Organizational Behavior

Securing Competitive Advantage

Second Edition

John A. Wagner III and

John R. Hollenbeck

R Routledge Taylor & Francis Group

NEW YORK AND LONDON

Contents

Preface: Competing for Advantage xvii

PART I Introduction I

1 Organizational Behavior 3 Defining Organizational Behavior 5

Micro Organizational Behavior 6 Meso Organizational Behavior 6 Macro Organizational Behavior 6

Contemporary Management Issues 6 Workforce Diversity 6 Team Productivity 7 Organizational Adaptability 7 International Growth and Development 7 Ethics 7

Patting Organizational Behavior Knowledge to Work 8 Diagnosis 9 Solution 9 Aetion 9 Evaluation 10 Active Problem Solving 10

Overview of This Book 10 Summary 11 Review Questions 11 Notes 12

Management and Managers 15 Defining Management 16

Three Attributes of Organizations 16 Formal Definition of Management 18

x Contents

What Managers Do 20 Managerial Jobs 20 Managerial Skills 22 Managerial Roles 23 The Nature ofManagerial Work 25

A Framework of Management Perspectives 26 1890-1940: The Scientific Management Perspective 27 1900-1950: The Administrative Principles Perspective 29 1930-1970: The Human Relations Perspective 31 1960-Present: The Open Systems Perspective 35 Emerging: The Positive Orßanizational Behavior Perspective 37 A Contingency Framework 38

Summary 39 Review Questions 39 Notes 40

PART II Micro Organizational Behavior 43

3 Managing Diversity and Individual Differences 45 Capitalizing on Individual Differences 46

Selecting 46 Training 47 Reengineering 48

Diversity in Physical Ability 49 Diversity in Cognitive Ability 50

Traditional Dimensions of Cognitive Ability 50 New Dimensions of Cognitive Ability 52

Diversity in Personality 53 The Big Five Framework 53 Making Personality Tests More Ejfective 55

Demographic Diversity 57 Legal and Political Aspects of Diversity 57 Competitive Aspects of Diversity 58

Summary 61 Review Questions 61 Notes 61

4 Perception, Decision Making, and Creativity 67 Perceptual Processes 69

Attention 71 Organization 71 Recall 74 Reducing Perceptual Problems 75

Contents xi

Decision-Making Proccsscs 76 The Rationell Decision-Making Model 77 The Administrative Decision-Making Model 84 Reducing Decision-Making Errors 86

Creativity in Decision Making 88 The Creative Process 88 Creative People 89 Creativity-Inducing Situations 90

Summary 91 Review Questions 92 Notes 92

5 Work Motivation and Performance 97 A Model of Motivation and Performance 99

Expectancy Theory 99 Supplemental Theories 101

Valence: Need Theories 101 Maslow's Need Hierarchy 102 Murray's Theory of Manifest Needs 104

Instrumentality: Learning Theories 105 Reinforcement Theory 105 Social Learning 109

Expectancy: Seif-Efficacy Theory 110 Self-Efficacy and Behavior 110 Sources of Self-Efßcacy III

Accuracy of Role Perceptions: Goal-Setting Theory 112 Important Goal Attributes 112 Goal Commitment and Participation 113 Goals and Strategies 114

Ability and Experience Revisited 116 Nonmotivational Determinants of Performance 116 Experience and Cyclical Effects 117

High-Performance Work Systems 118 Merit-Pay and Incentive Systems 118 Profit-Sharing and Cost-Savings Plans 120

Summary 122 Review Questions 122 Notes 122

6 Satisfaction and Stress 127 Defining Satisfaction and Stress 129

Satisfaction 129 Stress 130

xii Contents

Organizational Costs of Dissatisfaction and Stress 132 Performance at the Individual and Organizational Level 132 Healtb Care Costs 133 Absenteeism and Turnover 133 Low Organizational Commitment and Poor Citizenship 134 Workplace Violence and Sabotage 135

Sources of Dissatisfaction and Stress 136 Physical and Social Environment 136 Personal Dispositions 138 Organizational Tasks 138 Organization Poles 140

Eliminating and Coping with Dissatisfaction and Stress 142 Identifying Symptoms of Dissatisfaction and Stress 142 Eliminating Dissatisfying and Stressful Conditions 143 Managing Symptoms of Dissatisfaction and Stress 144

Summary 145 Review Questions 145 Notes 146

PART III Mfcso Organizational Behavior 151

7 Efficicncy, Motivation, and Quality in Work Design 153 The Efficiency Perspective 154

Methods Engineering 154 Work Measurement: Motion and Time Studies 155 Evaluating Industrial Engineering and the Efficiency Perspective 157

The Motivational Perspective 157 Horizontal Job Enlargement 157 Vertical Job Enrichment 159 Comprehensive Job Enrichment 160 Sociotechnical Enrichment 163 Evaluating the Motivational Perspective 165

The Quality Perspective 167 Quality Circles 167 Seif-Managing Teams 168 Automation and Robotics 169 Process Management 170 Evaluating the Quality Perspective 170

Summary 171 Review Questions 171 Notes 172

Contents xiii

8 Interdependence and Role Relationships 177 Patterns of Interdependence and Organizational Roles 178

Types of Interdependence 178 Implications of Interdependence 180 Role Talling and Role Making 180 Norms and Role Episodes 182

Communication Processes in Interdependent Relationships 186 Communication Messages and Media 186 Barriers to Effective Communication 188

Socialization to New Roles 189 Socialization Goals and Tactics 192 Designing Socialization Programs 194

Quality of Interpersonal Role Relationships 195 Equity and Social Comparisons 195 Distributive, Procedural, and Interactive Justice 196 Responses to Inequity 199 Managing Inequitable Situations 200

Summary 201 Review Questions 202 Notes 202

9 Group Dynamics and Team Effectiveness 207 Formation and Development of Croups 208

Group Formation 210 Group Development 213

Group versus Individual Productivity 215 Process Loss 216 Group Synergy 219

Keys to Team Effectiveness: Setting the Stage 220 Task Structure 221 Communication Structure 221 Group Composition 223

Keys to Team Effectiveness: Managing the Process 226 Motivation in Croups 226 Group Cohesiveness 228 Group Conflict 229

Summary 230 Review Questions 230 Notes 230

xiv Contents

10 Leadership of Croups and Organizations The Integrated Leadership Model 239 Universal Approaches to Leadership 241

Leader Traits 241 Leader Decision-Making Styles 242 Leader Behaviors 243 Transformational Leadership 244 Leader Irrelevance 245

Characteristics of Followers and Situations 246 Vertical Dyad Linkage 247 Life-Cycle Model 248 Substitutes for Leadership 250

Comprehensive Theories of Leadership 251 Fiedler's Contingency Theory 251 Vroom-Tetton Decision Tree Model 252 Path-Goal Theory 255

The Integrated Leadership Model Revisited 257 Summary 258 Review Questions 258 Notes 259

PART IV Macro Organizational Behavior

11 Power, Politics, and Conflict Power in Organizations 265

Interpersonal Sources of Power 266 Conformity Responses to Interpersonal Power 267 A Model of Interpersonal Power: Assessment 269 Structural Sources of Power 270 The Critical Contingencies Model: Assessment 272

Politics and Political Processes 273 Personality and Politics 274 Conditions That Stimulate Politics 274 Political Tactics 275 Managing Destructive Politics 276

Conflict in Organizations 278 Is Conflict Necessarily Bad? 278 Conditions That Stimulate Conflict 279 Effects of Conflict 280

Negotiation and Restructuring 281 Managing Diverging Interests 281 Managing Structural Interdependence 282

Summary 286 Review Questions 286 Notes 286

Contents xv

12 Structuring the Organization 291 Structural Coordination 292

Basic Coordination Mechanisms 292 Choosing among the Mechanisms 295

Departmentstion 298 Hierarchy and Centralization 300 Types of Organization Structure 301

Prebureaucratic Structures 301 Bureaucratic Structures 303 Postbureaucratic Structures 309

Summary 312 Review Questions 312 Notes 312

13 Technology, Environment, and Organization Design 315 An Adaptive Model of Organization Design 316

Organizational Effectiveness 316 Structural Alternatives 317 Structural Contingencies 320

Life-Cycle Contingencies: Age and Stage of Development 320 Inception Contingencies 322 Formalization and Elaboration Contingencies 323

Core Technology 323 The External Environment 328

Transformation Contingencies 333 Environmental Turbulence 335 Transaction Costs 336 Final Considerations 337

Summary 337 Review Questions 338 Notes 338

14 Culture, Change, and Organization Development 343 Organization Culture 344

Elements of Organization Culture 344 Managing Organization Culture 347

Change and Organization Development 349 Resistance to Change 350 Action Research 352

Organization Development Interventions 354 Interpersonal Interventions 355 Group Interventions 357 Intergroup Interventions 359 Organizational Interventions 361

xvi Contents

Evaluating Change and Development 363 Summary 365 Review Questions 365 Notes 366

PART V Conclusion 371

15 International Organizational Behavior 373 International Dimensions 373

Uncertainty Avoidance 374 Masculinity—Femininity 375 Individualism-Collectivism 375 Power Distance 376 Short-Term/Long-Term Orientation 377

Effects on Organizational Behavior 377 Cultural Trends: Four Scenarios 378 Organizational Effects 380 Cross-Cultural Differences 381

Managing International Differences 385 Summary 387 Review Questions 388 Notes 388

16 Evidence-Based Management: Critical Thinking and Continuous Learning 391 Learning Organization 391 Critical Thinking and the Scientific Process 394

Ways of Knowing 394 The Purposes of Science 395 The Interplay of Theory and Data 396 Characteristics of Good Theories and Good Data 399

Causal Inferences 402 Criteria for Inferring Cause 402 Designing Observations to Infer Cause 407

Generalizing Research Results 410 Sample, Setting, and Time 411 Facilitating Generalization 411

Linking Organizational Behavior Science and Practice 413 Summary 414 Review Questions 414 Notes 415

Index 417