenrp»mr»t'.in
In torth. A real-
should he in <KiaJ jobs, convmmn‘ situation than a realiadc person ifi
jsric person in a realnn*.’ ’ J* . . • ^he most incimp-ucnt snua-
an invfsripiivc job. A realistic pereon i ■. - ,j) there do appear to he intrinsic
nonpr^sibk. The key points of tbs m.HJel J,
personality di.ferences among .nd.«dna s. < J ,htmld be wore
”;S?."nlS:tardy -han pe.>plc in mcongmeo, io...

EMOTIONS
(>n Dcceinlxr 26. 2(Klft, a 42-ycar-olil software tester al a Boston-are.i Internet ctin-
sulrinc firm walked into his place ,>f work. zVmed witli an AK-47 assatilr nfle, a sly.t-
gun, and a wmiatnomaue handfim, he killed seven of his co-workm. hor dus worker,
anger had led to violence.
Going on a shooting rampage ar work is in exirccnc example, but it does dra-
madmllv illusrraie rhe rheme nt this section: Emotions arc an important factor m
«
empJoyee behavior.
Given rhe nbviwis role rfiat emotions play in our everyday life J t might surprise
^'ou tn learn that, until ver^* recently, the topic ol emotinns had been given little or no
aucruion wirhin rhe field of OB J low couJd this!«? Wc can offer n**o possible e>pla-
[uuons. ITic fir-vt is the myth of rativfiulityy Since the late nineteenrh century, orgaili-
ra dons have been esscnnally designed with the objective nf trying to control emo
tiOQS. It wax twlieved that a weU-rim organization was one thatsuccessfiillv elJniinavcd
fruscradon. anger, love, hate, joy grief and similar feelings. Such emotions were seen
as die antidwiis nf radonality. So alAough researchers and managers knew Aat emo-
tions were an inseparaWe pan of everyday life, they’ tncil ro create organizadons that
were emodnn free. That, of conrse. WTIS not possible, llic second foelor that acted ro
keep emntions nut of OR was the belief that rmoiionf of any kimi t’.vrr ihstuptiVf
When emotions wure considortd, the dix-u.'.sion focused on strong negative eian-
ti.m.s- -«peaally anger-chat inierfertxl with m c..,p|oy-cc\ abilitv to do his .«■ her itJ,
c^-nvely. Emonoas were rarely xiei^ed as hving conscnjoive or able ro stimulate
penonnanr^-ejihancing behaviors.
Certainly some enwuons. partclariy when exhibited at the wning time, can
reduce employee pcrlormance. Rut this change the reality that^ mplovees
bnng an emoBona! component with them lu work ei-en- dav and rE« ,n J'n#
IS complete without txmsidermg the role of eiuotioui in wo^bce Itehavior. ’ '

WTiat Are Emotions?

Akhoi^h w donV want to obsess ^miit definiooiis he&w „ . ,

analysis, st need to clarifr three tern, that are clriLe^^le^“"t'"'T
and aniuiZt. ,r^/, nwoMofl.'.
Afffct b a generic terui that covers a broad ran«. f_«
ence. Il’s an umbrella concept that erwompasses both PT * people expen
are intense feelings that are directed at .mXne ZT
fwlings that tend to be lea intense than ciiiotiorts, and th^U^jL^ ’ *^"**'>- •"ood* •'f'
Emotioiisarereactiof»h>anobie«.niaatrai( «‘">nlu'
ywir emotrnrs wlwn jtxi re “haRjy about wwnetbinif . kbu sh. .u
S- ’WMsome.^c, .rfM.rot
 Chapter 3 Persaiulity aad Kmotnu

M<xMk on the other hand, aren’t directed Jt an obievt. Emotion!^ can him into
moixK when \*<ni hwe fbeus on the ccmtexnul ob|ccT. So when a work colleague chtiarx:^
nw hit the w jy yon spoke to a clier>t, you might become angn' at him. That is. you show
cnuKicHi (anger) towi'anl u specific object (your colleague). But later in the day, you might
find youmeit juAi generally dispirited. You can’t attribute this feeling to any single event;
yvu're just not vuur nomiak upbeat self. I'his affect state describes a mood.
A related affect-term chat is gaining increasing importance in organ! rarional
behanur is emotiunal labi^r, E\ en* emploj ee expends phx’sical and mental labor when
they put their bodies and cognitive capaliilities. respectively, into their job. But most
jobs also require emotional labor. This is when an employee expresses organita-
nonally desired emotions during interpersonal transactionsJ^ I’he concept of emo-
tional labor originally devcloj^d in rclauon to service jobs, jVrlinc Hight attendants,
for instance, are ex petted to be chccrlu). funeral counselors sad. and doctoi^ emo-
tiunall)* neutral. But today, the conc*epr of einodonal labor seeiiis relevant co almost
every job. You’re expected, for example, to be courteous and not hostile in inter-
actions with co-workers. And leaders arc expected to draw on emotional labor to
“charge the troops,” Almo-U every great speech, for uisunce. contains a strong cmo-
donal component that stirs feelings in others, /\s wx- proceed in this section, you’ll
see that the increasing importance of emorinnal labor as a key component of effec-
tive job performance has given understanding of emotion a heightened relevance
within the field of OB.

Felt versus Displayed Emotions

Emotional labor creates dilemmas for employees when their job requires them to
exhibit emotions that are incongruous w ith their actual feelings. Not surprisingly, tiiis
is a frequent occurrence. For instance, you may find it very <lifficuk to be friendly with
evwxine at work. Mayl»e yon consider someone’s personality abrasive. .Maybe yoo
know someone has said ncfidve things alwtui you behind your back. Reganlless, your
job requires you to interact with these people on a regular basis. So you’re forced to
feign friendliness.
It can help vnu to berrer understand emotions if you separate them into fch ver-
sus Felt cmocions arc an individual's acTual emotions. In contrast,
<liipla%'ed emodoos are those that arc organizatiunally-requircd and considered
•pprupriace in a givxn job. nicj-’re not innate; they’re learned. ‘’The ritual look of
delight on rhe free of the first nmncr-up as the rww' Aiiss .Americt is announced is a
prcxluct of the display rule that losers should mask their sadnes.s with an cKprcsswn of
fi* the Winner."* bimilarlv. tDost of us know’ that wc are expected m act sad al
funerah regardless of whether we consider the person’s death to be a loss and to pre-
KwJ to be happv at weddings even if wc don’t feel like celebrating?^ Effri*tive roan-
•ftn h«T learned to lie serious when gning an einplo\*ec a negathx pcrfuniiancc
naluatHm and to cover up their anger when ^ev’ve bwn passed over fur promotion.
And the salesperson w ho hasn't learned to snuic and appear friendly, regardless of his
«»r her true feelings at the momenu isn't giing to last long on most sales jobs.
The kev* point here b that felt and displayed enuitions are often diftcrent- I»
freu mans peo^e have problom w*orinng with others simph* bet'ause they naivdy
••me that the onoonm thes* see ochen display is what those others acniall}' fret
Th» w pmeuUrH* true in oqtaniaatKau, in which role denunds and sicuatiofu dUB
pcxiple tai nhdMt eniou«ul behaviors that mask their true feelings.
Individual in Orgiwratinn

The Six l^nivenal Emotions

Hniii and define the fundamental or basic set of

.ni^rsal emt.™ ange. fo.n happ).

'JS T-t Sri that these six emotions can be conc^ahz^ « existing
. ^n.u.,o Tile closet any wo emotions are to each other on this contm-
uu"m irmore people are likely to eonh.se them. For instancy, happiness and suriinse
“r^-cntlv nnsuken for each other, whde happiness and disgust are rarely con-
fused. bl addition, as we'll elaborate on later m tbrs secUon, cultural factors can also
influence interpretations. , , , .
Do ihese six basic emotions -surface in the workplace:- .absolutely. I get
after receiving a poor performance appraisal, l/ear that 1 could he laid olf as a resuh
of a company cutback. I'm ritd about one of my coworkers leaving to take a new job
in another city. Fti. h/pp} after being selected as cmployee-of-thc-month. I’m
disgusted with the way my supervisor Ueats women on our team. And I'm sirrprisetl to
find out that management plans a complete restructuring of the company’s retire-
raent progmin.

Gender and Emotions

It's wddy issumed that women are more *in touch** with their feelings than men—
that they react more emotionally anil arc l)erter able to read emotions in others. Is
there any truth to these assumptions?
The evidence does confirm differences between men and women when itcumo
to emotional reactions and abilih' to read others. Women show greater emotional
expression than men*^; they experience emotions more intenscl>'; anil they more fre-
quently express both jxisitise and negative emotions, except anger/' In contrast to
men, women also repon more coinfofi in expressing emotions. Fin ally, women are
better at reading nonverbal cues than are nien.-^
V^'hat explains these difference^? Three possible answers have been suggested,
One explanation is the different waw men anil wwnen have been socialued.’^ Men
arc taught to be tougii and brave; show nig emotion is inconsistent with this
Women, on the other hand, are socialised to be Jiurwring. This mav account for die
percepuon rh« women are gcuerally warmer and friendlier than men For instance,
women arc expected to express more poaiove ennmons on the fob (lor example, l>\
smiling) Aan men, .nd ihe>- do,-’ A second explanation is that women mav have morv
innate ab.bnjo read others and present ilieir emoiion, than do Thirdlv,
uxmHm ouy have a greater need for social approval and, thus, a higher pro,wn.sitv to
mow |xjsit I VC emotions such as happiness, o r- i

EXHIBIT 3*3 Emotion Continuum

 Chapter 3 Pcrsi>nd»ty and EmoGcjm

KoHUkMis and National Culture

C^uJiunl n<M*iiis in the U nited Si»u*s dkiatc that cniph»yee^ in seivice organizanons
sKudJ Miiilc and an friendly when interacting widi cusunneniz But this norm doesn’t
epph* wnrIJu ide. In Israel, •amling by supennarkvl eu^iien* is seen as a >ign of inevperi*
eftce. sn caJiiers are encouraged to look somlier.-^ In Moslem cultures, stiiilbg is fre-
quently taken as a sign of sextial attraction, so women are socializetI not to sinile at nwn.^
I'he above examples ilhtstrate the need to consider cultural factors as influeac-
ing what is or isn’t considered cinotionally appropriate. VVTiai's acceptable in one cul-
ture iiwv seem exircniclv unusual or even dysfunction a I in aniither. ,^d cultures differ
in terms of the iiiicrpretaoo:i dwy gn e to emotions.
Inhere lends to l»e high agreement on what cmnrions mean C’lffewt cultures bur
not Ixwrrn. For instance, one study asked Americans to match f^ial expressions with
the sir universal cmoboiis. I’he range of agreemenr was l)crwecn H6 and 98 percent.
V^Tien a group of Japanese were given rhe same task, they correctly labeled cmly sur-
prise (with 97 percent agrecTncni). On the other five emotions, their accuracy ranged
from only •“ to 70 percent. Tn addition, studies indicate that some cultures lack words
for such standard emotions o-s aHX'kly, or gt/ih. I'ahidans, as a case in point,
don't have a word directly equivalent ro ?ia<lness. V^Qicn Tahitians arc sud, their peers
typically attribute iheir state to a physical illness.

OB Applicntions

V\*e cuucludc our discussion of emotions by considering (heir appliesQon to several

topics in OR. In this .section, we assess how an understanding of entouons can improve
our abilin to explain and jjredivt the selection process in organixadons, decision mak'
ing, morivariem, leadership, interpersonal conflict, and deviant workplace behaviors.
.Ability and Selection People who know dicir own emotions and are giHid at read-
ing others* tmotions may be more effective in their jobs. Thar, in essence, is the
theme underlying recent studies on intelligence}^
Emutiona] inteliigence {FT) refersi to an assortment of nuncognitivc skills,
ca pa bill tics, and competencies th ar influence a jxrson’s abibty' to succeed in coping
with enrironmenul demands and pressures. It’s composed ol fitr dimensions:

Se^'-aiTtfrene^. The ability* to he aware of what you’re feeling.

The abilitv to manage ime’s own emorions and impulscs.
Solf-memvrim. I'hc ability to persist in the ^cc of setbacks and failures.
Empathy. The ability* to sense how others are feeling.
Saaai rkilis. The ability to handle the emotions of others.

Several studies suggest that El may play an ivn|>orunt role in job performance.
For inMance. one stuily liMiked ar rhe characwmiics of Bell I,ah engineers who were
rated as stars by their peers, I’he vienrisw concluded that stars were better at relating
to i<her%. I hat is, it MOS KI. not jvadexiuc IQ, that characterized high performers. A
veccod vrudy of Air Force recruiters generated similar findings. T»j>-performing
texTuters exhibited high levels of FI. Using these findings, die Air Force revamped its
vrfceikm enteria. .A follow-up mvesnganon found that future hires who lud high-KI
***•* T.6 rimes more successful than those who didn't.
The anplntHJosi from the initial evidence on El as that eni|)l(nvrs shrmld consider
«»a m aekvodo, cspeciaJly in i<4w that demand a high of auaal imeracriofi.
« Partll 1T«lnd.v,.W,n«hcOrK.ni«u..n nal .ppn«ch« to the nndy of
Dcn«(>n Making As you’ll rationality They have Awnplayu.l,
dedsMin making in <)rgar«MtKJn>h.n<!v p fr|,^cradon», <i<>uln», «n<l Mimi lar

hean" 1 well as “the hea^i-’ People use emotions as well as raUonal wd .nnnuve
Xsses in making decisiotxs. Failure to incorporate emooons into the study of deca-
Son processes will result in an incomplete (and ollen inaccurate) new of the process.
Modvarion We ll discuss uiutjvatlon in Chapter*^ 4 and 5. At this point, wc want
ourdy to inrmducc idea that, like deasion inabng, the dominant approaches to
the htwly of moavanon reflect an uverrationalized view of individuals.
Moavation Aeorics basically propose that individuals “are motivated to the extent
diac their l>ehanor is expected to lead to desired outcomes. The image ts dial of rational
exchange; the cmphivee essentially trades eftbri for pay, security, promotions, and so
fordi/’^But people aren’t cold, unfeeling m.ichines. Their perceptions and cakulurinns
of situations are lilled with emodonat content (hat significandy influences h(M much
effort they exert. Aloreover, people w ho are highly motivated in dieir jobs arc eniod<m-
ally committed. People who ue engaged in their wtjrk “fieoKne physically', cognidvel),
and cmobonalh' immersed in the expcnence of activity, in the pursuit of a goal.”’ '
Are all people cinodonally engaged in their wx>rk? Nn! But many are. And if we
focus only on radonal calculations of inducements and cemtributions, we ftil co be able
to ejqjbin l)eha\iors such as the individual who forgets to have dinner and works late
into the night, lust in the thrill of her work?^

Leadership The ability to lead others is a hindaniental quality sought b)- organiza-
nons. We’ll discuss the ioi>ic of leadership, in deiwh, in Chapter 10, Here, however,
we bnefly introduce how cmouons can be an integral pan of leadership
Effr^e leaders aJtnust all rely on the expressiou of feelings to help convev their
messages In fact the expression of emouons in speeches is often die mocal element
rTT h or «)«dng a leader’s message. “When leaders fed
’ active, they may be more likely to energize tlieir subordi-
nates and convey a sense of ethcacy. competence, optimism, and enjoyment ”

(.orporate execuoves know that cmoiiiKial content is^i.i.Il i

buy into their vision of their comnunyk h,t.,r,. / if employees arc to
are offered, especially w hen they new visioitf
cult to accept. So when effective leaders warn '*
rely on “die evocation, framing, and mobdizatir, significant changes, they
mms and linking them to an appealing vi«on lead " * ’’x arousing eiw-
managers and employees alike will accept change mvreasc the likelihiMsd that
latctpersofiAl Conflict Kew tMues are mure *
tuple of uiterpcr»onal conflict. KS'henevcr vonflicu emcxions dun rhe
emuaofts are also surfacing. A manajter’s sutress certain ihJt
w ofcm lane^y due to his or her ability to idamA, resrdve conflicts, in Uvx
enumunal elements m the am-
 Chapter 3 Per&ucaJity and Emotions
flirt and n> pvt thv vonOieting parties tn work through their einadons And the tnan-
ager who ipiorvs the em oh on al elements in conflicts, focusing singularly on rational
and taxk-hxuseil concerns, is unlikely to be very effective in resolving those conflicts.
Deviant Workplace Behaviors Negative emudons can lead to a number of deviant
workplace Ixhanon*.
.An\*onc who has spent much time in an organization rcalizet^ that people often
engage in voluntary actions that violate established norms aJld that threaten the
organization, its members, or both, ’fhese actions are called employee deviancc.^^
'I "hey fall into categories such as pnxIucKon (e.g., leaving early, in tc mi on ally working
slowly); property (e-g » stealing, sabotage); political (e,g., gossiping blaming co-
workers): and personal aggression (e.g., sexual harassment, verbal abuse). Many of
these deviant behaviors can be traced to negative emotions.
For wutance, envy is an emotion that txturs when you resent someone for hav-
ing sontething that you don’t, and which you strongly desire. It can lead to inalicicnis
deviant behaviors. Envy, for example, has been found to be associated with hostilitv,
“backstabbing” and other forms of political behavior, negatively distorting others’
successes, and posirivelv distorting one’s own accomplishments.'^

IMPLICATIONS FOR MANAGERS

Personality
1 he major value of a manager’s understanding person a lit)’ differences probably
lies in selecdon. You are likely to have high er-performing and more-satisfied
emplw'ces if consideration is given to matching personality ttpes with compati-
ble jobs. In additic^i, there may be other benefits. For instance, managers can
expect that individuals with an external locus of control may be Jess satisfied with
their jobs than internals and al«) chat they may be less willing ro accept responsi-
bility for their actions.

Emotions
Emotions arc a natural part of an individual’s make-up. V^Tiere managers often
cn is in ignoring the emotional elements in organizational behanor and assessing
individual behavior as if it were completely rational. As one consultant aptly put
It, “You can’t divorce emotions from the workplace because yon can’t divorce
emotions from people.Managers who understand die role of emotions will
significantly improve their ability to explain and predit t individual behavior.
Do emotions affect job fwrformance? Yes. I’hcy can performance,
«speaalJy negative emotions. That’s probably why organizations, for the most
part, tn to keep emotions out of the workplace. Bur emotions can also enhance
perfonnance. Hou.* Two way's.*- First, emotions can increase arousal levels, thus
Mng as modvatoni to higher pcrfonnance. Second, emotional labor recognizes
<h« feelrngb can be part of a job’s required behasior. So. for instance, the ability
ft* cflntivcty nunage emouons in leadership and sales positions may be critical to
in those postuons.
•.1
> *•<
1
CHAPTER 4 ___________________________________

Basic Motivation
Concepts
After resding this chapter, you should be able to

1. Outline the basic motivation process

Describe Maslow s hierarchy of needs theory

wN

Contrast Theory X end Theory Y

4. Differentiate motivators from hygiene factors

5. list The characteristics that high achievers prefer in a job
6. Surnmanw the types of goals that increase performance
7. Contrast reinforcement and goal-setting drearies
i. Explain epurty theory
9. Clarify the key relationships In expectancy theory

eferring to their son or daughrer oarrnr^ k.„., ■. • r

“‘’”7years char tr has
R achieved the sums of a cliche' "1lc/«Es k
him^K-rself^ Few of us .orkro, or Xjhut jus, won’t apply
to dur. riiitrnas tdisoii underxx>red his K-l’i -f ' ol us will admit
achievij,g success when he said that “Ecnin. k r. ‘"'P-irtance of hard wort fi»
persptration.” The fact is that some woX “^P'ration and W percent
'nJividuals of lesser abilkv c "•“« than oth-
pfted counterpam. For this reason, an individual52rf tl.dr more
depjmds not only on abdity but on mtmvacion as Lp -«herwnse
explan^ons of why some penpk exert more clW, .2^ • fmsiden vanous
neat chapter, we II budd on these expiana.ions tTd^^i ’•*" othc«. In the
non techniques. a vark-ty of apidied nwmva-
 rz

Chapter 4 nasic Moriration CoueepH

O
\5’HAT IS MOTIVATION ?
We nught dcGne inohvation in terms uf some outward behavuir. People who are
mori\*atcd exert a greater effurt to perform than chose ^vho are nut motivated. Bur
such a definition is relative and Iclls us little. A more descriptive but less su bate reive
definition would say that motivation is the willingness to do something and is condi-
tioned by this aeaonk ability* to satisfy some need for the individual. A need, in oui
icnninology, means a phv'siological or psychological deficiency that makes certain
outcomes appear attractive. This motivabon process can IK* seen in Exhibit 4-1.
unsatisfied need creates tension, wliidi sH mu I arcs drives witliin the iudivid’
lul. These drives generate a search co find parocular goals that, if anained, will satisfy
the need and lead to the reduction of tension.
.Motivated einployees are in a state ut tension. In order to relieve this tension,
they engage in acoxity. The greater the tension, the more activity will be needed to
bruig utout relief l'herefr>re, when we see employees working hard at some acrivdty,
wc can conclude they are driv'en by a desire to achieve some goal they value.
EARIY THEORIES Oh MOTIVATION

A
3
*
The decade of the 1950s was a fruiTful period in the development ot motivation eon-
«pb Three specific theorie.^ were formulated during diis period, which, chough now
heanly attacked and their validity called into question, are probably st JI the best-
known explanations lor employee morivanon: the hierarchy of needs theory, Theory
X and The Of)’ Y, and the two-ft ctor theory. VVe have aiitce developed more vah<l
explanations of motivation, but you should know these early theories for at least two
reasons: (I) diev repre.scnt a foiin clarion from w’hich con temporary theories hav’e
grown, and (2) practicing managers regularly use these rheoiies and their temiinolo’
gies in explaining employee motivation.

Hierarchy of Needs Theory

lt\ probably safe to say that the be st-known apprcjach to mouvacion is Abvahaoi
Maslow's hierarchy of needs theory.’ He hypothesized that witliin every hinnan
beii^ there oasis a hierarchy of five needs. 'I hese are:

1 rtfedi-. Inchide hunger, th5nt, «liekcr. sex. and other bodily needs
. nttdf'. Include sccuritv and procccnon frnni physacal aud emotional harm
2 SoW n/ftif; Include aftection, a sense of beionging. acceptance, and ^enddnp
. nttdf. Include intenuJ betors such a:» self-rc-^pecq autonomy^ and achieve-
1 cuent and external fatxurs ^ch a» vuru», recognitinn, and anentiau
.
Ttw lndi»*<hnl« •>>« ,^mc what une '« capaWc o* HciorninK;

incliMlr.' (ftowTh. ach'c' H Satisfied, the west n««d

.As eM-h of the« ^;i"'X7n^iidual moves up the hierarchy. Fnm the
dommaiK. In would say that, although no need .s ever
standpoint of motivation, JJ ]„j,„er motivates.
fully Ki-flf fied, □ <uhsmually satisficJ orders. Physiological and
.,ep«..cd .he five need, »«" 1’^' riMab,
..fe.,- need. .er. de^^beJ » “d- «re different.,ed ,.„ ,he
“'" ""S'l^lii.SrZjT.''.e iriefied fi..en,.Uy. .h™, lo.er-,.rder „eej,

e!™« =» pe™..,* ewluy^l -k.-'-bl >»e

their lower* order needs subs tan n ally met. ..i

M«loWs M.ed theory has tecaved wide rowgniuun, paroc^ly aiuuiig practiv-
in. manaiters. This acceptance can hr nrrributed to the logic and ease with which the
th^^n IS intuilivelv understood. Unlominately, however, research does not generally
validate the rheon' For inswnre, hnle support is found for the prcdiclion that need
structures arc organized along the diiiiensions p^|XRcd by Misiow or rhe prediction
that the subsljiitiil satisfaction of a given need leads to the aedvadon of the next higher
need. So. although the need hierai chy is wvli known and tindoubiedly used by many
managers JS J guide toward inotivaring their eiupioycc.s, little substantive evidence
cxisB to indicate duit fiillowing the theory will lead tn a more motivated workforce.

EXHniT 4-2 Maslow's Hierarchy of Needs

r~ V
1♦
*4
r♦♦4

SOGHJ

I
/
1
 Chapter 4 Hasic Mntiv»tian Oxitepxs 45

niiciiry’ X and J hwiry Y

Piiugbs .MK (regnr propivsed tw't> di.stitict views of human heings! one basically nega-
tive. hlnled Theory’ X, and the other basically positive, labeled Theory Y.^ .After
viewing the way managers dealt with employees, McGregtjr wmeluded rbar a man-
iqterk view of the nature of human beings is based on a certain grouping of assump-
tiuiis ami that he or she tcn<k to mold his or her behavior toward employees accord-
ing u» those assumptions.
Under Theory X, four assumptions arc held by the manager:

1. Employe us inherenlly ibsiikc work anc, whenever possible, will attempt ro avoid ii.
2. Since employees dislike work, they must bu courcud, uontroUud, or threatened with
punishnient to achieve desired gfwls.
Employees will avoid rcsporivibihties and scuk iorinid direction whenever possible.
Most workers place security above all ocher factors associated with work and will dis-
play little ambition.

Under Theory Y, four contrasting assumptions are held by die manager:

L Employees can view work as being as natural as rest or

o
■
2» People will exercise self- dir ecu on and selhconcrol it they are committed co the
obKCtivcs.
'fbe average person cm learn co accept, even seek, responsibility'.
4. The ability to make innovative decisions is widely dispersed chroughouT the popula-
tion and IS not nccessArilv rhe sole province of those in management positions.

What are the motivatiunul iin plica dons if you accept -McGregor's analysis?
The answer is best eitpressed in the fraTnewurk presented by Alaslow. Theory' X
assumes that lower-order needs dominate indindiials. Theory Y assumes that
*
higher-order nced.s dominate individuals. McGregor, himself, held to the belief
that Theory Y assumptions were more valid than Theory'X. Therefore, he pro-
posed ideas such as piirticipation in decision making, responsible «nd challenging
jobs, and good group relations as approaches chat would maximize an employee’s
job motivation.
Unfortunately; there is no evidence to confirm that eitlier set of assumptions is
valid or that accepting Theory Y assumptions and altering ones actions accordingly
will increase workers’ inorivaDon. As will become evident larer, either Theory’ X or
Theon V assumptions may be appropriate in a parbcular situation.

Two-Factor Thwry

I he two-factor theory (suinedmes also called mofnation-hygiene ikeoty) wJiv pro-

pj$ed by psychologisi Kredcrick Herxberg.^ In die belief that an i nd ivi duals relation
lo work is basic and that one^ attitude toward work can verv well determine success or
tailun.*. Herzberg investigated the question, “What d«> pciiple want from their iobs?”
lie asked people todescril>€, in detail, situations in which they felt cxceprionally good
«< had about their jobs. These responses were then tabulated and categorized.
From the c'acegonzed responses, Herzberg concluded that the replies people
gave when they fck gxx^d about their jobs were significantly different from the
replies given when dicy felt bad. As seen in Exhibit 4-3. certain characceristivs tend
to be comiatcfitly related to job satis faction and uthvrs to job dissatisfartiim.
4* FBrtN The IwtmdMl in the OrpniMtion
Herzberg's Two-Facior Theory
EXHIBIT 4-3

MottvaCor focton t/ha

effect
Job tttbbetton J :
job dbsatxbctjon
• Promotional opporomicks
• of Miptrvision
• Opportuniiies for
• Pay
persorkal
" Corrtp^^ poNcfO • Recognrtlon
• Phytol working conditions
■ Responsibility
• ft^tions with others
• Achievement
' I' i

High Job OissAtisfaction lob Satisfaction High

o
Z

Soarce. Based (« f Henber^. ‘Oe Mor^ True: Hoi» Do itej Voirssate FPployBSS’’' Maaortf
^ustfiess «*«».
JSflya ry^Hbruaiy 196&. D. S 7.
I
Intrinsic factors^ such 3s advancentenr, recognition, responsibility, and achieve-
ment seem to be related to job satisfaction. Respondents M'ho fell good about their
work tended TO attribute these factors to themselves. On the other hand, djsxiuis-
fied rcsfxjndenu rended to cite extrinsic factors^ such as supervision, pay, company
policies, and working conditions.
rhe data suggest, said Herzberg, that the opp<»site of sausfaction is not dis^atis-
faction, as was traditionally hclies’ed. Removing dissatisfying charactcrisdo. from J job
Joes not necessarily make the job sansfynng. Herzberg proposed that his findings indi-
cated the existence of a duiil continuum; The opposite of •‘Satisfaction” is ‘’\'o
Saiisfecrion," and the opposite of “Dissatisfaction” is “No Dtssausfactinn.’
According tn Herzberg, the factors leading lo |ab satisfaction are separate and
distinct from Aosc that lead to job diKsatisfaction. I hcrefore, managers who seek to
eliminate factors that ean create job dissadsfacdon may bring about peace but not nec-
csianly motivadon. They will be placating 6cir workforce rather than motivating
dwm. As a result, conditions surrounding the job, such as quality of supervision, pav.
company poLcio, jAy^cal working conditions, relations with others, and job securin
w ere charaewnted by Herzberg as hygiene factors. VVTien they’re adequate, peopk
W.1I noHK-dt«3^ficd; neither «ilJ they be satisfied. If we want to ,„nrh-ate pe.Jie nn
their lobs. Herxberg supgeswd emphasizing factors associated with the work itself <,r
^outcomes directly derive.! fr.«n it. such as promoti.mal t^iportunities. opptmun.rie-s
tor personal growth rt^gmuon. responsiWity. and achievement. I-hcse ar^e char-
acienst3c*s Out pec^le find invinMCAlly rewarding

1. rhe pnit«lure Out Hcrebcrg used is binited by iu ixx

pl., «n. ..a „ „„
fl

evtnnsc eiivminmenc. ' ^wtne rauure un

1. The ichabihh of Herihergs mvthodofogv u Qu«tH>hiiW> Da— t.
inrerpretanons. »o they may conumiime the finXm u
diffcfenrfy mterpreirtK lirndv

I
 Chapter 4 Bask Moth' aonConcepCB
ovci-all measure of aiosfiicdon was uulised. A person may dislike part of
his or
bet job yer soil find the job acceptable.
4, The I heor> i.< inconsisw nt with previ ous research. ’ I'he two-tactor I h cn ry
iHerzberg
gnorn si assumed
t- a rehicioiwhip between baa^facrion and produciiviry» but
tiaDonal variables.
his
research medsodobgs' looked only ui saiishciion, not at producdnry. To make
such
research rekvant, one must assume a strong relaconship between saGsfat;h«i
Regardless cfcriticisms, Herzberg’s thcon has been widely popularized, and fpw
and
Hianegers arc u nth mi liar with his rccomnicndjtiims. As a case in point, much of rhe
producaviiy.
inicial enthusiasm for vertically expanding jobs to alUw workers greater responsibility
in planning and conuoUbg their work (which wc discuss in ( bapter 14) can probably
be attributed largely to I lerzhergV findings and recommuidatiuns.

QONTjE-MPORARY'niEQRIES OF MQTIVATIQN ,
The previous thei»ries are well known but, unlorliuiucelv, have not held up well under
dos.* exainhuTion. -"Ml is not lost, however. Contemporary dicories have a reasonable
degree of valid supporting diM urncnUition. 7'hc following Theories represent rhe cur-
rent state of the an in explaining employee motivation.

McClelland s Theory of Needs

David iVicClcllanct and others have proposed three major relev'ant motives or needs in
the workplace. Wc call this McClelland’s Theory of Need.s^:

1. The need for achievement (nAch)—The drive to excel, to acbiCT’e in relation tc

a set of suudartU, to strive lo succeed
2. The need for power (nPow’)—The need to make others behave in a way thdy
would not have oehaved oclicrwbtf
3. The need for affiliation (oAff)—desire for friendly and duse inicrpcrsonal
rclariein^hips

Some |)eupk ha\'e a compeliuig drive to succeed, but the)’ are striving for per-
sonal achie^eiuent rather chan the rewards of success. They have a desire to do some-
thing better or mo re efficiently than it has been done before. This drive is the need for
achievement. From research into the need for achievement, McClelland found tlia(
high achievers differenoacc themselves from others by their desire to do things better.
They seek skuadons m which they can attain personal rv.sponsibiliiy tor finding solu-
tions lu problems, receive rapid and unambiguous feedback uii their performance, and
set moderately chalivngmg goals. Tlicy prefer working at a challenging problem and
Mcqfong the iiersonal rcs(Kinsibility for succew or failure rather than lea\4ng rhe oui-
cixnc to chance or the actions of others.
High achievers perform best when they perceive their prohabilicy ot 5»c-
ccstf ax being 0.5, that is, when they estimate that they have a 50-50 chance ot
succcas. 'I hey dislike gambling with high odds (high probability of lailure) because
succew io such a situation would lie more a matter of luck than of ability, Jiul they
get no acHievuitcnt satisfaetion from happensrance success. Similarly, they dislike
low odds (high probability of 5uccs*ss) because there is no challenge to their ddlb-
MU ’ITielndividiBllin theOrganizalit’n
•ITiey like lu sei realistic hui difficult " J,, sucees* or failure, there is the
tic. When there is ar appruximatdy eq«9 ir. onipi'^hiiient and satisfaction
optim.l opportunity to experience feel.np of ncu>. P

from chtir eHorts. . ,. . .mr^L't hi be influential, and to c<jn-

The need for power is die re to have an, influence.ivxrinh-

tml odiers. Indi^nJuaU liigh in z/PfiTr enpy eing j concerned
e«, prefer unnpeotive ond status-oncnted1 s.mn.
with gaining prestige and influence over others j has received the
fc„ ...e'ntT ,frcscrch.™. Individual ».tl, a l..(h ,a4(/ s.nve „r fnendsb.p, prafa
““”«a,i...v rarhe- than cn.pandva and das.re „la,„.„»h,pa n.v.dv.ng
J hiirh de ercc of mutual understanding. < ... .
Horde vou find out if someone is. tor instance, a highJich.evcrr All three
motives are nTic^Hy -ncasured tiirough a projective test in which subjects respond to
a set of pictures. Each picture is briefly shown to the sub)cct and then he or she wntes
a story based on the picture. For example, the picture may show a man sitting at a
desk He is inoking pensively al a photograph of a woman and two children th ar SITS at
rhe corner of the desk. The subject will then be a.sked to write a ston' deMTihing what
is going on, what preceded this situation, what will happen in the future, and the like.
Ihe stories hecotne, in effect, projective tests that measure unconscious motives. Each
sior}' is scored, and rhe subject is rated on each of the three motives.
An wtensive amount of research indicates that some reasonably well supported
predictions can Iw made on the basis of the relationship herwecn achievement need
and job pcrfoniiancc, fhough less research has been done on power and affiliation
needs, there are uinsistent findings hi diose areas too. First, individuals with a high
need to achieve prefer job si ma dons with personal responsibility, feedback, and an
intermediate degree of risk. VVlien these characteristics are prevalent^ high achiev’crs
will be strongly motivated. The evidence consistently demonstrates, for imstance, that
high achievers are suLx*cj.sful in entrepreneurial acdricics such as ninning their own
business, managing a self-contained unii within a large organization, and many sales
positions. Second, a high need to achieve Joes not necessarilv lead to being a good
meager, especially in large orgaiiizanons. High nAch salespeople do not nece&sanly
make g<xKl sales managers, and the good manager in a large organization does not
typically havx a high need to achieve. Third, the needs for affiliarion and power tend
to be closely related to managerial success. The best managers are high in the need for
povser and low in their need for affiliation. Last, employees have been succcssfullv
trained to stimulate their achicveracQt need. If ihe job calls for a high achiever, man^
ageraent can select a person wSth a high nAch or develop their own candidate thmueh
achievement traimug.

GoaUSeTting Theory

.■iih . conaderjbk igree of ranfidc,™'",?™"' ""I* "» ™

'of -do 1 oS"

•/J
 •• fl9
Th. indi^dual in the O.rani«don

Thc»- hke t« «t realistic bin ” *® '

de. When there is an approximately eq actoinplishniciit an.I saiisfactinn
nprimal opportunity «n e.x,M.nence teeimjp. ol |
fi-oni Their efforrs. ........ in.oai l, lo he inflncnrial, and to con-
The ne«l for power is the desire to influence over oth-
mil ixbci-s. Iiidividuals Itigh in » ‘iw eri|<n *' - 'j| 1,^ moi e cotuxmed
en. prefer compenove and s.an.s-onented ,x.Tron«anee.

n of raOKhm. with . high «,4yj strive .„■ fnendshtp, prefer

XrX sKurtionv rather th.,, eop.pet.tive ..„es, anti desire rel.t.onsh.ps ,„volv,„g
a hich decree of mutual nnderstanding. . .
Ilow^fo WU find out if someone is for instance, a high achieterr All diree
motives are npically measured through a proiective test in which sub,eels respond to
a set of picnircs. Each pknirc is briefly hhown to the subject and iJien he or she writes
a siorv based on the picture. For example, riie picture may show a nun sitting at a
desk He is looking pensivelv at i photograph of a woman and two children that sits at
the wraer of the desk. 'I*hc subject will then be asked lo write a storj’ describing what
is going on, what preceded this situation, w hat will happen in die future, and die like,
The stones become, in effect, projective tests that measure unconscious inouves. Each
story is scored, and the subject is rated on each of the three motives.
An extensive amount of research indk'atcs that <omc reasonably well suppexted
predictions can lie made on the basis of the rclatinnship herween acluevcment need
and job perfbnnanee. Though less research has been done on power and affiJiadon
needs, there are consistent findings in those areas too. First, individuals with a high
need to achieve prefer job sima dons with personal resj-Xinsibilit)’, feedback, and an
intermediate degree of risk. VVTien these charactcristies are prevalent, high achievers
unll be Sttongiy iiiocivared. I’he evidence consistently deinunstratcs, for instance, that
high achievers are successful in entrepreneurial activities such as running their own
business, managing a self-coutiuned unit wiihin a large organization, and nianv sales
positions. Second, a high need to achieve does not necessarily lead to bcin? a i?(Mkl
manager, especially in large orginiizations High /rA salespeople do not necessarily
make gpod .sale^> managers and the good manager in a large organization docs not
ty-prcally have a high need TO achieve. Third, the needs for affiliarion and power tend
to be closely related to managerial success. The best managers arc high in the need for
power and low ,n their need for affiliation. Last, employees have l>ceii successRillv
trained to M.intJatc their aehievciucnt need. If the job calls for a high achiever, man-
s'“x rnlxr™” "* ’ " ‘'"‘-'"I’ "™ “’“I"*’"

Goal-Setting Theory

with a considerahle degree of^onfid^c^re ‘nonvation. IVe can say,

nunce and that difficult goals when ar - ' g™ls lead to increased {terhir-
pak’ ' tepted, result in higher perfonnance than easy

1-1 of „UT„, ,h.„ . g.„-

If y* ««sl. 1 he speciRcity of the goal icself acts as an iatc^
 Chapter 4 Basic Motivation
stimulus. Fur instance, when a trucker eommirs to making IH ruund-tnp hauls
Ixnwern Haiti more and Wtuhiugton, D.<L, each week, this intention gives him a spe-
ci tic tihjcc tn c to reach for. We can say that, all things being equal, the tracker with a
specitic goal will outperform his counterpart who operates either with no goals or
widi the gcheraliice<l goal of “do your best."
If fecTora such as abihry and acceptance of the goals are held constant wc can
ahn state that the more diHlculc the goals, the higher the level of performance.
11 owe ver, it’s logioi to assume that easier goals arc more likely tn IK; accepted. But
rinev an cinpioyec accepts a hard (ask. he or she will exert a high level of effort until
the goal is achieved, lowered, or abandoned.
If employees have rhe opportunity’ to participate in the setting of their own
goals, will (liey’ try harder? Ihe evidence is mixed regarding the su|x;nority of partic-
i|>ation over assigned goals. In some cases, goals that have been set participahvely have
elicited superior performance; in other cases, individuals have performed best when
assigned goals by their boss. A mafor advantage of parttcipatinn may be in increasing
accTjwancc of the g<jal itself as a desirable one to work tow ard. As we noted earlier,
resistance is greatest when goals arc difficult. People who panicipate in goal setting
are more likely to accept even a difficult goal than one that is arbitrarily assigned to
them, becau.se individuals are more committed to choices in which they have a voice,
rhus, although participative goals may have no superiority over assigned goals when
acceptance is taken as a given, parricipation docs increase the probability that more
difficult goals will be agreed to and acted upon.
Studies testing goal-setting theory* have demonsi rated (he superiority of specific
and challenging goals as motivating forces. Although we can't conclude that hanng
employees parricipate in the gr>al-set(ing process is desirable, participation is
probably preferable t<i assignment when you expect resistance to difficult challenges.
As an overall conclusion, therefore, we have significant evidence that intentions—as
ardculaced in terms of goals—arc a potent motivating force.
rhe observant reader may have noted what appears to be a contradiction
between the findings on achievement moovation and those on goal setting. Is it a con-
tradiction that achiev'ement niouvation is sliiiiulatcd by moderately challenging goals,
w hile gtul-setong theory says luotivarion is maximized by difficult goals? The answer
is no. for tu'o reasons. First, goal-setting theory deals with people in general. The con-
clusions on achievement motivation arc based only on people who have a high nAcb^
and probably less than 10 to 20 percent of any country's workforce are naturally high
achitvers. So difficult goals arc still recommended for the majority of workers.
Second, goal selling’s conclasions apply to those who accept, and are committed to,
the goals. Difficult goals wiH lead to higher performance only if they are accepted.

Reinforcement Theory
A crjunterpoint lo goal-setdng theory' is reinforcement tlxeory. I'hc former is a cogni-
tive approach, proposing that an indinduars purposes direct his or her acdons. In
remfcircement theory we have a lichaviorisdc approach, w hich argues that reinforce-
ment condiiions behavior. The two theories are clearly at odds philosophically.
Rd II h) arm ent theorisLs sec behavior xs environmentally caused; internal cognitive
v^enis arc not matters for lunccm. VVTiat conrrols behavior arc rcinforcers—any con-
sequences that, w hen iminediateh following a response, increase the prohahdity that
the hcbavior will Ixe rex^eaced.
 ►
■n- tndie OffaBh-t"’
J. the inner Mate of «*»« indhidoal and oMKriiirMM
Reinfimwnent or she takes -Bne actkrtt. Becatne n docart
«dely on »har ha^M n» a n-.t, strictly speaking, a therxy »f mm*-
„,„cem .tself-th -''‘■r'"'‘-rrJ±r^sofe.,n«r. »h lx*havK<^ and
„d,„. Bm .. d.«- I-o'd' ’ l“" "XVd in ^-usM.,™ .d nK„,-,n™,,
it^ for that fc-aMtn j of effect (Iwhavior K a funtt>«>n »1 its ame-
Chapter 2 ^onsequ condition Uhav.or and help
qoenccsl and 'Hie law of :;if«xt anti the concept of remfcMccmenr also
eiplain how people , rescaixh inilicates that people will eaen
'"ft-T 7tTst "thti are"^mf<-n:^d than on tasks that are not.'- Rcinf.-rement u
an imp.run. -nflnenee on work behasi-r UW people their
and the amount of effort they allocate to various Wsks are affewd by the aw-
qoences of their behavior. Bin reinforcement is not the sin^e explamnon for drffer-
2nces in cmplovee motnarion. (ioals. for instance, have an impact on moovaoon; so,
too. do levels of achievement motivaaon, jncquiUcs tn rewards, and exjiectanons.

Equity Theory
Employees don't work in a vacuum. They make tT(xn|wrison<u If scmcooc offered yog
575,000 a year for your first jub on gradiutinn from college, you’d probably grab ac
the offer and report to work enthused and certainly sausfied with your jray. flow
would you react, however, if vou found out a month or so into die job that a co*
worker—anothtr recent graduate, your age. with cotn|>arable grades from a compara*
bk cullege—w as getting S80,0(W a year? You'd probabb be upscti Even dtough, in
absolute terms, 575,000 is a lot of money for a new graduate tu make (and you kiKTW
it!), that suddenly isn't the issue. The issue now centers around relative rewards and
wdiai yon believe is hir. There is ample evidence fur us to conclude thai empknees
compare their own |(>b inputs and outcomes with those of others and that inequities
can influence the degree of effort that employees exert."
Equity theory sa^^s that employxcs weigh what they put into a job situation
(inpuO against w hat they’ get from it (outcome) and then compare ±eir inpucoutcoine
ratio with the inpurouTComc ratio of relevant others. If they* perceive their ratio to be
equal to that of the relevant others with whom they compare themselves, a state of
equity is said to exisL They^ feel that their situation is fair, that justice pre-ails. If the
ratios are unequal, inequity exists: chat is. the employees rend to view themsefres as
underrewarded or overrew^rded UTien inequities occur, employees will attempt to
correct diem.

The refvrenr that employees choose to cotnpare tlicmsek-cs against is an impor-

tant t^riable in c<|inry theory The three rekrent categories have l>cen classified as
“odwr/ “syMcm/' and "si lf ” 'the -other" eitegory inclu<ks other individiuls with
sunuar M>bs in the same orgamzauun and also includes friends, neighbors or prufes-
swnal associates. On die basis of mformaiion that employees receive through wixd of
mouth, newspui>ers. and magazines, on such i-ssues is executive salaries or a recent
unit in central t, employees can coiuparc their pav w-ith that of others
The “^ij-siem" aiegory consider, organizational pay jwl.cies and prtKxdttres »
well as the adiiuDistratJon of this s\>rcm. Ii considers organization-wide nwv mJieies
both implied and expliat. Precedents set hy the organization m terms of J
pay would l)e a major determinant in this category.
 Chapter 4 Bailc Motivition Co
4
The ‘leir' category refers tu fn|iut;<,Htciirnc rnti(« thst are unique to die individ-
ual. This caregtiry is influenced by friteri.i such as 1319 family commitments.
Tile choic e of a panic ular sei of i cfcrenM is rchicil to the information avail-
able alioiit icierciits as well .is lo their perceived relevance, tk|iiity theory purports
that, when ciii|>l..yccs cinisioo an iiie.|iiiiy, they may make one or more of five
chincc.*$
: Distort cither their own or orheis' in inns or ouiconu-s
L 2. in soiiu w«v as h> induce ndwr?, u» vhjtngc tbvir inputs or cnncomes
Hdwvc in Munc w.iy so as in tiinngv thdr uwn inputs ar outcomes
4. .1 iliHcicni canipiirisiin rckTem
Quit their iiil»

Equii) theory retogiiir.CsS: thur individuals are concerned not only with the
absolute amount of rcwjinls they receive tor their effnrt:; but also with tlie relationship
of that amount Cu what othei s receive. Inputs such as effort expenenccy educaiiony
and cimipt’tenie are coinpnrcd with outcomes such as salary levels, raises, recognition^
and other fiKtors. When people |Krceive an imbalance in their inpurouteome ratio
relative to others, tension is created. ‘ITiis tension provides die basis for motivation, as
people strive for what they perceive as equity’ and fairness.
Specifically, the theory’ establishes four proposi duns relating to inequitable pay:

L puyf/ffTtf hy fimv, ewpiijycei wiii produce wwre fhan cquifMy paid

rmpioyffw I lourJy nnd salaried employees will generate a high quantity or quality
of production in order to increase the input side of the ratio ind brina alM>ut
equity.
2. /wywewz by /jriafniry pf pitifi/tetion, ovtncuwkd CMpbtyees proihice hut
bigher-^uah'Ty unify rha» equitably (hitd e^iplnyfc^. Indivriluals paid on a pieex-rate basis
will increase their efforr to achieve equitv. which can cesuJi in greater quality or
quantiIV. Increases in quantity however, will only increise inequity, since every unit
produced results in further ovorpaymeni. 'I'hercfcre, effort is directed toward
increasing quality rather dun quanuty.
3. Gizvn ptfyfirfff by timf, tMdfrrruHirM frvpiiiveas wiU produff /rtf nr a poorer guaiity of otit»
put. EfR»rt will be decreased, and the result will be lower productivity or poorer qual-
ity of output than that produced by equitably paid einployees-
4. Giri'W ^z/ywenf by ofpivdncf/oa, ftndetTewarded ewphyees wiH produce a iargf
jniffibiT of units tn iftwpntiscm with erjuttab/f pit id ewphyecf. Employees
on piece-rate pay plans can bring about equity l>ccause trading off quality of out-
put for quantity will result in an increase in rewards with little or no increase in
Contributions.

A review of the research tends co confirm the equity thesis consistently:

Employee niotivation influenced significantly by relative rewards as well as by
absolute rewards. WTien employees perceive inequity, they M ill act to correct the sini-
acsyn. Hie result might be lower or higher prodncnvity, improved or reduced quality'
of output, increased absenteeisjii. or voluntary resignation,
1 he preceding does not mean that equity tbeoiy is without problems. The the-
ory’ leaves some Ley issues unclear. F<5r instance, how do employees select who is
included in the “other” referent category’? How do they define inputs and outtuines?
'Cl
'.:

How <iu they combine and weigh their inputs and uuiconies to arrive at totals? WTien
5'
*
The WMdiul io the Orgwii«»»on

has an impressive amnwe or rcswvii UKK^

in co <anpliw«? inotivarion.

Expectant-v Theory
-lire most comprehensive explanarinn of motivation is expectancy theory? Though it,
,c« ITas its cridcs. most of the research evidence supports the theory, b.ssenually.
expectancy theory argues that the strength r>f a tendency to att ma certain way
Sen* on strength of an expectation tlut die act will he folloM-ed by a given out-
come and on the aiimcriveness of that outcome to the individual. T herefore, it
includes the<* three vai’iabks:
1. llie unporrante die indisidual places on d»v p.rteniial ouwomc or
rew-axd dial can be achieved on the job. wriabk vousidei-$ the unsausfied needs
of the individual.
2. Pfijw’mana/reTMrd The dc^^rec to which the indivuhi.d believes that per-
forming al a particular le^'d will lead to the acuuuucnt of a desired outcome.
5. Pff.n/fu'rfvnfMwe 'ITic probalnliu perceived by the individual that exerting
a given amount of effnrt will lead to pcriorniance.

Although this theory may sound prett}- complex, it really isn't that difficult to
visuali7€. VVlieThcr one has the desire to produce at any given liiue depends un one’s
pardcular goals and one’s pereepticin of the relative worth of pertbrmance as a path to
tike artaimnent of those goals.
Exhibit 4-4 is a considetsible simplification ol cxpcctancj theory* but describes its
major concentioiks. The srrength of a pci-son’s niorivation to perform (effort) depends
on how strongly she believes she can achieve what she arteinpw. If she achieves thk
giKil (perfomkanceX will she be adc<|uareh- rewarded and, if she is rewarded by the
organiuiion, will the reward satis^ her individual goals? Let us consider the four
steps inherent in the theory’
Kirsi, what perceived ontcennes does the )ob offer the euiolovce? Outcomes mav
be posiCvc: pay. .security, coinjwnionship, trust, fringe benefits, a chance n> use talent
or skills, or congenial relationship.^. On die other hand, employees nkay view the out-
ewnes is negative: fatigue, boredom, frustration, aikxicty, harsh su|)eivision, or threat
id dismissal. Imporiandy, reality is not relevant here: the critical i.ssue is what the indi-
vidua! employee [Kreeives the oiiteome to be, regardless of whether her perreptions
arc accurate.
Second. IK^W anraedve do employees consider th
cse (Hircuinus? Are they valued
positivtly, negativviy, or neutraJU? Thk is obviously an
internal issue ta the mdixndual
and consiikrs personal attitiuics, iJersDiialin; and iicei h. rhe individual nho finds

EXHIBIT 4-4 Simplified Expectancy Model

 Chapter 4 BMIC Mrnivatirm Concept!
pardoibr outcome anwrtwc-that is positively valued-^will prefer cittaining !t to not
ntwining it, Others iiuy find it negative and, therefore* prefer not to attain it. Still
others may be neutral.
I'hint, what kind nf behavior must the emplnytc exbihit in order tn achieve
these nutniincK? Tht niiicoines are not likely tn have any effect on the individual
employee's perfnmiance unless the employee knows, dearly and unambiguously, what
she must do in order to achieve them. For example, whal is “doing well" in terms of
performance appraisal? (In what criteria will the employee's performance be judged?
Fourth and last, how docs the employee view her chances of doing what is asked
(if her? Alter the employee has considered her own competencies and her abilin- to
control the variaWes that will determine her success, what proliability dots she place
on suvee^sfiil attsiininent?
Let’s highlight some <'f the issues rhni exjK-miicy thw»ry’ has bn>uglu forward.
Fh*st, it emphiwi7.es payoffs, or rewards. As a result, we have t<> l>clieve chat the rewards
the organization is offering align with what the employee wants, ft is a theory based
on self-interest, wherein each individual seeks co maximize his or her expecced satis-
faction. Wc have hi be concerned with the attractiveness of lewards; this aspect
requires an understanding and knowledge of what value the individual puts on organi-
zational payoffs. Wc want to reward individuals with the things they value j^witivclv,
Second, expectancy theory cinphasiz.es cxjwted behaviors. Does the person know
what is expected of her and kmnv htjw she will he appraised? Kina II y, the theory is con-
cerned with the individual’s expectations. What is realistic is irrelevant, The
employees own expectations of performance, reward* and goal satisfaction outcomes,
not the objective outcomes themselves, will determine her level f,f effort.

DON'T FORGET: MOTIVATION THEORIES

ARE CULTURE-BOUND! .
Most current motivation theories were developed in the United States by Americans
and alxiut .Americans. So we need to he carchif alxjut ussuniing chat reeoininendotions
based on motivation theories transfer across cultures.*^ Lhe most blatant pro-
American characteristics inherent in theset theories is the strong emphasis on indhnd-
ualism and quantity-of-life factors. For instance, both goal-setting and expectancy
theories emphasize goal accomplishment as well as rauonai and individual thought.
Lets take a look at how this bias ha.s affected a few- of the inotivation theories intro-
duced in this chapter.
.Maslow's hierarchy of needs theojy argues that people siari at the physiological
level and then move progressively up the hierart hy in this order: physiological, safety*
social, esteem, an<] self-actualixatjon. hierarchy, if it has any appbeariun at all,
aligns with American culnirc. In other cultures, the order of importance might l>e dif-
ferent. In countries such as Japan, (Greece, or Me.dco, where iincerTainty' avoidance

characteristics are str<4ig, security needs would IK on top of the needs hierarchy.

Countries that sc<3rc high on qualiry-f>f-life characteristics—such as Denmark,

Sweden, Norway the Netherlands, and Finland—would have swal needs un top. We
woulJ predict, for instance, that group work will motivate employees more when the
country^ culture scores high on the quality-of-life criterion.
«

An<«her m<privation concept th jt clearly has a U.S. bias is the uchievciBem need.
The View that a high achievement need acxs as an internal motivator jircsupjxisestwo
 I
Part H iTie IndHduil in OrginiMOon
$4
cvhural chi.«cteristic^-a willingness to accept a moderate de^ce of nA fwbid.
excludes countries with str-ng uncertainty awndance characteristic) and a concern
with performance (which applies almost singularly to countries wnih str.ing quantity,
of life characteristics). Tliis combination is found in Anglo-Anierican countnw such
as the United States, Canada, and Great Britain. On the other hand, these character-
istics are almost absent in countries such as Chile and Portugal.
Goal-setring theory is also certainly culture-bound. It is well adapted to Ae
United Sutes because its key components align reasonably well wiA U.S. culture. It
assumes that employees will be reasonably independent (not too high a score on
power distance), managers and employees will seek challenging goals (low in uncer-
tainty avoidance), and performance is considered important by lx>A (high in quantity-
of-life). Goal-setting theory's recommendadons are not likely to increase motivation
in countries in which Ac opposite conditions exist, such as France, Portugal, and
Chile.

IMPLICATIONS FOR MANAGERS

Many of xhe rheories presented in this chapter hav-e demonstrated reason-

ably strong predictive value. How does a manager cuncemed with motivating
employees ^pply these theories? C'ertain general suggestions can be e.Ktracred for
application, at least for managers in North ^America. For insrance, the following
recoinniendarions are consistent with die findings m this chapter: (1) recugnixe
individual differences, (2) match people to jobs. (3) use goals, (4J ensure diat goals
are perceived as attainable, (5) individualize rewards, (6) hnk rewards to perfor-
mance, and (7) check die system for equity. These suggestions, of course, would
need to be modified to reflect cultural differences outside of North America.
The importance of motivadng employees today justifies more specifics than
the concepts we\'e just offered. The next chapter builds on the concepts wc’vc
pre^red here, providing a review of the more popular morivacion techniques
and programs.
p,’’
.Ti

4.
r
Motivation:
From Concepts
to Applications
After reading this chapter, you should be able to

Identify the four ingredients common to MBO progr^ims

A

Oirtlir>e the five-step problem-soiving model in OB Mod

» A
Ui M

Explain why managers might want to use employee involvement programs

Contrast participative management with employee involvement

Explain how ESOPs can increase employee motivation

A
9> Ul

Describe file link between skill-based pay plans and motivation theories

ts one tiling to be able to recite the principles of motivation theories; it’s anodier to
I see how, as a manager, you could use them, la this chapter, we focus on how to
apply modvatinn concepts—that is, how to link theories to practice.
In the following pages, we‘ll review mouvadon techniitues and programs that
have gained varying degrees of acceptance in practice. For each of die techniques and
pnigranis we review, we’ll specjhcjlly iiddrcs*^ how the)’ build on one nr more of the
oiodvadtm theories covered in Chapter 4.

MANAGEMENT BY OBJECTIVES
Cfoal-scni ng theory hasan iinpresMVc base of research supiwn But as a manager, how
do you make goal setting operadtinal? The besr answer to that quesdfxn is: Install a
rnanagemenr bv ohjmives (MBO) program.
The Individual in the

What I* MBO?
Management by objectives (.MBO) emphasizes paracipam-ely set gods dtat are tar,-
S ferihahk and measurable. Ifs no, a new idea, In fact, .t was or.g.naUy i>ropo«d
hv Peter Drucker nearly SO years ago as a means «.f us„,g goaLs tr. ,n.,Usate people
rather than to control them.' 'Id.lay. n... introduction to baste management concepts
wouldbecompkwwihouTadisoissionofMBO.
MBOs appeal undoubredlv lies in its emphasis on converting overall organi-
zational ob.ecrives into .specific objectives for organizational units and individual
members. MBO oficrarionalizes the concept of objectives by dcvo.sing a process by
which objectives cascade down ihrotigh the organtzUion. As tlcpicicd in E.vhihit
5-1. the organization’s overall objectives arc translated into specific objectives for
each succeeding level flliat is. divisional, departmental, individual) in the organiza-
tion. But because lower-unit managers jointly participate in selling their own goals,
MBO works from the ’‘bottom up” as well as from the “top down.” The re.siilt is a
hierarchy of objectives that links objectives at one level to those at the next level.
.And for’tbe individual employee, MBO provides specific personal performance
objectives. Each person, therebire, has an identified specific contribution to make
to his or her unit’s performance. If all the individuals achieve their goals, then their
unit’s goals will be attained and the organizaition's overall objectives will become a
reality.
’there are four ingredients cutiinum in .M B() prograins: goal specificity, partici-
pative ilceiibion tnaking, an explicit time period, and performance feedback. The
objectives in MBO should he concise statements of expected accomplishments. It is
not enough, for example, merely to state a desire to cut costs, improve service, or
increase quality. Such desires have co be converted into tangible objectives that can be
measured and evaluated. Tb cut departmental costs fry 7pfzrr???, to improve service by
ensuring that all telephone orders are pnx:e.ssed 24 hours of^'eceipft or to
increase qualit)' by keeping returns to than ! percent examples of specific
objectives.

EXHIBIT 5^1 Cascading of Objectives

z ---------------------------------------------

. OveraH
■ W^aniwioral ------------------------
. ob)e«kes

>1
Dwrsiorui 1 __

f Depa>'unei>ul _
obiecdves

C Individual A 4 I
I ^eah«* f
IF
4« Chapt«r5 Motivation: From Cwcep
*

W MHO imposed
1 he nunuKer an.J employee |...nrly cho,«e die gonb and agree on how they wK
measured.
Each ohK-cuve has a specific nme penod in ».hich it i, to Jie completed.
b-p.«lh tliat period is i months, 6 monihs or 1 year. So managers and employees
have not only specific obiccuves but ako stipulated periods in which to accomplish
them. '

The find ingredicin m an MBO program is fccdUuk on performance MBO

seeks tn give LOiHinLiuu.s feedhdck on progress toward goals so that individuals can
monitor and correct their own actions. Continuous feedback, supplemented by more
fonnal periodic iiunflgenal evaluations, rakes place at the top of the organization as
well as jr the hortoni. The vice president of sales, lor instance, ba^ objectives for over-
all sales and for each of his nr her major pnxlucts. tic or she udll moniror ongoing
sales repirhs to determine jirogress toward die sales divnsion’s objectives. Similarly,
district sales managers have objecovcs» as does each salesperson in the licid Feedback
in teniis of sales and pcrfonnancc is provided to let all these people know bow they’ are
doing, .^t formal appraisal meetings, managers and their employees can review
progress toward gnals and hircher feedback can be pronded.

Linking MBO and Coal-Setting Theory

Goal-sectiiig theory demonstrates that hard goals result in a higher level of individual
performance chan do easy goals, that specific hard goals result in higher levels of per-
fonnance than do no goals at all or the generalized goal of'do your best/' and that
feet (back un one's perfonn a nee lead.s to higher performance. Compare these findings
with MBO.
AWO direct]V advocates specific goals and feedback. MBO implies, radier dim
explicidy states, that goals must be perceived as feasible. Consisrenr with goal setting.
MBO would be most effective when the goals are difficult enough to require the per-
Min to do some stretching.
The only area of possible disagreement between .MBO and goal-setting rhe<jr)' is
rebted to the issue of partieipanon—MBO strongly advocates it. whereas goal-setting
theory demon si rates that a»ignijig goals to individuals frequently works just as well.
The major benefit to using parnciparion, howe\’er, is that it increases the likelihood
that individuals will accept more difficult goals.

MBO in Prattle
Vou’U find MBO proicraim in manv business, health care, educational,
and ni.nprofit nrganizauons. Most organiziiiions. in foct, make some use nf MBC
features because managers find that goals give people d.reeuon
sense to establish goals and then fail to evaluate whether or not they re being
MetMedmX
arc 3 number of d<xnjmenied cashes in • ease/however, indicaics that the
managciueiits expcetarioiis. .A close luo Uathcr the culprits tend to he fac-
protileins rarelv lie with basic coinpone • comniittnent by top
u« such as unrealisric ejcpectations regarding
 I
M' «wt
ZSX AlSnScs m.n.Bcrs uirh"^ '

vehicle for implementing giml-sctong thcor>’-

BEHAVIOR MOPItlCATlON ..
A nm. -da«ic ‘=ni.lv took place ainn.Q JO years agi, with freight Packers at Emery .Air
Freight (now pan’of FedFt).’ Enierys management wanted packers to aggregate
shipments into freight containers rather than handling many separate .terns.
Mamgemeni believed that ..sing containers w.mld save money. WTien packers were
asked what pcn cntaKc of shipments they put in containers, the standard reply was 90
percent An analysis^ Enwrv found, howo er, th.n the rate of container use w as only
45 percent. In order tn encourage employees to use conrainers, management esub-
Icslicd a program of teedback and posirive rcinforcciiienis. Each packer w xs instructed
to keep a checklist of his or her daily packings, bo± in containers and nut. At the end
of each day. the packer computed his or her rare of conrainer use. .Alinosr unbelievably,
container use (umped to more than W percent on the first day of the program and
held to that les el. Eraen- reported that this simple program of feedback and positive
reinforcements saved the company millions ol dollars.
TTiis program at Emery ;\ir Freight illusirates the use of behavior modification,
or what has IKCOIUC more jxtpiilarly called OB Mod.^ It represents the application of
reinforcement theorv to indii iduaJs in rfie work setting.

What Is OB Mod?
The typical OB Mod program, as shown in E.thibit 5-2, follows a five-step problem-
solving model: (1) Identify-performance-related behaviors; (2) measure the behaviors;
(?) identily behavioral contingencies: (4) develop and implement an intervenuon
strategy; and (5) evaluate perfonnance improvement.'
Everything an employ ee does on his or her ioh is not equally imponani in terms
of perbinnanqc outcomes, lhe first step in OB M.xl, therefore, is to ideiiriR- the crit-
ical behaviors that have a significant iiiqMCt on the employee’s job jierformance. I hcsc
arc tl«e< 5 K> lOiKixent of behaviors iluit may account fur up to 70 or 80 percent of
each employees pctfonnaricc. Frcighr packer, at Emery ;\ir Freight u-.ing container
whenever possible is an example of a crincal behavior.
The seconti step requires the manager to develop some baseline performance
information; that is, the number of nmes the identified behavior is .xrtirnng under
Resent umdioons. In our (re.ght-packing example at Emerv; this would have Ixen
mat 45 percent of all 4^iptncni.s were pm in containers.
nic thini step is to [lerform a fonctional anaivsis to ideniifr- the behavioral con-
Dngcficies « consequences of performance. Ibk step tells d.r manager which cues
e,mt the ^havior and the ct.nseque.tces that arc currently mainmmii.g it. At Emcrv
Air Freight. ^ial norms and the greater dirtkulty in packing contafoei, were the
1 hose facing encoui aged the practice of packing items se,«ra,elv Moreover,
the consequences for continuing this Iwhaviot, before rhe OB Mod inu-n’endon were
socui aoxpuncc and escaping more demanding work
Once the functional analysis is complete, rhe manager is readv to develop and
implement an intervention strategy to strengthen desirable ,wrfoniun« beSioTS
 Chapter S Motirwoao: PnaConoepB

EXHIBIT S-2 Steps in OB Mod

n.lmeJ '
’a^JS s*«mi
z

/r 2
V* Heasire: BMeAne the fr^tncy
I of retixMve

3
MMHX ensong behavioral eorttngendes *
t
thrau^ functional analysis |
L -----------------------------
-------------------------------

4b
Apply appropriate strete^
>

4c
' Mfluure Oarc the frequency of
response after intervention
- - * JiflwZ

MapM oy aermttuee of wt MH«h« Hw* flwcwi Juty-Aupet Red bCm AfagihM

tiasi^n*
Me. ««»■ WK. AD »0m leMTWO
lu Indirido*! in the Organiesdon ’J
, . behaviors. HIK appropriate strategy «4t1 entail changing »»«
*"^„7thXrforwance/rcward linkage struenKC. processes, technology,
clement pwl oftnak.ng high-lcnd pcrh.mwnce ...orc rewarding.
™mplc, the wo'rk icchnnlogy >vas ahcred to require keepmg a checklist.
^l,c plus cunpiranon at the end oHhc day oi the. rate ot container use
artol to reinforce the dearetl behavior of usuig containers.
The final step in OB Mod is to evaluate perfonnance iinprovemciiT. In the
Enierv inten-enrion, the immchate bnptovenient in the rate of container use demon-
stmteil Uiat behanoral change took place. That it rose to 90 percent and he >1 at that
level further indicatv.s that learning nnik place, 'i-hat is, the employees uiulcrwent a
relaQvcIy penn.incnr change in bclianor.

Linking OB Mod and Reinforcement Theory

Remfi>n-emcnr rheon* relies on }x>sii3vc ranforccmcnt, shaping, and rca»gnizing: the
impact of (lifferenr schedules of rcinforcxnicnr on behavior. OB JMCMI uses thc^e con-
cepts TO provide managers with a powerful and proven means fur changing employee
behavior.

OB Mod in Praetke
OB JMOII has been used lo improve employee product iviry and to reduce errors
absenteeism, tardiness, and accident rates.^ Aiajur cunipanies such as General
Electric, Cjeneral Alills, Weyerhauscr, and Xerox have ha<l considerable success using
OB Ahxi. And a general review of numeruus OB Mod progranw hwnd chat, on aver-
age, the}’produced a 17 pcrccnl improvement in employee performance.'

EMFLOYi: E RECOGNITION PROGRAMS

I .aura Schendcll nukes only 47.2 > an hour working at her fast-food job in Pensacob,
tiorid.-i. And the iob, itself, isn’t veiy challenging or inKrcsimg. Yet Laura talks endiusi-
astically alwut her job, her boss, and die company that employs her. “WTiai 1 like is die
fact that Guy Pier supervisor] appreciates die effort f make. I Ic cumpiiment.s me regu-
larly in front ol die other people on my .shift. And I've Iwen chosen “Employee erf the
iVlonth twice in the past 6 mondis. Did yon sec my picture on that plaque on the wall?”
Organiraiions aie increa.singly recognizing whar Laura Schcndell is acknowl-
edging: Recognition can he a potent motivator.

What Are Employee Ristognition Programs?

Employee recognition programs can take nnmcroiis forms. The best ones use multi-
ple sources and recogniz* both indnidual and group aefomplishmenrs.
Exaiuplcs of recognition might include personally congratulating- an emplovee
in pnvate for a good ph. sendmg a handwiiiren note or e-mail nussaK acknowledg-
ing something positive the employee has done; a write-up in the company inaunzine;
or formal award ceremonies at which rmphk-s and plaques are handed mit to indhid-
o’.'L-’lT*'"’ -'deluding NASA. Wait Disnev Imagineenng.
BMf. Software, and Nissan-acrivcly use their public relations capabilities m wtdelv
pubhcMe the outstanding aehievemcnts of their technical and design teams.
 Chapter 5
M.Mivatiwi:Froni<:oncen,«f>App|je»6o«,
Liiikin}? Rewgnitiott Programs and Reinforcement Theory
A few jrars; havfc, 1,500 emphw'res were survewd in a variety- »f work settings to find
out what they considered to be the most powerful workplace motivator. Their
response? Rccognidcm, recognition, and more recogniuim!^
Cnnsisient with rcinforcemem theory, rewarding a behavior w‘ith recognition
immediately fbllowing that behavior is likdy to encourage its repetition. And, as noted
previously that rccognirion can take many forms. However, to inaxiinizc the motiva-
don potential of recognition, it's probably best to publicly coinmunicate who recipi-
ents arc and wh)’ dicy are being recognized. Pnidemial Insurance. ix»r instance, has an
evrensive fiirmal reeogintion program.^ Prmlential managers arc encouraged to care-
fijUy tailor recognition and rewards to their departmental obiccovesi to promote both
the nomination and reward process in t:ompany nrwslcitcrs, c-mails, and on Intranet
sites; and m publicly pwdr detailed explanations of winner'*' accomplishments.

Employee Recognition PrograrnH in Practice

In today's highly competitive ^obai economy, most organizauons are under severe
cost pressures. That makes rccogmtion programs particularly attractive, in contrast to
most other motivators, recognizing an employee's superior performance rdten costs
little or no money. Maylie that's why a survey ol 3,000 employers found that two-
thirds u?e or plan to use .special recognition awards '®
One of the in cm I well-known si nd widely used recognition devices is the use of
.sijfffesiion systems. Employees offer siittgcstions for inipniving priKVsscs or cutting
costs and are recognized with small cash awards. Tlie Japanese have been especially
effective at making suggestion systems work. For instance, a typical high-performing
Japanese plant in the auto components business generates 47 suggestions per
employee a year and pays approximately the equivalent of U S. $35 per suggestion. In
contrast, a comparable Western factory generates about one suggesuon per cmplf>)*ee
per year, but pays out $90 per suggestion. *’

EMPLOYEE INVOLVEMENT PROGRAMS

WTiat do the following examples have In common? At a Ciencral Electric aircraft
assembly plant in Durhani, Nortli Carolina, the 170 employees are organized into
nine self-directed teams. They basically have no bn«. Decisions such as who does
what work: how’ to balance training, vacations, and overtime against workflow: how co
make the manufacturing process more efficient; and how to handle teammates who
slack <iff are all made within the ream. At Childress Buick, an automobile dealer in
Phoenix, salespeojilc arc allow^ed co negotiate and finalize dcaU with customers with-
out any approval from management. Finally, the law’s of Ckrmany, France, Denmark,
Sweden, and 4iKTri^ require companies to have elected reprcscniatives from r eir
employee groups as members of their board of directors. I he common element in
these examples is that they all illustrate employee involvement programs.

^Miat Is Employee Involvement?

Emplffygf has become a convenient catchall rerm to cover a varietyof tech
mqutt.'- For instance, it encompasses popular ideas such as employee
or participative management, workplace democracy, empowennent, an empoyc
Fart H 1116 irdividwl In the Organiiation
o^tnership. Our portion is that, h™ un.,ue cha

1
*
meTi.y employee involvement? We define it « .
Sn hat speai > capacity of rn.ptoyees and is designed to
e^uraTinf^ased commitment to the organizations success." The underlj^g
loeiH that involving workers in .kosions that will affect them and increasing their
rjsmv and coiuroi over their work lives will make employees more motivated,
or^nmizahon, m.we productive, and more satisfied with their

Does that mean that paTt>al>^ti«» and empl<nee imvivtmnit are synonyms? No,
P^tiapanon is a more limited term. It^ a subset within the larger framework of
employee involvement. Each <if the employee involvement programs well describe
include some form of ciiiployec participabon. but the term ptfriw/wrwn, per se. «s too
narrow and limiting.

Examples of Employee Involvement Programs

In This section, we’E describe diree forms of employee involvement; pdrtidpative
manapetnenr, repixscntativc participation, and employee stock ownership plans.

Paiticipalive Management The distinct characteristic common to all participa*

dvc Rianagemeat programs is the use of joint decision making. 'Ihat is, employees
actually share a significani degree of decision-making power widt their immediate
superiors.
Parriciparive management has, at times, been promoted xs a panacea for poor
morale and low productivity. One audior even argued that participative management
is an ethical imperative.’■* But panici|iative management is not appropriate for every
organization or every’ work unit. For it ii» work, there must be adequate lime to par-
Qcipate, the issues in which eiuployces get involved imust be rek^^nt to then, cmploj'-
ees must have die ability (intelligence, technical knowledge, coiumunicarion skills) m
participate, and rhe organizadoa’s culture must support employee involvement.*'
Dozens o1 Miidies have been cuaducied on the jiarricipationZpcr forma nee rela-
tionship. The findings however, arc mixed.VV^cn the research is looked at care-
folly, ir appears that participation typically hxs only a modest influence on variables
such as employee prt^uciivity. mons'auoii, and job satisfaction. Of course, that con-
clusion doesne mean that the use of participative maiugemenc can’t be l>eneficial
under the right conditions. WTiat it says however, is that the use of participation is no
sure means for impmving employee pcrftjrmaiice.

Rcpresentaiivr Participation .^moxt everjr country in VVesrem Europe has some

of legislaimn requiring companies to practice represeniarive narricipatiuo.
That IS, rather tlun parti, .pare .l.rectiv in decisions, workers are represented by a
OTall g-^up of en.ployces who actually panneipnte. Representative participation has
iKten « led the .nosr w.ddy leg.slatcd fonn of employee involvement a^unJ the
world. ‘'
'Hie goal ofI representative parucipai.on is to redistribute power within an orga-

* management

I'hc TWO most common fonns of representative . >

„p_. Wofks
 Chapter 5 Monvauon: Froni Concq
Hs to Apphcai
grout® of ncHiiinated c.r elected employees who n.ust l« consulted when .nana«-
incnl makes deewmns involving personnel. For e.^mplc. in the Netherlands, if a
Dutch c(Hn>any K taken over by unoriuT Rrm. die finmeri works* councii must he
mfonned at an early stage, and if the council objects, it has ^0 dat^ tn seek a court
mMicUoa to :>top die takeover. Board representatives are emplovees who sir on a
componys board of directors and represent the interests of the firm’s employees In
some countries, large companies m.^y be legally required to make sure that employee
represencaiives have the same nuniUr of board seats as shx-kholder representatives
The overall influence of representarive participation on w'orking cmplnvees
seems co bemmimat. For insnim-e. the evidence suggests that works couiicik are doni-
mated by managciTient and have little impact on employees or the organization. And,
although rhis ft»rm of employee invuivcment might inci’case the motivation and saris-
hicliou of die xndivjduals who are doing die representing, there is linle evidence that
this ertecl ti iekles down to the operating employees whom iJiey represent. Overall,
“die peatest value of representative parucipatioo is symbolic. If one is interesicd in
changing employee altitudes or in imp roving organizational pcrfonnance, representa-
ovc partiapiition would be a poorclioice.*’’'^

Employee Stock Ownership Plans The 11 mil employee involvement approach

well discuts is employee stock ownership plans (ESOPs). Employee stock owner-
ship plans arc company-csiablished benefit plans in which enipluyees ac^^uirc stock a^
pan of their benefits. United .’\jrlints, Puliliv Supermarkets, (.iraybar Riecrric, and
window manufacturer .^Indcrscn Corp, arc ft>ur examples of companies that arc more
than 50 percent owned by their employees th rough ESOPs.’*'^
In rhe typical ESOP, an employee stock ownership erase is created. Oimpanies
contribute either sU^ck or cash to buy stock for die trust and allncate rhe stock to
empJojn^es, Allbough employees hold stock in their company, they* usually cannot take
physical possession of their shares or sell them as long as they’re still employed at the
company.
1 he research on ESOPs indicates that they increase employee satisfaction, fn
addition, they frequently result in improved organizational perfonnancc. For
instance, one snuly found that ES(*)Ps averaged nearly 7 percent higher shareholder
returns over rhe 4 ve a rs after rhe ESOP was estab I Uh td than market rctiuns of similar
companies without an ESOP.’*^

Unking Employee Involvement Programs and Motivation Theories

Employee involvement draws on several motivation theories discussed in Chapter 4.
For instance, Tlieory Y is cx^nsistent with psirticipativc Tnanagenieni, and Theory X
aligns with the more traditional autocratic style ol managing people. In terms of the
two-factor theory, employee involvement programs could provide employees with
intrinsic motivation by increasing opporruniries for growth, responsibility, and
involvement in the work itself.

Employee Involvement Programs in Practice

ffcmwny, France, the Netherlands, and the 5k:andinanan countries have firmly estab-
lished the principle of indastnal democracy in Europe, and other nations, including
Japan and Israel, have traditionally pnitiiccd some form of represeuwove participa-
tion for decades. Participative management and representative participation were
Tl«e Imftvkhal in the t*g4niMHnn
much slower to «in tfn,und in North .Xmcrican organiMtions. But nwatfey,.
employee invoivemcot proprums that str«s partidpauon have heeonw the norm.
Some maniitfCR cnnlinuc m resist sharing dcviMon-niakm^ power. Init the pressure ts
managers ui give up their riutocratit decision-inakrng style in bvor of a more par-
liciparhe. supportive, coaching-like rule. .
Uhai al>out ESOPs? I hey are Iwcoiiung a popular turm oJ einpkjyec involve-
ment pnjgrain Ihey’ve grown fnnn just a handful 50 years ago to over 10,000 now,
cuvenng jnt>re than 10 iniiliun cmplnyrcs.-^

VARIABLt-PAY PROGRAMS
For more than 30 years, Nveur Steel has had an incentive compensation plni in place
that pays Iximises of as much as 150 jKreent of base to employees. Bonuses arc calcu-
lated on the basis of the company’s prnfuabilily. Rick Benson, an investment banker
with Merrill Lynch, earned $1.4 million in 2fl01 — more than six times his base salary.
How did he nuke so much nxincy- He gets performance bonuses based on the pinf-
iwbilin-of his department, (k Michael .Armstrong. Chairman and CEO of AT&T saw
his annual salar\' and bonus drop 2’^ percent (from $4.5’^ million to $5.26 million) in
2000 because his pav package is c losely Tied to his company’s performance and 2000
was not a gixnl yciir for AT&T The common thread in each of these examples is diat
they all illustj*atc variable-pay programs.

\Vliat Arc Variable-Pay Programs?

Piece-rate phns. wage inccniives, profit sharing, bonuses, and gainsharing are all
forms of variable-pay programs. WTiat differential's these forms of conipensaiit^
from more iTiulirional programs is that a person is pn irl not only for dme on the job or
seniority; a portion of an employee's pay is based on some individual or urganiz.atinnal
measure ol iwrftirmancc or l-*odi. Unlike more tnKlitional basc-|>ay programs, variable
pay is not an annuity. 4 here is no guarantee that just Ixeause you made S60.0(X) last
year, you’ll make the same amount this year. Wth variable pay, earnings fluctuate with
rhe measure of performance.
It is precisely the fluctuadon in variable pay d^at has made these programs
atmeuve to management. It turns part of an organizations fixed labor costs into a
variable cost, diercby reducing expenses when perfonnance declines. In addifinn,
when pay is tied to performance, caniings recognize conirihiition rndier than being a
form of end dement. Low' performers find, over time, that their pay stagnates, and
high perfonners enjoy pay increases cunnnensuraie with their contributions.
Four ol rhe more widely used of the van able-pav programs arc piece-rate
wages, bonuses. proIn sharing, and gain'sharing. Piece-rate wages have been around
for nearly a century- T hey have long been popular as a means for compensating
production workers. In piece-rate pay plans, workers are paid a fixed sum for each
unit of production complered. A sy^uiii in which an employee gets nu base salaiy
and IS paid only for what he or she produc es is a pure piece-rate plan. People who
work ballparks selling peanuts and soda pop frequently are paid this way. I hey
might, for instance, get to keep 50 cents (or every bag of pcanub they sell. If they
sell 200 bags during a game, they make $100. If they sell only 4(1 bags’ their »kc u»
a mere $20 I he harder they work and die more peanuts they sell the more they
 Chapters Mirtivation: From Tti?
earn. Many organizations use a modified piece-rate nlm i„ - ,
a base hourly wage plus a piccc-raie diffcremi,). s>. a’zipper iJsuTkr'TT 1^
Strauss plant might be pai.l $S’ a,, hour plus $.10 per zippeTsuch n odifi d JSTa
provide a floor under an employee’s earnings while still offering a pnXS
incentive. *
Brmnses can be paid exclusiyelt to exeaitixes or to all emploxees. For instance,
annual bonuses lo millions of dollars are not uncommon in American corpora-
lions. Steve JOIK, C.FO at .Apple fkimputcr. received a SM) million kmus in >000 for
his success in ninnng the coinjunys fuiimi.it fortunes an.und. Increasindv bonus
plan-s are taking on a larger net within onranization-s to include lower-ranking employ-
ees. At Ea-snnan Chemical Co., (or e.-campie. all IH.OOO employees have the opportu-
nity to cam a bonus eipial to 10 percent of their .annual pay, ba.s«l on bow mu^ the
company earn> on its cosi of iinrsiA'd capiul.
Profit-sharing plans are organizution-widc programs that distribute cumpen-
sation based on sonic csublisbed tbrmula designed around a company’s profitability.
Thes»e can be direci cash outlaw’s or, parLieularly in the case of top managers, allocated
as stfxk options. For example, eveciiavcs such as Michael Eisner, rhe CEO at Disnev.
can cam over S200 million in one year. Almost all of it woultl wmc from cashing in
.stock oprinns previously granted on die basis of company profit pcrfiirmancc-
TTie variable-pay program that has gotten the iiuisr anention in recent years
is undoubtedly gainsharing. This is a fornnda-based group incentive plan.
Improvements in group productiviry—from one period to ainitbcr—detemune the
total amount of inonej’ to be allocated. .And the division uf productivity savings can be
split bctw’een rhe company and employees in an\’ number of wa)% but 50-50 is prettj’
typical.
Isn’t gainsharing the same thing as profit sharing? They're similar but not the
same thing. By focusing on productivity' gains rather than on profits, gainsharing
rewards specific liehaviors that are ICKS influenred by external factors than profits are.
Fzmpkyees in a gain sharing plan can receive incendve aw*ards even when the organ!-
zaiion isn't pnifitable.
Do variable-)>ay prograncs work? Do they intTcasc morivarinn and productirin*?
The answer is a qualified “yes.*’ (lainsharing, for example, has been found to irapnwc
producavin* in nitrst cases and often has a positive impact on employee attitudes. One
exjx^rr says gainsharing boosts employee pmdticrivity’ between .5 and 26 pen-ent.** ^\n
.American Management j\ss<x:iauon study of 83 eoropames that used gainsharing also
found, on average, that grievances dropped 83 percent^ absences fell 84 percent^ and
lost-time accidents decreased by 69 percent.*^

Linking Variable-Hay Programs and Expectancy Theory

\ariable pav is compatible widi expectancy dieon prclirtions. Specifically, uidmauals
shtjuk! perceive a strong relaaonship benveen their ^«rfo^nancc and the rewards they
receive if motivation is to be maximized. If rewards are allocated ^.fdetdy^on non-
performance factors such as seniority or job title, employees ate- l.tely to red..« their

A strong case nowadays can be made for goals ftw

mcenoves-The)'reinforce and encourage emp oye r^roup-bise** performance
*r hea inte.^ of their work unit or the orgamranon. (.ro«FHb«ied pe
 irKvnnve. MV dsn a namral extension for nrganiz^rinns that are trying « btriM .
strong ream ethic. Linking re«"jr.ls lo team performance enwunges employees to
make extra effoi-ts to help their team succeed.

Variable-Pay Programs in Practice

\’ariahle pav ts a concept that is rapidly replacing the annual rtwc-of-ln-mg raise, (inc
rcawin, as rired alxive, is its motivari.itia! ptiwcr—but don I ignore the cost implica-
rfons. Bonuses, gainsharing, and other variable-reward programs avoid the fixed
expense yJ periuaneni sabr>* honors.
Pay-f«r-pciformance has been ’’in” for compensating managers for seven)
decades. The new trend has been expanding diis pracUce to nnnmanagcrbl employ,
ccs IRM, VVal-xVbn. Pi?Z9 Hut, Cigna Corp., nnd John Dccix arc just a lew examples
ot comiKmics itsing v.nrhbk }wy with rank-anJ-flic employees In the Vnitetl Sutes,
for cxainplv, 72 pcnx'nr of all companies ha<t some form of variable-pay plan for
noncxecunves in the year 2000, as compared with 47 percent in 1990 and less than JO
jjcrcentin 1985.-*
Gainsharing’s popularity seems to be narrowly focused among large, unionised
manufacHiring companies.-’ It's Iwng used in about 2,000 companies, including
major finxis such as Bell & Howell, American Safen* Razor, Champion Spark Plug,
Cincinnati Alilacroii, Eaton, Firestone Tire, HtX)kcr CJicmical, and Mead Paper.

SKILL-BASED PAY PLANS

Organizadens hue |x?ople fortheir skills, then n-pitally put them in jobs and pay them
on the ba.sis of their job tide or rank. So the director of corporate sales cams S150,000
a v^ear, the regional sales managers make $90,000, and the discrict sales managers get
$70,000. But it nrganizatioiis hire people because of their competencies, why don't
they pay them for those same cuinperendes? Some organiaarions do.

What Are Skill-Rased Pay Plans?

Skill-based pay is an alternative to lob-bascd pay. Rather titan having an individual's
job title define his or her pay caiegon^. sldll-basecl pay (soiiieciines called iMnpttaicy^^
busedpuy} sets pay levels <in the ba.sis of how many sldlls employees have or how many
jobs they iwn do.-^ For instance, workers at xburriean Steel Wire can boost their
annual salaries by up to $12,480 W acquiring as many as 10 skills, and Frico-Lay nes
its ctMnpCMsarion for managers to their progress in develop!Tig skills in leadership,
grfjup pnK-ess facili ration, and coirmunicaifons.
Hhais the a|i{>eal of sldJI-based pay plans? From management's perspective:
flexibility. Filling staffing needs i$ easier when employee skills are interehangeable.
'this is pariieubrly true today; as many organisations cut the size of their work-
force. Downsizing requires more generalists and fewer specialists. Skill-based pav
encourages employees to acquire a broad range of skills. Rut there are other bene-
fits to ski 11-based pay. It facilitates cumnmnicauon throughout the oreanizadon
liecause people gam a better understanding of cithers’ jtibs. k lessens dvsfuneduaal
‘•pfoieciion of territory’* behavior. For instance, where skill-hascd pav exists, you’re
less likely to hear the phrase. “It s not iny job!’’ Skilhbased [wy also helps meet the
needs of ambitious employees who confront minimal advancement upportumOA
 Chapter 5 Modv&don: FWRI Concepts tu AppiicaoM
These people can increase their caruings and knowledge without a promotion in
job title.
WTiafs the downside of skdl-hascd pay? People can "top out*—learning all the
skills the program calls tor them to learn. Topping out can Frustrate cnipk»yees after
th^v’ve beconie challenged by an environment of I canon g, growth, and continual pay
raises. SLlIs can also become obsolete. Finally, skill-based plans don’t address level nf
performance, only whcdier someone can perftrrm rhe skill. For some .skills—such as
checking qualin^ or leading a team—level of performance may he equivocal.
.Although it’s possible co assess how w«I) employees perform each of the skills and
combine that assessitient wick a skill-based plan, doing so is not an inherent part of
skill bjsed pay.

Linking Skill-Based Pay Plans to Motivation Theories

Skill-based pay plans are consistent with several motivation theories. Because they
encourage employees to I earn, expand their skills, and grow; they arc consistent with
Maslow’s hierarchy of needs rheont .Vtiong employees whose low er-order needs are
substantially satisfied, the opportunity to experience growth can be a motivator.
Paying people to expand their skill levels is also consistent with research on the
achievement need. High achievers have a compelling drive to do things better or more
efficiently. By learning new skills nr itu proving the skills they already hold, high
achievers will find tbcir jobs more challenging.
There is also a link between reinforcement theory’ and skill-based pay. Skill-
based pay encourages employees to develop their flexibility; to continue to leant, to
cross-rrain, to be generalists rather than specialists, and to work cr»f)jjeratively with
others in the organization. To the detrree that management wants employees CO
demons trace such behaviors, skril-hased pay should act as a rciaforcer.
Skill-based pay may also have equity implications. When employees make their
in put: outcome comparisons, skills may provide a fairer input criterion for detennin-
ing pay than factors such as senior it)’ or education. To the degree that employees per-
ceive skills as the critical variable in job performance, the use of skill-based pay may
increase the perception of equity and help uptiinize employee motivation.

Skill-Based Pay in Praclict*

.4 number of studies have investigated the use and effectiveness of skill-based pay.
The overall conclusion, based on these studies, is that use of skill-based pay is
expanding and that it generally leads to higher employee performance and satisfac-
tion. hor instance, approximately 60 percent of 1000 firms arc using some
fonn of skill-based pay.-” And a survey of 27 companies that pay employees for
learning exua skills found that 70 to 88 percent reported higher job sadsfacriun,
product quality, or productivity; Some 70 to 75 percent cited lower operating costs
or low er Turnover.’*
Skilled-based pay appears to be an idea whose time has conic. As one expert
noted, “Slowly; but surely, we're becoming a skill-based society where your market
value is tied tt) what you can do and w hat your skill set is. In this new world where
skills and knowledge are what really counts, it doesn’t make sense co treat people as
lobhoMcn. 1( makes sense to treat them as people with s|*ciGc skills and co pay them
for cboae skills."-'’^
The Individual in die Orgajiizfltion

Organizations havr imroduct^il a number of programs designed tu increase

employee moevanon. piXKluebvity; anci Siuisfacdun. Impnrrantly. rh«c programs
arc grounded on basic mad van on Theories.
It’s easy h) criticize e< lues ton, nnd researcher’^ for tlieir focus on bid Id in g
theories. Students and practitioners often think that these dteones are unrealLstie
or urelevanr ro solving real-life probletn.s. This chapter makes a gfwid rebuttal in
those critics. It iHustrates how tens of thousands of organizations and millions of
managers in countries around the globe are using rnorivarion theories to build
practical incentive programs.
'I be six mmivalion programs we discussed in this diaptcr arc nor applicable
to every organization or every tnanager's needs. Bur an understanding of these
pnj^iuns u-ill help you design internal systems tliat can increxse ernploj-ec pro-
ducti'iCy and satisfaction.
 CHAPTER 6 ___________________ ____
_________________________________________ ____

Individual Decision
Making
After reading this chapter, you should be able to

1. Explain the six-step rational decision-making model and its dssumptions

Vs
--
2. Identify the key components in the three*component model of creativity

J. Describe actions of the boundedly rational decision maker

4< Define heuristics and explain how they bias decisions

5. Explain escalation of commitment

6. fderhfy (our decision-making styles

7. Explain the implications of stages of moral development to decision making

Individuals in organ izu! ions make decisions. Top managers, for inswnue, dctenninc
X their organization’s goals, what products or sendees to offer, how best ru orgjinizxj
coqxirate headquarters, or where to locate a new m a nu fa cm ring plant. Middie- and
lower-level managers determine production schedules, seleci new cmploye€S» and
decide how pay raises are to be allocated. The making of decisions, however, is not the
sole province of managers. Nonroanagcrial employees also make decisions that affect
their jobs and rhe organizations they work for, 'The more obvious of these decisions
might include w-hcdier to come lo w ork on any given day, how much effort to put for-
ward once at work, and whether to comply with a request mAde by the boss.
So all individuals in every urganizatiun rcgniarly engage in decision making;
that is, they make choices from among two or more altci-nadvcs. Undoubtedly, many
of these choices arc almost reflex actions undertaken with little conscious thought.
For example, the boss xsks you in complete a certain report by the end of rhe day and
you a imply; assuming the request is reasonable. In such instances, choices are still
being made even though they don’t require much thought. But when individuals con-
liront new or important decisions, they can be expected to reason them out thought-
Wly. AJtemaaves will be developed. Pros and cons will be weighed. 'J’he result is that
what |>eo|*ilc do on their jobs is influenced hy their decision proces.ses.
 I
♦file liaMdwI in the Orgmi^tio"
In this chapter, we SKUS on two different approaches to understanding decirio#^
mating First^Xcrihe how decisions >haM be made, l-hen, we review a la^ body '
f Snee to show p.u how decisions are made m organizations. VVe con-
dude by offering some specific suggesrions on how n.aiiiigeis can improve their

dccision-makiiig elfettivcness-

HOW SHOVW DECISIONS BE MADE.

I
Let’s bcKin bv describing how individuals should behave in ortkr to inariniixe a cer-
tain outcome’ W’c call this the rational dccision-nwking process.

The Rational Decision-Making Process

The optimizing decision maker is ratioaid. I hat is, he or she makes vonsistent. value

rn
inxximizinc choices within specified constraints. I hese choices are made tcllowing
six-step mtKk'l. Specific assumptions underlie this model.

The Rational Model J’he six steps in the rational decision-making model are listed
in Exhibit 6-1J 'I he model begins by theprffbIrM, \ problem e-tists when there
is a distTppanej’ between an existing and a desired state of affairs. If you calculate your
innnrhly expenses and find you're spending $50 more than you allocated in your bud-
get, you have defined a problem. Many poor decisions can be traced to rhe decision
maker’s overlooking a problem or incorrectly defining the problem.
Once a decision maker has defined the problem, he or she needs to identify the
dteisioTi enreria that will be important in sohhng the problem. In this step, the deci-
sion maker is determining what’s relevant in making the decision. I'his step brings
the decision maker’s interests, values, and personal preferences into the process.
Idenrifidng criteria is important because what one person thinks is relevant, another
may not. Also keep in mind that any factors not identified in this step arc considered
as irrelevant to the decision maker.
The criteria identified are rarely all equal in importance. So the third step
requires the ducisiun-makee to weight the pmifwffy kkntified criteria in order to give
them correct priority m the decision.
TTie fourdi step rcquiics the decision maker to generattt passible a/ternain'es that
could succeed in resolving die problem, \o attempt is made in this step to appraise
these alternatives, only to list diem.
Once the alternatives have been generated, die decision maker must critically
analyze and evaluate each one. 1 his is done by rating each ahernaiii^ on eiteb critfrian.

EXHIBIT 6-1 The Six-Step Rational Decision-Making Model

1. Dcime rhe probkni

2. Ideniifi* decision criteria
3. Wei g ht ch c cn tcria
4. Generate akerniuivcs
5. Rate each alternatixT on each crirgtion
6. <xjnqHiig the optimal decisiun
I
 chafrteri ImU^du*! Decisis. MsWng

Lf in tai IIS J number of iiKSumpcinns. briefly nutluie them

rhe possible con seep lenres of each alcernaijve.

i. C7e/ir prefoiffices. RationaJin- a«unws chat the eritcria and alternatives ran be ranked
and weighted co ccHecr their imporrance.
4. C«x<M«z h’s assumed that the specific decision criteria arc constant and
that the weights assigned to them are stable over rime.
5. .Vo CMic or eorr eort^traiitfr. Tlie rational decision maker can obtain hill information
about criteria and alternatives because it^ assumed that there are no lime orcostenn-
straifics.
6. fia-voff. 'I’hc rational deddon maker will choose rhe alternative that yields
the highest perceived value.

Improving Creativity in Decision Making

The rational decision maker needs crearivity: that is, the abilit>’ to produce novel and
usehji ideas. These are ideas that are different from what’s been done before but that
arc also appropriate to the problem or opportunity presented. Why is creativity

ahenutim.

Creative Potential Most people have cread vc potential that they n use when con-
fronted with a decis ion-ma^ng problem. But to unleash that potential, they have to
get out of the psychological ruts most of us ger into and learn how tn tliink about a

problem in divergent w’a^'s.

Wc can start with the obvious. People differ in their inherent creativity.

ThreeXComponent Model of Creativity Given that most people have the capac-
ity t<j lx; ar least mcKieratclv creative, what can individuals and or^nizations o ro
_____ I ............... - ...... T"k« iwv« -mcwiT rn this (luestion ties in the three*
 ,kitb and intrinsic usk m.rtivation («e Exhibit r»-2). Studies «mfirm rtm the
the k^ el of each of these three components, the higher the creativity ».
FMertiit IS the foundarion of all cT«dve work. P.«ssr»s undcrsia^mgof artand
EinsteinX knowledge of phvsiw were necessary conditions for them to be able lo make
creative contributions to their fields, .^n.l you w<nikln’t eM>e« someone w,^ a mini-
mal knowledge of programming to i.e vers' creative as a so^are enpneer. I he ^ten-
UflI for creatiWty- is enhanced u hui indhnduals have abibaeSt know ledge, profiaen-
cics, and similar eiipenise in dieir fields of endeavor.
J'he second component is craahe-fhfnkin^ sktUf. This encompasses personality
characterisrics associated with creauvitj; the ability to use analogies, as well as the
ratenrni see the familiar in a dift.rent light. For instance, die following individual
traits have been found to be assix iaied with the development of creative ideas: intel-
Itgcni-e, independence, self-confidcnce. risk-uking, an internal locus of contrnh tol-
erance for ambiguity, and perseverance in the fate of frustraiion? 1 he effective use
of analogies allows decision makers to apply an idea from one context to another.
One of the most famous examples in which analogy resulted in a creative break-
through was j\Je.tander Graham Bell’s observation chat it might be possible to take
concepts that operate in the ear and apply them to his ‘"talking IKIK.” He noticed that
the bones in the ear are operated by a delicate, thin memlirane. He wondered why,
then, a I bicker and stronger piece of membrane shouldn't be able to move a piece of
steel. Our of that analogj*, the tclephririe was conceived. Of course, some people
have developed their skill at being able to sec problems a new' way They’re able to
make the strange familiar and the familiar strange.^ For instance, most of us think of
hens laying eggs, hut how many of us have considered that a hen is only an egg’s way
of making another egg?
1 he final component in oiir model is intrinsk ffwtivation. This is the desire
to work on .something because it's interesting, involving, excidng, satisR-ing, or per-

f
EXHIBIT 6-2 The Three Components of Creativrty

'\

S*wr TM AmaMta.-Ua»Mi« Cmnvitr tn &Bs<«jauoni.-

y
 Chapters IndWchulDecisionM»k)r.
snnallv Chdkngiiig This .nobvarional component is what njt-ns crearivity
mto aeafve Kle:ts. It .ietc.'nnnes the extent to which individuals ftiliy en^
du-.t vxperu^ and creeuve sldHs. So creative peopk often k.ve their work, totht noim
of.scennng<4wessed. I.nporUntlv, an individuars work environment can have a sLif-
i«nr effect on mirii.Me monvation. Specifically, five organiiadonil factors have been
found that can .iiipwk your ereatmn-: (1) expected evaluaHon—tocuhing on how vour
work ks g.ung co be evaluated, (2) .simveillanco—being watched while you’re working
(?) external mouvators—eii.phas.zjng external, tangible rewards: (4) competition—
facing wm-lose situations widi peers, and (5) constrained choice-being given limits
on bow yon cjn do j’oui' w'ork?

HOW DECISIONS ARE ACTUALLY MADE

IN ORGANIZATIONS
,Ve derision makers in organizations rational? Do they carefully assess problems,
idcnab’ alJ relevant criTens, use their creanvirv’ to identify all viable akemadves, and
painstakingly evaluate ever>' alternative to find the optiinal c:hoice? Ln some situations
chev’ do. When derision makers are faced with a simple probleTii having few alxerna*
dve courses of i^ction, and when rhe cost of searching out and evaluating akemntives is
low, the rational model provides a fairly accurate description of the decision-making
process. But such situarions arc rhe exception. Most dcdsioiw in dxe real world don\
follow the rational model. For instance, people arc usually content to find an accept-
able or reasonable soln non to their problem rather chan the optimal one.
Consequently, decision makers generally make Imiited use of their creativity, ("hoices
tend to be confined to the nei^borh(x>d of d^e problem symptom and to the neigh-
borhood of the current alternative. As one expert in derision making concluded:
“Most significant decLsions arc made by judgment, rather chan l»y a defined prescrip-
tive model.”’ The following section reviews a large body of evidence to provide you
with a more aaurate des^ption of how most derisions in organizaiions are actually
made.

Bounded Rationahty
WTien }-ou considered which college to attend, did you look at evtty viable alternative.
Did you carefully identify all ihe criteria that were important in your decision? Did
vou es aluate each alcemarivc against the criteria in order to find the optimal coUege-
1 expect the answer to all tlicsc questions is zfo. Well, don’t feel bad. Few people ma e
their college choice this wav. Instead of optimizing, you probably “satisficed.
UTten fiiccd w ith a complex problem, most people respond by reducing the
pniblcm to a level at which it can l>e readily understood. The liniiw in ormaaon
pnxessing capabilih of human beings makes it impossible
^aand all the information necessary’ to optimize. So people tax
solutions that are satisfactory and suffiaent , enkine complex
1

TIK IndivKhuJ in the tXsaoinoon

eomplexiv* IwdMdiwH can then behave ntionally within the limits of the «mp|.

"“‘’llow does lM>undcd rat.onalitv work for the typ.wl irniividuul? O.iec a pnWem 1
,s identified, the sear, h for eritena a.al ahemat.vcs begins. But the W of criicm « 1

iikeJv to l=e far from exhaustive. The decision maker will idennly a limited list made up J
of the more conspiininus choices. These are the choices that are easy to tmd and that
wnd to be highly nsiMe. hi ciscs, thev will represent familhr criteria and prni-
ousk- mecUinl-true 4<jbdons. Once dik liuiilcd set of akernabves is identified, the
decision maker l>egnn rcviexving them. But the re%new will not he c<wiprehen-
,ivj< ._n(,T all of the al rem a lives will he carefully evaluated. Instead, titc ikciAion maker
will hcinn with alicrnabvts rhat differ only tn a relatively small degree from the choice
currently in effect. Following along familiar and well-worn paths, the deciMun maker
1^1 review* alremartves only until he or sdic idcutiltcs an akerwative that is
“g<MHl cniniu'h’^one that meets an accepuhk level of performance, The first alterna-
tive that meets the ‘'good enough” criterion ends the search. So the final solution rep-
resents a sansficing choice rather than an "primal one.
One of Ulf inure intere.«!ring aspects of bounded rationality is that the order in
which alternatives arc considered is critical in derermining which alternative is
selected. Remcmher, in the fully ratioiud optimixing model, all altcrnaiives are ctxn-
nially listed in a hierarchv of preferred order Because all alrematives are consitlered,
the initial order in which they are evaluated is irrelevant. Every potential solution
gets a full andojinplete enluanun. But this i.sn'r the case w ith Ixmnded I'stionalicy*. If
we assume rhat a problem has more than one potential solution, the satisficing choice
will be the first one the decision maker encounters. Decision makers use
simple and limited models, so they typically begin by identifying alternatives that are
obvious, ones with which they are familiar, and those not t(x> far from the status quo.
Solutions that depart least Irom the status quo and meet the decision criteria are most
likely to he selected. A unique and creative alternative may present an optimizing
sdutiun to rhe problem, but it’s unlikely to be chosen bei?ause an acceptable stJiiriun
will be identified well before the decision maker is required to search very far hevond
Intuition
the status quo.
“Sometimes TOU ve just got lo go with your gut feeling,” the manager said a^ he trie<l
to explain bow he chose between wo qualified job applicants. VV'as this manager
wTong to use his •‘gm feebng”? L using gut feelings a sign of being a ptxw manager?
Does it necessaj ily result in inferior results* The answers to these questions are all
Managers re^larly use their intuition, and doing so may actually help improve deci-
sion making.^
Intuitive decision making is an unconscious process created our of distilled
exfwrience. It doesn’t iictressarily operate independently of rational analysis; rather,
the two complement each other. Research on chess plnying provides an excellent illus-
tration of bow intuition worLs.’^ Novice chcKs players and grand masters were shown
an actual, but unfamiliar. chc» game with alxjut 25 pieces on the board, After 5 or 10
seconds, the pieces were removed and each player was asked to rcxnruiruct the jMcces
l>y potidon. ()n average, the grand master could put 2 J or 24 pictrs in rheir cxirrcct
squsres, but the noriee was able to replace only 6. ITien the exercise was changed.
 Chapters
-n.,. time the p.«« were■ pbce.l r,nd«.mly on the hoard. Apin, rhe noviee «r «,|-
ahou. 6 tyrret,. fm, u. d.d the grand ma.uer! 'I he setv,.ul exercrise dc.,vn»rraK«
rhe gntn. m.i.ier d,dn t have any better memory. d,an the novice. What he did haX
u a« the abilit)’, k-tsed on the exjx-neiKe of having played ihowtands. of ehesb rained to
n-«.gT,.ze pHterns and C.ster. of pieces that occur on chcsshoanls in the course’ of
games. Studies farther sheov due chess professionals can simultaneously play 5<> or
more game.s, in which decisions often must be made in onlv seconds, and exhibit only
a mt^crarcly lower level of sic ill than when playing one game under tournament con-
dtnons. Ill which decisions often take half .in hour or longer. F.xpenenee allows the
exjxrt to recognize □ siruaoon and draw on previously Icametl infornution associated
with that situation n. arrive quietly af a decision. The result is that the intuitive
decision maker can decide vapidly widi whar appears to he very limited information.

Identify ing Problems

ProWems don’t come wrh flashing neon lighc to ideiitift tfwmselvcs. .And one ,>cr-
bon’s i.s another persons aatptabk staonquo. So how do decision makers iden-
ofo and select probiems?
Problems that are visible tend tn have a higher prciliability of being selected than
<me5 that are impoitanL* ’ WTi)’? We can offer ar least tw o reasons. First, it’s easier to
recognize visible problems. They are mure likely tu cacch a det-aon niakcrt attenbon.
Second, remember rhai we’ru concerned with decision uiakii^g in organtications.
Decision makers want to upjxrsu cunipctciU and “on top of problems.” This desire
mebvates them to f(KUS on problems char arc visible ru others.
And (lon’x ignore the decision makers self-in ter cai. If a decision maker faves a
conflict between selecting a problem thni is important to the organ itabcxi and one
that is importani to the decision maker, self-interest tends to win out.^*’ This tendency
also is related to the issue of \’isibility- k’s usually in a det ibon maker^ best interest ro
attack high-profile problems. Tt convev’s to others that things arc under conmd.
Moreover, when the decision maker's performance is later reviewed, die evaluator is
more likely to give a high rating to someone w ho has been nggressively attacking vwi-
ble problems than to someone whose actions have been le^s obvious.

Developing Alternatives
Since decision makers rarely seek an optimal solurion, but rather a satislicing one, we
should expect to find a minimal use of creanvny in ibe search fur altemaLi\*es. .And
that expectation is generally on target.
Efforts will be made to tn lo keep rhe search process simple. IT will tend to be
confined to the neighborhood of the current altemaiivc. More complex search behav-
ior, which includes the development of creative alTernatives, will IK rc'^orrcd to o }
when a simple search foils to uncover j satisfactory alteriiabve.
Evidence indicates that derision niiikiiig is incremental ratlier than compfc en
sive; that is, decision makers rarely formulate new and unique problem
dumatives and rareh- explore unfomiliar territory?' 1 hey avoid the
considering all the imporwnt factors, weighing their relative loerits an raw ac ,
and calculating the value for each alternanve. Instead, they make
(incremental) oxn^arisons. ITiis branch approach simplifies decision I
paring only alternatives that differ in relatively small degree from tec nice
 The Indmdual in dw Orpru««ion
in effect This approach al5<^ make* »t unncecssar>' for the decision tnakcr to tho^
nuirlilv ewinine an alternaiivc and its ronsequenccs, nne netd investigate only those
a^et-ts in which the pro|»o«.-d altenmtive and its cuMrijueiues diffi r from the stat«
Wliat emerges from die above description is a ilccision maker who takes unal!
stfiJS toward an olijecuve. It acknowledges the noneoiiiprehcnsive nanire of choice: in
Other words, decision makers m.ike suece.wive comparisons because decisions arc
never made forever and wririen in stone, hut rather they are made and remade end-
lessly in small comparisons Iretweeii narrow dioites.

Making Choices
In order to avoid inforaiation overload, decision makers rely on heuristics, or judg.
mental sliom'tit.s, in derision making.' ' There are two coiitmoii categories ul hcuris.
li*;s availaliilitj anil representativeness. Each crcatc.s biase.s in jinlgment. .Another
bias that dcci.sion makers offen make is the lendcncy tt« escalate cotninirmeni to .1 fail-
ing tdiirsc uf action.

Availabiliiy Heuristic z\ lot more pec^jk Miffer from fear of flynng than irom tear of
drivings car. fhe reason is rhai many people diink flying is more dangerous. It isn't,
of course. Wtli apnlogies ahead of uiiie for tliis graphic example, il flying on a comw
mcrcidl airline was as dangerous as drinng, ihe cxiuhalcnr ol two 747*. filled to capac-
ity, would have to CM^h e^’eiy week, killing all aboard, to match the risk of being killed
in a car accident. But the uiedia give a lot more ahcntioii to air accidents titan co car
accidenn;, so wc winl hi oversale the risk in flying anti understarc rhe nsk in driving.
’1'hi.s illusrraiion is an cyaraple of the availability heuristic, which is the ten-
dency for people to base etctr judgments on information that is readily available to
them. Events that evoke emotions, thAt are particularly nvid, or that have occurred
recently tend to he mosi available in our memory. A.b a result, we tend to be prone
to overestiinanng unlikely events sucli as an airplane crash. The availability heuris-
tic caJi also explain why nmnagers, when doine Mtiniial pcrtonnancc appraisal*, rend
to give more weight n> recent behatnois of an cmphiyee than to those of 6 or 9
months ago.

Repi’csentativc Heuristic Literally millions cl inner-cit)’, African .American boys

in the United States talk about the goal of playing baskcthall in the NBA. In reality,
they have a better chance of becoming medical d<uiors than they do of playing in the
NBA. But these kid* arc suffering fioin a representative heuristic. They tend to
assess Uie likelihood of an occurrence by ciy’ing to m.nch it with a pre ex wring rate gon*.
I hey hear about some boy from their neighborhood 10 vears ago who went on to ]>Ly
ptofessional basketball. Or they watdi NBA games on television rtn<l think that the
playm are like them. We all are j^ilty of using this hcurtstii at times. Managers, for
exajujdc, Irrqucntly predict the p<Tformance of a new product by relating il lo a pre-
nous pi odui rV success. Or they hired three graduates from die .same imiversiiy who
lumed nut lu l>e poor pcrfiimure, .so they predict that a current job applic.inr from
that uni ver sky WODT be a grxxl etnplo^xc.

Escalation ol Conunitment jKuother bia.s that creeps into deci-sions in practice is a

tendenp lo escalate euinmitment when a decision sn eain represents a scries of deci-
sions. ' Escalation of comniitnient is an iiUTcased coninritmenc to a prcviowi deci-
siMi in sjritc ol negjove mhinihirion. for cxauipk, a friend of mine had been dating
 Cl»frt«r6 tadkiJMl Drt*, /vukin,
i»*uiiian fur about 4 yeai^. Although he admitted that things weren’t going too well in
(he lebtionsbip, he informed me that he was going lo marry the woman. A hit sur-
b>’ his decision, 1 asked him why. He responded. “I have n kn invested in the
relauonship.'” Simibriy. another friend was explaining why she was working on a doc-
rorate in education, aldiough a he di diked leaching and didn't want ri» continue her
career in education She lold me she wanted to he a software prngramnier. But
tlien she hit me with her esraliihon-of-conunitnient explajiaiion; “I dreadv have a
master's in cdocarion and I'd have w go hack aud complete some dcfidencie^ if I
changed tn w ork oji a degree in sottware prograinmiiignow'.’
Il has been weh <kirunienLtd that i nd ivi duals escalate coHniiitment Ui a hi ling
vouiw of dction when dwy view’ rhemsclvcs as revpojisibk for the failure. Thai is, they
“throw gtMx! mone\' .ifeer bad" to deinonmatv ihac their initial decision wasn’t wrong
and co avoid having ro ,^dmiT they made a mistake. E.saihtion ot'cojinnitmcHi is also
congnicnt with evidence dial people try to appear consisunc in what they say and do.
Increasing commitment to preFio«$ actions conveys consistency.
F.scab ban of conunicmcin has ofnhous iiupiicanons for manage rial decisions.
Many an organization hxs saffered large losses because a manager was dcicrauned
to prove rhar his or her original decision was right by continuing to commit
resources to what was a lost CJUM: from the beginning. Li addition, consistency is a
characterisne often asstK’iatcd with effective leaders. So managers, in an effort to
appear effective, may be rnorivaced to be cotj?.istcnt when switching to Another
course of action may be prefcrnhle. In actualiky, effecrive managers are those who
arc able to difFercndate between situations in which pvn;istciu’e will pay off and sit-
uatioiih where ir won't.

Individual Differences
Pur (2had and Scan the same decision situation and Chad ahnerst alw’ays seems to
take longer m come to a solution. Ch in Is final choices aren’t necessarily always better
than Sejn’s, he’s just slower in processing information. In addition, if there’s an obvi-
ous risk dimension in the decision, Scan sccius consisieiidy to prefer a riskier oplioA
than docs Cliad. WTiar thit illustrates i^ dial all of us bring iwTsunjility and other indi-
vidual differences to the decisiexis we make. Iwo of these indixidual differences seem
partimlarly relevant ro decision making in organizations—decision-making styles and
lend ol moral developmciH.

Decjsjon*.VfakiQg Styles I’he decision-sty les model idcmiEcs four differenr indi-
vidual approaches to makiiig dcci.skms.^^ k wuh designed lo be used by managers and
aspiring managers, hunts general framework ciin he used with any individual decision
maker.
I hv foundarion of the nxidel is the recognition that people differ along two
dinieiisioas. The first is their way Qithinl'ffig. Some people are l«g«’al and rarional.
Thcy process infun I uri< in serially, tn ennfrasr. some jicoplf arc inniitivv arnl creative.
The) perceive things as a w hole, Note that these dillerentes are above and beyond the
general human charaercrisnes—specifically, bounded rauunahey—discussed earlier.
d*hc other dimension aiklrcsses s |•^crson^ tnlerana’ ftn'n^/tbiguity. Some |»ccjple have a
high need to structure infonnadun in way^ that minimve anibiguit)’; others are able to
pAKcss many thoughts at rhe same time. WTien these nvo dimcnsioiu arc dia-
grammed, they fiunn four stsles of decision making (see Exhibit 6-3). these arc:
Ihrtw tive, AnalMical. Conccpwal. and Behavioral.
 S.

♦
<.

t
5
>*

BXHrWT fr-3 Oeciswo-Styte Model

Htfh

►
Amlyiicsi^

Tolerance for Ambiguity

<
Rational I « Intuiuv*
Way of Thinking

SOSNK AJ. RM aao la aoui^ndes. MrSIOft Mdfcnf lUwr RM<. Mt PienOce W. 19d2), p. 29.

P«^lc using the dtreanv styie have low tolerance for ambiguit)' and sect n-
ricmalicy. They are efficient and logical. B»r their concern fur efficiency'results in their
making dccisioiib \mth mininval information and assessing tew altcmathes. Directive
types mate decisions fest, and they focus on rhe short run.
rhe /ma/yncai type has a much greater tolerance lor ambiguity than do directive
decision makers. They desire more infonnaiiun and consider more alternatives than
do directives. Analyut*al managers would be l>est characterized as (.*arefu! decision
maters with the ability to adapt or cope with new- situations.
Individuals with a eweeprua/ style tend to be very broad in tiieir uudook and con-
sider many alternatives. Ilieir focus is long range, and they are very good at finding
355
creative solutions to problems.
ITie final category—those witii a /’r^/tvwryr/scyk’-^'haractcrizcs decision nwk'
ers who work well with others. They're concerned with the achiescmenls of peers
and subordinates. I*hey*’re receptive to suggestions from others and rely heavily on
meetings for communicating, 'TJiis type of manager trieji to avoid conflict and seeb
acceptance.
categories arc distinct, most managers have characteristics
mat fall into more dian one. So it’s probably best to think in terms of a manager^
dormnant sty le and his or her backup styles. Some managers rely abnost exclusively
on eir dominant style; more flexible managers can nuke shife depending on the
situauon. re
L students, lower-level managers, and top executives tend to score
igncM in the analytical style. ’I hat’s not surprising, given the emphasis that for-
mal education, particularly business education, gives to developing rational think-
 Chapter 6 Individual r>«:uion Maldog

ing. For instance, courses in accounting, statistics, and finance ah stress rational
analysis.
Ill addition to providing a framework for looking at individual differences,
focating on decision styles can be useful tor helping ymi understand how two equally
intelligent people, with ncccs.'. lo the same information, can differ in the ways they
approach decisions and die final choices diey make.

r«
r;
'U"
.
Level of jMorJ Development Moral development is relevant in decision making
because many decisions have an ethical dimension. An understanding of this concept
can help you see how different people impose different ethical standards on their V♦
deci‘5100 s.
A substantial body nf research confirms the existence of three levels of moral
dev^ebpment, each coinprising rwo sfageH.’’ Ac each successive stage, an individuePs
moral jiidginetn gixw's less and less depenrienr on oncside influences. The three levels
and six stages arc described in Exhibit 6-4.
The first level is lal>eled piecvfjvcnfiona/. At this level, individuals respond to
notions of right or wrong only when personal consequences are involved, such as
physical punish men i, reward, or exchange of favors. Reasoning at the ogwrf’nricJM/
level indicates that moral value resides in maintaining the conventional order and the

EXHIBIT 6-4 Levels and Stages of Moral Development

A

A
Level S tage/Descr iption

Principled 6. Following self-chosen echlcai

principles even if they
violate the hw
4*
5. Valuing rights ol others; and
upholding nonrelatrve
values and rights regardless
of the majoric/s opinion

Conventional 4. Maintaining conventional order by

fulfilling obligations to which
you have agreed

3. living up to what is expected by

people close to you

Pr«corwentional 2. Following rules only when iVs In your

immediate interest

I. Stkkinf to rules to avoid physical

punlihinenc

I
■
MA*M h«n L KatHbeff. 'Moral Stages end Mouii/tfijon: the Ccgnitive-OMOpnienta] 4■I
,
AnxoacAZ in t Utivne
MK OgMfepmgnt Mtwr; Tbeoo. w Sooa/ ijtues (Me Ifork Hott. Amolua ft
WMAon. 1979).
 lie fndi«du.lin .he Org.niaoon .1
Part II
. U r„ dw i,nm ipleJ Ic'd. itnlid<l««a1s make a clear effc.ri to define
f--" the authoriry- of the groups to uhKh they belong «r snei-

, people pr<’K=>--ed thr.iugb .he six stages in a l.Kk-ste|. fashion. They

SuaHy ntovc ladder, stage by stage. They .iont ,t.n,p steps. Seu.n.l, there «no
Sra, i oFconrinued developmen.. Development can terminate a. .any stage. Third,
giunintec limited to oljeying the rules and laws ot M««y.
jSh the stage a manager reaches, the more he or she will In- predLs^.sed
,o mi ethical decisions, bur instance, a stage .1 manager ,s likely Io make dccismns
,)n.t udl receive approval by h» or her |Ken.; a stage 4 manager w’lli -^ek tr. he a' g.xxS
cornorale citizen” Iw making decisions that respect the orgam/at.on s rules anti pruee-
tlur'e-s; and a stage s'manager is likely to challenge organixauonal practices that he nr
sbt believer tr? he wrong.

Orgadixatjonal Constraints
The orgjauation it^ulf conitraiii?. decision makers. Managers, fur insunce, shape
cheir (lecisjons ro reflect the organi/ation’s pcrfornuiive evaluation and reward .system
and organizationally imposed time consimints. Prevdous organizadonal decisions also
art as precedenls to ton.strain current decisions.

Performance Evaluarion Managen^ are strongly influenced in ihcir decision mak-

ing by the criteria by which they arc evaluated. If a division manager believes that the
inanufaciunng plants under his responsibility are operating l>cst w'hen he hears noth-
ing negative, we shouldn’t be surprised to find ihat his plant managers spend a gwd
part of their time ensuring that negative information doesn’t reach the division bow.
Similarly, if a college dean heticves chai an instructor should never fhil more than 10
(wreent of her snidenU—to tail more reflects on the instructors ability in teach—we
should vvpeci diac new in^cruclors, who want to receive favorable evaluations, will
decide not to fjil too many students.

Reward Systems 'fhe organization’s reward system influences decision makers by

suggesting to them whai choices are preferable in tenns of personal payoff. For e.xanu
ple» if the organization rewards risk aversion, managers arc likely to make exjnsemrive
decisions. From the 1930s through the mid-19fi0s, (ieneral Moiopi cxmsistcntly gave
out promotions and bonuses to managers who kept a low’ profile, avoideil c’ontrovcrsy,
and were good team players. The result was rhat (LM managers became very adept at
dodging lough issues and pKissing controversial decision.s <m to coininittccs.

System-Imposed rime CoiiKrraints Organiiauons impose deadlines on decisions,

or instante, dejvaruncnt budgets need h) lie coinplcied by next Friday. Or the report
prrjduc'i development has to l)c ready for the executive conun it tee tn review by
le die munilb host ol decisions havx ro he made quickly in order to stay
ahead of the cx>mpeution and keep customers satisfied. And almo.st all important <kci-
sions come WIT explicit (leadlines. These conditions create time pressures on decision
mak^s and ohen make itdiflk-uk, if not impossible, to gather alt the infonnation they
might like iiefore having to make a final choice. 'I he rational model ignores the real-
ity' that, in oiyanizadons, decisions wme with cinic constraints.
 MMIMI OccWoa

Histoneal Precedents Rational detiMon making takes an unrealrsuc and inrabted

pirspctiJve, It views decisions os independent and discrete events. But that isn’t the
wav it is »n the real world! Decisiohs aren’t made in a vacuum. They have a context
in hc(, tndtvidttdl decisions are more iueumvly characterized as points in a nrem

Deewrons made in the past aic ghosts that continually haunt current choices.
For insftmet’, commirrnents mode in the past constrain current options. Tij use a srxdal
Mtuarnm as an example, the decision you might make after meeting “.Mr. (or Ms.)
Right* IS more ctvmpbcarcd if you're married titan if you’re single. Prior ctHumit-
—in this case, having gotten iiwrrlcd-^onstrflin yowr options. In a business
cttntcxu Kastman Kodak ii a guk>d uxainple of a firiii that has had hi live with its past
ini^itakes.’^ Starting in the early M>7ds, Kodak’s management concluded that the days
of silver halide photography were numbered. They predicted other technologies, such
as clectTonic photograjjhy, woidd soon replace it. But inste.ad of approaching the
problem deliberately, K<idak tiunagement panicked. They t(M>k off in all directions.
Aiul tt>dav» viiTiially ail of Kodak’s problems can lie traced to the decisions made and
nut made since then. (Government budget decisions also offer an illustrabon of our
point. It’s common knowledge that ihe largest deiennining factor of rhe size of any
given vears budget is last years budget.'" Choices made today, ihercfure. are largely a
resuk of cbnices made over tlic years.

Cultural Differences
The nitiunul model docs not acknowledge cultural differences. But Arabs, for
instance, dorvi necessarily make decisions rhe same way that Canadians do.
rherefore, wr need to recognize that the cultural background of the decision
maker can have significant influence on his or her selection of problems, depth of
analysis, the importance placed on Ingic and rationality, or whether organizational
decisions should be made uiitocraiically by an individual manager or wdlcctively in
groups.-^
Culnires, for example, differ in terms of time orientnnnn, the imporiar^ce of
rationality', their belief in ihe ability of people to solve problems, and preference for
collective decision making. Differences in rime orientation help us undersund why
managers in Egypt will make decisions at a much slower and more deliberate pace
than their American countetparts. A North American manager noghi make an
important dec i si on intuitively, bui he or she knows that its important tn appear to
poK’eed in a rational fashion because rationality i*^ highly valued in the West. In
countries such as Iran, where rationaliry is not deified, efforts to appear rational arc
noi nectsjjan'. Some cultures emphasize solving problems; others focus on accept-
ing situations as they ure. The Vmtrd States talk into the furnier category;
Thailand and Indonesia fall into the latter. Bccau'^c problem-solving managers
believe that they t*an and should change ^;ituations to their benefit, American man-
agers might identity* a problem long l>efore rheir I hai or Indonesian coumerparts
would chouse to recognize it as such. Decision making by Japanese manager? is
much more gruup-oriented than in the L nited States. The Japanese value confor-
mity and Cooperation. So licforc Japanese CEOs make an important decision, they
cxdlcxt a brge atwHint of infornution, which is then used in consensus-forming
grtMip decisions.
The iadivWuel in the «
ETHICS IN DECISION MAKING — -- ----------
xr .V enmhasirt vuou-h the im|M.rwnce today of consKkring vthifs in dedsinn
L-HL' UVVC airtadv addressed individual differ in our discusmn of morel
XSnienr Wt c<>nclu<k dus chapter by pre.ex.ung three d.flercnt ways that mdi-
d\«k frame deoMons and their nuphcanoi.s for managerial dexjsinn making
An incBsidwl can use three different critena tn making ethical choKes.-2 Th^
K die cnnnM. in which decisions are made solely on the basis of thei^
entenmes or omsequvnex.^s. 1 he goal of utilitarianism is to provide the greatest g^xxJ
for the ereatesi jnimkx nis new tends to dominate business deaston making. In
consistent u idi soak such as efficiency, prcxlutiiviiy, and high profm. B> maximizing
ptofits fi«r I usance, a business evenitivc can argue he is sccunng the grvatesi good for
the greaicsc number-^s he hands out dismissal notices to IS ixtrcenr of his employee,.
Another ethind criterion is to fuctes on ngArr. I his calk on individuak to make
decisions consisted with ftmdamcntal libcnics and privileges as set forth in d<x^-
ments such as the Bill of Rights. .An emphasis on rights in decision making meam
respecting and prowcring the Iwsic rights of individuals, such as the right to privacy, to
free speech, and to due process. For instance, use of this criterion would protect
employees who report unethical or illegal practices by their organization to the press
or govenuiient ageiides on the grounds of (heir right to tree speech.
A Uiird criterion is to focus on Jiutne. J’his respiiri's individuals to impose and
enforce rules fairly and imparti/illy so there is an equitable distribution of benefits and
costs. Union members typically favor this view. It justifies pay'ing people the same
w'age for a ^ven |ob. resaxdicss ot jxrrfrirniance differences, and it uses seniority as the
primary determinant in making lay ofl decisions.
Each of these three criteria has advantages and liabiliucs. A focus on utilitarian*
ism pniniotcs efficiency and pitHhictivicy; but it can result in ignoring the rights of
some individuals, particularly tliosc with minority representation in the organization.
The use uf rights as a criterion protects indhndiiais from injury and is consistent with
freedom and privacy’, but it can create an overly legalistic workplace that hinders pro
ductivtity and efficiency. A focu-s on justice protects the interests of the underrepre-
sented and less powcriot, but it can encourage a sense of cnntlernent that reduces ri^k
taking, innovation, and productivity.
Decision makers, particularly in for-profit organizations, tend to feel safe and
comfortable when they use utilitarianism. A lot of questionable actions can be jusfi-
fied when framed as being in the best interests of “^c organization'' and sKXzkhold-
ers. But many critics of business decision makers arnue that this perspective needs to
change. Increased exmeems in society about individual righis and social justice sug*
gesr the need for managers to develop ethical standards based on nunutilitarian cri-
teria. This presents a sol hl challenge to today’s managers liccause making decisions
using criteria such as individual rights and soc ial justice involves far mure ambipii'
ties than uung utiliunan criteria such as effects on efficiency and profits. This helps
explain why managers are increasingly finding themselves criticized for their
I pnees. selling products with questionable effects on consumer
heaidi. closing down manufacturing plants, lay ing off large numbers of emplovecS.
moving production < overseas to cut costs, and siiniiar decisions can lie pisrificd in
UQiitanan Umis. But that may no longer bv the stnek criterion liy which good deci-
stofls Miould he judged.
 K* •

Chapter 6 Individual Otci^iun .Making 91

IMPLICATIONS FOR MANAGERS

bhiivjJuak thiak and rtdson k-ffirt they act Thus, an understanding of

bow people make decisions can be helpful if wc are tn explain and predict their
behavior.
Under some dteision siluaticms, people follow the rauonal in<xJel. But for
nicest people, si nd most nonnuirinc decisions, this is probably more the exception
than the rule. Few iiiip<»rrant decisions arc simple oj- unambiguous enough for
the rational models assumptions to upply. So individuals look for solutions that
satisfice rather than opti/niiC, inject biases and prejudices into the decision
process, and rely on intuition.
Given die evidence wc’vc desenhed on how decisions are actually made in
organizations, what can managers do co improve their decision making? We offer
five suggestions.
First, analyze the situation. Adjust v^our decision-making style to the
national culture in which you’re operating and to criteria your organization eval-
uates and rew'ards. For instance, if you're in a txiuntry diat doesn’t value rational-
ity, don’t feel compelled to folfow the rational decision-making model or even to
try to make your decisions appear rational. Similarly, organizations differ in
tenns of the iiuportance they place on risk, rhe use of gr^ mps, and the like. Adjust
youi- decision .style to ensure it’s compatible w’ith the organization's culture.
Second, he aware of biases. We all bring biases to the decisions we make. Tf
you understand the biases inlluencing your judgment, you can begin to change
the way you make decisions to reduce those biases.
Third, combine rational analysis with intuition. TTicse are nut conflictmg
approaches to decision making. By using both, pm can actuaJly improve your
deewion effectiveness. As you gnin inanagerial exj’ierience, you should feel increas-
ingly confident in imposing your intuitive processes on top of your rational
anah'sis.
Fourth, don’t assume that your specific decision style is appropriate for
every job. Just as organizations differ, so too do jobs within organizations. And
your effectiveness as a decision maker will increase if you match your decision
sej'le to the requirements of the job. For instance, if you have a directive style of
decision making, you’ll be more effective working with people whose jobs require
quick action. This style, for example, would match up well widi managing stock-
brokers. An analytical style, on the ocher hand, would work well managing
accountants, market researchers, nr financial analysts.
Fmallv, try to enhance your creative tv. Overilv look for novel solutions CO
problems, attempt to see problems in new ways, and use analogies. In addition,
uy to remove work and organizzatinnal harriers that might impede your creativity.
 PART III: Groups in the Organization

CHAPTER 7 ___________________________________

Foundations of
Group
Behavior After reading this chapter, you should be able to

Differentidie between formal arid informal groups

Explain why people join groups

M

3. Describe how lole requirements change in different situations

4. Explain the impoitance of the Hawthorne studies

Describe the importance of the Asch studies

9 VI
A

Identify the implications of sod a I loafing

•

Outline the benefits and disadvantages of cohesive groups

CP
P

Explain the effect of diversity on group performarKe

•

Contrast groupihink and groupshitt

*

he behavior erf individuals in grou|is is .s<Knetbing more than the sum total of

T
fcrendy
ejcii acting in his or her ouTt wav. When individuals are in groups they act dif-
from when diey are alone. This chapter intToduces bask concepts about
groups and demonstrates how an understanding of groups can help explain the huger
phenomenon of organizatiunal behavior.

DEI'ININC AND CLASSIFYING GROUPS

A groi^) is defined as two or nioi’e iruhv-iduaJs, intcraciing and interdependent, who
come togeJict to achieve particular nhjecrives. (iroups can l>e cither formal or infor-
mal. By ibrmal, we mean defined by the organixa lions struemre^ with desisfn^ted wcH'k
assignments establishing tasks and work groups. In formal groups, the behaviors that
one should engage in are stipulated by and dirwled toward organizadunal gitals. In
Contrast, informal groups arc all rances that arc neither smictured noi orgunizadonaliy

1
 Chapter 7 Fnembtfooi of^oopBehtrior

defermmed. In the work environment these groups form naniraHy as respomei to the
need for social conracr.
hV possible to fortJier sulK-h^ifo groups inioajmmand, task. intercM, or friend-
ship tategones. Command and cask groups are dkmced by the fonnal organirjitjun,
whereas interest and Iriendshtp groups are informal alliances.
rhe cdftffihTftd is determined by the organisational chart, h is composed of
the suhordinaces who report directly to a given manager, ,’kn elementary’ school prin*
dpal and her 12 teachers form a coininami group, as Ho the director of postal audits
and his 5 inspectors.
Tafk groups, also (»rgarriracionally determined, represent persons working
together to tompkee a lob. Iloutver. a task groups boundaries are not limited to its
intmediare hierarchical Miperior. h caa crfxw command rclabonships. For instance, if a
colkgc student is accused of a cunpiis crime, it may require cominunicadon and coor*
di nation among the dean ol academic a^irs. the clean of students, the registrar, the
director of .security, and the student^ adviser. Such a formaiiun would consutute a task
P'oup. IT should be noted that all command groups aiu also cask groups, hut because
task griHi(K can cut acniss tlic organization, the reverse need not he true.
Pcojde w ho may or may not be aligned inu> common command nr task groqis
may affiliate to an a in a specific objective with which each is concerned. This is an
immft grt/up. F.mployres who band togctlier lu have their vacation scbeilule altered,
to support a peer who ha> been lireil, nrn> seek increased fringe benefits represent the
fiirrnation of a united body to fujxhcr ihcir cxnTimon interest,
(iroups often develop heenxse the individual members have nnr or more com-
mon characteristics. We call these formnnons fhcntisbrp grotipi^ Social allegiances,
which frequently e.xtciid outside the work situation, can be bxsed on, for ex ample, sim-
ilar age or ethnic heribigu. support for Notre Dame football, or holding similar polit-
ical view s, to name jnst a few such characteristics.
Iniomial groups protnde a very important luncuou hv sacislytng their niuiubers*
social needs. Because of inicractifwis thar result from the proriniity of work stations or
tasks, w’e find workers playing golf lugctlicr, riding to and from work together, lunch-
ing together, and sperxling their breaks around the water cooler together. VVt must
recognize that these types of imcractions among individuals, even though inibnnal,
deeply affccv dicir behavior and pcrfoiinajicc.
I'here Is no single ixnsori why individuals join groups. Because most people
belong to a number of groxijw, it s obvious that different groups provide differenr ben-
efits to tlicir iuemhci*s- Fxlbbii 7-1 sunnuan/es ibe most popular reasons people have

pining gnmps.

BASIC CROUP CONCEPTS

.1
•
The following review of IMSIC group conixpts builds on the lecognition that groups
arc not unorganised molw. They have a structure that shapes the bchavitn- ol diefr
members. ’•

Roles
bun CampbeU ts a buyer with Marks <k Spencer, the large British retailer. Iler job .
requires her to play a mimher of roles: that is, tn engage in a bci of expected behav-
ior panerm that are attributed to occupsnng a given piwiticai in a social unit. For
:Q,W«B io Ae
Why Do People Join Groups?
EXHIBIT
7-1

Security

lrd,«iun in . p.wp ri,a«.. .kwr<l .mpo^ot !«• .*huP.

SntiB provide; recogninon und s«cu» 10 members.
C^r^urx; pnwkk ,»ct»pk with fadings of vdf-wnrth. Thar
Stfifestectii is
in nJiiian to crKuexmg staiox i<« ihi>M; ciU^wie cM
membership can d^i giec iftcre»ca feeing uf wfw^ to
dn*
Affibadon pimp member* rhemsebxs.
<4roHM cm hilfin s..dal need#. PctipU enpy die regular
jmrracQon AMOHIH-; with gr.mp nKinbcnhip For .nary
pevpk. these on-thc-Mh mreractions arc their ponian*
Power source
fir fiiirxlling Their D4cds li* affiliation
OoaJ achivvcrRcniWhat cannot hr achieved uidividQ^lly ofren become*
posMbU
thrnugh gmupacnon, There is power in Tuxmhers.
k There arc nnics when il taL» more than one person w
accomplish a particular task—rherr is a need lo p«x^
talcfWS.
kni>wlc»tpe, or power in order to g« a job corapktesd. b
such
insujice, I.sura plays the role of a Marks & Spcacer employee, a member of the
instances, manapemrnr will rck on the use of a fonnal
headquarters buying group.
group, a member of the eost-iniprovemeiit task force, and an
adviser to die committee on diversity. Off the job, Laura (Lampbell finds herself in
still more roles: vife, mother, Aieth<xlist. member of rhe T.aix>r Party, board memlicr
ai her daughter's schcx)l, singer in the St. ;\ndrew’s Chapel choir, and a lucinber of
the Surrey womens soccer league. Many of these roles are compatible; some cTeate
conflicts. For instanre, a recent offer of a promotion would require Laura to relocate
from London to Manchester yet her husband and daughter want to remain in
Ixjndon. (.an the role demands of her job be reconciled with the demands of her
roles as wife and modi er?
Like Laura Campbell, we all are required to play a nuinl>er of roles, and our
behavior varies with the role we're playing, The concept of roles can help us
behavior at her soccer league match on .Saturday, for instance,
IS irfereni from her behavior when participating in a meeting of her cost-iinprove-
menc task force al w'ork—the groups impose different identities and expectations
on Laura.

T he undefiunding «jt role behavior would lx; dramaticallv simplified if each of

i» Chose one role and pla.vcd i( out regularly and consistendv. Unfortunately, we are
required in play diverse roles, both on and off n»r jobs. Different groups impose dif-
terent role requirements on ^K•op^c. And we can better understand an mdividuafs
‘J** person is plannp.
<BPef.nl the following conclusions’:
h«n^ ff end/K,"’"b^'''’ 'he sdmul. around
l«m.. d.e,r r<,l„ f,„„ while ml.., ,.f
 chapter? Foundations of Crroup
row’s lawyers will be influenced by watching the actions of atlwmew in .d/Zy MrBral
or Thr Pi-ame. People have the ability u, nhift roles rapidly when tl.ey recogniM
that ihv situation arid its demands clearly require major changes. (4) People often
experience n.le conflkl w hen compliance with one role requirement is at odds with
another. An increasing number of people, for instance, arc experiencing the stress
that Laura Campbell is experiencing as a result of trying to reconcile work and ftiin-
ilv roles.
So it you’re a manager, of what value is a knowledge of roles’ Wien you’re deal-
ing with employees, ii helps lo d^ink in terms of wbat group thcv’re predominantly
idcntifinng with at die titne and what l>ehaviori would be expected <if them in that
role. This perspective can often allow you uj more accurately predict the employee’s
behavior and guide you in determining how best to hantUc situations with that
employee.

Norms
Did you ever notice that golfers don't speak while their partners arc putting on the
green or that employees don’t eritidze their bosses in public? This is because of
norms. That is, there are acceptable standards of behavior within a emup that are
shared by the group’s members.^
Each group will establish itv own sei of norin*j. For instance, group norms might
dctcimine appropriate dress, when it’s acceptable to goof ofL with whom group mem-
bers cat lunch, and friendships on and off the iob. However, probably tlie most wide-
spread norms—and the ones -with which managers tend to be most concerned—deal
with performance-related processes. Work groups typically provide their members
with explicit cues on how hard thev should work, how to ger the job done, their level
ol output, appropiriatc communication channels, and the like. Tliese norms are
extremely pow’erftil in affecting an individual emploj'ee’s performance. When agreed
to and accepted hy the group, nonns act as a means of influencing the behanor of
gi’oup nicmbeTs with a minimum of external conrrols. Tn fret, it’s not unusual to find
cases in which an employee with strong abilities and high personal motivation per-
forms al a very- modest level because of the overriding influence of group norms diat
discourage members from pro<lucing at high levels.
A key point to remember about norms is dial groups exen pres.sure on members
to bring members’ behavior into conformin’ with the groups standards. If people in
die group violate its norms, expect gi’oup members to act to correct or even pnni.sh the
violation. This is just one conclusion directly attributable to findings in the
Haw-rhomc studies.

The Hauthume Studies Its generally agreed among bch^ivioral scientists that full-
scale apprecianon of die iinportiuicc norms pby in influencing worker behavior did
not <Kcur uniil the early 19305. This enlighiciimciit grew out of a senes of ??rjdies
undertaken at VVtsrem Electric Company’s Hawthorne Work.s in Chicago 1 between
1924 and 1932.^ Originally initiated by Western Fleciric officiaL and later overseen
by Harvard professor Elton Alayo, the Hawthorne studies concluded that a worker^-
l*havior and sentimenis were closely related, that group influences were sigruficant in
afiveting individual behavior, that group standards were highly eflcctive in establish-
ing individual worker output, and that money w as less a factor in deiermining worker
than were group standards, sentiments, and security. Ixri us briefly review the
Groups m the Qrjaniiaaoo
'1
1
I huth^rnc invx.ng.rio»s ...d d.mu»stn.u the tmpon-nce of these finding i, 4

beg.n hy ctaTiiining the relation I^W'een the phy^

iej envdronment and prrxinrtiviLy. Uhnnination and od.c^-orhng condinons were

<o represent this physical cns-in.n.ne.U, I he rescardicrs inmal findings ew.

mdkucd their annotated results- . . ri

They beg.in mth illumimrion cxpcnnients with varioiii groups of wotken. ITie
researchers nunipukted the intensity of ilhuiunadon upward and dnwward, while at
the same time nounc ch.>ngcs in group output. Resiiltn vaned, but one thing was dw:
In no case was rhe increase or decrcaM. in output in propewtirm to ±e increase or
detrease in illuiniiiarion So tlic researchers intrikhiced a control group: An experi-
mental group was presented with waiving intensity of lIlumTnatum, while rhe eon-
trolled unit worked under a constant intensity of ilbininaunii. ^VgaiUi the results were
bewildering ui ihc Haw-thomc researchers. -'\s the light level was increased in the
experimental nnit. output rose tor both the control and the experimental group. But
to the surprise of the researchers, its (he light level was dropped in (he expcriinenul
group, productivity continued to increase in both groups. In fact, a produccivix)-
dccrcasc was obscivcd in the experimental group only when the light intensity had
been reduced to that of iiuHHiKgln. Khc Hawthorne researchers concluded that illu*
niination intensity was onk a minor in Hue nee among the many that affected an
employee's productivity, but they could not explain the behavior they had witnessed.
Asa follnw-np to the illumination experiments, die researchers began a second
set of experiments in the rrlav assembl)* test room at VVc.siern F.kctric. A small group
of women was isolated from the main work group so that their lieha\ior could be more
caixfuUy obscrv’cd. They went about their job of assembling small telephone rcl3)*s in
a room laid out similarly to their normal department- The only significant difference
was the placement In the room of a research assistant w ho acted as an obsenxr—keep-
ing records of output, rejeits, working conditions^ and a daily log sheet describing
cvcrt’thing that happened. Observations nwering a multiyear perirx! found that this
small gryup^ ouipirr increasud sieadily. 'Hie number of jxrrsonal ab.scnces and those
due to sickness were approximately one-third of those recorded by women in the reg-
ular production department. What became evident was that ibis group’s perfomiiiiice
was significantly influenced liy its status of being a “special’’ group. The women in the
rest room thought that being in the experimentd group was fun, diar they w^ere in sort
of an elite gn>up, and thiU imnagemcni was concerneil with their in (crest bv engaging
in such experimentation.
.A third study in rhe hank wiring ohsen'ation room W’X$ introduced to ascertain
the cftect of a sophisticated wage incentive plan. The assumption was that individual
workers would maximize their produccivny when they saw that it was directly
relate^ to economic rew’ards. T he most imporrnnt fuuling coming out of this study
was that employees did not individually maximize their outputs. Rather, their output
^camc controlled hy a group norm Unit dciennincd what was a proper dav’s work-
Output was not only bring restricted, hut individual workers were gii-ing enoneo«>
reports. 7 he total for a week would check with the total week’s output, but the daily
reports showed a ^teady level of output regardless of actual daily production. What
was going on? *
In^meus determined that the gn.up was operating well below its capabilitv *nd
w« leveling output .n order to pn,te« icsell. Memhers were afraid that if the>- siifnifi-
 Chapter 7 Founrtatiorw ofGremp Beha
carri, incrca^ their -xitput thc^.t incentive rate would be cut, the expected d.Uy
output would he ...creascl byo^ ,n,ght occur, or sk.wcr worker, would be repri^
'f’ ■J'’* fair outpnt-neidwr too much nor too
i.rtle, I hey helped each other .n.t to ensure rheir rcpr.re were .tearlv level
I he nonns rhe group established included a number of “don'K/ IM= a rate-
r, turning tmi loo little work
Oari r [>f a squealer on any of your peers,
bow did rhe group enforce these nonns? Their methods were neitlter gentle
nor subtle. They included sai-casm, name-calling, ridicule, and even physical punches
TO the upper arm ol mcniber.s who violated the groupk nnrnw. Members would also
ostracize individuals whose Iwhavtor was against the group’s interest.
I'he Hawthorne .snidies made an important contribution to our understanding
of ^oup bchavior—panicularly rhe significant place tliat norms have in ilctermining
individual work liehivior.

Conformity «md the Asch Studies As a member of a group, you desire continued
acceptance by the group, so you arc susceptible to conforming co the group’s norms.
There is considerable evidence that groups can place snong pressure.^ on individual
members to change their a Lti tildes and behavioi3 to con form to the group’s standard.
Group influence was demonstrated in the now-classk Studies undertaken by Solomon
Asch.**
Asch made «p groups of seven or eight people who snr i n a chsaroom and wcw
asked to compare two cards held by the expcriirienrcr. One (*flrd had one line, the
other had three lines of varying length. ;\s shown in Exhibit 7-2, nne of the lines on
die three-line card u-as identical to the line on die one-Iinc

«
card. Also. as sliow'n

9
ExIn bit /-2, the difference in line length was quite obvious; under ordinary condi-
tions, subjects made errors less than one percent of the time. The object was to
announce aloud which of the three lines matched the single line. But what bapj^ens if
all the members in the group begin to give incorrect answers? Wil the pressures to
conform result in the unsuspecting subject (LISS) altering his or her answer to align
with rhe others? I har was what zKsch wanted to know. He arranged the gi’oup so that
only the USS was unaware that the experiment “fixed/* The seating was pre-
arranged so that the USS was the last to announce his or her decision.
The experiment began several sets of matching exercises. All the subjw^ts
gave die right answers. On the third set, however, die fij5t subject gave an obviously

EXHIBIT 7-2 Examples of Cards Used in Asch Study

u
>
 .is
g5«*‘ _ Grvuj* in the OrgtBioiOnn W
iA Part HI I jna “r" in Exhibit 7-2. The next subien gave
wrong answer-fhr until it got to the unsuspecting subject. He 1
same wrong answer. an< evcreorie had said “C ’ The decision confrjmQng
knew “B" -Jv sme « ,„hlicly that differs Irom the pte-
,he I’SS «as n > Or d„ .-.m give an answer that vou stn.ngly believe «
annonnved pos.non <d group members?
uK.’orrect in order d„iUstrated that over many experiments and
^.nvSs'ubiccts cwtormed in about .» percent of the trials d.at is, the ..hvxts
mZe;t. tho blew w ere w rong but that were consistent with rhe replies ol
can wc cnnck.de Irom this snuly? The results suggest that .here ate group
«m that pn.s us toward cnnformiry. We desire to be one of ±e group, a.ul
avoid Iwuie visibiv different. We can generalize ftntl.rr to say ihal when an mdivid-
ual’s opinion of obfeciivc data differs sigiiifKanily from Utat ol others ui the gr.n.p, he
or .die feels e.viensive pressure lo align his or her opinion to conform with those of ihc

olhers.

Cohesiveness
Groups differ in their cohesiveness; ihal is, the degree ro which members are
attracted tn each ixber and are mniiwed tn siaj in the group, For histance. some
work groups arc ctihcMve heranse the members have spent a great deal of time
togetiier, nr rhe groups sue facilitaics higher interaction, or the group has expe-
rienced external threats that have brought members closer together. Cohesiveness is
ini|)orant because it’s been found to be related to the group’s productinn'.-
Snidies consistrnth- show' that the relationship of cohesiveness and productivity
depends on the performance-related norms established by rhe group. The more cohe-
sive the group, the iiKire its meinliers w ill follow its goals. If pertbmiancc-rckccd
norms arc high (for example, lugh output, quality work, cooperauon w'ith individual.*
outside the group), a c<ihesi\'e group will lie more productive than a less cohesive
group. But if cohesiveness is high and performance norms arc low. productivity will be
low. If cnhcsivcncis is low and performance norias arc high, produerhntv increases,
but less than in the Idgh cohesiveriess-higli norms situation. W^cre cohesiveness and
pcrformancL'-relaterl norms are both low, there will he no significant effect on pro-
duerivin. These eonclusioas are summarized in Exhibit 7-?.
As a manager, w hat can you do to encoui age pxmp cohesiveness? You might try
one or more of die folknving (1) make the group smaller. (2) envxjuragc agreement
wirh gi-nup goals. (3) increase the time members spend together. (4) increase tile status
and tlw perceived difliculry of attaining membership in the group,
other groups, (6) give rewards to the group rather chan
to individual members, nr (7) physically isolate the group.

Size

Dws the site of gh.up affect the group^ overall behanor? The anst»-cr is a definite
tasks ’ndicates, for instance, that smaller groups are faster at completing
er«UDse..t,sk?T,t”"'^’' engaged in problem solving, however, large j
resuluinn ' ' tlieir smaller couiHerparts. Translating these J
-Wilts mto specific nonilicrs is a bit bazardotrs, hut we can offer «>me parameWfi. J
 EXHIBIT 7-^3 Relationship of Cohesiveness to Productivity

CohosiveneM
High Low
Alignment ef group and

Strong incrMse
organizational goals

Moderate increase
Hfgb in in
produceHty producttvf^

Oocrease ' No stgnifiant

Low in effect on
produccMcy productivity

LtJ^e groups—with a dozai or more members—are good for gainmg diverse inpot.
So if 6c goal of dw group is fecr-finding. larger groups should be more efVecrive. On
die other lumi smaller groups arc better at doing sumcduiig produenve with 6at
input. Groups of approximately seven members tend to he more eftecrive for taking
action.
One of the most important fuidiiigs related to 6e size of a group has i>een
labeled social losding. Social loafing is 6c tendency for individuals to expend less
effort when working collectively 6an when working individually. It directly chal-
lenges 6c logic 6at the pn>diicti\'iry of 6e gr<xip as a whole .should ar least wpial 6e
sum of the productivity of all 6e indinduals ui 6at group.
A ommon stercoty|K! JIKHII groups is that 6c sense of team spirit spurs individ-
ual effort and enhances the groups overall piixluctivity. In 6e Lire 1920s, German
psychologist Max Ringclinnnn compared the results of individual and group perfor-
mance on a rope-pdling rask.^ He expected that the gi-oup's effort would be equal co
6c .sum of 6c efforts of individuals within the group. That is, three people pulling
together should exert three rimes as much pull on the rope as one person, and eight
people should exen eight tinws as much pull. Riiigcbnann's re:»6tb. however, did not
confirm his cxpectadons. (Groups ot three people exerted a force onlv two an4-a-half
dines 6c average individual jxrrfiinnance. Group* of eight cuUeviivcIy achieved less
6tn four times 6e solo rate.
Replications of Rmgclmann’s research with similar ra.sks have generally sup-
poned his findings,'^ Increases in group size are inversely related to individual perfor-
mance. More may be better in the sense that the total productivity of a group of four
is greater than 6ar of two or three people, but die individual productivity* of each
group member declines.
Wliat causes 6is social loafing effect? It may be due to a belief 6ai o6crs in 6e
grrw^ are not carrying 6cir fair share. If you sec others as lazy or 6cpc, you can
recMablnh cquit)* b) reducing pmr effort. Ano6er explananon is 6c dispersion of
Rspomibiiic>. Because 6c results of 6e group cannot be attributed to any single
 Gnwp'inff’eOrgani^tion
. i,i« between an individuab input and the ^«ups output
person, rhe *^indtviduak mav be tempted to become •'free rider,"
effort- '
X .Lk ihar *d, « be ,„e..u.ed. ,

Composition ..
KX . ,^.u.n acnviries require a variety of skills and knowle.lge Given this reqnire-
went il wJul.l be reasonable ro conclude «ba. hcrcn.geneuus group^th.^e c«n.
; ^z^i«,n.iIar individuals--would be more likely to have diverse abilities and
Ermation and should be more elfective than homogeneous gn.i.ps. Research
studies generally substantiate this conclusion, especially on cognitive, creatnuy.
demanding tasks."'
WTien a group is dnxrsc in tcmis of personalities, gender, age, education, hint-
lional specialiMtinn, and experience, there is an increased probability tlut Ae group
will possess the nec.led characteristics to complete its tasks effectively. I he group
may l»e more coiiHict-ladcn and less expedient as varied positions are intnxlucctt a,Kl
assimilated, but rhe evitience generally supports rhe condiision that heterogeneous
groups perform more effectively than do those that are homogeneous. Ksbentially,
diversity promotes conflict, which stimulates creativity, which leads to improved deci-
sifffi making.
Uui uhiii abuin divenicj' created by racial ornarional differences? 1 he endence
indicates that ihcsc elements of diversity interfere MT th group processes, at least in dK
short termJ^ Cultural diversity' seems to he an asset on tasks (hat call for a variety of
viewpoints. But culturally heterogeneous groups have more difficult in karning to
work wiili each other and solving problems. The good news is chat these difficulties
seem to dissipate with time. While newly formed ciilturaliy diverse groups underper-
fnrm as compared wiih newly fonned culturally hcMUogcneovs groups, the differences
disappear after about tJiree months. The reason is chat it lakes diverse groups a while
to leam how to work through disagreements and different approaches to sohing
problems.
An offslujot oi the composition issue has received a great deal of attention by*
group researchers. 1 his is the degree to which members of a group share a ctwnmon
demographic attribute, such as age, sex, race, educational level, or length of senicc in
the organiiarinn, and the impact of this attribute on turnover. \Vc call this variable
group demography.
r organizations are composed of cohorts, w^hich wc define as a group
<jf indiv iduals who hold a contmon attribute. For uwtance, everyone bom in is of
nieans they also have shared roniriion experiences. People bom in
experienced the iuforinatjon revolution, but noi the Korean conflict.
People l>om m 1945 shared the Viernam War, bin not ibe Great Depression. Women
in U.S. organizations toiiay who were born before 1945 matured prior to the womcnV
•‘'ubslantiaily different experiences from women bom after
th nr <’'tHOgraphy, therefore, suggests that attributes such a.s ace or the date
nirn.*M ® ‘’pecific wxirk group or organization should help us to pmlie't
with dkiimir""’ *>H I’e greater among those
ni.wer«ri..«,r liecaiise cuiniiiiinicaiion « more difficult. Ci>nHjci and
I* ggles are more likely, and are more severe w hen thev occur, nie inereasd
9

,)
 Chapter 7 FoundauMs of Grnup

Bebavi.w

mal« group numl«rship less artracm-e, so employees B« more likely to nui,

.Aoutnumber of sn.d.es have sought to test di.s thesis, voluntarily

and or ,oX
the evidence is qnite
cnmirspng,' 1-or e.xaniple ,n depxn.nencs or separate work groups in which a larec
IKuTion ot members entered at the same tune, there is consideraWv more turnover
among th.,seoij«.dc this cohort. .AJso, where there arc large gaps between cohorts,
turnover is higher. People who enter a group or an organization together or at
jpptowmarely the same time, are more likelv to associate wiffi one another have a
similar perspccuve on the group or organization, and thus be more likely co stay On
the other hand, discnntimiines or bulges in the group's date-of-einrv distribution are
likely to result in a higher nirnnver rate widiin chnr gruup.

Stiitus

Status IS a prestige grading, position, or rank witliiii a group. It may lie formally
imposed by a group; that is, orgaiiizarionally imposeil, through titles or ameniues such
as “the heavt-weight champion of tlie world” or ‘‘most congenial ” VVe are ail lamiliar
with the trappings associated with high organizational staras—large offices with thick
carpeting, impressive titles, high pay and fringe benefits, preferred work schedules,
and so on. Whether management aekiuiwlcdges rhe existence of a status hierarchy,
organizations are filled with mrienities tliat are not uniformly available to eveiyone
and, hcncc, carry status v ilue.
.More often, we deal with stiinrs in an infonivdi seme. Status imv be informallv
acquired bv characteristics such as education, age, gender, skilly or experience.
Any tiling can have status value if others in the group see ir as status-c on feiTing. Keep
in mind that informal .sranis is not necessarily less imponant rh;in the formal variety.
Status hxs been shown to have some interesting eilecls on die power of norms
and pressures to conlbnii. For instance, high-status members of groups often are
given more freedom to deviate from no mis than are other group inenihcrs?** High-
status people also are better able to resist conformity pre.ssurcs than their low'er-scatus
peers. An individual who is highly valued by a group but who doesn’t tniich need or
care about social rewards the group provides is particular!cable to pay minima! atten-
tion to confonnitv norms.*
The prencus findings explain why many star achkres, famous actors, top-
perfonninff salespeople, and outstanding academics seem oblivious to appearance or
to the social norms that eonsu-ain their peers. As high-scams individuals, thet' re given
a wider range of discretion. But this is true only as long as the high-status persons
activities aren’r severely derrirnental to the achievement of rhe group’s
Its also important lor group members to believe ilint the status hierarchy JS
cquitabk- V\Tien incquiti' is perceived, it creates disequilibrimn that results in various
types of corrective behavior. • i> i
The concept of equity presented in Chapter 4 applies also to status. People
expect rewards co be proportionate tn costs incurred. If Dana and AJUIC arc e wo
finalists for rhe head nurse position in a hospiral, and it is clear that Dana as more
senioritv and better preparation for assuming the promotion, Anne u dl view ^he
tion <4 Dana co he equitable. However, if Anne is chosen because she is e t
tfHlaw of the hospiul director, Dana will believe an inpisrice has been cvmnutted.

*
1
fiml thcmselvvs in a <5»r«.Kion when They move between groups whose Matrix
critena arc different or when ilwy join groups whose members have hcierogenenus
backgrounds. For instance, business executives may use personal income or the
growth rate of their companies us tleterniinants of status, (lovemment bureaucrats
may use the size of their budgets. Professirmal employees may use the degree of
automiinv that comes with their job assignment. Blue-colbr workers may use years of
seniority’. In groups made up of heterogeneous individuals or when heterogeneous
gniups are forced to be interdependent, stilus differences may initiate conllict as the
group accempLs to reconcile and align the differing hierarchies, we’ll sec in Chapter
8, this can be a particular problem when inanagcincni creates teams made up of
employe e A freim across varied tun chons wnthin the organization.

GROUP DECISION MAKING

The belief —as embodied by juries—that two heads arc hertcr than one has long been
accepted as a bask ixmiponent of North American and many other countries’ legal
systems. This belief has expanded to the point that, today, many decisions in organ ira-

The Individual versus the Group

accountabiiity. You know who made the decision and, therefore, who's responsible for
the outcome. .Xccountahility’ b more ambiguous with group decisions. A third
stren^ of individual decisions is chat they tend to convey cunmyent values. Group
deciskins can suffer from incragi-oup jiower struggles. This effect is best illustrated by
decisions of the V.S. Congress. Decisions can vary by as much as IHO degrees tnxn
one session to the next, reflecting the make-up of mcnilwrs and their ahilik* ro influ-

Now compare the above with rhe strengths of group <kdsion nuking. (Iroup#
generau wore ampiftf .,.„l By aggregating the resources oJ «*•
 Chapter? J-oundaaansorOnroj.BehavHw
enl mdividuak. groups bmg njore input mro the decision pro«s,. In addition to
’'cwrogeneity to the decision process. They offS
r.rrr so more approaches and alrematives «„ he eon^detvd
’’Jmost always ontperfornt even the l«t
,n.hv,dual. So groups genernte de.;.io,., Einally. groups lead to
of,, sol„„^„ .Many decK.ons foil after the final choice is ma.Ic Itecanse peo-
ple don r accept the solution. <,rot.,. members, who particpatesl in makine a ded-
sum. arc mote likely to enihusiastically support the decision and e«toura« others to
accept It.
So MhJeh IS Ixuer—indindxMls or groups? The nhnvus cr is. “It depends "
l-here arc Uiiid M hen decisions ai-e best handled bv mdividnds. For exampk’ evi-
dence indicares tbai tudividualA are preferred M-hen the decision is rclutivelv unimpor-
cinx and doesn’t require suhorduutc commirmcnc TO its >ucre«. Siinilarly Jndividuak
should make the decision when they have suHkient infonnadon and wkn subordi-
nates u-ill be committed i<> the ouiCfitne even if they arrn’t consulted?’’
(X’erall. M-herhermdh’iduals i>r groups should make a decision essentially comes
down TO weighing cflecdvencss against e£6ciciiiT. tn xcniis of effectiveness, gnnips arc
superior. They generate more alternatives, arc more creative, more accurate, and pro-
duce higher-quality tlevisions ±aii <lo individuals. But indiriduals are more efficient
riian groujjs. Gp)up efficiency suffers because they txinsumc more tune and reMiutces
to adiieve their M>lution.

Grnupthink and Groupshifr

Two byproducts of groiq) decision mating have received a c*onsi de table amount of
attention by researchers in OB. These arc the ctjtu epes of groupthink and groupshift.
Gruupchink Have you ever felt like speaking up in a meeting, classroom, or infor-
mal group, but decided against ii? One reason may have been shyness. On the other
hand, you may have been a victim of gmupthink, the phenomenon that occur.s when
group members Ix-come $o enamored of seeking concurrence chat the norm for con-
sensus (werridcs the realistic appraisal of akcnuitive courses of action and the foil
expression uf deviant, minority, or unpopular views. It describes a tie ten oration in an
individual’s mental efficiency, reality testing, and moral judgment as a result of group
pressures?*^
How do y<}U know’ if a group is show’ing symptoms of groupthink? It tends to
exhibit four characteristics: (1) Ciroup members rationalize any resistance to the
assumptions they’ve made, (2) members pressure any doubters to support the alierna-
tivp favored h)’ the iiiaiorit}', (3) tt) give the appearance of group consensus, doubters
keqi silent alx Hit misgivings and even minim ire co themselves the inijxir rance of their
doubts. (4) the group interprets members* silence as a “yes” \’orc for the inaioriry.
The above sun|Homs lead to a number of dccision-maknig deficicnaes. Ulien
groupthink occurs, you’ll find one or more of the following: incomplete assessment of
the problem, poor infonnanon search, selective bias in processing infonnadon, timired
dev’clopmeni of alternatives, incomplete assewnent of alternatives, hiilure to examine
risks in preferred choice, anil failure tn reappraise initially rejected alternatives.
Studies of deciM(.« making »n C-S. government agencies have found
outcomes frequently preceded bv svinpioms of gn.»tiprhink. These outcomes inclutW
unpreparedness at Pearl Harbor in l<41, the invasion of Nonh Korea in the 195(k
the Bay of Pigs fiasco in the early I MWJs, the escalation of the Vietnam \\ ar. the failed
Rwcairhen haw . .,„i,esiv«K-a. '« Jeader^. behavu.r, its insulauon ftn.^
likely n. yi.rttw- the gf j;,[|^„. pierhodical deoMon-nvaking pmec-
cMitsider^ nme pr«^ • Jeeision-nwking group, want to mmimize th«
dores. Managers ujto - J ft p;,,, cohesiveness
JhTdo ^ur Lhesiveness can also discourage dissent, so
±Xs should lie vigihn.'whcn working with a cohesive group. Second managers
Zu d smxc for an open leadenihip style. This includes enc.umging ,ncn.lK-r pamci-
Zon refraining from slating ones opinion at the hepnn.np nt the meenng, c-ncour.
iing dn-ergent Opinions from aU group members, and emphasizing lhe iinporunee of
reaching a wise derision. Third, managers should avoid allowing the group tn detach
itself from external sources. Insulated groups tend to lose perspecQve and ohiectivin.
Fourth, managers need to downplay time constraints. WTien group mcmliers feel
severe time pressure to reach a derision, they resort to shortcuts that inevitably kad
to false or superficial consensus Finally, managers should encourage the use of
methodical .lecisioo-inaking procedures. Eollnwng the rational decision-making
pnx-ess descrilwd in Clhapter 6 will promote constructive critirism and a full analysis
of decision oprinns.

Groupsbift Comparisons of group decisions with the individual decisions uf mem-

bers within the group siis^est that there arc difTerenccs. In some cxscs, the group deci-
ricttis arc more caudous than rhe indindual decisions. More often, the shift is toward
greater risk.-^
XVhat appears to happen in groups is that ihc discussion leads tu a significant
shift in the pHirions of jnernbers coward a more extreme position in the direction
coward which diev were alrejidy leaning l>efore die discussion. So consenarive npeS
become more cautious and the more aggressive tvpc.s rake on more risL The group
discussion tends TO exaggerate the initial position of die group.
Groopshift can be viewed as actually a sj^rcial case of groupthiuL The decision
of the group reflects die dominant decision-making norm that deveJops during the
groups discussion, XATiethcr the shift in the groupV decision is toward greater cauQi»n
or more risk depends on the dominant prediscussion norm.
The greater occurrence of the shift row'ard risk has generated scv’cral cxpbna-
uons tor ibe phenomenon, b'or instance, ii’^y been suggested that the dtscussinn creates
T’ members. As thev become more comfortable w’irh each
other, they also h«o,ne bolder and more daring. Arguably, rhe must pbuMhIc expb-
nauon of rhe ^hift toward risk seems to be that rhe group diffuse.^ rcspcmsibiliQ.
cS '"k ’•vcoonwbilitv for the moiips ti.ui
SX Md
findings on groupshift? You Ui-wild
bers that the shift has initial position of the indhidiul men^-
whedwr a group will shifZrow^^^^^
prediscusaon inclinations. ^‘aution is a tunermn oi the members
 X

Chapter 7 FnmMab ofCStciap ftnlBiru

Selecting the Best Group Decision-Maki ng Technique

rhe jiMJ'ii cVimmon form of group dcci^ior making lakes place m face-ui-fec< inter-
xiing groups. But as our dtu ussbjn of groupihink defnnnsiraicd, interacting gruupv
often censor chcinscKe' and pressure individual nxinbcrs towani conformity (»f opin-
inn. B rd n si o ruling. the nominal group technique, and ck-ctrunic meetings have been
proph cd as w’ays co reduce many of the prohlcius inherent in the iradiuonal interact-
ing group-

Brainstorming Brainstorming is meant to OVCIXHUTH? pressures for conformity in

the interacnng group dial retard die develupaient of creative altcnutivc^. It does so
b\*uuliring an idc.vgincruuon process chai s|xcific.jlly encourages any and all alier-
natives, while withholding any eriucisin of those alteniati\*es.
In a typical hrainsiorming session, a hah-dozen lu a duicn people sit around a
table. The group leader suies ihe problem in a clear manner so it is undcrsuxhl by all
l»rricipajiK. .Memhers then ‘'freewheel” as many nlrernarives as they can in a given
length of time. No cririciMii is allowed, ami ill rhe iilfernatives are recorded for later
dbcus^ton and analysis. ‘Ihat one idea stimulaTcs others and that judgments of even
the most biz-'irre suggestions are withheld until later encourage group nieinlx’rs to
*ihjnk the iiniLsual."
Brainsiomung, hoxveirr. is mrrclv process for generating ideas. The follow-
A

ing tw’Q techniques go further by offering methods of jctiully arriving at a preferred

sulurion.

Nominal Group Technique The nuTiunal group restricts discussion or interper-

sonal cominiinicaunn during the decision-ma king process, hence the lenu nonunal
group tedmique. Group members are all physically present, as in a traditional com-
mittee nweting, but the nietiibers are required to operate independently, Spcciftcally,
die follow ing steps take place:

Members meet as a group, bur. before any dt^nusion wkes place, each meinlwr inde-
pendently writes down his nr her i<kas about vhe problem.
2, 'rhis silent periext is tbllnwed hv each xneinbei *s preferring one idea to rh« group.
Each member lakes his or her Uirn, E?ning round die table, preserring a single idea
until ah ideas have liven presented and reconkd (ty pica Uy on a flip chan or chalk-
board). No discussion takes pbr.e until all ideas have been recorded.
3. The group then disaisscs tfie ideas for thinty and evaluates them.

4. Each group nicmlicr sikndv and independencK* ranks the ideas. 1 he final decision is
(ieternuned by the uka ujUilbe highest aggregate ranking

The chief advantage of llxii technique is chai it permits the group h> meet for-
mally hut does not restrict independent thinking, a.s so often happens in the rradiiioiul
interacting group.

Electronic Meetings The most recent approach to grrnip decision making blends
the nominal group ctx'hnique with sophisticated computer technology'. Its called the
cicctrofuc meeting
Once the technology is in place, the concept is simple. I p to 50 people sit
<in>und a horse shoe-sh a f)ed tahic. empty except tor a series of computer terminal^
Issues are presentcil oi p.irticipants, and they type their responses onto their
 »—■ ->' - •••^ ''““■" ■” ‘ '^-
rion «rcen in Ju - ,,,etr,.nic mcetin-’s are ononymit>-. honesty,

; th/push of .1 kev on a participunfs keyboar.l. It also allow,

the screen for all W » because chitchat is dinii.
nrtcj'toioi; .font diL-ress, and .^any participants can ‘•talk" at once without

Stepping on one jiiothcrs rtx”^.

In order m accomplish work tasks, the individiKHs who make up an organi-

9Uidi>n are npinHy uniled inh> departments, wuub, cr.niminees or other fomis
of wort an /ups b addition to thebr formal groups individuals also t reatc infer
inal gnrt^ps ha<cd nn comnion interests or friendships, h’s imporUnt for man-
flgers to look at employees as members of a group because, in reality, group
behavior is not merely rhe sum of the individual behaviors of its members. I'he
group Itself adds an adcliliimal dimension to its members’ Tichavior.
How b it relevant to understanding group heha\nor to know that a
Maryland woman, for example, has tn reconcile her roles of ntoiher. .Methodbt.
Democrat, councilwoman, and police officer with the cin^ of Baltimore?
Knowledge of the role that a person is attempting tn enact can make it easier for
us to deal with the person, fcir we have insight into her expected behavior pat-
terns. Also, knowledge of a job incumbents role makes it easier for otliers to work
with her, for she should behave in wavs consistent wnth others’ evpeciations. In
other words, when a person plays out her role as expected, the abiitcy' of others to
predict her behavior imftroves.
Norms control group member behavior by establishing standards of right
or wrong. Knowing the norms of a given group can help us explain the attitudes
and be ha nor s of its members, (km managci^ conrrol group norms? Not coni-
pletely, bur they can influence them. By making explicit statements about desir-
able behaviors, by regularly reinforcing these preferred behaviors, and by linking
rewards to the aceepiancc of [xeferred norms, maxiagers can exert some degree of
indue nee over grcxip norms.
Should managers seek cohesive gi*ou|Wr The answer is a tpialiRed Jit The
quailficabou lies in the degree of alignmtnx between the group and the organiza-
tion s goals. M.uugers should attempt ro create work groups v\ hose goals are con-
sistent with those of the organization. If this is achieved, then high gniup uxJic-
sivencss will make a positive txiniribudan ro the gt i>Np\ perloniiaiue.
rhe impbeacions for managers of the social loafing effect on work aroups
are signiheant. When managers usecolleciivc work situations to enhance inoraic
provide means bv which individual efforts cm be
identihcd. h ihry don't, management must weigh the potenrial fosses in produc-
nvit) Irnm using groups against any possible i?ains in weaker .sadsthetioa.-- This
conclusion, however, has a Western bias, h’s consisteni with individualistic cub
res, sue as le ’ni^d States aiwl Canada, that are dominated hv self-interest.
cwIJecdve societies in which individuil, arc i.u.avated b>
gm p goals, her instance, in studies. otnparing eniphn-ees fn.ni rhe United
 I

Chapter 7 Founditions of Group BcH:ivi0r 99

Swws employees from the Peopled Rcpuhlk of China and Israel (both col-
lectivise snriecies), the OiineF*.* and Israelis slujwcd no propensity to engage in
social loafing. In fact, the Chinese and Israelis acnially purfonned better in a
group chan when working alone?’
J he managerial iroplicarions for group composition are related to staffing
formal gn*>ups and using groups to make decisions, lb increase the pcrfonnance
of workgroups, yon •ihould try to choose is members individuals who can bring a
dive Hie pcispective co problems and issues. But don’t be surprised if these differ-
ence ncgarivciy affect the group’s performance in the short term. Be patient. As
members learn rn work with their differences, the group’s performance will I
iinprmx.
I
Slams ineqilines witliin a group divert acrivity away from goal accomplisJt-
4
nienr .ind direct it row a rd resolving the mei| HI ties. When inequities cast, man-
agers may find that group members reduce their work effort, attempt to under-
mine die activities of the members with higher status, or pursue similar
dyshuictional behaviors. To the degree that a manager controls status accou-
trements, he or she should ensure that they are distributed carefully and tonsis-
tendy with status equity. Inequities are likely to have a negative niotivadonal
impact on the group.
Finally, if managers use group decision making, they should particularly ot
to minimi la groupthink. They <5hould encourage member input, especially from -1
those who are less active m the discassion, and avoid expressing their preferred
solution eariv in the group’s discussion. Managers might also want to consider

>j
V
4
"

.
one or more of the techniques presentee), such as bi'ainstorming or electronic
meetings, as a means to lessen pressures to conform.

•I*
Understanding
Work Teams
AftP*- reading this chapter, you should be able to
Explain the growing popularity of teams in organizations

Contrast teams with groups

HN-

Identity four types of teams

4. Describe riie role of work design in making effective teams

5. Explain composition variables that determine team effectiveness
6. Identify resources and other contextual influences that make teams effective
7. Describe process variables that affect team performance
8. Explain how organizations can create team players

heavy equipment, fn N94 tn ’iiimr ,v>. 's U'ed m trucks, tranors, and other
management ampkmented teams ro ^enl produetivitjz, E.ifnn-Aeroquip's
sometiuielbi-eTitpJoyeestoadn.sf-mxrfc’ assembly line, While ii took
are organized into more than SO team
nr participau i„ decisions dut were once m kl
rhf warns set iheir own scheduks spUre „. "’‘’'‘-’gPr'icnt—fur inscaixc.
calls on customers and dis^ipiinc member suppliers, make
team approach lu.s also hdped problems. .And the move to a
Beween IWt and 199V, resnonsp ti.„ achieve important conipain goals.
produCTivitj- and manufacn.ring outpuXwl?^’*'”" Iftprote.l W pcrtx.-M;
accident rates dropped by mor^ih,,,, b.,|f ’Hort; dun 50 (XMCVHI; anJ
 Chapter 8 L nderBcanrling*
Woti "Ifea
WHY HAVE TEAMS BECOME SO POPULAR?
1 hin>’ >^4rs ago, die dccisicm of companies such «s \ blw, Tovota, an4 C^eneral FOCMIS
roinrrociucc teams into their prodactnm procewes maik news because no one eke was
doing It. roday, just the op^K>ske the oi^aniz^cicn that use teams diat
has become new sworthy. Pick up almost -^ny business peri<Kiical today anti you’ll read
hoiv tcaras have become an cssenrbi part of the way business is being deme in coinpa-
nics such xs Genend IJeccric. AT&T, Hoebg, I lewktt-Packard, Motorola, z^pple
Cymputer, Shiseido, PtdEx, OaimlerGhn’sler EM Co., John Deere, Ausirahan
.Ijrlines, Johnson & Johnson. Shenandoah Life Insiuance C>>., and KlonJa Power &
Light. Evi.’n the world-famous Sail Diego Zoo has restructured its nudve habitat zoncis
aroond cross-tleparcmeuwl tearas. Tlic Center for the Stud> of Work'learns say’s that
tiO percent of Wfi companies now have half of their’ employees on leaiuk-
jfew do we e.xpbin die current popnlajnty of teams? 1 he evidence suggests dwt
[earns Q-pically outpertonn individuals when die tasks being done require multiple skills,
judgment, and e.’cperience.’ org'anj7.ations have resn-uctuicd ihcmsclves co com|>ete
more effectively and efficiently, they’ have turned to teams as a way to better utilize
einployre talents. Management has found diat teams are more llexiblc and responsive to
changing events than are tnidiiional departments or odier forms of permaneiu group-
ings. 'icams have the capability to (juiekly assemble, dejilny, refocus, and disband.
Bur don’t overlook rhe moTivationyl properties of teams. Consistent w'ith our
discussion in Chapter 5 of die rf»lc of employee invuivcjiitiu as a motivator, teams
faci]irate employee participatioQ io Operating dccksion^. For insrance, some assembly-
line workers ar John Deere are pair of safes teams that call on customers. These work-
ers know the products berrer than any traditional salesperson, and by traveling and
Speaking with iarmers, these hourly w’orkers develop new’ skills and become more
involved in rfieir jobs. So another cxplajiaiion for the popularity of teams is chat they*
arc an effective means for management to democratize their organizations and
iniTcase employee modvaiion.

TEAMS WRSUS GROUPS: WTiAT'S THE DIFFERENCE?

Groups and teams are not the same thing. In this section, ivc dclnie and clarify the dif-
ference betwLx-n a work group and a work team. In Chapter 7, we defined a gfvitp as
two or more individuals, interacting and interdependent, who have come together to
achieve particular objectives. A woA group is a group who interact primarily to share
informabon and lo make decisions co help one another perform within each member^
area of rcsponsibilin^
M’ork groups have no need or opjjonuniiy to engage in coliccbve work that
require joint effon. So their perfonnance is merely the sum of all die group mem-
bers* indindual contributions. There is no positive sjmergy that would tTcate an over-
all level of performance that is greater than tlic sum of the inputs.
A work team generates positive synergy through coordinateil effort. Their iudi-
'•idual efforts result in a level of performance that is greater chan the sum of those
individual inputs. Exhibn 8-1 highlights the differences between work groups and
wurk teajus.
These defininons help chrifo why so many organizations have restructured
*4jric around teams. .Management is looking for that posibve stmergy dwt
 fWt M G^w^ImheOrpnlttdwi
EXHIBIT t-1 Comparing Woric Groups and Wvk Teams

Work CMfiM
Work flroup>

Share inforrnaCon Gaal ► Collective perforrnerKe

*
Neutral (sofYiednes negauvej
- _ ___
» Individual and muual
Individual AccounwOHiiy

Random and varied

—
\ _______ _______ ______________

will allow their orgaruzadons ro increase performance. The extensive use of teams ere-
aiw die for aa orgaaiiauon LO generale greater outputs with no increase in
inputs. Notice, however, we siiid “potendaL” 'I’here is nodiing iniicrcnriy magical in

the cTcadon of teams diat ensures the achievcnienr of this posiuve synergs’ Merely

calling a gnatp 2 frrf/v doesn’t automatically inerejse its pertonuance. As well explain

larer in this cliupler, suAxessfu) or high-pei forming teams have certain common chai-

acicrisncs. If manageiucnt hojics to increase organizational {.lerforruance through the

use of teams, it must ensure that their teams possess these chai acLerisrits.

TYPES QFTEAMS . _

Teams can be classified on the basis of dicir objective. The four most common fiirms

of teams you're likely to find in an organizadfin are pr(?Z*&W“r6i/i’/rtg

itfttrk tfitw, iTvfs-fttncihrtal reatn^, a/tii vittaal teams (see Exhibit 8-2).

Problem-Solving Teams

If wc look back hi the early IQSOs, teams were just beginning to grow in popularity.
And the form most of these teams t<x>k was simiUr. They typically w'ere composed of
five to twelve hourly employees from the same department who met far a few hours

EXHIBIT Types of Teams

Frobkoi* solving S«lf-rTuna^4 Cross 4unc6onal Virtual

•»* Chapters
each week t- -'iscuss wjj-s oHn.pr..Mngqu.liry. cffidenq.. ami the nurk eiwiramrwnt.
\Vc caH (hc^ pi*obleni*$ohdiig teams,
ft, pn)hkrn^hf,Kj»tf renim. metnlxjts shiir,. ideas nr oHer Migg^tums on how Si
^ork pnx'cwcs an.l nwihixls cun lx improved. Rarclv. however, w these teams pven
lhe juchonn* ec» imil.jirnilU nnjUfiiKnt any of their Miggexled actions.

*
•
One of the most widely practiced appliraaons of prohlem-solving wains during
die f OHO* quahty circles. I besc are work teams of eight to wn employees and
supcHTMirs uho have a sharetl area of rcsptmMbility and meet regularly to discuss their
qvabty problems. Investigate ranges of the problems., and recoinniend soludnns.
Afanagement, however, npicaily retains control over the final decision regarding
tmpleiiicmatlon of the qua lit)- drdcs’ recouimcndcd solutions. Ibday. many organiza-
tions use problcjn-sulving reams, es^wcially a.s .a means for wking oui wajs t«j improve
qualin. deliveries, eliminate scrap, reduce accident rales, and ccnctalU cut costs.

Self’Managed W’ork Teams

Problem-solving teams were on rhe right track. Inn they duln't go far enough in get-
ting employees involved in work-related decisions and processes. I’hi.s deficiency’ led
to eMperimenution with truly autonomous reams diat could not only solve pnihlems
blit could also implement solutions and take lull responsihility for outcomes.
Self-managed work teams sire generally composed of 1(1 to IS people who uhe
on the responsibilities of their foniicr snpcTviMu^. "lypjcaily. diesc rcsponsibditicH
include collective cono-nl over die pace of work, detenninanon of work assignments,
orgonizarion of breaks, anil collecuvc choice of inspection procedures. Fully self-
managed wrirk teams even sdect their own members and have the members evaluate
each other’s perfonnanee. -As a re.siilT, supen isory poaoems lake on decreased impor-
lanceand may even be eliminated. The teams al die Eacon-Aeroquip plant in Arkansas,
described ar the opening of this chapter, are examples of .self-managed work teams.
Xerox. General VIutors. Goors Brewing, PepsiCo. Hewlett-Packard,
Honeywell, Al&M/Mars, and Aetna Life arc iust a few fimiiliar names that have
implemented self-managed work teams, Esiimates suggest that about 30 percent of
U.S. cmpbycrs now use this form of team; and among large firing, the number is

w
.
prolwbly doser to 50 percent?
Recent business periodicals haw l>cen diock-fuU of artides describing successful
applications of self-managed teams. For instance, executives at Power-Cable Corp., a
manufacturer of high-qualifV power tools, say sdf-nunagcil leains are largely rtsjxjn-
siblc for significant improvements in jinKlnct qualirv’ and generating millions of dol-
lars in cost sarings? Self-manatred teams are given credit for much of the success
Industrial Light & .Magic has had in dominating the business of visual digitalization.^
And W'L. (.iore & .Assex idtes. the people who make Gore- lex, attributes its continued
tm»wth, inno\*ution, and high pridiubihcy to oiyatiizing its murr than 6,200 employe-
ee* around selt-managed teams.
In spite of these impressive stories, a word of caution needs to l>c offered here-
fX’irrall research on the effectiveness of self-managed work tcaiib has not been
witormly pKitive.^ For example, individuals on these teams do tend to report higher
Inch of iub saris^ciitin. But, counter to conventional wiMlom, employees on self-
managed Work ceaiits seem to have higher aliscniecism and tumnver rates than tlo
^’•'phiyces working in traditional w’ori: smictures. Additional re?»earch is needed to
determine the s|*xific reasons for these findings.
 YM Part HI
Cross-Functional Teams a
Rc««.rh I.Ha .Minneajw.hs-b».sea .narkct-rtsvarch firm, had h«n hi«ort-1
;X r«,.iyx-d .n>und functional dcparu.w..«H but ^•mor managcnient cond„4ed
thct functional .lepartmunB weren’t mevunf the ch^g-ng necd^ of the firn,^
X« So managentert reorganized fiusto.n Research s 100 miployeys into
r.,, s ’ The idea Ixthin.l the teams was to haw every aspect of a cLents work handled
Jit bin Otte tea.n rather tl.an by separate departments The goal was to .mprove com,
municaiion and tracking of work, which would lead to mtreased producuv.ty and

more saMsfte<l dk'Ots.

Qi'^hJtn Rcscflrth’s reorgflnuation illustrates the. use ot cross-function^
teams/rhese are teams made up of cniplowes from alwucthe same hierarchical level,
but from diffcreni work areas, who cornc together to accomplish a cask.
Many organiz-niions have uj»ed horizontal boundary-spanning groups fot
decades. For example, IBM cixi^icd a large task force in the 1960s—made up of
empicjyees from across deparcmenb in the company—to develop its highly succea-ful
System 360. ?\nd a taskforce is really nothing ocher than a temporary cross-fiioctidnal
ream. Sundarly. zottf/nitim composed of members from aenws departmenrai lines arc
another example of cross-functional teams. But the popularity of cross-discipline work
teams exploded in die htc 1980s. For instance, all the major nutOTiiohilc manufacnir-
erj^—including 'Ibyota, Honda. Nissan. B.VIW, GM, Ford, and DaimlerChryslcr*-
currcnrly use this form of tram to cotirdinatc complex projects. Harley-Davidson
relics on specific cross-frnctional teams to manage each line of its motorcj'cles. 'I best
reams include Harley emp]oyce.s from design, irnntifacturing, and purchasing, as well
as representatives from kev outside suppliers.And IBM still makes use oi ten)|x>rary
cross-functional teams. Between November 1999 and June 2000. for instance, IBM’s
senior management pulled together 21 employees from among its 100,000 informa-
cion technology sulf to aunt up with recorn men dations on how the company can
speed up projects and bring products to market fa.srer?^ The 21 members were
selected because they bad one common characteristic—they had all succcssfrilly led
fast-moving projects. ’I*he Speed Team, as they came to be known, spent eight months
sharing experiences, examining differences between fast-moving projects and slow-
moving ones, and eventually generated recoin me ndations on how hi speed up IBM
projects.
Cross-functional teams arc an effective means for allowing people from diverse
areas within an organization (or even between organizations) to exchange informa-
tion, develop new ideas and solve problems, and coordinate complex projects. Of
course, cross-fiuumonal teams are no picnic tn manage. Their early stages of dcvekip-
meiK arc often very unie-consuming as members learn to work widi diversity and
complexity It takes time to build ti-usi and teamwork, e.specially among people froni
dirtcrcnr backgrounds, with different experiences and perspectives.

Virtual Teams
rhe previous types of teams do their work facc-io-frce. Virtual teams use computer
ttchnolo^ t<> Ge together physically dispersed memhers in order co achieve a coin-
mon goal. • I hey allow pc’uple to collaborafe. online, regardless of whether they’re
only a rrxiin apart or separated hy condnents.
nwla? things that other teams do—share informauoit, J
nuke dtciMons. complete ca.Hks. .W tho vun include member, all from the se« .J

Li'
 Chairter I l^pcknundiutf "Uaim
«r link an orj^nizutionk mcmbeni w.th u,.,,k,)ves fwm other or«naa-
mms (c.go suppliers ninl p^nt partners).

n ,h <-’’ '■■"'« J --text,

.nd (5) the ahtl.n ,o .Avretunv rime a„d „,nstn,int^. 1„ face.to.f.ce o.nverH?-
tioo. ,Kopk- O.U. ^raverlMl (tone o voitv, inflection, vt.ue vnlome) and nonverbal
(eye .nove.nent f.u.al vxpre.sston. Jun.l gestnrv., and other iMuly langoatte) cueK
These help ebnfy c...nnn,n.eat,.^n. ho, aren’t ovaiLhle in online ittieraciioni. Virtual
teams ..hen so er from k>s sou;, I n.ppori and k-.ss direct intencuu. among memt.en
They aren r able h. dnpheate the nor.nal give and t.tke of laee-to-free diseussion
Especially « hen menilx.rs htiven’t pers..nally ,net. virtual teams tend to be ..Hire task-
oricntnl and exchange less stKul/enioiional inFoniution. Not surprisingly virtual
team inernlK-rs rejx.n less satisfaction u.,h the group inu-raci.m pneess than do face
tn-frix teams, finally, virtual tc.ims are able tn do their uork even if members are
thousands of miles apart and separau-d by a dozen or more time zones. They allow
people to svork together who might otherwise never lie able to c<ilbhoratc.
Companies such as llewletl-PiKk.vrd, Boeing, Ford, VeriFone, and Royal
DHti-h/.Shell have become heavy users of virtual tcairw, Verilhine, for instance, is a
Califiimiii-lwstd maker of aimpuienzcd .swijic machines that read credit card infor-
mation. Yet the use of virtual teams allows its S,tiIW employees, who arc located all
around the globe, to work together on design pn.jects. inarkcling plans, and making
sales prcseiitatitins. .Moreover, VeriFone has found that virtual teams pnivide s-mmg
recniiting iiidiicemenis. Says a VeriFone vice president, “We don't pul relocation
reiiuircincni.s on peojiie. If a person enjoys living in (Colorado and can do the job in
virtual space, we'iv not intimidated by tliat.

CREATING EFFECTrVT TEAMS

Recent studies have taken what was once a venrabic laundry list ofcharactcrisrics and
organized Utein into a relatively focused model.Exhibit K-.l summarizes what we
cunvnily kn.iw alxiut what makes teams effective, .As you’ll see, it builds on many of
the group concepts intntduced in ( Jiaptcr 1.
The key toinponciiLs making up clfcciive teams can he siilisiiined into four gen-
eral c.itegnrics. The first category is v^-ork tiesign. The second rclatc.s to the team’s
(wnpfh-itioii. Third arc the resources and other ioiirexttu/l influences that make tetinw
effective- Finally, pivceis variables reflect the things that go <iti in the team that inHu-
cnce effeclivcness,
What does effMizenrsi mean in this model? lypically this has included
objective measures of the ttam’i prodiicUvity, managers’ ratings of tite teamV perfor-
mance, an.l ac^regate measures of member satisfaction.

Work Design
The work-design category includes variables sucli as freedom and autonomy, the
opportunity to utilize different skills and talents, the ability to eoinpleie a whole and
'dennfiabk task or product, and working on a task or project that has a subsiannd
impact ,« others. The evidence indicates that these charade, .sues enhance men^
motivation and increase team effectiveness.'’ These
'^te U«use they increase members’ sense of res,x,ns.bility and ownership over the
*«rt and het-a«; thev make the work more interesting to pcrt«.nii.
4
M PWrtttI Gruune in the OrgeflizetMn

eXHierr B-3 A Team EffectiwneM Model

c VVoHc dewgn
• Aucenofnx

•
r t-
• Tok identjcx
• Tok slffWicance

Compose don
»AbJkty
* Pertorulity
I * Roles and diversity
* Size
I ♦ RexibiMty
• Preference for teamwork
____________ _Z_ ___________ /

Context
« Adequate resources
»Leadership
• Performance evaJuadon

Process
• Common purpose
" Specific goaJs
I * Team etfieaQ
■ Conflict
< loa/jnf

Composition
I his category includes variables that relate to how tcants should be staffed. In this sec-
oou, 've’ll address the ability and personality of team members, allocating roles and
diversity, SIM of the team, member flexibility, and members’ preference for teamwork.
AbiUries of Members To perform effectively, a team requires diree different tjpes
of skills. First, it needs people with €.s/)ert«e. Second, it needs people with the
prebUffi-solving and dedshn-makinf^ sktfb to be able to identify’ problems, generate
ahematives, evaluate chose alternatives, and make competent choices. Finally, teams
need people with good listening, feedback, conflict re solution, and other ruterytTj^*^
skills.
No team can achieve its j^erfonnance potcndal without developing all thr<*
types of skills. Fhe right mix is crucial. Too tnuch of one at the expen.se ol od>er^
result in lower team performance. But teams don't need to have nil the cuinplemen*
ury ^ills m place at th«r beginning. Ifs nut uniominon for one or more member to
take respjn$ihi)it>' to I cam the skills in which the group is defleient, xherebt* alh’**’tng
the team to reach its full potential.
 Chapter I Vnderm^ng Worit Term
in Ch.p«r 5 that pervvn.lit, Jus a Mgtnfeant mflu-
A,a,.J- of the d.men«on, uknnfied m tl.e B.g-Fiv^ pe.^onaUtj nu^id h.n. proved to
be .vle^ant to re«m e^cnvene«. Spvat.eally. tea,.., ,1.,^ „.e higher in .nvan kvek”
ettro.crs.on. aerreeablencss. consc.vnnousncss, and e.nodrmal stahil.n tend to recenx
hi^h^r manager J aJ ratings fur warn peiforjnajicc?*
(ntcx-esongly. the evidence .ndiv-ates that the vanat.t* in personaliu characteris-
tics ...ay he more unpomnr that, the mean. So, fi.r example, wldJe a higher mean level
of consaenuousness on a team .s desirable, tuixinp b,«h conscientious and not-so-
«»«KiiB0M5 mcmUo. ren.E to lower performance. This mat be hewuse members
who are h.ghly tonsc.ennous not only .nust perform d.eir o«-n' usla hut abo ,KTform
or re«io the tasks of tess-conscienijous members. It mat also be because these differ-
ences lead to feel.ngs of contr.buiion iftequity. Another interesting finding related to
peiMMMlin- rs diac “one had apple can spoil the barrel." A single team tnanlwr who
lacks a iniiunnl level of. say. agreeablenea, can ticgaTivcIv affect the whole team^ per-
fomuuicv. So including just o.,e person who is tow on agreeablcness. conscietidoos-
ness, or cxtro.crs.on can result in strained internal processes and decreased otxraD
perfom>ancc.

Allocating Roles and Diversity leaiiis have diffrreni needs, and people shtmid be
selected tor a tcani lo ensure that there is diversin^ and that all various roles are filled,
We can idcncify nine ix>tcndal team roles (see F.xhibit K-4). Successhil work
teams have people ro fill all diese roles and have selected people to play these roles
based on their skills and preferences,^* (On many teams, individuals will play multiple
roles.l .Managers need to uiidtrstand the indiv idual strengths that each person can
bring to a team, select members w’ich their strengths in mind, and allocate work
assignments that fit with members' preferred styles. By matching individual prefer-
ences with team role demands, managers increase die likelihood that the team mem-
bers will work well together.

Sire uf Teams lite most effective teams are neither ven* small (under 4 or S) or
very large (over 12). Very small teams are likely to lack a diversity’ of views. Rut when
tcanb have mt ire than atxmt 10 to 12 members, it beexjmes difficult to get much done.
Group members have trouble interacting constructively and agreeing on much; and

EXHIBIT S-4 Nine Team Roles

< ------------------------------------ -
Creator*Innovators: liiiudte itejuve ujeis
Explorer* Procnoteru Chunpkm idvas alter they're
inidatetl
AsiCMor*Developers: .\nal>*zedeaiiian optiims
Thrusier^Orgaftiiers; Priwirfc ’itfmmrt
(Omtnaicr-ltupcctunu
oodudcr-Producers:(‘hevk
Provide direvti<wi and
ftkrikiaiU
Mliv**Khrough
LphoUcr'.Mainuiaers: external betrles
B^poeter-Advisers: Seek fell uifeniutkm
tjikefs; Coord mate and iotegnir
D| bndpenn««iOA<tf
Sow. C M—BM» ma 0 MeCww. WWWSCB-lftCifl/i ton
MfhWMn RHIMOMIV. 2001. WMW* WBWBpn P*«* "* «»•’«*
 1

Qruops in dK Orgamraiioo
. k.... ..f neoule usually can't develop the cohesiveness, tirniniitment,
Urge |,i^ necessorv to achieve high pertbniiance. So in designing efU^.
^h..uhl Kem dK-m in the of J to 12 people. If.
iLiig unit is l.irger and you want a team efton, consider breaking die g,o„p

subtetms.
Member Flexibilin Teams nude up of flexibk individuals have memhen who QQ

Lximpletc e;K-h othe. \ tasks. This is an ohv.nvs phis ro a uaiu bccau« it

imnwvcs it< ncUpwhility and makes i( less relianr on any single member. So scltscting
menibgrs who rhem^lves value flexibility, then cTcwsarammg them to dr. each aihcft
jobs shuUd lead to higher team perfomwiicc over umc.

Member Preferences Kot e\cr>’ employee is a team player Given the nptuRt many
employees will sckci themsebes cwz of team pAW ci pation. VMwn |>euple who WQUIJ
prefer\n work alone are mpired to team up, there b a direct threat to the team’s
morale. This .suggests that, when selecting team members, individual preferences
should IK: considered as well as abililics. personalioes, and skills. Iligh-jicrforTnmg
teams are likely to be composed of jwopfe who prefer working as part of A group.

Context
The three ixmiexiual factors that appear to be most significantly related to team per-
lonnance are the presence of adeijuate rcM.urces, effective leadership, and a perfor-
mance evaJuadoo and reward system that reflects team contributions.

Adequate Resources Work groups arc part of a larger orgamy.ation system. A®

such, all work teams relv on resources outside the group co sustain it. And H scarcih’of
resources directly red nix’s the a hilit\' of the team to perfonii its job effectively. ;\s one
$ei nf r^earchers concluded, affcr looking at 13 factors potentiallv related to group
performance, “perhaps «vnc of the most imporunr vharactensnes of an effective w ork
group is the suppirr rhe group receives irom the organize non.’'*** This includes sup-
port such ;^s timely inform anon, technology, adequate staffing, encourageineni, and
administrative jssiswnce. 'Icanis must receive the necessary support frttm nuna^v-
menr and die Int^er organization if tliey are going to succeed in achieving their goals.
Leadership and Structure Team members must agree on who is to do what anJ
ensure that all mem tiers contribute equal I v in sharing the workload. In addition, the
team needs to dcirrnxinc how schedules will he set, what skills need to be developed.
t luAv the group will resolve conflicts, and huw die group will make and niodife deci-
sions. Agreeing on the specifier of work and how they fit touvther to integrate indi-
vidual skills requires team leadership and structure. This, incidentnllv.can bepnAided
directly by manngemenr or by die ream meinl»ers themselves as they fulfill ]>n>inurcr.
sirganizer, prcxlucer, nuiiuuaincr, and linker roles (refer hack to Exhibit 8-4 >,
I leadership, of course, iui’i always needed. I'or instance, the evidence irtliv^t^^
dut sell-man aged work reams often perform better titan rcam.s with furiuaHy
appointed leader^?*’ And leaders can obstruct higli performance wheji they inicrfe**
ui self-mamginp teams. On vlf-nunatred teams, team members absorb nuns afdi<^
dunes Upically assumed by managers.
Perf«»iTOance EvaJuation anti Reward Systems I Tow do you ^ct tcatn nicmhers ro
l»e both indo,dually and jointty atxountabk? I hc traditional, mdinduailv orivnuJ
evaluation and reward system must he modified to reflect team performance.
 Chapters Understanding Work Team
Individual l«rform»«ce evaluations, fixed hourly wages, individual incentives,
and rhe like are nw consistent with the development of high-performance wams. iCj
in addinnn ro evaluating and rewarding employees fcir dicir individual contributions,
management .should consider group-based appraisals, profit sharing, gaii.sharina
siiiall-gn>up metnuves and other system modifications tharwiU reinforce Kam effort
nrid coimnitmenT.

Process

The final category related to Kam effectiveness is process variables. Process variables
include memlier coiTiiniTrnent co a common piiqjosc, establishment of specific- team
goals, Kam efficacy, a iiiaiiagcd level ofconflicr, and the redtieuon of social loafing.
A Common Purpose Effceiivc teams have a common and inctLningfiil purpose that
provides direennn, momentum, and ciimmitmciii for mejiibcrs. This purpose i$ a
Vision, h’s broader chan specific guab.
Members of successful teams put a cremendous amount of tiiiie and effort inixi
discussing, shaping, and agreeing on a purpose that belongs to diem both rollectivefy
and individually. TIiJs coniinon purpose, when accepted by die team, becomes the
equivalent of what celestial ni^vigadon is to a ship captain—it provides direction and
guidantte under any and all conditions.

Spedfic Goals Successful ceanu inuisiate their common purpose into specific, mea-
surable, arul rcalistTc pcrfiirmance goals, Just as we demonstrated in Chapter 4 how
goals lead individuals to higher performance, goals also energize teams. 'I Lesc specific
goab facilitate clear coniiminitration In addition, they help leanis maintain dieir focus
on results.
Also, cousbtent witli tfie research on individual goals, team goals should he chal-
lenging. Difficult goals hare been found to raise team pcrfoiinaiicc on tltose criteria
for which they re set. So, for instance, goals fnr quantity tend to raise quantity; goals
for speed tend to raise speed, goals for accuracy raise accuraev, and so on.

Team Efficacy Effective teams have confidence in themselves. They believe they
can succeed, Wu call this tcaw ef^cacy.
Succe^?. breeds success. Icams that have been suewssful raise their beliefs about
future success. This, in turn, motivates them to work harder.
What, if anyThing. can management do to increase team cfFicacy? Iwo possible
options are helping die team co achieve small successes and .skill training. Small suc-
cesses build team confidence. As n team develops an increasingly stronger perfor-
mance record, ir also increases the collective belief chat future vlforrs will lend to suc-
cess. In addition, managers should con^dcr providing n*ainkig to improve mcnibers'
technical and interpersonal skills. The greater the jbilirie'i of team menibers, the
greater the likelihood that the team vnll <ievetup confidentx and the capability to
deliver on that confidcn«.

Conflict Levels flonflicr on a team isn’t necessarily bad. .As we’ll elahorace in
Chapter 12, teams that are completely void of conflict are likely to become apathetic
and stagnant. So ccmflici can acnially improve team effectiveness—but rot all types of
conflict. Relationship oinflicts—those based on interpersonal incompatibNities. ten-
won. and animosity tuward others—are almost always dy'sfunctional. However, on
team* perfiifming non routine activities, disagreements among members about task
■w
G(WiHinthcOrf[>n.Mlion 1
, I,rd rask ennflicu) is detrimental. In fart, it^: often t>eneficial beawe*-■
wnteni J , «roupthink. Task tonfticts suiiwlate divu«ion, pro.nott ,

iZXns will IK charartcrized by an appn,prnKe level of eonflia.

loafine We learned in Chapter 7 that individuals can hide imide a gnMip.
can cnX in s«K.-ial loafing and coast on the group, etfort bemuse their indi-
vidual o,nmbutions can’t be identified. Effeedve reams underm,ne this tendency by
Sing dicmselves accountable al both the mdiv.dual and team levels.
Succcsshd teams make members individudly and |ointiy accouiuahlc for the
team’s purpose, goals, an.l anu-oach. They arc clear on what tlicy arc ,ndivicb,li,
rcs|wnsihlc for and what they are joinrly rcsponsd.le fur.

WRNING INDIVIDUALS INTO TEAM PLAYERS

To this point, we’ve made a strong case for rhe v^lue and growing popularity of teains.
Bur many people sue not inherently “team players.’' They’re loners or people who
want to lie receptized for their indhidual achic\*emcnts. There arc also great many
oTganizaiitw that have historically nurtured individual accomplishments. They hate
created competitive work environments in w’hich only the strong survive. If these
organi/jjnuns adopt teams, what do they du about the selfish, “I-havc-to-louk-out-
lor-nic” employees that they’ve created? .And finally, as wc discussed in C-haptcrl,
countries differ ux urms of how they rate on individualism and collectirism. Teams fit
*
well with countries dut score high on colkcrivism. But what if an orgaruzadon wants
co intrmhice teams into a work popuhtion that is made up largely of individtiab bora
and raised in a highly individualistic socicT}-? .As one waiter so aptly put it, in describ-
ing the rok of teams in the United Slates' “Americans don’t grow up learning how' tu
function in teams. In schuol we never receive a team report card or learn the names of
the team of sailors who traveled with Columbus to America.This limitation would
be just as true of Canadians, British, Australians, and udiers from highly individualis-
tic societies.

The Chulicng
T
I

1 he previuiLs points are meant to dramatize that one substantial barrier co using work
teams is individual resistance. An employee’s siicces.s is no longer defined in terms of
indindual performance. In perform well as team members, individuals must be
honesdy. con front differences and resolve conflicts, and
subhrnatc personal guals for rhe g«x>d of the leain. For many employees, this is a diffi’
cu t —sometimes impossible -tat>k. The challenge of creaiing ream players will be
^atest where (1) the national cultuiv is highly individualistic and (2) the leanu arc
ing inircxluced into an established organization that has historically valued indi^’id"
ua at lewment These condirions descril'w. for instance, the siniatiun that faced
managtrs at AT&T, turd, Motorola, and odier large U.S.-based companies. These
irnis pr<^|)ered by hiring and rewarding corporate stars, and they bred a compedd'’e
encouraged individual achievemein and recognition. Employ ees in ihe»
*

<5 nns can be jolted by this sudden shift 10 the importantly of ream pla^. .A W
eran employee of a large company, who had done very well by working abi*.
 Chapter 8 Undenshinding Work Teams
ni
desenbed the experience of joining a team: “I’m 1r. . .
negative jjcrfoniunce appiaisal in 20 vears.”*^ * «5Oii. |uac had my first
On the ^ler hand, the challenge for management is kss demanding when
teams arem trod need where employees have strong collectMst values^uch asl"
Japan or Mex:co^r m new ergan.^tions that use teams as their iniiril form for
structuring work. For m.taiiee. most U.S. doc-com e-husiaesses^h as
.^nazon.com. eBay travdocity.com and bigw’o rds-make effective use of teams. But
they re rchovely new compares and were designed around reams from their incep-
tion^ Even-one m d»«e companies v^ere irunally hired with the buwvledge that th«
would be worfong m teams, and the uhilicy to be a good team player was « basic hiring
qualincatmn insit an new employees had to meet. ®

Shaping Team Players

The following swinraartees the primary’ options raaruguTs ha\x fo

mnng to mm indi-
^iduals into ream pfevers.

Sekction Some jienpic already possess the interpersonal skills co he effective team
pla>^rs. VVTien hiring team members, managers should take tare to ensure that candi-
dates can folfill their team roles as well as having die technical skills required to fill the
job?-
Many job candidates, especially those socialized around individual contribu-
tions, don’t have team skills. W’hcn bleed with such candidates, managers basically
have three options. The candidates can undergo training to “niakc them into team
players." If this approach isn’t possible or doesn’t work, the other two options are to
place rhe candidate in a unit widiin the organizacon that doesn’t have teams (if one
exists) or don’t hire the candidate. In established organizanons that decide to redesign
jobs around teams, it should be expected that some employees will resist being team
players and may be untrainable. Unfortunately, such people typically become casual-
lies of the team approach.

I'rainuig On 3 more oprindsiic note, a large proportion of people raised on the

imporlance of individual accoTTiplishtnenT can he trained ro become learn players.
Training specialists conduct exercises that allow employees to experience rhe satisfac-
tion that teamwork can prosdde. 'ITicy typically offer wwkshops to help employees
improve their pr(jblem-solving, communication, negouation. conflict-managem ent,
coaching, and group-development skills. Emerson Electric’s Specialty Motor Dirision
in Missouri, for instance, hxs achieved remarkable siKx ess in getting its 650-mefnl^er
workforce not only to accept, but tn welcome, team uaining. Outside consuhants
were brought in to give workers practical skills for wTjrking in teams. After less than a
year, employees t:nAusiasnc:flly accepted the value of teamw’nrk.

Rewards The reward sy'stem needs to be reworked to encourage cooperarivc efforts

rather than competitive ones, hot instance, Lockhced-Alarrin’s Space Launch Sy^tetns
Ojmpany ha.s organized its 1,400 employees into teams. Rewards arc structured tu
to the team members a percentage increase in the bottom line” based 00 the
M'hievemcnt of the team’s jjerfbmunce goals.
Prejmimons, pay raises, and other ftirms of recognition should be gix*en m indi-
^iduak for how effetrive they are as a c^illaborativc team member. Ihis doesn t mean
r

dwt individual umiribution is ignored: rather, it is balanced with selfles.s contributiurw

 i '. /*
Gpoopitn theOrginiMti”'’ a
Mt IN
to Ae tcm F.M»n,ple.^ of behaviors A.t shotild be rcward«l mebde training newer*.

Ua«er:h™ ring infnrmn. ion -iA reammates, hdpmg resolve team cnnflKi,. ami 1
teAi new skills dull >-mir team needs bur in which ITS . ctiaent- f
Lastly don't foqjet the intrinsic tewanis dut employees tan receive fnwn tan,. 3
work Teaim prondc «wn«raderie. Its «c.tine and satisfymg to he an integral part of 7
a succes-stbi team. The opportunity to engage in jK-rsonai (ie.velopment and to hdp
ceanunares crow can be a very satisfying and rewarding expenente for employees.
IMPLICATIONS FOR MANAGERS

Few trvjut$ h^ve influenced jobs as intivh as the massive raovciiiunt to intro,
duce teams into d»c workplace. The shift from working alone to working on
teams require employees to co<)pcrate with others, share infunnation, confront
diffcreoees, and sublimate personal interests tor die greater good of the team.
Effective teams have been found ro have common characteristics. The work
that members do should provide freednin and autonomy, the opportunity* to uti-
different skills and talents, the ability to complete a w-hole and identifiaMe
task or product, and doing work that has a substantial impact on others, The
leains require individuals with technical expertise, as well as prohicm-solving,
deci<!ion-making, and interpersonal skills, and high scores on the personality
characrerisrics of extroversion, agrccahleness, tvnscicntiousness, and emotional
stability. Effective teams are neither too large nor too small—ty'pically they range
in size from $ to 12 people. They’ have members who fill role demands, are flexi-
ble, and who prefer to be parr of a group. Ihcy als<i have adequate resources,
effective leadership, and a performance evaluation and reward system that
reflects team contributions. Rnally, effective teams have members committed to
a common purpose, sjiecific team goals, members who believe in the team's capa-
bilities, a manageable level of conflict, and a minimal degree of social loafing.
Because individualistic organizations and socicdc.s attract and reward indi-
vidual accomplishment, ii is more difficult ro create team plavcrs in these envi-
ronments than in collectivistic ones. '16 make the conversion, management
^ouid to select individual with the interpersonal skills to be effeenve ream
players, provide training to develop teamwork skilE, and reward individuals for
cooperative efffuis.

I
**
f
<
r
f
•{

I.
 4^^

IJ
* * * I*
CHAPTER 9

Communication
After reading this chapter, you should be able to
1. Define communication and list iu four functions I

i7
.'
2. Describe the communication process 1
m lA W

Contrast the three common types of small-group networks

identify factors affecting the use of the grapevine

Describe common barrien to effective communication

List four rules for improving cross-cultural communication

Outline behaviors associated with providing effective feedback

90 M
<•

Identify the behaviors related to effective active listening

probably rhe most frequently ciu-U source

r rucation? Because we spend nearly 70 thar one
ing-reatling, writing, speaking, listening it st^' " ]acfc (*f effective
of cKe most inliihidng forces to surcessttiJ gr p p
coiTununicatioa, . t,-nnsference nF mtaninga»nong
Xn gtor^r can exist without from one person to another that
its members. It is only through transmitting -. however, is mure than
mformatioft und idca?i can be conveyed. documented, tor
merely imparting meaning. U uwsi historv were directly due to the
instance, that many of the worsi aviation dis • yjigrs and pilots.- Keep m
rnisuBdersunding of insC-ucdoiiS between iiir- transference and
niind» therefore, that communicarion mu»i
uftdrmanJiiig of meaning. . - j transmitted and understood by
An idea, no matter how great, is useless unn , thought
others. Perfect communication, if rhereweresuci ,,erccived by the receiver was
or idea was transnutted so char the mcnwl P’ceure pexC
Groupsia th* OtganiMOon elementary in theory, p^J
exactly the s.me »s that tor reasons we will expand on 1
feet comnnmicanon i. never ‘'seeming cornmutix-anon and problem, '*
Before making ux. many generalize the foncaons that cmnumnic^
aminwnieating effectively we need m rev.e
tion perfonns and describe the emunumicatmn p
FUNCTIONS OF COMMtSNICA'nON
( , n.,i.,r functions mtliin a group or organization: conpo,,
Comnumicition serves four maj< r Communicauon acts lu rontrW
motivation eniotfona! X h-e authority hierarchies andT^
„,™b„ Khazar"JXo fc.Uow. '1 employees. f„r
ee .4- rKreleud ^rieeapee b. -heir l,„„.ed„.eb»,
.., f,.lltl.e,, ph deseriprion.» «> comply ».>l> company polices. communKanoa n
performing a tx.ntrul foncnon. But informal comnaunicanoii also controls behavior.
When work urroups tease or harass a member who produces nxi much (and makes dw
rest of the group IcHjk bad), they are infonnally communicating with, and conrroUing,
the memlxrs behavior
Communicarion fosters m«lfvariM by clarifpiig tor employees what is to be
done, how well dicy are doing, and what can he done to improve performance if itk
subpar. W'e saw this aspect of communication operating in our review of goal-setting
and reinforceineni theories in Chapxr 4. The formation of specific goals, feedback on
progress toward the goals, and reinforcement of desired behavior all stimulate nimiva-
liou and requite communk arion.
For many employees, their work group is a priinarj'^ source for social inceractioiL
'I'he com m I tn i cation chat takes place within die group is a fundamental iiiechanism by
which members show their fmstrarions and leelings of sadsfaccion. Coiniuiinication,
therefore, provides an avenue for exptrs^on c/'emotiw t and fulfxllinent of social reedj^.
The final funedon that cot nni uni cation i>crform5 is related to its role in facilitat-
ing decision making. It provides rhe iftfemnaiffn that individuals and E?*oups need to
make decisions lv>’ transmitting the d;ita to idvinify and evaluate choic<^.
No one ul these four ftincrions should lx: seen as being more important than
die others, for groups to pcriorm effectively, they need to maintain snine fiirni of
coniroJ over members, stitntilaic members to perform, provide a means for cino-
Uonal exprcjision. aiul make choices. You can assume that almost even* coinniuni«-
interaction that takes fdacc in a group or organization performs one or more erf
these tour tuncnons. *

THE COMMUNICATION PROCESS

.»
»♦ « a purpose, expressed as si message to be cun-
Before communieaTion can take nluce »
ycvcii IQ np^/U/1 T.. ru. K P purpose, expressed as si message to be con-
-•r'
nel) to the receiver whn r •• i zj pj’ssed by way of sonic medium (dian-
IK T’-“'
Exhibit 9-1 depicts rhiQ rnmm.L- " , iinother.
seven parts: (1) the communication s(.u^-rpl’’"^u*'
rfunnd, (5) decoding. (6) the receiver, and (7) kedS*’* <* **“
 Oiaptart Cowmotuadt

EXHIBIT H The Communication Process

Feedback

The toitm laitiarcs a message by encoding a thiwght- I'be mfssag^ b the utual
phy^l prixiuct from the source miuiitig. UTicn we speak the speech is the mcaagc-
VShen we wrius the writing is the message. WTten we gesture, tlic inuvements »f our
enns and the exprexAions on our facts are the message. The »AiWz/if/ is the medhim
rfirough which the message travek. It is selected by the source, who must determine
whether to use a formal or intormal channel. Formal channels are established by the
oc^aniz^noii sind u ansmit messages chat arc relareil TO the professional activities of
members. They traditionally follow the authorin' chain within the organization.
Other forms of messages, such its personal or social, follow the informal channels in
the organization. 'The m-eiver is tlte ohicct to whom the message is directed. But
before the tn ess age can be received, the synibob ui it must be translated into a form
that can he nndetstcHKl by the receiver. This step is the the message. The
final lint' in the communication process is a feedback loop. Feedtank is the check cm
hew suecessfiil we have been in transferring our messages as originally inrendcxl. It
detennines whether understanding has been achieved.

DIRECTION OF COMMUNICATION
Conununicaiion ran How vertically or laterally, 'flic vertical dimension can be ftirthcr
divided in IO downward and upward dircetiiiris.

Downward
Communication that Hows from one level of a group or org'djxiiation to a lower level
is a downward communicarion. WTicn we chink <.if managers contmunieating widt
employees, the downward partem is the one we are ii.AuaJly thinking of. Its used by
group leaders and managers lo assign goals, provide job jnstruexions, inform employ-
ees ol polieio and protredures. point out problems that need attention, and offer feed-
back about performance- Bin downward communication doesn’t have to be oral or
fece-iu-faee contact. V\*hen inaiugemenr sends letter.s to employees homes to advise
them of the org-anization’s new sick leave policy, it’s using downward communication.
So is an c-m.til from a team leader f<j the members ot her team, reminding them of an
upcoming deadline,

Vpuard
Vpuard communication flo*^ to a higher level in the group or organizaoon Jts us«l
to pnnide R-cdhacl: to higher-ups, ro inform them of progress toward goals, to
current ,.roblei,is. Vpu-ard communication keeps managers aware ot how
nnpkntw feel about their jobs, co-»orkcrs, and the orgamaaoon in general.
 I
Part HI Croups in tl« Organiratioa
pward communication for .deas on how things cm bj =1
Managers also rely on u
,„niratior.al examples of opuani communication are performance rep,,„
improved.
SomeorganiMDon management, sugeeshun .

prqwred by grievance procedures, superior/sohor.linate discu*. •

boxes, .. sessionsb?wh)ch e.nplovces have die opjx.Ttumty- toidendfc '
”'7^” ;'X» I’” ” "Pre,=™,iv„ of higher „™ge,„e„,. gj ;
ImplTredEx pndcs it.-clf on its cinnputerized upu-ard commumcaPon i,rogran,. A]|
its employees annually complete climate surveys and reviews ot managemem. I h.s ■
^tmLs cited as a kev human resources screngtli by the Malcolm Baldnge Nationd -
^lity Award examinci^ when FedEx won die htnior.

Lateral
When (ximmuricition takes place among incmhcrs of the same work group, amrnig
members of work groups at the same level, among managers at the same level, or
among any horizonoUy e<;uivalent personnel, we describe it as lateral communication.
W'Tiy would there be a need for horizontal communications if a group or
organizations vertical comniuTiications are effective? The answer h that horizontal
commnriTtations arc often necessary to save time and facilitate coordination. Li
some cases, these lateral relationships art fonnalJy sanctioned. More often, the)* arc
informally created to shoit-circuit the vertical hierarchy and expedite action. So lat-
eral conuminications can. from managements viewpoint, he good or bad. Since
srricL adherence to rhe formal vertical structure for all coiinnunieations can impede

me eilicieni an accurate transfer of information, lateral communications can be

beneficial. In such cases, they occur •with the knowledge and support of superiors.
But they can creaie dysfunctional conflicts when the formal vertical channels are
breached, when memhers go above or around their superiors to get things done, or
when bosses find out that actions have been taken or decisions made withouf their
knowledge.

INTERPERSONAL COMMUNICATION
How do gi'oup members transfer meaning between and among each other? TTicre
i’re three basic methods. People essentially rely on oral, written, and nonverbal
communication.

Oral Communication
rhe chief means of conveying messages is oral coinniuni earion. Speeches, formal o^c-
W discussions, and the informal rumor mill or mpevine arc popular
tonns of oral communication.
satTi* comnwiueation are speed and feedback. z\ verbal ines-
receiver i« response received in a minimal amount of tune. If die
render .nd, hZ for'Xly

'
whcnevertl^^m'^ ‘I'^advanugc of oral communication surfaces in organizalkMiS t*

’ ^1- nmnt peop^ A

P ugh, the greater rhe pniendal Jistortion. If you ever pbjT^ J|

 CcamuiguiMj^
rtK- p,nH- , ,«n>- > „U know .hr pn,l4cni, imernrrt (IM
.n h'» ..u r wu>. IIK. enu-.u. when i« rSTit. riSi^
..he. .-enr J.ft<-rc.u that ,4 ,hv ..rigin«|, ,« when.' <ISH
.,,d ..thrr ....nn.un.qucs arv vvrix.lly passel up ami down the uu.hc.ri.y hierarchy
there Are K.IUSHU ruble . i|ipununiius for iitcswgvs tr, W.xne diM..rwd.

Writtei) (xinimtiniviUion

Wriiu'.i .•..inn.unk-arions i.u-iudv .nemos, Icticrs, cket.-onie mail, tax transmissions

.Tgamzatistiul fxri.Hi.eak, notices placol on bulletin U.anis, or any .rthvr device that
exHumuHu ates mforirijooii via written wurdsor svinlM>ls
Why would a x’Jukr choose lo use wriitenniinnmnkarinns’ niey’rc tangible
and verifiaJile. Typically. IHJIK the sender and receiver have a rectml of rhe cfMnmuni-
'Ihe rnrss;ige cun be stored for an indefinite period ni time. If there are uucs’
tton.s evnexming the content of the iiwssage. it is physicalh available for later refer-
ence. 11ns feature is panicidarly import.un for vxmiplcx and lengthy ctxnmunicariunK
The marketing plan for a new product is likely to contain a iiuiulKr of tasks spread out
over several months. By putting it in writing, those who have to initiait the plan can
readily refer to it over the lite of the plan. A final Iwnefit of written eommunicarion
cxMiics from the puKcss itself You re usuidly more careful w ith the written word than
the oral word. You’re forced to think more thownighly alxnit what vou want to convey
in a written mc^Ksagv than in a spoken one, ITiws wriocn anninunications are more
likely in l>c w ell thought out. i(»gieal, and clear.
Of cxmr>c, writrcji messages have their drawhacLs. niey're linie-consuining.
Yni could convey far more informarion to a college insmictor in a one-hour oral exam
than in a one-hour w ritten exam. In fact, you owld probably say the same thir^ in ten
to fifteen minutes that it would take vou an hour to write. So, although wTinng may he
nxire precise, it alst» consumes a great deal of lime, llie other maior dbadvaniagc is
feedback;, or Lick of it. <.)nd communication allows the receiver to respond rapidly lo
what he chinLs he hears. W’l itten n»rntnunication, how ever, does not have a buili-iii
feedback mechanism, I'he result is that mailing a memo is no assunnee that it has
been received, and, if received, there is no guarantee the recipient wSIl interpret it as
the sender intended. The latter |X>ini is also relevant in oral conununiques, except it’s
easy in such cases merely to ask the receiver to summarize what you've said. j\n accu-
rate summan presents feedback evidence that the message has been received and
understood.

Nonverbal Communication
H en* rime wv svrhnHy trivc a message to sonuume, we also impart a nonverbal nies-
Mge. in some instances, the nonveriial o*npineiu may stand alone, l or example, in a
angles har. a glaiiix. a staix*. a smile, a frown, and a prosxxarive hoily inovcinent a
convey meaning. .’Xs such, no dixussion of commiiniearion would be ajrnpletc wim-
out consitivrariim of wnvaM w hich includes Ixxh niovenKntsc the
innmarions emphasis we gix e tn wtrt-ds. facial expressions, and the physical disrance
het ween the seiulcr and receh er.
The M'ademic study of body morions has been labeled kincsies. It refers tn ges-
tures, facwl cxmliguratiiHis. and other inovcnunis of the Ixxiy. But h is a
V’Hiftg field, and it has been suNect m far more txmjeccure ami popuhnwng mn
 f Hei.ee while we acknowledge that bcnly in.wenient
„;«rch fuidrngs , Jennimunicarior and bch;.vior, o.nd..«on.
•r

body m<«iyns 7»«i ef«r»r has a meaning and Uiai no mw-ement

X thn,OKh bodv bnguagc we say. -Help me. I’m lonely-;
is accidentd- for 5.,,, aepressed.” :Knd rarely d<. we send ouj
‘■Rke me, I of being wirh t.onvcrbal Ixidy langnage.
mess^^cs ’ , 2 for disbeUvt We reb <Mjr noses lor puzilemem. We clasp oy,
VVe lift one onnidves. VVe shnjg our shoulder, for mdiffer-
wilJk ..ne q-e for intimacy, tap our fingers for impatience, slap m.r forehead for

uJ may dhagrcc **th the s|x:cifiu ..leanings of the nioveiiienis ,»st described,
but we can’t deny that body language adds w., and olun complicates verbal com.nu-
.ucatioii A budv’position or movement does not by itself have a precise or universal
meaning, but when it is linked with sixiken language, ii gives fuller meaning tn a
sender’^ ine.«iii<c.
If you read the verba tun jninutes of a meeting, you wuuldn c grasp the impact of
what w-a’s sard in the same way you would if pu had been there or saw the meeting on
video. UTiy* 'fhcrc is no recoid of nonverbal rommunkation. ’I*he emphasis given tn
words or phrasc^t is mKsing. 'lb iJIusuate huw baonntiftns can change the meaning of a
message, consider du studenr in class who asks die instructor a question. The instruc-
tor replies, ’What du you mean by thtfit?** 'The Student’s reaction will be different
depending on the tone of the inscrucn^r's response. A soft, smooth tone creates a dif-
ferent meaning from an inion ation that is abrasive with sin mg emphasK placed wi the
last word.
The yifw/ exprmtan of the instructor in the previous illustrarion abo coiivuv*s
meaning. zV snarling face says sorncdiing different from a smile. Facial express ions,
along widi intonations, can show airugtncc, aggressiveness, fear, shyness, and odicr
duracTci'ishcs dm would never be commnnicared if you rend a transcript of what had
been said.
The way individuals space themselves in terms physicaldbtanct ulso hits mean-
ing. WTiat is considered proper spacing b largely dependent on cultural noims. Fur
example, what is considered a businesslike distance in some European et>untries would
he viewed us intimate in many parts of North America. If someone stands closer to
than is considered ap|>ropriate, it may wdicatc iiggressiveness or se.xua] interest; if
fertlier away than usual, it may mean disinterest or displeasure widi what is being said
us wportant tor rhe receiver to be akn to these nonverbal aspects ofcotumu-
mcaiiun. oy shouM look for nonverbal cues as w'efl as listen to the literal meaning
a sen words. You should parncularly he aware of contradkrions between rhe ojes-
sage.s. Your bans may My she is free lu talk to you about a pressing budget prubkni.
nonverbal signals suggesting that this is nut tin tune to discuss d*
wrkht ^’hai is being .said, an individual w'ho frcquenrlv glances at her
’’he message that she would prefer to tcrminuie rhe conv'ersarion.
verbalk < e.’cprcss one message verbal I v, such as trust, but nun-
HW.” that reads, “I don’t have confidci« i«
ratcly) than words ” char “actions speak louder (and more accu-
 ORGANIZATIONAL COMMUNICATION
In chix MHlion „,we h en ...lerpersonul .■..uimunicatiDn to orpnizitional cooum*.
,.i«uon. ()«.r focus here will lx; on turm.l nctu-orks, the grapevine, and comtwr-
aided nif chnmans used by organuaiions co facilitate tnmmunicadon.

Foniwl Sinall’Gmiip Netu'orks

Fonnal orgnni«don J networks can he very complicaud, 'they can, for in<jtance,
indudv hundreds of jx^uple and a hdf-dozen or more hierarckical levels. Tn simplify
our discuNsion, we’ve t\»ndcnscd thi?sv nerw'orks into three eonunnn small-groups of
fi\x people each (see h xhibii 9^2). T1K*SC three nctworb are the whecL and all-
diannel Although these thixx- nerwr^-ks have been extremely simplified, they do alltw
us to describe the unique tjiialiries of each.
‘I’he cbatn rigidly follows the fonnal chain of rominand. This network approsi-
mau^s die coiiunuiucation channels \’ou might find in a rigid chree-level organiiation.
1 he relies on a central figure tn act as the conduit for all the group\ coramuiii-
cation. k simulates rhe communication network wu would find on a ream with a
strong leader, d’hc /?//-<nerwock i>crniits all group members to actively commu-
nicate with each other. ’The all-chajmel network is most often chanicterized in prac-
tice by self-managed teams, in which all group members iirc free to eoutributc and no
one person takes on a leadership role.
As Exhibit 9-5 demonstrates, the effecriveness of each network depends on die
criteria you’re concerned about. For instance, the striuTurc of die wheel facilitates
the emergence ol a leader, the all-channel netu'ork is best if you arc concerned with
haring high member satis fa cd on, and the chain is best if accuracy is most imporant.
Exhibit 9-3 leads us co the conclusion lhac no single network will be best for all
occasions.

The Grapevine
The formal syuem is not the only conirnuiiicatinn network in a group or organizjition.
There is also an uiformal one—the grapenne. While die grapevine may be informal,
tliis doesn't mean it’s not an imjKjrtant .snurxx of informariun. For instanee, a leccot

EXHIBIT 9*2 Three Common Small-Group Networks

Chain Wheel All-Channel

A
.1
MR OottfB in the OntenlMtiaf
small-croup Networts and Effectiveness Criteria
EXHIBITS-^
Networks
WTiccI All Channel

Chain Ftft
High
M<*krsce
AitHlerece Higb Kime
Emerc^rtKe of a
Moderate Low Hijh
lc*<ler
Member Miutwuoo
son vy found that 75 percent <.(employees bear about matters lirsi through rumors on

^Thc grapemc has three main charaweristks. h inl, it is not controlled by man-

agement Secoful, it is perceived by >nost employees as being more lielievable and reli-

able than foniiil communiques issued by top management. .And third, it is largely used

to the inrercbts nl the people within it.

One of the most famous studies of the grapevine invesdgated the communica-
tion pattern among 67 managerial personnel in a small manufacturing "The
bask approach used was fn learn from each comminicarion recipient how he or she
first received a given pietx of information and then trace it back tn its source. It was
found that, while the grapevine was an important source of information, only 10 jser-
centof the executives acted as liaison individuals, that is, passed the information on to
more (han one other jxTson. For example, when one executive decided co resign to
enter the insurance business, 81 percent of the executives knew about it, but OoH* II
percent transnutted this intormarion to others.
'Iwo other conclusions from this swtly are also worth noting. Infomiatiiin on
events of general interest tended to fiuw' benveen the major functional groups (pro-
duction, sales) rather than within diem. .Mso, no evidence surfaced to suggest that any
one group consistently acted as liaisons; rather, different types of infonnarion passed
through different liaisons.
An attempt to replicate this stud\' among employees in a small state government
office also found that only 10 percent act as liaison individuals.^ This finding is inter-
esting, because the replication contained a wider spectrum of einplovees, indudii^
operative as well as managerial personnel. Kut the flow of information in the gmcni-
ment office took place within, radicr than between, functional groups. It was proposed
mat tffis (hscrepancy might be due to comparing an executive-only sample against one
at a so included operative workers. Managers, for example, might feel greater pres-
sure to suy informed and thus niltivaie others outside their inunediate ftincbonal
group. Also, in contrast m the findings of ihe original study, the replication found that
a consistent gi^up of individuals acted as liaisons hv traasmirting information in the
government office. '
Is the infomiadon that flows along the grapevine accurate? The evidence mdi-
catcschat about ;5 (wreenr of what is carriul is accurate.^ But what conditions foster
in active grapevine? What gets die rumor mill rolling^
Thk i. " ’ha. rumors surt because they make titiUaling gossip.
Xre cxse. Rumors emerge as a response ,o situations that are »
os. where there is an.l under conditions that arouse
•’t
 Chapt^ 9 CotnmunxaQcn
-^rk situations freqiicntlv contain these rhre^ / ».
<,rgunu.Hon5. s«r«y and ro.njxdbon
gruunri such issues JU the apiwinirncnt of p«vaihn large orfaniza*
d”;,»u,g .i».„„, „d d,e
rf„renenumgc and rumors die grapevine, A^or will peSteX^S
-mor ne fulfilled
WTuc can we conclude frnn, the preceding discussion? Ceminlv the K««vine
i, nnpornnt parr of g-up or organ.«tions communicaden nedvS^^ is
,dl wrxh nnde^ndm^I .denafies for managers confusing issues that employees
insider important and that cearr. anx-etve It acts, thon=fnre, -as both a fdter aS a
feedback inechanism. picking up the issues that cmplovecs consider relevant For
employees, rhe grapenne .s particularly valuable for translating formal eommunica-
rions into them groups OUT ,argon. Maj-be more important, again from a managerial
petspreuve, It seems possible to analyze graiKnlne informanon and to predict its flow
given that only a small set ot individuals (around 10 percent) actively pass on ir.forma-
n-H. to more than one other person. By assessing which liaison individuals will con-
sider a given pietx of informaoon to be relevant, we can improve our ability to explain
afld predict die pattern of the grapevine.

Cornputer-Aided Coitutiunication
Comtniinicadon in today’s org-anizadons is enhanced and enriched by computer-aided
technologies. These include clcccrnnic mail, intranet and extranet links, and video-
conferenong. Electronic mail, for instance, has dramatically reduced the number of
memos, lecicrs, and phone calls chat employees hisrorically used to communicate
among themselves and with suppliers, customers, or other outside stakeholders.

E-xVlail Electronic mail (or c-mail) uses the Internet to transmit and receive com-
puter-generated text and (Ifxmments. Its growth has been spectacular. Most wdiite-
cdlar employees now regularly use e-majl. In fact, a recent study found that the average
U.S. employee receives 31 c-inail messages a day.' .^id organizations are recognizing
the value of e-mail for all workers. Ford Motor Co., for instance, recently made a eom-
purer, modem, printer, and e-mail account avaliable for S5 a month to all of its more
than 300.000 employees worldwide.^
As a commujiication tool, e-inaiJ has a long list of benefits. E-mail messages tan
be quickly written, edited, and stored. 'I’hcy can be distributed to one person or thou-
sands with the click of a mouse. They’ can be read, in their entiren* at the convenience
the recipient. And the cost of sending fonnal e-mail messages to employees is a
fraction of what it W’Ould cost to print, duplicate, and disndbute a comparable letter or
brochure.
E-inail, of course, is nor without its drawbacks. Al the top of the list is inforroa-
bon werload. It’s not unusual for employees to get a hundred or more e-mails a .lay.
Reading, absorbing, and responding to such an inflow can literally consume an
emplovee’s entire dav. In essence, e-mail's ease of use lias become its biggest negative.
E«nployees are finding it increasmglv difficult to distinguish imponant e-.nails from
jwk mail and irrelevant messages. .Another drawback of e-mails is that they lack emo-
ttOMl content. The nonvcihal cues in a face-io-foce message or the tone ot voice from
* phone call im|>ortant information that doesn’t come across in e-mail. Finally,
 1
part nt Groups in the Orf»ni«oon con,e»^
122
e.mail tend, m be or oAer messages that might evoke em^ l
O'diAil

- .1 inks /n^nro arc private. organ.z-au...vwide mfunnatioft

Intranet and Extranet l-.nks r „„1, p^^pk- m an org.uuxation
networks that look and ac t i KC preferred means for employees within
have access. Intranets an. o’) - organixanons .ire cre.<iin»
cnnipanics to comrnun..m nm
A^corw , „p|<n.ees to semi «!«.
sirarepe it, «ccl and rubber suppliers as well as coumv.mi-
tronic mes'sages and d ,.c„d..rs arc linked into us cxlr.inet sys-
caw wid. '.vbri iHU-CTt; to easily commun.cate with its suppliers and for
.he mvcHtory s.an.s of its products at Wal-Mart stores.

Mdctx.'onfercneing r7^<sh<;»AcrttdZ«g is an extension of inaanet or extranet sysutm.

It permits employees in an organization to have meetmgs wi A peep e at different loa
tion.s Live audio and v.lco intages of members allow Acm to see, hear, and talk u irh
each oAcr \-idcocontercncing technology, in effect, allows employees to conduct
interaenve meetings wnthout Ac necessity of all phy.sically being m Ae same IncaAin.
In the late IWOs, videoconferencing was l»asically «>nductc6 from special rooms
equipped with trlevisioo cameras, locared at company facilioes. More recently, cam-
eras anti microphones arc being attached to individual eomputers, allowing people to
paAcipate in sidcoconfcrcnccs without leaving their desks. As Ae cost of Ais tech-
noli4<y drops, videocunferencAg is likely to be increasingly seen as aji aJtemaAc to
expensive and timc-consuniing travel.

Summary* Computer-aided commurucahnns are reshaping the way we communicate

in orgaiiizanons. 5pcvifi«lly, it no longer necessary' for employees to lie at their work
station or desk co be “availahle? Pagers, cellular phones, and personal communicators
allow employees to bu reached when they’ix in a mccdng» during n lunch break, while
visiting a cusumer across town, or during n golf game on Saturday morning. The line
betwtxn an employees work and non work life is no longer dlsrincL In the clcclronic
age, all employees cun dicorrcically l)c ‘‘on call* 24 hours a day, 7 (bys a week.
Organizational boundaries become less relevajit as a result of computer-aided
communications. Networked coiiipucers allow employees to jump vertical levels
Widilt, Ac organization, work full-rune ar home nr someplace other dian a facility
ofKrated by an orgaruzati..n. and condua ongoing cominunicmons with nei.ple in
other organizations. The market researcher who wants to discuss an issue with the
tice Resident of markenng (who is three levels up in die hierarchy), can htT**
j^.p e m iKtv-een and send an e-mail message directly. And in so doing, Ac tradi-
iieXcd Or deteriTunwi by level and acccM, heeomes essentially
iS woA^l i ’? researcher may choose to bve m d,e Caymtan IslanA
C^iu«^ot than do his or her job in the company^
tmerreom^ rh to suppliers' and cus-
As a «se "nfanuanons become ArAer blurred,
.hu :“■>-» - '."‘ed, r™.
n»d.d. d„,d,„g 6. d„d„™ aX™ “
 Chapter)

BARRIhRS TO EFFECTIVE COMMUNICATION

A numlxr of harriers can rcurd or dKhjrt effectrv

n
coTaniunication In this scetioiL we
highlight the more imporunt of chese liarricni.

filtering
Filtering refers to a sen.kr’s purposely manipulatiiig jnftwubon so it will be seen
more hv-rahly by tb- receiver, i or example, when a manager tells his boss what be
feels his boss wants to hear, he is filtering information.
The nujor detenrunant uf filtering is the number of levels Ln an organization’s
MTULiuru. J he more vertical levtE in the organixationk hierarchy, die more oppom-
njties there arc for filtering. But you can CX|H:CT some filtering to occur wherever there
are scants differences. Factors such as fear of conveying bad news and the desire to
please one's boss ofren lead employees co rell their superiors what they ihmk those
scperiiirs want w hear, thus distorting upward communicaoons.

Selective Perception
We hatx roenrioned selective perception before in this btjofc. It appears again because
the receiver, in ihe communication process, sees and hears things in a selective way,
based an bis needs, motivations, experience, background, and other j>ersonal ch ante-
tens tics. *ihc receiver also projects his interests and expectations into communications
as he decode.s thciu. riie eniployment intervicw^cr who expects a female job candidate
to put family before caj'cer is likely tu sec chat priority in female candidates, regardless
of whetlier div candidates feci that way or nor. As we said in Chapter 2, we don’t sec
reality; wc interpret w'hac we see and call it reality.

Information Overload
Individuals have a finite capacity for processing data. .As noted tn our previous discus-
sion of e-mail, when the infomiadon we have to w^ork with exceeds our processing
capacity; the result is information overload. /And with e-mails, phone calls, faxes,
meetings, anti the need to kcej) current in one’s field, more and more managers and
professionals are complaining that they ’re suffering from information overload.
VVhat happens when individuals have more information than they can sort and
use? They tend to weed out, ignore, pass over, or forger information. Or they may put
off further proccs.sing until the overload situation is over. Regardless, the result is lost
information and less effective communication,

Gender Styles
.Men and women use oral communication for different reasons. Consequently, gender
bcajmes a barrier co effective communication betw*een the sexes.
Research evidence indicates that men use talk to emphasize status, whereas
women use it to create connection.’^ That is, men speak and hear a language of status
and independence, and women speak and hear a language of connection and intimacy
So, for many men. conversations arc primarily a means to preserve independence and
maiAUin status in a hierarchical social order. For many women, conv'ersations are
Part 1(1 Groups ift the Organizenon k-k «..onle m-to seek and give ennfinnation and sup. ''
neguriatjons for<'ln.«nes^in w i ■• women talk on and im about rheir
port. For example, X^'hat's happening is that when men
problems. Women ennozx men indepe-ndeoce and c.mtrol 1^
hear a problem, they want to th >

geuhe mens adx^ce.

Emotions
now Che receiver feek at the time of receiving a anunmnication .t>e«age will in£l„.
Sec tow i>e or She interprets it. The same message received when ww re angry or
distrauehc is often interjneted differently from when you re happy. 1 .xrreme emotions
such xs^ubibtion or depression are most likely to hinder efleenve cnm.n.mifanon 1„
such instances, we arc most prone ro disregard our rational and ob,ective thinking
processes and sukstiluxe emotional judgments.

Language
Words mean differcni things to different people. Age. eduouion. and cultural back-
ground are three of the more obvious variables that influence the language a person
uses and the deliniliuns he or she gives W words-
In an organizanon, employees usually come from diverse backgrounds. Furlher,
die grouping of employees into departments creates specialists who develop Aeir own
(arffon or technical language. In large organizations^ members are also frequently
widely dispersed geographically—even operating in different countries—and individ-
uals in each locale wIl use terras and phrases that arc unique to their area. The exis-
tence of vertical levels can also cause language problems. For instance, differences in
meaning with regard to words such as and have been found at differ-
ent levels in in anagen lein. Top managers often speak ah out the need for incen fives
and quotas, yet these terras imply manipulation and create resentment among many
lower managers.
The point is that, although you and T probably speak a common language—
English—our usage of that language is fiir from uniform. If w'e knew how each of us
modified the language, com HI unication difficulties would Ite minimized. Lhe problem
is that members in an organization usually don’t know how those with w'hom they
interact have modified the language. Senders tend to assume dial the w’ords and terms
Aey use mean the same to the receiver as they do to them. T his assumption is often
incorrecT,

OROSS-CULTURAL COMMUNICATION
Effective commuiiicarion is difficult under rhe best of cundirions. Ooss-culniral ftc-
tors clearly create the potential for increabed coinmunication problems.
. process of tneoding and decoding messages into symbols is based on m
individu^s cultural backgrountl and, « a result, is not the same for aU people. The
^wer the differences tn backgrounds between sender and rece.ver, the greater the
OJtterenccs in meanings attached to particular « onls or bchasiors. People fnim differ-
Btl*
,•
 culnifes wc> interpret, and evaluate thinv, *-Wwr>
them differently ‘I'ffwwidy, nd cnnnqoently act on

Cuftural C^oiitexl
Abenerunden.andmgofcuhwalbaprieriandth
across cJnires can be achieved by considering fommunicating
cdmr«‘ ‘^"*'^®'‘^high-and1ow-contci
Culnirc^ and n, differ in the importance m
OQS for communicating whJ.k
ing that individuals ukc fran what IJS actuallv said influences the mean-
other person IS. Oiuntrrcs such a$ China V’?«i whom the
cultures. They n=Jy hens ily on ‘‘*8^-
conynuTurating u jth others, What -id may
said. In these cultures, a person’s ofiicial status olac s’ffi'ificam than u-hat k
considerable weight m communk-aticns. In '^P«taiion earn
America relfeci their low-context cultures Th • * P^>plc in/m Eurupe and North

meaning. Body language or formal titles are secondan^™u'’

(«c FjchibitM—^). spoken and ’^Tiiten words
W'hat do these contexnial differenccis .
Actually, quite a lot! Cfommunieation in high-cntextluh™* communiwtinn-
more trust by parties, What may .appear to an outsider fnh WQ-siderably
eonversarioii is imporiaiii because it reflects the desire to bn1ld?’’''l
a« n..,. ,.ra] agreements imply s.ong eomnS

±r r“-nrgani«itionL.,e hi.hlv Xd wd

^tX t «n^g. precisely worded, and highly Jcgalisiie. Similarly, low-

concc.« cultures value directness. Managers arc expected to he explicit and precise m
convemgintcndyl meaning. It’s quite different in high-contX culfrX where
m<fQagen> tend to make suggestions” rather than give orders.

EXHIBIT 9-4 Hi^- vs. Low Context Cultures

Chinese
Korean
Vietnamese
Arab
Greek
Spanish
lulian
English
North Ameriaff
ScandinavUn
Swiss
German

•M J.& M. • wnslwiW CenwWMCton *• &eoM*

•••« Oft «it Wk «r 11HW »om R1 We*.
J99I. p.
21
 k
RlrtHl Groups in Orf*"*"**^

A Cultural Guide jifferent culture, what can yoii do |^!

S:: -** .nisevaluauons? Mlowrog th«e (b« 1
rules can he helphil”:

•
Mi«t of us assume that nihcrs are more ’
JiFcrtut countnus <Jten are vm
1. to u. th.n ,r, it ><ni A.MUUV IHM odx r, .re
-""-T ”
d,u-npti«" r.„btr rhax Interpreting or evaluatnig
''''
S .onu^nc L. said or done, in entrust to deuT.puon, is hated more on
2. oiliure .iml luckgroi.n.l dtan on the observed siniaiion. So -Way ,«dgn,en,
until you've had sufficien. time to observe and interpret the stlnation from the per.
spwtivci ol all cultures invokeil.
/v«nzr Before sending a tnessage, put ymirtelf in rhe receiver's shoes, WI-
HK
3. arc his or her v.ilucs, experiences, and frames of reference,' What do you knoiv ahem
his or her educatic.it. uphringine, and Itttkground chal can give p.u a«idcd insight?
rr> to see the other person as he or she really is.
Treat y^urmtcrfnxfati^ii a wot hug krpaMs. Once you’ve developed aii explaiwtion
4. for a iww situalion i»r ihink ymi cniptht?c with sometine fmin a foreign culrwe, treat
>‘our inKfpretation a^ a hypoThesis dut needs hinhcr testing rather th,w as a
certainty.
Carefully assess ±c feedback provided by reed ven to w if it confirms your hypothe-
sis. i or inipoTTflnr decisions or comm uniques, you can HIW.I check widi other foreign
and home'COuntn' colleaoio <o make sure your uKcrpreucions are on tarnt.

ETHICS IN COMMUNICATION: IS 11’ WRONG

TOTELLALIE?
W'Tien we were children, nrr parents told ‘‘h’s wTong cn tell a lie.” Yet we all have
told lies at oiic time or another, li most of us agree that telling lies is w rong, how do
we justify continuing to do it? The answer is: Most of us differentiate between “real
lies* and *liuk while lies”—the latter being an acceptable, even necessary, part of
swal interaction. Since lying is so closely intertwined with interpersonal coinmunica-
tion, lets look at an issue many managers confront: Docs a sound purpose josrify
intenoonally distorting information? Consider the following sinianon.
An emplcnee who works for you asks you about a nimor she’s heard rfint vour
department and all its employees will lx transferred from New York City^ to Dallas*’
Vbu know the rumor i.s true, bur you would ratlier not let the information out just yet
OU re ear IT cu urt deiurtmcnral morale and lead to premature resignadon^
±er or'.;; s

probkmrr„d'L!X’^ ^on.,nun.cati,.n, whac «n manager, .Io ro nnn.o.izx-

pxupiems anci attempt to overcome th<«c hirrin^t -ru r n
,hoUJ be helpful i„ ea„„,u„.eub„„
 o»p«»9
L’se Multiple Channels
U-hoi J-ou use mulnple channels lo convey a n>e«a.«
hfKxl <)l clarity fi.r tux. reasons, kirst, von srini,.i,. the hkeli-
seiises. An e-inaiJ and a phone call, for eii.nnl
Repeaang a message hy using a different eha^nnel’*'^'^'^'^^ and .sound,
aecreases the I.kelihc«>d o. distortions. Sec^^i ^k
absorb mlomaaon. Some understand hesi when a ’‘’’i?!* ‘®
however, prefer oral ..'onimunications. The latter tend T *"

» ........................ ........... . “-i -iph- ““

Use Feedback
Al^y communicai^n probli^s c^, he attributed directly to misunderstandings
and inaaaracics- Fhese are less likely to occur if the manager ensures tiiat the
feedback loop is uobzed in the corrununicadon proews (see Exhibit 9-5) lliis
feedback can IK* verbal, wnnen, or Qonverbat.
h a manager asb a receiver, ‘'Did you understand what 1 said^” the
response represents feedback. But the "yes” or “no” type of feedback can defi-
nitely be improved ujMtn. The manager can ask a set of questions relating to a
message in order to determine whether the message was receivwl as intended.
Better yet, the manager can ask the receiver to restate the message, in his or her
own words. If the manager then hears what was intended, understanding and
accuracy should be enhanced Feedback tan also be more subtle than the direct

EXHIBIT fi-5 Improving Performance Feedback Skills

The foUvwing spcvific siigge^rions can help managers co be m<*re cHccnvc io proviJuig
performance fetdheck to others
/tfs'itf 9n fptafif MiTCKtri Feedback «hnnUl U: specific raiher than general. For example,
1.
instead of saying:. “You have a bad aiiifniie," a itidnager nu^i «yi ‘’Bob, Xm concerned with
your attitude u»ward )Xkur work. Von were a half-hour lais’ ro yesterday’* staff meeting, and
then you cold rnc vou hadn't read the preliminary report *c *ere dhc.issing. Today jwtdl
roc you’re ukmg off lliree houn rarly for a dental appwmtracnt.* This tells Bob why he is
being vritivi/erl.
iwper^nai. Kxtiback should IK’ iob related. S’ever critidte *mncot»e
2.
henwK- of an .nappropriaw action. Telling people thej.’rc ‘•incompuent, ..r the like
u almost always coimtcrprf’diicHvc. uMb
Uftf fnJhti ffial antnud If a manager hts tn say something negaU'S.
J,
wre direct^ toward the rs, ipie«-s gnals. .\ manager shouldask
pused tr, help If the answer is essentially that Tve g.U srm.eth.ng I jmt want to get □« «»»
chm,” then he or she should not speak. ,
4. n,^. feedhaek is most inu.nmgfnt n> , n-«>ient who.
intend between hrs or her bchanor and ,he n ceipr of feedback
J. hmm uHJtntMiag. Is the teedbaA cunew and rhe redpicni replw

the cnotTni tif die feedback ui sec *hethur it 1 u> 'nwrtk little «l<*
*■ Dma nrgtmr frfdhutl'/vtnl n^^trol. .Srpave fcadhKk.
 •r rt ««I« of * rviuii-«n m 4 nusssgc, bi t

hiTs’nlf^irdnnga^ monthk "‘'i

Failure- of some of the sale-s|H-oplc vwni ui the new rqmd ,s . ty,,.
f fkXk' It should suggest to her that she nenh h. clarity tunher her ininM
directive Simil.nh. « hen you gixe a sj^ccch to a group ol ix-ople, y.xi can tell hy
their nx-’mmvments .md other nonverhal clues whether gn.up meinlx-rsan- gut-
tmg vtinr ines.sagc. I'his Ix-iu-fit of fec.ihack may explain w hy television |wihnn.
ers .m smianon ixnncdx shows prefer to rape their pnigrams m trom of a live
audience- Immesliatc laughter and applause, or their alwence. convey to the ptr-
tiirmers whether they are getting their mes-sagc acros.s.

Simplify Language
Bcvau'*’ can U' a harrier, a manager should seek to strucnire messagoi in
Mjvs ihiU will make them dear and undershimbhle. Words should he chosen
rarehdlv. Ilie manager neeiU to simpht}* his or her lanpiage and consider the
audieiHv to whom a message is directed, so that (he language will he coinpahble
with the rewver. Remember, clKvnve communicuion is achieved when a mes-
sage is both receivexl and M/j^/rrrrcrxA Vndersianding is improved In siinpldying
the bnphigx* used in relation to the audience intciuktl. This menus, for example,
that a hospital administnnorshoukl always tn n* eommunicale in dear and easily
undersbMKl tenns and that the language used tor conveying messages to the snr-
gii*al start shtxild IK* puq^isvly differv‘nt trom (hat used with employees in the
admissions Jargon can faeilivate understanding when it is used with other
group nKmlKTS who s^xak that language, but it can cause innnmerahk* pn4>leins
when used ounsidc that group.

Listen Actively
When someone talks, we heir. But, tixj ohen, we don't listen. Listening is an
aetive search for meaning, whereas hearing is [wssi' e (see Exhibit 9-6), When yfxi
listen, two people, the meiver and the sen.ler, arc thinking.
Many of us are [uxir listeners. V\ hy? Bceausc itk difficult and liec.nise it’s usu-
ally more saus-ijnng to talk, l.isteiiing, in fact, is often more tiring than talking- ft
denunds mtdieenial eftorr. Unlike hearing, aenve listening denwnds toral etuieen-
traaoii. 1 nc average person .speaks at a rate of alx)UT I SO wonis |icr minute. >vhcn?«»
we have the t^^cin listen at the rate of over I .(XX) words ix r minute. I he dirtvr-
ence t^Muudy leases idle hrain time and oppuminities l<.r the mind m wander.
Acns-c listening is enhanced w hen the letriver develo|e. empathy with the
«ndcr. that is. when the receiver tnes to place hinwelf in the sender's ixwlion.
Beewuse senders difter in attitudes, interests, needs, and expectauon.s. emp-thy
^es It easier to undersund the actual cnnient ot a ,nes.sage. .\n empatheoe lis-
tener reserves (udgment <HI the message's content and carvftilh listens to whal «•
 Chapter 9 Cottumaiindoii
EXHIBIT 9-6 Improving Active Listening Skills

ri h. <««xe»uon.v.n hdp tn b. nxre effetnve Imenrr,.

f. Wc Jiwun »ich our but iudffc uSnrSz.. i « L .
.nxr eye ., zM^kiiig eye er.nuct xiih the x,>ciker “
dtsiNiiions. 4hil rfiiMui nifus the ^|x .iker. ’ ’ reduces rh< pounu^l ter

eM m * h.a .. Ixing suU tKm^nonverk.l vpuk Aftirn^uvr head nods .ui 3pp.o1X‘
4epnss..xis. when u. good cy. ornPH. ^-onrej. tn the jp«kcr tlu,r one
.r 11K .«hcr s.de of showing interest ,s
th,it su^gcM inwagers mind ts somewhere eJse, Acncn, ruch as linking ai one’,
watdi. shLifning jHpr.x .ir pUying w.th a |xncil make die speakvt Ud Ac is l.ired
or uniiinTcsicil.
ri .co,liL.l listener ^.i.k-zeSHlni. he or shtbwr, .nd isk.,,uR,Q<>,.<yn«ti<M,mB
pnnides dinhcioon, ensure, midLrsund.ii-, and assures ilu- speaker ..re U lisuiuTig.
I'he efieeth-e hstenrr .«« (»hrxivs such as -VVlai 1 bear p,., i, ... - or "Do
4, ypu men . . " Pai apl.nsin^ acts as an cscelleni cwstrol dcvke i<. clwcL on whelhcr nne islis-
teniog can hillV h .»lsu a vontnd for Mvurdvy
s. .ftW ime>-’vpu’>!{ <h ^p.jifT. Ltt the speaker complele his or her ihought before responding.
or "Do
Don’t try to pte« uhfirc Ac speakers rhoughts are c’oing.
Dwf > ffVfrtalk. Alos: ot us U’ouM raAer 1,-0our own Mets than bscen tn srhat somwme
e. sjy%. Ton msny oriv< b*Tcn only because i|> Ac price vre Iwve to pay to get people to let us talk.
Talking may be nxire fun and silvnte may he nnnRnfbrtable, hut itV impossible Io nik and IM-
7. un at the samv lime. IK good IwtciKr m ugni«s Uw. fact .ird doesn’t oscrtalL

A
being said. The goal is to improve ones abilin^ to receive the full meaning of a com-
municauon, without havnng it distorted by premature indgments or interpreudons.
I
.
I
Constrain Emotions
It utjuld be naive tu assume that a manager always communicates in a fully ra-
tional manner. Yet wc know that emeu ions can severely cloud and distort rhe
rrjnsterence of meaning. If we’re crnotionjilly upsci over an issue, we’re likely TO

misconstrue incoming messages, and we may fail to express clearly and accurately
our outgoing messages. What can the manager do? The best approach is to defer
further communication until composure is regained.

Use the Grapevine

You can’t eliminate the grajKvinc, What managers should do. therefore, is use ic
and make it work for them, Managers an use the grapevine lo h^nsinit i urma-
d<wi rapidly, to test the reaction to various decisions hcftirc their final consumma
□on, and as a valuable source of feedback when the managers t emse ^es are
grapevine mcmbcn.. Of course, the grapevine can cam
reduce the effectiveness of formal communicarion. To lessen t /
doarucrivc force, managers should make good use of fonnal channe s
dut they reguiariv carry the relevant and accurate information t at emp ,
 J /• 6»
• it 4

CHAPTER 10 __________________________________

Leadership and
Creating Trust
After reading this chapter, you should be able to

1. Summarize the conclusions of trait theories

2. Identify die limitations of behavioral theories

3. Describe fiedter's corrtingency model

4. Summarize the path-goal theory

5. List the contingency variables ir^ the leader-partidpation model
S. Explain gender differences in leadership styles

7. Differentiate rransformahona/ from fzansacf/ona/ leadership

8. Identify the skills that visionary leaders exhibit
9. Describe the four specific roles of effective team leaders
TO. Summarize how leaders can build trust

t has been accepted as a truism that good lcaden,hip is essential to business, to gt*-

I eminent, and co the countless groups and organixadons thai shape the way w^ Itve,
work, and play. If leadership Is s\n:h an important factor, the critical issue is: 'A’hat
makes a great leader? h s templing to answer: Great followers! Although there is
truth to this response, the issue is far more complex.

WHAT IS LEADERSHIP? .
Leadership is the abilit)' to influence a group toward the achievement of goals. Th*^_
source of this influence may be formal, such as that provided by the possess^'" o*
managerial rant in an organization. Because management positions c<ime with som^
degree of foniially designated audioricy, an individual nuv assume a leadership n't
as a result of the |x»sitmn he or she holds in the organization. But n<rt all leader* art

•4
 Qiapter 10 Lud«nhjp and CmnafcTniR
manigers: nor, for that nutter, arc all managers leaders. Jusi because an organizarion
prov-idc-s irs maiugers with cc^m nghts is no assuranex they «tU be able t« lead effev-
ovefy. xVonsancnoned lcader?h}p-ihat is, foe ability tn influence that arises outside of
formal structure of the organizatio.,-is as im(K.rtant a.s or more important than
fopnal influence. Tn other words, leaders can emerge from within a groun as well as
hein4( ff^niiallv nppoinred. *
■ Ihe leadership literature is i ..lnniinou.s, atid much of it is confosing and contra-
dicton- In the folJoumg pages, n^c attempt t«i pro^-idL• you with some insights into
jar m a an effecdve J ea der.

JRAIT THEORIES
If (Uie were to tlcscribe j ieaifer ox> the basis of die general connotations presented in
today's media, one mighr list qualitic.s such as iindJigwice, charisma, Jeeisiventss,
cnth'tsiasni, streiigdi, brai cry. inregrity, self-confidence, and so on—possibly eliciting
the conclusion that effective leaderti must he one part Boy Scout and two pans Jesus
Chrwt. The search for characteristics, such as those listed, that would differentiate
leaders from nonleaders otcupieiT the early p.sychologists who stuiiicd leadership.
Is it possible co isolate one or more personality traits in individuals wc generally
acknowledge as leaders—VVmston CHirchill, Mother Teresit, Martin Luther king. Jr\
John f. Kennedy, Nelson IVlandcla, (lolin Powell—diat nonleaders do not possess?
Wemay agree that these indinduah meet onr definition of«leader, but they represent
individuals with utreriy differenr characteristics. If chc concept of traits wa.s to be
proved valid, sped fie characteristics had to he found that all leaders possess.
Research efforts at isolating these traits resulted in a number of dead ends. If the
search was to identify a set of traits that would always differentiate leaders fmni fol-
lowers and effective from ineffective leaders, the search failed. Perhaps it w'as a bit
optiniisric to believe that a set of consistent and unique traits could apply across the
board to all effective leaders, whether they were in charge of the iMonnon a be macle
Choir, f4enerdJ Electric, Ted’s Malibu Surf Shop, the Brazilian national soccer team,
or Oxford University.
f
However, attempts to identify traits consistently associated with leadership have
been more successful. Six traits on w’hicb leaders differ from nonleaders include
(I) drive and ambition, (2) the desire to lead and influence others (3) honesty and
mtegriry, (4) self-confidcncc, (5) intelligence, and (6) in-depth technical knowledge
related to their area of responsibility.*
Vet traits alone are not sufficient forexplaining leadership. Their primary failing
IS dut they igiKjrc situational factors. Possessing the appropriate traits only makes it
Ji’urc likely that an indiridual will }>e an effective leader, lie or she still has to cake the
ght actions m one wtuatiun nre not necessarily rignc
right actions. And “the ri
differcni situation.

BEHAVIORAL THEORIES
•■he inability to strike gold in the •‘trail mines" led researt^hers to look at the behanore
specific leaders exhibited, nte)’ wondered if there was .somethtng uruque in the
*»> effective leaders behave. For example, do tiiey tend to be more democratic dun
*W(HTatic?
 Groiipiin tbeOrpininOon
RirtRI
Nor only, it was hoped.
rive ansM-cn. »b«’ot t*""
cal implk-.tiof^ quite differcnt
had been *“tcessft.l..t woul«l have P
assume a formal
contract, if behavioral studies ue
leadership, «c could tram J ,
behavioral theories, in
trail theories uere valid.
didn’t. On the other hand.
then we could teach
behavioral
apprMch provide more
^h.\, if successful- it would have
, .h«..e of the trait approach. If trait reseat^:
f„r selecting the nghr pemnto
that required leadership. |, 1
turn'up critical behavioral determinants of ;
j^ajers. The difference between trait and
• |jes jn dieir underlying assumption,. If
" X"" re'l^ hom: You either had or yo«
behaviors th.it ide.iufied leaders,
P programs that implanted these
leadership-^^-hrdesked to be effective leaders. This w?,
it would mean that the supply of leaders could be

Z-nded.“'f n-„ninB .orkid. we n.uld have .n infinite supply nf effective

kflderfj.

Ohio State Studies

The most wmprehensive and replicated of the behavioral theories resulted from
research that began at Ohio .State University in the late 1940s.- These studies sought
to idendfr independent diiuciu>ioiu> of leader behavior. Beginning with over a thou-
sand dimensions, they eventually narrowed the list into two categories that substan-
tially accounted for most of the leadership behavior described by subordinates. They
cnilcd these two dime ns ions inifiarif/g structure and cemi'idiTathn.
Initiating stnicfurc refer> tu the extent to ^’hich a leader is likely to define and
structure hi:s or her role and those of subordinates in the search fur goal attainment II
includes (behavior that attempts tu organize work, work relationships, and goals. I he
leader characterized as high in initiating structure could be described in terms such as
‘‘assigns group niembcn to particular tasks," “e-vpects workers to maintain definite
standards of performance,” and “eniphasixcs die meeting of deadlines."
Consideration is desenhed as the extent to which a person is likely to have job
relationships characterized by mutual trust, respect tor subordinates’ ideas, and regard
for their feelings. This type of leader shows concern for his followers' comfort, M ell-
being, status, and satisfaction. A. leader high in consideration could be described as
one who he p-s subordinates with personal problems, is friendlv and approachable, and
treats all siilxirdinares as equals,
ariiu, based on these definition^ found that leaders hieh in ima-
ordmau leader) tended to achieve high sefn
Xr o, inS fr^^Aucntlv than those who rated
Xyv?^rin I'oth. Bur the high-high sty le did not
high on inibatiug strucmr7*lcd"w^hiJh I’t^havior characterized »
lumnver and lower levels of ioh satisfifgrievances, absenieeisni, and
Other studies found that high considfradon "" Performing roudne tasb-
ratings of the leader bv his superior In cond related to perfonnance
that the high-high style geneS resX^^^•'
WMis were found to indicate that siruadonal outcome.s, but etUMigh etceF i
theory. Mtuat.onal fan.H, needed to be integrated into d* J

hl >
 • *■
s

Cniversitj'of Micliifian Studi<»s Chapter 10 Leadenhip tod Ociihng: lhi«

I,„d.r5h.p undertaken at the LTniversny of Michigan’s Suney Research

Center, at about the same tone as Aose be,ng done ar Ohip Suce. had simiL research
nb,cct,ve.: To locate behavjorat characterisrics of leaders that appeared «, be related
measures of pc^,-manc-e clTcYveness.S The Michigan group also came up with
two dunensions oi leaderdup i>ehav,t,r. which they labeled cmplowe-oricnieJ and
productjon-oriented. Leaders who were rv«y,/c7rr-0Fjc«Zr,/were described as emphasit-
iHg.ntcrpersonal relafions; they took a personal interest in the needs of-Jieir subt.rdi-
Mies and accepteti indrculuaJ deferences among u,embers. The Vi
lea.Iers. m coiicrast, rendwi to emphasise the technical or task aspects of rhe job—tfidr •••
main concern u-as accomplishing tlicir group’s casks, and the group members were a
jncans to th IT end.
The conclusions anived at by the Michigan researchers strongly favored the lead-
ers who were cmpJoycc-orieiite.l tn their behavior. Employee-oriented leaders were
associated with higher group productiviry and higher job'satisfaction. Producrion-
orienTed leaders tended to be associated witlt low giiiup produenrity and low worker
sacisfacnon.

The Managerial Grid

A graph ic portray al c?f a nvo’dimensiorwl \new nf leiidership styles was dcvclqicd by

Robert Bbkc iuid Jane Mouton. ' They proposed <i managerial grid l>ased on the
Styles ot “concern for people” and “concern for production,” which essendally repre-
sent the Ohio State dimension.'^ of consideration and ini dating strucnuc or the
Michigan dimensions of employee-oriented and production-oriented.
The grid, depicted in Exhibit 10-1 on page I?4. has 9 possible positions along
each axis, creating 81 different positions in which die leader’s style may fall. The md
does not show results produced but radiet die dominating (actors in a leader’s think-
ing in regard to getting result.
On the basis of die findings from their research, Blake and Mouton concluded
that managers perform best under a 9,9 style, as contrasced. for cAampk, with a 9,1
(task-oriented) or the 1,9 (country-club ty’pe) leader. Lnlbrtunately, the grid offers a
better framework for conceptualizing leadership style than for prc-j>cnring any tangible
new information in clarifying the leadership quandary; since there is little substantiye
evidence to support the conclusion that a 9,9 sty le is most effective in all situations.'

Summary of Behavioral llieories

We have described the most popular and impurtanl of the attempts to explain leader-
ship in terms of the behavior exhibited by rhe leader. Unforninately there was very lit-
tle success in identifying consistent relationships between patterns of leadership
behavior and group performance, Uliat w'as missing was consideration of die situa-
tional factors that influence success or failure. Tor cx-imple, it seems unlikely chat
Martin Luther King, Jr, would have been a great dvd-nghts leader in 1<>00, yet he
in die 19S0s and 1960s. Would Ralph Nader have risen to lead a consumer activist
group had he been born in 1854 rather than 1934. or in (k»ta Rica rather ilun
<^nncctKui? It seems quite unlikely, yet the behavioral approaches wc have desenbed
w>uld ntrt clarify these situational factors.

I
hut Hl Tbe Managerial Grid
EXHI8IT 10-1

1
I

r
Concern Ker people

M»dcJ4o-oF-tKe-roa
&A Y m

Concern for production

riMpovertebed
fWmgernen^ maawcemcot J

Based w ai-nersinns tfesomed k R ft. B akeand J.S. MowWrt.Su-Wi"gfl

OWnlcCwp^^ fttf
Pe-v/wneji' (Head ng. W. AcM«on W^sir; 1SC9)

CONTINGENCY THEORIES
it became increasingly clear to riiose who were suidying the leadership {d>eiwmcQ0<»
that predicting leadership !5uccess was more complex than isolating a lew traits or
preferable behaviors. The failure to ohmin consistent results led co a new focus on ’flt
uationa! influences, I he rebdonship herween leadership style and effectivene^"' sti^
gested dur siyk x would be appropriate under condition whereas style y would be
mtffc suiuldc for im-nlinon ant, st\4c i for condirioi'i c. But what were the condioo*^
n, h, (, and so forth? Ir was one thing to say dial leadership effectiveness w-as dtpendett^
on the Mcuadon and another to be able to isolate those siniatiunal condi lions.
Three contingency theories have received the bulk of arteation: Fiedler, path-
goal, and leadcr-pamciparinn. Wc review each in this settion. We also rake a look at
gender as a ccmtingcncy variable. Although tlicce Is no sjKcific ctmtuigency thc<>0
that directly addresses gender, an expanding body of research compares male and
female leadership styles.
 C’wpfw 10 Lewknlilp tnd O«Min, Thw 0^

The Fiedler Model

«.tx.r<l.n.its and the degree iv uh.ch .he snuatinn pve. ^ot and influence
leader
Fiedler bcl.evcd riut ^mditnduals basic Icadersbp sale .s a kev factur in lead-
enh.p s..cc«s. So he began liAnng «, hnd out u hni *at basic sn-le n as. F.«ller“e-
ated an instnunent, wh.ch he called the least-pr^-fcned co-worher (LPC)
rionnaire, tor rh.s purpose, h conta.ns !ft contrasung adjeebves (such as nl«Lnt/
unplca^nt. cftc.cnr/.ncffic.cnt, ope.i/guardcd, suppornve/hosuk) and pu^ns to •I
measure s^hcdier a person is usk-cnented or reb lions hip-oricined. 1 he quesuon-
naire ask< Ae re.}x>rnlvnt ro chink of aU rhe vo-u orfcen, he or she ha> ever had and to
docribe the one pcrMin hr or she /«xr working with by rauog that person on a
sc-Jc of 1 to S Inr each of the 16 .sets of contrasung adiccrives. Fialler believed that
what respondents said abonr others tells more about the resjK»ndents than h tells
about the pers<jns theyre describing. If the least-preferred co-worker was di^scribcd in
rdamch* poitive terms (n high LPC score), then the rc<v|K)ndenc wxs primarily inter-
ested in good personal relatjons co-workers. Hut is, if you essentially desenbed
the |»erson tw are least able co work with in favorable lenns. Fiedler would label vou
rebbonship-oriented. Io contrast, if die IrasC-prcfcrrcd co-workcr k seen in rebtiveiv
unfavorable terms (a low LPC score), die respondent is pnmarily interested in pro-
duebvin-and thus would be laiiclcd task-oricnieii. Nobce diat Fiedler assumed that an
individnars leadership style is fi^ed, that is, either relationship-oriented or task-
oriented. .As we show below; this assumpbon is important because it means that if a
situabon requires a task-oriented leader and rhe person in that leadership posibon is
rebb(mshi|wirienred. either the situation has to lie modified or the leader replaced if
upbmat ctfccdreiiess is to be achieved.
After an indiriduaPs basic leadership shde has been assessed through the LPC, it
is oeucssan* to m.)t(.h the leader w’ilh the sicuadun. The three situiioonal factors or
contingency dimensions idendfied by Fiedler are defined as fiillows:

1. Leader-member rclatiotis: I he degree of wnfidcDce, crust, and respect subor-

dinates have in their leader
2. Task structure: I he degree co which the job assignuients of subordinaics are
structured or unstructured
J. Poadon power: The degree of influence a Ir.tdcr bu wer power «ria».les »□<* is
hiring, firing, discipline, promotions, and salat)* iDcrcases
The nest step >» the Fiedler model is to c^■flluatc the situauon in reniis of these
coniingencY variables. Lcader-memher relations arc either goixl oi ^usk
«nxTure either hitrh or low. and position power either strong or weak Fiedler stated
«bat the better the’ leader-member relations, the more highh stnimred the ,.>b, and
wronger the posin.m power, the more control or mfltjen« the leader h^^ For
'Wnpk * ven- fak<aMe ^tuation (m whid. the leader of
might involve a pavroll manager who is well respe^ eTcSr-
b« amfidencr m him or her (good leader-member
«o be d.xK-«M* as * age a-mputatiuo. check w ntmg. report filmg-are sp«hc
♦7
Grouw m th* .» • W
•. ^nd iV.e H.b pr<wiJ*--s cousderaWe frccHoin to rev^
and clear wsk .„^r). On the othtr hand, an unfavorable
and punish subordinates (s^ng J f voluntary Lnitcd Way ftjnJ-rai,j^
..tuadon might be the «ntro!. .Xhogvther, by nuaing the *2 •.

ss+ich a leader could j^^ l ^^LPC and an abscssmcin of the three canbn-
Uich Jmonded,^ J ' ,o^oi tnaiching them up to ad.Kte maxin,a«
genj y «nab^, the F research, Ficdkr mnehtded that task-orientoj
leadenilup erfecuteno - situations that were frry f/ii'oraMf to Them and in
leaders tend .o perlonp.hihit 10-2). So Fte.lkr -ould predict ih«
“I”" A'"d"'^eon I II 111 ■^‘U orVinsiniati<«n,ask-onentedlea.krsper-
Lm Si'‘Rcladon.HT>:<.;iented leaders, however, perform better -J nxjderatek
Lomhie siruaduns-^aretrories TV through n. In
densed these eiffht situations dotvn to three.' He nowjiays that wAmneniwI
perfurmbest inriruwidi..*ixb high attdlow control,wdttlerehtmitslup-onentedk«J.
cr® perform best in moderate control siiuadons.
As a whole, reviews of (he major studies ±at tested the overall validity of <!«
Kiedler mode) lead ro a generally positive conclusion. That is, dierc is considcralik
evidenev lu support ar least sul»cainial parts of the mtxlel.^ If predictions from the
model use only dircc categories rather than the original eight, there is ample evideoLt
in support Fiedler s coflclusiuiis. Bui dicrc arc problems tidth the LPC and the practi-
cal use <if the model that need n» Iw atUlrcsSiecl. For instance, the logic undcriying it
LPC is not well understood, and studies have shot^n that respondents’ LPC scores are

CXHIBIT 10-2 Findings from the Aedler Model

•“ — Task-oriented
A
Performance
Retaxionihip-orlented

Good

%
/
/
X

Poor Pavorab^e MQ derate Unfavorable

Category
1
« (IH IV V)
$

teaderMviembe VW
Good
r Good Good Good Poor Poor
i At ft
relations High Low Low Low
atruCTure
Shortt ^VSfetf VMak
PMCiOn Wwlt Sow
1 c] 1
power
 kJ 4bA Chapter 10 l-i'adw^ipandCwaWThin
stable. Also, the c-xianRency variables arc mm, i
to r.>tten diPficuk rn p™s^ce„z:sr/"^R>r pracfstioner^
rebtinns ^ircs bow stniciured theusk is and h.«. tbt’ leader-member
nou much position ponx-r the leader has.
Leader-Member Exchange ITieory

^avc you ever noticed that leaders ciften act .1

have favoriu-;- That, in es.^ence, is the fouiuiatirm nf people and
rhe lea<kr-member exchajiee (LMVi IKA »^*uhange theory?
special relationship widi a small gr.,hp „f ,hei,- folloXrs^^"?’-' •
the leader’s in-group.-people wlu.m rhe leader tnists u.h,.T .'"‘J'J'"'’'
amount uf his nr her lime, and why art mnre likdv tni r^ri,-. / ‘J‘^T'''’Portionate
followers foil inld die nut-group. Tlicv get lew iif th.? le M Oilier
fcn-ed r^Y'.^ that die leader cnntrcis, and have
fjrmal iiuthonry interactions. rwstn on
The Y<-n' pr< that early m the history „f the interaction between a leader
and a itJveai follower, rhe leader imphc.tly categorizes the folloaer as an “in’or an “one
and that die re ationsh.p ,s relatively stable over time. Just preaselv how the leader
chooses who falls into each categon’ is unclear, but there k evidence tJ^at leaders tend to
chofKC in-grnup memhers because they have attitude and personaliT>*fhardcierisdcsthat

.
K
.
*
5»re sunifar co the leaders or a higher kvel of competence than out-group members.
Scudie’i confirm several l.MX theory predicnon^; Leaden du differennate
among followers; these disparities arc hr from random; and followers with in-group
5wnis have higher performance ratings, lower turnover intentions, greater satisfaction
with ±eir superiors, aud higher overall sausberion than those in tlic out-group.
PathXSoal Tlieory

Currently, one of the most respected approaches to leadership is the path-goal theor\'.
Developed by Robert House, path-goat theory is a contingency model of leadership
that extracts key elements from the Ohio State lendership research on initiating siruc-
lurc and consideration and the oxpuctancy theoiy of Tnorivacion
The essence of the theory’ is char its the leader’s job to assist his or her follow-
ers ill attaining rheir goals and in provide the direcuon or support or both needed to
ensure that their goals are compatible with the overall objectives of the group or
organization. The term is derived from the belief that effective leaders
clarify the path to help their followers get From where they arc to the acluevement
of their W'ork goals and make the journey a king the path easier by rei ucing roa
blocks and pitfalls. .. ,
According to path-goal theory, a kader^s behavior is to
the degree 6at it is viewed bv ’hem as an immediate source o satis ° .*
of 5a«l.cu„„, .,1 1.0<k,-. bduvior io t®"'
(I) makes subordinate need satishiCtion contingent on e ccinc |
<21 ,he goidonco, suppo^ o„d
Ovc performance. To test these statements, House ^fthem. schedules work to
rhe Jfrrrru’e Zwrfer lets subordinates know' what H expe , dimension
l« done, and give, ,pacific guidance
^ly parallels the Ohio State studies initu S This dimension is essentially
^’^dly and shows concern for die nee<k ol j»ubor
tartIR &oup in the OrganiMtj"” W
• u .h. nhin State studies’ consideration. The
synonymous with Oh suegesrions befr>re making a lieasion, Th,^ )
insula
«W«-r«r«.-«r«««erfi<»dfrse.-sfhal^ng ng^^ behavior, Mouse assun,"

.,H=ble, rh« .noderate *, fader beh™or-oafa»n= rehnonsb,,. fh,,,,

in die are outside the o.iitrol of the leader (task strocttire. formal auihori^
system, and u^rk group). Factors tn the second class are part of the personal character-
isucs of rhe (locus of c-ina-.)], esjwricnce, and percxi\-cd ability). Essentially,
dK thcorv proposes tlun leader behaviors should coinpleraent ihcsc contingency vari-
ables. .So rhe leader will be ineffective when his or her behavior is redundant with
sources of enviroiuneiittl structure or incongruent wirh subordinate characteristics.
The following are examples of hypt.-theses that have evolved out of path-g,)a|
riieorv.

• Djrecnv’e leadership leads lo greater sausftiction when tasks are ambiguous or snet-
ful dial I when thev’ arc highly strucnired suid well laid out.

Supportive leadership results in high employee performance and sausracuoii when sub*
ordijutes are perfonning structured tasks. (Lxadership complement

■ Directive leadcrsliip is environment.)

likely to be Ledundanl ajiiong subordinates wiui nigh ability’
or with considerable ^perieace.

■ The dearer and more bnreaticradc the fornxal au±ority rcladonsiii|K», the more leul-
ers should exliibit supportive behavior and deeiiijihasizc tiireceive behavior.

■ Directive leadership will lead to higher employee sadsfacrion when there is subsian'
tivc conflict within a work group.

EXHIBIT 10-3 The Rath-Go a I

Theory
--------------------------------------------
/• ------------------------- -X
A
Environmental contingency Factors
• Task structure
• Formal authoney system
• Work group

Leader behavior )
«Directive ' f ------------------------- -
• Supoorrrv# s
Outcomes
• Participative L > • rorrormanco
J Achievoment-orlgfned • Sedsbetion i
V, ___________

[ Subordinate contingeficy factors^

: * Locus of control
Experience
Ptreerved ability

J
 Ch^ir 10 LvidcnhSp and
Creathii T
Siib-»rdinateswirh Jin internal locus of cnntml/rh 4.
OW’D destiny) will be mott satisfied with a Relieve they COOTTO) their
’ Ptninpaovp st\ic.
Suhordinaws with an cxccml locus of con&nl u
• Achie^TinenT-onented
u. k-jdershin will incn>^o. -,.u 4 "»«« wiA , Arectiv.
Je3d to high perfonnance wfc.„
Rc^arch rn validate hypotheses such as tK^. u
^„.x. supfxtm Che logic underlying rhe theory That is "npio ^X^t^fncel^S
^asfentou .re likely ro be ,»s.uvely influenced when the leader ?o.np««t” S
d^gs lacking m either the employee or the work setting. Hwem. the leader w5^
.peuds time « x,.laming tasks w hen tht«e tasks arc- alrea.ly clear or when the employee
has the ability and expenence lo handle them without interterence is likely to be seen
as redundant or even insulting, '

Leader-Participation Model
In J973 Victor Vroom ind Phillip Yerton developed a leader-jwrticipation model
that related leadership behavior and participation in decision making J ‘ Recogniimg
that task smitTures have varying demands for routine and nonroudne activities, these
researchers argued that leader behavior must adjust to reflect the task struci-ure.
Vroom and Yettnn’s IIKHICI was norruadve—ii provided a sequential set of rules chat
should be followed in determining the form and amount of jKirricipacion in decision
makings as determined by different cy-pes of situations. The model was a decision tree
incorporating seven contingencies {whose rcleviUive could IK identified by malnng
‘^es" or “no” choices) and five altemaavc leadership styles.
More recent work by V^ruom and Arthur Jagu has resulted in a revision of this
model.The new model retains the same five altemaDve leadership swles—from the
leaders making the decision completely by himself or hei’scEto sharing the problem
with the group and developing a consensus decision—but expands the contingency
I'ariables to 12. These arc listctl in EKhibii 1fl-4.
Research testing both the original and revised Icadcr-parricipation models has
been encouraging. But» unfortunately, the model is far too complex for the typical
manager to use on a regular bxsis. In fact, Vroom -and Jago have developed a com-
puter program to guide managers through all the decisi<m branches in the revised
niixlel.
VVe obviously can't do justice to the moclcfs sophistication in this discussion.
What’s important, however, is that Vroom and his associates have provided us wit
**ne solid, empirically supported insighw into contingency variables that you should
consider when choosing your leadership snle.

(lender As a Contingency Variable: Do Males

^nd Females Lead Diirerently?
extensive review of the liter.cure suggests two c<«ci™
•^dership First, the similanhes between mens and womens ieadcrsh.p «"d
“> ***r»ciph the differences. Second, wh.t differences dtere
•«>*n prehT a democratic leadership style, whereas n.en feel more comfortable w,th

’ Arectn^ >n4e.
 •<
Gnrtfw «cbc Ofwiiatiw
EXHIBIT 1(M CantingencyVaiiabtes in the Rewired Leader-Ranidpatk>n Mwbt

Immwtance nflhedewiiHi
1
. 11H mlinate crtmm i wnr niio t he ikcwwr
2. ehc suttiouin inl^rf’maiinn ui c«*aU a |«xl decwnn
Impona«eo/n)»»imnp«
3.
i
Hnu *i.ri tiiwniml die ppyblom ts
4. Whether ail wwcntk- dcc-.siun would rc<d« sub«xd«iuw wmmihiienl
5.
UTiciher *ob.i<dinU» “buy mnf Hw u.yaniaaoon^ IP'*’*
6.
Wluiliei (here « lively ui be vonfl.ri inicng subordinates <rvcr s-Jun.m
7-
elirnmves
8.
M'httbersuUKdmatesMw* ih<.« netes^arv informatiiin co make a good
9.
<Uxi«on
to.
lune cunstrainbon the k-ader chat m.i> hm.t sabitriUtiaw uisukemcnt
11.
V^Tiethcf evsK ui bringing .bsxrscl ^ibunbnaie. u.geiher err
12.
pMi^ed
Snorw BAsftd on v.H, Vfoom aM A.S. Jafc, We Wew tewtenh-p: ftre«awtoi^ lo
to Che leader of minimixing the dme ir take^ to makv the decision
0/^»a«tof$ (Upper SMOIQ
Iri.p.iri^nc^
Rluer.HJ: PnwceofHaH.
ircing {Mink'ijMihwi
198S). PP n M as I2;a liiid
cool V.H.Vraoiii
for Je»xloping
andsubordinate
W Yettan, tfliWws/J/p
dwsion skilk
enrfOwisraft AfaWflg (PHttbuffr
Uni-«ci> o( PlTS»gn PKSS 1573). p. 154 Reprx'teP bv perffihslon of We Unkersity of
PttsbufB^ € 19/3 by
I'he similannes among men anti women leaders shouldn't be completely sur-
dniwilty
ofPinsbufSA Pic^
prising. zAlmosc all the swdies Inoking at this issue have used managerial posinoits
being ^yiiunyiiioiis with leadership. As such, gender differences apparent in lhe gen-
cnil populauoii don't tend co he cvideni. Why? Be<.*ausc of career self-sc lection and
organization selection. Just as people who choose careers in law enforcement or civil
engineering have a lol in common, so do individuals who choose managerial careers.
People wiili rraits associated with leadership -such as intelligence, confidence, and
sociabiiin*—are likdy to be perceived as leaders and encouraged co pursue careers m
which they can exert leadership. ’Tins is true nowadays regardless of gender.
Similarly, organizations tend to recruit and promote into leadership positions pco-
pie who project leadership attributes. The result is that, regartlless of gender, those
who achieve formal leadership posiuuns in organizations tend to be more alike dun
different.
Despite the previous conclusion, f^iudies indicate some differences in the
inherent leadership st)des of women and men. Women encourage participali(Mi,
share power and information, and attempt to enhance followers* self-w'onh. They
prefer to lead through indusioa and rely on their charisma, expertise, contacts, and
interpersonal skills lo infiuence others. .Men, on the other hand, are mure likely to
u.e a directive command-and-corurol style. They rely on the formal authori^ of
their p^inon Inr rheir influence ba.se. Consistent with onr first conclusion, how-
ever, t esc ndings need in l^e ijualified. 7 he lendcnttv for female leaders to
more demot rauc than males declines when women .ire m male-dominated jobs.
App^arent y. group norms and masc'oline stereotypes of leaders override personal
pre ereuces so ai women abandon their feminine .styles in such jobs and act more
autocratically. ’
m hisioncaliv held the great majority of leadership position*
between rnfn^ J tanpting to assume that ihe existence of the noted difference*
^y7or« automatically work to favor men. h doesn't. In
today s orga,uzatmn.s. ficxibihty. teamwork, irusi, and informauon-sharing are repb>
 10 Ciwirw'
npd siruu^rcis competitive individualism cmw, i □ '•B
fi’^Tcn to. motivate, and prm',<lc suppqn for tlwi> ’ * i
„, do rh<«e things Iwncr than men. 4s a specific Ii *omen seem
fiincniinal teams in organizauons means that use of cixw-
ncvod«tors I’hv leadership styles Honiun iVDicalk . ’’’UM ktome skillful
«„gd.... ...cn, «, they „<• l„. Hl.,, „. f.^u. ,tXri;:Z‘ “ "jr
Xh. -.her parn- a .inner ,n .K -

TTtAJTTHEORfES UPDATED:
CHARISMA riU LEADERSHIP
,U.«, o( the k;..krsh,p (heor.e^ di« ...s<.<i in this chapter have involved tntnsactiond
tade«. J hes^ people gt.idc nr mot.va.e their hdlowen in the .hrection oXui^
p«,,s by c anfy.ng role and task reqv.temenrs. There is another npe of leader'X
j„,p.reUn lowers to transcend the.r own self-.nterests fdr the good of the oreanwa-
ho,. and who is capable of having a profi,un<| and extraordinary effect on his or her
followers. 1 hew arc chansmatu or transformational leaders Jes.se Jackst.ii
VVinsKm Churchill, (.eneral Doughs MacArthur, and Franklin D. R.Kjsevelt are of
this latter type. By i he force of their personal abilities they transform ihcir followers
bj- raising the sense of the iniporrance and value of their tasks. “I’d walk through fire
if my boss asked me” is the kind of sujiport th.ii eharismatic leaders in.spire.
W'hat characteristics differentiate charismatic leaders from noneharismattc
ones? Five artrihurts seem mcist inipomnr^ ^

Se^-c^nftdefh'f: I hey have complete confidence in their judgment and ability.

-4 i7J7OTir 7'his is an idealized goal that proposes a future lx tier than the status
quo. The greater die disparity between this idealized goal and the status quo, the
more likely that followers will attribute extraordinary vision tu the leader.
Ln//v/ctio/f.f in rhar i^hfon: (Charismatic leaders are perceived as being
sinmgly efjinniitted. 'fhey are ptrcei\ed a.s willing to take on high personal risk
incur high ojsts. and engjige in scIf-sacrifice to achieve their vision.
Evm/ort/wf/n bchifviQr: Leaders with charisma engage in behavior chat is per-
ceived as novel, ujKonveniional, and counter to norms. VVTien successhil, these
behaviors evoke surprise and admiration in tollowers.
/wj(p iti a chitfifTf agenr. (;harisminic leaders arc perceivetl as agents of radical
change rather than as caretakers of the status quo.
WTtat can we sav alxiut the charismatic leader’s impact on bis oi her fidlow-
attitudes and behavior? One stmly found that followers of charismatic leaders
*prc more self-assured, experienced more meaningfulness m then work, reportei
supp,»n fr„n, their leaders, worked longer hours, saw thc.r leaders as nK.ru
;?’»m.c, and had higher performance ranngs than rhe followers of nonch n nc
vffaine leaders^- Another study found that people working
were more productive and satisfied than those working - J ‘^a^d
on the more traditional transactional behaviors of
^^Mderation.'- Two studies, of c.iurse, provide unly luw^iJ
.o generalize. V\e need m.n e research on this sub.cct, but the carh
• ^'tiuraging.
 ------------------------ ——1

'W*'' m <t«« ma MtK-vbte » rYlisbc,

i^cBr*. aftJ f^xMtfCO M nukx st happen-

.rSL^ Affcs tn-n odKf Rxms a«eu<*-«ung m several wa>v
kKdar »>< ct-Rwatns inw^r. dut ofler- m «> improve. MEKII
oa^aij diX?L t^J«M«>. *nd c««n«-o »

aJ^X tatbiisiasm «h»t pwiJe ha« h* spornng ev««s an*!i other ktant Ba«

Miriries, hmwins the c«w «<» commitnwit «» J*? »x«tpb«,--

Ibe Ln is««>erties of a >-i«« seem to be mspiranonal possiUhties that arc

«h.;-«fitcnid mJ reabnlJe mJ ha« superior imagwr and aniaJiQo^ VKW«
JMIUM be able to create ptwabihucs that are mspiraboiul and unique ami oftw a «
<nkr that pn^ioce cmniraboml Jistincoon. A vision is Ukch n» tail \f it
offer a Slew of the hmire dui K d«ri> and demoosmbh better for the nrgMuxawo
»d te rnrrnl^r^ Dcmbfe viswos fit the dmo and arcunisunccs and refleet the
ODKjBeoess of the unranizarHVi. People in rhe urgaruMOvn must also heliet'c that the
veNQ is attainable. It shewdd be pereenw^ as chalfenpng v-et doal>k. \'isions that have
dear anienhrinn aod po«TTtuJ imagery are nH>re ca^y grasped and aevepted.
XXTttt are some examples of viaoos? -Mary Kay Ash > vision of Mx>men as eooe-
pmeurs seUn^ prodoers dur improre their sebF-image ga>*e impetus to her eosmetia
onptfiy. Jidin Oiamber^ CEO of Cisco Sj’smns. is creating a \T$ion of how oct-
voris can trausforiii busines hnrr;. And Steve Case* the CEO ot AOL, envisioRS hs
frtn leading the tnittnnation ncsoluiion b)* merging .AOL with Time M anter.
M*hat skills do visionaA* leaders exhibit? Oniv rhe vision is idendfletL these
leaden appear to ha* e three qualibes (hat are related tu effocti* eness in their viMociarT
Fwsr is the abdin to aq)laiii the vision u> others. Ihe leader needs ro make the
vision dear in terms of required acticais and aims through dear oral and uTitten cuni-
mtuucatKNi. Second is co be able to es^mss die n$i4Xi not just \*<rbalh’ but rhroc^ the
leaders behavior. This requires behaving in uav-s rfut conti&ualK* njn*xy and re®’
fcree the \iskin. The third still is being able to extend Ae nsicn to different leader-
ship amun^ Ths s the abihty to order acth'idcs sn Ae vision can he apph^ * *
raricty of snuanom.

TEAM LIADERSI UP
uxretiiAgi) ukii^ fdice wtrhia 3 team conreiL L’nfonunatvh*.
an.. n<w cqwppcd ro h^dte the dungt to teams. .\s one prominent consuh*
flR rh^ ^fwbk Qunagers ha%e tnxible nuking the tran^noo heo®^

en«x«^ to Jo hefurt *
 , ij , MptWIO LeadershtpandCreatiiia
Iriisc 143
4nod>er 15 percent could never lead a team be«u«. .
rrhcy’re unable to sublimate their doniinatinr.
•rt,e,i dicres ihax huge group io the iniddi,.. Te^./i ..T W””!-
to dien't ^ndership dciesift conw nucundly
The chnJ kngv Ixkr mosi nianaffcrs, thvn i.
r^dfit leader. ’They hdKe to karn skills such as th/^ J*' to h^txinw an effccuvc
SM others, LO gn-e up audutrity. and undeimXX -'‘^nuation, to
leaders have mastered ihc difficult bahncbie act of I,, ‘’"u^ ‘"'‘^tvene. Effeedve
XS ond when to int.-rccdc. New team JdeS Sav^'
flomer M aKinbcrs need more initonomv <ir rh^ w>ntrol at
X w^en rhe tea... needs s„p,vvrt and h^ ■ «
A snidy of 20 organizations that had reorganized tbe.melvcs nround teams
«nam common responsih.l.ttes that all leailet. had to assume. These inX.S
coaching, (acliMring. handling dBapi,nary problems, reviewing team/individt.al ue,-
fonnance, traimng and commuucat.on.^^ Many of these responsibilities apply to
managers in general. A more meaiiingftil way to de^n-ibe the team lender's job is to
fpcus yn rwo pnoriries: managing the team’s exienial boundary and fadlitating Ac
ream pjx»cess.' We’ve broken Aesc priorities down into tour specific roles,
first, ream leaders arc //flirow tivr/; ccn^tfni^netes, These invUide tipper
nwnagement, odier internal teams, eustnincrs. and suppliers. ‘I hc leader represents
die team to odier constituencies, secures needed resources, clarifies athei-s' e.^pecta-
honi rtf the team, gathers inibrinatitm from Ac outside, and shares this infonnacion
u’iA team members.
Second, ream leaders are frrrwWt’'.?Z»'?r?r<T.^, Wien the team has problems and asks
for assistance, team leaders .sir in on meetings and help try to resolve Ac problems,
This rarclv relates to technical or operation issues. Why? Because the team members
hpically know more about Ae tasks being done than does rhe team leader. Where
Ac leader is most likely to contribute is by asking penetrating questions, helping Ac
team lalk ihrough problems, and by getting needed resources from external con-
stituencies. For instance, when a team in an aerospace firm (ound itself short-handed,
its team leader took responsibility for getting more staff. He presented die team’s
case to upper management and got the approval through rhe company’s human
resources depariineni. .iui
Third, team leaders are cor/fiict nidtMirar. WTien disagreements surtace, tJicy help
IXGccss the conflict. W’hai’s Ae source of the conflict? Who is involved? What ai e the
issues? VVhat resolution options arc available? Wnt are the advaniitges and
tapes of each? Ky getting team members to address questions such as these,
minimizes the disniptivc asirects of intraieninfonllicts. „
Finally, team leaders They danfy expecmtuins
WP«n;, cheerlead, and whatever else is necessary to help team

their work perforniaiiee.

IS LEADERSHIP ALWAYS RELEVANT?

<-'nttrarj to the emphasis in this chapter. "XmaX'sin.ationi what-
Ihia from numerous studies collectively demonstr organiza-
behaviors leaders exhibit are ?L±J± Z’che’ffinnal leader’s
“«»l 'iriablB. can a« as sulKtitutes lor leadership, neganng
2.-

..
..
*
tatW 1”'”“ •" -1
effectiveness.-'’ .^-eristics of ^uix.r.linatcs sudi » experience, training, ’
c '?Tenrari?.n or need for indcpenticnce can neuaalizx; the effect <rf leader,
pn.fessional nnetitar . leader’s sup|K>rt or ability u,
'‘’^'Sid^'d.KX task -ambiinikv. Similarly, pc-k’l'' )<->« ^'c inherentj,
ate smirtun. an .ntrinsiwlly satisfying may have little need f,< ,
leX Siv tiranisationa) characteristics stich as expllctt fornuhzed girals, rigid
X nd proe'edur'es. or cohes.t e work grou,« can act m the place of formal leailcnhip.
Thc^rcccding comments should not he sorpHSing, Alter ail. .n (.hapter 2 and
sttbsequen; chapters, wc introduced independent variables that have been d,^
roented to have an impact on employee performance and satislaction. Yet siipp.nen
of the leadenhip concept have tended to place an undue htink-n on this vanahle fee
explaining and predicting behavior. It’s too siiuphstic to consnler sulwrdirwa as
being guided &> goal accomplishment solely on the l>asis of the behavior of their
leader. It’s important, therefore, to recognize explicitly that leadership is merely
another iiidependenr variable in explaining organizational Itehavior. In some situa-
tions, it may contribute a lol toward explaining employee productivity, absence,
turnover, and satishteuon; but in other situations, it may contribute litde toward iha

end.
Even chirismatic kadcrdiip xnay noi be ihc panacea that many in the public and
die media think k is. Charismadc leaders may be ideal for pulling a gruup or
zadon tliroiigh a ends, but thev often pcrfc»nn pxirly after the cnsis subsides and
ordinarj' conditions return. The forceful, confident behavior that was needed during
the cri.sis now’ becomes a liability. Charismatic managers are often self-possessed,
autocratic, and given to thinking that their opinions have a greater degree of certainty
than they merit. These l>ehaviors then tend to drive good people away and can lead
their organi^aticms dow n dangerous paths.

TRUST AND LEADERSHIP

Trust, or lack of trust, is an increasingly important issue for today's managers. In the
reiudinder of this chapter, we define what tmsr is and provide you with some guide*
lines for helping to build credibility and trust

Miai Is Trust?
IriMt is a positive cx|)ectatian that another w ill nor—through words, actions or
Sinns act opportunisiicallyz' The two most imfxirtant eleinencs of our defifti6oo>>
that jt implies fomiiiariiy and risk.
The phrase f^in t apectatiun in our definirion assumes know ledge and familir'

1?™’;*!“' « a bistory-dcptndeni pnx-xss based rm relevant bet

I o experience, fr takes rime to fbnn, building incrcmentallv and actu-

muiatingi Most of us find it hard, if not impr«sihlc, to trust someone im^ediarcl) i/

matures we gam confidence tn our ability to have a pr^itive expecution

tiwrii ttsk anT^er^khiv in «>

™ng reboonship. frust mvolvcs making oneself vulnerable as uh.„

 ClM0crlo
we nnunatc in.bnnanon ..r on
BUS. pr-v-Je' the opi’t’rtuniiy fo, »»KKhep^ pfWWM. Hv i-
tni« n<>( fating rist per sr rather ■»«,
someone, 1 expect that they will „<>[ ,1'' ® M ®”‘
Unaf arc the tci . ’*5'>e« to>
dertce has i</erTdffed five: integnn^ co,” ^<lcrhe the con<^
(« Exhibit J If.,'=«»’P«i‘mce, consixte^
/nrfgnty refers to honcsn and tniri fi . ’’’
swms a, l« fn<r<t critical when wmeonT?*^'^"''”- dimensions .k
a jxnxrpuon ,,l ai<= others -mor,! charaV^'''^ ’noOier's Wsry^vnhine^s ••Mrth"*
trust Ijnl mcanmeicss. h.mestj,- dimensi .tTf

encompasses en indivuluars technical and inrerpcnsonal knowledge

and sblh. Df»es rhe person know what he or she is talking abouir You’re unlikely TO

listen lo or depend on soinc«»ne whose abihhci» you don’t respect. You need to
helie'*^ person has rhe skills and abilities to earr)* out what he Of she says
ihc) mil do.
Ctznfnfwc' relates TO an indisiduafs reHabilirv. predictahilit), and good iudgmeiu
in handling situations. ’’Inconsistencies between words and acnon decrease trust."^^
This dimension is particularly relevant for managers. “Nothing is noticed more
qoickb*... than a discrepancy between what executives preach and what dwy expect
their 3.s!Kx;iaic.s to practice.*’^
LoM/fv i** the willingness to protect and save fece for another person. Trust
requires that you can depend on Mimeonc not tu act op]xtmmjsucall>;
The final dimension of trust is Can you rely on the person to give you
the full truth?

EXHIBIT 10-5 Trust Dimensions

tart Bl Grooptir the Orgmiw^rion
Ihist and Leaderslup ,
h , ...imiA- iltrihute with kaderslup. - WTwn fi.llowe„
willing w be vulnerable t<) the Iwder’s uvuuns^unfid.-nt
n^si he abused. People are unlikely to bok up u. or fo|l.«
their nxhL'pereeise- as dishonest or who is likely to take advantage <.f them,
^"v kJ .n.sumi,^-..si.srendy ranks at Ute r-tp of ntost people's kst of c^.ra^
oes UieJaihnire in d.eir leaders. “Honesty is absolutely csst-.t.iai leadechip. II
S arJgouig to foMow S'«ueonc willingly, whether .the into l«tUe or^to rhe b.«rd-
nioin, UKV Lt want m assure themselves that the person ts worthy of the.r

Tliree Types of Trust

There are three npes of tn.st in organizao.tnal rdationshtpsi rkrerjrw.-f.lwsed.

i;r«i7eJw-bajed, ami ;JeflZ»/?w««»-ba.scd. ‘^The following analysis asst.mes two panjc*
are enrenng into a new relationship. They have no preenons ex(KTiences ro mcrewne;
thev're vnrerniin about each other, they believe they’re vulnerable if they dtsclosc too
much roo qnicHy; and Uicy’rc uncertain about the longevity of die relationship.

Dcterpcnce-Based Trust The most fragile relationships are contained in deterrence-

based trust. One violation or inconsistency can destroy the relationship. This tnrmof
misr is based on fear of reprisal if tlie trust is violated. Individuals who are in this type
of relacionahip do what they say because they fear the consequences Irom not fbllow-
iiig through on their obhff^fions.
Deterrence-ha irusi uni I work only lo the degree ihni punish mem is possible,
ajnsequencc-s air dear, and die puiiishiiiem is actually imposed il die crust is violated.
To be sust^ained, the potential loss of ftinirc intcracdon with ihe other party must out-
weigh the profit potenrial that comes from noJadiigcxpcctadotis. aVtorcover. the poien-
daJly harmed part)’ must l>e willing co introduce harm (for example. I haxe iiu qtialins
about speaking badlv of you if you l^efray my trust J to the person actins disirustiagly.
A'losi new relationships begin on a base of deterrence. ’lijke, ab an ill us tn linn, a
situation in M’hich you're selling your car to a friend of a friend. You don^ know the
buyer. You might be morivated to refrain from telling this buyer all the problems with
the car that you know ahour Such behavior would increase ynur chances of selling Ac
car and securing the highest price. But yi>u don’t withhold iiiformarion. You openly
share the cars flaw^. XYhy? Probably because of fear of reprisal. If die buyer later
rfiinks you deceived him, he is likely to share this with ynur mutual friend. Ifyou knew
Ail the buyer would never say any^iing to the inntudl friend, you might be tempted
to take advantage of rhe nppoi runity. If ii’s clear dur rhe buyer would tell and that
your inunul friend would chink considerably less of you for taking advantage of this
buyer-friend, your honest)’ could be explained in deterrence tenns.
Anudier example ot deterrence-bxsed tniM is a new manager-employee rebritwf
shi^ A« an employee, you typically mist a new Ixss ev cn A< nigh Acre is liltic experiviK^
to Aar trot on. The IJOIHI that creates Ais trust Hes in Ac anthonn’ held b Ae
and Ac piiniAment he or she can impose ifyou fail to fulfill vour job-related oblipdons.
iOiwIedgc-B^ Trust .Mow oi^izational relationships are nKXwJ in LncMt'ledge*
Aat is. ti^M ,s bas^ on Ae lx:havioral prcdiaabtlitv Aat comes from i
I' when you have adequate .nfonnabon abtxut someimt lo
untieretand them well enough to he able w a«^rately predict their behavior.

•
<
»
 ,, . . Chapter w LoderAip .nd Ihii
Knt.wledge-based trust reli« „„ • ,
,;n,«vle<lge of ihe other party and predictahilitv of r‘'««’Ten«.
n.ntmcw. powJucs. and legal arrangumejns nv.re n?” *’r 7\replaces the
•| h»^ drvel(,pi» over dint, hrgeiv a« « ueUTrence-basvd Wu«.
0)ftfidcn< c of trustw<»rthincss .md prcdictabilkv ’'^€’|*ncnt:e dut builds
ntopc acnirau-ly you can predict what he w she wil! **’««**•
.fd.c otherpredictably untrustuoX-i Prcthetalnlity enhances
violate rhe it ustcin be predicted! The niore i n™,. ’^ai thf'>6er
voc have with Mmicoiie else, the more this forn mterac-
jepended on. ’■« develope.l and
InrtTx^stjnglv, jt dw krH>viedce-ba^d b.i-ri . ■
,„^ns..em bebav,or. If yon hc.L yon
another, apparent colaco,,, you can accept it. forgive the person and move cut in the
Har».nsh.p However, the same inconststency at the deterrence level is likely tn inev-
4k.'ahly break the trust.
'In an organ,rational context, most manager-employee relationships are
knowlcdge-bH^ed. Both parties have enough experience working with each other
th.ir the)’ knnu- what to expect A long history of consistently open and hon«r inter-
flcrions. for instance, is not lihck to be jxrmanrntly destroyed liy a single violauon.

Idcnrification-Based Trust I he highest level of trust is achieved when there is an

cmuiinnal conneetion betueen the piirnes. h allows one party lo act as an agent tor
the other and Mih.'juniie fur that person in iinerpersonal transac-’tions. This k called
xdefid Read on "based trust. Trust exists because ihc parties uiulcrstand each orher’s
intenliuib and appreciate the other’s wants and dcsire.s. This mutual understanding is
developed to the point that each cm effectively act for the other
Cnntrob are minimal at this level. You don’t need to inonuor the other party'
bnause there e.visrs unquesrioned loj'alcy.
The best example of id cnufication-leased trust is a long-term, happily man led
coupk'. A hiisbiind comes to learn whafs important to his wife and and cipaces those
anions. She, in curn» trusts that he will anticipate what’s imporf.ini to her without hav-
ing to ask. Increased idenrillcation enables each to think like the other, feel like the
□(her, and respond like the other.
You sec i<lennfication*based mist occasionally m organizations among people
who have worked together for long periods of uine and have a depth of expenence
dui allows them to know each other in.side and nut. This is also the type of trust that
mwagers ideaUv seek in teams. Team members arc so comfortable and, trusting ol
-^ch other that thev can anticipate each other and freely act m each odiers ahseiuc.

How Do Vou Build Trust?

M-gets who have learned to build trusting
Prauttces. The following suminaiires what y«.u can do to cmuLu these

'tuiugers.*’

„ Vi #r„.n what people don’t iotow as from

Pranue opennra. Mistrust comes as [^rrain the criteriahow
*hat they do know. So keep people into , rationale for vour decisions be
•fceisums- are ma.Ie are overtly clear.
candid about pn.ble.ns, and fully disclose relevant
Groups m the Or^iuQon

S^crivc an.1 imp^rdul in JK. fcn>i.mce appr.-.als, .nd pay attenunn to eq,u,y '

?;XS'S^Sl-S'XS>nv.^ only h.rd fact. con. acn^ as col^,

St Ll-'you share «,«r feelings, others w.ll see you a.s and hu.aan. Thtj-
will kn..« who vHu are and their rcs[*« for you wjlhncrcase.
Tell rhf mub. If integritv is critical to trust, you otust be {.rceived as someone
who tells the truth. People are geneiaUy more tolerant of learning somcthlog
they “don't want lo hear*’ than finding out that their manager lied to them,
SZ-ru n-zwtrfeno- People want predirtahiliiy. Tate the ume tn think about your
values aiKi beiiets. Then let them consistently guide your decisions
FtdliUya»r ii-ust requires that people believe that you are dependable.
So you need to ensure lhat you keep your word and commitments. Promises
nudv must be pn)nuscs kept.
Mfji/ft/ffjf iwfiileaees. People trust those who arc discicct and uptm whom they
can rely. IfiKople make themselves vulnerable by telling you something in con-
fit fence, I hey need to feel assured tliat you will n<n diseuss it with oihcrs or
hvti’ay chat confidence.
[kwfirjmuf C0»rpefme. Develop the a dm i rati on and respect nf others by dcin^ir-
srr^mnff technical and professional ability'. Pay particular atreniion to developing
and (iisplayinff vour conmuinication, negotiating, ami other interpersonal skills.

IMPLICATIONS FOR MANAGERS

The topic of leadership certainly doesn’t lack for theories. But from an
ovcr\’iew pers-peedve. what does it all mean? Let’s cry^ to idendfy* commonalities
among the leadership dieories and anempt to detenninc wdiat, if any, practical
value the theories hold for managers.
(Careful examinaiinn discloses that the concepts of “cask'’ and ‘‘people’’—
often expressed in more elaborate terms diat hold substanuaiiy the same mean-
ing—permeate most nf the theories. I'he task dimension is called just that by
Fiedler, bur it goes by the name of “initiating stmciLire” for the Ohio State
group, “directive” by path-goal .supporters, “production orientation” by the
Michigan researchers, and “concern for production” by Blake and Mouton. The
people dinicnstun gets similar treatment, going under such aliases ns •\onsidct-
arion. siipponive.’ and “employee-oriented” ur “relationship-ortentcd” lead-
ership. Clearly, leadership behaviur can be shi-unk dowm to two dimensions—
task and people—Inn ixscarchcrs uomiiiue t,, difter a-; to whether the
oncntarions arc ewn ends ot a single voiirinuuni (you could be high on one «r the
other but not on both) or two independent dimensions (vou ctnild he hieh «>r
Inw on bodi). '
How iJiould we interpret rhe findings presented ,n dii.s chapter? Some traits
Jute ^en shown, over tuiic, to be modest predictors of leadership effectiveness.
But the ra« that a manager possessed intcUigence. drive, self-confidence, or the
like would no ^ans assure us that his or her siibonlinates would IK- nnMlucQ«
X’"*-" le.den4.lp .
 Chapter 10 Leadersh^ wd Cresting Tma
The early lask/peoplc anor,«..k„ , ,
ri*l grid thoM-iw,) al»> ..ffer us Utrlc •'^’'chiMn and
make on the basis of these theories is >l t"'*' sirongesr •‘’’"•ge-
tanonshouW end up with satisfied * '‘’ho ra J h; i ean
Jnuluccs in- and san^hicX;-or the
iho ,,<.,..1 ,,. do„l„p o-ono„B,„^"i7 ''’‘''»>»P 0,0.0 when „
A, e^enr. ,h. erido,,., i„di/,,,?,~*«W «n.,u.„i

d.,r«ten»„, snob Md^S"'’ '"«»«■ «< follower

J we dhvussed the role ih,« tn.s/n? I ^•
^rs tnday z«u«t tk-veJop trustingrdariondnps S d' nan-
Bwause organrzanons hare heeomc Ic® suf, ««k to lead. Why?
WW« are replacing bureaucratic rales iti definin? strong bonds of
“etuTwg expectations and relationships.
 4
.
1

1
« CHAPTER11
►
v.

s.

Power
*< and Politics
Abe' reading this chapter you should be able to

Define power

Describe the five bases of power

Explain what creates dependency in power relationships

Describe how power is central to understanding sexual harassment

•1 Define political behavior

*1 ■
A
• Describe the importance of a political perspective
! 1. Explain the factors contributing to political behavior in organizations

Identify seven techniques for managing the impression you make on others

JjmifiT may he ihc last dirty word. It is easier for most of its to talk alxjut monq* or
X even sex than u is to talk about power. People who have it deny it; people who
want it Uy to appear not to be seeking it; and those who are good at getting it ate
setTetive nbouc how they got it.’
In this chapter, we show iliar pr)wer detennines what goals a gr<’“P pursue
and how the group’s resources will be distributed among its members. Further,
’^^einbers wiiJi good political skills use their power to influence the
djstnhutUHi of reMjurces in thek favor.

A DEFINITION OF POWER
Hower refers to a < that z\ has to influence the behavior of B so that B A**
tha ’«•« -lefinition implies d) a pvrr««-/
that need not he actuiluxd to Int effutive. (2 > a ,/.pe.de»ee rclarion'h.p, and ( b lha» »
 Chapter n p<nver,nd Pohrict
h« some over his or her own liehivior Leti, 1
more closely. look at eadi of these (xiim,
powxr may exist bui nor be used. It is, therefor^
have puwer bur not impose it. ’ ‘•’"picny or ixitendat. One can
Pn,^iWy the most important aspen of power • •
dence. 'Hie grvflter R’s depcntlcncc on A. the greater i v' of depen-
PcpeiicJt^H’f^’ in lum, i.s based on idiernativcs that B DC ^ * Pf>*cr in the relationship.
B pbces on the iiltemncves tliar A controls. A oerson unponance that
he ,ir she controls something ym, desire. If you wanr you only if
a certain course lo gel that degree, and vour cun-ent
member m the uinversii y who tenches that course lie or shr h' '''
jlrernatives arc dcr.nkel,. limited, and you place a 5-cr you. Your
olitaiiiitig 3 passing grade. Similarly, if youn. attending umve^sitv im
entirely by your purems v-ou probably recognize the power thev bold over yor^bu^e
dependent mr them for financial supyx-rt. But once you're out of school have a ?ob
are making :i .solid income, your parents' power is miuced sigmficamly \ko
among us. though, has not known or heard of the rich relative who is able to control a
lanje number ol fanuly members merely through the implicit or explicit tlircat of
writing them out ol the will?
For A to gel B to do soineching be or she nrherwise wodd not do means B musr
hai’t the discretion to make choices. At the extreme, if B\ job hehatdor is so pro-
grainincd that he is billowed no room tu make choices, he ohvimisly is constrained in
his flliiljiY co do something other than w'hat he is tiointt. For instance, inb descriptions,
group norms, nrganizarional rules and rcgulaiions, as well as coniniunity laws and
standards cons I rain people’s chokes. As a nurse, you may be dependent on your super^
riser for continued employment. Bui, in spite of this dependence, you’re unlikely to
comply with her request to perform heart ^surgery on a patient or steal .several thou-
sand dollars from petty* cash. Your job description and laws against stealing constrain
your a bl I it)' to make those choices.

CONTRASTING LEADERSHIP AND POWER

A careful comparison of our description of power with our description of leadership in
the prerious chapter should bring the recognition that the two concepts are cktsely
intertwined. Leaders use power as a way to attain group goals, and power is a meins
br faciliuting dicir adiicvcmcnt. j.. ..
differences are there between leadership and powerr One diherence is
relited to goal compatibility. Power does not require goal compatibility, mercy
dependenc-e. Leadership, on die other hand, rejuires sonic
polls of the leader and those of the led. The other difference deals withL the dn^^
that research on the ru’o concepts has taken. Leadership researci, or g
^tnphasizes style. It seeks answers to questions such as: How ,upp
Ittader he? How much decision making should be share wi
the research on power has teinled to encompass a c-,erciser because
for gaining compliance. It has gone beyim c ^n ' i„jividuals or
^’’■»vr can lx; used by groups as well as by individuals to tonm.i ntnu
 .. A 1

<•
**
hrtm Cirom ia d« A

BASES OF POWER
WTterc docs power come from? '' Hm is it that gives an individual or a group tnfl,«„cj
V\-hcrcdocs p< t q„esn<nis is a five-category dussifioanon scbeaie
"Jnti'Shv lohn frerx-h nnd Bertram Raven .-’ T hey proposext '>T« of o,
™ of ™;wer: coercive, reward, legitinitiU, expert, and referent (see Lxiul«t U-l,.

Coercive rOM’cr
l-he etavreive power base is delmed by^ French and Raven as being dependent o„
tear One reacts n, this power out of fear of the neganvc results that might oenir if
one fiaded to comply. It rests on tlie appiu ai ion, or the threat of application, of phy^
ital sanctions such as UK inflicn.in of pain, the gencn.tion of frustration through
of movcincni. or the control ling In force of basic phy’siological or Mfcty

In die 19305, when J<jhn Dillinger went into a bank, held a gun to a teller’s head,
and asked for money, be was incredibly successful at getting compliance with his
requesL His jxiwer tec was coercive. A loaded gun gives its holder power because
others are fearfo! that they will lose something that they hold dear—their iKes.

Of all the bases of pos^xr available . .. , the p<wcr tn hurt others is possibly most
often u«ed, most often condemned, and most difficult to control . . The state
rehes on its military and kgal resmircrs to iuiiuiidate naliut»>, or even its own citi-
zens. Businesses rely upon the contiol ol ccojiojiiic resources- Schools and univer-
sjdes rely upon their rights to deny studcab fonual cducarion, while the church
thi catena individuals with loss of grace. .Ac the personal level, iadi vidua Is exercise
coercive power through a reliance upon phi'sical strength, veHial fa ci liny or the
ability to grart or widihohl emotional support frtirn i.ithers. Ihesc bases provide
the individual with the means m physically hanii, bully, humiliate, or deny Invc to
odtcrsc

At the organizational level, A has coercive power over B if A can dismiss, sus-
pend, or demote B, assuming that B values his or her job. SimilarJv, if A can assign B

EXHIBIT 11-1 Measuring Bases of Power

Does i have one or more of the five bases ..Pposirer’ Affiniiative responses to ilic
suRinvnts cin answer rhia question;
■ The pcR<m i-an make (hio^ tiifficulr for people, and you want to avoid ceding him or
her
angry (aieaivc powrr,
■ The |iri^ is able to pvc special benefits W fewa.O. to people, and v.w find U
adv«itags<.»«
r<> rratle favors wirh him or her (rv^ anJ power>
■ 1 he person has the right, etrnsidenng his or her p.skion and «.ur sob
re.potvsjbilines. to
expwt pm to crxiipfy wrh legiuniate requests (leptimaic power)
■ ^K- p^ has the experience and knowledge K> eui, war r«pe«. and W« defer to b» of
htr judgment in some matters (c«pen power)
a V.IU hke the persitn and enjoy d.«ng dunp K>r lum or her (referent
power)
Ae^ye«tB(,, Me IWl. p. an, Copynrit ©199l b, m. Menc.r, ^ychoKtgicai tesocMtM H«nnw -•

>
 Chapter 11 P«>weT and Pnlitx*^
activities dwt B finds unpkasunt nr treat B in a maiwer that H
Ing. A possew.*! coercive power (»vcr B. embarrass-

Reward Powe
B
L
The ..pi-s- e of n.eravc power .s rewani power. People comply with the wish« „r
aireu.vcs ol an<,thcH-cc3Usc domg so prodoces positive benefits; therefore one who
can dismb’itc
.hsmbotc rewards chat
rewards thaco(hei> view view
othe.-s as valuab
as valuab e will have power over them The»
rewards can be anything rhat another pc-rson values. Tn an organizational ontext, w^
think of money, favorable perlonnancc appraisals, promotions, interesting work
assignments, friemlly colleagues, iinp.irtant information, and preferred work shifts or
sale^ rurniorics.
Oiercivc and reward power are atnmily counrerpam. If you csin remove scme-
thing of prisitive value from another or inflitT sonwdiing of negative value on him or
her. you have coercive power over that person. If you can give somwme something of
positive value or remove something of negative value, you have reward power over
that person. As with coercive power, you don’t need to be a manager to be able to exen
influence through rewards. Rewards such as friendliness, acceptance, and praise are
available m everyone in an organization. To die degree that an individual seeks such
rewards, your ability to give nr withhold them gives you power over that individual.

Legitimate Power
In Formal groups and organizations, probably the most frequent access to one or more
of the power bases is one's structural position. This is called legitimate power. It rep-
re sc nth the power a person receiver as a result of his or her position in the formal hier-
archy of an organization.
Positions nf authority include coercive and reward powers. Legitimate power,
however, is broader than the powers to coerce and reward. Specifically, it includes
acceptance by members of an organization of the authority of a position. \ATien school
principals, hank presidents, or ariny captains speak (assinning that their directives are
dewed to he within the authoring of their positions), teachers, icJlcrs, and first lieu-
tenants listen and usually comply.

Expert Powder
Expert power is influence wielded as a result of experose. special skill, or know ledge.
Expertise has become one of the most [powerful sources of Influence as the world has
hecotnc more technologically oriented. .As jobs become more specialized, we become
increasingly dependent on “experts” to achieve goals. So, just as physicians have
expertise and hence expert power—most of us follow’ the advice our doctor gi\es us
w too do computer specialists, tax accountants, solar engineers, industrial psycholo-
and other specialists.

Referent Power
last category' of influence that French and Raven idenofied w as
h« »identification with a person w ho has desirable resources oi’ pe™ m
I admire and identify with you, you can exercise power ovt^r me because I want
fdcaae yim.
MM Gfoaps in the Orfaoiution
. 1 . .^yJmiraiion of anoth<f and a desire
Referwt tM«xr rfevdops H,., d.^risinit- If y«>u admire ««nc.«c

Cin.lv Cm. lord, .nd M.choel.|..rdnn

3 h..e .he ^x.wcr to mflu.ncey..^
choice of pharm.cxuticak, he.kh clubs, and .thk-t.c sh.KS, y«.
or I wwid pn.hjblv dt i.vvr ns smooth 4 s,.lv> pitch as du-sv c.khntits. hut he 1,,^
jnil.lir .tocsn'i i.knrik .vid, vou and inc. In organizations, il you .ire articulate, dotni.
nccriug. physically imposing, or charismatic, you hold personal charatter.st.cs th«
may lie iistit to get others to do what y«Mi waiU.

DEPENDENCY: THE KEY TO POWER

Earlier in this chapter wc noted the iru|x>rtain relationship between power and depen-
dence. In this section, we show ht>w an uiiderstimding of drpe*n<lency is centra! tu fur-
thering our understanding of (Xiwcr itself.

The General Dependency Postulate

I>ets begin Vkidi a general postulate; Thedeffernkthy rui .1, the gf'ftftcrpirwtrA
bat ViH-r IT When you |Kksscss anything that orhers require hut d’lat you alone cniiccol,
you make them dependent on you and. therefore, you gain power over them?
De|>endency; then, js inversely proportional to the alternative sources of suppH. If
soiiK*thmg is plentiful, possession of ii will not increase your power. If everyone is
intelligent, intelligence gives no special advantage. Simibrl)^ among the super-rich,
money is no longer power. But, as the old saying goes, ‘in the land of the blind, the
one-ey’cd man is ting!” If you can create a monopoly by controlling infnrmaiinn, pres*
tige, or anything thai others crave, they Iwcome dependent on wu. Conveisely, the
more yuu can cx|und your options, the less power you place in the hands of olhers.
This principle explains, tor example, why so many of us aspire to financial indepen-
dence. Financial indc|K*ndence reduces rhe power odicrs can have over us.

VVTiat Creates Dependency?

Dependency is increased when the resource jvu control i.s important and jn/nt?
Importance If nobody wants u'hat ytju’ve gut, its not going to create dependent'-
Ju create de)xrndency, therefore, you nuist control things that are perceived as impor-
tant, Its been found, for instance, that organizations seek to avoid uncertainty*. Wc
should, rlierefore. expert that in<li vidua Is or groups who can atvsorb an organizations
uncenaints’ will be understood to control an iniporuat resource. For instance, a study
of industrial organizations found that the markedmr deparonents in these firms were
oonsistently raced as die most powerful. Tr was concluded by the researcher that the
most critical uncenainty facing these firms wus selling their products, This fact might
^ggest that, during a labor strike, the organizjjrion's negotiaiiug represenbutves have
greased power or that engineers, as a group, would he more powerful at Intel than at
^MXer & fiamhie. 1 hese inferences appear to be generally valid- Labor negoriau**
do become tnore powerful within rhe pcrMmnel area and the organization as a wlw^
 during periods ..f fehorsmfe. .An otgani^tion .uch as l . " Power,nd Pohu«
driven company, is dependent on its engineers t„ „ " ' is a tcchnologv.
at bH^'- arc clearly the most r,nwe?M ‘‘‘'‘■'’'J! *erc-
nwrkenng is rhe name uf rhe ga.„c, anj '^t I’ructer & Gamble,
These examples support not only die viess' that th ‘"'tr f^werful group,
iijcreases a groups miponancc and, hence, its power h L° "’’“ntinty
jguational. It varies among organixation.s and undo ? i. V“
witlun any gii’en organiMtion. ubtedly also vanes <jvcr rime
Spuxity -\s noted pi cvioasly, if something is nkntifi.i „
increase your power. A resource needs to be perceived as
This rehniuiship c.m help n> explain how l^-raiilrin<r m k?”dependency
ttho have important knowledge not available to high-ranld^rm"
p,w^r over the high-ranking mrmhen. The need to obtain a «
.mportam im^-fedge-.uukes the h,gh.rankmgt;:di:;;^;::::^:,^^
,anbng member. The relanon of scarcity u, dependcucy also helps make of
behavKirs ot low rankrng member, that otherwise might seem illogical, such as
destroying the procedure manual.s that describe how a job is done, reusing to train
people m their job or even to show others exactly what they do, creating spccialited
language and terminology that inhibit others from understanding iJieir jobs or oper-
ating in secrecy so that the activity will appear more complex and difficult than it
reaDyis.
The scarcity-dcpcndeiuy relationship van furihcr be seen in die |xiwer of occu-
padonal categories. Individuals in octnjp^atiuns in which the supply of personnel is low
relative lo demand can ncpjtiatc compensation ami benefit packages far nicire awrac-
ove than can those in occupations in which there is an abundance of candidates.
UnnersJ5' adniinistrainrs have no problem today finding English instructors. The
market for computer-science instructors, in contrast, is extremely tight, wnth the
demand high and the supply limited. The result is that the bargaining power of com-
puter-science faculty allows them to negotiate higher .salaries, lighter teaching loads,
and other benefits.

POWER IN GROUPS: COALITIONS

Those “out of power” and seeking to be “in” will first tn' to increase their power iadi-
ndually. Why spread the spoils if one doesn’t have to? Bur if this approach proves
ineffective, die alternative is to form a coalition. There is strength in numbers.
The natural wav to gain influence is to become a pi wcrholder. There orc, ose
who want power wnll anempr to build a personal power base. But, in
doing so mav be difficult, riskv. cosdv, or im|>ossiblc. In such cases, e o
nude ,o form a coalition of twa. or more "outs” who. by lomnig t-^ther. can each
hetwr themselves at the expense o1'those outside the coalmon.,
Historically, blue-aillar workers who were unsucce» u m reccut
•^n behalf w ith management resorted to labor unions to ^'’8^ ninied to unions
white.„,llar emplovees and professionals have greater
finding „ difficult to exert power mdividually to attain higher wages and gre
Wh« predicthms can we make about ^Sl^en^^ibeoty,
««« m cKganiaduns nhen seek to nuxinuxe their size, m po
Crmip> in the OrganiMtion
.. - u,- ..ther »-av—6ey rrv h> minimize their size. They tend to he RwW
„>abti«ns W'e ntcess^rv to achieve their obiccuvcs. But Icgislaijj W
"rSmrn from organizadons in that kpslarors make ite p.l.cj. decisi<m. il«t
th -n cSned out hv separate ad.moiaimtnrs or managers. Densn.n making .n organi.
a im " docs not end with merely scicermg from among a set of alternative. T,^
Son must also < implemented, fn organizations, the impkmemamn of a„d com-
niinnent to tiic decision are at least as important as ihc decision itself. Its necessary,
therefore for nsilidons in organizalions to seek a broad wnsanientv to support the
coalition’s obiccrives, so the coalition must be expanded w cnttmipass as many inter,
ests as possible Coaliiion expansion to facilitate consensus-building, of course, is
more likely to occur in organizational coiturcs in which cooperation, cuminimknt,
and shared decision making are highly valued than in autocratic and hierarchically
controlled organizations, where maximizing tlic coaiitionS, size is less likely t„ l,,
«)nghT.
Another prediuion about coalitiims is related to the degree of mterdcpcixleiKc
within rhe organization. More coalirions will likely be created where there is a great
deal of task and resource interdepcntlencc. In contrast, there will be less interdepen-
dence among subunits and le’is coalition formation activity where subunits are largely
self-contained or resources are abundant.
Finally, i<>aliri<in fi>rnuiiior^ will he influciK\:d by the actual tasks that workers
perform. The more routine the task of a grf>up, or the work of individual jobs, the
p-eater the Irkelihfiud thut coalitions will fonii. In nmtine situations, p’Oup tiiemhets
or workers are ‘^uhsrini table; thus, their dependence is greater than in non routine sir-
uaduns. To offset this dependence* they can be expected to resort to a coalition. We
see, therefore, that unions appeal more to low-skill and lionprofessional workenihaa
to skilled and pndessional c>T)CS. Of course, where the supplj’ of skilled and profes-
sional emplo)'ccs is high relative to their demand or w’here organizations have stan-
dardized u adirionally unique jobs, we would expect even these inciimhenis to find
unionization atiractive.

POWER AND SEXUAL HARASSME>JT

The issue of sexual harassment has received increasing attention by corporarioiis
the media liecause of the growing ranks of female employees, especially in noniradb
U on al work e nn rn n n icn ts.
legally, sexual harassment is defined as unw'elcotne advances, requests for sex*
ual hivors, and nfher verbal or physical conduct, whether overt or subtle, of a sexual
nature. But there is a great deal of disagreement about what spccificallv coiisanittS
sexual hara-ssiiienr. Org.mizatiuns have made consi.ierable progress in 'the past fe"’
years tms-ard Imuiing overt forms of sexual harassment, including imwantcd phw«‘
rmichmg. recurrmg reques-n lor dates after a clear refusal, and ihre.ats that refusing^
«xuai pniprismon wdl rc«. t in losing one’s job. The problems today are likely to sur-
face around the more subdc forms of sexual harassment-unwanted looks or C.MU-

ments; sexual ani^cxs, si,ch as mi. e calendars, in rhe work-plate- or misinterpretation

of where the kne tierween “be,ng fncndlv" ends in,l “k •« i
M<«.t studies confirm that rhe concept oft^ h^«mein ' begins.

hanssraent.‘’This seems tube true whether thrharassm'’^'^'^ ,

coworker, or even a sulmrdinaie. 1 he sa|R-n ,M,r‘m T"''" i

I" rx'Mir-employee dyad lH;st charactennS*^
 unequal P«e«- relationship, m which position power - L
ChdpUrll Powerpnlltiei
rcM^nJ and nxirre Supervisor,, give subordEs capacity
perinnna"'*- make rccoinine.nhaons for sabrv „|i.^ evaluate their
Jecide uhi'fltei an i-mploj-re retains his or her ioh Pnimotions. an.1 even
■xiwer. Becaiisc subordinates want favorable perform^ dcasi.ns give a su,Knisor
I'
rhe like, It* clnir that supmwm lonrrol rUon.ees “'ary increases, and •V
important and scarce. Its also worth notin? thit inU- "‘“’^^^"'^ordinaKs consider *
***.
„.|«s (inanagv.iK-in i»osirions, for Sample) sonieiimpThr ’' v” h.gh-status r^:
subor<linare.« is merely an extension of their ri?hi ro nvl. 7 harassing
in<fividual*i- Because of power ineouitics sexual h,r^ demands on lower-status
Sclty tor .he person being ha^sscrl^TX;
,,,nl agains. another’s. Are there odim this Inss has ham^efoX " " "P;
fonrard? Be.aiise of the supervisor’s control over ixisout.^ many who ’
to ‘ rtur oi reuJiation Iry- the supemsor
arv art*
C<>workers don’t have pcisfoon power, but tl.ey can have influence and use it to
,„uallv hat ass peers. In fact, although co-worke. s appear to engage in .somewhat less
severe fonnj, of haiassniefic chan do supervisors, vo-workei-s are the most freuiKiit
perpetrators of sexual hanissment in organizerions. How do coworkers exercise
power? Most often it’s by providing or snthholding informarinn, ccHipcradon, and
sapjwn. For example, die cffectivx j>crfonnaiu’e of most jiilw requires inccrachon and
support from co-workers, especially nowadays, as work increasingly is assigned co
teams. By threatening to wnihhold or delay [Konding infbrrnauon that’s ncce?>sar> lor
the succcWiil iu hitfvement of your work goals, co-\\ork’ers ran e xert power over you.
Hanissmcnt hy subordinates doesn’t get nearly the ;ittention that harassment by
a supervisor docs, but it ilocs wcur. Persons in positions of power can be subjected to
sexual harassment from [lersons in less powerful positions within rhe organiMOon.
Usually die .suljordinate will dcv^alue the superior through highlighting traditional
gender sterconpes char reflect negatively on die person in power (such as helplessness
orpassivin* if the victim is a wonwti; impotence or timidity if a man). Why would a
sufHirdinate eattage in such practices? lb gain some power over the higher-ranking
person or to minimize pow’cr differentials.
1 he topic of sexual harassment is about (tower. It’s about one indhidual^ wn-

trolling or threaieiiing anofoer. It’s wrong. It’s illegal. But you can .iiukrstand bow

«tual harassment surfaces in organizations if you analyze it in terms oi power.

POLITICS: POWER IN ACTION

'^htn people get together, power will be e-xertefl. People '^‘’"’1^*’.^^“^'^ ^When
from which utexen intluc^Ke. earn rewards, and advance
employees in org.mi/.atioiis convert their (xjwer iino a>--nnn, batts^f (Mwer
Those with good political skills have the ability to use thc.r bases (xiwe

effectively.

A Definition of Politkal Behavior , Essentiallv.

pierc have been no shortages of dcHnitions iingi" tbeorgan-
they have fiKused on the use of p>we organiMOonalty non-
‘‘T^non or on behaviors hy members that ,n yrganizJiion-s as ttor
****»«ed.’ hot our purposes, »c define pohticaf
 ’'' •'••V '
MM
11
“^^’T^definiQtw ciMXtnpasses A el«TOcnii of U most people ii^
„ik about orpm«o<.Ml pobm.- PoIuK-il belw.-.or u ones ip«^ j
requirements. The behanor require, some attempt to U« /«rer b«e^ O* det
nidon erKompasKS eff.wu to influent the goais, enrem or used for duii.,

makme when w« «ate dial politics is cuncctncd with the ai^nbuooii of adv-am^p,

and disadvantages widiin the organizaticm. ()ar definidon is broad enough m ind,^
such varied political behji iors as wirfihoUing ke> iaformaatm from denswn makrre,
whtsde-blou'ing. filing of gries-ances. qjreaibng ran. .rs, leaking ainfideniial inform
uon about organizarional acnxiocs to the media, eichanging favors uith others m
o^raniranon fi.r mutual benefit, or k>bb)ing for tw against a paiucubr indisTdittl „
decidon.

The Importance of a Political Perspetlive

'Ibosc who fail to actiow ledge political behavior ignore the reality that organization
arc political nTOms. It would be nice if all o^anizadons or formal groups vidcB
mpinixanons could be described as supportive, harmonious, trusting. c\>ll^ioramt
or rooperarive. A nonpolidca] perspective can lead one to believe that empkn-ecs w®
ahra)^ behave in w consisrenr «*ith the interests of the oiyanization. In onntnsu a
political new can explain much of whar may seem to be irrarional (behavior in otgaar-
zations. It can help to explain, for in«;tan<x. why emplcn’ces w iihh<j!d inforaatioo.
rcMrict output, anciupt to "build empires? publicize tbeir successes, hide their W-
tires, distort performance figures to make diemseh'es look better, and engage in dmi*
hr activities that appear to be at odds with rhe organizadons desire for effetmeneg

and cfBdencs'.

Factors Contributing to Political Behavior

RecetiT research and obun anon have identified a number of factors due appctf to be
associated vith pkHtical bchanor. Some are individual characteristics, derived fc®
the unique qualities of the people whom the organization empio\*s; othas are a resub
of the organs oon*s culture or internal cnvirunmenL

Individual Factors Researchers ha*c idenulieii rgrtajp personalit}' charactcnsocs.

neeik, and other indiridual factors that are likelv to he related to pnlidcal heharior.
Fmplovres who arc authoritarian, have a propensity for high risk, or possess an citer-
ual locus of control (believe that forces outside thefnseh*es cuntrol their dc^liny)
poliucally with less regard for the consequences to the orgapjzad*^* A high ncAl for
power, autonomy, security, or starus is also a mai<M* contributor to an empjorre’s ten-
denes tt> engage in political behavior?

Organuatxmal Factors Political aeririn' is pnihabh* more a hineriun of the

zaiion’s culture than of indiridual dirtercoccs. Because <w>gmbahons ha»*
a large number of employees with the eharartcristics prcriou&h listed, set the
ence of polidcaJ behavior varies widely.
Although we acknowledge the role that indiridual differences can pbv in fo«sr-
ing politicking, the evidence more Htrcmgl)' supports that certain culture proa**
 Chapter 11 Pouer a nrl P< iht ia
politii's. Culrurcx characU'rized hy l„w trust role •
sy.tcnu, reward allo,an<«, »ty, unclear pcrff»rmaiwe
eng. prc:^surc> for performs,K% and se1^scmii» ’ ucv.sion niak-
KKraric decision niak-
rtj>iX)minitics tbr puli tic JI avdvjties to lie nurtured 'iiaiwgcrs will vreatc
behjvior. SH high trust should suppress th; level of palJkal hX
Role ambiguity -ne.ns that ti,c prescribed beh^X^! ’ fI'''"'- ,
cle^t. There ;iie few limits, tbcrvloic, to the scooc in.) P • are not
poltoal aetions. Since poliuc:,! at-cinties are deUncd'as thos^^TT " «"iplt>yee's
Hrmal role, the greater du- role ambiguity the m 'c on
^erivity Hith little chmne of its hemg visible ""
Pertbriniiiice evaluadun is fer from a perfected science. Tlu- more that or-nizA-
non-s ...SV siib)et'tive enter.a .n the appraisal, emphasize a single outcome measure or
sllow sigilihcant time to pass henveeii an aciiun nnd its appraisal, the greater the like
lihood an employee can get away with politicking. Suh]ectivc performance criteria
create .imhiguity. The lue ol a single outcome measure encourages individuals to do
whatever is nreessary to look good on that measure, but often at the expense of per-
fbrniing well on other iinportam part.s of the iob that are not being appraised. The
amount of time that cia|vses heiwecii an action and its appraisal is .also a relevant fac-
tor. The longer the time, the more unlikely it is ±at the etnplovee will be belli
acc(>unti»Hle for political behaviors.
rhe more an organizacion’s culrure emphasizes ilir zero-sum or win-losc
3[^Ji\meh to reward alloeauoiis, die more employees will be motivated to engage in
|x>liliiking. rhe zero-swn approach treats the reward '*pic'’ as fixed so that any gain
one person or group achieves has co come at the expense of another person or group.
11 1 win, you niu.sl lose! If 520,000 in annual raises is to be distrihiiTcd among five
empiovees, then any empkn ee who gets tn ore ihan $4,000 takes money away from
one or more of the others. Such a practice encourages making cthei’S look bad and
increasing the nsibility of what you do.
For several decades now, there has been a general move in Norih America
toward making organizations less autocratic. Managers are being asked to behave
niore dem (jcra lie ally. Thcyhe told they' should alkm subordiniues to advise them on
decisions and ihev should rdv to a greater extent on group input into the dedsion
process. Such moves toward democracy, however, are not necessarily embraced by a
individual managers. Many managers sought their positions in order to have legm-
mate jKwer tu make unilateral decisions. They fought hard and often paid high per-
sonal costs lu achieve their influeni ral positions. Sharing their power with others rubs
directly against their desires. The result is that managers may use the required teanv,
eomniirtecs, conferencc.s, and group meetings in a superficial way as arenas
maneuvering and inanipiilaiina. „ . lu.j,. rE..v-ire
rhe inure pressure that einploy'ces teel to perform wcl, l morL '
m engage in pidiiicking. Holding people strictly accountable or t^eer
pressure on them to ‘‘look gooil’* A person who perceive.s tliar is —oorr will
riding on new quarter's sales figures or next months plant prn< “
highly mottvat^ to do whareXr is necessary to mate sure the numbers come
Finally, when employees see the people on mp i^created
«P«««y when they do 2 succes-sfuUy and are rewarded Ibr it. a chma
Gro«p» In the Oganizibon
, - -.jiUrlcTftff Pfilirickinc h>* top mtfttgemcnt. in a sense, gives peniila||tf
*’S-kX?in .he nrB.niz.non K, pby polinc b, implying rh.. .nd, hch^

acccpraWc.

Impression Mnnagement
We that iKopk have an ...igoing interest in how others perceive and
thetn For exampk- North Americans spend billions of dollars on diets, health duh
memlierships. c.smetioi, and phisric surgery—all intended to make them more attrac-
tive to others Being perceived |«.sitively by others should haw benehts for people in
orgaiiizittions h migl.i, for instance, help them initially to get the jobs they u-ant in
oi-ganizanon and. once lured, to get favorable evaluations, supennr salary increasw,
and more rapitl promotions. In a political contcvi. it might help sway the distribution
of advanuges jn their fevor
The pnjcess by which individuals attempt to control the impression ochen
form of them is called impression management." In this section wc review
impression niaiipgeincnt (LM) techniques and aux-rtain whether they actually work
in organiiations.

Techniques Afost of the attention given to LVl lecliniques has centered on seven
verbal self-pres ent a lion behaviors that individuals use to manipulate inform a dun
abourrhemselves?’ Let’s briefly define them and give an example of each.

Statements made by a person that destrilK* personal charactens-

tics such as traits, abilities, feelings, opinions and personal lives, jkn example:
Job applicant to interviewer, *4 got my Harvard M.B.A. even chough 1 suffer
from dyslexia.”
Confarmity. Agreeing widi someone else’s opinion m order to gain his or her
approval. An example: Manager to boss. ‘^You’re absolutely right on your reor-
ganizadon plan for the wesrern regional office. I couldn’t agree you more.”
ACCCHM'. FA coses, justifications, or other explanations of a preilienncm-creating
event aimed at minimizing rhe apparent severity of the predicament. An exam-
ple: Sales manager to Ixiss, “Wc failed to get the ad in the paper on rime hut no
one responds to those ads anytvay.”
Afifkgicr. Admirring responsibility for an undesirable ex’ent and simultaneously
seeking to gci a pardon for the action. An example: Employee to boss, “I’m sorry
1 made a mistake on the re(x>rr. Plexse forgive me.”
Acclaiming'. Explanation of favorable events by someone in order to maxinuze
the desirable implications for that person. .\n example: Salesperson co peer,
“The sales in our division have nearly tripled SIIKC I was hired,”
I’httery. C-omplimcruing others about their virtues in an effon co make oneself
appear perceptive and likable. .An example: XCM’ sales tminee to peer. ”You han-
dled that client^ complaint so tactfullv! I could never have handled that as well
as you did.”
tavarr Doing something nice for someone to gain that person’s appn>val. An
exajnpic: Salcs|)erson to prospective client, “Ew got two uckett to the theater
or tonight that I can’t use. lake them. Consider it a rhank-vou for taking the
nine toulk with me. ’

*n mind lhat nothing in IM implies that the iinpressiims peottle cinvey tst
CMan y hlse (although, of course, they sometimes are). You can. h>r instance^
 QwpUill P©w«r««dpo6iia
fieheve tliwt ads contribute link to ,a|„ ,
"' 'he fripbng ot y..iir diviMoi.^ sales R ''?'™’®’‘h«ynu«»thekey
utsi- If the image dain.ed is false. vo„ „uv be dk can have a
i^Voften, no .me . liU-ly to belietx yon J.d U ’
^-jutiou' not to he petxeiv«l as insiiH-erc ,,r nijnipulub ’ So one must he
Arc individuals moix hbdy to niisrcpri sent them 'l
some situati.Mis lhan ■» others? Yes. Highiv uncertain oM.'X"^ " “»
^-lauveb i.rtk .nt..n.u,o,m (or challenging a fraudulent
tnisrcprcseniarifin. reduce rhe

Effecth eness <^n>y « hmited mimher of studies have j.

eftatirtitess of LM iechm«|ues. and these have l>ecn cssenualk-
tthedier or n.it I.M bebat lur is rcfatc.l to job intcrvacv s. t- ' T’
„e»s ntaU- a pamt olarly relevant are,, of s-mdy s.nc. aiTtlie^.^are Sl^aSinp'ng
ptvsent posinve .mages of themselves and there are relatively ohjeefrT^ Xme
(untren assessments ^d typically a hfre-don't hire reenmnindabX
rhe cadences iliar I.M behanor ut.rks,'> In one study, for ...stance, intenaew-
ers felt that the .ipplicanu lor a position as a customer-service representative who usetl
{M rrtJiniqucs pe. harmed better m die interview d.an tht.se who didn’t use LM and
they seemed somwhai more inclined to hire these people.'* Moreover, the researchers
nuttidered apphrancs’ tTc.icnt.als and concluded it u.r. the IM techniques alone that
influenced the inter, wwers. That is. it didn't seem tn matter if ajuflicants were well
or poorly qualified. II they used IM techniques, diey did better in the interview.
Of course, it could be argued that since the |ob for which applicants were being
ninsidcred—customer-service representative—was a public contact position, self-
presentation may be a job-rcievanr skill and more imponaut rhan qualifications such as
college or university major, grades, or prior work experience. Nevertheless, LM tech-
nique* u» work in intvniews.

The Ethics of Behaving Politically

We condude our discuss inn ul politics by pn.>' ijing soni€ eibical guidelines fr>r polit-
ical hchavinr. Wliile tlivrc arc no clear-cut wavs to diftereiniate ethical from unethical
*
politicking, there are some questions you should consider? *'
Exhihrt 11-2 illustrates a detnsion tree to guide ethical actions. The first ques-
Oiw you need to answer addresses self-interest versus organizabonal goals- Ethical
actions are consisteni with the organization s goals. Spreading untrue rumors about
At safeu’ of a new product introduced hv your company, in order to make that ptt^-
desiim group look had, is unethicalHowever, there may be nothing it
a 4epanment head exchanges frvors with her division s purdwsmg manager m orfler

a critical contract pnxvssed quickly. n L i ,v>rtmHU

llic «cond quesaon c<,ncxn« the right, of other F*

‘**1 dneribed in the previous |aragraph wei.i to the matirexin.
though the Ln direkedm the purchasing h the -nt of
«meth.ng on hhn" so he would expedite a
h She would have violated the purchasing manager g whether the political
iw final questio.. that needs to
«»faeTltt to mndards of equity and |U' nd deflates the evaluation of a
n aluauon of a favored employee and deflate.
 44

9;
i GrowM in tbc Orpotimion

EXHIBIT 11-2 b a PoHtkal Action EthkaP

rTT..^ ______________________________

{ Quwtfeo 9
Unethical ) II.
' Is the political
I action Is the polrtkal 1^^
motivated activity fair vxl
f by self'serving Question 2 equicable’
interests to 3t>l Does Che politick
exclusion of the action respect the
organization^ rights of the
i goaJs? individuals

7
affected?

I
i
I
AdBved im* G.F cjiaAigr. ua^ohtie, i^nd jhe ui Orpinuaifcnal Poi>ecs;
w v>i3sqL
IJewe*. Jolv 19« t ft. 3M. ftesihrw by pw
niww

disfavored employee—then uses these evalvatiuns to justify giving the fnrmer a big
raise and nothing to the latter - has treated die disfavored employee unfairly.
Lnfortunarelv. the answers to tlic questions in Exliibit 11-2 are often argued io
ways to make uneilneal practices seem ethical. Powerful people, for example, ran
Income very good at cxpluining self-serving behaviors in tenns of the orgiinizatj<tn’5
l>e.st interests. .Similarly, they can persua.sively argue chat unfair actions are really lair
and equitable. Our point is that immoral people can juscily almost any behavic»r.
Those who arc iMiwcrful, articulate, and persuasive arc most vulnerable because they
arc likely’to be able to gei away with unethical practices successhilly. UTiea faced wiih
an ethical dilemma regarding organizarionot polilics, try to answer the questions in
Exhibit 11-2 truthfully. And, if you have a strong pow’er base, recognize the ability of
jxiwer to con-upt. Remember, it’s a lot easier for the powerless to act ethicnlly, fir no
oihrr reason ihau that they nqiically have vcr\ linlc political discretion to exploit.

IMPLICATIONS FOR MANAGERS

If you want to get things done in a group or organization, it helps tn have

power. As a manager who wan is to maximize your power, you will want co
increase other*.* dependence on you. You can. for instance, increase your power in
relation to your boss bt' developing knot*ledge or a skill thai he needs and for
which he perceives no ready suhstiiiite. But power is a two-way street. You will
not be alone in attempting to build your power bases. Others, particularly
employees and peers, will be seeking co ftiake you dependent on them. The result
is a continual battle. WTule you seek to uiaxiini/zr others’ dependence on you. v'ou
will be seeking to minimize yoirr dependence on others. And. of course, others
you work with ^4 ill be trying to do rhe iame.
The effective manager accepts the political nature of organizations- B)'
assessing Iwhanor in a political framework. \’ou can better predict the actions
o^ers and use this infonmnon to formulate political straicRics that will g*®
ad\*anrages for you and your work unit.
 Conflict
and Negotiation
Afier reading this chapter, you shouid be able to

1. Define conflict
2. Differentiate between the tradibona). human relations, and inifiranionist views of
conflict

}» Contrast functional and dystunctioral corfikt

4s Outline the conflict process

S. Describe the five conflict-hdndhng orientations

$• Contrast distributive and integrative bargaining

1 Identify decision biases that hinder effetthre negotiaten

*. Explain ways for individuals to irnprovc their negotiating skills

ts iHjvn said that conflict is a tbi^inc that has occupied iwnians more iha any
e

I oihcr—with the exeepiion of (iod and love. But what dii wc mean by the
emiflifi:
tenii

A DEFINITION OF CONFLICT
While there has been no shuriage nJ ‘'‘-’f'"’Whether
unikrUc hirst, confliu inus f n is
ennflirt CHSts is a perception iwue- ^^veiveJ ituv not be real.and. ex»n-
•grwd that w* crmflict exists, enursv. co jeserihed as eonflii

hetauae the group nieinlie.s. ino.lvet! do and

ddwnaufts <>t umflki include the c<>ncc|
CreBp5ind«Org>»i“’**’
a«u,n„rion there arc wn or more parties whose intcresw «.r Roals a,^ar togl
Re«.urccs-.noncy, juh., prrsnfft. and p-.wer for
Seed and rheir sc-arcity entourages bhx-ku.g behasnur. The paioes are therefe^ :
.n opp«K?«r«.- W'hc une parn- birx.-U ihe nean. ro a goal ol ano,her, a .,ate ofeo^
'oSerentes Iwwccn definitions tend to tenter aronnd iniem and tehether eon.
flict is a term Jiniite.l only tn acts. The intent issue is a debaie over wh«h„
blockage behavior itr.ist be a deiennined actum or whether it euuld occur as a resu|, of
fomiitnuscireuoisiante.. A-s tn whether cofifiict can refer only to oven acts, some def-
initions, for ctampk. require signs ol nianikst fighting or oixni stn.ggk as criteria fw
the existence of conflict.
Oar definition of conflict aekiiowkdges awareness {perceptiun), nppofritH„|^
scarcir)’. And Wnckjgv. Furrher. we assume it co be a dcteniiincd actinn, which tan
exist at either the brcni or overt level. We define conflict as a process in which an
effort is purposely made by A co offset the eftbrts of B by some form of blocking
diat will rcsuic in frustrating’ B in attaining his or her goals or furrbering his or her
inttrescs.

TRANSITIONS IN CONFLICT THOUGHT

IT is entirely appropriate tn say that there has been conflict over the role of conflicc in
groups anti nrgannations. One school of iboughr has argued that conflict must be
avuided, that it iiKlicaces a malfunction wiuliiji the group. We call this die
Another school of riiougln, rhe hufrrav n'lations weu’, argues that conflict is a nat-
ural and inct iDhlc outcome in any gniup. It need not be evil, but rather has the poteii*
rial to be a positive Inrce in deienniiiing gT<»up perfonnancc. The third, and most
recent, perspective proposes nut only that cun flier can be a positive force in a gnwp,
but CAj)li<-itly argues that some conflict is /iMntefy for a group lo perfonu
effectively. We label ibis third school the intrractitmisr virdK Let’s take a closer lout at
cadi of these view s.

The Traditional View

rhe early apjiroach to conflict assumed that conflict wa-s bad. Conflict was viewed
negatively, and it wnv used synonymously with terms such as vioJew. ikstr/tetiftn, and
hyoTfonffihy in order tn reinlorce its negative connotndon. Conflict, then, was to 1H‘
avoided.
1 he traditional view wa»i consistent with the attitudes that prevailed alniur
group hehavior in the 1930. and 19-|Gs. From findings provided bv studies such
diose done at Ihwdiome, it was argued that conflict M’as a dysfunctional outcome
resultuig from poor commiinicaLion, a hek of openness and trust heiuecn people,
and the failure of managers to he rcs|ymsivc co die needs and aspirations of their
employees.
pc view that all conflict is had ccminly offers a simple approach tolookinsf«
the behavior of people who create conflict, .Since aU conflict is to be avoided, we lU-ed
merely dircvt .wr attention to the cause.s ofcontlla and correct these ,nalfitncti..mnr
in order n. improve group and orgamzari.,.,;,] j^rformance. .Mihough studies no*
 r

Chapter 12
provide’‘O'ong evidence tn dispute that this aDnr.«..-k .. ..
high group perfcirnwhce. most of us still «
outmoded standard. situanons on the haws of iHis

The Human Kelarioiis View

The human rclarions position argued that conflict wac a nor.,..,i

and organizations. Since conflict was inevitable fh? h 'Kciincnce tn all groups
of cont],«. l-hey *’’?«-
even rimes when conflict may benefit a
nev JoT.unatcd conflict theory from tite ktc 190. thiough the mid-19-Os.

The Interne tik>nist View

The current v.ew toward conflict ,s the interacrionisi perspective. Whereas the
human rebiums ajyt.ach i»rrep/c^ conflict, the inretacdodst approach em,ge, con-
flict on the grounds that a hamionious, peaceful, tranquil, and cooperative Joup is
likel)' to become staQc, apatheuc, and nonresponsive to needs for change and innova-
tion. The major concribuoon of the intcractionist approach, thcrcfoi-e, is encouraging
group leaders to maintain an ongoing minimal level of conflict—enough to keep the
group alive, self-critical, and creative.
Ciiven rhe tnreracrinnisi view, which is rhe one we hjkc in this chapter, it
btjconw evident diac TO say that conflict is ill good or all bad is innppropriace and
naive. Wliether a conflict is good or bad depends on the type of conflict Specifically,
ids necessay co differentiate bciweeii functional and dv^funcdonal conflicts.

DIFFERENTIATING FUNCTIONAL FROM

DYSFUNCTIONAL CONFLICTS
rhe intcrattionisT view does not propose that /?// conflicts are good. Rather, some cuo-
flicK Support the tfoals of the group and improve its perl nrmance: these are functions],
consCTUCUvt forms of conllici. 'There are also conflicts that hinder group perfor-
majice: these are d vs function a I or destructive forms.
What differentiates functional from dysfnnctioiial conflict? 'l he evidence indi-
cates that vou need to look at the type of conflict.^ Spccificall); there are three tyi>es:

cask, relationship, and process. .

Task conflict relates to the content and goals of the work. Relationship con ct
focuses on interpersonal relationships. Process conflict ichces tn how the work ge<^
done. Studies tkmonsTratc diat relationsliip cunflicts are almost always dys uncti
'\’h5' It appears that the friction and imcnjersonal hostilities inherent in 1
■XKiflicts incTease personality clashes and decrease mutual unt erst^‘ ng*
dering the completion of <)nrani2ational tasks. On rhe other ham, conflict
omfiKt and low-to-modera^e levels of task conflict are ftmcnonal. For pi-
- b. i, Kep, Intense
‘*<-'»ne djTifuncrional when they create uncertainty’ about usk roks^ . „-fno.k’rate
1
tymplew tasks, and lead to members working <rroup perfonnance

•^elof Q4 conflict conststenriy demonstrates a fMisintc ‘

l^tausc it stimulates discussiiMi of ideas that help oop'
Gmu)H iu rhe OrpanizaUnn
't ♦ • *nv*-«* ♦
C:ONFUCT

r
T
f
rtlE
progressing through four stages; potentiaj
PROCESS , i>e!u'.n<ir. and outcomes. The process j.

The conflict process tan be chough r of a$

cogniUon and perMjnafizuiiori
di'agrainEied in Exlirba 12-/.
Stage I: Potential Opposition
The first strp in the conflict process is the presence of conditions that create oppoco,.
nhics for conflict to arise. They n,^dnoT SOMI directly to conflict, but one of these
diuons is necessary if ex inflict is to arise. For strnpiiciry^s sake, these con di nuns
dsn niay be lookwi at as causes ur sources <if conflict) have been condensed inu> tlxrc«
general categories: cnnimunicatinn, scrucnire, and iKisunal variables.^

Conununicadan 'fhe communicative source represents opposing forces that arise

from semantic difficulric5> tn i sunders tan dings, and “noise” in the communication
channels. Much of this discussion can be related to our comments on comm uni cation
and cominunicadon networks in Chapter 9.
One of rhe major inisconceptions that most of us carry around with us is that
poor ronuiiunication is the reason for conflicts. Such a conclusion is not unreason-
able. given the amount of time each of us spends communicating. But, of Cour:5e,poyr
communication is certainly not the source of all conflicts, tliough there is considerable
evidence to suggest dial problems in the communication process act to rcurd collab-
oration and stimulate misunderstanding.

EXHIBIT 12-1 The Conflict Process

Stage I -> Stage II Stage HI . Suge 4V

Potential opposition Cognition and Behavior Outcomes
personalization
----------------
Increased
Perceive group
-------\ d performance >
Antecedeni conditions ____ y
* Communication conflic
t Overt
* Structure
* Fftrsonai variables conflict
Felt — ....... \

I
conftci Oecrease
d
Confiict-bandfing group
behaviors ^performance
* Competition
* CclUborauon
* Accommodation
* Avoidance
t • Compromlu
 A review of rhe research sug^sR that sem • ^P»w 12 cwl Negoriscion
ofinfonnation, ‘’’sufficientexchange
^.jtion and arc pmennal antccedeni cndiiim,., J^'"’’fovrs co comn.uni-
JenKHistrarcs dial semantic ditficnloes arise as a res.,l?‘i". Uy, evidence
Ort pvn-eption, and inadequate iiifomiatio,, .h,..,. u cniining.xjlec-
a surprising finding: The ix.untid f„,. has Further
pjo firtie or too much a.miinmicanon takes place An i ’^creases when either
nicariiMi is functional up to a p,int. whereupon it '’/'"J"'"’''''''
puking in an .neieasc-m rhe potential for conflict Too',nt,ch
JOO little can lay the foundation for conflict. Further tl.P rh as well as
Sung cn h;ive an .nflne.K, „n a.i™,™., »™“-
„OT,s »> informatinn ,s passed bem-een mmibeiTnd rhe dbcTCMc"’'?

Struewre ITic tern, sm.etun used, m tins eontev. to include variables such as
size; degree oi rouniuzation, spcc.ahzauon, and standardization in iJ,e task assigned
K, group .nenibers. heterogeneity of the group; leadership steles; reward systciiLs^nd
ihe degree of dependence between groups. Research indicates that size and specialisa-
tion act as forces to stuinilore conflict. The larger the group and rhe more specialized
its acQvitics, the greater the likelihood of conflict. Tenure and conflict hnve been
found to be inversely related. The potential for conflict tends tci be greatest when
group members are younger and when turnover is high.

There is .some indication that a dose style of leadership, th-it is, tight and
continuous observation with restrictive control of the others’ behaviors, ina-cascs
the porenthi for conflict, but the evidence is noi strong. Too much reliance on
participation may also stimulate eon flier. Research tends to confirm that partic-
ipation and conflict are highly correlated, apparently because participation encour-
ages the promotion of differences. Reward systems, too, are found to create con-
flict w’hen one niember's gain is at another’s expense, Finally, if a group is
dependent on another group (ill contrast to the two being mutually independent)
or if interdependence allows one group to gain ai another’s expense, opposing
lorces arc siiinulated.

Personal Variables The most important personal variables are individual value sv-^-
lems and individual idiosyncrasies and differences. The eviilencc indkaies thar certain
r*r«jnalit\' n-pes—for example, individuals who are highly aurhontaiian, do^mane,
^nd who demonstrate low self-esteem—lead to poTcinial conflict. Most important,
“id prohablv the most overlooked variable in die study of social conflict, is rhe notion
'■f differing rafoe sv.Mems. That is. people differ in the imporrance .hey give to va
freedom, pleasure, hard work, setf-respeu, honesty, ohed.eiice. and eqn •
differences, for example, arc the host evplannuon of such diverse
disagreements over one’s contnburion to the ^oup .md cherawa^ds^c
- assessments of whether this particular book -
Hn dislikes blacks and Dana thinks him to be worth
thinks he is worth $-U),00fl a year bu - Jennifer views ii AS “a
■♦.OlM), and that Ann thinks this l>ook is interesting iniponant in cre-

rtu piMvutid lur conflict

 hrtn
Stage n; Cognition and PcrsonaliMtion
I, the omdiBoivs ciu-d in .Staye I )rusr«».n. then the potvnnal for opp.«6.^
h the nmdia antcwJvnt condinons can lead to ct>nfli»

• ?, "x’Xted in «.ur definition of conflict. perceplH.n.s required 1 heretore,

or ...ore of .he .«n.cs m»( be o« n.x of the exwicncc ot the anieee.lcnt co.,d,ti..ni
Ilouever heeause conflkf is iKMxeivc.l docs not mean it is per^nil./cd, \«nimaybe
w.re that von and n co-worker are in disapeen.ent. But the disagreement may
„,,ke v>u tense or n.wou.s and it may not influence your affection toward this m-
worker II is at the level whore wmflivt is fell, when individuals htconie em!«i(,o,l|y
involved that iwftios exiieneuce anxiety, tension, fntsir.iuoii, or ho,ulu>.

< Stage III: Behavior

* The third stage of the cunflict process occurs when □ member engages in action that
.*
* * fnIStrates the attainment of another’s goals or prevents the furthering of the otbert
• interests. This action muse be mtemled; that is. there must be a known effon to frus-
trate another. AT rtiis juncture, the conflict is OUT in the open.
Overt uKiflict ctners a full range of behaviors, from subtle, indirect, and highk
conrtolled ft^rms of inrerfcrence ri> direcr, aggressive, violent, and uncontrolled strug-
gle. Al the low range, this ox en Ixhavior is illustnied by the stiidenr who raises his or
her hand in class and questions a point the instructor has made. At the high range,
strikes, riots, and wars come to mind.
Stage HI is also where most conflict-handling behaviors are initiated. Once dw
conflict is oven, the parties will develop a method for dealing with it. Conflict*
handling behaviors might lx* initiated in stage IT, Init, in most cases, techniques for
reducing frustration are used not as preventive measures but only when the conflict
has become observable. Five conflict-handling approaches are HTJicallv available:
n>mpetition. collaboration, avoidance, acconiTnudation, and compromise.*^

Competicioa VX'hcn enjc part) seeks to achieve certain goals or to further penond
interests, regardless of the impact on the parties to the conflict, he or she competes
and dominates. 1 hese win-losc struggles, in formal groups or in an organization, frtf-
qtiently utilize Ac fonnal auAont)* ol a mutual superior as Ae dominant frirce. and
each of Ae amflicting parties will use his or her own power base in order to resohta
Victor)’ m his or her favor.

CoUahoratJcm Wljcn each of Ac parties m conflict desires to saAfr frdlv Ac co***

cent (»f all parties, we have C(.x)|»erauon and Ac search for a mutually beneficial (>«<•
come. A colhboradon, the behavior of Ac parties is aimed at solnng the pnihkm and
at clanfr mg Ae diflerences ratlier than accoinimMating various phnts of view The
particqunts consider Ae full rangi.* of alcemahves, Ac similarides and differences in
vivw^nnts nine mure dearly hx'used, and Ae causes or differenc'es liceortie
wanlJy evident. Because Ac solution sought is advantageous to alt parties, collabon-
m IS o win-win approach co resolnng conflieix. It is, for exaini’k’
^n^quendy hy marriage cuumelonu Behari.xal sciennsts who value opdi'
^.^2^ m trlationAips, are also strong advix’ato of a colbhi<^“
ovc approach to resuinng conflicts
 .. D •c Chapter 12 Coaflict md NemUUon
Abidance Reeogniaing that a conflict exists »
from or suppressing ir. I.idift'crenct <.r the desire withdrawing
Jisagreenicin can result in withdrawal The iwm 7****” dentonstratiw of a
an,1 ca.E sates out a rerntory disontt from the <.ihIX «iwration.
Jrtinible. rhe parries may suppress, 6ai is wiihhol.i',h *
p,emlK.-n are rcpiircd m imcract because- of the interdcil^nH
pression u. a more probable ouicntne than withdrawal “P-

At<»miiiodanon When the parries .sect ui auneasr th..ir ___________________

willing to place their opponents’ interests above their «w.n
rehdonsb.p, one pacn- is willing to be self-sacrifinng 7ve Tcfert rh’Tr'”
acoHnniodatioii. UTten h.isbaiids and wives haw diffm.ices it ,s nut un
orte to acxom.nodare die other by placing a sp.use’s interest above one’s n™"
Compwinisc When each parn- to the conflict musr give up so.nething sharing
«x-ur^ rcs-tdnnp in a compromised outcome. In compronusing, there is itn clearwu;
net or loser. Rather, there is a rationing ,4 the ob,«i of the conflict or, where the
object 15 nut dniMble. one rewards the other by nel.ling something of substitute value
•nie disuiguishutg characteristic of compromise, therefore, is the requirement that
each part)-give up something. In negonadoiis lietween onions and management, com-
promise is required in order to rc u h a sctrlemc-iit and agree on a labor contract.

The Impact of Naticmal Culture on Cunflici Behavior Your approach tn han-

tiling c’ohflict will, to soiiie dcgr<x. be inttuvnccd by pnir cultural roou. Amencans,
for cxawple, have- a repotahon Iwingopen, direct, and conipctiiive. 1’hese ckawv-
tcristics arc exmsisrent whii a society marked by relatively low uncenaiiny avoidance
and high quantity-of-life rankings.
i\s w€ discovered in Chapter 2, people in countries low in uncertainh’ avoidance
feel secure and relatively free from threats of uncerrainry. Their organiz^ilions, there-
lore, rend to be rather open and fledble. (Countries ranked high in quantity ol life
emphasize assertiveness, 'I he cultural climate of low uncertainty avciidiinrc and high
quantity uf life tends to shape a society that is open, direct, and competitive. It would
also tend to create individuals who tavur conflict-handling behaviors such as competi-
tion and cullaborarion.
J his prertiise suggests that uncertainn* avoidance and quantiTyA}ualjiy-of-Lle
rankings would be fairly good predictors of which conflict styles are preferred in dif-
ferent countries. Il suggests, for instance, that when one E in a Scandinavian coun-
try—which tends t<i rate high on qualin' of lite—avoidance i»r accommodauou^ a'
iofs should be emphasized. The same r^eoiuinendarinn would ap|)ly in Japan, Greece,
or other countries that rare high on uncertainty' avoidance, because t e extensive t^e
of formal rules and employment guarantees tends to niiiumixe con icts an encourag
cnuperatHin.

Stage B'; OutcomeK

*K- .nurpbv be^een the ..vert conflict behavior
in consequences. -Ks Ethibn J2-1 de.nons^i«. Cwiversely.
*«: conflut has resulted in an iinprovemeni in t c dv^ftmetionai.
perfonnante ntav t« hindered and the o.ncome dicn HUUM
Fertril

group goals and acrivitics, and increases the probability that the group will respond

to change.

For an example of a company that hxs suffered because it had too Btde func-
tional conflicts you don’t have co look lurcher than automobile behemoth General
Motors.^ Manv of GM’s problems over the past three decades can he traced to a lack
of functional conflict. Il hired and promoted individuals who were ‘‘yes men,” loyal to
GM to the pt)int of never questioning company actions. Managers were, lor the mosi
part, conservative white Anglo-Saxon males raised in the inidwestern Vnited States
who resisted change—they j)referrcd looking back to j>ast successes rather than for-
ward to new’ challenges. They w ere almost sanctunonious in their belief that what had
worked in the past would cxintinue to work in the future. iVIoreover, by sheltering
executives in the company’s Detroit offices and encouraging them to soaalize with
others inside the GM ranks, the company further insulated managers from conflicting
perspectives.
Research studies in diverse settings cnnfii-m the functionality of conflict.
Consider the following findings. A comparison of six major decisions during die
administrations of four L.S. presidents found that conflict reiluced the chance that
group think would overpower policy decisions. 'I'he comparisons demonstrated that
conformity among presidential advisers was related ro poor decisions, while an an nos-
phere of constructive conflict and critical thinking surrounded the well-develnped
decisions.^
There is further evidence that conflict leads to better and more innnvad^'^
decisions, as well as increased group productivity. It was demonstrated that,
established groups, pcrfcjnnance tended to improve more when there was eonfli*^
among members than when there wui fairly close agreement. The invesngutor^
observed that when groups analyzed decisions that had been made by the indh’idu^
members of that group, the average improvement among the high-confiict gro^P^
was 73 percent greater than tJiat of those groups characterized by low-conllkt toft*
ditions. Other researchers have found similar rcsailts: Groups imposed of
bers uith different interests tend to produce higher-quabty solutions to a varien ot
problems than do homogencuns groups/ The preceding findings suggest that- ctxv
trary to the traditional view, conflict in the group might !>« an indication ol streng*
 I r* -T^ , Ch>|rt®r12 Confttrt an<l Nei<>oatj'm Th
C onflict The dcstruvtive von^
pcrfbmwncc ^’2^ generally ’_g««P -
«;,c: L oppmitnm hre«l» diicontent .'‘«nunary mipht
lead* to desirut tion of the group \nd d'«ttlve e.immon ries
l^y cf literature to document HOM- the dt sfunchon J ’ ’’'‘’»»nual
efletu veil ess. Ajnung the more undcsirahlr r> ” v<mflietcan reduce
Snuf'f'*"*”’’ 'n gi-oup ujhc-:ivencss and'^M'd’” ® of
H, thepn’oa'-?' ■>( tnfighnng among members. At the e.rtreme S^oop goals
fanctioning to a halt and potentially threaten the gro..p\ ^’niiggroup
Thedtmuco(anorganiuti.inasaresulioft,w,„.,.^k ti - .
i, gtieht fit'f ‘I’P*:" For instance, one of New York’s best knou'.Ua "
Cod,I d,«d .i„.„ d,. w .1„T? i" *
n.ns„lu„,. fin„bT w,d, ,he „,p„,z,d„„, -This w„ , fi™ rf,Jh.ri,”e
,„d pnnoplcd d.He™ an«.„g d,e p„mers ,h„ w„e l,.,i„ll) ir,„„„il.bk -
•n«, same consultant also addressed d.c partners at il.e.r las. meeting. ‘•Yen. don’t
have an ettmoinjc problem, he said. ’•You have » permoaliiy problem. You hate each
other!"

NEGOTIATION
NepotiKion permeates the interacnons of almost ex^enwe in groups and organiza-
rioflS. There’s the obvious: Laboi* bargains with fnanagemeiir There's the not-sii-
obnous: Managers negotiate with subordinates, peers, and bosses; s;ilespeople nego-
tiate with customers; purchasing agents negotiate with suppliers. And there’s the
subtle: A worker agrees to ans-wer 3 colleague's phone for a few ininuies in exchange
fcr some past or future benefit, in today s team-based organizations, where members
are increasingly finding thcntoelves having to work with colleagues over whom they
hav’e no direci authoritv' and with w’hom they may not even share a common boss,
negotiadun skills become cTidcal.
For our purposes, w'e define negotiation as a process in which two or more par-
ties exchange gocxls or services and attempt to agree on the exchange rate for them.
In addition, we use the terms negQfMFtQn and hat^aining interchangeably.

Bargaining Strategies
There are two general approaches to negouarion—<iismbtanT b/irgaifung and

Wrgrgrnr Wg<//«wgJ • These are compared in Fjchibit I

•>i«ributivc Bargaining You see a used car advertised for sale in the newspaper. It
il-P^rs f. IK- just what you’ve been looking for. You go out TO see the car. It’s_g«at^and
*’nt i,. The owner tells you the asking pnee. You denV wan. rn pay That much,
'■he two of vou ihcn neg.3riate over the price. The nego.iaang process yo
■"g in is called di.trihirive hargawing. Its most idenufying feature .s that «
^ro-sum u,nd.aons. Sat is, Iny gain I mak. .s at y.ur
«ed example, every dollar y.n. can get the seller to cut from
“ »tVJlar you ,avc. Converselv. even dollar more he can ge
So the essence <,f distributive bargaining « negoua.mg «ner who ge

**»o<afi«cdinc.
I
 nrtW Giwp* in the Orgiwiaiwn
EXHIBIT 12-2 Ofetributiwe versus Integratiw Bargaireng

Hi J cribuii><^ Bargainin Inuyi^vy Bafggwiftg

BurgflininS < IhinKteriMk
Fixed VarwiHv
AvaibUc *o«>uniol
rcsoitfrv*
I win; wu lose 1 wifi: you uifi t
tf> he divided
Pnmenr’ monvBtitnis O|>|nised to each Conveivent or congrueot
oihet wiih each other
PiiJimr^ I niece? cs
FCICU5 of rcfeiionships f. on
Shori le/ni g lenn
Amed trecn ft X iMM and X*. Wttrer. ••xJurhWio^ 1: Hfchard 0. Hinn. iSaS}. o- 280
Copyrthi ® RJ --------------------------- - ------ y
Imii*: ma J ft L-ttw. 1985. ftepr.WKJ nr peTiWion cl ftenert 0 ir<rie. Inc.

Probably rhe most widely cited example of distributive bargaining is in

kabur managenxenc negntiacinns over wages. Typically, labors representatives conic
to die baixainin^ table determined to get as much money a.s jKJssible out of nianage-
mcni. Even’ cent more that labor ne<(itiates increases managemenfs costs, so each
party bargains aggressively and treats die other as an opponent who must be
tic fc a led.
E.xhibit 12-3 depicts the disrrilAitive bargaining- stmtegy Panies A and B re^Kc-
sentthe two negoiiator.ft. Each has a Mrger /lowr that defines what he or she would like
to achieve. Each also has a mutana p^/nr, which marks the low’cst outcome that is
oeccptabic— rhe point below which they would break off negotiations rather tbaii
accept a less favorable settlement. Phe area herween their resistance points is the set-
tlement range. As long as there is some overlap io their aspirati<;n ranges, there easts
a settlement area where each one’s as pi rations can be met.
VMien engaged in distributive bargaining, one’s tactics focus oti (tying tn get
one’s oppment to agree to one’s specific target point or co get as dose to it as possible.
Examples of such tactics are persuading your opponent of die ini|xissihiiity of getting

EXHIBIT 12-3 Stoking Out the Bargaining Zone

< ftrtjr A*8 aspration ringe -

a

rarcy e s aspiration ran^e — • *

Senlonianc
range

Party A's Par^ B's Par^ A*i fergr Bi

Orftt resi$once r^BOnce
k point po(nc pom
I
 p, h/, her OttHUt «
^ing .h.t v.H,r wrge. is l.ir. while >, • .enU™ •^*‘***«
..|.r.r«"y«" w'-gei|’'>'"t- «.u and »»gWynur
.o . . '■'rpnng „„ yu,^„^
IflfeMWO'v UjrRam.nK A wks .
,„frr kf. I>.'t ilouxl a St 5,IM)(J.,r,|e, ,• ’-•..ineiA ..v
»hworder t>’ h<r tlru.\ ccdi, .lepartinem'’^k'““
,hi« .wnn-KT bccautc ..fa ,mr siLJ? u"'' '"'<1 the' firn‘'L, ' “*’»
finnU-tv-hf manager n.ecf f,, tcrj. j |,^ l’Pr<>vcaed.xtn
.he -'-rnher ,J,H-S 7 '’^^''■l’-•^'. I’he sale d ”

,,|U,.prove .he s..k. bu. .he vi...h,’X;.’:^'‘‘ 'hen nk-.k flu. y.;;,’ "
.iiicn.»,v ,«,„c„. ............... .................. .. ................. I""'.*, I„„i
I hi^ >jrvs VIvein nvgnrhnion
uas. «O .(isrnl.unve bargaining. inUTsrX'pXrW’’' »‘‘'»‘inrag. In eon-
A!l thmgs l>c,ni; v,(..a,. intcgr.v.vc l.arenir,. 7 “ ^’’’rtion
pimnu. ni»7 Because ,be (ormer hu.lds Io,,, felm"''" '''’‘7" har-
w»rbng mgvihvr ,n the fnn,„, |, 1 /'i,
gaininfc lahlv Icelmg i|,at l,e ,„• she has acliir.e,! . ‘‘ 7"' bar-
.he ..lluT han.I, leaves one purly a hner. J, tends m htd|7' l^trgd.ning, „n
.H«vs when ,,c.ople have to work .ogether on an otuX
uhy, clu-n. we sve iiitire • r . •. i
iitswer lies in thv vundidnns luwssan h.r wrpmmg >n />rwniz.u(ons? I'hc
mdu,k- parties who are open with inf, ”*
seruhtiviJy hv both parckX tl^ »
wtiingni by horh'panks " """

Jmaniic •' "’•t'''"'"''”'* "Itc. take on a win-it-any-cwc

Issues in Negotiation
ttv: TOni-hulc owr JisCMssix>n ot negotiation by '^7'^,^ n^in^Ss ami the effect of
negoriafom <1ecision-.nak..ig hia^s, the role o. pcrs-anal.n tia.c,
Cultural differences on iiegotianng styles
Decision-Making Biases That wx!'ha7hoped f..r,
ricgotiating expvnenccs in which the T«SW S I ^uch as JKI$-
Wt: Wetul co be blind co opp<>rtunincs
«hle ...„ of u negotiation. 'I'he fnlkn^mg .dennhes .setc
cm Wind us.'* , ,.nnue « prwi.iady selected
t. Irrstwrtal tXfilatian it cimmim"" would recnn«"en|
a«» ,* bt™. J «H« X rof n«. eneno. ».! X.
iwsi»w« on lead to wastmg a gtejt sflo
munry alirady invi-sted are "sun ^^^uiscsof^b""
hr considered w he., selert.ng h.n.te n>UTses
[

v>« ^in Groups

torBain«,s,«L.n«th.r their g».n must come « Che expend 1
M^noted with ircegntrive bargaining, that needn t be the ««, .
in w?n wtn soln. ions. Sy assuming a «ro-su,n gan.c, you p. oclude oppomtt
ties IO find options (lint can allow .nnlnplcv^cKines.
“ anchor their ,udgtnent,.
on irrelCTuni infoni.arion, snch as an initial oftei. Many fectors .nflocncc the initial
positions people take wtien entering a negonatton. 1 hey arc otten mean.ngks,
E^-tne ,'egoL.Mors don't iet an inidal anchor mmimtze the ainoi.nt of inforn,atio«
ami ihc depti of dunking ihtry lu^e to tt'duatc d smiaaon, and they Uont giv^
iniwh weight h> their opporenr^ initial o^Ter too early tn the negobmion.
Pnww/wrt/tfrtwy. People und co bt; OM’HV affeewd by the way nifonnauonispte-
seniwl io them- For instance, in a labor-nianagctiicni ointraci negocianon,
rhax your emplovecs arc currendv unking $l 5 an hour hue rhe union is seeking a S4
raibe. You «ro prepared to go 10 $17. I he union’s response is hkcly tn be Jiffevemif
x’ou can succe-sshiUy frame this as a S2 an hour gain (in coaipanson to the current
waire? rablicr rhan a S2 aji hour loss (when compared against the union’s demand).
AvaMiiity Xegouators often rely too niuch on readily available iofor-
*

mation while ignoring more rele^-ant data. Things or events that people have often
encountered are usually easy co remember—they're “j;vailable" in their memory. I6
also easy to remember or imagine vivi<l evcnoj. Inrormarion that is easily recalled,
because ic's funiliar or vivid, may be inrerpruteJ as being reliable when itX not.
I'ftecTive regoiiators le.irii to disriiiguish whit’s emotionally faiiuliax to them frem
whdtib reliable ujid rckvant.
The uinner"^ airxe, h friend w<nt in to a local dealership tn buy s new, kuury’ jporp
A

cir. Tlitf list price was $42,300. My friend estimated that the dealer probably paid
around $35,000 fnr the car. My friend was prepared to g<j as high as $41,000, but he
made an initial offer of $38,000. To his surprise, the dcakr accepted his offer. Two
hours later he was driving home in his new car. That night he couldn’t sleep. Li spite
of die fact that he had paid $3,000 less than he ckpceicd, be fell tliat he still may have
paid too much- He was experiendog “winner’s curse,” or the regret one feels after
ulosing a negotiation. Bcciuise your opponent arcepted vour otter, veu bccomt con-
cerned that you offered t<io much. This posttiegoujtion reaction is not unusual b
most negotiations, OJK side (usurily the seller) lias much betfer infiinnatioii ihnti dw
orher. V’ei people often tend to act in a negociation as if theirepponem is inactive and
ignore the valuable information ilut can be learned by tliinking about the ocher side
decisions. \ou can reduce die ’‘curse' by gaining a*; rnuch information as possible
putting yourself in your opponent's shocs-
Q-veran/nlence. .Many of die previous biases can combine to inflate a person’s conS-
dence ui his or her judgment and choices. W^cn people hold certain beliefs and
e^ecmuons. they tend to ignore infornaiion rono adieis them. ‘Ihe result»
that ju^goTiATons tend to be overconfident. Overconfidence, in turn, lessens the inceiv
uve to roinproralse. Considering th« suggestions of qualified advisen> or
nh,eeiive assessment about your position from a neutral party arc rwx> wav's to
this (endenev. '

Trans i„ Nego,iatio« C^an von predict an oppc«enr%

V ^bout his or her' ,.crs<)nalin-? It’s tempnn?
wodtlbe "’'Sht assume that high risk takefi
 (X-rrall assessments nfiJie personal,ry 12 O.nflM and NtRobaiion
.licj. n-aits have nn signiHcant direct effect m ^"<1 *hat persnn-
..iircHnts I h.s conrlusi.w is in.pomn, ,
rtn HK^ =«’<' siniaticnal fiicrors in c u-h
i^meni and his or herrliaracrcristics. ' ‘*‘P‘inmg rpufje and not on your

Cdtural Differences in Negotiations Altlmurf, ,h

dirarr rcbtinnship betw een an individuals Dcrsnrv?li, "« ^gnifinint

bsckgrot.iiil does sccin to be relevant. Newttiatin»

culture.: egonaung styles deariy vary among nanonJ
T he Frtnth like conflict. Thev fremienilv n.,;,
„:putntH>n> by thinking and actiitg against
a long ume in ncguuating agreements, and thev □len'x werk’^n^^
ivhethcr them opponents like or dislike rhcin.'^ Tlic Chinese al i draw UK^OS'

„„ns. hut for a d.ftcrcnr reason. They believe that negoriauons never end when
you diuit you ve pinned douT cven^ detail anti reached a final solution with a^hinXe
executive, iha. eve.-utn-e might stuiJe and start the process all over agam. Like the
Japanese, the (.hmrse negouate tn develop a relationship and a conunitment to work
together rather than to tie up every loose end,*'’ Americans aie known an.und the
world fur their impatience and tlieir desire to be liked. Astute iiegobatont from other
cuiinTries often tui-n these eharacicrisTics to ibeir advantage by dragging out neguria-
rioiis and makjng friendship couditioiMl on the final •settlenunt.
The cultural ccmtexi of the ncgfiriation signilioiidy influeiivcs the amount and
Tj’pe of preparation tor barg'diiung, the relative emphasis on task versus interpersonal
relationships, the laciies usedt and even where the negiuititior should be conducted.
To further illuurMie some of these differences, let’s look at nvo studies comparing the
influence of culture on business negotiations.
rhe first study compared North Ainerir«ins, Anilh., and Russians,'" Among the
factors that were looked at uere their negoriaring style, how they resjKuided lo an
opponents arguments, their approach to making concession.s, and how they' handlctl
negotiating deadlines. Kortb Americans tried to jK-rsuade by relying on facts and
appealing to logic. They countered opponents’ arguments with objeciixx fans. ITiey
made small concessions early in the negodatinn to establish a relationship and usually
reciprocated opponents* concessions. North Anierieans treated deadlines as very
unportant. The .Arabs tried to persuade by appealing to emooon. I hey couiucrcd
opponents’ arguments witli subjective feelings. They made concessions throu^out
the bargaining pnK-ess and almost always recipriK^-ned opponents’ concessions. ?yaos
appniached deadline.^ very casually. The Russian^i based their arguments on /»serte<
*rf«ls. Thev made few, if any. con«i.bions. Any uonte.ssinn offered by aii
'‘as vicHcd as a weakness and was almost never reciprocated. Hnally, the Russtans
tended IO ignore deadlines. ,. -.hihited
The seeond study looked at verbal and nonverbal J™ H
by Nurth .Americans, Japanese, and Brazilians dunnp ba ' Brazilians mt
Snmc of the differences were particularly the Japanese and
average said No eighty-thrcc times, as compared » i mnr.? than live periods of
nine times for the Nt.rth zXmcricans. The Japanese isp ayesession, North
'lienee lasnng longer than ten seconds duim^; e h
avtragvd such penodst iht Hraz

/: <
 41
Graopa tn (tw (tifantrarinn

n..,.l.vsic«tv ........ 4v/JiU.tln..rH,.|...nu...ilunn,;.uynt..,......y-m p. tor ,

,1K ll, 4z.h..nv IK.I >•...•!. ...her live mues ,IMH hour.

IMPLICATIONS FOR MANAGERS L

Miinugiiig ContJUl
Al..ny i«nplf a^suin. thHi con,.:! k nhtvil io lower group JIKI orgj„iz«i,.na|
[,cH.ii-i,i.,iiiv. I'his iTwpivr Ini-- dcioonsiiiHtd that ibis assuinpiion is i.btl, FAIM!,
CoHlIivl enn be eillii r vonstnii tivt or «k'Mi iiciive lo iln- bou linning ol a group„r
iinil. VVh. n us ino high or ...................... ... K biiulers (H;rloiiiw«is'e. An o|„iii,al lewl is
one in wliuli then- is enough « onnivl hi (Mrvi-ul si.ign.itHio. stiiiuil.iii- creativity,
Iillow iciiMoi,MiolH-rel«'!iscil, iiiul iiiili.i(vthe seeds lor dmngv. yet hot so much
to be iliNruptivc
IVIwl ihlvtcv van wv guv to nianngcis f.iced with exussiw oinlljil anil the
nvxal h) re<iuiT ii^ DIIJT! nssunn* thni ilivrc s one contlii t- 0235 ipproach that
will alwiiys Ix' best! Voii shoiilil 5vk( t (hv rcMjIutioii technique npprnpriatt for
each viluaiioH. Some gtiiJvlHU's lollowJ'^
UM* i whe>i (|ui( k. cktiMVc net ion is vital (in vtikTgcncies); rm
iin|M>riant issues wbun tiII|MipiiLii actinias need invnling (in vosi5 culling,
en(oitingun|H»ptihir rules, diseipline); on issues vital to the organizatioifs welfare
when you kii<»w ytni're right; and against fKople who take advantage of nona an*
jK’titJve Ixdiavior.
Use to find an integrative solution udien both sets of o)nterns
Are t<Ki iinponant to IK* coniproinised; when your objective is to leant; to ineige
insights Iroin people with ililferent perspectives; to gain eomntitinent by incor-
porating toru eriis into a consensus; and to work through feelings that have inter-
fered with a retaoonship.
Use avMthuhc when an issue is trivial or when more ini porta nt issues a«
pressing; when you perceive no cbaine of satisfying your ea inherits; when |xiten-
bal disruption outweighs tlie henefus of resolution; to let {K:o|)le cool <lown and
regain perspective; when g.uhenng information supersedes immediate deeisiun;
when others can resolve the conflict inoiv effectively; and when issues seem tan-
gential or syinpioiniitic of oilier issties.
Use fiMtHJHwtathiH when you fiml you are wrong and to allow a lM‘«er ptxsi-
tion h» IK* heard, t<> learn, and lo show your reasonableness; when issues are more
tnt]tortan( to others than to yourxeh and to satisf)' oihei’s and maintain coopera-
tion; to Iniild MH-ial credits for later issues; to minimize loss when you arc **ut-
I Hatched ami losing; when harmony and st a hi h tv are especially im|)orrant; and h’
allow em|))oyees to grow by learning from mistakes.
l»sc*<ewp/iDwnf when goals are uu{>onant but not worth the eflbn ofpoteft-
twl disruption of more assertive s; when op})onenu with equal
5157
arc couumned to iiiuiually exclusive goals; to achieve tem|>orary* seitlemeno lur
eomplex issues; m arrive at expedient solutions under time pre*ssure; and a><
backup when odldMiraiion or uHii|Tetmon is unsuccessful,
 Chapter 12 Conflict and

Toward Improving Negotiation Skills

opponents concessions.
fhi' Problem, Sot Pv-sojuiHhes, Concentrate on the negotiation issues
not on the personal characteristics of your opponent. When negomdons
get tough, avoid the tendency to anack >^ur opponent. It’s your opponent’s
ideas or jiosition that you disagree with, not him or her personally. Separate
the people from (he problem, and don’t personalize differences.
Pay Litth Attention to Initial Offers. Treat initial offers as merely a point of
departure. Everyone has to have an initial position, I'hey tend to be
extreme and idealistic. Treat them as such.
Jtntphasizc Win-Win Solutions:. If conditions are supportive, look for an inte-
grative solution. Frame options in terms of your opponent’s interests, and
look for solutions dial can allow both you and TOur opponent to declare a
victon*.
Create 4an Open anJ Trusting dintate. Skilled negotiators are good «listeners,
e•
ask questions, focus their arguments directly are not defensive, and have
learned to avoid words and phrases that can irritate an opponent (e.g.,
“eencruusi offer,” “fair price,” “reasonable arrangement”). In other words,
they arc good at creating the open and trusting climate necessary for
reach-
ingan imegrarivc settlement.
 PART IV: The Organization System

CHAPTER 13

Foundations
of Organization
Structure
After reading this chapter, you should be able to

1. Identify ttie six key elements that define an organization's structure

2. Describe a simple structure
3. Explair the ch^acterrstics of a bureaucracy
4. Describe a matrix organization
in r* «o

Explain the characteristics of a * virtual * organization

Sumindrize why managers want to create bouridatyless organizations

List the factors that favor different organization structures

Explain the behavioral implications of different organization structures

Tdwi h^vedifferem strucn.n.-s and fhji

K-alh, in rb<i folloxving P^ges, 'defincT/v^'^ aO'hides and bdu^dor. .More specit-
'/atiiin's sinirnirv. orew-nr Irilf ,l **‘’‘«P<»»cnts thjt make up an uiyan-
■.ontiiigeiuy fachMs that make cvrfd,7i^' T’ 77’''*“''“*
•hms. and tcnclud^: by considtrring the
•’fnitturus have on en.pinyce txthavin/'^ d'Hercnt effects that various urg.-mitation

WHAT IS ORGANIZATION STRUCTURE?

An organization structure defines how Job casks are formally ilivideJ. group«^<*’
tiMjrdin.ifed. For inshirKc. Johnsen & Johnson has historically grouped
 ChaptMlS ■■
^i-aut(iiKHno.is companies organizerl around Siruciw
these wnipanies considerable «lecision.,n.ki,n, bmrT""® ™«MRm of
Tlicrc arc SIX Uy elements that manaire^
their nrpmization-s su-uemrv. These are wnVk „?e i^’ J^'P*
<hain of command, span of . ontrol, ccntralisanJ ] "'^F^'^nenuUaation,
’ ExJiiHii 13-) pra»cnts «?ach of these and fonoal-
struciural The following sections deserih^rh'^ as answers t„ an important
ns aesenbe these SIX elcmencof stnicnin:.
Work Specialization
Early in the twentieth century, 1 Icnry Ford became r;,-k ...if ....
mobiles on an .issembh’ Imc. FA er) Ford worker was assien'ed '“‘T’
For instance, one person would just pit on the ried.t c. repeutjve task.
„.ould instidl the h,4.t front door. By breakin, jobs np^n?;
will J. could be performed over and mxrap.m, Ford wxs able to prtxlucv ea«aTthc
rate ol one every ten seconds, while using employees who h;«d relatively limited skills
Ford demonstrated Jat work can be |.crfor.ned more elT.cientlv ,f employtx-s
arc allowed to specialize. Today we use the term work specialization or irt-mw «f
labar in dcstTilK lilt degree to which tasks in the organizanon arc subdivided into se,;-
afatK jobs.
I he cwncc of work si>ccwlizatioa is tlvit, rather dun an entire job being done
by one individiiab it is broken dou*n into steps, each step being completed by a sepa-
rate individual. In essence, individuals specialize in doing part of an activity rather
than the enure activity.
By the late 1940s, most manufacturing jobs in industrialized ctnintries were
being done with high wort specialization. Management saw diis as a means to mate
the most efficient use of its employees’ skills. In most organizations, some tasks
require highly developed skills; others can be performed by untmined workers. If all r
workers were engaged in each step of, say, an orgunizarion s manufecniring prtx’ess, all
would have to have the skills ncccwry m perfonn both the most demanding and the
least demanding jc^is. The result would be that, except when i>crfurining the iwt
skilled or highly sophisticated tasks, employees w'ouki be working bclow' their skill
levels. And, since skilled w'orkers arc paid more tlum unskilled workers and tlieir
wages tend to reflect their highest level ul skill, paying highly skilled w or ken? to o
easy tasks represents an inefficient use of organizational resources.

EXHIBIT 13-1 Six Key Questions That Managers Need toAnswer in Designing
the Proper Organization Structure

The Answer Is Provided

The Key Questinn Is

1. To »hat degree are tasks sulxlividcd uiio

■separate jobs’
2. OnwhathKiswilliobehegroupidtogethfr; Cht/i"
Id ufaun de I iiuhviduak and (TToups rt’p»>rtr
Hem ffum* irufe^idaals can < marugcr eftkicntly
Mid cffmvciy dirtci?
Where «)ue» Owiiion-maiuim authtri ty lie’ J4
In ahu degree »ai there he rule* and reguhtion.
IO direct employ«* and
Pare IV Tlie Organisation Systtm
Mtnauen also I-keri for other efficiencies that could bj achieved through work
•r niovec shHs at performing a task successfolly increase through ren,
XiTess Hme is spent in changing tasks, in putting a^.ay one’s took and equips,^nt
“pnor step in the nork |,rocess, and in getang ready for anodter. EquaUy impor-
is easier and less costly to find ami trafo workers to do specihe and repetitive tasks tha^
to do a broad range of diverse tasks. This is especially true ul foghly soplusticated and
complex operations. For example, could Cessna protluce on e Citation jet a year if one
person had to buiJd lhe entire plane alone? Nor likciy! Finally, work ^ipctialization
increases efficiency and productivity by encouraging the creation ot sjiecial invenowts
and nuchineiy.
For much nfdic first half of chc twentieth century’ managers viewed work spe-
cializarion as an unending source of increased product:vity. And, up lo a point, they
were probably right. Because spccdaliz-atinn was not widely practiced, its introduce
almasc alw'ays genewed higher product!viry. But, by the 1960b, tliere was increasing
evidence that a good tiling can be carried too far. The point had been reached in some
jobs at which the human diseconomies from specialisation—which surface as bore-
dom, fatigue, stress, low productiv’ity, poor qualicj’, increased absenteeism, and high
turnover- - more dian oftset the economic advantages (see Exhibit 1S-2), bt such cases,
productiviiy could be increased by enlargiug, rather than narrowing, the scope of joh
activities. In addition, some companies found that by giving employees a varietv cf
activities to do, allowing them to do a whole and complete job, and putting them into
teams with interchangeable skills, they often achieved significantly higher output with
increased employ’ee satisfaction.
Most managers today see work specialization as neither obsolete nor an unend-
ing source of increased producrivity. Rather, managers recognize rhe economies it
provides in certain types of jobs and chc problems it creates when it’s carried too far.
You’ll find, for example, high work spedalizadon being used by /McDonald’s to effi-

EXHIBIT13-2 Economies and Diseconomies of Work Specialization

 mainicniinrc organizations. Or, rhe other h , “ ’Tectalisis in inost heairti
Corjinraiion, Xtrox.andUnisyTjh.ivehad.sticces.shL’...,'^"’’^"'? Saturn
leilueing sfX'cialization. roadening the scxipe of jobs and

Once fou've divided up jobs rhrnugh work sDeci ilir^iL,.,

fohs together so that common tasks can be coordinated T^’ h "^1? *ese
^O4>e.l Wgethcr is called dcpartnientali«tio;
One of the most popular ways ,o ^^oup activities is by yi.^rr.cnt performed A
„,anuhcninng manager m.ght org;m.ze his or her plan, b/sCparadng^, XL
accounnng, manufactur.ng, personnel, and purchasing specLists fnt.^cLnmon
deparrmerns. Of course, depamncntal.zncion by function can be used in all types of
organ,7-auons^Only the functions change to reflect the organization's obkctivXand
activities. A hospital might have departments devoted to research, patient care
accounting, and so forth. The ma,or advantage to this tvpe of grouping is obtaining
efficiencies from putting like specialists together. Functional departmentalization
seeks to achieve econonue.s of scale by placing people with coiiunon skills and orienta-
tion'? into conunon units.
Tisks can also be deparuiiencalized hv rhe organizjjtion pro-
ducer. Procfcr &• Gamble, for insrance, rceently reorganized along these lines. Each
major pnKkict—siich as Tide, Pampers, Gharmin, and Priiigks—is now under the
authorin' fxectnive who will have complete global responsibility for that
product. 'The major advantage of this type of grouping is increased accouimbility for
prcxluct pcrionnance, since all acoriries related to a specific product are under the
direction of a single manager. If an organization’s activities were setA-ice-related rather
than product-related, each service would be autonomously grouped, for instance, an
accounting firm could have departments for taxes, managemenr consulting, auditing,
and the like. Each would offer a commun array of services under the direction of a
product i>r sendee manager,
.Another way to departmentalize is on the basis of or tendrory. The
sales function, for instance, may have western, southern, mid western, and eastern
regions. Each of these regions is, in effect, a department organized around geography.
This form of departmentalization can be valuable if an organizations customers arc
scattered over a large geographical area.
Al an .AJeoa aluminum tithing plant in upstate New York, production is orga-
nized into five deparnncnis: castiag-, pressing,; tubing: finishing; and inspLCtnig, pac -
•ng. and shipping. This is an example c.f departmenralizatmn
dqartmenr specializes in one .specific phase in the production o a uiiiinuin
The metal is eas, in huge furnaces; sent to the press department,
into aluminum pipe; transferred to the tube mill, where it is sire c finally
and shapes ortubmg; moved n. finishing, where it is ’ h P^
»mves m the inspection, packing, and shipping departoKm^ to
Quires different skills, this method < >ffers .a basis for the hon g

■A final catcgimv of depanmentalization is m use

*e organizanon se^ks to reach. The sales activities m an otiKc pj .
t
The OrjCBfuzaoon Sywcm
.. .„ i,„„ tKrcc dcMronents to *eni« retail, wholesale, ang'^
m«an«.he hmkun J^segment irs staff on the basis of wheA^ '
ipivcinmciitnistomcni. . . j dienw I^c awiumpr1<*Tt underlying <-U5itqniet
5.™.- SZ;::.. e^a. ..eparn^^ '
deparotK-ntalizanon that we’ve
descril.e?,\ .najor lnpanes<. dectron.o. finu. for mstancc. nrgan.zes each rrf .n divi-
sions along fui.cdona) lines and i(s nn.nufacunng units around pnxesses; n dep9„.
inenulizcs saks around seven geographical repnns and divides ta^ sales region into
four customer grouping. Iwo general trends, houeyer, seein to be gaining momen-
nim in the past decade. First, uustonirr .Jeparnrentalization has grown in ps,pularity.
In order tn better monitor the needs of < ustoinei-s and to be berrer able to respond tn
changes tn those needs, many organizations have put greater emphasis on customer
departnieniidiiaiion. The second trend is that rigid funetionai departtnentaliwtion is
being complemented by teams that cross traditional departmental lm«. .^is we
described in Chapter H. as tasks have become more complex and more diverse skills
are needed tn accomplish those tasks, management has turned to cross-functional
teams.

Chain of Cuinmand
In the 1970s, dw chain-uf-coininand conttpt a basic comerstene in the design of
organizations. zV you’ll see, ir has far less importance today. Hut contemporary man-
agers should srill consider its iinplioitions when they decide hou best to sinictwe
their organizarions-
Tbe chain of command is an tinbroken line of authority that extends from
top of the organization to the lowest echelon and clarihes who reports ro whom, li
answers questions for employees such as, “Wio do f gu to if I have a problem?” aad
“WTio am I responsible to?”
Yon can’t discus.^ rhe cliain of aimmand without discussing two complementary
con<x?pts: authority and unity of command. Authority refers to the rights inherent in
a managerial position m ghc orders and expect the ordcre to be obeyed. Jo fAdliiaW
uwrdinanon, organizaiioui give each managerial position a place in I he chain ol com-
mand, and each manager is given a degree of auchoritt’ in order to meet his or hex
responsibilities. The unity^of-comtnand principle helps preserve the concept of an
unbroken line of authority. It states tlnit a person should have one and only one supe-
rior to whom he or she is directly resjKinsible. If the unit)' of command i.s broken, a
subordinate might have to C(^c with conflicting demands or priorities from several
superiors
Funes change, and so do the Ivaric tenets ok oi^anizational design. The concq>cs
of chain of awnmand, authority, and unity of command have suKstannally lew rele-
vance today because of advancements in computer technology and the trend lowani
cmjx>wenng employees. lowdevel employee todav can access information in
onds that was avaikhle only m top managers 20 years ago. Siinilarlv, networked cixn-
puters increasing y allow employees anywhere in an organization to contmunioit^
wim anyone else without going through formal channels Moreover, ihe concepts ot
^’•hain of command are increasingly less relevant
ope g emphyecs are being empwered to make decisions that previiwsky
 J . tv

resenxd for management. Add to th,\ tr> u. of Otg,nixrtcmStniame

funmonal teams and the creation Z ’’ Popularirv of «-lt ,
IKMSCS, and rhe uiiin,--<>f.conniwn l • ^^fucfiral desiEnVth^?’"'’^'”^
course, still many tirganizations that'’fina^4' relevant?^Th' "’“'“P’*'
^e chain <.f command. Th..

Span of Control
How many subordinates ca,, a mana.r ■ .
□on of span of control is impnrtaiK because" to Tl'' "rhis ques-
nomber o levels and maj»,^^fs an or^ruzatmn’ has\ 1? T'’ " the
efficient dte organizamm '’"'"S equal, die wider
validin- of tbs .statcjiient. iraaimn. .\n cxninplc can illustrate the
.-Vsunie that we have two ornnip^ij i
operaiivv-ievd employees. ;Vs Exhibit 13-? iUustrLJ^ ^‘pproximatdy -+,100
and the other a span of cierht, the wider -;nun n k ttniforw span of fbur
matelv SOO few. managers. Ke '"X? ‘‘PP"^-
spn wotdd save $40 ndL a y^mTZ™?S',
more efficient in lenns of cost. But -it kr^o • •i ously, wider spans are
Thark when the span become.s too large,

supernsoT. no longer havv the d.ne ro provide the n.es.n- leadership and" X '

employees, a manager can maintain close conlrol. Rut small spans have rhrcc major

drawbacks. First, as already desenbed, they're expciisive because d,ey add levels of

maiugemenc. Second, they make vcruejl aimTniinication in the organ! zarion more

EXHIBIT 13-3 Contrasting Spans of Control

M«mben at each level

Assuming Assumirg
span of 4 span of 6
(Highest)
OrgAnlzAClen&l level

U/

vjjfes’.
Ln

wa* Span of 8:
= 4.0%
o*

Operatives
Managers 1-4)« 585
(Levth
Span of 4:
OperaiivK «4.046
H^nsgers (Uveis J-6} = IJ65
tart W The OtgMttatwn System i j . ^351
nfiKT^nicnt 'l^iird
upper managenient. nnr<!, 'inall span* oi
and discooi-age cmplwec ...ward larKCf ^pans of control. Wide spu^
The trend ,n recent X. X cut overhead. .peS^
arc conaswnr M .th get Jk.scr ro customers, and cmtxiwer emplnj^.
fkcKion tnaLng, mcrca suffer lieeause of iliesi wdet spans

Sift E can handle a wider span whe.t r.nplot-ees know their |obs nis.de and out u.
can mm to dieir co-workei-s when thw have quest.ons.

Centralization and Decentralization

In som« iHcamwrions. top luanngers mnke all the deuMons. Lower-level raanaeers
incrcly cam out top nwnaecmenfs Jircciivcs. At the other extreme are organizrjons
in which deei^on malhig pushed donn tn the managers who arc closest to “rhe
action.” The former organizations are higbk centralized; the latter are decentralized,
The term centralization refers to the degree tn which decision making is con-
centrated at a single point in the organization. The concept uicludes only formal
auchorihs that is, the rights inherent in ones position. Ij’pically, its said that if top
management makes the organizations key decisions with little Or no input from
lower-level personnel, then the organ iza Linn is centralized. In coiiuust, the more that
lower-level personnel provide input or arc actually given the discretion to make deci-
sions, rhe more ik'ccntralizfithit there is.
.\n organfz-ition characterized by centralization is an inherently different animal
structurally from one that is decentralized. In a decentralized organization, action can
be taken more quickly rc.> solve problems, more people provide input into decisions,
and employees arc less likely to feel alienated from those who mike the decisions that
affect their work lives.
Consistent with recent irianagemcnt efforts to make organiziitjons more flexible
anti responsive, there hxs been a markeil trend toward decentralizing decision making.
In large companies, lower-level managers are closer h> the action and typically have
more derailed knowledge about prcAleins than do top managers. Big retailers such as
Sears and J.C. Penney have given their store managers considerably more discretion
in choosing what merchandise to stock so that their stores can compete more effec-
tively against l(x:nl merchants. Similarly. Illinois Tjol Works is producing S6 billion a
year in sales from more than 400 separate business units - Tlie management of Illinois
1<K>I—which makt^s e%eryihing from welding equipment to nails to molded plastic
paru -has found that creating these hundreiLs of separate units, each with its OUTI

general njanager, allows each business to focus on its customer set with l.iser-hkc
uKcnsity. The feet that Illinois T wl has had average annual earnings growth of 17 per-
cent over e past ten years indicates that its highly decentralized structure w'orks.

Formalization
iz*d H lullT wbicli jnhs within an organization are srantbnl*
,ner what B to be done, when it is to be done, and how he or iJie dK«U
 , , ., ChapUrn Foundations nfOtBanbaiioBStrwwe
j, h:mpl«’y'-‘" ’* expected .»!«-avs to handle the sa
uav, resulting m .i consistent and unifbni, nutnur fhe same
j„p of organizational rules, and clcarlv defined nroced7r
;,gxnizanons that h.ave a high degree of fonn.SSttu
bchax-iors are relat.veiy nonprogranunetl and e.npimxes 2?*’
doin to csercise discretion in their work. .An indivizt.. !•' ® of free-
inver^eb rfi.iied to the amount ofbeha\aor in diat iob th t^' '«
^...ooix rlieretfire, the givater the st ndaX±
£: bow his or her work is to be done, S.ndSt'

The deg^e oHonnali^tion can va,^- widely among organizations and within
organizations. Ceiwm )obs, lor tnstanee. arc well known to have little formalizaoon
College hiKik irayelers—the represenuuves of publishers who call on professors to
iefonn them of their vompanys new publieauons—have a great deal of freedom in
their jobs. They have no .standard sales “spiel,” and die extent of rules and procedures
goreming their behavior may be little more than the requirement that they submit a
weekly sales report and some suggestions on what to emphasize for die vanous new
tides- At the other extreme, employees in clerical and editorial positions in the same
publishing houses are required to “clock in” at tlreir workstations by 8;00 A.M. or be
docked a half-hour of pay and, once at that workstation, to follow a set of precise pro-
ccdures dietdied by management.

COMMON ORGANIZATIONAL DESIGNS

We now turn to describing three of the more common organizational designs in use;
fhe siwpk stnutare, the hiiTaucnjcy^ and the j/tatnx snucnm.

The Simple Structure

What do a small retail sttrre, an elecU’omcs finn run by a hard-dnring entrepreneur, a
new Plnruu'd Parenthood office, an airline in the midst of a coinpanywidc pilots
strike ha\ e in common - They probably all have a simple structure.
The simple structure is characterized most by what iris not rather than what it is.
Die simple structure is not elaborate? It has a low degree of departmentalization, wide
spans of control, and little ibnnalizadon. The simple sirucnire is a “flat” organization; it
usually has only two or three verticil levels, a loose body of employ ees, an one in
uil in whom the decision-making autliority is renrralixed. Its most widely pracocec in
small businesses in which the manager and the owner nre one And the same. But iris a so
preferred strucTure in a time of temporary crisis because it centra i7xs ,
The strength of the simple structure lies in its .simplici^’. b
inexpensive tn maintain, and acct^untahility' is clear. One iua|or intreas-
Jiffifult to mainuin ui an\-thint< other chan sin^Jl orgam/uuons. Ir 'cc -
-Kly in.deq«u as an organ,zanon grows because its low
^ah74tH>n tend to create information overioad at the cop. j ^'u ringle
,„„r and c,,, =ven„.lly he d,e
«<caitnc tries to continue making all the decisions. . cnmloy fihv or a
“^hung of many small businesses. X^Tien an organizanon iboiw. If
*’«ndred pcojrle, it’s ven difficult for the owner-manager
PtrtIV Thr

The BureautTBLv
SundmJizacoft’ Thais die kev com-ept di.U underlies all bureaucracies. Take a look at
die bank where yOh keep your checking accouiU; ^hc department store where you buy
vour clothesj or rhe government offices rhnr collect your taxes, enforce health regul*.
dons, or provide local fire procection. The> all rely fjn standanlized work processes
for cwniiiiauon and control.
Tlic burcaocrsicj’ is cbawTcrizcfl li>' highly routine operating ti^ks achieved
through speaalmrion, very lormaLzed rules and legulalioiis, Uhks that ate grouped
into ftiiutional deparnnents, vrntralizecl authorin', narrow spans of conmd. and deci-
sion making that follows the chain of command.
Tlie primar)* strength of the bureaucracy lies in its ability lo perfonn standard-
ized activities in a highly efficient manner. Putting like .specialties together in fuuc-
donaJ departments results in economics ot scale, minimum duplication of personnel
and equipmaiu and ernjitnyees u'ho have the opptinuiiiiy to talk “the same language"
ornong tlieir peci s. Fun hen bureaucracies cm gel by nicely with Iw lalented—and,
hence, less cristly—middle* and lower-level managers. The pen aMvencks of rules and
regulations .snbsututes for managrnal discretion. Siaruiardiaed operations, coupled
with high formalization, alien*' decision tnaking to be ceniriilized. There is little need,
therefore, for innosadvv and experienced decision tnakers below the level of senior
execu Gves.

obsessive concern with ftillowuig ihe rules. WTien cases arise that don’t precisely fit

IBAl, Ciencral Electric, Volkswagen. Maisushita. and Royal Butch Shell—wasorp'

nrzed as a bureaucracy. Although the hurvaucracy is out of fasbirm rnday—largely
because it has difficulty responding rapidly co change—the maiority of large organiza-
dons still take on basic biireaucratic ch a meter is Mi’s, paruc iilarly specialization and
high formalization. However, spans of control have generally been wddcncil, authority
has become more decent ralizcd. and fujutional dcparltncnts have been supplemented
with an increast^d u>e of teams. Another trend is mward breaking bureaucracies up
into smaller, though fully funciioning, mini bureaucracies. Each of these smaller vet-
kl^ P*^ople, has its own tnissioii and profit goals. hV been estimated
about fifteen j^rcenr of large corporations have uken this direction.*
mst^ce, Exsunan KiKlak Im transformed over 10(1 producrion units into separate
businesses. And as we saw earlier, Illinois Tool Works has sti'uc.'tured its entire organs
iMioo into small, independent busiue»ies.
 Chapter n
The Ma**^ Structure 1S7
P-I>ut«r orga.»z.tk«»l design option is the nurrix lx ,s nse-d m
j«rfising ag^«^*je.s. aerospace r.n„s research and <kvd.,pn.ent luboutnri«. «>n-
^el-on conn«»HC^. hospUah. gosermnent agencies. nixivcrMiic-s. maiugmenteon-
^kijtp companies, Kssentially, the matrix combines two
The strength of hinchoiiiU dcparwe:\ti»Uz^rDon hes in pulling like specidists
cethcr. tJnuiping specialists mndntizc^ the nunsher necessary while allowing spe-
pc'olcd and shared acroto products. li:> majnr weakiieja is that
i5(lifth'iih It) coorduiate th^ specialists usks so that th^ir diverseproiemare com-
^•ted on ririi^* and within budget. Producr deparnncnralizabun. uu the other h«id.
K (yuit dy ihc opposite sirengths and weaknesses. It f)Knlitates e<x>rdinanon Q( spe-
• r B so that they can meet deadlines and budget targets, and further, ir provides
^ar responsihilit)’ for all activiiies related ro a product But activities and costs are
^"plicated "I’he matrix anempts to gain the strengths of each while avoiding their
niosl obvious strurtural ch a raci eristic of the rnatrix is that it breaks the
.,n nf-comruarid concept. Employees in the inacrix have two hos.ses—their fiinc-
rinnai department managers and tlieir product managers. Therefore, rhe imuixhas a
HWWt nXh^u-s the nmtnx form as us«l in . college of busincs,s

non. The ac^ulemic department of atconntins, adnmustmtnx smeJjes, tiuitemg.

The OrfMiadon Sysrem
«, forth «re ftincoon-1 units, in .tWition, specific pr«gr.n« (that is. pr.xiucta) m
overlaid on the fitncQons. In this way. members m a tnatrix structure have a Jo,} 1
assiCTmcnc -w thdr functi<mfll Uepartmene and rn their pnxJuct groups. For <
insmTuv. a professor of acvouniing rrx:hmg aJi undergniduate counc reiw.m u, the
director of undergraduate programs as well as to the chairperson of the accounting
department, . ...
r he strength of rhe maonx lies in its ability to facihwte coordmanon when the
organi/jtion has multiple complex and interdependent acnxinc-s. As an organization
gets larger, irs inf6nnation-(M-CK'cssing caparit)’ can bcvoiiie overloaded. In a liureao-
cracy, coiiiplexiry results in increased fonnalizutioti. The direct and frequent coiitaet
between dit'fvrent spetialtics in (he matrix can make for letter eiimmunicauon and
more flc.vibiliry. Information permeates the organization and nxirc quickly reaches
the people wlio need lo take account of it. Further, the matrix rduccs hureau-
pathologics. The <liial lines of authority reduce tendencies of deparanencai memheH
to become so busy protecting their little worlds that tltc organization's overall gnih
become secondar)'.
Tlierc K sko another advantage ro the matrix. Tr facilinnes the efficient allix:a>
non of specialists. UTicn individuals with highly specialized jikills are lodged in one
ftjnccional department or product group, their talents are monopolized and under*
utilized. I*he matrix achiev'es the advantages of economies of scale by providing ilie
organi7.arion with both the best resources and an effective way of ensuring their efii-
dent deployment.
I he major disadvantages of the uiatrtx lie in the confusinn it <Teates, its prupen-
sjcy to foster ptwer struggles^ and the stress h places on individuals. \Micii you dis-
pense with die unjty-of-comniand concept, ainhiguicy' is significantly increased, and
ambiguity often leads to conflict. For example, it’s frequently unclear who reports to
whom, and it i.s not unusual for product managers to fight over gening the Ixvst s-pe-
cialists assigned to their products. (.2onfusion and ambiguity also create the seeds of
power struggles. Bureaucracy reduces (he potential for [xiwer graiw by defining the
rules of the game. V^Tien tliose rules arc “up for grabs,” power struggles between func-
tional and product managers result. For individuals who desire security and absence of
ambiguity, this work diinate can produce stress. Reponing to more than one boss
introduces role conflict, and unclear expecuihms introduce role ambiguity-. The com-
fort of bureaucracy's predictability’ is replaced by insecurity and stress.

NEW OPTIONS
In recent years, senior managers in a number of Organizations have been working to
develop new structural options that can bener help their fimu compete effectively. In
this section, w e’ll describe three surti structural designs: the team structure, the virtual
organization, and the houndaryless organization.

The Team Structure

•As d^nl>ed in (.hapter 8, teams have become an extremely popular means around
* K to organic work activities. An organization that uses teams as its central voor-
dinamin device hxsa ream structure. The primarc characieri-sticsof the team sirucWrt
r*Jrtf* I’arriers and decentralizes decisiofl mabng w *■
leva ot the work team.
 ChdptBf 13 L*
In smaller companies, die team OTutcur _ "f<3rea'iTad«, Stt
ucnjTt IS#
ins„n«. K^dms. an upscale reswurant in Rosio?d«t^?nn?’'' "^g^nizatiw. For
^,.,p!,rdy anninrf teams.^ J here are teams „ eX?7 « "rganv,i..d
fish, Fwsrn'-and each has full responsilnliry kitehen-mea,,
coinp.w.e.s are using teams ihrmigb.m.. Kor ?« ???' T
;v, L tio’-v & Associates employs 6.200 peonte rh.^ Ciore-.e, maker
employ'-’'-’^ Of less and everyone is part of a self--man,3'’'"^^''0
Afore iificn, [Mmcularly among larger ore
okments what is typh-ally a burcaucraev. Tlu. sinicuire com-
,he efficiency of huicaucracy’s standardization
reams provide. fining the flexibility that

The Virtual Organization

Whyuun when yon can .on? That’s the essence of die virtual organizatina^
small, core or-an.zat.on that outsources major business functions. In snucn.ral XT
the virtual organ.zanon .s highly centralized, with little or no departnientalization '
Companies such as Nike, Reebok, Liz Claiborne, and Cisco Systems are just a
few of the thousands of companies that have found that they van do hundreds of inib
lions of dnilars in hiismess without owning- manufarniring facilities. Nike, for
instance, enms no plants. It designs .shoes and then ouwnnrces their rnnnu&cturmg.
Most of Cisco System's computer networks are made and assembled I7 outside hrnw.
National Steel Corp, contracts out its niailroom operations. AT&1' fems out its
credit-card prcK^essing. ExxonMobil Corp, has turned over maintenance nf its refiner-
ies to another firm.
What’s going on here? A quest for mx<imum flexibility. These “virtual’’ organi-
zations have created networks of rclatitjnships that allow them to contract out niaiiu-
^cruring. distrihutiem, marketing, or any other business function tliat management
feck can be done better or cheaper by others?
The virtual organization stands in sharp contrast to the typical bureaueraey,
which hxs many vertical levels of management iind where control is sought through
ownership. In such organizations, research and devciopinenr arc done in-house, pro-
duction occurs in company-owned plants, and sales and markedug are performed by
the company’s own employees. To support all these levels, management has lo employ
extra personnel, including accountants, human resource specialists, and awyers. e
virtual organization, however, outsources many of tliesc functions .ind concentrates
nn what it docs best. -H
Exhibit B-5 sliciu-s a virtual organizauon in which manageniciit ovtso _
^’f the primarj’ functions of the busmess. The con^ of the orgaiuzannn is a
of exeJunves Their job is to oversee direcdy .ny aetivincs that .ue J-.n-ho^a^
to coordinate relationships with the other organizations t at jj^es in
-d perfom. other erueiai func.ons for the a— fo
Exhibit 13-5 represent those relationships, c>’pica y n rrinrdinaun<^andcon-

managers ,n virmal strmrnres spend mos, of ,he,r

trolling external relations, u-pit^Hy by *ay of computer ne primary
The major ads^tage to the virtual organizauon is j y parts of its
drawWk tn this structure is that it reduces managements control oxer > P

l^ness.
 4.
fWlV
Structure of a Virtual OrganiMtiwi

--------- V
IMipendtfii rctwch t
Atfwtbf
d«v«fepmem j hff
coMuftmj ffnn •t««r
V

1,

( pftctorits / CommUsioned 1
i I

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I
I*
/

The Boundaryless Organizatum

General Electnc^ IICJW Ibrnicr chairman. Jack Welch, coined the tern bOttodaryHess
ofganuauon lo describe his idea of what he wanted GE tn become, Welch wanted to
turn his coinpaJiy into a ‘‘$60 bilhon family grcKcry sh»re.'’^ That is. in spite ol i&
moiKtrnii'i <.ize. he w’anted co eliminate remor/ and boundaries withm Ct
and co break down C-VZC/VM/ barriers between the company and its customers and sup-
plieiv ITie boundaryless organi7ati(>n seeks cr» eliminate the chain of command, have
bmities.s spans of conc-oL and replace deparunents with empowered teams.
GE hasn’t yet achieved this houndaryless state—and probably never will—but it
has made significant progress. So have other companies, such as Ilewlett-Packanl,
AT&T, and MoToroLi. r.ctb take a look at what a boundaryless oTyaniz^tion would
look like and what some linns arc doing to moke it a reality.
By re mewing tw/w/ boundaries, tnanagenient flattens the hierarchy. Statu* and
rank arc ininimired. .And the organizadon looks more like a siJo than a pyTaroid
Cross-hierarchical u.‘anis (which include top executives, middle managers, supervi-
sors, and operative employees), participative decision-making practices, and the use yf
.^60-degree performance appraisals (peers and others aliove and below the employee
evaluate hw or her performance) are examples of what GE doing to break down ver-
tical b<*mndanes.
Functional departments create hotindarics. The wav to reduce thes^
barriers is to replace luiictional departments with crtiss-functional teams and to
nize activities around processes. For instance, «»me AT& I' units are now doing
annual budgets based not on functions or departnicnc* bur on procews such d*
maintenance of a worldwide tckcommunicaTions nerwixk. ^Another w ay juanagcti*®^
can CUI through horizontal barriers is tn use lateral transfers and rotate peo^e inB^
and out of different fuiiuxional areas. ThU approach rums spcciabsLs into gener^bse-
lien tuJIy o^ranonal, the boundaryless orgunizanon also breaks down barn-
ers to rarrnM/cunmniencies and barners created by geography. Globalization. straW'
gic allianc^, customrr-urgantxatjon linbges. and telecomtnuting are aJI exampb'^^
pracTK-v. th« re.lu« „ien,al boundaries. For insranee, firms such :.s \tC CoT
Boeing, and Apple Computer each have strategic alliances or )oini iiarmerships «•'*’
L
 <•
‘

<|o,CTs«rn».n,wnies.TheAe alliances hlurvk .

jn<l an.iiher as enipluyecs work ir,,nrh. z., ‘'’’Cinction l>jtwe«. StriKt
The one .evhntlu "J, we
uon .h nerworked computers -iT »»o*.ndirvles,
i„tnorpan.zanon..l and 1-ople to comniuniJ^X

JVHY Dt) STRLiqTCHEs Dih-FER?

Tfcr orxaJHxoiJon trCrm nij^s dvR’rjbcd so f ——w
sundjrdi/.kxl burcflucnuA to the lrM«s •. ^ged from the hiehlv smiiniMj □

IS. eecooce, JI,., ch

models o( orjr,m..r,nn s^ttnrc. One eauj J he X" •"'= '*««•
^lerJIy sy.x,nyn.ous u,di the l.nreaMracy i„ th n it . ’""’Aamstic model. I,«
(<jan,l,Z2an„, -., hnuced .'nlbrinatit.n ntnv j J h ■‘^»^««»«»i2atwn
and We p.imnpanoii In' low-level nw.nbers n, ‘^c^nward onnwniution).
« the organic mtxld. I hi. nxxlel look, a lot like thX^Z”^'. "
d^ir, uxs tTw.s.h2«75rfhicaJ and <Toss-fiinchanal rH,n, «'gari?ation. h is
a annprehensive informanon network (usinu la J J,' ht’ possesses
as do--ard,, and involves high part,ci(s.di, .n decision
VVIijr jjv the foi trs that dctemnnp wherhMv J
after the ineelianistic model or die oreanic mo.h-P ?!» structured
we-rv now prepared to address tlut X

Strategy-
An organiiadon'b siriiiture is a means to help management achieve its ohjectives.
Since nhjctiives are derived from llic organization's overall straregi’, it is only logical
that strategy and structure shoulil be closely linked. More sueeificallv, structure

EXHIBIT 13-6 Mechanistic versus Organic Structures

Mechanistic structure Orf ante structure

Low horffOAQ/ di^IofeAtiabon

• Hi^ horiional dtfferentiation
Col^a£rorac>or (ho(>^ verr^cal and
• Ihpd hierarchical retationship* horizontal)
• Fixed dudes Add^shle df/tes
Low Ibrmafizaoon X
• ixwaUcKioA
Informil commonkadon
• FOHMI wJ cornmi**®'’®” chtf*««
Oecentndiztd decision
• C«wr»lMd dMiston authoHcX
luchority
 itl ftirt IV The OrganiMdon System
should foJlvw srrftKgy. If management mnk« a mguificani change in its
stTaicgv. the srruccurc will need to be modified to aecninmodate and support th«

, I- . .
Most current strategy framcwi»rk& tocns on three strategy’ dimenMon^—innova-
licMi. cost minimization, and iruiiation—and die stnictural design that works bwc w„h
1 each.'" In whai degree dtws an niganiaacon inaoducc m.n)OT new products or ser-
vices? An uioos-adon strategy does not mean a strategy merely for simple or cosmetic
changes from previous offerings but rather one for ineiiningfril and unique innova-
rions. ()hv ir^usly. not alt tirms pursue mnovatioh. This sttflteg)’ may appropnauty
characteijzc 5,VI Co., but ifs not u sinitegy puniueti b\' the conservative Brilishretail^
AUrks sSpcnccr.
An urganiMTion that is pursuing A ciKt-miiuraization strategy dghily conrroU
costs, refrains from incurring unnecessary innovation or marketing expenses, and cues
prices in selling a Iwic product. ITiis would describe the strategy pursued by Wal-
xMari or the sellers of generic grocery* pnnlucts.
Organ bafions following an inutation strategy try to capitalize on the best iif
bodi of the prenous stnaegics. Thc)- seek to minimize risk and tnaxitmze the oppor-
tunity for profit. I heir strategy’ is to move into new products or new markets oijy
after their xiabiJicy has been proved by innovators. T hey take rhe successful ideas of
innot^ators and copy them. Alanxifacturcrs of mass-marketed fashion gocxis tint an
rip-oJfs ol designer styles lol low tljc uiiitation strategy; I'his label also piob^hly char-
actcrize-s well-known firm.s such as IBM and Crtterpillar. They ewenrially follow their
smaller and more innovative competitors with superior products, but only after their
coenpetitor^ have demonstrated that the marker is there.
So how do we link strategy' and structure? Innovators need the fie.vihility of the
organic structure, while cost minimizers seek rhe efficiency and stability of the
mechanistic srnicTure. Imitators combine die two structures. They use a mcchani?'
tic structure in order to maiiibiin tight controls and low costs in their current ‘activ-
iries» while ;it rhe same time they create (jrganic subunits in which to pursue new
undertakings.

Organization Size
There is considerable evidence to support die notion that an org-anizatiun’s size signif-
icantly affects its structure.^* For instance, large organizations—typically those
employing 2,000 or more people—tend to have more specialization, more depirtmen-
ulization. more vertical levels, and more rules and regulations than do Miiall organiM-
tions. But die relationship isn't linear. Rather, size affects structure at a decreasing
rate. The impact of size becomes less important as an oi^anization e.xpands. VVhy?
Essenrially. once an organization hai^ suound 2,000 employees, it’s already feiriy incch-
adiiicional SCX) employees will not have mneh^impacc. On the Other hani
^ng son cmpioj’ees to an organization that has only 300 inemliers is hkelv to result
ID a shift toward a more nxcchanistic structure.

Technology
The term laMogr refers to how an organiMOon transfers its inputs into output
Every- oqpni/.anon his it least one technnlogv for fonverting financial, human, an^ .'i
physical resources inrn products or services. ITie i^ord Motor Co., for instanct.

1
J

a<>n.Hi«'lly U«s an assembly-line process u, ,„alfv ir.

opisereiiies nu>- t.se a mimber of msinKtion leehnol..^
If.!,ire nivth.Mi, the case analj-sis meUmd. the rxnei ienr '^^-P"Pular rormal
graiW’fd leanung nierhod, and <r. forth, b this^secti.m’ rhe p.-o
^ttures adapt to tiieir reclmofogy show that orpaniMtion
Nutnermts snidies have Iwa.’ wrried out on the teeb„r.l
ship-'- The details nt those studies arc quite coinnicx. st, we’ll
line" and sutntnanze what u. hKn? The e.X.onX STaU.^' '^-
nol-^iies is rhe.r uj r.,.,r„eness. By this tern, we mean d,at t 1"'".“’''”
mward ether roiir.nc or nonroutine activ-ities. The hwmer are dnr^ ’ 1*1."
P,jred anti standardized operatum-S. Nonroutine activities are a“k'*'
indu^-l' varied operations as formnirc restoring, custon, sh..emalci..p?Z?ga.S
W'bal reJariuiisliips have hec, found between technoh^sjy an.l structure’ Althnuph
the relanon^hip is nor i.venvheln.mgly strong, we find that toutuie tasks are assoriaiS
„th taller and more tkpartmenwhz^l su uetutes. The rebuonsh,,, ktween teehnolZ
,„d fontiahr-ation, however, i.s stronger. Studies consistentiv show lotitmcuws to £
associated with the presence of n.le mannals, job descriptions, and other formalized
JiKUUltncaQon.

Environmental L'ncertainly
An orwniiariujb environment is composed of insutunnns or forces thai are outside
dieorganizaiion iind potentially affect the or^^anizarion’s performance. The environ-
ment haj, Hvqi.iired a large following as a key detcrminaiu ofsniicnire.
Why should an organization's structuie be affecced by its ciwironmeot? Because
cfenvininmental unevrtainty. Some organizations fate irlativcly static environments;
other oi^anizations face very* dy^namic emiroiuncnus. Static environments create sig*
nihcanlly less unceminty' for managers than do dynamic ones. .And, since unceruinty
a threat to an organization's effectiveness, manageincnt will try to miniinize it. One
way Io reduce environmental uncertainty’ is through adjustments to the urganizadon's
stmcturc.^^
There is sulisraiuial evidence that relates tlic degree nt environmental uneer-
uinty to different structural arrangements. Essentially, the more dynamic and nnccr-
cain thcenvironineiii, the greater rhe need for flexibility. Hence, the organic stnicturc
will lead to higher .irganranniiul effectiveness. Conversely, in stable and predieiable
ernironiiienth. the mechanisric fomi will be the structure of clmicc

ORGANIZATION STRUCTURE
AND EMPLOYEE BEHAVIOR
''f '^tened this chapter by implying that an organizations ’’^‘^'’^“'^5 (.Jects
fuund cfifects on its members. In this section, 've direcrlj assess iust wlia

review of the evidence linking organization Not

-^nct and satisfaction leads to a pretty cleur conclusion-yon
"w-one prefers the freedom and flexibility ‘’^™^^“rdized and ambiguity is
"**» pruductive and satisfied when work risks arc sundardue
mWmtad-
vniploycc pretcrenccs R.r work .pec.hz.Uon, span 4

m.lK..t.s that ..ri- wnuil.utes to higha,

ZJSX^S2,S;»J=S
^we noted pre-vSousIv. work
.nd ,U H- of i..l. »Us pc^ndo.
speciabzadon is tu.t an unen.hng source of higher
nnKluctiviry. Pn>ble..« start u. surface, and pn>ducnv„y begins to suffer, when the
human disXonotnio of doing repetitive and narrow tasks overtake rhe economies of
sDeciah7atwin V the wdilloruc h.'i* (xx-oiuc more highly tdufaud and deMfous of
}ol^ lhat are imrinsicalh’ rcwanling, the point at which prudueovin begins rn decline
seems co be reached more quickly than in decades pasr.
Uiidouhtedly people today arc less tolerant of overly specialized |ohs dm
were Their parents or grandparents, but ii would be naive to ignore the reality that
there is still a segment of the workforce that prefers the routine and repetitiveness of
highly specialized lobs. Some individuals want work that makes minimal intellectual
demands and provides the security of rounne. For these people, high work special-
ization is a source of iob sorisfacrinn. The empirical qucsiitm, ofcoiitsc, is whether
this croup represents two percent of rhe workforce or fifty-two jxjrtxjnt, (oven that
there is some srif-srkcrion o|>eracing ih I he choice of Ciireers, w c might conclude
that iicgaiivc liehaviural outcomes from higit sfiecialization urc most likely to sur-
in professional jobs cKcupicd by individuals with high needs for personal
growth and diversity;
A rG\’iew of the research indicates that it is probabk safe to say there is no evi-
dence to support a l elationship between fp/tu nf fonftvl and employee perfonnancc.Ii
is intuirively attractive to argue that large spans lend to higher employee perfor-
mance because they pi-ovide more disStant superv’ision and more (jpponuniiy for per-
sonal imuanve» but the research fails to support this luuiott At this point, it is
impt-)s«ble to stare that any particular span of control is best for producing high per-
formance or high satisfaction among subordinates. I'hc rca.son is, again, prolwbly
individual differences. Sonic people like to Iw left alone, whereas others prefer the
securin' of a Ixiss who is quickly available at all dmes. Several of the contingency
theories of leadership discussed in Chapter lU would lead us to expcci factors .such
a.s empioyees experience and abilities and the degree of structure in their tasks to
explain when wide or narrow spans of coinrol are likely to contribute lo their per-
formance and fob satisfaction.
VVe find fairly so'ong evidence linking ee/fn-f/liztrfm? and job satisfaciian. In g^-
cral, orgaruMUons diat are less centralized have a greater amount of panidpative
dwtsion mnkmg. And the cvidvin r suggests that participative decision making is
itivel> related in job satisfaction. Bur. again, individual ditfcn^nces surface. The rcl>-
UiKiship beiMvcn dccentraliz-ition and «usfacrinn is strongest with emplov.xs who
Sv r"individiuls have little c-onf.denc-e in thei^alxboW
held soldVres'i^Libk
individual conclusion: lb maximize emplovev perfiiniiaiux ami sausfact**
 4i

J'"
IMPLICATIONS FOR MANAGERS

An .<gani}Mhr«v iiucrnal stnicurt .■ .

,„g v.npb,y.v (H=h«vi..r. Th,, ’’'d Pedi«
,enKt..r.).t M.und,.ps ,n .hic b p^, and group X
anim-fv' .md hch.mor, '’3*e an important lieanne™, ,k”
Whafs th. (tnsis for the arg.„„ent tha.
,,RJO and hchav.or? Uetause an organizarrnnV'i^^*' ««'>’nh art-
c(ard<i-5 r.lanonshi|K, it shap^ '■‘^‘'“ces anihigutty and
them IO hiL’^ci kvcL of pcrfonnance. "" ^cilimtcs and m/Xat«
Of course, sirucnire SIM) vi.nstrain.4 i
and voi.fioh «’h.ir they do. For «a,„pie orv-SK
levels ol tonnafization an.f specialization' serL ..T’”'" high
mend. Iimin-d ■lelegad.jn ofaoib.jrjn' and narr d’e chain ofcom-
ees huie autononty. Concrols in sud,'
tend to van- within a narrow range. In contrasL ort.\n” u *iM
arotnitl Innituf specialization, }o«- formajiz n’ion *tructitred
lilce provide employees greater freedom
greauT bch^Mnral diversity; • I be characterized by
Technology
and Work Design
A<t«r studying this chapter, you should be ableW
1. Explain the three key elernents in process reengineefing
2. Contrast mass productiori and rrrdS$ custemizatton
3. Identrfy the cbaHenges to molivatlng employees In e-orgamzations
4. Explain how e-organizstions are rewriting the roles ot
5. Pescnbe the job characteristics mode)
6. Contrast the social niorwation-processing model with the job characteristics model
7. Oesaibe how a [ob can be enriched
S. Compare the advantages and disadvantages of flextiime
9. OesCTibe why telecommuting has grown in popularity

<^chnoli)gy is completely changing most organixarions. In this chapter, wo fcxnis

T on bow lechnolngics of operacioii*? and infnrmarion are influencing Tnanagemcot

and work processes, and how managers can design folis and work schedules to man*
mizc employee perfurmance.

TECHNOLOGY IN THE WORKPLACE

Wc inuodxKtd the ww in v!it ptxvwnis iHscUSsion jp
cures dilTer. We said it was how an organization transfers its inputs into
recent years, the tenn hus become widely used by economist, mun^^gurs, cons
and l)usine$s analysts ro describe machinery and equipment that use sop
electronics and computers to produce thoMi outputs.
The common theme among new rcchnok»gies in the workplace is
so rule machinery ftjr human labor in iranslorming inputs into outputs. This
1^** Chapter 14
,, .nd Werk
Re..Aitit>n in the niiiMSOih. F.„ ''"fe the hid«stri»l
,i)e h> .ntn.luve .nu hnnica! I.H.ins ,h«» eoul 1 . dinged
more elu-..,.ly ilr.ni w.,s ,x.sMhk when ,he ? ''7''
j, h» l«en tlu' c..in,>utcnr.rttinn ol cquipuH-nt and n. t '"‘lividiiak But
cenltiri that has been the pi inx- ninvcr in reshaninir ijuHrtcr-
„Jlcr inuehiiies. for cKiiinjile. have i-cplacud tens of .1? ’ ""'■ki.latf. Aiih.mated
banks. Nineit -einht perve.u ofd.e spot welds „n new |.\2rr “ '
n<H by people Many cars now cn.e e.|n,pped wi h < nT’'T
„ke only secon.ls lo d.agiuxx- pn.hleins that used m „L_ eoinpuu-rs that
nose. IBA1 has buili a plant in Austin, 3exas rUai * i v^haiuus hours to diag-
nut the help of.»single worker. Kvei ything h ,,,,, ih^. j',7" with-
to the final pacing of finished pnidnets is completely autoinauT''"
ThK book IS concerned wHh the l>e-havior of people at work: No coverage of this
today, wotild be complete w.thon, d.set.ssing how recent advances tn techno
.^,are J.ngmg the workplace and .rtecting the work lives of employees. In thlsX
t„M,, we II look at three spembe issues related to teehnologv- and work. These ire con-
tinuous iinpnn einenc processes, process reengineering, and mass enston.iaarion.

Continuous Improvement Processes

In Chapter I. we descrilwl qualih' management as seeking the eonstant amuviient of
customer satislaction through the eonriminus improvement of all organizational
processes. This search tor conn minus improvemein recognizes that isn't gotki
and that even excellent perfbimance can, and should, he improved upon. For
instance. 3 99.9 percent error-(rce perfonnance sounds like a high standard of excel-
lence. However it doesn't sound so great when you realise that this standard would
result in the L .S. Post Office losing 2,000 pieces of mail an hour. U.S. doctors per-
fonning ?00 incorrect surgical procedures each week, or two plane crashes a day at
O'Hare Airport in Chicago!^
Quality management progrAins seek to achieve continuous process improve-
menu so that variahitiu’ is constantly reduced. WTten you eliminate variations, you
increase the uniformity of the product or service. Increasing uniformity, in turn,
results in lower costs and higher qualirv. For instance. Advanced hiltration Sy^wms
Inc., of Champaign, Illinois, cut the number of product defeexs-as detennined hy a
customer qu.ility audit—from 26..^ per 1.000 units to 0 over a 4-year penod. Uiirmg
that same period, monthly unit production tripled and the num er o wor ers
declined bv 20 percent.
tens of thousands of organizations introduce J’’
men(, how will employees be affected? They will no longer c .1: e o 1,,creased
previous accomplishments and successes. So some peop c may exp
wress friHn J work climate that no longer accepts comp constant tension,
with no finish line can never be won--a situatioi in,ieThfuif eonflia from
lju.s tension may be positive for the organization ,^prov
<-haptcr 12?X hut the pressures from an niost significant impli-
<’an tTcate anxiety and stress in some emphnyes. I ni > source for
for cmphi’yees is that management will look to ' part and parcel
ideas. Employee involvement programs.

T
RBftW The Organize tinn Sytcein
,.f coniinuoas improvement. Empowered work teams who have hands-,xi invok,. 1
ment in |jroce« impr.wement, for iiisunce. aix widely used m orgamzattom thai '
inrr/wluced quality pnHtrams.

Process Reengineering
We abo intnxJuced prrxess reengincCTing in Chapter I. Wc described it as considen»
bt>w > r>u would do thinp if you could start from scratch, llie tenn reenginemng CXMI^
from the pnicess of taking apart an electronic product and designing a better version.
Michael f hnvner applied die term to organizarion.^. UTicn he found companies
computers simply to lutomate outdated processes, rather than Tinding hjndamentaUy
better ways of doing things, he realized that the principles of reenpneering could
applied to business. So, as applied to orgamMOuns process reengineering means th®
management should start w’ith a dean sheet ol paper—rethinking and rtdtsignin^
those processes by which the organization creates value and does work and ridding
itself of operations that have become anoquated.-

Key Elements Three key elements of process reengineering are idencHying an

organization \ dis lined vc competencies, assessing core processes, and reorganizing
horizontally by process. An organization’s disnncdvc competencies define what it«
that the organization docs better than its competition. Examples might include better
store locations, a more efficient distribution system, higiier-quafitt* products, more-
knowledgeable sales personnel, or superior technical support Dell ('.oiuputer, for
instance, differentiates itself from its competitors by emphasizing high-quality hard-
ware, comprehensive service and technical support, and low prices. VA’hy is idendfiing
distinctive competencies so important? Because it guides decisions regarding what
activities are crucial to the organization’s success.
Alanageinenr also needs to assess the core processes chat clearly add value to the
organization’s distinctive competencies. These are the processes that transform mate-
rials, capital, information, and labor into pniducts and services that the castomer val-
ues. UTien the organization is viewed as a series of processes, riuigiug from strategic
planning to after-sales curunner support, management can determine to what degree
each adds value. Not surpri .singly, this process-value analysis typically uncovers a lot of
activities drat add little or nothing of value and w’hose only ju.stification is Sve’vc
always done it this way.”
Process reengineering requires management to reorganize around horizontal
piYiccsses. This means using cross-functional and self-man aged teams. It means focus-
ing on processes rather than functiorw. So, for instance, rhe vice president of market-
ing might become the “process owner of finding and keeping customers.Ii
means cutting out levels of middle manageinein. Hammer points out, “Managers
are not value-added. A customer never huy-s a product because of the caliber of man-
agement. Management is, by definition, indirect So if possible, less is better. One of
the gcwls of reengineering is to minimize the necessary amount of management.*^
Implications for Employees Process reengineering has been popular since
early 1990s. Almost all major companies in the United States, .Asia, and Europe
reengineered al least some of their processes. 1 he result has been that )oR
have loM their jolw. Staff support jobs, especially middle managers, have been partied'
larly vulnerable to process reengineering efforts. So, loo, have clerical jabs in seP'k^
industriuH.
 pniployces who keep their jobs after proves ‘^•Moor .nd Wwk Dwjp,
,hat they aren-t the same jobs. These new k'k W«'>X fo«n<i
j^Juding niore nncracon with eusromer, antSpp of ski,h.
^,n«hihncs, and htgh. r pay. Ilowexxr. the dlec ?’ '•‘’’’"""’f'-‘"<^*<1
bnplement process recngi.u-enng is usually toud, oL '* “^cs ,o
^ruinr) :>nx.cn ass.K.a.ed wid, taking on new
It^HSuhhshed work pracut^s and formal social network

jklass Customization

The Tom Clancy or Stephen King paperbacks vuu find „ i i

printed on huge offret presses, then stored in hanr-a.-size waXh^''"'"
du,T^ f« bookstores m fleets <if trucks. The nm-ek are m.
pn!K^ of several-hnndrcl thousand <x,pies Rot 7'’’
print rtins to kee,» prodiH tion costs down. these large

called Print on Demand, allosvs Ixaoks to be pnxlucc^and sold in'snul' qumdi^'’

even one at a nme-aimost mstantly. Publishers h„ve only to digitice a hooks contents
and .store it m a centralized computer. Then, when t.r.lered by a customer a sinde
h.gh-iech prinnng-and-binding machine goes into action, creatmg a slick hiX-
qualilv paperback These high-tccli machines can be Icxated in hewkstores allowinB a
store to custoni-print a book for a customer in sixty seconds oi less.
From the days of Henry Ford through the late 1990s, prtxhieoon cHieienaes
demanded mass production. Firms used division of labor, standardiz.arion, and auto-
mated processes to manufacture producis in large quantities- Eennomies of scale
favored large quandcics because that i-educed costs. Industry after industry relied on
ma«-prndi(Ctii)n systems to minimize costs. Ford’s Model T, .McDon.ald's, and
Levittown stand as icons lo mass produennn.
Neu technologies such as computer-aided design and manufacturing
(CAD/CAM). however, are undermining the economies of mass production. And
they're making possible mass customization like Print On Demand. Mass cus-
toinizarion encompasses production pniccssrs tbsu are flexible enough to create prod-
tKts and sendees that are individually lajlored to indiindual cuscoincrs. 1 he hiture of
production manufacturing is one of mass custoroizahon. Some products, such as pack-
aged ft>ods, will probably continue to be made using traditional inass-producd^
mcthixls. Bur for products for whjch custoniei^ wanr custom features firms wdl^
converting to '*b«iId to order” systems. And it HCCIIIS ibnc custumers are mcrcasmgty
Peking pixxlutrti that have been configured for their particular needs?
^^’rp. and l^vi Strauss are two examples of firms that have success u \ em ra i
niass ciistoiiiization. .
Ca.se is a huge farm and constniciion equipment mauu ‘
^ned all its products to mass customization. For
^^gnujn farm tractors arc now made exclusively to order. Lnder its r ih'ev had
'n had u. sele.1 from the model, and options chat a dealer had
*■*116 months to get the one they wanted. Now customiKd
*'pti<jns such as engine, tires and power tram. /
'^■’w in 5 to 6 weeks. jjpd a pair that is exactly
Iwrvi makes IW stvlcs of jeans. Still, many eiustoni-fitteJ pair,
**« they’re hMkinp fok No proldeml Uvi cun provide them wiffi
 1 Mrt IV The OnntcMMn Sysivm
choosina from 3 k.ic inoriels, 10 5 kg .nd 2 types of fly. VVTuW
“made to order" jean, « hit inoi'e (al^mt S55), l.evi uses computer technology h, '
Standardize options and v»it tosu. j.
Mass nisuHnixatinn oficrx advantage^i to both customers and manufacturer^
Customer don t have co n»npromise. I hey tan have the products they want, tailored
to their individud tastc.s and needs. For manufacturers, they create more sansfied cu&.
tomer-? whiie. nr the wiic time, incrcaMng pnxiuction effiucucy. c-ustomitatiun
res-ults in litdc or no work-in-progress or ftni.sheri-gcxnls inventories and iv.iob^obtc
pixjductt gaihcrinc duHt on shelves or in showrooms, and it requires less working cap.
iui. Case says, tor instniicc, that merely by reducing im entories of its finished UHUm
by more than half, its fiitviug between SL.^00 and $2,000 per marhine.
J he downside of iiuss customization is that it creates increased coordination
demands on tnanagemenu And it typically requires cinployecs to go through signifb
cant retmining. Mass <'usr(>mi7.ation usually requires reengineering of processes, and
reorganizing w ork ai’Ound teams to increase flexibility.

ORGANIZATIONS BEHAVIOR IN AN E WORLD

area of technology is changing organizations more than electronic technology,
t or insiAiK f, rerms like and i -husiftexf have hcconic a standard parr of die
current lexicon. In this scciicni, we’ll define an e-organiration and die affect it is liv-
ing on both iiuhviduai and group behavior in rhe workplace.

What’s on £-Organist ion?

E-<ommerve refers to the Hales side of electronic business. V\Tien \*ou read about rl*
tremendous number of people •ndio arc shopping on the Jnierner; and how businesses
can set up Web sites where thex’ sell gtHuK. conduct transacuons, get paid, and fulfill
orders, you’re hearing about e-coirunerce. In contrast, e-business is the full breadth ert

activities included in a SUCCCHSIVI Internet-based enterprise, h includes developing

stracegicH lor running Internct-based companies; improving crmirnunicmon fichvccn

employees, suppliers, and customers; and collaborating with partners to electronically
coordinate <lesign and prixluctiou. As such, e-coni inc ice is really a subset of e-biisiness.

And the Term c-ui^ruzatiun (e-orgs) merely refers co applicaUoits of e-busiocss OMH
cepcs IO all oi^anizauons. E-orgs include not only Inismess firms, hut also hospitals,
sthfxiis, museuim. govemment agencies, and the military. For rnstaTice, the Intenial
Rex’cnuc Service is an t-orgauization h ecu use it now provides access to taxpayers over
the Internet.
ITie best way to understand the e-oipmizarion concept is to Itok at in* three
underlying coinpunencs^die Internet, iiirraneTs, and extranets. The Internet is «
worldwide nework of interconnected uunpurers; intranets arc an organizations
private Internet; and extranets are cjctcnded intranets, accessible onlv to selected
employees and authorized outsiders. As Exhibit 14-1 illustrates, an e-org is defined
by the degree to which it uses global (Inurnct) and pnvauj (inu anet and extranet!
network linkages Type .Vs are traditional ozonizations such as small retailers and
service firms. Most organizations today fall into this categor)’. Type B’s are contem*
•J pirary organiutiocs with heavy reliance on intranets and extranets. Type C’s arc
(Host small e-cmnmerce firma. Anil finally, Type D’s are full e-orgs. I’hey've eoflt^
•f
 1■■v4w?as
iXHWIT 14-1 What Defines an E-Otganizatian?
il
OufMtl* 'RxhwIonrvMl^tMkn^

r
High

Intranet
and
extran
et
Irnfca
ge^

n
Lo* High ’
Internet linkages

Degree of Mrvnest

None —I I Full
0
4
U
O

-[■
A

pfctck incecratcd global aad private networks. Type D’s would incktde such firms as
cBay> Cisco Si-stems, ^\mazon.com, and Wai-Man. Note that as an organixatinn
mmcs kom a Tj-pe A toward a lype D, it increases the degree to which it takes on
e-ortf pfoperue^. ,
The following discussion looks at how e-organii^»fions affect OTpbyee behav.
k.r. But Aince e^,rgs. in acrualin; encompass a range of elecmnuc teehnolngy applica-
tions. our ohsersadcHU and predicdoiis need to be qualified: 1 he more aiv
lion uses global and prh"3te newtwi linkages, the more our comments a u
*111 be applicable to its employees.

Selected Implications for Individual Sc ' on how e-orgs wiB

We e-nitd develop a full chapter or l.x>k at i«st two selected
affect mdisSdual behavior. Given our space
individual topics-niodvalion and ethics. ..nployces in c-organita-
A,= .b.e -1“"“
nons? rhe answer appears to be their work cHort an
susceptible to distractions that can employees m e-or J j^„jence on
dunivin. In addition, techmeal a P thcr different com-
that make them ven' matUeuble. <ui‘l '"^^•^yons frequently base
these »kdk. .\s a result, traditional orgaiu
pemauun cxpectau.ms dun do thetr peers «
 MrtIV The OqBtticanm System

rupnon^ by wllw^es pc . surfing the Ncu pl:ivintf online gan^ W

*«*• ■•cylx.T-fft.irs," and searching
S online. Some of the n.n« ns.ted «U-s ix=o^.lc access tru.n uork. tor instance, .re
il>cWeather(;hani>d.Anuz<>n.ioin,3ndcbav
•rhe averatre L’.S. employee with Net access is spending VII minutes each day
visiring sites unrelated to h.s or her job!’ Recent e-som.ues mdicate that Ml t., 40 per.
cent oHnst worker jM-rxkictivuy K due solely hi abcrloahng; and this CAberloafing
LosiiriK U.S. einplovers alone SS4 billion a year.''
If die work itself isn't in wresting or ereaccs exeessive stress, employees arc likely
lo be motivated to do Munetliuig else. If they have easy siccess ro the Inwmer, that
•'Mimetbing else’' is increasingly using the Net as a diversion, lhe solution to this
problem includes making iobs more interesting to employees, providing fonnal breaks
ro overcome monotony, and csrablishing clear guidelines so emplovces kjiow what
online behaviors are expecred. Many employers arc also installing Web-monitoring
snfnvarc, aldiougb tliere is evidence that such eHiirts can undermine trust in the organ-
izadon and adversely affect emplo^’ee morale.’^
Etensity, u Virginia-ba.sed Web-consulting and services firm, has a motivatiid
and committed workforce.^’ Its turnover rale is only 5 percent a year, about 15 points
below the industry* average. And what is Eiensit)’ doing to sdinubre and keep its peo-
ple? Quite a lot actually. 'Ehc companyHut Wheels progi*anK for instance, give
employees up lu $400 a month to pay for a new car; and another progi**anb t*alled Rabe
the Roof, gives employees $10,000 toward a new home,
TtV difficult for c-organizaiions to find and keep technical and professional
employees. So many have implemented an extensive list of attractive incentives and
benefits rarely seen by nonmanagerial employees in typical organizations: fur
instance, signing bonuses, .stock options, oii-s, free health-club memberships, full-time
onsite cnnctei^es. and cell phone bill subsidies.
l'lu.*se incentives and benefits may benefit their rccipicnth but there arc down-
sides. One is the effect these rewards b^vc on those who don’t get them. The other is
the increasing pnihlem created by stock options. Specifically, while they l<x>k wry
gtxxl when a finn is growing and the stock market looks favorably on the couipany’s
future, stock options can demotivate employees when condirions reverse.
The potential bjr perceived inequities is very’ high among employees in
Internet-based organizations, There are often glaring discrepancies between the
rewards provided to hard-ro-hirc empluyees—particularly software designers and
engineers- aud other eiujiloyces. ITiis tTeates llic potciiiial for dcniouvaiing rlxi*
who feci they’re Iwing inequitably treated. In addidon, there is the problem of inter-
firm comparisons. How would you feel if you w'ere nuking $>0,b0<) a year bursa*
someone with similar experietK'v, age, and qualiiiuirions nuking $10 nd Ilion beciuse
she just happened u> join a firn chat gave out stock options and now her company h^-'’
gone public, nuking those options meredihk valuable? The cieaUon ofiaterfnD
inequities has tended co create a wanderlust mentality aniung many e-org employees,
continually chasing the next wealth-creating oppuriuniry.
The implosion of dot-ei>m ibtoc.ks in 3lXK) and 3001 illustrates that the use
stuck options as motivators is a two-way sued. Many e-organiMtions envourJg^
hanf-to-hire employees tn give up a large salary in exchange fer stock oprinns. Thb

X
1
 fin® ’’PdoM seemed to g^ only UD R k 'W ork Desigr.
n,jn>-sp’ck opuons become ^vonhless.'^ For individnd i ■ ‘‘"’P.
firms nwinly for the pos.Mbiliiy of getting rich through *b ’■‘‘fi
«in he J powcdyl denionvjtor. ® ^phons» a declining mar-
Ethics Elcctn.nic surveillance of employees bv emninr.
orga.iiMfi'^nS desire for control againsr an cmpl.'n-ec’s P’« «»
„:nt of increasingly sophisneared surveiUanceTo^\^” ^'T'
ddeinnia r.f hou lar an organization should go m momiorins the lA' •”
ees who do their work on compurers?^ >ehavior of employ-
for iiiswnce, rhe Web activity of every otic of Xerox’s 92 nnn HT^KI
Xerox fired 40 ^ ns employees because they were caught in die act of surfing forbhl
den Web sites. The companys monitoring softu^are rcoirded the unnuthorizxdviril
w shopping and pornography sties, and every minute they h,,<l spent at those sites »*
b Xemv unique t No, A recent survey by the .Amcricat, aMaiugemeni Associadon
fcund that more than 50 percent of employers monitored their employees’ phone
calls, computer hies, or e-mail messages?
Employers argue that they need surveillance a»ntrol$. These controls allow
them to make sure employees are working and not goofing off and that employees are
not distribuung organization wcrch and to protect the organization against employ-
ee‘s who might create a hostile environment for women or members of nunoriry
groups.
rhe surveillance dilemma is exacerbated by' the blurring of workplace parame-
ters. There seems to be little dispute that employers have the right to monitor
employees at work, when using the organization's equipment, and when employees
know they are being watched. But as home life and work life are increasingly inter-
mingled—for instance, employees doing job-related work at home rather than at the
office—the ethics and legality of surveillance is less dear.

Selected Implications for Group Behavior

b this section, w'e will show how issues such as deosion making, communicauon,
leadership, and organizational politics take on a different look and inij*orunc*c in
e-organization$.
Decision Making The iradition.il approach taken in OB «hcn J®"'"®"
making needs to be modified for e-organizarions. Exactly what those wodificaoons
should he are not yet fuUy clear. However, wc offer wo protections.
First, individual deckn-making models are likely to
Iwe, E-nrganizatitins are typically team-based coinmiiinties. So gToi j.

•nodels will offer greater relevance. . .naVine—which dominate

Second, the thoughtfuL rational models of de J

w management literature (see pages 70-. >)— I6 c,,,.ppss iroes co finns tliat
There arc no proven business models tor e-orgamz^tio^^- • gather data
^alue experimenution-thase that utilize ei^r
quickly and assimilate it and that can accept fail me an decision^ in starch
E-organuations don’t have the luiniry o trying co limited information
<rf perfection. E-organizations make decisions with often very
F^rtiv The OgflniMCinn System ’n
. I, -i^„vfrarmflltinffmLstjlM.-s.l>eci«ionsinc-<jrganizjitionsareinacia*^
w ± tos bei,?g «.nu..u.lly nu.difi«l »nd even dtscardrd. And ro.. ;
Je ec“on pmgran.s nrc dally u>ek« hccausu kw ,.f the deas.ons that
"n k encountered before. So no. only do dec.s.ons .n e-orgs need to b,
Lk fas,, thev have to be nude ba«d on hnle prev.ou. expenenee. 1 his. of enurv,
the pn>l«bi1ity of errors and the need to be able to recover qu.eldy from nds-
takes and move on.

Communkadon E-orpanizatioiib arc icwruing the ruk‘> oJ communication.

Because they’re designed around comprehensive, integrated infornuuon mjtwopks,
tradmonal hierarchical levels no longer <onsinin commumcacon L-organiMfions
allow, even encourage, individuals to coiiununiene directly without going through
channels. KnxpJnyees can communicate instantly anytime, with anyone, anywhere.
These open eomnninicadon systems break down historical stauis hierarchies, lliey
make obsolete or revise interpersonal coin muni cation concepts such as the distinction
between formal and informal networks, nonverbal communication, and filtering.
They also redefine how activities such as meerings, negotiations, supcnnsion, arid
“water conler’’ talk are conducted. For instance, virtual meetings allow people in geo-
graphically dispersed localions to meet regularly. Moreover, its now easier fur
employees in San Francisco and Singapore to share company gossip than those offline
employees who work two cubicles apart. AIR! employees in u number ot industries
even have Web sites that are becoming electronic grapevines.’' Young lawj’ers are
going to w'ww. greedy associate 5-com to gripe about working conditions and pay; truck-
ers arc comparing rigs and routes on www.truckinlife.com, and flight attendants share
gossip at w'wwJnsidctheweb.com.
The downside of this open niinmunicatinn netw ork is conimunkatinn overload.
A recent poll fiiund that the average U.S. worker receives five phone calls, 36 e-mails,
18 pieces of mail, and 18 in-house memos daily.”* He or she also reads 13 Post-It ines*
sages, 14 foxes, and listen* tn 23 voice mail or cell phone messages. *rhesc frequent
incoming cnnununicirion interruptions cost employees valuable rime, erode their
ability to coiucntrare, and can negatively effect their work pnxlucrivity.

Leadership Is leadership in an c-organization different from char in a rradirional

organization? Business executives who’ve worked in both think there is. They’tend to
focus on three differences: the speed at which they' have to make decision.*, the impor-
tance nt maintaining flexibilirv', and need to create a vision of the future.
Alanagers in all organizations never have all the data they M*ant when making
decisions. Bur the problem is much w(»rse in c-organinations. The world is moving
(luickly and the comiRitirion is intense. Meg Whitman, the president and CEO at
eBay says, “We're growing at 40 percent to 50 percent per quarter. J hai pace
a >soluteiy changes dw leadership chaUenge: Everv* three mon dis we l>e<x>mc a cJiffer*
ent company In one year we went from .30 employees lo 140, and from 100,000 reg-
istered users to 2.2 million. At Hasbro (where she previously had been an execudvel*
we would sei a yearlong strategy, and then we would simply execute against it. At eBay,
we constantly revisit die strategy—and revise the tactics,'”''
m ’'****'” themselves as spnnters and their contemporaries in
online businesses as long-distance runners. They frequently inject the terffl
n tmtt tme a reference lo a rapidly speeded up working environment, ‘tvcry I*"
uusmess) leader today has to unlearn one lesson that was drilled miu each QIMl4
 gAthcT cbta so th« yo. .a„ <n„,J,r,,| VV»3.
i^a-n.et urne. - You can^ d,, du^
"" In □a«li"‘"> to >pcei1, k-aikrs in c-orgs n^ud hiH, fl
„jl with the ..i>s and downs. I hvy ntx-.l u. ahlL, They have n. be .bk
something doesn’t work ThT^'I?'’’'* " ‘”K»n-
^ocxwi MaA t-iiban. eofounikr of Broadj-ast^j^jj^ anmlifi**' «peh-
Jirtvcl- «c thoiigin ad^ erasing would he the core of<S **'” “"■hen
.Q th'waht that the way to define our network was to disn-T"”^
'Lcn- "e w ere wrong. V\e\e had to recaWirate again
^Sing « ■" ’ '>?ain-and we’U have to
The fininder of PnceLme.eom saw, "Forget about o-u ’
„,tiH;usc<»‘St-"’'h on rhe ne« generation of pn>blen,s
Ldrrship Jnd •> deep understanding of how teehtioiogv is uoin/r^ requires vi^aty

-n-' I-'- <"n-»,„™„l 0,,hei„J„,4„f„ppL’i'Ji.'.S

dw»nnnuities—jnd they chtxk tlut map constajidy

Visionary leadership is undoubtedly iinpomnt ’in even- organization But in a
hiperkinetic envin.iunent, people require more from the.r leaders The rule noli
tie, and agulatrons tliat ehar.ietcnze more traditional organizatmns pronde’di^-
ti.«i and reduee lUKcnainty for employees. Such formaln.cd guidelines don’t npically
exist in e-orgs, ami it falls on e-lcaders to provide direction through their vision.
Polirirt and Networking recognizes the political nature tif organizatiotes, the
nJe that poiirics pl.iy in decision making, and the impurtaiue nf nccviorLhig m devel-
iiping wmuis both within and ou&ide an i>rgunization. But preliininan* indicators
suggest that efteetivv politicking and nensorking arc different in c-orgs than in the
tTKre tradtrional (.iffline organization,
In traditional organizutions, effective politicians keep themselves \isiWe, utilize
wifM\.*ssion nianagcmcnt techniques, and partiidpatc in activines that will put them in
dF>sc rontact with inlluendnl people. But these are essentially face-to-fiu'c activities
dut amn’t like I v m be as effective in vorganizations. E-puliticians iirc likely tu rely
much mure on cyber-schmoozing ' ia the electronic graiwvine. Internet chat nxims
niesMge Kxirds, tor instance. o)>en up opponunirics to meet and talk with people
*110 an help employees he more effective in their iohs and their careers,
Cvbcr-vxhmmJzimf isn’t likelv to rvpbux the water e<M.ler, cxiraii part), uniwr-
alumni get-togethe.^, or trade shows as places to make contacts and hwld political
‘U'c'. But online networking will hecome increasingly popular and etlecuve asa sup-
l^rment to more traditional jiolitical channels.

'^«ll E-Orgs Redefine Interpersonal Relationships?

has redefined »..replace P-*’''"--nSX
^»re |„„ge‘r earns,rarnenl be ,nne p aee m d.r.np .hen
‘^iJicadons of these c-org. to imenu rsoiw are MK-nding more time
•'*'’?rt IS substantive e\ idencx* th;U pe<‘plv‘ gx
tixlai than ju-st a few wars ago. f or instani_ , predirtnl
*?' 'ohne 4.i hour, ,scr wwk. In Cmvenity stml>
« ’ hnurs..’^ I’here is also preliminary t„„e the) sjwnd in real-hfe
.ha, .he n.„e P-l-'.. M'*?;''^.^^^ar.e, of m^nla' users
with friends and tamily
PartrVThe Oi^niMcion System Z
report that they now arc spending IMS time attending social actnitics and talking
rheph<.ne to fricn<ls an<l family; and 13 percent reporreti rcduee.l face-to-face
interattioni.’'^ Stanford scudy^ co-audiorh, in het, exprcs^jcd eoneern that
the Intenift could beeome the ultimate isolating technology, promoting individual
behavior over rnniTnunit)- involvement.
Its far too eariv in the development of rhe digital age to conclude that
Internet will undennine a sense of srxnal community. But it clearly creates new- way^
interact with w'oA colleagues. Employ-ces will increasingly be working on teams
people they’ve never mtl and may never meet. Theyll develop -office” friendships
wdth jwople thousands of miles away. And ‘^good interpersonal skills” msjy increa&mgly
mean not only the ability ro interact effei-hvely with jx-opk lace to face, but ju^
nielude the skills lo comruLUiivate w'annth, enwuon, trust, and leadership through
written words on a computer screen.

WORK DESIGN
TTie way that tasks are combined to create individual jobs ha5 a direct influence on
employee pcrfoniuncc and sarisfecrion. In this secdon, V’e'll look at task characieru-
Qcs theories, work redesign, and work schedule options.

Ta.^k Characteristics'Ph cories

Most of us acknowledge tliesc two face: (l)Jobs are different, and (2) some art more
interesting and challenging than others. These fect^ have not gone unnoticed by OB
researchers. They have responded by developing task characteristics theories that seek
to identify task characteristics of jobs, how* these characteristics are combined to form
different jobs, and the relationship of these task characteristics to employee motiva-
tion, satisfection, and performance. In this section we’ll review die two most itnjior-
tant theories—the job characferistics model and the social infrirmation-proccsang
model.

The Job Characteristics Model The dominant framework today for definite ta^?k
characreristics and understanding their relationship to employee motivation, perfur-
mance, and satisfaction is J. Richard Hackman and Greg Oldham’s job characteris-

tics model OCM)."'

According to dieJCZM, any job can be described in terms of five core job dimen-
sions, defined as follows:

SkifJ vatrefy^ Ihe degree to which the job requires a varieh’ of different aetivides so
the worker can use □ niimbef of different skills and talent
IM ttiifatify: I "he degree to which die job requires completion of a whole and idend-
fiable piece of work

3. 1 he tlegrce u> which the has a aibstantiol impact on rhe lives or

work of other people

4. degree to which the joh provides subsmbal freedom, independence-

and dxstretion to the individual in sehediilmg die work and in determining the
cedures to be used in carqnng it out
5. degree to which carr^nne out the work aniviefes required fav th®
rwuhs m the individual’s obuining direct and ckar information about the effeco*'
new of his or her pcrfonnance
 •*
I•
Eihifni H-J offers cxamnl-e c ‘^Ww 14 r«4« j Eksign
Janmeristic, "ariple, ftch„oJoBy «nd Work
E»h.b,t 14. J presents the ,ot,“'I l'»w f.>r each

d,nu-n«ons-*k,J/ t~,rinv. task ul,.., •?. >

^^ningtul 7-hat is. if these threeS f.r« three

mnniihent will v.cnv ,hi- jol. as hein^ exist b a job
tmJ, tlur job- rhjt {^,ssvs>. ,t(,rono„,v p valuable L
responstb.lm; for the l esvfts and rha! ff a
ioow how cttei-rively he or she is .-rfor P'‘’^<<Vb feedback
mwJd Kiys that inivnisj rewards are o|,tain"’-^vatio’nal
edge ot rc-iilK.) ih.n she personally (e-s.-en «hen sh. i
1 ta^ that she cares about {expcricn,s?i ’^l*>nMbihtvl has
pSKhnlogjuJ states lire firesent th-- The n < r . ‘jn
mance, and sarisfection and dle’lowiT hr7’" ‘^'"P'^Kc's 'i'''"'
the nrffaiii/aiion. As l’■,xhihn 14 1 sh '* aj^j |;(.,.(.e ! "d’erfor-

..»,by .Se
rndnlda,!, ».,h a h.gh grop-U, „„,l ,r, „ ™.
.«« «h» ,„b,, ana c„„efc„, ,H.„ XXXX'T
arQ wnri Jow grovf th need.

EXHIBIT 14-2 Examples of High and Low Job

Characteristics

Characteristic Eumpte
SkiU nriety
The <jwn«r-op«.*ntor of a garag< who 4o«s clccthcal repir.
High rebuilds
variety engines, dries bjilv work, and intrruYs with ewsrumeft
Low vanen*
* A boJ>*!hhop worker who spray? paun 8 hour^ a day
Task
k cabinetmaker who dcjiigii^ fl |Mcee <it hj mi cure, stkeh Hie wood,
identicy
High hlentity huilda
Ixiw hknnrv the object, 4firi frn/shev it ro fXT&U/n«
4 A worker in a fwnuiure factory whi>o^wrii«2 hihe sokly co make
Task aignifiwm Ug?
Xunung the sick in a hospital micnsive care
High
unit
significance
Ixiu significance Sweeping hospital floors
A telephone in<«ralkr who •icheduivi hi* or her own nwrk for che<ia)’,
AutMomy
rrvi^’es
High auvmnmy
n«a will*MH supervision, atul ifeddc* o« the most cfTuethc ttchfiHpies
hit
Ixrn autonomy
a particular installation
A tdepht»w oiwratiJT whe must liaiulle lalU as il'cy rtnne atstirding to s
nunne. highly sps'Cified procedure
ftrcdhBck
An tlectrtintcs fosturv worker »h«. »«»niibl«s a modem and then leso
ii i<.
dciermine if h opvrares |>n>per^y
An
I efttHWltls
— fattr/O’ ’^<^ker who o-onbles a modem
Ute j< and then nwtes
Mttn <• CopyiW*
it »•
a qutbty cntnil in-peit»r who tesrs it for pn^wr
J

n|«tition and makes

,

nettled
ac^tfvonertes
 ittrion
Syitrm The Job Characteristics
Model
lisn 14-3
Crtticaf Personei
.
paycholofial
smes and work
crutcofvws

SkiU variety Experienced

> High internal
Task Wentity meanirgfulfvess
of the work work mocnration
Task Htgh-quality
signtficafwe
ExperwKed work perforwance
responstbllic
y
High satisfaction
Autonomy ------------------------------------------ ojtcornss
of the work with the work
Low absenteeism
Knowledge of the and turnover
Feedback actual resulu of

die work activities

V
Soi^nx. J.fl. Hackman and J L. SuUe. cds.< ZmpMMng IJIB 8t Vi<or* (G'ewiew, IL Scon. Foresmen, 197 r), p. 39.

Moreover, they will rcsjvind mure positively to the psychological states when the>* jrc
present than will individuals with a low growth neerl.
The job ch a ra Cl eristics model has been well researched. Most of die evidence
supports the gen end framew iirk of the thenr\ —that is, there is a set of job character-
istics, and these chanuteri sties .ilTcct bchaviuraJ outcomes.’*^ But tliere is still conoid"
erable debate about the five specific core dimensions in the JCM and the validity ot
grtnsTh need strength as a mcxlerating va riable.
Wicre docs this leave us? Given the current $bite of evidence, we can niakedi«
following statcincnis with relative conluicncc: (I) People who work on jobs with hi^’
core ioh dimensions are generally more iiKJtiv^ied, satisfied, and productive tban^
those who do not; and (2) iob dimensions operate through the psy^chological
influencing personal and work outcome variables rather than influencing the
conics direedv?’^
f

Sotwl ^’’^'^atioQ-Procegeir. vt j
than n, tbeXv/r {x'ople a-si^o,, 4 ninfcck-arjnffli^
e<.»acu..U„ d-c,,.,. I.l
(SJp) nifliW-"
 The SIP m<J.lel argues that einpiy^ ^’»Pt«r 14 Technobj^ »nd Work Oe«t
,he SCCMl cues provided by rtJ.ers veiih uSom»>el.=iviors in re
c-worke. s. supemsors. Irienrts, farnik- n, ? ***)'«>nw« i h?
Ijng prt . Munnur pb working in a Bn.ish ( ±0 H.r
dns one paid f.arheuiarly well. a^i-k , i'4is were L
,..e^7wn weeks later, however, his n.odvarion
«.as rhat his ca-uorkers cnns.stendy b.d-mouthed i ' “‘'1 ’"’• ^ad happened
luring, .hac having Jock in and nut proved "a- wK
^penxsop never bstened to their opi.nnns. The obieT'^'u '""<> ‘h«
,^dn,„ ihanped in the two-week jK-rind; rather (iX h (larj-’siob
basis (»f nie«agcs he had recekctl I'roiti others ' ’ Kalin-on tbe
A inimlxT of studies generally conlirm the 1 1
insrance, n has been shown that emplowe mom ari ** '1 ”* ™«<’el.’^ For
lated by subtle actions such as a co-worker or boss e'"' can he manipu-
jiiseiice u( job J'catiircs such as dtfllculiv chalk-ncr existence or
n can be inanipu-
should give as much (nr more) atteiitinii'p, eniuloKes''\J'^^*'-'“‘"^’’-^V
rhet give to the acnjal charaaeristics of diosc joU' rhev miirbl'^^ ’’
-"Ployees how i„,c,«u„g .„d Lj jcLTt ™°"
^ptoi should ,Eo no, k surprised th,, newly hue J e„,p|„,„s J people ",
„ p,„,„o,e,l ,0 a new posiuon are rno.e likel, to he teeepnve ,o Le.al info„n,„,T„
d)in are those \nth greater seniorih;

Work Redesign
What are some of ihe options nuinagcrs have at their disposal if they want tn redesign
jobs to make them more interesting iiiul motivating for employCLS? The foJlo^ving dis-
cusses four ot those options: job rotation, job enlaxgcment, job ennebmenr, and team-
Used work designs.

Job Rutation It employees suffer from overrourinization of tiicir work, one altema-

live is to UH* job rotation (or what many now call mw-hiy/w/g). Wiib this technique,

when an activity i^s no longer challenging, the employee is rotated to another job. at
the same level, that has similar skill requirements- For instance, America West Airlines
cruss-trains all ihcir customer serv'icc representatives. The company say5 that this
gives employee's more job variety^ and challenge. And for emphjyces who are inter-
ested in upward mobihry; cross-rraining exposes them to about sixieeii differen^r^s
•if the company versus oniv one they would l>e exposed m it jobs were specialized.
1 he sirengrhws of job roTation arc that it reduces boredom and increases luouva-
bon thnmgh diversifying the employees activities. Ot course, ii can • ^2.
I>enefit5 for the organization sinix* employees with a wider range o '
ageincnt more flexibility in hdiedulin|r work, adapting ro changt'. an j^sed
On the (rthcr hand, job rotation has its drawbacks. his or
and productivity is reduced by moving a worker into '' rotation also
^'vr efficiency at the prior job was creaung organizanon employee,
creates disruptions. Members of the work group a'c . and monitor-
I he supervisor may aJso have to spend more . mbjrion can detnoiivate
"jg the w«wk of the recently roraicd empkiyee. km jn their chosen
“Welligem and ambitious trainees who seek *■

'Pe«4ln
 f

The OrpWMtif^n Systwn W

Job EoJwsement More ch<w 51. yean^go. the idea of e-.p^ndinje 'J
nr wh«^«’l job enlargement, grew in papularny InereaMng ibe nun.hcrand v,„. ■
X ofLk. individual pvrtVn nKd reM.lted .n ,ohs with .nore d.verMty
of nnk sorting du' incomirg in.dl by depannien.. for .usance, a mail sorter^ jobeould
be enlMfcd W include physieaiiy delivering the mail to the vanom .Icpartmenrs«»
runuingoulgoinB letters diroughllK postage meter.
Efforts at job enlargement met with less titan eiithas.astiL- resiiks.-+ As <««
einploj’CC who experienced such a redesign of his job remarked, “Bt-torc I had 005
lousvRjh. Nw. through enlargement. 1 have three!"
' /Uthough job enIsM'gement nuacked rhe lack of diversity in overly sp^xialited
jobs ir did litdc m instill challenge '^r mcaningfulness lo a workers aetivities. Joh
ejii'ithnienr was intro.luccd to dc.i! with the shorteomings nf ciilargeineni.

Job Enrichment Job enrichment refers TO the vertical expansion of jobs, h

increases rhe degree TO which tile worker controls the planning, execution, and evalu-
aci<jn of his oi- her work. .An eiirichcd job oi^anizcs tasks so as co allow the worker to
do a complete aciivit). increases the employee’s freedom and independence, increases
rcspousibiliie, and premties feedhack, so an individual will be able to assess and correa
his or her own perftimiance.
How docs jnanagement enrich an einphy'eeX job? "JTic following suggeshons,
based on rhe job cbaracterisdch luodch specify the types of changes in jnlis that arc
most likely to lead lo improving their motivating potential (see KxhiWt 14-4).

1. Cyw/jw/e Munagtr^ diould seek ic lake CAJsting and fruvliuiulucd casks and pot
them back tygeclicr to form ;i new and larger niodulc of work. 1 his measure
increases skill variety and task idcinity.
2. fVivnr Ntfr/nffZ-srent uniu. The creation of natural work units means thar the tasks aa
enjpkjyee does term an identifiable and ineaiiingfixl whole. TH 15 measure increases
anipkiyee "ownership* of die work and improves the likelihood tfut emplo^xes will
^•icw their work « meaningfal and iniporunt rather than as iiTple%*ani and boring.

EXHIBIT 14-4 Guidelhes for Enriching a Job

---------------------------------------

Suggested action Core |ob dimensions

;S',' >,, .1111 ,1,1
tiBlo SkjBvylcy

^ Forming natural work Talk MentiQr

ffittahttihing dient

:'l 1 . ■ ------------------
relationships loadrng Automm

charmte

J1^. HflcMwan aM XL $MU

; /• * e4s../rpmMn|Ul^*(ni0rt(aHrM«xt^Scaah»«aman^ 1977 LO 13&
 fJc Chapter 14 Tethnolni^ and Work
J. ExtafM chevf reioftert^hip/. 'I’he udient is th

M
empluyw works .m (iind may he an prodiKt or svrwr that the
organi^^uion). Wherever pwsihlv, maiwifer/ch'^’u^ JKrrnconc mitside the
sJtip* heewevn workers and ihcir client tn tn esiahliidi direct relation-
back for tiie employee. ''ariety, autonmny. and feed-
4. £v/7^/«i^y6Z-r VerUcal expansion pves cinDlov.*t.
tbac were formerly r-erv-ed for man.X tn* tn direct relation-
t>ewe«n the doinj!- and the \ontr<dlu,g- aspecls of h 1 ’’ i —
employee auronomy, P^cis of the |i>b» and H increases
5. d'uHncb. Feedback lets emplovces kn.iw n.s..... u
fonihng rhrir jobs but also wheihcr their perform net’ it ’ P®'*
renwining af a ronswin Jevd, hkylly, feedback about
Jirerrly ns rhe emplovcc doe. the Performance ,houW lx. receive
• ’ ’ Mtherthan from manage men i on an fKeasional

I
In general the overall e-.^Jence shows that job enrichment reduces absenteeism
and turnover costs and increases satisfectionj but on the critical issue of productivity-
6e evidence .s inconclusive?'^’ In some situaiions, iob ennchiuent increases productiv-
ity; in others, it decreases n. Even when productivity goes down, however, there docs
seem to be consistently more conscientious use of resources and a higher quality of
product or service.

Team-Based Work Designs Revisited Jncrcasiiigly, people arc doing work in

groups and teams. WTiat, if anything, can we say ahnui the design of group-based
work to try’ co improve employee perfornwiue in those groups? W'c kjiow a lot more
about iijJjvidual-based W'Oik design than we do about desitrn at rhe group level, mostly
because the w'ide popularity’ of teams—specibcally assigning tasks to a group of indi-
induals instead ot to a single person—is a relatively recent phenomenon. That said,
the best work in this area olfers two sets nl suggestions.-^'
First, the JCM recommendarions noted above seem to be as valid nr the group
level as they are at the individual level. Managers should expect a group to perform at
a high level w'hen (1) die group task requiros members to use a variety of relatively
high level skills; (2) the group task is a whole and muwngful pietx of work, w itlt a vis-
ible outcome; (?) the outcomes of the group’s work on the task have signihuani conse-
quences for other people; (4) the task provides group members with substantial auton-
omy for deciding how they do the work; and (5) w’ork on the task generates regular,
trustworthy feedback about how well the group is performing.
Second, group composition is critical rn die success ol the wor greup-
Cohsistent with findings described in Clhaprer 8, managers should w to ensure that
the following four conditions are met: (I) Individual members have rhe necessary task-
relevant expertise to do their work; (2) the group is large
«)members possess i,ncrpcrsun.il as well as task skills; and (4) membership .s moder

atcly diverse in tenns of talents and perspectives.

Popular Work Schedule Options

Jn a work world where employees are increasingly complainJTtg ...L.Uule onrions about being pressed
^'-r time wl the difficulty of balancing personal and work fives,
’uch a. flextime and tclecommuring can be a way W .mpmve employee
pnxlucbvjtv, and sarisfaction.
Tt>e Orfuunuicm Sysietn '
Hcxrimc n«rim. is short ft»r "flesihle work hours." It’s a «heduling
allows employees some discretion over wh«m they arnve at and leave work,
ha^o worU specific number of hc.urs a week, but they are free to vary the hr«n^
work within cerSn limits. .V sh«.wn in r.xh.bit 14-S. each day c.nstsu of a cotjinxm
core, asoally su hours, with a flexibility ban.! surrounding the core. For example,
exclusive of a one-hour lunch break, the a.re may be 9 A^M- to 3 P M., with the office
actually opening at fi A.M. and closing at 6 P.M. All employees are required to be «
their Hibs during the common core [scriod, but they are allowed to accumulate their
two hours Iwfore and/or after the core time. Some flextime program all^
extra hours to be aawiulated and turned into a free day ofFeach month.
Flextime has become an extremely popular scheduling option. The pnjponkmuf
full-ome U.S. employees on flextime almost doubled from 1991 to 1997. .approximately
25 million employees, or nearly 2H percent of the U S. full-time w firkforce, now ha»c
flexihiliiv in dieir daily arrival and departure times?* But flextime isn’t available dl
employees equally. U^iile 42.4 percent of xnanagers enjoy die freedom of flextime, only
2 J. 3 percent of manufacturing workers are offered a flexible schedule?**
rhe benefits claimed fr>r flextime are numerous. They include reduced aUen-
tceism. increased productivity, reduced overtime expenses, a lessening in hostility
toward management, reduced traffic congestion anjund work sites, elimination of tardh
ncss, and increa.sed autonomy and responsihilily fur employees that may increase
employee job satisfaeoon.^^ Bui beyond the claims, whats flextime’s record?
.Most of the performance evidence stack's up favorably. Flextime tends to reduce
absenteeism and frequently’ improves worker productivity/* probably for several rea-
sons. Employees can schedule their work hours to align with personal d^mand^ thus
reducing tardiness and absences, and employees can adjust their work activities to
those hours in W’hich they’ are individually more productive.
Flextime’s major drawback is that its not applicable to every job. It works well
with clerical Usks for which an employee’s interaction with people outside his or her
(Jc^partment is limited. It is not a viable option for receprionisLs, sales personnel in
retail stores, or similar jobs in w hich comprehensive service demands that people heal
their w ork stations at predetermined times.

Telecommuting It might be close to the ideal job for many people. \O commtitinp*
flexible hours, freedom lo dress as you please, and little or no interruptions frtMn cot-
leagues. Its called telecommuting and refers to eniploy'ees who do their work at
home ai least twu Jays a week on a computer that is linked to their office. (.A closeh
related term rAr r/rOizJ —is being increasingly used to describe employees wtxJ
work out of their home on a relativciy permanent ^sis). Currently, about 21 niiilit*’

EXHIBIT Y4-S
Example of a Flextime Schedule

I
3m 4m
 p^le in the United States tekcoiwnutr *2 L- technology and WorkO^i

plain' Sotmare. Patagonia, and Xerox are . Management Svs n

VVliat kinds of MK k-nd rhunsekS
be^n idennfied a.s m.,st apprup.iatci to.nine?,Three cateEones have
ines and pmkssional and other knowJedg,_^™J'™-’’’^dhng tasks, moWleaL-
and employ ers who spend the majority of thl J »"»-
phone are n.Koral candidates for tekcomi,,,,,; “t the telc-
ewtorner-.scrvKx- representatives, reservation aec K ' '"i”' ’c'cmarltetcn,
spend iiinsl o! dicir time on the phone. As Iclecomm ' specialists
on riieir computer sci ceiis at home a> ea.silv as..n tk information
There are numerous stories of telecoim., in any office,
teleiomniiuers and claimsstories
There numerous that it nf
has sav.-d the
tele ^••ccew ' .A1'S.-T has 55,000
75 percent of these -AT^T itlcroinmutere said rni'hon And
personal and family lives tlian licfore they staned wewL *^'^ "'T
claims that tclcconunuring has increased nrothictivitv ■’5"^ ^ysicins
key employee, who ,night o.l.erwi.e h„e left, .„d ,.„'d jI mT
|,„„ overhead. As the cost of trad.tion.l office space has cst.laL aod the ev.vTof
telee—niauoa, eqm^en, ha, plummeted, maoagots „e i,KTea„„gl, mohvated
to introduce the nmial office b a wny to inmate employee ikxibilin' and productiv-
in; improve employee morile^ and cut co.sii.

Ihe long-lenn future of teltcrnnmuiing depends on some questions for which

wx don\ yer huvc dcfimiive answers, Por ijtsunce. will employees w’ho do tlicir w’ork
ar home be ar a di<;advamage in office poliuo? .Might they be less likely co he consid-
ered for salary increases and promotions:' Is being out of sight ct^uivalenc to being out
of mind? Will non-work-relared distmedons such as children, neighbors, and the
close proxiinin* of rhe refrigerator significantly reduce productiviiy lor those without
supennr willjxiwer and discipline?

IMPLICATIONS FOR MANAGERS

Technology is changing popic’s jobs and their work lichavini. Quality

management and its emphasis <jri continuous proces^^ imprnvemenT can increase
employee stress as individuals find ihat performance cxpectahons are ^nstanrly
being increased. Process reengineering is completely reshaping^c j s o tm
lions of emplovees. And mass cust<xni/ntion E making it possible for organm-
tions to efficiently tailor products to individual eustotne.’s tastes, but tj-pMlIy
requires cmplovees to go rhniugh significiuic rd raining. u.-rtlnmes to
The /„rg„„z»ti™ «ppli» hpcrnet. intranet, and
*e M, hneatltS „f ,ta aepvities. „ i™
managers. hor instance, employees etnpbvcc monitoring
undermine rherr work prod,rcnv,t,n the X'^r.^lo,™ privacy;
wjfruarc creates ethical dilemmas tor tn.n .g . precedt-ni: op'"
decisions must be made more quickly overload and furdier
Minimum cations increase the porenual . be able to make
QKISI
distractions from work tasks; cffecmx lea usions. and eiiiplweesin
‘lensHms quickiv. maintain high flexibility, boddinK political allies,
t-orgs will likclv use electronic networks as a
2t4 Part Organization System

An undersModing of wrk design can hdp managers design jnhs that pc«^.
nvdy affect cinployxe motivyuon. For instance, jobs rhf>t score higJ^ on the
•ncrciihc an fmpHyee’s control over key elements in hjs or her work. Therefore
joi)s th at ofler autonomy, feedback, and similar enriching task characteristics help
to KaTisfy die indindnni goals of employees *'ho desire greater control (jver their
WTJrk. Of course, toit5;rstcnr wirh fhe stKaal «ifofnia«on-pfrx.es5ing mod^[
perception that task cliaractenstics are enriching is probably more important in
influencing an employee’s motivation than are the objective task charactensties
themselves. The key, then, is to provide employees with cues that suggest that
their jobs score hi^ on feernrs such as skill varict)’, task identiry’, autonomy and
feedback.
In an effort to help employees copc with work/lifc confUexS, managers
shokdd consider implementmg work scheduling opxk>n8 such as flextime and
wtecomnauting where applicable.

I
t*:

Vr-
 /

Human Resource
Policies and Practices
After reading this ihapter, you should be able to

1. De$cnb€ jobs fof which interviews are effective seiotton devices

2. List the advantages of perfonnance’^imulatjofi tests over wrirten tests
1 Identify fotx types of employee training
4. Identify the advantages of using behaviors rather than traits in appraising
peribnnance
5. Explain the most popular performance appraisal criteria
i. Identify who, in addition to a boss, can do performance appraisals
7. Explain actions that can improve the performance appraisal process
t. Describe approaches for managing workfwre diversity

he quabn of an organizadons workforce is largely a result of rhe people it

H

hires. II a firm hires new cmplovees with inadequate skills, for mstante. the
work perforroance of«hese employees is likely to suffer regardless of maiiagenicnt s
efforts to pronde morivarion and leadership, create effective groups, or design chai-
Icngins jol>s «
The message of this chapter is diat human resource p-iUcies
such as cmpltnec selecn«»n. training, and perfonnanee appraisa ^bicct of
unce an organizauons effecriveness.' We begin our discussion u.th the sub|vc

hjrintr,

EMPLOYEE SELECTION
'^lui ch> application forms. intcr>icw5»» ft>r olHatnmg
P”^*ul lenen of rccomnwndanon have determine
•4-n.o.m ,b.», . M. -PPUCM. >bM t-an hdp UK orpmaaoon
fUrtlV Tbe SjWcn

a
or nor rhe flppHfant^ ski Ik, knowledge, and Abilities arc u|>propriaic for the }<*'
question. In rhis section, we review the more im|Mirtant ot these selection device*^ *’
Jhtcreicw.s, wriuen xcsfs. ami perlonnancc-simolaricin tests.

hucrvicu'S
in .South Korea, iapan, and manv other Asian touniric*. cinplovee interviews tradititj,^
ally Ji a VC not been part of the sekcdon process. Decisions were made a I most entirely
the busts of evam scores scluiksnc acartnplishTncnrs, and letters of tecomincndaonQ
’I’his is not the case, however, tbnjughout most of the world. It’s prolwbly correct
chai mosr of tloiAknow niauy people who ftave gorren a full-dmc iJi wiihnut at least
one intern ew. Of all the seketitm devices char organisations use to difk-reniiate inb tac-
ilidares, the hiterview cymlinues (o he the iiiie most frequently used.- Even eompanjcs in
Asian counrnex have begun to rely on employee interviews as a sen: ening device?
Not only is the interview widely used, it also seems to carry a great deal uf
weight. That is. rhe results tend co haw a dispropcruonate ainount of influence nn the
sclccuoi) ^keision. The eandidaTr who performs p<M)rly in the enipkonnenr interview
is likely to Iw rot frtim rhe applicant pool, regaidlcss of his or her experience, tot
scores, or letters ol recouun end anon. Conversely, “all too often, the person mostpoh
i shed in jnb-^r eking techniques, par tied adv those used in the interview pnieess, is die
one hired, even though be (rr sbr nifiy not be the best candidate for the position.”'*
These findings are itnpomnt because of ihe iiristrueuired manner in whicli rhe
selection interview is frequently conducted. 'The unstructureil internew^shon tn
duration, causal, and made up ol r>indom que.sdon5H-has been proven to be an inrf
fccrive Mjiccrion device.*' I be JaUi gathered from .such interviews are tvjMcally biased
and often unrelated to fa cure job performance. Without structure, a number nf biases
can distort rusulis. These biases include hnerviewers tending ro favor applicants w’ho
share ihrir atumdes, giving unduly high weight to ncgauve information, and a Hawing
the order in winch applicants are interviewed to influence evaluations.^ Dv having
interviewers use a standardized sci of questions, providing intcnfowcrs with a uniform
incdiod of recording information, and standardizing the rating of the applicant’s qual-
ified tion.s, the variability in re.sults across ajiplicnnts is reduced and the validity of the
interview as a selection device is greatly enhanced.
The evidence indicates that interviews arc most valuable for assessing an
cant’s intelligence, level of motivation, and interpersonal skiils.' ^^Tien rhest qualities
are related to job performance, the validity of the interview' as a selection device is
increased. For e.xatnplc. these qualities have demonstrated relevance lor perf^tinance
in upper rnaiugeriat positions. This may explain why applicants for senior luanagC'
mem positions t)-picaJly undergo dozens of inten iews w ith cxecunve rccruitert*, hoard
members, and other coinpjmy executives before a final decision is made, h can
explain why organizations that design work an Hind teams may similarly put applied’’®
through an unusually large number of interviews.
In practice, most organizations use inten’icws for mure than a *prcdicbon-of-
pcrfonnance” device? Companies as diverse as Suudiwesi .Airlines, Di.vncy, MicT<«ofu
and Procter & Gamble use the interview ro assess applicant-organization fit. So
additicMi (o specific, iob-relevanr skills, organizations arc looking at canAdaics
sonalit)' char^txensbes, personal values, and the like to find individuals that fit
the o^anizjihon^ culture and image.
 ■P^*t15 '’umsnRcwwcc Police,
Written Tests
•h-pical uiirun tests intelligence, aptitude .1 i-
pipular as si-I« lion dcsStes. the,, have gcncralk’ ,1' «»d integrity. Ltxw

drtrtctcn/. d as disenininaring, an.l many ..tKani^ri k ’^equcnrly Jx^en

i. »Iidate, such lists js
lx.-ing jol.-rclated, ‘’hdaied. << cajmix
Tests of inielk-tnjal abiiiiv. ^natial -^„,i L - . .
„d motor -ib'liT ^’«ve been shoH-,, Mxuraty,
skilled and iinsUlkd opcnitive jol^ in indiisirial or.«^, • P’’®dietors for many s«3ni-
proven to IK- parricilarl)- g.xxl predictors h.r ,..bs that XuLTr'
Japanwauio makers, u heii staffing plants in the ••'-''P’ltivc complexity.*'’
written tests Io predict which candidates will he high perfoXis^^'f "'"'“"J
TwiJia. for instance, <-an lake up uj three days of o- j •' *'’h
. .............. J-
abilin' work with others. uv<unty, ana
-As eth.^1 problems have increased in organizations, integrin^ tests has-e gained
popuJarj^'. I hese are paper.and-penal tests that m«.surc factors such as depen^bil-
in-, carehiincss. responsibility, and honesty. The evidenev is impressive that these tests
are powerful in predicung supervisory ratings of job performance and lounterpitKluc-
ovc cmphiyee liehavjur on the job such as theft, discnplinc prtiblcms, and exccswve
alfrcntcckm.’-

Performance-Simulation Tests
VVTiat bettvr way is there co find out if an applicant can do a job than having him or
her do it." I hat’s precisely the Ic^c of perfonnance-simubtion tests.
Perforinance-simulation tests have increased in popularity during the past two
decades. Undoubtedly the enthusiasm for these tests comes from rhe fret that they
more easily meet the requirement of job rclatedncss chan do most written teats.
The two best-know n performancc-simulation tests are work sampling and
assessment eeniers. 'I’hc former is suited routine iobs. whereas the latter is relevant
for the seleedon of managerial personnel.
Work sampling tests are hands-on simulations of part or all of the job that
must l>e performed by applicants. By carefully devising work samples based on a
detailed descriptKMI of the tasks involved in a job, management determines the knou l-
edge, skills, and abilities needed for each job. Then each work sample element is
wtchtxl with a corresponding job performance element. Work samples are widey
in the hiring of skilled workers, Auch as welders, machinists, can^ntef^. and clec-
fneians. For instance, cajididates for production jobs at B.MWs factory m South
are given work sample tests.' ’ They’re given 90 min uics to perform a variety
epical work tasks on a specially built simulated itsseinbly line.
lhe results from work sample experiments arc impres-sive. Studio aJm^^
tiemonstrate that work samples yield validities supenor to wntten aptitude

A elaborate set of
J*»ltt«e 1 candidate^ managcnal poteonal, is p^vchologists eval-
I® centers, line executives,
cwdMb.es » the) KO through one to several days of exercises tna
5-
The OrgaBlmon $y«Mn
,, ____ X •he iobJ’ Based ort a liwofdeicriptlve
pmWerna that they wotdd activities might include intendt^^
qnns that the acnial j« - kadcrlcss gn«’P diH-ossions, and businewdeek -

X. muTdccidr how to'respond to i« num<« i« h.s or her u.-basker within ,

hour ixriod. , 1 he evidence on the

It
J k»w valid I* the assessment center as a selc< non
Tliev have consistently demon-
effectiveness <‘f assessment centers is impressive
managerial
srrated results thai predict bter job perfr.rmanc r in

Competent employees don’t remain competent forever Ski11$ deteriorate and can
become oby>k te. 'I’hal^; why or^nizafinns spend billiuns of dollars each year on for-
inal training. For instance, it was reported that U.S. corporations with UM) or more
employees sjxnt S54 billion in one recent year on formal training for 50 mjllion work-
ers?' Xcmx. as a case in point, spends more than $3(W tndliun each year on training
and retraining irs employees.’**

Tjpes of Training
Training can include everything from teaching employees basic reading skills to
advanced courses in executive Icaikrship. The following summarizes four general skill
categones—basic litcrac); technical, inrcrperymal, and problem solving. In addition,
we briefly disruss diversity and ethics training.

Basic Literacy Skills Ninety million American adults have limited literacy* skills and
about 40 million tan read little or not at all; this literacy problem is costing U.S. com-
panies $60 billion annually in lost productivity?*'' workplace demands require a
10th- or 1 Id^-grade reading level, but about 20 percent of Americans Ixtu ccn the ages
of 21 snd 25 can’t read at even an 8th-grade lev el.-*’ In 1998, 36 jxrcent of U.S. job
aptilitamoi failed some version of a basic skills test.’’ In many Third World countries,
few workers can read or have gone beyond the equivalent of I he third grade.
Oi^anizarions are increasingly having to provide basic reading and math skills
for their emplfn*ee$. As long as job demands continue to require that individuals hav'e
solid skills in rhe 3Rs^ and many job applicants continue to lx deficient in these skills
employers will need to take |K»idvc action to close the skills gap. Manv business firtWs
lor instance, are hiring instruemrs and offerim* classes in English and mathematics ft*
employees at the workplace and during work h ours.

T^hnicaJ SldlU Most iniining is direcied at upgrading and improving an employee's

technical skills. Technical training has become increasingly imporant todav for t*®
reacns—neu- technolog) and ncu structural designs.
Jobs change as a result of new technologies and improved methods- For
mswnce, many auro re|«ir personnel have had lo undergo extensive training to fixawl
maintain recent models with computer-monitored engines, electronic stabtliuo?
Mtelliic navigation s>-stenis. and other innovarions. .Siinilariv. ciMnpuwf
required millions of production employees to team a whok
 f".™-
eMnp* <lesipn. ,^s orga,„>,u„„, iniportan, becn.se of
and break down rradinnnal deparunenwl^"''*«’*■
It-arn a wi'It-i' variety' nt i;,sk«i. "amcrs, employees need tn
Inwrp*’’^*’"*’* en,p|„vves belong tn . i
J,eirw■‘»•^^ IKTloj-mantt depends nn their abiluv ,.,i. r Ri some dcerec.
,x,rker and ibeir boss. Some employees have t'xeelien'’HnV'''^^^‘'^‘’‘''i^
-rsre«iu'''i-' iramingto improve theii-s. J'his indinl..« I "'‘■'''’fHit oth-
h<.«' to communicate i.kas mote clearly, and kZX
play^^*
Problem-Solving Skills Managein, as well as nianv cii,Dh,v..r< .vS .c,
j^utiPf have to solve problems on the |oh. VVIum petmk tetuc^ ^ttorm nnn-
Idelicicntm ibe.n, lhev can pardemnte in nrX?v^ ' ' ’‘><'1'*’’ut
,„,We acuvitH. to sharpen their lojpc, reas.S^ing, an7J
,,ell as thvit abilities o .i«tss causation, develop alternatives, analyze alum
select solnrions. Probiem-soinng training has become a basic part of al.no”;
eveiy organizational cffoit to introduce self-managed teams or implement qualiiv-
managtrnent programs, ’

WTiat About Diversity Training? fhe centerpiece of most tliversicy programs is

training, for instance... recent surv-ey (ound chat, among tuinpanies with diversity ini-
tiatives. MS |>crccnt used training as part of their programs.-- Diversity training
programs are generally intended to provide a vehicle lor increasing awareness 'and
eMniiiiiiig stereory'pes. Participants (earn to value individual differences, increase
their CTCKS-CUICiiral understanding, and confront sicereoh'pes.*^
The rypiciil program lasts from half a day to three days and Includes rolc-phipng
exercises, lecuircs, discussions, and gn>up experiences. For exainple, a training exer-
cise at Hantord Insurance chat semghr to increase sensicivih* to ^ging asked partici-
panrs to respond to the fullowinp bur questions: (1) If you didn’t know how old you
are, how old would you guess you are? In otiicr words, how old do you led inside?
(2) V\^Kn I was 18,1 thought middle age began ai age (J) Today, I ihmk middle age
begins fl! age ____ . (4) Wluir would be vour first reactiem if someone called you "an nhkr
Horkcr’7‘^ Answers to these questions were then used to analyze age-reiared stere<»-
h'pes. In another program designed to raise awareness of the power of stereotypes,
tach partitipani was asked to write an anonymous paper detailing all groups—women,
born-again Christians, blacks, ifays Hispanics, men—to which they had attached
stercohpes,-' They were also asked to explain why they’d had troehle working with
‘•ertain groups in the past. Based on responses, guest speakers were brought into the
to shatter the stcrcutyT^es directed at each gnMip. This was > owe j ex c
diwiission.
About Ethics Training? A sun-ey fouml that alxiut 75
working in the l.lHffl largest U.S. corpiratii.n.s receive ethics traimug,
on wheduT you can teach ethics is not clear.
Cntk-s argue that ethics arc based on values, an * , already been
^■*'1) age. By the time employers hire |u'uple. their e “taught," hut niusr be
^tabltshud. The critics, also claim that ethics cannot he formally

In’ cxdinpk.
 The System
SuBPWten ofcthKs training argt.e that values «n be leaded and changed a^
early chiKl. And even if they couldn't, ertnes tia.mng tvnuld IK effee .ve
rhclp^mployces «, recognize erhied dilenunat. heco.ne more .avt^re rj tk edtie,!
LXndcdt-ing their actions, and reaffinns an nrpm.zant.n s ex,Kc-tao.ms that tnem.
bers uiU urrcthicaNy.

Tmining Methods
Training methods are most reatlik eUwfied as formal or informal and on-ihe-iob or

off-thc-job. ff a , I • I 1I

Hiscoricaliy, training meantTw-witf/ Its planned ui advance and has a

structured formar. H<jwvver, evidence has indicated that organizations are increas-
ingly relying on m/»ww/rrd<n/nj(—•mstrucuircd. unptanne.l, and cisily adapted losit-
nations and individuals—Ikr leaching skills and keeping employees current.-'' In real-
ity. most informal training is nothing more than emplityees helping each other out
They share information and sohe work-related problems w ith one another. Maybe
the mosr important outcome of this trend is that many managers are now supportive
ofwhsr used to be considered “idle chatter." At a Siemens plant in North Carolina, for
instance, management now recognirits that people needn’t be on the production line
to be working.-" Discussions around die water cooler or in the cafetena weren't, as
managers thought, about nonwork topics such as sports or politics. They largely
focused OU Miking u'i>rt*re1ritcd prubUni^. So now Siemens' management cncnimges
$ucb uaMial meednrrs.
(Jn-ihe-j^ih Trahiifig includes job rotaaon, apprenticeships, undci^tudy assign-
ments, and formal mentoring programs. But the primary drawback of these on-the-
job training methods is that they often disrupt the workplace. So organize hum
invest in ffff-rhe-jfft rra//ii/ig. The $54 billion figure we cited earlier for training costs
was largely spent on tht fnnnal, off-the-fob variety. WTiat of training might
this include? The nmst popular is live < lassroom lectures. But it aiso encompasses
\*idcola|>cs, public somixiars, self-srudy programs, Internet courses, satellite •beamed
television classes, and group aei ivities Aatusc rolc-playing and case studies. One of
the most famous olT-the-joh training programs is the twy-week course oftered at
McDonald's Hamburger University.-’^ Hain Vs curritulum combines operations
enhancement, equipment management, and interpersonal skills training for restau-
rant managers and franchisees. And its all done in a protected environment
maximizes learning while minimizing frustration on real customers. Alost of us have
experienced tltat ‘‘slow bum” when we have to deal with a clerk, cashier, or other
service employee who is undergoing training on the job. 'They take up our valuable
time while a supervisor tries to explain or show an employee how particular tasks art
to be done.

PERFORMANCE APPRAISAL
Why are performance appraisals important? I low do orgaiiizaii(»ns appraise th* pcr-
onnain-* <» t eir employeesr What potential pniblems can arise to subsen th* inten-
oons ot ob(c«jve appraisals, and how can managers ovenxune thus* i.ntbkinj,? 'Il»e«
are the key questions addressed in this section.

J.*
It
 Chapter 15 Hunan Rcsnurce Pnlido, and
jVn-fonnance Appraisal and Motivation

fn <* h 3 ptcr 4, i.’oiisi dera b I e ii iten d on was invc n K ► t h P .

..v
\v< cLiTt^ndy ..ffcn the best
jn,ount ol effort an .ndiv.du.l will exeri on hi^ her i,?h \
moW is pcrlonnance. specifically the effort-performwce and
Mages. Do people see effort .as Jca.Iing to perf< ’ "e
that they vafoe? Cleady people ite ro Th"

„eed to know how rhe.r pedorn.ancc will be mcasmred. hurtber fol .n K fi T ?'
dent that il they e.x«i an effort w^dlin the,,- capabilities it will resuk in .
p^rfonnance as defined by the entena by winch foev are hMgXn J VS
fed confident that .f they i^erfor.n xs they arc being «k«|. thev will aV Je tS
fevwd;^ du‘y vahie. <HKvt cn<
In hrief. if the olvecrives that employees are seeking are unclear, if the enteria
for measunng foose objectives are vague, and If the employees lack confidence that
focir efforts will lead to a -satisfactory appraisal of tlu-ir performance or believe there
will he an unsansfactorjr payolf by the organizabon when their performance objectives

are achieved, we can expect iiidmdtials to work considerablv IH;IOW their potential

Hence, performance appraisal plays an important role in intineneing an employee’s

What Do
motivation- We Evaluate?
The criteria or criterion that managenient chooses to evaluate when appraising
eripl<A-ee performance will have a niaiur influence on what employees do. Two exam-
ples illuscrate this point.
In a public employment agency, which served workers seeking employment and
employers seeking workers, einplojTncnt interviewers were appraised by the number
of interviews they conducted. The interviewers’ actions were consistent with die the-
sis rhat rhe evaluating criteria influence behavior. Interviewers were more concerned
with the number of interviews they conducted than widi die number of clients they
placed in jobs.-^^'
A management consultant specializing in police research norited that in one
community* officers would come on ducj’ for their shift, get into their police cars,
drive to the highway that cut through the toun, and speed back and forth along this
highway for their entire shift. Clearly this fast cruising had little to do w’ith good
police w'ork, but this behavior made sense once the consultant learned that the com-
munity's City Council used mileage on pulice vehicles as an evaluative measure of
police effectiveness?*
These e.x3mpfes demunstraie the importance of criteria in performnee
^raisal. but what .r^rnz/ZJ tnanagemcni evaluate? rhe three most p(>i»ular sets ot crite-
ria are individual task outcomes, behaviors, and traits.

•ndividual Task Outcomes If ends count, rather than means, then nianag
‘h-uld evaluate an employee’s task outcomes. Using task outcome.s a plant mm
’get txjuld be judged on criteria such as quantity produced strap g -
per unh of p'roduction. Simtlarly. a salespetsran could be as.. . n o e.H
«les volume in L or her territory, dollar increase m sales, and number
*^'’unt» esrahlished.
The OtgaiWcadon Symm
Beh^o» In many difficult«. identiiy apeafic nutc.nes «n he
w «. ciloyce^ artions. lliia ,s pamnilarly n ue ..t employc<-H .n staff^
rioim and individuals whose Mork assignmcnis are inffinsiu, l> |m( ofa tcan, efft^ .
rhe b.r.er case, rhe team's perk.rmance may Iw .T«l.ly en.duaud, u, he ec^rnlnwcne,
each learn member may Iw ditticult orimposwhk in KleirUly dearU. li, siah msTanew.j,
,s nor unusual hr management ro evaluate ihe employee s tH-havior.Jls.ng rhe pr«k,»
examples, behaviors cd-;, plant manager that eouM be used hr jrerbima.ue apprai,ji
purnows might itKhnIe promptness in suHinmng his or her nionihjy rrimrts ar the
leadership style that die nKln.1^^e^ exhihitt. Pertinent s;dc5i>cpson behnviors could
average number of contact calk made per da>' or sick day^ used per vMt.
77, e ^^eakest set <if cnrcria, yet one that is still widely usrd by
organitatintu,
is individual traib. We sny they arc weaker than either task ouccomes or behavinrs
because they arc hirrhcst removed frojn die actual performance of the joh itself.
such as having ‘\i gcxxl attitude,” showing ‘‘confidence,” being “dependable” or
“cooperative, ” “Inoking busy,” or possessing -a wealtli of experience” may nrnwy not
be highly correlated with positive task niin?omcs, bur only the naive would ignore the
01
real 17 That such irails arc fre used in orgaTiirations as criteria for assessing an
employee’s level of performance.

Who Should Do the Evaluating?

Who should evaluate an employee’s performance? The ohvions answer would seem to
be his or her immediaTc boss. By tradicion, a manager’s authorin' rypically has
included appraking subordinates’ per for man t:c. The logic behind this rradidon seems
to 1>c diat since managers are beki responsible for their suhtirdinates* perforinancc» it
only makes sense that these managers should evaluate that performance. But that logic
may be flawed. Others may actually be able to du the job better.

Immediate Sujierior About 95 yiercent of all pcrfonnance appraisak at the lower

and middle levels nf rhe organizanon are conduct€<! by the employee’s immediate
boss. ^* Yet a number of organizations are recognizing the drawlwck.s ro using this
source of eval ua Lion. For instance, many bfKses feel unquulilied to evaluate the luiique
contributioas of each of rheir subordinates. Others rcsen: l>eing asked co “play God”
with their employees’ careers. In addition, with many' of today’s organizations using
scifrmanaged teams, telecommuting, and other organizing devices that distance
bosses from their employees, an cniplnycc’s immediate superior may not be a reliable
judge of chat employee’s pertnnnancc.

Peers Peer eva]u.»rions are one ol the most reliable sourtres of ^pprakat data. Why*
Firsu peers arc clow m the action. Daily interactions provide them with a compre-
hensive view of an employees 10b pcrfornuince. Second, using peel's as raters results in
several indc|>endcnt judgmeiirs, w hereas a boss can offer only' a single e-aluadon, .And
c average of several ratings is often more reliable than a single evaluation. On d*
down side, peer evaluations can Miffer from co-wwkers’ unwillingness ro e^^wte <W
another and from biases of friendship or animosity.

Having employees evaluate their own perfomuiKc is consistco’

seh-inanagement and empowerment. Self*o*aluauuns get high
marks from employees ihemscbrs; they tend to lessen employees' dcfcnsi%eAC«
 Chapter 15 Human ReMMirce Policies and Pr*cd««
about the appraisal pr.>cess^ anil they make exedkhr v k i r
-cr/onnanre disfussuuis benvecn emplovecs anj ? " stimukung job^
^juess, h<i*cvfr, they suffer from ovcrinflate<l aLsV niight
S^rcnvvi. self-evaluations ofren have low agreeinen^ wilh scU-servmg bias
Because of ihese .mon. drawhaeks. sdf.evaluL’o," are
developmentJ1 uses than evahiadve purposes. better suited frir
feurth judemenr 'smirr'A s.^ i».
SuborJin;iCv:s. These evaluations can provide accurate and'detaSldiX**
marag^T. 1 hey ,,rc also conscstcin with ...any organizaticns' eff..t,s tn create cultures
j„r value honesty, openness, and employee empowemreut. 'Ihe obvious problem
dns form <./ ratine^ is tear nl reprisal from bosses g.v.-n unfavorable appraisals
■rhefft-rv, re.spnn.lenr anonymity is cnicial if these evaluations ate to be accutate.
The Comprehensive Approach: The 360-Degrec Apprais.-il The bust
Approach to performance appraisal is the use of 360-degTee appraisals?-* It pnmdes
for performance feedback from the fell circle of daily contacts ih,u an employee iiug^it
hare, ranging from mailroom personnel to customer to Ixissei to peers. The number
of appraisals can be as few as 3 or 4 evaluations or as many as 25. with most organiza-
tions collechng 8 to 12 per employee.
A survey of 232 companies found that more than 65 |>erccnt were using 360-
d^rec appraisal(’oiiipanfes currently using this approach im ludc Alcoa, DuPont,
Levi Strauss. UPS, Spimt, Ar&'H and W.lGore .Assonates.
V\'hat’s the appeal of 360-degree appraisals? I’hey fit well into organizations that
have introduced tcairis, employee involvement, and qualif^’-managcnicnt programs.
By rehing on feedback from co-workers, customers, and subordinates, these organi-
zations are hoping to give everyone a sense of participation in the review process and
to gain more accurate readings on einplotn^e pci*fbrmance.

Pertormance Appraisal Methods

Obviousiv, performance appraisals arc iinportHni. But haw do you evaluate an
emplot^ee’s performance? That is what are the specific techniques fir appraisal? The
following reviews the major perfonnance appraisal mcihods.

Wrirten Essays Probably the simplest method of appraisal is to write a narrative

describing an eniplovee’s strengths, weaknesses, past perlomiancc, potenaal. ansi sug-
gestions lor improvement. The uTitien essay requires nj; comply-
ftainirg to compkle.
bad aiijraisal may be determined as much by the evaluators writing skill a.s by the

emplyvue s actual level nf pert’onnance.

Critieal Incidents Critical incidents focus the

*at are key in making the difference what the employee
Qych. That h. the appraiser writes down only specifichehav-
did that was especially effective nr incUcctivc. The ey ^^rincal incidents
and not vaguely defined personality traitSi 3i*f ‘ ^hown the behaviors
Pn^VKles , rid) sKofexumples from which the emplm^c ear be shown
m desirabk and those that call fur improvement.
 •T
• <; •
The OrTWlMti"" SW'”
i..HnrSrtlcs Onc.ftheoWcnandmostp^ulirnwthcMlscfippral,^
G«phic l^np , «t of pcrfi.nnanw favton. jmch ^
the .!«■ oJ gi^h'c « J[ . ..ij-n.^vWpe, cooperation, 1oyalt>', attendwu,
quunot.- and M; ’V -<goe. down tl.u list nnd rateTS;
honesty. .UHI I • ■» npkallv specify live points, so a factor such as>

^^'^■,^'”'■^.'”■■’''‘'1^ ‘l<=pth
of inti>rnntion\h't essuys or cnrictl inadents- do. they are less tmu-wnstunirg
devclon ..nd administer. Thev also allow for quantiUUve annh-s.s and coinpans.,n.

Behaviontlly Anchored Raring Scales Behanontl y ancliored ra ing scales wmbinc

maior elemenrs tn.in div vriiical incident and graphic rating scale approaches: Hie
appraiser r.tirs the vmplovecs on die basis ol Kenis along a conQiiuuni. hut the points are
exam,des of ,x t.wl hehanor on the given iol, rather than general dcscnpnons or traits.
Behaviorally anchored raring scales specify dcfinire, olwerv-abk. and tncKur-
able j«.b behavior.'Examples of job-related behavior and perfonmnee dimensions are
fnxind by asking p^rccip^ints ro give siK'cific iliu^alicins uf ctleccive and ineffective
liehavior retr.irdingeach perfonnance dimension. These lx:havi(irnl examples are then
translated into a set of pertornijnce dimensions, each dimension having vanmg levels
of performance. I he restdts of this process are iK-havioral dcsci iptioiu, such as antid-
paics, plan.s. executes, solves trninediaiv problems, carries nut orders, and handles
emergency .siniarions.

Muidperson Cx>mparisons Multiperson comparisons evahwtu one individiuh

perfornuiKx against that of one or more others. Tt is a relative rather than an absolute
measuring device. The three mo.st popular comparisons are group order ranking,
individual ranking, and paired comparisons.
The oetlcf rank'ifig requires the evaluator to place employees into a partic-
ular dassiffcation, such as top one-fifth or second onc-fifih, This method is often used
in recommending students to graduate schools. Evaluators are asked lo rank 6e stu-
dent in the top 5 percent, the next 5 perccin, rhe next 15 percent, and so forth. But
managers to appraise employees, managers deal with all their subordi-
nates. Thereft;re. if a rater has 20 subordinates, oniv 4 can be in the top fifth and, of
wurse. 4 must also be relegated to the boitom fifth.
The mJiriiit/al r/ntkhfg approach rank orders employees from best to worst. If
manager is required to appraise JO snixirdinatcs. this approach assumes that the
difference between the first and second employee i.s rhe same as ihal between die
iMenty-first and twcnry-sccmid. Esen tliough .some of the employees mav be ebsek
^ouped, Ulis approach allows for no ties. The result is a clear nnfenng nfcmplm-«s.
Inim the highest perfonner down to the knve^i.
The p.,ire.l eomparur,,, approach compares each employee with every otbef
employee and rates each as eirhei the superior or the weaker member of the pair. After
all paired cximpar.sons are made, ea. h employee is assigned a summan ranking hasc-i
.m the number of superior scores he or she achieved. This approach ensures that exh

U rciame stands nU. For ciample, u uiu*eW

r
I 1, k- , Humin
R«ourcePn^«^
^ieht 'I''- 'hr graphic rating ^-ak- an.l ,hc indnadu-i „ t
,nl«>mwn«»n ahniii its snuicnts' pcrforminr/^ ^"’*1"***”"' »*'’*’<*« moi*
:«•' aU«.!.itf grade'„f A ‘*‘e
at tv^,,st,',dentil‘ "" L’ ’“■'^P'TOvi
H,fferaiK at mnndng c-.uraes anti draw omd'Sl
jbouT each where neit to one gra.k- it says "ranketl fourrh \ cnnclusioni
^hersav.' "■•anke.l t.uirreentli <nii of ihjny,'-()i,^,j . .’
X! «n-’^ ’‘’V'rH>sly, the Utter inntr.ietor
•T iiutrumrpvra ogtout
pivcA

SyggeMions fbr Improving Performance Appraisals

^1,, ped,.nuance appraisal proe-evs is a p.tcntial .raneik-ltl .d prx.hknis. I nr instance
evalu^itor. on nuke kn.ency, halo, anti s.nd..r.,y errors, or use the pr.,e«s ft< Xl
eJ ptiq^oM's. 1 hey can unconsciously .nftate evaluations (lu.sitive leniency) mukr-
state iKrtori.i.niee (negative leniency), or .dlow the .tssessinent of one eluracterist.c to
unduly inlluciiie the assessniein til other charat-terisi.cs (the halo error). So.ne
upiiraisci' hi.is their evaluations by iinconsciouslv favoring people whtj have qualities
and traits siniihr to themselves (the sitnihiriq- eiTOi). ;\n.l, of curse, some evaluators
see the appraisal iiroccss as a political opix.ituniiy to nvcrily reward or punish
cinplnyv-'v- tl’slikc. While there are no protections th.it will niurranlte accu-
rate perfonnance appraisals, the following suggestions c-an significantly help to make
the |)r«Hcss more tibjcui'v ami fair

Emphasize Behaviors Rather Than Traits Many tracts often considered to be

related lo gocxl perfonnance niaVs in f<K’t» have licrle or no rciaricjn lo performance.
ForexampL\ trails such as loyalty', ii’kitiiitive, courage, rcliahilin; nnJ scir-cxprewiion
are intuitively appealing as dcsirahlc characteristics in employees. But the relevant
question is: .Arc individuals who arc evaluated as high on those traits biglier pcrftirm-
ersthan those who rate low? VVe can’l answer this question easily. VVe know that there
are employees who rate high on these characteristics ami are jxjur iwrfonners. We can
find others who .ire cxccHeru jKTformers but do not score well on traits such as these.
Our eoncltisi<in is that traits such as loyalty' and mitinlivv may lx: prized liy managers,
hut there is mi evidence to suppon that certain traits will he adeiiuate synonynw for
jierformance in a large section <d j<jbs. ,. tn id i
Another weakness of trait evaluation is the judgment itself W wt is nya ty .
'Hen is an employee ‘‘reliable ? What you consider -loyalty," I may not. So traits
suffer from weak inlcrratcr agreement.

Document Perlbrmance Behaviors in a Oiary Dianes

^»rgani/t intormation m their memory. I he evidence
vpccifK critical mcidcnts lor each employee, . i , , r..dHce k-nicneV and
less prone to rating errors.^'^ Durics, lor .nstanee tend 8938

halo errors lice a use they encourage the evaluator to fotus on |

^*havn,rs rather than traits. .

* Uulciple Kvaluaton A.s the nuiiil>er ’«> f<»|bs* a normal

’Naming more accurate infonnation increases. I \ p j mah*hy ctmgrc-
an iiHTeasc in the nundxT of appraisers wi jthlciie aimpcooom «
I"'-. .h,«, rt„ n,i,l(lle. V,.u scr .b„ .PP-”.''' udX pcrfn™“«
.„,l A «I •>, evaluaW’.' P-PK. P^
hrtnr The Oi^hlMdjjn Syewm
k.wcM He«.iCM .n- dh.ppea, «•»<’ the fi.ul |KTfr.rmfln« i, .n^,^
..r thne .cn.nining- The l-.gu nf ...ult.ple „ ■

««• nw AM- ............ .. >l>^- .hr ' I’-'' I l.r.el..rr. I.y

viniihivcv. wiihin the org^mrAiiKMi MI U* VI g’JHi n huiiibpr o1 c\nluau(>hi» OP
iiMiitf nuilliple asu’>MM‘s G»s pnn’ulrd «n appNihJs). IIUTUASV llw
;d)iluyot'.HWnignKHvv.iliaaud rJi.iMc r^..hhmons.
Hflluaie Sckiiivch Appi.nM r' JVHIUI ev.ihiuic only in urvan in vhuh they have
M.inc If Mter. iitike rvuhratiuns only an (limcnsuins lot ,hc‘y arc in
a pxxl posiiinn in rale, 'vc im-reusv ilu- interralvr iigrvemcni «n<! make the apprai^l
nx»re valid |»rnee.ss. 'rins jppmai’h also uxogrnzes lluii d: He mi I organizaucMMl levels
often have difteirrn orient inions toward I hose being nnvd and oUenv them hi differ-
cni ’H-tiings. In general, therefore, we would leeonintentl that injiUunors dwnild Iw as
cloM as poxsiWe» in terms of organizational level, to the indivutual lx ing appraised
Conversely, lhe more levels that svpaniie (he evaliuiior and the person being evalu-
aitd. ihv less oppominii) the cvaluaioi has to observe the inilividnals heluvioi and,
not surprisingly, the greater the possibility lor inaccMriieies,

Irain Evnluators If you can’t //«//g<«id evahiaiors, lhe alternative is to wtr gticxl
rvatuDiors. There is suhstantial evidence that training evalnau»rs ran make them more
act (Irate ratei’sJ’*
(ainnnon ernirs sin h as halo and lenieiu'y have Ixx-n mininnzAxt <»r cliininauxl in
Workshops in which nianageix practice observing^ and rating livhaviors. These wnrk-
shn|b typically run from one to three days, but nllocaling many htuirs to (raining iiuy
not always lie necessary. Onv ease has Iwen cited in which Ixith hahi and leniuney
envoi's were decreased immediately aher exposing^ evaluators to explanaiorv training
sesMons lasting only live rninuies. lint lhe effects of tr.iining do .ip|KMr to diinniisli
twer lime.'^’ This suggests ihe neetl for regular refresher sessions.

Provide Kniploycvft with Dne Process The concept of\/w< /izvAWcun IK applied to
appraisals lo inii-ease the pereepri<m (haI employees are trcaietl fairly.’’’ Three tea-
turcs eharaetenze ttuc process sysiciiis: (I) iiulividnals are provided tvilli adequate
notice ol what js expected ol (hem; (2) all relevant evidence to a priqnised v iolation is
aired in a fair hearing so indn iduals afteeteil can respond; and ( 0 iht* Ihial decisMW
based on the evulence and free from hias,
I here is txmsitierahle eviilcnce linn appraisal systems often violate employees
due process liy providing them with infrequent anil re la lively general iwrlbrnuiut
feet^Mek, allowing them biilc input into the appraisal priKcss, and kmnvingly intm-
ducing Inas into iKu foimattce ratings. I low ever, when due process has been pj(«
appraisal sysu in, employees report |)osittve reactions to the appraisal pnxess, [wranx
t e rvaluaimn results as nuire accurate, and expre^ inca*ased intern n» remain with
the orgMui/ioioiv

Don'l l-orgct Pcrformaiue Kwdbuckl

’’^anaj^'rs, few auivines are more unpleasant (han providing |Hrfornw»^
t^mployees?- In tact, unless pnssured tn- organi/4tionai policies and CJ®" .j
tmh, managers are likely to ignore this res|H»ns(hdi^?’

1
 , , Chapter 15 l.un,»nKa.
Mb, the ^luctance to perfonnan« feedbavlc'."UCW I’fJiciMjnd
Th Prw;tlfl<
rtiree rea«>t.s. hrsi. managers are often unenmfonat ' r *'
.•eaktiesses .hrcctly xvith employees, tiiven that alm"? ‘‘•'’''•’'"ng perf.in.unee
n, imi'Tovc in some areas, nwnagei-s fc.,r a eo„fro,„a, *’'7 '•‘"’P'nyee could stand
(^llwvk. I his apparently apphes even when i.eooi,. .hv'”' * negatht
putet! Bill fiates reporu that 'ticniwift condu-t-d^ .w
rate their i xperieiite with .i einiiputer. “Whe,, i, Ji **“* required users to
worked M ich ask for an evahuition of its ixrfornianee the
iliw But »hin we had a second computer ask the «im '‘•'''de.l u, 1« pt®.
Counters uith the first m.ielunc. the ieop etre
„,„c-tance to eriticirx the firs, computer •,!. its laX J^^'h
to hurt its Ic-ehngs, even though they kncM it Mas onb ^mjcJiiL Se‘'‘‘”i ‘
emplnjres tend to bccon^ defensive when their weaknesses are poimJd oct
of accepting rhe feet I,ack as constructive and a basis for miproving performance
,«m« emplo.vces challenge the evaluation by criticizing die manager.it redirecting
Idanic to someone else. .A surv ey of 15 i area managers in Phila.lclphi i, for instance
found that MS ixrceni of these managers encoimtead some tvpe of aggression after
going employees negative appraisals,-'' Kimilly. employees tend to hive an infiated
jssessnteiit of their iw n pcrfonnance. StatLsticalb s|waking, hall of all employees
must he iieloM-avcragc performers. But the evidence ind'ic.nes that the average
emplnyccs estimate of his or her own pcrfonnance level generally falls aruiind the
75th perccnrile.-^’ So even M’hen managers are proviiling giKid news, empiotxes are
likcK to perceive it as not gcMxl enough!
The solution to the |Krtbrnuncc feedback problem is not (o ignore it» hut to
train managers in how to conduct txmstructive feedback sessions. An effective
rexiew—one in which the employee perceives the ap[>raisal as fair, IIK manager XS sin*
cere, and the climate as constructive—can result in the employee leaving the interview
in an upbeat IIKHKI, informed a lx nit the perfomiancc aixas in which he or she needs to
improve, .ind determined to correct the deficiencies/ In addition, ihe performance
avivw should be designei,! more as a v'ounscling iutiviiy than a judgment priKTss. I his
can hesi he aexomptished Iw allowing the review* to evolve out of the einploncs own
self-evaluation.

UTiat About Team Performance Appraisals?

Perfonnaiicc ipprjis.il itmivpts have been alinosr exclusively
employee-s in mind. I his fact rellevts .he l.hct cha.
47
building block around which organizations are biiih- But as MI se ? around
«u. .hi« b..,.l. „„.re .„d ,.,.,rZ;.rg,niz«„.,n, are reerruUunng
HDH should rhosc organ using warns <. imonwes th«
luve Ix^en offered li designing a that suppirts and imprm J
f"n«nee„f,e™,s.“

1. 7ir /ir rtfults J' * aceoinplish.

apply IO iniponani goals that the icatn is supi
2. Bf^pn t:ift> ibe Hinit'i (Wtnmtis afJ ~^|,uted in teniis of the ewno’*"'’
TbTfinal pnaluc. the cusu-twr reexi.ves can ‘;X; X^ontheh«uof«W.«n,
rnpuretiients ITw betwe^ teanw ^je ume.
and ukutiT)'. ^nd the pnwei® »wj“

.4
Hut IV Tlic Orgmimtion Syntm V
3 Afrijwr botb tcttta und MtitvidtMf Define the mks <»f <arh team
a wnns of m-wnplishinviiu th«f wppon the wain's work process Then u<c«
niembert vomribubon and lhe team*5 rrt crall pcrAumance.
♦. 'Mn to /h 7»»rrtrw/«. Han ng the (cam define objearvea AM
ihofte of cath jnemher ens.iirc« Hut everyone underscands his or her roU un
Acteitt
and helps (be team develop into a more cohesive \init
Perft>nnan<e Appraisal in a Glohsil Context
We previously examined rhe role that perfonnance appraisal plays in motivation and
in affecting Irehavior. Caution inu-st he u.sed» however, in generalirjng acr<m t-ultures
WTiy? Because many cultures are unt parricubrly concerned with perbrounce
appraisal, or, if diey arc, they don’t look at it in the same way as do managers in (be
United States or Canada.
Jo illustrate these paints, let’s look at three elements of culture: a person’s reU-
donship to the environment, time orientation, and focus of res|xjnsibiUc\\
U.S- and Canadian organizations hold people responsible for their actions
heouibc people in these countries believe the)’ can dominate their environmert. In
Middle Eastern conn tries, on the other hand, performance appraisals aren’t likely to
I* w’idely used, because managers in tliese countries tend to see people as snhiupted
to (heir environment.
Some countries, such as the United States, have a short-term time orientation.
PcrforiTjancc appraisul.s arc likely to be frequent ui such a culture, couducted at least
once a yeir. la Japan, however, where people hold a long-term time frame, perfor-
mance appraisals may occur only at five- or ten-year interv’als,
Lsradk culture values group activities much more than do the cultures of the
United States and Canada. So North American managers focus on the individual in
performance approisals, and their counterparts in Israel arc likely to cmphaMze group
contributions and pcrfonnance.

___________ IMPLICATIONS FOR MANAGERS

AlajMgers contrul the selection prcxTcss, decisions rcg^irding employee

traitiing, and how employees are evaluated. Because these manage rial decisions
affect the qualit)' nt an organization’s workforce and rhe beharior of employees,
care needs to be taken lo ensure that the organization's selection process, rrainiDg
programs, and appraisal system support high employee performance.
An Organization’s .selection practices will determine who gets hired. It prop"
erly designed, they will identifr competent candidates and iKruratelv match ihcni
co the i<»l) and the organizatjon. ( he u.sc of (he proper selection devices will
increase die prnhabiliiy riiac ihc right pervun will be cho.scn co fill a slot.
While employee selection is frr from a science, some organizations fail lO
design their select ion systems so as to maximize the likelihood that the right
person-job lit will be achieved. VMten errors arc made, the chosen candidates
performance may he less than sat is fact or)’. Training may be necessaH’ to
improve the candidate's skills. At worst, the candidate will prove unacceptable
and a replacement will need to Iw Idund. Similarly, when the selection pruec0
results in hiring less qualified candidates or individuals who don’t fit into d*
 ■ Chapter is ,, '

:»s
/orgamzanon. chow chosen are I,LHI . R«>«iree PolW- J
This, .n turn, IS likely tn Cense
-t-h. rno.« ,.f,v,oas vffecT o. cr.S
,mpn« mg the sbii.s necessary- fr.r ,k ® P^grams on work i' L
her M»b. .An increase in uhiJit?i„.„_ ‘ ®'"PH-CC TO suceeswi.u'^**^
higher JnxI. Of c<„,rse.
i»ue of motivation. P^reinial become* p P^'rfcnn at >
A g„., „rperfor„,„,, „
perfonnance ctmcrihimon as a basis fL? ? “ «x-Uratch. r .
pcrtormaticc appraisal process em»i, ‘‘^'''ard aUocarion »
appraises actual job performance *^riteria
deinonstrare.1 in Chapter *’‘> be Jer-
negame consequences such as red «qu«c> the.,rs- rh
for aJceinarive job opporwnidcs. ‘lUci.’rreism'^^r “amb
 4

r' . CHAPTER 16 ...................................

Organizational *1
I

Culture
1* After reading this chapter, yo'j should be able to

1. Define the common characteristics that m^ke up orgdniistional culture

Contrast strong and weak cultures

01
CM
*

Identify the furctiunal and dysfunctional effects of organizational cutture on people

List the factors that maintain an organization's culture

%d VI

Clarify how oilture is transmitted to employees

Describe spirituality and characteristics of a spiritual culture

♦•«*

Contrast organizational culture with nalional culture

1. Explain the paradox of diversity

JiX.d organizations. In Ch^prer J, ux

their aid hides tunl behaviors ln\i !>tah!e iraics hdp u5 predkr
pic..™ be <HUC ..cganie.,.™, „te pcc-
vativc. Thesu irans, jn f,„ fh,.„ ''«■»»> «nnovaavc. w cwiser-
dlc people \^,thin diese oiganizau„ns/^ rtf
that, airhougb JiarJ variable in organijawiis
enipkwccs generaliv cJcsfribc ^n'r uwcrtheless exisTs and tbt
Just as trib j culnirc!, havc^rnr"'"’
*11! act toward fellow .ttcnbeij an.l
h.iw n.embe.>. I.ehave. Iu7. u^.r nrganizarions have clrures that g'l'trr.
finploj-ce attitudes aiu) hehavh.r 's-, how it has an ituparfoo
diuosse*! in tht: following pages lie managed
 pjy-rNING ORGANIZATIONAL CULTURE
Jis meaning held iw members *" ’
Srim- - Th. sy'.teni o, shared meaning SnZ: ‘T’"
,cren«tks rh.« die orgamz.irion values. R«earch has s..gg^^^ l’
a^racterisoes. m aggregate, capture rhe essence of an

I. Imm- Jlinu anJ nsk raking—lhe Avmc tn whi.-K i

mnnvative au.l .ake risks e.npirnees arc en«.ura«d w be

2. The degree to which empkryct^ arc

aiialysiv. and arwncion lo detail exhibit preasKm,
Ofitcowe wiewrZrt^i—ITic degree to which manaff*.in^«n. t
3.
conwM rather ih.., the Techniques «nd proccs.es t.ed to.ch^.^.e^oL^lutrotn?,''

4. Pa.t>ie he tiegree ,o which n.onagcncn, decisions rske into considers-

tKUi the effect of ouicojncs on people within the orgai.j^ation
5. degree to which work acuvities are o^gani^cd aremnd i«nis
rather than jndmduals

6. z/ffirrtorrnw—The degree to which people are aggressive and ewnperirive rather

chan (tasygouig
SM'ty ~Vhc ilegree to which organizanrrnal activities euiphasire maintaining ihc
7.
qarus quo in contrast to growth

Ejch <d these charncrerislics exists on a concmuuni from low to high. Appraising
the oi^nizaaon on these seven characteristics, then, gives a composite picrure of the
organization’s culture. This picture becomes ihe basis for feelings of shared under-
standing that tneinbcrs have about the organizalion, how things are done in it, and the
way inemhers arc supposed to behave. Exhibit 16-1 demonstrates how these charac-
rerisucs can he mived to create highly dh'ersc organizations.

Culture Is a Descriptive Terra

(hyanizationai culture is concerned with how employees perceive the seven charac-
teristics, not whether they like them. I’hai is, it is a descriptive term. This |M)int is
important because il dilfercnuatcs the concept of organizational culture from that of
job satisfaetion.
Research on organizational culture has sought to measure how’ employees sec
organization; Are there clear objectives and pcrfonraiicc expcctariniii? Does the
<’tgaTiiz4iion reward innovation? Drx^s it encourage competitiveness?
In contrast, research on job satisfaction seeks t<j measure affrerive res^ponsvs to
^hc Work envininmenr. It is concerned with how cmployccjs led a )out
ii^aiion'^ ex|)ecunons, reward practices, methods for handling con let, an ret
'Although the two terms undoubtedly have characteristics i ar is
^‘ncl that the term c.h.re is descriptive, whereas jeb is
^^aluative.

Organizations Have Uniform Cultures?

^K»ni/a,i<,nal culture represents a common ^uhureas^sj^te^

"*”^*rs. Illis Icaturc was made explicit when wc dt ,i;ffLrcin twek^mnds or

We should ex,wet. therefore, that individuals w.th ihttercm t« 6P
 jMTVgBitetfoa 9trm<B
Conirwtif’gOfganttaOonal Culture*
cxNwiT ie-t

<>r«8nir.atiM z _ ftnn MaoaKCTv ate tipceted la bitty d»c*wt«m iA

ThJ- ” ’ "’“r< who van pS detailed d>» u> wppon that r^
dcr WioK a««l jiiani^rs >rc i ^-.fnani duflffe or riak are nm «Hvnirag<
,«Mr>cnd»n<m' ... oixnh m(K»/x<l amt pcnalixcd, managers try n»<
u,
Bceausr maiuger* ol fad^ One hwer-levd manager quoted M
nfic.-hsnl (4it.« .r rhe . n,„rrn.ii^ mk. anJ regul»lM«». .VUnapw
.n J-,-;. ‘ "X' .'here .re no dc««.r-,>. .M«..gen,e« „

with higli 7«r.H.n.t ind^icluaU. r‘hr« art diMintt

«tqiartmenta»ndlinw

W..rt »uHnc. uz.- fiiriii.l n.n..u.. .nh -her en.pl^

of anil ernp'"^"'1^ of onnmanil Perfonnan. e ei-aluainms ind fei.inb
•>” —
nation of W
OrgaalutxMi Brti*' wd jsrranouons.
I hu is JIWI a manafjctunng 6nn. H«f«. h<»»cvcr, ownagcjneni
eixnuragn
and reusiids nsk laUng and change. Decision^ on inrunion are valued sstnudi a%
those
rhat arc well rari/maii/cil. .Management pridec iwlHm is history ofcxperiimmting vidine*
tedimdogics and lU succe** m regularly iniroduchig inmnauve pruducta. Aheugen or
employees *h<i have a graxl idea arc encourage to “run with it,** and failures are
fixated as
^learning vipcriemes." 'I hc* coiripany pndu* icscH on }>cing market driven and
rapidly
respomiw to the changing needs of its vusoiruers.
77rcrc are and rcguladons anphn'cev tu UAUfw, and «</pcn'«M</n » looae
hec'ause man axemen I believes ihat its employees arc hardworking and trustworthy.
Managcineiu is ismcemed with high produenviry hut IKIICVCS that thii cumek through
treat'
ingits people right. 'Che company is ^troiHl of iu reputation as being a gotnJ place to
work.
joli activities are ifesigned around work teams, and team members
arc encouraged tn
micract with pcfipk across functions and autfvjricy levels, Employues calk positivelv
jliout the to describe the organization i culture in
ajiiipetition berween teams. Individuals and teams have goals, and bonuses arc
based on
doesn’tachievemenr
mtin oF dii>se fiutcomcs. Employees are given considerate auiunumy inpro|>eraes
organiudons
choo«iigthe have a dominant cDJh,r^Most large
culture means
exjjressts
bythe corn the
which v^h..goals
k arc attumed. numerous ms of subculnires. A ibrrnnanf
mein(>ers. When we talk aU ^«hared by majority of the organization’s
nantc-ulture. k is th's niL^I, -'^‘n.re. we are referring to .ts donu-
soiiality, Suhtnltur^f tend to deXlon^n f'organization its. distinct per-
Iciiis, situations, or cxnericn.-.-s A i yganizarions to refit« common pn»h-
defined by depantneni iksimThese subcultures are litcb' to be
dejiartment. for cxaiiinlc, can have?’’ l" separation. The atwonting
that departjnert. k wiil include the uniquely shared by members of
the organization that is nhvsi.~jltv 51’^™”'^'”' bmnlarJy, an offite or unital
m-y Uie on a d.ffercmf.S^ahtv <n-n.zati<mk main o.Kwre^s
m-xJlfiedh,Hte se,«ra,ed unit’s ihsd^.i M.'nlm.n"'
 .. , Chapter 16 OrganitwonalCohart
If orgfln/zatmns had no dominant culmrt and
.ulH-iilri''’rs, the value of organizarional culture a, an '>f numerous
;^Hcandy lessened. Why? Because d,erX:M
£ represened apprepriate or mappropnate behavior, h
ofcul.crc that makes a such a potent <levice for g.dmg anthapmt>XZ'

Strting versus Weak Cultures

It has bccn.nc .nvreasingly fxipubr tv diftcrentiau; I>etv».«t, strong and weak culture
urg^-n’vnt is Unn stnrng cultuiy hnvc a greater impact on employee behavioTS
•
are ni»re directly reiated ro reduced rtimover.
T7 '"i'^Tl ■'
navior and
"■-g-ni«t.on's core values being both
>
intensely held and widely shared.- The more members who accept the core valuesand
#
d,e grciiter rhc.r oi.nmiimcnt ro those values, the stronger the cnlture is. Consistent
ft I1*1J ft a greater influence on the behavior of its 7
metnhers because the high degree of sharedness and intensiw tTeates an internal cli- 3
mate
ijped
of
one
high
ol
behavioral
the strongest
control. For
.service
e.vainplc,
cultures in
Seattle-based
the retailing
Nordstrom
industry.
has dcvel-
Nordstrom
,-
employees know in no uncertain terms w hat is expected of them and these expecta-
0
rions go a long way in shaping cheir behavior. x
One specific result of H strong culture should be low employee turnover. A -
strong cutttJre tlernorisiraies high agreement among members about whar the organi- 'i
zation siands for. Such unanimity of purpose builds cohesiveness, loyally, and organi- S
zational
die organization-
commitment. These qualities, in turn, lessen employees’ propensiti’to leave
;

WHAT DOES CULTURE DO?

We've alluded to org'.inixadonal cHliureV impact on behavior. We’ve also ejfplicitly
argued that a strong culture should be associated with reduced tornov’cr In this sec-
liiin, we more carefully review the functions tliai culrure pertornn and assess whether
culture can he a liability’ for an organizadon.

Culture’s Functions
Culture [lerfonns several functions within an organizanon. firsi, it has a boundary-
defining role; that is, it creates distinctions between nne urgamzation and otte^.
Second, it conveys a sense ol' identitv for organization members, rhird, culture tau 1-
tstts die generation of commitment to something larger than ones mdiwdual .«it-
•nterwt. Fourth, it enhances social sysiem suhiliry. Culture is e souia gu
I’clps hold the organizaliun together by provuhng appiopnatc \ control
'-•n.l.loyecs should sav and do. Fmally. culrure sen-es -as a sen^-mak
mechanism that guiiles and sliapes the attitudes and behavior cl enij >
makes clear, culture
h^ncoon is of partcular interest to us. As the following quotauon makes cleai, culrur
^Itfines the rules of the game:

Culture by definibon is elusive, intangible, iniphcil, .nd raker f«r granted _Bur
even. ..rganizanon develops a eorc set of assamptions, understandings, and .mpiKar
ndes that pnem (bv-to-«by behavior in the workplac*- - F.
L! nwl newcomers Icam 4
 J”
1« ^'h-gatutatioQ Systtm

f
f
:
the rules, thc>’ are nor accepted »s full-fledged memlxrs of the organiutioo.
Iran^^prcssions of the rules on the pan of high-level csccunxcs or ffrmt-line
employees result in luuvcr^al disappros^l and jM>uerful penalties Clonfonniry m
the rules becomes the primary’ basis for reward and upward uwbtbty *
As we show later m this chapter, w ho is offered a job, who is appraised as a high
performer, and who gets a promotion are strongly influenced by the individuil^
organization fit, that is. wheier the applicants or employees attitudes and bchariiji-
are compatible with the cukurc. IT is not a coincidence that empkiyees at Disneylanj
and \5'ak Disney W’nrkI apiwar to be almost universally attractive, clean, and whole-
some. with bright smiles. Thars the image Disney seeks. The company sclcet^
employees who will maintain that image. .\nd both the informal nonns and formal
rules and regulations ensure th.it Disney employees, once on rhe job, will act in a rek
advciv unifonn and predictable wav.

Culture As a Liability
J**
are treating culture in a nonjudgmental manner. We haven't said that iVs socd or
had, only that it exists. Many of its functions, as outlined, are valuable (or bndi the
organization and the employee. Culture enhances organizarional commitment and
increases the consistency of cmployxc behavior. These clearly arc benefits to an or^-
i?.acii>n. From an employee’s standpoint, culture is valuable l>eejuse it reduces ambigu-
ity. It tells employees how things are done and what’s imponant. But shoul^'r
ignore die potentially dysfuncoona! aspects of culture, especially of a strong culture.
Culture is a liability when the shared values do not agree with those that will fur-
ther the organization’s effectiveness. This situation is most likely to occur when the
organizations en\nrnnment is dynamic. WTien the environment is undergoing rapid
change, the organization’s entrenched culture may no longer be appropriate.
Consislencv of liehanor is an asset co an organization in a stable ennrnnmcnt. It may.
however, burden the onganizaoon and hinder iis abilitv to respond tu changes in die
environment.

CRMTING AND SUSTAINING CULTURE

organization s culture doesn’t pop out of thin air. Once established, it rarely fades
away, forces influence the creaunn of a culture? WTiat reinforces and sustains
those forces once they arc in place?

How a Culture Begins

.\n organizations current customs, iradiiiuns, and general wav of doing things are
largely due to what it has done before and the degree of success it had with th««
endeavors, So the uluinate source of an organization’s culture is its blunders.'
The founders of an organization traditionally have a major impact in estaWish"
ing the early culture. They have a s ision of what the organization should be. They are
unconstrained by previous customs for doing things or ideologies. The small size that
typically characterizes any new organization further fiicilitates the blunders' inip(»sii¥
their v*:sion on all organizational ineml)ers. Becaase the founders have the origin**
idea, they als<j topically have biases on how to get the idea fulfilled. J he organiiAW’*^
culture results from the interaction l)etw’cen the founders' biases and assuui|Wuns
what ihe original mcmliers team subsequeiuiy from therr ow n e.tpenenceL
 nilture is largely n ixflw-ti,,,, nf«,
Bill Gates- fn-res himself « aggressive, conipetitive an,I T chairman,
same adjectnes often used to ikserilie iMitrow’ilt ‘''seipImeU. n,<»e
„ff;,iinJers who have had an immeasurable inmact .,n rk ‘■■'’’’‘cmp'Taiy etaniples
ALW Morita at Sony, Fred Smith U Federal K are
tosmeiics. and Richard Branson at the Virgin Gtwql. *^‘'y

KeepiiR s Cidturc zMivc

Once a culture is in place, practices within d.e organization -.r, o ,„ • •-e
exposing employees to a set ot simikr experiences? Fl>r example mm^T. ' “
,,rion's homatt resource practices reinforce its culn.rc, The Xd..; 'Sr

nunce appmisal entena, reward practices, training and career development a'cSs
and pronmtion procedures ensure that rhase hired ii, in with the c.dtiire, reward th,5
who support It. and [Kiuiiz.e (and even expel) d.use who challenge it. Three iorc«
piay particularly unporunt part in suhlaining a culrure—scivetiun practices the <»
3ctionii Ct top nianageinent. ind >;Dcializauon mcth<nls. Let s rake u closer loti; at each.
Selection 'i’he explicit goal of the selection pn^cess is n> identifv and hire individu-
als who have 6e knowledge, skills, and abilities to pertorm the iolw within the organi-
zation successfully. But, tj-qaically, more than one candidate will meet any given job^
requirements, 'fhe hnul decision about wdio is hired will be Mgiiiflcnntly influenced by
the decision maker's judgment of h<jw well rhe candidares will fir into rhe organixa-
cion. It would be naive to ignore this subjective aspect of the decisiem to hire. This
attempt to ensure a proper march, whether purposely or inadvertently, results in the
hiring of people w'ho have common values (ones esseniinlly eonsisLent widi those of
the organitation) or at Icxst a gotKi |x^rrion of those values. The selection process also
gives applicants information about the organization. Candidates svho perceive a con-
flict between ihcir values and those f>f the organization can scll-sclect themselves out
of the applicant pool. Selection, therefore, becomes a two-way street, allowing either
employer or applicant to abrogate »a marriage if there appears to tx.* a mi.st natch. In this
way, the selection process sustains an organization's culture by selecting out those
individuals who might attack or undemiine its core values.
For instance,' \V. R. Gore & Associates, the maker of (iore-tex hbnc used in
outerwear, prides itself on its democratic culture iUid teamwork. I here arc nii job
titles at Gore; there are no bosses or chains of command. All employees are called
“associates" and have equal authority. The company’s -W plants arc al.so kept small so
eveiything can he done in teams. In Chores selection process, teams of cinployees put
i'^b applicants through extensive interviews lo ensure dial candiilares w o can t ea
*ith die level of uncertainty, flexibility, and teamwork that employce.s have to tlwl
*idi m (iore plants are selected out.
■'■>P -Management -fhe actions of top nunagemciu also have a
''fganizanon’s culrure. Through what they say and how du-y behave, se .
«tabl,sh nonns that filter down through the orgamz.anoii as co . „ro-
h™ „,u,h freedom nunrRer, should giv^e .he.r M.bonta a.
P"«e dress, whai aelions will pay off in terms of pay raises, pn
wds, and the- like. , i iix i to 1968 was
Fw example, look at Xerox Cuiqi.* iR Xerox's staggering
^”*1* Wikm. .\n aggressive, entreprene-unal type, he oversaw
Partly 1'hcOrfini»tiiMxS>»«m ?
of iu 914 copier, one of A« niost successful product in Amrica*
bXn Under Wkon. Xerox h«1 in enavprencurial environment, with an infornu^
S-^a,;»n.der,e, irt.cv.t.vv, boM. risk-mki-.g naln.r.. Uilsons rephcemc-nt a, CEO
I K r Pv-«cr Mc(k>i«.ugh. 4 Hanard \UU ^v,th a fi.nnd .nai^gcnx-nr su4t. He.w,
tuted burcaucranc o.ntrols and a .iu|ur change m Xeruxs eJUKc. By ihc
.VR<x.l..uxh stepped do*^ in 1982. Xerox had become sto^ and fi.rmal, unth lots of
politics and rurt banks and las ers ot waichds.g «ers. H.s tepl .vrmenr ua, fhvid
T. Keuw who beheved rhat the culture he had mhented hu^dcred \eioxs ahd»t>
oomtwte Io jncrejsc the company’s campedth-cncss, Keams mmnwJ Xe^x do>n by
fttttiV 1 ^.n<)0 iohs, deJrgareri decision miking down wan!* and rehxused the oiyaniu-
rioni culture around a simple theme: the quality of Xerox pnulucts ind ^eivkev.
By his actions and diosc of his senior managerial cadre, Kearns conveyed to evcTy^>ru.
Xerox that the cmnpaiiy valued and rewankd qualin' and efficiency. When Kearns
reured in IWO. Xerox still had its problems, ‘fhe copier bu>iness was nianire ard
Xerox had tired hadh’ in developing comptitei i^cd office sy-stems. 'I'he next CKO, Paul
Alliire. again soughtV<i reshape Xerox’^ culture. Specifically, he reorganised the corpn-
radon arotuid a w'orldwide inarkenng depanincnt. unified product development and
iiunufecrunng divisions, and replaced half of rhe company’s top management team
with oursiders. Allaire sought to reshape Xrrnx^ culture to focus on innovative think-
jug and ouibLisrling the compcuucjii. Tn Ac spring of 1999. .Mlaire was replaced by
Ri^ riioman, a former IBM cxet iirrve. Wlule I hcHnan lasted only B monAs, he
refocused .Xerox on technology. He emnsioned reshaping Xerox into a LST-moving
provider of high-tech services all built around digirnl documents. Although Thoman is
pone, Xerox’s current top nmnagemcni team condniics trying lo tulfill his vLsiun.

SudaJizadon No matter how good a job rhe organization does in recruiting an J

sclecrion, new employees are not hilly indfictrinated in Ae orgam74tions culture.
Because diey Are legist fann'liar widi rhe orgaiiixadon’s culture, new employees are
porcntiully the n^ost likely to disturb Ac hcliets ind <iistoms iliat are in place. The
organization will, therefore, wnnt hi help new employees adapt to its culture. This
adaptation process is called sochlirAtion.
All Marin e.s must go through lioot camp, where thc\' prove their com mi unent.
Of Course, at the >:ime Ane, Ac ^Marine nainers are indoctrinating new recmiuinthe
'‘^Marine way.” Vunt, a rapidly growing Boston-hased consulting finn, puts evert'new
employee through a Arcc-wcek program in which ilicy bond, accjuire team skills, and
learn about rhe firms hisujry’ and key' personaeL New Disneviand employees spend
their first tv o full day3 ol work watching films and listening tn lectures on how Disney
employees are expected to look and net.
• discuss socialization, keep m mind that Ae most critical socialization
IS ai time of enuy into Ac organization. This is when Ac onranizarion seeks f>
TOukI Ae outsider inm an employee m ‘‘good standing/' Employees who f.iil to learn
c essential or pivotil njlc behaviors risk being labeled nonconfonnists or rebch and.
ultimately being expelled. Bui rhe organiz^iciun will be socializing every employed’
fxig inay >e not explicitly, diroughouc his or her career in Ae organization. Phis
cononual pnccss further contributes to sustaining Ae culture.
ScK’ialjzjtiou can k conceptualized as a protvss made up of thrw? stages: pre-
^nvai, encounter, and metamorphosis. The first stage encompasses all Ae Icarwng
at occurs ore a ncM’ menil»er joAs Ae organization. In Ae second stage, the («•
employee sm what Ac organization is really like and confronis Ae likelihooJ thK
 a»pur« Org«|«to«J
^.rratirtiis and reality nxav diverire. In tlit third .v CMture
,.te plaxv. The new c,n,.h.yee mas,cm ,).« skith'rc^.iS’for ’*7
V iwrtonus h« or her new ro es and inak. x »kt. ?i- ’'«or her

anpinyt*•' «<,rk prcJucnx^ty. cnm.mancn,... ,he orgnm.auon-, .>b,e uves an^ hX

or^anuatmn. Exhibit 16-Z .k-picts this i.nKei
The/’W'vvtwZ^Zz^Xr '>ccur<. bcl<»re (he eniplovec inins dip r^r<T,«; ' L.

^.^rhoth the work ,.. IKI done and the organ,zarion. Eor instance,,., many ,ol>S tX-
ricularb prokssional work, new members w,ll have undergone a eonsideral.lc tlejee
prior sm iahzation ,n tra.mng and m school. One nuior purpose of a business
«hool. lorexJinpic, is to MKiahzc business students into the attin.des and behavium
hrms wain, h iHUjncvs executives hclieve that successful einplovecs value
the profir ethic arc )uyaK hard, want to achieve, and work svdl in learns thev
tan hire <^ut oi husniess -ichouts who huve Ixen preinolded in this paucni
ButpretrrivaJ MK t^liZsinon goes beyond the specific job. I he selection process itself«
A1/C
ysei! in nioxt organizations lo inform pros|wc(i>'e employees about the organization as
a whole and to ensure the inclusion of the right type—tivise who will fit in. “Indeed,
the Abilin’ uf I he individual m present the .ippropriatc face during the scletlkm
process detennincs his ahilin* to move into die organiintion in the first place. Thus,
success depends on the degree to which the aspiring member has cniTcctly anticipated
the exptcuHions and desires of those m the organization in charge of selection.”'^

Entry' into the organization begins die Now the individuals con-
front the possible dichcitomy between their cxjwctntions—alxiut their iob, co-wurkers.
boss 3nd the organization in general—and realiry. If expectations prove to have been
more or less accurate, the encounter stage merely provides a reaffiriiiation of the per-
ceptinns gained earlier. But this is often not ihe case. WTierc expectations and reality*
differ, new employees must underp > socializathMi th ar will detach them from previous
asMirnprions and replace those assuinpuons with another set that the organization
ducTiis desirable. At the extreme, new members may bctxitne totally titsilkisinned with
die JCTiialities ot their job and resign. Proper selection should significantly reduce the
probability of the latter oeeiirrence.
Finally, new members must work out any problems discovered during
the encounter stage, ‘lb do so, they may have to go through changes; henw, wc call
this (he wrXtfwo/pjbofw yfrigv. The choices presented in Exhibit 16-3 are alternatives

EXHIBIT 16-2 A Socialization Model

Socialization process Outcomai

Hwttv TbeOk^^woonSyMBm

CJQWrT 16-3 &my Sodatization Options

( T1i« more a tie* vinphn ee is fwgregan’d from the ongtring wmi setrftag
vt. fnfiimak

differentiated in some way tn mat* capIxiT hi* nr her newvunxr’s role, the more
tonnak
b. Spcafic onuoUTHHi and training pR»grutm are exampU*. InlVxntal
soeialtMCKm pm^
employee directly into hi> or her h’h. wldi licde or no tpeoal atieniinn.
:y Cotieari'c New members can be Maaaliizd indnuiuJly. Many proic»uonal offactt
socialize new employees ua this wav. Nc» tneinheTs nan abo h< grouped (ngethcr and
proo^g^
rhmugh an fch ntiewl set of as i»‘ ftiikitary bocn camp.
Funi iariMr tinw M'b«bilr in which newcomers make the transicuin from <jutodertK»

indderran k' trinl or variable, ^fiied xhcdule establishes standardized stages of rraftsiuoo,
*uch«
I thtise UMxl m nitadonal training {tnigranK. It akM> includes pnibationar) periods «uch as
the^x^egf
“reowre or one" procedure <Tjmn«mly ust\l »»di i>eu assvitani professors in univerSibo.
Variabie
dungs out
schedules give no advanced nonce ot thvif irjftsinon limeiflhk FIH* cajinple, this dtxnlies the
typi* i/tWTintre i s. ]nTd«mnre «>dalizacion rhdt the luu comer’« qualities
calquail6cahon«>
proraotion sysecm. are the where one is not
necessan* advanced tor
ingredtencs n» tht
jobnest stage until
success, he orqualiries
so those she i* *n?4dv.“
aixJ
ScWrf/iT
qualiticauoiw Serial sodaJization is characterized by the use of role rnmicL who arcuair
aadC3on finned a nJ supporteil. DKesHnire snciab^flotin rries tn ynp »u'ay evrtiin
encourage die rK'wtviiwr. Apprenticeship and mentoring
characiensiics of programs art exaiiipk^. In random
the
iz;ition. n4e ctnxluls are JebberauK uiibtiehl. 11 ic oe* empkwer is left on his Of her own n»
reeniit Fraternity and sororicr ’pledges' go througfa divestiture sixializanon lu shape them
hrve
into th«
Sexra;
proper role. Baed on iV» Maaflea “People Processwg; Straae^ o< OrgpnuaUondi
SoodiQsOoflrOi^an^eiiM <3>iant%
Swnner 1978. pp td*d6. Md LH. Sd«rn. “Orsrustional Cultuie/ X/ncrfcan FeMuaqr 1990. p. !!€

organizations can uw to bring about die desired metamorphosis. But what is a desir-
able metamorphosis? We can say that metamorphosis and the entn sociaJizaUOD
process are complete when new members have become comfortable with the orpni*
/.anon and their jolh They have internalized the norms of the organization and their
work group, and they understand and accept those norms. \'ew members fee!
accepted by their peers as trusted and valued individuals. Tliey are self-confident diM
they have the competence to complete the job successfully. They understand the s>v
tern—not only their OWTI asks, but the rules, procedures, and informally accepted
practices as well. Finally, they know how they will be evaluated, that is. what criteria
will be used to measure and appraise their work They know what is e.xpecied of them
and what constitutes a fob well done. j\s Exhibit 16-2 showed, successful metanKr-
phosis should have a positive impact on the new employees’ productivity and cheif
comnutment to the organization and reduce their pro|)cnsiiy to leave.

Summary: I low Cultures Form

Eadubit 16-4 stunmarizes how’ an organization^ culture is eswblished and sustained.
T he original culture is derived from rhe founder's philosophy. Tills, in turn, sirnngh’
influcneot the criteria used in hiring. The actions of the current t<^p management set
Ae general climate of what is acceptable Uhavior and w hat is not. How employees art
to be socialized w ill depend on the degree of success achieved in matching oe*
employees* values to those of the organization in the selecihin pnicess and top maB*
agemimt s preference for socialization methods.
 OMpterlB

HOW EMPLOYEES LEARN CULTVRE

Culnifc is transmitted to employees in a nomber of fonns J-

ries. rituals, material symbols, and language. ' portnt beingmn-

Stories
D«rijj the when 1 lenry i-oid H was chairman of the Ford Motor Co,, one would
have been h,ird-pre«ed to find a manager who hadn’t heani rhe storv about Mr Fordes
executives, when they got too arrogant, that -Its name that’s.«the
biijlding. I he message was ckai: Henn- Ford K ran the cumpany.
Nike has a number of senior executives who spend much of their time serving as
corporate ston tellcrs. And the stories they tell are mcani lo omvey what Nike is
about.'” VXTien they tell the story of how co-foundcr (and Oregon track coach) Bill
Bouerman went to Ixjb workshop and poured rubber into his wife’s waffle iron ro cre-
ate a better running shoe, they’re talking about Nikes spirit of in novation. When new
hires hear talcs ol Oregon running .star Steve Prefontaine’s battles to make running a
professional sport and h) attain better-performing eijuipnient, they learn of Nikc^
Cfniunitnicnr to helping athletes.
Nordstrom employees are fond of the following .story. It .sinmgly conveys the
cninpain s policy toward customer returns: WTien this .specialty’ retail chain was in its
uifency, a (.njstomer came in and wanted to return a set ot automobile tires. ITie sales-
clerk was not sure how to handle the problem. As the customer and salesclerk sj)oke,
Mr. Nordstrom walked by and <nerheard the conversation. He immediately inter-
ceded, asking the customer how much he had pid fejr die tires. Mr. N’ordscroni then
instructed the clerk to lake the tires hack and provide a full rash refund. After
«>mer had received his refund and left, the perplexed clerk looked ar die boss. “But,
Mr. Xonlsmim. we don't sell tiresl” “I know.” replied the boss. “Inn wc do whatever
*e need to do to make the cuMomer happy. I mean it when 1 say we ave a no
queso.ms-asked return policy.” Nordstrom then picked up rhe wlcphotic and called
^end in the auto parts business to see bow iimeh he could get zsm-
St.wies such as these circulate through many organizanons. raus-to-
a narrattve of events about the organiMriuu’s founders, ni c re'Jcti.jns m
^•bes sutxesscs, reductions in the workforce, reloc-anoa o emp .^si
raisukK. and organizational coping. These stories anchor the presen
“*1 pKMKle ctplajutiuns and legitimacy b»r current pracotes.
(V 'rhe Organization System

Rimals
Rituals are repetitive ^iquences of nuivicks chat express reinforce the key value,
nf the ureaniatinn. what goals are most intporumt. which people ^re nnportar^t, and
whicfi are expendable. University faculn' nicmhers undergo a lengthy nniai in their
quest for permanenl employment-tenure. TyTi«ll» the tacuky n.eniber n on proba-
don for .six years. x4t the end of that period, the members colleagues must make one of
nvo dioiecs; extend a tenured appointment or issue a one-ye.ar terminal contract,
WTi.ic does it cake to obvain tenure? Tc usually re(|uircs satisfaetoiy teaching perfor-
mance, .service to the deparnnent and university, and scholarly actmty. But, of course,
.iatisfjes the requircinenrs for tenure in one dcpamneni al one university may be
appraised as inadequate in another The key is that die lemire decision, in essence, ask^
diose whoflre tenured to susess whether die candidate hxs demo ns crated, in six years
that he or she fits In. Colkiigwes who have been vocialirxd properly will
have proved themselves worthy of l.icing granted tenure. F.very year, hundreds of fac-
ulty niernbers at€ollege::i and unkmities arc denied tenure. In some cases, this action
is a result of poor performance across the f«*iard. More often, however, the decision
caji he traced to the faculty member’s not doing well in the areas the tenured feculty
believe are imporcanc. The iu'^iructor who spends dozens of hours each week prepar-
ing for class and achieves Outstanding evalna.tinns by students but neglects Ills or her
leseaich and publication activities maybe parsed over for tenure. Wist has hapiwned,
simply, Ls that the instrucror has failed to adapt to the norms set by the department.
The isnire faculty member will assess early on in die piobationary period what atti-
tudes and behaviors his or her colleagues w'ant and will then proceed to give them what
they want. /Kiid, of course, by demanding certain attitudes and behaidors, the tenured
faculty will have made significant strides toward standardizing tenure candidates,
One of the best-known corporate rituals is Mary Kay Cosmetics’ annual award
meeting. Looking like a cross between a circus and a Mis.s America pageant, the racct-
ing takes place over a couple of days in a large auditorium, on a stage in ft out of a
large, cheering audience, with all the pariicipnms dressed in glamorous evening
clothes. Saleswomen arc rewarded with an array of flashy gifts—gold and diamond
pins, fur stoles, pink (ladi II acj*—based on success in achieving sales quotas. Ths
“show'” acts as a motivator by publicly recognizing outstanding sales performance. In
addirioB, the ritual aspect reinforces Mary Kay's personal dcrentiinauon and opti-
mism, w’hich enabled her to overcome personal hardships, to found her own company
and to achieve material success. Tt conveys tc her salespeople that reaching theii sales
quota i.s important and that through hard work and encouragement they too can
achieve success.

Material Symbols
Fullers and Laiupreia are cw'o of Seattle’s most highly rated and expensive restaurants’
But, although they're less rhan 10 blocks apart, the two restaurants convey a very dif"
ferenr feel. Fullers is formal to the point of being “stuffy.” It has a n)useuni-!e'’®l
decor. T he staff is formaUy attired, serious, focused, and stiff. In contrast, Lampreia is
casual and low-key It has a stylish but minimalist decor, ITie staff’s casual dress and
Style are consistent with rhe decor.
Both Fullers and Lampreia consistently receive honors for their fixxl and ser-
vice; require rcservanixis days, and stxnetimes weeks, ahead of rime; and cost at Ic*
 for dinner for two. Y« the resiaurwits bav,; rwo .i.fr
dtiDfP s«'-^ =*=* smplovees- attipe 'u ” reflected in
o,nvev messages to new empluyfPS. Ar Fullers . th«e material symbols
3, and consenative. I he message at La^JVX
„j4xed and open. "ti’cr hand, is that we're
Messastes ran also he conveyed by material st^hob besu«vcd n,
Some corporauons provtde their top executives w.th chauffeur .1^ i ««cunv«.
unlimited use ol the corporate )t t. Executives at otlier Am, '"""USIIIM and
traiisixjrtation paid for fo- the company, but the car is a Chevrole7(tiT ’ “'x*’
the plane sear is m die economy section of a commercial airlint
Other e.xaniples ol material sjmbols include the size of olfires. dw cl-anee of
fomishifo^. c.tectitive fterts, the cxisiuKe of employee lounges or onsite dSTdfo
ries. and the presence .. reserved parking spaces for certaiu emplo«e>. These maiX
5„nb..b ntnvey lo employees who i. unpomnt, tire degree of eg-alitananism desineTfo.
top management, and the kinds of behavior (for example, nsk-iaking, conservative
authoritarian, piiriicipativc, individualistic, social) thatare appropriate.

Language
Many organi/anons and units within organ iz^itiuns use language as a way to identify
member of a culture or subculture. By learning this language, meiiibeniane^ittorheiT
acceptance of the culture and, in so doing, help to jjreserve it.
‘I'be following are examples of terminology used by employees at Knight-Ridder
Info nil all on, a (.alifornia-hascd data redistributor: /rrrrrrwj (a nunibcr
assigned each indi\ndual record in a data base); KM-7C{a sei of kcy-words-in-contcxt);
and rrimow/?/ ftpir/aur (searching a data bast for names or key terms in sonic order).
Librarians arc a rich source of lerminology^ foreign co people outside their profession.
The)’ sprinkle their conversations lil^crally with acronyms such as AKL (^XshKxiauon
for Research Libraries), OCbC (a center in Ohio that does c<xi|icrative cataloging),
and OPAC (tot* online patron accessing catalog). If you’re a nw employee at Boeing,
mu'll find yourself learning a unique vocabulary of acronyms, including BOLD
(Boeing online data); CATlA (computer-graphics-aided, chrec-dimensioual
hve appUtarion); MAIDS (manufectiiring assembly and inscalkLon data system); POF
(purchased outside production); and SLO (sciTice-level objectives).
Organizations, over dme, often develop unique terms to esen
offices, key personnel, soppl.ers, customers, or pmduers rh.t ere
less. New employees .re frequentlt overwheltned with .enrnyms “"'i “
.her six monX Jn the job, have become fttlly p.r. “*
latcd, this leniunolum acts as a common denominator that unites

cultur or ^ulKuhiire.

MANAGING CLLTURAL CHANCE

an organization’s culture is made up ^^a^'^and is rootci in
^■uli to change. An organii'Jtfon^ culture devc ops addinon. ibc«
‘^Pl> held values to w'hich employees are stron^y -j hese >nclude
‘ ■“•aber uf f,Kce. condnuaUy operating to matn ain P the design of
suteiiK-nts alH.ut the organiMUOns mission
phwHal sMt-w and buildings, the doHWoam leadership
style, historical sdecrio.
fix past proHuxioft prarrices. entrenched rituals, popular
stones about ke>- |)ea,rit
foniial struvture.
ents.Although
the orranizau.xi’s past perhntnance
changing an organization^i evahiatton
culture is difficnik untenxFc»
u isn’t impossible.
and the
cultural urganixaaQ|A
change to tw cffccuve, it helps if certain coodidon< are prevalent. The evi-
dence suggests ml rural change is most likely to take when most or all of the followuig
tour conditions exist;
A dranhttk 4T7<w fWTr or o’ created. Fhis is the shock that luulennincs the stact^
qiKi and calls into qiiesrion the relevance of the current culture. Examples of these
cnscs tnitfht l>c a surpnsing finaniial setback, the li>e» of a niaiw customer, or a dr>
fnahc technological breakthrough bv a competitor, li is not unheard of foi some nec-
udves ro purpnseh create a crisis in order co simulate cultural change.
7«n/oi <r /« hiidmhip. New top leadership, which can provide an alternative set
of ke}'values, is usually needed to make cultural change work. I hey are more likely u>
be pcrceiv ed as capable of responding to the crisis. This leadership would defirriiek
include the organizaann’s chid executive but also might need to encompass all senior
management posiiioas. Bringing in a neu' CEO from outride the orgajuzjdon is likely
to increase iJie chances that now cultural v alues will be introduced. An outside CEO,
ill convast to promoting someone from within die urganirjtinn, also conveys a mes>
sage to emplovcc?! that change is in the wind.
Young und sfitt/U t/rganizanon. Cultural change is more likeh* to take if the organi*
ration is bodi young and small. Cultures in voungcr organizations are less entrenched.
And ifs easier for management to communicate ir^ new* values when the <^gaaizaaoD
IS small- ITiis. incidentally, helps explain the difliculty that multibill ion-dollar corpo
rations ofren experience when crying to change their culture.
Ifijji culture. 1 he more widely held a culrure is and the higher the agreement
among members on its values, the more difficult it w ill hr to change. Conversely, weak
cultures are more arueiiable to change than strong ones.
Even when the above conditions arc lavorable, managers slxuddn’t ImA for
immediate or dramatic shifts iu their organizations culture. Cultural change h a
lengthy process- which should be measured in vears rather than months.

CREATING AN ETHICAL ORGANIZATIONAL CULTURE

TTie content and strength of a cnlnire influences an oi^anization^s ethical climate and
the ethical behavior of its members?^
An organizational culture inu^t likely to shape high ethical standanh is one thati
high in risk tolerance, low-to-moderaic in aggressiveness, and focuses on means
well as outcomes, .Managers in such a mlnire arc suj^iorred fw caking risks and being
innovative, are discouraged from engaging iu uubndled compciititin, and will pay
attention to goals arc achieved as well as :rhat goals are achieved.
A strrmg 0rganizati0n.1l culture will exerr more influence on emplovees than
weak fHie- h the culture is strong and supports higli ethical standards, it should have a
very powerful and positive influence on employee behaiior. Johnson & Johnsctfi, Ibr
example, has a strung culture that has long stressed corporate ohliganons 10 cuS'
romers, employees, the conununiryv and shareholders, in chai order. WTien pcistawd
TykooJ (a J&J pnxluct) was found on store shelves, einpkivees at J&J acruw the
jriitftion of tHe fd lowing pratiiccs: culture? We suggest a corn-
er a ni^del. Employees will look

OrgnfZHkHI^ CBteiTC
Vniied States independently
benchmark pulled the pnKl„„
for defining appropriate from .k
Izehavior «
as taking the ethical high road, it provides a nmiov^ ’'’’■'"■-management is seen
even issued a statement a.nccming the tamperSrun• N management
tiduahConmninicate ethical
what was morally nghi; they expectations.
knew what^fu Ethical amhuniir, *** employees,
iniB-
VVTiJt candi.seminutf^g
ating and managementan to creau a ic . ”
do..rganiX7±":j to do. T
Sow " ' *■’- -P'-’Xl
Prov^ ah,cal Sex up .seminars, workshops, and similar ethical trainmg
programs. I se he« iram.ng sessions to reinforce the organization’s standarik
of conduct, to clarify what practices are and arc not permissible; and to address
possible ediical dilemmas.
Visihly reward ethical acts and punish unethical ones. Performance appraisals of
managers should include a point-byiHiint evaluation of how his or her decisions
measured against the organization’s code of ethics. Ajipraisals must include the
means taken to achieve goals as well as the ends themselves. People who act eth-
ically should he visibly rewarded for their behavior. Just as importantly, unethi-
cal acts sliould be conspicuouslv punished.
Provide proactive mechanismi. The organizatiem needs to provide formal mecha-
nisms so that employees can discuss ethical dilemmas and repon unethical
behavior without fear of reprimand. This might include creation of ethical
counselors, ombudsmen, or ethical officers.

SPIRITUALITY AND ORGANIZATIONAL CULTURE

WTiat do Southwest Airlines, Ben & Homemade, Hewlett'Packard, Wctheril!

Assotiaxes, anti 'n»m’s of Maine have in common? They’re among a growing number
of organizations that have embraced workplace spirituality.

V\Tiat Is Spirituality?
^Vorkphec spirituahcv is noT altout organized religious practices. It s not about “
theology. Workplace spirituality recognizes that people have an inner ‘
»!.» „d„„Xhtd by meanngful •>’»■ -’kes place » U.e 1 X*
"Iv ’- (>rg.„,J, promote e spirint.l culture tecogn.ee that b.
■ m,„d »d . spirit, seel to find rae.ning ,nd purpose tn the.r wort, .nd des,re
uiih other human beings and l>e part of a community.

^'I*y Spirituality Now? ,

^<ical models of management and myth of ranonal-
‘^ty. As we noted in our discussion of emotions m . P > sin^hrly. concern
5; amimed rf„t the well-run organizauon cbm' " But just a.
*■"« an employee's inner life had no role m the perkedy
 1

44
*•

Mt IV TW Or^uucian SysMa
we've- now cxin.c tn r«]iu that dw Study of etnoBOM imp^ ow undenoB*^
oryanizatii.iul behavior, an □wut cness of siHittuality CMi help you to better undenttj^ 1
crnplovw lichantar in (he twenty-fim century. •!
Of course. eiuplo)-ees have always had an iiuier htc. bo why has the search
meaning amJ purpose fulness in worfc surtiiCTd now? There are a number of rcaeo^
Ue xurcrunze them i/i Exhibit 16-5.

Characteristic of a Spiritual Organization

The con«pi of workplace ^irinialin- draws on out previous discussions of topics
such AS valuts, ethics, uindvation. leadership, and work/life balance. .As j’ou’U see. fcr
instance, spiritual organizjinons arc concerned with helping people develop and reach
their full potential. This is aiialogutu tv Maslow s description ol self-actualixadon
that we discussed in relation to jnotn*an(>n. Simibriy, oTgani7,nnons that are con-
cerned with spiritualit) are more likely ti» directly addres.s pmblems created by work/
life u>nflicts.
W hat dirterentiates spiritual orgaiuxalions from their nonspintualcouncerparai
.Mchough research on this i|nestion is only preliminary, our review identified five cul-
tural charactenscics that tend to be evident in spiritual organizations.^*^

Strung Sense of Purpose Spiritual organizations build their cultures around a

meaningful purpose. MTiile profits nwy be im^Mirtant. they’re not the primary values
of the orginizadon. Southw est Aidines, for instance, is strongly coinuwcted to prorid-
ing the low cst-cost airlares, on-dme sen ice, and a pleasant exi^erience for cuscomen.
Ben & Jerry’s i lomemade has closely inteniieshed .socially responsible beharior into
its producing and selling of ice cream. Tom’s of .Maine stri^-es to sell personal care
household pnKlucts that are made from natural ingredients and are envinmmentally
friendiv.
*

Focus on Indiridual Deveiopment Spiritual organizations ret\>gTuze the wunh

and value of people. The)* aren’t just providing jobs. Thes* seek to create c^tures in
which employees can continually leam and grow. Kccugnizing the importance of peo-
ple, they also tn’ to provide einplojiuent securin. Hew lea-Eackani. fiir insmncc. goes
to extremes to in’ to minimize die cfteci of economic downturns on its srall. l^c

EXHIBIT 16—5 Reasons for the Growing Interest in Spirituaihy

--------------------------------------------------------------------------- >
A» J MAintcrholansT to the pressures ami «rrvM of t turbuleni puce <»f hit.
(Utmonportry
lilest\'lp«—sinjrie-parcftt famines. gecHtrafthw ntobilin*. the tempuran* nature c£
h»hR» nca
u:chnoli>gte5 that errate distaiKY lircuvm —undtfrwurr (he lat'i of onninuniiy many
people (eel and increase* ihe need fin »m«»lvfrrn:w and c^mncvtion.
ABmp Uiln -hmtnKni. reaching mKMih*. are looking for M«neihing in thnr lift?.
F(»nnaU/ed rehgiiHi hasbn t wciricvd hn* many pc;o|ile ami ihey vundnuc to tnoi
fix Mdton m
replatT hek u1 kijth and tn fill a gro« mg (vding of empnnra.
Job drrtuixk tu>'e ma«lc the wurkpiaev di Hinn ant in many (Hxiples livea y«i they
coMWtte »
qur»t)on the meaning of worit.
IIK* desire tn integrate pcfxonal life values whh unv' prulewiiMta] life,
in Dmes of eeonueuc prosperity, more (lenpk ha*« the loinni* tn engage KI a warch
n> tem*h
their hall putemiaL g
 dnwncums throuc^h i
workweeks (sh^i^cd by ail); and Intiger-tenn dcStZ?’?'"'^
3nd buyouts « UiroQph early rttirements
-Pfusl And Openness Spinnial organizations art ch
honesty, and openness. Managers aren’t afraid to adni.t XTt A trust,
ertrentely upfront with their employees, customers and s..^ r ’ **
W-’ctherill .Associates, a highly soccessfiji auto parts distnlnih^ prewdent of
lies here. ..nd cve.yone knows it. We are specific anX
5uirahilin- of the product for our customers' needs even if we tn
^le to derecr any pn.blem""' ’ ’«“•«' nught n.n be

rmolo'*^ EmpoM^rnient I’he hich-triut climarp in erxi". i

.mnbined with rhe de.sire to promote employee learning^and
ageme-n empowering employees to make most work-related decisions. ManageTs^n
,p.nt«nlh based organizations are comfortable deleganng amhoritv to imhviduJ
employee* and teams. li.ey trust their employees to make thoughfftii and rnnscien
dous decisions. As a case in point. Southwest Airline emplovxes-including flieht
attendants, customer service representathes, and baggage handleiv-are encOTra^d
to take whatever action they deem necessary tu meet customer needs or help fellow
workers, even if it means breaking company policies.

Toleration of Employee Expression The final characrerisne that diflerentiates

spiritually based organizations is lliat they don’t stifle employee emotions. They allow
people to be themselves—to express their moods and ieelings without guilt or fear of
reprimand. Employees at Southwest Air, for instance, arc encouraged tn express their
sense of humor on the job. to act .spontaneously, and to make their work fan.

Criticisms of Spirituality
Cricics of the spiritual iiy riiovej^ieiil in organizations have focused or ru’n issues, first
the quesiioii of kgriitnacy. Sped Ilea I ly, do org’anizations have the right TO imptwe
spiritual values on their employees? Second is the question oF economics. Are spiritu-
ality and profits compatible?
On the first question, there is clciirly die potential for an emphasis on sqnri^al-
icy to make some employees uneasy. Critics might argue that secular insrirodons,
especially business firms, have no business imposing spiritual values on employees,
fhi'i criricism is undoubtedly valid when spiniualiry is defined as bringing re igwn
and God into the workplace? • However, the criticism seems less ‘iringing e
limited to helping employees find meaning in their work lives. 5
1‘Sted in E.^hibit 16-5 auly characterize a gniwing segmem of the
’^ybe the rime is right for organizJtions to help employees fmd meaning an p rp
in their work and to use the work-place as a source of community
The issue of whether spiriroality and profirs are although lim-
tainly relevant for managers and investors in busincs-s. , research study by a
'tfd, indicates tJiat the two objectives may be vci y comp ■
"ttKir «,n«iliing firm found that companies thai ,s Aocher study
unproved pi f>ductivity and significantly reduce m fi,r spiri-
that organizations that pn.vide their s,u!|i« also report chat
dnelopineni outjtcrforined those that dulnt.

‘ .1
tart IV The Orpnixatioo System
ipirituafity in oreini^aooiw wa* positively reUwd to c^dvi^ cmpl.,yM '
team perfonnance, and orgiuiizational commitmein. And if you re kxiking for ,
single case TO make the arg:umenr for spirituality, H’S hard to beat Southwest Ait. i
ScutiiwtTii viiiployces have one of the loM-est turnover rates in the airline industry/,
consistently has the lowest labor costs per miles flown of any major airline: it regu,
lady outpaces its eompeutoi^ for achieving on-lime arnvaU and feucst eutttwncr
complaints -ind it has proven itself to be the most consistently profitable airline h
the United States.^*

ORGANIZATIONAL CULTURE
yjiRSUS NATIONAL CULTURE
In places throughout this book we've argueil that national tliHcrenccs^chat is,
national culture—must be taken into account if accurate predictions arc to lx? made
about organir.iuonal behavior in different councnes. But does national culture over-
ride an organuadonk culture? Is an IBM facilicv^ in Germany, for CKample, more likclv
to reflecx German edmicity nr IBM’s corporate culture?
The research indicates dial national culture hxs a greater impact on etnplny'ees
than does their organizadun’s culture?- German employees at an IBM facility in
Munich. tlicrefi>re, will be influenced more by (icnnan culture than by IBM’s culture.
Organizational culture ducb have a great influence on the behavior of people at trork,
but national culture has even more.
The preceding conclusiun has to be qualified to reflect die self-sclecrion dtai
goes on at the hiring stage. A British mu Id national coqvoradon. lor example, is likely
w be less concerned with hiring the “typical lialian" for its Italian ojxradons than in
hiring an Italian who fils with the corporation’s way of doing things. We should
expect, dterefore, chat the employee selection process will be used by rnuldnationals
to find and hire job appliouits who arc a good fit with their organizuiions duriiiiujit
culture, even if such applicants arc somewhat atypical for members of their country.

ORGANIZATIONAL CULTURE
AND THE PARADOX OF DIVERSITY
We briefly mention here a contemporary challenge for maiiagcnt. Socializing new
employees who, because of race, gender, ethnic, or other differences, arc not like the
raajurity of the orgajiizarinn’s members crearei whai wc call z/ir {yrradax fff
Alanageriienr wants new' employees to accept the organization’s core cultural values.
Otherwise, these employees are unlikely to fit in or lx* accepted. But at the same dine,
management wants to openly acknowledge and demonstrate support for the differ-
ences that these employees hnng to the workplace.
Strong cultures put considerable pressure on employees to confirnn. They liiwt
the range of values and stydes that arc acceptable. Obviously, this creates a ddcmnia*
Organizations hire diverse individuals because of the altcmadvc strengths these
pie bring to the workplace, yet tJiese diverse behaviors and strengths arc likely co
diminish in strtmg cultures as people attempt to fit in.
.Managernent s challenge in this parad<»x of diversity is to hsdanev two confliedng
gods. Get em^oyees to accept rhe organ izadem’s dominant values and encourage d*
 Chapter T«
OrgiaraadwMlCnlm^
c of diffcrcn™.- -loo m..ch to investiture rites is likely tn
create
2- ■‘n-vng.hs ihur pcopk of diffvrent backgroun.U
bring to the
;^;ani^."'‘’'’-
There seems to be little doubt that culture has a strong influence on
efflpl<i>« behavior But what can management do to design a culture that molds
pp,p)oyce5 ill the wAy iTiimagcnivni wants?
When an orgamzation js pist being established, management has a great
acai of influence. There are no esuhlishcd traditions. The organiration is stnall.
There arc few, if any, sulx.-ultiin;s Everyone knows the founder and is directly
touched by bis or her vision ol what the organization is. Not surprisingly, under
diese conditions management has the opportunity to create a culture that will
best faeilitatt ihc achievement of the organizations goals. However, when the
organization is well csiabli.shed, so too is its dominant ailtutc. (iiven that this
culture is made up of relatively stable and permanent charactcrisiki, it bcaimes
ven' resistant to change. It took time to fonn, and once established, it tenets to
become entrenched. Strong cultures arc particularly resistant to change because
employees liciomv so coiiiinitted to them. So. if a given culture, over time,
becomes inappropriate to an organization and a handicap to management, there
may b« little inanageiiietit van do to change ii.espcriallyin the short run. Under
[he most favorable conditions, cultural changes have to be measured in years, not
weeks or months. The “favorable conditions" that increase the probability that
cultural change can l>e successfnllv impiemenied are the existence of a dramatic
crisis, turnover in the organization’s top leadership, an organization that is both
yxiung and small, and a doiiiiiianl culture that is weak.
 w

Organizational Change
•*

and Development
After reading this chapter, you should be able to

1. Oescribe forces that act as stimulants to change

2. Define p/annetf change

1 Summarize Lewin's tliree-step change model
4. Explain sources of resistance to change
5. Describe techniques for overcoming resistance to change
6. Explain the values underlying most organizational development (00} efforts
7. Describe a teaming organ 'zafion
8. klentrfy symptoms of work stress

9. Summarize sources of irvnvdtion

1#. Define knowfeetge manaiement and explain its importance

'^his chapter is about organizanonal change. We descrilie ens-ironmcnwl fixoes

A. that are requiring managers to implement comprehensive change programs.
compare two views on change. We also consider why people iind organizations often
rwist change and how this resistance can be overcome. Finally, we present the concept
o organizational det el opmen t as a sA'stemwide approach to chance and introduce sev-
eral conteinpf,rary issues in organizational change.

FORCES FOR CHANGE

rcouir^orranTT9r^”'^'**i"’* dynamic and changing environment th*
acting M stSulanB^i chai^'‘
 Ch^ter 17
Org&cuwkm&t Caangt Dentofmtmt
gXHiBJT 17-1 Forces for Chang

V
I
F’nrce BxaniDlrv
of’’He Morkforre .MGI€ eiiltural .Iivtrsii5
Inrrc^st in

TcchnilfojC’ Hster and cheaper computers

^c« nichilc coniiniinicatiiin devices

EcoTcniicsniM’ks Clwnge.s in oil pnceai

J fell of
Oecliin- in rh© Viilut o| the
I
Comped b on GIOIMI compelirfirs
Mergers and cnnsolidaliuns
Cnnvth oF e-viimnipi'w
5e<'iaJ (fend:> Inrcrnet cHai rooms
Piercings, and tanoos among
wcni^rs
World polhir*; Incieased
Black rule mtere-ii
of SouthinAlrica
urban living
Opening of markets in China
The war on terrorism fbllcM’ing')/!
l/Ol

Throughout this book, we’ve discussed the changing of tbevorkfirce. For

insU3icc, almost every’ organiiadon is having to adjust to a muluculcural cnvironiucin.
Human resource policies and practices have to change in order to attract and keep this
more diverse workforce. And many companies are having to spend large amounts of
money on training to upgrade reading, math, computer, and other skills of employees.
As noted in Chapter 14. is changing jobs and organizations. For
instance, cuinputers are now commonplace in alnww every* oqjanization; cell phones
are being increasingly perceived as necessities by a large segment of the popidatic^,
and process reengineerin? prop-arns are eliminating wasiehil and redundant jo ta
We live in an ^‘age of dlseontimitty/’ In the 195<)« and 1960s, the past was a
pretty good indication of die fonirv. tomorrow was esseiiiially an extended trend fine
bom yesterdav, T'hat’s no longer true. Beginning in the early !
uvemight quadrupling uf world oil prices, cfflOTBzir yiorii' have connniie lo ' _
changes on organizations. In lecent years, foi snsiance, oil pntes a^e
eantly increased; new dot-ram businesses have been create . turrje tens j |j j
of investors into overnight millionaires, and then crashed; and the Euro has
10 percent against other major world currencies. are as likely to
,s changing. In today’s global ,XnT X"J. nL
come from across the ocean from acros^^ town. g both tradiiionul
h necessary for established orgaiuzkitions to defon entreprenctinal firms
competitors who develop new products and sernteschange in
*Kh innovative offerings. Succcsshil organizations of developing new
f«ponse to the coinpetidon. Thej^H be fast ’‘U oji short production
pmduas rapidly and getong them to market quic y. products, in odier words,
J.on predvK. .Jiles. and an -e-ng snaam of new
be flexible. They’ll require an equally flexible ana P-
On adapt to ramdiy and even radically changing ra
frtif TlwO»f»h«WBSjM« %4
nrndt don’t remain -Mtie. F«r in^ance, in cnntr«t «. ,u« JO y«„
•SWM/ m>* .harinff inforiiifliinn in Internet chat rmims; lecnagen
,-nX7n?ly ornamenting their iHxlic. with piercings and tanons and many
LXXd (ienention Xvrs arc leaving the suburbs and moving U. the au«.
w" have aretied strongly, thr..uplio..t this htK.k. lor the .mpurunce .rf ««ng
nrcanizational iKhavi-r ((IB) m a global cs.ntexi. Business sch-.b have been preach,
inga giobal ,Hirspcct,vc since the early I'^SOs, bft no nnc-mrt even the strnng«tp«^
ponents of glol«.lizaiion-c.mlil have imagmed how u-o^ change m
.-ecent vean A few examples make the |v.int; the fall ol dm Berlin Wall, the tcunifica-
tNNi c/(Knmny, IraqA invxMfUi of Kuwait, and the breakup of th<! Soviet Vnioii. in
just the pasi decade, dianK^-> in world politics have increased business o^nKiTOiniuesm
South Africa. (‘Inna, and both South and N<»rth Korea.

JklANAGlNC; PLANNED CHANGE

A group of housekeeping employees wh<» work fur a small hotel confronted the
owner: “Il’s ven* hard rbr ny>st of us to maintain rigid H-to-S wtirk hours,” said their
.sjM»kesw.’onhin. ‘’Each of MS has significant family and personal responsibilities. And
rigid hours don’t work for as. Were going to begin kxiking for someplace else towwk
if you don't set up (lexibk work hours.” The owner listened dmughtfully to the
group's tilrimamm and agreed to irs request. ’l*he next day rhe owner introduced a
tlcxnmc plan for these employees.
A major automobile nianufacrurcr spent several billion dollars to install state-of-
the-art rolnjcies. One area chat would receive the new equipment was quality control.
Sophisacated coinpiiter-cuntroUed equipment would be put in place to significantly
improve the company^ ability’ to find and correct de feci s. Since the new equipment
would dramatically change the jobs uf the |wople working in die quality conrrol area,
and since management anticipated considerable employee resistance to the rew
equipment, executives were developing a program to help |K'ople lieawnc familiar
with the equipment an<l tf> dea! with any anxieties they might be feeling.
Both of rhe previous scenarios are examples of change. I’hai is, both were ton-
eerned with making things different. However, only rhe second scenario described A

ff/i/rmeJ .Many changes in organizalions are like the one that ixxnji rcd at the
hotel—diey just happen. Sonic organizarious treat all change as an accidental otvur-
rencc. We’re concerned wixli change activides that are proactive and purposeful. In
this chapter, wc addre^*^ change as an intent io naJ, goal-oriented activity'
What are the goals uf planned change* Essentially there arc rw'O. First, it seeks
to improve the ability’ of the organization tn adapt to changes in its environment.
Ses’ond, it scek*s to change employee behavior.
If an organization is co surv'ive, it must respond co changes in its environment.
HTicn competitors iiuioduce new products or sendees, govcmniciu agencies enact
new law's, important sources of supply go out of hii.siness, or similar environmental
changes take place, the organization needs to adapt. Efforts to stimulate in»iovam)n,
empower employees, and introduce work teams are examples of planned change activ-
ities directed at responding to changes in the cmironmcnt
Since an organization’s success or failure is esscndaHy due to the things that
employ ees do or fail lo do, planned change also is concerned with changing the behav-
ior f»f individuals and grou|» within the oi^aniz^tion. Later in this chapter, we renew
 apter 17 Org,ni„hwal i
rtchniques that organizatiws tsin use to get pconle m kok «*'i>Tn.etu
they perf'in" inwrjctinn with others 'n die tmles
Uho in nrgaoizadoiis is responsible tor niAnaffiiitr^l..
change agents. Change agents can Iw nianagers^or noniiiJna'S^''^^' «
or outside consultants. For ,tia,or change «npl«yees of the
y s’l'l hire the services of outs,de co. Jitants rfpro
Because they are from the outside, these individuals eaj offer an o J . ““'stance,

unas-ailablc to insiders. Outside consnltans, however are d.s^Sw

uimally have an inadequate understanding of the organization’s hism^

operttingprcKcdures, and personnel. (hjvsi.le constilunr; ak. mav k nm.r

to h« vnti, die re,KTvu.ssK>ns after the change is implemented. In contrast, intend

staff.spec,ahsb cu managers, when aenng as change agents, .nay be more tlioughtfu! (and

p(«sibly more cannons) because they have to live with die consequences of their actions.

Tvvo VIEWS OF C:HANGE

Simile 1 The organizauon is like large ship traveling across the calm Mediterranean
Sea to a specific port, 'fhe shipk caprain lias mAde this exact nip hundivds «f times
Ixdbre with rbc same cre«-. Ever)' once in a while, however, a sxorm will appear, and the
crew has tn respond. 1 he captain will iihikc the appropriate adjiismicnc—ihai imple-
ment changes—and, having maneuvered through the storm, will rcnirn to calm waters.
Impkmairing change in organizations shnnld therefore be seen a$ a response to a break
in tJiC Status quo and needed only in occasional siruanons.

Simile 2 The organization is more akin to a 4O’ftxit raft than to a large ship. Rather
than sailing a cairn sea, this raft mu si traverse a raging river made up of an uninter-
rupted flow of permanent white-w-ater rapids. To make tilings worse, the raft is
manned by 10 people w’ho have never worked together, none have Lravcled die river
before, much ol the trip is in the dark, the river is dotted by unexpected turns and
obsudcs, the exact destination of the raft is not clear, and at irregular frequencies the
raft needs to pull to shore, where new crew memho'S arc added and utlicrs leave.
Change is a natural state and managing change is a continual process.
These wo similes present verj- different approaches to understanding and
responding to change. Let’s take a closer look at each one.

The "Calm Waters" Simile

Until vro’ recently, the '‘calm waters^’ snnilc duininatcJ tJ.e thinking of
agers and academics. It’s best illustrated in Kurt LewinV three-step esenp ,
change process.- (See Exhibit 17-2.) .According
“'’Attjfjjgthe status quo, changing to a new state, and

J
s
nr The OtpaiMMM* 9>*m
► TTic s»tw« quo cm he considered an eqidlibrtom
state. Mtwing front
nnfrStg. uh^h cm. he achieved m one of way.:
*
1. n.e.AiwiK/ora/.whichd-n.-vrbehaviorawjv from the sunn quo, can Se increasna,
J. I’hc two approaches can be
2. Theunfreezing
Once rwwmwgyiwrt, whichdCTomplishctl.
hxs been hinder .n..vc(neni
the fr-«J the itself
change exisdnprancquilibnum, em b,
be implemented.
clccreaACfl.
However, the mere uitroduction of change does not ensure rhat it will lake hold.Tl^
new situauun ihcrdare n«xnh to be rrfi-ozen it can be susuined over unic. Unless this
last step is attended there »s a ven* strong chance the change will k shondivcdaaj
emplo>Trs will revert to the previous equilihriuin slate. The oliiectivc of refreenng^
then, is nj stabilize rhe new situation l»y balancing the driving nnd rtsttainiiig fijrces,
Note how I,twin’s three-step prcxxss treats change as a break in the organiza-
don\ e(|uilihrium stare. The sranis quo has been disturbed, and change is necessary to
establish a new equilibrium state. This view might have been appropriate to ihe rela-
tively calm environment that most organizauons faced in the 1950s, 1960s, and varfy
1970s. But one can argue diat ''calm waters’* no longer describe the kind of sexs that
mana gel's currently have to negoti^^te.

The **White-Water Kapids” Simile

The ’’white-water rapids” simile is consisienr with the disciiwicin in Chapter B irf
uncertain and dynamic environments. It is also consistent with the dynamics asscxriatcd
with going from an industrial society u> a w'orld dominated by infornution and ideas,
To get a feeling for wdiat rnanaging cha/igc might be like when you have to cootm-
ually maneuver in uiiintemiptcd rapids, consider attending a univcrsiiy that has the W-
lowing curriculum. Courses vary in length. Unfoitunalcly, when wu sign up, yxjudon*!
knf>w how long a course will last. It might go for 2 weeks or ?0 weeks. Furthenuore, the
insinictor cm end a course any time he or she w anps, with no ]>rior w arning If chat isn't
had enough, the length uf the class changes each time it meets—sometimes ir lasts 20
mjiiuTcs, other times it runs for .1 hours—and drtenninauon oftidien die next ria’s niect-
ing will cake place is set by the instructor diinng tliis claw. Oh m. there's one more thing.
Ihcexamsaieall unannounced, so you have to be ready for a test at any tune.
To succeed in this university’, you'd have tn he incrctlibly flexible and able to
respond quickly to every changing condition. Students who were overstructured.
rigiii. or slow on their feet wouldn’t .survive,
A growing number of managers are coming to accept diat chetr jrJi is murii like
what a student would face in such a irnh-ersity. Swhility' and prcdittaWlity done exist.
Nor are disruptions in the status quo only occasional and temporary; followed by* a
return to calm waiurs. Many of today’s managers never get out of the rapnls They’ face
constant elungc. bordering on chaos. ‘Fhese innnagei's arc being forced to play a game
tlicy VC never pJayal before, governed bv rules that are created as the guiiie piogrcjscs.

Putting the Two \^ews in Perspective

Does rt cn* manager face a world of constant and chaotic change? No, but the set of
managers who don’t is dwindling rapidly.
Managers in businesses such a.s womens higivfashion dorhing have king coft-
Ironu^ a w<»rid that kxiks like white-water rapids. I'hey used tu kxik with envy it
 X Chapter 17 Organiorionai t3,a..w «u n-
c«-n«rp.ro m md^r.« sud, „ nun«6,«„rt„.r nil ,,
^.(bo(l renauranc, office equipment, publishin«r banking, .•r
rba. nugbr have ix.en true 30 or 4<,, J ,.«lKtaWc emi-
Fov orgnntzanons nxby can near change as rhe ' J 7*^ 7^
peatefti! w 'TM. Even these few dp so ai great risk 'Ik. ‘^’^'bance in an nth-
<«-gafii/Jti..n ..r ii-, managers to be aimplacent VI.Kt ^^Wng «Jo bst *
'..r
,^rf«n IKtnonths. ArtrmsucbasPcop|cExJkss^;;Sr^^^^^^ •,
t
’ tj,e nKxiel “lieu IrHif jinn, then went l^nknipt a short ti™. I 'I

‘If-' ’in’i broke, don’t fix it" no longer applS t'

“Jf ■' broke, you jus. haven’t kx,ke.l hard enough EU r!anp?a>

RBSISTANCE TO CHANGE
*' _^x:.. Wft.. —^'Hij
One of the mr^t well - dex umenud findings from studies of individual and oreanfra
oeW behavior is that orgajiuadons and their members resist change. In a this
resistance is p^itjvt. It provides a degree of stabiJity and predictability to behanw. If
there weren’t sone resistance, organizational behavior would take on characteristics of
ch^rtic randomness. Resistance to change can also lie a source of functional conflict
Fur example, resistance TO a reorganization plan or a change in a product line can sdm-
uljrtc a healthy debate over the merits of the idea and result in a berter decision. But
ihcre is a definite ilown side to resisrance to change. Jr hinders adaptaiioji and progress.
Resistance to change doesn’t necessarily surface in standarditxd wav-s. Resistance
an be overt, implicit, ininicdiate, or deferred. Iris easiest for maoagcnicntto deal with
resistance when it is overt and immediare. For instance, a change is proposed and
emplovees quickly respond by voicing complaints, engaging in a work slowdown,
direatening to go on strike, or the like. The greater diallengc is managing resistance
that js impliat or deferred. Implicit resistance efforts are subtle—loss of io\-alt) to the
organization, h^s of mod vac on to w<jrk. increased errors or mistakes, increased absen-
teeism due to "sickness”—and hence difficult to recognize. Shnilariy. deferred actions
cloud the (ink between the source of the resistance and the reaction to it. A change may
produce what appears to he only a minimal reaction at die rime it is iiudated but sur-
faces wccU, mondw, or even vean later. Ora single change, in and of itself, has little
iinpa. But it becomes ±e straw that breaks the earners back. Reactions to c^ge can
build up and then explode in some response that seems totally out of prc^inion to c
thange action it follows. The resistance, of course, has merely licen deferred and stock-
piled. Wiat surfaces is a response to an aecumubrion of changes.
l-ets look at the sources of resistance, tor analytical puqK?ses, we \e
^hem hy individual and organizational sources. In the real world, the smirces oft
<ncrtap.

Individual Resistance
Individual «.urces of res.sance ro chanf.^ reside in bxsie hunun vharmensucs such
« five reasons why

f*^veption5. personalities, and needs. The tollowi.ig su.nwanres ..

•'•dividualh inay resist change.

Kvery day, when you go to work

and streets? Pn.bablv. If you’re like most people, you hnd smg
n n-gubrh
The Oiganieetion
Syuem
As hu.«un beings. -e’« crw«n-» Ufe « cmnjes enou,^,; ,.4^
need » consider the hJI range of options for the hundreds of deacons we
make esxr, day. To c<jpe vrith this complenn-. we all rely <^>'ah«s, or progranunji
r«Doiiscs^"'hen we arc crinfronted with change, fhw tendency to respond m 0^
accusomied ua« becomes a source of resistance. So when > our .lepartmeni n
a neu crffice’building across to«Ti, H means you re bkely to hav e to change ma,,
habib- uakma up 10 minutes earlier, taking a new set of streets to work, finding a
parking place, adjusting to the new office layout, develofung a new lunchtime
uid w ua.
Security Per’ple who haix a high need for scenritj- are likely to resist change
because it threatens dieir feeling of safely. When Boeing annoonces it’s laying off
JO.OOO people or Ford introduces new robooc equipment, many employees at
firms may fear that their jobs are in jeoiardy.

Economic Factors Another source of indiudual rcMsrana is concern dm changes al

lower one s income. Changes in job tasks or catabli^ed work mutmes also can arooje
economic fears if pwiple are coocemed they won't be able to perfewm the new r ',
nurrines co ihcir previous standards, especially when pay is closeb bed to producTh5ty.

Fear of the Unknown Changes subsnnire ambiguity* and uncertainty tor the
known. And people in general don\ like the unknown. The ^ame applies in employ,
eca- Ff. for the incroduchon of a quality management pn>gram requires tta
production workers learn staosdcal process control techniques, some may fear they’ll
be* unable to do so. 'Fhey' may. therefore, de> elop a negative acdcude toward quahn
management or behave dy*sfunctiana!K if required to use stausdcal techniques.

Seleed^c Information Processing As wc teamed in (Chapter 2, individuals shape

their world through their percep lions. Once they have created this world, they resist
changing it. So individuals arc guilty of selectively processing infonnadon in «dcr in
ktxp their pcrcepdoas intact. They hear what they’ u ant co hear They ignore infor-
mation chat cluUenges die world theyve CTeated. The prtxiucnon wor^n who are
faced with the introduction of quality nunagemcni may* ignore the argumcnis ibcir
bosses nuke in explaining why a knowjedge of statisdes is neccs-sary or the potential
benefits rhe diangc uill pros ide them.

Organizational Resistance
Organizadofls, by Aeir very nature, arc conservative. Hey acmxly resist change. You
don t have to look for to see evidence of this phenomenon. Government agencies want
to continue doing what they have been doing for years, whether the need for their sef-
changes or remains the same. Organized religions arc deeply entrenched in their
history. Changing church doctrine requires great persistence and padentV’
Fducadonal institudoxis which exist to open minds and challenge tsuWished doc-
mne, arc rhemsdves extremely resustanx to change. Mosr school systems are using
essenoally die same teaching technologies today as they were 50 y ago. MOM busi-
ness nrms, too, appear highly resistant to change. Six maiur sources of organization^
resistance have been identified.^

Structural Inertia Organizations have buik-in mechanisms to produce siabiliiy-

tor exampl^die sclcvoon pnK*ess sy-stematically selects certain people in and cerw®
petpie oui. Training and other siidalizadoft techniques reinforce specific rtde requtf*-
 Chapter 17 Organutti
gnJ skills. FormaliMtion provides job descrimi<.n . ^<’pnwnt
^pbrtTCS r.. 1 ndes, ami procedures fi,r
The are hired iiny an ..rffatiiMtin,. ,rz.-k
^jpcil JirccU’d lo behave in ecrcaiii ways VVhen^n'*''**”'-^'
^th cha.>ec, this striK-fural inertia acR as a counterbalance
ijmited F«'tuh ’'f Changes Organizations arc mad,. , ''
You can’t change one without affecting the others Fr r " subsys-
,Hanges the tc-cbnoJogical processes without simnltaneouslv .n^ig
^Vstn.crure to matclu the change in technology is \ing the organiz^t-
noilikelv to be acc^tedToTw
ittd changes m subsystems tend to be nullified by rhe larger s^^tem.
er f^v'stcni.
Group Inertin Even if individw.ls wart to change their behavior, groupnorn« may
a constraint. An mdmdna union mcn.ber, for instance, may bewiling to aceXt
the changes 11. h.s |0b suggested by management, but it’union norms dictate tesistiny
any ujiibierrtl change made by managcmeni:, he's likely to resist ®

to Expertise Changes in orgrimzational patterns may threaten the expertise

of 5|>eciaiized gn>ups. The recent move by some vompanies to outsource many of
rfidr human resource activities—such as training, dex’elopmerr of pay plaits, and ben-
cfiis adnunistrflcon—has been resisted by many human resource departments. H’hy?
Cccaustf tliis our^ioiircing i.'? a threat to die specialized stills held by people in HR
departments.

Threat to Established Power Kektionshtps Any redistribution ol decis ion-

making authority can threaten long-cstablishcd power relationships within rhe or^n-
ization- The introduction of parucipaiivc decision making or self-managed work
tearos are examples of changes that often are seen as threats to the power ol supervi-
sors and middle managers.

iTireat to Esrabiished Resource Allocations Groups in the organization that

control sizable resources often see change as a threat. They tend to be content with
the wav things are. WiH die change, for distance, mean a reduction in their budgets or
a cut in their staff size? Those whu most benefit from the current a!location of
resources are often threatened In’ changes that may affect future allcKUtions.

Overcoming Resistance to Chang

V\Tule there are numerous forces that act to resist change,
thange agents can take to lessen this resistance. The foUowng ne y ig
of them.
Communication Resistance can be reduced throu^ ^^unv^^that the snuX:
hdp them see the logic of a chunK^.

of resistance
facts and any lies in misinfonuation
misunderstandings nrcleared
arc p’>or a is inadequate conunu-
^ppniach M'ork? It does, provided that the source o res mutual trust
'^canim and that inaiiagement-employec relations arc c ,iniikelv to succeed,

■nd credihilin'. U those conditions do not exist, the change «

*‘»rtici|Utit>n People who panicipate in «Ten‘t involved. And it's

'ttonglx commined to the final outcome t . which they paracipated.

h.r individuals to reais: a change decision m *h.c >
The Orgsftiation System ?3
befiire a change i» made, th.-se oppo^eH can be hnw^t int.. the decision proc«,.«
the cxi>ert-=.e to make a meaningful contnbulion. their invoK,.
nicm ran reduce resistance, vbmin romniiuncnt, and increase the quality „f o*,

decision.
Provide Support Change agents can offer a range o siippnmve efforts to redaa
resistance’ ^instance, showing concern and empathy by prxuc.ng active listening,
offering employee counsci.ng and therapy, or providing new skills rraming.
Reward Acteplance of Change As we discovered in Chapters 2 and S, in onr dj».
nwsion of karning and behavior modification, rewards are a powerful force in shaping
behavior. Change agents should, tlicrefore. provide employees widi attractive tewmis
that are coniingcnr on an ejitancc of change. These rewards can range from praise and
rccngninoTi »> jay incrcasc^i or pruni<»nons

Create a LeamhigOi^ntzadon Resistance is less in an organization that has been

incennonally designed uith the capacity to continuously adapt and change. We call
this a teaming ui^nizatinn? .As shown in Exliibit 17-3, learning organizations have
five basic characteristics. People put aside their ok! ways of thinking, karn to be open
with each odier. iirnkrstaiHl h<iw their organization really work^, form a plan or visioii
that evcQ'one can agree upon, and then work together co achieve that vision. Seine
examples of learning organizations would include FedEx, hord, General Electric,
Motoroh. and Wai-Mart.
What can management do co make their firms learning organizations? First,
it needs co aiake explicit its commicmcnc co change, innovation, and cunrinuous
improvement. I bis coauninnenr becomes pare of the organizadons strategy'and
vision. Second, the organization’s structure needs to be redesigned to reduce
boundaries between people and to incTease interdependence. This can be achieved
by fattening the .structure, eliminating or combining departments, and increasing
the use of cross-function a I teams. Finally, the organizadon’s culture needs to he
reshaped hj support continual learning. Risk-takmg, openness, and growth should
become basic values. I’hat means rewarding people who cake chances and make
misukes. ,\nd management needs to create a cliliutc that brings paradoxes and dif-
ferences OUT into the open. 1 his requires encournging and supporting functional
conflict.

EXHIBIT 17-3 Characteristics of a Learning Organization

There exists a shared which »r\TP>’onc agrees on

1.
2.
Peripk discard dinr old ways of thinking SIHJ (be srainbrd
r«r(iw»d<yw!efcfsnWitfpn)b-
Uiniiordom^thdridja
3,
.Menilten think of al] orjanizacicnal processes at-faviocs. Functions and inunctions
witb the
4. awironment pan ot« system of inftxreki iimstups
Fco^e Of^nly communicau with each other (across vs-rtini end borironut
boundaries! with-
$. out kar ol cnticnm or punrshmau
«<! depanmenol «o -
or*
RM. Sw<».
rogeUief me Oucintat
«. adueve (Mewshared
the orpnizanony ’ib*: Douuetfm
vi.ion 14901.
 Chapter 17
Orgmiieckaal
V^NAGING CHANGE THRO15CH
ORCANI^'^'I
xJ ‘<^
mARajciog NAL
change DEVELOPMENT
wi^uld complete whhouv including organiit-
aJ Organiiaoonal dcrelcpment (017) is not an easily defined dn-
including organiu-
Il^conctp^ vneompas^ a aillecticn of phnned-changc
* ntion^ humanistic-dcBwnnc vahiCs that seek lo 5 ri ttyt an easily defined vn-
int^ , ,1....:. ..^...'. ........... ” ' Ag.
Tlie OB pAvad^gm values human and organ) za non a)
^onaS eliec»vcne.s and employ., w.ll-bemg,
1 i spirit t»f mquin*.' The change agent
Tli. OB [wra.li^ values human and organizunonal
es««/* ^.,,..1..-:. growth. collab<.rative
c^’Uahuration. andsuch as power,
Concepb
^Cipativr P1.KCSSCS, and a spint of inquiry. - The change agent msv l,e directive in
riiv vonuol. conflict, ai\d w>etcion art held in rdaflvely b's
however, ihcrc is a sm>ng emithasis on a.llahorarion, c;
following briefly identifies ihe unflerlvi
<’ esteem aJiMmgOD
1. ying values in mmt OD
Individuak are pcaen.ed a. being responsible, ronseienbous .,„d
caniig. They should be treated with dignity and rcspccr.

2. 7iW .>r,.! «,pp^. The effective and heaJ±y organization is characterized bv crust,
authennem', openness, and a siipporuve cliinatc.
3. .'^uatizathn. Effcciire organizaiions deemphasizc hierarchical authority and
control.
4.
Ccnfi fMfutfoti. Problems shouldn't be twepi under the rug. They should be openly
confronted.
5.
Fjrtth'tfurCion. The more ±at people who will he afTected by- a change jrv involved m
the dccisjons surrounding that cliange, the more they wiU be conuuiiicd w iitiple-
menu ng those dccuioos.

VVhai are some of the 013 techniques nr loierventions for bringing abour
change? Ir ihe following pages, we present fivx intcn'cncons that change agents
might con si tier using.

Sensitivity Training
It can go by a variety’ of names—laboratory training, sensirivitj’ training, encounter
groups, or i’-groups (training groups)—but all refer to a method of changing behavior
dirougfa unstructured group interaction.^ Members^ are brought together in a free and
open environmem in which panic!(*ants discuss themselves and their inienivtive
IM’ocesses, loosely directed by a professional l)ehavdoral sdenrist. The group is
<>rieiiicd. which means that indmduals team through observing and participating
rather than being tuld. Tlie professional crriics die opportunin- for panieip»nis> w
express *eir ideas, beliefs, and attitudes lie nt she does not accept- -w fact. ovcru>
reiects—any leadership rule. ... j .,....,P«.PSS
The ohjcciives of T-gnmps are to provide the subjects wi uicreA. c .
of their own behasior and how others perceive them, greater j^yght
K'f "f Others, and increased understanding of poup ,J• greater
delude increased ability to empathize wih oihcis, imjirosc -„n,vcd conflict-
’^Venoc. increased tolerance of individual diflcrences. an p
^**»luti«)n sluIK. rhen the successful
cohesi»vness, andT-a
If individuals lack awareness of how others percen ' „ohesi»vness, and a
can effect more realistic self-percepnons. grea«r gro p
 «wtirrion in d>‘sftmcttonal tnurpcrsonal conflicts. Furthermore, it can ideally raarft
inteerotion l>etween the Inditidual and the organization. In practice, howc^'
T-ffioup5 have htui declining in }>o|«ilarity o\-er the past decade or two. UTiy? 0^^
rcawn is probabb’ th®^ intnisive nanire r»f the prtKcss. Many managers arc uncortifc^^
able witii ii provTS* that as-ks pjrticip;int> co dischrse in forma lion themselves anj
rhat can threaten an employee’s ^clf-inmge. Second, OD efforts in recent years hav«
moved away from emphasizing individual Iveliiip and focused more on issues related
to tinproving work processes .mil group performance.

Survey Feedback
One tool fijr assessing attitudes held by organize! non a I memlwTS. idcndlnng discreph
ancte* among tiieinber options and solving these ditYercnces is the survey fec^
Imck appnurh?
Even’one in an organiratum am participate in survey feedback, but of key
importance is the organizational ftmify—the manager nt any given unit and those
cinplovees who reptjn directly to him or her A questionnaire is usually completed bj-
all members in the organization nr unit. Organization members maybe asked to sug.
gest questions or may be intersiewed to determine what issues arc relevant The ques*
uonnairc typically xsLs members for their perceptions and attitudes on a broad range
of topics, including decision-making practices; communicanon eftectivencss; coordi-
nation between units; and satisfaction with the organization, job, peers, and their
immediate supervisor.
The data Iroin this questionnaire are tabulated with data pertaining to an indi-
vidual’s specilic “family'” and to the entire organization and distributed to employ^ecs.
These data then l)ccome the springboard for identifying pnibiems and clarifying
issues that may be (Tearing difficulties for people. Particular atrennon is given to the
importance of encouraging dismssion and ensuring that discussions focus on issues
and ideas and nor on attacking indinduals.
Finally, group discussion in the survey feediwek approach should result in mem-
bers identifying )K>s$iblc implications of the questionnaires findings. Arc people lis-
tening? Arc new ideas being generated? Can decision making, interpersonal relations,
or job assignments be impnwed? Answ^ers to questions like these, ir b hojied, 'till
result in the group agreeing on commitments to various actions that will remedy the
problems that are identified.

Process Consultation
No organization operaie.s perfectly. Abnagers ofren sense that their unit’s ixrfor-
mance can be improved, but they’re unable to iJentily what can be improved and hu*
it can lie improved. The purpose of process consultation is for an outside consultant
to assist a client, usually a manager, to yxrccivc, understand, and act on pnx.*ess events
with which he or she must deal.’*' These might include work flow, jnfi>mul relation-
ships among unit members, and fonml communication channels.
Process consultation (PCJ) is similar to sensitivity’ training in its assumption that
organizational effectiveness can be improved by dealing with interper^HmaJ problems
and in its einphxsis on involvement. But PC is more task-dimted thw' sensitivity
training.
C^suiuntK in PC are there to give the elieni 'insight* into what is gning uo
armnd hint within him, and between him and other people.^’ITiey do not soke 4*
A,
 nrwni/a-.i'iii'' problems. Rather, the consultant is a nruid.^ „ L S dUev
•aiVx-ss to help the client solve his or her own pttddems ’’ *e
’ The cmsultanr worb with the client in
jniprovenienf. The emphasis is on '‘joirtly” be^-r- - ’
proce-sses within hb or her ludt that can be co„ri,iualk\dled
eensulvint is gone. In add.nnn, by having the clieni aetivek
«n long aftcj.
diagnosis and the Jeveiopment of altcrnarives, tlicre will lie '
ri,e pmeess and the remedy and less re.sistmce tn the action ^la.i chosen y parncipate in both die
Impiriandy, the process consultant need not he an exrirt: i v greater understanding of

Ur problem that is identified. The consultanfs CApenise 11*^^^. !,!^ "^

Hoping „,,p„™hip. ,f
tnowW outside the clients and consultant's expertise, the consultant hehs
dient tn hKate such an expert .and then instructs die client in how to get the mS out

of this expert re'^nurce.

Team Building

Aswe’v-e noted in niimermis places throughoul this bonk, organizations are increas-
ingly relying on teams lo accomplish work tasks. Team building utihzes high-
interacnon group activities to increase trust and openness among team members.i-
Team building can be applied within groups or at the intei-group level where
activities are intcnlejXTiiienr. For our discussion, we emphasize the intragroup level
and leave intergroup development to the next section. As a result, our interest con-
cetns applicaiions to organizational Families (command groups), as well as to commit-
tees, project teams, self-managed teams, and task groups.
Nor all group activity’ has interdependence of tunctions. To illustrate, consider a
football team and a track team:

AlihOugh members on both teams are concerned v.-irh rhe teams total output they
funcuon differently. The football team’s output depends synergistically on how
well each player does his parriedar job in concert with his reammatus. The quar-
terback’** performance depends CMI ihc performance ol his linKmcii and receiver's^
and ends on how well the quarterback throws rhe hall, and so on, Ou the other
hand, a track team’s perfonuance is determined largely by the mere addirion of the
performances of the indhddual members.’ ’
Team building is applicable to the case of interdependence, such as in footM
objective is to improve coorHinative efforts of members, which will resu t n
h
r

’wreasing the teams performance. .. . .ji di>vel-

The activities considered in team building typically indude
Went of interpersonal relations among team members, to « -Ijujlj.
"'embers role and responsibilities, and team process analysis. Ot co
Jpg may emphasize or exclude certain activities teunU? confronted,
^^clopment effort and the specific problems anyone members w
®«Kally, however, team building attempo, to use high interacuo g
iTust and openness. attemut to define the goals
It mav be beneficial to begin by having „erceptions of what the
*«nties of the team. This will bring m die surface diffe 1^^^

purpose may be. Kolhjwing thi.s. and achieving its

’>«K*-4i.!7effectivx is the team in strucn.r.ng pn«nties

ThebrgaciBitwn Sjww
Thfe Md identily powndal prohl«n areas. This self-crin.,ue d,.c««ion of
u ..nTdone with member, ..f ihe total team present or. when Uq
-a interchange of views, may inWally take place ,n smaller poups foU
lowed m bv the shariiie of their findings with the n>ta3 team _
iSmi buikline can also address each member’s role on the team; carh role can be
identified nnd danfied. Previous ambiguities can be brought tn the surface For some
individuals it mav offer one of ±c few opportunities they have had to think thnnigh
thonHighly what iheir ,ob is all about and w hat specific tasks they are etpected to carry
out if the team is tt> oponiize its eflieiTiveness.
Sriil another team-buiMing activity can be similar to that performed by the
process wnmiranr—that is, to analyze key prtxcsses that go on within the ream to
ideniiiy die way work is performed and htiw these processes might be unprosed to
make the ream more cffccrivc.

Intergroup Development
A major area of concern in OD is (he dysriinciional conftict that exists between
groups, As a result, this has been a subject to which change efforts have lieen
directed.

Intergroup development seeks to change the attitudes, stereotypes, and per-

ceptions that groups have of each other. For example, in one company, the engineers
saw the account iiig departincnt as composed of shy at id conservative lyjws, and the
human icsounxts department as having ,i hunch ot “ultra-lilx:raIs who are more con-
cerned that some protcctetl group of employees might get the ir feelings hurt than
with the coiui'Kiny making a profit/’ Sudx stereotypes can have an obvious negative
impact on the coordin stive efforts between the departments.
Although dicrc are snxral appnwehes for iinprtndng intergroup relations, otw
of the more popular methods emphasizes problem solving.In ibis method, each
group ineers independently co develop lists of its perception of itself, the other group,
and how it Iwlievcs the other group perceives it. The groups then share their lists,
after which similantics and diftciences arc discussed. Differences are clearly articu-
lated, and the groups look ftir i he causes of the dispariries.
Are the groups’ goals at odds? Were perceptions distorted? On wlial basis
were Stereotypes formulated? Have some differences been caused by misunder-
standings of intentions? Have W’ords and concepts been defined differently by each
group? Answers to questions like these clarify die exact nature of the conflict. Unt‘e
the causes of the difficulty have been identified, the groups can move to the integra-
tion phase- working to develop solutions that will improve relations between the
groups.
Subgroups, with mejnl)crs from each of the conflicting groups, can now be ere-
further diagnosis and ro begin to fornurlatc possible alternative actions that
*d1 improve rcUtions.

CONTEMPORARY ISSUES IN
ORGANIZATIONAL CHANGE
FV>r many employees, change creates stress. As a result, many managere are asking,
inc stress among my work sTi/fff '^Innovate or die” is another popular phrase
m managcBKnt cialcs. IFA*,
 Chapter 17 O»g»ni„,ionaj
Chanee anH ru.
And « organixauons have b.c.„ne increasingly ««cen,.H
inrellecnu] n,anagcP. arc seeking answers optinMiing
^^p^cs, address rhc!«r three questions.
,ba, a,n http people In 'he follow.

U^ork Stress

Sa^ - dj-naniic conJinun in which an individ„al is confnmied with u.

, constraint or demand related to what he or she desires and fo

is perceived to be ^.th uncertain and imponanc.” Stress is not
,p and oHtse-lf. .although stress is often diseussc.i in a negative c««nf« T?"
Sidve value. parUcidarJy when ft offers a ptnendal gain. For example 'it oS^n
Sdeusor stage perh.rmers achieve a superior performance in a criiical ftmsS
However, stress r.s more often associated with constraints and demands. .\SS
nievetts )'0u troin doing what you desire; demand.s refer to the loss of
Ln^J. you take . test at school or you undergo vour ^L peffo^t c!
^ew ar work, you feel stress because you confront opportunity, constraints and
Jeroands. .A good perft.nnance review may lead to a promotion, greater resp.m^bili-
tics, and a higher salary. But a poor review may prevent you from getting the pmmo
non. All c.yrreTiiely poor review might cause you to be fired.
Employees today are increasingly compiaininc about higher stress levels
brought on by prc.ssurcs at work and at home.''’ ^\nd managers arc ^ying attention if,
for no other reason, iCs aftccting the borrom line. For instance, job stress is estimated
to cost U.S. industry between $200 and $300 billion a year in absenteeism, diminished
productivity, employee turnover, accidents, workers' compensation costs, and direct
medical, legal, and insurance fees? ’

Symptoms of Stress What signs in di rale tJiat an employee’s stress kvei might be
too high.’ Stress shows itself in a number of ways. For instance, an employee who is
expcrieriringa high level of stress may develop high blood pressure, ulcers, irricabilicy,
dirfiiiJfy in nuLng routine decisions, loss of a{>pcriTc- accidenc proncncss, and the
like. These symptoms can he subsumed under three general caregorics: phy*siobgical,
psychological, and behavioral.
.Most of the early concern with stress w’as directed at phy'siological symptoms,
prijiiarjiy because the topic was researched by specialists in the health and medical sci-
«ces. This research led to the conclusion that stress could create changes in metabo-
J™, increase heart and breathing rates, increase blood pressure, bring on headaclies,
3Jv( induce heart attacks, rhe link between stress and particular physiological s^inp-
not clear. There arc few, if any, cemsistenc rchuonships. Thi^ inability co pair
u-ith particular symptoms is anribuicd to the complexity of the symptoms an
^difficulty in measuring them objectively. But physiological symptoms avc t c
’^^st direct relevance to managers. , i-
. Of greater importance are the psychological stmiptoins. Stress
^-t&ciion; and job-related stress can cause job-related thssarisfacnon.Jo
^3ct, is the simplest and most obvious psychological elfecr o

itself in other psychological states-for instance, pro-

procrastination.' Behavioral stress siuo^ng
ahsenl-e. and nirnover. as well as changes in eating habits, nereased g
^'•’'’Munpiion of alcohol, rapi.l speech, fidgeting, and sleep disonteis.
Mt W Tke Organ Sptem

RcducinK Stress Not ah stress is d^t^ncticmal. Moreover, realistictally, stress M

never be coralIv clhnuBiced from a person^ life, cither off the job or on. As we
strcss-rcdwrd<.'n rerhniqucs, keep in mind dial ewr concern is with reducing the pan
of stress that is dyshintaonah
H icnns of nrganiiarinnal factors, any anempr ro Inwrr sn-ess kvek has to begin
'«ith employee Management needs co make sure that an employee's abifciucs
nwich the requirements uf rhe job When employees are in over their heads, their
stress levels will hpically be high. An obicciivc job preview during the scltenon

process will aho lessen sws.s by reducing ambiguity. Improved 'ir^amzdti>>nfjl

(ommu-
will keep ambiguity-induced stress to a minimum. Similarly, a
program Mill darify job rcsponghiliries and provide dear perform.inee objectives
is al>o a way to reduce suess. if stress can be traced direcriy to boredoin
work overload, jobs should l>c redesigned ro increase challenge or reduce the work
load. Redesigns that increase opporniniries for employees to participate in derisions
and to gain MX-ial sup|Xiri have also been fbuml n» lessen stress.
Stress that arises from an employee’s personal life creates two problem*.. Firit,
it’s dilJicuIt fa>r die manager to directly cwtrol. Second, there arc ethical cousklera-
tioii’i. S|>ecifically, does the manager have any right to inrnide—even in the n^ost sub-
tle wayrj—ip tile ernptoyvv’s personal life? If a manager believes it is ethical and die
employee is receptive, there arc a few uppruaches the manager can consider.
Employee can provide stress relief. Employees often want ro talk to some-
one al KHIT their problems; and rhe oT^anizarion—ih rough its managers, in-huuse per-
sonnel counselors, or free or low-cost outside prolessional help—can meet that need.
For cmployce.s whose personal lives suffer from a lack of planning and OTganiution

that, in turn, creates stress, rhe offering of a thTtc-managef/zcni

irtyjgrarfi ma v prove lien-

ebcial in helping them sort out their piioritics. Still another approach is organizaiion-

ally sponsored physical aM'iry prctff /nHs. Some large corporations

employ physical fit-

ness specialists who provide employees willi exercise advice, teach relaxation
techniques, and show individual employees physical activities they can use in keep
their Stress Iwds down.

Stimuloting Innovation
How can an o^ranization beixjme more innovative? The standard toward which many
organiz-itions strive is diat achieved by 5M Co.^^ 1 he maker of Scotch Tape and Post-
It-Notes has built a reputation as one of the must innovative organizations in die
world by consisrentiy <lfcvcioping new products over a vert' long period of time. 3M
his a staled obicctive that 50 percent of its sales are to come from pnxhicLs less than 4
years old. In one recent year alone, 3M launched more than 5<X) new products.
V\‘hat s the svcrci of 5 M’s success? HQiat can other organizations Ho to duplicate
3»M s track recohi for innovaiion? riiere is no guaninteed formula, bur certain diarac-
teristics surface again and agaiji when researchers study innnvaeive organizations. We
group them into smictural, culrnral, and human ru.source categories. Our message ro
 Q»apter 17 .

^n,c
,hat
orpmiMtions faciliratc the flexibility, Ldapm''n
ntak*’ adi.pnon of tnn.waiiofts easier SecJd
':«.trali«rion,
Innt^ T"'
,, associated with innovation. Managerial tenure apwtrcnt ’a
nd knowledge of how to atx-otnplish tasks and ohlS d e legitimacy
i„nn«n»« >” nurtured where there are slack resources Ha^'n
|.g5ource-'> allows an organization to afford to purchase innovadons s
jnstininrg innovuuons, and absorb failures. Finally, interunit co^^'

hiph in innovanve organizations. These organizations are high us^r^ oT"'’'"'

flctiori across departraeiiCal hues. <«-'HUU inter-

Culnit^ Variables Innovarivc organizations tend to have similar cultures They

encourage cxiXTin.entat.on. niey reward hod, successes and failures. They celeln^te
mistakes. Unfortunately, in too many organizations, people are rewarded for the
aijsence nt hniures rather than lor rhe presence of successes. Such cultures extinguish
risk taking and .nnovation. People will suggest and m- new ideas only- when chev fed
dui such behanors exact no penalties.

Human Resource Vanables Innovative organizations actively train and develop

th«r members to keep them eun-cnr, 'They offer high job secunty so that employees
u-on’i fear getting fired for making mistakes, and ihey encourage individuals to
become champions of change. Once a new idea is developed, champions of change
actively anrf enthusiastically promote the idea, build support, overcome resistance,
and ensure that the innovation is implemented.

Suaunary’ Given the sialus of 3 M as a premier product innovator, we would expect it

to ha\’e most or all of the properties we’ve i den rifled. And it docs, llie company is so
higldy decciitndizcd that it has many of rhe characteristics ul small organic organixa-
lioDi. AJl of JM’s scientists and managers are challenged to ‘ keep current ” Idea cham-
pions arc cTeared and encouragcil by allowing scientists and engineers to spend up to
15 percent of their time on projects of tlieir own chwsing. The company encourages
Its employees to take risks—and ir rew-ards die failures as well as die successes. Pii’^lly»
kM is a model of corporate stability. The average tenure for compnny officers is
years, overall annual employee nirnover is a minuscule 3 percent, and the company
Irides Itself on being an employer for life. Financial analv’^ts, in fact, have recently ent-

id zed the company for being toe stable. Tn particular, they rake issue wat .

nient’s unwillingness to cut costs through employee layoffs. Managements

it’s this Muhility that iindcipins its innovative cuimre an<i alk»w's it to l

Knowledge
l>rightc5t Management
scientists.

piemens, the ^obal teleconinmnicarions giant, recendy j^pite of the

huittcriand to build a relccoiiununications network or nvo secret m Siemens’s
that its bid was 30 percent higher than illowed Siemens people
was its knowledge management system.- 1reps wim
Netherlands to draw on rheir experience and pro . j|y nxjre reliable
'''huKal dau ,h.. proved the SiU.H^ns’ network would bt subsra .
•A
J
•

thv kiJiniKilnun’s
The OrgSRtMtaon System
Siemens is one «.f a eniwing ntimher of compsmes^nclud.ng ( S^icms, Koii ’
Motor C> . Johason & Kdinsim. Intel, \olksw-gen, Hexlett-PavUrd. BJJ
Roval Uanii of t^inada—that have ixaliicd the nilix: ol knou ledge man.igciueni (KM).
' WTwt is knmdcdgc management It's j process of nr^'anizmg and distnkxiung an
organiMdon^ mllevdve uisdoin so cht lighi infomiaiion gets to the right penile at
riX rime.- When done properly, KAI prtwidvs an oi ganiz.irion with lx)th a wanperitive
edge and improved orgiinizjiional pertonnance because ii nukes itb emphwees smarter.
Knowledge imnugetnenr is increasingly important nxiav for at least three re»-
sofw.-’ First, in many organisations, intellecnial assets are now as iinponam as
cal or financial assets Organiz-qlions that can quickly and elfiacndy up mu, Acif
employees’ collecrive experience and w’isdoin arc more likely rn “nutsmai-t” their com*
petition. Second, ns baby boomers iKgin to leave the workforce, there's an inereasmg
awareness that they represent a wealth cl knowledge dut will be lost if there arc no
attempts to capture it. -•Vid third, a well-designed KM sj^stetn will reduce redundancy
and make the organiwrion more efficient. For instance, when employees in a large
organizarion undertake a new project, they needn't start from scratch. A know'ledge-
management st’stcm can allow access h» what previous eniployees have learned and cut
wasteful rime retracing a path that has already been traveled.
How docs an organiz.auon record the know ledge and expertise of its employees
and make dial in form nd on easily iKxes.sihler l( needs Io develop c’omputer daial>as«of
pertinent in lor mation that eniployees can readily access; it needs to cieare a culm re that
supporcv and rewards sharing; and it has to develop niechaiibstns dut allow' employees
that have dcvdo|icd vahiabk expertise and insights to share them with others.
KM begins by ideniihnng what knowledge matters to die oi ^anizaiion.*'^ As widi
pnKc» reenguieering, managenienr needs to review processes to idenlifj’ tlxwe that pro
vide die iiiosi value.'Then it can develop computer networks and datalwscs dial can make
that inf(>rmaiion ivadily available lo rhe ,ieople who uiosi need it. Bin KM won’t work
unless the culture su|ijwrts the sharing of infnnnarion.-^ Renicinbcr, as noted in Chapter
11, infonnarion rhai is iinpwcanc and scarex* can lie a potent source of power. /Uni people
who hold rhat power arc olten reluctunt co share n with others. So KAI requires an f>rg>
nizarional cuiiun* that promotes, values, and rewards shanng knowlccige. iunally, KM
mua provide die nicchanisnts and die morivation for ein|)Joyees to slure knowledge that
employee find uscluJ on die )ob and enables them to achieve letter performance.*^

knowledge isn'i necessarily /vrref knowdedge. Infiirmation overload needs lo he avoided

bt’ designing the system to capture rinly pertinent inR>miarion and then organizing if
it can be quickly accessed by pcojilc whom it can help. Royal Bank of C.anada, fur
instance, has created a KiVI sysiem widr cixstomized e-mail disuiburitin Usts cai*efiiny bro-
ken down by employees’ specially, ride, and area of interest; set aside a dedicated site
the company^ iiuranet that serves as a centnii infcx-niaiion repisimry'; and created sepa-
rate in-house W'cb sites featuring ‘'lessons lea med** sunxnurics where employee* with
various expertise can share new infonnarion with othci’S.
IMPLICATIONS FOP MANAGERS
rhe necil tor change cru'iini^^sscs almost all of die concepts within nrgani-
zarional behavior. Think about attitudes, pcrcepdons, ceants, leadership, motiva*
rion, organir.atioiu] design, and die like, it’s ini^xiKsihle to think about these con-
cepts without inquiring ahoin change,
 I If environments were Org,-;,

I oicdy rtie snnw as «,£]„. „,!._. ,2^ '='^f»raung 7^ »nd abiliH

/ members rv undercj^ ^“rbulent IHA • ^*fdc or «

/ ebrtr<x/iejn475c peaccftjl dpf/,. ‘’‘^oeriH, ,

/ most managers. Today’s u orld skeb”^’srurU ^^^^*

du»g. .gc„., '" -his .Ort.,, S -1... d,„/“ ™

A
I
s
r
1
1.

V.
•>
 Epilogu
the bttine meaning to aft author that it has to
riri ^norate. feehnj,^ of both accomplishment mid rehef. A» boA of o. rejoke
Xing our tour of the es«nud a>n«pu .n orgutuxauonal behav... ,1^
.s a good rime to cwmine where we’« been and what ,t all ni«ns.
he tmderlpng theme of tl)i5 book has been that the hehanor of people a, ,otk
is not a random phenotnenon. Employees are complex cnni.es. bnt dteir atnmd«and
hehavton can nevertheless be explained and predicted «tb a reasonable ^grce <rf
accuracy. Oi.r approad. has been to look at organizariorial behavior at three levels; the
ifldjvidual, the CTfJup, and the oi^anizatton s>'?,tera.
We srarted with rhe indindual and reviewed die major psychological conmbu-
uons co understanding why mdi^ncluals act they do. We found that many of the
individual difference'; among cinplm’ees can be s>'steinatically labeled and catego-
rized, and therefore genemlizarifins can be raatie. For example, we know that individ-
iuil.<i with a convcnooual type of personality are better marched to ceruin johs in cor-
porate management than arc people with investigative personalities. So placing
people into jobs that are compatible with their personality types should result in
hi^er-perfonning and mt»re-satisfied employees.
Nc.Yt, crur analysis moved to the group level. We argued that the understanding
of group behanor is more complex than merely multiplying w’hat we kj’iow about indi-
viduals by the number of members in the group, because people act differently when
in a group than when alone. We denionslratcd how roles, norms, leadership styles,
power relationships, and other similar group factors affect the behavior of employees.
Finally, we overlaid systemwide variables on our knowledge of individual and
group behavior to further improve our understanding of organizational behavior.
Major emphasis wms given to showing how an organization’s smicturc, technological
processes, work design, human resource policies and practices, and culture affect both
die attitudes and behaviors ol employees.
It may be tempting to criticize the stress this book placed on theoretical con-
cepts. But a.s noted psychologist Kun Lewin is purported to have said, “There is noth-
ing so pratrical xs a good theory.” Of course, it^ also true that there is nothing so
impractical as a good rheoiy that leadx nowhere. To av<)i<l presenting theories rhar led
nowhere, this book included a wealth of examples and illustrations. And we regwli^’b'
Slopped to inquire about the implications of theory for the practice of management.
The result has been die presentation of numerous concepts that, individually, offer
some insights into behavior, but which, when taken together, provide a comjJes syv
tem to help you explain, predict, and control organizational behavior.
 Endnotes
CHAPTER 1 W^wk'. FUd\«\ny U ’he Watt’ll word,* ftww Bli4«
Jewy
Sec P Ad' I c • iJt 10. 2000. p. lA
AAUCOM; I9'>6h 13. S Site lUnhiTger. “What Aates Ideally A^ant
t pf^ef-indj H '•cig- “Puiiuig FcopkFi^tfor Co
(jrtjjiuaO^’'«’ ' ’* //Az.;rp^, tf) KxKtttnx^ Knnw: Will I ll.ive j Life?" -Kenct NvrraiWt
MM PP <“ 4S. ind R./V Ban»n and GJ>. Mwkffiafi, 17. l9</9, p KI. and : “U S.
-BfyopdSTKiaJ Ca^MUl; Hi»u 5w<ul Sbih Fnhunce EmpkryetiPnUahImagewi
Socc«^»,' Actf^nrr)' Extfvriit,
Woo a IXthandiui^ Nc« (hrnendon,* Afee^rr
February 2(gl0, p. -.
14. See, t<»f iiiMJiicc, n.A. S(e*an, *Gray FUunel
P, Dyp'es, -Change ractoo’’” Co»^v>, Juit 2000,
i Soil?*
^ 215 24.
?. Sce.lvr instarct. D.H. P<\'(erfic]d. ei al, (cds.), TfUtU CHAPTER 2
Murrti 16. 1^9K, pp. 76412.

QaH^ Saddle Rntr. bj*
fVeoU‘* Hall. I'W). and WJ- Knlanl, Owww^
Rtftttn (New iorL Mc<4mw Hill. 20110).
4. Sec. for in<uncc. \ . Sethi and VA’.K. King u-ds.).
f'frsfifiz^rwiai Trjt/t^mattMi Thmugb Butntr.^ t^rr^cvis
(t'ppcr Saddle River, NJ- Pi einiw Hill,
IWH}: and C .M. KhoOBg. Xe/«g’werwg in AvriuN
(Izjndon;
linpcnil College Pn.*#,
\ X Wdlner, *Haw Do You Spell Divcrsiiy?”
7>«nwaa^,
.April JOW.pp. 34^58.
6, O.C. Rxhard, “Raaal Diversity, BtsintsK Srraregy,
1. M. Rukuach, TAi Vaw/r Waawj (New Ynrk:
Free Presy, 1973). p. 5.
2. Ibid-, p. 6.
3. J«M. Munson and H.Z. Posner,-‘IK Fartorial
Vdidnyof
a Modified Rukcavk \^ui.* SuA'Cy for FfW llherre
Samples," E/th.T/w.tZ ^rui PryJ^niogimt Al«»rnwrw, Wimer
I9W, pp. 107) 79; 4hd W C Frtden<k and J Wdier.
‘The
Valiie> tsrOjqHiracv iManigers and Their Cridw An
ILmpiricaJ Dvscnpliiin >indNomianvc
liiiplH'attun£,"u)
W.C. Frederick aud 1. F Pryswn (cds.). BufiHfti Cfikw.'
Is'tus tiitd rMpihta!Stadjei{Vjrk'vwf‘>f:h. Cl: J Al

and Press, 1990).

5. Ibid..p. H2.pp. 125^.
I1rm I’erlormancc; A Resonrre-Based Vieu.’ JfflAwy
of 6.
4. See.
FreJenck iKewnple, mJ Weber, “ llie CValues
R. Zcflxfce, Kainet ot O^poraie
andD
Aprtl 2000. pp. 164-77
yUna^watJ^mai. Filrptuk,
Manugcfsai’d Hi er ( jicies.”
*' V S. Department of LJIMIT. Wiiroens Bureau. 2001: 6'ewnflwv thi dasb

and fll/vmen,
t.S. Ceosua Bureau, 2001. .Vp»'?r, and y^txldt it* K/ur (Sew Yuri: .ASIACOM,

See. fnr iiisuiK'C, E.E. Kr>ssek' and S.A. T.4>het 1099); C.Y. Chert. "Chasing rhe Net Gciicrsoon.”
(AK), AwTOir,
Dnrniiv ((Cambridge, -MA: BlarkueU, 1996); September 4.2(KO. 295-98; C. Pcnitila.
'Roilding a Competitive Work force: Divciisiry—The “Generanund
Bottom Line.’April J. 2000, pp lHI-94j rind O.C. Gy
200).pp.rations.” 2H 30. />^z*rzwwrtr, Apnl 2001, pp. 1112 05.
R R.E. Hxtni'ici'. y JOthaw afo, ,M AlomiiuOib and
Ririianl, "Racial Diversity, Business StrjUgy, and
Zeiiike.
L ’Ikre (>iiue the AlUcnnials." Vvinieg, July 2001,
Firm
?etfoniidnce A Re source-Based Vie w,’.-f£#dcw7 irf
pp.
HaW, 44-9;"tbiatid C/K’ N. Neutner and F
DAd/Z^e 2/rBa»<hEdliqs,*
“The jhtiffia/
BoomeTs*
afSi'hitvtaiv/ Ftt/fn/rtKr^ .Sonirnc/ J %9. ^ip. 120 A3.
Jauniat, Apnl 2000, pp. 164-77.
Kids Get a Jub.’ l^S. AH-j t Hirid Reywt, Septc-niher 3,
9. S.P Rohhirw, .4/tf?»4;r/Mg To^oy! 2nd cd. (Vpper 8. H,Z. Posner anvl U.K. Schmo Ji, *V«hiw arid riu*
Saddle ArKTicau AUnagn : An t’pj.iit l.'pdaied,’*6i*i3^rww
^•cr, N): l»reniic<’ Halt 2000)^ p. 36. A/tf?wgrWewZ ffr.’jVui. spring 1992, p. gd.
Bj. Serf. f« jiisiancc, P. Cappclt. J. Cowwntinc. and 9. Sec. fi»r irj^unce, 1>.A. Ralston. D.H.Hnh, R.H.
C. 'Ifcupstfa, and Y Kai-vheng, ”’rhc Impaci
f “Il Pays Io Value Family: Work anti Family urCultuftimJ
Apnl 2000,
•' RAatMtif,
IdvijJugy im Alanagirijl Work Valuers .A Siud>
125-9^,; .xt.-X Vcrwpei, ‘Balancinif .•Kci." WwiM ottfce
0 tfl, L'Wti**! .Sfuic«, Russia.Jajian, aid (Jiiiu/ tn O.R
Afw’te
15, 20W), pp. diid K.C Barnett and P.T. Hall,
(tfd.2, Afodrmy .UtfTWfzswA/ Paptr PmttJingf
’Huw so Vse Reduced Ht.uis tn Wn the War lalent,*
QwwZa, vol. 29, rvo. 3.2001. pp. 192-210.
 Endnotes
Sehavvir: Its Nan.rc tml Airtevwknu. 7e««tf 0/4^ .
1
Align 1' >»J'}. Pl,. I .V' 1 Ery<^*w^. (><‘ifAKSf A.P. Bntf.
10. ’ (I luf.inR-. t Wrmr i tf!and Or^fnnz^tfihna friioundnil Oakh, CA: Sajm
n bWm. .'Bi-
verlv
HWI) (i. Ilobu.lc. pp. 44-15; nntl P.M. P<MJs«k<.rt, S.B,
MM U x..,a,.n: M<<.r,u-I lili. I IX (i-
MAclUnxie,’
J li. Pain f. H), G. Ba,: h f- h, “t»r pnizai H .n si
’•<hihli ra f G< nvsr rai ill s 1 n .\TM»a gemr ni
Ciliycttshap A l.rittcal Review ,»f rhe
The^ri t s,
.»'<1 J''mpujc*l Litcrat^jrc and
Avesw/m, Fchr’zjry PP> ' Su^wbonii,,
HnEtnlvunil M.E PCKI MHI. “Nsdiimal Value* md I'uitirt Resc:’rch,'’.7»imi^/ iMzr/wx«’w«n, vc,|. *6,
OTgAiMWiimul Pr-ciicc</' in N.M. AahksnflHV. f„). \
(..HM
Snge, 2000>. pp. 4(i|-|6 .nKKi. pp 5!i
WUei^.m.
11. Hordede arulwfkM.EilPcim.jn luds.K «i?zrwf<«'>k
Hii, dimension iff
IS. D.^V Org.in an«l K. Ryan, ‘ .A MeU-
vetsn* (j'/tfftr and ( fhousfin;! <2ak», (- Analyoc'Rev^
Hwfppriry, l.«t c’veA; changed hi5 lerms bccflu«: of their
* „f Aiiitudinxl and IPrcikti^r* f>f
silting Wflst conTvnjiO'’n. <lrh<rfniziiionAl Cicimiship Hebavini/
12. N.I - •'^dler. ‘'Cross-Cuhural Majiagemcnt Winter I'Wkp. 7‘n.
Research: April J W, p(K 226-.C. IM. I. Fahr. PM. iWsakniT, and DAV. Origan.
13. LOsevieh
The Godlan.HIH GI E iheBraye,
Trend,"und C L. Caunch.'‘L S -
JiwJewr 1**’' OrganuiH’or**! < Kizvnship flctiavuK:
of5/*rwx«'W.'»r
Rased lx* J J I I’aimess and Iasi; Scope ^cnius
Crotf Cultural Manjuouent ReS8arch in the SatjsfiMtion,"
Eighties, Deiximber 1’>X), pp, 7C5-22; R.H,
JftWTTitfZ vf ^ftd P.rTuvnres, vol. 15 (V/ldd),
McM»rman. ’•Rebdofiship Betwinui
|>|i 17-45! and TK ?eng,M.i. ikUTHm, ami Y.R OrganiianwiJustice
Shyi,
and Oiyanizatiojial Cii i?«;nship Behaviors;
‘’Quanntativc Methods m Cims-N’joonal
14. EA Locke, "The Nature and Causes of Job DoFairoew
Vaiugenxnt
.Sad^tacrinn,”
Re Search; drends pp. 1319-2>i. in //<»/;JA
imtl Ej^invslerce IMF of hidiuifnel ti/i^
l«iuef'r Perceptions Inflvence Dupioyce (JiiizAJuship?’'
Jotentalsf
O/^w/’.^rwwZ ^Zri^rw, vrrL 12Rand
Orf^amz^tTfntal (1991X pp- K7-] 07.
AlcNallv, .4p/>/jcd’r>y/»?/yf^. OL'cemher pp, K45-S\
1976). andM.A.
1$. See, fiir insunce. .A.H- RJUV^CM and 1V.H, Kunovsky and D.W, Organ. “])i*pt•sirhinal and
Crorten, Gintenujl
“Employer’ ArriTiicIcs and Employee Dcternufiancs of (Irupnrzatinnal CrTizciiship
I’erltinnance/ Behavior/
/^ Wo^i?»ZB.7//eMn, Seinejilkir 3955, pp. 496— Behcr.'iifr. May 1996, pp.

12«; V. H. 20. I).W. <>igan, ‘Tersuhal 1 ty and

Aroom. Woril’/3/fl»riw.r?c?w (Nev Ytirk; Wilcv, <)r6ijnizfltiunaJ
1964); Ciij£ci'i;3hip Behavior/ Summer
M..M. Petty. G.W’. McCee, and J AV. f'-ivenr.kT. I9<)4.p.466.
“AMeta-
16, P. E. Sp iTtor. SuttjfLiou^:,'j pp/ieii litm, .-(jve 21. L. Fesrinper. 't'hiaiy iff C')ii;nifive Tkvr>Mr»a (Sianford,
ATUH'SIS of ibe RclftCoiwhip
tnirf CoivequejMs heiwvcji
(Tluniaand Caks. CA: Individual
Sage, 199?). CA: Sun ford Ciiivenict' Press. 19.^71.
Jeb
pp- 57-8i RM. PmUktift, S B. .MaiiKenzie.l B. 22. AAV W/ckcr/'Attitude Versus Action: ftc
Sanit^ccbni
Paine, and iuuj individual Pcrhniiamc."
Kdadonship nt AXTIXHI ami Oven Behavioral
^irWewry
D.G. Bachrach, "Orgjnizjnonal CifiMnship
RespciDSSSto
AfOTrfgri^wiv:/
Beliaviurs; .A ftij'/i’ti'. Otuiher 19334, pp. 712-
Cribcal
21; and Kvview S. of the Ihcnretical and Finpirical fVitiludeObjcus,” 7'jw-7u//3/‘.9')fw//xptffcf,Aucwnn
Lneranrre
SheHcnbargei, and Suggtsriniis
“Ci'inpsnies6.1
AreEiruTc
riniling Research,"
RCHI IW.pp.
7izrr,vz»Z
Payoff in 41 76.
v1 Mj»«gewni, till. 26, jw. 3, 2IJCU, pp.
Aiding Empbvee SitistacricNi.* N >/iG9;/rcr 23. H.H. Kelley, “ActrilMJtinn in Sociiil
Bcttencoiiri,
TW^TVM?, K.P Gwinner, and At.I.. .Meuter. "A Inuractkm.’pp.
Oxnparc’^on
(.knober 11.2000, «jf Attitude,
p.Rl, Pereonahiv, and 1-26 in E.JoftCA er al. (cri«.)..-^rr7v7wjw
Knowledge P<vT«:r«^ t&c
T.S. Sa.emin 2.HJ DAV. f)rp,„. “J„b
Pretlicti >rs r.fServkt;.Oriented Orpuuzai h niaJ
Satis&ctu.n Crf&»Ai e^PrAzR'Zii» (Morri*5n*>wn, NJ; General
U

CidzeriMKip CHARTER
*iw J..- (««d s.*iier^ The Rebtiooship Bewcei, Learning
l

Ifchavhjs/yuifnW Februarv '’Oft I

Affect
pp. 29-41. ' ’ Pros. 1972).
1 S« ft.R \h ( ray and RT. Cxta Jr.. "RciAtcrpt«o*(L
24. See L. R<»s*,
the Myers/Bl 'micrAdicator
igg, I’ype lino hive ^im Psyd'inkigist and
the Pe«pMiw<
Owemher I9S3, |>|>. 5'i7 05: G .A Smith,
D.W. •;
H*s
Otpn. uidJ.P Srtf.“Organir««,rul Cinzemhip Sboncomings, ’ in L. Berkowic (ed.K. JJj'^«in the
.$0.7^ vol. Id (prlanrlo, FL:
AL-adenuc Press. l'?77), pp. 174-22d; .A.G iMilltr
aiidT
I. «ws<>n, “’J'he F.ffcci of an InfiirmationaJ
 . .Model of Pevw«MkFtv.*7«*naW«f
AUreh IMH9, Pp. n-*h «d C FingmU amj i
kk /*T<d»p«^£e<afcTT. Ketf^i, «*/
/‘kvWflgwW 75^ rfm/ iMjftjAip
’^ .^UKCA l>avke.-BUk Pobl^hmf. 1097X
. (“ \ Landrum, PnfiUt 9f (itmag (Neu Yorfc;
, rU Dipnart. “Perwnality Srrunurv: tjiiii^ce of A<
jr^e^artof \1««lr!.‘ in M.R. R^-Kcnzweij. and t.W
Poner
vol. 41. <p»|u ^to. fJA; « N H l. nid,.-.\,„j,
Rrsie«v ’***>’• Pl* 41 "-MO; P.H. RayTOad, M.J. bmoiKiiis,-p.5s| c|>i4aue$Bri
and R3t Ciown. 'Idenofking {Am.*naa||y LWuJ
A >t««.UnR aj Cm«4«e»cx,ofEr„otionri UW^
ptfsoality * ‘’“strocts fen Einphnve /^Mzid
XttWtnn IW7. pp 723-^6; andC.AL Hum
and U irh.^. Rurning ()□,: I, I1«,e .n 14»»l KVr, vXSnT
jj CXatovaii. ‘Personaluy ami Job Perfbniunce; The
n j. Zxrbc itJs 1. Eroffwum rt, R„^
ftig
prtReno«^l-*.7«"^^ of IXxcmber Ttmy. (Weapon. Cl r Qsionun B<MJB,
20».pP-*''^“’'’ ’Qom
S«.ft»r irwuncc.M K. Barridf and M.K. .Mount, pp
16. 1..<R.
-S8.HodtxhiW. -Emotic, Wq<t Fttfing Rda.nd
*
"lite Scxul SinKUire?/Jw<nia«7Mnw/<^.Si»i3«.
gigri\« penorwiify Dimensions and Job Nqvant^,
Perfonnanee- .A pp 55S<5.
Kt^Aflahvi^.’ Prr^nel +4<I<>Q1). pp. |-26i
I.. B-M. DcPaukx 'Vuirverbil Bclu^'Kir ami Sel^
I'A jDd?v«.l'.l’ MaTOcvhio. aixl CJ. TbiweM'fl.
Poxcuuoru" /^iWflj,aarfftJfrrm, M*n:h IWC, i^i.
pkiorAl'*^^ Personality and Employee Absence/
2OM3.
October 199". pp. 745-55; O.
ly. C.S. H»t»c. '.AJvhoutih 1 Mi^hi Be L>itg^ip^
Behling. “Employee Selection: M’dI biteUigcrKt.*
l^uid
and
C^atfienrinusness Do the Job?” Aca^^nry ^\fttna^iaetit and Hearty. Deep Inside I'm Blue. Individ^l
Febnurr I’.Wfi, pp. "7-B6: and ES. Su-itzer Hl PeruepUuns Regiirdinp Fe^inuand Oi>pbpn«
and PX. Roth, "A.Meta--An a In If Review of Kaiodocks
Predictors uf at paper presented at Ac .Uadtmy of
Jch PerKtfroncc fur Sale.^tpeoplc." pf Appiitd XlausgewentXanonai Contcrcnce, Cincinnao.
M. Fnvdman .Augustand I99fi.R H. ppRosenman,
.i»6-97. 7>^ .1 Btbazior Aufus
(New P^’M. p. L
5. J J.V<»rL: Saigudu. .Allwd " I be A. live
Knopf. 1974),
Factor p. S6.
AUxiel of 21. K Ueaux. "Set Uifferenew,’ in M.R. Rnunmig
4 J,L. Holland. Ihwrm/fdZC^iwrr* .4 I'bt^ vf 19. 11.M. U'ei» ami P. Cropanwio. \Aftiecm Knuts
Personabw and 1..U' Porter (edx.). J/nww/ Sintft' of Pnf^tbgt, ml-
^'^rwnlPrrrtirhibnafftid U'nrk Eft virouffnvK, 2ad cd. Th«?on/ pp. 20-22.
and.lob
iLppei Saddle Performarce Rj\er. NJ in Prcndcc
the European (xwununity/
Halt I9H5); .AR. 26 (Palo .Allo, at .Amioal Rcviewa. pp. -IR-BJ;
JU. ItU. Wootluorth, fiqjedwfww/ Pr^M^ (New
i»pnlune.
Jcitntaisf ApftiitJ ftvAo/u^.
" A Renew Fcbnian'
of Research19Q7.onpp.Person-
30-43, M. LaTrinw and .M. Ranap, •‘TwJtd a Recofbiden^
York,
Ennronment of Ac (.Jender-Einiinon Relationship/ m M
6. F. KKickbohnand EL. StrodrhecA. I^»n7«wta J Holt,
L^fimtnce ui Holland's Thcon of Carvers." JewmW^’ (.hrk(«I.X
g/ar
pp 305.4 ?. (txaftsron. IL: Row Peter^n. 1961). yj. Tratxy RfvifT 9t Pfrfniu/By aaii $odM Pq^^ulp.<T. vol H
Ortmeaewno
Rounds. "FAaluannp Hollands and Gaa’s (NewbufV' Park. € V Sage. IWJ). pp. rU-^T; «d A.M.
^adoftal-Inurest Mudeb. .ASmctural .Mcia-Aiwdy’w/ Lrmg and A.H. (wiAai, ‘Sex Difference m
PitS/ettn, Mart+1 1993, pp. 22<M6.
Fwression,
686-71B. Experience, and Phpudogy.
example. L,L. Putnain ami O K- Miimbs; LR
Prrs^nMir^
22, .wi Rnnk indJ. A IblL tknJer.^ Afaab 199K, pp. *
^garniaiHuis. Ejnuoon and the Mvdx of RatkHulity," M. 1^ jnd.i.M. Ih.-ibnd i«U.).
(Neu York; Gmltoal Pre«. I-*-'’), pr -«’• ‘T’
in
£ Gn^snran .nd W. Uo.xk 'Sex
(v *’**"***’ fe i*‘ 0»Ktfjn2^/z*w> (Thousand
,rf ExiH-nerur; A
1991 J, pp. 36 57; criidT.A Doiiiajcakb.
J'uXMjn in Organi/joons: .Main Current*." Witawfcw pp,
,0,^ pp ’( I AJli^
a -X and R.H, Humphrey. “Emotion in the
R’f9R»>isal.’ Hinngm R<3efww. February L nivrrah PK»». I **4)
^**5 pp.97.jj5
M <«rtMgv. “ Iran and State AfFcvt," in K-R.
.Mufphy
' •“ - ^Adt. ri 6ol;xi'Mr « <>>«««<«
 : »
r>
'XI.
giiiMew
CHAPTER 4
24> N. Janwe. "EaaotlottaE taNnjr^ and in the
Soertl Regubtion* of Frrhng».** 5avM^£m/ Rrt'irff'.
Fvbnian P*’*. pp H-42: .\. H«»ch*4»W. Tbf SnviJ I \> b'.to ». A ZtfPmtiaiirf (New YnH-
A. RM*.
(New York, VAIUB. JWMIJ and HAt U«iiM-h. "Srams.
So- J. D. Md’Tfct-'JV, /Je/iwwtfn S/Jf i/EwftrprOTOi^Y^
aikJ .Smiliiip: Tlir l'.iTn;i uf Role rm Sun I mg in McCraw.lliUJV4)1.
.Men wd .V F. HcT?l*'rg, B. Mausner. and R. Snydermn,
IMancn.” Peiyo^otf/y it/hi Saniii Axf’akgl’ fItfUetta. Tfrp
Sepwiuber V'*>ik pp. 51|-4O. A^erti..m«w in Mbl (New York; A\*i l«y, 1959) Sec
25, .A^Rafaeli. ’‘Mhrn (Jerks Afcrf (jif, turner updiu •
A; AT«tnf Al.L. Ainhnise SMHI tJ. L Kulik. ”1 Md l’’ncnil\ New
F>ca^
Mtnables Related to Kmononal Erpressionon die »Moti'an«»n Resean-b m ilw I'/'MK.’' 7ciirtttf< of
Job," vvL2S.rw.5. rw,pp.235 54.
jMrMtofAfiphci/ PsYi fvtus^y. ]uiio pp. 785 <93; and 4, D.( L )Vtc( JellAftd. Tbt. k^xr: rrts (New Yotk*
.Vt. LaFrance ami At Barap, "TiTwanf a Vjn
kntuisxlaabuD of N^Mrand Rcniliohl, 1961 h J.W. Aikmson ,mjj ft
the Gender* Em ot |< >•» K rL l n >ns)i i p. ~ RjVfcji
Afwrie/Z«w arr^ . Fc+hTrwrwr (Washington. UC:
2A, L.7V. Hoffman, “Fatly Childhood Ftprnkticrt
1974); atul R. Kanfcr and K.U. lUggemd.
and
\MuncA'« Ai4iii vv’»it n( Aer**/ ’.MoiivatKr^
vol. 28,no, 2. 1972. pp. 128 55 TtMilMJinH Skills; .A Pei'^m-C.rnicrL’il Appnuch
27. .V K.ibtfli and U.(. Sutton, "'flc Eeprewior of lo Wipfe
Enxnuo in Oi^nizarinnal 1 ife.” in L.L. Cimuiung^ Motivation," in L.L Cummings mul B,,\l. Sia*
»nd (ed»,),
BAL Sea* (cd*.), Pufitr/'b m Or^tiNiz^aonfti Brhaztor, vol. fUtcarft in (/rganiz^ttmui &r(w!'«trr. vol. 19 (Greenwich.
11 (Gfeenwith, CL J.AJ Pfcs^, l*W). p. 8. CT.J.AlPre^j, 1997). pp. 1ft 24,
28. A. Rahaeli. 'iVhen Cidiiurv Alert Cnstcnoefs;
5. EJA. Locke. Imvard a 'nic*»r* iif Task Mubndim
.An 6.
IAI K Luth a ns arvi R. Krrili5i,*r,
'Anaiy^s of Supeniiarkei Cashiers/ ,4« Alryiry r^ ^- Incentives,*’ Or^ifnrzinronitl
v/g<Mr?^n(MwZ/h^*£Di*
fifnj^enreftr Afodr/riWftdM
PrfZnwoA-, May .amt l%8. in Oprnrar j/idE.A.
Seyond: .pp- Leantin^

j9nniai,JiMK‘ I'W pp. 245-7V zfpppwi/*

tocUindC.p. (Cvler^vieu, IL; Sontr. Foresman. 1984);
29. I (lid. and
La lbA.U. All I. -4 7Irrf»rt' of Goat StHin^ anti 'frtik Ptrfunninnf
Sajkovic
(Vpper Saddle and F.Rivftt
Lurfianv, , NJ:‘kA .Meta-Analysis
Fi\niJ<c Hall, 1990); of die
10 Dewfibed in S.Emmons “Emi’bons or Face
Effects
indE-l
Volue," of Oipniizaiion.d Bthm*ior AlodihcutiononTask
Lucke. “Alotjvation I*hroiigh OMScimi^i Gcal
Jau Trwfs,jM\iint\' 9. 199b. p. EL Performance. 1975-95/ .4t a/le»ty oj'.Mao'igenu'/itJoitraoi,
Suiting,"
51 R.I. Levy, titbiriansi \ findinii Etpvr/rwfc tn fbi Society October 1997, pp. 1122-19.
/tpplifii ond 2VfrrJ?7n’c I’eh narv Fk/6, pp,
IfitnJi (Chicago; Unnuroiy of Owcftgo Pfct*, 1971).
7. J.S. .\dains. "'Incqulc)' tn Social Exchanges.' m
117 124.
L.
32. Tbi* xn rioit ts bo^d on D. <Tnleman. EfMorhnai
Berkowiu icd-K .ddiaihxs n: rixpetitneniiii Socitti rsytbds^'
/er^gpwr
55. Ib<4., iNe* p. 1IC.York Banum, 1995); R.K, Ctioptr.
(New York; Aea«lrmic l^TCss. 1965), pp. 267-’.49fl;
"Apply)
<6. Ibid. i^Errxtf hl ltd Iciclhgencc in the Mtnlpldcc/ 8.
anJRT V' I (. Vnehn. Hw i'tfWi/.lZcntanw/ 1*^-
57. J-Al.
Tmiiu/i^ Diifio^ein, December
tieargc. 1997,
“Trait andpp .11 .18; JM.&2.
Slate ^
Aloud ay, "Fquily Tlivorv Pred it lions ol Behavior
Davies.!,
AfFett Sunkov, and R D. Rotkrts, ■'Eminiiir “Lmotlonal m the m U'. Van EerJc and H. TH urn, “A'neim’s
and
Iriicllipencc: Ifi Scardi ofand
an Elusive Eapco»nc>
Organ!zanoiH,'* m R, Steers la J L.IV. Porter,
IS. B.E. xMhfi»rtb R.H. Jwniat
McxkN ami IVtirk-Kelaicd Cntcna: A AUra-
W. S.L.
Humphm; a/fsiKtXiihMjn and R.J.
S'tikri Pi>./x,Zuj>, Rcnneo.
October ’A pp.
19*)8, Typf>U}^ of AfnrK'B»Mi
.Aiialrds.”
Per^uot/m

Deviant WiirLpbtx Uehaviurs; a/fd UM Uebai'jor, 6cK ed. (N’uw Vr>i k: .Mc(fraw-Hilt
/w»rw/ October l‘^6. pix 575-86.
A Mulddimensional
989-ICl >: and D Golcman, SealingHiei^/rg
Siiidv\"<-fftf<iV/^{i/
avzA £«t,r7WMZ IWdiip. U 1-131.
9, Ser. for in>unce. NJ. Adler, /ffxrJTWIMJWZ DM*®/*’
/w«krgrc.T (New
A/rfArgrnrar York; Bantam.
Joar/74>/, April IW,I‘W).
jx .155-72.’
Or^anisjtivw/ (ffhavfnr. 4th vd. ('Cituinnari:
40
55.A-G.B.F. Bedcun.
Asfcfortb“WoAplace F4»vy.’’ "Enuilioii in
and R H. Httinphrey.
O RMKJ; Spring IWi.p, 50.
the SoHlhwk^xtem. 2002). pp, 1 7 I-H2; O.P.
Workpiicr,’*
41. S. Neficn. p. “lomtiurb
IQ9. m dw VUtrkpUce*' .^<W9> Silvcnhe>rnr
54. Ibid.Febnun IMWq*. 25.
ftwwfg. •.Mncivaiion and.Vlanagenicnt Styles i« the Public
42. HAI. Wnw 194 R. Oijpartumu. “Affectivt Ewim *ttd
Thpw^’p- M- IMvate Sectors tn laiwan and a Comprisiwi ^Irh
lhe .♦ c
Unil wl SI .nt*.," Jttayttif SacMZ
TX’eember I9'>6, pp. 1827-57; and .A. Sagic, D.
tha»r»
and 11. Vaimgueh). '‘The Strverure and Strength
of
.Vhievement AVMrv^tion. .A <’ro**-<^iUfUrtl
 , py Pnktur. fhe Prtakr Matea^rmnn fNe»y^
, 5^. h»r msunce R Rtnlgcrs ami J.K. Hunter.
'^-PP J12-2., .„., “"--X
“Impact Wagner IU.“P,rtdp,r,«, „
!»> 1 )L|c«.uvu-s on Or^fdjunational
Tiyehd^, .Apnl IW). pp.

^32-326. and R. Rodgvfv jod.I.E. Huiiivr. “A

:s°; S;'*'"''^-™"-'»■
Fyundation
s«. f-T eumpk, 'nw i«n..
PracQcu in (rti'cmmentr
\bna«fn‘*^^ * Fr/lZ/* J^/nmwiOTiaa Bnittp, k ZucU n«n, 'ftviAJ. AHin,
FehrtUQ I’W, pp. 2. - J9. kwt TTWCT. .Xjan-h U.’Oni p ci ■*«.-■*»

5 -At t»» »cO ’’ nforecoaent Wfffr, Scpumlier 6. 199«). p. 26.

B<iysts 21. -EHipJojTi: Sfxk (K-ncrihip Plans.-
Perfomuntx*.” Orffnti^uona/ Z>)7wwifr. Winter 1973. pp.
<http-7/w»-u.ncBt».org /«s->psf«Kfeji.html>
4J'50 lAnftw 2001).
4 See F. l.udiariv and R. Kreitncr. 22. Qxed in F-t Poacr ani A.V- HaiMf»Mla, "LA
0»jftf«2flTwwZSeZwiwr WMM
(^fvnr and Saaai

IL: Saat. Foresman, and A.D. and Productivity CriW'di .Vtainabk f,«nsh«fc*
<hop7/uw.epf.<>q’/prc»>(Abn.'h 16, IVWK
Soikuvie ar‘<^ F. Lutiiana. “-A Alew-.Analvsis of the:
23. Sfv Ccnon. £np/i^f //rz^rnmi. pfk »Q-I i A; tnd
Effects
VV. ImhermaiK 'Boysting Plan Pcrtbrmanc? with
of Organizational l3chanvr.Mixh6taaon on Task Caaimhariiig.” gpgwg N4nv^lteT-
p^if^ance; ly^S-^S.^aKe/diwv uf\LaJu/^erttmtJwi’nat, T><MTOi>^
October 1997. pp. J122-1149. 1992. p 79.
5. F. Luthans and R, Kreitner. “The .Management of 24. W. TchoCT, ’'Tri4;kJv-E>own h TridJing Down
Bchivioral Cfnxtingcndrt.’PfiTCflflf/Julv-^Angnst at
1974. Wort" Btiiirreo Mirfc .VUrch 1ft. 1996. p. 14s
pp7-I6- 1.. Carricahuni. Firms Arc I.infang Pay to
6. Sec Lu (ha ns and Krci&icr, (Jr^tuiz^^al Sr^rZ^r Perfnnnance.* &i/r Lake Triku/u, .April II. 1999; and
Mfd^nrtivi and Beywd, C^hapctT 8; and PD. Clumpagnc
‘‘Whar’s WVang wiA Pay for PerforiMnctf?’'
and R,B. McAfee. “Pn^moang U orkplace Safety with <hrTp://«M-w.homc.simb.ao(J'J^‘^ *"• 2000J
PosiO'X Kcjriforcement,*’ Perfbi'ntarue .Vfejjtfgcwpj//, nJ, 25. D. Bccli, ‘'Implementing a (rainsharing Plan.*
13, Mat
no. 2 (1999): pp. 7-11. CuiHpanjca Need to Cwgmxjnw B«qio
Januaf)-I'’cbrujry 1W. p. 2.'«
7. AD. -Sujkfrtic and E Euthans. “A .Meta-AnaJysis
26. E.t- r J,«ler [ll, C..F_ Udfr^nl Jt. ind I- CJiuig,
of the
“WTM, L\ai Sbu -BasL-d Pa); and WTiy.' P
ESerts of Organtiauoiul Bdtavior .Moditicarion tm
«^nrt'..Man'h. April W5. p. 22;»nd-<
Tkdc
“Sevto-Year Update ..n hii]]-Ba..<d Ra)' Plan..
Peffunnarne.*
9, Cited in S. Caudron. “The Top 20 Ways to Motivate
27. Cked in E-E. JaulerllL S X
Employees.” MwTty Wrzl, April .3, 199>, pp. 15-16. See
Ledfordjr.,
al5f>B XeUon.Tr> Praise ”LVC . September 1096,
P-IB.
kww^-Ba*. 1995). x*v«»il
9. G. Flwm. ’Focus and HcTiUhty; Frudcntials
2«. -ttil.-Ba..e.. Pav Bo...
Rewards
Morale."
and Recognition Program in -Action,” Hwfe/prze,
,, M, K.n;l,nd. -Its UHa. Yon P- h«
July 1998, CHAPTER ti
p. 34. 2. For Q of rhe national mndd, vae f-f liarrisoo.
10. “L<x>k, Movie Tickets: With Budgets Tight. The XLattajierrat (MsicH Mukatg .'ti) pl fBoww:
iiffU^nve aSb/llin. 1999), pp. 75-lOZ.
-Alternatives to Pay Xacteases Emerge,” WiZ/
2. ^iG.Mnrris. 9rij fi {Vppar
SrrrcfJwrwA
Saddle River, Mntiee 1996% p. 344.
S<7tcmber27, 1994, p. Al.
Il Crtiai in AMU Sunnen, December 1994, p. 3.
I-' Jd.. Coaon, /mokamrof (Newbury Park. CA:
bigt, 1993K PP J. J4.
H- Dwl.p. 3.
’W SfeshkiD, •Pamcipative .Managemenr Is an
Ethical
^®l*tati»T," OrgtffffstfnmsZ £>|fl^»nii7. Spring 1984.
 Y
f

J
life
IT. U KiAIhcij. Epoyf iw MaraJ Drt T>t .;a||
vd 1 (Sew Ymfc;
flc Rnu. 1W l> iiml I.. Kohl berg. Efvv i»
Crearinn in /Jrrdbpw*®^ ff** of \t9ra/ ,q
Chyaarawim*
(Xvw VoHi.’ H-irpcT ^c R***.
Avsac*. Fall 1997, pp.
IS. Sec, foT t’T^inplc, J. WU^tr. *‘.Man»gefs Mon)
42-*2.
Reasoning: Axsvssing 'lltcir Responds in Tlirce Murg
4 R.U W<wxlmaajF. Sawyer.-udRAV^"’
Toward a The^-y .jf Dtkiom^s.** H'/nan l^ebrtofi‘.Jv\y 1W. nv 6^7w.70J-
’ 190). p. 298, SB. Knuuw 4od R A. Gn cal DOC. •Rthicjl
5. VA'JJ. fkirdon, 5r*Yf7?< (Ntw Y<»rti MaLmc :n Busing-*’.: BehavUirJ Iscucs ^ncl Cdncerss,*
7«<nw/c/*Blw«cjyh'fWn, May PW2, pp. 36^77.
Harper & R<»w.
V>. S.N. (2hjknv.inv and .A. Feldman. •THe lU*)
iS'cL in T Scenes. -Crratiut)- Kilkrs.” Taken." iW.pp. 40-1).

J«waiy25. l905.p.6< 20. A. WiWavtky. Tbt l^Mes fh< Pn^

(Bc*M»n: Lirde, Bn>wn A (!*»., l'*»4)

7. M. Rjz^nafl.7ih^**w* .litfiwxrh-f Dcfvi^J Alaimg. 21. NJ. Xdki; tHTvrfiTThnaJ Uww/«w
>rd rd (New \«L M dey. 1WJ. p 5 Pfiwz't^, 4th cd. (Uiiirionati; Suu±we$tem. 2002). pp.

h. See H.A- Siiww.. tJtniMfrrarK f ftrhai nr. 3rd (Ne*

Ynrt;. Km- Pies.. I9’6); atid.l. Forester. "Bounded 22. G F. Cavanagh. U.J. M<^>erg. and M.
karion-liry fli^d diePcdiihsnl .Muddling ValasqiMv. “T^
Through,’JAddre Ethics 4*»f Organizaaonal PolkicK,* .dtfdrmj
.74toM»riTrtfni« January’-K'brutry 1984. n». 23-3 i. JiiumiS. June 1*^1. pp. -W -74.

9. U.K. .Agon ed. istunwn fn Orx-''u'irft»nr (Newhiiry

Park. CA S^- ’‘W»; and < F Be Ming and N.L. Eckel.
CHAPTER 7
10. .Asdi'xribcd
“.AfaUng Sense Our in H.ot A. SiiiKXi. “.Alaking
lnnunon.”Ji*Jriwi 1. See, for example. R.K. Merrmi, .^rnw/ anJ
Managcroent
^.Mlrrwcrwew/ iNru York; Free Pres*. Wftg); S E.
Decuions.
£m«r/7Y. KeMvary 7*he Rule of TnruiiHMi
199|, j^». 46-4" :tiid Fnioiirm,’
G. Kkin. iwrw^’ JacksQn and K S Schuler. W.Meta'Analvxis and
Pfi^'fr’ Ptttpte yfitkt r)rtiM*Hi (flambridge. .MIT Press,
Atadffnt
Concepwat Cririque of Re«earch on Rok
and I’E. Ross.F.feiwtrvr,
of
’‘Fhsb February' 1987, pp. 59-60.
vt Genius," .\jabigQRV»d
U. See, fur
Nn»en4«r 16,example,
1998. pp.Af.D, 98-1Cohen.
fH , j.G. .March. Role Conflict in Work Settings.’
aadJ.P ffeAar
Ohen.
12. See “AJ.G. (iarbagcTliyrapson,Can ModelOrjjww/sjs/awr tn .iction (Neu
<fi O^anUabonal w*
York;
(loke.".MrGraw-HiU,
.-Ww/JMirrtf^XY 1967), p. 123
Sriew QttsrfrWr. Alarch rfwrf Htman Dean^fi fifes, AugU’t I9H5, pp. 16-78;
1972,
B. ex.p^. l.indhoJm, "The M’a ticv of‘.Muddling Y. Fried, H, V Ben-Oavid. R.B. i iegs. N. .AxriraJ,
Tiiniugh.'"
1-25. Pttb/u . IduimsrrMMt 3?r, wu, Spring 19^9, .ip.
and
79 88. T’. Ycxvrechvahu, “ the Interactive Ehecrof Role
Tvenkj’and D. KaJmeman. “Judoneni Vnder Conflict and Ryle .\ihbiguitx* on Job I’crfonnancc."
LMeenamh- Heuovuo and Biau^’ .StMW, Jtmmai a/ On atid Or^aniz^tiouai t^sycbtiio^.

Squcjidier March 1998. pp. 19-2"; and TC, Tubre aridJ.M.

IT' 1124-31; andJ.S. HamnuxxJ, R.L. Kewxy. and
It Railti, "'TlieHiddenTrijwin IXtiwxn M^^4np"
biantrd ^Hsrutsf Rfzin:, Seiitembcr-Cciubcr 1998, pp.
4"-i8.
15. S*v B M. Slaw, TXe Fu’aJation of Conuniunent
to a
(.■Mirsc of At-dan. .-krfd<T»r» <^y’.Vftfc4grw«/ Kreien
1981. pp. 577-87: EQ. Scliy.«H,n aod P^
floUiun. “Psychologk*al .AQte«x denK of
EsaJation i>f
Behavior; Effects of CMme, Respond Mliiy. and Dt
1906, J,p ,86-94; and H. Akxin. “Uxiking Forward
and
<-ompU-riun and Sunk-tTosc
Collins, “JacL^on and Schuler 0*^85) RcxKiU’d- .S
Mexa-
AiuJyris of die Rrlaiiiniships Betw een Kok
AmhigDUy.
Role ConHici. and Job PeffonnaMve,* Teimu/ tf
yiimagenterjf. vol. 26, no I, 2(K)U. pp. 15^-69.
2. D C. Feldman, “7 he Dcxclypmeru and F-
nforecmeBt
of Group Sdons.” Atudc/Hy ef .Ui/fliiKfJflf’W fSevici'.
ckiixn January I9b4, pp. 47-53; and J.R. Hackman. “Group
IXcember Infloencvs on Individuals io l>rgaoizarions*pp« 2'5-
50
in M.D. Donueitc and L-.M. Hough <eda.K of
.McGwtK MusmaJ anJ Chjfa/it zari^uaJ

{Falo .Alto, C.A: Convuluiig Pvw’bohigiM* Press.

v«d k 2nd ed.
u .Aw an E«ab6o«nJ.( xnnmitment Frweis
D«,6cm JoenaW <4^^ 1992K
pp- ItH-l). pp, 235-2* e
3. F. .May*u, Tbr Hivrun Probtmu e/'ea InAssmtl
Cft'dizuriiM (New York; MacmilUo, 1935k and

FJ. Roechh&berger and WJ. Dickon.

and tbe iVoihr ((.^arabndpe, MA; Harvard Vnivenity
Press. IQ39).
 , sominer-, T- ’"d R.K. Hon.ir, "Woric- u. E"dnote,
CJroup
r-b«W*-‘ Otlo'-tr ifXK, pp. 627-46; HZ., ApTl’.Xr"'’ Vi''-'’*-’
JB Copper. 'Tl^c Relation hccw'«en
and Ptrhiniwntcj .’kj!
Jnfe.^T8rion,’'
f. [b«d unj^- GiJoon, J .M. IvnnvcvicK amlJ.H.
^uKHy,.lrM khiuniz^ri^vt, i^ih td. (Du»r RiJ^. n.; invi„,
'*'^S3riJ^-|(ir>ridl Divcrsirt *' ,lif. . »<

£j. Thnmas jnd C E Fink. “EtRcts oKkoup Size," Spri..g 2(itH). pp. 1H^vie^,

Jidy pp. 5 / 1-S4; .A.P lljife, HW- -'"^pruflueiKTs™,

(X<w York: Free Prt'ss, 1976}; n^''?r 1 i -M-n num,«« >ndl M

E. Shrf». Gmup D^piSMUs: The /^•cTw^gy A/ I'Sh (e.ls.K rtandf.wi'Gy Muitriel i'
McGraw Hjil. l9Al>. Psychralnpscs PTCKS, p. 23o.
VV Alnedc. ’Die Rjcblhnkn dcr Lentungs- ‘^"’’'’■•'.‘'SowandGniforraity
I:i^x^^alo^rte,’' 4 (1927): pp, to Pre^res in Informal
.Si c also n..A, K’ nnil B, Manin,
b’icas} Spnng 1060, pp. ia2^K7.
-’Ringel’b‘disC(>vcred: 'ibc Original .AifideCJiiWM/
May 19S6. pp, 936 41. 16. J.A. W^sgiiLs, K Dill, anJ R.D. Schwartz.
“On’Stata-
9. See, forcMinpIp. J A Shepperd. ‘ t^ducriviTy Loss
Liability',"' Apnl-jMay 1965, pp. 197-’09.
in
feriiirmarce Groups; A Motivation Analysis." J 7. J. Greenberg, “Equity an6 Workplace Scams: A
Field
f^Wojjrta/
Experiment,’ Z^N/TW/ uf ApftJrtJ November
gs^rfmjanuan 1993. pp. 67-bl; S.J. Kavau and K,D. pp. 606 H.
Willjatn< •‘Social LoAfiog: A Mera-Analysis Review
18. V.H. Vroom and JVG . Jago, 7fe€
and
Z« 07g/wt?flf^yw G-’pper
llrforeural [nTcgraiion.’T^'jtf’vwZ ofPcir>/iut(ity(tiidSfXiai
Sotidlc
iFhrMigv'. OfTirbtr 1993, 681-706: and P.VV. Mnlvcy
Kivcr, NJ: Prenrice IMl.
jndllJ. KJfin, “The Impact of Perceived Li?afing and
19. S ee 1 .L. .1 anis. w 1* (Boston: Houghton
Collective Efficafy on Gruup^n^al PriH csscs and
MitHin,
Group
19ft2)j S. Smith. ‘'Gnyapthink and the Hostage
PtXormance.* Orgaaiz^tiunat fiehaihr and
Rescue
.^prll 1908. pp. 62-87.
Mission," nririfif Jviimai of r^fitica/Sde/a? 15 UVtMXpp,
10. Sec. for erjiriple, S.F.. Jackson, K.F. .Mav. and 117—23; G. Moorbead, R. Fererce. and G.K Xed:,
K- Whitney, ^Understanding the Dynamici* of ’(irnup
Diversity in Detn^ion Fi a scots Continue: Space ShiiuJe
Deciston-Making Teams,” in R.A. Guzzo and E. Salas C^ailengcr and
^eds.), TrsJN Effect a rnrti itnd Dechian A/rft/wg m a Revised Framework.’’ May J 991, pp.
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510 SO: andJ.N. Choi and Al k'. Kini, “'Fhc
Orgjiib.flrional Applieauw of (.rwipilmik and Iiv
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•W Years of Research," in B.M. Staw and I..1.. 20 G Moorhead anJJ R. AbulUnari/Ar. Empjncal
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Il ALE. Shaw, TupiauiSocialPiyeh^lo^

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356.
Sk.up,” w X^S'd M A
12. YMl, Wa&un, K. Kumar, and L.K Michael sen.
Hok.RinehartandUuisten, I ■ X individual
“plural Divenjity s Impac t on Interaction l*roce« and
V Kns« ."J nj. r,
Romance: Cjwnpanng I lomogenwnis and Diverse Risk- liking.’ “}
Task <lW-’),pp.7'-d^' k. -SeeJ
'mufK.* y inrt/gttitenr Jawnal, J une 1993, p p. 22. S.G. HerMns ,nd K.
’''Mo*. Group (niJI
 X. A.'
9MIWVB
|> K. KIwG “Wortimg on W<rrld 'Bme," p. 50. .
s. PC. 14 rhi* mcjtkl 14 ltt«a *»« M.A. Ompi-m, EM.
and G I Medtkfr. “ReUnons U'nrti
RepuMk -fChin..- '•'fT’•■I-M GharacrerMic* ^nrl rffci*uvc»Hss: A Rcplicjiion >nd

f
oZrmk, ,.P 56*-^': ««' J? KMcrisHm? Summer V>'*i.pp.
42M-S.\ U bJly^ti and I St kurl.K. ’ An F.Maminaiio„
CUktti. i-tit »iicl f’" jL' (he UJaiimiship Between Wrrrk (Jnwp
•■'1’"^ IW.l, |.p.. Glwr^eernMit,
PerGurnmux- Omt More inh> the Urvaih." Perj^
CHAPTER 8 ?<r^ W?gy. Auminn 1'/^*. PP S.(',.
I)J’.. BJIIVV. “WTsat Makes 'R'aius Wurk: (iroup
1. Rtfsed on W. Success,
Lffex-rn-crtf*- Research fn»m ihc Shnp Hixif mthe
auyal.“T«m“Cxnn>*«'’
Kxccutive Siure,’'7<r«f>«/#A7/TW<2fi««iZ, vij. 2J,n„
Hft*,<VinU'r IH, i'^/V.pp
2. io C. I o rm
ill son, “Teanisar j
Mat |K W PP’ A.D. Shulman. ’ Putting Gmup
WtirL
). Sir c»mpt... D. •l-ra^«.W. ■■f
IcdiruitnQ' in hs PUr Cmnmuniuiic„^
Fiufinuf Kngiiand-
(HMMI Work ( aiiup PcrformaiKe," in S.R. Ck»g.
Wiley. IWB J R katzx-nh.Kb ami D K- Smnh,
WVA/JW ((3nslni): Harvard Business Sch<?vl (;. Hardy, ami WK. Nurd (eds I,
Press, VMii'ttt issjHi U ritHlon: Sap:. IW'O, pp. 1117-21;
iwj); S A. Mohmnn. S,(i. Cohen, and A..M Mnlnman,
Set man md J. Wright, * (ram l-ffeccUvnw: Riyood
Jr., 7ww-/Afr<yz?rytfy//&r/^o«j' (San I’rancibcn:
Ski IN and ( >ignid ve '/f ftridto
J<»sscy-Bts.s,
199<>; and IM.. Kirkman and 8. Rosen, “Powering June 199V, pp. 376 ^7; PJ. HinJh. K..M. C-jHcy,
Up P. Krackbardt, and P. Wholey, "Ghmisrnjc Work
Teams," Orginjti.irnjtfaf DyMuii.'^, Winter 2000, pp Croup
4H-/k6 Mcinhers: Babin Ing Simibrin\ (amipcteiKe, and
4. See, (iir example, ‘Tcims* Jwtirfifi. (ktoher W6, p. Kamil hl riry." Ora.ftiiz^dc/fijl Hfbavinr titkl
6Q; iwij Jixrwon. *'lwins a( Wurk*. .March 2000. pp. 226-51; and J. Kat/enhidi,
5. D. Dnckhaincr, ’People Powered Oange,” inJusfry ‘‘\ATiai Makes Teams Work.’ ’ f'afTf.fiwftMr. Xoiemto
21XKKpp. 10‘M2.
<Vuher IK, 1999. pp, 76-?fi, 16, This(annpiun.
section is based on M,R. andBarnck. G.L.
liM,
IS, MA. K.M. Pappei, G.J, Medsker,
6. (t. Hasek, “TTc Right Chemistry," IK'erA, Sicwart,
“Rclaikins Benveen Work Team Characterisdes
.March 6, 2000. pp. 36^39. MJ
andNeuhert. and M.K. Mount. “Relating Member
7. C Dahk’, "EXITuine Team?," Fa^t Cfwiutny. November .\bdlry
ICffecnvenc«,” xrul Pcrsonnliry
n. 430. to Work-Team Proeewes and
1999. pp. 3lf) 26. Team EfTet oven css. JPj^vKo/o^June
8. Sec. for ms to nee J.I.. Cx»rdm. W.S, Mueller, and l9<>S,pp. 37? 91.
L.»V!. 17. C .Margcrison and (2. Mf( lann. Ihm
South. ".Amiudmal and BchaMoral htfcrts of AvRMw/.Vra’.Tppowwfrrt fLoixloa: Memjiy Books.
Autofwniioiis 19'XK
Gfviup Workii^; A Longitudinal Field Study,*, letfiicwy IR. D.E. Hyatt and T'.M, Ruddy. “An l’’«mtnad«jofjfe
o/AZ(rwgr«rwf7®«^‘’*^Z,Junc IWl, jtp. 461-76; and
Rdauonship lUiween Work (iniup Cliar«teristi«and
P..5. Cioudm.in. R. Davaday. and I .L. (n iffuh
PcrhinnaiKX’," p. 57".
Hudson,
“Groups and PmdiH'tivHy; Analyzing the (9. R.l, Bcekun, “.Assessmg the EflceUvvne« of
EtfccthriK'bsof S(X‘i<)tcchnical Inccrvenaorw: Anrklnre or Fad?”
S=lf-Mfliwgjng le,nn.<.’ ii.j.P, (;ampWi. R..I. (jmj.lxrll, RvMtmx, August 19K9. pp. H77-97.
and Ass.xiatES (nls,), Pfoiluffjziry i„ Or-^^/iz^i/ttnis (Ssri
Krani.i^rr:JoMcy-Ik«, l<J8R|, pp. i'H-.l?? 20. D. Harrin^oii-.Macldn. The Ttaift fitifiiiiag

H. S. Kirsncr, "Pasur Conijemy," fwrCoM/^trrv, Mavi„ (New York; .AMACO.M, t994K p. .53.
9. R. .Mjynjr,). ".A Clit.nt-CenrfMJ firm's tx.sons
2000 nil. 162- 21. r.D Sdicllhardc. “Ti Be a Star Aoiong lu|uab.Bc*
Tcanwijili,' N,ilnn'i Bltmiru, Aljufi 1997, p i’.
,
;■,>
111. O • '7
.M. ■Kn.nserri, SAI.
Bnii,dli,-ilow Ha^e^-f>J.^dson Dc.Mari,:,
UsesCj^s- Ten/n Player," U^z/Z.SwrJaftnjtfA April 20. 1^* P
a..d
fwinlwnal IcJl...." PunhiMg 22 C. Hym<»wiu. ‘How to Avoid Hiring the PHnu
U JI f U‘"L- 7«ms: -le. I,...,l.,s>. a„d the
n«..«ficn,»...p.ntVmjpiz.i.i</purfl,aMr»j(/jrihivcs/IW9> nonnns Who Ihiiu Tjatnw'ork.’'
WofkpiMt
(Xtivvmbcr4, IWO). ..fthe huwre,'zfr«J«„ February 15, 2(ltM), p. Bj.
fanwrit, Augus. I'm, pp. l?-2fl. b. l>u,n^
CHAPTERS
Inno$n.:joss9-B»s. IWj.
1- SIT. for cMijiple, KAV TKUIUS JuJ W. 11.
wirS: ""
S<jncy of M.iiGUKrial Literests widi Respect to<
of 1 June 197ft, p. M 7
: SeeJ. Riu,.,, Fluemy in F^igltsh Ateuw-'*^
 /^January JK 1*«^ p. lA: and
CiH
1
7^inn*’*b*s f Jfftfcsed Rebw Heatfly
Jetlrrxer
( jwdu*.***^ Sepiembcr JO, IW7,p, <».
A2. York: (Ntw
. I'h'Hugb rhv Gr4i>niiR? FprVff
y^n..ni'U-rr.:d.
y^ienotK,S,K.dy.rfUad=rsh,p:Q.„?X'?;^-^ '
4K ’■'M.uiJgrTiieru Conimunjc.uion and ihv
GraiKunc? A’ri /r .f, SupfcTnhvr-
CXt.^ber '•■' T~.* -U.
Le.4krsh,p A kS’Cl'
< H S««''n Porter. A Saidv .«f rbc I
(Jrjpevinc
J )rgiiijzatitin.’’ Pr»Tr n/ir/ r*w6<>/'j^
:^mer
S. ’Box*'
in' ft A in The E-Mail," UK4
tl»jW,p. 5R- Did Til at Rumor Qy4,TerZ>, Simiincr lv>5. pjh U?-^T.
“FQH
g,(x>ine I’ n'l^oyxes I Jon»e P<2s for SS a
P ’^4. 9- G.B- Graen and M. t'hl-Birn.-Kda6a.tAhii>B«d
Month.*' Apfwoavb to Lcadvrship: Dcvdopmtiu rif I-uckr-
Jinpi//*'*'* ijd<innaoonu‘w:Lc«m> (February L 2000). Member
u D Tanner. 7*^*7 DewY Vf/dewun/V, and Mtrt
Exchange (I .MX) 11)0017 ‘’l Leadership mer 25
Yean:
(New York- BaUandne BorAs, 1991);
Morw. Ainilying a Multi. Domain Perspective?
and (99$).
t T Hall and .M.R. ^mrr/r. SuimiK-r pp. >1^.47. yx bayerand
p, Tannen, M 5Hall,
(New-C York* VVjlHam
Ctt/rtrrfZ
S-(;. Creer, 'IKvcJopmeni ol Lea«l<T-AUnibeT
£j^?mfcw (Yarmoiifh, ME; Intcrculiural Press, 1900);
Kvhang«;
JLE DiileLJ.S. lAtIden. and J.S. Hi IL “Intrnnidoaal
A Longitudinal ICAI? Ifjdrwr*
CoffitnunicflUon^ An Fjojcuiiv'e Primer? ro December 190^,. pp. 155^67; C k. Gerstuur and
Kerrsuffv, D.K
Jinttiry-Fehniary 1991, pp. 202.5: and .M. Munrer, Day, “M A'w-An I lytic Review ofLcadcf-Mcniher
“Crub»-CuJrvral r.iHiiiHxiii)cauoii for Manager*? txchangr
Herraw, May-lune 1993, pp. 60-78.
'ITieory; Correlates and Construi T Itsnes"
7OW>MZO/
Ii. Tbisscccon is Iwsed im NJ. .Adler. />Tfrrnjrr/^wi
rXeember
IQ. RJ, HniiM*,W7. pp, >i2^-+4i anrfC C cjrixinkr
“A Paili-CrtwlThuory
/^/wiTBfwttf rjf Or^t/utiarroftal Bch/rrtor^ 4th cd. (Cincinnati s Cogb'scr jnd G.A. St hrieshein), “Fjtplonng Wxtrk
Kftcctivmess.•^ibHrniilratire Sf/fr/ir y^»'o7(TA, Sepreunhcr
SiHJThwrtteri], 2002), pp. 04- 06. L/nit
CHAPTER 10 1971-
Cvrtcexx pp. and
?2l-5«;and R J. House,
Leidcr^Meiidier •‘Ibt^-Cioal
Exchange: A
Theory
Ahiki.Lenl of
I. S.A Kirkpatrick and E.A. t/odee. **Leadersli^: Do
Per.^xxtive?
Le^kr^ip. Ltfssons,fl/’Orgrfrr/srffwnrZ tfr/wTW,
LegiJvy, «r«l a RcJj-fiuulaKil
1 raib Matters" . •/ .VtfWrfgwwrJtf CxtiVth'r. .May
Augibl
lire on ,
109l,pp.4Si-60. 2000, pp.4>J7-Sll.
QwfKfiy. Fali pi»«
2- R.-M, Scogdill and A.F. Coons, cds,. h/nler Brrbevmr' /rt
Or«TT/WwrfBdA/w.ii<tv«rz//, Research .Monograph IL SecJ.C WoW'irH and L.Z. IJska. "Path-O’jl
No. 88 ■fheorie-. ofUadrrship: A
(Columbus: Ohio Suu Vniv'ersity, Bureau of Mmugemfia. Wiiirr pp- K??-'*'-
Business
I’. V.H. Vtwni =...3 PW.
Rwtarth. 1951). This research isupdatol in (L.A-
^hncsheim.C.C. Coglhcr, and L L. Ncider, "Is It (Pirtsbureh: Umrersin- i.f PitolxirijJi I
1n^'t*orthy • .1 Mulnpk.Le<xU.of..Anah’«s rca.
p*«uiDiDahijn of an ('(hio State Leadership Srudy.
I J. \-.H. :.nU A-G. Jigu. Tk<
with
hnplicjoons for Future Research.* Let/drnbrp QiMrterb^ Mun^ging P^ni.i/Uthi«« < ,!’i’rVmom and
^imer IW.pp HI^S. I<ThX,
R kahn and D. Katz, ''Leadendnp Pracutvs in Snulv uf ].w.ler i’airieipiuon,''/a7«i'r'h? (}<»»
Rcblwn SuaiincrlWSPP
^luctn-icy and .Morak? in D. Cartwrighi and H. The n^terial m ihb
^-ander (eds.l, Crw^ /XrwmLxr Rf^trnb ttHtJ Tbtfity, 2nd -Ui-nen a. Ma.ugen: W hat jowi, pp.
(tWord, NV; R|»W. Peterson, I960) <5rpan.zano..s" (.«r->- '♦i’V
R.it. Bbke andJ.S Mouton, Tie .Wrfwgmw/Cnd Hd-hJjS.Ucigewn, Ibeftiv^ lowlk A H. F»^'
1964) t'dv. V'Ti^'■‘■’u-Z s;d;\ vZ-
I l« Lanon.J.(t. Hum. and R.N. B. r Jchnaon. sL„,,,l,<r (-»«,pj*-
’^IhcC^rear Ili-Hk Lradci RvhavwT M>lh: A .AnaK-Sls.’ tknjer wJ
•***<» *»an< ktaiii . Rai.<“ luidruw
 Bri^avfor t/fid i/vwim Pfr/arfljant#^

A. H. '
rjigh..«<;. .VUH"rani- «"'* »•*•• . 1978. pp. 575-403; P.M. Pod#ak«tF, S,B.
□hd .hv Fv4h,..ri,.n 7,.7B. Ro»-n«r. WK Bcanrwr, “Mm-Analyris of the Rdatj mi chips'
<;^;.nrrr 5.TrA> n i^r« A/.^^gnr YC^. Kerwecn Kerr .»inlJtrmkr'« Sub^tio.ks For l.ead^j^
(hford Unh^ersity Pre«. K, bJtiplovee Attitudes Rok PticvpopHs. jud
cfAfiyhtd I'sychohiiy^ Angi«» I pp. 3 >
Ubnicn Rule," NmT.nber 20.4OW’. PP.
J Al. Jentuer and S. Kerr, “Substitutes fur l
75-S4: and -Arv Women BeWi LeJdcis? t- A Ne«> v
acadcnhip:
Htrrt/«<;w,Tj:,iiunr>'2y. -’(»!, p. 10.
I'hei r Mean i fig a nd Mca sn rr m « n 1 - •< >>nttf
IV J. A. Corner and R.V Kare-igo, -‘Ikhiviorjl
Mud
WraenfloM' of Charbrnaiic Leaikrship.' pp.,«- > ui
Re collections and Current ObservatioiH,” L^tdersbif
J.A.
8. no. 2 (19975- pp. '»5-l()l; m<l D.A.
Conpir. R.X- Kanin.p>, ii.J asx.«;ia(cs (eds-). ChanmoM
WrirfirtaK
(San Frjc,cisi-(.:J<wsey-Ba,^. 1S’«81- an.lJ-A G. R. Ramirtz, R..I. House, and R Furan am. ‘'Docs
Conger “Chanjuiaticand Iransforaialinnal Ltad^ship leadership MaIUT’ CLO Leadership AtirilMkCen and
in Profitability’ L'nder Conditions of Perverixd
Organiutions; Au In^ider^ Pcrspeciivt wl These Envirosujieg^^
DOTelopingStrc-OTs .if Researdi/' Lctninyhip Qiunf>-ly. UiiceTtainty.’ Jr^dewy Mtfn^grwfnrJ/ihnjtfZ,
Sticnmcn* pp Febcuap,
16. H.J. House,.!. Woyvkc. and E.AL Fotk»r, 2<lOLpp. 134-45.
“Charisnianc 27. Based on S O. Poon andJ.G. Hdmes, -'IK*
and Ntmcharisiujac Leaders; Differcftccs tn Behanor Dynsmi^a
aixd uflnterperwoiil 'I rast: Resolviag Unceruinty'm the
Effeerivenew." «n Conner, Kanungo. and as.sod3re$ Fate
(cds.), of Risk,” in R-A. llmde and J Groebel (cJs,), Cwy»p-
Clwifttfiitu Leffdersi!!}:, j>p. I0J-JO4; and D.A, Waldman, «^
B. M. Bass, and FJ Vammarino, “- PnwjritfZ (Cambrid^, inC: Cambridge
Adding ro C.ODGngtmt- Unri’ersicy Press, IW15, p. 194. DJ McAllister,
RfW'trd Behjvijir; TJie Aupnentiiig E(?cet of •‘Affecr-
Charismatic and Cognidon Based Trust dS Foundadan.A fur
Leaden}lip, ' c* Ot'^a^NZHTi^fi Derember Inccrpersuiial Cooperation in CrgaiUiations,” AcaiUtt^ if
February 1995, p. 25; and DM
l9'M),pp.581-*^4.
Rouiseau^ 5.B. Sitkin, B.S. Bun, ;ind C.
r. J.M. Ho well and PJ. Frwi, ".A Laboratory Study of
Caraerer.‘’NotSo
Ch Sris made Leadership/' Ojxrfw/srtZ/wW BeZwz.vtrr Different After .AU: A Cross-Discipline Mew uf
anf/
rrust."
Htanait /.>f4vw? April l’^89, pp. 243-^^.
Acadmyufyiif^fag^tfnr 1998, pp. 39Mi)4.
1 This dcBnnion is based on At Saslikin, ''The 2fl. FL. Scbindlcr ai’hj C.C. Lhomas ’'The Structure
MM on ary Leader," inJ.zV Conger and R.N. Kamuigo of
(eds.i. C/w3riww?;r LWmF/p. pp, 124-25; B. Nanas Interpersonal Truxi m I be Workplace,* ftycifo/figw/
LzfWJizjn' Lftkienhiii (New York: Free Press, 1992), p, R; /^d/wrtr, October 1993, pp. 563-75.
N.H Snj’derand M. flrares “Lcadcndiip and V’lsion/’
29. J.K. Butler, Jr, and F.S. Cantrell, “.ABchavjocil
//wTzow, J amiary-Fc br uary 19*+, 1; and J. R.
Decision ’I'beory Approach tn Alodeling Dyadic
LuciS “Anatomy ufaMsion Sucement,” Mifriagewart
Trusrin
Febniary 19*8, pp. 22 26.
Superiors and Subordioaces,’' /^VC^AJ^/W
19. B. Nanus, Vishtuuy Liudaybip^ p. fl. Augu
20. PC Nutt and R,\V. BacW, ^^CnfungMsion." st
Jwinizt/ Iff XtftHagetnfjir In^ujry, December Ip, 1984,pp. 19 2fl.
21. Based on .M. Sadikin. -The Msionarv Leader,” pp.
5 0. D. AlcGrc go r, i 'he Pi ^ifeainnai Maiagrr (New YoA
128-30; and J.R. Baum, E-A. Locke, and S.A.
.Mc(iraw-Hi1l/l967L p. 164.
Kirkpatrick
“ A Longitudinal Suxdy ofthe Reladon of Virion and 5 L B, Nanus, The Ed^-. The An* w
A’ltdon Cmimujucddon to A’cniurc Gmskih in {^adiiibip h> It Tn/Mmt Uvrit/ fClucago: (xinccruporaA'
Entrepreneurial BooL. 19895, p. 102.
February |9Q8. pp. 45-54
32. Sec K-T. Dirb, 'Trust in Leadership and Team
22. S. Caiiunid, “What Team Leaders Need lo Know?
Fetior*
February 20, 1W5, p. 9.L 1-

maix-c: Evidence From N(LAA BaskEth^,’'7o/ow2V-

25. rhid., p, lUO.
^^P^^
«. R.S. XA^lHm. W.C. Byhara, ind fi.R. Dijun, ZanA rtycM?^. December 2000, pp, 1004-1012; and K. f.
7«rfSan Francisco: Jossey-Biss, IWKp. ?lfl,
 fc, Pri'tev vol. SO (Pik, Alui, CAs
19 277
t.lR-ieu..|O9Q),pp375-«,.
•s llitf ’• “Niihnd^ Trusts
G.R. hm,, me ,^nlXT 'u7l .^'■'
L’ 8.W f.irnpkieiv' -N.m' Whur?’ Awrwj-ftnurt,
X<iMr-Ap^> J’>«'App ’•*’ ‘’-i.I K. Biii)crJr.,’qbM>rd
•'^'^^•^"^ngCortlinnm ofTnw; Evobrtion I'ehnury pp, '
^/iCrmchw'n Trust bm^^inC7<w>M;o/A/«niffi<«ffli.
c-rtcnlwtr PXd, pp- ’-65; and R. Zemkr. “Can You Pnlme. ir < ><■». »M F.nd,,
Tni^'" February 2fKXl. pp. 76-fil 11. See, h>r ia'ifancc, R c .
Sz/f-f'e«frW V •
CHAPTER 11
J RjM. Kiprer, "Prjwer Failure in Management
Circuits,’ ln.pr«si<.n Tx.i’cs
65.
• >''-f»4, and C. K. Mevens aiul ,\.l., Kmt<4 -xni.'
> J.R.P. “ Ibc BaMTs of Suebi
poffCf/’ CaiittTighr (cd.), SfitiiJa bt Sotiai Ajjprr R<(,+r lmpn,.si.«,: .A, fidd Study .rf .^mhcL, 1.^^**
(Ann jlrtx’r: l’aj'x;nKy <»!’ VUebigan. butirute for Minitfcwr, IJ^ngJnl. InUnicws.-J^unw/pflJ^’'
Social Onuher 1995. pp.
gesttfdt. PP 15CUI67. !- '■" /mpr,r!io» iVL
), L>. Kipnis, TFf PKivrAyAilfry (Chicago: University Gardner sml M J XhninU “Iniptc-.suK, .\bn,gm«rt»
of OrpanizanQus. J^KnWnfMtf/w^wrmJxuH. 198B, n
^js
ellipsePP’
and R.B. ( Wini. ’ Incbrm Tactk’s of Image
4. TIE Emerson. "Pnwcr^Ucpendente Relations*’
MaTugwient
(1962). pp. ?I- 41,
Beyond Backing,” pp. 45-71 in Ciw’.lruie and
5. ri. MintJberg, Pwi er fn afut Organ/iotidfn Bc«enfeld.
(Vppcr Saddle lb ver. NTI’ Prcriti-.’e Hnll. j ^>S3). p. f37Fprr.<x^?;f .*;rf/rjj;rtne77r in tfv O/^aitizdbMi.
24. IV R-A Baron, "Impression Managment !»)•
6. Th« discussit’ii is base J on J.N, C'levels nd and AppbciTO
M.F. during Employment Intcrviws The •'Iki Much 4 j
Kent "Sexual Harassment and Pcrccprirms of Good
Power An Tbiug' EffetV ip R.W. Eder nnd<?.R Fems7>f
Urider-Aniculated Relationship,'' Jouniai tfVccafiotial F>«;//r?Vz»zr»r /i'.Htfn 6. jw.f Prarfrzr
Sriwrw; Eebruar)' 1995. pp. 49-6?. See also A.M. (Newbury Park, CA; Sage, 1989), pi>, 2<)4-l S:
O'Leary Ke Dy. R.L. Paeuold, and R.W. (JnfEn, (.ulmnre and
‘‘Scjcual Ferri:», "The Effect ot Applicant Imprewion
Harassment as .Aggressive Rchador An Actor- Managewon
Based Tacdcs on lnrcp.icwftr JiwlgniciUi”; and A.L.
Pergpecu*€,’'z/£tfdtrfly Rreien:. April 2000,
Krislcifand
pp. V2-J«. C. K Sreven.s “Applicant Impre^^ion-
D.J. Vredenburgh andJ.Ci. Maurer, “A Proces Management Tacco;
kranewofk tifOrganuarionsl Politics" ^cArwww, aiAPTER 12
Ffttcis on Interviewer EvaluAti^'ns and Inttrvivw
January 1984. pp. 47-66. OutcI lines/ in D P. Moore (cd.).
< U. Harrell andJ.C Pcu-r^icn, “Patterns of Political ActTiicMy iffMuMgewfrtr C'lnffn-^tn P.illas. Augter 1994,

Beba»3/n’ in Organizations,’’of.Manat^ent pp. 127-51.

Hall. 19741. . f.
/?rtir^July 19S2, p 4<?.C Fora «ii scission of the 14.
2. Gilmore S«-
and Herns,
KAJehr.
’The Effects ol Applicant
■'A.MuJrir.eduntl^^nBn^n-f*'
contro- Impression Mamgcincnt 'Gchcsop
Buichts aiHl OctriirerU<
IniaMewcrJudgmems."
'crsies underlying the deHniuiHi of organiz.aUunal
15. G.F Csvjna^h, D.J. .Moberj, uml .M. ''iTie
policies, Sitnon-s and R S. Ptirrsixi, ' < j
EthiLs
O^nflia of Organiuliuoiil in PoIitE?,"h.p Ma-gen.nt
«i; R.S- Cfopan^no. K.M. Ksanar, and D-P, nozemar, ftftwir.July 1981, p|i. Jfi3-H.
lnnagr..upTrusiA7<’^''^^ “Ihc
Cryamzatioiul Politico, J us dee, and .Support: Their
^iffereiktsand Siniilaritivs," in R.S. Crojxiuzano and I JyT,n.ic .\»1UK ..t
^M. Kacmar (eels./, 0/x#nj^rww/ /•W/ryr/, jVi'/rAY Imiagn»upContlJtt JnJ<jh P
ainidtrut Wvfk (iVc*tport. C J •

Quorum Books 1995). pp. |-ig.

Su;. f[.f exj,n,.lc, G. Bibtrnisn, '•j’crst.naliiy »na
-haraqerisdc Work Aiticudes of Persons with Higdb /i
’drrau, and 1 4)w- Pobtical Tenileiuies’ Pf^xbr/iff^cul
(Xtobcr 19R5, pp. 1505-10; O.R. Ferris (4S.
«^andP..M.FaftJi,*p,,|
 endnotes
20 Based on R. Fislicr and W. Ury. Grfrin^
5. The section R based on Rol^hire, .4R?«w<wr Griwj? fn IJ
pp. 31-55. Mifflin. 19«1); Wall and Blum.
•I. K.W. Thomas. “(xjnMici and Procesits in “Ncgouaucns.“ p,,
OrpinizajMWis," hi VLIX Dimnccteand L-M. Hough and Barcniiau Nwk. Negnrwrzffg
ftrtwflri/6.
(»’ds.X
CHAPTER 13
Hafiiib»StQfifr(itKtTu/iainf ’'-d- »
1. See, for mbiance. K l- Daft, Ofgjr/iu.i#wn TTrew^
2nd eil. (Pafo Ahx), CA: CmMulting P«ychulogk*cs Df'/gr. 7ib cd. {CnuSnnari: $ou(hucvtcrn. 200k)
Prt*^. 2. T- Stevens. * Breaking Vp h l*rofiuhk to Do," htd^st^
IW2), pj’ 6H-7I7. llMJiuieJI, r>99. pp-28-54.
5. See. for instance. CJ. Lo«mw. •EHnostoTS?" 3. H. Miiuzherg. in i'ivex: De^igrrinj^ ^rti’zw

F«fT*^»c, CXrgffuiifrrrwj (Upper Saddk River, NJ; Prenrirc Hall,

May 5- IWJ, pp. 36-42. l9B3).p 1^7.
6. IL Janis, (Boston: Hoyghton 4. Cited HI.4T W'<WA May-Jnne 1993. p. 3.
Mifflin. 1972) 5. G. Imperaw, "Their Spcdalfy? Teamworkfysj
7. J. Hall and .M.S. \VjIhanw, -ACom|>arrM»n of Cow»/MwJ<’nujry-Fehruary 2000, pp, 54-56.
Dd.i-’Jon-
6. G Habuk, *^IYe RighrCherusny,” Mumy Hret,
Makinff Perfonnanevs in LsttbUslu'd and Ad-tloc
March 6.2000, pp. 36 39.
GTOli;»»."/e«’i^/ ftrrwyflZrZy itrfd tsofvtl P^hahgy,
7. C.C. Snow, J. Lipnick, and j. Stamps. -The Vimial
February 1966. p. 217.
8. R.l. Hoflman. ‘'Hnmogi neiiv of Mcorber Organisation' Promises and Pay oik. Large and Small,”
Penonahly io
and hs Effect on Gruop Pioblem Solving/'^Mrutf/ uf C. L. Coo)>cr and D.M. RouSs&Ju The l lrtiMl
9. Al. Gncim and t Kcbeniliai. “Irrftivincilable
Ahi^nftaiart^SfKiatPjyihfilv^\iji\y\\s^TY 1959, pp 27-52;
(New York; Wiley. 1999), pp. 1?-5U; and
Diffcrentvb Furee Shea Z<L Could Closure." Hir// W.F Ca,‘K:io. 'Maiwgijig a Vimisl W’oikplace.
R.L. Hoffeun andN.R.K Miner. “Quality and
Jcjmw/. Janiar^' >1, 1994. ji. Bl. 'zIcrf^CT^iy
Acceptance of Problem Sokidoru bt’jMcnihers of
10. J.A. Walljr., Nej^utiatiun: Tbany itnd Praetky^ AfjH/»gew#f«r Etff//rn't’, Augu&c 2tHiu, pp, bl-9U,
HotnogcncAiis
(CThaiview. IL: and Senn, Iletcrogeneons Groups," 7^**^^*
Foresm^n, 1985f K. "(4F.; Just Your Average Evci^’day $60 Billion
^fAbtcmtalan^ Svc'uii
11 - R E. Walton and R.B. zVlcKersie, March 1961. pp.
A Beb/fviorai Themy Family
yf4(11-07.
Labw ^^egoriafiomr .1/7 /biafyAf (ff a Scaai InteractiM <7n>txry Store," Week. \hy2, I’XH. pp. 0-18

^sTcm (New Yoric Mc<?raw-Hill. 1965). See dso R. xAslikcuas, D, Ulrich, TJick, and S.Keir, lhe
12. M.H. Racerman and AlA Neale, Vegdfj^rftBg Rau9na!fy (San Francisco: job^ey-Bass,
(Nevr York: free Pre^s, 1992), pp. 67-6S. 1995); and R.L. Cross A. A an. and A4.R. Louis,
15. J. A. Wall Jr. and MAA'. Bluifl, “Negoditirm??,’’ “Bounslary
7(nrrz*i/ :\cuviucs in 'Boundarylcss’ OrganiaatJons: .A Ca.^
lyAfww.igtwrsrJunc 1991, pp. 276 78. Study of
14, See N.J. Adler, Zw/rnz.'zrrwsj/uf a Transformation to a reani-Ba^ed Slructurc,'* HMvati
Or^jfinizofifmsl U^batiur, 4di cd. (Ctncinnari: South western, Rclarioru. 2000, pp. 841-68.

2002). pp 208 56: and Al.y. Brannen and J.F.. Salk, 9. Tbk analysts iis referred to a
Partnering .Acri>s$ Borders: Negoriaiing conringCTiCt'approach ro
Organizational
organizarional design. See, for inscance J Al
Cidture in a Geriiun-Jjpanesc Jwnt Veiitnee,’’
A^irnew. April 2000, pp. 45 j-87. Penning^,
“SmicRiral (foncingency 1’hcory; A RcappraisAl,’’ in
15. K.n. Schuiib. fnwv (Menlo Park,
16.
CA: S- SRILubnun,
Iniemarional,“Round and Round," K'aB S/rew Jourwi
1987). BAI.
December 10. 19*8, p. RA Siaw and LX. Cumiuings (cds.), Pennivh m Or'i^arii2^Wfuti
Behitvjm , vol. 14 (Greenwich, CT: Jai Press 1992), pp.
17 E_S. Gleim, D. Wuneyer, and KJL .Stevenson,
Stt’Irt of Persuasion," 267-309.
fUigtma, Fall 1977, 52-66, 10. See HE. AliJes and CC. Snow, OjywiraflZaffw/
Snwrrgr,
l«. J Graham. “ Ihe Influence of Culture on Business SmtTwre, <tnei Profess York: Mc<»raw-Hill. 1978):
NegoUarions,’’>W7M/ ^f fnt^rwnn^nai Siwnra^ Sntdia D. C. GaJunicand K.M. Fisenliardf, ‘Rencuing dte
t 7^^ .ITT*- A<u}tidm«maoMl V»lu« i„ Strarrg)'"
TeKh-r Ott (-.ompU of ConflKt Behavk«,- Stmcture-Pcrtormancc Parailigiti," pp. 215-255 in
R.M«
Stau and 1,1., Cummings (cds.), Haftirebiu
JkJjaZ'iffr, V(J1. J 6 (Greenwich, U : Jai Prev., 1994); ainl

I.C. Harris and TAV, Rue fl j, ‘The Strotegy/Siruccute

Dchaie; Ar Exami nari on of die I’erfoaTiunce
f

f74g*kvl: Orford “Baarfun< Vndmnv,*

FwfcuUw n, □««.<».
1- f.Mfte. *W1»e« <MiaJ
OpiMw («, ail"
Viikina^ Pi**. R6lfc P.Rrs. Ektrnbcr IJ. ^Mi.
pp. F»i»**K, «4
•PnanmcK PneruM*.’
C Pofoa; FWM. Frfjrwry |Q. Wl.pp,
B See. hwHMami. .Mj *- J T
J
*Enw* Wiped Our AAut
<’-f • ' '' ** ftam .ApiiM d« S<ve,*
s^rrrrt Jwtrul. SAanh 7. p.
.M. S. fer^ak.
* K« •'J'hey’w AA'iufunf Axw:
AV<5k^4ace Wr»>cy •«
bth,<»jBpw A>«s|.
iXiekymrv ^nd .Un>- CkitAf . . “ Vp*r«M<. A4< WI

Kiuhw TT » <> 2(}Qb. pp, K

y Urf>tfg,wwr7auW,/v?K
H
We«<
P^l.p|> *Hrw
16. Should ^*>u Potir* 5.
F.m(4<^et.*sC'«4*Bf
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f f_ Emcn »nrl E. Tn st " M UL Sofikr* AM
Net} Aen Carehitly/
CM
!!)« t.MMf Texitw of 2Jr77M!i(.
Ouemm Fdiniary 2000, 5,
hn»voivB«i»/ pp
2001.
17. 70-72; wdG. Heth frm,

pp. F!ti.2Q. .A
Februar Dalrnn«*AMqa
and'KeepiapTabsonFAFp
(>»hen.
y
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Onlme/ \ Fetruan
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Q9tfuy MaaofseMU Uinch, AbouBkiai
to. 2001. p 16.
2UIM).P?K
B^nta

92-95.
S ..HM /w/rv; rwntz (Boca
f hi^ncii (rtit^^fyr Ba«s* Tnte. Septemlrr H,
14. L Ciurn>set.*'IYte
Rasrm. fU:
* .V«i45ey»<
gft^ Emrrvmmr Wvh
2CX)0. Se*p TuidtuaFaikSbp/
4b.
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lA- Trwr;
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Cited m PeeonWr
p. KM. lA,
Omada. /br iW.p, D! *.. p. 100.
Xxiinnuntfvckin
21. ibid 'infladiin'
Faw Afiecuig
22
15.FUd.Amerkan
^aerf aorf AArrker
23. IM., Perfurmaive/
p. 104.
>W .SkGr7ir.HiL 2001
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Abvpae*rr.4rgat Swn,>pof
.AUidt
M Hmowr and J. Champ); 24
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inMHfrrhii.
KUOOQ

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2

JBre/tywrrwg Kinard Itusjfxt* tAr 2.1

19. H
P.RcfHjrted
Laterre. •Ixaknxun."
AA Kim. “The
Ctrftmtu: /I SlMfmfrr Divtac
(New
60'Secafid 25.
fAbrkof(
air mJ. Jane
AurU
Boede,* ai erf.VonM 1,
Trw. *.A Newer,
corpuranorti.)amaf>
IW,
HarperfiofliM.
1999,
gpcarcK 1999).
“VVhtfit ‘BiAl co tonelwr Cnrwd
A.
p.45.
1- P
A,
Order*
S
KaHgaard,
R .
^fcr^rtaHce.
V\'ork« “ASAP
f. AV
N UKVI
Beat,* 2t’*10«
p.96.
Emer^ in Internet Study/
intenicu*
piiTUrwd
Aped Milcc
KF IW,
ZA, Hammer/
ti*UrnT.
lOOt- AtrAtf .Vrr FoM 16, Tvito, F^xvaty

September
f—irmci
lOOV.J.
iSAP. I). 1991,
4if SuwioTf
Urdttef. *V«ir « p. 20(10. p. Al.
70
tUbiMA wjobt'..A. .Vnrr
CAJomand.* 26. SUported in <;,
t lhad. auJjo** Btk*'iot"
199V,
ir WtriA
Krrrenu *The AAchA
♦♦-•A;PF 11^and K. A Jamtt fSulb^ Trm^
fU^.y^y f'frcMgrtji

W-
!«.*>. UR.
Cnwford,
and XP, Jorur^, "CiBtrMnttin|’ the Aurttoj ffrrd, June 5. p 36 2(Mf.

&.“ fwtn, (kvAier

M-Q^^wtwwi SmMtwrt-16, 2000.
A
p.
M

16B.of StnKWal 27-j-K. HaaAinan «id UK.

Rnic*
■TheiP
f.«nj in J. Thaler. -TTic W
Owcepmal (JUham. “.MuOiwo Tliraa^
«Reboonship^
AV<id.’ Aw»<k’ withT , PWI

Afrt 4. 1999.
AcDtudcs p Cl.
arid See afao
Bthy»»»»r/ the Oe^gn of A York: 7^
AOfTf«H=rfWw*af
Cohen. “S’» U'eh for
PP "“UnJ.
Mun^r

Octrjher
Ptrfimnanifr
>0,
bI 2000. nt j Thwey. Ab^a/unaaaf
R01flBPF2(*(M;
B. Aerdu ^kAipkweea' New .*!«<« PP-
•A*

Bebjr.ar »i>J lh>^

Orffee Break: Online

-

*W<r" LAd December 2M S«BT.I.ob«T.8A

14,2000. p. JB. M-R FiugeriU. "A AtvU-
* l>»fcr.--nicW'eha( W'nfk “ AMiri* t*“ ®'*''*”/;**
* m .M (Wm. Wat Your (3iaraLicmtin I.Job SninfiCtion'

Ma, J9«5,«. V Fried

O*n BhU* Ferns, -IK..f iNJ.d»
 41, B.K. Bahe*. T.E. Briggs. J.W. Huff. J A. Wright,
20. J R, Hicbflan, ' “MW
in
(Sinn G .4. Neuman. ’Flexibk and (k»iiiprtx*ed WvHcweck
WorkD«gi^ Morwa, siedrk'.: A Mm-,Ana1yM’^ of 'l^eir Effects on W(^v.
M.. Siirilc fcd«.X
fniprt>vinf/
Related Criieria.’‘?fi‘«™^ Aogtet
CA.IhuL
30 <;o»lycar.
p]». pp. I'S?-
1999. pp.4«r,-5l.l
42. Cjftd in ?i- .Ai-tnour. •Tdtx'ouunudng Stock in
.u. fi.R. S^lanrk ,.MI.|. Pfeffir. "A . the Slow Unv? 7tf+n.Jiiue25, 2001, p. 2A.
Pra<«..^,ng-ApproMJ.coJcbAKim.k-
.amnaskDci^_. 45. -Tcleuimmuung As a Way of l.jfc," Fmimc,
S,-io.,v June W. b- pp. , January
BmiJ.G. Tb.".«s .n,l RAV. (Jnffin, 'Th< P..wvr cf 12, 199S, p. 94
XiKunin pp. M /5.
S«al 44. Cited in R.3k’..hidy and C. U'Amico, lhrF/«7<
? 2. Suf. h ir i n' e:i JK L , j.' I'h'M r» i' > and it V. (< n
Tnh,tuition in riK WbrkpLiv.’ 2920
n. (Induiiwpoli?: Hudson Inwr.rte, 1997). p. 58.
Six'ial lulbrjni*Thin Pruvvs^ing M<idel of Iil>k 4i. E,C. Biig. “Saying .Athos nnlu’ I H’tke? Dnsintn
Dcsip: A Octolier 12, pp H2-5.X/XUFrgcseib'WlakingStiy^
Re'icw 0^ ihe l.irtr.ihirtJ4:rfi/twv ''f ?T-nom<.-»Fc«l Wcicnme? nuihftir IFW, Ociotwr U,
Ocwla^f I’>1^3. pr M O. Ziksny and pp, 155-^6; (\A,1.. Danrhavji^er, "The
J, K. For J, "FA rending the Social InforrodCHin Pn Invisdhle
messing UVkfker,’ N'menihcr p. 38; and
p^p.p^j;,jve; New Link-N (o AcTiUKlei. Behaviors, “Bigiiv-st U.S. Workplace Trend Is Tele com mu

and CHAPTER 152000, p. 3.

Pereeptictii.” fJcbtH'hf ftKif/ao
1. 5<‘c. fix example. J, Pfeffor.
Dtd'Tcn /Vfl.me', December 1^90, pp. 205-46; Pfvfi/t': r6e PtrTftr of rhe (K’suifl:
(j.U. Mej’er, *St>daI In form a lion PriKCiaing and llarvatd KusinL'ss Schind Pre<fi. M.fX IluselkkS.L
Social Jackson, and ItS. Sduikr,' “Icchrutal and Strawgif
Networks: A It'S! ot’ S<H:ial InHuentv Human
2{K)3, pp. 3-16.
MechanUrris," Resource M^oagemenc Effectiveness as
33.
KwArf/?C Garfield, “Crvaling
JJfitfJrt’Rf, September Successfn) W<J4, Psrtnership?
pp. lUH-45; Detemunantsof
with
and Firm Perfornjiiwc,* .4iwr/wzy
Employees.”
34.
K. J. See,
Klein* .^r
for instance,
A.H. May/June
Conn.data D-B. 1W2.
on task p.«.cniaigement
sSrnith. :*ii<1 J.S. Februitry 1997, pp. 17 1-88. and L, Grarron, tr-
described
Sorra. •‘h mjSwtfKgj’,*
in MA t^inpion and C.L. AltClelland, “Follow-Up
Fvervunc iii AeTtcincnt? Au h'xplor.uion «f Wicbiii- rt<m>ig People iff tbe Hetrn of Cfnpi/r^re Bu^nea (London:
and
(ircup AgreerneiII in F.inploj ee PcTccplinnAof rhe Financial r«mes/Prent)ec Hdl. 2000).
F.xienai<»n of ihe Iiiierdiscipliiisrv Costs ai«J
Work
Benefits ol 2. L. Aw-Lhn. “More Cmnpanics Rely on Eniplovet
F n VI n 111
Enlarged ?i I pn
Jobs.* tJou ffi/il Fe b ni a ry
/ nfjpplifi/ PiytMugv^J^rit 1993.
JOKIVM (iifetviews,’’ Busrn ess K'^rra, No vein her 1994, pp. 22-21.
pp, 339-51.
3. Ibid,
35. JX HWimn, “VV<>rk Design? pp. 132-33.
4. kJ. Hamon and J.C. Baleslreri-Sjwrn, *An
36. See. 6 »(rampk, J R. Haclaiwn and GX Oldham.
.AJlcmadvc
W-iiH'
to IntciX’iews? Prww^r/Jvrtrr^i?/, Juoc 1985. p. 114.
Redrs^ (Re id in e, VLA. Addi-^on.U^e.shy, IMSO);
S«
J.B. Alinex, akoTW. Donghn ry, 1X8. 'rurban. and j.C. Callender,
Thfttrif^ if Orf^niz^tifitia/Behat’ifii' (1 linsdak, IX; Dn'dcn
'*Confinning First linpressiiins in lhe Ruiploymeru
Prws. 1980k pp- 231-266; R.W. (Jriffin. “Efil-ct, Intenieu: A Field Study of Inrenneu’cr
rfWork 5ehavior.’’5t*^
»
Redesign on Emplovw Pei ce|5i ions, .Aeowdes,
t/f.4/?p/ZfdFr^rAo4igv. October IDSM. pp. 659-6.5.
and Belwvtonr
5. See A-1. Htiftctnt anti W. Artbiu-Jr., “Hunter ar*l
A Lnng-Tcnn Invesngatiun,’' of.Mtffiag^rreiity'jmva/,
ITitiner <I9«4> Rensited; Inieiview Validin* for F.ntry-
June Wl, pp, 425 -35; and J.T,. CoctoTi. levd
Zwi'oAzn JtiKnuti of Applieil hyshoio'^, ,:\pnl 1994, pp. IJ44-9O:
wMr M .A. AkDanid, D.I.. VVXcwul, FL. Sebmidr. and
(Neubury Park. (LA: Sage. 1993), pp. 141-72.
S.l), Maurer, •The Validity ot Employment
3“. J.R. Ihtkinflii, •'Hie Design of Work learns." Inrerview^J A
inJAV. Coinprelu-nsave Review and Meta-
fzirsvb (ed.}, HtfAd/vOik BcJ,<fjir4ir yXiHlysis?7v;/rjw/of
(Upper
. IppliftJ Pyi fnfiujjy, Augusc 19‘J4, pp. ^9')-(d6;J-M-CoP*^!'’
Saitdk River, NJ; Preticice Hall, 19H7). pp. 12+ 27,
7

R.A. J',^ko. and D-E Guodman, "?\ jMeta-Analvsi?

IS. I Al. Been. “FJcKihle Scheiluks and Shitt Work: of
Replacing ihc '9-nj-5’ Workday?" LJAOT fin /ea' Inwrrater and Internal Conaswncy Rcliabiliry
June 2000, pp. 33-40
 A M L. Sffivn^ Intttvitwi: hwxs hnpe.'tn-ei
B.Kl3,eil Vj|i.l„y
Smith-Wttftem PiiWishing:. P)92k pp 42^.
- \A: K in PcTf.nnrt

4rhvd PT’’* ?'a<WJe River, Nj: Prmuec H»H. IWI).

C» A. Albin*, TC.. FlicvjUA, JIKI .S M. Oilarelli. CiredinM I!ei|i«t. mw.!- « PP JJ-U
•Tbf biK-n k’B' as a Soctmncirk Scleenr.n ■ 75«.,,,«j., M„,.h l-)94"p‘}rtldfn p’''""’

Fall 1‘M, pp.

^115: R.L. OipWiyt'. •‘StrutTured ;ind DnstrucniR-d
j;eJi‘cTi<in Tncen-iet^: Bcyrmd thc>b-Fji Moilel/
l^wrfuZ- 21. “U.S. .
> I? (1994), pp. awx't ReuTUits," .VMnp-Mrr .-|qp,;Ju|y p, “
Srhnckkr. O.H. Smith. S. ’laylor, and 2-. Cited in "Sliney Sh.«vs 7S% i.t L»rBeC...n™-i
J Reel Nir.'* Pt’ rso n.d 11 y a i >d < )rp»i 11 <a i ii m»: Sui,«.rt Unvrsih Pru^rann,-
A * R’sc of the
H nr 11V of sojiili I \ H y |xnhc *i<." Jnunnd uf' . Hwwexsjimc WS, pp. 25-2?: J K. Fun) .HI”
.^JM)r^»Aixr..b‘ne 19^, pp. 4<>2-7l).
r " ^,''''"’ ’ "’o.kpha
g Rf. Cbbeili. ** rh*’ VaWfiry' nJ Apnnxdc left* in
ajid \Vf,rkf,.rcc: N.w l'ersp«-riv« and .\ppro«hn," in
Perwinnef
h. .t Kosscic
Sf leciinn.** ter 19“ 3. p. 4 7 5. and S..A. I .obd, eds., !>r.'tTjiej

10. R-J. Herio^wtA aod C. Murray, 'i^c Heli (CambndgL, .MA Bbckwcli Publishers, pj». 164-.VJ
.4«yrnor« Ijfr <^€\v York 24. H. ITytics-Gracc, "To Thrive, Mot Vkrdy
y,^ l*re&s< i9‘M5: and ALJ. Rce, J.A. Earks. and -M.S. Survive.* in
Ti’achMUi, “Prediuieiig Job Performance: NOT Aluch ifxtlthtk .'iH/htm Cwffr?7 fltff (Av^rnffl/m/u, spcjnsotal by

More ihc
llun g."* Jovi'tbtf IAU^T 1994, American zV.Miciati«in «»f Reared Per*-ms.
pp 5IH-24. WajhjQMtxh
11. J, Amt. “(bn You idl .•kpplesnuce from Pickles?^* DC, Oaolxril. 1992. p. I’.
Ortuher 9, 1994, pp, hW»« OR, 25. ■Teaching Dh ersity. Business Schools Search
12- D.S. Ones. C Vj^w waraa. and HL. Schmidr, for
*XJom(r<Jicjnhc M«:ia«;\aaJ>5is of Iniegnty'lest Model Approaches" .\<cei///w, Fall 1992. p. 21.
ValidiriK; 26. (s.R. Weaver, 1 ..K. Frcvino. AJ P.L. Oochi'ao.
Findiflf^ and tniplicibuns fur Personnel SckcQOft and “Corponne Edtics PractKCs in the Mid-19'/0»: An
The Ties Ilf Job Performance." ^rt^iwZ Hiupit fCid Svidy uf ihc For, i me
August pp. 67’4-"O5; P.K. Satkett and Ethuy, bchnbiQ' 1999, pp. 2H3-94.

J.E-Wanek, "Neu’ Dev'elopmeoi^ in the l^se uf

.Measures 27. K. Dnbhs, “ I’hc U.S. IX'parmwnt<»f Labor
of Honesty. Iniegniy Corudcndouancss, Hflimina
Dvpcnddhility, TIui 70 Penn IT of Workplace Lcaniinp Occurs
IfuttwnrtIllness, and Keliahiliry’ for Persiumel Inbniwhy,’’
Srlmion."
S/iks AM«.Tgrw£W.Nnvwriber 2(XW, pp.
P^ftWM^r^ Winter 1996, pp. ‘R7-b29; and
PL. Schmidt and ! E. Hunter, “ I'he Validtry and Uabry 94-<f.
of ’8. S J. Wells, -Furfier tbe Fcraial Trainu,?. Try
Sekcdoii VI Cl hods in Person nd Psychologv." Ctatiirig
U P (brbonara. “Hire for Atuiudv, Train for SLiH,** PM a, the Water C.iulcr,' Nrtr Tuu!. .May 10, IW»S
(grruft^ H«) 1 (1997). p. 68.
29. D. St-haat. •Insist nandmrger Uni.-enil)-.’ TnoMg.
H. J.J. .A^her and J A Soamnu. “Kcalisnc Work
rjcceitiber IW, pp- lS-24.
Sample
50 PM BUM.'llnDi'umiaofBtrataTity-^-^
Fw: A Review/ Pc’rwTCTc/P.^rWfttry, Wicwr 1974. pp.
(Ch.uicii; University of rJ,icagt.Pn?x l*«X
'*9-3 J: gjxJ I f R^»herT5Oii and R.S. Kaiulok. “Work
JI. -The Cop-Oar Cnpa."
Scpteiubcrt99’,n>. *>• ’
Sample
!!'G.P. ..... ..... .. .nil K-N.
Testi: ValiJiiy. .•Vh'eise Inipaei and Applkaiu
Reaction,"
\\Wvy.l98h.p.«<l. -r w,|kodtK and
Spring i9K2. pp. I7M2. 55. See .en«.2r- -Apl"’"*
U. See, for ijutanee. A.C. Spychalski, xMA Quinimes. W. Bead. ' I he a«l
 CndRMK
"> ’I* ReHbrouwe AfiR^>•1
and RE- *<«»« *R«tiaR«^
-M^pnK K HV
Prn«» ««d
.Meta..Amly«, Reactions; A
HO-ji>.j«U.VS-UdJflef.- ->£ Field lji»rst>S[atii»ns.”
fvTQ'-*^«<-"^- Jtamal tf Apfind Pn,hdai^_

Ho*J^a-. A»«l .'■ ’‘»'- P- A«^ '

»»• -IS. 1. Zip-n. '^bUing P.rti-
m.nc Apprsiul Woiifc,
M. eked in C- H,n«H*A leant;.’
OfAPTER 16 /rjzB<;y. h>ne l'*W.
"IJo iMP J.* pp- 5(1-63.
1. See. Ex* evJinpU. t.,H.
OdW^Euer PrwxMe Schein, OtKimr^rfneii*/
UiMK-^r) or »4ir
Arrrrt <San Fnindsax Jtfso-
IjfJrTTbif

}^n^, De<t:mbtfr 12, 2<M)0,

p. Bl.
<6, A S l>Nisi anil LU -
Oi^nw<i of Bass, i985\ p.
InfofiMriofl m McflH>n aftd
the |V&>MR«nce ApT^’
Prvccss: EiitfcjK’? 6x«n dw 2. Tlib s«*i#n-iTem
FiciA’#• deufipuon iMxcd on CV,
DtCemlKr I**. pi>. T) 7 .V. 0‘RetUv
r S«^ fr* iB5On«, JA\: III, J. Chatman, and D.F
H«hi|Se and W.C Bierman, Oldwdt ‘Po»pfc and
*ChaR^n^ Cwrepni’ns and Ofgamianonal Culture: .A
Prictktfs m PeffcnA*nce ProHk CompanMXt Appro^
.^««fcad." in A. llowanL Tk to .As^*?»in» Person-
llwifSan
N. Fi.J. Fraiw^o-Kw.'-Bi^s.
Keman&iv'‘The <.>rgani2atiiin Fit.’ .
iWSt
Kneev; of Rater Tramiii^ on 45 >- f^Mdran «/
>*>. mi. pp
l.aueocy
jg. See. <1* arad Hab Errors
izkctaAce. P-K m
Snmh_ “Trjsning
Srotkorr Ranr^ nfluMJuaors." 4g7.5|6(«r^
AnM^juK
Per^nrrnance |97i^.AppraisaJ:
pp. 5O}<^)8. A J A Cbaonan and KA. jchn.
Review/
40. Ibid.:.-J«-
and J.M. ’.Asscssinc the Rebdciodiip
fcA**y'f**"^^*^**^
Uanorvidi. ^Luogintdiaa] Between InJostTV
jrrT«J««n
Senh*
41. of the
SLS. l‘>SA,
Tajior. ’?-4iV
K.JL T.R. OaracTCrisrk> atu^
AAet
FJievrs
Tracy. andof
.MX. K-M.
Rater Traimn^
Renard. J.K. un Or^nuachxial
iStdnnre.
Fnxhcwnechc
Harrison, wf R-acr
Error Trainirtf
in Culture: How Orffermt Can
R>U‘r
and Ac«raQ7
Rattes.*'/MnM/«^*J/p£nf
S.J. (TarroH. *D«c \< Be:’ .dfU^rnty
MJ tf

l.A wThAgii October 1979.

Pnjixss tt Perbawance eveb-uf-
pp. June 1994. pp.
Prcceteing
.Appraisal: Theon- and 522-.'5. For a reviev
Sodal Farilitttk® w
A<.Xi*^l:jp<Hs>«ni of culcural diruensians. see
Thcon Penpevhxxs.*
ProccthinlJw&ee/.diArwwrrv NAl. .A:thkanan. L.E.
m ftvrffA^. Broadfow. and $. FalAus,
So»cnihrf
Squcinber WT.pfi-
|9Q?. and
pp. DJ. “Quesdonnaire ATeasorea
Uoehf.
49^525. cf
*Vixk<r$cindmg
4*. J TD.
S. Lobluu ’“Its Shape- Orgamzadoiul Culturv.” in
Frfline*^?f‘KrfsTriHv
45. Sehvihank. Time n
Vp
Erahace
Traiiunpfor Perfonoantt
Yoor \Uirk,
The N.M. Adtkana:>y. CELM.
Rc*ic*s.’
ami
Impact of IIid?Srrrrr^fvnu/.
All ImukvdIninin^ .Arc
un die \A*ildeTom, and Xi.E
Groaning*
October
Rcrall
46. of 3. Jirai/.
I***!,
Perfixiiunce
Smn
RJ. p. Bl.
bHie. •'\'hy Petetxw (nkl,
Nmvmbtr
la^xmabon.*
4. '. .Much
PetfnniMace 19,i/ 1996,
th» p.
sectfcxi
.A|^hal Al.
Aisusi ix ^Thousand Oab,
based on H.K Mej^. “A
'jMinui /f.lpfJifJ

1^^,
Svarems
OrffnrMM^i Cuifan •mJ Qmutc

CA
SohiM
pp.
Fad.’
52W4. to/ lAamwM.
the PCT<wn«nce June Sa^20tX)Xpp.Bl-*5.
.Apfvai^al A
TMW
Feedbag
IT2, pp.<kt«ajpww£wr«ef».
)?-4a Fni^ • 5. A’. AMcner. '‘Forms of A
.Udrm aloe Sysrenn; A Focus on .J
4 5 .'lobroanjr.,
Febroan mi. pp. andj.
6g-76. Organuatkinal Efteedvecess
♦4.
.MittimaA.
B. fratm. n* Raid .4Fr«d and Colttml Chan^aud
‘iMcrpcrvmal
(Nev Yurb S*iking. Rebnom 1995).as a Mainrenance.’ .divdavT
Cnecn
jk S6. kr d* E^cta of ^JfeK/gnwevr Rrnr?*.
bterrtcvi on IMbrnnt and October
Satisbetian: A
 ^*Krtes
April 1997. Rev. D (Scartie, 21. Cuud in J. .Milliinan cr e,! •«. •
R Kil’Hann, MJ. Savr-vr*. and R. Serpa. ed*, S^mlhwesf AirlineCjAnrwumty m
Cippdrwi* CufrviY fSan I’MIMS^VU: -2. K,l Mhr.
4* M ,C,
n,ss |9x^); hi^j:eni)d, “Can C.'hiin^t; in
•^t«rtisau(Htar< uJ’ur-j Really BL-Manured? 23. ikx C Lindsav,''Parado«e,i<vf\— '
c Kmwinv. “Creating a New Omiwny Culture," the Ptrad,u
^orwHe*, JX. Wall
u«n t-'« Kuitet aniJJ.L. >nd I Ccx,Jr., C.ltrjr,/Di..>riry i., <hs.,„r.;2^ it

Hesken. B„, ,s„ p„„„„

Calrtt!'^ (New Tori:: Free
Press,
[ ^nd J..M. Bc^'er, CHAPTER 17
7X’«
tL^ppf'' Sjtkik’ Rh er, NJ; 1. The.j were devyoped by P.B. VbilV.M-«g,„
l., ,ntj.«Han, l-w.’). [.p- 4V'-42>. iSan Francisco: lossey-Bass I9fi9k *
J3 B VK't’»''ah'IJ B. C^ullen. ''TheOrgaui?aaonil
2. K. Lewin. -Gmup Qeeiaca^ and Social
Bjisw.
Change,” m
Ftlhkul Work C,Bujat«'.’'.!t/w«^4Tnvri‘«7Pj«?
^/e7^. A-laali I^SX, pp. lOl 25; LK. TreviIKI. ’‘A G. E. Swan^. T. Al Ncwcoinc. aod E. I. Hartle
Cidtunnktipeccivc: oi> Chjnpng and Dc^elApm^ (eds.J,
Rcadnigs til Soeiffi Pryvbob^, 2nd ed. (New York Holt
Oojanjzahnnjl
J4. D P Ashiflosand Erhics." 1>. in W’A. Pasmore
Dndinn. arxl R.W.«c
'‘Spirinmlily
^Voolfiian <cd> ). Ri fCturh in Oi-^antz^thvjii CA«rfii^e* and 1952), pp. 459 -3.
Work: A
vxit. (Greenwich- CT: JAI
C«K<.'pnja I i ra ri» HI a i if I Me asu re," PrwMi, 1990); and f^iai fif
J. T. PvUTS, Ti'rivffjx (New York: Alfred A.
RR Sijn* "The Challenge nf Ethical Behavior in
Manaf^eniew. Knopf, IQF?). p. T
Orgapizaiio^^-"June 2001). p. 1 ^9. £r^/o\ July 1992, pp.
'^yMrMiofBiisitfffs
1 E.H. Hall. .S^rjftTw;«, Axiteisjs, and
15. IhissCTiion is based on l.A MitroH atuiE.A. Cbfidiwi,
Denton, 46 cd. (Upper SyJJk River, NJ: Prenucc Hall,
.4 ^prifujilAndti fif Ctn-pfirafc .*1 Htird Lindi ar I987>.p, 29.
Splitttai/ry, Rc/igfon, and I m M? ^ipri:/i/AY (San
5. See. fi»i exampL, C- Argyris and D.A. Schrien,
Fnnekto, Jfissey Bass. 1999): J. .Miliijnun. J.
Or^mizatiiina/ LturnnffH (Reading. MA Aikiis<ns Wedey,
Ferguson,
D. Trirkett, and B. Cundemi, ‘Spiiitand Coimnunity 1996); L. Baird, F. Holland, and S. Deacon,
at "Imbeddu^
Stiiiihwesi: Airlines: An Investigation ot a Spiritual More Learning inln (he Perlon natjn Fa'i KfUHiyj
Values- cn .MLe
Basul c/'OzgffW/Zrff/pW C£w?gT a DifeMiUcc,' Orgsitii/fTiwaf Pyrj-jwny, Spruig 1999, pp.
lltfn^grwr/^r 12. no. J (1999), pp, 221 J J; E.II. 19-32: snd R.S. SncH, "Mor al Foundaticns of6e
Burack, teaming
Spirihjahiy in ihc Workplace/ of Qrftflni^ational Organi<alion.' ilumirn Udarifift^. Mrrrb 2001, pjK H9-42.
<lNifxr 12, no. 5 (1999). pp. 2B0-9h and 6. For a sampling of vTirions (IIJ dc6nidon$.
£\A^^er-Man'h and J. Conley, “The FuMPth Wave! sccj.t
The Port ns ami P.J. Uol>cftsou, "(Irganiyaciun-al
SfKnmally-Based Frnn.’\7e;<n?i?/ of (h^fitzaticnai Cban^ Devriopmenn
12. no. y (19W), pp. 292-.IG2.
Tlicuiv, Practice, and Robcarch," in M.D. Dunnetie
I<i. Cited in E Waghkr-Marsh and J. Conlev. ‘'The I’
md
ounb
T.,M. I’lough (uds.J, lla-iJlpiit: i>} InJusnial{7
Wavt." p. 29S,
Pry,M-.g}, 2 t»d cd.. w>l. 5 O’jl" -Mw: Cons'iliiog

T. M. Con I in. “Religion in the Workplace: The P^VchokgiMs Prf^s, Iyy2\ pp. X’l-55; N. NiAcl««i
Growing led.). Oirtinfan

Hsenrt of Spirituality in Corporate America/ I.MjIdc, .HA; Bhcivell. IV-S), pP- 359-61; and
iZwZwejy (x^Fonas
kfi Novemher 1, IW, pp. 151-58. and H. J-hnwin. "OrKanizaiinnal ‘^^'''^'7''’“’.“ „
Oedin Ihiri..p. 155.
C. P. Keck and J.E MiHiman, -Thoujlil Seprember 2000. pp. J76-79.
Self- 7 Set, uv instarue. Pas.n>T<
^^,ip, Spiritual Fiiinilmeni in •‘I’aTOVipari.m. In.lKidual Dcvelo!"”*'*'; ,
Ssnizarional 1 ^MirwZ '>j b^anaeenat Psyebofo^ 9,
*»-«09H),p.Q. 7 X . .V e/iWrffWfe«ro/Junc 1992, pp. •
*7^ and AUcageincni/
Work),
E IAy«*ob^9, no. 6 (1994). p. 5. 5rh cd. tviinncapol.: , 1993);
 EAcmotes
Jurtc 5. I<>95.pp. 28-31; T.A. Siewarr. -JM Ptghta
V. J.E, Edwards and M,D. Thomas. ’ n«
Fp»wwr, Fehrunry 5, PW. pp- ‘>4- 99; B. O* Reilly.
Grganinbonel
Secrets of Americas Miisl AJmiredOirporahoBn.^^
Sliney PTOCCM: f k’neral Step* and PratTital
OrfisMemtinne,” in 1’ Rosenfeld J. E. Ettwards, and Ideas. New Products." March .1. !<>97. pp.
M.D. 60-/»4; B. Fihpex^b “Innovation Drivers/
7lwMiias <edj;.l. f.^5»w24*r/iW»tf/ Ar/r*.(>r: HM7. p. 56, M. (^onhn, “ Ibu Much Doodle?" ForAft,
PffTiTww, 4fer/*o^Z’, tf«t/.i/vAr-»/*'"v(Nr^vhxiTy Ckiobcr ]*>, I99H, pp. 54 55; and D. Weimer, “-iM’. *
ParL Ilic Heat b oa die Boss,” Bfwfnef.? MreF. March IJ,
Sage. 1991), pp- 3-2t*. 1999
pp. 82-84.
10, E-H. SchcT’h Pra£t^.t( Cwfaitfrtwn Revi<^vd: fJje

He/pftfi ReMonship (Reading. ALA Arldi^ HI-Wesley, W9>,

20. E Oeminnjxnir, "Oi^anizaiior.al Innovation! A
Meta-
P AJI;Jlysis of Effects of 1 k’ivrmirane. and .MoiJeratr>«/
]|. Ibid.
Aivcitwv SciKCuilKTT 19Ql,
12 W. Dyer, Tonr mJ rt pp,^55_9^
(Reading, MA: Acldisnn-Wwiley, 1994).
15. N, A’LKt*nhus and J. Wallace, Ot’ganiznfmMl CbiDi^: 21. See J. “Sliiiring the Wealth,’
TfchmifuesApph^ofsnvs! (Clenview, II.; Scoci, Forcsnian, M?r<h 19. 2001, pp. EB.16-40; and D.TapKOtt D.
TicoH,

o
Ibid. , pp. 11 *>-16; B. Fryer. “Get Sman,” /NC.

M
M
t
1971). pp. 99-100,
and .A. Lowy
Teeb^otf^ brutal Cytpiml: Ifnrae’AWff rfre f^rpr yfBvfnar
J W 5. p. 65; andb. Zidinsb. “Have Y«>i
14. R.R. Bhike, J.S. Motihin, and R.I.. Sloma, ’’The K-J'/v
Shared {Boston: Harvard business Scliool Press,
Bright Idea 'Ibday*^" Traminv^ July 2000, p.
Urion-Aknagemenc tnicrgruup Labonitory; Strategy a
2000).
65. “Cet Sniar:, 6?.
24. B. E'ryer,

u
e
tor 2 2. B. Rohe ns. “ P> ck Ei ii|4(»yec»’ Brains
Resolving Inceivroup Jumiiaiuf Applied 25. B. Roberts,
Fehniary 200IK p.‘‘Pick
11.^.Etnpbyccs’ Brains,"p. 117; and
Bebiiviiifa/ SV/«73ce 1 (1965), pp. 25-57, n.W. De Long and 1.. Fahey, “Diagnosing Cullurul
Barriers 10 Knowledge ManagcmciK/Llwdrffl^' ff
15. Adapted trom K.S. Schnier, ’Definidon and M/magemerft Exeewiva, November2000. pp. 113-27,
GcttKcpmalizador of Stress in Or^aiuzinonj».’ Ot-
gffnfsJimfinJ
26. J. Gor-don, '’Intellectual Capil^I and Yau,” Truittiug,
April I9J^O, p- 189. Sepcenaber 1999, p. 53.
Behiirtnv itn^i Ifmnaii Per^/rrndtriv,
D, Ziclinksi, “Have ^bu Glared a Brighi Idea Ibday?^
J 6. *M.A. Vfircspej, ‘ Stressed Gin." bufumy Hhe>, iip. 65-6/-
February 21, 2000, pp, i 1-54.
37- Cixd March 2000, p. 219
18 See, for example, S,.M. Je,x, Stn;.fsand Jnh Peifrn^nance.'.
T^rwy, Afrr/rrr^, and JfffpliMtiont for iMjnageriiii fVyeftee
flBousand Oaks. CA: .Sage, 1998).
19, Discussions cf the 5M Co. in this srrlion arc based
on T. Stevens, "'lool Kit for Innovators,” Indt^ttry
 Glindex
I^efminons nrc shown in nuiubei’s in bold indicate ndditional display n,„en.l.

4lMriTv. Hnd lejm rmnposirion, 106

erppl<Ae«fs 2
'TianAfcnwnt. 160
flttiluik’ybehavior fclatiohihip,
inconfiicl pnuieis. 169, 176 22-23
(xtAch) defined. 19 e ’.-..A
Achiewmcur-ur'fJUrd leader, IW dissonance reducaoh, 21-22
Advanced fifrrarion Sysrems, Inc., 197 m d I vidua I lx Haviot, 19 -2 3, 2s
job sutisbnion. 19-?i
ALW Life, ’ and ^iyqenutic siudy of UB. 2
r9,G (dct(3t theory, 45-47
hutn emotions and
Amactivxne.x.^ io expen^ncy
wfwiiy J6 theory, 52
Attributirji i rh eory, 23-25
Aflnlifin^jn ’S’rr Xeed for affiiiadon
.Auslrahan‘^irbnes, 101
,1^ ofo'^riirATinn and change, 242
Aorhoiitv
Ag^re^sinn ifl organiznnonal a
ciilhire, 241 rhe rt^ti inhvrxnt j>rr”™ jedwr

.<fl7v< ;iblen«s. 51 tfrtr/ rxyjM tht order: to Ir

Akna, 19. 1 ft 1.223 Autonomy In jnh vhunwKmnc model, 206,207
All-diannel network toramujiicauon, 119 Avaihljility* hcurisric
Allaire. Paul- 236 Tht ttadfney frr people fo le r^wryiK/gJWflCf« Mjfinv
.iiS I/, (television prcgrain), S7
Ma«
Balance aiaiiabk re conflicts,
worlc/litie
rhai is i'ettddy tik«. 76
Amaliih. T, Al., 72
Amazon.com, 9, 201.202 iVvoidance in conflict process, 16V, 176
10-11
jVmbiguirv Barclay'^, 11
deosion making, 77 Behavior
grapevitie volnmunjcation, 120 heha^'ioral approach to leadership, k»l
.Aujcrica Online (AC L). 142 B, 154
Anivnca VVesr Airlines, 209 in contlicf protc'i'i, 168-69
.iTwriran Alanagcmerr Associabon, 65, 203, detision-iuakiiig style. “7-78
213 tnod^ficitian nf, 58, 59, 60
Aincricaji Safen" Razor, 66 iu performance appmisal. 225
Amerk-an S rec I fie Wire, 66 S’fe abo OrganixsUitmal behavior (OB)
AnaUiJcal dwiiion-making style, 77-78 Behavior, gro'ip, 8?-99
Audio ring, dea^i on-making hisses. 174 basic group Loncepts, 85-94
Andersen Corp.. 63
classification ul, 85
Anger, as universal emotion. 38
eonrribuUHg disciplines toswdy oh >>
Anthropole^
Tbt
»(nzities,
of ^tfd^ies /o kijryj aifnat bumea bdtt^ and Thdr defined, 84
AOL (.Anienca Online), J42 group decision making, 94-90
^PPk Computer. 3 1, 65. JOI, m iiisplicarions for manage98-99
i>P^'»sal. perinnnancr, S(e Pcrfr-nnan( c Behavior, irdhidupl, 14-29
Aptirjital flttihidcs, 19-23 ..r
^Strong. C. .Michael. 64 ^‘ontribL.hng dj«.'iplinw
Sohimcin E., 8Q-yo in201-3
7^’MajyKiyj42.235 iRiplications for
i:vDter% managers. -
-rtrtiT^ rMr lint tvtcutivts. aiidAjr nained
leamiog. 26-27, 29
fvafaaft a/ gu «fe perLcpuorb
values. 14-19
Beh.«or4Uy4nd.ortJ^r‘^“
*ervrB/ days emviffr /Ksf .wwuijZe nal proHcmi r
I: QUU cn tbe h/>. 2/7-/1

•miLihun ui.rkj^a<t diver sin, H Bell, AIt»ndcf Graham,. -

urrubniy an.l juriqMum. ’5
 (i^iece Anitle). %
CMntger
MAHrvwea.66 Cfl»mljen,Jvbn. 142
fien ft JenyV Homrwsde, <%ainpcm S|tti k Plu^
245,244 < Ihanpe
tkn9(W, Riek. 64 rhnfi^s ^iffirr"/,

Ku* (ih ange. n rg»ni /at 111 njl. 2 4^^-65

decHinn maVing, 171-74 c<>n*em|M’rarj’ ISKUC* tn, 26tMW
in NiieiMeu’s. 216 f me’ tor. :4H-$n
DiK Model iTnplLati«>r^tbr manti y^er*, 264-65
7*1’ /r.* hen 4w»ruifin/ widrt/wie? nunafCfnenr <>t pUnncd, 25{>-51
lYrrivt, agrgeati/etfeff. enu\rroi»ai
iTMnagtmer? thixnigh
htirt. ii^emtev> If fagmrwe- > 1 itrganiutionsldev
KlaLv. Knhun K. IP. IM ^OD}. 257-6(1
Klrn'kagr and wnAici, 165, 1^ reftrUnoc tn, 2<*-56
B.MC Software, 60 xttinukatirm of, 'MIO
B.VIW 104,217 views of. 25 1-^?
(jwtH’L-gents
Buflrd rqire^^entativt* /'(TTflw vn*) 4/^ Atfw/yff/ ^id a^tsmr tic rftpotuliififfifrf
.4 frrfn f^freprettmtivf p^itia^rntK m PK U »rrt^«gi«i; thurt^i' 25/
Awn/fl/ (<rrT*wn -mf/ Tvpmm/ tbt iHUrvTs
fowp/3/iV
Channek in <.‘om mum cation process. 114-15, UQ,
127
tht ffnn > r*T/4j}r/K 6 ?
Charisrmne leadership
Body language, 1I7>1K
/R^rm ft)lio‘aer\ ni ^eflfuwd oMn* svn frr t*r
Boeing. 101. 105, 254
gwh? cjfargatfi'^tiimt cspohie ofhsnng a pnfut^
Boomers, as cohort. i*'Orkvalues ot )6-l? rfiw/ft7rj<>rdfrwrT rflrcr /4/, 144
Bdulganifrs J. D.. 7B Childress Buick. 61
B<Mindarsies< organizadnn Churchill, Winsn*11, 111, 141
An (trp^MKJtitw iiMf u'fh tn difniiMft' ihg tkiun fif(9fn- Cigna Corp., 66
mutfd. ht'.r Urn frit>y yfuggti uj^rttrfti, ftfui repifitt
Cijwinnan .Mtheron, 66
tffputmfntftcith gmpntitrtrti ttaMf. 196 ?I
CiKP Secerns. 142, l»9. 201,213, 264
Bounded ranonal]i>'
Cm K ns hip. orgamrannnal. StfOrgaiiizatinnal
A tip^inh whtTthy wdfwV/»*6 tvn^TTUrt einocnihq)
Clanci’. Tom. 199
i4»nphjird ftmdris tbin exfiyia the ctycnret/ /^jww frost (Jienr relationship escablUhment and iob
prn^ksti ^rrb'tat iapfnriiis^ •jJi thrit ,ompk,vtfy, 7}-74
ennchincnt 211
Bo^^emun, Bill, 239 (loaches, team leadrpi :is, 143
Biiv St'iHit^* 131 Coalitions, 155-56
Brainstoming Coercive poucr
>4fr fdciT-grm'fiiftjtgprjiW j/iov/lrf//'. tf,fy Prtj^rr that is /‘Hfrd w frtfr, 752-3.3
oifi/ ffU oherffaln e.t ii-hitf aurf'bMfiZ artv O7Z»<7X?* of Cognilion and uinflict process. 168
Ckignhive diavunonve, 21-22
i?7
tbnn aiteniatixty,
Colicsncness
Bran^Hi. Richard, 235 7ir degrrr tn ^4ticb fstwhers ef a gfvsp art attrihitd» n/ti

Brnadcast.cnm. 205 otberand orr tsorivottd to fttrv m fit gmap, 91

Bitftaumcv Crihon
A /rrwnrrv ^/^Wy r»w^ni<* opetatinff z/Kt*
<4 vf nrdniduais Tr*o (^nyrnwR *;zmhfrr.

;pn Wzctf/wn. tvi v fr^triiztd mhi rtttj rr^nia- CoHahoradon in ctmtlki process, 168, 176
rwtis, wkt ibaf art gnjaprd rijfe ftw/iitw/diejMrWk'wr, (>dlcctiVISIT!, and cultural assessment, 18, 19
Cocunaiid gn»up, H5
nstrolir.L'd autburny, «erwia' i/WN3 u/Vewrro/, aud dro-
(-ommon purpise, team creation process, 109
JMfl jf/rtii’ju'i tbf i'b/irn nf gMstftand, ! 86 (.ommuni csQon
r*r rwR^rrw / atid ttsderftanding of mtttaistf, ti2^2^
Cdm'uatcrs uUnik. 251-52 barriers tu e/Rctive, 122-24
CamplKll, Laura. 85-B6, as conflict source. 164, 166-^7
Case. Sttvr. 142 co.!..»-culcural, 1 24-26
CxuOjrp., 190. 200 direction ol. 115-16
CatrfpiOar (xepunDon. 10, tthiix in. 126
192 hwetionsof, 114
Cas*inagti, (;. E, 162 impbeation* for managers, 126-27
Center for the Smdy i/ Work 'leaios, mreqjerwinaJ, Ilf*-IH
lOl process of, 114-15
Cencraiiratkni nnHtanec tn change. 255
'F^f drgrff r» irbicb dgeinou it tontmtrattd af a strr* n: duel ton. 262
ssgk pu/trr in fit org^utiavfit 184
lechrwdogy and work/li£e caiAicn, IG S
Aircrufi, IBO
 rt.m^vr'*****^ UJ ’2/ ****
fcfnnii nrfworK I iM
< >ia(rvg (•»«<.
<,rfpn»i*iH»t''*P'''“'^
/Ar rr^' ^z***'* ** tUtJ t frwvrr zAaff mutt m ihf
trj iHfrrfnt r fubfifi ef U4

127 2* <«m, ‘*‘'*^1 iLw.j^^

j»*l rrwM. r4<, V4H <r«e«
p***'
'you
iflttinAu |»r»H-i^K t/ai, 1/6
(jMflfW-HH"’
^^j)rh*in i4 rin'i tive (vti(N*i Hll*
IO6*d <^aiivcp^rfcnrMl,7j 7j
^•r*«i»c-thinLm|^WU, 72
piup. *>i vj*ea(iviry •
<>inipn>fiH«t* >n uMifiui pnK%<*,
16M, 176
' nlicl widen,, „ pXmance
^'*^*‘*^*^1*^^*^**'^*' 121-2^
OmivptUfil ilt'i j'»inn-nbiMnj< *yle,
77w7H OrA%>6inr(itjna] teams
(xiA^hd
/< en i.'bu h >911 fgan r' pay^jjw^ nff>ft

M,i. ia2,;«,J56
th tfhf tt If hf tojftf f9nn if tMmf> that trtU rrnt^
ti» fiutfnttm^ H ift /tft^tMg hi/ or hrt fpfo/s or /itfthrr- (>rtAs-training, 209
rujj A/’ Of bti hi/nv/ti, Cuban, Mark. 20S
|wrrw(Ta<y iikl. JK/i Cultures, natH»nal, and
cruu^colhiral mccs
vmi«iif4^'« wd. 44141
assessment frsmewnri, liJ
fun(111'list vs. dyshiTHruinal, 165 J7 I, ^60 oimmumotion, 124-26
hwan rtlan'V),* J 64, in mnHict process M9
implH AI K)i b lor m 4 rugers decisidn msbng, effect i*ti, HI
,176 emrttions 59
irttcrJdNHii’l View, 164, 16$ gkvbaliution. Q. 10.244.250
ilianugrri^. f"6 grinjp cirnipusitHm, 92-9) y •b
negiitjaivOT jrd. 171-76 moth'ation ih«onvs B-$4
in negodaDon. 174
tcanbiindiiin pncvM. HIV’IO
OB c<mcrj»b. h-9
team
hHiavi.ir,a« inanagcrx
I6K-69 r>f. 143 W urganpJinnnal cultore, 246
imUthmal
vigiiKhtri and viewitcnonaliAatiun,
4i/. ]64-<65 I6S perfonruncP appraisal. 22H-29
ivaxra
cHrtamw.. 169-71 )Jvn»ui»»lir\; 33-54
Awr
P'ltemialwgn'opposiniin,
f^torttia/ o/ifvsitioir er
Ui6-67
m/orNp^t/hilirr; •■vguh values. 17-lK
Cunfi^miMy, Q5, 160
fioo taJ fffrtviufiz^tMt: Mor tor; on/f ot</r»w0. Srrrfim Organza tonal culture
V. iirisvierwuHJMws,,
MA-7/ Cwnnm Research Inc., 104
11 Cuscniiu'i dtpartcncnelwaoyn,
OmMHkratum Cn^ortien an J qua I tn'
fhr ftrrgf /» vbtfh a kt/iirf' i/ ifhrfy fo h/nr job rfl/rtufu- tnnf«gen*nt ’
Cybcrlcdfing, 202
ehorofirrirtif h nr*prt’? for
DauulvTCh/yskc. I HI, 161
dziwwj' itif/u itnii rrgitnf hr jwAvn/w/r/ /«/wg;» Occcntrabrtooai. 184
H? PedAXH? rnabJig
^**Wenn« .Wdtiwf f*«r«r/w« **“*<7^4
•«T#moon theory; 24 b.»«s. and nciPPaWW'l75-<^
H$J4« >»f rifectnr fewm. 10f, tOO-^O constpaiite
work o>hort« aiui valiKs>
^»dlL?‘'‘ri"’*'‘’"™‘^'''’'”' i 16-17 e-»orld behavior. iOM
MVWfeB
»“»» nu«kl. I n 17 ttdiwl behaVHtr. U«
****** ‘»«u.B,h-my viuitfOe. U«-«f latHAcini nwdeJ
20
indmdtiAl behawor. impliciliow Snr, 20l->
Onxsirffi making <nwZ.? k*d<r»hip, 2<W-5
Srr (rnxcp deciainn ma king; individual TTMuivatioT,
detrsintl politics and networking 2(K
making rclfltonship re<tettniii<»», 2V5-6
I)«.idinp, in soinniunicantin process. 114-M H4st4:m Airhrtc«.9
pell Cnmimier. 198 Easensm Kodak, 6S, 8l, 186
Delphi Aiitf>nK>iivc Syswms. KMtiin’<\cr''4uip, KM). 103
I>c pa rmcntaL zattor) Pjton Corp., 66, 100
tvo! h'v -Thrh jaht fyoup^did 1-^*2
dlay, 20L 202.204
DepemU’niy and (a>wcr, 15*4’55 EunKjmic change, 24V.
Delttirence-bascd mrsr 254
7>Bff ^rW*tw tiir nj'rfpristfi if fhf rrurt ii wfoffd, 146 Edison.'rhinnas. 42
DeveJopiient, nrgjnizatinnal. Sez OrpiAixationfll Ed IK a I it m and resistance to
ikvelopment |<)D) change. 256
Deviant W4]rkpl.4ce ln.'havhir^, 41 Effect, law of. 26
Diary keeping and perfontuitce appraisals* 225 Efficacy, team crcaiion pf«c«s, 109
Dillinger, Jnhr, 152 E’ffun, expectant' tJiei>ry, >2
Directive deci«win-milring style. 77-78 El. Sr< Ei notional in(clligence{E.I)
Directive leader, 1.17 Einstein, Allwri. 72
QUguat, .IS oniversal Eisner, Michael, 65
Electronic meeting
emejcon, 38 Ekctninic’Tiiail communKftion, 121-
Wair Disney Co., 65. 216.234 .4 JMsiM’Wehn]^ tuhnitfjif thut alltrat partuipana
22
Wall Disney Imagmeen ng, Zft C9iwftail snti zW/ en tOTw
rtJff^srPTf. 5'”-5'^
60
Wale Dimcy World, FJements of org;,^ni4AtTi*in, ^micturai, 17H-X5
2.14 abnul, 1 7S^-79
wnualizaiinn ind dccentralizidon, lfi4
Disneyland. 234,236
Displayed emotiuns chain of command,
Organiztrtianaiif iv^ttirfd a/) d appnptiare nw/ww, 37
dcpsrnnencalixarion, 161-82
fbrmalizat]un> 164—S5
DissTHuIIcc reduction and attitude. 21-22 S{)an of control, 194
Distinctiveness of behavior and anrihution ttxirk specialization, 179-81
theory, 24 Rmennn Fkctnc^ 111
Distributive bargaining Emery AJr Frcjghl, 58, 60
jVrgeVMAmi thaf sfvks dh^ult up a ^ed a^rfouni Emotional inte Hi pence (El)
rwioTCi-; fl fl?wrje«, 277 -73 /<» eTWor/wwif .rktJb. i:fipahriiltrs. fWB-

Divenity prrp//rte.F mflume if pirsen's Miry f<f JVOW W

isith envirvvi'mcnfai deiwntisffmi pfWVnr,
of group manbers, 92 39 40
paradox of, 24647 EnioauiwI latwir
training, 219
expr«j7<zF7 A/ tiarrfii rw»/»ftf 4unt»g
worktijrce. 7-8
Stt aliti (iender btues
iuzer^frjonfl/ OwfljWiTww, 47
Dfvhion of labor, 179 Ejnotional nabilrty, 31
Emotions, 16-41
Dole, Boh, 154
/jjfrttfr directed at /wwwe flr 36-37
DotninoV Prz.?;*, 9
cotnmunication. 114, 124,129
Dor.own strxdc vol lapse, 202-3 culcurc and, 19
Dcjanw’ard communicaihxi. 115 fcclingii arwitnist. 148
Driving force, in alm-waters sicule, 252 feh vs, displayed, \1
Doe proceiis in performance appraisal, 226 gender, 39
DuJek R E.. 125 I luphcationa tor managers, 41
Dyxfonctional tonflict 165.171, OB applications. 39-41
six universal, 18
260 Empathy, in emotional inleD^aoe. 39
Emplove*’ deviancu
E-huaineM fifr<yr vitn&rk xemr gad tigr
thrform thf arfi^n'ezutiw, hs 4i

Tkr/a2Z breadth nf aamtitt Mudtd in a stutet^l Emptfjyee inv<»l vein ent

intfrnei-biaitd emtrprisei 2<)0
4 psrtidpatK't praerxr j^r wrr r^r rftonr sf
E-cottimcrce ffBpiayref add if dertg^^fd fa fwmragf fittrnutdivUh

'Ar saks tide <d gtem»u ba^tnea. 200 mOMcwr M amnnutw jr 6l-$2
EtnaiI communicantVI. 121-22
Fr-organiaacon (e-org)
AppiKattMt of/4>usiaeB nneeatt« eU omntattratu,
2mK20f

F^^urld, rirgsnizAOonal behavior m, 200-21:^

ahteft. 2«l>-20|
uwnniunU'atioa. 204
daiuon making, 203-4
 ^T*« pmker ®*«eK
^-nenhip |Wi»n. <^:S<>P*X «3. 6*
i «pcruse

P'"'''”'"‘;r;r’"‘'" ’■ m erwrnve nKKiel. 72

f-5)J4.,«ion..rfb=h,vi„. ,

Fxtrovxnion. 31 ’ -» «<
ilwonMofeil, '
«J □rg»n.zation WnK-,urr, ler W
'. v •
*.„i.«,an.lJ';-4l
.k
-fliinvilK^'n. 50 52 Feur. flsunivctMl emothM,. jg
knafrypOl Kyot irnknown em| redsunr^ hichwK 254
p vdera 1 Exp r CKS. $fC |.' p,ip ’* /r,
,iarcicrp4hf>n vs. mvNv'tmcTir. 62 •y*
jHucx’*>rcaigin«ring, 1^8 99 IS* .
progranto, 60-61 m co«»,nuttwtx«|»r«e*,n4-b i27->a
«'k
<Iccti<*H 225—1^. 235 F* cbAiM'UriSTic model, 206, 207
j
jpirKiuIiry, 24' ioh enrifhmenr. 2ll -a'
“cemjiKa^ints* workphce. 10 managemwii f>y ohjeCThxs (MBQj, >7
I tifOQ' -V and Theory 45 36O-desn;c cvahiiirtoM, 223
roknnee and nicanirjtional $pirituaNTy> l•*elT eniodons
/In
245
tiirnfwef of, 2
Firtlkr bred F.., 134, 135-37
RinpWTineni
i'iedIcr leadership model
rZrt;j*)rt'»w2w,« (AJITWW/ tzwim, 7, S^,
zl /2»euF> that prapf^^et tbas e^atve <
245
pre/rr MtfT.i Arrttrif 4 ^Adrr^ ji)^ ffpwrwf^
Encuding. in communication procc«» 114 15
EncnunccrfCdgCr soaalizaQon, 236. 23? «i»
inpfldi'goal rheon; I3S
Envifonmrnr iffAun/ziwfc; and the drgrre Ui ttlrieh tAe jrUMliai |CRr
eontnJ and htfttn*Wf ti) the if odor. n^-i7
unortdinty in. and orgajiizaiJiHial sXruccurc, 193
FicldcnJ.S.JZS
Fijuiiy ami ^natus, 93-94
Ulf firing
£qujh* ihcury
A Sfftder'r n/aruptdattaii af mfartnaiiM M lA/z 4 Ar *m
fad^fdttf/ir etmpt/re theiTrnp»Zi* nuzxmve.^' UTp^
fir wro’f’; 123
nwre faz»rrnhfy hy
4^cf^rr and th tn rrspwiinj ai K c/ttwpwfr ar^-
intffuim^. 5h-S2, 93-94
Firestone Tire, 66
Fne Ln»rarKr, 213 FkxjldliQ
hacaladoQ of tnnir nitmen: tear*! crfnpo^non. W8
JB wtnw/rd fa /t previw 9fntt nt woiVIde confikts, 11.212
fftif tnfyrfrninwiy 76 77. 171 Flexrime
uCiPi. .S’rr Fjnplovee stork ownership plans /er ytexrhk varhmg Aiw." 212
(ESOPs)
2nj Florida Power & Light. 191
^kxJ S/riMZi^
dJemiiias (fr^iiiiarwmti »j<w/v7y are re^irtd t9 Ford, T fairy, 179
dtftnr rif^i urtme c^ndtut, U~12
Ford, Tlenry, II» 239 „ IM
|^sues
Ford Motor Co.. 8, 10, 194, 105, 110,121, b9, l«.
cohon donuiunt woric values, 17 199. 239.255,256
of iducal organitadonaJ nilture, 242-43
r onnul ernups, 85 ^„-nkiacn. 119
making, ifidivitkil. H ’
Fwinal .mall-group nefwoii trtfii«-n* »
^■^^niMhon,20J-3
Uhavior, 11-12 K<»rmal rrjimng, 220
Foni la h «ti W1 . t -A, ann«»*« *"
drvcTMty, danijzfd.

Aorfw 5/W, lOI

7^ F«riw«r JiiOO.
FoK-fJevision.^*
'««kjinr to AT m 4 (trtam vajdafatAnt FfamiM ncgoMlions.
di^Bon-
rxpf^^rietn thni the Oti udiAr/U-
•»««»< and uti the ^araftn etaev tf
Frewh.JohoR-P.Jf''*^'
f2-H. 6^-66 FnendfiWp
FritoLay. 66
 OMex
behavior of <S« Behavior,
ptfllew <r«5CBliraart. 240-41 group)
FIUUIIOMI cimtiicc. J ^7 ei»alitwop'’'*ef’ 155-56
h «u-uwidl Jrpurtj nenW 1« ration. WI ndicsh'tness. W.
,x« eofnpOMtrnrt. 92-T3
vn daddon making, <>4-9K
Functional mjtnimcs in conflict irw^Ua. 255
3'r?*^®®’ norms- $7-90
FmiclaniBiiiafihvacnihmion «mw. ''
reHwns to jouL K5, 86
nJes, 85-^i7
Gan-:,BiN..\'7.235 rizt\ *70 92
GE-Src Genera f EJectric startle. 93-94
G‘‘n<lcr is<uc$ vy, leainsi 10I-2
(irdcpshilt
eommuru aekui $n4e, 123-24 .4 fijfinjifi in drfisiw ritt hrtavtn ?4e grw/plt ikne^w tad ifce
eiiiPbcwi and.-^*^ t id» ji
rw JhvW«j/dra'w« ibaS mnbffr urrA’ra rhe i.'wh!
Icidcp^hip, nitiurgency dioohes of, fnakfi (ffn tirjien! rithtf fmserMtiSM tj>- greater
139-41 CrtMiprhink
in u*orkt<*r<c, 9 MTIWWCWB in n'bifh ihe norrn ft/r fansinstmnnrida tbf
Sft DjVTr*irv
/faitstic oppraimi nf aitrmatrz e fSM/ fW artioTT.
G«.enl Elecmr(GE), 51, 60.61,101,186. 190,256
General Rx^ds, JOI 95 96. 170
(rtnu^r Mills. 60 Ilabic aod resistance to diange, 253-
GenuMf Motors «iM). KO. 103,104. 122. 54
170 Hackman, T. Richard, 3fl6, 20H, 210
Geographic depart nieuializaikm, I SI Hall. li.T. 125
(iimbeJ’s- 9 Halo eJTccis and perccpfioti, 25
(;}oi»aliftirion ITainhurper Lniven»ily, McDonaIJ's,
pobdt^i and orgnmz.adcnnJ chdng<, 249,250 220
r*?spnh«a: tti, K-9 Hamner. .Mldtacl, V)h
wurk/lifcninflich, 10 Kappine-i'. as universal emotion, 38
SrcrfA^ CiUturi*^^ HUIMMIHL and nnss-mJtur&l Hara$$ncnT, sexual. Srr Sexual
issues harassment
CM. .Sir Ci'iH’rnl MiiiufS I larlcy-Davidson, 104
Goal achicvcmenc, a^ reason tu join gnnips. S6 Hasbro, 204
Goal-^i’Hing chewy Hawtiiorne .snirlies, 87-99, 164
J Ijf r6«?T That ipecitk ffn/i d^ciiir goffis lend p> hif^er per-
Herzberg, Frederick, 45-47
Heurkrics
frrwffncry 4^ Ai, 54, 262
jMig/nffj/ff/ shoifi'ufs /« derifiun rtukinr^. “‘6
(ioajs. team creadon process. 109
Hcwkct-Paekard, IfH. 103, 105, iW, 243, 244,2o4
W L. Gore & Associates, 101, 225, 2JS
W. r. Gr^nt. 9 Hiemrchy cif needs theory
Grapevine JArtffttfZtf rW.w/bv pnr;df</ hicrarxhy of fivf needs—
X« mfvrmnl (f*wnttnK97im «fra>cii'if tfitirrn i grut^ or phyjhfvgink sniety, svM, eyienn^ and sf^~

ZIP-22,129 fiaufilizati'in—and its (WtZ» «er// w

(rraphk rating scales
4»3 af^praiM/ z» rie cTwfMtfftir raffsfurrfir ibe ties't need heetmes dnntuants 4 J 44, 53
ftuncffeaors ttri an fwrtmfjftal scaif. 224
High-contert culture
Gray bar Electric. 63
Great Plains Son ware, 213 Cj/Zn/Ff That relief heai’iiy en rw/z'tjM end subik jiwii-
wwM.greedyassoiaarcs.com, 204 umel ciffx, 125

Group decision making, 94 98 I Illi, J. S.. 125

brain storming, Hiring ot employees, 2 15-18, 235
eiectronii meetings, 97-9X Hl stoned precedents, m^nmtional
groupshih. 96 consrruinU, 81
groupdtink, 95- 96 HoStede. Geert. 18, 19
vs. HUiividual, 94-95 Holland, John I.., 55
Kduiiqiirs (hr, 97-V8 Honda .Motoi*s. 31, 104
Group demiigraphv Honesty anil ini.si, 146
7>c duKTfr w :i-4irZr wr«»AnT e/^ gnwp jA^re a HoneyMcll. 103
fwiwfw
HouLcr Chctnieal. 66
we. ediuaiwfftt/
dftmtgriipbif armbaft, rufk « agr. vx, Hnrizortal hoiircbrir?, strucrursl organic chin, 190
frtW. ar jfTz ict fw ibe urg/mrumw, an4 the House, kobenj., 137
artrikaie Zunwi’er d«d jfln^rtj'on P
HR, See Huniflu resiMirce CHR) ptkides arid
Group urda ranking, 224 practices
Human relations vie*’nF con diet, 164, 165
Hunwn resource <HRj |Kihcies and
 appro baJ, 220-28
ded*itin.cnaUif\gbi>«s.
Jbgiene ^CPM^. twa-6veor cberwy 174
selective proo’«tn^^€.2$4
»f4«w AiAytM/f >«
Ifiiormnrion iWerlmd
^Wf iwkpiwft*. rsr ih,, rt., mhnan,^ K

VutiaUHgslnicPirv ' ”’'*3

pfoa/r
h, ..r bi-r nf. at^ tbm nfsvhit^i,^ i,

lg.M. 1^. Innuvaoim

/jij»o6f»o0n-lwsed mrsc
/7t^ A^rjT ki’A of :ruxT, aebievftd a km ifwy i^.in nftp. in oTganixati*inal culrure, 231
ixfmem tht 24“' siimulaboH of 9-10. 360, 262-63
i/Vna/5 7l>y^ 5Vorb. JM. 186 Innovadon stratesy
Bt 5?p Impression management z1 .rfnrP*gT /or nvan an4 nniiiue J92
wvw inskletb<'weh.ixini, 204
^LMj
InsTTWHoral values
IfilittQOi’ strategy
. / jrrjte^ yihvmitjug nxif i'nfer.vMf ef bfbainr w*

tki M y n Z5. 16
intRgreuv'e
Impf’ttanceanddqxndcncy, l.^4-55 targaming
fin|irw^« nWMxtff/e/jr/Zzii) >ic^otra&n jrrh a«r nrT^tjtfi frrrZempmy <n'
Z^r/»u,fjs fy a’d/fA uidividads aaan^ to biattroi the iit£ a V'tfi-'ipin 177
iOfprtxiKtn 9lbers of tkem, 160-6i

Iniprmement Integrity and inisL J45, i4$l

cijiwnual, and ouali^ juana^mc/ir, Infpl Corp., 154-55,264
mnDDunin improvement jxpcess. InuractioiEsr viewof contlici. 164,16S
198 InrerebC groups. I? 5
ptrr/bnnance appraisal, 225-26 InttfcgTOvp development
actual process ot, 73 -SI
Zncencvtj, ^fo’A/indc^dcfl G/J fij/orv t9 cZwgr tbt atf/wto,
al reman IT devcfopUJCnti 75—76
blcwiipBtibilj^ and conflict, 163 fwzw.4 v/irAfcviJr
fbat bniv off>fW. 269of/n/mflnwetTedfWDBfm. 2(Ki
bounded ration^bryJ 7^-74 201,202
lxirerra]ly-ciu«cd hchavwis 3 nd afttlbucvu*
liidwdiiat rlerisi<jii inakinR, 69-83
rhoiccs:^! J heuristics, Inrernettinic,
the*ify, M 204-5
nbout. 69 70
creaDTit)’ lu, 71-72 InwtrtU
rntcrpersonal communication, H6-18
oiktual influences on» 91
nonverbal, II7 Ifi
diftucavws between individuals, 7
nra], 116-1;
7-SO
tvritten, I f?
wnorions, 40
Interpennnal skills. 219
rlliics,
\'s. S294-95
^xip> Jnlerview process In emplavce selection, 216
unplita^^s for iTiatapcfth b5 Inrynaton as nonverbal comm uni caaon,
indnitlua) djffcrences, 77-bO Intra nee
inrcndonal procc^ of, 70-7 J An Zwrrrwff, fit 122,2/W
intuition, ?4-T^ Iriirinjiu: liisk iimtivalion. creative modd. 72-73
idenuficarion, 75 bl hl i don and intuitive dedrion making, 74-75
radonai model, 70-71 Invohtnent, employee. 5re Employee
sn Its, 77-7Q ippoberaent
lnjividuali>m, IH, 19,5i
J.Peternar, 9
(iuiivid\ttKs)
UWicr of, >rnpii«tinns for managvn,
.(ackso!i,J«»>s, 141
21-29
f<Kui on development of, 244-45
.hgo, Ariur C;., 139, HO
124. m
poliued Ixihavvw fictyrs, 15ft
Jargon an4 tVHhmunrc.iror
r«Uw\g, 224
e/Jectivef>«s,
24 f
J CM. 5>f Job charjcrtri*ucs mock!
Hsisianve to change, 253*54
mcu team pUyerx 11^3—12 JCl^ernev. 1S4
A/p Bebftvw, iudividvttl Jcsiis CbrisT, j3l
birtft a Magic. i03 Job cbaraacrj5nc5 TTIIXUJ CJCVV
InfUjciwe Srt»f\»wcr
Wormi) Kj
(raining. 220 Job enbfprinertt
b'i'jfnKtt.m
Job enrichmcni
cunt&noK'iKMjn of, 114
J CTTKoi fj^rutw
 Is

VI
4/

r
ffltedN
J
mrugerial gridi .
Tb,,\'K-iKMfiiof '/•
Ohlrt State snxl»e*,lU •
'I
?t

«Bnsta47i(iii orpnh^uumJ b<bi'4r>r in c«wnrM,

eo«M*em widi. 2 2CH-5
v%. |>»* er. 151
dcAned. H
a*r«kvwni- l4'-*4
Jrlenuiiwuis <>i. J 9 20 leati* cTuanon by; ^0^
personal ny. 12, 14 .16 tcaim f'T. 142-43
••atisfecnan, producO'’’H' and (X.B, uaii ibc«»ri€S, Bl. 1*1
2C1-21 trusf and. l*4-4K
two-ftetor theory. 45-47 . t.i
Univemn* r^xVlkhiguj >t«dKit 1J3
worksfre**, 26(^2 142
S« <2rt Mfuirr V\ Ulk
MAnaeemem
Sreve. 65 I .canting
John Dicic. 66. ini
ikuiieiL 26
JnHrw. f207
|oh(Min A JuhTfrOiu lOl. 17K, 242 individual l»cliaviort 16-2'^. 29
43.2^ iHganiuccful wlwre, ’^9-41
Jordan. Mkhad. 134 <Hgfinw.*iiiiwal rpiriraalicjs 2*^
Jndgmwr sboricuU and pcrccpoon. Leainmg orgarucubun
25 4n (ftvthfitii ctntoBirMf
ktsims Danid T.,
juarn'And dccisiou making, 82 rn ffd^r ami eh.ni^^ 2 56
256
ki nm’dy. J<»lin F, 1 Lea«( prpfefred co-worker (LPC) que^iioaiuire
f1 /in DKtr«wc7n that ^ritortt ttt v/httbtt t^entn v

KRWUCS LegiTimafc power

ZtfjK 'jr rtii/tnrruhip-orttitndy 7 3 5-5?
Tit JttfdJfWw af ntansns, I i 7-2/ Zlv /jospci M petjow rfx a rcmii fif iii ar itr patitim
m tbf fvrtn/fl hkrt/rrby nfan Mjanizafioti^ J 5.*
King. Martin Luther, Jr, l.M, 133
King. Sfcphen, 1V9 Levi Strauss. 65.122. r^<A20(|. 223
Levinown, P39
KM. Se^ Knowlodgp nwiwgrincnt (K.M) I cukki, R. J.. 172
Kniirtt Kidder lnft>rnuuon, 241 Lewin, Kun, 251 52
KnwkdgC'Uasnl inri Lde, (|U4iitin quality of, dnd oilcuTdl dssessnieni.
^axJ /w the hehireii/raipralierakUm Mtft ridtwrfront tS, 19
n/Z«rr#rfr?W7. 4*^ Lmg. Cian*; 209
Listening, aclivc. 128-29
KiKiwIeilgr managemem {KM|
Pfvms (/(.rgan/zrug dud an 9r^;irm2atiaB's atl LiiefMcy skills 218
ittih't thf rigfrt bffrrmatiQn t9 ihc Uicercr.J. A., 172
ptbpk at the ri^hi timt, Cl Bl home (toitipany), 1159
Kodak, 81 L. MX theory. I/fafler-riK’mU;r<jxchang<' (LJMX)
theoryuivuncrol
Kohl berg. Lawrence, 79 LovkheedAlat'iin. 111
.•f ambtttf jhat mfCtim tit n
Ki-upp-Hucsch, 11 fn^pit Mitzt iity Ufr rrtafteir of i/itjr azftfnt, >2

l^mprvia (restaurant). tAog-lerm v«. Ahori-tenn uricncanor. enti cuitural

tssetH’
24fMl in<nq tfl. 19
Laitghage and eomnnifikation gflgpnvffly**, Low-pi>i kUKt culture
124,128, 241
rhar relies vn jt prak’ n* twruQ
LarunI ccwnunkaiuiu. 116
laiu ul eliecc, 26 i2S
Ix-adcr-memliei «-u-hange (L.MX) ihtorv I. Ort Uy. U, J*. 145
ZSroQ- ibaf arf^er that iCi^'i^Ts tftahiuf) e 5/^rrZff/ reMr/wg- J. PC qur^iiunnaire. Si’ Least preterred oo-worter
fhtp TLfth £1 .weZ/;jrfl«p of theirfrUvatTy. i 37 (LPC)
Leader-member reUOnns qiu>b<mnain'
A-bcArtlnir, Otjuglas 141
Tit eanfiiirwt, ft wr, «md nMotuttft ha-at
Lyinc,
Marb. 1?6 6Ve Madiiavellianism (Mach)
tnthen lta^t. /
Mavhiave I Hail 15011 (Mach)
The rfrifrvg /» irbtth an rniiividuai is prappaant, aoaint^
Leadrr-partiap.uion mudeJ
.4 kaJtnbip tknay that praviiha a ftt to dnrpwmr tMMtmt d]nant.f^ M J Mm <KM ftfcO
rhefrt-m -yTwmVjytfm’r 4^r»tw wivhjr uttatn. i2
in
eitffemit nfttarmu. !iV A/,4O / )’<tdfvisi<a fH-ognun). 0
Leadership, 13<>-49 Maicniin Ualdndge Naikuul Quality Awanl
7^ to inffanht a gnvp Knasi! /*«' (if^/rrrwmr of
110
J goais, i>t) MajMKvtncnt
hchu^ioral appniech tn. 111-33. 134 fliang», pUeinul, 2.5MJ
I ih>o«^ org»n««do™’ dcrah^nnt I

culrurr. 255-'5H .^DaaldVS. ly.ltto/zio I

culture. 241-42 •'^'^wgvr. Dougki, 45
and Theory'.4> . Mead Pa|ier. 66
Metihaniuic moikl
Kle^’-hip Manager^ rmpl«xmsfor
^'TO/xStffKw f tatmed
^*l-«a-nr In- nbiertn'es (MHOj
,ia, iffnfK S!^. !>tniBi»OTfh Mdting PH assiimpdon,«
■ WaB fxpA.ir^r’^ nM mer^grr^
Mi-Ti. Se< Gender icyn^
Merrill Lynch, 64
aahmtig rigbtf-m iifftnHi ItuJ-
-Mc^ge, in c^munieahon pr««^ I I4.,j
.Mrt»m<,rph«.s «,g«, ,j, j*'
^^.unpheario-^for
be^ivr. go«rpi
l^elwiur* individual, 27-29

I
**>

: ..5
eKgani^jdonal. 264 65
corninuJiKaoori, 126-2/ Moberg, D.. 163

«•
(^mflicL 1*6 Modebnf behavior,
ailrure.organi2a0ora»l. 247 26
^edsiai making, individual. 83 Montgomery Ward, 9
e-wi^ KgadasoonaJ behavior, 201-5 MfxxE
tidf unJiahka ,hm n«BTO«(rt„
emuciofts, 41
taci a etftuemuil nianthn. 5^
honm resource (HR) polk-iei and pracdccs, 228-29
irtdividwl behavkir, 27-29 Moral de veiopmeat and deciaon-nabns sale 79-
leadership. J48-89 80
modvatioii, 54.68 Moria, Aldo, 235
ovgcmautHi. 177 Mother *Teresa. 131
persooaJiry, 41
Modvadon. 42-6^
pdrtical b^vior. 162 lilt ^iOingnai ta do iom^mg, cwdit'unedh dm
pever. 162 aMity rfi tomt nMif^trtbe mdh-idital. 4d

buucuue oforganiMfion, 195 behavior modificadon, 58. 59, 60

teams. 112 cornrDunication of, 114
tEduulngyand work design, 213-14 culrural issues. 55-54
e'OTgani^aQon, 201-.^
innt, 189 empV»yee inv<dvCTnenr pTXjgrams-. 6I-4M
values, 27-28 rmplovce i^CO^nvn progran^^, 66-61
.Mandell,Nebon, III c^wt) theory. 5^J-52
Man^ensrxi, C, 107 cxpccunvy chefJQ, 52-53
Marks & Spen«f. 85.192 goal-sening ibeory, 4H-49
•^fy Kay Cosmetics, 142, 2 3 5.240 implication* for managw*. 54 6S
MasloH^.ibrabam, 43-44. 53, 244 indindual behavior. 27
^Uss Histomiaaijon manjgemeni hj* objectives t-MBOX *.
prw«rr t^r are fkxibk to (reatr Ma^los^-’s hietwhy of needs thrttf^4J-W. ? A
wtt end ^4 im an indhviuady taibnd » fftdi^ McClelland ^ ih«)r>' of needs. 47- **
:«/w/nfrtoTOCTj. /W- K
^
2t5O path-goal theory oHeadership. I
'««F»udurtii>r> .J.'
151
JTrffldan/^rtOT. and autwutted perfonnanvr appraisal, 221
? ’*«#«7Hre ^mdnrcr m {me reinforcuncm theory; 49-50
rn orpni74rioiul culture. 240-41 doU-baseJ pay programs, A6-67
*
ShKXnr^ tlierrics of. 45-54
«aHwy,’ antb/ius Theory X and Theory Y. 45 f
iwo-Wor theory, 45-^7
variabie-pay pn^T«. 0^
Mocivjrion-htgien*^ theory; 4
''B^ll hvo (MB( h
Motorola, 101. ilO.
'k<.4iftn D biduator (Alin il
MoiKon.jancS.. I5J, 134
Muldpcrson con parison » per^>r^
.Mu?n>k’channels in
Mulupk cvaluaioR’ in pes**^
 Glinde*
tH
T>TW 5ndiwt.>r (MBTI)
Off-»he-j.>b tnminB. 220
r^rnnmir nrf Oaifit, O’Hare Airport (Chicago. FI.). 19.
rfifv OHf uf srvft^N pr>^onrf/rt^ jf
Ohio Stoic Ufldenhip studies H2, 157.
yjTh.rfraivw’l'ty.
BH
OlHham, Greg R., 206
nAch- 2^ avhiEiTiiienf On-dui-job
O|xnncss irduiing, J 20
NKkf, BJ to CXpcntfBCC. 3
^Aff. SzrNeed tor affiliancn oi^anizidonal spjfitualiry, 245
fuAft) TTU5f, 145, 147
N.ASA.6C
Opposidon and tonflici, 163 J64
Ndcunial ndiurcs. Sec CuJnires, nawwl. and cross-
OPJ! tonunujucacion, 116-17
cultural
National Steel (2orp., 189
ismnnFworkforce, organizational change Organiu model
Nature
249 J.WMfrarv fAtff is flit, usfsmshuiWYhiealiijylfn^.

NECCx>rp., 190 JvnaifMa! ft/w flrmab-.urrion, i*osr«5« g pp^j.

Need ^h*’a*av mfartsii/fJOtt fimwk, anj ow parjic^g.
.4 pAjxWcipW t^at nut a nirtafn
mvtlecisiffii ^5*/
Mfcuwes ffppe&r "f 3

Need tor achie^*emciit (nAch) Org^aiuuDvn

7^r<frjTr /c fXi'ei. 53 A flrmAi ifrucrurt totjitiinariM, mi'a/Pw^ fa,
Need for afliliaLiou (nA^
7)i<‘ fiesfre flf-g'Md inttirpenvni/t reZdi;oreiixp.s 47, 48, 86 jworr pfr*pZr. in p>Wrr M rf^lr/fTC a
Need loc power (nPow)
The vecd to iwatf ntht-n do is)hat rhn fl?i»ert>Zfi7 wonH
uwwwn
2-3
<»r/h^*diPr flw 47, 48
Nepodatinn, smicnire, 17B-95
pncifss m iffhich171-77
TWO »• mMv pans/t fxehnfivf gpwib cr
.4 Tfand artempf. U a^rtt an tba fx^btrnge rata flr g«»prA tmii cwr£-
How job tarkf areforvraiJy iiii’tded^

nafai,nnenbof.
17S 17H-K5
them,

bargaining sTrategies 171-73 in fonflirt prtjccss,

employee behavior, 16*193 94
wnftrctand, 171-76 ireplicadons
omsdiinesfor onmanagers, 195
dcasion making,
implications for nwnagers, 177 ineitia.
design 254-55
uf, I $ 5—8S
nsucs in, 173-76 innovation
differences stimulacion,
in, J 91-93262-63
Network* rcsisraniT to change, 254-56
forcommnnitatiun, 97-98, 119 team creanon. 1(W
v-vi-urld or^anizadfinal behavior. 205 types oc, new, 188 91
Xtrters, as cohort, wojk values of, 17 Organiiarinnal hebnviar (OB). 1-13
XiLe. W, 239 f be m»narie mtJy of the /sMns jui/ rftrrwrfrx petfie
Niuan, 60, IFH cxhihtt ’^ithtn •jrj^nnizifiiniis, 2~3

Nominal group Lcchni{,|ue Lxrntributing rli^mpUncs, 3—5

.1 dn.7>W7-«rfii»fl^ ntefhijd h wbub mdnidM/ «rrw-
croM-ml rural o»n> ide rations. 18-19
bm f»ieaf fler-fr^faev ry paoZ rftf/rm a .^r-
in «• world, 200-2 [16
frflfctjbc biu mdnpend^T fashion. field of. 3-5
Nonverbal conununicadon, 117-18 goals of, 5
Nordstrom. ?3». 339 managerial challenges and opportunities, 6-13
Ornfluizabonal change. See Change, organizaiwHial
NoTcktroinJoIin W., 239 Organizational citizenship
Norms .frwpwWr oftifhavior ndthm a groep that off Dsteretiwuty hbaviot' that is no/ part of an nwgAn*?//*'

.cZwo’/ the pTovp's mtfttherst 1i7-9O ma! job tx-qian mi-nts hut That ncenheifys ptwroies
coefonnir}' and Asch studie. 89-90 effeeftei funcTiwing f 4trgrftfZ2</?/fl«. 2
Hawthopne scudics, 87-R9
surus and. 91 Organ ba hoiul cicizcivhip bebavi<jr (<X2B). 3, 20-
uFw Set Need liir ptiwer (nPow) 21
OB. Ser Orpnuidonal behavior (OB) Organizational odturc, 23U-47
m tL>hith nuna^en idem^ perfanmmce-relaKd cre^non and sustaining of, 234-
.1 sysTew of shared mearnng beid hr fAar
/be organtsUT/an ffotn other ot'ganizffls^*
38.239
fa strengthen desintkie perfomntme #r«^rrtrf 23i
dvhned. 330-33
employees learning of, 239-41
and mior tatdestnbie 54. 59, 60
ethical, 242-43
runctiins of, 2.B-34
oca. Srt nqewiMMul ddzraidMp behavmr
impheatsom for managers, 34?
<30- SM Opaiadaui develqNnm ((>D>
innuvatiitn *tinitdaoon. 263
 P«r6^»oe appttM. HtJ-Ig
.'46 «»fheha*H»p«, 222
c^dh'e«Mfy »mrd, n|.^2
?46«47 •r.-alu»tar». 22?->3
*eh^«K* J '^-60 feethwH*.’’(^27
III glotnl <*nntexu 2’K
_^,ttf*|if) Jhd. -’45-46 »mprq»»«r»wiw (rf. 225-26
dn*4».pfflfTM (ODl »»f UKlmtbal t^k ,wtoMiwt 2’’I
n'lfiVoahns. inuit w medu-ds 223^5
/i0e^M(*Tin^*.j^TV97r ‘.'ittMis that rtrk ti» tmfirtw Tnotivabon, 221
Mcrgroop tk*>*c)<>pn<cnL 260 oftQ*n\, 22“-IM
ri/iniiu. 222
8«nprifr<*^<M^ 357-60
Perfnrm»nc«*Mmulaiii»n t«ts,
mMOmy mining. 257-^X Pcn-md raiublH in v.mRia brocea.
*i?f*<j* fcc4b«k» 3.4K 167
KMt teilrfing. ^5^*60 PenonaJity, J0«-J6 **
Tl..
iniprovtiiient, 1
Qi^ter^ onentauoa in nrganuMUtfial nhore, 231
. t/uaf naer^ .Wd/ fif/^aas wkn w
(MnwAieniv. dedshia oulinirbust!^ 174
p^dfonilWOM"’ ev-»lu»''™’-
ewrip.tW» ’"d rrilSMC •■> d'lflgt. 2’5-« Big-Frve.4lode1. U-32
ivLcuTtand, ^*—34
PtTtiu;wli« I5»
irnphcjuons tor managers.
41
,4 #w4tf t»} wZ*/jA’wK//*«nr e 4
jt*b tna&chm^*. 34-36
<r«Wi-w*wjr ** fvpff^r
kieus M
>52
WicliMvdliJnisfn. 32 . .
Paretfunia, 2^^
.Mey ers- BriBK^ Type Indkaior J|
FKlKjN»Ifh«>r> ui ncgQQ4<ieM\, 174
n •• Inikt'i Mtni^r it mpMt
r»>k prvpvfl^icy, )3.54
n^i ms/fitr a tbqi r/f t? it ax 8 »»TP imr^-
svlf^’sccon. 32-33
^fferfifwn farr^afthti, ff7-39
self-mamtneuxg, J J • •,
P« team romposidoa. 107 .
e<]uiiy ihcun; Type A, 5334
51 PersuruUtf U(jn and fVt>cc&s, 16B
sbU-b3$«d. J. Petermiln, y
66-67 F< ten. Turn, 25 J
oms^
PKvUcai disonce « nvQvvtlnl comTwmeaMA,
vahiMe. 64^
W.*. Set con^uhidoft (PQ Ht
Prtr ekiloatirw, 222 PliyM^Jugical needs, 44, J 3
JCPeunw, lfi4 Picaiw, 72
l^eopji. cmpc»i;mi€ftt Pitxv-nnepas pHcu
ll^frkttT at-t faid 8 Httit fif' rath u/tit ff
<iG (Otfipkted^ 6“^

onmuDon in urvanizadondculnm*., P\77A 1 lut. 66

2 JI Pjanned change
^’^'’pU iiHs. J, 7
r uj-rt-wer Z>wf wZevJZWfl^ anJ
>*enpJcSf.*t,2n
bpsiOi. J04 2R/-51
^ehtpHin Mitsed behavior. 157-62
ihet are nat aired parr pfonetp
npHwtiem ihcozy. 23-24
nkr Mi fi* w/«r*^
'><««nflkt, 163-64
iMndnidiul behnior, JJ-25, IB-» a/^.tnpr fa wA*’***^’
'"pBenishwcuw.Zi me
‘dcwire, m c-unrld o^fsjM/anurtil behiVWJ6 >"
ethics uf 161 -62
^^^luaiion *4. 159
factot^i cwrnhudn< w. _
«pcMU£hyih«,*n.52 giubah and "
2''^i:«ncn< .'dnertve. (M«OX il implkatiofK forniarUgcn, 1^
impwsswnnuiagenwnc. IhD'Ol
2*»»B**r*koKm.2 IMIjncal <iente ..
ftJitMl ea-.imouf^K
 PdAitiim power
3/ mfiurmT a Itader hiT«rt*r^fB*r t f/wtA’’
IhiUlU
/•hrrafr.f,
Quriiiy.
Potential opposmou in cwifiKt proetsa. 6ualiQ>* dTvItfS . , .
166—6' 4 wrJr pW rmpi^evs njitninn yth.
Foiwdl. Cotin. [}1 wfrt «*
Puwdt, 156-62 ^fr .?wyr>. »rrWW('»'/ TP/r/?’WJ#, and rakr c^trjf
.4 ur/M,ti^ that .4 bos n utflitmcf Mr h-Afttfr acli'^ft^-
» rhtt S th rto' ©rAH’OTJf owW Qualu>’ iiprap--invnt
»«/ eAv X ^fw,tn,i!^fn/fM thnf fr rf?‘rw9j frv rtf CWWOTJ
?5« rtf rtBrtiw.
haws of, 152-54
dependency, 154-55 QuJity «*’ and culuiral .isjussnuhi, tH, 19
distance, andodhJral assessmem,
IH, 19
Rat* and workforce di versify,
cn^w-erment, 7, Q, 245
group, 92-05, 1^5-56 "-5<
iiopUrdTiims for niaiiiigvrs. 162 Stf d^rti Pi versify
rv. leadership, i 51 Ratii^nal decision-nuking model, 70-71
polices (<^n’ Polilical b6h■^'i(>r) Ratit>nal (decisions)
pot^idon, in h’lcdlcr Miidcl, 155-36 C/’cApf that an An.t laitie-vtascnKiung-vtil^

as ('eason to iidn gn>ups, S6

sexual harassment, 156-57 Raven, ^‘rtram. 152
spirinialicy, 245 Reading skills, 2 IK
threat to established power relatioilships, Receiver, in unnmunicnliun proctss, ll4-
2» k?
Powrr-CaWe Coqj.. 10.^ Rixn ignition programs, employee, 60-61
'I'Af Ptantcf (television prugrani), 87 Kedcsi^ii, work. 20^-11, 262
Pre arrival stage, socialization, 236. 237 Reebok, IK^
PreeonvenaotuJ le^'el, moral development, Rcengineeniig, process. 6-7, lVR-99
79 Rckreni power
Prediction of behavicr, 5 hanii bif hy CTJitiJjw/ of

prefereruxs of member and team JaroWr

composition,
Preftincaine, Steve, 239 Reintori'cmcnt fheon’
fh'cntice lldl, 6 *
Price Club, 31 .4 jirA<rvW’iyTfc apptffoeh, which ar^tf tffafmtthnvTfNn^

Price Lwe.com, 205 t'«»d'i7M#u 49-50. 60,61

Principled level, moral dcvclopiueat, 79,80 Rclaiiomhip cimtlirr
Print on Demand. 199 Confia t/*ar fci'use.f nn 265
Problem tdennficarion, Rehtionbhips, e-organiiauon ledefiidtion of 2O5 -6
75 Rcprc.sentifivc heuristic
Problem-solving skjllfk, 77.^ fm people rs judj^f prehMity if a fiifve
fi^ warch ir wifh a pmxiaixg
219
Representitive parueijMdon
ProUem-snking ceam^
Gnwpyoj ffz t eo n/y/z t f w/rZcivrf//ri»H rtr.ww^ dt/xsWT- Fko#im pairietpa/f M ^tgatuznnona!4(«rtw3 sJffiwj
Wfwrs'Ao wtfsZ jiff a htotrs fj/ib nfek w il/scuif ’u-uys o(yjn)74icicinal,
//wwg// 'f j7?wrZZ,^w^ 254^55
o/'nr/hwwwrr.^
ovtTconiing,
Resistance point, 255 -56
distrihniive bsrgaunng. I.’ 2
aj ttnpf tftwji tfualiry. vjfiaitwy. anti thf rwj frow-
Resource
Resisiaru*ailocarions. threat to, 255
ro change, 25}-56
ww, 1/72-3
Resuuret's
mdividual. 253 avaibhiliiy,
54 tram creafion, 10^
Process conflict Reward
Vaaflift ibat ntatty to h</w work dant, 165
accepujicc and resi.s-wnce to c hange, 256
Proccs-s consulcjtiim (PC) dissunanee reducUiMi, 22
.dv asiiitk ama/itant assists a rtewz, amity a fftanagtr^ t9 equity theory. 51
^rrow. undtrrtOtid. Jvd act oa ptOitif a'tufy with ejrpecta I icy theory, 52
U'hidf be tir the wuyl ikjfi, 25^-59
syttem organizational eotweraint
Piocess departmentaiizarinn. 181
Reward piu'cr
Prwea* reengineering
CafHpfMfter haxd an rtf tfMdy rtrtn^®*
«WflAXm to rmwiiider bow tvork wottSd h dow and
tbtrr or^antzariM yrrHovred rtey mnmo au-r

6-7, iw-yy ’ zru^nak that ttfhtn IWK' AF / 55

Procter & Gamble, 154-55, 181,216

Produedrih. 2,2li-21
Profit'tbtru^g plant
fngnne tbti Jinrihtn (wtsmirton
 ** * •
^nuHiviiy tniiniBj

T^iao'f; gn,f, ,ia,,^^.

V'n. rifom’

xrywfli’'' r»;»ni WA/^

Shaping hritni.*,,A ^'-la
Shea St <-n>v^d, J/|
Z**^ a'^AT^ Sh«».a.xUhLifHn,i,v«,«Cn IQ,
Sbi«i<iu. 101 •* ’*•’
«¥ Shurs-icnmvlonfc-ienn.rte™,.
a sxi««i n eji I. ig,
jlolt->fh,M,k--n-'-' Siemens 11.22(1.26)^4
RoKeadtVihir.Sio-eyiR^y. *> Simpk •4rxi<'ture
*^7/^ Dfrrfr^J brbizur fallena that mt atrnhlttJ
n«bi flvw/ k httf,
^ttvifVzlL, Kra nUin Deb no. HI
«p -*1. & s.™i
ftpjnnenw’*. ^^prec ^^t, IV .<
Sji:-per.Kon9hiy-typcs nuKkl
Rout. A.} . 79 .4 that rilaif, an naplam't ioh

R<niJ BankorCajiadi. 264 bfrptnma,Ut^-nff.i4-

Sl?4.'
Knya/lhiu* Shifl, !05. IH6
of groups gfuup behavior, 9tk'i2
Sumuf< jod icTJptrvwe tommunkadon. 120-21
{10^) Rukeach Value Survey. 15 ar^niz;i tonal ciihuirand. 242
Sadnet^. M 4Ji^i»*enai anocion. 59 or^nixabiKrt^ ’itnuture and, 192
Safetj* nceiis 44. 53 «f team and ream corupmitun, l(17«g
Sail 6icRuZ4ii<» lOl Skill-based pay
Sarislii-uiifi.iob, y<vjul> Rry iifiTb tiff hand w bfrv fnu^ siiib tutj^nffi Uuae
MUsfei’tion Zioir jrjv thf^ artt dv, 66-^7
SiirifiangmcxIcI ofded^on indkin|(, Skllh
75 fifed bnck, l27-2fi
firianiOcporadon. lAl lj<rciii ng. active, 128-29
Sramry negudatinr. lift
<o(^ctwd, IM, IM ^j«»pfe, I. 4
(^t^ndency and, 155 training programs. 218-20
SdieAilmi; options, 211-15 variety «f. iri jot didtacTBr^sciv mudd. M 207
SdXAded. Laura. 60 SmalVgroup network ccmmunkaixin. H**
Sear^a5 IR>|
rcawn co ^^MipS S6 Smith, b'rei 2)5
StOlrtty; 254 hl dxingc, 254
fesjrtnce Smith Corotm,
ScJcinon (ifcthpVi\ecs. 23$ ScKUil inknuadon.pfwttsuflg iNH
Selcrtive infurmatum pcwce^4n^. 2 >4
Sdeoiie paruetpidan, as bather tu i^e pn-nAd hj ctbft, ttth "O'
effective comniunjca-
uoa 125 nwMiT.
feletdhft and pcaepwii^, 25
^lf-«tuafeaii<ia44. §5, 244 oaaa.a

coew. in enuxiunal inidliwnce. )9 9J, no

SoebJ netrJs, 44,

'^^^'^•triiapnf^tlittartb.'iltkrrbewfrtw. 5)
06 .Sixial psnhciU^
perfomwe ippraKal, 222-2)
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t* fifiM pnpk TFhc takt Ht «qi*wW<»ef
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SiwdrvM AsriiM,. •*^***•25^ .ZK
2l6i 243.244, ,A
243.346
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mMMf^raiv imptn^onm K*
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.
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Sttreorypanga
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pweeftton. 142-4J /.“
ndorrv, 231
23 odencAoun J
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leaming pr^juJann* oC -
cnJturr,
-6 239 lOl
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2.33 96i
. panem, v mnk t
types uC 102-5 :' • .* :

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Srr Oiganizacicn yjutwre 2i8-J9
Suhnrdkuos "lecfanoiogy
pad>guai •rijrtcrftw fr«^
tx itt aipKi

tbeonr, 138-39 ai»^

l92-9i

pv^u*)nan(X Tedski^ and work

appraisak, 223
hamoDcni by. dc»gB, 106-214
15t^57 impitcaftoas fef215—
Sopehors
peHbrnttKe 14
appraisab. 222 «xgQn»^^Moo>l
hanssDCOt beharior ia e-vorU,
136-57 2)4 200-206
Soppordvt'etmer pnijena.
orgafijmtioful dungv.
leader.
Sank.J. 1.3 < 240
Swyise. as uanmaJ emodm. sd^tthiHng opCKMK,
341
L,2<W.21D 211 '-13
Sarver rnaxenaJ. tn
Symbols, u*ork design. 2<X«-5
omzuzxkmd odturc. 240- vori jcdesigo. 2(7^11
Redback ui vT^rkplao^ 196-200
41
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n 0rfi1
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J time
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dMfeurr^aau*
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x

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amdel, 206.297 (Wvtd •4t:

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2M

duraccembc modd. 63
206,297 .
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rl>arfi>linr>n in tAr Jirtc- Vcrtiia.1hf,un.lirie,,....,

*'■ viant. 236 ‘

,tttr n> inmemi ike.t ,^-n V..R-.K.,nfcrenoBg, 122

Vinnn GriHip. 235
"• tktirfoHoV- Virtual office. 212 ’
Virtual yrganiz^don
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leadcrdiip,!**-^
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TufAPVc’f. pznCTfj. /^2,205 *"
<m^)byee, 2 Vneanooal Prelerence lnvem<v>, 34
j*i».hcBjf iheon' Vulkswagen, 146,264
Afftzrjwrr/iitnf to /oft utti^action. wbHf Valw.8. 101
bigtfK J.wwrr^ v/fb ^wvh>j^kt/nr. Vrootn, Victor, 139.140

TvpeApcrsooalicy W L. Gore ic Associitei. 1(H. 22215

.^.tflpcrrZ^e, Zw/tfMfWf, <*»/»!/>//w ax ppnne. W.T.
UtKerMhiU av^jubnee^ and cultural asse«siucnt, Wai M«ir ’166.192.’01.256
10, 19 IVali Di>nc\ (ki., 6.^, 216,234
Cmlnnniry ofo^^izjri'Wial culture, 231-1A Wak Di^iivy Imagiiwcring, 60
Vmns. hl Weak nilnire. 233.242
Vniwl Airlines, 6i WvathLr ('.hanntl. 2U2
Vniicd Psael Servire (UPS). 223 Wcii rhe rill A«*ndatfiS. 243
Iniiy of fomnund pnndplc
Welch..hiui, 190
/'riyw itfiftt/d befvc rinf fi,ni ^rjiy sttjteaor tv 'u A«w /5r MWrrn KlectricCntnpany; If?
/if K eftrtaf)' rtfpfttisihk, Ji*2 WeverhauAt; 60
Unenjzv .ifAhchi^ Survev Reu-arch Center. 133 WieeK in nctwfwi cumfmunatioo.
P'' (I iwttd Parcel Semu). 223 U»
^J^Wcomiwuiicarioii, 115-16 Whirlpcnk 264
}- > 197 \\7itLr-*arerraj«ckiJfflile, 252
l-nburunj^n^ WHitimiiL .Vtetf. 2r>4
m -^hicb ife^isw^are aadt ioleiy tm the intu/ of V\1b<uu.l<»scph <C 235-36
Women \pf CiCTderiswc^
M.. W».mh Pclcf. 6
Wcx>J*^«th«
3*^ /A« frpnirrtt jt prnrjtiziag tf z«^’idEW/ Work
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or^^Awa^rAtf* 117
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 PHEN P. ROBBINS

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