intercultural communication at work.

 After reading Chapters 3 and 4 in your text and the additional resources in Week 2 Course Documents, share an experience that you have had with intercultural communication at work. What cultures were involved? Was there conflict? If so, what was it about? Were there communication difficulties? What role did perception and attribution play in your encounter? How could the situation have been improved? What were the most interesting and helpful aspects you read about in either our text and/or in the additional resources this week in terms of managing diversity?

The initial post must be between 250-300 words in length and is due by 11:59PM EST on Thursday. At least two replies to other students are due by Sunday at 11:59PM EST. Responding to at least two other students is a requirement; posts must be submitted on time and each peer reply per question must be between 150-200 words in length. 

Angelo Kinicki
Behavior
Organizational
A Practical, Problem-Solving Approach
3e

Angelo Kinicki
Arizona State University
Kent State University
Organizational
Behavior
A Practical, Problem-Solving Approach
Third Edition

ORGANIZATIONAL BEHAVIOR: A PRACTICAL, PROBLEM-SOLVING APPROACH, THIRD EDITION
Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2021 by McGraw-Hill
Education. All rights reserved. Printed in the United States of America. Previous editions © 2018 and 2016. No
part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or
retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in
any network or other electronic storage or transmission, or broadcast for distance learning.
Some ancillaries, including electronic and print components, may not be available to customers outside the
United States.
This book is printed on acid-free paper.
1 2 3 4 5 6 7 8 9 LWI 24 23 22 21 20
ISBN 978-1-260-07507-6 (bound edition)
MHID 1-260-07507-9 (bound edition)
ISBN 978-1-260-51625-8 (loose-leaf edition)
MHID 1-260-51625-3 (loose-leaf edition)
Executive Portfolio Manager: Michael Ablassmeir
Lead Product Developer: Kelly Delso
Product Developer: Anne Ehrenworth
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Cover Image: © malerapaso/Getty Images
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The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does
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mheducation.com/highered

DEDICATION
To the thousands of students I encountered during my career. Thank you for making
me a better teacher and writer.
— Angelo

iv
ab
ou
t t
he
a
ut
ho
r nizational performance. Angelo has published over 95 articles in a variety of academic journals
and proceedings and is co-author of eight text-
books (32 including revisions) that are used by
hundreds of universities around the world.
Several of his books have been translated into
multiple languages, and two of his books were
awarded revisions of the year by McGraw-Hill.
Angelo also was identified as being among the
top 100 most influential (top .6%) Organizational
Behavior authors in 2018 out of a total of 16,289
academics.
Angelo is a busy international consultant and
is a principal at Kinicki and Associates, Inc., a
management consulting firm that works with top
management teams to create organizational
change aimed at increasing organizational effec-
tiveness and profitability. He has worked with
many Fortune 500 firms as well as numerous
entrepreneurial organizations in diverse indus-
tries. His expertise includes facilitating strategic/
operational planning sessions, diagnosing the
causes of organizational and work-unit problems,
conducting organizational culture interventions,
implementing performance management sys-
tems, designing and implementing performance
appraisal systems, developing and administering
surveys to assess employee attitudes, and lead-
ing management/executive education programs.
He developed a 3600 leadership feedback
instrument called the Performance Management
Leadership Survey (PMLS) that is used by com-
panies throughout the world.
Angelo and his wife of 37 years, Joyce, have
enjoyed living in the beautiful Arizona desert for
36 years. They are both natives of Cleveland,
Ohio. They enjoy traveling, hiking, and spending
time in the White Mountains with Gracie, their
adorable golden retriever. Angelo also has a pas-
sion for golfing.
Angelo Kinicki is an emeritus professor of
management and held the Weatherup/Overby
Chair in Leadership from 2005 to 2015 at the
W.P. Carey School of Business at Arizona State
University. He joined the faculty in 1982, the
year he received his doctorate in business
administration from Kent State University. He
was inducted into the W.P. Carey Faculty Hall
of Fame in 2016. Angelo currently is the Dean’s
Scholar in Residence at Kent State University.
He is teaching in the MBA program and serves
on the Dean’s National Advisory Board.
Angelo is the recipient of six teaching awards
from Arizona State University, where he taught in
its nationally ranked MBA and PhD programs. He
also received several research awards and was
selected to serve on the editorial review boards
for four scholarly journals. His current research
interests focus on the dynamic relationships
among leadership; organizational culture; organi-
zational change; and individual, group, and orga-
Courtesy of Angelo Kinicki

v
ne
w
to
th
e
th
ird
e
di
tio
nwe have included a variety of new exercises to our already robust Connect offering:• Problem-Solving Application Case Analyses:
All problem-solving application mini-cases
and end-of-chapter cases are now assignable
as case analyses in Connect. These exercises
give students the opportunity to analyze a
situation and to apply the 3-Step Problem-
Solving Approach. Student knowledge and
proficiency are assessed using high-level
multiple-choice questions that focus on both
the problem-solving approach and on the
key topics of each chapter.
• Application-Based Activities: Students can
gain valuable practice using problem-
solving skills to apply their knowledge to
realistic scenarios. Included in this edition
are two types of Application-Based Activities:
Role-Playing mini-simulations that allow
students to make decisions and see, in real
time, the impact of those decisions; and
Self-Assessments, which are research-based
surveys that students can take to gain fur-
ther introspection into how organizational
behavioral concepts apply to them.
• Cumulative Case: This capstone activity
provides students the opportunity to apply
the 3-Step Problem-Solving Approach on an
actual situation affecting a specific firm
(Tesla). Because the case examines issues at
the individual, group, and organizational
levels of analysis at Tesla, it can be used in
parts or as a comprehensive assignment or
exam. All told, this activity presents stu-
dents with a rich and practical example to
apply their OB knowledge and problem-
solving skills.
• iSeeIt Videos: Brief, contemporary intro-
ductions to key course concepts that often
perplex students, this series will enhance
your student-centered instruction by offer-
ing your students dynamic illustrations that
guide them through the basics of core OB
concepts such as motivation, leadership,
socialization, and more.
• Manager’s Hot Seat Videos: These vignettes
allow students to assume the role of a man-
ager as they immerse themselves in real-life
situations. Students see how managers deal
with employees and complex issues, and use
critical-thinking skills in defining their
approach and course of action–while
learning from the manager’s mistakes.
We are pleased to share these
exciting updates and new additions
to the third edition of
Organizational Behavior!
Features
In this new edition, we have better integrated
the 3-Step Problem-Solving Approach through-
out, and clarified its relationship to the Orga-
nizing Framework for Understanding and
Applying OB. In addition:
• Winning at Work boxes at the beginning of
every chapter offer career-readiness guid-
ance for students on a variety of timely,
pertinent topics.
• OB in Action boxes illustrate OB concepts
or theories in action in the real world,
featuring well-known companies and
individuals.
• Applying OB boxes offer students
“how-to” guidance on applying OB
knowledge in their lives. The importance
of career readiness is stressed in many
of these boxes throughout the book,
indicated with a “Career Readiness”
label.
• Problem-Solving Application boxes provide a
minicase for students to analyze, using the
3-Step Problem-Solving Approach.
• Takeaways for Me and Takeaways for
Managers conclude each chapter,
explaining in direct terms practical appli-
cations of the chapter content from the
student’s perspective as an employee and
a manager.
• Problem-Solving Application Cases at the
end of each chapter provide a complex and
current case with one or more problems
that pertain to concepts discussed in the
chapter.
• Legal/Ethical Challenges provide a conclud-
ing exercise in each chapter and ask stu-
dents to choose from several courses of
action or invent their own to resolve a
business situation involving ethics
at work.
Connect
In our continuing efforts to help students move
from comprehension to application, and to
ensure they see the personal relevance of OB,

vi NEW TO THE THIRD EDITION
Chapters
In each chapter we have refreshed examples,
research, figures, tables, statistics, and photos,
as well as streamlined design to ease navigation
and improve readability. We have also largely
replaced the topics in such popular features as
Winning at Work, Legal/Ethical Challenges,
Problem-Solving Application mini cases, and
Problem-Solving Application Cases. New in
this edition, each chapter concludes with a sec-
tion entitled “Making Connections,” in which
we provide a list of specific applications of
chapter content for students and managers.
Beyond these valuable changes, the following
outlines some of the more notable changes by
chapter.
CHAPTER 1
• New content on the implications of OB for
students’ jobs and careers.
• Expanded and enhanced section on ethics,
including expanded treatment on the preva-
lence of cheating and other forms of unethi-
cal conduct at school and work; revised and
further developed section on ethical dilem-
mas and whistleblowers; revised and
enhanced content on the importance of soft
versus hard skills; expanded explanation of
the importance of self-awareness for personal
development and job and career success.
• Updated survey results outlining skills most
sought by employers.
• New Winning at Work feature provides
insight and guidance on how to deal with
challenges in the hiring process, including
the growing role of artificial intelligence
and how to effectively get past these virtual
gatekeepers.
• New Applying OB feature on how self-
awareness can help one build a fulfilling career.
• Updated and refined the 3-Step Approach
to Solving Problems Using OB.
CHAPTER 2
• New content on the factors that shape the
values of Generation Z; increasing
employee commitment, with best practices
used by Hilton, Salesforce, and Cisco.
• New examples clarify content about
Schwartz’s value theory and explain
cognitive dissonance.
• Updated statistics on employee engagement
around the world; new data on employee
satisfaction in the U.S.; new statistics on
telecommuting; new research on accounting/
financial performance and customer
service/satisfaction as outcomes of job
satisfaction.
• New Winning at Work feature on creating
your own sense of employee engagement.
• New Problem-Solving Application features
on McDonald’s workers protesting sexual
harassment at work; Netflix’s approach to
sexual harassment in the workplace.
• New OB in Action feature on how compa-
nies foster employee engagement.
• New Applying OB features on ways to
implement telecommuting for employees;
using job satisfaction to reduce employee
turnover.
• New end-of-chapter Problem-Solving
Application Case on Walmart’s values
under scrutiny.
CHAPTER 3
• New section on the dark side of personal-
ity, the dark triad: narcissism, psychopathy,
and Machiavellianism; new coverage of
emotional intelligence, including the most
recent research and ways in which to
develop one’s EI; new content on the
potential and actual success of introverts in
the workplace; new content on how to
manage emotions during the job search
process.
• Expanded section on brain training, using
current research findings and applications;
streamlined treatment of multiple intelli-
gences with new, compelling examples;
updated and streamlined material related to
core self-evaluations.
• Updated research and practical implications
of intelligences, linking Big 5 personality
dimensions to performance.
• New Winning at Work feature illustrating
the career implications of OB, with
guidance on which interview questions
students should be prepared to answer
and ask.
• New Applying OB features on what to look
for in a manager; managing emotions
during the job search.
• New OB in Action features on intelligence
testing; one of the richest self-made women
in America (who also epitomizes self-
efficacy).

vii
research and examples on job design, job
crafting, and i-deals.
• New Winning at Work feature on how to
negotiate for a pay raise at work.
• New Problem-Solving Applications about
employee benefits at Walmart; symphony
orchestra members going on strike.
• New OB in Action feature about job swap-
ping and job rotation opportunities.
• New end-of-chapter Problem-Solving Appli-
cation Case on why Amazon workers are
not feeling motivated.
• New Legal/Ethical Challenge about
whether Sears executives should receive
bonuses while taking the company through
bankruptcy.
CHAPTER 6
• New content on the primary outputs and
functions of performance management;
applied goalsetting to jobs and careers;
the major reasons performance manage-
ment is criticized; the growing role of
technology in performance management;
contemporary performance management,
highlighting that it is now continual and
includes more coaching and ongoing
feedback; how to improve performance
monitoring.
• Revised Winning at Work feature on best
practices for productivity.
• New Applying OB features on goal-setting;
responding to negative feedback; effective
coaching.
• New OB in Action features on ID
checks; monitoring for performance; com-
pensation.
• New Problem-Solving Application on incen-
tivizing teachers in one underperforming
school district.
• New end-of-chapter Problem-Solving
Application Case on the consequences
resulting from Wells Fargo’s use of
incentives.
• New Legal/Ethical Challenge on the
practice of employers’ asking about current
salary.
CHAPTER 7
• New content on positive and negative
deviance; how students can increase their
• New Problem-Solving Application on
Uber’s former CEO, Travis Kalanick.
• New end-of-chapter Problem-Solving
Application Case on the fall of John
Schnatter, founder of Papa John’s Pizza.
• New Legal/Ethical Challenge on drug
testing with the recent legalization of
marijuana in some states.
CHAPTER 4
• New, expanded discussion and illustration
of the four stages of social perception;
new content on diversity, including new
discussion of assumptions about diversity
and new examples about the use of quotas
when it comes to hiring practices; new
example to elaborate on the self-serving
bias.
• New research on how a person’s appear-
ance affects our perception and their ability
to get hired; updated research on stereo-
types; new results of gender research;
updated trends and statistics related to
diversity, including the topic of pay equity
for men and women and research on unwel-
coming workplace environments.
• New Applying OB features on developing
cultural awareness to enhance perception;
the best companies for Millennial workers.
• New OB in Action features on the use of vir-
tual technologies for job interviews and recruit-
ment; how U.S. companies are using product
design to reach a diverse customer base.
• New Problem-Solving Application about
firefighters suing for age discrimination.
• Updated end-of-chapter Problem-Solving
Application Case on the diversity profile of
technology companies.
• New Legal/Ethical Challenge about patient
requests versus employees’ civil rights.
CHAPTER 5
• New content on equity sensitivity.
• New illustrations of extrinsic and intrinsic
motivation; new examples to illustrate key
theories including Maslow’s theory, self-
determination theory, and equity/justice
theory; new examples to illustrate the
concept of goal setting and the application
of the job characteristics model.
• New research on employees’ opinions about
performance feedback and pay; updated
NEW TO THE THIRD EDITION

viii
• Expanded and refined content on team
effectiveness, including new material on
the characteristics of high performing
teams and how to use conflict to improve
teamwork.
• Revised and expanded research and appli-
cation related to social-loafing (how to
prevent and overcome it); updated
research and content on team adaptive
capacity.
• New Applying OB features on cultivating
cohesiveness to improve the function of
groups and teams; the benefits of
microinternships for both employers
and students.
• New OB in Action features on how
T-Mobile has changed their customer
service approach by working in teams; how
conflict and tension can be the key to better
teams.
• New end-of-chapter Problem-Solving
Application Case on the predicaments
that Boeing faces with its 737 Max
airliner.
CHAPTER 9
• New content on media richness; social
listening; generational differences regarding
the role of digital devices and communica-
tion expectations and norms; social media
and OB.
• New subsection on phubbing (phone
snubbing) and FOMO (fear of losing out);
new discussion on nondefensive communi-
cation.
• New research on media richness, managers’
use of empathy; tips on managing e-mail;
statistics on social media and OB.
• New OB in Action features on communica-
tion transparency at a skin-care company;
how empathy is good for business; crowd-
sourcing success stories at Lego and Frito-
Lay.
• New Applying OB feature on how to ace a
video job interview.
• New end-of-chapter Problem-Solving
Application Case about United
Airlines’ turbulent communications
strategy.
• New Legal/Ethical Challenge on whether
social media posts impact the cost of life
insurance premiums.
flourishing at school; turning rejection in the
job search process into positive motivation.
• Updated and expanded section on doing
well and doing good, including three quali-
fying criteria and further development of
how this occurs across levels of OB
( individual, group, and organizational);
expanded material on how to insert more
positivity in one’s work; organizational cli-
mate; revised material on the history and
current role of positivity in OB; prosocial
behaviors.
• Refined, updated, and expanded research,
applications, and benefits of mindfulness at
work; updated research and applications of
resilience, optimism, and signature
strengths at work.
• New Winning at Work feature on boosting
performance with productivity.
• New Applying OB features on how managing
internal responses can improve performance;
boosting positivity with a fun work environ-
ment; fostering positive candidate experi-
ences during job interviews.
• New OB in Action features on socially-
responsible investing; mindfulness at major
healthcare, biotech, and industrial compa-
nies; employee wellness via resistance
training at a major health system; how one
fast-casual health food business fosters posi-
tive culture
• New Problem-Solving Application on
Amazon’s acquisition of Whole Foods and
reckoning of the two companies’ values.
• New end-of-chapter Problem-Solving
Application Case on how aggressive mar-
keting created an opioid epidemic.
• New Legal/Ethical Challenge on hiring
those with criminal pasts.
CHAPTER 8
• New section differentiating groups
and teams using three characteristics:
dependence, accountability, and time.
• Revised and updated content on formal and
informal groups and their respective func-
tions; group and team norms; types of
teams, especially related to virtual team
challenges and solutions; updated and
expanded content on trust: what it is, why it
is important, and how to repair it when
damaged.
NEW TO THE THIRD EDITION

ix
new research on the importance of
creativity and curiosity within
organizations.
• New Winning at Work feature about how to
practice critical thinking skills for decision
making.
• New OB in Action features on improving an
airport terminal under bounded rationality;
how big data helps advance the health care
industry; how shaking up your routine may
spark creativity.
• New Problem-Solving Application on how
cognitive bias was partly to blame for
California’s devastating wildfires.
• New end-of-chapter Problem-Solving
Application Case on Airbus’s decision
to cease production of its A380
airliner.
• New Legal/Ethical Challenge on whether
college students should be expelled if
their parents cheated to get them into
school.
CHAPTER 12
• Revised content on common influence
tactics, including current and compelling
examples of students, #MeToo, and employ-
ees; political tactics, highlighting the
increasing activism by employees, students,
and other groups; political behavior, uncer-
tainty, performance, and change; the tactic
of blame and levels of political action;
apologies—when and how to use them
effectively.
• Updated and expanded research on the five
bases of power, with a focus on negative
legitimate and referent power.
• New Applying OB features on social media
influencers; etiquette in the hiring process;
body art in the workplace.
• New OB in Action features on giving tax
breaks and other incentives to billion-dollar
companies; employee activism; the effects
of student activism on companies and
corporations.
• New end-of-chapter Problem-Solving
Application Case on Nike and the MeToo
Movement.
• New Legal/Ethical Challenge on companies
who impose their leaders’ values on
employees.
CHAPTER 10
• New section on harassment—what it is and
how to prevent it at work.
• New content on functional versus dysfunc-
tional conflict: causes and outcomes;
intergroup conflict material; creating the
climate for psychological safety; framing
negotiation as a skill, task, or even a game—
with the goal of improving your attitude
related to negotiation and thus improving
the outcomes.
• Revised and updated content related to
conflict avoidance, including reasons why
people avoid conflict, how to avoid avoiding
conflict, and the desired outcomes of
conflict management.
• Expanded and updated sections related to
work-life conflict, with a new focus on har-
mony or integration of life’s; modern con-
flict at work; civility at work, including its
forms, prevalence, and costs; programming
functional conflict and conflict handling
styles; ethics and negotiations.
• New Applying OB features on how to
explain your departure from one job while
interviewing for another; psychological
safety at Google; how to ask for a larger
s alary or a raise.
• New OB in Action features on dealing with
conflict; the battle between two unions
involved in the creation of shows and
movies.
• New Problem-Solving Application on the
Fair Food Program.
• New Problem-Solving Application Case on
Facebook’s struggles with protection of
data and privacy.
• New Legal/Ethical Challenge on arbitration
versus litigation.
CHAPTER 11
• New section on artificial intelligence and its
increasing use in decision making.
• Expanded discussion of Kahneman’s two
ways of thinking; updated information on
data analytic jobs and majors; new exam-
ples for the four types of decision-making
styles; new examples of bounded rationality,
intuition, big data, analytical decision mak-
ing, and creativity.
• New data on use of heuristics by physi-
cians; new statistics about use of big data;
NEW TO THE THIRD EDITION

x
• New Applying OB feature about key strate-
gies for cultivating a network and mentor-
ing relationship.
• New end-of-chapter Problem-Solving
Application Case about the culture clashes
at Ford Motor Company.
CHAPTER 15
• New introductory section and illustration
that provide an overview of how organiza-
tional structure and innovation impact
organizational effectiveness.
• Shifted discussion of assessing organiza-
tional effectiveness to the end of the
chapter to provide a clearer link between
implementing organizational design
and evaluating its effectiveness using
various metrics, including the Balanced
Scorecard.
• Updated examples on learning organiza-
tions; the seven types of organizational
structure; innovation in organizations.
• New research on the effects of open-office
design on individual, group, and organiza-
tional outcomes; updated research related
to learning organizations and innovation in
organizations.
• New Problem-Solving Applications
about gig workers’ growing influence in the
labor market; AMD and its struggles to
innovate.
• New end-of-chapter Problem-Solving
Application Case about one major book-
seller and the challenges it faces to stay in
business.
• Updated Legal/Ethical Challenge about
universities’ tax-exempt status and the
response from their local communities.
CHAPTER 16
• New section on confronting and effectively
overcoming failures at work.
• New material contrasting fatigue versus
tiredness and consequences at work; the
role and characteristics of change agents;
tips on overcoming resistance to change.
• Revised and expanded content on forces for
change; updated material on using missions
to motivate change; revised content on
resistance to change—its causes and how to
overcome it; revised content on stress at
work, including statistics, causes, and costs.
CHAPTER 13
• New section on abusive supervision and
what strategies organizations can imple-
ment to eliminate such behavior.
• New content on the leadership model devel-
oped by Kouzes and Posner; the four ways
of creating psychological empowerment;
the four behaviors demonstrated by trans-
formational leaders.
• New statistics on why leadership is so
important in today’s organizations; new
research on leadership traits and task and
relational leadership; new research about
leader- member exchange model of
leadership.
• New OB in Action features on how one
university used task leadership to help
reclaim the national college football
championship; abusive leadership
at a local pharmacy.
• New Problem-Solving Application on
Barnes & Noble’s search for a new CEO.
• New end-of-chapter Problem-Solving
Application Case on Elon Musk and his
leadership behavior.
• New Legal/Ethical Challenge on whether
store managers should force employees
to pierce childrens’ ears against their
wishes.
CHAPTER 14
• Expanded discussion of sustainability as a
key driver of organizational success.
• New examples for the three levels of organi-
zational culture; the four cultural types in
the competing values framework; the
12 mechanisms to change organizational
culture; the three stages of socialization; the
career and psychosocial functions of
mentoring; how human and social capital
enhance the benefits of mentoring.
• Updated research for the three stages of
socialization; new illustrations on the
importance of organizational culture; new
examples of the career and psychosocial
functions of mentoring.
• New OB in Action feature about compa-
nies that demonstrate sustainability
leadership.
• New Problem-Solving Application about
Sprouts Farmers Market and its organiza-
tional culture.
NEW TO THE THIRD EDITION

xi
• Streamlined and updated research and
examples related to common models
of change; forces for change; managing
stress.
• New Winning at Work feature on
relocating.
• New OB in Action features on turnover
among CEOs; improving lives with shoes.
• New Applying OB features on answering
behavioral interview questions; how to rant
productively.
• New Problem-Solving Application on the
AT&T/Time Warner merger.
• New end-of-chapter Problem-Solving
Application Case on the reinvention of
Toys R Us.
NEW TO THE THIRD EDITION

xii
“My students have embraced
the problem-solving approach
. . . and are excelling as a
result. They tell me in their
feedback that they ‘get it.’ To
me, that proves success and
that learning has taken place.”
David D. Mull
—Columbia College of Missouri
• “I want a good job, one that I like and is
fulfilling. How do I know which job and
company are a good fit for me?”
• “I know that this job and company provide
good opportunities for me, but what can I do to
be sure I actually realize these opportunities?”
• “I can’t stand my job, but I need the money.
Should I talk to my boss or just quit?”
• “I am taking a class with 50 percent of the
grade due to teamwork. My team has four
members and two of us are doing all the
work. I’ve been talking to the team, but the
two members still aren’t doing their share. I
am at a loss for what to do.”
• “How do I negotiate a salary and benefits for
my new job, or a raise for the one I have?”
Each of these scenarios presents a problem. We
all are faced with problems every day, and our
ability to solve problems can set us apart from
others in our jobs and careers. In fact, surveys
consistently show that problem solving is one of
the skills most valued by employers. For this rea-
son, we designed Organizational Behavior, 3e, to
help students become more effective problem
solvers. Students who are effective problem solvers
today become valued leaders tomorrow.
The third edition of Organizational Behavior
relies on three key strategies to help students
use OB knowledge to solve problems:
• Consistent 3-Step Problem-Solving Approach.
• Applied, practical features.
• User-centric design.
3-Step Problem-Solving Approach
Given problem solving is one of the skills most
sought by employers, we help students develop
instead of hone this skill. We teach them to use a
3-Step Problem-Solving Approach—(1) define the
problem, (2) identify the causes, and (3) recom-
mend a solution. This approach is introduced in
Chapter One and used multiple times in each
subsequent chapter. To complement the 3-Step
Approach, we also developed the Organizing
Framework for Understanding and Applying OB.
This framework is used in two ways. First, it pro-
vides students a means for organizing OB con-
cepts into three categories (inputs, processes,
and outcomes) as they learn them. This facili-
tates student learning and shows how concepts
relate to each other. Second, it is an important
and complementary tool for problem solving.
Problems are often defined in terms of out-
comes in the Organizing Framework, and the
causes are commonly found in the inputs and
processes elements. Students use this framework
in every chapter to solve problems confronted by
real organizations and employees.
We provide many opportunities for students to
practice using the 3-Step Problem-Solving
Approach. Problem-Solving Application mini
cases are inserted throughout each chapter. These
provide numerous opportunities for students to
apply their OB knowledge and practice their prob-
lem solving skills to real companies and people.
The longer Problem-Solving Application Case at
the end of each chapter presents more complex
and current business cases containing one or
more problems that illustrate OB concepts
included in a particular chapter. A version of the
Organizing Framework is presented in each chap-
ter and is populated with relevant concepts from
that chapter, which students use to define and
solve problems presented in the various features.
This capstone Cumulative Case activity provides
students the opportunity to apply the 3-Step Prob-
lem-Solving Approach on an actual situation
affecting a specific firm (Tesla) in Connect.
We carry the 3-Step Problem-Solving
Approach into Connect, McGraw-Hill’s
market-leading digital platform, and provide
students with numerous opportunities to
observe how different decisions can lead to dif-
ferent outcomes. We also offer new critical-
thinking application exercises tied to the
Problem-Solving Application boxes and
Problem-Solving Application Cases, giving stu-
dents additional practice with applying the
3-Step Approach. These activities are a
pr
ef
ac
e

xiii
We also present content in digestible chunks
of text, with frequent opportunities to engage
with or reflect on the material. The Winning at
Work feature opens each chapter with a list of
practical tips related to a highly relevant topic
for work and/or school, such as negotiating a sal-
ary for a new job or a pay raise, or how to man-
age meetings more effectively. Self-Assessments
in Connect allow students to evaluate personal
characteristics related to OB concepts, as well as
to reflect on their own characteristics and behav-
ior. What Did I Learn provides students with a
review of the chapter’s key concepts, an invita-
tion to answer important questions relating to
chapter content, and a summary of the Organiz-
ing Framework for a given chapter.
Connect gives instructors the foundations for
creating a course that fits their individual teach-
ing needs. The Teaching Resource Manual offers
a playbook for creating and delivering a discus-
sion-based learning environment in which stu-
dents practice and apply concepts in a more
active manner. The extensively revised Test Bank
offers greater opportunity to assess students on
OB concepts at a higher level, with essay and
scenario-based questions to engage students’
problem-solving skills. Finally, a comprehensive
set of PowerPoint slides provide guidance in
addressing key concepts.
Developing Effective Problem
Solvers Today, Valued Leaders
Tomorrow
Organizational Behavior, 3e, explicitly addresses
OB implications for students’ jobs and careers,
showing how OB provides them with the higher-
level soft skills employers seek, such as problem
solving, critical thinking, leadership, and deci-
sion making. We strongly believe that applying
OB theories and concepts provides tremendous
value to students’ lives today and throughout
their careers. The understanding and application
of OB enhances student effectiveness at school
and work, both today and tomorrow.
com bination of case analyses, video cases, and
click-and-drag exercises.
Applied, Practical Approach
The third edition repeatedly demonstrates the
practical value of OB concepts in solving real-
world problems in students’ professional and
personal lives. OB in Action boxes illustrate OB
concepts or theories in action in the real world,
featuring well-known companies. Applying OB
boxes offer students “how-to” guidance on
applying their knowledge in both their profes-
sional and personal lives. Appearing at the end
of each chapter are new Takeaway features that
explain to students the practical value of OB
concepts—one for their personal use now (Take-
aways for Me) and the other for managers
(Takeaways for Managers).
Legal/Ethical Challenges ask students to
choose from several proposed courses of action
or invent their own to resolve a business situa-
tion that falls into a gray area of ethics at work.
Connect provides a multitude of opportuni-
ties for active practice and application of con-
cepts learned during class or while completing
assigned reading. SmartBook is another key
component. This adaptive and data-driven read-
ing experience gives students ample opportu-
nity to develop mastery of key learning
objectives tied to core OB concepts, while also
providing instructors real-time snapshots of stu-
dent comprehension.
User-Centric Approach
It is important for us to offer users, whether stu-
dents or instructors, a tool that is easy to navi-
gate, easy to digest, and exceptionally practical.
We therefore have taken great care to create con-
tent, craft our writing, and include features that
focus on the needs and interests of the user. To
that end, Learning Objectives and “The Bigger
Picture” feature open the main sections of each
chapter and immediately place students in a
practical learning mode.
PREFACE
“(This) is a text with a
practical approach . . . Theory
is there, but explained in a
hands-on manner, which fits
well into the way I present the
course.”
Dr. Floyd Ormsbee
—Clarkson University
“Practical, student centered, highly relevant
to both students and employers needs. (It)
hits all of the most critical topics of OB in an
engaging and visually appealing way, and
includes a critical thinking approach that is
easy to learn and use.”
Jody Tolan
—University of Southern California Marshall School of Business

Make it simple,
make it affordable.

Connect makes it easy with seamless
integration using any of the major
Learning Management Systems—
Blackboard®, Canvas, and D2L, among
others—to let you organize your course
in one convenient location. Give your
students access to digital materials at
a discount with our inclusive access
program. Ask your McGraw-Hill
representative for more information.
Solutions for your
challenges.

A product isn’t a solution. Real
solutions are affordable, reliable,
and come with training and
ongoing support when you need it
and how you want it. Our Customer
Experience Group can also help
you troubleshoot tech problems—
although Connect’s 99% uptime
means you might not need to call
them. See for yourself at status.
mheducation.com
65%
Less Time
Grading
FOR INSTRUCTORS
®
Checkmark: Jobalou/Getty ImagesPadlock: Jobalou/Getty Images
Laptop: McGraw-Hill; Woman/dog: George Doyle/Getty Images
You’re in the driver’s seat.
Want to build your own course? No problem. Prefer to use our turnkey,
prebuilt course? Easy. Want to make changes throughout the semester?
Sure. And you’ll save time with Connect’s auto-grading too.
They’ll thank you for it.
Adaptive study resources like SmartBook® 2.0 help
your students be better prepared in less time. You
can transform your class time from dull definitions to
dynamic debates. Find out more about the powerful
personalized learning experience available in
SmartBook 2.0 at www.mheducation.com/highered/
connect/smartbook

No surprises.
The Connect Calendar and Reports tools keep you on track with the
work you need to get done and your assignment scores. Life gets busy;
Connect tools help you keep learning through it all.
Learning for everyone.
McGraw-Hill works directly with Accessibility Services
Departments and faculty to meet the learning needs
of all students. Please contact your Accessibility
Services office and ask them to email
accessibility@mheducation.com, or visit
www.mheducation.com/about/accessibility
for more information.
“I really liked this
app—it made it easy
to study when you
don’t have your text-
book in front of you.”
FOR STUDENTS
– Jordan Cunningham,
Eastern Washington University
Top: Jenner Images/Getty Images, Left: Hero Images/Getty Images, Right: Hero Images/Getty Images
Calendar: owattaphotos/Getty Images
Study anytime, anywhere.
Download the free ReadAnywhere app and access your
online eBook or SmartBook 2.0 assignments when it’s
convenient, even if you’re offline. And since the app
automatically syncs with your eBook and SmartBook 2.0
assignments in Connect, all of your work is available
every time you open it. Find out more at
www.mheducation.com/readanywhere
Effective, efficient studying.
Connect helps you be more productive with your study time and get better grades using tools
like SmartBook 2.0, which highlights key concepts and creates a personalized study plan.
Connect sets you up for success, so you walk into class with confidence and walk out with better
grades.

xvi PREFACE
Dr. Bill Carnes,
Metropolitan State University of Denver—College
of Business
Ileene Chernoff,
University of Phoenix
Donna Chlopak,
Montclair State University
Amanda L. Christensen,
University of Cincinnati
Dean Cleavenger,
University of Central Florida
Elizabeth Cooper
University of Rhode Island
Dana M. Cosby,
Western Kentucky University
Matthew Cronin,
George Mason University
Joe Daly,
Appalachian State University
Caitlin A. Demsky,
Oakland University
Diane Denslow,
University of North Florida
Dr. Anant Deshpande,
SUNY Empire State College
John DeSpagna,
Nassau Community College
Kristen DeTienne,
Brigham Young University
Ken Dunegan,
Cleveland State University
Steven M. Elias,
New Mexico State University
Aimee Ellis,
Ithaca College
W. Randy Evans,
University of Tennessee at Chattanooga
Michelle H. Feller,
Weber State University
Martin L. Fogelman,
SUNY Albany
Charla S. Fraley,
Columbus State Community College
John D. Fuehrer,
Baldwin Wallace University
Allison S. Gabriel,
University of Arizona
Jane Whitney Gibson,
Nova Southeastern University
Cynthia Gilliand,
University of Arizona
Acknowledgments
We could not have completed this product without
the help and support of a great number of people.
It all began with the vision of our director, Michael
Ablassmier. He assembled a fantastic team to help
create a truly unique product and pushed us to cre-
ate new and applied features valued by the market.
Among our first-rate team at McGraw-Hill, we
want to acknowledge key contributors: Senior
Product Developer Anne Ehrenworth’s assistance
was instrumental in structuring the editorial pro-
cess; Cate Rzasa, content developer, Debbie Clare,
Senior Marketing Manager, helped us implement
our vision for creative and proactive marketing;
Harvey Yep lead content project manager, and
Keri Johnson, senior content project manager, led
the core and Connect components through the
production process; Matt Diamond, designer, and
Debra Kubiak, design manager, worked with us to
streamline the design and come up with a creative
new cover concept; and Allison Marker, editorial
coordinator, provided tremendous support behind
the scenes.
We also want to thank Patrick Soleymani,
George Mason University, for his work on the
Teaching Resource Manual. Patrick also con-
tributed in many other ways to help us achieve
our vision. We are also grateful to Lara Hobson
for her work on the Test Bank, and to Jake
Heller for his work on the PowerPoints. Deep
gratitude goes to Ravi Shanmugam for his work
on Connect, and Ken Carson, Grove City
College, for all his work on researching and
developing the Self-Assessment feedback.
We would like to acknowledge the following
instructors for providing feedback to shape this
product. Special thanks goes to:
Tim Basadur,
Concordia University Chicago
James Bishop,
New Mexico State University—Las Cruces
B.D. Boardman,
University of Phoenix
Adeline Boomgaard,
University of Phoenix
Brenda D. Bradford,
Missouri Baptist University
Chris Bresnahan,
University of Southern California
Mark Burdsall,
University of Pittsburgh
E. Holly Buttner, PhD.,
University of North Carolina at Greensboro—Bryan
School of Business & Economics

xviiPREFACE
Katie Liljequist,
Brigham Young University
Gregory P. Lucht,
University of Phoenix
Douglas Mahony,
Lehigh University
Jennifer Malarski,
Metropolitan State University
Laura Martin,
Midwestern State University
J. J. Massey,
The University of Texas at Tyler
Merrill A. Mayper,
University of Phoenix
Douglas McCabe,
Georgetown University—McDonough School of Business
Lorianne D. Mitchell,
East Tennessee State University
Dan Morrell,
Middle Tennessee State University
Paula C. Morrow,
Iowa State University
Robert Muliero,
University of Phoenix
David D. Mull,
Columbia College of Missouri
Daniel F. Nehring,
Morehead State University
Jeananne Nicholls,
Slippery Rock University
Dr. Floyd Ormsbee,
Clarkson University
Bradley P. Owens,
State University of New York at Buffalo
John Pepper,
The University of Kansas
Jeff Peterson,
Utah Valley State College
Don Powell,
University of North Texas
Gregory R. Quinet,
Southern Polytechnic State University
Samuel Rabinowitz,
Rutgers University—Camden
Jude A. Rathburn,
University of Wisconsin—Milwaukee
Alicia J. Revely,
Miami University
Herb Ricardo,
Indian River State College
Katherine Robberson,
Southern Illinois University—Edwardsville
Lydia Gilmore,
Columbus State Community College
Simona Giorgi,
Boston College
Early Godfrey,
Gardner Webb University
Roy Lynn Godkin,
Lamar University
Connie Golden,
Lakeland Community College
Nora Alicia González,
University of Phoenix
Dr. Deborah Good,
University of Pittsburgh
Christina Goodell,
Florida State College at Jacksonville
Meghan Griffin,
Daytona State College
Samuel Hazen,
Tarleton State University
Kim Hester,
Arkansas State University
Lara Hobson,
Western Michigan University
Wayne Hochwarter,
Florida State University
Madison Holloway,
Metropolitan State University of Denver
Brooks Holtom,
Georgetown University
Jenni Hunt,
Southern Illinois University—Edwardsville
Teresa Hutchinson,
University of Phoenix
Kendra Ingram,
Texas A&M University—Commerce
Hank Karp,
Hampton University
Stacey R. Kessler,
Montclair State University
Anthony J. Kos,
Youngstown State University
Michael Kosicek,
Indiana University of Pennsylvania
Christine L Krull,
IUPUI
Mika Tatum Kusar,
Fort Lewis College
Caroline Leffall,
Bellevue College
Fengru Li,
University of Montana Business School

xviii PREFACE
Patrick Soleymani,
George Mason University
Dan Spencer,
University of Kansas
Dr. Atul Teckchandani,
California State University—Fullerton
Mussie T. Tessema,
Winona State University
Linda Thiede Thomas,
Bellevue University
Jody Tolan,
University of Southern California—Marshall School
of Business
Mary L. Tucker,
Ohio University
Brian Usilaner,
University of Maryland—University College
Wellington Williams, Jr.,
University of Phoenix
Robert M. Wolter,
IUPUI School of Engineering and Technology
John G. Zappala,
Central Michigan University
Finally, I hope you enjoy this textbook. Best
wishes for happiness, health, and success!
Angelo Kinicki
Joe Rode,
Miami University—Oxford
Matt Rodgers,
The Ohio State University
Deborah Roebuck,
Kennesaw State University
Kristie Rogers,
University of Kansas
Hannah R. Rothstein,
CUNY Baruch College
Christopher Roussin,
Suffolk University
David Ruderman,
University of Colorado at Denver
Frances McKee Ryan,
University of Nevada—Reno
Gordon Schmidt,
Indiana Purdue University—Fort Wayne
Dr. Marina Sebastijanovic,
University of Houston
Holly Schroth,
University of California
Ravi Shanmugam,
University of Kansas
Richard G. Sims,
University of Phoenix
Kenneth Solano,
Northeastern University

xix
PART ONE Individual Behavior 1
1 Making OB Work for Me 2
2 Values and Attitudes 42
3 Individual Differences and
Emotions 76
4 Social Perception and
Managing Diversity 120
5 Foundations of Employee
Motivation 160
6 Performance
Management 198
7 Positive Organizational
Behavior 250
PART TWO Groups 295
8 Groups and Teams 296
9 Communication in The Digital
Age 336
10 Managing Conflict and
Negotiations 378
11 Decision Making and
Creativity 422
12 Power, Influence, and
Politics 464
13 Leadership Effectiveness 506
PART THREE Organizational
Processes 547
14 Organizational Culture,
Socialization, and
Mentoring 548
15 Organizational Design,
Effectiveness, and
Innovation 592
16 Managing Change and
Stress 636
br
ie
f c
on
te
nt
s

xx CONTENTS
co
nt
en
ts
1 MAKING OB WORK FOR ME
WINNING AT WORK 3
WHAT’S AHEAD IN THIS CHAPTER 3
1.1 Use Knowledge of OB to Enhance
Your Performance and Career 4
How OB Fits into My Curriculum and Influences
My Success 4
APPLYING OB: Self-Awareness Can Help You Build
a Fulfilling Career 6
SELF-ASSESSMENT 1.1: How Strong Is
My Motivation to Manage? 6
Employers Want Both Hard and Soft Skills 7
How OB Fits into My Career 8
APPLYING OB: How to Ace Your Next Interview 9
1.2 Right vs. Wrong—Ethics and My
Performance 11
Cheating 11
Ethical Lapses—Legality, Frequency, Causes, and
Solutions 13
OB IN ACTION: Wrong? Absolutely! Illegal?
Seemingly Not. 14
OB IN ACTION: The Whistle-Blower’s Dilemma 16
SELF-ASSESSMENT 1.2: Assessing My
Perspective on Ethics 20
1.3 OB and Problem Solving 21
A 3-Step Approach 21
Tools to Reinforce My Problem-Solving Skills 23
SELF-ASSESSMENT 1.3: Assessing Your
Problem-Solving Potential 23
1.4 Structure and Rigor in Solving
Problems 24
The Person–Situation Distinction 24
Three Levels of OB 26
Applying OB Concepts to Problem Solving 26
1.5 The Organizing Framework for
Understanding and Applying OB 27
A Basic Version of the Organizing Framework 27
APPLYING OB: Mars: The World We Want
Tomorrow 28
Using the Organizing Framework for Problem
Solving 29
Applied Approaches to Selecting a Solution 29
Basic Elements for Selecting an Effective Solution 30
1.6 Preview and Application of What
You Will Learn 31
The 3-Step Problem-Solving Approach 31
The Organizing Framework 31
PROBLEM-SOLVING APPLICATION: Technology:
A Situation Factor That Affects Your
Performance 33
Hypothetical Problem-Solving Scenario 34
1.7 Making the Connection: What Is OB
and Why Is It Important? 36
Our Wishes for You 36
What Did I Learn? 37
Problem-Solving Application Case: Blood, Brilliance,
Blind Ambition, and Fraud 39
Legal/Ethical Challenge: What Would You Do? 41
PART ONE
Individual Behavior 1
2 VALUES AND ATTITUDES
WINNING AT WORK 43
WHAT’S AHEAD IN THIS CHAPTER 43
2.1 Personal Values 44
Schwartz’s Value Theory 44
SELF-ASSESSMENT 2.1: What Are My
Core Values? 47
The Dynamics of Values 47
2.2 Personal Attitudes and Their Impact
on Behavior and Outcomes 48
OB IN ACTION: Hospitality Industry Uses Attitude
Surveys to Target Causes of Turnover 49
Personal Attitudes: They Represent Your Consistent
Beliefs and Feelings about Specific Things 49
Attitudes Affect Behavior via Intentions 51
PROBLEM-SOLVING APPLICATION: McDonald’s
Workers Protest Sexual Harassment: What
Should Management Do? 52
2.3 Key Workplace Attitudes 54
Organizational Commitment 54
Employee Engagement 56
SELF-ASSESSMENT 2.2: To What Extent Are You
Engaged in Your Studies? 58
OB IN ACTION: Companies Foster Employee
Engagement in Different Ways 58
Perceived Organizational Support 59

xxiCONTENTS
3 INDIVIDUAL DIFFERENCES AND EMOTIONS
WINNING AT WORK 78
WHAT’S AHEAD IN THIS CHAPTER 78
3.1 The Differences Matter 79
APPLYING OB: Does Your Potential Boss Get the Job? 80
3.2 Intelligences: There Is More to the
Story Than IQ 82
Intelligence Matters . . . And You Have More Than You
Might Think 82
Practical Implications 85
OB IN ACTION: Smarts and Performance in Sports 86
3.3 Personality, OB, and My Effectiveness 87
There Is More to Personality Than Liking and Fit 87
The Big Five Personality Dimensions 88
SELF-ASSESSMENT 3.1: What Is My Big Five
Personality Profile? 88
Hail the Introverts 89
Proactive Personality 89
APPLYING OB: How to Thrive as an Introvert 90
SELF-ASSESSMENT 3.2: How Proactive Am I? 90
The Dark Side of Personality 92
Personality and Performance 93
Personality Testing at Work 93
APPLYING OB: Acing Employment Tests 94
There Is No “Ideal Employee” Personality 95
3.4 Core Self-Evaluations: How My Efficacy,
Esteem, Locus, and Stability Affect My
Performance 96
Self-Efficacy—“I Can Do That” 97
OB IN ACTION: You Can Go to the Moon and Beyond,
If You Believe in Yourself 98
Self-Esteem—“Look in the Mirror” 99
Locus of Control: Who’s Responsible—Me or External Factors? 100
Emotional Stability 101
Three Practical Considerations for Core Self-Evaluations 102
SELF-ASSESSMENT 3.3: How Positively Do I See Myself? 103
3.5 The Value of Being Emotionally
Intelligent 104
What Is Emotional Intelligence? 104
SELF-ASSESSMENT 3.4: What Is Your Level of Emotional
Intelligence? 105
PROBLEM-SOLVING APPLICATION: Darkness in the C-Suite
at Uber 106
Benefits of EI 107
3.6 Understand Emotions to Influence
Performance 109
Emotions—We All Have Them, but What Are They? 109
Emotions as Positive or Negative Reactions to Goal
Achievement 110
APPLYING OB: Do You Procrastinate? Blame Your
Emotions! 110
Besides Positive and Negative, There’s Past vs. Future 111
How Can I Manage My Negative Emotions at Work? 111
OB IN ACTION: The Good and Bad of Anger at Work 111
APPLYING OB: Managing Emotions During Job Search 113
3.7 Making the Connection: How Do Individual
Differences and Emotions Affect My
Performance? 114
What Did I Learn? 115
Problem-Solving Application Case: Better Ingredients. Better
Pizza. Worst Spokesperson. 117
Legal/Ethical Challenge: To Test or Not to Test, That Is a
Problem 119
2.4 The Causes of Job Satisfaction 60
SELF-ASSESSMENT 2.3: How Satisfied Are You with Your
Present Job? 60
At a Glance: Five Predominant Models of Job Satisfaction 61
Brief Preview: Five Predominant Models of Job Satisfaction 61
A Shorter Walk to Work 62
APPLYING OB: Best Practices for Implementing
Telecommuting 63
2.5 Major Correlates and Consequences of
Job Satisfaction 64
Attitudinal Outcomes of Job Satisfaction 64
PROBLEM-SOLVING APPLICATION: What to Do, or Not to Do,
about Sexual Harassment 65
Behavioral Outcomes of Job Satisfaction 66
APPLYING OB: Using Job Satisfaction to Reduce Employee
Turnover 69
Organizational-Level Outcomes of Job Satisfaction 69
2.6 Making the Connection: How Do
Values and Attitudes Affect Work-Related
Outcomes? 70
What Did I Learn? 71
Problem-Solving Application Case: Walmart’s Values Come under
Scrutiny 73
Legal/Ethical Challenge: What Should Management Do About an
Abusive Supervisor? 75
4 SOCIAL PERCEPTION AND MANAGING DIVERSITY
WINNING AT WORK 122
WHAT’S AHEAD IN THIS CHAPTER 122
4.1 The Perception Process 123
Stages of Social Perception 123
A Model of Person Perception 125
APPLYING OB: Developing Cultural Awareness to Enhance
Perception 127
Managerial Implications of Person Perception 128
OB IN ACTION: Virtual Interviews Can Improve the Accuracy
of Job Interviews and Reduce Costs 129
4.2 Stereotypes 130
Stereotype Formation and Maintenance 130
Managerial Challenges and Recommendations 131

xxii CONTENTS
4.7 Organizational Practices Used to Effectively
Manage Diversity 148
Framework of Options 148
How Companies Are Responding to the Challenges of
Diversity 150
PROBLEM-SOLVING APPLICATION: Firefighters, 46 and 54,
Sue for Age Discrimination 151
SELF-ASSESSMENT 4.3: How Does My Diversity Profile Affect
My Relationships with Other People? 152
4.8 Making the Connection: Why Is Understanding
Perception and Diversity Essential to Your
Success? 153
What Did I Learn? 154
Problem-Solving Application Case: White, Male, and Asian: The
Diversity Profile of Technology Companies 157
Legal/Ethical Challenge: Should Patient Requests Trump Health
Care Employees’ Civil Rights? 159
4.3 Causal Attributions 132
Kelley’s Model of Attribution 132
Attributional Tendencies 134
Managerial Applications and Implications 134
4.4 Defining and Managing Diversity 135
Layers of Diversity 135
Affirmative Action vs. Diversity Management 137
4.5 Building the Business Case for Managing
Diversity 139
Business Rationale 139
OB IN ACTION: Using Product Design to Reach a Diverse
Market 139
Trends in Workforce Diversity 140
SELF-ASSESSMENT 4.1: What Are Your Attitudes Toward
Working with Older Employees 144
4.6 Barriers and Challenges to Managing
Diversity 145
APPLYING OB: Best Companies for Millennials 146
SELF-ASSESSMENT 4.2: Assessing an Organization’s Diversity
Climate 147
5 FOUNDATIONS OF EMPLOYEE MOTIVATION
WINNING AT WORK 161
WHAT’S AHEAD IN THIS CHAPTER 161
5.1 The What and Why of Motivation 162
Motivation: What Is It? 162
The Two Fundamental Perspectives on Motivation:
An Overview 163
5.2 Content Theories of Motivation 164
McGregor’s Theory X and Theory Y 164
Maslow’s Need Hierarchy Theory: Five Levels of Needs 164
Acquired Needs Theory: Achievement, Affiliation, and
Power 165
SELF-ASSESSMENT 5.1: Assessing Your Acquired Needs 166
OB IN ACTION: Cameron Mitchell, Founder and CEO of
Cameron Mitchell Restaurants, Exemplifies Acquired
Needs 167
Self-Determination Theory: Competence, Autonomy, and
Relatedness 168
Herzberg’s Motivator-Hygiene Theory: Two Ways to Improve
Satisfaction 169
PROBLEM-SOLVING APPLICATION: Walmart Adds Sick-Leave
Pay. Problem Solved? 171
5.3 Process Theories of Motivation 173
Equity/Justice Theory: Am I Being Treated Fairly? 173
SELF-ASSESSMENT 5.2: Measuring Perceived Interpersonal
Treatment 176
Expectancy Theory: Does My Effort Lead to Desired
Outcomes? 178
PROBLEM-SOLVING APPLICATION: Symphony Orchestras on
Strike 180
PROBLEM-SOLVING APPLICATION: A High School Principal
Uses Principles of Expectancy Theory to Motivate
Students 182
Goal-Setting Theory: How Can I Harness the Power of Goal
Setting? 182
5.4 Motivating Employees through Job
Design 185
Top-Down Approaches—Management Designs Your Job 186
OB IN ACTION: Job Swapping and Job Rotation Opportunities
Abound 187
Bottom-Up Approaches—You Design Your Own Job 189
SELF-ASSESSMENT 5.3: To What Extent Have I Used Job
Crafting? 191
Idiosyncratic Deals (I-Deals)—You Negotiate the Design of Your
Job 191
SELF-ASSESSMENT 5.4: Creating an I-Deal 191
5.5 Making the Connection: How Can I Apply
Motivation Theories? 192
What Did I Learn? 193
Problem-Solving Application Case: Workers at Amazon Are Not
Feeling Motivated 195
Legal/Ethical Challenge: Should Senior Executives Receive
Bonuses for Navigating a Company through Bankruptcy 197
6 PERFORMANCE MANAGEMENT
WINNING AT WORK 200
WHAT’S AHEAD IN THIS CHAPTER 200
6.1 Performance Management Processes 201
Effective Performance Management 201
Common Uses of Performance Management 202
APPLYING OB: Apply Goal Setting to Your
Job and Career 203
What Goes Wrong with Performance Management 203
APPLYING OB: The Deloitte Way: “Snapshots”
and “Check-ins” 205
Contemporary PM Is Continual 206

xxiiiCONTENTS
Types of Rewards 226
SELF-ASSESSMENT 6.2: What Rewards Do I
Value Most? 227
Distribution Criteria 228
Desired Outcomes of the Reward System 228
APPLYING OB: Put the “I” In Team with Appropriate
Incentives 229
Be Sure You Get the Outcomes You Desire 229
Total and Alternative Rewards 230
OB IN ACTION: A Car, $100,000, and There’s More Where
That Came From at Hilcorp 231
Why Rewards Often Fail and How to Boost Their
Effectiveness 231
PROBLEM-SOLVING APPLICATION: Incentives, Performance,
and Schools 232
Pay for Performance 233
Making Pay for Performance Work 235
6.6 Reinforcement and Consequences 236
The Law of Effect—Linking Consequences
and Behaviors 236
Using Reinforcement to Condition Behavior 236
Contingent Consequences 237
Positive Reinforcement Schedules 239
Organizations Typically Rely on the Weakest
Schedule 241
6.7 Making the Connection: How Can
I Use Goals, Feedback, Rewards,
and Positive Reinforcement to Boost
Effectiveness? 243
What Did I Learn? 245
Problem-Solving Application Case: Incentives Gone Wrong, Then
Wrong Again, and Wrong Again 247
Legal/Ethical Challenge: What Is Your Current Salary? 249
6.2 Define Performance—Expectations and
Goals 207
Do You Want to Perform or Learn? 207
Managing the Goal-Setting Process 208
OB IN ACTION: I Need to See Some ID 210
Contingency Approach to Defining Performance and Setting
Goals 211
6.3 Performance Monitoring and Evaluations 212
Monitoring Performance—Measure Goals Appropriately and
Accurately 212
OB IN ACTION: Monitoring for Performance Becomes More
Sophisticated and Pervasive 213
Evaluating Performance 214
6.4 Performance Review, Feedback, and
Coaching 217
What Effective Feedback Is . . . and Is Not 217
If Feedback Is So Helpful, Why Don’t We Get and Give More? 218
Two Functions of Feedback 218
Important Sources of Feedback—Including Those Often
Overlooked 219
OB IN ACTION: How Do You Spell Feedback and
Self-Improvement? Z-A-P-P-O-S! 220
Your Perceptions Matter 221
SELF-ASSESSMENT 6.1: What Is My Desire for Performance
Feedback? 221
APPLYING OB: Making Lemonade from Lemons—How to
Respond to Negative Feedback 222
Today’s Trends in Feedback 224
Coaching—Turning Feedback into Change 224
APPLYING OB: An “F” In Coaching Signals Success 225
6.5 Providing Rewards and Other
Consequences 226
Key Factors in Organizational Rewards 226
7 POSITIVE ORGANIZATIONAL BEHAVIOR
WINNING AT WORK 252
WHAT’S AHEAD IN THIS CHAPTER 252
7.1 The Value of Positivity 253
Two Scenarios—Which Do You Prefer? 253
A Framework for Positivity 254
The Benefits of Positive OB Extend beyond Good
Performance 255
APPLYING OB: How to Build Positivity and Your Success 256
OB IN ACTION: How Do You Spell Green? ESG. 259
PROBLEM-SOLVING APPLICATION: Whole Foods vs. Whole
Amazon 260
7.2 The Power of Positive Emotions 261
Beyond Happy vs. Sad 261
Positive Emotions Are Contagious 262
How Much Positivity Is Enough? 264
APPLYING OB: Boost Positivity with Fun 265
SELF-ASSESSMENT 7.1: Learn Your Positivity Ratio 267
7.3 Fostering Mindfulness 268
Big Business 269
OB IN ACTION: Biotech, Insurance, and Industrials . . .
They’re All Mindful. What About You? 269
Benefits of Mindfulness 270
SELF-ASSESSMENT 7.2: What Is My Level of Mindfulness? 271
Practicing Mindfulness 271
7.4 Psychological Capital and Signature
Strengths 273
Hope = Willpower + Waypower 273
Efficacy 274
Resilience 274
Optimism 274
OB IN ACTION: Resilience Is Organizational
at Kaiser 275
How I Can Develop My PsyCap 276
SELF-ASSESSMENT 7.3: What Is My Level of PsyCap? 276
Signature Strengths 277
SELF-ASSESSMENT 7.4: What Are My Signature
Strengths? 278
7.5 Positive Organizational Climates 279
OB IN ACTION: Sweetgreen . . . Sweet Indeed 279
Organizational Values 280
Organizational Practices 281
Virtuous Leadership 282

xxiv CONTENTS
7.7 Making the Connection: How Can I Flourish at
School, Work, and Home? 288
What Did I Learn? 290
Problem-Solving Application Case: Opioids: Pain Relief,
Grief, and Purdue 292
Legal/Ethical Challenge: Is Hiring Candidates with Criminal
Records Wise or Risky? 294
7.6 Flourishing: The Destination of POB 283
Positive Emotions 283
APPLYING OB: Converting Rejection into Business, or Not 284
Engagement 285
Relationships 285
Meaningfulness 286
Achievement 287
8 GROUPS AND TEAMS
WINNING AT WORK 298
WHAT’S AHEAD IN THIS CHAPTER 298
8.1 Group Characteristics 299
Formal and Informal Groups 300
Roles and Norms: The Social Building Blocks for Group and
Organizational Behavior 300
SELF-ASSESSMENT 8.1: Group and Team Role Preference
Scale 302
OB IN ACTION: Improve Team Norms to Improve Surgical
Outcomes 304
8.2 The Group Development Process 305
Tuckman’s Five-Stage Model of Group Development 306
APPLYING OB: How to Cultivate Cohesiveness and
Success 307
Punctuated Equilibrium 307
8.3 Teams and the Power of Common
Purpose 309
SELF-ASSESSMENT 8.2: Is This a Mature Work Group or a
Team? 309
Team Players versus Free-Riders 309
OB IN ACTION: At T-Mobile Groups Lose,
But Teams Thrive! 310
SELF-ASSESSMENT 8.3: Evaluate Your Team Member
Effectiveness 311
Types of Teams 313
Virtual Teams 314
Team Interdependence 315
8.4 Trust Building and Repair—Essential Tools
for Success 317
Three Forms of Trust and How to Build Them 318
SELF-ASSESSMENT 8.4: How Much Do You Trust Another? 319
APPLYING OB: Microinternships Can Produce Major Benefits 319
Repairing Trust 320
8.5 Keys to Team Effectiveness 321
Characteristics of High-Performing Teams 321
The 3 Cs of Effective Teams 321
OB IN ACTION: Want Better Teamwork? Expect and Ensure
Conflict 322
Collaboration and Team Rewards 324
PROBLEM-SOLVING APPLICATION: Hospitals and Nursing
Homes Collaborate to Combat Common Foes 325
OB IN ACTION: Space Travel Requires Teams of Teams 326
8.6 Making the Connection: How Can
Working with Others Increase My
Performance? 328
What Did I Learn? 330
Problem-Solving Application Case: Money, Design, and
Disaster 332
Legal/Ethical Challenge: Whose Accountable? 334
PART TWO
Groups 295
9 COMMUNICATION IN THE DIGITAL AGE
WINNING AT WORK 338
WHAT’S AHEAD IN THIS CHAPTER 338
9.1 Basic Dimensions of the Communication
Process 339
Defining Communication 339
How the Communication Process Works 340
OB IN ACTION: Transparency Is the Message at Skinfix 341
Selecting the Right Medium 342
9.2 Communication Competence 344
SELF-ASSESSMENT 9.1: Assessing Your Communication
Competence 344
Sources of Nonverbal Communication 344
Listening 346
SELF-ASSESSMENT 9.2: Assessing Your Listening Style 347
Nondefensive Communication 348
Connecting with Others via Empathy 348
OB IN ACTION: Empathy Is Good for Business 349
9.3 Gender, Generations, and Communication 350
Communication Patterns between Women and Men 350
Generational Differences in Communication 351
Improving Communications between the Sexes and
Generations 352
9.4 Social Media and OB 353
Social Media and Increased Productivity 354
APPLYING OB: How to Optimize LinkedIn 355
OB IN ACTION: Expanding Organizational Boundaries with
Crowdsourcing at Lego, Frito-Lay 356
Costs of Social Media 356
PROBLEM-SOLVING APPLICATION: A Very Expensive
Fantasy 357

xxvCONTENTS
9.6 Making the Connection: How Can I
Become a More Effective
Communicator? 370
What Did I Learn? 372
Problem-Solving Application Case: United’s Turbulent
Communications Strategy 375
Legal/Ethical Challenge: Should Social Media Posts Impact Life
Insurance Premiums? 377
Make E-mail Your Friend, Not Your Foe 358
Social Media Concerns and Remedies—What Companies and
You Can Do 358
SELF-ASSESSMENT 9.3: Assessing Social Media
Readiness 360
OB IN ACTION: Coca-Cola’s Online Social Media Principles 361
APPLYING OB: Acing a Skype Interview 363
9.5 Communication Skills to Boost your
Effectiveness 364
Presenting—Do You Give Reports or Do You Tell Stories? 364
APPLYING OB: How to Dazzle the Crowd—Tips on Public
Speaking 366
Crucial Conversations 367
Managing Up 368
10 MANAGING CONFLICT AND NEGOTIATIONS
WINNING AT WORK 380
WHAT’S AHEAD IN THIS CHAPTER 380
10.1 A Contemporary View of Conflict 381
SELF-ASSESSMENT 10.1: Interpersonal Conflict
Tendencies 381
Conflict Is Everywhere and It Matters 381
A Modern View of Conflict 381
A Conflict Continuum 382
Functional vs. Dysfunctional Conflict 382
Common Causes of Conflict 383
Escalation of Conflict 383
APPLYING OB: You’ve Decided to Leave Your Job . . . How Do
You Explain It During an Interview? 384
Conflict Avoidance 385
Desired Outcomes of Conflict Management 386
10.2 Conventional Forms of Conflict 387
Personality Conflicts 387
Intergroup Conflict 387
How to Handle Intergroup Conflict 388
SELF-ASSESSMENT 10.2: Psychological Safety Climate 390
APPLYING OB: Psychological Safety Is Oxygen at Google 390
10.3 Forms of Conflict Intensified by Technology 391
Work–Life Conflict 391
SELF-ASSESSMENT 10.3: School–Non-School Conflict 392
Incivility—Treating Others Poorly Has Real Costs 395
SELF-ASSESSMENT 10.4: Bullying Scale—Target and
Perpetrator 399
10.4 Effectively Managing Conflict 400
Programming Functional Conflict 400
Conflict-Handling Styles 401
SELF-ASSESSMENT 10.5: Preferred Conflict-
Handling Style 402
OB IN ACTION: Maybe It’s a Difference in Style, and
Maybe It’s Yours 404
Third-Party Interventions: Alternative Dispute
Resolution (ADRs) 405
PROBLEM-SOLVING APPLICATION: Food Fight on
Campus 406
10.5 Negotiation 408
Two Basic Types of Negotiation 408
OB IN ACTION: Who Is Going to Eat More Pie, Writers or
Agents? 410
Emotions and Negotiations 411
APPLYING OB: How to Ask for More Money 412
Ethics and Negotiations 413
10.6 Making the Connection: How Can Managing
Conflict and Negotiating Give Me an
Advantage? 415
What Did I Learn? 417
Problem-Solving Application Case: With Trouble Comes Conflict,
and with Conflict Comes Trouble 419
Legal/Ethical Challenge: Arbitrate or Litigate? Employees Now
Have a Choice 421
11 DECISION MAKING AND CREATIVITY
WINNING AT WORK 424
WHAT’S AHEAD IN THIS CHAPTER 424
11.1 Rational and Nonrational Models
of Decision Making 425
Two Ways of Thinking 425
Rational Decision Making: Managers Make Logical and Optimal
Decisions 426
Nonrational Models of Decision Making: Decision Making Does
Not Follow an Orderly Process 428
OB IN ACTION: Improving an Airport Terminal under Bounded
Rationality 429
APPLYING OB: Tips for Improving Your Intuition 432
SELF-ASSESSMENT 11.1: Assessing Your Intuition 432
11.2 Decision-Making Biases: Rules of
Thumb or “Heuristics” 433
PROBLEM-SOLVING APPLICATION: Overconfidence
Bias Partly to Blame for California Wildfire 434
11.3 Evidence-Based Decision Making 437
Using Evidence to Make Decisions 438
Big Data: The Next Frontier in Evidence-Based
Decision Making 439
OB IN ACTION: Big Data Helps Advance the Health Care
Industry 440
Artificial Intelligence: Teaching Machines to
Make Decisions 440

xxvi CONTENTS
Practical Contingency Recommendations for Group Decision
Making 450
Reaching Consensus: The Goal of Group Problem-Solving
Techniques 450
Practical Problem-Solving Techniques 450
11.7 Creativity 452
A Model of Creativity 452
SELF-ASSESSMENT 11.4: Assessing Climate for Creativity 454
Practical Recommendations for Increasing Creativity 455
APPLYING OB: Tips for Sparking Creativity 455
11.8 Making the Connection: How
Can I Master Decision-Making and
Creativity Skills? 456
What Did I Learn? 457
Problem-Solving Application Case: Airbus Decides to Permanently
Land the A380 460
Legal/Ethical Challenge: Should Colleges Expel Students Whose
Parents Cheated to Get Them In? 462
11.4 Four Decision-Making Styles 442
Value Orientation and Tolerance for Ambiguity 442
The Directive Style: Action-Oriented Decision Makers Who
Focus on Facts 442
The Analytical Style: Careful and Slow Decision Makers Who
Like Lots of Information 443
The Conceptual Style: Intuitive Decision Makers Who Involve
Others in Long-Term Thinking 444
The Behavioral Style: Highly People-Oriented Decision
Makers 444
Which Style Are You? 444
SELF-ASSESSMENT 11.2: What Is My Decision-Making
Style? 444
11.5 A Road Map to Ethical Decision Making 445
11.6 Group Decision Making 447
Advantages and Disadvantages of Group Decision Making 448
Groupthink 448
SELF-ASSESSMENT 11.3: Assessing Participation in Group
Decision Making 450
12 POWER, INFLUENCE, AND POLITICS
WINNING AT WORK 466
WHAT’S AHEAD IN THIS CHAPTER 466
12.1 Power and Its Basic Forms 467
Five Bases of Power 467
APPLYING OB: Follow Me—All the Way to the Bank 469
SELF-ASSESSMENT 12.1: What Kind of Power Do I Prefer? 470
Position vs. Personal Power 470
APPLYING OB: From Teammate to Manager: Taking Charge 471
Power, but for What Purpose? 472
12.2 Power Sharing and Empowerment 475
Structural Empowerment 475
Psychological Empowerment 477
How to Empower Individuals, Teams, and Organizations 478
PROBLEM-SOLVING APPLICATION: Empowering a Team of
Your Peers 479
12.3 Effectively Influencing Others 480
Common Influence Tactics 480
SELF-ASSESSMENT 12.2: Which Influence Tactics Do I Use? 482
OB IN ACTION: Hard Sell . . . Amazon Style 482
Match Tactics to Desired Outcomes 483
Influence in Virtual Teams 483
Cialdini’s Six Principles of Persuasion 484
Apply Your Knowledge 485
12.4 Political Tactics and How to Use Them 486
SELF-ASSESSMENT 12.3: How Political Am I? 486
Organizational Politics—The Good and the Bad 486
OB IN ACTION: Turning Politics Upside Down . . . Employees
Rule! 487
Uncertainty and Political Behavior 487
Frequently Used Political Tactics 488
Blame and Politics 489
Three Levels of Political Action 490
OB IN ACTION: Fed Up, Rise Up, Affect Change . . . Students
Take Action 491
Using Politics to Your Advantage 492
12.5 Impression Management 493
What Is Impression Management? 493
Good Impressions 493
APPLYING OB: Etiquette Gets You Hired 494
SELF-ASSESSMENT 12.4: Your Impression Management—How
and Who 495
Impression Management and Job Interviews 496
OB IN ACTION: Is Your Ink an Asset, a Liability, or Just
Colorful? 496
Ethics and Impression Management  497
Apologies 498
12.6 Making the Connection: How Can I Apply
Power, Influence, and Politics to Increase
My Effectiveness? 500
What Did I Learn? 501
Problem-Solving Application Case: #MeToo—Just Do It! 503
Legal/Ethical Challenge: If You Work Here,
You Can’t Eat Meat! 504
13 LEADERSHIP EFFECTIVENESS
WINNING AT WORK 508
WHAT’S AHEAD IN THIS CHAPTER 508
13.1 Making Sense of Leadership Theories 509
An Integrated Model of Leadership 509
What Is the Difference between Leading and Managing? 511
SELF-ASSESSMENT 13.1: Assessing Your Readiness to
Assume a Leadership Role 511
13.2 Trait Theories: Do Leaders Possess Unique
Traits and Personal Characteristics? 512
What Core Traits Do Leaders Possess? 512
What Role Does Emotional Intelligence Play in Leadership
Effectiveness? 513
Do Women and Men Display the Same Leadership
Traits? 514

xxviiCONTENTS
13.5 Transformational Leadership: How Do Leaders
Transform Employees’ Motives? 530
A Model of Transformational Leadership 530
How Does Transformational Leadership Work? 532
SELF-ASSESSMENT 13.4: Assessing Your Boss’s Transforma-
tional Leadership? 532
13.6 Additional Perspectives on Leadership 534
The Leader-Member Exchange (LMX) Model of Leadership 534
SELF-ASSESSMENT 13.5: Assessing Your Leader-Member
Exchange 536
APPLYING OB: Tips for Improving the Quality of a
Leader–Member Exchange 536
The Power of Humility 537
The Role of Followers in the Leadership Process 537
13.7 Making the Connection: What Does It Take to
Be an Effective Leader? 539
What Did I Learn? 540
Problem-Solving Application Case: Leadership Matters! 543
Legal/Ethical Challenge: Should Store Managers Force Employees
to Pierce Kids’ Ears Against Their Wishes? 545
How Important Are Knowledge and Skills? 514
Do Perceptions Matter? 514
What Are the Take-Aways from Trait Theory? 515
13.3 Behavioral Theories: Which Leader Behaviors
Drive Effectiveness? 516
Task-Oriented Leader Behavior 516
OB IN ACTION: Dabo Swinney Uses Task-Oriented Leadership
to Reclaim the Championship for Clemson 517
Relationship-Oriented Leader Behavior 518
SELF-ASSESSMENT 13.2: Assessing Your Task- and Relationship-
Oriented Leader Behavior 518
SELF-ASSESSMENT 13.3: Assessing Your Servant
Orientation 521
Abusive Supervision 521
OB IN ACTION: Abusive Leadership at a Pharmacy 522
What Are the Take-Aways from Behavioral Theory? 522
13.4 Contingency Theories: Does the Effectiveness
of Leadership Depend on the Situation? 523
Fiedler’s Contingency Model 523
PROBLEM-SOLVING APPLICATION: Barnes & Noble Seeks a
Leader 525
House’s Path-Goal Theory 526
Applying Contingency Theories 529
14 ORGANIZATIONAL CULTURE, SOCIALIZATION, AND MENTORING
WINNING AT WORK 550
WHAT’S AHEAD IN THIS CHAPTER 550
14.1 The Foundation of Organizational Culture:
Understanding Its Drivers and Functions 551
Defining Culture and Exploring Its Impact 551
The Three Levels of Organizational Culture 552
OB IN ACTION: Being vs. Becoming Sustainable 554
The Four Functions of Organizational Culture 555
14.2 The Impact of Organizational Culture Types on
Outcomes 558
Identifying Culture Types with the Competing Values
Framework 558
OB IN ACTION: Activision Blizzard Integrates Clan and
Adhocracy Cultures 562
SELF-ASSESSMENT 14.1: What Is the Organizational Culture
at My Current Employer? 563
Outcomes Associated with Organizational Culture 564
Subcultures Matter 565
14.3 Mechanisms or Levers for Culture
Change 566
12 Mechanisms or Levers for Creating Culture Change 567
PROBLEM-SOLVING APPLICATION: Sprouts Farmers Market:
The Best Culture or the Worst? 572
SELF-ASSESSMENT 14.2: What Type of Organizational Culture
Do I Prefer? 573
14.4 Embedding Organizational Culture Through
the Socialization Process 574
A Three-Phase Model of Organizational Socialization 574
OB IN ACTION: Companies Use Different Approaches to
Onboard Employees 576
SELF-ASSESSMENT 14.3: Have You Been Adequately
Socialized? 577
Practical Applications of Socialization Research 577
APPLYING OB: Key Skills Needed for Success in a New
Job 579
14.5 Embedding Organizational Culture Through
Mentoring 580
Functions of Mentoring 580
Human and Social Capital Enhance the Benefits of
Mentoring 582
APPLYING OB: Key Strategies for Cultivating a Network and a
Mentoring Relationship 583
SELF-ASSESSMENT 14.4: Assessing My Level
of Mentoring 584
14.6 Making the Connection: How Can I Use These
Concepts to Fit, Develop, and Perform? 585
What Did I Learn? 586
Problem-Solving Application Case: Cultures Clash at Ford 589
Legal/Ethical Challenge: Should the Citadel Change Its
Socialization Practices? 591
PART THREE
Organizational Processes 547

xxviii CONTENTS
15 ORGANIZATIONAL DESIGN, EFFECTIVENESS, AND INNOVATION
WINNING AT WORK 594
WHAT’S AHEAD IN THIS CHAPTER 594
15.1 Understanding Organizational Behavior 595
15.2 The Foundation of an Organization 597
What Is an Organization? 597
Organization Charts 598
An Open-System Perspective of Organizations 599
Learning Organizations 600
SELF-ASSESSMENT 15.1: Are You Working for a Learning
Organization? 603
APPLYING OB: Learning from Failure 603
15.3 Organizational Design 604
Three Categories 604
Seven Types of Organizational Structures 606
OB IN ACTION: W.L. Gore & Associates Operates with a
Horizontal Design 607
SELF-ASSESSMENT 15.2: What Is Your Preference for
Telecommuting? 608
PROBLEM-SOLVING APPLICATION: Gig Workers Are a
Growing Force in the Labor Market 609
15.4 Contingency Design and Internal
Alignment 613
Contingency Factors 613
Internal Alignment 614
What Does This Mean to Me? 615
15.5 Organizational Innovation 616
Approaches toward Innovation 616
An Innovation System: The Supporting Forces for
Innovation 618
PROBLEM-SOLVING APPLICATION: Can AMD Innovate
without Risk? 620
SELF-ASSESSMENT 15.3: How Innovative Is the Organizational
Climate? 621
OB IN ACTION: Design Thinking Your Way to Innovative
Solutions 621
Office Design 623
15.6 Assessing Organizational Effectiveness 625
The Balanced Scorecard: A Dashboard-Based Approach to
Measuring Organizational Effectiveness 625
SELF-ASSESSMENT 15.4: Assessing the Learning and Growth
Perspective of the Balanced Scorecard 627
Strategy Mapping: Visual Representation of the Path to
Organizational Effectiveness 627
15.7 Making the Connection: How Can
Understanding Organizational Design,
Effectiveness, and Innovation Help Me
Succeed? 629
What Did I Learn? 630
Problem-Solving Application Case: Barnes & Noble Faces Its
Last Chapter 633
Legal/Ethical Challenge: Does Tax-Exempt Status for Universities
Make Them Good Organizational Citizens? 634
16 MANAGING CHANGE AND STRESS
WINNING AT WORK 638
WHAT’S AHEAD IN THIS CHAPTER 638
16.1 Forces for Change 639
SELF-ASSESSMENT 16.1: Assessing Your Attitudes toward
Change at Work 639
External Forces 639
Internal Forces 643
OB IN ACTION: The C-Suite Revolving Door 644
16.2 Types and Models of Change 646
Three General Types of Change 646
Lewin’s Change Model 647
A Systems Model of Change 648
APPLYING OB: How to Formulate a Meaningful Mission
Statement 649
OB IN ACTION: Changing the World with Shoes and Much
More 650
SELF-ASSESSMENT 16.2: What Is Your Readiness for
Change? 651
Kotter’s Eight-Step Organizational Change Process 652
Creating Change through Organization Development (OD) 652
16.3 Understanding Resistance to Change 655
SELF-ASSESSMENT 16.3: Assessing Your Resistance to
Change 655
A Dynamic View of Resistance 655
Causes of Resistance to Change 656
16.4 The Good and the Bad of Stress 658
Stress—Good and Bad 658
A Model of Job Stress 659
Confronting and Overcoming Failures 663
APPLYING OB: “Tell me about a time . . .” 664
16.5 Effective Change and Stress
Management 665
Applying the Systems Model of Change—Strategic Planning
and Diagnosis 665
PROBLEM-SOLVING APPLICATION: HBO + TNT + TBS +
CNN + ETC = NEW AT&T 665
How to Overcome Resistance to Change 666
How to Manage Stress 669
APPLYING OB: How Do You Spell Stress Relief? R-A-N-T! 670
Pulling It All Together—Change Management Tips for
Managers 670
APPLYING OB: Five Tips for Effective Change 671
16.6 Making the Connection: How Can I Apply
OB and Show What I’ve Learned? 672
What Did I Learn? 674
Problem-Solving Application Case: Toys R Amazon,
Walmart, and Others, but Not Us 676
Legal/Ethical Challenge: Can Employers Ethically
Force You to Change and Be Healthy? 678
ENDNOTES CN1
GLOSSARY/SUBJECT INDEX I-1
NAMES INDEX I-21
COMPANY INDEX I-25

Organizational
Behavior
A Practical, Problem-Solving Approach

Individual Behavior
PART ONE
Caia Image/Image Source

LO 1-1 Describe the value of OB to your job and career.
LO 1-2 Identify factors that influence unethical conduct and how it affects
performance.
LO 1-3 Utilize OB to solve problems and increase your effectiveness.
LO 1-4 Explain the practical relevance and power of OB to help solve problems.
LO 1-5 Utilize the Organizing Framework for Understanding and Applying OB.
LO 1-6 Apply the Organizing Framework to the 3-Step Problem-Solving Approach.
LO 1-7 Describe the implications of OB knowledge and tools for you and managers.
After reading this chapter, you should be able to:
In this chapter you’ll learn that the study and practice of OB often organizes the workplace into
three levels—the individual, the group or team, and the organization. We therefore structured
this book the same way—Part One is devoted to individual-level phenomena (job satisfaction),
Part Two to groups and teams (team cohesiveness), and Part Three to the organizational level
(innovation). Make sure you read the final section of Chapter 1 for a preview of the many con-
cepts you’ll learn in the book. You’ll also find a summary and application of the Organizing
Framework for Understanding and Applying OB and the 3-Step Problem-Solving Approach.
These are fundamental tools we created not only to help you learn more effectively, but also to
help you apply and realize the true value of OB for you personally.
1 Making OB Work for Me
C
ai
a
Im
ag
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Im
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e
So
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ce

Winning at Work
Your Future
projects, practice, sports, or clubs) and/or work (intern-
ships, full-time jobs, or volunteer work). Problem solving,
critical thinking, creativity, teamwork, collaboration, com-
munication, active listening, self-awareness, attention to
detail, strategic thinking.
5. Your Commitment to Development. Be sure to Include train-
ing or workshops (outside of school) you’ve done, as it will
show you are aware of the importance of these skills and
are committed to developing them.
6. Position Matters. Like real estate, location matters so be
thoughtful as to where you put key words. Education-related
information is obvious enough, in the education section, but
others depend on the resume format you choose. For
instance, skills-based resumes are now more popular com-
pared to old-school chronological resumes, especially if you
don’t have much experience yet or are changing careers.
7. Don’t Overlook the Cover Letter. This is an opportunity to
include and highlight the most Important key skills, if
you’ve identified them as suggested in #1 above.
8. What’s in a Name? A lot! Just as you expect to be
addressed by your name in an interview, assume the ATS
and humans who ultimately get involved in the hiring pro-
cess also value names. Specifically, be sure to include the
company name and job title. Don’t be generic, such as: “I
want to join a company that ____,” or “I want to contribute
to a valuable company . . .”4
Bottom line: Whether your major or job experience is accounting,
finance, marketing, IT/IS, or something else, the fact is that jobs
increasingly require OB knowledge and skills. “Everyone has to
work across silos,” says Becky Frankiewicz, president of Man-
power Group North America. And since OB skills “are not usually
taught in business schools or undergraduate programs, they are
qualities that you have to burnish on your own, preferably in the
early stages of your career.”5
Your future starts with your next job, whether it is your very first
or your tenth. Once you’ve identified a desirable job to apply for,
the challenge becomes—how do you get that job? Part of the
answer is to give employers what they want, and as you’ll learn
employers want employees who possess and effectively use OB
knowledge and tools.
Employers Want OB
This is supported by the findings of countless surveys, such as
one by ManpowerGroup with thousands of employers, which
found 61 percent rate people (OB) skills as the most important
trait in new hires.1 Research by the National Association of Col-
leges and Employers (NACE) routinely shows the three skills most
valued by employers are critical thinking, problem solving, and
teamwork.2 Building your skills in these areas and others is the
overarching goal of this book. The Applying OB box later in this
chapter differentiates and describes hard and soft skills in greater
detail, but what we cover here Is how to emphasize these on
your resume.
Talking to Robots
As you likely know, many companies use applicant tracking soft-
ware (ATS) that not only organizes the hundreds or even thousands
of applications received, but also makes them searchable. ATS
scans for key words inserted by humans, scores them accordingly,
and then pares the applications based on these scores. This means
you need to put points on the board with the robot. Even if you are
indeed the best candidate, if you’re not seen—no interview, no
offer, no job. And for the human eyes that ultimately review your
resume, some estimates suggest a recruiter spends approximately
6 seconds reviewing your resume.3 So, what can you do?
First, it is your responsibility to communicate to the prospective
employer (both their ATS robots and humans) what you can do for
them. Tell them in direct and specific terms what they want to
know and what you can do for them.
Use Their Language and Tell Them What
You Can Offer
1. Use the Same Language. You are well served to use the
same words a prospective employer uses in their job ads. To
ensure your spellings match theirs consider writing things in
multiple forms. Your degree, for instance, “I have a bache-
lor’s in management (BS in management),” includes two dif-
ferent versions and increases likelihood of being “picked.”
2. Identify Key Skills for the Job. If the most Important skills
are not listed or evident in the job posting, then what do
you do? Ask! Whomever you can communicate with simply
ask, “I know the posting notes a number of important skills,
but what are the two or three that are most important?”
3. Don’t Overlook Other Key Words. Your skills of course
matter, but also do your research and include key words
for Important customers, how they are served, as well as
key products and services.
4. Don’t Just List or Tell—Illustrate! Better than simply listing
are descriptions of how you’ve used these at school (team
What’s Ahead in This Chapter
You’ll learn how OB can drive your job and career success.
You’ll grasp the difference between hard and soft skills and
the value of developing both, as well as the importance of
self-awareness. We’ll show how ethics are integral to long-
term individual and organizational success, and we’ll intro-
duce a problem-solving approach you can use in a wide
variety of situations at school, at work, and in life. What
really powers this book is our Organizing Framework for
Understanding and Applying OB, which we introduce mid-
chapter. This framework will help you organize and apply
OB concepts and tools as you learn them. To show you the
power of the Organizing Framework, we conclude the
chapter with a preview of the many concepts, theories, and
tools you will learn. We then show you how to apply this
knowledge using our 3-Step Problem-Solving Approach.
We think you’ll be intrigued by this glimpse into all you will
learn in this book and course. Let’s get started!

4 PART 1 Individual Behavior
1.1 USE KNOWLEDGE OF OB TO ENHANCE YOUR
PERFORMANCE AND CAREER
The term  organizational behavior (OB)  describes an interdisciplinary field dedi-
cated to understanding and managing people at work. To achieve this goal, OB draws
on research and practice from many disciplines, including:
• Anthropology • Political science
• Economics • Psychology
• Ethics • Sociology
• Management • Neuroscience
• Organizational theory • Vocational counseling
From this list you can see that OB is very much an applied and broad discipline that
draws from many sources. Throughout this book we will help you see the relevance and
value of OB for your own job and career.
Let’s begin by looking at how OB compares to your other
courses, explaining the contingency perspective, which is the
premise of contemporary OB, and exploring the importance
of both hard and soft skills.
How OB Fits into My Curriculum
and Influences My Success
Organizational behavior is an academic discipline focused on
understanding and managing people at work. This includes
managing yourself and others both inside and outside the
organization, but unlike jobs associated with functional disci-
plines, such as accounting, marketing, and finance, you will
not get a job in OB.
What then is the benefit of learning about OB? The
answer is that the effective application of OB is critical to your
success in all disciplines of work and all job levels. As you’ll
learn, technical knowledge associated with any given job is
important, but your ability to influence, get along with, man-
age, and get things done through others is what makes the
difference. Put more simply—people skills!
THE BIGGER PICTURE
Are you uncertain about the value of organizational behavior (OB) and how it fits into your
school curriculum or your professional life? This section will explain how OB can be valuable
to you. You’ll see how OB knowledge and tools go far beyond common sense and can
enhance your personal job performance and career success. For instance, you will learn what
it takes to get hired versus what it takes to get promoted, the importance of both hard and
soft skills, and the role of self-awareness in your success.
Describe the value of
OB to your job and
career.
LO 1-1
Our professional lives are extremely busy and challenging and
effectiveness will require a host of both hard and soft skills. Your
understanding and application of OB concepts and tools will help
you meet the many challenges, perform better, and create more
attractive opportunities throughout your career.
Somos Images LLC/Alamy Stock Photo

5Making OB Work for Me CHAPTER 1
Applying OB knowledge and tools gives you opportunities, sets you apart from
your peers and competition, and contributes to your success. An important part of your
success is ability to know which tools to use and under what circumstances. This is
described as a contingency approach to managing people and is the foundation of con-
temporary OB.
A Contingency Perspective—The Contemporary Foundation of OB
A contingency approach calls for using the OB concepts and tools that best suit
the situation, instead of trying to rely on “one best way.” This means there is no
single best way to manage people, teams, or organizations. A particular management
practice that worked today may not work tomorrow. What worked with one employee
may not work with another. The best or most effective course of action instead depends
on the situation.
Harvard’s Clayton Christensen put it this way: “Many of the widely accepted princi-
ples of good management are only situationally appropriate.”6 Put differently, don’t use a
hammer unless the job involves nails. You’ll learn in Chapter 13, for instance, no single
leadership style is best and works in all situations. This makes OB very different from
many of your other courses in that answers here are rarely black and white, right or wrong,
but instead the best answer—the most appropriate behavior—depends on the situation.
Directly considering situational factors is fundamental to OB and is emphasized through-
out this book.
Therefore, to be effective you need to understand and do what is appropriate given the
situation, rather than adhering to hard-and-fast rules or defaulting to personal preferences
or organizational norms. Organizational behavior specialists, and many effective manag-
ers, embrace the contingency approach because it helps them consider the many factors
that influence the behavior and performance of individuals, groups, and organizations.
Taking a broader, contingent perspective like this is a fundamental key to your success in
the short and the long term.
Effectively applying the contingency approach requires self-awareness, which means
knowing your own skills, abilities, values, weaknesses, strengths, preferences, and fit with
the environment. It also includes knowing how others see you in terms of these same fac-
tors. Not surprisingly, self-awareness is key to your success in both the short and long
term.7 The following Applying OB box explains in some detail what self-awareness is and
how to build It.
To help increase your self-awareness we
include multiple Self-Assessments in every
chapter. These are an excellent way to learn
about yourself and see how you can apply
OB at school, at work, and in your personal
life. Go to Connect, complete the assess-
ments, then answer the questions included
in each of the Self-Assessment boxes.
Let’s start with your motivation to
manage others. Many employees never
manage others. Some choose not to and
some don’t get the chance, but what about
you? How motivated are you to manage
others? Go to conect.mheducation.com
and Self-Assessment 1.1 to learn about
your motivation for managing others.
What you learn might surprise you. Sur-
prised or not, more precisely understand-
ing your motivation to manage others can
guide your course selection in college and
your job choices in the marketplace.
A central feature of almost any successful development program is self-
awareness. Knowing who you are and knowing your preferences are impor-
tant considerations in personal development.
Lana Isabella/Moment/Getty Images

6 PART 1 Individual Behavior
Applying OB
Employers Care—So Should You. The Stanford Graduate
School of Business asked the members of its Advisory
Council which skills are most important for their MBA
students to learn. The most frequent answer was self-
awareness.8 Self-awareness has been identified as
one of the key attributes of successful leaders, as they
tend to get along better with others and their compa-
nies are more profitable.9
Key to Your Development. Larry Bossidy (former CEO
of Honeywell) and Ram Charan (world-renowned man-
agement expert) said it best in their book Execution:
“When you know yourself, you are comfortable with
your strengths and not crippled by your shortcomings.
Self-awareness gives you the capacity to learn from
your mistakes as well as your successes. It enables
you to keep growing.”10
Influencing Others. They also argue that you need to
know yourself in order to be authentic—real and not
fake, the same on the outside as the inside. Authentic-
ity is essential to influencing others, which we discuss
in detail in Chapter 12. People don’t trust fakes, and it
is difficult to influence or manage others if they don’t
trust you (trust is covered in Chapter 8). The implica-
tion is that to have a successful career you need to
know who you are, what you want, and how others
perceive you.
Experience + Power (does not equal) Self-Awareness.
Unfortunately, some people’s experience and success
lead them to be overconfident about their abilities and
become less self-aware. Making matters worse, the
same research revealed the more senior the leadership
position the greater the overconfidence, and only
10 to 15 percent of employees actually meet the
criteria of self-awareness, despite nearly all believing
they are!11
Building Your Self-Awareness. Research and practice
provide excellent practical guidance:
1. Practice mindfulness daily. We’ll explore mindful-
ness in detail in Chapter 7, but for our purposes
here mindfulness involves purposefully focusing
your attention on the here and now, yourself, the
environment, and those around you in the present
moment.
2. Take timeouts. Even if it is just a minute or two,
stop what you are doing and do nothing. Don’t
check your phone, e-mails, or go talk to a coworker.
Self-awareness requires time and space, and
when you’re working under (time) pressure you
are most likely to go with your habits and usual
ways of thinking, feeling, and acting. This is why
true timeouts can foster self-awareness.
3. Keep a diary of strengths and weaknesses. Make
and periodically revise a list of your strengths and
weaknesses.
4. Take self-assessments. Many tests exist, for example
the Myers-Briggs, that measure various personal
characteristics and help you learn about yourself.
Better still, there are multiple self-assessments in
every chapter of this book.
5. Keep ears open, mouth shut. In other words, listen!
Self-awareness requires insight and some of the
best insights come from others. Seek feedback,
listen, and learn.12
Self-Awareness Can Help You Build a Fulfilling Career
How Strong Is My Motivation to Manage?
Please be prepared to answer these questions if your instructor has assigned
Self-Assessment 1.1 in Connect.
1. Does this instrument accurately assess your potential as a manager? Explain.
2. Which of the seven dimensions do you think is likely the best predictor of
managerial success? Which is the least? Explain.
3. The instrument emphasizes competition with others in a win-lose mentality.
Describe the pros and cons of this approach to management.
SELF-ASSESSMENT 1.1 CAREER READINESS
CAREER READINESS

7Making OB Work for Me CHAPTER 1
“OB Is Just Common Sense” As professors and consultants we often hear, “OB is
just common sense.” We can easily refute this inaccurate claim, but instead we simply say—
“Even if it is common sense it certainly isn’t common practice!” If common sense were all
that mattered, managers would always treat employees fairly, businesses would never make
“stupid” decisions, and you and other employees would make very few mistakes. Everyone
would perform better and be happier.
Moreover, common sense is largely based on experience or logic, both of which have
limits, and it suffers three major weaknesses you need to be aware of and avoid:
• Overreliance on hindsight. Common sense works best in well-known or stable situa-
tions with predictable outcomes—what worked before should work again. But mod-
ern business situations are complex and uncertain and require adapting to change,
which are exactly the conditions under which common sense is likely to fail. And
because it focuses on the past, common sense lacks vision for the future.
• Lack of rigor. People comfortable with common-sense responses may not apply
the effort required to appropriately analyze and solve problems. If you lack
rigor, and aren’t especially thorough or precise, then you are unlikely to define
the problem accurately, identify the true causes, or recommend the right courses
of action.
• Lack of objectivity. Common sense can be overly subjective and lack a basis in sci-
ence. In such cases we are not always able to explain or justify our reasoning to oth-
ers, which is a sign that common sense lacks objectivity.
OB is a scientific means for overcoming the limits and weaknesses of common sense.
The contingency approach in OB means you don’t settle for options based simply on expe-
rience or common practice if another solution may be more effective. The goals of OB are
to give you more than common sense, enhance your understanding of situations at work,
and guide your behaviors. This in turn will make you more attractive to potential employ-
ers and more effective once hired. Let’s explore this idea in greater detail, beginning with
the importance of possessing and developing both hard and soft skills.
Employers Want Both Hard and Soft Skills
Most of us know the difference between hard and soft skills.
• Hard skills  are the technical expertise and knowledge required to do a par-
ticular task or job function, such as financial analysis, accounting, or operations.
• Soft skills  relate to human interactions and include both interpersonal skills
and personal attributes.
Susan Vitale, chief marketing officer for iCIMS, an HR software provider described
them this way: “Hard skills are what you do, and soft skills are how you do it.”13 Research
has long showed people may excel based on hard skills but they often fail because of soft
skills.14 Maybe that’s why firms tend to weigh soft skills so heavily when hiring. The Future
of Jobs report by the World Economic Forum provides compelling supporting evidence.
They found the most sought-after skills for graduates in 2020 are problem solving, critical
thinking, creativity, and people management.15
What do you notice about these four skills? Which are hard skills? None! Instead, all
are soft skills, the skills you need to interact with, influence, and perform effectively when
working with others.
This is a good news/bad news story. The good news—all of these skills are key topics
in this book and can be developed. The bad news is 33 percent of recruiting professionals
feel candidates’ skills in these areas have declined in the past five years.16 “Many claim
that college grads are lacking in people skills and have trouble solving problems and
thinking creatively. . . . Having a college degree and technical skills isn’t enough to land
their first job.”17

8 PART 1 Individual Behavior
Table 1.1 shows four sought-after skills, along with a brief explanation of how we
directly address them in this book.
One key aspect of soft skills is that they are not job specific. Instead they are  portable
skills , more or less relevant in every job, at every level, and throughout your
career.19 All of these and many more soft skills are represented by OB topics covered in
this book, whether as personal attributes or interpersonal skills:
Personal attributes Interpersonal skills
(with which you build goodwill and (with which you foster respectful
trust and demonstrate integrity) interactions)
• Attitudes (Chapter 2) • Active listening (Chapters 12 and 13)
• Personality (Chapter 3) • Positive attitudes (Chapters 2 and 7)
• Teamwork (Chapter 8) • Effective communication (Chapter 9)
• Leadership (Chapter 13)
The takeaway for you? Good interpersonal skills can make a candidate with a less-market-
able degree an appealing hire, while a lack of people skills may doom a college grad to
unemployment, low pay, or otherwise undesirable and limited opportunities.20
How OB Fits into My Career
Hard skills are of course important. Accountants, for instance, need to understand debits
and credits, financial analysts must calculate net present value, and both need to under-
stand cash flows. However, to be competitive and give employers what they want, you must
develop soft skills too. Some soft skills will even increase in importance over your career
and help set you apart from the competition. To highlight this point, think about the crite-
ria used for hiring workers versus promoting them.
TABLE 1.1 Four Skills Most Desired by Employers for Workforce 202018
SKILL DESCRIPTION THIS BOOK
1. Problem solving Identifying complex problems and
reviewing related information to
develop and evaluate options then
implement solutions.
Our problem-solving approach is used
throughout the book. We repeatedly
ask you to apply your knowledge to
solve problems at school, at work, and
in life.
2. Critical thinking Using logic and reasoning to identify
the strengths and weaknesses of
alternate solutions, conclusions, or
approaches to problems.
Critical thinking is fundamental to this
book and woven throughout. We
designed features and exercises to
help you think critically and apply your
OB knowledge and tools.
3. Creativity Applying new ideas, processes, and
technology to improve products,
services, and other outcomes.
Creativity is a function of person and
situation factors and can result In new
processes and outcomes. All of these
are fundamental elements of OB and
described in more detail later In this
chapter and throughout the book.
4. People management Motivating, developing, and influenc-
ing others to meet individual, group,
and organizational goals.
OB is people management which
means every chapter provides knowl-
edge and tools to make you a more
effective people manager.

9Making OB Work for Me CHAPTER 1
What It Takes to Get Hired Regardless of where you are in your career today, ask
yourself: What criteria were used to hire you for your first job? What factors did your hir-
ing manager consider? (If your first job is still ahead of you, what factors do you think will
be most important?) You and most of your peers
will identify things like college major, GPA, and
internship or other experience. In short, for most
jobs you are selected for your technical skills, your
ability to do the given job. Whatever the selection
criteria, you need to perform during the interview
process in order to receive the offer. The Applying OB
box provides some useful insights on how to ace
interviews.
What It Takes to Get Promoted Now ask
yourself what criteria are used for promotions? Of
course, performance in your current job is often a
primary consideration. However, you and many
other employees may fail to realize that your per-
ceived ability to get things done through others
and to manage people will be another important
deciding factor. If you and three of your coworkers
are all vying for an open management position,
then it’s likely all four of you perform at a high
level. This means performance isn’t the only
Applying OB
Everyone knows that jobs are won or lost during
interviews. Here are a few simple tips to help you finish
on top.
1. Create an elevator pitch. Imagine you’re in the
elevator with the interviewer and have only
60 seconds to sell yourself. Select your three best-
selling points (strengths) and concisely explain
how each would benefit the company. Stay
focused—keep your pitch short and meaningful.
2. Finish strong. At the end of the interview state
and show your enthusiasm for the opportunity.
Also restate your one or two best-selling points
and how they will benefit the company.
3. Prepare for situational questions. Anticipate
questions like, “Why do you want this job?” and,
“Tell me about a time when you had a conflict at
work and what you did about it.” Be prepared to
answer them by describing the situation, your
behavior, and the resulting impact. Also consider
describing what you learned in that situation.
4. Make your research social. Reach out to your net-
work privately (you don’t want everyone to know
you’re looking) and learn whether anyone has
worked for or interviewed with your target com-
pany. Learn about the person you’re interviewing
with on LinkedIn—education, past jobs, positions
within the target company. Glassdoor.com and
other sites can be a wealth of information on
employee experiences and compensation.
5. Don’t trip up on the money. It’s generally best to
wait until you have a formal offer in hand before
discussing pay. If asked about your salary require-
ment during the interview, respond by saying, “Are
you making me an offer?” The answer will likely
be, “No, not yet.” But if the interviewer persists,
say, “I would prefer to have all the details in hand
in order to determine what would be most appro-
priate and fair. Once I have those, I will happily dis-
cuss compensation.”21
How to Ace Your Next Interview
An understanding of OB can provide extremely valuable knowledge
and tools to help “sell” yourself during job interviews.
Chris Ryan/OJO Images/age fotostock
CAREER READINESS

10 PART 1 Individual Behavior
deciding factor—all of you are top performers. Instead, it may be your perceived ability to
directly or indirectly manage others!
Roxanne Hori, an associate dean at New York University’s Stern School of Business,
echoes this argument: “Yes, your knowledge of the functional area you’re pursuing is
important. But to succeed longer term . . . having strong team skills and knowing how to
build and manage relationships were seen as just as important.” One executive she inter-
viewed suggested that students should “take as much organizational behavior coursework
as possible . . . because as you move into leadership roles, the key skills that will determine
your success will be around your ability to interact with others in a highly effective fash-
ion.”22 As authors of this book, we agree, but more Importantly we hope after learning the
power of OB you’ll agree too.
Some career experts, such as Chrissy Scivicque, the CEO of a career coaching and
training firm and writer for Forbes and The Wall Street Journal, go so far as to say that most
people have the technical skills to succeed at higher-level jobs. And even if some new tech-
nical knowledge is needed it generally is easy to learn. However, as you rise through the
hierarchy your job generally will require a more developed set of soft skills, such as com-
munication, emotional intelligence, ethics, and stress management.23
We make this point visually in Figure 1.1. It illustrates how technical or job-specific
skills decline in importance as you move to levels of higher responsibility, while personal
skills increase.
Performance Gives Me Credibility Performance matters because it gives you cred-
ibility with your peers and those you may manage. Be aware that early in your career your
bosses will be looking for more than your job performance. They also will evaluate your
management potential, and their opinion will affect your future opportunities. So even in
a non-management position you need to know how to:
• Apply different motivational tools (Chapter 5).
• Provide constructive feedback (Chapter 6).
• Develop and lead productive teams (Chapters 8 and 13).
• Understand and manage organizational culture and change (Chapters 14 and 16).
Knowledge of OB, therefore, is critical to your individual performance, your ability to
work with and manage others, and your career success (promotions, pay raises, increased
opportunities). As you may already know, ethics can similarly make or break you at every
step of your career, which is why we cover it next.
FIGURE 1.1 Relative Importance of Different Skills Based on Job Level
High
Low Job
Level
Importance Personal Skills
Technical Skills
ExecutiveManagementFront-line
SOURCE: Lombardo, Michael, and Robert Eichinger. Preventing Derailment: What To Do Before It’s Too Late. North California:
Center for Creative Leadership, 1989.

Ethics guides our behavior by identifying right, wrong, and the many shades of gray
in between. We will weave discussions of ethics throughout the book for three key reasons.
1. Employees are confronted with ethical challenges at all levels of organizations and
throughout their careers.
2. Unethical behavior damages relationships, erodes trust, and thus makes it difficult to
influence others and conduct business.
3. Unethical behavior reduces cooperation, loyalty, and contribution, which hurts the
performance of individuals, teams, and organizations.
Ethics also gets priority because many OB topics have a direct and substantial influ-
ence on the conduct of individuals and organizations. Notably, reward systems (Chapter 6),
decision making (Chapter 11), leader behavior (Chapter 13), and organizational culture
(Chapter 14) all can powerfully challenge our ethical standards at work. Let’s begin by
describing cheating, a common form of unethical conduct at school and work.
Cheating
Cheating is a persistent part of reality in sports, school, and business. For instance,
with some regularity it seems a marathon runner either enters a race somewhere after
the start line or cuts the course (Rory O’Connor in London 2018), a ball is doctored to
provide unfair advantage (Cameron Bancroft of the Australia National cricket team),
or an individual athlete throws games or shaves points. An investigation of professional
tennis revealed a “tsunami” of fixed matches (hundreds) in the 2000s.24 Then there was
the systematic use and cover-up of performance enhancing drugs (PEDs) rampant in
major league baseball in the early 2000s, Lance Armstrong and his seven Tour de
France victories, and more recently the Russian Olympic team.25 PEDs are even used
by card players! The world champion bridge player Geir Helgemo tested positive for
banned substances and was suspended for one year and required to forfeit his title,
awards, and points.26
Student Cheating If cheating is common in sports, it is rampant in high school and
college. Fifty-one percent of high school students participating in a national survey
reported cheating on exams. And besides typical school cheating, such as looking on
another student’s paper, using a cheat sheet, or plagiarism, countless examples exist of
students sharing answers via social media, text messages, Bluetooth technology, and vari-
ous devices.28 Sixty-two percent of U.S. college students reported knowledge of another
student using a connected device to cheat on an assignment, exam, or project.29
11Making OB Work for Me CHAPTER 1
THE BIGGER PICTURE
If you were asked, “Do you know right from wrong? Are you secure in your ethics?” of course
you would answer yes to both questions. What’s interesting is that most people who suffer
ethical lapses also answer yes. OB can teach you about the drivers of unethical behavior, and
in the process improve your awareness while enabling you to reduce your risk. You’ll learn
that even though most unethical behavior is not illegal, it still causes tremendous damage to
people, their jobs and careers, and their employers. Fortunately, the OB concepts and tools
you learn through this course will help you recognize and navigate ethical challenges.
1.2 RIGHT VS. WRONG–ETHICS AND MY PERFORMANCE
Identify factors that
influence unethical
conduct and how it
affects performance.
LO 1-2

12 PART 1 Individual Behavior
And then there is contract cheating, paying someone else to do your work. Countless
websites advertise these services, and this type of cheating is at epidemic proportions
according to some.30 A survey of students worldwide found 16 percent paid for at least one
assignment during their college studies.31 Well-intentioned or not, some services can get
students in trouble, such as twelve Texas Christian University students who were sus-
pended for using the Quizlet app to cheat on exams.32 These are just a few examples and
statistics of a very long list or cheating in grade school and college, increasingly assisted by
technology. What percentage of students at your school do you think cheat on homework
assignments? Exams? Take-home finals?
Administrators, Teachers, and Parents Too Cheating isn’t limited to students.
T.M. Landry, a college prep school in rural Louisiana, which received incredible recogni-
tion for sending underprivileged students to elite universities, was caught falsifying tran-
scripts and college application materials.33 This is just another example of systematic and
illegal efforts by schools and school systems to falsely elevate performance.34 Temple
University’s business school dean was dismissed for submitting inaccurate data (e.g., GPA,
admissions, and GMAT scores) to improve the school’s rankings.35
We now know some number of parents, college admissions consultants, counselors,
coaches, and many others also engage in cheating, as revealed by the college admissions scan-
dal unveiled in early 2019. William Singer, the college consultant at the center of the scandal,
facilitated admissions for scores of students to numerous universities, such as the University
of Southern California, Stanford, and Yale. Parents paid him nearly $25 million for his ser-
vices, which included bribes to administrators, counselors, and coaches; faking student pro-
files, sometimes as elite athletes for sports they didn’t even play; and having other people take
SAT and ACT exams. Dozens of people have been charged with a host of crimes—money
laundering, fraud, racketeering, and obstruction of justice—with many pleading guilty.36
If winning a game or receiving good grades are strong temptations, then of course
people cheat to get ahead at work too, and sometimes misconduct seems contagious and
infects an industry. A notable example is the emissions and fuel economy cheating perpe-
trated by numerous automakers—VW (including Audi and Porsche), Nissan, Mitsubishi,
Suzuki, and Subaru. These companies engaged in widespread systematic falsification of
measures of fuel economy to meet and beat various environmental standards.37
These examples highlight the frequency and destructiveness of cheating. Now, let’s
explore other forms of unethical conduct and their legality, frequency, causes, and solutions.
Some describe cheating in marathons as rampant. Large races, like the Boston Marathon,
can have nearly forty thousand competitors. And in some marathons hundreds have been
accused of cheating in some fashion, from falsifying qualifying times to riding a bicycle twice
during one race!27
Marty Schwalm/MediaNews Group/Boston Herald/Getty Images

13Making OB Work for Me CHAPTER 1
Ethical Lapses—Legality, Frequency,
Causes, and Solutions
The vast majority of founders, leaders, and managers mean to run ethical organizations, yet
corporate corruption is widespread. Some of the executives whose unethical behavior bank-
rupted the organizations they led, destroyed the lives of many employees, and caused enor-
mous financial losses for employees, investors, and customers in the last few decades are:
Michael Milken (Drexel Burnham Lambert, 1990)
Kenneth Lay and Jeff Skilling (Enron, 2001)
Bernie Ebbers (WorldCom, 2002)
Bernie Madoff (Madoff Investment Securities LLC, 2009)
Hisao Tanaka (Toshiba, 2015)
Sepp Blatter (FIFA, 2015)
Shigehisa Takada (Takada, 2017)
Elizabeth Holmes (Theranos, 2018)
Indictments and verdicts are a matter for the courts, and our point is that each of
these disgraced executives led companies or organizations that in most cases employed
thousands of other people. Surely these organizations did not advertise for and hire the
criminally minded to assist the leaders in their unethical endeavors. Most employees prob-
ably knew little or nothing about any unethical or illegal activities, while others were deeply
involved. How does the work environment produce unethical conduct, sometimes on an
extreme scale, from people who are otherwise good, well-intentioned, and on the right side
of the law? Knowledge of OB helps you answer this question.
Unethical Does Not Mean Illegal While extreme examples of unethical and illegal
conduct make headlines, they are the exception. The truth is that very few unethical acts
are illegal, most are not punished in any way, and even if illegal, few are prosecuted.
This means you should not rely on the legal system to manage or assure ethical
conduct at work. For instance, conflicts of interest are very common across industries and
most are not illegal. The New York Times reported that Dr. Jose Baselga, a top cancer
researcher, didn’t disclose millions of dollars in compensation received from pharmaceuti-
cal companies for whom he conducted and published research related to their drugs. Dr.
Baselga also served on the boards of these same companies, was an editor for one that
published this work, and promoted the benefits of these drugs at conferences. Worse still,
Students aren’t the only ones who cheat in high school and college, Tracey and Michael Landry, founders of T.M. Landry College
Prep in Louisiana, were accused of orchestrating a very intricate scheme to get the school’s students into some of the most elite
universities. William Singer, a college consultant, implemented his own elaborate and far-reaching practices to ensure his clients’
(parents) children admission to colleges of their choice.
(Left) Brian Snyder/Reuters/Newscom; (right) Steven Senne/AP Images

14 PART 1 Individual Behavior
some of this occurred while he was president of the
Association of Cancer Research which made policies
regarding researcher conflicts, and he was the chief med-
ical officer at Sloan Kettering where some of the research
was conducted.38
Southwest Airlines mechanics provided another
example in 2019 when they created widespread slow-
downs in flights to pressure the company in negotiations
with their union. The mechanics slowed their work and
grounded planes in the name of safety concerns, causing
the cancellation of approximately 100 flights per day for
several weeks.39 Such actions are not uncommon and
rarely judged illegal, but they do raise ethical concerns
given the costs and inconveniences to customers. The
nearby OB in Action box provides another notable
instance of how widespread unethical behavior has
resulted in virtually no legal consequences.
Why Ethics Matters to Me and My Employer Criminal or not, unethical behavior
harms not only the offending employee but also his or her coworkers and employer. Uneth-
ical behavior by your coworkers, including company executives, can make you look bad
and tarnish your career.
Dr. Jose Baselga was accused of numerous conflicts of
interest related to his research.
Eligio Paoni/Contrasto/Redux Pictures
Zero. That is the number of senior Wall Street Execu-
tives that went to jail because of the 2008–2009 finan-
cial crisis. This is baffling to many, as Wall Street firms
were central to the creation, packaging, and sales of
faulty financial products that cost millions of people their
homes, jobs, and savings. It is estimated that $30 trillion
of the world’s wealth was destroyed during the crisis, in
large part due to the behaviors of financial institutions
overseen by executives. Put simply, the crisis would not
have happened without the firms and their leaders.
Many of the biggest firms were saved by the govern-
ment in what became known as “too big to fail.”40
Although over 300 people were convicted in
relation to the crisis, most of these were community
bankers, mortgage lenders, and real estate brokers
and developers. The lack of consequences for the
Wall Street executives is perhaps even more
astounding when over $150 billion In fines were lev-
ied and paid by their firms. Put differently, their firms
were fined enormous sums of money, which means
the firms were held accountable but the executives
who led them were not. This contrasts with other
countries, notably Iceland, which is far smaller than
the U.S., but prosecuted the CEOs of three large
banks and 23 other bankers.41
Two central figures in the U.S. during the crisis
had telling and damning comments. Eric Holder, the
U.S. attorney general at the time, said the conduct
that led to the crisis was “unethical and irresponsi-
ble.” And “some of this behavior—while morally rep-
rehensible—may not necessarily have been
criminal.”*42 Ben Bernanke, the chair of the Federal
Reserve Bank during the financial crisis, said, “. . .
more corporate executives should have gone to jail
for their misdeeds . . . since everything that went
wrong or was illegal was done by some individual,
not by an abstract firm.”43
YOUR THOUGHTS?
1. If you think executives (and perhaps other
employees) of financial institutions should be
punished for their roles in the crisis, describe
what punishment you think is appropriate.
2. If you think they should not be punished, explain
why.
3. Is it appropriate for the firms to pay fines, but for
the executives to avoid consequences? Justify
your answer.
Wrong? Absolutely! Illegal? Seemingly Not.
OB in Action

15Making OB Work for Me CHAPTER 1
SAC Capital Advisors, for example, was one of the most successful hedge funds in the
2000s. But the fund and its founder, Steven A. Cohen, were dogged throughout 2012–2016
by suspicions of insider trading, and many traders with ties to SAC were convicted. Before
any formal charges were made against the firm itself or its founder, clients withdrew nearly
$2 billion in assets.44 SAC investors ultimately withdrew even more money, nearly $2 billion
in fines were levied, and the fund was ordered to close.
That didn’t stop Cohen, however, who reopened the company as a “family office,”
named Point72, and traded only his personal fortune. He ultimately settled charges
brought against him personally, without admitting guilt, which resulted in his paying no
personal fines and being banned only from trading other people’s money for two years.45
In early 2018 his ban completed, Cohen opened a new fund and began to raise and invest
other people’s money again.46
“Point72” and Steven A. Cohen are infamous. The financial returns of his former firm
SAC Capital were legendary. Many of the most senior people in the firm were convicted or
pled guilty to financial crimes. How about others in the firm who were perhaps uninvolved
or even unaware of the insider trading?
To make this more real for you, imagine you are interviewing for a job. How would you
explain your past employment history if it included jobs at SAC, Enron, Countrywide, MF
Global, Madoff Investment Securities, Takada, or Theranos? It certainly is possible and
even likely that you did nothing wrong. However, it is likely you would always be concerned
about what others thought or suspected about your involvement. Would suspicions remain
in the back of your future colleagues’ minds? Sometimes ethical choices are clear—right or
wrong—but sometimes they are more complicated and pose dilemmas.
Ethical Dilemmas Ethical dilemmas are situations with two choices, neither of
which resolves the situation in an ethically acceptable manner. Such situations surround
us at work and school and highlight that choosing among available options is not always a
choice between right and wrong. Since such dilemmas are so frequent and potentially conse-
quential, we include an Ethical/Legal Challenge feature at the end of each chapter that asks
you to consider what you might do if confronted with difficult ethical choices at work.
An excellent example is the #MeToo movement. The women who have and will come
forward are confronted with a true dilemma—speak out about the inappropriate, unaccept-
able, and in some instances illegal behavior they have experienced, or say nothing and take
a chance the behavior will continue with themselves and/or others. The first choice can be
Steven A. Cohen’s SAC Capital Advisors eventually shut down after numerous employees pled guilty and/or were convicted of
misconduct. But this didn’t stop Cohen, and he simply opened another firm (Point72 Asset Management) and continued trading.
(Left) Seth Wenig/AP Images; (right) Suzanne DeChillo/Redux Pictures

16 PART 1 Individual Behavior
devastating to their jobs, careers, and reputations, and the second allows the bad behavior
to continue.47 The stories in the headlines have seemingly wrecked the careers of the many
famous and often wealthy men implicated,48 but what we don’t yet know and maybe never
will is what will happen to the opportunities and careers of the accusers and victims? What
costs will be borne by them? Similar considerations are highlighted in the OB in Action
box related to whistleblowers.
An eternal dilemma confronts pharmaceutical companies. On the one hand they need
to make a profit to reward shareholders and invest in research and development; however,
in many instances how much profit is “enough”? What about denying life-saving medicines
to those who cannot afford them? What about charging widely different prices for the
same product to different patients based on their insurance or country? The difficulty with
such dilemmas at least in part has contributed to some of the very public scandals related
to drug pricing in recent years.49
Martin Shkreli earned a dubious reputation for purchasing existing pharmaceuticals with little competition, and then hiking the
prices hundreds or even thousands of percent. Even while in prison on fraud and other charges, he is rumored to be attempting to
run a pharmaceutical company, Illegally.50
(Left) Craig Ruttle/AP Images; (right) Ryan Remiorz/The Canadian Press/AP Images
Whistle-blowing often creates a particularly chal-
lenging type of ethical dilemma. People do wrong,
unethical, and even illegal things at work, and you
and other employees know about the misconduct
and may have even witnessed it firsthand. The
dilemma is what to do about it—should you keep
quiet or do you notify management or the authori-
ties? Sharing your knowledge may indeed seem like
the “right thing to do,” and depending on the situa-
tion you may even profit, but it might cost you dearly.
Whistle-blowers can have many motives. Some
are inspired by their personal sense of fairness or
morality, while others may act out of greed or
revenge. The Government Accountability Project
(GAP) is a whistle-blower protection organization,
whose director, Tom Devine, makes recommenda-
tions for those inclined to speak out.
1. Think of Yourself. What are the potential benefits
and costs to you personally?
2. Test Internally. Raise the Issue within the orga-
nization before going to the authorities or
media. Most organizations have mechanisms in
place (such as hotlines) and chains of com-
mand. Use them, even if you don’t expect them
to work.
3. Recognize That It Will Be Personal. Many
organizations will attack you and your charac-
ter, regardless of what they do about the
issue. Retaliation often occurs, and not
just by the accused and offending indivi-
dual(s),  but by others too.51 HR and legal
departments are there to “protect” the organi-
zation, not you.
The Whistle-Blower’s Dilemma
OB in Action

17Making OB Work for Me CHAPTER 1
What Causes Unethical Behavior? Harvard professor Max Bazerman and Ann
Tenbrunsel of the University of Notre Dame have studied ethical and unethical conduct
extensively. They concluded that while criminally minded people exist in the workplace,
most employees are good people with good intentions. Bazerman and Tenbrunsel contend
that instead of ill intent, cognitive biases and organizational practices “blind managers to
unethical behavior, whether it is their own or that of others.”56 Table 1.2 summarizes their
findings and outlines causes of unethical behavior as well as what we can do to address
that behavior as employees and managers.
Many possible reasons for unethical behavior at work exist, beyond those listed in
Table 1.2, such as:
1. Personal motivation to perform (“I must be No. 1”).
2. Pressure from a supervisor to reach unrealistic performance goals along with threats
for underperforming.
3. Reward systems that honor unethical behavior.
4. Employees’ perception of little or no consequences for crossing an ethical line.57
What about Unethical Behavior in College and When Applying for Jobs? A
study of graduate students in the United States and Canada, including MBAs, found that
Whistle-Blowing for Profit The Dodd-Frank Act of
2010 and some regulatory agencies provide incen-
tives for whistle-blowers who report financial fraud
which is both illegal and unethical. Some can receive
up to 30 percent of any settlement if regulators col-
lect more than $1 million due to the infraction.52 The
largest awards to date were paid in 2018 when $83
million were paid to three whistle-blowers from
Merrill Lynch who reported the misuse of funds.53
The Costs Although whistle-blower protection laws
exist, they often do not sufficiently protect employ-
ees. For instance, a vice president at Chase Bank,
Linda Almonte, was asked to review more than
20,000 past-due credit card accounts before they
were sold to another company. Almonte’s team
reported back to her that nearly 60 percent con-
tained some sort of major error, including discrepan-
cies about the amount or whether the court had
indeed ruled for the bank. Concerned, Almonte went
up the chain of command, flagging the errors and
encouraging management to halt the sale. Instead,
the bank fired Almonte and completed the deal.54
Nobody would hire her, which ruined her profession-
ally and financially. She and her family ultimately
moved to another state, where they lived in a hotel
while she continued to look for work.
Ultimately, Chase was ordered to pay $200 mil-
lion in fines and restitution. The company also set-
tled a suit for an undisclosed amount with Almonte.55
What’s the Lesson? Doing the right thing is just
that, doing the right thing. While it is noble, doing the
right thing can also be very costly. Losing your job or
suffering other forms of retaliation are unfortunately
common, and there isn’t much recourse. Suing your
employer, even if legitimate, rarely results in future
job offers for the whistle-blower.
YOUR THOUGHTS?
1. What can employers do to encourage whistle-
blowers?
2. How can organizations ensure that whistle-
blowers are protected, other than simply making
it a policy (just words)?
3. What can you do as an individual employee
when you witness or become aware of unethical
conduct?
Protesters calling for the protection of
whistleblowers.
Christophe Forestier/Alamy Stock Photo

18 PART 1 Individual Behavior
peer behavior was by far the strongest predictor of student cheating, followed by severity of
penalties and certainty of being reported.58 Students are more likely to cheat if their class-
mates cheat, and/or they think the probability of being caught is small, and if caught the
penalties will not be severe.
However, don’t be too quick to blame this bad behavior on your lying, cheating
classmates. The same researchers acknowledge that there are many other potential rea-
sons for cheating, such as perceived unfairness in grading. It also is possible that stu-
dents see different degrees of cheating—for instance, in homework assignments versus
on exams.
As for job hunting, an analysis of 2.6 million job applicant background checks by
ADP Screening and Selection Services revealed that “44 percent of applicants lied about
their work histories, 41 percent lied about their education, and 23 percent falsified creden-
tials or licenses.”59 Sadly, it’s seemingly getting worse. More recent data shows 85 percent
of employers caught false information on resumes or applications, up from 66 percent five
years earlier.60
Figure 1.2 highlights some of the most common and most outrageous lies told on
resumes. Can you imagine being a recruiter? If you believe these numbers, more than half
the people you interview could be lying to you about something!
TABLE 1.2 Causes of Unethical Behavior at Work and What to Do About It
ILL-CONCEIVED
GOALS
MOTIVATED
BLINDNESS
INDIRECT
BLINDNESS
THE SLIPPERY
SLOPE
OVERVALUING
OUTCOMES
Description:
We set goals and
incentives to pro-
mote a desired
behavior, but they
encourage a nega-
tive one.
We overlook the
unethical behavior
of another when
it’s in our interest
to remain ignorant.
We hold others
less accountable
for unethical
behavior when it’s
carried out through
third parties.
We are less able
to see others’
unethical behavior
when it develops
gradually.
We give a pass to
unethical behavior
if the outcome is
good.
Example:
The pressure to
maximize billable
hours in accounting,
consulting, and law
firms leads to
unconscious
padding.
Baseball officials
failed to notice
they’d created
conditions that
encouraged
steroid use.
A drug company
deflects attention
from a price
increase by selling
rights to another
company, which
imposes the
increases.
Auditors may be
more likely to
accept a client
firm’s questionable
financial state-
ments if infractions
have accrued over
time.
A researcher
whose fraudulent
clinical trial saves
lives is considered
more ethical than
one whose fraudu-
lent trial leads to
deaths.
Remedy:
Brainstorm
unintended
consequences
when devising
goals and
incentives. Consider
alternative goals
that may be more
important to reward.
Root out conflicts
of interest. Simply
being aware of
them doesn’t
necessarily reduce
their negative
effect on decision
making.
When handing off
or outsourcing
work, ask whether
the assignment
might invite
unethical behavior
and take
ownership of the
implications.
Be alert for even
trivial ethical
infractions and
address them
immediately.
Investigate
whether a change
in behavior has
occurred.
Examine both
“good” and “bad”
decisions for their
ethical implications.
Reward solid
decision processes,
not just good
outcomes.
SOURCE: Bazerman, Max H., and Ann E. Tenbrunsel. “Ethical Breakdowns: Good People often Let Bad Things Happen. Why?” Harvard Business Review 89, no. 4
(April 2011). https://www.hbs.edu/faculty/Pages/item.aspx?num=39125.

19Making OB Work for Me CHAPTER 1
Employers are getting more sophisticated and thus are more likely to catch you by uti-
lizing skills assessments as part of the hiring process for some jobs. Also coding or design
skills can be assessed using simple behavioral questions during an interview. If dates and
facts on your social media sites don’t align with your resume and other communications,
this may also raise a red flag. Background checks are another way “alternative facts” are
revealed, including not just contacting the references you provided, but perhaps even col-
leagues from past employers too. Finally, keep in mind you’re never off the hook for the
false information provided during the hiring process.61 Many news stories describe high-
level individuals who have been called out and terminated.
Whether at work or school, some people don’t see their actions as unethical.
Despite being convicted, the top two executives at Enron proclaim their innocence to
this day, Jeff Skilling as well as Ken Lay until he died. Nevertheless, it will be helpful
for you to learn more specifically about your own ethical tendencies. Some people view
ethics in ideal terms, which means that ethical principles or standards apply universally
across situations and time. Others, however, take a relativistic view and believe that
what is ethical depends on the situation. Take Self-Assessment 1.2 to learn about your
own views.
Most Creative Liars
The best lies came from those who claimed to …
Liar, Liar, Résumé on Fire
More than half of hiring and HR managers have caught a lie on a résumé. Here are some
results from a survey of more than 2,500 hiring professionals.
28%
31%
62%
54%
39%
Most Common Lies
200
Academic
degrees
Job titles
Employment
dates
Responsibilities
Skill sets
10060 8040
Be a Nobel
Prize winner.
Be a former CEO
of the company to
which the person
was applying.
Have worked in a
jail (when the person
really was serving
time there).
Have attended
a college that
didn’t exist.
Be employed at
three di�erent
companies in three
di�erent cities
simultaneously.
Be HVAC-certified
and later asked the
hiring manager what
“HVAC” meant.
AC
FIGURE 1.2 Examples and Prevalence of Lies on Resumes
SOURCE: Gurchiek, Kathy. “Liar, Liar, Resume on Fire.” SHRM, September 2, 2015. https://www.shrm.org/resourcesandtools/
hr-topics/talent-acquisition/pages/lying-exaggerating-padding-resume.aspx.

20 PART 1 Individual Behavior
What Can You Do about It? You have or likely will witness questionable or even
blatantly unethical conduct at work and you may be tempted to think, This is common
practice, the incident is minor, it’s not my responsibility to confront such issues, or loyal workers
don’t confront each other. While such rationalizations for not confronting unethical conduct
are common, they have consequences for individuals, groups, and organizations. What can
you do instead? Here are a few suggestions:
1. Recognize that it’s business and treat it that way. Ethical issues are business issues, just
like costs, revenues, and employee development. Collect data and present a convinc-
ing case against the unethical conduct just as you would to develop a new product or
strategy.
2. Accept that confronting ethical concerns is part of your job. Whether it is explicit in
your job description or not, ethics is everyone’s job. If you think something is ques-
tionable, act.
3. Challenge the rationale. Lapses occur despite policies against them. If this is the case,
then ask, “If what you did is common practice or OK, then why do we have a policy
forbidding it?” Alternatively, and no matter the rationale, you can ask, “Would you be
willing to explain what you did and why in a meeting with our superiors, customers, or
during an interview on the evening news?”
4. Use your lack of seniority or status as an asset. While many employees rely on their
junior status to avoid confronting ethical issues, being junior can instead be an advan-
tage. It enables you to raise issues by saying, “Because I’m new, I may have misunder-
stood something, but it seems that what you’ve done may be out of bounds or could
cause problems.”
5. Consider and explain long-term consequences. Many ethical issues are driven by temp-
tations and benefits that play out in the short term. Frame and explain your views in
terms of long-term consequences.
6. Suggest solutions—not just complaints. When confronting an issue, you will likely be
perceived as more helpful and be taken more seriously if you provide an alternate
course or solution. Doing so will also make it more difficult for the offender to disre-
gard your complaint.62
Now that you have a good understanding of the importance of ethics at school and
work, we’ll turn our attention to using OB to solve problems. The ability to apply OB to
solve problems is a major part of what makes this knowledge so valuable.
Assessing My Perspective on Ethics
Please be prepared to answer these questions if your instructor has assigned Self-
Assessment 1.2 in Connect.
1. Are your views more idealistic or more relativistic?
2. What do you think about students cheating on homework assignments in
school? What about cheating on exams?
3. Are your answers consistent with your score? Explain.
4. Suppose you’re a manager. What does your score imply about the way you
would handle the unethical behavior of someone you manage? What about your
boss’s unethical behavior?
SELF-ASSESSMENT 1.2 CAREER READINESS

21Making OB Work for Me CHAPTER 1
A problem is a difference or gap between an actual and a desired state or outcome,
and problem solving is a systematic process for closing such gaps.
Problem-solving skills are increasingly needed in today’s complex world. Loren Gary,
former associate director at Harvard’s Center for Public Leadership, supports this asser-
tion: “The ability to identify the most important problems and devising imaginative
responses to them is crucial to superior performance in the modern workplace, where
workers at all levels of the organization are called upon to think critically, take ownership
of problems, and make real-time decisions.”63
For example, Jeff Bezos, CEO and founder of Amazon, has long downplayed the
importance of meeting quarterly numbers to please Wall Street investors. He instead
defines his problem as delivering superior service to customers, today, tomorrow, and for-
ever. His problem-solving efforts are thus more likely to focus on innovative products and
delivery times than on profit margins and earnings per share.
To help increase your personal performance and well-being at school, work, and home,
we created an informal approach to apply OB tools and concepts to solving problems. It’s
simple, practical, and ready to use now!
A 3-Step Approach
There are many approaches to problem solving, and knowing
this, it was important for us as professors and authors to pro-
vide an approach that is both practical and effective across a
variety of situations. The 3-Step Approach presented in this
book is the result of our combined consulting experience of
applying our knowledge of OB to help real-world employees
and organizations solve problems. Our intent is to help you
apply your OB knowledge and tools to boost your own effec-
tiveness in school, at work, and in life.
Basics of the 3-Step Approach Here are the three
steps in our applied approach to problem solving.
Step 1: Define the problem. Most people identify prob-
lems reactively—after they happen—which causes
them to make snap judgments or assumptions. These
are often plagued by a reliance on common sense
and result in defining the problem incorrectly, which
in turn leads to identifying inaccurate causes and
THE BIGGER PICTURE
Now that you know that OB is not just common sense, the challenge is to find a way to orga-
nize and apply its many concepts and theories. In this section, we explain how you can apply
OB to effectively solve problems at work, at school, and in your life. We use a 3-Step Problem-
Solving Approach.
1.3 OB AND PROBLEM SOLVING
Utilize OB to solve
problems and
increase your
effectiveness.
LO 1-3
Few CEOs have faced more scrutiny in the recent past than
Facebook’s Mark Zuckerberg. He has been challenged
over concerns about privacy, sharing and selling access
and data, and allowing the platform to influence election
outcomes.
Saul Loeb/Getty Images

22 PART 1 Individual Behavior
ineffective solutions. All of us could benefit from Albert Einstein’s comment, “If
I were given one hour to save the planet, I would spend 59 minutes defining the
problem and one minute resolving it.” Let’s take Professor Einstein’s advice and
learn how to improve our ability to define problems throughout this course and
in your professional life.
• Define problems in terms of desired outcomes, then test each one by asking, “Why is
this a problem?” First think of what you want, what is the desired outcome or state,
then compare it to what you have or the current situation. It is important to resist
snap judgements and quickly conclude you “know” the problem and underlying
causes. You are better served to start with available facts and details. Then ask your-
self, “Why is this gap a problem?” For example, suppose you are disengaged from
your work. How do you know this? What is the evidence? Perhaps you no longer go
out of your way to help your coworkers and stop responding to e-mails after work
hours. You’ve defined your problem using evidence (or data). Now ask, “Why is this
a problem?” Because when you are engaged, your coworkers benefit from you shar-
ing your knowledge and experience. Coworkers and customers benefit from your
responsiveness and willingness to respond to e-mails on their timeline, even when it
isn’t necessarily convenient for you (after hours). We find that asking “why” multiple
times helps refine and focus your definition of the problem.
Step 2: Identify potential causes using OB concepts and theories. Essential to effective
problem solving is identifying the appropriate underlying causes. So far you have
OB concepts like the contingency perspective and ethics—and many more are coming—
to use as potential causes. The more knowledge you have to choose from, the more
likely you will identify the appropriate cause(s) and recommendation(s). To improve
your ability to accurately identify potential causes, we provide the following tip
for Step 2.
• Test your causes by asking, “Why or how does this cause the problem?” Once you
have confidently defined the problem in Step 1—disengagement—you need to
identify potential causes (Step 2). Ask, “Why am I disengaged?” One common
reason, backed by science, is that you perceive you were evaluated unfairly in your
recent performance review. “Why or how did this cause disengagement?” If you
feel unappreciated for what you’ve done, then you are unmotivated to go the extra
mile to help your coworkers or customers. Asking “why” multiple times and fol-
lowing the line of reasoning will lead you to define and identify problems and
causes more accurately.
Step 3: Make recommendations and (if appropriate) take action. Whether planning
and/or implementing recommendations, it is important to map or link recom-
mendations to the causes and problems. The following is a simple and helpful
suggestion.
• Map recommendations onto causes. Be certain to link recommendations to causes
which are linked to the problem. The rationale is good recommendations address
the causes, and when causes are removed or improved the underlying problem is
solved or at least mitigated. Returning to our engagement example, the perceived
fairness of performance reviews can be improved if managers use multiple raters,
such as peers and the employee him- or herself (you’ll learn about multiple raters
in Chapter 6). Now, map or link this recommendation to the cause (an unfair
performance review) to ensure it is appropriate and will effectively address the
cause identified in Step 2 and the problem defined in Step 1. Fixing the cause
eliminates the problem.
How This Problem-Solving Approach Develops Throughout the Book As
you learn more OB concepts and tools, the 3-Step Approach will become richer and more
useful. Later, in Chapter 11, you’ll learn this approach to problem solving is an abbreviated
version of the rational approach to decision making.

23Making OB Work for Me CHAPTER 1
Tools to Reinforce My Problem-Solving Skills
Because of our strong belief in the value of problem solving at school, work, and life
more generally, we created numerous opportunities throughout the book to help
you master this skill by applying OB. Each chapter, for instance, includes the following
features:
• Problem-Solving Application Mini-Cases—These mini-cases present a problem or
challenge for you to solve. You are asked to apply the 3-Step Approach to each.
• Self-Assessments—Validated instruments allow you to immediately assess your per-
sonal characteristics related to OB concepts, frequently with a personal problem-
solving focus (see below).
• End-of-Chapter Problem-Solving Application Cases—The full-length cases require you
to apply the OB knowledge gained in a particular chapter to define the problem,
determine the causes, and make recommendations.
• Ethical/Legal Challenge—Mini-cases present provocative ethical dilemmas in today’s
workplace. You are asked to consider, choose, then justify different courses of
action.
How good are your problem-solving skills? For a preliminary idea complete Self-
Assessment 1.3 which measures your problem-solving skills and will help you
understand:
• What types of things you consider when solving problems.
• How you think about alternate solutions to problems.
• Which approach you prefer when solving problems.
Tip: Take this assessment again at the end of the course to see whether your skills have
improved.
Assessing Your Problem-Solving Potential
Please be prepared to answer these questions if your instructor has assigned
Self-Assessment 1.3 in Connect.
1. What do items 1–3 tell you about your ability to define problems?
2. Do your scores on items 4–6 match your perceptions of your ability to generate
effective solutions?
3. Using the individual items, describe the pros and cons of your tendencies
toward implementing solutions.
SELF-ASSESSMENT 1.3 CAREER READINESS

24 PART 1 Individual Behavior
1.4 STRUCTURE AND RIGOR IN SOLVING PROBLEMS
It’s easier to understand and apply OB if you categorize or organize your knowledge as you
learn it. The first and most fundamental distinction is between elements that are related to
you and those related to the situation.
The Person–Situation Distinction
OB concepts and theories can be classified into two broad categories—person factors and
situation factors. The person–situation distinction is foundational to OB.64
• Person factors are the infinite characteristics that give individuals their
unique identities. These characteristics combine to influence every aspect of your
life. In your job and career, they affect your goals and aspirations, the plans you
make to achieve them, the way you execute such plans, and your ultimate level of
achievement. Part One of this book is devoted to person factors.
This is simple and makes perfect sense, but as we all know reality is seldom simple.
Things get in the way, and these “things” often are situation factors.
• Situation factors are all the elements outside us that influence what we do,
the way we do it, and the ultimate results of our actions. A potentially infinite
number of situation factors can either help or hinder your efforts and outcomes,
such as job satisfaction, performance, and turnover.65 This is why situation factors
are fundamental to OB and critically important to your performance. Parts Two and
Three of this book are devoted to situation factors.
Which Influences Behavior and Performance More—Person or Situation
Factors? Researchers and managers have debated for decades whether person or situ-
ation factors are more influential. They ask, for instance, about the relative impact of
“nature versus nurture” and whether leaders are “born or made.” We address these debates
in Chapters 3 and 13, respectively.
Many believe that some people are by their nature better suited than others to perform
well at work (“born winners”). In contrast, others believe some people are clearly better in
a given job or situation. No particular person could outperform every other person in every
possible job! No one is the best at everything.
This second view is supported by research in psychology and OB. The interactional
perspective states that behavior is a function of interdependent person and situa-
tion factors.66 The following quotation captures this reality: “Different people may per-
ceive similar situations in different ways and similar people may perceive different
situations in the same way.”67
THE BIGGER PICTURE
When struggling to solve a problem, have you ever felt the solution was beyond your reach?
Sometimes the solution is a matter of organizing or structuring the problem and its ele-
ments. OB can help. We’ll show you useful tools to assist in organizing and applying your OB
knowledge as it grows. You can use these same tools to solve problems more rigorously and
more effectively.
Explain the practical
relevance and power
of OB to help solve
problems.
LO 1-4

25Making OB Work for Me CHAPTER 1
People and Situations Are Dynamic People change, situations change, and the
two change each other. To illustrate:
• People bring their abilities, goals, and experiences to each and every situation,
which often changes the situation.
• Conversely, because situations have unique characteristics, such as opportunities,
rewards, and coworkers, they change people. What you value in a job will likely dif-
fer between now and the time you are trying to make a move to senior management.
• It is also true the current job market and employer expectations differ from those
at the height of the technology bubble in the late 1990s or those in of the Great
Recession of 2007–2009. In the first scenario employees changed, and in the sec-
ond the situation changed.
• Finally, your manager—a situation factor—can change what you do, how you do it,
and your effectiveness. You too can exert influence on your manager. In fact, many
of the concepts and tools in this book can be applied to manage up (influence your
manager and other superiors).
What is the bottom-line for your personal effectiveness? You need to understand both
person and situation factors and the interplay between the two. Knowledge and consideration
of one without the other is insufficient.
How Does the Person–Situation Distinction Help Me Apply OB Knowledge?
Categorizing your knowledge in terms of person and situation factors is immensely helpful
when applying OB knowledge to solve problems. Consider downsizing.
Many companies restructure indiscriminately and cut a large percentage from their
employee ranks, such as a 20 percent across the board reduction. Assume you and five
coworkers, all of whom do the same job, are downsized. Each of you experience the same
event, but your reactions will vary. You might not feel too bad if you didn’t like the job and
were considering going to graduate school anyway. Two of your coworkers, however, may
be devastated and depressed.
Aside from the cyclical nature of its industry, U.S. automakers have felt intense competitive pressures
for decades, resulting in persistent waves of layoffs—often tens of thousands per year. These industry
and economic characteristics are important situation factors for these employees.
(Left) Jim West/Alamy Stock Photo; (right) Darren McCollester/Getty Images

26 PART 1 Individual Behavior
Nevertheless, because the downsizing event was the same for all of you (the situation
factors were identical), we can assume that the differences in everyone’s reactions were due
to things about you as individuals (person factors), such as other job opportunities, how
much each of you liked the job you just lost, your financial situation, and whether you have
kids, mortgages, or a working partner. The person–situation distinction, therefore, provides
a means for classifying OB concepts and theories into causes of behavior and problems.
The Three Levels of OB
We explained above that OB distinguishes among three levels at work: individual, group/
team, and organizational. Let’s think about the varied reasons people quit their jobs as an
Illustration of how considering levels helps in solving real-world problems.
• Some people quit because their job doesn’t fulfill what they value at work, for exam-
ple, providing a challenging and stimulating work (an individual-level input).
• Others quit because of conflict with their boss or because they have nothing in com-
mon with their coworkers (a group/team-level process).
• A common reason people quit is a faulty reward system which unfairly distributes
raises, bonuses, recognition, and promotion opportunities (an organizational-level
process).
Understanding and considering levels increases your problem-solving effectiveness
and performance. This is highlighted in the problem-solving example in Section 1.6.
Applying OB Concepts to Problem Solving
Nothing causes more harm than solving the wrong problem. Assume, for instance, that
several people in your department have quit in the past year. What could be the reason? The
person–situation distinction allows you to consider unique individual factors as well as situ-
ation factors that might be the source of the problem. Considering the levels of individual,
group, and organization will allow you to look at each for possible causes. For example:
• Person factors. Do your departing coworkers have something in common? Is there
anything about their personalities that makes working in your department unfulfill-
ing, for example, a preference to work collaboratively rather than independently?
What about their ages? Gender? Skills?
• Situation factors. Has the job market improved and now offers more attractive
opportunities at better wages elsewhere?
• Individual level. Has the job itself become boring and less meaningful or rewarding
to the employees who quit?
• Group/team level. Did a new manager take over your department, one who micro-
manages and is less interested in developing you and your coworkers? How does
turnover in your department compare to that in other departments in the organiza-
tion? Depending on the answers, the new manager or other factors may explain
these differences?
• Organizational level. Has the organization changed or restructured such that the
most desirable positions are now at the headquarters in another state?
By following this approach and asking these questions, you widen your focus and
review a larger number of possible causes, increasing the likelihood you will identify the
right problem. If you don’t quite follow this example, then have no fear because we’ll ana-
lyze a turnover scenario in the last section of this chapter and provide a more detailed
application. Stay tuned!
We now move on to the Organizing Framework for Understanding and Applying OB.
This tool is not only helpful for learning OB, but it is incredibly valuable when using OB to
solve problems.

27Making OB Work for Me CHAPTER 1
Given your knowledge of the person–situation distinction and levels (individual, group/
team, and organizational), you are now ready to learn about the Organizing Framework for
Understanding and Applying OB. We created this framework (see Figure 1.3) for two rea-
sons. The first is to help you organize OB concepts and theories into three causally related
categories–Inputs, Processes, and Outcomes. Students often ask, “How do these concepts
fit together?” The Organizing Framework helps answer this question. The second reason
for creating the Organizing Framework is its value in helping to solve problems. It enhances
your problem-solving skills and marketability to employers. Now let’s explore this valuable
tool in more detail.
A Basic Version of the Organizing Framework
The foundation of the Organizing Framework is a systems model wherein inputs influ-
ence outcomes through processes. The person and situation factors are inputs, and pro-
cesses and outcomes are divided into the three levels of OB—individual, group/team, and
organizational.
This framework implies that person and situation factors are the initial drivers of all
outcomes, such that inputs affect processes and processes affect outcomes. This is a
dynamic process which means many outcomes will in turn affect inputs and processes. See
Figure 1.3. The relationships between outcomes at one point in time and inputs and pro-
cesses at another are shown as feedback loops in the Organizing Framework (the black
arrows at the bottom of the figure).
THE BIGGER PICTURE
You’re about to learn about the single best tool for understanding and applying OB’s many
concepts and tools—the Organizing Framework for Understanding and Applying OB. The
framework will help tremendously in improving your problem-solving abilities at school, work,
and in your larger life space. In the final section, we give you practical and effective guidance
on how to choose among alternate solutions to problems.
1.5 THE ORGANIZING FRAMEWORK FOR
UNDERSTANDING AND APPLYING OB
Utilize the Organizing
Framework for
Understanding and
Applying OB.
LO 1-5
FIGURE 1.3 Organizing Framework for Understanding and Applying OB
©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors.
INPUTS PROCESSES OUTCOMES
Personal Factors
Situation Factors
Individual Level
Group/Team Level
Organizational Level
Individual Level
Group/Team Level
Organizational Level

28 PART 1 Individual Behavior
As you work through this book notice that each chapter begins with a version of the
Organizing Framework that helps introduce the concepts discussed in that particular chap-
ter. Each chapter repeats the same version of the framework at the end as part of the chap-
ter review. If you add up the content of all the chapters, you’ll end up with something that
looks like the fully populated or complete Organizing Framework shown in the next sec-
tion of this chapter. The fully populated framework is a useful preview of all you will learn,
a powerful tool for solving problems throughout the course, and an effective review tool for
preparing for a comprehensive final exam.
By definition, frameworks (and models) are simplifications of reality and necessarily
exclude information. This means the complete Organizing Framework will not show every
OB concept that might affect employee behavior, performance, and other outcomes. How-
ever, the basic elements of the framework will help you understand, organize, and apply
any OB topic you encounter. The following OB in Action box illustrates the value of the
Organizing Framework and its components—inputs, processes, and outcomes. Be sure to
answer the “Your Thoughts?” questions, as they will show you how to apply your new OB
knowledge and tools.
Applying OB
family interested in cats, dogs, and candy. At one facil-
ity more than 200 employees bring their dogs to work
each day. (Leash rules apply.)71
This family environment flows from the founding
Mars family, which still tightly controls the company
according to the “Five Principles of Mars”: quality,
responsibility, mutuality, efficiency, and freedom.
Employees can recite these principles and live them.72
You likely associate Mars Company with its candy
products (Snickers, M&Ms, Lifesavers), for which it’s
been known for more than 100 years. But what you
likely don’t know is that today about half of the com-
pany’s $35 billion in revenues and more than half of its
115,000 member workforce is dedicated to pet foods,
such as Pedigree and Whiskas, and pet care, Banfield
Pet Hospitals and Veterinary Centers of America (VCA),
to name but a few. Mars is not only in the business of
catering to your sweet tooth and your sweet dog or
cat, but it also puts a high priority on catering to its
employees.68 The company made the Fortune 100
Best Companies to Work For again in 2019 (#98),69
and the Organizing Framework of Understanding and
Applying OB can help us understand how they do It.
Inputs The environment at Mars lacks the perks
touted by many tech companies—no Foosball tables,
no free gourmet lunches, and no premier health clubs.
More than this, some work practices are downright old
school. For instance, all employees, including the pres-
ident, have to punch a time clock each day and are
docked 10 percent of their pay for the day if late.70
But what Mars may seem to lack in style it makes
up for with its culture. Former President Paul S.
Michaels explains how the company aligns its values
and practices by asking: “Does it add value for the
consumer to pay for marble floors and Picassos?” If it
doesn’t, then the company doesn’t provide it. Employ-
ees seem to love the place and have very positive rela-
tionships at work; many families have three generations
working at Mars. The culture seems to be one big
Mars: The World We Want Tomorrow
James R. Martin/Shutterstock

29Making OB Work for Me CHAPTER 1
Let’s now consider the details of the Organizing Framework and apply it to the 3-Step
Problem-Solving Approach.
Using the Organizing Framework
for Problem Solving
You can use the Organizing Framework at all three steps of the problem-solving process to
add rigor, intelligently apply your OB knowledge, and in turn improve your performance.
Step 1: Define the problem. Problems can be defined in terms of gaps in outcomes at
three levels in the Organizing Framework.
Step 2: Identify causes. Causes are often best thought of in terms of inputs (person or
situation) or processes at various levels (individual, group/team, organizational).
Step 3: Generate recommendations. Consider the most appropriate recommendations
using your OB knowledge and tools, then map these onto the causes (inputs or
processes).
The ultimate effectiveness of your problem-solving efforts will be determined by the
impact of your recommendations on the underlying causes and problem. Let’s discuss
this next.
Selecting a Recommendation and Taking Action (if appropriate) Selecting
recommendations (solutions) is both art and science. In fact, this is the decision-making
part of the problem-solving process and is discussed in greater detail in Chapter 11. Choos-
ing the appropriate course of action is critically Important as research shows nearly
50 percent of decisions fail.78 Part of the explanation is some managers rely largely on
intuition (also discussed in Chapter 11) and experience. While these approaches can work,
others use more analytical or systematic methods to select a solution.
Don’t Forget to Consider Constraints As a matter of practicality, most people
lack the time, knowledge, or access to data to routinely follow such a rigorous procedure.
Therefore, your selection most often requires you to consider various constraints—on time,
money, your own authority, and information—that can occur at different levels. Let’s now
consider a few practical pointers on how to select the best solution.
Applied Approaches to Selecting a Solution
You can save time and hassle with the following practical advice from renowned problem-
solving expert and professor Russell Ackoff. Ackoff recommends first deciding how
The company believes in and fosters sustainable
practices across its businesses, including its suppliers
and product development. For Instance, Mars created
a product to address malnutrition in collaboration with
the Tata Group In India.75
Outcomes Mars posts a very low turnover rate
(5 percent),76 a sign that employees are highly satis-
fied with their jobs. And the fact that the company has
managed to grow consistently for decades and
remain private is compelling evidence of its strong
financial performance. Moreover, the CEO has plans
to double revenues in the next 10 years and to do so
sustainably.77
The focus on values reflects the purpose-driven nature
of Mars and its leadership. Current CEO, Grant Reid,
put It succinctly: “The way we do business today cre-
ates the world we want tomorrow.”73
Processes While some practices may seem frugal,
the company reportedly awards bonuses of 10 to 100
percent of employees’ salaries. The company also
invests heavily in the community via its Mars Volun-
teers and Ambassador Programs. For instance, associ-
ates at their Banfield facilities impacted more than
144,000 people and pets In 2018, and other associ-
ates assisted those affected by earthquakes and hur-
ricanes in Mexico and Puerto Rico, respectively.74

30 PART 1 Individual Behavior
complete a response you are looking for. Do you want the problem to be resolved, solved, or
dissolved?
• Resolving problems is arguably the most common action managers take and simply
means choosing a satisfactory solution, one that works but is less than ideal. Putting
a “doughnut” or temporary spare tire fixes a flat, but it is certainly not ideal and is
unlikely to last.
• Solving problems is the optimal or ideal response. For instance, you could buy a
new, high-quality, full-size spare to keep in your trunk (not the typical doughnut or
the “run-flats” that manufacturers frequently provide).
• Dissolving problems requires changing or eliminating the situation in which the
problem occurs. Keeping with our example, the city you live in could build and uti-
lize effective public transportation and remove the necessity of having cars (and
tires) altogether.79
Making this decision first helps guide your choice among alternatives. In addition, it
helps you decide what you need, whether it is realistic, and what level of effort and
resources to use.
Basic Elements for Selecting an Effective Solution
After deciding whether to resolve, solve, or dissolve the identified problem, you need to
select the most effective solution. A problem-solving expert says: “The essence of success-
ful problem solving is to be willing to consider real alternatives.”80 To help you choose
among alternatives identified in Step 2, we distilled three common elements that will help
you qualify the best solution:
1. Selection criteria. Identify the criteria for the decision you must make, such as its
effect on:
• Bottom-line profits.
• You and your classmates or coworkers.
• Your organization’s reputation with customers or the community.
• Your values.
• Ethical implications.
2. Consequences. Consider the consequences of each alternative, especially trade-offs
between the pros and the cons, such as:
• Who wins and who loses.
• Ideal vs. practical options.
• Perfection vs. excellence.
• Superior vs. satisfactory results.
3. Choice process. Decide who will participate in choosing the solution. (If more than
one person, agree on the method. Will you vote? Will the vote be public or secret?
Unanimous or simple majority?):
• You
• Third party
• Team
In every case, consider the necessary resources, including which people will be key
sources of support for (and resistance to) your ultimate selection. Consider who can help
and who can hurt your efforts—what’s in it for them?
Putting it all together, the OB knowledge and tools you’ll learn in this book will help
tremendously in selecting and implementing the best solution given the situation you face.
The final section of this chapter provides a preview of what you will learn in this book,
along with an example application of the Organizing Framework and the 3-Step Problem-
Solving Approach.

31Making OB Work for Me CHAPTER 1
We wrote this preview to serve three primary functions: (1) It is a sneak peek and fore-
shadows all you will learn in this book; (2) it illustrates how to use the Organizing Frame-
work when solving problems with the 3-Step Problem-Solving Approach; and (3) it serves
as a review for a comprehensive final exam for this course.
We begin this section by briefly reviewing the 3-Step Problem-Solving Approach and
the components of the Organizing Framework. We will apply these tools to an example
problem-solving scenario. The purpose is to be a tutorial of how you are expected to apply
your knowledge and these tools throughout the rest of the book.
The 3-Step Problem-Solving Approach
This chapter began by demonstrating that common sense often is not common practice.
We instead showed you how to think critically and add rigor and structure to your problem
solving by using three steps, recapped as follows:
Step 1: Define the problem. To be an effective problem solver, you must define the
problem accurately. It all starts here.
Step 2: Identify potential causes using OB concepts and theories. The many OB theo-
ries and concepts you will learn are extremely useful in helping identify the underly-
ing causes of the problem you defined in Step 1.
Step 3: Make recommendations and (if appropriate) take action. Once you have identi-
fied the problem and its causes, you can plan and implement recommendations,
applying your OB knowledge and tools.
Improving your problem-solving abilities will lead to better performance for you, your
team, and your organization. This is important given that problem solving is one of the
most sought after skills of employers across jobs and industries.
The Organizing Framework
Figure 1.4 illustrates a summary version of the Organizing Framework. It shows the OB
concepts and theories you will learn and includes chapter references for finding details
about them. The framework further illustrates how the various concepts are related to each
other: Inputs affect processes, which in turn influence outcomes. Remember, problems are
generally identified by looking for gaps in desired versus actual outcomes, and causes can
be found in inputs and processes.
Here are a few important insights from Figure 1.4.
• There are more person factors that affect processes than situation factors. Pay par-
ticular attention to person factors when looking for causes of problems.
• Solving problems requires you to think across levels. Notice the many different con-
cepts listed under individual, group/team, and organizational processes and outcomes.
• OB concepts are both inputs and processes. Leadership is a good example. This
reinforces the dynamic nature of organizational behavior and underscores the con-
sideration of connections between inputs and processes when solving problems.
THE BIGGER PICTURE
This section provides a high-level overview of what you will learn in this book, and it shows a
summary Organizing Framework for Understanding and Applying OB. A thorough application of
the 3-Step Problem Solving Approach is also provided to illustrate its power and applicability.
1.6 PREVIEW AND APPLICATION OF
WHAT YOU’LL LEARN
Apply the Organizing
Framework to the
3-Step Problem-
Solving Approach.
LO 1-6

32 PART 1 Individual Behavior
INPUTS PROCESSES OUTCOMES
Personal Factors
(associated chapters)
Hard and soft skills: 1
• Ethical behavior: 1
• Values: 2
• Attitudes: 2
• Intelligence: 3
• Cognitive abilities: 3
• Personality: 3
• Core self-evaluations: 3
• Emotional intelligence: 3
• Stereotypes: 4
• Diversity: 4
• Motivation: 5, 6, 7
• Positive OB: 7
• Emotions: 3, 7
• Mindfulness: 7
• Psychological capital: 7
• Communication: 9
• Social media: 9
• Decision making: 11
• Creativity: 11
• Resistance to change: 16
Situation Factors
• Ethical behavior of others:
1, 10, 12
• Leadership: 1, 8, 13
• Job design: 5
• Competition, regulators, and
leadership: 6
• Human resource policies,
practices, and procedures:
6, 9, 14
• Relationship quality: 8
• Decision making: 11
• Organization culture and
climate: 7, 10, 13, 14, 15
• Mentoring: 14
• Organizational design: 15
• Forces for change: 16
• Resistance to change
(coworker and
organizational): 16
• Organizational mission and
vision: 16
Individual Level
(associated chapters)
• Emotions: 3, 7
• Perceptions: 4, 6
• Attributions: 4
• Motivation: 5, 6, 7
• Job design: 5
• Performance management
practices: 6
• Communication: 7, 8, 9
• Trust: 8
• Decision making: 11, 15
• Creativity: 11
• Leadership: 1, 8, 13
• Mentoring: 14
Group/Team Level
• Group/team dynamics:
3, 4, 8, 11, 14, 16
• Communication: 7, 8, 9
• Group roles and norms: 8
• Group development: 8
• Trust: 8
• Team effectiveness: 8
• Conflict and negotiation: 10
• Decision making: 11
• Creativity: 11
• Power, influence, and
politics: 12
• Structural and psychological
empowerment: 12
• Impression management: 12
• Organizational culture and
climate: 7, 10, 13, 14, 15
• Organizational socialization: 14
• Mentoring: 14
• Organizational design: 15
Organizational Level
• Managing diversity: 4
• Human resource policies,
practices, and procedures:
6, 8, 14
• Communication: 7, 8, 9
• Organizational culture and
climate: 7, 10, 13, 14, 15
• Decision making: 11
• Creativity: 11
• Leadership: 1, 6, 8, 13
• Organizational socialization: 14
• Organizational design: 15
• Leading and managing
change and stress: 16
Individual Level
(associated chapters)
• Task performance: all but 15
• Work attitudes: all but 11, 15
• Turnover: all but 11, 15
• Career outcomes:
1, 3, 4, 8, 10, 11, 12, 13, 14, 16
• Well-being/flourishing:
2, 3, 4, 7, 13, 16
• Citizenship behavior/
counterproductive behavior:
2, 5, 6, 7, 8, 10, 12, 13, 16
• Intrinsic and extrinsic
motivation: 5
• Creativity: 6, 7, 8, 10, 11, 13, 15
• Physical health: 7
• Stress (physical and
emotional): 12, 15, 16
• Resistance to change: 15, 16
• Accidents: 16
• (Un)Ethical behavior: all but
3, 7, 15
Group/Team Level
• Group/team performance: all
but 1, 2
• Group satisfaction:
3, 4, 6, 8, 9, 10, 12, 13, 16
• Group/team cohesion and
conflict: 6, 7, 8, 10, 11, 12, 14, 16
• Group/team collaboration:
13, 15
• Innovation: 6, 8, 10, 11, 14, 15, 16
• Resistance to change: 16
• (Un)Ethical behavior: all but
3, 7, 15
Organizational Level
• Accounting/financial
performance: 2, 3, 6, 7, 8, 9,
10, 11, 12, 13, 14, 15, 16
• Customer service/satisfaction:
2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,
14, 16
• Survival: 3, 6, 16
• Reputation: 3, 4, 6, 9, 10, 12, 16
• Employer of choice: 4, 6
• Innovation: 6, 8, 10, 11, 14, 15, 16
• Organizational effectiveness:
7, 15, 16
• Legal liability: 9, 11, 12
• Product/service quality: 14
• Operational efficiency: 14, 15
• (Un)Ethical behavior: all but
3, 7, 15
©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors.
FIGURE 1.4 Summary of Organizing Framework for Understanding and Applying OB

Technology: A Situation Factor That Affects Your Performance
Since the Blackberry Quark in 2003, the iPhone 2007,
and the first Android in 2008, smartphones have
become extensions of our hands, which means they
go with us and are used everywhere.81 Approximately
31 percent of adults with smartphones report being
online nearly constantly as do 39 percent of those
18–29 years old.82 Many employers allow employees
to bring-their-own-devices (BYOD) and access work
e-mail and other resources via their personal phones.
Walmart, for instance, adopted such a policy and now
allows employees to check inventory, prices, review
sales data, and sign in and out for their shifts from their
own devices. This is a reversal of previous policies that
banned the use of personal devices at work.83
Benefits. Walmart obviously expects to save
money and boost performance, and they like other
employers are promoting the benefits to employ-
ees. Employers claim smartphone use at work, and
connectivity more generally, provides employees
greater flexibility in terms of where they work, how,
and when.84 Flexible work arrangements, such as
telecommuting, have ballooned in the past decade
as a result and are now benefits highly valued by
employees. On the surface this scenario appears to
be a win-win, but the benefits are not without costs.
Costs. Besides privacy and security concerns,
which are very real, always being connected has real
costs. The statistics are overwhelming and troubling.
For instance, more than half of Americans don’t take
all of their allotted vacation time. This happens for
Martin Novak/Shutterstock
Problem-Solving Application
33Making OB Work for Me CHAPTER 1
• Knowledge about OB is important. Simply look at the outcomes box! Over two
dozen different outcomes are affected by OB-related inputs and processes. The
framework further shows the frequency with which various outcomes are important
to managers. Notice the number of chapters where individual task performance,
work attitudes, turnover, group/team performance, innovation, accounting/financial
performance, and customer service/satisfaction are discussed. And more personally,
observe that career outcomes (an individual-level outcome) are related to concepts
included in nearly every chapter.
Using the Framework for Learning When you first read or learn about a new concept
we recommend you attempt to categorize it in terms of whether it is a person factor, such as
values and work attitudes (Chapter 2), personality and emotions (Chapter 3), perceptions and
diversity (Chapter 4); or a situation factor like human resource policies, practices, and proce-
dures (Chapter 6), leader behavior (Chapter 13), and organizational culture (Chapter 14). Doing
this will improve your understanding and help you learn how they are related to each other.
We also encourage you to consider the issue of levels as you progress in learning about
OB. Not only do many OB concepts exist at particular levels, such as personality at the
individual level, but some concepts like performance management and conflict are pro-
cesses that can affect outcomes across all levels.
Breadth and Power of OB You should conclude from this that OB matters in busi-
ness. More importantly it matters to you—your job and your career. And anyone (other
textbooks, classmates, coworkers, bosses) who says OB is simply common sense, or that it
only affects employee commitment, satisfaction, and performance, clearly does not under-
stand the full and true power and value of OB. At the conclusion of this course you’ll know
better and won’t make such mistakes!

34 PART 1 Individual Behavior
Hypothetical Problem-Solving Scenario
Observation and practice are two excellent ways to learn. Let’s do both. We will work
through a problem-solving scenario and show you how to use the Organizing Framework
and the 3-Step Approach.
The scenario involves the problem of employee turnover, an individual-level outcome
we used earlier in the chapter. For this application assume you are a valued junior employee
who is thinking of quitting, and many other talented junior employees have quit your
department in the past couple of years.
Step 1: Define the Problem To reiterate, a problem is a gap between a current situation and a
desired situation or outcome. First review the outcomes box in the Organizing Framework,
because many problems are gaps between one or more current and desired outcomes. For
instance, in this hypothetical scenario your organization has a turnover problem. Why is
this a problem? Because the company wants to have the appropriate number of talented
people in its most crucial jobs. Note that defining the problem this way is different from
saying more people quit your company this year than last year, or that your employer has
higher turnover than its competitors. (Note: If your worst performers quit instead of your
best, then you could argue your organization is better off due to the reduction in “dead
wood” rather than having a problem.) It isn’t necessarily a problem to lose people, espe-
cially underperformers or those with obsolete skills, but if your organization’s most valu-
able and high-performing people (like you) quit, then a problem exists. This sort of
reasoning highlights the importance of defining the problem accurately.
Now that we’ve confidently completed the first step and defined the problem
accurately—turnover of talented, high-performing, junior employees—let’s continue the
process and identify the potential causes of this turnover problem.
Step 2: Use OB to Highlight the Causes While people quit for a variety of reasons, a good
place to start is to consider both person and situation inputs, then various processes
many reasons, but the most common are concerns (1)
work will pile up while away, (2) only they can do their
jobs, and (3) they could be replaced while away.85
Employees who don’t unplug are far more likely
to report lower commitment (Chapter 2), lower
engagement (Chapter 2), feel less valued (multiple
chapters), and experience higher levels of stress
(Chapter 16), anxiety (Chapters 3 and 16) and work-
life conflicts (Chapter 10). Moreover, laws govern
what constitutes work, overtime, and compensation,
and our always connected society puts more and
more companies at legal risk.86
Causes. Organizational cultures are part of the
cause (Chapter 13). Company values, policies, and
practices are more or less supportive of unplugging.
Besides the culture, your direct supervisor’s expec-
tations and behavior (role modeling) determine to a
large degree the extent to which employees suffer
the pitfalls of always being plugged-in. One study
found only 14 percent of managers unplug when
they take time off and just 7 percent of senior level
managers. This does not bode well for most of us.
More troubling still is that it seems the mere
expectation you’ll check e-mail after hours causes
anxiety, stress, and decreased well-being, even if
you don’t actually check It! This suggests you don’t
even have to actually work after hours to experi-
ence negative effects.87
Apply the 3-Step Problem-Solving Approach
Step 1: Define the problem(s) described in this example. Remember, problems are gaps between
what exists and what is desired. Consider outcomes that are undesirable and for whom.
Step 2: Identify potential causes to the problem(s) defined In Step 1. Be sure to link the causes to the
problem you identified.
Step 3: Make a recommendation aimed at each cause you feel will improve or remove the problem.
Be sure your recommendations link to the causes identified in Step 2.

35Making OB Work for Me CHAPTER 1
as potential causes of your organization’s turnover problem. Look at the summary
Organizing Framework for guidance (see Figure 1.4).
• Potential Cause 1—Person factors often represent key causes of turnover. Possibly
the junior employees are quitting because their jobs don’t fulfill their personal val-
ues (see Chapter 2). Low job satisfaction (Chapter 2) and demotivating job charac-
teristics (see Chapter 5) also might cause turnover.
• Potential Cause 2—Situation factors frequently are causes of turnover. For example,
people may be quitting because they have poor relationships with their bosses (see
Chapter 13) or are working in a culture (see Chapter 14) characterized by damaging
political behavior (see Chapter 12).
• Potential Cause 3—Individual, group/team, and organizational processes can also
cause turnover. Conflict (with your boss), a team-level process (see Chapter 10),
may constitute a cause of turnover. Another is a faulty performance management
system (an organizational-level process—Chapter 6), one that unfairly distributes
raises, bonuses, and recognition. As you will learn in Chapter 5, perceived injustice
can be a powerful driver of employee turnover.
Notice the potential causes are located in different components (inputs and processes)
and different levels within the Organizing Framework. Using the Organizing Frame-
work to identify potential causes increases the likelihood that you’ll identify the appro-
priate ones, essential to creating and implementing the best solution in Step 3.
Step 3: Generate Effective Recommendations Using OB Now it’s time to review the poten-
tial causes and identify the most likely and significant ones for the problem you
defined in Step 1. Returning to our scenario, we list brief recommendations for each
of the potential causes outlined above. We’ll address all three to highlight how much
you will learn and the practical value of that knowledge.
• Response to Cause 1: Recommendations for Improving Person Factors. OB provides a
host of ideas for solving problems. The needs of your most valuable employees could
be better satisfied if they were allowed to work on projects that satisfy their values of
self-direction or achievement (Chapters 2 and 5). Job satisfaction might be increased
through rewards that equitably meet employees’ needs. Finally, motivation can be
enhanced if people are allowed to assume more responsibility for projects (job
enrichment) and the ability to decide how and when to do their work (autonomy).
• Response to Cause 2: Recommendations for Improving Situation Factors. Manager–
employee relationships can suffer for many reasons, but let’s assume some key and
more junior employees in your department feel they are in the “out group,” instead of
the “in group,” consisting of older and more senior employees who have known and
worked with your manager for many years. This cause sounds like poor leader–
member exchange (LMX in Chapter 13), which can be remedied if managers are trained
to be more inclusive and implement formal mentoring and development programs.
Managers can improve the political behavior driving a negative culture by acknowledg-
ing its existence and discontinuing the practice of rewarding people who are too politi-
cal. Finally, team building (see Chapter 8) can reduce conflict among employees.
• Response to Cause 3: Recommendations for Improving Processes. Along with the knowl-
edge you will gain related to justice and goal setting, Chapter 6 provides a host of ideas for
improving performance management practices. A good place to start is to use Table 6.1
and clearly define and communicate performance goals and expectations. If these goals
are SMART, then they are more likely to be achieved. Finally, rewards are more effective
if the links between particular levels of performance and rewards are made clear. Rewards
and their consequences should be fair and based on accurate performance evaluations.
Are you surprised by the many causes and potential solutions for this problem? As we
just illustrated, the 3-Step Approach, combined with the Organizing Framework, can help
you to more effectively solve problems. This, in turn, will contribute to your professional
(and personal) effectiveness and potentially increase your opportunities.

36 PART 1 Individual Behavior
Takeaways for Me
1. Be sure you develop and apply both hard and soft skills. Effective employees can no
longer solely rely on technical expertise to get a job and advance once you do.
2. Consider the skills most sought after by employers (like critical thinking, problem solv-
ing, decision making, active listening) and decide which are your strengths and weak-
nesses. Use this knowledge along with the self-assessments in this book to improve
your self-awareness and guide your development.
3. Give your employers what they want! Be sure to highlight the valued skills you possess
during interviews and explore and seize opportunities to develop the others.
4. Identify the most common forms of unethical conduct in your job, determine possible
causes using Table 1.2, and confront and/or avoid them. Unethical conduct can be so
damaging to you and your career. Most unethical conduct is not illegal, which means
legal action is rarely a viable solution. Also, be aware of the possible consequences of
whistle-blowing—doing the “right thing” can be costly. Finally, applying rigor and
structure to problem solving can help you avoid the pitfalls of common sense and
make you more successful at work, at school, and in life.
Takeaways for Managers
1. Identify the key skills needed to be top performers in the jobs you manage. You may con-
sider an existing or past top performer, but we also suggest determining to what extent
your current employees possess soft skills and the other skills noted as determined by
the most current research. Select and develop employees focusing on these skills.
2. Determine the most common forms of unethical conduct for managers like you, as well
as for those you manage. Identify the likely causes (see Table 1.2) and explain clearly
what you expect from your employees when they are confronted with such situations.
3. Realize that performance and all other employee behavior is a function of both the per-
son and the situation. Don’t be too quick to attribute bad (or good) behavior to the
employee as situation factors may also be at play.
4. Improve your effectiveness and that of those you manage by applying the 3-Step Problem-
Solving Approach. Be sure to define problems accurately and look for causes at multi-
ple levels—individual, group/team, and organizational. Organizations and people are
complex and managing them requires you to consider this complexity and deal with it
effectively. Models like the Organizing Framework can help.
Our Wishes for You
Knowledge by itself is not an advantage; to get ahead you must apply your knowledge. This is why
we wrote this book with a primary emphasis on application and provide numerous opportunities
for practice in every chapter. We encourage you to continually apply your new OB knowledge as
you learn it. Applying knowledge is the key to achieving a more successful and fulfilling career,
which is our ultimate wish for you and our goal for writing this book. Enjoy the rest of your journey!
Describe the
implications of OB
knowledge and tools
for you and managers.
LO 1-7
1.7 MAKING THE CONNECTION: WHAT IS OB AND WHY
IS IT IMPORTANT?
THE BIGGER PICTURE
To reflect on and apply your new knowledge, we provide a few notable examples of how you
can benefit as both an employee and a manager.

37Making OB Work for Me CHAPTER 1
You learned OB is a multidisciplinary field of study
focused on behavior at three levels—individuals,
groups/teams, and organizations. Understanding
and applying OB knowledge and tools are valu-
able means for Increasing your performance at
school and work, as well as advancing your
career. Like most every OB concept, (un)ethical
behavior is determined by both person and situa-
tion factors. More generally, OB knowledge is a
powerful problem-solving tool and can make you
more satisfied and effective in many arenas of
your life—school, work, and home.
Key Points for Understanding
Chapter 1
You learned the following key points.
1.1 THE VALUE OF OB TO YOUR
JOB AND CAREER
• OB is an applied discipline focused on man-
aging the behaviors of individuals, groups/
teams, and organizations.
• The contingency approach says the best or most
effective approach depends on the situation.
• Self-awareness is critically important to your
short and long-term success.
• Employers want employees who possess
both hard and soft skills.
1.2 FACTORS THAT INFLUENCE
UNETHICAL CONDUCT AND
HOW IT AFFECTS
PERFORMANCE
• Ethics is concerned with behavior—right,
wrong, and the many shades of gray in
between.
• The vast majority of unethical conduct at work
is not illegal.
• Unethical conduct negatively affects the indi-
vidual targets, the perpetrators, coworkers,
and entire organizations.
• Ethical dilemmas are situations in which
none of the potential solutions are ethically
acceptable.
1.3 USING OB TO SOLVE
PROBLEMS AND INCREASE
YOUR EFFECTIVENESS
• A problem is a difference or gap between a
current and a desired outcome or state.
• Problem solving is a systematic means for
closing such differences or gaps.
• The 3-Step Problem Solving Approach
includes defining the problem, identifying the
causes using OB concepts, and making rec-
ommendations and action plans.
1.4 THE PRACTICAL RELEVANCE
AND POWER OF OB TO HELP
SOLVE PROBLEMS
• The person–situation distinction is a funda-
mental way to organize, understand, and
apply OB concepts.
• Person factors are the many characteristics
that give individuals their unique identities.
• Situation factors consist of all the elements
outside us that influence what we do.
1.5 THE ORGANIZING
FRAMEWORK FOR
UNDERSTANDING AND
APPLYING OB
• The Organizing Framework is a tool that helps
you organize, understand, and apply your
OB knowledge and tool.
• The systems approach—inputs, processes,
outcomes—is the basis of the Organizing
Framework.
• The Organizing Framework is extremely valu-
able when applied to the 3-Step Problem-
Solving Approach.
What Did I Learn?

38 PART 1 Individual Behavior
1.6 APPLYING THE ORGANIZING
FRAMEWORK TO THE 3-STEP
PROBLEM-SOLVING
APPROACH
• The Organizing Framework is a powerful tool to
use with the 3-Step Problem-Solving Approach.
• The fully populated Organizing Framework is
an excellent preview of the breadth, depth,
and practical knowledge you will gain during
this course.
1.7 WHAT IS OB AND WHY IS IT
IMPORTANT?
• OB knowledge and tools are powerful means
for enhancing your job performance and
career opportunities.
• Understanding and applying OB concepts are
critical for manager success.
The Organizing Framework
for Chapter 1
In this chapter we introduced our first application
of the Organizing Framework, demonstrating the
basic structure of inputs, processes, and outcomes
(see Figure 1.5). The basic framework shown here
will help you organize new concepts, theories, and
tools as they are introduced, as well as help you
retain and apply them. We’ll use the Organizing
Framework at the end of each chapter as an aid to
review and apply what you’ve just learned.
We hope you are impressed by all that you will
learn, as illustrated in the Summary Organizing
Framework (Figure 1.4). The same framework can
help you understand and manage behavior and
solve problems in many different organizational
contexts (clubs, sports teams, and other social
groups).
FIGURE 1.5 Organizing Framework for Understanding and Applying OB
INPUTS PROCESSES OUTCOMES
Personal Factors
Situation Factors
Individual Level
Group/Team Level
Organizational Level
Individual Level
Group/Team Level
Organizational Level
©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors.

39Making OB Work for Me CHAPTER 1
How can you change the world of medicine, or at
least medical testing, monitoring, and diagnosis?
One potential way is to invent a device that performs
more than 240 tests with just a couple of drops of
blood, faster, more effectively, and with less pain
than existing approaches.88 Coming up with the idea
is one thing, but raising the funds and assembling
the necessary talent is another. It’s not enough to
have an idea, you need to bring it to life. If you were
to do this it would help to be extremely intelligent,
even more driven, and be willing to do anything it
takes. Anything. This describes Elizabeth Holmes
and the company she founded, Theranos, which
aimed to revolutionize medicine with a new blood
testing technology.
FORECLOSURE OF A DREAM
Unfortunately, the technology didn’t work. But that
didn’t stop Holmes from telling investors, customers,
employees, the press, and everyone else it did. Her
ambition transformed to fraud and resulted in the death
of Theranos. The testing that supposedly certified the
efficacy of the company’s product has since been dis-
credited, and it is now known that some of the demon-
strations of prototypes of the company’s products were
rigged.
The billions of dollars in estimated value of Ther-
anos are gone, along with It the accolades once show-
ered on Holmes as being the youngest self-made
billionaire at age 30. At one point $9 billion but now
$0. Also gone is the $700 million of investors’ actual
money, and the jobs of many very talented employees
who were either fired or quit during the company’s
existence. These employees, along with the unfortu-
nate few who stayed to the end, may have tarnished
reputations for years to come as a result of their asso-
ciation with Holmes and her company. Holmes is now
faced with the fallout and is confronted with criminal
charges related to defrauding investors, customers,
employees, and most anyone else connected to the
company. Her ex-boyfriend, and Theranos’s president
and COO, Ramesh Balwani is also facing many of the
same charges. He acted as confidant, advisor, and as
many insiders eventually learned, was seemingly the
only other person within the company besides Holmes
how knew the truth.89
HOW DID THIS HAPPEN?
She went from Stanford undergraduate engineering stu-
dent and celebrated female entrepreneur, to the
founder and leader of one of the most astounding
frauds in science and business in the recent past.
Theranos was the company she founded with the hopes
and claims that its technology would revolutionize blood
testing and in the process medicine. Holmes always
wanted to make an impact, and at 19 saw this as her
path. She spent the next several years assembling the
necessary talent, money, influence, and notoriety to
realize her vision. But as we now know it was a sham.
Holmes was single-minded and unwavering in pur-
suit of her vision. She ruled the company like a dictator,
making all critical decisions herself, sharing informa-
tion on a need to know basis, and expressing enthusi-
asm and positivity even in instances of flat out failures,
such as demonstrations and presentations to investors
and potential customers. She quickly soured on, then
avoided, and even retaliated against those who ques-
tioned her or her ways. Absolute loyalty, which meant
agreement and obedience, was demanded by Holmes.
Individuals and groups who spoke out or otherwise fell
out of favor were quickly dismissed, as was any feed-
back that was inconsistent with Holmes’s desired mes-
sage or outcome,90
Although it was Holmes’s company, and she
hoarded authority, other factors supported her ulti-
mately disastrous approach. Her vision, charisma, con-
viction, and delivery persuaded many wealthy and
otherwise powerful people and organizations to sup-
port her cause. For Instance, two of the largest Inves-
tors were Betsy DeVos, now education secretary and
part of the founding family of Amway, as well as Rupert
Murdoch (the media mogul who owns Fox among many
others). The board was stacked with celebrities from
government (Henry Kissinger and George Schultz, both
former secretaries of state). Along with others with
impressive track records from Apple and other tech
companies, these prominent Individuals gave Holmes
and Theranos credibility.91
PROBLEM-SOLVING APPLICATION CASE
Blood, Brilliance, Blind Ambition, and Fraud

40 PART 1 Individual Behavior
WHAT ABOUT THE BOARD?
The company also had a board of directors, which, as
in other companies public or private, was charged with
ultimate oversight and responsibility. Members of the
Theranos board had impressive resumes and should
have been up to the task, such as Avie Tevanian, who
was Steve Jobs’s righthand man at Apple and head of
software engineering, and Don Lucas (chair of the
board) a long-time and successful venture capitalist.
However, they were relatively silent or when they did
speak up, as Tevanian did, they were dismissed.
Apparently, Holmes grew tired of his increasingly con-
frontational insistence she “open the books” and jus-
tify her seemingly wildly and overly optimistic revenue
projections.92
But the real truth is coming to light from books, doc-
umentaries, and legal proceedings. Walgreens, one of
Theranos’s marquee customers, is suing for $140 mil-
lion, the SEC has charged Holmes and Balwani with
fraud, and other investors are sure to follow. This raises
the question: how could this have been avoided? How
can this be prevented in the future?
Assume you are the chair of the Theranos board of
directors back in 2003 at the founding of the company.
Apply the 3-Step Problem-Solving Approach to pre-
venting the debacle.
APPLY THE 3-STEP PROBLEM-
SOLVING APPROACH TO OB
STEP 1: Define the problem.
A. Look first at the Outcomes box of the Organizing
Framework to help identify the important
problem(s) in this case. Remember that a prob-
lem is a gap between a desired and current
state. State your problem as a gap and be sure
to consider problems at all three levels. If more
than one desired outcome is not being accom-
plished, decide which one is most important and
focus on it for steps 2 and 3.
B. Cases have key players, and problems are
generally viewed from a particular player’s
perspective. You need to determine from
whose perspective—employee, manager, team,
or the organization—you’re defining the
problem. In this case you’re asked to assume
the role of chair of the board of directors at
Theranos.
C. Use details in the case to determine the key
problem. Don’t assume, infer, or create problems
not included in the case.
D. To refine your choice, ask yourself, why is this a
problem? Explaining why helps refine and focus
your thinking. Focus on topics in the current
chapter, because we generally select cases illus-
trating concepts specifically located within the
current chapter.
STEP 2: Identify causes.
Using material from this chapter and summarized in
the Organizing Framework, identify the causes of the
problem you identified in Step 1? Remember, causes
tend to appear in either the Inputs or Processes boxes.
A. Start by looking at the Organizing Framework
(Figure 1.4) and decide which person factors, if
any, are most likely causes of the defined prob-
lem. For each cause, explain why this is a cause
of the problem. Asking why multiple times is more
likely to lead you to root causes of the problem.
For example, do executive characteristics help
explain the problem you defined in Step 1?
B. Follow the same process for the situation fac-
tors. For each ask yourself, why is this a cause?
By asking why multiple times you are likely to
arrive at a complete and more accurate list of
causes. Again, look to the Organizing Frame-
work for this chapter for guidance. Did particular
policies or practices play a role?
C. Now consider the Processes box in the Organizing
Framework. Are any processes at the individual,
group/team, or organizational level potential
causes of your defined problem? For any pro-
cess you consider, ask yourself, why is this a
cause? Again, do this for several iterations to
arrive at the root causes.
D. To check the accuracy or appropriateness of the
causes, be sure to map them onto the defined
problem and confirm the link or cause and effect
connection.
STEP 3: Recommend solutions.
Make your recommendations for solving the problem.
Consider whether you want to resolve it, solve it, or
dissolve it (see Section 1.5). Which recommendation is
desirable and feasible?
A. Given the causes you identified in Step 2, what
are your best recommendations? Use material in
the current chapter that best suits the cause.
Consider the OB in Action and Applying OB
boxes, because these contain insights into what
others have done.
B. Be sure to consider the Organizing Framework—
both person and situation factors—as well as
processes at different levels.
C. Create an action plan for implementing your rec-
ommendations and be sure your recommenda-
tions map onto the causes and resolve the
problem.

41Making OB Work for Me CHAPTER 1
LEGAL/ETHICAL CHALLENGE
What Would You Do?
Assume you are a nursing director for a nursing home.
You’ve been working at the facility for a few short
months when you learn the company that owns the
home has been improperly overbilling Medicare for
the care and services provided to the residents. You
bring this to the attention of the company’s managers,
but they do nothing. You then notify the appropriate
authorities (becoming a whistle-blower) and, dismayed
by the fraud and other problems, you quit.
Several months later you interview for a new posi-
tion as nursing director at another facility. The inter-
view is with a panel of 10 decision makers, including
the CEO, medical director, and other administrators,
who will decide whether or not you get the job.
One other important detail: This facility is just two
miles from the one you reported to the authorities
before quitting. Nursing, like some other industries,
tends to be a closed circle of people who often cross
paths repeatedly in different jobs over time. This
means one or more of the interviewers may know
about you and the other facility before the interview, or
one or more of them will likely learn after if they don’t
know already.
What would you do about divulging information
regarding the allegations made against your previous
employer? Choose your answer from the options
below. Be sure to explain and justify your choice.
Your Response
1. Do not divulge the whistle-blowing. Justify.
2. Wait until you learn the outcome of the inter-
view; if you don’t get the offer, don’t share the
information. Justify.
3. Wait until you learn the outcome of the panel
interview; if you get a job offer, then tell the per-
son who makes you the offer about the allega-
tions. Explain your reasoning.
4. Tell all members of the panel during your inter-
view. Explain your reasoning, Including anticipat-
ing their potential reaction and what you might
do as a result.
5. Create and explain another course of action.

LO 2-1 Describe the role values play in influencing your behavior.
LO 2-2 Explain how personal attitudes affect workplace behavior and
work-related outcomes.
LO 2-3 Discuss the importance of four key workplace attitudes.
LO 2-4 Discuss the five causes of job satisfaction.
LO 2-5 Describe work-related outcomes associated with job satisfaction.
LO 2-6 Describe the implications of values and attitudes for you and managers.
After reading this chapter, you should be able to:
The Organizing Framework for Understanding and Applying OB shown in Figure 2.1 summa-
rizes what you will learn in this chapter. Chapter 2 begins your study of the way values, personal
attitudes, and intentions serve as inputs to a host of individual- and organizational-level out-
comes. Remember, we generally define problems as gaps between the current and the desired
state of one or more outcomes. In this chapter, pay attention to the way values and personal
attitudes might become causes of problematic outcomes, such as low task performance, poor
workplace attitudes, low well-being/flourishing, low citizenship behavior/counterproductive
behavior, and high turnover. These inputs also might contribute to explaining the organizational-
level outcomes of poor firm performance and low customer service or satisfaction.
2 Values and Attitudes
INPUTS PROCESSES OUTCOMES
Person Factors
• Values
• Personal Attitudes
• Intentions
Situation Factors
Individual Level
Group/Team Level
Organizational Level
Individual Level
• Task performance
• Workplace attitudes
• Well-being/flourishing
• Citizenship behavior/counter-
productive behavior
• Turnover
Group/Team Level
Organizational Level
• Accounting/financial performance
• Customer service/satisfaction
FIGURE 2.1 Organizing Framework for Understanding and Applying OB
©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors.
C
ai
a
Im
ag
e/
Im
ag
e
So
ur
ce
Organizational Behavior: A Practical,
Problem-Solving Approach

43
Creating Your Own Sense of Engagement
If you’re still struggling to feel engaged, try these additional steps:
• Revisit the big picture. Refresh your understanding of
your organization’s larger mission and how your work
contributes to achieving it. What’s the larger picture, and
what role does your work play? How can you close any
gap that might exist between the two?
• Challenge yourself. If you’re just coasting along at work,
look for a task that needs doing or a committee or work
team to which you can contribute, and ask your manager to
let you tackle this new opportunity. Emphasize your desire
to learn and grow, and be ready to demonstrate that you’ll
continue doing your current work to the highest standards.
• Take a break. If you haven’t taken any time off in a while,
consider a short break or even a vacation to replenish
your emotional resources. Try to physically and mentally
disconnect from work as much as possible while away,
and use the time to regain your focus and enthusiasm.
• Do something for yourself. Add a meaningful spark to
your life outside work by volunteering in your community,
learning a new skill unrelated to work, going to a profes-
sional networking event, or simply making more time for
socializing with family and friends.
Gallup’s State of the Global Workplace report says that only
15  percent of employees around the world are engaged at
work, which could be costing U.S. employers alone as much as
$550 billion in lost productivity every year.2 Rather than interpreting
this data to mean you don’t stand a chance of maintaining your
connection to work, realize that you actually have a unique oppor-
tunity to stand out from the crowd. Fully engaged employees are
widely acknowledged to be a company’s most valuable asset.
That asset can be you.
We’ll see in this chapter that employee engagement is a work-
place attitude that motivates people to identify with and immerse
themselves in their work, actively applying a sense of urgency,
focus, intensity, and enthusiasm. That sounds like a positive and
rewarding approach to bring to the job every day, doesn’t it?
Managers have a number of tools at their disposal to help fos-
ter engagement at work, like maintaining supportive relationships
with employees and reducing factors that can create stress and
frustration. The good news for those starting out in their careers,
however, is that whether your manager uses these tools or not,
you can foster your own sense of engagement no matter what
kind of work you do.
Here are some ways to be sure you are bringing your best and
most deeply engaged self to the job each day:1
• Know your job and what is expected of you. Ask well-
informed questions, seek out training you may need, vol-
unteer for extra assignments, and look for new roles you
can play in your organization to increase your sense of
competence and skill. These all contribute to engage-
ment at work and increase your visibility as well.
• Speak up when you have appropriate opportunities.
Those who are heard are usually more emotionally com-
mitted to the organization and are more likely to feel they
are valued. Offer positive suggestions or constructive
feedback in team or committee meetings, for example.
• Ask for frequent feedback. Make it a habit to ask your
boss, your coworkers, and your peers in other depart-
ments how well you’re performing, so you know what
you’re doing well and what to improve on. Recognition
and praise build engagement, as does constructive
criticism.
• Work on developing mindfulness. Mindfulness is a strat-
egy that allows you to readily focus on the task at hand.
Some immediate steps you can take are limiting your time
online, checking your e-mail only once or twice a day and
at specific times, and avoiding your cellphone during the
work day except for emergencies. Don’t try to multitask.
Instead, work on your ability to focus so you can enjoy the
satisfaction of completing each task.
• Avoid coworkers who are actively disengaged.
Disengaged workers can sometimes be influential people
in the organization and are often vocal about their feel-
ings, but their negative attitudes about the workplace are
contagious and can spread dissatisfaction even among
those who are otherwise ready to be fully engaged.
• Take charge of your health. To be sure you are working
at your best performance level, eat healthy foods, drink
plenty of water, exercise, get enough sleep, and spend a
little time each day recharging through a quiet activity like
yoga or meditation.
Winning at Work
What’s Ahead in This Chapter
Now that you have new tools to make OB work for you—
tools like the Organizing Framework and the 3-Step Prob-
lem Solving Approach—you’re ready to put them to work.
With this chapter we begin exploring how individual-level
factors influence a host of important outcomes. Specifi-
cally, we look at the way individual-level factors such as
values affect workplace attitudes and behavior. We help
you explore how your personal values affect your own
workplace attitudes and behavior. We’ll outfit you with OB
concepts to understand key work-related attitudes—orga-
nizational commitment, employee engagement, and per-
ceived organizational support—which lead to important
outcomes at the individual and organizational levels.
Before you’re done, you will understand the causes and
consequences of job satisfaction, an important outcome
for both employees and managers.
Organizational Behavior: A Practical,
Problem-Solving Approach

44 PART 1 Individual Behavior
2.1 PERSONAL VALUES
 Values  are abstract ideals that guide our thinking and behavior across all situations.
They stem from our parents’ values, our experiences in childhood and throughout life, and
our religious or spiritual beliefs. Values are relatively stable and can influence our behavior
without our being aware of it.
Understanding the way values affect our behavior matters for two reasons. First, val-
ues guide our actions across all situations. Knowing this helps you to self-manage, such as
by choosing a major or career for which you are well suited. Second, you will be more
effective at influencing others’ attitudes and behaviors when you are armed with an under-
standing of values and their effects.
Renowned researcher Shalom Schwartz created a theory of personal values that many
managers and OB professionals find useful for understanding the motivational impact of
our values. Let’s look at this theory.
Schwartz’s Value Theory
Schwartz proposed that broad values motivate our behavior across any context. He catego-
rized these values into two opposing or bipolar dimensions, as outlined in Table 2.1. The
first dimension ranges from concern for the welfare of others (which Schwartz calls self-
transcendence) to pursuit of one’s own interests (self-enhancement). The second dimen-
sion ranges from self-directed independence (which Schwartz calls openness to change) to
THE BIGGER PICTURE
You may already have a good understanding of your personal values and the role they play in
your life. In an organization, personal values contribute to workplace attitudes and behavior.
So it’s important to understand how the full range of potential human values affects our atti-
tudes and behavior at work. Then you can use this knowledge to influence outcomes in the
Organizing Framework for Understanding and Applying OB.
Describe the role
values play in
influencing your
behavior.
LO 2-1
TABLE 2.1 Bipolar Dimensions in Schwartz’s Model
FIRST BIPOLAR DIMENSION
Self-Transcendence Self-Enhancement
Concern for the welfare and interests of
others (universalism, benevolence).
Pursuit of one’s own interests and relative
success and dominance over others
(power, achievement).
SECOND BIPOLAR DIMENSION
Openness to Change Conservation
Independence of thought, action, and
feelings and readiness for change
(stimulation, self-direction).
Order, self-restriction, preservation of
the past, and resistance to change
(conformity, tradition, security).
Organizational Behavior: A Practical,
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45Values and Attitudes CHAPTER 2
conformity (conservation). Schwartz stressed that it is the relative importance we give to
these two dimensions of opposing values that drives our behavior.3 For example, if you
value achievement (self-enhancement) over universalism (self-transcendence), you will
spend your evening studying hard to get an A in this class rather than attending a meeting
about fighting climate change. Our values help us to make these types of choices.
Schwartz categorized 10 broad values within these two opposing dimensions. Figure 2.2
shows those 10 values as the slices of a pie, with the underlying opposing dimension shown
outside the circle. Schwartz placed the 10 values in a circular-motivation structure to
illustrate their compatibility. In general, adjacent values (like self-direction and universal-
ism) are more compatible. That is, these values share a common focus that promotes their
acceptance within an individual. Values that are farther apart (like self-direction and
power) are less compatible or in conflict. Opposing values (such as self-direction and con-
formity) are less likely to be held by the same individual.
Schwartz noted that one set of values is in opposition to the other set, as suggested by
the use of color in Figure 2.2. Notice the unique treatment of several values: Tradition and
conformity share a single wedge, supporting the same broad motivational goal. Confor-
mity is toward the center because it does not conflict with the opposing value quite as
much as does tradition, which is toward the outside. Also notice that hedonism shares
elements of both openness to change and self-enhancement.
Protesting is often driven by values-based issues such as ending gun violence. These protesters might be expressing the
self-transcendence value of universalism and the self-direction value associated with openness to change. In contrast,
completing a college degree might reflect values associated with achievement, power, and stimulation.
(Left): Rena Schild/Shutterstock; (right): Digital Vision/SuperStock
Organizational Behavior: A Practical,
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46 PART 1 Individual Behavior
Workplace Applications of Schwartz’s Theory You can feel comfortable apply-
ing this theory because research supports its basic structure and its prediction of behavior.
For example, suppose you and several classmates are working together on a sustainability
project for an earth sciences course. You volunteer to assign specific tasks to the three
other classmates on the project. Paul, one of the team members, tells you he’s not con-
vinced that climate change is a real issue, so it may not be a good idea to ask him to come
up with ideas to protect the earth’s natural resources, because he may not value the impor-
tance of protecting the environment (universalism). Instead, he might be better suited to
prepare the project’s final report because he’s motivated to get an A for the assignment
because success is important to him (achievement).
In the workplace, managers can better supervise workers by using Schwartz’s model to
understand their values and motivation. For example, if a manager knows that an employee
values universalism and benevolence, then it would be wise to assign this employee to proj-
ects or tasks that have social value. Managers can also use Figure 2.2 to reduce the chances
of employees’ experiencing conflict between their values and their work assignments, when
options are available. An employee who values tradition and conformity over achievement,
for example, will not be happy about being asked to work on a holiday or to miss a child’s
school play for work.
Excitement, novelty,
and challenge in life
(daring, a varied life,
an exciting life)
Pleasure and sensuous
gratification for
oneself (pleasure,
enjoying life)
Independent thought and action,
choosing, creating, exploring
(creativity, freedom, independent,
curious, choosing own goals)
Understanding, appreciation,
tolerance and protection of the
welfare of all people and of nature
(broad-minded, wisdom, social
justice, equality, a world at peace,
a world of beauty, unity with nature,
protecting the environment)
Preservation and
enhancement of the welfare of
people with whom one is in
frequent personal contact
(helpful, honest, forgiving,
loyal, responsible)
Restraint of actions,
inclinations, and impulses
likely to upset or harm others
and violate social
expectations or norms
(politeness, obedient, self-
discipline, honoring parents
and elders)
Personal success
through demonstrating
competence according
to social standards
(successful, capable,
ambitious, influential)
Social status and prestige, control
or dominance over people and
resources (social power,
authority, wealth)
Safety, harmony, and stability of
society, of relationships, and of self
(family security, national security,
social order, cleanliness,
reciprocation of favors)
Self-Direction Universalism
Benevolence
Conformity
Security
Power
Achievement
Stimulation
Hedonism Tradition
Respect, commitment, and
acceptance of the customs and
ideas that traditional culture
or religion provides the self
(humble, accepting my
portion in life, devout, respect
for tradition, moderate)
O
pe
nn
es
s t
o C
han
ge
Self-Enhancement
Co
ns
er
va
tio
n
Self-Transcendence
FIGURE 2.2 Values and Motives in Schwartz’s Theory
SOURCE: Schwartz, Shalom H. “An Overview of the Schwartz Theory of Basic Values.” Online Readings in Psychology and Culture 2, no.1 (2012): 9. https://doi.
org/10.9707/2307-0919.1116. Bardi, Anat, and Shalom H. Schwartz. “Values and Behavior: Strength and Structure of Relations.” Personality & Social Psychology
Bulletin 29, no. 10 (October 2003): 1207–220. https://doi:10.1177/0146167203254602.
Organizational Behavior: A Practical,
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47Values and Attitudes CHAPTER 2
Research also confirms the theory’s relevance cross-culturally for both children
and adults. As you might expect, the priorities given to Schwartz’s values do vary across
countries.4
Personal Application of Schwartz’s Theory Schwartz’s model can help you deter-
mine whether your values are consistent with your goals and whether you are spending
your time in a meaningful way. Complete the Self-Assessment that measures the worth to
you of Schwartz’s 10 values, and whether your goals align with these values.
What Are My Core Values?
Please be prepared to answer these questions if your instructor has assigned Self-
Assessment 2.1 in Connect.
1. Rank your scores for the values from high to low. Do you agree with this rank
order?
2. What are your top five values? Which do you think has the greatest impact
on your personal goals?
3. Do you think you may want to focus more on any of the five lowest-rated values
as you graduate from school and pursue a career? Explain.
SELF-ASSESSMENT 2.1 CAREER READINESS
The Dynamics of Values
In general, our values are relatively stable across time and situations. This means that
positive employee attitudes and motivation are greatest when the work environment is
consistent with employee values. For example, Airbnb, the global lodging website, tries to
attract and motivate employees by offering them an annual travel and experiences credit
of $2,000 to visit anywhere around the world where the company offers accommodations.
The company does this because it believes Airbnb employees are driven to “embrace the
adventure” and experience personal growth through traveling to different countries and
communities.5
Values tend to vary across generations because they are influenced by events in
childhood and youth. For example, the author’s parents lived through the Depression,
which lasted through the 1930s and part of the 1940s. This experience led them to
value security and to be conservative with their money. They did not like debt, and
they opposed the use of credit cards. Do you know anyone with values like these? In
contrast, the values held by baby boomers, people born between 1946 and 1964, are
influenced by events like the assassination of President John F. Kennedy, the Vietnam
War, and the shooting deaths of student protesters at Kent State University in Ohio. In
contrast, Millennials, people born between 1980 and 2001, have been influenced by
events like September 11, the wars in Iraq and Afghanistan, the founding of Google,
and the rise of social media. What shapes the values of Generation Z? Born between
1997 and 2012, Gen Zers have been inf luenced by growing up during a recession
(focus on saving money); making connections on their mobile devices more than
10 hours a day; and fighting for racial equality and inclusion.6 We discuss generational
differences thoroughly in Chapter 4.
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48 PART 1 Individual Behavior
2.2 PERSONAL ATTITUDES AND THEIR IMPACT ON
BEHAVIOR AND OUTCOMES
In this section, we discuss the components of personal attitudes and examine the connec-
tion between personal attitudes and behavior.
Personal attitudes affect behavior at a different level than do values. While values rep-
resent global beliefs that influence behavior across all situations, personal attitudes relate
only to behavior directed toward specific objects, persons, or situations. We summarize the
differences between the two in Table 2.2.
 Attitudes  represent our feelings or opinions about people, places, and objects
and range from positive to negative. They are important because they influence our
behavior. For example, you are more likely to select chocolate ice cream over vanilla if you
are more positively disposed toward chocolate. In contrast,  workplace attitudes  are an
outcome of various OB-related processes, including leadership. In this chapter we
reserve the term workplace attitudes for attitudes that have resulted from the interaction of
various individual, group, and organizational processes. We examine the effects of work-
place attitudes later in Section 2.3.
As predictors of likely behavior, attitudes attract serious attention. Hardly a day goes
by without the popular media reporting the results of another effort to take the pulse of
public opinion (attitudes). Political consultants use poll results, for instance, to draft mes-
sages meant to nudge the public’s attitudes toward desired results. In the workplace, man-
agers conduct attitude surveys to monitor workplace attitudes like job satisfaction and
employee engagement, and to identify the causes of employee turnover.
THE BIGGER PICTURE
Closely related to values are personal attitudes, which also operate as an input in the Orga-
nizing Framework for Understanding and Applying OB. (In contrast, workplace attitudes are
defined as outcomes in the framework.) Personal attitudes have three components—affective,
cognitive, and behavioral. Knowing these components helps us understand how and when
personal attitudes affect behavior. Have you ever been stopped short by something that
didn’t seem to make sense? When personal attitudes collide with reality, the result is cogni-
tive dissonance. From an OB perspective, your personal attitudes affect your behavior via
your intentions.
Explain how personal
attitudes affect
workplace behavior
and work-related
outcomes.
LO 2-2
TABLE 2.2 Differences between Values and Personal Attitudes

CONCEPT

SCOPE

INFLUENCE
AFFECTS
BEHAVIOR
Personal Values Global Broad: All situations Variously
Personal Attitudes Specific Targeted: Specifically Via intentions
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49Values and Attitudes CHAPTER 2
Personal Attitudes: They Represent Your Consistent
Beliefs and Feelings about Specific Things
Consider a work example. If you have a positive attitude about your job (specifically, you
like what you are doing), you should be more willing to extend yourself by working longer
and harder. This example illustrates that attitudes propel us to act in a specific way in a
specific context.
Values and attitudes are generally in harmony, but not always. A manager who strongly
values helpful behavior may have a negative attitude toward helping an unethical coworker.
The hospitality industry is using attitude surveys
to identify the causes of employee dissatisfaction
and turnover—and perhaps discover why there is
a shortage of good cooks. A recent survey con-
ducted by Culinary Agents revealed that career
development opportunities were very important
to kitchen and dining room employees. Managers
use results from surveys like this to make organi-
zational changes. One restaurant, for instance,
implemented a Sous Chef Supper Series, in which
under-chefs can introduce original dishes to
the public. Others are making it easier for their
cooks to stay healthy. Chef Tony Maws of Craigie
on Main in Cambridge, Massachusetts, offers
company-sponsored yoga classes for employees.
At SPQR in San Francisco, executive chef Matthew
Accarrino has led his kitchen staff on bike rides to
the Napa Valley to visit the restaurant’s partnering
farm.7 Blue Apron, the meal kit delivery service,
uses customized software to regularly survey
employees with quick polls.8
YOUR THOUGHTS?
1. What are the pros and cons of using results from
attitude surveys to create organizational
changes?
2. Do you think the changes described above will
reduce employee turnover for cooks? Explain.
Hospitality Industry Uses Attitude Surveys to Target Causes of Turnover
OB in Action
This pastry chef seems to be enjoying her job. Not only does this attitude posi-
tively impact her performance, but it is contagious to others in the kitchen. Do
you think we have a choice in our work attitudes?
Echo/Image Source
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50 PART 1 Individual Behavior
The Three Components of Attitudes: Affective, Cognitive, and Behavioral
Our overall attitudes toward someone or something are a function of the combined influ-
ence of three components of attitudes:
1. The affective component—“I feel.” The  affective component  of an attitude
contains our feelings or emotions about a given object or situation. For
example, how do you feel about people who talk on their cell phones in restau-
rants? If you feel annoyed with such people, you are experiencing a negative affect
toward them.
2. The cognitive component—“I believe.” The  cognitive component  of an attitude
reflects our beliefs or ideas about an object or situation. What do you think about
people who talk on cell phones in restaurants? Your idea that such behavior is rude
(or not) represents the cognitive component of your attitude.
3. The behavioral component—“I intend.” The  behavioral component  refers to the
way we intend or expect to act toward someone or something. For example, how
would you intend to respond to someone talking on a cell phone during dinner at a
restaurant if this individual were sitting near you and your guest?
All three components influence behavior. You are unlikely to say anything to someone
using a cell phone in a restaurant if you are not irritated by this behavior (affective), if you
believe cell phone use helps people manage their lives (cognitive), and if you have no
intention of confronting the individual (behavioral).
When Attitudes and Reality Collide: Consistency and Cognitive Disso-
nance Have you ever been accused of being a hypocrite—saying one thing and then
behaving differently? Like most people, you probably want to maintain consistency
between your attitudes and your behavior.
But sometimes attitudes conflict with reality. Suppose Megan has a positive atti-
tude about helping others. One day in class, Megan’s instructor announces there will be
a contest to come up with the best social media campaign to increase enrollment at the
school. The prize for winning the contest is $500, which would go a long way to helping
Megan purchase a new laptop. The rub is that Rob, one of her classmates, has come to
her seeking help on his contest entry, agreeing to split the cash prize with her if they
win. Although Megan would like to help Rob, she feels it would take time away from
completing her own entry. Should she make time to help her classmate or focus solely
We are more likely to purchase a car when we have positive atti-
tudes toward it. These attitudes might pertain to make, model, color,
price, and quality. Which component of attitudes would most strongly
affect your overall attitude toward buying a sleek new convertible?
John Lund/Marc Romanelli/Blend Images LLC
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51Values and Attitudes CHAPTER 2
on finishing her own contest entry? According to social psychologist Leon Festinger,
Megan’s situation is creating cognitive dissonance.
 Cognitive dissonance  represents the psychological discomfort a person experi-
ences when simultaneously holding two or more conflicting cognitions (ideas,
beliefs, values, or emotions).9 Festinger was fascinated by the way people are motivated
to maintain consistency (and avoid dissonance) among their attitudes and beliefs, and the
way they resolve inconsistencies that drive cognitive dissonance. From observation, he
theorized that we can reduce cognitive dissonance in three ways:
1. Change your attitude or behavior or both. Megan could either (a) tell herself that she can’t
help Rob because she wants to win the contest and the much-needed prize money or (b)
schedule a little extra time to help her classmate and split the prize money.
2. Belittle the importance of the inconsistent behavior. Megan could belittle (in the sense of
“make small”) the belief that she needs to help her classmates every time they ask for
assistance.
3. Find consonant elements that outweigh dissonant ones. Megan could tell herself that she
can’t help because she could really use the prize money to buy a new laptop.
Attitudes Affect Behavior via Intentions
Psychologists I. Ajzen and M. Fishbein further explored the reasons our attitudes and behav-
ior can be misaligned. Based on this work, Ajzen developed and refined a model focusing on
intentions as the key link between attitudes and planned behavior. See Figure 2.3.
Determinants of Intention Figure 2.3 suggests that three key general motives (in the
three gold circles) predict or at least influence intention and behavior.
1. Attitude toward the behavior: the degree to which a person has a favorable or unfavor-
able evaluation of the behavior in question.
Subjective
norm Intention Behavior
Attitude
toward the
behavior
Perceived
behavioral
control
FIGURE 2.3 Ajzen’s Theory of Planned Behavior
SOURCE: Ajzen, Icek. “The Theory of Planned Behaviour.” Organizational Behavior and Human Decision Processes 50, no. 2
(December 1991): 179–211.
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McDonald’s Workers Protest Sexual Harassment: What Should Management Do?
Problem-Solving Application
Hundreds of McDonald’s employees in 10 U.S. cit-
ies recently staged a series of strikes to call atten-
tion to the prevalence of sexual harassment at work
and to urge the company to take more active steps
to prevent it. “This is more important than work,”
said one Kansas City employee who experienced
harassment and skipped her shift to participate in
that city’s rally. “We have the strength to protect one
another and demand the justice we deserve,” she
told the crowd.11
With historically low wages and a large share of
the workforce, one that consists predominantly of
women and young adults, the restaurant industry and
the fast-food industry in particular employ many peo-
ple typically vulnerable to rights violations. Four in 10
female employees in these sectors report having
received unwanted sexual advances, and nearly 3 in
10 report various forms of harassment. The majority,
including 90 percent of immigrant workers, keep quiet
about such offenses, and many are unaware that they
are legally entitled to protection and recourse.
The recent protests, organized by a labor
rights group called Fight for $15, were intended to
draw public attention to employees’ dissatisfaction
with McDonald’s response to complaints. “What
McDonald’s does on this issue, how they choose to
treat it, how they act on it proactively, will have
influence on other stores,” said a lawyer for the
workers.12 Among workers’ demands are better
training, more effective ways to file complaints, and
an employee committee specifically empowered to
look into sexual misconduct issues at the compa-
ny’s 14,000 stores.
Ten McDonald’s workers have already filed sex-
ual harassment and retaliation complaints against
male supervisors with the Equal Employment
Opportunity Commission (EEOC). Nearly 30 other
employees claim they have been harassed at work.
Two enforcement problems specific to the restau-
rant industry are that employees often depend on
tips, making it difficult for them to challenge poor
customer behavior, and the franchise structure of
the fast-food sector, which large companies may
feel absolves them from any responsibility for
employee relations at individual stores. Workers
want McDonald’s to take a bigger role in setting
human resource policies at the franchise level,
believing this will extend needed protections to
52 PART 1 Individual Behavior
2. Subjective norm: a social factor representing the perceived social pressure for or against
the behavior.
3. Perceived behavioral control: the perceived ease or difficulty of performing the behavior,
assumed to reflect past experience and anticipated obstacles.10
Consider the intention of donating blood. You would have a positive intention if you
thought donating was valuable for society (attitude toward the behavior), if your friends
were going to join you (subjective norm), and if you had the time to participate (perceived
control).
Putting the Theory into Practice We provide a case regarding McDonald’s as a
context for applying this theory. Once you identify the problem in the case, Ajzen’s
theory can be used to explain why the McDonald’s employees went on strike. You do
this by considering whether or not the three determinants of intentions are influencing
the employees’ behavior of walking off their shifts. If you conclude that one or more of
these determinants is a cause for the strike, then propose what management can do to
change the situation. For example, if you believe that the McDonald’s workers have a
positive attitude about going on strike, then what should management do to change
these attitudes?
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53Values and Attitudes CHAPTER 2
Research and Practical Applications According to the Ajzen model, someone’s
intention to engage in a given behavior is a strong predictor of that behavior. For example,
if you want a quick way to determine whether a worker will quit his or her job, have an
objective third party ask the worker what he or she intends. The answer is likely to be accu-
rate. Research supports this conclusion15 and the prediction that intentions are influenced
by the three general motives in Ajzen’s model.16
So if we want to change behavior, we should look at intentions and ways we might
modify them by working on the three general motives shown in Figure 2.3. Managers may
be able to influence behavioral change by doing or saying things that affect the three deter-
minants of employees’ intentions to exhibit a specific behavior: attitude toward the behav-
ior, subjective norms, and perceived behavioral control. In your own life, if you want to
exercise more, you should start by changing your intentions about exercising and your
associated beliefs about it.
Let’s consider another practical illustration. Have you ever wanted a classmate to
increase the quality of his or her work on a team project? If so, Ajzen’s model can help
you. Start by trying to create a positive attitude toward contributing high-quality work. You
might do this by telling the person that getting a good grade on the project will increase
everyone’s chances of getting higher grades for the course and ultimately a better job upon
graduation. Next, model the desired behavior by producing good work yourself and recog-
nizing others who do the same. This should strengthen the subjective norm about doing
high-quality work. Finally, talk to the individual about any obstacles getting in the way of
high-quality work and discuss solutions for overcoming them. This should increase the
person’s perceived behavioral control.
employees of franchise businesses that may not
have a human resource department or a safe pro-
cess for handling complaints about workplace
harassment. As the lawyer quoted above observed,
McDonald’s is a huge company and easily capable
of doing this effectively if it chooses to.
McDonald’s statement said, “We have strong
policies, procedures and training in place specifically
designed to prevent sexual harassment. To ensure
we are doing all that can be done, we have engaged
experts in the areas of prevention and response.”13
Employees, however, say nothing is being done.14
Apply the 3-Step Problem-Solving Approach
Action 1: What is the problem in this case?
Action 2: Identify the causes of the problem.
Action 3: Make a recommendation to correct the situation.
Organizational Behavior: A Practical,
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54 PART 1 Individual Behavior
2.3 KEY WORKPLACE ATTITUDES
Savvy managers will track four key workplace attitudes:
1. Organizational commitment
2. Employee engagement
3. Perceived organizational support
4. Job satisfaction
These attitudinal measures serve a dual purpose. First, they represent important out-
comes that managers may be working to enhance directly. Second, they link to other sig-
nificant outcomes that managers will want to improve where possible. For example, low
job satisfaction and low employee engagement imply lower task performance and higher
employee turnover.17 This is why managers should track key workplace attitudes and under-
stand their causes and consequences.
EXAMPLE Facebook sends out employee surveys on a regular basis to gauge work
attitudes and employee engagement. The company discovered these surveys not
only give employees the chance to be heard but also provide management with
important information when it comes to how long people intend to stay at the social
networking giant. For example, according to Facebook’s head of people analytics,
individuals who don’t fill out employee surveys are 2.6 times more likely to leave the
company over the next six months.18
This section specifically examines the first three of the four attitudes: organizational
commitment, employee engagement, and perceived organizational support. Job satisfac-
tion, the most studied workplace attitude, will be covered in a later section.
Organizational Commitment
OB researchers define commitment as “a force that binds an individual to a course of
action of relevance to one or more targets.”19 This definition highlights the way OB
researchers link commitment to behavior and the way workers can commit to multiple
targets or entities. For example, an individual can be committed to his or her job,
family, girl- or boyfriend, faith, friends, career, organization, and/or a variety of profes-
sional associations. Let us now consider the application of commitment to a work
organization.
THE BIGGER PICTURE
Of the many workplace attitudes we might see as outcomes in the Organizing Framework
for Understanding and Applying OB, researchers have identified a small number that
are especially potent. These key attitudes allow you to track a limited number of work-
place attitudes to gauge how the organization is doing. When you try to make sense of the
workplace on either side of a manager’s desk, these are the important attitudes to follow.
Discuss the
importance of four
key workplace
attitudes.
LO 2-3
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55Values and Attitudes CHAPTER 2
 Organizational commitment  reflects the extent to which an individual identi-
fies with an organization and commits to its goals. Committed individuals tend to
display two outcomes:
• Likely continuation of their employment with the organization.
• Greater motivation toward pursuing organizational goals and decisions.
What Drives Organizational Commitment? Many factors inspire organizational
commitment, but let’s start with a basic one. Organizational commitment exists to the
degree that your personal values match the values that pervade your company’s organiza-
tional culture. For example, if you value achievement and your employer rewards people
for accomplishing goals, you are more likely to be committed to the company. This consis-
tency between personal and company values is called person–culture fit and is discussed
in Chapter 14.
Throughout this book we will cover other drivers of organizational commitment,
including:20
• Personality.
• Meaningfulness of the work being performed.
• Organizational climate.
• Leader behavior.
• Organizational culture.
Finally, commitment depends on the quality of an employee’s psychological con-
tracts.  Psychological contracts  represent an individual’s perception about the
reciprocal exchange between him- or herself and another party. In a work environ-
ment, the psychological contract represents an employee’s beliefs about what he or she is
entitled to receive in return for what he or she provides to the organization. Research shows
that an employer breach of the psychological contract is associated with lower organizational
commitment, job satisfaction, and performance and with greater intentions to quit.21
How Can Managers Increase Employees’ Commitment? To highlight how
managers can increase employees’ commitment, we review three general best practices and
then discuss approaches used by Hilton, Salesforce, and Cisco.
General Best Practices
• Hire people whose personal values align with the organization’s.
• Make sure that management does not breach its psychological contracts.
• Treat employees fairly and foster trust between managers and employees.
Example Company: Hilton
• Fortune listed it as the No. 1 best company to work for in 2019.
• Launched new team member benefits including parental leave and adoption assis-
tance.
• Implemented a companywide immersion program requiring every executive leader
to spend one week on the front lines working alongside cooks, housekeepers, and
front desk personnel.
• Invested heavily in redesigning employee spaces with better lighting, more comfort-
able furnishings, and an updated cafeteria.
• Worked with Under Armour to introduce lighter, more comfortable work wear for
service employees.
• Increased expenditures for continuous learning and career development programs
through its Hilton University program.22
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56 PART 1 Individual Behavior
Example Company: Salesforce
• Fortune listed it as No. 2 best company to work for in 2019.
• Spent nearly $9 million over three years to address differences in pay across gender
and race for its more than 21,000 employees.
• Built company culture around Ohana—the Hawaiian concept of family, with
10 employee resource groups to encourage employees to be their “full authentic
self ” at work.
• Asks new employees to spend part of their first day doing service work in the local
community.
• Gives employees seven paid days of volunteer time off annually to make the world a
better place in addition to a generous amount of paid time off and sick leave.
• Established the role of Chief Philanthropy Officer to oversee the millions of dollars
in grants the company provides to support education in underserved neighbor-
hoods, homelessness organizations, and other local community initiatives.23
Example Company: Cisco
• Fortune listed it as the sixth best company to work for in 2019.
• Outlines company and employee expectations and benefits in “Our People Deal,” a
manifesto detailing what Cisco can do for its employees and what the company
expects in return.
• Flextime helps employees achieve work–life balance. Flextime is a policy of giving
employees flexible work hours so they can come and go at different times, as
long as they work a set number of hours.
• Employees get 40 hours of paid time off to volunteer, and the company matches this
time with financial contributions to the volunteers’ programs.
• To encourage new ideas, launched global pitch contest to its 37,000-plus employees
to come up with innovative solutions to technology problems with a $50,000 prize.
• Employees get 36 days of holiday and vacation time following one year of
employment.24
Employee Engagement
Observing workers at a summer camp and an architecture firm in 1990, William Kahn
defined  employee engagement  as “the harnessing of organization members’
selves to their work roles; in engagement, people employ and express themselves
This employee looks highly engaged in her work. Note the
attention and focus she uses to uncover this fossil. Would
you find this type of work meaningful?
Arpad Benedek/Getty Images
Organizational Behavior: A Practical,
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57Values and Attitudes CHAPTER 2
physically, cognitively, and emotionally during role performance.”25 The essence of
this definition is the idea that engaged employees “give their all” at work. Further study
identified its components as four feelings:
• Urgency • Intensity
• Focus • Enthusiasm26
Have you ever felt at work or school that time seems to fly by? If yes, then you under-
stand why academics, consultants, and managers want to understand how they can harness
the power of employee engagement.
How Much of the U.S. Workforce Is Actively Engaged? The U.S. workforce
appears to be achieving close to the global average. Consulting firm Aon has traced data
on employee engagement around the globe for more than 15 years, studying millions of
employees. Recent figures for North America (of which the United States is the largest
component) and other global regions are shown in Table 2.3.27 Although the U.S. work-
force leads Europe, it is outpaced by Latin America, Africa-Middle East, and Asia Pacific.
What Contributes to Employee Engagement? Let’s use the Organizing Frame-
work for Understanding and Applying OB to identify key drivers of employee engagement.
Person Factors
• Personality.
• Positive psychological capital.
• Human and social capital.28
Situation Factors
• Job characteristics. People are engaged when their work contains variety and when
they receive timely feedback about performance.
• Leadership. People are more engaged when their manager is supportive and main-
tains a positive, trusting relationship with them.29
• Organizational climate can range from positive and inspiring to negative and deplet-
ing. Positive climates obviously foster engagement.
• Stressors.  Stressors  are environmental characteristics that cause stress.
Engagement is higher when employees are not confronted with a lot of stressors.30
What Outcomes Are Associated with Employee Engagement? Consulting
firms such as Gallup, Hewitt Associates, and Blessing White have been in the forefront of
collecting proprietary data supporting the practical value of employee engagement. For
example, Gallup estimates that an organization whose employees are highly engaged can

LOCATION OF EMPLOYEES
PERCENT OF HIGHLY OR MODERATELY
ENGAGED EMPLOYEES
1. The World 65%
2. North America 64
3. Europe 60
4. Asia Pacific 65
5. Latin America 75
6. Africa-Middle East 66
TABLE 2.3 Employee Engagement Around the World
Organizational Behavior: A Practical,
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58 PART 1 Individual Behavior
achieve 10 percent higher customer loyalty/engagement; 20 percent more productivity;
and 21 percent greater profitability.31 Other recent academic studies similarly showed a
positive relationship between employee engagement, performance, and physical and psy-
chological well-being and corporate-level financial performance and customer satisfaction.32
Now that you know engagement is correlated with performance at work, try the fol-
lowing Self-Assessment to measure your level of engagement with your studies. Can you
improve your performance in the classroom?
To What Extent Are You Engaged in Your Studies?
Please be prepared to answer these questions if your instructor has assigned Self-
Assessment 2.2 in Connect.
1. Is your level of engagement what you expected?
2. How might you increase it?
3. To what extent do your professors influence your level of engagement? How
might they foster more engagement from you?
SELF-ASSESSMENT 2.2 CAREER READINESS
How Can Managers Increase Engagement? As a manager you will have many
opportunities to improve employee engagement, even if you can’t offer the lavish perks of
the richest corporations. One way is to make sure inputs in the Organizing Framework are
positively oriented. Organizations do this by measuring, tracking, and responding to sur-
veys of employee engagement.
EXAMPLE The Ritz-Carlton hotel chain significantly lowered employee turnover (to
28 percent vs. an industry average of more than 55 percent) and increased both
customer satisfaction and customer spending by assessing potential candidates
against the company’s 12 employee values related to its gold standards for cus-
tomer service.33
Other ideas include creating career and developmental opportunities for employees,
recognizing people for good work, effectively communicating and listening, allowing peo-
ple to exercise during the workday, creating a physically attractive and stimulating work
environment, giving employees meaningful work to do, and empowering them.
• Freese and Nichols This Texas engineering
firm fosters engagement with generous
development opportunities. When engineer
Kim Patak wanted the company to adopt
greener water engineering, her bosses gave
her $10,000 and time off for a training pro-
gram on environmentally sound infrastructure
practices. “It felt like I was getting a gradu-
ate degree,” says Patak of her experience.
“It felt amazing to have that support of the
company, to have the trust in me.” Since
then, the company’s expertise and leader-
ship in sustainable water practices have
grown rapidly.34
• T-Mobile In hiring Ivan Beltran to manage its
flagship New York City store, T-Mobile gam-
bled on a candidate with “passion and love
for the brand” but no experience as a direc-
tor. Beltran explains why that paid off. “What
Companies Foster Employee Engagement in Different Ways
OB in Action
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59Values and Attitudes CHAPTER 2
Perceived Organizational Support
 Perceived organizational support  (POS) reflects the extent to which employees
believe their organization values their contributions and genuinely cares about
their well-being. Your POS would be negative if you worked for a bad boss or a company
that did not provide good health benefits or career opportunities. It would more likely be
positive if you worked for outdoor gear retailer REI (Recreational Equipment, Inc.) in one
of its more than 150 stores across the country. REI fully funds the company profit-sharing
plan (without employees needing to contribute their own pay); awards annual incentive
pay based on reaching individual, department, and company goals; subsidizes the majority
of employees’ medical plan costs; offers a referral bonus of $100 to $2,000; and gives gen-
erous discounts (30 to 50 percent) on REI gear and apparel.37
How Does POS Affect Employees? People are willing to work hard and commit to
their organizations when they believe the company truly cares about their best interests.
Quite simply, we are motivated by the norm of reciprocity to return the favor when someone
treats us well. This is why we are more likely to reciprocate with hard work and dedication
when our employer treats us favorably. But the favorable treatment must be voluntary, not
imposed by external constraints such as government or union rules. Voluntary actions dem-
onstrate that the giver genuinely values and respects us.
Benefits of POS Managers cannot go wrong in providing organizational support.
Research shows that it is positively associated with employee engagement, organizational
commitment, job satisfaction, organizational citizenship behavior, greater trust, innovation,
and lower tendency to quit.38
How can managers foster positive POS?
They can treat employees fairly, avoid political behavior, provide job security, empower
employees, reduce stressors in the work environment, eliminate abusive supervision, and
fulfill the psychological contract.39
it means to me is I work for a company that
truly values their employees, a company will-
ing to take risks.” Ranked among the best
workplaces in the nation’s largest city,
T-Mobile continues to embrace employees’
individuality. Says Jon Frier, executive vice
president of retail channels, “We tell people,
‘We want you to be you.’ We think people do
their best work when they can be them-
selves.”35
• Levi Strauss “If we can identify much earlier
people who are at risk of developing cancer,
then go into hyper care for them to make sure
that, if they do get the disease, you catch it at
stage zero or stage 1—where the cost of care
is much, much less . . . it’s much better for
everyone.” That’s not a doctor talking. It’s Chip
Bergh, CEO of jeans maker Levi Strauss, which
recently offered employees an optional free
DNA test. Says Bergh, “The more we can do
to keep our employees engaged and give
them benefits that are meaningful for them,
the better it is for us.”36
YOUR THOUGHTS?
1. What do you think about these approaches to
engagement?
2. Which company approach would be most effec-
tive for you as an employee? Explain.
Chip Bergh, Levi Strauss CEO
Richard Drew/AP Images
Organizational Behavior: A Practical,
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60 PART 1 Individual Behavior
2.4 THE CAUSES OF JOB SATISFACTION
Job satisfaction essentially reflects the extent to which an individual likes his or her job.
Formally defined, job satisfaction  is an affective or emotional response toward vari-
ous facets of your job. Notice that job satisfaction is not a monolithic concept. Rather, a
person can be relatively satisfied with one aspect of her or his job and dissatisfied with one
or more others.
Managers and organizations measure job satisfaction in one of two ways. The simplest
is to use a single overall rating, such as, “How satisfied are you with your job?” People
respond on a rating scale that might run from (1) very dissatisfied to (5) very satisfied.
Have you ever completed a survey like this? The second method assess satisfaction along a
series of facets. For example, researchers at Cornell University developed the Job Descrip-
tive Index (JDI) to assess satisfaction with the following: work, pay, promotions, cowork-
ers, and supervision.40 This type of assessment provides more detailed and actionable
information about job satisfaction. If desired, managers or researchers can add the ratings
across facets to arrive at a total score.
We use a facet measure of job satisfaction in the following Self-Assessment. Complet-
ing it will inform you about your level of satisfaction for a current or past job and make the
rest of the chapter more practical for you. Are you curious about where you stand?
THE BIGGER PICTURE
Job satisfaction is the most frequently studied outcome in the Organizing Framework. To help
you understand it better, this section provides you with the five major models of job satisfac-
tion. These models can help you manage others and yourself, leading to an increased sense
of satisfaction at work or school for you and others.
Discuss the five
causes of job
satisfaction.
LO 2-4
How Satisfied Are You with Your Present Job?
Please be prepared to answer these questions if your instructor has assigned Self-
Assessment 2.3 in Connect.
1. What are your relative levels of satisfaction with recognition, compensation, and
supervision?
2. Which of these three aspects of satisfaction is most important to you? Explain.
3. What can you do to increase your level of job satisfaction?
Source: Adapted from D.J. Weiss, R.V. Dawis, G.W. England and L.H. Lofquist, Manual for the Minnesota Satisfaction
Questionnaire (Minneapolis: Industrial Relations Center, University of Minnesota, 1967). Used with permission.
SELF-ASSESSMENT 2.3 CAREER READINESS
Do you think job satisfaction across the United States has been going up or down over
the past few years? A national survey conducted by the Conference Board attempted to
answer this question by asking 1,500 employed individuals to rank their job satisfaction
based on 23 components. Results revealed 51 percent were satisfied with their jobs in
Organizational Behavior: A Practical,
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61Values and Attitudes CHAPTER 2
2018, the seventh straight year that overall job satisfaction had increased among U.S. work-
ers.41 The significance of this finding will become more apparent after you read the final
section of this chapter.
At a Glance: Five Predominant
Models of Job Satisfaction
If you want insight into the drivers of your own job satisfaction or that of others, consider
five models of these causes, summarized as follows. We look at each in more detail in
Table 2.4.
TABLE 2.4 Five Models of Job Satisfaction
MODEL HOW MANAGEMENT CAN BOOST JOB SATISFACTION
Need fulfillment Understand and meet employees’ needs.
Met expectations Meet employees’ expectations about what they will receive
from the job.
Value attainment Structure the job and its rewards to match employee values.
Equity Monitor employees’ perceptions of fairness and interact with
them so they feel fairly treated.
Dispositional/genetic
components
Hire employees with an appropriate disposition.
(See qualifications below.)
Brief Review: Five Predominant
Models of Job Satisfaction
Let’s take a closer look at these models. It will increase your understanding if you personal-
ize each model to your own past experiences.
Need Fulfillment Need fulfillment models propose that satisfaction is determined by
the extent to which the characteristics of a job allow an individual to fulfill her or his
needs. Needs  are physiological or psychological deficiencies that arouse behavior.
All of us have different needs, which means that managers need to learn about employees’
needs if they want to increase employees’ job satisfaction.
EXAMPLE A recent annual survey of 600 individuals by the Society for Human
Resource Management asked employees to choose the aspects of their jobs that
were very important to their job satisfaction. For the third year in a row, the top choice
was respectful treatment of employees at all levels of the organization. Other impor-
tant contributors to job satisfaction included compensation/pay; trust between
employees and senior management; job security; and opportunities to use skills and
abilities.42 Are any of these aspects important to you?
Research generally supports the conclusion that need fulfillment is correlated with
job satisfaction.43
Met Expectations Met expectations  represent the difference between what an
individual expects to receive from a job, such as good pay and promotional oppor-
tunities, and what she or he actually receives. When expectations are greater than
what is received, a person will be dissatisfied. On the other hand, he or she will be satisfied
when outcomes are above and beyond expectations. Research strongly supports the con-
clusion that met expectations are significantly related to job satisfaction.44
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62 PART 1 Individual Behavior
Value Attainment The idea underlying value attainment  is that satisfaction results
from the perception that a job allows for fulfillment of an individual’s important values.
Research consistently supports this perspective. Managers can enhance employee satisfaction
by providing work assignments and rewards that reinforce employees’ values.
Equity Equity theory builds on the notion that satisfaction rests on how “fairly” an indi-
vidual is treated at work. If we perceive that our work outcomes, relative to our inputs,
compare favorably with someone else’s outcomes and inputs, we will be satisfied. Research
has strongly supported the theory behind this model.45 Managers thus are encouraged to
monitor employees’ fairness perceptions and to interact with employees in such a way that
they feel equitably treated. Chapter 5 explores how this can be accomplished.
Dispositional/Genetic Components Ever notice that some coworkers or friends
remain satisfied in situations where others always seem dissatisfied? The dispositional/
genetic model posits that job satisfaction is a function of both personal traits and genetic
factors. Indeed, the model implies that stable individual differences are at least as powerful
as characteristics of the work environment in their impact on satisfaction.
Few studies have tested these propositions in depth, but they do show that disposi-
tional factors are significantly associated with only selected aspects of job satisfaction.
Dispositions had stronger relationships with intrinsic aspects of a job (such as having
autonomy) than with extrinsic aspects (such as the receipt of rewards).46 Genetic factors
also were found to significantly predict life satisfaction, well-being, and general job satisfac-
tion.47 Overall, researchers estimate that 30 percent of an individual’s job satisfaction is
associated with dispositional and genetic components.48
EXAMPLE Recent gene-editing
experiments conducted in China
may have an impact on personal
traits and genetic factors in the
future. A Chinese scientist recently
announced he and his team had
used a powerful gene-editing tech-
nique called Crispr to alter the genes
of human embryos that were
implanted in female volunteers. One
of the volunteers gave birth to twin
girls and another volunteer is now
pregnant. In addition to the ethical
issues raised by such experiments,
the worldwide scientific community
is questioning the long-term effects
of such alterations, which if successful, would be inherited by future generations and
likely change individuals’ genetic makeup and personal traits.49
A Shorter Walk to Work
Now that we have looked at the predominant models of job satisfaction, let’s highlight one
element that allows people to balance their work and family lives: the opportunity to tele-
commute. Telecommuting  allows employees to do all or some of their work from
home, using advanced telecommunications technology and Internet tools to send
work electronically from home to the office, and vice versa.
• About half of the U.S. workforce telecommutes for at least part of the time spent
working.
As technology continues to advance, it’s likely scientists will
be able to edit the genes of human embryos to alter genetic
makeup including personal traits. Is this a good thing?
Gregor Fischer/Getty Images
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63Values and Attitudes CHAPTER 2
Applying OB
1. Assess the readiness of both people and jobs for
telecommuting. Not all employees or all jobs are
ready for this step.
2. Ensure employees have the proper technology
and support, and that the communications net-
work is secure.
3. Establish clear expectations about the goals of the
program and how it will work. For example, encour-
age telecommuters to keep regular work hours
and to set up a dedicated office space.
4. Make it a priority to establish trust on both sides.
Communicate regularly, give credit when due, and
avoid micromanaging.
5. Evaluate the program’s effectiveness with regular
and fair assessments of employee performance.52
Best Practices for Implementing Telecommuting
More and more employees are telecommuting from their homes
on a regular basis. Managers need to encourage regular
communications, ensure employees keep regular work hours,
and insist on workers setting up a dedicated office space.
Jupiterimages/Getty Images
• The number of people telecommuting has grown 140 percent between 2005 and
2016. Experts estimate that 50 percent of the U.S. workforce has a job compatible
with teleworking.
• The need for flexibility is a key reason people like telecommuting.50
• Studies confirm telecommuting enhances productivity and retention and decreases
absenteeism.51
These positive statistics imply that the opportunity to telecommute could improve job
satisfaction. To make such programs successful, consider the recommendations in the
Applying OB box below.
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64 PART 1 Individual Behavior
Thousands of studies have examined the relationship between job satisfaction and other
organizational variables. We consider a subset of the most important variables from the
standpoint of managerial relevance. Ten key outcomes correlate to job satisfaction—four
attitudinal and four behavioral, and two organizational-level outcomes. Job satisfaction has
significant correlations with:
Attitudes
• Motivation
• Job involvement
• Withdrawal cognitions
• Perceived stress
Behavior
• Job performance
• Organizational citizenship behavior (OCB)
• Counterproductive work behavior (CWB)
• Turnover
Organizational Level
• Accounting/financial performance
• Customer service/satisfaction
Attitudinal Outcomes of Job Satisfaction
We examine four attitudinal outcomes of job satisfaction that are important to OB
researchers and managers: motivation, job involvement, withdrawal cognitions, and
perceived stress.
Motivation Employee motivation represents a psychological process that arouses our
interest in doing something, and it directs and guides our behavior. As you might expect,
employee motivation positively correlates to job satisfaction. Managers can enhance
employees’ motivation with a host of techniques and recommendations discussed through-
out this book.
Describe work-related
outcomes associated
with job satisfaction.
LO 2-5
2.5 MAJOR CORRELATES AND CONSEQUENCES
OF JOB SATISFACTION
THE BIGGER PICTURE
The documented relationship between job satisfaction and other positive organizational out-
comes is good news. It means that employers have economic reasons for fostering job satis-
faction to improve results. You’re about to learn four key attitudinal and behavioral outcomes
and two organizational-level outcomes associated with this relationship.
Organizational Behavior: A Practical,
Problem-Solving Approach

What to Do, or Not to Do, about Sexual Harassment
When actor Kevin Spacey was accused of sexual
misconduct, Netflix was among the companies that
responded unequivocally, removing him as execu-
tive producer and star of its acclaimed series “House
of Cards” and then abandoning another deal with
him, despite losing $39 million in the process. When
it came to setting an internal sexual harassment
policy for its own employees, however, Netflix drew
a more confused reaction.
The new policy reportedly forbids employees to
ask each other for their phone numbers without prior
permission, to flirt, or to ask a colleague for a date
again if he or she has already said no. It encourages
employees to shout, “Stop! Don’t do that again,” if a
Problem-Solving Application
65Values and Attitudes CHAPTER 2
Job Involvement  Job involvement 
represents the extent to which an indi-
vidual is personally engaged in his or her
work role. Many years of research have
demonstrated that job involvement is mod-
erately related to job satisfaction.53 Manag-
ers can foster satisfying work environments
to fuel employees’ job involvement.
Withdrawal Cognitions Although
some people quit their jobs impulsively or in
a fit of anger, most first go through a pro-
cess of thinking about whether they should
quit.  Withdrawal cognitions  capture this
thought process by representing an indi-
vidual’s overall thoughts and feelings
about quitting. Low job satisfaction is
believed to be one of the most significant
contributors to thoughts of quitting.
EXAMPLE A recent survey of more
than 1,000 employed U.S. workers con-
ducted by Bamboo HR revealed that 31
percent of respondents left a job within
the first six months of being hired
because they thought their new boss
was a jerk; the job was different from
what they expected in the interview; or
they felt alone and not engaged with coworkers. Results suggest managers can help
increase job satisfaction by ensuring that new employees understand their new job
tasks and feel connected to others in the organization.54
Perceived Stress Stress has negative effects on many different OB-related out-
comes. For instance, it is positively related to absenteeism, turnover, coronary heart
disease, and viral infections. As you would expect, it also has a strong negative relation-
ship to job satisfaction and employee engagement. Managers should attempt to reduce
the negative effects of stress by improving job satisfaction and by encouraging employees
to detach from work during off-job time (stop thinking about work and don’t “take it
home with you”).55
Have you ever felt like this when studying for
exams? Unfortunately, too much stress impairs our
ability to perform at school or at work.
Kdonmuang/Shutterstock
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66 PART 1 Individual Behavior
Behavioral Outcomes of Job Satisfaction
Job satisfaction has a positive association with two constructive individual-level behavioral
outcomes—job performance and organizational citizenship behavior (OCB). It also has a
negative relationship with two potentially negative behaviors—counterproductive work
behavior (CWB) and turnover. The following discussion is more practical when you con-
sider that these individual-level outcomes in the Organizing Framework are driven by pro-
cesses at the group and organizational level, which, further upstream, are influenced by
environmental characteristics.
Job Performance One of the biggest controversies within OB research centers on the
relationship between job satisfaction and job performance. This is more complicated than
it might first appear; OB experts have identified at least eight ways in which these variables
are related. Here is what we know from research.58
A team of researchers analyzed data involving nearly 7,000 individuals over a three-
year period.59 They made two key findings:
• Job satisfaction and performance are moderately related. This supports the belief
that employee job satisfaction is a key workplace attitude managers should consider
when attempting to increase employees’ job performance.
• The relationship between them is complex. Researchers now believe both variables
indirectly influence each other through a host of person factors and environmental
characteristics contained in the Organizing Framework.
Organizational Citizenship Behavior Organizational citizenship behavior
(OCB)  is defined as “individual behavior that is discretionary, not directly or
explicitly recognized by the formal reward system, and that in the aggregate
colleague behaves inappropriately. But rumors
about a rule that said employees should not stare at
each other for more than five seconds at a time
drew particular mockery in the media, and among
Netflix employees as well. They reportedly began
deliberately staring at each other, counting to five,
and looking away.
Critics also wondered how employees could
network with each other for business purposes
without sharing phone numbers and questioned
why Netflix seemed to presume that every such
request was made for the purpose of dating or in
pursuit of sex.
Netflix responded by issuing this statement:
“We’re proud of the anti-harassment training we offer
to our productions. We want every Netflix production
to be a safe and respectful working environment. We
believe the resources we offer empower people on
our sets to speak up, and shouldn’t be trivialized.”56
Some, however, felt the policies themselves triv-
ialized the very real problems of sexual harassment
at work, which have been in especially sharp focus
since the rise of the #MeToo movement. A later
statement from Netflix said the five-second “rule”
was not a rule but rather a suggestion raised in a
training session about the new policy.57
Apply the 3-Step Problem-Solving Approach
Step 1: Define the problem in this case.
Step 2: Identify the OB concepts or theories that help explain the situation Netflix faced and its reaction.
Step 3: State what you would do if you were a human resource officer at Netflix responsible for set-
ting harassment policies.
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67Values and Attitudes CHAPTER 2
promotes the effective functioning of the organization.”60 This definition high-
lights two key points:
• OCBs are voluntary.
• OCBs help work groups and the organization to effectively achieve goals.
Examples of organizational citizenship behavior include such gestures as:
• Constructive statements about the department.
• Expression of personal interest in the work of others.
• Suggestions for improvement.
• The training of new people.
• Respect for the spirit as well as the letter of housekeeping rules.
• Care for organizational property.
• Punctuality and attendance well beyond standard or enforceable levels.61
Managers certainly would like employees to exhibit these behaviors, and research
clearly supports their value. OCBs have a moderately positive correlation with job satisfac-
tion.62 Moreover, they are significantly related to both individual-level consequences (per-
formance appraisal ratings, intentions to quit, absenteeism, and negative job attitudes) and
organizational-level outcomes (productivity, efficiency, lower costs, customer satisfaction,
and unit-level satisfaction and turnover).63
These results are important for two reasons. First, exhibiting OCBs is likely to
create positive impressions about you among your colleagues and manager. In turn,
these impressions affect your ability to work with others, your manager’s evaluation
of your performance, and ultimately your promotability. Second, the aggregate
amount of employees’ OCBs affects important organizational outcomes. It is thus
important for managers to foster an environment that promotes organizational
citizenship behaviors.
Volunteerism is a form of discretionary citizenship behavior that promotes a positive organizational
image. What personal values lead someone to volunteer to tend to a local community garden?
John Lund/Marc Romanelli/Blend Images LLC
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68 PART 1 Individual Behavior
Counterproductive Work Behavior You already know from personal experience and
OB research that the absence of satisfaction may be associated with some types of undesir-
able behavior, such as low employee engagement and performance. In contrast to the helping
nature of OCBs,  counterproductive work behavior (CWB)  harms other employees, the
organization as a whole, and/or organizational stakeholders such as customers and
shareholders. CWBs represent a particularly negative work-related outcome. Examples
include bullying, theft, gossiping, backstabbing, drug and alcohol abuse, destruction of orga-
nizational property, violence, deliberately poor or incorrect work, Internet surfing for per-
sonal reasons, excessive socializing, tardiness, sabotage, and sexual harassment.64
EXAMPLE Mastering the company’s mail order system, an IKEA worker issued him-
self nearly $400,000 in refunds for purchases made by customers.
EXAMPLE A former manager at a lab testing company created fake invoices and
expense reports to get reimbursed for more than $1.2 million.
EXAMPLE A U.S. postal worker in Washington, DC, bilked the Postal Service out of nearly
$40,000 in unearned wages by claiming he was serving jury duty on a lengthy federal
trial. The worker fabricated court paperwork to support his reimbursement claims.65
CWB has a strong negative relationship with job satisfaction, so managers should find
ways to reduce it. Here are three key ways.
1. Hire individuals who are less prone to engage in counterproductive behavior. Cogni-
tive ability is associated with many measures of success, so it is a logical quality to
screen for in hiring decisions. Personality tests also may be relevant.
2. Design jobs that promote satisfaction, and root out and eliminate managers who treat
others in an abusive manner.66
3. Respond quickly and appropriately if an employee does engage in CWBs, defining
the specific behaviors that are unacceptable and the requirements for acceptable
behavior.
Turnover Turnover can be a good thing when a low-performing person like George
Costanza from Seinfeld quits or is fired. This result enables managers to replace the
Georges of the world with better or more diverse individuals or to realign the budget. In
losing a good employee, however, the organization loses valuable knowledge and experi-
ence and it can be costly. Experts estimate that the cost of turnover for an hourly
employee is roughly 20 percent of his or her annual salary, higher for professional employ-
ees with specialized skills.67
Job satisfaction has a moderately strong negative relationship with turnover. Man-
agers are well served by enhancing employees’ job satisfaction, especially in today’s
competitive labor market.68 For example, global HR consulting firm Mercer surveyed
more than 160 large employers recently and found that voluntary turnover was at more
than 15 percent.69
All these considerations suggest several practical steps employers can take to tackle a
turnover problem. See the Applying OB box.
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69Values and Attitudes CHAPTER 2
Applying OB
1. Hire people who fit the organization’s culture.
Person–culture fit is discussed in Chapter 14.
2. Spend time fostering employee engagement.
Engaged employees are less likely to quit.
3. Hire selectively. Human resource data analytics
uses large data sets to answer questions like,
“Why are people quitting?” and “What skills are
needed to do the job?” But even small busi-
nesses can answer these questions. At Dash
Design, an interior design company with fewer
than 30 employees, owner David Ashen tackled
high turnover by asking employees where they
wanted to be in six months or three years, help-
ing them to reach those goals, offering flexible
schedules, and even allowing pet dogs in the
office.70
4. Provide effective onboarding.  Onboarding pro-
grams  help employees to integrate, assimilate,
and transition to new jobs by making them famil-
iar with corporate policies, procedures, culture,
and politics and clarifying work-role expectations
and responsibilities.71
5. Recognize and reward high performers, because
they are more likely to quit than average perform-
ers.72 In recognition of good performance, North
6th Agency, a public relations firm, awards employ-
ees points they can redeem for commuter passes,
groceries, and even cash or time off.73
Using Job Satisfaction to Reduce Employee Turnover
Organizational-Level Outcomes
of Job Satisfaction
Job satisfaction is positively associated with the organizational-level outcomes of
accounting/financial performance and customer service/satisfaction.
Accounting/Financial Performance Earlier we noted that job satisfaction was
moderately associated with an individual’s performance. It thus makes sense to hypoth-
esize that the aggregate level of employee job satisfaction should be positively associated
with a company’s accounting/financial performance. A study of 448 small- to medium-
sized business units supported this prediction. However, the association between job
satisfaction and this outcome is lower than between job satisfaction and productivity.74
This makes sense because many other factors besides job satisfaction impact accounting/
financial performance.
Customer Service/Satisfaction Why do we expect satisfied employees to provide
higher-quality service to customers? The answer is the spillover effect. Spillover occurs
when attitudes in one part of our lives spill over to another. Employees’ positive work
attitudes might spill over to improve their behaviors toward customers. In support of
this idea, research supports a positive association between job satisfaction and customer
satisfaction.75
Organizational Behavior: A Practical,
Problem-Solving Approach

70 PART 1 Individual Behavior
Takeaways for Me
Here are five additional things you can do to turn this chapter’s lessons into positive
change in your personal and professional life.
1. Identify your core values: This can help you make decisions about careers, companies
to work for, relationships, and ways to manage others.
2. Realize the power of your beliefs and intentions: Your intentions will drive your behav-
ior, but it is beliefs that create your intentions. If you want to change a behavior, such
as losing weight or studying more, the first step is to analyze and change your beliefs
about the behavior.
3. Engagement is partly a choice on your part, and it all starts with doing meaningful work:
Identify what types of work you find meaningful.
4. If your manager or organization is not providing support, consider moving on: There are
many great companies that understand the value of organizational support.
5. Before quitting a job, consider doing a cost–benefit analysis: Write down the costs of
staying and compare them to the perceived benefits of leaving. Making an emotional
decision might feel good in the short run, but it is less likely to lead to positive results.
Takeaways for Managers
There are five key implications for managers.
1. Hire people whose values match the values that underlie the organization’s culture: Such
employees are more likely to be productive and to stay.
2. Influence employees’ behavior by reinforcing appropriate beliefs: For example, if you
want to improve employee retention, underscore the value of staying at the company.
3. Employee commitment is strongly associated with emotional connections at work:76 Cre-
ate positive team spirit and engage in social activities that promote friendships among
employees.
4. Employees won’t be engaged if you display negative emotions: Stay positive and model
engagement.
5. There is a trend for employees to quit less than one year on the job: Discuss their expec-
tations when you hire and socialize new employees effectively. Socialization is dis-
cussed in Chapter 14.
Personal values, attitudes, and intentions play a significant role in affecting individual and
organizational outcomes at work. Here are some key points to consider.
2.6 MAKING THE CONNECTION: HOW DO VALUES AND
ATTITUDES AFFECT WORK-RELATED OUTCOMES?
Describe the
implications of values
and attitudes for you
and managers.
LO 2-6
Organizational Behavior: A Practical,
Problem-Solving Approach

71Values and Attitudes CHAPTER 2
You learned that employee engagement is a work-
place attitude that motivates people to identify with
and immerse themselves in their work. Values and
attitudes directly affect a variety of organizational
outcomes, and companies pay attention to them to
achieve improved performance. Companies track
the work attitude of job satisfaction because it posi-
tively correlates with other positive workplace atti-
tudes (motivation, job involvement, reduced stress)
and behavior (job performance, OCB, customer sat-
isfaction, reduced CWB and turnover). Reinforce
your learning with the chapter’s Key Points below.
Next, consolidate your learning using the Organiz-
ing Framework, shown in Figure 2.4. Then, chal-
lenge your mastery of the material by answering
the chapter’s Major Questions in your own words.
Key Points for Understanding
Chapter 2
You learned the following key points.
2.1 PERSONAL VALUES
• Values are abstract ideals that guide your
thinking and behavior across all situations.
• Schwartz proposed that 10 core values
guide behavior across contexts and time
(see Figure 2.2).
• The 10 core values each relate to one of four
themes: self-transcendence, conservation,
self-enhancement, and openness to change
(see Figure 2.2).
• Managers can use the Schwartz model to moti-
vate employees and to reduce the chances of
employees’ experiencing conflict between
their values and their work assignments.
2.2 PERSONAL ATTITUDES AND
THEIR IMPACT ON BEHAVIOR
AND OUTCOMES
• Attitudes represent your feelings or opinions
about people, places, and objects and range
from positive to negative. Workplace attitudes
are outcomes in the Organizing Framework
for Understanding and Applying OB.
• The three components of attitudes are affec-
tive, cognitive, and behavioral.
• Cognitive dissonance represents the psycho-
logical discomfort an individual experiences
when his or her attitudes or beliefs are incom-
patible with his or her behavior.
• Intentions are the key link between attitudes
and behavior in Ajzen’s model. Three determi-
nants of the strength of an intention are atti-
tude toward the behavior, subjective norms,
and perceived behavioral control (Figure 2.3).
2.3 KEY WORKPLACE ATTITUDES
• Organizational commitment reflects how
strongly a person identifies with an organization
and is committed to its goals. It is influenced by
a host of factors in the Organizing Framework,
including personality, leader behavior, organiza-
tional culture, meaningfulness, organizational
climate, and psychological contracts.
• Employee engagement occurs when employ-
ees give it their all at work. It includes feelings
of urgency, focus, intensity, and enthusiasm.
• Employee engagement is influenced by per-
sonal factors and environmental characteris-
tics contained in the Organizing Framework.
• Perceived organizational support reflects how
much employees believe their organization
values their contributions and cares about
their well-being. Employees are happier and
work harder when they feel supported.
2.4 THE CAUSES OF JOB
SATISFACTION
• Job satisfaction is an affective or emotional
response toward various facets of the job. It is
a key OB outcome.
• The five major causes of job satisfaction are
need fulfillment, met expectations, value
attainment, equity, and dispositional/genetic
components.
What Did I Learn?
Organizational Behavior: A Practical,
Problem-Solving Approach

72 PART 1 Individual Behavior
• Telecommuting allows people to balance their
work and family lives. It uses telecommunica-
tion technology and Internet tools to send and
receive work between home and office.
2.5 MAJOR CORRELATES AND
CONSEQUENCES OF JOB
SATISFACTION
• Job satisfaction is significantly associated
with the following attitudinal variables: moti-
vation, job involvement, withdrawal cogni-
tions, and perceived stress.
• Job satisfaction is significantly related to five
key behavioral outcomes: job performance,
organizational citizenship behavior, counter-
productive work behavior, turnover, and
customer satisfaction.
2.6 HOW DO VALUES AND
ATTITUDES AFFECT WORK-
RELATED OUTCOMES?
• Identifying your core values will help you
make smart decisions about career moves
and relationships in both your personal and
professional life.
• Recognizing the power of your beliefs and
how they influence behavior will help you zero
in on the type of work you find meaningful.
• Hiring people whose values and attitudes align
with an organization’s culture encourages
employee motivation, productivity, and retention.
The Organizing Framework for
Chapter 2
As shown in Figure 2.4, values, personal atti-
tudes, and intentions serve as inputs that lead
to a host of outcomes. Although this chapter
focused on workplace attitudes as an outcome,
future chapters will look at other outcomes in
more detail.
Challenge: Major Questions
for Chapter 2
You should now be able to answer the following
major questions. If you can’t, have you really
processed and internalized the lessons in the
chapter? Refer to the Key Points, Figure 2.4, the
chapter itself, and your notes to revisit and
answer the following major questions:
1. What role do play in influencing my behavior?
2. How do personal attitudes affect workplace
behavior and work-related outcomes?
3. Why should management pay attention to
workplace attitudes?
4. How can changes in the workplace improve
job satisfaction?
5. What work-related outcomes are associated
with job satisfaction?
INPUTS PROCESSES OUTCOMES
Person Factors
• Values
• Personal Attitudes
• Intentions
Situation Factors
Individual Level
Group/Team Level
Organizational Level
Individual Level
• Task performance
• Workplace attitudes
• Well-being/flourishing
• Citizenship behavior/counter-
productive behavior
• Turnover
Group/Team Level
Organizational Level
• Accounting/financial performance
• Customer service/satisfaction
FIGURE 2.4 Organizing Framework for Understanding and Applying OB
©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors.
Organizational Behavior: A Practical,
Problem-Solving Approach

73Values and Attitudes CHAPTER 2
Sam Walton founded Walmart in Rogers, Arkansas, and
the company grew from that single store in 1962 to
more than 11,300 locations spanning 27 countries by
2019. Today, the multinational retailer is the world’s
largest company by revenue—generating over $500
billion in 2018—and the largest private employer with
more than 2.2 million employees. The retailer also
owns Sam’s Club, a chain of warehouse clubs that sell
groceries and general merchandise in bulk.77
Walmart is known for its “everyday low prices,” but
critics say prices are not all that’s low at the retailer.
Individual employees, advocacy groups, and govern-
ment agencies have brought numerous labor-related
lawsuits against the company, scrutinizing its internal
values. Let’s take a closer look at what’s going on at
the massive retailer.
A SERIES OF WORKPLACE ABUSES
Walmart prides itself on its values. The retailer states that,
“We define culture as our values in action. It’s how we
deliver superior customer service, create a great front-
line work environment and improve performance . . .”
Moreover, Walmart’s stated values are centered on
being “guided by good,” which includes “respect for the
individual” and “acting with integrity.”78 Allegations
against the company suggest a different story.
Consider a report by a workers’ advocacy group that
says Walmart “routinely refuses to accept doctors’ notes,
penalizes workers who need to take care of a sick family
member and otherwise punishes employees for lawful
absences.” The report is based on a survey of more than
1,000 Walmart employees and accuses Walmart of vio-
lating the American with Disabilities Act and Family Med-
ical Leave Act, among other labor laws.79
Katie Orzehowski was a cashier at the Walmart in
North Huntingdon, Pennsylvania, and completed the
employee survey. She suffered a miscarriage in 2016
and provided doctors’ notes and hospitalization
records to excuse her missed shifts, but the company
refused to excuse her absences. She was so worried
that another absence would get her fired that she
returned to work, while still in recovery. “I still had a lot
of bleeding going on, and that’s embarrassing,”
Orzehowski told The New York Times.80
Walmart’s focus on the bottom line over its
employees’ welfare didn’t end with those who suffered
from an illness. The Equal Employment Opportunity
Commission (EEOC) filed a lawsuit against the retailer
in September 2018 alleging it unlawfully discriminated
against pregnant workers in Wisconsin. The complaint
was filed on behalf of Alyssa Gilliam, who became
pregnant in 2015. Gilliam requested light duty or trans-
fer to a less physically demanding job in which she
would avoid heavy lifting due to her pregnancy. The
company declined to accommodate her in any way,
including providing her with a chair, shorter work days,
or additional breaks. The EEOC alleges that Walmart
retaliated by cutting Gilliam’s benefits, reducing her
work hours, and eventually forcing her to take unpaid
leave. Interestingly, Walmart had a robust light duty
program that allowed workers with lifting restrictions to
be accommodated, “But Walmart deprived pregnant
workers of the opportunity to participate in [this] pro-
gram. This amounted to pregnancy discrimination,
which violates federal law,” said the EEOC.81
Gilliam wasn’t the only employee denied a chair.
Adam Catlin, who suffers from cerebral palsy, has been a
Walmart greeter in Selinsgrove, Pennsylvania, for almost
ten years. Catlin was told in 2019 that due to a change in
corporate policy, he would need to stand for his entire
eight-hour shift and lift up to 25 pounds or be fired. Cait-
lin’s mother urged Walmart customers on Facebook to
support her son. “I know corporate decisions are corpo-
rate decisions, if [that’s] where this originated from, but
does anyone ever make any decisions anymore by put-
ting any heart or care into it?” she wrote.82
WALMART’S ALLEGED BAIT
AND SWITCH
Walmart CEO Doug McMillon’s compensation for fiscal
2018 was $22.8 million, which is 1,188 times the
annual compensation of its median employee. In con-
trast, CEO pay at S&P firms averaged 361 times more
than the average employee in 2018.83 Overall, the
company “has been the defendant in scores of cases,
including class actions, or group suits, accusing the
company of wage-law violations,” according to Jona-
than Tasini, president of the Economic Future Group.84
Walmart decided to raise its minimum wage from
$10 to $11 in 2018. With much fanfare, CEO McMillon
stated, “Today, we are building on investments we’ve
been making in associates, in their wages and skills
development . . . It’s our people who make the differ-
ence and we appreciate how they work hard to make
every day easier for busy families.”85 Now consider
that Walmart closed dozens of its Sam’s Club ware-
houses on the same day it announced the pay
increases.86 This brings into question whether the
PROBLEM-SOLVING APPLICATION CASE
Walmart’s Values Come under Scrutiny
Organizational Behavior: A Practical,
Problem-Solving Approach

74 PART 1 Individual Behavior
B. Cases have protagonists (key players), and prob-
lems are generally viewed from a particular pro-
tagonist’s perspective. You need to determine
from whose perspective—employee, manager,
team, or the organization—you’re defining the
problem.
C. Use details in the case to identify the key prob-
lem. Don’t assume, infer, or create problems that
are not included in the case.
D. To refine your choice, ask yourself, Why is this a
problem? Answering this question helps refine
and focus your thinking. Focus on topics in the
current chapter, because we generally select
cases that illustrate concepts in the current
chapter.
STEP 2: Identify causes of the problem by using
material from this chapter, which has been summarized
in the Organizing Framework shown in Figure 2.4.
Causes will tend to appear in either the Inputs box or
the Processes box.
A. Start by looking at Figure 2.4 to decide which
person factors, if any, are most likely causes of
the defined problem. For each cause, ask your-
self, Why is this a cause of the problem?
For example, if you think personal attitudes—an
input in the Organizing Framework—are a cause,
ask yourself why. This might lead you to the con-
clusion that Mayer’s attitudes about telecommut-
ing are related to her prior work experience.
This may have led her to make decisions that
are adversely affecting employees. Asking why
several times will lead you to a more complete
list of causes.
B. Follow the same process for the situation factors.
C. Because no processes were specifically dis-
cussed in this chapter, you can skip an analysis
of this component of the Organizing Framework.
D. To check the accuracy or appropriateness of the
causes, be sure to map them onto the defined
problem.
STEP 3: Make recommendations for solving the
problem. Consider whether you want to resolve
it, solve it, or dissolve it (see Section 1.5). Which
recommendation is desirable and feasible?
• Given the causes identified in Step 2, what are
your best recommendations? Use the material in
Chapter 2 (or in Chapter 1) to propose a solution.
• Find potential solutions in the OB in Action and
Applying OB boxes within the chapter. These fea-
tures provide insights into what other individuals or
companies are doing regarding the topic at hand.
• Create an action plan for implementing your
recommendations.
retailer had positive intentions in raising employee
pay. The United Food and Commercial Workers Inter-
national Union, for example, called the wage increase
a “public relations stunt” meant to distract from the
closing of 63 stores.87 The closures resulted in approx-
imately 10,000 workers losing their jobs.88 The timing
of the announcement wasn’t the only issue as many
Sam’s Club employees had no idea their stores would
be closed until the day of the announcement. Accord-
ing to The Times, some workers showed up for work
only to be informed that their stores were closed.89
POOR JOB SATISFACTION IMPACTS
CUSTOMER SERVICE
Walmart’s minimum wage hikes may raise the pay of
some of its workers, but they may not be enough to
solve the retailer’s continued customer service prob-
lem, according to Forbes.90 Walmart’s American Cus-
tomer Satisfaction Index (ACSI) score dropped between
2016 and 2017. The ASCI measures the quality of
products and services American consumers receive by
major department and discount retailers. The drop
placed Walmart at the bottom of a list of department
and discount retailers (even below a bankrupt Sears).
Making Change at Walmart (MCAW), an organiza-
tion dedicated to transforming the lives of Walmart
employees, believes the company’s poor customer
service ratings are related to the way it treats its work-
ers. “Walmart lacks the ability to improve its customer
experience when it refuses to focus on what we all
know to be true—quality jobs create quality experi-
ences for both shoppers and workers,” says MCAW
director Randy Parraz.91 Walmart needs to do more for
its employees if it wants to improve their attitudes with
customers. For example, wages and benefits are so
poor at Walmart that thousands of its employees qual-
ify for food stamps, Medicaid, and other government
assistance programs, according to MCAW.92
Walmart says it has a “common purpose of saving
people money so they can live better.”93 It seems its
employees will need to live better as well if the com-
pany wants to continue its success.
APPLY THE 3-STEP PROBLEM-
SOLVING APPROACH TO OB
STEP 1: Define the problem.
A. Look first at the Outcome box of the Organizing
Framework in Figure 2.4 to identify the important
problem(s) in this case. Remember that a prob-
lem is a gap between a desired and a current
state. State your problem as a gap, and be sure
to consider problems at all three levels. If more
than one desired outcome is not being accom-
plished, decide which one is most important and
focus on it for steps 2 and 3.
Organizational Behavior: A Practical,
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75Values and Attitudes CHAPTER 2
LEGAL/ETHICAL CHALLENGE
What Should Management Do About
an Abusive Supervisor?
This challenge involves the behavior of Bernadine
Pearce. Pearce was the supervisor of Michelle
Ruppert, a clerk in the Office of the Tax Collector in the
Borough of Point Pleasant, New Jersey. Pearce worked
at the local government for about 40 years.
Ruppert filed a lawsuit claiming that her boss and
the office allowed a hostile work environment to exist.
She had worked at the office for about three years at
the time of the suit.
The hostility allegedly began on Ruppert’s first day
at work. Upon arriving, Pearce showed her the “Wall of
Shame.” Placed conspicuously in the main office, it
contained a funeral urn with the “ashes of problem
employees.” Ruppert noted that it resembled “the way
Adolf Hitler treated the disabled and the Jews during
the Holocaust,” with “various nameplates of the
employees who were ‘exterminated’” or fired by
Pearce.
The lawsuit alleges that Pearce stated “that all per-
sonnel of her office should be ‘perfect humans,’ as she
believed she was.”94
Media reports about the situation allege that
“Pearce threw papers at Ruppert and called her a
‘waste of a human being,’ encouraged Pearce’s daugh-
ter and coworker to give Ruppert the middle finger,
and referred to Ruppert as a ‘mess up’ who should just
‘quit her job.’”95
Ruppert ultimately experienced stress and anxiety
and took sick leave for medical and psychiatric treat-
ment. When she returned to work, Ruppert alleges that
Pearce relocated her desk so that she had to look at
the Wall of Shame, which now contained her name
along with the others.96
Addressing the Challenge
What would you do if you were the manager responsi-
ble for the entire office?
1. Settle the lawsuit and allow Bernadine Pearce to
retire. While Pearce’s behavior is bad, she did
give the city 40 years of her life.
2. According to what we learned about counterpro-
ductive behavior, you would settle the lawsuit
and fire Pearce. Assuming the allegations are
accurate, Pearce’s behavior deserves to be
punished.
3. Settle the lawsuit and then retire because you
allowed this abusive situation to exist.
4. Fight the lawsuit. If nothing else, this may help
you reduce the payment that will be awarded to
Ruppert.
5. Invent other options.
Organizational Behavior: A Practical,
Problem-Solving Approach

LO 3-1 Distinguish individual differences based on their relative stability.
LO 3-2 Explain how multiple intelligences affect your performance.
LO 3-3 Illustrate ways in which personality can affect your performance at
school and work.
LO 3-4 Describe the impact of core self-evaluations on performance.
LO 3-5 Realize the benefits of emotional intelligence.
LO 3-6 Explain how understanding emotions makes people more effective.
LO 3-7 Describe the implications of individual differences and emotions for you
and managers.
After reading this chapter, you should be able to:
The Organizing Framework for Understanding and Applying OB shown in Figure 3.1 summarizes
the key concepts in Chapter 3. This chapter builds on Chapters 1 and 2 and explores numerous
additional person factors, such as intelligence, personality, proactive personality, self-efficacy,
self-esteem, locus of control, and emotional intelligence. We add to this an important individual-
level process—emotions. Personality and the other person factors are related not only to
emotions, but to a host of other processes and outcomes across levels in the Organizing
Framework. While reading this chapter pay attention to the way these person-factor inputs
influence individual-level outcomes, such as task performance, workplace attitudes ( job
satisfaction), well-being/flourishing, citizenship behaviors/counterproductive behaviors,
turnover, and career outcomes. These inputs might contribute to explaining group/team conflict
and performance, as well as organizational-level outcomes such as poor firm performance and
low customer satisfaction.
3 Individual Differences and Emotions
C
ai
a
Im
ag
e/
Im
ag
e
So
ur
ce
Organizational Behavior: A Practical,
Problem-Solving Approach

77Individual Differences and Emotions CHAPTER 3
FIGURE 3.1 Organizing Framework for Understanding and Applying OB
© 2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors.
INPUTS PROCESSES OUTCOMES
Person Factors
• Intelligences
• Personality
• Proactive personality
• Core self-evaluations
• Self-efficacy
• Locus of control
• Self-esteem
• Emotional intelligence
Situation Factors
Individual Level
• Emotions
Group/Team Level
• Group/team dynamics
Organizational Level
Individual Level
• Task performance
• Work attitudes
• Well-being/flourishing
• Turnover
• Career outcomes
Group/Team Level
• Group/team performance
• Group satisfaction
Organizational Level
• Financial performance
• Survival
• Reputation
A seemingly infinite number of characteristics make us who we are as individuals. It therefore is helpful to organize these
individual differences so we can better understand and use them to manage people at work. One method is to categorize
characteristics in terms of their malleability. These photos illustrate this method. For instance, just by looking we can deter-
mine the gender of these two people. We also can approximate their ages. Your height and age are fixed traits, characteris-
tics we cannot change. These photos also show very different emotions. The woman appears to be surprised and the man
angry. Unlike height and age, our emotions can and do change easily and often. Managers can use that knowledge in mul-
tiple ways, such as selecting and hiring people on relatively fixed traits (intelligence), and training them on the appropriate
or most effective emotions to display with customers. (left): Ingram Publishing; (right): Gulfimages/Alamy Stock Photo
Organizational Behavior: A Practical,
Problem-Solving Approach

Winning at Work
Interview Questions I Should Prepare to Answer and ASK
What to Consider Asking
You of course will think of many questions of your own.
However, you are well served to consider including these
to gain important insights that will help you decide should
you receive an offer, and help you understand what to
expect if you accept. The questions you ask also provide
the interviewer with valuable insights about you.
1. “Why are you hiring for this job?” Is it a new position
due to growth, which could bode well for you, the
organization, and future opportunities? Or, are they
trying to fill an existing position due to a promotion
or turnover? It could be valuable to learn which—
promotions are good (you’ll likely want one yourself)
and if turnover is because the boss is a nightmare you
may want to reconsider, especially if it is a pattern.
2. “What is the career path?” Essentially you want to
know where do employees go after this role, what is
the next step? It’s likely you prefer to see opportunities
beyond this job, and asking this question can help you
learn whether that is the norm within the organization.
3. “What are the performance expectations and how are
they measured?” Clarity and specifics are preferred,
and wish-washy, unclear answers may be cause for
concern. You don’t want surprises when it comes time
for your performance review, as money, promotions,
and opportunities may be at stake.
4. “What do you like and dislike about working here?”
Just like the interviewer wants to know your strengths
and weaknesses, you want to know theirs. Do their
strengths align with or conflict with your interests, such
as development, teamwork, and collegiality?2
You’ve likely heard that interviews are a two-way street—
the prospective employer interviews you and vice versa.
And although the list of potential interview questions is lim-
itless, a combination of research, practice, and experience
from experts can help narrow the list and help you deter-
mine what to ask and how to prepare your resume.
What to Consider When Answering the
Following Questions
Many questions you can anticipate, some you can’t, but
either way the following should help. First, we provide the
questions or requests from the interviewer, followed by
what she or he presumably wants to know and how you
might respond.
1. “What are your strengths?” Identify two or three key
skills noted in the job description and provide exam-
ples. Also use your OB knowledge and consider shar-
ing some individual differences (Chapter 3) along with
a brief Illustration, such as: “I am an extrovert and
thrive in groups and teams.” Or, “I am a motivated and
skilled problem solver.” This book will definitely help.
2. “What are your weaknesses?” Don’t dare say, “My
strengths are my weaknesses,” “I work too hard,” or
“I’m a perfectionist.” Interviewers want to check you’re
honest, humble, and ensure you are motivated to work
on your weaknesses. Be honest without torpedoing
your opportunity. Whatever you choose, be sure to ex-
plain how you became aware of it and what you are
doing to address it.
3. “Describe yourself.” Two approaches to consider. One,
describe the professional path leading to where you
are now. What piqued your interests and how did your
studies or (work) experiences influence your path? Or,
you might pick 2 or 3 key attributes you possess and
explain how they will benefit the organization if hired.
4. “Tell me how you dealt with a challenge.” Interviewer
wants to learn how you deal with pressure and conflict.
Think of and describe a situation, task, action, and re-
sult (STAR method). Example situations to consider:
(a) difficult team member for a school project, sports team,
or at work; (b) pressure situation where you performed
well; or (c) met a tight and consequential deadline.
5. “Describe your dream job.” The prospective employer
is trying to determine fit, that is, do your interests align
with the job and organization for which you are inter-
viewing. Accordingly, be sure whatever you choose is
relevant to and emphasizes both what you would re-
ceive from the “dream job” and what you would pro-
vide. Put differently, the dream job is not all about you.
Also explain what the employer would get in return.1
What’s Ahead in This Chapter
In this chapter you’ll explore individual differences
(IDs), which are the many attributes that distinguish
all of us from one another. Recognizing and under-
standing IDs is critical to effectively applying OB
knowledge and tools. For managers, it is fundamen-
tal to attracting, motivating, retaining, and improving
the performance of others.
Your exploration of IDs begins with an explana-
tion of the relative stability of these differences. Next,
you’ll delve into a subset of individual differences
researchers have found to be particularly important
in the work context: (1) intelligence, (2) cognitive
abilities, (3) personality, (4) core self-evaluations,
(5) attitudes (also covered in Chapter 2), and
(6) emotions (including emotional intelligence).
Organizational Behavior: A Practical,
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79Individual Differences and Emotions CHAPTER 3
THE BIGGER PICTURE
You undoubtedly notice that your friends behave differently in different situations, whether in
class, watching a sporting event, cramming for an exam, or coping with a new job. However,
what you probably don’t pay much attention to are the characteristics and behaviors that
don’t change. To help you understand and use this knowledge, we’ll arrange the individual
attributes on a continuum based on their relative stability. At one end are relatively fixed or
stable traits (like intelligence), and at the other end are more flexible states (like emotions),
with various trait-like and state-like characteristics in between.
3.1 THE DIFFERENCES MATTER
 Individual differences (IDs)  are the many attributes, such as traits and behaviors,
that describe each of us as a person. IDs are a big part of what gives each of us our
unique identities, and are fundamental to the understanding and application of OB. So,
what is it that makes us different? Is it our genetics or our environment? The answer is
both.3 And while the way you are raised, along with your experiences and opportunities,
helps shape who you are, a large volume of research on twins suggests genetics matters
more. But what is more important at work is recognizing the many attributes that make us
unique individuals, regardless of whether they are due to nature or nurture.
To help you understand and apply the knowledge you will gain about IDs, we organize
and discuss them according to Figure 3.2.
On the left-hand side of Figure 3.2 we arrange individual differences on a contin-
uum. At the top of the continuum are intelligence and cognitive abilities, which are
relatively fixed. This means they are stable over time and across situations and are dif-
ficult to change. At the bottom are attitudes (which we discussed in Chapter 2) and
emotions, which are relatively flexible. Emotions change over time and from situation
to situation, and thus can be altered more easily. To elaborate, you aren’t more or less
intelligent at school than you are at work or home, although your emotions commonly
change within and between all these places. Both your intelligence and emotions, as
well as many other individual characteristics influence the many outcomes included in
the right side of Figure 3.2.
The distinction between relatively fixed and flexible individual differences has great
practical value. Wise managers know they have little or no impact on fixed IDs. You can’t
change an employee’s level of intelligence or remake an employee’s personality.4 But you
can help employees manage their attitudes and emotions. For instance, many effective
managers (and their employers) select employees based on positive, job-relevant, but rela-
tively stable IDs. This hiring strategy enables managers to capitalize on the personal
strengths someone brings to a job because these stable strengths affect behavior and
performance in almost every work situation.5 Intelligence and analytical abilities, for
example, are beneficial in front of customers, in teams with coworkers, and when working
alone on a project.
In contrast, managers can have greater influence on the relationships between relatively
flexible IDs and individual-level work outcomes, like performance and job satisfaction.
They can do this by implementing policies that raise employees’ core self-evaluations,
attitudes, and emotions. For example, as a manager you’ll likely see better results from
Distinguish individual
differences based on
their relative stability.
LO 3-1
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80 PART 1 Individual Behavior
assigning work with new products and new markets to employees who are open to experi-
ence than to employees with low levels of this attribute. Similarly, you could help build
new employees’ confidence about selling to tough customers if you role-model how to do
this effectively, give them experience presenting to easy customers first, and provide verbal
encouragement before and constructive feedback after.
Managers are wise to pay attention to the effect of employee attitudes and emotions
on turnover. Low job satisfaction and high negative emotions can predict which employees
are likely to quit. Thankfully, however, attitudes and emotions can be changed more easily
than other IDs. You can apply the same knowledge in reverse during job interviews, to
help determine whether you’d like to work for that person. Read the following Applying
OB box and find out how.
Environment/External Context
Organizational/Internal Context
Important Individual
Di�erences at Work
• Intelligence
• Cognitive abilities
• Personality
• Core self-evaluations
> Self-efficacy
> Self-esteem
> Locus of control
> Emotional stability
• Attitudes
• Emotions
Individual-Level
Work Outcomes
• Job performance
• Job satisfaction
• Turnover
• Organizational citizenship
behaviors
• Counterproductive
work behaviors
Relatively
Fixed
Relatively
Flexible
FIGURE 3.2 Relative Stability of Individual Differences
Applying OB
And if it is you should be concerned that they have
(bad) manager issues.
We encourage you to look out for potential “bad”
bosses, and to help in that endeavor we describe four
common types:
• Marionette managers are puppets to their own
bosses or to the organization. They don’t challenge
You may have heard “People quit managers, not their
jobs or companies.” Of course, employees quit for a
host of reasons, but managers are a major one for
most. A Gallup poll of more than 1 million employees
who quit revealed 75% did so because of their bosses,
not the job itself.6 This means you should do your best
to determine if turnover is an issue at any prospective
employer, especially in the area in which you will work.
Does Your Potential Boss Get the Job?
CAREER READINESS
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81Individual Differences and Emotions CHAPTER 3 81Individual Differences and Emotions CHAPTER 3
Next, let’s discuss an individual difference which has historically received consider-
able attention at school and less at work—intelligence.
Don’t wear rose-colored glasses and overlook red
flags, but don’t be overly harsh either. Finding a
boss willing to be a real advocate and champion
for you and your career is invaluable. Make a list of
your prospective boss’s pros and cons and review
it honestly.
3. Learn what is expected of you. Learning what the
job entails seems obvious but is often overlooked.
Ask, “What are your key expectations of me?” And,
“If I’m a top performer, which I expect to be, what
should my track record look like in 30, 60, or
90 days?” Ask, “How do people get ahead here?
How do they fall behind?”
4. Ask where others have gone. Assuming your
manager has been in the position for a while, he
or she has likely managed other employees in
the position for which you are interviewing. Ask:
“Where have others you’ve managed gone?” You
want to know whether they have been promoted
or quit the organization. The first is encouraging,
the second a potential red flag. It may be a sign
of a miserable boss, or at least one who is not
especially developmental.
5. Meet people like you. Do what you can to meet and
learn from other employees—those doing the same
job today or in the recent past. Sometimes you can
find information online, and other times the compa-
ny’s interview process may provide opportunities to
meet and interact with these employees. Learn what
was good, bad, ugly. Ask, “If you were me, what
would you want to know?” And, “If I’m going to be
successful, then what do I need to do and not do
with this person as my manager?” You may not get
much detail, but it is worth trying to learn this infor-
mation. Your own future may depend on it.
any policies or practices and won’t stand up for
you. They are loyal to themselves, not you, and
follow orders and expect you to do the same.
• King Kong managers feel superior to you and
other subordinates; they have reached the top and
expect you to bow down.
• Keeping with the superiority theme, Superman
bosses believe the world and everyone in it (you)
revolves around them. They are the best and thus
most qualified to make decisions. And making
matters worse, they not only feel entitled to recog-
nition and credit, they will steal it if possible.
• Then, there are Taskmasters who micromanage
and often suffocate and kill employee creativity.
They are consumed with bottom line results and
will grind you up to achieve them.7
Now that we’ve described several versions of night-
mare bosses, we offer the following tips and questions
to help you learn whether the interviewer is worthy of
being your manager.
1. Determine what you want. If you simply want a
job or aren’t sure what you want in a job and where
you want it to lead, you are obviously more likely
to accept a position with a bad boss. To gain more
clarity about your boss, ask yourself what kind of
relationship you want with him or her. Do you want
someone hands-on, nurturing, and developmental?
Or do you want a boss who is hands-off and will let
you do your own thing? Asking these questions is
a critical first step in evaluating your potential new
boss.
2. Look for good and bad. While signing on with a
bad boss can make you miserable, missing the
opportunity to work with a good boss is costly too.
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82 PART 1 Individual Behavior
3.2 INTELLIGENCES: THERE IS MORE
TO THE STORY THAN IQ
Although experts do not agree on a specific definition, many say  intelligence  represents
an individual’s capacity for constructive thinking, reasoning, and problem solving.
Most people think of intelligence in terms of intelligence quotient or IQ, the famous score
on tests we often take as children. Many people view intelligence and IQ as one big attri-
bute of brainpower. However, intelligence, intelligence testing (for IQ), and related research
are more complex.
The concept of intelligence has expanded over the years and is now thought of and
discussed in terms of general mental abilities. People are different in terms of such abilities,
but this isn’t what is important at work. What is important is to understand intelligence or
mental abilities in order to manage people more effectively. Put another way, the reason we
highlight intelligence and mental abilities is they are related to performance at work.8 This
section provides a brief overview of intelligence and mental abilities and highlights practical
implications.
Intelligence Matters . . . and
You Have More Than You Might Think
Historically, intelligence was believed to be purely genetic—passed from one genera-
tion to another—you were either born “smart” or not. Do you agree with this belief?
What are the implications of believing intelligence is a gift of birth? Regardless of
your personal views, research has shown intelligence, like personality, can be altered
or modified in several ways.9 Think about it. No matter who you are or where your
starting point in education or experience is, if you engage in more constructive
thinking, reasoning, and problem solving, you will get better at these skills. You’ll be
more intelligent. If you buy this argument, then after reading this book and studying
OB you’ll be more intelligent due to the practice in critical thinking and problem
solving you’ll gain.
Am I More Intelligent than My Parents? If you answer yes to this question,
research may support your claim. A steady and significant rise in average intelligence
among those in developed countries has been observed over the last 70 years. Why?
Experts at an American Psychological Association conference concluded, “Some combi-
nation of better schooling, improved socioeconomic status, healthier nutrition, and a more
technologically complex society might account for the gains in IQ scores.”10 If you think
you’re smarter than your parents and your teachers, despite them saying you don’t know
important facts they do, you’re probably right!
THE BIGGER PICTURE
You may be smarter than you think. You may already know your IQ, and your grades may
reflect intellectual intelligence. But you can be intelligent in other ways too. We explain vari-
ous forms of intelligence because all are inputs to the Organizing Framework, and all affect
your performance.
Explain how multiple
intelligences affect
your performance.
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83Individual Differences and Emotions CHAPTER 3
Multiple Intelligences (MI) While many people think of intelligence in general terms,
such as IQ, it is more common and more practical to think in terms of multiple intelligences,
or an intelligence for something specific. Howard Gardner, a professor at Harvard’s Gradu-
ate School of Education, investigated the nature of intelligence for years and summarized his
findings in his 1983 book Frames of Mind: The Theory of
Multiple Intelligences.12 The eight intelligences he identi-
fied, listed in Table 3.1, include not only mental abilities
but social and physical abilities and skills as well.
EXAMPLE Named one of the Top 50 Women in
Tech before turning 30, Dr. Anne-Marie Imafidon is
the cofounder and CEO of Stemettes which helps
girls develop and realize their potential in science,
technology, engineering, and math—STEM, Ste-
mettes, get it? Clever. To help inspire and guide
teenaged girls, she and her company have devel-
oped apps and created mentoring programs and
collaborations with large multi-national tech and
media companies, such as Salesforce and BBC.
Imafidon’s intelligence in notable, as she is the
youngest girl ever to pass A-level computing (age
11) and one of the youngest to earn a computer
science masters from Oxford University.15 But this
belies her introversion. In an interview she said,
“My dream in life is to be a hermit. Clubbing,
festivals, and travelling are too much. . . . If I’m
there it’s for other people, not me. I’d rather spend
a quiet night in front of the TV.”16
Many believe the concept of multiple intelligences
has important implications for employee selection,
training, and performance. For example, one-size-fits-all
Mayim Bialik not only plays a neuroscientist on the blockbuster TV show The Big Bang Theory, but she actually has a PhD from UCLA (she
also was accepted to Harvard and Yale). Reports put her IQ between 150 and 163. Matt Damon has a similarly impressive IQ of 160. It
would seem the brainpower of his character in Good Will Hunting didn’t require much “acting.”11 (left): Amanda Edwards/WireImage/Getty Images;
(right): Michel Euler/AP Images
Dr. Anne-Marie Imafidon was names one of the Top 50 Women
in Tech before turning 30. Stuart C. Wilson/Getty Images
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84 PART 1 Individual Behavior
training programs often fall short when diversity of intelligences is taken into consider-
ation. When clinical training for undergraduate nursing students was designed to draw
upon and apply their eight intelligences, for example, they acquired greater proficiency in
clinical skills. This type of training also enabled them to utilize and develop interpersonal
intelligence, extremely important for effective patient care.17
Near the end of this chapter, you will encounter the concept of emotional intelligence,
which managers can apply for employee selection and other purposes. Future break-
throughs in the area of multiple intelligences will attract more OB researchers and practic-
ing managers.
Practical Intelligence We can draw practical benefits from Gardner’s notion of mul-
tiple intelligences. For instance, Cornell University’s Robert J. Sternberg applied Gard-
ner’s “naturalist intelligence” to the domain of leadership under the heading practical
intelligence. He explains: “ Practical intelligence  is the ability to solve everyday prob-
lems by utilizing knowledge gained from experience in order to purposefully adapt
to, shape, and select environments. It involves changing oneself to suit the environment
(adaptation), changing the environment to suit oneself (shaping), or finding a new
TABLE 3.1 Gardner’s Eight Intelligences
TYPE OF INTELLIGENCE EXAMPLE
Linguistic intelligence: potential to learn
and use spoken and written languages.
Madeline Johnson, CEO of marketing and PR firm Market Council,
speaks Spanish, Italian, Portuguese, along with her native English.
She consults for multinational companies, and linguistic intelligence
enables her to develop richer and more productive relationships
quicker.13
Logical-mathematical intelligence: poten-
tial for deductive reasoning, problem
analysis, and mathematical calculation.
Did this intelligence help or hurt you on your college entrance
exam?
Musical intelligence: potential to appre-
ciate, compose, and perform music.
Do you play the drums? Have you heard Marco Minnemann?
He is widely considered a virtuoso drummer, one of the best
on the planet. If you were to measure this form of intelligence,
Minneman’s musical intelligence score would likely be very high.
Bodily-kinesthetic intelligence: potential
to use mind and body to coordinate
physical movement.
Serena Williams, tennis player extraordinaire, says her mind helps
her realize her tremendous physical talent.
Spatial intelligence: potential to
recognize and use patterns.
Fighter pilots are excellent examples of people gifted with spatial
intelligence.
Interpersonal intelligence: potential to
understand, connect with, and effec-
tively work with others.
Compare Warren Buffett (CEO of Berkshire Hathaway) to Larry
Ellison (former CEO of Oracle). Critics see the first as approach-
able and friendly, the second as arrogant.
Intrapersonal intelligence: potential to
understand and regulate yourself.
As the only woman assistant general manager of an NBA team,
Kelly Krauskopf must have enormous self-awareness and control
to endure the constant criticism and conflict in the job and for
being a woman in that job.
Naturalist intelligence: potential to live
in harmony with your environment.
Rose Marcario, the CEO of clothing and outdoor sports retailer
Patagonia, supports the company’s famous ad—“don’t buy this
jacket.” The company has a long tradition of environmental
responsibility in which it encourages customers not to buy more
than they need to limit the strain on Earth’s resources.14
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85Individual Differences and Emotions CHAPTER 3
environment within which to work (selection).
One uses these skills to (a) manage oneself,
(b) manage others, and (c) manage tasks.”18
EXAMPLE Attorney Elizabeth Cabraser has
led some of the largest class-action lawsuits
of our time, such as against big tobacco,
makers of silicone breast implants, BP (for
the Deepwater Horizon oil spill), and Toyota,
GM, Takata, and VW for safety violations.
Cabraser is an introvert and soft-spoken in
court and outside of work. Her acclaim and
success undoubtedly reflect considerable
practical intelligence. Her success in class-
action suits highlights her linguistic as well
as intra- and interpersonal intelligences.
These skills help immensely both in and out of court with clients and other attorneys.
She also appears to have considerable musical intelligence; in college she played
drums and toured with bands. But now she plays and collects drums only in her
spare time.19
Practical Implications
Many educators and parents have embraced the idea of multiple intelligences because it
helps explain how a child could score poorly on a standard IQ test yet be obviously gifted
in other ways such as music, sports, or relationship building. It then follows we need to
help each child develop in his or her own unique way and pace. Many people make the
same arguments about college students and employees, but what is important as a matter
of practice is to identify intelligences relevant to the job, and then to select, place, and
develop individuals accordingly.
The Business of Brain Training The interest in improving intelligence goes far
beyond children and school. A number of companies, including Lumosity, Cogfit, and
Elevate are in the business of brain training, claiming that adult intelligence can be
increased by playing the company’s games. Like other games, players improve their perfor-
mance on these brain games over time, and some have also improved scores on IQ and
other related tests.
Proof Is Lacking Researchers, however, recommend caution. More research refutes
the improvement claims made by such companies than supports them.20 In fact, the Fed-
eral Trade Commission fined Lumosity $2 million for falsely claiming its training could
prevent memory loss, dementia, and Alzheimer’s disease.21 The links between IQ and
performance in school and on the job are also inconclusive. Part of the criticism is because
IQ tests measure things taught in school, like linguistics (language) and analytics (math).
This means if you do well in school, you’re likely to do well on the test and vice versa
(we’re testing what is taught and teaching what is tested).22
What We Know Improving intelligence through training is difficult, and you are well
served to consider carefully before investing your time, money, or energy. But if you’re
going to do it, experts say in order to be effective such training needs three characteristics:
1. Adaptive. In intellectual training, much like physical training, improvement occurs
when you exert yourself just beyond your limits. Easy should be avoided; constant and
increasing challenge is what you need.
2. Variety. Given you have multiple intelligences, you’ll need a variety of activities to
improve. Memory, for instance, involves multiple areas of your brain which is why it is
Class action attorney Elizabeth Cabraser epitomizes the concept of
multiple intelligences. Jeff Chiu/AP Images
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86 PART 1 Individual Behavior
best to include a host of stimuli (e.g., sights and sounds) to improve it. Training only
your mathematical skills will improve just your mathematical skills, not your linguistic
intelligence or more general IQ.
3. Generalizability. Most games and intelligence tests do not involve what you actually do
in your job or everyday life. Therein lies the problem—you improve on a game or a test,
but it has no relevance or impact on your performance at work. This is part of the
reason why in 2014 more than 70 scientists “signed a statement warning consumers
about commercial ‘brain training’ programs.” Because you improve on the games
doesn’t mean you’re smarter or will be a better performer at school or work.23
Regardless of your personal view on the practical value of intelligence at school or
work, the following OB in Action box offers an interesting illustration of how intelligence
testing is used in professional sports.
Intelligence in its various forms is important because
of its link to performance. Research and experience
do not always support this link—the smartest are not
necessarily the best performers in any arena. How-
ever, most believe it influences performance enough
to test and select candidates based on IQ and other
measures of intelligence. Perhaps you should con-
sider it too.
Intelligence Testing in Football Not only does the
National Football League have an intelligence test
for players, but it has been using it since the
1970s! The Dallas Cowboys began the practice
with the popular Wonderlic test (50 questions with
a 12-minute time limit). The test is administered at
the Combine where new recruits are “interviewed”
to assess physical and intellectual capabilities.
Player scores are one factor considered by teams
in the draft.
Only one player has had a perfect score so
far—wide receiver Pat McInally of the Cincinnati
Bengals from 1976 to 1985. Quarterback Ryan
Fitzpatrick seemingly has “smarts” no matter how
you measure it. He scored 48 on the Wonderlic (the
third-best score of all time), completed the test in
the shortest time ever and also scored 1580 out of
1600 on his SAT.24
Smarts aren’t limited to QBs. Sam Acho, a line-
backer in the NFL, speaks three languages and was
awarded the Campbell Trophy for college football’s
top scholar-athlete when he attended the University
of Texas.25 Christian Wilkins, while a defensive line-
man at Clemson also won this award, and he finished
his bachelor’s degree in only two and half years—
and completed a masters too!26
New Test and Other Sports Multiple NFL, NBA,
and MLB teams have recently trialed a new test—the
Athletic Intelligence Quotient (AIQ). This test
assesses how fast a player can acquire, process, and
apply information. The idea or hope is these charac-
teristics are better predictors of performance in
sports, compared to a more general aptitude test
such as the Wonderlic.27 Baker Mayfield was
reported to have the second highest score of the 63
college quarterbacks who have now taken the AIQ.28
YOUR THOUGHTS?
1. If you were a coach of a professional sports
team would you favor intelligence testing? Why
or why not?
2. Assume your employer uses such tests, and you
are a hiring manager, how much weight would
you give intellectual intelligence? Explain.
3. If you owned your own company justify both why
you would and why would not use intelligence
tests in the hiring process.
Smarts and Performance in Sports
OB in Action
Let’s now explore the ever-popular way that distinguishes people at work and in life—
personality.
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87Individual Differences and Emotions CHAPTER 3
 Personality  is the combination of relatively stable physical, behavioral, and mental
characteristics that gives individuals their unique identities. These characteristics or
traits—including the way we look, think, act, and feel—are the product of interacting genetic
and environmental influences and are stable over time and across situations and cultures.29
Personality is a person input in the Organizing Framework.
Karen Sparck Jones was a highly regarded scientist whose work in the 1960s and 70s
laid the foundation for search engines decades later. She was a self-taught programmer
who combined statistics and linguistics to help computers interpret words. Jones was an
advocate for women in science, fond of sailing, and wore a similar “uniform” most days—
jeans, sweater, and a blouse.
There Is More to Personality Than Liking and Fit
Like most people, you may often think of personality in terms of whether you like or dislike
someone. For instance, if you’re asked to describe your professor for this class you might
say: “She’s great. I love her personality.” Or if asked to describe your boss you might say:
“He’s a difficult individual, he’s unethical, many of his colleagues won’t associate with him,
and he is widely disrespected and should be fired.” If you are recruiting someone for a job
(or your fraternity or sorority) you might say: “I really like his/her personality . . . I think
he/she will fit in great with the rest of us.”
What Can I Do with “Like”? While “liking” and “fit” matter (recall our discussion
of fit from Chapter 2), these general and evaluative types of descriptions aren’t very useful
from a management standpoint. If you think of personality only in these terms, then what
type of guidance would you give your recruiters for hiring new employees? “Go find people
you like and be sure they fit” won’t take you very far. And because you like someone
doesn’t mean you should hire that person, he or she will perform well, or he or she will be
a good addition to your organization.
Be Precise to Be Effective To be effective at managing people you need to be
more precise and scientific about personality. This challenge has motivated a tremen-
dous amount of research about personality in psychology and in OB and provides
THE BIGGER PICTURE
You probably feel you know yourself better than anyone else, but you’re about to learn some
tools that will help you see how others perceive you. One such tool is the Big Five personality
profile, which summarizes hundreds of personality traits into five categories. Another useful
approach centers on proactivity. These tools will help you understand the managerial impli-
cations of other people’s views of you. We explore these topics because personality is a fun-
damental driver of your behavior and performance at work, and an important input in the
Organizing Framework for Understanding and Applying OB.
3.3 PERSONALITY, OB, AND MY EFFECTIVENESS
Illustrate ways in
which personality
can affect your
performance at
school and work.
LO 3-3
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88 PART 1 Individual Behavior
specific definitions of what personality is, provides tools to measure it, and data as to
the effect it has on important processes and outcomes across all levels of the Organiz-
ing Framework.
The Big Five Personality Dimensions
Defining something as complex as personality is a challenge. Fortunately, psychologists
and researchers have simplified this work into the Big Five Personality Dimensions: 
extroversion, agreeableness, conscientiousness, emotional stability, and open-
ness to experience.30 Table 3.2 details the five personality dimensions. For example,
someone scoring high on extroversion will be an extrovert—outgoing, talkative, sociable,
and assertive. Someone scoring low on emotional stability will likely be nervous, tense,
angry, and worried.
A person’s scores on the Big Five reveal a personality profile as unique as their finger-
prints. To discover your own Big Five profile, complete Self-Assessment 3.1 and you’ll
learn there is more to personality than being likable or fitting in. This Self-Assessment will
increase your self-awareness and illustrate some of the concepts described. Many compa-
nies use personality profiles for hiring and promotions, so your profile should provide
practical insights.
TABLE 3.2 Characteristics of Persons Scoring High on the Five Dimensions
THE BIG FIVE PERSONALITY
DIMENSIONS PERSONALITY CHARACTERISTIC
1. Extroversion Outgoing, talkative, sociable, assertive
2. Agreeableness Trusting, good-natured, cooperative, softhearted
3. Conscientiousness Dependable, responsible, achievement-oriented,
persistent
4. Emotional stability Relaxed, secure, unworried
5. Openness to experience Intellectual, imaginative, curious, broad-minded
SOURCE: Barrick, Murray R., and Michael K. Mount. “Autonomy as a Moderator of the Relationships between the Big Five
Personality Dimensions and Job Performance.” Journal of Applied Psychology 78, no. 1 (February 1993): 111–18.
http://dx.doi.org/10.1037/0021-9010.78.1.111.
What Is My Big Five Personality Profile?
Please be prepared to answer these questions if your instructor has assigned Self-
Assessment 3.1 in Connect.
1. What are your reactions? Do you agree with the scores on your Big Five profile?
2. Which dimension(s) is (are) your highest? In which situations would they be most
beneficial?
3. Which one or two dimensions do you think are likely the best predictors of man-
agerial success? Which is the least? Explain.
4. What are the implications of your Big Five profile for working in teams at school
or work?
SELF-ASSESSMENT 3.1 CAREER READINESS
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89Individual Differences and Emotions CHAPTER 3
One important question lingers: Are personality models unique to the culture in which
they were developed? Cross-cultural research on the Big Five suggests the answer is no.
Specifically, the Big Five personality structure held up very well in a study of women and
men from Russia, Canada, Hong Kong, Poland, Germany, and Finland.31 As a comprehen-
sive analysis of Big Five studies revealed, “To date, there is no compelling evidence that
culture affects personality structure.”32
Hail the Introverts
Personality is not monolithic. Every person is a combination of the various dimensions—
no one is 100 percent of one and zero of the others. This means, for instance, you and
everyone else has some amount of introversion. Unfortunately, however, introverts get a
bad rap in terms of performance and often are stereotyped and seen as less effective than
extroverts or those who are conscientious. (You’ll learn much more about stereotyping and
perceptions more generally in Chapter 4.)
If this is your own view, you have more to learn. Founders of some of the most
iconic tech companies of all time—Bill Gates, Larry Page, and Mark Zuckerberg—are
perceived as introverts, and yet their accomplishments are legendary. Regardless of your
own level of introversion, the nearby Applying OB box provides guidance on how to
thrive as an introvert.
You could be on the Supreme Court! Ruth Bader Ginsburg is a self-described introvert,
and given what we know about her work and what those who know her personally have
shared, it is safe to assume she is highly conscientious,
intelligent, and open to experience. These seemingly
would be very beneficial traits in a Supreme Court
justice. Her impact on gender equality and the legal
history of America cannot be overstated, as are her
many accomplishments. She was one of the first nine
women admitted to Harvard Law School, made the
Law Review in her first year, but despite these accom-
plishments had difficulties getting a job.33 She
obviously overcame these challenges and eventually
made it to the highest court in the land, and since
then has overcome multiple bouts of cancer.34 It cer-
tainly seems like introversion didn’t get in her way.
Proactive Personality
A  proactive personality  is an attribute of someone “relatively unconstrained by
situational forces and who effects environmental change. Proactive people identify
opportunities and act on them, show initiative, take action, and persevere until
meaningful change occurs.”35 In short, people with proactive personalities are
hard-wired to change the status quo. It is no surprise this particular individual difference
has received growing attention from both researchers and managers. Think about it.
Companies, and their managers, routinely say they want employees who take initiative and
are adaptable, as today’s hypercompetitive and fast-changing workplace requires such
characteristics.
Research shows those with proactive personalities positively influence many of the
work outcomes shown in Figure 3.2 (and later in Figure 3.5). For example, proactivity is
related to increased performance, satisfaction, affective organizational commitment (genu-
ine desire to remain a member of an organization), and social networking.36 Particularly
interesting is the finding that those with proactive personalities tend to increase the sup-
portiveness of their supervisors (a true benefit), and they also modify their work situations
so they have more control. You likely are not thinking of retirement yet, but if you have a
proactive personality then you will be more likely to be satisfied in your retirement, regard-
less of whether you were satisfied with your career or not.37
The iconic Supreme Court member’s life has been chronicled
on TV and in movies, providing vivid insight into her
personality. TCD/Prod.DB/Alamy Stock Photo
Organizational Behavior: A Practical,
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90 PART 1 Individual Behavior
Proactive Managers What about your manager? An interesting study showed the
ideal scenario is for both you and your manager to be proactive. This results in a better fit
and better relationship between the two of you, and it also increases your level of job per-
formance, job satisfaction, and affective commitment.39 The same study also showed that
the worst scenario in terms of performance was low proactivity for both you and your
manager, followed by a highly proactive manager and a low proactivity follower. Employers
are well-served to value and seek out employees and managers with high levels of proactive
personality.
Given these insights, how proactive do you believe you are? How might you increase
your proactivity? To help answer these questions, learn about your own proactivity, and
explore the potential benefits for you by completing Self-Assessment 3.2.
Applying OB
language, and interactions are maxed out, realize
that if you were an extrovert, you’d probably be
playing at only 7 instead of 10. Your perception of
intense and loud is lower than what others will
perceive. (Soliciting feedback, which is discussed
in Chapter 6, is a good way of calibrating your
intensity.)
3. Play to your strengths. Because engaging others
is typically quite draining for introverts, it is a good
idea to talk about and stick to topics you know and
care about. This will enable you to naturally feel
more energized and comfortable.
4. Get team practice. Join a team. Whether you join
a recreational sports team or a club of some sort,
being a member will help you practice and become
comfortable with interacting with others. If it is a
non-work team, the pressure and stress of work
won’t be part of the experience, making it easier to
engage. This will help build your skills for when
they really count—at work!38
Having an introverted personality is an individual dif-
ference that you, Larry Page, J. K. Rowling, Rosa Parks,
Bill Gates, Mark Zuckerberg, and many other success-
ful people share. Regardless of your own level of suc-
cess, you can benefit from the advice of Russ Fujioka,
entrepreneur and former president of the Americas
for cloud accounting company Xero. Fujioka is a self-
proclaimed and successful introvert.
1. Be self-aware. Be aware that introverts can be
perceived as disinterested or aloof when they
seem less engaged in conversations and social
interactions. They may or may not be disinter-
ested, of course, but are more likely to show it if
they are. And in business situations, they must
make the effort necessary to appear interested
and force themselves to be engaged.
2. Calibrate your intensity. When engaging others,
especially groups of people or teams at work, try
to push your personal intensity level to 10 on a
10-point scale. If you feel your volume, body
How to Thrive as an Introvert
How Proactive Am I?
Please be prepared to answer these questions if your instructor has assigned Self-
Assessment 3.2 in Connect.
1. Do you see a pattern among the questions on which you scored the highest?
The lowest?
2. What are the implications of your highest-scoring answers for your success in
school? In other words, how can these aspects of your proactivity help you?
3. How can knowledge of your proactive personality score help you when you
look for a job? Be specific.
SELF-ASSESSMENT 3.2 CAREER READINESS
Organizational Behavior: A Practical,
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91Individual Differences and Emotions CHAPTER 3
Proactivity and Entrepreneurs Besides leading to increases in job performance, job
satisfaction, and affective commitment (as discussed in Chapter 2), proactive personality
is also linked to intentions to be entrepreneurial. This really should not be surprising, but
it is helpful to know that scientific OB research substantiates this belief. Building on this,
we can say employees with proactive personalities are more likely to be engaged (again, see
Chapter 2) and creative at work.40
Successful entrepreneurs often exemplify proactive personality. Consider Dan Goldie,
former professional tennis player and successful financial adviser. Goldie’s youthful passion
was tennis and his talent led him to junior championship titles, a scholarship at Stanford,
and a ranking of 27th on the pro tour. Now he considers himself more successful at manag-
ing money than he ever was at tennis. Impressive to be sure.
Perhaps the more interesting aspect of Goldie’s story is that proactivity has been a hall-
mark of his entire journey. He knew he wanted to attend college and the only way to pay for it
was with a scholarship. He trained, competed, and earned it. He dreamed of playing profession-
ally, so he looked at colleges with top tennis programs (like Stanford). He valued money and
turned professional as soon as possible. Realizing he
would not be a top player and tennis would not last for-
ever, he completed an MBA while on tour. He utilized
his standing to associate with and learn about finance
from top professionals in that industry. Later he lever-
aged his tennis relationships to land some of his first and
most significant clients as a money manager.41
Another entrepreneurial example is Sal Khan’s
Khan Academy. Now world famous, this organization
provides Internet-based learning for nearly every scho-
lastic subject under the sun. Here’s how it started.
Khan, who has three graduate degrees, offered to help
his cousin with one of her classes via the Internet. She
learned, the word spread, and a company was born.
Khan Academy now has 18 million monthly users,
more than 150 employees, and its courses are trans-
lated into 36 languages.42
Fascinating statistics, shown in Table 3.3, highlight other notable individual differences
of entrepreneurs. How do you match up?
TABLE 3.3 Taking the Measure of Entrepreneurs
40 Average and median age
95.1% Have bachelor’s degrees
47% Have advanced degrees
71.5% Come from middle-class backgrounds
< 1% Come from extremely rich or extremely poor backgrounds 70% Used own savings as major source of funding 42.5% Were firstborn 3.1 Average number of siblings 51.9% First in family to start a business 69.9% Married when they launched first business 59.7% Had at least one child 73% Think luck is an important factor in the success of their venture SOURCE: The Wall Street Journal. “By the Numbers: Taking the Measure of Entrepreneurs.” November 12, 2012. Sal Khan’s influence in online learning is epic. It is likely that a number of his individual differences (e.g., intelligence and proactivity) contribute to his entrepreneurial success. Larry Busacca/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 92 PART 1 Individual Behavior Table 3.3 contains only averages. Even if you don’t possess these qualities, you can still succeed as an entrepreneur. To help make this point, let’s explore the link between person- ality and performance. The Dark Side of Personality Most of the individual differences covered in this book are positive or desirable, and Chapter 7 is devoted entirely to Positive Organizational Behavior. However, there are three individual differences that are universally considered undesirable, as they nega- tively affect outcomes across individual, group, and organizational levels: narcis- sism, psychopathy, and Machiavellianism. These are referred to as the Dark Triad ,43 but before saying any more, it is important to note at least the first two are considered clinically as personality disorders, which is not our interest here, but instead it is the prevalence and consequences at work that is our concern. That said, you may have already encountered people with one or more of these traits, and when this happens in the form of a manager, colleague, partner, advisor, or mentor the effects can be devastating. Let’s explore in a bit of detail and learn how to identify if not also avoid them.  Narcissists  are characterized as (1) having a grandiose sense of self-importance; (2) requiring or even demanding excessive admiration; (3) having a sense of entitle- ment; (4) lacking empathy; and (5) tending to be exploitative, manipulative, and arrogant.44 Although most OB research investigates this trait in leaders (Chapter 14), narcissists inhabit every arena of our lives and at all levels and positions at work. Part of the problem with narcissists is they can be charismatic or even charming to many, reach high levels of status in organizations, especially in the short term, but once something is at stake for them, they can turn and throw you to the curb. How do you identify a narcissist? For one, pay attention to your emotions—how do they make you feel? These people can prop you up with praise to win you over (manipula- tion), but then they make you feel stupid or inadequate. Narcissists are good at making you feel that all problems or bad outcomes are your fault, and their contributions are the most significant or valuable. Second, pay attention to what they do more than what they say. They can say good things about you then throw you under the bus. Remember, they are skilled at making themselves look good and viewed in a favorable light, so they may not show their true colors in a group setting. Third, someone else is always the target of blame. You will rarely hear a narcissist say, “I was wrong, it was my fault,” especially if the out- comes are consequential and may make them look bad.45  Psychopaths  can be aggressive and lack concern for others, guilt, or remorse when their own actions do others harm. The key here is when they harm others. Research shows psychopaths are likely to engage in and cause counterproduc- tive work behaviors (CWBs from Chapter 2) and damage morale of those with whom they work.46 One way to identify such people, for example, a prospective boss or busi- ness partner, is to learn about their relationships over time. Does he or she have any or many true long-term friends? What about people they’ve managed or led in some meaningful way over time, are these relationships still intact, do these people speak fondly of this person? Like narcissism, you need to beware, as this trait can be difficult to detect. Psychopaths may use words that suggest empathy and concern, but they are a false front.  Machiavellians  believe the ends justify the means, often maintain emotional distance, and are manipulative. These individuals may climb the corporate ladder quite quickly, but they rarely make or keep friends along the way. Like the other traits, they show little regard for you or others beyond your benefit or value to achieving their goals. They also are prone to more CWBs and rarely succeed over time. Employees with one or more of these characteristics tend to leave destroyed relation- ships in their wake over time. You are best served to identify and avoid any one of the three, especially if they are in positions of power and may exert influence over your job, career, and well-being. Organizational Behavior: A Practical, Problem-Solving Approach 93Individual Differences and Emotions CHAPTER 3 Personality and Performance Instead of simply assuming personality affects performance, let’s see what research has to say and how this knowledge can make you more effective. First, and most generally, your personality characteristics are likely to have the greatest influence and effect on perfor- mance when you are working in situations that are unstructured and with few rules.47 This makes sense. You’re more likely to show your true colors (your personality) when the situation is open and lacks constraints. As for the Big Five, knowledge of these stable personality dimensions can assist in selecting the right people and assigning responsibilities to them that will set them up to win. • Conscientiousness has the strongest and most positive effects on performance across jobs, industries, and levels. Individuals who exhibit traits associated with a strong sense of purpose, obligation, and persistence generally perform better than those who do not. They also tend to have higher job satisfaction.48 This trait has consistently been shown to be the most influential when it comes to performance at work.49 • Extroversion, not surprisingly, is beneficial if the job involves interpersonal interac- tion. It is also a stronger predictor of job performance than agreeableness, across all professions. • Agreeable employees are likely to fit and excel in jobs requiring interpersonal inter- action, such as customer service. These same employees are more likely to stay with their jobs, be kind and get along with others, and thus have positive relationships and experiences at work.50 • Openness is linked with higher levels of creativity compared with other traits, but open employees may be more likely to quit. Such people are curious and may seek and find new opportunities, even when they are satisfied with their current jobs.51 This characteristic seems like a double-edged sword for employers. On the one hand they want open and flexible employees, but these are also the same employees who are likely to quit. How might you deal with this as a manager or the owner of a business? • Emotional stability is associated with higher job satisfaction and well-being. Those low in emotional stability (high on neuroticism) have opposite experiences, includ- ing higher levels of burnout. It is difficult to find a downside to emotional stability in the workplace. If you are a hiring manager, perhaps you’d consider including this trait in your recruiting and selecting efforts. Finally, if employee engagement is the desired outcome, then proactive personality was found to be the strongest predictor, followed by conscientiousness and extraversion. Agree- ableness and openness were the weakest.52 Personality Testing at Work Personality testing is a commonly used tool for making decisions about hiring, training, and promotion. Roughly 90 percent of Fortune 500 companies use some form of pre-employment testing, including personality tests.53 A few of the major reasons organiza- tions use such tests are: 1. Reduce time and cost of recruiting and hiring. 2. Reduce biases in the interview process. 3. Increase the pool of candidates (because such tests can be administered electronically and remotely). 4. Complement candidate information found in resumes and interviews.54 Personality tests, in particular, are more widely used at the management level than at the entry level. However, despite this widespread use, many experts argue that the typical Organizational Behavior: A Practical, Problem-Solving Approach 94 PART 1 Individual Behavior personality test is not a valid predictor of job performance.55 One reason might be that many test takers don’t describe themselves accurately but instead try to guess what answers the employer is looking for.56 With this in mind, consider the recommendations of the fol- lowing Applying OB box the next time you take such a test. Another reason for inaccurate results is that personality tests are typically bought off the shelf and often given indiscriminately by people who aren’t trained or qualified. And while rigorous research shows personality is related to performance, the effects are small. Moreover, and perhaps more importantly, personality tests are designed to measure per- sonality, not to identify the individual differences needed to perform at a high level in a particular job. This means managers need different and better ways to measure personality if they want to select employees based on performance-conducive personality traits. An excellent example is the very popular Myers-Briggs Type Indicator (MBTI). Although helpful for self-awareness purposes, or discussing preferences related to commu- nicating and making decisions with colleagues, rigorous science largely shows it is a poor predictor of job performance. To be fair, the test is not designed or intended to be a predic- tor of performance, but rather offer insights for you and colleagues. Keith McNulty, People Science Leader at McKinsey, says: “There is no place for the MBTI in organizations. The issue is using it and other measures in ways in which they were not intended and for which science doesn’t support.”57 To help overcome these shortcomings, researchers have used technology and advances in brain science to create a new breed of tests. Companies such as Pymetrics and Knack use games to help assess cognitive abilities, thought processes, and other characteristics. Applying OB drink. Don’t overdo the caffeine, unless that is what you’ve done for every test you’ve ever taken. 3. Be yourself . . . sort of. Don’t lie. Well-designed tests can often detect inaccuracies, and most skilled interviewers unveil inconsistencies with ease. But also, beware of being too extreme. Ambition is generally good, but extreme ambition can be dysfunctional. A strong work ethic is pre- ferred, but too high a level is a red flag. In a word— moderation. Don’t be too much of even good things. And when interviewing, take the lead from what others have said about you. If someone has recommended or endorsed you, learn what they said and emphasize those same attributes. Sell yourself the way your endorsers are selling you. You want the interviewer’s data points to align. SOURCE: D. Meinert, “Heads Up: Personality Assessments Are Being Used More Often in the Hiring Process. But What Do They Really Tell You?” HR Magazine, June 2015, 88–98. Employment tests can be far more consequential than those you take in school, since getting hired or promoted may depend on It. This may tempt you to provide answers you think the employer wants, but faking is ill- advised. Many tests are intended to assess fit, and if you don’t answer honestly, you might get a job but perhaps it will be one you hate! Instead consider the following tips: 1. Practice. Yes, like other tests (GMAT, SAT, MCAT, LSAT) you can practice for employment tests, and practicing can help increase scores by 20 percent. Practicing works because you become more com- fortable taking such tests, you develop effective test-taking strategies, and you learn what you’re being tested on. This is why so many students take GRE practice exams, as doing so helps sharpen reasoning, numerical, and verbal skills. 2. Play to your own rhythms. If you are sharpest in the afternoon try to avoid taking employment tests in the morning. Also, beware of what you eat and Acing Employment Tests CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 95Individual Differences and Emotions CHAPTER 3 TABLE 3.4 Advice and Words of Caution about Personality Testing in the Workplace Researchers, test developers, and organizations that administer personality assessments offer the following suggestions for getting started with testing or for evaluating whether tests already in use are appropriate for forecasting job performance: • Determine what you hope to accomplish. If you are looking to find the best fit between job and applicant, analyze the aspects of the position that are most critical for it. • Look for outside help to determine if a test exists or can be developed to screen applicants for the traits that best fit the position. Industrial psychologists, professional organizations, and several Internet sites provide resources. • Insist any test recommended by a consultant or vendor be validated scientifically for the specific purpose you have defined. Vendors should be able to cite independent, credible research supporting a test’s correlation with job performance. • Ask the test provider to document the legal basis for any assessment: Is it fair? Is it job-related? Is it biased against any racial or ethnic group? Does it violate an appli- cant’s right to privacy under state or federal laws? Get legal advice to assure that a test does not adversely affect any protected class. • Make sure every staff member administering tests or analyzing results is educated about how to do so properly and will keep results confidential. Use the scores on personality tests with other factors you believe are important to the job—such as skills and experience—to create a comprehensive evaluation of the merits of each candidate and apply those criteria identically to each applicant. SOURCE: Bates, Steve. “Personality Counts.” SHRM, February 1, 2002. https://www.shrm.org/hr-today/news/hr-magazine/ pages/0202covstory.aspx. The intended advantage is that prospective employees will be assessed on how they play or what they actually do, rather than on their answers to multiple-choice questions or a self- report instrument. Wise managers learn about personality and the tools used to measure it before invest- ing in and/or utilizing the data they yield. Table 3.4 provides some insights. There Is No “Ideal Employee” Personality Given the complexity of today’s work environments, the diversity of today’s workforce, and recent research evidence, the quest for an ideal employee personality profile is sheer folly. Just as one shoe does not fit all people, one personality profile does not fit all job situa- tions. Good managers take the time to get to know each employee’s unique combination of personality traits, abilities, and potential and to create a productive and satisfying person– job fit. In other words, a contingency approach to managing people is best (recall the discussion of contingency in Chapter 1). Organizational Behavior: A Practical, Problem-Solving Approach 96 PART 1 Individual Behavior When studying individuals, we either consider narrow or broad concepts. Narrow con- cepts tend to be better for describing individuals because they are more precise, for instance, when identifying musical intelligence, whereas broad concepts (the Big 5) are better for predicting behavior and outcomes included in Figure 3.2 and the Organizing Framework. The rationale is that broad concepts are more likely to include the complexity in both individuals and situations than those that are narrow. With this in mind we, explore core self-evaluations (CSEs), which is an especially broad personality trait.  Core self-evaluations (CSEs)  represent four narrow and positive individual traits: (1) generalized self-efficacy, (2) self-esteem, (3) locus of control, and (4) emotional stability. (See Figure 3.3.) People with high core self-evaluations see them- selves as capable, competent, and valuable. This section discusses the component traits and highlights research and managerial implications for each. Why should you care about CSEs? CSEs have desirable effects on many outcomes in the Organizing Framework, such as increased job performance, job and life satisfac- tion, motivation, organizational citizenship behaviors, and better adjustment to interna- tional assignments. CEOs with high core self-evaluations positively influence their organization’s drive to take risks, innovate, and seek new opportunities, especially strong in dynamic business environments.58 Better still, CSEs can be developed and improved.59 Now let’s learn about the component dimensions. 3.4 CORE SELF-EVALUATIONS: HOW MY EFFICACY, ESTEEM, LOCUS, AND STABILITY AFFECT MY PERFORMANCE THE BIGGER PICTURE You can significantly improve your self-awareness by understanding your core self- evaluations (CSEs). These self-evaluations provide broad and useful ways to describe personality in terms of four important individual differences: self-efficacy, self-esteem, locus of control, and emo- tional stability. CSEs and their component dimensions are more flexible than IQ but more stable than emotions. Your knowledge of CSEs can improve your performance at work, in your career, and in your life. Describe the impact of core self-evaluations on performance. LO 3-4 FIGURE 3.3 The Core Self-Evaluation and Its Components 1. Generalized Self-E�cacy 2. Self-Esteem Core Self-Evaluation 3. Locus of Control 4. Emotional Stability Organizational Behavior: A Practical, Problem-Solving Approach 97Individual Differences and Emotions CHAPTER 3 Self-Efficacy—“I Can Do That” Have you noticed that those who are confident about their ability tend to succeed, while those who are preoccupied with failing tend to fail? At the heart of such performance differences is self-efficacy.  Self-efficacy  is a person’s belief about his or her chances of successfully accomplishing a specific task. Self-Efficacy Can Be Developed Helpful nudges in the right direction from par- ents, role models, and mentors are central to the development of high self-efficacy. For example, a study of medical residents showed guidance and social support from their mentors improved the residents’ clinical self-efficacy.60 Mechanisms of Self-Efficacy A detailed model of self-efficacy is shown in Figure 3.4. To apply this model, imagine you have been told to prepare and deliver a 10-minute talk to an OB class of 50 students on how to build self-efficacy. How confident are you that you can complete this task? Part of your self-efficacy calculation is to evaluate the interplay between person and situation factors described in the Organizing Framework. SOURCE: Bandura, Albert. “Perceived Self-Efficacy in Cognitive Development and Functioning.” Developmental Psychology 25, no. 5 (1993): 117–148. http://dx.doi.org/10.1037/0012-1649.25.5.729; and Wood, Robert, and Albert Bandura. “Social Cognitive Theory of Organizational Management.” The Academy of Management Review 14, no. 3 (July 1989): 361–384. https://DOI: 10.5465/AMR.1989.4279067. FIGURE 3.4 Self-Efficacy Paves the Way for Success or Failure Prior Experience Sources of self-e�cacy beliefs Feedback Behavioral patterns Results Behavior Models Persuasion from Others Assessment of Physical/ Emotional State High “I know I can do this job.” Success Self-E�cacy Beliefs Low “I don’t think I can get the job done.” Failure • Be active—select best opportunities. • Manage the situation— avoid or neutralize obstacles. • Set goals—establish standards. • Plan, prepare, practice. • Try hard; persevere. • Creatively solve problems. • Learn from setbacks. • Visualize success. • Limit stress. • Be passive. • Avoid di cult tasks. • Develop weak aspirations and low commitment. • Focus on personal deficiencies. • Don’t even try—make a weak e…ort. • Quit or become discouraged because of setbacks. • Blame setbacks on lack of ability or bad luck. • Worry, experience stress, become depressed. • Think of excuses for failing. Organizational Behavior: A Practical, Problem-Solving Approach 98 PART 1 Individual Behavior On the left-hand side of Figure 3.4, among the sources of self-efficacy beliefs, prior experience takes first position as the most potent of the four sources. This is why it con- nects to self-efficacy beliefs with a solid line. Past success in public speaking would boost your self-efficacy, and poor experiences would diminish it. Other sources of your beliefs about yourself—behavior models, persuasion from others, and physical and emotional factors—might also affect your self-confidence. As weaker sources, they connect to beliefs with dashed lines in the figure. Your evaluation of the situation yields your self-efficacy level—ranging from high to low expectations for success. High expectations are not mere bravado; but instead are deep convictions supported by experience. Your self-efficacy beliefs affect your behavioral pat- terns (right-hand portion of Figure 3.4). If you have high self-efficacy about giving a 10-minute speech, you will work harder, longer, and more creatively when preparing for your talk than would a low-self-efficacy classmate. Better performance will follow. People program themselves for success or failure by enacting their self-efficacy beliefs. Positive or negative results subsequently act as feedback and become the basis of personal experience and future levels of self-efficacy. The OB in Action box provides an excellent illustration. Eren Ozmen is #19 on Forbes’ list of richest self- made women in America and epitomizes self- efficacy. She and her husband’s company (she is the majority owner), Sierra Nevada (not the beer), are competing to create and operate reusable spacecraft. Their first craft, the Dream Chaser, crashed upon landing and the company lost the NASA contract to SpaceX. However, that setback did not stop her. The com- pany is now part of a $14 billion effort to shuttle cargo between Earth and the International Space Station. The company is the biggest female-owned government contractor in the country. Her Own Journey Began Far Away She came to the U.S. from Turkey for graduate school in the 1980s and later bought Sierra Nevada, her employer at the time. They have now turned their original investment of $5 million into a company with $1.6 billion in sales and 4,000 employees in 33 loca- tions. The story is one of an underdog and tremen- dous personal risk for Ozmen, as the company has never been in space exploration. But it nevertheless acquired other companies and developed its way into the industry. It Was Not a Clear or Straight Path This parallels her own journey. A journalism and public relations major, she knew nothing about technology, and moved through numerous jobs in America after graduating. She and her husband worked at Sierra You Can Go to the Moon and Beyond, If You Believe in Yourself OB in Action (left): NASA/Ken Ulbrich.; (right): Helen H. Richardson/MediaNews Group/The Denver Post/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 99Individual Differences and Emotions CHAPTER 3 Managerial Implications Self-efficacy has been extensively studied in the workplace. The data supports several recommendations. As a rule, managers are encouraged to nur- ture self-efficacy in themselves and others because it is related to improved job perfor- mance and job satisfaction (both are important individual-level outcomes). Table 3.5 provides a few specific means for building self-efficacy. Nearly all are explained in detail in other chapters of this book. Self-Esteem—“Look in the Mirror”  Self-esteem  is your general belief about your self-worth. Personal achievements and praise bolster self-esteem, while prolonged unemployment and destructive feedback erode it. Researchers measure self-esteem by having people indicate their agreement with posi- tive and negative statements about themselves. An example of a positive statement is, TABLE 3.5 Ways to Apply Knowledge of Self-Efficacy at Work APPLICATION EXPLANATION 1. Job Design Complex, challenging, and autonomous jobs tend to enhance perceived high self-efficacy. Boring, tedious jobs generally do the opposite. 2. Training and Development Managers can improve employees’ self-efficacy expecta- tions for key tasks through guided experiences, mentoring, and role modeling. 3. Self-Management Training linked to goal setting, action planning, and self- motivation enhance self-efficacy expectations. 4. Goal Setting and Quality Improvement Goal difficulty needs to match the individual’s perceived self-efficacy.62 As self-efficacy and performance improve, goals and quality standards can be made more challenging. 5. Creativity Supportive managerial actions—encouraging risk taking and providing “blue sky time”—can augment the strong link between self-efficacy beliefs and workplace creativity.63 6. Coaching Those with low self-efficacy and employees hampered by learned helplessness need lots of constructive pointers and positive feedback.64 7. Leadership Leadership talent surfaces when top management gives high self-efficacy managers a chance to prove themselves under pressure. Nevada for several years, which nearly went bank- rupt, before taking it over and transforming it into what it is today—a major competitor in the race to space.61 YOUR THOUGHTS? 1. How do you think Ms. Ozmen’s self-efficacy influenced her decisions along the way? 2. Although by most any measure she seems to be successful now, how do you think her challenges along the way shaped her self-efficacy? 3. What can you learn from her story and apply to building your own self-efficacy? Organizational Behavior: A Practical, Problem-Solving Approach 100 PART 1 Individual Behavior “I feel I am a person of worth, the equal of other people.” An example of a negative state- ment is, “I feel I do not have much to be proud of.” Those who agree with the positive statements and disagree with the negative statements have high self-esteem. They see them- selves as worthwhile, capable, and accepted. People with low self-esteem view themselves in negative terms. They do not feel good about themselves and are hampered by self- doubts.65 Although research suggests self-esteem is relatively consistent within cultures, over time, and among men and women, we can still ask: Can it be improved? Can Self-Esteem Be Improved? The short answer is yes. If your self-esteem is lower than you’d like now, don’t despair. It has been shown, for example, that support- ive clinical mentors improved medical residents’ self-esteem.66 But not everyone is convinced. Researchers have found one method especially effective for improving self-esteem. Low self-esteem can be raised more by having the person think of desirable characteristics possessed rather than of undesirable characteristics from which he or she is free.67 Some researchers believe performing at a high level boosts your self-esteem, not the other way around. Thus, they reason it’s a mistake to focus on self-esteem. We all know people who “talk big” but “deliver small” and thus seem to suffer from delusions of competency. Our Recommendation: Apply yourself to things important to you. If getting an A in your OB course affects your sense of self-worth, then you will be motivated to work harder and presumably perform better. Locus of Control: Who’s Responsible— Me or External Factors?  Locus of control  is a relatively stable personality characteristic that describes how much personal responsibility we take for our behavior and its consequences. We tend to attribute the causes of our behavior primarily to either ourselves or environmental Many individual differences influence performance. Of those discussed so far in this chapter, which do you think are most important for surgeons? Would you rather have a surgeon with high self-efficacy or high self-esteem? Michael N. Paras/Pixtal/age fotostock Organizational Behavior: A Practical, Problem-Solving Approach 101Individual Differences and Emotions CHAPTER 3 factors. (Recall our discussion of the person—situation distinction in Chapter 1.) Locus of control thus has two forms—internal and external. Internal Locus of Control People who believe they control the events and con- sequences that affect their lives are said to possess an  internal locus of control.  Such people, called internals, tend to attribute positive outcomes to their own abilities and negative outcomes to their personal shortcomings. Many entrepreneurs eventually succeed because their internal locus of control helps them overcome setbacks and disappoint- ments. They see themselves as masters of their own fate and not as simply “lucky.” Those who willingly take high-stakes jobs in the face of adversity (such as pulling a company back from scandal or bankruptcy) likely have a high internal locus of control. Dara Khosrowshahi, for instance, took over at Uber after a slew of scandals and bad press damaged the company’s reputation and resulted in the ouster of then CEO, Travis Kalanick.68 External Locus of Control In contrast, those who believe their performance is the product of circumstances beyond their immediate control possess an  external locus of control  and tend to attribute outcomes to environmental causes, such as luck or fate. An “external” would attribute a passing grade on an exam to something external like an easy test and attribute a failing grade to an unfair test or distractions at work. Locus in the Workplace The outcomes of internals and externals differ widely at work. Internals • Display greater work motivation. • Have stronger expectations that effort leads to performance. • Exhibit higher performance on tasks that require learning or problem solving, when performance leads to valued rewards. • Derive more job satisfaction from performance. Externals • Demonstrate less motivation for performance when offered valued rewards. • Earn lower salaries and smaller salary increases. • Tend to be more anxious.69 Don’t mistakenly assume, however, that internal locus is always good and external is always bad. High internals can implode, burn out, or otherwise underperform in situations offering them little or no control, such as during organizational changes in which they have no input or influence. An external locus would be more helpful here. Encouragingly, research shows managers can increase the degree of one’s internal locus of control over time by providing more job autonomy (something you’ll learn about in Chapter 5).70 Emotional Stability As described in our discussion of the Big Five and in Table 3.2, individuals with high levels of  emotional stability  tend to be relaxed, secure, unworried, and less likely to experience negative emotions under pressure. In contrast, if you have low levels of emotional stability, you are prone to anxiety and tend to view the world negatively. How is this knowledge useful at work? Employees with high levels of emotional stability have been found to have higher job performance and to perform more organizational citizenship behaviors. Emotionally stable employees also exhibit fewer counterproductive work behaviors (CWBs), actions that undermine their own or others’ work. Both OCBs and CWBs were discussed in Chapter 2 and are individual-level outcomes illustrated in Figure 3.2 and the Organizing Framework. Organizational Behavior: A Practical, Problem-Solving Approach 102 PART 1 Individual Behavior Three Practical Considerations for Core Self-Evaluations Before leaving core self-evaluations let’s briefly touch on three areas of interest: • Is having more of a CSE component always better? • Is the whole of the CSE components greater than its parts? • How can managers use CSEs? Is More Always Better? Like having more self-esteem, having greater emotional sta- bility is not always better. Researchers found curvilinear, or inverted-U, relationships between emotional stability and outcomes. This suggests that as your emotional stability increases, so too will your job performance and organizational citizenship behaviors, but only to a point. It seems as emotional stability continues to increase, OCBs decline, likely because you focus your attention on the task at hand and not on your coworkers. Typically, that’s a good thing, but at a certain level emotional stability becomes problematic if you begin obsessing over details and lose sight of the larger objectives and those with whom you work. Emotional stability can also protect against stressors at work, such as trouble with supervisors, unfair policies, and too much work. It also reduces the likelihood employ- ees will act out by committing CWBs. But there may come a tipping point when the stress becomes too much and emotional stability cannot prevent counterproductive behaviors.71 What is the lesson for you? Emotional stability is an asset for many types of jobs, but it will take you only so far. The USA women’s national soccer team has won four Women’s World Cup titles, most recently in 2019. And although Megan Rapinoe was awarded the FIFA Best Player Award, neither she nor any of her team- mates could have won a single game alone. Can you think of non-sports examples where the whole is greater than the sum of the parts? Organizational Behavior: A Practical, Problem-Solving Approach 103Individual Differences and Emotions CHAPTER 3 Is the Whole of CSE Greater than Its Parts? To clarify the value of CSE as a whole, versus that of its component traits, think of basketball as a metaphor. Clearly a team outperforms any individual playing alone. Even the greatest player would have no chance against an entire team. And the five greatest players ever, playing individually, still have no chance against an entire team. The sum of their solo efforts would be zero. However, if you assembled a team of the five greatest players, then those individuals playing as a team would be able to do things and perform in ways they couldn’t otherwise do on their own (more on teams in Chapter 8). CSE and its component traits are much the same. Core self-evaluation is the team and the traits are the individual players—the whole is greater than the sum of the parts. How Can I Use CSEs? Especially in a managerial role, you can use your knowledge of CSEs in many practical ways, such as: • Employee selection. It is more efficient to select employees using CSEs as one broad personality characteristic rather than using its four component traits. Employers can determine the link between one characteristic (CSE) and performance in a particular job, rather than having to determine the relationships between each of the four components’ parts and performance. This is one relationship versus four. Doing so enables managers and employers to take advantage of the various benefi- cial outcomes described above. • Training. The training potential of CSEs is limited because most of its components are trait-like or relatively fixed (self-esteem, locus of control, and emotional stabil- ity). That said, self-efficacy is more flexible than the other three components and can be enhanced as explained above. (Figure 3.4 is an excellent “how to” guide.) Before moving on, we encourage you to assess your own core self-evaluations in Self- Assessment 3.3. Knowledge of your CSEs helps you understand other components of your personality beyond the Big Five discussed and assessed earlier. Awareness of your self- esteem, self-efficacy, locus, and emotional stability can help guide many aspects of your work life, such as what types of jobs to look for and what types of development opportunities may be most useful for you. How Positively Do I See Myself? Please be prepared to answer these questions if your instructor has assigned Self- Assessment 3.3 in Connect. 1. What is your CSE score? A score greater than 48 is high, between 36 and 48 moderate, and less than 36 low. 2. What are the implications for your performance in school? Work? 3. Now consider this scenario: You’re on a three-member team for a project in this class that requires research, a paper, and a presentation. Your CSE score is high, one team member’s is moderate, and the other’s is low. Describe the potential implications for the three of you working together and your ultimate perfor- mance on the paper and presentation. SELF-ASSESSMENT 3.3 CAREER READINESS Let’s continue our discussion of individual differences and learn about emotional intelligence (EI) next. EI is a popular OB concept and relatively more flexible than CSEs and the others discussed thus far. Organizational Behavior: A Practical, Problem-Solving Approach 104 PART 1 Individual Behavior 3.5 THE VALUE OF BEING EMOTIONALLY INTELLIGENT As we know, people deal with their emotions in a variety of ways, which is one reason we are discussing emotions in the chapter on individual differences. For a long time many people considered skill in managing emotions as simply a matter of maturity. However, since the mid-1990s researchers, consultants, and managers have increas- ingly described emotional maturity by using the phrase emotional intelligence (EI). Today, EI is big business. Hundreds of consulting companies provide EI products and services, and estimates suggest approximately 75 percent of Fortune 500 companies use them.72 What Is Emotional Intelligence?  Emotional intelligence  is the ability to monitor your own emotions and those of others, to discriminate among them, and to use this information to guide your thinking and actions. Referred to by some as EI (used in this book) and by others as EQ, emotional intelligence is a mixture of personality and emotions and has four key compe- tencies (see also Table 3.6): 1. Self-awareness 2. Self-management 3. Social awareness 4. Relationship management73 The first two dimensions constitute personal competence and the second two feed into social competence. Recall the discussion earlier in the chapter of inter- and intra-personal intelligences described by Howard Gardner. EI builds on this work. Before learning more about emotional intelligence, complete Self-Assessment 3.4. Self-awareness is fundamental to EI and having this knowledge in hand is helpful in exploring the benefits of EI and learning how to develop it. THE BIGGER PICTURE You likely already know that intelligence doesn’t tell us everything we need to know about performance. The smartest student doesn’t always get the best grades, and the smartest candidate for a job is not necessarily the best choice. While you almost certainly agree with both of these statements, what is even more certain is that people perform better if they have emotional intelligence—smart or not. When you understand the concept of emotional intelli- gence from an OB perspective, you’ll understand why it is an important person-factor input in the Organizing Framework. Realize the benefits of emotional intelligence. LO 3-5 Organizational Behavior: A Practical, Problem-Solving Approach 105Individual Differences and Emotions CHAPTER 3 TABLE 3.6 Developing Emotional Intelligence Personal Competence HOW WE MANAGE OURSELVES Capability Description Self-Awareness Emotional self-awareness Reading one’s own emotions and recognizing their impact; using “gut sense” to guide decisions Accurate self-assessment Knowing one’s strengths and limits Self-confidence A sound sense of one’s self-worth and capabilities Self-Management Emotional self-control Keeping disruptive emotions and impulses under control Transparency Displaying honesty and integrity; trustworthiness Adaptability Flexibility in adapting to changing situations or overcom- ing obstacles Achievement The drive to improve performance to meet inner standards of excellence Initiative Readiness to act and seize opportunities Optimism Seeing the upside in events Social Competence HOW WE MANAGE RELATIONSHIPS Capability Description Social Awareness Empathy Sensing others’ emotions, understanding their perspec- tive, and taking active interest in their concerns Organizational awareness Reading the currents, decision networks, and politics at the organizational level Service Recognizing and meeting follower, client, or customer needs Relationship Management Inspirational leadership Guiding and motivating with a compelling vision Influence Wielding a range of tactics for persuasion Developing others Bolstering others’ abilities through feedback and guidance Change catalyst Initiating, managing, and leading in a new direction Conflict management Resolving disagreements Building bonds Cultivating and maintaining a web of relationships Teamwork and collaboration Cooperation and team building SOURCE: Goleman, Daniel, Richard E. Boyatzis, and Annie McKee. Primal Leadership: Realizing the Power of Emotional Intelligence. Boston: Harvard Business School Press, 2002. What Is Your Level of Emotional Intelligence? Please be prepared to answer these questions if your instructor has assigned Self- Assessment 3.4 in Connect. 1. Which of the four competencies is highest for you? What are the implications for you at school and/or work? 2. Which competency is the lowest? What are the implications for you at school and/or work? 3. Do you have greater personal or social competence? What are the implications for you at school and/or work? SELF-ASSESSMENT 3.4 CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 106 PART 1 Individual Behavior You can gain considerable Insights regarding EI by observing those who seem to pos- sess and lack this valuable ID. Uber’s former CEO provides an excellent example of the latter. See the Problem-Solving Application. Darkness in the C-Suite at Uber Do you remember Travis Kalanick, the founder and former CEO of Uber? Ample evidence from an employee survey, testimonials from other execu- tives (both inside and outside of Uber), and busi- ness partners provide compelling evidence for a number of troubling traits exhibited by Uber’s founder and former CEO. When public opinion of the company took major hits due to numerous scandals—sexual harassment at corporate, allegations of rape and other illegal behavior by drivers, and a perception of greed and exploitation when it implemented surge pricing during a taxi strike at JFK airport— Kalanick claimed Uber had a public relations prob- lem, instead of acknowledging the company he founded and created had a serious culture prob- lem. This was further exacerbated by his seeming disregard, If not outright encouragement, for ram- pant sexual harassment. In addition, there is the infamous video of him arguing with an Uber driver during a ride he took. You may recall the driver expressed his concerns about the company and the challenges faced by drivers. Instead of taking these concerns as feed- back, Kalanick showed a blatant lack of empathy and a great deal of arrogance by blaming the driver, and people like him, by stating they didn’t take enough personal responsibility for their own lives. And later, when convinced by others to meet with the driver and apologize, he doubled down and argued the same points again! Another employee who witnessed the meeting described his own reac- tion as deeply troubling. The lack of willingness to accept responsibility for negative behaviors and events (e.g., sexual harassment) was exacerbated further still by bullying and retaliation against those who complained to HR.74 Kalanick has also been described as unrelent- ingly combative. In meetings he routinely switched between praising and tearing down individuals. Jeff Jones, Uber’s former president, quit after only a few months and was so eager to leave he didn’t even negotiate an exit package, leaving millions of dol- lars behind. Adding insult to injury, Uber employees were asked to rank specific business leaders, both inside and outside the company, for a survey and Kalanick ranked last in tech company CEOs!75 Using a quick checklist: Grandiose self-importance. Check. Lack of empathy. Check. Arrogant. Check. Sense of entitlement. Check. Demand excessive admiration. Perhaps. Although Travis Kalanick has already stepped down as CEO, assume he hasn’t, and apply the 3-Step Problem-Solving Approach below. Problem-Solving Application Apply the 3-Step Problem-Solving Approach Step 1: Define the problem in the confronting Uber’s board of directors. Step 2: Identify the OB concepts and theories that may point to the cause(s) of the problem. What role did emotional intelligence play in the problem you defined? Which personality attributes are evident, and how might they have contributed? Step 3: Assume Kalanick was still the CEO and make a recommendation to correct the situation. Think both short-term and long-term. Organizational Behavior: A Practical, Problem-Solving Approach 107Individual Differences and Emotions CHAPTER 3 Now that you have some knowledge of your EI you might wonder, why another type of intelligence, and how is EI different from IQ? Those who developed the concept of EI argue that traditional models of IQ are too narrow, failing to consider interpersonal competence. They also argue from a practi- cal perspective that EI is more flexible than IQ and can be developed throughout your working life. This is consistent with Figure 3.2 and the practical benefits of relatively flexible IDs. Let’s explore the benefits of EI and how to develop yours. Benefits of EI What Research Tells Us EI has been linked to better social relationships, well- being, and satisfaction across all ages and contexts, including work.76 For instance, store managers’ EI was shown to foster greater team cohesiveness (covered in Chapter 8) among sales associates, and this in turn boosted sales.77 EI has also been linked with creativity, helping employees manage their emotions amid the challenges of the creative process to stay on task and remain in the cre- ative space. EI further enables individuals to apply positive emotions to their work, improv- ing their creative outcomes.78 EI also seems to have a dark side. In a study with undergraduates, researchers found those with higher EI were more effective at faking pre-employment personality tests. Participants were better able to change their answers to align with the characteristics listed in the job description.79 And sadly, some people use their EI skills to manipulate others, faking empathy or supporting another only to make yourself look good, rather than authentically caring and helping.80 He says, “People want to be led, but you’ve got to know how to lead different people. . . . I treat everybody differently . . . and if you do that in busi- ness, you’re going to be successful.”81 Figure 3.5 summarizes the relationships between EI and several individual differences we’ve covered as well as several outcomes. EI does not contain any strong relationships with other inputs or outcomes contained in the Organizing Framework. In fact, there are an equal number of weak and moderate relationships. Most importantly, EI was not found to be the big driver of performance as suggested by some consultants and academics. How to Develop Your EI? Dan Goleman, the person whose book helped take EI mainstream, highlights the importance of self-awareness—both how you see yourself and how others see you (recall our discussion from Chapter 1). He and his colleague, Michelle Nevarez, recommend using the following three questions to build your EI. We think you’ll notice, what they recommend sounds much like the problem-solving approach used in this book. 1. What are the differences between how you see yourself and others see you? This means you need to do a self-assessment on the competencies in Table 3.6, as well Tillman Fertitta is a self-made billionaire and now owns the NBA’s Houston Rockets, Golden Nugget Casinos, and the Landry’s Restaurant Group. He learned to cook in his father’s restaurant in Galveston, dropped out of the University of Houston, and is now the president of its Board of Regents.82 Donna Ward/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 108 PART 1 Individual Behavior as get feedback on how others see you in terms of the same competencies. Feed- back can come from friends, coworkers, customers, classmates, your boss, or a personal coach. 2. What matters to you? Once the information from #1 is in hand, sift through and decide what is important to you. Put differently, ascertain your goals and use the infor- mation to help determine which aspects of your EI need development. 3. What changes will you make to achieve these goals?83 This is the planning part; you have a goal, information to help, now you need a plan. Make a plan, implement, review, and revise. (You’ll learn much more about goal setting and how to make your EI development efforts more successful in Chapter 6.) Practical Takeaways EI certainly makes common sense and is appealing on the sur- face. However, despite its popularity and the millions of dollars spent on EI programs every year, the research results are mixed. Proceed with caution.84 Beware of individuals and companies claiming EI is the silver bullet of performance. It is but another individual difference, and no single attribute explains all behavior. Nevertheless, you should identify and develop your own EI to realize the clear interpersonal benefits. Table 3.6 can serve as a guide. Now that you’ve learned about emotional intelligence, let’s explore emotions themselves. FIGURE 3.5 Relationships between Emotional Intelligence and Individual Differences and Outcomes V ar ia bl es Extroversion Conscientiousness Emotional Stability Cognitive Ability Self-efficacy Supervisor-rated Job Performance Self-rated Job Performance Subjective Well-being Mental Health Physical Health Strength of Relationship Not significant Weak Moderate Strong SOURCE: Sánchez-Álvarez, Nicolás, Natalio Extremera, and Pablo Fernández-Berrocal. “The Relation between Emotional Intelligence and Subjective Well-Being: A Meta-Analytic Investigation.” The Journal of Positive Psychology 11, no. 3 (August 2015): 276–85. http://dx.doi.org/10.1080/17439760.2015.1058968; Joseph, Dana L., Jing Jin, and Daniel A. Newman. “Why Does Self-Reported Emotional Intelligence Predict Job Performance? A Meta-Analytic Investigation of Mixed EI.” Journal of Applied Psychology 100, no. 2 (2015): 298–342. http://dx.doi.org/10.1037/a0037681; and Martins, Alexandra, Nelson Ramalho, and Estelle Morin. “A Comprehensive Meta-Analysis of the Relationship between Emotional Intelligence and Health.” Personality and Individual Differences 49, no. 6 (October 2010): 554–64. https:doi:10.1016/j.paid.2010.05.029. Organizational Behavior: A Practical, Problem-Solving Approach 109Individual Differences and Emotions CHAPTER 3 3.6 UNDERSTAND EMOTIONS TO INFLUENCE PERFORMANCE Many people believe employees should check their emotions at the door when they come to work. This is unrealistic and simply impossible. Like personality and the other IDs dis- cussed thus far, emotions are an integral part of who we are as people, a fundamental part of the human experience, and greatly influence our performance. Given this reality, you will want to understand emotions so you can manage them as a process to benefit you, your team, and your employer. This will help make emotions a practical tool to use, rather than something to avoid, ignore, or suppress. Emotions—We All Have Them, but What Are They?  Emotions  are complex, relatively brief responses aimed at a particular target, such as a person, information, experience, or event. They also change psycho- logical and/or physiological states.85 Researchers distinguish between felt and dis- played emotions. For example, if your boss informs you that you’ve been passed over for a promotion, you might feel disappointed and/or angry (felt emotion). You might keep your feelings to yourself or you might begin to cry. Both reactions are instances of dis- played emotions. It’s just that in the first case you are choosing not to show emotion, which means your display is “no emotion.” Your display can affect the outcomes, in this case your manager’s reactions. Taxi drivers, waiters, and hairdressers all received higher tips when they were trained to manage what they felt and the way they displayed these feelings.86 Emotions may also motivate your behavior and are an important means for commu- nicating with others.87 A smile on your face signals you are happy or pleased, while a scowl and a loud, forceful tone of voice may reflect anger. We also know our emotions can and often do change moment to moment and thus are more flexible than the other IDs discussed so far. For these reasons, emotions have important implications for you at school, at work, and in every other social arena of your life. They can even be the root cause of why you procrastinate. Read the Applying OB box and learn how to combat your tendencies. Explain how understanding emotions makes people more effective. LO 3-6 THE BIGGER PICTURE The human experience is awash in emotions, and you won’t be surprised to learn emotions are important both at work and as an individual-level process in the Organizing Framework. We’ll explore the difference between felt versus displayed emotions and how emotions serve as an important means of communication with ourselves and others. Most of your experiences elicit a mix of positive and negative emotions, and these emotions are tightly related to your goals. Organizational Behavior: A Practical, Problem-Solving Approach 110 PART 1 Individual Behavior Emotions as Positive or Negative Reactions to Goal Achievement You’ll notice from the definition you can think of emotions, whether positive, negative, or mixed, in terms of your goals.89 • Positive. If your goal is to do well in school and you graduate on time and with hon- ors, you are likely to experience positive emotions, such as joy, gratitude, pride, satis- faction, contentment, and relief. These emotions are positive because they are congruent (or consistent) with your goal. • Negative. Negative emotions are triggered by frustration and failure to meet goals. They are said to be goal incongruent. Common negative emotions are anger, fright, anxiety, guilt, shame, sadness, envy, jealousy, and disgust. Which of these are you likely to experience if you fail the final exam in a required course? Failing would be incongruent with your goal of graduating on time with a good GPA. Typically, the more important the goal, the more intense the emotion. • Mixed. Meeting or failing to meet our goals can also generate mixed emotions. Let’s say you receive a well-earned promotion that brings with it positives—increased responsibility and higher pay—but only if you relocate to another state, which you don’t want to do. Applying OB Most people procrastinate at least occasionally, which means we irrationally delay an action despite expect- ing to be worse off. We often attribute procrastination to poor time management or even laziness, but it seems research has revealed a true cause— emotions.88 Researchers say procrastination is a way to deal with stress. That’s right. Putting off studying for your next exam is one way of dealing with the stress of preparing for it. The rationale is many things you do while procras- tinating are often things that make you feel good or you enjoy, such as shopping, going out with friends, watching TV, or playing video games. They help ease the anxiety associated with the task you need to do (study for an exam). Compounding this further, it seems that people who are more impulsive tend to be more anxious, and the more anxiety they experience, the more likely they are to procrastinate to make themselves feel better. With this in mind, what can occasional and chronic procrastinators do to help themselves? 1. Set subgoals. Whatever the needed or dreaded task is, break it into smaller parts or subgoals and specify a start and end time for each. Doing this will help the task seem less daunting, which will reduce your associated anxiety and the temptation to do something else more enjoyable (procrastinate). 2. Just do it. We’re not talking about going for a run or playing sports, which while healthy may be another form of procrastination. Instead, we’re saying to get started and do part of the task. Once you’ve begun, completing it will seem less difficult. 3. Envision the benefits and feelings. How will you feel when you’re finished? What will you be able to do? This seems obvious enough, but research has shown that people rarely think of such benefits when they are procrastinating. 4. Reward yourself. Building on No. 3, reward your- self for achieving the subgoals, as well as the over- all goal or task. Blaming your emotions won’t get your term paper done or help you prepare sufficiently for the upcoming client presentation. Understanding the role emotions play may help you recognize and overcome your ten- dencies. With this advice in mind, get to work! Adapted from S. Wang, “To Stop Procrastinating, Start by Understanding the Emotions Involved,” The Wall Street Journal, August 31, 2015, http://www.wsj. com/articles/to-stop-procrastinating-start-by-understanding-whats-really- going-on-1441043167. Do You Procrastinate? Blame Your Emotions! Organizational Behavior: A Practical, Problem-Solving Approach 111Individual Differences and Emotions CHAPTER 3 Besides Positive and Negative, There’s Past vs. Future The negative–positive distinction matters—you’re happy, you’re sad. However, another characteristic of emotions can be especially useful for managers. Assume you’re a manager in a company that just downsized 15 percent of its employees. This is stressful for all those who lost their jobs, but let’s focus on two fictitious employees who survived the cuts— Shelby and Jennifer. Both feel negatively about the job cuts, but in different ways. Shelby: Her dominant emotion is anger. People are typically angry about things that happened (or didn’t happen) in the past. Anger is a backward-looking or retrospec- tive emotion. Jennifer: Her dominant emotion is fear. People are typically fearful of things that might happen in the future. Fear is a forward-looking or prospective emotion. Practical implications for managers: Knowing these emotions tells you that Shelby is likely most concerned with something that happened in the past, perhaps the way decisions were made about whom to terminate. She may think the process was unfair and caused three of her favorite colleagues to be let go. As for Jennifer, knowing she is dominated by fear tells you that uncertainty about the future—perhaps her job might be cut next—concerns her most. As their manager, you can use knowledge of Shelby’s and Jennifer’s emotions to guide your own actions. How Can I Manage My Negative Emotions at Work? Theoretically, to manage your emotions at work you could simply translate felt emotions into displayed emotions—unfiltered. Besides being unrealistic this would be disastrous. To help, we explore emotion display norms, how to handle a host of negative emotions, and the emotions related to a job search. Organizations have emotion display norms or expectations regarding the types of emo- tions that are appropriate for employees to show in different situations.90 For instance, to always act happy and positive in front of customers or your boss, remain calm in meetings, and don’t show anger. What about crying? Many people think this is taboo and a reputa- tion killer, but not as many people feel this way as you might think. For instance, 38 per- cent of participants in a recent study reported crying is okay occasionally, but if it is frequent then your career could suffer. This compares to 31 percent who said crying had no effect. However, 32 percent thought it is never okay and if you do cry, then people will perceive you as weak or immature.91 But what can you do when you feel negative emotions at work? The OB in Action box describes the costs and benefits of displaying anger at work. Andrew Cornell, CEO of Cornell Iron Works, under- stands the days of the screaming boss are, or at least should be, a thing of the past. He deals with anger toward his employees by holding frequent and brief meetings, “rather than ‘waiting until the end, throwing a nuclear bomb and leaving blood all over the wall.’”92 Screaming takes other forms too. At work you might receive a hostile e-mail berating you, which was copied to your coworkers in ALL CAPS. Science supports the many people who believe yelling, whether by e-mail or face-to-face, is inappropriate and counterproductive. You may have been in a group meeting when someone was so angry he or The Good and Bad of Anger at Work OB in Action Organizational Behavior: A Practical, Problem-Solving Approach 112 PART 1 Individual Behavior Anger isn’t the only negative emotion. Table 3.7 provides guidance on a variety of oth- ers and how to deal with them. As you study the table, think of your own experiences and reactions and how the recommendations could have helped you handle them. she began to scream and bully another person. Both are unprofessional and uncalled for, and they dam- age the reputation of the perpetrator. Costs of Negative Emotions Growing research evidence confirms the suspected undesirable out- comes of negative emotions. For instance, managers need to be careful about generating feelings of shame and/or anger when giving feedback to employees because these particular emotions have been linked to counterproductive work behaviors such as abuse of others and theft.93 Unhappy Customers May Suffer Twice Custom- ers’ negative emotional displays, such as verbal aggression, have been shown to negatively affect employee job performance. Specifically, receivers of the aggression made more mistakes recalling and processing the customers’ complaints.94 You may want to think twice before venting on a customer service representative. What About the Benefits of Anger? Expressing your anger sometimes can actually help solve the problem. Your message is communicated, though forcefully, which can lead to better understanding. Displays of anger are more likely to be beneficial if they are directed at organizational issues and prob- lems instead of at individuals. Being angry at the problem rather than the person is likely to be per- ceived more constructively and less defensively.95 YOUR THOUGHTS? 1. What advice would you give to managers on how to handle their own anger and other nega- tive emotions at work? 2. What advice would you give to managers on how to handle the anger and negative emotions felt (and expressed) by their direct reports? 3. What has been the most productive way for you to deal with your negative emotions? TABLE 3.7 Common Negative Emotions and How to Handle Them IF YOU’RE FEELING . . . THEN YOU MIGHT WANT TO . . . Fearful Step back and try to see the situation objectively. Ask yourself: “Is my business or career truly at risk?” If not, you may be feeling nervous and excited rather than fearful. Rejected Do you respect the opinion of the person rejecting you? If the comment came from someone you don’t respect, rejection may instead be a backhanded compliment. If you do respect the person, you may want to clarify by asking: “The other day you said ________ and I felt hurt. Can you explain what happened?” Angry Get some distance from the situation to avoid blowing your top in the heat of the moment. Once you calm down, pinpoint the reason you are angry. Most often the reason is someone violated a rule or standard that is deeply important to you. Find a way to communicate the importance of the rule or standard to the person so it doesn’t happen again. Frustrated We all get frustrated at work when results don’t meet our expectations, given the amount of time and energy we’ve applied. The goal often is achievable, but progress is slow. First, reas- sess your plan and behavior. Do they need modification? If not, perhaps you simply need to be patient. Inadequate Even those with the highest self-esteem feel they don’t measure up at times. Our discussion of self-efficacy and how to build it in Table 3.5 can guide your solution to this emotion. Stressed Time constraints are a major source of stress. Too many commitments, too little time. You need to prioritize! Do what is important rather than what is urgent. For example, most e-mail is urgent but not important. SOURCE: James, Geoffrey. “Feeling Negative? How to Overcome It.” Inc., November 26, 2012. https://www.inc.com/geoffrey-james/how-to-handle-negative- emotions-at-work.html. Organizational Behavior: A Practical, Problem-Solving Approach 113Individual Differences and Emotions CHAPTER 3 Finally, searching for a job can be an emotional experience, the proverbial rollercoaster— up and down and up and down again. The mixture of positive and negative emotions can be daunting, so what can you do? The following advice may help, but before we get to the emotions it is important to do two things first. Become organized and be disciplined. A job search can be overwhelming, time consuming, and often happens over a long period of time. It therefore is important to create a system to keep track of your efforts, establish a routine, and stick to both!96 Now let’s address some of the common emotions in the Applying OB box. Applying OB You cannot see the future, but you can anticipate potential scenarios or outcomes in your job search. Include in your planning, “If X happens, then I’ll do Y.” This may help reduce the uncertainty of the negative emotions that go along with it. Fear. Yes, once again fear rears its head. Although often justified it is rarely helpful. There is no single or best way to deal with it, but knowing that fear is future- oriented can help create different scenarios for inter- views and outcomes. Doing so will reduce the uncertainty and hopefully your fear too. Frustration. Some job descriptions read like autobiog- raphies, and the only thing missing is your picture. Yet, you don’t get an interview. Or, you feel you nailed the interview but don’t get the job offer. Besides disap- pointment, this can be frustrating. The best advice here is the cliché that “you must be in it to win it.” Don’t take the process personally. The employer may have made the wrong decision, or they may have had an internal candidate already picked out and are just going through the motions with you. Whatever the rea- son, pick yourself up and try again. Look at these occurrences not as setbacks, but as learning opportu- nities to further hone your resume, and communica- tions and interviewing skills. Excitement. Yes, the job search has positive emotions too, and you must also manage them. Envision passing the screening call, nailing the first interview, and feel- ing even better about the second. Wonderful! But don’t become complacent and stop your search. Continue to work the process. This opportunity may stall or fall through, or you may even find a more appealing opportunity. Managing Emotions During Job Search We’ll conclude the chapter by distilling some specific applications of what you just learned. CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 114 PART 1 Individual Behavior Takeaways for Me Use your new knowledge of personality, intelligences, CSEs, emotions, and EI, along with the self-assessments and concepts learned in Chapter 3 to: 1. Enhance your self-awareness. 2. Identify the pros and cons of particular IDs for you at school and work. 3. Create profiles of the managers and leaders where you work (or where you want to work if you’re not currently employed). Profiling the “important people” in this way will not only illustrate the concepts you’ve learned, but serve as a template or prototype of what is valued by a particular employer. In other words, create a profile of what successful people look like in terms of individual differences and use this knowledge to highlight the same qualities you possess during job interviews and to guide your own development. 4. Use your knowledge of emotional intelligence, because despite mixed research results, it can make or break an individual in any given job and have implications for the larger career. Takeaways for Managers IDs have great practical significance for managers. 1. Explicitly include the individual differences that matter most in job descriptions. This means you are well served to list job responsibilities and the employee characteristics you think are most important to be successful in a specific job. 2. Use your knowledge of the continuum when selecting and training employees. Realize you often will want to hire and test for relatively fixed traits (intelligence and personality), because these are not easy to change, and consider training or coaching the others. 3. Assess your own emotional intelligence, paying explicit attention to both personal and social competence. Don’t simply make a summary judgment— “I have high EI,” or “My EI is pretty good.” Given the potential consequences of low EI, you are wise to put in the effort to learn about and improve both aspects of yours (if needed). After doing this, you will be better prepared to assess the emotional intelligence of those you man- age and those you consider hiring. These actions will benefit you, them, other cowork- ers, and the larger organization. Individual differences are fundamental to who you are as an employee and as a per- son. Understanding the many concepts presented here will assist you in better understand- ing yourself and others, and perhaps enhance your problem-solving skills too. Recall the person-situation inputs in the Organizing Framework? You have learned a great deal about person inputs and yourself in the process! 3.7 MAKING THE CONNECTION: HOW DO INDIVIDUAL DIFFERENCES AND EMOTIONS AFFECT MY PERFORMANCE? THE BIGGER PICTURE We conclude this chapter with practical applications of knowledge and tools related to individual differences, intended to improve your effectiveness as both an employee and manager. Describe the implications of individual differences and emotions for you and managers. LO 3-7 Organizational Behavior: A Practical, Problem-Solving Approach 115Individual Differences and Emotions CHAPTER 3 You learned that who you are affects performance because individual differences (IDs) play an important and often fundamental role in the way you perform at school, at work, and in other con- texts. Reinforce and consolidate your learning with the Key Points and Organizing Framework. Then challenge your mastery of the material by completing the Problem-Solving Application Case and Legal/Ethical Challenge. Key Points for Understanding Chapter 3 You learned the following key points. 3.1 DISTINGUISHING INDIVIDUAL DIFFERENCES BASED ON THEIR RELATIVE STABILITY • Individual differences (IDs) is a broad category used to describe the vast number of attributes (traits and behaviors) that describe a person. • It is helpful to think of IDs in terms of their rel- ative stability. 3.2 HOW MULTIPLE INTELLIGENCES AFFECT MY PERFORMANCE • Intelligence Is more than IQ and represents an individual’s capacity for constructive think- ing, reasoning, and problem solving. • Multiple intelligences are linguistic, logical, musical, kinesthetic, spatial, interpersonal, intrapersonal, and naturalist. • Identifying the intelligences relevant to par- ticular jobs can be used to select, place, and develop individuals accordingly. 3.3 WAYS IN WHICH PERSONALITY CAN AFFECT MY PERFORMANCE AT SCHOOL AND WORK • Personality is the combination of stable physi- cal, behavioral, and mental characteristics that give individuals their unique identities. • The Big Five personality dimensions are extroversion, agreeableness, conscientious- ness, emotional stability, and openness to experience. • People with proactive personalities identify opportunities and act on them, show initiative, take action, and persevere until meaningful change occurs. • Employers use personality tests to select and place employees, but no “ideal personality” exists and tests are often misused. 3.4 THE IMPACT OF CORE SELF-EVALUATIONS ON PERFORMANCE • Managers can realize the practical value of CSEs by selecting employees based on them and then training them to enhance elements of their CSEs. • Self-efficacy is a person’s belief about his or her chances of successfully accomplishing a specific task. • Self-efficacy beliefs can be improved via experience, behavior models, persuasion from others, and emotional state. 3.5 THE BENEFITS OF EMOTIONAL INTELLIGENCE • Emotional intelligence (EI) is the ability to monitor your own and others’ feelings and emotions and use this information to guide your thinking and actions. • EI is associated with higher sales and improved retention, as well as leadership effectiveness. • EI can be developed by building personal and social competence. 3.6 HOW UNDERSTANDING EMOTIONS MAKES PEOPLE MORE EFFECTIVE • Emotions are complex, relatively brief res- ponses aimed at a specific target. What Did I Learn? Organizational Behavior: A Practical, Problem-Solving Approach 116 PART 1 Individual Behavior • IDs are insightful for understanding, motivat- ing, and otherwise managing employees. • Awareness and management of your and oth- ers’ emotions can enhance performance. The Organizing Framework for Chapter 3 As shown in Figure 3.6, you learned how individ- ual differences can present themselves through the process of emotions (both felt and expressed) at the individual level, affecting many workplace outcomes across individual, group/team, and organizational levels. • Most experiences are a mixture of positive and negative emotions, rather than purely one or the other. • Emotions can be distinguished in terms of a future or a past orientation. • Emotion display norms dictate which types of emotions are expected and appropriate in particular organizational situations. 3.7 HOW DO INDIVIDUAL DIFFERENCES AND EMOTIONS AFFECT MY PERFORMANCE? • Knowledge of IDs is abundant and a useful way for leveraging your strengths and devel- oping your weaknesses. FIGURE 3.6 Organizing Framework for Understanding and Applying OB © 2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. INPUTS PROCESSES OUTCOMES Person Factors • Intelligences • Personality • Proactive personality • Core self-evaluations • Self-efficacy • Locus of control • Self-esteem • Emotional intelligence Situation Factors Individual Level • Emotions Group/Team Level • Group/team dynamics Organizational Level Individual Level • Task performance • Work attitudes • Well-being/flourishing • Turnover • Career outcomes Group/Team Level • Group/team performance • Group satisfaction Organizational Level • Financial performance • Survival • Reputation Organizational Behavior: A Practical, Problem-Solving Approach 117Individual Differences and Emotions CHAPTER 3 John Schnatter founded Papa John’s Pizza in a broom closet in his father’s tavern in 1984. The restaurant is now the fourth largest pizza delivery chain in the United States with more than 5,300 corporate and franchisee owned establishments worldwide.97 Papa John’s revenues exceeded $1.5 billion in 2018 but were down for the first time in almost ten years.98 The company is also down a spokesperson. Schnatter, bet- ter known as “Papa John,” was ousted by the organiza- tion after a series of controversial statements.99 Let’s take a closer look at the issues facing Papa John’s and its founder. PROBLEMATIC STATEMENTS Schnatter told college students in 2013 that he “has a real problem with the English language” while dis- cussing his poor score on the verbal portion of the SAT. Those who know him seem to agree with that sentiment, but don’t believe grammar is the under- lying problem. For example, Steve Coomes, a restaurant industry journalist who has interviewed Schnatter a dozen times, wrote a blog post in 2018 titled “A tale of a man who couldn’t tame his tongue” in which he profiled a CEO he claims “has always said too much.”100 One of Schnatter’s first controversial statements was in 2012 when he discussed the passage of Presi- dent Obama’s Affordable Care Act. What caught the public’s attention was not his political opposition to the law, but the fact that he complained to shareholders that it would increase the cost of a large pizza by 14 cents. Papa John’s social media was soon inun- dated with outraged customers claiming they would pay a couple extra cents so Papa John’s employees had health insurance. Others said they would take their business to a restaurant that has empathy and “. . . doesn’t begrudge their employees the ability to seek a doctor when they’re ill.”101 Schnatter found a new target in 2017, the National Football League (NFL). Papa John’s was a significant sponsor of the league at the time that many players were kneeling during the national anthem to raise awareness of police brutality and social injustice. Again, Schnatter caused controversy because he could not keep his emotions and impulses under con- trol. According to the Washington Post he said that the NFL’s “poor leadership” and inability to stop the pro- tests hurt the league’s TV ratings, which in turn hurt sales of his pizza because it is advertised heavily during games. To make matters worse, a white suprem- acist group embraced the remarks and dubbed Papa John’s as the official pizza of the alt-right. Papa John’s condemned the group and distanced itself from the endorsement, but the damage was already done and the company had to apologize for Schnatter’s “divisive” remarks.102 The NFL also broke ties with the company, according to the New York Times.103 Schnatter was forced to resign as the company’s CEO after making the controversial comments about the NFL, but that did not stop him from continuing to cause public outrage with his statements. In May 2018 Schnatter, who was still serving as Papa John’s chairman at the time, used the n-word on a confer- ence call with executives and a marketing agency when referring to African Americans. The marketing agency terminated its contract with Papa John’s and Schnatter was forced to resign as the company’s chairman.104 PAPA JOHN BATTLES PAPA JOHN’S Schnatter’s comments gravely injured the restaurant chain he founded. Sales at North American stores fell more than 7% in 2018 and the organization’s stock lost a third of its value.105 Papa John’s tried to distance itself from Schnatter to stop the bleeding. The board of directors evicted Schnatter from the company’s Louisville, Kentucky, headquarters, took him off pizza boxes and commercial materials, and directed him to cease all communications with internal and external stakeholders.106 Papa John would not go quietly though. He hurled multiple lawsuits at his former company and took out a full-page newspaper ad directing Papa John’s 120,000 employees to a website he set up. The website includes press releases, news articles, and public fil- ings in support of Schnatter.107 Papa John’s and Schnatter reached an agreement in 2019 to resolve many of their points of contention. As a result of the agreement, Schnatter will resign from the Papa John’s board of directors and cease litigation against his former company. However, the matter is far from closed. Schnatter’s spokesperson says he still “retains his ability to assert new legal claims” in the future related to his ouster.108 Moreover, the founder is still the company’s largest individual shareholder, own- ing a 19% stake.109 PROBLEM-SOLVING APPLICATION CASE Better Ingredients. Better Pizza. Worst Spokesperson. Organizational Behavior: A Practical, Problem-Solving Approach 118 PART 1 Individual Behavior problem. For each cause explain why or how it causes the problem. Asking why multiple times is more likely to lead you to root causes of the problem. For example, do particular individual differences John Schnatter possesses help explain the problem you defined in Step 1? B. Follow the same process for situation factors. For each ask yourself, why is this a cause? By following the process of asking why multiple times, you are likely to arrive at a more complete and accurate list of causes. Again, look to the Organizing Framework for guidance. C. Now consider the Processes box in the Organiz- ing Framework. Are any processes at the indi- vidual, group/team, or organizational level potential causes of your defined problem? It cer- tainly seems Schnatter’s emotions are notable aspects of his experience and predicament. Do they help explain the problem defined in Step 1? What about the board and their governance of Papa John’s? What about the fact that Schnatter is still a significant shareholder in the company? For any process you consider, ask yourself, why is this a cause? Again, do this for several itera- tions to arrive at the root causes. D. To check the accuracy or appropriateness of the causes, be sure to map them onto the defined problem and confirm the link or cause and effect connection. STEP 3: Recommend solutions. Make recommendations for solving the problem, considering whether you want to resolve it, solve it, or dissolve it. Which recommendation is desirable and feasible? A. Given the causes identified in Step 2, what are your best recommendations? Use material in the current chapter that best suits the cause. Remember to consider the OB in Action and Applying OB boxes, because these contain insights into what others have done. Details of this case, for instance, describe how Papa John’s board is concerned and has legitimate authority to make changes at the organization and repair its reputation. What might they do? B. Be sure to consider the Organizing Framework— both person and situation factors, as well as pro- cesses at different levels. C. Create an action plan for implementing your recommendations and be sure your recommen- dations map onto the causes and resolve the problem. THE COMPANY’S CONTINUED STRUGGLES Papa John’s continues to reel under negative public- ity even after Schnatter’s exile. The company has closed over 100 locations in the past year while competitors such as Dominos and Pizza Hut have opened new ones.110 It has also been forced to assist suffering franchisees by providing royalty relief and other types of subsidies, further deteriorating the company’s bottom line.111 APPLY THE 3-STEP PROBLEM- SOLVING APPROACH TO OB Use the Organizing Framework in Figure 3.6 and the 3-Step Problem-Solving Approach to help identify inputs, processes, and outcomes relative to this case. STEP 1: Define the problem. A. Look first at the Outcome box of the Organizing Framework in Figure 3.6 to help identify the important problem(s) in this case. Remember, a problem is a gap between a desired and current state. State your problem as a gap and be sure to consider problems at all three levels. If more than one desired outcome is not being accom- plished, decide which one is most important and focus on it for steps 2 and 3. B. Cases have key players, and problems are gen- erally viewed from a player’s perspective. You need to determine from whose perspective— employee, manager, team, or the organization— you’re defining the problem. As in other cases, whether you choose the individual or organiza- tional level in this case can make a difference. C. Use details in the case to determine the key problem. Don’t assume, infer, or create problems that are not explicitly included in the case itself. Only use what is provided in the case. D. To refine your choice, ask yourself, why is this a problem? Explaining why helps refine and focus thinking. Focus on topics in the current chapter, because we generally select cases that illustrate concepts in the current chapter. STEP 2: Identify causes. Using material from this chapter and summarized in the Organizing Framework, identify what are the causes of the problem you identified in Step 1. Remem- ber, causes tend to appear in either the Inputs or Pro- cesses boxes. A. Start by looking at the Organizing Framework (Figure 3.6) and determine which person factors, if any, are most likely causes of the defined Organizational Behavior: A Practical, Problem-Solving Approach 119Individual Differences and Emotions CHAPTER 3 LEGAL/ETHICAL CHALLENGE To Test or Not to Test, That Is a Problem Companies across industries have tested for drugs for many years, and depending on the job and the drug, few would argue against such practices. For instance, no one wants pilots, air traffic controllers, or surgeons to be altered in any way while performing their duties. In the past when there was ambiguity about drugs and jobs the law made it easier—if the drug is illegal for recreational use then it is reasonable to include it in testing, pre- and post-employment. This is why few people today or in the past would support the use of heroin or cocaine at work, and thus testing for these Is still widely accepted. But Now There Is Recreational Pot (Not Medicinal) Although still illegal at the federal level, marijuana is legal for medicinal uses in 39 states and for recre- ational use in 10 (as of early 2019), and a Gallup poll showed 64 percent of Americans favor its legaliza- tion.112 These changing attitudes and legal complexi- ties are forcing owners, managers, and employees to reconsider their positions and policies related to drugs and drug testing in the workplace. Some argue testing is obsolete while others claim the current situation requires even greater diligence.113 The state of Maine, as an example, has outlawed pre- employment testing and dismissal for a first positive test for pot use at work, which has led companies there and elsewhere to eliminate or at least reduce testing. Vermont also legalized recreational use but does not require employers to tolerate possession or use at work, nor does it forbid them from testing for it.114 On the other hand, many argue employers have a responsibility to provide a safe and productive work- place, and to the extent policies and practices related to marijuana (or any other substance) undermine these responsibilities, then such policies are difficult to defend. The failure to establish and enforce such policies erodes employee morale and potentially increases legal liability for employers. Additionally, since opioids and other prescription drug misuse is epidemic, many think drug policies and practices need to be tougher at work, not more relaxed. Further sup- port for this position is that 4.2 percent of urine tests done on employees in 2016 were positive, the highest level in more than a decade.115 What About Unreliable Tests? As before and still, those who test positive almost always claim their exposure was indirect, a situation factor, and it was the secondhand smoke of a partner, friend, person sitting next to them at a concert or in a car. Experts and processes today reduce the likelihood of false positives to nearly zero, and many processes automatically use a second and more stringent testing method when the initial test comes back positive. Fur- thermore, testing today allows for a threshold level for all drugs, and the thresholds are now high enough to require being stuck in a closet with four friends smok- ing pot heavily for hours in order for a bystander to register positive.116 This poses quite a dilemma for owners, managers, and employees. Let’s explore your own views and rec- ommended actions with the following questions. 1. What is your position on drug testing at work, both pre- and post-employment? Explain. 2. Assume you are a manager of employees across multiple states, some with recreational drug legalization and others not, what would you do? 3. Employees in most companies are allowed to take smoke breaks, historically for cigarettes, but what if now they want to include pot-breaks in those states where marijuana is legal? Assume you own the company, does that change your views? Organizational Behavior: A Practical, Problem-Solving Approach LO 4-1 Describe how you form perceptions of others. LO 4-2 Discuss how awareness of stereotypes helps you make better decisions. LO 4-3 Explain how causal attributions help managers interpret employee performance. LO 4-4 Describe the four layers of diversity and how they help organizations manage diversity effectively. LO 4-5 Discuss the business rationale for managing diversity. LO 4-6 Discuss the most common barriers to implementing successful diversity programs. LO 4-7 Explain what organizations are doing to manage diversity effectively. LO 4-8 Describe the implications of social perception and managing diversity for you and managers. After reading this chapter, you should be able to: The Organizing Framework shown in Figure 4.1 summarizes the key concepts discussed in Chapter 4. We discuss the impact of three important person factors—diversity, demographics, and stereotypes, and the situation factor of diversity climate on a host of processes at the individual, group/team, and organizational levels. These person and situation factors affect the individual level processes pertaining to perception, attributions, and psychological safety. They also influ- ence processes at the group/team and organizational levels. One of the biggest takeaways from this chapter is the fact that the combination of inputs and processes shown in Figure 4.1 have a broad effect on individual, group/team, and organizational level outcomes. Try to observe how the inputs and processes affect individual level outcomes such as task performance, work attitudes, well-being, flourishing, turnover, and career outcomes such as promotions. At the same time, you should learn that concepts discussed in this chapter also affect group/team level outcomes of performance and satisfaction as well as organizational outcomes like being an employer of choice, customer satisfaction, and reputation. 4 Social Perception and Managing Diversity C ai a Im ag e/ Im ag e So ur ce Organizational Behavior: A Practical, Problem-Solving Approach 121Social Perception and Managing Diversity CHAPTER 4 FIGURE 4.1 Organizing Framework for Understanding and Applying OB ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. INPUTS PROCESSES OUTCOMES Person Factors • Diversity • Demographics • Stereotypes Situation Factors • Diversity climate Individual Level • Perceptions • Attributions • Psychological safety Group/Team Level • Group/team dynamics Organizational Level • Options to manage diversity Individual Level • Task performance • Work attitudes • Well-being/flourishing • Turnover • Career outcomes Group/Team Level • Group/team performance • Group satisfaction Organizational Level • Employer of choice • Customer satisfaction • Reputation This team of professionals is focused on finalizing plans for a new office space. Success in this effort requires coordination among a diverse set of people, and this is not always an easy task. Research and anecdotal evidence reveals that diversity can promote greater performance once people learn to work effectively with people different from themselves. stockbroker/123RF Organizational Behavior: A Practical, Problem-Solving Approach 122 Winning at Work Perception Plays a Key Role in Getting a Job Do’s • Be aware of each platform’s policies and procedures because they tend to vary. • Focus on the quality of your posts rather than the quantity. • Use Twitter and LinkedIn to play up your professional inter- ests (like sharing relevant news articles). • Cross-check your résumé and LinkedIn profile to make sure there are no discrepancies. • Share information about your volunteer activities and work with professional associations. • Make sure there are no typos or grammatical errors in your materials. • Remember to continuously update your profiles. Don’ts • Don’t bad-mouth a current or former employer, col- league, or company. • Avoid foul language and negative remarks. • Don’t post when you are impaired, or even when you are overly tired or emotional. • Don’t post anything that might be perceived as rac- ist, biased, sexually oriented, or illegal.5 More recruiters than ever are using social media to find good employees. A recent U.S. survey of 800 recruiters by Jobvite revealed that 25 percent of hir- ing companies overall are developing recruiting methods that rely on Insta- gram; the rate is 63 percent among technology companies. Results also showed that nearly half the companies surveyed (43 percent) have used texting to communicate with job applicants, and they report a high approval rating for those communications.1 Another survey reveals that nearly 3 in 4 Millennial job seekers (aged 18 to 34) found their most recent job through social media. That’s not too surprising if you con- sider that 82 percent of hiring organizations report using social media to recruit “passive” candidates; that is, those who are not actively looking for a job.2 Perceptions Start with Social Media Posts A national CareerBuilder survey of more than 1,000 hiring and HR managers found that 7 in 10 research job candi- dates online, using their social network profiles to assess their potential fit with the company. Nearly half said if they couldn’t find a candidate online, they would hesitate to get in touch for an interview. Although the Internet is a gold mine of information for recruiters, a poorly managed online image can hurt your chances of finding a job. Forty percent of employers in the CareerBuilder survey report forming a negative impression of candidates who posted “provoca- tive or inappropriate” photos; 36 percent disliked online revelations of alcohol or drug use; and 31 percent were turned off by expressions of race, gender, or religious bias.3 Consider the experience of Pete Maulik, chief strategy officer at Fahrenheit 212. Maulik was ready to make an offer to an applicant, but after checking out the man’s LinkedIn profile he decided the applicant was not a team player. “He took credit for everything short of splitting the atom,” Maulik said. “Everything was ‘I did this.’ He seemed like a lone wolf. He did everything himself.” Maulik recalls another seemingly good applicant who used his Twitter account “to disparage just about every new innovation in the marketplace.” Maulik concluded the appli- cant “was much more comfortable as the critic than the col- laborative creator.”4 This candidate was not hired either. Recommended Tips The following suggestions can help you manage the impression you are projecting based on the information you post on social media. What’s Ahead in This Chapter We want to help you enhance your understanding of the perceptual process so you won’t fall victim to common perceptual errors—yours or other people’s. This chapter will show you, for instance, how per- ception influences the way managers manage diversity. Diversity should matter to you because the way a business deals with diversity affects the way you are perceived as an individual. Diversity matters to your organization too, because it allows you to take advantage of the fullest range of human skill and talent. We also discuss barriers and challenges to managing diversity, and the practices organiza- tions use to overcome them. Panther Media GmbH/Alamy Stock Photo Organizational Behavior: A Practical, Problem-Solving Approach 123 Imagine you are driving on a winding mountain road at dusk and suddenly see something in the road. Is it an animal, a rock, or a person? Should you stop or just maneuver around it? Suppose you’re in a team meeting and one of your teammates makes a negative state- ment about your work. Is the person being political or just having a bad day? Your mind is trying to quickly answer these questions before you respond. Perception is key to resolving the above questions.  Perception  is a cognitive pro- cess that enables us to interpret and understand our surroundings. Recognition of objects is one of this process’s major functions. But because organizational behavior’s (OB’s) principal focus is on people, our discussion will emphasize social perception rather than object perception. Perception is important to OB because it affects our actions and decisions. It is based on our perception of reality, not on reality itself. Our exploration of this important process begins with a discussion of social perception and the four stages of processing informa- tion. We then consider a model of person perception, which provides a practical frame- work for understanding how we form perceptions of others. Finally we consider the managerial implications of person perception. Stages of Social Perception You can learn to avoid making perceptual errors by understanding the process that guides perception. As shown in Figure 4.2, there are four stages of social perception: • Stage 1: Selective attention/comprehension • Stage 2: Encoding and simplification • Stage 3: Storage and retention • Stage 4: Retrieval and response Describe how you form perceptions of others. LO 4-1 THE BIGGER PICTURE Understanding how you process information will help you see how perception affects a vari- ety of important processes and outcomes within the Organizing Framework for Understand- ing and Applying OB. It can also assist in managing the perceptions people form about you. 4.1 THE PERCEPTION PROCESS FIGURE 4.2 Social Perception: A Social Information Processing Model McGraw-Hill Global Education Holdings, LLC C Judgments and decisions Interpretation and categorization• People • Events • Objects Memory A B C D E F A C F Stage 2 Encoding and Simplification Stage 3 Storage and Retention Stage 1 Selective Attention/ Comprehension Stage 4 Retrieval and Response Competing environmental stimuli Social Perception and Managing Diversity CHAPTER 4 Organizational Behavior: A Practical, Problem-Solving Approach 124 PART 1 Individual Behavior The first three stages describe how specific social information is observed and stored in memory. The fourth and final stage, retrieval and response, involves turning mental repre- sentations into real-world judgments and decisions. Let’s look at the four stages of social perception by following a simple example. Suppose you were thinking of taking a personal finance course. Three professors teach the same course, using different types of instruction and testing procedures. Through personal experience, you now prefer good professors who rely on the case method of instruction and essay tests. According to social perception theory, you would likely arrive at a decision regarding which course to take based on the instructor, following the steps outlined in the following sections. Stage 1: Selective Attention/Comprehension People are constantly bombarded by physical and social stimuli. To avoid being overwhelmed, they selectively perceive sub- sets of environmental stimuli. This is where attention plays a role. Attention is the process of becoming consciously aware of someone or something. Research has shown that people tend to pay attention to salient stimuli—that is, something that stands out from its context. For example, a 250-pound man would certainly be salient in a women’s aerobics class but not at a meeting of NFL players. One’s needs and goals often dictate which stimuli are salient. In our personal finance example, you would begin your search for the “right” professor by asking friends who have taken classes from the three available professors. You might also interview the professors who teach the course to gather additional information. In Figure 4.2, all the information you obtain shows as competing environmental stimuli labeled A through F. You interpret and categorize your notes. Stage 2: Encoding and Simplification Our memory does not store observed informa- tion in its original form; encoding is required. Our brains interpret or translate raw informa- tion into mental representations. To accomplish this, individuals assign pieces of information to cognitive categories,  groups of objects that are considered equivalent. For example, categories are generally designated by names—for example, dog, animal.6 In social information processing theory, a particular category builds on a schema. A schema  represents a person’s mental picture or summary of a particular event or type of stimulus. For example, picture a sports car. Does the picture show a small vehicle with two doors? Is it red? If you answered yes, you would tend to classify all small, two-door, red vehicles as sports cars because this type of car possesses characteristics consistent with your sports car schema. We interpret and evaluate people, events, and objects by comparing their characteristics with information contained in schemata (the plural form of schema). Relying on encoding helps us to simplify what might be a bewildering range of inputs. Encoding and schemata make the world more manageable. In our personal finance exam- ple, let’s say you simplify by focusing on categories most salient to you: the method of instruction, testing procedures, and past grade distributions. Figure 4.2 shows these three salient pieces of information as lines A, C, and F. Having collected relevant information about the three professors and their approaches, you compare this information with other details contained in schemata. This comparison leads you to form an impression of what each professor’s course might be like. In turn, the relevant information (lines A, C, and F in Figure 4.2) are passed along to the third stage of the process. Stage 3: Storage and Retention Long-term memory is like an apartment complex consisting of separate units connected to common areas. Sometimes different people in each apartment will interact. Long-term memory similarly consists of separate but related compartments (or wings), one each for events, semantic materials, and people.7 • Event memory: This compartment includes categories with information about both specific events (relying on unique details) and general events (relying on schemata). These memories describe sequences of events in familiar situations: going to a res- taurant, going on a job interview, going to a movie, etc. • Semantic memory: This refers to general knowledge about the world, as a kind of mental dictionary of concepts. Each concept includes a definition (e.g., a good leader) and associated traits (outgoing), emotional states (happy), physical characteristics Organizational Behavior: A Practical, Problem-Solving Approach 125Social Perception and Managing Diversity CHAPTER 4 (short), and behaviors (works hard). These concepts are stored as schemata and are often subject to cultural differences. • Person memory: Categories within this compartment supply information about a sin- gle individual (your professor) or groups of people (professors). You are more likely to remember information about a person, event, or advertisement if it contains charac- teristics that are similar to something stored in the compartments of memory. As time draws near for you to decide which personal finance professor to choose, your schemata of them are stored in the three categories of long-term memory and are available for immediate retrieval and comparison. Stage 4: Retrieval and Response People retrieve information from memory when they make judgments and decisions, and these ultimately come about in one of two ways: (1) we draw on, interpret, and integrate categorial information stored in long-term memory or (2) we retrieve a summary judgment that has already been made. On course registration day, you have to choose which professor to take for personal finance. After retrieving your schemata-based impressions from memory, you select a good professor who uses the case method and gives essay tests (line C in Figure 4.2). In con- trast, you may choose your preferred professor by simply recalling the decision you made two weeks ago. A Model of Person Perception Figure 4.1 showed that perception is an important process in the Organizing Frame- work for Understanding and Applying OB because it affects our actions and decisions. Consider dieting. Recently Weight Watchers International stopped using the word diet in its advertising because of the word’s negative perception. In fact, the company slimmed down its own name to WW and is adding the word wellness to its brand. Company presi- dent and CEO Mindy Grossman noted that “We are becoming the world’s partner in well- ness.”8 Weight Watchers clearly is trying to use the perception process to increase sales. Perception is influenced by three key components: the characteristics of the per- ceiver, of the target—the person or group being observed—and of the situation (see Figure 4.3).9 Let’s take a closer look at how these components work. Characteristics of the Perceiver Figure 4.3 shows six key perceiver characteristics that affect our perceptions of others.10 As you read, consider how they might have influ- enced your perceptions in the past. • Direction of gaze. Gaze is the first step in the perception process because it focuses your attention and tells the brain what you think is important in the immediate environ- ment. When scanning people, we also tend to pay attention to others who are gazing at us. We usually remember people when we make direct eye contact with them. • Needs and goals. We are more likely to perceive whatever is related to our goals and needs. For example, we perceive examples of food if we are hungry. If we are looking for a friend at a party, we scan the room for familiar faces and fail to perceive strangers. • Experience with target. Our perception of a target is influenced by our past experience with him or her. You might perceive someone’s firm handshake negatively, for instance, if you know this person has attempted to exert power and control over you in the past. The same handshake is positive if you remember the target as a friendly, caring person. Music artist DJ Khaled is one of many celebrities who endorse Weight Watchers and its wellness approach to a healthy lifestyle. Do you think more people will join WW’s programs because of celebrity endorsements? Lu Chau/AP Images Organizational Behavior: A Practical, Problem-Solving Approach 126 PART 1 Individual Behavior • Category-based knowledge. Category-based knowledge consists of perceptions, including stereotypes, that we have stored in memory about various categories of people (professors, singers, artists, police, politicians, and so on). We use this infor- mation to interpret what we see and hear. For instance, if you believe professors in general are intelligent, you are more likely to perceive that those teaching your cur- rent courses are intelligent. If your memory tells you that people who lie cannot be trusted, you are likely to perceive a politician as untrustworthy who is caught in a lie. We discuss stereotypes in the next section. • Gender and emotional status. Women recognize emotions more accurately than men, and both men and women are more likely to recognize a target’s emotions when they are consistent with their own. Experiencing negative emotions such as anger and frustration is likely to make your perceptions more negative. The opposite is true for positive emotions such as optimism and love. • Cognitive load. Cognitive load represents the amount of activity going on in your brain. If you are tired and distracted after working a long day, your perceptions are more likely to be distorted and susceptible to stereotypical judgments. Characteristics of the Target Figure 4.3 identifies five important characteristics of the target that affect our person perception.11 The characteristics are: • Direction of gaze. We form different perceptions of people based on whether they are looking at us while conversing. Direct eye contact suggests interest, whereas eyes darting across a room suggests the opposite. • Facial features and body shape. We often use faces as markers for gender, race, and age, but face and body characteristics can lead us to fall back on cultural stereotypes. Characteristics of the perceiver • Direction of gaze • Needs and goals • Experience with target • Category based knowledge • Gender and emotional status • Cognitive load Characteristics of the target • Direction of gaze • Facial and body shape characteristics • Nonverbal cues • Appearance or dress • Physical attractiveness Characteristics of the situation • Context of interaction • Culture and race consistency between perceiver and target Interactions between perceivers and targets. Person Perception FIGURE 4.3 A Model of Person Perception McGraw-Hill Global Education Holdings, LLC Organizational Behavior: A Practical, Problem-Solving Approach 127Social Perception and Managing Diversity CHAPTER 4 For example, height has been associated with perceptions of prosperity—high income—and occupational success. Excess weight can be stereotypically associated with negative traits such as laziness, incompetence, and lack of discipline. • Nonverbal cues. Communication experts tell us that nonverbal actions are highly influential in perception. Gestures, touching, facial expressions, eye contact, and body movements like slouching all convey messages. You might perceive that some- one is defensive if you observe folded arms, a facial scowl, or crossed legs. In many cultures appropriate touching conveys an impression of warmth and caring. • Appearance or dress. We all are susceptible to being influenced by appearance. We may conclude someone who shows up for work with tattoos or other body art may not be serious about doing a good job or may wonder how the person even got hired. However, research doesn’t support this perception. In a recent survey of more than 2,000 individuals, those with tattoos were no less likely to be employed than their uninked counterparts and average earnings were the same for both groups.12 • Physical attractiveness. While attractiveness is culturally determined, the beauty-is-good stereotype leads us to perceive attractive people positively. High attractiveness has been associated with better job opportunities, higher performance ratings, and the potential for increased earnings. One team of researchers concluded, “The effects of facial attrac- tiveness are robust and . . . attractiveness is a significant advantage for both children and adults in almost every domain of judgment, treatment, and behavior.”13 Characteristics of the Situation Figure 4.3 shows two key situational characteris- tics that affect perception: the context of the interaction, and the culture and race consis- tency between perceivers and targets. • Context of interaction. Perceptions are affected by the social context in which the inter- action occurs. For example, your parent will likely perceive your eating food from the kitchen when you visit home differently than will a coworker whose food you take from the office refrigerator. Texting someone while eating dinner with friends is perceived differently than texting during a business meeting. Context matters! • Culture and race consistency. We more accurately recognize emotions displayed by people from our own culture or from other familiar cultures. We also better under- stand and remember facial expressions displayed by people from our own race. For instance, both authors do consulting around the world, and we find it harder to accu- rately perceive group dynamics in foreign than in U.S. companies. Angelo recalls telling a joke to a group of Finnish managers. No one laughed or made any facial expressions, and he thought the joke had bombed until someone told him at a break that he was really funny. What a perceptual surprise! The Applying OB box provides some tips on how to develop your own cultural awareness. Applying OB Our cultural backgrounds and expectations are just some of many factors that affect our own perceptions of a person or situation. For example, “Americans see an apology as an admission of wrongdoing, whereas Japanese see it as an expression of eagerness to repair a damaged relationship, with no culpability nec- essarily implied.”14 To build your own cultural aware- ness and enable you to form more accurate perceptions of unfamiliar people and situations, con- sider the following:15 1. Know what you don’t know. Begin by acknowl- edging that you may not have good or sufficient information about another person’s culture, and that there are probably gaps in your knowledge that you can fill. Developing Cultural Awareness to Enhance Perception CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 128 PART 1 Individual Behavior Managerial Implications of Person Perception Person perception is the window through which we all observe, interpret, and prepare our responses to people and events. It affects a wide variety of managerial activities, organiza- tional processes, and quality-of-life issues. We’ll touch on hiring, performance appraisal, and leadership. Hiring Interviewers make hiring decisions based on their impression of how an applicant fits the perceived requirements of a job. Unfortunately, many of these decisions are made on the basis of implicit cognition. Implicit cognition  represents any thoughts or beliefs that are automati- cally activated from memory without our conscious awareness. The existence of implicit cognition, or implicit bias, leads people to make biased decisions without realizing they are doing so.16 A recent study of letters of recommenda- tion for academic job positions, for instance, demonstrated that people recommend female versus male candidates in different ways, probably based on gender role stereotypes. The letters described female applicants as caring, friendly, and nice, while male applicants were strong, decisive, and outstanding.17 Experts recommend three solutions for reducing the biasing effect of implicit cognition. First, managers can be trained to understand and recognize this type of hidden bias. Second, they can use structured rather than unstructured interviews. Inter- viewers ask the same sequence of questions to all applicants in a structured interview, which leads to more reliable evaluations. Finally, managers can rely on evaluations from multiple inter- viewers rather than just one or two people. More companies now are using virtual interviews as a tool for reducing problems asso- ciated with implicit cognition (see the OB in Action box). Performance Appraisal Faulty perceptions about perfor- mance can lead to inaccurate performance appraisals, which can erode morale and thwart some women from seeking for- mal leadership roles in an organization. Consider the results of a recent study of how former CEOs influence the success of their female successors. 2. Try not to judge prematurely. Once you’ve recog- nized that you may have some cultural biases, withhold judgment of others whose motivations, words, or actions you may not immediately under- stand, and of situations that are new to you. 3. Do some homework. Even if your organization doesn’t provide formal diversity training, there are almost unlimited resources in libraries and online for finding information about other cultures on your own. Do some research and consider using your company’s suggestion box or other feedback framework to propose diversity training if there isn’t any. 4. Rely on good manners. Always err on the side of cordiality and respect and give others the benefit of the doubt whenever appropriate. Use informal- ity with care; it is not valued equally in all cultures, particularly in business relationships. 5. Reach out to others as a way to learn. Get to know coworkers from other cultures than your own. Invite them to share coffee or a meal, listen carefully, and be ready to share information about what you have in common as well as how you may differ. Give these new relationships time to develop. 6. Build diverse teams. Include different kinds of people on any team you are asked to build and make an active effort to work with them on teams to which you are assigned. Do you think these diners have any implicit cognitions when it comes to choosing their menu selections? Do you think their choice of rosé wine activates a preference for a certain type of entrée? Image Source Organizational Behavior: A Practical, Problem-Solving Approach 129Social Perception and Managing Diversity CHAPTER 4 The research looked at all of the CEO successions involving female successors over a 20-year period across the largest companies in the United States. Findings suggest that women CEOs were successful when their mostly male predecessors promoted gender- neutral work environments and functioned as “gatekeepers,” meaning the male CEOs were closely involved in hiring, selecting, and socializing the women within the company’s orga- nizational culture, and providing them with ongoing feedback about their performance— both formally and informally.18 Perceptual biases in performance appraisals can be reduced by the use of more objective measures of performance. While this is a good idea, it is hard to implement for jobs that require interdependent work, mental work, or work that does not produce objective outcomes. Companies can also reduce bias by providing managers a mechanism for accurately recall- ing employee behavior, such as a performance diary. Finally, it would be useful to train manag- ers about perceptual biases and about how they can avoid them in performance evaluations.19 What do Doctors Without Borders, Yelp, Trivago, ExxonMobil, Porsche Consulting, and ClubMed have in common? According to WebEmployed.com, these organizations and others use Skype to conduct vir- tual interviews with qualified job candidates around the world.20 Among the benefits are speed and cost savings, since the time and expense to get candi- date and interviewer to the same place are elimi- nated. Not only can hiring companies interview more candidates; multiple interviewers can participate, yielding more and better information for selecting a new hire. Job candidates benefit, too. They don’t need to take time off for travel to be considered for a job, and they can widen the pool of organizations to which they apply. In a variation on virtual interviewing that demon- strates another of its advantages, Matt Mullenweg, CEO of Automattic (the parent company of Word- Press), tries to eliminate hidden bias by using text- only Skype and messaging for the final stage of interviewing. “I don’t know the gender or ethnicity of anyone I interview,” he says. “I see only the words on the screen. It’s as close to a double-blind process as you can get. I’m looking mainly for passion and cul- tural fit. Of the people who make it to the final inter- view, 95 percent get a job offer—a testament to the effectiveness of our approach.”21 Even before the interview, some companies are using virtual technologies in recruiting. Jet.com, the New Jersey-based shopping site owned by Walmart, has created a virtual reality simulation to let potential job candidates try out its workplace culture wher- ever they happen to be. They can observe a meeting with the CEO, sample the company’s happy hour, and even play games. The company hopes this opportunity will allow it to attract the best candidates to compete against its main rival, Amazon.com.22 YOUR THOUGHTS? 1. The above discussion focuses on the positive aspects of virtual interviews. Are there negative aspects of this strategy? If so, what are they? 2. How would you prepare for a virtual interview? 3. If you were relying on virtual interviews to select job candidates, what would you look for? Virtual Interviews Can Improve the Accuracy of Job Interviews and Reduce Costs OB in Action Leadership Research demonstrates that employees’ evaluations of leader effectiveness are influenced strongly by their categorical knowledge of what constitutes good and poor leaders. For example, a team of researchers found that the following behaviors are repre- sentative of effective leadership: 1. Assigning specific tasks to group members. 2. Telling others they have done well. 3. Setting specific goals for the group. 4. Letting other group members make decisions. 5. Trying to get the group to work as a team. 6. Maintaining definite standards of performance.23 Organizational Behavior: A Practical, Problem-Solving Approach 130 PART 1 Individual Behavior 4.2 STEREOTYPES “A stereotype  is an individual’s set of beliefs about the characteristics or attributes of a group.”24 We need to recognize how stereotypes affect our perception because we use them without intending to or even being consciously aware that we are.25 Stereotypes are not always negative. For example, the belief that engineers are good at math is certainly part of a stereotype and is positive. Stereotypes also may or may not be accurate. Engineers may in fact be better at math than the general population. Unfortunately, stereotypes can lead to poor decisions. Consider people diagnosed with cancer, about 38 percent of men and women living in the United States.26 A recent study showed that managers continue to make discriminatory decisions about employees who are cancer patients.27 All told, stereotypes can create barriers for women, older individuals, people of color, and people with disabilities, all while undermining loyalty and job satisfac- tion. Let’s look at examples. Gender. A summary of research revealed that: • Men were preferred for male-dominated jobs (e.g., firefighters), but there was no preference for either gender in female-dominated jobs (e.g., nurse). • Female entrepreneurs looking for funding for their start-ups have a more difficult time than their male counterparts in obtaining venture capital due to gender bias on the part of investors. • Women are more likely than men to hire other women. • Women of color are more negatively affected by sex-role stereotypes than white women or men in general.28 Race. Studies of race-based stereotypes demonstrated that people of color experienced more perceived discrimination and less psychological support than whites.29 Perceived racial discrimination was also associated with more negative work attitudes, physical health, psychological health, and organizational citizenship behavior.30 Age. Another example of an inaccurate stereotype is the belief that older workers are less motivated, more resistant to change, less trusting, less healthy, and more likely to have problems with work–life balance. A recent study refuted all these negative beliefs about age.31 Stereotype Formation and Maintenance We build stereotypes through a four-step process: 1. Categorization. We categorize people into groups according to criteria (such as gen- der, age, race, and occupation). 2. Inferences. Next, we infer that all people within a particular category possess the same traits or characteristics: women are nurturing, older people have more job- related acci- dents, African Americans are good athletes. THE BIGGER PICTURE Don’t say you don’t use stereotypes; they help us process information faster and thus are part of the way we humans think. But stereotypes can also lead to bad decisions and undermine personal relationships. Being aware of them can save you from such pitfalls. Discuss how awareness of stereotypes helps you make better decisions. LO 4-2 Organizational Behavior: A Practical, Problem-Solving Approach 131Social Perception and Managing Diversity CHAPTER 4 3. Expectations. We form expectations of others and interpret their behavior according to our stereotypes. 4. Maintenance. We maintain stereotypes by: • Overestimating the frequency of stereotypic behaviors exhibited by others. • Incorrectly explaining expected and unexpected behaviors. • Differentiating minority individuals from ourselves. Research shows that it takes accurate information and motivation to reduce the use of stereotypes.32 Managerial Challenges and Recommendations The key managerial challenge is to reduce the extent to which stereotypes influence deci- sion making and interpersonal processes throughout the organization. We suggest three ways that this can be achieved. 1. Managers should educate people about stereotypes and how they can influence our behavior and decision making. Many people may not understand how stereotypes unconsciously affect their perception. For example, in a recent LinkedIn report on gender insights, data revealed that when recruiters are searching for job candidates and they see a list of men and women, they tend to open the men’s LinkedIn profiles more frequently than the women’s profiles. To combat the initial selection bias, more companies are implementing anonymous hiring and removing key identifiers (for example, names and photos) from candidates’ applications.33 2. Managers should create opportunities for diverse employees to meet and work together in cooperative groups of equal status. Social scientists believe positive interpersonal contact among mixed groups is the best way to reduce stereotypes because it provides people with more accurate data about the characteristics of others. 3. Managers should encourage all employees to increase their awareness of stereotypes. Awareness helps reduce the application of stereotypes when making decisions and interacting with others. What do you notice in this photo? The woman working from a wheelchair? Do you think some people have negative stereotypes about those with disabilities? Research shows that many people do. Pixtal/age fotostock Organizational Behavior: A Practical, Problem-Solving Approach 132 PART 1 Individual Behavior 4.3 CAUSAL ATTRIBUTIONS Attribution theory is based on a simple premise: Rightly or wrongly, people infer causes for their own and others’ behavior. Formally defined, causal attributions  are sus- pected or inferred causes of behavior. Managers need to understand how people formulate these attributions because they profoundly affect organizational behavior. Consider Table 4.1, in which the manager’s understanding of observed behavior leads to very different actions. Kelley’s Model of Attribution Current models of attribution build on the pioneering work of the late Fritz Heider. Heider, the founder of attribution theory, proposed that behavior can be attrib- uted either to internal factors  within a person   (such as ability) or to external factors within the environment (such as a difficult task). Following Heider’s work, Harold Kelley attempted to pinpoint some specific antecedents of internal and external attributions. Kelley hypothesized that people make causal attributions by observing three dimensions of behavior: consensus, distinctiveness, and consis- tency.34 These dimensions vary independently, forming various combinations and leading to differing attributions. • Consensus  compares an individual’s behavior with that of his or her peers. There is high consensus when someone acts like the rest of the group and low con- sensus when he or she acts differently. • Distinctiveness  compares a person’s behavior on one task with his or her behavior on other tasks. High distinctiveness means the individual has performed the task in a significantly different manner than he or she has performed other tasks. • Consistency  judges whether the individual’s performance on a given task is consistent over time. Low consistency is undesirable for obvious reasons and implies that a person is unable to perform a certain task at some standard level. High consistency implies that a person performs a certain task the same way, with little or no variation over time. THE BIGGER PICTURE Consciously or unconsciously, you use causal attributions when you seek to explain the causes of behavior. So do most managers. You can avoid the fundamental attribution bias and self-serving bias if you learn how they distort our interpretation of observed behavior. Explain how causal attributions help managers interpret employee performance. LO 4-3 TABLE 4.1 The Link between Attributions and Managerial Actions OBSERVED BEHAVIOR MANAGER’S ATTRIBUTION MANAGERIAL ACTION Employee fails to meet minimum standards Lack of effort Reprimand Employee fails to meet minimum standards Lack of ability Training Organizational Behavior: A Practical, Problem-Solving Approach 133Social Perception and Managing Diversity CHAPTER 4 Figure 4.4 provides sample charts of these dimensions in both low and high incidence. How do these three dimensions of behavior lead to specific attributions? Kelley theo- rized that people attribute behavior to either internal causes (personal factors) or external causes (environmental factors) depending on the way they rank consensus, distinctiveness, and consistency as shown in Table 4.2: EXAMPLE You would make an internal attribution to Mary if she displayed extraor- dinary performance relative to her peers and this level of performance was typical for Mary over the past year. In contrast, you would arrive at an external attribution if Mary’s performance was similar to her peers, but the performance on the task you observed was lower than usual for Mary over the past year. While other combinations are possible, the two options shown below have been most frequently studied.35 Note: For another view of Kelley’s theory, return to Figure 4.4. In the figure, we provided charts that, taken together, indicate internal attributions on the left- hand side and external attributions on the right-hand side. FIGURE 4.4 Sample Charts of Consensus, Distinctiveness, and Consistency in Performance SOURCE: Brown, Karen A. “Explaining Group Poor Performance: An Attributional Analysis.” Academy of Management Review 9, no. 1 (January 1984): 54–63. https://DOI: 10.2307/258232. In the Low Consensus chart, Person C is not in consensus. In the High Consensus chart, all persons are in consensus. In the Low Distinctiveness chart, all tasks are similar. In the High Distinctiveness chart, Task 4 is especially distinct. For reasons we’ll share soon, we switched order of high and low. The High Consistency chart shows no change over time. The Low Consistency chart shows lack of consistency. Conse nsus (amon g peo ple) Distin ctiven ess (acros s task s) Consi stenc y (over time) Low A EB C D A EB C D 1 52 3 4 1 52 3 4 High Low High High Low TABLE 4.2 Formation of Internal and External Attributions ATTRIBUTION CONSENSUS (PEOPLE) DISTINCTIVENESS (TASKS) CONSISTENCY (TIME) Internal Low Low High External High High Low Organizational Behavior: A Practical, Problem-Solving Approach 134 PART 1 Individual Behavior Attributional Tendencies Researchers have uncovered two attributional tendencies that distort our interpretation of observed behavior—fundamental attribution bias and self-serving bias. Fundamental Attribution Bias The fundamental attribution bias  reflects our tendency to attribute another person’s behavior to his or her personal characteris- tics, rather than to situation factors. This bias causes perceivers to ignore important environmental factors (again refer to the Organizing Framework), which often signifi- cantly affect behavior. Such bias leads to inaccurate assessments of performance, which in turn fosters inappropriate responses to poor performance. Self-Serving Bias The self-serving bias  represents our tendency to take more personal responsibility for success than for failure. The self-serving bias suggests indi- viduals will attribute their success to controllable internal factors (high ability or hard work) and their failures to uncontrollable external factors (bad luck or lack of sleep). For example, let’s say you ace a test in your most difficult course. The self-serving bias suggests your success occurred because you studied hard for the exam (internal factor). On the other hand, let’s say you failed the test. You might believe you did poorly on the exam because the teacher didn’t explain the subject correctly or you had to work your shift at the local sub shop the night before the test.36 Managerial Applications and Implications Attribution models can explain how managers handle poorly performing employees. One study revealed that managers gave employees more immediate, frequent, and negative feed- back when they attributed their performance to low effort. Another indicates that manag- ers tended to transfer employees whose poor performance they attributed to a lack of ability. These same managers also decided to take no immediate action when poor perfor- mance was attributed to external factors beyond an individual’s control.37 These observations offer useful lessons for all of us: • We tend to disproportionately attribute behavior to internal causes. This bias can result in inaccurate evaluations of performance, leading to reduced employee moti- vation. The Organizing Framework for Understanding and Applying OB offers a simple solution for overcoming this tendency. You must remind yourself that behav- ior and performance are functions of both person and situation factors. • Other attributional biases may lead managers to take inappropriate actions. Such actions could include promotions, transfers, layoffs, and so forth. Inappropriate responses can dampen motivation and performance. • An employee’s attributions for his or her own performance have dramatic effects on motivation, performance, and personal attitudes such as self-esteem. For instance, people tend to give up, lower their expectations of future success, and experience decreased self-esteem when they attribute failure to lack of ability. Employees are more likely to display high performance and job satisfaction when they attribute success to internal factors such as ability and effort.38 Organizational Behavior: A Practical, Problem-Solving Approach 135Social Perception and Managing Diversity CHAPTER 4 Do you have any preconceived notions about diversity that are worth considering? Let’s take a reality check: • Assumption: Gender diversity on boards of directors does not affect firm perfor- mance. Wrong, says a team of researchers who aggregated results from 140 research studies. Findings showed that firms were more profitable when women were mem- bers of the board of directors. As of 2018, there were only 12 Fortune 500 compa- nies with zero women on their boards, and 11 of the 12 firms performed poorly over the past five years when compared to other Fortune 500 companies (the other firm is privately held).39 • Assumption: Organizations are losing Baby Boomers to retirement—can Millenni- als fill the gap? Yes, in terms of sheer numbers, but no, in terms of skills. Accord- ing to Pew Research data, of the 75 million strong Baby Boom generation, 44 million are still working, with the youngest in their early 50s. Millennials con- tribute nearly 53 million workers to the labor force but because of their ages, they don’t necessarily have the job experience or skills yet to fill the roles of the retiring Boomers.40 • Assumption: Whites will constitute the majority among U.S. racial groups through 2060. No, according to the U.S. Census Bureau. Today whites represent 61 percent of the population, but that will drop below 45 percent by 2060.41 The United States is becoming more diverse in its gender, racial, educational, and age makeup. For example, there are now more working parents, more nonwhites, and more older people, and the consequences are not always what you might expect. Demographics  are the statistical measurements of populations and their quali- ties (such as age, race, gender, or income) over time. The study of demographics helps us better appreciate diversity and helps managers develop human resource policies and practices that attract, retain, and develop qualified employees. In the remainder of this chapter we will further your understanding of diversity and its mana- gerial challenges. Layers of Diversity Diversity  represents the multitude of individual differences and similarities that exist among people, making it an input in the Organizing Framework for Understanding and Applying OB. As you will learn, however, managing diversity also affects a variety of processes and outcomes within the Organizing Framework. Moreover, diversity pertains to everybody. It is not just an issue of age, race, or gender; of being heterosexual, gay, or lesbian; or of being Catholic, Jewish, Protestant, or Muslim. Diversity pertains to the host of individual differences that make each of us unique and different from all others. Describe the four layers of diversity and how they help organizations manage diversity effectively. LO 4-4 THE BIGGER PICTURE Like seashells on a beach, people come in a variety of shapes, sizes, and colors. All of us need to be aware of the different layers of diversity and to know the difference between affirmative action and diversity management. 4.4 DEFINING AND MANAGING DIVERSITY Organizational Behavior: A Practical, Problem-Solving Approach 136 PART 1 Individual Behavior Lee Gardenswartz and Anita Rowe, a team of diversity experts, identified four layers of diversity to help distinguish the important ways in which people differ (see Figure 4.5). Taken together, these layers define our personal identities and influence the way each of us sees the world. Figure 4.5 shows that personality is at the center of the diversity wheel because it rep- resents a stable set of characteristics responsible for a person’s identity. These are the dimensions of personality discussed in Chapter 3. The next layer of diversity is composed of internal dimensions, also referred to as surface-level dimensions of diversity. “Surface-level characteristics  are those that are quickly apparent to interactants, such as race, gender, and age.”42 Because we view these characteristics of others as unchangeable, they strongly influence our attitudes, expectations, and assumptions about them, which, in turn, influence our behavior. Take the experience of an African American middle manager sitting by the pool while vacationing at a resort. As she recalls, “A large 50-ish white male approached me and demanded that I get him extra towels. I said, ‘Excuse me?’ He then said, ‘Oh, you don’t work here,’ with no shred of embarrassment or apology in his voice.”43 Stereotypes regarding one or more of the internal dimensions of diversity most likely influenced this man’s behavior. FIGURE 4.5 The Four Layers of Diversity SOURCE: Gardenswartz, Lee, and Anita Rowe. Diverse Teams at Work: Capitalizing on the Power of Diversity. Virginia: Society For Human Resource Management, 2003. Inter nal dimensions Extern al dimensions Functional level/ classification Orga nizational dimensions Geographic location Personality Race Marital status Manage- ment status Union a�liation Work location Seniority Division/ department/ unit/ group Work content/ field Parental status Appear- ance Work experience Gender Income Personal habits Sexual orientation Religion Recreation- al habits Ethnicity Physical ability Educational background Age Organizational Behavior: A Practical, Problem-Solving Approach 137Social Perception and Managing Diversity CHAPTER 4 Figure 4.5 shows that the next layer of diversity consists of external influences. These are individual differences over which we have more control, such as where we live, our religious affiliation, our marital and parental status, and our work experience. These dimensions also exert a significant influence on our perceptions, behavior, and attitudes. The final layer of diversity is organizational dimensions such as seniority, job title and function, and work location. Integrating these last two layers yields deep-level characteris- tics of diversity. “Deep-level characteristics  are those that take time to emerge in interactions, such as attitudes, opinions, and values.”44 These characteristics are defi- nitely under our control. Affirmative Action vs. Diversity Management Affirmative action and diversity management are driven by very different values and goals. This section highlights these differences. Affirmative Action Affirmative action is not a law in and of itself. It is an out- growth of equal employment opportunity (EEO) legislation. The goal of this legisla- tion is to outlaw discrimination and to encourage organizations to proactively prevent discrimination. Discrimination  occurs when employment decisions about an individual are based on reasons not associated with performance or related to the job. For example, organizations cannot legally discriminate on the basis of race, color, religion, national origin, sex, age, physical and mental disabilities, and preg- nancy. Affirmative action  is an intervention aimed at giving management a chance to correct an imbalance, injustice, mistake, or outright discrimination that occurred in the past. Does the number of white males stand out in this picture of the U.S. Congress? Criticized for its lack of diversity, the U.S. Congress recently added over 120 women to its ranks. Saul Loeb/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 138 PART 1 Individual Behavior Affirmative action • Can refer to both voluntary and mandatory programs. • Does not legitimize quotas. Quotas are illegal and can be imposed only by judges who conclude that a company has engaged in discriminatory practices. • Does not require companies to hire unqualified people. • Has created tremendous opportunities for women and minorities. • Does not foster the type of thinking needed to manage diversity effectively. Is the last point surprising? Research uncovered the following tendencies of affirmative action plans. They are 1. Perceived more negatively by white males than by women and minorities, because white males see the plans as working against their interests. 2. Viewed more positively by people who are liberals and Democrats than by conservatives and Repub- licans. 3. Not supported by people who hold racist or sexist attitudes.45 4. Found to negatively affect the women and minori- ties expected to benefit from them. Supposedly hired on the basis of affirmative action, these groups feel negatively stigmatized as unqualified or incompetent.46 Recently California became the first state in the nation to legally require women on boards for companies based in the state. Although seen as a conscious effort to even out the gender inequity in corporate boardrooms, some female leaders say they worry the new regulation could result in women being named to boards to comply with the regulation rather than to bring new skills and business experience to company boards. According to Bonnie Gwin, co-managing partner of executive search firm Heidrick & Struggles, “We’ve got to fix it [the gender imbalance], but I’m personally not a huge fan of quotas.”47 Managing Diversity Managing diversity  enables people to perform to their maximum potential. Diversity management focuses on changing an organization’s cul- ture and infrastructure such that people work to the highest productivity possible. Ann Morrison, a diversity expert, attempted to identify the types of initiatives 16 companies used to successfully manage diversity. Her results found three key strategies at work: educa- tion, enforcement, and exposure. She describes them as follows: • The educational component. Education “has two thrusts: one is to prepare nontradi- tional managers for increasingly responsible posts, and the other is to help tradi- tional managers overcome their prejudice in thinking about and interacting with people who are of a different sex or ethnicity.” • The enforcement component. Enforcement “puts teeth in diversity goals and encour- ages behavior change.” • The exposure component. Exposing people to others with different backgrounds and characteristics “adds a more personal approach to diversity by helping managers get to know and respect others who are different.”48 In summary, both consultants and academics believe organizations should strive to manage diversity rather than being forced to use affirmative action. In an effort to encourage diversity and combat gender inequity, former California governor Jerry Brown signed legislation in 2018 to require companies based in the state to add women to their board of directors. Jae C. Hong/AP Images Organizational Behavior: A Practical, Problem-Solving Approach 139Social Perception and Managing Diversity CHAPTER 4 The growing diversity in the United States is not a business initiative; it is a reality. Businesses can consciously choose to manage diversity or get caught short by the demo- graphic changes facing the country. Business Rationale The rationale for managing diversity is more than the fact that it’s legally, socially, or mor- ally desirable. Quite simply, it’s good business. The OB in Action box illustrates how com- panies can gain competitive advantage by using product design to reach a diverse market. Discuss the business rationale for managing diversity. LO 4-5 THE BIGGER PICTURE After reviewing the business case for managing diversity, we also look at demographic changes in the U.S. workforce that make the need to manage diversity all the more urgent. These demographic changes have major implications for OB. 4.5 BUILDING THE BUSINESS CASE FOR MANAGING DIVERSITY Can building diversity into your organization’s pur- pose be good for business? More companies today believe it is. Product designers and marketers are looking for ways to make products and services “inclusive” so they can serve a broader market, or “universal” so they can reach just about everyone, rather than limiting their use to a narrower market such as the able-bodied. For example, voice- activated computer technology such as Google Voice makes social media more accessible to peo- ple with limited dexterity for typing, and those with limited or no vision. Alzheimer’s patients might someday rely on a device such as Amazon’s artifi- cial intelligence–assisted DeepLens camera, cur- rently in development, to recognize and interact with family and friends they no longer remember. Because this “smart camera” relies on universal design principles, however, anyone else can use it as well. People who communicate via sign lan- guage can confidently rely on the superior screen resolution of Apple’s Facetime video chat feature, as other sighted users do too.49 The idea behind inclusive design is to begin with outliers, such as people with disabilities or other limi- tations, and design for them first, ideally resulting in a product or service that is ultimately better for every- one. As Kat Holmes, a former Microsoft staffer who heads her own product design company, recently told Fast Company, the process matters as much as the result. The right question to ask, she says, is, “Did you involve someone in your design process who was previously unable to participate? How you get there is what makes it inclusive, not that it’s targeted at an underrepresented or underserved community.”50 Inclusive marketing took hold at Hyatt Hotels when Hyatt recognized that half of all business trav- elers are women. Acknowledging women’s prefer- ences and concerns, the hotel chain remedied issues it had not seen as problems before, such as male employees making late-night room-service deliveries, mirrors and bathrobes designed for larger and taller male guests, and dark parking lots that made women feel less safe. All the chain’s guests benefited from the changes, not just women.51 Using Product Design to Reach a Diverse Market OB in Action Organizational Behavior: A Practical, Problem-Solving Approach 140 PART 1 Individual Behavior Managing diversity also gives an organization the ability to grow and maintain its business in an increasingly competitive marketplace. Here’s what Alex Gorsky, current Chairman and CEO of Johnson & Johnson, said: Our people are one of a kind–the way they think, feel, speak, and work; what they’ve experienced, and where they’re from. Harnessing these unique perspectives and experiences gives us great problem-solving potential—the ideas, solutions, and strat- egies that, when mobilized, brings health to billions of people.53 Research supports the logic of this strategy. For example, a recent study of 739 retail stores found reinforcement for the access-and-legitimacy perspective, defined in the following manner: An access-and-legitimacy perspective  on diversity is based in recognition that the organization’s markets and constituencies are culturally diverse. It therefore behooves the organization to match the diversity in parts of its own workforce as a way of gaining access to and legitimacy with those markets and constituent groups.54 This particular study discovered that customer satisfaction and employee productivity were higher when the racial-ethnic com- position of store employees matched that of customers.55 These favorable results were taken one step further by another team of researchers, who wanted to know whether customers would spend more money in stores when they perceived themselves as similar to the sales representatives. Results from 212 stores supported the idea that customer– employee similarity leads to more spending.56 Clearly it pays to manage diversity, but organizations cannot use diversity as a strategic advantage if employees fail to con- tribute their full talents, abilities, motivation, and commit- ment. Thus organizations must create an environment or culture that allows all employees to feel included and valu- able. Managing diversity is a critical component of creating this environment. Trends in Workforce Diversity For managers, the study of demographics suggests unique ways of managing diverse employees. For organizations, it helps signal whether human resource policies and proce- dures are appropriate to the characteristics of a diverse employee population. Let’s exam- ine five categories on the internal dimension of the diversity wheel in Figure 4.5—gender, race, sexual orientation, physical/mental abilities, and age—and one category on the exter- nal dimension, educational level. Women Break the Glass Ceiling—but Navigate a Labyrinth Coined in 1986, the term glass ceiling  identifies an invisible but absolute barrier that prevents women Advertisers, too, are beginning to value the diversity of the marketplace. Look carefully at TV ads and you’ll see mixed-race and same-sex couples promoting familiar products such as Campbell’s soup and Allstate insurance, and popular retailers such as Kohl’s and David’s Bridal. A Mattel’s commercial recently featured a young boy raving about Mattel’s iconic Barbie doll.52 YOUR THOUGHTS? 1. What do you think is the benefit of starting the design process by considering the needs of out- lier user groups? 2. Do you see any drawbacks to considering diver- sity in the product design process? Discuss. Companies increasingly recognize the value of having a workforce that matches the race of their customers. Why would customers prefer to be helped by someone like them? Steve Hix/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 141Social Perception and Managing Diversity CHAPTER 4 from advancing to higher-level positions. Various statistics support the existence of the glass ceiling. Take the pay gap between men and women, for example. In 2018, the median weekly income in full-time management, professional, and related occupations was $1,468 for men but $1,078 for women. Even among female and male MBA graduates who made about the same upon graduation over the past 15 years, by 2017 a 28 percent pay gap had opened with women earning an average of $59,000 less per year than their male counterparts.57 Some people think these pay differences come about because women leave the work- force to raise children, or because men perform better on the job. Although women are more likely than men to take time off to raise children, recent research continues to dem- onstrate that pay differences and productivity gaps were not due to performance evalua- tions, particularly in the STEM (science, technology, engineering, and mathematics) fields.58 Other unknown causes are behind the gender pay gap. Alice Eagly and Linda Carli conducted a thorough investigation into the organiza- tional life of women and in 2007 published their conclusions that women had finally bro- ken through the glass ceiling.59 We’ve updated the data reported in Eagly and Carli’s book that led them to their conclusion. In late 2018 there were more female CEOs (24 within the Fortune 500) and more women in managerial, professional, and related occupations than in the 1990s and 2000s.60 Statistics further showed that women had made strides along several measures. 1. Educational attainment: Women earned the majority of bachelor’s and master’s degrees in 2018. 2. Seats on boards of directors of Fortune 500 firms: Women held 9.6 percent of seats in 1995 and 21.2 percent in 2018. 3. Leadership positions in educational institutions and Congress: In 2017 women repre- sented 30 percent of college presidents, and in 2019, 131 women served in Congress— the largest number ever. 4. Federal court appointments: In 2019, more than 36 percent of federal courts of appeals judges were female.61 You can interpret the above statistics in one of two ways. • No Change. On the one hand, you might see proof that women remain underpaid and underrepresented in leadership positions, victims of discriminatory organizational practices. • Positive Change. Or you can agree with Eagly and Carli’s conclusion that “men still have more authority and higher wages, but women have been catching up. Because some women have moved into the most elite leadership roles, absolute barriers are a thing of the past.”62 Eagly and Carli propose that a woman’s career follows a pattern more characteristic of a path through a labyrinth. They believe a woman’s path to success is neither direct nor simple but rather contains twists, turns, and obstruc- tions, particularly for married women with children. Racial Groups Face Their Own Glass Ceiling and Perceived Discrimination The U.S. workforce is becoming increasingly diverse. Between 2016 and 2060, the Census Bureau predicts the following changes in ethnic representation: • Growth: The Asian population will grow from 5.7 percent to 9.1 percent of the total. • Growth: The Hispanic population will grow from 17.8 percent to 27.5 percent. • Mild Growth: The African American population will rise from 13.3 percent to 15.0 percent. • Decline: Non-Hispanic whites will drop from 61.3 percent to 44.3 percent.63 Sometimes a woman’s career is thought to resemble a labyrinth like this—with twists and turns needed to get through the maze. Have you experienced such twists and turns in your career? Sergey Nivens/Shutterstock Organizational Behavior: A Practical, Problem-Solving Approach 142 PART 1 Individual Behavior In 2060 so-called minority groups will constitute approximately 57 percent of the work- force, according to the Census Bureau.64 And yet three additional trends suggest that current-day minority groups are stalled at their own glass ceilings: Smaller percentage in the professional class. Hispanics, or Latinas/os, and African Americans have a smaller relative hold on managerial and professional jobs compared with whites. Women of color generally do better than men of color. More discrimination cases. The number of race-based charges of discrimination that were deemed to show reasonable cause by the U.S. Equal Employment Opportunity Commission increased from 294 in 1995 to 723 in 2017. Companies paid a total of $355.6 million to resolve these claims without litigation in 2017.65 Lower earnings. Minorities also tend to earn less personal income than whites. In 2018, median weekly earnings for workers 16 years and older were $916, $694, $1,095, and $680 for whites, blacks, Asians, and Hispanics, respectively. Asians had the highest median income.66 Sexual Orientation: LGBTQ People Become More Visible The term LGBT  is a widely recognized acronym to represent lesbian, gay, bisexual, and transgender. However a fifth letter has been gaining acceptance—Q—which according to the Human Rights Campaign can mean either “questioning” or “queer.” Q for “questioning” refers to someone in the process of exploring his or her sexual iden- tity. “People use the term queer because it’s not specific to sexual orientation or to gender identify but is more of an umbrella term that can encompass a lot of people.” You may want to avoid using the term queer because it is offensive to some in the LGBT community.67 We are discussing sexual orientation because organizations cannot afford to allow between 3.9 and 5.1 percent of the workforce to feel disenfranchised. This represents the estimated number of people who identify as LGBT.68 Because LGBTQ employees often experience a lack of inclusion, their engagement, performance, and retention can be affected. A recent study by the Human Rights Cam- paign Foundation, for instance, revealed that unwelcoming environments can lead to close to half of LGBT workers remaining closeted at work (meaning they don’t acknowledge their sexual orientation); 31 percent feeling unhappy at work; 20 percent searching for a different job; and 10 percent leaving a job because the work environment was not very accepting of LGBT people.69 The good news is that over 90 percent of Fortune 500 companies offer workplace protections on the basis of sexual orientation and gender identity. In contrast, 21 states do not offer such protections.70 Physical and Mental Abilities: People with Disabilities Face Challenges Approximately 20 percent of Americans have a physical or cognitive disability, according to the U.S. Census Bureau. The Americans with Disabilities Act  prohibits discrimina- tion against those with disabilities and requires organizations to reasonably accom- modate an individual’s disabilities.71 Not surprisingly, some people with disabilities have difficulty finding work. The U.S. Bureau of Labor Statistics found that 8.0 percent were unemployed in 2018, more than twice the rate of those with no disability (3.7 percent).72 Contrary to negative stereotypes about hiring the disabled, such as that making reasonable accommodation is expensive, many organizations are finding this group of people to be a valuable source of talent. Micro- soft, for example, has two programs that encourage inclusion for disabled workers: the autism hiring program and the supported employment program, as well as local partners who share information on Microsoft’s inclusive hiring practices with the community.73 Generational Differences in an Aging Workforce The U.S. population and work- force are getting older, and the workforce includes greater generational differences than ever before. In a recent poll by Frank N. Magid Associates, more than half of the respon- dents said they were least likely to get along with someone from another generation Organizational Behavior: A Practical, Problem-Solving Approach 143Social Perception and Managing Diversity CHAPTER 4 compared to 30 percent with a different racial background and 19 percent with the oppo- site sex. According to the company’s executive director, “Generational understanding is the new diversity training.”74 We already see four generations of employees working together, soon to be joined by a fifth (see Table 4.3). Managers need to deal effectively with generational differences in values, attitudes, and behaviors. Many companies, includ- ing IBM, Lockheed Martin, Ernst & Young LLP, and Aetna, address this issue by provid- ing training workshops on generational diversity. Table 4.3 summarizes generational differences using common labels: traditionalists, baby boomers, Gen Xers, Millennials/Gen Ys, and Gen Zers. We use such labels (and resulting generalizations) for sake of discussion. There are always exceptions to the charac- terizations shown in Table 4.3.75 Millennials account for the largest block of employees in the workforce, followed by baby boomers. Thus Millennials are often managed by boomers, who possess very different values and personal traits. Conflicting values and traits are likely to create friction between people. TRADITIONALISTS BABY BOOMERS GEN XERS MILLENNIALS (GEN Y) GEN ZERS Birth Time Span 1928–1945 1946–1964 1965–1980 1981–1996 1997– Current Population 25.7 million 73 million 65 million 71 million 86 million Key Historical Events Great Depression, World War II, Korean War, Cold War era, rise of suburbs Vietnam War; Watergate; assas- sinations of John and Robert Kennedy and Martin Luther King, Jr.; women’s movement; Kent State killings; first man on the moon MTV, AIDS epi- demic, Gulf War, fall of Berlin Wall, Oklahoma City bombing, 1987 stock market crash, Bill Clinton–Monica Lewinsky scandal September 11 terrorist attack, Google, Columbine High School shoot- ings, Enron and other corporate scandals, wars in Iraq and Afghanistan, Hurricane Katrina, financial crisis of 2008 and high unemployment Social media, election of Barack Obama, financial crisis of 2008 and high unemployment Broad Traits Patriotic, loyal, disci- plined, conformist, possessed of a high work ethic and respect for authority Workaholic, idealistic, competi- tive, materialistic, possessed of a high work ethic, in search of personal fulfillment Self-reliant, adaptable, cyni- cal, independent, technologically savvy, distrustful of authority, in search of work– life balance Entitled, civic minded, close parental involve- ment, cyberliteracy, appreciate diversity, multitasking, in search of work–life balance, technologically savvy Multitasking, digital natives, independent learners, cyberliteracy, communicate fast and online Defining Invention Fax machine Personal computer Mobile phone Google and Facebook Social media and iPhone apps SOURCES: Parker, Kim, Nikki Graf, and Ruth Igielnik. “Generation Z Looks a Lot Like Millennials on Key Social and Political Issues.” Pew Research Center, January 17, 2019. https://www.pewsocialtrends.org/2019/01/17/generation-z-looks-a-lot-like-millennials-on-key-social-and-political-issues/; Massot, Dolors. “15 Ways Generation Z Could Change the World.” Aleteia SAS, May 09, 2018. https://aleteia.org/2018/05/09/15-ways-generation-z-could-change-the-world/; “Resident population in the United States in 2017, by generation.” Statista; Meister, Jeanne C, and Karie Willyerd. The 2020 Workplace: How Innovative Companies Attract, Develop, and Keep Tomorrow’s Employees Today. Harper Business, 2010; and Alsop, Ron. The Trophy Kids Grow Up: How the Millennial Generation is Shaking Up the Workplace. Jossey-Bass, 2008. TABLE 4.3 Generational Differences Organizational Behavior: A Practical, Problem-Solving Approach 144 PART 1 Individual Behavior Millennials also tend to change jobs more frequently than other categories of workers. For example, the median job tenure of people between 20 and 24 is less than 16 months. This puts pressure on companies to find ways to retain this talented segment of the workforce.76 Goldman Sachs Group Inc. is addressing the issue head on. According to The Wall Street Journal the firm is “rethinking the way it structures bankers’ early years at the firm. The bank is dangling carrots, including promises to speed the path to promotions and eliminating some of the grunt work that often falls to younger employees.” In addition to lightening workloads, the company started having “town-hall-style meetings to address griev- ances to keep young people on board.” And just in case some workers jump ship and need to be replaced, Goldman is advertising on Spotify to attract more Millennial and Gen Z employees both in the United States and the UK.77 Will other groups of employees view these changes as unfair? Time will tell. Have age-related differences at school or work caused any conflicts for you? The fol- lowing Self-Assessment was created to assess your attitudes toward older employees. Because the term older is relative, define older employees in your own terms when complet- ing the assessment. What Are Your Attitudes Toward Working with Older Employees? Please be prepared to answer these questions if your instructor has assigned Self- Assessment 4.1 in Connect. 1. What is your attitude about working with older employees? Are you surprised by the results? 2. What is your level of satisfaction when working with older employees? 3. Based on your results, what can you do to improve your satisfaction when work- ing with older employees? SELF-ASSESSMENT 4.1 CAREER READINESS Educational Levels: Mismatch between Education and Organizational Needs There are three potential education–work mismatches: • College graduates may be in jobs for which they are overqualified. The U.S. Census Bureau estimates that 22 percent of the U.S. workforce has at least a college degree.78 Unfortunately, even with a strong economy, nearly 300,000 college gradu- ates are working minimum-wage jobs—148,000 with bachelor’s degrees and 146,000 with associate’s degrees.79 These graduates are underemployed, working at jobs that require less education than they have such as waiting tables, tending bar, painting, and other work that someone with less education could perform. Under- employment is associated with poorer work attitudes, job performance, job satisfac- tion, motivation, and psychological well-being.80 • College graduates may not have the skills desired by employers. Recent studies show that college graduates, while technically and functionally competent, lack teamwork skills, critical-thinking ability, oral communication skills, and analytic reasoning.81 There is also a shortage of college graduates in technical fields related to science, math, technology, and engineering. • High-school dropouts and others may not have the literacy skills needed for many jobs. A recent study revealed that 6.1 percent of all U.S. students between 16 and 24 dropped out of high school in 2016.82 The dropout rate is higher for males. This statistic, along with the fact that 32 million U.S. adults read below a basic level, is a real problem for employers, because about 50 percent of on-the-job reading materials are written at or above a ninth-grade level.83 Organizational Behavior: A Practical, Problem-Solving Approach 145Social Perception and Managing Diversity CHAPTER 4 The following is a list of the most common barriers to implementing successful diversity programs:84  1. Inaccurate stereotypes and prejudice. Mistaken perceptions manifest themselves in the belief that differences are weaknesses and that diversity hiring means sacrificing compe- tence and quality. As a reporter for The Wall Street Journal noted, “Studies show that negative stereotypes about aging—for example, that older people inevitably grow less productive and more depressed—are as pervasive as they are inaccurate.”85 Inaccurate stereotypes like this limit the promotability and job satisfaction of older workers.  2. Ethnocentrism. The ethnocentrism barrier is based on the feeling that our cultural rules and norms are superior to or more appropriate than the rules and norms of another culture.  3. Poor career planning. Lack of opportunities for diverse employees to get work assignments that qualify them for senior management positions can stunt careers. Discuss the most common barriers to implementing successful diversity programs. LO 4-6 4.6 BARRIERS AND CHALLENGES TO MANAGING DIVERSITY THE BIGGER PICTURE Wouldn’t you rather know what obstacles lay ahead, instead of discovering them too late? We share 11 common challenges to effectively managing diversity. There are more than 11 different types of lightning. This type is called an anvil crawler, because it travels horizontally and generally at high altitudes. A lightning storm like this can be dangerous, and we must be careful to avoid being struck. The same is true for an organization’s diversity climate—which signals the extent to which the organization’s “internal climate” supports diversity initiatives. Bad organizational climates, like bad lightning storms, result in people taking cover by withholding effort and skills. Menno van der Haven/Shutterstock Organizational Behavior: A Practical, Problem-Solving Approach 146 PART 1 Individual Behavior  4. A negative diversity climate. We define organizational climate in Chapter 7 as employee perceptions about an organization’s formal and informal policies, practices, and pro- cedures. Diversity climate  is a subcomponent of an organization’s overall cli- mate and is defined as the employees’ aggregate “perceptions about the organization’s diversity-related formal structure characteristics and informal values.”86 Diversity climate is positive when employees view the organization as being fair to all types of employees, which promotes employee loyalty and overall firm per- formance.87 It also enhances psychological safety. Psychological safety  reflects the extent to which people feel free to express their ideas and beliefs without fear of negative consequences. As you might expect, psychological safety is positively associated with outcomes in the Organizing Framework like innovation.88  5. A hostile working environment for diverse employees. Hostile work environments are characterized by sexual, racial, and age harassment and can be in violation of Equal Employment Opportunity law, such as Title VII of the Civil Rights Act.89 Whether perpetrated against women, men, older individuals, or LGBTQ people, hostile envi- ronments are demeaning, unethical, and appropriately called “work environment pol- lution.” You certainly won’t get employees’ best work if they believe the work environment is hostile toward them. The Applying OB box highlights the companies recognized for creating a work environment supportive of Millennials. Applying OB mothers, work–life balance, compensation, and giving back.”91 The top 10 companies were Northrop Grum- man, Discover Financial Services, Kaiser Permanente, Delta, Southwest Airlines, Apple, Pfizer Inc., Capital One, EY (one of the big four global accounting firms), and Dow Chemical. Among the highlights: Kaiser Permanente makes leadership training and mentoring programs available; Delta and Southwest both offer profit sharing and free travel to all their destinations; Discover hosts on-site fitness centers and mother’s rooms; and Apple pro- vides generous parental leave plans. Most of the top ten companies offer adoption assistance and some form of tuition assistance. At Discover, that means full payment for an online bachelor’s degree.92 Indeed.com, the popular job posting site, has released its list of the U.S. employers that Millennials rate as the best to work for. Now in their twenties and thirties and open to job changes, Millennials make up about a third of the U.S. workforce, and they place “opportunity to learn and grow” at the top of their wish-list for employ- ers. Many are disillusioned about the business commu- nity, finding that companies could act more ethically and do more to help make the world a better place. Millenni- als want flexibility in where and when they work, and they want to prioritize their health and their families. Parental leave and tuition assistance are also prized.90 An analysis of the list by Forbes found that the top companies recommended by Millennials had a few things in common: “a focus on education, working Best Companies for Millennials  6. Diverse employees’ lack of political savvy. Diverse employees may not get promoted because they do not know how to “play the game” of getting along and getting ahead in an organization. Research reveals that women and people of color are excluded from organizational networks that could help them rise.93 Some organizations attempt to overcome this barrier by creating employee resource groups that encourage indi- viduals with similar backgrounds to share common experiences and success strategies. American Express has 16 network groups and Cisco has 13.94 Organizational Behavior: A Practical, Problem-Solving Approach 147Social Perception and Managing Diversity CHAPTER 4  7. Difficulty balancing career and family issues. Women still assume most of the respon- sibilities associated with raising children. This makes it harder for them to work eve- nings and weekends or to travel. Even without children in the picture, household chores take more of a woman’s time than a man’s.  8. Fear of reverse discrimination. Some employees believe diversity management is a smoke screen for reverse discrimination. This belief leads to very strong resistance because it makes people feel one person’s gain is another’s loss.  9. Lack of organizational priority for diversity. Low priority for diversity leads to subtle resistance in the form of complaints and negative attitudes. Employees may complain about the time, energy, and resources devoted to diversity that could have been spent doing “real work.” 10. A poor performance appraisal and reward system. Performance appraisals and reward systems must reinforce the need to effectively manage diversity. Success must thus be based on a new set of criteria. For example, AT&T evaluates the extent to which its managers are inclusive of employees with different backgrounds. These evaluations are used in salary and promotion decisions.95 11. Resistance to change. Effectively managing diversity entails significant organiza- tional and personal change. Sometimes this resistance is a function of cross- cultural values. In Japan, for example, women have a difficult time being promoted to senior management positions because of the practice of lifetime employment and age-based promotions. This tradition still holds at both large and small companies.96 Are you curious about the diversity climate in a current or former employer? If yes, take the Self-Assessment below. It measures the components of an organization’s diversity climate and will enable you to determine whether your employer has or had a favorable one. Assessing an Organization’s Diversity Climate Please be prepared to answer these questions if your instructor has assigned Self- Assessment 4.2 in Connect. 1. What were the three highest- and lowest-rated survey items? What does this tell you about your employer? 2. Based on these scores, what advice would you give the human resources officer at the company you evaluated? SELF-ASSESSMENT 4.2 In summary, managing diversity is a critical component of organizational success. It is a challenge, but it is necessary if you want to create an environment that engages employ- ees and motivates them to do their best. Organizational Behavior: A Practical, Problem-Solving Approach 148 PART 1 Individual Behavior What are organizations doing to effectively manage diversity? We can answer this question by first providing a framework for categorizing organizational initiatives. Framework of Options One especially relevant framework was developed by R. Roosevelt Thomas Jr., a diversity expert. Thomas identified eight generic action options that organizations can use to address any type of diversity issue. After describing each option, we discuss relationships among them.97 Option 1: Include/Exclude Include/exclude is an outgrowth of affirmative action programs. Its primary goal is to either increase or decrease the number of diverse people at all levels of the organization. Big 5 Corporation is a sporting goods retailer that oper- ates 435 stores in 11 western states. Recently it was fined $165,000 to settle a racial dis- crimination and retaliation lawsuit filed by the EEOC. According to the lawsuit, Big 5’s store manager and assistant managers in a store on Whidbey Island, Washington, sub- jected an African American management trainee to ongoing racial harassment and death threats. The trainee was forced to go on several leaves due to stress from ongoing racial harassments and threats, as well as retaliatory work assignments and discipline. Ulti- mately Big 5 terminated the trainee. In addition to the fine, Big 5 agreed to review and revise its current policies regarding discrimination and to provide training to its employ- ees, supervisors, managers, and investigators on how to keep the workplace free of harass- ment, discrimination, and retaliation.98 Option 2: Deny People may deny differences exist, saying that all decisions are color-, gender-, and age-blind and that success is determined solely by merit and per- formance. Seasons 52, a national restaurant chain, agreed to settle a $2.85 million federal lawsuit that alleged age discrimination when it came to hiring employees. In the suit filed with the EEOC, the agency said managers at the restaurant chain tried to portray a young and hip image by hiring younger servers and hosts. The initial com- plaint alleged that the company wouldn’t hire two men in their mid-40s and early 50s because of their age. After contacting thousands of people over 40 who had applied for positions with Seasons 52, EEOC determined that more than 250 additional peo- ple claimed they were treated with bias during the interview process. Seasons 52 admits no liability and continues to deny the allegations but will be required to hold new training for all hiring managers regarding “non-discriminatory recruiting, inter- viewing, and hiring.”99 4.7 ORGANIZATIONAL PRACTICES USED TO EFFECTIVELY MANAGE DIVERSITY THE BIGGER PICTURE Whether you manage a diverse work group or find yourself managed within a diverse work group, you’ll do better by understanding the various ways in which organizations attempt to manage diversity. You’ll be able to review eight options in the following section. Hint: We rec- ommend mutual adaptation. Explain what organizations are doing to manage diversity effectively. LO 4-7 Organizational Behavior: A Practical, Problem-Solving Approach 149Social Perception and Managing Diversity CHAPTER 4 Option 3: Assimilate The idea behind assimilation is that, given time and reinforce- ment, all diverse people will learn to fit in or become like the dominant group. Organiza- tions initially assimilate employees through their recruitment practices and through orientation programs that describe their preferred values and standard operating proce- dures. Employees then are encouraged to refer to policies and procedures when confused about what to do in a specific situation. These practices create behavioral homogeneity among employees. Option 4: Suppress Differences are squelched or discouraged when suppression is the diversity strategy. Managers and peers tell employees to quit whining and complaining about issues. Saying, “You’ve got to pay your dues” is another way to s uppress differences and promote the status quo. Option 5: Isolate Isolation maintains the sta- tus quo by setting the diverse person off to the side. Then he or she is unable to influence organiza- tional change. Managers can isolate people and entire teams and departments by putting them on special projects, creating functionally independent entities often referred to as silos. Option 6: Tolerate Toleration entails acknowl- edging differences but not valuing or accepting them. This live-and-let-live approach allows organi- zations to give lip service to the issue of managing diversity. It differs from isolation in that it allows for the inclusion of diverse people, but differences are still not truly valued or accepted. Option 7: Build Relationships Relationship building is based on the premise that good relationships can overcome differences. It addresses diversity by fostering high- quality relationships—characterized by acceptance and understanding—among diverse groups. For example, financial services firm Baird has paired a group of senior leaders with junior Millennial employees so they can capitalize on their strengths and differences when it comes to developing competitive business strategies and building relationships with each other and their client base.100 Option 8: Foster Mutual Adaptation Mutual adaptation allows people to change their views for the sake of creating positive relationships with others. Employees and man- agers alike must be willing to accept differences and, most important, agree that everyone and everything is open for change. Diversity training is one way to kick-start mutual adap- tation. Research shows that such training can positively enhance people’s attitudes and feelings about working with diverse employees.101 Conclusions about Action Options Although the action options can be used alone or in combination, some are clearly more effective than others. Exclusion, denial, assimila- tion, suppression, isolation, and toleration are the least preferred options. Inclusion, build- ing relationships, and mutual adaptation are preferred. That said, Thomas reminds us that mutual adaptation is the only approach that unquestionably endorses the philosophy behind managing diversity. Choosing how to best manage diversity is a dynamic process and is influenced by the context. For instance, some organizations are not ready for mutual adaptation. The best they might be able to achieve is the inclusion of diverse people. These volleyball players illustrate the idea of assimilation. Note the common uniforms and the structured approach toward acknowledg- ing their opponents. Assimilation techniques used by some organi- zations create levels of homogeneity and behavioral expectations, which can be reinforced by corporate policies and procedures. Christopher Futcher/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 150 PART 1 Individual Behavior How Companies Are Responding to the Challenges of Diversity We close this chapter by sharing some examples and models that demonstrate how compa- nies are responding to the emerging challenges of managing diversity. Compare these to Thomas’s framework and you’ll find the greatest activity around Options 7 and 8, building relationships and fostering mutual adaptation. Response: Paying Attention to Sexual Orientation The Transgender Law Cen- ter estimates that about 2 percent of the population is transgender. The term transgender  applies to anyone whose gender identity or gender expression is different from sex at birth. Although 83 percent of Fortune 500 firms forbid discrimination based on gender identity, transgender people are protected against discrimination in only 18 states and the District of Columbia.102 More companies recognize that they don’t want to alienate this segment of the population, however, and are implementing programs to help them transi- tion. The Coca-Cola Company, for example, began offering transgender-inclusive health insurance coverage nearly a decade ago and also assists with the costs of taxes imposed on eligible U.S. employees whose same-sex spouse or partner was enrolled in health benefits in states that do not recognize same-sex marriage. Other companies, including PayPal, Hyatt, Microsoft, and IKEA, address the needs of transgender employees by trying to cre- ate an inclusive culture—where individuals can be their authentic selves.103 Unfortunately, the U.S. military does not appear to be trying to maintain an inclusive culture for transgender service personnel. In early 2019, the U.S. Supreme Court allowed President Trump’s ban on transgender persons in the military to proceed, which means most transgender persons—for now—are disqualified from military service.104 Response: Addressing Changing Customer Demographics Recognizing that its core demographic is changing, Target recently launched a campaign called #SinTraduc- ción (“without translation”) targeting Spanish-speaking customers, which used words with no English equivalent. For example, words such as “sobremesa,” a period of time after a meal conversing among family and friends, and “estrenar,” the act of using or wearing something for the first time, were used in the social media campaign to strike up conversa- tions between Target and its Hispanic customers. The marketing approach underscored Target’s acknowledgment that the Spanish language plays an important role in today’s American culture, particularly among its many Hispanic customers.105 Response: Helping Women Navigate the Career Labyrinth Organizations can make career navigation easier by providing flexible work schedules and the developmental assignments that prepare women for promotional opportunities. According to a business writer, the Boston Consulting Group “focuses heavily on recruiting and retaining women, offering part-time options, mentoring and professional-development programs.” On-ramping  programs encourage people to reenter the workforce after a temporary career break. Companies such as Credit Suisse and Goldman Sachs Group offer these to women in particular. Goldman, for example, instituted “returnship” programs that offer short-term job assignments to former employees.106 Response: Helping Hispanics Succeed Medical device maker Arthrex and Shaw Industries Inc. hope to raise employee productivity, satisfaction, and motivation by devel- oping customized training programs to improve the communication skills of their Spanish- speaking employees. Research reveals that retention and career progression of minorities can be significantly enhanced through effective mentoring.107 Response: Providing Community and Corporate Training to Reduce the Mismatch between Education and Job Requirements To combat education gaps on a more global level, JPMorgan Chase started The Fellowship Initiative (TFI) in Organizational Behavior: A Practical, Problem-Solving Approach Firefighters, 46 and 54, Sue for Age Discrimination Firefighters John Guido and Dennis Rankin were only 46 and 54, respectively, when they were fired by the Mount Lemmon fire district, a department of the state of Arizona. Each had put in nine years of employment. The fire district claimed the two were fired for budget reasons, and because they had not volunteered for wildland duty. But one of the people chosen to replace them had also not served on any wildland fire- fighting assignments for the last two years. Guido and Rankin then filed an age discrimina- tion suit with the Equal Employment Opportunity Commission (EEOC), charging they had been let go simply because they were the two oldest full- time members of the department. The EEOC agreed there was “reasonable cause” for their claim that in dismissing them Mount Lemmon had violated the Age Discrimination in Employment Act (ADEA). Problem-Solving Application 151Social Perception and Managing Diversity CHAPTER 4 New York in 2010 and expanded it to Chicago, Los Angeles, and Dallas. The goal is to provide intensive academic and leadership training to young men of color. Jamie Dimon, chair and CEO of JPMorgan Chase, is committed to the program. “These young men need access to high quality education and positive role models in and outside the classroom,” he said. Michael Bloomberg, then New York City’s mayor, applauded JPMorgan’s effort by concluding, “We need more civic-minded companies and organizations to step up and join this work, and I congratulate JPMorgan Chase for being a leader in this effort and for mak- ing a real difference in the lives of young men of color in our city.”108 At the individual corporate level, companies, including Wheeler Machinery Co. in Salt Lake City, have instituted specialized training programs that enable less-qualified peo- ple to perform more technically oriented jobs. Lockheed Martin and Agilent Technologies also offer paid apprenticeships or internships to attract high-school students interested in the sciences.109 Response: Retaining and Valuing Skills and Expertise in an Aging Workforce Here are seven initiatives that can help organizations to motivate and retain an aging workforce: 1. Provide challenging work assignments that make a difference to the firm and employees. 2. Give employees considerable autonomy and latitude in completing a task. 3. Provide equal access to training and learning opportunities when it comes to new technology and job processes. 4. Provide frequent recognition for skills, experience, and wisdom gained over the years. 5. Offer mentoring opportunities whereby older workers can pass on accumulated knowl- edge to younger employees. 6. Offer short sabbaticals to help the workforce stay fresh and current. 7. Design a work environment that is both stimulating and fun.110 You’ll see a number of these tactics being used by BAE, a multinational defense and aerospace company, according to a writer for Bloomberg Businessweek. “When BAE learns that an employee with deep institutional knowledge plans to retire, whether in a few months or a couple of years, a knowledge-transfer group of about a half-dozen people of varying ages working in the same area is formed. The teams meet regularly over months to talk and exchange advice. Younger workers elicit tips, and in some cases older ones gradu- ally hand off tasks to junior employees.”111 Some organizations, such as fire departments, have encountered problems managing older employees; see the Problem-Solving Application box. Organizational Behavior: A Practical, Problem-Solving Approach 152 PART 1 Individual Behavior Response: Resolving Generational Differences Traditional and boomer manag- ers are encouraged to consider their approach toward managing the technologically savvy Gen Xers and Millennials. Gen Xers and Millennials, for instance, are more likely to visit social networking sites during the workday, often perceiving this activity as a “virtual cof- fee break.” In contrast, traditional and boomer managers are more likely to view this activ- ity as wasted time, leading them to adopt policies that attempt to prevent it. Experts suggest that restricting access to social media will not work in the long run if an employer wants to motivate younger employees. Would you like to improve your working relationships with diverse people? If yes, Self-Assessment 4.3 can help. It asks you to compare yourself with a group of other people you interact with and then to examine the quality of the relationships between yourself and these individuals. This enables you to gain a better understanding of how similarities and differences among people influence your attitudes and behavior. A federal trial judge sided with the fire district’s attorneys, who argued that federal anti-discrimination law applied only to private organizations with at least 20 employees. Appealing the ruling, Guido and Rankin, who had meanwhile found other employment, watched as their case finally made its way to the U.S. Supreme Court several years later. In its 8-0 ruling in late 2018 (newly appointed Justice Brett Kavanaugh did not participate), the Supreme Court decided in favor of the two firefighters. Justice Ruth Bader Ginsberg’s opinion in the case said Mount Lemmon’s reading of the law was inconsistent with precedent and with EEOC rulings and that, while the ADEA does not in fact apply to private companies with fewer than 20 employees, it sets no size limit on public employers, including local government entities like the Mount Lemmon fire department. Thus these entities are required to obey the Age Discrimination Act regardless of size. With that ruling, Guido and Rankin were enti- tled to sue their former employer for damages. While the law does not guarantee they will win their case, they plan to ask for their lost past and future wages.112 Apply the 3-Step Problem-Solving Approach Step 1: Identify the problem in this case. Step 2: Identify the OB concepts or theories that may be causing the problem. For example, are stereotypes, diversity climate, or frameworks for managing diversity causes of the problem? Step 3: Recommend what you would do to correct the situation. Think both short term and long term. How Does My Diversity Profile Affect My Relationships with Other People? Please be prepared to answer these questions if your instructor has assigned Self- Assessment 4.3 in Connect. 1. Which diversity dimensions have the greatest influence on the quality of your interpersonal relationships? 2. Consider the person with whom you have the most difficulty working. Which dimensions of diversity may contribute to this relationship? What can you do to improve it? SELF-ASSESSMENT 4.3 CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 153Social Perception and Managing Diversity CHAPTER 4 Takeaways for Me Here are four additional things you can do to turn this chapter’s lessons into positive change in your personal and professional life. 1. Remember your personal and professional success depends on others’ perceptions of you: Because perceptions can override your good work, it is important to gather feed- back on what others think of you. 2. It is normal to be affected by stereotypes: It would be helpful to reflect on your stereo- types and try to avoid letting them bias your decisions and perceptions of others. 3. Consider how you will respond when you hear negative or disparaging things about diverse people: It’s going to happen, and your response can make the difference in stopping such comments. 4. Celebrate your uniqueness, but remember some people are uncomfortable with individ- ual differences among people: We encourage you to just be yourself. Takeaways for Managers There are three key implications for managers. 1. Because managers make many types of judgments about people, it is important to try and make these judgments without being biased or using stereotypes: This can be diffi- cult because such cognitive errors are a natural and normal part of how we process information. 2. The fundamental attribution bias can lead to inaccurate interpretations of someone’s suitability for a job or a performance evaluation: Be aware of this attributional error and try to consider both personal and situational factors when evaluating others. 3. Managing diversity is good for individual employees, managers, and organizations as a whole: Whether local or global, organizations will compete more effectively when all employees feel included, supported, and valued. We all should try our best to be understanding and supportive of people who are different from the majority. Describe the implications of social perception and managing diversity for you and managers. LO 4-8 4.8 MAKING THE CONNECTION: WHY IS UNDERSTANDING PERCEPTION AND DIVERSITY ESSENTIAL TO MY SUCCESS? THE BIGGER PICTURE Understanding the concepts of perception and diversity will play a significant role in being successful at work. Here are some key points to consider. Organizational Behavior: A Practical, Problem-Solving Approach 154 PART 1 Individual Behavior You learned that perception and managing diversity are essential for success. Why? Because social and person perception help you better understand the perception process, improve the way you are perceived, and adjust your own perception to avoid common percep- tual errors. Managing diversity (represented by both diversity and demographics in our Organiz- ing Framework) lets you better optimize diversi- ty’s effect on individual and group/team outcomes. Reinforce your learning with the Key Points below. Then consolidate your learning using the Organizing Framework. Finally, challenge your mastery of the material by answering the Major Questions in your own words. Key Points for Understanding Chapter 4 You learned the following key points. 4.1 THE PERCEPTION PROCESS • Perception is a mental and cognitive process that enables us to interpret and understand our surroundings. • Social perception is a four-stage process. The four stages are selective attention/compre- hension, encoding and simplification, storage and retention, and retrieval and response (see Figure 4.2). • Person perception is influenced by three components: characteristics of the perceiver, characteristics of the target, and characteris- tics of the situation. • Person perception affects a wide variety of organizational activities including hiring decisions, performance appraisals, and leadership. 4.2 STEREOTYPES • Stereotypes represent generalized beliefs about the characteristics of a group. • Stereotypes are not always negative, and they are not always inaccurate. • Common stereotypes exist about gender, race, and age. • Stereotyping is a four-step process that con- sists of categorization, inference, expectation formation, and maintenance. • We maintain stereotypes by (a) overestimat- ing the frequency of stereotypic behaviors exhibited by others, (b) incorrectly explaining expected and unexpected behaviors, and (c) differentiating minority individuals from ourselves. 4.3 CAUSAL ATTRIBUTIONS • Causal attributions are suspected or inferred causes of behavior. • According to Kelley’s model of causal attribu- tion, we make external attributions when con- sensus and distinctiveness are high and consistency is low. We make internal (personal responsibility) attributions when consensus and distinctiveness are low and consistency is high. • The fundamental attribution bias emphasizes personal factors more than situation factors while we are formulating attributions. In the self-serving bias we personalize the causes of our success and externalize the causes of our failures. 4.4 DEFINING AND MANAGING DIVERSITY • Diversity represents the individual differences that make people unique from and similar to each other. What Did I Learn? Organizational Behavior: A Practical, Problem-Solving Approach 155Social Perception and Managing Diversity CHAPTER 4 performance appraisal and reward systems, and (k) resistance to change. 4.7 ORGANIZATIONAL PRACTICES USED TO EFFECTIVELY MANAGE DIVERSITY • Organizations have eight options for addressing diversity issues: (a) include/exclude the number of diverse people at all levels of the organiza- tion, (b) deny that differences exist, (c) assimilate diverse people into the dominant group, (d) sup- press differences, (e) isolate diverse members from the larger group, (f) tolerate differences among employees, (g) build relationships among diverse employees, and (h) foster mutual adap- tation to create positive relationships. 4.8 WHY IS UNDERSTANDING PERCEPTION AND DIVERSITY ESSENTIAL TO YOUR SUCCESS? • Your overall success depends on other peo- ple’s perceptions of you—gathering feedback from them will help you grow and mature. • Your ability to recognize and avoid stereo- types will help you make unbiased decisions. • Managing diversity at all levels of an organi- zation will ensure that employees feel included, supported, and valued. The Organizing Framework for Chapter 4 As shown in Figure 4.6, you learned that diversity, demographics, and stereotypes serve as key per- son factors, while diversity climate is an important situation factor. You also know there are relevant processes across the individual level (perception, attributions, and psychological safety), the group/ team level (group/team dynamics), and the organi- zational level (options to manage diversity). These inputs and processes have critical outcomes. • Diversity varies along surface-level character- istics like race, gender, and age and along deep-level characteristics such as attitudes, opinions, and values. • Affirmative action is an outgrowth of equal employment opportunity legislation and is an intervention aimed at giving management a chance to correct past discrimination. • Managing diversity entails enacting a host of organizational changes that enable all people to perform to their maximum potential. 4.5 BUILDING THE BUSINESS CASE FOR MANAGING DIVERSITY • Managing diversity is predicted to be good business because it aims to engage employ- ees and satisfy customers’ unique needs. • There are six key demographic trends: (a) women are navigating a labyrinth after break- ing the glass ceiling, (b) racial groups are encountering a glass ceiling and perceived discrimination, (c) recognition of sexual orien- tation is growing in importance, (d) people with disabilities face challenges, (e) genera- tional differences are growing in an aging workforce, and (f) a mismatch exists between workers’ educational attainment and organi- zational needs. 4.6 BARRIERS AND CHALLENGES TO MANAGING DIVERSITY • There are 11 barriers to successfully imple- menting diversity initiatives: (a) inaccurate stereotypes and prejudice, (b) ethnocentrism, (c) poor career planning, (d) a negative diver- sity climate, (e) a hostile working environment for diverse employees, (f) diverse employees’ lack of political savvy, (g) difficulty balancing career and family issues, (h) fears of reverse discrimination, (i) lack of organizational prior- ity, (j) the need to revamp the organization’s Organizational Behavior: A Practical, Problem-Solving Approach 156 PART 1 Individual Behavior 4. How does awareness about the layers of diversity help organizations effectively man- age diversity? 5. What is the business rationale for managing diversity? 6. What are the most common barriers to imple- menting successful diversity programs? 7. What are organizations doing to effectively manage diversity, and what works best? Challenge: Major Questions for Chapter 4 1. How do I form perceptions of others? 2. How can I use awareness of stereotypes to make better decisions and manage more effectively? 3. How do I tend to interpret employee performance? FIGURE 4.6 Organizing Framework for Understanding and Applying OB ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. INPUTS PROCESSES OUTCOMES Person Factors • Diversity • Demographics • Stereotypes Situation Factors • Diversity climate Individual Level • Perceptions • Attributions • Psychological safety Group/Team Level • Group/team dynamics Organizational Level • Options to manage diversity Individual Level • Task performance • Work attitudes • Well-being/flourishing • Turnover • Career outcomes Group/Team Level • Group/team performance • Group satisfaction Organizational Level • Employer of choice • Customer satisfaction • Reputation Organizational Behavior: A Practical, Problem-Solving Approach 157Social Perception and Managing Diversity CHAPTER 4 Managing diversity is a hot topic among technology companies, some of which have started to display transparency by publishing their diversity profiles. Google’s diversity report reveals its workforce is 69.1 percent male and 30.9 percent female. Ethnicity data for Google’s U.S. workforce indicates 53.1 percent white, 36.3 percent Asian, 4.2 percent of two or more races, 3.6 percent Latinx, and 2.5 percent black.113 This pattern is similar to Apple (32 percent female and 54 percent white, and U.S. ethnicity data showing 21 percent Asian, 13 percent Hispanic, 9 percent black, 3 percent of two or more races, and 1 percent other)114 and Facebook (36 percent female, and U.S. ethnicity data of 46.6 percent white, 41.4 percent Asian, 4.9 percent Hispanic, and 3.5 percent black).115 Executives within the technology industry have started to implement a variety of programs and poli- cies to change the demographic profiles of their com- panies. For example, Pinterest established a 2018 goal to have 25 percent of new hires in engineering roles be female and 8 percent from underrepresented ethnic groups.116 Intel established a hiring goal of full representation of underrepresented minorities and women in its U.S. workforce by 2020.117 Is setting diversity hiring goals fair? While companies that set them note the hiring goals are not meant to be quotas, some managers may perceive them that way. This would likely create feelings of reverse discrimina- tion, fueling resistance to hiring diverse employees. What has led to the skewed demographics at tech- nology companies? Some experts believe the root cause goes back to patterns and norms in elementary and high school, where girls are not encouraged to focus on the STEM subjects (science, technology, engi- neering, and math). If this is true, female high-school students are not developing the proficiency that would help them major in STEM subjects in college. Further, a writer for Forbes concluded that an unconscious bias exists “that science and math are typically ‘male’ fields while humanities are primarily ‘female’ fields, and these stereotypes further inhibit girls’ likelihood of cul- tivating an interest in math and science.”118 A related issue is the “information gap.” High-school students simply do not know which jobs are in high demand. For example, research shows that 24 percent of high-school seniors “have no idea of what career they want to pursue. Of high school seniors who have pinpointed a desired profession, 23 percent said they made their career choice based on something they saw on TV or in a movie.”119 This is a problem because TV shows often depict technology-oriented people as geeky males. Who wants to be a geek? Others claim the tech industry has a pipeline prob- lem. In other words, not enough females and minorities are majoring in STEM subjects in college. Statistics conflict on this subject. Some data indicate that females earn fewer than 20 percent of college degrees in computer science and engineering, even though they achieve the majority of bachelor’s degrees in the United States.120 In contrast, other studies suggest there is not a pipeline issue. According to EdSource writer Carolyn Jones, about half of the students in high-school science and math courses are female.121 Data from the National Science Foundation indicate that women earn approximately 50 percent of science and engineering bachelor’s degrees.122 A USA Today study further showed that “top universities graduate black and Hispanic computer science and computer engineering students at twice the rate that leading technology companies hire them.”123 There must be some reason these students are not being hired. If the above data are accurate, then it is possible that companies have a systemic problem based on hiring managers’ beliefs, stereotypes, or unconscious biases. This occurred at Pinterest, for example, when it tried to increase the number of women and minorities being hired. Although recruiters found qualified applicants “from nontraditional backgrounds, managers often continued to prioritize people from places like Stanford and MIT, which have less broad student bodies. And while Adam Ward, Pinterest’s head of recruiting, and Abby Maldonado, its diversity-programs specialist, had encouraged colleagues to pass along résumés from a range of candidates, most of the referrals were still white or Asian,” according to Fast Company.124 Pinterest founder Evan Sharp believes technology companies may not be giving diversity the same type of attention they give to product development initiatives. There may also be more overt causes of the under- representation of female and minority tech employees. Consider results from a survey of 1,000 women who had held technology positions. These women explained why they believe females leave the tech field at a rate 45 percent higher than males. A perceived lack of PROBLEM-SOLVING APPLICATION CASE White, Male, and Asian: The Diversity Profile of Technology Companies Organizational Behavior: A Practical, Problem-Solving Approach 158 PART 1 Individual Behavior chapter, because we generally select cases that illustrate concepts in the current chapter. STEP 2: Identify causes of the problem by using material from this chapter, which has been summa- rized in the Organizing Framework shown in Figure 4.6. Causes will appear in either the Inputs box or the Processes box. A. Start by looking at Figure 4.6 to identify which person factors, if any, are most likely causes of the defined problem. For each cause, explain why this is a cause of the problem. Asking why multiple times is more likely to lead you to root causes of the problem. For example, if you think demographics—an input in the Organizing Framework—is a cause, ask yourself why. This might lead to the conclusion that there are not enough females and minorities who are taking STEM majors in college. In turn, this might lead to the conclusion that a poor pipeline is a root cause of demographics at technology compa- nies. Then ask yourself why this is happening. The cause might go all the way back to elemen- tary and high school. By following this process of asking why multiple times, you will be more likely to arrive at a more complete list of causes. B. Now consider the Processes box shown in Figure 4.6. Consider whether perception, attributions, psychological safety, group/team dynamics, or options to manage diversity are causes of the problem. For any concept that might be a cause, ask yourself, Why is this a cause? Again, do this for several iterations to arrive at root causes. C. Follow the same process for the situation factors. D. To check the accuracy or appropriateness of the causes, be sure to map them onto the defined problem. STEP 3: Make recommendations for solving the problem. Consider whether you want to resolve it, solve it, or dissolve it (see Section 1.5). Which recom- mendation is desirable and feasible? A. Given the causes identified in Step 2, what are your best recommendations? Use the content in Chapter 4 or one of the earlier chapters to pro- pose a solution. B. Potential solutions may be found in the OB in Action and Applying OB boxes within the chapter. These features provide insights about how other individuals or companies are handling the topic at hand. C. Create an action plan for implementing your recommendation. career growth/trajectory was the most common factor in females’ decisions to leave tech. Further, almost 50 percent of the women interviewed believed they had been paid less than their male counterparts. Other top reasons, particularly among women in tech aged 25–34, were difficulties breaking into management and leadership roles, perceived bias and discrimina- tion, and a lack of female leadership representation in the company.125 Could something as subtle as gender-based com- munication contribute to the problem? The answer is yes, according to a recent report presented in Fortune. A study of 1,100 technology resumes from 512 men and 588 women uncovered gender-related differ- ences that may affect a recruiter’s perceptions. For example, “women’s résumés are longer, but shorter on details. . . . Yet when it comes to providing details about previous jobs, the men present far more specific content than the women do,” according to the Fortune report. Women were also found to “lead with their cre- dentials and include more personal background. On average, the women’s résumés cite seven personal distinctions apiece, while the men’s cite four.” Overall, women tend to use more narrative while men are more precise about their experiences.126 Assume you are a senior leader at a technology company. What does the information in this case tell you about managing diversity? APPLY THE 3-STEP PROBLEM- SOLVING APPROACH TO OB STEP 1: Define the problem. A. Look first at the Outcome box of the Organizing Framework in Figure 4.6 to help identify the important problem(s) in this case. Remember that a problem is a gap between a desired and current state. State your problem as a gap and be sure to consider problems at all three levels. If more than one desired outcome is not being accomplished, decide which one is most impor- tant and focus on it for steps 2 and 3. B. Cases have protagonists (key players), and prob- lems are generally viewed from a particular pro- tagonist’s perspective. You need to identify the perspective—employee, manager, team, or the organization—from which you’re defining the problem. C. Use details in the case to identify the key prob- lem. Don’t assume, infer, or create problems that are not included in the case. D. To refine your choice, ask yourself, Why is this a problem? Explaining why helps refine and focus your thinking. Focus on topics in the current Organizational Behavior: A Practical, Problem-Solving Approach 159Social Perception and Managing Diversity CHAPTER 4 LEGAL/ETHICAL CHALLENGE Should Patient Requests Trump Health Care Employees’ Civil Rights? This case describes an incident that occurred at Beaumont Hospital in Dearborn, Michigan, and resulted in a lawsuit. Teoka Williams, a 10-year veteran black nurse at Beaumont, overheard her patient comment in a racially charged manner that she did not want to be cared for by a black nurse. Williams reported the incident to the hospital’s clinical manager who proceeded to bar the nurse from treating both the patient and the other patients sharing her room.127 Williams filed a complaint with the hospital’s human resources department and was told that “patient requests are honored all the time and the next time it happens she would simply be taken off the assign- ment altogether.” She felt “humiliated, embarrassed, and disappointed” by the experience. Her attorney Julie Gafkey said that health care facilities should not consent to patient requests at the expense of their employees’ civil rights. Williams sued the hospital for federal and state civil rights violations.128 The American Medical Association’s ethics code expressly prevents physicians from discriminating against patients based on race, gender, sexual orien- tation, gender identity, or other clinically irrelevant characteristics.129 Official policies and guidelines for dealing with patient discrimination against health care providers, however, are virtually nonexistent.130 Further, a survey of “emergency physicians found patients often make such requests, and they are rou- tinely accommodated. A third of doctors who responded said they felt patients perceive better care from providers of shared demographics, with racial matches considered more important than gen- der or religion.”131 Some hospitals are beginning to address this issue. For example, the Mayo Clinic in Rochester, Minnesota, has developed policies and procedures to protect its staff from patient discrimination. The policies allow staff members to deny discriminatory patient requests, extend guidance for handling such requests, and out- line official reporting mechanisms.132 Your Views What would you have done if you were a medical administrator at the time the request was made? 1. I would not have honored the patient’s request. I would have explained why Teoka Williams and other African American nurses are best suited to take care of the patient. 2. I would have done exactly what the hospital did. The patient has a right to be taken care of by someone with a preferred race or gender. What would you do about the lawsuit? 1. Fight it. It’s ridiculous that someone would feel emotional stress and humiliation from simply being reassigned. 2. Settle it and create a policy that prohibits honoring future requests like this. 3. Settle it but hold a hospitalwide meeting explain- ing the rationale for continuing to accommodate such requests. Organizational Behavior: A Practical, Problem-Solving Approach LO 5-1 Define motivation and how it affects your behavior. LO 5-2 Compare and contrast the content theories of motivation. LO 5-3 Compare and contrast the process theories of motivation. LO 5-4 Describe three approaches to motivating employees through job design. LO 5-5 Describe the implications of employee motivation for you and managers. After reading this chapter, you should be able to: The Organizing Framework for Understanding and Applying OB shown in Figure 5.1 summa- rizes what you will learn in this chapter. Although Chapter 5 focuses on motivation, an individual- level process, a host of person and situation factors influence it. There are more situation than person factors in the figure. This reinforces the simple fact that managers significantly affect our motivation because they have more control over situation than person factors. Figure 5.1 further shows that processes across the individual, group/team, and organizational level influence a variety of important outcomes. FIGURE 5.1 Organizing Framework for Understanding and Applying OB ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. INPUTS PROCESSES OUTCOMES Person Factors • Personality • Personal attitudes • Values—Theory X/Y • Needs Situation Factors • Hygiene factors • Motivating factors • Job characteristics • Job design • Leadership • Organizational climate Individual Level • Equity/justice • Expectancy processes • Goal setting processes • Voice Group/Team Level • Climate for justice Organizational Level • Climate for justice Individual Level • Intrinsic and extrinsic motivation • Task performance • Work attitudes • Citizenship behavior/ counterproductive behavior • Turnover Group/Team Level • Group/team performance Organizational Level • Customer satisfaction Foundations of Employee Motivation5 C ai a Im ag e/ Im ag e So ur ce Organizational Behavior: A Practical, Problem-Solving Approach 161 Negotiating for a Raise offered successful new ideas or initiatives; brought new clients in; or increased revenue? Get in the habit of regularly documenting your tangible achievements to clearly demonstrate what you’re worth to your firm. 5. Consider your options. If a raise isn’t possible just now, consider accepting another form of compensation instead, such as added vacation time, a one-time bonus, or work-life options like flextime or occasional telecommuting privileges. This is the “want” part of “Wish, want, walk.” “Think of things [the company] may have the ability to give you instead of money,” advises Allison Hutton, chief talent officer at Allavanti Group. “Coming up with alternatives is usually viewed as positive.”4 6. Be patient. It’s unlikely you’ll get an answer right away, so don’t expect one. Your boss will need to consider the department’s budget, the organization’s overall performance, the case you’ve presented, and your compensation relative to that of comparable others in the group or company. Keep your case factual, don’t oversell it, and choose your moment carefully to be sure of finding a receptive audience. If just-released quarterly results reflect poorly on your manager, for in- stance, hold your fire for a couple of weeks. 7. Stay positive, and don’t give up! At the very least, you can walk away with a plan you and your manager agree will eventually bring you the increase you want.5 Above all, if you’ve done a good job and can demonstrate just how good, don’t be afraid to make your case. Good luck! Among the many things you’ll dis- cover about motivation in this chapter is that money is not the only incentive leading to high performance. How- ever, there’s no question that equita- ble salaries and well-deserved bonuses are motivating, and that, conversely, inequities in pay can hurt job satisfaction and performance. What can you do if you feel your performance merits a bump in your compensation? What is the most effective way to ask for a raise? Here are a few suggestions from the experts. 1. Know what you want. One writer who has researched the special frustrations that Millennial women in par- ticular feel about compensation offers this three-word mantra: “Wish, want, walk.” That is, know what your ul- timate wish is, know what you would want if you couldn’t get your wish, and know what offer you would reject or walk away from.1 2. Know what you’re worth. Do your homework, on sites like Glassdoor.com and Salary.com, to find out what people with your level of experience are earning to do similar work in the same or related industries. Your chances of succeeding in a salary negotiation are much higher if your demands are realistic for your cir- cumstances, including any factors particular to your firm that you should take into account.2 3. Enlist support if possible. If a mentor or sponsor will champion your request for a raise (and if you can seek his or her advice as well), all the better. If you are a gig worker looking to raise your rates, this person could be a supportive client or clients. However, a word of caution: Transparency about pay has some advan- tages, but it is not the universal standard. Avoid refer- ring to what your colleagues make, even if you know it, as a reason you should make more. The conversation you want to have is about you, not about others.3 4. Build your story. Be prepared to offer concrete evi- dence of accomplishments and contributions that prove your worth. Document results above expecta- tions, successful projects, or responsibilities outside the normal scope of your job, and praise and commen- dations from your manager, customers, colleagues, and other influential voices. These will bolster your argu- ment that you deserve a pay increase. Have you saved your organization time, money, or other resources; Winning at Work What’s Ahead in This Chapter There are far too many dysfunctional organizations where managers don’t seem to have a clue about how to motivate workers. OB supplies proven meth- ods of how to motivate employees. These aren’t just abstract theories. All spring from observation and study of the workplace, and they have been vali- dated in real-life testing. Business professionals treasure them as tools for making work better and more productive. We’ll show you how these meth- ods operate and give practical tips and suggestions for implementing them. Ahlapot/iStockphoto/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 162 PART 1 Individual Behavior 5.1 THE WHAT AND WHY OF MOTIVATION Motivation theories help us understand our own behaviors in organizational settings and provide us tools for motivating others. Motivation: What Is It? Motivation explains why we do the things we do. It explains why you are dressed the way you are right now, and it can account for what you plan to do this evening. How Does It Work? The term motivation derives from the Latin word movere, mean- ing “to move.” In the present context, motivation  describes the psychological pro- cesses “that underlie the direction, intensity, and persistence of behavior or thought.”6 “Direction pertains to what an individual is attending to at a given time, inten- sity represents the amount of effort being invested in the activity, and persistence repre- sents for how long that activity is the focus of one’s attention.”7 There are two types of motivation: extrinsic and intrinsic. • Extrinsic motivation  results from the potential or actual receipt of external rewards. Extrinsic rewards such as recognition, money, or a promotion repre- sent a payoff we receive from others for performing a particular task. For exam- ple, in 2018 Southwest Airlines paid its employees $544 million in profit-sharing bonuses, increasing every employee’s annual compensation by nearly 10.8 per- cent. This is the 45th consecutive year that the airline has paid out profit-sharing bonuses to employees. According to Southwest CEO Gary Kelly, “Our people are our greatest asset and they deserve all the credit for our continued success.” Such recognition from management is certainly a motivating factor for Southwest workers.8 • Intrinsic motivation  occurs when an individual is inspired by “the positive internal feelings that are generated by doing well, rather than being depen- dent on external factors (such as incentive pay or compliments from the boss) for the motivation to work effectively.”9 We create our own intrinsic motivation by giving ourselves intrinsic rewards such as positive emotions, satisfaction, and self- praise. Consider the intrinsic motivation of Millennials Kory and Mallory Stevens, who started the Taft shoe company out of their apartment several years ago. They were recently named to Forbes 30-under-30 list of people to watch in the coming years for their passion, motivation, and entrepreneurship. Per the company web- site, “As Taft continues to grow, our vision for the brand remains the same—we believe in making beautiful shoes at beautiful prices and offering the best service Define motivation and how it affects your behavior. LO 5-1 THE BIGGER PICTURE Motivation is a key process within the Organizing Framework for Understanding and Apply- ing OB. Understanding the principles of motivation can help you both achieve personal goals and manage others in the pursuit of organizational goals.  Organizational Behavior: A Practical, Problem-Solving Approach 163Foundations of Employee Motivation CHAPTER 5 and value possible.” With NBA ballers James Harden and Dwayne Wade, as well as action star Dwayne Johnson as super fans, this dynamic couple has turned athletes and celebrities into shoe ambassadors via social media and are motivated to continue their success.10 The Two Fundamental Perspectives on Motivation: An Overview Researchers have proposed two general categories of motivation theories: content theories and process theories. Content theories identify internal factors such as needs and satisfac- tion that energize employee motivation. Process theories explain the process by which internal factors and situational factors influence employee motivation.11 It’s important to understand both motivational perspectives because they offer different solutions for han- dling motivational problems. The following two sections discuss several theories for each theoretical perspective. Intrinsic motivation helps Taft founders Kory and Mallory Stevens fulfill their vision of making beautiful shoes at competitive prices and offering the best possible service to their customers. Courtesy of Taft Clothing Organizational Behavior: A Practical, Problem-Solving Approach 164 PART 1 Individual Behavior 5.2 CONTENT THEORIES OF MOTIVATION Most content theories of motivation  are based on the idea that an employee’s needs influence his or her motivation. Content theorists ask, “What are the different needs that activate motivation’s direction, intensity, and persistence?” Needs  are defined as physiological or psychological deficiencies that arouse behavior. They can be strong or weak and are influenced by environmental factors. This tells you that human needs vary over time and place. Content theories include: • McGregor’s Theory X and Theory Y. • Maslow’s need hierarchy theory. • Acquired needs theory. • Self-determination theory. • Herzberg’s motivator-hygiene theory. McGregor’s Theory X and Theory Y Douglas McGregor outlined his theory in his book The Human Side of Enterprise.12 Draw- ing on his experience as a management consultant, McGregor formulated two sharply contrasting sets of assumptions about human nature. Theory X  is a pessimistic view of employees: They dislike work, must be monitored, and can be motivated only with rewards and punishment (“carrots and sticks”). McGregor felt this was the typical perspective held by managers. To help them break with this negative tradition, McGregor formulated his own Theory Y. Theory Y  is a modern and positive set of assumptions about people at work: They are self-engaged, committed, responsible, and creative. Consider the value of adopting a Theory Y approach toward people. One recent study demonstrated that employees and teams had higher performance when their managers displayed Theory Y behaviors. A second study uncovered higher levels of job satisfaction, organizational commitment, and organizational citizenship when managers engaged in Theory Y behaviors.13 Maslow’s Need Hierarchy Theory: Five Levels of Needs In 1943, psychologist Abraham Maslow published his now-famous need hierarchy theory of motivation. Although the theory was based on his clinical observation of a few neurotic individuals, it has subsequently been used to explain the entire spectrum of human behavior. The need hierarchy theory  states that motivation is a function of five basic needs: physiological, safety, love, esteem, and self-actualization. See Figure 5.2 for an explanation. Compare and contrast the content theories of motivation. LO 5-2 THE BIGGER PICTURE Five OB theories deal with the internal factors that motivate individuals. Several come from other disciplines. So you may have already encountered Maslow’s hierarchy of needs and related content theories such as McGregor’s Theory X and Theory Y, acquired needs theory, self-determination theory, and Herzberg’s motivator-hygiene theory. Organizational Behavior: A Practical, Problem-Solving Approach 165Foundations of Employee Motivation CHAPTER 5 The Five Levels Maslow proposed that the five needs are met sequentially and relate to each other in a “prepotent” hierarchy (see Figure 5.2). Prepotent means the current most-pressing need will be met before the next need becomes the most powerful or potent. In other words, Maslow believed human needs generally emerge in a predictable stair-step fashion. Thus when physiological needs have been met, safety needs emerge, and so on up the need hierarchy, one step at a time. Once a need has been satisfied, it activates the next higher need in the hierarchy. This process continues until the need for self-actualization has been activated.14 Using Maslow’s Theory to Motivate Employees Although research does not clearly support its details, Maslow’s theory does offer practical lessons. It reminds us, for instance, that employees have needs beyond earning a paycheck. In addition to offering health care benefits, which fills a physiological need, Wisconsin–based consumer products company SC Johnson has an on-site employee concierge service to help employees with some of life’s chores. Concierges send packages and flowers, pick up groceries, shop for the best deals on car insurance, take employees’ cars in for service, and even stand in line for concert tickets.15 This theory tells us that a “one style fits all” approach to motivation is unlikely to work. Studies show that different motivators are needed for employees working at small firms, whose owners may not have the money to spend on extensive benefits and perks. There are several strategies that will help keep employees motived at start-up or small businesses: • Offer flexibility when it comes to work hours; • Recognize and reward good performance; and • Involve employees in decision making.16 A final lesson of Maslow’s theory is that satisfied needs lose their motivational potential. Therefore, managers are advised to motivate employees by devising programs or practices aimed at satisfying emerging or unmet needs. Acquired Needs Theory: Achievement, Affiliation, and Power David McClelland, a well-known psychologist, began studying the relationship between needs and behavior in the late 1940s. He proposed the acquired needs theory,  which states that three needs—for achievement, affiliation, and power—are the key driv- ers of employee behavior.17 McClelland used the term “acquired needs” because he believes we are not born with our needs; rather we learn or acquire them as we go about living our lives. FIGURE 5.2 Maslow’s Need Hierarchy Most basic need. Entails having enough food, air, and water to survive. Desire for self-fulfillment—to become the best one is capable of becoming. The desire to be loved and to love. Includes the needs for aection and belonging. Consists of the need to be safe from physical and psychological harm. Need for reputation, prestige, and recognition from others. Also includes need for self-confidence and strength. Esteem Love Safety Physiological Self- Actualization McGraw-Hill Global Education Holdings, LLC Organizational Behavior: A Practical, Problem-Solving Approach 166 PART 1 Individual Behavior The Three Acquired Needs McClelland’s theory directs managers to drive employee motivation by appealing to three basic needs: • Need for achievement,  the desire to excel, overcome obstacles, solve prob- lems, and rival and surpass others. • Need for affiliation,  the desire to maintain social relationships, be liked, and join groups. • Need for power,  the desire to influence, coach, teach, or encourage others to achieve. People vary in the extent to which they possess these needs, and often one need dominates the other two (see Figure 5.3). McClelland identified a positive and negative form of the power need. The positive side is called the need for institutional power. It manifests in the desire to organize people in the pursuit of organizational goals and help people obtain the feeling of competence. The negative face of power is called the need for personal power. People with this need want to control others, and they often manipulate people for their own gratification. You can use this theory to motivate yourself, assuming you are aware of your need states. Can you guess which of the three needs is most dominant? Would you like to know which is helping or hindering the achievement of your personal goals? Check your percep- tions by taking the acquired needs Self-Assessment. Assessing Your Acquired Needs Please be prepared to answer these questions if your instructor has assigned Self- Assessment 5.1 in Connect. 1. Which of the three needs is dominant for you? Are you surprised by this result? 2. Which is/are helping you to achieve your goals? 3. Are any of the needs affecting your level of well-being? Should you make any changes in your need states? SELF-ASSESSMENT 5.1 CAREER READINESS Using Acquired Needs Theory to Motivate Others The following OB in Action box illustrates how Cameron Mitchell’s acquired needs affected the way he ran his success- ful restaurant business. You can apply acquired needs theory by appealing to the preferences associated with each need when you (1) set goals, (2) provide feedback, (3) assign tasks, and (4) design the job.18 Let’s consider how the theory applies to Cameron Mitchell. • Need for achievement. People motivated by the need for achievement, like Cam- eron Mitchell, prefer working on challenging, but not impossible, tasks or projects. They like situations in which good performance relies on effort and ability rather FIGURE 5.3 McClelland’s Three Needs Ach. A�. Power Ach. A�. Power Ach. A�. Power Ach. A�. Power Balanced Needs Achievement Orientation A�liation Orientation Power Orientation McGraw-Hill Global Education Holdings, LLC Organizational Behavior: A Practical, Problem-Solving Approach 167Foundations of Employee Motivation CHAPTER 5 Cameron Mitchell has achieved his childhood dream of running a successful restaurant business. He currently runs 32 upscale themed restaurants, such as Hudson 29 and Ocean Prime, in 12 states. His business earns about $300 million in annual revenue.19 Mitchell’s primary goal was “to create an extraor- dinary restaurant company known for great people delivering genuine hospitality.” He says, “In order to achieve this goal, I could not do it on my own! In fact, our past, present, and future success is directly attributed to our associates.”20 You might not have foreseen Mitchell’s success based on his difficult childhood. His parents divorced when he was 9, and he began drinking alcohol and trying drugs in middle school. When he started dealing drugs in high school, his mom threat- ened to call child protective services. Mitchell decided to run away. He moved into a one-room apartment with other teens and sometimes went days without food. He decided to return home at 16 when he found him- self thinking about suicide. He went back to high school and took a job as a dishwasher at a local steak house. He loved the job and concluded, “The restaurant business was where I wanted to be the rest of my life.” When Mitchell’s application to the Culinary Insti- tute of America was rejected due to his poor grades, he became more driven. He started working double shifts so he could pay for community college. He eventually graduated from culinary school and began working as a sous chef. Mitchell opened his first restaurant in 1993 in Columbus, Ohio. It was a success!21 Mitchell’s business puts people first. “Our associates are the core and foundation of our com- pany,” he says, “and they are my number one prior- ity. If they aren’t happy at work, it will show in the food they produce, the way they treat our guests and the way they treat each other. . . . We treat them great and, in turn, they take great care of the company.”22 The company’s commitment to its employees shows in the wide array of benefits it offers, which exceed industry standards. It also rewards restau- rant managers who support and develop their teams. Mitchell believes associates should have trusting, caring relationships with each other. He encourages managers’ autonomy by allowing them to provide input on menu and wine selection deci- sions. The company further reinforces the value of autonomy and effective decision making with lead- ership training programs. Managers are taught “how to think (rather than ‘how to do’). The goal is to encourage creative, appropriate problem-solving and idea generation,” according to the company’s website.”23 YOUR THOUGHTS? 1. Which of the three acquired needs is most pro- nounced in this example? 2. Would you like to work for someone like Cameron Mitchell? Why? Cameron Mitchell Courtesy of Cameron Mitchell Restaurants Cameron Mitchell, Founder and CEO of Cameron Mitchell Restaurants, Exemplifies Acquired Needs OB in Action Organizational Behavior: A Practical, Problem-Solving Approach 168 PART 1 Individual Behavior than luck, and they like to be rewarded for their efforts. High achievers also want to receive a fair and balanced amount of positive and negative feedback. This enables them to improve their performance. • Need for affiliation. People motivated by the need for affiliation like to work in teams and in organizational climates characterized as cooperative and collegial.24 You clearly see this theme at work in Cameron Mitchell’s restaurants. • Need for power. People with a high need for power like to be in charge. They enjoy coaching and helping others develop. Cameron Mitchell seems to exemplify this need. Self-Determination Theory: Competence, Autonomy, and Relatedness Self-determination theory was developed by psychologists Edward Deci and Richard Ryan. In contrast to McClelland’s belief that needs are learned over time, this theory identifies innate needs that must be satisfied for us to f lourish. Self-determination theory  assumes that three innate needs influence our behavior and well-being—the needs for competence, autonomy, and relatedness.25 Self-Determination Theory Focuses on Intrinsic Motivation Self-determination theory focuses on the needs that drive intrinsic motivation. Intrinsic motivation is longer lasting and has a more positive impact on task performance than extrinsic motivation.26 The theory proposes that our needs for competence, autonomy, and relatedness produce intrinsic motivation, which in turn enhances our task performance. Research supports this proposition.27 The Three Innate Needs An innate need is a need we are born with. The three innate needs are: 1. Competence—“I need to feel efficacious.” This is the desire to feel qualified, knowledge- able, and capable to complete an act, task, or goal. 2. Autonomy—“I need to feel independent to influence my environment.” This is the desire to have freedom and discretion in determining what you want to do and how you want to do it. 3. Relatedness—“I want to be connected with others.” This is the desire to feel part of a group, to belong, and to be connected with others. Although the above needs are assumed to be innate, according to Deci and Ryan their relative value can change over our lives and vary across cultures. Using Self-Determination Theory to Motivate Employees Managers can apply self-determination theory by trying to create work environments that support and encour- age the opportunity to experience competence, autonomy, and relatedness. Here are some specific suggestions: • Competence. Managers can provide tangible resources, time, contacts, and coach- ing to improve employee competence. They can make sure employees have the knowledge and information they need to perform their jobs. For example, e-commerce giant Amazon offers new hires an intensive, month-long training and leadership program before they begin their job, and its “virtual contact center” trains employees to work from home. According to the company’s corporate communi- cations manager, “We want our employees to be owners from day one, so we train them to take ownership over products and services that impact millions of customers.”28 Organizational Behavior: A Practical, Problem-Solving Approach 169Foundations of Employee Motivation CHAPTER 5 • Autonomy. Managers can empower employees and delegate meaningful assign- ments and tasks to enhance feelings of autonomy. This in turn suggests they should support decisions their employees make. A recent study confirmed this conclusion. Employees’ intrinsic motivation was higher when they perceived that their manager supported them.29 Schneider Electric is a global company specializing in energy management and automation and it offers dedicated courses for leadership, customer education, energy solutions, sales excellence, and functional skills to its more than 160,000 employees worldwide. Company executives believe providing high-potential, early-career opportunities for its workforce encourages autonomy and paves the way for strong and future leaders of the organization.30 • Relatedness. Many companies use fun and camaraderie to foster relatedness. In addi- tion, a positive and inspiring corporate vision can create a feeling of commitment to a common purpose. At 23andMe, a consumer genetic testing company, founder and CEO Anne Wojcicki believes in using her influence to further the position of women in the biotech industry, which has long been a male-dominated field. The company has a policy of hiring equal numbers of men and women, maintains a bal- ance of men and women at the leadership level, and fosters a workplace culture that supports liberal parental leave policies, a robust employee onboarding process, and a strong sense of belonging and relatedness.31 Herzberg’s Motivator-Hygiene Theory: Two Ways to Improve Satisfaction Frederick Herzberg’s theory is based on a landmark study in which he interviewed 203 accountants and engineers.32 These interviews, meant to determine the factors respon- sible for job satisfaction and dissatisfaction, uncovered separate and distinct clusters of factors associated with each. This pattern led to the motivator-hygiene theory,  which proposes that job satisfaction and dissatisfaction arise from two different sets of At Amazon, managers apply the self-determination theory by trying to create a work environment that supports and encourages the opportunity to experience compe- tence, autonomy, and relatedness. New hires undergo an intensive, month-long train- ing and leadership program before they start their new job, which helps them take ownership of the products and services delivered to millions of customers every day. Jeramey Lende/Shutterstock Organizational Behavior: A Practical, Problem-Solving Approach 170 PART 1 Individual Behavior factors—satisfaction comes from motivating factors and dissatisfaction from hygiene factors. • Hygiene factors—What makes employees dissatisfied? Job dissatisfaction was associ- ated primarily with factors in the work context or environment. Herzberg hypothe- sized that such hygiene factors—including company policy and administration, technical supervision, salary, interpersonal relationships with supervisors, and working conditions—cause a person to move from a state of no dissatis- faction to dissatisfaction. He did not believe their removal created an immediate impact on satisfaction or motivation (for that, see motivating factors following). At best, Herzberg proposed that individuals will experience the absence of job dissatis- faction when they have no grievances about hygiene factors. • Motivating factors—What makes employees satisfied? Job satisfaction was more frequently associated with factors in the work content of the task being performed. Herzberg labeled these motivating factors or motivators because each was associ- ated with strong effort and good performance. He hypothesized that such motivating factors, or motivators—including achievement, recognition, characteristics of the work, responsibility, and advancement—cause a person to move from a state of no satisfaction to satisfaction. Therefore, Herzberg’s theory predicts managers can motivate individuals by incorporating motivators into an individual’s job. For Herzberg, the groups of hygiene and motivating factors did not interact. “The opposite of job satisfaction is not job dissatisfaction, but rather no job satisfaction; and similarly, the opposite of job dissatisfaction is not job satisfaction, but no dissatisfaction.”33 Herzberg conceptualizes dissatisfaction and satisfaction as two parallel continuums. The starting point is a null state in which both dissatisfaction and satisfaction are absent. Theo- retically an organization member could have good supervision, pay, and working condi- tions (no dissatisfaction) but a tedious and unchallenging task with little chance of advancement (no satisfaction), as illustrated in Figure 5.4. Managerial View of Job Satisfaction and Dissatisfaction Insights from Herzberg’s theory allow managers to consider the dimensions of both job content and job context so they can manage for greater overall job satisfaction. There is one aspect of this theory we think is wrong, however. We believe you can satisfy and motivate people by providing good hygiene factors. REI (Recreational Equipment Inc.), regularly rated one of the top companies to work for by Fortune, is a good example. The company routinely pays both part- and full-time employees significantly more than regulatory minimums and FIGURE 5.4 Role of Job Content and Job Context in Job Satisfaction and Dissatisfaction No Satisfaction Jobs that do not o�er achievement, recognition, stimulating work, responsibility, and advancement. Jobs o�ering achievement, recognition, stimulating work, responsibility, and advancement. Jobs with good company policies and administration, technical supervision, salary, interpersonal relationships with supervisors, and working conditions. Jobs with poor company policies and administration, technical supervision, salary, interpersonal relationships with supervisors, and working conditions. Satisfaction Motivators No Dissatisfaction Dissatisfaction Hygiene Factors Job Content Job Context SOURCE: Whitsett, David A., and Erik K. Winslow. “An Analysis of Studies Critical of The Motivator-Hygiene Theory.” Personnel Psychology, Winter (1997): 391–415. Organizational Behavior: A Practical, Problem-Solving Approach provides benefits to part-timers who work 20 hours a week (industry threshold for benefits is typically 30 hours a week). In addition, company contributions to the employee retire- ment plan are considered very generous compared to other retailers—employees may receive up to an additional 15 percent of their pay contributed by the company. And its employee turnover rate is almost half that of other retailers.34 Other companies seem to agree with our conclusion, because they have been offering a host of hygiene factors in an attempt to attract and retain Millennials. A recent survey of 5,000 Millennials revealed they are looking for better workplace benefits, including flexible work arrangements, generous matches to their 401(k) plans, pet insurance, and help with paying down their student loan debt. In this tight labor market, many compa- nies are taking a closer look at their benefits packages to attract and maintain a competi- tive workforce.35 Using Herzberg’s Theory to Motivate Employees Although research does not support the two-factor aspect of Herzberg’s theory or the proposition that hygiene factors are unrelated to job satisfaction, three practical applications of the theory help explain why it remains important in the study of OB. 1. Hygiene first. There are practical reasons to eliminate dissatisfaction before trying to use motivators to increase motivation and performance. You will have a harder time motivating someone who is experiencing pay dissatisfaction or otherwise struggling with Herzberg’s hygiene factors. 2. Motivation next. Once you remove dissatisfaction, you can hardly go wrong by build- ing motivators into someone’s job. This suggestion represents the core idea behind the technique of job design that is discussed in the final section of this chapter. 3. A few well-chosen words. Finally, don’t underestimate the power of verbal recognition to reinforce good performance. Savvy managers supplement Herzberg’s motivators with communication. Positive recognition can fuel intrinsic motivation, particularly for people who are engaged in their work. Walmart Adds Sick-Leave Pay. Problem Solved? Early in 2019, the giant retailer Walmart instituted a sweeping revision of some core human resource policies affecting its 1.1 million hourly workers in the United States. The move was undertaken in response to the fact that an increasing number of states and cities now require employers to offer paid sick leave. As of February 2019, Walmart’s store and warehouse workers can earn one hour of paid leave for every 30 hours worked, up to 48 hours total. The time can be used for any pur- pose without infringing on vacation time. Since the new policy consolidates and unifies a number of earlier rules, the company expects it will simplify administration and compliance, as well as reduce absenteeism. Management also hopes the policy change will help continue a decline in turnover that started the year before, when, it says, an improved wage scale, relaxed dress codes, and more gener- ous parental leave helped reduce turnover by more than 10 percent.36 At the same time, however, the company has tightened up some of its other employment poli- cies. For instance, workers can now be fired for accumulating only five attendance violations within six months, whereas the limit was nine in the past. Short of firing, attendance has new financial conse- quences too. Although workers with perfect atten- dance can earn higher quarterly bonuses, they currently make up fewer than a third of Walmart’s hourly employees. Those who miss more than a handful of shifts will now see their bonuses cut by as much as half. Before the policy revamp, Problem-Solving Application 171Foundations of Employee Motivation CHAPTER 5 Organizational Behavior: A Practical, Problem-Solving Approach 172 PART 1 Individual Behavior Apply the 3-Step Problem-Solving Approach Step 1: Define the problem in this case. Step 2: Identify the key causes of this problem. Step 3: Make your top two recommendations for fixing the problem at Walmart. employee bonuses were based solely on store performance.37 “Walmart is responding to our call for change with a new policy. But what they are giving with one hand, they are taking with the other,” said Shashauna Phillips, a Walmart employee in South Carolina and a leader in OUR Walmart, a worker group. Phillips also worries that one result of offering a financial incentive for perfect attendance is that employees will come to work sick.38 Others share her concern that Walmart has a way to go before it can claim to be doing every- thing possible to support and retain its workers. Vermont’s Senator Bernie Sanders, for example, issued a statement saying that Walmart’s new sick- leave policy was “a small step forward but not enough,” noting that “Walmart . . . is not a poor company” and urging it to raise its starting pay to $15 an hour (as a public outcry and legislation introduced by Sanders recently forced Amazon to do). Walmart currently starts its hourly workers at $11 an hour, up from only $9 as recently as 2017.39 Writing in The Hill, Congressional representative Ro Khanna of California and Marc Perrone, Interna- tional President of the United Food and Commer- cial Workers Union, also urged Walmart to increase its basic wage, saying that Congress should take action again to compel Walmart and other large employers to pay their workers enough to feed their families and avoid forcing the “taxpayer- funded safety net” to make up the difference. Amazon faced a choice between raising wages and paying the government for the social safety net benefits its workers claimed. It opted to raise wages; Khanna and Perrone feel Walmart should make the same decision.40 Walmart’s sales are growing steadily and are expected to near $530 billion for fiscal 2019.41 Figure 5.5 illustrates the overlap among the need and satisfaction theories discussed in this section. As you can see, the acquired needs and self-determination theories do not include lower-level needs. Remember, higher-level need satisfaction is more likely to foster well-being and flourishing. FIGURE 5.5 A Comparison of Need and Satisfaction Theories Maslow Higher-level needs Lower-level needs Achievement Power A�liation Motivating factors Hygiene factors Competence Autonomy Relatedness Self-actualization Esteem Love Safety Physiological Acquired Needs Self-Determination Herzberg McGraw-Hill Global Education Holdings, LLC Organizational Behavior: A Practical, Problem-Solving Approach 173Foundations of Employee Motivation CHAPTER 5 Process theories of motivation  describe how various person factors and situation factors in the Organizing Framework affect motivation. They go beyond content theo- ries by helping you understand why people with different needs and levels of satisfaction behave the way they do at work. In this section we discuss three process theories of motivation: • Equity/justice theory • Expectancy theory • Goal-setting theory Equity/Justice Theory: Am I Being Treated Fairly? Defined generally, equity theory  is a model of motivation that explains how people strive for fairness and justice in social exchanges or give-and-take relation- ships. According to this theory, people are motivated to maintain consistency between their beliefs and their behavior. Perceived inconsis tencies create cognitive dissonance (or psychological discomfort), which in turn motivates corrective action. When we feel victim- ized by unfair social exchanges, the resulting cognitive dissonance prompts us to correct the situation. This can result in a change of attitude or behavior. Consider what happened when workers at several U.S. poultry processing plants were forced to wear adult diapers during their work shifts as a result of being denied bathroom breaks by supervisors. A report by Oxfam America revealed supervisors repeatedly mocked workers and ignored their requests and threatened punishment or firing in an effort to keep the process- ing line running to meet production quotas. In the U.S. poultry industry, less than a third of all plants are unionized, which leaves most workers without crucial safety protections.42 In addition, another investigation found that the more than half a million men and women who work in meat-processing plants have some of the most dangerous factory jobs in America.43 As a result of pressure from worker advocate groups and unions, as well as growing consumer aware- ness about the hazards experienced by poultry work- ers, Tyson Foods announced it would provide regularly scheduled bathroom breaks, give more attention to the line speeds at its processing plants, offer training on workers’ rights, and establish safety councils that would include employees.44 Compare and contrast the process theories of motivation. LO 5-3 THE BIGGER PICTURE Process theories examine the way personal factors and situation factors influence employee motivation. You’ll be considering three major process theories: equity/justice theory, expectancy theory, and goal-setting theory. Each offers unique ideas for motivating yourself or employees. 5.3 PROCESS THEORIES OF MOTIVATION Working the processing line at a U.S. poultry plant is a dangerous and challenging job, fraught with near-impossible work goals. Intense pressure from worker advocate groups, labor unions, and even consumers has resulted in companies improving conditions for their workers. USDA photo by Preston Keres. Organizational Behavior: A Practical, Problem-Solving Approach 174 PART 1 Individual Behavior Psychologist J. Stacy Adams pioneered the use of equity theory in the workplace. Let us begin by discussing his ideas and their current application. We then discuss the exten- sion of equity theory into justice theory and conclude by discussing how to motivate employees with both these tools. The Elements of Equity Theory: Comparing My Outputs and Inputs with Those of Others The key elements of equity theory are outputs, inputs, and a com- parison of the ratio of outputs to inputs (see Figure 5.6). • Outputs—“What do I perceive that I’m getting out of my job?” Organizations provide a variety of outcomes for our work, including pay/bonuses, medical benefits, chal- lenging assignments, job security, promotions, status symbols, recognition, and par- ticipation in important decisions. Outcomes vary widely, depending on the organization and our rank in it. • Inputs—“What do I perceive that I’m putting into my job?” An employee’s inputs, for which he or she expects a just return, include education/training, skills, creativity, seniority, age, personality traits, effort expended, experience, and personal appearance. FIGURE 5.6 Elements of Equity Theory Equity theory compares how well you are doing to how well others are doing in similar jobs. Instead of focusing just on what you get out of the job (outputs) or what you put into the job (inputs), equity theory compares your ratio of outputs to inputs to those of others. Outpu ts Pay, b enefit s, assign ments , etc. Input s Time, skills , educa tion, e tc. Resul ts What am I getting out of my job? My Ratio My Perceptions What are others getting out of their jobs? What am I putting into my job? What are others putting into their jobs? Equity I’m satisfied. I see myself as faring comparably with others. Negative Inequity I’m dissatisfied. I see myself as faring worse than others. Positive Inequity Am I satisfied? I see myself as faring better than others. (See note.) Others’ Ratio vs. Note: Does positive inequity result in satisfaction? Some of us may feel so. But J. Stacy Adams recognized that employees often feel guilty about positive inequity, just as they might become angry about negative inequity. Your positive inequity is others’ neg- ative inequity. If your coworkers saw you as being favored unfairly in a major way, wouldn’t they be outraged? How effective could you be in your job then? McGraw-Hill Global Education Holdings, LLC Organizational Behavior: A Practical, Problem-Solving Approach 175Foundations of Employee Motivation CHAPTER 5 • Comparison—“How does my ratio of outputs to inputs compare with those of relevant others?” Your feelings of equity come from your evaluation of whether you are receiving adequate rewards to compensate for your collective inputs. In practice people perform these evaluations by comparing the perceived fairness of their out- put-to-input ratio to that of relevant others (see Figure 5.6). They divide outputs by inputs, and the larger the ratio, the greater the expected benefit. This comparative process was found to generalize across personalities and countries.45 People tend to compare themselves to other individuals with whom they have close interpersonal ties, such as friends, and to whom they are similar, such as people perform- ing the same job or individuals of the same gender or educational level, rather than to dis- similar others. For example, we work for universities, so we consider our pay relative to that of other business professors, not the head football coach. The Outcomes of an Equity Comparison Figure 5.6 shows the three different equity relationships resulting from an equity comparison: equity, negative inequity, and positive inequity. Because equity is based on comparing ratios of outcomes to inputs, we will not necessarily perceive inequity just because someone else receives greater rewards. If the other person’s additional outcomes are due to his or her greater inputs, a sense of equity may still exist. However, if the comparison person enjoys greater outcomes for simi- lar inputs, negative inequity will be perceived. On the other hand, a person will experience positive inequity when his or her outcome-to-input ratio is greater than that of a relevant comparison person. People tend to have misconceptions about how their pay compares to that of their colleagues. These misconceptions can create problems for employers. Consider the implications of results from a recent PayScale study of more than 500,000 employees. Close to 90 percent of those who were paid above the market—positive inequity—believed they were underpaid, while only 10 percent correctly perceived they were overpaid. In addition, 11 percent of the people paid at the market rate—equity—believed they were underpaid. When it comes to employee satisfaction, study results revealed that how employees feel about the pay process is more than five times more impactful on how satisfied they are than how they are paid relative to the market.46 In both these cases, significant numbers of equitably treated people perceived a state of inequity. If manage- ment fails to correct these perceptions, it should expect lower job satisfaction, commit- ment, and performance. The Elements of Justice Theory: Distributive, Procedural, and Interactional Justice Beginning in the later 1970s, researchers began to expand the role of equity theory in explaining employee attitudes and behavior. This led to a domain of research called organizational justice. Organizational justice reflects the extent to which people per- ceive they are treated fairly at work. This, in turn, led to the identification of three different components of organizational justice: distributive, procedural, and interactional.47 • Distributive justice  reflects the perceived fairness of the way resources and rewards are distributed or allocated. Do you think fairness matters when it comes to the size of people’s offices? Robert W. Baird & Co., a financial services firm ranked as Fortune’s 16th best place to work in 2019, did. The company decided to make everyone’s office the same size in its newly renovated corporate headquarters.48 • Procedural justice  is the perceived fairness of the process and procedures used to make allocation decisions. • Interactional justice  describes the “quality of the interpersonal treatment people receive when procedures are implemented.”49 Interactional justice does not pertain to the outcomes or procedures associated with decision making. Instead it focuses on whether people believe they are treated fairly when decisions are being implemented. Organizational Behavior: A Practical, Problem-Solving Approach 176 PART 1 Individual Behavior Tools exist to help us improve our ability to gauge the level of fairness or justice that exists in a current or past job. Try Self-Assessment 5.2. It contains part of a survey devel- oped to measure employees’ perceptions of fair interpersonal treatment. If you perceive your work organization as interpersonally unfair, you are probably dissatisfied and have contemplated quitting. In contrast, your organizational loyalty and attachment are likely greater if you believe you are treated fairly at work. Measuring Perceived Interpersonal Treatment Please be prepared to answer these questions if your instructor has assigned Self- Assessment 5.2 in Connect. 1. Does the level of fairness you perceive correlate to your work attitudes such as job satisfaction and organizational commitment? 2. What is causing your lowest level of perceived fairness? Can you do anything to change these feelings? 3. What do these results suggest about the type of company you would like to work for after graduation? SELF-ASSESSMENT 5.2 The Outcomes Associated with Justice Doesn’t it make sense that your percep- tions of justice are related to outcomes in the Organizing Framework? Of course! This realization has generated much research into organizational justice over the last 25 years. We created Figure 5.7 to summarize these research findings. The figure shows the strength of relationships between nine individual-level outcomes and the three components of orga- nizational justice. By and large, distributive and procedural justice have consistently stron- ger relationships with outcomes. This suggests that managers would be better off paying attention to these two forms of justice. In contrast, interactional justice is not a leading indicator in any instance. You can also see that certain outcomes, such as job satisfaction and organizational commitment, have stronger relationships with justice. All told, however, the majority of relationships between justice and important OB outcomes are weak. This reinforces the conclusion that motivating people via justice works for some outcomes but not for others. Equity Sensitivity In the study of equity theory, researchers have put forth the notion that not all individuals prefer an equal ratio of inputs to outcomes. This concept is known as equity sensitivity.50 For example, individuals who are high in equity sensitivity place more importance on inputs (what they can give in a specific situation) versus those who place more importance on outcomes (what rewards they can get in a certain situation).51 Recent research supports this concept, suggesting that equity sensitivity can help predict certain workplace outcomes, including organizational citizenship behaviors and inappropriate workplace behaviors.52 Using Equity and Justice Theories to Motivate Employees Figure 5.7 notwith- standing, managers can’t go wrong by paying attention to employees’ perceptions of equity and justice at work. Here are five practical lessons to help you apply equity and justice theories. 1. Employee perceptions count. No matter how fair management thinks the organization’s policies, procedures, and reward system are, each employee’s perception of the equity of those factors is what counts. For example, male employees were found to be more sensitive toward pay inequity and procedural justice than female employees.53 Further, justice perceptions can change over time.54 This implies that it is important for managers to regularly assess employees’ justice beliefs. Companies tend to do this by using employee work attitude surveys. Organizational Behavior: A Practical, Problem-Solving Approach 177Foundations of Employee Motivation CHAPTER 5 2. Employees want a voice in decisions that affect them. Employees’ perceptions of justice are enhanced when they have a voice in the decision-making process. Voice  is “the discre- tionary or formal expression of ideas, opinions, suggestions, or alternative approaches directed to a specific target inside or outside of the organization with the intent to change an objectionable state of affairs and to improve the current functioning of the organization.”55 Managers are encouraged to seek employee input on organizational issues that are important to employees, even though many employees FIGURE 5.7 Outcomes Associated with Justice Components The three components of organizational justice have varying effects on workplace outcomes, listed here in rough order from strongest to weakest. Note that job satisfaction and organizational commitment lead the list and most strongly align with justice components. Not Significant Distributive Justice Procedural Justice Interactional Justice Significant correlation to all outcomes and is mostly coequal with procedural justice in e�ect. It is the main leading indicator as to mental health. Only in performance is it a lagging indicator. Significant correlation to all outcomes and is mostly coequal with distributive justice in e�ect. It is the main leading indicator as to performance. Only in mental health is it a lagging indicator. Weakest correlation to all outcomes, as it is lagging behind or at best coequal to other indicators. For two outcomes (turnover and performance) it is not even significant. However, interactional justice remains of moderate significance in performance, and for some employees it could be significant across all categories. Organizational Citizenship Behavior Absenteeism Stress Health Problems Performance Mental Health Turnover Organizational Commitment Job Satisfaction StrongModerateWeak O ut co m es SOURCES: Pan, Xiaofu, Mengyan Chen, Zhichao Hao, and Wenfen Bi. “The Effects of Organizational Justice on Positive Organi- zational Behavior: Evidence from a Large-Sample Survey and a Situational Experiment.” Frontiers in Psychology 8 (January 2018). https://doi:10.3389/fpsyg.2017.02315; Robbins, Jordan M., Michael T. Ford, and Lois E. Tetrick. “Perceived Unfairness and Employee Health: A Meta-Analytic Integration.” Journal of Applied Psychology 97, no. 2 (March 2012): 235–72. https://DOI: 10.1037/a0025408; Fassina, Neil E., David A. Jones, and Krista L. Uggerslev. “Meta-Analytic Tests of Relationships between Organizational Justice and Citizenship Behavior: Testing Agent-System and Shared-Variance Models.” Journal of Organizational Behavior 29, no. 6 (August 2008): 805–28. https://dx.doi.org/10.1002/job.494; Cohen-Charash, Yochi, and Paul E. Spector. “The Role of Justice in Organizations: A Meta-Analysis.” Organizational Behavior and Human Decision Processes 86, no. 2 (November 2001): 278–321. http://dx.doi.org/10.1006/obhd.2001.2958; and Colquitt, Jason A., Donald E. Conlon, Michael J. Wesson, Christopher O. L. H. Porter, and K. Yee Ng. “Justice at the Millennium: A Meta-Analytic Review of 25 Years of Organizational Justice Research.” Journal of Applied Psychology 86, no. 3 (2001): 421–45. https://DOI: 10.1037//0021- 9010.86.3.425. Organizational Behavior: A Practical, Problem-Solving Approach 178 PART 1 Individual Behavior are reluctant to use their “voice.” Consider how Saleforce’s CEO Marc Benioff addressed the issue of employees wanting their voices heard on an important topic. Faced with employee objections to the company’s recent work with the U.S. Border Patrol (which has been separating children of illegal immigrants from their parents), Benioff created Silicon Valley’s first-ever Office of Ethical and Humane Use of Technology. With advisers from Georgetown, Harvard, Amnesty International, and other organizations, this initiative pro- vides Salesforce and its employees with a solid framework for discussing the thorny ethical issues that technological advances can raise. “We may not all agree,” Benioff said, “but we can have that discussion and figure out how to move forward together.”56 Managers can overcome issues such as these by creating a voice climate. A voice climate  is one in which employees are encouraged to freely express their opinions and feelings.57 3. Employees should have an appeals process. Employees should be given the opportunity to appeal decisions that affect their welfare. This opportunity fosters perceptions of distributive and procedural justice. 4. Leader behavior matters. Employees’ perceptions of justice are strongly influenced by their managers’ leadership behavior and the justice-related implications of their deci- sions, actions, and public communications.58 For example, Kenneth Frazier, CEO of pharmaceutical giant Merck, took a stand against extremism when he resigned from President Trump’s advisory business council after the president refused to criticize a group of white nationalist protesters in Charlottesville, Virginia. The grandson of a man born into slavery, Frazier said he resigned from the council because the presi- dent’s response, “was one that I felt was not in concordance with my views or the views we claim to hold as a country.”59 5. A climate for justice makes a difference. Team per- formance was found to be higher in companies that possessed a climate for justice.60 Do you think it’s OK for customers to yell at retail or service employees or treat them rudely? We don’t! A climate for justice incorporates relationships between employees and customers. Employees are more likely to provide poor customer service when managers allow customers to treat employees rudely or disrespectfully.61 And as for you? You can work to improve equity ratios through your behavior or your perceptions. For example, you could work to resolve negative inequity by asking for a raise or a promotion (raising your outputs) or by working fewer hours or exerting less effort (reduc- ing your inputs). You could also resolve the inequity cog- nitively, by adjusting your perceptions of the value of your salary or other benefits (outcomes) or the value of the actual work you and your coworkers do (inputs). Expectancy Theory: Does My Effort Lead to Desired Outcomes? Expectancy theory  holds that people are motivated to behave in ways that produce desired combina- tions of expected outcomes. Generally, expectancy theory can predict behavior in any situation in which a choice between two or more alternatives must be made. For instance, it can predict whether we should quit or stay at a job, exert substantial or minimal effort at a task, and major in management, computer science, account- ing, marketing, psychology, or communication. Shaquem Griffin, a linebacker with the Seattle Seahawks, has all the motivation he needs to become a successful player in the NFL. A congenital birth defect resulted in his left hand being amputated when he was 4 years old, but Griffin sees that life-changing event as the reason he continues to work so hard to succeed. Otto Greule Jr/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 179Foundations of Employee Motivation CHAPTER 5 The most widely used version of expectancy theory was proposed by Yale professor Victor Vroom. We now consider the theory’s key elements and recommendations for its application. The Elements of Vroom’s Expectancy Theory: Expectancy, Instrumentality, and Valence Motivation, according to Vroom, boils down to deciding how much effort to exert in a specific task situation. This choice is based on a two-stage sequence of expectations—moving from effort to performance and then from performance to outcome. Figure 5.8 shows the major components of this theory. Let us consider the three key elements of Vroom’s theory. 1. Expectancy—“Can I achieve my desired level of performance?” An expectancy rep- resents an individual’s belief that a particular degree of effort will be followed by a particular level of performance. Expectancies take the form of subjective probabili- ties. As you may recall from a course in statistics, probabilities range from zero to one. An expectancy of zero indicates that effort has no anticipated impact on performance, while an expectancy of one suggests performance is totally dependent on effort. EXAMPLE Suppose you do not know how to use Excel. No matter how much effort you exert, your perceived probability of creating complex spreadsheets that com- pute correlations will be zero. If you decide to take an Excel training course and practice using the program a couple of hours a day for a few weeks (high effort), the probability that you will be able to create spreadsheets that compute correlations will rise close to one. Research reveals that employees’ expectancies are affected by a host of factors. Some of the more important ones include self-efficacy, time pressures, task difficulty, ability and knowledge, resources, support from peers, leader behavior, and organiza- tional climate.62 2. Instrumentality—“What intrinsic and extrinsic rewards will I receive if I achieve my desired level of performance?” Instrumentality  is the perceived relationship between performance and outcomes. It reflects a person’s belief that a particular outcome is contingent on accomplishing a specific level of performance. Passing exams, for instance, is instrumental in graduating from college, or put another way, graduation is contingent on passing exams. In this tight labor market, even the U.S. military is offering bonuses to entice individuals to join. For example, the U.S. Navy offers enlistment bonuses (including money for college degrees) from $5,000 to more FIGURE 5.8 Major Elements of Expectancy Theory ValenceInstrumentality “What are the chances of reaching my performance goal?” “What are the chances of receiving various outcomes if I achieve my performance goals?” “How much do I value the outcomes I will receive by achieving my performance goals?” Expectancy E�ort Performance Goal Outcomes McGraw-Hill Global Education Holdings, LLC Organizational Behavior: A Practical, Problem-Solving Approach 180 PART 1 Individual Behavior than $25,000, depending on prior experience.63 The Problem-Solving Application box illustrates what happens when classical musicians find instrumentality out of balance. 3. Valence—“How much do I value the rewards I receive?” Valence  describes the positive or negative value people place on outcomes. Valence mirrors our personal prefer- ences. For example, most employees have a positive valence for receiving additional money or recognition. In contrast, being laid off or being ridiculed for making a sugges- tion would likely be negative valence for most individuals. In Vroom’s expectancy model, outcomes are consequences that are contingent on performance, such as pay, promotions, recognition, or celebratory events. For example, Aflac hosted a six-day appreciation week for employees that included theme park visits, movie screenings, and daily gifts.64 Would you value these rewards? Your answer will depend on your individual needs. Symphony Orchestras on Strike The rarified world of classical music is often per- ceived as calm, even staid, and above the hassles of the workaday world. But with the cost of produc- ing performances rising and ticket sales and donor support slumping in many markets, this picture is far from the truth. In recent years musicians of more than one symphony orchestra have gone on strike for better pay and other benefits. Among the latest are the players of the Chicago Symphony Orchestra, one of the top (and best-paid) U.S. clas- sical ensembles. The musicians’ union had been negotiating a new contract for almost a year when players recently began picketing Orchestra Hall in Chicago in an attempt to hang on to disputed employment benefits, including their prized defined-benefit pension plan. The orchestra’s management says the cost of maintaining this retirement benefit has skyrocketed, making it unsustainable for the group’s future, and proposes substituting a less expensive defined- contribution plan. This would follow the example of organizations in many other industries, which have switched to defined-contribution plans for their employees and thus shifted the investment risk to workers as well. But Chicago’s defined-benefit plan “has been the hallmark of the orchestra’s benefits package (and those of other leading orchestras) for over 50 years,” says a member of the musicians’ negotiating committee, and members want to keep it that way.65 While defined-benefit plans, in which benefits are essentially guaranteed, are still common in major U.S. orchestras, many such plans are under- funded, putting benefits for both current and future retirees in jeopardy. Management says its current offer will “put the musicians in as good if not a better state upon their retirements,” but Chicago’s players counter that attracting and retaining world-class musicians will grow ever more difficult “if our bene- fits continue to fall.”66 Meanwhile, the orchestra’s famed director Ricardo Muti urged management to consider the welfare of the musicians, even visiting the picket line, though some performances had to be canceled while talks continued.67 Problem-Solving Application Apply the 3-Step Problem-Solving Approach Step 1: Define the problem in this case. Step 2: Identify the cause of the problem. Do the parties featured in this case use the principles of expectancy theory? Step 3: Make a recommendation to the orchestra’s management. Should the musicians be allowed to keep their defined-benefit pension plan? Organizational Behavior: A Practical, Problem-Solving Approach 181Foundations of Employee Motivation CHAPTER 5 According to expectancy theory, your motivation will be high when all three elements in the model are high. If any element is near zero, your motivation will be low. Whether you apply this theory to yourself or managers apply it to their employees, the point is to simultaneously consider the status of all three elements. Using Expectancy Theory to Motivate Employees There is widespread agreement that attitudes and behavior are influenced when organizations link rewards to targeted behaviors. For example, in this era of #MeToo and other social initiatives, many companies, including Microsoft, Intel, and Facebook, have begun to link bonuses to how well senior leaders champion the firm’s anti-discrimination objectives and diversity efforts.68 Expectancy theory has important practical implications for individual managers and organizations as a whole (see Table 5.1). Three additional recommendations are often overlooked. First, establish the right goal. Our consulting experience reveals that people fail at this task more often than you might imagine. Second, remember that you can better keep behavior and performance on track by creating more opportunities to link performance and pay. Recent research supports this point. A survey of more than 2,500 HR and office professionals suggests there is a growing divide between manage- ment and employees when it comes to performance feedback and pay. While 94 per- cent of the executives surveyed are confident employees are satisfied with their company’s performance review process, more than two-thirds of employees believe the process is outdated, happens too infrequently, and is often incomplete. In addition, to help link performance with pay, some organizations have implemented variable pay plans with individual incentive bonuses being the most common type of incentive awarded.69 Finally, monetary rewards must be large enough to generate motivation, and this may not be the case for annual merit raises in the U.S. The average merit raise has been around 3 percent over the past five years, although recent studies suggest employees are anticipating larger increases based on strong company performances over the past year. To overcome this limitation, organizations are starting to eliminate merit raises and replace them with discretionary bonuses for special projects or one- time achievements.70 The following Problem-Solving Application illustrates expectancy theory in action at Westwood High School in Mesa, Arizona. TABLE 5.1 Managerial and Organizational Implications of Expectancy Theory FOR MANAGERS FOR ORGANIZATIONS • Determine the outcomes employees value. • Reward people for desired performance, and do not keep pay decisions secret. • Identify good performance so appropriate behaviors can be rewarded. • Design challenging jobs. • Make sure employees can achieve targeted performance levels. • Tie some rewards to group accomplishments to build teamwork and encourage cooperation. • Link desired outcomes to targeted levels of performance. • Reward managers for creating, monitoring, and maintaining expectancies, instrumentalities, and outcomes that lead to high effort and goal attainment. • Make sure changes in outcomes are large enough to motivate high effort. • Monitor employee motivation through interviews or anonymous questionnaires. • Monitor the reward system for inequities. • Accommodate individual differences by building flexibility into the motivation program. Organizational Behavior: A Practical, Problem-Solving Approach 182 PART 1 Individual Behavior Goal-Setting Theory: How Can I Harness the Power of Goal Setting? Regardless of the nature of their specific achievements, successful people tend to have one thing in common: Their lives are goal-oriented. This is as true for politicians seek- ing votes as it is for world-class athletes like Simone Biles. Research also supports this conclusion. The results of more than 1,000 studies from a wide range of countries clearly show that goal setting helps individuals, teams, and organizations to achieve success.72 Next we review goal setting within a work context and then explain the mechanisms that make goal setting so effective. We will discuss the practical applications of goal setting in Chapter 6. A High School Principal Uses Principles of Expectancy Theory to Motivate Students Tim Richard, principal at Westwood High School, decided to use a motivational program he called “Celebration” to improve the grades of 1,200 stu- dents who were failing one or more courses. The school has a total of 3,000 students. How Does the Program Work? “Students are allowed to go outside and have fun with their friends for 28 minutes on four mornings a week,” the principal explained to the local newspaper. “But those who have even one F must stay inside for ‘remediation’—28 minutes of extra study, help from peer tutors, or meetings with teachers.” Richard, who successfully implemented the program at a smaller high school, believes the key to motivating students is to link a highly valued reward—socializing with friends outside—with grades. Socializing includes playing organized games, dancing and lis- tening to music, eating snacks, and just plain hanging out. Results suggest the program is working. Positive results were found within two to three months of the motivation program’s start. The num- ber of students with failing grades dropped to 900. The principal’s goal is to achieve zero failing grades by the end of the year. What Is the Student Reaction? Students like the program. Ivana Baltazar, a 17-year-old senior, said, “You really appreciate Celebration after you have been in remediation.” She raised an F in economics to a B after receiving help. Good aca- demic students like Joseph Leung also like the program. Leung is a tutor to students with failing grades. He believes that “the tricky part is getting people out of the mind-set that they can’t suc- ceed. . . . A lot of times they just haven’t done their homework. I try to help them understand that the difference between a person passing and failing is their work ethic.”71 Problem-Solving Application Apply the 3-Step Problem-Solving Approach Step 1: Define the problem Tim Richard is trying to address. Step 2: Identify the causes. What OB concepts or theories are consistent with Richard’s motivational program? Step 3: Make recommendations for fixing the problem. Do you agree with Richard’s approach to improving student performance? Why or why not? Organizational Behavior: A Practical, Problem-Solving Approach 183Foundations of Employee Motivation CHAPTER 5 Edwin Locke and Gary Latham’s Theory of Goal Setting After studying four decades of research on goal setting, two OB experts, Edwin Locke and Gary Latham, pro- posed a straightforward theory of goal setting. Here is how it works.73 • Goals that are specific and difficult lead to higher performance than general goals like “Do your best” or “Improve performance.” This is why it is essential to set specific, challenging goals. Goal specificity  means whether a goal has been quantified. For example, a goal of increasing the score on your next OB test by 10 percent is more specific than the goal of trying to improve your grade on the next test. • Certain conditions are necessary for goal setting to work. People must have the abil- ity and resources needed to achieve the goal, and they need to be committed to the goal. If these conditions are not met, goal setting does not lead to higher perfor- mance. Be sure these conditions are in place as you pursue your goals. • Performance feedback and participation in deciding how to achieve goals are neces- sary but not sufficient for goal setting to work. Feedback and participation enhance performance only when they lead employees to set and commit to a specific, diffi- cult goal, even when that goal is to delegate other activities to colleagues. For exam- ple, managing partners, clients, and colleagues vie for time with Julia Lamm, a director at PwC in New York. With the help of her boss, Lamm has learned to pri- oritize her projects; reimagine routine status meetings with managers to focus on problem solving; and forgo nonessential meetings by delegating them to associ- ates.74 Goals lead to higher performance when you use feedback and participation to stay focused and committed to a specific goal. • Goal achievement leads to job satisfaction, which in turn motivates employees to set and commit to even higher levels of performance. Goal setting puts in motion a posi- tive cycle of upward performance. In sum, it takes more than setting specific, difficult goals to motivate yourself or others. You also want to fight the urge to set impossible goals. They typically lead to poor performance or unethical behavior, as they did at Volkswagen. The company admitted installing software on more than 11 million cars that manipulated emission test results.75 Company engineers claimed they tampered with the software because targets set by the CEO at the time, Martin Winterkorn, were too difficult to achieve. To date, the emissions scandal has cost the company more than $35 billion.76 Set challenging but attainable goals for yourself and others. U.S. gymnast Simone Biles won a medal in every event she entered in the 2019 world championships competition. Biles has now set her sites on winning gold in multiple events at the 2020 Summer Olympics in Tokyo, Japan. Francois Nel/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 184 PART 1 Individual Behavior What Are the Mechanisms Behind the Power of Goal Setting? Edwin Locke and Gary Latham, the same OB scholars who developed the motivational theory of goal setting just discussed, also identified the underlying mechanisms that explain how goals affect performance. There are four. 1. Goals direct attention. Goals direct our attention and effort toward goal-relevant activities and away from goal-irrelevant activities. If, for example, you have a term project due in a few days, your thoughts and actions tend to revolve around completing that project. In reality, however, we often work on multiple goals at once. Prioritize your goals so you can effectively allocate your efforts over time.77 For example, fast- food giant KFC recently announced plans to ensure that all plastic-based, consumer packaging across its global businesses will be recoverable or reusable by 2025. In addi- tion, the chain said the goal of having 100 percent of chicken within its U.S. supply chain raised without antibiotics important to human medicine has been met—two years after announcing its pledge.78 2. Goals regulate effort. Goals have an energizing function in that they motivate us to act. As you might expect, harder goals foster greater effort than easy ones. Deadlines also factor into the motivational equation. We expend greater effort on projects and tasks when time is running out. For example, an instructor’s deadline for turning in your term project would prompt you to complete it instead of going out with friends, watching television, or studying for another course. 3. Goals increase persistence. Within the context of goal setting, persistence repre- sents the effort expended on a task over an extended period of time. It takes effort to run 100 meters; it takes persistence to run a 26-mile marathon. One of your textbook authors—Angelo Kinicki—knows this because he ran a marathon. What an experience! His goal was to finish in 3 hours 30 minutes. A difficult goal like this served as a reminder to keep training hard over a three-month period. Whenever he wanted to stop training or run slow sprints, his desire to achieve the goal motivated him. Although he missed his goal by 11 minutes, it still is one of his proudest accomplishments. This type of persistence happens when the goal is personally important. 4. Goals foster the development and application of task strategies and action plans. Goals prompt us to figure out how we can accomplish them. This begins a cogni- tive process in which we develop a plan outlining the steps, tasks, or activities we must undertake. For example, the city of Memphis, Tennessee, recently announced a five-year plan called the 800 Initiative with the goal of growing the revenue of 800 minority-owned businesses by $50 million and helping them add paid employees to scale their operations. Funded partly by the city and commitments by other organi- zations including FedEx, the program offers business coaching, technical assis- tance, education, and access to loans and grants to help businesses grow.79 Setting and using action plans also reduces procrastination. If this is sometimes a problem for you, break your goals into smaller and more specific subgoals.80 That will get you going. Organizational Behavior: A Practical, Problem-Solving Approach 185Foundations of Employee Motivation CHAPTER 5 “Ten hours [a day] is a long time just doing this. . . . I’ve had three years in here and I’m like, I’m going to get the hell out. . . . It’s just the most boring work you can do.” —Ford autoworker “I love my job. . . . I’ve learned so much. . . . I can talk with biochemists, software engineers, all these interesting people. . . . I love being independent, relying on myself.” —Corporate headhunter “We see about a hundred injuries a year and I’m amazed there aren’t more. The main causes are inexperience and repetition. . . . People work the same job all the time and they stop thinking.” —Slaughterhouse human resources director These quotations reflect the different outcomes that can result from job design.81 Job design,  also referred to as job redesign or work design, refers to any set of activi- ties that alter jobs to improve the quality of employee experience and level of pro- ductivity. As you can see from this definition, job design focuses on motivating employees by considering the situation factors within the Organizing Framework. Figure 5.9 summarizes the approaches to job design that have developed over time.82 • Top-down. Managers changed employees’ tasks with the intent of increasing motiva- tion and productivity. In other words, job design was management led. • Bottom-up. In the last 10 years, the top-down perspective gave way to bottom-up processes, based on the idea that employees can change or redesign their own jobs and boost their own motivation and engagement. Job design is then driven by employees rather than managers. THE BIGGER PICTURE Job design focuses on motivating employees by considering the situation factors within the Organizing Framework for Understanding and Applying OB. Objectively, the goal of job design is to structure jobs and the tasks needed to complete them in a way that creates intrin- sic motivation. We’ll look at how potential motivation varies depending on who designs the job: management, you, or you in negotiation with management. 5.4 MOTIVATING EMPLOYEES THROUGH JOB DESIGN Describe three approaches to motivating employees through job design. LO 5-4 FIGURE 5.9 Historical Models of Job Design Employee or Work Teams Design Job Employee and Management Design Job Idiosyncratic Deals (I-Deals) Approach Bottom-Up Approach Management Designs Job Top-Down Approach Historical Recent Emerging McGraw-Hill Global Education Holdings, LLC Organizational Behavior: A Practical, Problem-Solving Approach 186 PART 1 Individual Behavior • I-deals. The latest approach to job design, idiosyncratic deals, attempts to merge the two historical perspectives. It envisions job design as a process in which employees and individual managers jointly negotiate the types of tasks employees complete at work. This section provides an overview of these three conceptually different approaches to job design.83 We give more coverage to top-down techniques and models because they have been used for longer periods of time and more research is available to evaluate their effectiveness. Top-Down Approaches— Management Designs Your Job In top-down approaches, management creates efficient and meaningful combinations of work tasks for employees. If it is done correctly, in theory, employees will display higher performance, job satisfaction, and engagement, and lower absenteeism and turnover. The five principal top-down approaches are scientific management, job enlargement, job rota- tion, job enrichment, and the job characteristics model. Scientific Management Scientific management draws from research in industrial engineering and is most heavily influenced by the work of Frederick Taylor (1856–1915). Taylor, a mechanical engineer, developed the principles of scientific management based on research and experimentation to determine the most efficient way to perform jobs. Scientific management  is “that kind of management which conducts a business or affairs by standards established by facts or truths gained through systematic obser- vation, experiment, or reasoning.”84 Designing jobs according to the principles of scientific management has both positive and nega- tive consequences. Positively, employee efficiency and productivity are increased. On the other hand, research reveals that simplified, repetitive jobs also lead to job dissatisfaction, poor mental health, higher levels of stress, and a low sense of accomplishment and personal growth.85 Recogni- tion of these negative consequences paved the way for the next four top-down approaches. Job Enlargement Companies first used job enlargement in the late 1940s in response to complaints about tedious and overspecialized jobs created from the principles of scientific management. Job enlargement  puts more vari- ety into a worker’s job by combining special- ized tasks of comparable difficulty. Some call this strategy horizontally loading the job. Researchers recommend using job enlargement as part of a broader approach that uses multiple motivational methods, because by itself job enlargement does not have a sig- nificant and lasting positive effect on job performance.86 Job Rotation Like job enlargement, job rotation gives employees greater variety in their work. Job rotation  calls for moving employees from one specialized job to another. Rather than performing only one job, workers are trained and given the opportunity to perform two or more separate jobs on a rotating basis. Proposed benefits of job rotation include the following:87 • Increased engagement and motivation because employees have a broader perspec- tive on the organization. This automotive assembly line, which is using robotics, is a great example of scientific management. The principles of scientific management have aided auto manufacturers to produce cars more efficiently and with higher quality. Glow Images Organizational Behavior: A Practical, Problem-Solving Approach 187Foundations of Employee Motivation CHAPTER 5 • Increased worker flexibility and easier scheduling because employees are cross- trained to perform different jobs. • Increased employee knowledge and abilities, which improves employees’ promot- ability and builds a pipeline of internal talent. More companies are now hiring new college graduates into “rotational programs,” which allow them to work in different functional areas for short periods and learn many different parts of the business along the way. Finally, the technique of job rotation has evolved into job swapping, with increased opportunities both here and abroad. (See the OB in Action box.) How would you like to work all over the country without the hassle of changing jobs? At Abbott, the health care company, new graduates with appropri- ate majors from partner universities who are selected for the two- to three-year corporate devel- opment program are asked to rotate among differ- ent jobs at company offices around the country. The focus areas are finance, information technology, manufacturing, quality assurance, engineering, and environmental health. Similarly, the Global Fellows Program at Edelman, a global communications marketing company, chooses strong employees with high potential to work at international locations like Shanghai, Moscow, and Abu Dhabi for as long as 18 months. HSBC Holdings, one of the world’s largest banking companies, has comparable opportunities that range from 10 weeks to 2 years and places interns and entry-level employees in locations as wide- ranging as Argentina, the UK, Singapore, and France. There they work in relationship manage- ment, global trade, and receivables finance in the Commercial Banking Global Graduate Program, and in retail banking and wealth management in the Digital Global Graduate Program. Emerson, a global technology and engineering company, runs an Engineers in Leadership Program that rotates as many as 18 candidates every year through a two-year program exposing them to one domestic and one international assignment. Benefits for the chosen employees include training, mentor- ship, and network building. Even the NFL runs a Junior Rotational Program that cycles employees through 6- to 12-month projects at different depart- ments including Events, Communications and Public Affairs, Football Operations and Officiating, and International.88 Job swapping, in which employees actually switch with one another for a time, can take place internally or externally. One good example of exter- nal swapping was forged by Travis York, CEO of a marketing firm called GYK Antler, who decided he could better understand how to work with his client, technology firm Dyn Industries, if he took CEO Jeremy Hitchcock’s place for a typical day. “We thought it would be good to be in each other’s shoes so we could understand each other better and gain a deeper perspective,” York says. The experiment was so rewarding that York has repeated it three times with other clients, including the CEO of an art school, the founder of a men’s fashion company, and a professional basketball player. Everything is “fair game” during the swap day except raises, hires, and firings. Several weeks later, York will follow up with the CEO and then make it a point to check in with the person on a regular basis thereafter.89 Common features of many successful job swaps and rotations are planning, goal setting, the possibility of benefit for participants on both sides, mentors to offer direction and answers, and written (or posted) documentation about the job to lower the learning curve.90 YOUR THOUGHTS 1. What are the pros and cons of job swaps and rotations? 2. What would be your ideal job swap or rotation? 3. If you managed a business, would you offer this option to your employees? Why or why not? Job Swapping and Job Rotation Opportunities Abound OB in Action Organizational Behavior: A Practical, Problem-Solving Approach 188 PART 1 Individual Behavior Job Enrichment Job enrichment is the practical application of Frederick Herzberg’s motivator-hygiene theory of job satisfaction, discussed earlier in this chapter. Specifically, job enrichment  modifies a job such that an employee has the opportunity to experi- ence achievement, recognition, stimulating work, responsibility, and advancement. These characteristics are incorporated into a job through vertical loading. Rather than giv- ing employees additional tasks of similar difficulty (horizontal loading), vertical loading gives them more autonomy and responsibility. For example, “Final Friday” is a big hit with employees at Hot Dog Marketing, a branding and digital marketing agency in the Austin, Texas area. According to CEO Jessica Scanlon, six times a year, employees are encouraged to use the last Friday of the month as a free day to work on personal projects or to pursue skills to further their professional development.91 The Job Characteristics Model Two OB researchers, J. Richard Hackman and Greg Oldham, played a central role in developing the job characteristics approach. They proposed that intrinsic motivation was determined by three psychological states. In turn, these psycho- logical states were fostered by the presence of five core job characteristics (see Figure 5.10). The goal of the job characteristics model  is to promote high intrinsic motivation by designing jobs that possess the five core job characteristics. The five characteris- tics are as follows: • Skill variety. The extent to which the job requires an individual to perform a variety of tasks that require him or her to use different skills and abilities. • Task identity. The extent to which the job requires an individual to perform a whole or completely identifiable piece of work. Task identity is high when a person works on a product or project from beginning to end and sees a tangible result. FIGURE 5.10 The Job Characteristics Model • Experienced meaningfulness of the work • Experienced responsibility for outcomes of the work • Gained knowledge of the actual results of the work activities • High intrinsic work motivation • High growth satisfaction • High general job satisfaction • High work e�ectiveness Outcomes • Skill variety • Task identity • Task significance • Autonomy • Feedback from job Core job characteristics Critical psychological states Moderators Not everyone wants a job covering all five characteristics. Job design is moderated by: These moderators will a�ect or moderate both the critical psychological states and the outcomes. 1. Knowledge and skill 2. Growth need strength 3. Context satisfactions SOURCE: Hackman, J. Richard, and Greg R. Oldham. Work Redesign. Massachusetts: Addison-Wesley, 1980. Organizational Behavior: A Practical, Problem-Solving Approach 189Foundations of Employee Motivation CHAPTER 5 • Task significance. The extent to which the job affects the lives of other people within or outside the organization. • Autonomy. The extent to which the job enables an individual to experience freedom, independence, and discretion in both scheduling and determining the procedures used in completing the job. • Feedback. The extent to which an individual receives direct and clear information about how effectively he or she is performing the job.92 Moderators. A moderator is a variable that changes the relationship between two other variables. Hackman and Oldham proposed that there are moderators that affect the success of job design, and they are shown in the moderator box of Figure 5.10. • Knowledge and skill (representing whether or not the person has the knowledge and skills to perform the enriched job). • Growth need strength (representing the desire to grow and develop as an individual). • Context satisfactions (representing the extent to which employees are satisfied with various aspects of their job, such as pay, coworkers, and supervision). The takeaway is that job design is more likely to work when people have the required knowledge and skills, when they want to develop, and when they are satisfied with their jobs. Job design is not for everyone. In Practice. Research identifies three practical implications of applying the job char- acteristics model. 1. Managers can increase employee job satisfaction.93 2. Managers can enhance employees’ intrinsic motivation and performance, while reducing absenteeism and stress.94 EXAMPLE File-sharing company Dropbox increases employee autonomy and motivation by its unlimited vaca- tion policy, explaining “we provide generous time off poli- cies for everything life throws your way.” Adobe’s frequent “check-in” conversations, which take the place of annual performance reviews, enable managers and employees to discuss performance and opportunities on an informal basis and provide real-time feedback to promote growth and development.95 3. Managers can find noticeable increases in the quality of per- formance after a job redesign program. Results from 21 exper- imental studies revealed that job redesign resulted in a median increase of 28 percent in the quality of performance.96 Bottom-Up Approaches—You Design Your Own Job As its name suggests, bottom-up job design is driven by employ- ees rather than managers; it is also referred to as job crafting. Job crafting  represents employees’ attempts to proactively shape their work characteristics.97 The concept is largely based on the theories of empowerment and intrinsic motivation, and its goal is to help employees experience a sense of meaning in their jobs. A recent survey of more than 2,200 professionals revealed that 90 percent of them would be willing to earn less money (roughly 23 percent of future earnings) for more meaning- ful work.98 This employee of Swiss-based computer device producer Logitech is working on a computer mouse. He looks very focused on the task at hand. It may be that job crafting is partly behind his engagement. The company is using job crafting to increase employee engagement and job satisfac- tion. As part of this effort the company created a 90-minute workshop to help employees learn how to align their strengths and interests with tasks contained in their jobs. Gaetan Bally/Keystone/AP Images Organizational Behavior: A Practical, Problem-Solving Approach 190 PART 1 Individual Behavior Forms of Job Crafting Employees are viewed as “job crafters” according to the bottom- up model because they are expected to define and create their own job boundaries. Table 5.2 illustrates three forms of job crafting. The first changes the job’s task boundaries. You can do this by taking on more or fewer tasks or by altering their scope or nature. The second form changes the relational nature of the job. Specifically, you can alter the quantity or quality of interactions you have with others at work, or you can establish new relationships. The third method is cognitive crafting. In this strategy you perceive or think differently about the exist- ing tasks and relationships associated with your job. Outcomes of Job Crafting The right-hand column in Table 5.2 outlines the potential impact of job crafting on employee motivation and performance. You can see that job crafting is expected to change the way employees perceive their jobs. It should also result in more positive attitudes about the job, which is expected to increase employee motivation, engagement, and performance. Preliminary research supports this proposition.99 Computer accessories maker Logitech Inc. successfully implemented a job crafting pilot program. Jessica Amortegui, senior director of learning and development, said, “The company hopes helping employees find more intrinsic motivation in their work will be a powerful hiring draw. Logitech plans to begin using the [program] with all 3,000 of its workers.”100 Given that job crafting can lead to higher levels of engagement and satisfaction, you may be interested in understanding how you can apply the technique to a former, current, or future job. The Self-Assessment 5.3 explores the extent to which you are applying job crafting to reduce job demands, seek resources, or seek challenges. TABLE 5.2 Forms of Job Crafting CHANGES IN APPROACH EXAMPLE CHANGES IN RESULTS Task boundaries: Number, scope, and type of job tasks. Design engineers engage in relational activities that move a project to completion. Engineers are now guardians or movers of projects; they complete work in a more timely fashion. Relational nature: Quality and/or amount of interaction with others encountered in a job. Hospital cleaners actively care for patients and families and integrate themselves into the workflow of their floor units. Cleaners are now helpers of the sick; they see the work of the floor unit as a vital part of an integrated whole. Cognitive crafting: Perception of or thinking about tasks and relationships in your job. Nurses take responsibility for all information and “insignificant” tasks so they can care more appropriately for a patient. Nurses are now patient advocates; they provide high- quality, technical care. SOURCE: Wrzesniewski, Amy, and J. E. Dutton. “Crafting a Job: Revisioning Employees as Active Crafters of Their Work.” Academy of Management Review 26, no. 2 (2001): 179–201. https://DOI: 10.2307/259118. Organizational Behavior: A Practical, Problem-Solving Approach 191Foundations of Employee Motivation CHAPTER 5 Idiosyncratic Deals (I-Deals)— You Negotiate the Design of Your Job The last approach to job design, idiosyncratic deals, represents a middle ground between top-down and bottom-up methods and attempts to overcome their limitations. For example, top-down approaches are constrained by the fact that managers cannot always create changes in task characteristics that are optimal for everyone. Similarly, job crafting is limited by the amount of latitude people have to change their own jobs. Idiosyncratic deals (i-deals)  represent “employment terms individuals negotiate for themselves, taking myriad forms from flexible schedules to career develop- ment.”101 Although “star performers” have long negotiated special employment con- tracts or deals, demographic trends and the changing nature of work have created increased opportunities for more employees to negotiate i-deals. I-deals tend to affect task and work responsibilities, schedule flexibility, location flex- ibility, and compensation.102 The goal of such deals is to increase employee intrinsic moti- vation and productivity by allowing employees the flexibility to negotiate employment relationships that meet their own specific needs and values. RSM promotes and encour- ages the creation of i-deals among its more than 9,600 employees. The focus of its program is to create innovative and flexible ways of working.103 This relatively new approach to job design has begun to generate much research. Results confirm that i-deals are associated with higher perceived organizational support, job satisfac- tion, and perceived voice. Employees also are less likely to quit when they negotiate i-deals.104 Future study is needed to determine the generalizability of these encouraging results. Consider how you might one day create an i-deal for yourself. Self-Assessment 5.4 will help you think through the process. Creating an I-Deal Please be prepared to answer these questions if your instructor has assigned Self-Assessment 5.4 in Connect. 1. What are your strengths and weaknesses in terms of creating an i-deal? 2. Assume you are applying for a job after graduation and you want to create an i-deal. What do your results suggest that you should discuss with your potential employer? SELF-ASSESSMENT 5.4 To What Extent Have I Used Job Crafting? Please be prepared to answer these questions if your instructor has assigned Self- Assessment 5.3 in Connect. 1. What are your strengths and weaknesses in terms of job crafting? 2. Were you happy in the job under consideration? 3. Do you think the average employee can affect all the suggestions measured in the survey? Explain. SELF-ASSESSMENT 5.3 Organizational Behavior: A Practical, Problem-Solving Approach 192 PART 1 Individual Behavior Takeaways for Me Here are five things you can do to turn this chapter’s lessons into positive change in your personal and professional life. 1. Identify the needs that are important to you today, recognizing they may change over time: This can help you identify the type of work you would like to do before and after graduation. 2. If your current job is low on hygiene or motivating factors, reflect on what you can do to change this situation: You may be able to create change by talking to your boss, asking for new work assignments, or getting a different job. 3. Festering feelings of inequity are not good for you or those you interact with on a regular basis: Make a plan to correct any feelings of inequity that exist in your life. 4. Set specific, measurable goals for things you want to accomplish in your life: Develop an action plan that outlines the path to success, then be sure to reward yourself for accomplishing the goals. 5. If your current job is unfulfilling, try to find ways to incorporate job crafting or i-deals into your work: If this doesn’t work, you might consider changing jobs. Takeaways for Managers There are seven key implications for managers. 1. Recognize that intrinsic motivation can have longer-lasting effects than extrinsic motiva- tion: Try to build Herzberg’s motivators into employees’ work experiences. 2. Acknowledge that needs drive employee motivation: Find a way to determine employee needs, such as employee surveys or one-on-one meetings. 3. Because some needs are innate, consider people’s needs when they are first hired: Vali- dated tests exist that will identify these needs. 4. Uncover employees’ perceptions about equity and justice: Then correct any deficiencies by administering employee surveys or exit interviews. 5. Incorporate the principles of expectancy theory: By ensuring employees believe they can accomplish their goals and linking performance to rewards that individual employees value. 6. Work with employees to set challenging yet attainable goals and then establish action plans: Be sure employees have the resources they need to achieve these goals. 7. Consider different ways to design jobs: Doing so will ensure that jobs foster intrinsic motivation and meaningfulness. Describe the implications of employee motivation for you and managers. LO 5-5 THE BIGGER PICTURE Motivation explains why we do the things we do and is an important process that affects behavior in both our personal and professional lives. Here are some key points to consider. 5.5 MAKING THE CONNECTION: HOW CAN I APPLY MOTIVATION THEORIES? Organizational Behavior: A Practical, Problem-Solving Approach 193Foundations of Employee Motivation CHAPTER 5 You learned that motivation, a key individual-level process, is influenced by inputs such as needs, perceptions of justice, expectancies and instru- mentalities, goals, and job design. You learned how various theories and models of motivation can be applied by managers to improve multiple outcomes. Reinforce your learning with the Key Points below. Consolidate your learning using the Organizing Framework. Then challenge your mas- tery of the material by answering the Major Ques- tions in your own words. Key Points for Understanding Chapter 5 You learned the following key points. 5.1 THE WHAT AND WHY OF MOTIVATION • There are two types of motivation: intrinsic and extrinsic. • Extrinsic motivation results from the potential or actual receipt of external rewards. • Intrinsic motivation is driven by positive inter- nal feelings generated by doing well. 5.2 CONTENT THEORIES OF MOTIVATION • Content theories are based on the idea that an employee’s needs influence motivation. There are five key content theories. • Douglas McGregor proposed a theory of motivation based on two opposing views of employees. Theory X people believe employ- ees dislike work and are motivated by rewards and punishment. Theory Y people believe employees are self-engaged, commit- ted, and responsible. • Abraham Maslow proposed that motivation is a function of five basic needs—physiological, safety, love, esteem, and self-actualization— arranged in a prepotent hierarchy. • David McClelland’s acquired needs theory is based on the idea that motivation is a function of three basic needs: achievement, affiliation, and power. • Self-determination theory assumes that three innate needs influence motivation: compe- tence, autonomy, and relatedness. • Frederick Herzberg’s motivator-hygiene the- ory is based on the premise that job satisfac- tion comes from motivating factors and dissatisfaction from hygiene factors. 5.3 PROCESS THEORIES OF MOTIVATION • Process theories attempt to describe how various person factors and situation factors affect motivation. • Equity theory explains how people strive for fairness and justice in social exchanges. Fair- ness or equity is determined by comparing our outputs and inputs with those of others. • Three key types of justice are distributive, procedural, and interactive. • Expectancy theory assumes that motivation is determined by our perceived chances of achieving valued outcomes. The three key elements of this theory are expectancies, instrumentalities, and valence of outcomes. • Goal-setting theory proposes that goals affect performance because they (1) direct our attention, (2) regulate effort, (3) increase per- sistence, and (4) encourage the development of action plans. 5.4 MOTIVATING EMPLOYEES THROUGH JOB DESIGN • Job design theories are based on the idea that motivation is primarily influenced by the tasks people perform and the characteristics of the immediate work environment. • Three broad approaches to job design are top-down, bottom-up, and emerging. • The premise of top-down approaches is that management is responsible for creating effi- cient and meaningful combinations of work tasks for employees. Top-down approaches What Did I Learn? Organizational Behavior: A Practical, Problem-Solving Approach 194 PART 1 Individual Behavior You can also see that there are more situational than personal factors influencing motivation. This underscores the importance of leadership and cre- ating a work environment that reinforces voice and justice. Figure 5.11 further illustrates that motiva- tional processes affect outcomes across the indi- vidual, group/team, and organizational levels. Challenge: Major Questions for Chapter 5 You should now be able to answer the following questions. Unless you can, have you really pro- cessed and internalized the lessons in the chapter? Review relevant portions of the text and your notes to answer the following major questions. With Figure 5.11 as your guide, look for inputs, processes, and outputs specific to each: 1. What is motivation and how does it affect my behavior? 2. How would I compare and contrast the con- tent theories of motivation? 3. How would I compare and contrast the pro- cess theories of motivation? 4. How are top-down approaches, bottom-up approaches, and “idiosyncratic deals” similar and different? include scientific management, job enlarge- ment, job rotation, job enrichment, and the job characteristics model. • Bottom-up approaches, also referred to as job crafting, are driven by employees rather than managers. Employees create their own job boundaries. • Emerging approaches include idiosyncratic deals (i-deals). This approach views job design as a process in which employees and managers jointly negotiate the types of tasks employees complete at work. 5.5 HOW CAN I APPLY MOTIVATION THEORIES? • Identifying needs important to you helps pinpoint the type of work you might find meaningful. • Talking with your boss about possible changes in work activities may increase your motivation to perform at a higher level. • Setting specific, measurable goals in your personal life and career help keep you focused and moving forward. The Organizing Framework for Chapter 5 As shown in Figure 5.11, both person and situa- tion factors influence the process of motivation. FIGURE 5.11 Integrative Framework for Understanding and Applying OB ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. INPUTS PROCESSES OUTCOMES Person Factors • Personality • Personal attitudes • Values—Theory X/Y • Needs Situation Factors • Hygiene factors • Motivating factors • Job characteristics • Job design • Leadership • Organizational climate Individual Level • Equity/justice • Expectancy processes • Goal-setting processes • Voice Group/Team Level • Climate for justice Organizational Level • Climate for justice Individual Level • Intrinsic and extrinsic motivation • Task performance • Work attitudes • Citizenship behavior/counter- productive behavior • Turnover Group/Team Level • Group/team performance Organizational Level • Customer satisfaction Organizational Behavior: A Practical, Problem-Solving Approach 195Foundations of Employee Motivation CHAPTER 5 Across the globe at over 175 fulfillment centers, more than 125,000 workers frantically “pick, pack, and ship millions of Amazon.com customer orders to the tune of millions of items per year.”105 Amazon’s innovations, like free 2-day shipping for Prime members, dash but- tons, and in-home delivery, have made the retail giant a standout in customer service. The company has con- sistently received award-winning customer satisfaction ratings.106 Amazon became the most valuable public company and second largest e-commerce company in the world in 2019 by being hyper-focused on customer experiences.107 But many of Amazon’s fulfillment center workers are unhappy with what they are required to do to assure these esteemed customer experiences.108 The result has been public outcry, boycotts, poor attitudes and health, and extremely high turnover rates among work- ers. What’s making employees so miserable inside Amazon fulfillment centers? WORKING AT AN AMAZON FULFILLMENT CENTER Amazon designs its fulfillment center jobs for effi- ciency, with managers constantly monitoring and track- ing employees in three primary areas. First, workers are monitored for productivity as they race to fill as many orders as possible to meet or exceed daily quo- tas. Those who don’t meet their quotas are written up, and excessive write-ups can lead to termination.109 A recent undercover investigation revealed that some employees are so fearful of missing their quotas that they forego taking necessary bathroom breaks and instead urinate in bottles and trash cans inside the warehouses.110 The company is so dedicated to its productivity goals that workers reportedly don’t speak to one another during their shifts, saying that manag- ers strongly discourage any kind of camaraderie.111 Second, management monitors fulfillment center workers for security purposes. One employee described the environment as resembling a prison, noting time-consuming scans for contraband (e.g., sun- glasses, phones, hoodies) and stolen items at the beginning and end of shifts.112 There’s also a custom of publicly shaming employees who steal from the company on flat-screen TVs and bulletin boards around the warehouses.113 Third, fulfillment center managers track employee attendance. Workers can be fired for excessive missed work days, or, as Amazon calls it, going into negative unpaid time off (UPT). Employees have reported being so terrified of missing work that they show up even when they are too sick or injured to work safely, in spite of the extremely physically demanding nature of the job.114 HOW DOES AMAZON ATTRACT FULFILLMENT CENTER WORKERS? How is it that news of a new Amazon fulfillment center is still seen as cause for celebration, given what has been reported about working conditions? Employment opportunities are one key explanation. The company tends to locate fulfillment centers on the outskirts of major metropolitan areas, often in regions that have yet to recover from the recent economic recession and are desperate for increased jobs.115 In other words, if Amazon opens a fulfillment center in your town, chances are your employment prospects will be better than those you’ve got right now. Even so, many Amazon fulfillment center employees feel the compensation they receive is not commensu- rate with the extreme working conditions and job demands. Worker retention thus seems to be a function of a lack of viable alternatives rather than positive employee attitudes toward the company. As one worker stated, “that’s what makes people not want to quit—the pay” . . . “you can treat me any type of way, since this is the best money we can get out here . . . ”116 Amazon does provide some additional incentives to increase productivity at its fulfillment centers. For example, managers often hold competitions that reward employees with “swag bucks”—tokens to spend inside the warehouse on things like t-shirts, water bottles, or cafeteria meals.117 Other rewards reportedly include small gift cards and even cookies. Said one employee, “I don’t want a cookie or a gift card. I’ll take it, but I’d rather a living wage. Or not being timed when you’re sitting on the toilet.”118 Another worker found these incentives insulting, saying that “around this time of year the managers, if their targets are met or exceeded, they get a bonus.”119 Amazon implemented a policy guaranteeing a mini- mum wage of $15 per hour after receiving such nega- tive attention in the press. This resulted in raises as small as 25 cents per hour, which many viewed as “damage control.”120 For some tenured workers, the PROBLEM-SOLVING APPLICATION CASE  Workers at Amazon Are Not Feeling Motivated Organizational Behavior: A Practical, Problem-Solving Approach 196 PART 1 Individual Behavior protagonist’s perspective. Identify the perspec- tive from which you’re defining the problem—is it the perspective of Amazon or its workers? C. Use details in the case to identify the key prob- lem. Don’t assume, infer, or create problems that are not included in the case. D. To refine your choice, ask yourself, Why is this a problem? Explaining why helps refine and focus your thinking. Focus on topics in the current chapter, because we generally select cases that illustrate concepts in the current chapter. STEP 2: Identify causes of the problem by using material from this chapter, summarized in the Organiz- ing Framework shown in Figure 5.11. Causes will appear in either the Inputs box or the Processes box. A. Start by looking at Figure 5.11 to identify which person factors, if any, are most likely causes to the defined problem. For each cause, ask, Why is this a cause of the problem? Asking why mul- tiple times is more likely to lead you to root causes of the problem. B. Follow the same process for the situation factors. C. Now consider the Processes box in Figure 5.11. Consider concepts listed at all three levels. For any concept that might be a cause, ask yourself, Why is this a cause? Again, do this for several iterations to arrive at root causes. D. To check the accuracy or appropriateness of the causes, be sure to map them onto the defined problem. STEP 3: Make recommendations for solving the problem. Consider whether you want to resolve it, solve it, or dissolve it (see Section 1.5). Which recom- mendation is desirable and feasible? A. Given the causes identified in Step 2, what are your best recommendations? Use the content in Chapter 5 or one of the earlier chapters to propose a solution. B. You may find potential solutions in the OB in Action boxes and Applying OB boxes within this chapter. These features provide insights into what other individuals or companies are doing in relationship to the topic at hand. C. Create an action plan for implementing your recommendations. new policy meant their wages became compressed and they lost important benefits they previously received, such as stock options and bonus opportunities.121 WHAT’S NEXT? Stacy Mitchell, co-director of the Institute for Local Self- Reliance, said, “There’s this way in which Amazon’s warehouses are perceived to be a good thing for a community, but that’s only because the context in which they are being proposed and built is so devoid of better opportunities.” Said a current employee, “They’re walk- ing a fine line in the community—everybody knows someone who’s worked there, and no one says it’s a good place to work.”122 Some Amazon workers have attempted to generate interest in union representation but have been unable to gain the momentum necessary for an organizing campaign. This is likely due to two main causes. First, the fact that Amazon has one of the highest turnover rates in the United States means that employees aren’t around long enough for a movement to take shape. Second, workers have expressed they are afraid to speak up and participate in organizing campaigns for fear of retaliation from the company.123 It’s unlikely we’ll see any sweeping changes to the way Amazon manages its fulfillment center workers in the near future. This is because Amazon already loses money on e-commerce and subsidizes the losses with other segments of its business. Any changes to the current state of affairs could mean a loss of our cov- eted cheap wares and free two-day shipping.124 APPLY THE 3-STEP PROBLEM- SOLVING APPROACH TO OB STEP 1: Define the problem. A. Look first at the Outcome box of the Organizing Framework in Figure 5.11 to help identify the important problem(s) in this case. Remember that a problem is a gap between a desired and a current state. State your problem as a gap and be sure to consider problems at all three levels. If more than one desired outcome is not being accomplished, decide which one is most impor- tant and focus on it for steps 2 and 3. B. Cases have protagonists (key players), and problems are generally viewed from a particular Organizational Behavior: A Practical, Problem-Solving Approach 197Foundations of Employee Motivation CHAPTER 5 LEGAL/ETHICAL CHALLENGE Should Senior Executives Receive Bonuses for Navigating a Company through Bankruptcy? Consider the case of Sears Holdings, which filed for bankruptcy protection in October 2018. The company closed several hundred stores in recent years and cut over 50,000 jobs between January 2017 and March 2018.125 Still, Sears sought and received approval to pay up to $25.3 million in bonuses for key executives and other employees.126 Does this seem appropriate from a justice or expectancy theory perspective? A federal law was established in 2005 to restrict companies from paying bonuses to executives before and during a bankruptcy process. The law does allow for companies to dole out executive bonuses while simultaneously seeking bankruptcy protection, but only in cases where companies are seeking to rebound and could thus be irreparably harmed by the loss of key executives.127 In the case of Sears, a judge ruled that the bonuses were legal because they were tied to the company meeting specific financial milestones.128 U.S. bankruptcy trustee William Harrington formally objected to the bonus proposal saying that “the bonuses do not feel like an effort to retain top talent through a difficult period, but a final extraction of cash before the ship sinks.”129 The practice of giving bonuses to senior executives who navigate a company through bankruptcy is quite common. A Wall Street Journal study of 12 of the 100 biggest corporate bankruptcies revealed that CEOs from these firms were paid more than $350 million in various forms of compensation. “Over the past few years, fights have erupted during a handful of Chapter 11 bankruptcy cases,” the newspaper reported. “The central argument has been over whether companies are adhering to federal laws when giving their executives the extra pay.” While judicial decisions regarding this issue have been mixed, con- sider the ethics of paying executives large bonuses when laying off workers, closing plants, and eliminat- ing health care and retirement benefits to retirees.130 Does this seem fair or just? Finding Answers to Solve the Challenge Is it ethical to pay these bonuses? Respond to each of the following options. 1. Yes. Navigating a company through bankruptcy is hard work and requires hard decisions. Execu- tives at Sears, for example, are expected to earn those bonuses by staying with the company to shepherd it through tough times, helping to turn it around. 2. Yes, if all employees receive some sort of bonus for staying through a bankruptcy process. In other words, executives should be paid the same as other surviving employees. If everyone took a 10 percent pay cut or gets a 10 percent bonus, so should executives. What’s fair for one is fair for all. 3. Absolutely not. It just is not right to close stores, displace employees, and eliminate retirement benefits while simultaneously giving executives hefty bonuses. What is your ideal resolution to the challenge? Organizational Behavior: A Practical, Problem-Solving Approach LO 6-1 Summarize the elements of effective performance management. LO 6-2 Explain how and why goal setting gives you an advantage. LO 6-3 Describe how monitoring and evaluation can improve your performance and ability to manage others. LO 6-4 Apply knowledge of feedback and coaching to review and improve performance. LO 6-5 Implement rewards to generate desired outcomes. LO 6-6 Use reinforcement and consequences to improve performance. LO 6-7 Describe the implications of performance management for you and managers. After reading this chapter, you should be able to: Performance Management6 C ai a Im ag e/ Im ag e So ur ce Organizational Behavior: A Practical, Problem-Solving Approach 199Performance Management CHAPTER 6 FIGURE 6.1 Organizing Framework for Understanding and Applying OB ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. INPUTS PROCESSES OUTCOMES Person Factors Situation Factors • Competition, Regulators, and Leadership Individual Level • Performance management practices Group/Team Level Organizational Level • Leadership Individual Level • Task performance • Work attitudes • Well-being/flourishing • Citizenship behavior/ counterproductive behavior • Turnover • Career outcomes • Creativity Group/Team Level • Group/team performance • Group satisfaction • Group cohesion and conflict Organizational Level • Survival • Accounting/financial performance • Customer satisfaction • Reputation Figure 6.1 summarizes what you will learn in this chapter. The main focus is perfor- mance management, which we position as an individual process in the Organizing Framework for Understanding and Applying OB. It could easily be considered a group- or organizational-level process, but we put it at the individual level because it is the performance of individuals that determines the performance of groups and organiza- tions. Performance management is an umbrella phrase that includes a number of important OB concepts, such as goal setting, performance measurement and apprais- als, feedback, and rewards. Performance management therefore is an especially important topic in OB. Organizational Behavior: A Practical, Problem-Solving Approach Winning at Work Busy vs. Productive—Productive Wins and boost productivity during the time you’re on task. Some research suggests that 90-minute intervals of work are best. This means you should set a plan for what you’ll accomplish in 90 minutes, then take a break. A se- ries of intense, focused, and energized intervals is more productive than long stretches of uninterrupted work.3 5. Eat the frog. This phrase was famously used by a re- nowned sales trainer, Brian Tracy, which means do the most undesirable item on your to-do list first, at the be- ginning of the day. Thus it doesn’t get postponed, your least desirable task is finished, making the rest of your day that much better.4 6. Not always yes. Busy people arguably say “yes” too often, but productive people say “yes” more judi- ciously. When approached or invited to participate in something that is voluntary, instead of deciding say: “Thank you for the opportunity, but do you mind if I consider it overnight and get back in touch?” Most will see this as acceptable, and then you have the opportunity to consider your other commitments, determine the fit of your skills to the task, and of course consider the impact you can make before deciding and giving your answer.5 Many people are busy but far fewer are productive. Given that everyone has the same number of hours in a day, one way to beat the competition is to spend your time more productively than others. We assembled the following col- lection of best practices to help make you more productive, which should in turn Improve your job performance and career opportunities. 1. Learn how you spend your time. Create a time log by tracking your time and the way you spend it for two or three days to capture the things you commonly do. Ideally, you’ll pause every hour or two and record how much time you’ve spent on particular tasks. If this isn’t feasible, then be sure you record your time twice in the morning, twice in the afternoon, and once in the evening.1 (Note: You cannot accurately document the entire day at the end. This doesn’t work so don’t even try.) When you have two or three days recorded, add up the time you spent on various tasks. Identify the three activities that consume the greatest amounts of your time. It is especially useful to determine how much time you spend on social media, e-mailing, tex- ting, playing games, and surfing the web, then, deter- mine how much of this effort is really related to school and/or work. You’ll likely be shocked, and if so this will hopefully motivate you to use your time more wisely. 2. Never touch things twice. This means you should never put tasks in a holding pattern.2 If you open an e-mail, for instance, and then decide to respond later, you will have to look at it at least one more time. This advice also applies to phone calls and other items on your to-do list. You need to decide the first time you touch it—take action now, delegate it, or delete it. At first you may think this isn’t possible. But being deci- sive is key to increasing productivity. You may have to do some less desirable or even undesirable tasks im- mediately instead of putting them off. Or you’ll have to figure out how to do certain things, like texting, only at certain times of the day. 3. Schedule e-mail, text, and phone time. Turn off notifications—all of them. Then set specific times in the day when you’ll check and tend to other distracting tasks. For instance, you are wise to always look at and respond to e-mail in the same space of time, such as at 11:00 each morning and 4:00 each afternoon. When the phone rings, you don’t have to answer it. If it’s important the caller will leave a message, which you can listen to during the time you’ve allocated. Set times for particular tasks and stick to them. 4. Take regular breaks. Recharging with a walk, music, or a brief chat has been shown to improve your concentration What’s Ahead in This Chapter Performance management encompasses many of the topics and tools you’ve learned thus far. In many ways this chapter serves as a summary. And in other ways it serves as a rationale for taking the course. If you want to know why OB is important, and why its theories, models, and tools matter, the answer comes down to improving performance at all three levels of OB—individual, team, and organizational. The discussion in this chapter focuses on several of the critical components of effective performance management: goal setting, feedback, rewards, and reinforcement. To effectively manage performance, managers and organizations need to identify and communicate clear expectations or goals, monitor and provide feedback regarding progress toward these goals, and then link and deliver appropriate consequences (rewards) for goal achievement. We highlight how performance management serves as a powerful tool for motivating, developing, and retaining talent. We hope you will appreciate why effective performance management policies and practices often dramatically affect many aspects of your work life. Organizational Behavior: A Practical, Problem-Solving Approach 201 THE BIGGER PICTURE Performance management occurs in many arenas of your life, notably school and work. Because it is a process that generates grades at school and pay and promotions at work, it is important to understand how it works. You’ll learn why performance management is one of the most critical and far-reaching processes in the Organizing Framework. You’ll see why opinions about the usefulness and effectiveness of performance management practices are often negative. However, you’ll also learn how performance management practices can be beneficial, such as by helping signal and reinforce desired behaviors and outcomes across all levels of OB. 6.1 PERFORMANCE MANAGEMENT PROCESSES This chapter focuses on improving individual job performance, notably yours, as well as on your ability to improve the performance of others. To do this, you need to draw on and apply many of the concepts and tools you’ve learned thus far, such as hard and soft skills, personality, perceptions, and of course, motivation. The integration and application of this knowledge for the purposes of improved outcomes is called performance management.  Performance management  (PM) is a set of processes and managerial behaviors that include defining, monitoring, measuring, evaluating, and providing conse- quences for performance expectations.6 Defined in this way, PM is far more than per- formance appraisal. Appraisals typically consist only of the actual performance review, an event. Effective PM, in contrast, is a continual process and a critically important individ- ual-level process of which appraisals are a subset.7 Performance management typically operates through an organization’s managers and human resources policies and practices. You will learn how it affects outcomes across all levels in the Organizing Framework, such as individual (job satisfaction, OCBs, and turnover), team (cohesiveness, conflict, and performance), and organizational (reputation, performance, survival, innovation, and employer of choice). But before we dive in, it is helpful to frame exactly what is in store with a quote from Elaine Pulakos, a renowned PM expert and CEO of PDRI, a leading human resource development consulting company, and her colleagues who described it this way: “No other talent management system has been the subject of such great debate, change, and emotion as PM.”8 This means you’ll learn about the good, the bad, and the ugly of this important individual-level process. Effective Performance Management As illustrated in Figure 6.2, effective PM has four components: 1. Defining performance. 2. Monitoring and evaluating performance. 3. Reviewing performance. 4. Providing consequences. Please note the double-headed arrows. They signify the systems part of PM, which means the various components affect each other. How performance is defined Summarize the elements of effective performance management. LO 6-1 Performance Management CHAPTER 6 Organizational Behavior: A Practical, Problem-Solving Approach 202 PART 1 Individual Behavior (Component 1) obviously impacts how it is measured (Component 2), at least it should, but how it is measured helps refine the performance expectations themselves. Successfully managing performance is a powerful means for improving individual, group/team, and organizational effectiveness. Effective performance management influ- ences important outcomes such as greater employee engagement and better organizational performance.9 Managers who practice effective performance management generate excep- tional results compared to those who don’t: • 48% higher profitability. • 22% higher productivity. • 30% higher employee engagement scores. • 17% higher customer engagement scores. • 19% lower turnover.10 Common Uses of Performance Management Most performance management systems have six primary outputs and functions. 1. Performance ratings. High, low, better, or worse than before or others. 2. Feedback. Generating the content and delivering it. 3. Development and performance improvement plans. Underperformers need to improve or be moved out. 4. Career planning. Linking expectation and performance to increased responsibilities. 5. Recommendations for employee-related decisions. Rewards, promotions, training, or termination. 6. Documentation for legal purposes. Sound decisions need appropriate supporting data.11 Component 1: Define Performance Set goals and communicate performance expectations. Component 3: Review Performance Deliver feedback and coaching. Component 2: Monitor & Evaluate Performance Measure and evaluate progress and outcomes. Component 4: Provide Consequences Administer valued rewards and appropriate punishment. FIGURE 6.2 Effective Performance Management System SOURCE: Kinicki, Angelo J., Kathryn J. L. Jacobson, Suzanne J. Peterson, and Gregory E. Prussia. “Development and Validation of the Performance Management Behavior Questionnaire.” Personnel Psychology 66, no. 1 (Spring 2013): 1–45. https://doi.org/ 10.1111/peps.12013. Organizational Behavior: A Practical, Problem-Solving Approach 203Performance Management CHAPTER 6 The extent to which organizations effectively practice performance management can have enormous impact on outcomes across all levels. This greatly impacts your personal oppor- tunities, job satisfaction, engagement, and turnover among other aspects of your career. That said, only 3 percent of PM studies since the early 2000s investigated career planning.12 What does this mean for you? It means researchers likely aren’t the ones offering the best insights for your career planning and this is why we draw on insights from career coaches, counselors, and other professionals. See the following Applying OB box for an example. Applying OB Note: You’ll be far more likely to achieve each of the goals above if you apply the SMART and other goal setting tools explained later in this chapter. 3. Action plans for each goal. Most good plans con- tain who, what, where, when, and how. Be sure you at least consider all of these elements for each goal in #2. 4. Implement. If you do the previous steps correctly and thoroughly this should be clear. It is of course helpful if you practice, consult a coach, or at least get advice from appropriate others. Informational interviews or shadowing someone for a day can be immensely helpful. 5. Review, revise, and re-engage. Like effective per- formance management, you need to review your progress and outcomes. Don’t focus only on the outcomes but monitor your progress as well. Did you implement the plan you created, did you do it on time, and what did you learn along the way? Use this information to revise your plan and get back to it! Although most people have desires, wishes, and pref- erences for their jobs and careers, and most also set a goal or two from time to time, such as to get a raise or a promotion, relatively few people make career plans. The four components of performance management can serve as a useful guide to career planning, and this begins with goal setting. 1. Set long-term goals. It is good to start far into the future, at least as far as you can reasonably think, such as 10 years, when you’re 30, or some other marker. I want to get: _____ by (date) _____. I will need these skills: a, b, and c. Which require the following experiences: 2. Break these into shorter-term goals. Think of these as steps along the way to the long-term goal noted above. Take each skill, for instance, and determine the necessary sub-goals and steps to achieve them.13 Apply Goal Setting to Your Job and Career What Goes Wrong with Performance Management Volumes of research and employee surveys report that the majority of managers and orga- nizations do a poor job of managing employee performance. According to extensive research done by Gallup: • 20% of employees feel their performance is managed in a way that motivates them. • 29% perceive their employers’ PM system as fair. • 26% agree they are accurate.14 • Less than 40% of employees say their systems do not provide clear goals or generate honest feedback.15 • 66% of employees say it actually interferes with their productivity. • 58% of 576 HR executives surveyed graded their company’s performance manage- ment systems as a C or worse.16 CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 204 PART 1 Individual Behavior These unfortunate perceptions raise the question: Why do companies often do so poorly with performance management? The most common reasons employees feel performance management doesn’t measure up are: Feedback is rare. You will learn much more about feedback later in the chapter, but the most fundamental problem is that feedback is in frequent. If your performance is reviewed only once a year, as is still common, there’s little chance that feedback shared will in any way be linked to the behaviors that produce the performance. Moreover, unless the person providing the feedback has a photographic memory its accuracy may be questionable. Lack of clarity on how to improve. The various scores and rankings provide little detail or guidance on how to actually improve. For example, if you rated on a 1 to 5 scale, strongly disagree to strongly agree, how do you really translate that into actionable performance improvement? This highlights that everyone is rated using the same scale, yet we know not all jobs and employees are the same. Manager bias. As you learned in Chapter 4, biases are very real and can be especially problematic in the context of PM. Nothing undermines the effectiveness of a PM system faster than a lack of perceived fairness. Making matters worse, many manag- ers do not really understand the responsibilities of the jobs they are reviewing, which makes the process difficult and the outcomes suspect. Negative reactions. Due to the above and other reasons, employees often react very negatively. This is no surprise. Such reactions can undermine motivation and if the review occurs only once a year, then it can take a long time for you to recover. Too much focus on pay and incentives. The performance evaluation component of PM is often linked to rewards (consequences), which means any issues you may have with the process are likely to impact these important individual level outcomes. Moreover, the hyper-focus on pay can blind you to the developmental aspects of an otherwise fair and constructive review.17 The meeting in this photo is typical of many performance reviews: Once a year a manager and a subordinate sit on opposite sides of a table, the manager does most of the talking, both are uncomfortable, and each walks away less than happy with the results. This chapter will help you understand how and why you and your managers can do better. Chris Ryan/OJO Images/age fotostock Organizational Behavior: A Practical, Problem-Solving Approach 205Performance Management CHAPTER 6 Pervasive poor views of performance management practices have led many notable companies including Accenture, Netflix, Microsoft, GE, and Eli Lilly to scrap their old practices.18 The following OB in Action box illustrates how Deloitte has tackled the chal- lenges of performance management. As part of a renewed commitment to developing its high-caliber workforce, Deloitte made a $100 million investment in The Leadership Center (called Deloitte University). In the process it reviewed the role played by its performance management practices. The internal review and research revealed two things. First, performance, retention, and client satis- faction were all better when employees felt they were playing to their strengths in their jobs.19 Sec- ond, current PM practices were interfering. The com- pany then embarked on a dramatic transformation of its practices, and its new approach is as interesting for what it excludes as for what it includes. Gone are once-a-year performance reviews, 360-degree feed- back tools, and cascading goals.20 Included are the four components of effective performance manage- ment outlined above and described below. Key Elements of Deloitte’s Approach 1. Setting Goals and Objectives. Like its many clients, Deloitte has objectives, financial and otherwise, it must achieve. All are important and consequential for employees. However, instead of being set centrally by senior man- agement and cascading down through the organization, goals are now set per client, per team, per employee. This means that goal setting and expectations are much more local and are handled by team leaders, rather than global and done by senior executives at headquarters. 2. Monitoring and Measuring Performance. The company still tracks and measures performance, but now it does so in the form of Snapshots. These are questions each team leader answers for each team member, whether quarterly, monthly, at the end of a project, or at any other meaningful point. Instead of ranking the team member, leaders indicate to what extent they agree with statements like, “Given what I know of this person’s performance, I would always want him or her on my team,” “This person is at risk for low performance,” and “If it were my money, I would award this person the highest possible compensation increase in bonus.”21 3. Reviewing Performance and Providing Feedback. Performance reviews and feed- back happen not once or twice a year but at regular check-ins. Check-ins are one-on-one, real-time discussions between team leaders and their team members. Their purpose is to discuss progress, expectations, feedback, and any other relevant details related to current or near-term work. The rationale is that perfor- mance is driven through conversations, and check-ins give frequent opportunities for man- agers and employees to meet and talk. Check- ins are not mandated or tracked. Deloitte simply prompts all employees via periodic e-mails that ask, “Did you have a check-in conversation with your team leader this week? Yes or No.”22 Snap- shot responses are aggregated every quarter, and HR reviews and discusses the results with business leaders. Along with other metrics, such as revenue per employee, Snapshots give lead- ers a more holistic and timely view of individual and unit performance. 4. Rewarding Performance. Snapshots provide regular and ongoing opportunities to recognize and correct performance, and the quarterly reviews provide yet another opportunity. All of this culminates in annual compensation decisions, which are now based on a wealth of information consistently captured throughout the year. YOUR THOUGHTS? 1. From an employee’s perspective, what do you think are some of the pros and cons of Deloitte’s PM system? Explain. 2. Assuming you are a team leader at Deloitte, describe one benefit and one challenge of the PM system for you. 3. What do you think are the major challenges in implementing Deloitte’s new PM practices? The Deloitte Way: “Snapshots” and “Check-ins” OB in Action Organizational Behavior: A Practical, Problem-Solving Approach 206 PART 1 Individual Behavior Given the still largely negative views of PM practices and outcomes, what are enlight- ened and successful individuals and organizations doing to improve PM? Contemporary PM Is Continual The starting point and the fundamental problem to overcome is that most organizations and their managers treat PM as a bureaucratic chore, a box to be checked, rather than treating it as a critically important and continuing development process.23 For instance, Gallup recommends reframing the entire system as progress improvement and highlights three qualities that make PM more effective: • Establish expectations that are clear, collaborative, and aligned. Of course, clarity is important, but as you’ll learn later in the chapter there are benefits to you being involved in setting goals, including performance goals. And it is nothing new to say it is important to align employees’ goals with those of the organization, but research underscores the importance of doing so. Companies with effective PM ensure this alignment happens. • Continually coach. Annual or quarterly reviews fall far short of continual. You’ll learn more about feedback later, but even the best feedback is of little value only once a year. You accomplish tasks every day at work, encounter challenges regularly, which means you’d likely benefit from more frequent feedback and coaching. • Create accountability. Besides being critical to performance, accountability is what gives value to goals and coaching. You’ll learn many different ways to hold people accountable throughout this course, and whatever you choose it is important to ensure the means are achievement-oriented, fair and accurate, and developmental.24 Johnson and Johnson (J&J), the behemoth consumer products company, tried a more contemporary program in which employees, peers, and bosses used an app to provide real- time feedback. The initial uptake was slow, but when the company offered training to show managers the benefits of effective feedback nearly 50 percent of managers participated and approximately 3,000 pieces of feedback were shared.25 The new approach was real-time and linked behaviors, outcomes, and feedback, as well as providing numerous and timely opportunities for coaching. Now that you have a general understanding of the performance management process and its importance, let’s take a closer look at how to define performance expectations and goals. Organizational Behavior: A Practical, Problem-Solving Approach 207Performance Management CHAPTER 6 It makes sense that improving goal setting is a way to boost both your own perfor- mance and your ability to manage the performance of others. But once again, com- mon sense is not common practice. Let’s make this personal. Do you set goals? Do you write them down? Do you revisit and revise them periodically? If you answered yes to all three then you are truly exceptional! But the fact is that even those that consider themselves goal- setters rarely do a good job of it, and the same can be said for organizations. According to Gallup’s “State of the American Manager” report, only 12 percent of employees strongly agreed that their manager helps them set performance goals.26 To improve your own goal setting, let’s begin by differentiating two general types of goals— performance and learning. Do You Want to Perform or Learn? One way to organize or differentiate your many goals is to categorize them as perfor- mance or learning. A  performance goal  targets a specific end result, and a  learn- ing goal  promotes enhancing your knowledge or skill. Managers typically overemphasize the former and ignore the latter as they try to motivate greater effort and achieve results. If you lack necessary skills, experience, or direction from your manager, then performance goals can be more frustrat- ing than motivating. A performance goal can deflect atten- tion from the discovery of task-relevant capabilities (learning goals); as such it often is helpful to set learning goals first and then set performance goals once you’ve developed some level of proficiency. Let’s illustrate using a tennis analogy. If a novice tennis player focuses on getting 100 percent of her first serves in (a performance goal), this may prevent her from concentrating on the fundamental elements of an effective serve (learning goals). Both goals are ultimately important, but the novice player must learn how to play the game before becoming concerned about reaching challenging performance outcomes, such as a high first serve percentage and aces. This insight may also have implications for college graduation rates. The U.S. Department of Education reports that 59 percent and 66 percent of students graduate from public and private institutions, respectively.27 Of THE BIGGER PICTURE Not all goals are the same, and you’re about to learn the difference between performance goals and learning goals. More importantly, you’ll pick up tips on how to manage the goal- setting process. You’ll also benefit from practical guidance on what types of goals to use in particular circumstances. 6.2 DEFINE PERFORMANCE— EXPECTATIONS AND GOALS Explain how and why goal setting gives you an advantage. LO 6-2 Learning about and applying goal setting has been shown to improve one’s academic achievement. Edwin Remsberg/Alamy Stock Photo Organizational Behavior: A Practical, Problem-Solving Approach 208 PART 1 Individual Behavior course, many factors can contribute to these outcomes, but one person factor that could help are students’ goal-setting skills. A study of students who were struggling academi- cally demonstrated the power of teaching people how to skillfully set and integrate both learning and performance goals. The students participated in an intensive online tutorial on how to write and achieve personal goals, which led to significant improvement in academic achievement four months later.28 What about at work? A study of nearly 900 managers across industries showed those with learning goals performed better at their jobs and were more adaptive to change.29 You should assume your employer would like you to do both—perform and adapt—and now you know your goals can make the difference. The lesson? Learn about and apply goal setting to improve your grades at school and your performance at work. Managing the Goal-Setting Process There are four general steps to follow when implementing a goal-setting program (for yourself or others). Deficiencies in one step cannot be made up for with strength in the others, which means you need to diligently execute all four steps. Step A: Set goals. Step B: Promote goal commitment. Step C: Provide support and feedback. Step D: Create action plans. Specific State goals in precise rather than vague terms. For example, I will par- ticipate in 20 hours of training this quarter, versus I will do more train- ing this year. Quantify your goals whenever possible. Measurable You need to track progress and verify whether a goal has been achieved or not. This requires some form of measurement or veri fication—quantity, quality, completed (yes or no), and other relevant details. If, for instance, the goal is to assess the characteristics of your company’s top-performing sales teams, then you likely will need to include both quantitative (sales) and qualitative (methods for building customer relationships) measures. Also be sure to consider the interplay between quantity and quality of output–trade-offs matter. Attainable Goals should be realistic, challenging, and attainable. Impossible goals reduce motivation because people do not like to fail. It helps to remem- ber people have different levels of ability and skill, and what is easy and second nature for one person may be very difficult for another. Results oriented To focus on desired end results, goals should start with the word to followed by verbs such as complete, acquire, produce, increase, and decrease. Corporate goals should focus on desired end results that support the organization’s strategy. In turn, an individual’s goals should directly support the accomplishment of corporate goals. Activities that support the achievement of goals are outlined in action plans. Time bound Specify target dates for goal completion. Getting a job is an outcome, but there are several sub-goals you must accomplish first. You’re more likely to achieve them and get the job if you put dates on the calendar. TABLE 6.1 Guidelines for Writing Smart Goals SOURCE: Schroedera, Juliana, and Ayelet Fishbachb. “How to Motivate Yourself and Others? Intended and Unintended Conse- quences.” Research in Organizational Behavior 35 (2015): 123–41. https://doi.org/10.1016/j.riob.2015.09.001. Organizational Behavior: A Practical, Problem-Solving Approach 209Performance Management CHAPTER 6 Step A: Set Goals Whether your manager sets your goals for you, or you set them together, the goals should be “SMART.”  SMART  applied to goals is an acronym for specific, measurable, attainable, results oriented, and time bound. Goals with these qualities are clearer and more actionable than those that aren’t. And when SMART goals are set from the top to the bottom of an organization, it is easier to link employee goals to those at higher levels—the department and organization. This could help you and your colleagues understand how your work and performance affects others, including the strategy of the company.30 Table 6.1 lists practical guidelines for writing SMART goals. Step B: Promote Goal Commitment Goal commitment boosts motivation to achieve any particular goal, and commitment can be increased by ensuring goals are per- sonally relevant, obtainable, and fair. Table 6.2 provides additional practical advice for increasing your goal commitment, while at the same time improving the quality of your goals and boosting your likelihood of success. Step C: Provide Support and Feedback This step is about helping employees achieve their goals. (More detail related to feedback is provided later in this chapter.) Prac- tical suggestions include: • Make sure each employee has the necessary skills and information to reach his or her goals. Provide training if necessary, because it can boost people’s expectancy (recall expectancy theory from Chapter 5). Write Your Goals Down You’ve heard it before, but writing your goals down makes a real difference. The process of writing them helps refine and imprint them in your mind, and it pro- vides a record that you can go back to and revise as you make progress. It is more efficient since you don’t have to keep the goals and details in your head. Identify Key Obstacles and Sources of Support Be proactive and try to identify who or what might get in your way. Conversely, think of who or what might be able to help you reach your goal. Ask What’s in It for YOU? List the benefits of achieving the goal, and keeping your eyes on the prize will help you stay motivated over time. Break It Down Some goals are big and/or take considerable effort and time to achieve. It is helpful to break them down into smaller, sub- or intermediate goals. Visualize If you haven’t tried this—it works! Imagine not only how you will benefit by achieving your goal, but also how you will feel. Adding the positive emotional component can boost your motivation. Organize Preparation is key. It gives you clarity, makes you more efficient, and helps you avoid wasting energy and time. Reward Yourself Reward yourself both for making progress while pursu- ing your goal and for attaining the ultimate outcome. It is important to reinforce your efforts. Building in small wins and rewards along the way can help motivate you and keep you on track.31 TABLE 6.2 Tips for Increasing Goal Commitment and Success Organizational Behavior: A Practical, Problem-Solving Approach 210 PART 1 Individual Behavior • Similarly, pay attention to employees’ expectations about their perceived relation- ship between effort and performance (Chapter 5), their perceived self-efficacy, and their reward preferences, and adjust accordingly. • Give employees timely and task-specific feedback (knowledge of results from job characteristics in Chapter 5) about what they are doing right and wrong. • Provide monetary and nonmonetary incentives and be sure to reward meaningful progress—not just goal accomplishment. Step D: Create Action Plans What use is a goal without a plan for realizing it? For instance, planning the amount of time you intend to devote to training, rather than sim- ply attending a session or doing it when you can, greatly improves the effectiveness of your learning. The same applies to studying—plan your study time and what you will study during that time, and research says you are more likely to stick with it and increase your learning.32 The first three steps all help tremendously in formulating your actions plans. Table 6.2 offers additional useful tips. We also encourage you to look to your experience—what’s worked in the past when pursuing a similar goal? If you can’t rely on your own experi- ence, then learn what others have done and follow their plan. No need to reinvent the wheel. See the nearby OB in Action box to learn how the goal-setting plan worked in a restaurant. The owner of two restaurants wanted to help guard against credit card theft as it costs both customers and the business. A simple way of doing this is to ensure cashiers compare IDs with names and and signatures on the credit cards presented by custom- ers. The owner did an experiment and set a compli- ance goal and an intervention at one restaurant but not the other. Before the experiment began, the baseline ID check rate at both restaurants was about 3 percent. At the target restaurant the manager met with employees, set a 50 percent ID check goal, posted signs next to the registers, and provided a verbal reminder at the beginning of each shift, “let’s meet our goal of 50 percent.” The results were remarkable! ID checks rose to nearly 40 percent at the target restaurant and even remained above 30 percent many weeks after the prompts were stopped. The other restaurant without the goal and prompt saw no change in ID checks. This goal-setting strategy is simple and effective. Put this knowledge to use. YOUR THOUGHTS? 1. What is a way you could apply this simple goal- setting and prompt intervention to improve your performance at school? 2. Why do you think this worked at the restaurant? Why do you think it would work for the personal example you provided in #1? 3. At your current job, or one you had in the past, describe how you or the manager could apply a similar intervention. Be sure to describe desired behavior and both the goal and the prompt or reminder. I Need to See Some ID33 OB in Action Simply setting goals and offering reminders can have a dramatic impact on behaviors, as happened in the restaurants described in this box. Chuck Savage/Corbis/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 211Performance Management CHAPTER 6 Next, visualize what achieving the goal looks like and work backward. This is another instance when the characteristics of SMART goals are extremely valuable. Being specific, results oriented, and time bound are fundamental characteristics of solid action plans. Finally, if you run into difficulties we’ve already provided you with an excellent tool—the 3-Step Problem-Solving Approach. This can help you identify and remedy roadblocks in your goal setting and action plans. Applying a contingency approach to goal setting is another way to be more effective and boost performance. Let’s explore this next. Contingency Approach to Defining Performance and Setting Goals Recall the discussion in Chapter 1 about how effective employees and managers (you!) should use a contingency approach. Do what the situation requires rather than applying a one-size-fits-all approach, relying on personal preferences, or doing something “the way it’s always been done.” Fit the behavior, policy, or practice to the situation. You can apply this same wisdom to goal setting. Learning and performance goals have their place, and SMART goals can give you a significant advantage over your competitors. However, another way to define goals is in terms of behavioral, objective, and task/project (see Table 6.3). Defining goals in this manner helps you ensure your goals match the situation. For instance, not all performance can or should be defined and measured in dollars and cents. Once you’ve clarified expectations and set effective goals, it is necessary to monitor and evaluate your progress and ultimate level of achievement. This is the focus of the next section. BEHAVIORAL GOALS OBJECTIVE GOALS TASK OR PROJECT GOALS Can be used in most jobs. Best for jobs with clear and readily measured outcomes. Best for jobs that are dynamic, but in which nearer- term activities and milestones can be defined. Most relevant for knowledge work. Measure what matters, not just what can be measured. Similar to SMART goals. Example: Treat others with professionalism and respect; communi- cate clearly. Examples: sales quotas, production rates, error rates. Example: Complete your portion of the team project by Tuesday. TABLE 6.3 Contingency Approach to Defining Performance SOURCE: Adapted from M. Schrage, “Reward Your Best Teams, Not Just Star Players,” Harvard Business Review, June 30, 2015, https://hbr.org/2015/06/reward-your-best-teams-not-just-star-players. Organizational Behavior: A Practical, Problem-Solving Approach 212 PART 1 Individual Behavior 6.3 PERFORMANCE MONITORING AND EVALUATIONS Once you have defined and communicated performance expectations (goals), you are ready to monitor and evaluate progress and ultimate performance. We emphasize the need to monitor and evaluate both progress toward the goal and ultimate level of goal achieve- ment. Doing both instead of simply focusing on the final outcome boosts both motivation and performance. For instance, at school you prefer to learn how you’re performing sometime before your final grade report, such as a midterm exam and/or homework assignments. If the only score you receive and the only time you learn this is on the final, then you have no opportunity to take corrective action and improve the outcome. Moreover, your final exam may not appropriately capture all that you’ve done throughout the course. Despite this common-sense argument, many, many organizations and entire industries focus only on one final outcome, such as sales target (pharmaceuti- cals), wins (sports), and rankings (business schools). This is why accurately and appropriately monitor- ing and evaluating both progress and outcomes are criti- cal components of effective performance management and your personal effectiveness. Monitoring Performance— Measure Goals Appropriately and Accurately  Monitoring performance  means measuring, tracking, or otherwise verifying progress and ultimate outcomes. You use the information gath- ered through monitoring to identify problems and successes and to find opportunities for enhancing per- formance during the pursuit of a goal. To be effective, you need to use or even create accurate and appropri- ate measures. Table 6.3 showed that many goals can be categorized as behavioral, objective, or task- oriented, and the way you measure these goals should match their character. THE BIGGER PICTURE To ensure success, you’ll need to accurately measure and evaluate both your progress and the ultimate completion of the goals you set in component 1—defining expectations. In this section you’ll learn numerous practical tips to help with monitoring and evaluating perfor- mance. This includes learning how perceptual errors can influence your evaluation of perfor- mance, and why 360-degree feedback is commonly used to help overcome shortcomings in the measurement and evaluation of performance. Describe how monitoring and evaluation can improve your performance and ability to manage others. LO 6-3 Grades are the dominant if not sole way performance Is monitored and evalu- ated at school. Mid-term exams and homework grades are a means for moni- toring your progress toward your overall or final grade. rjp85/E+/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 213Performance Management CHAPTER 6 Monitoring Your measurement and monitoring can improve further still if you con- sider the following (you’ll notice some overlap with Table 6.3): Timeliness. Was the work completed on time? Many customer service roles require representatives to answer calls within a certain number of rings, or to respond to customer requests in a certain number of hours or days. Quality. How well was the work done? A behavioral goal that could fit here is greeting customers warmly, personally, and with a smile. Measurement consists of observing and/or reporting that these actually occurred. Quantity. How much? Sales goals are common examples here, such as dollars or number of units sold. Financial metrics. What are the profits, returns, or other relevant accounting/finan- cial outcomes? For instance, some law firms measure the performance of attorneys and the larger firm by calculating profits in dollars per partner.34 Like many other elements of our lives, technology is revolutionizing performance management. Employers can and often do track computer and phone usage, install cam- eras in most places, and review social media activity. Now, however, employers are cap- turing employee facial expressions, tone of voice, emotions, location, interactions, and bio/health data, and the list is growing.35  Electronic performance monitoring  (EPM) uses technology to gather, store, analyze, and report employee behavior.36 The OB in Action box illustrates some interesting applications and the associated pros and cons. There was a time when some employers used tape measures to plot the distance and paths nurses fol- lowed on their patient rounds in hospitals.37 Today, such monitoring is done with hardware and software that provides real-time location and activity logs for employees. Patty Jo Toor, the chief nursing officer at Florida Hospital Celebration Health, uses electronic badges to monitor how often nurses and other care providers visit patient rooms.38 One result was the hospital found it could increase time with patients by stocking more medication on the floors during the night shift, cutting the time nurses had to spend ordering it. In a similar way, United Parcel Service (UPS) has used GPS to make drivers’ routes more efficient, saving time, gas, emissions, and money (millions of dollars every year).39 Benefits to the Employer Supporters outline a number of benefits, such as reducing theft, improv- ing safety and productivity, and limiting liability. If you’re being watched you’re less likely to take extra- long or unsanctioned breaks, spend work time shop- ping online, or tending to your fantasy sports standings. Basically, monitoring ensures you’re doing what you’re expected to do, and do the expected things better.40 Some companies equip their vehicles with video cameras in case of theft or accidents. Shuttle Express Inc., for example, used dashboard camera video to show that its driver was not at fault in an accident. It saved the company an estimated $100,000.41 Most employees would not fault employer moni- toring that guards against improper sharing of trade secrets or other proprietary information, but as mon- itoring becomes more capable and more pervasive we might ask: Just because employers can monitor, should they, and what are the boundaries? Costs and Cautions for Employers Dissenters argue such monitoring is demoralizing, unfair, vio- lates privacy, and decreases job satisfaction. And some studies show links between electronic perfor- mance monitoring (EPM) and decreased job perfor- mance and increased counterproductive work behaviors (CWBs).42 Still others reveal it increases stress, fatigue, and negative emotions.43 Employers also are tracking the time lost to non- work activities. College basketball’s March Madness Monitoring for Performance Becomes More Sophisticated and Pervasive OB in Action Organizational Behavior: A Practical, Problem-Solving Approach 214 PART 1 Individual Behavior Companies have considerable legal discretion to monitor employees, including for performance, but along with the benefits come challenges. Here are helpful tips to con- sider when utilizing monitoring for performance at work. • Be Transparent. Explain the what, where, how, and why. Tell employees what is monitored, where, how, and especially why. Justify! The primary motive should be performance improvement. But if guarding against theft is another goal, say so. Employees may raise potential pitfalls you didn’t consider. Many negative reactions happen because employees are unaware of the motives and practices. • Monitor Only Work. Make work and nonwork boundaries clear and the ensure both parties abide by them. For instance, do not track employees’ locations during non- work hours. • Focus on Development, Not Punishment or Deterrence. Avoid blocking everything and instead collect, analyze, share, and act on information that contributes to performance. If you’re simply monitoring to catch employees doing the wrong things, then you are undermining employee trust and will spur an eternal game of cat and mouse. • Make it Fit and Fair. Be sure monitoring fits particular jobs and situations to the extent necessary and feasible. If some employees’ and their jobs require more flexi- bility and access, then consider this. However, be sure that all employees across levels are expected to comply with policy.46 After you’ve defined your performance goals and monitored them using accurate and appropriate measures, it is time to evaluate the level and/or quality of performance. Evaluating Performance Your measures of performance should be both relevant and accurate. There is nothing more discouraging than being measured on criteria that don’t matter or not being measured on those that do.  Evaluating performance  is the process of comparing performance at some point in time to a previously established expectation or goal. To do this, you obviously need something to compare, which is why measurement or verification is needed in some form. is estimated to cost employers approximately $4 billion In lost productivity,44 which is due to the nearly 51 million employees who participate in and thus fill out pools, watch, and talk about the games. Consider also Cyber Monday, when nearly half of U.S. workers say they shop online while at work. Great news for the retailers; not so much for other businesses and their managers who suffer the lost productivity. Individual opinions will vary about each of these, but such constant monitoring has the potential to cause stress, undermine employee morale and trust, and even be the grounds for lawsuits. One of the early challenges to tracking employ- ees using GPS technology involved Intermex Wire Transfer. Employees were required to download an app to their phones and keep them on 24/7. An employee asked her manager about nonwork hours tracking, and he told her, “yes,” the employer would track her both on and off duty. She “likened it to wearing a house arrest bracelet,” protested, unin- stalled the app, and was fired. She and the company ultimately settled out of court.45 YOUR THOUGHTS? 1. Assuming you own your company, make the case for monitoring your employees. 2. If you are working (or have worked), does your employer monitor employees? If yes, describe the costs and benefits to that employer. 3. If your employer does not monitor employees, what type of monitoring might be beneficial from the employer’s perspective? 4. Whether you are working or not, describe a type of monitoring that would be useful for your school. Organizational Behavior: A Practical, Problem-Solving Approach 215Performance Management CHAPTER 6 Your midterm grade, for instance, helps you monitor your performance so far, but it isn’t the end of the story. You then evaluate it—did you perform as you expected? Why or why not? How will your midterm performance affect your grade for the course? The answers to these questions are important and are often influenced by your perceptual processes. As you learned in Chapter 4, your attributions and perceptions can greatly influ- ence the way you evaluate the information you gathered via monitoring. Table 6.4 lists common perceptual errors in monitoring employee performance and recommended solutions. The best-laid goals can be completely undermined if performance toward them is not measured appropriately, or if performance is evaluated with bias. Many organizations and their managers have tried to overcome such problems using 360-degree feedback. In  360-degree feedback,  individuals compare perceptions of their own perfor- mance with behaviorally specific (and usually anonymous) performance information PERCEPTUAL ERROR TENDENCY EXAMPLE RECOMMENDED SOLUTION: KEEP PERFORMANCE NOTES Halo effect To form an overall impression about a person or object and then use that impres- sion to bias ratings about same. Rating an employee pos- itively across all dimen- sions of performance because the employee is so likable. Record examples of positive and negative employee performance throughout the year. Remember employee behavior tends to vary across different dimensions of performance. Leniency To consistently evalu- ate other people or objects in an extremely positive fashion. Rating an employee high on all dimensions of per- formance regardless of actual performance. Provide specific examples of both good and poor behavior so you can help the employee improve. Remember it does not help employees when they are given positive but inaccurate feedback. Be fair and realistic in evaluations. Central tendency To avoid all extreme judgments and rate people and objects as average or neutral. Rating an employee as average on all dimen- sions regardless of actual performance. Define an accurate profile, with high and low points, so you can help the employee improve. Remember it is normal to provide feedback that contains both posi- tive and negative information. Recency effect To over-rely on the most recent information. If it is negative, the person or object is evaluated negatively. Rating an employee based only on the last portion of the review period. Accumulate examples of perfor- mance over the entire rating period. Remember to look for trends but accept some variance as normal. Contrast effect To evaluate people or objects by comparing them with characteris- tics of recently observed people or objects. Rating an employee as average, from a comparison of the employee’s performance with the exceptional performance of a few top performers. Evaluate employees against a standard, rather than against the performance of your highest- performing employees. Remember that each employee deserves the objectivity in evaluation that a standard can provide. TABLE 6.4 Common Perceptual Errors Related to Performance Evaluation Organizational Behavior: A Practical, Problem-Solving Approach 216 PART 1 Individual Behavior from their manager, subordinates, and peers. Such multi-rater feedback can also come from outsiders, such as customers or suppliers. These participants can help overcome posi- tive or negative biases due to perceptions or manager-employee relationships.47 HCL Technologies, one of India’s three largest IT services companies, implements a 360-degree feedback program for the CEO and 3,800 managers. The CEO’s reviews are transparent, posted on the company’s internal website for all 50,000 employees to see. The managers’ results are posted too. Vineet Nayar, the former CEO who created the system, described the system as “reverse accountability,” wherein managers are accountable to employees, the opposite of the business norm.48 Collecting performance information from multiple sources helps the person being evaluated get a broad view of his or her per- formance, and it also highlights any biases and perceptual errors that might be occur- ring. Finally, using multiple raters also makes it much more difficult for managers to unfairly favor or punish particular employees (recall our discussion of equity and fairness in Chapter 5). A study of 360-degree feedback for 69,000 managers and 750,000 employees revealed fascinating results. Managers dra- matically overrated their own capabilities— perhaps this is not a surprise. But those who underrated their prowess were viewed by employees as the most effective leaders. The underraters also had the most engaged employees (an important individual-level outcome).49 Research on 360-degree feedback, com- bined with your author’s consulting experi- ence, leads us to favor anonymity and also to discourage use of 360-degree feedback for pay and promotion decisions. When it is used for pay and promotions managers often resist and/or try to manipulate the process. However, multi-source feedback can be extremely helpful for training and development purposes. Now that you have a sense of the impor- tance of monitoring and evaluating perfor- mance, as well as tips for doing this accurately, let’s move on to the next compo- nent and review performance. This includes the critically important and dramatically underutilized skill: feedback. Vineet Nayar, former CEO of HCL Technologies and world-renowned management expert, believes in realizing employees’ full potential. He energetically advocates that organizations put employees first and invest in their development. Stephane Audras/REA/Redux Pictures Organizational Behavior: A Practical, Problem-Solving Approach 217Performance Management CHAPTER 6 Most people agree that feedback has the potential to boost performance. However, most people also admit that they neither receive nor provide feedback as often or as well as they would like. Forty-seven percent of employees surveyed by Gallup indicated they receive feedback a few times or less per year from their managers, while 19 percent reported receiving it zero times or once (likely in an annual review). This contrasts with the 7 percent who said they receive feedback daily.50 We’ll help you understand some reasons this hap- pens and what you can do about it. It is safe to say your feedback skills are some of the most valuable tools you can develop and use throughout your career. Now let’s convince you that this bold statement is true. What Effective Feedback Is . . . and Is Not Many if not most students and employees alike appreciate feedback. Both want to know how they’re doing and how their performance compares to that of their peers. Feedback is an important, but not always present, cousin of goal setting. It enables you to learn how your performance compares to the goal, which you can then use to modify your behaviors and efforts. We therefore define  feedback  as information about individual or collec- tive performance shared with those in a position to improve the situation. Effective feedback is only information—it is not an evaluation. Subjective assessments such as “You’re lazy” or “You have a bad attitude” do not qualify as effective feedback. They are simply opinions and often have little value. But hard data such as units sold, days absent, dollars saved, projects completed, customers satisfied, and quality rejects are all examples of effective feedback. Christopher Lee, author of Performance Conversations: An Alternative to Appraisals, clarifies the concept of feedback by contrasting it with perfor- mance appraisals: Feedback is the exchange of information about the status and quality of work prod- ucts. It provides a road map to success. It is used to motivate, support, direct, correct, and regulate work efforts and outcomes. Feedback ensures that the manager and employees are in sync and agree on the standards and expectations of the work to be performed. Traditional appraisals, on the other hand, discourage two-way com- munication and treat employee involvement as a bad thing. Employees are discour- aged from participating in a performance review, and when they do, their responses are often considered “rebuttals.”51 Mike Duke, former president and CEO of Walmart, is a strong advocate of linking goal setting and feedback. Leadership is about . . . listening and getting feedback from a broad array of constituents. . . . It’s about setting aggressive goals and not being afraid to go after very THE BIGGER PICTURE You’re about to learn how different forms of feedback influence performance and how to deliver feedback more effectively. You’ll also see how combining feedback with coaching is a powerful means for managing and improving your performance and that of others. 6.4 PERFORMANCE REVIEW, FEEDBACK, AND COACHING Apply knowledge of feedback and coaching to review and improve performance. LO 6-4 Organizational Behavior: A Practical, Problem-Solving Approach 218 PART 1 Individual Behavior aggressive goals and targets. I think it’s even better for a leader to set an aggressive goal and come up a little short than it would be to set a soft goal and to exceed it. . . . Hard feedback is in some environments viewed in a very threatening way, and people don’t want to hear feedback. In our environment, I think there is a desire to hear candid feedback. When we leave a meeting, before we’ll even drive away, I’ll ask, “Well, give me feedback.” I think a leader asking for feedback sets a good tone.52 Clearly, feedback can affect outcomes across levels of the Organizing Framework. If Feedback Is So Helpful, Why Don’t We Get and Give More? This obvious question is worth answering. After surveying thousands of students and employees, researchers offer the most common responses: 1. Potential strain on relationships. It is easy for most people to deliver good news: “Susan, great job on the project. The customer was very pleased, and you made the team look good.” However, very few people like to deliver negative feedback (or bad news in general): “Susan, you were ill-prepared and really hurt our chances with that customer.” We worry about making the person feel bad and wonder how that person will act in the future because of it. After all, we often make friends at work, we genu- inely like many of our coworkers, and we don’t want to make them feel bad, make ourselves and others uncomfortable, or harm our relationships. 2. Too little time. We’re all busy. Even true believers in the value of feedback often let it slide: “This week I plan to talk to Mark about how impressed I am with his fast start at the company.” But the week passes and you still haven’t done it. Next week. But then that passes too, and so on, and so on.53 3. Lack of confidence. Very few people are trained to give effective feedback and so lack confidence in their abilities. This problem is compounded if the feedback is going to include negative content and/or will be tied to a performance evaluation. After read- ing this chapter and book, you won’t have such an excuse. You’ll be equipped with both knowledge and tools to boost your confidence. 4. No consequences. As you’ll learn or may already be aware, the trend is toward giving more frequent and considerably different forms of feedback than in the past. However, if managers are not evaluated on whether they provide feedback—effective or not—they are less likely to give it. With these common obstacles in mind, let’s learn how to overcome them and do bet- ter, beginning with the two primary functions of feedback—to instruct and to motivate. Two Functions of Feedback Experts say feedback serves two functions for those who receive it: one is instructional and the other motivational. Feedback instructs when it clarifies roles or teaches new behavior. For example, an assistant accountant might be advised to handle a certain entry as a capi- tal item rather than as an expense item. Feedback motivates when it serves as a reward, such as recognition for a job well done, or promises a reward (remember the discussion in Chapter 5). Hearing the boss say, “You’ve completed the project ahead of schedule; take the rest of the day off,” is a pleasant reward for hard work. More generally, however, many employees appreciate the attention and interest expressed by the very act of providing feedback, regardless of content. Assume you’re one of the students learning CPR in the photo. Which type of feedback do you think would be more helpful and you would appreciate more—instructional or moti- vational? Regardless of your preference, you certainly would agree that both forms would be more effective than the instructor simply saying you did it wrong and that she is Organizational Behavior: A Practical, Problem-Solving Approach 219Performance Management CHAPTER 6 unhappy with your performance. Keep this in mind when you provide feedback to others. Keep it instructional or motivational and you’ll keep it appreciated and effective! We also think you’ll find this example especially interesting. A study showed that undergraduate students who used peer-to-peer feedback on writing assignments improved the quality and performance of their work. This likely isn’t a surprise, but what is notable is that either giving or receiving both resulted in similar improvements. This suggests simply giving feedback can boost your performance.54 Important Sources of Feedback—Including Those Often Overlooked The three common sources of feedback are 1. Others 2. Task 3. Self It almost goes without saying that you receive feedback from others (peers, supervisors, lower-level employees, and customers). Perhaps less obvious is the fact that the task itself is a common source of objective feedback. For instance, many tasks—writing code, landing a plane, or driving a golf ball—provide a steady stream of feedback about how well or poorly you are doing. A third source of feedback is you, but self-serving bias and other perceptual problems can contaminate this source (recall Chapter 4). NO SURPRISES! Whoever conducts a performance review should ensure there are no surprises—good or bad! As a general rule, if you are surprised by something shared during your review, your manager is doing a poor job of managing your performance. It also is a Assume you’re one of the students learning CPR in the photo. Which type of feedback do you think would be more helpful and you would appreciate more—instructional or motivational? Regardless of your preference, you certainly would agree that both forms would be more effective than the instructor simply saying you did it wrong and that she is unhappy with your performance. Keep this in mind when you provide feedback to oth- ers. Keep it instructional or motivational and you’ll keep it appreciated and effective! Hero Images/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 220 PART 1 Individual Behavior sure sign that he or she is not giving you the appropriate quantity and quality of feedback. Most often such surprises occur in performance management systems structured around an annual review. This means that regardless of how frequently performance information is collected, it is communicated and discussed only once a year. To avoid surprises in your own reviews, check in with your manager periodically and informally ask, “Is there anything I should be aware of? I know we’ll have my review later this year, and I want to be sure there are no surprises . . . even positive ones.” If you punctuate your question with a smile it is likely your manager will clearly understand your intent. The OB in Action box describes the progressive and effective approach to employee feedback at Zappos. One of the key elements that enables Zappos to have rock star status with its customers and employ- ees is the company’s approach to performance man- agement. The company has led rather than followed trends in PM and puts a premium on feedback, which it sees as fundamental to continuous improvement. Form of Feedback For starters, the company is largely organized in teams and each with a coach rather than manager. And much like coaches of sports teams, Zappos coaches focus on the devel- opment and performance of team members. They rely heavily on instructional feedback, such as how long customers had to wait on hold and what per- centage indicated their problem was resolved during a call, rather than evaluative or punitive judgements. Zappos team member Lori Johnson, who has been at Zappos since 2017 and in customer service roles for more than 30 years, described the sessions with coaches as 1-on-1 conversations and 2-way, rather than the conventional manager-subordinate perfor- mance meeting. Metrics are used, but not exclu- sively, and conversations tend to include specific examples of particular behaviors witnessed versus simple numeric ratings.55 Linked to Values The nature of the coach-team member conversations, and thus the feedback, are directly linked to the company’s 10 core values: deliver WOW through service, embrace and drive change, create fun and a little weirdness, be cre- ative and open-minded, pursue growth and learn- ing, build open and honest relationships with communication, build a positive team and family spirit, do more with less, be passionate and deter- mined, be humble. The company’s performance management and associated feedback are all driven by and based on these values.56 Use and Frequency of Feedback The company long ago abandoned the traditional once-a-year review. Team members, like Ms. Johnson, commonly meet with their coach every couple of weeks to dis- cuss job-related issues in real-time. They also meet once a month more formally to review the trailing three months of performance. She described these as formal only in the sense metrics are pulled and reviewed, but the actual conversation is informal, free-flowing, and a casual back-and-forth. These fre- quent interactions provide numerous opportunities for feedback and enable desirable behaviors to be recognized and reinforced, as well as take corrective action, as it happens.57 How Do You Spell Feedback and Self-Improvement? Z-A-P-P-O-S! OB in Action Zappos employees are not only allowed but encouraged to person- alize their workspaces. This aligns with the company’s values— create fun and a little weirdness—and is believed to foster excellent customer service. Ronda Churchill/Bloomberg/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 221Performance Management CHAPTER 6 Your Perceptions Matter Another reason people don’t give or get more feedback is that they don’t want it. What are your attitudes toward feedback? Do you seek it out? Do you want to hear it only if it is positive? To answer these questions and better understand your desire for feedback, com- plete Self-Assessment 6.1 and read the following section. Not Meeting Expectations? If someone’s perfor- mance is not up to standards, the company provides numerous free, on-site courses aimed at skill build- ing and improvement.58 YOUR THOUGHTS? 1. What are the advantages to the Zappos approach to feedback? 2. What disadvantages are possible? 3. Explain why you would or would not want to be an employee with such a PM system. 4. Assume you are a manager at a company using a similar approach. What may be the pros and cons of this system for you? What Is My Desire for Performance Feedback? Please be prepared to answer these questions if your instructor has assigned Self- Assessment 6.1 in Connect. 1. Think of a recent instance when you were given feedback. 2. How does your score help explain your reaction to that feedback? 3. Describe a specific way your desire for feedback (your score) helps or hurts you in college and at work. 4. Given your score, think of ways you can improve your receptiveness for feedback. SELF-ASSESSMENT 6.1 CAREER READINESS Factors that Affect Your Perceptions of Feedback Many factors influence the way we perceive feedback. For instance, all managers and employees are susceptible to the fundamental attribution bias (your manager attributes your poor performance entirely to you and things you control) and the self-serving bias (you are likely to take credit for positive performance outcomes and attribute poor performance to extrinsic factors). The following also can influence your perceptions of feedback: 1. Accuracy. A common criticism of PM systems is that they measure the wrong things or measure the right things the wrong way. Either way, the feedback is inaccurate. 2. Credibility of the sources. If a member of your project team points out shortcomings in your work, you are likely to put more weight on the feedback if he or she is an “A” student or top performer. Trust is critical here too. If you don’t trust the person deliv- ering the feedback, you will likely be suspicious of his or her intentions and discount its value. 3. Fairness of the system. If you perceive the process or outcomes as unfair—recall equity theory from Chapter 5—you are likely not only to discount the feedback but also to be outraged, withdraw, commit counterproductive work behaviors, and/or quit. Perfor- mance appraisals are one of the aspects of organizational life that most commonly reveal issues of fairness. Organizational Behavior: A Practical, Problem-Solving Approach 222 PART 1 Individual Behavior 4. Performance-reward expectancies. Effective performance management, particularly ongoing and open feedback between you and your supervisors, is an important means of managing such expectancies. 5. Reasonableness of the goals or standards. When it comes to goals, challenging is good, unattainable bad. If your manager says, “You can earn a bonus of up to 50 percent of your salary,” ask whether anyone has actually ever earned that much. If not, you may be the first, but more likely the goal is unreasonable. Any feedback that fails to clear one or more of these cognitive hurdles will be rejected or discounted by the employee. Negative Feedback Remember, feedback itself is simply information. It becomes positive or negative only when you compare it to a goal or expectation. Such comparisons are the basis for improvement. (Note: Negative feedback is not negative reinforcement. You’ll learn the important difference later in this chapter.) People tend to perceive and recall positive feedback more accurately than they do negative feedback. But negative feedback, such as being told your performance is below average, can have a positive motivational effect. One study showed that those who were told they were below average on a creativity test subsequently outperformed those who were led to believe their results were above average. The subjects apparently took the negative feed- back as a challenge and set and pursued higher goals. Those receiving positive feedback were less motivated to do better.59 However, as you likely know, negative feedback needs to be used with discretion because it is perceived and processed differently. For instance, a study of employees in a company with a transparent peer-review process—each employee knew both the ratings and the associated raters—showed that after receiving negative feedback employees tended to distance themselves from the sources of that feedback, and then “shopped around” for and associated with colleagues who provided positive feedback. As you might expect, some employees had to work with those providing negative feedback, and over time they devel- oped more and richer relationships with members outside of their group. So how do you balance the benefits and costs? The same Harvard researchers suggested the key is in ensuring employees feel valued and they also make positive contributions.60 It thus seems research is mixed on negative feedback, but you will undoubtedly receive it throughout your working life. It therefore is a good idea to learn how to deal with it effec- tively, which is the purpose of the nearby Applying OB box. Applying OB Although research is mixed, all of us receive negative feedback, and in most Instances the person providing the feedback has genuinely positive intentions. The goal of course in most instances is to improve your performance, which means your challenge is how to avoid getting defensive or having your self-esteem or self-efficacy crushed. The following tips can help. 1. Hit the Brakes. Oftentimes our first reaction is quick and defensive. A better approach is to pause, listen, and then take time to process. When processing it helps to frame it as “what can I learn from this? How was this intended to help me?” It also can help to then think of a positive way you contribute in the same task or relationship. 2. Confirm. Don’t immediately discount or accept the feedback, but instead seek other unbiased sources. Even if done informally they can help con- firm or refute the negative feedback. This is one reason why multi-rater or 360 feedback is so valuable—you can compare. But from whom? It is a good idea to identify a small group of people you trust both to share such information with and hear the truth in return. One executive referred to such people as “loving critics.” Making Lemonade from Lemons—How to Respond to Negative Feedback CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 223Performance Management CHAPTER 6 3. Approach and Cultivate, Don’t Avoid. As you learned above, and likely understand, people tend to avoid those who delivered the bad news. But if you’re serious about improving your self-aware- ness and effectiveness, then you need to cultivate relationships with people who will give it to you straight. Try thanking those who provide such Information and ask whether they would mind your following up periodically. 4. Assess and Own? In addition to and as a result of the above advice, you may learn some of the negative feedback pertains to individual differ- ences, some of which might be relatively more fixed than others (recall from Chapter 3). In such instances you may communicate to those who provided the feedback, such as that you are not especially likeable, and tell them that their feed- back helped raise your awareness. And even though you seem kind of stand-offish, you genu- inely like to interact with people. Then, ask for their understanding and help as you work on breaking down and resetting their perceptions.61 Nonetheless, feedback with a negative message or threatening content needs to be administered carefully to avoid creating insecurity and defensiveness. Both negative and positive feedback need to provide clear guidance to improve performance. Feed- back is most likely to be perceived accurately, and thus more likely to be acted on, when it is instructional and helps achieve an important or valued outcome. Table 6.5 lists important and fundamental do’s and don’ts for giving feedback. In addi- tion to these, the following tips further improve your feedback skills and provide pointers on how to deliver it: 1. Reflect. Before giving feedback you are well served to identify what change you want to see, what is the context or experiences of the target person (person or situation fac- tors influencing his or her performance), and whose needs you are meeting by giving the feedback. Answering these three questions helps clarify your motives and intended outcomes. 2. Cultivate Trust. By reflecting on and sharing the information in #1, you will help the receiver understand your intentions are for her or his development. You might say, for instance, “I know you want to be the number one performer and get promoted, and I would like to offer some feedback that might help.” 3. Be Action-Oriented. Sharing information isn’t the end. Feedback is more effective if it is accompanied by suggested actions.62 When done in this way, providing feedback is a form of problem-solving—what is the problem, likely causes, accompanied by recom- mended actions. Negative feedback of course has its place at work. Sometimes it is necessary, but be very careful when using it to avoid doing more harm than good. Photographee.eu/Shutterstock Organizational Behavior: A Practical, Problem-Solving Approach 224 PART 1 Individual Behavior Today’s Trends in Feedback Like PM more generally, feedback is becoming more informal, continual, and inclusive. It also is increasingly taking place between other employees and not just between managers and subordinates. These new developments hold the promise of making feedback truly more developmental and effective. It is worth noting, however, that another trend is for direct if not also critical feedback. Netflix, for instance, is practicing what is called “radical transpar- ency” in feedback and other elements of its opera- tions. Most generally, says CEO Reed Hastings, the intent is to get employee input and feedback in every aspect of the company. Performance evaluations are one example and are visible to all employees, and sal- ary information for all employees is available to approximately 500 employees at the director level and above. But that’s not all. Constant and even blunt feedback is encouraged—employees should always be looking for and offering ways to improve. The “keeper test” is one especially interesting example of direct feedback. Managers are expected to ask themselves when evaluating employees: Would I keep this per- son? Would I fight to have them on my team?65 Just as feedback practices are evolving in PM, so too are those related to coaching.66 Coaching—Turning Feedback into Change  Coaching  is a customized process between two or more people with the intent of enhancing learning and motivating change. Coaching can occur at any component in the PM process, but it most often follows the review and consequences of performance. One way to look at coaching is that it is an indi- vidualized and customized form of PM. It is different from training, which typically consists only of skill Donna Morris, Chief Human Resource Officer & Executive Vice President of Employee Experience at Adobe Systems, spearheaded a dramatic transformation in the way her company manages performance. Regular “check-ins” and “snapshots” are mini and continual opportunities to provide and receive feedback. ©2019 Adobe Inc. All rights reserved. Adobe is either a registered trademark or a trademark of Adobe in the United States and/or other countries. TABLE 6.5 Feedback Do’s and Don’ts DON’T63 DO64 Don’t use feedback to punish, embarrass, or put someone down. Keep feedback relevant by relating it to existing goals. Don’t provide feedback that is irrelevant to the person’s work. Deliver feedback as close as possible to the time the behavior was performed. Don’t provide feedback too late to do any good. Provide specific and descriptive feed- back. Don’t provide feedback about something beyond the individual’s control Focus the feedback on things employees can control. Don’t provide feedback that is overly complex or difficult to understand. Be honest, developmental, and constructive. Organizational Behavior: A Practical, Problem-Solving Approach 225Performance Management CHAPTER 6 building with the same content delivered to a group of people. It differs from mentoring, which typically has a career rather than a performance focus and most often flows from more senior to more junior employees. All these processes differ from counseling, which usually aims to over- come a problem, conflict, or dysfunctional behavior.67 With these differences in mind, effective coaching is developmen- tal, has specific performance goals, and typically includes considerable self-reflection, self-assessment, and feedback. In fact, “research from Gallup, McKinsey, and Harvard recommends that giving feedback should be the most used tool in a coach’s toolbox.”68 Research shows employees who received continual development conversations with their managers were nearly three times more likely to be engaged at work! This reinforces volumes of studies which show goal setting to be more effective when it is accompanied by continue coaching related to progress monitoring and feedback.69 Some venture capitalists see the benefits of coaching. Felicis Ventures, a VC firm founded by a former Google employee, is chang- ing venture capital by investing 1 percent of the money invested into the coaching and mental health of the founders of the firms in which they invest. The firm realizes the founders and other leaders of start- ups are both underskilled and overstressed, and by helping in both areas they are increasing the chances for their investments to per- form.70 You too can be a more effective coach by applying the advice in the nearby Applying OB box. Felicis Ventures is changing venture capital by investing in the coaching and mental health of the founders of the firms in which they invest. Peter DaSilva/The New York Tim es/ Redux Pictures Applying OB We’re not talking grades, but instead some fundamen- tal elements to practice when coaching others: fre- quency, focus, and future orientation.71 Frequent. Consistent with trends in PM, the most effec- tive coaches engage others regularly, whether it be face-to-face, e-mail, phone, text, video conferences, etc. The point isn’t so much the channel but the frequency. Although the appropriate frequency is contingent on many person and situation factors, research by Gallup suggests that at least once a week is a good goal. And remember, feedback does not need to be formal. Check-ins can work: “How are you doing today?” “What worked well in the presentation or meeting?” Simple encouragement or recognition works too. Focused. Frequency can allow communications to wander, so be sure to stay on point. It thus helps to identify and assign specific tasks and priorities. Outlining purposes and outcomes is a good place to start; however, coaching is most effective when it is a two-way street. Try not to tell and prescribe, but to discuss, identify, and recommend—problem solve col- laboratively. Future-Oriented. At the heart of coaching is develop- ment, and development is all about improving for the future. Therefore, beware of focusing too much on past performance and instead spend most of your efforts on what to do going forward. Think of coaches in sports. They of course use past games and matches for learning, but most of the attention is on improving skills and performance for the next competition. Be sure your coaching does the same. An “F” in Coaching Signals Success The Self-Assessments throughout this book can serve as important elements for your own coaching, helping you identify your development opportunities.72 When coaching is approached in this way, it is not only an important aspect of effective performance manage- ment, but it is also consistent with positive organizational behavior (Chapter 7). Consider this: If coaching is done in the way described, who wouldn’t appreciate or benefit from it? Organizational Behavior: A Practical, Problem-Solving Approach 226 PART 1 Individual Behavior 6.5 PROVIDING REWARDS AND OTHER CONSEQUENCES Rewards are a critical component of performance management, and just as particular motivational approaches affect people differently, so do rewards. Some employees see their job as the source of a paycheck and little else. Others derive great pleasure from their job and association with coworkers. Even volunteers who donate their time to charitable organizations, such as Habitat for Humanity, walk away with rewards in the form of social recognition and having done something meaningful for themselves and impactful to oth- ers. Hence, the subject of organizational rewards includes but goes far beyond monetary compensation. We begin by outlining key factors of organizational reward systems. Key Factors in Organizational Rewards Despite the fact that reward systems vary widely, they do share some common compo- nents. The model in Figure 6.3 diagrams the relationship of three components: 1. Types of rewards 2. Distribution criteria 3. Desired outcomes Let us examine these components and then discuss pay for performance. Types of Rewards Financial, material, and social rewards qualify as  extrinsic rewards  because they come from the environment. Psychic rewards, however, are  intrinsic rewards  because they are self-granted. If you work primarily to obtain rewards such as money or status, you are extrinsically motivated. If you derive your primary reward from the task itself, or the feeling that your work is meaningful and gives you a sense of responsibility, then you are motivated by intrinsic rewards (recall extrinsic and intrinsic moti- vation from Chapter 5). Responders to the devastating 2018 Camp Fire in Butte County, California, certainly had a difficult job to do. For firefight- ers, police, medical, and other emergency personnel, such work is their occupation, which means they have formal responsibilities and are paid. However, it was clear that many of them were moti- vated by and received intrinsic rewards far beyond pay. They were saving their own homes and communities, and like the many volun- teers, they were saving lives. The relative importance of extrinsic and intrinsic rewards is a matter of culture and personal preferences, so it is critically THE BIGGER PICTURE You of course like being rewarded, but some rewards are more effective than others. Next, you’ll learn common types of rewards and the potential outcomes of specific reward systems. You’ll see how organizations use various criteria, such as results and behaviors, to distribute rewards, as well as why rewards can fail to motivate as intended. Implement rewards to generate desired outcomes. LO 6-5 Thankfully for all of us, many people perform their jobs for reasons other than money and other extrinsic rewards. Some of the best examples are first responders to disasters who do more than simply “punch the clock.” Justin Sullivan/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 227Performance Management CHAPTER 6 important to know what types of rewards you and others value most. This knowledge can make the difference in your getting what you want personally, as well as in your ability to effectively manage others. It can also assist you in identifying employers with whom you fit.73 For example, if you’re hard-charging, a high income is very important to you, and you like to be rewarded based on your own efforts, then it would be advisable to look for companies whose reward systems align with these preferences. You also can use your self-knowledge to “manage up.” The author of this book routinely told his managers shortly after he was hired which of the rewards available for that particular job he valued most. This helped his managers choose and provide rewards that would have the most positive impact. Kaiser Permanente, an integrated health care system in California, is opening its own medical school in 2020. To attract high caliber students and encourage them not to avoid relatively low-paying specialties (family medicine and pediatrics), it is not charging tuition for students in the first five years. These motives and actions are similar to those of New York University and Columbia’s medical schools, which also are eliminating tuition for their students. These are extremely valuable, as the median debt for medical school gradu- ates in 2017 was just under $200,000. And it seems to be working. NYU reported overall med school applications increased 47 percent, and those from applicants who identified as black increased 142 percent!74 Self-Assessment 6.2 will help you identify the rewards you value most and show you what a survey of employees revealed they valued most. FIGURE 6.3 Key Factors in Organizational Reward Systems Distribution Criteria Results Behaviors and actions Nonperformance factors Desired Outcomes Attract Motivate Retain Develop Engage Types of Rewards Extrinsic—financial and nonfinancial Intrinsic—meaningfulness and achievement What Rewards Do I Value Most? Please be prepared to answer these questions if your instructor has assigned Self- Assessment 6.2 in Connect. 1. Were your perceptions accurate? Why or why not? 2. What would Vroom’s expectancy theory (covered in Chapter 5) suggest you should do? 3. Would you generalize the actual survey results to all nonmanagerial employees? Why or why not? SELF-ASSESSMENT 6.2 CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 228 PART 1 Individual Behavior Distribution Criteria Organizations use three general criteria for distributing rewards: • Results. Tangible results include quantity produced, quality, and individual, group, or organizational performance. These are often accounting-type measures—sales, profit, or error rate. Employers increasingly include customer satisfaction. • Behavior and actions. Examples are teamwork, cooperation, risk taking, and creativity. • Nonperformance considerations. Examples are abundant, such as rewards linked to seniority or job title. Associate attorneys’ salaries are commonly linked to the number of years out of law school—first-year associates get paid a set salary, which differs from second-year associates, and so on. Night or weekend shifts often pay differently. Perks provided to executives, like use of a company plane or member- ship to a golf club, are nonperformance rewards. They get them just because they hold the job not because of what they do. Industries, companies, and jobs all differ, and so too should their performance and reward-distribution criteria. Many Internet companies, for example, track number of page views, registered users, and app downloads as performance criteria. These may or may not be relevant to individual employee, team, or organizational performance. Netscape founder, and now legendary tech investor, Marc Andreessen is leading a charge to do away with what he calls “vanity” or “bull#$!% metrics.” He argues that many common metrics are meaningless and don’t capture performance. “Download counts can easily be inflated if an app developer is willing to pay.”75 Digital and social media companies therefore have struggled to develop and utilize effective PM metrics, which are necessary to gauge performance and allocate rewards. Some examples for marketing via digital and social media are: • Reach and Impressions. Reach is the number of different people who view your post, while impressions are the number of times a given person views it. Think of it as breadth and depth. • Platform Engagement. This can be likes, retweets, shares, comments, etc. • Conversions. Of those that click or view how many actually take action, such as buy your product. This is an obvious way for many to measure return on investment (ROI) for investments in online advertising. • Relevancy Score. This is used to compare or test the relative interest of one poten- tial customer to others. You essentially present the same ad content to multiple customer groups, perhaps via different channels, and then focus your future resources on the one that showed the greatest interest.76 In sum, effective PM includes measures, rewards, and distribution criteria that are linked.77 Desired Outcomes of the Reward System As Figure 6.3 showed, a good reward system should not only attract and motivate talented people, but it should also foster development and keep talented people from leaving. A prime example is Tulsa-based QuikTrip, a gas station and convenience store chain. Good employee wages and benefits, training, and a friendly and supportive culture result in an annual turnover rate of just 13 percent. The industry average is 59 percent! An employee was quoted as saying, “We actually have to open new markets to create movement to give our employees an opportunity to advance because no one leaves.”78 The Applying OB box addresses the important topic of rewards and teams. Organizational Behavior: A Practical, Problem-Solving Approach 229Performance Management CHAPTER 6 Be Sure You Get the Outcomes You Desire Rewards come in many forms, both financial and nonfinancial. But most fundamen- tally rewards are exchanges—you are given this for doing that. At work you may be paid a cash bonus or your commission rate may increase for performing above and beyond your sales quota. While you are at school professors sometimes give you extra credit for doing well in an assignment or course. But whatever the case, whoever provides the reward should get what is desired or intended in exchange. There are three potential outcomes from rewards: 1. Desired outcome. You get more of what you intended and for which you are rewarding people. 2. Nothing. The reward can have no effect. 3. Undesired side effects. Rewards reinforce or motivate the wrong behaviors. For example, doctors and hospitals in the U.S. health care system have historically been compensated for the services they provide. This means providers make more money when they run more tests and provide more treatments—postoperative infections and procedure- related strokes are on average twice as profitable as cases that go smoothly. A study by Harvard Medical School, Bain Consulting Group, and Texas Health Systems found: Private-insurance and Medicare payments soared when surgeries went awry, outpacing extra treatment costs. In one example, a complication during an intestinal surgery . . . could lead to an intensive care stay, boosting payments five-fold. . . . On average, procedures with complications netted $15,700 versus $7,600 for procedures that went well.79 People should get paid for their expertise and work. But performance management is part of both the cause and the solution to this enormous challenge. This example illus- trates how the distribution of rewards can be both an input and a process in the Organizing Framework. The takeaway: Be sure your performance management system and associated rewards produce the desired outcomes and be mindful of undesirable side effects. Applying OB money is allocated too, be sure teams and individ- uals get the same. 2. Acknowledge assistance. Don’t take team mem- bers’ help for granted. The supporting cast needs to be explicitly recognized. 3. Show enthusiasm and fanfare. Be sure energy and attention for team incentives matches that for individuals. 4. Measure both! If teams are indeed valuable, create and utilize effective means for measuring team performance, just as you do for individuals. Many companies and leaders trumpet the impor- tance of teamwork—we win or lose together. Yet most of these same companies reward individuals and not teams. Such inconsistencies undermine teamwork and the effectiveness of PM. If teamwork is truly important, then the following recommenda- tions can ensure that PM practices send consistent signals. 1. Split 50-50. Awards, bonuses, and recognition should be split evenly. If there is an employee of the year, then be sure to have a team of the year. If Put the “I” in Team with Appropriate Incentives Organizational Behavior: A Practical, Problem-Solving Approach 230 PART 1 Individual Behavior Total and Alternative Rewards Historically, rewards programs were simply a matter of combining compensation with some mix of health insurance and vacation time. These of course still matter, but today leading organizations are offering far more complex and personalized packages.80 Besides the usual paycheck, the variety and magnitude of organizational rewards have evolved into a mind-boggling array, such as fertility services, child adoption assistance, college tuition reimbursement, college loan repayment, stock grants and options, and pet insurance. All these are extrinsic rewards, and it is common for nonwage benefits to be 50 percent or more of total compensation. The current and broader perspective on compensation is referred to as “total rewards.”  Total rewards  encompass not only compensation and benefits, but also personal and professional growth opportunities and a motivating work environ- ment that includes recognition, job design, and work–life balance. Table 6.6 lists and describes the key components of a total rewards perspective. This broader view of rewards has grown partly in reaction to stiffer competition and challenging economic conditions, which have made it difficult for cost-conscious organiza- tions to offer higher wages and more benefits each year. Employers have had to find alter- native forms of rewards that cost less but still motivate employees to excel. Fortune’s 100 Best Places to Work list provides a treasure trove of some of the most generous and interesting awards currently offered. Biotech giant Genentech was number one in the salary category in 2019 at $205,000 per year (up from $180,000 in 2018). This is far ahead of number two in the salary category, Atlassian, a software developer, and the most valuable tech firm in Australia, which pays an average of $167,000. Although that kind of money is certainly appealing, enterprise software company Work- Day (#4 in 2019) is quite creative with alternative rewards. They provide unlimited time off and onsite manicures, bike repairs, and car washes. And Wegman’s Food Markets, a grocery store chain and #3 on Fortune’s list of Best Places to Work, spent $50 million on employee development, $5 million on scholarships, and filled half of its open jobs inter- nally. Baptist Health South Florida also was a clear believer in employee development opportunities, as they filled 75 percent of their leadership positions with internal candidates.82 See the OB in Action box for an especially generous and long-term performance-oriented plan at Hilcorp. COMPONENT DESCRIPTION Compensation Base pay, merit pay, incentives, promotions, and pay increases Benefits Health and wellness care, savings and retirement planning, and paid time off Work–life effectiveness Policies and practices to help employees thrive at work and home Recognition Formal and informal programs that acknowledge employee efforts and behaviors that support the organization’s strategies and objectives Talent development Training, career development, and other support nec- essary to improve performance and advance careers TABLE 6.6 Components of a Total Rewards Perspective81 Organizational Behavior: A Practical, Problem-Solving Approach 231Performance Management CHAPTER 6 Bottom line: The most effective reward programs tend to align with employee preferences. But we know that rewards often don’t work as intended—let’s explore why and what to do about it. Why Rewards Often Fail and How to Boost Their Effectiveness Here are some of the reasons rewards often fail to motivate. 1. Too much emphasis on monetary rewards. 2. Sense in recipient that extensive benefits are entitlements. 3. Fostering of counterproductive behavior (as discussed in Chapter 2). 4. Long delay between performance and reward. 5. One-size-fits-all rewards. 6. Use of one-shot rewards with short-lived motivational impact. 7. Continued use of demotivating practices such as layoffs, across-the-board raises and cuts, and excessive executive compensation.86 Hilcorp is the largest independent energy explora- tion and production company in the U.S. One of the company’s core values is alignment. “When Hilcorp wins, we all win” is how they state it on their web- site.84 The company certainly seems to walk the talk when it comes to compensation. CEO Greg Lalicker describes it this way, “We want it to be in every- body’s best interest that Hilcorp succeeds and, when we do succeed, that everybody shares the rewards equitably.”85 Sounds like he took this OB course. Goal Alignment The company sets goals over periods of five years, and oil exploration and production proj- ects typically occur over the course of years. And if the company meets those targets everybody is compen- sated very generously. For instance, from 2006 to 2011, the goal was to double production from 40,000 barrels per day to 80,000, reserves from 125 million to 250 million, and double the value of the business from $1 billion to $2 billion. Hilcorp met all of these targets! Perhaps the only thing more impressive than dou- bling these key performance metrics were the associ- ated rewards. Every employee received $50,000 to spend on a car. When the company met the goals for 2011 to 2015 each employee received $100,000 cash to spend how they wish. The rewards are pro- rated for employees not at Hilcorp the entire period. And That’s Not All Besides production goals, Hil- corp rewards employees with annual bonuses up to 60 percent of an employee’s salary which are linked to overall company performance, measured with production rate, midstream income, operating costs, and reserves. Since safety is so fundamentally important In many industries, especially oil and gas production, you’d think the company would provide incentives or bonuses linked to this. Nope. When asked about this Mr. Lalicker said, “Safety is a requirement, not an upside. If people aren’t working hard to operate safely, then they are fired.” YOUR THOUGHTS? 1. Describe three benefits of the reward practices at Hilcorp. Explain not only the benefit but how or why it works. 2. What are the downsides or potential challenges with this program’s emphasis on organization- level rewards? 3. Assume you are a founder and CEO of Hilcorp, what you would you do when individual employ- ees don’t perform in this system? Describe and justify your actions. A Car, $100,000, and There’s More Where That Came from at Hilcorp83 OB in Action Organizational Behavior: A Practical, Problem-Solving Approach 232 PART 1 Individual Behavior One way to use these findings is as a checklist and determine to what extent your employer’s, or another company’s, practices suffer from these shortcomings. Then apply your new knowledge and help ensure that managers and employers get more for their reward bucks! How to Boost the Effectiveness of Rewards One means for improving the effec- tiveness of almost any reward system is to involve employees in devising the system. Recall the discussion of motivation and procedural justice in Chapter 5. Including employees in the design, selection, and assessment of rewards programs increases the chance employees will perceive the rewards as fair and valuable. (Valuable rewards are the valence outcomes in expectancy theory from Chapter 5.) Involvement also fosters employee engagement— discussed in Chapter 2—because it makes them feel valued. A major and common problem with rewards is they don’t always work as intended. The Problem-Solving Application provides an excellent example and opportunity to apply your knowledge and build your skill. Incentives, Performance, and Schools Like organizations in other industries, the Houston Independent School District (HISD) believed it could direct, motivate, and improve performance with monetary rewards. The goal was to improve the skills and test scores of students at 40 underper- forming schools. Officials thought the underlying reasons for the underperformance were low performing teachers, as those at the target schools were twice as likely to be rated “ineffective” or “needs improvement” than in well-performing schools. Worse still, teachers at these same schools were half as likely to be rated “highly effective.” School district leaders reasoned that offering money—$5000 signing bonuses— would attract better teachers to the poor performing schools. Officials spent nearly $7 million to incentivize highly rated teachers to move to the target schools in the 2017–18 school year, and they planned to spend a similar amount in 2018–2019. But there was a problem—it didn’t work. The 40 schools expe- rienced tremendous turnover—40–60 percent of teachers at worst schools quit—but the teachers who replaced them had nearly identical (poor) rat- ings when they arrived. This left officials scratching their heads. The dis- mal results might have been due to the fact they had no performance criteria for teachers to qualify for the bonus and move to one of the 40 schools. Moving to the worst performing schools could be perceived as very risky, as highly rated teachers’ performance could drop in a more challenging, underperforming school. Adding to the risk, some teachers would presumably be giving up a position at a “better” school. Of course, it also was possible $5000 just wasn’t enough for many.87 Problem-Solving Application Apply the 3-Step Problem-Solving Approach Step 1: Define the problem HISD officials wanted to fix. Step 2: Identify the potential causes of this problem. (Consider also the common reasons rewards fail to motivate.) Step 3: Make your recommendations. Organizational Behavior: A Practical, Problem-Solving Approach 233Performance Management CHAPTER 6 Pay for Performance  Pay for performance  comprises merit and/or bonus pay based on individual-, group-, or organization-level measures and involving individual, group, or organiza- tion rewards.88 Therefore, it is compensation above and beyond basic wages and salary, and its use is consistent with the expectancy theory of motivation.89 Most often pay for performance is referred to as variable pay because it most depends or varies based on some behavior or outcome, and variable pay has grown as a percentage of total compensation for decades. PayScale’s Compensation Best Practices Report of 2018 revealed 71 percent of companies surveyed used some form of variable pay, and 79 percent of companies considered top-performing did.90 This means that over the course of your career an increasing portion of your pay will be variable. Pay for performance is used to align employees’ interests and behaviors with those of the department and organization, as it links your behaviors and outcomes to objectives or goals at some level.91 Figure 6.4 outlines the most commonly used types today, along with the frequency of use according to size and type of company, and Figure 6.5 displays the most common variable pay by job type. FIGURE 6.4 Different Types of Variable Pay and Percentage and Size of Company That Uses Each92 Types of Variable Pay by Organizational Size 0% 10% 2% 2% 2% 1% 17% 23% 24% 21% 26% 24% 26% 20% 32% 33% 31% 29% 50% 37% 21% 11% 52% 50% 39% 31% 54% 52% 50% 23% 67% 56% 38% 14% 71% 71% 70% 62% 4% 4% 3% 6% 20% 30% 40% 50% % of Respondents B on us T yp e 60% 70% 80% Individual Incentive Bonuses Hiring Bonuses Employee Referral Bonus Spot Bonuses or Other Retention Bonuses Discretionary Bonus Programs Company-wide Bonus Team Incentive Bonuses Profit Sharing Market Premium Bonus Other Individual incentive bonuses are most prevalent for all org sizes Small Mid Large Enterprise SOURCE: PayScale, Inc. “Variable Pay Trends into 2018: Who Gets It, What Types and Why?” Accessed June 14, 2019. https://www.payscale.com/compensation-today/2018/04/variable-pay-trends. Organizational Behavior: A Practical, Problem-Solving Approach 234 PART 1 Individual Behavior You’ll notice the most used types of variable pay are targeted at individual perfor- mance, but as you climb in the organization and manage others variable pay increasingly becomes linked to team and organization-level performance. Eighty-two percent of executives’ variable pay is based on organizational performance, versus 43 percent for nonmanagers. It also is more common for certain types of roles. Sales and management roles are more likely to have outcomes appropriate for variable pay than are engineers or accountants.93 A useful way to differentiate between types of pay for performance is whether they reward past or future performance. Bonuses are most often given for past performance and incentives are intended to motivate future performance. The most basic form of bonus pay is the traditional piece-rate plan, wherein an employee is paid a specified amount of money for each unit of work. Many online jobs are paid this way, such as the amount of data entered, recordings transcribed, or customer service calls taken.94 Freelancer, for instance, promotes itself as the “world’s largest online platform for finding jobs.” Users post the details of work they want done and others bid on the work. This is a classic but contempo- rary form of piece-rate work.95 Girl Scout cookies are another example. Approximately one million Girl Scouts sell roughly 200 million boxes and generate $776 million. This is a lot of dough (we couldn’t resist). Thin mint cookies are the perennial top seller, and the money stays where it is earned. If the Scouts in your area sell more, their council keeps more for their own activi- ties and projects.96 Sales commissions are one of the most popular incentives, wherein a specified per- centage or amount of money is paid for particular or groups of transactions. Jen Tadin, National Sales Director for Small Business at Gallagher, an insurance and risk management company, uses a 60-40 plan. Sixty percent of sales rep’s compensation is guaranteed in the form of salary, and 40 percent is available in commissions on sales. She takes it a step further and links commission payouts to company goals, as well as client retention, client count, and total revenue. Microsoft similarly aligns sales commissions with company goals, specifically cloud computing and new customers.97 A word of caution regarding sales incentives is offered by Jason Jordan, of Vantage Point Performance (sales consulting and coaching). Effective incentives should do two FIGURE 6.5 Variable Pay by Type and Organizational Level 0% Sales Employees Non-Exempt Employees Professional, Technical and Administrative Exempt Employees Directors and Managers Executives 20% 40% 60% 80% 100% Percent Using Variable Pay Variable Pay by Organizational Level % of Orgs That Pay Out Variable Pay on an Annual Basis Bonus Incentive Commissions None SOURCE: PayScale, Inc. “Variable Pay Trends into 2018: Who Gets It, What Types and Why?” Accessed June 14, 2019. https://www.payscale.com/compensation-today/2018/04/variable-pay-trends. Organizational Behavior: A Practical, Problem-Solving Approach 235Performance Management CHAPTER 6 things: motivate the right behaviors and reward successful outcomes. Too often leader- ship designs incentive plans to do a third thing: discourage bad behaviors. Sales incen- tives cannot take the place of sales management, so don’t try to use them as ‘managers in absentia.’”98 Making Pay for Performance Work As we’ve done throughout the book, we use research and practice to guide your learning. Research shows mixed results for pay for performance—sometimes it increases perfor- mance as intended, other times not, and like other rewards sometimes it creates undesir- able outcomes. For instance, executives and the organizations they lead are increasingly expected to deliver not only financial performance but also corporate social perfor- mance. The little research that exists shows that simply setting social goals for executives is not enough to improve the organization’s social performance outcomes. However, if the targets are quantifiable (target percentage, amount, or other clear measures) and linked to compensation, then social performance tends to improve.99 Although the researchers did not examine this directly, it seems that making these goals SMART makes a difference. Companies with the best pay-for-performance results tend to: • Pay top performers substantially more than their other employees. • Reduce “gaming” of the system by increasing transparency. • Utilize multiple measures of performance. • Calibrate performance measures to ensure accuracy and consistency.100 Most experts agree it is critically important to ensure pay for performance practices fit the situation and align with the organization’s strategy and culture.101 Now let’s learn the mechanisms by which rewards change our behavior, along with how and when they are administered can make a difference. Selling Girl Scout cookies is a famous form of piece-rate work. Each year Girl Scouts sell approximately 200 million boxes and take in $776 million. Andy Matsko/AP Images Organizational Behavior: A Practical, Problem-Solving Approach 236 PART 1 Individual Behavior 6.6 REINFORCEMENT AND CONSEQUENCES Providing consequences is the last component of the performance management process, and the way rewards and consequences more generally are administered can make or break performance management efforts. Effective use of these OB tools is particularly important given that pay raises and promotions are often powerful career outcomes in the Organizing Framework. They often influence perceptions of fairness, intentions of quit- ting, emotions, and a range of behaviors at work. For instance, have you ever worked your butt off and gotten results, yet neither your effort nor performance were acknowledged? Have you ever witnessed a colleague, teammate, or friend be rewarded handsomely when you think they didn’t deserve it? The answer to both questions is undoubtedly “yes,” and as you thus know the resulting impact on your motivation and future performance can be significant and negative. To help you understand and use consequences effectively, we begin with behavior modification and reinforcement techniques. The Law of Effect—Linking Consequences and Behaviors In the early 1900s psychologist Edward L. Thorndike observed in his lab that a cat would behave randomly when placed in a small box with a secret trip lever that opened a door. However, once the cat had accidentally tripped the lever and escaped, it would go straight to the lever when placed back in the box. This observation led to Thorndike’s now famous  law of effect,  which says behavior with favorable consequences tends to be repeated, and behavior with unfavorable consequences tends to disappear.102 This was a dramatic departure from previous notions that behavior was the product of instincts. Using Reinforcement to Condition Behavior B. F. Skinner refined Thorndike’s work and developed what came to be known as behavior- ism as he dealt strictly with observable behavior. He believed it was pointless to explain behavior in terms of unobservable inner states, such as needs, drives, attitudes, or thought processes. He instead drew an important distinction between two types of behavior: respondent and operant behavior.103  Respondent behavior  describes automatic reactions to stimuli, or stimulus- response (S-R), like when you are startled by an unexpected loud noise or yank your hand from a hot surface. These behaviors are obviously important, but not nearly as common and consequential as  operant behavior,  behaviors that are learned and occur when we “operate on” the environment to produce desired consequences. It can be help- ful to think of this as response–stimulus (R–S) model or operant conditioning, as it describes things we do to generate desired behaviors and are the essence of much of OB. THE BIGGER PICTURE In this section, you’ll learn about three especially effective and practical means for influenc- ing your behavior and that of others: (1) the law of effect and the way it relates to respondent and operant conditioning; (2) common types of reinforcement; and (3) the way managers can increase the effectiveness of reinforcement using a variety of reinforcement schedules. Use reinforcement and consequences to improve performance. LO 6-6 Organizational Behavior: A Practical, Problem-Solving Approach 237Performance Management CHAPTER 6 Contingent Consequences According to Skinner’s operant theory, contin- gent consequences control behavior in one of four ways: 1. Positive reinforcement. 2. Negative reinforcement. 3. Punishment. 4. Extinction. Of critical importance is the term contin- gent, which means there is a purposeful if- then link between the target behavior and the consequence. You therefore should first think of the target behavior and whether you want to increase or decrease it, and then choose the appropriate consequence (see Figure 6.6). We next look more closely at the four types of consequences. Increase Desired Behaviors  Positive reinforcement  is the process of strengthen- ing a behavior by contingently presenting something appealing. A behavior is strengthened when it increases in frequency and weakened when it decreases in frequency. An excellent example comes from BP in the years immediately following the horrific Deep Water Horizon oil spill in the Gulf of Mexico. Newly appointed CEO Bob Dudley based 100 percent of employees’ variable pay (bonuses) on safety for the fourth quarter of 2010.104 This was a reward or reinforcer for safe behaviors—better safety, more money.  Negative reinforcement  also strengthens a desired behavior by contingently withdrawing something displeasing. Many probationary periods for new hires are applications of negative reinforcement. During probation periods, often your first 30, 60, or 90 days on a new job, you need to have weekly meetings with your boss or have somebody sign off on your work. Once you’ve demonstrated your skill these require- ments are removed. B. F. Skinner taught pigeons how to pace figure eights and how to bowl by reinforcing the underweight (and thus hungry) birds with food when- ever they more closely approximated target behaviors. Bettmann/Getty Images FIGURE 6.6 Contingent Consequences in Operant Conditioning Nature of Consequence Positive or Pleasing Negative or Displeasing B eh av io r– C on se qu en ce R el at io ns hi p Contingent Presentation Contingent Withdrawal Positive Reinforcement Behavioral outcome: Target behavior occurs more often Punishment Behavioral outcome: Target behavior occurs less often Punishment (response cost) Behavioral outcome: Target behavior occurs less often Negative Reinforcement Behavioral outcome: Target behavior occurs more often (no contingent consequence) Extinction Behavioral outcome: Target behavior occurs less often Organizational Behavior: A Practical, Problem-Solving Approach 238 PART 1 Individual Behavior Unfortunately, most people confuse negative reinforcement with negative feedback, which is a form of punishment. Negative reinforcement, as the word reinforcement indicates, strengthens a desirable behavior because it provides relief from something undesirable (paperwork, meetings, or yelling). Decrease Undesired Behaviors  Punishment  is the process of weakening behavior through either the contingent presentation of something displeasing or the contingent withdrawal of something positive. The U.S. Department of Transporta- tion now fines airlines up to $27,500 per passenger for planes left on the tarmac for more than three hours. This policy reduced reported cases from 535 to 12 in the first year it was implemented.105 Similarly, Allegiant Airlines was fined $225,000 for not keeping their planes cool enough during tarmac delays.106 However, remember the possibility of unintended consequences mentioned earlier. A study of the tarmac delay rule found it resulted in more cancelled flights, as airlines tried to avoid fines. This of course requires passengers to find another flight costing even more time.107 Approximately 51 percent of employers providing health insurance use money to motivate employees to participate in wellness programs and health screening. For instance, a form of negative reinforcement commonly used is the reduction of insurance premiums for employees who participate. You’d rather not pay insurance premiums, which means reducing premiums when you participate (get healthy) is contingently removing or limit- ing those undesirable payments.108 Figure 6.7 shows the percentage of employers that offer various types of incentives for health exams. Be sure to remember punishment needs to be used sparingly and wisely. Perceptual errors and biases you’ve learned about in previous chapters also apply to punishment. Specifically: 1. Negative events are far more impactful on people than positive events. People typically exert more energy to avoid losses and negative events than they do to receive positive outcomes. FIGURE 6.7 Among Large Firms O�ering Workers an Incentive to Complete a Biometric Screening, Percentage of Firms with Various Types of Incentives, by Firm Size, 2018 0% Other Additional Paid Time O Eligibility for Other Wellness Rewards Cash, HRA/HSA Contributions, or Avoid a Payroll Deduction Gift Cards, Merchandise, or Ra€e Entries Lower Premium Contributions or Cost Sharing 10% 52% 46% 39% 36% 4% 4% 20% 30% 40% 50% 60% 70% SOURCE: Kaiser Family Foundation. “2018 Employer Health Benefits Survey.” Accessed June 14, 2019. https://www.kff.org/ report-section/2018-employer-health-benefits-survey-summary-of-findings/. Organizational Behavior: A Practical, Problem-Solving Approach 239Performance Management CHAPTER 6 2. Negative events stick with us much longer than positive events. This means you are likely to remember and be affected by punishment (demotion) or negative feedback (poor performance review) much longer than a promotion or positive review. 3. Punishment is more likely to be informal, unless of course you are put on a perfor- mance improvement plan or fired, and thus at the discretion of your manager. To elaborate, organizations most often have established policies and practices for allocat- ing rewards, but they rarely devote as much attention and formality to punishments. One important implication is the use of punishments will be far more variable.109 Weakening a behavior by ignoring it or making sure it is not reinforced is referred to as  extinction.  Not returning calls, unfriending, or otherwise not responding are extinction tactics. A good analogy for extinction is the fate of your houseplants if you stopped watering them. Like a plant without water, a behavior without occasional rein- forcement eventually dies. Although they are very different processes, both punishment and extinction have the same weakening effect on behavior. The bottom line: Knowing the difference between these various forms of contingent consequences provides you with numerous powerful tools with which to manage yourself and others. Put another way, you just learned four tools for influencing behavior. Most people think of and use only two—positive reinforcement and punishment (negative feed- back). Apply your knowledge and get ahead! Positive Reinforcement Schedules You can supercharge or at least enhance the effectiveness of positive reinforcement (rewards) by managing the timing or schedule of reinforcement. Continuous and intermit- tent reinforcement schedules are two common means for timing the administration of reinforcers. Continuous Reinforcement If every instance of a target behavior is reinforced, then a   continuous reinforcement  (CRF) schedule is in effect. Just as you train your dog to do a new trick by providing a reward each time he or she does it successfully, CRF Like dogs, humans respond to reinforcement. To make this work for you, identify a behavior you want somebody to perform, and when they do be sure to shower them with praise, recognition, or some other form of reward they value and tell them it is because of what they did. The behavior will likely happen again. Darkcloud/iStock/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 240 PART 1 Individual Behavior schedules are especially useful when employees learn a new task or skill. Assume, for instance, you are asked to conduct an analysis of the individual purchasing patterns of your employer’s largest customers. Your manager could help you develop this skill by giving you feedback as you complete the analysis for each customer. This feedback and recognition reinforce your performance on this new task. However, you can see that while this reinforcement is especially helpful and appreciated for the first few customer analyses, it likely loses its effect after the 10th, 20th, and 30th customer. Enough already! This scenario shows how CRF is susceptible to perceptions of entitlement and rapid extinction if the link is broken. One way to help guard against the fading benefit of reinforcers is to use intermittent schedules.  Intermittent reinforcement  consists of reinforcement of some but not all instances of a target behavior. Table 6.7 shows four subcategories of intermittent schedules along with examples. EXAMPLE Of the many reasons people don’t save enough money, one is motivation. One way banks can motivate people to save is to utilize variable schedules in the same way slot machines and lotteries do—provide an opportunity to win big. To illustrate, assume your savings account balance averages $1,000 per month, and you earn 5 percent interest. One way to get you to maintain this balance and save even more is to offer you an opportunity to win prizes of $50, $500, or $5,000 if you do. The trade- off, however, is you only earn 3 percent guaranteed. Like the gambling games, people are motivated to behave in ways with the potential to earn more. Of course, the devil is in the details, but when managed appropriately by the bank, people are not gambling away their money, but instead are maintaining higher average savings balances and earning approximately the same guaranteed return (in this example, 5 percent). Researchers at the University of Maryland have run experiments with similar results.110 TABLE 6.7 Reinforcement Schedules, Examples, Advantages, and Disadvantages REINFORCEMENT SCHEDULE EXAMPLES ADVANTAGES DISADVANTAGES Fixed ratio Piece-rate pay; bonuses tied to the sale of a fixed number of units Clear and predictable link between the behavior and the reinforcer Costly to monitor perfor- mance and administer reinforcers (like money); reinforcers lose effect over time Variable ratio Slot machines that pay after a variable number of pulls; lotteries that pay after a variable number of tickets sold Strong motivation to continue until reinforcer is received; less costly than fixed ratio Some desired behaviors will not be rewarded; potentially long periods between reinforcers (such as payouts) Fixed interval Paychecks (every two weeks or once a month); annual bonuses; proba- tionary periods Clear and predictable link between the behavior and reinforcer; less costly than fixed ratio Inconsistent effort and performance over the interval (majority of effort/ performance occurs near reinforcer) Variable interval Random supervisor “pats on the back”; spot rewards; random audits (financial); random drug tests of athletes and employees; pop quizzes Consistent and strong moti- vation to perform over time; least costly schedule due to relatively little monitoring and administration Some desired behaviors will not be reinforced; potentially long periods between reinforcers (payouts) Organizational Behavior: A Practical, Problem-Solving Approach 241Performance Management CHAPTER 6 Applying knowledge of biases and reinforcement you’ve learned in this course has tremendous potential, as the Federal Reserve Bank reported 24 percent of Americans don’t have access to $400, and not all of these people are poor.111 Organizations Typically Rely on the Weakest Schedule Variable ratio and variable interval schedules of reinforcement generally produce the strongest behaviors and are most resistant to extinction. As gamblers will attest, vari- able schedules hold the promise of reinforcement after the next roll of the dice, spin of the wheel, or pull of the lever. Continuous and fixed schedules, in contrast, are the least likely to elicit the desired response over time. Nevertheless, the majority of work orga- nizations rely on fixed intervals of reinforcement, such as hourly wages and annual reviews and raises. Reinforcement Schedules and Performance Figure 6.8 illustrates the relative effect of the schedules on performance over time. Consider three professors who teach different sections of the same OB course. Assume their students are essentially equal in age, experience, and GPAs across the three sections. This is the scenario: • Professor Blue bases student grades solely on short quizzes given at the beginning of every class (continuous reinforcement). • Professor Black bases grades on a midterm and final exams of equal weight (fixed interval). • Professor Red uses a number of unannounced or pop quizzes (variable interval). We expect the level of preparation for each class and overall academic performance (preparation and learning) to follow the patterns in Figure 6.8. Professor Blue’s students will start fast and prepare diligently for each class. However, they will then settle into a routine and a common level of preparation. Over time they will figure out what is required and do less. Some may even quit preparing once they have a clear sense of what their overall grade will be. The pattern for Professor Black’s students is all too common. They start slowly, know- ing there is plenty of time before the midterm. When it grows near the intensity of their preparation increases and some begin cramming. Once the midterm passes they discon- nect for a while until they ramp up again for the final. In contrast, Professor Red’s students will likely maintain a higher average level of preparation throughout the course, because there is a chance they will have a pop quiz and be graded in every session. The bottom line: Students generally don’t like unannounced or pop quizzes. However, if the professor’s goal is increased student preparation and learning, then variable-interval grading is one means for generating a higher average level of student performance. These same patterns and results apply in business settings too. For instance, many sales and professional service jobs such as accounting and law have monthly numbers to meet, like sales or billable hours. This often means employees get far more work done in the last few days of the month than in the beginning (see Figure 6.8). Practical Implications for Using the Strongest Schedule In general, any type of consequence—whether reward or punishment—is more effective when administered near the time of the behavior. Effectiveness wears off as time passes. You are unlikely to change your professor’s grading format or the timing of your employer’s pay and bonus schedules; however, there are many ways you can put your knowledge of positive reinforcement sched- ules to use within the confines of existing practices. Spot Rewards. Spot rewards are highly effective. If your coworker has worked hard to make your project a success, recognize her efforts via an e-mail to the Organizational Behavior: A Practical, Problem-Solving Approach 242 PART 1 Individual Behavior entire team including your manager. Your manager, in turn, may decide to give Friday off to those who complete their current work satisfactorily and ahead of schedule. Variable Rewards/Bonuses. Entrepreneurs can especially benefit from applying knowledge of reinforcement schedules. Assume you started your own business and, like many new business owners, you are short on cash. You would like to provide regular bonuses and pay raises, but you can afford monetary rewards only when your company secures a new customer or a big order. The variable nature of these rewards not only recognizes employees’ efforts and success, but also motivates them to work hard in the future because they know that such efforts are recognized and reinforced. Celebrations. When it comes to school, we advocate celebrating and thus reinforc- ing “victories,” such as completing a paper, achieving a good score on an exam, and ending a semester in which you worked hard and performed well. Scattering these reinforcers throughout the semester can help reenergize you to work hard in the future, especially if you make these rewards contingent on good behavior and outcomes. All three of these examples apply to variable schedules, and we encourage you to think of your own examples and consider their effectiveness. Reinforcement schedules, like the larger process of performance management, are often limited only by your creativity and willingness to apply your knowledge. FIGURE 6.8 Reinforcement Schedules and Performance Midterm Exam 30 Days Time: Pe rf or m an ce Final Exam 60 Days Variable Avg PerformanceVariable Fixed Avg PerformanceFixed Continuous Avg PerformanceContinuous SOURCE: ©2014 Mel Fugate Organizational Behavior: A Practical, Problem-Solving Approach 243Performance Management CHAPTER 6 Applying knowledge and best practices related to PM is a way to get ahead throughout your career, and to help you, we’ve distilled some pointed applications. Takeaways for Me There are five notable ways to excel as an employee. 1. Look for companies and managers with PM practices that align with your personal val- ues, preferences, and aspirations: If you like continual feedback and large differentials between top and low performers, find opportunities that match. 2. Compare what managers and organizations say they value and what they reward: Many will say they value and reward performance, but they give everyone the same 3 percent raise or promote people based on tenure rather than performance. 3. Use Table 6.2 to build your own goal commitment: This alone can set you apart from the competition. 4. Ask for regular feedback if you’re not already given it: This step will help you avoid surprises during your reviews and boost your performance in between. 5. Using Self-Assessment 6.2, identify the rewards you value most, then tell your managers which available rewards you value most: Be sure to think broadly about rewards, and don’t think only about the money. If you value time (vacation), autonomy (flexibility to work from home), or development (tuition benefits), making these part of your total rewards can enhance the value of your compensation. Takeaways for Managers There are seven takeaways that will prove useful as a manager. 1. Immediately increase your management effectiveness: Ensure that you set clear expecta- tions and provide regular and effective feedback for those you manage. 2. Make explicit and clear links between the rewards you provide and the behaviors and/or outcomes the rewards are intended to signal. 3. Practice the recommendations in Table 6.2 to boost goal commitment: This, along with ensuring your people set SMART goals, will help set them up to win. THE BIGGER PICTURE We conclude this chapter with a number of practical applications of PM knowledge and tools to improve your effectiveness as both an employee and manager. 6.7 MAKING THE CONNECTION: HOW CAN I USE GOALS, FEEDBACK, REWARDS, AND POSITIVE REINFORCEMENT TO BOOST EFFECTIVENESS? Describe the implications of performance management for you and managers. LO 6-7 Organizational Behavior: A Practical, Problem-Solving Approach 244 PART 1 Individual Behavior 4. Guard against common perceptual errors when evaluating performance: Be sure you effectively measure the appropriate elements of performance (both quantitative and qualitative) for a particular job and individual. 5. Provide more feedback: Apply what you learned here to make it more effective (see Table 6.5) and focus on development more than evaluation. Feedback is a skill; practice it and you’ll get better. 6. Be certain your rewards are delivering the intended outcomes: Clearly linking them to expectations helps. 7. If teamwork is important and truly valued, then be certain your PM practices send such signals. Organizational Behavior: A Practical, Problem-Solving Approach 245Performance Management CHAPTER 6 In our coverage of performance management, you learned how you can use goals, feedback, rewards, and reinforcement to boost effective- ness. Reinforce and consolidate your learning with the Key Points and Organizing Framework. Then challenge your mastery of the material by completing the Problem-Solving Application Case and Legal Challenge/Ethical. Key Points for Understanding Chapter 6 You learned the following key points. 6.1 THE ELEMENTS OF EFFECTIVE PERFORMANCE MANAGEMENT • Effective performance management (PM) is a process of defining, monitoring, reviewing, and providing consequences. • PM is often used for employee-related deci- sions and development. • Employee perceptions of the value and effec- tiveness of PM are often very low. 6.2 HOW AND WHY GOAL SETTING GIVES YOU AN ADVANTAGE • Goal setting is critical to effective PM. • Both learning and performance goals can be used. • SMART goals are more likely to be achieved. • Goal commitment, support and feedback, and action plans foster goal achievement. • PM can be improved using behavioral, objec- tive, and task/project goals. 6.3 HOW MONITORING AND EVALUATION CAN IMPROVE YOUR PERFORMANCE AND ABILITY TO MANAGE OTHERS • Monitoring performance requires making effective measurements of progress and outcomes. • Evaluation requires comparing performance measures to expectations or goals. • Performance evaluation is often hampered by perceptual errors. • Multi-rater or 360-degree feedback can make performance evaluation more accurate. 6.4 APPLYING KNOWLEDGE OF FEEDBACK AND COACHING TO REVIEW AND IMPROVE PERFORMANCE • Two basic functions of feedback are to instruct and motivate. • Sources of feedback include others, the task, and yourself. • The effectiveness of positive and negative feedback is greatly influenced by the receiv- er’s perceptions. • Coaching helps translate feedback into desired change. 6.5 IMPLEMENTING REWARDS TO GENERATE DESIRED OUTCOMES • Rewards can be extrinsic or intrinsic. • Rewards are commonly distributed based on results, behavior, and nonperformance con- siderations. • Total and alternative rewards are increasingly common practices. 6.6 USING REINFORCEMENT AND CONSEQUENCES TO IMPROVE PERFORMANCE • Providing contingent consequences is funda- mental to effective reinforcement. • Both positive and negative reinforcement increase desired behaviors. • Punishment and extinction both decrease undesirable behaviors. • The schedule on which reinforcers are administered can increase their effectiveness. What Did I Learn? Organizational Behavior: A Practical, Problem-Solving Approach 246 PART 1 Individual Behavior outcome across the three levels of OB. At the indi- vidual level these outcomes are task performance, work attitudes, well-being/flourishing, citizenship and counterproductive behaviors, turnover, career outcomes, and creativity. Group and team-level performance, along with group satisfaction, cohe- sion, and conflict, are similarly related. As for the organizational level, performance management practices link to accounting/financial performance, customer satisfaction, reputation, and even an organization’s overall survival. Please observe the roles of regulators, competition, and leadership as inputs and processes affecting PM and its associated outcomes. 6.7 HOW CAN I USE GOALS, FEEDBACK, REWARDS, AND POSITIVE REINFORCEMENT TO BOOST EFFECTIVENESS? • Knowledge and application for PM can guide your efforts and set you apart from others. • PM tools are invaluable for managers who seek to realize the performance potential for their employees and themselves. The Organizing Framework for Chapter 6 As shown in Figure 6.9, performance manage- ment practices are associated with nearly every FIGURE 6.9 Organizing Framework for Understanding and Applying OB ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. INPUTS PROCESSES OUTCOMES Person Factors Situation Factors • Competition, Regulators, and Leadership Individual Level • Performance management practices Group/Team Level Organizational Level • Leadership Individual Level • Task performance • Work attitudes • Well-being/flourishing • Citizenship behavior/ counterproductive behavior • Turnover • Career outcomes • Creativity Group/Team Level • Group/team performance • Group satisfaction • Group cohesion and conflict Organizational Level • Survival • Accounting/financial performance • Customer satisfaction • Reputation Organizational Behavior: A Practical, Problem-Solving Approach 247Performance Management CHAPTER 6 Money is an important tool for both attracting and moti- vating talent. If you owned a company or were its CEO, you would likely agree and choose performance man- agement practices to deliver such outcomes. It also is possible you’d use incentives to help align your employees’ interests, behaviors, and performance with those of the company. After all, countless companies have used incentives very successfully, but not all. The incentives used by Wells Fargo had disastrous consequences for employees, customers, and the company itself. THE SCENARIO AND BEHAVIORS A client enters a bank branch and opens a checking account. The performance expectations of the banker that helped open the account were to open eight accounts for each customer, which meant he or she needed to persuade that customer to open seven additional accounts! This resulted in the banker then attempting to open a savings account and maybe a credit card account, simple enough. But the problem happened when the customer left without opening additional accounts and many bankers went ahead and did so anyway without the customer’s consent. Customers who had mortgages with the bank some- times had insurance policies opened without their knowledge. The bank also financed automobiles for many customers, and insurance was also often added unknowingly to these. Small business customers were frequently overcharged for credit cards and other ser- vices. More generally, customers for one product were cross-sold other products, and along with many of these additional accounts there were fees. The increased number of accounts helped employees meet their numbers, and the fees provided still more income for the bank.112 Even after all of these efforts, many bankers still fell short of their goals and opened accounts in family mem- bers’ names. One branch manager opened 24 accounts in her teenage daughter’s name and 21 In her hus- band’s. Other reports include Wells Fargo bankers can- vassing employees at stores in which they shopped.113 Pet insurance was added in some instances!114 Some sham accounts were closed once the employee received credit, but many remained open, charging fees and affecting customers’ credit. THE DAMAGE TO CUSTOMERS AND EMPLOYEES Wells employees created approximately 3.5 million fake accounts; even now precise numbers are difficult to obtain. But it seems as if 1.5 million deposit and 500,000 credit card accounts were opened without customer consent, and it erroneously foreclosed on over 400 mortgages and repossessed thousands of cars. Over 800,000 customers with auto loans were charged for auto insurance.115 The list goes on. The negative consequences within Wells Fargo also have been enormous. CEO John Stumpf was ousted along with former head of community banking, Carrie Tolstedt. Seventy-five million dollars in compensation was clawed back from these two executives, as it was considered ill-gotten and due to illegal or at least unprofessional behaviors. The same executives lost additional millions in compensation, and approximately 5,300 employees were fired. Numerous regulatory agencies fined Wells Fargo for nearly $200 million, the company’s stock underperformed its competitors’, and it is difficult to estimate the cost of damage to the com- pany’s reputation and the resulting lost business.116 Above all, there are the incalculable costs to custom- ers in money, frustration, ruined credit, lost vehicles, and lost homes. THE CULPRITS Much of this carnage has now been attributed to per- verse incentives and poor leadership. Investigations revealed that both Stumpf and Tolstedt were well aware of these unethical behaviors, but they turned a blind eye or even encouraged these behaviors. It was reported that Tolstedt repeatedly denied and resisted complaints about goals being unachievable and prob- lematic.117 But what about the thousands of employees that actually opened the accounts? When writing about the Wells Fargo scandal, Professor Elizabeth Tippett noted, “Research suggests that ethical behavior is not about who you are or the values you hold. Behavior is often a function of the situation in which you make the decision, even factors you barely notice.”118 Another interesting detail regarding performance expectations is that the eight-account expectation for every customer was only three 10 years earlier. It also is important to note that this sort of cross-selling PROBLEM-SOLVING APPLICATION CASE Incentives Gone Wrong, Then Wrong Again, and Wrong Again Organizational Behavior: A Practical, Problem-Solving Approach 248 PART 1 Individual Behavior C. Use details in the case to determine the key problem. Don’t assume, infer, or create problems that are not explicitly included in the case itself. D. To refine your choice, ask yourself, why is this a problem? Explaining why helps refine and focus your thinking. Focus on topics in the current chapter, because we generally select cases that illustrate concepts in the current chapter. STEP 2: Identify causes. Using material from this chapter and summarized in the Organizing Framework, identify what are the causes of the problem you identified in Step 1? Remember, causes tend to appear in either the Inputs or Processes boxes. A. Start by looking at the Organizing Framework (Figure 6.9) and determine which person factors, if any, are most likely causes to the defined problem. For each cause, explain why this is a cause of the problem. Asking why multiple times is more likely to lead you to root causes of the problem. There may be few or no person factors but be sure to consider them. For example, did attributes of the leaders or other employees contribute to the problems defined in Step 1? B. Follow the same process for the situation fac- tors. For each ask yourself, Why is this a cause? For example, leadership at the executive and other levels might have some effect on the prob- lem you defined. Aside from performance man- agement, did other HR practices contribute to the problem? If you agree, which specific prac- tices and why? By following the process of ask- ing why multiple times you are likely to arrive at a more complete and accurate set of causes. Again, look to the Organizing Framework for this chapter for guidance. C. Now consider the Processes box in the Organiz- ing Framework. Performance management pro- cesses are clearly part of the story, but are any other processes at the individual, group/team, or organizational level that caused your defined problem? For any process you consider, ask yourself, why is this a cause? Again, do this for several iterations to arrive at the root causes. D. To check the accuracy or appropriateness of the causes, be sure to map them onto the defined problem and confirm the link or cause and effect connection. STEP 3: Recommend solutions. Make your recommendations for solving the problem, considering whether you want to resolve it, solve it, or dissolve it (see Section 1.5). Which recommendation is desirable and feasible? (multiple products to the same customer) was some- thing Wells was known for and contributed to its past success. It’s been reported that the reason for eight instead of another number was that CEO Stumpf said it rhymed with “great.” ACTIONS To be fair, numerous examples exist of Wells Fargo management explicitly instructing employees not to engage in such activities, including ethics training and the deployment of risk professionals to identify and correct inappropriate conduct. But this obviously wasn’t enough, and even though employees were expected to report any misdeeds, they didn’t. Incen- tives stayed in place and employees continued to be pressured and even fired if they did not make their sales quotas. Some involved in the scandal argued it isn’t the employees’ fault, they needed a paycheck and this is what their employer required.119 Tim Sloan, who worked at Wells for decades, was inserted as the new CEO and charged with cleaning up the mess, restoring the bank’s reputation, and warding off a potential new $1 billion fine.120 Sloan worked in the role for two years before step- ping down in 2019, presumably for not being able to turn things around.121 Whoever replaces him has the same challenges. Assume you are the new CEO, what would you do? APPLY THE 3-STEP PROBLEM- SOLVING APPROACH TO OB Use the Organizing Framework in Figure 6.9 and the 3-Step Problem-Solving Approach to help identify inputs, processes, and outcomes relative to this case. STEP 1: Define the problem. A. Look first to the Outcome box of the Organizing Framework in Figure 6.9 to help identify the important problem(s) in this case. Remember that a problem is a gap between a desired and current state. State your problem as a gap and be sure to consider problems at all three levels. If more than one desired outcome is not being accomplished, decide which one is most impor- tant and focus on it for steps 2 and 3. B. Cases have key players, and problems are generally viewed from a particular player’s perspective. You need to determine from whose perspective—employee, manager, team, or the organization—you’re defining the problem. As in other cases, whether you choose the individual or organizational level in this case can make a difference. In this case you’re asked to assume the role of the new CEO. Organizational Behavior: A Practical, Problem-Solving Approach 249Performance Management CHAPTER 6 B. Be sure to consider the Organizing Framework— both person and situation factors, as well as processes at different levels. C. Create an action plan for implementing your recom- mendations, and be sure your recommendations map onto the causes and resolve the problem. A. Given the causes identified in Step 2, what are your best recommendations? Use material in the current chapter that best suits the cause. Remember to consider the OB in Action and Applying OB boxes, because these contain insights into what others have done. LEGAL/ETHICAL CHALLENGE What Is Your Current Salary? For eons it’s been standard operating procedure to ask job candidates: “What is your current salary?” The motives for this question are obvious. If your current salary is beyond that budgeted for the job you’re inter- viewing for, then employers often and quickly exclude you from the candidate pool, while those with lower current salaries are assumed to be more likely to accept an offer. This Practice Is Damaging This is changing, however, as legislators in multiple states have outlawed companies from asking about job candidates’ salary histories. Policymakers’ motives are to help eliminate one factor contributing to persistent gen- der and minority compensation disparities. In support, Susie Clark, director of undergraduate studies at the Uni- versity of Indiana’s Kelley School of Business, says: “Gender pay inequality will go on forever if we don’t do something.” Eliminating the question about salary is expected to focus employers’ attention on job qualifica- tions, such as skills, abilities, and experience, and to use market data to set pay. Put differently, the argument by some is employers should not be making offer decisions based on a candidate’s current or past pay. Such Changes Would Be Ineffective Many HR experts and executives disagree and argue banning the box will not have the desired effect of reduc- ing unwarranted pay disparities. They further argue it is reasonable and necessary for employers to learn during the interviewing process if they can reasonably expect to meet a candidate’s pay expectations. Alternatives Already Exist Some companies and HR managers have already devised and implemented alternatives, particularly in instances when considerable and accurate market data exists. This information enables them to confi- dently “price” jobs. Still other employers determine and implement pay ranges which allow for some adjustment based on an individual’s qualifications.122 But neither of these provide insights into candidate expectations. What Would You Do? Assume you are the person responsible for setting the practices at your company, what would you recommend? 1. Would you eliminate such questions from your hiring process? Defend your choice. 2. Describe how you would implement this prac- tice, and explain your rationale. 3. Given your response to #1, assume the law changed in your state and requires you do the opposite. Describe how you would effectively implement that practice. Organizational Behavior: A Practical, Problem-Solving Approach LO 7-1 Explain the benefits of positive organizational behavior. LO 7-2 Apply knowledge of positive emotions to enhance your effectiveness. LO 7-3 Understand how to foster mindfulness. LO 7-4 Describe how psychological capital and signature strengths can improve outcomes at work. LO 7-5 Develop a climate that promotes positive organizational behavior. LO 7-6 Create the conditions for flourishing in your job and career. LO 7-7 Describe the implications of positive organizational behavior for you and managers. After reading this chapter, you should be able to: Figure 7.1 summarizes what you will learn in this chapter. The focus is on positive organizational behavior and how positive inputs and processes influence a host of outcomes across levels of OB. The Organizing Framework for Understanding and Applying OB illustrates how person fac- tors such as mindfulness, psychological capital, and signature strengths form the basis for posi- tive functioning at work. A variety of situation factors also affect the positivity of an organization’s processes. They include organizational culture, organizational climate, organizational values, virtuous leadership, and organizational practices. In turn the inputs and processes shown in the Organizing Framework influence a host of outcomes at the individual, group/team, and organi- zational level. Most importantly, you will learn about a valuable new individual-level outcome labeled flourishing. Flourishing is a contemporary way of describing success or positive func- tioning at work. 7 Positive Organizational Behavior C ai a Im ag e/ Im ag e So ur ce Organizational Behavior: A Practical, Problem-Solving Approach 251Positive Organizational Behavior CHAPTER 7 INPUTS PROCESSES OUTCOMES Person Factors • Emotions • Mindfulness • Psychological capital • Signature strengths Situation Factors • Organizational culture • Organizational climate • Organizational values • Virtuous leadership • Organizational practices Individual Level • Communication • Decision making discretion • Interpersonal conflict Group/Team Level • Communication • Civility • Group Dynamics Organizational Level • Communication Individual Level • Task performance • Work attitudes • Flourishing • Physical health • Citizenship behavior/ counterproductive behavior • Turnover • Creativity Group/Team Level • Group/team performance • Group/team cohesion and conflict Organizational Level • Accounting/financial performance • Organizational performance • Customer satisfaction FIGURE 7.1 Organizing Framework for Understanding and Applying OB SOURCE: ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. Flourishing is at the core of positive organizational behavior. We flourish when our lives contain positive emotions, engagement in our work, positive relationships with others, meaningfulness, and a sense of achievement. It is safe to assume that many people work- ing for and with NASA were flourishing when the Insight Lander successfully landed on Mars in late 2018. The flight was 300 million miles over six months, but the journey was much longer. Numerous employees have been working on this project for decades, includ- ing one member of the NASA team who helped conceive of this project 40 years ago!1 Source: NASA/Bill Ingalls. Organizational Behavior: A Practical, Problem-Solving Approach 252 Winning at Work Boosting Your Performance with Positivity2 What’s Ahead in This Chapter We’re concluding Part One of the book and our dis- cussion of the individual level by introducing you to one of the most exciting and fastest-growing areas of OB, positive organizational behavior (POB). Research suggests you can enhance your life and job satisfaction by following some of the ideas pre- sented in this chapter. We explore the value of posi- tive organizational behavior and expand on several elements to help you foster personal positivity. Posi- tive emotions are one such element (an individual- level process), as are mindfulness (a person input), positive psychological capital (a person input), and organizational climate (a situation factor). Com- bined, these elements create a positive workplace environment and enable people, teams, and organi- zations to flourish. Flourishing is the ultimate individ- ual-level outcome of POB and consists of positive emotions, engagement, constructive relationships, meaningfulness, and achievement. Your performance at work and throughout your career is dependent in large part on influencing others (a primary focus of Chapter 12), and people are attracted to positivity. It is energizing to you, your work, and to others. Be an energizing force and improve your own performance and ability to influence others. Engagement is a key driver of performance at all levels— you, your team, and your organization. Key drivers of engagement are relationships, and positivity is an excellent way to cultivate productive relationships, so you are well served to learn how to use positivity. The rationale behind this approach is best explained in Shawn Anchor’s TED Talk, wherein he describes how happiness leads to success, rather than the other way around. Further, as you have already learned, he explains how emotions are contagious and people like positivity. So, how do you use positivity to improve relationships, engagement, and performance? 1. Smile. It’s that simple and the best place to start. An- chor illustrates how the 10 & 5 tool is used widely within the hotel industry to foster positive interactions with guests. In short, if a guest is within 10 feet make eye contact and smile. If a guest is within five feet make eye contact, smile, and say hello or, how are you? Research in the hospital setting showed doctors and nurses who practice the 10 & 5 rule boosted em- ployee and patient satisfaction. 2. Have Purpose. “Happiness Is working hard at work worth doing.” Influence yourself and others by ensur- ing you have a clear and compelling reason for doing what you’re doing. As you learned in Chapter 5, mean- ingfulness and impact on others are two ways to boost intrinsic motivation. If you don’t know how or why your own work makes an impact, then work with your su- pervisor to better understand. When asking someone else to help or to assist with something, be sure to communicate the purpose and potential impact they and their work will have. 3. Encourage and Praise. Feedback is one form, recogni- tion is another, but what is important is to observe and acknowledge the efforts and outcomes of others. 4. Say Thank You. It is that simple. Be polite and say thank you. 5. Celebrate. Celebrate wins big and small, as well as progress and accomplishments. It is important to ac- knowledge and celebrate progress and accomplish- ments. As you learned about goal setting In Chapter 6, don’t wait until the final outcome is known, but instead congratulate people for their efforts along the way. These small celebrations can help motivate you and others to stay the course and perform better. LWA/Larry Williams/Blend Images Organizational Behavior: A Practical, Problem-Solving Approach 253Positive Organizational Behavior CHAPTER 7 THE BIGGER PICTURE You can benefit at school and at work by understanding positive organizational behavior (positive OB or POB), a purposefully positive approach to managing the behavior of individu- als, groups, and organizations. You’ll see some of these potential benefits when you explore three ways in which positive OB affects a broad set of outcomes contained in the Organizing Framework of OB. 7.1 THE VALUE OF POSITIVITY Positive OB focuses on positive human characteristics that can be measured, developed, and effectively managed for performance improvement.3 It Is an off- shoot of positive psychology and positive organizational scholarship, and like these, focuses on building positive qualities in and positive outcomes for individuals, groups, and organizations. Positive OB contrasts with the historical concentration in these disciplines on sickness and dysfunction in people and organizations.4 The differences are highlighted in the following hypothetical scenarios. Two Scenarios—Which Do You Prefer? Let’s set the stage by describing two scenarios included in an early presentation of positive organizational behavior (POB). First Scenario “Imagine a world in which almost all organizations are typified by greed, selfishness, manipulation, secrecy, and a single-minded focus on winning.”5 Wealth is the ultimate measure of success, feelings of distrust, anxiety, self-absorp- tion, fear, burnout, and abuse are common. Members often experience conflict, treat each other disrespectfully, and break agreements with each other. Employees in this context focus on problem solving, managing uncertainty, overcoming resis- tance, achieving profitability, and figuring out how to beat the competition. Second Scenario Now imagine a world in which appreciation, collaboration, virtu- ousness, vitality, and meaningfulness are the rule. Well-being and thriving are the markers for success among individuals, groups, and organizations alike. Trustwor- thiness, resilience, wisdom, humility, and positive energy are common features. Relationships and interactions are described as compassionate, loyal, honest, respectful, and forgiving. Employees emphasize excellence, positive deviance, extraordinary performance, and positive spirals of flourishing. A Matter of Emphasis Rather than Rejection of Business Realities Many pro- fessionals who first encounter positive organizational behavior assume it simply rejects the realities in the first scenario: the need to solve problems, manage uncertainty, overcome resistance, achieve profitability, and compete successfully. But something else is happening. Positive organizational behavior “does not reject the value and significance of the phenomena in the first worldview. Rather, it emphasizes the phenomena represented in the second.”6 We will show you how identifying and applying the many positive attributes of individuals, groups, and organizations is yet another powerful way of increasing your effec- tiveness professionally and personally. Explain the benefits of positive organizational behavior. LO 7-1 Organizational Behavior: A Practical, Problem-Solving Approach 254 PART 1 Individual Behavior A Framework for Positivity We created Figure 7.2 to help organize, understand, and apply your knowledge of POB. As you recall from the Organizing Framework of OB, person and situation factor inputs influ- ence processes and outcomes across levels. Similarly, in Figure 7.2, positive emotions, mindfulness, psychological capital, and signature strengths are the inputs that help create positivity from person factors, and organizational climate is an input that helps create positivity from situation factors. Positivity from these two sources contribute to positive outcomes across levels of OB. Taking this a step further, positive outcomes are generated through three pro- cesses: the amplifying effect, the buffering effect, and the positivity effect. Let’s discuss each. Amplifying Effect In the amplifying effect, positive practices from one individual result in additional positive practices by others, which spur positivity in others, which generate other positive outcomes. The amplifying effect is often conveyed via positive emotions and social capital (your relationships and network). The idea is positiv- ity fuels more positivity, such that both the receiver and witnesses of kind acts are likely to perform kind acts of their own. This results in reinforcing cycles or upward spirals of positiv- ity. Such behaviors can then transform organizations into more compassionate and harmo- nious places, while improving interpersonal interactions, collaboration, information sharing, and efficiency.7 This perspective on positive emotions is called the broaden-and-build theory, which proposes positive emotions broaden our attention and make us more open to experience. Positive Emotions Mindfulness Positivity fromPerson Factors Positivity from Situation Factors Psychological Capital and Signature Strengths Positive Outcomes across Levels of OB Organizational Culture and Climate FIGURE 7.2 A Framework of Positive OB Organizational Behavior: A Practical, Problem-Solving Approach 255Positive Organizational Behavior CHAPTER 7 These are self-reinforcing—more creates more—resulting in upward spirals of additional positive emotions and actions. For instance, employees who supported and trusted their coworkers received support and trust in return. This may not surprise you; we all hope to reap what we sow. However, the positive spiral is notable. Support and trust resulted in even more support and trust in return.8 One implication for you is if you want some- thing, then give something. If you want more, give more. Do your own experiment and find out. People are more likely to exhibit prosocial behaviors when positive OB is taking place in their work environments. Prosocial behaviors are positive acts performed without the expectation of anything in return.9 A striking and heart-warming exam- ple was provided by Laura Mazur and Jessica Robertson in the 2019 Pittsburgh Mara- thon. The two women who did not know each other were the last runners on the course when they joined hands at about mile 25. They supported each other to the finish line in an exhi- bition of prosocial behavior that went viral. Another racer who finished already and watched Mazur and Robertson said, “it isn’t about finishing first, it’s about helping each and every person change their lives for the better.”10 Buffering Effect To buffer means to reduce or counteract the effects of a negative force. In the buffering effect, positive practices and resources reduce the impact of negative events and stress- ors. When we are confronted with stressors or other- wise undesirable experiences, we utilize various social and personal resources to buffer or cope with them.11 At work, we use social support from helpful coworkers to cope, and/or we may use personal resources such as psychological capital described later in this chapter. Positivity Effect The positivity effect “is the attraction of all living systems toward positive energy and away from negative energy, or toward that which is life giving and away from that which is life depleting.”12 Organizations using positive practices are more likely to create an atmosphere of positive energy, which in turn fuels performance,13 such as financial, work climate (more on this later in the chapter), turnover, patient satisfaction, employee participation, and managerial support.14 The Benefits of Positive OB Extend Beyond Good Performance Positive OB is more than seeing the good side of people, sharing examples of good performance, or treating employees well. Positive OB focuses on creating exceptionally positive inputs, processes, and outcomes at all levels in the Organizing Framework. Exceptionally positive means above and beyond expectations, more than making the grade. This level of achievement is referred to as positive deviance. Gretchen Spreitzer and Kim Cameron from the University of Michigan describe positive deviance Laura Mazur and Jessica Robertson, two strangers, finished the final mile of the Pittsburgh Marathon holding hands. They were the last runners on the course and bonded together to help each other com- plete the race. Helping others, especially when you expect nothing in return, has been shown both to make you feel better and motivate those people to help others. Courtesy of Daniel Heckert Organizational Behavior: A Practical, Problem-Solving Approach 256 PART 1 Individual Behavior Applying OB Because behavior is a product of our emotions, thoughts, beliefs, and experiences, it makes sense that managing these internal responses can improve our performance. Try these suggestions: • Set intentions. Intentions are the end point or goal you want to achieve. They drive your behav- ior.16 If you want to accomplish a specific result on a given day, start your day with a positive intention to do so. Set your intentions around tasks and people that matter to you. • Express gratitude to someone. We are healthier both physically and mentally when we express gratitude. People receiving gratitude report these same positive outcomes.17 Your expression of thanks might be a small gesture, like thanking someone for holding a door open while you pass, or it can also be bigger like starting a college scholarship to assist others in financial need. You can keep a gratitude journal at your bedside and write down one or two things each day that went well or write a thank-you note to someone. The point is to look for positive actions by others and acknowledge them. • Do something helpful or positive for other peo- ple. You do not have to give a tangible gift, but instead offer someone a kind or positive gesture as a smile, a compliment, or words of encourage- ment. Volumes of research show helping others is one of the most fulfilling things you can do. The more you give, the more you’ll get.18 • Become more hopeful. “Hope is believing the future will be better than the present and you have some power to make it happen.”19 The fol- lowing process was found to increase hopefulness for college students: Identify an important goal, identify different ways to achieve the goal, identify obstacles to each pathway and develop a plan for overcoming these roadblocks, and work the plan.20 Taking these steps should give you a sense of hope and control. How to Build Positivity and Your Success The Applying OB box describes ways you can insert positivity into your life, generally, and at work. as  “successful performance that dramatically exceeds the norm in a positive direction.”15 The relative effects of deviance at the individual and organizational levels are illustrated in Figure 7.3. SOURCE: M. Meyer, “The Evolution and Challenges of the Concept of Organizational Virtuousness in Positive Organizational Scholarship,” Journal of Business Ethics, 153, 2018, 245–264. IN Cameron and Caza (2002, p. 35) FIGURE 7.3 A Continuum Illustrating Positive Deviance Negative Deviance Individual: Physiological Psychological Organizational: E�ectiveness E�ciency Quality Ethics Relationships Adaptation Ine�ective Ine cient Error-prone Unethical Harmful Threat-rigidity E�ective E cient Reliable Ethical Helpful Coping Excellent Extraordinary Perfect Benevolent Honoring Flourishing Illness Illness Health Health Olympic Fitness Flow Positive DevianceNormal Organizational Behavior: A Practical, Problem-Solving Approach 257Positive Organizational Behavior CHAPTER 7 TABLE 7.1 Positive OB Practices That Foster Employee Positivity ORGANIZATIONAL PRACTICE DESCRIPTION AND BENEFIT Provide decision- making discretion Allowing employees to make decisions gives them a sense of control and greater opportunities for learning. Share information Information helps employees see the impact of their work and how it fits into the big picture, like the vision and goals of the organization. Minimize incivility Poor treatment, for example bullying and rude behavior, has dramatic negative effects on outcomes in the Organizing Framework and often leads to uncivil behavior by the victims. Organizations need to select employees based on civility and take swift and appropriate action when incivility occurs. Provide feedback Feedback can be motivational and instructional. SOURCE: Spreitzer, Gretchen, and Christine Porath. “Creating Sustainable Performance.” Harvard Business Review, January 2012. https://hbr.org/2012/01/creating-sustainable-performance. Positively Deviant Employees Aren’t Just Happy and Satisfied—They Are Much, Much More Job satisfaction is an important outcome in the Organizing Framework. However, you have also learned job satisfaction is not the strongest or best predictor of job performance. Positive OB provides you with additional useful insights beyond job satisfaction and other attitudes that predict performance. For instance, a study published in the Harvard Business Review showed employees who flourish (a key positive outcome of positive OB shown in Figure 7.2 and discussed later) reported: • 16 percent higher overall performance. • 125 percent less burnout. • 32 percent more commitment to their employers. • 46 percent more job satisfaction. • Fewer sick days.22 These outcomes are compelling. Organizations can foster positive deviance in employees in a number of ways, such as those described in Table 7.1.23 Doing Well and Doing Good Positive businesses do well, and they do good. They do well by being profitable and performing at a high level, but they also do good by making the well-being of their employees and other stakeholders (suppliers, customers, and communities) a priority. • Focus on the positive side of life. Negative thoughts and worry are prime enemies of staying focused in the present moment. We often worry about things we can’t control, including events in the past. Don’t worry about the past or what you can’t control, instead try to stay focused on what is happening in the present moment. • Be aware of negative thoughts and beliefs. The brain has a built-in negativity bias. This allows negative events to have more impact on us than positive ones, and we often think bad infor- mation about someone is more important than positive information.21 If you find yourself focus- ing on negativity, try to reframe your thoughts in a positive direction. For example, rather than worrying about your level of performance on an exam, tell yourself you are prepared and will do just fine. Organizational Behavior: A Practical, Problem-Solving Approach 258 PART 1 Individual Behavior This positive approach to business is now mainstream. For example, Fortune magazine has published a list of companies that are not altruistic—doing good for goodness’s sake— but that are nevertheless solving major problems profitably. These meet three criteria: 1. Measurable Social Impact. Fortune assessed the magnitude and lasting nature of the company’s impact on a notable societal problem. 2. Business Results. How does the company benefit? Shareholder return factors heavily. It isn’t enough to receive good PR and reputational benefits. 3. Degree of Innovation. It isn’t enough to do good and do so profitably, it also is impor- tant to do so creatively, differently from others.24 Good to Employees = Good to Shareholders Positive organizations empower, support, and develop employees not just because leaders believe doing so is valuable in and of itself, but because it helps meet shareholder expectations. Kip Tindell, founder of the Container Store, reflects this belief in his philosophy about the value of employees: One great employee is equal to three good ones. If you really believe that, a lot of things happen. We try to pay 50 to 100 percent above industry average. That’s good for the employee, that’s good for the customer, but it’s good for the company too, because you get three times the productivity at only two times the labor cost.25 Doing good can enhance well-being, even in the absence of a monetary reward, and it can happen at all levels in the Organizing Framework. • Individual Level Joe Ryan started his own company, and rather than the common label of CEO he instead chose CFE—chief fun engineer. He thought this label aligned better with the nature of the company—party-games—and his actual respon- sibilities. It also is a great conversation tool, enabling him to explain and promote his business to others.26 • Team/Unit Level CSAA Insurance Group from California has a unique proposi- tion for employees. If you work for us you’ll spend multiple weekends per year vol- unteering in some of the nation’s best national parks. Hundreds of the company’s employees travel in teams to help with beautification and cleanup projects. For this they get Friday as a paid day off and spend the weekend camping and helping. This aligns with the company mantra—“taking care of business means taking care of each other.” Volunteering is included in leaders’ performance expectations, and in 2018 the goal was 80 percent employee participation in volunteering. They achieved 99 percent!27 • Organizational Level Walmart has made reducing waste a major focus, so much so it has diverted approximately 78 percent of the waste it produces away from land- fills.28 It has done this via recycling, packaging design and materials, and food dis- posal, and is influencing its suppliers to do the same. The company’s philosophy is that any waste is bad, and it is trying to close the loop by making products circular, meaning the energy, packaging, and products themselves are captured and put back into the system.29 Give in Order to Get Giving financially doesn’t necessarily detract from outcomes. Researchers studied the links between the amount of discounted care and the quality of all care provided by a number of hospitals in Southern California. Discounted care is given to those who cannot pay or can pay only a reduced rate; sometimes it amounts to a financial loss for the hospital. The researchers found hospitals that provided more discounted care also reported lower incidences of pneumonia and heart failure, as well as better surgical outcomes and fewer readmissions.30 This seems to suggest altruism and high performance are not mutually exclusive. Notions of positivity are catching on with Wall Street too, as illustrated in the OB in Action box. Organizational Behavior: A Practical, Problem-Solving Approach 259Positive Organizational Behavior CHAPTER 7 Socially responsible investing is nothing new, it’s decades-old in fact. However, it’s finally lost its stigma and is now recognized as a viable and profit- able approach to investing. Financial instruments with a green and responsible focus are referred to as environmental, social, and governance (ESG). Ample evidence now exists showing that compa- nies can be very profitable by considering the envi- ronment, communities, and employees in their decisions.31 Bank of America and Merrill Lynch found that approximately 20% of all investors, and 50% of those with a longer time horizon, consider ESG issues in their decisions, demonstrating there is suf- ficient demand for such considerations. In support of this focus, McKinsey studied mid-large compa- nies between 2001 in 2014 who manage with a long-term approach, which means they consistently invest profits back into their business through peo- ple and R&D. They found these companies per- formed substantially better than their peer group: 47% greater revenue growth and 36% greater profit. As one investor put it, “investments chosen with social concerns in mind proved ‘more resilient and less risky.’ ”32 ESG investing is no longer just for do-gooders and tree huggers. Some titans of the investment world have gotten behind it, including billionaire investor Paul Tudor Jones II. In 2012 he started a foundation, Just Capital, to develop a series of cor- porate performance measures including things other than dollars and cents, like how workers are treated and job creation. In the beginning, Just Capital produced only a list, but then Goldman Sachs used these metrics to create a new exchange traded fund as part of its social impact efforts. The fund includes a selection of Russell 1000 companies and tracks the top per- formers in each industry based on Just Capitals’ measures, which now include metrics related to workers, customers, products, environment, jobs, communities, and management. In its first year the top performers were only tech companies: Intel, Texas Instruments, NVidia, Microsoft, and IBM. Just Capital says the companies in the fund out- performed their peer group impressively and in socially conscious ways. They paid 71 percent less in fines for consumer complaints and violations, 94 percent less in equal employment opportunity commission fines, and produced 45 percent lower greenhouse gases. And to top it off, they created 20 percent more jobs in their peer group.33 YOUR THOUGHTS? 1. What are the pros and cons of ESG investing? 2. Assume you are a money manager, explain why you would or would not consider ESG factors in your investing? Be sure to include at least two reasons for each argument. 3. Do you think this approach will continue to be effective over time? Explain. How Do You Spell Green? ESG. OB in Action Balancing the needs of multiple stakeholders—employees, customers, communities, and investors—is a major challenge. Despite what particular leaders may say, most give clear priority to one, often at the expense of the others. But some truly attempt to satisfy all stakeholders. A glowing example is Salesforce, which ranked #2 on Fortune’s Best Places to Work list in 2019.34 This company continues to deliver impressive results for many of its stakeholders. For employees, it spent $3 million to help establish pay equity, and it provides unlimited vacation time and paid sabbaticals among many other attrac- tive benefits. It invests in communities by providing each employee seven days per year to devote to a cause they choose, and it matches up to $5,000 in charitable giving.35 Whether these practices have actually attracted investors isn’t exactly clear, but what is clear is it hasn’t scared them away. The company’s stock is a long-time favorite among tech investors. However, positive approaches to doing business aren’t without difficulties. The follow- ing Problem-Solving Application describes challenges Whole Foods has had maintaining its doing well by doing good philosophy since being acquired by Amazon in 2017. Organizational Behavior: A Practical, Problem-Solving Approach 260 PART 1 Individual Behavior Whole Foods vs. Whole Amazon Investigative journalist Michael Blanding put it best, “Amazon’s acquisition of Whole Foods . . . was the corporate equivalent of mixing tap water with organic extra virgin olive oil. You’d be hard-pressed to find two companies with more different value propositions.”36 Stories quickly emerged about Whole Foods customers unhappy about the changes at their favorite organic retailer, and they weren’t the only ones complaining. Similar negative stories emerged from employees regarding the new performance-driven expectations imposed by Amazon. Immediate Impact After the acquisition, Amazon’s presence was immediately felt. In addition to plastering its logo everywhere In Whole Foods stores, it also used its strengths in data and data analysis to determine appropriate product mixes and bring efficiencies to many processes. After all, Amazon is known for its efficiencies, low costs, and low prices. Clash This is a stark contrast to Whole Foods’ highly empowered approach to doing business, wherein individual stores and their employees had autonomy regarding decisions about product selection, inventory, and how best to serve customers. This employee-centric focus is what earned the company a spot-on Fortune’s Best Places to Work list for 20 consecutive years, and the reason its customers enjoyed personalized intensive, hands-on service. Although this decentralized, high-touch approach had real benefits, it also had considerable inefficiencies that Amazon was keen to address. Amazon and its employees utilized data, rigor- ous analysis and controls, and demanding perfor- mance management practices. In the eyes of Amazon, customers were faceless digital profiles of purchasing history and preferences. This environ- ment was a good fit for some employees but incred- ibly stressful and negative for others. Evidence for this was Whole Foods dropping from Fortune’s list in 2018 (it didn’t make the list in 2019 either). Unrealized Potential? These differences have the potential to undermine the hopes and goals of the merger, which were to bring Amazon’s efficiencies and operating prowess to Whole Foods’ unique approach and loyal customers, enabling it to scale up and make an even larger impact in the market. Leaders at Amazon, and to a lesser extent at Whole Foods, now have decisions to make. Problems exist, and the success of the marriage depends on solving them. Assume you’re a consultant, what would you recommend to Amazon’s leadership? Problem-Solving Application Apply the 3-Step Problem-Solving Approach Step 1: Define the problem as described in the case. Step 2: Identify the causes of the problem. Which inputs and processes from the Organizing Frame- work are evident? Step 3: Make recommendations to Amazon’s leadership regarding how to realize the potential of the merger. Organizational Behavior: A Practical, Problem-Solving Approach 261Positive Organizational Behavior CHAPTER 7 THE BIGGER PICTURE OB recognizes emotions as an important and ever-present individual-level process. In the section ahead you can see whether your positive emotional experience matches our list of the 10 most common positive emotions. Positivity is more than feeling happiness and paint- ing a smile on your face. You’ll also find tips on how to foster positive emotions and how to apply them at school, work, and home. 7.2 THE POWER OF POSITIVE EMOTIONS Referring to Figure 7.2, note that positive emotions help drive positivity from person fac- tors. Recall in Chapter 3 we introduced emotions as relatively brief psychological and physiological reactions having a particular target, such as a person (an unethical, bullying boss), a situation (a night out with your closest friends), or an event (scoring well on an exam). Our discussion then focused on negative emotions and how to manage their expression. We now turn to positive emotions. Like their negative cousins, positive emotions are relatively f lexible individual differences and are important processes in the Organizing Framework. You may think of emotions in terms of positive or negative; however, there is much more to the story. Beyond Happy vs. Sad Positive and negative emotions are not polar opposites. The world of emotions is not happy versus sad. Negative emotions spur you to act in quite narrow or specific ways. Fear may motivate you to flee and anger may motivate you to fight. Positive emotions, in con- trast, tend to broaden your mind-set and allow you to consider new, different, and possibly better alternatives when trying to solve a problem. Positive Emotions as Resources If you think of emotions in this way, you can see negative emotions are limiting and positive emotions are resources that fuel individual, group, and organizational flourishing. (Flourishing is discussed in detail in the last section of this chapter.) Psychology professor Barbara Fredrickson explains positive emotions this way: To get a feel for the ways positive emotions can build life resources, envision for a moment something that made you feel joyful, playful, or intensely alive—when you wanted to smile, cheer, or jump up and dance around. Maybe it was . . . sharing a meal with lots of laughter with a friend you haven’t seen in ages . . . maybe it was dancing with the group of friends as your favorite band played. Whatever comes to mind for you, take a moment to relive the experience in your mind, letting joy rekin- dle. Consider how you felt and what you felt like doing. What we’ve learned about Apply knowledge of positive emotions to enhance your effectiveness. LO 7-2 Organizational Behavior: A Practical, Problem-Solving Approach 262 PART 1 Individual Behavior joyful experiences like these is that the playful urges they carry build resources, and in times of trouble, these gains in resources can help you in important ways— strengthen relationships, boost performance at school and work, and improve your health.37 The bottom line is positive emotions help you build resources in the form of: • Social relationships that are supportive, fulfilling, and lasting. • Psychological well-being that leads to personal growth, meaningful goals, and self- acceptance.38 • Physical well-being in the form of lower stress and a healthy heart. These resources support your efforts and effectiveness in all arenas of life—school, work, and family. Benefits of Positive Emotions Positive emotions are processes influencing many outcomes in the Organizing Framework, and they have desirable effects on: • Organizational commitment • Creativity • Decision making • Intentions to quit • Performance39 • Stress40 Table 7.2 lists the 10 most common positive emotions from the most to the least frequently experienced. Love is a special case, however. Despite being at the bottom of the list, it is the most frequently experienced positive emotion. After reading about each of the other positive emotions, you’ll understand why it was inserted last in the table. Positive Emotions Are Contagious It has been shown time and again, if you help someone in a meaningful or even a small way, that person is more likely to help others. As Barbara Fredrickson says, “Beyond the dance of positivity between you and the person you helped, those who witness your good deed may well feel inspired, their hearts uplifted and elevated.”41 This means not only do you reap the benefits of helping somebody else, but that person also benefits, and so does the person he or she helps, and so on. This self- reinforcing and perpetuating aspect of positive emotions, and positivity more gener- ally, is what leads to upward spirals of positivity, in which your positive behaviors, feelings, and attitudes generate the same in others in a continually reinforcing process. Positivity spirals may also work in the other direction. In diverse customer service jobs—such as financial consulting, medical care, retail banking, hair care, and grocery stores—customers who showed delight with the service generated positive emotions in the provider and a subsequent increase in that person’s organizational commitment and job satisfaction. We’re often pleased when we help somebody and they in turn show appreciation. However, better still, the benefits extend to future customers via improved service behaviors.42 This illustrates the lasting or enduring effects of positivity. This contagion occurs in teams too. Positive emotions spread to create team-level emotions that help members new and old feel safe, welcome, and truly part of the team. These benefits lead to improved team performance.43 Organizational Behavior: A Practical, Problem-Solving Approach 263Positive Organizational Behavior CHAPTER 7 TABLE 7.2 Description of the 10 Most Frequent Positive Emotions POSITIVE EMOTION DESCRIPTION Joy Visualize this: Your surroundings are safe and familiar. Things are going your way, even better than you expected. Choice requires little effort on your part. Colors are more vivid. There’s a spring in your step and your face lights up with a smile and an inner glow. Gratitude Imagine you’ve realized someone has gone out of his or her way to do something different. Your mentor gently steers your career in the right direction, or your physician meets you at the office after hours or on the weekend. Gratitude opens your heart and generates an urge for you to give back, to do something good in return, either for the person who helped you or for someone else. Serenity Like joy, serenity includes safe and familiar surroundings and requires little effort on your part. But unlike joy, serenity is low key. It comes when you go on a long, leisurely ride or walk, engage in fulfilling conversation, or get wrapped up in a good book while relaxing on vacation. Interest Something novel or different draws your attention, filling you with a sense of possibility or mystery. Unlike the case for joy and serenity, the circumstances call for effort on your part. You’re pulled to immerse yourself in what you’re discovering. Hope Hope is different from most other positive emotions you experience when you’re safe and/or satisfied. You are hopeful when something isn’t going your way, but you believe that it can. Pride You know pride’s evil cousins—shame and guilt—and the painful feelings that overcome you when you are to blame for something. Pride is the opposite; you’re responsible for something good, something for which you can take credit or that made a positive difference to someone else. (However, unchecked pride is hubris.) Amusement Sometimes something unexpected happens that makes you laugh. Amusement is social; it most often occurs in the company of and as a result of others. Heartfelt laughter often accompanies amusement. Inspiration When you’re inspired you are moved to do something extraordinary, something you might otherwise feel is beyond your abilities. This same feeling rivets your attention, warms your heart, and draws you in. Inspiration doesn’t just feel good; it makes you want to act, to improve, or even to be the best you can be. Awe Closely related to inspiration is awe which happens on a grand scale. You feel overwhelmed, small, and humble. Awe makes you stop in your tracks. Sometimes people are awed by the beauty of nature (Grand Canyon or Niagara Falls). Love Love is not a single positive emotion but incorporates many of the others. When these good feelings stir our hearts within a safe, often close relationship, we call it love. Early stages of romantic relationships involve intense interest in everything and anything the person says. You share amusements and laughter together and as the relationship builds great joy, you begin to share your hopes and dreams for the future together. When the relationship becomes more solid, you experience serenity and can be proud of your partner’s achieve- ments, as if they are your own. SOURCE: Fredrickson, Barbara L. Positivity. New York: Three Rivers Press, 2009. Organizational Behavior: A Practical, Problem-Solving Approach 264 PART 1 Individual Behavior We often think of service encounters from the customer’s perspective, but research shows positive customers help generate positive feelings and behaviors in employees. These positive effects can “spiral” beyond a particular encounter to positively affect the employee’s other behaviors. Peathegee Inc/Blend Images How Much Positivity Is Enough? Don’t overlook the valuable role of negative emotions—life is not all sunshine and roses. Negative emotions can motivate you to try harder and improve, and they can also protect you against harmful situations and communicate to others your need for help or support.44 Forcing yourself to feel or act as if everything is great all the time is absurd and would certainly undermine your effectiveness, health, and overall well-being. Even the most posi- tive person feels the intense emotional pain associated with experiences of loss and betrayal, and positive people get angry when they or others are treated unfairly. So how much positivity is enough? Multiple Positives for Every Negative Some researchers have argued for specific optimal ratios of positive to negative which others have disputed. Yet, all agree that posi- tive and negative experiences are not equivalent. You cannot remedy a negative experience by simply adding a positive one—it’s not one for one. Instead, to flourish and experience the benefits of positive OB discussed in this chap- ter, you must have three, five, or more positive experiences for every negative.45 You don’t need to focus on which positive emotions you feel at a particular time, but be sure you have multiple positives for every negative one. Why? Because it has been well-established that our brains respond differently to posi- tive and negative experiences. • Negative experiences activate a survival orientation and lead us to be more respon- sive to negative information. Our brains actually look harder for negative than for positive information during daily activities.46 This might help explain why managers tend to give more negative than positive feedback to employees. • Positive experiences activate a supportive orientation and lead us to be more respon- sive to positive information. This is part of the reason managers, and people more generally, seem receptive to new ideas when in a good mood. The following Apply- ing OB box describes how to boost positivity by injecting some fun. Organizational Behavior: A Practical, Problem-Solving Approach 265Positive Organizational Behavior CHAPTER 7 Applying OB Of course, everyone likes to have fun, including at work. Thanks to researchers in the 2000s we have sci- entific support for its benefits in the workplace. Fun in the workplace is defined as: “characteristics or features of the work environment of a social, playful, and humorous nature, which have the potential to trigger positive feelings of enjoyment, amusement, and lighthearted pleasure.”47 Situation Factor When viewed this way fun is a situation factor, which means it is an input in the Organizing Framework and is something you and your coworkers can control. Some companies are well known for cultivating fun as an important value or part of their culture. For instance, Marriott famously says, “work hard, yet keep it fun.” Google leaders have been known to espouse “fun comes from everywhere,”48 and Southwest Airlines Is well known for its “fun- LUVing” culture and encourages employees to be “creative and add a touch of levity and laughter whenever possible.”49 Benefits Fun for fun’s sake, is fine, but purposefully building a fun work environment has many benefits, such as helping coworkers make new connections while learning something new because of the interactions. Employees also have been found to support one another, be more creative, resilient, and optimistic, all due to fun.50 How to Build It Several factors can help cultivate a fun work environment, including: • Supportive Practices. Be a fun promoter, not a damper. Manager encouragement, participation, and other supportive behaviors help. • Employee autonomy. Let them play! • Events. Activities, stimulating job responsibilities, and socializing are ways of building fun. To help ensure your efforts have the desired results, consider the type of activity, those involved In the activity, and make it voluntary. You can’t force fun; you can only present the opportunity. Research has found employees generally appre- ciate mainstream activities aligning with their interests (celebrations for birthdays or achieve- ments) rather than something wacky or with narrow appeal.51 Boost Positivity with Fun This discussion reveals why managers should focus on the good things employees are doing, and why all of us should focus on the positive qualities of coworkers, classmates, business partners, friends, and significant others. You’re likely thinking, “sounds good, but how?” Strategies to Increase Your Positivity The following activities can help increase positive experiences and decrease your negative ones.52 Create high-quality connections. Any social interaction, whether with family, coworkers, classmates, or the person ahead of you in line, is a chance to create a high-quality connection. These connections are energizing and enhance your positivity. To trans- form ordinary interactions into high-quality connections, try the following tips: 1. Make someone the only person in the room. Engage the other person by being present, attentive, and affirming. Act as though he or she is the only person in the room. 2. Support. Encourage the person and help him or her achieve a goal or attain success. 3. Give trust. Believe you can depend on this person to meet your expectations, and let it show. 4. Goof off, play, have fun! Have no goals or intentions other than to goof off with others. Organizational Behavior: A Practical, Problem-Solving Approach 266 PART 1 Individual Behavior Cultivate kindness. Set a goal of performing five new acts of kindness in a single day. Aim for actions that make a difference and come at no cost to you. Assess what those around you might need most and make a plan, but execute your plan so acts of kindness occur on the same day to further enhance the impact. Develop distractions. One of the best ways to break from negativity is to distract your- self. Brainstorm and think of ways—old and new—to distract yourself from negative thoughts. Be sure to think of things you can do at school, at home, or at work. Make two lists: healthy distractions and unhealthy distractions. Healthy distractions can be going for a run, taking a bike ride, or playing your favorite sport. Unhealthy dis- tractions might be drinking, eating junk food, watching TV, or playing video games. For each unhealthy distraction, challenge yourself to add another healthy distrac- tion to your list. Negativity can creep in anywhere and at any time, so keep your lists of distractions handy and practical. For example, Sam Kendricks may not be household name, but he is a renowned pole vault champion. He won bronze in the 2016 Olympics, five consecutive national titles, a world championship, and was undefeated in meets in 2017. Obviously, he is a world class talent but what is equally notable is his determination to spread posi- tivity by making friends with and helping support his fellow competitors. The pole vault is one of the loneliest of sports—just you, the pole, and bar—and you either win or lose. Yet during competitions Kendricks gives pointers, coaches, and cheers for his competitors. His positivity was captured in an interview: “They probably thought I seemed a little strange. I really pushed on these other guys that I wanted to be their friend and help them. . . . I had an undefeated season last year, but what good is vic- tory if you can’t share it?”53 Dispute negative self-talk and thoughts. Write on 3×5-inch cards your most frequent negative thoughts or emotions about yourself, a relationship, or a situation at school, work, or home. Then, in a private place where no one can hear you, read the cards aloud one at a time. After reading each, immediately dispute or counter it. Don’t stop to think but beat it down and disprove it with something positive about yourself, Sam Kendricks treats the pole vault like a team sport. He helps and cheers on his competitors in the middle of meets. He believes friendship and positivity benefit his performance and that of his com- petitors, and that’s how he likes it. David Emm/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 267Positive Organizational Behavior CHAPTER 7 the situation, or the facts. Be sure to do this with enthusiasm, to build your convic- tion. Practice. Your goal is to learn to dispute negative thoughts as quickly as they enter your mind. Platitudes = Fake = Bad Outcomes Uttering positive words or forcing a smile isn’t enough. Humans are excellent detectors of insincerity.54 If your positivity is not heart- felt and genuine, you will not reap any of the benefits of improved performance, relation- ships, and health we’ve discussed. Disingenuous attempts at positivity may even do harm, because your lack of authenticity may erode others’ trust in you and reduce your influence and credibility with them. Your Level of Positivity To make this discussion come to life for you, find out the relative frequency of your positive to negative emotions. This knowledge can help you understand many things about yourself, such as how likely you are to reap the benefits of positive emotions and positive OB. Emotions are short-lived, and any measure of your emotions captures your feelings about a specific event, person, or dimension of your life at only a particular point in time. We encourage you to take Self-Assessment 7.1 for the past day of your life, which is intended to capture your positivity more generally. Then take it again, focusing on school or work as your target. Now calculate your ratio of positive to negative emotions for work or school, and compare it to your ratio for life more generally. This will provide knowledge of your positivity in various arenas of life and help you better understand this important personal resource. Learn Your Positivity Ratio Please be prepared to answer these questions if your instructor has assigned Self- Assessment 7.1 in Connect. 1. What is your reaction to the results? 2. Considering the individual differences (IDs) we discussed in Chapter 3, which ones do you think are contributing to your ratio? 3. Do others see you as more or less positive than your ratio suggests? Why? 4. If you conduct this self-assessment for two different dimensions of your life (school and work), to what do you attribute the differences in the ratios if any? 5. Describe three things you can do to improve your positivity ratio for school. SOURCE: Barbara Fredrickson, Positivity: Groundbreaking Research Reveals How to Embrace the Hidden Strength of Posi- tive Emotions, Overcome Negativity, and Thrive, Crown Publishers, 2009. SELF-ASSESSMENT 7.1 Next, we’ll explore an approach to positivity and well-being that has received enor- mous attention, and practice, in the past several years. Organizational Behavior: A Practical, Problem-Solving Approach 268 PART 1 Individual Behavior Mindfulness is “the awareness that emerges through paying attention on purpose, in the present moment, and nonjudgmentally to the unfolding of experience moment by moment.”55 We can be mindful of our inner world (our feelings and thoughts), and our outer world, including the feelings, thoughts, and interactions of others. Everyone has the ability to be mindful, but it takes effort. The default setting in our minds is to judge or evaluate our current internal and external situation,56 and it is this mental chatter that detracts from the inner quiet we need to stay focused on and aware of what is going on around us. Understand how to foster mindfulness. LO 7-3 THE BIGGER PICTURE You may be more aware of mindfulness by its absence, such as when you’re saying some- thing you feel is important, yet the person you’re speaking to isn’t paying attention. In this section, you’ll find you can improve your focus and attention through practice, and how doing so can be tremendously beneficial to you, those around you, and your employer. 7.3 FOSTERING MINDFULNESS Figure 7.2 shows mindfulness is another person factor that creates positivity in work environments, along with a growing number of desirable outcomes for individuals, teams, and organizations. This is why we study it in OB and explore some of the details next. Organizational Behavior: A Practical, Problem-Solving Approach 269Positive Organizational Behavior CHAPTER 7 Big Business The interest in mindfulness, and meditation more generally, at work has grown tremen- dously in recent years. Mindfulness is now mainstream and widely practiced by employees and in workplaces everywhere. A study by the Centers for Disease Control and Prevention revealed a two- to three-fold increase in the number of people practicing some sort of mindfulness since 2012.57 A survey of 163 employers of different sizes and industries found that greater than 52 percent planned to provide mindfulness classes within the next year, and another 25 percent planned to do so within the next two years.58 Many companies now sponsor mindfulness training for employees (Google, Nike, Fidelity) and others have cashed in by providing apps and other forms of mindfulness training. Insight Timer, for instance, claims it is the world’s most used meditation app with over 6 million users59 and more than 50,000 hours of meditation per day. This is one small part of the more than $1 billion mindfulness industry.60 A competitor, Headspace, antici- pates doubling its corporate clients in just one year.61 Like many other things at work, it helps if senior leaders buy in and are believers in mindfulness. The following OB in Action box describes how the former CEO of Aetna brought mindfulness to his employees, along with the experiences of other companies. CEO Is a Believer Mark Bertolini, the former CEO of Aetna Health (which merged with CVS), credits mindfulness with changing his life after a horrible skiing accident before becoming CEO. He used it to help manage the pain and recover from his injuries, and once becoming CEO, he was determined that employees should reap similar benefits. But it wasn’t easy. In an interview with The New York Times he recalls the CFO at the time saying, “ ‘We’re a profit- making entity. This isn’t about compassion and collaboration.’ I said, ‘Well, I actually think it is. And I’m in charge, so we’re going to do it.’ ”62 Bertolini also credits mindfulness with boosting the minimum wage at the company. The company’s yoga instructor heard numerous complaints regard- ing pay from employees during the training sessions; these were then shared with Bertolini. He was deeply troubled by the dire financial situations of many employees, which he then acted on by increas- ing the minimum wage at the company from $12 to $16 per hour.63 Although mindfulness did not directly cause the change, the classes provided the opportu- nity for him to learn about employees’ plight and open his mind to listen and thus sparked his com- passion to act. Scientists Proved It to Themselves Scientists at biotech company Genentech felt happier and more content at both work and home after using a mindfulness app. Like true scientists, they conducted experiments and used the data to convince HR to offer the Headspace app to all of the company’s 14,000 employees. It seems to work, as 2,500 of them now use the app at least four times per week. Nancy Vitale, senior vice president of human resources at Genentech, said: “Headspace is giving us an opportunity to focus on the health and well- being of our employees. . . . Our mission is bringing breakthrough medicines to patients, and it’s critical to foster an environment where employees feel they can give their best.” Biotech, Insurance, and Industrials . . . They’re All Mindful. What About You? OB in Action Mark Bertolini attributes much of his recovery from a severe skiing accident to mindfulness. He then promoted it throughout the company when CEO at Aetna Health. Cindy Ord/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 270 PART 1 Individual Behavior Benefits of Mindfulness Although mindfulness was originally used as a means for guarding against negative work- related outcomes, such as stress and burnout, now it is promoted for improving a wide range of cognitive, emotional, behavioral, and physical outcomes.65 The American Psychological Association has compiled several scientifically sup- ported mindfulness benefits: 1. Less rumination. If you dwell on past or current challenges, you are likely ruminating. Mindfulness can help reduce this often destructive emotional vicious circle. 2. Reduced stress. Stress can have many undesirable effects, which will be explored in more detail in Chapter 16. But there are clear benefits for mindfulness. 3. Improved memory. Many forms of meditation have been shown to improve retention and working memory, beyond the benefits of reducing stress. 4. Better focus. Mindfulness training has been shown to improve focus and decision making. 5. Self-awareness. Mindfulness fosters self-observation and introspection. 6. Greater interpersonal effectiveness and satisfaction. It is likely the other benefits noted contribute to better relationships, but mindfulness helps reduce conflict and lessen the negative effects when it occurs.66 Industrial Well-Being Industrial giant GE also uses mindfulness training as a part of its employee health and well-being efforts. The company provides one month free and then 60 percent discounts for employees who want to continue. So far feedback has been very positive, according to Global Wellness Leader Adam Malinkoski, and more than 5,000 employees have tried it.64 YOUR THOUGHTS? 1. If your employer provided mindfulness training would you participate? Why or why not? 2. If you were CEO would you be willing to give mindfulness training a try? Why or why not? 3. Have you meditated or done yoga? If yes, what are the benefits you experienced? If you haven’t personally, what have others you know told you about their experience? Each of these companies has created a climate that fosters positive OB. Do you agree that industry leaders have a larger responsibility to make the world a better place? Top Left: Michael Lucia/The Oakland Tribune/ZUMA Press, Inc./Alamy Stock Photo; Top Right: Kristoffer Tripplaar/ Alamy Stock Photo; Bottom Left: Bjorn Bakstad/Shutterstock; Bottom Right: Asif Islam/Shutterstock Organizational Behavior: A Practical, Problem-Solving Approach 271Positive Organizational Behavior CHAPTER 7 Practicing Mindfulness The goal of practicing mindfulness is to help you become more calm-and-collected in all circumstances. An influential book, The Leader’s Way, explains: “When the mind is dis- turbed by anger, jealousy, hate, impatience, fear, lack of self-confidence, or negative emo- tions about things that happened in the past, it is wasting valuable time that instead should be used for constructive thinking.”68 Practicing mindfulness helps you focus your mind on productive activities while constraining counterproductive thinking and mind wandering. The good news is you can learn mindfulness by practicing a variety of simple medita- tion techniques on a regular basis. Although there are many good books, articles, and help- ful apps,69 we review two approaches that are easily learned: a breathing meditation and a walking meditation. Research shows practicing short meditative techniques reduces stress and negative emotions and increases emotional regulation, task performance, and memory.70 Give the techniques a try and note how you feel! Breathing Meditation Breathing meditations are easy and can be done almost any- where. Focusing on breath reminds us of the here and now because it brings us back to a fundamental and vital function of life. This technique requires nothing more than tuning in to the physical sensations associated with breathing in and out. Two experts recommend the following simple approach for getting started: • Place your hand on your stomach a couple of inches beneath the upside-down V at the center of your rib cage. Look down, breathe normally, and watch your hand. You’ll probably see it move only a little bit, and more-or-less up and down. Your abdomen should expand when you inhale and contract on the exhale. • Leaving your hand in place, now breathe in such a way that your hand moves out and back, perpendicular to your chest. Try to breathe into your hand with real oomph, so that it travels back and forth half an inch or more with each breadth.71 What Is My Level of Mindfulness? Please be prepared to answer these questions if your instructor has assigned Self- Assessment 7.2 in Connect. 1. What questions identified your greatest inhibitors? (Select the three items with the lowest scores.) 2. What is the cause of these inhibitors? 3. Examine the techniques listed in the next section and decide which one might be best suited for your needs. Start using the technique on a daily basis. SELF-ASSESSMENT 7.2 Evidence is accumulating as to the many benefits of mindfulness at work, especially in the areas of performance, interpersonal relationships, and overall well-being. Mindfulness interventions have been shown to increase job performance, organizational citizenship behaviors (OCBs from Chapter 2), and safety behaviors. It’s also been shown to improve communications, leadership, and teamwork, while reducing conflict.67 It’s no wonder so many organizations have explored the benefits of mindfulness. But what about you? Would you like to improve your interpersonal interactions and experience less stress? If yes, then you’ll gain insight about your current level of mindfulness by com- pleting Self-Assessment 7.2. Then, in the next section we will walk you through a mindful- ness exercise with the hope you’ll get some sense of the benefits for your personally. But first, be sure to take the assessment and answer the questions. Organizational Behavior: A Practical, Problem-Solving Approach 272 PART 1 Individual Behavior Start by trying these two steps for about 10 to 20 breaths. Once you are comfortable with this form of diaphragm breathing, you can take your practice to the next level with these additional instructions: • Sit comfortably in a chair, feet firmly on the ground and your back relatively erect. Feel like you are a “proud mountain” of stability. Close your eyes and take a deep inhale that fills your belly and lungs. Now exhale, noticing how your belly contracts. Do this twice. • Add counting to four or five as you both inhale and exhale, to ensure you are taking deep breaths. Try doing this for five minutes twice a day. You can extend the length of time you practice breathing meditations as you become more comfortable with the technique. Your mind is likely to wander during these exercises. You will also notice sounds around you. That’s normal. Acknowledge the thoughts and sounds and return your focus to your breath. Don’t try to chase the thoughts away or give the sounds much attention. Just recognize them and let them pass. The thoughts will move away like a white cloud being blown by the wind in a blue sky. Walking Meditation This can be done any time you are walking, and no one will know you are doing it. Start this technique by forming an intention or desired goal. Doing this sends a signal to the mind that guides its attentiveness and awareness during the meditative practice.72 A sample intention is, “I will focus on the act of walking while ignoring other sounds and thoughts.” Begin walking and keep your intention in mind. Concentrate on placing one foot after the other. Feel the rhythmic nature of your steps. Focus on how it feels to lift and place your feet on the surface. Train your mind to be aware of your footsteps. Notice the speed at which you walk and the pressure being felt by your feet. Consider changing the length of your stride and notice how it feels. If your mind starts to wander or you begin thinking about something you have to do, just recognize the thought and then drop it. Return your attention and awareness to your inten- tion, which is the act of walking. You will be amazed at what you can observe.73 Try this for five minutes every day for three weeks and observe the effects. A variation on this technique is to focus your intention on sound or smell. For example, “I will focus on all sounds during my walk,” and “I will focus on all smells during my walk.” If you use an intention aimed at sound, begin walk- ing and concentrate on what you hear. Listen for all types of sounds like footsteps, bird- song, mechanical objects operating, wind, tree branches rustling, voices, clanging of objects, airplanes overhead, and so on. The key is to allow your mind to focus on anything that can be heard. Again, recognize stray or wandering thoughts, and let them passively go away by returning to your intention. Try this for five to 10 minutes. Practice Makes Perfect Mindfulness can be learned via practice, and though it takes time and commitment, the benefits are substantial. The techniques above can get you started, and helpful apps can also guide you through meditative experiences.74 In addition, your local gym might offer classes. For example, 24 Hour Fitness is exploring the use of special meditative pods that use sound and light to help people meditate.75 Experiencing nature can be very meditative and has been found to improve our mood and general outlook. If you want to make a walk like this meditative, take breaks now and then to focus on what you are seeing, hearing, or smelling. Tananya pitiwatsombat/Shutterstock Organizational Behavior: A Practical, Problem-Solving Approach 273Positive Organizational Behavior CHAPTER 7 THE BIGGER PICTURE Positive psychological capital is part of the positive OB movement and is a key person input in the Organizing Framework (Figure 7.2). You’ll often find it explained in terms of its compo- nents: hope, efficacy, resiliency, and optimism (HERO). You’re about to learn how to develop and benefit from your “inner HERO” or psychological capital. We also explore signature strengths, which are another way to utilize individuals’ positive attributes instead of attempt- ing to overcome weaknesses. 7.4 PSYCHOLOGICAL CAPITAL AND SIGNATURE STRENGTHS Individuals with high levels of positive psychological capital (PsyCap) possess con- siderable hope, efficacy, resilience, and optimism (HERO). To elaborate: H   Hope. Persevering toward goals and, when necessary, redirecting paths in order to succeed. E   Efficacy. Having the confidence to take on challenging tasks and put in the effort necessary to succeed. R   Resilience. When hampered by problems and adversity, sustaining and bounc- ing back and even beyond to attain success. O   Optimism. Making a positive attribution about succeeding now and in the future.76 Besides being positive PsyCap can be developed.77 Recall from Chapter 3 when we dis- cussed the relative flexibility of individual differences, such as attitudes and emotional intelligence (Figure 3.2). Flexible individual differences are opportunities for you and man- agers to develop and improve. This means training and practice can increase your PsyCap. Not only is your PsyCap flexible, but it also has been shown to improve many out- comes in the Organizing Framework, such as increasing job satisfaction, organizational commitment, and well-being, and decreasing intentions to quit, job stress, anxiety, and counterproductive work behaviors.78 PsyCap has also been shown to guard against negative experiences and events. One study found employees who were subjected to abusive supervisors, who also had high lev- els of PsyCap, still performed OCBs.79 Although these findings are interesting, we would likely advocate for improving or removing the abusive supervisor, instead of developing the PsyCap of employees so they can deal with it better. PsyCap also reduced the degree to which stockholders sold shares due to a negative earnings surprise.80 Not sure who benefits—the shareholders or the company? Let’s learn how to develop your PsyCap and that of others by focusing on the HERO traits. Hope = Willpower + Waypower You’re probably thinking, “Of course I know what hope is; what else is there to know?” You may even see yourself as more hopeful than the average person. If this is your view, you might be surprised to learn that hope actually has two components, and knowing this can help you understand why hope works, when it doesn’t, and how to build it. Describe how psychological capital and signature strengths can improve outcomes at work. LO 7-4 Organizational Behavior: A Practical, Problem-Solving Approach 274 PART 1 Individual Behavior The two components of hope are willpower and waypower. This means to have hope you need to have a goal and the determination to achieve it—willpower. You also need to see one or more paths to achieve your goal, even when faced with adver- sity—waypower.81 Hope requires both a goal and a means for achieving that goal. Ben Horowitz, the renowned technology entrepreneur and venture capitalist, puts a high premium on the willpower of entrepreneurs. Willpower, along with genius, are in his mind the two most crucial characteristics of successful entrepreneurs. “Building a com- pany is hard and lonely. It demands relentless focus. And no matter how well you do, you must be ready to be pummeled again and again.”82 It takes willpower to persist. Horowitz himself demonstrated enormous willpower when Loudcloud, an earlier venture with Marc Andreessen, nearly failed half a dozen times before ultimately being revived, strengthened, and sold to HP for $1.6 billion. Horowitz used “force of personality and willpower to make a business out of it,” said Herb Allen III, the CEO of Allen & Co.83 In a practical sense, hope supports adaptability and change.84 A series of studies showed hope led to increased adaptability for police officers and insurance sales agents, and in the case of the agents, it also led to increased sales commissions.85 You can build hope in yourself and others via effective goal setting (Chapter 6).86 The problem-solving approach can help too, because it can assist you in identifying potential obstacles, sources of support, and feasible alternate paths by which to reach your goal. Efficacy We discussed efficacy in Chapter 3; remember efficacy also is a component of your core self-evaluations (CSEs) and represents your confidence in your ability to achieve. It there- fore influences the way you perceive the world around you and your ability to deal with challenges and opportunities. Figure 3.4 provides a guide for improving your self-efficacy. Applying your knowledge of self-efficacy will help you realize its important role in positive psychological capital—greater efficacy makes you more confident, more positive, and more effective. Resilience If you’re resilient you have the capacity to consistently bounce back from adversity and to sustain yourself when confronted with challenges. Resilience helps you when things go your way and when they don’t—it is your built-in shield and recovery characteris- tic. Fred Luthans, the father of psychological capital, and his colleagues stated that resil- ience “is arguably the most important positive resource to navigating a turbulent and stressful workplace.”87 What gives resilience its power? Resilient people are open to new experiences, flex- ible to changing demands, and emotionally stable when confronted with adversity.88 It is no wonder that resilience is a component of psychological capital and positive OB. Resilience can be improved with support, such as coaching or help from others during trying times or experiences. The work climate, discussed in the next section of this chapter, can make employees feel safe enough to take risks and to make mistakes, thus enhancing their resilience.89 The following OB in Action box illustrates how resilience is used at one of the nation’s largest health systems and how to build a resilience pro- gram at work. Optimism Optimists are both realistic and flexible. Think about it—if you aren’t realistic you are setting yourself up to fail. And if you fail too often, even the most optimistic of us loses our motivation and inspiration. True optimists are flexible and willing to revise their views as situations change. (Recall the contingency approach to management discussed in Chapter 1.) However, optimists don’t see everything as positive; if so, they would be unrealistic or delusional. Organizational Behavior: A Practical, Problem-Solving Approach 275Positive Organizational Behavior CHAPTER 7 Kaiser Permanente is one of the largest health sys- tems in the United States, employing approximately 200,000 employees. Employee wellness is a primary focus for this organization and is led by Kathy Gerwig, VP of employee safety, health, and wellness. Ms. Gerwig is a member of the American Heart Association CEO Roundtable, which has studied the matter and pro- duces the Resilience in the Workplace Report.90 Ms. Gerwig and Kaiser address a broad range of issues confronted by workers today: relationships at work, emotional well-being, how we handle stress, and the increasingly dynamic and uncertain career landscape. Kaiser approaches these issues by focus- ing on six elements of employee well-being: physical health and safety, mental health and wellness, finan- cial well-being, career development, other relation- ships, and community involvement.91 VP Gerwig believes resilience threads through all of these elements, and as such she and Kaiser promote resilience at the individual, department, and organizational levels. For instance, Kaiser offers extensive resilience training not only for its employ- ees, but also for partners in the communities in which it operates, such as schools. The Resilience in the Workplace Report showed nearly three-quarters of those who participated in resilience training found it beneficial, in part by reducing stress and improving sleep. The AHA report also made recommendations for implement- ing a workplace resilience program that includes five practices:92 1. Understand the problem. Much like our own 3-Step Approach, the AHA recommendation is to identify the problems, find causes, and deter- mine to what extent resilience can help. 2. Create a culture supporting resilience. Develop the appropriate training and other practices to support resilience and stress reduction (paid time off, breaks, wellness programs, and employee development). And very importantly, ensure leadership support and participation. 3. Assess resilience and outcomes at baseline. Measure resilience and other outcomes ( job satisfaction, job stress, and sick time used) before implementing interventions, so you have a baseline against which to compare progress. 4. Determine program design. What are the com- ponents, who will deliver, who will participate, when, and where? 5. Implement and continuously improve.93 Just as you learned about performance management in Chapter 6: set goals, measure and evaluate, review and improve, and provide consequences. This course provides knowledge and tools of great value for each element. Now that you’ve learned what Kaiser does and the AHA recommends, what are your thoughts? YOUR THOUGHTS? 1. What is the likelihood you would participate in resilience training if offered by your employer? Why or why not? Explain. 2. Assume you are a manager and a believer in the benefits of resilience at work, what might you do to persuade your employees to participate in resilience training? 3. What are the potential downsides to employability resilience? Explain. Resilience Is Organizational at Kaiser OB in Action Also recall from Chapter 4 that optimists perceive the causes of events in a particular way. Optimists often attribute successes to “personal, permanent, and pervasive causes, and negative events to external, temporary, and situation-specific ones.”94 Scientists argue humans actually have an optimism bias which, in part, alters our views of the likely outcomes in our lives and motivates us to act.95 Have you ever wondered why people are optimistic in the first place? What function does optimism serve? One school of thought claims it is self-inspiration, our mind’s way of motivating us to move forward even if the future is uncertain. The rationale is if humans didn’t think the future would be bright—an improvement over today—they might be crippled with fear and uncertainty, never take risks, and never try to better them- selves or their situation. After all, humans have the unique ability to think ahead and to Organizational Behavior: A Practical, Problem-Solving Approach 276 PART 1 Individual Behavior realize they will die some day. If the mind didn’t have some way of combating this, then many people would be preoccupied with gloom and wouldn’t save money or invest in their children. Therefore, a belief that things can or will be better in the future not only helps keep our minds at ease, but it reduces stress (discussed in Chapter 16) and helps us color our decisions in a positive, appealing light and keeps us moving forward. How I Can Develop My PsyCap Like other more conventional forms of capital (cash, facilities, patents, equipment), PsyCap is a resource you invest in or develop with the expectation of future returns or benefits. It can help you flourish in your professional and personal life. Its components are mutually reinforcing—developing one often helps develop the others.96 Try putting the fol- lowing recommendations into practice and develop your PsyCap. • Hope development. Generate a work-related goal important to you and attainable yet challenging. Then, create multiple plans for achieving this goal, share them with others—coworkers or classmates, and get their feedback and recommendations. • Efficacy development. Besides recommendations from Chapter 3, break your larger goal into smaller sub-goals as discussed in Chapter 6. Create plans for achieving the sub-goals and share them with others to gain feedback and recommendations. • Resilience development. Make a list of your personal talents, skills, and social con- nections. Specify how these can help you achieve your goal, identify potential obsta- cles, and decide how to avoid them or reduce their impact.97 • Optimism development. Hope development bolsters your optimism, but it may be helpful to identify obstacles and negative expectations. On your own, check to see whether the obstacles you identify are valid, and have others challenge your assumptions. Complete Self-Assessment 7.3 to learn your personal PsyCap score, as it can help you understand and improve your ability to find a job, increase your creativity and innovative- ness, and reduce the stress in your life.98 Your score will also serve as the basis for develop- ing hope, efficacy, resiliency, and optimism, as described above. Let’s conclude this section with an exploration of signature strengths. What Is My Level of PsyCap? Please be prepared to answer these questions if your instructor has assigned Self- Assessment 7.3 in Connect. 1. Which score is the highest? The lowest? Complete the PsyCap development steps and be sure to utilize your highest or strongest component. Pay extra attention to developing the lowest or weakest component. 2. In the Organizing Framework identify a process at all three levels—individual, group, and organizational—that PsyCap is likely to influence. 3. Describe one thing you can do to further develop each component of your PsyCap. Adapted from F. Luthans, C. M. Youseff, and B. J. Avolio, Psychological Capital: Developing the Human Competitive Edge (Oxford, UK: Oxford University Press, 2006). SELF-ASSESSMENT 7.3 CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 277Positive Organizational Behavior CHAPTER 7 Signature Strengths Signature strengths “are positive human traits that influence thoughts, feelings, and behaviors and provide a sense of fulfillment and meaning.”99 Signature strengths are a subset, typically three to seven for most individuals, of a larger collection of 24 char- acter strengths (see Table 7.3). What helps differentiate signature strengths from the rest is that “a person owns, celebrates, and frequently exercises”100 them, and these strengths are “core to people’s identities, and feel authentic, exciting, and invigorating when used.”101 Signature strengths can be developed, too.102 TABLE 7.3 The 24 Character Strengths Creativity Zest Modesty Curiosity Love Prudence Judgment Kindness Self-regulation Love of learning Social intelligence Beauty Perspective Teamwork Gratitude Bravery Fairness Hope Perseverance Leadership Humor Honesty Forgiveness Religiousness SOURCE: Harzer, Claudia, and Willibald Ruch. “The Application of Signature Character Strengths and Positive Experiences at Work.” Journal of Happiness Studies 14, no. 3 (June 2012): 965–83. https://doi.org/10.1007/s10902-012-9364-0. A Departure from Past and Present The strengths movement represents a dra- matic departure from conventional management research and practice. As noted earlier, the vast majority of writing, research, and managing focuses on how to fix what is wrong and who is underperforming or otherwise not meeting expectations. Many large and successful organizations have used a strengths approach, for example, VMware, Wayfair, and the Boston Consulting Group. The primary focus is now on employee successes and potential, rather than on missteps and deficiencies.103 Research by the Gallup organization on employee strengths shows some impressive findings. Employ- ees who report using their strengths every day at work are: • Three times more likely to feel as though they have an excellent quality of life. • Six times more likely to be engaged at work. • 8 percent more productive. • 15 percent less likely to quit.104 Would you like to be more engaged with school, work, and leisure activities? If yes, your signature strengths are very likely the key. Self-Assessment 7.4 will help identify your signa- ture strengths. Use your scores to assess how you might build your strengths into daily activities at school, work, and life. Organizational Behavior: A Practical, Problem-Solving Approach 278 PART 1 Individual Behavior Applying Strengths at Work Consultants who work for Gallup, a firm instrumental in the strengths movement, said: “Giving employees a chance to excel by doing what they do best every day seems like a no-brainer. In too many organizations, though, encouraging employees to know and use their strengths at work is limited to a guerrilla movement.”105 This quotation highlights that the fundamental obstacles to realizing the benefits associ- ated with signature strengths are situation factors, such as leaders, managers, performance management practices, and organizational culture. Put another way, of course it is neces- sary to be aware of your strengths, but it also is necessary to be in situations allowing you to use them. Recent research should help persuade reluctant employees and leaders. Interventions, or activities and practices designed to identify and use peoples’ signature strengths, showed desirable results for a number of outcomes in the Organizing Framework for OB, such as increases in positive emotions, satisfaction, goal attainment, and academic performance, along with decreases in depression and counterproductive work behaviors.106 To help with this, we provide the following guidance on how organizations can create environments that foster and utilize employees’ strengths: 1. Look in the mirror. Like most work endeavors, a strengths approach requires leader support to succeed. Begin with leaders learning their own strengths and being open about them. Leaders, for instance, who show vulnerability and admit to their own mistakes and limitations can serve as powerful role models for the larger organization. 2. Build strengths into performance management. Strengths need to be supported by expectations, measurement, review, and rewards. It is an uphill battle to talk about, encourage, and celebrate strengths if performance management practices do not sup- port them. 3. Know your purpose. Leaders need to be clear on why they and the organization are focusing on strengths—what is the intended benefit? Is it greater collaboration, increased customer satisfaction, innovation, or reduced turnover? Employees need to understand why and how strengths are important to the organization and its objec- tives. 4. Coach and develop strengths-oriented managers. A strengths approach is not common, and implementing it effectively requires effort. Set your managers up to win by provid- ing appropriate coaching and support.107 Since you now have a sense of two flexible and very important positive individual differences—psychological capital and signature strengths—we move to the group/team level in the next section and discuss organizational climate. You’ll learn how policies and practices can help foster and realize the positive attributes of employees. What Are My Signature Strengths? Please be prepared to answer these questions if your instructor has assigned Self- Assessment 7.4 in Connect. 1. What are your highest-scoring strengths? 2. What are your weaknesses (the components with the lowest scores)? 3. Which of your strengths do you use daily? 4. What can you do to incorporate your strengths into school, work, and leisure activities? SELF-ASSESSMENT 7.4 CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach Sweetgreen is in the fast-casual health food busi- ness and focuses on what’s good for you and what’s good to you. It sells nourishment, natural and made to order, which is consistent with its mission to “build healthier communities by connecting people to real food.”112 Combine these elements (focus on employ- ees, quality product, and an enormous social media presence) and you have the recipe for success. But the most important ingredient of their success is the company’s positive culture. How they do this is quite remarkable. Emergency Fund. Employees make voluntary dona- tions to an emergency fund used to support other employees in times of need, such as a being dis- placed by a house fire or for travel to care for a sick family member. Gratitude. Positive comments from customers are collected and used for personal notes of gratitude from the owners. These are celebrated during Grati- tude Nights where employees get together to share and be recognized. Sweetgreen . . . Sweet Indeed OB in Action 279Positive Organizational Behavior CHAPTER 7 THE BIGGER PICTURE Organizational climate describes the way you and your cohorts evaluate the school you attend or the workplace you share. A positive climate is one component that makes positive organi- zational behavior work, and you’re about to discover how organizations and managers can foster such a climate. 7.5 POSITIVE ORGANIZATIONAL CLIMATES You may be the most positive person you know, but to flourish you need the right environ- ment. Figure 7.2 shows organizational culture and climate are the key situation factors that promote positive work environments, meaning they are critical to reaping the benefits of POB. We focus on organizational climate in this section (again in Chapter 10) and organi- zational culture in Chapter 14. Organizational climate consists of employees’ shared perceptions of organiza- tional policies, practices, procedures, and routines.108 Simply put, organizational cli- mate reflects employees’ beliefs about what they see going on at work and what is happening to them. These perceptions can range from positive and uplifting to negative and debilitating. Positive climates, such as one that supports safety, lead to positive out- comes like fewer accidents at work.109 Supportive climates—those in which employees believe the organization values their contributions, provides support, and cares about their well-being—can serve as a buffer against the demands and stressors in wide range of jobs.110 In contrast, negative climates that condone abusive supervision or fear are associ- ated with negative outcomes, like less cooperation, less citizenship behavior, and lower performance.111 What type of climate do you think is most likely to promote positivity from situation factors? The OB in Action box describes how fast-fresh restaurant Sweet- green does it. Develop a climate that promotes positive organizational behavior. LO 7-5 Organizational Behavior: A Practical, Problem-Solving Approach 280 PART 1 Individual Behavior Figure 7.4 presents a model showing positive climates are a function of organizational values, organizational practices, and virtuous leadership. We’ll explore each of these situa- tion factors next. Organizational Values We defined values in Chapter 2 as abstract ideals that guide our thinking and behavior across all situations. In the context of organizational climate, organizational values repre- sent ideals endorsed, shared, and supported by the organization as a whole. Three global values essential for promoting positive organizational behavior are described next (see Figure 7.4).115 1. Restorative justice reflects “a shared belief in the importance of resolving con- flict multilaterally through the inclusion of victims, offenders, and all other stakeholders.”116 Organizations subscribing to restorative justice tend to resolve con- flict by giving all parties a chance to express their thoughts and feelings. This in turn leads to healing when there has been hurt or offense, thereby producing solutions focusing on the greater good. Community Impact. Employees are encouraged and given time to support local causes, and in some cases the efforts are in coordination with larger agencies like the LA Food Policy Council.113 Also notable is such positivity does not require vast resources, meaning it isn’t just for large, public multinationals companies. Sweetgreen was started by three Georgetown University graduates who started small, but after 11 years have 90 locations and have attracted piles of venture capital. But how did they get here? What if you want to do something similar? The following advice may help. • Job #1—Employee Wellness. A positive culture isn’t possible without tending to employee well-being at work and in their larger life space. Ensure employees have resources for professional development and health. • Make It Mean Something. Like those at Sweetgreen, employees prefer to have a clear purpose in their work, they want to see a meaningful impact. Mission and vision statements can help, but what matters most is how they are put into practice, beginning with the leaders at every level. • Goals with Impact. Include employee devel- opment, community involvement, and custom- ers in your goals. The knowledge and skills learned in Chapter 6 can help. • Be Positive. Positivity needs to be part of daily  practice, so express gratitude, smile, be  optimistic. Remember, emotions are contagious, make yours positive and infec- tious.114 YOUR THOUGHTS? 1. What is most compelling to you about the Sweet- green approach? 2. What do you think are the 2 or 3 biggest chal- lenges for managers of Sweetgreen restaurants? 3. Assume you started a business, what do you think would be the challenges of implementing a similarly positive approach? How might you address such challenges? Jeffrey MacMillan/The Washington Post/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 281Positive Organizational Behavior CHAPTER 7 2. Compassion is a shared value that drives people to help others who are suffer- ing. It is associated with behaviors related to sympathy, kindness, tenderness, warmth, and love.117 3. Temperance is a shared belief in showing restraint and control when faced with temptation and provocation. Temperance promotes self-control, humility, and pru- dence. It helps people avoid egocentric and heated emotional responses and practice patience and restraint.118 Organizational Practices Organizational practices are the procedures, policies, practices, routines, and rules that organizations use to get things done. Figure 7.4 shows training programs, support programs, and human resource practices and policies represent three key sets of practices that shape organizational climate.119 Employees have greater commitment, satisfaction, citizenship behavior, and performance—and lower absenteeism and inten- tions to quit—when they believe organizational practices support them professionally or personally.120 Marc Benioff, CEO and co-founder of Salesforce, has created a company climate that fosters positive OB. Many would consider him a virtuous leader. He exudes benevolence and often speaks of how leaders in all industries, but especially technology, have a larger responsibility to make the world a better place. Certainly not at the expense of profits, but while making them. Salesforce’s organizational practices are clearly employee focused. It provides excep- tional benefits and rewards for its employees, such as bonuses for employee referrals. It paid out over $5 million for such referrals in 2017. It also uses its software to identify FIGURE 7.4 Creating a Climate that Fosters Positive Organizational Behavior Organizational Climate That Fosters Positive Organizational Behavior • Restorative Justice • Compassion • Temperance Organizational Values • Training • Support Programs • Human Resource Practices, Programs, and Policies Organizational Practices • Greater Good • Trust • Integrity • Forgiveness Virtuous Leadership Organizational Behavior: A Practical, Problem-Solving Approach 282 PART 1 Individual Behavior employees who have not been promoted within the past year and a half and actively seeks new challenges and opportunities for them. All employees are given 56 hours of paid leave each year to volunteer in the community. No wonder it was number two on Fortune’s 2019 list of Best Places to Work.121 Benioff’s conduct and the company’s practices reflect underlying values of compas- sion, temperance, and restorative justice. For instance, Benioff is outspoken and addresses social issues often, including those related to LGBTQ rights, pay equity, and the down- sides of social media.122 Virtuous Leadership Virtuousness represents “what individuals and organizations aspire to be when they are at their very best.”123 The focus of virtuous leadership is to help individuals, groups, and organizations to elevate, enrich, and flourish. Although Chapter 12 provides a broad discussion of leadership, we consider it here as well due to its significant relation- ship with organizational climate.124 OB scholars have proposed a variety of traits and individual differences that underlie virtuous leadership. The four shown in Figure 7.4 were selected because they are most frequently discussed in OB research. Virtuous leaders are more focused on the greater good than on self-interest. Virtuous leaders tend to promote trust by making sure their words match their actions, and by treating people with respect and dignity. Integrity, which comes from being guided by morals and honesty, fosters positive OB. For example, people who lied less over 10 weeks were found to have improved mental and physical health than people who lied more frequently.125 The final component of virtuous leadership, forgiveness, is “the capacity to foster collective abandonment of justified resentment, bitterness, and blame, and, instead, it is the adoption of positive, forward-looking approaches in response to harm or damage.”126 In addition to promoting positive outcomes, forgiveness can affect your health. Research shows that unforgiveness is associated with bitterness, anger, health problems, and premature death.127 Organizational Behavior: A Practical, Problem-Solving Approach 283Positive Organizational Behavior CHAPTER 7 THE BIGGER PICTURE If asked what you want out of life, you might reply you want to be happy. One early leader in the positive psychology movement eventually went beyond that goal and proposed another: Flourishing. You may find this broadened goal to include even more of your true aspirations. Flourishing, a key individual-level outcome in the Organizing Framework, includes five ele- ments: positive emotions, engagement, relationships, meaning, and achievement (PERMA). 7.6 FLOURISHING: THE DESTINATION OF POB Martin Seligman, a renowned psychologist from the University of Pennsylvania, has stud- ied happiness and well-being for over 30 years. He is credited as the driver of today’s posi- tive psychology movement, which is the forerunner of POB.128 Seligman originally believed happiness was the most important outcome in our lives but has changed his mind over the years. He now believes people equate happiness with being cheerful, and you don’t have to be cheerful to be physically or psychologically healthy. Seligman proposed that well-being was the combined impact of five elements— positive emotions, engagement, relationships, meaning, and achievement (PERMA). Well-being comes from freely pursuing one or more of these five elements.129 Flourishing represents the extent to which our lives contain PERMA. PERMA is the most important outcome from the process of positivity shown in Figure 7.2 When we flourish, our lives are characterized by “goodness . . . growth, and resilience.”130 We should all strive to flourish because of its association with other positive outcomes like lower car- diovascular risk, lower levels of inflammation, longer life, greater REM sleep, and positive mental health.131 PERMA elements are also positively related to important outcomes in the Organizing Framework—task performance, career satisfaction, organizational commit- ment, and low turnover.132 An interesting study of first-year university students found the following experiences contributed most to their flourishing: • Socializing with new and old friends. • Enjoying their academic subjects. • Having more free time. • Understanding and performing well in class.133 This demonstrates the importance of positive emotions, relationships, and achievement— PERMA—in college. Flourishing is also profitable. Many investors now include social responsibility and a focus on the greater good when it comes to employees and communities as key criteria in their investment decisions. Positive Emotions Although we thoroughly discussed positive emotions earlier in this chapter, one aspect of Barbara Fredrickson’s “broaden and build” theory bears repeating because it enhances your ability to experience the other components of PERMA. Positive emotions broaden Create the conditions for flourishing in your job and career. LO 7-6 Organizational Behavior: A Practical, Problem-Solving Approach PART 1 Individual Behavior284 your perspective as to how to overcome challenges in life. For example, the emotion of joy is more likely to lead you to envision creative ideas during a brainstorming session. Posi- tive emotions also build on themselves, resulting in a spreading of positive emotions within yourself and to those around you. Some companies understand the power of positive emotions and the significant damage possible from negative emotions. The Applying OB box shows how this knowl- edge is applied in the context of recruiting—not to those that are hired but to those that are not. Applying OB The reality when interviewing for a job is only one person can get it. If it isn’t you, then you join the often hundreds of other applicants who were rejected. How you feel about this is in part a function of how you were treated by the prospective employer. Feeling disappointed about the outcome is one thing; how- ever, your feeling disrespected or even scorned can make an enormous difference to that company’s bottom line. Talent Board, a nonprofit devoted to improving job candidate experience, has a “candidate experiences resentment calculator” to help organizations estimate how much mistreated candidates can cost. They approach each candidate as though they were a potential or current customer for a given company’s products or services, with the potential to spend $100 per year. Let’s say this same company has 100 appli- cants for 10  jobs. This equates to 1,000 people to delight, or at the very least not disappoint. You can see how the numbers can get large, really large. Multiply those numbers year after year and you can clearly see the potential for both positive and negative impact. Tal- ent Board has also showed that nearly three-quarters of candidates would be inclined to do business with a company which treated them well in the interview pro- cess, and 46 percent said they would end the relation- ship if treated poorly.134 Kimberly-Clark understands this potential. The enormous consumer goods company (Huggies, Cot- tonelle, and Kleenex) sends coupons to candidates who are interviewed via phone, and also requires man- agers to send thank you notes to those who interview face-to-face. More importantly, they keep candidates informed of the process.135 Research shows candidates expect and appreci- ate interviews to be conducted as scheduled and for  hiring decisions to be made and communi- cated as  intended. Not surprisingly, the top reason candidates withdraw from the process is prospective employers not being respectful of their time. The classic and all too common example is: “We plan to hold interviews in two weeks and will get in touch,” but six weeks pass by and still no communication or action.136 So, how do you and your employer foster positive candidate experiences? The following advice can help you in evaluating the care and respect you have or have not bestowed on candidates (or you have experi- enced as a candidate). 1. Manage Expectations. This seems so obvious, yet is too often ignored. Organizations need to give thought to and communicate the details, and make good on them, such as content and length of resumes, what to expect during interviews (phone, Skype, or face-to-face), timing, and other details related to the process. If prospective employers don’t provide them, candidates will, thus increas- ing the chances of unmet expectations and unde- sirable outcomes. 2. Listen. In almost any search and hiring process candidates want to ask questions and to be heard. It is helpful to train those involved in the process to listen, ask if there are questions, and give candi- dates opportunities to make their case. 3. Be Accountable. The hiring organization needs to apply performance management techniques (see Chapter 6), to ensure the goals and expec- tations are clear, measured, evaluated, and rein- forced. A good hiring process requires more than filling the position; importantly, data needs to be collected on those not hired too. This infor- mation can provide valuable insights, such as identifying candidates for future jobs and revis- ing the recruiting messaging to attract better candidates. Converting Rejection into Business, or Not CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 285Positive Organizational Behavior CHAPTER 7 4. Manage Decision Time and Communication. Most processes involve a series of cuts or rounds, and candidates should be informed promptly when they are no longer being considered. For candidates who make it far into the process, the courtesy of a phone call should be given and for others a promptly sent e-mail will do. Don’t wait weeks and months to do this. Communicate final decisions promptly as many candidates are not sitting around waiting. Her or his application to your company is unlikely to be the only one await- ing a decision. 5. Fairness. You’ve learned about fairness many times in this book already, and it is no surprise it can make or break a candidate’s experience and thus add to or subtract from the company’s bottom line. If candidates feel they did not get a fair chance, or were not appropriately considered, there is a problem. 6. Be Sure to Include This Question. Regardless of the job or process, consider asking every candi- date, “Is there anything else you would like us to know?”137 Apply this knowledge if you’re ever in the position of hiring others because tending to these details can have a significant impact on you and your organiza- tion’s ability to make good hires in the short and long term, as well as impact the potential to gain or lose customers. Keep these factors in mind when interview- ing for positions, as the way in which prospective employers tend to these details may assist you in determining whether they are worthy of your talents and/or your business. Engagement You recall from Chapter 2 that employee engagement reflects the extent to which you are physically, cognitively, and emotionally engaged in an activity, task, or project. This state is sometimes called being “in the zone” or in a state of “flow.” Flow “is the state of being completely involved in an activity for its own sake.”138 Flow is a positive state because our well-being benefits from our deep attention to and engagement with an activity. Engagement and positive emotions are not one and the same. When we are in flow, we are not necessarily thinking about anything; we are just doing! Our concentration is so high during flow that we use all the cognitive and emotional resources normally needed for thought and feelings. How can you create engagement or flow for yourself? Seligman and others suggest this is a two-part sequence consisting of (1) identifying your signature strengths and (2) learn- ing to use them in daily personal and work activities.139 For us, working on this book, teaching, and playing golf are activities that put us into flow. Once you have identified your strengths, you can work with your manager to determine how to incorporate them into your job. Relationships Think of the last time you had a belly-laugh, felt joyous, were inspired, or experienced awe. Were you with someone else at the time? We suspect so, because positive emotions are often associated with activities that include others. Biologists explain that humans are creatures of the hive. After studying insects like wasps, termites, and ants, researchers concluded the group is a natural unit of selec- tion. In other words, both insects and people prefer to be in groups and to work collaboratively with others to get things done. For insects it is building a fortress or hive and for us it is completing tasks and projects, socializing, sharing memories, and traveling. While others may on occasion annoy us, positive relationships are a strong contribu- tor to our well-being. They buffer us from stressors and provide resources enabling us to more effectively accomplish tasks. Positive relationships fuel the giving and receiving of Organizational Behavior: A Practical, Problem-Solving Approach 286 PART 1 Individual Behavior social support. Social support is the amount of perceived helpfulness we derive from social relationships. There are four types. • Esteem support: reassurance a person is accepted and respected despite any prob- lems or inadequacies. • Informational support: help defining, understanding, and coping with problems. • Social companionship: time spent with others in leisure and recreational activities. • Instrumental support: financial aid, material resources, or needed services.140 You can enhance your level of flourishing by seeking social support, but you will also flourish by providing support to others, particularly in the form of kindness. Research shows us the exhibition of kindness produces significant increases in well-being.141 Con- duct a kindness exercise by doing a completely unexpected thing for someone else. It can be as simple as holding a door open for another to pass through or helping some- one with directions. Notice how you feel. You should experience one or more positive emotions. Meaningfulness Viktor Frankl, an Austrian neurologist and psychiatrist who survived the Holocaust, was a strong proponent of using meaningfulness to promote well-being. His best-selling book Man’s Search for Meaning chronicled his experiences in concentration camps and summa- rized what he learned from these events. Frankl’s conclusion was “striving to find a mean- ing in one’s life is the primary motivational force” for people.142 In other words, it is the drive to find meaning in our lives that instills in us a sense of purpose and motivation to pursue goals. First responders, and the many others that assist in the recovery of natural disasters, work for more than just a paycheck. It is safe to assume they find tremendous meaningfulness in their work. Frederic J. Brown/AFP/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 287Positive Organizational Behavior CHAPTER 7 Meaningfulness is the sense of “belonging to and serving something that you believe is bigger than the self.”143 In our case, for instance, we derive meaning from writ- ing this book because we believe it can enrich your life and help you manage others more effectively. We have three suggestions for building meaning into your life. 1. Identify activities you love doing. Try to do more of these activities or find ways to build them into your work role. Employees at Stryker, a medical devices company headquar- tered in Michigan, are encouraged to witness the impact of their work. They observe surgeries, interact with doctors and patients, and some have even performed proce- dures on cadavers to get a different perspective. Stryker is #11 on Fortune’s 2019 Best Places to Work.144 2. Find a way to build your natural strengths into your personal and work life. You assessed your signature strengths earlier in Self-Assessment 7.4. Kimley-Horn, a planning and design company (e.g., hospitals, resorts, and sports facilities) and #18 on Fortune’s list, asks and allows employees to set up their own “mini-practices” where they identify new locations for developing new projects for their diverse customers.145 The compa- ny’s website states: “Employees know our culture and approach to business are built on a desire to see our staff flourish, one and all.”146 3. Go out and help someone. Research shows people derive a sense of meaningfulness from helping others.147 Accounting and consulting firm Crowe-Horwath clearly believes in helping others; for instance, it provides its employees with 96 paid hours to volunteer annually. That’s 12 eight-hour work days for each employee totaling about 30,000 hours of community, pro-bono, and volunteer service!148 Helping others cre- ates the upward spiral of positivity we discussed earlier in this chapter. Achievement The final component of PERMA, achievement, pertains to the extent to which you have a self-directed “achieving life.” In other words, we flourish when we pursue achievement for its own sake. Doing so fosters feelings of competence and mastery, which in turn enhances our self-esteem and self-efficacy. Companies help employees achieve by providing skills- based training and professional developmental activities. Training magazine created a list of the top 125 U.S. companies that invest in such training. The top five in 2018 were Lead- ing Real Estate Companies of the World, New York Community Bancorp, Sonic Automo- tive, BNSF Railway Company, and Dollar General Corporation.149 Let’s conclude this chapter with a few explicit applications of the knowledge and tools from this chapter. Organizational Behavior: A Practical, Problem-Solving Approach 288 PART 1 Individual Behavior Takeaways for Me There are six ways you can apply the material in this chapter: 1. Share important information and provide effective feedback. Since positive practices amplify positive outcomes, you can improve your work environment by identifying and emphasizing such practices, like sharing important information and providing effective feedback. 2. If you are upset with your partner or coworker, try to think of at least three things you like or appreciate about him or her. Similarly, if someone is upset with you, realize you need several positive interactions or actions to compensate for each negative. 3. Develop a plan to be more mindful. Techniques like meditation and yoga can enhance your ability to focus and hold your attention. Many good books and apps can help in this pursuit. 4. Making your goals SMART and formulating effective action plans will help build your level of hope (goal + path = hope). Hope should boost your goal commitment and success. 5. You can contribute to a positive organizational climate by adhering to the values your employer endorses and by trying to be more virtuous. 6. Develop a plan to build PERMA into your life by focusing on those components over which you have more control. You can make a choice to be more positive, you can work on building more positive relationships in your life, and you can strive for achievement. Takeaways for Managers There are seven key implications for managers: 1. Identify existing positive practices, such as appropriately and regularly recognizing per- formance, and emphasize them. Role-model these practices and watch your people flourish. 2. Realize your emotions are contagious. To build a positive environment for your people, be positive yourself. Random acts of kindness can go a long way (give someone a spot bonus or an afternoon off or throw an impromptu celebration in the office). 3. Model mindfulness by being focused on the present moment whenever you are talking or meeting with others. You can also establish a policy of not using web-based or mobile technologies during meetings. 4. Encourage your employer to train employees in mindfulness techniques. Describe the implications of positive organizational behavior for you and managers. LO 7-7 THE BIGGER PICTURE We conclude this chapter with a number of practical applications of POB knowledge and tools to improve your effectiveness as both an employee and manager. 7.7 MAKING THE CONNECTION: HOW CAN I FLOURISH AT SCHOOL, WORK, AND HOME? Organizational Behavior: A Practical, Problem-Solving Approach 289Positive Organizational Behavior CHAPTER 7 5. Learn about and utilize your strengths and those of the people you manage. Be sure to verbally acknowledge others’ strengths and create opportunities for them to be used. 6. Endorse and model your employer’s stated corporate values and engage in more virtuous leadership. 7. Support your employees’ level of PERMA by engaging in one or more of the following: (1) display positive emotions at work, (2) identify the tasks or responsibilities that engage your employees and find ways to design them into their jobs, (3) provide the four sources of social support when possible, (4) use I-deals, discussed in Chapter 5, to help employees find meaning in their work, and (5) encourage creative approaches to achieving goals. We hope you now have a greater understanding of the tangible and far-reaching benefits of positivity and positive OB. Use this knowledge to improve not only your own well-being and performance, but that of your coworkers and friends. Organizational Behavior: A Practical, Problem-Solving Approach 290 PART 1 Individual Behavior In this chapter, you learned positive OB focuses on creating work environments in which people flourish, and a number of techniques that can help increase your positivity at school and home. Reinforce and consolidate your learning with the Key Points and Organizing Framework. Then chal- lenge your mastery of the material by completing the Problem-Solving Application Case and Legal/ Ethical Challenge below. Key Points for Understanding Chapter 7 You learned the following key points. 7.1 THE VALUE OF POSITIVITY • Positive OB emphasizes positive inputs, pro- cesses, and outcomes across all three levels of OB. • Positive OB operates via amplifying, buffer- ing, and positivity. • Positivity is more than positive thinking and improves health, relationships, performance, and many other aspects of your jobs and career. 7.2 THE POWER OF POSITIVE EMOTIONS • Negative emotions cause you to narrow your focus, while positive emotions cause you to broaden your thinking. • Positive emotions are contagious and can be actively increased. • Research shows you need multiple positive experiences to overcome or compensate for each negative. 7.3 FOSTERING MINDFULNESS • Mindfulness is fostered by paying attention to the present moment in a nonjudgmental way. • Mindfulness can be learned through a variety of simple “meditative” techniques practiced on a regular basis. 7.4 PSYCHOLOGICAL CAPITAL AND SIGNATURE STRENGTHS • Positive psychological capital (PsyCap) con- sists of hope, efficacy, resilience, and opti- mism (HERO). • Hope includes not only a goal and determina- tion to achieve it, but also one or more clear paths for achieving it. • Resilience is your ability to bounce back after adversity and sustain yourself. • Optimism attributes positive events to per- sonal, permanent, and pervasive factors. • Signature strengths are a handful of personal attributes influencing your thoughts, feelings, and behaviors. 7.5 POSITIVE ORGANIZATIONAL CLIMATES • Organizational climate represents employees’ perceptions of an organization’s policies, practices, procedures, and routines. • Positive organizational climates are a function of organizational values, organizational prac- tices, and virtuous leadership. • The key components of virtuous leadership are a focus on the greater good, trust, integ- rity, and forgiveness. 7.6 FLOURISHING: THE DESTINATION OF POB • Flourishing reflects the extent to which our lives contain positive emotions, engagement, relationships, meaning, and achievement (PERMA). • Positive emotions are contagious. • You can increase engagement by using your signature strengths in everyday activities. • Four key types of social support are esteem support, informational support, social com- panionship, and instrumental support. What Did I Learn? Organizational Behavior: A Practical, Problem-Solving Approach 291Positive Organizational Behavior CHAPTER 7 across the three levels of OB. You can also see there are processes at the individual, group/ team, and organizational level that affect out- comes. As for outcomes affected by the inputs and processes shown in Figure 7.5, individual- level ones include task performance, work atti- tudes, flourishing, physical health, citizenship behavior/counterproductive behavior, turnover, and creativity. At the group/team level, outcomes include group/team performance and group cohesion and conflict. Finally, at the organiza- tional level, outcomes include financial perfor- mance, overall organizational performance, and customer satisfaction. 7.7 HOW CAN I FLOURISH AT SCHOOL, WORK, AND HOME? • Well-being Is comprised of positive emotions, engagement, relationships, meaning, and achievement (PERMA). • Flourishing reflects the extent to which our lives contain PERMA. • Meaningfulness can be enhanced by doing things you love, utilizing your strengths, and helping others. The Organizing Framework for Chapter 7 Figure 7.5 shows four person factors and five situation factors contribute to positive outcomes INPUTS PROCESSES OUTCOMES Person Factors • Emotions • Mindfulness • Psychological capital • Signature strengths Situation Factors • Organizational culture • Organizational climate • Organizational values • Virtuous leadership • Organizational practices Individual Level • Communication • Decision making discretion • Interpersonal conflict Group/Team Level • Communication • Civility • Group Dynamics Organizational Level • Communication Individual Level • Task performance • Work attitudes • Flourishing • Physical health • Citizenship behavior/ counterproductive behavior • Turnover • Creativity Group/Team Level • Group/team performance • Group/team cohesion and conflict Organizational Level • Accounting/financial performance • Organizational performance • Customer satisfaction FIGURE 7.5 Organizing Framework for Understanding and Applying OB SOURCE: ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. Organizational Behavior: A Practical, Problem-Solving Approach 292 PART 1 Individual Behavior HISTORY OF OPIOIDS AND MEDICAL USE The human experience contains both joy and pain, and physical forms of the latter have many causes, from dis- ease to trauma. Since the 1800s humans have been treating pain with opioids, a class of very powerful pain- killers extracted and created from the opium poppy, such as heroin, morphine, and codeine. To provide a sense of the long history and use of opioids, it is inter- esting to note the Bayer Company manufactured heroin for commercial sale in 1898. One of the major uses at the time was as a cough suppressant, and not just for pain relief. The addictive properties became well known by the 1920s and the sale of heroin was banned.150 World War II was a turning point in opioid use. The scale of the war resulted in enormous numbers of inju- ries and soldiers who suffered from both acute and chronic pain, but physicians then had a limited arsenal with which to treat such conditions. Oxycodone, manu- factured from a chemical in opium, was one of the drugs used in what was then the early days of what we now refer to as pain management. New drugs entered the market in the 1970s, like Percodan (oxycodone and aspirin) and Percocet (oxycodone and acetaminophen), but most physicians were taught to avoid prescribing such highly addictive medications to patients.151 CHANGING VIEWS The scenario began to change in the 1980s when an article printed in the New England Journal of Medicine pushed back against the perceived dangers of prescrib- ing opioids. The physician author claimed addictions were rare in patients with no history of addiction, and adverse effects were no greater than those of other drugs.152 People with chronic pain, such as those with termi- nal illnesses, became the new patients for opioids. In a few short years, physicians’ perceptions had changed, and the risks of abuse and addiction were seen as rel- atively low compared to the benefits for patients in otherwise dire circumstances.153 Although addiction and abuse were very real, by the 1990s medical opinions were shifting and prioritizing pain management as a primary motive and responsibil- ity for physicians everywhere.154 This resulted in a much greater use of opioids, which to this point had all been very fast-acting. This was problematic for millions of patients whose pain was more or less constant, such as those with cancer, since fast-acting pain relievers had to be taken about every four hours. Longer-acting and safer alternatives were desperately needed.155 ENTER PURDUE PHARMA AND OXYCONTIN Purdue Pharma is a private company founded by three Sackler brothers in 1952, and it has been run or at least controlled by Sacklers ever since. The family has amassed an enormous fortune, estimated at approxi- mately $13 billion by Forbes in 2016, and have donated generously to universities, medical schools, and muse- ums around the world:156 Tuft’s University, University of Nebraska, National Academy of Sciences, New York Presbyterian Hospital, Dia Art Foundation, Global Pov- erty Project, Victoria and Albert Museum in London, the Guggenheim, and the Brooklyn Museum.157 Purdue Pharma began testing OxyContin, an extended release version of oxycodone (in use since the early 1900s), in 1994 with the hopes of filling the need in the market: effective and extended pain relief with reduced addictive qualities. The drug was approved and brought to market in 1996 as a safe alternative to existing opioids. During the same space of time pain- killer prescriptions increased from 2 million to over 10 million per year.158 One current estimate puts total sales of OxyContin at $35 billion for Purdue.159 CONDUCT AND CONSEQUENCES Purdue’s marketing efforts were aggressive and effec- tive. For instance, a doctor in a promotional video stated: “These drugs, which I repeat, are our best, strongest pain medications, should be used much more than they are for patients in pain.” Only a year later painkiller prescriptions had jumped by 11 million, not to 11 million but an additional 11 million. Sales grew from $48 million in 1996 to nearly $1.1 billion in 2000, and this was spurred by dozens of pain man- agement and speaker training conferences across the U.S., attended by more than 5,000 physicians, pharma- cists, and nurses (all-expenses-paid). In 2001 alone, Purdue was said to have spent $200 million on pro- moting the use of opioids and OxyContin.160 The goal of course was to educate, and boost prescriptions. After OxyContin’s launch in 1996, Purdue more than doubled its number of sales reps and provided extremely generous sales incentives. Average annual salaries for reps were $55,000 and annual bonuses averaged over $70,000 (ranging from $15,000 to more than $200,000). To spur sales further still, representatives provided cou- pons for physicians to offer to patients a free month’s supply.161 Purdue didn’t just incentivize sales, it pres- sured them too. Court documents show that a sales VP sent a message chastising the representatives in the PROBLEM-SOLVING APPLICATION CASE Opioids: Pain Relief, Grief, and Purdue Organizational Behavior: A Practical, Problem-Solving Approach 293Positive Organizational Behavior CHAPTER 7 Sackler family with exacerbating the opioid epidemic. The indictment accuses them of personally micromanag- ing a long-term deceptive marketing campaign to encour- age hundreds of employees and tens of thousands of physicians to inappropriately prescribe Oxycontin. Citing the CDC, AG Healy claimed approximately 400,000 people died from opioid overdoses between 1999 and 2017, and the family’s role was central and thus they should be held accountable. Thirty-five other states are also suing Purdue Pharma for downplaying the risks and promoting Oxy as a less additive alterna- tive opioid.166 Assume you are the CEO and chair of the board of Purdue, but not a member of the Sackler family. What would you do? APPLY THE 3-STEP PROBLEM- SOLVING APPROACH TO OB STEP 1: Define the problem. Use the Organizing Framework in Figure 7.5 and the 3-Step Problem-Solving Approach to help identify inputs, processes, and outcomes relative to this case. A. Look first at the Outcomes box of the Organizing Framework to help identify the important problem(s) in this case. Remember that a problem is a gap between a desired and current state. State your problem as a gap and be sure to consider problems at all three levels. If more than one desired outcome is not being accomplished, decide which one is most important and focus on it for steps 2 and 3. B. Cases have key players, and problems are generally viewed from a particular player’s per- spective. You need to determine from whose perspective—employee, manager, team, or the organization—you’re defining the problem. In this case, you’re asked to assume the role of CEO and chair of the board of directors for Purdue (but not a member of the Sackler family). C. Use details in the case to determine the key problem. Don’t assume, infer, or create problems not included in the case. D. To refine your choice, ask yourself, why is this a problem? Explaining why helps refine and focus your thinking. Focus on topics in the current chapter, because we generally select cases illustrating con- cepts specifically located within the current chapter. STEP 2: Identify causes. Using material from this chapter and summarized in the Organizing Framework, identify the causes of the problem you identified in Step 1. Remember, causes tend to appear in either the Inputs or Processes boxes. A. Start by looking at the Organizing Framework (Figure 7.5) and decide which person factors, if any, are most likely causes of the defined prob- lem. For each cause, explain why this is a cause Boston sales district. He threatened that if sales of opioids didn’t increase then those representatives should be fired; he wanted to send a message. The sales manager allegedly agreed.162 By 2003 nearly half of all OxyContin prescriptions came from primary care physicians, rather than anes- thesiologists and other specialists who previously dominated pain management and treatment. WHERE ARE THE LEADERS IN ALL OF THIS? Amid the growing evidence of abuse in the early 2000s, Richard Sackler, then chairman and president of Purdue, fought back, advising the company and its rep- resentatives to push the blame onto the addicts them- selves. He was quoted as saying, “We have to hammer on abusers in every way possible. . . . They are the cul- prits in the problem. They are reckless criminals.”163 These aggressive tactics ultimately cost the company over $600 million in fines, when in 2007 three execu- tives pled guilty for misrepresenting the dangers of Oxy- Contin. The Sacklers, however, were not accused and faced no personal repercussions. The Sacklers and Pur- due Pharma pressed on and explored selling the prod- uct in countries with no controls on such medications while at the same time expanding promotions in the U.S. OTHER CONTRIBUTORS At the turn of the millennium some regulatory changes accelerated the popularity of prescription painkillers. The Joint Commission, a major governing body that reviews and accredits hospitals and medical centers, began requiring all patients to be assessed for pain and failing to do so effectively would result in a sanc- tion. The Joint Commission printed a book in 2000 to be used by physicians in continuing education semi- nars, citing the evidence for opioid addiction was lim- ited and their use effective. (Note: The book was sponsored by Purdue Pharma, and the Joint Commis- sion removed this standard in 2009.)164 In 2010 Purdue Pharma released a new formulation of OxyContin, one which was reformulated to make it more difficult to crush and snort, as was commonly done by those that abused it. This was done in response to the growing evidence of abuse, but research and clinicians continued to question the efficacy of this reformulation. WHERE ARE WE NOW? By 2016 the director of the Centers for Disease Control, Dr. Tom Frieden, wrote in the New England Journal of Medicine, “We know of no other medication routinely used for a nonfatal condition that kills patients so fre- quently.” He noted that data on long-term opioid use was still lacking, but what he did know at the time was that perhaps as many as 26 percent of patients using opioids for chronic noncancer pain become dependent on it.165 In early 2019, Massachusetts Attorney General Maura Healy charged Purdue Pharma and eight members of the Organizational Behavior: A Practical, Problem-Solving Approach 294 PART 1 Individual Behavior problem and confirm the link or cause and effect connection. STEP 3: Recommend solutions. Make your recommendations for solving the problem. Consider whether you want to resolve it, solve it, or dissolve it (see Section 1.5). Which recommendation is desirable and feasible? A. Given the causes you identified in Step 2, what are your best recommendations? Use material in the current chapter that best suits the cause. Consider the OB in Action and Applying OB boxes, because these contain insights into what others have done. B. Be sure to consider the Organizing Framework— both person and situation factors—as well as processes at different levels. C. Create an action plan for implementing your rec- ommendations and be sure your recommendations map onto the causes and resolve the problem. of the problem. Asking why multiple times is more likely to lead you to root causes of the problem. For example, do executive characteristics help explain the problem you defined in Step 1? B. Follow the same process for the situation fac- tors. For each ask yourself, why is this a cause? By asking why multiple times you are likely to arrive at a complete and more accurate list of causes. Again, look to the Organizing Frame- work for this chapter for guidance. Did particular policies or practices play a role? C. Now consider the Processes box in the Organiz- ing Framework. Are any processes at the indi- vidual, group/team, or organizational level potential causes of your defined problem? For any process you consider, ask yourself, why is this a cause? Again, do this for several iterations to arrive at the root causes. D. To check the accuracy or appropriateness of the causes, be sure to map them onto the defined LEGAL/ETHICAL CHALLENGE Is Hiring Candidates with Criminal Records Wise or Risky? Let’s start with some perspective: 33 percent. That is the proportion of working-age Americans with a crimi- nal record.167 Each year approximately 650,000 peo- ple are released from prison,168 which is about the same as the population of Memphis, TN, or Portland, OR. All of their offenses are not equal of course, but before hastily deciding whether you would hire some- body with a record or not it helps to consider just how many people have this label. Many hiring managers and companies have knee- jerk reactions to exclude such candidates, as reflected on many applications with the infamous box, “Have you ever been convicted of a crime? Yes or No.” When job markets are flush with candidates, excluding these can- didates may not be such a problem. However, when the job market is hot and labor is tight, many compa- nies across industries might think differently. And of course, some companies, industries, and geographies are confronted with seemingly eternal talent shortages regardless of the economy. This means such exclusion- ary policies may shrink an already small talent pool. Putting the economy and labor market aside, indi- viduals and companies excluding those with records typically do so on the grounds of limiting their liability and/or ensuring employee and customer safety. On the other side of this argument are those who feel peo- ple should be given a second chance: they’ve paid their debt to society. Research done by the Society of Human Resource Management found the three top reasons reported for hiring candidates with criminal records were: (1) desire to hire the best available can- didate, (2) give workers a second chance, and (3) improve the community.169 Many have argued it is unfair for criminals to be for- ever handicapped in the job market because of a past offense. This has led many states and cities to “ban the box” and require companies to wait until a hiring decision has been made before doing a criminal record check. On the other side of this argument is that waiting until late in the hiring process costs companies and individuals time and money, and therefore they should be allowed to gather and consider that information at the beginning.170 What Would You Do? What would you do regarding candidates with criminal records if you owned your company? 1. Would you use the “box” to identify and exclude candidates with records if the law allows it in your city and state? Justify your decision. 2. How would you justify the decision to not use criminal records in the hiring criteria. Justify your decision. 3. Would you take a middle-ground position and use criminal records in some way or to some extent? Explain how and why. 4. Invent other options. Organizational Behavior: A Practical, Problem-Solving Approach Groups PART TWO Jan Havlicek/Johny87/123RF Organizational Behavior: A Practical, Problem-Solving Approach LO 8-1 Describe the key characteristics of groups and differentiate them from those of teams. LO 8-2 Explain the group development process. LO 8-3 Apply your knowledge of teams to increase your value as an employee and a team player. LO 8-4 Build and repair trust. LO 8-5 Illustrate your ability to foster team effectiveness. LO 8-6 Describe the implications of groups and teams for you and managers. After reading this chapter, you should be able to: Groups and Teams8 Figure 8.1 summarizes what you will learn in this chapter. The main focus is on groups and teams and the associated processes within the Organizing Framework. You’ll see that group and team dynamics affect outcomes across all levels of OB. For instance, groups and teams powerfully affect the individual-level outcomes of their members, for instance, task performance, work attitudes, turnover, flourishing, and creativity. Groups and teams similarly affect their own collective outcomes, such as group/team performance, group satisfaction, and group cohesion and conflict. Finally, because many organizations consist of teams, they also affect organization- level outcomes like financial performance, organizational performance, customer satisfaction, and innovation. Ja n H av lic ek /J oh ny 87 /1 23 RF Organizational Behavior: A Practical, Problem-Solving Approach 297Groups and Teams CHAPTER 8 INPUTS PROCESSES OUTCOMES Person Factors Situation Factors Individual Level Group/Team Level • Group/team dynamics Organizational Level Individual Level • Task performance • Work attitudes • Turnover • Career outcomes • Creativity Group/Team Level • Group/team performance • Group satisfaction • Group cohesion and conflict Organizational Level • Accounting/financial performance • Customer satisfaction • Innovation ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. FIGURE 8.1 Organizing Framework for Understanding and Applying OB In addition to being responsible for important outcomes, like rescuing the injured or even saving their lives, military medical teams illustrate most, if not all, of the team concepts covered in this chapter. For instance, they serve both organizational and individual functions, complete complex tasks that individuals acting alone cannot, and confirm individual team members’ self-esteem and sense of identity. The members of military medical teams fulfill various task and maintenance roles essential to effective team dynamics and function- ing, such as information seeker and encourager. Fundamental to all of this are the teamwork competencies of the team members—possessing and applying their relevant knowledge and skills in constructive ways for the benefit of the soldiers they save and the overall team. Source: Sgt. Daniel Schroeder/U.S. Army Organizational Behavior: A Practical, Problem-Solving Approach 298 Winning at Work How to Charter Your Way to Success in Teams What’s Ahead in This Chapter We begin Part Two of this book with a discussion of groups and teams. Your performance at work and school improves when you understand the differences between formal and informal groups, because the two have different functions, roles, norms, and dynamics. Next, we describe the group and team development process, and we’ll differentiate groups from teams and explore important team concepts, such as different types of teams and the nature of their interdependence. A number of key team characteristics also are explored, including team competencies and teamwork. The value of trust is covered next, because trust is a critical ele- ment for group and team functioning. We close by exploring facilitators for team effectiveness—common purpose, composition, collaboration, and rewards. task becomes even more useful if each member’s team-re- lated strengths and responsibilities are included as well. 4. Boundaries: Boundaries identify the values, such as timely and quality work, to which team members will commit. Many effective teams also describe the legitimate activities of the team, which are details about what the team will and will not do and what members will and will not do in the name of the team. It is also important to agree to and de- scribe the key stakeholders affected by the team’s activi- ties. This clarifies whom the team does and does not serve. 5. Operating guidelines: Describe the team structure and processes, including how leadership and other roles will function, how decisions will be made, how work will be allocated, and how members will communicate with each other and with those outside the team. It can be very helpful to describe how conflict will be managed, insofar as processes and consequences. 6. Performance norms and consequences: Team researchers have shown that effective teams often outline the perfor- mance expectations, including: how team and member per- formance will be assessed; how members are expected to interact with each other; how dysfunctional behaviors will be managed; how team members will be disciplined for not ad- hering to team norms; the process for terminating a member from the team; expectations for team meetings; expecta- tions for member contributions to team projects; conse- quences for work that is late or of poor quality; how tasks for team projects will be allocated to individual team members.5 7. Charter endorsement: Every team member should sign an endorsement signifying commitment to the elements of the charter. When working in teams, most students and employees sim- ply dive in and tackle the task at hand. Although this works sometimes, many times it doesn’t. There are a variety of rea- sons teams underperform and you will learn about many in this chapter. Some of the most fundamental causes are a lack of alignment on what needs to be done, how it needs to be done, and by whom. One way to help overcome these challenges is to create a team charter, which is a document detailing members’ mutual expectations about how the team will operate, allocate resources, resolve conflict, and meet its commitments.1 Creating the charter may include identifying member strengths, setting goals, agreeing on processes for communication and decision making, and deciding how to measure and use contributions from mem- bers. The process of creating a charter gives the team an opportunity to consider the capabilities of its members along with important contextual factors that can either help or hin- der the team’s efforts.2 Experts recommend including the following elements:3 1. Mission statement: Like organization mission statements (Chapter 16), team charter mission statements describe why a team exists—its overarching purpose. Be careful not to describe this mission in terms of a goal, for example, “get a good grade.” Missions focus on and articulate a higher purpose. For example, the American Humane Society’s is: “Celebrating animals, confronting cruelty.” This statement tells people why the organization exists, not how it achieves this mission. 2. Team vision: Vision statements are forward-looking and describe what the team looks like when functioning at its best. A vision has more detail than a mission statement and describes how its actions and deliverables (products and services) affect specific outcomes and stakeholders, like other team members, customers, professors, other students and coworkers, and suppliers. The Humane So- ciety’s team mission is “to promote the human-animal bond, protect street animals, advance farm animal wel- fare, stop wildlife abuse, curtail and eliminate painful ani- mal testing, respond to natural disasters and confront animal cruelty in all its forms.”4 3. Team identity: It helps to create a team name and perhaps a logo to help signify membership. These can serve as impor- tant ways for team members to connect to the team and to distinguish the team and its members from other individuals and teams. Think of the names and mascots of sports teams and the functions they serve. It can be helpful to use the same elements in your own teams at school and work. Team rosters including each member’s name, e-mail address, phone number, and schedule can assist in making commu- nication and planning teamwork much more efficient. This Organizational Behavior: A Practical, Problem-Solving Approach 299Groups and Teams CHAPTER 8 Most fundamentally, we use groups and teams at work because the complexity and demands are simply too great to be managed by individuals.6 Although we’ll address teams separately later in the chapter, it is easiest and best if we define and differentiate groups and teams upfront. It will eliminate the suspense, head off some obvious questions, prevent you from looking ahead for the answer, and keep you focused on groups for the moment. Groups and teams can be described using three characteristics:7 1. Dependence is the extent to which one member’s tasks and responsibilities are linked to those of other members. 2. Accountability involves who is responsible for the tasks and related outcomes. 3. Time is the duration members spend to together completing tasks and responsibilities. Using these characteristics, groups and teams are differentiated in Table 8.1. Drawing on Table 8.1, we define groups as collections of two or more individuals with low or no task dependency, who are not accountable to each other for their work, and who may or may not assemble for a specified period of time. Teams are collections of two or more individuals whose tasks and responsibilities depend on the other members, are col- lectively accountable for the performance and outcomes associated with their work, and work together for the time required for task completion. To add more clarity, let’s use as an example an airplane’s passengers and crew.9 Pas- sengers are a group and the crew are a team. Despite being on the same flight, passengers have a variety of goals and reasons for flying. Your reasons are more often than not inde- pendent of my reasons. The crew of the plane, however, is a team as their tasks and 8.1 GROUP CHARACTERISTICS THE BIGGER PICTURE Groups are different from teams, can be formal or informal, and serve multiple functions. Group roles and norms are the means by which expectations are communicated to groups and their members, and they are powerful forms of social control influencing group and mem- ber behavior. They may also influence several important outcomes across the levels in the Organizing Framework. Describe the key characteristics of groups and differentiate them from those of teams. LO 8-1 TABLE 8.1 Three Characteristics for Describing and Differentiating Groups and Teams.8 DIFFERENTIATING CHARACTERISTICS GROUPS TEAMS Task Dependency Independent. Members’ tasks and responsibilities are independent from each other. Interdependent. Members’ tasks and responsibilities are interdependent. Accountability Individual. Performance and other outcomes are the responsibilities of individual members. Shared. Performance and other outcomes are shared responsibilities among members. Time Together Unspecified. May be unspecified as most often not linked to a specific task or goal. Specific. Generally, for a specific amount of time required to complete a task or goal. SOURCE: Nemeth, Bianka. “Group vs team: What’s the difference?” Session Lab, January 13, 2018. https://www.sessionlab.com/blog/working-with-groups-and-teams/. Organizational Behavior: A Practical, Problem-Solving Approach 300 PART 2 Groups responsibilities are linked or interdependent. If a pilot or flight attendant doesn’t show up for a flight, then other members of the crew are affected and unable to do their jobs, either appropriately or at all. Passengers are only accountable for their own actions. If you miss your flight, then it is only you who is accountable for your actions and must pay for the consequences. Crew members, in contrast, are accountable for each other as noted above. Pilots can’t do their jobs without the flight attendants and vice versa. If one attendant doesn’t meet his respon- sibilities, then another needs to pick up the slack (shared accountability). Once the flight lands passengers may connect to other flights and continue their trav- els, or not. Either way it has nothing to do with the other passengers. As for the crew, they delivered the passengers from city A to city B, a common goal, and their job is done. Groups are commonly further differentiated in terms of formal and informal, which you’ll learn about next. Formal and Informal Groups Individuals join or are assigned to groups for various purposes. A formal group is assigned by an organization or its managers to accomplish specific goals. Such groups often have labels: work group, team, committee, or task force. An informal group exists when the members’ overriding purpose in getting together is friendship or a common interest.10 Formal and informal groups often overlap, for instance, when a team of analysts play tennis after work. Functions of Informal Groups Informal groups often form around particular inter- ests or causes and typically do not have goals or objectives. This is not surprising as they operate without formal rules or authority, and members generally come and go as they please. Nearly all of your social media groups (people and causes you follow) are examples of informal groups. The 120 million-plus people who follow Cristiano Ronaldo on Insta- gram constitute an informal group, as do the 100 million that follow Dwayne Johnson and another 100 million for Beyoncé.11 A particularly valuable and increasingly common informal group is former employees, or what companies variously call comeback colleagues, boomerang employees, or simply alumni. When treated well former employees can be extremely valuable, providing quality job candidate referrals, partnering opportunities, and rehires. Some companies have truly seized such opportunities. Sedexo, the food service company, has 9,000 management-level former employees registered in its alumni network. And this group is the source of approx- imately 20 percent of the hires it makes each year!12 Deloitte, an early adopter who launched its alumni program in 2000, has hundreds of thousands of former employees in its alumni group, from which it made 2,800 hires in 2017. This makes perfect sense—former employees know the culture, know the work, and ramp up very quickly.13 Functions of Formal Groups Formal groups fulfill two basic functions: organiza- tional and individual (see Table 8.2). Complex combinations of these functions can be found in formal groups at any given time. Next, let’s learn about roles and norms, two of the most powerful influences on indi- vidual behavior in groups. Roles and Norms: The Social Building Blocks of Group and Organizational Behavior Groups transform individuals into functioning organizational members through subtle yet powerful social forces. These social forces, in effect, turn “I” into “we” and “me” into “us.” Group influence weaves individuals into the organization’s social fabric by communicating and enforcing both role expectations and norms. That is, group members positively Organizational Behavior: A Practical, Problem-Solving Approach 301Groups and Teams CHAPTER 8 reinforce those who adhere to roles and norms with friendship and acceptance. Noncon- formists, in contrast, experience criticism and even ostracism or rejection by group mem- bers. Anyone who has experienced the “silent treatment” from a group of friends knows what a potent social weapon ostracism can be. Let’s look at how roles and norms develop and why they are enforced. What Are Roles and Why Do They Matter? A role is a set of expected behav- iors for a particular position, and a group role is a set of shared expected behaviors for members of the group as a whole. Each role you play is defined in part by the expec- tations of that role.14 In the role of student, you are expected to be motivated to learn, conscientious, participative, and attentive. Professors are expected to be knowledgeable, prepared, and genuinely interested in student learning. Sociologists view roles and their associated expectations as a fundamental basis of human interaction and experience. Two types of roles are particularly important—task and maintenance. Effective groups ensure that both are being fulfilled (see Table 8.3). Task roles enable the work group to define, clarify, and pursue a common purpose; and maintenance roles foster sup- portive and constructive interpersonal relationships. Task roles keep the group on track, while maintenance roles keep the group together. Members can play more than one role at a time, or over time. To illustrate, think of a team for one of your classes, perhaps a team case analysis. When the team meets and a member clarifies the deliverables for the assignment, that person is playing a task role (information seeker/giver in Table 8.3). If another member solicits input from all other members, to ensure their voices are heard, then this person is playing a maintenance role (gatekeeper in Table 8.3). The group’s leader or any of its mem- bers can play any of the task and maintenance roles in combination or in sequence. The task and maintenance roles listed in Table 8.3 can serve as a handy checklist for managers and group leaders who wish to ensure group development (discussed in the next section of this chapter) and effectiveness (the last section of this chapter). Learn about your own group role preferences by completing Self-Assessment 8.1. This knowledge can help you understand why you might have been more or less satisfied with a particular group or team of which you’ve been a member. Playing roles that don’t match your preferences is likely to be less satisfying. Furthermore, understanding your own pref- erences will enable you to set yourself up to be happy and productive in future groups, because you can volunteer for or position yourself to play the roles you prefer. TABLE 8.2 Formal Groups Fulfill Organizational and Individual Functions ORGANIZATIONAL FUNCTIONS INDIVIDUAL FUNCTIONS 1. Accomplish complex, interdependent tasks that are beyond the capabilities of individuals. 1. Satisfy the individual’s need for affiliation. 2. Generate new ideas and solutions. 2. Develop, enhance, and confirm the individual’s self-esteem and sense of identity. 3. Coordinate inter-departmental and inter- organizational efforts. 3. Give individuals an opportunity to test and share their perceptions of (social) reality. 4. Provide a problem-solving mechanism for complex problems requiring varied information and assessments. 4. Reduce the individual’s anxieties and feelings of insecurity and powerlessness. 5. Implement complex decisions. 5. Provide a problem-solving mechanism for personal and interpersonal problems. 6. Socialize and train newcomers. SOURCE: Schein, Edgar H. Organizational Psychology. New Jersey: Prentice-Hall, 1988. Organizational Behavior: A Practical, Problem-Solving Approach 302 PART 2 Groups TABLE 8.3 Task and Maintenance Roles15 TASK ROLES DESCRIPTION Initiator Suggests new goals or ideas Information seeker/giver Clarifies key issues Opinion seeker/giver Clarifies pertinent values Elaborator Promotes greater understanding through examples or exploration of implications Coordinator Pulls together ideas and suggestions Orienter Keeps group headed toward its stated goal(s) Evaluator Tests group’s accomplishments with various criteria such as logic and practicality Energizer Prods group to move along or to accomplish more Procedural technician Performs routine duties (handing out materials or rearranging seats) Recorder Performs a “group memory” function by documenting discussion and outcomes MAINTENANCE ROLES DESCRIPTION Encourager Fosters group solidarity by accepting and praising various points of view Harmonizer Mediates conflict through reconciliation or humor Compromiser Helps resolve conflict by meeting others halfway Gatekeeper Encourages all group members to participate Standard setter Evaluates the quality of group processes Commentator Records and comments on group processes/dynamics Follower Serves as a passive audience Group and Team Role Preference Scale Please be prepared to answer these questions if your instructor has assigned Self- Assessment 8.1 in Connect. 1. Does your preferred role (the one with the highest score) match your percep- tions? Justify your answer using examples of your behavior. 2. Given your preferred role, how can you be most effective in group assignments? What challenges might playing your preferred role cause for you? For your group? 3. Describe how playing your least preferred role (the one with the lowest score) has been problematic for you and one of your teams. Explain two ways you could improve your performance and that of your team by working on this deficiency. SELF-ASSESSMENT 8.1 SOURCE: Porteus, Ann. “Roles People Play in Groups.” Stanford University. Accessed April 4, 2019. https://web.stanford.edu/ group/resed/resed/staffresources/RM/training/grouproles.html Organizational Behavior: A Practical, Problem-Solving Approach 303Groups and Teams CHAPTER 8 What Are Norms and Why Do They Matter? Norms are shared attitudes, opin- ions, feelings, or behaviors that guide individual and group behavior. Norms are more encompassing than roles, which tend to be at the individual level in the Organizing Framework and pertain to a specific job or situation. Norms are shared and apply to the group, team, or organization. They help create order and allow groups to function more efficiently because they save groups from having to figure out how to do the same things each time they meet. Norms also help groups move through the development process you’ll learn about in the following section. Although norms are typically unwritten and are seldom discussed openly, they have a powerful influence on group and organizational behavior. Like organizational culture, individual members and group behavior are guided in part by shared expectations and norms. For example, the 3M Co. has a norm whereby employees devote 15 percent of their time to thinking big, pursuing new ideas, or further developing something spawned from their other work. The “15 percent time” program, as it is called, was started in 1948 and supports the culture of innovation for which 3M is known. Terry Ceulemans, 3M’s Global Director for Automotive and Aerospace Solutions, views this practice as the company investing 15 percent of its labor costs into innovation, and the returns have been enor- mous. Products like Post-It Notes, reflective traffic lights, and Scotchguard might have never been invented otherwise.16 Although Google has abandoned its 20% practice, Gmail, AdSense, and Google Talk were all attributed to projects employees developed during this time.17 Twitter and others who do hack-a-thons provide other successful examples. Researchers and others have utilized “blue sky” time with great success, such as Andre Geim and Konstantin Novoselov, who won the Nobel Prize in physics with experiments they did on Friday (on their “own time”). The idea is simply to be disciplined and be sure to allocate time to think freely, pursue pet projects, or explore other ideas.18 Norms serve many purposes and are thus reinforced by the group. Some of these rea- sons are listed in Table 8.4. Norms can emerge on their own over time. For instance, think of the group of friends you socialized with on Friday night. What were some of the norms of behavior? Were these norms the result of discussion and explicit agreement? That’s highly unlikely. They just happened. In contrast, norms can also be purposefully created, which is what we advocate. Why leave things to chance when you can directly influence them for the better? The World Health Organization (WHO) sets norms, as described in the OB In Action box related to the Safe Surgery Checklist. Although the 19 items are an actual written list, they typically are not formally required, which would make them rules. TABLE 8.4 Why Norms Are Reinforced NORM REASON EXAMPLE OF REINFORCEMENT “Make our department look good in top management’s eyes.” Group/organization survival A staff specialist vigorously defends the vital role of her department at a divisional meeting and is later complimented by her boss. “Work hard and don’t make waves.” Clarification of behavioral expectations A senior manager takes a young associate aside and cautions him to be a bit more patient with coworkers who see things differently. “Be a team player, not a star.” Avoidance of embarrassment A project team member is ridiculed by her peers for dominating the discussion during a progress report to top management. “Make customer service our top priority.” Clarification of central values Two sales representatives are given a surprise Friday afternoon party for winning best-in-the- industry customer service awards from an industry association. Organizational Behavior: A Practical, Problem-Solving Approach 304 PART 2 Groups Finally, another way to think about roles and norms is as peer pressure. Peer pressure is about expectations, and we all know how effective or problematic expectations can be. At its root, peer pressure is simply the influence of the group on the individual, and the expectations of associated roles and norms are the means of this influence. The mission of the World Health Organization (WHO) is to improve health for people around the world, including improving surgical outcomes. This mission is reflected in the Safe Surgery Checklist which out- lines three stages of surgery and the important tasks associated with each. The aim is to reduce the most common and avoidable surgical risks. To do this, the checklist recommends that a surgery coordinator (a specific task role) be assigned to ensure that each task is complete before the surgical team moves to the next stage.19 Stage 1—(Sign In) Before Administering Anesthesia: Confirm patient identity, site, procedure, and consent; mark the site of the surgery; perform anesthesia safety check; turn pulse oximeter on. Stage 2—(Time Out) Before Incision: Confirm all team members have introduced themselves by name and role; surgeon, anesthesiologist, and nurse confirm patient, procedure, and site; surgeon reviews critical steps and potential challenges; anes- thesiologist checks for potential problems; nursing team reviews that all equipment and personnel are in place. Confirm appropriate medications have been administered. Stage 3—(Sign Out) Before Patient Leaves Operat- ing Room: Nurse verbally confirms with the team— name of procedure has been recorded; instrument, sponge, and needle counts are correct; specimen is labeled and includes patient’s name; surgeon, anes- thesiologist, and nurse review post-op concerns, medications, and pain management. The list was created by a broad interdisciplinary team of surgeons, gynecologists, anesthetists, nurses, infection control experts, public health per- sonnel, patient advocates, and biomedical engi- neers. Central to the Safe Surgery Checklist’s development and implementation is teamwork. The intention is to improve surgical outcomes by embed- ding norms related to communication and teamwork, regardless of the location of a clinic or available resources, such as technology and clinical training.20 Results have been impressive with studies reporting a 47 percent reduction in mortality and a 36 percent reduction in complications.21 However, other research has shown consistent and effective implementation varies dramatically, depending on individual, procedural, and contextual factors. Those that helped facilitate effective use were well- informed specialists, supporters for use of the list, along with teams who are genuinely focused on the intended benefits and content of the list.22 YOUR THOUGHTS? 1. Think of an effective team of which you are or have been a member. What are some of the norms to which you would attribute the team’s effectiveness? 2. Now think of a team that is ineffective. What norms do you think contribute to its lower performance? 3. Now think of a team you belong to currently. What are two norms you feel would improve its effectiveness? Improve Team Norms to Improve Surgical Outcomes OB in Action Organizational Behavior: A Practical, Problem-Solving Approach 305Groups and Teams CHAPTER 8 THE BIGGER PICTURE You’ll find working in groups and teams much easier when you recognize that they often fol- low a development process. One such process has five stages, and the other is called punctu- ated equilibrium. We explore both and help you understand the problems and benefits common to groups and teams as they evolve. Your application of this knowledge will enable you to more effectively manage individual- and group-level outcomes in the Organizing Framework and perform more successfully in work and school groups. 8.2 THE GROUP DEVELOPMENT PROCESS At work and school groups and teams go through a development process. Sometimes this development is like the life cycle of products in marketing or like human development in biology. That is, it consists of stages of a specific number, sequence, length, and nature. Other kinds of groups form, progress in a stable manner for a while, but then respond to an event by radically changing their approach.23 We discuss both development processes, beginning with the most popular—Tuckman’s five-stage model (see Figure 8.2). Explain the group development process. LO 8-2 FIGURE 8.2 Tuckman’s Five-Stage Model of Group Development Te am E � ec tiv en es s Adjourning Independence Dependence/ Interdependence Return to Independence Performing Norming Storming Forming Individual issues “How do I fit in?” “What’s my role here?” “What do the others expect me to do?” “How can I best perform my role?” “What’s next?” Group Issues “Why are we here?” “Why are we fighting over who is in charge and who does what?” “Can we agree on roles and work as a team?” “Can we do the job properly?” “Can we help members transition out?” Time Organizational Behavior: A Practical, Problem-Solving Approach 306 PART 2 Groups Tuckman’s Five-Stage Model of Group Development Tuckman’s five-stage model of group development—forming, storming, norming, perform- ing, adjourning—has great practical appeal because it is easy to remember and apply.24 Notice in the top part of Figure 8.2 how individuals give up an increasing amount of their independence as a group develops. The lower box in the figure also describes some of the issues faced by individual members and the larger group as it develops. The five stages are not necessarily of the same duration or intensity. For instance, the storming stage may be practically nonexistent or painfully long, depending on the goal clarity, commitment, and maturity of the members. Stage 1: Forming During the ice-breaking forming stage, group members tend to be uncertain and anxious about the unknowns such as their roles, the people in charge, and the group’s goals. Mutual trust is low, and there is a good deal of holding back to see who takes charge and how. Some research shows that conflict among group members is actually beneficial during this stage. For instance, early conflict in product development teams can boost creativity.25 However, the results can also be quite different. For example, in the life-and-death situa- tions sometimes faced by surgical teams and airline cockpit crews, the uncertainty inher- ent in the early stages of development (forming and storming) can be dangerous. Stage 2: Storming The storming stage is a time of testing. Individuals test the leader’s policies and assumptions as they try to decide how they fit into the power structure. Sub- groups may form and resist the current direction of a leader or another subgroup. In fact, some management experts say the reason many new CEOs don’t survive is they never get beyond the storming stage. Yet still other executive changes are made because the board feels things need to be stirred up, as was the case at Volkswagen in 2018 when it inserted Herbert Diess as the new CEO. The infamous “defeat device” and emissions scandal continues to haunt VW, and as a result several executives have been ousted. Diess came to VW from BMW after the scandal broke, thus he is not ensnared in the mess. This will make developing his teams both easier and more difficult.26 On the one hand, he needs to make sig- nificant changes, clean up the mess, and get the company back on track. Presum- ably the changes he’ll initiate will involve considerable storming to improve pro- cesses and products, as well as to ensure the company stays on a scandal-free path. On the other hand, because he is not a long-time insider, he doesn’t know the culture and how things work at VW. This could make norming and performing slower and more difficult. Stage 3: Norming Groups that make it through Stage 2 generally do so because a respected member, other than the leader, challenges the group to resolve its power struggles so work can be accomplished. Questions about authority and power are best resolved through unemotional, matter-of-fact group discussion, and soft influence tactics (Chapter 12). A feeling of team spirit is some- times experienced during this stage because members believe they have found their proper roles. Group cohesiveness, the degree to which members feel part of the collective or “we” of the group,27 is the principal by-product of Stage 3. The Applying OB box describes some practical tips for cultivating cohesiveness. As CEO of VW, Herbert Diess has both the benefit and handicap of coming from outside the company. He benefits from not being entrenched in many of the norms and culture to which the emissions scandal is attributed, but he also lacks the knowledge of how to get things done effectively within the company. Odd Andersen/AFP/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 307Groups and Teams CHAPTER 8 Applying OB 3. Share and welcome. It’s one thing to offer your insights, talents, and experiences for the benefit of the team, but it is equally important, regardless of your role, to welcome, expect, and facilitate the same from others. You don’t have all the answers or the best Ideas, so be aware and don’t act as though you do. 4. Disagree respectfully. Disagreements are expected and can be functional and desirable, as you’ll learn In Chapter 10. However, few things undermine cohesiveness faster than disrespectful language and behaviors. Model it and don’t toler- ate it. 5. Eat, play, love. You don’t have to love each other to have a cohesive, high-performing group, but engaging in social activities together can break down barriers and loosen people up, enabling them to reveal more about themselves and be more vulnerable. This may lead to greater cohe- siveness within the group at work or school. There are other ways to cultivate cohesiveness, but give some of these a try with a team from one of your classes and make note of the benefits. Cohesiveness can greatly improve the functioning of groups and teams, and it thus is important to your success as a team member and team leader. Founda- tional to group cohesion are trust and cooperation, topics you’ll learn about in different places in this chapter. But here, several members of the Forbes Coaches Council shared advice from their own expe- riences to help you. 1. Clarify commitments. Individual and collective roles and responsibilities must be determined, communicated, measured, and reinforced. Accountability is key, as team members not follow- ing through or delivering as they are expected to build resentment and erode cohesiveness. 2. Give trust to get trust. Most team members understand the importance of trust, and leaders commonly emphasize this point. However, before expecting and lecturing others on trust you should assess how trusting you’ve been. Have you allowed others to take on important responsibilities and do their part without your oversight? How to Cultivate Cohesiveness and Success28 Stage 4: Performing Activity during this vital stage is focused on solving task prob- lems, as contributors get their work done without hampering others. This stage is charac- terized by a climate of open communication, strong cooperation, and lots of helping behavior. Conflicts and job boundary disputes are handled constructively and efficiently. Cohesiveness and personal commitment to group goals help the group achieve more than could any one individual acting alone. Stage 5: Adjourning The group’s work is done; it is time to move on to other things. The return to independence can be eased by rituals such as parties or award ceremonies celebrating the end and new beginnings. During the adjourning stage, leaders must empha- size valuable lessons learned. Punctuated Equilibrium In contrast to the discrete stages of Tuckman’s model, some groups follow a form of devel- opment called punctuated equilibrium, as groups establish periods of stable func- tioning until an event causes a dramatic change in norms, roles, and/or objectives; the group then establishes and maintains new norms of functioning, returning to equilibrium (see Figure 8.3). Extreme examples of punctuated equilibrium often occur because of disruptive technologies, like Apple’s introduction of iTunes. This innovation Organizational Behavior: A Practical, Problem-Solving Approach 308 PART 2 Groups Time Abrupt change C ha ng e Abrupt change FIGURE 8.3 Punctuated Equilibrium caused all players in the music industry to radically change their approaches from digital to streaming and from purchasing entire albums to buying individual songs and subscrip- tions. Something similar happened when Netflix started renting out DVDs through the mail, then streaming, and now they are the global streaming colossus.29 In such scenarios, companies and teams that adapt will realize tremendous new opportunities, but those that don’t often find themselves obsolete and go out of business. This phenomenon plays out at all levels of OB, such that punctuated equilibrium at the organizational level drives significant change, development, and opportunity at the group and individual levels too. Many careers have been extinguished and others ignited due to punctuated equilibrium. Apply your new knowledge of OB to be sure yours is one that benefits. Although much of what you have learned thus far also applies to teams, they have important differences and unique characteristics that we’ll explore next. Organizational Behavior: A Practical, Problem-Solving Approach 309Groups and Teams CHAPTER 8 THE BIGGER PICTURE When you better understand the difference between groups and teams, you’ll be well equipped to perform better in both. You’ll find practical tips in our discussion of critical team- work competencies, along with a description of various types of teams. This section con- cludes with a discussion of team interdependence, a characteristic that is fundamental to the functioning of teams. 8.3 TEAMS AND THE POWER OF COMMON PURPOSE Apply your knowledge of teams to increase your value as an employee and team player. LO 8-3As noted previously, teams are a collection of individuals whose tasks and responsibili- ties depend on the other members, are collectively accountable for the performance and outcomes associated with their work, and who work together for the time required for task completion or to fulfill their responsibilities. To further your understanding of the differences between groups and teams, Self-Assessment 8.2 guides you through a simple way of determining the maturity level of a past or present team of which you were or are a member. Is This a Mature Work Group or a Team? Please be prepared to answer these questions if your instructor has assigned Self-Assessment 8.2 in Connect. 1. Does your evaluation help explain why the group or team was successful or not? Explain. 2. Was (or is) there anything you could have done (or can do) to increase the maturity of this group? Explain. 3. How will this evaluation help you be a more effective group member or leader in the future? SELF-ASSESSMENT 8.2 Besides being a central component of the Organizing Framework, teams are a corner- stone of work life. This means practically all employees need to develop skills related to being good team players and building effective teams. It also means that in today’s team- focused work environment, organizations need leaders who are adept at teamwork them- selves and can cultivate the level of trust necessary to foster constructive teamwork.30 To help you be more effective in the team context, let’s begin by exploring what it means to be a team player. But before doing this, read the OB in Action box which describes how switching to teamwork has been essential to T-Mobile’s success and competitiveness. Team Players versus Free-Riders Teams collaborate and perform most effectively when companies develop and encour- age teamwork competencies. Five common teamwork competencies are outlined in Organizational Behavior: A Practical, Problem-Solving Approach 310 PART 2 Groups Common Scenario and Common Outcomes When many people think of call centers, they envision hordes of customer service representatives, slouch- ing in front of screens, headsets on, semi-frantically mowing through customer calls in attempts to meet “handle time” (time spent with each caller) expectations. Most of these same people have a much clearer and even more unappealing view of what it’s like to be a customer of one of these representatives. One writer described the customer experience this way: “They are forced to navigate computerized call trees and, should they get a live person, they’re often treated robotically and handed from one agent or department to another if their issue is outside a rep’s narrow repertoire.” Combined, it is no wonder turnover for such employees exceeds that of almost every type of job, and customers are frequently frustrated and reluctant to even bother calling. The T-Mobile Scenario The above quite accurately described T-Mobile’s call centers with groups of reps toiling in less than inspiring conditions and delivering less than satisfying service. Then things changed. Reps are now organized into teams who gather in shared spaces (pods) and collaboratively solve cus- tomer issues as they see fit. More interesting still is the customers they serve are organized into pools for which particular teams are responsible. Different Approach, Different Metrics Instead of being preoccupied with handle times per call, the teams are problem solvers and responsible for how best to improve customer retention, loyalty, and share of wallet (how much of a customer’s total tele- com budget goes to T-Mobile). As for customers, they know how to communicate with their appropri- ate team and do not suffer through call trees. Impressive Outcomes The results have been impressive. In just three years, the new team approach cut costs to serve customers 13 percent, boosted customer loyalty measures by 50 percent, and reduced customer churn to all-time lows for the company. Better still, employee satisfaction is up, and absenteeism and turnover are down. Motives for the Changes Like many other Industries and services, T-Mobile customers and their needs have evolved. Billing, address changes, and plan mod- ifications can often be handled by customers them- selves (self-serve online). This means customers now call and need direct service for more complex issues, and more complex issues require a more sophisti- cated and cooperative approach to service. YOUR THOUGHTS? 1. Differentiate T-Mobile’s previous group-based to its new team-based approach to customer service. 2. How would you contrast management chal- lenges in the group- versus team-based approaches at T-Mobile? 3. What do you think are the key challenges for employees in the team approach? At T-Mobile Groups Lose, But Teams Thrive!31 OB in Action Table 8.5, along with examples of behaviors to assist in recognition and measurement. Notice that all these competencies are action-oriented, which means being a team player is more than a state of mind: It’s about doing! Evaluating Teamwork Competencies There are at least two ways to use Table 8.5 and your knowledge of teamwork competencies. The first is as tools to enhance your self- awareness. Do you behave in these ways on your teams? The second is as a means to mea- sure your performance and that of other members of your team. Many of your business courses require team assignments and some may also require peer evaluations. Complete Self-Assessment 8.3 to learn about your own teamwork compe- tencies and/or to evaluate the performance of the members of one of your teams at school (for a class, sport, club, or fraternity/sorority). Knowledge of your teamwork competencies can help determine which competencies are your strongest and those that are opportunities for improvement. You can choose to play to your strengths and/or develop your deficiencies. Organizational Behavior: A Practical, Problem-Solving Approach 311Groups and Teams CHAPTER 8 TABLE 8.5 Common Teamwork Competencies COMPETENCY EXAMPLES OF MEMBER BEHAVIORS 1. Contributes to the team’s work • Completed work in a timely manner • Came to meetings prepared • Did complete and accurate work 2. Constructively interacts with team members • Communicated effectively • Listened to teammates • Accepted feedback 3. Keeps team on track • Helped team plan and organize work • Stayed aware of team members’ progress • Provided constructive feedback 4. Expects high-quality work • Expected team to succeed • Cared that the team produced high-quality work 5. Possesses relevant knowledge, skills, and abilities (KSAs) for team’s responsibilities • Possessed necessary KSAs to contribute meaningfully to the team • Applied knowledge and skill to fill in as needed for other members’ roles Evaluate Your Team Member Effectiveness Please be prepared to answer these questions if your instructor has assigned Self-Assessment 8.3 in Connect. 1. Which competencies are your strongest (have the highest average scores)? 2. Do these scores match your impressions of your teamwork competencies? 3. Which competency is your lowest? Describe two things you can do to further develop and display this competency. 4. Which competency do you feel low performers most often lack in the teams of which you’re a member? 5. Describe the pros and cons of using this tool to do peer evaluations for team assignments in school. Adapted from M. W. Ohland, M. L. Loughry, D. J. Woehr, L. G. Bullard, R. M. Felder, C. J. Finelli, R. A. Layton, H. R. Pomeranz, and D. G. Schmucker, “The Comprehensive Assessment of Team Member Effectiveness: Development of a Behaviorally Anchored Rating Scale for Self- and Peer Evaluation,” Academy of Management Learning & Education, 2012, 609–630. SELF-ASSESSMENT 8.3 What Does It Mean to Be a Team Player? Understanding and exhibiting the com- petencies noted in Table 8.5 is an excellent start on becoming a team player. And while everyone has her or his own ideas of the characteristics that are most important, many people likely include the three Cs of team players: Committed Collaborative Competent32 Think of it this way: The three Cs are the “cover charge” or the bare minimum to be considered a team player. Effective team players don’t just talk about or feel the three Cs—they Organizational Behavior: A Practical, Problem-Solving Approach 312 PART 2 Groups Social loafing, or free-riding, is common in teams, but this can be effectively overcome by applying OB knowledge and tools. Cashiers who served separate lines of customers outperformed those who served customers who waited in groups for the next available cashier. (Left) Robert Daly/Caia Image/Glow Images; (right) MikeDotta/Shutterstock display them. Think of someone on one of your teams who clearly displays the three Cs and someone who does not. How do the differences affect you? The team? While there are many potential reasons some people are not team players, a particu- larly common and problematic one is social loafing. What Is Social Loafing? Social loafing is the tendency for individual effort to decline as group size increases. To illustrate the point, consider a group or team in which you’re a member and ask yourself: “Is group performance less than, equal to, or greater than the sum of its parts?” Can three people working together, for example, accom- plish less than, the same as, or more than they would working separately? All of these outcomes are possible, but the intention is for more and not less than the sum of the parts. Social loafing is a major reason for less, and this is problematic for many reasons. Social loafers produce low-quality work, which causes others to work harder to compensate, and they can also distract or disrupt the work of other team members. Such situations are made worse when loafers expect the same rewards as other members of the team, including those who picked up their slack. As you already know, social loafing is common at school and work. One study observed checkout lines in a supermarket. One area was configured such that each cashier had a dedicated line of customers, and in another area, customers collected in a pool and went to a cashier when one became available. The results? Cashiers in the dedicated lines worked more than 10 percent faster, regardless of the length of their lines. The explanation is they couldn’t rely on (loaf on) other cashiers as in the pooled configuration. The researchers also suspect the dedicated scenario may have spurred a bit of competition too.33 Studies of loafing in college produce useful insights. To begin, researchers in one study assumed that students would loaf in team-based assignments, and they therefore were inter- ested in ways of reducing loafing and boosting performance. They generated project teams in three different ways. The first set of teams was created by matching students whose sched- ules were compatible, and who also indicated they were highly motivated to do the work. The second set of teams were comprised of students with compatible schedules but indi- cated they were not particularly motivated for the work. The final set of teams were allowed to self-select. The results were quite telling. The first set of teams performed the best, on both team and individual assignments, suggesting that pairing students who are motivated and available is the superior way of reducing loafing and increasing learning performance.34 Given that social loafing is so common and problematic, how can you guard against it? 1. Limit group size. Fewer people means fewer places to shift work or hide. 2. Accountability. Ensure members have clear roles and responsibilities, and that they need to deliver. Organizational Behavior: A Practical, Problem-Solving Approach 313Groups and Teams CHAPTER 8 3. Build in feedback. Create a way that team members receive feedback, ideally both dur- ing and at the end, of a project. This will help with accountability and discouraging loafing in the first place, and it will “call them out” if they slack off. 4. Cultivate cohesion. Teams whose members are emotionally bonded are far less likely to loaf.35 Now let’s discuss various types of teams. Understanding the differences can make you a more effective team member and leader. Types of Teams As the world of work becomes more complex, so too do the types of teams. We can dif- ferentiate some common ones by particular characteristics, such as: 1. Purpose of the team. 2. Duration of the team’s existence. 3. Level of member commitment. Work Teams Work teams have a well-defined and common purpose, are more or less permanent, and require complete commitment of their members. Professional sports teams’ top priority is to win games, which they hope will also lead to higher ticket sales and more television viewers. The same teams exist from season to season, and membership is a full-time, all-consuming job for each player. An audit team at work is the same: It is full of auditors who work full time auditing. Project Teams Project teams are assembled to tackle a particular problem, task, or project. Depending on the purpose, their duration can vary from one meeting to many years. For instance, your employer may assemble a team to brainstorm ideas for generating more business with an existing customer. This project team may be limited to only one meeting, whether virtual or face-to-face. Or, the team may be responsible not only for creat- ing ideas for more business with that customer, but also for executing the ideas over the course of one or more years. Members of project teams most often divide their time between the team and their primary jobs and responsibilities. They may be from the same department, product, cus- tomer, or service area in an organization, or possibly from different functional disciplines such as finance, operations, or marketing. As you may have already experienced, any given employee may be a member of multiple project teams at one time. Cross-Functional Teams (CFTs) Cross-functional teams are created with mem- bers from different disciplines within an organization, such as finance, operations, and R&D. Cross-functional teams can be used for any purpose, they can be work or project teams, and they may have a short or indefinite duration. New-product development is an area in which many organizations utilize cross-functional teams. Such teams often contain members with expertise in design, manufacturing, marketing, and sales. Self-Managed Teams (SMTs) Self-managed teams have collective autonomy and responsibility to plan, manage, and execute tasks interdependently to achieve their goals.36 Many of these elements are normally performed by managers, but in self- managed teams, members act as their own supervisors. Self-managed teams have a defined purpose and their duration can vary, along with the level of member commit- ment. Cross-functional, work, and project teams can all be self-managed. SMTs are very common—the vast majority of Fortune 1000 companies have used them for many years and they represent efforts by organizations to be more flexible and meet the demands of increased complexity.37 Instead of needing and waiting on approval from someone at headquarters, which may be in another state or country, SMT members decide and act Organizational Behavior: A Practical, Problem-Solving Approach 314 PART 2 Groups more quickly. Leadership responsibilities often are shared and shift as the demands on and members of self-managed teams change. Outside managers and leaders maintain indi- rect accountability. This contrasts with the hierarchical or centralized types of manage- ment historically found in teams. Self-managed does not mean workers are simply turned loose to do their own thing. Indeed, an organization embracing self-managed teams should be prepared to undergo revolutionary changes in its management philosophy, structure, staffing and training prac- tices, as well as its reward systems. Managers sometimes resist self-managed teams, due to the perceived threat to their authority and job security. Now that you’ve learned about some common team types and their characteristics, we’ll turn our attention to virtual teams. Virtual teams are ever-more common and a criti- cally important type of team with unique characteristics. Virtual Teams Virtual team members work across time, space, and organizational boundaries to achieve common goals. They are connected using various technologies, which enable them to utilize talent more efficiently than in a tradi- tional office setting where work and people are tied to places.38 Advocates say virtual teams are very flexi- ble and efficient because they are driven by information and skills, not by time and location. Nevertheless, virtual teams have pros and cons like every other type of team, which we will address next, along with guidance on how to use them most effectively. Best Uses of Virtual Teams Virtual teams and distributed workers present many potential benefits. One notable benefit is reduced real estate costs (limited or no office space). IBM was an early adopter and calculated it saved over 58 million square feet of office space, amounting to approximately $2 billion in savings.39 Virtual teams enable organizations to leverage diverse knowledge, skills, and experience across geography and time; ability to share knowledge of diverse markets; and reduced commuting and travel expenses. The flex- ibility afforded by virtual teams also can reduce work–life conflicts for employees, which some employers contend makes it easier for them to attract and retain talent.40 Challenges and Recommendations for Virtual Teams Virtual teams have many challenges, too. Recent research identified the five most common, which are described in Table 8.6 along with suggestions on how to overcome them. The solutions included are derived from research done with companies in Fortune’s 100 Best Places to Work over the period of four years. Face Time Researchers and consultants agree about one aspect of virtual teams—there is no substitute for face-to-face contact. Meeting in person is especially beneficial early in virtual team development, and team leaders are encouraged to meet even more frequently with key members.42 Face-to-face interactions can be as simple as lunch, water-cooler con- versations, social events, or periodic meetings. Whatever the case, these interactions enable people to become familiar with each other and build credibility, trust, and under- standing. This reduces misunderstandings and makes subsequent virtual interactions more efficient and effective, and it also increases job performance and reduces conflict and intentions to quit.43 Technology not only allows people to communicate where, when, and with whom they wish, but it also allows people and organizations to work without offices. What are the advantages and disadvantages for you personally of telecommuting and virtual work? Image Source/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 315Groups and Teams CHAPTER 8 TABLE 8.6 Most Common Challenges for Virtual Teams and Recommended Solutions41 CHALLENGE DESCRIPTION RECOMMENDED SOLUTIONS FROM FORTUNE’S 100 BEST COMPANIES Relationships Lack of interpersonal and face-to-face interactions make building trusting relationships difficult. Build trust by modeling candid and respectful communication. Create opportunities for members to meet face-to-face, including nonwork activities. Communication Communicating via technology limits nonverbal and other information com- monly exchange. Feedback is limited and delayed. Create norms of transparency and openness in all communications. Support telecommut- ing, and ensure all members receive the same/sufficient resources (training and technology and support). Decision making Biases and perceived inequities can limit information shared and impair decision making. Train employees on effective distributed decision making, ensure employee voice, and reward efforts and success. Leadership Rich relationships are difficult to build at a distance. Also it’s difficult to monitor per- formance, coach, and share leadership. Make extra efforts to meet, get to know, support team members. Be available, responsive, and role model the behaviors you want and expect. Diversity Differences are difficult to appreciate or overcome, which may affect collabora- tion and understanding of team norms. Initiate and support informal interventions, such as social networks and defense around shared interests. Formal interventions, diversity training and diverse hiring. SOURCE: Eisenberg, Julia, and Aparna Krishnan. “Addressing Virtual Work Challenges: Learning From the Field.” Organization Management Journal 15, no.2 (May 2018): 78–94. https://doi.org/10.1080/15416518.2018.1471976. Team Interdependence One of the most important aspects of teams is interdependence, or the extent to which mem- bers are dependent on each other to accomplish their own work.44 We discuss two common forms of interdependence—task and outcome. Task interdependence is the degree to which team members depend on each other for information, materials, and other resources to complete their job tasks. The degree of task interdependence is determined by the degree of interaction between members and the amount of coordination required among them. There are four basic types of task interdependence, ranked by how much team member interaction and coordination are required. The types are illustrated in Figure 8.4. 1. Pooled. Many pharmaceutical and other sales teams illustrate pooled interdependence. Each member sells a given drug to his or her customers, which requires little or no interaction or coordination with other representatives. At the end of the month all reps’ sales are added together to arrive at a team sales total. 2. Sequential. Manufacturing or assembly processes are typically sequential. PC manu- facturing teams, for example, require that motherboards and hard drives be installed before the box can be closed and fastened. 3. Reciprocal. Hiring processes sometimes use reciprocal interdependence. Candidates are interviewed by members of HR and then separately interviewed by the hiring man- ager or members of the department. The two communicate and decide to whom an offer should be made. 4. Comprehensive. Product development teams often utilize comprehensive interdepen- dence. Online games, for instance, require significant back and forth among those who create the idea, write the code, test, and market the game. It isn’t just a linear or sequential process. Organizational Behavior: A Practical, Problem-Solving Approach 316 PART 2 Groups Outcome interdependence is “the degree to which the outcomes of task work are measured, rewarded, and communicated at the group level so as to emphasize col- lective outputs rather than individual contributions.”45 Outcome interdependence is determined by the extent to which team members’ objectives and rewards are aligned. Practically speaking, the type or degree of interdependence should match what is required for the team to meet its objectives. Now let’s learn about trust, which either facilitates or impedes interpersonal interac- tions and relationships, and thus the effectiveness of teams. FIGURE 8.4 Types of Team Interdependence Sales Team Total Pooled Interdependence Hiring Decision Reciprocal Interdependence Team Output Comprehensive Interdependence Team Product Output Sequential Interdependence Sales Rep 1 Sales Rep 2 Sales Rep 3 Dept Members HR Dept Manager Game Programmer Game Marketer Game Story Writer Assembly Worker 1 Assembly Worker 2 Assembly Worker 3 Organizational Behavior: A Practical, Problem-Solving Approach 317Groups and Teams CHAPTER 8 THE BIGGER PICTURE Trust sometimes seems like a rare commodity in the world of work and you’re about to see why it’s so important at all levels of the Organizing Framework. Moreover, in the context of teams, trust is essential because it facilitates all interactions within and between teams. With this understanding you’ll be empowered to apply your knowledge to build trust and to repair it when it has been damaged or diminished. 8.4 TRUST BUILDING AND REPAIR— ESSENTIAL TOOLS FOR SUCCESS Build and repair trust. LO 8-4Trust is the willingness to be vulnerable to another person, and the belief that the other person will consider the impact of how his or her intentions and behaviors will affect you.46 We can’t overstate the value of trust in organizational life. It is the lubricant of interpersonal relationships within and between all organizational levels in the Organizing Framework, and thus it also drives performance across levels. Put simply, trusting employees provide tremendous benefits to their employers (see Figure 8.5). Two additional benefits of trust are faster communication and decision making. Shiona Watson, Senior Director of HR for Pepsico Australia and New Zealand, described how the trust she shares with CEO Robert Rietbroek enabled them to communicate more quickly and arrive at critical decisions more efficiently during the process of merging Smith’s Snackfood Company with Pepsi.48 FIGURE 8.5 Employer-Supportive Behaviors Enacted by Employees Based on High v. Low Trust47 Trust advantage: +39 Advocacy 78 39 74 36 Loyalty 71 38 Engagement 83 52 Commitment Trust their employer Do not trust their employer +38 +33 +31 SOURCE: Edelman, R. “2019 Edelman Trust Barometer: Global Report,” Edelman.com, https://www.edelman.com/sites/g/files/ aatuss191/files/2019-02/2019_Edelman_Trust_Barometer_Global_Report_2 (accessed May 4, 2019) Organizational Behavior: A Practical, Problem-Solving Approach 318 PART 2 Groups Trust can also help guard against job stress. Specifically, firefighters who trusted mem- bers of their team experienced less fatigue associated with the physical aspects of their jobs. The rationale is that trusting your coworkers boosts rather than depletes your energy— you don’t have to wonder if they have your back.49 Still other research suggests that trust in individual accounting auditors increased the likelihood that employees of the audited com- panies would report improper conduct (whistle-blow).50 Clearly, trust pays important dividends across industries, yet these have not been good times for trust in the business world. As Richard Edelman, whose company produces the famous Trust Barometer each year, said: The past two decades have seen a progressive destruction of trust in societal institu- tions, a consequence of the Great Recession, fears about immigration and economic dislocation caused by globalization and automation. Traditional power elite figures, such as CEOs and heads-of-state, have been discredited. The growth of social media platforms fully shifted people’s trust from a top-down orientation to a horizontal one in favor of peers or experts.51 On the bright side, respondents in the trust survey reported their employers as the most trusted of institutions (government and media the lowest). Driving this, according to Edelman and his colleagues, is employees’ expectation their employers will engage larger societal issues and be agents of change.52 This in turn places much greater responsibility on organizations and their leaders than in the past, making trust even more important now and in the future. Let’s increase your understanding of and ability to build trust by outlin- ing three fundamental forms of trust. Three Forms of Trust and How to Build Them For our purposes in OB, we discuss three particular forms of trust—contractual, communi- cation, and competence. The practical application for building trust is to act in ways that demonstrate each of the three types of trust: 1. Contractual trust. Trust of character. Do people do what they say they will do? Do managers and employees make clear what they expect of one another? Keep track of your commitments, be realistic (don’t overpromise), and be sure to deliver quality work on time. 2. Communication trust. Trust of disclosure. How well do people share information and tell the truth? Keep team members and employees informed by explaining policies and decisions and providing accurate feedback. Be candid about your challenges and limi- tations. And of course, tell the truth. 3. Competence trust. Trust of capability. How effectively do people meet or perform their responsibilities and acknowledge other people’s skills and abilities? Enhance your credibility by demonstrating good business sense, technical ability, and professionalism.53 Finally, if trust is a matter of give and take, it will be helpful to know how trusting you are of others. Self-Assessment 8.4 can help you learn about different aspects of your interper- sonal trust. Besides improving your self-awareness, knowledge of your interpersonal trust may provide guidance for how you can more effectively build trust with others—friends, classmates, coworkers, and bosses. Before moving on to how to repair trust, we encourage you to review and consider the advice in the Applying OB box regarding microinternships. Building your experience and skills during microinternships is an effective way of enhancing the level of competence trust future employers will have in you. Organizational Behavior: A Practical, Problem-Solving Approach 319Groups and Teams CHAPTER 8 How Much Do You Trust Another? Please be prepared to answer these questions if your instructor has assigned Self-Assessment 8.4 in Connect. 1. Which particular items in this questionnaire are most central to your idea of trust? Why? 2. Does your score accurately depict the degree to which you trust (or distrust) the target person? 3. Why do you trust (or distrust) this individual? 4. If you trust this person to a high degree, how hard was it to build that trust? Explain. 5. Given your inclination to trust others (your score on the assessment), describe three implications for your work in group assignments and project teams at school. SELF-ASSESSMENT 8.4 CAREER READINESS Applying OB Like more conventional internships, microinternships pay real money, and enable you to get a sense of whether you like the work and industry while you develop valuable skills and experience to add to your resume. They differ in that they are short term, outside of the typical summer internship format, and are often more flexible in terms of time and place (work can be done remotely). Microinternships are gigs more so than traditional jobs, but in some instances act like a mutual interview for future full- time employment. Benefits to You In addition to the above benefits, microinternships can happen earlier and more fre- quently than traditional internships offered through career services at your university. The greater breadth, depth, and length of your experience can make you a more attractive candidate to potential employers. Jeffrey Moss, the founder and CEO of Parker Dewey, a Chicago-based placement company and pio- neer in microinternships, describes them as projects that require 5 to 40 hours over the span of a few weeks. As with other gig arrangements, employers post the specs of the projects, along with compensa- tion, and students bid for the work. What’s in It for Employers? Motivated, cheap, and hopefully able labor and if things work out perhaps even a valuable full-time employee. Using a firm like Parker Dewey means little fuss and effort on the part of the employer, as it is Parker Dewey that facilitates the connections and handles all the administrative details, including compensation. This means virtually no involvement by the employing company’s HR department. Major Doesn’t Clearly Match Interests A reason Mr. Moss started the company, and another potential benefit for you, is that such gigs can help facilitate the college-to-work transition. You may be uncertain as to your major, which often disqualifies you from formal internships where students are selected based on major and year (juniors and seniors), or your major may not match your interests. Microinternships can provide alternatives and help you overcome these hurdles. They’re a low risk means of career exploration. College Credit Too? At least in the case of Parker Dewey, which has an arrangement with more than 150 colleges and universities in the U.S., some colleges also allow credit to be earned for microinternships. Microinternships Can Produce Major Benefits54 CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 320 PART 2 Groups Acknowledge what caused trust to be compromised. Forgive yourself and others. Let go and move on. Trust Restored Distrust Allow feelings and emotions to be discussed, constructively. Get and give support to others in the process. Reframe the experience and shift from being a victim to taking a look at options and choices. Take responsibility. Ask, “What did I do or not do that caused this to happen?” 2. 1. 3. 4. 5. 6. 7. FIGURE 8.6 Reina Seven-Step Model for Rebuilding Trust SOURCE: Reina, Dennis S., and Michelle L. Reina. Rebuilding Trust in the Workplace: Seven Steps to Renew Confidence, Commitment, and Energy. Oakland, CA: Berrett-Koehler Publishers, 2010. Repairing Trust Sometimes trust is fragile and can be violated in many ways, even unwittingly. Regardless of who is responsible for eroding or damaging trust, both parties need to be active in the repair of trust. Dennis and Michelle Reina studied thousands of instances of broken trust in business and developed seven steps for regaining it. Figure 8.6 illustrates their recom- mendations as an upward staircase, to show how individuals must work their way back from distrust, one step at a time, to finally regain what they have lost. This seven-step process can help whether you are the perpetrator or the victim. We conclude this section with an observation about the importance of trust for lead- ers from Lars Dalgaard, long-time venture entrepreneur and venture capitalist: The funny thing is that you’re actually a stronger leader and more trustworthy if you’re able to be vulnerable and you’re able to show your real personality. It’s a trust multiplier, and people really will want to work for you and be on a mission together with you.55 Organizational Behavior: A Practical, Problem-Solving Approach 321Groups and Teams CHAPTER 8 THE BIGGER PICTURE You will thrive in team settings when you better understand the characteristics of high- performing teams. You can use these characteristics as facilitators to function more suc- cessfully in group and team settings. You will also benefit from the practical suggestions, supported by research and practice, with which we conclude the chapter, such as how to foster and reward collaboration and teamwork. 8.5 KEYS TO TEAM EFFECTIVENESS Illustrate your ability to foster team effectiveness. LO 8-5Characteristics of High-Performing Teams As stated earlier, effective work teams enable employees to accomplish more than they could as individuals. They produce many desirable outcomes across levels of the Organizing Frame- work, such as innovation, safety, and saved lives, to name but a few.56 Current research and practice have identified the following eight attributes of high-performance teams: 1. Compelling team purpose and clear goals. 2. Clear goals and responsibilities. 3. Appropriate mix of knowledge, skills, and abilities. 4. Effective incentives and motivation. 5. Trust and communication. 6. Power and empowerment. 7. Early and effective conflict resolution. 8. Norms for collaboration.57 You’ve likely noticed that nearly all of these we’ve covered already in this chapter, but the difference here is that true high-performing teams do all of these things. That’s what makes them special and rare. The 3 Cs of Effective Teams With the above characteristics in mind, you might ask: How do you build a high-performing team? The short answer is to use the three Cs. (Note: These three Cs are at the team level, in contrast to the three Cs of effective team players discussed earlier that focus on the individual or team member level.) The three Cs are: Charters and strategies Composition Capacity Charters and Strategies Both researchers and practitioners urge groups and teams to explicitly plan before tackling their tasks, early in the group development process (the storming stage). These plans should include team charters that describe how the team will operate, for instance, how members will share information, hold members accountable, deal with conflict, and make decisions.58 Team charters were discussed in the Winning at Work feature at the beginning of this chapter, and since charters help team members align, this is reason enough to give them a try.59 Teams should also create and implement team performance strategies, deliberate plans that outline what Organizational Behavior: A Practical, Problem-Solving Approach 322 PART 2 Groups exactly the team is to do, such as goal setting and defining particular member roles, tasks, and responsibilities.60 Given that teamwork is a fact of life and one of the skills most sought by employers, nearly 79 percent in a survey by the National Association of Colleges and Employers (just behind communication and problem-solving skills),61 you are strongly encouraged to build your understanding and skill using team charters and strategies, while you’re in col- lege. Hone your skills now so you’re ready to use them when they really count—at work. To help boost your motivation, research shows that medical students who implemented team charters reported better group dynamics and improved communication within the team. They also felt and exercised greater responsibility for their own learning, perfor- mance, development, and team performance. These outcomes are especially encouraging given that patient care, like many other services and industries, is a team-based job.62 Composition Team composition describes the collection of jobs, personalities, knowledge, skills, abilities, and experience levels of team members.63 When we think of it this way, it is no surprise that team composition can and does affect team per- formance. Team member characteristics should fit the responsibilities of the team if the team is to be effective. Fit facilitates effectiveness and misfit impedes it—you need the right people on your team. Although it may seem counterintuitive, fostering functional conflict can actually enhance team effectiveness. The OB in Action box describes how. The title of this box may seem ridiculous or at least counterintuitive but read on and learn otherwise. First, note you’ll learn much more about conflict In Chapter 10, but some experts believe a key to effec- tive teams is tension, not harmony. One such expert is Liane Davey a team effectiveness consultant and author of The Good Fight, You First. Davey criticizes leaders and other employees who describe and strive for happy and harmonious teamwork, such as the rowing crew all synchronously pulling in one direction. She argues teams that func- tion this way are likely risk-adverse and composed of members who are overly concerned about offending other members or breaking from the status quo. To clarify, Ms. Davey does not recommend chaos and war, but instead coaches teams to purposefully identify and benefit from tensions. Team members should expect and improve due to conflict. This is how she explains it. 1. Draw a circle and carve it up into the necessary number of wedges for each role on the team. 2. Describe the value to the team of each role, such as what does this role provide that none of the others do. It helps to consider how removing this role would negatively impact the team. Perhaps the role is unnecessary or needs to change. 3. Which stakeholders, internal and/or external to the team, does each role serve, and how? How is the effectiveness of this role determined and by whom? 4. Then, what are the most common and important ways in which this role conflicts with or causes tensions with other roles? Davey contends doing this for each role not only clarifies them for the role players, but it helps in determining who is best to play each role for a given project. As you can see, this approach makes con- flict explicit and expected, which she believes improves teamwork and outcomes. How? The rationale is that team members will be more comfortable speaking up, calling out unsubstanti- ated positions, and collaborating. YOUR THOUGHTS? 1. What are the benefits to Liane Davey’s approach? 2. Identify potential shortcomings. 3. Explain why you would or would not want to be a member of a team using this approach. Want Better Teamwork? Expect and Ensure Conflict OB in Action Organizational Behavior: A Practical, Problem-Solving Approach 323Groups and Teams CHAPTER 8 Research shows that in the early stages of team development (forming and storm- ing), teams perform better when members have a high tolerance for uncertainty (a personality trait). This same finding applies to self-managed and virtual teams, due to their relative lack of imposed direction and face-to-face communication.64 Team research also shows that teams with members who possess high levels of extraversion and openness tended to provide better customer service than teams whose members were lower on these traits.65 Research on Tour de France cycling teams revealed that teams with greater diversity in tenure—with some new riders, some long-time riders, and some in between—had better team performance, measured as the number of riders finishing in Paris. What makes this finding intriguing is that diversity in terms of members’ skills, previous Tour stage wins, age, and experience had no effect on team performance!66 Finally, in the university context, top management teams (presidents, vice presi- dents, and chancellors) who were more diverse in terms of educational and disciplin- ary backgrounds generated more funding for research and improved school reputations.67 The bottom line: Create teams with the composition to match the desired objectives. Knowledge of OB and the Organizing Framework, in particular, can be very helpful in this regard. Capacity Team adaptive capacity (adaptability) is the ability to make needed changes in response to demands put on the team.68 Like individuals and organiza- tions, teams must adapt in order to thrive (and in some instances survive). It is fostered by team members who are both willing and able to adapt to achieve the team’s objectives. Using the 3Cs will help you build a high-performing team. King Lawrence/Blend Images Organizational Behavior: A Practical, Problem-Solving Approach 324 PART 2 Groups Described in this way, team adaptive capacity is a matter of team composition—the charac- teristics of individual team members. Team researchers explain how effective adaptation often includes recognition of the need to change, reframing team member’s skills and approach to the new demands, responding appropriately, and reflecting on the team’s adaptive processes and outcomes. Considered together, it is clear that capacity is another critical element of effective teams.69 Collaboration and Team Rewards Collaboration is the act of sharing information and coordinating efforts to achieve a collective outcome. It’s safe to assume that teams whose members collaborate are more effective than those whose members don’t. Collaboration is what enables teams to produce more than the sum of their parts. Many factors can influence collaboration, including how teams are rewarded. In this final section we’ll explore how to foster collabo- ration and the role rewards can play. Collaboration—The Lifeblood of Teamwork As interdependence increases, so too does the need for and value of collaboration. Today’s business landscape, character- ized by globalization, outsourcing, strategic partnering, and virtual teams, makes collabo- ration ever more important.70 That said, many things can interfere with collaboration, thus it is important to: 1. Communicate expectations. Clarifying roles and responsibilities for each team member is essential. Identify and communicate both individual and team accountability. 2. Set team goals. SMART goals for teams are a good place to start, but review goals regularly as a team (weekly, monthly, or quarterly) and be sure individual roles and responsibilities align with team goals. 3. Encourage creativity. Create a safe environment where employees can take risks with- out fear of humiliation or career damage. Nurture a “can do” attitude within the team, and foster it by asking “why” or “why not” instead of saying yes or no. 4. Build work flow rhythm. Technology can be of great assistance. Project management software as well as other scheduling tools can help team members know exactly what they need to do and when. This may also assist in coordination efforts and help assure that interdependent needs of team members are met. 5. Leverage team member strengths. Set individuals up to win by identifying and utilizing their strengths. The key to realizing the benefits of the team is to appropriately utilize the strengths of its individual members.71 Reward Collaboration and Teamwork Rewards matter, and dissatisfaction with rewards is a common cause for suboptimal team performance. Despite the need to work collaboratively, many if not most professional service firms (law, accounting, and consult- ing practices) measure and reward individual contributions, such as billable hours, up- or-out promotion systems (either qualify for partner or find another job), and competition between team members.72 Organizations that foster the greatest collaboration and assemble the most effective teams typically use hybrid reward systems that recognize both individual and team perfor- mance. Table 8.7 provides guidance on how to reward performance in teams, based on the desired outcome (speed or accuracy) and the degree of interdependence (low, moderate, high). These guidelines can give you a tremendous head start in determining how best to reward and motivate team performance.73 Appropriate rewards for collaboration and teamwork motivate at both the individual and team levels, and also positively influence important outcomes across all levels in the Organizational Behavior: A Practical, Problem-Solving Approach TABLE 8.7 Recommendations for Improving the Coordination and Motivation of Teams and Team Members LOW INTERDEPENDENCE MODERATE INTERDEPENDENCE HIGH INTERDEPENDENCE Speed Relay Teams Road Cycling Teams Crew Teams What to measure: Individual performance What to measure: Individual performance What to measure: Team performance How to measure: Managerial assessment How to measure: Managerial assessment How to measure: Managerial and peer assessment How to Reward: Competitive rewards How to reward: Competitive rewards How to reward: Cooperative rewards Accuracy Gymnastics Teams Basketball Teams Synchronized Swimming Teams What to measure: Individual performance What to measure: Team performance What to measure: Team performance How to measure: Managerial assessment How to measure: Managerial and peer assessment How to measure: Managerial and peer assessment How to reward: Competitive rewards How to reward: Cooperative rewards How to reward: Cooperative rewards SOURCE: Gottfredson, Ryan K. “How to Get YOUR TEAMS to Work.” Industrial Management 57, no. 4 (July/August 2015): 25–30. https://www.questia.com/ read/1P3-3769151081/how-to-get-your-teams-to-work. Organizing Framework. The following Problem-Solving Application illustrates how collaboration, teamwork, and performance management were applied in hospitals and nursing homes to improve patient and financial outcomes. Hospitals and Nursing Homes Collaborate to Combat Common Foes The Foes MRSA (methicillin-resistant Staphylococcus aureus) and CRE (carbapenem-resistant Enterobacte- riaceae) are two especially resistant and dangerous bacteria, and although you can catch these bugs any- where, the most common and problematic places are hospitals and nursing homes. When patients are infected in these facilities they are referred to as health care-associated infections (HCAIs). Some patients enter both types of facilities with these infections which need to be treated. But it also is increasingly common for patients to be infection free when admitted and then catch one of the bugs while a patient. This major problem is made even worse when infected patients are then transferred from one facility to another along with their super bugs. This means health care facilities are not islands with inde- pendent challenges contained within, but instead they are interconnected and literally share their prob- lem bugs. And once the bugs are in a facility they spread, often rapidly and mercilessly.74 Costs and Responsibilities The Centers for Disease Control estimates approximately 15 percent Problem-Solving Application 325Groups and Teams CHAPTER 8 Organizational Behavior: A Practical, Problem-Solving Approach 326 PART 2 Groups of hospital patients and 65 percent of nursing home patients carry resistant bacteria (not all will develop infections), which result in more than 23,000 deaths.75 Medicare is increasingly rewarding or pun- ishing hospitals based on performance outcomes, like infection rates and readmissions. Hospitals and nursing homes therefore have both moral and finan- cial incentives to act.76 Causes and Solutions Besides rampant misuse and overuse of antibiotics, which is the fundamental cause for resistance in the first place, the transfer from facility to facility and patient to patient is largely attributed to insufficient hygiene—clinician handwash- ing, patient bathing, and facility cleanliness, all of which can be controlled by health care personnel, but obviously any effort needs coordination, collabora- tion, and commitment. One nurse may be meticulously clean, but those efforts are undermined by the first/next one that isn’t so conscientious. Many efforts and programs have been initiated to combat the spread of HCAIs, including some in Southern California and Illinois. In fact, fifty facilities (hospitals and nursing homes) are implementing a new protocol funded by the CDC in which patients are bathed with a particular antimicrobial soap, one proven to kill MRSA, CRE, and some of the other most resistant bugs.77 Such collaborations are unusual and difficult, as in many cases the facilities in a particular area com- pete daily for patients and health care dollars. Put antibiotic prescribing practices aside, assume you are a chief nursing officer in a metro- politan hospital. Apply the 3-Step Problem-Solving Approach to help mitigate the problem of HCAIs. Apply the 3-Step Problem-Solving Approach Step 1: Define the problem(s) confronting hospitals and nursing homes. Step 2: Identify the major causes of the problem(s). Step 3: Make your recommendations. Provide details. We conclude this section with perhaps the most incredible and challenging application of teamwork—the International Space Station (ISS). ISS teamwork is literally out of this world! The International Space Station (ISS) was assem- bled in space and has been continuously occupied since 2000. More than 230 Individuals from 18 countries have visited the station whose operations are handled by five agencies: NASA (US), Roscos- mos (Russia), European Space Agency, Japanese Aerospace Exploration Agency, and the Canadian Space Agency. Control centers are located in each of these same places, which have the tremendous responsibilities and challenges of coordinating their efforts 24/7, 365, year after year, decade after decade, and through changes in political leaders and economic conditions.78 The individuals and teams involved in the ISS are confronted with some of the most challenging, and also fulfilling, experiences in team diversity of any workplace. Not only do the astronauts repre- sent different countries, languages, and cultures, but the countless people around the globe are similarly diverse. The coordination of people, pro- cesses, and outcomes is enormous, all of which is made more complicated by the inevitable turn- over. As with all other jobs and organizations, employees from the agencies noted above get promoted, rotate to different jobs, retire, and oth- erwise quit.79 Space Travel Requires Teams of Teams OB in Action Organizational Behavior: A Practical, Problem-Solving Approach 327Groups and Teams CHAPTER 8 The teams of teams manage every detail nec- essary to keep the ISS functional and to support the 2–13 astronauts onboard at any given time (3–6 is most common). Making matters even more complex is the growing number of commercial (nongovernment) partners who contribute to the missions. For instance, as space programs are retired, such as America’s space shuttle, other means are needed to transport people and equip- ment. Russia’s Soyouz rockets assumed much of that work, but now Dragon (by SpaceX), and CST-100 (Boeing) help. Each of these rockets has different capabilities, which makes planning and execution even more complex. Reliance on com- mercial partners is increasing with Orbital ATK’s and Antares and Sierra Nevada’s Dream Chaser also expected to begin service.80 This makes us wonder: How do they do it? The coordination and collaboration occur almost seam- lessly, despite the complexity related to people, pro- cesses, and culture. Dynamic Composition Safety is among the rea- sons astronauts’ time on the ISS is limited. Imagine the time and resources required to continually pre- pare new members to live on the space station. Technical, physical, and cultural training require- ments are immense, because all team members must effectively communicate and execute their responsibilities when on board. Technology and Distance Communication is criti- cal and an ever-present challenge. Ground control must communicate with both the ISS and its various locations on the ground at all times. It’s not as sim- ple as making a cellular phone call or Skyping. Dis- tance is an obvious obstacle. NASA and its partners must overcome the “us” versus “them” dynamic between the flight crew and mission control too. In addition to language differences at both mission control and on the ISS, isolation is a problem. Astronauts can be on board the station for up to a year at a time. The confined spaces and lack of communication with family and friends are incredi- bly stressful. Thankfully, new technology enables the flight crew to communicate more frequently and privately with others on the ground. The Ultimate Telecommuters An interesting way to think of astronauts is to think of them as the most extreme telecommuters! Most if not all the chal- lenges discussed in this chapter are experienced by those involved in the ISS—both on the ground and in space.81 YOUR THOUGHTS? Imagine you’re a leader of the ISS flight crew. 1. What team challenges do you think would be most enjoyable for you? 2. What team challenges do you think would be most problematic for you? 3. What would you do to ensure the team aboard the ISS works most effectively and safely? One of the ISS teams gathered for a group photo. Source: NASA Organizational Behavior: A Practical, Problem-Solving Approach 328 PART 2 Groups 8.6 MAKING THE CONNECTION: HOW CAN WORKING WITH OTHERS INCREASE MY PERFORMANCE? THE BIGGER PICTURE You will thrive as an employee and manager by applying your knowledge of groups, teams, and trust. Describe the implications of groups and teams for you and managers. LO 8-6 As in previous chapters, we conclude this one with a number of explicit practical applica- tions for you and for managers. Takeaways for Me There are five practical ways you can apply the material in this chapter: 1. Learn which individual functions of groups are most important to you. This knowledge can help you understand why you are more satisfied in some groups than others. Knowledge of organizational functions can help diagnose conflict and/or underper- formance in some of the groups in which you are a member. 2. Apply your knowledge of task and maintenance roles to identify ways you can make meaningful contributions to groups and teams. If a role is missing and important, use your knowledge to fulfill it. 3. Develop your teamwork competencies. Table 8.5 provides examples of how to do it. These competencies will serve you in any group or team and increase your value throughout your career. 4. Apply your knowledge to combat social loafing. Don’t let free riders add to or under- mine your hard work. 5. Pay attention to communication, support, respect, fairness, predictability, and compe- tence to boost your trustworthiness. Your trustworthiness will make or break you. When trust is diminished or violated, use Figure 8.6 to repair it. Takeaways for Managers There are six practical implications that will benefit you as a manager: 1. Identify the important task and maintenance roles in the various teams you manage or belong to. Be sure these important roles are fulfilled effectively (not always by you). 2. Reduce frustrations when working in teams by understanding the group development process. Identify the particular stage of development the group is in and apply your knowledge to advance it to the next. 3. Evaluate those you manage in terms of the three Cs of a team player—committed, collaborative, competent. These can help you identify top performers and underper- formers. Organizational Behavior: A Practical, Problem-Solving Approach 329Groups and Teams CHAPTER 8 4. Always be mindful of trust, how trusting you are of your people and how trusting they are of you. Managing people is infinitely more difficult when trust is an issue—never underestimate its importance. Apply the knowledge gained in this chapter to both build and repair trust (see Figure 8.6). 5. Use team charters to set up your various teams to win. Doing this work early can pay great dividends and avoid conflict throughout the team’s existence. 6. Ensure the tangible and intangible rewards you offer support collaboration and teamwork. Your work life, and life more generally, is awash in teams. Apply the OB knowledge and tools gained in this chapter to be more successful and fulfilled when you work with others. Organizational Behavior: A Practical, Problem-Solving Approach 330 PART 2 Groups You learned that working with others can increase everyone’s performance because groups and teams can, and often do, accomplish more than individuals. You learned that roles and norms are the building blocks of group and team behavior. We explored group development processes, along with ways to differentiate groups and teams and the characteristics of effective team players. We saw the different types of teams and the value of interdependence. You learned how to boost personal effectiveness further still by understand- ing trust and knowing how to repair it. Finally, we addressed the elements that foster team effective- ness and collaboration. Reinforce and consolidate your learning with the Key Points and Organizing Framework. Then challenge your mastery of the material by completing the Problem-Solving Appli- cation Case and Legal/Ethical Challenge below. Key Points for Understanding Chapter 8 You learned the following key points: 8.1 GROUP CHARACTERISTICS • Groups consist of two or more individuals who have low/no task dependency, are not accountable to each other, and may (not) assemble for a specified period of time. • Both formal and informal groups are useful. • Roles are expected behaviors for a particular job or position, and group roles set expecta- tions for members of a group. • Norms are shared attitudes, opinions, feelings, or actions that help govern the behaviors of groups and their members. 8.2 THE GROUP DEVELOPMENT PROCESS • Groups often develop along five defined steps: forming, storming, norming, performing, and adjourning. • Punctuated equilibrium is another form of group development. 8.3 TEAMS AND THE POWER OF COMMON PURPOSE • Teams are collections of two or more individu- als whose tasks are interdependent, collec- tively accountable for outcomes, and work together for a specified time. • Team players are committed, collaborative, and competent. • Common forms of teams are work, project, cross-functional, self-managed, and virtual. • Team interdependence describes the degree to dependence between members for task completion. 8.4 TRUST BUILDING AND REPAIR—ESSENTIAL TOOLS FOR SUCCESS • Trust is a belief that another person will con- sider the way his or her intentions and behav- iors will affect you. • Three common forms of trust are contractual, communication, and competence. • Damaged trust can be repaired using a seven-step process. 8.5 KEYS TO TEAM EFFECTIVE- NESS • High-performing teams are characterized by clarity, complementary skills, incentives and motivation, trust and communication, empow- erment, effective conflict resolution, and collaboration. • Charters and strategies, composition, and capacity are the three Cs of effective teams. • Rewards and collaboration are important means of fostering team effectiveness. What Did I Learn? Organizational Behavior: A Practical, Problem-Solving Approach 331Groups and Teams CHAPTER 8 8.6 HOW CAN WORKING WITH OTHERS INCREASE MY PERFORMANCE? • Understanding groups, teams, and trust are keys to success as an employee. • Understanding and applying your knowledge of groups, teams, and trust are keys to suc- cess as a manager. The Organizing Framework for Chapter 8 As shown in Figure 8.7, the process of group/ team dynamics leads to a large number of outcomes at all three levels in the Organizing Framework. INPUTS PROCESSES OUTCOMES Person Factors Situation Factors Individual Level Group/Team Level • Group/team dynamics Organizational Level Individual Level • Task performance • Work attitudes • Turnover • Career outcomes • Creativity Group/Team Level • Group/team performance • Group satisfaction • Group cohesion and conflict Organizational Level • Accounting/financial performance • Customer satisfaction • Innovation ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. FIGURE 8.7 Organizing Framework for Understanding and Applying OB Organizational Behavior: A Practical, Problem-Solving Approach 332 PART 2 Groups PROBLEM-SOLVING APPLICATION CASE Money, Design, and Disaster Assume you’re the CEO of a company in which a sin- gle product accounts for nearly 80 percent of current sales (worth over $300 billion) and it is the fastest sell- ing in the long and proud history of your company. The product sells for approximately $100 million, and great care was taken in its design with the strategy of ensur- ing it easily fit with your company’s other products which have been purchased by companies around the world. However, this same product is responsible for the deaths of 346 people in just six months. The CEO is Dennis Muilenburg, the company is Boeing, and the product is the 737 Max plane. Every one of these planes sits on the ground across the globe.82 COSTS TO THE COMPANY The value of the lives lost is of course immeasurable but will require compensation. The quantifiable costs are varied and potentially enormous, such as a drop in the value of the stock, massive legal liabilities from the families of the passengers, and increased scrutiny from regulators. Boeing’s reputation is horribly tar- nished, to say the least. Confidence in the quality and safety of Boeing’s products has been deeply shaken for a range of important stakeholders, notably airline passengers who fly In Boeing’s products, investors who buy the company’s stock, airlines who purchase the planes, and the pilots and cabin crews who fly them. Another stakeholder who thus far has been largely overlooked is Boeing’s employees. After all it is they who built, tested, and helped certify the safety of the planes. The crashes call into question their perfor- mance, the collaboration between departments, and importantly, management oversight. In addition to the blame cast upon them, they too are concerned and deeply saddened by the loss of life due to the product failures. HOW DID THIS HAPPEN? Facts will no doubt continue to emerge for a long time, but now we know several relevant details. The Max was the latest model in the long line of 737s dating back to the 1960s.83 The Max is more fuel efficient and has longer range than its predecessors, making it more attractive to airlines around the world. These gains are due primarily to larger engines, but they in turn require positioning farther forward and up than the previous models. The design modification causes the plane’s nose to tilt upward in some conditions which can cause the plane to stall. To combat this potentially cata- strophic event, Boeing created and installed software— Maneuvering Characteristics Augmentation System (MCAS)—to adjust the nose down. It is now clear the MCAS and its accompanying sensors did not function properly and wrestled control away from pilots and caused the crashes.84 Adding to the problem, it appears Boeing cut cor- ners in the design and certification of the Max. Many experts have claimed the MCAS was a band-aid and insufficiently addressed the underlying design prob- lems. Also insufficient was that only one sensor trig- gered the software, whereas most critical systems on planes have redundancies to guard against a failure in one element. It has also come to light that the Fed- eral Aviation Association (FAA), the governmental agency responsible for certifying new planes, actu- ally had Boeing employees play a significant role in the certification process, raising concerns of conflict of interest. To elaborate, critics have accused the FAA of having a “cozy” relationship with Boeing and allowing the airline to exert undue influence in the certification and safety testing. These certification processes also in large part determined how much training would be required by airlines and their pilots to fly the new planes.85 TRAINING AND COMMUNICATION One of the key selling points of the Max was it could be easily integrated into existing fleets, in particular, minimal pilot training would be required. This would reduce costs and boost profits, making the plane more attractive to airlines. However, it appears Boeing did not appropriately train and inform pilots of the changes, new systems, and potential challenges associated with the Max, engine positioning, and MCAS.86 Some pilots have since commented that a lack of training and communication related to these types of changes are uncharacteristic of Boeing, meaning his- torically pilots could trust they would be appropriately informed and trained. Evidence for these deficiencies was revealed in black-box and flight data recordings and in subsequent simulations. These showed pilots of the doomed flights had less than a minute to respond, Organizational Behavior: A Practical, Problem-Solving Approach 333Groups and Teams CHAPTER 8 and when they did, were unable to regain control of the planes due to the MCAS.87 WHAT HAPPENED IN THE HANGARS, DESIGN ROOMS, AND IN COUNTLESS MEETINGS? From designers, to their managers, to safety engi- neers, and regulators, their decision-making criteria and processes failed. Senior leadership’s knowledge and involvement is yet to be revealed, but as with the emissions scandals in the auto industry in recent years, it is likely that numerous senior leaders had intimate involvement and knowledge. This could pose personal liability (legal and financial), along with the jobs and reputations of many executives. Some protestors are already calling for CEO Muilenburg to resign. Moreover, additional information has come to light showing that Boeing engineers “believed” a key cock- pit warning light was a standard feature on all new 737 Max planes. It wasn’t. Only the 20 percent of airlines who had purchased the equivalent of a premium pack- age had the working warning light. The light signaled pilots when two key sensors register different readings about the angle of the plane, which suggests there may be a malfunction with the sensors that pilots should investigate. But without the functioning light, it seems pilots of the doomed flights were unaware the sensors malfunctioned, activating the MCAS which dramatically and inappropriately corrected the angle of the planes. This scenario played out in seconds, not minutes, and seems to be a major design flaw and fun- damental cause of the fatalities.88 This scenario was exacerbated by a lack of commu- nication by Boeing. After learning in 2017 the lights didn’t function on all planes, Boeing conducted inter- nal tests and concluded the planes were still safe and no action was necessary. Because of this the company did not notify airlines, pilots, or the FAA.89 Boeing’s troubles, however, are broader and deeper than the 737 Max. Production processes and practices for its 787 Dreamliner have been scrutinized for years. (Remember the battery fires that grounded those planes in 2013? The fixes were much more complex than software.)90 Company norms were strong and clear, such that criticisms of key products were dis- couraged and or ignored. Numerous reports exist of employees being intimidated and, in some instances, retaliated against for speaking up. Critics, some of whom are current and former employees, claim the company values production speed over quality, and similar concerns motivated Qatar airlines to stop accepting planes from a plant in South Carolina. Many now wonder if this reflects deeply embedded cultural problems throughout Boeing and its products.91 CURRENT PREDICAMENT For the Max to fly again, Boeing must develop and implement a software fix, and have this certified by the FAA, which will take several months. Many people both inside and outside the airline industry doubt that will be enough. Trust is gone. As stated by Ross Aimer, aviation consultant and former Boeing training captain: “Boeing in the past always told the pilots and airlines exactly what was on those airplanes. . . . I have been a Boeing pilot for over 50 years and have loved their products, but they have lost my trust.” He further said he feels Boeing was purely profit focused in these decisions. A survey showed that 53 percent of American adults would rather not fly in the 737 Max even when it is approved for service.92 Mr. Muilenburg realizes the magnitude of the situa- tion and began what is sure to be a long apology and trust re-building tour.93 But again, many experts ques- tion whether he or anyone else can do enough. Some argue Boeing will need to replace the 737 Max alto- gether; still, others say the flying public has short mem- ories and such drastic action will not be required. To elaborate, sadly planes do crash, and sometimes this is due to design errors which are then corrected, and the same model of planes returns back into service. Assume you are the board of directors at Boeing, and apply the 3-Step Problem-Solving Approach to the predicament facing the company. APPLY THE 3-STEP PROBLEM- SOLVING APPROACH TO OB Use the Organizing Framework in Figure 8.7 and the 3-Step Problem-Solving Approach to help identify inputs, processes, and outcomes relative to this case. STEP 1: Define the problem. A. Look first at the Outcomes box of the Organizing Framework to help identify the important problem(s) in this case. Remember that a prob- lem is a gap between a desired and current state. State your problem as a gap and be sure to consider problems at all three levels. If more than one desired outcome is not being accom- plished, decide which one is most important and focus on it for steps 2 and 3. B. Cases have key players, and problems are generally viewed from a particular player’s perspective. You need to determine from whose perspective—employee, manager, team, or the organization—you’re defining the problem. In this case you’re asked to assume the role of the board of directors for Boeing (they have ultimate responsibility for the entire organization). Organizational Behavior: A Practical, Problem-Solving Approach 334 PART 2 Groups C. Use details in the case to determine the key problem. Don’t assume, infer, or create problems not included in the case. D. To refine your choice, ask yourself, why is this a problem? Explaining why helps refine and focus your thinking. Focus on topics in the current chapter, because we generally select cases illus- trating concepts specifically located within the current chapter. STEP 2: Identify causes. Using material from this chapter and summarized in the Organizing Framework, identify the causes of the problem you identified in Step 1? Remember, causes tend to appear in either the Inputs or Processes boxes. A. Start by looking at the Organizing Framework (Figure 8.7) and decide which person factors, if any, are most likely causes of the defined prob- lem. For each cause, explain why this is a cause of the problem. Asking why multiple times is more likely to lead you to root causes of the problem. For example, do executive characteris- tics help explain the problem you defined in Step 1? B. Follow the same process for the situation fac- tors. For each ask yourself, why is this a cause? By asking why multiple times you are likely to arrive at a complete and more accurate list of causes. Again, look to the Organizing Frame- work for this chapter for guidance. Did particular policies or practices play a role? C. Now consider the Processes box in the Organiz- ing Framework. Are any processes at the indi- vidual, group/team, or organizational level potential causes of your defined problem? For any process you consider, ask yourself, why is this a cause? Again, do this for several iterations to arrive at the root causes. D. To check the accuracy or appropriateness of the causes, be sure to map them onto the defined problem and confirm the link or cause and effect connection. STEP 3: Recommend solutions. Make your recommendations for solving the problem. Consider whether you want to resolve it, solve it, or dissolve it (see Section 1.5). Which recommendation is desirable and feasible? A. Given the causes you identified in Step 2, what are your best recommendations? Use material in the current chapter that best suits the cause. Consider the OB in Action and Applying OB boxes, because these contain insights into what others have done. B. Be sure to consider the Organizing Framework— both person and situation factors—as well as processes at different levels. C. Create an action plan for implementing your rec- ommendations and be sure your recommenda- tions map onto the causes and resolve the problem. LEGAL/ETHICAL CHALLENGE Who’s Accountable? Who is responsible for the performance and conduct of a team? At work it is typically the team members and the immediate manager, and to a lesser extent, the manager’s manager and so on. In sports, most would agree at the very least players and coaches. In colle- giate and professional sports many others are involved in creating, supporting, and contributing to the perfor- mance of the teams, such as assistant coaches, gen- eral managers and owners (in professional sports), and athletic directors, presidents, and trustees at the col- lege level. All of them, individually and collectively, share some measure of the glory of victory and the agony of defeat. But who, if anyone, shares the respon- sibility for conduct off the field, court, pool, or arena? If it’s misconduct, then who shares the responsibility is unclear, or at least uneven. The National Collegiate Athletic Association (NCAA), the governing body for college sports, routinely sanctions violations of rules related to recruiting, aca- demic eligibility, and illegal payments. Titles and wins are vacated, schools can be banned from playoff par- ticipation for a season, coaches and players are suspended for a given number of games. Nevertheless, misconduct is widespread, and at some schools and with some coaches, violations occur repeatedly, sug- gesting that current efforts to prevent unethical con- duct in college sports are ineffective. The most egregious misconduct sometimes quali- fies as criminal, as was the horrific sex abuse case involving team physician Larry Nassar (Michigan State University and USA Gymnastics) and defensive coordi- nating coach Jerry Sandusky (Penn State University Organizational Behavior: A Practical, Problem-Solving Approach 335Groups and Teams CHAPTER 8 football). They received prison sentences of 40 to 175 years and 30 to 60 years, respectively.94 Some mis- conduct qualifies as bribery and fraud and also ends up in courts. The vast majority of misconduct in college sports Is wrong, but not illegal, and therefore is left up to the NCAA, universities, and respective university leaders at all levels to monitor, prevent, and punish. With this as background, one can appropriately argue that everyone makes mistakes. Indeed, it is part of being human. It’s also reasonable to assert some mistakes should be forgiven (get a second chance); however, the larger issue in college sports is patterns of misconduct that exist. Patterns of misconduct occur in particular programs, universities, and with certain coaches. Nassar’s and Sandusky’s crimes continued for years, many people knew about it, and some of these have also suffered consequences. What about Rick Pitino? He had a prolific coaching career across college and professional teams: Hawaii, Boston Uni- versity, the Knicks, Providence, Kentucky, the Celtics, and finally Louisville. He was implicated in various and multiple types of misconduct in his first position, and yet later Kentucky hired him when they were already in the process of “paying for the sins” of their previous coach. Eventually, the scandal at Louisville seemingly ended his career.95 Then there is Larry Brown, who was hired to coach basketball at Southern Methodist University in 2012. Like Pitino, Brown had legendary success at both the college and professional levels. But his UCLA champi- onship team was stripped of its title because of NCAA violations, and when he later coached the University of Kansas it was banned from postseason play for a year and placed on probation for three years. If that wasn’t enough, while at SMU he and the team were hit with additional NCAA sanctions for violations.96 With the preceding as background, the point of this Legal/Ethical Challenge is determining who should bear the consequences of such misconduct. It seems that leaders at different levels of universities reap the benefits of wins and championships, but rarely suffer the consequences of the misconduct, even miscon- duct they (should) have known about. Moreover, these same university officials are routinely involved in the hiring and annual reviews of these troubled coaches, athletic directors, team physicians, etc. If you agree this is a problem that needs to be addressed, despite its intentions and efforts, the NCAA is only part of the solution. Perhaps the ultimate solution lies in the quality of university-level leader- ship by boards of trustees, presidents, and athletic directors.97 The NCAA gives college presidents wide latitude to govern sports programs. They have official authority, and typically report to boards of trustees who are in effect their bosses and thus should be responsible for their conduct. What if sanctions were extended to university leaders? For instance, what if the board of trustees at a given university said that if a player is suspended, so are the coach(es) and the ath- letic director, without pay. If the player is dismissed, so too are the coach(es) and athletic director, and per- haps even the college president. After all, business executives and managers are fired every day when their conduct, or that of their employees, jeopardizes far less money than is at stake in major college sports programs. While this solution may seem extreme and even unrealistic, it would certainly motivate presidents, athletic directors, and trustees to take greater responsibility for and oversight of the ethical conduct of their sports teams and programs.98 These leaders bask in the rewards when their teams win champion- ships, but they are able to contain or even avoid the costs of their misconduct. If both the rewards and the punishments extended beyond individual players, however, that behavior would likely change. It is also more likely that leaders, such as university presi- dents and trustees, would be more proactive. For instance, they might think twice about hiring coaches who bring not mistakes, but patterns of misconduct, with them.99 In the current system, if anyone pays penalties in a meaningful way, it is the players who lose postseason opportunities and scholarships, compared to a token few game suspensions for coaches who are already wealthy. So what about the other leaders—athletic directors, presidents, trustees?100 What Should Be Done about the Unethical Conduct in College Sports? 1. Don’t change anything. The current means for dealing with misconduct, including NCAA sanc- tions, are sufficient. Justify. 2. Modify the NCAA authority and sanctions but keep the system more or less as it is. Explain. 3. Hold university leadership accountable—some combination of coaches, their bosses (athletic directors), their bosses (university presidents), and their bosses (boards of trustees). Explain. 4. Brainstorm another alternative and explain. Organizational Behavior: A Practical, Problem-Solving Approach LO 9-1 Describe how the communication process works. LO 9-2 Identify the key aspects of interpersonal communication. LO 9-3 Explain how gender and age affect the communication process. LO 9-4 Describe how using social media can increase your effectiveness at work. LO 9-5 Explain how communication skills can increase your effectiveness. LO 9-6 Describe the implications of communication in the digital age for you and managers. After reading this chapter, you should be able to: The Organizing Framework shown in Figure 9.1 summarizes what you will learn in this chapter. You can see that communication is an important process at all three levels of OB—individual, group/team, and organizational. The quality and effectiveness of your communication is influ- enced greatly by person factors, such as your interpersonal, nonverbal communication, and lis- tening skills. Of course many situation factors also influence the outcomes of your communication efforts. Your choice of medium, spoken or written words, and of course social media are increas- ingly important in the workplace. Collectively, these inputs impact communication across levels and outcomes in the Organizing Framework. Communication in the Digital Age9 Ja n H av lic ek /J oh ny 87 /1 23 RF Organizational Behavior: A Practical, Problem-Solving Approach 337 FIGURE 9.1 Organizing Framework for Understanding and Applying OB ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. INPUTS PROCESSES OUTCOMES Person Factors • Nonverbal communication • Active listening • Nondefensive communication • Empathy • Ethical behavior • Social media behaviors (an individual employee) • Communication skills Situation Factors • Choice of medium • HR policies (hiring and firing) • Social media practices (managers and coworkers) Individual Level • Communication Group/Team Level • Communication Organizational Level • Communication • HR policies (social media policies) Individual Level • Task performance • Work attitudes • Turnover Group/Team Level • Group/team performance • Group satisfaction Organizational Level • Accounting/financial performance • Customer satisfaction • Innovation • Reputation • Legal liability Your communication skills are important determinants of your opportunities and effectiveness throughout your working life. Many jobs require teamwork and communication technology, meaning you are well served to enhance your understanding of communication processes and improve the many type of communication skills used in your professional life. Hero Images Inc./Alamy Stock Photo Communication in the Digital Age CHAPTER 9 Organizational Behavior: A Practical, Problem-Solving Approach 338 Winning at Work Communication Counts in Landing a Job As a job seeker, you are responsible for proving you’re the best candidate for the job. Performing well during a job interview depends on what you say and how you say it! Effective communication skills enable you both to sell your- self as the best candidate and to calm your own nerves. What You Say in a Job Interview • Direct the conversation. Many people simply wait to be asked questions, but you don’t need to. You can use small talk to get things started, but be brief. Also be sure you know your key selling points and guide the conversation to these. You can even state them upfront, saying, “I’d like to cover A, B, and C.” • Pick your selling points. Identify and focus on only your top two or three selling points. If you have little experi- ence, focus on personal qualities or skills. If you have experience, highlight significant achievements. • Substantiate. Support and illustrate your selling points with numbers and/or stories. For instance, be explicit and say you were the number one in sales, increased efficiency by 20 percent, ranked top 10 in your class, or were member of a state champion team in a sport. Also consider using stories to describe achievements (school, work, or sports), how you dealt with a challenging situa- tion, or what you appreciated most about a particular job or experience. • Describe what’s in it for them. Ask not what the job will do for you, but what you can do on the job. Explain why you’re a good match and why you can add value to the organization. • Do your homework. Be sure to thoroughly research the company and people. Look online for information relevant to past, current, and future company events and initiatives. Use this knowledge when talking or asking questions about the company. • Anticipate challenging questions. Know you will be asked, “What are your weaknesses?” The key here is to briefly identify a challenge, then discuss how you solved the problem and how it helped you grow. How You Say It • Show them you’ll bring it.  Express your enthusiasm and willingness to do anything, not just the most inter- esting stuff. Remember, enthusiasm and other positive emotions are both attractive to others and contagious. Positivity sells . . . be positive in your words, nonverbals, attitude, and emotions! • Smile. It’s one of the easiest ways to win people over. • Take your time. Nerves can make us speak more quickly than usual. Slow yourself to a normal conversa- tional pace. If you need time to phrase your answer, say, “That’s a good question,” before you respond. • Make eye contact. Don’t stare in the other person’s eyes, but don’t stare at the floor or out the window either. • Dress the way they dress. Regardless of your own style or wardrobe, your choices need to match what is common at the company. The rule: Anything that dis- tracts, diminishes. • Close with a handshake. End the interview with a “thank you” and a firm handshake (don’t crush bones). • Follow up. At the end of the interview ask when the interviewer would like you to follow up. Then drop your interviewer a note of thanks. Fighting Nerves • Prepare. • Breathe. • Pause before answering. • Never say you’re nervous. • Use positive self-talk and visualization.1 What’s Ahead in This Chapter We’re about to give you practical guidance on how to communicate effectively. Communication is a critically important process at all levels of OB—individual, group, and organizational—and in most arenas of your life. We’ll guide you through important elements at each level, beginning with how individuals process informa- tion. We’ll also highlight the characteristics of compe- tent communicators and show you how to more successfully communicate within and between genera- tions and genders. We’ll conclude with the most practi- cal tips of all: the do’s and don’ts of using social media in your professional life, ways to develop effective pre- sentation and conversational skills, and suggestions for managing up. Organizational Behavior: A Practical, Problem-Solving Approach 339Communication in the Digital Age CHAPTER 9 9.1 BASIC DIMENSIONS OF THE COMMUNICATION PROCESS Irish playwright George Bernard Shaw summed up a key issue with communication in stating “the single biggest problem in communication is the illusion that it has taken place.”2 The illusion that we have communicated when we have not can lead to catastrophic consequences, such as the 2014 sinking of the Sewol, a South Korean ferry. Investigators concluded that “crucial miscommunication between the crew and ship traffic controllers who could have expedited rescue” was a key cause of 293 deaths. Many of the dead were 16- and 17-year-olds on a school outing.3 Effective communication helps individuals, groups, and organizations to achieve their goals. Bridgewater Associates LP, the world’s largest hedge fund, is trying to enhance pro- ductivity and customer service by fostering open communication. Employees are asked to “tell it like it is,” according to The Wall Street Journal. They are “encouraged to air any gripes and concerns about the hedge fund in a digital ‘issue log’ that can be seen by anyone at Bridgewater. The comments usually are about bigger problems but also have included difficulties formatting e-mail.” To improve individual performance, the company also gath- ers and disseminates feedback collected on iPads on which workers use apps to rate each other on dozens of strengths and weaknesses.4 TEKsystems, an IT recruiting firm, has employed a different communication strategy. The company sent 18 senior leaders to visit more than 100 of its local offices over the course of one month. The goal of these meetings was to update employees in person about what was happening in the company and its plans.5 These examples illustrate why communication is a critical process at all three levels in the Organizing Framework. We hope this chapter helps you develop your communication skills. Defining Communication Communication  is “the exchange of information between a sender and a receiver, and the inference (perception) of meaning between the individuals involved.”6 It is a circular and dynamic process in which people interpret and make sense of the information they exchange. And it’s a very important activity in both our personal and professional lives.7 A recent national survey of nearly 1,000 employers who recruit on business school campuses revealed that communication skills top the list of skills and abilities these employers will be looking for in new hires. One recruiter observed that candidates seem to have the technological skills employers are looking for. However, many recent grads seem to lack soft skills, such as communications and people skills, which tend to make the dif- ference in an effective hire.8 Describe how the communication process works. LO 9-1 THE BIGGER PICTURE By this point in your study of OB, you probably realize that communication is a critical and dynamic process within the Organizing Framework. It includes a sender, a message, and a receiver; encoding and decoding; a medium; feedback; and the need to deal with “noise” or interference. You will also see why you should match the communication medium to the situation. Organizational Behavior: A Practical, Problem-Solving Approach 340 PART 2 Groups How the Communication Process Works We all know communicating is neither simple nor clear-cut. Researchers have begun to examine it as a form of social information processing in which receivers interpret messages by cognitively processing information. This work has led to development of a perceptual model of communication that depicts it as a process in which receivers create meaning in their own minds.9 Let us consider the parts of this process and illustrate them with an example (see Figure 9.2). Sender, Message, and Receiver The sender is the person or group wanting to com- municate information—the message. The receiver is the person, group, or organization for whom the message is intended. These students are working on a class project. Note how some of them are actively involved while others appear a bit detached. Why do you think college students overestimate their communication skills? Jacob Lund/Shutterstock FIGURE 9.2 Communication Process in Action Noise (any interference) Let’s meet at Starbucks to study. 2. Message is transmitted through a medium (e.g., text message). Which Starbucks? We have two classes together; which one are you thinking about? 1. Sender encodes message, selects medium (e.g., cell phone). 4. Receiver sends feedback through a medium (e.g., text message). 3. Receiver decodes message and decides that feedback is needed. (left): Wolf/Fuse/Getty Images; (right): paffy/Shutterstock Organizational Behavior: A Practical, Problem-Solving Approach 341Communication in the Digital Age CHAPTER 9 Encoding Communication begins when a sender encodes an idea or thought. Encod- ing means translating thoughts into a form or language that can be understood by others. This language becomes the foundation of the message. For example, if a professor wants to communicate with you about an assignment, he or she must first think about what infor- mation to communicate. Once the professor has resolved this issue in his or her mind (encoding), the next step is to select a medium in which to communicate. Selecting a Medium Managers can communicate through a variety of media. These include face-to-face conversations and meetings, telephone calls, charts and graphs, and the many digital messaging forms—e-mail, texting, voice mail, videoconferencing, Twitter, Facebook, Blackboard, and others. We discuss the best way to select a medium in the next section. Decoding and Creating Meaning Decoding, the process of interpreting or making sense of a message, occurs when receivers receive a message. When a professor communicates with you about an assignment, for example, you decode the message when you receive it. The perceptual model of communication assumes the receiver creates the meaning of a message in his or her mind. This means different people can interpret the same message differently. Feedback The first round of feedback occurs when the original receiver expresses a reaction to the sender’s message. Once the initial sender has obtained this feedback, he or she is likely to decode it and send corresponding feedback. This process continues until sender and receiver believe they have effectively communicated. Noise Noise  is anything that interferes with the transmission and understanding of a message. There are many other sources of noise: language differences, speech impair- ment, illegible handwriting, inaccurate statistics, poor hearing and eyesight, environmental noises, other people talking, faulty equipment, and physical distance between sender and receiver. Noise affects all the links in the communication process. Nonverbal communica- tion, discussed later in this chapter, also is a source of noise, as are cross-cultural differ- ences between senders and receivers, and the physical work environment. If noise is anything that interferes with the transmis- sion and understanding of a message, what is the absence of noise? For Amy Risley, CEO of award- winning skin care company Skinfix, Inc., it’s a stan- dard of communication transparency high enough to make the company’s message crystal-clear—to employees, clients, suppliers, and the industry.10 How does Skinfix achieve that transparency? First, not only are its products tested and recom- mended by impartial dermatologists; the number and percentage of natural active ingredients are also ver- ified and listed on the packaging. “We respect our customers enough to be transparent with our formu- lations,” says Risley. That includes not overpromising. The company takes pride in its customers’ loyalty and the high ratings its products earn as a result of rigor- ous testing procedures. “If it doesn’t fix skin, it doesn’t wear the Skinfix logo,” Risley says. Transparency also extends to information shar- ing among employees. Working on the principle that “a fantastic product is not the work of one—it’s a col- laborative effort along the way,” employees absorb information from a wide variety of sources, including beauty, fashion, and dermatology, and use it to col- laborate. “We don’t silo teams,” Risley observes. “We work across functions because we all wear many hats in a small company. Collaboration is a necessity, and one that enriches the work environment.” Transparency Is the Message at Skinfix OB in Action Organizational Behavior: A Practical, Problem-Solving Approach 342 PART 2 Groups Selecting the Right Medium One way in which we communicate effectively is by using the medium most appropriate for the situation. That is, we match media richness with the situation’s complexity. Let’s look at how. Media Richness Media richness  measures the capacity of a given communica- tion medium to convey information and promote understanding.11 Media vary from rich to lean. As shown in Figure 9.3, there are three zones of communication effectiveness. Effective communication occurs when the richness of the medium is matched appropri- ately to the complexity of the problem or situation. The richer a medium, the better it is at conveying information. Four factors affect communication richness: 1. Speed of feedback: Faster feedback offers more richness. 2. Channel: The visual and audio characteristics of a videoconference are richer than the limited visual aspects of a written report. The company also shares sensitive information with employees, including profit and loss, cost of goods sold, and profit margin. While some managers might be cautious with these data, Risley finds that choosing “transparency over fear” has worked to the company’s advantage. “We don’t make a habit of sharing detailed strategies with anyone and every- one,” she says, “but we do share information when it’s relevant and productive . . . when we share within the industry, they share back! We learn so much from our industry friends, mentors, and contacts. It often helps us avoid pitfalls and mistakes that they have made along the way—some of which we were headed right for!” YOUR THOUGHTS? 1. Which components of the communication process are most likely to create noise among Skinfix employees? Between employees and customers? 2. What most impresses you about Skinfix’s approach to transparency? Explain. FIGURE 9.3 Selecting the Right Medium for Effective Communication Low Complexity of problem/situation Overload zone (medium provides more information than necessary) Oversimplification zone (medium does not provide necessary information) Face-to-face Interactive media (telephone, videoconference) Personal media (memos, letters, personal e-mail, voice mail, texts, social media) Impersonal media (newsletter, bulletins, reports, general e-mail) Zo ne of e� ect ive co mm un ica tio n R ic hn es s of c om m un ic at io n m ed iu m Lean Rich High SOURCES: Daft, Richard L., and Robert H. Lengel. “The Selection of Communication Media as an Executive Skill.” Academy of Management Perspectives 2, no. 3 (August 1998): 225–32. https://doi.org/10.5465/ame.1988.4277259; and Daft, Richard L., and Robert H. Lengel. Information Richness: A New Approach to Managerial Behavior and Organization Design. Texas: Texas A & M University, 1983. Organizational Behavior: A Practical, Problem-Solving Approach 343Communication in the Digital Age CHAPTER 9 3. Type: Personal media such as phone calls and interpersonal speech are richer than impersonal media such as memos and group e-mails. 4. Language source: The natural body language and speech in a face-to-face conversation provide a richer medium than the numbers in a financial report. Complexity of the Situation Situations can range from low to high in complexity. Low-complexity situations are routine and predictable, such as a manager updating employ- ees on last month’s sales or calculating someone’s paycheck. Highly complex situations, such as a corporate reorganization or merger, are ambiguous, hard to analyze, and often emotionally charged. Picking the Right Medium A two-way face-to-face conversation is the richest form of communication. It provides immediate feedback and allows participants to observe multi- ple cues such as body language and tone of voice. Use face-to-face in situations that are complex or that are highly important to receivers. In contrast, telephone conversations and videoconferencing are not as informative as face-to-face exchanges even though they are relatively high in richness. For example, webinars and WebEx presentations are well suited for disseminating information, but we can say from experience that they are not as good for ensuring the messaging has been understood. At the other end of the complexity scale, newsletters, reports, and general e-mail blasts are lean media and best for less com- plex situations. E-mail and social media messages vary in media richness: leaner if they impersonally blanket a large audience, and richer if they mix personal textual and video information that prompts quick conversational feedback.12 We conclude this section by noting that people have preferences for communicating in different media. Research on individual differences identified the following trends: • Improving the level of media richness reduces the cost of information search and increases the number of options consumers consider when making choices.13 • Managers, not coworkers, can influence the media richness perception held by employees, particularly when it comes to e-mail messages.14 • Employees targeted by coworkers’ negative workplace gossip are less likely to dem- onstrate appropriate work behaviors.15 The photo on the right represents a less complex situation than the one on the left. Speaking to a group of employees in an open forum is more complicated because the speaker has no idea what people might ask or how they might respond to the message. How would you suggest managers prepare for an open forum meeting? (left): wavebreakmedia/Shutterstock; (right): LWA/Larry Williams/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 344 PART 2 Groups 9.2 COMMUNICATION COMPETENCE Although there is no universally accepted definition of communication competence,  it is a performance-based index of an individual’s abilities to effectively use commu- nication behaviors in a given context.16 Are you curious about your level of communication competence? Is it low, medium, or high? Find out by completing Self-Assessment 9.1. If your score is lower than you prefer, find ideas in the chapter for improving your interpersonal communication skills. Identify the key aspects of interpersonal communication. LO 9-2 Let’s consider four key communication skills that affect your communication competence: • Nonverbal communication • Active listening • Nondefensive communication • Empathy Sources of Nonverbal Communication Nonverbal communication  is communication without words. According to communi- cation experts “it includes observable behaviors such as facial expressions, eyes, touching, and tone of voice, as well as less obvious messages such as dress, posture, and spatial dis- tance between two or more people.”17 Nonverbal communication adds flavor to oral communication. That is, it helps you understand the attitudes and emotions of those with whom you are speaking, which in turn helps you more accurately interpret their message.18 THE BIGGER PICTURE Communication competence is your ability to effectively communicate with others. Knowing that recruiters look for communication skills in college graduates, you’ll be happy to learn that you can improve these skills. You will learn how you can use nonverbal communication, active listening, nondefensive communication, and empathy to enhance your communication competence. Assessing Your Communication Competence Please be prepared to answer these questions if your instructor has assigned Self-Assessment 9.1 in Connect.  1. Are you happy with the results? 2. Based on your scores, what are your top three strengths and your three biggest weaknesses? 3. How might you use your strengths more effectively in your role as a student? 4. How might you improve on your weaknesses? SELF-ASSESSMENT 9.1 CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 345Communication in the Digital Age CHAPTER 9 Let’s consider four key sources of nonverbal messages: • Body movements and gestures. • Facial expressions. • Touch. • Eye contact. Body Movements and Gestures Body movements, such as leaning forward or backward, and gestures provide nonverbal information that can either enhance or detract from the communication process. Open body positions, such as leaning backward or ges- turing with palms facing up, communicate immediacy, a term used to represent openness, warmth, closeness, and availability for communication. A recent study suggested that the use of gestures can help in the process of learning and comprehension in both adults and children.19 Defensiveness is communicated by gestures such as folding arms, crossing hands, crossing legs, or pointing at others. Touch Touching is another powerful nonverbal cue. People tend to touch those they like. Research reveals that women do more touching during conversations than men.20 Touching conveys an impression of warmth and caring and can help create a personal bond between people. Be careful about using touch with people from diverse cultures, however, because norms for touching vary significantly around the world. Facial Expressions Facial expressions convey a wealth of information. Smiling, for instance, typically represents warmth, happiness, or friendship, whereas frowning conveys dissatisfaction or anger. Are these interpretations universal? A summary of relevant research revealed that the association between facial expressions and emotions varies across cul- tures.21 A smile, for example, does not convey the same emotion in different countries. Be careful when interpreting facial expressions among diverse groups of employees. Eye Contact Eye contact is a strong nonverbal cue that varies across cultures. Western- ers are taught at an early age to look at their parents when spoken to. In contrast, Asians are taught to avoid eye contact with a parent or superior in order to show obedience and subservience.22 Once again, you need to be sensitive to different orientations toward main- taining eye contact with diverse employees. Practical Tips Here is our advice for improving your nonverbal communication skills. Body movements, gestures, and speech • Lean forward to show the speaker you are interested. • Don’t display slumped shoulders, downward head, flat tones, or inaudible voice, all of which convey indecisiveness or lack of confidence. • Don’t speak too fast or too slowly. Your tone of voice should match the tone of the message. • Use paraphrasing as a mechanism to check on communication accuracy. Paraphrasing  is restating what someone else has said or written. Facial expressions like these can reveal the emotions behind a message, but they are easily misinterpreted. Which of these facial expres- sions suggest happiness, worry, and anger? (left to right): Jack Hollingsworth/Blend Images LLC; liza54500/Shutterstock; Aaron Amat/Shutterstock; SensorSpot/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 346 PART 2 Groups Facial expressions • Nod your head to show you are listening or that you agree. • Smile and show interest. • Don’t close your eyes or tense facial muscles. Eye contact • Maintain eye contact and don’t look away from the speaker. Listening Listening  is the process of actively decoding and interpreting verbal messages. It requires cognitive attention and information processing; simply hearing does not. There is general consen- sus that listening is a cornerstone skill of commu- nication competence. In studies that support this conclusion, active listening made receivers feel more under- stood. It also led people to conclude that their conversations were more helpful, sensitive, and supportive.23 Clearly, active listening yields pos- itive outcomes. Unfortunately, many of us think we are good listeners when evidence suggests just the opposite. For example, researchers estimate that typical listeners retain only 20 to 50 percent of what they hear.24 Why do you think we miss or lose so much of what we hear? One reason is that we have the cogni- tive capacity to process words at a much higher rate than people speak. This means our cognitive processes are being underutilized, leading to daydreaming and distractions. Noise is another reason. A third reason, and one you can control, is your motivation to listen and your listening style. It takes effort to actively listen. You won’t be a better listener unless you are motivated to become one. What’s Your Listening Style—or Styles? You can improve your communication competence by understanding your typical listening style. There are four styles:25 1. Active—I’m fully invested. Active listeners are “all in.” That is, they are motivated to listen and give full attention when others are talking. They focus on what is being communicated and expend energy by participating in the discussion. They also use positive body language, such as leaning in or making direct eye contact, to convey their interest. 2. Involved—I’m partially invested. Involved listeners devote some, but not all, of their attention and energy to listening. They reflect on what is being said and halfheartedly participate in the discus- sion. Their use of nonverbal cues tends to be inconsistent or intermittent, and they can show non- verbal signs of interest and noninterest in the same conversation. 3. Passive—It’s not my responsibility to listen. Passive listeners are not equal partners in a speaking– listening exchange. They assume the speaker is responsible for the quality of the interaction and believe their role is to passively take in information. Passive listeners will display attentiveness, but they can fake it at times. Overall, they don’t expend much motivation or energy in receiving and decoding messages. 4. Detached—I’m uninterested. Detached listeners tend to withdraw from the interaction. They appear inattentive, bored, distracted, and uninterested. They may start using mobile devices during the speaking–listening exchange. Their body language will reflect lack of interest, such as slumping and avoiding direct eye contact. Which of the four styles do you tend to use? Do you consistently use one or two styles, or does your style vary from one situation to the next? You can answer these questions by taking Self-Assessment 9.2. As children, we all were instructed to listen. However, many adults seem to suffer from poor listening skills. Why is this? For one, it takes effort and motivation to be a good listener. To communicate and perform better, we would all benefit from investing more effort into listening more effectively. Luis Molinero/Shutterstock Organizational Behavior: A Practical, Problem-Solving Approach 347Communication in the Digital Age CHAPTER 9 Assessing Your Listening Style Please be prepared to answer these questions if your instructor has assigned Self-Assessment 9.2 in Connect.  1. Based on your results, how would you classify your style? 2. Are you surprised by the results? 3. Identify three things you can do to improve your listening skills. SELF-ASSESSMENT 9.2 CAREER READINESS Becoming a More Effective Listener Effective listening is a learned skill that requires effort and motivation. It comes down to paying attention to the content of the message. The suggestions in Table 9.1 can increase your listening skills at school, home, and work. Researchers have now begun to study an emerging dimension of listening called social listening, which pertains to how we communicate and listen to others using social media and communication technologies that influence our personal engagement with others. The increase in constant interaction brought about by social media and mobile devices appears to be changing the way we react to stimuli (for example, social media posts, comments, and likes) and listen and respond to messages.26 TIP EXPLANATION Show respect. Give everyone the opportunity to explain his/her ideas without interrupting. Actively try to help the sender convey his or her message. Listen from the first sentence. Turn off your internal thoughts and mentally put aside whatever you were thinking about prior to the interaction. Be mindful. Stay in the moment and focus on the sender. Don’t try to figure out what the speaker is going to say. Keep quiet. Use your ears more than your mouth, and try to follow the 80/20 rule. That is, your conversation partner should speak 80 percent of the time and you should speak 20 percent. Ask questions. Asking questions helps you clarify what is being said, unlocks learning, and improves interpersonal bonding. Paraphrase and summarize. Paraphrasing repeats back to someone what you believe you just heard him or her say. Summarizing consolidates an entire conversation. Both these techniques enhance communication accuracy because they help to ensure messages are being understood correctly. Remember what was said. Either take notes or make an effort to log critical information into your mental computer. Involve your body. Use nonverbal cues to demonstrate interest and involvement. TABLE 9.1 Tips for Effective Listening SOURCES: Brooks, Alison Wood, and Leslie K. John. “The Surprising Power of Questions.” Harvard Business Review, June 2018. https://hbr.org/2018/05/the-surprising-power-of-questions; Altman, Ian. “The Most Successful Entrepreneurs Possess This One Crucial Skill.” Forbes Media, LLC, April 18, 2017. https://www.forbes.com/sites/ianaltman/2017/04/18/the-most-successful- entrepreneurs-possess-this-one-crucial-skill/#61d4f4b25d67; and Keyser, John. “Active Listening Leads to Business Success.” Association for Talent Development. https://www.td.org/magazines/td-magazine/active-listening-leads-to-business-success. Organizational Behavior: A Practical, Problem-Solving Approach 348 PART 2 Groups Nondefensive Communication Nondefensive communication occurs when you ask questions and make statements in an open and neutral manner. Using this approach helps the communicator gather accurate information and speak in an even- tempered tone without jumping to conclu- sions that may inf lame the situation. Nondefensive communication also helps individuals gain the respect of their col- leagues and others in an organization while strengthening personal and professional rela- tionships. For example, if one of your cowork- ers acts upset, you could simply state an observation by asking the person, “Are you angry about something?” This neutral ques- tion will allow the person to explain his or her emotions without getting more upset or blaming others for the situation.27 Defensiveness  occurs when people perceive they are being attacked or threatened. Our “first responder” to defen- siveness is the brain’s amygdala. A neurosci- ence expert noted the amygdala “accesses emotional memories that identify a given stimulus as potentially threatening and trig- gers the emotional fear response that sets the fight-or-flight biobehavioral response in motion.”28 This reaction leads to defensive listening and destructive behaviors such as shutting down or being passive-aggressive, standing behind rules or policies, creating a diversion, or counterattacking. Moreover, defensiveness from one person activates a similar response in the other party. All told, defensiveness from either party in an exchange fosters the exchange of inaccurate and inefficient communication.29 You may be surprised to learn that defensiveness is often triggered by nothing more than a poor choice of words or nonverbal posture during interactions. In the language of behavior modification, these triggers are antecedents of defensiveness. For example, using absolutes like “always” or “never” is very likely to create a defensive response. Try to avoid using absolutes because they are rarely true. Instead, you can increase your communica- tion competence by avoiding the defensive antecedents and employing the positive ante- cedents of nondefensive communication shown in Table 9.2. Connecting with Others via Empathy We first mentioned empathy in Chapter 3 when discussing the components of emo- tional intelligence. Although researchers propose multiple types of empathy, the gen- eral consensus is that empathy  represents the ability to recognize and understand another person’s feelings and thoughts.30 It is a reflective technique that fosters open communication. Being empathetic requires two key actions. The first is mindfulness. Empathy neces- sitates that we place our attention on the feelings and emotions being displayed both ver- bally and nonverbally by others. The second action is to incorporate our understanding of another person’s feelings and thoughts into our communications. This will lead us to use language that fits the receiver’s perspective. Have you ever been in an auto accident? If yes, then you likely have intimate knowledge of defensiveness. In situations like this, one person often tries to blame the other while both defend themselves. Which toward-defensive styles in Table 9.2 on the next page are likely to occur in such situations? Tom Merton/age fotostock Organizational Behavior: A Practical, Problem-Solving Approach 349Communication in the Digital Age CHAPTER 9 TOWARD DEFENSIVENESS TOWARD NONDEFENSIVENESS Style Example Style Example Evaluative “Your work is sloppy.” Descriptive “Your work was two days late.” Controlling “You need to . . .” Problem solving “What do you think are the causes of the missed deadline?” Strategizing “I’d like you to agree with me during the meeting so that we can overcome any challenges.”  Straightforward “Vote your conscience at the meeting. You can agree or disagree with my proposal.”  Neutral “Don’t worry about missing the deadline. It’s no big deal.” Empathetic “I sense disappointment about missing the deadline. Let’s figure out how we can get back on schedule.”  Superior “Listen to me; I’ve worked here 20 years.”  Equal “Let’s figure out the causes of the missed deadline together.” Certain “We tried this idea in the past. It just doesn’t work.”  Honest and open Using I-messages: “I am angry about the way you spoke to the customer because our department looked unresponsive.” TABLE 9.2 Antecedents of Defensive and Nondefensive Communication SOURCES: Gibb, R. Jack. “Defensive Communication.” Journal of Communication 11, no. 3 (September 1961): 141–48. https://doi.org/10.1111/j.1460-2466.1961. tb00344.x; and “Reach Out: Effective Communication.” Sunday Business Post, April 14, 2013. Empathy leads to more effective communication and interaction because people feel heard. It also sends the message that we care about others. For example, a recent study of audiotaped performance appraisal interviews revealed that managers’ empathetic communication styles were positively related to employees’ intentions to change or improve their performance and to employees’ perceptions of their supervisors’ likeability.31 British entrepreneur Maurice Ostro offers some advice on the importance of empathy in the OB in Action feature. British entrepreneur Maurice Ostro runs his family’s gem company, Ostro Minerals, and Entrepreneurial Giving, a network he founded for entrepreneurs who donate some of their profits to charity. Convinced that empathy is good for business, Ostro offers this advice:32 • Maintain a purpose beyond profit. Align it with your values and make it part of every day. • Write that purpose down. Encourage employees to do likewise. • To keep productive employees and loyal customers, “tell everyone . . . about what you’re doing for those around you.” Says Ostro, “Research shows that employees at a purposeful company can be up to three times more productive.” • Connect with like-minded people. YOUR THOUGHTS? 1. Do you agree that empathy is good for busi- ness? Why or why not? 2. Can you think of any other contexts in which empathy could be useful? Discuss. Empathy Is Good for Business OB in Action Organizational Behavior: A Practical, Problem-Solving Approach 350 PART 2 Groups 9.3 GENDER, GENERATIONS, AND COMMUNICATION Assume you are about to work with someone who made the following statement during a strategic planning meeting. “I’m not on board with the direction this decision is going. . . . No, I’m not finished. I won’t back down from this position, and I’m not going to commit my team and resources to this project until we have more conclusive evidence to work with. Period.” What is your impression of this person? Would it be different if the speaker’s name were Mary rather than Mark? A team of researchers examined this question and found that women who disagreed in a forceful manner like this were evaluated more negatively than men.33 This result held for both male and female evaluators. Let’s consider two explanations. The first is implicit cognition, or bias, which was discussed in Chapter 4. Implicit cog- nition consists of any thoughts or beliefs that are automatically activated from memory without our conscious awareness. It causes us to make biased decisions without realizing we are doing so.34 Lawyer and former First Lady of the United States Michelle Obama commented about this bias by noting, “No country can ever truly flourish if it stifles the potential of its women and deprives itself of the contributions of half of its citizens.”35 The second explanation is linguistic styles. Deborah Tannen, a communication expert, defines linguistic style as follows: Linguistic style  refers to a person’s characteristic speaking pattern. It includes such features as directness or indirectness, pacing and pausing, word choice, and the use of such elements as jokes, figures of speech, stories, questions, and apolo- gies. In other words, linguistic style is a set of culturally learned signals by which we not only communicate what we mean but also interpret others’ meaning and evalu- ate one another as people.36 You can see how linguistic style helps explain communication differences between women and men and across generations. This section will increase your understanding of interpersonal communication across age and gender barriers. Communication Patterns between Women and Men There are two competing explanations about the origin of linguistic styles between men and women. Some researchers believe interpersonal differences between women and men are due to inherited biological differences between the sexes. This perspective, also called the evolutionary psychology or Darwinian perspective, attributes gender differences in communication to drives, needs, and conflicts associated with reproductive strategies used by women and men. The second perspective, social role theory, suggests that girls and boys are taught to communicate differently. Here is what these explanations suggest about male and female communication patterns.37 The Male Perspective Males are expected to communicate more aggressively, interrupt others more than women, and hide their emotions because they have an inherent desire to possess features attractive to females. Men also see conversations as negotiations in which people try to achieve and maintain the upper hand. Thus they feel it is important to protect Explain how gender and age affect the communication process. LO 9-3 THE BIGGER PICTURE Women and men have communicated differently since the dawn of time. So do people from varying generations. You can improve your communication competence by understanding and accommodating communication differences among men and women and various genera- tions. This section will help you in this pursuit. Organizational Behavior: A Practical, Problem-Solving Approach 351Communication in the Digital Age CHAPTER 9 themselves from others’ attempts to put them down or push them around. This perspective increases a male’s need to maintain independence and avoid failure.38 Although males are certainly not competing for mate selection during a business meeting, evolutionary psycholo- gists propose that men cannot turn off the biologically based determinants of their behavior.39 The Female Perspective According to social role theory, females and males learn ways of speaking while growing up. Research shows that girls learn conversational skills and habits that focus on rapport and relationships, whereas boys learn skills and habits that focus on status and hierarchies. Accordingly, women come to view communication as a network of connections in which conversations are negotiations for closeness. This ori- entation leads women to seek and give confirmation and support more than men.40 What Does Research Reveal? Research demonstrates that women and men com- municate differently in a number of ways.41 Women are more likely to share credit for suc- cess, to ask questions for clarification, to tactfully give feedback by mitigating criticism with praise, and to indirectly tell others what to do. According to The Wall Street Journal, women also are “more likely to add qualifiers (‘I’m not sure, but . . .’) and apologies (‘I’m sorry to interrupt, but . . .’). When complimented on her work, a woman is more likely to downplay it, saying she was ‘lucky.’”42 These tendencies allow women to be interrupted more than men when communicating with others.43 In contrast, men are more likely to boast about themselves, to bluntly give feedback, to withhold compliments, to ask fewer questions, and to avoid admitting fault or weaknesses. Generational Differences in Communication As discussed in Chapter 4, today’s workplace often includes people from four different generations—traditionalists, baby boomers, Gen Xers, and Millennials—with Gen Zers also start- ing to make their mark. (Refer to Table 4.3 for additional details and characteristics.) Among the challenges in this scenario is the fact that different generations prefer different media, as discussed above, and they have different expectations and norms about communication. The Role of Digital Devices When it comes to communication media, Millennials and Gen Xers are more likely to love their digital devices than boomers and traditionalists. Millennials were brought up with instant messaging and texting and prefer these media over phone calls, letters, and reports. Several professional sports teams, including the NFL’s Arizona Cardinals, acknowledge these trends and are making accommodations in managing their operations and players. Women are more likely to be interrupted during this meeting attended by a group of global employees. What can women do to ensure that their voices are heard and not overrun by others during a meeting? oneinchpunch/Shutterstock Organizational Behavior: A Practical, Problem-Solving Approach 352 PART 2 Groups To help his Millennial players get their “social media fix,” Cardinals coach Kliff Kingsbury recently announced he planned to allow cellphone breaks during team meet- ings. According to Kingsbury, the breaks will come every 20 minutes—or sooner—if he sees players starting to lose interest in the meetings. “They’re itching to get to those things,” Kingsbury said. “We’ll let them hop over there and then get back in the meeting and refocus.” The Cardinals are not the only team making changes to address the popu- larity of digital devices. Baseball’s Toronto Blue Jays recently passed a team rule restrict- ing the amount of time players can play the popular video game “Fortnite,” which seems to be keeping some team members from getting enough rest.44 Communication Expectations and Norms Younger employees also are more likely to use the Internet and social media to accomplish their work tasks. However, advances in communication technology, along with scammers, have changed the approach businesspeople of all ages use to call prospective clients on the phone. According to recent research, almost 50 percent of all phone calls are robo-called cold-calls from companies that are either real or fake. Thus, the act of cold-calling compa- nies to seek new business may no longer be a viable communications strategy. In fact, the invention of voice mail significantly reduced the effectiveness of trying to communicate with potential clients via phone because it is no longer easy to get through to a key deci- sion maker within any organization.45 Other more effective communication strategies regardless of whether you’re a Millennial, Gen Zer, or Boomer may include seeking recommendations or referrals from current customers about potential new clients and e-mailing the prospects directly; net- working with industry organizations and other professional groups; communicating through business or company accounts on social media such as Facebook, Twitter, Pinterest, or Instagram; and redesigning company websites to focus on selling products and services and signing up potential clients through the use of online newsletters, podcasts, sales discounts, and other business opportunities.46 Improving Communications between the Sexes and Generations It’s unwise to generalize any trends, preferences, or perceptions to all men, all women, or all members of a particular generation. Some men, for instance, are less likely to boast about their achievements, while some women are less likely to share the credit. Some traditionalists embrace technology and new communication practices, while not all Millennials are techno- logical whizzes. There are always exceptions to the rule. In recognition of that fact, here are some suggestions that can enhance your communication competence: • Clarify communication expectations and norms. If your manager fails to discuss these, bring the topic up. It’s better to understand expectations than to guess wrong. After all, you are the one who will lose if people form negative perceptions about your communication skills and patterns. • Use a variety of communication tools. Regardless of your preferred mode of commu- nication (such as face-to-face or texting), employees from all generations should use a variety of media according to the circumstances. This avoids alienating any par- ticular generation. • Be aware of implicit bias. Don’t assume, based on somebody’s gender or age, that he or she only likes one mode of communication. If you find males interrupting, gently call them out. If someone is quiet in a meeting, ask for his or her opinion. • Make sure people get credit for their ideas and not their gender. Sometimes a woman will propose an idea in a meeting and it’s not acknowledged until a man offers the same suggestion later in the discussion. Researchers recently confirmed this sce- nario when study results revealed that a bump in status and leader recognition as a result of speaking up with ideas only happened for men, not women.47 Organizational Behavior: A Practical, Problem-Solving Approach 353Communication in the Digital Age CHAPTER 9 Social media  use web-based and mobile technologies to generate interactive dialogue with members of a network. Social media are now woven throughout the fabric of our lives. Their use affects many subjects covered in this book, highlighting the importance of communication as an OB topic. Social media are now used by a sig- nificant proportion of people across all age groups (see Figure 9.4 for utilization rates by age).48 These figures suggest that employers and managers are wise to utilize social media tools with employees of all generations. A communications expert put it this way: A social media policy should apply to all platforms, and ultimately everything employees post on line. Some employees may believe that while they use LinkedIn and Twitter for business purposes, they use Facebook for personal use and can, therefore, post indiscriminately. However, they are still company representatives, and inappropriate posts may damage their employer’s brand, as well as their own.49 9.4 SOCIAL MEDIA AND OB THE BIGGER PICTURE Employers are continually challenged to reap the benefits of social media while controlling the costs. Your own knowledge and behavior are part of the solution. In this section, you’ll expand your understanding of how to use social media productively, the cost of social media, the effective use of e-mail, and ways to manage issues related to social media policies, privacy, and etiquette.  Describe how using social media can increase your effectiveness at work. LO 9-4 FIGURE 9.4 Age Distribution at the Top Social Networks SOURCE: Marketing Charts. “Social Networking Platforms’ User Demographics Update 2018. Marketing Charts LLC.” Accessed June 19, 2019. https://www.marketingcharts.com/digital/social-media-82642. 18–24 25–29 30–49 50–64 64+ LinkedIn WhatsApp 0 20 40 60 80 100 Pinterest Facebook Twitter Instagram YouTube Snapchat U.S. Data, Users Aged 18 and Over, March 2018 Organizational Behavior: A Practical, Problem-Solving Approach 354 PART 2 Groups The same applies to you and other employees. Everyone needs to realize the benefits and avoid the pitfalls of social media. To do this, let’s begin our discussion with what experts and researchers say about the effects of social media on productivity. Social Media and Increased Productivity A driving force behind the use of all forms of technology at work, including social media, is to boost productivity. The key for employees, managers, and employers is to harness the potential and enhance performance at the individual, group, and organizational levels. The following quotation articulates this argument: [W]ork is becoming a place to collaborate, exchange ideas, and communicate with colleagues and customers. Your value as an employee will be determined not only by how well you perform your job but also by how much you contribute your knowl- edge and ideas back to the organization. The ways in which companies develop this culture of collaboration will become a significant competitive factor in attracting and engaging top talent in the twenty-first century.50 Social media is clearly a tool that can help both you and your employers realize these pro- ductivity benefits. Employee Productivity Evidence is mounting that social media provides a host of benefits for employees, such as • Increased job satisfaction and better work–life balance.51 • Performance and retention.52 • More creativity and collaboration.53 Two studies of thousands of employees even showed that those who used five or more social networking sites had higher sales numbers than those who used only one to four.54 This implies that more is better for salespeople! While you should be careful about drawing broad conclusions from these findings, they are revealing. Furthermore, if you think employees’ opinions matter, you’ll be interested in a study by Microsoft showing that 46 percent of employees across generations and industries felt social media tools would make them more productive at work.55 LinkedIn, for example, is far more than an online résumé-hosting site. It is cur- rently the key professional networking tool for job search. Recent surveys reveal that as many as 92 percent of recruiters use social media for hiring purposes, and, as Figure 9.5 shows, 77 percent use LinkedIn, 63 percent use Facebook, and 25 percent use Instagram, especially Millennial recruiters and those working at technology companies.56 This means that more than three-quarters of job recruiters are using LinkedIn, and you likely use it yourself. The following Applying OB box provides guidance on optimizing LinkedIn for you. Another productivity benefit of social media is that they make digital information searchable. This capabil- ity can reduce the time employees spend trying to retrieve needed information by as much as 35 percent. What would you do with 35 percent more time in a day, month, or year?60 Finally, consider that many of social media’s benefits for employees translate into benefits for their employers. Employer Productivity Companies of all sizes and industries believe in the benefits of social media. Domino’s, for example, gets more than 80 percent of FIGURE 9.5 Percentage of Recruiters Who Use Various Social Media 25% 63% 77% 200 Instagram Facebook LinkedIn 10060 8040 Organizational Behavior: A Practical, Problem-Solving Approach 355Communication in the Digital Age CHAPTER 9 its sales through digital channels. The company enjoys a strong reputation as a leader in making the customer experience seamless and launched its digital ordering tools more than a decade ago. In addition to real-time tracking of orders on any mobile device, the company uses Dom the Pizza bot to allow customers to order on Facebook Messenger, Amazon’s Alexa, Twitter, Apple Watches, Android Wear, and Samsung Smart TVs.61 If deployed effectively, social media enable businesses to realize the many benefits outlined in Table 9.3. Crowdsourcing  occurs when companies invite nonemployees to contribute to achieving particular goals and manage the input process via the Internet. Integra Gold Corp, a mining company based in Canada, illustrates the benefits of utilizing tal- ent and resources outside the organization to meet goals. The company acquired a firm with mineral rights and six terabytes of geological surveys used to prospect for gold. Applying OB • Think in terms of quality, not quantity. It’s not a scoreboard. Make connections that are meaning- ful to you professionally.  • Don’t invite people to your network blindly, and don’t accept invitations without first learning why they reached out and how the connection might be relevant. • Connect beyond your current industry and pro- fessional sphere. Drawing on diverse views is a key way to expand your own knowledge and grow. • Use the personal note option for inviting others to connect. • When inviting others, focus only on making the connection. Other business can wait. • Be a good connection for others. Respond to mes- sages and write recommendations for and endorse those whose skills you can confidently promote.59 Build a Reputation. You need to offer value to others, which in turn earns you trust and respect. This requires genuine thought and attention to what you post. • Be a resource for others by liking (means “thanks”), commenting on (means you’re interested), or sharing (means you think others also will benefit) relevant information within your network. • Always explain why you are sharing or liking content. • Avoid controversy, criticism, and complaints. If you can’t resist doing this, then don’t use LinkedIn. It can torpedo your reputation. To use LinkedIn effectively you need to:57 Build a Professional LinkedIn Profile. This is only the first step, but it is essential to your success. • Focus all sections (summary and experience) to reflect your growth over time and your responsi- bilities in your current job.  • Consider writing your summary and experience sections in the first person and telling a story instead of using bullet points. Describe what you’ve accomplished and what you can do for other employers. (Include the past but don’t dwell on it—include more about what you do today.) • Learn and use the appropriate keywords. LinkedIn’s search function is effective and recruiters use it extensively. Learn what they are looking for and be sure to include these words in your profile, and in your headline as well. • Spend the time necessary. Although obvious, think of what you want to achieve with your LinkedIn profile. Also, think of your profile as a living web page, something that evolves over time. Explain how your past experiences helped shape who you are today.58 Build a LinkedIn Network. Simply building a profile doesn’t mean recruiters (or anybody else) will view it. You need to actively and wisely build and engage your connections. Some helpful pointers and etiquette follow:  How to Optimize LinkedIn CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 356 PART 2 Groups Integra crowdsourced the analyses of this data instead of hiring people and managing the work itself. It is offering a prize of $811,000 to whoever finds the next multimillion- ounce gold deposit.62 The OB in Action box describes how other well-known companies now use social media to innovate and solve problems using crowdsourcing. TABLE 9.3 Social Media Benefits for Employers BENEFIT DESCRIPTION Connect in real time over distance Employees, customers, communities, suppliers, prospective talent, and many others can communicate as needed and while work is being completed. Collaborate within and outside the organization Linking sources of knowledge is a means for realizing the potential of employee diversity and enhancing productivity. Social media is by definition a way of connecting people virtually, so its effective implementation benefits virtual teamwork. Expand boundaries Social networks can become critical means for organizational innovation and effectiveness, allowing them to utilize knowledge, skills, and experience of people outside (not employed by) the organization. SOURCE: McFarland, Lynn A., and Robert E. Ployhart. “Social Media: A Contextual Framework to Guide Research and Practice.” Journal of Applied Psychology 100, no. 6 (2015): 1653–1677. https://dx.doi.org/10.1037/a0039244. Lego Ideas is an official Lego website where fans submit original ideas for new products, via written descriptions and photos or 3D renderings. Ideas must draw 100 supporters within 60 days and then 10,000 within the next two years. Winners are cho- sen three times a year; their designers earn 1 per- cent of the toy’s net revenue. Two recent winners are a Steamboat Willie replica and the Central Perk coffee shop from the TV series “Friends.”63 The fifth winner of Frito-Lay’s “Do Us a Flavor” crowdsourcing challenge, which let customers sub- mit ideas for new potato chip flavors for a $1 million prize, is Crispy Taco. The company will also produce runners-up Fried Tomato and Everything Bagel with Cream Cheese. Frito-Lay hasn’t ruled out the possi- bility of a sixth round.64 YOUR THOUGHTS 1. Describe at least two ways you crowdsource, including reading product recommendations on social media. 2. Identify a service you use or some element of your job that could benefit from crowdsourcing. Focus on how others can help you solve prob- lems, which requires more than just soliciting their opinions. Expanding Organizational Boundaries with Crowdsourcing at Lego, Frito-Lay OB in Action Costs of Social Media Lost productivity due to cyberloafing—using the Internet at work for personal use—is a primary concern for employers in their adoption of social media. Some studies put the cost at $85 billion per year and report that employees spend 60 to 80 percent of their time at work pretending to do actual or legitimate work.65 How do employees waste time on social media? • 50 percent are talking on a cell phone or texting. • 39 percent are surfing the Internet. Organizational Behavior: A Practical, Problem-Solving Approach 357Communication in the Digital Age CHAPTER 9 • 38 percent are on social media. • 23 percent are sending personal e-mail.66 Perhaps the biggest problem with such productivity losses is that employees rarely think about them. Have you ever thought you were cheating your employer by check- ing Facebook, sending a tweet, or booking a trip during work hours? Did you ever think the message you sent a friend about work might be shared and give a competitor an advantage? Then there is shopping online while at work. A recent survey by Careerbuilder found that on average 53 percent of workers planned to shop online while at work, with nearly 50 percent of them using their personal mobile devices. And it seems the greater access you have to technology at work, the more likely you are to use it to shop—68 percent of IT workers said they were likely to shop online while at work.67 The following Problem-Solving Application regarding fantasy football highlights the magnitude of the problem. A Very Expensive Fantasy Fantasy sports are a well-entrenched phenomenon. Tens of millions of people play, and many of them do so at work. Here are some statistics:68 1. The U.S. Bureau of Labor Statistics (BLS) esti- mates that employers should expect to lose approximately one hour of work per week for each employee who plays fantasy football. 2. The Fantasy Sports Trade Association estimates that approximately 57.4 million people in the United States and Canada play fantasy football. 3. About two-thirds of those players are employed full time, and BLS data indicates they earn an average of almost $26 an hour. 4. Given all that, the estimated price tag for pro- ductivity lost to fantasy football was close to $17 billion in 2016. For comparison, consider that the real-world NFL took in only a little more than $13 billion in revenue that same year. Challenger, Gray & Christmas is the research firm that compiled the data on productivity lost to the distractions of fantasy sports leagues. However, its CEO, John Challenger, says there may be a plus side to all the time spent on the game, namely that— unlike online shopping or reading and writing posts on Facebook—it does get coworkers talking to each other and perhaps even helps them collaborate bet- ter at work. Creativity and morale may also get a boost, says Challenger.69 Assume you own a business and know many of your employees play in a fantasy league. Does this information change your attitude about access to and use of social media at work? Why or why not? What would you do in this situation? Problem-Solving Application Apply the 3-Step Problem-Solving Approach Step 1: As a business owner, define the problem posed by employees playing fantasy football at work. Step 2: Identify potential causes of the problem. Step 3: As the owner, make your recommendations to remedy or at least reduce the problem defined in Step 1. Organizational Behavior: A Practical, Problem-Solving Approach 358 PART 2 Groups Let’s explore the pros and cons of e-mail next. Make E-mail Your Friend, Not Your Foe E-mail is not only one of the most useful communication tools but also one of biggest drains on your productivity. Recent research suggests that the average business profes- sional spends nearly 30 percent of the work day reading and answering mail—which translates into close to 3 hours a day reading, writing, and responding to e-mail messages.70 If we add in some amount of nonwork e-mail, the time it consumes is truly immense! In addition, analyzing more than 52,000 e-mails at a mid-sized company, researchers found that employee communication patterns could potentially pinpoint employees who were experiencing disengagement and job burnout.71 Most people acknowledge that e-mail is essential, but handling it effectively can make it your friend instead of your foe. See Table 9.4 for tips on managing e-mail. Social Media Concerns and Remedies— What Companies and You Can Do Of course some employees waste time. This has been and always will be true. But when it comes to social media, more than half of U.S. employers now block employees’ access to social media sites at work.72 However, evidence is growing that this strategy can backfire. Be Careful about Blocking Access Banning access can damage employee morale and loyalty—potentially leading to even greater losses in productivity. Some experts argue, and most employees would agree, that small breaks during the workday help boost produc- tivity. Such breaks can take the form of going outside to get a breath of fresh air, talking with a colleague over a cup of coffee, checking personal e-mail or Facebook, or checking and sending tweets.73 TABLE 9.4 Tips for Managing E-mail TIP DESCRIPTION Set aside a specific time each work day to read and respond to e-mails. Don’t leave your e-mail open all day. Alerts can interrupt workflow and cause distraction. Use the 80-20 rule. Prioritize 20% of your e-mails and defer the other 80%. Make decisions and respond imme- diately to e-mails that require a brief response. If it takes less than 1 minute to answer an e-mail, make a decision and send a response. Realize you don’t need to reply to every e-mail. Sometimes no reply after a certain period of time can be considered a reply. Unsubscribe from sources you don’t read. If you find yourself routinely deleting e-mails from news alerts, e-mail subscriptions, and other sources—unsubscribe. Organize your inbox with folders and categories. Prioritize, sort, and file messages to keep your inbox organized. Stop checking work e-mails at all hours. Your brain needs time to decompress and rejuvenate—break the habit of checking your work messages at night, on weekends, and on the way to work in the morning. SOURCE: Chua, Celestine. “11 Simple Tips to Effective Email Management.” Lifehack. https://www.lifehack.org/articles/productivity/11-simple-tips-effective-email- management.html. Organizational Behavior: A Practical, Problem-Solving Approach 359Communication in the Digital Age CHAPTER 9 If these reenergizing benefits of social media breaks are not convincing enough for you or your employer, consider other potential and undesir- able results of the blocking policies: • They could alienate employees. Young, old, or in between, many people are accus- tomed to being plugged into social sites throughout the day. Blocking their access can be off-putting. Moreover, organizations can block access on company devices, but most people have smartphones, tablets, and other devices of their own. As a result, many employees continue their typical use of social media but simply do so on their own devices—still on company time. • You can’t have it only one way. If employers expect employees to be connected and responsive 24/7 to work-related e-mails, such as those from managers, coworkers, clients, or suppliers, it seems only fair to also allow them to reasonably tend to their own business during work hours. This is especially true if employees work both within and outside prescribed hours (such as at home in the evenings or on weekends). • Blocking suggests a lack of trust. As one tech business reporter put it: “Banning social media may send a message to your employees that you don’t trust them. . . . This can cause a sharp divide in the team atmosphere you want to create.”74 It is difficult to manage and influence others without trust, and one of the basic ways of gaining trust from others is to trust them first. In 2019, more than two dozen states either have passed or have pending legislation to prevent employers from demanding passwords and access to employees’ social networking sites.75 Whether an organization will consider adopting such practices depends in part on leaders’ social media attitudes. Phubbing and FOMO Acts of unconscious bias, or microaggressions, include a num- ber of seemingly tiny but repeated actions, like interrupting others, mispronouncing or mistaking someone’s name, avoiding eye contact, or phubbing. Phubbing is the act of phone snubbing or ignoring those around us in order to pay attention to a mobile phone. The urge to phub others springs from the fear of missing out—FOMO—or being out of touch with something happening in our social network.76 This is a growing phenomenon, although research shows that conversations are actually less satisfying for both parties when interrupted by a person’s texting.77 A recent study found that employees who were phubbed by their manager felt they could no longer trust that person to keep promises or treat them fairly, which led to nega- tive effects on their psychological preparedness to work and, predictably, on their job sat- isfaction and job performance.78 Phubbing tends to be more common among younger people, who are more intimately connected to their phones, and among men, who view interruptions as less onerous than women do.79 Even if unused, a cell phone on the table can make people feel less connected to those they are with.80 Phubbing doesn’t have to keep happening, however. The phubbed should calmly explain how they feel, and phubbers should use empathy to understand the harm their microaggression is doing to their com- munications and their relationships with others.81 Psychologists have demonstrated that FOMO causes anxiety. A recent study examined college students’ anxiety levels after giving up their phones for an hour. Light users of smart- phones experienced no increases in anxiety, while moderate users showed signs of increased anxiety after 25 minutes without a phone. These levels of anxiety stayed steady for the remaining time of the hour-long study. Heavy users, in contrast, revealed heightened anxiety after only 10 phone-free minutes, and their level of anxiety increased over time.82 Although companies must protect their own interests when it comes to blocking employee access to social media and other websites, many experts warn the costs of blocking access could be larger than the benefits. LDProd/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 360 PART 2 Groups FOMO is exacerbated by our habits, such as paying attention to our phones during sleep hours. One study found that 40 percent of students reported waking at night to answer phone calls, and 47 percent woke to answer text messages. Psychologists demon- strated that “people of all generations seem to have succumbed to the phenomenon.”83 Assess and Manage Leadership’s Social Media Attitudes Consider the social media readiness of an organization to which you belong. Self-Assessment 9.3 helps you assess leadership’s attitude toward social media, such as: • How supportive management is of creating communities. • How well the culture fosters collaboration and knowledge sharing. • How widely social media is used to collaborate. With this knowledge you can determine how well your own attitudes fit with those of the organization, and it may even unveil opportunities for you to improve the organiza- tion’s readiness. Assessing Social Media Readiness Please be prepared to answer these questions  if your instructor has assigned Self-Assessment 9.3 in Connect. 1. Which of the dimensions has the highest score? 2. What are the implications for employees/members? 3. What are the implications for the organization and its interactions with stakeholders other than employees/members? 4. Which dimension is the lowest? 5. Describe two things that could be done to improve the organization’s social media readiness. SELF-ASSESSMENT 9.3 If the attitudes you find are not as positive as you would like, have no fear. Attitudes can be changed. Favorable leadership attitudes open the door to developing and imple- menting productive social media policies. Adopt a Social Media Policy As the use of social media continues to grow, esti- mates suggest more than 80 percent of U.S. companies now have a formal social media policy, and 70 percent of these firms report taking disciplinary action against an employee for violating these policies.84 A social media policy should describe the who, how, when, and for what purposes of social media use, and the consequences for non- compliance. One way to avoid social media missteps is to create, communicate, and enforce effective social media policies as outlined in Table 9.5. The OB in Action box describes the Coca-Cola Company’s social media policy. Privacy Any discussion of the effective use of social media by employees or their employers must include privacy issues. People and companies have reputations, which are built over time and can be extremely consequential professionally. They can also be damaged in a variety of ways, with serious consequences including loss of employment or business, social stigma, embarrassment and stress, lost opportunities, and, of course, legal action.86 Organizational Behavior: A Practical, Problem-Solving Approach 361Communication in the Digital Age CHAPTER 9 TABLE 9.5 Eight Elements of an Effective Social Media Policy ELEMENT DESCRIPTION Create safe channels for employees to air their concerns before going online. The key words here are safe and before. Conflicts happen, but managers and organizations should provide means by which employees’ concerns are reported and handled without retaliation so they don’t feel the need to take them to the Internet. Clarify what is confidential. Clearly explain what information employees can and cannot share online. Providing an approval process for the release of information may help too. Outline consequences for violations. Make it known that employees can be held responsible for what they post (such as videos of undesirable behavior on the job or in company uniform), and list the consequences. Designate a spokesperson for online policies. You don’t want every employee fielding questions about company policies; identify a spokesperson(s) so interpretations and communications are consistent. Discuss appropriate ways to engage others online. It is typically a poor idea to have any and all employees responding to others’ comments about the company online. Instruct them to be polite and nonconfrontational, and then to notify the designated person to respond. Explain what is considered illegal. It is illegal to divulge proprietary information and to violate trademarks and copyrights. The organization is responsible for educating employees on these matters. Align social media policy with the organization’s culture. Your company’s social media policy is a great place to reaffirm what you want your company culture to be, while conveying your stance on this serious topic. Educate employees. It’s not enough to have a social media policy; it is necessary to educate and train people about it and to embed it in social media practices. (The author, for instance, could not locate a social media policy, or a person responsible for it, at his university.) SOURCES: Carter, Rebekah. “Your Guide to Creating a Social Media Policy.” Sprout Social, Inc., October 18, 2018. https://sproutsocial.com/insights/social-media- policy/; PowerDMS. “Six Elements of a Good Social Media Policy.” Accessed June 19, 2019. https://www.powerdms.com/blog/six-elements-good-social- media-policy/; and Thomson, Jimmy. “How to Write a Social Media Policy for Your Company.” Hootsuite Inc., May 22, 2018. https://blog.hootsuite.com/social- media-policy-for-employees/. The Coca-Cola Company formulated its policies with the motive to “guide your participation in social media, both personally as well as when you are act- ing in an official capacity on behalf of the Company. It is critical we always remember who we are—the world’s largest beverage company, refreshing con- sumers with more than 500 sparkling and still brands—and what our Company’s role is in the social media community—to inspire moments of optimism and happiness and build our brands. The same con- siderations that apply to our messaging and commu- nications in traditional media still apply in the online social media space, including on what you might consider ‘internal’ platforms.”85 “Have fun, but be smart. Use sound judgment and common sense, adhere to the Company’s values, and follow the same Company policies that you follow in the offline world. . . .” “Whether you are Coca-Cola’s Online Social Media Principles OB in Action Organizational Behavior: A Practical, Problem-Solving Approach 362 PART 2 Groups Social media privacy becomes even more elusive given that better than 60 percent of employees report they are connected to at least one coworker and over 40 percent with an immediate supervisor.87 Employees are especially concerned about employers having access to personal e-mails and attachments, voice mail, text and instant messages, lists of apps on their devices, information in their mobile apps, and their location.88 What can employers do? Here are some recommendations: 1. Communicate what personal information from mobile devices is accessed by the employer. 2. Be sure employees understand what is accessible depending on the operating system used on their device (Apple or Android). 3. Create and communicate clear and sensible policies regarding potential employer actions regarding information on employees’ mobile devices. 4. Do all of this when employees are setting up their devices, which is when they are most likely thinking about and can do something about such matters. 5. Tell employees that anything on the company’s e-mail server is saved for legal purposes. 6. Use the available privacy controls.89 What Can You Do to Protect Yourself and Your Personal Brand (Reputation)? First consider the recommendations above and other things you’ve learned in this chapter. You also may be well served to keep the arenas of your life separate in cyberspace, at least to the extent possible. Establishing and maintaining multiple accounts, and using discre- tion about what you post, can be quite a challenge. But think of the potential implications— your reputation and your job! If you don’t know what your company’s policy is, ask. The author of this book did so and was told by its IT director that the university knew which porn websites were being viewed at the fraternity houses. Social Media Etiquette Before leaving this section we want to raise the issue of “appropriate use.” Norms of acceptable social media behavior at school, work, and socially are evolving, and it pays to be mindful of them. Cellphones Because they are like extensions of our hands, cellphones are with us every- where, at dinner, at work, in class, in bed, and in the bathroom. But that doesn’t mean it is okay to use them in every situation. an authorized Company spokesperson or not, when you’re talking about our Company, our brands, or our business on your personal social networks, keep in mind that: 1. Our Company’s Information Protection Policy, Insider Trading Policy, and other policies still apply. 2. You are responsible for your actions. We encour- age you to get online and have fun, but use sound judgment and common sense. 3. You are an important ambassador for our Com- pany’s brands, and you’re encouraged to pro- mote them as long as you make sure you disclose that you are affiliated with the Company. How you disclose can depend on the platform, but the disclosure should be clear and in proximity to the message itself. 4. When you see posts or commentary on topics that require subject matter expertise, such as ingredients, obesity, the Company’s environ- mental impacts, or the Company’s financial per- formance, avoid the temptation to respond to these directly unless you respond with approved messaging the Company has prepared for those topics. When in doubt, contact your local Public Affairs and Communications director. 5. Be conscientious when mixing your business and personal lives; be sure to know your work group’s policies regarding personal use of social media at work or on Company devices.” YOUR THOUGHTS? 1. What are two benefits you see in Coca-Cola’s social media policy? 2. What gaps do you notice, based on your experi- ences with social media at work and what you’ve studied in this chapter? Organizational Behavior: A Practical, Problem-Solving Approach 363Communication in the Digital Age CHAPTER 9 Here’s a good test: The next time you pull out your phone, for instance, during dinner at a restaurant or when visiting with a friend, ask yourself, Is what I’m doing or looking at going to enhance my interaction with the other person here and now? If it isn’t, don’t risk being rude—put the phone away. Videoconferencing Skype, FaceTime, and other services are growing in popularity every year. They provide far richer communication than texts, e-mails, or even phone calls. From an employer’s perspective they also save on travel costs. But effectively communicat- ing on camera is quite different from doing so in other media. Videoconferencing has its own code of conduct for participating in meetings, as well as for interviewing for a job. The Applying OB box provides some tips for successful video interviews. Now let’s move beyond social media and learn about how to deliver killer presenta- tions, conduct crucial conversations, and manage up. Applying OB not at your own image on the screen. Don’t move around too much but lean forward a little to show interest and eagerness. 5. Remember this is a real, serious interview. The employer is investing time and energy; you should too. Be energetic and positive about your interest in the organization. Speak clearly and don’t rush. Remember to ask the questions you prepared. 6. Cover the basics. As in an interview situation, thank the interviewer for his or her time, reiterate your interest, and ask when and how you should follow up. Video interviews are increasingly common among companies screening job candidates. They can save time and travel costs for the company and the appli- cant, and they convey more information than tele- phone interviews. Suppose you’ve applied for a job and will be interviewed via Skype. How will you pres- ent yourself at your best and most professional? Here are some tips.90 1. Prepare as you would for any job interview. Learn as much as you can about the company, its structure, its mission and goals, and the position that’s open. Prepare a few specific questions to ask. 2. Select a quiet place with a well-lighted, unclut- tered background. Be sure you won’t be inter- rupted; tell family or roommates the time and expected duration of the interview, keep pets out of the room, and put away your phone. 3. Make the most of Skype’s features. Select an appropriate profile picture and a professional- looking profile that matches your resume, and line up any documents, like your portfolio or work sam- ples, that you may want to share during the call. Check in advance that your equipment and set- tings are all in order and obtain the employer’s Skype username. 4. Dress the part from head to toe, not just from the waist up. This will increase your confidence. Avoid bright colors, loud prints, and noisy or shiny jewelry and accessories. If you wear makeup, con- sider using a little more than usual. To look the interviewer in the eye, gaze straight at the camera, Acing a Skype Interview With video interviews becoming more common, job seekers need to prepare for them as if they are interviewing in person. andreypopov/123RF CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 364 PART 2 Groups 9.5 COMMUNICATION SKILLS TO BOOST YOUR EFFECTIVENESS Some jobs require you to present regularly and others never. How well you present can greatly affect others’ perceptions of you and your professional opportunities. We devote this section to practical skills to help make you a more effective presenter. Improving your presentation skills is always valuable, given that relatively few people are truly at ease or actually enjoy speaking or presenting to a group. Presenting—Do You Give Reports or Do You Tell Stories? You should probably start by answering the question in the above heading. Reports are packed with data and information and can be exhausting in their detail. Stories, in con- trast, are short in all these elements but are rich in emotion and help the presenter connect with the audience. As you learned earlier, different communication media are better than others for any given message. The challenge for you is to know what your audience wants and needs, and then to construct and deliver your presentation accordingly. It generally is more effective if you present your message more as a colorful story with emotion than as a detail-laden report. The people who organize the TED (Technology, Education, Design) talks have a five-step protocol they use to guide their presenters to deliver with impact.91 Step 1. Frame your story. Step 2. Plan your delivery. Step 3. Develop your stage presence. Step 4. Plan your multimedia. Step 5. Put it together. Let’s consider these steps in more detail. Step 1—Frame Your Story Think of your presentation as a journey and decide where you want to start and end. Consider what your audience already knows about your subject, start there, and quickly explain why it matters to you or why it should matter to them. Include only the most relevant details or points and try to bring them to life with examples. Don’t try to do too much. Don’t just skim over all possible points either, but instead pick the best and dive deeper into each of those. Beware of jargon, boasting, and mind- numbing details. Plan to end your journey with a solution, or even with a question to spur audience engagement and give them something to think about afterward. Explain how communication skills can increase your effectiveness. LO 9-5 THE BIGGER PICTURE Presenting, crucial conversations, and managing up—master these communication skills, and they will enhance your performance and career success throughout your life. These individual- level process skills make you more effective when working with others and influence a host of outcomes at both the individual and group levels in the Organizing Framework for OB. Organizational Behavior: A Practical, Problem-Solving Approach 365Communication in the Digital Age CHAPTER 9 For example, you have learned about and applied a 3-Step Problem-Solving Approach throughout this book. Perhaps your presentation might be structured similarly—what is the problem, what are potential causes or explanations, and what is your recommenda- tion for action. Step 2—Plan Your Delivery There are three basic ways to deliver a talk: 1. Read it from a script. 2. Use bullet lists that outline what you will cover in each section. 3. Memorize everything you wish to say and REHEARSE. Reading generally is ineffective. You will almost cer- tainly lose your connection with the audience, if you ever connect in the first place. (TED forbids presenters to read.) Memorizing can work, if your audience is expected to simply sit and listen, but it takes a tremendous amount of time and practice. Unless you have your presentation completely ingrained in your memory, your audience can easily realize you are not as prepared as you hoped. If you use the bullet list approach, be sure you know not only the content for each point, but also how you want to transition from one to the next. Step 3—Develop Your Stage Presence Getting your story or message right is more important than the way you stand or whether you appear nervous. Nevertheless, beware of how much you move—not too much or too little. If you’re really nervous, pay particular attention to your lower body to prevent rocking or shifting from one leg to the other. Walking around is fine, if it is natural for you. But if it is not, then you may be well served to stand in particular spots for different lengths of time or when making certain points. The nonverbal communication pointers you learned earlier in this chapter are helpful too. Your body aside, the most important element of stage presence is eye contact! Find a handful of friendly faces around the room and deliver your talk while looking them in the eyes. We cannot learn about pre- senting without addressing public speaking head-on. The following Applying OB box provides sugges- tions. When combined with the TED protocol, it should help you overcome your nervousness and light up the room. As for nervousness, there are many ways to help overcome this, and many of them you’ve learned in this book. For instance, what you learned about self-efficacy in Chapter 3 can be especially helpful, and preparation is a critical element in building your efficacy. But perhaps one of the most useful things you can do to overcome nervousness is to realize that people expect you to be nervous. Don’t make too much of it. Amy Cuddy is a social psychologist who studies body language. She argues that the way we hold and present ourselves affects the way others perceive us and the way we perceive ourselves. Astrid Stawiarz/Getty Images Journalist and women’s rights activist Gloria Steinem delivers a talk at the Watermark Conference for Women. Note her use of hand gestures and eye contact with her audience. Both of these nonverbal communication elements are important in developing a stage presence. Marla Aufmuth/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 366 PART 2 Groups Applying OB match your audience. Don’t wear a suit or dress to a construction site, or construction boots to pres- ent a keynote at a conference. Be sharp but don’t wear anything that will cause people to comment. You want to exude confidence but not generate fodder for the next TMZ episode. 5. Unshackle yourself. If possible, and it is most often possible, lose the podium. Too often presenters shackle themselves to the podium, which is a physical barrier between you and the audience and ties you to one spot. Have you ever seen an excellent presentation and thought it would have been better still if the speaker had stayed behind the podium? Of course not.  6. Be funny if you can, but don’t try too hard. Every- body likes to be funny, and when it works and is appropriate it’s great, but when it doesn’t it can be disastrous. Don’t try too hard, but if you have something that you are confident will work with the audience, use it. 7. Be gracious. Thank the host, the audience, and the organization that invited you. Even if the con- tent of your presentation will change their lives, it nevertheless is your privilege to have the oppor- tunity to do so. Express your gratitude. The noted poet Maya Angelou once said, “I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”92 When you speak in public, remem- ber that as in any conversation, you want your listeners to feel something. Here are some additional tips:93 1. Remember they are rooting for you. The audience most often is on your side and hopes you give a good presentation, if for no other reason than that they don’t want to sit through a bad one.  2. Know your audience.  You don’t have to be an expert on your audience or know everything they know. However, know enough to make a few mean- ingful, audience-specific comments and show that you care and your insights are relevant for them. 3. Compliment the audience. Building on No. 2, make your audience feel special by acknowledging what they do and its importance. For instance, if talking to a group of executives, tell them they’ve worked very hard and accomplished a lot. Or, if their jobs are espe- cially difficult and uncelebrated, such as nurses or teachers, acknowledge this and tell them how impor- tant their work is and how much it’s appreciated. 4. Be snazzy, not distracting. Your clothes, jewelry, and any other accessories should be neat and How to Dazzle the Crowd—Tips on Public Speaking Step 4—Plan Your Multimedia Don’t feel compelled to use the latest and greatest tech- nology, or any technology at all. But whatever you choose, keep it simple and don’t let it dis- tract the audience. If photos or images are appropriate, use them. People respond differently to pictures and videos, which convey emotional content better than words. However, if you use video clips, try to keep them to 60 seconds or less to prevent losing people’s attention. PowerPoint continues to be widely used, although more sophisticated programs with scaling features—zoomable user interfaces or ZUIs—are also gaining popularity. Regardless of what presentation program you use, be sure to limit the number of words per slide; make sure the font is big enough for easy reading from the back of the room; and don’t read the slides out loud for your audience. While they read the slide’s wording, provide some additional commentary or insight about the idea presented.94 Step 5—Put It Together Be prepared far enough in advance; think weeks if possible, not days, hours, or minutes. If you practice in front of others, which is a good idea, be selective. Anybody in the practice audience role will feel compelled to give you feedback, but you need valuable feedback, not just any feedback. Preparation aside, remember to focus on the framing and substance of your journey and don’t get too wrapped up in the other steps and details. If you don’t think you have a compelling story, go back to the drawing board and create one. Lastly, be yourself. Use these steps as a guide and learn from them, but don’t try to copy somebody else. CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 367Communication in the Digital Age CHAPTER 9 Crucial Conversations “Crucial conversations  are discussions between two or more people where (1) the stakes are high, (2) opinions vary, and (3) emotions run strong.”95 Such conversations can and do occur in all arenas of your life—school, work, and socially. Examples of relevant occasions include: • Ending a relationship. • Talking to a coworker or classmate who behaves offensively. • Giving the boss or a professor feedback. • Critiquing a classmate or colleague’s work. • Asking a roommate to move out. • Talking to a team member who isn’t keeping commitments. • Giving an unfavorable performance review.96 Recall what you learned in Chapter 6 related to feedback, because it also is very help- ful with most crucial conversations. The consequences of these encounters can be enormous for your job and career. Handling difficult communications effectively can prevent problems, motivate teams members, increase collaboration, and improve bottom- line results.97 When confronted with high-stakes interactions, you have three choices—avoid them, face them and handle them poorly, or face them and handle them well. We’ll focus on the last one. But first let’s explore why people often do so poorly in crucial situations, and it will also serve as a bit of review of things you’ve learned already. When It Matters Most, We Often Do Our Worst Joseph Grenny, who cowrote the book Crucial Conversations, said this: “When conversations turn crucial, most of us toggle between some form of silence or verbal violence: Either we withdraw from sharing our information or try to force it on others by raising our voice or overstating our point. Ironically, when it matters the most we do our very worst.”98 Our negative emotions (see Chapter 3) kick in, and the fight-or-flight response takes over. Moreover, crucial conversations often happen unexpectedly, which means we typically are unprepared. When this happens, again, negative emotions can dominate and self- efficacy decline. Research supports this observation. According to a recent survey of more than 1,300 employees, one of three managers is unable to handle high-stakes, high pressure situations, which leave their teams less successful in business situations.99 Knowledge on positive emotions and positive OB can help you in crucial situa- tions. Specifically, a good way to prepare for crucial conversations is to foster your own positive state. Then you can use the STATE technique, described next, to conduct your crucial conversations more effectively. STATE: How to Be Effective When It’s Crucial The acronym STATE will help you address even the most difficult conversa- tions with a plan or path to follow. • Share your facts. Start with the least controversial, most persuasive ele- ments that support what you want for yourself and for the relationship. • Tell your story. Enhance what you want by describing what has happened, how you’ve arrived where you are, how Many of your important conversations with coworkers, friends, and classmates are full of emotions. Applying some of the communication skills and tools described in this chapter can help you improve the outcomes of crucial and high-stakes conversations. Bananastock/Alamy Stock Photo Organizational Behavior: A Practical, Problem-Solving Approach 368 PART 2 Groups you’d like to see it change, and why. It may help to add what you don’t want personally or for the relationship. • Ask for others’ facts and stories. This is key to creating dialogue, which is essential if you’re to have a productive crucial conversation. Don’t talk at but instead talk with others. Approach all crucial conversations as two-way exchanges. Don’t be accusa- tory, but instead simply describe the situation, the way you feel, and what you would like to see happen. Use “I” instead of “you.” • Talk tentatively. Keep in mind that you’re telling a story, not stating facts. The facts come first, then you can add “color” or describe the impact on you via your story. In other words, don’t pound the podium and talk like you’re “preaching” facts. • Encourage testing. Make it safe for others to share their (opposing) views. Allow them to share or test their ideas, thoughts, and feelings. Don’t interrupt, steamroll, or intimidate. It is critical to maintain mutual respect during crucial conversations. One way to do this is to explain and focus on mutual purpose—what you both stand to gain. Be sure the other person respects you in order to avoid defensiveness (recall what you learned earlier in this chapter) and conflict. If it’s appropriate, apologize to get back on track.100 Managing Up You learned in Chapter 6 about more contemporary forms of feedback (such as 360 degree), and that knowledge is helpful here. We are going to build on that and on crucial conversations to give you some guidance on how to manage your boss. Gauge Receptiveness to Coaching Many organizations now claim they believe in the merits of employee involvement and feedback, even upward feedback. Note that translat- ing these values into action requires skill. For example, an HR professional was promoted to a senior position with little previous experience dealing with senior management. She focused on doing her new job well but failed to build strong relationships with her bosses, leaving her with few supporters in the executive suite. When the company went public, she “got taken out by a wave I didn’t see coming,” while the rest of the company’s management team kept their jobs.101 The outcome might have been different had she learned to manage her bosses. The place to begin managing up is by assessing your manager’s receptiveness. Regardless of your organization’s policy or comments from senior leadership, if your manager is not receptive, you’re wise to put your efforts elsewhere.102 You can’t coach a boss who doesn’t want to be coached. To gauge receptiveness, you can:103 1. Learn your manager’s view of you coaching. What are his or her expectations? What are yours? 2. Explain what’s in it for him or her. 3. Ask for permission to provide coaching or feed- back. For instance, “Would you mind if I share a different perspective, one that might help us solve the problem?” 4. Find out how best to deliver criticism. Learn where, when, and how your manager wants to hear criticism— in the moment, in private, via e-mail, face-to-face, or another way. 5. Ask for agreement and commitment. After the first two items in this list, confirm that your boss is interested. What to Do Next If your boss is receptive to upward feedback, follow the steps in Table 9.6. If your boss is not A boss who is receptive to coaching is especially valuable. Be careful, however: Don’t assume because you may appreciate coaching from your boss that she or he will appreciate coaching from you. Gauge your boss’s receptiveness first. Roberto Westbrook/Blend Images LLC Organizational Behavior: A Practical, Problem-Solving Approach 369Communication in the Digital Age CHAPTER 9 receptive, or you’re preparing for your first real job in the workplace, read the table any- way. It provides helpful insight for managing others and helping others manage you. We conclude this section with words of wisdom from Dana Rousmaniere, a contribu- tor to the Harvard Business Review series on managing up: The most important skill to master is figuring out how to be a genuine source of help—because managing up doesn’t mean sucking up. It means being the most effective employee you can be, creating value for your boss and your company. That’s why the best path to a healthy relationship begins and ends with doing your job, and doing it well.104  TABLE 9.6 How to Manage Up Steps Description Step 1—Prepare your message. Unlike crucial conversations that often happen in the moment, attempts to manage up or coach your boss are an agreed-upon arrangement that occurs over time. Therefore, use time to your advantage and prepare. • Know what you want to accomplish. • Support your points with examples, data, or other evidence. Step 2—Plan your delivery and tactics. Plan the delivery of your message—the tone and choice of words that will most likely achieve your desired result. Role-playing is a very valuable practice tool—use it! Step 3—Deliver. When conducting the coaching conversation, be sure you know the right way to discuss problems with your boss: • Be sensitive. Your boss has feelings just like you, and just as you don’t like to get hammered with comments about how horrible and disappointing you are, neither does your boss. • Don’t generalize behavior. Speak to specific areas of your boss’s job, specific behaviors, and specific situations. • Provide ideas or suggestions in a polite and helpful manner. Don’t introduce your ideas as if they are the only ones that will work, or use language like “you must” or “you should.” Step 4—Follow up.  Coaching and managing both consist of more than simply providing feedback. Follow up to see how your boss has been doing in the areas discussed. Establishing a trusting relationship with your boss may position you as the “go-to” person who can pick up the slack when needed. SOURCES: Shellenbarger, Sue. “The Right and Wrong Way to Manage Up at the Office.” The Wall Street Journal, April 10, 2018. https://www.wsj.com/articles/the-right-and-wrong-way-to-manage-up-at-the-office-1523366792; Reynolds, Justin. “What Does It Mean to Manage Up?” TINYPulse, March 14, 2017. https://www.tinypulse.com/blog/what-does-it-mean-to-manage-up; Rosenthal, Michael. “Last Word: Constructive Criticism for Managers.” Lakewood Media Group, LLC. https://trainingmag.com/content/ last-word-constructive-criticism-managers/; and Patton, Carol. “Coaching Up.” Lakewood Media Group, LLC. https://trainingmag. com/content/coaching/. Organizational Behavior: A Practical, Problem-Solving Approach 370 PART 2 Groups 9.6 MAKING THE CONNECTION: HOW CAN I BECOME A MORE EFFECTIVE COMMUNICATOR? Takeaways for Me Here are six things you can do to turn this chapter’s lessons into positive change in your personal and professional life. 1. Communication is a perceptual process—what we say is not always what people hear: Always be on the lookout for misinterpretations in your communications. 2. You can improve your communication competence: Follow the advice presented in Section 9.2. 3. Miscommunication is likely to occur between men and women and across genera- tions: Be sensitive to these differences and try to modify your communication accordingly. 4. The pervasiveness of social media means that to distinguish yourself, you need to be bet- ter than the rest: Learn how to use services such as LinkedIn like the pros; the time and effort will make a difference in your job and career. 5. Learn your employer’s social media policies, and regardless of what you learn, you may be wise to keep your digital worlds separate: Make appropriate use of mobile devices; don’t be rude or embarrass yourself or others. 6. You are always presenting when communicating. The only things that differ in a formal presentation are the number of people, the context, the objective, and the medium: These are skills—learn, practice, improve! Takeaways for Managers There are eight key implications for managers. 1. It is easy to encounter miscommunication because communication is a perceptual process: To overcome this, try paraphrasing and summarizing what others communicate to ensure you are getting the intended message. 2. Your choice of communication medium needs to match the complexity of the situation: You can improve your communication by considering this requirement when choosing the best way to communicate with others. 3. Be aware of the linguistic differences between men and women: Failure to appreciate these nuances can lead to inaccurate attributions and conclusions about others. 4. Assess how social media can boost your productivity and that of those you manage. Learn specifically which forms help you and how. Also learn how workplace productiv- ity is lost via social media: Collaborate with your employees to generate policies that are both reasonable and legally defensible. Then communicate these policies and expected practices. Describe the implications of communication in the digital age for you and managers. LO 9-6 THE BIGGER PICTURE Effective communication helps individuals, groups, and organizations achieve their goals. Here are some key points to consider. Organizational Behavior: A Practical, Problem-Solving Approach 371Communication in the Digital Age CHAPTER 9 5. Get a handle on your e-mail as a way of boosting your productivity: Part of your solution may be to use other technology, but another part is certainly being aware of your own behaviors and using discipline. 6. Always be mindful of social media privacy. 7. Learn about and build your skills related to crucial conversations: These are critical for your success when managing both down and up. 8. Model the communication behaviors, including use of social media, you expect from those you manage: Your own behavior is one of your most powerful means for influencing others. Organizational Behavior: A Practical, Problem-Solving Approach 372 PART 2 Groups You learned that you can become a more effective communicator by understanding communication as a process that operates at all levels of the orga- nization. You learned about the differences and similarities between genders and generations, as well as the benefits and costs of social media. You also explored how the proper approach to com- munication can allow you to manage up to higher levels in the organization and how to prepare for crucial conversations. Reinforce your learning with the Key Points below. Then consolidate your learn- ing using the Organizing Framework. Challenge your mastery of the material by answering the Major Questions in your own words. Key Points for Understanding Chapter 9 You learned the following key points. 9.1 BASIC DIMENSIONS OF THE COMMUNICATION PROCESS • All communication involves a sender, mes- sage, and receiver. • Noise has many sources and types and can interfere with communications. • Media richness varies from rich to lean and helps convey information and promote under- standing. It is influenced by feedback, channel, type, and language source. • Choosing the appropriate medium is critical for effective communication. 9.2 COMMUNICATION COMPETENCE • Communication competence refers to an indi- vidual’s ability to effectively use communica- tion behaviors in a given context. • Nonverbal communication is a component of effective communication and includes many potential elements, such as body movements and gestures, touch, facial expressions, and eye contact. • Listening is the process of actively decoding and interpreting verbal messages. Four common listening styles are active, involved, passive, and detached. • The feeling of being attacked or threatened is the cause of defensive communication. • Empathy, the ability to recognize and under- stand another person’s feelings and thoughts, is an important communication skill. 9.3 GENDER, GENERATIONS, AND COMMUNICATION • Linguistic style is a person’s characteristic speaking pattern. • Women and men communicate differently. Women are more likely to share credit and ask clarifying questions, and men are more likely to give blunt feedback and withhold compliments. • Each generation has its own communication norms and preferences. • It’s a mistake to generalize anything we know about communication and apply it to entire genders or generations. 9.4 SOCIAL MEDIA AND OB • Social media can increase employee and employer productivity. • The use of social media at work also has many costs, some potentially significant. • E-mail can increase teamwork and flexibility and reduce costs of paper and the distribution of information. But it also has costs: decreased pro- ductivity, information overload, and increased time and money to organize, store, and monitor.  • Social media policies help outline what is expected and what is off limits. They also help guard employers against liability and undesir- able events. What Did I Learn? Organizational Behavior: A Practical, Problem-Solving Approach 373Communication in the Digital Age CHAPTER 9 process. We explored a host of inputs, both per- son factors (nonverbal communication, active lis- tening, empathy, communication skills, and social media behaviors) and situation factors (choice of communication medium, HR policies, and social media practices of your manager and coworkers). You learned that communication links to out- comes across the three levels of OB. At the indi- vidual level, communication relates to task performance, work attitudes, citizenship behav- ior/counterproductive behavior, turnover. Com- munication also is related to group/team performance, group satisfaction, and group cohe- sion and conflict. Finally, communication influ- ences organizational outcomes such as accounting/financial performance, customer satis- faction, innovation, reputation, and legal liability. Challenge: Major Questions for Chapter 9 You should now be able to answer the following questions. Unless you can, have you really processed and internalized the lessons in the chapter? Refer to the Key Points, Figure 9.6, the chapter itself, and your notes to revisit and answer the following major questions: 1. How can knowing about the basic communi- cation process help me communicate more effectively? 2. What key aspects of interpersonal communi- cation can help me improve my communica- tion competence? 3. How do gender and age affect the communi- cation process? 4. How can social media increase my effective- ness at work and in my career? 5. How can I increase my effectiveness using presentation skills, crucial conversations, and managing up? • Organizations need to monitor and manage privacy in the digital space. Individuals must monitor and manage their personal brand (their reputation) and their employer’s. • Mobile technology etiquette is evolving. Dif- ferent contexts and different technologies come with different norms and expectations. 9.5 COMMUNICATION SKILLS TO BOOST YOUR EFFECTIVENESS • Effective presenters are more likely to tell stories than give reports. It is helpful to frame your story, plan the delivery, develop stage presence and multimedia, and put it all together. • Crucial conversations are those between two or more people in which the stakes are high, opinions vary, and emotions run strong. • Managing up is more effective if you gauge your manager’s receptiveness, ask permis- sion to provide feedback/input, prepare your message, plan your delivery and tactics, and follow up. 9.6 HOW CAN I BECOME A MORE EFFECTIVE COMMUNICATOR? • Recognizing that what we say is not always what people hear will allow you to fine-tune your approach to communications. • Learning to master social media will help you distinguish yourself in a good way and possi- bly further your career. • Choosing the right communication medium to match the complexity of each situation will help improve your communication skills. The Organizing Framework for Chapter 9 As shown in Figure 9.6, communication is a key individual-, group/team-, and organizational-level Organizational Behavior: A Practical, Problem-Solving Approach 374 PART 2 Groups FIGURE 9.6 Organizing Framework for Understanding and Applying OB ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. INPUTS PROCESSES OUTCOMES Person Factors • Nonverbal communication • Active listening • Nondefensive communication • Empathy • Ethical behavior • Social media behaviors (an individual employee) • Communication skills Situation Factors • Choice of medium • HR policies (hiring and firing) • Social media practices (managers and coworkers) Individual Level • Communication Group/Team Level • Communication Organizational Level • Communication • HR policies (social media policies) Individual Level • Task performance • Work attitudes • Turnover Group/Team Level • Group/team performance • Group satisfaction Organizational Level • Accounting/financial performance • Customer satisfaction • Innovation • Reputation • Legal liability Organizational Behavior: A Practical, Problem-Solving Approach 375Communication in the Digital Age CHAPTER 9 United Airlines is one of the world’s largest airlines serving 353 destinations across five continents. The Chicago-based carrier has approximately 92,000 employees and earned more than $41 billion in reve- nue in 2018.105 Oscar Munoz started as United’s CEO in 2015, and by March 2017 was named “Communica- tor of the Year” by PRWeek. Unfortunately, he fell from grace a month later due to United’s botched response to a flight-related incident.106 Let’s consider how United communicated about the incident. SUNDAY, APRIL 9: CHAOS ON FLIGHT 3411 A fully booked United flight 3411 was preparing to depart from Chicago to Louisville when gate agents realized that four airline crew members needed to get to Louisville. The gate agents asked for four volunteers to give up their seats in return for compensation. No one accepted United’s offer because the flight was the last one to Louisville that evening. United then decided to enact an “involuntary de-boarding situation,” in which four random passengers were directed to deplane. Three of the passengers deplaned without incident. The fourth, Dr. David Dao, refused, saying “I can’t get off the plane. I have to get home. I’m a doctor. I have to get to the hospital in the morning,” according to The Sentinel News.107 United employees responded to Dao by contacting the Chicago Department of Aviation Security. A scuffle broke out between the officers and Dao when they tried to forcibly remove him from the plane, resulting in a concussion, broken teeth, a broken nose, and other injuries for Dr. Dao. The bloodied image of Dr. Dao was posted on social media and rapidly spread around the world.108 MONDAY, APRIL 10: UNITED’S INITIAL RESPONSE A series of communication blunders transpired the next day: • United released a statement apologizing for the “overbook situation.” The airline would later back- track and clarify that the flight was not actually overbooked, and passengers were removed to make space for United employees. • CEO Munoz released a public statement on Twitter calling the incident an “upsetting event,” but did not address the treatment of passenger Dao. He apologized to the passengers who were involuntarily deplaned but called their removal “re-accommodation.”109 According to Sean Czarnecki of PRWeek, the word “re-accommodate” was then “lodged in the Internet lexicon as a United Airlines euphemism for brutally assaulting your customers.”110 • CEO Munoz sent an internal letter to United employees blaming Dr. Dao for what happened, calling him “disruptive and belligerent.” He also stated that he fully supported his employees’ han- dling of the situation.111 The internal letter quickly became public, which flamed the negative publicity. News outlets compared videos of a bloodied and bruised passenger being dragged off an aircraft with United’s defensive, un-empathetic, written responses.112 The result was outrage on social media with thousands of flyers signing a petition demanding Munoz’s resignation. Many also called for a boycott of United, whose slogan of “Fly the Friendly Skies” was tarnished by the incident.113 In fact, a survey conducted by Morning Consult found that nearly half of the respon- dents said they would pick a more expensive, longer flight to avoid giving United their business.114 TUESDAY, APRIL 11: UNITED CHANGES COURSE A turbulent day on Wall Street kicked off after United’s initial response to the incident. The airline started the morning losing nearly $1 billion in stock value. Munoz responded by releasing another written statement. This time he struck a different tone and took “full responsibility” for the episode and said that Dr. Dao should not have been “mistreated” the way he was. The airline also pledged to conduct a review and quickly release findings. Although the statement helped reduce the stock’s slide, United still closed the day down around $250 million.115 WEDNESDAY, APRIL 12: MUNOZ APPEARS ON TV On Wednesday morning, Munoz utilized another medium of communication by appearing on ABC’s “Good Morning, America.” His body language was PROBLEM-SOLVING APPLICATION CASE United’s Turbulent Communications Strategy Organizational Behavior: A Practical, Problem-Solving Approach 376 PART 2 Groups D. To refine your choice, ask yourself, Why is this a problem? Focus on topics in the current chapter, because we generally select cases that illustrate concepts in the current chapter. STEP 2: Identify causes of the problem by using material from this chapter, which has been summa- rized in the Organizing Framework for Chapter 9 and is shown in Figure 9.6. Causes will tend to show up in either the Inputs box or the Processes box. A. Start by looking at the Organizing Framework (Figure 9.6) and decide which person factors, if any, are most likely causes of the defined problem. For each cause, explain why this is a cause of the problem. Asking why multiple times is more likely to lead you to root causes of the problem. For example, do employee characteristics help explain the problem you defined in Step 1? B. Follow the same process for the situation fac- tors. For each ask yourself, Why is this a cause? By asking why multiple times you are likely to arrive at a more complete and accurate list of causes. Again, look to the Organizing Frame- work for this chapter for guidance. C. Now consider the Processes box in the Organiz- ing Framework. Social media policies and prac- tices can be but are not necessarily a cause. Are any other processes at the individual, group/team, or organizational level potential causes of your defined problem? For any process you consider, ask yourself, Why is this a cause? Again, do this for several iterations to arrive at the root causes. D. To check the accuracy or appropriateness of the causes, map them onto the defined problem. STEP 3: Make your recommendations for solving the problem. Consider whether you want to resolve it, solve it, or dissolve it (see Section 1.5). Which recom- mendation is desirable and feasible? A. Given the causes you identified in Step 2, what are your best recommendations? Use the mate- rial in the current chapter that best suits the cause. Remember to consider the OB in Action and Applying OB boxes, because these contain insights into what others have done that might be especially useful for this case. B. Be sure to consider the Organizing Framework— both person and situation factors—as well as processes at different levels. C. Create an action plan for implementing your recommendations. solemn as he said he felt “shame” when he saw the video of Dao being dragged off the plane. “This can never—will never—happen again on a United Airlines flight. That’s my premise and that’s my promise,” Munoz told viewers.116 The airline’s efforts may not have been enough to turn the tide. A survey taken by LendEDU after Munoz’s TV appearance found that 42 percent of Millennials, the most frequent business travelers of any genera- tion, would still not fly with United.117 A TOUGH COUPLE OF WEEKS FOR MUNOZ AND UNITED The crucial conversations spurred by flight 3411 con- tinued for weeks after the incident. United published full-page ads in several major U.S. newspapers in late April. The ads included an apology from Munoz. “That day, corporate policies were placed ahead of shared values,” said United’s CEO. The ads also outlined how the airline was changing its policies to prevent the reoccurrence of such an incident.118 Munoz’s handling of the situation took a toll on his career at United. The airline’s parent company, United Continental Holdings, denied the CEO’s planned pro- motion to chairman weeks after the incident.119 Ironi- cally, he too lost a seat he expected to receive. APPLY THE 3-STEP PROBLEM- SOLVING APPROACH TO OB Use the Organizing Framework in Figure 9.6 and the 3-Step Problem-Solving Approach to help identify inputs, processes, and outcomes relative to this case. STEP 1: Define the problem. A. Look first at the Outcomes box of the Organizing Framework to help identify the important problem(s) in this case. Remember that a prob- lem is a gap between a desired and current state. State your problem as a gap, and be sure to consider problems at all three levels. If more than one desired outcome is not being accom- plished, decide which one is most important and focus on it for steps 2 and 3. B. Cases have protagonists (key players), and problems are generally viewed from a particular protagonist’s perspective. In this case you’re asked to assume the role of a business owner. C. Use details in the case to determine the key problem. Don’t assume, infer, or create problems that are not included in the case. Organizational Behavior: A Practical, Problem-Solving Approach 377Communication in the Digital Age CHAPTER 9 LEGAL/ETHICAL CHALLENGE Should Social Media Posts Impact Life Insurance Premiums? Life insurance companies have traditionally used phys- ical exams and questionnaires to determine custom- ers’ premiums, but nowadays many are viewing social media posts as well.120 These social media posts may include customer tweets, pictures, videos, and likes/ dislikes of other posts. There had been limited legal guidance on this matter until a 2019 ruling by New York’s Department of Financial Services (NYFS). The NYFS ruled that insurance companies operating in the state may legally use social media posts to determine customer risk propensity.121 Insurers typically don’t have their employees go through millions of social media posts. Instead, they use carefully crafted algorithms to browse the Internet for policyholders’, or potential policyholders’, posts. These algorithms speed up the processing of life insurance applications by automatically greenlighting applicants, allowing them to receive a policy without invasive medical tests or waiting weeks for a doctor’s appointment.122 Algorithms may help speed along the processing of insurance applications, but they can also be used to illegally discriminate against certain groups of people based on built-in biases.123 For example, the MIT Technology Review found algorithmic bias in systems used to rank teachers and gender-biased models for natural language processing.124 The NYFS is trying to combat this by requiring insurers to monitor their algorithms for bias due to “race, color, creed, national origin, status as a victim of domestic violence, past lawful travel, or sexual orientation in any manner, or any other protected class.”125 This mandate may not be enough. For starters, many insurance companies legally refuse to share details of their social media algorithms with customers. Second, if  the algorithms were shared with customers, how could they be interpreted by a lay person? Dr. Jessica Baron, a tech ethics writer and reporter at TechEngage, says that “it will be very difficult for customers who are not well-versed in algorithmic bias to fight against unfair decisions made about their life insurance premiums based on data they don’t even realize they’re giving away.”126 The Wall Street Journal has some advice for those who decide to share aspects of their lives online: “Don’t post photos of yourself smoking on social-media sites. Do post photos of yourself running.”127 Those who decide not to utilize social media are not in the clear either. Research presented by Forbes shows that infor- mation about a person can be constructed from the comments of as few as eight of their online friends.128 If You Led an Insurance Company Based in New York, What Would You Do? 1. Utilize information gathered from social media when making life insurance premium decisions. It is legal and may also benefit some applicants. 2. Refuse to utilize information gathered from social media. It is an invasion of privacy and may lead to discrimination. 3. Invent other options and explain. Organizational Behavior: A Practical, Problem-Solving Approach LO 10-1 Describe contemporary conflict. LO 10-2 Differentiate conventional forms of work-related conflict. LO 10-3 Explain common forms of contemporary work-related conflict. LO 10-4 Apply your knowledge to manage conflict. LO 10-5 Implement your negotiation skills. LO 10-6 Describe the implications of managing conflict and negotiations for you and managers. After reading this chapter, you should be able to: The Organizing Framework in Figure 10.1 summarizes the key concepts you’ll learn in this chapter. Notice that many person factors, such as personality, experience, conflict-handling styles, mindfulness, and civility influence the type, frequency, and the intensity of conflict you have in all arenas of your life. Many of these same factors influence how you negotiate. You can also expect relationship quality, leadership, organizational climate, as well as norms and prac- tices, to shape conflict and negotiations at work. The importance of these factors notwithstand- ing, our primary focus in this chapter is understanding conflict and negotiation processes, and how they impact nearly every outcome in the Organizing Framework. The complexity and broad impact of conflict highlights the critical importance of managing conflict for your own satisfaction and performance at work. Managing Conflict and Negotiations10 Ja n H av lic ek /J oh ny 87 /1 23 RF Organizational Behavior: A Practical, Problem-Solving Approach 379Managing Conflict and Negotiations CHAPTER 10 FIGURE 10.1 Organizing Framework for Understanding and Applying OB SOURCE: ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. INPUTS PROCESSES OUTCOMES Person Factors • Personality • Experience • Skills and abilities • Conflict-handling styles • Values • Needs • Mindfulness • Ethics • Incivility • Moral character Situation Factors • Relationship quality • Leadership • Organizational climate • Stressors • Incivility • Alternative dispute resolution practices Individual Level • Conflict and negotiation • Emotions • Interpersonal skills • Perceptions • Performance management practices • Trust • Communication Group/Team Level • Group/team dynamics • Conflict and negotiation • Decision making • Performance management • Leadership • Communication • Trust Organizational Level • Human resource policies and practices • Communication • Leading and managing change and stress Individual Level • Task performance • Work attitudes • Citizenship behavior/ counterproductive behavior • Turnover • Career outcomes • Creativity Group/Team Level • Group/team performance • Group satisfaction • Group cohesion and conflict Organizational Level • Accounting/financial performance • Customer satisfaction • Innovation • Reputation Organizational Behavior: A Practical, Problem-Solving Approach Winning at Work Negotiating Salaries and Raises What’s Ahead in This Chapter We continue our discussion of the group and team level in the Organizing Framework and address conflict and negotiation in this chapter. Conflict is an inevitable part of organizational life and can be both positive and negative. We explore common forms of conflict at work, such as personality and intergroup, and we’ll pay significant atten- tion to work–life conflict and incivility (bullying, cyberbully- ing, and harassment). We then provide practical guidance on how to manage various forms of conflict, followed by an explanation of negotiation, including types of negotia- tions, the role of emotions, and ethical pitfalls. your long-term career, for example, a chance to work on an important assignment or have the company pay for certification or other training. Finally, as pointed out by Kim Churches, chief executive of the American Association of University Women, when you’re offered a job the company wants you to take that job. “Negotiating your sal- ary shouldn’t change their decision.”4 Negotiating a Pay Raise Even during robust job markets with low unemployment, 81 per- cent of employers estimate offering raises of 3 percent or less. This means getting a raise is largely on you, and to set yourself up to win, preparation is critical. You need information, and the fol- lowing are valuable sources and techniques for acquiring it. • Ask current colleagues. Peers are the best source but may also be the toughest. The best strategy is to be honest and say: “I’m not sure my salary reflects market value, so I’m checking with colleagues to find out what the current salary range is in our field. Would you be willing to talk about com- pensation?” Assure them you’ll keep this information confi- dential, and, if they’re willing, start by giving a range where your salary falls and asking how it compares with theirs. • Query former colleagues. Ask former coworkers their thoughts on an appropriate range for your job in a com- pany of your employer’s size and industry. It may help to keep the discussion in the third person: What do you think is a competitive or appropriate salary for a solid performer doing X type of work in a company like mine (or a com- pany like yours)? • Give to get. Another effective approach is to offer your salary: “Does X dollars sound competitive with what you’re making or what your company offers?” • Ask recruiters. One of the very best sources is recruiters who place people in jobs and companies like yours. Sal- ary is almost always part of their discussions. So, if you’re going to build out your network, adding a recruiter or two who will share such info can be extremely valuable. But you need the relationship first. It’s no use cold calling a recruiter and expecting him or her to answer your ques- tions—that expertise is part of what recruiters get paid for! A good place to start is to realize salary negotiations are not as common as you think. Recent research by Robert Half Staffing and Hiring Solutions found only 39 percent of workers attempted to negotiate salary with their last job offer. Breaking this down further by gender and age, the survey showed 46 percent of men versus 34 percent of women, 45 percent of 18–34-year-olds, 40 percent of 35–54-year-olds, and 30 percent of those 55 and older engaged in salary negotiations. Asking can pay off, as one study revealed 84 percent of those who negotiated received more pay.1 With this in mind, experts offer the following advice for getting the best compensation you can. Negotiating Your Salary for a New Job • Know the market rate. Research what companies are paying other employees with similar jobs. Glassdoor.com, Salary.com, PayScale, LinkedIn, and Randstad can help. It’s a good Idea to gather information from multiple sources. Be sure also to consider geographic differences; sometimes they are substantial. A PayScale survey revealed San Francisco has the largest year-to-year wage growth (4.9 percent at the end of 2018), while Nashville’s declined by a fraction of a percent.2 • Know your own value. Can you justify asking for more than the market rate? If yes, then be prepared to justify this premium with compelling examples of your perfor- mance and accomplishments. You may also want to con- sider particular combinations of skills that give you an edge, such as engineering combined with project man- agement, or experience and knowledge in hot industries, such as cybersecurity, cloud computing, or whatever is in demand in a particular city. Whether asking for premium or not, it is always a good idea to focus on how you cur- rently do or will benefit your future or present employers.3 • What’s in it for them? Of course, like everyone else you pursue particular jobs because of how they will benefit you. However, during interviews and negotiations for a new job you are best served to focus on the ways you can benefit your new employer, help the hiring manager reach her goals, and the positive impact you’ll have in work teams. • Be honest. Don’t exaggerate your current or past pay, actual value, or accomplishments. • Don’t go first. Try to wait for the other person to name a number. If you must say something first, then say you want to be paid the rate of a top performer with your qual- ifications. If pressed for an answer, give a range and not a specific dollar figure. • Consider benefits, too. Some of the most valuable parts of the compensation package may be insurance, retire- ment savings, vacation time, or the ability to work from home a certain percentage of time. Retirement may seem like eons away, but an employer matching a 5 percent contribution to your 401(k) plan is like giving you an extra 5 percent of pay—without an immediate tax bite. • Look at the long term. If you can’t get a big pay package, consider whether asking for something else that will help Organizational Behavior: A Practical, Problem-Solving Approach 381Managing Conflict and Negotiations CHAPTER 10 THE BIGGER PICTURE Conflict is an ever-present part of life and an important group-level process in the Organizing Framework. To help you better understand and manage conflict, we explore several common causes of conflict at school and work. Then you’ll learn what it means to have too little, too much, and just enough conflict (the conflict continuum). We explain why not all conflict is bad or dysfunctional; some forms are functional or desirable. Next, we describe some desired outcomes of functional conflict. 10.1 A CONTEMPORARY VIEW OF CONFLICT Because conflicts occur between people, a good place to begin is for you to learn about your own tendencies for conflicts with others. You likely believe you have relatively few conflicts and are easy to get along with, which may be true. However, many of the most problematic bosses, coworkers, business partners, and classmates view themselves the same way. Test your impressions of yourself by completing Self-Assessment 10.1. Conflict Is Everywhere and It Matters Conflict is a pervasive part of the human experience, and at work it can manifest as a lack of cooperation, exclusion, insults, bullying, anger, and many other behaviors and emotions. It also occurs within and between levels in the Organizing Framework and can affect most of the outcomes. Among the many undesirable outcomes of conflict are reduced produc- tivity, project failure, stress, damaged reputations, and termination.5 It also is safe and wise to assume all forms of conflict at work are underreported. However, it is important to realize conflict has both positive and negative conse- quences. The goal of this chapter is to help you understand how to avoid the negative consequences while also gaining from the positive outcomes. Let’s begin by defining con- flict, describing the conflict continuum, then explaining the difference between functional and dysfunctional conflict. A Modern View of Conflict Conflict is the energy created by the perceived gap between what we want and what we’re experiencing, and as such, it is important to use this energy most effectively.6 Describe contemporary conflict. LO 10-1 Interpersonal Conflict Tendencies Please be prepared to answer these questions if your instructor has assigned Self- Assessment 10.1 in Connect. 1. Does your score match your perception of yourself? 2. The assessment measures how well you get along with others and how they treat you; both are sources of conflict. If you were to improve the measure, what other factors do you think should be included? SELF-ASSESSMENT 10.1 Organizational Behavior: A Practical, Problem-Solving Approach 382 PART 2 Groups Notice this definition describes conflict as a gap, just as we describe problems as gaps between what we want and what we have in the 3-Step Problem-Solving Approach. Also notice the word energy, which means conflict is more than a simple difference of opinion. You may disagree with someone and not care, but if you have no energy about it you have no conflict due to the difference. And the word perceived reminds us that sources of con- flict can be real or imagined, just like perceptions of fairness. A lack of fairness, inciden- tally, perceived or real, is a major source of conflict at work. Your knowledge of OB will therefore prove useful in understanding and managing conflict. A Conflict Continuum Historically, management experts believed all conflict ultimately threatened management’s authority, reduced productivity, and thus should be avoided or quickly resolved. Experts later recognized the inevitability of conflict and advised managers to learn to live with it. As the understanding of conflict evolved, researchers and managers realized conflict had both positive and negative outcomes, and the most productive way to think of it was in terms of too much conflict or too little. Neither is desirable. Appropriate types and levels of conflict energize people to move in constructive direc- tions7 and are illustrated in Figure 10.2. The differences between types and levels of con- flict lead to the distinction between functional and dysfunctional conflict discussed next. Functional vs. Dysfunctional Conflict The distinction between functional conflict and dysfunctional conflict pivots on whether the organization’s interests are being served. Functional conflict, commonly referred to as constructive or cooperative conflict, is characterized by consultative interactions, a focus on the issues, mutual respect, and useful give-and-take. In such situations peo- ple often feel comfortable disagreeing and presenting opposing views. Functional conflict can foster several desirable outcomes, such as: • Open-mindedness. When conflict is functional, people speak up, others listen, which in turn can increase engagement. • Increased understanding and strengthened relationships. Feeling understood, even when views differ, cultivates respect and empathy. These of course facilitate produc- tive problem solving. • Innovation. Working through conflicts in a positive manner pushes people to con- sider different views than they would otherwise, which often results in new and bet- ter processes and outcomes. • Accelerated growth. Functional conflict results in change—a break from the status quo—and improves performance across levels of OB.8 Hopefully, these potential benefits will motivate you and others to invest the time and energy to work through conflict rather than avoiding it. Each of these beneficial factors is lacking in cases of dysfunctional conflict, which are disagreements that threaten or diminish an organization’s interests.9 A primary reason we study and manage conflict is because of its costs due to: • Absenteeism. Conflict is a major driver of people not showing up. More conflict generates more stress, more stress results in more time off. • Turnover. Lack of fairness, bullying, or other forms of disrespect and incivility cause people to quit altogether. • Unionization. Again, a lack of fairness can be costly and motivate employees to organize to combat poor treatment and practices. • Litigation. If conflict is not dealt with effectively internal to the organization, many employees will seek legal remedies which are often expensive not only in terms of money, but also time and reputations.10 Organizational Behavior: A Practical, Problem-Solving Approach 383Managing Conflict and Negotiations CHAPTER 10 These outcomes highlight the critical role of management, and your own actions, in determining whether conflict is positive or not. To effectively deal with any kind of con- flict, we need to understand some of the common causes. Common Causes of Conflict Some causes are more common than others, and knowing these can help you and manag- ers anticipate conflict and take steps to resolve it if it becomes dysfunctional. Table 10.1 lists several of the most common. Which have you experienced? Proactive managers look for these early warnings and take appropriate action. For example, conflict can sometimes be reduced by making decisions on the basis of majority approval rather than striving for a consensus. However, if conflict is unnoticed or allowed to continue, it can and does escalate. Escalation of Conflict When conflict escalates, the exchanges intensify and conflicting parties commonly turn to destructive and negative attacks. When this happens those involved are often more about undermining or hurting the other party than advancing one’s own interests. The involved FIGURE 10.2 Relationship between Conflict Intensity and Outcomes Positive Neutral Negative Intensity O ut co m es Too little conflict Too much conflict Appropriate conflict HighModerateLow Characterized by apathy, lack of creativity, indecision, and missed deadlines Characterized by eroding performance, political infighting, dissatisfaction, lack of teamwork, and aggression. SOURCE: Donald, Carrie G., John D. Ralston, and Suzanne F. Webb. “Arbitral Views of Fighting: An Analysis of Arbitration Cases, 1989–2003.” Journal of Academic and Business Ethics 2 (July 2009): 1–19. TABLE 10.1 Common Causes of Workplace Conflict11 Personality differences Competing responsibilities Irritating workplace behaviors Change Unmet needs at work Poor management Perceived inequities of resources and policies Poor communication (including no communication) Unclear roles and responsibilities Differences in methods for doing work SOURCE: Society of Human Resource Management. “Managing Workplace Conflict.” Accessed July 4, 2019. https://www.shrm. org/resourcesandtools/tools-and-samples/toolkits/pages/managingworkplaceconflict.aspx. Organizational Behavior: A Practical, Problem-Solving Approach 384 PART 2 Groups parties also tend to take more extreme positions and becoming less flexible.12 Common warning signs of conflict escalation are: 1. Tactics change. Parties move from “light tactics,” such as persuasive arguments, prom- ises, and efforts to please the other side, to “heavy tactics” that include threats, power plays, and even violence. 2. Number of issues grows. More issues that bother each party are raised and included in the conflict. 3. Issues move from specific to general. Small and specific concerns often become more vague or general and can evolve into a general dislike of or intolerance for the other party. 4. Number of parties grows. More people and groups are drawn into the conflict. 5. Goals change. Parties change their focus from “doing well” or resolving conflict to winning and even hurting the other party.13 Sometimes conflict will result in wanting to quit your job—you’ve either had enough or you don’t see the people or situation changing meaningfully. When this occurs, you’ll be look- ing for a job while still in your conflict-ridden job and will thus need to explain in an effec- tive way why you want to leave. The Applying OB box provides some guidance. Applying OB Many of your job searches will occur while you’re still employed. This means you’ll often be asked during interviews, “So, why do you want to leave your current job?” There may be many specific reasons, but often it’s because you’re unsatisfied, perhaps due to a lack of opportunity, boring work, horrible boss, or low pay. Of course, another common reason is conflict. What- ever the reason, you need to have an effective response to this question. The following tips should help. Acknowledge the Obvious When you currently have a job and are interview- ing for another, interviewers realize something isn’t working for you and you’re willing to leave. This obvious fact is often overlooked by job candi- dates and undermines their performance in inter- views. Don’t forget or feel uncomfortable with this obvious fact. What Not to Do Don’t bash and don’t ramble. You’ve learned already that most people believe it is best not to trash or complain about your current employer. You and many others realize this, but unfortunately in your efforts to avoid doing so you may ramble. This can be interpreted by the interviewer as either a problem exists in your current job, and that problem might be you, or you lack clarity on what it is you are seeking. Neither is good for you. To avoid these pitfalls you need clarity. Identify the Reasons and Create the Message List all the reasons you want to leave, and if there are many pare the list to no more than two or three. And even if the major reason is a horrible boss or pay, it may be helpful to reflect more broadly and consider: What are my career goals? What do I like about my current and past positions? What are my relationships with coworkers like and how do these influence my job satisfaction? Then, create a short, clear sentence for each reason and practice saying them aloud. This is your script. Frame Your Answer and Speak Confidently Martin Yate, a career coach and HR professional, suggests framing your thinking positively rather than negatively. Instead of thinking of your current job as a troubled situation you need to explain del- icately, think of your motives for leaving as reason- able and appropriate, and then talk as if they are. During the interview look the person in the eye and explain confidently the reasons you want to leave, using the script you created and practiced. You’ve Decided to Leave Your Job . . . How Do You Explain It During an Interview?14 Organizational Behavior: A Practical, Problem-Solving Approach 385Managing Conflict and Negotiations CHAPTER 10 Conflict Avoidance Are you uncomfortable with conflict? Do you go out of your way to avoid it? If so, you’re not alone. Fifty-three percent of people in one study reported “delay respond- ing” as their first reaction to conflict, and avoidance is a key ingredient for escalation.15 Margaret Heffernan, business executive and thought leader, described conflict and avoiding it this way: We train people to be expert in managing technology, numbers, finance, and the law. But this most fundamental characteristic of human interaction—conflict—is something we are somehow just supposed to figure out as we go along, but we don’t. . . . Not knowing how to handle it, we prefer to ignore it and hope it goes away; unresolved conflict festers and grows. The good news is it doesn’t have to be that way.16 This raises the question—why? Some of the most common reasons people avoid con- flict are: 1. We’re social. Like other social animals, groups of humans (organizations) function better without conflict. We therefore generally prefer not to cause or engage in ten- sions with others. 2. It’s stressful. This too is a fact of life; conflict often causes stress and avoiding conflict, at least in the immediate term, may reduce stress. 3. Agreeableness is rewarded. When we go along, or at least don’t disagree, with others we’re generally rewarded. People like us, include us, and communications are smooth. Conflict, however, is rarely rewarded and is often accompanied by undesirable conse- quences, even punishment (termination). 4. Backlash. Last but not least is the fear of damaged relationships. Conflicts typically strain relationships, and if you have conflicts with a coworker with whom you work every day your worklife can be miserable.17 Conflict avoidance is a common reason otherwise qualified employees are passed over for management and executive positions. Avoiding making tough decisions, confronting poor performance, or challenging weak or faulty ideas are not ways to get ahead. So, what is the alternative? Table 10.2 provides six useful suggestions for constructively engaging rather than avoiding conflict. We realize that embracing conflict or taking a more functional and constructive view can be difficult if not counterintuitive. To help convince you it is worth the effort, we explain about the payoff or benefits next. Some common scripts to consider, modify, and use are: • There is limited room for growth, and I’m ambitious and determined. My hope is it is different here. • I’m unable to contribute in the ways I would like and am able, and I am looking for opportunities to do so. This seems like an excellent place for me to do just that. • Compensation is out of sync with the market and my level of skills and contributions, and this isn’t going to change. • I want to change career paths and am looking for exciting new opportunities. This appears to be just that. • I am determined to grow my skill set and make significant contributions, and I hope to do both here. Follow the above advice and prevent unnecessary stress and missteps during interviews. Organizational Behavior: A Practical, Problem-Solving Approach 386 PART 2 Groups Desired Outcomes of Conflict Management It’s best to view conflict management neither as a quest for agreement nor a quest for vic- tory. Instead, frame and pursue it as an opportunity to produce positive outcomes, such as: 1. Change. Conflict is rarely productively resolved if nothing changes. Therefore, identify positive elements in the various parties’ views and find a way forward—new, different, better. 2. Goal alignment. Incongruent objectives are common sources of conflict for individu- als, groups, and departments, and organizations. Confronting these is an opportunity to review and realign goals to serve the parties involved. 3. Innovation. A cousin of change, innovation occurs when conflict generates new and more effective processes, products, and mindsets.19 Think of the above this way: if you or the person with whom you have conflict simply sticks to your position, then none of the above desirable outcomes are possible—change doesn’t happen, goals are not aligned, and innovation is zero. We therefore encourage you, when possible, to look at conflict not as a war or a battle, but instead as an opportunity or a journey. TABLE 10.2 How to Avoid Avoiding18 YOUR ROLE REASON 1. Stop ignoring a conflict Ignoring or working around a conflict won’t make it go away and may cause further escalation. Instead, bring both sides together to address the issues. 2. Act decisively to improve the outcome Delay only causes the problem, real or perceived, to fester. Addressing a conflict in short order can help unveil misunder- standings or simple ovesights before they grow into some- thing more or spread. 3. Make the path to resolution open and honest Involve all relevant parties, collect information, and determine a desired outcome. Doing so helps resolve misunderstandings and focuses everyone on the end state instead of wallowing in the (alleged) offenses. 4. Use descriptive language instead of evaluative Beware of accusations and judgmental language. Both put people on the defensive and impede progress. Instead, focus on the problem (behaviors, feelings, implications) and solution rather than the perpetrator. 5. Make the process a team-building opportunity If the problem affects the team, then it may be beneficial to approach the conflict and its solution as a team. Such resolu- tions may improve relationships in such a way that the team functions even better than it did before the conflict. 6. Keep the upside in mind Effective conflict resolution creates “success momentum.” In other words, conflicts are signs along the road to the final and desired destination. Don’t get bogged down and lose sight of the ultimate goal or bigger picture. SOURCE: Duncum, Karen. “Turning Conflict into Cooperation.” Bloomberg L.P., October 15, 2010. https://www.bloomberg.com/ news/articles/2010-10-15/turning-conflict-into-cooperation. Organizational Behavior: A Practical, Problem-Solving Approach 387Managing Conflict and Negotiations CHAPTER 10 THE BIGGER PICTURE You can probably think of many types of conflicts from your own life, and you likely have a good idea what caused most of them. But in this section we focus on two of the most com- mon and consequential types of conflict in organizations—personality and intergroup. The first occurs at the individual level and the other at the group level. Understanding both types will make you more effective at managing an extremely valuable group-level process in the Organizing Framework. 10.2 CONVENTIONAL FORMS OF CONFLICT As discussed. opposition isn’t necessarily a problem. It can be a constructive way of chal- lenging the status quo and improving behaviors, processes, and outcomes.20 New ideas, by definition, contrast with old ideas or ways of doing things. Opposition becomes an issue if it turns into dysfunctional conflict and impedes progress and performance. Personality conflict and intergroup conflict can both cause numerous undesirable outcomes across lev- els of the Organizing Framework for OB. Personality Conflicts Given the many possible combinations of personality traits (recall Chapter 3), it is clear why personality conflicts are inevitable. How many times have you said or heard, “I just don’t like him (or her)? We don’t get along.” One of the many reasons for these feelings and statements is personality conflicts. We define a personality conflict as interper- sonal opposition based on personal dislike or disagreement. Like other conflicts, personality conflicts can escalate if not addressed. Think of personality conflicts you’ve had at school or work. What were the consequences for you? The other person? Members of your team, department, or class? Did things escalate? If the source of a conflict really is personality, then dealing with such conflicts is particularly troublesome since personality traits are by definition stable and resistant to change. Research shows conflicts over work tasks can turn into personal conflicts and escalate into bullying.21 But they have other undesirable outcomes too, such as negative emotions related to particular coworkers and to work in general. If these feelings persist beyond work, employees can ruminate and fail to recover appropriately, resulting in poor health and strained nonwork relationships.22 Table 10.3 presents practical tips for both you and managers who are involved in or affected by personality conflicts. Best practices vary and items 2 through 4 in the table highlight how to proceed if the conflict is not resolved. Conflicts between groups are another common form and are addressed next. Intergroup Conflict Conflict among work groups, teams, departments, and organizations is a threat to effec- tiveness across organizational levels, as illustrated in the Organizing Framework. Airbnb, for instance, has ongoing heated conflicts with many local governments in the United States and abroad. Hosts or owners of properties want to make money on their investments by providing accommodations for travelers, but many neighboring full-time residents and Differentiate conventional forms of work-related conflict. LO 10-2 Organizational Behavior: A Practical, Problem-Solving Approach 388 PART 2 Groups TABLE 10.3 How to Respond When an Employee is in a Personality Conflict FOR THE EMPLOYEE FOR THIRD-PARTY OBSERVERS FOR THE EMPLOYEE’S MANAGER 1. Be familiar with and follow company policies on diversity, discrimination, and sexual harassment. 2. Communicate directly with the other person to resolve the perceived con- flict (emphasize problem solving and common objectives, not personalities). Do not take sides in someone else’s personality conflict. Investigate and document the conflict; if appropriate, take corrective action (feedback or behavior modification). 3. Resist dragging coworkers into the conflict. Suggest the parties work things out for themselves in a constructive and positive way. If necessary, attempt informal dispute resolution. 4. If dysfunctional conflict persists, seek help from direct supervisors or human resource specialists. If dysfunctional conflict per- sists, refer the problem to the parties’ direct supervisors. Refer difficult conflicts to human resource specialists or hired counselors for formal resolution efforts and other interventions. local governing bodies want to limit or prevent Airbnb’s penetration. They do this in a variety of ways, for example, zoning areas as residential and thus ineligible for short-term rentals. An article in the New York Times described a sce- nario in Miami where a code compliance officer went door-to-door in an apartment building asking questions of those staying there to determine if they were in compliance. In some instances, violators were required to move out, immediately, which left the renters in a tough spot and created additional conflicts between them, their hosts, and Airbnb itself. Making matters worse, the owner of the build- ing described in the article was fined $40,000 for vio- lating the zoning codes! Therefore, intergroup conflict can escalate much like other forms of con- flict discussed in the previous section.23 Because of the seemingly limitless number of groups and differences both within and between, let’s provide some guidance to you on how to handle such conflicts. How to Handle Intergroup Conflict How have you attempted to solve conflicts between a group of which you are a member and another group? While many techniques are successful in particular situations, the contact hypothesis and creation of psychologically safe climates can help. Contact Hypothesis The contact hypothesis suggests that the more members of different groups interact, the less intergroup conflict they will experience. Those inter- ested in improving race, international, and union–management relations typically encourage cross-group interaction. The hope is that interaction will reduce stereotyping and diminish differences. For instance, research in the IT context showed that contract employees working side-by-side with their client representatives resulted in greater cross-cultural training participation for both groups, and it also improved individual performance.24 Regulators often have conflicts with various groups, such as code enforcement agencies and the owners of Airbnb properties. An increasing number of communities are limiting the use of properties, which puts owners, renters, property managers, and community agency at odds. Scott Baker/The New York Times/Redux Pictures Organizational Behavior: A Practical, Problem-Solving Approach 389Managing Conflict and Negotiations CHAPTER 10 It helps to focus on the perceived security and quality of the interactions. If you and/ or your managers can make the minority (or out-group) feel there is nothing at stake (they are not being evaluated), they are more likely to feel secure and satisfied with the interac- tion. This reassurance can also reduce both groups’ prejudices about the other. We can achieve such benefits by sharing social interests or social events where the focus is not on work, particularly the minority group’s work.25 Creating a Psychologically Safe Climate One especially important organizational level cause and remedy to conflict is a climate of psychological safety. A psychological safety climate represents a shared belief among team members that it is safe to engage in risky behaviors, such as questioning current practices without retribution or negative consequences.26 When employees feel psychologically safe, they are more likely to speak up and present their ideas and less likely to take disagreements personally. This interaction results in increased team creativity,27 less conflict within and between teams, and higher individual and team performance.28 Psychological safety climates also help improve employee turnover, safe work behaviors, and job satisfaction.29 How can you and your employers foster a climate for psychological safety? Here are four fundamental and widely applicable practices: 1. Frame work as a learning problem, not a performance problem. 2. Practice inclusive leadership. 3. Model curiosity and ask many questions. 4. Celebrate and reinforce risk taking and differences.30 Find out the level of psychological safety in one of your groups, teams, or organiza- tions by completing Self-Assessment 10.2. It’s a quick, accurate, and valuable way to get a sense of this important situation factor and unit-level process. Knowing the level of psycho- logical safety can help you understand why some conflicts occur and how you can handle them effectively. Trying to understand and appreciate differing company, industry, or cultural customs is an effective way to avoid conflicts and ensure all parties are more comfortable. Dave and Les Jacobs/Blend Images/Alamy Stock Photo Organizational Behavior: A Practical, Problem-Solving Approach 390 PART 2 Groups Psychological Safety Climate Please be prepared to answer these questions if your instructor has assigned Self- Assessment 10.2 in Connect. 1. Identify a group at school or work of which you are a member. It helps if the one you choose deals with opposing views and make decisions. Complete Self- Assessment 10.2 focusing on this group. 2. Which items help you understand why the group deals with conflicts as it does? 3. Explain three things you and your group members can do to increase psycho- logical safety and reduce conflict. SOURCE: Edmondson, Amy. “Psychological Safety and Learning Behavior in Work Teams.” Administrative Science Quarterly 44, no. 2 (June 1999): 350–83. https://doi.org/10.2307/2666999. SELF-ASSESSMENT 10.2 Before leaving this section, read the Applying OB box and learn how Google deter- mined the importance of psychological safety for team performance (as you learned in Chapter 8). Applying OB Google employed its vast data and tremendous ana- lytic skills to determine what makes an effective man- ager in their company. The initiative, called Project Oxygen, also helped identify the key ingredients of successful teams. By far the most important factor was psychological safety. Put simply, if people feel they won’t be punished for making mistakes, it is likely they work in a psychologically safe environ- ment. This helps people speak up and ask questions, make suggestions, and challenge the status quo. Not only do these behaviors increase individual and team performance, but they also help diminish conflict avoidance. To increase and cultivate such a climate within your team or organization, Google’s Head of Industry, Paul Santagata, recommends: 1. When conflict occurs collaborate Instead of combat. 2. Emphasize empathy and respect for everyone, regardless of differences. 3. Engage rather than avoid difficult topics and con- versations. 4. Anticipate counterarguments and formulate responses, but always be mindful of #1 and #2. 5. Search for win-win while being ever conscious of discouraging dissent. Keeping this advice in mind, and putting it into practice, may increase your performance, satisfaction, and team member effectiveness. Psychological Safety Is Oxygen at Google31 Now let’s explore work–family conflict and incivility, two forms of conflict that are growing in frequency and intensity. Organizational Behavior: A Practical, Problem-Solving Approach 391Managing Conflict and Negotiations CHAPTER 10 THE BIGGER PICTURE We focus our discussion on two forms of conflict: work–life conflict and incivility. You face demands at school and in other arenas of your life—work, social life, and perhaps family— and these demands can compete and sometimes cause conflicts for you. These con- flicts, along with incivility, can have dramatic and undesirable effects on your personal health, well-being, opportunities, and other outcomes across all levels of the Organizing Framework. 10.3 FORMS OF CONFLICT INTENSIFIED BY TECHNOLOGY Students, employees, and people everywhere have always experienced conflicts between the various arenas of their lives, notably between work, school, and home. But historically, various activities and their demands were confined to the physical locations in which they occurred—work happened largely at the office—but those days are ancient history. Technol- ogy has not only blurred the boundaries between these different arenas,32 but it has also extended mistreatment to every arena. Our mobile devices and social media are ubiquitous and devastating tools for bullies and other bad actors. For these reasons we give special attention to these forms of conflict. Work–Life Conflict Work–life conflict is the perception that expectations and demands between work and nonwork roles are mutually incompatible.33 It is important to realize conflict can go both ways—work can interfere with family and family can interfere with work. For exam- ple, suppose two managers in the same department have daughters playing on the same soccer team. One manager misses the big soccer game to attend a last-minute department meeting (work interferes with family), while the other manager skips the meeting to attend the game (family interferes with work). If you receive and respond to a text from a friend during class, this is a form of school–social life conflict, just as is skipping happy hour with friends in order to study for an exam. These various conflicts matter because they can negatively affect important outcomes in the Organizing Framework and in your larger life, such as lower job and career satisfac- tion, job performance, and marital and family satisfaction. The same conflicts are linked to declines in emotional and physical health and to substance abuse.34 Self-Assessment 10.3 will help you see such conflicts from the point of view of others, not just your own perceptions. It can also help you identify which conflicts are the most and least serious, and this knowledge can assist in deciding what to do about them. Explain common forms of contemporary work-related conflict. LO 10-3 Organizational Behavior: A Practical, Problem-Solving Approach 392 PART 2 Groups However, like other forms of conflict, recent research shows work–life conflicts are not all bad.35 Answering a work-related phone call or text when having dinner with your partner, friend, or family can indeed be intrusive and undesirable, but if doing so enables you to solve a problem for a coworker or customer in real-time, then this may enhance your performance and satisfaction in the work domain. Conversely, if you take a call from your sister or a friend while you’re working, this can interrupt your flow and productivity, despite pleasing them. Therefore, the real challenge for you is not to avoid or eliminate conflict, but instead to manage it in ways to realize the benefits and reduce the costs.36 Let’s explore this next. Work–Life Balance, Harmony, Blend, Integration, or Rhythm Business researchers and managers in America have argued for “work–life balance” since the 1980s, which suggests achieving just the right level of demands from all of life’s domains is pos- sible. Even if it is possible how would you know? This has led to more recent views and concepts—harmony, blend, integration, and rhythm—that more accurately describe our realities and the challenge facing all of us, which is to manage the competing demands from your various roles and domains effectively.37 School–Non-School Conflict Please be prepared to answer these questions if your instructor has assigned Self-Assessment 10.3 in Connect. 1. What is your reaction? 2. Do any of your responses and sources of conflict surprise you? 3. Which do you think is greater, the social dimension (questions 1–6) or the cognitive dimension (questions 7–9)? 4. What can you do to prevent or reduce the conflicts you identified? SOURCE: Ezzedeen, Souha R., and Paul M. Swiercz. “Development and Initial Validation of a Cognitive-Based Work-Non- work Conflict Scale.” Psychological Reports 100, no. 3 (March 2007): 979–99. https://doi.org/10.2466/pr0.100.3. SELF-ASSESSMENT 10.3 Work, parenting, and life. For you, do they conflict, balance, or integrate? We have many competing demands and managing them effectively is critical for your success and well-being. Zivica Kerkez/Shutterstock To underscore the importance of effectively managing the boundaries between domains and your energy, 33 percent of employees reported work–life balance as their Organizational Behavior: A Practical, Problem-Solving Approach 393Managing Conflict and Negotiations CHAPTER 10 top criterion when selecting a job, above compensation and promotion opportunities.38 Work–life conflicts are intensified by technology and the nature of our lives. As in the examples above, the boundaries between our roles and life domains are more permeable and you need to manage the interruptions from one domain into another. The responsi- bilities for doing this belong to both you and your employer. Your responsibilities: Designate time. Tell family and friends you’ll talk during your breaks, such as lunch and when you grab a snack of coffee in the afternoon. You can coordinate the latter, for instance, with the time when your kids get home from school. Do the same with work colleagues; tell them not to expect e-mails or texts from you after a certain time in the evening or on weekends. The important point here is to set and commu- nicate the times.39 Designate space. Besides managing time boundaries, if you work part- or full-time from home it is helpful to designate a particular space where work happens—an office, unused bedroom, or some other space not in front of the TV or at the dining room table—to reduce interruptions. This signals to you and others where work hap- pens, and others should respect this space. Share. Parents of course have child-rearing, household, and other responsibilities. Research shows that parents, collectively and as individuals, are more satisfied at both work and home when they share the load. Moreover, spousal support is an instrumen- tal factor for career success, according to research involving senior-level executives.40 The objective is not to eliminate interruptions, but instead to manage them effectively by considering time and space. As for the employer’s part, balance requires flexibility and other accommodating attitudes and practices. Employer responsibilities: Flex space such as telecommuting, occurs when policies enable employees to do their work from different locations besides the office (coffee shop, home, or the beach). Flextime is flexible scheduling, covering either the time when work must be completed (deadlines) or the limits of the workday (9–5, 10-4, or any time today). Table 10.4 outlines some benefits of flexible hours and locations. Family supportive culture. An employer’s family-supportive culture is more important than specific programs. Organizational culture must support the use of family-friendly pro- grams for employees to benefit from them. To elaborate, it’s not enough to simply provide child care; employees must also feel supported and comfortable using it. The same goes for leaving work early to attend a child’s sporting event or recital. TABLE 10.4 Key Benefits of Flexible Work Policies41 BENEFITS EXPLANATION Lower expenses— higher profits Allowing employees to work from other places requires less formal office space, which lowers real estate/rent costs, and in turn boosts profits. Environmentally friendly Telecommuting saves energy from both the gasoline required to get to work, and the utilities (gas, water, electric) for the office space. Boosts productivity Some research shows those who work remotely actually work more (lunch breaks are shorter and commuting time is short or zero). Increased retention Flexibility enables employees—men and women—to tend their children’s needs and schedules, as well as the inevitable doctor’s appointments and other commitments. SOURCE: Castillo-Frick, Iliana. “Words of Wisdom: The Evolution of Workflex.” SHRM, November 21, 2017. https://www.shrm.org/hr-today/news/hr-magazine/1217/ pages/words-of-wisdom-the-evolution-of-workflex-castillo-frick.aspx. Organizational Behavior: A Practical, Problem-Solving Approach 394 PART 2 Groups The magazine’s editor, Meredith Bodgas, said: “Not only does this help dads . . . it helps moms succeed both at home and work and puts them on more equal footing.” Such policies are a means for organizations, like those on this list, to earn employer of choice status in the eyes of job candidates.44 Before moving on, a few words of caution are in order. The value of most flexible work arrangements can be undermined if your immediate supervisor isn’t supportive. This is especially critical considering a survey found 29 percent of participants’ bosses expect them to work even on vacation!45 Put another way, supportive policies matter, but what good is a policy if you aren’t allowed to use it?46 Your manager’s own behaviors are a stronger signal and influence on behavior than most any policy, including those related to flexible work arrangements. Fully half of companies surveyed offer some sort of flexi- ble work arrangements, yet the same companies report that only a third of employees utilize them.47 Cathy Engelbert, commissioner of the WNBA and former CEO of Deloitte, prac- tices “work-life strategy.” As reported in a Time magazine article, she “has a black belt in scheduling.”48 In one week she was in Washington, DC, Dallas, Singapore, and Madrid. She also made time to coach her daughter’s lacrosse team, and later the day of the Time interview, she promised her son to make it home by 5 p.m. to watch an NCAA basketball game with him. Engelbert is disciplined, obviously, and sets aside 10-minute blocks for what she calls SMORs—small moments of reflection—in between meetings to consider the previous and prepare for the next. Now let’s turn our attention to a different category of conflict—incivility. Family friendly policies aren’t just for women anymore. Organizations are increasingly realizing the value (e.g., attracting and retaining) of such benefits for male employees too. Sorapop Udomsri/Shutterstock Another point worth noting is that the benefit of work–life initiatives applies to women and men. Specifically, organizations with flexible arrangements, leaves of absence, and on-site child care are more likely to have employees (men and women) who aspire to leadership roles.42 Working Mother magazine, well known for its annual list of Best Companies for Moms, recently created its first list of Best Companies for Dads. These companies work diligently to reduce the stigma long felt by (new) fathers related to benefits historically only provided to women, if at all, such as paternity leave, phased back-to-work, telecommuting, and f lexible schedules. American Express provides 20 weeks paternity leave, 20 weeks for adoption leave, and paid surrogacy expenses. Bank of America, Deloitte, and EY all provide 16 weeks of paternity leave and the same amount of time for adoptions.43 Organizational Behavior: A Practical, Problem-Solving Approach 395Managing Conflict and Negotiations CHAPTER 10 Incivility—Treating Others Poorly Has Real Costs Incivility is any form of socially harmful behavior, such as aggression, interpersonal deviance, social undermining, interactional injustice, harassment, abusive supervi- sion, and bullying.49 At its foundation, incivility violates norms of respect, and like other OB concepts it is perceptual and thus exists in the eyes of the abused. If you feel you’ve been treated disrespectfully, then you’ve been treated disrespectfully. This perception is what negatively affects numerous outcomes across levels of the Organizing Framework, such as lower employee engagement and job satisfaction, reduced effort and commitment, and increased stress and turnover.50 Incivility can be insidious, meaning it often happens in the background without notice, until it accumulates or escalates and causes others to become involved. Subtle or not, statistics regarding various forms of mistreatment are astounding and suggest a growing epidemic. It is estimated that 13 percent of executives’ time at Fortune 1000 companies is spent dealing with incivility. This equates to seven weeks per year!51 Beyond the executive ranks, 98 percent of employees reported experiencing some form of incivility, and 50 percent said they had been treated rudely at least once a week!52 Statistics from the Workplace Bullying Institute, shown in Table 10.5, provide a brief glimpse of the pervasiveness and costs of the problem. Like more conventional epidemics, incivility is contagious and being rude to one per- son is associated with them being rude to others. And if not addressed by managers and others, disrespectful behaviors can become embedded and create toxic cultures and nega- tively impact an array of stakeholders—customers, employees, and suppliers.53 Even more shocking is the prevalence and impact of incivility in health care. For instance, hospital workers whose supervisors mistreated them were less likely to share knowledge and information, which diminished their team’s performance.54 Another study found that almost 25 percent of physicians said incivility led to patient harm, and nearly 75 percent of those physicians said bad behavior in their team caused medical errors, even contributing to patient deaths.55 Cathy Engelbert knows a thing or two about managing the demands of her professional and personal lives. Most of her career was spent at Deloitte, living the life an auditor, manager and eventually becoming the first female CEO of a Big 4 accounting firm. She has since taken her talents to the Women’s National Basketball Association, where she is now the first commissioner in the league’s history. Along the way she has both modeled and established policies and behaviors supportive to women. Joshua Roberts/Reuters/Newscom Organizational Behavior: A Practical, Problem-Solving Approach 396 PART 2 Groups The appropriate and obvious next question is “why?” In order to prevent and over- come incivility we need to understand the causes. Causes of Incivility It’s no surprise that both individuals and their employers can be the root cause of mistreatment at work (see Figure 10.3). The causes, just like the out- comes, can occur at all three levels in the Organizing Framework. Incivility, for instance, has been shown to be catastrophic to teamwork, because it undermines collaboration and individual member performance;56 it also undermines engagement and fosters intentions to quit.57 This means bad behavior and disrespect is truly an organizational problem, even if it starts with a single individual. TABLE 10.5 Employees’ Responses to and the Costs of Incivility at Work 61% of Americans are aware of abusive conduct in the workplace 71% of employer actions are harmful to targets of incivility 60 million Americans are affected by it 61% of bullies are bosses 29% of targets remain silent about their experiences 40% of targets believe they suffer adverse health because of incivility SOURCE: Namie, Gary. “2017 WBI U.S. Workplace Bullying Survey.” Workplace Bullying Institute. https://www.workplacebullying. org/wbiresearch/wbi-2017-survey/. FIGURE 10.3 Causes, Forms, and Outcomes of Incivility at Work SOURCE: Singleton, R., L. A. Toombs, S. Taneja, C. Larkin, and M. G. Pryor. “Workplace Conflict: A Strategic Leadership Imperative.” International Journal of Business and Public Administration 8 (2011): 149–56. • Organizational justice— distributive, procedural, and interpersonal • Destructive leadership— autocratic (employee involvement actively dis- couraged) and laissez-faire (lack of interest in employees) • HR policies and procedures—unfair performance review process, lack of grievance process Organizational Causes • Stress • Decreased job satisfaction and performance • Post-traumatic stress disorder (PTSD) • Negative emotions (anger and fear) • Intentions to quit • Uncivil behaviors by others (sabotage and aggression) • Lower group cohesiveness and performance • Damaged organizational reputation Outcomes • Lack of character and ethics • Past experience as target of incivility • Sensitivity to injustice and harassment • Di�erent goals • Incompatible personalities • Biases and stereotypes Individual Causes • Harassment • Aggression • Unfair treatment by managers and coworkers • Abusive supervision • (Cyber) Bullying Forms of Incivility Organizational Behavior: A Practical, Problem-Solving Approach 397Managing Conflict and Negotiations CHAPTER 10 With this knowledge in hand, we’ll address some particular forms of incivility—bullying, cyberbullying, and harassment. Bullying is unwelcomed behavior that occurs over a period of time and is meant to harm someone who feels powerless to respond.58 Bullying also occurs at multiple levels in OB and is different from other forms of mistreatment or incivility in at least three ways.59 1. Bullying is usually evident to others. Bullies at work don’t have to push you down or take your lunch money, like they do in elementary school.60 Even when the bullying is less obvi- ous and nonviolent, coworkers are commonly aware through either gossip or other forms of communication (meetings, e-mail, and social media) that someone is being bullied. 2. Bullying affects even those who are NOT bullied. Research shows that employees who are simply aware of bullying of colleagues but are not themselves a target are more likely to quit their jobs. This means bullying has costs that extend well beyond the harm to the person being bullied.61 Simply witnessing or being aware one of your col- leagues is mistreated has negative effects on you. 3. Bullying has group-level implications. Because even those who are not targeted by bullies can be affected, bullying often negatively affects group dynamics and group satisfaction and performance,62 important processes and outcomes in the Organizing Framework. Given the costs of bullying, what can you and employers do? Table 10.6 provides a collec- tion of best practices from business and research. Cyber Bullying Social media and mobile devices have created new avenues and weap- ons for bullies at school, at work, and in our social lives. Many researchers now report that virtual bullying is more common than face-to-face bullying, although the two often co- occur.63 Making matters worse, the undesirable effects last over time. Employees who experienced cyber-bullying at work today reported greater physical and emotional distress at the end of the day and the next morning. And the targets are harmed both by the direct assault or event, and the fear of future mistreatment.64 Besides the fact so much of our lives and communication is online, why else might cyber- bullying be such a problem? One reason is organizations commonly have “norms of civility” for face-to-face interactions, such as meetings where people are respectful in tone, content, and nature of their communications. However, such norms are less clear or are absent via e-mail and texts. You, and employees more generally, may say and do things online differently with- out any ill intent. Second, nonverbal queues and information are absent and can dramatically influence the way your message is perceived. Moreover, feedback is delayed and may further TABLE 10.6 Anti-Bullying Strategies for Groups and Organizations Develop a workplace bullying policy. Encourage open and respectful communication. Identify and model appropriate ways for people to interact with colleagues. Develop and communicate a system for reporting bullying. Identify and resolve conflicts quickly and fairly to prevent escalation. Identify the situations, policies, and behaviors likely to cause bullying or allow it to occur. Train employees to manage conflict. Establish and enforce clear consequences for those who engage in bullying. Monitor and review employee relationships, with particular attention to fairness. SOURCE: Thomas, Helena Cooper, Dianne Gardner, Michael O’Driscoll, Bevan Catley, Tim Bentley, and Linda Trenberth. “Neutralizing Workplace Bullying: The Buffering Effects of Contextual Factors.” Journal of Managerial Psychology 28, no. 4 (2013): 384–407. https://doi.org/10.1108/JMP-12-2012-0399. Organizational Behavior: A Practical, Problem-Solving Approach 398 PART 2 Groups alter the intended message.65 All of this applies before considering the shorthand language that dominates texting and the infamous autocorrect, which is either your friend or your foe. The situation is made worse when the communications and bullying occur at work. The simple reason is that often you cannot avoid or otherwise delay or ignore responding to your boss or other (powerful) coworkers and clients. The importance and impact of cyber-bullying is captured extremely well by a group of researchers on the topic: “. . . [O]ur results suggest that the distressing effects of cyber-incivility are persistent and strong.”66 Now let’s learn about a close relative of bullying—harassment. Harassment Comes in many forms, but in essence harassment is discrimination based on a protected class (race, gender, religion, pregnancy, age, disability), that becomes illegal when it threatens your employment or is considered intimidating, hostile, or abusive. That is a mouthful and very “legal.” It is important to note the major- ity of inappropriate workplace behavior does not qualify as harassment unless it is related to and targets a member of a protected class.67 This means if you’re a white American male under 40 with no disabilities, almost any form of mistreatment you experience will not qualify as harassment under the law. To be clear, any incivility is still problematic and potentially devastating, but harassment is relatively narrow in terms of legal qualifications. Sexual harassment is a pervasive and dramatically underreported form receiving greater attention in the recent past. As stated by Johnny C. Taylor, CEO of the Society of Human Resource Management, “Given that nearly every U.S. organization (98 percent) has a sexual harassment policy, clearly the problem is bigger than policy; it’s a matter of culture.”68 This means sexual harassment, like other forms of incivility we’ve discussed, extends beyond individuals to groups, teams, and organizations. The costs are enormous and growing, and thanks to the #MeToo movement attention also is growing. Cases filed with the Equal Employment Opportunity Commission (EEOC) doubled in just the first year following the movement, and claims paid by employ- ers increased from $47 million to $70 million. Regardless of your reaction to these num- bers, it is important to realize that many more cases are filed outside of the EEOC, in civil courts, and many more still are unreported (approximately 70 percent). As with other forms of incivility, the target individuals and the units in which they work both suffer negative Tarana Burke is credited with coining the term MeToo and igniting the movement in 2006. A tsunami of allegations and scandals related to sexual harassment and sexual assault in the workplace have been reported in recent years. Chelsea Guglielmino/FilmMagic/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 399Managing Conflict and Negotiations CHAPTER 10 consequences, as can the larger organization—damaged reputations, lost customers, and lost job candidates.69 Sexual harassment comes in two principal forms—quid pro quo and hostile work envi- ronment. Quid pro quo literally means “this for that.” If a person in power implies or explicitly demands sex in exchange for a benefit (raise) or preventing something undesir- able (termination), then this is quid pro quo. In contrast, “an intimidating or demeaning environment or situation that negatively affects a person’s job performance” is considered a hostile work environment. Among the many examples are inappropriate touching, sexual jokes or comments, offensive photos or e-mails, and repeated requests for dates.70 A few additional details are worth knowing: (1) the harasser’s conduct must be unwel- comed; (2) the victim does not have to be the target, but anyone who is affected by the conduct; and (3) any form of harassment is equally illegal and uncivil.71 How to combat sexual and other forms of harassment? Experts recommend: 1. Don’t make definitions and policies overly legal. Legal terminology is good for attor- neys, but it is best to create and communicate policies in simple language in terms relevant to your workplace. 2. Use relevant examples. Identify offensive behaviors most likely to occur in your par- ticular workplace, whether technically illegal or not, and explain why not to do them and what employees are expected to do when they occur or are observed. 3. Make it everyone’s responsibility. This needs to be communicated and clear channels for reporting known. Whom should you notify and how? Outside tip-lines can help. 4. Enforce top to bottom. Despite the high-profile cases associated with #MeToo, the fact remains that many perpetrators are people in power who are often protected. People need to believe every employee will be held accountable.72 Victim, Witness, or Perpetrator? Let’s conclude this section by having you assess not just your experience but also your actions. Completing Self-Assessment 10.4 can help you improve your own effectiveness. Bullying Scale—Target and Perpetrator Please be prepared to answer these questions if your instructor has assigned Self- Assessment 10.4 in Connect. 1. Which three example items do you most commonly experience? 2. What do you think are the causes of these examples? Try to identify causes across individual, group, and organizational levels using your OB knowledge. 3. To what extent do your most common experiences of being bullied match those you most commonly engage in? 4. Describe some things that could be done to prevent or reduce these acts of bullying. SOURCE: Glomb, Theresa M. “Predicting Workplace Aggression: Reciprocal Aggression, Organizational, and Individual Antecedents.” International Journal of Organization Theory and Behavior 13, no. 2 (March 2010): 249–91. https://doi. org/10.1108/IJOTB-13-02-2010-B005. SELF-ASSESSMENT 10.4 Another way to be more effective and helpful when witnessing incivility is to take the perspective of the target. Consciously think about what it is like to be him or her, walk in his or her shoes, and experience what that person is going through. It may sound trite but practicing the Golden Rule can go a long way in preventing inappropriate conduct. This simple approach can prove useful, because in the heat of conflict most parties are so focused on themselves that they never think to consider the other’s view. Remember that mistreatment has more victims than the actual target. Don’t be a silent bystander. Do your part to prevent and remedy various forms of incivility at school, work, and home. Organizational Behavior: A Practical, Problem-Solving Approach 400 PART 2 Groups Programming Functional Conflict Have you ever been on a team or committee that became so bogged down in details and procedures it accomplished nothing? Many of us have. These experiences are both a waste of time and frustrating. Thankfully, OB provides two programmed conflict techniques with proven track records to help break out of these ruts—devil’s advocacy and the dialectic method. Let’s explore each. Devil’s Advocacy One individual is assigned the role of devil’s advocate and identifies any potential shortcomings in the proposal. Figure 10.4 shows the steps in this approach. Note how devil’s advocacy alters the usual decision-making process in steps 2 and 3 on the left-hand side of the figure. The Dialectic Method The dialectic method involves a structured dialogue or debate of opposing viewpoints prior to making a decision. Steps 3 and 4 in the right- hand side of Figure 10.4 set the dialectic approach apart from common decision-making processes Pros, Cons, and Practical Advice on Programmed Conflict It is a good idea to rotate the job of devil’s advocate so no one person or group develops an unde- served negative reputation. Moreover, periodically playing the devil’s advocacy role is good training for developing analytical and communication skills and emotional intel- ligence. The strengths of this approach are critical thinking and reality testing, but a major drawback is that the goal of “winning the debate” might overshadow the issue at hand. The dialectic method also requires more skilled training than does devil’s advocacy. Research on the relative effectiveness of the two methods ended in a tie, although both methods were more effective than consensus decision making.73 However, another study showed that devil’s advocacy produced more potential solutions and made better recommendations for a case problem than did the dialectic method.74 Considering this mixed evidence, you have some latitude in choosing a method for breaking the logjams that sometimes occur. It is likely that personal preference and other members’ experiences may be the deciding factors in your decision. The important thing is to actively stimulate functional conflict when possible, such as when the risk of blind con- formity or groupthink is high. Apply your knowledge to manage conflict. LO 10-4 THE BIGGER PICTURE We extend your knowledge in this section by introducing several practical means for dealing with a variety of conflicts. Specifically, we explore ways to program or create functional con- flict, and you’ll also learn about various conflict-handling styles and when to use them. We then explore how to implement alternative forms of dispute resolution (ADR). Combined, the practical knowledge in this section will enable you to better manage conflicts and in turn influence important outcomes in the Organizing Framework. 10.4 EFFECTIVELY MANAGING CONFLICT Organizational Behavior: A Practical, Problem-Solving Approach 401Managing Conflict and Negotiations CHAPTER 10 Conflict-Handling Styles As with the many other individual differences you’ve learned about, people have stable preferences or styles for handling conflicts. Figure 10.5 distinguishes five of the most com- mon styles based on an individual’s relative concern for others (x-axis) versus concern for self (y-axis). Combinations of these produce the conflict-handling styles called integrating, obliging, dominating, avoiding, and compromising.75 Integrating: Interested parties confront the issue and cooperatively identify it, gener- ate and weigh alternatives, and select a solution. Obliging: Tends to show low concern for yourself and a great concern for others. Such people tend to minimize differences and highlight similarities to please the other party. FIGURE 10.4 Techniques for Stimulating Functional Conflict: Devil’s Advocacy and the Dialectic Method SOURCE: Cosier, Richard A., and Charles R. Schwenk. “Agreement and Thinking Alike: Ingredients for Poor Decisions.” The Executive 4, no.1 (February 1990): 69–74. A devil’s advocate decision program The dialectic decision method 6 The decision is monitored. 5 The decision to adopt, modify, or discontinue the proposed course of action is taken. 4 Any additional information relevant to the issues is gathered. 3 The critique is presented to key decision makers. 2 A devil's advocate (individual or group) is assigned to criticize the proposal. 1 A proposed course of action is generated. 6 The decision is monitored. 5 The decision to adopt either position, or some other position, e.g., a compromise, is taken. 4 Advocates of each position present and debate the merits of their proposals before key decision makers. 3 A conflicting counterproposal is generated based on di­erent assumptions. 2 Assumptions underlying the proposal are identified. 1 A proposed course of action is generated. Organizational Behavior: A Practical, Problem-Solving Approach 402 PART 2 Groups FIGURE 10.5 Five Common Conflict-Handling Styles SOURCE: Rahim, M. Afzalur. “A Strategy for Managing Conflict in Complex Organizations.” Human Relations 38, no. 1 (January 1985): 81–89. https://doi.org/10.1177/001872678503800105. Concern for self High Low Low High C on ce rn fo r ot he rs Dominating Integrating Obliging Avoiding Compromising Dominating: High concern for self and low concern for others, often characterized by “I win, you lose” tactics. The other party’s needs are largely ignored. This style is often called forcing because it relies on formal authority to force compliance. Avoiding: Passive withdrawal from the problem and active suppression of the issue are common. We addressed the pitfalls of avoiding conflict earlier. Compromising: Is a give-and-take approach with a moderate concern for both self and others. Compromise is appropriate when parties have opposite goals or possess equal power. Before you learn about the characteristics of these styles and the best situations in which to use each one, take Self-Assessment 10.5 to learn your own style. Then you’ll be able to see whether what you learn matches your style. Better still, you’ll better understand in which conflict situations your preferred style assists you and when it hurts you. For instance, wouldn’t you like to know when an avoiding style is most effective? Preferred Conflict-Handling Style Please be prepared to answer these questions if your instructor has assigned Self- Assessment 10.5 in Connect. 1. What is your style? On the surface, before reading below, does this make sense to you? Why or why not? 2. Describe a conflict you’ve experienced in which your conflict-handling style helped you. 3. Describe a conflict in which your style didn’t serve you well. Explain why. 4. Which style do you think would have been best for that particular conflict? SOURCE: Rahim, M. Afzalur. “A Measure of Styles of Handling Interpersonal Conflict.” Academy of Management Journal 26, no. 2 (June 1983): 368–76. https://doi.org/10.5465/255985. SELF-ASSESSMENT 10.5 CAREER READINESS When to Apply the Various Conflict-Handling Styles Consistent with the con- tingency approach described throughout this book, conflict resolution is not a “one style fits all” approach. Research and practice thankfully provide some guidance indicating which styles seem to work best in particular situations (see Table 10.7). Organizational Behavior: A Practical, Problem-Solving Approach 403Managing Conflict and Negotiations CHAPTER 10 TABLE 10.7 Styles for Handling Conflict and the Situations where they are Appropriate and Inappropriate STYLE APPROPRIATE INAPPROPRIATE Integrating 1. Issues are complex. 2. Synthesis of ideas is needed to come up with better solutions. 3. Commitment is needed from other parties for successful implementation. 4. Time is available for problem solving. 5. One party alone cannot solve the problem. 6. Resources possessed by different parties are needed to solve their common problem. 1. Task or problem is simple. 2. Immediate decision is required. 3. Other parties are uncon- cerned about outcome. 4. Other parties do not have problem-solving skills. Obliging 1. You believe that you may be wrong. 2. Issue is more important to the other party. 3. You are willing to give up something in exchange for something from the other party in the future. 4. You are dealing from a position of weakness. 5. Preserving relationship is important. 1. Issue is important to you. 2. You believe that you are right. 3. The other party is wrong or unethical. Dominating 1. Issue is trivial. 2. Speedy decision is needed. 3. Unpopular course of action is implemented. 4. Necessary to overcome assertive subordinates. 5. Unfavorable decision by the other party may be costly to you. 6. Subordinates lack expertise to make technical decisions. 7. Issue is important to you. 1. Issue is complex. 2. Issue is not important to you. 3. Both parties are equally powerful. 4. Decision does not have to be made quickly. 5. Subordinates possess high degree of competence. Avoiding 1. Issue is trivial. 2. Potential dysfunctional effect of confronting the other party outweighs benefits of resolution. 3. Cooling-off period is needed. 1. Issue is important to you. 2. It is your responsibility to make decision. 3. Parties are unwilling to defer. 4. Prompt attention is needed. Compromising 1. Goals of parties are mutually exclusive. 2. Parties are equally powerful. 3. Consensus cannot be reached. 4. Integrating or dominating style is not successful. 5. Temporary solution to a complex problem is needed. 1. One party is more powerful. 2. Problem is complex enough to need problem-solving approach. SOURCE: Rahim, M. Afzalur. “Toward a Theory of Managing Organizational Conflict.” International Journal of Conflict Management 13, no. 3 (October 2003): 206–35. https://DOI: 10.2139/ssrn.437684. When to Avoid Pamela Valencia, an organizational development consultant and trainer to Fortune 500 companies, recommends avoiding when: You decide that the conflict has no value, and that you’re better off saving your time and energy for other matters. Additionally, this can be a good temporary solution if you need more time to gather facts, refocus, take a break, or simply change the set- ting of the conflict. However, be sure not to avoid people in your attempt to avoid conflict—don’t be evasive.76 Organizational Behavior: A Practical, Problem-Solving Approach 404 PART 2 Groups Why Styles Matter Because conflict is so pervasive, it is no surprise that researchers and managers have both devoted considerable attention to the topic. Key points about conflict-handling styles follow: 1. Culture. Conflict-handling styles are not just an individual-level phenomenon. Depart- ments and entire organizations can develop the same styles—integrating, dominating, and avoiding. And leaders’ own styles have the greatest influence in determining which style becomes embedded in the group or organization. 2. Results. Cooperative styles (integrating and obliging) improved new-product development performance between buyers and suppliers across several industries in Hong Kong. In contrast, uncooperative styles (dominating and avoiding) increased numerous types of conf licts and hampered new-product develop- ment. Compromising had no effect on performance in these same situations.77 New-product development relationships are increasingly important in the global economy. Give careful consideration to the styles you use when working with such partners. 3. Reduced turnover. Research with nurses showed that those with high levels of emotional intelligence were more inclined to use collaborative conflict-handling styles and less likely to use accommodating styles.78 Given the intense shortage of nurses in many parts of the world, turnover is a critical and top-of-the-mind issue for nursing managers and health care administrators alike. Therefore, reducing conflict (bullying) is an important and effective means for reducing turnover. 4. You vs. Others. As you learned regarding personality conflict above, it is important to consider your style versus that of the other person(s) in the conflict. Your styles might be at odds, but it might also be your personalities. The OB in Action box can shed light on this and help. The following advice is useful to consider with any  type of conflict, but especially if it is personal or you think it is due to differing conflict handling styles. 1. Look in the Mirror. First, ask yourself: How am I contributing to this conflict? It is possible “you didn’t start it,” but often your reaction or inaction played a role. 2. Styles Alignment. How does your conflict han- dling style influence the conflict? What do you think is the conflict handling style of the other person? Use this Information to guide your efforts. 3. Look for the Sunshine, Not the Rain. The other person often tries to help resolve the situation; be sure to look for and acknowledge these efforts. It’s as simple as saying, “I know we differ, and I appreciate your attempts to improve the situation.” 4. Talk! Calmly talking to the person is generally an essential, albeit obvious, part of the solution to any conflict. (Remember, avoiding a conflict rarely makes it go away.) 5. Keep Communicating. Too often during conflict people avoid or otherwise limit communication and contact. Don’t. 6. Be Equitable If Not Equal. The point is to be sure not to single out the person with whom you have a conflict, still include them in meetings, e-mails, and social activities, such as the daily Maybe It’s a Difference in Style, and Maybe It’s Yours79 OB in Action Organizational Behavior: A Practical, Problem-Solving Approach 405Managing Conflict and Negotiations CHAPTER 10 In the next section you’ll learn about alternative means for resolving conflicts, collec- tively called ADRs. Third-Party Interventions: Alternative Dispute Resolution (ADRs) Disputes between employees, between employees and their managers or employers, and between companies too often end up in lengthy and costly court battles. U.S. businesses spend hundreds of billions of dollars per year on direct legal costs, but this number is puny when compared to indirect legal costs, such as opportunities not pursued due to litigation concerns, disclaimers, and extra testing. All such costs are ultimately passed on to con- sumers in the form of higher prices.80 A more constructive, less expensive approach called alternative dispute resolution has grown rapidly in recent years. Alternative dispute resolution (ADR) is a means for solv- ing disputes using an independent third party and avoids the costs and problems associated with litigation or unilateral decision making.81 The Many Forms and Progression of ADR You may not realize it, but you already know a few forms of ADR, such as peer review, arbitration, and mediation. These tech- niques represent a progression of steps third parties can take to resolve conflicts, and they have the following benefits when compared to litigation: 1. Speed. Mediation, for example, often takes only a few hours and has a 70 to 80 per- cent success rate. This track record is in stark contrast to the months or even years it can take for cases to get through litigation. 2. Low cost. ADRs generally cost 90 percent less than litigation. 3. Confidentiality. ADRs provide near-complete control over what’s disclosed and what’s not, which contrasts with legal proceedings which are in the public record. Moreover, ADR decisions are rarely formalized like the outcomes of lawsuits, which means there is no record to be made public or to use as precedent in future conflicts. 4. Winning solutions. Courts decide based on the law, and their decisions are almost always win or lose, with one party writing a check to the other. ADRs, in contrast, can reach win–win solutions arranged by the parties themselves.82 Table 10.8 ranks forms of ADR from easiest and least expensive to most difficult and costly. Read the nearby Problem-Solving Application case and perhaps you’ll decide a form of ADR is appropriate. Whether you do or not, Wendy’s clearly has a conflict. lunch group if that applies. Separation is a form of avoidance and is often viewed as punishment and escalation. 7. Agree to Disagree. Sometimes you just won’t agree, and in some proportion of these situa- tions you don’t have to. Therefore, consider agreeing to disagree on a particular view or method, and instead focus on the outcome. YOUR THOUGHTS? 1. Think of a conflict you’ve had that would benefit from each of the points above. 2. Identify a current conflict and determine which of the above applies and could help. 3. Explain which of the above tactics you would use and how you could apply them to a team on which you are a member at work or school. Organizational Behavior: A Practical, Problem-Solving Approach PART 2 Groups406 TABLE 10.8 Different Forms of Alternative Dispute Resolution (ADR) FORM OF ADR DESCRIPTION Facilitation A third party, usually a manager, informally urges disputing parties to deal directly with each other in a positive and constructive manner. Conciliation A neutral third party informally acts as a communication conduit between disputing parties. This is appropriate when conflicting parties refuse to meet face-to-face. The immediate goal is to establish direct communication, with the broader aim of finding common ground and a constructive solution. Peer Review A panel of trustworthy coworkers, selected for their ability to remain objective, hears both sides of a dispute in an informal and confidential meeting. A decision by the review panel may or may not be binding, depending on the company’s ADR policy. Membership on the peer review panel often is rotated among employees.83 Ombudsman Someone who works for the organization and is widely respected and trusted by his or her coworkers, hears grievances on a confidential basis and attempts to arrange a solu- tion. This approach, more common in Europe than in North America, permits someone to get help from above without relying on the formal chain of hierarchy. Mediation A neutral and trained third party guides the others to find innovative solutions to the conflict. To ensure neutrality, many organizations hire ADR qualified outsiders. Unlike an arbitrator, a mediator does not render a decision. It is up to the disputants to reach a mutually acceptable decision. The Equal Employment Opportunity Commission (EEOC) implemented mediation in the 1990s and cut the average time to resolution by 80 percent!84 Arbitration Disputing parties agree ahead of time to accept the decision of a neutral arbitrator in a formal court-like setting, often complete with evidence and witnesses. Statements are confidential, and decisions are based on the legal merits of the case. Trained arbitra- tors, typically from outside agencies such as the American Arbitration Association, are versed in relevant laws and case precedents. In many instances, employee arbitration is mandatory for resolving disputes. Heated debate has occurred over the past several years, however, regarding mandatory versus voluntary arbitration. On the one hand, many employers have not reaped the time and cost savings promised by arbitration and now prefer to litigate. On the other, many employees feel arbitration unfairly benefits employers, who hire skilled arbitrators whose job it is to handle such disputes.85 Food Fight on Campus86 A conflict between Wendy’s and students at col- leges across America is growing and at the root are tomatoes. Protestors are pressuring the ham- burger chain to purchase its tomatoes from suppli- ers who participate In the Fair Food Program (FFP). This program isn’t so much about food as it is the farm workers who grow, pick, process, and ship tomatoes. Who Are the Players and What Is Their Mission? The FFP is an initiative by the Coalition of Immo- kalee Workers, which is a worker-based human rights organization that originated in Immokalee, Florida. (You’ll learn more about coalitions In Chap- ter 12.) The coalition’s aim is to improve labor stan- dards for farm workers. The goals of the coalition and the FFP are to prevent modern-day slavery, Problem-Solving Application Organizational Behavior: A Practical, Problem-Solving Approach 407Managing Conflict and Negotiations CHAPTER 10 sexual assault, harassment, unfair compensation, and other abuses rampant in the industry. Advo- cates of the program claim the FFP and Immokalee have had dramatic and positive effects. For instance, the program now covers about 35,000 workers, largely In Florida, and has raised standards for the tomato industry in that state from one of the lowest to nearly the best in only a decade. For their part, FFP participants such as Subway, Whole Foods, and Trader Joe’s purchase tomatoes only from farmers in the program. They also agree to pay 1 to 4 cents more per pound of tomatoes, and the growers in turn agree to pay workers at least the local minimum wage and a bonus in each paycheck; provide training regarding sexual harass- ment and assault; offer reasonable working condi- tions (shade and water) and hours, and a 24-hour independent hotline for complaints; and submit to intensive auditing by third parties. Why the Beef with Wendy’s? Wendy’s is a more recent target of these efforts as they have quit buying from Florida sources and FFP participants. Instead, the company now gets most tomatoes from farms in Mexico where labor standards are much lower. This contrasts with McDonald’s, Walmart, and other major brands who buy from FFP suppliers. These factors combine to intensify the conflict. For instance, when major brands, like Wendy’s, don’t participate it signals to other buyers in the industry it’s okay not to purchase from FFP suppliers, which is then interpreted as a lack of concern and oversight of worker well-being. Wendy’s has countered by saying it plans to pur- chase most of its tomatoes from greenhouse farmers In the U.S. and Canada, but this does little to alleviate the concerns of its critics. They argue conditions in greenhouses are just as inhumane as those found in non-FFP farms, and third party reviews done outside of the FFP are superficial at best. Pressure Grows Workers and students have pressured universities to insist Wendy’s locations on their campuses sign on to the FFP or be ousted. They are in effect borrowing a page from the playbook used against Taco Bell in the early 2000s, which resulted in that company signing on and being the first major company to do so. Both companies are susceptible to this pressure, as a key segment of their customer base is people in their 20s. The outcomes are not as simple as yes or no, participate or don’t. A student boycott caused a Wendy’s franchise at the University of Michigan to not renew its lease. Presumably the franchisee will relocate and purchase outside of the FFP as in the past. Mayors and local legislators in other college towns—University of Florida (Gainesville) and Uni- versity of North Carolina (Chapel Hill)—have pre- sented resolutions urging Wendy’s stores on their campuses to join the FFP. Immokalee workers, along with others, are protesting in some of these same college towns. Wendy’s Is Not Alone Costco, Publix, and Kroger do not participate in the FFP. For its part, Publix said it views the entire issue as a dispute between its suppliers and their employees, and as such it is not their business. With so many large brands not participating, the market for non-FFP tomatoes is significant, which means despite the challenges for some growers, many others still feel little pressure to ensure higher labor standards in order to sell their products. Assume you are the CEO of Wendy’s and have decided to address this conflict on behalf of the entire company. First, identify with whom the conflict exists, then apply the 3-Step Problem-Solving Approach defining the problem, identifying the causes, and what to do about it. Note: Conflict itself Is not a problem. Apply the 3-Step Problem-Solving Approach Step 1: Define the problem in this case. Step 2: Identify the potential causes. Step 3: Make your recommendations. We close this section with a reminder. The time to consider the various forms of ADR is when a conflict first arises. And regardless of the issue, you are wise to evaluate likely costs and opportunities associated with conflict before it escalates and causes legal action, fees, and anger. Once these things happen more functional or constructive outcomes are increasingly difficult. Organizational Behavior: A Practical, Problem-Solving Approach 408 PART 2 Groups Negotiation is a give-and-take decision-making process between two or more par- ties with different preferences. Common negotiations occur over salary, flextime and hours, and job location. Negotiation is even more important today given the increasingly complex and competitive workplace, wherein you’re expected to accomplish more things, in more places, with more people, which increases the value of your negotiation skills. Before we dive into the types of negotiation and other pertinent details, it is important to address how you think of negotiation. Professor Linda Babcock of Carnegie Mellon University and author of Ask for It: How Women Can Use the Power of Negotiation to Get What They Really Want explains how many people think of negotiation as a form of con- flict, even if only subconsciously. This means they view it in terms of “I have to win or at least avoid losing.” As you learned earlier in the chapter, there are many reasons people avoid conflict which means they also are likely to avoid negotiating as frequently or as well as they should.87 We therefore encourage you to be mindful and not think of negotiation as a conflict. Instead, framing negotiation as an art, a skill, a task, or even a game can greatly and posi- tively impact your attitude, approach, and outcomes. Let’s move on. Two Basic Types of Negotiation Negotiation experts often distinguish between two fundamental types of negotiation— position-based (distributive), and interest-based (integrative). Understanding the differ- ence has great practical value. Position-Based vs. Interest-Based A distributive negotiation usually concerns a single issue—a “fixed pie”—in which one person gains at the expense of another.88 This win–lose approach is arguably the most common type of negotiation and is character- ized by dividing up the pieces of a pie. Haggling over the price of a car is a position-based or distributive negotiation. You have a particular price you want, and you get it only if the seller compromises on the price he or she desires. Many conflicts, however, bring together a variety of interests (not just the price of a car), and each party in the negotiation values those interests differently. The outcome is no longer a fixed pie distributed among all parties, but instead multiple interests are inte- grated into a mutually satisfying solution. Such scenarios call for integrative negotiation, in which numerous interests are considered, resulting in an agreement that is satis- factory for both parties.89 This kind of interest-based negotiation is a more collaborative, problem-solving approach. As one group of researchers puts it, instead of dividing a pie, as in position-based negotiation, interest-based negotiations often generate win–win outcomes—one party gets the crusts and the other the fruit (the part each prefers). Interest- based negotiations may even lead to creative solutions. The parties may decide to build a pie factory together instead of negotiating over individual pies.90 Implement your negotiation skills. LO 10-5 THE BIGGER PICTURE Life is an endless series of negotiations. It therefore is valuable to better understand negotia- tion and related strategies. We discuss different forms and tactics of negotiation in this sec- tion because they are both the cause and remedy of many conflicts. You’ll also notice that negotiations can influence outcomes across all three levels of the Organizing Framework. 10.5 NEGOTIATION Organizational Behavior: A Practical, Problem-Solving Approach 409Managing Conflict and Negotiations CHAPTER 10 Table 10.9 describes some key differences between conventional position-based nego- tiation and the more collaborative interest-based process. Applying a Collaborative Interest-Based Approach The collaborative, interest- based approach is explicitly based on problem solving and can be applied between two or more individuals, between an individual and a group, or between two or more groups. The following protocol is followed by renowned negotiator Christina Merchant.91 1. Define and frame the issue in terms of parties’ interests. 2. Explain the respective interests (listen, learn, and share). 3. Explore expanding the pie (create value rather than claiming it). 4. Generate options. 5. Evaluate options in light of the interests described in step 1. 6. Choose the option that best meets the interests described. 7. Develop and agree on a plan of implementation. Factors to Consider in All Negotiations Regardless of your negotiation approach, finding areas of common ground can be difficult. Successful negotiators weigh multiple issues and gather information about which are most important to the other parties and why. Research and practice provide some helpful hints: • Know who you are. Personality matters. Research shows people with high levels of agreeableness are best suited for integrative negotiations, whereas those low in this personality characteristic are better at distributive negotiations.92 Why do you think this is? • Manage outcome expectations. In most negotiations, each party has an expected outcome and compares it to the actual outcome.93 Skilled negotiators manage expectations in advance of actual negotiations. For example, if two people paid $35,000 for a car, then the one who expected to pay $33,000 was disappointed and the one who expected to pay $37,000 was delighted. Similarly, managers will often send out a message saying, “It’s been a tough year” in advance of annual reviews and salary discussions to help adjust expectations. TABLE 10.9 Key Characteristics of the Two Fundamental Forms of Negotiation POSITION-BASED NEGOTIATION INTEREST-BASED NEGOTIATION Adversarial Partner Focus on winning Focus on challenge to be met Acquire the most value Create value for all parties Personal goal focused Solution focused Impose or sell your own position Find mutual interests and satisfaction Use salesmanship and manipulation Make honest disclosure of respective interests Choose between relationship and achieving goals Emphasize relationship and substance Yield reluctantly to other positions/ interests Be open and willing to yield Outcomes are win–lose or compromise Win–win collaborative outcomes are possible SOURCE: Campbell, Kevin, and Rosemary O’Leary. “Big Ideas for Big Problems: Lessons from Conflict Resolution for Public Administration.” Conflict Resolution Quarterly 33 (October 2015): 107–19. https://doi.org/10.1002/crq.21146. Organizational Behavior: A Practical, Problem-Solving Approach 410 PART 2 Groups • Adhere to standards of justice.95 Not only do the outcomes need to be perceived as fair (distributive justice), but so too do the processes by which they were attained. No one likes to be taken advantage of, which can happen when they have incom- plete information. Again, think of buying a new car where the dealer knows all the numbers, and despite the best information the Web has to offer, you are still never as well informed. • Remember your reputation.96 You may “win” today only to foreclose opportunities in the future. Put another way, winning at all costs often has significant costs! Considering these factors can help you decide whether you should pursue a particular position (you win, they lose), or if you’re better off reaching an interest-based agreement that leaves both parties satisfied. The OB in Action box provides an opportunity to apply your knowledge. Many people say we are negotiating all the time and throughout our lives. Buying a car is one such instance. These transactions are excellent oppor- tunities to apply your OB knowledge and improve your outcomes—more car for less money. Adam Gault /OJO Images Ltd/Alamy Stock Photo • Consider the other person’s outcome.94 Of course you negotiate for your own benefit, but it also matters how the other party fares—is he or she satisfied? When you watch shows on TV or your device, three of the major players involved in their creation are writers, agents, and studios. Writers write, studios buy, and agents are in between making these deals happen. The Writers’ Guild (a union representing thousands of writers for TV and movies) and the Association of Tal- ent Agents (a union representing major agencies) are locked in a heated battle over the terms of their agree- ment that have been in place since the mid-1970’s. Issues. Writers have two principle complaints and are willing to go on strike to affect change. First, they take issue with agents “packaging” a group of writ- ers for a given project. The agents get paid a pack- aging fee by the studios, in exchange for arranging all of the writers for a project, saving the studio from having to identify and negotiate with each writer individually. From the studios’ perspective this is more efficient and perhaps, but not necessarily, less Who Is Going to Eat More Pie, Writers or Agents?97 OB in Action Organizational Behavior: A Practical, Problem-Solving Approach 411Managing Conflict and Negotiations CHAPTER 10 Many people believe good negotiators show no emotion, like Roger Federer on the tennis court. But as you’ve learned, emotions are an integral part of the human experience and of almost everything we do. Let us learn how they affect negotiations next. Emotions and Negotiations Negotiation experts and researchers provide guidance on how to use emotions to your advantage. Remember that emotions are contagious. If you want the other party to be calm, creative, or energetic, consider showing these emotions yourself.98 Preparation is critical to effective negotiations. The following tips can help you pre- pare emotionally for an upcoming negotiation. 1. Identify your ideal emotions. How do you want to feel going into the negotiation? Why? Many people answer this question quickly and say, “calm but assertive,” but when probed further they reveal other, if not competing, emotions. The challenge is to realize which emotions will best suit your objectives and be mindful of them while negotiating. 2. Manage your emotions. What can you do in advance to put yourself in the ideal emo- tional state? Promote positive emotions. Choose appropriately—meditation to calm you down or perhaps music that pumps you up. If you are ambushed or put on the spot, such as by an unexpected phone call or somebody stopping by your office, buy some time and say to your negotiating partner, “I just need to wrap up what I’m doing, and I’ll call you back in 10 minutes.” This will give you time to regain the appropriate emotional state. 3. Know your hot buttons. What can throw you off balance? Some people seem eternally patient, others get frustrated easily, and some negotiators try to push your hot buttons as a deliberate tactic. Know your own tendencies and be sure to manage them appro- priately. 4. Keep your balance. Everyone loses balance occasionally. How will you regain yours if lost? Taking a break is a good idea. Stepping out, going to the restroom, or simply call- ing a “time-out” can provide a break in the action and enable you to regroup. These same tactics can redirect a negotiation that has gone in the wrong direction. You may also want to redirect to higher-level issues, especially if you are getting bogged down in details. 5. Identify your takeaway emotions. How do you want to feel when you’re finished? Many people say, “relieved,” which signifies the stress many of us feel while negotiating. costly. The writers, however, argue this money should go to them and not the agents. Their position is reinforced by the claim compensation for their work is either stagnant or declining, despite the cur- rent time period being heralded as high-times for TV, due in large part to streaming service expanding the TV universe and generating demand for more con- tent (writers and their writing). Second, a number of major agencies (William Morris Endeavor, Creative Artists, and United Talent) are now producing their own shows, which histori- cally has only been done by studios. This means they now generate their own content, what writers provide, which then is sold to studios. Writers claim this is a conflict of interest as they are now compet- ing with the people who are supposed to represent them and sell their work. Potential Actions. The contract formalizing the arrangement has expired, and if the agencies don’t come around the writers have been instructed to fire agencies, work directly with studios, and do their own deals on their own terms. For their part, agen- cies have threatened to sue claiming it is unlawful (in some states) for writers’ managers and attorneys to act as agents. Also, the agents are unwilling to give up the practices challenged by the writers. YOUR THOUGHTS? 1. What would you do if you were representing the writers? The agencies? Explain. 2. Which conflict handling style do you think is most suitable for each representative? 3. Do you think this scenario is best suited for a dis- tributive, integrative, or ADR approach? Explain. Organizational Behavior: A Practical, Problem-Solving Approach 412 PART 2 Groups Others say, “satisfied,” which speaks more to performance. Whatever the case for you, set goals for emotions just as you do for other outcomes in negotiations (and in the Organizing Framework).99 Do emotions affect position-based and interest-based negotiations differently? The answer appears to be yes. Research showed expressing emotional ambivalence—not clearly positive or clearly negative—can be detrimental in position-based negotiations. The ratio- nale is that it invites the other side to be assertive and take advantage of you. However, in interest-based negotiations emotional ambivalence was shown to increase value creation. Being ambivalent, rather than clearly positive or negative emotionally, tends to facilitate cooperation and allow you the opportunity to integrate the negotiators’ interests.100 Nonverbal communications also help convey your emotions during negotiations. You can smile, laugh, or flinch in reaction to a first offer, for example. These actions signal your counterpart that his or her proposal is unacceptable.101 Although the Winning at Work feature at the beginning of this chapter addressed negotiating salaries and pay raises, we feel the topic is so important that we offer addi- tional insights at the end of this negotiation section. Our intention is for you to combine the knowledge you’ve acquired throughout the chapter to become more effective, and to this end we describe exchanges and associated scripts to help during these crucial conver- sations in the following Applying OB box. Applying OB Knowing what to say can build your efficacy (Chapter 3) and shape a more positive attitude (Chapter 4) around your negotiations, which by themselves are likely to improve the outcomes of your efforts. The scripts below are equally useful when used via e-mail, over the phone, or face-to-face. Salary Discussions During the Interview Interviewer: “What’s your current salary?” Your responses: “I’m not really comfortable shar- ing that information. I would prefer to focus on the value I can add to this company and not what I’m paid at my current job.” (Note: Such questions are increasingly illegal In many states.) Interviewer: “What’s your expected salary?” Your response: “I want this move to a be a big step forward for me in terms of both responsibility and compensation.” Note: If a prospective employer seems hung up on or overly determined to learn your current pay and expec- tations, this may be a red flag, suggesting they are try- ing to underpay and get a bargain. Beware. Getting More After Receiving an Offer: The Counter Offer Josh Doody, author of Fearless Salary Negotia- tion,  recommends considering four elements when determining your counter request: (1) salary offered, (2) your minimum acceptable salary (your walk away number), (3) your perception of how bad they want you to accept, and (4) how bad you need/want the job. Prospective employer: The company offered you $45,000. My response: “I appreciate the offer. I however feel $50,000 would more accurately reflect the impor- tance and expectations for this position, especially considering my qualifications and experience.” If you’re fortunate enough to have an actual offer from another company, then consider saying: “Thank you for this offer. As I mentioned during the interview process, I’m speaking with multiple com- panies. If you’re able to adjust your offer to $50,000, then I would be eager to accept.” The company’s counter will likely be somewhere in between, in which case Doody recommends antici- pating these amounts and creating a script. For instance, using the example above, if the company comes back with $49,000 accept outright. If the company comes back with a lower number and seems firm, consider accepting that number along with something else of value to you, such as vacation time, working from home, or a signing bonus. Identify How to Ask for More Money102 CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 413Managing Conflict and Negotiations CHAPTER 10 and prioritize your preferences so you know the appro- priate order and value. For example: Company: “The best we can do is $47,500.” Your response: “I understand that is the most you can offer in terms of salary, but if you can add in an extra week of vacation time, then I’m on board.” If they say, no, then move to your second most valu- able benefit, perhaps working from home one day per week or a $4,000 signing bonus. Once they agree, you’re finished. Don’t try for more. Asking for a Raise Typically, the motive for asking is you feel your value to the company has increased over time and is not reflected in your salary. Put differently, your salary was set some time ago, and now you have more experience and have made real contributions. Doody recommends making the request via e-mail. “Boss, during our next meeting I would like to dis- cuss compensation. It has been X period of time since I was hired or received a raise, and I would like to revisit my compensation now that I’m contributing more to the company. I’ve done some research and it appears the mid-point for this job in this industry is $Y. I thus would like to request a pay raise to (insert target amount).” It is a good idea to include your accomplishments and justification for the raise in addition to the market value of the job. Realize, however, the raise is for you, not the job. “Always remember, your talent Is precious, and you deserve to be compensated for It. Learning to fos- ter conversations about compensation is a vital skill that yields rewards.” TABLE 10.10 Questionable and Unethical Tactics in Negotiations TACTIC DESCRIPTION/CLARIFICATION/RANGE Lies Subject matter for lies can include limits, alternatives, the negotiator’s intent, authority to bargain, other commitments, acceptability of the opponent’s offers, time pressures, and available resources. Puffery Among the items that can be puffed up are the value of one’s payoffs to the opponent, the negotiator’s own alternatives, the costs of what one is giving up or is prepared to yield, importance of issues, and attributes of the products or services. Deception Acts and statements may include promises or threats, excessive initial demands, careless misstatements of facts, or asking for concessions not wanted. Weakening the opponent The negotiator here may cut off or eliminate some of the opponent’s alternatives, blame the opponent for his own actions, use personally abrasive statements to or about the opponent, or undermine the opponent’s alliances. Strengthening one’s own position This tactic includes building one’s own resources, including expertise, finances, and alli- ances. It also includes presentations of persuasive rationales to the opponent or third parties (e.g., the public, the media) or getting mandates for one’s position. Nondisclosure Includes partial disclosure of facts, failure to disclose a hidden fact, failure to correct the opponents’ misperceptions or ignorance, and concealment of the negotiator’s own position or circumstances. Information exploitation Information provided by the opponent can be used to exploit his weaknesses, close off his alternatives, generate demands against him, or weaken his alliances. Maximization Includes demanding the opponent make concessions that result in the negotiator’s gain and the opponent’s equal or greater loss. Also entails converting a win–win situation into win–lose. Now let’s close this section and chapter with a discussion of ethics and negotiations. Ethics and Negotiations Many people believe ethical negotiations are impossible, as individuals are self-interested and will lie or otherwise deceive the other party the vast majority of the time in order to get their desired outcome. (See Table 10.10 for a list of common questionable and unethical Organizational Behavior: A Practical, Problem-Solving Approach 414 PART 2 Groups negotiation tactics.) Accordingly, most negotiation research focuses on and shows that unethical tactics may have short term benefits but generally long-term costs, notably, reduced trustworthiness and financial gains, as well as increased motivation by the deceived to retaliate.103 But reality isn’t that simple. Like many other processes and out- comes in the Organizing Framework, the causes of unethical negotiation behaviors can be both person and situation factors. Person Factors and Ethical Negotiations. Personality has been extensively stud- ied and linked to first impressions of and satisfaction with negotiation partners, distributive and integrative negotiation success, and speed of reaching final agreements, among others. An especially relevant individual difference is moral character, which represents an individual’s general tendency to think, feel, and behave in ways associated with ethical and unethical behavior.104 As such, the assumption is that people with high moral character are less likely to use the questionable tactics (see Table 10.10) and will instead have more ethical and positive negotiation related attitudes, motives, and behaviors.105 Situation Factors and Ethical Negotiations. However, as you know by now, situa- tion factors often influence person factors to produce outcomes different from what you might expect. The same is true for negotiations. Incentives and dysfunctional competition— where one party goes to any means to win—can influence otherwise well-intentioned ethical negotiators. Also interesting is that groups tend to lie more often than individuals, which suggests you may want to be especially careful when negotiating between teams, depart- ments, or organizations.106 The rationale is the responsibility (guilt) is shared or diffused among many people, as would any potential consequences. Well, What’s the Answer? After considering all of this, you’re likely still left wonder- ing—how do I determine what is ethical and what is not during negotiations? Sadly, the answer isn’t simple either, but research provides three criteria to consider.107 1. Intent. If the deception is pro-social (benefits the target) it may be considered ethical, whereas if information is withheld for your personal benefit then you have likely crossed the line. When or why might you do deceive someone for their benefit? To build goodwill, show good faith, because you’re generous, or because the other person may indeed benefit more than you. 2. Content. Modifying your emotions to achieve a better outcome is viewed by many as more acceptable than it is to change, omit, or lie about information. For instance, fak- ing great disappointment with the process, offer, or outcome, or alternatively pretend- ing to like the person illustrate deceptive emotions. Information can be manipulated by providing false prices or dollar amounts (the most you’ll pay or the least you’ll accept), or actually fabricating false information or lying about facts. Put more simply, change your emotions but not the facts. 3. Activity. Lies of omission occur when one fails to reveal relevant information, and lies of commission are just that, lies, as we commonly understand them—offering false information. “The car’s transmission is like new,” when in fact it isn’t and has never been serviced is a lie of commission. A lie of omission would be not telling the buyer that the transmission has problems when you know it does. One last thing to consider. Assume you’re searching for a job and have no offers in hand. Would you still tell a prospective employer you do have concrete offers? Or, assume you’ve been offered the job and the salary is $60,000. Would you say you have another and higher offer, even if you didn’t, in an attempt to get the other party to boost the salary? Are these tactics ethical? It might be worth answering these questions for yourself. Let’s close the chapter with some practical and pointed applications. Organizational Behavior: A Practical, Problem-Solving Approach 415Managing Conflict and Negotiations CHAPTER 10 THE BIGGER PICTURE We conclude this chapter with a number of practical applications for managing conflict and negotiations to improve your effectiveness as both an employee and manager. 10.6 MAKING THE CONNECTION: HOW CAN MANAGING CONFLICT AND NEGOTIATING GIVE ME AN ADVANTAGE? Takeaways for Me We highlight eight practical nuggets for you. 1. Realize that not all conflict is bad or should be avoided. Some amount of functional conflict is desirable and can help you develop as an individual. Be especially mindful of this if you run your own business or wish to do so someday. Conflict can lead to growth. 2. Be sure to tend to dysfunctional conflict and don’t allow it to escalate, costing you jobs and relationships. 3. Personality conflicts are almost certain to happen. Table 10.3 can be helpful in dealing with them. 4. Be mindful of work–school–family conflicts. The way you manage them can dramati- cally affect your personal fulfillment and flourishing in life. Do what you can to bal- ance demands from the various arenas of your life and look for companies that are also mindful of this and have family-friendly policies and leaders. 5. Beware of the many forms of incivility at work. Don’t underestimate their causes and effects. Beyond what your employer requires through policies and practices, civility, like ethical conduct, starts with the behavior of individuals. Table 10.6 can help clarify what to do. 6. Use your knowledge of conflict-handling styles and your own preferences to be more effective when dealing with groups and teams. Table 10.7 is an excellent guide to which style to use in a given situation. 7. Continue to expand your knowledge and skill using interest-based negotiations. Doing so can help you avoid and overcome the resistance common in position-based negotia- tions. You’re often better off to approach the other parties as partners than adversaries. 8. The knowledge and tools in this chapter are essential if you hope to manage people effec- tively. Apply your knowledge and build your skills! Takeaways for Managers We provide seven practical steps for you as a manager. 1. Distinguish between conflict states and conflict processes. Doing so will make you more effective at avoiding and remedying conflict as a manager. 2. Managing intergroup conflict can make or break your own opportunities and successes. Perhaps the single best way to prevent such conflicts, as well as to deal with them, is to create a psychologically safe climate. Describe the implications of managing conflict and negotiations for you and managers. LO 10-6 Organizational Behavior: A Practical, Problem-Solving Approach 416 PART 2 Groups 3. Beware of the many forms of incivility at work. As a manager you are responsible for knowing what is happening, intervening, and following up. Do not underestimate how destructive incivility is to individuals, your team, and your larger organization. Not only the targets suffer. Your own actions are the single most powerful tool you have. Don’t tolerate bad behavior. Use Table 10.6 as a guide. 4. Utilize devil’s advocacy and the dialectic method to arrive at better decisions and be more inclusive. 5. Use your knowledge of conflict-handling styles and of your own preferences to become more effective when dealing with groups and teams. Table 10.7 is an excellent guide for which style to use in a given situation. 6. Become familiar with the alternative dispute resolution choices and use the appropriate remedy (Table 10.8). 7. Taking an interest-based approach to negotiating with those you manage, and more gen- erally with those with whom you work, can improve their level of trust in you and thereby boost your effectiveness. To summarize, conflict and negotiations are affected by and in turn influence many elements in the Organizing Framework. They can determine your personal satisfaction and performance throughout your professional life. Apply your knowledge of conflict and negotiation to realize its true value and enhance your own effectiveness. Organizational Behavior: A Practical, Problem-Solving Approach 417Managing Conflict and Negotiations CHAPTER 10 In this chapter you learned that by managing con- flict and applying sound principles in negotiation, you gain an advantage in working for better out- comes at work, school, and home, and across all levels of organizations. Reinforce and consolidate your learning with the Key Points and Organizing Framework. Then challenge your mastery of the material by completing the Problem-Solving Application Case and Legal/Ethical Challenge. Key Points for Understanding Chapter 10 You learned the following key points: 10.1 A CONTEMPORARY VIEW OF CONFLICT • Conflict is the energy created by the per- ceived gap between what we want and what we’re experiencing. • Conflict can be either functional or dysfunc- tional. • People avoid conflict for many reasons; how- ever, doing so can cause it to escalate. 10.2 CONVENTIONAL FORMS OF CONFLICT • Common forms of conflict are personality and intergroup. • Personality conflicts can be overcome with or without the help of others. • Contact and safety climates can help prevent intergroup conflict. 10.3 FORMS OF CONFLICT INTENSIFIED BY TECHNOLOGY • Work–life conflict is the perception expecta- tions and demands between work and non- work roles are mutually incompatible. • Designate time, designate space, and share responsibilities to help overcome work–life conflict. • Incivility (bullying and harassment) has nega- tive consequences not only for targeted employees but also for coworkers who witness it. 10.4 EFFECTIVELY MANAGING CONFLICT • Functional conflict can be fostered using pro- grammed conflict, devil’s advocacy, and the dialectic method. • Five common conflict-handling styles are inte- grating, obliging, dominating, avoiding, and compromising. • Forms of alternative dispute resolution (ADR) include facilitation, conciliation, peer-review, ombudsman, mediation, and arbitration. 10.5 NEGOTIATION • Negotiation is a give-and-take decision- making process involving two or more parties with different preferences. • Position-based negotiation focuses on a sin- gle issue and dividing a fixed pie. • Interest-based negotiation seeks agreements that serve both parties varied interests. • Emotions and ethics affect negotiations. 10.6 HOW CAN MANAGING CONFLICT AND NEGOTIATING GIVE ME AN ADVANTAGE? • Understanding and dealing with conflict is critical to your job and career success. • An inability to manage conflict is a common reason managers don’t succeed or advance to higher levels of responsibility. The Organizing Framework for Chapter 10 As shown in Figure 10.6, you learned that conflict is an inevitable part of organizational life and serves as an especially important group/team-level What Did I Learn? Organizational Behavior: A Practical, Problem-Solving Approach 418 PART 2 Groups process of negotiation is a valuable tool for pre- venting and managing conflict, as well as achiev- ing goals. process in the Organizing Framework. The way you manage conflict can influence outcomes across all levels of OB. You also learned the FIGURE 10.6 Organizing Framework for Understanding and Applying OB SOURCE: ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. INPUTS PROCESSES OUTCOMES Person Factors • Personality • Experience • Skills and abilities • Conflict-handling styles • Values • Needs • Mindfulness • Ethics • Incivility • Moral character Situation Factors • Relationship quality • Leadership • Organizational climate • Stressors • Incivility • Alternative dispute resolution practices Individual Level • Conflict and negotiation • Emotions • Interpersonal skills • Perceptions • Performance management practices • Trust • Communication Group/Team Level • Group/team dynamics • Conflict and negotiation • Decision making • Performance management • Leadership • Communication • Trust Organizational Level • Human resource policies and practices • Communication • Leading and managing change and stress Individual Level • Task performance • Work attitudes • Citizenship behavior/ counterproductive behavior • Turnover • Career outcomes • Creativity Group/Team Level • Group/team performance • Group satisfaction • Group cohesion and conflict Organizational Level • Accounting/financial perfor- mance • Customer satisfaction • Innovation • Reputation Organizational Behavior: A Practical, Problem-Solving Approach 419Managing Conflict and Negotiations CHAPTER 10 Facebook’s meteoric growth and central role in revolu- tionizing social media has been overshadowed in recent years by its many controversies, such as the company’s role related to influencing the presidential election in 2016, the improper harvesting and use of nearly 90 million user accounts by Cambridge Analyt- ica, and the widespread concerns by users and regula- tors that the company insufficiently protects its more than 2.2 billion users’ data and privacy. These issues are significant, as they can and have cost the company users, advertising revenues, damage to its reputation, along with fines and restriction from regulators. Adding to the troubles, top level executives like Mark Zucker- berg and Sheryl Sandberg’s conduct has been ques- tioned on ethical grounds for how they’ve responded.108 PRECIOUS JEWELS, NOW COSTLY CONFLICT However, the issues that grab fewer headlines but per- haps signal other significant troubles are the depar- tures of key executives of companies Facebook has acquired, notably Instagram and WhatsApp. Facebook bought Instagram in 2012 for $1 billion, when it had only a few employees and about 30 million users. It now has 1 billion users and an estimated value of $100 billion if it were independent. WhatsApp was purchased in 2014 for $19 billion at a time when it had approxi- mately 50 employees and about 450 million users. Just two years later the number was over 1 billion users. These acquisitions have been central to Facebook’s strategy and growth, but the founders of these two companies (Jan Koum and Brian Acton of WhatsApp, and Kevin Systom and Mike Krieger of Instagram) have all left in the period of a few months, signaling conflict and trouble at the social networking icon.109 HARMONIOUS AUTONOMY The founders of both Instagram and WhatsApp stayed in place for several years after their companies were acquired, which is not the norm given many cash out and leave. They however were allowed to run their companies much as they had, maintaining autonomy and the ability to creatively realize their visions for the companies they created. For WhatsApp founders, Koum and Acton, their passion was the privacy of communication. WhatsApp’s encrypted messaging service exploded in parts of the world where messaging services were either expensive or social networks like Facebook had not penetrated. Mr. Koum, in particular, valued secure communication due to his upbringing in the Soviet Union where everyone was monitored all of the time. The founders continued to develop Whats- App’s end-to-end encryption after the Facebook acqui- sition, avoided advertising, and maintained offices separate from Facebook’s campus. In fact, WhatsApp’s offices do not even bear the company’s name; how about that for dedication to privacy? As for Instagram, Systom and Krieger also pre- served considerable autonomy over the app and grew advertising revenues to $6 billion in 2018. The app is growing and is particularly popular with younger peo- ple. Despite the controversies consuming Facebook and Zuckerberg, the founders’ relationship with Zuck- erberg seemed harmonious and was often touted by Zuckerberg and others as a model for how to acquire and work with small tech companies. ZUCKERBERG ASSERTS CONTROL Facebook, fairly or not, is equated with its founder, Mr. Zuckerberg, who maintains control and largely deter- mines the direction and structure of the company he founded. And therein lies the source of many of the conflicts. Zuckerberg envisions integrating Facebook’s apps (Messenger, WhatsApp, and Instagram) which will require the sharing of user data between the products in ways not done previously. Part of this effort has included reorganizing senior management and install- ing Adam Mosseri as VP of product design at Insta- gram, a role previously filled by the founders. But it didn’t stop there. Zuckerberg also inserted Chris Cox, Facebook’s chief product officer, between him and Systom and Krieger, which many internal to Instagram viewed as a move to put a trusted “Facebook first” per- son in place to control the direction and guard against the departure of the founders. CONFLICTS GROW AND FOUNDERS EXIT Instagram’s founders increasingly disagreed with Zuckerberg and other Facebook executives during meetings, and although historically quite cordial, the disagreements became more severe and spilled over PROBLEM-SOLVING APPLICATION CASE With Trouble Comes Conflict, and with Conflict Comes Trouble Organizational Behavior: A Practical, Problem-Solving Approach 420 PART 2 Groups APPLY THE 3-STEP PROBLEM- SOLVING APPROACH TO OB Use the Organizing Framework in Figure 10.6 and the 3-Step Problem-Solving Approach to help identify inputs, processes, and outcomes relative to this case. STEP 1: Define the problem. A. Look first at the Outcomes box of the Organizing Framework to help identify the important problem(s) in this case. Remember that a prob- lem is a gap between a desired and current state. State your problem as a gap and be sure to consider problems at all three levels. If more than one desired outcome is not being accom- plished, decide which one is most important and focus on it for steps 2 and 3. B. Cases have key players, and problems are gen- erally viewed from a particular player’s perspec- tive. You need to determine from whose perspective—employee, manager, team, or the organization—you’re defining the problem. In this case you’re asked to assume the role of CEO Mark Zuckerberg. C. Use details in the case to determine the key problem. Don’t assume, infer, or create problems not included in the case. D. To refine your choice, ask yourself, why is this a problem? Explaining why helps refine and focus your thinking. Focus on topics in the current chapter, because we generally select cases illus- trating concepts specifically located within the current chapter. STEP 2: Identify causes. Using material from this chapter and summarized in the Organizing Framework, identify the causes of the problem you identified in Step 1. Remember, causes tend to appear in either the Inputs or Processes boxes. A. Start by looking at the Organizing Framework (Figure 10.6) and decide which person factors, if any, are most likely causes of the defined problem. For each cause, explain why this is a cause of the problem. Asking why multiple times is more likely to lead you to root causes of the problem. For example, do executive characteristics help explain the problem you defined in Step 1? B. Follow the same process for the situation fac- tors. For each ask yourself, why is this a cause? By asking why multiple times you are likely to arrive at a complete and more accurate list of causes. Again, look to the Organizing Frame- work for this chapter for guidance. Did particular policies or practices play a role? onto internal message boards. As for WhatsApp, Zuck- erberg is determined for the app to start using adver- tising and making money, which requires sharing user data between the apps. Koum had taken issue with how data was used by social media companies, espe- cially by Facebook, and abruptly resigned. As one reporter put it: “Instead of changing his values, Mr. Koum is leaving Facebook.”110 His departure was fur- ther complicated due to his seat on Facebook’s board of directors (he resigned). In the period of only a few months all of the found- ers of these crown jewel acquisitions had left. Although some of the motives were unique to individual execu- tives, they appeared to share a growing dissatisfaction with Zuckerberg and the direction of the company. Power and decision making were shifting away to oth- ers and becoming more centralized. It is likely the departing executives felt their objections would not prevail and resistance would be futile. THE PROBLEM IS BIGGER AND THE CONFLICTS MORE NUMEROUS The problem is not just confined to WhatsApp and Ins- tagram. Justin Rosenstein (creator of the “like” button), Chamath Palihapitiya (head of user growth), and Sandy Parakilas (platform operations manager) have all left. They, too, have taken issue with protection of data and privacy, the use of the platforms to manipulate thought and behavior, as well as the lack of personal account- ability by executives. Their issues reflect a growing concern across the industry about increased growth and connectivity, but at what cost. Zuckerberg and other social media executives are being pressed to justify if not alter their own values, or at least the prac- tices of their companies, related to data protection, usage, and privacy.111 Some view the conflicts and departures of key executives as pushback against Zuckerberg’s mission for Facebook, to “make the world more open and con- nected.” Increasingly, as described in this case, impor- tant players both inside and outside the company are taking issue with the means for reaching this end. Zuckerberg, as the founder and face of the company, is now forced to confront challenges and genuine con- flict on many fronts, and how effectively he does this will determine the direction, path, and outcomes for years to come. Assume you are Mark Zuckerberg, and you can go back in time before the departures of these key execu- tives. Apply the knowledge and tools in this chapter and the 3-Step Problem-Solving Approach to deter- mine how you would deal with the conflicts described above. Organizational Behavior: A Practical, Problem-Solving Approach 421Managing Conflict and Negotiations CHAPTER 10 dissolve it (see Section 1.5). Which recommendation is desirable and feasible? A. Given the causes you identified in Step 2, what are your best recommendations? Use material in the current chapter that best suits the cause. Consider the OB in Action and Applying OB boxes, because these contain insights into what others have done. B. Be sure to consider the Organizing Framework— both person and situation factors—as well as processes at different levels. C. Create an action plan for implementing your rec- ommendations and be sure your recommendations map onto the causes and resolve the problem. C. Now consider the Processes box in the Organiz- ing Framework. Are any processes at the indi- vidual, group/team, or organizational level potential causes of your defined problem? For any process you consider, ask yourself, why is this a cause? Again, do this for several iterations to arrive at the root causes. D. To check the accuracy or appropriateness of the causes, be sure to map them onto the defined problem and confirm the link or cause and effect connection. STEP 3: Recommend solutions. Make your recommendations for solving the problem. Consider whether you want to resolve it, solve it, or LEGAL/ETHICAL CHALLENGE Arbitrate or Litigate? Employees Now Have a Choice If you haven’t actually been involved in arbitration, then you might be surprised to know you have likely agreed to this form of alternative dispute resolution (ADR) many times without knowing it. Most cell phone, cable, Internet, online shopping, and credit card agree- ments have contained arbitration clauses for quite some time. In the fine print of their service agreements are buried the words, “The company may elect to resolve any claim by individual arbitration.” This means you agree to be bound by the decision of a third party, often hired by the company against which you have a complaint. You cannot take matters to court, which also means you cannot band together with coworkers in a class action suit.112 Arbitration agreements are frequently included in employment contracts with little or no room to negoti- ate the terms. The potential benefit of maintaining the confidentiality of the matters and people involved can be negated by the inability to appeal decisions. More- over, the confidentiality element (also governed by nondisclosure agreements—NDAs) has come under fire most recently for shielding the perpetrators of sex- ual harassment and assault, such as those disclosed in the #MeToo movement. Google, along with Adobe and Intuit, made head- lines when they eliminated forced arbitration for all employee disputes. This is seen as a tectonic event. Such agreements typically give the employer an enormous advantage, as they have skill and experi- ence in arbitrating, as well as financial resources, that employees typically lack. For instance, research shows employees on average receive larger settle- ments in court than in arbitration.113 Changes at tech, and other, companies have been motivated by protests over mandatory arbitration pro- tecting executives and their employers from the embarrassment and costs associated with sexual harassment. This is viewed as a victory for employees who can now more effectively pursue claims of dis- crimination, wage theft and overtime issues, or many other employee-employer disputes.114 However, it is important to recall the benefits of arbitration: time, cost, and confidentiality (sometimes names and offenses are best left out of public view). And Google did not eliminate mandatory arbitration for its contract workers who comprise approximately half of its workforce. What Should Be Done? 1. Nothing. Allow companies to include arbitration agreements in employment contracts as they choose. Explain your reasoning. 2. Modify the arbitration agreements to better pro- tect employees. Explain your recommended modifications. 3. Do away with arbitration agreements in employ- ment contracts just as Google and other compa- nies have done. Justify. 4. Create and explain other alternatives. Organizational Behavior: A Practical, Problem-Solving Approach LO 11-1 Compare rational and nonrational models of decision making. LO 11-2 Describe eight decision-making biases. LO 11-3 Explain evidence-based decision making. LO 11-4 Compare the four styles of decision making. LO 11-5 Describe how to assess the ethics of decision making. LO 11-6 Outline the basics of group decision making. LO 11-7 Explain how creativity relates to decision making. LO 11-8 Describe the implications of decision making and creativity for you and managers. After reading this chapter, you should be able to: Throughout this book we encourage you to use the Organizing Framework to solve problems, a skill recruiters say college graduates need.1 The goal of this chapter is to further help you develop your problem-solving skills. The Organizing Framework  in Figure 11.1 summarizes what you will learn in this chapter. Although the chapter focuses on decision making, which is an individual- and group/team-level process, a host of person and situation factors influence it. Figure 11.1 further shows that many other individual, group/team, and organizational level pro- cesses impact how we make decisions. We will touch on many of these in the sections to come. Finally, take note of how the various decision-making processes affect numerous individual, group/team, and organizational level outcomes. Decision Making and Creativity11 Ja n H av lic ek /J oh ny 87 /1 23 RF Organizational Behavior: A Practical, Problem-Solving Approach 423 FIGURE 11.1 Organizing Framework for Understanding and Applying OB INPUTS PROCESSES OUTCOMES Person Factors • Intuition • Judgmental heuristics • Decision-making styles • Ethical values • Personality • Self-efficacy • National culture Situation Factors • Decision situation • Organizational culture • Organizational climate Individual Level • Rational/nonrational decision making • Ethical decision making • Creativity Group/Team Level • Rational/nonrational decision making • Groupthink • Minority dissent • Consensus • Creativity Organizational Level • Evidence-based decision making • Creativity Individual Level • Task performance • Career outcomes • Creativity Group/Team Level • Group/team performance • Group cohesion and conflict Organizational Level • Accounting/financial performance • Legal liability • Innovation • Customer satisfaction ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. Decision making and problem solving affect all aspects of our lives. Consider the success of a basketball team. Here we see a coach meeting with her team to discuss strategies to defeat the opposing team. Making effective decisions during the game can make the difference between winning and losing. Randy Faris/Corbis/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 424 Winning at Work How to Practice Critical Thinking for Decision Making We make decisions every day. Some are minor—bring the umbrella or not? Others are consequential, like your choice of career, and others can be life-changing. This chapter explores types of decisions, useful models and tools for management decision making, and logical biases and other problems that can get in the way of making good decisions. One skill that underlies all good decision making, however, and one you can begin practicing right now, is critical thinking, the application of logic and reasoning to problem solv- ing. Here are some tips: 1. Get all available facts. Decisions made in the absence of facts are often flawed, based on biased thinking or guesswork, or overly reliant on emotional responses to an uncertain situation. Getting reliable factual information from several different sources is an essential first step. 2. Understand your motive. This means being clear about whether you’ve sought objective information or merely valida- tion of what you already believe. If you’re looking for validation, you’re not thinking critically, and you need to ask yourself why. You may be heading for a biased decision.2 3. Reconsider the facts. Look objectively at the facts. If you are basing your decision on some unavoidable as- sumptions, for instance, ask yourself how valid they are in light of objective reality. How often do circum- stances like yours lead to the outcome you’re hoping for? Learning about probability (the measure of an event’s likelihood of occurring) can help you avoid many of the cognitive biases this chapter will discuss.3 4. Expect to be wrong. Realize that no one is right all the time. (Most of us are wrong surprisingly often.) Instead of seeing this as a roadblock, use it to avoid the mis- take of overconfidence. Ask for and listen to others’ opinions, reconsider your own logic, and be open to the possibility that you could change your mind.4 5. Choose your course of action. If you’ve collected facts, looked at them objectively, made sure you’re not just confirming your own opinion, and listened carefully to input from others, you’re ready to make a decision as grounded in critical thinking as possible. Another useful idea that roughly parallels these sugges- tions is the “six thinking hats” strategy popularized by Edward De Bono.5 The six hats are symbols in a step-by-step deci- sion process that asks you to imagine putting on a different- colored hat for each step. The white hat is first and calls for you to focus on the available facts and keep your thinking free of bias, just as white is free of color. Next, the black hat allows you to think negatively and assess which ideas won’t work, followed by the yellow hat, which focuses on the positive (think sunshine) and the potential for opportunity. Like the shoots of a new plant, the next hat is green for creativity and insights from outside-the-box think- ing, while red, suggesting hearts, puts emotion in the picture so you can test your intuition and feelings. The last hat is blue like the sky and signals it’s time to put all ideas together into an action plan that will fly. One advantage of De Bono’s strat- egy is that sequentially imagining the six hats helps keep members of decision-making groups focused on the same step at the same time. And it offers a good blueprint for indi- viduals making decisions, too. What’s Ahead in This Chapter We contrast rational and nonrational decision mak- ing and explain why it’s important to understand both. We also show you eight decision-making biases and the benefits of evidence-based decision making. We explain why companies are leveraging big data and utilizing artificial intelligence to make decisions. Next we discuss general decision-making styles and ethical decision making. We conclude by distinguishing the pros and cons of group decision making, group problem-solving techniques, and the process of creativity. All this information will help you improve your ability to make decisions. Six different colored hats symbolize a popular step-by-step decision process. YolLusZam1802/Shutterstock Organizational Behavior: A Practical, Problem-Solving Approach 425Decision Making and Creativity CHAPTER 11 11.1 RATIONAL AND NONRATIONAL MODELS OF DECISION MAKING Decision making matters deeply in your personal and work life. Let’s consider the impact of decisions made by a few college graduates during the interview process. One job applicant took a nonemergency call on his smartphone 15 minutes into the inter- view. Do you think this decision made a positive impression? Another decided to bring his father into a 45-minute interview: The recruiter was shocked. Paula Welch, a Cigna HR representative, similarly noted how one recent grad asked his father to call and nego- tiate a higher salary after the son received a job offer. Here’s another decision: A college senior brought her cat to the interview in a cage and then proceeded to play with it dur- ing the interview. The end results of these decisions were negative for all the applicants.6 Decision making  entails identifying and choosing from among alternate solu- tions that lead to a desired state of affairs. The above examples illustrate how decisions affect your chances of getting a job after graduation, but successful decision making has much broader applications. Among organizations, for example, Fortune concluded, “Decision making at even the most basic level has slowed materially over the past five to 10 years.”7 Slower decision making leads to increased costs, lower efficiency, and lower customer satisfaction.8 In sum, individuals, teams, and organizations are well served to improve their decision-making skills. Before discussing rational and nonrational models of decision making, we set the context by discussing two ways of thinking that affect the way we make decisions. Two Ways of Thinking In his book Thinking, Fast and Slow, Daniel Kahneman, a professor who received the 2002 Nobel Prize in economics, described two kinds of thinking, which he labeled System 1 and System 2.9 System 1—Intuitive and Largely Unconscious Thought System 1 is our auto- matic, instinctive, and emotional mode of decision making. It is fast because it relies on mental shortcuts that create intuitive solutions to problems as they come up, for example, when we hit the brakes at the sight of another car’s brake lights or pause when we detect anger in someone’s voice. System 2—Analytical and Conscious Thought System 2 is our slow, logical, deliberate mode of decision making. It helps us identify when our intuition is wrong or when our emotions are clouding our judgment. It requires more cognitive effort than System 1 and is used when contemplating a discrete task such as parallel parking or how to best climb a tree. THE BIGGER PICTURE Decision making is a key process within the Organizing Framework for Understanding and Applying OB. The process varies along a continuum of rational to nonrational. Four steps in making rational decisions are (1) identify the problem, (2) generate alternative solutions, (3) evaluate alternatives and select a solution, and (4) implement and evaluate the solution. Examples of nonrational models include (1) satisficing and (2) intuition. Compare rational and nonrational models of decision making. LO 11-1 Organizational Behavior: A Practical, Problem-Solving Approach 426 PART 2 Groups Both Systems Have Value There are pros and cons to both systems of thinking. For example, System 1 think- ing forms first impressions and judgments, which may be automatic but may lead us to jump to conclusions that may or may not be accurate. It can also lead to poor follow- through on plans because it focuses on immediate payoffs, which distract us from considering the long-term implica- tions of our decisions.10 When System 1 runs into difficulties, we can call on System 2 thinking for a more methodical approach to a spe- cific situation or problem. System 2 thinking typically gets involved only when we encounter something unexpected that System 1 thinking can’t answer. In addition, System 2 thinking can be time consuming, especially when we don’t have the cognitive energy or attention required to think through a situation. For example, suppose you were looking to purchase a new phone. Comparing two different smart- phones to determine their features and price points requires attention to detail and may take longer than a quick deci- sion that occurs using System 1 thinking.11 Rational Decision Making: Managers Make Logical and Optimal Decisions The rational model of decision making  explains how managers should make deci- sions. It assumes that managers are completely objective and possess all information for their decisions. In this model, decisions thus demonstrate excellent logic and promote the organization’s best interests. Four generic stages are associated with rational decision making (see Figure 11.2). We discuss each one next. Stage 1: Identify the Problem or Opportunity—Determining the Actual versus the Desirable We defined a problem in Chapter 1 as a difference or gap between an actual and a desired situation. By now you know that problem identification is the first step in solving any type of problem. In addition to making decisions to solve problems, however, managers also have to make decisions about optimizing opportunities. An opportunity  is a situation in which results that exceed goals and expectations are possible. For exam- ple, U.S. medical schools must prepare to graduate more than 12,000 more medical students each year over the next decade. This opportunity, however, will require some tough decisions because the number of funded medical residencies has been frozen by the federal govern- ment since 1997. Residencies are the three to seven years of additional on-the-job training that medical students need before they can practice medicine on their own. Without Congress approving the additional funding for more medical residencies, the Association of American Medical Colleges predicts a shortage of as many as 121,000 doctors by 2030.12 What do you do when you see the rear brake lights like this light up? Do you think about stepping on the brake, or do you automatically hit the brakes? This automatic process is an example of System 1 thinking. Ingram Publishing FIGURE 11.2 The Four Stages in Rational Decision Making Stage 1 Identify the problem or opportunity. Stage 2 Generate alternative solutions. Stage 3 Evaluate alternatives and select a solution. Stage 4 Implement and evaluate the solution chosen. McGraw-Hill Global Education Holdings, LLC Organizational Behavior: A Practical, Problem-Solving Approach 427Decision Making and Creativity CHAPTER 11 Whether you face a problem or an opportunity, the goal is always the same: to make improvements that change conditions from their current state to a more desirable one. This requires you to diagnose the cause of the problem, or the nature of the opportunity. Stage 2: Generate Alternative Solutions—Both the Obvious and the Creative For many people generating solutions is the exciting part of decision making, the step where you get to be creative, think outside the box, and share your ideas about how things should be done. Brainstorming, for instance, is a common technique (discussed later in the chapter) that both individuals and groups use to generate potential solutions. A research study of 400 strategic decisions revealed that managers struggled during brainstorming because of three key decision-making blunders:13 1. Rushing to judgment. Managers simply make decisions too quickly without consider- ing all relevant information. 2. Selecting readily available ideas or solutions. Managers take the easy solution without rigorously considering alternatives. This can happen when emotions about the prob- lem are running high. 3. Making poor allocation of resources to study alternate solutions. Managers don’t invest the resources to properly study the problem and the alternate courses of action. Decision makers thus are encouraged to slow down and use System 2 thinking (ana- lytical and conscious) when making decisions. This should lead them to identify a broader set of alternatives and potential solutions.14 Stage 3: Evaluate Alternatives and Select a Solution—Ethics, Feasibility, and Effectiveness In the third stage, evaluate your alternatives on several criteria. Costs and quality are important, but you should also consider the following questions: (1) Is it ethical? (If not, don’t consider it.) (2) Is it feasible? (If time is an issue, costs are high, resources are limited, new technology is needed, or customers are resistant, for instance, then the alternative is not feasible.) (3) Will it remove the causes and solve the problem? Stage 4: Implement and Evaluate the Solution Chosen After the solution has been implemented, stakeholders need to evaluate how effectively it solves the problem. If effective, it should eliminate or significantly reduce the difference between the problem state and the desired outcome. If not, either the problem was incorrectly identified or the solution was inappropriately conceived or executed. Management can return to the first step, problem identification. If the problem was correctly identified, management should consider implementing one of the untried solutions. This process can continue until all feasible solutions have been tried or the problem has changed. System 2 thinking is needed to effectively work through this stage. What Are the Pros and Cons of the Rational Model? The rational model is pre- scriptive. It outlines a logical process managers should use, assuming they are optimizing when making decisions. Optimizing  means solving problems by producing the best possible solution based on a set of highly desirable conditions—having complete information, leaving emotions out of the decision-making process, honestly and accurately evaluating all alternatives, having abundant and accessible time and resources, and having people willing to implement and support decisions. Practical experience, of course, tells us that these conditions are all rarely met, and assumptions to the contrary are unrealistic. Social scientist Herbert Simon earned the 1978 Nobel Prize for his work on decision mak- ing. He put it this way: “The assumptions of perfect rationality are contrary to fact. It is not a question of approximation; they do not even remotely describe the processes that human beings use for making decisions in complex situations.”15 Organizational Behavior: A Practical, Problem-Solving Approach 428 PART 2 Groups That said, there are three benefits of trying to follow a rational process as closely as is realistically possible: • Quality. The quality of decisions may be enhanced, in the sense that they follow more logically from all available knowledge and expertise. • Transparency. Rationality makes the reasoning behind a decision transparent and available to scrutiny. • Responsibility. The rational model discourages decision makers from acting on sus- pect considerations (such as personal advancement or avoidance of bureaucratic embarrassment) and therefore encourages more responsible decisions.16 Nonrational Models of Decision Making: Decision Making Does Not Follow an Orderly Process Nonrational models of decision making  explain how managers actually make deci- sions. These models typically build on assumptions that decision making is uncertain, that decision makers do not possess complete information, and that managers struggle to make optimal decisions. The choice to text while driving is an example of nonrational decision making. According to recent statistics, 9 percent of all U.S. fatal crashes involve texting while driving, and texting while driving increases by 400 percent a driver’s time spent with their eyes off the road. At 55 mph, that’s enough time to travel the length of a football field.17 Psychologist Dan Ariely noted, “This behavior embodies the way we’re capable of doing things that can kill us without thinking about the long-term consequences.”18 Two nonra- tional models that might explain this behavior are Herbert Simon’s normative model and the intuition model. Do you text and drive? Many of us do even in light of the fact that about 25 percent of all automobile accidents involve the use of a cell phone. Sadly, the American Automobile Association estimates that 11 teens die every day from texting and driving. What can you do to reduce the extent to which you text and drive? kali9/Getty Images Simon’s Normative Model: “Satisfactory Is Good Enough” Herbert Simon proposed the normative model to describe the process that managers actually use when making decisions. This process is guided by a decision maker’s bounded rationality. Organizational Behavior: A Practical, Problem-Solving Approach 429Decision Making and Creativity CHAPTER 11 Bounded rationality  represents the notion that decision makers are “bounded” or restricted by a variety of constraints when making decisions. Lack of information is a prime example of a decision-making constraint. Would you invest $500 million in the face of bounded rationality? General Motors did. GM invested more than $500 million in the car-hailing service Lyft. GM management concluded that Lyft could help the automaker prepare for a time when people will want self-driving cars. What will the market be for such cars? When will that market become viable? Will the government block this market due to safety concerns? As of today, no one really knows, but both companies see the world changing quickly and wanted to prepare for the future.19 In addition to lack of information, bounded rationality is caused by any personal characteristics and internal and external resources that reduce rational decision making. Personal characteristics include personality and the limited capacity of the human mind. Consider gender: Males tend to make riskier decisions than females.20 Examples of inter- nal resources are the organization’s human and social capital, financial resources, technol- ogy, plant and equipment, internal processes and systems, and the time available. External resources include factors the organization cannot directly control, such as employment levels in the community, capital availability, and government policies.21 Ultimately, bounded rationality leads managers to obtain manageable rather than optimal amounts of information as described in the OB in Action feature. This practice makes it dif- ficult for managers to identify all possible alternate solutions. In the long run, the constraints of bounded rationality cause decision makers to fail to evaluate all potential alternatives, thereby causing them to satisfice. How do you make a decision that will affect the future when you don’t know what will happen a week or a year from now? Making choices in the face of incom- plete information—that is, under the constraints of bounded rationality—is a challenging situation we face all the time, in our personal and professional lives. For example, Charles Darwin, whose scientific mind shaped the theory of evolution, was so con- founded by the decision whether to marry and have children or remain single that he made a list of pros and cons for each option. (He opted to marry.)22 If you are looking for a decision-making strategy that’s more reliable than subjectively comparing pros and cons, consider the intensive collaborative and interdisciplinary technique called “design char- rette,” in which decision makers gather as a group and divide their problem into multiple parts, each of which is taken over by a small but diverse group that works to find a solution. The groups then reas- semble, each presents its work to the others, and a process of giving feedback, making revisions, and regrouping begins that lasts until a decision has been made.23 The word charrette is French for cart and refers to the wheeled container that was used to gather students’ assignments in the classrooms of 19th-century France.24 Here are some recent examples of the charrette strategy in use. • Consultants from MIG Inc., charged with plan- ning a major update to the passenger terminal at California’s Hollywood Burbank Airport, recently held the first of several planned meet- ings with local residents and other stakehold- ers to discuss what they would like to see in the new design. About 80 people attended and split into small groups to offer their ideas, which will be refined in more charrette work- shops to follow.25 • Design students at the University of Kentucky, University of Cincinnati, and Western Kentucky University provided input to a building industry design charrette intended to develop environ- mentally sustainable and extreme weather- resistant home-construction materials.26 Improving an Airport Terminal under Bounded Rationality OB in Action Organizational Behavior: A Practical, Problem-Solving Approach 430 PART 2 Groups Satisficing  consists of choosing a solution that meets some minimum qualifica- tions and thus is “good enough.” Satisficing resolves problems by producing solutions that are satisfactory, as opposed to optimal. Finding a radio station to listen to in your car is a good example of satisficing. You cannot optimize because it is impossible to listen to all stations at the same time. You thus stop searching for a station when you find one play- ing a song you like or do not mind hearing. The Intuition Model: “It Just Feels Right” Intuition  consists of judgments, insights, or decisions that “come to mind on their own, without explicit awareness of the evoking cues and of course without explicit evaluation of the validity of these cues.”29 We all have the ability to use intuition. EXAMPLE Ignoring recommendations from advisers, Ray Kroc purchased the McDonald’s brand from the McDonald brothers: “I’m not a gambler and I didn’t have that kind of money, but my funny bone instinct kept urging me on.”30 Zachary Bodish bought a poster for a 1958 exhibition of ceramics by Pablo Picasso for $14.44 at an Ohio thrift store. He had a hunch it might be worth much more. Turns out the piece was actually signed by Picasso, and Bodish sold it for $7,000.”31 The use of intuition does not always lead to blockbuster decisions such as those by Ray Kroc and Zachary Bodish, however. To enhance your understanding of the role of intuition in decision making, this section reviews a model of intuition and discusses the pros and cons of using intuition to make decisions. A Model of Intuition Figure 11.3 presents a model of intuition. Note that it shows two forms of intuition: 1. A holistic hunch  is a judgment based on the subconscious integration of infor- mation stored in memory. People using holistic intuition may not be able to explain why they want to make a certain decision except that the choice “feels right.” This reflects System 1 thinking (intuitive and largely unconscious). 2. Automated experience  represents a choice based on a familiar situation and a partially subconscious application of learned information related to it. For exam- ple, when you have years of experience driving a car, you react to a variety of situa- tions without conscious analysis. Apple co-founder, the late Steve Jobs, arguably one of the most important entrepreneurs in the last 40 years, attributed his success to intuition, saying that “intuition is a very powerful thing, more powerful than intellect, in my opinion. That had a big impact on my work.”32 • The Board of Selectmen in Rye, NH, held a design charrette including themselves, town residents, and consultants from a local non- profit group to discuss ways to improve the town center and bring the community together by attracting both young families and older residents. The meeting was inspired by resi- dents, who suggested the charrette idea to the board.27 • Drexel University’s departments of design and architecture have hosted charrettes for several years. Most recently, an interdisci- plinary design charrette was organized to discuss transforming the urban landscape of Philadelphia by closing selected single streets and redesigning them to increase, rather than limit, public access to the business and facili- ties now located there. Students from all majors were invited to participate in an effort aimed at “reconceiving the street as a truly public space.”28 YOUR THOUGHTS? 1. How do you think design charrettes help deci- sion makers working under bounded rationality? 2. What other applications of design charrettes can you think of? What would make the strategy most successful in those situations? Organizational Behavior: A Practical, Problem-Solving Approach 431Decision Making and Creativity CHAPTER 11 In Figure 11.3, you can see that intuition is represented by the two distinct processes we just described. One is automatic, involuntary, and mostly effortless. The second is quite the opposite in that it is controlled, voluntary, and effortful. For example, when you are trying to answer one of the Your Thoughts? questions at the end of the OB in Action boxes, an answer may pop into your mind based on your recollection of what you’ve read (an automatic process). But upon further reflection (a controlled process), you may decide your initial thought was wrong and that you need to go back and reread some material to arrive at another answer. This in turn may cause novel ideas to come to mind, and the two processes continue. These intuitive processes are influenced by two sources: expertise and feelings (see Figure 11.3). Expertise  is an individual’s combined explicit knowledge  or informa- tion that can easily be put into words, and tacit knowledge  or information we gain through experience that is difficult to express and formalize. EXAMPLE Tim Cook uses a combination of explicit and tacit knowledge when making business decisions as Apple’s CEO. When Steve Jobs was still running the company, Cook was instrumental in setting up Apple’s plan of using contract manufacturers to make products faster and in larger quantities than Apple’s own factories while keeping costs relatively low. This strategy also meant that Apple’s competitors had to fight for the small amount of factory capacity left to build their own products, which gave Apple a serious lead in getting products to market (and to waiting consumers) faster than the rest. As Apple crossed the trillion- dollar valuation mark recently, Cook continues to be a driving force in technology as well as a champion for data privacy, human rights, and the ethical use of artifi- cial intelligence.33 • Pros and Cons of Using Intuition. There are two benefits of using intuition to make decisions. (1) It can speed up the decision-making process, which is valuable when you are under time constraints.34 (2) It is useful when resources are limited. On the FIGURE 11.3 A Model of Intuition • Tacit and explicit knowledge Expertise • Automatic, involuntary, and e�ortless • Controlled, voluntary, and e�ortful Intuitive Processes Feelings Holistic Hunch Foundations Processes Forms Automated Experience SOURCES: Kahneman, Daniel, and Gary Klein. “Conditions for Intuitive Expertise: A Failure to Disagree.” American Psychologist 64, no. 6 (September 2009): 515–26. https://DOI: 10.1037/a0016755; Sadler-Smith, Eugene, and Erella Shefy. “The Intuitive Executive: Understanding and Applying ‘Gut Feel’ in Decision-Making.” Academy of Management Executive 18, no. 4 (2004): 76–91; and Miller, C. Chet, and R. Duane Ireland. “Intuition in Strategic Decision Making: Friend or Foe in the Fast-Paced 21st Century?” Academy of Management 19, no. 1 (February 2005). https://doi.org/10.5465/ame.2005.15841948. Organizational Behavior: A Practical, Problem-Solving Approach 432 PART 2 Groups downside, however, intuition is subject to the same types of biases associated with rational decision making, biases we discuss in the next section. In addition, the deci- sion maker may have difficulty convincing others that the intuitive decision makes sense, so a good idea may be ignored. • What Is the Bottom Line on Intuition? We believe intuition and rationality are comple- mentary and that managers should attempt to use both when making decisions.35 We thus encourage you to use intuition when making decisions. You can develop your intuitive awareness by using the recommendations in the Applying OB box. • Improving Your Intuitive Awareness. Do you think being intuitive is a good thing? Would you like to become more intuitive? If yes, you will find Self- Assessment 11.1 valuable. Applying OB rate? If your intuition was wrong, assess why and try to use this knowledge in the future.  • Try visualizing solutions. This will help engage System 1 thinking to activate your intuition. And relax—worry and anxiety will hinder it. • Challenge your intuition. Rather than automatically accepting your intuitive thoughts, challenge them. Test your intuition by thinking of counterarguments. Then challenge those counterarguments.36 • Trust your intuitive judgments. The 80-20 rule says if you have 80 percent of the relevant information, your intuition can fill in the remaining 20 percent. • Seek feedback. Confirm your intuitive judgments by asking trusted others for feedback. • Test your intuitive success rate. Think back over the last year and assess how many times you relied on your intuition. What was your success Tips for Improving Your Intuition Assessing Your Intuition Please be prepared to answer these questions if your instructor has assigned Self- Assessment 11.1 in Connect. 1. What is your assessed level of intuitiveness? Do you agree with this assessment? 2. What are the two highest-ranked items driving your intuition? When do you tend to use these characteristics? 3. What are the two lowest-ranked items that detract from your intuition? When do they get in the way of your making intuitive decisions? SELF-ASSESSMENT 11.1 Organizational Behavior: A Practical, Problem-Solving Approach 433Decision Making and Creativity CHAPTER 11 THE BIGGER PICTURE All of us use heuristics when making decisions. By better understanding the nature of these various rules of thumb, you can improve your ability to make more rational decisions. Heuristics fall into eight categories: availability bias, representativeness bias, confirmation bias, anchoring bias, overconfidence bias, hindsight bias, framing bias, and escalation of commitment bias. 11.2 DECISION-MAKING BIASES: RULES OF THUMB OR “HEURISTICS” Ever had a hard time explaining why you made a particular decision? That’s normal. All of us use shortcuts or “rules of thumb” when making decisions. Academics call these shortcuts judgmental heuristics, pronounced “hyur-ris-tiks.” Judgmental heuristics  are cognitive shortcuts or biases that are used to simplify the process of making decisions.37 There are both pros and cons to the use of heuristics.38 Because these shortcuts derive from knowledge gained from past experience, they can help managers make decisions. At the same time, however, they can lead to bad decisions, particularly by people facing time constraints, such as physicians and other health care professionals. For example, diagnostic errors affect more than 12 million Americans each year. According to a recent study of malpractice claims, more than 53 percent of the claims were related to inaccurate diagnoses and treatment. Some researchers estimate that more than $100 bil- lion may be wasted annually in the U.S. as a result of inaccurate diagnoses.39 We suspect heuristics are partly to blame for these outcomes because physicians and other health care professionals don’t have the time to consider all of a patient’s symptoms when making diagnoses.40 Here are eight biases that commonly affect decision making: 1. Confirmation bias 2. Overconfidence bias 3. Availability bias 4. Representativeness bias 5. Anchoring bias 6. Hindsight bias 7. Framing bias 8. Escalation of commitment bias Knowledge about these biases or heuristics can help you to avoid using them in the wrong situation or being blinded by not knowing you are in fact using them. 1. Confirmation bias. Confirmation bias  pertains to how we selectively gather infor- mation and has two components. The decision maker (1) subconsciously decides something even before investigating why it is the right decision—for example, making a snap decision to purchase a particular smartphone—and (2) seeks information that supports or confirms the decision while discounting information that does not.41 This bias leads us to collect information that supports our beliefs or views. 2. Overconfidence bias. Overconfidence bias  results in overestimating our skills relative to those of others, such as our driving ability, and overestimating the Describe eight decision-making biases. LO 11-2 Organizational Behavior: A Practical, Problem-Solving Approach accuracy of our predictions. This bias grows in strength when people are asked moderate to extremely difficult questions rather than easy ones. (See the Problem- Solving Application on the California wildfire.) Recent research suggests that indi- viduals who believe they are “better-than-average” and in better social standing than others can fall prey to this bias.42 Our advice: Don’t assume that overconfident and assertive people have the best recommendations. Overconfidence Bias Partly to Blame for California Wildfire Biases on the part of PG&E’s management team contributed to the disastrous Camp Fire in California that killed 85 peo- ple, left hundreds homeless, and destroyed the entire town of Paradise. Justin Sullivan/Getty Images Problem-Solving Application 434 PART 2 Groups In late November 2018, a wildfire took hold in a dangerously dry area of California’s Sierra Nevada foothills. Possibly sparked by the malfunction of an electrical power line that initially affected a single customer, it soon burst out of control. Later known as the Camp Fire, the blaze became the deadliest and most destructive in California’s history. Before being contained two weeks later, it had roared through 154,000 acres of land and destroyed the entire town of Paradise. At least 85 people were killed, and hundreds left homeless; nearly 16,000 buildings were burned.43 The malfunctioning tower, left in place 25 years longer than intended, belonged to Pacific Gas & Electric (PG&E), a utility company with a history of safety problems. According to the New York Times, “Five of the 10 most destructive fires in California since 2015 have been linked to PG&E’s electrical network. Regulators have found that in many fires, PG&E violated state law or could have done more to make its equipment safer.” The company’s interim CEO admitted errors and promised change, but Governor Gavin Newsom told an interviewer that the company, which recently filed for bank- ruptcy under the burden of responsibility for tens of billions of dollars of damage from the fire, could not be trusted.44 State investigators probing earlier disasters that implicated PG&E, including many hundreds of fires, heard from employees that the company rou- tinely looked the other way when they complained about outdated equipment and flawed reports. Finding the company had spent millions of dollars less on operations and maintenance than autho- rized, California’s Public Utilities Commission con- cluded it was prioritizing the bottom line over safety. PG&E was also accused of undertaking repairs and improvements only after a fire or explosion had occurred, instead of conducting needed maintenance on a timely basis. “Some people believe that you run equipment to failure,” said one former state regulator. “They believe ‘run to failure’ to save money. This [the Camp Fire] is the danger of run to failure.” The company had earlier announced some steps to incentivize safety but they were short-lived, and at the time of the Camp Fire it was in court, pushing back against legal principles that would hold the utility liable for damage caused by its equipment even when it acted properly.45 PG&E, which has already come through one bankruptcy proceeding, was also fighting to expand the protection of a new law allowing utilities to pay for the costs of fires by raising fees to customers. The company and other utilities claim that their rates will increase anyway because banks will be less willing to lend them money, and that climate change and increased development of remote areas have made fires more likely and harder to Organizational Behavior: A Practical, Problem-Solving Approach 435Decision Making and Creativity CHAPTER 11 fight. Meanwhile the company’s stock dropped 60 percent, its credit rating was downgraded, and it may face criminal charges relating to the fire if it is found to have behaved in a “reckless” manner. It is now seeking new directors and advice on prevent- ing future disasters.46 Apply the 3-Step Problem-Solving Approach Step 1: Define the problem in this example. Step 2: Identify the causes. How did overconfidence and any other biases contribute to this disaster? Step 3: Make your recommendations about what PG&E should do differently in the future to avoid such disasters. 3. Availability bias. The availability heuristic  is a decision maker’s tendency to base decisions on information readily available in memory. Because the information is recent, we overestimate its importance. The problem, of course, is that recent informa- tion is not necessarily the best or most accurate. The availability bias can be fueled by the news media, which emphasize negative or unusual events like school shootings and plane crashes and often cause us to overestimate their frequency.47 4. Representativeness bias. We use the representativeness heuristic when we estimate the probability of an event’s occurrence based on our impressions about similar occurrences. Representativeness bias  leads us to look for information that sup- ports previously formed stereotypes.48 A manager, for example, may hire a gradu- ate from a particular university because the past three people hired from this university turned out to be good performers. In this case, the “school attended” criterion is being used to facilitate complex information processing associated with employment inter- views. However, this shortcut can result in a biased decision.49 5. Anchoring bias. Is the population of Mexico greater than 40 million? What’s your best guess about the population of Canada? If your answer to the second question was influ- enced by the number 40 million suggested by the first question, you were affected by the anchoring bias. Anchoring bias occurs when decision makers are influenced by the first information they receive about a decision, even if it is irrelevant. Initial information, impressions, data, feedback, or ste- reotypes anchor our subsequent judgments and decisions.50 6. Hindsight bias. Imagine you are taking an OB course that meets Tuesdays and Thursdays, and your professor gives unannounced quizzes each week. It’s the Monday before a class, and you are deciding whether to study for a potential quiz or watch Monday Night Football. Two of your class- mates have decided to watch the game rather than study because they don’t think there will be a quiz the next day. The next morn- ing you walk into class and the professor says, “Take out a sheet Some people are afraid of flying because they overestimate the chances of being in a plane crash. Plane crashes are actually low-probability events. In 2017, there were more than 35 million commercial jet takeoffs with only 1 fatal accident. AF archive/Alamy Stock Photo Organizational Behavior: A Practical, Problem-Solving Approach 436 PART 2 Groups of paper for the quiz.” You turn to your friends and say, “I knew we were going to have a quiz; why did I listen to you?” Hindsight bias occurs when knowledge of an outcome influences our belief about the probability that we could have predicted the outcome earlier. The danger of this bias is that, in retrospect, we get overconfident about our foresight, which leads to bad decisions.51 For example, an investor may look at the sudden death of an important CEO as something that should have been expected because the individual was experiencing severe health issues recently.52 7. Framing bias. Framing bias relates to the manner in which a question is posed or framed. It leads us to change the way we interpret alternatives. For example, customers have been found to prefer meat that is framed as “85 percent lean” instead of “15 percent fat,” although, of course, the two mean the same thing. In general, people view choices more favorably when they are framed in terms of gains rather than losses.53 You would be more likely to invest in a product that had a 60 percent chance of success rather than a 40 percent chance of failure. Try framing your deci- sion questions in alternate ways to avoid this bias. 6. Escalation of commitment bias. Escalation of commitment bias  is the tendency to hold to an ineffective course of action even when it is unlikely the bad situa- tion can be reversed. Would you invest more money in an old or broken car? The Drug Enforcement Administration and the Pentagon continued to spend on a spy plane for use in Afghanistan that was supposed to be completed in 2012 at a cost of $22 million, even though the project had missed every projected delivery date. By 2016, it had not yet left the ground, and total payouts had reached more than $86 million.54 Researchers recommend the following actions to reduce the escalation of commitment: • Set minimum targets for performance, and have decision makers compare their performance against these targets. • Regularly rotate managers in key positions throughout a project. • Encourage decision makers to become less ego-involved with a project. • Make decision makers aware of the costs of persistence.55 New England Patriots quarterback Tom Brady being interviewed after his vic- tory in Super Bowl 53 at Mercedes-Benz Stadium in Atlanta on February 3, 2019. Many of us fall prey to the hindsight bias when we evaluate the suc- cess or failure of plays called by quarterbacks. Jamie Squire/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 437Decision Making and Creativity CHAPTER 11 THE BIGGER PICTURE You can improve the quality of your decisions by looking for the best evidence and the best available data to make, inform, or support them. This section of the chapter will help you understand the role of evidence in decision making and the move toward big data and artificial intelligence. 11.3 EVIDENCE-BASED DECISION MAKING Evidence-based decision making  is the process of conscientiously using the best available data and evidence when making managerial decisions. It holds the promise of helping avoid the decision-making biases discussed earlier and improving performance while reducing costs. Proponents also believe evidence-based decision making can help in the use of “big data” to market and sell products and services. Consider the applications to farming and cruising. EXAMPLE The Riensche family has been farming 12,000 acres in Iowa for six gen- erations. Recently they signed up with Bayer’s Climate Corp. for a data analysis ser- vice, which among other things, helped reduce the seed they use by 6 percent and fertilizer by 11 percent—all while growing the best crops they’ve ever planted. Ben Riensche, the most recent family member to manage the farm, still has his grandfa- ther’s spiral notebooks that meticulously list crop and egg yields. Before data analysis, Explain evidence- based decision making. LO 11-3 More and more farmers are signing up for data analysis services, which can provide them with important data that can help them manage their crops more efficiently and make decisions based on solid evidence. Nolanberg11/Shutterstock Organizational Behavior: A Practical, Problem-Solving Approach 438 PART 2 Groups Riensche says, “there was no secret sauce other than just keeping notes and making field observations. Now we have all these digital tools.” Climate Corp. and its com- petitors use information supplied by farmers who subscribe to their services and feed it into software programs that predict combinations of seeds, fertilizer, and sprays to maximize yield and revenues.56 EXAMPLE Carnival Cruise Lines has introduced a tracking device on its Princess cruise ships to help the company collect and analyze passenger data and prefer- ences. The Medallion is a wearable device the size of a poker chip worn on the wrist or around the neck that syncs to each passenger’s information stored in the cloud. Not only does this technology allow for quicker check-ins and boarding, it also helps the company track each guest’s interaction with various digital and gam- ing experiences created to enhance their sea-going adventures. In addition, the data-tracking system includes avatars called Tagalongs that accompany each pas- senger around the ship, appearing on nearby digital screens and on the more than 3,000 digital devices that cruisers bring along on their trips. The company expects digital tracking and data collection to enhance passengers’ cruise experiences while helping the company zero in on making decisions to entice passengers to book for future vacations.57 Using Evidence to Make Decisions Managers use evidence or data in three different ways: to make a decision, to inform a decision, and to support a decision. Here is what a team of researchers had to say about how we use data to make decisions. “Evidence is used to make a decision whenever the decision follows directly from the evidence.” For example, if you wanted to purchase a particular used car such as a Toyota Carnival Corporation’s CEO and President, Arnold Donald, holds a Medallion tracking device. Rick Wilking/Newscom Organizational Behavior: A Practical, Problem-Solving Approach 439Decision Making and Creativity CHAPTER 11 Prius based on price and color, you would obtain data from the Internet and classified ads and then choose the seller offering the lowest-priced red Prius. “Evidence is used to inform a decision whenever the decision process combines hard, objective facts with qualitative inputs, such as intuition or bargaining with stakeholders.” For instance, when firms are hiring new college graduates, objective data about their past experience, education, and participation in student organizations is relevant input to the hiring decision. Nonetheless, subjective impressions garnered from interviews and references are typically combined with these objective data to make a final decision. These two uses of evidence are clearly positive and should be encouraged. The same cannot be said about using evidence to support a decision. “Evidence is used to support a decision whenever the evidence is gathered or modi- fied for the sole purpose of lending legitimacy to a decision that has already been made.”58 This application of evidence has both positive and negative effects. On the positive side, evidence collected after the fact can be used to convince an external audi- ence that the organization is following a sound course of action in a complex and ambiguous decision context. This can lead to confidence and goodwill about how a company is responding to environmental events. On the negative side, the practice can stifle employee involvement and input because people will come to believe that manage- ment is going to ignore evidence and just do what it wants. In summary, because this practice has both pros and cons, management needs to carefully consider when (if ever) it might be appropriate to ignore disconfirming evidence and push its own agenda or decisions. Big Data: The Next Frontier in Evidence-Based Decision Making Researchers suggest that data creation has doubled in size every two years over the past decade, and by 2025 the digital universe will grow to more than 163 zettabytes (ZB) or one trillion gigabytes. This equates to ten times the 16 ZBs of data generated in 2016.59 The term big data  reflects the vast quantity of data available for decision making. It also encompasses the collection, sorting, and analysis of that information, and the techniques to do so.60 The analysis of big data has already revolutionized all aspects of our lives, and companies are scrambling to hire qualified employees for the job. According to the U.S. Bureau of Labor Statistics, the demand for people with data analytic skills will increase by 27 percent between 2016 and 2026.61 Guess who is respond- ing to this need? Universities. More universities are offering majors in data analytics to fill the more than 2.7 million data and analytics positions that will be available in the U.S. workforce by 2020.62 These degrees will train people to use quantitative and statistical tools to analyze and interpret big data. Do you think you are suited for this career? Managers and companies that effectively utilize big data, such as organizations in the health care industry (see the OB in Action box), are expected to gain competitive advan- tage. Big data creates value in the following ways: • It can make information more transparent and usable. • It allows organizations to measure and collect all types of performance information, enabling them to implement initiatives to enhance productivity. • It enhances decision making at all levels of the organization. • It can be used to develop new products or services.63 One problem with big data is that private or sensitive information is more easily obtained, which means it can be leaked to others. In a recent survey of senior managers, the respondents ranked cybersecurity breaches as the single greatest data threat their companies face.64 Organizational Behavior: A Practical, Problem-Solving Approach 440 PART 2 Groups Big Data Helps Advance the Health Care Industry OB in Action The health care industry continues to be revolutionized by the use of big data to assist doctors and other professionals in improving patient care and outcomes. Ariel Skelley/Blend Images LLC Health care today is being revolutionized by the application of big data to many medical challenges, especially the uncovering of hidden patterns and correlations that can lead to better diagnosis and treatment of new and existing diseases. It was recently estimated that investments in big data by the health care and pharmaceutical industries would total $4.7 billion for 2018 and would grow 12 percent a year over the next several years, reaching more than $7 billion by 2021. Health care providers around the world already report reductions in cost, patient wait times, and emergency room visits, with improved patient outcomes and revenues.65 Big data thus has the potential not only to trans- form the way health care providers operate as busi- nesses, allowing them to become more efficient and reduce costs and errors. It can also speed and improve the way they treat and care for their patients.66 Here are just a few examples:67 • A company called Ginger.io gathers smart- phone data from users with mental illness, providing a mobile platform that allows experi- enced health care professionals to deliver better and more personalized care to those patients. • PeraHealth uses proprietary data sets and a graphic tool called the Rothman Index, which combines vital signs, lab results, and other live patient data, to help identify patients who might be at risk for certain complications before they occur, and to suggest which patients might need intensive-care treatment. • RDMD, a health care start-up, uses artificial intelligence tools to sift big data from medical records of cases of rare diseases. It is then able to market the data to pharmaceutical companies to help advance the search for treatments and cures. • Seattle Children’s Hospital has adopted a sys- tem to mine big data about patients to almost instantly find reliable diagnoses and custom- ized treatments that used to require days or even weeks of work poring over thousands of bits of information. YOUR THOUGHTS? 1. Can you think of any other applications for big data in health care decision making? What kinds of companies or organizations might be inter- ested in such tools? 2. What drawbacks, if any, might arise from the col- lection and use of big data in medical settings? 3. Do you foresee any privacy concerns in medical applications of big data? How should the health care industry safeguard patients’ individual privacy? Artificial Intelligence: Teaching Machines to Make Decisions New technologies are changing our world. Consider that Alphabet’s Waymo division recently launched the United States’ first commercial self-driving taxi service and China’s Xinhau News is using the first artificial intelligence–driven news anchor.68 Organizational Behavior: A Practical, Problem-Solving Approach 441Decision Making and Creativity CHAPTER 11 Artificial intelligence (AI) is a form of computing that allows machines to perform cognitive functions, such as acting or react- ing to inputs, similar to the way humans do.69 There are three key ways that AI can help managers enhance business operations: automating business processes, gaining insight through data analysis, and engaging with customers and employees.70 Back-office administrative tasks and other financial activities lend themselves to automation and are considered the “least smart” type of AI activity. For example, updating customer files with address changes; replacing lost or stolen credit cards; and managing customer communications are all tasks that can be handled by automated sys- tems fueled by AI. AI can also be used to gain business insights by creating algorithms that can be used to detect patterns in vast amounts of data and actually interpret their meaning. This type of task is a more moderate level of AI activity utilized by many organizations. For example, by using these algorithms, machine learning can predict what product or service a spe- cific type of customer is likely to buy; detect financial or insurance claim fraud in real time; automate personalized targeting of digital ads on websites; and analyze warranty data to identify safety or quality problems in manufactured products. Another way managers and organizations can use AI in business operations is through customer and employee engagement. This application may include chatbots, a form of artificial intelligence that simulates conversations with humans. These AI tools can also offer 24/7 customer service to provide answers to basic, technical questions—in the customer’s natural language; product and service recommendation systems for retailers that increase shopper person- alization, engagement, and sales; and company internal websites for answering employee questions about technology, benefits, HR poli- cies, and even ethics. For example, LEADx developed a coaching bot called “Coach Amanda” that provides tips, guidance, videos, and texts that managers can consult for advice in real time. Ken Ryzner told the Wall Street Journal that Coach Amanda has helped him run richer brainstorming sessions with colleagues by suggest- ing he ask more questions.71 With increasing computing power and the ability to harness vast amounts of data, managers need to decide how best to utilize artificial intelligence as part of their business strategies.72 Companies that utilize AI effectively recognize machine learning alone is not the key to gaining competitive advantage. Research suggests companies that decide to automate certain activities as a way to eliminate jobs may be losing their competitive edge.73 In contrast, companies that automate processes and shift employees to more value- added job tasks may see significant returns on their AI and human collaboration efforts in terms of increasing revenues, retaining employees, and sparking innovation.74 The rise of AI and machine learning is not without challenges, however. Sometimes humans pose situations in which machine learning must choose between two actions with negative or unpleasant consequences and ask what the device should do.75 For example, in a recent study, researchers asked participants about several real-world events that involved “poor decisions” on the part of AI software that could be attributed to human biases. Can AI be racist, sexist, or possibly spread hate? Or, were the algorithms created by humans who have inherent biases when it comes to such “moral violations”? This study and others suggest the relationship between AI and humans is a complex one that needs continuing study.76 Coach Amanda, LEADx’s AI tool and coaching bot, provides tips, guidance, videos, and texts that managers can consult for advice in real time. Courtesy of LEADx Organizational Behavior: A Practical, Problem-Solving Approach 442 PART 2 Groups 11.4 FOUR DECISION-MAKING STYLES We make countless decisions on a daily basis—what to wear, what to eat, what route to take driving to school, whether to confront a negative colleague. These decisions are guided by our decision-making style. A decision-making style  is the way an individual perceives and comprehends stimuli and the general manner in which he or she chooses to respond to such information.77 A team of researchers developed a model of decision- making styles based on the idea that styles vary along two dimensions: value orientation and tolerance for ambiguity.78 Value Orientation and Tolerance for Ambiguity Value orientation is the extent to which an individual focuses on either task and technical concerns or people and social concerns when making decisions. Some people, for instance, are very task-focused at work and do not pay much attention to people issues, whereas oth- ers are just the opposite. The second dimension pertains to a person’s tolerance for ambiguity. This character- istic indicates the extent to which a person needs structure or control in his or her life. Some people desire a lot of structure. They have a low tolerance for ambiguity and find ambiguous situations stressful and psychologically uncomfortable. Others do not have a high need for structure and can thrive in uncertain situations; their tolerance for ambigu- ity is high. Imagine the ambiguity faced by Andrés Sepúlveda as he worked to rig politi- cal campaigns across Latin America. He and his team of hackers “stole campaign strategies, manipulated social media to create false waves of enthusiasm and derision, and installed spyware in oppositions offices, all to help Peña Nieto get elected president of Mexico,” according to Bloomberg Businessweek. Ambiguous situations can energize people like Sepúlveda with a high tolerance for ambiguity. He is currently serving a 10-year prison term for his actions.79 When we combine the dimensions of value orientation and tolerance for ambiguity, they form four styles of decision making: directive, analytical, conceptual, and behavioral (see Figure 11.4). Let’s look at each of these. The Directive Style: Action-Oriented Decision Makers Who Focus on Facts People with a directive style have a low tolerance for ambiguity and are oriented toward task and technical concerns when making decisions. They are efficient, logical, practical, and systematic in their approach to solving problems. Directive decision makers are action oriented and decisive and like to focus on facts. In their pursuit of speed and results, how- ever, they tend to be autocratic, exercise power and control, and focus on the short run. THE BIGGER PICTURE Your decision-making style reflects the manner in which you use information to make deci- sions. It’s an input in the Organizing Framework. Knowing the four general styles of decision making will help you understand how your managers and coworkers are making their deci- sions; and it will help you know yourself that much better too. The four decision-making styles are directive, analytical, conceptual, and behavioral. Compare the four styles of decision making. LO 11-4 Organizational Behavior: A Practical, Problem-Solving Approach 443Decision Making and Creativity CHAPTER 11 Amazon CEO Jeff Bezos uses a directive style. Bezos is known to be decisive, makes decisions quickly, and pivots at breakneck speed when a strategy or course of action needs to be revised. According to Bezos, “Every day at Amazon is Day 1,” which means he expects Amazon employees to embrace the characteristics of a start-up company—an orga- nization that can shift its focus quickly to adjust to changing customer and market trends.80 The Analytical Style: Careful and Slow Decision Makers Who Like Lots of Information People with the analytical style have a much higher tolerance for ambiguity and tend to overanalyze a situation. They like to consider more information and alternatives than do those with a directive style. Analytical individuals are careful decision makers who take longer to make decisions but who also respond well to new or uncertain situations. They can often be autocratic. IBM CEO Ginni Rometty appears to have an analytical style. She and her manage- ment team must analyze business and technology trends worldwide to determine the best course of action for increasing company revenues and moving the company forward in an FIGURE 11.4 Decision-Making Styles SOURCE: Rowe, Alan J., and Richard O. Mason. Managing with Style: A Guide to Understanding, Assessing, and Improving Decision Making. San Francisco: Jossey-Bass, 1987. Analytical Conceptual Directive Task and technical concerns Low High Tolerance for Ambiguity People and social concerns Value Orientation Behavioral IBM CEO Ginni Rometty uses her analytic style to gather relevant data and evaluate business and technology trends worldwide to assist in making critical decisions for her organization. Justin Sullivan/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 444 PART 2 Groups era of digital disruption. As CEO, Rometty has shifted IBM’s focus from computers to cloud computing, blockchain technology, big data, and artificial intelligence.81 The Conceptual Style: Intuitive Decision Makers Who Involve Others in Long-Term Thinking People with a conceptual style have a high tolerance for ambiguity and tend to focus on the people or social aspects of a work situation. They take a broad perspective on prob- lem solving and like to consider many options and future possibilities. Conceptual types adopt a long-term view and rely on intuition and discussions with others to acquire infor- mation. They also are willing to take risks and are good at finding creative solutions to problems. On the downside, however, a conceptual style can foster an idealistic and inde- cisive approach to decision making. Netflix CEO Reed Hastings exhibits this style of decision making.82 The Behavioral Style: Highly People-Oriented Decision Makers The behavioral style is the most people-oriented of the four. People with this style work well with others and enjoy social interactions in which opinions are openly exchanged. Behavioral decision makers are supportive, are receptive to suggestions, show warmth, and prefer verbal to written information. Although they like to hold meetings, they prefer to avoid conflict and can be too concerned about others. This can lead behavioral types to adopt a conflict-avoidance approach to decision making and to have a hard time saying no. Madeline Bell, CEO of Children’s Hospital of Pennsylvania, uses this decision-making style successfully by identifying and engaging the key people who need to be on board with major decisions made at one of the top children’s hospitals in the country.83 Which Style Are You? Research reveals that very few people have only one dominant decision-making style. Rather, most managers have characteristics that fall into two or three styles. Studies also show that decision-making styles vary by age, occupation, personality type, gender, and country.84 It’s important to understand your decision-making style because it affects the quality of your decisions and team performance.85 Self-Assessment 11.2 will enhance your understanding about your decision-making style. What Is My Decision-Making Style? Please be prepared to answer these questions if your instructor has assigned Self- Assessment 11.2 in Connect. 1. Do you agree with your results? Explain. 2. Which of these styles is most important in your role as a student and in your cur- rent job? 3. Based on your answer to question 2, what might you do to modify your decision- making style? SELF-ASSESSMENT 11.2 CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 445Decision Making and Creativity CHAPTER 11 THE BIGGER PICTURE Sometimes you may find yourself confused about the ethics of a situation. One way to gain some certainty is to graph the situation with a decision tree, which provides a framework for ethical decision making. 11.5 A ROAD MAP TO ETHICAL DECISION MAKING Although research tells us that ethical behavior is related to inputs such as personality, values, locus of control, and a culture and climate for ethics,86 there are few tools for help- ing individuals to navigate through ethical dilemmas or challenges. An approach sug- gested by Harvard Business School Professor Constance Bagley can help fill the gap. Bagley recommends a decision tree to help managers make ethical decisions.87 A decision tree  is a graphical representation of the process underlying decisions, and it shows the consequences of making various choices. You can follow Bagley’s decision tree, shown in Figure 11.5, by asking the following questions about your decision: Describe how to assess the ethics of decision making. LO 11-5 FIGURE 11.5 An Ethical Decision Tree SOURCE: Bagley, Constance E. “The Ethical Leader’s Decision Tree.” Harvard Business School Publishing, February 2003. https://hbr.org/2003/02/ the-ethical-leaders-decision-tree. Is the proposed action legal? Don’t do it. Yes No Don’t do it. Don’t do it. Do it.Yes No Do it, but disclose the e�ect of the action to shareholders. Yes No Does it maximize shareholder value? Yes No Is it ethical? (To answer, weigh the e�ect on customers, employees, the community, the environment, and suppliers against the benefit to the shareholders.) Would it be ethical not to take the action? (To answer, weigh the harm or cost that would be imposed on shareholders against the costs or benefits to other stakeholders.) Organizational Behavior: A Practical, Problem-Solving Approach 446 PART 2 Groups 1. Is the proposed action legal? This may seem like a common-sense question, but some managers and companies fail to ask it. Owners of Purdue Pharma, maker of the highly addictive opioid drug OxyContin, recently faced fraud charges in New York as a result of transferring funds from the com- pany to various family trusts in an effort to shield company assets from ongoing litigation.88 2. If “yes,” does the proposed action maximize shareholder value? A decision maximizes shareholder value when it increases profits for an organization, because these profits are eventually distributed to shareholders. Regardless of share- holder value, however, the decision Unethical decision making by the parent company of the University of Phoenix may have cost the for-profit education company dearly in terms of student enrollment over the past several years. Kristoffer Tripplaar/Alamy Stock Photo tree shows that managers still need to consider the ethical implications of each deci- sion or action. 3. If the decision maximizes shareholder value, the decision maker then considers whether or not the action is ethical. Managers should answer this question by weigh- ing the effect of the action on an organization’s other key constituents (customers, employees, the community, the environment, suppliers) against the benefit to the shareholders. For example, Apollo Education Group, the parent company of for- profit University of Phoenix, has been the subject of both state and federal investiga- tions that allege the company used aggressive and deceptive recruiting, advertising, and financial aid practices. Negative perceptions of the University of Phoenix may also be to blame for the substantial drop in student enrollment, more than 70 per- cent between 2010 and 2017.89 4. If the decision does not maximize shareholder value, then the decision maker should consider whether it would be ethical not to take the proposed action. If an action would not directly benefit shareholders, consider whether it would be ethical not to take it. The decision for the Apollo Education Group to continue to use existing, possibly unethical practices could also have an impact on other stakeholders, such as Univer- sity of Phoenix employees. A recent Glassdoor survey revealed that only 30 percent of the school’s employees would recommend working at the university to a friend or acquaintance.90 The decision tree cannot provide a quick formula that managers and organizations can use to evaluate every ethical question. Ethical decision making is not always clear- cut and is affected by cross-cultural differences and organizational culture and climate. Organizations are encouraged to conduct ethics training and to increase awareness about cross-cultural issues when the work engages people with mixed cultural back- grounds.91 That said, the decision tree does provide a framework for considering the trade-offs between managerial and corporate actions and managerial and corporate eth- ics. Try using this decision tree the next time you are faced with a significant ethical question or problem. Organizational Behavior: A Practical, Problem-Solving Approach 447Decision Making and Creativity CHAPTER 11 THE BIGGER PICTURE You’ve probably seen both good and poor results from a group decision. OB confirms that group decisions can lead to mixed results. It identifies five potential advantages and four disadvantages. Knowing them arms you with information to help you maximize the advantages and minimize the disadvantages. In this section you will find contingency recommendations for working with groups in decision making and three helpful group problem-solving techniques: brainstorming, the nominal group technique, and computer-aided decision making. 11.6 GROUP DECISION MAKING Aristotle was an early proponent of group decision making. He concluded that “when there are many who contribute to the process of deliberation, each can bring his share of goodness and more prudence . . . some appreciate one part, some another, and all together appreciate all.”92 Aristotle is suggesting that group decision making is more effective when individuals in the group share and aggregate their information. As you well know, this does not always happen when groups make decisions. This section will help you learn about decision making in groups so you can achieve Aristotle’s proposed benefits. Outline the basics of group decision making. LO 11-6 Aristotle (384-322 bc) was a Greek philosopher and scientist. His writings span many subjects and he highly believed in the value of using logic and empirical data when making decisions. QEDimages/Alamy Stock Photo Organizational Behavior: A Practical, Problem-Solving Approach 448 PART 2 Groups Advantages and Disadvantages of Group Decision Making We often have to decide whether to make a decision alone or to consult with others. The following list of advantages and disadvantages can help you decide what to do. Advantages These five advantages are most likely to be found when the group has experience with the issue at hand, and when it is diverse in terms of characteristics such as personalities, gender, attitudes, and experience.93 • Greater pool of knowledge. A group possesses more information and knowledge than one individual acting alone. • Different approaches to a problem. Individuals with different backgrounds and expe- riences bring varied perspectives to diagnosing and solving problems. • Greater commitment to a decision. Participation and a voice in decision making are more likely to result in commitment to a decision. This in turn leads group members to accept and feel responsible for implementing a proposed solution. • Better understanding of decision rationale. Participating in a decision increases group members’ understanding about why the decision is being made and what must occur to implement it. This in turn reduces miscommunication among people. • More visible role modeling. Less experienced group members learn about group dynamics and how to solve problems.94 Disadvantages The disadvantages of group-aided decision making relate to group dynamics and interpersonal interactions.95 • Social pressure. The desire to look good in front of others, particularly the boss, leads to conformity and stifles creativity. • A few dominant participants. The quality of a group’s decision can be influenced by a few vocal people who dominate the discussion. This is particularly problematic when the vocal person is perceived as a powerful individual. • Goal displacement. When the group is evaluating alternatives, secondary considerations such as winning an argument, getting back at a rival, or trying to impress the boss can override the primary goal of solving a problem. Goal displacement  occurs when the primary goal is overridden by a secondary goal.96 • Groupthink. Groupthink  is “a mode of thinking that people engage in when they are deeply involved in a cohesive in-group, when members’ strivings for unanimity override their motivation to realistically appraise alternative courses of action.”97 Groupthink is thoroughly discussed in the next section. Groupthink The term groupthink, defined above, originated from an analysis of the decision-making processes underlying the war in Vietnam and other U.S. foreign policy fiascos. Groupthink happens when members fail to exercise sufficient reality testing and moral judgment due to pressures from the group. If they passively ignore the danger, modern managers can all too easily become victims of groupthink. Consider the group of 14 teachers and other staff members in an Idaho school district who decided to dress up as ethnic stereotypes for Halloween recently and followed that up with an impersonation of a Mexican border wall. Despite being taken down from Facebook, these photos quickly went viral and sparked outrage both locally and nationally. “We are better than this,” said the school superintendent— all 14 individuals were placed on administrative leave.98 As you might imagine, groupthink negatively affects group performance and is often driven by high levels of cohesiveness.99 Cohesiveness  or a sense of “we-ness” tends to override individual differences and motives. Members of groups tend to be cohesive Organizational Behavior: A Practical, Problem-Solving Approach 449Decision Making and Creativity CHAPTER 11 for two fundamental reasons: (1) they like and enjoy each other’s company and (2) they need each other to achieve a common goal. You can see how cohesiveness is a double-edged sword in its effects on group-level outcomes in the Organizing Framework. It can help you and your team reduce conflict, but it can also reduce performance if it limits questioning and critical thinking and results in groupthink.100 How do you avoid group- think? First, know the symptoms. Symptoms of Groupthink There are eight common symptoms of groupthink. The more that are present in a situation, the higher the probability that groupthink will occur. 1. Invulnerability. An illusion that the group cannot make a mistake breeds excessive optimism and risk taking. 2. Inherent morality. Assuming the group is highly moral encourages members to ignore ethical implications. 3. Rationalization. Members protect their personal or “pet” ideas and assumptions. 4. Stereotyped views of opposition. The group may underestimate opponents. 5. Self-censorship. Keeping ideas and questions to yourself stifles critical debate. 6. Illusion of unanimity. Members’ silence can be interpreted to mean consent. 7. Peer pressure. Be careful when the loyalty of dissenters is questioned. 8. Mindguards. Self-appointed protectors can shut out adverse information.101 Prevention Is Better than Treatment Prevention is better than treatment or cure when dealing with groupthink. Table 11.1 provides excellent recommendations for removing barriers to minority dissent. Minority dissent  occurs when group members feel com- fortable disagreeing with other group members. Research reveals that minority dissent is positively related to participation in decision making and job satisfaction.102 Are you working on any project teams at school or work? If yes, you may be interested in assessing the level of minority dissent and participation in decision making. Results from Self-Assessment 11.3 can help you to improve your effectiveness within these teams. TABLE 11.1 Techniques for Preventing Groupthink 1. Each member of the group should be assigned the role of critical evaluator or dissenter. This role requires the active voicing of objections and doubts. 2. Top-level executives should not use policy committees to rubber-stamp decisions that have already been made. 3. Different groups with different leaders should explore the same policy questions. 4. Managers should encourage subgroup debates and bring in outside experts to introduce fresh perspectives. 5. Someone should be given the role of devil’s advocate when discussing major alternatives. This person tries to uncover every conceivable negative factor. 6. Once a consensus has been reached, everyone should be encouraged to rethink his/her position to check for flaws. SOURCES: Thibodeaux, Wanda. “How to End Groupthink and Encourage Your Team to Be Creative.” Mansueto Ventures, December 10, 2018. https://www.inc.com/wanda-thibodeaux/how-to-end-groupthink-encourage-your-team-to-be-creative.html; Price, Dom. “Need Fresh Ideas? 5 Ways to Disrupt Groupthink.” Mansueto Ventures, October 23, 2018. https://www.inc.com/ dom-price/need-fresh-ideas-5-ways-to-disrupt-groupthink.html; and Janis, Irving L. “Victims of Groupthink.” Political Psychology 12, no. 2 (June 1991): 247–78. https:// DOI: 10.2307/3791464. Organizational Behavior: A Practical, Problem-Solving Approach 450 PART 2 Groups Practical Contingency Recommendations for Group Decision Making There are three practical considerations in decision making. 1. Routine and frequency: If the decision occurs frequently and is of a routine nature, such as deciding on promotions or who qualifies for a loan, use groups because they tend to produce more consistent decisions than do individuals. 2. Time constraints: Given time constraints, let the most competent individual, rather than a group, make the decision. 3. Information and communication: In the face of environmental threats such as time pressure and potential serious effects of a decision, groups use less information and fewer communication channels. This increases the probability of a bad decision. Reaching Consensus: The Goal of Group Problem-Solving Techniques Groups asked to make decisions must generally reach a consensus. According to a decision-making expert, a consensus  “is reached when all members can say they either agree with the decision or have had their ‘day in court’ and were unable to convince the others of their viewpoint. In the final analysis, everyone agrees to sup- port the outcome.”103 This definition indicates that consensus does not require unani- mous agreement, because group members may still disagree with the final decision but are willing to work toward its success. They must honestly and accurately communicate with each other when trying to reach a consensus. Practical Problem-Solving Techniques Decision-making experts have developed a host of problem-solving techniques to aid in problem solving. Three we discuss here are (1) brainstorming, (2) the Delphi technique, and (3) decision support systems. Brainstorming: A Tool for Generating Ideas Brainstorming  helps groups gener- ate multiple ideas and alternatives for solving problems. Developed by advertising exec- utive A. F. Osborn, brainstorming can apply in a variety of contexts.104 They include solving problems, developing creative ideas for new products, removing performance roadblocks, and developing action plans to achieve goals. Brainstorming sessions begin by asking partici- pants to silently generate ideas or solutions, which then are collected either in public or anonymously and summarized in some fashion (such as on a whiteboard or a flip chart). TIP It’s good to collect the ideas/solutions anonymously if the issue is emotional, political, or highly salient/sensitive to some group members.105 Assessing Participation in Group Decision Making Please be prepared to answer these questions if your instructor has assigned Self-Assessment 11.3 in Connect. 1. What is your level of minority dissent and participation in decision making? 2. Are you happy with these results? 3. How might you increase the level of minority dissent and participation in this group? Consider the ideas in Table 11.1. SELF-ASSESSMENT 11.3 Organizational Behavior: A Practical, Problem-Solving Approach 451Decision Making and Creativity CHAPTER 11 At a second session group members critique and evaluate the alternatives. Today, many brainstorming sessions are conducted electronically. Electronic brainstorming,  some- times called brainwriting, allows participants to submit their ideas and alternatives over the Internet. Webinars and other virtual collaboration tools such as MeetingRoom. io, MURAL, and Appear.in work well for this purpose.106 Managers are advised to follow the seven rules for brainstorming used by IDEO, a product design company (see Table 11.2). Brainstorming is an effective technique for generating new ideas/alternatives, and research reveals that people can be trained to improve their brainstorming skills.107 The Delphi Technique The Delphi technique was originally developed by the RAND Corp. for technological forecasting.108 It now serves as a multipurpose plan- ning tool. The Delphi technique  is a group process that generates anonymous ideas or judgments from physically dispersed experts in multiple rounds of brainstorming. This technique is useful when face-to-face discussions are impractical, when disagree- ments and conflict are likely to impair communication, when certain individuals might severely dominate group discussion, and when groupthink is a probable outcome of the group process.109 Decision Support Systems The increased globalization of organizations, the existence of big data, and the advancement of information technology have led to the development of decision support systems. Decision support systems (DSS)  are “computer-based interactive systems that help decision makers to use data and models to solve unstructured problems.”110 For example, Best Buy, Google, GE, Intel, and Microsoft all use internal intranets to obtain input for their DSS from employees. Both Best Buy and Google found DSS systems helpful in estimating the demand for new products and services.111 They also improve information processing and decision making within virtual teams.112 RULE DETAILS 1. Defer judgment. Don’t criticize during the initial stage of generating ideas. Avoid phrases such as “We’ve never done it that way,” “It won’t work,” “It’s too expensive,” and “Our manager will never agree.” 2. Build on the ideas of others. Encourage participants to extend others’ ideas by avoiding “buts” and using “ands.” 3. Encourage wild ideas. Encourage out-of-the-box thinking. The wilder and more outrageous the ideas, the better. 4. Go for quantity over quality. Guide participants to generate and write down as many new ideas as possible. Focusing on quantity encourages people to think beyond their favorite ideas. 5. Be visual. Use different colored pens (e.g., red, purple, blue) to write on big sheets of flip chart paper, whiteboards, or poster board that is put on the wall. 6. Stay focused on the topic. Appoint a facilitator to keep the discussion on target. 7. Keep to one conversation at a time. Set ground rules that no one interrupts another person, dismisses someone’s ideas, shows disrespect, or otherwise behaves rudely. TABLE 11.2 Seven Rules for Brainstorming SOURCES: IDEO. “Effective Brainstorming Techniques.” Accessed May 22, 2019. https://www.ideou.com/pages/brainstorming; Shellenbarger, Sue. “Tactics to Spark Creativity.” The Wall Street Journal, April 2, 2013. https://www.wsj.com/articles/SB10001424127887323611604578398342398991844; “How Entrepreneurs Come Up With Great Ideas.” The Wall Street Journal, April 29, 2013. https://www.wsj.com/articles/SB10001424127887324445904578283792526004684; and Lehrer, Jonah. “How To Be Creative.” The Wall Street Journal, March 12, 2012. https://www.wsj.com/articles/SB10001424052970203370604577265632205015846. Organizational Behavior: A Practical, Problem-Solving Approach 452 PART 2 Groups 11.7 CREATIVITY Creativity  is defined here as the process of producing “new and useful ideas con- cerning products, services, processes, and procedures.”113 Being creative can be as simple as locating a new place to hang your car keys or as complex as developing a pocket- size microcomputer. You can create something new, combine or synthesize existing things, or improve or change things. Recent research suggests that creativity and curiosity are much more important to organizations than previously thought. Cultivating creativity at all levels helps managers and leaders adapt to uncertain market conditions and other exter- nal pressures. When our curiosity is triggered, we think more deeply about decisions and come up with more creative solutions.114 Let’s consider a model of creativity to gain some insight into ways you can increase your own creativity and, as a manager, do the same for your employees. A Model of Creativity Figure 11.6 illustrates a model of creativity. You can see that it flows nicely from the Organizing Frame- work for Understanding and Applying OB in that a combination of person factors and situation factors influence creative performance behaviors, which in turn affect creative outcome effectiveness. Let’s explore this model, starting with a discussion of the difference between creative performance behaviors and creative outcome effectiveness. Creative Performance Behaviors Produce Creative Outcome Effectiveness Creative performance behaviors  are four key behaviors that drive the production of creative outcomes. Creative outcome effectiveness  is “the joint novelty and usefulness (quality) of a product or service” as judged by others.115 Researchers believe the four behaviors consti- tuting creative performance behaviors unfold accord- ing to the following sequence.116 •  Problem formulation/definition. Problem formu- lation is the familiar Step 1 in our 3-Step THE BIGGER PICTURE Can you become more creative if you need to? As a manager, can you improve the creativity of your group? The answer to both questions is yes. When you consider creativity from an OB perspective, you will see it as both a process and an outcome (see the Organizing Framework in Figure 11.1). The process aspect of creativity includes four key behaviors: problem formu- lation/definition, preparation/information gathering, idea generation, and idea evaluation/ validation. You can increase creativity by following some practical recommendations. Explain how creativity relates to decision making. LO 11-7 FIGURE 11.6 A Model of Creativity Creative performance behaviors Creative outcome e�ectiveness Person factors Situationfactors McGraw-Hill Global Education Holdings, LLC Organizational Behavior: A Practical, Problem-Solving Approach 453Decision Making and Creativity CHAPTER 11 Problem-Solving Approach. The practice of accu- rately defining the problem will enhance your cre- ativity, and it requires System 1 thinking (System 1 thinking is intuitive and mainly unconscious). • Preparation/information gathering. The preparation stage reflects the notion that creativity starts from a base of knowledge. Experts suggest that creativity arises from the convergence of tacit and explicit knowledge. Lowell Wood, the most prolific inventor in U.S. history—he holds 1,761 patents, many more than Thomas Alva Edison—is inventor in residence at Intellectual Ventures. EXAMPLE Wood is an astrophysicist, a self-taught paleontologist, and a computer scientist. He works hard at being creative. In commenting about his time studying in college and graduate school, he told a writer from Bloomberg Businessweek that he “often failed or received the lowest score on the first exam given in a particular course and improved his marks through repetition and intense effort.” He credits his ability to find creative solutions to problems to the amount of reading he does. He religiously reads three dozen academic journals from varying fields of study. He got this habit from chemist and author Linus Paul- ing. Wood asked Pauling how he comes up with all his great ideas. Pauling said, “There’s really nothing to it all. You just read, and you remember what you read.”117 As Lowell Wood’s career demonstrates, preparation/information gathering consists of intentionally and actively searching for new information related to a problem. • Idea generation. Generating ideas requires making new mental connections about the task or problem at hand. This behavior is emphasized in brainstorming and calls for System 1 thinking. • Idea evaluation/validation. Selecting the most creative and promising idea from among multiple options relies on System 2 thinking (System 2 thinking is analytical and mainly conscious). Drivers of Creative Performance Behaviors Figure 11.6 shows that person fac- tors and situation factors go into producing the four creative performance behaviors (and they are inputs in the Organizing Framework of OB). Here is a summary of person factors and situation characteristics, identified through research, that drive creative performance behaviors: • Person factors. Creativity starts with motivation and domain-relevant knowledge. Like Lowell Wood, people need to be motivated to apply their knowledge and capabilities to create new ideas, new products, and solutions to all sorts of prob- lems.118 Other drivers of creativity include the Big Five personality dimensions, self- efficacy, national culture, willingness to tolerate ambiguity, and proactive personality.119 • Situation factors. High-commitment work systems promote creative behavior. High-commitment work systems  rely on selective hiring, comprehensive training, comparatively high pay, pay contingent on performance, and good benefits.120 We suspect that high-performance work systems demonstrate a form of social support for employees, leading them to put more effort into creative Lowell Wood obtained his 1,761st patent in August 2018, passing Thomas Edison as the all-time most prolific inventor from the United States. Alex Wong/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 454 PART 2 Groups behaviors. Other important situation factors include interpersonal diversity, time pressure, positive relationships with supervisors and coworkers, mutual account- ability among group members, and spatial configuration of work settings.121 For example, many organizations, such as Google, Zappos, Salesforce.com, and Etsy, are designing the work environment to encourage casual conversations among employees who don’t generally work together. A Wall Street Journal reporter noted that these companies do this by “squeezing workers into smaller spaces so they are more likely to bump into each other.” They also are “installing playful prompts, like trivia games, to get workers talking in traditional conversational dead zones, such as elevators.”122 Organizational culture and climate also contribute to the expression of creative behav- iors.123 Self-Assessment 11.4 measures creativity climate. If you are curious about whether a current or former employer has a climate for creativity, complete this assessment. This Google office in London illustrates the type of “cozy” work environment that promotes creativity. Would you find this office distracting, or do you think it would increase your creative performance? View Pictures/Universal Images Group/Getty Images Assessing Climate for Creativity Please be prepared to answer these questions if your instructor has assigned Self- Assessment 11.4 in Connect. 1. What items most and least contributed to the company’s creative climate? 2. Based on your results and suggestions in the Applying OB box below, what would you do to increase the level of creativity in this organization? SELF-ASSESSMENT 11.4 Organizational Behavior: A Practical, Problem-Solving Approach 455Decision Making and Creativity CHAPTER 11 Practical Recommendations for Increasing Creativity While some consultants recommend hypnotism as a good way to increase employees’ cre- ativity, we prefer suggestions derived from research and practical experience. The first recommendation is to effectively manage the four creative performance behaviors. Another is to allow yourself to enjoy boredom. According to experts, “when we experience bore- dom, two areas of the brain may be busy working closely together—the executive network, which solves problems, and the so-called default network, which takes over when your brain isn’t involved with something external. The result is enhanced creativity.”124 This sug- gests that doing “nothing,” such as “just sitting in a café, strolling in the park, lying on the beach, or even staring into space while everyone else is running busily, may be one of the most important creative things we can do,” according to management expert Manfred Kets de Vries.125 Research also has uncovered some practical tips that all of us can use to increase our creativity. Applying OB Tips for Sparking Creativity You can often renew your creativity simply by shaking up your routine. These tips offer a quick and powerful creative boost.126 1. Change your commute. Take a different route to work or walk part of the way. If you work at home, take a walk before you start. 2. Listen to noise. Research by a Chinese university found that a moderate level of noise, not silence, makes people more productive.127 Listen to music or an ambient-noise app like Coffivity (wear head- phones if you have coworkers). 3. Move your lunch. Go somewhere new for lunch. If you work at home, prepare a new dish or invite someone over. 4. Change your workspace. Instead of your home office, park at the kitchen counter or a coffee shop. In an office environment, ask to borrow an unused space. 5. Try a creativity exercise. Pick an everyday object like a coffeepot and write a few sentences about what it reminds you of. There is one final issue to consider. Should organizations use extrinsic rewards such as pay and promotions to enhance creativity? While it seems like common sense to do this, research reveals rewards have conflicting effects on creative behavior. When rewards make people feel like they are being controlled, they can reduce creativity. On the other hand, when rewards provide information about what is important and valued, they can increase creativity. Putting it all together, a team of researchers concluded, “The effects of rewards on creative performance depend on the nature of rewards and the context in which the rewards are being offered.”128 This tells us managers should not use a “one size fits all” approach when linking rewards to creative behavior.129 Organizational Behavior: A Practical, Problem-Solving Approach 456 PART 2 Groups 11.8 MAKING THE CONNECTION: HOW CAN I MASTER DECISION-MAKING AND CREATIVITY SKILLS? Takeaways for Me Here are seven things you can do to turn this chapter’s lessons into positive change in your personal and professional life. 1. Work on developing your critical thinking and problem-solving skills: You might begin by trying to solve all the problem-solving application boxes and cases in this book. You can also take an active role in case discussions in other classes. 2. Practice identifying problems at work: Consider recommending alternative solutions to your manager. 3. Examine past decisions that turned out poorly and consider whether you were influenced by any of the eight decision-making biases: Use awareness of these biases to avoid auto- matically applying them in the future. 4. Assess your decision-making style: Consider its impact on your teamwork at school and on the job. 5. Use the ethical decision-making tree when you try to solve the legal/ethical challenges at the end of each chapter in the book. 6. Use the guidelines for brainstorming whenever you brainstorm with others. 7. Find ways to apply the tips for sparking creativity. Takeaways for Managers There are six key implications for managers. 1. Recognize that your decision-making skills affect your career progression as well as influence a variety of important individual, group, and organizational outcomes. 2. Use awareness of decision-making biases to help you avoid them. 3. Analyze the strengths and weaknesses of your decision-making style: Then try to build on your strengths. 4. Consider how you might use big data in your managerial role: If you lack the statistical background to make this happen, you might take an internal training class or look for one online. 5. Train your employees to effectively conduct brainstorming sessions. 6. Consider how you can spark creativity among your team by applying the model of creativity: Remember, creative behavior from your team will positively affect a host of important outcomes. THE BIGGER PICTURE Developing effective decision-making skills takes practice and can be influenced by a person’s creativity. Here are some key points to consider. Describe the implications of decision making and creativity for you and managers. LO 11-8 Organizational Behavior: A Practical, Problem-Solving Approach 457Decision Making and Creativity CHAPTER 11 You learned that it is critical to master the skills of both decision making and creativity and that you have tools and techniques available to you to do just that. Reinforce your learning with the Key Points below. Consolidate your learning using the Organizing Framework. Then challenge your mas- tery of the material by answering the Major Ques- tions in your own words. Key Points for Understanding Chapter 11 You learned the following key points. 11.1 RATIONAL AND NONRATIONAL MODELS OF DECISION MAKING • There are two fundamental ways of thinking. System 1 is more intuitive and unconscious, and System 2 is more analytical and conscious. • The rational model explains how managers should make decisions. • The four stages of rational decision making are (1) identify the problem or opportunity, (2) generate alternative solutions, (3) evalu- ate alternatives and select a solution, and (4) implement and evaluate the solution chosen. • Nonrational models explain how managers actually make decisions. Two nonrational models are the normative model and the intu- itive model. • According to the normative model, decision makers are guided by bounded rationality, which represents the fact that decision makers are “bounded” or restricted by dif- ferent constraints. This limitation leads to satisficing. • There are two types of intuition: holistic hunches and automated experiences. Intuition is represented by two distinct processes: one is automatic and the second is controlled, and there are two sources of intuition: expertise and feelings. 11.2 DECISION-MAKING BIASES: RULES OF THUMB OR “HEURISTICS” • Decision-making bias results from the use of judgmental heuristics. The eight biases are (a) confirmation, (b) overconfidence, (c) avail- ability, (d) representativeness, (e) anchoring, (f) hindsight, (g) framing, and (h) escalation of commitment. 11.3 EVIDENCE-BASED DECISION MAKING • The goal of evidence-based decision making is to conscientiously use the best data when making decisions. • Evidence-based decision making has three purposes: to make decisions, to inform deci- sions, and to support decisions. • Big data denotes the vast quantity of data available for decision making. It makes infor- mation more transparent and usable, allows organizations to measure and collect many types of performance data, allows the seg- mentation of customers, and can help in developing new products. • Artificial intelligence (AI) is a form of comput- ing that allows machines to perform cognitive functions, such as acting or reacting to inputs, similar to the way humans do. AI can help managers enhance business operations by automating business processes, gaining insight through data analysis, and engaging with customers and employees. What Did I Learn? Organizational Behavior: A Practical, Problem-Solving Approach 458 PART 2 Groups 11.7 CREATIVITY • Creativity is the process of using imagination and skill to develop a new or unique product, object, process, or thought. • Four creative performance behaviors to increase your creativity are problem formulation/ definition, preparation/information gathering, idea generation, and idea evaluation/validation. • Creative behaviors are influenced by a host of person factors and situation factors. 11.8 HOW CAN I MASTER DECISION-MAKING AND CREATIVITY SKILLS? • Work on developing your critical thinking and problem-solving skills, which will be essential to your professional success. • Examine previous poor decisions and con- sider whether you were influenced by any of the decision-making biases discussed in this chapter. • Evaluate your decision-making style and determine whether it will help or hinder you in your professional career. The Organizing Framework for Chapter 11 You learned that decision making is a key process at both the individual and group/team levels, and it is affected by a host of person factors such as intuition, decision making styles, personality, and self-efficacy. Decision making also is influenced by situation factors associated with the decision situation, organizational culture, and organiza- tional climate. As shown in Figure 11.7, a number of additional processes affect outcomes associ- ated with decision making. Decision making is associated with the individual outcomes of task performance, career outcomes, and creativity. At the group level, it affects group/team perfor- mance and group cohesion and conflict. Finally, decision making affects an organization’s overall financial performance, innovation, and customer satisfaction. 11.4 FOUR DECISION-MAKING STYLES • The model of decision-making styles is based on the idea that styles vary along two dimen- sions: value orientation and tolerance for ambiguity. • There are four styles of decision making: analytical, conceptual, behavioral, and directive. 11.5 A ROAD MAP TO ETHICAL DECISION MAKING • A decision tree is a graphical representation of the process underlying decisions. • The ethical decision tree is a structured approach for making ethical decisions. • Answering a series of questions in the tree leads to a recommended decision. 11.6 GROUP DECISION MAKING • There are both pros and cons to using groups in the decision-making process. • The advantages include (1) a greater pool of knowledge, (2) different approaches to a problem, (3) greater commitment to deci- sions, and (4) more visible role modeling. • The disadvantages to using groups include (1) social pressure to make particular deci- sions, (2) dominance by a few people, (3) goal displacement, and (4) groupthink. • Groupthink reduces the quality of decisions and is caused by high levels of cohesiveness among group members that overrides indi- vidual differences. • Seven symptoms of groupthink help predict its occurrence. • A contingency approach can help in deciding whether to include groups in the decision- making process. • Three common problem-solving tools are brainstorming, the Delphi technique, and decision support systems (DSS). Organizational Behavior: A Practical, Problem-Solving Approach 459Decision Making and Creativity CHAPTER 11 2. It’s hard to be rational. What biases get in the way? 3. How can I more effectively use evidence- based decision making? 4. How do I decide to decide? 5. How can I assess the ethics of my decisions? 6. What are the pros and cons of group decision making and the various problem-solving tools? 7. How can I increase my own creative behavior and that of my employees? Challenge: Major Questions for Chapter 11 You should now be able to answer the following questions. Unless you can, have you really pro- cessed and internalized the lessons in the chapter? Refer to the Key Points, Figure 11.7, the chapter discussion, and your notes to revisit and answer the following major questions: 1. How can I integrate rational and nonrational models of decision making? FIGURE 11.7 Organizing Framework for Understanding and Applying OB INPUTS PROCESSES OUTCOMES Person Factors • Intuition • Judgmental heuristics • Decision-making styles • Ethical values • Personality • Self-efficacy • National culture Situation Factors • Decision situation • Organizational culture • Organizational climate Individual Level • Rational/nonrational decision making • Ethical decision making • Creativity Group/Team Level • Rational/nonrational decision making • Groupthink • Minority dissent • Consensus • Creativity Organizational Level • Evidence-based decision making • Creativity Individual Level • Task performance • Career outcomes • Creativity Group/Team Level • Group/team performance • Group cohesion and conflict Organizational Level • Accounting/financial performance • Legal liability • Innovation • Customer satisfaction ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. Organizational Behavior: A Practical, Problem-Solving Approach 460 PART 2 Groups Airbus SE is Europe’s largest aircraft manufacturer with revenues exceeding $71 billion in 2018. Boeing, the company’s chief rival, dominated the long-haul market with its flagship, double-decker 747 aircraft for decades. In 2005 Airbus unveiled its A380 aircraft with a range of 8,000 nautical miles to challenge Boeing’s dominance of this important market. The four-engine A380 superjumbo is certified for up to 853 passengers, making it the world’s largest passenger aircraft. We want you to consider how the decision-making process led Airbus in 2019 to cease production of the A380. Overall, the company expects to have sold 251 planes by the time it ceases production in 2021, well under its breakeven target.130 The decision to stop production also means a reduction of about 3,500 jobs, and the company will not recoup the roughly $25 billion it invested in the aircraft project.131 CHANGING MARKET DEMANDS Airbus began development of the A380 in the 1990s. The manufacturer believed it had identified an opportunity: as air travel increased there would be a need for larger aircraft. Airports in hub cities, such as London, Tokyo, and New York, only had so much capacity. So a massive aircraft that could seat a large number of passengers seemed like an ideal solution.132 The gigantic aircraft was a hit with airplane enthusi- asts, but the industry was experiencing three unex- pected changes. First, bilateral and multilateral agreements eased airport congestion. Traditionally, countries granted each other landing rights for a fixed number of flights per week to a fixed destination. Then came “Open Skies” agreements that provided unre- stricted access to all airports.133 These agreements facilitated the growth of secondary airports so passen- gers could take advantage of lower fare tickets. “The A380 was better suited to 1995, before air routes fragmented,” said Richard Aboulafia, an aviation expert.134 For example, London was no longer the premier destination in the UK with cities such as Manchester becoming hubs of their own.135 Second, Airbus grossly misjudged future passenger preferences. The company’s initial research in the 1990s focused on Boeing’s 747, which offered fewer flights, but more capacity on each one. The A380 launched more than a decade after this research was conducted. Passenger preferences had actually switched to wanting more flight times by the time the A380 went into service. Business travelers needed flexibility for flight departures between popular desti- nations, and this often meant more flights with each not operating at full capacity.136 An airline strategist told Bloomberg that the A380 was “Too costly to fly anything but near full, and unusable on any less dense sectors.”137 Finally, many airlines have turned to smaller, fuel- efficient aircraft, such as Boeing’s 787 Dreamliner. “As smaller, more efficient planes flood the market . . . [it kills] the case for larger aircraft,” according to the New York Times.138 The two-engine Dreamliner has a lightweight carbon fiber body with significantly less fuel cost than the A380. The Dreamliner is much smaller than the A380, but that works out just fine in an era where each flight consists of fewer passen- gers who demand flexibility in the number of flights available to them.139 THE PRODUCTION PROCESS Airbus had trouble delivering the first A380s on time and within budget because the manufacturer realized it had underestimated the complexity of wiring the air- craft and it used a multinational design team. Airbus is in fact a partnership between different European nations. This results in different designers, using differ- ent software, making group decisions on the design of aircraft. Multinational representation at Airbus went all the way to the upper echelons of the company until 2006. In fact, the manufacturer was led by French and German co-CEOs throughout the development of the A380. The superjumbo, dubbed the “Eighth Wonder of PROBLEM-SOLVING APPLICATION CASE  Airbus Decides to Permanently Land the A380 Organizational Behavior: A Practical, Problem-Solving Approach 461Decision Making and Creativity CHAPTER 11 accomplished, decide which one is most important and focus on it for steps 2 and 3. B. Cases have protagonists (key players), and problems are generally viewed from a particu- lar protagonist’s perspective. Take the per- spective of a member of the task force investigating this problem. C. Use details in the case to identify the key prob- lem. Don’t assume, infer, or create problems that are not included in the case.  STEP 2: Identify causes of the problem by using material from this chapter, summarized in the Organizing Framework shown in Figure 11.7. Causes will appear in either the Inputs box or the Processes box.  A. Start by looking at the Organizing Framework to identify which person factors, if any, are most likely causes to the defined problem. For each cause, ask yourself, Why is this a cause of the problem? Asking why multiple times is more likely to lead you to root causes of the problem. B. Follow the same process for the situation factors. C. Now consider the Processes box shown in Figure 11.7. Consider concepts listed at all three levels. For any concept that might be a cause, ask yourself, Why is this a cause? Again, do this for several iterations to arrive at root causes. C. To check the accuracy or appropriateness of the causes, map them onto the defined problem. STEP 3: Make your recommendations for solving the problem. Consider whether you want to resolve it, solve it, or dissolve it (see Section 1.5). Which recom- mendation is desirable and feasible? A. Given the causes identified in Step 2, what are your best recommendations? Use the content in Chapter 11 or one of the earlier chapters to propose a solution. B. You may find potential solutions in the OB in Action boxes and Applying OB boxes within this chapter. These features provide insights into what other individuals or companies are doing in relationship to the topic at hand. C. Create an action plan for implementing your recommendations. the World,” represented all that was great about the European Union, including shared leadership.140 “From its inception, the A380 was a grand European project,” according to Bloomberg.141 This pride may have interfered in the production group’s decision-making processes. “Airbus stum- bled into this production fiasco because of overcon- fidence in its own abilities,” company veterans told The Wall Street Journal. These issues also caused the goal of the project to shift. Steven Udvar-Hazy, a pioneer of aircraft leasing, told the Journal that the A380 went from its original goal of hub-to-hub trans- port during congested times to pure “. . . political ambition to outdo Boeing Co.’s 747 jumbo jet as the world’s largest airliner.”142 EMIRATES IMPACTS DECISION MAKING AT AIRBUS Emirates Airlines is known as the chief sponsor of the A380 and ordered more than 160 units, far more than any other carrier.143 The Dubai-based airline also placed an order for 20 additional planes in January 2018, giving life to the floundering program. Emirates canceled the order a year later when it was not able to secure price and performance concessions from engine-maker Rolls-Royce.144 The cancellation was the last straw for Airbus. “As a result of this decision we have no substantial A380 backlog and hence no basis to sustain production, despite all our sales efforts with other airlines in recent years,” former Airbus CEO Tom Enders said.145 Airbus was thus forced to terminate production of an aircraft that could not match its popu- lar appeal with revenues. APPLY THE 3-STEP PROBLEM- SOLVING APPROACH TO OB STEP 1: Define the problem. A. Look first at the Outcomes box of the Organizing Framework in Figure 11.7 to help identify the important problem(s) in this case. Remember that a problem is a gap between a desired and a current state. State your problem as a gap, and be sure to consider problems at all three levels. If more than one desired outcome is not being Organizational Behavior: A Practical, Problem-Solving Approach 462 PART 2 Groups LEGAL/ETHICAL CHALLENGE Should Colleges Expel Students Whose Parents Cheated to Get Them In? The largest academic fraud scandal to date occurred in March 2018. Federal prosecutors charged 50 indi- viduals with a variety of crimes, including money laundering. Wealthy television actresses, corporate executives, hedge fund managers, and others are said to have paid $25 million to college officials to secure slots for their children.146 How Did the Scandal Work? The admissions scheme had two parts. The first involved college athletic departments admitting some children as athletes, even if they did not play a sport. Some of the college coaches were accused of taking bribes. The second involved testing centers inflating some students’ SAT and ACT scores or having some- one else take the tests for the students.147 Indicted college officials and parents will have their day in court, but affected universities have a difficult decision to make when it comes to students who were admitted as part of the scheme. The University of Southern California (USC) is one institution involved with the charges, and it is review- ing the status of students associated with the scandal. The school said on Twitter, “Following the review, we will take the proper action related to their status, up to revoking admission or expulsion.”148 USC has also placed holds on these students’ accounts, which restricts them from registering for classes or acquiring transcripts.149 Are There Innocent Bystanders? Evidence suggests that some of the students associ- ated with the scandal were innocent bystanders. William Singer, a college admissions consultant who ran the whole scheme, was recorded on a call say- ing that “most of the kids” did not know their scores were inflated after leaving the testing center. Fur- ther, some of the students who were falsely classi- fied as elite athletes did not know that their applications were doctored. One USC student, for example, confronted his parents about receiving e-mails regarding practices and team events for track and field: He was admitted to USC as a track and field athlete. The student, who never partici- pated in that sport, did not know his parents arranged his fraudulent admission.150 “Your heart goes out to these kids who in some ways seem like innocent pawns of their parents’ machinations,” says Amy Sepinwall, a University of Pennsylvania profes- sor of law and business ethics.151 What Should Universities Do? One solution is to investigate each student associated with the scandal. Students who are determined to have benefited from the scheme would be booted and those who are found to be innocent get to stay. How- ever, some of the cases are not that simple. According to Bloomberg, students often exaggerate and pad their resumes during the admissions cycle. So universi- ties will have to determine which of these particular cases warrant action. For example, Singer sometimes created whole athletic careers that didn’t exist. Such was the case for a student admitted to Stanford’s sail- ing team who had never sailed. For others, Singer advised parents to exaggerate their kids’ existing ath- letic accomplishments.152 The impacted universities have difficult decisions to make. They may come under harsh criticism if they don’t take action against coddled students of the rich and famous. Sadly, expulsion can ruin the lives of stu- dents whose only crime was having parents who cheated. Organizational Behavior: A Practical, Problem-Solving Approach 463Decision Making and Creativity CHAPTER 11 If You Led a University and Found Out That Some of Your Admitted Students Were Associated with the Admissions Scandal, What Would You Do? 1. Expel them whether or not they knew what their parents were doing. These students are the beneficiaries of an alleged crime and allowing them to stay enrolled sends a poor message to other students. 2. Only expel them if they were actively involved in the scheme. It would not be fair to ruin the life of a student who did not know what his or her parents were up to. 3. Force students involved in the scandal to re- apply, whether or not they knew what their par- ents had done. Expel them if they don’t meet the criteria for admissions based on their legitimate applications. 4. Invent other options and explain. Organizational Behavior: A Practical, Problem-Solving Approach LO 12-1 Understand the basic forms of power. LO 12-2 Understand how to empower yourself and others. LO 12-3 Describe and implement various influence tactics. LO 12-4 Differentiate and apply the main forms of organizational politics. LO 12-5 Determine how to implement effective impression management. LO 12-6 Describe the implications of power, influence, and politics for you and managers. After reading this chapter, you should be able to: Power, Influence, and Politics12 Ja n H av lic ek /J oh ny 87 /1 23 RF Organizational Behavior: A Practical, Problem-Solving Approach 465Power, Influence, and Politics CHAPTER 12 This chapter focuses on particular means for influencing others, and thus the concepts in this chapter are especially important group/team-level processes in the Organizing Framework for Understanding and Applying OB (see Figure 12.1). The reason for this bold assertion is that you are being influenced by and attempting to influence others every day of your life, especially at work. Thus, understanding and applying knowl- edge related to power, influence, empowerment, political tactics, and impression man- agement are extremely valuable to your success. You’ll see support for this claim in the Organizing Framework, where power and influence relate to most outcomes across all levels of OB. Many different person and situation factors are related to power and influence, but our primary focus is on understanding the power and influ- ence processes themselves and the numerous outcomes they affect. FIGURE 12.1 Organizing Framework for Understanding and Applying OB INPUTS PROCESSES OUTCOMES Person Factors • Personality • Skills and abilities • Values • Ethics Situation Factors • Relationship quality • Leadership Individual Level • Conflict and negotiation • Emotions • Perceptions • Motivation • Trust • Communication • Psychological empowerment Group/Team Level • Group/team dynamics • Conflict and negotiation • Decision making • Power, influence, and politics • Performance management • Leadership • Trust • Structural empowerment • Impression management Organizational Level • Human resource policies and practices • Leading and managing change and stress • Impression management Individual Level • Task performance • Work attitudes • Citizenship behavior/ counterproductive behavior • Turnover • Career outcomes • Stress Group/Team Level • Group/team performance • Group satisfaction • Group cohesion and conflict Organizational Level • Accounting/financial performance • Customer satisfaction • Reputation • Legal liability © 2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. Organizational Behavior: A Practical, Problem-Solving Approach 466 Make Meetings Work for You required, then consider sending an e-mail. Otherwise, invite peo- ple with the appropriate knowledge and responsibilities to con- tribute, and be sure they do. (See #3 above—assign and communicate roles and expectations for their contributions.)6 6. Set a time limit. Some experts suggest that meetings be limited to no more than 45 minutes. There are at least two benefits to this practice: (1) people typically schedule calendar items to be- gin on the hour, and a 45-minute limit gives them time to get to and prepare for their next appointment; and (2) tasks expand to fill the time you give them, and allowing only 45 minutes will help keep you disciplined and on task.7 7. Match complaints with solutions. Establish the expectation that someone who raises an issue or complaint must also provide a potential solution. 8. Control the conversation. Some people ramble, others complain without offering solutions, and still others wander off on tan- gents. You don’t want to be rude, but you must control the meet- ing. To a rambler, say: “Interesting comment, Taylor. Let’s talk about it after the meeting.” Complainer: “Robin, we’ve heard your issue. What solution do you recommend?” Tangents: “Sylvia, you’ve taken the discussion off the agenda. Is there something we’re missing or something bothering you?”8 9. Be concise. Tell everyone you expect comments that are con- cise and on topic, then reinforce this by modeling the same behavior. 10. Stick to a schedule. Start on time and end on time. 11. Ask for input. You can use your knowledge of feedback and ask those who attend your meetings, “What two or three things made the meeting effective?” and “What are two or three ways we can make future meetings more effective?” Greg Caimi, a partner at Bain Consulting and author of the firm’s time management study, said, “If time really was money, and accounted for in the same way, many companies would be running huge deficits.”9 Treat your time, and that of others, like money and don’t run deficits! As one business writer stated: “If you had to identify, in one word, the reason why the human race has not achieved, and never will achieve, its full potential, that word would be ‘meetings.’ ”1 This cynical and humorous quote resonates with employees everywhere. You’ve prob- ably never heard anyone plead for more meetings. One estimate is the average worker spends 21 percent of their work hours in meet- ings and 25 percent of that is wasted. Managers suffer too. A study conducted by the Society of Human Resource Management found 71 percent of managers said meetings were generally unproductive, and 65 percent claimed meetings kept them from productive work.2 Yet despite the pain, we know people need to meet, and when man- aged effectively, groups and teams of people can accomplish great things. We therefore give you practical tools to get the most out of your meetings, your colleagues, and your time. Doing so will not only help combat boredom and frustration, but also increase your influ- ence with others, and in turn improve your performance and that of your colleagues. Common Complaints A survey by Accountemps revealed the following most common com- plaints about meetings, ranked by the percentage of respondents who indicated each: 0% Attendees unprepared3 Attendees distracted (using their phones or other devices) Too much or not enough time Unnecessary (could have been communicated via e-mail) Starts or ends late 20% 40% 60% 80% 100% Making all of this worse is the fact that managers and others who initi- ate meetings think they are far, far more productive than those who attend them, 79 percent versus 57 percent, respectively. How to Improve Meetings 1. Make and distribute an agenda. Do more than simply state pur- pose, day, time, and location. Tell participants specifically what they need to do to prepare. 2. Set and communicate a goal for the meeting. Explain in advance what you want to accomplish by the time you conclude the meeting, such as a decision or plan of action. Tell participants your goal again at the beginning of the meeting. 3. Assign responsibilities. Assign roles and responsibilities for the meeting itself, and then assign follow-up or next steps.4 4. Limit the participants. Some research concludes no more than eight people should be invited, and that when a meeting exceeds this number more people are likely to check out and free-load.5 5. Choose carefully. Too often only one, two, or a few people domi- nate meetings. If you or one other person is simply conveying information to the others, with no genuine interaction or decisions What’s Ahead in This Chapter The purpose of this chapter is to give you a tool kit for navi- gating the eternal and ubiquitous world of influence in orga- nizational life. We explore the interrelated topics of power, empowerment, influence and persuasion, organizational poli- tics, and impression management. These topics are in the group and team section of the book because they are about influencing others—individuals and groups. They are impor- tant group-level processes in the Organizing Framework for Applying and Understanding OB. The way you influence oth- ers affects their response and your effectiveness. Appropri- ate, skilled, and ethical use of the knowledge in this chapter will not only help set you apart from your peers, but also close the gap between you and those with more experience and bigger titles. Winning at Work Organizational Behavior: A Practical, Problem-Solving Approach Power, Influence, and Politics CHAPTER 12 467 THE BIGGER PICTURE You try to influence people all day, every day of your life, sometimes with great effort and other times without even being aware. And others are doing the same to you. To influence people, you draw on various types of power depending on the situation. You might simply tell a subordinate to do what you want, or you might inspire a coworker with your charismatic personality and persuasive prowess. The way you choose to influence others, and the types of power you use, can have important implications for the responses you get. We will help you gain and apply different forms of power to boost your effectiveness at managing out- comes across the levels of the Organizing Framework for OB. 12.1 POWER AND ITS BASIC FORMS Power is the discretion and the means to enforce your will over others.10 Given this definition power is all about influencing others. The more influence you have, the more powerful you are, and vice versa. The well-known phrase—“power tends to corrupt, and absolute power corrupts absolutely”—is undoubtedly true in some instances. However, like it or not, power is a fact of organizational life and you are wise to understand and use it effectively and ethically. The following quote captures the idea well: Power must be used because managers must influence those they depend on. Power also is crucial in the development of managers’ self-confidence and willing- ness to support subordinates. From this perspective, power should be accepted as a natural part of any organization. Managers should recognize and develop their own power to coordinate and support the work of subordinates; it is powerlessness, not power, that undermines organizational effectiveness.11 To make our discussion of power more practical, we distinguish five common forms or bases of power. Five Bases of Power The five common bases of power are: legitimate, reward, coercive, expert, and referent. (See Figure 12.2.) Each represents a different approach to influencing others and has advantages and drawbacks. Let’s learn more. Legitimate Power Legitimate power is what most people think of as authority and is anchored to a formal position or job. Thus, manag- ers who obtain compliance primarily by using their formal author- ity to make decisions have legitimate power. Legitimate power may be used positively or negatively. • Positive legitimate power focuses constructively on job perfor- mance. The CBS board of directors utilized this form of power when it ousted CEO Les Moonves and refused to pay his $120 million severance package. The board claimed Mr. Moonves Understand the basic forms of power. LO 12-1 FIGURE 12.2 The Five Bases of Power Legitimate Reward Coercive Referent Expert Organizational Behavior: A Practical, Problem-Solving Approach 468 PART 2 Groups lied and attempted to cover up multiple allegations related to sexual misconduct, thus violating company policies and his contractual obligations.12 The board asserted its legitimate power by punishing the CEO, which also sent a strong signal to the rest of the organization that policies are enforced consistently—even at the top. • Negative legitimate power, in contrast, tends to be threatening and demeaning to those being influenced. Sometimes this is simply an exercise in building the power holder’s ego, such as the many U.S. politicians who have used their legislative position power to name various “monuments” after themselves. While a road here and a library there are quite common, the late Robert Byrd from West Virginia had more than 30 monuments named after him.13 Citizens of Florida are considering banning such practices. They are seeking to amend the state’s constitution and prevent city, county, and state officials from naming taxpayer-funded facilities after elected officials.14 Recent ethics research found that powerful chief financial officers (CFOs), when compared to those who are less powerful, were more likely to negotiate short-term compensation incen- tives and manage company earnings in order to increase their pay and receive the funds sooner, rather than vesting over longer periods of time.15 For instance, they are more likely to arrange for cash and stock bonuses to be paid over three rather than five years. If you recall the time value of money from finance, you’d rather have your entire annual salary paid today instead of divided up with some paid each month. The idea is you could invest that large sum and earn additional income over and above the value of your salary. CFOs certainly under- stand this and may tend to use their legitimate power for their personal benefit. Can you think of your own examples of both positive and negative legitimate power? Reward Power Individuals or organizations have reward power if they can obtain compliance by promising or granting rewards valued by the other party. As you learned in Chapter 6, pay-for-performance plans and positive reinforcement practices rely on reward power. The relationship between Barnes & Noble and Starbucks, along with other alliances, is an excellent example of reward power. Books and coffee are a wonderful combination for many people, and this partnership enables one party to help combat the extinction of brick and mortar bookstores, while at the same time providing books to cus- tomers without having to invest in inventory and manage the operation.16 Coercive Power The ability to make threats of punishment and deliver actual punishment reflects coercive power. The Federal Trade Commission (FTC) filed a lawsuit against DeVry University, one of the largest for-profit colleges in the United States. The FTC charged the company falsely claimed 90 percent of its graduates gained employ- ment within six months of graduation and earned 15 percent higher salaries a year after graduation than graduates of all other colleges.17 Expert Power Valued knowledge or information gives an individual expert power over those who need such knowledge or information. One way the power of supervisors is enhanced stems from knowing about work assignments and pay raises before their employ- ees do. Perhaps the most common source of expert power for employees more generally is that derived from past experience and performance. Referent Power Referent power is derived from personal characteristics and social relationships that effectively gain others’ compliance. Charisma is commonly associated with referent power, but you do not need to be the life of the party to possess such power. In Asian cultures, for instance, characteristics such as age, gender, or family name are sources of social status and referent power. One often overlooked and underestimated source of referent power is your network of relationships. Assume a coworker calls and asks whether you can help her with a project. You tell her you don’t have the knowledge or skill yourself, but that Susan, a member of another department whom you happen to know, can provide the help your coworker requires. You make the introduction. Because you introduced your coworker to someone who helped her, you have referent power by virtue of your relationships. Organizational Behavior: A Practical, Problem-Solving Approach 469Power, Influence, and Politics CHAPTER 12 Referent power drives the success of a number of marketing schemes, such as those used by Tupperware and Mary Kay. These companies and others use independent contrac- tors to throw home parties to display and sell goods to friends and families. More gener- ally, referral programs are examples of referent power. Airbnb provides dollar credits for referring friends who then use its services, and Marriott Reward members can earn up to 50,000 points when up to five referrals book with one of the hotels in the same calendar year. Referrals pay in the beauty and cosmetics industry too. Ulta Beauty awards $15 toward your next salon treatment when you gift $15 to someone else.18 Reputation is another aspect of referent power. Many companies hire new CEOs in part to reap the benefits of the executive’s reputation. Mattel, the toy maker, has truly put this to the test by hiring three CEOs since 2015. Ynon Kreiz was the latest expected to reverse the continuing decline in company revenues over the past several years. Amazon and the collapse of Toys-R-Us and other brick-and-mortar retailers have made things especially difficult for toy companies. As with other CEO replacements, Mattel is hoping the change and Kreiz’s reputa- tion in television production will woo investors by connecting the company’s products with movies featuring its products, such as a movie including Barbie, its iconic doll.19 Referent power is also a major means for converting your social media connections and reputation into influence—and money. The following Applying OB box illustrates how “influencers” do just this via Instagram. Mattel partnered with Warner Bros. to produce a movie leveraging the iconic Barbie doll to sell other products and promote positivity and confidence for girls and young women. Margot Robbie was cast to play Barbie. (Left): Keith Homan/Shutterstock; (right): Samir Hussein/WireImage/Getty Images Applying OB Social media has come a long way in a few short years, so much so that “social media influencer” is a genuine career path with many earning annual incomes similar to more conventional professions. For instance, micro- influencers (up to 50,000 followers) can earn a few thousand dollars per post, and those with up to a million followers might earn $10,000 per post.20 There are the elite influencers on YouTube and Instagram who make many millions of dollars a year. Whether you are micro or elite,21 the fundamental Follow Me—All the Way to the Bank Organizational Behavior: A Practical, Problem-Solving Approach 470 PART 2 Groups Now that you’ve learned about the five bases of power, complete Self-Assessment 12.1 to identify which bases you prefer to use. Answering the associated questions will help you understand how the various forms of power can both help and hurt you when trying to influence others. reasons for success are the same—referent and expert power. Referent power for social media influencers is reflected in influencers’ reputations, often their celebrity status in sports or movies. People like celebrities, they want to emulate them, and sometimes they identify with a character or the team on which one plays. These forms of conventional celebrity result in name recogni- tion and attention and thus followers on social media. Yet other influencers’ power is derived from their expertise or relevance to particular areas of interest for followers, the largest of which are fashion, fitness, and gaming. Some of the highest paid influencers are gamers—such as DanTDM, VanossGaming, and PewDiePie—who reveal their tricks of the trade on various games on YouTube and earn over $10 million per year.22 Selena Gomez, the most-followed person on Insta- gram, reportedly gets paid $550,000 per sponsored post, while Kylie Jenner earns $400,000, and Cristiano Ronaldo adds to his goal scoring fortune by earning about the same as Jenner.23 Just like other types of relationships, social media influencers rely on their authenticity to build follower trust and commitment. Followers come to rely on the influencers for sound, honest, and valuable advice and recommendations, which is what keeps them coming back and buying!24 What Kind of Power Do I Prefer? Please be prepared to answer these questions if your instructor has assigned Self- Assessment 12.1 in Connect. 1. Which of the five bases of power do you prefer to use? 2. Describe how your preferred form of power helps you at school, at work, and socially. 3. Which of the five bases is your least preferred? What are the implications for you at school, at work, and socially? 4. What two specific things can you do to increase your expert power? And what two things to increase your referent power? Adapted from T. R. Hinkin and C. A. Schriesheim, “Development and Application of New Scales to Measure the French and Raven (1959) Bases of Social Power,” Journal of Applied Psychology, 1989, 567, American Psychological Association. SELF-ASSESSMENT 12.1 CAREER READINESS Position vs. Personal Power The first three forms of power—legitimate, reward, and coercive—are often referred to as position power because the source of influence is associated with a particular job or position within an organization. Managers, for instance, have legitimate, reward, and coercive power because they control your pay, work assignments, hiring and firing, and evaluations. In contrast, expert and referent are forms of personal power, which you possess independent of your position or job. (See Figure 12.3.) These two general sources of power frequently collide when you are promoted and must manage the people who just yesterday were your peers. The following Applying OB box offers good advice. Organizational Behavior: A Practical, Problem-Solving Approach 471Power, Influence, and Politics CHAPTER 12 FIGURE 12.3 Bases of Power: Position and Personal Referent ExpertLegitimate Reward Coercive Personal Power Position Power Applying OB If you’ve been promoted to manage your group, you suddenly have more legitimate power. But to be an effective manager you need to exercise that power carefully, in a way that doesn’t alienate but instead motivates your former peers. What do Sam Hazen at HCA Healthcare25 and Tony Lowings of Kentucky Fried Chicken26 have in common? Certainly not their companies’ products and services. Both were promoted within their companies to the role of CEO and likely confronted the challenges of becoming everyone’s boss, including other execu- tives who had been their peers. Such transitions are often difficult for the promoted and those passed over. Of course, thousands if not millions of workers are pro- moted every day, and they too face challenges similar to those of executives. The following advice can help you influence former peers who are now subordinates, while at the same time making the transition easier on you and them. 1. It’s awkward . . . admit it. Be honest and don’t act as if it is no big deal or it isn’t awkward. Be vulner- able, ask for others’ help and input, rather than act- ing as though all the necessary knowledge and answers came along with your new title. 2. Communicate boundaries. Be sure to consider and communicate boundaries. You need to deter- mine what you can talk about and share, and what you can’t or would rather not. Your former peers may be able to continue to confide in you as before, but not always. And it is very likely there will be things about your new role you cannot and should not share with them. Figure it out and tell them.27 3. Meet one-on-one. Meet with all your new direct reports, especially those who were your peers and are your friends. Doing this regularly can not only help you set goals and communicate expectations, but will also provide opportunities for them to learn what you think of them and their work, now that you’re their manager.28 4. Don’t show off. It might be tempting to strengthen your leadership role with an aggressive, dominat- ing style, overseeing every detail; however, that approach can generate resentment. 5. Do accept responsibility. Don’t try to remain bud- dies if it will undermine your ability to get the job done. Collaborate when it’s the best way to accom- plish goals, but not to save a friendship. 6. Do your homework. Work with your new supervi- sor to define goals for yourself and your team. Strengthen your network of mentors to improve your management skills. Meet with your staff to go over your vision and expectations. Setting a direc- tion for the team enhances your credibility (via expert power). 7. Pay attention to team members’ concerns. Show them how meeting the group’s goals will put them on track toward meeting their own needs.29 From Teammate to Manager: Taking Charge Organizational Behavior: A Practical, Problem-Solving Approach 472 PART 2 Groups Power, but for What Purpose? Asserting power is a necessary and sometimes even a subconscious activity in our lives. However, we often overlook the potential outcomes. People tend to have three primary reactions to our attempts to manage and otherwise influence them—resistance, compli- ance, and commitment. • Resistance. You know what resistance is, but have you ever thought of the many forms and degrees? People can simply be indifferent, be passive-aggressive or actively resist. They can also purposefully undermine or even sabotage your efforts. The degree and form of resistance thus matter. • Compliance. Those who comply do only what is expected, nothing more. They exert no extra effort and provide no extra input. • Commitment. Those who are committed believe in the cause and often go above and beyond to ensure its success. These outcomes are obviously different, and the differences matter! One factor that certainly can affect others’ responses is how ethically or responsibly you utilize any form of power. Using Power Ethically and Effectively People who do not use their power responsi- bly risk losing it. This has been shown time and again in political uprisings and the ouster of government leaders, as well as in the persistent waves of scandals in business and the result- ing downfall of executives. For instance, as of late 2018 the #MeToo movement had toppled over 200 men in positions of power due to allegations of sexual assault and harassment.30 Research is mounting that shows pro-social employees who ascend to leadership posi- tions, and use their position to benefit the group instead of themselves, outperform pro- self individuals (those who become leaders and use the position to benefit themselves). These same pro-social leaders also were more effective at fostering contributions from their teams.31 As a senior level commander, General Wesley Clark needed to influence people all the time. Of course he had considerable position power as a general, which in many instances enabled him to get others to comply with his wishes and orders. However, he also knew that sometimes he needed others to actually buy-in and commit. He therefore chose the bases of power accordingly to be more effective. John Thys/AFP/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 473Power, Influence, and Politics CHAPTER 12 For managers who want to avoid the potential pitfalls and wield power responsibly, a step in the right direction is understanding the difference between commitment and mere compliance. Responsible managers strive to use power for the good of others, rather than simply for personal gain. Retired General Wesley Clark, former NATO commander, put it this way: Sometimes threatening works, but it usually brings with it adverse consequences—like resentment and a desire to get even in some way. People don’t like to be reminded that they are inferior in power or status. And so, in business, it is important to motivate through the power of shared goals, shared objectives, and shared standards.32 As Clark describes, sometimes you only need someone to comply, but at other times you need genuine commitment. Choose the types of power you use accordingly. How Do the Five Bases of Power Relate to Commitment and Compliance? Research, practice, and perhaps your own experiences reveal that, as shown in Figure 12.4: • Reward, coercive, and negative legitimate power tend to produce compliance (and sometimes resistance). • Positive legitimate power, expert power, and referent power tend to foster commitment. Once again, commitment is superior to compliance because it is driven by internal or intrinsic motivation. Committed employees tend to be self-starters who do not require close supervision. Intrinsically motivated self-starters are success factors in today’s flatter, team-oriented organizations. In contrast, employees who merely comply require frequent jolts of power from the boss to keep them going. Although most of our discussion thus far has focused on how an individual’s power influences other individuals, the same concepts apply between organizations. For instance, research shows that organizations can influence their suppliers and their suppliers’ suppli- ers. Companies that engage in socially responsible management practices, such as those related to fair labor (reasonable hours and employee rights) and fair trade (sustainable farming and packaging), can most effectively get members of their supply chain to adopt these practices if they share their own expertise, knowledge, and training. Trying to coerce, reward, and require (legitimate) suppliers to adopt such practices is likely to result in resistance and wasted time and efforts.33 FIGURE 12.4 Bases of Power: Commitment vs. Compliance Tend to Foster Commitment Tend to Produce Compliance (or Resistance) Reward Coercive Referent ExpertLegitimate negative Legitimate positive Organizational Behavior: A Practical, Problem-Solving Approach 474 PART 2 Groups Bases of Power and Outcomes in the Organizing Framework Research gives us some insights into how different bases of power affect important outcomes in the Orga- nizing Framework, such as job performance, job satisfaction, and turnover. These relation- ships are illustrated in Figure 12.5. • Expert and referent power have a generally positive effect. • Reward and legitimate power have a slightly positive effect. • Coercive power has a slightly negative effect. Now that you have a clearer sense of what power is and how it operates, let’s learn about how sharing power can actually increase your own power. FIGURE 12.5 Bases of Power and Effectiveness of Outcomes Legitimate Reward Coercive Slightly Negative E�ect Slightly Positive E�ect Generally Positive E�ect Referent Expert Organizational Behavior: A Practical, Problem-Solving Approach 475Power, Influence, and Politics CHAPTER 12 THE BIGGER PICTURE How much do you like being told what to do? Chances are you didn’t like it as a kid and like it even less as an adult at work. Thankfully, many managers and organizations are looking to employees to solve problems and make decisions, instead of always telling them what to do and how to do it. This increased participation and sharing of authority is the result of empow- erment. We explore different forms of empowerment (structural and psychological), various degrees of empowerment, and ways to foster it in individuals, teams, and organizations. Understand how to empower yourself and others. LO 12-2 12.2 POWER SHARING AND EMPOWERMENT Empowerment consists of efforts to “enhance employee performance, well-being, and positive attitudes.”34 Empowerment has been shown to favorably influence many outcomes in the Organizing Framework, such as job satisfaction, organizational commit- ment, performance, turnover, and employee stress.35 In addition to these benefits, empowerment is becoming a necessity. Time-manage- ment research done by two researchers at Harvard showed the CEOs in their study spent nearly 25 percent of their time on e-mail!36 This means no individual, executive or not, can accomplish all the necessary tasks alone. You must share the load. To help in this effort, research and practice related to empowerment have focused on two general forms— structural and psychological. Structural Empowerment Structural empowerment transfers authority and responsibilities from manage- ment to employees. Some popular ways to do this are via the job design and job char- acteristics forms of motivation. Managers and their employers can boost employee empowerment by changing policies, procedures, job responsibilities, and team designs. Any of these that increase the effectiveness of employee decision making are likely also to increase their performance, well-being, and job-related attitudes. To better under- stand and apply this knowledge about empowerment, it is necessary to think about the issue correctly. Thinking the Right Way about Empowerment Effective empowerment does not include giving decision-making authority to just any employee in every situation. That would be both foolish and irresponsible, and it would not be empowerment. Instead, decision-making authority and other broader responsibilities should be shared only with those who are competent to do what is necessary. There are two pitfalls to avoid: 1. Empowerment is not a zero-sum game in which one person’s gain is another’s loss. Sharing power via empowerment is a means of increasing your own power. Think of it this way: you cannot be everywhere, all the time, with all the answers. But if you allow competent others to act, then you’ve increased your reach and your influence. This means authoritarian managers who view employee empowerment as a threat to their own power are missing the point because of their win–lose thinking. 2. Empowerment is a matter of degree, not an either–or proposition. Figure 12.6 illustrates how power can be shifted to the hands of nonmanagers step by step. The Organizational Behavior: A Practical, Problem-Solving Approach 476 PART 2 Groups overriding goal is to increase productivity and competitiveness in organizations. Each step in this evolution increases the power of organizational contributors who tradition- ally were told what, when, and how to do things. Sharing Power to Increase Your Power and Performance A common element of empowerment is pushing decision-making authority to lower levels and is illustrated in Figure 12.6. At the level of least empowerment, managers and leaders practice dom- ination, characterized as authoritarian power wherein they make all of the decisions and then hand them down to employees. Next is consultation which occurs when employees are asked for their input, but managers ultimately make the decisions them- selves. Participation takes place when managers and employees jointly identify prob- lems and solutions—power is shared more or less evenly. Finally, delegation occurs when managers turn over decision-making authority to employees and remove them- selves from the process altogether. It is important to note that one level of empower- ment is not necessarily better than another. Like many other things related to OB, the degree of power sharing should match the needs of the situation and the capabilities of the individuals or teams involved.37 Homewood Suites, part of Hilton Hotels, offers a 100 percent money-back guaran- tee if a guest isn’t satisfied. Any employee from housekeeper to manager can make good on that guarantee—no manager’s approval is needed. And the guest doesn’t have to go through a chain of command to have a complaint resolved. “The return we get on every dollar refunded is 20 to 1,” based on repeat business and referrals from those refunded guests, said former executive Frank Saitta. The return on engaged employees “is much higher.”38 Not to be outdone, Ritz Carlton allows employees up to $2,000 to remedy a customer related incident. That’s right, employees don’t need approval and there is no limit on the number of customers a given employee can assist with $2,000 awards, which can include gifts, upgrades, and free nights. Wholesale club standout Costco is legendary for its return policy. Customers don’t need a receipt and there is no time limit. Employees have the latitude to accept items, make exchanges, or do whatever else they deem necessary to resolve customer issues.39 FIGURE 12.6 The Evolution of Power from Domination to Delegation D eg re e of E m po w er m en t Management Style DominationNone High Consultation Participation Delegation Authoritarian power Manager/leader imposes decisions. Influence sharing Manager/leader consults followers when making decisions. Power sharing Manager/leader and followers jointly make decisions. Power distribution Followers granted authority to make decisions. Organizational Behavior: A Practical, Problem-Solving Approach 477Power, Influence, and Politics CHAPTER 12 With your understanding of structural empowerment in hand, let’s move on and learn about psychological empowerment. Psychological Empowerment Psychological empowerment occurs when we feel a sense of: Meaning—Belief that your work values and goals align with those of your manager, team, or employer. Competence—Personal evaluation of your ability to do the job. Self-determination—Sense that you have control over your work and its outcomes. Impact at work—Feeling your efforts make a difference and affect the organization.40 How Do Structural and Psychological Empowerment Differ? While structural empowerment draws on job design and characteristics, psychological empowerment is related to self-efficacy and intrinsic motivation.41 “It is less concerned with the actual tran- sition of authority and responsibility but instead focuses on employees’ perceptions or cognitive states regarding empowerment.”42 Put simply, if you feel your work has meaning, you are competent, and you have some control (self-determination), then you are very likely to feel highly efficacious and perform at a high level. It therefore is necessary to do more than simply delegate responsibilities if you wish to psychologically empower others. For instance, assume you’re a janitor and you clean sinks and do it very well. Would you feel empowered if your manager said, “Because you clean the sinks so well, now I’d like you to clean the toilets too.” Empowered? No. Where is the sense of meaning or impact? This is simply delegating more work to you (similar to simple job enlargement in Chapter 5). Put plainly, don’t feel too confident you’re empowering others if they don’t actually feel empowered. Psychological Empowerment at the Team and Organizational Levels Both research and practice show the same four elements that empower individuals—meaning, competence, self-determination, and impact—also foster psychological empowerment in teams.43 Moreover, the benefits to individuals also apply to teams and organizations— higher performance and satisfaction44 and more positive emotions within the team.45 Toyota has successfully empowered teams for decades. In the company’s manufac- turing facilities, for example, teams are expected to identify and solve problems as they As part of their efforts to compete for guests’ business, Hilton and Ritz-Carlton both provide consider- able levels of empowerment for employees to enable them to satisfy guests as they see appropriate. No manager approval needed. (Left): Lester Balajadia/Shutterstock; (right): Max_Ryazanov/Shutterstock Organizational Behavior: A Practical, Problem-Solving Approach 478 PART 2 Groups occur and not simply pass them along to management to fix. Employees are further encouraged to make efficiency and quality- improvement suggestions to management. These are typically reviewed by management, but the problems are often assigned to employee teams charged with identifying and implementing solutions. Toyota’s practices have been so effective that they have been adopted not only by other auto companies, but also by manufacturers in many other industries the world over. Since we’ve explored different forms of empowerment and its various degrees and levels, let’s conclude this section with a discus- sion of how to increase or develop empower- ment in individuals, teams, and organizations. How to Empower Individuals, Teams, and Organizations Empowering others is not simple, but what makes it easier is the same levers operate across all levels of an organization. Figure 12.7 illustrates some key inputs to empowering others and their resulting outcomes. Notice how many are elements in the Organizing Framework. Empowerment Inputs Structural empowerment is an input to psychological empow- erment. This makes sense because job characteristics, policies, and practices can either facilitate or impede feelings of empowerment for individuals and teams. In one case, hos- pital policies and practices were changed (structural empowerment) which helped nurse leaders find greater meaning in their jobs, provided more participative decision making, Simply giving employees more responsibilities or tasks does not mean they will feel empowered. Would you feel empow- ered if your manager allowed you to clean toilets because you’ve done such an excellent job of cleaning sinks? BlueSkyImage/Shutterstock FIGURE 12.7 Inputs and Outcomes of Psychological Empowerment Across Organizational Levels Inputs Empowerment Outcomes • Structural empowerment • Individual di erences (core self-evaluations, psychological capital, and need for achievement) • Job characteristics • Managerial support • Leadership • Organizational support (access to resources from other teams) • Performance • Organizational citizenship behavior • Job satisfaction • Turnover intentions • Stress Psychological Empowerment Team Level Organization LevelIndividual Level SOURCE: Maynard, M. Travis, Lucy L. Gilson, and John E. Mathieu. “Empowerment—Fad or Fab? A Multilevel Review of the Past Two Decades of Research.” Journal of Management 38, no. 4 (2012): 1231–1281. https://doi.org/10.1177/0149206312438773. Organizational Behavior: A Practical, Problem-Solving Approach 479Power, Influence, and Politics CHAPTER 12 and reduced bureaucracy. These changes in turn increased the nurses’ feelings of psycho- logical empowerment and their actual empowering behaviors.46 Also helpful to enhancing empowerment is the extent to which employees have positive self-evaluations, such as core self-evaluations and positive psychological capital (Chapters 3 and 7, respectively). Your knowledge of motivation also is helpful to understanding and fostering empowerment across levels of the Organizing Framework. Job characteristics, for instance, that generate intrinsic motivational states (sense of meaningfulness and responsibility) clearly can help, along with empowering leadership (Chapter 13). Finally, if teams have access to resources such as the people and ideas in other teams, then they too are more likely to be empowered. Empowerment Outputs Like many of the topics covered in this book, empowerment is valuable because it positively influences performance for individuals, teams, and organi- zations. But the benefits extend beyond performance and include citizenship behaviors, job satisfaction, turnover intentions, and creativity. Empowerment also reduces stress for individuals and teams.47 To help your empowerment efforts, we turn our attention in the next section to particular tools for influencing others. But before moving on, apply your new knowledge in the following Problem-Solving Application. Empowering a Team of Your Peers48 Jennifer was a highly regarded and top-performing marketing associate at an international pharmaceu- tical company. Due to her exceptional performance and other skills and abilities, she was promoted to manager. This transition meant she was now the supervisor of her former peers. Her first assignment was a new product to be launched in a foreign market. To formulate and ulti- mately execute a successful product launch, Jenni- fer and her team needed to gather market data, learn and share information about the competition, analyze financial details, coordinate with other prod- uct managers, hire and work with an advertising agency, and secure regulatory approval. Jennifer had personal experience and success doing most of these things, but now she had to do them on a much larger scale and in the context of a team she managed. As a high performer, she was determined to get all the details right. Therefore, when any element was late, done poorly, or just not up to her expectations, she stepped in and did it herself. Her work life quickly expanded to 15-hour days and weekends. Jennifer’s involvement in so many aspects of the product launch prevented her from mentoring and developing her team members in the ways they clearly needed. They seemed to lack a sense of accountability, knowing that if their work wasn’t up to speed the boss would step in and complete or correct it. Jennifer noticed this and feared her team was not learning to produce high-quality work on its own. Not only would this hurt the current project, but other departments and teams would come to know it and be less willing to work with them in the future, damag- ing Jennifer’s own performance and that of her team. Jennifer was extremely reluctant to go to her boss for help, because she had been told she’d earned her new position, and it was a test for another role with still greater responsibility. Assuming you are Jennifer, what would you do? Problem-Solving Application Apply the 3-Step Problem Solving Approach Step 1: Define the problem in the case. Step 2: Identify the potential causes. Step 3: Recommend what you would do if you were Jennifer. Organizational Behavior: A Practical, Problem-Solving Approach 480 PART 2 Groups In a perfect world other people’s interests would align with your own and everyone would move forward as one. However, the world isn’t perfect, and we often find a rather messy situation in which self-interests override the collective mission of the department or organization. Personal and hidden agendas are pursued, political coalitions are formed, false impressions are made, and people end up working against rather than with each other. Managers, and you, need to guide diverse individuals, all with their own interests, to pursue common objectives. At stake in this tug-of-war between individual and collective interests is effectiveness at the personal, group, and organizational levels. Your tools for managing such challenges are influence tactics. Common Influence Tactics Influence tactics are conscious efforts to affect and change behaviors in others. The nine most common ways people try to influence their bosses, coworkers, and subordi- nates are listed in Table 12.1, beginning with the most frequently used. Describe and implement various influence tactics. LO 12-3 THE BIGGER PICTURE How do you get others to do as you wish? Do you attempt to dazzle them with your knowl- edge and logical arguments? Or do you prefer a less direct approach, such as promising to return the favor? Whatever approach you use, the crux of the matter is social influence. Many of our interpersonal interactions are attempts to influence others, including parents, bosses, coworkers, professors, friends, spouses, and children. Let’s start sharpening your influence skills by exploring influence tactics and their effective and ethical application. 12.3 EFFECTIVELY INFLUENCING OTHERS INFLUENCE TACTIC DESCRIPTION 1. Rational persuasion Trying to convince someone with reason, logic, or facts. 2. Inspirational appeals Trying to build enthusiasm by appealing to others’ emotions, ideals, or values. 3. Consultation Getting others to provide insights, experience or information you can use in planning and making decisions. 4. Ingratiation Getting someone in a good mood prior to making a request. Being friendly and helpful and using praise, flattery, or humor. A particular form of ingratiation is “brownnosing.” 5. Personal appeals Referring to friendship and loyalty when making a request. 6. Exchange Making explicit or implied promises and trading favors. 7. Coalition tactics Getting others to support your efforts to persuade someone. 8. Pressure Demanding compliance or using intimidation or threats. 9. Legitimating tactics Basing a request on authority or right, organizational rules or policies, or explicit/ implied support from superiors. TABLE 12.1 9 Common Influence Tactics SOURCE: Plouffe, Christopher R., Willy Bolander, Joseph A. Cote, and Bryan Hochstein. “Does the Customer Matter Most? Exploring Strategic Frontline Employees’ Influence of Customers, the Internal Business Team, and External Business Partners.” Journal of Marketing 80, no. 1 (January 2016): 106–123. https://doi.org/ 10.1509/jm.14.0192. Organizational Behavior: A Practical, Problem-Solving Approach 481Power, Influence, and Politics CHAPTER 12 These are considered generic influence tactics because they can be used in all directions—up (your boss), down (your subordinates), and sideways (your peers). Research has shown this ranking to be fairly consistent regardless of direction, which means you are likely to attempt to influence everyone the same way. And more gener- ally, it means rational persuasion is the most common tactic we employ and encounter. Actress Claire Foy, who portrayed Queen Elizabeth in the first two seasons of The Crown, was effectively inf luential when she protested about the difference in pay between her and the male counterpart in the show. She said, “I’d been working on that show for two years . . . (and) loved everybody on it. And then I realized, there’s been a big, fat, dirty secret that nobody’s ever talked about.” She shared that she felt the need to be vocal about the pay gap for the sake of her fellow actresses. “But then there was also that thing [of being] an inadvertent spokesperson . . . Why did it have to be me? I could have said nothing. And I think everyone would have preferred that. But I thought, if I do that, I will be cheating myself and all the other women I know.”49 It worked! Foy’s pay was adjusted to match that of her male co-star (Matt Smith), and Netflix, the show’s creator, subsequently reviewed and closed similar types of pay disparities in other shows.50 Hard vs. Soft Tactics Some refer to the first five influence tactics—rational persuasion, inspirational appeals, consultation, ingratiation, and personal appeals—as “soft” tactics because they are friendlier than, and not as coercive as, the last four tactics— exchange, coalition, pressure, and legitimating tactics, which are “hard” tactics because they exert more overt pressure. Which Do I Use Most? Least? When you read the list of tactics, each probably means something to you. Which do you most commonly use? Knowing the answer can help you better choose the appropriate tactic for any given situation and thus increase the chance of achieving your desired outcome. The next step to realizing these benefits is to complete Self-Assessment 12.2. Be sure to answer the associated questions to increase the value of your knowledge. Claire Foy used personal power and soft tactics to close the pay gap between her and her male counterpart, Matt Smith, on the Netflix blockbuster, The Crown. This contrasts with her character, the Queen of England, who in real life has varying degrees of position power and the ability to use hard tactics, along with those used by Foy. Pictorial Press Ltd/Alamy Stock Photo Organizational Behavior: A Practical, Problem-Solving Approach 482 PART 2 Groups Some organizations routinely, if not masterfully, apply the same tactics as individu- als. The following OB in Action box illustrates how Amazon obtains tax and other concessions from city and state governments in exchange for locating its facilities within their borders. Which Influence Tactics Do I Use? Please be prepared to answer these questions if your instructor has assigned Self-Assessment 12.2 in Connect. 1. Is your rational persuasion score the highest? Regardless, give some specific examples of ways you use this tactic. 2. Which tactic is your least preferred (lowest score)? Provide examples of situations of when and how you may use this tactic. SELF-ASSESSMENT 12.2 CAREER READINESS Amazon made headlines in early 2019 when it backed out of plans to build a second headquarters in New York City. NYC was a finalist in a field of many cities and states that engaged in an intense courtship to lure Amazon. Like others, the city offered billions of dollars of tax incentives in exchange for the company employing thousands of workers and the associated economic benefits, such as real estate development and sale, retail sales and taxes, along with employees’ payroll and income taxes. Although many legislators, business people, and others saw the concessions as justifiable and a vic- tory, still others objected. The dissenters protested that rich subsidies should not be given to the world- dominating Amazon. Their rationale: The company is extremely successful and can pay its own way. The company has a history of extracting conces- sions from city and state governments in exchange for the perceived benefits of locating Amazon facili- ties within their borders. Some estimates put the fig- ure at nearly $2.5 billion, and they are tough or even ruthless in the process. For instance, the company closed its only Texas warehouse when the state pressured the company to pay over $250 million dollars in back taxes. Texas ultimately ended its pur- suit of the taxes in return for more warehouses. In South Carolina, Amazon threatened to halt hiring unless it was given generous tax exemptions; the state eventually went Amazon’s way.51 Such tactics and exchanges are nothing new and not unique to Amazon. Companies and gov- ernments at all levels have been doing such deals for ages, even in New York City. The Hudson Yards real estate development reportedly received approximately $6 billion in tax breaks, and the incentives didn’t stop there. Some tenants in the development, such as BlackRock (the world’s big- gest money manager), which has over $5 trillion under management, also received tax credits in the tens of millions to occupy the space.52 Again, opponents of the incentives argue that the compa- nies can certainly pay their way. And these argu- ments are countered with companies effectively saying: “Give us what we want, or we’ll leave and take our jobs elsewhere.”53 YOUR THOUGHTS? 1. Make the case for granting tax and other incentives to companies. 2. Argue against such concessions. 3. Now assume you are Jeff Bezos, CEO of Amazon, and decide what you would do: continue with such practices, stop, or something else. Justify your position. Hard Sell . . . Amazon Style OB in Action Organizational Behavior: A Practical, Problem-Solving Approach 483Power, Influence, and Politics CHAPTER 12 Match Tactics to Desired Outcomes Research and practice provide some useful lessons about the relative effectiveness of influence tactics. Rely on the core. Core influence tactics—rational persuasion, consulta- tion, collaboration, and inspirational appeals—are most effective at building commitment. Do not rely on pressure and coalition tactics. In one study, managers who were not very effective at using downward influence relied most heavily on inspiration (an effective tac- tic), ingratiation (a moderately effective tactic), and pressure (an ineffective tactic). More generally, you are well served to: • Be believable and trustworthy. Credible people tend to be the most persuasive. • Consult rather than legitimate. Some employees are more apt to accept change when managers rely on a consultative strategy and are more likely to resist change when managers use a legitimating tactic. • Expect little from schmoozing. Ingratiation improved short-term sales goal achieve- ment but reduced it in the long term. Schmoozing can help today’s sales but not tomorrow’s. • Be subtle. Subtle flattery and agreement with the other person’s opinion (forms of ingratiation) were shown to increase the likelihood executives would win recom- mendations to sit on boards. • Learn to influence. Research with corporate managers of a supermarket chain showed influence tactics can be taught and learned. Managers who received 360-degree feedback on two occasions regarding their influence tactics showed an increased use of core influence tactics. These insights are helpful, but what is the bottom line? There is no one best influence tactic. Customers may respond more favorably to one tactic while internal team members and external business partners are influenced by another.54 You need to understand and effectively apply a range of influence tactics to be effective. But, thankfully, you can learn and improve influence tactics to move resisters to compliance and move those who are compliant to commitment. Influence in Virtual Teams Work is increasingly done from a distance and mediated by technology, so it’s worth know- ing which influence tactics are used most in virtual teams and how. The most common (in order of use) are: pressure, legitimating, rational persuasion, consultation, and personal appeals. These tactics obviously overlap with those used in face-to-face interactions. How- ever, putting the word urgent in the subject line of an e-mail or typing the entire (short) message there provides a quick jolt of pressure, as does marking a message as high priority. Highlighting text is another way of focusing attention and asserting pressure. Reducing ambiguity emerged as a unique influence tactic in virtual teams. Virtual team members do three things to reduce ambiguity:55 1. Share information. Of course we share information face-to-face as well, but in virtual teams sharing ensures members have the information necessary to complete their work or fulfill a request. This differs from rational persuasion since it is not meant to persuade someone to act,56 but instead it helps overcome the lack of nonverbal and other cues in face-to-face interactions that communicate useful information. 2. Create accountability. Accountability is often more explicit in virtual interactions because a written record is created. Clarifying and confirming performance expecta- tions, such as deliverables and timelines, are important examples of accountability. 3. Provide examples. Attachments and screen sharing are common ways in which virtual team members share examples. Again, examples are not a form of rational persuasion intended to convince a team member of a particular position, but instead are a means for clarifying intended messages and providing guidance. Organizational Behavior: A Practical, Problem-Solving Approach 484 PART 2 Groups Let’s not forget emoticons, which convey friendliness or soften an otherwise stern text or e-mail message. You can further enhance your ability to persuade others by understanding and applying the six principles of persuasion described next. Cialdini’s Six Principles of Persuasion Experiments by Robert Cialdini and others have identified six principles for inf luencing people.57 They are based on the idea that peo- ple have fundamental responses, and if your efforts align with these responses your influ- ence increases. Read and learn about the following to see what you think. 1. Liking. People tend to like those who like them. Learning about another person’s likes and dislikes through conversations builds friendship bonds. Sincere and timely praise, empathy, and recognition also help. 2. Reciprocity. The societal norm that says good and bad deeds should be repaid in kind is vir- tually universal. Managers who act unethi- cally and treat employees with disrespect should expect the same in return, and their employees are likely to treat each other and their customers unethically and with dis- respect. Managers need to be positive and constructive role models and be fair-minded to benefit from the principle of reciprocity. 3. Social proof. People tend to follow the lead of those most like themselves, and role models and peer pressure are powerful cultural forces in social settings. Managers are advised to build support for workplace changes by first gaining the enthusiastic support of informal leaders who will influence their peers. 4. Consistency. People tend to do what they commit to, especially publicly or to others. A manager who can elicit a verbal commitment from an employee has taken an impor- tant step toward applying influence and persuasion. 5. Authority. People tend to defer to and respect credible experts. Too many managers and professionals take their own expertise for granted, as did one hospital’s physical therapy staff that grew frustrated by the lack of follow-through by patients. No matter how much these professionals emphasized the importance of continuing therapy, many patients stopped once they returned home. An investigation of the causes revealed patients were unaware of the professional/clinical qualifications of their ther- apists, and once diplomas and certifications were hung on the walls in the clinic, patient compliance increased a remarkable 34 percent!58 6. Scarcity. People want items, information, and opportunities that have limited avail- ability. Special opportunities and privileged information are influence-builders for managers. Cialdini says that when one or more principles naturally exist in a situation, using them together can produce an additive effect. Because there are ethical implications to using your influence, your goals need to be worthy and your actions need to be sincere and genuine. Robert Cialdini is one of the world’s foremost authorities on influence. His principles are based in research and proven in practice. You too can benefit from the application of these principles in every arena of your life— in school, at work, and socially. Courtesy of INFLUENCE AT WORK Organizational Behavior: A Practical, Problem-Solving Approach 485Power, Influence, and Politics CHAPTER 12 Apply Your Knowledge We conclude this section by giving you an opportunity to apply your knowledge in a famil- iar scenario and recognize that effective influence starts with a plan. Follow these steps to create your own influence plan. Step 1: Set a goal and get a clear idea of what you want to achieve. It helps if achieving clearly requires someone else’s effort or agreement. Step 2: Identify the person or persons who can help you achieve that goal. Step 3: Decide what type of influence outcome—compliance or commitment—you want or need from the person(s) identified in Step 2. Step 4: Decide which bases of power and tactics are most appropriate for the influ- ence outcome you desire. (Be realistic about which are available to you.) Step 5: Explicitly describe how you will apply the bases of power and tactics you chose. Apply this approach to the following scenario. Assume your goal is to get a job in the prod- uct development group at Salesforce, a leader in cloud-based customer relationship man- agement services and No. 2 on Fortune’s 2019 list of Best Companies to Work For.59 To achieve this goal, you’ll want to learn more about the organization and its decision makers. Fortunately, you learn that two years ago Salesforce hired Arica, who went to your school. You plan to contact her on LinkedIn in the hope she will share her experiences and put you in touch with the hiring manager in product development. You do not need Arica’s enthusiastic commitment to your employment efforts, since she doesn’t even know you. But what you would like is her compliance with your request for more information and an introduction to the product development group manager. She is probably willing to do this, if for no other reason than she is an alumna of your school, and you were very charming in your e-mail and phone communications. Now you need to decide which of the bases of power and influence tactics you have available with Arica, and which of these are most appropriate for gaining her compliance. We hope the practical tools you’ve gained in this section piqued your interest and you are motivated to learn more about how you can influence others to affect processes and outcomes in the Organizing Framework. Let’s continue to build your knowledge and skills and focus on political tactics next. Organizational Behavior: A Practical, Problem-Solving Approach 486 PART 2 Groups Before we learn about organizational politics, let’s get a sense of how political you are by completing Self-Assessment 12.3. This is another one of those personal attributes, similar to trust, about which people often think more highly of themselves than others do. It there- fore could be quite interesting to have some friends complete this same assessment in terms of how they see you, especially considering this particular self-assessment also taps into ethics and manipulation. Differentiate and apply the main forms of organizational politics. LO 12-4 THE BIGGER PICTURE Politics are not all bad. To make this point, and to increase your effectiveness at school, at work, and socially, we explore this important and interesting topic in terms of causes, tactics, and levels. You’ll learn how to manage politics in your favor. All this will help you better under- stand and manage this ever-present aspect of organizational life and key group-level process in the Organizing Framework. 12.4 POLITICAL TACTICS AND HOW TO USE THEM How Political Am I? Please be prepared to answer these questions if your instructor has assigned Self- Assessment 12.3 in Connect. 1. Does your score accurately capture your tendencies in organizational politics? Why or why not? 2. Do you think a true organizational politician would complete the assessment honestly? Explain. 3. Given knowledge of your political tendencies, describe how they could both help or hurt you at school, at work, and in your career. SELF-ASSESSMENT 12.3 CAREER READINESS Organizational Politics—The Good and the Bad When you hear the word politics, what comes to mind? The President, a deadlocked Congress, or a conniving boss or coworker? Whatever the case, it is unlikely a smile comes to your face. Likewise, people typically view organizational politics as consisting of negative or counterproductive behaviors such as manipulation, controlling of information, and under- mining. But it is important to realize that organizational politics also include positive outcomes, such as restoring justice, providing opportunities and resources for followers, and affecting change.60 If you understand organizational politics you can realize the bene- fits and avoid or manage the shortcomings. Organizational politics are intentional actions to improve individual or organiza- tional interests. This definition clearly allows for positive behaviors and outcomes, but our primary focus in OB is the use of influence to further self-interests, especially when these inter- ests conflict with those of the organization. Managers are endlessly challenged to achieve a workable balance or alignment between employees and organizational interests. Organizational Behavior: A Practical, Problem-Solving Approach 487Power, Influence, and Politics CHAPTER 12 When Are Politics Good? Positive uses of politics can occur when actions help an organization adapt, such as when the organization’s leadership, policies, practices, and/or strategies may be taking the organization in the wrong direction. In these situations, if an individual or coalition operates counter to the organization’s goals, policies, or practices it may ultimately be positive for the organization. Such instances of political action by employees and other groups have exploded in the past few years. See the OB in Action box for an example. Influence has historically been top down—employers say, employees do. The past few years, however, have seen a growing trend of employee activism, wherein the rank and file have asserted themselves to change the policies and practices of their employers. For instance, 20,000 Google employees walked out in the summer of 2018 protesting against the company’s protection of executives accused of sexual harass- ment. This was followed by additional actions. In one instance employees took issue with the company’s contract with the Pentagon for which it was develop- ing software for drone strike targeting. And in another they applied pressure to alter practices pertaining to the treatment of minority workers and contractors. Claire Stapleton, marketing manager at YouTube (owned by Google) and organizer of the employee protests, explained that Google’s own technology (Google Docs and Groups) helped facilitate this polit- ical action. Employees are now organized, commit- ted, and determined to shape the direction of the company.61 This adds to concerns expressed by Googlers about building a search engine censoring product for the Chinese government. And such efforts are not unique to Google. Along with employees from Microsoft and Amazon, they’ve signed petitions pro- testing the uses of their work, and some employees have expressed their objections even more strongly—they’ve quit! An engineer from artificial intelligence start-up Clarifai quit when he learned the project he was working on was for the U.S. Defense Department.62 Again, this is part of a larger trend in which employees want transparency regarding the custom- ers and applications of their work. YOUR THOUGHTS? 1. Do employees have the right to know all details related to their work, such as who the customer is and what the intended uses are? 2. Does your opinion change if the nature of the work is confidential or otherwise protected, as in the case of products, services, or technology related to national security? Justify your answer. 3. Assume you’re an employee and have concerns about such matters regarding your own work. What would you do? Explain. Turning Politics Upside Down . . . Employees Rule! OB in Action When Are Politics Bad? Organizational politics can negatively affect outcomes across all three levels in the Organizing Framework. At the individual level, politics can increase stress and turnover intentions and reduce job satisfaction, organizational commit- ment, and organizational citizenship behaviors. Undesirable effects on the group and orga- nizational levels include wasted time and resources, diverted decision-maker attention, and restricted and distorted information flow among decision makers.63 Uncertainty and Political Behavior The causes of political behavior occur at all three levels of the Organizing Framework. For instance, negative emotions and a lack of trust are the strongest individual- and group/ team-level causes, and a perceived lack of justice is the strongest organizational-level driver of political behavior.64 Underlying most of these causes is a more fundamental or root Organizational Behavior: A Practical, Problem-Solving Approach 488 PART 2 Groups cause—uncertainty. Uncertainty drives a great deal of political behavior, and research out- lines five common sources of uncertainty within organizations: 1. Unclear objectives. 2. Vague performance measures. 3. Ill-defined decision processes. 4. Strong individual or group competition.65 5. Any type of change. Reflecting items 1–4, unfair performance management procedures and outcomes are major determinants of uncertainty. So too is a lack of trust in your boss or a coworker. Individuals and organizations that do not treat their employees with respect, or that create “cut-throat” cultures, also motivate political activity. Related to the fifth factor, many changes at work increase uncertainty and employees’ efforts to protect their interests (status, opportunities, and resources)—in other words, politics. Frequently Used Political Tactics Anyone who has worked in an organization has firsthand knowledge of blatant politicking. Although there are many different ways to describe and categorize political tactics, Table 12.2 shows some of the most commonly used political tactics and a description of each. TABLE 12.2 Most Commonly Used Political Tactics TACTIC DESCRIPTION 1. Building a network of useful contacts Cultivating a support network both inside and outside the organization 2. Using “key players” to support initiatives Getting prior support for a decision or issue; building others’ commitment via participation 3. Making friends with power brokers Teaming up with powerful people who can get results 4. Bending the rules to fit the situation Interpreting or (not) enforcing rules to serve your own interests 5. Using self-promotion Blowing your own horn, but not doing the same for others’ accomplishments 6. Creating a favorable image (also known as impression management, discussed next) Dressing for success; adhering to organizational norms and drawing attention to your successes and influence; taking credit for others’ accomplishments 7. Praising others (ingratiation) Making influential people feel good (brownnosing) 8. Attacking or blaming others Avoiding or minimizing association with failure; scapegoating; reducing competition for limited resources 9. Using information as a political tool Withholding or distorting information; obscuring an unfavorable situation by overwhelming superiors with information SOURCE: Allen, Robert W., Dan L. Madison, Layman W. Porter, Patricia A. Renwick, and Bronston T. Mayes. “Organizational Politics: Tactics and Characteristics of Its Actors.” California Management Review 22, no. 1 (October 1979): 77–83. https://doi.org/10.2307/41164852. Organizational Behavior: A Practical, Problem-Solving Approach 489Power, Influence, and Politics CHAPTER 12 The World Economic Forum in Davos, Switzerland, has become one of the pre- mier events on the planet for building political influence via networking. Leaders from politics, business, government, and many other arenas meet with the goal of improving the state of the world. Individuals are selling products, services, ideas, and themselves by utilizing many of the tactics listed in Table 12.2, such as networking, making friends with influential others, associating with power brokers, making a favorable impression, and praising others.66 You may view some of the tactics in Table 12.2 very favorably, such as building a network of useful contacts. Many management experts and career counselors agree it is wise to build, maintain, and use networks both inside and outside your organization. This is a positive use of politics. However, let’s explore another common and not-so-positive political tactic—blaming others. Blame and Politics You may have noticed that politicking often occurs when things don’t work out; that is, in situations of underperformance, scandal, or otherwise unethical conduct. People often look to assign blame, in part, to help preserve their influence with others. Research in the United States showed 70 percent of employees tend to assign blame for failures in one of three ways: 1. Blame others 2. Blame self 3. Deny blame67 Blame occurs across levels of OB. Goldman Sachs, for instance, was embroiled in allegations of looting nearly $3 billion from a Malaysian government investment fund, The World Economic Forum brings leaders from many domains from around the globe. A wide variety of politi- cal tactics are used by attendees to influence awareness, policy, and action. Jason Alden/Bloomberg/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 490 PART 2 Groups known as 1MDB. Some reports show Goldman has gone to great lengths to aggressively shift responsibility to one “rogue” partner, Tim Leissner, who they say duped a large num- ber of Goldman employees across levels and over time. In efforts to discredit Leissner, the company went so far as to create a PowerPoint presen- tation for U.S. authorities wherein it alleged he was married to two women at once, converted to Islam at least twice to impress Muslim women he was dating, and received a mail-order PhD from a defunct university. It is worth noting that those with knowledge of the campaign against Leissner question the evidence supporting the allegations, and they point out that Goldman’s CEO and compliance department were aware of his actions. The courts will sort out the legal implications, but regardless of those outcomes this is a clear and common exam- ple of an organization blaming employees for mistakes attributed to the organization.68 Counterintuitively, blaming ourselves can be useful in some situations. Consider serial entrepreneurs who may fail in one venture yet go on to start another. Research suggests it is critical for them to accurately identify the appropriate reason for their business failures, such as industry conditions or personal strategy or leadership. If they mistakenly attrib- uted blame to the industry, they are likely to start their next venture in a different industry but repeat the same personal errors (strategy or leadership) and fail again. In contrast, if blaming the industry is correct, then they are likely to start their next venture in the same industry and use what they learned from failure.69 Assigning blame correctly is important not only to preserve your influence, but also to help guide your future behavior. Three Levels of Political Action Figure 12.8 illustrates three levels of political action: the individual level, the coalition level, and the network level. At the individual level, we pursue our self-interests. The political aspects of coalitions and networks are not so obvious, however, and thus require a bit of explanation. Coalition-Level Politics A coalition is an informal group bound together by the active pursuit of a single issue. Coalitions may or may not coincide with formal group membership. When the coalition’s target issue has been resolved (when a sexually harass- ing supervisor is fired, for example), the coalition disbands. Political coalitions have “fuzzy boundaries,” meaning they are fluid in membership, flexible in structure, and temporary in duration.70 Coalitions are a potent political force within and between organizations. A very interesting coalition was developed between food delivery service UberEats of London and one of its largest clients, McDonald’s. UberEats couriers decided to strike and picket next to McDonald’s employees, both demanding higher pay. Employees of both companies have long felt powerless against their enormous and resource rich employers, but by banding together for a common cause, expanding to multiple cities, and including employees of other client restaurants, they may have greater influence. For example, the food delivery service companies know McDonald’s views delivery as a key to its future growth. Although nothing has changed yet, the pressure is clearly on.71 FIGURE 12.8 Levels of Political Action in Organizations Cooperative pursuit of general self-interests Cooperative pursuit of group interests in specific issues Individual pursuit of general self-interests Distinguishing Characteristics Network Level Coalition Level Individual Level Organizational Behavior: A Practical, Problem-Solving Approach 491Power, Influence, and Politics CHAPTER 12 The past few years have seen an increase in student activism and the application of multiple political tactics to influence change. See the following OB in Action box. Students of Marjory Stoneman Douglas High School in Parkland, Florida, garnered tremendous attention, support, and influence when they rallied against gun violence in schools after 17 students and teachers were killed at their school in 2018. Student repre- sentatives went to Washington, DC, were inter- viewed on 60 Minutes and NPR, and were featured in Time and Teen Vogue.72 The ensuing March for Our Lives campaign is associated with a number of changes in gun policies across the country, such as 67 gun-control measures, a historic surge in youth voting in the 2018 midterm elections, and eight states passing extreme risk protection measures. What began as a coalition is now a formal organiza- tion with chapters in 200 cities across America.73 These events and actions helped motivate numerous companies to break ties with the National Rifle Association (NRA). Delta and American Airlines halted agreements to provide discounts to NRA members, and MetLife stopped providing discounted insurance rates for NRA members’ boats, RVs, and motorcycles. And not surprisingly, the NRA then advised its members not to use the services and products of these companies.74 Political action can and often does work in both directions. Yet still other companies—Walmart, Meijer, and L. L. Bean— stopped selling certain guns and put limits on the purchase of others. However, there is another angle. FedEx, for instance, continued its NRA member discounts and said, the company “has never set or changed rates for any of our millions of customers around the world in response to their politics, beliefs or positions on issues.”75 More generally, such activities are part of a larger trend in American business, which is that organiza- tions and their leaders are increasingly expected to actively engage social and political causes. Due in part to social media, executives and the companies they run are pressured to confront issues they could historically avoid. They now are making such choices on ethical grounds or organizational values. For example, Dick’s no longer sells guns and CVS has stopped selling tobacco products.76 YOUR THOUGHTS? 1. Should companies take action on what many see as political matters? Explain your position. 2. If you were the CEO of American Airlines, justify your decision to stop offering discounts to NRA members. 3. Now assume you are CEO of a competing airline that also has agreements to provide discounts to NRA members. Justify honoring those commit- ments and continuing to grant discounts. Fed Up, Rise Up, Affect Change . . . Students Take Action OB in Action March for Our Lives is an excellent example of students organizing to affect change. The Asahi Shimbun/Getty Images Network-Level Politics In terms of organizational politics, networks are people-oriented, while coalitions are issue-oriented. Networks have broader and longer-term agendas than do coalitions. The Time’s Up movement, initiated by some powerful women in Hollywood (Reese Witherspoon and Shonda Rimes), is an excellent and recent example of network-level politics. The mission of this movement is “that everyone, every human being, deserves a right to earn a living, to take care of themselves, to take care of their families, free of the impedi- Organizational Behavior: A Practical, Problem-Solving Approach 492 PART 2 Groups ments of harassment and sexual assault and discrimination. In short—fairness, safety, and equity in the workplace,” said Christy Haubegger, one of the founders of Time’s Up.77 By focusing on more general characteristics at work, Time’s Up is an example of net- work-level politics; it differs from the #MeToo movement which focuses specifically on sexual violence. Before moving on, remember you need to match political activity to the appropriate level to meet your objectives. No particular tactic or level is good or bad, rather it is how effectively either assists in meeting your goals that matters. Now let’s explore directly how to use politics to your benefit. Using Politics to Your Advantage We close this section by highlighting the point that people’s perceptions of politics (POP) matter, not just actual acts of politics. As perceptions, POPs are subjective evaluations of the extent to which “the work environment is characterized by coworkers and supervisors who demonstrate such self-serving behavior,”78 and these perceptions matter. POPs have been linked to many undesirable outcomes in the Organizing Framework, such as: • Decreased job satisfaction, organizational commitment, and commitment. • Increased stress, frustration, and turnover intentions.79 Do these results suggest managers should attempt to stop people from being political? Good luck. Organizational politics cannot be eliminated, but political behavior can and should be managed to keep it constructive. Not Too Much and Not Too Little An individual’s degree of political engagement is a matter of personal values, ethics, and temperament. People who are either strictly non- political or highly political generally pay a price for their behavior. The former may experi- ence slow promotions and feel left out, while the latter may run the risk of being called self-serving and lose credibility. People at both ends may be considered poor team players. A moderate amount of prudent political behavior is generally considered a survival tool in organizational life. And it is worth noting that the reason politics has a bad name is due to politicians and their behavior. Politics is not inherently bad; the problem is the way politics is practiced. How to Build Support for Your Ideas Our discussion of politics might leave you asking, “What should I do? How do I avoid the bad and take advantage of the good?” Here are eight recommendations backed by research and practice: 1. Create a simple one-liner that captures your idea. 2. Get your idea on the agenda. Describe how it addresses an important need or objec- tive and look for ways to make it a priority. 3. Score small wins early and broadcast them widely. Results build momentum and make it easier for other people to commit. 4. Form alliances with people who have the power to decide, fund, and implement. 5. Persist and continue to build support. Persuading others is a process, not an event. 6. Respond and adjust. Be flexible and accepting of other people’s input; the more names supporting your idea, the more likely you are to succeed. 7. Lock it in. Anchor the idea to the organization through budgets, job descriptions, incentives, and other operating procedures. 8. Secure and allocate credit. You don’t want your idea to be hijacked, nor do you want to blow your own horn. You need others to sing your praises to ensure you get the credit you deserve.80 Now we turn our attention to a specific form of influence—impression management. Doing this effectively is key to your job and career opportunities and success. Organizational Behavior: A Practical, Problem-Solving Approach 493Power, Influence, and Politics CHAPTER 12 THE BIGGER PICTURE We all want to look good in the eyes of others, and to do this we often engage in impression management. Like the other topics discussed in this chapter, impression management con- sists of techniques for influencing others in all arenas of life. To help you manage your own impressions, we define impression management and discuss what it means to make good impressions, as well as how to make positive impressions during job interviews and effective apologies. You will see how practical knowledge in this area helps boost your effectiveness across levels of outcomes in the Organizing Framework. Determine how to implement effective impression management. LO 12-5 12.5 IMPRESSION MANAGEMENT We pursue the basic human desire to impress others not only because it makes us feel good about ourselves, but also because others can often provide what we desire, such as a job, a good grade, or a date. Many of our attempts to influence others in such ways are impres- sion management. What Is Impression Management? Impression management is any attempt to control or manipulate the images related to a person, organization, or idea.81 It encompasses speech, behavior, and appearance and can be aimed at anyone—parents, teachers, peers, employees, and customers are all fair game. For instance, by positioning themselves as socially respon- sible, companies can create positive impressions with many stakeholders, such as potential customers, and in turn boost sales.82 Let’s dive into good and bad impressions in more detail. Good Impressions Research conducted in the context of job interviews shows that impressions are formed very quickly and often subtly. Interviewers gather information about job candi- dates based on their handshake, smile, and manner of dress. All this information is communicated before any questions have been asked or answered. These same factors were also related to ultimate job offers. The following Applying OB box provides additional guidance. How to Make a Killer First Impression You’ve undoubtedly heard the saying, “You have only one chance to make a good first impression.” Some argue people judge you within one second of meeting you. Researchers tested this belief and found that after viewing only a microsecond of a video of a political candidate, subjects predicted Organizational Behavior: A Practical, Problem-Solving Approach 494 PART 2 Groups with 70 percent accuracy who would win an election. Table 12.3 provides recommenda- tions to help you overcome the pressure and ensure that people’s snap judgments of you are favorable. Reciprocity and Impression Management Recall our discussion of reciprocity earlier in this chapter (“Cialdini’s six Principles of Persuasion”) and the benefits of giving in order to receive. Research tells us that when a CEO makes positive comments about another executive and the other executive’s company, Wall Street analysts give more favor- able reports of both the CEO and the company even when they come up short of earnings forecasts.83 Put another way, saying something positive in the media means Wall Street analysts are likely to be more forgiving if your performance is low. This is obviously a powerful form of influence—one that really pays. Favorable Upward Impression Management Tactics On a positive note, both research and practice have revealed numerous forms of upward impression management techniques which can be put in three categories:86 1. Job-focused—tactics that present information about your job performance in a favorable light. 2. Supervisor-focused—praise and favors for your supervisor. 3. Self-focused—an image of yourself as a polite and nice person. Recent work highlights two additional ways of impressing your boss. The first is to associate yourself with so-called stars, those on the fast track who already have the atten- tion of management. The second is to work on key projects that need help or refinement. Applying OB The bottom line? Etiquette matters. The following are elements of etiquette you should carefully consider and practice. 1. I address interviewers by their formal titles when first meeting them. 2. I dress formally for interviews—dark business suit—versus dressing more casually. 3. I carry a portfolio/notepad to the interview. 4. I extend my hand first when meeting the interviewer. 5. I provide a firm handshake to the interviewer. 6. I provide the interviewer with an extra copy of my resume at the time of the interview. 7. I keep my cell phone silenced and out of sight dur- ing the interview. 8. I exchange business cards with the interviewer. 9. I thank the interviewer for his or her time at the end of the interview. 10. I follow up with a thank you note (e-mail is accept- able) after the interview.85 These are simple enough, be sure to implement them. As much as jobs, careers, and technology change, some things remain the same. Notably, the interview is still the most critical determinant in hiring decisions. You there- fore want to do what you can to get the interview and perform well once you do. One important determinant of your performance is presenting the appropriate image, and etiquette is a key contributor to this. Those involved in the hiring process may consciously assess your etiquette as a part of your image, or they will sub- consciously consider it. Either way, etiquette matters. First, what is etiquette? Interview etiquette is “the customary code of polite behavior that prospective employees adhere to (or should adhere to) during interactions with recruiters, hiring managers, and other members of an organization throughout the interview process.”84 Interesting research found interviewees’ etiquette had similar importance to answer quality and perceived person–organization fit. The same research also found etiquette serves to amplify the positive effects of high- quality answers to interview questions. And last but cer- tainly not least, etiquette also predicted more job offers, more than self-promotion or ingratiation! Etiquette Gets You Hired CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 495Power, Influence, and Politics CHAPTER 12 In both instances, managers have more positive emotions about the employee and perceive him or her as more promotable.87 What are your own tendencies for using favorable impression management? Self-Assessment 12.4 will help you understand the types of impression management—job-, supervisor-, and self-focused—you use in work settings. Be sure to answer the accompany- ing questions to get the most from your knowledge. TABLE 12.3 How to Make a Killer First Impression ACTION DESCRIPTION Set goals When you’re preparing for an event (a meeting, social event, or confer- ence), think of whom you’d like to meet and what you’d like to achieve from that introduction. Then plan your energy, introduction, and com- ments accordingly. Consider your ornaments We’re not talking about Christmas trees or party favors, but instead about your jewelry, makeup, and clothes. This advice is for both men and women. Many people will draw conclusions from the type of watch you wear and how well it aligns with your clothes (sporty, gaudy, trendy). Makeup and jewelry are judged similarly. Be sure they match your personality and your intended message. Remember your body speaks We’ve all heard body language makes a difference, so pay attention to nonverbals. Find a way to video yourself in a social setting. Use this evi- dence to help manage your body language habits in the future. Bust bad moods and bad days If you’re in a bad mood before an important event, find a way to snap out of it—play some of your favorite music, work out, go shopping—or resched- ule (or stay home). People will pick up on your mood, and you don’t want your body language to convey: “Hello, my name is Bad Mood Bob.” Be interested to be interesting The best way to appear interesting is to appear interested. People tend to like people who like them; at least this is a good place to start. Rather than blather on about yourself, an excellent way to show interest is to ask questions about the other person. You may be able to do research ahead of time about the person or persons you’ll meet, and make it part of your goal to ask them about what you learned. SOURCE: Adapted from V. Van Petten, “5 Ways to Make a Killer First Impression,” Forbes, November 2, 2011, http://www.forbes.com/sites/ yec/2011/11/02/5-ways-to-make-a-killer-first-impression/. Your Impression Management—How and Who Please be prepared to answer these questions if your instructor has assigned Self- Assessment 12.4 in Connect. 1. Are you better suited for “Hollywood,” or are you better described as safe or a free agent? 2. What are the benefits of your impression management tendencies? 3. What are the drawbacks? 4. Look at all the items in the assessment and select the two that could be most useful to you. Describe specifically how you could use them. 5. What about ethical considerations? Which items potentially raise ethical flags for you? Why and why not? SELF-ASSESSMENT 12.4 CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 496 PART 2 Groups Let’s be clear: a moderate amount of upward impression management is a necessity, but not all forms are effective and none are effective all the time. Ingratiation, for instance, can slightly improve your performance appraisal results and make your boss like you sig- nificantly more. Engage in too little impression management and busy managers are liable to overlook some of your valuable contributions when they make job assignment, pay, and promotion decisions. But do too much and you run the risk of being branded a “schmoozer,” a “phony,” and other unflattering characterizations by your coworkers. Con- sider, for instance, that the application of noticeable flattery and ingratiation can backfire by embarrassing the target person and damaging your credibility.88 Impression Management and Job Interviews Job interviews probably epitomize our experiences of impression management, as there are few other instances in which we are more determined to make a good impression. Researchers provide a number of insights we highlight next. Deception Detection Many people are deceptive in interviews, and interviewers’ abilities to detect such tactics vary greatly. One study found that experienced interviewers were no better at detecting deception than novices.89 Ethics aside, bending the truth in an interview can cause an organization to hire the wrong person for the job. Deception that leads to bad hires can be very costly. Organizations are wise to train their interviewers to identify the common impression management tactics used in interviews, such as self-promotion, image repair, image protection, and image creation. This is the first step in making them aware of the deceptive techniques candidates often use.90 Other research shows that both interviewers and coworkers are especially poor at knowing whether a candidate is honest and humble, qualities increasingly valued in the workplace. Employees lacking these characteristics are known to engage in more counter- productive work behaviors and have lower performance.91 Of course, we encourage you to be ethical, present your true self, and use the other knowledge in this chapter (and book) to be more influential and impress interviewers. Tattoos may also be part of your impression during an interview. Read the OB in Action box and find out. The frequency and perceptions of tattoos has changed dramatically over time. For perspective, a survey of over 9,000 people in 18 countries revealed some interesting insights about preva- lence and attitudes based on age and country. Notably, • 38% of respondents had at least one tattoo. • 45% of those 30–49 years old did, vs. 32% of those 14–29. • 72% don’t regret getting inked. • 75% of those with tattoos have more than one. • Italy, Sweden, and the U.S. are the most tattooed of the countries represented, with 48 percent, 47 percent, and 46 percent, respectively. • Tattooed Americans are more likely than people in other countries to have multiple tatts (the median is 4).92 • In most countries the prevalence of tattoos is quite similar for men and women. Not long ago health researchers found associa- tions between youths’ tattoos and sexual activity, alcohol and drug use, eating disor- ders and suicide. But more Is Your Ink an Asset, a Liability, or Just Colorful? OB in Action Are tattoos a non- issue or a hindrance during job interviews? Could they help your prospects? Frare Davis/Rubberball/ Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 497Power, Influence, and Politics CHAPTER 12 Interviewers’ Attempts to Impress You There’s another angle on the story—inter- viewers are trying to impress interviewees. Especially in tight labor markets, employers compete intensely for top talent. This means they must impress candidates in order to attract and hire the best, representing the organization favorably with a broad range of tactics, including: • Verbal—what they say and how they say it. • Nonverbal—laughing, smiling, leaning in. • Artifactual—dress, appearance of interview venue, visual and promotional items. • Administrative—timing of communication, confirmation that application was received, feedback, and follow-up.100 Ethics and Impression Management It’s one thing to cast yourself in the best possible light, but it is quite another to lie. There- fore, the ethics of impression management focuses on the gray area in between. One way to help decide whether your favorable light is “too bright” (has gone too far) is to imagine you have to explain what you said or did on the evening news. Would you be comfortable with portraying that same impression to the entire community? Would people who know you well, friends or coworkers (past and present), agree? Asking and answering these two current evidence suggests otherwise and shows ink and piercings (other than in one’s ears) are now mainstream. However, nearly as many people today as in 2008 still think such associations exist.93 Although health risks related to tattoos and piercings persist, such as hepatitis C and infections due to tainted ink, regulation of tattoo studios varies dramatically from state to state.94 But what matters more for OB is what such forms of body art say about you, and how others’ impressions affect your job and career opportunities. Perceptions and Stereotypes The reality is that, depending on who sits across the table from you in an interview, your body art could make a difference. As one HR writer put it, one sees your tatts and concludes you’re an unreliable rene- gade, while another may see you as creative and expressive, a person to whom younger customers will relate.95 But one recent study suggests there are no hiring, wage, or earnings differences between inked and non-inked candidates.96 What Do Hiring Managers Think? Before rushing out to the tattoo studio on the way to your next job interview, it is important to consider the nature of your tattoo(s) and other body art. Some are more obvious and potentially more offensive than others. Some research has found biases against can- didates with tatts. Many of the old stereotypes, like tatts being associated with gang membership, still linger and can cost you job offers and higher starting salaries. The authors of this study explain that hiring managers have limited information about candidates during the recruiting process, and as a result may resort to or be influenced by such stereotypes. Spe- cifically, applicants with extreme tattoos were viewed as less competent and committed. And manager ink was related to the views of candidates. Managers with tatts viewed candidates with tatts more favor- ably, and those without tended to discount the value of candidates with body art.97 Worth Considering It’s also worth considering the industry in which you want to work. If you’re an athlete without ink you’re in a puny minority (only 14 percent), and the same goes for primary school teachers. Nearly 60 percent have at least one tatt according to research by the Harris group.98 Finally, an employer can establish a dress code requiring employees to cover body art, but at the moment no laws exist governing such policies and practices.99 YOUR THOUGHTS? 1. Assume you’re a hiring manager, how would you perceive a candidate’s body art? Explain. 2. Would you allow it to influence your decisions? Explain. 3. If approximately 40 percent of adults in the U.S. have tattoos, then explain the implications of hiring versus not hiring those with Ink. Organizational Behavior: A Practical, Problem-Solving Approach 498 PART 2 Groups questions can help you navigate the ethics of impression management. Research provides some guidance and interesting details to consider. A study of more than 600 companies surpassing $100 million in revenues showed that unfavorable analyst comments prompted the CEOs to say their companies do have policies and practices that are in shareholders’ best interests. Related research showed that CEOs also routinely said their own compensation plan was aligned with shareholder interests, although in both instances they regularly misrepresented the issues.101 For example, their companies often made job and R&D cuts that undermined the long-term health of the company (counter to shareholder interests), and their personal compensation often increased even when the share price of their company plummeted. Consider this story of impression management from a large bank: EXAMPLE After 7 pm, people would open the door to their office, drape a spare jacket on the back of their chair, lay a set of glasses down on some reading material on their desk—and then go home for the night. The point of this elaborate gesture was to create the illusion that they were just out grabbing dinner and would be returning to burn the midnight oil.102 No one is always right. Sometimes an apology is necessary to save, repair, or even enhance the impressions others have of you. Let’s look at how best to do this. Apologies One way to remedy or at least reduce the impact of bad impressions, negative uses of power, or poor performance is an apology. Apologies are a form of trust repair in which we acknowledge an offense and usually offer to make amends. It is a widely held norm in the U.S. and other cultures (such as in Japan) to apologize when our action, or lack of action, causes harm to another, whether intentionally or not. And while harm can be perceived or actual, it is always real to those harmed. Apolo- gies are effective to the extent they restore trust and positively affect your ability to influ- ence the offended party in the future.103 To help ensure the effectiveness of your apologies, make sure they include the following four characteristics: 1. Acknowledgment of wrongdoing. 2. Acceptance of responsibility. 3. Expression of regret. 4. Promise the offense will not be repeated.104 Deep and public bows are a sign of apology in Japanese cultures, as illustrated in the photos of executives of Takada (defective airbags) and Toshiba (pattern of overstated prof- its). Public apologies by leaders can either make or break the public relations and reputa- tion of organizations. For example, Kentucky Fried Chicken (KFC) once ran out of chicken in the United Kingdom, which resulted in the temporary closure of 900 restau- rants there. The company responded with humor and took out a full-page ad in London newspapers showing its emblematic bucket with the letters in its logo rearranged to read— FCK—along with an explanation and assurances it wouldn’t happen again. Risky, but it was effective.106 Another example was PWC’s mistake in the Best Picture category at the 2017 Oscars. The company was responsible for the voting process and listed the wrong winner. Partici- pants in the ceremony intervened in real time and rectified the situation.107 The company briefly explained what happened, apologized, and then made and explained numerous changes to ensure it wouldn’t happen again.108 Organizational Behavior: A Practical, Problem-Solving Approach 499Power, Influence, and Politics CHAPTER 12 It also is helpful to consider that a failure to apologize, or to do so in a timely manner, can turn a bad situation worse and damage how others see you. You are now far better equipped to influence people in many arenas of life. We close this chapter with a reminder: You typically have more power than you think and don’t need a fancy title or corner office. We encourage you to be more purposeful and accurate in your application of power, empowerment, influence, politics, and impression manage- ment. Doing so will dramatically increase your effectiveness across levels of the Organiz- ing Framework. Besides, you’ll get your way more often! Let’s conclude the chapter with a few pointed applications of the knowledge and tools from this chapter. Executives from some of Japan’s largest companies have issued very public apologies; among them were Shigehisa Takada, the CEO of Takata, the maker of defective airbags responsible for the recall of over 60 million vehicles worldwide. Electronics giant Toshiba overstated profits by more than a billion dollars over a number of years. Its CEO, Hisai Tanaka, resigned along with a number of board members.105 (Left): Nippon News/Aflo Co. Ltd./Alamy Stock Photo; (right): epa european pressphoto agency b.v./Alamy Stock Photo Organizational Behavior: A Practical, Problem-Solving Approach 500 PART 2 Groups 12.6 MAKING THE CONNECTION: HOW CAN I APPLY POWER, INFLUENCE, AND POLITICS TO INCREASE MY EFFECTIVENESS? The following applications should help increase your own influence and increase your performance and opportunities throughout your career. Takeaways for Me Here are five practical applications. 1. Be mindful that the power you use affects whether people resist, comply, or actually commit to your wishes. 2. Use both position and personal power. You’ll find the most influential and successful people you work with, even those with big titles and considerable position power, derive much of their effectiveness by using personal power. 3. Develop your referent power. You can use your (social) network to help others, which in turn builds your own power. If someone that has helped you in the past called you today and asked for assistance, would you provide it? Of course you would. This illustrates the power of reciprocity and shows helping others enhances your power and influence. 4. Increase your understanding and expand your use of influence tactics and political tactics (see Table 12.1). Match the tactic to the situation and boost your effectiveness. 5. To make more favorable impressions in your professional life, follow the advice in Table 12.3. Takeaways for Managers There are five very important practical tools for managers. 1. Do not rely (heavily) on your position power. Use it when you need to, but if you consis- tently rely on it to get things done you will dramatically undermine your power and influence with others. 2. Identify and develop your particular sources of personal power. Even those with substan- tial position power (like executives) get ahead in the long term by effectively blending it with personal power. 3. Use both structural and psychological empowerment to more effectively manage others. When done well, empowerment can supercharge the performance of those you man- age and in turn your own. Besides, even if you’re a superhero, you can’t do everything yourself—share your power to build your power. 4. Learn about and apply a larger variety of influence and political tactics. Don’t get stuck playing your preferred tactics, such as rational persuasion, again and again across all situations. Choose the right tactic for the situation to build your effectiveness. 5. Don’t be afraid to apologize. Willingness to apologize builds credibility and influence with those you manage. THE BIGGER PICTURE We conclude this chapter with a number of practical applications of power, empowerment, influence, politics, and impression management. Use your new knowledge and tools to improve your effectiveness as both an employee and manager. Describe the implications of power, influence, and politics for you and managers. LO 12-6 Organizational Behavior: A Practical, Problem-Solving Approach 501Power, Influence, and Politics CHAPTER 12 You learned your effectiveness can be increased by applying power, influence, politics, and impres- sion management. You learned the bases of power, common influence tactics, the causes of politics, and which forms are most effective in dif- ferent situations. You also learned sharing power and empowering others are important means for building your own influence and improving your performance. Reinforce and consolidate your learning with the Key Points and Organizing Framework. Then challenge your mastery of the material by completing the Problem-Solving Application Case and Legal/Ethical Challenge. Key Points for Understanding Chapter 12 You learned the following key points. 12.1 POWER AND ITS BASIC FORMS • Power is the discretion and the means to enforce your will over others. • The five main bases of power are legitimate, reward, coercive, expert, and referent. • The first three bases are considered forms of position power, and the last two are forms of personal power. • The bases of power we use often determine whether others will resist, comply, or commit to our wishes. 12.2 POWER SHARING AND EMPOWERMENT • Empowerment consists of efforts to enhance employee performance, well-being, and posi- tive attitudes. • Structural empowerment transfers authority and responsibilities from management to employees. • Power sharing can occur on a continuum from domination to consultation, participation, and finally delegation. • Psychological empowerment occurs when employees feel a sense of meaning, compe- tence, self-determination, and impact. 12.3 EFFECTIVELY INFLUENCING OTHERS • Influence tactics are conscious efforts to affect and change behaviors in others. • Sharing information, creating accountability, and providing examples are common influ- ence tactics used by virtual teams. • Six principles of persuasion are liking, reci- procity, social proof, consistency, authority, and scarcity. 12.4 POLITICAL TACTICS AND HOW TO USE THEM • Organizational politics are intentional acts to improve individual or organizational interests. • Competition and uncertainty are major causes of political actions. • Political action occurs at three levels— individual, coalition, and network. 12.5 IMPRESSION MANAGEMENT • Impression management is any attempt to control or manipulate the images related to a person, organization, or idea. • Impression management is especially impor- tant in job interviews, but beware of decep- tion as well as interviewers’ attempts to impress you. • Effective apologies are more than simply say “sorry.” What Did I Learn? Organizational Behavior: A Practical, Problem-Solving Approach 502 PART 2 Groups management. Collectively, these tools represent important group-level processes. And the way you use these tools often determines whether people resist, comply with, or actually commit to your wishes. You learned how using these tools relates to individual-level outcomes, such as per- formance, attitudes, well-being, (counter)produc- tive citizenship behaviors, turnover, and career outcomes. Power and influence are also associ- ated with satisfaction, cohesion, and conflict at the group/team level, and with survival, financial performance, customer satisfaction, and reputa- tion at the organizational level. Beyond this, you explored the notion of empowerment and how sharing power with others can increase your own power and influence. 12.6 HOW CAN I APPLY POWER, INFLUENCE, AND POLITICS TO INCREASE MY EFFECTIVENESS? • Understanding and applying a broader array of influence makes you more effective in all jobs, levels, and career stages. • How you influence subordinates is a key determinant of whether they resist, comply, or commit with your wishes. The Organizing Framework for Chapter 12 As shown in Figure 12.9, you learned practical tools to help influence others—power, empower- ment, influence, politics, and impression FIGURE 12.9 The Organizing Framework for Understanding and Applying OB INPUTS PROCESSES OUTCOMES Person Factors • Personality • Skills and abilities • Values • Ethics Situation Factors • Relationship quality • Leadership Individual Level • Conflict and negotiation • Emotions • Perceptions • Motivation • Trust • Communication • Psychological empowerment Group/Team Level • Group/team dynamics • Conflict and negotiation • Decision making • Power, influence, and politics • Performance management • Leadership • Trust • Structural empowerment • Impression management Organizational Level • Human resource policies and practices • Leading and managing change and stress • Impression management Individual Level • Task performance • Work attitudes • Citizenship behavior/ counterproductive behavior • Turnover • Career outcomes • Stress Group/Team Level • Group/team performance • Group satisfaction • Group cohesion and conflict Organizational Level • Accounting/financial performance • Customer satisfaction • Reputation • Legal liability © 2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. Organizational Behavior: A Practical, Problem-Solving Approach 503Power, Influence, and Politics CHAPTER 12 Business events that move to strip clubs, e-mails in your own inbox about parts of your body, lewd and vulgar comments, and more commonly but similarly troubling—unfair pay and promotion practices. These are a subset of complaints revealed in a survey conducted by female employees at Nike. The find- ings illustrated systematic sexual harassment and discrimination. Supporting these claims are a long history of com- plaints to HR and leaders within the company about inappropriate behavior by a number of male leaders. Women comprise nearly 50% of the company’s work- force, but occupy only 38% of management level and 29% of vice president positions.109 Female employees shared these results with CEO Mark Parker in an effort not only to improve the situa- tion for women at Nike, but also to improve Nike. Their efforts provide yet another example of how employees are organizing and wielding power and influence to change leadership, culture, and practices at their employers.110 HOW DID THIS HAPPEN? The allegations and evidence are wide-ranging, but many attribute misconduct not only to the perpetra- tors, but also to their superiors who have tolerated or looked the other way. For instance, numerous impli- cated executives are linked to former company pres- ident Trevor Edwards. His charismatic personality and stellar performance had taken him to the heights of the organization, and many believed he was next in line for the CEO job. But many senior leaders who ascended the ranks were largely male and consid- ered a part of an elite group—F.O.T., or Friends of Trevor.111 Although Nike claims the behaviors were the actions of an insulated few, and has since fired at least 11 executives as a result, the fact remains that many individuals in power destroyed relationships and undermined the careers of others. Complicit were HR policies, practice, and people who failed to sufficiently act on and provide consequences for inappropriate behavior. These detrimental actions eroded performance, trust, and a sense of justice, along with fostering conflict and a culture many describe as dis- criminatory and abusive to women. THE COSTS In addition to damaging the careers of the terminated executives, widespread misconduct exposes the com- pany to tremendous legal liability, reputational dam- age, investor pressure, and the alienation of women both inside and outside the company. Expanding product offerings for female customers is a major com- ponent of the company’s strategy. Particularly trouble- some for the remaining leaders is the likelihood of a class action lawsuit, in which more than 500 employ- ees will seek compensation from Nike for sexual harassment, pay discrimination, and unfair promotion practices.112 REACTIONS CEO Parker and the remaining senior leadership team have responded in several ways. Parker directly and publicly acknowledged the problems and apologized to employees in a town hall meeting, established a complaint hotline, set up unconscious bias training, required specific training for managers, appointed Nike’s first chief diversity and inclusion officer, revamped its pay structure and provided raises for approximately 7500 employees, or 10% of its global workforce. Nike also has adopted a gender-blind resume review process, and is tying bonuses more prominently to overall company performance.113 Part of Parker’s apology included, “I apologize to the people on her team who were excluded, and I apologize if some of those same people felt they had no one to turn to . . . I want everyone at Nike to know their voices do matter and your bravery is making us better.”114 But even after all of the company’s correc- tive actions, Parker and others feel the work is far from finished. Assume you are CEO Parker and you want to: (1) make amends with the important stakeholders involved, and (2) put Nike on a positive track for the future. Drawing on what you learned in this chapter what else would you do? PROBLEM-SOLVING APPLICATION CASE #MeToo—Just Do It! Organizational Behavior: A Practical, Problem-Solving Approach 504 PART 2 Groups of the problem. Asking why multiple times is more likely to lead you to root causes of the problem. For example, do executive characteristics help explain the problem you defined in Step 1? B. Follow the same process for the situation fac- tors. For each ask yourself, why is this a cause? By asking why multiple times you are likely to arrive at a more complete and accurate list of causes. Again, look to the Organizing Frame- work for this chapter for guidance. Did particular policies or practices play a role? C. Now consider the Processes box in the Organiz- ing Framework. Are any processes at the indi- vidual, group/team, or organizational level potential causes of your defined problem? For any process you consider, ask yourself, why is this a cause? Again, do this for several iterations to arrive at the root causes. D. To check the accuracy or appropriateness of the causes, be sure to map them onto the defined problem and confirm the link or cause and effect connection. STEP 3: Recommend solutions. Make your recommendations for solving the problem. Consider whether you want to resolve it, solve it, or dissolve it (see Section 1.5). Which recommendation is desirable and feasible? A. Given the causes you identified in Step 2, what are your best recommendations? Use material in the current chapter that best suits the cause. Consider the OB in Action and Applying OB boxes, because these contain insights into what others have done. B. Be sure to consider the Organizing Framework— both person and situation factors—as well as processes at different levels. C. Create an action plan for implementing your recommendations, and be sure your recommen- dations map onto the causes and resolve the problem. APPLY THE 3-STEP PROBLEM- SOLVING APPROACH TO OB Use the Organizing Framework in Figure 12.9 and the 3-Step Problem-Solving Approach to help identify inputs, processes, and outcomes relative to this case. STEP 1: Define the problem. A. Look first at the Outcomes box of the Organizing Framework to help identify the important problem(s) in this case. Remember a problem is a gap between a desired and current state. State your problem as a gap and be sure to consider problems at all three levels. If more than one desired outcome is not being accomplished, decide which one is most important and focus on it for steps 2 and 3. B. Cases have key players, and problems are gen- erally viewed from a particular player’s perspec- tive. You need to determine from whose perspective—employee, manager, team, or the organization—you’re defining the problem. In this case you’re asked to assume the role of CEO Mark Parker. C. Use details in the case to determine the key problem. Don’t assume, infer, or create problems not included in the case. D. To refine your choice, ask yourself, why is this a problem? Explaining why helps refine and focus your thinking. Focus on topics in the current chapter, because we generally select cases illus- trating concepts in the current chapter. STEP 2: Identify causes. Using material from this chapter and summarized in the Organizing Framework, identify the causes of the problem you identified in Step 1. Remember, causes tend to appear in either the inputs or Processes boxes. A. Start by looking at the Organizing Framework (Figure 12.9) and decide which person factors, if any, are most likely causes of the defined prob- lem. For each cause, explain why this is a cause LEGAL/ETHICAL CHALLENGE If You Work Here, You Can’t Eat Meat!115 Vegetarians might rejoice, but meat-eating WeWork employees may lament that the company will no longer serve or pay for red meat, poultry, or pork at company functions. Companies have the right to determine what they pay for, such as the food and beverages at functions and what employee expenses they reimburse. Miguel McKelvey, co-founder and CEO of the office sharing company, justified this new policy in the name of the environment, claiming that avoiding meat can have a larger environmental impact than driving a hybrid car, Organizational Behavior: A Practical, Problem-Solving Approach 505Power, Influence, and Politics CHAPTER 12 part of a leader’s responsibility today. “Companies have greater responsibility to their team members and to the world these days . . . We’re the ones with the power. Large employers are the ones that can move the needle on issues.” What Would You Do? 1. Assume you are the founder of a company, and also assume you are fine with imposing your val- ues on your employees. Name one value and how would you ensure employees comply? Also justify your decision. 2. Argue against such practices, explaining why and how imposing your values can negatively affect employees and your business. 3. Take a completely different course of action and explain. and the anticipated reduction in meat consumption by WeWork employees alone will save over 15 million animals in just a few years. McKelvey argued further the policy is intended to heighten the awareness and accountability of the company’s 6,000 employees. Critics, however, note this is just another example of employers imposing the values of their leaders on employees. For instance, Hobby Lobby refuses to pay for employees’ birth control, Koch Industries distrib- utes messages encouraging employees about how to vote, and IBM made a short-lived attempt to ban employees from using ride-sharing apps. Some policies are better aligned with business objectives and cost savings. For instance, GE incentiv- ized employees to quit smoking in order to improve health and cut costs, and Scotts Miracle-Gro took it a step further and adopted a policy of not hiring smokers altogether. When questioned about imposing his views on WeWork employees, McKelvey explains he sees it as Organizational Behavior: A Practical, Problem-Solving Approach LO 13-1 Describe how an integrated model of leadership helps you become an effective leader. LO 13-2 Explain how using trait theories can improve your leadership skills. LO 13-3 Describe four categories of leadership behaviors. LO 13-4 Describe two theories of contingency leadership. LO 13-5 Describe how to use transformational leadership to work with others. LO 13-6 Compare more recent approaches to leadership theory. LO 13-7 Describe the implications of leadership effectiveness for you and managers. After reading this chapter, you should be able to: Leadership Effectiveness13 The Organizing Framework shown in Figure 13.1 summarizes what you will learn in this chapter. It shows a greater number of total inputs and processes than past chapters. This indicates that effective leadership is not a simple activity. It requires that individuals possess a host of person factors including specific traits, skills, and experience. It further requires an understanding of how a variety of situation factors such as organizational culture and structure affect individual, group/team, and organizational level processes. Ja n H av lic ek /J oh ny 87 /1 23 RF Organizational Behavior: A Practical, Problem-Solving Approach 507Leadership Effectiveness CHAPTER 13 Figure 13.1 shows there are five key forms of individual level leadership you will learn about. They are: task-oriented leadership, relationship-oriented leadership, pas- sive leadership, transformational leadership, and leader-member exchange. Each of these types of leadership rely on different types of leader behavior and they all in turn affect a number of individual, group/team, and organizational-level outcomes. The large number of outcomes shown in Figure 13.1 underscores the importance of lead- ership. Research demonstrates that effective leadership impacts individual, group/ team, and organizational performance. FIGURE 13.1 Organizing Framework for Understanding and Applying OB INPUTS PROCESSES OUTCOMES Person Factors • Traits • Skills • Gender • Prototypes • Ethical beliefs and values • Experience • Self-concept Situation Factors • Organizational culture • Organizational climate • Task structure • Work group dynamics • Leader’s personality and style • Trust between leaders and followers • Quality of followers Individual Level • Task-oriented leadership • Relationship-oriented leadership • Passive leadership • Transformational leadership • Leader-member exchange Group/Team Level • Task-oriented leadership • Relationship-oriented leadership • Passive leadership • Transformational leadership • Leader-member exchange Organizational Level • Task-oriented leadership • Relationship-oriented leadership • Passive leadership • Transformational leadership Individual Level • Task performance • Work attitudes • Well-being/flourishing • Citizenship behavior/ counterproductive behavior • Turnover • Career outcomes • Creativity Group/Team Level • Group/team performance • Group satisfaction • Group collaboration Organizational Level • Accounting/financial performance • Customer satisfaction • Corporate reputation ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. Organizational Behavior: A Practical, Problem-Solving Approach 508 Winning at Work Learning to Lead Step 3: Develop a Learning Goal Orientation In Chapter 6 we discussed the difference between learning goals and performance goals. Learning goals promote learn- ing because they focus on what we can learn from both suc- cess and failure, and they encourage us to seek input, guidance, and coaching from effective leaders. We encour- age you to set learning goals associated with leadership development, such as “learn how to run better meetings,” “learn to improve my influence skills,” or “learn to provide more effective feedback.” We also encourage you to set goals associated with your leadership development. For instance, you might establish a goal to read one leadership book or attend one leadership training course a year. Once you do this, make and execute a plan to achieve your goals. Step 4: Experiment and Seek Feedback Try experimenting in low-risk situations with the different leader behaviors discussed later in this chapter.7 Next, assess the impact of your experimental approach to lead- ership. Seek feedback from those you trust and reflect on what you can learn from your many educational and work experiences. It’s very hard to improve your leadership skills without getting feedback. You may also find that some of your colleagues, or even a future boss, may be reluctant to provide accurate and honest feedback. If you feel your feedback is unrealistically positive, push for more details about how you can improve. A recent experimental study showed that leadership effectiveness increased over time for students who consistently reflected on what they could learn from their experiences.8 Leadership effectiveness is more a function of your behav- ior than a set of traits you are born with. This means leader- ship skills can be learned, a conclusion supported by research.1 Step 1: How Can I Begin the Learning Process? We believe effective leaders lead from the inside out. In other words, self-leadership, or management of your own life, is a prerequisite for being a good leader. How can you lead others if you can’t lead yourself? This is where self- awareness matters, by helping you understand your values, motives, and behaviors. For example, a Hewlett Packard report shows that women tend not to apply for promotions unless they are already 100 percent qualified, while men will apply while meeting only 60 percent of requirements. Such underestimations of their abilities can reduce wom- en’s career outcomes.2 The benefits of self-awareness are the reason we include so many Self-Assessments in this book. If you want to learn how to lead, the first step is to identify the type of leader behaviors you tend to use.3 The best way to do this is by getting feedback from others about your leadership during the course of your career.4 Without feedback, it is very hard to improve. Step 2: Claim a Leader Identity The way we think of ourselves, our identity, affects our will- ingness to take on leadership roles. This means that to be a leader, you need to see yourself authentically as a leader, even in a small way.5 You can do this in three ways. The first is to take a direct approach, in which you refer to your- self as a leader of some group, project, or task or engage in typical leadership acts. For example, if you are meeting with a student group to complete an assignment, you can walk into the meeting with an agenda and then start run- ning the meeting. The second way to see yourself as a leader is to stake indirect claims of leadership, such as sit- ting at the head of the table for a meeting, mentioning your relationship with recognized leaders, or dressing the part.6 The third way entails acting or behaving in ways that meet people’s expectations about effective leadership. For example, many people perceived that effective lead- ers use styles that emphasize empowerment, fairness, compassion, and supportiveness. You are more likely to be perceived as a leader if you display these styles. What’s Ahead in This Chapter Improving your leadership skills will enhance both your personal and professional life. The good news is that leadership is available to all. Genetics and privilege neither guarantee leadership abilities, nor are they required. We are about to help you navi- gate the many theories of leadership, grasp how leadership traits and behaviors can be learned and developed, identify and apply styles of leadership, and finally apply what you learn about leadership to being a better leader and follower and more effec- tive at any level in an organization. Organizational Behavior: A Practical, Problem-Solving Approach 509Leadership Effectiveness CHAPTER 13 THE BIGGER PICTURE You’re about to learn why leadership is both an input and a process in the Organizing Framework for Understanding and Applying OB. Organizations can’t really start or sustain operations without leadership. You’ll acquire an overall model of leadership that integrates the many leadership theories that have been proposed. Then you’ll hone your understanding of effective leadership and parse the difference between leading and managing. 13.1 MAKING SENSE OF LEADERSHIP THEORIES “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” —John Quincy Adams Adams’s words underscore the value of leadership. Whether at home or work, effective leadership matters! A recent study spanning 18,000 firm-years revealed that the impact of individual chief executives on corporate financial performance has increased over the last 60 years.9 Leadership  is “a process whereby an individual influences a group of individu- als to achieve a common goal.”10 As Adams suggested, you do not need to have a formal position of authority to be a leader. Anyone who exerts influence over others in the pursuit of organizationally relevant matters is a leader. This definition underscores the broad impact leaders have on organizations. Consider that employee disengagement in the United States costs $483 billion to $605 billion each year, and ineffective leadership is a key driver of disengagement.11 Researchers also have estimated that half of all managers around the world are incompetent or ineffective.12 Those are pretty discouraging statistics. Further, results from a recent global survey of more than 9,000 leaders from 31 countries suggested these negative trends are not going away. In fact, 80 percent of respondents said that leadership was a very important issue and that “21st-century leaders” face unique challenges to address critical new competen- cies, such as leading through change, understanding digital and AI-driven technologies, and embracing ambiguity and uncertainty.13 The topic of leadership has generated more OB-related research than any other topic except motivation, so there are far too many leadership theories to cover in this one chapter. Instead we have created a model that integrates the major theories. We begin there and then focus on theories that have received some level of research support. An Integrated Model of Leadership Figure 13.2 presents an integrated model of leadership. Starting at the far right of the model, you see that leadership effectiveness is the outcome we explain in this chapter. The center of the model shows this outcome is influenced by four types of leadership behavior: task-oriented, relationship-oriented, passive, and transformational. Effective Describe how an integrated model of leadership helps you become an effective leader. LO 13-1 Organizational Behavior: A Practical, Problem-Solving Approach 510 PART 2 Groups leadership also is affected by a combination of task-oriented traits and interpersonal attributes (the left side of the model). Recall from Chapter 3 that individual differences significantly affect performance, and they vary from relatively fixed (cognitive ability) to somewhat flexible (self-efficacy). For example, a recent study of 19,000 people found that gender predicted leadership potential over the past 25 years—men were more likely than women to become leaders—although that result is slowly beginning to change.14 Demographics Situation Factors Intelligence and Skills Leadership E�ectiveness Task-oriented Traits Interpersonal Attributes Leader Behaviors • Task-oriented • Relationship-oriented • Passive • Transformational FIGURE 13.2 An Integrated Model of Leadership McGraw-Hill Global Education Holdings, LLC Do singers (from left: Macklemore, Mary Lambert, Madonna, Ryan Lewis, Queen Latifah) exert leadership when they perform? Would a group of well-known singers like this exert more influence than one singer performing alone? Why or why not? Kevin Winter/WireImage/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 511Leadership Effectiveness CHAPTER 13 Moreover, Figure 13.2 shows how demographic characteristics such as gender and age, task-oriented traits, and interpersonal attributes influence an individual’s use of leader behaviors. The final component in leadership effectiveness, situation factors, suggests that different situations call for different leader behaviors. That is, effective leadership requires using the right behavior at the right time. What Is the Difference between Leading and Managing? Bernard Bass, a leadership expert, concluded, “Leaders manage and managers lead, but the two activities are not synonymous.”15 Broadly speaking, managers typically perform functions associated with planning, investigating, organizing, and control, and leaders focus on influencing others. Leaders inspire others, provide emotional support, and try to get employees to rally around a common goal. Leaders also play a key role in creating a vision and strategic plan for an organization. Managers, in turn, are charged with implementing the vision and plan. We can draw several conclusions from this division of labor. First, good leaders are not necessarily good managers, and good managers are not necessarily good leaders. Second, effective leadership requires effective managerial skills at some level. For example, Nissan’s former CEO, Carlos Ghosn, was arrested in Tokyo for allegedly underreporting his income by millions of dollars over the last decade.16 In contrast, both Beth Ford, CEO of Land O’Lakes, and Chip Bergh, CEO of Levi Strauss, are recognized for their use of good managerial skills when implementing corporate strategies.17 Do you want to lead others or understand what makes a leader tick? Then take Self- Assessment 13.1. It provides feedback on your readiness to assume a leadership role and can help you consider how to prepare for a formal leadership position. Assessing Your Readiness to Assume a Leadership Role Please be prepared to answer these questions if your instructor has assigned Self-Assessment 13.1 in Connect. 1. Do you agree with your results? 2. If you scored below 60 and desire to become a leader, what might you do to increase your readiness to lead? 3. What is your biggest take-away from these results? SELF-ASSESSMENT 13.1 CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 512 PART 2 Groups 13.2 TRAIT THEORIES: DO LEADERS POSSESS UNIQUE TRAITS AND PERSONAL CHARACTERISTICS? Trait theory is the successor to what was once called the “great man” theory of leader- ship. This approach was based on the assumption that leaders such as Abraham Lincoln, Martin Luther King Jr., and Angela Merkel are born with some innate ability to lead. In contrast, trait theorists believe leadership traits are not inborn but can be developed through experience and learning. The trait approach  attempts to identify personality characteristics or interpersonal attributes that differentiate leaders from followers. What Core Traits Do Leaders Possess? Researchers have attempted to identify leadership traits for nearly 100 years. It has been a frustrating pursuit that has not led to a consistent answer. Some have claimed that effective leaders are taller, bald, or wear glasses.18 But if instead you believe in drawing conclusions based on science, OB researchers offer you a statistical technique called meta-analysis. A meta-analysis is a statistical procedure that effectively computes an average relationship between two variables. Table 13.1 is a summary of what we know from this research. Note the emphasis on task-orientation and the expansion into interpersonal attributes.19 Explain how using trait theories can improve your leadership skills. LO 13-2 THE BIGGER PICTURE Trait theories attempt to identify personal characteristics that differentiate leaders from fol- lowers. They represent inputs within the Organizing Framework. After identifying key traits established by research, we discuss the role of gender and perceptions in determining what it takes to be an effective leader. POSITIVE TASK-ORIENTED TRAITS POSITIVE/NEGATIVE INTERPERSONAL ATTRIBUTES • Intelligence • Extraversion (+) • Conscientiousness • Agreeableness (+) • Open to Experience • Communication Skills (+) • Emotional Stability • Emotional Intelligence (+) • Narcissism (−) • Machiavellianism (−) • Psychopathy (−) TABLE 13.1 Key Task-Oriented Traits and Interpersonal Attributes Organizational Behavior: A Practical, Problem-Solving Approach 513Leadership Effectiveness CHAPTER 13 All the traits and interpersonal attributes listed in Table 13.1 have been defined else- where in this book except for the “dark triad” traits of narcissism, Machiavellianism, and psychopathy.20 • Narcissism  consists of “a self-centered perspective, feelings of superiority, and a drive for personal power and glory.”21 Individuals with this trait have inflated views of themselves, fantasize about being in control of everything, and like to attract the admira- tion of others. It’s thus not surprising that narcissists tend to emerge as leaders, even though they can promote counterproductive work behaviors from others.22 • Machiavellianism  is the use of manipulation, a cynical view of human nature, and a moral code that puts results over principles. It’s not surprising that indi- viduals who believe everyone lies to get what they want and that it’s necessary to cheat to get ahead are less likely to garner support from others. • Psychopathy  is characterized by a lack of concern for others, impulsive behavior, and a lack of remorse or guilt when your actions harm others. This type of person is toxic at work. We can draw two more conclusions from Table 13.1. First, when selecting leaders, it’s more useful to consider personality than intelligence.23 Second, displaying the “dark triad” traits at work can lower your performance ratings and even get you demoted or fired.24 What Role Does Emotional Intelligence Play in Leadership Effectiveness? Recall from Chapter 3 that emotional intelligence is the ability to manage yourself and your relationships in mature and constructive ways. Scientific evidence supports two conclu- sions about emotional intelligence and leadership:25 1. Emotional intelligence is an input to transformational leadership. In other words, emo- tional intelligence helps managers effectively enact the behaviors associated with transformational leadership, discussed later in this chapter. 2. Emotional intelligence has a small, positive, and significant association with leadership  effectiveness. This suggests that emotional intelligence will help you lead more effec- tively, but it is not the secret elixir of leadership effectiveness. Bashar al-Assad, Syria’s long-serving president, has been linked to chemical bombings that have killed thousands of people, including children. Do you think al-Assad pos- sesses any of the “dark side” traits? Joseph Eid/Getty Images Angela Merkel has been Germany’s Chancellor for nearly 15 years. Which positive traits does she likely possess? Leon Neal/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 514 PART 2 Groups Do Women and Men Display the Same Leadership Traits? The increase in the number of women in the workforce has generated much interest in understanding the similarities and differences between female and male leaders. Research reveals the following four conclusions: 1. Men were observed to display more task leadership and women more relationship leadership.26 2. Women used a more democratic or participative style than men, and men used a more autocratic and directive style.27 3. Female leadership was associated with more cohesion, cooperative learning, and participative communication among team members.28 4. Peers, managers, direct reports, and judges/trained observers rated women executives as more effective than men. Men rated themselves as more effective than women evaluated themselves.29 How Important Are Knowledge and Skills? Knowledge and skills are extremely important! Table 13.2 identifies the four basic skills leaders need, according to researchers. Do Perceptions Matter? Perceptions do matter, according to implicit leadership the- ory. Implicit leadership theory  proposes that people have beliefs about how leaders should behave and what they should do for their followers. These beliefs are summarized in a leadership prototype.30 A leadership prototype  is a mental representation of the traits and Speaker of the House of Representatives Nancy Pelosi is the first woman in U.S. history to hold this leadership position. In fact, Pelosi has held the Speaker’s position twice. As Speaker, Pelosi is third in the line (after the President and Vice President) of succession to the presidency. It would seem that Pelosi possesses the positive traits associated with leadership effectiveness. Mark Wilson/Getty Images WHAT LEADERS NEED AND WHY Cognitive abilities to identify problems and their causes in rapidly changing situations. Leaders must sometimes devise effective solutions in short time spans with limited information. Interpersonal skills to influence and persuade others. Leaders need to work well with diverse people. Business skills to maximize the use of organizational assets. Leaders increasingly need business skills as they advance up through an organization. Strategic skills to draft an organiza- tion’s mission, vision, strategies, and implementation plans. Strategic skills matter most for individuals in the top ranks in an organization. TABLE 13.2 Four Basic Skills for Leaders SOURCE: Mumford, Troy V., Michael A. Campion, and Frederick P. Morgeson. “Leadership Skills Strataplex: Leadership Skill Requirements across Organizational Levels.” Leadership Quarterly 18 (2007): 154–66. https://doi:10.1016/j.leaqua.2007.01.005. Organizational Behavior: A Practical, Problem-Solving Approach 515Leadership Effectiveness CHAPTER 13 behaviors people believe leaders possess. For example, a recent study identified a leadership prototype of physically imposing men: that they possess leadership ability and thus are granted greater status.31 We tend to perceive someone as a leader who exhibits traits or behaviors consistent with our prototypes. The person you voted for in the 2016 presidential election most likely exhibited traits contained in your leadership prototype. A pair of researchers recently investigated leadership prototypes regarding facial appearance. Here is what they found: People prefer leaders with dominant, masculine-looking faces in times of war and conflict, yet they prefer leaders with more trustworthy, feminine faces in peacetime. In addition, leaders with older-looking faces are preferred in traditional knowledge domains, whereas younger-looking leaders are preferred for new challenges.32 As this study’s results suggest, we all need to be mindful that our prototypes can bias our evaluation of leaders. As result of their extensive behavioral research, Jim Kouzes and Barry Posner devel- oped a leadership model based on five common behaviors leaders exemplify that reflect honesty and integrity: (1) Model the way—establish principles about the way people should be treated; (2) inspire a shared vision—believe you can make a difference and envision what your organization can become; (3) challenge the process—look for ways to shake things up to improve the organization; (4) enable others to act—foster collabora- tion and build teams that engage others; and (5) encourage the heart—recognize the contributions of others.33 What Are the Take-Aways from Trait Theory? Trait theory offers us four conclusions. 1. We cannot ignore the implications of leadership traits. Traits play a central role in the way we perceive leaders, and they do ultimately affect leadership effectiveness. For example, the Cardiac Rhythm Disease Management Group within Medtronic Inc. identified nine types of traits and skills necessary for leaders (such as giving clear performance feedback and being courageous). The company then designed a leader- ship development program to help its employees learn and apply these traits.34 More companies are using management development programs to build a pipe- line of leadership talent. Total U.S. spending by organizations for leadership training was $87.6 billion for 2018, a 6 percent decrease from the previous year.35 2. The positive and “dark triad” traits shown in Table 13.1 suggest the qualities you should  cultivate and avoid if you want to assume a leadership role in the future. Personality tests, discussed in Chapter 3, and other trait assessments can help evaluate your strengths and weaknesses on these traits. The website for this book contains a host of tests you can take for this purpose. 3. Organizations may want to include personality and trait assessments in their selection  and promotion processes. For example, Nina Brody, head of talent for Take Care Health Systems in Conshohocken, Pennsylvania, used an assessment tool to assist in hiring nurses, doctors, medical assistants, and others with traits that fit the organiza- tion’s culture.36 Of course, companies should match only valid leadership traits. 4. A global mind-set  is  an  increasingly  valued  task-oriented  trait. As more companies expand their international operations and hire more culturally diverse people for domestic operations in the United States, they want to enhance employees’ global mind-set.37 A global mind-set is the belief in one’s ability to influence dissimilar others in a global context. For example, MasterCard and InterContinental Hotels Group implemented leadership development programs aimed at enhancing employees’ cross-cultural awareness and ability to work with people from different countries.38 Organizational Behavior: A Practical, Problem-Solving Approach 516 PART 2 Groups 13.3 BEHAVIORAL THEORIES: WHICH LEADER BEHAVIORS DRIVE EFFECTIVENESS? As you might expect, leaders rely on many different types of behaviors to influence others and to accomplish goals. This realization spurred the behavioral styles approach, which attempts to identify the unique behaviors displayed by effective leaders. Researchers have boiled down the unique leader behaviors into four categories: task- oriented, relationship-oriented, passive, and transformational (see Figure 13.2). This sec- tion discusses the first three, while transformational leadership is discussed later in the chapter. Task-Oriented Leader Behavior The primary purpose of task-oriented behaviors is to assist others in accomplishing their goals and those of the work unit.39 Although a host of behaviors fall under this category, such as planning, clarifying, monitoring, and problem solving, researchers have mainly studied two: initiating structure and transactional leadership.40 Initiating Structure Researchers at Ohio State University defined initiating struc- ture  as leader behavior that organizes and defines what group members should be doing to maximize output. You witness this behavior style when someone organizes a team meeting for a class project or seeks input from a knowledgeable source to help guide the team’s work. This form of leadership has a moderately strong positive relationship with measures of leadership effectiveness.41 Transactional Leadership Transactional leadership  focuses on clarifying employees’ role and task requirements and providing followers with positive and negative rewards contingent on performance. Transactional leadership includes the fundamental managerial activities of setting goals, monitoring progress toward goal achievement, and rewarding and punishing people for their level of goal accomplishment.42 You can see that transactional leadership is based on using rewards and punishment to drive motivation and performance. Research supports a positive association between transactional leadership and leader effectiveness and group performance.43 Dabo Swinney, head football coach at Clemson University, uses task-oriented leader- ship (see the OB in Action Box). His teams have won two national championships in recent years, attesting to his effectiveness as a leader.44 Describe four categories of leadership behaviors. LO 13-3 THE BIGGER PICTURE Behavioral style theories identify key leader behaviors believed to affect leadership effec- tiveness. We’ll focus on four leader behaviors confirmed to differentiate effective from ineffective leaders: task-oriented behavior, relationship-oriented behavior, passive leadership, and transformational leadership. Organizational Behavior: A Practical, Problem-Solving Approach 517Leadership Effectiveness CHAPTER 13 After a drought of almost 40 years, college football coach Dabo Swinney recently restored Clemson University’s Tigers to the national championship in a dramatic upset that some observers have called a game for the ages. Later, in his speech on the White House lawn following the celebration traditionally offered to the winning team, Swinney outlined his approach to coaching the team to victory. It’s not a coincidence that in doing so he also described the values many task-oriented leaders live by. Here are the highlights: 1. “Run your race in such a way as to win.” 2. Quoting George Washington Carver, Swinney said, “Do the common things in an uncommon way, and you will command the respect of the world.” 3. His next point was a reminder that life consists not of just the big moments, like winning cham- pionships and visiting the White House, but also of all the little moments in between and how we live them. 4. “Continue to be ‘all in.’ Continue to apply ‘best is the standard.’ Continue to be a person of excel- lence in everything you do.” 5. Swinney concluded by reminding his team that their achievements “pale in comparison to the daily commitments it took to get there.”45 Indeed, the entire campus and the town of Clemson, South Carolina, have prospered dramatically since Swinney was hired in 2008 and began steadily reviv- ing the football team’s fortunes. More and better stu- dents are applying to the university, donations to all its teams are growing, new construction is under way across the campus, and salaries in town are inching up.46 Swinney’s leadership approach must be work- ing: The Tigers won the national championship again in January 2019.47 YOUR THOUGHTS? 1. In what ways do Swinney’s five points exemplify task-oriented leader behavior? 2. What aspects of initiating structure and transactional leadership can you find in the five points? 3. What aspects of Swinney’s approach do you see as most applicable to a business organization, and why? Clemson University football coach Dabo Swinney celebrates his team’s NCAA College Football Championship in 2019. Michael Zagaris/Getty Images Dabo Swinney Uses Task-Oriented Leadership to Reclaim the Championship for Clemson OB in Action Organizational Behavior: A Practical, Problem-Solving Approach 518 PART 2 Groups Relationship-Oriented Leader Behavior The purpose of relationship-oriented leadership is to enhance employees’ skills and create positive work relationships among coworkers and between the leader and his/her employees.48 OB researchers have investigated the impact of four relationship-oriented behaviors: • Consideration • Empowerment • Servant-leadership • Ethical leadership Consideration Consideration  is leader behavior that creates mutual respect or trust and prioritizes group members’ needs and desires. Consideration promotes social interactions and identification with the team and leader. In fact, researchers at Ohio State (who identified consideration) initially proposed that a high-initiating structure, high-consideration style would be the best style of leadership. While research results did not support this bold prediction, considerate leader behavior has a moderately strong pos- itive relationship with measures of leadership effectiveness.49 What use do you make of initiating structure and consideration when interacting with student peers or work colleagues? Which of these two types of leader behavior is a strength, an opportunity, or a weakness for you? You can answer these questions by taking Self- Assessment 13.2. Assessing Your Task- and Relationship-Oriented Leader Behavior Please be prepared to answer these questions if your instructor has assigned Self- Assessment 13.2 in Connect. 1. Are you better at using initiating structure or consideration? 2. Looking at your two lowest scores for each type of leader behavior, suggest ways to improve your leadership. SELF-ASSESSMENT 13.2 CAREER READINESS Empowering Leadership To explain the positive effects of empowering leadership, we need to define two terms. Empowering leadership  represents the leader’s ability to create perceptions of psychological empowerment in others. Psychological empowerment,  employees’ belief that they have control over their work, is believed to drive intrinsic motivation.50 Marc Benioff, co-founder and CEO of Salesforce, has learned to be an empowering leader. A business analyst who tracks Salesforce for Pivotal Research says Benioff “knows he can be a force for good and a force for change.”51 Leaders increase their followers’ psychological empowerment by engaging in behav- iors that enhance perceptions of meaning, self-determination or choice, competence, and impact. Let’s consider how Benioff creates psychological empowerment at Salesforce, the tech company he co-founded 20 years ago. • Leading for meaningfulness. Managers lead for meaningfulness by inspiring their employees and modeling desired behaviors. One way to do this is by helping employees to identify their passions at work and creating an exciting organizational vision employees feel connected to. Benioff demonstrated this when he campaigned Organizational Behavior: A Practical, Problem-Solving Approach 519Leadership Effectiveness CHAPTER 13 vigorously for Proposition C in San Francisco, a measured that called on companies in the city with revenue over $50 million to pay a tax toward homeless programs. In addition to spending $8 million to help pass the bill, Benioff convened meetings with local business leaders, nonprofit organizations, and experts on homelessness before the election. He also tweeted about the proposed legislation more than 50 times to show his support. Despite strong opposition from several high-profile tech companies headquartered in San Francisco, Prop C passed easily.52 • Leading  for  self-determination  or  choice. Managers lead for choice by delegating meaningful assignments and tasks. When Benioff took a two-week vacation—unplugged and unreachable—he had a lot of time to meditate and had a revelation: He’s too busy. In addition to running a 30,000-person com- pany, a full-time endeavor for most people, Benioff is also deeply involved in philanthropy, mentoring other business leaders, and making his voice heard on various social and political issues. He decided to promote Keith Block, Sale- force’s chief operating officer, to become co-CEO of the company. According to Benioff, the move was a “divide and conquer strategy,” virtually unheard of in the software industry.53 • Leading for competence. Leading for competence means supporting and coaching employees. Managers first need to make sure employees have the knowledge needed to successfully perform their jobs. Deficiencies can be handled through training and mentoring. Managers can also combine positive feedback and sincere recognition with challenging tasks to fuel employees’ intrinsic motivation. On their first day at Salesforce, new employees spend the afternoon doing service work, as part of the company’s “giving back” culture.54 • Leading  for  progress. Managers lead for progress by monitoring and rewarding others. Over the past several years, Benioff directed Salesforce to spend more than $6 million dollars to ensure that all employees were paid fairly, regardless of gender, race, or ethnicity. In addition, he announced he would not hold meetings unless 30 percent of the attendees were women, a strategy he believed would make it like- lier that female employees would be seen as leaders and improve their opportunities for promotion within the company.55 Research supports the use of empowering leadership. It fosters psychological empower- ment, which in turn improves outcomes such as intrinsic motivation, creativity, career self-efficacy and satisfaction, performance, and team collaboration.56 Servant-Leadership The term servant-leadership was coined in 1970 by Robert Green- leaf, who believed great leaders act as servants and make the needs of others, including employees, customers, and community, their first priority. Servant-leadership  focuses on increased service to others rather than to oneself.57 Because the focus of servant- leadership is on serving others, servant-leaders are less likely to engage in self-serving behaviors that hurt others. Embedding servant-leadership into an organization’s culture requires actions as well as words. EXAMPLE Afni, Inc., a global customer contact services provider, launched a lead- ership development program aimed at enhancing both servant and empowering leadership. Heather Cushing, senior manager of leadership development, said the Salesforce co-founder Marc Benioff is an empowering leader. Inspiring employees and modeling desired behaviors, Benioff has made valuable contributions not only to his staff but also to his San Francisco community. Tim Mosenfelder/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 520 PART 2 Groups goal of the program is to help managers “exhibit an attitude of servant-hood, caring for the coaching and development of each level reporting up through them.” Afni wants managers to empower “others to reach their full potential, while also inspiring teamwork and loyalty and improving employee engagement.”58 Servant-leadership is expected to promote leadership effectiveness because it focuses on providing support and growth opportunities to employees. As you may recall from our discussion of perceived organizational support (POS) in Chapter 2, people generally recip- rocate with increased effort toward collective performance when they feel supported. Servant-leaders have the characteristics listed in Table 13.3. Does your current manager display the traits shown in Table 13.3? If yes, you are likely to be happier, more productive, more creative, and more willing to go above and beyond your role. This is precisely what researchers have uncovered.59 Self- Assessment 13.3 measures the extent to which you possess a serving orientation. Results from the assessment will enhance your understanding of what it takes to really be a servant-leader. TABLE 13.3 Characteristics of the Servant-Leader SERVANT-LEADERSHIP CHARACTERISTICS DESCRIPTION 1. Listening Servant-leaders focus on listening to identify and clarify the needs and desires of a group. 2. Empathy Servant-leaders try to empathize with others’ feelings and emotions. An individual’s good intentions are assumed even when he or she performs poorly. 3. Healing Servant-leaders strive to make themselves and others whole in the face of failure or suffering. 4. Awareness Servant-leaders are aware of their own strengths and limitations. 5. Persuasion Servant-leaders rely more on persuasion than on positional authority when making decisions and trying to influence others. 6. Conceptualization Servant-leaders take the time and effort to develop broader-based conceptual thinking. They seek an appropriate balance between a short-term, day-to-day focus and a long-term, conceptual orientation. 7. Foresight Servant-leaders have the ability to foresee outcomes of a current course of action or situation. 8. Stewardship Servant-leaders assume they are stewards of the people and resources they manage. 9. Commitment to the growth of people Servant-leaders commit to people beyond their immediate work role. They foster an environment that encourages personal, professional, and spiritual growth. 10. Interest in building community Servant-leaders strive to create a sense of community both within and outside the work organization. SOURCES: Spears, Larry C. “Character and Servant Leadership: Ten Characteristics of Effective, Caring Leaders.” The Journal of Virtues & Leadership 1, no. 1 (2010): 25–30; and Spears, Larry C. Reflections on Leadership: How Robert K. Greenleaf’s Theory of Servant-Leadership Influenced Today’s Top Management Thinkers. New Jersey: John Wiley & Sons, Inc., 1995. Organizational Behavior: A Practical, Problem-Solving Approach 521Leadership Effectiveness CHAPTER 13 Bono, lead singer of the Irish band U2, is a good example of a servant-leader. Here is what reporter Ellen McGirt had to say about him. EXAMPLE In 2005 he started the One campaign, a volunteer-led movement to influence lawmakers to commit resources to funding programs that truly change the lives of the poor—from Pepfar (which continues to provide lifesaving antiretroviral drugs); to the Global Fund, the Geneva-based not-for-profit that finances select local programs fighting AIDS, TB, malaria; to Gavi, a public-private partnership that pro- vides needed vaccines to kids. Bono’s motto is adapted from St. Francis, who said, “Go into the world to preach the gospel, and if necessary, use words.” Bono com- mented that “It’s about being useful, and that’s what I want to be.”60 Ethical Leadership OB scholars are interested in studying ethical leadership. Ethical leadership represents normatively appropriate behavior that focuses on being a moral role model. This includes communicating ethical values to others, rewarding ethi- cal behavior, and treating followers with care and concern.61 Ethical leadership is clearly driven by personal factors related to our beliefs and val- ues. It also has a reciprocal relationship with an organization’s culture and climate. In other words, an ethical culture and climate promote ethical leadership, and ethical leader- ship in turn promotes an ethical culture and climate. Although ethical leadership is a rela- tively new area of study in OB, research already shows that it is positively related to employee job satisfaction, organizational commitment, organizational citizenship behav- ior, motivation, and task performance. It also is negatively associated with job stress, coun- terproductive work behavior, and intentions to quit.62 It appears that ethical leadership has many positive benefits. Abusive Supervision Although most managers exhibit positive behavior toward their direct reports and others in the organization, there are some who demonstrate abusive behavior in the workplace. Abusive supervision is the sustained display of hostile verbal and nonverbal behav- ior by managers.63 Examples of such behavior can include telling subordinates their ideas are stupid; criticizing them in front of colleagues and other managers; reminding them of past errors and missteps; and giving them the silent treatment.64 Research suggests that abusive supervision affects more than 13 percent of U.S. workers, although that percentage may be understated because of employees’ fear of retaliation if they speak up. Abusive supervision may also increase job dissatisfaction, manifest as retaliatory behavior on the part of the abused worker, decrease productivity and innovation, and actually encourage abused employees to act out or demonstrate the same bad behavior as their supervisors to colleagues and others outside of work. In addi- tion, costs of abusive supervision to organizations are estimated at nearly $24 billion annually.65 Assessing Your Servant Orientation  Please be prepared to answer these questions if your instructor has assigned Self- Assessment 13.3 in Connect. 1. To what extent do you possess a servant orientation? Are you surprised by the results? 2. How might you demonstrate more servant-leadership in your teams at work or school? Be specific. SELF-ASSESSMENT 13.3 CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 522 PART 2 Groups Research suggests the reasons for supervisors’ abusive behavior may vary.66 Regardless of the reasons, organizations can implement strategies to eliminate abusive behavior including • An anonymous tip line that employees can call to report abuse. • Written company policies prohibiting abusive behavior. • Acknowledgment by senior managers that there is no place for abusive behavior in the company’s culture.67 Unfortunately, not all supervisors and managers recognize such inappropriate behavior, as described in the OB in Action feature. It’s hard to imagine a leader taking abuse of employees to the extreme lengths that a court case alleges Joyce Fogleman did. According to a federal suit filed by a former employee, in the “sexually hostile work environ- ment” at J&S Professional Pharmacy in West Frankfort, Illinois, Fogleman, who has been the pharmacy’s presi- dent and owner for almost 25 years, demanded employees line up and kiss her on the mouth to receive their pay checks, used public spanking as a disciplinary measure, often went about the workplace naked; and made comments about employees’ physical attributes in front of other employees and customers. The former employee had worked at J&S for 12 years and was under the supervision of Fogleman’s sister at the time. She claims that after seeking medical and psychiatric help to deal with high blood pressure, anxiety, and depression as a result of the situation at work, she was unlawfully fired in March 2017.68 Fogleman, who has supported many local charities and won various local business awards, told News- week that the claims in the suit were “just crazy,” “totally bogus,” and “ridiculous,” and that the alleged events “Never happened.”69 Her company employs 13 people and has annual revenues of nearly $5 million.70 Fogleman also said the former employee bringing suit, Wendy Blades, was not fired, but Blades says not only that she was let go in retaliation but also that she was not the only victim of abuse. At least one other employee backs her claims.71 Meanwhile, Workforce.com made Fogleman its first nominee for the “worst boss of 2019.”72 If the allegations against her are true, her performance will be hard to top. YOUR THOUGHTS? 1. If Blades is being truthful, do Fogleman’s alleged actions fit the definition of abusive leadership? Why or why not? 2. How might Fogleman clear her name if she is innocent? What would she need to do? 3. What do you think would be the likely outcome for J&S Pharmacy if Fogleman were found guilty? Why? Abusive Leadership at a Pharmacy OB in Action What Are the Take-Aways from Behavioral Theory? There are four points to remember about behavioral theory. 1. Behavior is more important than traits when it comes to leaders’ effectiveness.73 Our mantra for leaders is, “Every behavior matters.” 2. Leader behaviors can be systematically improved and developed.74 Organizations should continue to invest in leadership development programs. 3. There is no one best style of leadership. The effectiveness of a particular leadership style depends on the situation at hand. 4. Abusive supervision takes it toll on employees, managers, and the overall organization.  Leaders at all levels of the company must recognize abusive behavior and work together to eliminate it.75 Organizational Behavior: A Practical, Problem-Solving Approach 523Leadership Effectiveness CHAPTER 13 THE BIGGER PICTURE Proponents of contingency leadership believe the effectiveness of leadership behaviors depends on the situation. Makes common sense! Contingency theories help managers recognize when they should use particular types of leader behavior. Two that have been widely researched are Fred Fiedler’s contingency model and Robert House’s path-goal theory.  13.4 CONTINGENCY THEORIES: DOES THE EFFECTIVENESS OF LEADERSHIP DEPEND ON THE SITUATION? Contingency leadership theories grew out of the realization that there is no single “best” style of leadership. Contingency theories  propose that the effectiveness of a particu- lar style of leader behavior depends on the situation. As situations change, different styles become appropriate. As you will learn, however, the application of contingency theories is more complicated than it appears. Let’s examine two contingency theories: Fiedler’s contingency model and House’s path-goal theory. Fiedler’s Contingency Model The oldest contingency-based theory was developed by Fred Fiedler. He labeled the model contingency theory  because it is based on the premise that a leader’s effectiveness is contingent on the extent to which the leader’s style matches characteristics of the situation at hand. To understand how this matching process works, we’ll consider the key leadership styles Fiedler identified and the situational variables that constitute what he labeled situational control.76 Two Leadership Styles: Task Orientation and Relationship Orientation Fiedler believed leaders have one dominant or natural leadership style that is resistant to change—either task-motivated or relationship-motivated. Recall these two orienta- tions from our earlier discussion in this chapter. Task-motivated leaders focus on accomplishing goals, whereas relationship-motivated leaders are more interested in developing positive relationships with followers. Fiedler developed the least preferred coworker (LPC) scale to measure the extent to which an individual takes a task- or relationship-based approach toward leadership. The scale asks you to evaluate a coworker you least enjoy working with on 16 pairs of opposite characteristics (such as friendly/unfriendly and tense/relaxed). High scores on the survey (high LPC) indicate that an individual is relationship-motivated, and low scores (low LPC) suggest a task- motivated style. Three Dimensions of Situational Control Situational control refers to the amount of control and influence the leader has in her or his immediate work environment. There Describe two theories of contingency leadership. LO 13-4 Organizational Behavior: A Practical, Problem-Solving Approach 524 PART 2 Groups are three dimensions of situational control: leader–member relations, task structure, and position power. • Leader–member relations  describe the extent to which the leader has the support, loyalty, and trust of the work group. This dimension is the most impor- tant component of situational control. Good leader–member relations suggest that the leader can depend on the group, thus ensuring members will try to meet the leader’s goals and objectives. • Task structure  measures the amount of structure contained within tasks per- formed by the work group. For example, a managerial job contains less structure than that of a bank teller. Because there are guidelines for the way structured tasks should be completed, the leader has more control and influence over employees performing such tasks. This dimension is the second-most important component of situational control. • Position power  is the leader’s formal power to reward, punish, or otherwise obtain compliance from employees. The dimensions of situational control vary independently, forming eight combinations in which control varies from high to low (see Figure 13.3). High control implies that the leader’s decisions will produce predictable results because the leader has the ability to influence work outcomes. Low control implies that the leader’s decisions may not influ- ence work outcomes because the leader has very little influence. When Is Each Style Most Effective? No leadership style is effective in all situa- tions. Figure 13.3 illustrates when task- and relationship-motivated leadership are expected to be most effective. • Task-oriented leadership should be most effective in either high-control (situations I–III in Figure 13.3) or low-control situations (situation VIII). • Relationship-oriented leadership should be most effective in situations of moderate control (situations IV–VII in Figure 13.3). FIGURE 13.3 Representation of Fiedler’s Contingency Model Situational Control Leader–Member Relations Task Structure Position Power Situation Optimal Leadership Style Task- Motivated Leadership Relationship- Motivated Leadership Task- Motivated Leadership I II III IV V VI VII VIII Good Good Good High High Low Strong Weak Strong Good Poor Poor Poor Poor Weak Low High High Low Low Weak Strong Weak Strong High-Control Situations Moderate-Control Situations Low-Control Situations SOURCE: “Situational Control and a Dynamic Theory of Leadership.” In Managerial Control and Organizational Democracy, edited by Bert T. King, Siegfried Streufert, and Fred Edward Fiedler. Washington: V. H. Winston, 1978. Organizational Behavior: A Practical, Problem-Solving Approach Barnes & Noble Seeks a Leader Struggling to halt losses from both its online business and its brick-and-mortar stores, the venerable book- seller Barnes & Noble is now trying to find a CEO who can stay in the job for a while. With five CEOs at the helm in the last five years, the company has suffered through chaos and uncertainty while trying to retain its 600 remaining U.S. stores in the face of a long decline. Barnes & Noble’s financial troubles have been caused mainly by the market-dominating success of Amazon and, ironically, a minor resurgence of independent bookstores.80 Most recently, Barnes & Noble fired CEO Demos Parneros, under whose leadership the com- pany’s shares dropped 32 percent in value, over unspecified violations of company policy that were later revealed to be sexual harassment claims and bullying. Parneros, formerly a 30-year veteran of Staples, Inc., has denied any misconduct and blames the company for disapproving of his busi- ness decisions, including a failed plan to sell the company. His countersuit claims defamation and breach of contract. The company’s founder and long-time chair, Leonard Riggio, whom Parneros calls “volatile,” “erratic and unprofessional,” and someone who “refuses to relinquish control,” has said the company must “heal” and will begin the search for a CEO yet again. The company also calls Parneros’ characterization of Riggio “lies and mis- characterizations,” though some industry analysts believe Riggio has been heavy-handed and lacks a vision for the company’s future.81 A group of lead- ers will oversee the chain in the meantime, includ- ing its chief financial officer, chief merchandising offer, and vice president of stores.82 The CEO who preceded Parneros, Ronald Boire, was let go after less than a year in the job, on the grounds that he was not a “good fit” for the company.83 Boire’s tenure had been marked by an expansion of non-book offering such as games and toys and by the introduction of workshops in coding and 3D printing. All these were to bolster a focus on “learning, personal growth and development [that] Problem-Solving Application 525Leadership Effectiveness CHAPTER 13 What should you do if your dominant leadership style does not match the situation? Then, Fiedler suggests, it is better to move to a more suitable situation than to try to change your leadership style. This response is different from that of the behavioral styles approach, which assumes we can learn different leader behaviors. Fiedler believes people cannot change their leadership style. Do you agree with this proposition? Take-Aways from Fiedler’s Model Although research provides only partial support for Fiedler’s model and the LPC scale,77 there are three key take-aways. 1. Leadership effectiveness goes beyond traits and behaviors. The fit between a leader’s style and the situational demands is influential. For example, a recent study found that companies with task-oriented CEOs achieved greater financial performance (higher return on assets) when the company had a relationship-focused culture, whereas firms with relationship-oriented CEOs had higher firm performance in task-focused cultures.78 2. Organizations should attempt to hire or promote people whose leadership styles fit or match situational demands. Bookseller Barnes & Noble has gone through a series of CEOs over the past several years as the company’s founder can’t seem to find a can- didate with the right leadership skills he desires (see the Problem-Solving Application box). 3. Leaders need to modify their style to fit a situation. A recent study found that too much task-oriented leader behavior was viewed negatively by employees, whereas excessive relationship leadership was not. Leaders need to experiment with finding the appro- priate amount of leadership to exhibit in different situations.79 Organizational Behavior: A Practical, Problem-Solving Approach 526 PART 2 Groups House’s Path-Goal Theory A second popular contingency-based theory, proposed by Robert House in the 1970s and revised in 1996, is path-goal theory,  which holds that leader behaviors are effective when employees view them as a source of satisfaction or as paving the way to future satisfaction. Leaders are expected to do this by (1) reducing roadblocks that inter- fere with goal accomplishment, (2) providing the guidance and support employees need, and (3) linking meaningful rewards to goal accomplishment.85 House’s revised model is presented in Figure 13.4. You can see that leadership effectiveness is influenced by the interaction between eight leadership behaviors (see Table 13.4) and a variety of contingency factors. fits with our brand,” Boire told a New York Times interviewer. But the company still racked up losses, especially since the Nook, Barnes & Noble’s entry into the e-book reader market, has stumbled badly, costing the firm more money than it earned.84 Boire had followed Michael Huseby, who resigned in 2015, and William Lynch, who left in 2013. After Boire’s departure, Riggio postponed his retirement to serve as interim CEO, a job he may find himself filling once more. Apply the 3-Step Problem-Solving Approach Step 1: Identify the problem in this case. Step 2: Identify the cause of the problem. What leadership concepts or theories should Barnes & Noble apply when choosing its next CEO? Step 3: Make your recommendation. Do you think Barnes & Noble’s recent history will make it even more difficult to recruit a new CEO? The mountaineering guide (pulling the climber up) exemplifies path-goal leadership. His job is to reduce roadblocks during an ascent and to provide coaching and support dur- ing the journey. Of the two climbers, who do you think has the most fun? Who has the greatest sense of accomplishment? Javier Perini CM/Image Source Organizational Behavior: A Practical, Problem-Solving Approach 527Leadership Effectiveness CHAPTER 13 What Determines Leadership Effectiveness? The Match between Leadership Behavior and Contingency Factors Figure 13.4 shows that two contingency factors— employee characteristics and environmental factors—can cause some leadership behaviors to be more effective than others. FIGURE 13.4 Representation of House’s Revised Path-Goal Theory • Path-goal clarifying • Achievement oriented • Work facilitation • Supportive • Interaction facilitation • Group-oriented decision making • Representation and networking • Value based Leader Behaviors General Behaviors Specifics of Situation Resulting E�ectiveness • Employee motivation • Employee satisfaction • Employee performance • Leader acceptance • Work-unit performance Leadership E�ectiveness • Task structure • Work group dynamics Environmental Factors • Locus of control • Task ability • Need for achievement • Experience • Need for clarity Employee Characteristics McGraw-Hill Global Education Holdings, LLC Putting the Theory into Action To better understand how these contingency factors influence leadership effectiveness, we consider locus of control (see Chapter 3), an employee characteristic, and task structure, an environmental factor. EXAMPLE Locus of control can be internal or external. Internal. Employees with an internal locus of control are • More likely to prefer participative or achievement-oriented leadership because they believe they have control over the work environment. • Unlikely to be satisfied with directive leader behaviors that exert additional control over their activities. External. Employees with an external locus • Tend to view the environment as uncontrollable, preferring the structure provided by supportive or directive leadership. EXAMPLE Task structure can be low or high. Low. Low task structure occurs when • Employees are not clear about their roles or performance expectations and have high role ambiguity. Directive and supportive leadership should help employees experiencing role ambiguity. High. High task structure occurs when • Employees work on routine and simple tasks. Directive leadership is likely to frustrate such employees. Supportive leadership is most useful in this context. Organizational Behavior: A Practical, Problem-Solving Approach 528 PART 2 Groups Does the Revised Path-Goal Theory Work? There are not enough direct tests of House’s revised path-goal theory to draw overall conclusions. Nonetheless, the theory offers us three key points. 1. Use more than one style of leadership. Effective leaders use multiple types of leader behavior. Familiarize yourself with the eight types of leader behavior outlined in path- goal theory and try new behaviors when the situation calls for them. 2. Help employees achieve their goals. Clarify the paths to goal accomplishment and remove any obstacles that may impair an employee’s ability to achieve his or her goals. TABLE 13.4 Categories of Leader Behavior in Revised Path-Goal Theory LEADER BEHAVIORS WHAT IT MEANS Path-goal–clarifying behaviors Clarifying employees’ performance goals; providing guid- ance on how employees can complete tasks; clarifying performance standards and expectations; use of positive and negative rewards contingent on performance Achievement-oriented behaviors Setting challenging goals; emphasizing excellence; demonstrating confidence in employees’ abilities Work-facilitation behaviors Planning, scheduling, organizing, and coordinating work; providing mentoring, coaching, counseling, and feedback to assist employees in developing their skills; eliminating roadblocks; providing resources; empowering employees to take actions and make decisions Supportive behaviors Showing concern for the well-being and needs of employees; being friendly and approachable; treating employees as equals Interaction-facilitation behaviors Resolving disputes; facilitating communication; encourag- ing the sharing of minority opinions; emphasizing collabo- ration and teamwork; encouraging close relationships among employees Group-oriented decision- making behaviors Posing problems rather than solutions to the work group; encouraging group members to participate in decision making; providing necessary information to the group for analysis; involving knowledgeable employees in decision making Representation and networking behaviors Presenting the work group in a positive light to others; maintaining positive relationships with influential others; participating in organizational social functions and ceremonies; doing unconditional favors for others Value-based behaviors Establishing a vision, displaying passion for it, and sup- porting its accomplishment; demonstrating self-confidence; communicating high-performance expectations and confidence in others’ abilities to meet their goals; giving frequent positive feedback SOURCE: House, Robert J. “Path-Goal Theory of Leadership: Lessons, Legacy, and a Reformulated Theory.” The Leadership Quarterly 7, no. 3 (Autumn 1996): 323–52. https://doi.org/10.1016/S1048-9843(96)90024-7. Organizational Behavior: A Practical, Problem-Solving Approach 529Leadership Effectiveness CHAPTER 13 3. Modify your leadership style to fit various employee and environmental characteris- tics. Remember that a small set of employee characteristics (ability, experience, and need for independence) and environmental factors (task characteristics of autonomy, variety, and significance) are relevant contingency factors.86 Applying Contingency Theories Although researchers and practitioners support the logic of contingency leadership, its practical applications have not been clearly developed. A team of researchers proposed a general strategy managers can use across a variety of situations, however. It has five steps.87 To describe them, let’s use the examples of a head coach of a sports team and a sales manager. Step 1: Identify important outcomes. Managers must first identify the goals they want to achieve. For example, the head coach may have games to win or wish to avoid injury to key players, whereas a sales manager’s goal might be to increase sales by 10 percent or reduce customers’ complaints by half. Step 2:  Identify  relevant  leadership behaviors. Next managers need to identify the specific types of behaviors that may be appropriate for the situation at hand. The list in Table 13.4 is a good starting point. A head coach in a championship game, for instance, might focus on achievement-oriented and work-facilitation behaviors. In contrast, a sales manager might find path-goal–clarifying, work-facilitation, and sup- portive behaviors more relevant for the sales team. Don’t try to use all available leadership behaviors. Rather, select the one or two that appear most helpful. Step 3: Identify situational conditions. Fiedler and House both identify a set of poten- tial contingency factors to consider, but there may be other practical considerations. For example, a star quarterback on a football team may be injured, which might require the team to adopt a different strategy for winning the game. Similarly, the need to manage a virtual sales team with members from around the world will affect the types of leadership most effective in this context. Step 4: Match leadership to the conditions at hand. There are too many possible situa- tional conditions for us to provide specific advice. This means you should use your knowledge about organizational behavior to find the best match between your lead- ership styles and behaviors and the situation at hand. The coach whose star quarter- back is injured might use supportive and values-based behaviors to instill confidence that the team can win with a different quarterback. Our sales manager also might find it useful to use the empowering leadership associated with work-facilitation behaviors and avoid directive leadership. Step 5: Decide how to make the match. Managers can use guidelines from either con- tingency theory or path-goal theory: change the person in the leadership role or change his or her behavior. It is not possible to change the head coach in a champi- onship game. This means the head coach needs to change his or her style or behav- ior to meet the specific challenge. In contrast, the organization employing the sales manager might move him or her to another position because the individual is too directive and does not like to empower others. Or the sales manager could change his or her behavior, if possible. Organizational Behavior: A Practical, Problem-Solving Approach 530 PART 2 Groups 13.5 TRANSFORMATIONAL LEADERSHIP: HOW DO LEADERS TRANSFORM EMPLOYEES’ MOTIVES? Transformational leadership represents a broad type of leader behavior that goes beyond task and relational leadership. Its origins date to the 1940s, when German sociologist Max Weber discussed the pros and cons of charismatic leadership.88 Charisma  is a form of interpersonal attraction that inspires acceptance, devotion, and enthusiasm. Weber’s initial ideas were examined and then incorpo- rated into different models of transformational leadership during the 1970s and ’80s. The dominant model of transformational leadership was proposed by a renowned OB scholar, Bernard Bass.89 Bass believed transformational leaders used key leader behaviors to influence others. A Model of Transformational Leadership Transformational leaders  transform their followers to pursue organizational goals over self-interests. They do this by appealing to followers’ self-concepts—their values, motives, and personal identity. There are four key behaviors of transformational leaders: inspirational motivation, idealized influence, individualized consideration, and intellectual stimulation. Figure 13.5 provides a sketch of the way transformational leaders rely on the four behaviors. Let’s look at each in more detail. Inspirational Motivation “Let me share a vision that elevates us to a greater good.” Inspirational motivation,  which includes the use of charisma, relies on an attractive vision of the future, emotional arguments, and demonstrated optimism and enthu- siasm. A vision is “a realistic, credible, attractive future for your organization.”90 Accord- ing to Burt Nanus, a leadership expert, the right vision unleashes human potential because it serves as a beacon of hope and common purpose. It does this by attracting commitment, energizing workers, creating meaning in employees’ lives, establishing a standard of excel- lence, promoting high ideals, and bridging the gap between an organization’s present prob- lems and its future goals and aspirations. EXAMPLE Netflix co-founder and CEO Reed Hastings motivates employees by stepping back and letting them make decisions, which empowers them to acquire knowledge and share this knowledge with others at all levels of the organization.91 Describe how to use transformational leadership to work with others. LO 13-5 THE BIGGER PICTURE Transformational leaders use a combination of charisma, interpersonal skills, and leader behaviors to transform followers’ goals, motives, and behavior. Four key behaviors they adopt are inspirational motivation, idealized influence, individualized consideration, and intellectual stimulation. We discuss a process by which these behaviors help produce positive outcomes. Organizational Behavior: A Practical, Problem-Solving Approach 531Leadership Effectiveness CHAPTER 13 Idealized Influence “Let me demonstrate how to work hard and do the right thing.” The focus of idealized influence  is to instill pride, respect, and trust within employees. Managers do this by sacrificing for the good of the group, being a role model, and displaying high ethical standards. EXAMPLE Netflix’s core philosophy is “people over process.” According to Hastings, the company’s top core value is encourag- ing employees to make decisions indepen- dently that will foster a creative and collaborative environment.92 Individualized Consideration “Let me provide tangible support to help you reach your goals.” The individualized consideration part of transformational leadership is about relation- ships. Specifically, individualized consider- ation  consists of behaviors that provide support, encouragement, empowerment, and coaching to employees. To enact these behaviors, leaders must pay special attention to the needs of their followers and search for ways to help them develop and grow. Spend time talk- ing with people about their interests and identify new learning opportunities for them. FIGURE 13.5 A Transformational Model of Leadership • Traits • Inspirational motivation • Increased self-e�cacy and collective self-e�cacy • Increased individual, group, and organizational performance • Positive work attitudes • Increased individual and group creativity/innovation • Reduced stress and turnover • Increased organizational citizenship behavior • Increased customer service • Positive perceptions of leader eectiveness • Increased identification with the leader and work group members • Increased perceptions of psychological empowerment and perceived organizational support • Increased positive aect • Increased perceptions of task meaningfulness • Increased perceptions of organizational justice • Increased trust and liking with the leader • Increased perceptions of positive climates and work group processes • Idealized influence • Individualized consideration • Intellectual stimulation • Life experiences • Leader trait aect • Organizational culture Person and situation factors Leader behavior E�ects on followers and work groups Outcomes SOURCE: Waldman, David A., and Francis J. Yammarino. “CEO Charismatic Leadership: Levels-of-Management and Levels-of-Analysis Effects.” The Academy of Management Review 24, no. 2 (April 1999): 266–85. https: DOI: 10.2307/259082; and Knippenberg, Daan van, and Sim B. Sitkin. “A Critical Assessment of Charismatic—Transformational Leadership Research: Back to the Drawing Board?” The Academy of Management Annals 7, no. 1 (January 2013): 1–60. https://doi.org/10.1080/19416520.2013.759433. Reed Hastings, Netflix’s co-founder and CEO, exhibits transformational leadership skills that help him encourage employees to make deci- sions independently and empower them to create a collaborative and creative work environment. Ethan Miller/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 532 PART 2 Groups EXAMPLE More than a decade ago, Hastings and the former chief talent officer put together a slide presentation famously known as Netflix’s Culture Deck, which lays out the company’s expectations when it comes to employee behavior. Although not for everyone, this approach to shaping organizational culture and promising free- dom, transparency, and responsibility has garnered Netflix a strong level of job satis- faction from its employees.93 Intellectual Stimulation “Let’s establish challenging and meaningful goals.” The intellectual component of transformational leadership is more task-oriented. Intellectual stimulation  behavior encourages employees to question the status quo and to seek innovative and creative solutions to organizational problems. If effectively chal- lenged, employees are more likely to view organizational problems as “my problems” and proactively attempt to overcome performance roadblocks. EXAMPLE One of Netflix’s underlying corporate values is “challenge everything,” which leads everyone—both managers and employees—to question tasks and pro- cesses, try new things, make mistakes, try other things, and learn from good and bad outcomes. This collaborative approach reinforces the company’s commitment to keeping employees intellectually engaged.94 How Does Transformational Leadership Work? Figure 13.5 showed on the left-hand side that transformational leader behavior is first influenced by both person and situation factors. On the person factor side of the equation, research reveals that transformational leaders tend to have personalities that are more extroverted, agreeable, and proactive and less neurotic than nontransformational leaders. They also have higher emotional intelligence95 and tend to be female.96 Leader trait affect, which represents a person’s tendency to feel either positive or negative, also influences how well we use transformational leadership, because positive people are more likely to engage in transformational leadership than negatively oriented individuals.97 Finally, Figure 13.5 also shows that organizational culture influences the extent to which leaders are transformational. Cultures that are adaptive and flexible rather than rigid and bureaucratic are more likely to foster the opportunity for leaders to demonstrate transformational leadership. The third column from the left in Figure 13.5 reveals that the use of transformational leadership creates immediate positive effects on followers and work groups. These in turn generate the additional positive outcomes shown in the fourth column of Figure 13.5 like individual, group, and organizational performance; organizational commitment; organiza- tional citizenship behaviors; reduced turnover intentions; and safety behaviors.98 By and large, research supports the linkages the figure shows.99 Have you worked for a transformational leader? Self-Assessment 13.4 measures the extent to which a current or former manager used transformational leadership. It also gives you a good idea about the specific behaviors you need to exhibit if you want to lead in a transformational manner. Assessing Your Boss’s Transformational Leadership Please be prepared to answer these questions if your instructor has assigned Self-Assessment 13.4 in Connect. 1. What could your manager have done to be more transformational? 2. What three behaviors can you exhibit to increase your application of transforma- tional leadership? SELF-ASSESSMENT 13.4 Organizational Behavior: A Practical, Problem-Solving Approach 533Leadership Effectiveness CHAPTER 13 Implications for Managers Support for transformational leadership underscores five important managerial implications. • The establishment of a positive vision of the future—inspirational motivation—should be  considered a first step in applying transformational leadership. Why? Because the vision represents a long-term goal, and it is important for leaders to begin their influence attempts by gaining agreement and consensus about where the team or organization is headed.100 It also is critical to widely communicate the vision among the team or entire organization.101 People can’t get excited about something they don’t know about or don’t understand. • The best leaders are not just transformational. Effective leaders also rely on other task-oriented and relationship-oriented behaviors, and they avoid a laissez-faire or “wait-and-see” style. Use all types of leader behavior discussed in this chapter, when appropriate. • Transformational leadership affects outcomes at the individual, group, and organiza- tional  levels.102 Managers can use the four types of transformational leadership shown in Figure 13.5 (second column from left) as a vehicle to improve a host of important outcomes. • Transformational  leadership works virtually. If you lead geographically dispersed people, focus on how you can display the four transformational leader behaviors in your e-mails, tweets, webinars, and conference calls.103 • Transformational  leaders can be ethical or unethical. While ethical transforma- tional leaders enable employees to enhance their self-concepts, unethical ones select or produce obedient, dependent, and compliant followers. Managers need to be more like Optimus Prime and his fellow transformers. That is, managers can be more effective by morphing their leadership styles to fit the situation at hand. Why do you think some people struggle with changing their leadership style across situations? Gustavo Caballero/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 534 PART 2 Groups Three additional perspectives on leadership deserve attention: • Leader–member exchange (LMX) theory. • The use of humility. • A follower perspective. The Leader–Member Exchange (LMX) Model of Leadership Leader–member exchange (LMX) theory differs considerably from the theories already discussed because it focuses on the quality of relationships between managers and subordi- nates, as opposed to their behaviors or traits. It also does not assume that leader behavior is characterized by a stable or average leadership style. Leader–member exchange (LMX) theory  is based on the assumption that leaders develop unique one-to-one relationships (exchanges) with each of the people reporting to them. Behavioral scientists call this sort of relationship a vertical dyad (a dyad is something with two parts). The forming of vertical dyads is said to be a naturally occurring process, resulting from the leader’s attempt to delegate and assign work roles. Two distinct types of LMX relationships are expected to evolve, in-groups and out-groups.104 In-Group vs. Out-Group Exchanges LMX relationships are based on the leader’s attempt to delegate and assign work roles. This process results in two types of leader– member dyads. • In-group exchange: Creating trust and mutual obligation. High in-group exchanges, also called high LMX, are characterized by a partnership of reciprocal influence, mutual trust, respect and liking, and a sense of common fate. These relationships become more social over time. • Out-group  exchange:  Creating  more  formality  in  expectations  and   rewards. Out-group exchanges, also known as low LMX relationships, tend to focus on the economic exchange between leaders and followers. They tend to be more formal and revolve around negotiating the relationship between performance and pay. They do not create a sense of mutual trust, respect, or common fate.105 Does the Quality of an LMX Matter? Whether an LMX is high or low influences many important outcomes contained in the Organizing Framework. For example, a high LMX is associated with individual-level behavioral outcomes such as task performance, turnover, orga- nizational citizenship, counterproductive behavior, and attitudinal outcomes such as organizational commitment, job satisfaction, and justice.106 An effective leader will treat Compare more recent approaches to leadership theory. LO 13-6 13.6 ADDITIONAL PERSPECTIVES ON LEADERSHIP THE BIGGER PICTURE You are about to discover how leader–member exchange theory, humility, and characteristics of good followers can help you achieve your career aspirations. Organizational Behavior: A Practical, Problem-Solving Approach 535Leadership Effectiveness CHAPTER 13 employees fairly in terms of assigning projects that are both challenging and interesting to all group members in an effort to keep them on track to achieve success, both on an indi- vidual and group level. Differential treatment of team members (due to LMXs of different quality) can be problematic.107 For example, a leader who plays favorites with employees she likes by con- tinuously giving them the top projects while ignoring others in the group may discover she is not only fostering a negative and hostile work environment, but her behavior may border on abusive supervision, a topic discussed earlier in the chapter, which could have severe consequences in terms of personal as well as organizational success.108 Recent research suggests that leaders perceived by subordinates to feel remorse about such low LMX or abusive treatment may actually improve relationships with their employees.109 The above findings underscore how important it is for you to have a high LMX with your boss. We’ll offer solutions for fixing a low LMX below, but for now let’s consider how LMXs are formed. How Are LMX Relationships Formed? The quality of an LMX is influenced by three categories of variables: follower characteristics, leader characteristics, and interper- sonal relationship variables.110 1.  Follower characteristics. Leaders tend to create higher LMXs with employees they perceive as possessing competence, positive personalities, agreeableness, conscien- tiousness, and extraversion. Do you possess these characteristics? 2.  Leader characteristics. Leaders who use transactional and transformational leadership tend to have higher LMXs. Not surprisingly, so do extroverted and agreeable leaders. 3. Interpersonal relationship variables. Far too many interpersonal factors affect an LMX for us to discuss here, so we note three that have the greatest impact on a leader– member relationship. High LMXs tend to occur when the parties: • Trust each other. •  Perceive themselves as similar in terms of interests (both like sports or action movies), values (both value honesty), and attitudes (both want work–life balance). • Like each other. Your dyadic relationship with your boss changes over time. A team of researchers concluded this happens because the variables that affect LMX interact and accumulate over time.111 For example, your author has had relationships with bosses that changed from good to bad, and then back to good. This tells us that you should not easily give up on trying to improve a low LMX. These two photos illustrate a core aspect of LMX theory. Leaders and followers with a positive “in-group exchange” tend to get along better and experience less conflict. In contrast, out-group exchanges are more likely to have a negative tone and more conflict. (Left): Fuse/Corbis/Getty Images; (right): John Lund/Nevada Wier/Blend Images/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 536 PART 2 Groups Managerial and Personal Implications of LMX Theory Here are three impor- tant managerial and personal implications of LMX theory. • Expectations matter. Leaders are encouraged to establish high-performance expecta- tions for all their direct reports, because favoritism and differential treatment lead to negative outcomes. Leaders should also communicate their view of relationships with their team.112 • Diversity still counts. Personality and demographic similarity between leaders and followers may be associated with higher LMXs, but managers should avoid creating a homogenous work environment just for the sake of having positive relationships with their direct reports. Diversity’s many benefits are too powerful to be ignored. • The initiative is yours. Positive actions can improve a poor LMX (see the Applying OB box). Take the lead rather than waiting for your boss to change the relationship. Self-Assessment 13.5 will help you diagnose the quality of your relationship with a boss and discover how you can improve it. Assessing Your Leader–Member Exchange  Please be prepared to answer these questions if your instructor has assigned Self- Assessment 13.5 in Connect. 1. Are you surprised by the results? Explain. 2. Based on your results, what do you think are the key causes of your LMX with your boss? Be specific. SELF-ASSESSMENT 13.5 Applying OB 3. Work on improving your relationship with your manager. Begin by examining the level of trust between you and then try to improve it by fre- quently and effectively communicating. You can also increase trust by following through on your commitments and achieving your goals.115 4. Learn what your boss believes are the desired characteristics of a good performer. Too many people fail to clarify expectations with their managers. For example, there are generational differences about what is appropriate dress at work. Violating these beliefs can land you in a poor LMX.116 Your boss needs your contributions to achieve his or her goals as a manager, and you need information, direction, and support from your boss. But when it comes to managing the relationship between you, you’re the one who’s in charge.113 1. Stay focused on your department’s goals and remain positive about your ability to accomplish your own goals. An unsupportive boss is just another obstacle to be overcome. 2. Be careful about the emotions you show at work. Anger generally is not a good emotion to display. Too much positivity can also be interpreted as unrealistic or silly. Emotions should be appropriate for the situation at hand.114 Tips for Improving the Quality of a Leader–Member Exchange Organizational Behavior: A Practical, Problem-Solving Approach 537Leadership Effectiveness CHAPTER 13 The Power of Humility  Humility is a relatively stable trait grounded in the belief that “something greater than the self exists.”117 Although some think it is a sign of weakness or low self-esteem, nothing could be further from the truth. Humble leaders tend to display five key qualities valued by employees: high self- awareness, openness to feedback, appreciation of others, low self-focus, and appreciation of the greater good.118 Adam Robinson, co- founder of Hireology, a talent management consulting firm, says one of the top leadership qualities companies are looking for in new hires or when promoting new leaders is humility. “Humble leaders appreciate their employees’ strengths and trust them to do effective work to help move the company forward,” according to Robinson.119 Although the scientific study of humility is relatively new, it has shown proven benefits for this trait. For example, a study of more than 146 employee teams in China, Portugal, and Singapore revealed that workers felt opti- mistic, resilient, and engaged when the boss was humble.120 Another study conducted in China demonstrated cascading positive effects of CEO humility across two organiza- tional levels. CEO humility positively influenced employee engagement, commitment, and performance.121 What can we conclude about humility in the context of OB? First, try to be more humble by changing the focus of your accomplishment from “me” to “we.” Share credit with others. Second, a humble style is better than an arrogant or complacent one.122 Third, an organization’s culture can promote humility. Employee-owned construction company TDIndustries does so with its agreed-upon set of cultural norms: “No rank in the room, everyone participates—no one dominates, and listen as an ally.” Employees also strive to be on a first-name basis with everyone.123 The Role of Followers in the Leadership Process All the theories discussed in this chapter have been leader-centric. That is, they focused on understanding leadership effectiveness from the leader’s point of view. We conclude the chapter by discussing the role of followers in the leadership process. To start, note how leaders and followers are closely linked. You cannot lead without hav- ing followers, and you cannot follow without having leaders. Each needs the other, and the quality of the relationship determines how we behave as followers. This is why both leaders and followers must focus on developing a mutually rewarding and beneficial relationship. Let’s consider some possible types of followers and the steps you can take to be a bet- ter follower. What Do Leaders Want from Followers? Followers vary in terms of the extent to which they commit to, comply with, or resist a leader’s influence attempts. For example, one researcher identified three types of followers: helpers, independents, and rebels.124 • Helpers show deference to and comply with the leadership. • Independents distance themselves from the leadership and show less compliance. • Rebels show divergence from the leader and are least compliant. We don’t tend to see professional athletes as humble, but this one surely is recognized for this attribute. Larry Fitzgerald is a wide receiver for the Arizona Cardinals. He has been selected for the Pro Bowl 11 times and currently ranks second in all-time receiving yards per game in NFL history. Despite these achievements, he does not assume he is good enough for the Hall of Fame. He is recognized for continually working on improving his game, being “nice” to opposing players, and being involved with charity and community-based organizations. Christian Petersen/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 538 PART 2 Groups Leaders obviously want followers who are: 1. Productive 4. Cooperative 2. Reliable 5. Proactive 3. Honest 6. Flexible Leaders do not benefit from followers who hide the truth, withhold information, fail to generate ideas, are unwilling to collaborate, provide inaccurate feedback, or are unwilling to take the lead on projects and initiatives.125 What Do Followers Want from Leaders? Followers seek, admire, and respect lead- ers who foster three emotional responses in others: • Significance • Community • Excitement That is, followers want organizational leaders who make them feel what they do at work is important and meaningful, who foster a sense of unity that encourages people to treat oth- ers with respect and dignity and to work together, and who make them feel engaged and energized at work.126 How Can I Become a Better Follower? A pair of OB experts developed a four-step process for followers to use in managing the leader–follower relationship.127 1. Understand your boss. Gain an appreciation for your manager’s leadership style, inter- personal style, goals, expectations, pressures, and strengths and weaknesses. One way is to ask him or her these seven questions:128 a.  How would you describe your leadership style? Does it change when you are under pressure? b.  When would you like me to approach you with questions or information? Are any situations off-limits (like social events)? c.  How do you want me to communicate with you? d.  Do you have any preferred or unique ways of working? e.  Are there behaviors or attitudes you won’t tolerate? What are they? f.  What is your approach to giving feedback? g.  How can I help you? 2. Understand your own style, needs, goals, expectations, and strengths and weaknesses. 3. Conduct a gap analysis between the understanding you have about your boss and the  understanding you have about yourself. 4. Build on mutual strengths and adjust or accommodate your boss’s divergent style, goals,  expectations, and weaknesses.129 For example, you might adjust your style of commu- nication in response to your boss’s preferred method for receiving information. Or if the boss prefers participative decision making, consult him or her in all decisions regardless of your own style. Most managers are pushed for time, energy, and resources and are more likely to appreciate followers who save rather than cost them these. Avoid using your manager’s time discussing trivial matters. Organizational Behavior: A Practical, Problem-Solving Approach 539Leadership Effectiveness CHAPTER 13 Becoming an effective leader is a challenging process for anyone and involves continuously learning about yourself, as well as others. Here are some key points to consider. 13.7 MAKING THE CONNECTION: WHAT DOES IT TAKE TO BE AN EFFECTIVE LEADER? Takeaways for Me Here are six things you can do to turn this chapter’s lessons into positive change in your personal and professional life. 1.  Give some thought to whether you want a managerial or leadership role in your career: It’s not for everyone. For example, if you don’t like to participate in meetings, this role is not for you. Self-Assessment 13.1 was created to help you with this decision. 2.  The more you look and act like someone’s prototype of a leader, the more he or she will  see you that way: This implies you should seek to understand your employer’s expecta- tions of leadership. 3.  Experiment with the full repertoire of leadership behaviors at school and work: Reflect- ing on this experience will help you understand the situational aspect of leadership. 4.  Try being more transformational at meetings: You can do this by demonstrating the four key behaviors underlying transformational leadership. 5.  Take responsibility for your relationship with your boss: You can improve this relation- ship by following our recommendations about being a good follower. 6.  Get feedback on your leadership: It’s the only way to improve. Takeaways for Managers There are seven key implications for managers. 1.  Take stock of the task-oriented traits and interpersonal attributes needed to lead. 2.  Find out how others are assessing your leadership: You won’t get promoted if people perceive you lack leadership ability. 3. Experiment with a contingency approach toward leadership: This requires you to gain perspective about the different leadership behaviors your followers may need. 4.  Being mindful can improve your leadership skills: Revisit our discussion of mindfulness in Chapter 7 and incorporate mindfulness techniques into your leadership. 5.  Try to develop positive relationships with all your followers. 6.  Be a good follower to your boss. 7.  Get feedback on your leadership: It’s the only way to improve Describe the implications of leadership effectiveness for you and managers. LO 13-7 Organizational Behavior: A Practical, Problem-Solving Approach 540 PART 2 Groups You learned that being an effective leader requires appropriate leadership behavior that you can learn and develop. The integrated model of leadership allows you to understand the many factors contributing to leadership effectiveness. You also learned the importance of being a good follower. Reinforce your learning with the Key Points below. Consolidate your knowledge by using the Organizing Framework. Then challenge your mastery of the material by answering the Major Questions in your own words. Key Points for Understanding Chapter 13 You learned the following key points. 13.1 MAKING SENSE OF LEADERSHIP THEORIES • You do not need to have a formal position of authority to lead. • Figure 13.2 shows an integrated model of leadership. The extent to which people effec- tively use the four key leader behaviors— task-oriented, relationship-oriented, passive, and transformational—is a function of demo- graphic characteristics, intelligence and skills, task-oriented traits, and interpersonal attri- butes. • Effective leadership requires effective mana- gerial skills at some level. 13.2 TRAIT THEORIES: DO LEADERS POSSESS UNIQUE TRAITS AND PERSONAL CHARACTERISTICS? • Table 13.1 summarizes the positive task- oriented traits and positive/negative interper- sonal attributes leaders possess. • Emotional intelligence contributes to transfor- mational leadership and is positively associ- ated with leader effectiveness. • There are both similarities and differences in the leadership traits possessed by men and by women. • Leaders need four key skills: cognitive abili- ties, interpersonal skills, business skills, and strategic skills. • People hold mental prototypes of effective and ineffective leaders. 13.3 BEHAVIORAL THEORIES: WHICH LEADER BEHAVIORS DRIVE EFFECTIVENESS? • Four categories of leader behavior are task- oriented, relationship-oriented, passive, and transformational. • Task-oriented leadership includes the use of initiating structure and transactional leadership. • Relationship-oriented leadership includes the use of consideration, empowerment, servant leadership, and ethical leadership. • Followers experience psychological empow- erment when leaders create perceptions of meaningfulness, self-determination or choice, competence, and impact. • Servant-leadership focuses on increased service to others rather than ourselves. Servant-leaders display the characteristics in Table 13.3. • Ethical leadership focuses on doing the right thing and establishing norms of ethical behavior. • Abusive leadership is demoralizing and coun- terproductive to both employees and the overall organization. Avoid it! What Did I Learn? Organizational Behavior: A Practical, Problem-Solving Approach 541Leadership Effectiveness CHAPTER 13 13.6 ADDITIONAL PERSPECTIVES ON LEADERSHIP • The LMX model revolves around the development of dyadic relationships between managers and their direct reports. These leader–member exchanges result in either in- group or out-group relationships. • Humility is a stable trait associated with the belief that something is more important than the self. Humble leaders exhibit five key qualities: high self-awareness, open- ness to feedback, appreciation of others, low self-focus, and appreciation of the greater good. • It is hard for leaders to be effective if they have poor followers. Leaders want followers who are productive, reliable, honest, cooper- ative, proactive, and flexible. People are more likely to be positive followers when the leader creates feelings of significance, community, and excitement. • To improve the relationship with a boss, followers should first understand the boss. Second, followers should understand their own style, needs, goals, expectations, and strengths and weaknesses. Third, they should conduct a gap analysis between the under- standings they have about their boss and about themselves. Finally, followers can build on mutual strengths and adjust to or accom- modate the leader’s different style, goals, expectations, and weaknesses. 13.7 WHAT DOES IT TAKE TO BE AN EFFECTIVE LEADER? • Give some thought to whether you want a managerial or leadership role in your career— it’s not for everyone. • Experiment with various leadership behaviors— this will help you understand the situational aspect of leadership. • Find out how others assess your leadership skills—it’s the only way to improve. 13.4 CONTINGENCY THEORIES: DOES THE EFFECTIVENESS OF LEADERSHIP DEPEND ON THE SITUATION? • Contingency theories are based on the idea that the effectiveness of leadership depends on the situation at hand. • Fiedler believes leadership effectiveness depends on an appropriate match between leadership style and situational control. Lead- ers are either task- or relationship-oriented, and the situation is composed of leader– member relationships, task structure, and position power. • House’s path-goal theory holds that leader behaviors are effective when employees view them as a source of satisfaction or as paving the way to future satisfaction. In this respect, leaders exhibit eight styles or cate- gories of leader behavior. In turn, the effec- tiveness of these styles depends on various employee characteristics and environmental factors. • Researchers suggest a five-step approach for applying contingency theories. 13.5 TRANSFORMATIONAL LEADERSHIP: HOW DO LEADERS TRANSFORM EMPLOYEES’ MOTIVES? • Transformational leaders motivate employees to pursue organizational goals above their own self-interests. • Transformational leaders rely on four unique types of leader behavior: inspirational motiva- tion, idealized influence, individualized con- sideration, and intellectual stimulation. • Person and situation factors influence the extent to which people use transformational leadership. • The use of transformational leadership has positive effects on followers and work groups. In turn, these positive effects foster positive individual, group, and organizational performance. Organizational Behavior: A Practical, Problem-Solving Approach 542 PART 2 Groups chapter? Refer to the Key Points, Figure 13.6, the chapter itself, and your notes to revisit and answer the following major questions: 1. How does having an integrated model of leadership help me become an effective leader? 2. How can I use trait theories to improve my ability to lead? 3. Do effective leaders behave in similar ways? 4. How do I know when to use a specific leader behavior? 5. How can I use transformational leadership when working with others? 6. How can more recent approaches to leader- ship improve my effectiveness at work? The Organizing Framework for Chapter 13 As shown in Figure 13.6, you learned a host of person and situation factors that influence the leadership processes identified in the figure. You also understand the breadth and power of lead- ership by looking at the Outcomes box of the framework. Here you see the individual-, group/ team-, and organizational-level outcomes affected by leadership. Challenge: Major Questions for Chapter 13 You now should be able to answer the following questions. Unless you can, have you really processed and internalized the lessons in the FIGURE 13.6 The Organizing Framework for Understanding and Applying OB INPUTS PROCESSES OUTCOMES Person Factors • Traits • Skills • Gender • Prototypes • Ethical beliefs and values • Experience • Self-concept Situation Factors • Organizational culture • Organizational climate • Task structure • Work group dynamics • Leader’s personality and style • Trust between leaders and followers • Quality of followers Individual Level • Task-oriented leadership • Relationship-oriented leadership • Passive leadership • Transformational leadership • Leader-member exchange Group/Team Level • Task-oriented leadership • Relationship-oriented leadership • Passive leadership • Transformational leadership • Leader-member exchange Organizational Level • Task-oriented leadership • Relationship-oriented leadership • Passive leadership • Transformational leadership Individual Level • Task performance • Work attitudes • Well-being/flourishing • Citizenship behavior/ counterproductive behavior • Turnover • Career outcomes • Creativity Group/Team Level • Group/team performance • Group satisfaction • Group collaboration Organizational Level • Accounting/financial performance • Customer satisfaction • Corporate reputation © 2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. Organizational Behavior: A Practical, Problem-Solving Approach 543Leadership Effectiveness CHAPTER 13 Elon Musk is widely regarded as one of the most suc- cessful entrepreneurs in history.130 He became a bil- lionaire by age 31 after founding and selling several successful start-ups—most notably the company that would later be known as Paypal. In 2004 Musk invested $6.3 million into Tesla Motors and soon after became the company’s CEO.131 Musk has a keen ability to express ideas and get people excited about them and has garnered praise for his inspiring and visionary leadership.132 Author Dale Buss argues that “. . . a huge part of Musk’s motiva- tional quiver is to come up with and continually express other-worldly goals that appeal to the passions of his employees as well as to his own ambitions.”133 Todd Maron, Tesla’s former general counsel, said Musk is “someone who empowers you to be better than you think you can be,” adding that “he has extraordinarily high standards, and so he pushes you to be your abso- lute best.” Another former employee described Musk as “the smartest person I have ever met,” adding, “I can’t tell you how many times I prepared a report for him and he asked a question that made us realize we were looking at the problem completely wrong.”134 MUSK’S LEADERSHIP STYLE AND BEHAVIOR Some have criticized Musk’s aspirations to change the world as outlandish and his ideas as unachievable, but Musk doesn’t believe in impossibilities. Says author Christopher Davenport, “People are always telling him he can’t do it. But he doesn’t like to hear it can’t be done. He categorically rejects that. It’s all about, ‘How can we do it?’ ”135 A recent example of Musk’s stub- bornness is the production of the Model 3. After the company revealed the concept to the public and locked in production dates, Musk called a meeting to tell executives he had a dream that the entire produc- tion process had been fully automated. In other words, vehicle production would require no humans from start to finish. He wanted to make the dream a reality, he wanted to do it with the Model 3, and he wanted to begin production four months ahead of Tesla’s original schedule. What followed were several months of what former executives and employees describe as a famil- iar pattern: executives told Musk his idea wasn’t achievable, he disagreed, and engineers resigned when they realized they couldn’t reason with him.136 Musk eventually conceded that his idea for fully automated production of the Model 3 was a non- starter, and he and his workers scrambled to get pro- duction back on track by working 80–100 hour weeks.137 Customers waited months past delivery dates for their vehicles and took to social media to lambast the company. Further, many of the Model 3s that were delivered needed costly and time-consuming repairs.138 Musk would later refer to the ordeal as “production hell.”139 Some blame Musk’s inability to delegate for Tesla’s problems and for the recent exodus of more than 36 VPs and other high-ranking executives.140 Musk wants things done his way down to the tiniest detail and often rejects industry best practices along with advice from his senior leadership. For example, Musk once instituted a new workflow management method against the advice of his production workers. The employees secretly reverted to Toyota’s Kanban method when Musk’s technique ultimately slowed pro- duction.141 Author Barry Enderwick believes Musk’s micromanaging style “. . . displays a fundamental misun- derstanding of what leadership means. No one person can do everything at a company.”142 Others blame Musk’s mental health for his down- ward spiral and describe him as emotionally unstable and fragile. Musk developed a reputation on the pro- duction floor for openly ridiculing, insulting, and bully- ing workers who fell short of performance targets. He appeared extremely sensitive to skeptics, often reas- signing workers who questioned his ideas to new departments, uninviting them to important meetings, and even firing them. Musk also displayed frequent emotional reactions to isolated customer complaints on social media. As a former employee recalls, “Some customer would tweet some random complaint, and then we would be ordered to drop everything and spend a week on some problem affecting one loud- mouth in Pasadena, rather than all the work we’re sup- posed to do to support the thousands of customers who didn’t tweet that day.”143 Musk’s recent public appearances and social media posts have raised consumer concerns about his ability to deliver on his promises and successfully run his companies. In one instance, he angrily tweeted that a diver sent to rescue a trapped Thai boys’ soccer team was a pedophile after Musk’s offer to assist with the res- cue was declined. The diver filed a defamation lawsuit PROBLEM-SOLVING APPLICATION CASE  Leadership Matters! Organizational Behavior: A Practical, Problem-Solving Approach 544 PART 2 Groups important problem(s) in this case. Remember that a problem is a gap between a desired and a current state. State your problem as a gap, and be sure to consider problems at all three levels. If more than one desired outcome is not being accomplished, decide which one is most impor- tant and focus on it for steps 2 and 3. B. Cases have protagonists (key players), and problems are generally viewed from a particular protagonist’s perspective. Identify the perspective from which you’re defining the problem. STEP 2: Identify causes of the problem by using material from this chapter, summarized in the Organizing Framework shown in Figure 13.6. Causes will appear in either the Inputs box or the Processes box.  A. Start by looking at Figure 13.6 to identify which person factors, if any, are most likely causes to the defined problem. For each cause, ask your- self, Why is this a cause of the problem? Asking why multiple times is more likely to lead you to root causes of the problem. B. Follow the same process for the situation factors. C. Now consider the Processes box shown in Figure 13.6. Consider concepts listed at all three levels. For any concept that might be a cause, ask yourself, Why is this a cause? Again, do this for several iterations to arrive at root causes. D. To check the accuracy or appropriateness of the causes, map them onto the defined problem. STEP 3: Make your recommendations for solv- ing the problem. Consider whether you want to resolve it, solve it, or dissolve it (see Section 1.5). Which recommendation is desirable and feasible?  A. Given the causes identified in Step 2, what are your best recommendations? Use the content in Chapter 13 or one of the earlier chapters to pro- pose a solution. B. You may find potential solutions in the OB in Action boxes and Applying OB boxes within this chapter. These features provide insights into what other individuals or companies are doing in relationship to the topic at hand. C. Create an action plan for implementing your recommendations. against Musk for this damaging and unsubstantiated claim.144 As another example, Musk chose to smoke marijuana during an appearance on “The Joe Rogan Experience” podcast.145 In August 2018, in what would prove the most financially damaging of his social media choices to date, Musk tweeted that he was tak- ing Tesla private and had secured the funding to do so. As a result of his tweet, the company’s shares skyrock- eted 11 percent in one day. Musk had not actually secured funding to take Tesla private and the SEC charged him with securities fraud. He settled the case and agreed to pay a $40 million fine to the SEC, step down as Tesla’s chairperson, and allow others in the company to regulate his social media activity.146 A few months after reaching the settlement, Musk gave a 60 Minutes interview and said “I do not respect the SEC.” While it is not illegal for Musk to criticize the regu- latory agency, experts agree it’s an unwise choice, both in terms of his relationship with the agency and his abil- ity to attract board members to his companies.147 WHAT’S NEXT FOR ELON MUSK? Musk’s quirkiness, overconfidence, and volatility resemble the attributes and behaviors of other famous entrepreneurs—most notably, Steve Jobs.148 As con- sumers we allow for and even expect a certain amount of idiosyncrasy in our leaders. Yale School of Manage- ment’s Dr. Jeffrey Sonnenfeld argues that some mea- sure of hubris is necessary for entrepreneurs to succeed, saying, “The odds are against them succeed- ing rationally, so they have to have an unrealistic sense of their own efficacy to beat the odds.” But Sonnenfeld also notes that Musk is likely to “take himself and the company off a cliff” if he doesn’t dial things back.149 Tesla recently unveiled its new electric vehicle—the Model Y crossover—to lukewarm reception. Pre-orders started immediately and required a $2,500 initial payment—$1,000 more than the company had charged customers to reserve the Model 3. Market analysts see this increase as cause for concern about the company’s cash position and predict that initial orders for the Model Y will be much lower than they were for the Model 3.150 As for that tweet that cost him $40 million in SEC fines and his position as chairman of Tesla’s board, Musk says it was “worth it.”151 APPLY THE 3-STEP PROBLEM- SOLVING APPROACH TO OB STEP 1: Define the problem. A. Look first at the Outcomes box of the Organizing Framework in Figure 13.6 to help identify the Organizational Behavior: A Practical, Problem-Solving Approach 545Leadership Effectiveness CHAPTER 13 LEGAL/ETHICAL CHALLENGE Should Store Managers Force Employees to Pierce Kids’ Ears Against Their Wishes? A former Claire’s employee in Edmonton, Canada, is calling out the accessories chain for its piercing policies. Raylene Marks believes store employees should respect children’s boundaries with regard to their bod- ies. She described a recent distressing situation in which a 7-year-old child’s mother continually pres- sured her to allow Marks to pierce her ears. “The girl pleaded and sobbed for 30 minutes not to be pierced” . . . “Despite mom saying, ‘Honey, we can go home whenever you want,’ she was not letting her daughter go home. She was putting a great deal of pressure on her daughter to go through with the pierc- ing,” said Marks. She added that the child was “articu- late, smart and well aware of herself and her body” and “expressed that she didn’t want us touching her, that we were standing too close, that she was feeling uncomfortable.” Marks says the child “made it clear she no longer wanted to get her ears pierced.” The mother eventually left the store without forcing her child to have her ears pierced. Marks later informed her manager that she would not have consented to do the piercing without the child’s express consent to and comfort with the procedure. Marks says her manager told her the job required her to pierce children’s ears even if they were being physically restrained by guard- ians and in clear distress. Policy 509 in the company’s manual states that “We reserve the right to refuse an ear piercing if a success- ful one cannot be done,” but Marks says the policy makes no mention of physical restraint or employees’ rights to refuse to pierce due to child welfare concerns. Marks quit her job at Claire’s after the conversation with her manager. She says any subsequent refusals of this sort would have resulted in her being disciplined and potentially fired. Marks has written an open letter to the company asking them to “Please do better” and update their policy to address children’s domain over their bodies. She says corporate has since informed her that they are reviewing and revising their policy and investigating how Marks’ store manager handled the incident.152 What Would You Recommend to Claire’s Regarding Their Store Policies on Piercing? 1. Claire’s policy doesn’t specifically address child consent, but it is ambiguous enough to allow for employees to use discretion in such cases with- out fear of termination. Marks’ manager simply interpreted the policy incorrectly. Claire’s should do a better job training their managers in the application of company policies. 2. Stores should be allowed to come up with their own policies and parents should be left to par- ent as they see fit. The manager wasn’t breaking any laws or violating company policy, therefore she was correct in telling Marks that her job would have required her to pierce without the child’s consent. Claire’s should not have to revise its policy. 3. Claire’s should revise its policy to clearly address child safety concerns. No child should be forced to be pierced against their will, and employees should have the discretion to refuse to pierce children’s ears for these reasons. 4. Invent other options. Organizational Behavior: A Practical, Problem-Solving Approach Organizational Behavior: A Practical, Problem-Solving Approach PA R T O N E PART THREE Ferenc Szelepcsenyi/Shutterstock Organizational Processes Organizational Behavior: A Practical, Problem-Solving Approach LO 14-1 Describe the three levels and four functions of organizational culture. LO 14-2 Explain how to characterize an organization’s culture. LO 14-3 Describe the process of culture change in an organization. LO 14-4 Explain the three-phase model of organizational socialization. LO 14-5 Describe how mentoring can foster personal and professional success. LO 14-6 Describe the implications of organizational culture, socialization, and mentoring for you and managers. After reading this chapter, you should be able to: The Organizing Framework in Figure 14.1 summarizes what you will learn in this chap- ter.  Two person factors—human and social capital—and four situation factors—culture types, leader behavior, organizational climate, and human resource practices and policies— influence key processes at the individual, group, and organizational levels. In turn, these key processes support positive outcomes at all three levels. Concepts we discuss in this  chapter have greater impact on individual and organizational outcomes than on group ones. Organizational Culture, Socialization, and Mentoring14 Fe re nc S ze le pc se ny i/S hu tte rs to ck Organizational Behavior: A Practical, Problem-Solving Approach 549Organizational Culture, Socialization, and Mentoring CHAPTER 14 FIGURE 14.1 Organizing Framework for Understanding and Applying OB INPUTS PROCESSES OUTCOMES Person Factors • Human capital • Social capital Situation Factors • Culture types • Leader behavior • Organizational climate • Human resource practices and policies Individual Level • P-O fit • Socialization • Mentoring Group/Team Level • Group dynamics • Department/unit culture Organizational Level • Culture • Socialization • Mentoring Individual Level • Work attitudes • Employee behaviors • Career outcomes • Task performance • Turnover Group/Team Level • Group/team performance • Group cohesion and conflict Organizational Level • Accounting/financial performance • Customer service/satisfaction • Innovation • Product/service quality • Operational efficiency ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. The Walt Disney Company was founded in 1923 by brothers Walt and Roy Disney. The company is much more than its theme parks. Today Disney is a diversified multina- tional mass media and entertainment com- pany headquartered in Burbank, California. The company has a long reputation of having a strong culture aimed at being innovative and a fun place to work. In recognition of this theme, the Walt Disney Company was ranked as the 4th Most Admired Company in 2019 by Fortune. Here we see a manifestation of the company’s culture in front of Cinderella’s Castle at Walt Disney World, Orlando, Florida. Thousands of families visit their theme parks to have fun and enjoy the outstanding service provided by employees. The strong customer-driven culture established by the Disney brothers is alive and well. This chapter will help you understand how companies like Disney create such cultures. Ilene MacDonald/Alamy Stock Photo Organizational Behavior: A Practical, Problem-Solving Approach 550 Winning at Work How Would I Assess Person–Organization Fit (P–O) When Applying for Jobs? Fitting in is important to everyone. When I was 7, my father put me on a baseball team composed of 8- and-9-year-old boys. He thought it would be good for my development, but I was smaller and less skilled than the other boys, and they treated me like an outsider who didn’t fit in. It did not help that I was the coach’s son. I hated the experience. I also experienced a lack of fit at some of my early job positions. I valued things others did not and believed people were engaging in counterproductive actions. Some of my peers loved the job, the boss, and the work environment. They could not understand why I wasn’t happy, but I felt dis- engaged and started looking for a new job. That experience opened my eyes to the importance of “fitting in” at work. What Does It Mean to Fit? Person–environment fit (P–E)  is “the compatibility between an individual and a work environment that occurs when their characteristics are well matched.”1 Although there are many types of fit, we are interested in person– organization fit (P–O),  which reflects the extent to which your personality and values match the climate and culture in an organization. P–O fit matters because good fit is associated with more positive work attitudes and task performance, lower intentions to quit, and less stress.2 The process of assessing fit begins during the recruiting phase. Your goal should be to discover whether you and the job or the organization are a good fit for each other.3 How Can I Assess P–O Fit? Assessing P–O fit will take some effort on your part. First, evaluate your strengths, weaknesses, and values. Next, do the same for the company or department at hand by researching it online or talking with current employees. Now prepare a set of diagnostic questions to ask during the interview.4 Julian Pscheid, COO of Emerge Interactive, says, “The best candidates will go as far as reflecting on our  core values―which are posted on our website. This is also an early way to screen for a values match.”5 How Can I Improve My Level of Fit? • Find ways to build your strengths into your work role. Talk to your boss about how to redesign or modify your job to incorporate your strengths. • Decide whether weaknesses are affecting your performance. If they are, seek developmental oppor- tunities, coaching, or mentoring. If that does not work, find another role. • Assess any misalignment between your values and those endorsed by the company. You can do this by writing down your five most important values and comparing them to your employer’s stated values. If they don’t overlap and you can’t accept the discrep- ancy, it’s time to move on. • If you don’t fit at one job or location, consider a lateral move to another department. You may just need a different role or boss.6 What’s Ahead in This Chapter This chapter begins your study of macro-level orga- nizational behavior from the perspective of the organization as a whole. We start by exploring the foundation of organizational culture so you can understand its drivers and functions. Next, we review the four key types of organizational culture and consider their relationships with various out- comes. This is followed by a discussion of ways managers can change organizational culture. Finally, we discuss how socialization and mentoring serve to embed organizational culture, and we focus on how you can use knowledge of these processes to enhance your career success and happiness. Fitting in at work is like doing a puzzle. When the pieces fit in the right pattern, all is well. Lawrence Manning/Corbis/Punchstock Organizational Behavior: A Practical, Problem-Solving Approach 551Organizational Culture, Socialization, and Mentoring CHAPTER 14 THE BIGGER PICTURE Although you may have a small impact on your employer’s organizational culture, you undoubtedly are affected by it. Culture affects outcomes at the individual, group, and organi- zational level. You are about to learn what creates organizational culture and how culture affects other organizational processes. You also will identify the three levels that constitute culture and the functions it serves for organizations. 14.1 THE FOUNDATION OF ORGANIZATIONAL CULTURE: UNDERSTANDING ITS DRIVERS AND FUNCTIONS The saying “Culture eats strategy for breakfast” was attributed to management expert Peter Drucker. But no one takes that quote more seriously than T-Mobile CEO John Legere. Holding the top spot at the wireless carrier for the past seven years, Legere has turned the company’s culture upside down, starting with his signature magenta-colored T-Mobile wardrobe. Legere has transformed himself from a “suit” in the corner office to a charis- matic leader who spends time with his 50,000 employees at offices around the country and connects with customers via social media every day.7 Others agree with Legere’s emphasis on organizational culture. Alan Murray, Fortune editor, studied the annual Best Companies to Work For lists and concluded that great companies don’t just provide “free food, generous benefits, and nap pods (although those clearly don’t hurt).” He believes that culture is the essence of what makes great companies. “Today’s workers are looking for a corporate culture that values them and their contributions,” he said.8 Richard Branson—entrepreneur, philanthropist, and founder of the Virgin Group—also believes in the power of corporate culture. According to Branson, “there is no magic for- mula for great company culture. The key is just to treat your staff how you would like to be treated.”9 One of our primary goals in this chapter is to help you understand how managers can use organizational culture as a competitive advantage. We start by considering the founda- tion of organizational culture. Defining Culture and Exploring Its Impact Organizational culture  is defined as “the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments.”10 This definition highlights four important characteristics of organizational culture: • Shared concept. Organizational culture consists of beliefs and values shared among a group of people. • Learned over time. Culture is passed to new employees through the processes of socialization and mentoring, discussed later in this chapter. Describe the three levels and four functions of organizational culture. LO 14-1 Organizational Behavior: A Practical, Problem-Solving Approach 552 PART 3 Organizational Processes • Influences behavior at work. Its influence on behavior is the reason “culture eats strategy for breakfast.” • Affects outcomes at multiple levels. Culture affects outcomes at the individual, group/team, and organizational levels. Figure 14.2 provides a conceptual framework for understanding the drivers and effects of organizational culture. Five elements drive organizational culture: • The founder’s values. • The industry and business environment. • The national culture. • The organization’s vision and strategies. • The behavior of leaders. In turn, organizational culture influences the type of organizational structure a company adopts and a host of internal processes (including human resource practices) it implements in pursuit of its goals. These organizational characteristics then affect a variety of group and social processes.11 This sequence ultimately affects employees’ work attitudes and behaviors and a variety of organizational outcomes. All told, Figure 14.2 tells us that organizational culture has a wide span of influence, ultimately influencing many individual, group, and orga- nizational outcomes.12 Once again, this is the reason culture eats strategy for breakfast. The Three Levels of Organizational Culture Organizational culture operates on three levels: 1. Observable artifacts. 2. Espoused values. 3. Basic underlying assumptions. These levels differ in their visibility and resistance to change, and each one influences another. Let’s look at them one by one. Level 1: Observable Artifacts At the most visible level, culture consists of observ- able artifacts. Artifacts  are the physical manifestation of an organization’s culture. They include: • Acronyms. • Manner of dress. • Awards. FIGURE 14.2 Drivers and Flow of Organizational Culture Organizational Culture Organizational Structure and Internal Processes Group and Social Processes Work Attitudes and Behaviors Outcomes • The founder’s values • The industry and business environment • The national culture • The organization’s vision and strategies • The behavior of leaders Drivers of Culture SOURCE: Ostroff, Cheri, Angelo J. Kinicki, and Rabiah S. Muhammad. “Organizational Culture and Climate.” In Handbook of Psychology, edited by Irving B. Weiner, 619–76. Hoboken, NJ: John Wiley & Sons, Inc., 2013. Organizational Behavior: A Practical, Problem-Solving Approach 553Organizational Culture, Socialization, and Mentoring CHAPTER 14 • Myths and stories told about the organization. • Published lists of values. • Observable rituals and ceremonies. • Special parking spaces. • Pictures and images handing on walls. At Facebook, for example, the word hack is pasted all around offices. It symbolizes “the hacker way” of pursuing continuous improvement and challenging the status quo.13 Zappos and its parent company Amazon have a different take on artifacts: offering a “quit bonus” to employees who no longer want to work for the online giant. Started by Zappos more than a decade ago and continued after Amazon bought the company, the quit bonus pays employees up to $5,000 to leave the company. According to an Amazon spokesperson, “In the long-term, staying somewhere you don’t want to be isn’t healthy for our employees or our company.” The catch? Once an employee accepts the offer to quit, they can never work at Amazon again.14 Artifacts are easier to change than the less visible aspects of organizational culture. Level 2: Espoused Values Values were defined in Chapter 2 as abstract ideals that guide our thinking and behavior across all situations. In the context of organizational cul- ture, we distinguish between values that are espoused and values that are enacted. • Espoused values  are the explicitly stated qualities and norms preferred by an organization. They are generally established by the founder of a new or small com- pany and by the top management team in a larger organization. Most companies have a short list. For example, eyewear company Warby Parker has four espoused values: (1) treat customers the way you would like to be treated; (2) create an envi- ronment where employees can think big, have fun, and do good; (3) serve the com- munity; and (4) going green is good.15 Because espoused values are explicitly communicated to employees, managers hope they will directly influence employee behavior. But people do not always automatically “walk the talk.” Leadership at Patagonia recognized this gap and made a key strategic change to align its stated values with its actions. EXAMPLE Patagonia, one of the world’s most environmentally conscious com- panies, recently stopped selling its popular fleece vests to financial firms on Wall Street that invested in companies and other financial ventures that did not engage in sustainable business practices. The company said it shifted the focus of its corporate sales program to “mission-driven companies that prioritize the planet.”16 • Enacted values  are the qualities and norms that are exhibited or con- verted into employee behavior. These are values employees ascribe to an organization based on their observations of what occurs on a daily basis. As at Patagonia, managers should reduce gaps between espoused and enacted values because they can significantly influence employee attitudes and organizational performance. A survey from the Ethics Resource Center showed that employees were more likely to behave ethically when management set a good behavioral example and kept its promises and commitments.17 This finding was underscored by another study of Zappos and its parent company Amazon put a different spin on organizational artifacts: the companies offer a “quit” bonus to employees who no longer want to work for them. Helen H. Richardson/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 554 PART 3 Organizational Processes 129 mergers. Employees were more productive and post-merger performance was higher when employees believed that behavior was consistent with the newly formed firm’s espoused values.18 Level 3: Basic Underlying Assumptions Basic underlying assumptions  are organizational values so taken for granted over time that they become assump- tions guiding organizational behavior. Underlying assumptions are employees’ deep- seated beliefs about their company and are the core of organizational culture. As you might expect, they are highly resistant to change. Consider the way some companies rein- force a core belief in sustainability (see the OB in Action box). Sustainability  is “a company’s ability to make a profit without sacrificing the resources of its people, the community, and the planet.”19 Achieving sustainability is sometimes called “being green” and has become a priority for many companies in recent years. In addition to helping reduce a company’s global footprint, sustainability can also provide organizations with a competitive advantage when it comes to overall business strat- egies and financial success.20 For example, Kering SA, a French conglomerate that owns luxury goods companies such as Gucci, Saint Laurent, and Alexander McQueen, demon- strates its commitment to sustainability by sourcing more than 40 percent of its products from certifiable sources. In addition, Kering’s sustainability commitment extends to more diversity among its top management and board of directors. More that 60 percent of the company’s board of directors are women, far more than the gender makeup of most large corporations. Kering was recently named to the second spot on the 2019 Global 100—a list of large firms across the globe ranked on their performance in reducing waste, increasing gender diversity among leadership, realizing revenues from clean products, and forging overall sustainability practices.21 Ceres, a sustainability nonprofit organization that seeks to “tackle the world’s biggest sustainability challenges,” recently published a web-based analysis of more than 600 large, publicly traded companies in the United States that examined their performance on 20 key areas of sustainability leadership. Ceres found some encouraging results in the group, which included Citi, Coca-Cola, CVS Health, Gap, Inc., General Mills, Intel, Kellogg, Nike, and PepsiCo: • Nearly two-thirds of the companies plan to reduce their greenhouse gas emissions. • More than half have adopted formal water- management policies. • Almost half are committed to protecting their workers’ rights. While a great deal more remains to be done, “We have reached a turning point,” said Amy Augustine, senior director of the Ceres Company Network and co-author of the report. “It is no longer just about raising the ceiling. It is about lifting the floor. The time has come for bold and scalable Being vs. Becoming Sustainable OB in Action Goods by Natura Brasil are made from sustainable products. Florian Kopp/Newscom Organizational Behavior: A Practical, Problem-Solving Approach 555Organizational Culture, Socialization, and Mentoring CHAPTER 14 The Four Functions of Organizational Culture An organization’s culture fulfills four important functions (see Figure 14.3): 1. Establish organizational identity. 2. Encourage collective commitment. 3. Ensure social system stability. 4. Act as sense-making device. To help bring these four functions to life, let’s consider how each has taken shape at Southwest Airlines. Southwest has grown to serve more customers domestically than any other airline and has achieved 46 consecutive years of profitability. The com- pany has been on Fortune’s list of Most Admired Companies in the World for 25 con- secutive years, and it was named to Glassdoor’s Best Places to Work list for a 10th consecutive time.25 Function 1: Culture Provides Employees with an Organizational Identity  The identity of Southwest Airlines employees is focused on the belief that employee satis- faction and customer loyalty are more important than corporate profits. Gary Kelly, Southwest’s CEO, highlighted this theme by noting, “Our people are our greatest asset and they deserve all the credit for our continued success.”26 Southwest reinforces this identity by demonstrating in a variety of ways that it truly cares about its employees. The company’s catastrophe fund, for instance, is based on voluntary contributions for distribution to employees experiencing serious per- sonal difficulties. Its profit-sharing program paid out $544 million in 2018, adding solutions, not just from a few leading companies, but from com panies in all sectors and of all sizes who need to transition from making commitments to tak- ing concrete actions.”22 What does sustainability look like in action? • Started by college-student siblings in an entre- preneurship program and partially funded on Kickstarter, New York–based Fair Harbor Cloth- ing makes affordable boardshorts and swim- wear of polyester spun  from recycled plastic bottles. “I started my company because I saw all of the issues with single use plastic waste and the effect that it has been having on our environment,” said Jake Danehy, cofounder and CEO. “Our objective was to create an awe- some product that people loved, and show the positive things we can create out of recycled materials.”23 • NaturaBrasil, an award-winning global cosmetics company that recently expanded to the United States, was founded in Brazil in 1969 with a mission to “build a better world through our commitment to transparency, sustainability and well-being.” A certified B cor- poration (meeting the highest standards of social and environmental performance), Natu- raBrasil makes hair and skin  care products, perfumes, soaps, and creams from natural Bra- zilian ingredients and works closely with more than 30 local communities in the Amazon region to “develop sustainable business mod- els that benefit the forest.”24 YOUR THOUGHTS? 1. What do you think was the driving force behind Fair Harbor’s and NaturaBrasil’s efforts to found sustainable, profitable businesses? 2. What might differentiate the cultures of firms like these from the ones in Ceres’ study? 3. What challenges face a company trying to become a sustainable business, as opposed to being founded as a sustainable business? Organizational Behavior: A Practical, Problem-Solving Approach 556 PART 3 Organizational Processes about 10.8 percent to each employee’s compensation.27 Southwest’s people-focused identity also is reinforced by the fact that it is an employer of choice. The company received 342,664 resumes for 7,207 job openings in 2016. It also was rated as provid- ing outstanding opportunities for women, Hispanics, and members of the LGBTQ community.28 Function 2: Culture Facilitates Collective Commitment The mission of Southwest Airlines is “dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit.”29 This commitment to serving others is endorsed by the company’s more than 58,000 employees. Southwest consistently lands at the top of the list for best customer service among domestic airlines and has received the lowest ratio of complaints by passengers based on statistics maintained by the U.S. Department of Transportation over the last 30 years. Commitment to service doesn’t just apply to customers at Southwest. Employees volunteered more than 190,000 hours to local and national nonprofit organizations in 2018.30 Function 3: Culture Promotes Social System Stability Social system stability is the extent to which the work environment is perceived as positive and reinforcing, and the extent to which conflict and change are effectively managed. Southwest is noted for its philosophy of having fun, holding parties, and celebrating. For example, staff in each city FIGURE 14.3 Four Functions of Organizational Culture SOURCE: Smircich, Linda. “Concepts of Culture and Organizational Analysis.” Administrative Science Quarterly 28, no. 3 (1983): 339–58. https://DOI: 10.2307/2392246. Act as sense-making device Encourage collective commitment Organizational culture Establish organizational identity Ensure social system stability Organizational Behavior: A Practical, Problem-Solving Approach 557Organizational Culture, Socialization, and Mentoring CHAPTER 14 in which the firm operates are given a budget for parties. The company also uses a variety of performance-based awards and service awards to reinforce employees’ efforts. Its posi- tive and enriching environment is supported by the lowest turnover rates in the airline industry.31 Function 4: Culture Shapes Behaviors by Helping Members Make Sense of Their Surroundings Making sense of the surroundings is what helps employees understand why the organization does what it does and how it intends to accomplish its long-term goals. Keeping in mind that Southwest’s leadership originally viewed ground transportation as its main competitor in 1971, employees understand why the airline’s primary vision is to be the best short-haul, low-fare, high-frequency, point-to- point carrier in the United States. Employees know they must achieve exceptional performance, such as turning a plane around in 20 minutes, because they must keep costs down to compete against Greyhound and automobiles. In turn, the company reinforces the value it places on outstanding customer service and high performance by using performance-based awards and profit sharing. Employees own about 10 per- cent of the company stock.32 This photo demonstrates Southwest’s culture. Employees are having fun in an airport terminal to lighten what can be a frustrating experience for passengers. Do you think these employees can lift the spirits of the travelers in the background? Glenn Asakawa/Denver Post/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 558 PART 3 Organizational Processes To learn how different types of culture relate to outcomes, we need a way to classify cul- ture types. While the complexity of culture makes agreement on a set of types difficult to reach, academics have proposed and scientifically tested three different frameworks. The competing values framework we discuss here is the most widely used. It also was named one of the 40 most important frameworks in the study of organizations and has been shown to be a valid approach for classifying organizational culture.33 We will also discuss relation- ships among culture types and outcomes. Identifying Culture Types with the Competing Values Framework The competing values framework (CVF) provides a practical way for managers to understand, measure, and change organizational culture. It identifies four fundamen- tal types of organizational culture—clan, adhocracy, hierarchy, and market—all shown in Figure 14.4.34 The CVF was developed by a team of researchers trying to classify different ways to assess organizational effectiveness. Their research showed that measures of organiza- tional effectiveness varied along two fundamental dimensions or axes. One axis described whether an organization focuses its attention and efforts on internal dynamics and employees, or outward to its external environment and its customers and shareholders. The second axis measured an organization’s preference for flexibility and discretion over control and stability. Combining these two axes creates four types of organizational culture, each with different core values and different sets of criteria for assessing organi- zational effectiveness. Figure 14.4 shows the strategic direction associated with each cultural type (collabo- rate, create, and so on), along with the means and goals it pursues. Each type has different characteristics, and while one type tends to dominate in any given organization, it is the mix of types that creates competitive advantage. We begin our discussion of culture types in the upper-left-hand quadrant of the CVF. 14.2 THE IMPACT OF ORGANIZATIONAL CULTURE TYPES ON OUTCOMES THE BIGGER PICTURE Do you think companies rated on Fortune’s List of 100 Best Places to Work might have unique cultures? How do we know what type of culture exists at these companies or your current employer? In this section you will learn about the four types of culture defined by the compet- ing values framework. You will also discover the extent to which these four culture types are related to important outcomes. Explain how to characterize an organization’s culture. LO 14-2 Organizational Behavior: A Practical, Problem-Solving Approach 559Organizational Culture, Socialization, and Mentoring CHAPTER 14 Clan Culture A company with a clan culture  has an internal focus and values flexibility rather than stability and control. It resembles a family-type organization that achieves effectiveness by encouraging collaboration, trust, and support among employees. This type of culture is very employee-focused and strives to instill cohesion through consensus and job satisfaction, and commitment through employee involvement and development.35 Clan organizations devote considerable resources to hiring and developing their employees, and they view customers as partners. Collaborating is this culture’s strategy. EXAMPLE Blake Mycoskie, founder of Toms Shoes, the company famous for its “buy-one-give one” model, came back from a year sabbatical with a deep resolve to take care of his own employees in addition to giving shoes and backpacks to others in need. Mycoskie and his managers have made a concerted effort to implement practices to make their employees’ lives more fulfilling and balanced. Employee-friendly practices include flexible work schedules, generous paid pater- nity leave, and no-meeting Mondays. In addition, Toms is committed to better aligning its organizational culture with the company’s overall mission by getting employees involved in charitable activities. For example, as part of a “Happy Helping Hour” each month, employees work with a charitable organization in a philanthropic activity, such as preparing care packages for women in domestic abuse shelters.36 EXAMPLE Property and casualty insurance company Acuity has been consistently ranked as a top employer by Forbes, Fortune, and the American Business Awards and strongly endorses a clan culture. On the occasion of his 20th year as president and CEO of the company, Ben Salzmann remarked, “We have a tremendous team of staff and agents who are committed to doing what is right for our customers and Clan Collaborate Hierarchy Control Market Compete Adhocracy Create Means: Capable processes, consistency, process control, measurement Ends: E�ciency, timeliness, smooth functioning Means: Cohesion, participation, communication, empowerment Ends: Morale, people, development, commitment Means: Adaptability, creativity, agility Ends: Innovation, growth, cutting-edge output Means: Customer focus, productivity, enhancing competitiveness Ends: Market share, profitability, goal achievement Flexibility and Discretion External Focus and Di�erentiation Internal Focus and Integration Stability and Control FIGURE 14.4 The Competing Values Framework Culture varies along two axes of competing values: flexibility and discretion vs. stability and control, and internal focus and integration vs. external focus and differentiation. This leads to four categories of organizations, each with its own unique character. SOURCE: Cameron, Kim S., Robert E. Quinn, Jeff Degraff, and Anjan V. Thakor. Competing Values Leadership: Creating Value in Organizations. Northampton, MA: Edward Elgar Publishing, 2007. Organizational Behavior: A Practical, Problem-Solving Approach 560 PART 3 Organizational Processes working toward our mutual success. I simply could not ask to work with better people.” Employees have generous perks and are empowered to participate in the way the company is run. The end result is profitability and an enviably low 2 percent turnover rate.37 Adhocracy Culture The term adhocracy reflects an organi- zation with less structure and bureaucracy. It also reflects a man- agement team focused on responding to problems rather than avoiding them. Companies with an adhocracy culture  have an external focus and value flexibility. Creation of new products and services is their strategy, which they accomplish by being adaptable, creative, and fast to respond to changes in the market- place. Adhocracy cultures do not rely on the centralized power and authority relationships that are part of market and hierarchi- cal cultures (see below). They encourage and empower employ- ees to take risks, think outside the box, and experiment with new ways of getting things done. An article in The Wall Street Journal noted that adhocracy cultures are decreasing in the United States as many compa- nies are becoming risk-averse. The downside of this trend is that a certain amount of reasonable risk taking is necessary to create new businesses, products, and ultimately jobs. On the positive side, however, risk taking is still occurring in indus- tries such as technology and energy, and in coastal cities such as San Francisco and Boston and college towns like Boulder, Colorado, and Austin, Texas.38 EXAMPLE As part of its mission, Menlo Innovations, a software development com- pany, is strongly committed to “restoring joy to technology,” by offering employees an open, active office environment conducive to being collaborative and taking risks (and encouraging babies and dogs to be part of the office); by partnering with clients to provide effective business solutions; and by maintaining a strict 40-hour work- week for all.39 Market Culture Companies with a market culture  have a strong external focus and value stability and control. Competition is their strategic thrust. They have a strong desire to deliver results and accomplish goals, and because they are focused on the external environment, customers and profits take precedence over employee develop- ment and satisfaction. Managers’ major goal is to improve productivity, profits, and customer satisfaction. EXAMPLE Grupo Bimbo is the world’s largest bakery company. Bimbo managers operate in a low-margin business and thus focus heavily on execution. “Profits depend heavily on getting the right amount of highly perishable products to stores at the right moment and at a reasonable cost. . . . For instance, [the company] uses tricycle delivery bikes in urban areas of China where streets are too narrow for trucks, a practice it first implemented in Latin America,” according to a Harvard Business Review author.40 Grupo Bimbo operates 171 plants and delivers more than 10,000 products to 22 countries. Clan culture is on full display at Toms Shoes with management making a concerted effort to imple- ment practices to make employees’ lives more fulfilling and balanced. Yonhap News/YNA/Newscom Organizational Behavior: A Practical, Problem-Solving Approach 561Organizational Culture, Socialization, and Mentoring CHAPTER 14 EXAMPLE Publix Super Markets, the largest employee-owned supermarket chain in the United States, was ranked Fortune’s 12th of 100 best places to work in 2019. The company is highly customer-focused and trains and rewards employees to provide friendly and helpful service.41 According to a recent American Customer Satisfaction Index, Publix had the highest customer satisfaction score of any company in the retail sector.42 Hierarchy Culture Control is the strategy within a hierarchy culture. The hierarchy culture  has an internal focus, which produces a more formalized and structured work environment, and values stability and control over flexibility. This orientation leads to the development of reliable internal processes, the extensive use of measurement, and the implementation of a variety of control mechanisms. Effectiveness is likely to be measured in terms of efficiency, timeliness, quality, safety, and reliability in producing and delivering products and services.43 EXAMPLE McDonald’s relies on the benefits of a hierarchical structure to effectively manage its vast business operations throughout the world. However, that doesn’t mean that top management is content with the status quo. The com- pany has made several key changes to the company’s organization and culture in an effort to shake things up, including moving the corporate offices from suburban Chicago to the city in an effort to attract younger employees; implementing self- ordering kiosks at many stores; and reshaping the company’s structure to create a sense of urgency and agility across various departments.44 Imagine having to deliver over 10,000 products to 22 countries. Do you think this takes a lot of planning and detailed execution? Bimbo’s market-based culture contributes to this effort. Scott Olson/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 562 PART 3 Organizational Processes Cultural Types Represent Competing Values The four cultural types include some opposing core values. The internal values associated with clan and hierarchy can conflict with the external ones associated with adhocracy and market cultures. Similarly, the flexibility and discretion associated with clan and adhocracy cultures are at odds with the stability and control values endorsed by companies with hierarchy and market cultures. These conf licts matter because an organization’s success may depend on its ability to act on core values associated with competing cultural types. While this is difficult to pull off, it can be done. Video game developer Activision Blizzard is a good example. Activision Blizzard Integrates Clan and Adhocracy Cultures OB in Action If you like video games, you’ve probably played one from Activision Blizzard, a leading developer of blockbusters like Call of Duty, World of Warcraft, and Guitar Hero. Despite some recent weaken- ing  in its player base and competition from new entries like Fortnite, Activision remains a strong performer, with hundreds of millions of monthly active users and record sales and earnings in 2018. It ranks 96th on Forbes’ list of 100 best places to work for 2019, with more than 5,000 employees worldwide.45 Activision’s culture appears to be a combination of all four culture types, but with an emphasis on clan and adhocracy (see Figure 14.5). One employee described it this way: “We are lucky to work in a busi- ness where imagination, creativity, and play aren’t only encouraged, they’re required.”46 Bobby Kotick, Activision Blizzard CEO, reinforced this belief by say- ing, “Everything we do starts with our employees’ tal- ent, inspired creativity, and commitment to excellence.” The culture is noted for being inspira- tional, creative, and fun.47 Flexible Internal External Clan Adhocracy Hierarchy Market 50 50 5050 50 25 25 2525 Control FIGURE 14.5 Graph of Activision’s Culture Based on multiple articles describing the work environment at Activision Blizzard. McGraw-Hill Global Education Holdings, LLC. Organizational Behavior: A Practical, Problem-Solving Approach 563Organizational Culture, Socialization, and Mentoring CHAPTER 14 Are you curious about the type of culture that exists in a current or past employer? Do you wonder whether you possess person–organization fit? Self-Assessment 14.1 allows you to consider these questions. Clan Dominates One of the company’s mantras is “Gamers + gaming = fun.” “Activision Blizzard is a community of people who love to have fun together, and our employee camaraderie is fueled by our pas- sion for gameplay,” according to the company’s web- site.”48 This cultural characteristic is reinforced via the Gaming Zone. Great Place to Work described the Gaming Zone as  “the heart of Activision Bliz- zard’s headquarters. Employees are encouraged to play games during their breaks, and the company regularly hosts tournaments and biweekly get- togethers like Gaming Zone Game Night, where employees play video games together.”49 Personal development is encouraged. For exam- ple, Activision Blizzard Studio Summit is an annual event at which game development teams meet to discuss experiences and learn from each other. Great Place to Work noted that “development teams share their combined knowledge and annual find- ings across a variety of disciplines, including audio and talent, art, design, animation, programming, and production.”50 Other developmental activities include a Master’s in the Business of Activision (the compa- ny’s self-made MBA program) and Blizzard Academy, where experts teach specialized classes.51 Other clan-related characteristics include a host of positive employee perks such as company-paid health benefits, a wellness program, free food and beverages, massage therapy, and work–life balance programs.52 Adhocracy Dominates Creativity is at the core of Activision’s success. “Bringing Activision Blizzard’s franchises to our audiences is a massive, complex, and very creative process,” says CEO Kotick. “I  think of our teams as symphony orchestras, because they work hard to bring so many details together in perfect harmony.”53 The company uses its Cultural Enrichment Series to foster innovation and creativity. Part of the series consists of TED-type talks called Activisionaries. “This speaker and concert series features inspira- tional leaders, entrepreneurs, world-class athletes, military leaders, best-selling authors, musicians, and others. The events not only provide intellectual stim- ulation and consistent opportunities for community- gathering, but also instill a sense of creativity that inspires and guides our culture.”54 YOUR THOUGHTS? 1. What is the cultural thread that enables Activi- sion to have a culture dominated by clan and adhocracy? 2. Do you think Activision’s cultural profile is the best one for a company whose strategic goal is to grow its business? Explain. 3. Would you like to work at Activision? Why or why not? What Is the Organizational Culture at My Current Employer? Please be prepared to answer these questions if your instructor has assigned Self- Assessment 14.1 in Connect. 1. How would you describe the organizational culture? 2. Do you think this type of culture is best suited to help the company achieve its strategic goals? Explain. SELF-ASSESSMENT 14.1 Organizational Behavior: A Practical, Problem-Solving Approach 564 PART 3 Organizational Processes Outcomes Associated with Organizational Culture Both managers and academic researchers believe organizational culture can influence outcomes at the individual, group, and organizational levels of the OB Organizing Framework. A team of researchers tested this hypothesis by conducting a meta-analysis of more than 38,000 organizational units and 616,000 individuals: An organizational unit is either an organization as a whole or departments in different organizations. Figure 14.6 summarizes the findings.55 Figure 14.6 illustrates the strength of relationships among nine organizational outcomes and the four culture types. As you probably expected, culture is positively associated with a variety of outcomes. Most relationships were of moderate strength, meaning they are important to today’s managers. Closer examination of Figure 14.6 leads to the following six conclusions: 1. Organizational culture is related to organizational effectiveness. This means an organi- zation’s culture can be a source of competitive advantage. 2. Employees have more positive work attitudes when working in organizations with clan cultures. Employees clearly prefer to work in organizations that value flexibility over stability and control, and those that are more concerned with satisfying employees’ needs than with customer or shareholder desires. FIGURE 14.6 Correlates of Clan, Adhocracy, Market, and Hierarchy Organizational Cultures SOURCE: Results were based on A. Ou, C. Hartnell, A. Kinicki, E. Karam, & D. Choi, “Culture in Context: A Meta-Analysis of the Nomological Network of Organiza- tional Culture.” Presentation as part of a symposium, titled “Connecting Culture and Context: Insights from Organizational Culture Theory and Research,” at the 2016 National Academy of Management Meeting in Anaheim. Positive work attitudes Positive employee behavior Customer satisfaction Market share Operational e�ciency Product/service quality Innovation Financial performance Financial growth Clan Adhocracy Market Hierarchy Moderate StrongWeakNot significant Va ria bl es Strength of relationship Organizational Behavior: A Practical, Problem-Solving Approach 565Organizational Culture, Socialization, and Mentoring CHAPTER 14 3. Clan and market cultures are more likely to deliver higher customer satisfaction and market share. We suspect this result holds because the positive employee attitudes associated with clan cultures motivate employees to provide better cus- tomer service. 4. Operational outcomes, quality, and innovation are more strongly related to clan, adhoc- racy, and market cultures than to hierarchical ones. Managers should avoid the use of too many rules and procedures—hierarchical characteristics—when trying to improve these outcomes. 5. An organization’s financial performance (profit and revenue growth) is not strongly related to organizational culture. Only market and hierarchy cultures were associ- ated with financial outcomes. Managers should not expect to im mediately increase financial performance when they try to change their organization’s culture. This underscores the conclusion that culture change needs time to take hold. 6. Companies with market cultures tend to have more positive organizational outcomes. Managers should make their cultures more market oriented. Subcultures Matter Thus far we have discussed organizational culture as if a company possessed a single homogeneous culture. Most don’t. Rather, organizations develop subcultures.56 Two OB scholars describe organizational subcultures as consisting of “distinctive clus- ters of ideologies, cultural forms [clan, adhocracy, market, hierarchy], and other practices that identifiable groups of people in an organization exhibit.” They tend to vary from a company’s overall culture, “either intensifying its understandings and practices or diverg- ing from them.”57 Subcultures tend to form along the following lines, often leading to noticeably different cultures: • Functional/occupational groups • Geographical areas • Products, markets, or technology • Divisions or departments • Levels of management—senior management versus supervisors • Work role—firefighter versus salesperson58 While subcultures develop naturally, senior leaders should link them with “common goals, common language, and common procedures for solving problems,” according to OB expert Edgar Schein.59 You don’t want highly different subcultures to develop, because they can lead groups to focus on different goals, customers, or values, which lowers unit and organizational performance.60 Such culture clashes frequently happen when subcultures within an organization interpret rules differently based on their levels within the organiza- tion. Research shows that failure to integrate subcultures within high-risk industries such as oil and gas may lead to a gap in their ability to interpret and enact safety rules, leading to different levels of rule compliance.61 Organizational Behavior: A Practical, Problem-Solving Approach 566 PART 3 Organizational Processes Edgar Schein, who has written a great deal about organizational culture, believes the creation and management of culture is a leader’s most important role.62 We agree, because culture can be a source of competitive advantage. You may not think organiza- tional culture is important to you now while you’re still in school. However, after gradua- tion when you’re out in the real world looking for a job and trying to decide which company to pursue in your job search, you will want to learn about the company’s culture and why (or why not) it would be the ideal place to start or continue your professional career. Consider companies like Apple, Google, and Facebook. As suggested by Figure 14.2, the cultures at these companies were first formed by their founders—Steve Jobs at Apple, Larry Page and Sergey Brin at Google, and Mark Zuckerberg at Facebook. Over time, the founders embedded or reinforced their desired cultures by adopting specific types of organizational structure and implementing a host of human resource practices, policies, and procedures. It is not an easy task to change an organization’s culture, but let us look at how it can be done. First let’s review four truths about culture change. 1. Leaders are the architects and developers of organizational cul- ture. This suggests that culture is not determined by fate. It is formed and shaped by the ongoing behavior of everyone who works at a company. John Mackey, co-founder and CEO of Whole Foods Market, believes creating a healthy culture starts with strong leadership. According to Mackey, “If you are lucky enough to be someone’s employer, then you have a moral obliga- tion to make sure people do look forward to coming to work in the morning.”63 2. Changing culture starts with targeting one of the three levels of organizational culture—observable artifacts, espoused values, or basic underlying assumptions. The fastest way to start a culture change project is through the use of observable artifacts. For example, if you wanted to foster a market culture, you could post graphs of performance metrics around the office to reinforce the value of high performance. That said, culture will not change in a significant way unless managers are able to change basic underly- ing assumptions.64 It takes time to alter this deep-seated compo- nent of culture. 14.3 MECHANISMS OR LEVERS FOR CULTURE CHANGE THE BIGGER PICTURE Some people suggest that culture change takes years, whereas others believe leadership actions can change culture more quickly. Yet others contend that culture evolves and manag- ers should not attempt to manage it. Where do you stand? We believe culture can and should be nurtured and developed so it aligns with a company’s vision and strategic plan. You will learn about 12 mechanisms or levers you can use to implement culture change. We discuss them in the context of the managerial role, but knowing these techniques helps you at any level in the organization. Describe the process of culture change in an organization. LO 14-3 Sergey Brin (left) and Larry Page met as Ph.D. students at Stanford. They created the first version of the algorithm underlying searches while students, and then incorporated Google after graduation. Today, Brin is president of Alphabet, Inc., Google’s parent company, and Page is the CEO. Although Google is somewhat secretive about the number of searches it conducts, the best estimate is more than 5 billion a day. Matthew Staver/Bloomberg/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 567Organizational Culture, Socialization, and Mentoring CHAPTER 14 3. The current culture probably closely aligns with the organization’s vision and strategic plan. Remember the quote “culture eats strategy for breakfast” whenever you pursue culture change. An organization’s culture must be consistent with its vision and strate- gic goals. A vision  is a long-term goal that describes what an organization wants to become. A strategic plan  outlines the organization’s long-term goals and the actions necessary to achieve them. EXAMPLE Although culture change is an organizationwide process, it must start at the top. At Novelis, an industrial aluminum company in Atlanta, Georgia, several cul- ture initiatives failed because one leader in particular was reluctant to support the process, according to the company’s HR director. The company began to see real results once leadership committed to the culture shift within the organization. It’s important that every member of the executive team align around the same goals or the change won’t take hold.65 4. A structured approach works best when implementing culture change. Our experi- ence as consultants tells us that culture change frequently meets with resistance. People become accustomed to the culture they know and prefer to leave things as they are. Chapter 16 outlines several techniques you can use to overcome such resistance. Let’s now consider the specific methods or techniques managers can use to change an organization’s culture. 12 Mechanisms or Levers for Creating Culture Change OB experts have proposed 12 mechanisms or levers for changing organizational cul- ture. These levers can be pushed to create a preferred type of culture or they can be pulled to reduce a particular culture type. Changing culture amounts to pushing and pulling these levers to create a culture profile that is best suited to help an organization achieve its goals. Any of these levers can be used to foster any of the culture types previ- ously discussed. Table 14.1 shows the relationship between these levers and the three levels of organizational culture.66 Let’s consider how these levers can be used to create culture change. 1. Formal Statements Formal statements of organizational philosophy, mission, vision, values, and materials can embed culture when used for recruiting, selection, and socialization. They represent observable artifacts. EXAMPLE Equipment manufacturer Caterpillar has a vision of “a world in which all people’s basic needs—such as shelter, clean water, sanitation, food and reli- able power—are fulfilled in an environmentally sustainable way and a company that improves the quality of the environment and the communities where we live and work.” EXAMPLE The vision of the Alzheimer’s Association is quite simply “a world without Alzheimer’s disease.”67 2. Design of Physical Space, Work Environments, and Buildings Physical spacing among people and buildings and the location of office furniture are different ways to send messages about culture. For example, an open office environment is more appropriate for an organization that wants to foster collaboration and innovation. Organizational Behavior: A Practical, Problem-Solving Approach 568 PART 3 Organizational Processes EXAMPLE Instagram’s New York office is picture perfect to post on its own social media site. From the two-floor high living plant wall complete with modern, inviting chairs that add a pop of color to the giant mirror located at the top floor’s stairwell and the most popular corner for selfies, the office is designed to be functional, flexible, and fun.68 3. Slogans, Language, Acronyms, and Sayings Corporate slogans, acronyms, and specialized language often have a profound effect on the organization over time because they are easy to remember and repeat. EXAMPLE The New England Patriots have a tradition that started in 2003 when then-linebacker Tedy Bruschi uttered two words, “Awww yeah,” at a pre-season prac- tice. After a win over the Philadelphia Eagles early that season, Bruschi asked his MECHANISM LEVEL OF ORGANIZATIONAL CULTURE Observable Artifact Espoused Value Basic Assumption 1. Formal statements X X 2. Design of physical space, work environments, and buildings X X 3. Slogans, language, acronyms, and sayings X X 4. Deliberate role modeling, training programs, teaching, and coaching by others X X X 5. Explicit rewards, status symbols, and promotion criteria X X X 6. Stories, legends, or myths about key people and events X X X 7. Organizational activities, processes, or outcomes X X 8. Leader reactions to critical incidents and organizational crises X 9. Rites and rituals X X X 10. Work flow and organizational structure X X 11. Organizational systems and procedures X X X 12. Organizational goals and criteria throughout employee cycle (hire to retire) X X X TABLE 14.1 12 Mechanisms for Changing Organizational Culture Organizational Behavior: A Practical, Problem-Solving Approach 569Organizational Culture, Socialization, and Mentoring CHAPTER 14 teammates a question in the locker room that has become a Patriots ritual after every victory: “How do we feel about a victory?” The team responded: “Awww yeah,” and a tradition began that continues today. After Bruschi retired, several other Patriots stepped up to ask the question in the team’s locker room after a win—with a resound- ing response from their teammates. The Patriots recently filed a request with the U.S. Patent and Trademark Office to trademark “Awww yeah” for use on sporting apparel and entertainment services.69 What type of cultures are reinforced by these slogans and sayings? 4. Deliberate Role Modeling, Training Programs, Teaching, and Coaching by Others Companies such as Experian, one of the largest crediting-reporting services in the world, use collaboration to model and empower organizational change through networking. Justin Hastings, Experian North America’s chief human resource office, sees his role as “not only to supply, maintain and retain talent, but to make sure those people are motivated and see real meaning and value in their work.”70 EXAMPLE Hastings believes that organizational change doesn’t happen top-down or bottom-up in an organization but rather it tends to move side-to-side, as a result of horizontal connections among colleagues throughout the company. According to Hastings, “You can’t just build a culture from the top down. To be authentic, you have to build your culture organically, through informal networks.” He cites employees who participate in the “Le Tour de Experian” bike rides to benefit charity. He explains employees ride in the event to do some good and to have fun, but he noticed they were also building strong bonds across company boundaries. These bonds with oth- ers in the organization result in collaborations that have created value for Experian, its customers, and its employees.71 5. Explicit Rewards, Status Symbols, and Promotion Criteria Because they are meaningful and visible, reward systems have a strong impact on employees and are one of the strongest ways to embed organizational culture. For example, team-based rewards rein- force a clan culture, while individual rewards are better suited for market cultures. Dan Price, CEO of Gravity Payments, a credit card processing company, made a decision several years ago that has significantly affected the company’s culture. Recognizing that “people should come first,” Gravity Payments CEO Dan Price slashed his $1.1 million salary and raised his employees’ pay to a minimum of $70,000 annually, which has allowed employees to save for retirement and, in some instances, buy their first home. Matthew Ryan Williams/Redux Pictures Organizational Behavior: A Practical, Problem-Solving Approach 570 PART 3 Organizational Processes EXAMPLE Dan Price’s 120 employees at Gravity Payments in Seattle were stunned a few years ago when Price announced he was raising their salaries to a minimum of $70,000 a year, partly by slashing his $1.1 million pay to the same level. Since his decision, despite several bumps in the road (i.e., several key employees quitting and his brother threatening to sue him), Price says the company has more than doubled its business and added 80 more employees. Price says his employees are now in a better position to buy their first home, save for retirement, and raise their families because they make a decent salary. “The purpose of an organization is to make the humans’ lives better . . . People should come first,” Price says.72 What type of culture is promoted by this decision? 6. Stories, Legends, or Myths About Key People and Events Storytelling is a powerful way to send messages to others about the values and behaviors the organization desires. Stories reinforce characteristics of the desired culture. EXAMPLE According to myth, Steve Chen and Chad Hurley came up with the idea for YouTube when they tried to upload video to the web they had taken at a dinner party but failed. Although the founders admit the story is largely embellished, it underscores how stories can influence organizational culture.73 EXAMPLE With her elderly father snowed in, a woman called a local Trader Joe’s in Pennsylvania to see if they could deliver groceries to her stranded father. The com- pany rep said they normally don’t make deliveries but would make an exception. Thirty minutes later, groceries were delivered to the woman’s elderly father free of charge, demonstrating Trader Joe’s strong commitment to its customers.74 What type of culture does this action reinforce? 7. Organizational Activities, Processes, or Outcomes Leaders pay special attention to activities, processes, and outcomes they can measure and control. This behav- ior sends strong messages to employees about acceptable norms and behavior. For exam- ple. if you want to create an adhocracy culture, then managers would pay attention to innovation processes and outcomes such as number of patents or number of ideas submit- ted to suggestion systems. EXAMPLE Susan T. Carroll, chief regional executive officer at Inova Health System, recognized health care practitioners encounter vast amounts of data that can be used to improve patient outcomes, but too much data can make culture change difficult, if not impossible. As a result, she focused the new company culture on a narrow, mea- surable goal: do no harm to patients. By creating a simple, measurable goal that employees could support, she enabled widespread change across the organization.75 EXAMPLE GM CEO Mary Barra is trying to move the company culture toward a higher level of hierarchy and market. She started this change by establishing a vision of GM as “the world’s most valued automotive company,” and by measuring its achievement of this vision via strategic goals to improve customer satisfaction, qual- ity, and financial results. To reinforce this strategic and cultural shift, she told the company’s top 300 executives, “If you’re not in line with this vision . . . you don’t need to be here.”76 8. Leader Reactions to Critical Incidents and Organizational Crises Neuro- science research shows that people learn and pay attention to the emotions leaders exhibit. Positive emotions spread, but negative emotions travel faster and farther.77 Market cul- tures, for example, are reinforced by showing positive emotions after landing a new cus- tomer or negative emotions such as anger after losing a customer because of bad service. Consider how executives at Starbucks responded to a crisis eroding feelings of respect and inclusiveness, both of which reinforce clan culture. Organizational Behavior: A Practical, Problem-Solving Approach 571Organizational Culture, Socialization, and Mentoring CHAPTER 14 EXAMPLE Executives at Starbucks responded quickly when two black men were arrested at a company store in Philadelphia for loitering, and video of the two being led off in handcuffs went viral. A local resident filmed the incident and posted it on Twitter, writing “The police were called because these men hadn’t ordered anything. They were waiting for a friend to show up, who did as they were taken out in hand- cuffs for doing nothing.”78 Responding to the public outcry about the incident, Starbucks CEO Kevin Johnson in a statement called the incident “reprehensible,” and said the video shot by customers was “hard to watch and not representative of our Starbucks Mission and Values.”79 Johnson also announced that Starbucks would close down 8,000 U.S. stores for an afternoon of racial bias training for nearly 175,000 employees. Howard Schultz, Starbucks’ chairman, realizes that a four-hour training session on racial bias “is not going to solve racial inequity. . . but we have to start the conversation.”80 9. Rites and Rituals Rites and rituals  are the planned and unplanned activities and ceremonies used to celebrate important events or achievements. Consider how managers at Thumbtack reinforce several culture types at once. EXAMPLE When Thumbtack, an online service that matches customers with local pro- fessional services, was a start-up 10 years ago, CEO Marco Zappacosta cooked lunch for the team. As the company grew, the founders made room in their budget for an in- house chef who fed the team lunch at a big table in the middle of the office. Today, with more than 300 employees at its San Francisco headquarters, Thumbtack’s single chef has grown to a culinary team of 10 that makes lunch from scratch for everyone to nur- ture both body and spirit. Chef April Word says, “If someone gets to eat their favorite thing for lunch, they’re going to be jazzed, even if they had a meeting that didn’t go well. They’re going to be happy because their belly’s happy and it gave them something to laugh or talk about.” Facilitating both clan and adhocracy cultures, this lunch ritual helps form relationships and create ideas while enjoying a tasty meal with colleagues.81 10. Work Flow and Organizational Structure Work flow is the way work gets done—work flow and organizational structure are the way reporting relationships are orga- nized. Both can become tools for changing organizational culture. For example, encourag- ing brainstorming meetings to solve problems reinforces an adhocracy culture, whereas having weekly progress meeting encourages both market and hierarchy cultures. EXAMPLE Implementing clinical workflow changes and giving patients alternative medications to opioids may help reduce readmission rates, length of stay, and cost of care according to a recent study at Vanderbilt University Medical Center. Noting that the care transition plan from in-hospital care to out-of-hospital care seemed to be where patients were most vulnerable for opioid abuse, the research team developed a treatment pathway that combined pharmacy services, clinical education, and pain man- agement consultations in an effort to increase collaboration and communication across the care team. As a result of the workflow changes and increased collaboration, the readmission rates for patients in the study were significantly reduced.82 These work flow changes would serve to move the culture in the direction of hierarchy and market. 11. Organizational Systems and Procedures Companies are increasingly using electronic networks as a tool to promote different types of cultures. Disney, for example, has invested over $1 billion in big data technology to identify the best way to provide cus- tomer service, a characteristic of market cultures.83 EXAMPLE Disco is an artificial intelligence tool that helps employers build a culture of appreciation and recognition to improve employee retention and productivity through the use of technology and analytics. In addition, companies can assign a recognition emoji to each of their company values guiding recognition of employee achievements to align with company priorities.84 Organizational Behavior: A Practical, Problem-Solving Approach 572 PART 3 Organizational Processes EXAMPLE Lifesize Communications, a videoconferencing company in Austin, Texas, uses an internal online network to promote collaboration (clan) and increased sales (market). A salesperson recently wanted advice about how to sell a product against a competitor. To get ideas, the salesperson logged onto the net- work to access content posted by a Lifesize partner in South Africa. The content describes an approach the partner used to win business against that competitor.85 12. Organizational Goals and Criteria throughout the Employee Cycle An organization’s culture is reflected in the goals it pursues. For example. the clan-type cultures in companies such as Google and Zappos are reinforced by goals like increasing employee development, satisfaction, or involvement. Walmart has decided to foster more of an adhoc- racy and market culture in response to its strategic goal of growing revenue and market share. EXAMPLE With the goal of offering grocery home delivery in more than 100 U.S. cities (covering nearly 40 percent of all U.S. households), Walmart recently partnered with several same-day delivery companies. This strategic move is the company’s attempt to tackle one of the biggest challenges in retail: the “last mile” of delivering goods to customers who order online. Walmart’s aggressive expansion plans into grocery home delivery is in response to Amazon’s purchase of Whole Foods, which offers home delivery for online grocery orders.86 Managers have many mechanisms at their disposal to change organizational culture for the better. But what happens when managers are the reason the culture needs to change? See the Problem-Solving Application feature for more details. Sprouts Farmers Market: The Best Culture, or the Worst? Founded in 2015, Arizona-based Sprouts Farmers Market is a fast-growing organic grocery chain that prides itself on its community ties, nutrition-education efforts, philanthropic commitments, and concern for people with learning disabilities, food scarcity, and other needs. Its website advertises “Good Food. Problem-Solving Application Implementing workflow changes, increasing collaboration among the care team, and giving patients alternative medications to opioids may help reduce readmission rates, length of stay, and cost of care. Javier Larrea/Pixtal/age fotostock Organizational Behavior: A Practical, Problem-Solving Approach 573Organizational Culture, Socialization, and Mentoring CHAPTER 14 What Type of Organizational Culture Do I Prefer? Please be prepared to answer these questions if your instructor has assigned Self- Assessment 14.2 in Connect. 1. In rank order, what are your preferred culture types? 2. To what extent does your preferred culture type affect your job satisfaction? SELF-ASSESSMENT 14.2 Good People,” and the company offers an enor- mous variety of nearly 19,000 fresh and healthy fruits, vegetables, meat, dairy, and fish items that are local, seasonal, natural or organic, gluten-free, non-GMO, and grass-fed or fresh caught. Deli and bakery goods, vitamins, and beer and wine are available too. Nearly 3 million customers visit its 300-plus stores around the country each week, and Instacart orders placed online are filled within an hour.87 The company promises customers a friendly, well-trained staff eager to answer questions and offer samples, and new employees are assured of training, plenty of opportunities, and generous ben- efits.88 In 2018, Sprouts was the only Arizona-based company to earn a place on Fortune’s list of the world’s most admired companies, ranking high on social responsibility, people management, quality of products/services, and quality of management.89 That same year, however, Sprouts came in sixth on a much less prestigious list—the nation’s worst companies to work for, based on a USA Today anal- ysis of current and former employees’ reviews on the job-listing site Glassdoor.com. Only 36 percent of the employees who posted about Sprouts on Glassdoor would recommend working there, and the company’s overall rating was only 2.6 stars of a possible 5 (the average rating is 3.4). The negative factor in many of Sprouts’ reviews was company management, including what USA Today called “dozens” of complaints about “immaturity” and high manager turnover that left workers unsure about what to expect on the job. The report cited a Glass- door expert who said “company culture” was first among the top three reasons for employee satisfac- tion (the other two were “career opportunities and trust in senior leadership”).90 Apply the 3-Step Problem-Solving Approach Step 1: Define the problem Sprouts appears to be facing. Step 2: Identify the causes of the problem. What OB concepts help explain why there are such differing perceptions of the company’s culture? Step 3: Make your recommendation about which lever(s) for creating culture change might help solve Sprouts’ apparent problem. Remember Person–Organization Fit Now that we have described the four key types of organizational culture and the mechanisms managers can use to change culture, it’s time to reflect on your person–organization (P–O) fit. Recall that P–O fit reflects the extent to which your personality and values match the climate and culture in an organiza- tion. Your P–O fit matters because it links to your work attitudes and performance.91 Do you have a preference for one of the four types of culture in the CVF? Use Self- Assessment 14.2 to explore this topic. Organizational Behavior: A Practical, Problem-Solving Approach 574 PART 3 Organizational Processes Organizational socialization  is “the process by which individuals acquire the knowledge, skills, attitudes, and behaviors required to assume a work role.”92 This definition highlights that organizational socialization is a key mechanism by which organizations embed their cultures, particularly in new employees. In short, organiza- tional socialization turns outsiders into fully functioning insiders by promoting and reinforcing the organization’s core values and beliefs. This section introduces a three- phase model of organizational socialization and examines the practical application of socialization research. A Three-Phase Model of Organizational Socialization Anyone’s first year in a complex organization can be confusing. There is a constant swirl of new faces, strange jargon, conflicting expectations, and apparently unre- lated events. Many organizations treat new members in a rather haphazard, sink-or- swim manner. For example, a recent Gallup survey revealed that only 12 percent of the respondents felt their organizations did a great job of introducing new employees to organizational socialization.93 This is unfortunate because unstructured socializa- tion is associated with decreased learning, performance, and satisfaction.94 It also leads to increased turnover.95 There is a better way. Organizational behavior researcher Daniel Feldman has proposed a three-phase model of organizational socialization that promotes deeper understanding of this important process. As illustrated in Figure 14.7, the three phases are: 1. Anticipatory socialization 2. Encounter 3. Change and acquisition Each phase has associated perceptual and social processes. Feldman’s model also spec- ifies behavioral and affective outcomes that reveal how well the individual has been socialized. The entire three-phase sequence may take from a few weeks to a year to complete, depending on individual differences and the complexity of the situation. Let’s look at each phase. 14.4 EMBEDDING ORGANIZATIONAL CULTURE THROUGH THE SOCIALIZATION PROCESS THE BIGGER PICTURE Organizational culture spreads by means of a learning process. That is, people teach each other about the values and norms the organization values and rewards. Organizational socialization is one mechanism  underlying  this learning process. All of us have been socialized at one time or another. It’s a natural aspect of starting a new job at any com- pany, and it ultimately affects your work attitudes and performance. You will learn about a three-phase model of organizational socialization and practical lessons based on social- ization research. Explain the three- phase model of organizational socialization. LO 14-4 Imagine the feelings this new employee might have about starting a job. What emotions might she be experiencing? Excitement? Worry? Challenge? How can companies help new employees begin to fit in during the first few weeks of employment? Ingram Publishing/age fotostock Organizational Behavior: A Practical, Problem-Solving Approach 575Organizational Culture, Socialization, and Mentoring CHAPTER 14 Phase 1: Anticipatory Socialization The anticipatory socialization phase  occurs before an individual actually joins an organization. During this phase people acquire information about different careers, occupations, professions, and organizations that can come from many sources. An organization’s current employees are a powerful source of information. So are the Internet, social media, internships, and job fairs. Unrealistic expectations about the nature of the work, pay, and promotions are often formulated during Phase 1. Because employees with unrealistic expectations are more likely to quit their jobs in the future, organizations should offer realistic job previews. A realistic job preview (RJP)  gives recruits a realistic idea of what lies ahead by pre- senting both positive and negative aspects of the job. FIGURE 14.7 Model of Organizational Socialization SOURCE: Feldman, Daniel Charles. “The Multiple Socialization of Organization Members.” The Academy of Management Review 6, no. 2 (1981): 309–18. https:// DOI: 10.2307/257888. 1. Anticipatory socialization Recruit learns about the organization prior to joining 2. Encounter Values, skills, and attitudes start to shift as the new recruit discovers what the organization is truly like 3. Change and acquisition Recruit masters skills and roles and adjusts to the work group’s values and norms • Anticipating realities about the organization and the new job • Anticipating the organization’s needs for one’s skills and abilities • Anticipating the organization’s sensitivity to one’s needs and values • Managing lifestyle-versus-work conflicts • Managing intergroup role conflicts • Seeking role definition and clarity • Becoming familiar with task and group dynamics • Competing role demands are resolved • Critical tasks are mastered • Group norms and values are internalized Phases Behavioral Outcomes • Performs role assignments • Remains with organization • Spontaneously innovates and cooperates A ective Outcomes • Feels generally satisfied • Possesses high internal work motivation • Is highly involved with the job Outsider Socialized Insider Perceptual and Social Processes Organizational Behavior: A Practical, Problem-Solving Approach 576 PART 3 Organizational Processes EXAMPLE Comcast uses RJPs that consist of three components found on the com- pany’s job website. The first part is a description of the job and its responsibilities. The second part is a video “job trailer” that runs an average of three minutes and follows an employee through his or her day showing the types of tasks that occur on an actual workday for the position the applicant is applying for. The final part of the RJP is the application process, which involves creating a profile, applying for the position, and then following through several more steps as the application goes through the Comcast HR system.96 Research revealed that realistic job previews were related to higher performance and lower attrition from the recruitment process. RJPs also lowered job applicants’ initial expecta- tions and led to lower turnover among those who were hired.97 Phase 2: Encounter The next phase begins when the employment contract has been signed. During the encounter phase  employees come to learn what the organization is really like. It is a time for reconciling unmet expectations and making sense of a new work environment. Many companies use a combination of orientation and training programs to socialize employees during the encounter phase. Onboarding is one such technique. Onboarding  programs help employees to integrate, assimilate, and transition to new jobs by making them familiar with corporate policies, procedures, culture, and politics and by clarifying work-role expectations and responsibili- ties.98 One corporate survey revealed that nearly 66 percent of organizations say onboard- ing practices have been underutilized and only 40 percent say onboarding is effective at retaining new hires.99 There is no set way to onboard a new employee. The OB in Action box illustrates a variety of methods used at different organizations. Video gaming company Riot Games, Fortune’s 39th best place to work in 2016, has an interesting approach to onboarding. If within the first 60 days new hires decide the company is not a good fit, Riot Games pays them 10 percent of their annual salary, up to $25,000, to quit.100 Zappos similarly pays new employees a month’s salary if they believe they are a bad fit after participating in the company’s four-week onboarding program.101 Companies Use Different Approaches to Onboard Employees  OB in Action The first day on the job can be filled with boring paperwork regarding benefits and dull presentations about the company’s history, mission, and values. While these activities are important, some compa- nies try to find more creative ways for employees to spend their first few days and weeks at work. Netflix Nourishes Its Culture At Netflix, new hires are introduced to helpful coworkers as well as exec- utive managers, and they are given a significant level of responsibility from the start. The company com- municates its values with plenty of resources focused on its cultural diversity and inclusiveness programs.102 Consulting Firm Protiviti Puts New Hires in Groups A Fortune reporter stated, “The company ushers in new hires in batches, then sends them on a journey through Passport to Protiviti, a program that integrates them into the environment as they collab- orate as teams, work with peer advisers, and meet regularly with leaders.”103 Twitter Offers Lots of Support Before they reach their desk on the first day, new Twitter employees have had breakfast with the CEO and been given their company e-mail address, a company T-shirt, and a celebratory bottle of wine. They go on to a tour of the office and attend a group training session, Organizational Behavior: A Practical, Problem-Solving Approach 577Organizational Culture, Socialization, and Mentoring CHAPTER 14 after which they can settle into their workspaces, conveniently located near key colleagues who can help and answer questions. A new-hire happy hour with senior leadership takes place once a month.104 NCR Corp. Relies Heavily On an Online Portal Elec- tronics and computer hardware maker NCR Corp. has a year-long onboarding process that starts with an online portal. HR Magazine noted that this enables “new hires to interact with one another with built-in social network- ing capabilities tied to virtual learning platform CorpU. Managers can assign an onboarding plan for each new hire, track his or her progress, and solicit feedback about the individual’s performance.” HR also partnered with the company’s “marketing staff to make the portal design appealing and fun, as well as to ensure a consis- tent branded experience for all employees,” according to HR Magazine. Employees reported positive attitudes about their onboarding experiences.105 YOUR THOUGHTS? 1. Which of these onboarding methods is most appealing to you? Why? 2. Which of these onboarding methods is least appealing to you? Why? 3. How do these companies’ onboarding programs compare to experiences you may have had when starting a new job, or even when arriving on campus? Phase 3: Change and Acquisition The change and acquisition phase  requires employees to master important tasks and roles and adjust to their work group’s values and norms. Mastery will occur only when employees have a clear understanding about their roles and are effectively integrated within the work unit. Being successful in Phase 3 also requires employees to have a clear understanding of the use of social media. It is easy for you to create problems for yourself by not being aware of expectations regard- ing surfing, texting during meetings, and use of company equipment for personal mes- sages. Experts suggest setting ground rules on the first day of employment, coaching employees on norms, and discussing how guidelines have changed.106 Table 14.2 presents a list of paired socialization processes or tactics organizations use to help employees through this adjustment process. To what extent have you been adequately socialized? If your socialization level is high, then all is well. If it is medium to low, you may need to find a mentor. We discuss mentoring in the next section. Take a moment to complete Self-Assessment 14.3. It mea- sures the extent to which you have been socialized into your current work organization. Have You Been Adequately Socialized? Please be prepared to answer these questions if your instructor has assigned Self-Assessment 14.3 in Connect. 1. What is your level of socialization? Are you surprised by the results? 2. Based on your results and what you have learned about socialization, what advice would you provide to your organization to improve its socializa- tion process? SELF-ASSESSMENT 14.3 Practical Applications of Socialization Research Research suggests four practical guidelines for managers. 1. Managers should avoid a haphazard, sink-or-swim approach to organizational socializa- tion, because formalized and proactive socialization tactics positively affect new hires.107 2. More organizations today use socialization tactics to reinforce a culture that promotes ethical behavior. Managers should consider how they might best set expectations for ethical behavior during all three phases of the socialization process.108 Organizational Behavior: A Practical, Problem-Solving Approach 578 PART 3 Organizational Processes ALTERNATIVE TACTICS AND DESCRIPTION WHICH IS THIS AN EXAMPLE OF? Collective vs. Individual Example Grouping newcomers and exposing them to a common set of experiences. Treating each newcomer individually and exposing him or her to more or less unique experiences. All new hires attend an orientation session on the same day. Formal vs. Informal Example Segregating a newcomer from regular organization members during a defined socialization period. No effort to clearly distinguish a newcomer from more experienced members. Army recruits must attend boot camp before they are allowed to work alongside established soldiers. Sequential vs. Random Example The newcomer completes a fixed progression of steps culminating in his or her new role. No clear steps are given and progression is ambiguous or dynamic. Doctors must follow a sequence from medical school to internship to residency before they are allowed to practice on their own. Fixed vs. Variable Example Management setting a timetable for the assumption of the role. Management setting no timetable and relying on contingencies for assumption of the role. American university students typically spend one year apiece as freshman, sophomores, juniors, and seniors. Serial vs. Disjunctive Example The newcomer is socialized over time with the help of an experienced organization member. The newcomer is not provided a role model. A buddy system is used during orientation. Investiture vs. Divestiture Example The affirmation of a newcomer’s incoming global and specific role identities and attributes. The denial and stripping away of the newcomer’s existing sense of self and the reconstruction of self in the organization’s image. During police training, cadets are required to wear uniforms and maintain an immaculate appearance; they are addressed as “officer” and told they are no longer ordinary citizens but repre- sentatives of the police force. TABLE 14.2 Socialization Tactics Examples in each row illustrate one or the other of the alternatives. Which one appears in the example? SOURCE: Ashforth, Blake. Role Transitions in Organizational Life: An Identity-Based Perspective. Mahwah, NJ: Routledge, 2000. Organizational Behavior: A Practical, Problem-Solving Approach 579Organizational Culture, Socialization, and Mentoring CHAPTER 14 3. Support for stage models is mixed. Although there are different stages of socializa- tion, they are not identical in order, length, or content for all people or jobs.109 Man- agers should use a contingency approach to organizational socialization. In other words, keep in mind that different techniques are appropriate for different people at different times. 4. Research finds that expatriates, workers who take an assignment in a foreign country, experienced different socialization activities than other newcomers. In turn, these dif- ferent experiences affected their long-term success and job satisfaction.110 Regardless of how well your employee handles the socialization process, you can improve your own socialization experience. The Applying OB box provides recommenda- tions for improving three skills essential for success at a new job. Applying OB Key Skills Needed for Success in a New Job111 1. Introducing yourself to strangers. Don’t assume others will not want to meet you or are too busy to spend time with you. As a new employee you are expected to reach out and meet people. Gain con- fidence in this activity by practicing your opening lines. It helps to write them down, rehearse, and experiment with different approaches. Preparing a list of initial questions to ask people will help you demonstrate interest and motivation. When talking with others, try to make them feel heard, valued, and respected. People will remember this more than specific details about yourself. Finally, write down what you learn about others and consult it when you are next going to meet them. 2. Remembering people’s names. Neuroscientists have shown that we encode and remember names differently than other details about people, such as their faces, jobs, or family status. This tells us that weak neural connections exist between some- one’s face and name. You can overcome this draw- back by using a few key techniques: a. Make a commitment to pay attention to people when you first meet them. b. Repeat the name in your mind several times and use it during the conversation. c. Write down the name as soon as you can to increase recall. d. Create a mental picture that provides a clue to the person’s name, because we remember things or objects better than names. For exam- ple, when meeting Angelo, picture an angel. e. Use cheat sheets before going to events or meetings. Review the names and backgrounds of people you expect to see during such encounters. 3. Asking good questions. Research shows “the more questions new employees ask and the more help they seek, the better they perform . . . ques- tion askers are also more satisfied in new jobs and more committed to new organizations.”112 The learning point is that most new employees do not ask enough questions. Here are a few ideas for asking better questions: a. Be clear in your mind about what you want. The clearer you are, the easier it is to ask the right questions. b. Find the best person to answer your questions. If it is someone you just met, ask him or her whether you can contact them later for advice. c. There are no dumb questions coming from new employees. Just ask what is on your mind. d. Ask pointed questions. If you want a specific piece of information, ask a closed question such as, “When is the report due?” If you want more detailed information, ask an open-ended question such as, “What is the process for com- pleting an expense report?” e. Show appreciation and gratitude to those who answer your questions. f. Find a “newbie buddy,” a peer who can be your initial “go-to” person for questions. CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 580 PART 3 Organizational Processes 14.5 EMBEDDING ORGANIZATIONAL CULTURE THROUGH MENTORING The modern word mentor derives from Mentor, the name of a wise and trusted coun- selor in Greek mythology. Terms typically associated with mentoring include teacher,  sponsor, peer, and coach. Sometimes people use the words mentor and coach interchange- ably. Note, however, there is a difference between terms as they relate to a working rela- tionship. Mentoring  is the process of forming and maintaining intensive and lasting developmental relationships between a variety of developers (people who pro- vide career and psychosocial support) and a junior person (the protégé, if male, or protégée, if female).113 Coaching is a process that focuses on improving an individual’s behavior and performance to resolve work issues or handle specific aspects of the job and may be short term.114 Mentoring can serve to embed an organization’s culture when developers and the protégé/protégée work in the same organization for two reasons. First, mentoring contrib- utes to creating a sense of oneness by promoting the acceptance of the organization’s core values throughout the organization. Second, the networking aspect of mentoring also pro- motes positive interpersonal relationships. Not only is mentoring valuable as a tactic for embedding organizational culture, but research suggests it can significantly influence the protégé/protégée’s future career.115 This section reviews the functions of mentoring, the role of human and social capital in mentoring, and the personal implications of mentoring. THE BIGGER PICTURE Mentoring is another mechanism for embedding organizational culture because mentors play a key role in socializing newcomers. This section can help you understand how to benefit from mentoring, which ultimately should help you obtain career satisfaction and promotions. Describe how mentoring can foster personal and professional success. LO 14-5 Mentoring is the process of forming and maintaining lasting developmental relationships between colleagues. It can serve to embed an organization’s culture because it can create a sense of oneness by promoting the accep- tance of the organization’s core values throughout the organization. Onoky/Image Source Functions of Mentoring Kathy Kram, a Boston University researcher, con- ducted in-depth interviews with 18 pairs of senior and junior managers. As a by-product of this study, Kram identified two general functions of the mentor- ing process—career and psychosocial—that occur over four phases. Table 14.3 provides examples of these functions. Five career  functions that enhanced career development were: 1. Sponsorship 2. Exposure and visibility 3. Coaching 4. Protection 5. Challenging assignments Organizational Behavior: A Practical, Problem-Solving Approach 581Organizational Culture, Socialization, and Mentoring CHAPTER 14 Four psychosocial functions were: 1. Role modeling 2. Acceptance and confirmation 3. Counseling 4. Friendship Four Phases of Mentoring The four phases of mentoring are initiation, cultivation, separation, and redefinition. The initiation phase lasts 6 to 12 months and starts during the encounter phase of socialization. Mentors socialize new employees about the values, norms, and expectations associated with the organization’s culture during this phase. If you don’t get connected to a mentor during this period of employment, we suggest SOURCES: Porter, Jane. Yes, You Need A Mentor, But A Sponsor Will Really Boost Your Career. Mansueto Ventures, LLC., September 23, 2014. https://www.fastcompany.com/3036037/yes-you-need-a-mentor-but-a-sponsor-will-really-boost-your-career; “NextGen Voices: Quality Monitoring,” Science, October 201 and Bradford, Laurence. 8 Tips For An Amazing Mentor Relationship. Forbes Media LLC., January 31, 2018. https://www.forbes.com/sites/laurencebradford/2018/01/31/8-tips-for-an-amazing- mentor- relationship/#14b22bba21e2. FUNCTIONS EXAMPLES Career Sponsorship Mentor advocates for protégé/protégée, possibly put- ting reputation on the line by suggesting him/her for challenging projects or additional assignments. Exposure and visibility Mentor introduces protégé/protégée to industry col- leagues at professional meetings and offers sugges- tions for other networking opportunities. Coaching Mentor provides advice to protégé/protégée regard- ing development of additional skills to expand job experience portfolio. Protection Mentor defends actions/decisions of protégé/protégée to others while at the same time providing him/her with constructive feedback regarding actions/decisions. Challenging assignments Mentor encourages protégé/protégée to take on projects outside his/her comfort zone in effort to gain more experience and expand career opportunities. Psychosocial Role modeling Mentor works with protégé/protégée to think critically about specific situations that might occur in work/ personal contexts and provides advice. Acceptance and confirmation Mentor helps protégé/protégée develop a sense of competence and self-identity. Counseling Mentor provides advice to protégé/protégée about positive and negative relationships with others in the organization. Friendship Mentor and protégé/protégée build relationship on mutual respect, loyalty, and trust that may help both individuals in their professional and personal lives. TABLE 14.3 Examples of Career and Psychosocial Functions of Mentoring Organizational Behavior: A Practical, Problem-Solving Approach 582 PART 3 Organizational Processes actively seeking someone out. The cultivation phase spans two to five years and entails the protégé/protégée receiving a host of career and psychosocial guidance. Your ability to learn the ropes and master the tasks during this phase is essential for future promo- tions. In the separation phase you detach from your mentor and become more autono- mous. During the redefinition phases, you and your mentor start interacting as peers.116 Benefits of Mentoring Mentoring leads to more positive outcomes for the protégé/protégée when several conditions are present, some of which the protégé cannot control. • Both mentor and protégé/protégée possess emotional intelligence. • The mentoring relationship is formal rather than informal.117 • The mentor is skilled at coaching, is a good role model, and possesses social capital.118 • The protégé/protégée possesses high levels of human and social capital—discussed in the next section.119 Human and Social Capital Enhance the Benefits of Mentoring Human Capital Human capital  is the productive potential of an individual’s knowledge, skills, and experiences. Potential  is the operative word in this definition. When you are hungry, money in your pocket is good because it has the potential to buy a meal. Likewise, a protégé/protégée with the right combination of knowledge, skills, and motivation to excel possesses human capital with the potential to give the organization a competitive advantage. Developing your human capital not only enables you to more effec- tively do your job, but it also makes you more attractive to mentors, who have options when selecting protégé/protégées. You may find this surprising, but a recent study showed that lack of sleep depletes your human capital and lowers performance.120 Get the proper amount of sleep to perform at your best. Scripps Health, a nonprofit health care system in San Diego and the 41st best place to work in 2018 according to Fortune, helps employees develop human capital by providing career coaching and administering scholarships, tuition reimbursement, and discounts for courses offered by universities that have partnerships with the company. In 2018, Scripps invested more than $35 million in employee training and provided an additional $1.33 mil- lion in tuition reimbursement and scholarships.121 Social Capital Social capital  is the productive potential resulting from relation- ships, goodwill, trust, and cooperative effort. Again, the word potential is key. Social capital helps you during the anticipatory phase of socialization. For example, a national survey of recruiters revealed that 74 percent found the highest-quality job applicants were employee referrals. Referrals also tend to stay longer at their jobs, a result of better P–O fit.122 Social capital is beneficial beyond the early stages of your career, particularly when you are developing trusting relationships with others. Trusting relationships lead to more job and business opportunities, faster advancement, greater capacity to innovate, and more status and authority.123 In addition, social capital can also lead to a form of learning called network intelligence, which draws on the knowledge of your social network,124 as described in the following example. EXAMPLE LinkedIn co-founder Reid Hoffman solved a major business problem when he was running PayPal by drawing on the knowledge of his social network. When the company was trying to launch services in Japan, PayPal continued to run into legal issues and major delays. Hoffman called eight friends with good connections in Japan and three of them mentioned the same Japanese entrepreneur. One introduction from Organizational Behavior: A Practical, Problem-Solving Approach 583Organizational Culture, Socialization, and Mentoring CHAPTER 14 one of his connections, and Hoffman was discussing the situation with the Japanese businessman. The businessman found a consultant who obtained a letter from the Japanese financial services agency that gave PayPal the go-ahead to launch its ser- vices. Shortly thereafter, PayPal Japan was up and running, and Hoffman added the Japanese entrepreneur to his social network as a friend and collaborator.125 The moral of the story is that it pays to have a rich network of good relationships. Social capital helps make that possible. The Applying OB box provides some strategies for you to consider as you begin to build your own network and seek mentors to help you along the way. Reid Hoffman, co-founder of LinkedIn Tony Avelar/AP Images Applying OB Key Strategies for Cultivating a Network and a Mentoring Relationship Here are four key strategies to consider as you begin to build your network and seek a mentor: 1. Build a broad developmental network because the number and quality of your contacts influ- ences your career success. In doing this, keep in mind the comments of two networking experts: “Relationships are living, breathing things. Feed, nurture, and care about them; they grow. Neglect them; they die.”126 Invest time in your develop- mental relationships. 2. Seek consistency or congruence between your career goals and the type of developmental net- work at your disposal. This alignment has a big influence on job and career satisfaction. For exam- ple, if you are interested in a job in finance, try to develop relationships with people with a finance background. If you want to start your own business one day, try to network with a diverse group of people. This should help broaden your under- standing of what it takes to start a business. CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 584 PART 3 Organizational Processes Are you being adequately mentored? If not, you are more likely to experience adverse work attitudes, performance, and career outcomes. Self-Assessment 14.4 was created so you can take stock of your level of mentoring. 3. A mentor’s willingness to provide career and psychosocial assistance depends on the pro- tégé/protégée’s ability and potential and the quality of the interpersonal relationship.127 This point underscores the value of building your human and social capital. 4. Develop a mentoring plan. Experts suggest your plan should include the following steps:128 • Base your mentoring goals on what you want to learn, and then prioritize them.  • Identify people who are skilled or experienced in areas where you want to improve. Don’t over- look your peers; they are a good source of func- tional, technical, and organizational knowledge. • Decide how best to build a relationship with your targeted individuals. • Figure out how you can provide value to your mentor. Because mentoring is a two-way street, others are more likely to help you if they see some value in assisting you to pursue your career goals. • Recognize when it is time to move on. Mentors are not forever. If you believe your mentor is ineffective or harming more than helping, find a new mentor. It’s easy to become stuck with one mentor. Expanding your horizons will not only benefit you, but it can help the mentor develop his or her mentoring skills as well. Assessing My Level of Mentoring Please be prepared to answer these questions if your instructor has assigned Self- Assessment 14.4 in Connect. 1. What is your level of mentoring? 2. After identifying your three lowest-scoring items in the survey, propose steps you can take to improve your level of mentoring. 3. How will you evaluate the success of these steps? SELF-ASSESSMENT 14.4 Organizational Behavior: A Practical, Problem-Solving Approach 585Organizational Culture, Socialization, and Mentoring CHAPTER 14 For an organization to be successful, managers must constantly evaluate its corporate cul- ture, recognize how the organization socializes new employees into that culture, and foster an environment of mentoring at all levels. Here are some key points to consider. 14.6 MAKING THE CONNECTION: HOW CAN I USE THESE CONCEPTS TO FIT, DEVELOP, AND PERFORM? Takeaways for Me Here are seven things you can do to turn this chapter’s lessons into positive change in your personal and professional life. 1. Person–organization fit matters: It’s important to assess your level of fit with current and future employers. Use the recommendations discussed in the Winning at Work feature at the start of the chapter to help in this effort. 2. Departments or work units contain subcultures: Be sure to assess your fit at this level, too. 3. Awareness of the 12 mechanisms for changing culture provides insight you can use to help your employer move its culture in a desired direction. 4. If you are not getting what you need to perform a new job, stop and ask for guidance: Too many companies take an ad hoc approach toward socialization, which adversely affects your level of success. 5. You can continually upgrade your human and social capital: Take ownership for enhanc- ing your skills, abilities, and developmental networks as well as your interpersonal relationships if you want to experience career advancement throughout your life; you get what you give. 6. Don’t contact mentors only when you want something: Build and maintain relationships by continuing to have regular contact with people in your developmental network. 7. Proficiency with social networking tools such as Twitter, LinkedIn, and Facebook will help you find jobs throughout your career. Takeaways for Managers There are six key implications for managers. 1. Managing organizational culture is one of the most important aspects of your job: Remember, culture eats strategy for breakfast. 2. Culture is important because it performs four key functions for employees: Use this knowledge to help employees reach their maximum potential. 3. Consider the extent to which your unit’s culture is fostering the type of work environment needed to help you achieve department goals: If the culture is conflicting with your strat- egies or goals, consider using one of the 12 mechanisms for changing culture. 4. Assess the extent to which your unit’s culture is consistent with the company’s overall culture: Make changes as needed. 5. Take an active role in socializing employees: It’s good for you and your employer. 6. We all benefit from mentoring: Spend time developing your own human and social capital. You never know when a new opportunity will arise. Describe the implications of organizational culture, socialization, and mentoring for you and managers. LO 14-6 Organizational Behavior: A Practical, Problem-Solving Approach 586 PART 3 Organizational Processes You learned that organizational culture helps managers to create competitive advantage. You examined the function and types of culture and considered how managers can change culture. Finally, you now know that socialization and mentoring are two processes organizations use to embed organizational culture. As an employee you realize how to use this knowl- edge to understand your employer’s culture and how best to fit in. Reinforce what you learned with the Key Points below. Then con- solidate your learning using the Organizing Framework. Finally, challenge your mastery of this chapter by answering the Major Questions in your own words. Key Points for Understanding Chapter 14 You learned the following key points. 14.1 THE FOUNDATION OF ORGANIZATIONAL CULTURE: UNDERSTANDING ITS DRIVERS AND FUNCTIONS • Culture is a shared concept that we learn over time. It also influences our behavior at work and outcomes at multiple levels. • The three levels of organizational culture are observable artifacts, espoused values, and basic underlying assumptions. • Espoused values are the explicitly stated val- ues and norms an organization prefers. Enacted values, in contrast, are the values and norms we actually see in employee behavior. • Four functions of organizational culture are to establish organizational identity, encourage collective commitment, ensure social system stability, and act as a device for sense- making. 14.2 THE IMPACT OF ORGANIZATIONAL CULTURE TYPES ON OUTCOMES • The competing values framework identifies four types of organizational culture. A clan culture has an employee focus. Adhocracy and market cultures have external foci that emphasize innovation/growth and market share/profitability, respectively. Hierarchical cultures are internally focused on efficiency and smooth functioning. • There are six conclusions about outcomes associated with organizational culture: (1) cul- ture is related to the way an organization measures its effectiveness; (2) employees are more satisfied and committed to companies with clan cultures; (3) clan and market cul- tures are more likely to deliver higher cus- tomer satisfactions and market share; (4) operational outcomes, quality, and innova- tion are more strongly related to clan, adhoc- racy, and market cultures; (5) an organization’s financial performance is not strongly related to culture; and (6) companies with market cul- tures tend to have more positive organiza- tional outcomes. • Subcultures should be integrated with a com- pany’s overall culture. 14.3 MECHANISMS OR LEVERS FOR CULTURE CHANGE • Here are four key points about culture change. First, leaders are the architects and developers of organizational culture. Second, What Did I Learn? Organizational Behavior: A Practical, Problem-Solving Approach 587Organizational Culture, Socialization, and Mentoring CHAPTER 14 • There are four important personal implications of effective mentoring. First, build a broad developmental network because the number and quality of your contacts influences your career success. Second, seek consistency or congruence between your career goals and the type of developmental network at your dis- posal. Third, a mentor’s willingness to provide career and psychosocial assistance depends on the protégé/protégée’s ability and potential and the quality of the interpersonal relation- ship. Finally, develop a mentoring plan. 14.6 HOW CAN I USE THESE CONCEPTS TO FIT, DEVELOP, AND PERFORM? • Assessing your level of fit with current and future employers is important to your overall success. • Stopping to ask for guidance in a new job is an important strategy for personal and profes- sional development. • Managing organizational culture is one of the most important aspects of any manager’s job. The Organizing Framework for Chapter 14 As shown in Figure 14.8, you learned that two person factors and four situation factors influence individual, group/team, and organizational pro- cesses. You now understand the power of organi- zational culture, having considered many outcomes related to it. The Outcomes box shows five individual-, two group/team-, and five organi- zational-level outcomes influenced by culture, socialization, and mentoring. Challenge: Major Questions for Chapter 14 You now should be able to answer the following questions. Unless you can, have you really processed and internalized the lessons in the the process of culture change begins with tar- geting the three layers of culture. Third, cul- ture needs to be aligned with a company’s vision and strategic plan. Finally, a structured approach works best when implementing cul- ture change. • Managers can change organizational culture in 12 ways. • Good person–organization fit is associated with positive work attitudes and performance. 14.4 EMBEDDING ORGANIZATIONAL CULTURE THROUGH THE SOCIALIZATION PROCESS • Socialization is a key mechanism organiza- tions use to embed their organizational cul- tures. It turns outsiders into fully functioning insiders. • The three-phase model of socialization pro- poses that anticipatory socialization, encoun- ter, and change and acquisition take place. • Six opposite pairs of socialization tactics are collective versus individual, formal versus informal, sequential versus random, fixed ver- sus variable, serial versus disjunctive, and investiture versus divestiture. 14.5 EMBEDDING ORGANIZATIONAL CULTURE THROUGH MENTORING • Mentoring helps embed organizational cul- ture in two ways. First, it contributes to creat- ing a sense of oneness by promoting acceptance of the organization’s values. Sec- ond, the socialization aspect of mentoring promotes a sense of membership. • Mentoring has two general functions: career and psychosocial. • Mentoring occurs in four phases: initiation, cultivation, separation, and redefinition. • The human and social capital of both parties enhance the benefits of mentoring. Organizational Behavior: A Practical, Problem-Solving Approach 588 PART 3 Organizational Processes 3. What mechanisms or levers can I use to implement culture change? 4. How can I integrate the findings of sociali- zation research with the three phases of socialization? 5. How can I use mentoring to foster personal and professional success?   chapter? Refer to the Key Points, Figure 14.8, the chapter itself, and your notes to revisit and answer the following major questions: 1. What is culture and why is it helpful to under- stand its layers and functions? 2. How are different types of organizational cul- ture related to important outcomes? FIGURE 14.8 Organizing Framework for Understanding and Applying OB INPUTS PROCESSES OUTCOMES Person Factors • Human capital • Social capital Situation Factors • Culture types • Leader behavior • Organizational climate • Human resource practices and policies Individual Level • P-O fit • Socialization • Mentoring Group/Team Level • Group dynamics • Department/unit culture Organizational Level • Culture • Socialization • Mentoring Individual Level • Work attitudes • Employee behaviors • Career outcomes • Task performance • Turnover Group/Team Level • Group/team performance • Group cohesion and conflict Organizational Level • Accounting/financial perfor- mance • Customer service/satisfaction • Innovation • Product/service quality • Operational efficiency ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. Organizational Behavior: A Practical, Problem-Solving Approach 589Organizational Culture, Socialization, and Mentoring CHAPTER 14 Ford Motor Company revolutionized the auto manufac- turing industry more than 100 years ago with the inven- tion of the assembly line, but lately the company is struggling to remain attractive to investors. Ford has experienced costly recalls and lost hundreds of millions of dollars from its international businesses in recent years.129 New tariffs on steel and aluminum have eaten up $1 billion of Ford’s profits, and Moody’s has down- graded the company’s credit rating to one level above “junk” status. By the fall of 2018, Ford’s stock price hit a nine-year low.130 Meanwhile, rival manufacturers are inching closer to delivering on new technologies like fully autonomous and connected automobiles, and Ford needs to reinvent itself to have any chance of sur- viving, let alone thriving, in its rapidly shifting competi- tive environment. But can a massive, entrenched, 116-year-old company change itself? Executive Chair- man Bill Ford believes it can, and in May 2017 he brought on CEO James Hackett to make it happen. Hackett planned to drastically alter the way Ford operated.131 Specifically, he wanted to change Ford’s culture to one that was more open-minded, creative, and adaptable so that it would be better equipped to respond to rapidly shifting market demands.132 Stake- holders had high expectations for Hackett’s ability to deliver. In the two decades he spent as CEO of Steel- case, Inc.—an office furniture company—Hackett was a strong proponent of “design thinking.” This approach to problem solving focuses on the customer—what goes through their minds and how they experience a product.133 At Steelcase, Hackett’s teams of sociologists, anthropologists, and technol- ogy experts used design thinking to transform the company from a cubicle designer to a trailblazer in today’s open, collaborative workspaces.134 Hackett was hired to bring design thinking to Ford, overhaul its culture, and reinvent the approach the automaker took to creating its products.135 Hackett made some noticeable changes right away. He reduced the number of people reporting directly to him from 18 to 8 and decreased the frequency of meetings with them to allow them more time for cre- ative thinking and decision making. He hired 28-year- old Clare Braun as his chief of staff, calling her a “reverse mentor” who would help him understand how people under 30 were thinking. Hackett also made waves by removing a plaque that commemorated for- mer CEO Alan Mulally’s “One Ford” plan. Mulally’s plan had been credited with repairing Ford’s culture and saving profits ten years earlier, but Hackett wanted to make the point that old approaches only continue to work if the past and future were identical. The space on the wall became dedicated to drawing, mapping, and diagramming out Ford’s strategy for competing in its new reality.136 Hackett favors collaboration over traditional top- down management. Many of his efforts to change the culture inside Ford’s corporate offices have centered around removing hierarchies to generate creative dis- cussions across functional areas.137 For example, Hackett launched “Team Edison” to focus exclusively on electric vehicles. The cross-functional team occu- pies an open space inside one of Ford’s former Detroit factories and, according to director Darren Palmer, knew that to succeed they needed to “be willing to challenge every truth and every process we had developed over the course of our careers.” Hackett has encouraged the team to generate ideas from mul- tiple viewpoints. According to Palmer, “On any given day you can find yourself sitting next to someone working to market our electric vehicles, someone looking at the profit potential of our electric vehicles, or be on a coffee break with someone involved in our charging strategy.”138 FRUSTRATIONS WITH HACKETT By mid-2018, approximately one year after Hackett took over, Ford’s profits were down around $1 billion. Key stakeholders were growing increasingly anxious and impatient with the fact they still didn’t understand exactly what was going on or how Hackett planned to change the company.139 Analysts began criticizing Hackett for failing to artic- ulate a compelling vision for exactly where he planned to take Ford. Morgan Stanley analyst Adam Jonas said what little Hackett had communicated was “vague and unstructured” compared to Ford’s industry competi- tors. One journalist said Hackett used “fuzzy terms more common to urbanists and businesspeople, and talking with him can feel like taking a college philoso- phy seminar after a few bong rips.”140 Issues with Hackett’s communication were present inside the company as well, where executives were often calling upon Braun, Hackett’s chief of staff, to translate Hack- ett’s diagrams and cryptic messages after meetings.141 Ford dealership owners also expressed concerns about communications from corporate headquarters. PROBLEM-SOLVING APPLICATION CASE  Cultures Clash at Ford Organizational Behavior: A Practical, Problem-Solving Approach 590 PART 3 Organizational Processes industry leader, which he sees as particularly important in Ford’s situation. Ford’s competitors are no longer limited to other auto manufacturers and now include Silicon Valley. Hackett thinks Ford’s best shot is to start thinking like a tech start-up, saying, “Corporations tend to reward action over thinking . . . But the truth is . . . you’ll find the companies that didn’t do the deep think- ing and acted quickly have to redo things.”150 Hackett acknowledges that it has been difficult for his executive team to adjust to him and his penchant for design thinking, but he believes they are starting to see the method to his madness.151 One member of his team said recently that they believe “People will look back in a few years and say, ‘I understand now.’ ”152 APPLY THE 3-STEP PROBLEM- SOLVING APPROACH TO OB STEP 1: Define the problem. A. Look first at the Outcomes box of the Organizing Framework in Figure 14.8 to help identify the important problem(s) in this case. Remember that a problem is a gap between a desired and a current state. State your problem as a gap, and be sure to consider problems at all three levels. If more than one desired outcome is not being accomplished, decide which one is most impor- tant and focus on it for steps 2 and 3. B. Cases have protagonists (key players), and prob- lems are generally viewed from a particular pro- tagonist’s perspective. Identify the perspective from which you’re defining the problem. STEP 2: Identify causes of the problem by using material from this chapter, summarized in the Organiz- ing Framework shown in Figure 14.8. Causes will appear in either the Inputs box or the Processes box.  A. Start by looking at Figure 14.8 to identify which person factors, if any, are most likely causes to the defined problem. For each cause, ask your- self, Why is this a cause of the problem? Asking why multiple times is more likely to lead you to root causes of the problem. B. Follow the same process for the situation factors. C. Now consider the Processes box shown in Figure 14.8. Consider concepts listed at all three levels. For any concept that might be a cause, ask yourself, Why is this a cause? Again, do this for several iterations to arrive at root causes. D. To check the accuracy or appropriateness of the causes, map them onto the defined problem. Jack Madden, owner of a Ford dealership in Norwood, Massachusetts, said “There’s been a lot less exposure to senior management . . . There’s just not enough information flowing down to dealers about where the company’s headed.”142 One thing Hackett did make clear was that reorga- nizing and reinventing Ford would require that the company become leaner in both its product offerings and its workforce. Hackett moved quickly and explicitly to slash Ford’s unprofitable vehicles and ventures. He announced in early 2018 that the company would dis- continue five of its sedans to focus on SUVs and trucks.143 Ford also announced in 2019 that it was closing its oldest factory in Brazil and pulling out of its South American commercial truck business.144 Hackett has been less transparent on how and when he plans to trim Ford’s workforce. While the need for some job cuts within Ford is not disputed, the manner in which Hackett has communicated about the impending lay- offs has been heavily scrutinized. Experts believe that vague statements about layoffs, along with a long pro- cess, have the potential to negatively impact employee morale. Employees may feel undue stress and begin job searching and underperforming if they worry about losing their jobs.145 IS FORD TURNING A CORNER? Ford reported first quarter earnings in 2019 that far out- paced investors’ expectations.146 Around the same time, Hackett gave what some felt was his most straight- forward statement to date. He told analysts that Ford’s two previous CEOs had allowed the company’s costs to incrementally increase so much that the company had to, as one article put it, “stop the bleeding before it could start showing gains from herculean efforts to turn the company around.” Hackett reported that by the end of 2018, the company had finally been able to put a stop to the spending and level off structural expenses. Hackett said the company would be able to move much more quickly to deliver new products to the market now that this problem had been solved.147 Ford has announced it will make substantial investments in elec- tric vehicles, and Hackett recently told CNBC that driv- ers should expect a “big surprise” on the horizon.148 Still, it’s likely that Hackett will continue to mystify Ford’s stakeholders. In an industry looking for a savior with a clear, concise plan of action, Hackett operates more like a coach. He favors using things like TED talks and Socratic exercises to slowly draw creativity and organic solutions from his people, rather than handing down personal dictates.149 Hackett’s quirky style is closer to that of a tech CEO than an auto Organizational Behavior: A Practical, Problem-Solving Approach 591Organizational Culture, Socialization, and Mentoring CHAPTER 14 B. You may find potential solutions in the OB in Action boxes and Applying OB boxes within this chapter. These features provide insights into what other individuals or companies are doing in relationship to the topic at hand. C. Create an action plan for implementing your recommendations. STEP 3: Make your recommendations for solving the problem. Consider whether you want to resolve it, solve it, or dissolve it (see Section 1.5). Which recom- mendation is desirable and feasible?  A. Given the causes identified in Step 2, what are your best recommendations? Use the content in Chapter 14 or one of the earlier chapters to pro- pose a solution. LEGAL/ETHICAL CHALLENGE Should the Citadel Change Its Socialization Practices? The Citadel—The Military College of South Carolina— was founded in 1842. It has a student body of about 2,300 undergraduates (2,121 males and 171 females) and about 1,000 graduate students. The college’s vision is “achieving excellence in the education and development of principled leaders.” Its “primary pur- pose has been to educate undergraduates as mem- bers of the South Carolina Corps of Cadets and to prepare them for post-graduate positions of leadership through academic programs of recognized excellence supported by the best features of a military environ- ment. The cadet lifestyle provides a structured envi- ronment that supports growth and development of each student’s intellect, discipline, physical fitness, and moral and ethical values.”153 In socializing new students, the Citadel uses the divestiture approach reviewed in Table 14.2. In this method, organizations attempt to strip away a new- comer’s existing sense of self and reorient it into one that conforms to the institution’s image. College Presi- dent Lt. General John Rosa said, “The cadet system is based on common uniform and standardization of cadets in appearance, actions, and privileges is essen- tial to the military system.”154 A newly admitted female student requested to wear a traditional Muslim headscarf, called a hijab. President Rosa said the school respects students’ religious views, but could not accommodate a request that would disrupt the school’s core principles. “Uniformity is the cornerstone of this four-year leader develop- ment model,” said Rosa. The school does make accom- modations for prayer and dietary needs.155 The student’s parents considered legal action because the Citadel is a public university. She ultimately chose to pursue naval officer training at Norwich University after the school honored her request to wear the hijab with her uniform. Norwich President Richard Schneider said in a statement to the higher education community, “As educa- tors of future leaders, it is our duty to matriculate a diverse student body that reflects our society . . . Norwich pre- pares traditional students and the young men and women of our corps of cadets to welcome and respect diversity and to be inclusive of all people.” 156 Solving the Dilemma Assuming you were the president of the Citadel, what would you do? 1. The college has the right to determine its own mission, culture, and socialization techniques. I would deny the request because such action is consistent with the Citadel’s mission, culture, and method of socialization. 2. The college is a public institution and it needs to be more open-minded when it comes to supporting diversity. I would accommodate the woman based on religious considerations. 3. I would deny the request because the Citadel is a military school. The prospective student knew this coming in, and she should not have applied if she could not abide by the dress code for reli- gious reasons. 4. Invent other options. Organizational Behavior: A Practical, Problem-Solving Approach LO 15-1 Describe the basics of organizational effectiveness. LO 15-2 Describe the characteristics of an organization. LO 15-3 Describe the seven types of organizational structure. LO 15-4 Explain the relationship between contingency design and internal alignment. LO 15-5 Describe the importance of innovation in any organization. LO 15-6 Explain how to assess an organization’s effectiveness. LO 15-7 Describe the implications of organizational design, effectiveness, and innovation for you and managers. After reading this chapter, you should be able to: The Organizing Framework shown in Figure 15.1 summarizes what you will learn in this chapter. The influences on key processes at the individual, group, and organi zational levels are three person factors (attitudes about freelancing, goal orientation and P–O fit) and six situation factors (organizational structure, organizational culture, organizational climate, organizational vision and values, contingency factors, and office design). The greater number of situation rather than person factors impacting processes reveals that situation factors play a more important role in explaining the OB outcomes discussed in this chapter. However, OB processes affect outcomes at all three levels. Organizational Design, Effectiveness, and Innovation15 Fe re nc S ze le pc se ny i/S hu tte rs to ck Organizational Behavior: A Practical, Problem-Solving Approach 593Organizational Design, Effectiveness, and Innovation CHAPTER 15 FIGURE 15.1 Organizing Framework for Understanding and Applying OB INPUTS PROCESSES OUTCOMES Person Factors • Attitudes about freelancing • Goal orientation • P-O fit Situation Factors • Organizational structure • Organizational culture • Organizational climate • Organizational vision and values • Contingency factors • Physical environment Individual Level • Decision making Group/Team Level • Postmortems of failure • Decision making • Communication Organizational Level • Organizational learning • Human resource policies, practices, and procedures • Communication • Balanced scorecard • Strategy maps • Innovation system Individual Level • Job satisfaction • Performance • Creativity Group/Team Level • Group/team performance • Innovation Organizational Level • Accounting/financial performance • Innovation ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. These two photos are great representations of how organizational design and innovation have changed over the years. The photo of workers on the left depicts a typical department in the early 1900s. Note the linear set of desks and the seriousness with which people are working. If you look toward the left edge of this photo you will see managers in the aisle watching over the workers. Organizations tended to be structured more hierarchically and relied on more managerial oversight. In contrast, modern day offices tend to be more open, which encourages more spontaneous interactions among coworkers. Research shows that creativity and innovation are enhanced by spontaneous interactions. SOURCE: (Left): Library of Congress Prints & Photographs Division [LC-DIG-hec-29780]; (right): Robert Daly/Caia Image/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 594 Winning at Work Working Virtually Takes Special Preparations A recent report by careers website Flexjobs reveals that 3.9 million U.S. workers—nearly 3 percent of the workforce, including freelancers—now work from home at least two or three days a week. That’s a 115 percent increase from 2005, and the number is expected to keep growing, as companies large and small both hire more freelancers and extend more flexible work arrangements to a larger pool of their in-house employees.1 Some estimates suggest that as much as a third to half the U.S. workforce could be working remotely in just the next few years.2 If you haven’t already had the experience of working from home, your odds of doing so soon are increasing all the time. Why Is It Hard to Work Virtually? Although you can work virtually from almost anywhere, most virtual work is done at home. Three primary issues make this challenging. The first is the need for personal contact and social interaction. Many of us enjoy the social contact and camaraderie that comes with working in an office. Second, many people have difficulty creating bound- aries between their work and home life. Finally, it takes dis- cipline to work from home. There are no managers or colleagues around to prompt you to get things done. Tips for Working Virtually 1. Separate work life from home life. You need dedi- cated space to work, free of clutter and distractions (like the TV). It should feel like an office, be well lit, and allow for privacy. One expert suggested that you “es- tablish ‘do not disturb’ guidelines, work hours, break times, and a policy on handling personal matters . . . no doing dishes or laundry or taking out the trash during work hours . . . treat your home office as if it were a ‘real’ office located somewhere else.”3 2. Set your work hours. Too much flexibility can lead to distractions and wasted time. Commit to specific hours just as if you were going to an office. Otherwise you may find yourself putting off your work or working around the clock to make up for it. 3. Establish and maintain a morning routine. You want your morning routine to put you into a productive mind-set. Business writer Shannon Cyr recommends that virtual workers should “take a shower, get dressed, brush your teeth, make the bed, exercise, make coffee, eat breakfast, or meditate. Regardless of what you do to start your day, the trick is to remain consistent in your routine so you give your brain a signal it’s time to start the workday.”4 4. Set expectations with family and friends. Talk to fam- ily and friends about your need to minimize distrac- tions while working from home. You need to be left alone. It must be clear that working from home doesn’t mean you are available to answer personal questions any more than if you worked at an office. Interruptions should be allowed for important issues. 5. Establish goals and to-do lists. A list of things you need to get done will help you focus on the work and avoid distractions or the tendency to procrastinate. Your author, Angelo Kinicki, works virtually and starts every day with a prioritized list of things to accomplish. 6. Communicate with people in your professional net- work. Out of sight, out of mind. Proactive communica- tion with your network is essential if you are working virtually. This obviously includes your boss and cowork- ers, but also customers, vendors, and personal contacts. We recommend that you make an effort to lunch with work colleagues and others in your network. 7. Get the desired level of human interaction. Schedule time to meet face-to-face with coworkers and friends. You will have to make a special effort because you are the one away from the office. 8. Know yourself before saying yes. Working virtually is not for everyone. It takes self-motivation, flexibility, emotional intelligence, and sensitivity to what others need.5 If you don’t have these skills, it may be better to say no to telecommuting. What’s Ahead in This Chapter This second chapter on macro OB highlights the way organizational structure and design affect organizational-level outcomes. We begin by exploring the basic foundation of an organization and then review seven basic ways organizations are struc- tured. Next, we review the contingency approach to organizational design and explore innovation and the ways in which you can foster it. We conclude by discussing the four basic effectiveness criteria used by organizations. Organizational Behavior: A Practical, Problem-Solving Approach 595Organizational Design, Effectiveness, and Innovation CHAPTER 15 THE BIGGER PICTURE Organizations have common characteristics. Understanding how these characteristics dynamically interact will help you contribute to organizational success. It will also assist you in finding an employer whose structure and culture fit with your values and needs. We begin this chapter by providing an overview of the basics of organizational effectiveness. 15.1 UNDERSTANDING ORGANIZATIONAL BEHAVIOR Organizational behavior scholars attempt to understand why organizations do what they do by treating organizations like individual entities. They isolate organizational character- istics or features such as culture, climate, and structure and determine how they dynami- cally work together to affect organizational performance or effectiveness. This chapter provides an overview regarding the impact of two organizational characteristics—organizational structure and innovation—on organizational effectiveness. This awareness is fundamental to navigating your way through organizational life and to understanding how and why managers implement organizational change. To guide our journey into organizational effectiveness, consider that all organizations have three things in common. First, all organizations have a form or structure that acts like a fingerprint. An organi- zation’s structure enables us to understand who reports to whom and how information is expected to flow across organizational levels. For example, the federal government in the U.S. is structured around many hierarchical levels, which can cause slow decision making and duplication of efforts. This structure is one reason why the federal government has a fingerprint of being sluggish and bureaucratic. In contrast, W.L. Gore, one of the 200 larg- est privately held firms in the U.S., has a very different organizational fingerprint. It is known as an innovative and nimble firm that uses a flatter structure to create the products it sells to the medical, pharmaceutical and biology, oil and gas, automotive, aerospace and semiconductor industries. Second, all organizations share the desire to be effective. For many firms this amounts to making money and satisfying employees, customers, and shareholders. For others, such as nonprofit firms like the Red Cross or United Way, their goals include feeding and housing the homeless and others in need. The point is that all organizations desire to be effective in one way or another. Finally, all organizations generally find that innovation is needed to remain in business. Innovation is a key driver of long-term orga- nizational performance. Figure 15.2 provides a broad illustration of the basic process underlying organiza- tional effectiveness. It primarily highlights the role of organizational structure and innova- tion. Starting at the far right of the diagram is the outcome of organizational effectiveness. You will learn that a tool called the Balanced Scorecard is a good method for understand- ing the criteria managers use to define organizational success. You will also learn that organizational effectiveness is fundamentally driven by the way managers design Describe the basics of organizational effectiveness. LO 15-1 Organizational Behavior: A Practical, Problem-Solving Approach 596 PART 3 Organizational Processes an organization. Organizational design represents an organization’s fingerprint or structure and is generally built around one of seven different structures. Choosing the best structure entails considering how an organization’s external and internal environments influence an organization’s mission, vision, and goals. You will learn that this is called contingency design. Figure 15.2 further shows that organizational design influences organizational innovation and ultimately organizational effectiveness. FIGURE 15.2 The Basics of Organizational Effectiveness Organizational Design • Seven Structures Organizational Innovation Organizational E ectiveness External Environment Internal Environment Organizational Behavior: A Practical, Problem-Solving Approach 597Organizational Design, Effectiveness, and Innovation CHAPTER 15 THE BIGGER PICTURE Whether they are for-profit, nonprofit, or mutual benefit, organizations possess some com- mon characteristics. The better you understand these foundations, the better prepared you will be to perform at any level of the organization. You’ll explore these commonalities and more, such as the difference between closed and open systems and the way organizations can become learning organizations. As a necessary springboard for this chapter, we formally define the term organization, clarify the meaning of organization charts, and explore two open-system perspectives of organizations. 15.2 THE FOUNDATION OF AN ORGANIZATION What Is an Organization? From a design perspective, an organization  is “a system of consciously coordinated activities or forces of two or more persons.”6 Earlier in this book, the everyday under- standing of organization was adequate for our discussions. But this formal definition is especially helpful now because the phrase “consciously coordinated” underscores the importance of organizational design. Embodied in the conscious coordination aspect of this definition are four common denominators of all organizations: coordination of effort, aligned goals, division of labor, and a hierarchy of authority.7 • Coordination of effort is achieved through formulation and enforcement of policies, rules, and regulations. • Aligned goals start with the development of a companywide strategic plan. These strategic goals are then cascaded down through the organization so employees are aligned in their pursuit of common goals. • Division of labor occurs when the common goals are pursued by individuals per- forming separate but related tasks. • Hierarchy of authority, also called the chain of command, is a control mechanism dedicated to making sure the right people do the right things at the right time. Historically, managers have maintained the integrity of the hierarchy of authority by adhering to the unity of command principle. The unity of command principle  specifies that each employee should report to only one manager. Otherwise, the argument goes, inefficiency would prevail because of conflicting orders and lack of personal accountability. As you will learn in this chapter, this philosophy of managing and structuring organizations has been replaced by more dynamic approaches.8 When operating in concert, the four foundational factors—coordination of effort, aligned goals, division of labor, and a hierarchy of authority—enable an organization to come to life and function. Describe the characteristics of an organization. LO 15-2 Organizational Behavior: A Practical, Problem-Solving Approach 598 PART 3 Organizational Processes Organization Charts An organization chart is a graphic representation of formal authority and division of labor relationships. Within each box is the name and title of a current position holder. Infor- mally, we can think of an organization chart as a family tree. To organization theorists, however, organization charts reveal much more. The partial organization chart in Figure 15.3 shows four basic dimensions of organizational structure: (1) hierarchy of authority (who reports to whom), (2) division of labor, (3) spans of control, and (4) line and staff positions. Hierarchy of Authority As Figure 15.3 illustrates, an organization has an unmistak- able structure or chain of command. Working from bottom to top, the 10 directors report to the two executive directors who report to the president who reports to the chief execu- tive officer. Ultimately, the chief executive officer answers to the hospital’s board of direc- tors. The chart in Figure 15.3 shows strict unity of command up and down the line. A formal hierarchy of authority also delineates the official communication network and speaks volumes about compensation. Research shows that the difference in pay between successive layers tends to increase over time.9 Division of Labor Our sample organization chart indicates extensive division of labor. Immediately below the hospital’s president, one executive director is responsible for gen- eral administration, while another is responsible for medical affairs. Each of these two specialties is further subdivided, as indicated by the next layer of positions. At each succes- sively lower level in the organization, jobs become more specialized. FIGURE 15.3 Sample Organization Chart for a Hospital (Executive and Director Levels Only) Board of Directors President Strategic Planning Adviser Chief Executive O�cer Executive Administrative Director Director of Human Resources Director of Admissions Director of Accounting Director of Nutrition and Food Services Director of X-Ray and Laboratory Services Director of Surgery Director of Pharmacy Chief Physician Director of Outpatient Services Director of Patient and Public Relations Executive Medical Director Legal Counsel Cost-Containment Sta€ Organizational Behavior: A Practical, Problem-Solving Approach 599Organizational Design, Effectiveness, and Innovation CHAPTER 15 Spans of Control Span of control  describes the number of people reporting directly to a given manager. Spans of control can range from narrow to wide. For example, the president in Figure 15.3 has a narrow span of control of two. (Staff assistants usually are not included in a manager’s span of control.) Narrow spans of control tend to create “taller” or more hierarchical organizations. In contrast, a wide span of control leads to a “flat” organization. The executive administrative director in Figure 15.3 has a wider span of control of five. Historically, spans of 7 to 10 people were considered best. More recently, however, corporate restructuring and improved communication technologies have increased the typical span of control.10 Although there is no consensus regarding the optimal span of control, managers should consider four factors when establishing spans of control: organizational size, man- agers’ skill level, organizational culture, and managerial responsibilities. Let’s consider each of these factors.11 1. Organizational size. Larger organizations tend to have narrower spans of control and more organizational layers, whereas smaller ones have a wider span of control. Costs tend to be higher in organizations with narrow spans due to the increased expense of having more managers. Communication also tends to be slower in narrow spans because information must travel throughout multiple organizational layers. 2. Skill level. Complex tasks require more managerial input, thereby suggesting a narrow span of control. Conversely, routine tasks do not require much supervision, leading to the use of a wider span of control. 3. Organizational culture. Narrow spans of control are more likely in companies with a hierarchical culture because they focus on internal integration and stability and control—recall Figure 14.4. In contrast, wider spans of control are more likely to be found in companies that desire flexibility and discretion, cultures characterized as clan or adhocracy. Wider spans also complement cultures that desire greater worker autonomy and participation. 4. Managerial responsibilities. The most senior-level executives tend to have narrower spans of control than middle managers because their responsibilities are broader in scope and more complex. It’s important to consider the breadth of a person’s respon- sibilities when deciding his or her span of control. Line and Staff Positions The organization chart in Figure 15.3 also distinguishes between line and staff positions. Line managers such as the president, the two executive directors, and the various directors occupy formal decision-making positions within the chain of command. Line positions generally are connected by solid lines on organization charts. Dotted lines indicate staff relationships. Staff employees   do background research and provide technical advice and recommendations to their line managers. Line managers  generally have the authority to make decisions for their units. For example, the cost-containment specialists in the sample organization chart merely advise the president on relevant matters. Apart from supervising the work of their own staff assistants, they have no line authority over other organizational members. Modern trends such as cross-functional teams and matrix structures, discussed later in this chapter, are blurring the distinction between line and staff. An Open-System Perspective of Organizations To better understand how organizational models have evolved over the years, we need to know the difference between closed and open systems. A closed system  is a self- sufficient entity. It is “closed” to the surrounding environment. In contrast, an open system  depends on constant interaction with the environment for survival. The dis- tinction between closed and open systems is a matter of degree. Because every worldly system is partly closed and partly open, the key question is: How great a role does the environment play in the functioning of the system? For instance, a battery-powered clock is a relatively closed system. Once the battery has been inserted, the clock performs its Organizational Behavior: A Practical, Problem-Solving Approach 600 PART 3 Organizational Processes time-keeping function hour after hour until the battery goes dead. The human body, on the other hand, is a highly open system because it requires a constant supply of life-sustaining oxy- gen from the environment. Nutrients and water also are imported from the environment. Open systems are capable of self-correction, adapta- tion, and growth, thanks to feedback from the environment. Whole Foods Market’s approach to the growing and selling of organic food is good example of an open system. John Mackey, cofounder and CEO of Whole Foods Market, believes this industry can benefit from systems thinking. “Organic has grown stale. Its guide- lines prohibit the use of synthetic fertilizers and pesticides, which is a good thing,” he says. But they don’t address all the burgeoning issues— from excessive water usage to the treatment of migrant laborers—facing agriculture today. And once farmers are certified as organic, Mackey believes they have little incentive to improve their practices. Whole Foods thus decided to take a more open-systems approach by imple- menting a new system called Responsibly Grown. The program measures factors such as energy conservation, waste reduction, and farm- worker welfare. As you might imagine, many local organic growers are angry about these changes, claiming they will increase their costs. Whole Foods has made some small adjustments to the program based on this feed- back, but Mackey is staying with it. He firmly believes an open-systems approach is better for consumers and the planet. In addition, with Amazon’s recent purchase of Whole Foods, it remains to be see what impact the acquisition will have on Mackey’s strong com- mitment to responsible growing and sustainability practices.12 Historically, management theorists downplayed the environment because they used closed-system thinking to characterize organizations as either well-oiled machines or highly disciplined military units. They believed rigorous planning and control would elim- inate environmental uncertainty. But that approach proved unrealistic. Drawing on the field of general systems theory that emerged during the 1950s, organization theorists suggested a more dynamic model for organizations.13 The resulting open-system model likened organizations to the human body. Accordingly, the model in Figure 15.4 reveals the organization to be a living organism that transforms inputs into various outputs. (Notice the similarity to the Input, Process, and Outcome features of the Organizing Framework for Understanding and Applying OB.) The outer boundary of the organiza- tion is permeable. People, information, capital, and goods and services move back and forth across this boundary. Moreover, each of the five organizational subsystems—goals and values, technical, psy- chosocial, structural, and managerial—is dependent on the others. Feedback about such things as sales and customer satisfaction enables the organization to self-adjust and survive despite uncertainty and change. In effect, the organization is alive. Learning Organizations In recent years, organizational theorists have extended the open-system model by adding a “brain” to the “living body.” Organizations are said to have humanlike cognitive func- tions, such as the abilities to perceive and interpret, solve problems, store information, Whole Foods Market is putting increased pressure on farms like this to produce products that are Responsibly Grown. This organic farm of green and red lettuce would need to meet Whole Foods standards if it wants to sell produce to the company. Do you think it is fair for chains like Whole Foods to create additional standards that increase a farmer’s costs? Ingram Publishing Organizational Behavior: A Practical, Problem-Solving Approach 601Organizational Design, Effectiveness, and Innovation CHAPTER 15 and learn from experience. This realization has led to a stream of research that examines the process by which organizations learn. Peter Senge, a professor at the Massachusetts Institute of Technology, popularized the term learning organization in his best-selling book The Fifth Discipline. He described a learning organization as “a group of people working together to collectively enhance their capacities to create results that they truly care about.”14 A practical interpretation of these ideas results in the following definition. A learning organization proactively creates, acquires, and transfers knowledge and changes its behavior on the basis of new knowledge and insights.15 We want to understand how organizations learn because organizational learning is positively associated with organizational performance and innovation, a topic we discuss later in this chapter.16 Researchers have shown that organizations learn by using five inde- pendent subprocesses (see Figure 15.5): information acquisition, information distribution, information interpretation, knowledge integration, and organizational memory.17 Let us consider how these processes work. FIGURE 15.4 The Organization as an Open System SOURCE: Kast, Fremont E., and James E. Rosenzweig. Organization and Management: A System and Contingency Approach, 4th ed. New York: McGraw-Hill, 1986. Technical OutputsInputs Subsystems The Organization StructuralPsychosocial Goals and Values Managerial FIGURE 15.5 The Process of Organizational Learning Organizational Learning Information Distribution Information Interpretation Knowledge Integration Organizational Memory Information Acquisition Organizational Behavior: A Practical, Problem-Solving Approach 602 PART 3 Organizational Processes Step 1: Information Acquisition Information acquisition, also known as scanning, is “the process through which an organization obtains infor- mation from internal and external sources.”18 Because this is the first step of learning, organizations should cast a wide net in their acquisition of information. For example, discus- sions about past success and failure, called postmortems, are critical sources of information. Step 2: Information Distribution Information distribution consists of the processes or systems that people, groups, or organizational units use to share information among themselves. For example, Jill Nelson, the founder of Ruby, a virtual receptionist service in Oregon, asks employees to discuss their mistakes at weekly staff meetings. Nelson com- mented, “We discuss the mistakes and what the employees learned from them. The sharing of this information sends the message that it’s OK to make a low-stakes mistake—as long as you learn from it and share your lesson with others.”19 Step 3: Information Interpretation This step is all about making sense of the infor- mation organizations have acquired and distributed. In this process people are affected by the perceptual biases discussed in Chapter 4 and the decision-making biases reviewed in Chapter 11. Step 4: Knowledge Integration Knowledge integration occurs when information is shared and accumulated across different parts of an organization. This provides more and better information for making decisions. This step can be accomplished by having post- mortems in which different people or groups present their ideas about an opportunity or problem. The point is to seek consensus about what the learned information means. Step 5: Organizational Memory Learning will not last unless the organization finds a method to save it. Knowledge needs to be put into some type of repository or organizational memory if it is to be used in the future. Organizational memory is not an object. According to a team of OB experts, it is the combined processes of “encoding, storing, and retrieving the lessons learned from an organization’s history, despite the turnover of personnel.”20 What Can Be Done to Improve Organizational Learning? We have three rec- ommendations for improving organizational learning. 1. Improve on the five steps just discussed. You might begin by using a survey to assess the extent to which your organization is already following these steps. Self-Assessment 15.1 was created so that you could make this assessment on a current or former employer. You can use the results to target organizational changes aimed at improving learning. 2. Realize that leader behavior, organizational climate, and organizational culture drive organizational learning.21 If leaders do not support a vision and culture that promote the value of learning, it won’t happen. EXAMPLE U.S. Army leaders understand this conclusion. In the 1990s, the Army coined the acronym VUCA (volatile, uncertain, complex, and ambiguous) to describe the post–Cold War operational environment it faced. To respond to this new reality, the Army moved from a threat-based force to a capability-based force, which This unit of firefighters has to rely on organizational learning to effectively fight fires. It has to work as a team while adjusting to factors such as weather, temperature, and breadth of the fire. Fire units also are known for having postmortems after a fire to discuss the lessons learned. Eric Schultz/The Huntsville Times/AP Images Organizational Behavior: A Practical, Problem-Solving Approach 603Organizational Design, Effectiveness, and Innovation CHAPTER 15 required the organization to leverage technology, align organizational structures, and establish a learning organization. Learning strategies included war game simula- tions; new concepts in tactical combat training; and a progressive system of profes- sional education to prepare leaders for the organizational change.22 3. We can all be role models of learning from failure. Failure  occurs when an activity fails to deliver its expected results or outcomes. Unfortunately, failure or mistakes are generally feared and penalized, which creates an environment of risk aversion. Bill Gates, co-founder of Microsoft, concludes, “It’s fine to celebrate success, but it’s more important to heed the lessons of failure. How a company deals with mistakes suggests how well it will bring out the best ideas and talents of its people, and how effectively it will respond to change.”23 Suggestions in the Applying OB box guide the way to learning from failure. Are You Working for a Learning Organization? Please be prepared to answer these questions if your instructor has assigned Self-Assessment 15.1 in Connect. 1. To what extent is the company a learning organization? Are you surprised by the results? 2. Identify the three items receiving the lowest ratings. Propose solutions for improving on these three areas. SELF-ASSESSMENT 15.1 Applying OB Learning from Failure  1. Conduct postmortems. Demonstrate leadership and maturity by owning your mistake, even if it’s hard. Then start at the beginning and consider everything that occurred during the project, reflecting on why it failed or a goal was missed. You may need to collect data, and you can also use the Organizing Framework to brainstorm potential causes of the failure. Reflect on what you learned regarding each of these factors: a. Customers. b. The organization’s vision, strategy, culture, climate, and internal processes. c. Yourself and those who worked on the project. d. Group dynamics. e. Organizational leadership and politics.24 2. Share the learning with others. The real value of failure comes from sharing our experiences with others.25 This is a form of “sharing best practices” in which knowledge about what led to failure identifies the best practice. Following this suggestion also destigmatizes failure and can reduce our fear of it.26 This lesson is valuable because self-preservation and fear of failure are big obstacles to innovation.27 3. Consider your goal orientation. In Chapter 6 we defined two goal orientations that influence the way we work and our willingness to learn from fail- ure. A performance goal orientation is aimed at demonstrating competence or avoiding percep- tions of incompetence. People with this orientation are less likely to take the risks needed for innova- tion. In contrast, a learning or mastery orientation focuses on learning and growing. For those with this orientation, failure is just another way to learn and develop. Employees should adopt more of a learning goal orientation if they want to increase their learning from failure.28 Organizational Behavior: A Practical, Problem-Solving Approach 604 PART 3 Organizational Processes 15.3 ORGANIZATIONAL DESIGN Organizational design  sets “the structures of accountability and responsibility used to develop and implement strategies, and the human resource practices and information and business processes that activate those structures.”29 The general idea behind the study of organizational design is that organizations are more effective or successful when their structure supports the execution of corporate strategies. Keep in mind that there is no one best structure for a company. Companies tend to change struc- ture in response to changes in the marketplace or in their strategic goals. Consider the case of McDonald’s Corporation. EXAMPLE McDonald’s recently changed its corporate structure, eliminating U.S. regional offices and implementing a “field office” approach, which resulted in layoffs at the company’s corporate level. Chris Kempczinski, McDonald’s USA President, says the new structure “is a significant shift in how we will incentivize our team, resource our system, and even how we operate here at home office to better sup- port our franchisees and restaurants.” The restructuring is expected to contribute to the company’s plan to cut $500 million in general and administrative costs by the end of 2019.30 Our consulting experience tells us that too many companies attempt structural changes to solve performance problems. For example, Sony restructured nine times between 1994 and 2009.31 A McKinsey & Co. survey of 1,890 executives supports a similar conclusion; only 8 percent experienced positive results after making structural changes. This finding is also consistent with a study of 57 reorganizations by consulting firm Bain & Co., which demonstrated that most reorgs had no effect, and some led to lower organi- zational performance.32 This section and the next provide information about how managers can increase their chances of choosing an effective organizational design. The same information will allow you to better understand which structure your employer adopts—and how you can better function and perform within that structure. We begin by reviewing three broad categories of organizational structure and then turn to the seven fundamental types of designs found in the workplace today. The follow- ing section then identifies when these structures may be most effective.33 Three Categories Our changing world means businesses develop new forms of organization to respond to emerging business opportunities. Management professor Richard L. Daft defined three eras that each contributed its own broad category of organization and focus (see Table 15.1). THE BIGGER PICTURE An organization’s design or structure is like a fingerprint. It uniquely identifies an organiza- tion and provides information about how things get done. You will learn about seven funda- mental types of organizational structures, and the implications for you at any level of the organization. Describe the seven types of organizational structure. LO 15-3 Organizational Behavior: A Practical, Problem-Solving Approach 605Organizational Design, Effectiveness, and Innovation CHAPTER 15 Traditional Design Organizations defined by a traditional approach tend to have func- tional, divisional, and/or matrix structures. Each of these structures relies on a vertical hier- archy and attempts to define clear departmental boundaries and reporting relationships. Historical Forces: Industrialization, mass production, and related capitalization. Mid- 1800s through 1970s. Rationale: With industrialization and mass production, organizations were able to achieve great economies of scale by specializing the application of labor to specific and standardized functions. Horizontal Design Organizations defined by a horizontal approach work hard to flat- ten hierarchy and organize people around specific segments of the work flow. A horizontal structure, sometimes called a team or process structure, relies on a horizontal work flow and attempts to dissolve departmental boundaries and reporting relationships as much as possible. Historical Forces: Increased complexity and increasingly rapid development cycles for new products. 1980s. Rationale: The traditional approach of dividing up work according to functions, prod- ucts, and customers frustrates managers who want to focus on bringing people together, without internal boundaries keeping them apart. If you want people to share knowledge, collaborate, and continually improve the way things are done, a horizontal design is a good option. Open Design Organizations defined by an open approach tend to have hollow, modular, or virtual structures. Each of these structures relies on leveraging technology and structural flexibility to maximize potential value through outsourcing and external collaboration. Historical Forces: Rapid technological improvements (including the Internet and mobile phones) and the rise of emerging economies (China and India) with pools of skilled workers willing to work for less than those in developed economies. Since mid-1990s. Rationale: Open designs help organizations respond more rapidly to customer and market changes. They also potentially reduce costs and increase innovation. TABLE 15.1 Categories and Eras of Organizational Design SOURCE: N. Anand and R. L. Daft, “What Is the Right Organizational Design?” Organizational Dynamics, June 2007, 329–344. CATEGORY ERA FOCUS TYPE 1. Traditional Mid-1800s through 1970s Self-contained within organization’s boundaries • Functional • Divisional • Matrix 2. Horizontal 1980s Team- and process- oriented • Horizontal 3. Open Since mid-1990s Opened beyond organiza- tion’s boundaries • Hollow • Modular • Virtual Organizational Behavior: A Practical, Problem-Solving Approach 606 PART 3 Organizational Processes The rationale of open systems led Jack Welch, former CEO of GE, to coin the term boundaryless organization. A boundaryless organization is one in which “management has largely succeeded in breaking down barriers between internal levels, job functions, and departments, as well as reducing external barriers between the association [organization] and those with whom it does busi- ness.”34 This type of structure is fluid and flexible and relies on telecommuting between geographically dispersed people using various technological tools such as texting, e-mail, social media, and other virtual methods of communication.35 It is most appropriate for businesses in fast-changing industries or environments. All the structural forms outlined in Table 15.1 are in use today. Let’s consider each design and an illustrative example. Seven Types of Organizational Structures The following seven types of organizational structure cover almost all organizations. We provide historical background, with examples and schematic diagrams for each. Functional Structure A functional structure  groups people according to the business functions they perform, for example, manufacturing, marketing, and finance. A manager is responsible for the performance of each of these functions, and employees tend to identify strongly with their particular function, such as sales or engineering. EXAMPLE The organization chart previously shown in Figure 15.3 illustrates a functional structure. Responsibility at this hospital is first divided into admin- istrative and medical functions, and within each category, directors are responsible for each of the functions. This arrangement puts together people who are experts in the same or similar activities. As a small company grows and hires more production workers, salespeople, and accounting staff, it typi- cally groups them with a supervisor who understands their function. Some organizations have concluded that using a functional structure divides people too much, ultimately creating silos within the organization. This detracts from the extent to which employees collaborate and share best practices across functions. Divisional Structure In a divisional structure,  employees are segre- gated into organization groups based on industries, products or services, customers or clients, or geographic regions. The divisional structure is some- times called a product structure or profit center approach. EXAMPLE Consumer-products giant Procter & Gamble recently reorga- nized its division structure from 10 to 6 divisional units: Beauty; Baby and Feminine Care; Fabric and Home Care; Family Care and New Ventures; Grooming; and Health Care. The company’s CEO said the reorganization will help P&G increase its agility in dealing with ongoing global volatility and com- petitive disruption.36 As with functional structures, some organizations have concluded that using a divisional structure can also create silos within the organization. Matrix Structure Organizations use matrix structures when they need stron- ger horizontal alignment or cooperation in order to meet their goals. A matrix structure  combines a vertical structure with an equally strong horizontal overlay. Functional and divisional chains of command form a grid with two command F1 F2 F3 F4 FUNCTIONAL STRUCTURE Work is organized into separate vertical functions, such as finance, sales, production, and human resources. DIVISIONAL STRUCTURE Work is organized into separate vertical divisions, which may focus on products or services, customers or clients, or even geography. D1 D2 D3 D4 Organizational Behavior: A Practical, Problem-Solving Approach 607Organizational Design, Effectiveness, and Innovation CHAPTER 15 structures, one shown vertically by function and the other shown horizontally by product line, brand, customer group, or geographic region. EXAMPLE Starbucks is highly committed to the matrix structure. The design allows the company’s three product-based divisions (coffee and related products, baked goods, and merchandise) to intersect with func- tional groups (such as HR, finance, and marketing) and three global geo- graphic divisions (Americas; China and Asia-Pacific; and Europe, Middle East, and Africa). In the U.S., Starbucks further divides its geographic divi- sions into four regional sectors. The matrix structure allows Starbucks to improve the customer experience and its overall financial performance.37 A matrix structure can also provide a reasonable counterbalance among important stakeholders, but applying it to an organization is not easy. Matrix organizations can be complex and confusing without an extra layer of collaboration and integration to effectively implement the structure. Jay Galbraith, an expert on the subject, noted that matrix structures frequently fail because management fails to create complementary and reinforcing changes to the organization’s IT systems, human resource procedures (perfor- mance appraisals, rewards, selection criteria), planning and budgeting pro- cesses, organizational culture, internal processes, and so on. He concluded, “Organization structures do not fail; managements fail at implementation.”38 This type of structure is increasingly being used by companies expanding into international markets.39 Horizontal Structure In a horizontal structure,  teams or work groups, either temporary or permanent, are created to improve collaboration and work on common projects. The horizontal approach to organizational design tends to focus on work processes. A process consists of every task and responsibility needed to meet a customer need, such as develop- ing a new product or filling a customer order. Completing a pro- cess requires input from people in different functions, typically organized into a cross-functional team (described in Chapter 8). W.L. Gore & Associates is a good example of a company that has successfully implemented this structure (see the OB in Action box). HORIZONTAL STRUCTURE Several flexible teams— T1–T4—organize around the horizontal work flow or processes. Some vertical functions remain, but they are minimized. F1 WF T1 T2 T3 T4 F2 F3 F4 MATRIX STRUCTURE The matrix can be used with a variety of vertical and horizontal elements. Shown here are four different functions (F1, F2, and so on) interlinked to four product lines (P1, P2). F1 P1 P2 P3 P4 F2 F3 F4 W.L. Gore is a technologically driven company that focuses on product innovation. It develops and man- ufactures products that provide highly reliable perfor- mance in varied environments ranging from the surface of Mars to the inside of the human heart. Today, Gore has more than $3 billion in annual reve- nue and 9,500 employees working in more than 25 countries.40 The company has been profitable every year since its founding in 1958, and it was ranked among Fortune’s 100 Best Places to Work every year from 1998 to 2017. It has also been cited as a “best workplace” in China, France, Germany, Italy, Spain, and Sweden.41 Culture and Values Founder Bill Gore wanted a company free of bureaucracy and a command and W.L. Gore & Associates Operates with a Horizontal Design OB in Action Organizational Behavior: A Practical, Problem-Solving Approach 608 PART 3 Organizational Processes The final three types of structures are all examples of open organizations. Before learning about them in more detail, find out how well suited you are for telecommuting by completing Self-Assessment 15.2. Telecommuting is a common practice in companies that use open designs. control style of leadership. To support this culture, the company promotes the following values:42 • Belief in the individual—employees are encouraged to trust and believe in each other. • Power of small teams—a team-based struc- ture with minimum hierarchy is used. • All in the same boat—employees are part own- ers through a stock plan. • Long-term view—investments are based on long-term payoffs. Organizational Structure Gore’s structure is consis- tent with its strategy and culture. It has a team-based “lattice” organization. The company website describes the structure as one with “no traditional organizational charts, no chains of command, nor predetermined channels of communication.” Employees, who are called associates, are accountable to the members of their multidisciplined teams. “Teams organize around opportunities and leaders emerge,” according to the corporate website.43 Associates are not hired for specific jobs. The corporate website indicates employees are “hired for general work areas. With the guidance of their spon- sors (not bosses) and a growing understanding of opportunities and team objectives, associates com- mit to projects that match their skills. All of this takes place in an environment that combines freedom with cooperation and autonomy with synergy.”44 Sponsors help associates adjust to this flexible work environment by providing feedback on perfor- mance and by assisting in internal networking. YOUR THOUGHTS? 1. What type of people would like to work at Gore given its structure and culture? 2. Would this type of structure enhance or reduce organizational learning? Discuss your rationale. 3. Do you think this type of structure would work in most organizations? Explain. Focusing on product innovation, W.L. Gore links organizational strat- egy, culture, and structure. Carolyn Jenkins/Alamy Stock Photo What Is Your Preference for Telecommuting? Please be prepared to answer these questions if your instructor has assigned Self-Assessment 15.2 in Connect. 1. Do you prefer telecommuting or a traditional work environment? 2. What bothers you most about telecommuting? 3. How might managers assess an employee’s preference for telecommuting during a job interview? SELF-ASSESSMENT 15.2 Organizational Behavior: A Practical, Problem-Solving Approach Gig Workers Are a Growing Force in the Labor Market More than 40 percent of U.S. workers, male and female, are now doing outsourced part-time, free- lance, or “gig” work, according to Deloitte’s 2018 Global Human Capital Trends study.46 Harvard Busi- ness Review puts the current number of indepen- dent contractors in North America and Western Europe at 150 million, and many people believe that in the future nearly everyone will do at least some freelancing, from management consulting and writ- ing to errand-running and taxi driving.47 Some gig workers are filling gaps between reg- ular jobs, while others view freelancing as a job in itself and are not looking for a traditional career. These workers enjoy the autonomy and variety that contingent work can bring. In the United States almost two-thirds of them are between 18 and 44; close to half have a bachelor’s or graduate degree and bring skills and experience to the table. “The vast majority are folks who easily could go get [tradi- tional full-time] jobs somewhere,” says Lori Williams, a vice president at software developer Gigster, whose 80 employees work with 1,000 freelancers. “They’ve chosen this lifestyle.” Each new assign- ment can be an opportunity for a freelancer to learn new skills; gigs offering little financial or other com- pensation can often be turned down.48 Gig work has clear downsides, however. Hiring on a project basis saves hollow-structure companies money; they benefit from not having to offer freelanc- ers costly benefits like medical insurance, retirement plans, paid vacations, or professional development. Freelancers’ workflow can be uneven, and working alone requires self-discipline and can be isolating. Technology is so deeply embedded in the so-called gig economy that one observer notes, “Gig workers don’t have human bosses. They work for apps.”49  Problem-Solving Application 609Organizational Design, Effectiveness, and Innovation CHAPTER 15 Hollow Structure A hollow structure,  also known as a network structure, is designed around a central core of key functions and out- sources other functions to outside companies or individuals who can do them cheaper or faster. An athletic shoe company, for example, might decide it can excel at developing new designs, owing to its design talent and knowledge of the market. Then it might find outsourcing partners to handle other activities such as manufacturing, order taking, shipping, and manag- ing employee benefits. The more processes that are outsourced, the more the resulting organization is “hollow”—and focused on what it does best. EXAMPLE Herman Miller, the furniture company, goes outside the orga- nization for design expertise. CEO Brian Walker explained the advantages: “This external network ensures that we are always taking a fresh look at problems faced by our customers without subjecting [them] to our own filters. If you have only an internal design staff, even an enormously talented one, you are inherently limited by their existing world view and experiences. Our ability to tap into a broader outside network lets us . . . get a fresh perspective on existing or emerging prob- lems.” The company also uses other organizations for manufacturing; Walker says the company is “more . . . an integrator than a manufacturer,” which makes it less resistant to new product ideas because it doesn’t have to change manufacturing processes itself.45 A hollow structure is useful when an organization is faced with strong price competi- tion and there are enough companies to perform the required outsourced processes. The growing number of hollow structures has increased demand for freelance workers. This has created an online industry that helps companies hire people for micro-tasks or short-term assignments (see the Problem-Solving Application). HOLLOW STRUCTURE Within the organization, a number of functions are outsourced. F1 F2 F3 Organizational Behavior: A Practical, Problem-Solving Approach 610 PART 3 Organizational Processes Modular Structure A modular organization, like a hollow organiza- tion, uses outsourcing. But instead of outsourcing processes, it out- sources production of parts of a product, such as components of a jet or subroutines of a software program. In a modular structure,  the com- pany assembles product parts, components, or modules provided by external contractors. The modular organization also is responsible for ensuring that the parts meet quality requirements, that they arrive in a timely fashion, and that the organization is capable of efficiently com- bining the parts into the final whole. This design is useful when a com- pany can identify product modules and create design interfaces that allow it to assemble parts into a working order. EXAMPLE A good example is Boeing, in the production of its 787 Dreamliner. Instead of using a traditional aviation manufacturing process of building an aircraft from the ground up, Boeing engaged a global group of suppliers to build some of the plane’s subassem- blies off site and then deliver them to Boeing for final assembly. According to the company, nearly 45 major companies have been involved in building the 787’s fuselage, engines, bulkhead, and other components. This approach helps keep the assembly process efficient and lowers the number of parts a company needs to keep on hand, thus reducing inventory.50 Virtual Structure The concept of virtual organizations originated in the 1990s as an outgrowth of the benefits of information technology. A virtual structure  is one whose members are geographically apart, usually work- ing with e-mail and other forms of information technology, but that generally appears to customers as a single, unified organization with a real physical location. EXAMPLE Scopic Software, a web and app developer, has more than 200 employees working in over 30 countries. Headquartered in the U.S., the company believes great software developers can be found in every part of the world, and talent Apply the 3-Step Problem-Solving Approach Step 1: Define the problem that is leading companies to rely on the gig economy. Step 2: Identify the causes of the problem. What OB theories or concepts explain why some people want to work as freelancers? Step 3: Recommend steps organizations can take to motivate, monitor, and compensate freelancers. MODULAR STRUCTURE The main part of the organization (M) is structured and managed to make it easy to plug in vendors for well-defined functions (F1 through F3) as parts of the business process. M F1 F3 F2 These employees are conducting final assembly of a Boeing 787 air- plane in the Everett, Washington, plant. The company used a global network of suppliers to build some of the plane’s components and then deliver them to Boeing for integration and final assembly. This is a classic example of a modular structure. Wang Ying/Xinhua/Alamy Stock Photo Organizational Behavior: A Practical, Problem-Solving Approach 611Organizational Design, Effectiveness, and Innovation CHAPTER 15 shouldn’t be limited by location and time zone. According to the Careers page on its website, “Scopic’s entirely virtual structure means you can work from anywhere, whether it’s a café, in bed, or on the road.” The company encourages flexible hours so employees can set their work schedule to accommodate their lifestyle and spend more time with family and friends. To stay connected, Scopic’s team members use real-time tools like Slack and Skype to facilitate communication and software tools to track productivity.51 The primary benefits of virtual structures such as Scopic Soft- ware are the ability to tap into a wider talent pool, to get things done more quickly, and to reduce costs because there is less need for physical facilities and travel budgets. Today, virtual structures are classified into two types: internal and networked.52 1. Internal virtual structures. Internal virtual structures coordinate the work of geographically dispersed employees working for one organization, such as those at Scopic Software. This structure primarily relies on the use of information technology, but it also requires managers to consider three key issues: • Do I have the right people? Not everyone is suited to work virtually, as you may have learned from taking Self- Assessment 15.2. Managers must consider the personal characteristics, needs, and values of their people who might work virtually. For example, research about effective virtual leaders revealed that constant feedback, clear communications, reliability, and trust were key competen- cies required to be a successful manager of virtual teams.53 • How often should people get together? There is no clear answer to this question. Our recommendation is to use a contingency approach. More frequent contact is needed at the start of a project, and we suggest holding regular milestone meetings online. • What type of technology should be used to coordinate activities? Remote workers can stay connected with a host of technologies. The choice depends on their skills and the resources at hand. 2. Networked virtual structures. Networked virtual structures establish a collaborative network of independent firms or individuals to create a virtual entity. The networked individuals or companies join forces because each possesses core competencies needed for a project or product. This structure is used in the movie/entertainment industry. For example, writers, producers, actors, and studios join forces to make a movie, not as one legal entity, but rather as a collaborative network. Once again, a variety of information technologies coordinates the efforts of different members within the network. Now that we have reviewed all seven designs, consider Table 15.2. It lists the pros and cons for each design and suggests situations when each may be most effective. VIRTUAL STRUCTURE One or more companies (here we show companies A and B) create or manage a wide network of virtually connected employees, represented by the dots, for a specific business process that otherwise appears as a traditional company. A B Organizational Behavior: A Practical, Problem-Solving Approach 612 PART 3 Organizational Processes TABLE 15.2 Seven Structures of Organizational Design SOURCE: Anand, N., and Richard L. Daft. “What Is the Right Organizational Design?” Organizational Dynamics 36, no. 4 (2007): 329–344. https://doi:10.1016/j.orgdyn.2007.06.001. STRUCTURE BEST FOR PROS CONS Functional F1 F2 F3 F4 Small companies, some large government organi- zations and divisions of large companies. Clear roles and responsibilities. Coordination and communication lapses across functional silos; most companies use dotted line or other informal means to combat this potential limitation. Divisional D1 D2 D3 D4 Large companies with separate divisions built on different technologies, geographies, or different bases of customers. Clear roles and responsibilities. Greater product focus, account- ability, and flexibility for workers in each division than in a functional structure. Coordination and communication lapses across divisional silos; most companies use dotted line or other informal means to combat this potential limitation. Matrix F1 P1 P2 P3 P4 F2 F3 F4 Organizations, increasingly including international ones, looking to avoid problems associated with silos by using a formal level of horizontal integration.  Lines of formal authority along two dimensions, such as func- tional/product or product/ region, that allow organizations to work more cohesively. Inadequate processes to ensure success. Potential for conflict when employees report to two bosses if those managers fail to coordinate. Horizontal F1 WF T1 T2 T3 T4 F2 F3 F4 Companies needing greater efficiency or flex- ibility to rapidly respond to customer needs. Rapid communication and reduction in cycle time for work done; greater flexibility; faster organizational learning; improved responsiveness to customers. Potential conflicts between pro- cesses and nonprocess functions; neglect of nonprocess parts of the organization; reduced opportuni- ties for functional specialization. Hollow F1 F2 F3 Companies facing heavy price competition with pressure to cut costs; companies with options outside the organization that can perform required processes. Lower cost of entry and over- head; access to best sources of specialization and technology; market discipline that leads to supplier competition and inno- vation; potential for further cost reduction and quality improvement. Loss or decrease of in-house skills, of internal capacity to inno- vate, and of control over supply; costs of transitioning to hollow state; need for higher monitoring to align incentives; danger of being supplanted by suppliers. Modular M F1 F2 F3 Organizations that can specify the nature of product modules and design interfaces to multiple vendors and join them. Potential for cost savings, greater responsiveness, and competence beyond the orga- nization’s boundaries; ability to switch vendors for best fit and product improvement. A high proportion of products unsuitable to chunking into mod- ules; poorly specified interfaces; slow or poor-quality collaborators. Virtual A B Companies that need to explore a new market opportunity by partnering with other organizations or rapidly deploy a new potential business model. Ability to respond nimbly to market opportunity; ability to provide product extension or one-stop-shop service; low exit costs if initial opportunity van- ishes. High level of communication nec- essary to avoid redundancy; low trust and coordination among widely distributed employees; failure to promote strong employee loyalty or organizational identification. Organizational Behavior: A Practical, Problem-Solving Approach 613Organizational Design, Effectiveness, and Innovation CHAPTER 15 THE BIGGER PICTURE The previous section showed that no one structure is appropriate for all organizations. This section reviews five contingency factors to consider when choosing an organizational design. We also discuss the need to align several organizational characteristics in this process and show how you can use this knowledge to enhance your personal and career outcomes.  15.4 CONTINGENCY DESIGN AND INTERNAL ALIGNMENT  There is no one best form of structure for an organization. The choice of structure is instead based on considering a host of contingency factors and internal organizational characteristics. This section helps show how this is done by discussing the concept of con- tingency organization design. According to the contingency approach to organization design,  organizations tend to be more effective when they are structured to fit the demands of the situation, and when the structure is aligned with internal activities and actions of the organization.54 The demands of the situation consist of five contin- gency factors. Contingency Factors Experts suggest that managers should consider five key contingency factors when making decisions about organization design: strategy and goals, market uncertainty, decision- making processes, technology, and size.55 Strategy and Goals An organization’s strategy is the cornerstone of its decision about the most appropriate design. Because setting a corporate strategy requires an orga- nization to decide how it will compete given both internal and external considerations, organizational design must be developed in tandem with establishing strategy. For exam- ple, if a company has a strategy to grow by developing and selling new products or services, a flatter or more horizon- tal structure may be more effective. In general, more com- plex organizational designs are needed as companies pursue strategies to add products, services, markets, or geographic expansion. Market Uncertainty The level of market uncertainty the organization faces helps determine the level of formal- ization it needs. Organizations such as Intel and Facebook that operate in dynamic markets need less formalized structures. Horizontal or open structures are more appro- priate in this case because they allow quicker responses to marketplace threats and opportunities. Organizations may need to change their structure due to marketplace changes such as new competitors, alternate products, or customer preferences. Decision-Making Processes Decision-making processes span a continuum from centralized to Explain the relationship between contingency design and internal alignment. LO 15-4 Selecting the best organizational design is akin to putting together a puzzle. The organization’s strategy, market uncer- tainty, decision-making processes, technology, and size must fit together like this puzzle. Adam Gault/OJO Images/age fotostock Organizational Behavior: A Practical, Problem-Solving Approach 614 PART 3 Organizational Processes decentralized. Centralized decision making  occurs when key decisions are made by top management. Decentralized decision making  occurs when important decisions are made by middle- and lower-level managers. A landmark study by a pair of British behavioral scientists, Tom Burns and G. M. Stalker, found a relationship between decision- making processes and organizational structure. In the course of their research, Burns and Stalker drew a very instructive distinction between what they called mechanistic and organic organizations. Mechanistic organizations  are rigid bureaucracies with strict rules, narrowly defined tasks, top-down communication, and centralized decision making. A mech- anistic organization generally would have one of the traditional organizational designs described in the preceding section and a hierarchical culture. The “orderliness” of this structure is expected to produce reliability and consistency in internal processes, resulting in higher efficiency, quality, and timeliness. Organic organizations  are flexible networks of multitalented individuals who perform a variety of tasks. Organic organizations are more likely to use decentralized decision making and horizontal or open designs.56 Burns and Stalker discovered that one type was not superior to the other. Each type had its appropriate place, depending on the environment.57 When the environment was relatively stable and certain, the successful organizations tended to be mechanistic. When the environment was unstable and uncertain, the successful ones tended to be organic.58 Technology Technology consists of the information technology, equipment, tools, and processes needed to transform inputs to outputs. It allows products and services to be created and distributed and lets companies use big data in making decisions. Experts suggest that the use of big data “will change organizational structures as orga- nizations pursue the opportunities presented.”59 This implies that the technology a company uses is a key consideration in deciding the best way to organize in pursuit of strategic goals. Size Size is measured by the number of employees, volume of sales, amount of assets, and geographical locations. Larger size generally requires more complex organizational designs. Internal Alignment  The choice of best organizational form requires more than just considering the five contin- gency factors. Organizations perform more effectively when various internal organiza- tional-level characteristics are aligned and mutually reinforcing. For example, if a company wants to grow through innovative product offerings (strategy), then it probably needs a less hierarchical structure coupled with an adhocracy and market culture. It also would help to have rewards tied to innovation and to employ people with high amounts of human and social capital. Can you see the alignment that exists among strategy, culture, structure, human resources practices, and employees’ capabilities? In contrast, if a company wants to reduce costs by improving internal processes (strat- egy), it would benefit from a more horizontal structure coupled with a hierarchical and clan culture. This combination would be enhanced if rewards were linked to cost reduction or efficiency, and if employees were knowledgeable about internal process control. Again, you can see that alignment is needed across internal characteristics for organizations to achieve higher performance. Although academics and consultants don’t completely agree on the list of internal characteristics that need to be aligned, it is safe to recommend the following for inclusion:60 1. Strategy. 4. Internal processes. 2. Structure. 5. Human resource practices, policies, and procedures. 3. Organizational culture. 6. Employees’ human and social capital. Organizational Behavior: A Practical, Problem-Solving Approach 615Organizational Design, Effectiveness, and Innovation CHAPTER 15 What Does This Mean to Me?  There are both short and long-term implications to con- sider. Short-Term Implications  • Structure affects your behavior and performance. Imagine taking a class in which the seats are arranged in a stair-step, theater-style set of rows in which chairs are bolted to the ground. You can swivel in your chair, but your position is set. Now consider how this structure affects your interac- tions with other students. You will tend to speak with others on either side and will struggle to do group work with four to five people. It’s inconve- nient to turn and observe someone speaking from the back of the room. This structure also stops instructors from walking into the audience and interacting with students as in a talk show. Con- trast this with a classroom with a flat floor and round tables with five or six students at each. Inter- actions and group work are both easier and more efficient. You can move to another table if you want. The instructor can easily walk around and interact with everyone. The point is that structure affects behavior. The value of understanding the various types of organization design is that you can work around their strengths and limitations. • You may want to start your own company. Yesterday, the owner of an appliance repair company came to the home of your author to fix an ice maker and dishwasher. He has 15 employees. When asked how he structured his small company, he said everyone reports to him, but this structure is getting overwhelming and he needs someone to focus on getting new customers. He is the only person doing this, but he also has to do repairs on certain types of equipment like those in our home, leaving him less time to cultivate new business. We discussed how he might use a divisional structure based on having offices in cities within the Phoe- nix metropolitan area and creating incentives for those who bring in new customers. He was thankful for the free advice. You need to know about various organizational designs if you ever start your own company. • Person–organization (P-O) fit matters. In Chapter 14 we defined P-O fit as the extent to which your personality and values match the climate and culture in an organization. You also learned that P-O fit is related to a host of important out- comes such as job satisfaction, engagement, commitment, performance, and turn- over. You will be happier, healthier, and more productive when you fit.61 For example, if you prefer autonomy, flexibility, and empowerment, then you probably won’t fit into a company with a mechanistic structure. You would be much happier with an organic type of structure.62 Knowledge about organization design can help you find a work environment that fits. Long-Term Implications Decisions about organizational design generally are made by senior leaders and consultants in medium and large firms. We have participated in this process and it can get quite complicated. Assuming you want to move up the managerial hierarchy, the day will come when you have to provide input on organizational designs that can help your employer meets its strategic goals. Our discussion here will help. How many times have you sat in a lecture hall or classroom structured like the top photo? The experience is quite dif- ferent from a small group meeting in which participants interact in a less formal fashion. Both contexts have their place, and our behavior is affected by the structure of a the learning environment. (Top): Aaron Roeth Photography; (Bottom): Hero Images/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 616 PART 3 Organizational Processes 15.5 ORGANIZATIONAL INNOVATION We live in a time of technological advancement that is creating transformative changes in the way we live, work, and play. Organizations are feeling both the opportunity and the pinch of this reality. Consider the situation faced by executives at Gap. Sales at the global retailer have slumped, and the company has too many stores. An industry expert further concluded, “Every retailer is competing for a shrinking pool of custom- ers who lately spend more of their money on meals or services, such as manicures and travel. Still, they demand greater value and discounts from their clothing purchases.”63 Despite the company’s promises to innovate, Gap recently announced it would close more than 200 underperforming stores and spin off its Old Navy brand to a separate company.64 Is Gap an anomaly or is the need to innovate widespread? It’s widespread! Results from a recent survey of nearly 700 leaders revealed that although 85 percent of them said innovation is important, more than three-quarters of them focus on incremental changes in their businesses instead. In addition, close to 60 percent of the leaders said innovation is a slow process—taking a year or longer to create new products.65 Innovation “is the creation of something new that makes money; it finds a pathway to the consumer.”66 This definition underscores that innovations must be both novel and useful. We now take a closer look at innovation and the way organiza- tions foster it. You will learn that innovation is more likely to occur when organizations create and support a system of innovation, which includes tailoring the characteristics of the physical environment. Approaches toward Innovation  We can classify innovations by crossing their type with their focus, producing four distinct types (see Figure 15.6). The Type of Innovation Managers often need to improve a product or service they offer in response to competition or customer feedback. This response often amounts to a technological innovation. Or managers may need to improve the process by which a product is made or a service is offered. This need typically leads to a pro- cess improvement. More specifically, a product innovation  is a change in the appearance or functionalilty/performance of a product or a service or the creation of a new one. Apple has made ten generations of iPhones that each added new features or functionality, such as camera features, screen size, and Siri voice control system. Apple CEO Tim Cook revealed that Apple has sold about 1.5 billion iPhones as of the end of 2018.67 PepsiCo’s THE BIGGER PICTURE Managers agree that the ability to innovate affects long-term success, and you will undoubt- edly be asked to help your employer achieve this. This section provides insights into the ways organizations approach the goal of innovation. After discussing approaches toward innova- tion pursued by companies, we review the need to create an innovation system and summa- rize the influence of office design on innovation and performance. Describe the importance of innovation in any organization. LO 15-5 Organizational Behavior: A Practical, Problem-Solving Approach 617Organizational Design, Effectiveness, and Innovation CHAPTER 15 creation of Mountain Dew Kickstart is another example: higher juice content, fewer calo- ries, new flavors. This new drink generated over $200 million in two years.68 A process innovation  is a change in the way a product or a service is con- ceived, manufactured, or distributed. Alcoa’s use of 3-D printing in its manufacturing process of jet engine components is a great example. Fortune contrasted Alcoa’s old and new manufacturing processes: “In the past, Alcoa built a die using a process called subtrac- tive machining. It’s similar to sculpture: Start with a material—in this case, steel—then whittle it down into the shape you need. Ten to 30 weeks later, the company ended up with a custom die that it would then use to cast the needed engine part. Today Alcoa pairs computer-aided design, or CAD, with 3-D printing to construct the die from a computer file, layer by layer. A process that once took half a year could be completed in two to eight weeks, allowing the company to dramatically increase its output.” The new process reduced manufacturing costs by 25 percent.69 The Focus of the Innovation The focus continuum measures the scope of the innova- tion. Improvement innovations enhance or upgrade an existing product, service, or process. These types of innovations are often incremental and are less likely to generate significant amounts of new revenue at one point in time. As is true for products like Apple’s iPhone and PepsiCo’s Mountain Dew, however, improvement innovations can produce significant reve- nue if the results are highly different from past products or services. In contrast, new-direction innova- tions take a totally new or different approach to a product, service, pro- cess, or industry. These innovations focus on creating new markets and customers and rely on developing breakthroughs and inventing things that didn’t already exist. Experimental driverless cars are a new-direction innovation, and most major automo- bile manufacturers are exploring their market potential. Some industry experts, including Christoph Grote, head of BMW’s advanced technolo- gies group, believe this innovation might change the entire industry. “The next 10 years will bring more change than the last 30,” he said.70 FIGURE 15.6 Approaches Toward Innovation Improvement • Ten generations/versions since first introduced in June 2007 Apple iPhone • Alcoa’s use of 3-D printing in its manufacturing process 3-D Printing New Directions • Major automobile manufacturers and Google Driverless Cars Focus of Innovation Ty pe o f I nn ov at io n • Panelized homes Home Construction Product Process Three-D printing, also known as additive manufacturing, is used to create a three-dimensional object by having a computer control the successive layers of material that comprise an object. Some people believe that 3-D printing will create a third industrial revolution. Zoonar GmbH/Cylonphoto/Alamy Stock Photo Organizational Behavior: A Practical, Problem-Solving Approach 618 PART 3 Organizational Processes The housing industry has experi- enced a new-direction innovation that changes the process of constructing homes. The traditional way of building a home is called “stick-built.” Architec- tural plans are given to a general con- tractor, who then hires subcontractors to build the home in phases, starting with pouring the foundation and fram- ing the structure. The process is time consuming, filled with quality issues, and expensive. The new alternative is “panelized homes,” in which all compo- nents of a house are prefabricated at a climate-controlled factory and then shipped to the building site for construc- tion. The weather-tight shell usually can be assembled in a matter of days.71 An industry study compared results of these two constructions processes for a 2,600-square-foot home and found that panelized homes “required 26 percent less lum- ber, wasted 76 percent less materials, and needed just over a third of the man-hours that would be used in a comparable stick-built house.”72 An Innovation System: The Supporting Forces for Innovation Innovation won’t happen as a matter of course. It takes dedicated effort and resources, and the process must be nurtured and supported. Organizations do this best by developing an innovation system. An innovation system  is “a coherent set of interdependent pro- cesses and structures that dictates how the company searches for novel problems and solutions, synthesizes ideas into a business concept and product designs, and selects which projects get funded.”73 Research and practice have identified seven com- ponents of an innovation system: innovation strategy; committed leadership; inno vative culture and climate; required structure and processes; necessary human capital; human resource policies, practices, and procedures; and appropriate resources (see Figure 15.7).74 These must be aligned and integrated for innovation to blossom, hence the dual-headed arrows in Figure 15.7. Create an Innovation Strategy Many companies fail in their improvement efforts because they lack an innovation strategy.75 An innovation strategy, which amounts to a plan for being more innovative, requires a company to integrate its innovation activities into its business strategies. This integration encourages management to invest resources in innovation and generates employee commitment to innovation across the organization. Corning is a diverse company that used its expertise in glassmaking to become a global manufacturer of specialty components needed for electronic displays, life sciences instruments, and telecommunications systems among others. According to a writer for the Harvard Business Review, “The company’s business strategy focuses on selling ‘keystone components’ that significantly improve the performance of customers’ complex system products. Executing this strategy requires Corning to be at the leading edge of glass and materials science so that it can solve exceptionally challenging problems for customers and discover new applications for its technologies. That requires heavy investments in An example of building a panelized home. Note the section of a home being raised so that it can be assembled with additional prefabricated walls. As you can imagine, homes can be built more quickly using this innovative method of construction. Acontadini/E+/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 619Organizational Design, Effectiveness, and Innovation CHAPTER 15 long-term research.”76 The company spearheads these innovation efforts via a centralized R&D laboratory in upstate New York. Commitment from Senior Leaders One of the biggest lessons we have learned from our consulting experience is that the achievement of strategic goals is unlikely with- out real commitment from senior leaders. Microsoft CEO Satya Nadella knows this lesson well. He is currently driving innovation by using empathy. His message to employees when he took over as CEO in 2014: Empathy leads to understanding and collaboration, which helps innovation push its way toward helpful, new products. EXAMPLE A Microsoft engineer who is deaf had difficulty Skyping with her parents in India because the fuzzy video made it difficult for her to read their lips. She always had to ask them to turn off the lights in the background so she could focus better on their faces. She kept wondering, “Why can’t we build technology that can do this for us instead?” So the engineer came up with the idea of a background-blurring feature, which has since been integrated into Skype and Microsoft Teams.77 Foster an Innovative Culture and Climate A recent survey by the Boston Con- sulting Group identified risk-averse culture as the key obstacle to innovation.78 Academic research also supports the conclusion that an innovative culture and climate are associated with the creation of new ideas and products.79 These findings reflect the fact that innova- tion requires experimentation, failure, and risk taking, and these are all aspects of an orga- nization’s culture. Many senior leaders understand this link. Nike co-founder Philip Knight says he learned early on in business to expect setbacks and failure as part of trying to innovate. “The only time you must not fail is the last time FIGURE 15.7 Components of an Innovation System Innovation Systems Necessary Human Capital Required Structure and Processes Human Resource Policies, Practices and Procedures Committed Leadership Innovation Innovation Strategy Innovative Culture and Climate Appropriate Resources Organizational Behavior: A Practical, Problem-Solving Approach 620 PART 3 Organizational Processes you try,” he says. The founder of Honda Motor, Soichiro Honda, explained the link between innovation, success, and failure as follows: “Success represents the 1 percent of your work which results from the 99 percent that is called failure.”80 Managers can create an innovative culture and climate by using the 12 mechanisms for creating culture change discussed in Chapter 14. These concerted efforts should facili- tate the creation of values, norms, and rewards that support risk taking, adaptability, agil- ity, and psychological safety to speak up and provide criticism.81 Can AMD Innovate without Risk? AMD is a global maker of high-performance com- puting and graphic technology for gaming, tech platforms, and data management systems used by hundreds of millions of end-user consumers. Based in California and Texas and currently under the lead- ership of president and CEO Lisa Su, the company is celebrating 50 years in the computing industry. Sec- ond only to Intel, AMD has been described as a company that  “always springs back with a ven- geance, thanks in part to its commitment to innova- tion, willingness to try something different technologically, and maybe with a chip on its shoul- der wanting to prove it has what it takes.”82 AMD has weathered many years of industry ups and downs. Along the way it contributed to some significant technology milestones, like the increas- ing capacity and declining costs of computer pro- cessors. Now, however, the company is posting lower revenues (down almost 23 percent in the first quarter of 2019), mirroring lower revenues in the computing and graphics industry generally.83 The company has also been losing executive talent to Intel and other tech companies. Its senior vice president of global computing and graphics sales, its graphics chip architect, and its senior director of product marketing are all recent depar- tures. Promotions from within have so far filled the gaps.84 AMD’s stated goal is “to provide increasing compute and graphics power to more and more people globally, enabling the next generation of global problem solvers.” However, the company is “more focused on execution than taking huge risks,” according to an analyst.85 Problem-Solving Application The computer chip developed by AMD Anatolii Mazhora/Shutterstock Apply the 3-Step Problem-Solving Approach Step 1: Define the problem AMD faces as it celebrates 50 years in business. Step 2: Identify the causes of the problem. What OB theories or concepts help explain them? Step 3: Recommend what AMD’s leaders should to do ensure its continued success. Have you worked for a company that has an innovative climate? Are you wondering what it takes to create such a climate? If yes, take the innovation climate Self-Assessment 15.3. Organizational Behavior: A Practical, Problem-Solving Approach 621Organizational Design, Effectiveness, and Innovation CHAPTER 15 Required Structure and Processes Organizational structure and internal pro- cesses can promote innovation if they foster collaboration, cross-functional communica- tion, and agility. Our earlier discussion of organizational design suggests that organic structures are better suited for innovation than mechanistic ones. For example, Juniper Networks, a leader in computer network integration, concluded that its “formal organiza- tional structure was not conducive to the types of rich interactions and conversations required for innovation to thrive.” Vince Molinaro, executive vice president of worldwide sales, commented, “We were not integrating diverse expertise and experience across engi- neering, infrastructure, and sales teams the way we could when we were a small company.” Juniper changed its structure.86 In Chapter 1, we defined organizational processes as an organization’s capabilities in management, internal processes, and technology that turn inputs into outcomes. Processes play a critical role in innovation. The design and consulting firm IDEO, for example, employs a unique process when it helps companies to innovate (see the OB in Action box). Crowdsourcing,  defined as “the practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people” typically via the Internet, is being used by more companies to help innovate. For example, Procter & Gamble’s crowdsourcing platform, Connect + Develop, has enabled the company to establish more than 2,000 successful agreements with innovation partners around the world. LEGO Ideas crowdsourcing platform has been a hit with adult LEGO fans for more than a decade, with 26,000 ideas submitted for new LEGO products and 23 new products launched.87 More research is being done on the effectiveness of crowdsourcing and sug- gests that it is positively associated with firm performance.88 How Innovative Is the Organizational Climate? Please be prepared to answer these questions if your instructor has assigned Self- Assessment 15.3 in Connect. 1. What is the level of innovation? Are you surprised by the results? Explain. 2. Select the three lowest survey item scores. Use the content of these items to recommend what the company could do to become more innovative. SELF-ASSESSMENT 15.3 IDEO (pronounced “EYE-dee-oh”) is a unique, award- winning, and highly respected and influential global design firm. It is responsible for such innovative prod- ucts as the first mouse for Apple, heart defibrillators that walk a user through the steps, and TiVo’s “thumbs up–thumbs down” button. An intense focus on end-user behavior is the foundation of all the com- pany does and is embedded in the three steps of its design thinking. The steps are inspiration, ideation, and implementation. • Inspiration. As defined by David Kelley, IDEO’s legendary founder, inspiration is the problem or opportunity that motivates the search for solutions. • Ideation. Ideation is the process of generating, developing, and testing ideas. • Implementation. The final step, imple mentation, links the problem’s solution to people’s lives. Design Thinking Your Way to Innovative Solutions OB in Action Organizational Behavior: A Practical, Problem-Solving Approach 622 PART 3 Organizational Processes Finally, a team of experts suggested that organizations can foster innovation by focus- ing on four agility techniques.94 1. Place more emphasis on people than on processes and tools. Innovation initiatives or projects should be built around motivated individuals who are empowered to get the job done and have the resources to do it. 2. Be responsive to change rather than following a detailed plan. It helps to create project plans, but don’t spend large amounts of time trying to identify each and every task to be completed. Tasks frequently change as situations evolve. Teams thus need the free- dom to diverge from project plans if the situation or customer requires it. Alaska Air- lines is following this recommendation. As the airline grew and revenues rose, it became more bureaucratic, with employees following a heavily scripted operations playbook. This rigid approach tied employees’ hands when it came to pivoting to address customer service issues. Recognizing the problem, Alaska Airlines returned to its culture of giving employees autonomy and encouraging them to make decisions independently.95 3. Develop and test prototypes rather than focusing on documentation. People learn more and are happier when they observe their ideas being applied in real market conditions. Teams should experiment with products and services on a small scale to see whether customers like them. If they do, keep the new ideas; otherwise, it’s back to the drawing board. For example, PepsiCo originally designed SunChips to be one-inch square and to break into pieces when eaten. When the company pilot-tested the product in focus groups, people said they preferred products that were smaller than one inch. PepsiCo concluded the chips were too big and changed its molds and production processes.96 4. Collaborate with customers rather than adhering to rigid contracts. Customers often don’t know what they want. Adhering to fixed contracts and deliverables rather than Observing user behavior and working with proto- types are important aspects of each step. They help IDEO’s diverse problem-solving teams both define client problems and gauge the effectiveness of their solutions. Thinking Like a Designer The company’s consulting approach to products, services, processes, and strat- egy brings together what is desirable from a human point of view with what is technologically feasible and economically viable. It also allows people who are trained as designers to use creative tools to address a vast range of challenges. The goal: to tap into abilities we all have that are overlooked by more conventional problem-solving practices. Thinking like a designer relies on one’s ability “to be intuitive, to recognize pat- terns, to construct ideas that are emotionally meaning- ful as well as functional, and to express ourselves through means beyond words or symbols.”89 Beyond Product Design IDEO’s design thinking has been so successful that many nonbusiness and nonproduct organizations are now engaging the company. For instance, it is working with the City of Los Angeles to design a revolutionary voting system for its 5 million registered voters. The system must be “useful and accessible to all types of voters: those who are vision and hearing impaired, in wheelchairs, have learning disabilities, are unfamiliar with technol- ogy, speak languages other than English—voters of all ages and backgrounds.”90  IDEO’s Ann Kim also sees an opening to help with very human problems like sleeplessness and loneliness. “Science has sur- faced the myriad of ways we can cultivate emotional and mental well-being—all of which are new chan- nels for design,” she says. “You don’t have to have a doctor or nurse to help people. Designers are healers, too.”91 As an Organization IDEO has more than 700 employees in 9 offices, both in major U.S. cities and overseas in London, Munich, Shanghai, Singapore, and Tokyo.92 The firm has an organic design, the result of merging four design companies. Its current structure builds on project teams and a flat hierarchy, in support of individual autonomy and creativity.93 YOUR THOUGHTS? 1. What is appealing to you about IDEO? 2. To what extent does IDEO’s approach to design force companies to use the seven components of an innovation system (see Figure 15.7)? Explain. Organizational Behavior: A Practical, Problem-Solving Approach 623Organizational Design, Effectiveness, and Innovation CHAPTER 15 adjusting to customer preferences can reduce innovation when employees get too focused on budgets and specifications. Constant collaboration with customers will keep work focused on what they ultimately value.97 Develop the Necessary Human Capital We defined human capital in Chapter 14 as the productive potential of an individual’s knowledge and actions: a person factor in the Organizing Framework. Research has identified several employee characteristics that can help organizations innovate. For example, innovation has been positively associated with the individual characteristics associated with creativity, creative-thinking skills, intrinsic motivation, the quality of the relationship between managers and employees, and interna- tional work experience.98 EXAMPLE Cornerstone OnDemand, an HR software company, recognizes people get stuck in routines and put creativity aside. To get people away from their everyday routines, the company hosts an annual “hackathon” that takes place over a 24-hour period. People from all departments work alone or in teams to develop and pitch ideas they think will help move the company forward. According to Cornerstone’s chief technology officer, there is only one rule: “You cannot work on activities related to your day job; only new thinking and new ideas are allowed.”99 Human Resource Policies, Practices, and Procedures Human resource poli- cies, practices, and procedures need to be consistent with and reinforce the other six com- ponents of an innovation system. Companies that know this are more likely to be innovative and to have higher financial performance.100 For example, the practice of bringing people from different disciplines together to both brainstorm and train is a good way to foster the collaboration needed for innovation. The University of Michigan’s Biointerfaces Institute “locates materials scientists, chemical engineers, biomechanical engineers, and medical researchers near each other. The resulting collaborations led to the creation of a blood test that both captures and cultures cancer cells for speedier cancer diagnoses,” according to a writer for Training.101 A company’s performance management and incentive system are often at odds with an innovation culture and climate. For example, GE changed its well-known annual perfor- mance review process to make it more consistent with driving innovation and attracting younger employees. In the past, the company ranked all employees and then eliminated the bottom 10 percent. This process has been replaced with a more nurturing approach includ- ing an app, PD@GE, to help employees, managers, and teammates share feedback for continuous improvement.102 Companies also need to align their reward and recognition systems with innovation-related goals. Research shows that receipt of extrinsic rewards is associated with both creativity and innovation.103 Appropriate Resources Organizations need to put their money where their mouths are. If managers want innovation, they must dedicate resources to its development. Resources can include people, dollars, time, energy, knowledge, and focus. Heineken, for example, spent $2 million on training employees in beer basics to help them innovate.104 Office Design Office designs have gone through radical changes in the past 15 years. In an effort to reduce costs, to promote cooperative behavior and camaraderie, to increase productiv- ity, and to create more transparency in what we do, many companies have adopted open-office design. Unlike traditional designs in which people have their own offices, open-plan designs offer shared work space that accommodates anywhere from two to several hundred people. The Washington Post reported that 70 percent of today’s orga- nizations use some amount of open office space. All told, our personal space at work is predicted to decrease from 2010 levels of 225 square feet to under 100 square feet in the near future.105 Organizational Behavior: A Practical, Problem-Solving Approach 624 PART 3 Organizational Processes For us, the question is whether the move to open-office designs is leading to positive individual, group, and organizational outcomes. What is your opinion? Here are some findings from OB research: • Privacy, defined as the ability to control incoming stimulation and interpersonal contact and to limit outgoing information, is reduced in an open-plan office.106 • Few office cubicle dividers are tall enough to block the noise and distractions that limit people’s ability to focus at work. The resulting overstimulation is stressful for many people.107 • Spatially dense work environments (in which employees are crowded) have been found to promote cooperative behavior and productivity, but they can also be detri- mental to individual, group, and organizational performance.108 • Attitudes about personal space are culturally bound around the world. “Germans allocate an average of 320 square feet per employee; Americans an average of 190. For workers in India and China, the figures are 70 and 50 square feet respectively,” according to a writer in the Harvard Business Review. Both Indian and Chinese workers rated their work environments highly in terms of their ability to concentrate and work without disruption, but this is not true in the United States.109 The above results demonstrate both positive and negative effects of open-office designs. So what is management to do? For one, recognize that people have preferences. For example, some people enjoy the social interaction of the workplace, while others find the work environment too distracting to be productive and would rather work in a quiet environment. Second, remember that open offices are not inherently good or bad when it comes to innovation, collaboration, or performance. All told, we agree with these conclu- sions by a team of office design professionals. The key to successful work spaces is to empower individuals by giving them choices that allow control over their work environment. When they can choose where and how they work, they have more capacity to draw energy and ideas from others and be re-energized by moments of solitude. Providing the ability to move easily between group time and individual private time, create a rhythm—coming together to think about a problem and then going away to let ideas gestate—that is essential to the modern organization.110 This photo is quite typical for an open office environment. What are the pros and cons to working in this area? Would you prefer this office design or a traditional office with a door? Cathy Yeulet/123RF Organizational Behavior: A Practical, Problem-Solving Approach 625Organizational Design, Effectiveness, and Innovation CHAPTER 15 THE BIGGER PICTURE Organizations that measure and monitor their progress in achieving goals outperform those that do not. The type of goals companies seek to achieve essentially define their mission and vision. The purpose of this section is to discuss the effectiveness criteria organizations use. 15.6 ASSESSING ORGANIZATIONAL EFFECTIVENESS Do you think top managers would like to have easy-to-read graphics that contain the latest information about sales, quality problems, employee turnover, and the like, aggregated from data pulled in real time from corporate software? The technology to track all these metrics exists and is called a dashboard, like the instrument panel in a car. Bob Parsons, founder of GoDaddy, believed in dashboards. “Measure everything of significance. Anything that is measured and watched improves,” he said.111 Larry Bossidy, former CEO of both Honeywell International and AlliedSignal, similarly noted, “When I see companies that don’t execute, the chances are that they don’t measure, don’t reward, and don’t promote people who know how to get things done.”112 In several chapters we emphasized the value of evidence-based management—the use of real-world data rather than assumptions or hunches in making managerial decisions. The dashboard is a tool that can help you manage this way. Two professors from Harvard, Robert Kaplan and David Norton, have applied the dashboard idea in their balanced score- card and strategy maps. These tools help companies establish their strategies and goals and provide a vehicle for assessing organizational effectiveness. Hundreds of companies around the globe have used them.113 The Balanced Scorecard: A Dashboard-Based Approach to Measuring Organizational Effectiveness  Kaplan and Norton note, “The balanced scorecard (BSC) translates an organization’s vision and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system.” It “retains an emphasis on achieving financial objectives, but also includes the performance drivers of these finan- cial objectives.”114 The BSC provides managers with a comprehensive view of the organiza- tion in terms of four perspectives: (1) financial, (2) customer, (3) internal business processes, and (4) learning and growth, which looks at employee welfare and development. “Think of the balanced scorecard as the dials and indicators in an airplane cockpit,” say Kaplan and Norton. For a pilot, “reliance on one instrument can be fatal. Similarly, the complexity of managing an organization today requires that managers be able to view per- formance in several areas simultaneously.”115 Four Perspectives Underlying the Balanced Scorecard The process of creating a balanced scorecard requires managers to establish goals and measures for all four per- spectives. Let’s look at each one. 1. Financial Perspective: How Do We Look to Shareholders? Corporate financial strategies and goals generally fall into two buckets: revenue growth and productivity growth. Revenue growth goals might focus on increasing revenue from both new and existing customers. Equipment manufacturer John Deere, for instance, is pursuing new revenue by developing software services and machine learning algorithms that provide information Explain how to assess an organization’s effectiveness. LO 15-6 Organizational Behavior: A Practical, Problem-Solving Approach 626 PART 3 Organizational Processes and guidance to farmers in the field. It is doing this to offset a recent decrease in revenue.116 Productivity metrics such as rev- enue per employee or total output produced divided by number of employees are common organization-level goals. We can also measure productivity in terms of costs. For example, Gap recently announced plans to close more than 200 underperform- ing retail stores to decrease costs and improve profitability.117 2. Customer Perspective: How Do Customers See Us? Many compa- nies view customers as one of their most important constituents. The balanced scorecard translates this belief into measures such as market share, customer acquisition, customer retention, cus- tomer satisfaction/loyalty, product/service quality, response time—the time between order and delivery—and percentage of bids won. Part of Amazon’s success, for example, is its response time and pricing. The general idea behind the customer perspec- tive is that companies will acquire and retain more customers, thereby growing market share, when they provide high-quality products and services people want, and in a timely manner.118 Management at the the Four Seasons resort chain places high emphasis on customer satisfaction and loyalty. To achieve the goal of providing the quietest rooms in the industry, a For- tune reporter noted the company built facilities such that “no plumbing touches concrete. To encourage personalized service [the CEO], gave everyone from parking attendants on up the authority to act instantly when a guest makes a request.”119 3. Internal Business Process Perspective: What Must We Excel At? The internal business perspective focuses on “what the organization must excel at” to effectively meet its financial objectives and customers’ expectations. A team of researchers has identified four critical high-level internal processes that managers are encouraged to measure and manage: • Innovation. • Customer service and satisfaction. • Operational excellence, which includes safety and quality. • Good corporate citizenship.120 These processes influence productivity, efficiency, quality, safety, and a host of other internal metrics. Companies tend to adopt continuous improvement programs in pursuit of upgrades to their internal processes. Consider how Graycor Industrial Constructors (Graycor) attempts to meet its goal of safety and quality. EXAMPLE Chicago–based Graycor Industrial Constructors sets a safety standard of zero incidents led by its tenet: “Nothing is more important than safety. Not produc- tion, not sales, not profits.” As part of the general contractor’s safety and health pro- gram, all company leaders and project team supervisors—from general foremen to company president—must complete job site-specific safety training, which includes the Occupational Safety and Health Administration’s (OSHA) 30-hour course, inci- dent investigation, task safety planning, and hazard recognition. One way the North American builder encourages its employees to participate in the safety process is through a “good catch” program, set up to motivate field workers and managers to share lessons learned to prevent an incident from occurring. Graycor, founded in 1921, was named one of America’s safest companies in 2018 by EHS Today.121 Cotopaxi, an outdoor apparel company, makes corporate citizenship its top crite- rion for evaluating organizational effectiveness. As part of its mission the company funds global poverty alleviation, moves people to do good, and inspires adventure These pilots monitor the dials and gauges in the cockpit to safely navigate a plane. A balanced scorecard is akin to the dials and gauges in a cockpit. They inform managers as to the status of achieving their goals. Vladimir Maravic/Vetta/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 627Organizational Design, Effectiveness, and Innovation CHAPTER 15 through innovative outdoor products and experiences.122 According to Bloomberg Businessweek, “Cotopaxi is one of about 1,700 businesses worldwide that have regis- tered as a benefit corporation, or B Corp, a legal category for corporations that hew to the concept of a double bottom line, in which financial goals don’t take precedence over social ones.”123 The company gives 1 percent of its profits to organizations focused on poverty alleviation around the world.124 4. Learning and Growth Perspective: Can We Continue to and Create Value? The learning and growth perspective focuses on providing employees with the capabi lities, resources, and work environment they need to achieve customer, internal business processes, and financial goals. It’s the foundation of all other goals in a scorecard. Typical metrics in this perspective are employee satisfaction/engagement, employee retention, employee produc- tivity, training budget per employee, technology utilization, and organizational climate and culture. Many are tracked with employee surveys to gauge attitudes and opinions. Based on theories and research discussed throughout this book, you might expect your job satisfaction, engagement, and performance to be higher if you work for a company that truly cares about the innovation and learning perspective. Are you curious about whether a current or former employer is committed to this perspective? You can find out by completing Self-Assessment 15.4. In an industrial project’s “topping out,” Graycor Industrial Constructors safely hoisted and placed a roof weighing approximately 170 tons as a major milestone during an environmental retrofit project the general contractor completed at a coal-fired power plant in the United States. Courtesy of Graycor Industrial Constructors Inc. Assessing the Learning and Growth Perspective of the Balanced Scorecard  Please be prepared to answer these questions if your instructor has assigned Self-Assessment 15.4 in Connect. 1. Where does the company stand in terms of commitment to innovation and learning? Are you surprised by the results?  2. Use the three highest and three lowest scores to identify the strengths and weaknesses of this company’s commitment to innovation and learning.  3. Based on your answer to question 2, suggest three ways management can improve its commitment to innovation and learning. SELF-ASSESSMENT 15.4 Strategy Mapping: Visual Representation of the Path to Organizational Effectiveness  Have you ever worked for a company that failed to effectively communicate its vision and strategic plan? If yes, then you know how it feels to be disengaged because you don’t know how your work contributes to organizational effectiveness. Kaplan and Norton recognized this common problem and developed a tool called the strategy map. A strategy map  is a “visual representation of a company’s critical objectives and the crucial relationships among them that drive organizational performance.” Maps show relationships among a company’s strategic goals. This helps employees understand how their work contributes to their employer’s overall success. We created an illustrative strategy map for Dr Pepper Snapple Group in Figure 15.8. Starting with learning and growth, the arrows in the diagram show the logic that connects Organizational Behavior: A Practical, Problem-Solving Approach 628 PART 3 Organizational Processes goals to internal processes, to customers, to financial goals, and finally to the long-term goal of providing shareholder value. For example, you can see that organizational culture affects the internal process goals related to innovation, operational improvements, and good corporate citizenship. This causal structure provides a strategic road map of how the company plans to achieve organizational effectiveness. You can also detect which of the four perspectives is most important to Dr Pepper Snapple by counting the number of goals in each perspective. For this strategy map, there are four, five, eight, and four goals for the financial, customer, internal processes, and learning and growth perspectives, respectively. You can also see that internal process goals affect eight other goals—count the number of arrows coming from internal process goals. All told, the beauty of a strategy map is that it enables leaders to present a strategic road map to employees on one page. It also provides a clear statement about the criteria used to assess organizational effectiveness. The strategy map for Dr Pepper Snapple Group may be changing in the near future because the company was recently purchased by Keurig Green Mountain, a merger that will create a new beverage giant with $11 billion in sales and combines the Dr Pepper, 7UP, and Keurig’s single-serve coffee brands.125 Innovation • Expand low and zero-calorie drinks • Make sodas part of Keurig’s cold-drink machine Operational Excellence • Reduce packaging expense • Competitive pricing o�ers Revenue Growth • % increase in sales • Increase in number of company- owned vending machines Productivity Growth • Increase inventory turnover • Reduce expenses • Reduce turnover • Amount of employee training Organizational Culture Employee Capabilities and Attitudes • Support employees by keeping jobs in the U.S. • Employee awareness of vision and purpose Long-Term Shareholder Value Customer Intimacy • Improve relationships with distributors • Increase customer awareness Product Leadership • Roll out soda with natural sweetener Customer Value • Reduce calories in drinks Operational Improvements • Continuous improvement • Shorter cycle time • Decrease safety accidents Good Corporate Citizenship • Promote calorie awareness • Increase container recycling rate Internal Process Goals Customer Goals Financial Goals Learning and Growth Goals FIGURE 15.8 Sample Strategy Map for Dr Pepper Snapple Group SOURCES: The Shelby Report. “Dr Pepper Snapple Group To Boost Container Recycling, And More…” Accessed June 14, 2019. https://www.theshelbyreport. com/2016/02/12/dr-pepper-snapple-group-to-boost-container-recycling-and-more/.; Choi, Candice. “Dr Pepper to Test Naturally Sweetened Sodas.” Advantage Business Marketing, February 13, 2014. https://www.manufacturing.net/news/2014/02/dr-pepper-test-naturally-sweetened-sodas.; Gasparro, Annie, and Mike Esterl. “Keurig Reels In Dr Pepper for Its Coming Soda Machine.” The Wall Street Journal, January 7, 2015. https://www.wsj.com/articles/keurig-reels-in-dr-pepper- for-its-coming-soda-machine-1420590475.; Frizell, Sam. Coke and Pepsi Pledge to Cut Calories. TIME USA, LLC., September 23, 2014. https://time.com/3422724/ coca-cola-pepsi-dr-pepper-snapple-soda-calories/.; Esterl, Mike. “How Dr Pepper Cuts Costs. And Keeps Cutting.” The Wall Street Journal, February 21, 2016. https://www.wsj.com/articles/how-dr-pepper-cuts-costs-and-keeps-cutting-1456110339.; and Keurig Dr Pepper, Inc. “Vision—Call to Breakthrough ACTION.” Organizational Behavior: A Practical, Problem-Solving Approach 629Organizational Design, Effectiveness, and Innovation CHAPTER 15 15.7 MAKING THE CONNECTION: HOW CAN UNDERSTANDING ORGANIZATIONAL DESIGN, EFFECTIVENESS, AND INNOVATION HELP ME SUCCEED? Takeaways for Me Here are six things you can do to turn this chapter’s lessons into positive change in your personal and professional life. 1. Take the time to learn from failure in both your personal and work life: It helps to adopt a learning or mastery goal orientation. 2. Structure affects your behavior and performance: If you feel your employer’s organiza- tional structure is constraining your effectiveness, try to find a solution for overcom- ing the barrier. 3. Person–organization fit matters when it comes to organizational design: This means you need to understand the pros and cons of the seven organizational designs so you can assess whether a particular work environment is going to fit. 4. Build your human and social capital so you can help your organization innovate. 5. If your office environment does not suit your work style, talk to your boss about changes that would make things better. 6. Try to establish goals at work that take the four perspectives in the balanced scorecard: This will be more effective if your goals flow from those of your boss. Takeaways for Managers There are seven key implications for managers. 1. Do what you can to help your organization learn: Be seen as someone who promotes learning rather than someone who hides from failure and constructive feedback. 2. Formalize the process of learning from failure within your work unit. 3. Familiarize yourself with the pros and cons of the seven core organizational designs: This will enable you to participate in related discussions at work. 4. Assess the extent to which your organization’s current structure is based on the alignment of the six key internal organizational-level characteristics: If they are not aligned, present a proposal to someone higher in the managerial chain about improving this alignment. 5. Foster innovation by focusing on how you can enhance an innovation system: Improve those factors under your control. 6. Talk to your team about the office design: Find out how everyone feels about it and ask for recommendations about how it might be improved. 7. Use the balanced scorecard as a framework for setting goals for your work unit: Apply strategy mapping as a mechanism to show how your goals flow upward from the learning and growth perspective to the financial perspective. Regardless of their size, organizations possess common characteristics such as structure and innovation, which impact their overall effectiveness. Here are some key points to consider. Describe the implications of organizational design, effectiveness, and innovation for you and managers. LO 15-7 Organizational Behavior: A Practical, Problem-Solving Approach 630 PART 3 Organizational Processes You learned that your knowledge of organizational design, effectiveness, and innovation gives you the ability to help both you and an organization to achieve desired goals. Reinforce your learning with the Key Points below. Then consolidate your learn- ing with the Organizing Framework. Finally, chal- lenge your mastery of the material by answering the Major Questions in your own words. Key Points for Understanding Chapter 15 You learned the following key points. 15.1 UNDERSTANDING ORGANI- ZATIONAL BEHAVIOR • All organizations have three things in com- mon: a form or structure, a desire to be effec- tive, and the need to innovate. • An organization’s structure acts like a finger- print, helping us understand who reports to whom and how information flows across orga- nizational levels. • An organization’s effectiveness amounts to making money (for-profit firms) or helping those in need (nonprofit organizations) and satisfying employees, customers, and share- holders. • All organizations need to innovate to remain in business. Innovation is a key driver of long- term organizational performance. 15.2 THE FOUNDATION OF AN ORGANIZATION • Coordination of effort, aligned goals, division of labor, and hierarchy of authority are four common denominators of all organizations. • There is no consensus about the optimal span of control. In setting the span of control, man- agers should consider the organization’s size, the skill level needed to complete tasks, the organization’s culture, and managerial responsibilities. • Closed systems, such as a battery-powered clock, are relatively self-sufficient. Open sys- tems, such as the growing and selling of organic food, are highly dependent on the environment for survival. Organizations are open systems. • A learning organization proactively creates, acquires, and transfers knowledge and changes its behavior on the basis of new knowledge and insights. • Figure 15.5 illustrates the five-step process underlying organizational learning. 15.3 ORGANIZATIONAL DESIGN • There are three broad types of organizational design: traditional, horizontal, and open. Each has a different focus and is associated with specific types of structure. • Organizations are structured in seven basic ways. Traditional designs include (1) func- tional structures, in which work is divided according to function; (2) divisional structures, in which work is divided according to prod- uct or customer type or location; and (3) matrix structures, with dual-reporting lines based on product and function. Organizations also may be designed (4) horizontally, with cross-functional teams responsible for entire processes. Organization design can reduce barriers between organizations, by means of (5) hollow organizations, which outsource functions; (6) modular organizations, which outsource the production of a product’s com- ponents; and (7) virtual organizations, which temporarily combine the efforts of members of different companies to complete a project. • Table 15.2 summarizes the pros and cons of each of the seven types of organizational design. What Did I Learn? Organizational Behavior: A Practical, Problem-Solving Approach 631Organizational Design, Effectiveness, and Innovation CHAPTER 15 15.6 ASSESSING ORGANIZATIONAL EFFECTIVENESS • The balanced scorecard is a dashboard approach to measuring organizational effec- tiveness. It is based on the use of four key perspectives to measure organizational effectiveness. • The four perspectives underlying the bal- anced scorecard are financial, customer, internal business process, and learning and growth. • A strategy map is a visual representation of a company’s strategic goals and the relation- ships among them. 15.7 HOW CAN UNDERSTANDING ORGANIZATIONAL DESIGN, EFFECTIVENESS, AND INNO- VATION HELP ME SUCCEED? • Learning from failure in your personal and work life can help you adopt a learning orien- tation. • Familiarizing yourself with the pros and cons of the seven core organizational designs will give you confidence to participate in related discussions at work. • Using the balanced scorecard framework to set goals for your work unit will provide a comprehensive look at what the organization is trying to accomplish. The Organizing Framework for Chapter 15 As shown in Figure 15.9, more situation than per- son factors serve as inputs to a host of processes across all three organizational levels. These pro- cesses in turn affect outcomes across the individ- ual, group, and organizational levels. 15.4 CONTINGENCY DESIGN AND INTERNAL ALIGNMENT  • There is no one best form of structure for an organization. Organizations are more effec- tive when they are structured to fit the demands of the situation.  • Managers should consider five key contin- gency factors when making decisions about organizational design: strategy and goals, market uncertainty, decision-making pro- cesses, technology, and size.  • Six organizational characteristics—strategy; structure; organizational culture; internal pro- cesses; human resource practices, policies, and procedures; and employees’ human and social capital—need to be aligned and mutu- ally reinforcing when selecting an effective organizational design. • There are both short- and long-term benefits to knowing about organizational design. 15.5 ORGANIZATIONAL INNOVATION • Innovation is the creation of something new and useful that gets commercialized.  • Crossing the types of innovation with the focus of the innovation results in four approaches toward innovation. • Innovations can produce new products or new processes and can vary in focus from improvement to new directions. • An innovation system’s seven components are an innovation strategy, commitment from senior leaders, an innovative culture and cli- mate, required structure and processes, nec- essary human capital, appropriate resources, and human resource policies, practices, and procedures.  • Office design affects innovation and employee performance. Organizational Behavior: A Practical, Problem-Solving Approach 632 PART 3 Organizational Processes 2. What are the seven basic ways in which organi- zations are structured, and how do these struc- tures relate to the organization’s purpose? 3. How can I use knowledge about contingent organization design and internal alignment to improve my satisfaction and performance? 4. How can I support my employer’s attempts to innovate? 5. What does its choice of ways to measure its effectiveness tell me about an organization? Challenge: Major Questions for Chapter 15 You now should be able to answer the following questions. Unless you can, have you really pro- cessed and internalized the lessons in the chap- ter? Refer to the Key Points, Figure 15.9, the chapter itself, and your notes to revisit and answer the following major questions: 1. How can knowledge about an organization’s foundation help me in my career? FIGURE 15.9 Organizing Framework for Understanding and Applying OB INPUTS PROCESSES OUTCOMES Person Factors • Attitudes about freelancing • Goal orientation • P-O fit Situation Factors • Organizational structure • Organizational culture • Organizational climate • Organizational vision and values • Contingency factors • Physical environment Individual Level • Decision making Group/Team Level • Postmortems of failure • Decision making • Communication Organizational Level • Organizational learning • Human resource policies, practices and procedures • Communication • Balanced scorecard • Strategy maps • Innovation system Individual Level • Job satisfaction • Performance • Creativity Group/Team Level • Group/team performance • Innovation Organizational Level • Accounting/financial performance • Innovation © 2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. Organizational Behavior: A Practical, Problem-Solving Approach 633Organizational Design, Effectiveness, and Innovation CHAPTER 15 Barnes & Noble is the largest bookstore chain in the United States having sold more than 6.7 billion books since going public in 1993. Leonard Riggio, the book- seller’s chairman, started with a single Manhattan loca- tion and now operates 627 stores in all 50 states. The New York–based company has approximately 26,000 employees.126 Barnes & Noble has fallen on hard times. The book- seller has experienced declining revenues, resulting in increased debt from $84 million in 2017 to $178 million in 2018.127 The company also was forced to lay off its entire full-time staff of 1,800 employees in February 2018 to alleviate some of the mounting financial pressure.128 These financial pressures have taken a toll on the bookseller’s stock, which plunged more than 60 percent between 2015 and 2018.129 Let’s explore the causes of Barnes & Noble’s downfall. THE RETAIL BOOKSTORE INDUSTRY HAS EVOLVED Barnes & Noble was once vilified as a behemoth that drove local bookstores out of business. The booksell- ing giant grew at the turn of the century with the num- ber of independent bookstores falling 43 percent from 1995 to 2009, according to the American Booksellers Association.130 This growth was fueled by the increased development of malls and shopping centers. The company’s fortunes changed with two critical, yet conflicting, events. First, the success of online retailers, such as Amazon, has led to the decline of storefront traffic, which Barnes & Noble relies on as a primary revenue source. Second, independent book- stores are making a comeback, aided by increased customer interest in localization and a curated expe- rience. In fact, the number of independent store loca- tions has increased 67 percent between 2009 and 2018.131 STAGNATION AND CONFUSION AT BARNES AND NOBLE So why is Barnes & Noble failing in an industry that is growing in the face of Amazon? Its flagship Union Square location in New York City provides a clue. “The CD and DVD sections, which still occupy a sizable chunk of store space, are often deserted and unmanned,” according to Andria Cheng, a Forbes con- tributor. Customers don’t seem to have a reason to come into a Barnes and Noble like they would a niche independent bookstore. The national bookseller doesn’t have a unique experience to offer; on the con- trary, it seems to offer too much of everything. “Else- where in the store, alongside bestsellers, signed copies and books . . . are more examples of mismatched merchandise: journals, toys, candles and diffuser sets, tea and chocolate selections,” says Cheng.132 Business Insider compared New York’s Barnes & Noble with Amazon stores and found Barnes & Noble to be “like a dollar store” and that “the grab-bag inven- tory strategy makes the store seem confused and des- perate.” The Amazon store, on the other hand, resembled “the future of chain retail.”133 In the end, Barnes & Noble doesn’t seem to know what it stands for, and what it wants to be, according to Forbes.134 WHO’S ATOP THE HIERARCHY? It’s difficult to come up with an effective strategy when you don’t have a leader. Chairman Leonard Riggio stepped down as CEO of Barnes & Noble in 2002. The company had stable leadership for another decade, first led by Stephen Riggio (Leonard’s younger brother) and then by William Lynch. Lynch is credited with launching the company’s electronic bookstore and introducing its electronic book reader, the Nook.135 Lynch stepped down in 2013, launching a turbulent time for company leadership with five chief executives leaving between 2013 and 2018.136 Some of the turnover atop the organization can be attributed to Chairman Riggio. Riggio is notorious for micromanaging his CEOs. An analyst at Gabelli & Com- pany told The New York Times that, “Anyone who joins there knows that the chairman is very hands on.”137 For example, Riggio fired former-CEO Ronald Boire less than one year into Boire’s tenure. The chairman simply stated that Boire “was not a good fit for the organization” and declined to provide additional com- mentary after letting him go in 2016.138 Riggio then hired Demos Parneros as chief executive. Parneros was fired for misconduct a year later and is now suing Barnes & Noble for wrongful termination.139 The organization’s skyrocketing CEO turnover rate has caught the attention of external stakeholders. For example, book-publishing executives expressed con- cerns to Riggio about continuing management instabil- ity at the retail giant and the direction of the business, according to The Wall Street Journal. Publishers argue PROBLEM-SOLVING APPLICATION CASE  Barnes & Noble Faces Its Last Chapter Organizational Behavior: A Practical, Problem-Solving Approach 634 PART 3 Organizational Processes that Barnes & Noble needs to have a strategy to drive performance. This is especially important when Amazon is competing with it digitally and in stores, and small bookstores are nipping at its heels. “I expressed frustration that if they had a plan, we didn’t know it,” a publishing executive who met with Riggio told the Journal.140 Riggio disputes claims that Barnes & Noble is mired in a leadership crisis. “I have a big stake in the busi- ness, I founded it and I’ve been here forever, so I think there’s a lot of stability that comes with that . . . If we’re without a leader, I’m it,” Riggio told The New York Times.141 The chairman and interim CEO firmly believes he is the innovative leader the company cur- rently needs. “We have a lot of work that needs to get done, and I think I bring the necessary leadership,” he told Publishers Weekly. Riggio’s strategy is for Barnes & Noble to become an innovative storefront bookstore. The new store in Columbia, Maryland, is a prime example. It features a contemporary design, USB and electricity ports in the café, and “book theaters,” which offer a 360-degree in- the-round browsing experience. Riggio believes these types of retail outlets are the way of the future. He also believes that the company will succeed with better merchandising and a coherent pricing strategy.142 Riggio doesn’t appreciate having his strategy ques- tioned, which is evident by the number of CEOs he’s lost in a short amount of time. Only time will tell if Reggio’s vision and strategy will fix what ails Barnes & Noble. APPLY THE 3-STEP PROBLEM- SOLVING APPROACH TO OB STEP 1: Define the problem. A. Look first at the Outcomes box of the Organizing Framework in Figure 15.9 to help identify the important problem(s) in this case. Remember that a problem is a gap between a desired and a current state. State your problem as a gap, and be sure to consider problems at all three levels. If more than one desired outcome is not being accomplished, decide which one is most impor- tant and focus on it for steps 2 and 3. B. Cases have protagonists (key players), and prob- lems are generally viewed from a particular pro- tagonist’s perspective. Take the perspective of Barnes & Noble employees. STEP 2: Identify causes of the problem by using material from this chapter, summarized in the Organiz- ing Framework shown in Figure 15.9. Causes will appear in either the Inputs box or the Processes box.  A. Start by looking at Figure 15.9 to identify which person factors, if any, are most likely causes to the defined problem. For each cause, ask your- self, Why is this a cause of the problem? Asking why multiple times is more likely to lead you to root causes of the problem. B. Follow the same process for the situation factors. C. Now consider the Processes box shown in Figure 15.9. Consider concepts listed at all three levels. For any concept that might be a cause, ask yourself, Why is this a cause? Again, do this for several iterations to arrive at root causes. D. To check the accuracy or appropriateness of the causes, map them onto the defined problem. STEP 3: Make your recommendations for solving the problem. Consider whether you want to resolve it, solve it, or dissolve it (see Section 1.5). Which recom- mendation is desirable and feasible?  A. Given the causes identified in Step 2, what are your best recommendations? Use the content in Chapter 15 or one of the earlier chapters to pro- pose a solution. B. You may find potential solutions in the OB in Action boxes and Applying OB boxes within this chapter. These features provide insights into what other individuals or companies are doing in relationship to the topic at hand. C. Create an action plan for implementing your recommendations. Organizational Behavior: A Practical, Problem-Solving Approach 635Organizational Design, Effectiveness, and Innovation CHAPTER 15 LEGAL/ETHICAL CHALLENGE Does Tax-Exempt Status for Universities Make Them Good Organizational Citizens? You learned that the balanced scorecard identifies four categories of organizational effectiveness criteria. Community-related measures of effectiveness, such as good corporate citizenship, are one component of the  internal business process perspective. This challenge considers the issue of community-related effectiveness. Surely universities and colleges are good for society, but could they do better? Consider the issue of federal income taxation. According to the Associ- ation of American Universities (AAU), “the vast majority of private and public universities and col- leges are tax-exempt entities as defined by the Internal Revenue Code . . . because of their educa- tional purposes—purposes that the federal govern- ment has long recognized as fundamental to fostering the productive and civic capacities of citi- zens.”143 The AAU further notes that “income for activities that are substantially related to the pur- pose of an institution’s tax exemption, charitable contributions received, and investment income are not subject to federal income tax.”144 Local Community Uproar Princeton University is New Jersey’s only Ivy League school. Its $22.7 billion endowment is the fourth larg- est in the United States.145 Not only has Princeton not paid income taxes on investment income from this endowment, but it has also been exempt from property taxes. This property tax exemption is problematic for the local Princeton community because residents end up paying more in taxes to make up the difference. “Those with the least resources . . . [are] subsidizing the nonpayment of some of the wealthiest property owners, namely Princeton University,” according to the town’s former mayor.146 Local homeowners filed suit against Princeton Uni- versity in 2011, challenging the tax-exempt status of the school. The 27 plaintiffs were low-income, dis- abled, or retirees. Bruce Afran, an attorney who repre- sented the residents, told The Wall Street Journal that, “We don’t want Princeton to just be a preserve of the well-off . . . so we designed this lawsuit to try to stabi- lize the tax base, to give these more disadvantaged families a chance to keep up.”147 The university settled the lawsuit in 2016 by agreeing to pay $18.2 million over six years. However, the question of future prop- erty tax liability remains unresolved.148 Congress Gets Involved Congress passed a federal budget bill in 2018 that tar- gets 35 colleges and universities that have large endowments. The law enacts a 1.4% excise tax on annual endowment income for institutions with assets greater than $500,000 per full-time student. Yale Uni- versity is one of the institutions impacted by this law because it has a total of $2 million per full-time stu- dent. Therefore, the university will have to pay an esti- mated $30.8 million on its 2018 endowment income. The tax will surely cause budgeting challenges for Yale and other affected institutions, an expert on endow- ments told the Yale Daily News. Yale is lobbying Con- gress to repeal the law.149 If You Were a Lawmaker Evaluating the Tax-Exempt Status of Princeton and Yale, How Would You Vote? 1. I would continue to give universities tax-exempt status on both endowments and property taxes. Universities most likely spend the tax-exempt money on scholarships, buildings, and funding research. All these expenditures provide value to society, suggesting that universities are good citizens. 2. I would vote for tax-exempt status on invest- ment income for the same reasons noted above, but not for the property taxes. Everyone else has to pay property taxes, and if colleges and universities paid them too, the funds would directly help the members of the surrounding community by reducing their tax burden. This is good citizenship. 3. I would revoke the tax-exempt status of invest- ment income and collect property taxes from the universities. Being a good corporate citizen necessitates that these institutions pay taxes like businesses and individuals do. 4. Invent other options. Organizational Behavior: A Practical, Problem-Solving Approach LO 16-1 Understand the major forces of organizational change. LO 16-2 Apply knowledge of various models to effectively manage change. LO 16-3 Outline and manage major causes of resistance to change. LO 16-4 Explain both the benefits and problems associated with stress. LO 16-5 Use OB knowledge and tools to manage change and stress. LO 16-6 Describe the implications of managing stress and change for you and managers. After reading this chapter, you should be able to: We conclude the book with how to manage change and stress. These organization-level processes (see Figure 16.1) are fitting ways to conclude our OB journey, because they either influence or are influenced by everything else you’ve learned. For instance, effectively managing change involves person and situation inputs, as well as numerous processes at the individual, group, and organizational levels. Similarly, the success of change initiatives is measured in terms of outcomes across the three levels of OB. We discuss stress along with change because change is one of the most common and significant causes of employee stress. Managing change effectively will not only reduce the stress in your life, but also help you stand out from the competition throughout your career. Managing Change and Stress16 Fe re nc S ze le pc se ny i/S hu tte rs to ck Organizational Behavior: A Practical, Problem-Solving Approach 637Managing Change and Stress CHAPTER 16 FIGURE 16.1 Organizing Framework for Understanding and Applying OB ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. INPUTS PROCESSES OUTCOMES Person Factors • Personality • Demographics • Skills and abilities • Values • Needs • Ethics • Stressors Situation Factors • Relationship quality • Leadership • Human resource problems/ prospects • Managerial behavior/ decisions • Culture (organizational) • Technology • Market forces • Social, political, and regulatory pressures • Stressors • Organizational mission and vision • Strategy Individual Level • Emotions • Cognitive appraisals • Coping strategies • Perceptions • Motivation • Trust • Communication Group/Team Level • Group/team dynamics • Conflict and negotiation • Decision making • Power, influence, and politics • Performance management • Leadership • Trust Organizational Level • Human resource policies and practices • Culture • Organizational design and effectiveness • Leading and managing change and stress • Trust Individual Level • Task performance • Work attitudes • Well-being • Citizenship behavior/ counterproductive behavior • Resistance to change • Turnover • Career outcomes • Stress (physical and emotional) • Accidents Group/Team Level • Group/team performance • Group satisfaction • Group cohesion and conflict • Resistance to change Organizational Level • Survival • Accounting/financial performance • Organizational performance • Customer satisfaction • Innovation • Reputation Organizational Behavior: A Practical, Problem-Solving Approach 638 Winning at Work To Move or Not to Move, That Is the Question Throughout your career you’ll likely have many jobs in many locations, and some of the most appealing may require you to relocate. Such opportunities can be very exciting and the decision to pack and go easy. However, depending on you (your age and career goals), the job (responsibilities and future promotion prospects), your life (proximity to family and your partner’s career), and the dis- tance (another state or country), the decision may be quite challenging. Relocation decisions often require you to bal- ance professional and personal benefits and costs. The fol- lowing considerations may help. 1. Think Big. This means consider your larger career and life goals. Who do you want to become and what do you want to accomplish professionally? What sort of life do you want outside of work? How would the move impact you as a partner and how will the move affect your partner? If you have children or plan to have chil- dren, what are the implications for them and for you as their parent? In short, consider your happiness within and between your professional and personal lives. 2. Keep a Foot in Each Place. Some moves, especially those that are international, can disconnect you from your previous network. Though you’ll presumably build new relationships and skills in your new location, it may be important also to work hard at preserving those ties in your original location. Plan for this, includ- ing who you’ll communicate with, how, and how often. It may be wise to plan periodic return trips to the other office, and/or make attempts to attend important events at the old location, even if you have to pay for it yourself. 3. Next Job. You’re relocating for a new position and the opportunities you expect it to provide. What opportuni- ties will likely be available to you because of the posi- tion you’re relocating for? Consider whether the move and associated cost (personal, social and professional) is worth it. 4. Is there a Parachute? Sometimes things don’t work out, you’re miserable, your family is miserable, or the job and location just don’t meet your expectations. Can you come back to your old position? Is there an- other attractive position within the company you could reasonably expect to obtain? Or, will you be on your own to find a new job with a different company? Some organizations provide employees a “leave of absence” or a trial period and will even hold the old position, but this is relatively rare (consider negotiating for this). And if moving expenses were covered in the relocation package, then you might have to pay back some por- tion should you have a change of heart. 5. Your Partner. If you currently have a partner this will likely be a major factor in your consideration. What about his or her job and career? Are there opportuni- ties for both of you? Does one need to make a com- promise, and if so, is it temporary or long-term? You may not be able to definitively answer these ques- tions, but they should be thoroughly explored and discussed. 6. Children. They of course matter too, especially de- pending on their ages, schools, friends, and family. Experts recommend talking to them as well, but how much you weigh their input and consider them in the decision is a deeply personal matter.1 What’s Ahead in This Chapter You’ve heard the statement: “The only constant in life is change.” Now we want you to think about what this fact might mean for your job and career. We created this chapter not only to help you figure this out, but also to give you practical knowledge and tools to help manage change at different levels in the Organizing Framework for OB. We’ll explore common forces or drivers for change, as well as learn about some popular models for understanding and managing change. Because it’s normal for peo- ple to resist change, it helps to learn why and what you can do about it. Since change is a major cause of stress at work, and in your life as a whole, we help you understand both its positive and negative aspects. The chapter concludes with suggestions for managing resistance, stress, and change more generally. Organizational Behavior: A Practical, Problem-Solving Approach 639Managing Change and Stress CHAPTER 16 THE BIGGER PICTURE There are a great many potential forces for organizational change. In order for you to under- stand and manage them more effectively, we organize them into two broad categories— external and internal. 16.1 FORCES FOR CHANGE Before we dive into a discussion of the forces for change, we’d like you to assess your own attitudes toward change. Remember that attitudes are tendencies to respond either favor- ably or unfavorably to a given object or situation. Complete Self-Assessment 16.1 to learn about your general attitudes toward change, and use what you learn in this chapter to help strengthen an already positive attitude or improve one that is not. Understand the major forces of organizational change. LO 16-1 Assessing Your Attitudes toward Change at Work Please be prepared to answer these questions if your instructor has assigned Self-Assessment 16.1 in Connect. 1. What is your overall attitude? Are you surprised? 2. Think of three examples from school or work that are consistent with your score. 3. Now think of a clearly negative attitude you held toward a particular change. What made this response different from or similar to your general attitudes toward change? 4. Describe two specific ways you can improve your attitudes toward change. (Hint: Draw on what you learned about attitudes.) SOURCE: Adapted from V. D. Miller, J. R. Johnson, and J. Grau, “Antecedents and Willingness to Participate in a Planned Organizational Change,” Journal of Applied Communication Research, 1994, 22: 59–80. SELF-ASSESSMENT 16.1 CAREER READINESS Now that you have a sense of your own attitudes toward change, consider this question about organizations: How do they know when they should change? What cues should they look for? Although there is no perfect answer to this question, a good place to start is to consider the forces for change. We categorize them into external and internal forces to make them easier to understand and remember (see Figure 16.2). External Forces External forces for change originate outside the organization. They can either present new opportunities for the organization to realize and grow, or they can cause its ultimate demise. The advent of smartphones created an opportunity that Apple seized and converted into a market-dominating platform with the iPhone. This same opportunity Organizational Behavior: A Practical, Problem-Solving Approach 640 PART 3 Organizational Processes caused the downfall of the BlackBerry as a dominant mobile phone player. Video streaming has been meteoric for Netflix, Hulu, and others, but it crushed and eliminated Blockbuster and other video stores. Ride sharing—Lyft and Uber—have not eliminated taxis but it has upended the industry around the world. Let us now consider the four key external forces for change: 1. Demographic characteristics. 2. Technological advancements. 3. Shareholder, customer, and market changes. 4. Social, political, and regulatory. Demographic Characteristics As shown in Figure 16.3, Asians are now the fastest- growing immigrant group in the United States, surpassing Latin Americans (including those from Mexico).2 Millennials (those born between 1981 and 1996) should pass Baby Boomers as the largest generation in the U.S. population by 2019, and they are already the largest generation in the workforce (35 percent of the total). Another interesting statistic—20 percent of U.S. citizens live in multigenerational households, a trend that exists across racial groups and is nearly as high as it was in 1950!3 Demographic factors like these are motivating organizations to change benefits and aspects of the work environ- ment in order to attract, motivate, and retain diverse employees. This has caused organiza- tions to change many aspects of their business, from the products and services they offer, how they are delivered, to how they attract, hire, and retain employees. Persistently high unemployment levels among young people around the world are cre- ating a strong force for change felt by governments and organizations alike. Many believe much of the unrest in the Middle East and Europe is fueled by a younger population that cannot find meaningful employment opportunities. FIGURE 16.2 External and Internal Forces for Change Internal Forces • Unmet needs • Job dissatisfaction • Absenteeism and turnover • Productivity • Participation/suggestions Human Resource Problems/Prospects Managerial Behavior /Decisions • Conflict • Leadership • Reward systems • Structural reorganization The need for change External Forces Demographic Characteristics • Age • Education • Skill level • Gender • Immigration Technological Advancements • Manufacturing automation • Information technology Shareholder, Customer, and Market Changes • Changing customer preferences • Domestic and international competition • Mergers and acquisitions Social and Political Pressures • War • Values • Leadership • Regulatory/legislative Organizational Behavior: A Practical, Problem-Solving Approach 641Managing Change and Stress CHAPTER 16 Technological Advancements Technology continues to be a common means for improving productivity, competitiveness, and customer service. The effect of social media, for instance, cannot be overstated as it has changed every dimension of our lives. Virtual reality (VR) has already begun to revolutionize medicine, for example, by enabling physi- cians to see 3-D images of tumors and organs without cutting the patient open. Microsoft HoloLens VR allows medical students to virtually inspect parts of the human anatomy in less than half the time required by students using only cadavers. The scalability of such applications is impactful too, as the growing global population will require far more clinicians to be trained, in more and sometimes remote places, and VR may be part of the answer.4 Drones are doing much more than delivering packages and taking aerial videos of your favorite hike or beach. They are also delivering blood and other emergency supplies. Zipline is helping the government of Rwanda provide medical care to residents who are isolated due to distance or a lack of infrastructure, such as roads, clinics, and hospitals. Expertise and supplies are going to those in need via drone, rather than patients traveling to find care.5 Chipotle, the fresh-Mex restaurant chain, is utilizing technology to further boost its robust sales and fuel its tremendous growth. For instance, technology is used to build cus- tomer loyalty. Chipotle, like others in the industry, now generates a significant and grow- ing proportion of their sales from online orders—up 64 percent from a year earlier when they accounted for 13 percent of total sales in early 2019. The company has partnered with Venmo, a digital wallet, to facilitate sales and build customer loyalty. Chipotle has taken it FIGURE 16.3 Racial Demographic Trends in the United States: 1965–2065 1965 1975 1985 Actual Asians Projected to Become the Largest Immigrant Group, Surpassing Hispanics % of immigrant population Notes: Whites, Blacks and Asians include only single-race non-Hispanics. Asians include Pacific Islanders. Hispanics are of any race. Other races shown but not labeled. Projected 1995 2005 2015 80 59 38 25 21 18 1 4 6 7 7 8 14 25 36 44 48 47 5 11 19 23 23 26 2025 2035 2045 2055 2065 18 18 18 19 20 8 9 9 9 9 43 40 37 34 31 29 32 34 36 38 White Black Hispanic Asian SOURCES: Pew Research Center estimates for 1965–2015 based on adjusted census data; Pew Research Center. “Modern Immigration Wave Brings 59 Million to U.S., Driving Population Growth and Change Through 2065: Views of Immigration’s Impact on U.S. Society Mixed.” Washington, DC, 2015. Organizational Behavior: A Practical, Problem-Solving Approach 642 PART 3 Organizational Processes a step further and installed separate food preparation lines to serve digital orders. The reasoning is two-pronged—to meet the growing demand and avoid slowing down and erod- ing the experience of in-store customers.6 Each of these may present job and career opportunities for you. OB will certainly play a central role in the level of success individuals and organizations will have with each trend. Put another way, it is people who design and use such technological tools, interpret the data, formulate a plan, and then apply it effectively. Shareholder, Customer, and Market Changes Increased shareholder activism is one of the most significant forces for change public companies have faced in the past sev- eral years. Shareholders have pressed organizations to be more efficient, respond to legal lapses, address privacy issues and hacks, and justify executive compensation packages. Wall Street firm Janna Partners and CalSTRS, the enormous California public school teachers’ pension fund wrote a letter to Apple insisting it explore and address the detri- mental effects of its products on children. In the letter, Jana stated: “we believe the long- term health of its youngest customers and the health of the society, our economy, and the company itself are inextricably linked.”7 Social, Political, and Regulatory Uber continues to battle regulators, governments, unions, and others regarding business practices, infringement on taxi services and licenses, and employee versus contractor status of its drivers. These challenges are routinely in the news, including its especially consequential conflict with the London Transit Authority. Taxi drivers, the famous black cabs, face some of the most stringent qualifications of any in the world. They have argued Uber’s drivers have unfair advantage and are circumventing Chipotle Mexican Grill has taken an especially effective approach to online orders. The app is only one component, as they have also created a “second line” behind the counter to fill these orders. This prevents the growing online sales from negatively impacting the quality and speed of service delivered to in-store customers. BestStockFoto/Shutterstock Organizational Behavior: A Practical, Problem-Solving Approach 643Managing Change and Stress CHAPTER 16 the same requirements they must meet. If the Authority revokes Uber’s license to operate in the city, which it has done in the past, the company will lose one of its largest and most lucrative markets in the world.8 Cross cultural and cross boarder differences can also drive change. Tech companies often face tougher regulations and big fines in Europe, such as the billions of dollars European Union regulators have levied against Google,9 and the Indian government’s potentially severe restrictions on what Amazon and Walmart can sell on their sites in the country.10 Internal Forces Internal forces for change come from inside the organization. Internal forces for change come from both human resource problems and managerial behavior and decisions. Human Resource Problems or Prospects Human resource challenges stem from employee perceptions regarding the way they are treated at work and the match between individual and organization needs and desires. Dissatisfaction is a symptom of unmet needs or mistreatment and most often requires attention from company leadership and may signal a need for change. Similarly, unusual levels of absenteeism, work slowdowns, strikes, and turnover can be powerful internal forces for change. American Airlines’ on- time performance, for instance, took a hit when mechanics slowed the pace of their work due to a lack of progress in contract negotiations.11 To help combat these challenges, leaders and managers of change should encourage employee participation early and throughout the change process. Regulators can be major forces for change, either helping or hurting a company or industry. Uber, for instance, has battled regulators across the globe, perhaps most notably in London. Decisions by regulators there could have significant consequences locally and globally if other cities and countries adopt similar policies. Anthony Devlin/PA Images/Alamy Stock Photo Organizational Behavior: A Practical, Problem-Solving Approach 644 PART 3 Organizational Processes The saying “the only constant is change” also applies to the CEO’s office. The top bosses at some compa- nies seem to turn over as frequently as call center employees. Toy maker Mattel changed CEOs three times between 2015 and 2019. Seemingly none has been able to stem losses and achieve profitability, let alone new growth.12 The Top Turns Fast and Often Investors’ desire for improved performance has spurred a dramatic increase in CEO change as a means for such improvements. Outplacement firm Challenger, Gray, & Christmas reported a 25 percent increase in top executive turnover from 2017 to 2018,13 and this increase occurred in a relatively strong economy. Reasons for Turnover Of course, there are many reasons CEOs leave—retirement, other opportunities, #MeToo and other questionable conduct,14 and even illness and death. Sadly, Sergio Marchionne, who was credited with saving or at least reviving Fiat and Chrysler, died due to complications of shoulder surgery.15 But research provides some measure of support for CEO change and performance improvement, such as that changes aligning with sound organizational strategy are more likely to generate gains, specifically, when a CEO is replaced due to differences with the Board’s view on appropriate organizational strategy.16 Gains Are Not Quick The same research showed that the best performing companies often suffered stock price declines In the first year after the CEO’s departure, but the prices rebounded and matched the competition in about three years.17 The same companies typically tied the new CEO’s compensation to long-term incentives, rather than short-term quarterly metrics, and they also tended to limit stock buy-backs (a very common way of improving short-term earnings per share). Companies and new CEOs who were successful also increased investment In the business (capital expenditures) by 36 percent annually, much higher than average.18 YOUR THOUGHTS? 1. What are your thoughts about removing CEOs in order to boost organizational performance? 2. Assume you’re on the board of directors, what three elements of CEO performance would you consider most important when deciding whether to force a CEO out? 3. What are three potential drawbacks to CEO turn- over? The C-Suite Revolving Door OB in Action Managerial Behaviors and Decisions Excessive interpersonal conflict between managers and their subordinates or the board of directors can be a sign that change is needed, as can misconduct. 2018 alone saw numerous CEOs ousted or resign due to alleged or actual misconduct. Martin Sorrell, founder and CEO of one of the world’s larg- est advertising and marketing firms, WPP, stepped down due to allegations of misconduct, and Brian Krzanich, former CEO of Intel, left after it was learned he had a consensual relationship with a subordinate. No scandal, no abuse, but such relationships violate com- pany policies.19 Andrew Mason, founder and former CEO of Groupon, was fired due to his strategy and the firm’s underperformance. Mason had decided to take the firm aggressively into selling goods and not just coupons for discounts with local merchants. These actions, com- bined with a disappointing international expansion, led the board to conclude that his decisions and direction were not right for the company. For his part, Mason said: “After Both internal (employees) and external (investors) forces can lead to changes in senior leadership, as described in the OB in Action box. Organizational Behavior: A Practical, Problem-Solving Approach 645Managing Change and Stress CHAPTER 16 four and a half intense and wonderful years as CEO of Groupon, I’ve decided I’d like to spend more time with my family. Just kidding—I was fired today.”20 When leadership at the top changes, it is common for incoming executives to clean house and insert their own team. Airbus, the European aerospace pioneer (more than just airplanes), appointed a new CEO in early 2019, Guillaume Faury. His work was cut out for him, as the company continues to face intense competition from the likes of Boeing, and the challenges of overcoming bribery and corruption allegations. Faury is expected to change things, and to do this he brought in his own executive team.21 Now that you have a sense of the various forces of change, let’s explore some of the common forms of change and models used to both understand and manage change more effectively. Changes in an organization’s strategy can cause leadership to make a wide array of other changes, including removing senior leaders. This can even happen to founders, as was the case with Andrew Mason at Groupon. Christoph Soeder/dapd/AP Images Organizational Behavior: A Practical, Problem-Solving Approach 646 PART 3 Organizational Processes 16.2 TYPES AND MODELS OF CHANGE To manage change effectively, a contingency approach suggests you’d be wise to have a variety of approaches or change management tools and use the one best suited for a par- ticular change. We provide such knowledge and tools in this section. Let’s start our discus- sion by looking at three general types of changes. Three General Types of Change A useful high-level way to organize and think about change is in terms of its degree of complexity, cost, and uncertainty, and classify it as either adaptive, innovative, or radically innovative (see Figure 16.4). 1. Adaptive change reintroduces a familiar practice either in a different unit or in the same unit at a different point in time. Adaptive changes are the least complex, costly, and uncertain. Allowing the market research group to operate on flextime, after allowing the sales group to do so, is an example of adapting the scheduling practices in one group based on those in another. Adaptive changes are not particularly threat- ening to employees because they are at least somewhat familiar. 2. Innovative change introduces a practice that is new to the organization and is midway on the continuum of complexity, cost, and uncertainty. If competitors in your industry utilize shared office space, but your company hasn’t, then doing so qualifies as innovative change. Innovative changes bring more uncertainty and cause more con- cern than adaptive changes. THE BIGGER PICTURE This section provides insights into general types of organizational changes, as well as reviews of Lewin’s change model, a systems model of change, Kotter’s eight steps for leading organizational change, and the organizational development approach. Each serves as an organizational-level tool for managing outcomes across the levels of our Organizing Frame- work for Understanding and Applying OB. Apply knowledge of various models to effectively manage change. LO 16-2 • Degree of complexity, cost, and uncertainty • Potential for resistance to change HighLow Introducing a practice new to the organization Innovative change Reintroducing a familiar practice Adaptive change Introducing a practice new to the industry Radically innovative change FIGURE 16.4 Generic Typology of Organizational Change Organizational Behavior: A Practical, Problem-Solving Approach 647Managing Change and Stress CHAPTER 16 3. Radically innovative change introduces a practice new to the industry and is at the high end of the continuum of complexity, cost, and uncertainty. The introduction of the sharing economy has been a radical change for many industries, such as trans- portation (Uber and Lyft) and housing (Airbnb). Driverless cars are and will be radically innovative for multiple industries. Many players are obvious and already involved. For instance, taxi companies will likely still exist but without drivers, as will the likes of Uber, Lyft, and other ride sharing companies. Automo- bile and technology companies are already deeply invested, but what about others? Who else? It’s easy to see how health care providers could dispatch vehicles to transport patients to appointments, but what will this mean for the legal driving age and car ownership? Furthermore, as change moves from adaptive to radical it requires and results in an increasingly profound role for people, processes, and culture.22 Therefore, if you want to radically innovate you had better understand and apply OB. Now that you have a way of describing and classifying types of change, we will explore several models to help you understand and manage change more effectively. Lewin’s Change Model Most models of organizational change originated from the landmark work of social psy- chologist Kurt Lewin. Lewin developed a three-stage model of planned change that explained how to initiate, manage, and stabilize the change process.23 The three stages are unfreezing, changing, and refreezing (see Figure 16.5). Unfreezing The focus of the unfreezing stage is creating motivation to change. The most common, but not necessarily most effective, way of communicating a convincing reason to change is to demonstrate current practices are less than ideal. Data related to employee or customer satisfaction, or showing market share gains made by competitors, is often used. The driverless car example above will require unfreezing for, among others, consumers. Some claim the end of conventional car ownership is quickly coming. Purchas- ing, maintaining, insuring, and keeping a personal car is on the way out.24 Changing Because change calls for learning and doing things differently, this stage entails providing employees with new information, new behavioral models, new processes or procedures, new equipment, new technology, or new ways of getting the job done. How does management know what to change? There is no simple answer to this ques- tion. Organizational change can be aimed at improvement or growth, or it can focus on solving a problem such as poor customer service or low productivity. Change also can be targeted at different levels in an organization. The point to keep in mind is that change should be targeted at some type of desired end-result. The Organizing Framework for Understanding and Applying OB is a good tool to use for identifying specific targets or purposes for change. FIGURE 16.5 Lewin Model of Change Unfreezing Create the motivation to change Changing Introduce new information, models, & procedures Refreezing Support & reinforce the change Organizational Behavior: A Practical, Problem-Solving Approach 648 PART 3 Organizational Processes Refreezing The goal of refreezing is to support and reinforce the change. Managers support change by helping employees integrate the new behavior or attitude into their accustomed way of doing things. They can first give employees a chance to exhibit the new behaviors or attitudes. Once this happens, positive reinforcement can encourage the desired change. More specifically, continuous reinforcement with extrinsic rewards (recog- nition, feedback, bonuses) is useful early in the change process. This helps establish clear links between the desired new behaviors and the reinforcing reward or recognition. And don’t forget role modeling. Walking the talk of change is arguably the most powerful way to get others to follow. A Systems Model of Change The systems approach to change is based on the notion that any change, no matter how large or small, has ripple effects. Promoting an individual to a new work group affects group dynamics in both the old and new groups. Creating project or work teams may necessitate revamping compensation practices. These examples illustrate that change creates additional change. A systems model of change is similar to the systems framework used in the Organizing Framework but a bit more complex (see Figure 16.6). This systems model of change FIGURE 16.6 Systems Model of Change Inputs Strategic Plans Target Elements of Change • Mission • Vision • Readiness (individual and organizational) • Internal strengths and weaknesses • External opportunities and threats • Policies • Procedures • Roles • Structure • Rewards • Physical setting • Strategies • Goals Organizational Arrangements • Knowledge • Ability • Attitudes • Motivation • Behavior People • Organizational level • Department/ group level • Individual level • Organization culture • Group processes • Interpersonal interactions • Communication • Leadership Social Factors Outputs • Processes • Work flow • Job design • Technology Methods SOURCES: Fuqua, D. R. and Kurpius, D. J., “Conceptual Models in Organizational Consultation,” Journal of Counseling and Development, July–August 1993, 602–618; and Nadler, David A., and Michael L. Tushman. “Organizational Frame Bending: Principles for Managing Reorientation.” Academy of Management Executive 3, no. 3 (1989): 194–204. https://pdfs.semanticscholar.org/3250/e8a8f2f99c94e362fabcb2147a8ec1395d6e . Organizational Behavior: A Practical, Problem-Solving Approach 649Managing Change and Stress CHAPTER 16 includes inputs, strategic plans, target elements of change, and outputs. It is a very practi- cal approach that can diagnose what to change and how to evaluate the success of a change effort. Let’s explore its individual components. Inputs The starting point for organizational change should be asking and answering the question: “Why change?” Leaders need to be clear about the overarching motive or reason for change, and elements in the inputs box in Figure 16.6 can help. For instance, it is wise to ensure the intended changes align with the organization’s mission, vision, and resulting strategic plan.25 Mission statements express the reason an organization exists. Some examples of clear and effective mission statements follow: • Instagram—“To capture and share the world’s moments.”26 • TED (Technology, Entertainment, and Design)—“Spread ideas.”27 • Patagonia—“Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.”28 • Sweetgreen—“To inspire healthier communities by connecting people to real food.”29 All well and good, you say, but how does an organization create an effective mission? Sally Jewell, former CEO of REI, the outdoor clothing and equipment retailer, describes how she and her team of 150 leaders went about formulating a mission for the company. The details are in the Applying OB box. Applying OB Missions are big-picture, long term, and existential. These qualities mean they are often quite general, but they cannot be too general, because that would make them abstract and meaningless. Sally Jewell, when CEO of outdoor clothing and adventure retailer REI, followed a very useful and repeatable process when refining the company’s mission. She began by assembling a representative team of leaders. It’s best to be inclusive rather than exclusive here, because engaging people in the process helps ensure their interests are reflected in the mission and they will be more likely to “live it.” Then she asked team members: 1. Why does our organization exist? Ask this ques- tion three to five times to get a deeper, richer view. 2. What would happen if our organization went away? 3. Why do I devote my creative energies to this orga- nization? 4. Compile and consolidate the answers to these questions.30 This process resulted in REI’s mission statement: “To inspire, educate, and outfit for a lifetime of outdoor adventure and stewardship.”31 How to Formulate a Meaningful Mission Statement Another input in the systems model of change is vision, which is a compelling future state for an organization. Missions typically imply little or nothing about change and instead define the organization’s overall purpose. Effective visions, in contrast, describe a highly desirable future and outline how the organization will get there, such as which markets, services, products, and people will be involved, and how all these elements Organizational Behavior: A Practical, Problem-Solving Approach 650 PART 3 Organizational Processes align with the organization’s values. Interface Inc., a world leader in sustainability and commercial interi- ors, captures all these and more in its vision: Interface will become the first name in commercial and institutional interiors worldwide through its commitment to people, process, product, place, and profits. We will strive to create an organization wherein all people are accorded unconditional respect and dignity; one that allows each person to continuously learn and develop. We will focus on product (which includes service) through constant emphasis on process quality and engineering, which we will combine with careful attention to our customers’ needs so as always to deliver superior value to our customers, thereby maximizing all stakeholders’ satisfaction. We will honor the places where we do business by endeavoring to become the first name in industrial ecology, a corporation that cherishes nature and restores the environment. Interface will lead by example and validate by results, including profits, leaving the world a better place than when we began, and we will be restorative through the power of our influence in the world.32 The following OB in Action box describes how founder of TOMS Shoes Blake Mycoskie’s compelling vision has motivated him and now many others to build giving into their busi- ness models. Patagonia, an outdoor clothing and equipment retailer, was one of the first to adopt a vision focused on the environment and employee well-being. lentamart/Shutterstock Changing the World with Shoes and Much More OB in Action A vision for change and doing well by doing good has always been a fundamental driving force for entrepreneur Blake Mycoskie. Gary Gershoff/Getty Images Vision for Change The Idea for “Tomorrow’s Shoes”—now known as TOMS—was born In 2006 during a trip to Argentina. This is when founder and now serial entrepreneur Blake Mycoskie saw the impact a pair of shoes could make for kids without them. He quickly realized that giving one pair to one person was not enough; after all, where and how would they get their next pair? This is where the idea of “buy one-give one” was born. Sell a pair of shoes to someone who can afford them, and then use part of the proceeds to make a pair to give to someone that can’t. 33 Impact Besides being cool and trendy, the vision of “improving lives” made the shoes even more appealing to customers, as well as employees and suppliers. Sales have since exploded, but perhaps the better measure is more than 60 million pairs of shoes have been donated.34 Mycoskie is quick to point out, however, that shoes are simply a vehicle or means for realizing his vision for changing Organizational Behavior: A Practical, Problem-Solving Approach 651Managing Change and Stress CHAPTER 16 Readiness for change is the strength of our beliefs and attitudes about the extent to which changes are needed and our capacity to successfully implement them. Readiness can be an individual or an organization-level input.36 Put another way, effective change at work requires both the employees and the employer have high readiness and are willing and able to change. Readiness has four components: 1. Necessity for change. 2. Top-management support for change efforts. 3. Personal ability to cope with changes. 4. Perceived personal consequences of change. The first two pertain to an organization’s readiness and the last two to your readiness. Self-Assessment 16.2 will help you gauge your own readiness for change. You can also use it to measure the readiness of an organization to which you belong. What Is Your Readiness for Change? Please be prepared to answer these questions if your instructor has assigned Self-Assessment 16.2 in Connect. 1. Focusing on your personal readiness, which component is higher? 2. Describe how you think this affects how you deal with this change? Think of how it affects you and your interactions with coworkers. 3. Of the two organizational readiness components, which is the lowest? 4. How do you think this result will affect the success of the particular change? Be specific. 5. Given what the readiness measure tells you, what do you recommend to improve your readiness and your organization’s readiness? SELF-ASSESSMENT 16.2 CAREER READINESS people’s lives. He has since applied the make-one- give-one practice in other ways, such as coffee, more than 250,000 weeks’ supply of clean drinking water, and over 360,000 pairs of glasses or medical treatments to restore sight.35 YOUR THOUGHTS? 1. How or why is Mycoskie’s vision of “improving lives” compelling to you? 2. Think of one other product or service you think could improve lives. 3. What do you think are the challenges with a business using a buy-one-make-one model? 4. Related to #3, why do you think we don’t see more companies doing this? After all, Mycoskie and TOMS have been incredibly successful. Strategic Plans A strategic plan outlines an organization’s long-term direction and the actions necessary to achieve planned results. Among other tools, strategic plans can use SWOT analysis to identify strengths, weaknesses, opportunities, and threats. In the pro- cess model of change, SWOT analysis provides input by helping managers develop an organizational strategy for reaching their desired change goals, such as higher profits, cus- tomer satisfaction, quality, or return on investment, acceptable levels of turnover and employee satisfaction. Organizational Behavior: A Practical, Problem-Solving Approach 652 PART 3 Organizational Processes Target Elements of Change Target elements of change are the components of an organization that can be changed. In the systems model they essentially represent levers managers can push and pull to influence various aspects of an organization. The target elements of change can also help diagnose problems and identify change-related solutions. Figure 16.6 illustrates four target elements: 1. Organizational arrangements. 2. Social factors. 3. Methods. 4. People. Each target element of change contains a subset of more detailed organizational fea- tures, all of which are OB topics covered in this book and included in the Organizing Framework. There are two final issues to keep in mind about the target elements. First, the double- headed arrows in the figure are intended to communicate that change ripples across an organization. Changing a reward system, for instance, to reinforce team rather than indi- vidual performance (an organizational arrangement) is likely to change organizational culture (a social factor). Second, the “people” component is at the center of the target elements of the change box because all organizational change ultimately affects employees—and vice versa. This means organizational change is more likely to succeed when managers proactively consider the impact of change on employees. Outputs Goals or results are the final piece of the process model of change and should be consistent with an organization’s strategic plan. Figure 16.6 indicates that change can be directed at the individual, group, or organizational level, and change efforts are more complicated and challenging to manage when targeted at the organizational level. This is because organizational-level changes are more likely to affect more than one of the target elements of change shown in the model. Now that you’ve learned the details of the systems approach to change, we shift our focus to one of the most popular approaches to organizational change since the 1990s— Kotter’s eight steps. Kotter’s Eight-Step Organizational Change Process John Kotter, a world-renowned expert in leadership and change management, believes organizational change most often fails not because of inadequate planning but because of ineffective implementation. To help overcome this challenge, he proposed an eight-step process for leading change (see Figure 16.7). This approach differs from the systems model in that it does not help diagnose the need for change or the targets of change. It is some- what like Lewin’s model, however, as it also guides managers through a sequential process. For instance, you could map Kotter’s first four steps onto Lewin’s “unfreezing,” steps 5, 6, and 7 onto “changing,” and step 8 onto “refreezing.” The value of Kotter’s approach is its recommendations about specific behaviors and activities. Notice that vision and strategy are central components, as in the systems model. But Kotter insists the steps need to be followed in sequence and none can be skipped. It therefore requires a tremendous commitment of time, money, and people to implement Kotter’s eight steps. This approach can prove very challenging for most organizations, and particularly for individuals, to implement. Its hurdles, however, are partially overcome by our final approach to change—organizational development (OD). Creating Change through Organizational Development (OD) One way to think of organizational development (OD) is to approach the organization as if it were a sick patient: “Diagnose” its ills, prescribe and implement an “intervention,” and Organizational Behavior: A Practical, Problem-Solving Approach 653Managing Change and Stress CHAPTER 16 STEP DESCRIPTION 1. Establish a sense of urgency. Unfreeze the organization using a compelling reason why change is needed. 2. Create the guiding coalition. Create a team with appropriate knowledge and enough power to lead change. 3. Develop a vision and strategy. Create a vision to inspire and a strategic plan to guide the change process. 4. Communicate the change vision. Implement a communication strategy and “overcommunicate” the new vision and strategic plan. 5. Empower broad- based action. Eliminate obstacles (processes and people) and encourage risk taking and creative problem solving. 6. Generate short-term wins. Plan for and create short-term “wins” or improvements. Recognize and reward people who contribute to the wins. 7. Consolidate gains and produce more change. Allow guiding coalition to use credibility from short-term wins to create more change. Additional people are brought into the change process as change cascades throughout the organization. Attempts are made to energize the change process. 8. Anchor new approaches in the culture. Reinforce the changes by highlighting connections between new behaviors and processes and organizational success. Embed these in performance management and other processes—hiring, promotion, and leadership development and succession. FIGURE 16.7 Eight Steps to Leading Organizational Change SOURCE: Kotter, John P. Leading Change. Boston: Harvard Business School Press, 1996. “evaluate” progress or effectiveness. If the evaluation reveals that positive change has not occurred, this information provides feedback you can use to refine the diagnosis or con- sider the extent to which the intervention was effectively implemented or appropriate in the first place (see Figure 16.8). FIGURE 16.8 Organizational Development Processes SOURCE: French, Wendell L., and Cecil Bell. Organization Development: Behavioral Interventions for Organizational Improvement. Englewood Cliffs, NJ: Prentice Hall, 1978. 1. Diagnosis What is the problem and its causes? 2. Intervention What can be done to solve the problem? 4. Feedback What does the evaluation suggest about the diagnosis and the e ectiveness of the intervention? 3. Evaluation Is the intervention working? Organizational Behavior: A Practical, Problem-Solving Approach 654 PART 3 Organizational Processes Let’s improve your understanding by exploring each of these components in more detail. 1. Diagnosis: What is the problem and its causes? Many means can be used to answer this question: interviews, surveys, meetings, and direct observation. We recommend the 3-Step Problem-Solving Approach and the Organizing Framework to help. The target elements in the systems model of change can also be useful. For example, you might ask, “To what extent does the structure or the reward system contribute to the problem?” 2. Intervention: What can be done to solve the problem? The treatment or intervention represents the changes being made to solve the problem and are based on the causes. If the cause of low-quality service is poor teamwork, then team building might be a useful intervention. No single intervention is best in all circumstances—the best solu- tion depends on the situation. 3. Evaluation: Is the intervention working? Evaluation requires measurement and the mea- sures must match the problem. If the problem is job performance you are highly unlikely to properly evaluate teamwork or quality of service if you measure only sales volume. The final evaluation should compare measures of effectiveness obtained before and after the intervention. 4. Feedback: What does the evaluation suggest about the diagnosis and the effectiveness of the intervention? If the evaluation reveals the intervention worked, then the OD pro- cess is complete and you can consider how best to “refreeze” the changes. However, a negative evaluation means one of two things: either (1) the initial diagnosis was wrong, or (2) the intervention was inappropriate or not implemented effectively. Negative evaluations generally require you to collect more information about steps 1 and 2 in the OD process shown in Figure 16.8. Now that we’ve explored a number of key models of change, let’s learn about something that affects almost every change, regardless of the model or approach—resistance. Organizational Behavior: A Practical, Problem-Solving Approach 655Managing Change and Stress CHAPTER 16 THE BIGGER PICTURE You can’t think about change without also thinking about resistance. If you are going to effectively manage change you need to understand and manage resistance. Your ability to do this is fundamental to your effectiveness in managing this important organizational-level process and its many related outcomes in the Organizing Framework for Understanding and Applying OB. 16.3 UNDERSTANDING RESISTANCE TO CHANGE Resistance to change is any thought, emotion, or behavior that does not align with actual or potential changes to existing routines. People can resist both actual and imagined events, and both individuals and groups can resist. If you think about change in terms of influence, you can assume people will either comply, commit, or resist.37 This perspective leads many people to conclude that resistance to change represents a failed influence attempt. And while resistance can indeed doom change initiatives, we are going to challenge this assumption and approach resistance in a different and more useful way to help you gain more compliance and commitment to change. To better understand the nature of resistance to change, you can learn about the level of your own dispositional resistance to change by completing Self-Assessment 16.3. Know- ing this about yourself will help you manage your own tendencies and better recognize them in others. Both insights will make you more successful with organizational change throughout your career. A Dynamic View of Resistance Many managers of change see resistance as employees pursuing their own interests, if not actively undermining the interests of the manager or larger organization. Accordingly, the cause of resistance resides solely with the individual employee, a narrow view of resistance. In contrast, some of the most widely recognized change experts argue that resistance does Outline and manage major causes of resistance to change. LO 16-3 Assessing Your Resistance to Change Please be prepared to answer these questions if your instructor has assigned Self- Assessment 16.3 in Connect. 1. Which of the four components is highest? 2. Given your answer to question 1, what are the potential implications if your manager changes? 3. Describe two things you can do to help reduce the negative impact of your attribute with the lowest score. 4. Describe two things you can do to help reduce the negative impact of your attribute with the second-lowest score. SOURCE: Adapted with permission from S. Oreg, “Resistance to Change: Developing an Individual Differences Measure,” Journal of Applied Psychology 88, no. 4, 682. SELF-ASSESSMENT 16.3 CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach 656 PART 3 Organizational Processes not reside within the individual but instead is a result of the context in which change occurs.38 Resistance is caused by an interaction between change recipients, change agents, and the relationships between the two. This is a more complex and systems approach to resistance, one that is dynamic and illustrated in Figure 16.9. Causes of Resistance to Change Figure 16.9 presents a model of resistance characterized by a dynamic interaction among three causes, rather than being caused solely by irrational and stubborn recipients of change. Recipients resist partly based on their perceptions of change, which are very much influenced by the attitudes and behaviors exhibited by change agents and the level of trust in the relationship between change agents and recipients. Similarly, change agents’ actions and perceptions are affected by the recipients’ actions and inactions and the quality of relationships with recipients.39 Let’s consider each cause of resistance. Recipient Characteristics Recipient characteristics include perceptions and a vari- ety of individual differences that help explain actions (engaging in new behaviors) and inactions (failing to engage in new behaviors). Six of the most common recipient charac- teristics are:40 1. Dispositional resistance to change. Individuals with high dispositional resistance to  change, a stable personality trait, are “less likely to voluntarily initiate changes and more likely to form negative attitudes toward the changes [they] encounter.”41 2. Surprise and fear of the unknown. When innovative or radically different changes are introduced without warning, affected employees often become fearful of the implica- tions. The same is true when managers announce new goals without explaining spe- cifically how the goals will be achieved. Imagine how you would feel if your boss said your department was going to increase sales by 25 percent without hiring any new employees. Unrealistic or unclear goals commonly contribute to resistance. 3. Fear of failure. Many changes cause employees to doubt their capabilities. Self-doubt erodes self-confidence and performance, and it also impedes personal growth and development. 4. Loss of status and/or job security. Changes that threaten to alter power bases or elimi- nate jobs can trigger strong resistance. Empowerment programs, when done well, will FIGURE 16.9 Dynamic Model of Resistance to Change and Its Causes Resistance to Change Recipient characteristics Change agent characteristics Change agent–recipient relationship Organizational Behavior: A Practical, Problem-Solving Approach 657Managing Change and Stress CHAPTER 16 often shift responsibilities from managers to others, which can result in some feeling threatened and resisting. Restructurings can include downsizing, and employees rarely if ever support changes costing their jobs. 5. Peer pressure. Someone who is not directly affected by a change may actively resist it to protect the interests of friends and coworkers. 6. Past success. Success can breed complacency. It also can foster a stubbornness to change because people come to believe what has worked in the past will work in the future. Change Agent Characteristics A change agent is someone who is a catalyst in helping organizations deal with old problems in new ways. Change agents can be external consultants or internal employees, and their characteristics can include actions or inactions. For instance, opaque planning and a lack of participation and compassion dur- ing implementation can undermine a change agent’s effectiveness. But in a more positive light, research shows supportive change agents (managers) who communicate timely and useful change-related information, clarify change-related expectations for employees and from employees, and foster trust are more likely to have employees who perceived the change positively and champion or commit rather than simply comply.42 More generally, change agents play an important role in helping others make sense of the changes—why is it happening, how will it affect them, and what does it mean for the future of the company and their own jobs and careers?43 Therefore, the role of change agent can be extremely important, and we want you and other change agents to avoid some common mistakes. Table 16.1 outlines five. Enhance your own effectiveness by becoming aware of and avoiding these pitfalls. TABLE 16.1 Common Pitfalls Effective Change Agents Should Avoid Decisions that disrupt cultural traditions or group relationships. Whenever individuals are transferred, promoted, or reassigned, cultural and group dynamics are often thrown into disequilibrium. Resistance increases because of the uncertainty associated with dealing with new team members and their expectations. Personality conflicts. Change agents who display narcissism, excessive ego, lack of fair- ness, or any of the traits of bad leaders are likely to engender resistance from recipients. Lack of tact or poor timing. Undue resistance can occur because change agents introduce change in an insensitive manner or at an awkward time. They should not only “sell” the benefits of the change but also explain why it is strategically important to the organization’s success and must occur at a particular time. Poor leadership style. Research shows people are less likely to resist change when the change agent uses transformational leadership and makes the change about the organization and the employees, rather than about the leader him- or herself.44 Failing to legitimize change. Active, honest communication and aligned reward systems help recipients understand and believe in the value of changes. Change agents must also explain how change will lead to positive personal and organizational benefits. They need a clear understanding about how recipients’ jobs will change and how they will be rewarded.45 For example, an employee is unlikely to support a change effort he or she perceives as requiring more work and more pressure without a commensurate increase in pay. Change Agent–Recipient Relationship In general, resistance is reduced when change agents and recipients have a positive, trusting relationship. Trust consists of mutual faith in others’ intentions and behavior. Mutual mistrust can doom to failure an otherwise well-conceived change.46 Managers who trust their employees make the change process an open, honest, and participative affair. Employees who trust management are more willing to expend extra effort and take chances with something different. Organizational Behavior: A Practical, Problem-Solving Approach 658 PART 3 Organizational Processes 16.4 THE GOOD AND THE BAD OF STRESS Everyone experiences stress regardless of age or stage of their career. The American Psychological Association (APA) report—Stress in America 2018—found Millennials reported the most stress, followed by generations Z, X, Boomers, then older adults. Figure 16.10 shows the major sources of stress for the youngest members of the workforce—Generation Z (approximately 17–24 years old)—compared to adults overall. On the upside, those in Gen Z are also the most likely to seek professional help for mental health issues.47 The APA has also begun tracking what they call “emerging sources of stress”— personal debt, housing instability, discrimination, and hunger/getting enough to eat (see Figure 16.10). The National Institute for Occupational Safety and Health (NIOSH) defines job stress “as the harmful physical and emotional responses that occur when the requirements of the job do not match the capabilities, resources, or needs of the worker.”48 This definition implies stress can mean different things to different people. It also describes stress as an interaction between person and situation factors, as illustrated in the Organizing Framework you’ve applied throughout this book. It therefore is helpful to think of both factors as potential causes and remedies for stress. But before we explain this relationship in more detail we must recognize that not all stress is bad. Stress—Good and Bad Think of ways stress generates positive emotions, like excitement instead of anxiety. This type of stress can motivate you to prepare and perform during an interview or presentation at school or work. Positive stress adds to the excitement and fun of a first date or causes you to take the game-winning shot. We call stress associated with positive emotions and outcomes eustress (good stress). However, the stress garnering the most attention is the bad kind, the kind epidemic at work and so costly to employees and employers alike. Some studies estimate job stress costs the U.S. economy more than $300 billion per year,49 and to make matters worse, research shows levels of job stress have increased 20 percent since the 1980s! Of the potential sources of work stress, which do you think is the biggest? Your BOSS! Thirty-five percent of respondents in another study reported it was not only the actions of the boss—a lack of fairness, a narcissistic personality—but also his or her THE BIGGER PICTURE This section addresses an outcome associated with almost every change—stress. Change can be desirable or undesirable for you, but either results can be stressful. Realizing this helps you understand the benefits and reduce the costs of stress, which will enable you to be better equipped to effectively manage change as well as other possible outcomes across levels of the Organizing Framework. To help your efforts, we will define stress, and introduce a model to help explore the components of the stress process to improve your personal effectiveness. Explain both the benefits and problems associated with stress. LO 16-4 Organizational Behavior: A Practical, Problem-Solving Approach 659Managing Change and Stress CHAPTER 16 own stress. Much like you learned about emotions, stress too is contagious.50 Perhaps it is no surprise then that: • 76% said job stress negatively impacted their personal relationships. • 66% lost sleep because of it. • 16% have quit their jobs.51 These details make clear stress is inevitable, which means your efforts should be directed at understanding and managing stress, not escaping it altogether. A Model of Job Stress Figure 16.11 presents a comprehensive model of job stress. It originates from psychology and health research and practice and can help you understand and manage your stress more effectively. Potential Stressors The model begins with four potential types of stressors, factors that produce stress. The four types are: 1. Individual level. Job demands are the most common individual-level stressors, but work overload, unclear or conflicting expectations, everyday hassles, perceived lack of control over events occurring in the work environment, and job characteristics can also be problematic.52 One of the heaviest stressors is job loss, which negatively affects FIGURE 16.10 Sources of Stress 77% Additional Personal Sources of Stress for Gen Z % reporting significant sources of stress Gen Z adults Adults overall Emerging Sources of Stress % reporting significant sources of stress Common Stressors Gen Z Adults vs Adults Overall 64% 81% 64% 75% 63% 46%48% 35% 33% 31% 28% 21% 21% 42% 28% 24% 20% 20% 0% 40% 60% 80% 100% B ul ly in g/ In te rp er so na l co nfl ic ts Pe rs on al d eb t G en de r i de nt ity /s ex ua l or ie nt at io n is su es D ru g/ al co ho l u se or a dd ic tio n H un ge r/ ha vi ng en ou gh to e at H ou si ng c on ce rn s H un ge r/ ha vi ng en ou gh to e at D is cr im in at io n H ou si ng c on ce rn s Pe rs on al d eb t Ec on om y H ea lth c on ce rn s M on ey W or k SOURCE: American Psychological Association. “Stress in America: Generation Z.” October, 2018. https://www.apa.org/news/press/releases/stress/2018/stress-gen-z . Organizational Behavior: A Practical, Problem-Solving Approach 660 PART 3 Organizational Processes every aspect of people’s lives—financial, professional, health, and interpersonal rela- tionships. If you lack opportunities for advancement, fear being laid off, or work at a job that is not in your desired career path, you too are likely to be stressed. 2. Group level. As noted above, bad managers create stress for employees by (1) exhibiting inconsistent behaviors, (2) failing to provide support, (3) showing lack of concern, (4) giving inadequate direction, (5) creating a high-productivity environment, and (6) focusing on negatives while ignoring good performance. Sexual harassment experi- ences and bullying represent other group-level stressors. And let’s not forget annoying coworkers, one of the most common and problematic sources of group-level stress.53 3. Organizational level. Organizational culture can also be a stressor. For instance, a high-pressure environment that fuels employee fear about performing up to standard can increase the stress response. Jobs on Wall Street have long been known for such pressure, and the long hours expected from employees generate their own version of stress-inducing organizational cultures in many tech companies.54 FIGURE 16.11 Model of Job Stress Psychological/ Attitudinal • Job satisfaction • Organizational commitment • Job involvement • Self-esteem • Burnout • Emotions • Depression • Tiredness and fatigue Behavioral • Absenteeism • Turnover • Performance • Accidents • Substance abuse • Violence • Tiredness and fatigue Physical stress • Cardiovascular system • Immune system • Musculoskeletal system • Gastrointestinal system • Tiredness and fatigue Cognitive • Poor decision making • Lack of concentration • Forgetfulness • Tiredness and fatigue Individual level Potential stressors Outcomes • Job demands • Work overload • Underload and monotony • Role conflict • Role ambiguity • Job security Extraorganizational • Family • Socioeconomic status • Commuting time • Noise, heat, crowding, and air pollution • Finances/Debt Group level • Group dynamics • Managerial behavior • Harassment Coping strategies • Control • Escape • Symptom management Organizational level • Culture • Structure • Technology • Introduction of change in work conditions Cognitive appraisal • Primary • Secondary Organizational Behavior: A Practical, Problem-Solving Approach 661Managing Change and Stress CHAPTER 16 Can you relate? Demands of work and other arenas of our lives can indeed be overwhelming and negatively impact our performance and well-being. Stokkete/Shutterstock 4. Extra-organizational. Extra-organizational stressors originate outside the organization. For instance, conflicts associated with bal- ancing school with career or family life are stressful. Socioeconomic status—a combina- tion of relative income, education, and occupation—is another extra-organizational stressor. Stress is higher for people with lower socioeconomic status.55 Fatigue v. Tiredness Fatigue is a pro- longed state of physical and mental exhaus- tion that cannot simply be remedied by a good night’s sleep. In fact, a sign of fatigue is its persistence despite sleep, and it is often accompanied by feelings of depression and/or anxiety, confusion, and difficulties concentrat- ing and staying organized, whereas tiredness is typically physical and short-term and is resolved by rest and sleep.56 Too much work and a lack of sleep contribute to both. Americans now work an aver- age of 48 hours per week compared to only 38 in 1976.57 Research estimates that 43 percent of workers are sleep-deprived—don’t get the recommended 7 to 9 hours per night--and it is worse for those who work nights or long and/or irregular shifts. The associated prob- lems are numerous and not limited to your performance and health (depression, obesity, and cardiovascular disease) as shown in Figure 16.11, but also affect your economic well- being and safety:58 • Lost productivity of $1,200 to $3,100 per employee per year. Multiply this times the approximately 50 percent of your company’s employees and the numbers become very large—1,000 employees X $3,100/employee = $3,100,000 in lost productivity in one company! • Three times more likely to have an auto accident, and 5,000 people died due to drowsy driving in 2014. It is estimated that losing just two hours of sleep impairs your judgment and reaction time to the same degree as having three beers.59 Other research translates fatigue into lost productivity costing 10 times more than absenteeism,60 and many times more than presenteeism, which occurs when employees show up but are sick or in no condition to work productively.61 In case you’re not moved by these research findings, let’s make this more real. All employees are tired sometimes, and too many are seemingly tired often or always. Although this obviously affects productivity to varying degrees depending on the person and the job, sometimes fatigue is dangerous if not catastrophic or even deadly. Imagine the potential consequences for a tired and fatigued boat captain, pilot, bus driver, or surgeon! If indi- viduals doing these jobs aren’t overly concerned, certainly their employers, coworkers, customers, and patients are and should be. What can you and your employer do? 1. Staffing. Maintain adequate staffing to cover the workload. This is especially neces- sary for companies that have downsized, because they are likely to simply spread the same amount of work across a smaller number of employees. 2. Scheduling. Consider overtime and commuting time when scheduling workers, to help ensure they have enough time between shifts to obtain sufficient rest and sleep. Be wary of disrupting people’s circadian rhythms with crazy shift-work schedules—nights, days, and back again. Organizational Behavior: A Practical, Problem-Solving Approach 662 PART 3 Organizational Processes 3. Environment. Light, sound, temperature, and other workplace elements can have sub- tle yet meaningful effects on worker fatigue. For too long these elements were taken for granted, but many managers and employers have found employees greatly appreci- ate the ability to make their spaces “their own.” 4. Education. Educate workers to better manage their sleep and the factors that can affect it. Covering sleep-disorder screening under employer-provided insurance may also help, since many people have underlying clinical/health problems that reduce the quantity and quality of sleep.62 Now that we’ve covered the causes of stress on the left side of our Model of Job Stress in Figure 16.11, let’s move to how you process and cope with stress, beginning with cogni- tive appraisals. Cognitive Appraisals You’ve undoubtedly heard the expression: “It’s not what hap- pens to you but the way you respond that matters.” This sentence essentially describes cognitive appraisal, the process by which you evaluate the meaning of events and demands in your life. Put another way, what makes stressors actually stressful is the way you think about them. Two types of appraisals influence whether you experience a particular stressor as stress, and the degree to which it is stressful. 1. Primary appraisals are your perceptions of whether a stressor is irrelevant, positive, or negative. Negative primary appraisals are the most relevant to our cur- rent discussion because they imply we perceive a situation or stressor as harmful, threatening, or challenging. 2. Secondary appraisals are your perceptions of how able you are to cope with a given demand. During secondary appraisals we consider which coping strategies are available and most likely to help resolve the stressful situation. Combined, these appraisals influence our choice of coping strategies and in turn the sub- sequent outcomes. Coping Strategies Coping strategies are specific behaviors and cognitions (thoughts) we use to manage a situation. The appropriateness and thus the success of any particular type of coping depends on the person and situation factors.63 People use a combination of three approaches to cope with stressors and stress (see Figure 16.11). The first, called a control strategy, consists of behaviors and cognitions that directly anticipate or solve problems. A control strategy has a take-charge tone. Examples include talking to your professor or boss about workload if you feel over- whelmed with your responsibilities or confronting someone who is spreading negative rumors. Some research shows health and other benefits from control coping. People are more apt to use control coping when they possess high self-esteem, self-efficacy, and problem-solving skills.64 Escape strategies are those in which you avoid or ignore stressors. These strate- gies can be beneficial if you have no control over the stressors or their causes. If the presi- dent of your company is an unpredictable and unlikable individual but is not your direct supervisor, then it is best not to attempt control coping but instead to avoid stressful encounters with him or her. Symptom management strategies focus on reducing the symptoms of stress and include relaxation, meditation, medication, and exercise. A vacation can be a good way to reduce the symptoms of stress. The author of this book finds walking or playing with his dog beneficial. Stress Outcomes Stress has psychological, attitudinal, behavioral, cognitive, and physical health outcomes. Besides your own personal experiences, a large body of research supports the negative effects of perceived stress on many aspects of our lives.65 Workplace Organizational Behavior: A Practical, Problem-Solving Approach 663Managing Change and Stress CHAPTER 16 stress is associated with undesirable effects on many outcomes in the Organizing Frame- work for Understanding and Applying OB: • Decreases in job satisfaction, organizational commitment, organizational citizen- ship behavior, positive emotions, and performance. • Increases in emotional exhaustion, burnout, absenteeism, and turnover.66 The undesirable effects extend beyond these, however. Stress is linked to many coun- terproductive behaviors, such as yelling, verbal abuse, and violence toward others. It is associated with frequent drinking and the taking of illicit drugs.67 These stress outcomes are costly to individuals and organizations alike. Moreover, abundant research shows stress also negatively affects our physical, psychological, and physical health in almost every way imaginable.68 We think it is stressful to think about all these problems! We close this section with some advice on how to deal with a particularly difficult stressor—underperformance and failure. Confronting and Overcoming Failures We all have experiences at school and work wherein we underperform, whether doing horribly on a test or presentation, providing an unclear answer to our boss, blowing it with a customer, making poor job choices, or losing our temper with a classmate or coworker. Some have little consequence (low score on a single homework assignment) while others can be very problematic (taking a bad job or losing a key customer). Since failure is universal, it is helpful to consider how to deal with such inevitable experiences, how to recover from them, and how to use them as agents of change for the future. First, when you consider a particular experience a failure, it is important not to hide from it. The surest way of not failing is not trying. Where would that mindset get you, or the rest of the human race for that matter? Of course, no one is going to say to celebrate failure, but the more typical and damaging reaction is to hide it from yourself and others. One career expert explains it this way: it is every employee’s responsibility to anticipate and avoid mistakes when possible, but also to make things go right when they do occur.69 Experts recommend reflecting on the experience, then acting. For instance: Talk About It. That’s right, instead of avoiding it, talk to your colleagues and/or boss to gain their insights and learn. Instead of ranting or being defensive, ask: “I had a bad experience, can you help me with this?” The goal is to get another’s perspective, and at the same time show your vulnerability, willingness to own your mistakes, and determination to learn and grow. Moreover, research suggests such behaviors can develop closer, more productive relationships, especially when compared to leaders and other employees who present themselves as perfect or flawless, which tends to be perceived as inauthentic.70 Fail Productively. Many failures are due to complex interactions between people and situations, in other words OB. And many times, it is the complexity and not your fault. Neither you nor anyone else can possibly control the outcomes all of the time but recognizing this and being vigilant can help improve processes, your approach, and make you more effective over time. For instance, clinicians in emergency departments and critical care units have extensive training and skills and use processes to guide them, but sometimes bad things still happen to patients. Productive failure can also occur when doing something new and when no one has previous experience or knowledge on how best to succeed, such as a new product, new technology, or a novel process. Failure will likely be common. This doesn’t mean you shouldn’t try, as this is the heart of change, innovation, and growth.71 Organizational Behavior: A Practical, Problem-Solving Approach 664 PART 3 Organizational Processes Choose Your Audience. Of course, it not only matters how you frame your failure, but who you share it with. Early in your career or a particular job it is admittedly more difficult, but the important takeaway is to find someone you trust, someone who will appreciate your situation and experience, and genuinely help you to change and grow. Consider sharing experiences at lunch with coworkers, or perhaps at happy hour with friends not in your company or industry. Or this could be an especially good time and reason to get a mentor.72 Read and heed the advice provided in the following Applying OB box to learn how to address interview questions aimed at failure. Now that you’ve learned a great deal of knowledge about change and stress, let’s con- clude the chapter with some useful and practical applications. Applying OB This is one of the most common behavioral interview questions. We’re asked those questions because pro- spective employers want to know how you’ll respond when things go sideways when you work for them. They ask such questions knowing full well we all make mistakes, things go wrong, we fail. Sometimes it is entirely our fault, sometimes it is not, but most always we are expected to do something about it and do our best to improve in the future. One career expert describes failures in this way: it is every employee’s responsibility to anticipate and avoid mis- takes when possible, but also to make things right when they do occur.73 When asked such a question, it is wise to think of and share a past challenge, rather than one that is pending or just happened. Why? Because you can bet- ter show and explain the 1. Context and what happened. 2. What you did in response including who you may have consulted. 3. How it helped you develop. 4. Why you are unlikely to make a similar mistake in the future.74 This is about change and development. Put differently, look at and communicate failures in terms of opportu- nities for change and growth. Not only will this make you more successful in interviews, but it will help you cope with what can be painful experiences. “Tell me about a time when you . . . experienced failure, or when things didn’t work out.” CAREER READINESS Organizational Behavior: A Practical, Problem-Solving Approach THE BIGGER PICTURE Since organizational change has implications for nearly every element of the Organizing Framework, it is an excellent opportunity to consolidate and apply the knowledge gained throughout the book. OB provides practical tools to make you a more effective manager of change. Specifically, we’ll describe how to apply the systems model you learned about earlier for strategic planning and diagnosis, and provide advice on how to overcome resis- tance to change and manage stress. We conclude with some practical tips for successful change management. 16.5 EFFECTIVE CHANGE AND STRESS MANAGEMENT Applying the Systems Model of Change—Strategic Planning and Diagnosis There are two ways to apply the systems model of change. The first is as an aid during the strategic planning process (why change?), and the second is to help identify the necessary targets of change (change what and how?). Together, these uses can assist leaders and managers in formulating and implementing effective organizational change (see Figure 16.6). Use the following Problem-Solving Application to apply the systems model of change for diagnosing problems and identifying the targets for change. Use OB knowledge and tools to manage change and stress. LO 16-5 HBO + TNT + TBS + CNN + ETC = NEW AT&T75 There are more than 26 characters in the alphabet soup created in the merger between AT&T and Time Warner, given the latter included HBO, TNT, TBS, CNN, Warner Bros. movie studio, and other assets. AT&T finally prevailed in its efforts to acquire Time Warner for over $85 billion, which required it to win a suit filed by the Justice Department seeking to block the merger. AT&T argued that such a marriage would not be anti-competitive and limit choice for consumers, but by combining the companies it was necessary to be competitive in a radically different landscape that blurs the previous lines between content and distribution. This merger says a lot about AT&T’s strategy for dealing with these chal- lenges and how it plans to grow in the future. History and Additional Motives for the Marriage Telecom companies have historically offered cable, telephone, and mobile services, however now, AT&T not only needs to compete with Verizon and T-Mobile/Sprint, but also the likes of Netflix, Hulu, Amazon, Google, Facebook, and Apple, many of whom create content and provide distri- bution. The future is now, and it requires telecom companies to combat the millions of people who have cut the cable cord while at the same time attracting the millions that sign up for streaming services. Some experts claim these changes are essen- tial to the survival of a company like AT&T, and as a  result the company is expected to be more Problem-Solving Application 665Managing Change and Stress CHAPTER 16 Organizational Behavior: A Practical, Problem-Solving Approach 666 PART 3 Organizational Processes Apply the 3-Step Problem-Solving Approach Step 1: Define the problems facing John Stankey and the new merged AT&T-Time Warner company. Step 2: Identify the potential causes. Step 3: Make your recommendations. attractive to investors and consumers. Moreover, if AT&T’s larger portfolio attracts more eyeballs it will also attract more advertisers and boost revenues and profits further still. What Is Required to Realize the Value? The merger expands the products and customer bases of all of the brands involved in the merger, but this complexity also requires masterful change leader- ship. Many of these assets, notably HBO, have long and very successful histories. The challenge will be minimizing conflict and fostering collaboration and cohesiveness among employees (nearly 270,000 in the combined company), processes (decision making, HR, technology, and communication), and products (streaming, content, technology, mobile, and cable). This therefore represents an enormous leadership challenge. Leading the Change Efforts John Stankey, an AT&T executive who was immediately put in charge of Warner Media, put it simply: “If you don’t make a change, you’re not going to get any change in the product.” In this spirit he quickly made a number of senior leadership moves. He brought in Robert Greenblatt who had a long successful career at NBC and Showtime, and effectively offered him his dream opportunity, as he will now oversee HBO, considered the crown jewel of the acquisition, along with Warner’s planned streaming service. Also joining the team is Jeff Zucker (formerly chief at CNN) who will not only oversee larger business than he did at his previous job, but also lead a port- folio AT&T sees as especially important to its strat- egy and future. However, the shakeup also includes departures, such as Richard Plepler who worked at HBO for more than two decades and has been its chief executive and face of the company for the past several years, and David Levy the president of Turner Broadcasting. Neither was fired but both left presumably because there were clear signals their roles would be much smaller in the new company, which would mean their previous considerable autonomy and influence would be diminished. Potential Obstacles With regulators seemingly out of the way, the new and existing leadership has many things to tend to. For instance, Mr. Stankey’s leadership style has been questioned. Critics say he is quite opaque in communicating his thoughts and plans, which has been quite frustrating to many employees. And given the enormous task ahead, the skills of many leaders will be put to the test. Among the many challenges will be to reduce con- flict, foster collaboration, and integrate cultures. Competitors certainly won’t relent and are likely to respond with their own efforts, such as Apple’s planned streaming service, alliances between con- tent providers and telcos like Netflix and T-Mobile, and Comcast’s acquisition of many of 20th Century Fox’s assets. Reputations of the brands and their associated leaders will undoubtedly both help and hurt in the merger process, as will employee resis- tance. Employees that are dissatisfied with their situ- ation in the new company may resist the changes or even quit, while those who are happy and satisfied may see new opportunities and commit. Assume you are Mr. Stankey. Apply the 3-Step Problem-Solving Approach to identify the problems, causes, and potential solutions included In the case. How to Overcome Resistance to Change We’ve noted resistance is a form of feedback and managers need to understand why it is occurring before trying to overcome it. They can do this by considering the extent to which the three sources of resistance shown in Figure 16.9 are contributing to the problem. Organizational Behavior: A Practical, Problem-Solving Approach 667Managing Change and Stress CHAPTER 16 Respond to Employee Characteristics Employees are more likely to resist change when they perceive its personal costs outweigh the benefits. If this is the case, managers are advised to: 1. Provide employees with as much information as possible about the change. 2. Inform employees about the reasons for the change. 3. Conduct meetings to address employees’ questions about the change. 4. Provide employees the opportunity to discuss how the proposed change might affect them. Improve Change Agent–Employee Relationships The four recommendations described will also improve the agent–recipient relationship by enhancing the level of trust between the parties. When Jim Weber took over as CEO of Brooks Sports, the maker of the running shoes, the company was languishing. In its long history, the company endured two bankruptcies and multiple owners. He desperately needed to productively alter relationships with both employees and customers. At the time he took the helm the company had expanded from a specialty running shoe company to one also selling cleats, tennis shoes, and cross-trainers at a variety of price points, but often cheap. He scrapped everything except its one profitable and eternal line—high-end running shoes developed for elite runners. Since these changes the company has experienced consistent and phenomenal growth for many years. Although it still pales in comparison to the largest players in the market—Nike, Adi- das, Asics, and New Balance—it is number one with its target. Specifically, it is the top brand in specialty retailers devoted to running, first or second most popular in the Boston Marathon over the past few years, and Olympic runners wore more Brooks’ shoes than any other, including Nike.76 To achieve this, Mr. Weber has had to convince employees such changes were in their best interest—the future depended on it. The R&D people had to be pushed to apply their talents to different types of runners, rather than simply creating the best materials and products. This meant everyone at the company had to engage customers and market in Jim Weber had many challenges to overcome when he became CEO of Brooks. He chose to focus on shoes for elite runners, which required enormous changes for many employees. His efforts have paid off, as the company now leads in this category. (Left): Courtesy of Brooks Sports, Inc.; (right): Miet Astlen/Shutterstock Organizational Behavior: A Practical, Problem-Solving Approach 668 PART 3 Organizational Processes ways they hadn’t before. And now, to continue the growth, Weber and Brooks’ employees must convince non-elite runners of the value in shelling out premium prices for their shoes. Appeal to more than the running nerds, but the much larger running herds and penetrate the athleisure market, including the tens of millions of non-elite but often seri- ous runners.77 Implement Organizational Processes and Practices For starters, managers should not assume people are consciously resisting change. Second, using the Organizing Framework can be very helpful. Resistance to organizational changes is often caused by some obstacle in the work environment, such as job design or performance management practices that make the change difficult or counter to an employee’s self-interests. If employees, for example, are still rewarded for doing their jobs the old way, then it is unre- alistic or even foolish to expect them to do their jobs differently. Soliciting and using feedback about the changes can be invaluable to achieving desired change outcomes, and change agents should not be afraid to modify the targeted elements of change or their approach toward change if people are resisting for valid reasons. Take a Contingency Approach to Overcoming Resistance As you have learned throughout this book, effective managers apply the knowledge and tools that match the requirements of the situation (one size does not fit all). A similar contingency approach is recommended for avoiding or overcoming resistance to change. You and other change agents are likely to be more successful if you follow the six strategies: 1. Inspire. Do the best you can to describe a vivid and compelling vision of what the changed organization will look like, and equally important, what role you see those who report to you playing and the value they can provide. 2. Recognize progress, not just outcomes. Many if not most organizational changes occur over long periods of time, which means changes will include multiple steps along the way. Observe and recognize people for their efforts, and don’t wait for ulti- mate performance outcomes. This is similar to Kotter’s advice from earlier in the chapter to create and celebrate small wins. Don’t simply wait for performance metrics at the end of the quarter, the year, or until the merger is close and the cultures or sys- tems integrated. 3. Expect mistakes. Expect them, tell your people you expect them, and don’t panic when they happen. Treat them as learning opportunities, which means you need to analyze and identify what to do and what not to do in the future. 4. Model, measure, and reward collaboration. A common sign of resistance is a lack of collaboration, and one way to overcome this is to apply what you learned in Chapter 6 to make collaboration part of the performance expectations. Communicate, model, measure, and reward collaboration. 5. Positivity. As you learned previously, we tend pay attention to negative events, experi- ences, and emotions more than positive ones, and this is especially common in the context of organizational change. It therefore can be an excellent and productive opportunity to exercise mindfulness, and for you and employees to identify and reflect on the positive elements of the change. 6. Goals and time. Just as you learned in Chapter 6, setting SMART goals and being sure to include a time element will help focus people’s efforts and actually change. It is bet- ter to set a deadline and need to change it, rather than not setting one at all.78 As you can easily see, understanding and managing resistance can indeed reduce stress indirectly. But now let’s look at how to manage stress directly. Organizational Behavior: A Practical, Problem-Solving Approach 669Managing Change and Stress CHAPTER 16 How to Manage Stress Because stress influences many outcomes across levels of the Organizing Framework, it is not surprising that organizations are increasingly implementing a variety of stress- reduction programs to help employees cope. Let’s explore some that may benefit you, other employees, and your employer. Stress-Reduction It’s best if both you and your employer make efforts to reduce stress. Some common, widely applicable, and effective ones are: • Provide and encourage employees to utilize stress-management and wellness resources—mediation and yoga. • Take regular breaks, we all need them, and volumes of research show productivity increases. • Exercise, socialize, hobbies, and play. Get employees to regularly do other things. Walk the talk and lead by example. If managers actively tend to their stress and follow the above recommendations, then employees are more likely to do the same.79 But what has proven to be one of the most effective stress-reduction techniques is cognitive restructuring.80 The ABCDEs of Cognitive Restructuring Many positive OB tools can help you avoid and reduce stress, such as fostering positive emotions, using mindfulness, flourish- ing, and developing a positive organizational climate. In addition, the following five-step process of cognitive restructuring can help you to stop thinking pessimistically about an event or problem. It’s called the ABCDEs:81 A—Name the event or problem. For example: My roommate is going to move out, and I can’t afford to pay the rent by myself. B—List your beliefs about the event or problem. I don’t have any prospects for a new roommate, and I may have to move back home and quit school. I could ask my parents for money, but they really can’t afford to pay my rent or I could move to a lower-priced single apartment in a bad part of town. C—Identify the consequences of your beliefs. I’m going to move back home for spring semester and will return in the fall. D—Formulate a counterargument to your initial thoughts and beliefs. Pessimistic thoughts are generally overreactions, so the first step is to correct inaccurate or distorted thoughts. I have not reviewed my expenses closely, and I may be able to afford the apart- ment. Even if I can’t afford the apartment right now, I could get a part-time job to cover the additional expenses or I could advertise on Craigslist or in the school newspaper for a new roommate. I don’t have to accept a bad roommate, but the worst-case scenario is I will have to cover the added expenses for one semester. E—Describe how energized and empowered you feel at the moment. I’m motivated to find a new roommate and/or get a part-time job. I have taken care of myself throughout college and there is no reason I can’t continue to resolve this short-term problem. Organizational Behavior: A Practical, Problem-Solving Approach 670 PART 3 Organizational Processes Research and practice show this technique works well over time. The key is to stay with your ABCDEs and not to expect instantaneous results. Before moving on, read the Applying OB box for another means for dealing with stress. Pulling It All Together—Change Management Tips for Managers We conclude the chapter and book by asking you to return to the Organizing Frame- work. You realize now how both person and situation inputs can have a major impact on what needs to change, how it needs to change, and the ultimate success of any change initiatives. And you know process always matters, such that employees react more posi- tively to changes that are personally undesirable, even job cuts, when the process by which they are formulated and implemented is perceived as fair. To be clear, employees may still be unhappy, but not as unhappy as if changes were implemented in ways they perceived as unfair. Applying OB In chapters 3 and 7 you learned about emotions and how to use and manage them at work. One way to deal with stress is to blow off steam, or RANT! Releas- ing your emotions and associated energy can be an effective means for relieving stress. To clarify, the fol- lowing are ways to productively express your frustra- tions without losing control and allowing your emotions to cause additional problems. Here’s how: 1. Never Rant via E-mail. If you’re even the slight- est bit concerned about how it will be per- ceived, then don’t send it. At the very least, leave it until the next day, review it again, tone it down, and/or have somebody else review it first. If you’re still concerned skip the e-mail and find another, more productive path. 2. Not the Target, but Instead Your Friend. Ranting isn’t ranting unless someone is listening. Although your boss or coworker may be the source of your disgust, frustration, or need to rant, you’ll be better served to share your emotionally charged thoughts with a friend, preferably not one who also works at your company. An expert provides a helpful script to use when asking someone to help: “I need to get something off my chest. You don’t have to actually listen. Please wait until I’m done and agree with every- thing I say.” This may help satisfy your need to be heard and agreed with without causing damage to relationships at work. 3. Back Stage, Not on Stage. It is wise to avoid ranting in public. The potential for your rant to come back to haunt you Is high, especially because of the possibility for someone in the crowd to record it. 4. Purging, Not Problem Solving. Ranting is an emotional release that reduces stress. It’s for you. Don’t rant expecting to solve problems with somebody else. Emotions often do play a role in problem solving, but ranting is different. How Do You Spell Stress Relief? R-A-N-T!82 Organizational Behavior: A Practical, Problem-Solving Approach 671Managing Change and Stress CHAPTER 16 Effective managers of change therefore carefully consider the relevant inputs and pro- cesses for any given change effort, because these are critical determinants of outcomes in the Organizing Framework. Moreover, the outcomes in the Organizing Framework likely overlap with the goals of a given change, such as employee satisfaction, team performance, and organizational reputation. You therefore may want to start with the end in mind, as suggested in the following Applying OB box that details five tips to successful change management. Let’s now pull it altogether and conclude not only our exploration of change and stress, but also the larger journey in OB, with some practical tips. Applying OB We can safely predict your future is going to include change and related stress. While accepting change is neither simple nor easy, here are our best tips to help stack the deck in your favor and improve your chances for success. While some tips specifically address the manager’s role, all will help you at any level of the organization. 1. Set realistic change goals. Leaders of change often think big and bold. This is fine so long as the objectives are realistic and attainable for the situa- tion and organization. As you learned previously, SMART goals are challenging but attainable. 2. Ensure senior leader involvement and commit- ment. CEOs and other senior leaders must be visibly involved in change initiatives. They cannot simply sit in their ivory tower and dictate change. They need to be planners, cheerleaders, and doers. This kind of deep involvement will help shape employee perceptions and beliefs that lead- ers are serious about the changes and they care about employees 3. Walk the talk. Change can be difficult, even scary, for many employees. It is beneficial if managers and leaders change first. This means when employees are asked to make sacrifices (give pay concessions, work overtime, take on additional responsibilities), leaders and managers make them first and in-kind. Leaders and managers of change need to make their actions visible and make them count. 4. Be clear on “why.” Everyone wants to know why the changes are happening. What are the motives, what will be the personal impact, and what role will individuals play in shaping the outcomes? Your organization must avoid the situation in which “the lower you go, the less you know.” Everyone responsible for and affected by the change must clearly understand why it is happening. Under- standing is fundamental to building commitment to change and reducing resistance. Communicate. 5. Align performance management practices. It is difficult, even foolish, to expect your salespeople to give full attention to selling your company’s new product if the bulk of their compensation is still focused on the old product. It is necessary not only to align goals, but to also align recognition and other rewards with the change-related goals. Five Tips for Effective Change83 Organizational Behavior: A Practical, Problem-Solving Approach 672 PART 3 Organizational Processes Takeaways for Me Here are five practical implications for you. 1. Learn about and be mindful of your own attitudes toward change. If you have a negative approach, you are more likely to resist change and expect negative experiences and outcomes. A more positive attitude, in contrast, means you’re more likely to frame change as a challenge or an opportunity. 2. Pay attention to and utilize your knowledge of the internal and external forces of change. This will enable you to understand, manage, and perform within the con- text of change. 3. Change is complex. Using your knowledge of the types of change as well as the differ- ent models can help you understand and perform better during the many changes you will undoubtedly face in your career. 4. Resistance is a given. Apply your knowledge from Figure 16.9 to understand the different causes of resistance and use this to reduce your resistance as well as that of others. 5. Understand and apply your knowledge of occupational stress and coping (see Figure 16.11). Cognitive restructuring is an especially effective tool—learn it and use it. This will greatly improve your performance and satisfaction at work and in life. Takeaways for Managers There are seven practical implications for managers. 1. Taking a more strategic approach to change will help you get ahead in your professional life. To do this, consider both internal and external forces for change. 2. Consider the complexity, cost, and perceived threat associated with the different types of change—adaptive, innovative, and radical (see Figure 16.4). 3. Not all changes are alike, which means you’ll need different tools to be effective. The models outlined in this chapter should help you better understand and manage the various changes you’ll be confronted with in your professional life. 4. Utilize the systems model (see Figure 16.6) for both planning and diagnosing change. When you are planning change, it will help ensure you consider important elements you might not otherwise. THE BIGGER PICTURE We close the chapter and book with practical applications related to change, stress, and the management of each. As with the previous chapters, use your new knowledge and tools to improve your effectiveness as both an employee and manager. 16.6 MAKING THE CONNECTION: HOW CAN I APPLY OB AND SHOW WHAT I’VE LEARNED? Describe the implications of managing stress and change for you and managers. LO 16-6 Organizational Behavior: A Practical, Problem-Solving Approach 673Managing Change and Stress CHAPTER 16 5. Employee resistance will make or break your effectiveness as a manager and viewing resis- tance as a dynamic process with several different sources is a good starting point. Then, utilize the knowledge within this chapter to help reduce and overcome resistance. 6. Stress affects your performance and that of those you manage. Be aware of your stress and manage it effectively in order to better manage others. 7. The final Applying OB box provides five tips for managing change effectively--learn them and use them! Parting Words for Change and OB Whether you work for someone else or run your own business, your ability to effectively manage change will benefit you throughout your career. It is a challenge, but the rewards are enormous if you can do it well. The knowledge and tools we’ve provided here can give you a competitive edge on other employees and managers. And don’t forget that managing change is about doing. Perhaps Charlie Strong, cur- rently the head football coach for the University of South Florida, put it best in 2014 when he was hired at the University of Texas and outlined his expectations for players, particularly the team’s leaders: “They can lead the new culture or be run over by it. . . . I don’t want to talk about things. I’d rather do things. We just talked. Now it’s time to do.”84 We wrote this book to help you perform better at work, at school, and in life more generally. You’ve gained an enormous amount of knowledge throughout this book and course, and you’ve had many opportunities to apply the knowledge. We encourage you to continue learning and applying your knowledge, because it is the application of what you know that will help you get ahead. We hope you enjoyed your journey and wish you the very best both professionally and personally. Organizational Behavior: A Practical, Problem-Solving Approach 674 PART 3 Organizational Processes You learned change and stress will be two com- panions throughout your professional life. You learned how you can apply OB to help recognize and respond appropriately to drivers of change and to manage both the positive and negative aspects of stress for greater effectiveness. Rein- force and consolidate your learning with the Key Points and Organizing Framework. Then chal- lenge your mastery of the material by completing the Problem-Solving Application Case and Legal/ Ethical Challenge. Key Points for Understanding Chapter 16 You learned the following key points. 16.1 FORCES FOR CHANGE • Forces for change can be categorized as external and internal. • External forces are demographic, technologi- cal, shareholder and market, social, political, and regulatory. • Internal forces often pertain to human resources and managerial behavior and decisions. 16.2 TYPES AND MODELS OF CHANGE • Three general types of change—adaptive, innovative, and radically innovative—differ in complexity, cost, and uncertainty. • Lewin’s change model proposes three stages: unfreezing, changing, and refreezing. • A systems model of change includes inputs, strategic plans, target elements of change, and outputs. • Kotter’s eight-step model of change requires organizations to move through each step sequentially. • An organizational development (OD) approach to change consists of diagnosing, intervening, evaluating, and feeding the evaluation back to assess change effectiveness. 16.3 UNDERSTANDING RESIS- TANCE TO CHANGE • Resistance to change is any thought, emotion, or behavior that does not align with actual or potential changes to existing routines. • Dynamic perspectives of resistance describe it as an interplay of change recipient charac- teristics, change agent characteristics, and the relationship between the two. 16.4 THE GOOD AND THE BAD OF STRESS • Job stress contains both harmful physical and emotional elements. • Stressors can occur at multiple levels— individual, group, organizational, and extra- organizational. • Primary and secondary are the two common forms of cognitive appraisal. • Common coping strategies are control, escape, and symptom management. 16.5 EFFECTIVE CHANGE AND STRESS MANAGEMENT • The systems model of change provides multi- ple targets for effective change management. • Education and communication, involvement, negotiation, and coercion are among the many means for overcoming resistance to change. • Stress Is managed most effectively when employers and employees take action. 16.6 HOW CAN I APPLY OB AND SHOW WHAT I’VE LEARNED? • Your attitudes towards change can make or break you as an employee and manager. • Identifying the factors that influence resistance can help you as an employee and manager. • Manage your stress and remember It is contagious. What Did I Learn? Organizational Behavior: A Practical, Problem-Solving Approach 675Managing Change and Stress CHAPTER 16 The Organizing Framework for Chapter 16 As shown in Figure 16.12, you learned that the process of leading and managing change and stress at the organizational level often includes a range of inputs, pro- cesses, and outcomes across all levels of the organization. FIGURE 16.12 Organizing Framework for Understanding and Applying OB ©2021 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors. INPUTS PROCESSES OUTCOMES Person Factors • Personality • Demographics • Skills and abilities • Values • Needs • Ethics • Stressors Situation Factors • Relationship quality • Leadership • Human resource problems/ prospects • Managerial behavior/deci- sions • Culture (organizational) • Technology • Market forces • Social, political, and regula- tory pressures • Stressors • Organizational mission and vision • Strategy Individual Level • Emotions • Cognitive appraisals • Coping strategies • Perceptions • Motivation • Trust • Communication Group/Team Level • Group/team dynamics • Conflict and negotiation • Decision making • Power, influence, and politics • Performance management • Leadership • Trust Organizational Level • Human resource policies and practices • Culture • Organizational design and effectiveness • Leading and managing change and stress • Trust Individual Level • Task performance • Work attitudes • Well-being • Citizenship behavior/counter- productive behavior • Resistance to change • Turnover • Career outcomes • Stress (physical and emo- tional) • Accidents Group/Team Level • Group/team performance • Group satisfaction • Group cohesion and conflict • Resistance to change Organizational Level • Survival • Accounting/financial perfor- mance • Organizational performance • Customer satisfaction • Innovation • Reputation Organizational Behavior: A Practical, Problem-Solving Approach 676 PART 3 Organizational Processes Toys-R-Us has long been known as a marquee toy retailer with giant 40,000-square-foot stores and nearly every item desired or imaginable for children (and some adults). A large percentage of Americans, as well as customers in international markets, can recall visiting a Toys-R-Us store. Sadly however, even icons fail, especially when confronted with nearly $5 billion of debt, fierce online competition from Amazon and Walmart, changing cus- tomer preferences (video games instead of conven- tional toys), and technology (e-commerce). Not even 3 billion dollars in annual sales could surmount these challenges. SEALED FATE Some argue the company’s fate was sealed back in 2005 when Bain Capital took the company private and buried it in debt to do so. Toys R Us never shed this burden.85 The Toys R Us scenario is a familiar one. In the years prior to the great recession (2006–2008), private equity firms (PE), like Bain and KKR, went shopping for retailers. They took the companies private by borrowing money for the purchase and planned to achieve high returns by making them more efficient, selling off parts, or both, and in a period of a few years take them public again. (Note: PE firms generally collect large fees associated with taking the companies public.) However, the recession eroded the value of the retailer’s real estate and at the same time e-commerce exploded onto the market. Online sales have more than quadrupled since 2007. For perspective, Neiman Marcus, another PE-, debt-plagued retailer reaped 34 percent of total sales online in 2017. These same factors also spurred the demise of other well-known brands, like Gymboree, Payless Shoes, and Sports Authority.86 To compete online requires massive investments in technology and support, people, all while selling prod- ucts at lower margins. In summary, competition is up, debt is up, expenses for creating an online channel go up, and profits go down–a tough scenario for any retailer.87 Many have responded by only investing in safe bets and cutting products and people, which in turn has limited merchandise and degraded service. For its part, Toys R Us tried bankruptcy in Septem- ber 2017 to salvage the company but doing this before the holiday shopping season (when it collects a large percentage of annual revenue) hurt more than helped. Company leadership and other employees were in survival mode instead of executing and boost- ing sales when it needed them most. The poor timing was made even worse as it scared customers away, as they were concerned that toys couldn’t be returned, and gift cards redeemed.88 COMPETITORS POUNCED Knowing Toys R Us was on the ropes, Walmart, Target, and Amazon cut prices during the holiday season and took an ever greater share of sales. For instance, com- petitors sold some toys at a loss in order to get the business. This practice isn’t sustainable, normally, but each of these large competitors sells many, many other products besides toys. As such, they could com- pensate with sales from other products while Toys R Us couldn’t. It sells only toys.89 Concerns spread and a domino effect ensued. Many toy suppliers delayed shipments fearing they might not be paid if the company went bankrupt, and creditors also tightened terms making things even worse. WHERE NOW? All is not lost. Yes, the company did technically go away–over 700 U.S. stores closed and nearly 33,000 employees lost their jobs, but a new company, Tru Kids Brands, has emerged in 2019. Investors bought Toys R Us trademarks, private toy and baby brands, its famous PROBLEM-SOLVING APPLICATION CASE Toys R Amazon, Walmart, and Others, but Not Us Toys R Us is yet another iconic retailer to suffer due to changes in technology, customer preferences, and new competitors. Daysi Calavia-Robertson/Newsday/Getty Images Organizational Behavior: A Practical, Problem-Solving Approach 677Managing Change and Stress CHAPTER 16 mascot (Geoffrey the Giraffe), Babies R Us, and other assets. The new CEO, Richard Barry, formerly the chief marketing officer of Toys R Us, hired many of the for- mer company’s leaders but none of its stores and associated employees.90 Many industry experts note that although the major competitors are indeed formidable, the demise of Toys R Us leaves a notable gap in the market. Many people still need or at least desire to shop in an actual toy store, and this is especially true during the holidays. It’s nostalgic.91 NEW TEAM . . . NEW APPROACH Time will tell, but at the time this case was written it is clear it will involve new employees, new stores, and a new strategy to go along with the new name. Assume you are the new CEO Richard Barry and apply the 3-Step Problem-Solving Approach to chart a path forward for Tru Kids Brands. APPLY THE 3-STEP PROBLEM- SOLVING APPROACH TO OB STEP 1: Define the problem. A. Look first at the Outcomes box of the Organizing Framework in Figure 16.12 to help identify the important problem(s) in this case. Remember, a problem is a gap between a desired and a cur- rent state. State your problem as a gap and be sure to consider problems at all three levels. If more than one desired outcome is not being accomplished, decide which one is most impor- tant and focus on it for steps 2 and 3. B. Cases have key players, and problems are gen- erally viewed from a player’s perspective. You need to determine from whose perspective— employee, manager, team, or the organization— you’re defining the problem. As in other cases, whether you choose the individual or organiza- tional level in this case can make a difference. In this case you’re asked to assume the role of new CEO Richard Barry. C. Use details in the case to determine the key problem. Don’t assume, infer, or create problems that are not explicitly included in the case itself. Only use what Is provided in the case. D. To refine your choice, ask yourself, why is this a problem? Explaining why helps refine your think- ing. Focus on topics in the current chapter, because we generally select cases that illustrate concepts in the current chapter. STEP 2: Identify causes. Using material from this chapter and summarized in the Organizing Framework, identify what are the causes of the problem you identified in Step 1. Remem- ber, causes tend to appear in either the Inputs or Processes boxes. A. Start by looking at Figure 16.12 to identify which person factors, if any, are most likely causes of the defined problem. For each cause explain why or how It causes the problem. Asking why multiple times is more likely to lead you to root causes of the problem. In this case, for instance, how do competitors factor in to your decisions? What about the value of the brand? Expertise of leadership? B. Follow the same process for the situation fac- tors. For each ask yourself, why is this a cause? By following the process of asking why multiple times, you are likely to arrive at a more complete and accurate list of causes. Again, look to the Organizing Framework for guidance. C. Now consider the Processes box shown in Figure 16.12. Consider concepts listed at all three levels. For any concept that might be a cause, ask yourself, why is this a cause? Again, do this for several iterations to arrive at root causes. D. To check the accuracy or appropriateness of the causes, be sure to map them onto the defined problem and confirm the link or cause and effect connection. STEP 3: Recommend solutions. Make your recommendations for solving the problem. Consider whether you want to resolve it, solve it, or dissolve it (see Section 1.5). Which recommendation is desirable and feasible? A. Given the causes identified in Step 2, what are your best recommendations? Use material in the current chapter that best suits the cause. Remember to consider the OB in Action and Applying OB boxes, because these contain insights into what others have done. B. Be sure to consider the Organizing Framework— both person and situation factors, as well as processes at different levels. C. Create an action plan for implementing your recommendations and be sure your recommen- dations map onto the causes and resolve the problem. Organizational Behavior: A Practical, Problem-Solving Approach 678 PART 3 Organizational Processes LEGAL/ETHICAL CHALLENGE Can Employers Ethically Force You to Change and Be Healthy? Healthy employees provide many benefits for employ- ers: improved employee engagement and perfor- mance, attracting and retaining talent, job satisfaction, thriving culture and morale, and reduced health care costs. In fact, many leaders now view employee wellness as a fundamental part of business strategy and competitiveness.92 it therefore is no surprise employers are using both carrots (incentives) and sticks (penalties) to motivate healthier employee life- styles. These efforts have raised legal and ethical con- siderations regarding the means used to gain employee compliance. Carrots and Sticks Many programs offer incentives for employee partici- pation. The most common is reduced health insurance premiums if employees participate in health screening, stress reduction, nutrition counseling, weight loss, smoking cessation, exercise, or other employer- sponsored programs. Many more employers (some estimate 60 percent) are penalizing employees for not meeting health standards or participating in wellness programs. Common penalties are increased health care premiums or surcharges for smokers or for those who are obese, and in some instances health expenses are not reimbursed if employees do not adopt a healthier lifestyle. At the extreme, some employers are linking employment offers to health behaviors, refus- ing to hire smokers or insisting current smokers must quit to remain employed.93 Truly Voluntary or Actually Coercive? Employers often argue wellness and the associated carrots and sticks benefit all stakeholders. Opponents, however, are concerned the carrot approaches are actually coercive rather than voluntary.94 The incentives and expectations may be so strong as to induce employees to engage in activities, such as strenuous exercise, that are unhealthy for those who are out of shape or have underlying conditions.95 Others worry that stick programs and their associated penalties may be a form of harassment, and employees who choose not to participate may be stigmatized and in effect penalized. What about otherwise healthy employees, for whom participation in any type of program may not actually matter? Some critics see employer-sponsored wellness as a “slippery slope” that may lead to employers’ govern- ing other nonwork activity, such as eating fast food or participating in extreme sports.96 Particular concerns arise when employers set consequences tied to out- comes and not simply to participation. Of course, measurable outcomes make sense, but what about those who try but don’t meet the desired standard? Is it fair to deny them discounts or penalize them with higher premiums? Although Equal Employment Opportunity Commis- sion (EEOC) policy largely governs the legal parame- ters, the reality is employers will continue to use carrots and sticks to foster employee health and wellness.97 Putting the EEOC aside, can employers fairly provide consequences (incentives or penalties) for employees who do not comply with their wellness standards, including participation in wellness programs? What Is Your Position? 1. No. Employers should not provide positive or negative consequences for employees’ health status. Justify. 2. Yes. Employers can provide incentives but not penalties. Justify. 3. Yes. Employers can provide both incentives and penalties. Justify. 4. Create and describe other possible alternatives for motivating employee wellness. 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Kline, “Facilitating Trust and Communication in Virtual Teams,” People & Strategy, 41, Spring 2018, 30–35; and adapted from “Developing and Sustaining High-Performing Work Teams,” SHRM.org, March 27, 2019, https://www.shrm.org/resourcesandtools/tools-and- samples/toolkits/pages/developingandsustaininghigh-performance- workteams.aspx. 39. D. Wilkie, “Why Are Companies Ending Remote Work?” SHRM.org, May 7, 2019, https://www.shrm.org/resourcesandtools/hr-topics/employee- relations/pages/drawbacks-to-working-at-home-.aspx. 40. J. Eisenberg and A. Krishnan, “Addressing Virtual Work Challenges: Learn- ing from the Field,” Organization Management Journal, 15, 2018, 78–94. 41. Julia Eisenberg and Aparna Krishnan, “Addressing Virtual Work Challenges: Learning From the Field,” Organization Management Journal 15, no. 2 (May 2018): 78–94. https://doi.org/10.1080/15416518.2018.1471976. 42. J. Ferrell and K. 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De Pater, “Psychological and Physiological Reactions to High Workloads: Implications for Well-Being,” Personnel Psychology, Summer 2010, 407– 436; and E. R. Crawford, J. A. LePine, and B. L. Rich, “Linking Job Demands and Resources to Employee Engagement and Burnout: A Theoretical Extension and Meta-Analytic Test,” Journal of Applied Psychology, September 2010, 834–848. 67. See M. R. Frone, “Are Work Stressors Related to Employee Substance Use? The Importance of Temporal Context in Assessments of Alcohol and Illicit Drug Use,” Journal of Applied Psychology, January 2008, 199–206. 68. T. Wright, “More than Meets the Eye: The Role of Employee Well-Being in Organizational Research,” Oxford Handbook of Positive Psychology and Work (Oxford, UK: Oxford University Press, 2010), 143–154. 69. M. Yale, “Accounting for ‘Failure’ to Prospective Employers,” SHRM.org, September 26, 2017, https://www.shrm.org/resourcesandtools/hr-topics/ organizational-and-employee-development/pages/accounting-for-a- failure-to-prospective-employers.aspx. 70. O. Babur, “Talking About Failure Is Crucial for Growth. Here’s How to Do It Right,” The New York Times, August 17, 2018, https://www.nytimes. com/2018/08/17/smarter-living/talking-about-failure-is-crucial-for- growth-heres-how-to-do-it-right.html. 71. O. Babur, “Talking About Failure Is Crucial for Growth. Here’s How to Do It Right,” The New York Times, August 17, 2018, https://www.nytimes. com/2018/08/17/smarter-living/talking-about-failure-is-crucial-for- growth-heres-how-to-do-it-right.html. 72. O. Babur, “Talking About Failure Is Crucial for Growth. Here’s How to Do It Right,” The New York Times, August 17, 2018, https://www.nytimes. com/2018/08/17/smarter-living/talking-about-failure-is-crucial-for- growth-heres-how-to-do-it-right.html. 73. Adapted from M. Yate, “Accounting for ‘Failure’ to Prospective Employ- ers,” SHRM.org, September 26, 2017, https://www.shrm.org/resource- sandtools/hr-topics/organizational-and-employee-development/pages/ accounting-for-a-failure-to-prospective-employers.aspx. Organizational Behavior: A Practical, Problem-Solving Approach I-1 glossary/subject index Bold page numbers indicate definitions. Italic page numbers indicate material in figures, illustrations, or tables. A ABCDEs of cognitive restructuring, 669–670 absenteeism, 382 abusive supervision The sustained display of hostile verbal and nonverbal behavior by managers, ­521–522 academic fraud, 12, 462 access-and-legitimacy perspective  Recognition that the organization’s markets and constituencies are culturally diverse, 140 accountability in groups versus teams, 299, 299 in performance management, 206 accounting. See financial performance accuracy, of feedback, 221 achievement in acquired needs theory, 166 in PERMA, 287 acquired needs theory States that three needs—achievement, affiliation, and power—are the key drivers of employee behavior, ­165–168, 166 acronyms, and organizational culture change, 568–569, 568 action plans, in goal setting, 210 active listening, 346 adaptability (team adaptive capacity)  The ability to make needed changes in response to demands put on the team, ­323–324 adaptive change Reintroduces a familiar practice either in a different unit or in the same unit at a different point in time, 646, 646 adhocracy culture One that has an external focus and values flexibility, 560, 562–563, 564, 565 adjourning, in group development, 307 ADR (alternative dispute resolution)  A means for solving disputes using an independent third party and avoids the costs and problems associated with litigation or unilateral decision making, ­405–407, 406 affective component of an attitude  Our feelings or emotions about a given object or situation, 50 affiliation, in acquired needs theory, 166, 168 affirmative action An intervention aimed at giving management a chance to correct an imbalance, injustice, mistake, or outright discrimination that occurred in the past, ­137–138 African Americans, 141, 142, 641 age communication styles and, 351–352 in diversity management, 151–152 social media use, 353 stereotypes, 130 values and, 47 workforce trends, 142–144, 143 age discrimination, 151–152 agreeableness, 88, 93 AI (artificial intelligence) A form of computing that allows machines to perform cognitive functions, 440–441 alignment of goals, 597 alternative dispute resolution (ADR) A means for solving dis- putes using an independent third party and avoids the costs and problems associated with litigation or unilateral decision making, ­405–407, 406 altruism, 258 ambiguity reducing in virtual teams, 483 tolerance for, 442 Americans with Disabilities Act Prohibits discrimination against those with disabilities and requires organizations to reason- ably accommodate an individual’s disabilities, 142 amplifying effect Positive practices from one individual result in addi- tional positive practices by others, which spur positivity in others, which generate other positive outcomes, ­254–255 amusement (emotion), 263 analytical style (decision making), 443–444, 443 analytical thought, 425–426 anchoring bias Occurs when decision makers are influenced by the first information they receive about a decision, even if it is irrelevant, 435 anger management, 111–112, 112 antecedents, in communication, 348, 349 anti-bullying strategies, 397 anticipatory socialization Informa- tion gathered and expectations formed before an individual actu- ally joins an organization, 575, 575 apologies, 498–499 appeals process, 178 appearance, in person perception, 127 applicant tracking software (ATS), 3 arbitration, 406, 421 artifacts The physical manifestation of an organization’s culture, ­552–553 artificial intelligence (AI) A form of computing that allows machines to perform cognitive functions, 440–441 Asians, 141, 640, 641 Ask for It: How Women Can Use the Power of Negotiation to Get What They Really Want (Babcock), 408 assimilation, in diversity management, 149 ATS (applicant tracking software), 3 attention The process of becoming consciously aware of someone or something, 124 attitudes Our feelings or opinions about people, places, and objects and range from positive to negative, 48 cognitive dissonance and, 50–51 components of, 50 employee surveys of, 49, 54 implications of, 70 intention and, 51–53, 51 job satisfaction outcomes, 64–65 Organizing Framework, 42 versus values, 48, 49 workplace, 48, 54–59 attribution theory, 132–133, 133 authority, in persuasion, 484 automated experience A choice based on a familiar situation and a partially subconscious application of learned information related to it, 430 autonomy as innate need, 168, 169 in job characteristics model, 189 availability bias A decision maker’s tendency to base decisions on information readily available in memory, 435 avoiding style (conflict management), 402, 403 awe, 263 B baby boomers, 47, 143, 143, 152, 658 balanced scorecard (BSC), 595, 625–627 basic underlying assump- tions Organizational values so taken for granted over time that they become assumptions guiding organizational behavior, 554 Organizational Behavior: A Practical, Problem-Solving Approach I-2 GLOSSARY/SUBJECT INDEX gl os sa ry /s ub je ct in de x change management implications of, 672–673 overcoming resistance, 666–668 Problem-Solving Case, 676–677 stress management and, 669–670 systems model application, 665–666 tips for managers, 670–671 character strengths, 277–278, 277 charisma A form of interpersonal attraction that inspires acceptance, devotion, and enthusiasm, 530 cheating, 11–12, 17–18, 462–463 clan culture One that values internal focus and flexibility rather than stability and control, ­559–560, 559, 562–563, 564, 564, 565 closed system A self-sufficient entity, ­599–600 coaching A customized process between two or more people with the intent of enhancing learning and motivating change or improv- ing an individual’s behavior and performance to resolve work issues or handle specific aspects of the job and may be short term, 224, 580 as mentoring function, 581 organizational culture change and, 568, 569 in performance management, 206, 224–225 self-efficacy and, 99 coalition An informal group bound together by the active pursuit of a single issue, 490 coalition-level politics, 490–491, 490 coalition tactics, 480 coercive power Power to make threats of punishment and deliver actual punishment, 468, 474 cognitive abilities, in leaders, 514 cognitive appraisals of stress, 661–662 cognitive bias, 434–435 cognitive categories Groups of objects that are considered equivalent, 124 cognitive component of an attitude  Our beliefs or ideas about an object or situation, 50 cognitive dissonance The psycho- logical discomfort a person experi- ences when simultaneously holding two or more conflicting cognitions (ideas, beliefs, values, or emotions), 50–51 cognitive load, 126 cognitive restructuring, 669–670 cohesiveness A sense of “we-ness” that tends to override individual differences and motives, ­448–449 breathing meditations, 271–272 broaden-and-build theory, 254–255, 283–284 BSC (balanced scorecard), 595, 625–627 buffering effect The reduction of the impact of negative events and stressors through positive practices and resources, 255 bullying Unwelcomed behavior that occurs over a period of time and is meant to harm someone who feels powerless to respond, ­­ 397–398, 397 business skills, in leaders, 514 busyness, versus productivity, 200 C career planning, 203 categorization, in stereotyping, 130 category-based knowledge, 125–126, 129 causal attributions Suspected or inferred causes of behavior, ­132–134, 132, 133 celebrations, as rewards, 242 centralized decision making Occurs when key decisions are made by top management, 614 central tendency, 215 chain of command, 597 change diversity management and, 147 employee relocation, 638 external forces for, 639–643, 640 internal forces for, 640, 643–645 Kotter’s process, 652, 653 Legal/Ethical Challenge, 678 Lewin’s model, 647–648, 647 organizational development approach, 652–654, 653 Organizing Framework, 637 Problem-Solving Application, 665–666 resistance to, 655–657, 656 self-assessment, 639, 651 systems model, 648–652, 648 types of, 646–647, 646 change agent Someone who is a catalyst in helping organizations deal with old problems in new ways, 657 common pitfalls of, 657 relationship with employees, 667–668 change and acquisition phase Socialization phase which requires employees to master important tasks and roles and adjust to their work group’s values and norms, 575, 577 behavior causal attribution, 132–134, 132, 133 job satisfaction outcomes, 66–68 organizational culture effects on, 557 reinforcement and consequences, 236–242, 237 Theory of Planned Behavior, 51–53, 51 behavioral component of an attitude The way we intend or expect to act toward someone or something, 50 behavioral style (decision making), 443, 444 behavioral styles approach Attempts to identify the unique behaviors displayed by effective leaders, 516 behaviorism, 236 bias in attribution, 134 communication and, 350, 352 in decision making, 433–436 in performance management, 204 big data The vast quantity of data available for decision making, ­­439–440, 614 Big Five Personality Dimensions:  Extroversion, agreeableness, con- scientiousness, emotional stability, and openness to experience, ­88–89, 88, 93 blame, as political tactic, 488, 489–490 blindness, in unethical behavior, 18 bodily-kinesthetic intelligence, 84 body movements, in communication, 345 body shape, in person perception, 126 bonuses, 197, 242 boredom, and creativity, 455 bottom-up job design, 185, 185, 189–190 boundaries, in team charter, 298 boundaryless organization One in which management has largely succeeded in breaking down barriers between internal levels, job functions, and departments, as well as reducing external barriers between the association [organiza- tion] and those with whom it does business, 606 bounded rationality Represents the notion that decision makers are “bounded” or restricted by a variety of constraints when making decisions, ­429–430 brainstorming, 427, 450–451, 451 brainwriting (electronic brainstorm- ing) Allows participants to submit their ideas and alternatives over the Internet, 451 Organizational Behavior: A Practical, Problem-Solving Approach I-3GLOSSARY/SUBJECT INDEX glossary/subject index consultation (influence tactic), 480 contact hypothesis Suggests that the more members of different groups interact, the less intergroup con- flict they will experience, 388 content theories of motiva- tion Based on the idea that an employee’s needs influence his or her motivation, 164 acquired needs theory, 165–168, 166 motivator-hygiene theory, 169–171 need hierarchy theory, 164–165, 165 self-determination theory, 168–169 theory comparison, 172 Theory X and Theory Y, 164 contingency approach Calls for using the OB concepts and tools that best suit the situation, instead of trying to rely on “one best way,” 5, 211, 211, 668 contingency approach to organiza- tion design Organizations tend to be more effective when they are structured to fit the demands of the situation, and when the struc- ture is aligned with internal activi- ties and actions of the organization, ­613–615 contingency theories of leadership  Propose that the effectiveness of a particular style of leader behavior depends on the situation, 523 application of, 529 Fiedler’s model, 523–525, 524 path-goal theory, 526–529, 526, 527, 528 continuous reinforcement (CRF) A reinforcement schedule in which every instance of a target behavior is reinforced, ­239–240 contractual trust, 318 contrast effect, 215 control strategy Behaviors and cognitions that directly anticipate or solve problems, 662 cooperative (functional or constructive) Characterized by consultative interactions, a focus on the issues, mutual respect, and useful give-and-take, 382, 400 coordination of effort, 597 core self-evaluations (CSEs) Four narrow and positive individual traits: (1) generalized self-efficacy, (2) self-esteem, (3) locus of control, and (4) emotional stability, 96, 96 emotional stability, 88, 93, 101, 102 locus of control, 100–101 practical considerations, 102–103 conciliation, 406 confidence, in giving feedback, 218 confirmation bias Pertains to how we selectively gather information, 433 conflict management alternative dispute resolution, 405–407, 406 programmed conflict techniques, 400, 401 self-assessment, 402 styles of, 401–405, 402, 403 conflict The energy created by the perceived gap between what we want and what we’re experiencing, ­381–382, 383 avoidance of, 385, 386 causes of, 383, 383 contemporary types of, 391–399 continuum of, 382, 383 conventional types of, 387–390 escalation of, 383–384 functional versus dysfunctional, 382 Legal/Ethical Challenge, 421 as opportunity, 386 Organizing Framework, 379 Problem-Application Case, 419–421 self-assessment, 381, 392 in teamwork, 322 conscientiousness, 88, 93 conscious thought, 425–426 consensus (in attribution theory)  Compares an individual’s behavior with that of his or her peers, 132, 133 consensus (in decision making)  When all members can say they either agree with the decision or have had their ‘day in court’ and were unable to convince the others of their viewpoint. In the final analysis, everyone agrees to support the outcome, 450 consequences contingent, 237–239, 237 law of effect, 236 in team charter, 298 conservation, in value theory, 44, 45, 46 consideration Leader behavior that creates mutual respect or trust and prioritizes group members’ needs and desires, 518 consistency, in persuasion, 484 consistency Judges whether the individual’s performance on a given task is consistent over time, 132, 133 constructive (functional or cooper- ative conflict) Characterized by consultative interactions, a focus on the issues, mutual respect, and useful give-and-take, 382, 400 collaboration The act of sharing infor- mation and coordinating efforts to achieve a collective outcome, ­324–327, 668 commitment bases of power and, 473, 473 in organizational culture, 556 common sense, limits of, 7 communication competence A performance-based index of an individual’s abilities to effectively use communication behaviors in a given context, 344 communication The exchange of information between a sender and a receiver, and the inference ( perception) of meaning between the individuals involved, 339 as change agent pitfall, 657 crucial conversations, 367–368 empathy and, 348–349 gender differences in, 350–351, 352 generational differences in, 351–352 implications of, 370–371 in job interviews, 338 Legal/Ethical Challenge, 377 listening, 346–347, 346, 347 nondefensive, 348, 349 nonverbal, 344–346, 345, 412 Organizing Framework, 337 presentations, 364–366 Problem-Solving Application Case, 375–376 process of, 340–341, 340 self-assessment, 344, 347 social media, 353–363 in team collaboration, 324 transparency in, 341–342 upward feedback, 368–369, 369 in virtual teams, 315 communication trust, 318 comparison, in equity theory, 175 compassion A shared value that drives people to help others who are suffering, 281 compensation. See pay and benefits competence, as innate need, 168 competence trust, 318, 319 competing values framework (CVF) Provides a practical way for managers to understand, measure, and change organizational culture, ­558–565, 559 compliance, and bases of power, 473, 473 comprehensive task interdependence, 315 compromising style (conflict management), 402, 403 conceptual style (decision making), 443, 444 Organizational Behavior: A Practical, Problem-Solving Approach I-4 GLOSSARY/SUBJECT INDEX gl os sa ry /s ub je ct in de x interactions, such as attitudes, opinions, and values, 137 defensiveness A behavior that occurs when people perceive they are being attacked or threatened, 348, 349 delphi­technique A group process that generates anonymous ideas or judgments from physically dispersed experts in multiple rounds of brainstorming, 451 demographics The statistical mea- surements of populations and their qualities (such as age, race, gender, or income) over time, 135 diversity management and, 150 as force for change, 640, 641 Organizing Framework, 121 denial, in diversity management, 148 detached listening, 346 devil’s advocacy, 400, 401 diagnosis, in organizational development, 654 dialectic method A structured dialogue or debate of opposing viewpoints prior to making a decision, 400, 401 directive style (decision making), 442–443, 443 discrimination Occurs when employ- ment decisions about an individual are based on reasons not associ- ated with performance or related to the job, 137 age, 151–152 racial, 130, 142, 159 reverse, 147 dishonesty, in negotiation, 413, 414 dispositional/genetic model, 62 dispositional resistance to change A stable personality trait characterized by being less likely to voluntarily initiate changes and more likely to form negative attitudes toward the changes encountered, 656 distinctiveness Compares a person’s behavior on one task with his or her behavior on other tasks, 132, 133 distributive justice The perceived fairness of the way resources and rewards are distributed or allocated, 175, 177 distributive negotiation Concerns a single issue—a “fixed pie”—in which one person gains at the expense of another, 408, 409 diversity climate A subcomponent of an organization’s overall climate defined as the employees’ customer service and satisfaction, 69 CVF (competing values framework)  Provides a practical way for manag- ers to understand, measure, and change organizational culture, ­558–565, 559 CWB. See counterproductive work behavior cyber-bullying, 397–398 cyberloafing Using the Internet at work for personal use, 356 D Dark Triad, 92 Darwinian perspective, 350 decentralized decision mak- ing Occurs when important decisions are made by middle- and lower-level managers, 614 deception in job interviews, 496 in negotiation, 413 decision making Entails identifying and choosing from among alternate solutions that lead to a desired state of affairs, 425 centralized versus decentralized, 614 as change agent pitfall, 657 critical thinking in, 424 ethical, 445–446, 445 evidence-based, 437–441 group decision making, 447–451 heuristics (biases) in, 433–436 implications of, 456 nonrational models, 428–432, 431 Organizing Framework, 423 Problem-Solving Application Case, 460–461 rational model, 426–428, 426 self-assessment, 444, 450 styles of, 442–444, 443 in virtual teams, 315 ways of thinking and, 425–426 decision-making style The way an individual perceives and compre- hends stimuli and the general manner in which he or she chooses to respond to such information, ­442–444, 443 decision support systems (DSS)  Computer-based interactive systems that help decision makers to use data and models to solve unstructured problems, 451 decision tree A graphical representa- tion of the process underlying decisions, ­445–446, 445 decoding, in communication, 341 deep-level characteristics Those that take time to emerge in core self-evaluations (CSEs) (Cont.) self-assessment, 103 self-efficacy, 97–99, 97, 99 self-esteem, 99–100 counseling, as mentoring function, 581 counterproductive work behavior (CWB) Behavior that harms other employees, the organization as a whole, and/or organizational stakeholders such as customers and shareholders, ­67–68 creative outcome effectiveness  The joint novelty and usefulness (quality) of a product or service as judged by others, 452 creative performance behav- iors Four key behaviors that drive the production of creative outcomes, ­452–454 creativity The process of producing new and useful ideas concerning products, services, processes, and procedures, 452 implications of, 456 increasing, 455 model of, 452–454, 452 Organizing Framework, 423 rewards and, 455 self-assessment, 454 self-efficacy and, 99 as sought-after skill, 8 in team collaboration, 324 credibility of feedback, 221 performance and, 10 criminal records, in job candidates, 294 critical thinking in decision making, 424 as sought-after skill, 8 cross-functional teams Teams created with members from different disciplines within an organization, such as finance, operations, and R&D, 313 crowdsourcing Practice of inviting nonemployees to contribute to achieving particular goals and manage the input process via the Internet, ­355–356, 621 Crucial Conversations (Grenny), 367 crucial conversations Discussions between two or more people where (1) the stakes are high, (2) opin- ions vary, and (3) emotions run strong, ­367–368 CSEs. See core self-evaluations culture, in person perception, 127–128. See also organizational culture customers balanced scorecard and, 626 as force for change, 642 Organizational Behavior: A Practical, Problem-Solving Approach I-5GLOSSARY/SUBJECT INDEX glossary/subject index perceptions of psychological empowerment in others, ­518–519 empowerment Efforts to enhance employee performance, well-being, and positive attitudes, 475 evolution of, 476–477, 477 individual, team, and organization levels, 477–479, 478 Problem-Solving Application, 479 psychological, 477–478 structural, 475–476 enacted values The qualities and norms that are exhibited or converted into employee behavior, 553 encoding, in communication, 341 encounter phase Socialization phase when employees come to learn what the organization is really like, 575, 576 engagement, in PERMA, 285. See also employee engagement entrepreneurs, 91–92, 91 environment, and worker fatigue, 661 EPM (electronic performance monitoring) Technology used to gather, store, analyze, and report employee behavior, ­213–214 equity sensitivity, 176 equity theory A model of motivation that explains how people strive for fairness and justice in social exchanges or give-and-take relationships, 173 elements of, 174–175, 174 equity sensitivity in, 176 of job satisfaction, 62 justice components, 175–176, 177 motivating employees with, 176–178 escalation of commitment bias  The tendency to hold to an ineffec- tive course of action even when it is unlikely the bad situation can be reversed, 436 escape strategies A coping strategy in which stressors are ignored or avoided, 662 ESG investing, 259 espoused values Explicitly stated qualities and norms preferred by an organization, 553 ethical dilemmas Situations with two choices, neither of which resolves the situation in an ethically acceptable manner, ­15–17. See also Legal/Ethical Challenge ethical leadership Normatively appropriate behavior that focuses on being a moral role model, 521 among them, and to use this information to guide your thinking and actions, 104 benefits of, 107 developing, 105, 107–108 individual differences and, 108 Problem-Solving Application, 106 role in leadership, 513 self-assessment, 105 emotional stability Tendency to be relaxed, secure, unworried, and less likely to experience negative emotions under pressure, 88, 93, 101, 102 emotions Complex, relatively brief responses aimed at a particular tar- get, such as a person, information, experience, or event. They also change psychological and/or physiological states, 77, 109 implications of, 114 during job search, 113 management of, 111–112, 112 mixed, 110 negative, 110, 112, 264 negotiation and, 411–413 Organizing Framework, 77 past versus future focus, 111 in person perception, 126 positive, 110, 261–267, 263, 283–284 procrastination and, 110 empathy The ability to recognize and understand another person’s feelings and thoughts, ­348–349 employee benefits. See pay and benefits employee engagement The harness- ing of organization members’ selves to their work roles; in engagement, people employ and express themselves physically, cognitively, and emotionally during role performance, ­56–57 creating own sense of, 43, 285 increasing, 58–59 Organizing Framework, 57 outcomes of, 57–58 self-assessment, 58 in U.S., global workforce, 57, 57 employee positivity, 257, 257–258 employee turnover conflict management and, 404 dysfunctional conflict and, 382 job satisfaction and, 68–69 employers communicating with, 3 skills desired by, 8 employment tests, 93–95 empowering leadership Represents the leader’s ability to create aggregate perceptions about the organization’s diversity-related formal structure characteristics and informal values, 146, 147 diversity management Enables people to perform to their maximum potential, 138 barriers and challenges, 145–147 business rationale, 139–140 organizational practices, 148–152 Problem-Solving Application Case, 157–158 versus affirmative action, 137–138 diversity The multitude of individual differences and similarities that exist among people, 135 implications of, 153 layers of, 135–136, 136 Organizing Framework, 121 self-assessment, 152 in virtual teams, 315 workplace trends, 140–144 divisional structure Segregates employees into organization groups based on industries, products or services, customers or clients, or geographic regions, 606, 612 division of labor, 597, 598 doing well and doing good, 257–258 dominating style (conflict management), 402, 403 drug tests, 119 DSS (decision support systems)  Computer-based interactive systems that help decision makers to use data and models to solve unstructured problems, 451 dysfunctional conflict Disagreements that threaten or diminish an organization’s interests, 382 E education, and worker fatigue, 661 education-work mismatches, 144, 150–151 efficacy. See self-efficacy electronic brainstorming (brainwrit- ing) Allows participants to submit their ideas and alternatives over the Internet, 451 electronic performance monitoring (EPM) Technology used to gather, store, analyze, and report employee behavior, ­213–214 e-mail management, 358, 358 emotional intelligence The ability to monitor your own emotions and those of others, to discriminate Organizational Behavior: A Practical, Problem-Solving Approach I-6 GLOSSARY/SUBJECT INDEX gl os sa ry /s ub je ct in de x instructional versus motivational, 218–219, 219 in job characteristics model, 189 lack of, 204 negative, 222–223, 223 in organizational development, 654 perceptions of, 221–222 reasons for lack of, 218 self-assessment, 221 sources of, 219–220 trends in, 224 upward feedback, 368–369, 369 The Fifth Discipline (Senge), 601 financial performance employee job satisfaction and, 69 organizational culture and, 565 in organizational effectiveness, 625–626 first impressions, 493–494, 495 flex space Policies that enable employees to do their work from different locations besides the office (coffee shop, home, or the beach), 393, 393 flextime A policy of giving employees flexible work hours so they can come and go at different times, as long as they work a set number of hours or meet deadlines, 56, 393, 393 flourishing The extent to which our lives contain PERMA, 251, 283 flow The state of being completely involved in an activity for its own sake, 285 followers, role in leadership, 537–538 FOMO (fear of missing out), 359–360 forgiveness The capacity to foster collective abandonment of justified resentment, bitterness, and blame, and instead adopt positive, forward- looking approaches in response to harm or damage, 282 formal group A group assigned by an organization or its managers to accomplish specific goals, 300, 301 formal statements, and organizational culture change, 567, 568 forming, in group development, 306 Frames of Mind: The Theory of Multiple Intelligences (Gardner), 83 framing bias Relates to the manner in which a question is posed or framed. It leads us to change the way we interpret alternatives, 436 freelancers, 609–610 friendship, as mentoring function, 581 frustration, as negative emotion, 112 frustration, management of, 113 fun, in workplace, 265 external factors Factors within the environment (such as a difficult task), 132, 133 external forces for change Forces that originate outside the organiza- tion, ­639–643, 640 external locus of control A belief that one’s performance is the product of circumstances beyond their immediate control, 101 extinction Weakening a behavior by ignoring it or making sure it is not reinforced, 239 extra-organizational stressors, 659–660, 660 extrinsic motivation Result of poten- tial or actual receipt of external rewards, 162 extrinsic rewards Financial, material, and social rewards originating from the environment, 226 extroversion, 88, 93 eye contact, in communication, 345, 346 F facial expressions, in communication, 345, 346 facial features, in person perception, 126 facilitation, 406 failure Occurs when an activity fails to deliver its expected results or outcomes, 603 coping with, 663 fear of, in resistance to change, 656 in innovation, 619–620 interview questions on, 664 learning from, 603 self-efficacy in, 97 fairness in feedback perception, 221 in performance monitoring, 214 family leave policies, 394 fatigue A prolonged state of physical and mental exhaustion that cannot simply be remedied by a good night’s sleep, 660 fear emotion management, 112, 113 FOMO (fear of missing out), 359–360 in resistance to change, 656 feedback Information about individual or collective performance shared with those in a position to improve the situation, 217 in communication, 341 do’s and don’ts, 224 ethics Guides our behavior by identify- ing right, wrong, and the many shades of gray in between, 11 cheating as breach of, 11–12 in decision making, 445–446, 445 importance of, 14–15 impression management and, 497–498 lapses in, 13–20 negotiation and, 413–414, 413 power use and, 472–473 Problem-Solving Application Case, 39–40 self-assessment, 20 upholding, 20 ethnocentrism, 145 etiquette in interviews, 494 for social media, 362–363 eustress (good stress) Stress associ- ated with positive emotions and outcomes, 658 evaluation, in organizational development, 654 event memory, 124–125 evidence-based decision making  The process of conscientiously using the best available data and evidence when making managerial decisions, 437 artificial intelligence in, 440–441 big data in, 439–440 evidence use in, 438–439 examples of, 437–438 evolutionary psychology, 350 exchange (influence tactic), 480 excitement, management of, 113 expectancy An individual’s belief that a particular degree of effort will be followed by a particular level of performance, 179 expectancy theory Holds that people are motivated to behave in ways that produce desired combinations of expected outcomes, 178 elements of, 179–180, 179 management implications, 181, 181 Problem-Solving Application, 180, 182 expectations in performance management, 206, 222 in stereotyping, 131 expertise An individual’s combined explicit knowledge and tacit knowledge, 431 expert power Influencing others with valued knowledge or information, 468, 474 explicit knowledge Information that can easily be put into words, 431 Organizational Behavior: A Practical, Problem-Solving Approach I-7GLOSSARY/SUBJECT INDEX glossary/subject index hard skills The technical expertise and knowledge to do a particular task or job function, 7, 10 helpers, followers as, 537 HERO (hope, efficacy, resilience, and optimism), 273 hierarchy culture One that has an internal focus, which produces a more formalized and structured work environment, and values stability and control over flexibility, 561, 564 hierarchy of authority, 597, 598 high-commitment work sys- tems Rely on selective hiring, comprehensive training, compara- tively high pay, pay contingent on performance, and good benefits, 453 high-school dropouts, 144 hindsight bias Occurs when knowl- edge of an outcome influences our belief about the probability that we could have predicted the outcome earlier, 435–436 hiring process candidates with criminal records, 294 core self-evaluation use, 103 employment tests, 93–95 etiquette and, 494 perception and, 122, 128 rejection of job candidates, 284–285 requirements for, 9 salary question, 249 social media use, 122, 354, 354 Hispanics, 141, 142, 150, 641 holistic hunch A judgment based on the subconscious integration of information stored in memory, 430 hollow structure (network struc- ture) Designed around a central core of key functions and out- sources other functions to outside companies or individuals who can do them cheaper or faster, 609, 612 hope Believing the future will be bet- ter than the present and that you have some power to make it happen, 256 components of, 273–274 developing, 276 as frequent positive emotion, 263 in psychological capital, 273 horizontal loading, 186 horizontal structure A structure in which teams or work groups, either temporary or permanent, are created to improve collaboration and work on common projects, 605, 605, ­607–608, 612 hostile work environments, 75, 146, 399 in person perception, 125 reasonable, 222 self-efficacy and, 99 SMART goals, 208, 209 in team collaboration, 324 goal-setting theory, 182–183 goal specificity Indicates whether a goal has been quantified, 183 The Good Fight, You First (Davey), 322 government regulations, as force for change, 642–643 gratitude, 256, 263 group cohesiveness The degree to which members feel part of the collective or “we” of the group, 307, 307 group decision making advantages, disadvantages, 448 goal of, 450 groupthink in, 448–449, 449 problem-solving techniques for, 450–451 self-assessment, 450 group-level stressors, 659, 660 group role A set of shared expected behaviors for members of the group as a whole, ­301–302 groups Collections of two or more individuals with low or no task dependency, who are not account- able to each other for their work, and who may or may not assemble for a specified period of time, 299 decision making in, 447–451 development models, 305–308, 305 formal versus informal, 300 implications of, 328–329 Organizing Framework, 297 roles and norms in, 300–304, 302, 303 self-assessment, 302 versus teams, 299–300, 299 groupthink A mode of thinking that people engage in when they are deeply involved in a cohesive in-group, when members’ strivings for unanimity override their motivation to realistically appraise alternative courses of action, ­448–449, 449 H halo effect, 215 harassment Discrimination based on a protected class (race, gender, religion, pregnancy, age, disability), that becomes illegal when it threat- ens your employment or is consid- ered intimidating, hostile, or abusive, ­398–399 functional conflict (constructive or cooperative conflict) Character- ized by consultative interactions, a focus on the issues, mutual respect, and useful give-and-take, 382, 400 functional structure Groups people according to the business functions they perform, for example, manu- facturing, marketing, and finance, 606, 612 fundamental attribution bias  Tendency to attribute another person’s behavior to his or her personal characteristics, rather than to situation factors, 134 G gaze, in person perception, 125, 126 gender communication and, 350–351, 352 in person perception, 126 stereotypes, 130 workplace diversity trends, 140–141 generational differences communication, 351–352 diversity management and, 152 stress levels, 658 values, 47 workforce, 142–144, 143 genetic factors, in job satisfaction, 62 Gen Xers, 143, 152, 658 Gen Y. See Millennials Gen Zers, 47, 143, 144, 658 gestures, in communication, 345 gig workers, 609–610 glass ceiling An invisible but absolute barrier that prevents women from advancing to higher-level positions, ­140–141 global mind-set The belief in one’s ability to influence dissimilar others in a global context, 515 goal commitment, 209, 209 goal displacement Occurs when the primary goal is overridden by a secondary goal, 448 goals and goal setting alignment of, in organizations, 597 in career planning, 203 in change management, 668, 671 contingency approach, 211, 211 emotional reactions to, 110 goal-setting process, 208–211, 209 hope and, 274 ill-conceived, 18 organizational culture change and, 568, 572 performance and, 184 performance versus learning goals, 207–208 Organizational Behavior: A Practical, Problem-Solving Approach I-8 GLOSSARY/SUBJECT INDEX gl os sa ry /s ub je ct in de x initiating structure Leader behavior that organizes and defines what group members should be doing to maximize output, 516 innate needs, 168 innovation system A coherent set of interdependent processes and structures that dictates how the company searches for novel prob- lems and solutions, synthesizes ideas into a business concept and product designs, and selects which projects get funded, 618, 619 innovation The creation of something new that makes money; it finds a pathway to the consumer, 616 culture and climate for, 619–620 failure and, 619 human capital for, 623 human resource practices for, 623 implications of, 629 leadership commitment, 619 in office design, 623–624, 624 organizational structure and processes for, 621–623 Problem-Solving Application, 620 resources for, 623 self-assessment, 621 types and focus of, 616–617, 617 innovative change Introduces a prac- tice that is new to the organization, 646, 646 inputs, in equity theory, 174 inspiration, 263, 668 inspirational appeals, 480 inspirational motivation Includes the use of charisma, relies on an attractive vision of the future, emotional arguments, and demonstrated optimism and enthusiasm, 530 institutional power, 166 instructional feedback, 218–219, 219 instrumentality The perceived relationship between performance and outcomes, 179, 180 integrating style (conflict management), 401, 403 integrative negotiation Negotiation in which numerous interests are considered, resulting in an agreement that is satisfactory for both parties, ­408–409, 409 intellectual stimulation Encourages employees to question the status quo and to seek innovative and creative solutions to organizational problems, 532 intelligence An individual’s capacity for constructive thinking, reasoning, and problem solving, 82 interpersonal deviance, social undermining, interactional injustice, harassment, abusive supervision, and bullying, 395 bullying, 397–398, 397 causes and outcomes of, 396, 396 harassment, 398–399 pervasiveness and cost of, 396 include/exclude, in diversity management, 148 inclusive design, 139 independent contractors, 609–610 independents, followers as, 537 indirect blindness, 18 individual differences (IDs) The many attributes, such as traits and behaviors, that describe each of us as a person, 77, 79 core self-evaluations, 96–103, 96 emotional intelligence and, 108 fixed versus flexible, 79–80, 80 implications of, 114 intelligence, 82–86 Organizing Framework, 77 personality, 87–95 positive psychological capital, 273–276 recipient characteristics, 656–657 signature strengths, 277–278, 277 individualized consideration  Consists of behaviors that provide support, encouragement, empowerment, and coaching to employees, 531 individual-level politics, 490 individual-level stressors, 659, 660 inferences, in stereotyping, 130 influence tactics Conscious efforts to affect and change behaviors in others, 480 common, 480, 481–482 effective use of, 483 implications of, 500 impression management, 493–499 Organizing Framework, 465 persuasion principles, 484 self-assessment, 482 using in influence plan, 485 in virtual teams, 483–484 informal group A group whose overriding purpose in getting together is friendship or a common interest, 300 information acquisition (scanning), 602 information distribution, 602 information exploitation, 413, 488 information gathering (creative behavior), 453 information interpretation, 602 ingratiation, 480, 488, 496 in-group exchange, 534, 535 human capital The productive poten- tial of an individual’s knowledge, skills, and experiences, 582 human resources as force for change, 643 innovation and, 623 humility, in leaders, 537 hygiene factors Include company policy and administration, technical supervision, salary, interpersonal relationships with supervisors, and working condi- tions. They cause a person to move from a state of no dissatisfaction to dissatisfaction, 170, 171 I idea evaluation/validation, 453 idea generation, 453 idealized influence To instill pride, respect, and trust within employees, 531 identity in organizational culture, 555–556 in team charter, 298 idiosyncratic deals (i-deals) Employ- ment terms individuals negotiate for themselves, taking myriad forms from flexible schedules to career development, 186, 191 illegal behavior, versus unethical, 13–14 implicit cognition Any thoughts or beliefs that are automatically activated from memory without our conscious awareness, 128, 350, 352 implicit leadership theory Proposes that people have beliefs about how leaders should behave and what they should do for their followers, 514 impression management Any attempt to control or manipulate the images related to a person, organization, or idea, 493 apologies, 498–499 ethics and, 497–498 first impressions, 493–494, 495 job interviews and, 494, 496–497 as political tactic, 488 reciprocity and, 494 self-assessment, 495 upward impression management, 494–496 improvement innovations Enhance or upgrade an existing product, service, or process, 617 inadequacy, as negative emotion, 112 incivility Any form of socially harmful behavior, such as aggression, Organizational Behavior: A Practical, Problem-Solving Approach I-9GLOSSARY/SUBJECT INDEX glossary/subject index goal achievement and, 183 job content and context in, 170–171, 170 measurement of, 60–61 models of, 61–62 organizational-level outcomes, 68–69 self-assessment, 60 telecommuting and, 62–63 job search, and emotions, 113 job security, in resistance to change, 656–657 job stress The harmful physical and emotional responses that occur when the requirements of the job do not match the capabilities, resources, or needs of the worker, 658, 660 cognitive appraisals of, 661–662 coping strategies, 662 stressor types and outcomes, 659–661, 662 job swapping, 187 joy, 263 judgmental heuristics Cognitive shortcuts or biases that are used to simplify the process of making decisions, 433 justice theory components, 175–176, 177. See also equity theory K kindness, 266 King Kong managers, 81 knowledge category-based, 125–126, 129 explicit, 431 integration of, 602 tacit, 431 Kotter’s change process, 652, 653 L language, and organizational culture change, 568–569, 568 Latinx, 141, 142, 150 law of effect Behavior with favorable consequences tends to be repeated, and behavior with unfa- vorable consequences tends to disappear, 236 leader–member exchange (LMX) theory Based on the assumption that leaders develop unique one-to- one relationships (exchanges) with each of the people reporting to them, ­534–536 leader–member relations The extent to which the leader has the support, loyalty, and trust of the work groups, 524 mind on their own, without explicit awareness of the evoking cues and of course without explicit evaluation of the validity of these cues, 430 improving, 432 model of, 430–431, 431 pros and cons of, 431–432 self-assessment, 432 intuitive thought, 425–426 involved listening, 346 isolation, in diversity management, 149 J job applications communication for, 3 person–organization fit and, 550 unethical behavior and, 18–19 job characteristics model Promotes high intrinsic motivation by design- ing jobs that possess five core job characteristics, ­188–189, 188 job crafting Employees’ attempts to proactively shape their work char- acteristics, ­189–190, 189, 190 job design (job redesign or work design) Any set of activities that alter jobs to improve the quality of employee experience and level of productivity, 185 bottom-up approaches, 189–190 idiosyncratic deals, 186, 191 models overview, 185–186, 185 moderators of, 189 self-efficacy and, 99 top-down approaches, 186–189 job enlargement Puts more variety into a worker’s job by combining specialized tasks of comparable difficulty, 186 job enrichment Modifies a job such that an employee has the opportu- nity to experience achievement, recognition, stimulating work, responsibility, and advancement, 188 job interviews. See interviews job involvement Represents the extent to which an individual is personally engaged in his or her work role, 65 job performance. See performance job rotation Moving employees from one specialized job to another, ­186–187 job satisfaction An affective or emotional response toward various facets of your job, 60 attitudinal outcomes, 64–65 behavioral outcomes, 66–68 genetics in, 82 multiple intelligences, 83–84, 84 practical intelligence, 84–85 testing, in sports, 86 training or improving, 85–86 intentions The end point or goal you want to achieve; they drive your behavior, 51–53, 51, 256 interactional justice The quality of the interpersonal treatment people receive when procedures are implemented, 175, 177 interactional perspective States that behavior is a function of interde- pendent person and situation factors, 24 interest (emotion), 263 interest-based negotiation, 408–409, 409 intergroup conflict, 387–390 intermittent reinforcement A rein- forcement schedule in which some but not all instances of a target behavior are reinforced, 240 internal alignment, 614 internal business perspective, 626–627 internal factors Factors within a person (such as ability), 132, 133 internal forces for change Forces that come from inside the organi- zation, 640, ­643–645 internal locus of control A belief that one can control the events and consequences that affect their lives, 101 internal virtual structures, 611 interpersonal intelligence, 84 interpersonal skills, 8, 514 interpersonal treatment, 176 intervention, in organizational development, 654 interviews communication in, 338 etiquette in, 494 explanation for leaving current job, 384–385 impression management and, 494, 496–497 questions on failure, 664 questions to answer and ask, 78 tips for, 9 virtual, 129, 363 intrapersonal intelligence, 84 intrinsic motivation Inspired by the positive internal feelings that are generated by doing well, 162, 168 intrinsic rewards Self-granted awards, such as psychic rewards, 226 introversion, 89, 90 intuition Consists of judgments, insights, or decisions that come to Organizational Behavior: A Practical, Problem-Solving Approach I-10 GLOSSARY/SUBJECT INDEX gl os sa ry /s ub je ct in de x logical-mathematical intelligence, 84 long-term memory, 124–125 love, 263 LPC (least preferred coworker) scale Measures the extent to which an individual takes a task or relationship-based approach toward leadership, 523 M Machiavellianism A belief that the ends justify the means, mainte- nance of emotional distance, and use of manipulation, 92, 513 maintenance roles Roles that foster supportive and constructive inter- personal relationships, 301, 302 management. See also leadership abusive supervision, 521–522 bad bosses, 80–81 causal attributions in, 132, 134 change management tips for, 670–671 expectancy theory and, 181, 181 as force for change, 644–645 LMX theory implications, 536 motivation for, 5, 6 OB implications, 36 person perception implications, 128–129 as sought-after skill, 8 stereotype reduction, 131 transformational leadership implications, 533 value theory in, 46 versus leadership, 511 Man’s Search for Meaning (Frankl), 286 marionette managers, 80–81 market changes, as force for change, 642 market culture One that has a strong external focus and values stability and control, ­560–561, 564, 565 matrix structure Combines a vertical structure with an equally strong horizontal overlay, ­606–607, 612 maximization, in negotiation, 413 MBTI (Myers-Briggs Type Indicator), 94 meaningfulness The sense of belong- ing to and serving something that you believe is bigger than the self, 286–287 mechanistic organizations Rigid bureaucracies with strict rules, narrowly defined tasks, top-down communication, and centralized decision making, 614 media richness Measures the capac- ity of a given communication medium to convey information and promote understanding, ­342–343 least preferred coworker (LPC) scale Measures the extent to which an individual takes a task or relationship-based approach toward leadership, 523 Legal/Ethical Challenge bankruptcy and CEO bonuses, 197 cheating, 462–463 company values, 504–505 conflict, 421 description of, 23 drug tests, 119 employee health and wellness, 678 hostile work environment, 75 job candidates with criminal records, 294 leadership and piercing policies, 545 organizational socialization, 591 racial discrimination, 159 salary question, in hiring, 249 social media impact, 377 team accountability, 334–335 universities’ tax-exempt status, 634–635 whistle-blowers, 41 legitimate power Having the formal authority to make decisions, ­467–468, 474 legitimating tactics, 480 leniency, in performance evaluations, 215 Lewin’s model of change, 647–648, 647 LGBT A widely recognized acronym to represent lesbian, gay, bisexual, and transgender, 142 lies, in negotiation, 413, 414 liking personality and, 87 in persuasion, 484 line managers Generally have the authority to make decisions for their units, 599 linguistic intelligence, 84 linguistic style A person’s characteris- tic speaking pattern, 350 listening The process of actively decoding and interpreting verbal messages, ­346–347, 346, 347 litigation, 382 LMX (leader–member exchange) theory Based on the assumption that leaders develop unique one-to- one relationships (exchanges) with each of the people reporting to them, ­534–536 locus of control A relatively stable personality characteristic that describes how much personal responsibility we take for our behavior and its consequences, ­100–101, 527 leadership A process whereby an indi- vidual influences a group of indi- viduals to achieve a common goal, 509. See also management basic skills of, 514 behavioral theories, 516–522 as change agent pitfall, 657 change management and, 671 contingency theories, 523–529 emotional intelligence in, 513 empowering, 518–519 equity/justice theory and, 178 ethical, 521 followers’ role in, 537–538 as force for change, 644–645 gender differences in, 514 humility and, 537 implications of, 539 innovation commitment, 619 integrated model of, 509–511, 510 leader-member exchange theory, 534–536 learning to lead, 508 Legal/Ethical Challenge, 545 organizational culture and, 566, 568, 570–571 Organizing Framework, 507 path-goal theory, 526–529, 526, 527, 528 perception and, 129, 514–515 Problem-Solving Application, 525–526 Problem-Solving Application Case, 543–544 self-assessment, 511, 518, 521, 532, 536 self-efficacy and, 99 servant-leadership, 519–521, 520 trait theories, 512–515 transactional, 516 transformational, 530–533, 531 versus management, 511 in virtual teams, 315 virtuous, 282 leadership prototype A mental representation of the traits and behaviors people believe leaders possess, ­514–515 The Leader’s Way (Dalai Lama, van den Muyzenberg), 271 learning goals Goals that promote enhancing your knowledge or skill, 207 learning organization One that proactively creates, acquires, and transfers knowledge and changes its behavior on the basis of new knowledge and insights, 600–603, 601, 601 learning perspective, in organizational effectiveness, 627 Organizational Behavior: A Practical, Problem-Solving Approach I-11GLOSSARY/SUBJECT INDEX glossary/subject index N narcissism Having a grandiose sense of self-importance; requiring or even demanding excessive admira- tion; having a sense of entitlement; lacking empathy; and tending to be exploitative, manipulative, and arrogant, 92, 513 naturalist intelligence, 84 need fulfillment models, 61 need hierarchy theory States that motivation is a function of five basic needs: physiological, safety, love, esteem, and self-actualization, ­164–165, 165 needs Physiological or psychological deficiencies that arouse behavior, 61, 125, 164 negative emotions awareness of, 257 balance with positive, 264 management of, 110, 112 strategies to avoid, 266–267 negative reinforcement The process of strengthening a desired behavior by contingently withdrawing something displeasing, 237, 238, 238 negotiation A give-and-take decision- making process between two or more parties with different preferences, 408 emotions and, 411–413 ethics and, 413–414, 413 factors to consider, 409–410 implications of, 415–416 Organizing Framework, 379 of pay raises, 161, 380, 413 of salaries, 380, 412–413 types of, 408–409, 409 networked virtual structures, 611 network-level politics, 490, 491–492 network structure (hollow structure) Designed around a central core of key functions and outsources other functions to o utside companies or individuals who can do them cheaper or faster, 609, 612 new-direction innovations Take a totally new or different approach to a product, service, process, or industry, ­617–618 noise Anything that interferes with the transmission and understanding of a message, 341 nondefensive communication, 348, 349 nondisclosure, in negotiation, 413 self-assessment, 271 minority dissent Occurs when group members feel comfortable disagree- ing with other group members, 449 mission statements An expression of the reason an organization exists, 649 organizational change and, 567, 649 in team charter, 298 modular structure One in which the company assembles product parts, components, or modules provided by external contractors, 610, 612 moral character An individual’s gen- eral tendency to think, feel, and behave in ways associated with eth- ical and unethical behavior, 414 motivated blindness, 18 motivating factors (motiva- tors) Include achievement, recog- nition, characteristics of the work, responsibility, and advancement. They cause a person to move from a state of no satisfaction to satisfaction, 170, 171 motivational feedback, 218–219, 219 motivation The psychological pro- cesses that underlie the direction, intensity, and persistence of behavior or thought, 162 content theories, 164–172 extrinsic versus intrinsic, 162 implications of, 192 as job satisfaction outcome, 64 to manage others, 5, 6 Organizing Framework, 160 Problem-Solving Application Case, 195–196 process theories, 173–184 through job design, 185–191 values and, 46, 46 motivator-hygiene theory Proposes that job satisfaction and dissatisfac- tion arise from two different sets of factors—satisfaction comes from motivating factors and dissatisfac- tion from hygiene factors, ­169–172 motivators (motivating factors)  Include achievement, recognition, characteristics of the work, responsibility, and advancement. They cause a person to move from a state of no satisfaction to satisfaction, 170 multiple intelligences (MI), 83–84, 84 musical intelligence, 84 mutual adaptation, 149 Myers-Briggs Type Indicator (MBTI), 94 myths, in organizational culture change, 568, 570 mediation, 406 meditation techniques, 271–272, 272 medium of communication, 341, 342–343, 342 meetings, 466 memory, in social perception, 124–125 men communication patterns, 350–351 family leave for, 394 leadership traits, 514 mental abilities, 142 mentoring The process of forming and maintaining intensive and lasting developmental relationships between a variety of developers (people who provide career and psychosocial support) and a junior person (the protégé, if male, or protégée, if female), 580 benefits of, 582 developmental networks for, 583–584 functions and phases of, 580–582, 581 human and social capital and, 582–583 implications of, 585 Organizing Framework, 549 self-assessment, 584 message, in communication, 340, 340 meta-analysis, 512 met expectations The difference between what an individual expects to receive from a job, such as good pay and promotional opportunities, and what she or he actually receives, 61 #MeToo movement, 15–16, 398, 472, 503–504 MI (multiple intelligences), 83–84, 84 microaggressions, 359 microinternships, 319 Millennials (Gen Y) best companies for, 146 digital device use, 351–352 generational differences and, 143–144, 143, 152 population of, 640 stress levels, 658 values of, 47 workplace benefits desired, 171 mindfulness The awareness that emerges through paying attention on purpose, in the present moment, and nonjudgmentally to the unfolding of experience moment by moment, 268, 268 benefits of, 270–271 in building self-awareness, 6 business use of, 269–270 practicing, 271–272 Organizational Behavior: A Practical, Problem-Solving Approach I-12 GLOSSARY/SUBJECT INDEX gl os sa ry /s ub je ct in de x assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments, 551 adhocracy culture, 560 clan culture, ­559–560, 559 competing values in, 562–563 conflict management in, 404 drivers of, 552, 552 functions of, 555–557, 556 hierarchy culture, 561 implications of, 585 for innovation, 619–620 levels of, 552–554 market culture, 560–561 mentoring in, 580–584 Organizing Framework, 549 outcome correlations, 564–565, 564 Problem-Solving Application Case, 589–591 self-assessment, 563, 573 socialization process in, 574–579, 575, 578 spans of control and, 599 subcultures, 565 organizational design Sets the s tructures of accountability and responsibility used to develop and implement strategies, and the human resource practices and information and business processes that activate those structures, 604 change over time, 593 contingency approach, 613–614 divisional, 606, 612 eras of, 604–606, 605 functional, 606, 612 hollow (network), 609, 612 horizontal, 605, 605, 607–608, 612 implications of, 615, 629 influence of, 596 innovation and, 621–623 internal alignment and, 614 matrix, 606–607, 612 modular, 610, 612 open, 605–606, 605 organizational culture change and, 568, 571–572 Organizing Framework for, 593 Problem-Solving Application, 609–610 traditional, 605, 605 virtual, 610–611, 612 organizational development (OD), 652–654, 653 organizational effectiveness basics of, 595–596, 596 implications of, 629 measuring with balanced scorecard, 625–627 organizational culture and, 564 optimism Attribution of successes to personal, permanent, and perva- sive causes, and negative events to external, temporary, and situation- specific ones, 273, 274–276, 275 optimizing Solving problems by pro- ducing the best possible solution based on a set of highly desirable conditions, 427 organic organizations Flexible net- works of multitalented individuals who perform a variety of tasks, 614 organizational activities, and organiza- tional culture change, 568, 570 organizational behavior (OB) Describes an interdisciplin- ary field dedicated to understand- ing and managing people at work, 4 benefits of, 4–5 as common sense, 7 contingency perspective, 5 implications of, 36 Organizing Framework, 27–30, 27, 31–33, 32 person-situation distinction, 23–25 problem solving and, 21–26 three levels of, 2, 26 Organizational citizenship behavior (OCB) Individual behavior that is discretionary, not directly or explicitly recognized by the formal reward system, and that in the aggregate promotes the effective functioning of the organization, ­66–67 organizational climate Employees’ shared perceptions of organiza- tional policies, practices, proce- dures, and routines, 279, 281 creativity and, 454–455, 454 for innovation, 619–620 leadership and, 282 organizational practices and, 281–282 values and, 280–281 organizational commitment The extent to which an individual identifies with an organization and commits to its goals, 54–55 drivers of, 55 increasing, 55–56 organizational crises, and organizational culture change, 568, 570–571 organizational culture change mechanisms for, 567–572, 568 Problem-Solving Application, 572–573 truths about, 566–567 organizational culture The set of shared, taken-for-granted implicit nonrational models of decision making Explain how managers actually make decisions, 428 intuition model, 430–431, 431 Simon’s normative model, 428–430 nonverbal communication Commu- nication without words, ­344–346, 345, 412 nonverbal cues, in person perception, 127 normative model, 428–430 norming, in group development, 307 norms Shared attitudes, opinions, feelings, or behaviors that guide individual and group behavior, 298, 303, 303 O OB. See organizational behavior obliging style (conflict management), 401, 403 OCB (Organizational citizenship behavior) Individual behavior that is discretionary, not directly or explicitly recognized by the formal reward system, and that in the aggregate promotes the effective functioning of the organization, ­66–67 OD (organizational development), 652–654, 653 ombudsman, 406 onboarding programs Help employ- ees to integrate, assimilate, and transition to new jobs by making them familiar with corporate policies procedures, culture, and politics and clarifying work-role expectations and responsibilities, 69, ­576–577 On-ramping Encourages people to reenter the workforce after a temporary career break, 150 openness to change, 44, 44, 46 openness to experience, 88, 93 open organizational design, 605–606, 605 open system Depends on constant interaction with the environment for survival, ­599–600, 601 operant behavior Behaviors that are learned and occur when we “ operate on” the environment to produce desired consequences, ­236–239, 237 operant conditioning. See operant behavior opportunity A situation in which results that exceed goals and expectations are possible, 426 Organizational Behavior: A Practical, Problem-Solving Approach I-13GLOSSARY/SUBJECT INDEX glossary/subject index of feedback, 221–222 in hiring process, 122, 128 implications of, 153 leadership and, 129, 514–515 performance appraisals and, 128–129 person perception model, 125–129, 126 of politics, 492 stages of, 123–125, 124 stereotypes in, 130–131 performance credibility and, 10 employee engagement and, 57–58 goals effects on, 184 job satisfaction and, 66 personality effects on, 93 positivity and, 252 reinforcement schedules and, 241–242, 242 underperformance and failures, 663 verbal recognition and, 171 performance appraisals diversity management and, 147 perception and, 128–129 typical scenario, 204 versus performance management, 201 Performance Conversations: An Alternative to Appraisals (Lee), 217 performance evaluation The pro- cess of comparing performance at some point in time to a previously established expectation or goal, ­214–216, 215 performance goals Goals that garner a specific end result, 207 performance management (PM)  A set of processes and managerial behaviors that include defining, monitoring, measuring, evaluat- ing, and providing conse- quences for performance expectations, 201 coaching in, 206, 224–225 common uses of, 202–203 effective, 201–202, 202, 206 feedback in, 217–224 goal setting in, 207–211 implications of, 243–244 monitoring and evaluating in, 212–216, 215 Organizing Framework, 199 pay for performance in, 233–235, 233, 234 pitfalls of, 203–205 Problem-Solving Application Case, 247–249 reinforcement and consequences in, 236–242 rewards in, 226–232 versus performance appraisals, 201 outcome interdependence The degree to which the outcomes of task work are measured, rewarded, and communicated at the group level so as to emphasize collective outputs rather than individual contributions, 316 out-group exchange, 534 outputs, in equity theory, 174 overconfidence bias Results in overestimating our skills relative to those of others and overestimating the accuracy of our predictions, ­433–435 overqualification, 144 overvaluation, in unethical behavior, 18 P paraphrasing Restating what some- one else has said or written, 345 passive listening, 346 path-goal theory Holds that leader behaviors are effective when employees view them as a source of satisfaction or as paving the way to future satisfaction, ­526–529, 526, 527, 528 pay and benefits. See also rewards desired by Millennials, 171 Legal/Ethical Challenge, 197, 249 pay raise negotiation, 161, 380, 413 as performance management focus, 204 Problem-Solving Applications, 171–172, 180 salary negotiations, 380, 412–413 variable pay, 233–235, 233, 234 pay for performance Merit and/or bonus pay based on individual-, group-, or organization-level measures and involving individual, group, or organization rewards, ­233–235, 233, 234 peer pressure, 304, 657 peer review, 406 people management, as sought-after skill, 8 people with disabilities, 142 perceived behavioral control, 51, 53 perceived organizational support (POS) The extent to which employ- ees believe their organization values their contributions and genuinely cares about their well- being, 59 perceiver, in person perception, 125–126, 126 perception A cognitive process that enables us to interpret and under- stand our surroundings, 123 Problem-Solving Application Case, 633–634 strategy mapping for, 627–628, 628 organizational identity, 555–556 organizational justice, 175 organizational-level stressors, 659, 660 organizational memory, 602 organizational politics Intentional actions to improve individual or organizational interests, 486 behavior drivers, 487–488 common tactics, 488–490, 488 implications of, 500 Organizing Framework, 465 political action levels, 490–492, 490 positive and negative, 486–487 Problem-Solving Application Case, 503–504 self-assessment, 486 using, 492 organizational practices The proce- dures, policies, practices, routines, and rules that organizations use to get things done, 281, 668 organizational processes in change management, 668 innovation and, 621–623 organizational culture change and, 568, 570 organizational socialization The process by which individuals acquire the knowledge, skills, attitudes, and behaviors required to assume a work role, 574 application of, 577–579 implications of, 585 Legal/Ethical Challenge, 591 Organizing Framework, 549 self-assessment, 577 tactics of, 578 three-phase model of, 574–577, 575 tips for improving, 579 organizational structure. See organizational design organizational systems and procedures, 568, 572 organization A system of consciously coordinated activities or forces of two or more persons, 597 common characteristics, 597 learning organizations, 600–603, 601 line versus staff positions in, 599 open-system perspective, 599–600, 601 spans of control in, 599 organization charts, 598–599, 598 Organizing Framework. See also specific topics basic version, 27–29, 27 summary version, 31–33, 32 using for problem solving, 29–30 Organizational Behavior: A Practical, Problem-Solving Approach I-14 GLOSSARY/SUBJECT INDEX gl os sa ry /s ub je ct in de x positive reinforcement The process of strengthening a behavior by contingently presenting something appealing, 237 positivity balance with negativity, 264 benefits of, 262 contagious aspect, 262 in employees, 257, 257 most frequent positive emotions, 263 performance and, 252 resistance to change and, 668 as resource, 261–262 self-assessment, 267 strategies for increasing, 256–257, 265–267 positivity effect The attraction of all living systems toward positive energy and away from negative energy, or toward that which is life giving and away from that which is life depleting, 255 POS (perceived organizational support) The extent to which employees believe their organiza- tion values their contributions and genuinely cares about their well-being, 59 P-O (person–organization fit) The extent to which your personality and values match the climate and culture in an organization, 550, 573, 615 power The discretion and the means to enforce your will over others, 467 in acquired needs theory, 166, 168 bases (forms) of, 467–470, 467, 473, 474 commitment versus compliance, 473, 473 empowerment, 475–479, 476 ethical and effective use of, 472–473 implications of, 500 influence tactics, 480–485, 485 Organizing Framework, 465 outcomes of, 472, 474, 474 political tactics, 486–492 position versus personal power, 470–471, 471 self-assessment, 470 practical intelligence The ability to solve everyday problems by utiliz- ing knowledge gained from experi- ence in order to purposefully adapt to, shape, and select environments, ­84–85 praise, as political tactic, 488 prejudice, 145 preparation/information gathering ( creative behavior), 453 P-E (person–environment fit) The compatibility between an individ- ual and a work environment that occurs when their characteristics are well matched, 550 phubbing, 359 physical abilities, 142 physical attractiveness, in person perception, 127 PM. See performance management politics. See organizational politics pooled task interdependence, 315 portable skills Relevant in every job, at every level, and throughout your career, 8 position-based negotiation, 408, 409 position power A source of influence associated with a particular job or position within an organization; also a leader’s formal power to reward, punish, or otherwise obtain compliance from employees, 470, 471, 524 positive deviance Successful performance that dramatically exceeds the norm in a positive direction, ­255–256, 256, 257 positive emotions. See positivity positive organizational behavior (positive OB) The focus on posi- tive human characteristics that can be measured, developed, effectively managed for performance improvement, 253 amplifying effect in, 254–255 benefits of, 255–259 buffering effect in, 255 challenges of, 259–260 for employee positivity, 257 flourishing in, 251, 283–287 framework for, 254, 254 implications of, 288–289 mindfulness and, 268–272 organizational climate, 279–282 Organizing Framework, 251 performance and, 252 positive emotions and, 261–267, 263 positive psychological capital in, 273–276 positivity effect in, 255 Problem-Solving Application, 260 Problem-Solving Application Case, 292–294 signature strengths in, 277–278, 277 positive psychological capital (PsyCap) Considerable levels of hope, efficacy, resilience, and optimism (HERO), 273 developing, 273–276 self-assessment, 276 performance monitoring Measuring, tracking, or otherwise verifying progress and ultimate outcomes, ­212–214, 212 performance norms, in team charter, 298 performing, in group development, 307 PERMA (positive emotions, engagement, relationships, meaning, and achievement), 283 personal appeals, 480 personal competence, 105 personality conflict Interpersonal opposition based on personal dislike or disagreement, 387, 388, 657 personality testing, 93–95, 95 personality The combination of rela- tively stable physical, behavioral, and mental characteristics that gives individuals their unique identities, 87 Big Five Dimensions of, 88–89, 88, 93 Dark Triad, 92, 513 as diversity layer, 136 “ideal employee,” 95 introversion, 89, 90 leadership traits, 512–513, 512 liking and fit in, 87 performance and, 93 proactive, 89–92 self-assessment, 88 personal power A source of influ- ence independent of position or job, 166, 470, 471 person–environment fit (P-E) The compatibility between an individ- ual and a work environment that occurs when their characteristics are well matched, 550 person factors Infinite characteristics that give individuals their unique identities, 24. See also specific factors in creative performance behaviors, 453 in employee engagement, 57 in negotiation, 414 in Organizing Framework, 27, 31, 32 in problem solving, 26 in transformational leadership, 531 person memory, 125 person–organization fit (P-O) The extent to which your personality and values match the climate and culture in an organization, 550, 573, 615 person perception model, 125–129 person-situation distinction, 24–26 persuasion principles, 484 Organizational Behavior: A Practical, Problem-Solving Approach I-15GLOSSARY/SUBJECT INDEX glossary/subject index reciprocal exchange between him- or herself and another party, 55 psychological empower- ment Employees’ belief that they have control over their work; believed to drive intrinsic motivation, 518 psychological empower- ment Occurs when employees feel a sense of meaning, competence, self-determination, and impact at work. Reflects employees’ belief that they have control over their work, 477 psychological safety climate A shared belief among team members that it is safe to engage in risky behaviors, such as questioning current practices without retribution or negative consequences, ­389–390 psychological safety The extent to which people feel free to express their ideas and beliefs without fear of negative consequences, 146 psychopathy A lack of guilt, remorse or concern for others when their own actions do others harm, 92, 513 public speaking, 364–366 puffery, in negotiation, 413 punctuated equilibrium Form of group development in which groups establish periods of stable functioning until an event causes a dramatic change in norms, roles, and/or objectives; the group then establishes and maintains new norms of functioning, returning to equilibrium, 308, 308 punishment The process of weaken- ing behavior through either the contingent presentation of some- thing displeasing or the contingent withdrawal of something positive, ­238–239 purpose. See meaningfulness Q quality improvement, and self-efficacy, 99 quid pro quo sexual harassment, 399 R race in person perception, 127–128 stereotypes, 130 workforce diversity trends, 141–142 racial discrimination, 130, 142, 159 organizational culture, 589–591 organizational effectiveness, 633–634 organizational politics, 503–504 performance management, 247–249 teams, 332–334 problem solving A systematic pro- cess for closing gaps between an actual and a desired situation, 21 OB applied to, 26 Organizing Framework, 29 person-situation distinction in, 24–26 practice scenario, 34–35 selecting solution, 29–30 self-assessment, 23 skills reinforcement tools, 23 as sought-after skill, 8 3-Step Approach, 21–22, 31 procedural justice The perceived fair- ness of the process and procedures used to make allocation decisions, 175, 177 process innovation A change in the way a product or a service is conceived, manufactured, or distributed, 616 process theories of motiva- tion Describe how various person factors and situation factors in the Organizing Framework affect motivation, 173 equity/justice theory, 173–178, 174, 177 expectancy theory, 178–182, 179, 181 goal-setting theory, 182–184 procrastination, 110 product design, inclusive, 139 product innovation A change in the appearance or functionality/perfor- mance of a product or a service or the creation of a new one, 616 productivity social media and, 354–356 versus business, 200 worker fatigue and, 661 project teams, 313. See also teams promotions diversity and, 146 organizational cultural change and, 568, 569 requirements for, 9–10 skills and job level, 10 prosocial behaviors Positive acts per- formed without the expectation of anything in return, 255 PsyCap. See positive psychological capital psychological capital. See positive psy- chological capital psychological contracts An individ- ual’s perception about the presentations, 364–366 presenteeism Occurs when employ- ees show up but are sick or in no condition to work productively, 661 pressure (influence tactic), 480 pride, 263 primary appraisals Perceptions of whether a stressor is irrelevant, positive, or negative, 662 privacy, and social media, 360–362 proactive personality An attribute of someone relatively unconstrained by situational forces and who effects environmental change. Proactive people identify opportunities and act on them, show initiative, take action, and persevere until mean- ingful change occurs, 89 in entrepreneurs, 91–92, 91 in managers, 90 self-assessment, 90 problem Difference or gap between an actual and a desired state or outcome, 21 problem formation/definition (creative behavior), 452–453 Problem-Solving Application age discrimination, 151–152 change, 665–666 cognitive bias, 434–435 conflict resolution, 406–407 description of, 23 emotional intelligence, 106 employee benefits, 171–172, 180 empowerment, 479 expectancy theory, 180, 182 innovation, 620 leadership, 525–526 organizational culture change, 572–573 organizational design, 609–610 positive organization behavior, 260 rewards, 232 sexual harassment, 52, 65–66 social media costs, 357–358 teams, 325–326 technology and performance, 33–34 Problem-Solving Application Cases change management, 676–677 communication, 375–376 company values, 73–74 conflict, 419–421 controversial spokesperson, 117–118 decision making, 460–461 description of, 23 diversity management, 157–158 fraud, 39–40 leadership, 543–544 motivation, 195–196 organizational behavior, 292–294 Organizational Behavior: A Practical, Problem-Solving Approach I-16 GLOSSARY/SUBJECT INDEX gl os sa ry /s ub je ct in de x sayings, and organizational culture change, 568–569, 568 scanning (information acquisition), 602 scarcity, in persuasion, 484 scheduling, and worker fatigue, 661 schema A person’s mental picture or summary of a particular event or type of stimulus, 124 scientific management The kind of management which conducts a business or affairs by standards established by facts or truths gained through systematic observation, experiment, or reasoning, 186, 186 secondary appraisals Perceptions of how able you are to cope with a given demand, 662 Self-Assessments acquired needs, 166 attitude toward older employees, 144 balanced scorecard, 627 bullying, 399 change, 639, 651, 655 communication, 344 conflict management, 402 conflict tendencies, 381 core self-evaluations, 103 creativity, 454 decision making, 444, 450 description of, 23 diversity climate, 147 diversity profile, 152 emotional intelligence, 105 employee engagement, 58 ethics, 20 group and team roles, 302 Idiosyncratic deals, 191 impression management, 495 influence tactics, 482 innovation, 621 interpersonal treatment, 176 intuition, 432 job crafting, 191 job satisfaction, 60 leadership, 511, 518, 521, 532, 536 learning organization, 603 listening style, 347 mentoring, 584 mindfulness, 271 motivation to manage, 6 organizational culture, 563, 573 organizational socialization, 577 performance feedback, 221 personality profile, 88, 90 political tendencies, 486 positive psychological capital, 276 positivity, 267 power, 470 problem-solving potential, 23 psychological safety climate, 390 resistance to change Any thought, emotion, or behavior that does not align with actual or potential changes to existing routines, 655 causes of, 656–657 dynamic model of, 655–656, 656 overcoming, 666–668 self-assessment, 655 respondent behavior Automatic reactions to stimuli, or stimulus- response (S-R), 236 response–stimulus (R–S) model. See respondent behavior restorative justice A shared belief in the importance of resolving conflict multilaterally through the inclusion of victims, offenders, and all other stakeholders, 280 resumes, lies on, 18–19 reverse discrimination, 147 reward power Obtaining compliance by promising or granting rewards valued by the other party, 468, 474 rewards creativity and, 455 desired outcomes, 228–229 distribution criteria, 228 diversity management and, 147 effectiveness of, 231–232 organizational culture change and, 568, 569–570 pay for performance, 233–235, 233, 234 Problem-Solving Application, 232 reinforcement schedules and, 241–242 self-assessment, 227 teamwork and, 229, 324, 325 total rewards, 230, 230 types of, 226–227 rites and rituals The planned and unplanned activities and ceremo- nies used to celebrate important events or achievements, 568, 571 role A set of expected behaviors for a particular position, ­301–302, 302 role modeling as mentoring function, 581 organizational culture change, 568, 569 S salary interview question, 249 negotiations for, 380, 412–413 salient stimuli, 124 satisficing Consists of choosing a solution that meets some minimum qualifications and thus is “good enough,” 430 radically innovative change  Introduces a practice new to the industry, 646, 647 ranting, for stress relief, 670 rational model of decision making Explains how managers should make decisions, ­­ 426–428, 426 rational persuasion, 480 readiness for change The strength of our beliefs and attitudes about the extent to which changes are needed and our capacity to suc- cessfully implement them, 651 realistic job preview (RJP) Give recruits a realistic idea of what lies ahead by presenting both positive and negative aspects of the job, ­575–576 rebels, followers as, 537 receiver, in communication, 340, 340 recency effect, 215 recipient characteristics, 656–657 reciprocal task interdependence, 315 reciprocity, 484, 494 referent power Use of personal charac- teristics and social relationships to effectively gain others’ compliance, ­468–470 refreezing stage of change, 647, 648 regulatory agencies, as force for change, 642–643 reinforcement negative, 237, 238, 238 positive, 237, 237, 239 schedules (timing) of, 239–242, 240, 242 rejection of job candidates, 284–285 as negative emotion, 112 relatedness, as innate need, 168, 169 relationship-oriented leadership in behavioral models, 518–521 in contingency models, 524–525 relationships in diversity management, 149 emotional intelligence and, 105 feedback and, 218 social support in, 285–286 in virtual teams, 315 relocation, 638 representativeness bias Leads us to look for information that supports previously formed stereotypes, 435 reputation negotiation and, 410 social media and, 362 resilience The capacity to consistently bounce back from adversity and to sustain yourself when confronted with challenges, 273, 274, 275, 276 Organizational Behavior: A Practical, Problem-Solving Approach I-17GLOSSARY/SUBJECT INDEX glossary/subject index social media The use of web-based and mobile technologies to generate interactive dialogue with members of a network, 353 blocking access to, 359 as communication platform, 352 costs of, 356–357 effective use of, 353–354, 355 email management, 358, 358 employer benefits, 356 etiquette, 362–363 hiring process and, 122, 354, 354 leader’s attitudes toward, 360 Legal/Ethical Challenge, 377 policy for, 360, 361–362, 361 privacy issues, 360–362 Problem-Solving Application, 357–358 productivity and, 354–356 referent power of influencers, 469–470 reputation and, 362 self-assessment, 360 use by age, 353 social perception. See perception social proof, 484 social responsibility, 259 social role theory, 350, 351 social support The amount of perceived helpfulness we derive from social relationships, 286 social system stability, 556–557 soft skills Relate to our human interactions and include both interpersonal skills and personal attributes, ­7–8, 8, 10 spans of control The number of people reporting directly to a given manager, 599 spatial intelligence, 84 spokesperson, controversial, 117–118 spot rewards, 241–242 staff employees Perform background research and provide technical advice and recommendations to their line managers, 599 staffing, and worker fatigue, 661 stage presence, for presentations, 365 STATE technique, 367–368 stereotypes An individual’s set of beliefs about the characteristics or attributes of a group, 130 as diversity management barrier, 145 formation and maintenance, 130–131 managerial challenges, 131 Organizing Framework, 121 types of, 130 storming, in group development, 306 storytelling, in organizational culture change, 568, 570 sense of fulfillment and meaning, ­277–278, 277 Simon’s normative model, 428–430 situational control, 523–524 situation factors All the elements outside us that influence what we do, the way we do it, and the ultimate results of our actions, 24 in communication, 343 in contingency perspective, 5 in creative performance behaviors, 453–454 in employee engagement, 57 in negotiation, 414 in Organizing Framework, 27, 32 in person perception, 126, 127 in person-situation distinction, 24–26 in problem solving, 26 Problem-Solving Application, 33–34 six thinking hats strategy, 424 skills desired by employers, 8 hard vs. soft, 7–8 job level correlation, 10 lacking in college graduates, 144 for leaders, 514 skill variety, in job characteristics model, 188 Skype interviews, 363 slippery slope, 18 slogans, and organizational culture change, 568–569, 568 SMART goals An acronym for specific, measurable, attainable, results oriented, and time bound, 208, 209 SMTs (self-managed teams) Teams with collective autonomy and responsibility to plan, manage, and execute tasks interdependently to achieve their goals, ­313–314 social capital The productive poten- tial resulting from relationships, goodwill, trust, and cooperative effort, ­582–583 social competence, 105 social context, in person perception, 127 social interactions, 265 socialization. See organizational socialization social loafing The tendency for indi- vidual effort to decline as group size increases, ­312–313, 312 social media policy Describes the who, how, when, and for what pur- poses of social media use, and the consequences for noncompliance, 360, 361–362, 361 cyber-bullying, 397–398 resistance to change, 655 rewards, 227 school–non-school conflict, 392 signature strengths, 278 social media, 360 team maturity, 309 team member effectiveness, 311 telecommuting, 608 trust, 319 values, 47 self-awareness, 5, 6, 105 self-determination theory Assumes that three innate needs influence our behavior and well-being—the needs for competence, autonomy, and relatedness, ­168–169 self-efficacy A person’s belief about his or her chances of successfully accomplishing a specific task, 97 application at work, 99 developing, 276 managerial implications, 99 model of, 97–98, 97 in psychological capital, 273, 274 self-enhancement, 44, 44, 46 self-esteem General belief about your self-worth, ­99–100 self-managed teams (SMTs) Teams with collective autonomy and responsibility to plan, manage, and execute tasks interdependently to achieve their goals, ­313–314 self-management, 99, 105 self-promotion, 488 self-serving bias Tendency to take more personal responsibility for success than for failure, 134 self-transcendence, 44, 44, 46 semantic memory, 125 sender, in communication, 340, 340 sequential task interdependence, 315 serenity, 263 servant-leadership Focuses on increased service to others rather than to oneself, ­519–521, 520 sexual harassment pervasiveness and costs of, 398–399 Problem-Solving Application, 52, 65–66 Problem-Solving Application Case, 503–504 types of, 399 sexual orientation, 142, 150 shareholders balanced scorecard and, 625–626 decision making and, 446 as force for change, 642–643 sick-leave pay, 171–172 signature strengths Positive human traits that influence thoughts, feel- ings, and behaviors and provide a Organizational Behavior: A Practical, Problem-Solving Approach I-18 GLOSSARY/SUBJECT INDEX gl os sa ry /s ub je ct in de x who work together for the time required for task completion or to fulfill their responsibilities, 309 collaboration in, 324–327 effective and high-performing, 321–324 empowerment of, 477–479, 478 implications of, 328–329 interdependence of, 315–316, 316 Legal/Ethical Challenge, 334–335 military, 297 Organizing Framework, 297 Problem-Solving Application, 325–326 Problem-Solving Application Case, 333–334 rewards and, 229, 324, 325 self-assessments, 302, 309, 311 social loafing in, 312–313, 312 team players, 311–312 teamwork competencies, 309–310, 311 three Cs of, 321–324 types of, 313–314 versus groups, 299–300, 299 technology. See also social media conflict and, 391–399 cyber-bullying, 397–398 electronic performance monitoring, 213–214 as force for change, 641–642 organizational structure and, 614 Problem-Solving Application, 33–34 virtual interviews, 129, 363 virtual teams, 314, 315 telecommuting Allows employees to do all or some of their work from home, using advanced telecommu- nications technology and Internet tools to send work electronically from home to the office, and vice versa, ­62–63, 393, 393, 608 temperance A shared belief in showing restraint and control when faced with temptation and provocation, 281 Theory of Planned Behaviour, 51–53, 51 Theory X A pessimistic view of employees: They dislike work, must be monitored, and can be motivated only with rewards and punishment (“carrots and sticks”), 164 Theory Y A modern and positive set of assumptions about people at work: They are self-engaged, committed, responsible, and creative, 164 Thinking, Fast and Slow (Kahneman), 425 T tacit knowledge Information we gain through experience that is difficult to express and formalize, 431 target in person perception, 125, 126–127, 126 in systems model of change, 652 task dependency, 299, 299 task identity, in job characteristics model, 188 task interdependence The degree to which team members depend on each other for information, materials, and other resources to complete their job tasks, 315 Taskmaster bosses, 81 task-oriented leadership in behavioral models, 516–517 in contingency models, 524–525 in trait theories, 512–513, 512 task roles Enable the work group to define, clarify, and pursue a common purpose, 301, 302 task significance, in job characteristics model, 189 task structure The amount of structure contained within tasks performed by the work group, 524, 527 tattoos, and impression management, 496–497 team adaptive capacity (adaptabil- ity) The ability to make needed changes in response to demands put on the team, ­323–324 team charter A document detailing members’ mutual expectations about how the team will operate, allocate resources, resolve conflict, and meet its commitments, 298, 321 team composition The collection of jobs, personalities, knowledge, skills, abilities, and experience levels of team members, ­322–323 team identity, 298 team performance strategies Delib- erate plans that outline what exactly the team is to do, such as goal setting and defining particular member roles, tasks, and responsi- bilities, ­321–322 teams Collections of individuals whose tasks and responsibilities depend on the other members, are collectively accountable for the performance and outcomes associated with their work, and strategic plan Outlines the organiza- tion’s long-term goals and the actions necessary to achieve them, 567 organizational design and, 613 in systems model of change, 651 strategic skills, in leaders, 514 strategy map A visual representation of a company’s critical objectives and the crucial relationships among them that drive organizational performance, ­627–628, 628 stress generational differences in, 658 good versus bad, 658–659 job satisfaction and, 65 job stress, 658, 659–662, 660 outcomes of, 662 sources of, 659 trust and, 318 stress management coping strategies, 662, 663, 669–670 as emotion management, 112 implications of, 672–673 Organizing Framework, 637 stressors Environmental characteris- tics that cause stress, 57, 659 structural empowerment Transfers authority and responsibilities from management to employees, 475 subcultures, of organizational cultures, 565 subjective norm, 51, 53 success in new job, 579 in resistance to change, 657 self-efficacy in, 97 Superman bosses, 81 suppression, in diversity management, 149 surface-level characteristics Those that are quickly apparent to inter- actants, such as race, gender, and age, 136 surprise, and resistance to change, 656 sustainability A company’s ability to make a profit without sacrificing the resources of its people, the community, and the planet, ­554–555 SWOT analysis, 651 symptom management Coping strategies that focus on reducing the symptoms of stress, including relaxation, meditation, medication, and exercise, 662 systems model of change application of, 665–666 description of, 648–652, 648 Organizational Behavior: A Practical, Problem-Solving Approach I-19GLOSSARY/SUBJECT INDEX glossary/subject index Schwartz’s theory, 44–47, 44, 46 self-assessment, 47 versus attitudes, 48, 49 variable pay, 233–235, 233, 234 variable rewards, 242 verbal recognition, 171 vertical dyad, 534 vertical loading, 188 virtual interviews, 129, 363 virtual reality (VR), 641 virtual structure One whose members are geographically apart, usually working with e-mail and other forms of information technology, but that generally appears to cus- tomers as a single, unified organi- zation with a real physical location, ­610–611, 612 virtual teams Teams that work across time, space, and organizational boundaries to achieve common goals, 314, 314, 315, 483 virtual work, 594, 608 virtuousness What individuals and organizations aspire to be when they are at their very best, 282 vision A long-term goal that describes what an organization wants to become, 567, 649 in leadership, 511, 530 in organizational change, 567, 649–651 in team charter, 298 voice climate Climate in which employees are encouraged to freely express their opinions and feelings, 178 voice The discretionary or formal expression of ideas, opinions, sug- gestions, or alternative approaches directed to a specific target inside or outside of the organization with the intent to change an objection- able state of affairs and to improve the current functioning of the organization, 177 VR (virtual reality), 641 W walking meditation, 272, 272 waypower The ability to see one or more paths to achieve a goal, even when faced with adversity, 274 well-being The combined impact of five elements—positive emotions, engagement, relationships, meaning, and achievement (PERMA), 283 intentions and behaviors will affect you, 317 benefits of, 317–318, 317 in giving negative feedback, 223 in group cohesiveness, 307 in high-quality connections, 265 repairing, 320, 320, 498–499 self-assessment, 319 types of, 318 U unconscious thought, 425–426 underemployment Working at jobs that require less education than attained, 144 underperformance, coping with, 663 unethical behavior causes of, 17, 18 cheating, 11–12, 17–18 confronting, 20 by job applicants, 18–19 in negotiations, 413–414, 413 versus illegal, 13–14 unfreezing stage of change, 647, 647 unions, 382, 642–643 unity of command principle  Specifies that each employee should report to only one manager, 597 upward spirals of positivity Positive behaviors, feelings, and attitudes that generate the same in others in a continually reinforcing process, 262, 264 V valence Describes the positive or negative value people place on outcomes, 180 value attainment Satisfaction that results from the perception that a job allows for fulfillment of an individual’s important values, 62 value orientation, 442 values Abstract ideals that guide our thinking and behavior across all situations, 44 dynamics of, 47 generational differences in, 47 implications of, 70 Legal/Ethical Challenge, 504–505 in organizational climate, 280–281 in organizational commitment, 55 in organizational culture, 553–554, 562–563 Organizing Framework, 42 Problem-Solving Application Case, 73–74 thought processes critical thinking, 8, 424 intuitive versus analytical, 425–426 360-degree feedback Individuals compare perceptions of their own performance with behaviorally specific (and usually anonymous) performance information from their manager, subordinates, and peers, ­215–216 3-Step Problem Solving Approach, 21–22, 31 time duration, of groups versus teams, 299, 299 tiredness Typically physical and short- term and is resolved by rest and sleep, 660 tolerance for ambiguity, 442 in diversity management, 149 top-down job design, 185, 185, 186–189 total rewards Rewards encompassing not only compensation and ben- efits, but also personal and profes- sional growth opportunities and a motivating work environment that includes recognition, job design, and work–life balance, 230, 230 touch, in communication, 345 traditionalist generation, 143, 152 training and development core self-evaluation use, 103 organizational culture change and, 568, 569 self-efficacy and, 99 trait approach Attempts to identify personality characteristics or inter- personal attributes that differenti- ate leaders from followers, 512 transactional leadership Focuses on clarifying employees’ role and task requirements and providing followers with positive and negative rewards contingent on performance, 516 transformational leadership Lead- ers who transform their followers to pursue organizational goals over self-interests, ­530–533, 531 transgender Applies to anyone whose gender identity or gender expression is different from sex at birth, 150 transparency in communication, 341–342 in performance monitoring, 214 trust The willingness to be vulnerable to another person, and the belief that the other person will consider the impact of how his or her Organizational Behavior: A Practical, Problem-Solving Approach I-20 GLOSSARY/SUBJECT INDEX gl os sa ry /s ub je ct in de x employee engagement, 43, 56–59 employee surveys of, 54 job satisfaction (See job satisfaction) organizational commitment, 54–56 perceived organization support, 59 workspace change over time, 593 open office design, 623–624, 624 organizational culture change and, 567, 568 work teams, 313. See also teams glass ceiling, 140–141 leadership traits, 514 work flow, and organizational culture change, 568, 571–572 work–life conflict The perception that expectations and demands between work and nonwork roles are mutually incompatible, ­391–394 workplace attitudes An outcome of various OB-related processes, including leadership, 48 whistle-blowers, 16–17, 41 willpower The determination to achieve a goal, 274 withdrawal cognitions An individual’s overall thoughts and feelings about quitting, 65 women on boards of directors, 138 career-family balance, 147 career navigation help, 150 communication patterns, 350–351 family leave for, 394 Organizational Behavior: A Practical, Problem-Solving Approach I-21 nam e index A Acho, Sam, 86 Ackoff, Russell, 29–30 Acton, Brian, 419 Adams, J. Stacey, 174, 174 Ajzen, I., 51–53, 51 Alexandra, Martins, 108 Allen, Herb, III, 274 Allen, R. W., 488 Almonte, Linda, 17 Alsop, R., 143 Amortegui, Jessica, 190 Anand, N., 605, 612 Anchor, Shawn, 252 Andreesen, Marc, 228 Angelou, Maya, 366 Ariely, Dan, 428 Aristotle, 447, 447 Armstrong, Lance, 11 Ashforth, B. E., 578 Augustine, Amy, 554 B Babcock, Linda, 408 Bagley, Constance, 445 Bandura, A., 97 Barra, Mary, 570 Barrick, Murray R., 88 Baselga, Jose, 13–14 Bass, Bernard, 530 Bates, S., 95 Bazerman, Max, 17, 18 Bell, C. H., Jr., 653 Bell, Madeline, 444 Beltran, Ivan, 58–59 Benioff, Marc, 178, 281–282, 518–519 Bentley, T., 397 Bergh, Chip, 59 Bernanke, Ben, 14 Bertolini, Mark, 270 Bezos, Jeff, 21, 443 Bi, Wenfen, 177 Biles, Simone, 182, 183 Blades, Wendy, 522 Blatter, Sepp, 13 Block, Keith, 519 Bloomberg, Michael, 151 Bodgas, Meredith, 394 Bodish, Zachary, 430 Boire, Ronald, 525–526, 633 Bolander, W., 480 Bono, 521 Bossidy, Larry, 6, 625 Boyatzis, Richard E., 105 Bradford, Laurence, 581 Branson, Riochard, 551 Braun, Clare, 589 Brin, Sergey, 566 Brody, Nina, 515 Brooks, Alison Wood, 347 Brown, K. A., 133 Brown, Larry, 335 Bruschi, Tedy, 568 Bullard, L. G., 311 Burns, Tom, 614 Buss, Dale, 543 C Cabraser, Elizabeth, 85, 85 Cameron, K., 255–256, 559 Campbell, Kevin, 406, 409 Campion, M. A., 514 Carli, Linda, 141 Carroll, Susan T., 570 Carter, Rebekah, 361 Castillo-Frick, Iliana, 393 Cately, B., 397 Ceulemans, Terry, 303 Challenger, John, 357 Charan, Ram, 6 Chen, Mengyan, 177 Chen, Steve, 570 Cheng, Andria, 633 Christensen, Clayton, 5 Chua, Celestine, 358 Cialdini, Robert, 484, 484 Clark, Susie, 249 Clark, Wesley, 472, 473 Cohen-Charash, Y., 177 Cohen, Steven, 14 Colquitt, J. A., 177 Conlon, D. E., 177 Cook, Tim, 431 Coomes, Steve, 117 Cornell, Andrew, 111–112 Cosier, Richard A., 401 Cote, Joseph A., 480 Cox, Chris, 419 Curry, Steph, 102 Cushing, Heather, 519–520 D Daft, Richard L., 342, 604–605, 605, 612 Dalgaard, Lars, 320 Danehy, Jake, 555 Dao, David, 375–376 Dara Khosrowshahi, 98 Darwin, Charles, 429 Davenport, Christopher, 543 Davey, Liane, 322 De Bono, Edward, 424 Deci, Edward, 168 Degraff, J., 559 Devine, Tom, 16 Diess, Herbert, 306, 306 Dimon, Jaime, 151 Donald, C. G., 383 Drucker, Peter, 551 Dudley, Bob, 237 Duke, Mike, 217–218 Duncum, Karen, 386 Durant, Kevin, 102 E Eagly, Alice, 141 Easterbrook, Steve, 561 Ebbers, Bernie, 13 Edelman, Richard, 318 Edwards, Trevor, 503 Eichinger, R., 10 Einstein, Albert, 22 Eisenberg, Julia, 315 Enderwick, Barry, 543 Engelbert, Cathy, 394 Esteri, Mike, 628 Extremera, N., 108 Ezzedeen, Souha R., 392 F Fassina, N. E., 177 Faury, Guillaume, 645 Felder, R. M., 311 Feldman, Daniel, 574–577, 575 Fernández-Berrocal, P., 108 Fertitta, Tillman, 107 Festinger, Leon, 51 Fiedler, Fred, 523–525, 524 Finelli, C. J., 311 Fishbach, A., 208 Fishbein, M., 51–53, 51 Fitzpatrick, Ryan, 86 Fogleman, Joyce, 522 Ford, M. T., 177 Foy, Claire, 481 Frankiewicz, Becky, 3 Frankl, Viktor, 286 Frazier, Kennety, 178 Fredrickson, Barbara, 261–262, 263, 267, 283 French, W. L., 653 Frieden, Tom, 293 Frier, Jon, 59 Frizell, Sam, 628 Fugate, Mel, 242 G Gardenswartz, Lee, 136, 136 Gardner, D., 397 Gardner, Howard, 83, 84 Gary, Loren, 21 Gasparro, Annie, 628 Gates, Bill, 89, 603 Geim, Andre, 303 Gerwig, Kathy, 275 Organizational Behavior: A Practical, Problem-Solving Approach I-22 NAME INDEX na m e in de x Locke, Edwin, 183–184 Locken, M., 136 Lofquist, L. H., 60 Lombardo, M., 10 Loughry, M. L., 311 Lowings, Tony, 471 Luthans, Fred, 274 Lynch, William, 526, 633 M Mackey, John, 566, 600 Macklemore, 510 Madden, Jack, 590 Madison, D. L., 488 Madoff, Bernie, 13 Madonna, 510 Malinkosk, Adam, 270 Marchionne, Sergio, 644 Marks, Raylene, 545 Maron, Todd, 543 Maslow, Abraham, 164–165 Mason, Andrew, 644–645, 645 Mason, R. O., 440 Mathieu, J. E., 478 Maulik, Pete, 122 Mayes, B. T., 488 Mayfield, Baker, 86 Maynard, M. T., 478 Mazur, Laura, 255, 255 McClelland, David, 165–168 McGirt, Ellen, 521 McGregor, Douglas, 164 McInally, Pat, 86 McKee, Annie, 105 McKelvey, Miguel, 504–505 McNulty, Keith, 94 Meister, J. C., 143 Merchant, Christina, 409 Meyer, M., 256 Michaels, Paul S., 28 Milken, Michael, 13 Miller, C. C., 431 Mitchell, Cameron, 167, 167 Molinaro, Vince, 621 Moonves, Les, 467–468 Morgenson, F. P., 514 Morin, Estelle, 108 Morris, Donna, 224 Morrison, Ann, 138 Moss, Jeffrey, 319 Mosseri, adam, 419 Mount, Michael K., 88 Muhammad, R. S., 552 Muilenburg, Dennis, 332–333 Mullenweg, Matt, 129 Mumford, T. V., 514 Munoz, Oscar, 375–376 Murray, Alan, 551 Musk, Elon, 543–544 Jing Jin, 108 John, Leslie K., 347 Johnson, Kevin, 571 Johnson, Lori, 220 Jonas, Adam, 589 Jones, D. A., 177 Jones, Karen Sparck, 87 Jones, Paul Tudor III, 259 Jordan, Jason, 234–235 Joseph, Dana L., 108 K Kahneman, D., 425, 431 Kalanick, Travis, 106 Kaplan, Robert, 625, 627 Kast, F. E., 601 Kelley, David, 621 Kelley, Harold, 132 Kelly, Gary, 162, 555 Kempczinski, Chris, 604 Kendricks, Sam, 266, 266 Kets de Vries, Manfred. F. R., 455 Khan, Sal, 91, 91 Khanna, Ro, 172 Khosrowshahi, Dara, 101 King, Bert T., 524 Kingsbury, Kliff, 352 Kinicki, A., 184, 202, 552, 564 Klein, G., 431 Knight, Philip, 619–620 Kotick, Bobby, 562–563 Kotter, John, 652, 653 Koum, Jan, 419 Kouzes, Jim, 515 Kreiz, Ynon, 469 Krieger, Mike, 419 Krishnan, Aparna, 315 Kroc, Roy, 430 Krzanich, Brian, 644 L Lalicker, Greg, 231 Lambert, Mary, 510 Lamm, Julia, 183 Landry, Michael, 13 Landry, Tracey, 13 Larkin, C., 396 Latham, Gary, 183–184 Lay, Kenneth, 13, 19 Layton, R. A., 311 Lee, Christopher, 217 Legere, John, 551 Lehrer, J., 451 Leissner, Tim, 490 Lengei, Robert H., 342 Levy, David, 666 Lewin, Kurt, 647–648 Lewis, Ryan, 510 Gibb, J. R., 349 Gilson, L. L., 478 Ginsburg, Ruth Bader, 89, 89, 151 Goldie, Dan, 91 Goleman, Daniel, 105, 107 Gomez, Selena, 470 Gore, Bill, 607–608 Gorsky, Alex, 140 Gottfredson, R. K., 325 Graf, Nikki, 143 Greenblatt, Robert, 666 Greenleaf, Robert, 519 Grenny, Joseph, 367 Grossman, Mindy, 125 Grote, Christoph, 617 Guido, John, 151 Gurchiek, K., 19 Gwin, Bonnie, 138 H Hackett, James, 589 Hackman, J. Richard, 188–189, 188 Hao, Zhichao, 177 Harrington, William, 197 Hartnell, C. A., 564 Hastings, Justin, 569 Hastings, Reed, 224, 444, 530, 531, 532 Haubegger, Christy, 492 Haven, Sam, 471 Healy, Maura, 293 Heffernan, Margaret, 385 Heider, Fritz, 132 Helgemo, Geir, 11 Hinkin, T. R., 470 Hochstein, B., 480 Hoffman, Reid, 582–583 Holder, Eric, 14 Holmes, Elizabeth, 13, 39–40 Holmes, Kat, 139 Honda, Soichiro, 620 Hori, Roxanne, 10 Horowitz, Ben, 274 House, Robert, 526–529, 528 Hurley, Chad, 570 Huseby, Michael, 526 I Igielnik, Ruth, 143 Imafidon, Anne-Marie, 83, 83 Ireland, R. D., 431 J Jacobson, K. J. L., 202 James, G., 112 Janis, Irving L., 449 Jenner, Kylie, 470 Jewell, Sally, 649 Organizational Behavior: A Practical, Problem-Solving Approach I-23NAME INDEX nam e index Shellenbarger, S., 369, 451 Shkreli, Martin, 16 Simon, Herbert, 427, 428–430 Singer, William, 12, 13 Singleton, R., 396 Skilling, Jeff, 13, 19 Skinner, B. F., 236–237, 237 Sloan, Tim, 248 Smircich, L., 556 Sonnenfeld, Jeffrey, 544 Sorrell, Martin, 644 Spacey, Kevin, 65 Spears, L. C., 520 Spector, P. E., 177 Spreitzer, Gretchen, 255–256, 257 Stalker, G. M., 614 Stankey, John, 666 Stapleton, Claire, 487 Sternberg, Robert J., 84–85 Stevens, Kory, 162–163 Stevens, Mallory, 162–163 Streufert, S., 524 Strong, Charlie, 673 Stumpf, John, 247 Su, Lisa, 620 Swiercz, Paul M., 392 Swinney, Dabo, 516–517 Systom, Kevin, 419 T Tadin, Jen, 234 Takata, Shigehisa, 13, 499 Tanaka, Hisai, 499 Tanaka, Hisao, 13 Taneja, C., 396 Tannen, Deborah, 350 Taylor, Frederick, 186 Taylor, Johnny C., 398 Tenbrunsel, Ann, 17, 18 Tetrick, L. E., 177 Thakor, A. V., 559 Thibodeaux, Wanda, 449 Thomas, Helena Cooper, 397 Thomas, R. Roosevelt, Jr., 148 Thomson, Jimmy, 361 Thorndike, Edward L., 236 Tindell, Kip, 258 Tippett, Elizabeth, 247 Tolstedt, Carrie, 247 Toombs, L. A., 396 Toor, Patty Jo, 213 Trenberth, L., 397 Tuckman, Bruce, 305–307 Tushman, M. L., 648 U Uggerslev, K. L., 177 Q Queen Latifah, 510 Quinn, R. E., 559 R Rahim, M. A., 402, 403 Ralston, J. D., 383 Ramalho, Nelson, 108 Rankin, Dennis, 151 Reid, Grant, 29 Reina, Dennis, 320, 320 Reina, Michelle, 320, 320 Renwick, P. A., 488 Reynolds, Justin, 369 Riensche, Ben, 437–438 Riggio, Leonard, 525–526, 633–634 Rimes, Shonda, 491 Risley, Amy, 341–342 Robbins, J. M., 177 Robertson, Jessica, 255, 255 Robinson, Adam, 537 Rometty, Ginni, 443 Ronaldo, Cristiano, 470 Rosener, J. B., 136 Rosenthal, M., 369 Rosenzweig, J. E., 601 Rousmaniere, Dana, 369 Rowe, A. J., 443 Rowe, Anita, 136, 136 Ruppert, Michelle, 75 Ryan, Joe, 258 Ryan, Richard, 168 S Sackler, Richard, 293 Sadler-Smith, E., 431 Saitta, Frank, 476 Salzmann, Ben, 559 Sánchez-Álvarez, N., 108 Sanders, Bernie, 172 Sandusky, Jerry, 334–335 Scanlon, Jessica, 188 Schein, Edgar H., 301, 565, 566 Schmucker, D. G., 311 Schnatter, John, 117–118 Schrage, M., 211 Schriesheim, C. A., 470 Schroeder, J., 208 Schwartz, S. H., 44–47, 46 Schwenk, Charles R., 401 Scivicque, Chrissy, 10 Seligman, Martin, 283 Senge, Peter, 601 Sepinwall, Amy, 462 Sepúlveda, Andrés, 442 Shaw, George Bernard, 339 Shefy, E., 431 Muti, Richard, 180 Mycoskle, Blake, 559, 650–651 N Nadella, Satya, 619 Nadler, D. A., 648 Namie, Gary, 396 Nanus, Burt, 530 Nassar, Larry, 334–335 Nayar, Vineet, 216 Nevarez, Michelle, 107 Newman, Daniel A., 108 Newsom, Gavin, 434–435 Ng, K. Y., 177 Norton, David, 625, 627 Novoselov, Konstantin, 303 O Obama, Michelle, 350 Ohland, M. W., 311 Oldham, Greg, 188–189, 188 Ostro, Maurice, 349 Ostroff, C., 552 Ou, A. Y., 564 Ozmen, Eren, 98 O’Driscoll, M., 397 O’Leary, R. S., 406, 409 P Page, Larry, 89, 566 Palihapitiya, Chamath, 420 Palmer, Darren, 589 Pan, Xiaofu, 177 Parakilas, Sandy, 420 Parker, Kim, 143 Parker, Mark, 503 Parneros, Demos, 525–526, 633–634 Parsons, Bob, 625 Patak, Kim, 58 Pauling, Linus, 453 Pearce, Bernadine, 75 Perrone, Marc, 172 Peterson, S. J., 202 Phillips, Shashauna, 172 Pitino, Rick, 335 Plepler, Richard, 666 Plouffe, C. R., 480 Pomeranz, H. R., 311 Porath, C., 257 Porter, C. O. L. H., 177 Porter, Jane, 581 Porter, L. W., 488 Porteus, Ann, 302 Posner, Barry, 515 Price, Dan, 569–570 Prussia, G. E., 202 Pryor, M. G., 396 Pscheid, Julian, 550 Pulakos, Elaine, 201 Organizational Behavior: A Practical, Problem-Solving Approach I-24 NAME INDEX na m e in de x Woehr, D. J., 311 Wojcicki, Anne, 169 Wood, Lowell, 453, 453 Word, April, 571 Y Yammarino, F. J., 531 York, Travis, 187 Z Zappacosta, Marco, 571 Zucker, Jeff, 666 Zuckerberg, Mark, 21, 89, 419–420 Webb, Suzanne F., 383 Weber, Jim, 667–668 Weber, Max, 530 Weiss, D. J., 60 Welch, Jack, 606 Welch, Paula, 425 Wesson, M. J., 177 Wilkins, Christian, 86 Williams, Lori, 609 Williams, Teoka, 159 Willyerd, K., 143 Winterkorn, Martin, 183 Witherspoon, Reese, 491 V Valencia, Pamela, 403 Van Petten, V., 495 Vitale, Nancy, 269 Vitale, Susan, 7 Vroom, Victor, 179–182 W Waldman, D. A., 531 Walker, Brian, 609 Walton, Sam, 73 Watson, Shiona, 317 Organizational Behavior: A Practical, Problem-Solving Approach I-25 A Abbott, 187 Activision Blizzard, 562–563 Acuity, 559 Adobe Systems, 189, 224, 421 Aetna, 269 Afni, Inc., 519–520 Agilent Technologies, 151 Airbnb, 47, 387–388, 469 Airbus SE, 460–461, 645 Alcoa, 617 Allegiant Airlines, 238 Alzheimer’s Association, 567 Amazon customer perspective and, 626 employee motivation, 168, 172, 195–196 external change forces, 643 influence tactics, 482 Whole Foods acquisition, 260 AMD, 620 American Airlines, 643 American Express, 146, 394 Apollo Education Group, 446 Apple, 157, 431 Arthrex, 150 Atlassian, 230 AT&T, 147, 665–666 Automattic, Inc., 129 B BAE, 151 Bank of America (BoA), 394 Baptist Health South Florida, 230 Barnes & Noble, 525–526, 633–634 Bayer Company, 292 Beaumont Hospital, 159 Best Buy, 451 Big 5 Corporation, 148 Big Brothers Big Sisters, 580 Boeing, 332–333, 610, 610 Bridgewater Associates LP, 339 Brooks Sports, 667–668 C CalSTRS, 642 Carnival Cruise Lines, 438 Caterpillar, 567 CBS, 467–468 Ceres, 554 Chicago Symphony Orchestra, 180 Chipotle, 641 Cisco Systems, 56, 146 The Citadel, 591 Claire’s, 545 Coca Cola Company, 150, 361–362 Columbia University, 227 Comcast, 576 Cornell Iron Works, 111–112 Corning, 618 Costco Wholesale Corp., 476 Cotopaxi, 626–627 CSAA Insurance Group, 258 D Deloitte, 205, 300, 394 Domino’s Pizza, 354–355 Drexel Burnham Lambert, 13 Drexel University, 430 Dropbox, 189 Dr Pepper Snapple Group, 627–628, 628 E Edelman, 187 Emerson, 187 Enron, 13, 19 Entrepreneurial Giving, 349 Experian, 569 EY, 394 F Facebook conflict within, 419–420 culture of, 553 employee diversity, 157–158 employee productivity, 354 employee surveys, 54 ethics scrutiny, 21 Fahrenheit 212, 122 Fair Food Program (FFP), 406–407 Fair Harbor Clothing, 555 Felicis Ventures, 225, 225 FIFA, 13 Florida Hospital Celebration Health, 213 Forbes Coaches Couneil, 307 Ford Motor Company, 270, 589–591 Four Seasons, 626 Freese and Nichols, 58 Frito-Lay, 356 G Gallagher, 234 Gallup, 278 The Gap, 616, 626 Genentech, 230, 269, 270 General Electric (GE), 270, 451, 505 General Motors, 429, 570 Gigster, 609 Ginger.io, 440 Girl Scouts, 234, 235 Goldman Sachs Group, 144, 150, 489–490 Google conflict resolution, 421 culture of, 265, 390, 454 decision making in, 451 employee diversity, 157–158 employee protests, 487 external change forces, 643 founders, 566 norms of, 303 Gravity Payments, 569–570 Graycor Industrial Constructors, 626, 627 Groupon, 644–645, 645 Grupo Bimbo, 560, 561 H HCL Technologies, 216 Headspace, 269 Herman Miller, 609 Hilcorp, 231 Hilton Hotels, 55 Hobby Lobby, 505 Homewood Suites, 476 Hot Dog Marketing, 188 Houston Independent School District, 232 HSBC Holdings, 187 Hudson Yards, 482 I IBM, 314, 443, 505 IDEO, 621–622 Inova Health System, 570 Insight Timer, 269 Instagram conflict within, 419–420 employee productivity, 354 mission statement, 649 social media influencers, 469–470 work space, 568 Integra Gold Corp., 355–356 Intel, 451 InterContinental Hotels Group (IHG), 515 Interface Inc., 650 Intermex Wire Transfer, 214 International Space Station, 326–327 Intuit, 421 J JANA Partners, 642 Jet.com, 129 John Deere, 625–626 Johnson & Johnson, 206 JPMorgan Chase & Co., 150–151 J&S Professional Pharmacy, 522 Juniper Networks, 621 Just Capital, 259 K Kaiser Permanent, 227, 275 Kentucky Fried Chicken (KFC), 184, 498 Kering SA, 554 Khan Academy, 91 com pany index Organizational Behavior: A Practical, Problem-Solving Approach I-26 COMPANY INDEX co m pa ny in de x Theranos, 13, 39–40 3-M, 303 Thumbtack, Inc., 571 Time Warner, 665–666 T.M. Landry College, 12, 13 T-Mobile, 58–59, 310, 551 TOMS shoes, 559, 650–651 Toshiba, 13, 498, 499 Toyota, 477–478 Toys-R-Us, 676–677 Trader Joe’s, 570 Tupperware, 469 23andMe, 169 Twitter, 576 Tyson Foods, 173 U Uber, 106, 642 UberEats, 490 Ulta Beauty, 469 United Airlines, 375–376 United States Army, 602–603 University of Phoenix, 446 University of Southern California (USC), 462 UPS, 213 V Volkswagen, 183, 306, 306 W Walmart culture of, 572 employee benefits, 171–172 employee technology use, 33–34 external change forces, 643 social consciousness, 258 values, 73–74 Walt Disney Company, 549 Wegmans Food Market, 230 Weight Watchers, 125 Wells Fargo, 247–248 Wendy’s, 406–407 WeWork, 504–505 WhatsApp, 419–420 Wheeler Machinery Co., 151 Whole Foods Market, 260, 600, 600 W. L. Gore, 595, 607–608 Workday, 230 WorldCom, 13 World Health Organization (WHO), 304 Y YouTube, 469–470, 570 Z Zappos, 220, 553, 576 Zipline, 641 PeraHealth, 440 Pinterest, 157 Procter & Gamble, 606, 621 Protiviti, 576 Publix Super Markets, 561 Purdue Pharma, 292–294, 446 PWC, 491 Q QuikTrip, 228 R RDMD, 440 REI (Recreational Equipment), 170 Riot Games, 576 Ritz Carlton, 58, 476 Robert W. Baird & Co., 175 RSM, 191 S Salesforce, 270 employee commitment, 56 employee voice, 178 empowering leadership in, 518–519 organizational practices, 281–282 stakeholder balance, 259 Schneider Electric, 169 SC Johnson, 165 Scopic Software, 610–611 Scotts Miracle-Gro, 505 Scripps Health, 582 Sears Holdings, 197 Seasons 52, 148 Seattle Children’s Hospital, 440 Sedexo, 300 Selectmen, 430 Shaw Industries Inc., 150 Sierra Nevada, 98 Skinfix, Inc., 341–342 Skype, 363 Sony, 604 Southwest Airlines culture of, 265, 555–557, 557 profit sharing, 162 unethical employee behavior, 14 Sprouts Farmers Market, 572–573 Starbucks, 570–571, 607 Stemettes, 83 Sweetgreen, 279–280, 649 T Taft shoe company, 162–163 Takada, 13, 498, 499 Take Care Health Systems, 515 Talent Board, 284 Target, 150 TED, 649 TEKsystems, 339 Kimberly-Clark, 284 Koch Industries, 505 L LEGO, 356, 621 Levi Strauss, 59 LinkedIn, 270, 354, 355 Lockheed Martin, 151 Logitech, 189, 190 Lumosity, 85 Lyft, 429 M Madoff Investment Securities, 13 Marjory Stoneman Douglas High School, 491 Marriott, 265 Mars, Inc., 28–29 Mary Kay, 469 MasterCard, 515 Mattel, 469, 644 Mayo Clinic, 159 McDonald’s, 52, 490, 561, 604 Menlo Innovations, 560 Merck, 178 Microsoft, 234, 451, 619 MIG Inc., 429 Mount Lemmon fire district, 151 N National Aeronautics and Space Administration (NASA), 251 National Football League (NFL), 187 National Rifle Association (NRA), 491 NaturaBrasil, 555 NCR Corp., 577 Netflix feedback in, 224 onboarding in, 576 pay disparities in, 481 sexual harassment response, 65–66 transformational leadership in, 530, 531, 532 New England Patriots, 568 New York University, 227 Nike, 503–504 Novelis, 567 O Ostro Minerals, 349 P Pacific Gas & Electric (PG&E), 434–435 Papa John’s Pizza, 117–118 Parkey Dewey, 319 Patagonia, 553, 649 PayPal, 582–583 Cover About the Author Preface Brief Contents Contents Chapter 1 Chapter 2 Chapter 3