Bam 410

925 North Spurgeon Street, Santa Ana, CA 92701 Phone: 714-547-9625 Fax: 714-547-5777
Text:
Author(s):
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Organizational Behavior
13th Edition, 2009
ISBN-10: 0136007171 ; 13: 9780136007173
Stephen P. Robbins & Timothy A. Judge
Pearson Prentice Hall
05/09
BAM 410
Organizational Theory and Behavior
Message From
the President
W
elcome to California Coast University. I hope you will nd this course
interesting and useful throughout your career.
This course was designed to meet the unique needs of students like you who are
both highly motivated and capable of completing a degree program through
distance learning.
Our faculty and administration have been involved in distance learning for over
almost forty years and understand the characteristics common to successful
students in this unique educational environment.
This course was prepared by CCU faculty members who are not only outstanding
educators but who have real world experience. They have prepared these
guidelines to help you successfully complete your educational goals and to get the
most from your distance learning experience.
Again, we hope that you will nd this course both helpful and motivating. We send
our best wishes as you work toward the completion of your course.
Sincerely,
Thomas M. Neal
President
All rights reserved. No part of this book may be reproduced or transmitted
in any form or by any means, electronic or mechanical, including photocopying,
recording or by any information storage and retrieval system without written
permission from the publisher, except for the inclusion of brief quotation
in review.

Copyright 2012 by California Coast University

Syllabus
vii
Course Number BAM 410
Course Title Organizational Theory and Behavior
Catalog Description This course emphasizes the relationships among individuals, groups,
organizations and society. A dynamic, systems approach to under-
standing and facilitating work relationships is examined. Emphasis is
given to the interaction of individual values, attitudes, needs, abili-
ties, traits, and motivation within teams and organizations.
Units of Credit 3 Units of Credit
Course Objectives Upon successful completion of this course, students will be able to:
Identify the challenges and opportunities managers have in
applying Organizational Behavior (OB) concepts.
Show how culture affects our understanding of intellectual
abilities, biographical characteristics, and learning.
Describe the main functions of communication.
Identify the six elements of an organizations structure.
Learning Resources Textbook: Organizational Behavior
13th Edition, 2009
Stephen P. Robbins & Timothy A. Judge
ISBN-10: 0136007171; 13: 9780136007173
All course examinations are based on the contents of the textbook
required for this course. To successfully complete the examinations,
you will need the textbook. You may rent the textbook from our Rental
Library or you may purchase the textbook from another source.
The Study Guide
The Study Guide was designed to help you further understand the
material in the textbook and master the course content. Each Study
Guide chapter corresponds to a chapter in the textbook.
Additional Readings and Online Resources
To help you to further understand this subject material, additional
readings and online resources related to this course are listed in this
syllabus.
The Library Information and Resources Network, Inc. (LIRN)
The Library Information and Resources Network (LIRN) is an online
library resource that provides access to multiple research databases.
Syllabus
viii
CCU doctoral candidates who enrolled in their program after
February 1, 2010 receive complimentary access to LIRN.
If you are a current student enrolled in another CCU program and
wish to request access to LIRN, you may do so for a one-time fee of
$25. Please contact the CCU Library to ll out a Request for Online
Library Resources form and submit it, with payment, to the
University. You will be emailed a condential identication number to
use for the remainder of your studies at CCU.
Supplementary Materials
Unit Examination Answer Sheets*
Final Examination Scheduling Form
*Master of Education and Doctor of Education students will not
receive unit exam answer sheets. Unit Examinations for these
programs require written responses.
Your Course Grade
Your grades on course examinations are determined by the percentage
of correct answers. The University uses the following grading system:
A = 90% 100% correct
B = 80% 89% correct
C = 70% 79% correct
D = 60% 69% correct
F = 59% and below correct
Your grade in this course will be based on the number of points you
earn. Grades are based on the percentage of points you earned out of
a total of 500 points:
Four Unit Examinations
100 points each 400 points total 80% of your grade
Final Examination
100 points 100 points total 20% of your grade
Mastering the Course Content
In order to successfully complete this course, we recommend that
you do the following before beginning:
Be sure that you have the correct edition of the course
textbook. Check the ISBN number of your textbook with the
ISBN number listed on the cover page of this Study Guide.
Syllabus
ix
Review the table of contents at the end of this syllabus.
You will only be responsible for the chapters in the textbook
that are listed in the table of contents.
Each Study Guide contains several components selected and
developed by the faculty to help you master the content of the
course. Each chapter in the Study Guide corresponds to a chapter in
the textbook. Study Guides vary depending on the course, but most
will include:
Learning Objectives
Overviews
Self Tests
Summaries
Key Terms
Critical Analysis Questions (Master and Doctoral
students only)
The most efcient way to complete this course is to read the
materials in both the Study Guide and textbook in the sequence in
which it appears, generally from beginning to end.
Read the Overviews and Summaries
Before reading a chapter of your textbook, review the corresponding
Learning Objectives, Overview, Key Terms and Summary sections in
the Study Guide. These were prepared to give you an overview of the
content to be learned.
Review the Self Test
After you have reviewed the Study Guide summaries, look at the
items on the Self Test. As you identify your areas of relative strength
and weakness, you will become more aware of the material you will
need to learn in greater depth.
Review the Critical Analysis (Master and Doctoral students only)
The Critical Analysis questions are designed to help you gain a deeper
understanding and appreciation for the course subject matter. This
section will encourage you to give additional thought to the topics
discussed in the chapter by presenting vignettes or cases with real
world relevance.
Read and Review the Chapter
Once you have the scope and organization of the chapter in mind,
turn to the corresponding chapter in the text and read the material
carefully. Keep the Learning Objectives, Self Test and/or Critical
Analysis questions in mind as you read.
Syllabus
x
Highlight important concepts and information in your Study Guide
and write notes in the Study Guide margins as you read. These notes
will help you study for the Unit and Final Examinations.
Check Your Mastery of Each Chapter
When you feel that you have mastered the concepts presented in the
chapter, complete the Study Guide Self Test and/or Critical Analysis
questions without referring to the textbook or your notes. Correct your
Self Test and review each Critical Analysis response using the Answer
Key and Solutions Guide provided in the Study Guide. Your results
will help you identify any areas you need to review.
Unit Examinations
Each course contains four Unit Examinations and a Final
Examination. Unit Examinations usually consist of 25 objective
(multiple choice or true/false) test questions as well as
comprehensive writing assignments selected to reect the
Learning Objectives identied in each chapter. For Master of
Education and Doctor of Education students, Unit Examinations
consist of Written Assignments only. Unit Examinations may be found
approximately every four to six chapters throughout your Study Guide.
Unit Examinations are open-book, do not require a proctor, and are
not timed. This will allow you to proceed at your own pace.
It is recommended that you check your answers against the material
in your textbook for accuracy.
Written Assignments
Each Unit Examination includes a written component. This
assignment may be in the form of written questions or case study
problems. The written assignment affords the student an opportunity
to demonstrate a level of subject mastery beyond the objective Unit
Examinations, which reects his/her ability to analyze, synthesize,
evaluate and apply his/her knowledge. The written assignment
materials are found immediately following each Unit Examination.
Written Assignment Requirements
Always include your name, student number, course number,

course title and unit number on each page of your written
assignment (this is for your protection in case your materials
become separated). Be sure to keep a copy for your records.
Begin each written assignment by identifying the question

number you are answering followed by the actual question
itself (in bold type).
Syllabus
xi
Use a standard essay format for responses to all questions

(i.e. an introduction, middle paragraphs and conclusion).
All responses must be typed double-spaced, using a

standard font (i.e. Times New Roman) and 12 point type
size for ease of reading and grading.
All online responses must be submitted as a MS Word

Document le only.
Written assignments are judged on the quality of the response in
regard to the question. Word count is NOT one of the criteria that is
used in assigning points to written assignments. However, students
who are successful in earning the maximum number of points tend to
submit written assignments that fall in the following ranges:
Undergraduate courses: 350 - 500 words or 1 - 2 pages.
Graduate courses: 500 - 750 words or 2 - 3 pages.
Doctoral courses: 750 - 1000 words or 4 - 5 pages.

Plagiarism
All work must be free of any form of plagiarism. Put written answers
into your own words. Do not simply cut and paste your answers from
the Internet and do not copy your answers from the textbook.
Plagiarism consists of taking and using the ideas, writings or
inventions of another, without giving credit to that person and
presenting it as ones own. This is an offense that the University takes
very serious. An example of a correctly prepared written response may
be found by visiting the Coast Connection student portal.
Citation Styles
The majority of your response should be your own original writing
based on what you have learned from the textbook. However, if you
choose to use outside material to answer a writing assignment
question, be sure to provide a reference (or citation) for the
material. The following points are designed to help you understand
how to provide proper references for your work:
References are listed in two places.
The rst reference is briey listed within your answer. This

includes identifying information that directs the reader to
your List of References at the end of your Written
Assignment.
The second reference is at the end of your work in the List of

References section.
Syllabus
xii
All references cited should provide enough identifying

information so that the reader can access the original
material.
For more detailed information on the proper use of citations, please
refer to the CCU Student Handbook located on the Coast Connection
student portal.
Submitting Your Unit Examinations by Mail
Send your completed Unit Examination along with any written
assignments to the following mailing address:
California Coast University
Testing Department
925 N. Spurgeon Street
Santa Ana, CA 92701
Submitting Your Unit Examinations via the Internet
Students may access the online testing features via the Coast
Connection student portal. Multiple choice Unit Examinations may be
completed and submitted online. After logging in to your online
account at www.calcoast-online.com, select the Testing link, then
select Complete Unit Exam. It is recommended that you complete the
Unit Examinations on the hard copy answer sheet rst, then transfer
the answers to the online answer sheet.
The written assignments for each Unit Examination may be submitted
online as well. After accessing the student portal, choose the Writing
Assignment link and then select Writing Assignment Submission. If
you will be submitting multiple Word documents, please upload and
submit them one at a time.
Repeating Examinations
After a Unit Examination grade has been posted, students have the
option of repeating the exam to improve their grade*. Each Unit
Examination may only be repeated once.
Requests to retake a Unit Examination will only be honored if the
Final Exam has NOT been sent.
Students may retake one Unit Examination per course, free of charge.
The cost for each additional, repeated exam will be $90. Payment
must be paid in full to the Accounting Department prior to repeating
unit exams.
Syllabus
xiii
*Master of Education and Doctor of Education students are not
eligible to retake Unit Exams. If you would like to improve your
grade, you may pay the current cost of tuition to retake the course.
Final Examination
Scheduling a Final Examination
Final Examination requests can be submitted via U.S. mail, online
through the Coast Connection student portal or by calling the Testing
Department at (714) 547-9625.
A Final Exam Scheduling Form is located on the last page of this
Study Guide. Please ll out all required elds and mail it to the
University.
If you would like to request a Final Exam online, log in to your
student account at www.calcoast-online.com and choose the Testing
link, then select Final Exam Scheduling.
Final Exams will only be sent if you have completed all four Unit
Examinations and submitted all four Writing Assignments.
Submitting Your Final Examination
Final Examinations can be submitted by mail, fax or online through
the student portal.
After you have completed your exam, you or your proctor can fax it to
the Grading Department at (714) 547-1451 or mail it to the
University. When faxing exams, please do not resize your fax.
For online submissions, once you have logged into the student portal,
click on the Testing tab and then choose either Proctored Final or
Non-Proctored Final. If your Final Exam was sent to your proctor,
then he or she will have to enter a password that was issued to them
on the Proctor Instruction Sheet for the course.
Online Final Exam submissions must be completed in one session;
you cannot save answers and go back to your exam later. We
recommend that you complete your Final Exam on paper rst, then
transfer the answers to your online answer sheet.
Syllabus
xiv
Proctors
The University requires that all Final Examinations except Associate
and Bachelors level elective courses be completed under the
supervision of a Proctor.
The purpose of the proctored Final Examination is to verify that you
are, in fact, the person who is enrolled in the course of study. It is
also to verify that you are completing the Final Examination without
the aid of any outside assistance. During the proctored Final
Examination, you may use your textbook and any notes you have
taken during the completion of your Unit Examinations. Your
designated Proctor will verify your identity and that you have
completed the Final Examination without any outside assistance. A
Proctor can be anyone EXCEPT an immediate family member,
someone who resides with you or a current/former CCU student.
Receiving Your Examination Grades
After your examinations are scored, a grade report will be mailed to
you or you may arrange to have your grade e-mailed to you.
You may also check your grades on the Coast Connection student
portal. Grades are normally posted and available for review within 5
business days.
Most students receive their grades by regular mail within two weeks
after the University receives their examination.
If you do not receive a grade report within two weeks, please contact
the Testing Department and a duplicate grade report will be sent to
you.
Your Overall Grade Point Average (G.P.A.)
In addition to receiving a passing grade for each course, all students
must maintain a required overall G.P.A. in order to graduate.
Undergraduate students need an overall G.P.A. of 2.0 (C) on a 4.0
scale. Graduate and Doctoral students need an overall G.P.A. of 3.0
(B) on a 4.0 scale.
A = 4 grade points
B = 3 grade points
C = 2 grade points
D = 1 grade point
F = 0 grade points
Syllabus
xv
Students who do not meet the overall G.P.A. requirement by the end
of their program must pay the current cost of tuition to repeat courses
until they improve their overall G.P.A.
Overall course grades of F will be displayed on your Degree Plan
and count as 0 units completed. You must pay to retake these
courses.
Doctor of Education students must repeat any courses in which the
overall course grade is a D or F.
Be sure to keep a copy of all work you submit to the University.
Syllabus
xvi
If you have any questions about how to proceed through the course or regarding any California Coast
University policies and procedures, the easiest way to get help is to e-mail or phone the University.
University ofce hours are Monday through Friday from 8:30 a.m. to 4:00 p.m., Pacic Standard Time.
California Coast University
925 N. Spurgeon Street, Santa Ana, California 92701
Phone: (714) 547-9625 Fax: (714) 547-5777
Test Answer Sheet Fax Line: (714) 547-1451
e-mail: testing@calcoast.edu
Dont forget: You are not alone! We are here to help you achieve your dream!
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Syllabus
xvii
Learning Objectives
The learning objectives for this course are listed below:
CHAPTER 1
1. Demonstrate the importance of interpersonal skills in the workplace.
2. Describe the managers functions, roles and skills.
3. Dene organizational behavior (OB.)
4. Show the value to OB of systematic study.
5. Identify the major behavioral science disciplines that contribute to OB.
6. Demonstrate why there are few absolutes in OB.
7. Identify the challenges and opportunities managers have in applying OB concepts.
8. Compare the three levels of analysis in this books OB model.
CHAPTER 2
1. Contrast the two types of ability.
2. Dene intellectual ability and demonstrate its relevance to OB.
3. Identify the key biographical characteristics and describe how they are relevant to OB.
4. Dene learning and outline the principles of the three major theories of learning.
5. Dene shaping and show how it can be used in OB.
6. Show how culture affects our understanding of intellectual abilities, biographical charac-
teristics, and learning.
CHAPTER 3
1. Contrast the three components of an attitude.
2. Summarize the relationship between attitudes and behavior.
3. Compare and contrast the major job attitudes.
4. Dene job satisfaction and show how it can be measured.
5. Summarize the main causes of job satisfaction.
6. Identify four employee responses to dissatisfaction.
7. Show whether job satisfaction is a relevant concept in countries other than the United
States.
CHAPTER 4
1. Dene personality, describe how it is measured, and explain the factors that determine
an individuals personality.
2. Describe the Myers-Briggs Type Indicator personality framework and assess its strengths
and weaknesses.
3. Identify the key traits in the Big Five personality model.
4. Demonstrate how the Big Five traits predict behavior at work.
5. Identify other personality traits relevant to OB.
6. Dene values, demonstrate the importance of values, and contrast terminal and instru-
mental values.
7. Compare generational differences in values and identify the dominant values in todays
workforce.
8. Identify Hofstedes ve value dimensions of national culture.
Syllabus
xviii
CHAPTER 5
1. Dene perception and explain the factors that inuence it.
2. Explain attribution theory and list the three determinants of attribution.
3. Identify the shortcuts individuals use in making judgments about others.
4. Explain the link between perception and decision making.
5. Apply the rational model of decision making and contrast it with bounded rationality and
intuition.
6. List and explain the common decision biases or errors.
7. Explain how individual differences and organizational constraints affect decision making.
8. Contrast the three ethical decision criteria.
9. Dene creativity and discuss the three-component model of creativity.
CHAPTER 6
1. Describe the three key three elements of motivation.
2. Identify four early theories of motivation and evaluate their applicability today.
3. Apply the predictions of cognitive evaluation theory to intrinsic and extrinsic rewards.
4. Compare and contrast goal-setting theory and management by objectives
5. Contrast reinforcement theory and goal-setting theory.
6. Demonstrate how organizational justice is a renement of equity theory.
7. Apply the key tenets of expectancy theory to motivating employees.
8. Compare contemporary theories of motivation.
9. Explain to what degree motivation theories are culture bound.
CHAPTER 7
1. Describe the job characteristics model and evaluate the way it motivates by changing the
work environment.
2. Compare and contrast the three main ways jobs can be redesigned.
3. Identify three alternative work arrangements and show how they might motivate employ-
ees.
4. Give examples of employee involvement measures and show how they can motivate
employees.
5. Demonstrate how the different types of variable-pay programs can increase employee
motivation.
6. Show how exible benets turn benets into motivators.
7. Identify the motivational benets of intrinsic rewards.
CHAPTER 8
1. Differentiate emotions from moods and list the basic emotions and moods.
2. Discuss whether emotions are rational and what functions they serve.
3. Identify the sources of emotions and moods.
4. Show the impact emotional labor has on employees.
5. Describe affective events theory and identify its applications.
6. Contrast the evidence for and against the existence of emotional intelligence.
7. Apply concepts about emotions and moods to specic OB issues.
8. Contrast the experience, interpretation, and expression of emotions across cultures.
Syllabus
xix
CHAPTER 9
1. Dene group and differentiate between different types of groups.
2. Identify the ve stages of group development.
3. Show how role requirements change in different situations.
4. Demonstrate how norms and status exert inuence on an individuals behavior.
5. Show how group size affects group performance.
6. Contrast the benets and disadvantages of cohesive groups.
7. Contrast the strengths and weaknesses of group decision making.
8. Compare the effectiveness of interacting, brainstorming, nominal, and electronic meeting
groups.
9. Evaluate evidence for cultural differences in group status and social loang, as well as
the effects of diversity in groups.
CHAPTER 10
1. Analyze the growing popularity of using teams in organizations.
2. Contrast groups and teams.
3. Compare and contrast four types of teams.
4. Identify the characteristics of effective teams.
5. Show how organizations can create team players.
CHAPTER 11
1. Identify the main functions of communication.
2. Describe the communication process and distinguish between formal and informal
communication.
3. Contrast downward, upward, and lateral communication and provide examples of each.
4. Contrast oral, written, and nonverbal communication.
5. Contrast formal communication networks and the grapevine.
6. Analyze the advantages and challenges of electronic communication.
7. Show how channel richness underlies the choice of communication channel.
CHAPTER 12
1. Dene leadership and contrast leadership and management.
2. Summarize the conclusions of trait theories.
3. Identify the central tenets and main limitations of behavioral theories.
4. Assess contingency theories of leadership by their level of support.
5. Contrast the interactive theories path-goal and leadermember exchange.
6. Identify the situational variables in the leader-participation model.
7. Show how U.S. managers might need to adjust their leadership approaches in Brazil,
France, Egypt, and China.
Syllabus
xx
CHAPTER 13
1. Show how framing inuences leadership effectiveness.
2. Dene charismatic leadership and show how it inuences followers.
3. Contrast transformational leadership and transactional leadership and discuss how
transformational leadership works.
4. Dene authentic leadership and show why ethics and trust are vital to effective leadership.
5. Identify the three types of trust.
6. Demonstrate the importance of mentoring, self-leadership, and virtual leadership to our
understanding of leadership.
7. Identify when leadership may not be necessary.
CHAPTER 14
1. Dene power and contrast leadership and power.
2. Contrast the ve bases of power.
3. Identify nine power or inuence tactics and their contingencies.
4. Show the connection between sexual harassment and the abuse of power.
5. Distinguish between legitimate and illegitimate political behavior.
6. Identify the causes and consequences of political behavior.
7. Apply impression management techniques.
8. Determine whether a political action is ethical.
9. Show the inuence of culture on the uses and perceptions of politics.

CHAPTER 15
1. Dene conict.
2. Differentiate between the traditional, human relations, and interactionist views of conict.
3. Outline the conict process.
4. Dene negotiation.
5. Contrast distributive and integrative bargaining.
6. Apply the ve steps of the negotiation process.
7. Show how individual differences inuence negotiations.
8. Assess the roles and functions of third-party negotiations.
9. Describe cultural differences in negotiations.
CHAPTER 16
1. Identify the six elements of an organizations structure.
2. Identify the characteristics of a bureaucracy.
3. Describe a matrix organization.
4. Identify the characteristics of a virtual organization.
5. Show why managers want to create boundary-less organizations.
6. Demonstrate how organizational structures differ and contrast mechanistic and organic
structural models.
7. Analyze the behavioral implications of different organizational designs.
8. Show how globalization affects organizational structure.
Syllabus
xxi
Bolman, Lee G. and Deal, Terrence E. Reframing Organizations: Artistry, Choice, and Leadership.
Jossey-Bass. 1997.
Kotter, John P. and Cohen, Dan S. The Heart of Change: Real-Life Stories of How People Change
Their Organizations. Harvard Business School Press. 2002.
Leadership the Eleanor Roosevelt Way (Prentice Hall, 2002)
Suggested Readings
Syllabus
xxii
Suggested Online Readings
www.obweb.org
www.shrm.org
http://www.aimd.org/
Table of Contents
xxiii
Syllabus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i-xxvi
Unit One
Chapter 1: What Is Organizational Behavior?. . . . . . . . . . . . . . . . . . . . . . 1-13
Chapter 2: Foundations of Individual Behavior. . . . . . . . . . . . . . . . . . . . 14-25
Chapter 3: Attitudes and Job Satisfaction. . . . . . . . . . . . . . . . . . . . . . . . 26-35
Chapter 4: Personality and Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36-47
Unit 1 Examination Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Unit 1 Examination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49-54
Unit 1 Writing Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55-56
Unit Two
Chapter 5: Perception and Individual Decision Making . . . . . . . . . . . . . . 57-68
Chapter 6: Motivation Concepts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69-81
Chapter 7: Motivation: From Concepts to Applications . . . . . . . . . . . . . . 82-91
Chapter 8: Emotions and Moods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92-102
Unit 2 Examination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104-109
Unit Three
Chapter 9: Foundations of Group Behavior . . . . . . . . . . . . . . . . . . . . . . 112-124
Chapter 10: Understanding Work Teams . . . . . . . . . . . . . . . . . . . . . . . . 125-135
Chapter 11: Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136-147
Chapter 12: Basic Approaches to Leadership . . . . . . . . . . . . . . . . . . . . . 148-158
Unit Four
Chapter 13: Contemporary Issues in Leadership. . . . . . . . . . . . . . . . . . . 168-180
Chapter 14: Power and Politics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181-191
Chapter 15: Conict and Negotiation. . . . . . . . . . . . . . . . . . . . . . . . . . . 192-203
Chapter 16: Foundations of Organization Structure. . . . . . . . . . . . . . . . . 204-215
Table of Contents
xxiv
Final Examination Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
Final Examination Scheduling Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228
Objectives
1
Chapter Number One
What Is Organizational Behavior?
Learning Objectives
Upon successful completion of this chapter, you should be able to:
1. Demonstrate the importance of interpersonal skills in the
workplace.
2. Describe the managers functions, roles and skills.
3. Dene organizational behavior (OB.)
4. Show the value to OB of systematic study.
5. Identify the major behavioral science disciplines that con-
tribute to OB.
6. Demonstrate why there are few absolutes in OB.
7. Identify the challenges and opportunities managers have in
applying OB concepts.
8. Compare the three levels of analysis in this books OB model.
Instructions to Students
Read pages 1-41 of your textbook
Reference: Organizational Behavior
by Stephen P. Robbins & Timothy A.
Judge, 13th Edition, 2009.
Overview
2
Managers need to develop their interpersonal or people skills if they are going to be effective in
their jobs. Organizational behavior (OB) is a eld of study that investigates the impact that individ-
uals, groups, and structure have on behavior within an organization, and it applies that knowledge
to make organizations work more effectively. Specically, OB focuses on how to improve productiv-
ity; reduce, absenteeism, turnover, and deviant workplace behavior; and increase organizational
citizenship behavior and job satisfaction.
We all hold generalizations about the behavior of people. Some of our generalizations may provide
valid insights into human behavior, but many are erroneous. Organizational behavior uses sys-
tematic study to improve predictions of behavior that would be made from intuition alone. But,
because people are different, we need to look at OB in a contingency framework, using situational
variables to moderate cause-effect relationships.
Organizational behavior offers both challenges and opportunities for managers. It offers specic
insights to improve a managers people skills. It recognizes differences and helps managers to
see the value of workforce diversity and practices that may need to be changed when managing in
different countries. It can improve quality and employee productivity by showing managers how
to empower their people, design and implement change programs, improve customer service, and
help employees balance work-life conicts. It provides suggestions for helping managers meet
chronic labor shortages. It can help managers to cope in a world of temporariness and to learn
ways to stimulate innovation. Finally, OB can offer managers guidance in creating an ethically
healthy work climate.
Key Terms
3
The key terms listed below are terms you should be familiar with. Write your denition below each
item. Check your answers at the end of this chapter.
Managers:
Organization:
Organizational Behavior:
Turnover:
Job Satisfaction:
Summary
4
I. THE IMPORTANCE OF INTERPERSONAL SKILLS
A. Understanding OB Helps Determine Manager Effectiveness
B. Organizational Benets of Skilled Managers
II. WHAT MANAGERS DO
A. Introduction
Importance of Developing Managers Interpersonal Skills
o Companies with good reputations have a big advantage in attracting high performing
employees.
o Creating a more pleasant work environment makes good economic sense.
B. Management Functions
Modern Management
o Planning
o Organizing
o Leading
o Controlling
C. Management Roles
1. Introduction
Henry Mintzbergten management roles (Exhibit 11)
2. Interpersonal Roles
Figurehead
Leader
Liaison
3. Informational Roles
Monitor
Disseminator
Spokesperson
4. Decisional Roles
Entrepreneur
Disturbance handler
Resource allocator
Negotiator role
D. Management Skills
1. Introduction: Robert KatzThree essential management skills
2. Technical Skills
3. Human Skills
4. Conceptual Skills
E. Effective Versus Successful Managerial Activities
Fred Luthans & associatesmanagers engage in four managerial activities
o Traditional management. (Decision making, planning & controlling)
o Communication. (Routine information & paperwork)
o Human resource management. (Motivating, disciplining, stafng, etc.)
o Networking. (Socializing, politicking, interacting w/ outsiders)
Successful managersthose promoted most quickly (Exhibit 12)
o Networking largest relative contribution to success
o Human resource management least relative contribution
Effective managersperformance & commitment to employees
o Communicationlargest relative contribution
o Networkingleast relative contribution
F. A Review of the Managers Job - Managers must develop people skills if they are to be suc-
cessful
Summary
5
III. ENTER ORGANIZATIONAL BEHAVIOR
A. Introduction
Denition: Organizational Behavior (often abbreviated as OB) is a eld of study that inves-
tigates the impact that individuals, groups, and structure have on behavior within organi-
zations for the purpose of applying such knowledge toward improving an organizations
effectiveness.
IV. COMPLEMENTING INTUITION WITH SYSTEMATIC STUDY
A. Introduction
Each of us is a student of behavior.
Focus is on systematic study rather than reliance on intuition alone.
Behavior is generally predictable.
Behavior is usually intended to be rational.
B. Evidence-Based Management
Managerial decisions based on scientic evidence
C. Managers Should Use All Three Approaches
Intuition
Faddism
Systematic study
V. DISCIPLINES THAT CONTRIBUTE TO THE OB FIELD
A. Introduction (Exhibit 13)
B Psychology
C. Social Psychology
D. Sociology
E. Anthropology
VI. THERE ARE FEW ABSOLUTES IN OB
A. Introduction
Few, if any, simple and universal principles that explain organizational behavior
VII. CHALLENGES AND OPPORTUNITIES FOR OB
A. Introduction
There are many challenges and opportunities today for managers to use OB concepts.
B. Responding to Globalization
1. Increased Foreign Assignments
No longer constrained by national boundaries
Managers are likely to nd themselves in a foreign assignment.
2. Working with People from Different Cultures
Globalization affects a managers people skills.
Cultural diversity within organizations
3. Coping with Anticapitalism Backlash
Economic values not universally transferable
4. Overseeing Movement of Jobs to Countries with Low-Cost Labor
Under pressure to hold costs down
5. Managing People During the War on Terror

Summary
6
C. Managing Workforce Diversity
1. Introduction
Exhibit 14 shows how organizations are becoming more diverse in gender, race, and eth-
nicity.
2. Embracing Diversity
3. Changing U. S. Demographics
Melting pot assumption replaced by one that recognizes and values differences.
4. Implications
Workforce diversity has important implications for management practice.
D. Improving Quality and Productivity
Industries have excess capacity
Quality Management Programs and continuous improvement).
Process reengineering
E. Improving Customer Service
Employee attitudes are directly related to customer satisfaction.
F. .Improving People Skills
People skills are essential to managerial effectiveness.
G. Stimulating Innovation and Change
Managers must stimulate employees creativity & tolerance for change.
H. Coping with Temporariness
Organizations must be exible and fast to survive.
Workers need to update knowledge and skills.
Managers and employees must learn to cope with temporariness
I. Working in Networked Organizations
Challenges associated with online employment
J. Helping Employees Balance Work-Life Conicts
Creation of global workforce
Technology and anyplace anytime
Balancing work and life demands
K. Creating a Positive Work Environment
Focuses on human strengths and unlocked potential
L. Improving Ethical Behavior
Ethical dilemmas
Organizational responses including codes of ethics
VIII. COMING ATTRACTIONS: DEVELOPING AN OB MODEL
A. An Overview
Exhibit 15 The OB Model
Three levels of analysis: individual, group, systems
B. The Dependent Variables
1. Introduction
a. Productivity
b. Absenteeism
c. Turnover
d. Deviant Workplace Behavior
e. Organizational Citizenship Behavior
f. Job Satisfaction
Summary
7
C. The Independent Variables
1. Introduction
OB is a set of increasingly complex building blocks.
2. Individual-Level Variables
3. Group-Level Variables
4. Organizational System-Level Variables
D. Toward a Contingency OB Model (Exhibit 16)
Contingency variables often mediate the relationship between the independent and depen-
dent variables.
IX. SUMMARY AND IMPLICATIONS FOR MANAGERS
Need to develop interpersonal skills.
OB investigates the impact of individuals, groups and structure on an organization.
OB focuses on improving productivity; reducing absenteeism and turnover, and increa-
ing employee citizenship and job satisfaction.
Self Test
8
Multiple Choice Questions (Circle the correct answer)
1) Which of the following is least likely to be considered a manager?
A) the mayor of a large city
B) an IT technician who enables communication between all of a companys employees
C) an administrator in charge of fund-raising activities in a non-prot organization
D) a doctor who acts as head of the physiotherapy department at a public hospital
E) a lieutenant leading an infantry platoon

2) Determining how tasks are to be grouped is part of which management function?
A) planning
B) contemplating
C) controlling
D) organizing
E) leading

3) While the Functions, Roles, Skills, and Activities approaches to management all dif-
fer, they all recognize that effective and successful managers must develop which of
the following?
A) ability to network
B) people skills
C) technical skills
D) efciency
E) entrepreneurialism

4) What do the authors of the textbook advise?
A) make predictions of individuals behaviors based on others actions
B) disregard your intuition because its usually wrong and will lead to incorrect assump-
tions
C) dont trust preconceived notions unless you have substantive evidence to back them
up
D) use evidence as much as possible to inform your intuition and experience
E) rely on research since it is almost always right and researchers dont make mistakes

5) Which of the following is an example of being an efcient company?
A) creating the highest customer satisfaction ratings
B) meeting the production schedule
C) obtaining the highest market share
D) operating at the lowest possible cost while yielding a higher output
E) maximizing diversity at high cost
Self Test
9
6) What term is used to describe voluntary and involuntary permanent withdrawal from
an organization?
A) downsizing
B) social atrophy
C) turnover
D) absenteeism
E) truancy

You are bringing together faculty from different behavioral disciplines to author a new
textbook in organizational behavior. Represented are professors from psychology, sociol-
ogy, social psychology, anthropology, political science, and industrial engineering.
7) The faculty member from ________ should furnish information about personality,
learning, and motivation.
A) industrial engineering
B) anthropology
C) psychology
D) political science
E) sociology

8) The manager at a construction site observes that he is spending a great deal of time
interviewing prospective employees. This is due to the large amount of absenteeism
and turnover among his skilled workers. On questioning exiting employees he dis-
covers that many of them quit because they feel the workplace is too dangerous. In
particular, several foremen have stated that the need to get the job done quickly is
more important than a few rules, and have gone as far as to mock the courage of
workers who question this attitude.

What is not a dependent variable that the manager wishes to explain in this case?
A) absenteeism
B) deviant workplace behavior
C) turnover
D) the skill level of his workers
E) time spent interviewing new hires

9) Which of the following is an independent variable which is likely to be the root cause
of the workplace deviant behavior the manager has observed?
A) Absenteeism is found to rise on those days when particularly hazardous work is being
performed.
Self Test
10
B) Foremen are paid signicant bonuses if the workers they supervise complete their
tasks quickly.
C) Several of the foremen are close personal friends who have very similar attitudes to
work and safety.
D) Penalties for ignoring safety standards are not heavy, amounting to the equivalent of
only several hours pay.
E) The structure of the organization does not involve all workers in the decision making
process.

10) Allison and Gail both are studying for a nal exam. Both have a goal of attaining a
grade of 91 or better. Gail studied 6 hours and made a grade of 92. Allison studied
for 9 hours and also made a grade of 92.

Which of the students was effective?
A) insufcient information to judge
B) neither Gail nor Allison
C) both Gail and Allison
D) only Allison
E) only Gail
Answer Keys
11
Key Term Denitions
Managers: Individuals who achieve goals through other people.
Organization: A consciously coordinated social unit, composed of two or more people, that func-
tions on a relatively continuous basis to achieve a common goal or set of goals.
Organizational Behavior: (often abbreviated as OB) is a eld of study that investigates the impact
that individuals, groups, and structure have on behavior within organizations for the purpose of ap-
plying such knowledge toward improving an organizations effectiveness.
Turnover: Voluntary and involuntary permanent withdrawal from an organization.
Job Satisfaction: A positive feeling about ones job resulting from an evaluation of its characteris-
tics.
Answer Keys
12
Answers to Self Test
1) B
2) D
3) B
4) D
5) D
6) C
7) C
8) D
9) B
10) C
Notes
13
Objectives
14
Chapter Number Two
Foundations of Individual Behavior
Learning Objectives
1. Contrast the two types of ability.
2. Dene intellectual ability and demonstrate its relevance to
OB.
3. Identify the key biographical characteristics and describe
how they are relevant to OB.
4. Dene learning and outline the principles of the three major
theories of learning.
5. Dene shaping and show how it can be used in OB.
6. Show how culture affects our understanding of intellectual
abilities, biographical characteristics, and learning.
Overview
15
This chapter looked at three individual variablesability, biographical characteristics, and learn-
ing. Lets now try to summarize what we found and consider their importance for a manager who is
trying to understand organizational behavior.
Ability: Ability directly inuences an employees level of performance. Given managements desire
to get high-performing employees, what can be done?
First, an effective selection process will improve the t. A job analysis will provide information
about jobs currently being done and the abilities that individuals need to perform the jobs ad-
equately. Applicants can then be tested, interviewed, and evaluated on the degree to which they
possess the necessary abilities.
Second, promotion and transfer decisions affecting individuals already in the organizations employ
should reect the abilities of candidates. As with new employees, care should be taken to assess
critical abilities that incumbents will need in the job and to match those requirements with the
organizations human resources.
Third, the t can be improved by ne-tuning the job to better match an incumbents abilities.
Often, modications can be made in the job that, while not having a signicant impact on the jobs
basic activities, better adapt it to the specic talents of a given employee. Examples would be
changing some of the equipment used or reorganizing tasks within a group of employees.
Biographical Characteristics: Biographical characteristics are readily observable to managers.
However, just because theyre observable doesnt mean they should be explicitly used in manage-
ment decisions. We also need to be aware of implicit biases we or other managers may have.
Learning: Any observable change in behavior is prima facie evidence that learning has taken
place. Positive reinforcement is a powerful tool for modifying behavior. By identifying and reward-
ing performance-enhancing behaviors, management increases the likelihood that those behaviors
will be repeated. Our knowledge about learning further suggests that reinforcement is a more effec-
tive tool than punishment. Although punishment eliminates undesired behavior more quickly than
negative reinforcement does, punished behavior tends to be only temporarily suppressed rather
than permanently changed. And punishment may produce unpleasant side effects, such as lower
morale and higher absenteeism or turnover. In addition, the recipients of punishment tend to be-
come resentful of the punisher. Managers, therefore, are advised to use reinforcement rather than
punishment.
Key Terms
16
Ability:
General mental ability (GMA):
Social-learning theory:
OB Mod:
Summary
17
I. INTRODUCTION
Intelligence is but one characteristic that people bring with them to organizations.
The chapter looks at how biographical characteristics and ability affect employee perfor-
mance and satisfaction.
II. ABILITY
A. Intellectual Abilities
Needed to perform mental abilitiesthinking, reasoning, problem solving
Jobs differ in the demands placed on intellectual abilities.
Dimensions of intellectual ability (Exhibit 21)
Recent research in the area of multiple intelligences
B. Physical Abilities
Less skilled and more standardized jobs
Nine basic abilities involved in the performance of physical tasks (Exhibit 22)
C. The Ability-Job Fit
Employee performance is enhanced when there is a high ability-job t.
When the t is poor, employees are likely to fail.
III. BIOGRAPHICAL CHARACTERISTICS
A. Introduction
Start with factors that are readily available in an employees personnel le. There is a siz-
able amount of research on these factors (age, gender, length of service).
B. Age
It is tempting to assume that age is also inversely related to absenteeism.
o There is a widespread belief that productivity declines with age and that individual
skills decay over time.
o The relationship between age and job satisfaction is mixed.
C. Gender
There are few, if any, important differences between men and women that will affect their
job performance, including the areas of:
o There is no signicant difference in job productivity between men and women.
o Women are more willing to conform to authority.
o There is a difference between men and women in terms of preference for work sched-
ules.
o Absence and turnover rates.
o Womens quit rates are similar to mens.
o The research on absence consistently indicates that women have higher rates of absen-
teeism.

D. Race
Race is considered biological heritage.
Workers generally favor peers of their own race.
E. Tenure
There is a positive relationship between tenure and job productivity.
There is a negative relationship between tenure to absence.
The evidence indicates that tenure and satisfaction are positively related.
F. Religion
Islam is especially problematic in the workplace in this post-9/11 world.
Summary
18
G. Sexual Orientation
Federal law does not protect against discrimination (but state or local laws may).
Domestic partner benets are important considerations.
H. Gender Identity
Relatively new issue transgender employees.
IV. LEARNING
A. Introduction
Learning occurs all the time.
If we want to explain and predict behavior, we need to understand how people learn.
B. A Denition of Learning
Any relatively permanent change in behavior that occurs as a result of experience
Denition has several components:
o It involves change.
o Change must be relatively permanent.
o It is concerned with behaviors.
o Some form of experience is necessary.
C. Theories of Learning:
1. Classical Conditioning
It is passivesomething happens, and we react in a specic way. It is elicited in response
to a specic, identiable event.
It is voluntary rather than reexive.
2. Operant Conditioning
Operant conditioning argues that behavior is a function of its consequences. People learn
to behave to get something they want or to avoid something they do not want.
3. Social Learning
Individuals can also learn by observing what happens to other people, by being told about
something, as well as by direct experiences.
Four processes determine the inuence that a model will have on an individual:
o Attentional processes
o Retention processes
o Motor reproduction processes
o Reinforcement processes
D. Shaping: A Managerial Tool
1. Introduction
Attempting to mold individuals by guiding their learning in graduated steps
2. Methods of Shaping Behavior
Positive reinforcement
Negative reinforcement
Punishment
Extinction
Both positive and negative reinforcement result in learning.
Reinforcement, whether it is positive or negative, has an impressive record as a shaping
tool.
A review of research ndings:
o Some type of reinforcement is necessary to produce a change in behavior.
o Some types of rewards are more effective than others.
o Timing of reinforcement is critical.
Summary
19
3. Schedules of Reinforcement
Two major types of reinforcement schedules are:
o Continuous
o Intermittent.
Evidence indicates that the intermittent or varied form of reinforcement tends to promote
more resistance to extinction than does the continuous form.
An intermittent reinforcement can be of a ratio or interval type.
A reinforcement can also be classied as xed or variable.
Intermittent techniques can be placed into four categories, as shown in Exhibit 25.
4. Reinforcement Schedules and Behavior
Continuous reinforcement schedules can lead to early satiation. Under this schedule, be-
havior tends to weaken rapidly when reinforcers are withheld.
Continuous reinforcers are appropriate for newly emitted, unstable, or low-frequency re-
sponses.
Intermittent reinforcers preclude early satiation because they do not follow every response.
They are appropriate for stable or high-frequency responses.
In general, variable schedules tend to lead to higher performance than xed schedules.
(Exhibit 24)
Variable-interval schedules generate high rates of response and more stable and consistent
behavior because of a high correlation between performance and reward. The employee
tends to be more alert since there is a surprise factor.
5. Behavior Modication
A classic study was conducted at Emery Air Freight (now part of Federal Express):
o This simple program of feedback and positive reinforcements saved the company
$2 million over a three-year period.
The typical OB Mod program follows a ve-step problem-solving model:
o Identifying critical behaviors
o Developing baseline data
o Identifying behavior consequences
o Developing and implementing an intervention strategy
o Evaluating performance improvement
OB Mod has been used by a number of organizations to improve employee productivity and
to reduce errors, absenteeism, tardiness, accident rates, and improve friendliness toward
customers.
6. Problems with OB Mod and Reinforcement Theory
OB Mod does not take into consideration peoples thoughts and feelings All stimuli may
not be motivated by a particular behavioral response

V. SUMMARY AND IMPLICATIONS FOR MANAGERS
A. Ability
B. Biographical Characteristics
C. Learning
Self Test
20
1) Which of the following is not a dimension of intellectual ability?
A) number aptitude
B) social aptitude
C) dynamic exibility
D) perceptual speed
E) spatial visualization

2) Which of the following statements is true?
A) Older employees have lower rates of unavoidable absence than younger workers.
B) Older employees are more likely to quit their job than younger workers.
C) Older employees are perceived to be more exible than younger workers.
D) Older employees generally have lower productivity than younger workers.
E) Older employees have lower rates of avoidable absence than younger workers.

3) Which of the following is a major problem in the use of ability tests for selection and
promotion of personnel?
A) Some individuals with high intelligence are poor test takers.
B) The tests are not reliable.
C) The tests may have an adverse impact on different racial and ethnic groups.
D) The tests fail to take into account the personality of the individual.
E) Women enjoy an unfair advantage on these tests.

4) In Pavlovs experiment, the bell was a/an ________.
A) unconditioned response
B) conditioned response
C) unconditioned stimulus
D) conditioned stimulus
E) none of the above

5) When Joe gets stressed he often drinks chamomile tea. This calms him since he as-
sociates chamomile tea drinking with happy visits with his grandmother in his child-
hood. The calm feeling brought on by the tea is an example of which of the following?
A) classical conditioning
B) shaping
C) social learning
D) operant conditioning
E) sensory learning
Self Test
21
6) Social learning theory would best describe the learning in what situation?
A) A man stops wearing brightly colored shirts to work after being teased for doing so by
his co-workers.
B) An employee works through lunch several days in a row after being told by her boss
that she will receive extra pay.
C) A postal workers pulse rate rises whenever she approaches a house where she has
been bitten by a dog before.
D) A man learns how to perform yoga by watching a videotape of a yoga teacher.
E) A child always addresses his grandmother politely after he is given candy as a reward
for his good manners.

7) What do we call the practice of reinforcing closer and closer approximations of a
desired behavior?
A) classical conditioning
B) social learning
C) aping
D) shaping
E) modeling

8) According to research, which of the following is a schedule of reinforcement that
promotes the greatest resistance to extinction?
A) continuous
B) xed interval
C) xed ratio
D) negative
E) variable interval

9) The application of reinforcement concepts to individuals in the work setting is
referred to as ________.
A) OB Mod
B) self-management
C) social modeling
D) classical conditioning
E) reengineering

You have decided to experiment with the relationship between reinforcement schedules
and maintaining desired employee behavior. You are interested in observing the differ-
ences between continuous and intermittent reinforcement and between the various types
of intermittent reinforcement schedules.

Self Test
22
10) Johns attendance has historically been unreliable and you have decided to use
reinforcement and compliment him when his attendance record shows improvement.
The most effective schedule of reinforcement will probably be ________.
A) punishment-based
B) variable-interval intermittent
C) shaped
D) xed-interval intermittent
E) continuous
Answer Keys
23
Key Term Denitions
Ability: An individuals capacity to perform the various tasks in a job.
General mental ability (GMA): An overall factor of intelligence, as suggested by the positive cor-
relations among specic intellectual ability dimensions.
Social-learning theory: The view that people can learn through observation and direct exposure.
OB Mod: The application of reinforcement concepts to individuals in the work setting.
Answer Keys
24
1) C
2) E
3) C
4) D
5) A
6) D
7) D
8) E
9) A
10) B
Notes
25
Objectives
26
Chapter Number Three
Attitudes and Job Satisfaction
Learning Objectives
1. Contrast the three components of an attitude.
2. Summarize the relationship between attitudes and behavior.
3. Compare and contrast the major job attitudes.
4. Dene job satisfaction and show how it can be measured.
5. Summarize the main causes of job satisfaction.
6. Identify four employee responses to dissatisfaction.
7. Show whether job satisfaction is a relevant concept in coun-
tries other than the United States.
Overview
27
Managers should be interested in their employees attitudes because attitudes give warnings of
potential problems and because they inuence behavior. Satised and committed employees, for
instance, have lower rates of turnover, absenteeism, and withdrawal behaviors. They also perform
better on the job. Given that managers want to keep resignations and absences downespecially
among their most productive employeestheyll want to do things that generate positive job atti-
tudes. As one review put it, A sound measurement of overall job attitude is one of the most useful
pieces of information an organization can have about its employees.
The most important thing managers can do to raise employee satisfaction is focus on the intrinsic
parts of the job, such as making the work challenging and interesting. Although paying employees
poorly will likely not attract high-quality employees to the organization, or keep high performers,
managers should realize that high pay alone is unlikely to create a satisfying work environment.
Creating a satised workforce is hardly a guarantee of successful organizational performance, but
evidence strongly suggests that whatever managers can do to improve employee attitudes will likely
result in heightened organizational effectiveness.
Key Terms
28
Attitudes:
Cognitive component:
Job Satisfaction:
Employee engagement:
Core self-evaluations:
Summary
29
I. ATTITUDES
A. Introduction
Evaluative statements; favorable or unfavorable concerning objects, people, events
B. What Are the Main Components of Attitudes? (See Exhibit 31)
Cognitive component
Affective component
Behavioral component
C. How Consistent Are Attitudes?
People seek consistency among their attitudes and between attitudes and behavior
Cognitive Dissonance Theory
Leon Festinger: Any incompatibility that an individual might perceive between two or
more attitudes or between behavior and attitudes.
o No individual can completely avoid dissonance.
o Individuals desire to reduce dissonance is determined by:
> Importance of the causal elements
> Degree of inuence individual has over elements
> Rewards that may be involved in dissonance
o Organizational Implications:
> The greater the dissonance, the greater the pressure to reduce it
D. Does Behavior Always Follow from Attitudes?
1. Introduction
Attitudes signicantly predict future behavior.
2. Moderating Variables:
Importance
Specicity
Accessibility
Social pressures
Direct experience
3. Self-Perception Theory
Attitudes are used to make sense out of an action that has already occurred.
E. What Are the Major Job Attitudes?
1. Introduction
Limited number of job-related attitudes are studied.
2. Job Satisfaction
3. Job Involvement
Psychological Empowerment
4. Organizational Commitment
Affective Commitment
Continuance Commitment
Normative Commitment
5. Other Job Attitudes
Perceived organizational support
Employee engagement
6. Are These Job Attitudes Really All That Distinct?
Attitudes are highly related to each other.
Summary
30
F. How Are Employee Attitudes Measured?
Employee behaviors are often based on perception.
Use of regular attitude surveys can alert management to potential problems.
G. What Is the Importance of Attitudes to Workplace Diversity?
Diversity programs are fairly widespread; particularly post 9/11; exercises that focus on
relationships with coworkers from Middle Eastern backgrounds and followers of Islamic
faith help in reducing negative attitudes.
II. JOB SATISFACTION
A. Measuring Job Satisfaction
Two widely used methods:
o Single global rating method
o Summation of job facets
B. How Satised Are People in Their Jobs? (Exhibit 32)
Most people are satised with their jobs in developed countries.
o Over the last 30 years the majority of U.S. workers have been satised with their jobs.
C. What Causes Job Satisfaction? (Exhibit 33)
Work that is challenging and stimulating
Personality and job satisfaction
D. The Impact of Dissatised and Satised Employees on the Workplace
1. Introduction
Responses to Job Dissatisfaction (Exhibit 34)
2. Job Satisfaction and Job Performance
Overall positive correlation
3. Job Satisfaction and OCB
Overall positive relationship when considering fairness
4. Job Satisfaction and Customer Satisfaction
Positive relationship
5. Job Satisfaction and Absenteeism
Moderate negative relationship
6. Job Satisfaction and Turnover
Moderate relationship
Depends in part on employee performance
7. Job Satisfaction and Workplace Deviance
Predictive of a range of behaviors
Unionization attempts
Substance abuse
Stealing at work
Tardiness
III. SUMMARY AND IMPLICATIONS FOR MANAGERS
o Employee attitudes can reect employee problems
o Consistent negative attitudes often lead to turnover
o The intrinsic part of a job is most important for employees
o Employees will seek to reduce any cognitive dissonance
Self Test
31
1) The belief that violence is wrong is an evaluative statement. Such an opinion con-
stitutes the ________ component of an attitude.
A) reactive
B) cognitive
C) reective
D) behavioral
E) affective

2) Any incompatibility between two or more attitudes or between behavior and attitudes
results in ________.
A) organizational dissonance
B) cognitive dissonance
C) values clarication
D) affective reactance
E) attitudinal clarication

3) Festinger argued that cognitive dissonance is ________.
A) physically painful
B) unpleasant
C) confounding
D) exhausting
E) monotonous

4) Festinger proposed that the desire to reduce dissonance is determined by three fac-
tors including the ________.
A) degree of inuence the individual believes he or she has over the elements
B) values of the elements creating the dissonance
C) awareness that dissonance exists
D) fact that values and attitudes will vary over the short term
E) degree of positive affect the person has toward the behavior

5) Of the following, the best predictor of turnover is ________.
A) organizational commitment
B) cognitive dissonance
C) affective dissonance
D) job satisfaction
E) job involvement
Self Test
32
6) Compared to people who have a negative core self-evaluation, people who have a
positive core self evaluation ________.
A) see their work as less fullling
B) are less likely to give up when confronting difculties
C) see their work as less challenging
D) are less satised with their jobs
E) are less likely to gravitate toward challenging jobs

7) Steve is unhappy with his job. He takes every possible vacation and sick day and
sometimes shows up for work late. He is expressing his dissatisfaction through
________.
A) voice
B) social voice
C) neglect
D) exit
E) loyalty

8) Which of the following is true regarding the relationship between satisfaction and ab-
senteeism?
A) There is a consistent positive relationship between the two.
B) There is a curvilinear relationship between the two.
C) There is a consistent negative relationship between the two.
D) No relationship can be established between the two.
E) When fairness is controlled for, there is a direct relationship between the two.

9) An important moderator of the satisfaction-turnover relationship is the ________.
A) employees level of performance
B) employees values and attitudes
C) organizations culture
D) employees level of workplace deviance
E) managements style

Employees at Acme Express are dissatised with working conditions, salary, and the gen-
eral attitude of management. Mark, Susan, and Toni are good friends who work at Acme,
yet each seems to be reacting differently to the problems at work.

10) Toni has decided that shell just get a new job and get away from the problem. Toni is
dealing with her dissatisfaction through ________.
A) voice
B) exit
C) loyalty
D) neglect
E) acceptance
Answer Keys
33
Key Term Denitions
Attitudes: Evaluative statements or judgments concerning objects, people, or events.
Cognitive component: The opinion or belief segment of an attitude.
Job Satisfaction: A positive feeling about ones job resulting from an evaluation of its characteris-
tics.
Employee engagement: An individuals involvement with, satisfaction with, and enthusiasm for the
work he or she does.
Core self-evaluations: Bottom-line conclusions individuals have about their capabilities, compe-
tence, and worth as a person.
Answer Keys
34
1) B
2) B
3) B
4) A
5) A
6) B
7) C
8) C
9) A
10) B
Notes
35
Objectives
36
Chapter Number Four
Personality and Values
Learning Objectives
1. Dene personality, describe how it is measured, and explain
the factors that determine an individuals personality.
2. Describe the Myers-Briggs Type Indicator personality frame-
work and assess its strengths and weaknesses.
3. Identify the key traits in the Big Five personality model.
4. Demonstrate how the Big Five traits predict behavior at
work.
5. Identify other personality traits relevant to OB.
6. Dene values, demonstrate the importance of values, and
contrast terminal and instrumental values.
7. Compare generational differences in values and identify the
dominant values in todays workforce.
8. Identify Hofstedes ve value dimensions of national culture.
Overview
37
Personality- What value, if any, does the Big Five model provide to managers? From the early
1900s through the mid-1980s, researchers sought to nd a link between personality and job per-
formance. The outcome of those 80-plus years of research was that personality and job perfor-
mance were not meaningfully related across traits or situations. However, the past 20 years have
been more promising, largely due to the ndings surrounding the Big Five. Screening candidates
for jobs who score high on conscientiousnessas well as the other Big Five traits, depending on
the criteria an organization nds most importantshould pay dividends. Each of the Big Five traits
has numerous implications for important OB criteria. Of course, managers still need to take situ-
ational factors into consideration. Factors such as job demands, the degree of required interaction
with others, and the organizations culture are examples of situational variables that moderate the
personalityjob performance relationship. You need to evaluate the job, the work group, and the
organization to determine the optimal personality t. Other traits, such as core self-evaluation or
narcissism, may be relevant in certain situations, too.
Although the MBTI has been widely criticized, it may have a place in organizations. In train-
ing and development, it can help employees to better understand themselves and it can help team
members to better understand each other. And it can open up communication in work groups and
possibly reduce conicts.
Values -Why is it important to know an individuals values? Values often underlie and explain at-
titudes, behaviors, and perceptions. So knowledge of an individuals value system can provide
insight into what makes the person tick.

Employees performance and satisfaction are likely to be higher if their values t well with the
organization. For instance, the person who places great importance on imagination, independence,
and freedom is likely to be poorly matched with an organization that seeks conformity from its
employees. Managers are more likely to appreciate, evaluate positively, and allocate rewards to em-
ployees who t in, and employees are more likely to be satised if they perceive that they do t
in. This argues for management to strive during the selection of new employees to nd job candi-
dates who have not only the ability, experience, and motivation to perform but also a value system
that is compatible with the organizations.
Key Terms
38
Personality:
Machiavellianism:
Value System:
Individualism:
Collectivism:
Summary
39
I. PERSONALITY
A. What Is Personality?
A dynamic concept
Dened: the sum total of ways in which an individual reacts and interacts with others
B. Personality Determinants
1. Introduction
Early arguments suggest heredity and environment. Current literature suggests three fac-
tors: heredity, environment, and situation.
2. Heredity
3. Environment
C. Personality Traits
1. Introduction
2. Myers-Briggs Type Indicator (MBTI)
Widely used in practice by major companies.
3. The Big Five Model
Five Basic Dimensions:
o Extraversion
o Agreeableness
o Conscientiousness
o Emotional stability
o Openness to experience
Research indicates relationships between these personality dimensions and job perfor-
mance.
D. How Do the Big Five Traits Predict Behavior?
Research has shown this to be a better framework.
Certain traits have been shown to strongly relate to higher job performance
E. Other Personality Traits Relevant to OB
1. Core Self-Evaluation (Self-perspective)
Locus of Control
o Internals
o Externals
Self-esteem
Directly related to expectations for success
2. Machiavellianism
Individuals high on this dimensionpragmatic, emotional distance, and belief that the
ends justify the means
3. Narcissism
Narcissists tend to be selsh and exploitive.
4. Self-Monitoring
Ability to adjust behavior to external, situational factors
5. Risk Taking
Managers in large organizations tend toward risk aversiveness.
6. Type A Personality
A Type A personality is characterized as constant motion, impatient, obsessed with mea-
suring self-performance; whereas a Type B Personality is more relaxed; does not suffer
from a sense of time urgency.
7. Proactive Personality
Create positive change in their environments.
More likely seen as leaders and change agents
Summary
40
F. Personality and National Culture
High amount of agreement among individuals in a country
No common personality types for a country
II. VALUES
A. Introduction
Values represent basic convictions:
o There is a judgmental element of what is right, good, or desirable.
o Values have both content and intensity attributes.
o Values are not generally uid and exible.
> They tend to be relatively stable and enduring.
> A signicant portion of the values we hold is established in our early yearsfrom
parents, teachers, friends, and others.
B. Importance of Values
Values lay the foundation for the understanding of attitudes and motivation.
Values generally inuence attitudes and behavior.
C. Types of Values
1. Rokeach Value Survey (Exhibit 43)
Two sets of values, each set had 18 individual value items:
o Terminal valuesrefer to desirable end-states of existence, the goals that a person
would like to achieve during his/her lifetime
o Instrumental valuesrefer to preferable modes of behavior, or means of achieving the
terminal values
Several studies conrm that the RVS values vary among groups.
o People in the same occupations or categories tend to hold similar values.
o Although there may be overlap among groups, there are some signicant differences as
well. (Exhibit 44)
2. Contemporary Work Cohorts
Different generations hold different work values.
o Veteransentered the workforce from the early 1940s through the early 1960s.
o Boomersentered the workforce during the 1960s through the mid-1980s.
o Xersbegan to enter the workforce from the mid-1980s.
o Nextersmost recent entrants into the workforce.
D. Values, Loyalty, and Ethical Behavior
Many people think there has been a decline in business ethics since the late 1970s. The
four-stage model of work cohort values might explain this perception. (Exhibit 45)
Managers consistently report the action of bosses as the most important factor inuencing
ethical and unethical behavior in the organization.
III. LINKING AN INDIVIDUALS PERSONALITY AND VALUES TO THE WORKPLACE
A. Person-Job Fit
Personality-job t theory (Exhibit 46)
o Each personality type has a congruent occupational environment.
B. The Person-Organization Fit
People leave organizations that are not compatible with their personalities.
Organizational Culture Prole (OCP)
o Match individual values to organizations values.
Summary
41
IV. Global Implications
A. Personality .
B. Values Across Cultures
1. Introduction
Values differ across cultures.
2. Hofstedes Framework for Assessing Cultures
One of the most widely referenced approaches for analyzing variations among cultures has
been done by Geert Hofstede.
o Power distance
o Individualism versus collectivism
o Masculinity versus femininity
o Uncertainty avoidance
o Long-term versus short-term orientation
3. The GLOBE Framework for Assessing Cultures (Exhibit 48)
In 1993, the Global Leadership and Organizational Behavior Effectiveness (GLOBE) began
updating this research with data from 825 organizations and 62 countries.
Nine dimensions on which national cultures differ:
o Assertiveness
o Future orientation
o Gender differentiation
o Uncertainty avoidance
o Power distance
o Individualism/collectivism
o In-group collectivism
o Performance orientation
o Humane orientation
4. Implications for OB
A. Personality
Conscientiousness is often a major factor for successful employees
The MBTI can be used to better understand each other
Managers use the Big Five to view employee personality
B. Values
Values inuence attitudes, perceptions, and behaviors
Values can be measured using the Rokeach Values Survey
It is important that the values of the employee and the organization match
Self Test
42
1) Which of the following statements about personality is correct?
A) Personality is a part of a person.
B) Personality is always stable.
C) Personality is an aggregate whole.
D) Personality is for the most part comprised of traits that cannot be measured.
E) Personality is the primary source of emotions in most people.

2) If personality characteristics were completely dictated by ________, they would be
xed at birth and no amount of experience could alter them.
A) religion
B) job satisfaction
C) environment
D) heredity
E) situations

3) Which of the following terms describes basic convictions that a specic mode of
conduct or end state of existence is personally or socially preferable to an opposite
mode of conduct?
A) affectual preferences
B) values
C) preferences
D) convictions
E) attitudes

4) Which of the following statements about values is true?
A) Values are fairly stable over time.
B) Values are synonymous with attitudes.
C) Values are exible.
D) Values tend to be consistent among occupational groups.
E) Values change easily when they are called into question.

5) What is the term used to describe workers who entered the workforce in the 1950s
and early 1960s?
A) Millennials
B) Nexters
C) Xers
D) Veterans
E) Boomers
Self Test
43
6) The most recent entrants to the U.S. workforce are ________.
A) Nexters
B) Boomers
C) Veterans
D) Traditionalists
E) Xers

7) Which of the following cultural dimensions identied by GLOBE does not have an
equivalent in Hofstede?
A) individualism/collectivism
B) future orientation
C) power distance
D) performance orientation
E) gender differentiation

You are assembling a team to work on a long-term project which requires creativity, stami-
na, and farsightedness. The only piece of information available to you is the Myers-Briggs
Type of each of the applicants. These results are shown below:
Candidate Alan Brenda Cameron Drusilla Ellen
Myers Briggs Type INTJ ESTJ ENTP ESFP INFP

8) You need to choose a lead person for the team. This person must be a visionary; com-
bining an original mind with great drive. Who would be the best candidate based on
their Myers Briggs Type?
A) Ellen
B) Drusilla
C) Brenda
D) Cameron
E) Alan

9) You are looking for an organizer, a person on whom you can depend to be practical
and realistic. Who would be the best candidate based on their Myers Briggs Type?
A) Cameron
B) Alan
C) Drusilla
D) Ellen
E) Brenda

Self Test
44
10) You have decided to use Hollands Typology of Personality and Congruent Occupations
to help your friends who are college seniors recognize which jobs they would be well-
suited for. Monica is shy, stable, and persistent. Neil is ambitious and energetic and
likes to dominate conversations. Jessica is idealistic, impractical, and very imagina-
tive. Walter is efcient and practical, but he lacks imagination and tends to be inex-
ible. Chris is an original thinker, with an analytical and independent intelligence.

Monica is majoring in interior design. Her personality type is realistic according to Hol-
lands Typology. Which of the following statements is correct?
A) Monica prefers physical to mental activities.
B) Monicas personality type is well-suited to her major.
C) Interior design is congruent with a social personality type.
D) Monica is better suited to be a bank teller.
E) Interior design is incongruent with her personality type.
Answer Keys
45
Key Term Denitions
Personality: The sum total of ways in which an individual reacts to and interacts with others.
Machiavellianism: The degree to which an individual is pragmatic, maintains emotional distance,
and believes that ends can justify means.
Value System: A hierarchy based on a ranking of an individuals values in terms of their intensity.
Individualism: A national culture attribute that describes the degree to which people prefer to act
as individuals rather than as members of groups.
Collectivism: A national culture attribute that describes a tight social framework in which people
expect others in groups of which they are a part to look after them and protect them.
Answer Keys
46
1) C
2) D
3) B
4) A
5) D
6) A
7) D
8) E
9) E
10) E
Notes
47
Unit 1 Examination
Instructions
48
The Unit Examination
The Unit Examination contains 25 multiple choice questions, as well
as a writing assignment.
Your grade on the examination will be determined by the
percentage of correct answers. The University utilizes the following
grading system:
B = 80% 89% correct
C = 70% 79% correct
D = 60% 69% correct
4 grade points
3 grade points
2 grade points
1 grade point
0 grade points
Completing Unit One Examination
Before beginning your examination, we recommend that you
thoroughly review the textbook chapters and other materials covered
in each Unit and follow the suggestions in the Mastering the Course
Content section of the course Syllabus.
This Unit Examination consists of objective test questions as well as
a comprehensive writing assignment selected to reect the Learning
Objectives identied in each chapter covered so far in your textbook.
Additional detailed information on completing the examination,
writing standards and how to submit your completed examination
may be found in the Syllabus for this course.
Unit 1 Examination
49
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1) Over the past two decades, business schools have added required courses on people
skills to many of their curricula. Why have they done this?
A) There is an increased emphasis in controlling employee behavior in the workplace.
B) These skills enable managers to effectively lead human resources departments.
C) Managers no longer need technical skills in subjects such as economics and account-
ing to succeed.
D) Managers need to understand human behavior if they are to be effective.
E) A manager with good people skills can help create a pleasant workplace.

2) According to Katz, technical skills encompass the ability to ________.
A) apply specialized knowledge or expertise
B) analyze and diagnose complex situations
C) initiate and oversee complex projects
D) exchange information and control complex situations
E) communicate effectively with others

3) Which of Luthans managerial activities involves socializing, politicking, and interact-
ing with outsiders?
A) human resource management
B) communicating
C) networking
D) investing
E) traditional management

4) ________ blends concepts from psychology and sociology.
A) Corporate strategy
B) Archaeology
C) Social psychology
D) Anthropology
E) Political science.

5) ________ focuses on the study of people in relation to their social environment.
A) Corporate strategy
B) Sociology
C) Political science
D) Operations management
E) Psychology
Unit 1 Examination
50
6) Whereas ________ focuses on differences among people from different countries,
________ addresses differences among people within given countries.
A) workforce diversity; globalization
B) culture; diversity
C) culturization; workforce diversity
D) psychology; social psychology
E) globalization; workforce diversity

7) Which of the following factors makes it imperative that organizations be fast and ex-
ible?
A) advances in corporate strategy
B) truncated capacity
C) globalization
D) corporate excess
E) temporariness

8) Which of the following is the major challenge to managers in a fully networked organi-
zation?
A) managing people who work together but are geographically separated
B) retaining team members who can easily move to another employer when demand for
their services changes
C) eliminating the need for paper communication by relying entirely on e-mail, le trans-
fers and the like
D) managing contract and temporary workers
E) maintaining a virtual ofce through the use of computers, interofce networks and
the Internet

9) What term is used to describe voluntary and involuntary permanent withdrawal from
an organization?
A) absenteeism
B) truancy
C) downsizing
D) turnover
E) social atrophy

10) Research supports which of the following statements about men and women in the
workplace?
A) Men are the most receptive to socialization.
B) Women are more productive.
C) Men are more productive.
D) Women are more likely to resign.
E) Women have more absences.
Unit 1 Examination
51
11) Experiments performed by Ivan Pavlov led to what theory?
A) social learning
B) operant conditioning
C) behavior shaping
D) classical conditioning
E) method reproduction

12) Your boss does not follow through on her promise to pay you double for overtime
hours worked. When asked again to work overtime, you decline. This is an application
of ________ conditioning.
A) association
B) sensory
C) disappointment-weighted
D) operant
E) classical

13) According to operant conditioning, when a behavior is not reinforced, what happens
to the probability of that behavior occurring again?
A) It may increase or decrease based on other factors.
B) It declines.
C) It remains unchanged.
D) It becomes zero.
E) It increases.

14) You want Allison to take an accounting course so that she can help with the book-
keeping. Allison does not want to go to night school to take the course and has been
resisting. You know that her least favorite duty is preparing payroll. You tell her that
she will be given extra help with preparing payroll whenever she takes an accounting
class. This is an example of ________.
A) positive reinforcement
B) classical conditioning
C) punishment
D) extinction
E) negative reinforcement

Your manager has read about the now-classic study of Emerys use of OB Mod. He was
impressed by the savings to the company of $2 million over a three-year period. He has
announced that he is implementing an OB Mod program at your organization.
15) In the rst step of the OB Mod program, your manager will most likely be attempt-
ing to identify those ve to ten percent of behaviors that may account for up to
________ percent of each employees performance.
A) 20-25
Unit 1 Examination
52
B) 100
C) 70-80
D) 40-50
E) 60-70

16) Jo is a courier, delivering parcels throughout the metropolitan area. Although she
considers herself law abiding, she often breaks the speed limit while making her de-
liveries. Which of the following statements does not reect a likely response to the
conict between her attitude and her behavior?
A) This speeding is irresponsible. From now on I am observing the speed limits.
B) Ive got to drive fast sometimes, otherwise I will not make all my deliveries and Ill
lose clients.
C) Its wrong to break even minor laws, but Ill probably keep speeding anyway.
D) Its not a problem that I speed a little bit; its not much over the limit, and everyone
else speeds some.
E) The speed limits are just too low around here; anyone driving at a reasonable speed
will break them.

17) Maria is dissatised with the way that her manager treats her. She has quit her job
and found a new position with another rm. She has expressed her dissatisfaction
through ________.
A) exit
B) neglect
C) voice
D) loyalty
E) social voice

Mrs. Jonas believes strongly that it is important that workers rights be respected, and
that one of the more important ways of doing this is to ensure that all workers be properly
documented. She is supervising a contracting company that is building a new warehouse
for her company. While doing this she discovers that many of the workers employed by the
contractor are undocumented aliens working for well below minimum wage.

18) Mrs. Jonas is likely experiencing ________.
A) unresolved anger
B) uncertainty avoidance
C) ethical evasion
D) social pressure
E) cognitive dissonance

Unit 1 Examination
53
19) Mrs. Jonas comes to you for an explanation of why she is so uncomfortable. You might
refer her to the theories of ________.
A) Festinger
B) Skinner
C) Surber
D) Maslow
E) Hofstede

20) Mrs. Jonas can be expected to relieve the discomfort she is experiencing by ________.
A) rationalizing that it is not her problem since she is not the contractor
B) attempting to stop the contractor using undocumented workers
C) deciding this issue is unimportant
D) coming to accept that using undocumented workers does not harm workers rights
E) any of the above

21) Which dimension of the Big Five model is a measure of reliability?
A) emotional stability
B) agreeableness
C) conscientiousness
D) feeling
E) extraversion

22) How would you describe an individual who is capable of presenting striking contradic-
tions between who they are in public and who they are privately?
A) narcissistic
B) low Mach
C) high self-monitoring
D) high Mach
E) low self-monitoring

23) Which of the following terms best describes people who show initiative, take action,
and persevere until meaningful change occurs?
A) Type A
B) proactive personalities
C) high Mach
D) high self esteem
E) high conscientiousness
Self Test
54
24) Which of the following is not one of Hofstedes ve dimensions of national culture?
A) uncertainty avoidance
B) long-term versus short-term orientation
C) power distance
D) individualism versus collectivism
E) exibility versus rigidity

25) You have decided to use Hollands Typology of Personality and Congruent Occupations
to help your friends who are college seniors recognize which jobs they would be well-
suited for. Monica is shy, stable, and persistent. Neil is ambitious and energetic and
likes to dominate conversations. Jessica is idealistic, impractical, and very imagina-
tive. Walter is efcient and practical, but he lacks imagination and tends to be inex-
ible. Chris is an original thinker, with an analytical and independent intelligence.

Which of your friends is best suited to being an accountant?
A) Neil
B) Walter
C) Monica
D) Jessica
E) Chris
Unit 1 Examination
55
Written Assignment for Unit One
Include your name, student number, course number, course title and unit number on each page
of your written assignment (this is for your protection in case your materials become separated).
Begin each written assignment by identifying the question number you are answering followed by
the actual question itself (in bold type).
Use a standard essay format for responses to all questions (i.e. an introduction, middle
paragraphs and conclusion).
Responses must be submitted as a MS Word Document only, typed double-spaced, using a

standard font (i.e. Times New Roman) and 12 point type size.
Word count is NOT one of the criteria that is used in assigning points to written assignments. However,
students who are successful in earning the maximum number of points tend to submit written assignments
that fall in the following ranges:
Plagiarism
All work must be free of any form of plagiarism. Put written answers into your own words. Do not simply cut
and paste your answers from the Internet and do not copy your answers from the textbook. Be sure to refer to
the course Syllabus for more details on plagiarism and proper citation styles.
Please answer ONE of the following:
1) What is an ethical dilemma? How are organizations responding to these dilemmas?

2) Describe the concept of turnover. Why is turnover of such great concern to organizations?

3) How do we learn? Identify and discuss the theories to explain the process by which
we acquire patterns of behavior. Be sure to specically identify the key elements of
each of these theories by name.
You Can Do It
56
You have just completed Unit 1 of this course.
You are off to a great start!
Keep up the good work!
Objectives
57
Chapter Number Five
Perception and Individual Decision Making
Learning Objectives
1. Dene perception and explain the factors that inuence it.
2. Explain attribution theory and list the three determinants of
attribution.
3. Identify the shortcuts individuals use in making judgments
about others.
4. Explain the link between perception and decision making.
5. Apply the rational model of decision making and contrast it
with bounded rationality and intuition.
6. List and explain the common decision biases or errors.
7. Explain how individual differences and organizational con-
straints affect decision making.
8. Contrast the three ethical decision criteria.
9. Dene creativity and discuss the three-component model of
creativity.
Overview
58
Perception- Individuals base their behavior not on the way their external environment actually is
but rather on what they see or believe it to be. Whether a manager successfully plans and organizes
the work of employees and actually helps them to structure their work more efciently and effec-
tively is far less important than how employees perceive the managers efforts. Similarly, employ-
ees judge issues such as fair pay for work performed, the validity of performance appraisals, and
the adequacy of working conditions in very individual ways; we cannot be assured that they will
interpret conditions about their jobs in a favorable light. Therefore, to inuence productivity, its
necessary to assess how workers perceive their jobs.
Absenteeism, turnover, and job satisfaction are also reactions to an individuals perceptions. Dis-
satisfaction with working conditions and the belief that an organization lacks promotion opportuni-
ties are judgments based on attempts to create meaning out of the job. The employees conclusion
that a job is good or bad is an interpretation. Managers must spend time understanding how each
individual interprets reality and, when there is a signicant difference between what someone sees
and what exists, try to eliminate the distortions.
Individual Decision Making- Individuals think and reason before they act. This is why an under-
standing of how people make decisions can be helpful for explaining and predicting their behavior.
In some decision situations, people follow the rational decision-making model. But few important
decisions are simple or unambiguous enough for the rational models assumptions to apply. So we
nd individuals looking for solutions that satisce rather than optimize, injecting biases and preju-
dices into the decision process, and relying on intuition.
Given the evidence weve described on how decisions are actually made in organizations, what can
managers do to improve their decision making? We offer four suggestions.
First, analyze the situation. Adjust your decision-making approach to the national culture youre
operating in and to the criteria your organization evaluates and rewards. For instance, if youre in
a country that doesnt value rationality, dont feel compelled to follow the rational decision-making
model or even to try to make your decisions appear rational. Similarly, organizations differ in terms
of the importance they place on risk, the use of groups, and the like. Adjust your decision approach
to ensure that its compatible with the organizations culture.
Second, be aware of biases. Then try to minimize their impact. Exhibit 5-5 offers some sugges-
tions.
Third, combine rational analysis with intuition. These are not conicting approaches to decision
making. By using both, you can actually improve your decision-making effectiveness. As you gain
managerial experience, you should feel increasingly condent in imposing your intuitive processes
on top of your rational analysis.
Finally, try to enhance your creativity. Actively look for novel solutions to problems, attempt to see
problems in new ways, and use analogies. In addition, try to remove work and organizational barri-
ers that might impede your creativity.
Key Terms
59
Perception:
Halo effect:
Stereotyping:
Utilitarianism:
Whistle-blowers:
Summary
60
I. WHAT IS PERCEPTION?
Denition: Perception is a process by which individuals organize and interpret their sen-
sory impressions in order to give meaning to their environment.
Why is this important to the study of OB?
o Because peoples behavior is based on their perception of what reality is, not on
reality itself.
II. FACTORS THAT INFLUENCE PERCEPTION
Factors that shape and can distort perception: (Exhibit 51)
o Perceiver
o Target
o Situation
III. PERSON PERCEPTION: MAKING JUDGMENTS ABOUT OTHERS
A. Attribution Theory (Exhibit 52)
Our perceptions of people differ from our perceptions of inanimate objects.
o We make inferences.
> Nonliving objects are subject to the laws of nature.
> People have beliefs, motives, or intentions.
B. Frequently Used Shortcuts in Judging Others
1. Introduction
We use a number of shortcuts when we judge others. An understanding of these shortcuts
can be helpful toward recognizing when they can result in signicant distortions.
2. Selective Perception
3. Halo Effect
The halo effect occurs when we draw a general impression on the basis of a single charac-
teristic.
4. Contrast Effects
We do not evaluate a person in isolation. Our reaction to one person is inuenced by other
persons we have recently encountered.
5. Stereotyping
C. Specic Applications of Shortcuts in Organizations
1. Employment Interview
Interviewers make perceptual judgments that are often inaccurate.
Agreement among interviewers is often poor.
Most interviewers decisions change very little after the rst four or ve minutes of the
interview.
2. Performance Expectations
People will attempt to validate their perceptions of reality, even when those perceptions
are faulty.
Self-fullling prophecy or Pygmalion
3. Performance Evaluation
Performance appraisal is very much dependent on the perceptual process.
IV. THE LINK BETWEEN PERCEPTION AND INDIVIDUAL DECISION MAKING
Individuals in organizations make decisions; they make choices from among two or more
alternatives.
o Decisions vary at different levels of management.
Decision-making occurs as a reaction to a problem.
Every decision requires interpretation and evaluation of information. The perceptions of the
decision maker will address these two issues.
Summary
61
V. HOW SHOULD DECISIONS BE MADE?
A. The Rational Decision-Making Process
1. Introduction
2. The Rational Model
Dene the problem
Identify criterion
Weight criterion
Generate alternatives
Rate each alternative
Compute optimal decision
3. Assumptions of the Model
Problem clarity
Known options
Clear preferences
Constant preferences
No time or cost constraints
Maximum payoff

VI. HOW ARE DECISIONS ACTUALLY MADE IN ORGANIZATIONS?
A. Introduction
B. Bounded Rationality
People Satisce
C. Common Biases and Errors
1. Introduction
2. Overcondence Bias
3. Anchoring Bias
4. Conrmation Bias
5. Availability Bias
6. Representative Bias
7. Escalation of Commitment
8. Randomness Error
9. Winners Curse
10. Hindsight Bias
D. Intuition
Unconscious process created out of distilled experience
E. Individual Differences
1. Personality
2. Gender
F. Organizational Constraints
1. Introduction
The organization itself constrains decision makers.
2. Performance Evaluation
3. Reward Systems
4. Formal Regulations
5. System-Imposed Time Constraints
6. Historical Precedents

Summary
62
VII. ETHICS IN DECISION MAKING?

A. Introduction
Ethical considerations should be an important criterion in organizational decision making.
B. Three Ethical Decision Criteria
The three different criteria are: utilitarian, focus on rights, and justice.
These criteria have advantages and liabilities.
Increased concern in society about individual rights and social justice suggests the need
for managers to develop ethical standards based solely on non-utilitarian criteria.
VIII. Improving Creativity in Decision Making

1. Introduction
2. Creative Potential
People differ in their inherent creativity.
3. Three-Component Model of Creativity
Expertise
Creative thinking skills
Intrinsic task motivation

A. Perception
Perceptions impact behavior
Productivity can be inuenced by perceptions
It is important that managers understand how employees view reality
B. Individual Decision Making
Individuals think before they act
Behaviors can be explained by how decisions are made
In complex situations employees will seek to satisce rather than optimize
Self Test
63
1) What is the process by which individuals organize and interpret their sensory impres-
sions in order to give meaning to their environment?
A) social verication
B) interpretation
C) perception
D) outlook
E) environmental analysis

2) Investors bragged about their investing expertise during the stock market rally be-
tween 1996 and early 2000, then blamed analysts, brokers, and the Federal Reserve
when the market imploded in 2000. These investors were most probably guilty of
what?
A) the halo effect
B) selective perception
C) distinctiveness
D) self-serving bias
E) fundamental attribution error

3) Because it is impossible for us to assimilate everything we perceive, we engage in
________.
A) memorization
B) periodic listening
C) mental desensitization
D) selective perception
E) linear clustering

4) When the police began searching for a serial killer, they stopped only vehicles carry-
ing Caucasian males. What are the police engaging in?
A) proling
B) prototyping
C) contrast effects
E) the halo effect

5) According to ________, what is expected of people helps determine their behavior.
A) projection
B) the Pygmalion effect
C) self-selecting bias
D) the halo effect
E) the fundamental attribution error
Self Test
64
6) People with high self-esteem appear to be especially susceptible to what?
A) randomness
B) bounded rationality
C) hindsight bias
D) the self-serving bias
E) escalation of commitment

7) What is the segment in the three-component model of creativity that turns creative
potential into actual creative ideas?
A) expertise
B) creative thinking skills
C) realization
D) intrinsic task motivation
E) intuition

The students in your class are presenting their oral presentations in front of the entire
class. You have heard that there are several frequently used shortcuts to judging others
and are wondering if any of these are being used by your teacher.

8) Allison has just presented her paper and has done a really good job. Why should you
not want to present your own paper directly after she does?
A) to avoid the stereotyping effect
B) to avoid the ultimate attribution error
C) to avoid the halo effect
D) to avoid the contrast effect
E) to avoid the projection effect

9) You have heard that the teacher believes that men perform better in oral presenta-
tions than women. What shortcut has the teacher used in this case?
A) stereotyping
B) the halo effect
C) the contrast effect
D) projection
E) prototyping

You are the manager of a development group in a large computer software company. You
have decided that it is important for your group to understand the many ways that ethical
decisions can be made and you are designing a training program on the subject of eth-
ics. You want to teach the decision criterion that currently dominates business decision-
making.

Summary
65
10) Which decision criterion will you teach?
A) utilitarian
B) assertion
C) rights
D) privilege
E) justice
Answer Keys
66
Key Term Denitions
Perception: A process by which individuals organize and interpret their sensory impressions in
order to give meaning to their environment.
Halo effect: The tendency to draw a general impression about an individual on the basis of a single
characteristic.
Stereotyping: Judging someone on the basis of ones perception of the group to which that person
belong.
Utilitarianism: A system in which decisions are made to provide the greatest good for the greatest
number.
Whistle-blowers: Individuals who report unethical practices by their employers to outsiders.
Answer Keys
67
1) C
2) D
3) D
4) A
5) B
6) D
7) D
8) D
9) A
10) A
Notes
68
Objectives
69
Chapter Number Six
Motivation Concepts
Learning Objectives
1. Describe the three key three elements of motivation.
2. Identify four early theories of motivation and evaluate their
applicability today.
3. Apply the predictions of cognitive evaluation theory to intrin-
sic and extrinsic rewards.
4. Compare and contrast goal-setting theory and management
by objective
5. Contrast reinforcement theory and goal-setting theory.
6. Demonstrate how organizational justice is a renement of
equity theory.
7. Apply the key tenets of expectancy theory to motivating
employees.
8. Compare contemporary theories of motivation.
9. Explain to what degree motivation theories are culture
bound.
Overview
70
The theories weve discussed in this chapter address different outcome variables. Some, for in-
stance, are directed at explaining turnover, while others emphasize productivity. The theories also
differ in their predictive strength. In this section, we (1) review the most established motivation
theories to determine their relevance in explaining the dependent variables, and (2) assess the
predictive power of each.
Need Theories- We introduced four theories that focused on needs: Maslows hierarchy, ERG, Mc-
Clellands needs, and the two-factor theory. None of these theories has found widespread support,
although the strongest of them is probably McClellands theory, particularly regarding the relation-
ship between achievement and productivity. In general, need theories (Maslow and ERG) are not
very valid explanations of motivation.
Goal-Setting Theory- There is little dispute that clear and difcult goals lead to higher levels of
employee productivity. This evidence leads us to conclude that goal-setting theory provides one of
the most powerful explanations of this dependent variable. The theory, however, does not address
absenteeism, turnover, or satisfaction.
Reinforcement Theory- This theory has an impressive record for predicting factors such as quality
and quantity of work, persistence of effort, absenteeism, tardiness, and accident rates. It does not
offer much insight into employee satisfaction or the decision to quit.
Equity Theory/Organizational Justice- Equity theory deals with productivity, satisfaction, absence,
and turnover variables. However, its strongest legacy probably is that it provided the spark for re-
search on organizational justice, which has more support in the literature.
Expectancy Theory- Our nal theory, expectancy theory, focuses on performance variables. It has
proved to offer a relatively powerful explanation of employee productivity, absenteeism, and turn-
over. But expectancy theory assumes that employees have few constraints on their decision discre-
tion. It makes many of the same assumptions that the rational model makes about individual deci-
sion making (see Chapter 5), and this limits its applicability. Expectancy theory has some validity
because for many behaviors, people consider expected outcomes. However, the rational model goes
only so far in explaining behavior.
Key Terms
71
Motivation:
Hierarchy of needs theory:
Management by Objectives (MBO):
Distributive Justice:
Organizational Justice:
Summary
72
I. DEFINING MOTIVATION
Motivation is the result of the interaction of the individual and the situation.
Denition: Motivationprocesses that account for an individuals intensity, direction, and
persistence of effort toward attaining a goal.
II. EARLY THEORIES OF MOTIVATION
A. Introduction
In the 1950s three specic theories were formulated and are the best known: hierarchy of
needs theory, Theories X and Y, and the two-factor theory.
They represent a foundation from which contemporary theories have grown.
B. Hierarchy of Needs Theory
Abraham Maslows hierarchy of needs is the most well-known theory of motivation.
o Physiological
o Safety
o Social
o Esteem
o Self-actualization
Maslow separated the ve needs into higher and lower orders.
Clayton AlderferERG Theory
C. Theory X and Theory Y
Douglas McGregor concluded that a managers view of the nature of human beings is
based on a certain grouping of assumptions and he or she tends to mold his or her behav-
ior toward employees according to these assumptions.
Theory X assumptions are basically negative.
Theory Y assumptions are basically positive.
D. Two-Factor Theory
The two-factor theory is sometimes also called motivation-hygiene theory.
Proposed by psychologist Frederick Herzberg when he investigated the question, What do
people want from their jobs?
o Intrinsic factors, such as advancement
o Dissatised respondents tended to cite extrinsic factors.
o The opposite of satisfaction is not dissatisfaction.
o Removing dissatisfying characteristics from a job does not necessarily make the job
satisfying.
o When hygiene factors are adequate, people will not be dissatised; neither will they be
satised. To motivate people, emphasize factors intrinsically rewarding that are associ-
ated with the work itself or to outcomes directly derived from it.
Criticisms of the theory:
o The procedure that Herzberg used is limited by its methodology.
o The reliability of Herzbergs methodology is questioned.
o No overall measure of satisfaction was utilized.
o The theory is inconsistent with previous research.
o Herzberg assumed a relationship between satisfaction and productivity, but the research
methodology he used looked only at satisfaction, not at productivity.
Regardless of criticisms, Herzbergs theory has been widely read, and few managers are
unfamiliar with his recommendations.
o The popularity of vertically expanding jobs to allow workers greater responsibility
can probably be attributed to Herzbergs ndings

Summary
73
E. McClellands Three Needs Theory
o Need for Achievement (nAch)
o Need for Power (nPow)
o Need for Afliation (nAff)
o People have varying levels of each of the three needs.
Performance Predictions for High nAch
o People undertake activities with a 50/50 chance of success
o Not necessarily good managers
o Need high level of power and low level of afliation for managerial success
o Good research support but it is not a very practical theory

III. CONTEMPORARY THEORIES OF MOTIVATION
A. Cognitive Evaluation Theory
Cognitive evaluation theoryWhen extrinsic rewards are used by organizations as payoffs
for superior performance, the intrinsic rewards, which are derived from individuals doing
what they like, are reduced.
The popular explanation is that the individual experiences a loss of control over his or her
own behavior so that the previous intrinsic motivation diminishes.
If the cognitive evaluation theory is valid, it should have major implications for managerial
practices.
Further research is needed to clarify some of the current ambiguity. The evidence does
lead us to conclude that the interdependence of extrinsic and intrinsic rewards is a real
phenomenon.
o Self-concordancethe degree to which peoples reasons for pursuing goals is consistent
with their interests and core values.
B. Goal-Setting Theory
In the late 1960s, Edwin Locke proposed that intentions to work toward a goal are a major
source of work motivation.
Specic hard goals produce a higher level of output than do the generalized goals.
If factors like ability and acceptance of the goals are held constant, we can also state that
the more difcult the goal, the higher the level of performance.
People will do better when they get feedback on how well they are progressing toward their
goals. Self-generated feedback is more powerful a motivator than externally generated
feedback.
There are contingencies in goal-setting theory. In addition to feedback, four other factors
inuence the goals-performance relationship.
o Goal commitment
o Adequate self-efcacy
o Task characteristics
o National culture
C. MBO Programs: Putting Goal-Setting Theory into Practice
Impressive base of research support
Management by objectives
Four ingredients
o Goal specicity
o Participation in decision making
o Explicit time period
o Performance feedback
Summary
74
D. Self-Efcacy Theory
Social cognitive theory
Social learning theory
Complements goal-setting theory
o Albert Bandera increasing self-efcacy
Enactive mastery
Vicarious modeling
Verbal persuasion
Arousal
E. Reinforcement Theory
Reinforcement theory is a behavioristic approach.
o Reinforcement theorists see behavior as being environmentally caused.
o Reinforcement theory ignores the inner state of the individual and concentrates solely
on what happens to a person when he or she takes some action.
F. Equity Theory
Employees make comparisons of their job inputs and outcomes relative to those of others.
o When we see the ratio as unequal, we experience equity tension.
There are four referent comparisons that an employee can use:
o Self-inside
o Self-outside
o Other-inside
o Other-outside
Which referent an employee chooses will be inuenced by the information the employee
holds about referents, as well as by the attractiveness of the referent.
o There are four moderating variables: gender, length of tenure, level in the organization,
and amount of education or professionalism.
o When employees perceive an inequity, they can be predicted to make one of six choices:
> Change their inputs.
> Change their outcomes.
> Distort perceptions of self.
> Distort perceptions of others.
> Choose a different referent.
> Leave the eld.
Theory establishes the following propositions relating to inequitable pay:
o Given payment by time, over-rewarded employees will produce more than will equi-
tably paid employees.
o Given payment by quantity of production, over-rewarded employees will produce fewer,
but high-quality, units than will equitably paid employees.
o Given payment by time, under-rewarded employees will produce less or poorer quality of
output.
o Given payment by quantity of production, under-rewarded employees will produce a
large number of low-quality units in comparison with equitably paid employees.
Recent research has been directed at expanding what is meant by equity or fairness.
(Exhibit 69)
o Distributive justice
o Organization justice
o Procedural justice
o Interactional justice
Summary
75
G. Expectancy Theory
Victor Vrooms expectancy theory is one of the most widely accepted explanations of moti-
vation.
It says that an employee will be motivated to exert a high level of effort when he/she be-
lieves that:
o Effort will lead to a good performance appraisal.
o A good appraisal will lead to organizational rewards.
o The rewards will satisfy his/her personal goals.
>Three key relationships: (See Exhibit 610).
Effort-performance relationship
Performance-reward relationship
Rewards-personal goals relationship
Expectancy theory helps explain why a lot of workers merely do the minimum necessary to
get by.
As a contingency model, expectancy theory recognizes that there is no universal principle
for explaining everyones motivations.
IV. INTEGRATING CONTEMPORARY MOTIVATION THEORIES
The Model in Exhibit 611 integrates much of what we know about motivation. Its basic
foundation is the expectancy model.
V. CAVEAT EMPTOR: MOTIVATION THEORIES ARE OFTEN CULTURE-BOUND
The most blatant pro-American characteristic inherent in these theories is the strong
emphasis on individualism and quality of life.
There are cross-cultural consistencies.
The desire for interesting work seems important to almost all workers.
Growth, achievement, and responsibility were rated the top three and had identical rank-
ings in another study of several countries.
VI. SUMMARY AND IMPLICATIONS FOR MANAGERS
A. Need Theories
B. Goal-Setting Theory
C. Reinforcement Theory
D. Equity Theory/Organizational Justice
E. Expectancy Theory
Self Test
76
1) Maslows hierarchy of needs arranges those needs in which of the following orders?
A) physiological, social, safety, esteem, and self-actualization
B) physiological, esteem, safety, social, and self-actualization
C) safety, physiological, esteem, social, and self-actualization
D) safety, physiological, social, esteem, and self-actualization
E) physiological, safety, social, esteem, and self-actualization

2) Jasmine is trying to gain control of her department. Although she will be greatly com-
pensated if she achieves this aim and will gain control over many subordinates, the
main reason she is pursuing this position is that she thinks she can do the job better
than her predecessors and wants people to know that this is so. What need would Mc-
Clelland say primarily drives Jasmine in this case?
A) the need for attainment
B) the need for inuence
C) the need for achievement
D) the need for power
E) the need for control

3) A manager wishes to motivate a sales employee who is a high achiever. According to
McClelland, which of the following sales territories should be assigned to such a
salesperson?
A) one where he is closely controlled and there is a small chance he will greatly exceed
his sales targets
B) one where he is loosely controlled and there is a moderate chance he will exceed his
sales targets
C) one where he is closely controlled and there is a moderate chance he will exceed his
sales targets
D) one where he is loosely controlled and he is certain to meet his sales targets
E) one where he is loosely controlled and there is a small chance he will greatly exceed
his sales targets

4) The issue of whether or not intrinsic and extrinsic motivators are independent is con-
sidered in which theory?
A) reinforcement
B) two-factor
C) equity
D) cognitive evaluation
E) expectancy

5) What sort of goals does Management by Objectives (MBO) emphasize?
A) hierarchical, attainable, and effective
Self Test
77
B) tangible, veriable, and measurable
C) achievable, controllable, and protable
D) challenging, emotional, and constructive
E) inspirational, teachable, and creative
6) According to Bandura, what is the most important source of increasing self-efcacy?
A) verbal modeling
B) focused training
C) enactive mastery
D) arousal
E) verbal persuasion

7) Which of the following is not a comparison an employee can use in equity theory?
A) self-outside
B) self-goal
C) other-inside
D) self-inside
E) other-outside

8) Most current motivation theories have a strong emphasis on individualism and quan-
tity of life. Why is this?
A) These are the traits needed to successfully motivate people.
B) These are the two traits that are most distinct in most people worldwide.
C) Researchers tend to concentrate on those traits that are easiest to quantify.
D) They were developed in the United States by Americans.
E) Motivation theory relies on the study of personality traits to understand what drives
people.

Your fellow employees have a terrible work situation. They work in an old, run-down build-
ing with an antiquated heating system. The work itself is tedious and the supervisor is
rarely available and only shows up to give reprimands for production shortfalls. Nobody
has received a promotion in two years. The work is boring, repetitious, and unrewarding.
You have decided to try to apply Herzbergs two-factor theory.

9) Which of the following statements would likely be true?
A) The relationship with the supervisor is a motivation factor.
B) Fixing the conditions that make the employees dissatised will not make them satis-
ed.
C) When the working conditions are improved, employees will be satised.
D) The major reason for dissatisfaction is probably the nature of the work itself.
E) Employees are dissatised due to lack of recognition.
Self Test
78
You graduated from college two years ago and began working at Hampstead Electronics.
You have received good performance evaluations and a raise. You just found out that a
recent college graduate with no experience has been hired at a higher salary than you are
now making.

10) Which of the following will you probably use to evaluate this situation?
A) equity
B) expectancy
C) self-enhancement
D) reinforcement
E) goal setting
Answer Keys
79
Key Term Denitions
Motivation: The processes that account for an individuals intensity, direction, and persistence of
effort toward attaining a goal.
Hierarchy of needs theory: A hierarchy of ve needs physiological, safety, social, esteem, and
self actualization in which, as each need is substantially satised, the need becomes dominant.
Management by Objectives (MBO): A program that encompasses specic goals, particularly set, for
an explicit time period, with feedback on goal progress.
Distributive Justice: Perceived fairness of the amount and allocation of rewards among individuals.
Organizational Justice: An overall perception of what is fair in the workplace, composed of distribu-
tive, procedural, and interactional justice.
Answer Keys
80
1) E
2) C
3) C
4) D
5) B
6) C
7) B
8) D
9) B
10) A
Notes
81
Objectives
82
Chapter Number Seven
Motivation: From Concepts to Applications
Learning Objectives
1. Describe the job characteristics model and evaluate the way
it motivates by changing the work environment.
2. Compare and contrast the three main ways jobs can be
redesigned.
3. Identify three alternative work arrangements and show how
they might motive employees.
4. Give examples of employee involvement measures and show
how they can motivate employees.
5. Demonstrate how the different types of variable-pay pro-
grams can increase employee motivation.
6. Show how exible benets turn benets into motivators.
7. Identify the motivational benets of intrinsic rewards.
Overview
83
Weve presented a number of motivation theories and applications in Chapter 6 and in this chapter.
Although its always dangerous to synthesize a large number of complex ideas into a few simple
guidelines, the following suggestions summarize the essence of what we know about motivating
employees in organizations.
Recognize Individual Differences- Managers should be sensitive to individual differences. For
example, employees from Asian cultures prefer not to be singled out as special because it makes
them uncomfortable.
Employees have different needs. Dont treat them all alike. Moreover, spend the time neces-
sary to understand whats important to each employee. This allows you to individualize goals, level
of involvement, and rewards to align with individual needs. Also, design jobs to align with individu-
al needs and therefore maximize the motivation potential in jobs.
Use Goals and Feedback- Employees should have rm, specic goals, and they should get feed-
back on how well they are faring in pursuit of those goals.
Allow Employees to Participate in Decisions That Affect Them- Employees can contribute to a
number of decisions that affect them: setting work goals, choosing their own benets packages,
solving productivity and quality problems, and the like. This can increase employee productivity,
commitment to work goals, motivation, and job satisfaction.
Link Rewards to Performance- Rewards should be contingent on performance. Importantly, employ-
ees must perceive a clear linkage between performance and rewards. Regardless of how closely re-
wards are actually correlated to performance criteria, if individuals perceive this relationship to be
low, the results will be low performance, a decrease in job satisfaction, and an increase in turnover
and absenteeism.
Check the System for Equity- Employees should perceive rewards as equating with the inputs they
bring to the job. At a simplistic level, this should mean that experience, skills, abilities, effort, and
other obvious inputs should explain differences in performance and, hence, pay, job assignments,
and other obvious rewards.
Key Terms
84
Job design:
Task signicance:
Motivating potential score (MPS):
Bonus:
Gainsharing:
Summary
85
I. MOTIVATING BY JOB DESIGN
A. The Job Characteristics Model (JCM)
JCM proposes that any job can be described in terms of ve core dimensions.
o Skill variety
o Task identity
o Task signicance
o Autonomy
o Feedback
B. How Can Jobs Be Redesigned?
1. Introduction
Ways to reshape jobs so that they are more challenging, stimulating, and motivating.
Three job redesign optionsjob rotation, job enlargement, and job enrichment
2. Job Rotation
3. Job Enlargement
4. Job Enrichment
How does management enrich an employees job?
o Combining tasks
o Forming natural work units
o Establishing client relationships
o Expanding jobs vertically
o Opening feedback channels
Overall evidence indicates that job enrichment reduces absenteeism and turnover costs
and increases satisfaction.
C. Alternative Work Arrangements
1. Flextime (exible work hours). Allows employees some discretion over when they arrive at
and leave work.
2. Job Sharing. Allows two or more individuals to split a traditional 40-hour a week job.
3. Telecommuting. Employees who do their work at home at least two days a week on a com-
puter that is linked to their ofce.
D. Reasons for and against Telecommuting
Advantages
Disadvantages
E. Dont Forget Ability and Opportunity
Success on a job is facilitated or hindered by the existence or absence of support resourc-
es.
A popular although arguably simplistic way of thinking about employee performance is as a
function of the interaction of ability and motivation; that is, performance = f(A M).
If either is inadequate, performance will be negatively affected. We need to add opportu-
nity to perform to our equationperformance = f(A M O).
II. EMPLOYEE INVOLVEMENT
A. Introduction
What Is Employee Involvement? A catchall term covering a variety of techniques-participa-
tion or participative management, workplace democracy,
Empowerment, and employee ownership.

B. Examples of Employee Involvement Programs
1. Participative Management
2. Representative Participation
3. Quality Circles
Summary
86
The evidence consistently indicates that it takes ownership and a participative style of
management to achieve signicant improvements in an organizations performance.
C. Linking Employee Involvement Programs and Motivation Theories

III. REWARDING EMPLOYEES
A. What to Pay: Establishing a Pay Structure
B. How to Pay: Rewarding Individual Employees Through Variable-Pay Programs
1. Introduction
Piece-Rate pay
Merit-Based pay
Bonuses
Prot-Sharing Plans
Gainsharing
Employee Stock Ownership Plans (ESOPs)
C. How to Pay: Rewarding Individual Employees Through Skill-Based Pay Plans
D. Linking Skill-Based Pay Plans to Motivation Theories
E. Skill-Based Pay in Practice
F. Flexible Benets: Developing a Benets Package
G. Intrinsic Rewards: Employee Recognition Programs
IV. SUMMARY AND IMPLICATIONS FOR MANAGERS
A. Recognize Individual Differences
B. Use Goals and Feedback
C. Allow Employees to Participate in Decisions That Affect Them
D. Link Rewards to Performance
E. Check the System for Equity
Self Test
87
1) What is another term for cross-training?
A) job rotation
B) job sharing
C) work enrichment
D) work enlargement
E) job enhancement

2) How do most employees react to job enlargement efforts?
A) with a lack of enthusiasm
B) mixed reaction
C) somewhat enthusiastically
D) very little reaction
E) unqualied approval

3) Which one of the following is not one of the guidelines for enriching jobs?
A) establish client relationships
B) open feedback channels
C) combine tasks
D) form job redesign units
E) expand jobs vertically

4) A rm introduces job enrichment in order to motivate its employees. Evidence would
suggest that which of the following is the most likely result of this change?
A) lower xed costs
B) reduced absenteeism and turnover costs
C) a drop in quality
D) an increase in productivity
E) a decrease in productivity

5) Participative management is a method of management where ________.
A) upper management participates in the organizations strategic planning
B) subordinates make corporate decisions and management helps carry out those deci-
sions
C) subordinates share a degree of decision-making power with their immediate superiors
D) low-level workers are responsible for making corporate policy decisions
E) low-level workers meet occasionally with the CEO to discuss problems within their
department
Self Test
88
6) What does legislation require almost every company in Western Europe to do?
A) provide extime
B) have exible benet options
C) set up quality circles
D) provide employee ownership
E) have a form of representative participation

7) Which of the following are all forms of variable-pay programs?
A) prot-sharing, lump-sum bonuses, extended vacations
B) wage incentive plans, extime, piece-rate
C) wage rate increases, bonuses, extime
D) piece-rate, wage incentive plans, gainsharing
E) retirement benets, extended vacations, wage incentive plans

8) Research on employee stock ownership programs indicates that they are clearly suc-
cessful in doing which of the following?
A) reducing stress
B) increasing employee satisfaction
C) increasing employee expectations
D) reducing salaries
E) increasing productivity

9) The average organization supplies fringe benets worth approximately what percent of
an employees salary?
A) 25
B) 30
C) 35
D) 40
E) 50

10) Why were managers in India rated low by employees?
A) They changed the traditional benets package to a exible benets plan.
B) They tried to empower their employees through employee involvement programs.
C) Their jobs had more intrinsic motivators than extrinsic motivators.
D) They refused to allow them to telecommute.
E) They changed their pay to piece-rate pay.
Answer Keys
89
Key Term Denitions
Job design: The way the elements in a job are organized
Task signicance: The degree to which a job has substantial impact on the lives or work of other
people.
Motivating potential score (MPS): A predictive index that suggest the motivating potential in a job.
Bonus: a play plan that rewards employees for recent performance rather than historical perfor-
mance.
Gainsharing: A formula based group incentive plan.
Answer Keys
90
1) A
2) A
3) D
4) B
5) C
6) E
7) D
8) B
9) D
10) B
Notes
91
Objectives
92
Chapter Number Eight
Emotions and Moods
Learning Objectives
1. Differentiate emotions from moods and list the basic emo-
tions and moods.
2. Discuss whether emotions are rational and what functions
they serve.
3. Identify the sources of emotions and moods.
4. Show the impact emotional labor has on employees.
5. Describe affective events theory and identify its applica-
tions.
6. Contrast the evidence for and against the existence of emo-
tional intelligence.
7. Apply concepts about emotions and moods to specic OB
issues.
8. Contrast the experience, interpretation, and expression of
emotions across cultures.
Overview
93
Emotions and moods are similar in that both are affective in nature. But theyre also different
moods are more general and less contextual than emotions. And events do matter. The time of day
and day of the week, stressful events, social activities, and sleep patterns are some of the factors
that inuence emotions and moods.
Emotions and moods have proven themselves to be relevant for virtually every OB topic we study.
Increasingly, organizations are selecting employees they believe have high levels of emotional
intelligence. Emotions, especially positive moods, appear to facilitate effective decision-making
and creativity. Although the research is relatively recent, research suggests that mood is linked to
motivation, especially through feedback, and that leaders rely on emotions to increase their effec-
tiveness. The display of emotions is important to negotiation and customer service, and the experi-
ence of emotions is closely linked to job attitudes and behaviors that follow from attitudes, such as
deviant behavior in the workplace.
Can managers control their colleagues and employees emotions and moods? Certainly there are
limits, practical and ethical. Emotions and moods are a natural part of an individuals makeup.
Where managers err is in ignoring their coworkers and employees emotions and assessing others
behavior as if it were completely rational. As one consultant aptly put it, You cant divorce emo-
tions from the workplace because you cant divorce emotions from people. Managers who under-
stand the role of emotions and moods will signicantly improve their ability to explain and predict
their coworkers and employees behavior.
Key Terms
94
Emotions:
Evolutionary Psychology:
Deep Acting:
Emotional Intelligence:
Summary
95
I. Why Were Emotions Ignored in OB?
A. The Myth of Rationality
B. View of Emotionality
C. Emotions cant be separated from the workplace
II. WHAT ARE EMOTIONS AND MOODS?
A. Introduction
Affect is a generic term covering a broad range of feelings; encompasses both emotions
and moods.
Emotions are intense feelings directed at someone or something.
Moods are feelings that tend to be less intense than emotions and often lack a contextual
stimulus.
Relationships among affect, emotions and mood.
B. A Basic Set of Emotions
Research efforts to limit and dene emotions into a fundamental set of emotions.
Contemporary research studies facial expressions.
Cultural factors govern emotional expression.
Agreement on six essentially universal emotions.
C. Some Aspects of Emotions
1. The Biology of Emotions
2. Intensity
3. Frequency and Duration
4. Do Emotions Make Us Rational?
5. What Functions Do Emotions Serve?
Evolutionary psychology eld of study says we must experience emotions because they
serve a purpose. Based on Darwins work.
D. Mood as Positive and Negative Affect
Positive emotions express a favorable evaluation or feeling.
Negative emotions express the opposite.
Grouping emotions into positive and negative categories become mood states.
o Positive affect consists of positive emotions (excitement, cheerfulness, etc)
o Negative affect consists of nervousness, stress, etc.
Negative emotions are likely to translate into negative moods.
Positivity offsetwhen nothing in particular is going on, most individuals experience a
mildly positive mood.
E. Sources of Emotions and Moods
1. Personality
Predisposes people to experience certain moods and emotions
Affect intensityindividual differences in the strength with which individuals experience
their emotions
Positive events are more likely to affect the positive mood and positive emotions of extra-
verts
Negative events are more likely to inuence the negative mood and negative emotions of
those scoring low on emotional stability
2. Day of the Week and Time of the Day
3. Weather
4. Stress
5. Social Activities
Summary
96
6. Sleep
7. Exercise
8. Age
Negative emotions tend to occur less when people get older
9. Gender
Differences between men and women
F. External Constraints on Emotions
1. Organizational Inuences
2. Cultural Inuences
III. EMOTIONAL LABOR
A. Introduction
When an employee expresses organizationally desired emotions during interpersonal trans-
actions
o Emotional dissonance
B. Felt Versus Displayed Emotions
Felt and displayed motions are often different. Role demands may require people to exhibit
emotional behaviors that mask their true feelings.
C. Are Emotionally Demanding Jobs Rewarded with Better Pay?
Positive but weak correlation between jobs cognitive demands and emotional demands.
Exhibit 85 relationship between cognitive and emotional demands and pay.
IV. AFFECTIVE EVENTS THEORY
Affective Events Theory (AET)
o Emotions are part of how people behave; provide valuable insights in understanding
employee behavior.
V. EMOTIONAL INTELLIGENCE
A. Introduction
Five dimensions:
o Self-awareness
o Self-management
o Self-motivation
o Empathy
o Social skills
B. The Case for EI
1. Intuitive Appeal
2. EI Predicts Criteria That Matter
3. EI Is Biologically-Based
C. The Case Against EI
1. EI Is Too Vague a Concept.
2. EI Cant Be Measured.
3. The Validity of EI Is Suspect.
Summary
97
VI. OB APPLICATIONS OF EMOTIONS AND MOODS
A. Selection
More employers are beginning to use EI to hire people.
B. Decision Making
Feelings (emotions) affect decision making
C. Creativity
People in good moods more creative than those in bad moods.
D. Motivation
E. Leadership
F. Negotiation
G. Customer Service
H. Job Attitudes
I. Deviant Workplace Behaviors
J. How Managers Can Inuence Moods
What can companies do to improve their employees moods?
Managers can use humor, give small tokens of appreciation.
When leaders are in good moods, group members are more positive.
VII. SUMMARY AND IMPLICATIONS FOR MANAGERS
A. Moods and emotions are both affective, they are part of an individuals makeup
Emotions are effected by events more readily than moods
Managers should pay attention to emotions of their employees
B. Job Performance
o Negative emotions can hinder job performance
o Positive emotions can enhance job performance in two ways
Increase arousal for job
Recognize emotional labor as part of the job
C. Functional/Dysfunctional emotions
The more complex a task, the less emotional an employee can be before emotions interfere
with job performance
Self Test
98
1) Erin works on a software help desk. After being yelled at by a customer about the
state of her companys software, she becomes angry, and has to take a short break to
calm down. What makes her anger an emotion, rather than a mood?
A) It cannot be controlled when it is elicited.
B) It has a contextual stimulus.
C) It can be controlled given some time.
D) It interferes with her capacity to work effectively.
E) It is a simple, unambiguous feeling.

2) Which of the following is a mood dimension consisting of nervousness, stress, and
anxiety at one end and relaxation, tranquility, and poise at the other?
A) static regard
B) negative affect
C) emotional range
D) positive regard
E) positive affect

3) Differences in which of the following results in different people giving different re-
sponses to identical emotion-provoking stimuli?

A) pervasiveness
B) consistency
C) consensus
D) personality
E) intensity

4) What effect does stress typically have on mood?
A) short term positive but long term negative
B) long-term positive
C) small and insignicant
D) negative
E) short-term positive

5) According to a recent poll, people are getting ________ sleep than they did in the
past.
A) lighter
B) less
C) deeper
D) more
E) higher quality
Self Test
99
6) If an employee expresses organizationally desired emotions during interpersonal trans-
actions, which of the following is being expressed?
A) deviance
B) emotional labor
C) dissonance
D) emotional intelligence
E) negative synergy

7) Surface acting deals only with ________ emotions.
A) felt
B) negative
C) weak
D) strong
E) displayed

8) Whether a candidate has high emotional intelligence would not be a signicant factor
when considering candidates for which of the following jobs?
A) An interviewer who assesses candidates in an employment agency.
B) A meeting planner who must set up meetings for candidates around the world.
C) An engineer heading up a team designing a complex software/hardware interface.
D) A realtor arranging sales between homeowners and potential buyers.
E) A copy-editor who seeks out spelling errors and grammatical mistakes in manuscripts.

9) Studies show that people who are depressed tend to make poorer decisions than
those with a more positive outlook. Why is this thought to be the case?
A) They tend to put too great a value on their own ability to affect outcomes.
B) They tend to choose an outcome that will conrm their negative worldview.
C) They rarely weigh up all the options when making a decision.
D) They avoid stereotyping and other behaviors that allow them to come to a rapid deci-
sion.
E) They search for the perfect solution when rarely is any solution perfect.

Amber and Emmet were recently hired at a marketing agency. While Amber is typically in
a good mood, Emmet appears to be depressed most of the time.

10) What might Amber use to help her make good decisions quickly?
A) holistics
B) less judgment
C) heuristics
D) shortcuts
E) selection bias
Answer Keys
100
Key Term Denitions
Emotions: Intense feelings that are directed at someone or something.
Evolutionary Psychology: An area of inquiry which argues that we must experience the emotions we
do because they serve a purpose.
Deep Acting: Trying to modify ones true inner feelings based on display rules.
Emotional Intelligence: The ability to detect and to manage emotional cues and information.
Answer Keys
101
1) B
2) B
3) D
4) D
5) B
6) B
7) E
8) E
9) E
10) C
Notes
102
Unit 2 Examination
Instructions
103
grading system:
B = 80% 89% correct
C = 70% 79% correct
D = 60% 69% correct
4 grade points
3 grade points
2 grade points
1 grade point
0 grade points
Completing Unit Two Examination
Unit 2 Examination
104
1) What is the relationship between what one perceives and objective reality?
A) They are the same.
B) They should be the same.
C) They cannot be the same.
D) They are rarely if ever the same.
E) They can be substantially different.

2) Which of the following is not true about our perceptions of a target?
A) Objects that are close together will be perceived together rather than separately.
B) Objects that are distant from one another will be perceived separately rather than as a
group.
C) Motion, sounds, size, and other attributes of a target shape the way we see it.
D) Targets are usually looked at in isolation.
E) Persons that are similar to each other tend to be grouped together.

3) The more consistent a behavior, the more the observer is inclined to ________.
A) attribute it to consensus
B) attribute it to interpretation
C) attribute it to distinctiveness
D) attribute it to external causes
E) attribute it to internal causes

4) Investors bragged about their investing expertise during the stock market rally
between 1996 and early 2000, then blamed analysts, brokers, and the Federal
Reserve when the market imploded in 2000. These investors were most probably
guilty of what?
A) self-serving bias
B) fundamental attribution error
C) the halo effect
E) distinctiveness

5) Mel has exceeded her budget by at least $200 every month for the last three months.
After recognizing that this is a problem, she decides to use the rational decision-
making model to decide what to do. What might be the next step she takes if she fol-
lows this model?
A) weigh the relative importance of each of her expenses
B) evaluate different ways that she could use to either reduce her expenses or increase
her income
C) come up with different ways that would either reduce her expenses or increase her
income
D) determine what she needs to take into account when making her decision
E) choose a method to cut her expenses
Unit 2 Examination
105
6) Which is not one of the steps in the rational decision-making model?
A) dening the problem
B) identifying the decision criteria
C) rating the alternatives
D) selecting the best alternative
E) computing the decision alternatives

7) What do we call the tendency for people to base their judgments on information that
they can easily obtain?
A) anchoring bias
B) conrmation bias
C) representative bias
D) principality
E) availability bias

8) Avoiding making decisions on Friday the 13th can be an example of which bias?
A) representative
B) conrmation
C) substitution
D) commitment
E) randomness

9) What trait does a decision maker need to have if they are to fully appraise a problem
and even see problems that others are not aware of?
A) individuality
B) creativity
C) intuition
D) rationality
E) conceptual style

10) According to McClelland, what is the need to make others behave in a way that they
would not have behaved otherwise?
A) the need for control
B) the need for afliation
C) the need for achievement
D) the need for social validation
E) the need for power
Unit 2 Examination
106

11) You are supervising a team leader in charge of training employees to use a new phone
system. According to McClelland, which of the following courses of action will best
ensure this employee stays motivated in his task?
A) Closely supervise him, and provide a great deal of feedback.
B) Trust him to do the job independently, and do not give feedback until the project is
completed.
C) Trust him to do the job independently, but do not fail to provide plenty of feedback.
D) Trust him to do the job independently, and do not give any feedback unless it is asked
for.
E) Closely supervise him, and provide moderate amounts of feedback.

12) According to the goal-setting theory of motivation, highest performance is reached
when goals are set to which level?
A) impossible but inspirational
B) only marginally challenging
C) slightly beyond a persons actual potential
D) difcult but attainable
E) easily attained

13) What is generally considered to be the single best thing that managers can do to im-
prove performance?
A) give abundant opportunities for employee growth
B) set specic, challenging goals
C) restrict the use of punishment as a means of motivating workers
D) allocate tasks depending on personality
E) concentrate on intrinsic rewards rather than extrinsic rewards

14) What sort of goals does Management by Objectives (MBO) emphasize?
A) inspirational, teachable, and creative
B) achievable, controllable, and protable
C) hierarchical, attainable, and effective
D) challenging, emotional, and constructive
E) tangible, veriable, and measurable

You graduated from college two years ago and began working at Hampstead Electronics.
You have received good performance evaluations and a raise. You just found out that a
recent college graduate with no experience has been hired at a higher salary than you are
now making.
15) Your referent comparison for equity theory is termed ________.
Unit 2 Examination
107
A) inside-outside
B) self-inside
C) self-outside
D) other-outside
E) other-inside

16) In the job characteristics model (JCM), what three core job dimensions combine to
create meaningful work?
A) feedback, task identity, and task signicance
B) skill variety, autonomy, and feedback
C) autonomy, task identity, and feedback
D) skill variety, autonomy, and task signicance
E) skill variety, task identity, and task signicance

17) Which one of the following is not one of the guidelines for enriching jobs?
A) expand jobs vertically
B) form job redesign units
C) establish client relationships
D) open feedback channels
E) combine tasks

18) What is the term used for the situation where employees are allowed to pick and
choose from among a menu of benet options?
A) extime
B) exible pay
C) exible benets
D) benet participation
E) benet menu options

19) The average organization supplies fringe benets worth approximately what percent of
an employees salary?
A) 25
B) 30
C) 35
D) 40
E) 50
Unit 2 Examination
108
20) Today, what are offered by almost all U.S. corporations and are becoming the norm in
other countries?
A) employee involvement
B) exible benets
C) variable-pay programs
D) employee recognition programs
E) ESOPs

21) Which of the following is a mood dimension consisting of positive emotions?
A) emotional range
B) positive regard
C) positive affect
D) static regard
E) negative affect

22) Evolutionary psychology has which of the following views on negative emotions such
as anger and jealousy?
A) They are only negative in the way they make us feel, however they are a great help
when we have to interact in complex situations.
B) They are vestiges of our past as hunter gatherers that will be lost as we continue to
evolve.
C) They serve to protect our rights when we feel that they are being violated.
D) They are a biological imperative that cannot be controlled.
E) They are necessary if we are to function efciently amid the stresses of contemporary
life.

23) Research shows that for most people, the effect of social activities is which of the
following?
A) They decrease positive mood.
B) They increase negative mood.
C) They increase positive mood.
D) They will have little effect on mood.
E) They decrease negative mood.
24) Surface acting deals only with ________ emotions.
A) negative
B) displayed
C) strong
D) weak
E) felt

Unit 2 Examination
109
25) Studies show that people who are depressed tend to make poorer decisions than
those with a more positive outlook. Why is this thought to be the case?
A) They search for the perfect solution when rarely is any solution perfect.
B) They tend to choose an outcome that will conrm their negative worldview.
C) They tend to put too great a value on their own ability to affect outcomes.
D) They rarely weigh up all the options when making a decision.
E) They avoid stereotyping and other behaviors that allow them to come to a rapid deci-
sion.
Unit 2 Examination
110
Written Assignment for Unit Two

Plagiarism
1) What factors that operate to shape and sometimes distort perception reside in the
perceiver, what factors reside in the target being perceived, and what factors reside in
the context of the situation?

2) Discuss the three-component model of creativity.

3) Discuss equity theory. Include the concepts of equity tension, referent comparisons,
and how employees might reduce perceived inequity.
You Can Do It
111
With Unit 2 complete, you are half way through the course.
Take a break and reward yourself
for a job well done!
Objectives
112
Chapter Number Nine
Foundations of Group Behavior
Learning Objectives
1. Dene group and differentiate between different types of
groups.
2. Identify the ve stages of group development.
3. Show how role requirements change in different situations.
4. Demonstrate how norms and status exert inuence on an
individuals behavior.
5. Show how group size affects group performance.
6. Contrast the benets and disadvantages of cohesive groups.
7. Contrast the strengths and weaknesses of group decision
making.
8. Compare the effectiveness of interacting, brainstorming,
nominal, and electronic meeting groups.
9. Evaluate evidence for cultural differences in group status
and social loang, as well as the effects of diversity in
groups.
Overview
113
Performance- A number of group properties show a relationship with performance. Among the
most prominent are role perception, norms, status differences, size of the group, and cohesiveness.
There is a positive relationship between role perception and an employees performance evalu-
ation. The degree of congruence that exists between an employee and the boss in the perception of
the employees job inuences the degree to which the boss will judge that employee as an effective
performer. To the extent that the employees role perception fullls the bosss role expectations, the
employee will receive a higher performance evaluation.
Norms control group member behavior by establishing standards of right and wrong. The
norms of a given group can help to explain the behaviors of its members for managers. When
norms support high output, managers can expect individual performance to be markedly higher
than when group norms aim to restrict output. Similarly, norms that support antisocial behavior
increase the likelihood that individuals will engage in deviant workplace activities.
Status inequities create frustration and can adversely inuence productivity and the willing-
ness to remain with an organization. Among individuals who are equity sensitive, incongruence is
likely to lead to reduced motivation and an increased search for ways to bring about fairness (for
example, taking another job). In addition, because lower-status people tend to participate less in
group discussions, groups characterized by high status differences among members are likely to
inhibit input from the lower-status members and to under-perform their potential.
The impact of size on a groups performance depends on the type of task in which the group is
engaged. Larger groups are more effective at fact-nding activities. Smaller groups are more effec-
tive at action-taking tasks. Our knowledge of social loang suggests that if management uses larger
groups, efforts should be made to provide measures of individual performance within the group.
Cohesiveness can play an important function in inuencing a groups level of productivity. Whether
it does depends on the groups performance-related norms.
Satisfaction- As with the role perceptionperformance relationship, high congruence between a
boss and an employee as to the perception of the employees job shows a signicant association
with high employee satisfaction. Similarly, role conict is associated with job-induced tension and
job dissatisfaction.
Most people prefer to communicate with others at their own status level or a higher one rather
than with those below them. As a result, we should expect satisfaction to be greater among em-
ployees whose job minimizes interaction with individuals who are lower in status than themselves.
The group sizesatisfaction relationship is what one would intuitively expect: Larger groups are
associated with lower satisfaction. As size increases, opportunities for participation and social
interaction decrease, as does the ability of members to identify with the groups accomplishments.
At the same time, having more members also prompts dissension, conict, and the formation of
subgroups, which all act to make the group a less pleasant entity of which to be a part.
Key Terms
114
Group:
Role:
Norms:
Status:
Cohesiveness:
Summary
115
I. DEFINING AND CLASSIFYING GROUPS
A group is dened as two or more individuals, interacting and interdependent, who have
come together to achieve particular objectives.
Groups can be either formal or informal.
It is possible to sub-classify groups as command, task, interest, or friendship groups.
Exhibit 91 provides information on why people join groups.
II. STAGES OF GROUP DEVELOPMENT
A. The Five-Stage Model
Forming:
o Characterized by a great deal of uncertainty about the groups purpose, structure, and
leadership.
Storming:
o One of intra-group conict. Members accept the existence of the group, but there is
resistance to constraints on individuality.
Norming:
o One in which close relationships develop and the group demonstrates cohesiveness.
Performing:
o The structure at this point is fully functional and accepted.
Adjourning:
o For temporary committees, teams, task forces, and similar groups that have a limited
task to perform, there is an adjourning stage.
Many assume that a group becomes more effective as it progresses through the rst four
stages. While generally true, what makes a group effective is more complex. Under some
conditions, high levels of conict are conducive to high group performance.
Groups do not always proceed clearly from one stage to the next. Sometimes several stages
go on simultaneously. Groups occasionally regress to previous stages.
B. An Alternative Model: For Temporary Groups with Deadlines
Temporary groups with deadlines follow a pattern called the punctuated-equilibrium
model.
Phase IThe rst meeting sets the groups direction; the rst inertia phase.
Then a transition takes place when the group has used up half its allotted time.
o The groups direction becomes xed and is unlikely to be reexamined throughout the
rst half of the groups life.
The midpoint appears to work like an alarm clock, heightening members awareness that
their time is limited and that they need to get moving.
This ends Phase 1 and is characterized by a concentrated burst of changes, dropping of
old patterns, and adoption of new perspectives.
Phase 2 is a new equilibrium or period of inertia. In this phase, the group executes plans
created during the transition period.
The groups last meeting is characterized by markedly accelerated activity.
The punctuated-equilibrium model characterizes groups as exhibiting long periods of iner-
tia interspersed with brief revolutionary changes triggered primarily by their members
awareness of time and deadlines.
Summary
116
III. GROUP PROPERTIES: ROLES, NORMS, STATUS, SIZE, AND COHESIVENESS
A. Introduction
A set of expected behavior patterns attributed to someone occupying a given position in a
social unit.
B. Roles
1.Introduction
2. Role Identity
There are certain attitudes and actual behaviors consistent with a role, and they create the
role identity.
3. Role Perception
Ones view of how one is supposed to act in a given situation is a role perception.
4. Role Expectations
How others believe you should act in a given situation
5. Role Conict
It exists when compliance with one role requirement may make more difcult the compli-
ance with another.
6. An Experiment: Zimbardos Prison Experiment
Conducted by Stanford University psychologist Philip Zimbardo and associates. They cre-
ated a prison in the basement of the Stanford psychology building.
o At the start of the planned two-week experiment, there were no measurable differences
between those assigned to be guards and those chosen to be prisoners.
The simulation actually proved too successful in demonstrating how quickly individuals
learn new roles. The researchers had to stop the experiment after only six days because of
the pathological reactions that the participants were demonstrating.
What should you conclude from this prison simulation?
o The participants had learned stereotyped conceptions of guard and prisoner roles from
the mass media and their own personal experiences in power and powerless relation-
ships at home.
o This allowed them easily and rapidly to assume roles that were very different from their
inherent personalities.
C. Norms
1. Introduction
All groups have normsacceptable standards of behavior that are shared by the groups
members. Norms tell members what they ought and ought not to do under certain cir-
cumstances.
2. The Hawthorne Studies
Studies conclude that a workers behavior and sentiments were closely related.
Group inuences were signicant in affecting individual behavior.
Group standards were highly effective in establishing individual worker output.

3. Common Classes of Norms
A work groups norms are unique, yet there are still some common classes of norms.
o Performance norms are probably the most common class of norms.
o Appearance norms include things like appropriate dress, loyalty to the work group or
organization, when to look busy, and when it is acceptable to goof off.
o Social arrangement norms come from informal work groups and primarily regulate social
interactions within the group.
o Allocation of resources norms can originate in the group or in the organization.
Summary
117
4. Conformity
Considerable evidence that groups can place strong pressures on individual members to
change their attitudes and behaviors to conform to the groups standard.
The pressure that group exerts for conformity was demonstrated by Solomon Asch.
There have been changes in the level of conformity over time. Levels of conformity have
steadily declined.
Aschs ndings are culture-bound. Conformity to social norms is higher in collectivist cul-
tures than in individualistic cultures.
5. Deviant Workplace Behavior:
This term covers a full range of antisocial actions by organizational members that inten-
tionally violate established norms and that result in negative consequences for the organi-
zation, its members, or both.
D. Status
1. Introduction
Denition: Status is a socially dened position or rank given to groups or group members
by others. We live in a class-structured society despite all attempts to make it more egali-
tarian.
2. What Determines Status?
Status derived from one of three sources: the power a person wields over others; a persons
ability to contribute to groups goals; individuals personal characteristics.
3. Status and Norms
High-status members of groups often are given more freedom to deviate from norms than
other group members.
4. Status and Group Interaction
Interaction is inuenced by status
5. Status Inequity
When inequity is perceived, it creates disequilibrium that results in corrective behavior.
6. Status and Culture
Cultural differences affect status. For example, the French are highly status conscious.
Countries differ on the criteria that create status.
E. Size
The size of a group affects the groups overall behavior, but the effect depends on the
dependent variables:
o Smaller groups are faster at completing tasks than are larger ones.
o If the group is engaged in problem solving, large groups consistently do better.
Social loang is the tendency for individuals to expend less effort when working collec-
tively than when working individually.
o A common stereotype about groups is that team spirit spurs individual effort and en-
hances overall productivity.
o Increases in group size are inversely related to individual performance.
o Causes of social loang:
> There will be a reduction in efciency where individuals think that their contribu-
tion cannot be measured.
Implications for OB:
o Where managers utilize collective work situations to enhance morale and teamwork, they
must also provide means by which individual efforts can be identied.
Other conclusions about groups:
o Groups with an odd number of members tend to be preferable.
o Groups made up of ve or seven members do a pretty good job of exercising the best
elements of both small and large groups.
Summary
118
F. Cohesiveness
The degree to which members are attracted to each other and are motivated to stay in
the group.
Cohesiveness is important because it has been found to be related to the groups produc-
tivity.
How to encourage group cohesiveness:
o Make the group smaller.
o Encourage agreement with group goals.
o Increase the time members spend together.
o Increase the status of the group and the perceived difculty of attaining membership in
the group.
o Stimulate competition with other groups.
o Give rewards to the group rather than to individual members.
o Physically isolate the group.
IV. GROUP DECISION MAKING
A. Groups Versus the Individual
1. Strengths of Group Decision Making
Groups generate more complete information and knowledge.
They offer increased diversity of views.
2. Weaknesses of Group Decision Making
They are time consuming.
There is a conformity pressure in groups.
3. Effectiveness and Efciency
In terms of accuracy, group decisions will tend to be more accurate.
On the average, groups make better-quality decisions than individuals.
In terms of efciency, groups almost always stack up as a poor second to the individual
decision maker. The exceptions tend to be those instances where, to achieve comparable
quantities of diverse input, the single decision maker must spend a great deal of time
reviewing les and talking to people.
4. Summary
Groups offer an excellent vehicle for performing many of the steps in the decision-making
process.
Group decisions consume time, create internal conicts, and generate pressures toward
conformity.
B. Groupthink and Groupshift
1. Groupthink
Groupthink is related to norms:
o It describes situations in which group pressures for conformity deter the group from
critically appraising unusual, minority, or unpopular views.
Groupthink occurs when group members become so enamored of seeking concurrence that
the norm for consensus overrides the realistic appraisal of alternative courses of action and
the full expression of deviant, minority, or unpopular views.
Symptoms of Groupthink include: The phenomenon that occurs when group members
become so enamored of seeking concurrence is that the norm for consensus overrides the
realistic appraisal of alternative courses of action and the full expression of deviant, minor-
ity, or unpopular views.
Summary
119
o Group members rationalize any resistance to the assumptions they have made.
o Members apply direct pressures on those who momentarily express doubts.
Groupthink appears to be closely aligned with the conclusions Asch drew from his experi-
ments on the lone dissenter. The results were that individuals who hold a position different
from the majority are put under pressure to suppress or change their true beliefs.
2. Groupshift
It indicates that, in discussing a given set of alternatives and arriving at a solution, group
members tend to exaggerate the initial positions that they held. In some situations, cau-
tion dominates, and there is a conservative shift.
The groupshift can be viewed as actually a special case of groupthink. The decision of the
group reects the dominant decision-making norm that develops during the groups discus-
sion.
Implications of Groupshift:
o Recognize that group decisions exaggerate the initial position of the individual
members.
o The shift has been shown more often to be toward greater risk.
C. Group Decision-Making Techniques
Most group decision making takes place in interacting groups
Brainstorming:
o It is meant to overcome pressures for conformity in the interacting group that retard the
development of creative alternatives.
The nominal group technique:
o Restricts discussion or interpersonal communication during the decision-making process
The computer-assisted group or electronic meeting blends the nominal group technique
with sophisticated computer technology.
A. Performance
B. Satisfaction
Self Test
120
1) After which stage of a groups development is there a relatively clear hierarchy of
leadership within the group?
A) forming
B) storming
C) evolution
D) development
E) norming

2) Temporary groups with deadlines tend to follow the ________ model.
A) ve-stage group development
B) punctuated equilibrium
C) sociometry
D) frantic action
E) cluster variance

3) Which of the following was the major nding of Zimbardos simulated prison experi-
ment?
A) An individuals emotions and the behavioral responses to those emotions are congru-
ent.
B) When given the opportunity, people will tend to act in an oppressive manner to those
around them.
C) Group cohesiveness is so important that individuals will restrain their natural impuls-
es in order to remain part of the group.
D) Individuals can rapidly assimilate new roles very different from their inherent person-
alities.
E) Status differences between groups will always result in conict between those groups.

4) Which of the following is an effective means of countering social loang?
A) increase the rewards the group is given if it succeeds
B) increase the amount by which the groups progress is monitored
C) provide means by which individual efforts can be identied
D) increase the groups workload
E) increase the size of the group

5) Group decisions are generally preferable to individual decisions when which of the
following is sought?
A) speed
B) efciency
C) acceptance of the solution
D) clear responsibility
E) a conjunctive solution
Self Test
121
6) Which is not a weakness of group decision making?
A) Its not clear who is accountable for bad decisions.
B) There is less originality.
C) It is time consuming.
D) It can be dominated by one or a few members.
E) It suffers from ambiguous responsibility.

7) Individual decisions are generally preferable to group decisions when which of the fol-
lowing is sought?
A) creativity
B) acceptance
C) quality
D) broad unanimity
E) speed

8) What sort of group should you avoid if you want to minimize interpersonal conict?
A) social
B) interacting
C) brainstorming
D) nominal
E) electronic

Your organization is considering the use of team decision making. You have read the
literature on decision making and are trying to inform your manager about the advantages
and disadvantages of group decision making.

9) You should expect to nd that ________.
A) group discussions will be shared equally
B) groups will nd reaching a decision to be less effortful than individuals
C) group decision making will be faster
D) group decision making will be very costly
E) there will be increased acceptance of the decision

10) You should expect a weakness of group decision making to be ________.
A) the decision will probably be a lower quality decision
B) less complete knowledge
C) decreased risky shift
D) more time will be used to make the decision
E) employees will be less accepting of the group decision
Answer Keys
122
Key Term Denitions
Group: Two or more individuals, interacting and interdependent, who have come together to
achieve particular objectives.
Role: A set of expected behavior patters attributed to someone occupying a given position in a
social unit.
Norms: Acceptable standards of behavior within a group that are shared by the groups members.
Status: A socially dened position or rank given to groups or group members by others.
Cohesiveness: The degree to which group members are attracted to each other and are motivated
to stay in the group.
Answer Keys
123
1) B
2) B
3) D
4) C
5) C
6) B
7) E
8) B
9) E
10) D
Notes
124
Objectives
125
Chapter Number Ten
Understanding Work Teams
Learning Objectives
1. Analyze the growing popularity of using teams in organiza-
tions.
2. Contrast groups and teams.
3. Compare and contrast four types of teams.
4. Identify the characteristics of effective teams.
5. Show how organizations can create team players.
6. Decide when to use individuals instead of teams.
7. Show how the understanding of teams differs in a global
context.
Overview
126
Few trends have inuenced jobs as much as the massive movement to introduce teams into
the workplace. The shift from working alone to working on teams requires employees to cooper-
ate with others, share information, confront differences, and sublimate personal interests for the
greater good of the team.
Effective teams have common characteristics. They have adequate resources, effective
leadership, a climate of trust, and a performance evaluation and reward system that reects team
contributions. These teams have individuals with technical expertise, as well as problem-solving,
decision-making, and interpersonal skills and the right traits, especially conscientiousness and
openness. Effective teams also tend to be smallwith fewer than 10 people, preferably of diverse
backgrounds. They have members who ll role demands and who prefer to be part of a group. And
the work that members do provides freedom and autonomy, the opportunity to use different skills
and talents, the ability to complete a whole and identiable task or product, and work that has
a substantial impact on others. Finally, effective teams have members who believe in the teams
capabilities and are committed to a common plan and purpose, an accurate shared mental model
of what is to be accomplished, specic team goals, a manageable level of conict, and a minimal
degree of social loang.
Because individualistic organizations and societies attract and reward individual accomplish-
ments, it is can be difcult to create team players in these environments. To make the conversion,
management should try to select individuals who have the interpersonal skills to be effective team
players, provide training to develop teamwork skills, and reward individuals for cooperative efforts.
Key Terms
127
Work Group:
Work team:
Virtual Teams:
Reectivity:
Mental Models:
Summary
128
I. WHY HAVE TEAMS BECOME SO POPULAR?
The current popularity of teams seems based on the evidence that teams typically outper-
form individuals when the tasks being done require multiple skills, judgment, and experience.
II. DIFFERENCES BETWEEN GROUPS AND TEAMS
Groups and Teams are not the same thing. (See Exhibit 101)
A work team generates positive synergy through coordinated effort. Individual efforts result
in a level of performance that is greater than the sum of those individual inputs.
The extensive use of teams creates the potential for an organization to generate greater
outputs with no increase in inputs. Merely calling a group a team doesnt automatically increase its
performance.
III. TYPES OF TEAMS
A. Problem-Solving Teams
B. Self-Managed Work Teams
C. Cross-Functional Teams
D. Virtual Teams
IV. CREATING EFFECTIVE TEAMS
A. Introduction
Factors for creating effective teams have been summarized in the model found in Exhibit
103.
Four-key components:
o Contextual inuences
o Teams composition
o Work design
o Process variables
B. Context
1. Adequate Resources
2. Leadership and Structure
3. Climate of Trust
4. Performance Evaluation and Reward Systems
C. Composition
1. Abilities of Members
2. Personality
3. Allocating Roles
4. Diversity
5. Size of Teams
6. Member Flexibility
7. Member Preferences
D. Work Design
E. Process
1. A Common Process
2. Specic Goals
3. Team Efcacy
4. Conict Levels
5. Social Loang
Summary
129
V. TURNING INDIVIDUALS INTO TEAM PLAYERS
A. Introduction
Many people are not inherently team players. They are loners or want to be recognized for
their own accomplishments.
There are also a great many organizations that have historically nurtured individual accom-
plishments. How do we introduce teams in highly individualistic environments?
B. The Challenge
An employees success is no longer dened in terms of individual performance.
o To perform well as team members, individuals must be able to communicate openly and
honestly, to confront differences and resolve conicts, and to sublimate personal goals
for the good of the team.
C. Shaping Team Players
1. Selection
2. Training
3. Rewards
VI. BEWARE! TEAMS ARE NOT ALWAYS THE ANSWER
Teamwork takes more time and often more resources than individual work.
o Teams increase communication demands, conicts to be managed, and meetings to be
run.
VII. SUMMARY AND IMPLICATIONS FOR MANAGERS
A. Effective Teams have several things in common:
Adequate resources
Effective leadership
Climate of trust
Reward systems based on teamwork
B. Individuals on teams are:
Committed to a common purpose
Have specic team goals
Believe in the teams capabilities
Manage conict
Keep social loang to a minimum
Self Test
130
1) Which of the following helps explain the current popularity of teams? Teams
________.
A) are less expensive
B) are a way to better utilize employee talents
C) are very efcient
D) are easier to manage
E) promote socialization

2) To succeed in achieving their goals, teams must ________.
A) have strong leadership
B) receive support from management
C) have autonomy
D) all of the above

3) In a ________ team the managers job becomes managing outside the team.
A) management
B) self-managed
C) technical
D) problem-solving
E) reactive

4) Evidence tends to suggest that performance across teams will be higher if an organi-
zation ________.
A) forms only teams low in conscientiousness
B) seeds each team with a few people who score high on conscientiousness
C) forms both teams high in conscientious and teams low in conscientiousness
D) seeds each team with a few people who score low on conscientiousness
E) forms only teams high in conscientiousness

5) The most effective teams tend to have ________ members.
A) 3 to 5
B) 5 to 15
C) less than 10
D) 10 to 20
E) more than 20
Self Test
131
6) What is a team called when its members consider and adjust their master plan when
necessary?
A) mental models
B) goal congruent
C) social facilitating
D) reexive
E) social loang

7) Which of the following is most likely to increase team efcacy?
A) ensuring that team goals are challenging
B) helping the team achieve small successes
C) providing measurable goals
D) limiting time spent in training
E) reducing the number of members on a team

You are the vice-president of a division of a large, multi-national company that makes
electronic equipment for consumers and the military. You have several managers that have
created some teams. Also, there are several projects underway and you need to decide
what types of teams to use for each situation.

8) Jack, your director of manufacturing, has decided to create a team of eleven employ-
ees from quality control. Jack gives the team members the responsibility of sched-
uling their own work and evaluating each others performance. This is an example of a
________ team.
A) cross-functional
B) task-resolution
C) problem-solving
D) self-managed
E) virtual

9) Your company has recently landed a contract to design and manufacture a new state-
of-the-art electronic device for the military. This will be a very complex project, requir-
ing many different types of skills. Which of the following types of teams is most
suited for the project?
A) problem-solving
B) self-managed
C) virtual
D) task-resolution
E) cross-functional

Self Test
132
You work for an international company that has ofces around the world. You have been
asked to pull together a global virtual team to handle a specic project. The project is
expected to take 3 to 5 years to complete. You are free to include individuals from any of
the companys ofces, which are located in the United States, Canada, Mexico, Britain,
Australia, and Japan.

10) Provided that all of the team members are equally qualied, which of the following
teams is likely to be the least challenging to manage?
A) A team comprised primarily of members from either Japan or Mexico, because em-
ployees from countries with collectivist values tend to adjust easily to team struc-
tures.
B) A team comprised primarily of members from the United States, because employees
from countries with individualistic values tend to function well in teams.
C) A team comprised of members drawn equally from all of the companys ofces, be-
cause culturally diverse teams tend to operate with minimal conict.
D) A team comprised primarily of members from Canada, Britain, and Australia, because
employees from these countries usually grow up learning how to function in teams.
E) A team comprised of members from both Japan and Mexico, because employees from
these countries tend to focus on individual accomplishments.
Answer Keys
133
Key Term Denitions
Work Group: A group that interacts primarily to share information and to make decision to help
each group member perform within his or her area of responsibility.
Work team: A group whose individual efforts result in performance that is greater than the sum of
the individual inputs.
Virtual Teams: Team that use computer technology to tie together physically dispersed members in
order to achieve a common goal.
Reectivity: A team characteristic of reecting on and adjusting the master plan necessary.
Mental Models: Team members knowledge and beliefs about how the work gets done by the team.
Answer Keys
134
1) B
2) B
3) B
4) C
5) C
6) D
7) B
8) D
9) E
10) A
Notes
135
Objectives
136
Chapter Number Eleven
Communication
Learning Objectives
1. Identify the main functions of communication.
2. Describe the communication process and distinguish be-
tween formal and informal communication.
3. Contrast downward, upward, and lateral communication and
provide examples of each.
4. Contrast oral, written, and nonverbal communication.
5. Contrast formal communication networks and the grapevine.
6. Analyze the advantages and challenges of electronic com-
munication.
7. Show how channel richness underlies the choice of commu-
nication channel.
Overview
137
A careful review of this chapter yields a common theme regarding the relationship between com-
munication and employee satisfaction: The less the uncertainty, the greater the satisfaction. Distor-
tions, ambiguities, and incongruities in communications all increase uncertainty and, hence, they
have a negative impact on satisfaction.

The less distortion that occurs in communication, the more that goals, feedback, and other
management messages to employees will be received as they were intended. This, in turn, should
reduce ambiguities and clarify the groups task. Extensive use of vertical, lateral, and informal
channels will increase communication ow, reduce uncertainty, and improve group performance
and satisfaction. We should also expect incongruities between verbal and nonverbal communiqus
to increase uncertainty and to reduce satisfaction.

Findings in the chapter further suggest that the goal of perfect communication is unattain-
able. Yet, there is evidence that demonstrates a positive relationship between effective communi-
cation (which includes factors such as perceived trust, perceived accuracy, desire for interaction,
top-management receptiveness, and upward information requirements) and worker productivity.
Choosing the correct channel, being an effective listener, and using feedback may, therefore, make
for more effective communication. But the human factor generates distortions that can never be
fully eliminated. The communication process represents an exchange of messages, but the out-
come is meanings that may or may not approximate those that the sender intended. Whatever
the senders expectations, the decoded message in the mind of the receiver represents his or her
reality. And it is this reality that will determine performance, along with the individuals level of
motivation and degree of satisfaction.

Paying close attention to communication effectiveness is all the more important given the
ways in which communication technology has transformed the workplace. Despite the great advan-
tages of electronic communication formats, the pitfalls are numerous. Because we gather so much
meaning from how a message is communicated (voice tone, facial expressions, body language),
the potential for misunderstandings in electronic communication is great. E-mail, IM and TM, and
networking software are vital aspects of organizational communication, but we need to use these
tools wisely, or well not be as effective as managers as we might be.

Finally, there are a lot of barriers to effective communication, such as gender and culture. By
keeping these barriers in mind, we can overcome them and increase our communication effective-
ness.
Key Terms
138
Communication:
Formal channels:
Grapevine:
Blog:
High-Context Cultures:
Summary
139
I. FUNCTIONS OF COMMUNICATION
Communication is more than merely imparting meaning. An idea, no matter how great, is
useless until it is transmitted and understood by others. It must include both the transfer-
ence and the understanding of meaning. There are four major functions of communication:
o Control
> Communication acts to control member behavior in several ways.
o Motivation
> Communication fosters motivation by clarifying to employees what is to be
done, how well they are doing, and what can be done to improve performance.
o Emotional Expression
> Communication provides a release for the emotional expression of feelings and for
fulllment of social needs. For many employees, their work group is a primary
source for social interaction.
o Information
> Communication facilitates decision making. It provides information by transmitting
the data to identify and evaluate alternative choices.
II. THE COMMUNICATION PROCESS
Before communication can take place a purpose expressed as a message to be
conveyed, is needed. (See Exhibit 111)
The communication model is made up of eight parts: the source, encoding, the
message, the channel, decoding, the receiver, noise, and feedback. (See Exhibit
111)
III. DIRECTION OF COMMUNICATION
A. Downward
Communication that ows from one level of a group organization to a lower level is a down-
ward communication.
B. Upward
Upward communication ows to a higher level in the group or organization.
C. Lateral
When communication takes place among members of the same work group, among mem-
bers of work groups at the same level, among managers at the same level, or among any
horizontally equivalent personnel.
IV. INTERPERSONAL COMMUNICATION
A. Oral Communication
Oral communication is the chief means of conveying messages.
Advantages are speed and feedback.
B. Written Communication
Advantages include that they are tangible and veriable. A written record is available for
later use. People are more careful when communication is via written word.
C. Nonverbal Communication
We send a nonverbal message every time we send a verbal one. At times the non-verbal
message may stand alone. They include body movements, facial expressions, and the
physical distance between sender and receiver.

Summary
140
V. ORGANIZATIONAL COMMUNICATION
A. Formal Small-Group Networks
There are three common small-group networks: the chain, wheel, and all-channel.
The effectiveness of each network depends on the dependent variable with which you are
concerned. No single network will be best for all occasions.
B. The Grapevine
A recent survey found that 75 percent of employees hear about matters rst through
rumors on the grapevine.
Management can minimize the negative consequences of rumors by limiting their
range and impact.
C. Computer-Aided Communication
1. E-mail
Growth has been signicant. Common belief is that people are being swamped with
e-mails. Recent study shows that majority of Americans who access e-mail at work receive
10 or fewer e-mails per day.
2. Instant Messaging
IM is now rapidly moving into business; it is essentially real-time e-mail.
Text Messages short messages typically sent to cell phones or other handheld
devices.
3. Networking Software
Linked systems organically spread throughout the nation and world that can be accessed
by a PC.
4. Blogs and Videoconferencing
Blogs are Web sites about a single person or entity that are typically updated daily.
Videoconferencing is an extension of intranet and extranet systems. It uses live audio and
video internet streaming to create virtual meetings. Permits employees in an organization
to have meetings with people at different locations.
5. Summary
Computer-aided communications are reshaping the way we communicate in organizations.
Pagers, cell phones, and personal communicators allow employees to be available for and
instant access to communicating with others.
Organizational boundaries are less relevantemployees can jump vertical levels within the
organization, work from home, or be somewhere other than an organizationally owned facil-
ity.
D. Knowledge Management
Knowledge Management (KM) is a process of organizing and distributing an organizations
collective wisdom so the right information gets to the right people at the right time.
VI. CHOICE OF COMMUNICATION CHANNEL
Recent research has found that channels differ in their capacity to convey information
VII. BARRIERS TO EFFECTIVE COMMUNICATION
A. Filtering
Filter refers to a senders purposely manipulating information so it will be seen as more
favorable by the receiver. For example, telling the boss what she wants to hear.
B. Selective Perception
Receivers in their communication process selectively see and hear based on their needs,
motivations, experience, background, and other personal characteristics.

Summary
141
C. Information Overload
When the information we have to work with exceeds our processing capacity, the result is
information overload.
D. Emotions
How a receiver feels at the time a message is received will inuence how her or she
interprets it. Extreme emotions are likely to hinder effective communication.
E. Language
Words mean different things to different people. Englishour common language is far
from uniform in usage.
F. Communication Apprehension
An estimated ve-to-twenty percent of the population suffer from communication appre-
hension. They experience undue tension or anxiety in oral and/or written communication.
They may nd it difcult to talk with others face to face or on the telephone.
G. Gender Differences
Men tend to talk to emphasize status while women talk to create connections
Research by Deborah Tannin provides important insights into the differences between
men and women
o Men use talk to emphasize status, while women use it to create connection. Not every
man or woman, but A larger percentage of women or men as a group talk in a particu-
lar way, or individual women and men are more likely to talk one way or the other.
Male patterns - Men frequently complain that women talk on and on about their problems.
When men hear a problem, they frequently assert their desire for independence and
control by offering solutions.
Female patterns - Women criticize men for not listening. Many women view telling a prob-
lem as a means to promote closeness. The women present the problem to gain support and
connection, not to get the males advice. Mutual understanding is symmetrical, but giving
advice is asymmetricalit sets the advice giver up as more knowledgeable, more reason-
able, and more in control.
VIII. CURRENT ISSUES IN COMMUNICATION
A. Politically Correct Communication
Our vocabulary has been modied to reect political correctness, and more importantly, to
be sensitive to others feelings. Certain words can and do stereotype, intimidate, and insult
individuals.
Politically correct language is contributing a new barrier to effective communication.
B. Cross-Cultural Communication
1. Cultural Barriers
Barriers caused by semantics.
Barriers caused by word connotations.
Barriers caused by tone differences.
Barriers caused by differences among perceptions.
2. Cultural Context
Cultures tend to differ in the importance to which context inuences meaning.
3. Body Language Issues
4. A Cultural Guide
Summary
142
A. There is a link between communication and employee satisfaction
The less uncertainty the greater the satisfaction
Using all channels (vertical, lateral, informal) increases communication and lessens uncer-
tainty
B. Perfect communication is unattainable
The outcome of communication is meanings that may or may not be what the sender
intended
C. Communication is linked to motivation
Expectancy Theory
D. Using realistic job previews as communication device reduces future turnover

Self Test
143
1) Individuals spend nearly ________ percent of their waking hours communicating.
A) 80
B) 100
C) 60
D) 90
E) 70

2) Which of the following is the most important function of communication in organiza-
tions?
A) information
B) motivation
C) control
D) none of the above
E) All of these factors are important.

3) Which function of communication transmits the data necessary for decision-making?
A) control
B) emotional expression
C) information
D) motivation
E) all of the above

4) The receiver of a communication is most likely to ________ a message.
A) reproduce
B) explain
C) translate
D) discard
E) reect

5) Memos, letters, e-mail, fax transmissions, and organizational periodicals represent
examples of ________.
A) technological communication
B) informal communication channels
C) formal communication channels
D) written communication
Self Test
144
6) Messages conveyed through body movements and facial expressions are ________.
A) physical characteristics
B) body language
C) connotations
D) kinesics
E) semantics

7) What small-group network best serves to promote high member satisfaction?
A) direct
B) wheel
C) circle
D) box
E) all-channel

8) Rumors would most likely ourish in situations where there is ________.
A) well-communicated change
B) a trivial issue at hand
C) a chain communication style
D) assurance by management
E) ambiguity

9) With regard to the grapevine, a manager should try to ________.
A) use it to your advantage
B) ignore it
C) limit its range and impact
D) destroy it
E) all of the above

10) Because cameras and microphones are being attached to individual computers,
people are able to ________ without leaving their desks.
A) use network software
B) text message
C) video conference
D) e-mail
E) instant message
Answer Keys
145
Key Term Denitions
Communication: The transfer and understanding of meaning.
Formal channels: Communication channels established by an organization to transmit message
related to the professional activities of members.
Grapevine: An organizations informal communication network.
Blog: A web site where entries are written, generally displayed in reverse chronological order, about
news, events, and personal diary entries.
High-Context Cultures: Cultures that rely heavily on nonverbal and subtle situational cues in com-
munication.
Answer Keys
146
1) E
2) E
3) C
4) C
5) D
6) B
7) E
8) E
9) C
10) C
Notes
147
Objectives
148
Chapter Number Twelve
Basic Approaches to Leadership
Learning Objectives
1. Dene leadership and contrast leadership and management.
2. Summarize the conclusions of trait theories.
3. Identify the central tenets and main limitations of behavioral
theories.
4. Assess contingency theories of leadership by their level of
support.
5. Contrast the interactive theories path-goal and leadermem-
ber exchange.
6. Identify the situational variables in the leader-participation
model.
7. Show how U.S. managers might need to adjust their leader-
ship approaches in Brazil, France, Egypt, and China.
Key Terms
149
Leadership:
Position Power:
Cognitive Resource Theory:
Situational Leadership Theory (SLT):
Leader:
Summary
150
I. WHAT IS LEADERSHIP?
Denitions
o John Kotter feels that management is about coping with complexity.
o Robert House of Wharton basically concurs: We dene leadership as the ability to
inuence a group toward the achievement of goals.
o Organizations need strong leadership and strong management for optimum effective-
ness. Leaders must challenge the status quo, create visions of the future, and inspire
organizational members.
II. TRAIT THEORIES
Big Five personality traits and leadership
o Extraversion most important
o Conscientiousness and openness to experience
o Agreeableness and emotional stability
Emotional intelligence and leadership
o Empathy
o Highest levels of leadership
o EI and Leadership lack thorough investigation
III. BEHAVIORAL THEORIES
A. Introduction
Behavioral approach assumption: suggests that we could train people to be leaders. We
can design programs to implant behavioral patterns. If training worked, we could have an
innite supply of effective leaders.
B. Ohio State Studies
The most comprehensive and replicated of the behavioral theories resulted from research
that began at Ohio State University in the late 1940s. These researchers sought to identify
independent dimensions of leader behavior.
They narrowed over a thousand dimensions into two dimensionsinitiating structure and
consideration.
C. University of Michigan Studies
Leadership studies were undertaken at the same time as those being done at Ohio State,
with similar research objectives. They discovered two dimensions of leadership behavior
employee-oriented and production-oriented.
D. The Managerial Grid
Blake and Mouton proposed a managerial grid based on the styles of concern for people
and concern for production, which essentially represent the Ohio State dimensions
of consideration and initiating structure or the Michigan dimensions of employee-oriented
and production-oriented.
The grid has nine possible positions along each axis, creating 81 different positions.
E. Summary of Trait Theories and Behavioral Theories
The behavioral theories have had modest success in identifying consistent relationships
between leadership behavior and group performance.
However, situational factors that inuence success or failure need to be explored further.
Summary
151
IV. CONTINGENCY THEORIES
A. Fiedler Model
1. Introduction
The rst comprehensive contingency model for leadership was developed by Fred Fie-
dler who proposed that effective group performance depends upon the proper match
between the leaders style and the degree to which the situation gives control to the leader.
2. Identifying Leadership Style
Fiedler believed that a key factor in leadership success is the individuals basic leadership
style. He created the least preferred coworker (LPC) questionnaire for this purpose.
3. Dening the Situation
Leader-member relationsThe degree of condence, trust, and respect members have in
their leader
Task structureThe degree to which the job assignments are procedural
Position powerThe degree of inuence a leader has over power variables such as hiring,
ring, discipline, promotions, and salary increases
4. Matching Leaders and Situations
Fiedler concluded that task-oriented leaders tend to perform better in situations that were
very favorable to them and in situations that were very unfavorable.
5. Evaluation
There is considerable evidence to support at least substantial parts of the model. If pre-
dictions from the model use only three categories rather than the original eight, there is
ample evidence to support Fiedlers conclusions.
6. Cognitive Resource Theory:
The essence of the new theory is that stress is the enemy of rationality. It is difcult for
leaders to think logically and analytically when they are under stress.
Cognitive resource theory is developing a solid body of research support.
B. Hersey and Blanchards Situational Theory
Paul Hersey and Ken Blanchard developed a leadership model that has gained a strong
following among management development specialists. This modelSituational Leader-
ship Theory (SLT)has been incorporated into leadership training programs at over 400 of
the Fortune 500 companies, and over one million managers a year from a wide variety of
organizations are being taught its basic elements.
Situational leadership is a contingency theory that focuses on the followers.
o Successful leadership is achieved by selecting the right leadership style, which is
contingent on the level of the followers readiness. The term readiness refers to the
extent to which people have the ability and willingness to accomplish a specic task.
Hersey and Blanchard identify four specic leader behaviorsfrom highly directive to
highly laissez-faire. The most effective behavior depends on a followers ability and motiva-
tion.
SLT has an intuitive appeal. Yet, research efforts to test and support the theory have gener-
ally been disappointing.
C. Path-Goal Theory
1. The Theory
One of the most respected approaches to leadership is the path-goal theory developed by
Robert House.
It is the leaders job to assist followers in attaining their goals and to provide the necessary
direction and/or support to ensure that their goals are compatible with the overall objec-
tives of the rm.
Summary
152
2. Leader Behaviors
House identied four leadership behaviors:
o The directive leader lets followers know what is expected of them, etc.
o The supportive leader is friendly and shows concern for the needs of followers.
o The participative leader consults with followers and uses their suggestions before
making a decision.
o The achievement-oriented leader sets challenging goals and expects followers to perform
at their highest level
D. Leader-Member Exchange Theory
The leader-member exchange (LMX) theory argues that because of time pressures, leaders
establish a special relationship with a small group of their followers.
How the leader chooses who falls into each category is unclear.
E. Contingency Variables and Predictions
1. Introduction
In contrast to Fiedler, House assumes leaders are exible and can display any of these
behaviors.
Two classes of situational or contingency variables moderate the leadership behavior:
o Environmental or outcome relationship.
o Personal characteristics of the employee.
2. Evaluation
Research evidence generally supports the logic underlying the path-goal theory.
F. Leader-Participation Model
In 1973, Victor Vroom and Phillip Yetton developed a leader-participation model. Rec-
ognizing that task structures have varying demands for routine and non-routine activities,
these researchers argued that leader behavior must adjust to reect the task structure.
o The model was a decision tree incorporating seven contingencies and ve leadership
styles.
o More recent work by Vroom and Arthur Jago revised this model.
> The twelve contingency variables are listed in Exhibit 125.
> The model is far too complicated for the typical manager to use on a regular basis.
Vroom and his associates have provided us with some specic, empirically-supported con-
tingency variables that you should consider when choosing your leadership style.
A. Leadership is central to understanding group behavior
Leaders provide direction toward goals
B. Traits Theory
Big Five Personality Framework
C. Behavioral Theory
Task-oriented style
People-oriented style
D. Contingency Theory
Situational Factors
o Task structure
o Stress
o Support
o Leader intelligence
Self Test
153
1) Recent studies indicate that ________ may indicate effective leadership.
A) emotional intelligence
B) a compelling vision
C) outstanding training
D) a highly analytical mind
E) an endless supply of terric ideas

2) Which of the following is not a behavioral theory of leadership?
A) University of Michigan studies
B) managerial grid
C) Ohio State studies
D) Fiedler model
E) All of the above are behavior theories of leadership.

3) Three situational criteria identied in the Fiedler model are ________.
A) leader-member relations, task structure, and position power
B) job requirements, position power, and leadership ability
C) emotional intelligence, group orientation, and employee status
D) task structure, leadership ability, and group conict
E) charisma, inuence, and leader-member relations

4) What theory was developed by Robert House?
A) cognitive resource model
B) leader-member exchange theory
C) path-goal theory
D) decision theory
E) situational leadership theory

5) What is the essence of the path-goal theory?
A) Stress is a form of situational unfavorableness and a leaders reaction to it depends
on his or her intelligence and experience.
B) The leader is responsible for providing followers with the information, support, or
other resources necessary for them to do their jobs.
C) Successful leadership is achieved by selecting the right leadership style.
D) Leaders establish a special relationship with a small group of their followers because
of time pressures.
E) Effective group performance depends on the proper match between the leaders style
and the degree to which the situation gives control to the leader.
Self Test
154
6) The leader-participation model was developed by ________.
A) Hersey and Blanchard
B) Vroom and Yetton
C) Douglas and Surber
D) Fred Fiedler
E) Blake and Mouton

Your companys HR director is a believer in trait theories of leadership. He believes that
he can differentiate leaders from non-leaders by focusing on personal qualities and
characteristics. The HR director plans to promote Lawrence, a highly extroverted manager
with a great deal of ambition and energy. Furthermore, the president of the company is
preparing to retire, and the HR director is searching for her replacement. He asks for your
expertise in helping him to apply trait theory to leadership selection within your company.

7) You advise the director to prioritize which of the following when looking for appropri-
ate candidates for the presidents replacement?
A) goal-orientation
B) emotional stability
C) training
D) emotional intelligence
E) analytical capacity

You have decided to use Fiedlers LPC questionnaire to help your employees learn more
about their leadership styles. Each of your employees has lled out and scored the instru-
ment. It is your job to try to explain to them how to use the survey information.

8) In utilizing Fiedlers contingency model, which of the following contingency dimen-
sions should your employees pay attention to?
A) task structure
B) position power
C) leader-member relations
D) All of the above are important dimensions in this model.
E) None of the above are important dimensions in this model.

Your boss has been reading several books on leadership. You notice that every few months
he is spouting a different approach and philosophy. You have been trying to keep up with
him and gure out which leadership theory of the month he is studying.

9) Suddenly your boss begins sending people to training to help them develop more ef-
fective leadership styles. It is clear that he is reading an author who supports
________.
A) trait theories
B) behavioral theories
Self Test
155
C) the reection effect
D) Fiedlers contingency model

As you have observed your department manager and her interactions with the depart-
ments employees, you have come to believe in LMX theory. Sarah and Joe get less of the
managers time. Sally gets fewer of the preferred rewards that the manager controls and
John has a relationship with the manager based on formal authority interactions. Rebecca
is trusted. Jennifer gets a disproportionate amount of the managers attention and is more
likely to receive special privileges.

10) When you look at this departments performance evaluations, you expect to nd that
________.
A) Rebecca, John, and Jennifer have high ratings
B) John has received more promotions than any of the other employees
C) Rebecca and John compete with each other for the highest ratings
D) Rebecca and Jennifer have high ratings
E) Rebecca and Jennifer have high ratings, John has moderate ratings, and the rest of
the employees have low ratings
Answer Keys
156
Key Term Denitions
Leadership: The ability to inuence a group toward the achievement of a vision or set of goals.
Position Power: Inuence derived from ones formal structural position in the organization; include
power to hire, re, discipline, promote, and give salary increases.
Cognitive Resource Theory: A theory of leadership that states that stress unfavorably affect a situa-
tion and that intelligence and experience can reduce the inuence of stress on the leader.
Situational Leadership Theory (SLT): A contingency theory that focuses on followers readiness.
Leader-Participation Model: A leadership theory that provides a set of rules to determine the form
and amount of participative decision making in different situations.
Answer Keys
157
1) A
2) D
3) A
4) C
5) B
6) B
7) D
8) D
9) B
10) D
Notes
158
Unit 3 Examination
Instructions
159
grading system:
B = 80% 89% correct
C = 70% 79% correct
D = 60% 69% correct
4 grade points
3 grade points
2 grade points
1 grade point
0 grade points
Completing Unit Three Examination
Unit 3 Examination
160
1) Groups based on support for a given sports team are examples of what sort of group?
A) booster
B) miscreant
C) interest
D) friendship
E) sports

2) What are the ve stages of group development?
A) generation, implementation, construction, production, termination
B) forming, storming, norming, performing, adjourning
C) introduction, development, production, deterioration, adjournment
D) acting, reacting, enacting, impacting, acting
E) initiation, evolution, maturation, degeneration, termination

3) What term is used for a set of expected behavior patterns associated with a particular
position in a social unit?
A) identity
B) role expectation
C) role
D) role identity
E) role perception

4) Which of the following was the major nding of Zimbardos simulated prison experi-
ment?
A) Group cohesiveness is so important that individuals will restrain their natural impuls-
es in order to remain part of the group.
B) Status differences between groups will always result in conict between those groups.
C) When given the opportunity, people will tend to act in an oppressive manner to those
around them.
D) Individuals can rapidly assimilate new roles very different from their inherent person-
alities.
E) An individuals emotions and the behavioral responses to those emotions are congru-
ent.

5) Which of the following statements about status is not true?
A) High status members are better able to resist conformity pressures than lower status
members.
B) Status is an important motivator.
C) Low status members are given more freedom to deviate from norms than are other
members.
Unit 3 Examination
161
D) Possession of personal characteristics that are positively valued by the group will give
a member higher status.
E) Conformity is affected by status.
6) What term is used for the tendency for individuals to spend less effort when working
collectively?
A) the rule of diminishing returns
B) groupshift
C) social loang
D) groupthink
E) clustering

7) What sort of group should you avoid if you want to minimize interpersonal conict?
A) electronic
B) brainstorming
C) nominal
D) social
E) interacting

8) Which type of decision-making group is most committed to the group solution?
A) brainstorming
B) social
C) electronic
D) interacting
E) nominal

Astro Inc. is reorganizing and your new work group begins working together on Monday
morning. Your college course in organizational behavior contained information about the
stages of group development and your supervisor has asked your advice about the predict-
able stages of group development.

9) You should tell your supervisor that in the rst stage of group development, the team
members will probably be ________.
A) in conict
B) focused on the task at hand
C) uncertain
D) condent
E) excited
Unit 3 Examination
162
10) Which of the following statements best denes a work group?
A) A work group consists of 3 or more people from across departmental or functional
lines.
B) The performance of a work group is generally greater than the sum of its inputs from
individual members.
C) A work group interacts primarily to share information, rather than to engage in work
that requires joint effort.
D) A work group consists of 3 or more people who take on self-supervising responsibili-
ties.
E) A work group is a group comprised of 10 or more people.

11) Which type of team meets to discuss ways to improve quality, efciency, and the work
environment?
A) cross-functional
B) virtual
C) self-managed
D) committee
E) problem-solving

12) ________ teams are made up of employees from about the same hierarchical level.
A) Problem-solving
B) Self-managed
C) Multifaceted
D) Cross-functional
E) Star matrix

13) The early stages of development of a cross-functional team are time-consuming be-
cause ________.
A) members have to learn how to perform new functional tasks
B) members must research the causes of problems which they are assigned to solve
C) most cross-functional team members have already established trust
D) most cross-functional team members are comprised of individuals from similar back-
grounds
E) members must learn to work with diversity and complexity

14) Team members with good listening, feedback, and conict resolution skills possess
________.
A) decision-making skills
B) interpersonal skills
C) problem-solving skills
D) cognitive appraisal skills
E) technical expertise

Unit 3 Examination
163
15) Which of the following is not one of the nine potential team roles identied for suc-
cessful teams?
A) controller
B) promoter
C) maintainer
D) organizer
E) allocator
16) Formal guidelines and authority hierarchies are examples of which function of com-
munication?
A) information
B) agreement
C) organization
D) control
E) all of the above

17) Memos, letters, e-mail, fax transmissions, and organizational periodicals represent
examples of ________.
A) written communication
B) formal communication channels
C) technological communication
D) informal communication channels

18) Which of the following statements is not a characteristic of nonverbal communica-
tion?
A) It includes intonation.
B) It can be argued that every body movement has meaning.
C) Its signicance is unproven in explaining and predicting behavior.
D) It can convey meaningful information.
E) We rarely send these types of messages consciously.

19) What small-group network is most effective for facilitating the emergence of a leader?
A) box
B) wheel
C) all-channel
D) chain
E) direct

Unit 3 Examination
164
20) With regard to the grapevine, a manager should try to ________.
A) destroy it
B) ignore it
C) limit its range and impact
D) use it to your advantage
E) all of the above

21) Recent studies indicate that ________ may indicate effective leadership.
A) outstanding training
B) a compelling vision
C) a highly analytical mind
D) an endless supply of terric ideas
E) emotional intelligence

22) A leader high in initiating structure would do which of the following?
A) seek consensus
B) empower employees to make their own decisions
C) maximize leader-member relations
D) assign group members to particular tasks
E) exhibit laissez-faire type of leadership

23) According to the Ohio State studies, the extent to which a leader is likely to have job
relationships characterized by mutual trust and respect for his/her employees is
________.
A) LPC
B) consideration
C) matrix
D) maximization
E) consensus-building

24) All of the following are ndings of the cognitive resource theory except ________.
A) low stress situations show a positive relationship between intellectual abilities and
performance
B) high stress situations show a negative relationship between intellectual abilities and
performance
C) low stress situations show a positive relationship between job experience and perfor-
mance
D) high stress situations show a positive relationship between job experience and perfor-
mance
E) None of the above are ndings of the theory.
Unit 3 Examination
165
25) You are the CEO of an engineering design rm that has several departments, each
specializing in the design of different products. You have noticed a great deal of dif-
ference between the styles of the various department directors. You also see a big
difference in the morale, employee satisfaction levels, and effectiveness (productivity)
levels of the departments. One of your goals as CEO is to maximize productivity
across all departments.

It can be inferred that the poorest performing director is most likely to receive which of
the following scores on the managerial grid?
A) 9,9
B) 9,1
C) 5,5
D) 1,9
E) 1,1
Unit 3 Examination
166
Written Assignment for Unit Three

Plagiarism
1) Discuss strengths and weaknesses of group decision making.

2) Describe and discuss specic problems related to cross-cultural communication.
Include cultural barriers and cultural context.

3) Compare and contrast Hersey and Blanchards situational leadership theory with
Houses path-goal theory.
You Can Do It
167
Unit 3 is done!
Youre close to the nish line
and were cheering you on to victory!
Objectives
168
Chapter Number Thirteen
Contemporary Issues in Leadership
Learning Objectives
1. Show how framing inuences leadership effectiveness.
2. Dene charismatic leadership and show how it inuences
followers.
3. Contrast transformational leadership and transactional lead-
ership and discuss how transformational leadership works.
4. Dene authentic leadership and show why ethics and trust
are vital to effective leadership.
5. Identify the three types of trust.
6. Demonstrate the importance of mentoring, self-leadership,
and virtual leadership to our understanding of leadership.
7. Identify when leadership may not be necessary.
Overview
169
Organizations are increasingly searching for managers who can exhibit transformational leadership
qualities. They want leaders with vision and the charisma to carry out their vision. And although
true leadership effectiveness may be a result of exhibiting the right behaviors at the right time, the
evidence is quite strong that people have a relatively uniform perception of what a leader should
look like. They attribute leadership to people who are smart, personable, verbally adept, and the
like. To the degree that managers project these qualities, others are likely to deem them leaders.
There is increasing evidence that the effectiveness of charismatic and transformational leadership
crosses cultural boundaries.
Effective managers today must develop trusting relationships with those they seek to lead
because as organizations have become less stable and predictable, strong bonds of trust are likely
to be replacing bureaucratic rules in dening expectations and relationships. Managers who arent
trusted arent likely to be effective leaders.
For managers concerned with how to ll key positions in their organization with effective
leaders, we have shown that tests and interviews help to identify people with leadership qualities.
In addition to focusing on leadership selection, managers should also consider investing in leader-
ship training. Many individuals with leadership potential can enhance their skills through formal
courses, workshops, rotating job responsibilities, coaching, and mentoring.
Key Terms
170
Charismatic leadership theory:
Vision:
Vision Statement:
Mentor:
Summary
171
I. INSPIRATIONAL APPROACHES TO LEADERSHIP
A. Introduction
Framing Issues
o Framing is a way to use language to manage meaning. It is a way for leaders to inu-
ence how events are seen and understood.
B. Charismatic Leadership
1. What Is Charismatic Leadership?
Charismatic Leadership Theory
2. Are Charismatic Leaders Born or Made?
Individuals are born with traits that make them charismatic
Most experts believe individuals can be trained to exhibit charismatic behavior
3. How Charismatic Leaders Inuence Followers
Appealing vision
Vision statement
High performance expectations
A new set of values
4. Does Effective Charismatic Leadership Depend on the Situation?
A strong correlation between charismatic leadership and high performance and satisfaction
among followers
5. The Dark Side of Charismatic Leadership
Use their charisma to shape company in their own image
Level 5 leaders
C. Transformational Leadership
1. Introduction
Transformational leaders inspire followers to transcend their own self-interests for the good
of the organization.
They change followers awareness of issues by helping them to look at old problems in new
ways; and they are able to excite, arouse, and inspire followers to put out extra effort to
achieve group goals.
Transformational leadership is built on top of transactional leadershipit produces levels
of follower effort and performance that go beyond what would occur with a transactional
approach alone.
2. Full Range of Leadership Model
Laissez-Faire is most passive and least effective.
o Management by exception, slightly better
o Contingent reward leadership can be effective
o Individualized consideration
o Intellectual stimulation
o Inspirational motivation
o Idealized inuence
3. How Transformational Leadership Works
Encourage followers to be more innovative and creative
Followers are likely to pursue ambitious goals
Vision is also important
Summary
172
4. Evaluation of Transformational Leadership
Evidence supports superiority of transformational leadership over transactional leadership
Transformational leadership theory is not perfect
Transformational leadership is correlated with lower turnover, higher productivity, and
higher satisfaction
5. Transformational Leadership Versus Charismatic Leadership
Measures of charisma and transformational leadership may be roughly equivalent
II. AUTHENTIC LEADERSHIP: ETHICS AND TRUST ARE THE FOUNDATION OF LEADERSHIP
A. What Is Authentic Leadership?
Recent concept; not much research
Focuses on the moral aspect of leadership
B. Ethics and Leadership
Received little attention
Means and goals
Leadership is not value free
C. What Is Trust?
Trust is a positive expectation that another will notthrough words, actions, or deci-
sionsact opportunistically.
Five Key dimensions that underlie the concept of trust
o Integrity
o Competence
o Consistency
o Loyalty
o Openness
D. Trust and Leadership
Trust is a primary attribute associated with leadership. When trust is broken, it can have
serious adverse effects on a groups performance.
Honesty consistently ranks at the top of most peoples list of characteristics they admire in
their leaders.
E. Three Types of Trust
1. Deterrence-Based Trust
The most fragile relationships are contained in deterrence-based trust. One violation or
inconsistency can destroy the relationship.
2. Knowledge-Based Trust
Most organizational relationships are rooted in knowledge-based trust. It exists when you
have adequate information about someone to understand them well enough to be able to
accurately predict their behavior.
3. Identication-Based Trust
The highest level of trust is achieved when there is an emotional connection between the
parties. This is called identication-based trust.
F. Basic Principles of Trust (PPTs 1315)
Principles for understanding trust and mistrust
o Mistrust drives out trust.
o Trust begets trust.
o Growth often masks mistrust.
o Decline or downsizing tests the highest levels of trust.
o Trust increases cohesion.
o Mistrusting groups self-destruct.
o Mistrust generally reduces productivity.
Summary
173
G. Is Trust in Our Leaders in Decline?
Reengineering, downsizing, and the increased use of temporary employees have under-
mined a lot of employees trust in management.
III. CONTEMPORARY LEADERSHIP ROLES
A. Mentoring
A mentor is a senior employee who sponsors and supports a less-experienced employee (a
protg). The mentoring role includes coaching, counseling, and sponsorship.
Some organizations have formal mentoring programs where mentors are ofcially assigned
to new or high-potential employees, however, most organizations rely on informal men-
toringwith senior managers personally selecting an employee and taking that employee
on as a protg.
B. Self-Leadership
Proponents of self-leadership say that there are a set of processes through which individu-
als control their own behavior. How do leaders create self-leaders? The following ideas
have been suggested:
o Model self-leadership.
o Encourage employees to create self-set goals.
o Encourage the use of self-rewards to strengthen and increase desirable behaviors.
o Create positive thought patterns.
o Create a climate of self-leadership.
o Encourage self-criticism.
C. Online Leadership
Leadership research has been directed almost exclusively to face-to-face and verbal situ-
ations. The reality is that todays managers and their employees are increasingly being
linked by networks rather than geographical proximity.
Some suggested guidelines for the on-line leader:
o In face-to-face communications, harsh words can be softened by nonverbal action such
as a smile and comforting gestures. That nonverbal component does not exist with
online interactions.
o The structure of words in a digital communication also has the power to motivate or
demotivate the receiver. If the message is made up of full sentences it is perceived as
less threatening than just phrases.
Some managers whose face-to-face leadership skills are less than satisfactory may shine
online. Their talents may lie in their writing skills and ability to read the messages behind
written communiqus.
IV. CHALLENGES TO THE LEADERSHIP CONSTRUCT
A. Introduction
Much of an organizations success or failure is due to factors outside the inuence of lead-
ership. In many cases, success or failure is just a matter of being in the right or wrong
place at a given time.
B. Leadership as an Attribution
The attribution framework has shown that people characterize leaders as having such
traits as intelligence, outgoing personality, strong verbal skills, aggressiveness, understand-
ing, and industriousness.
The attribution framework accounts for the conditions under which people use leader-
ship to explain organizational outcomes. When an organization has either extremely nega-
tive or extremely positive performance, people are prone to make leadership attributions to
explain the performance.
Summary
174
C. Substitutes and Neutralizers to Leadership
Contrary to the arguments, leadership may not always be important. Data from numerous
studies collectively demonstrate that, in many situations, whatever actions leaders exhibit
are irrelevant.
Certain individual, job, and organizational variables can act as substitutes for leadership or
neutralize the leaders effect to inuence his or her followers.
Neutralizers make it impossible for leader behavior to make any difference to follower out-
comes. They negate the leaders inuence.
Substitutes make a leaders inuence not only impossible but also unnecessary. They act
as a replacement.
V. FINDING AND CREATING EFFECTIVE LEADERS
A. Selection
The entire process that organizations go through to ll management positions is essentially
an exercise in trying to identify individuals who will be effective leaders.
Items of consideration during selection include:
o Reviewing the specic requirements for the position.
o Analyze the situation to ensure a proper match.
o Testing is useful for identifying and selecting leaders.
o Assess candidates for emotional intelligence.
o Interviews provide an opportunity to evaluate leadership candidates.
B. Training
Billions are spent on leadership training and development every year.
A. Transformational leadership qualities are important
B. People attribute leadership to those who are
o Smart
o Personable
o Verbally adept
C. Managers must build trusting relationships with their followers
D. Selecting people with leadership qualities is important
E. Leadership training can enhance managers leadership skills
Self Test
175
1) Which of the following is not a characteristic of charismatic leaders?
A) They have a vision and the ability to articulate the vision.
B) They are willing to take high personal risk.
C) They exhibit behaviors that are consistent with their followers behaviors.
D) They have behavior that is unconventional.
E) All of the above are true.

2) What is a characteristic of a vision?
A) It is a strategy for how to run a business.
B) It is short or long-term.
C) It links the present with a better future.
D) It is a formal articulation of a mission.
E) It imprints on followers an over-arching goal.

3) When is a vision likely to fail?
A) if the vision is challenging
B) if the vision has powerful imagery
C) if the vision reects the uniqueness of the organization
D) if the vision is for the future of the organization and its members
E) if the vision is seen as unattainable

4) Leaders who have individual capability, team skills, managerial competence, the abil-
ity to stimulate others to high performance, and a blend of personal humility and
professional will are called ________.
A) super-leaders
B) transformational leaders
C) great leaders
D) level-5 leaders
E) transactional leaders

5) According to the text, the two dominant contemporary theories of leadership focus
predominantly on ________.
A) transformational and transactional leaders
B) acting and reacting leaders
C) mentoring and self-leaders
D) compelling and transformational leaders
E) charismatic and transcendent leaders
Self Test
176
6) What is a characteristic of a transactional leader?
A) intellectual stimulation
B) inspirational motivation
C) management by exception
D) individualized consideration
E) idealized inuence

7) In the modern work world, where higher-level trust has been largely destroyed be-
cause of broken promises, it is likely to be replaced with ________ trust.
A) identity-based
B) knowledge-based
C) reliance-based
D) dependence-based
E) virtue-based

8) According to the attribution theory of leadership, the key to being characterized as
an effective leader is projecting the ________ of being a leader rather than focusing
on ________.
A) facade; reality
B) attributes; substance
C) image; overcoming challenges
D) look; events
E) appearance; actual accomplishments

9) According to the text, which of the following skills should be included in leadership
training?
A) trust building
B) vision creation
C) situational analysis
D) all of the above

You are an employee in a large organization. In this organization, there are two senior
managers. The rst of these mangers, John, prides himself on his ability to help his sub-
ordinates understand their roles in achieving company goals. He denes clear-cut steps
for his subordinates to use in completing projects, and rewards them for using proven
strategies. The second manager, Alan, feels that his role should be to provide individual-
ized consideration and intellectual stimulation. His approach encourages creative problem
solving and the development of new ideas. Most of the workers believe that both leaders
are well trained, but Alans employees remark that Alan seems to have a special leader-
ship quality that sets him apart from the other managers.

Self Test
177
10) That special leadership quality that people notice when they work with Alan may be
termed ________.
A) trust
B) charisma
C) transaction
D) framing
E) transformation
Answer Keys
178
Key Term Denitions
Charismatic leadership theory: A leadership theory that states that followers make attributions of
heroic or extraordinary leadership abilities when they observe certain behaviors.
Vision: A long-term strategy for attaining a goal or goals.
Vision Statement: A formal articulation of an organizations vision or mission.
Trust: A positive expectation that another will not act opportunistically.
Mentor: A senior employee who sponsors and supports a less-experienced employee, called a pro-
tg.
Answer Keys
179
1) C
2) C
3) E
4) D
5) A
6) C
7) B
8) E
9) D
10) B
Notes
180
Objectives
181
Chapter Number Fourteen
Power and Politics
Learning Objectives
1. Dene power and contrast leadership and power.
2. Contrast the ve bases of power.
3. Identify nine power or inuence tactics and their contingen-
cies.
4. Show the connection between sexual harassment and the
abuse of power.
5. Distinguish between legitimate and illegitimate political
behavior.
6. Identify the causes and consequences of political behavior.
7. Apply impression management techniques.
8. Determine whether a political action is ethical.
9. Show the inuence of culture on the uses and perceptions
of politics.
Overview
182
If you want to get things done in a group or an organization, it helps to have power. As a manager
who wants to maximize your power, you will want to increase others dependence on you. You can,
for instance, increase your power in relation to your boss by developing knowledge or a skill that
she needs and for which she perceives no ready substitute. But power is a two-way street. You will
not be alone in attempting to build your power bases. Others, particularly employees and peers,
will be seeking to make you dependent on them. The result is a continual battle. While you seek to
maximize others dependence on you, you will be seeking to minimize your dependence on others.
And, of course, others you work with will be trying to do the same.
Few employees relish being powerless in their job and organization. Its been argued, for in-
stance, that when people in organizations are difcult, argumentative, and temperamental, it may
be because they are in positions of powerlessness; positions in which the performance expectations
placed on them exceed their resources and capabilities.
There is evidence that people respond differently to the various power bases. Expert and refer-
ent power are derived from an individuals personal qualities. In contrast, coercion, reward, and
legitimate power are essentially organizationally derived. Because people are more likely to enthu-
siastically accept and commit to an individual whom they admire or whose knowledge they respect
(rather than someone who relies on his or her position for inuence), the effective use of expert
and referent power should lead to higher employee motivation, performance, commitment, and sat-
isfaction. Competence especially appears to offer wide appeal, and its use as a power base results
in high performance by group members. The message for managers seems to be Develop and use
your expert power base!
The power of your boss may also play a role in determining your job satisfaction. One of the
reasons many of us like to work for and with people who are powerful is that they are generally
more pleasantnot because it is their native disposition, but because the reputation and reality of
being powerful permits them more discretion and more ability to delegate to others.
An effective manager accepts the political nature of organizations. By assessing behavior in a
political framework, you can better predict the actions of others and use that information to formu-
late political strategies that will gain advantages for you and your work unit.
Some people are signicantly more politically astute than others, meaning that they are
aware of the underlying politics and can manage impressions. Those who are good at playing poli-
tics can be expected to get higher performance evaluations and, hence, larger salary increases and
more promotions than the politically naive or inept. The politically astute are also likely to exhibit
higher job satisfaction and be better able to neutralize job stressors. For employees with poor po-
litical skills or who are unwilling to play the politics game, the perception of organizational politics
is generally related to lower job satisfaction and self-reported performance, increased anxiety, and
higher turnover.
Key Terms
183
Power:
Dependency:

Political Skill:

Sexual Harassment:
Defensive Behaviors:
Summary
184
I. A DEFINITION OF POWER
A. Introduction
Denition: Power refers to a capacity that A has to inuence the behavior of B, so that B
acts in accordance with As wishes.
Probably the most important aspect of power is that it is a function of dependency.
II. CONTRASTING LEADERSHIP AND POWER
Leaders use power as a means of attaining group goals. Leaders achieve goals, and power
is a means of facilitating their achievement.
Differences between Leadership and Power:
o Goal compatibility
o The direction of inuence
III. BASES OF POWER
A. Formal Power
1. Coercive Power
The coercive power base is being dependent on fear.
2. Reward Power
People comply because doing so produces positive benets; therefore, one who can distrib-
ute rewards that others view as valuable will have power over those others.
3. Legitimate Power
In formal groups and organizations, the most frequent access power is ones structural po-
sition. It represents the power a person receives as a result of his/her position in the formal
hierarchy.
Positions of authority include coercive and reward powers.
B. Personal Power
1. Expert Power
Expert power is inuence wielded as a result of expertise, special skill, or knowledge.
2. Referent Power
Its base is identication with a person who has desirable resources or personal traits. If I
admire and identify with you, you can exercise power over me because I want to please
you.
C. Which Bases of Power Are Most Effective?
Personal sources are most effective
Coercive power usually backres
IV. DEPENDENCY: THE KEY TO POWER
A. The General Dependency Postulate
The greater Bs dependency on A, the greater the power A has over B.
When you possess anything that others require but that you alone control, you make them
dependent upon you and, therefore, you gain power over them.
B. What Creates Dependency?
1. Importance
To create dependency, the thing(s) you control must be perceived as being important.
2. Scarcity
A resource needs to be perceived as scarce to create dependency.
3. Nonsubstitutability
The more that a resource has no viable substitutes, the more power that control over that
resource provides.
Summary
185
V. POWER TACTICS
A. Introduction
Using power tactics to translate power into action
o Research has identied nine distinct inuence tactics:)
> Legitimacy
> Rational persuasion
> Inspirational appeals
> Consultation
> Exchange
> Personal appeals
> Ingratiation
> Pressure
> Coalitions
o People in different countries tend to prefer different power tactics.
o The organizations culture
> The organizational culture in which a manager works, therefore, will have a signi-
cant bearing on dening which tactics are considered appropriate.
.
VI. SEXUAL HARASSMENT: UNEQUAL POWER IN THE WORKPLACE
Importance
o A Kentucky jury awarded $2 million to a Philip Morris plant supervisor after suffering
through more than a year of sexual harassment from the men she supervised.
Sexual Harassment Dened
o Any unwanted activity of a sexual nature that affects an individuals employment.
o The U.S. Supreme Court claried the denition by adding that the key test for deter-
mining if sexual harassment has occurred is whether comments or behavior in a work
environment would reasonably be perceived, and is perceived, as hostile or abusive.
o There continues to be disagreement as to what specically constitutes sexual harass-
ment:
> Most studies conrm that the concept of power is central to understanding sexual
harassment.
VII. POLITICS: POWER IN ACTION
A. Introduction
Denition: Those activities that are not required as part of ones formal role in the orga-
nization, but that inuence, or attempt to inuence, the distribution of advantages and
disadvantages within the organization.
The Legitimate-Illegitimate Dimension
o The vast majority of all organizational political actions are legitimate. The extreme
illegitimate forms of political behavior pose a very real risk of loss of organizational
membership or extreme sanction.
B. The Reality of Politics
Politics is a fact of life in organizations.
Organizations are made up of individuals and groups with different values, goals, and
interests. This sets up the potential for conict over resources.
Resources in organizations are also limited, which often turns potential conict into real
conict. Because resources are limited, not everyones interests can be provided for caus-
ing the conict.
C. Factors Contributing to Political Behavior
Individual Factors
Summary
186
o Researchers have identied certain personality traits, needs, and other factors that are
likely to be related to political behavior.
o An individuals investment in the organization, perceived alternatives, and expectations
of success will inuence the tendency to pursue illegitimate means of political action.
Organizational Factors
o Political activity is probably more a function of the organizations characteristics than of
individual difference variables.
o When an organizations resources are declining, when the existing pattern of resources
is changing, and when there is opportunity for promotions, politics is more likely to
surface.
o Cultures characterized by low trust, role ambiguity, unclear performance evaluation
systems, zero-sum reward allocation practices, democratic decision making, high pres-
sures for performance, and self-serving senior managers will create breeding grounds for
politicking.
D. How Do People Respond to Organizational Politics?
There is very strong evidence indicating that perceptions of organizational politics are
negatively related to job satisfaction.
The perception of politics leads to anxiety or stress. When it gets too much to handle,
employees quit.
It is a demotivating force and performance may suffer as a result.
The effect of politics is moderated by the knowledge the individual has of the decision-
making system and his/her political skills:
o Reaction to organizational politics is also moderated by culture. In countries that are
more unstable politically, workers will tolerate higher levels of politicking than more
politically stable countries.
E. Impression Management
The process by which individuals attempt to control the impression others form of them
Who engages in IMthe high self-monitor
IM does not imply that the impressions people convey are necessarily false.
Misrepresentation can have a high cost. If the image claimed is false, you may be discred-
ited.
Situations that are characterized by high uncertainty or ambiguity that provide relatively
little information for challenging a fraudulent claim increase the likelihood of individuals
misrepresenting themselves.
F. The Ethics of Behaving Politically
Three ethical decision criteria are utilitarianism, rights, and justice.
Unfortunately, the answers to these questions are often argued in ways to make unethical
practices seem ethical. Powerful people can become very good at explaining self-serving
behaviors. They can persuasively argue that unfair actions are really fair and just.
VIII. SUMMARY AND IMPLICATIONS FOR MANAGERS
A. Power
Managers gain power by increasing followers dependence
B. Sources of power
Expert
Referent
Coercion
Reward
Legitimate
C. Expert and Referent lead to higher employee motivation, commitment, and satisfaction
D. Organizational Politics
Managers good at politics get higher performance ratings
Politically astute employees have higher job satisfaction and lower stress
Self Test
187
1) Which one of the following is not implied in the denition of power?
A) potential
B) dependency
C) actualization
D) capacity
E) inuence

2) The most important aspect of power is probably that it ________.
A) is counterproductive
B) involves control
C) a function of dependency
D) tends to corrupt people
E) is needed to get things done in an organization

3) Leadership requires ________.
A) some congruence between the goals of the leader and those being led
B) a dependency of the leader on those being led
C) a dependency of those being led on the leader
D) followers to share behavioral traits with their leaders
E) strong two-way communication between the leader and those being led

4) When your superior offers you a raise if you will perform additional work beyond the
requirements of your job, he/she is exercising ________ power.
A) personal
B) reective
C) coercive
D) legitimate
E) reward

5) Dependency is decreased when the resource you control is ________.
A) insufcient
B) scarce
C) easily replaced
D) important
E) static
6) Joe comes to you with a request for funds for a project. He reminds you that company
policy supports his position. He is using the tactic of ________.
A) coalitions
B) legitimacy
Self Test
188
C) consultation
D) rational persuasion
E) pressure

7) ________ occurs when people within organizations use whatever inuence they can to
taint the facts to support their goals and interests.
A) Illegitimate political behavior
B) Camouage
C) Sabotage
D) Politicking
E) Legitimate political behavior

8) Some individuals promote their image by describing others with whom they are asso-
ciated in a positive light. These individuals are using the impression management
technique of ________.
A) self-promotion
B) attribution denial
C) conformity
D) association
E) attery

Jerrod is relatively new to Xenon Corporation and wants to make sure that he makes a
good impression on his coworkers and supervisor. He agrees with the supervisors opinion
most of the time and is always doing nice things for him. Jerrod makes sure that he as-
sociates with the right people and is constantly complimenting others about their good
work.

9) Jerrod is engaging in all of the following impression management techniques except
________.
A) mirroring
B) conformity
C) attery
D) association
E) Jerrod is engaging in all of the above impression management techniques.

10) Jerrod is engaging in which of the following impression management techniques?
A) mirroring
B) acclaiming
C) conformity
D) apologizing
E) groveling
Answer Keys
189
Key Term Denitions
Power: A capacity that A has to inuence the behavior of B so that B acts in accordance with As
wishes.
Dependency: Bs relationship to A when A possesses something that B requires.
Political Skill: The ability to inuence others in such a way as to enhance ones objectives.
Sexual Harassment: Any unwanted activity of a sexual nature that affects an individuals employ-
ment and creates a hostile work environment.
Defensive Behaviors: Reactive and protective behaviors to avoid action, blame or change.
Answer Keys
190
1) C
2) C
3) A
4) E
5) C
6) B
7) D
8) D
9) A
10) C
Notes
191
Objectives
192
Chapter Number Fifteen
Conict and Negotiation
Learning Objectives
1. Dene conict.
2. Differentiate between the traditional, human relations, and
interactionist views of conict.
3. Outline the conict process.
4. Dene negotiation.
5. Contrast distributive and integrative bargaining.
6. Apply the ve steps of the negotiation process.
7. Show how individual differences inuence negotiations.
8. Assess the roles and functions of third-party negotiations.
9. Describe cultural differences in negotiations.
Overview
193
Many people automatically assume that conict is related to lower group and organizational perfor-
mance. This chapter has demonstrated that this assumption is frequently incorrect. Conict can be
either constructive or destructive to the functioning of a group or unit. Either extreme hinders per-
formance. An optimal level is one at which there is enough conict to prevent stagnation, stimulate
creativity, allow tensions to be released, and initiate the seeds for change, yet not so much as to be
disruptive or to deter coordination of activities.
What advice can we give managers faced with excessive conict and the need to reduce it?
Dont assume that one conict-handling intention will always be best! You should select an inten-
tion appropriate for the situation. The following are some guidelines:
Use competition when quick, decisive action is vital (in emergencies), on important issues,
where unpopular actions need to be implemented (in cost cutting, enforcing unpopular
rules, discipline), on issues vital to the organizations welfare when you know youre rights
and against people who take advantage of noncompetitive behavior.
Use collaboration to nd an integrative solution when both sets of concerns are too impor-
tant to be compromised, when your objective is to learn, to merge insights from people
with different perspectives, to gain commitment by incorporating concerns into a consen-
sus, and to work through feelings that have interfered with a relationship.
Use avoidance when an issue is trivial or when more important issues are pressing, when
you perceive no chance of satisfying your concerns, when potential disruption outweighs
the benets of resolution, to let people cool down and regain perspective, when gathering
information supersedes immediate decision, when others can resolve the conict more ef-
fectively, and when issues seem tangential or symptomatic of other issues.
Use accommodation when you nd that youre wrong and to allow a better position to be
heard, to learn, and to show your reasonableness; when issues are more important to oth-
ers than to yourself and to satisfy others and maintain cooperation; to build social credits
for later issues; to minimize loss when you are out matched and losing; when harmony and
stability are especially important; and to allow employees to develop by learning from
mistakes.
Use compromise when goals are important but not worth the effort of potential disruption
of more assertive approaches; when opponents with equal power are committed to mutu-
ally exclusive goals; to achieve temporary settlements to complex issues; to arrive at expe-
dient solutions under time pressure; and as a backup when collaboration or competition is
unsuccessful.
Negotiation is an ongoing activity in groups and organizations. Distributive bargaining can
resolve disputes, but it often negatively affects the satisfaction of one or more negotiators because
it is focused on the short term and because it is confrontational. Integrative bargaining, in con-
trast, tends to provide outcomes that satisfy all parties and that build lasting relationships. When
engaged in negotiation, make sure you set aggressive goals and try to nd creative ways to achieve
the goals of both parties, especially when you value the long-term relationship with the other party.
That doesnt mean giving in on your self-interest; rather, it means trying to nd creative solutions
that give both parties what they really want.
Key Terms
194
Conict:
Intentions:
Collaborating:
Conict Management:
Mediator:
Arbitrator:
Summary
195
I. A DEFINITION OF CONFLICT
We dene conict as a process that begins when one party perceives that another party
has negatively affected, or is about to negatively affect, something that the rst party cares
about.
II. TRANSITIONS IN CONFLICT THOUGHT
A. The Traditional View
This early approach assumed that all conict was bad. By denition, it was harmful and
was to be avoided.
This view was consistent with the prevailing attitudes about group behavior in the 1930s
and 1940s. Conict was seen as a dysfunctional outcome resulting from poor communica-
tion, a lack of openness and trust between people, and the failure of managers to be re-
sponsive to their employees.
B. The Human Relations View
Conict is a natural occurrence in all groups and organizations.
The human relations view dominated conict theory from the late 1940s through the mid-
1970s.
C. The Interactionist View
The Interactionist view is the one taken in this chapter.
This approach encourages conict on the grounds that a harmonious, peaceful, tranquil,
and cooperative group is prone to becoming static and non-responsive to needs for change
and innovation.
Whether a conict is good or bad depends on the type of conict.
o Not all conicts are good. Functional, constructive forms of conict support the goals of
the group and improve its performance. Conicts that hinder group performance are
dysfunctional or destructive forms of conict.
> Task conict relates to the content and goals of the work. Low-to-moderate levels
of task conict are functional.
> Relationship conict focuses on interpersonal relationships. These conicts are
almost always dysfunctional.
> Process conict relates to how the work gets done. Low levels of process conict are
functional and could enhance team performance.
III. THE CONFLICT PROCESS
A. Stage I: Potential Opposition or Incompatibility
1. Communication
Communication as a source of conict represents those opposing forces that arise from
semantic difculties, misunderstandings, and noise in the communication channels.
2. Structure
Size and specialization act as forces to stimulate conict. The larger the group and more
specialized its activities, the greater the likelihood of conict.
3. Personal Variables
Include individual value systems and personality characteristics. Certain personality types
lead to potential conict.
Most important is differing value systems. Value differences are the best explanation for
differences of opinion on various matters.
Summary
196
B. Stage II: Cognition and Personalization
Conict is personalized when it is felt and when individuals become emotionally involved.
This stage is where conict issues tend to be dened and this denition delineates the
possible settlements.
Second, emotions play a major role in shaping perceptions.
C. Stage III: Intentions
1. Introduction
Intentions are decisions to act in a given way.
Primary conict-handling intentions are represented in Exhibit 152 along two dimen-
sions:
o Cooperativenessthe degree to which one party attempts to satisfy the other partys
concerns.
o Assertivenessthe degree to which one party attempts to satisfy his or her own con-
cerns.
Five conict-handling intentions can be identied: competing, collaborating, avoiding, ac-
commodating, and compromising.
2. Competing
3. Collaborating
4. Avoiding
5. Accommodating
6. Compromising
D. Stage IV: Behavior
Stage IV is where conicts become visible.
Stage IV is a dynamic process of interaction; conicts exist somewhere along a continuum.
Exhibit 154 lists the major resolution and stimulation techniques.
E. Stage V: Outcomes
1. Introduction
Outcomes may be functionalimproving group performance, or dysfunctional in hindering
it.
2. Functional Outcomes
Conict is constructive when it:
o Improves the quality of decisions.
o Stimulates creativity and innovation.
o Encourages interest and curiosity.
Conict is an antidote for groupthink.
o Increasing cultural diversity of the workforce should provide benets to organizations.
3. Dysfunctional Outcomes
Undesirable consequences:
o A retarding of communication
o Reductions in group cohesiveness
o Subordination of group goals to the primacy of inghting between members
4. Creating Functional Conict
If managers accept the interactionist view toward conict, they encourage functional con-
ict.
IV. NEGOTIATION
A. Introduction
Negotiation is a process in which two or more parties exchange goods or services and
attempt to agree upon the exchange rate for them. We use the terms negotiation and
bargaining interchangeably.
Summary
197
B. Bargaining Strategies
1. Distributive Tactics
Its most identifying feature is that it operates under zero-sum conditions. Any gain I make
is at your expense, and vice versa.
The most widely cited example of distributive bargaining is in labor-management negotia-
tions over wages.
2. Integrative Tactics
Integrative bargaining builds long-term relationships and facilitates working together in the
future; it bonds negotiators and allows each to leave the bargaining table feeling victori-
ous.
Distributive bargaining, on the other hand, leaves one party a loser. It tends to build ani-
mosities and deepens divisions.
C. The Negotiation Process
1. Preparation and Planning:
Do your homework.
Determine your and the other sides Best Alternative To a Negotiated Agreement (BATNA).
2. Denition of Ground Rules:
Who will do the negotiating? Where will it take place? What time constraints, if any, will
apply?
3. Clarication and Justication:
When initial positions have been exchanged, explain, amplify, clarify, bolster, and justify
your original demands.
4. Bargaining and Problem Solving:
The essence of the negotiation process is the actual give-and-take in trying to hash out an
agreement.
5. Closure and Implementation:
The nal stepformalizing the agreement that has been worked out and developing any
procedures that are necessary for implementation and monitoring.
D. Issues in Negotiation
1. The Role of Mood and Personality Traits in Negotiation
Overall assessments of the personality-negotiation relationship nd that personality traits
have no signicant direct effect on either the bargaining process or negotiation outcomes.
2. Gender Differences in Negotiations
Men and women do not negotiate differently.
The belief that women are nicer is probably due to confusing gender and the lack of
power typically held by women.
Womens attitudes toward negotiation and toward themselves appear to be different from
mens.
3. Cultural Differences in Negotiations
Negotiating styles clearly vary across national cultures.
The French like conict.
The Chinese also draw out negotiations but that is because they believe negotiations never
end.
Americans are known around the world for their impatience and their desire to be liked.
The cultural context of the negotiation signicantly inuences the amount and type of
preparation for bargaining, the emphasis on task versus interpersonal relationships, the
tactics used, etc.
4. Third-Party Negotiations
A mediator is a neutral third party who facilitates a negotiated solution by using reasoning
and persuasion, suggesting alternatives, and the like.
Summary
198
4. Third-Party Negotiations
A mediator is a neutral third party who facilitates a negotiated solution by using reasoning
and persuasion, suggesting alternatives, and the like.
An arbitrator is a third party with the authority to dictate an agreement.
A conciliator is a trusted third party who provides an informal communication link among
parties.
A consultant is a skilled and impartial third party who attempts to facilitate problem solv-
ing through communication and analysis, aided by his or her knowledge of conict man-
agement.
A. Conict can be either constructive or destructive
B. Inadequate or excessive conict
Reduced satisfaction
Increased absenteeism
Lower productivity
C. Optimal conict
Decreases apathy
Increases motivation
D. Handling conict
Competition
Collaboration
Avoidance
Accommodation
Compromise
E. Negotiation
Distributive bargaining
Self Test
199
1) The ________ view of conict argues that conict arises from management failure.
A) functional
B) conjunctive
C) traditional
D) interactionist
E) human relations

2) The human relations view of conict advocates ________ conict.
A) rejection of
B) encouraging
C) open communication for resolving
D) group therapy for resolving
E) acceptance of

3) According to the interactionists perspective, a group that functions without conict is
________.
A) living up to behavioral ideals
B) the most productive
C) prone to becoming static and apathetic
D) likely to be responsive to the need for change and innovation
E) a rare phenomenon

4) ________ conict relates to how the work gets done.

A) Job
B) Task
C) Reactive
D) Relationship
E) Process

5) For task conict to be productive, it should be ________.
A) kept high
B) subject to managerial control
C) kept at low-to-moderate levels
D) kept at moderate levels
E) kept low

6) The conict-handling intention of accommodating is ________.
A) unassertive and cooperative
Self Test
200
B) assertive and cooperative
C) reective and emotional
D) assertive and uncooperative
E) unassertive and uncooperative
7) Conict is dysfunctional when it ________.
A) reduces group cohesiveness
B) provides a medium to release tension
C) leads to change
D) provides a means for expressing frustration
E) fosters an environment of self-evaluation

8) The terms negotiation and ________ are used interchangeably.
A) accommodating
B) arbitration
C) bargaining
D) collaboration
E) win-lose

9) Your ________ determines the lowest value acceptable to you for a negotiated agree-
ment.
A) BATNA
B) bid price
C) margin of error
D) asking price
E) hidden value

Alpha Construction is having a dispute with a home buyer about some of the terms of
their building contract. Both Alpha and the home buyer want to avoid the expense of go-
ing to court, but they cannot agree on how to settle their disagreement.

10) Alpha wants to bring in a neutral third party who will facilitate a negotiated solution
by using reasoning, persuasion, suggesting alternatives, and the like. This person is
a(n) ________.
A) arbitrator
B) consultant
C) conciliator
D) mediator
E) ofciant
Answer Keys
201
Key Term Denitions
Conict: A process that begins when on party perceives that another party has negatively affected,
or is about to negatively affect, something that the rst party cares about.
Intentions: Decisions to act in a given way.
Collaborating: A situation in which the parties to a conict each desire to satisfy fully the concerns
of all parties.
Conict Management: The use of resolution and stimulation techniques to achieve the desired
level of conict.
Mediator: A neutral third party who facilitates a negotiated solution by using reasoning, persuasion,
and suggestions for alternatives.
Arbitrator: A third party to a negotiation who has the authority to dictate an agreement.
Answer Keys
202
1) C
2) E
3) C
4) E
5) C
6) A
7) A
8) C
9) A
10) D
Notes
203
Objectives
204
Chapter Number Sixteen
Foundations of Organization Structure
Learning Objectives
1. Identify the six elements of an organizations structure.
2. Identify the characteristics of a bureaucracy.
3. Describe a matrix organization.
4. Identify the characteristics of a virtual organization.
5. Show why managers want to create boundary-less organiza-
tions.
6. Demonstrate how organizational structures differ and con-
trast mechanistic and organic structural models.
7. Analyze the behavioral implications of different organiza-
tional designs.
8. Show how globalization affects organizational structure.
Overview
205
The theme of this chapter has been that an organizations internal structure contributes to explain-
ing and predicting behavior. That is, in addition to individual and group factors, the structural
relationships in which people work has a bearing on employee attitudes and behavior.
Whats the basis for the argument that structure has an impact on both attitudes and behav-
ior? To the degree that an organizations structure reduces ambiguity for employees and claries
concerns such as What am I supposed to do? How am I supposed to do it? To whom do I
report? and To whom do I go if I have a problem? it shapes their attitudes and facilitates and
motivates them to higher levels of performance.
Of course, structure also constrains employees to the extent that it limits and controls what
they do. For example, organizations structured around high levels of formalization and specializa-
tion, strict adherence to the chain of command, limited delegation of authority, and narrow spans
of control give employees little autonomy. Controls in such organizations are tight, and behavior
tends to vary within a narrow range. In contrast, organizations that are structured around limited
specialization, low formalization, wide spans of control, and the like provide employees greater
freedom and, thus, are characterized by greater behavioral diversity.
Exhibit 16-10 visually summarizes what weve discussed in this chapter. Strategy, size, tech-
nology, and environment determine the type of structure an organization will have. For simplicitys
sake, we can classify structural designs around one of two models: mechanistic or organic. The
specic effect of structural designs on performance and satisfaction is moderated by employees
individual preferences and cultural norms.
Finally, increasingly, technology is reshaping work such that organizational structures may
be increasingly amorphous. This allows a manager the exibility of taking into account things like
employee preferences, experience, and culture so as to design work systems that truly motivate
employees.
Key Terms
206
Organizational Structure:
Work Specialization:
Departmentalization:
Chain of Command:
Centralization:
Boundaryless Organization:
Summary
207
I. WHAT IS ORGANIZATIONAL STRUCTURE?
A. Introduction
An organizational structure denes how job tasks are formally divided, grouped, and coor-
dinated.
There are six key elements:
o Work specialization
o Departmentalization
o Chain of command
o Span of control
o Centralization and decentralization
o Formalization
B. Work Specialization
Managers also looked for other efciencies that could be achieved through work specializa-
tion:
o For much of the rst half of this century, managers viewed work specialization as an
unending source of increased productivity. By the 1960s, there became increasing
evidence that a good thing can be carried too far.
o Most managers today see work specialization as neither obsolete nor as an unending
source of increased productivity. Managers recognize the economies it provides and the
problems it creates when carried too far.
C. Departmentalization
Denition: Grouping these jobs together so common tasks can be coordinated is called
departmentalization.
One of the most popular ways to group activities is by functions performed.
Tasks can also be departmentalized by the type of product the organization produces.
Another way to departmentalize is on the basis of geography or territory.
Process departmentalization offers a basis for the homogeneous categorizing of activities.
A nal category of departmentalization is by type of customer.
D. Chain of Command
Denition: The chain of command is an unbroken line of authority that extends from the
top of the organization to the lowest echelon and claries who reports to whom.
o Authoritythe rights inherent to management to give orders and expect the orders to
be obeyed.
o The unity-of-command principle helps preserve the concept of an unbroken line of au-
thority. It states that a person should have only one superior to whom he/she is directly
responsible.
E. Span of Control
How many employees a manager can efciently and effectively direct is an important ques-
tion.
o Exhibit 163 illustrates that reducing the number of managers leads to signicant sav-
ings.
o However, at some point, wider spans reduce effectiveness.
Narrow spans have three major drawbacks:
o First, they are expensive because they add levels of management.
o Second, they make vertical communication in the organization more complex.
o Third, narrow spans of control encourage overly tight supervision and discourage em-
ployee autonomy.
F. Centralization and Decentralization
Centralization refers to the degree to which decision making is concentrated at a single
point. A centralized organization is inherently different structurally from one that is decen-
tralized.

Summary
208
In a decentralized organization, action can be taken more quickly to solve problems, more
people provide input into decisions, and employees are less likely to feel alienated.
G. Formalization
Formalization refers to the degree to which jobs within the organization are standardized.
The greater the standardization, the less input the employee has into how the job is done.
Low formalizationjob behaviors are relatively nonprogrammed, and employees have a
great deal of freedom to exercise discretion in their work.
II. COMMON ORGANIZATIONAL DESIGNS
A. The Simple Structure
The simple structure is most widely practiced in small businesses in which the manager
and the owner are one and the same. (See Exhibit 165, an organization chart for a retail
mens store.)
The strength of the simple structure lies in its simplicity. It is fast, exible, inexpensive to
maintain, and accountability is clear.
One major weakness is that it is difcult to maintain in anything other than small organiza-
tions.
The other weakness is that it is riskyeverything depends on one person. Illness can liter-
ately destroy the information and decision making center of the company.
B. The Bureaucracy
Standardizationthe key concept for all bureaucracies.
The bureaucracy is characterized by:
o Highly routine operating tasks achieved through specialization
o Very formalized rules and regulations
o Tasks that are grouped into functional departments
o Centralized authority
o Narrow spans of control
o Decision making that follows the chain of command
C. The Matrix Structure
It combines two forms of departmentalizationfunctional and product:
o The strength of functional departmentalizationputting like specialists together and the
pooling and sharing of specialized resources across products
o Its major disadvantage is the difculty of coordinating the tasks.
The most obvious structural characteristic of the matrix is that it breaks the unity-of-com-
mand concept. (Exhibit 166 shows the matrix form as used in a college of business ad-
ministration.)
III. NEW DESIGN OPTIONS
A.. The Virtual Organization
The essence of the virtual organization is that it is typically a small, core organization that
outsources major business functions:
o Also referred to as modular or network organization
o It is highly centralized, with little or no departmentalization.
When large organizations use the virtual structure, they frequently use it to outsource
manufacturing. Companies like Nike, Reebok, L.L. Bean, and Dell Computer can do busi-
ness without having to own manufacturing facilities.
Virtual organizations create networks of relationships that allow them to contract out busi-
ness function where management feels that others can do it better or more cheaply.
Summary
209
B. The Boundaryless Organization
Characteristics
o Seeks to eliminate chain of command
o Opens span of control
o Operates with empowered teams
o Relies heavily on technology
Removing vertical boundaries
o Flattens the organization structure
o Increases cross-hierarchical teams
Removing horizontal boundaries
o Increases interaction between departments
o Increases cross-functional teams
Removing external boundaries
o Blurs the line between organizations
o An approach to building alliances
Increases telecommuting

IV. WHY DO STRUCTURES DIFFER?
A. Introduction
There are two extreme models of organizational designmechanistic and organic. (See
Exhibit 168):
o The mechanistic modelsynonymous with the bureaucracyhas extensive departmen-
talization, high formalization, a limited information network (mostly downward), and
little participation in decision making.
o The organic model looks a lot like the boundaryless organization; it uses cross-hierarchi-
cal and cross-functional teams, low formalization, a comprehensive information
network, and high participation in decision making.
B. Strategy
An organizations structure is a means to help management achieve its objectives. Objec-
tives derive from the organizations overall strategy.
Structure should follow strategy.
An innovation strategy means a strategy for meaningful and unique innovations. This strat-
egy may appropriately characterize 3M Company.
A cost-minimization strategy tightly controls costs, refrains from incurring unnecessary
innovation or marketing expenses, and cuts prices in selling a basic product. This de-
scribes Wal-Marts strategy.
An imitation strategy tries to capitalize on the best of both innovation and cost-minimiza-
tion strategies:
Exhibit 169 describes the structural option that best matches each strategy.
C. Organizational Size
There is considerable evidence to support that an organizations size signicantly affects
its structure.
Large organizationsemploying 2,000 or more peopletend to have more specialization,
more departmentalization, more vertical levels, and more rules and regulations than do
small organizations.
D. Technology
Technology is the process by which inputs are turned into outputs
Technologies differ on their degree of routineness
Summary
210
o Routine tasks are often in organizations with tall structures
o If formalization in organizations is high, then routine technology will be accompanied by
decentralization
E. Environment
An organizations structure is affected by its environment because of environmental uncer-
tainty:
o Some organizations face static environmentsfew forces in their environment are
changing.
o Other organizations face very dynamic environmentsrapidly changing government
regulations affecting their business, new competitors, difculties in acquiring raw mate-
rials, etc.
There are three key dimensions to organizational environmentcapacity, volatility, and
complexity.
o Capacity
> The degree to which it can support growth.
o Volatility
> Refers to the degree of instability in an environment characterized by a high
degree of unpredictable change.
o Complexity
> The degree of heterogeneity and concentration among environmental elements.
V. ORGANIZATIONAL DESIGNS AND EMPLOYEE BEHAVIOR
One cannot generalize when linking organizational structures to employee performance and
satisfaction. There is no predominant preference among employees.
o Generally, work specialization contributes to higher employee productivity but reduces job
satisfaction.
o There seems to be no evidence to support a relationship between span of control and em-
ployee performance.
A. An organizations internal structure contributes to explaining and predicting behavior
B. The organizations structure can also affect an individuals attitude
C. The structure is often dened by strategy, size, technology, and environment
D. Employees hold implicit models of the organization structure
Self Test
211
1) Proctor & Gamble departmentalizes by Tide, Pampers, Charmin, and Pringles. This is
an example of departmentalization by ________.
A) function
B) geography
C) interest
D) process
E) product

2) ________ are consistent with recent efforts by companies to reduce costs, cut over-
head, speed up decision making, increase exibility, get closer to customers, and
empower employees.
A) Narrower spans of control
B) Simple structures
C) Matrix structures
D) Wider spans of control
E) None of the above

3) The more that lower-level personnel provide input or are actually given the discretion
to make decisions, the more ________ there is within an organization.
A) departmentalization
B) centralization
C) disempowerment
D) work specialization
E) decentralization

4) Which one of the following is consistent with a simple structure?
A) standardization
B) high employee discretion
C) bureaucracy
D) high horizontal differentiation
E) high centralization

5) A bureaucracy is characterized by all of the following except ________.
A) tasks that are grouped into functional departments
B) formalized rules and regulations
C) highly routine operating tasks
D) specialization
E) decentralized decision making
Self Test
212
6) Which of the following is not part of an organizations environment?
A) public pressure groups
B) the media
C) customers
D) competitors
E) personnel

7) Several key dimensions to any organizations environment have been found. Which of
the following is one of these key dimensions?
A) interdependence
B) collaboration
C) productivity
D) complexity
E) alignment

8) Volatility refers to the degree of ________ within an environment.
A) instability
B) exibility
C) resources
D) pressures
E) support

9) Which of the following generalizations about organizational structures and employee
performance and satisfaction is most accurate?
A) No evidence supports a relationship between span of control and employee perfor-
mance.
B) Large spans of control provide more distant supervision, thereby increasing employee
productivity.
C) Employees dislike routine work that makes minimal intellectual demands.
D) There is fairly strong evidence linking decentralization and job satisfaction.
E) The evidence generally indicates that work specialization contributes to lower em-
ployee productivity.

Matthew is a new divisional manager. In reorganizing his division, he must make some
decisions regarding the span of control for management within his division.

10) The question of span of control determines ________.
A) who reports to whom
B) how jobs will be grouped
C) where decisions are made
D) how employees will be compensated
E) the number of levels and managers an organization has
Answer Keys
213
Key Term Denitions
Organizational Structure: The way in which job tasks are formally divided, grouped, and coordi-
nated.
Work Specialization: The degree to which tasks in an organization are subdivided into separate
jobs.
Departmentalization: The basis by which jobs in an organization are grouped together.
Chain of Command: The unbroken line of authority that extends from the top of the organization to
the lowest echelon and claries who reports to whom.
Centralization: The degree to which decision making is concentrated at a single point in an organi-
zation.
Boundaryless Organization: An organization that seeks to eliminate the chain of command, have
limitless spans of control, and replace departments with empowered teams.
Answer Keys
214
1) E
2) D
3) E
4) E
5) E
6) E
7) D
8) A
9) A
10) E
Notes
215
Unit 4 Examination
Instructions
216
grading system:
B = 80% 89% correct
C = 70% 79% correct
D = 60% 69% correct
4 grade points
3 grade points
2 grade points
1 grade point
0 grade points
Completing Unit Four Examination
Unit 4 Examination
217
1) ________ is a way to use language to manage meaning.
A) Highlighting
B) Paralinguistics
C) Trust
D) Inuencing
E) Framing

2) Who was the rst researcher to consider charismatic leadership in terms of OB?
A) Max Weber
B) Bernard Bass
C) Robert House
D) Fred Fiedler

3) The type of leader who guides or motivates his or her followers in the direction of
established goals by clarifying role and task requirements is known as a ________
leader.
A) transactional
B) transcendent
C) actuarial
D) charismatic
E) transformational

4) Contrary to the full range of leadership model, ________ is sometimes more effective
than transformational leadership.
A) contingent reward leadership
B) individualized consideration leadership
C) inspirational motivation leadership
D) idealized inuence leadership
E) laissez-faire leadership

5) Who argues that transformational leadership is broader than charisma and that cha-
risma, by itself, is insufcient to account for the transformational process?
A) Robert House
B) Bernard Bass
C) Fred Fiedler
D) Max Weber
6) ________ are considered to use their charisma in a socially constructive way to serve
others.
Unit 4 Examination
218
A) Trusted leaders
B) Ethical leaders
C) Transformational leaders
D) Contingent reward leaders
E) Idealized inuence leaders

7) The text suggests that which of the following is most likely to affect the building of
trust within a relationship?
A) adaptability
B) consistency
C) openness
D) loyalty
E) integrity

8) According to the attribution theory of leadership, the key to being characterized as
an effective leader is projecting the ________ of being a leader rather than focusing
on ________.
A) attributes; substance
B) look; events
C) facade; reality
D) appearance; actual accomplishments
E) image; overcoming challenges

You are the manager in charge of a work team. You realize that high performance teams
are characterized by high mutual trust and it is your goal to make sure that your team has
this high level of trust. You wish to use the recent research that has identied the ve
dimensions that underlie the concept of trust as your model.

9) All of the following are ways you can build trust within the work team except
________.
A) showing loyalty to your team members
B) keeping negative thoughts to yourself
C) demonstrating your competence
D) practicing openness
E) speaking your feelings

10) The two general groupings of power are ________.
A) personal and formal
B) static and uid
C) informational and personal
D) formal and informal
E) informal and legitimate
Unit 4 Examination
219
11) Legitimate power is based on ________.
A) interpersonal trust
B) expert knowledge
C) positive rewards
D) respect and admiration
E) structural position

12) Which of the following tactics involves involving an individual in the decision-making
process?
A) exchange
B) ingratiation
C) pressure
D) consultation
E) inspirational appeals

Maries supervisor embarrasses her by constantly telling sexual jokes and by making
sexual comments. Marie was shocked when she observed that he had sexually explicit
material on his computer screen during working hours. Although the supervisor has never
directly asked Marie to sleep with him, she feels threatened and is so uncomfortable that
it is difcult for her to do her job.

13) Studies show that this situation is probably more about ________ than about sex.
A) politics
B) impressions
C) coercion
D) attitudes
E) power

14) What is one basic problem in this situation?
A) Maries perception is probably very different from her supervisors.
B) Its not clearly sexual harassment since he has not requested sexual favors.
C) Maries clothes are probably too suggestive.
D) There is an unequal power relationship between Marie and her supervisor.
E) It is very ambiguous as to who is at fault.
Jerrod is relatively new to Xenon Corporation and wants to make sure that he makes a
good impression on his coworkers and supervisor. He agrees with the supervisors opinion
most of the time and is always doing nice things for him. Jerrod makes sure that he as-
sociates with the right people and is constantly complimenting others about their good
work.
15) Jerrod is engaging in which of the following impression management techniques?
Unit 4 Examination
220
A) groveling
B) apologizing
C) mirroring
D) conformity
E) acclaiming

16) ________ conict supports the goals of the group and improves its performance.
A) Dysfunctional
B) Reactive
C) Formal
D) Informal
E) Functional

17) High job specialization can lead to ________ conict.
A) team
B) structural
C) personal-variable
D) job-related
E) communication

18) ________ intervene(s) between peoples perceptions and their overt behavior.
A) Attributions
B) Intention
C) Intuition
D) Cognition
E) Attitudes

19) Which of the following is most likely to promote the success of mediation?
A) shared perceptions of the mediator as biased
B) high level of conict intensity
C) shared perceptions of the mediator as coercive
D) extensive experience of the mediator
E) high motivation of the disputing parties

20) Which of the following methods of third-party negotiation always results in a
settlement?
A) arbitration
B) mediation
C) consultancy
D) execution
E) conciliation
Unit 4 Examination
221
21) In the late 1940s, most manufacturing jobs in industrialized countries were being
done with high ________.
A) decentralization
B) work specialization
C) departmentalization
D) structuralization
E) generalized structure

22) Proctor & Gamble departmentalizes by Tide, Pampers, Charmin, and Pringles. This is
an example of departmentalization by ________.
A) product
B) interest
C) process
D) geography
E) function

23) The simple structure is most widely practiced in small businesses in which ________.
A) managers are hired directly by the companys owner
B) managers have a high degree of inuence with the companys owner
C) management is limited to one individual
D) training budgets are limited
E) the owner also manages the company

24) The strength of the simple structure lies in its ________.
A) efciency
B) centralization
C) span of control
D) simplicity
E) specialization

Matthew is a new divisional manager. In reorganizing his division, he must make some
decisions regarding the span of control for management within his division.

25) The question of span of control determines ________.
A) who reports to whom
B) the number of levels and managers an organization has
C) how jobs will be grouped
D) how employees will be compensated
E) where decisions are made
Unit 4 Examination
222
Written Assignment for Unit Four

Plagiarism
1) Explain the four-step process that charismatic leaders use to inuence followers.

2) What power tactics can employees use to translate their power bases into specic
actions and how does each one work?

3) Explain the organizational component of work specialization. Discuss its advantages
and drawbacks.
You Can Do It
223
Congratulations!
You have completed Unit 4.
Now lets sharpen our pencils for the Final Exam.
We are condent you will do well.
Final Examination
Instructions
224
About the Final Examination
After you have successfully completed all of the Unit Examinations
and Written Assignments, it will be time for you to take the Final
Examination.
The Final Examination will be provided by Student Services only after
you have completed all four Unit Examinations and submitted all four
Writing Assignments.
Scheduling a Final Examination
Final Examination requests can be submitted via U.S. mail, online
through the Coast Connection student portal or by calling the Testing
Department at (714) 547-9625.
A Final Exam Scheduling Form is located on the last page of this
Study Guide. Please ll out all required elds and mail it to the
University.
If you would like to put in a Final Exam request online, log in to your
student account at www.calcoast-online.com and choose the Testing
link, then select Final Exam Scheduling.
Final Exams will only be sent if you have completed all four Unit
Examinations and submitted all four Writing Assignments.
Submitting Your Final Examination
Final Examinations can be submitted by mail, fax or online through
the student portal.
After you have completed your exam, you or your proctor can fax it to
the Grading Department at (714) 547-1451 or mail it to the
University. When faxing exams, please do not resize your fax.
For online submissions, once you have logged into the student portal,
click on the Testing tab and then choose either Proctored Final or
Non Proctored Final. If your nal was sent to your proctor, then he
or she will have to enter a password that was issued to them on the
Proctor Instruction Sheet for the course.
Online nal exam submissions must be completed in one session;
you can not save answers and go back to your exam later. We
recommend that you complete your nal exam on paper rst, then
transfer the answers to your online answer sheet.
Final Exam Scheduling
Form
The University requires a certain number of Final Examinations to be completed under the supervision of a
Proctor. At the time you enrolled or reinstated into your program, you were given the total number of
proctored Final Examinations required for your degree program. If this Final Examination is to be
proctored, please provide information on your designated Proctor. Otherwise, please complete Student and
Course Information only and submit this form with your Essay Examination.
Date _____________________________ Student I.D. ______________________________________________
Student Name ________________________________________________________________________________
Student Address ______________________________________________________________________________
City __________________________________________________ State _________________________________
Zip Code ________________ Country ____________________________________________________________
Student E-Mail Address ________________________________________________________________________
Daytime Telephone _____________________________ Evening Telephone _____________________________
Course Information:
Course __________________ Course Name _______________________________________________________
Textbook Title _________________________________________________________________________________
Textbook Edition ________________________
Please send the Final Examination to:
Proctors Name _______________________________________________________________________________
Proctors Relationship to Student ________________________________________________________________
Proctors Street Address: _______________________________________________________________________
City ______________________________ State _________________ Zip Code __________________________
Country __________________________________ Proctors E-Mail Address: ___________________________
Daytime Telephone _________________________ Evening Telephone _________________________________
Students Signature ________________________________________________________________________
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