Organizational Behavior

Ninth Edition

Robert Kreitner
Angelo Kinicki
Both of Arizona State University

McGraw-Hill
Irwin

Contents
Preface

Summary of Key Concepts

via

Key Terms 29
OB in Action Case Study A Passionfor the Planet 30
Ethical Dilemma Caught in the Layoff Wringer 31

Part One
The World of Organizational
Behavior 1

Web Resources

Welcome to the World of OB 5

Organizational Behavior: An Interdisciplinary Field
Some FAQs about Studying OB 6

Defining Diversity 35
Layers of Diversity 35
Affirmative Action and Managing Diversity 36
Building the Business Case for Managing
Diversity 39
Real World Real People ATA Engineering Inc.
Effectively Manages Diversity 40
Increasing Diversity in the Workforce 41

13

Real World Real People Debt-Burdened Students

Help Themselves by Building Human and Social
Capital 15

Real World Real People Best Buy Uses a Women's

Leadership Forum to Build Employee and Customer
Loyalty 43
Managerial Implications of Demographic Diversity 47

The Managerial Context: Getting Things Done

with and through Others 15
What Do Managers Do? A Skills Profile 16
21 st-Century Managers 17
The Contingency Approach to Management 18

Real World Real People Miami Children's

Hospital and Shaw Industries Inc. Focus on
Improving Employees' English Proficiency 49
The Positive and Negative Effects of Diverse Work
Environments 51

Real World Real People Businesses Help Develop

Nonprofit Sector Leaders 19
,.

Barriers and Challenges to Managing Diversity

54

The Ethics Challenge

Organizational Practices Used to Effectively

Manage Diversity 55
R Roosevelt Thomas Jr's Generic Action Options

56

19

Real World Real People Pennies Add Up at

JCPenney 20
A Model of Global Corporate Social Responsibility and
Ethics 20
An Erosion of Morality? 22
General Moral Principles 24
How to Improve the Organization's Ethical Climate 25
A Personal Call to Action 26
Learning about OB: Research and a Road Map 26
Five Sources of OB Research Insights 26
A Topical Model for Understanding and Managing
OB 27
XXIV

31

Chapter Two
Managing Diversity: Releasing Every
Employee's Potential 32

Chapter One
Organizational Behavior: The Quest for
People-Centered Organizations and Ethical
Conduct 2

A Historical Perspective of OB 7
The Human Relations Movement 8
The Quality Movement 10
The Internet and E-Business Revolution 11
The Need to Build Human and Social Capital

28

Real World Real People Sodexho USA Fosters

Mutual Adaptation 58
Summary of Key Concepts

58

Key Terms 59
OB in Action Case Study LeasePlan Effectively
Manages Diversity 59
Ethical Dilemma Should Wal-Mart Pull the Plug on
Ningbo Beifa Group? 60
Web Resources

61

Contents

ChapterThree
Organizational Culture, Socialization, and
Mentoring 62

Real World Real People Should Anthropologists

Go to War? 97
A Model of Societal and Organizational Cultures 97

Organizational Culture: Definition and Context

Dynamics of Organizational Culture
Layers of Organizational Culture 65

XXV

64

65

Developing Cultural Intelligence 98

Ethnocentrism: A Cross-Cultural Roadblock 98
Cultural Paradoxes Require Cultural Intelligence 99

Real World Real People Williams-Sonoma's

Espoused Values Focus on Employees, Customers,
Shareholders, and Ethical Behavior 67
Four Functions of Organizational Culture 69
Types of Organizational Culture 70

Understanding Cultural Differences 100

High-Context and Low-Context Cultures 100
Nine Cultural Dimensionsfromthe GLOBE Project
Individualism versus Collectivism 105
Cultural Perceptions of Time 106
Interpersonal Space 107

Real World Real People Home Depot's Former CEO,

Robert Nardelli, Fostered a Hierarchy Culture 74
Outcomes Associated with Organizational Culture 74

Real World Real People Arizona Hospital Blends

Modern Medicine with Navajo Traditions 108
Religion 108

The Process of Culture Change

Practical Insights from Cross-Cultural Management

Research 109
The Hofstede Study: How Well Do US Management
Theories Apply in Other Countries? 109
Leadership Lessons from the GLOBE Project 110

76

Real World Real People Toyota Plans to

Restructure in Order to Change Its Culture

79

The Organizational Socialization Process 79

A Three-Phase Model of Organizational Socialization 80
Real World Real People Herbalife International
Effectively Uses Onboarding with Executives 82
Practical Application of Socialization Research 82
Embedding Organizational Culture through
Mentoring 84
Functions of Mentoring 85
Developmental Networks Underlying Mentoring
Personal and Organizational Implications 86
Summary of Key Concepts

85

Key Terms 89
OB in Action Case Study Cisco Systems Uses Its
Culturefor Competitive Advantage 89
Ethical Dilemma Credit-Card Issuers Have Cultures
That Focus on Growth by Targeting Financially
Strapped People 90
Web Resources

Preparing Employees for Successful Foreign

Assignments 111
Why Do US Expatriates Fail on Foreign
Assignments? 112
A Bright Spot: North American Women on Foreign
Assignments 113
Avoiding OB Trouble Spots in Foreign Assignments 113
Real World Real People Training Needs to Fit the
Local Culture 115
Summary of Key Concepts

88

117

Key Terms 118

OB in Action Case Study It's All About
Face-to-Face 119
Ethical Dilemma 3M Tries to Make a Difference
in Russia 120
Web Resources

120

91

Part Two
Individual Behavior in
Organizations 121

Chapter Four
International OB: Managing across
Cultures 92
Culture and Organizational Behavior 95
Societal Culture Is Complex and Multilayered
Culture Is a Subtle but Pervasive Force 96

96

102

Chapter Five
Key Individual Differences and the Road
to Success 122

Contents

XXVI

Self-Concept 124
Self-Esteem 125
Real World Real People Military Veterans Bring
High Self-Efficacy to MBA Programs 128
Self-Efficacy 128
Self-Monitoring 130
Organizational Identification: A Social Aspect of SelfConcept with Ethical Implications 132
Personality: Concepts and Controversy 133
The Big Five Personality Dimensions 133
The Proactive Personality 134
Real World Real People Climbing Life's
Mountains Requires the Right People with Proactive
Personalities 135
Issue: What about Personality Testing in the
Workplace? 136

Personal Values 154

Schwartz's Value Theory 154
Value Conflicts 155
Work versus Family Life Conflict

157

Real World Real People Karyn Couvillion Quit

Her Job in Response to Work/Family Conflict 158
Attitudes 160
The Nature of Attitudes 160
What Happens When Attitudes and Reality Collide?
Cognitive Dissonance 161
How Stable Are Attitudes? 162
Attitudes Affect Behavior via Intentions 162
Real World Real People Attitudes and Beliefs at
the Core ofMachinists' Strike at Boeing 164
Key Work Attitudes 165
Organizational Commitment 166
Job Involvement and Employee Engagement 169

Abilities (Intelligence) and Performance 136

Abilities and the Need for Sleep 138
Intelligence and Cognitive Abilities 139
Do We Have Multiple Intelligences? 140

Job Satisfaction 170

The Causes ofJob Satisfaction

Emotions in the Workplace 141

Positive and Negative Emotions 142
Developing Emotional Intelligence 143
Practical Research Insights about Emotional Contagion
and Emotional Labor 145

Real World Real People Organizations Assess

Employees'Job Satisfaction Even during Bad
Times 172
Major Correlates and Consequences ofJob
Satisfaction 173

Paving Your Road to Success with Lessons

from OB 145

Real World Real People Phenomenex Inc. Uses

Fun to Reduce Absenteeism 175

Real World Real People Failure Is Not an

Option 146
Psychological Capital 146
Deliberate Practice 147
Luck 148
Humility 148

Counterproductive Work Behaviors 177

Mistreatment of Others 177
Violence at Work 178
Causes and Prevention of CWBs 178

Summary of Key Concepts

148

Key Terms 149

OB in Action Case Study The Best Advice I
Ever Got 150
Ethical Dilemma Is It Time for PerformanceEnhancing Drugs in the Workplace? 150

Summary of Key Concepts

151

Learning Module A: Self-Management (Web)

"
,
Values, Attitudes, Job Satisfaction, and
Counterproductive Work Behaviors 152

179

Key Terms 180

OB in Action Case Study Companies Are
Trying to Improve Employee Attitudes during the
Recession 180
Ethical Dilemma How Would You Handle Employees
Who Fake Illnesses to Take Sick Leave ? 181
Web Resources

Web Resources

171

181

Chapter Seven
Social Perception and Attributions

182

An Information-Processing Model of
Perception 185
Four-Stage Sequence and a Working Example 185

Contents

Stage 1: Selective Attention/Comprehension

Stage 2: Encoding and Simplification 186

186

Real World Real People High Achievement Needs

Can Lead to Negative Outcomes 217

Real World Real People In-Store Displays Help

Generate Sales 187
Stage 3: Storage and Retention 189
Real World Real People Yukihiro Yamazaki Uses
Information in Long-Term Memory to Evaluate a
Vehicle's Performance 190
Stage 4: Retrieval and Response 190
Managerial Implications 190
Stereotypes: Perceptions about Groups of People
Stereotype Formation and Maintenance 194
Sex-Role Stereotypes 194
Age Stereotypes 195
Racial and Ethnic Stereotypes 196

192

Real World Real People Tiger Woods Experiences

Racial Bias 197
Disability Stereotypes 198
Managerial Challenges and Recommendations 198
Real World Real People Walgreens Effectively
Accommodates People with Disabilities 199
Self-Fulfilling Prophecy: The Pygmalion Effect 199
Research and an Explanatory Model 200
Putting the Self-Fulfilling Prophecy to Work 202
Causal Attributions 202 /
Kelley's Model of Attribution 203
Attributional Tendencies 204
Managerial Application and Implications
Summary of Key Concepts

205

206

Key Terms 207

OB in Action Case Study Job Offers Are Won and
Lost Based on Interviewers' Perceptions ofResponses to
the Question "What Are Your Weaknesses" 208
Ethical Dilemma Should Brain Scans Be Used to
Craft Advertising? 209
Web Resources

209

Chapter Eight
Foundations of Motivation

XXVII

Process Theories of Motivation

218

Adams's Equity Theory of Motivation

Real World Real People Fired Contractor Seeks

Revenge against Fannie Mae 219
The Individual-Organization Exchange
Relationship 219
Negative and Positive Inequity 219
Dynamics of Perceived Inequity 221
Expanding the Concept of Equity: Organizational
Justice 221
Practical Lessons from Equity Theory 222
Vroom's Expectancy Theory 223
Expectancy 224
Instrumentality 224
Valence 225
Vroom's Expectancy Theory in Action

Motivation through Goal Setting 227

Goals: Definition and Background 228
How Does Goal Setting Work? 228
Real World Real People Mitsubishi and
Emory University Attempt to Set Sustainability
Goals 229
Practical Lessons from Goal-Setting Research 229
Motivating Employees through Job Design
The Mechanistic Approach 231
Motivational Approaches 232

231

Real World Real People Tata Consultancy Services

Uses Job Rotation 233
Biological and Perceptual-Motor Approaches 235

Summary of Key Concepts

Content Theories of Motivation 213

Maslow's Need Hierarchy Theory 213
Alderfer's ERG Theory 214
McClelland's Need Theory 215
Herzberg's Motivator-Hygiene Theory 216

225

Real World Real People Aflac Uses the Principles

ofExpectancy Theory 226
Research on Expectancy Theory and Managerial
Implications 226

Putting Motivational Theories to Work

210

218

236

238

Key Terms 239

OB in Action Case Study The Pay-for-Performance
Program among Denver Teachers Hits a Roadblock 240
Ethical Dilemma Should Retrocessions Be Allowed in
the United States? 241
Web Resources

241

xxviii

Contents

Chapter Nine
Improving Job Performance with Goals, Feedback,
Rewards, and Positive Reinforcement 242
Goal Setting 245
Two Types of Goals 246
Management by Objectives 246
Real World Real People Starwood'sNew CEO
Frits van Paasschen Runs on Goals 247
Managing the Goal-Setting Process 247
Feedback 250
Two Functions of Feedback 251
Are the Feedback Recipients Ready, Willing, and
Able? 251
Real World Real People Culture Trumped
Performance Ratings at ITT 253
Practical Lessons from Feedback Research 253
360-Degree Feedback 254
How to Give Feedback for Coaching Purposes
and Organizational Effectiveness 255
Organizational Reward Systems 255
Types of Rewards 256
Reward Distribution Criteria 256
Desired Outcomes of the Reward System 257
The Building Blocks of Intrinsic Rewards and
Motivation 257
Why Do Extrinsic Rewards Too Often
Fail to Motivate? 259
Pay for Performance 259
Getting the Most out of Extrinsic Rewards and Pay
for Performance 261
Real World Real People Should Teachers'Pay Be
Tied to Student Performance? 262
Positive Reinforcement 262
Thorndike's Law of Effect 263
Skinner's Operant Conditioning Model 263
Contingent Consequences 264
Schedules of Reinforcement 265
Behavior Shaping 266
Summary of Key Concepts

268

Key Terms 269

OB in Action Case Study The Employee Whisperer 269
Ethical Dilemma Rewarding and Motivating
Employees by Ignoring Their Unethical Actions 270
Web Resources

270

Learning Module B: Performance Appraisal

(Web)

Part Three

Group and Social Processes 271

Chapter Ten
Group Dynamics

272

Groups and Social Networking 275

Formal and Informal Groups 276
Functions of Formal Groups 276
Social Networking Is Blurring the Formal/Informal
Boundaries 277
The Group Development Process

278

Real World Real People For Better or for

Worse, Social Networking Is Breaking Down
Walls 279
Five Stages 279
Group Development: Research and Practical
Implications 281
Roles and Norms: Social Building Blocks for Group
and Organizational Behavior 283
Roles 284
Real World Real People Take Charge of the Role
Conflict in Your Busy Life 286
Norms 287
Relevant Research Insights and Managerial
Implications 288
Group Structure and Composition 289
Functional Roles Performed by Group Members 289
Group Size 290
Effects of Men and Women Working Together
in Groups 292
Threats to Group Effectiveness
The Asch Effect 296
Groupthink 297
Social Loafing 299

295

Real World Real People A Callfor Better

Corporate Governance 300
Summary of Key Concepts

301

Key Terms 302

OB in Action Case Study Unmasking Manly
Men 302
Ethical Dilemma My Boss Wants to "Friend" Me
Online 303
Web Resources

303

Contents

Chapter Eleven
Developing and Leading Effective Teams

304

Work Teams: Types, Effectiveness, and Stumbling

Blocks 306
A General Typology of Work Teams
Effective Work Teams 310
Why Do Work Teams Fail? 313

307

Effective Teamwork through Cooperation, Trust,

and Cohesiveness 314
Cooperation 315
Trust 316
Real World Real People Designing Buildings with
Employee Collaboration in Mind 317
Cohesiveness 319
Teams in Action: Virtual Teams and Self-Managed
Teams 321
Real World Real People Xerox's "Future of
Work"Project Foresees a Flexible Global
Workplace 322
Virtual Teams 323
Self-Managed Teams 325
Team Building and Team Leadership
Team Building 327

327

330

333

Chapter Twelve
Individual and Group Decision Making
Models of Decision Making
The Rational Model 337

334

336

Real World Real People McDonald's Used

Multiple Methods to Identify a Problem 338
Nonrational Models of Decision Making 340
Integrating Rational and Nonrational Models 341
Decision-Making Biases

342

Dynamics of Decision Making 345

Improving Decision Making through Effective
Knowledge Management 345
General Decision-Making Styles 346
Real World Real People LydondellBasell Focuses
on Retaining Employee Knowledge 347
The Role of Intuition in Decision Making 349
Road Map to Ethical Decision Making: A Decision
Tree 352
Group Decision Making 354
Group Involvement in Decision Making 354
Advantages and Disadvantages of Group-Aided
Decision Making 355
Group Problem-Solving Techniques 357
Real World Real People CKE Restaurants
Combines Brainstorming, NGT, and Intuition to
Make Decisions about New Products 360

Real World Real People Employees at the

Blanchard Schaefer Agency Are Given the Time
and Space to Be Creative 365
Summary of Key Concepts

Key Terms 331

OB in Action Case Study A Trans-Atlantic Team
Learns the Ropes 331
Ethical Dilemma Thanks, But No Thanks! 332
Web Resources

Real World Real People Decision-Making Biases

Affect the Misdiagnosis ofMedical Conditions 343

Creativity 361
Definition and Individual Characteristics Associated
with Creativity 361
The Steps or Stages of Creativity 363
Practical Recommendations for Increasing Creativity 364

Real World Real People Team Building: Turning

Managers into Business Maestros 328
Leading Teams 330
Summary of Key Concepts

xxix

365

Key Terms 366

OB in Action Case Study Ford's CEO Alan Mulally
Adopts a New Approach to Decision Making 367
Ethical Dilemma Should Hospitals Be Allowed to
Use Credit Scores in Determining What Type of Care
Patients Receive? 368
Web Resources

369

Chapter Thirteen
Managing Conflict and Negotiating

370

Conflict: A Modern Perspective 372

The Language of Conflict: Metaphors and
Meaning 373
A Conflict Continuum 374
Functional versus Dysfunctional Conflict 375
Why People Avoid Conflict 375

Contents

XXX

Real World Real People Lots ofFriendly Fighting

at Google 376
Antecedents of Conflict 376
Desired Conflict Outcomes 377

Interpersonal Communication 408

Assertiveness, Aggressiveness, and
Nonassertiveness 408
Nonverbal Communication 409

Types of Conflict 377

Personality Conflict 377
Intergroup Conflict 380
Cross-Cultural Conflict 381

Real World Real People Reading the Nonverbal

Signs of a Possible Layoff 410
Active Listening 412
Women and Men Communicate Differently 414

Managing Conflict 383

Stimulating Functional Conflict

Organizational Communication 416

Formal Communication Channels: Up, Down,
Horizontal, and External 417
Informal Communication Channels 418

383

Real World Real People How Tow Mows Down

Bad Ideas 386
Alternative Styles for Handling Dysfunctional
Conflict 386
Real World Real People Let's Go Play Some
Golf 387
Third-Party Interventions 388
Practical Lessons from Conflict Research 390
Negotiation

How Digital Communication Is Impacting

Organizational Behavior 423

391

Real World Real People You Won't Get a Better

Price If You Don't Ask 392
Two Basic Types of Negotiation 392
Ethical Pitfalls in Negotiation 393
Practical Lessons from Negotiation Research 394

395

Web Resources

433

433

Chapter Fifteen
Influence, Empowerment, and Politics

398

434

Real World Real People PepsiCo's CEOIndra

Part Four
Organizational Processes 399
Chapter Fourteen
Communicating in the Digital Age

431

Key Terms 432

OB in Action Case Study Go Ahead, Use
Facebook 432
Ethical Dilemma We Know Where You Are

Key Terms 396

OB in Action Case Study Selina Lo Sees the
Light 397
Ethical Dilemma Break It Up! 398
Web Resources

Real World Real People Global E-Mentoring at

IBM 424
Strategic Concerns: Security and Privacy 424
Here Comes the Huge Internet Generation 425
The Two Faces of Telecommuting/Teleworking 427
Dealing with Unintended Consequences of the Digital
Age 428
Summary of Key Concepts

Conflict Management and Negotiation:

A Contingency Approach 395
Summary of Key Concepts

Real World Real People Surgical Team

Communication Is a Life-or-Death Matter 419
Choosing Media: A Contingency Perspective 420

Nooyi Is a Master ofInfluence

Organizational Influence Tactics 437

Nine Generic Influence Tactics 437
Three Possible Influence Outcomes 438
Practical Research Insights 439

400

Basic Dimensions of the Communication

Process 402
Perceptual Process Model of Communication
Barriers to Effective Communication 404

43 7

Social Power 440

Dimensions of Power
402

441

Real World Real People Get Healthy. That's an

Order! 443

Contents
Research Insights about Social Power 443
Using Power Responsibly and Ethically 444

Real World Real People Carol Bartz Uses TaskMotivated Leadership to Turn around Yahoo 479
Path-Goal Theory 480
Applying Situational Theories 483

Empowerment: From Power Sharing to Power

Distribution 445
A Matter of Degree 446
Participative Management 446

The Full-Range Model of Leadership: From

Laissez-Faire to Transformational Leadership 484
How Does Transformational Leadership Transform
Followers? 486
Research and Managerial Implications 487

Real World Real People Power to the People at

Cisco Systems 447
Delegation 448
Empowerment: The Research Record and Practical
Advice 450
Organizational Politics and Impression
Management 451
Definition and Domain of Organizational Politics
Political Tactics 454
Impression Management 455

Real World Real People Steve Harrison Uses

Business Decencies to Exhibit Individualized
Consideration 488

452

Real World Real People "It's Hard to Look Smart

with Bad Numbers" 458
Research Evidence on Organizational Politics and
Impression Management 459
Managing Organizational Politics 460
Summary of Key Concepts

461

Key Terms 462

OB in Action Case Study Beyond Flextime:
Trashing the Workweek 462
Ethical Dilemma You Say You Never Lie? That's
Probably a Lie! 463
Web Resources

Additional Perspectives on Leadership 489

The Leader-Member Exchange (LMX) Model
of Leadership 489
Shared Leadership 491
Servant-Leadership 492
The Role of Followers in the Leadership Process

494

Real World Real People Jack and Suzy Welch Identify

What Followers Can Expectfrom Leaders 495
Summary of Key Concepts

496

Key Terms 497

OB in Action Case Study Indra Nooyi Uses the Full
Range ofLeadership 498
Ethical Dilemma Should You Cover for a Laid-Off
Friend? 499
Web Resources

499

Learning Module C: Additional Leadership

Models (Web)

463

Chapter Sixteen
Leadership 464
What Does Leadership Involve?
Leadership Defined 466
Approaches to Leadership 467
Leading versus Managing 469

Chapter Seventeen
Organizational Design, Effectiveness, and
Innovation 500

466

Trait and Behavioral Theories of Leadership

470

Real World Real People AlliedBarton Security

Services's Leadership Development Produces Positive
Results 471
Trait Theory 471
Behavioral Styles Theory 475
Situational Theories 477
Fiedler's Contingency Model

XXXI

477

Organizations: Definition and Perspectives

What Is an Organization? 502
Organization Charts 503

502

Real World Real People Companies Have

Different Views about the Optimum Span of
Control 505
An Open-System Perspective of Organizations 505
Learning Organizations 506
Organization Design in a Changing World 507
Traditional Designs 507
Focus on Collaboration: Horizontal Design 509

Contents

XXXII

Designs That Open Boundaries between

Organizations 510

Models and Dynamics of Planned Change 538

Types of Change 539
Lewin's Change Model 540
A Systems Model of Change 541
Kotter's Eight Steps for Leading Organizational
Change 544
Creating Change through Organization Development 545

The Contingency Approach to Designing

Organizations 511
Real World Real People Toyota Changes Its
Organizational Structure in Response to a Plunge
in Sales 512
Mechanistic versus Organic Organizations 512
Getting the Right Fit

Real World Real People MasterCard Implements

Kotter's Model 546

515

Understanding and Managing Resistance to

Change 548
Causes of Resistance to Change 549
Alternative Strategies for Overcoming Resistance to
Change 552

Organizational Effectiveness (and the Threat of

Decline) 517
Generic Organizational-Effectiveness Criteria 517
Multiple Effectiveness Criteria: Some Practical
Guidelines 520
The Ever-Present Threat of Organizational
Decline 521
Organizational Innovation 523
Myths about Innovation 523

Dynamics of Stress 554

Defining Stress 555
A Model of Occupational Stress 555
Moderators of Occupational Stress 558
Stress-Reduction Techniques 562

Real World Real People Zara Spends Decades to

Innovate Its Supply Chain 524
A Model of Innovation 525

Real World Real People The Recession Results

in Increased Demand for Employee Assistance
Programs (EAPs) 563

Summary of Key Concepts

Summary of Key Concepts

528

Key Terms 529

OB in Action Case Study Irdeto Holdings BV
Changes Its Organizational Structure 529
Ethical Dilemma Has Electronic Monitoring Gone
Too Far? 530
Web Resources

531

Chapter Eighteen
Managing Change and Stress

Key Terms 565

OB in Action Case Study Wyeth Implements Major
Organizational Change 566
Ethical Dilemma Is There an Ethical Way to
Implement Downsizing without Hurting Your Best
Employees? 567
Web Resources

532

Forces of Change 534

External Forces 535
Real World Real People Companies Are
Asking Shareholders for Input about Executive
Compensation 537
Internal Forces 538

564

567

Learning Module D: Research Methods in

OB (Web)
Photo Credits
Endnotes

ENO

Glossary

Gl

Index

II

PCO