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Assignment 1 of 4

Assignment1: Task Force Committee Report: Issue and Solutions

Due Week 4, worth 150 points

Leaders address issues and propose solutions. As a leader, you’ll need to stay on top of events that may facilitate or hinder productivity. You must create and implement solutions to address these issues.

This assignment exposes you to complex modern organizational challenges. The solutions you devise should reflect your learning and research of organizational and individual influences in the workplace.

Preparation

1. Select an organization
Select an organization in which current events have adversely affected productivity, requiring management to resolve an issue related to: corporate culture, managing diversity, leading teamwork, and developing motivational strategies. The organization should be one with which you are familiar — where you work now or have worked previously (business, nonprofit, government, or military). You may also consider other organizations in the news, such as Macy’s for the retail industry, United for the airline industry, Wells Fargo for the banking industry, etc. The focus is on finding solutions, but you should be somewhat familiar with the organization or industry.

2. Plan your research
Use research from the course textbook, company website, business websites (CNBC, Bloomberg, etc.), resources from the Strayer Library, or outside resources to develop solutions to the following questions as they relate to corporate culture, managing diversity, leading teamwork, and developing motivational strategies to achieve the organization’s goals and objectives. Your recommendations must be fully articulated and supported with appropriate detail and sources. Note: Wikipedia and web-based blogs do not qualify as credible resources.

Instructions

Imagine yourself as the task force committee leader at this organization. You have been tasked with analyzing hindrances to organizational efficiency. You must propose strategic solutions.

Create a full report in which you do the following:

1. Describe the Organization and the Issue to Resolve
Provide a brief description of the organization you selected. Present the organizational issue that adversely affected productivity and that you, the task force leader, will review and resolve.

2. Analyze Current Corporate Culture
How has the current corporate culture facilitated the development of the current issue? Research the organization, dig into the culture, and analyze how it contributed to this issue. Hint: Review the mission and vision statements as well as the corporate website.

3. Identify Areas of Weakness
What are the organization’s areas of weakness? Using your research on organizational behavior approaches to corporate culture, diversity, teamwork, and motivational strategies, identify areas.

4. Propose Solutions
What organizational practices would you modify? What solutions should your task force recommend to management? As the leader of the task force, identify the suggestions you would present to the organization’s leadership with regard to modifying current organizational practices to resolve the issue.

5. Prepare an Executive Summary
Summarize your recommendations and research findings in a one-page executive summary that you will present to the CEO in an upcoming executive meeting. Note: An executive summary is a condensed version of your full report. It should summarize briefly all the main points in concise paragraphs. It should be written clearly and should use language appropriate for the audience.

Strayer Writing Standards

Grading for this assignment will be based on the following criteria and evaluation standards:

Assignment 1: Task Force Committee Report: Issue and Solutions	Points: 150
Exemplary 90-100% A	Proficient 80-89% B	Fair 70-79% C	Unacceptable Below 70% F	Criteria
Fully describes the organization by providing a relevant and robust but concise overview of the company (e.g. when they were established, what service(s) or products they provide, and other relevant information). Additionally, the author fully describes the issue he/she has identified; what he/she knows about it and how it has impacted the company.	Sufficiently describes the organization and provides details about the company. The issue is identified and the author sufficiently describes what he/she knows about it and its impact on the company.	Partially describes the organization and provides some details about the company, but additional details would improve the description. The issue and its impact on the company are not clearly articulated.	Does not describe the organization or provide details about the company. The issue and its impact on the company are not provided.	1. Describe the Organization and the Issue to Resolve Weight: 20%
Completely describes the company’s culture by detailing how the company positions itself from internal and external perspectives. Draws strong, logical connections about how the culture did or could have supported/facilitated the challenge. Makes direct connections and supports points with source material.	Satisfactorily describes the company culture by drawing on and synthesizing corporate information about the company. Makes logical and realistic connections that are supported by source material.	Partially describes the company’s culture. Lacks details and/or multiple sources are not utilized to provide a well-rounded perspective. Makes loose connections that were not supported by sources or that were not fully articulated.	The culture is not described or the company is not differentiated completely from others. Poses unsupported connections or connections are not included.	2. Analyze Current Corporate Culture Weight: 20%
Completely identifies areas of weakness and provides strong details with logical connections and supporting source material.	Satisfactorily identifies areas of weakness and provides valid details supported by source material.	Partially identifies areas of weakness and makes loose connections between the weaknesses and supporting material.	Does not identify areas of weakness or does not provide supporting source material.	3. Identify Areas of Weakness Weight: 20%
Completely describes modifications to organizational practices and provides solutions with strong connections and supporting source material. Logically details how the solutions will resolve issue.	Satisfactorily describes modifications to organizational practices. Provides solutions that make some connections with supporting source material to indicate how the solutions will resolve the issue.	Partially describes modifications to organizational practices and solutions to resolve the issues. Lacks supporting details and source material.	Does not describe modifications to organizational practices, or does not identify solutions that would resolve the issue. No source material is provided.	4. Propose Solutions Weight: 20%
Prepares an exemplary executive summary. The issue and problem are clearly stated. All of the main points are summarized. Paragraphs are short and concise, providing the right amount of detail. Language is ideal for the audience.	Satisfactorily prepares an executive summary. The issue and problem are stated and most of the main points are summarized. Paragraphs could be more concise. Language is appropriate for the audience.	Prepares a partial executive summary. The issue and problem are not clearly stated and the main points are not summarized. Paragraphs are not short or concise. Language could be more appropriate for the audience.	Did not prepare a one-page executive summary.	5. Prepare an Executive Summary Weight: 10%
Writing is excellent. Tone is professional and sophisticated. Shows logic, clarity, and consistent formatting. Contains no spelling, mechanical, or grammatical errors. Is free of formatting and citation errors. Exceeds number of required references; all references are high-quality choices.	Writing could be improved, but meets acceptable standards. Tone is professional. Shows logic, clarity, and consistent formatting. May contain few or no spelling, mechanical, and/or grammatical errors. There may be minor formatting or citation errors. Meets the number of required references; all references are high-quality choices.	Writing is satisfactory. Professional tone is developing. Shows moderate logic, clarity, and/or consistent formatting. May contain more than a few spelling, grammar, mechanical, formatting, or citation errors. Does not meet the required number of references; some or all references are of poor quality.	Writing does not meet minimum standards. Tone is not professional. Communication is wholly lacking in logic, clarity, and/or consistent formatting. Contains many spelling, mechanical, formatting, citation, and/or grammatical errors. References are not provided.	6. Write Professionally Using Quality Resources Weight: 10%

Diversity,

Personality,

and Values

■ Bringing OB to LIFE
TAKING STEPS TO CURB BIAS IN PERFORMANCE ASSESSMENT

■ Worth Considering . . . or Best Avoided?
WOULD YOU PLEASE MOVE OVER? WE’RE MAKING ROOM FOR GENERATION Y

■ Checking Ethics in OB
PERSONALITY TESTING

■ Finding the Leader in you
STEPHEN HAWKING INSPIRES AND SOARS DESPITE DISABILITY

■ OB in Popular Culture
AMBITION AND THE SOCIAL NETWORK

■

Research Insight

TWIN STUDIES: NATURE OR NURTURE?

The Key Point

■ Why Are Individual

Diff erences

and Diversity

Important?

■ What Is

Personality?

■ How Are

Personality and

Stress Related?

■ What Are Values,

and How Do

Th ey Vary Across

Cultures?

Chapter at
a Glance

What’s Inside?

An understanding of organizational behavior begins with the individual. People

vary in their personalities, traits, values, and individual characteristics. Th ese indi-

vidual diff erences infl uence how we behave and work together in organizations. ■

28 CHAPTER 2 ■ Diversity, Personality, and Values

Individual Differences
and Diversity

L E A R N I N G

R O A D M A P

SELF CONCEPT, SELF-AWARENESS, AND AWARENESS OF OTHERS

VALUING-OR NOT VALUING-DIVERSITY • DIVERSITY ISSUES IN THE WORKPLACE

DIVERSITY AND SOCIAL IDENTITY

People are complex. You approach a situation one way, and someone else may approach

it quite diff erently. Th ese diff erences among people can make it diffi cult to predict and

understand individual behavior in relationships, teams, and organizations. Th ey also

contribute to what makes the study of organizational behavior so fascinating. Th e term

individual diff erences refers to the ways in which people are

similar and dissimilar in

personal characteristics.

Th e mix of individual diff erences in organizations creates workforce diversity. Some

of these diff erences are easily observable and often demographic. Th ey represent

surface-level diversity based on quite visible physical attributes such as ethnicity, race,

sex, age, and abilities. Other individual diff erences—such as personalities, values, and

attitudes—are more psychologically innate and less immediately visible. Th ey represent

deep-level diversity that may take time and eff ort to

understand.

Regardless of the level, diversity issues are of great interest in OB. Women, for exam-

ple, now lead global companies such as PepsiCo, Xerox, IBM, and Kraft. But they still hold

only 3 percent of top jobs in American fi rms.
2
Why have so few women so far made it to

the top?
3
Society is becoming more diverse in its racial and ethnic makeup. But a research

study found that résumés of people with white-sounding fi rst names—such as Brett—

received 50 percent more responses from potential employers than those with black-

sounding fi rst names—such as Kareem.
4
How can these results be explained given that

the résumés were created equal?

Self-Concept, Self-Awareness, and Awareness of Others

To best understand and deal well with individual diff erences and diversity, it only makes

sense that it’s important to have a strong sense of self. Th e self-concept is the view individ-

uals have of themselves as physical, social, and spiritual or

moral beings.

5
It is a way of recog-

nizing oneself as a distinct human being. Two factors that increase awareness of individual

diff erences—our own and others—are self-awareness and awareness of others. Self-

awareness means being aware of our own behaviors, preferences, styles, biases, personali-

ties, and so on. Awareness of others means being aware of these same things in others.

A person’s self concept shows up in self-esteem, a belief about one’s own worth based

on an

overall self-evaluation.

6
People high in self-esteem see themselves as capable, worth-

while, and acceptable; they tend to have few doubts about themselves. People who are low

in self-esteem are full of self-doubt and are often afraid to act because of it. Someone’s

self-concept is also displayed in self-effi cacy, sometimes called the eff ectance motive,

which is a more specifi c version of self-esteem. It is an individual’s belief about the likeli-

hood of successfully completing a specifi c task. You could have high self-esteem and yet

have a feeling of low self-effi cacy about performing a certain task, such as public speaking.

What determines the development of the self ? How, for example, can we explain

prejudice in the form of negative, irrational, and superior opinions and attitudes toward per-

sons who are diff erent from ourselves? Perhaps you have heard someone say “She acts like her

mother,” or “Bobby is the way he is because of the way he was raised.” Th ese two comments

illustrate the nature/nurture controversy: Are we the way we are because of heredity—genetic

endowment, or because of environment—the cultural places and situations in which we have

been raised and live? It is most likely that these two forces act in combination, with heredity

setting the limits and environment determining how a person develops within them.
7

Individual diff erences are

the ways in which people are

similar and dissimilar in
personal characteristics.

Surface-level diversity

involves individual diff erences

in visible attributes such as

race, sex, age, and physical

abilities.

Deep-level diversity involves

individual diff erences in

attributes such as personality

and values.

Self-concept is the view

individuals have of themselves

as physical, social, spiritual, or

moral beings.

Self-awareness means being

aware of one’s own behaviors,

preferences, styles, biases,

personalities, and so on.

Awareness of others is being

aware of the behaviors,

preferences, styles, biases, and

personalities of others.

Self-esteem is a belief about

one’s own worth based on an

overall self-evaluation.

Self-effi cacy is an individual’s

belief about the likelihood of

successfully completing a

specifi c task.

Prejudice is the display of

negative, irrational, and

superior opinions and

attitudes toward persons who

are diff erent from ourselves.

29Individual Diff erences and Diversity

Research Insight

There is a long-standing question in individual diff-erences psychology: How much of who we are is
determined by nature and how much by nurture? Research
fi ndings are beginning to provide fascinating insights into
this question by investigating samples of twins. Before you
read on, take a guess at the following: In thinking about
leadership, how much of leadership capacity do you think
is determined by nature and how much by nurture?

This question is being investigated in a research pro-
gram by Rich Arvey and colleagues. In a recent study, he
and his researchers used a sample of 178 fraternal and 214
identical female twins to see if they could generalize their
fi ndings that 30 percent of the variance in leadership role
occupancy among the male twins could be accounted for
by genetic factors. Their sample came from the Minnesota
Twin Registry—a registry of twins born in the state between
1936 and 1951 who had been reared together during child-
hood. Surveys were sent to the female twins with measures
assessing their history of holding leadership roles (i.e., lead-
ership role occupancy) and an assessment of developmen-
tal life experiences, including family and work experiences.

The results supported the pattern shown in the male
sample—32 percent of the variance in the women’s lead-
ership role occupancy was associated with hereditability.
Family experience and work experience were also related
to leadership role occupancy although, not surprisingly,
experiences at work are more important than family

Do the Research How close was your guess?
Do these fi ndings correspond with what you see in
your own families (e.g., with brothers and sisters or
with parents and children)? How would you test the
question of nature versus nurture?

Twin Studies: Nature or Nurture?

experiences in shaping women’s leadership develop-
ment. The fi ndings are important because they indicate
that developmental experiences can help both men and
women move into leadership roles.

Source: R. Arvey, Z. Zhang, B. Avolio, and R. Krueger, “Developmental and Genetic Determinants of Leadership Role Occupancy among
Women,” Journal of Applied Psychology 92.3 (2007), pp. 693–706.

Genetic
31.9%

Other
Environmental

Influences
56.6%

Work
Experience

11.5%

Valuing-or Not Valuing-Diversity

Th e U.S. population is not just getting bigger; it is more racially and ethnically diverse,

and it is getting older. Th e U.S. Census Bureau predicts that the country will become a

true plurality by 2060, with no one ethnic or racial group being in the majority. Hispanics

are now the fastest growing community and by 2060 will constitute one-third of the pop-

ulation. America is also growing demographically older ; by 2050 one in fi ve people will

be aged 65-plus.
8
What do these and other such demographic trends mean for everyday

living, for our personal relationships, for the way we work?

More and more organizations are embracing policies and practices to value diversity in

their workforces as a way to increase competitiveness, build talent, expand organizational

capabilities, and enhance access to diverse customers.
9
Individual diff erences are fast becom-

ing valued for the strengths that diversity can bring to a workforce.
10

If you need creativity,

for example, do you turn to people who think like you or to people who can help you think

diff erently? Moreover, when you need to understand something you have never encoun-

tered before, such as another culture or an emerging market, do you turn to people who are

the same as you or would you want access to co-workers familiar with those cultures?

Th e fl ip side of valuing diversity is outright discrimination against women and

minorities in the workplace. It occurs when minority members are unfairly treated and

Discrimination actively

denies minority members the

full benefi ts of organizational

membership.

30 CHAPTER 2 ■ Diversity, Personality, and Values

denied the full benefi ts of organizational membership. An example is when a manager

fabricates reasons not to interview a minority job candidate, or refuses to promote a

working mother on the belief that “she has too many parenting responsibilities to do a

good job at this level.” Such thinking underlies a form of discrimination called the glass

ceiling eff ect, an invisible barrier or “ceiling” that prevents women and minorities from

rising above a certain level of organizational responsibility.
11

Diversity Issues in the Workplace

Race and Ethnicity Th e value of heterogeneous perspectives within teams and
organizations can be gained from multicultural workforces with a rich mix of racial and

ethnic diversity. And Title VII of the Civil Rights Act of 1964 protects

individuals against

employment discrimination on the basis of race and ethnicity, as well as national origin,

sex, and religion. It applies to employers with 15 or more employees, including state and

local governments.

According to Title VII, equal employment opportunity cannot be denied any person

because of his/her racial group or perceived racial group, his/her race-linked characteris-

tics (e.g., hair texture, color, facial features), or because of his/her marriage to or associa-

tion with someone of a particular race or color. It also prohibits employment decisions

based on stereotypes and assumptions about abilities, traits, or the performance of indi-

viduals of certain racial groups. But, as noted earlier in the research showing prejudice in

job searches against person’s with black-sounding fi rst names, it’s still an imperfect world.
12

Gender Women are bringing not just task expertise but valuable interpersonal skills
and styles to the workplace, such as listening and collaborative skills, and abilities to

multitask and synthesize alternative viewpoints eff ectively and quickly. Research shows

that companies with a higher percentage of female board directors and corporate offi –

cers, on average, fi nancially outperform companies with the lowest percentages by signif-

icant margins.
13

Th e presence of women leaders is also benefi cial because they encourage

more women in the pipeline and act as role models and mentors for younger women.

Moreover, the presence of women leaders sends important signals that an organization

has a broad and deep talent pool, and off ers an inclusive workplace.

Despite these benefi ts to organizations and anti-discrimination protections aff orded

them under Title VII of the U.S. Civil Rights Act of 1964, women have not penetrated

the highest level of organizational leadership to the extent we would expect. Even worse,

many are still abandoning corporate careers just as they are positioned to attain

higher-level responsibilities. Th e term leaking pipeline was coined by Professor Lynda

Gratton and colleagues of the London Business School to describe this phenomenon.
14

In one study of 61 organizations operating in 12 European countries, they found that the

number of women decreases the more senior the roles become.

Th e nonprofi t research organization Catalyst reports that women consistently iden-

tify gender stereotypes as a signifi cant barrier to advancement and cause for the leaking

pipeline.
15

Th ey describe a “think-leader-think-male” mind-set in which men are largely

seen as leaders by default because of stereotypically masculine “take charge” skills such

as infl uencing superiors and problem solving. Women, by contrast are stereotyped for

“caretaking skills” such as supporting and encouraging others. Th is creates what is called

a leadership double bind for women. If they conform to the stereotype they are seen as

weak, and if they go against the stereotype they are breaking norms of femininity.

As some describe it, female leaders are “damned if they do, doomed if they don’t.”
16

Organizations can help address these stereotypes by creating workplaces that are more

meaningful and satisfying to successful women, such as cultures that are less

command-and-control and status-based. As Catalyst reports, “Ultimately, it is not

women’s leadership styles that need to change but the structures and perceptions that

must keep up with today’s changing times.”
17

Th e glass ceiling eff ect is

an invisible barrier limiting

career advancement of

women and minorities.

Title VII of the Civil Rights

Act of 1964 protects

individuals against

employment discrimination

on the basis of race and color,

as well as national origin, sex,

and religion.

Th e leaking pipeline

describes how women drop

out of careers before reaching

the top levels of organizations.

Th e leadership double bind

describes how women are

seen as weak in leadership if

they conform to the feminine

stereotype and also weak if

they go against it.

31Individual Diff erences and Diversity

Sexual Orientation Th e fi rst U.S. corporation to add sexual orientation to its non-
discrimination policy did so 30 years ago. Th at company was AT&T and its chairman,

John DeButts, said that his company would “respect the human rights of our employ-

ees.”
18

Although employment discrimination based on sexual orientation or gender

identity is not yet protected by federal legislation, such legislation has been proposed to

Congress (the Employment Non-Discrimination Act), and

individuals are protected

from sexual harassment bullying at work and school.
19

Also, many states now have exec-

utive orders protecting the rights of lesbian, gay, bisexual, and transgender workers.
20

Regardless of weak and incomplete legislative support, the workplace is beginning to

improve for gay Americans. Harris polling shows that 78 percent of heterosexual adults

in the United States agree that how an employee performs at his or her job should be the

standard for judging an employee, not one’s sexual orientation, while 62 percent agree

that all employees are entitled to equal benefi ts on the job, such as health insurance for

partners or spouses.
21

Age Age or generational diversity is aff ecting the workplace like never before. Popula-
tion demographics and economic trends have created a workforce where Millennials,

Gen Xers, and Baby Boomers have to work and get along together. Nonetheless, there are

BRINGING OB

TO LIFE
Taking Steps to Curb Bias in Performance Assessment
Try as we might, bias has a way of creeping into

performance assessments and other human resource

management decisions. But Harvard scholars Iris

Bohnet, Alexandra van Geen, and Max H. Bazerman may

have found a way to minimize or eliminate such implicit

discrimination. Th e key, they say, is to make sure

evaluators compare candidates directly rather than one

by one.

Th is advice comes from research that asked 100

participants to act as candidates for a new job. Th ey

performed a variety of math and verbal tasks chosen

by the researchers because of the common gender

stereotype that “females are believed to be worse at math

tasks and better at verbal tasks than males.” Another 554

study participants then acted as evaluators to select

candidates for a second round of testing. Th ey were

given test results and gender for each candidate. Some

evaluators were asked to evaluate the candidates one at

a time while others directly compared male and female

candidates.

Gender stereotypes infl uenced the one-by-one

evaluations, with female candidates more often chosen

for further verbal testing and male candidates for further

math testing. When male and female candidates were

evaluated together,

however, gender

stereotypes largely

disappeared.

Bohnet et al.

summarize the

research by noting

that “if you look at one

pair of shoes, it’s hard

to evaluate the quality

of those shoes. You will

be much more likely to

go with stereotypes or

heuristics or rules of

thumb about shoes.

But if you have several

pair of shoes available,

you’re much more

likely to be able to

compare diff erent attributes of the shoes.”

Has this OB research put its fi nger on a simple way to

remove bias from human resource decisions? Is it time

to stop assessing candidates one at a time and instead

compare them to one another directly?

“If you have several pair of shoes available, you’re much more likely to be able to

compare diff erent attributes of the shoes.”

Jon Feingersh Photography/
SuperStock/Corbis

32 CHAPTER 2 ■ Diversity, Personality, and Values

points of confl ict based on age stereotypes. Baby Boomers may view Millennials as feel-

ing a sense of entitlement and not being hard working due to the way they dress and their

interest in fl exible hours. Millennials may view Baby Boomers and Gen Xers as more

concerned about the hours they work than what they produce.
22

Th e generational mix in organizations provides an excellent example of how diver-

sity can deliver benefi ts. For example, Millennials seem to embrace gender equality and

sexual, cultural, and racial diversity more than any previous generation, and they bring

these values to work. Millennials also have an appreciation for community and

collaboration. Th ey can help create a more relaxed workplace that reduces some of the

problems that come from too much focus on status and hierarchy. At the same time,

Boomers and Gen Xers bring a wealth of experience, dedication, and commitment that

contribute to productivity, and a sense of professionalism that is benefi ting their

younger counterparts.
23

Ability In recent years the “disability rights movement” has been working to bring
attention and support to the needs of disabled workers.

24
Estimates indicate that over

50 million Americans have one or more physical or mental disabilities, and studies show

these workers do their jobs as well as, or better than, nondisabled workers. Despite this,

nearly three-quarters of severely disabled persons are reported to be unemployed, and

almost 80 percent of those with disabilities say they want to work.
25

WORTH CONSIDERING …OR BEST AVOIDED?

Employers fi nd a lot to like in the skills Generation Y members—the Millennials—bring to the workplace. No
problem with technology—they’re always on the cusp of
things. No problem with collaboration—they’ve grown up
with teamwork and social media. No problem either with
motivation—they’re task oriented and career focused.

But Gen Ys also need special handling. They can be
spoiled and self-centered, quick to complain when their
bosses don’t communicate enough, when their skills aren’t
fully tapped, and when work rules and bureaucracy get too
restrictive. They’re also impatient for new assignments and
promotions, and fl exible work arrangements. And when
they don’t get them they’re quick to move on. Loyalty to a
single-employer career isn’t part of their DNA.

Some employers go to great lengths to keep their Gen Ys
happy, even to the point where “older” employers feel a bit
put upon. The online book service Chegg cut middle man-
agement positions to make room for younger employees to
advance. CEO Dan Rosensweig said, “If they don’t feel like
they’re making a contribution to a company overall quickly,
they don’t stay.” Software fi rm Aprimo guarantees Gen Ys
promotion and a raise in a year if they perform up to expec-
tations. When some of the older workers balked at this
special treatment, President Bob Boehnlein said, “I had to
strong-arm a little bit.”

Would You Please Move Over?
We’re Making Room for Generation Y

Do the Analysis
Do Gen Ys deserve special treatment? And when they get
it, should it come at the expense of their more senior
co-workers? Just how do you blend the needs and interests
of a new generation of workers with others who have been
around awhile—perhaps quite awhile? Who gains and who
loses when the new generation pushes employers to rethink
the nature of the employment contract?

Barry Austin/Moodboard/Corbis

33Individual Diff erences and Diversity

Stephen Hawking Inspires and Soars Despite Disability

S tephen Hawking cannot speak and does not have use of his motor skills, but he doesn’t let that stop
him. Renowned for his work in theoretical physics, Hawk-
ing has been an infl uential voice in redefi ning the way
we see black holes and the origin of the universe. He is
perhaps most recognized for his book A Brief History of
Time, in which he works to translate Einstein’s general
theory of relatively and quantum theory for a general
audience.

Hawking was diagnosed with ALS, or Lou Gehrig’s
disease, a few years after his twenty-fi rst birthday. Over
time, ALS has gradually crippled his body, fi rst making
him dependent on a wheelchair and private nurse, and
then requiring 24/7 nursing care. He uses a voice synthe-
sizer devised by a colleague that allows him to type rather
than having to check letters off a card.

Despite his disability, Hawking has maintained an
extensive program of travel, public lectures, and televi-
sion appearances—even defying gravity by experiencing
weightlessness on a zero-gravity fl ight for two hours over
the Atlantic. His accomplishments and ability to live a full
life, with three children and three grandchildren, have

inspired people
around the world.
As Hawking says,
“I’m sure my disa-
bility has a bearing
on why I’m well
known. People are
fascinated by the
contrast between my
very limited physical
powers, and the vast nature of the universe I deal with.
I’m the archetype of a disabled genius, or should I say a
physically challenged genius, to be politically correct. At
least I’m obviously physically challenged. Whether I’m a
genius is more open to doubt.”

What’s the Lesson Here?
How do you respond to individual differences in the
workplace? Are you understanding of the strengths
and limitations of others? What about your own limita-
tions and challenges? Do you work to overcome them,
or do you let them bring you down?

Menahem KahanaAFP/GettyImages/NewsCom

IN YOU
FINDING THE LEADER

Th e passage of the Americans with Disabilities Act (ADA) in 1990 has been a signif-

icant catalyst in advancing their eff orts. Th e focus of the ADA is to eliminate employers’

practices that treat people with disabilities unnecessarily diff erent. Th e ADA has helped

to generate a more inclusive climate in which organizations are reaching out more to

people with disabilities. Th e most visible changes from the ADA have been in issues of

universal design—the practice of designing products,

buildings, public spaces, and

programs to be usable by the greatest number of people. You may see this in your own

college or university’s actions to make their campus and classrooms more accessible.
26

Th e disability rights movement is working passionately to advance a redefi nition of

what it means to be disabled in U.S. society. Th e goal is to overcome the stigmas attached

to disability. A stigma is a phenomenon whereby an individual with an attribute that is

deeply discredited by his or her society is rejected as a result of the attribute. Because of

stigmas, many are reluctant to seek coverage under the ADA because they do not want to

experience discrimination in the form of stigmas.

Diversity and Social Identity

Although in the past many organizations addressed the issue of diversity from the stand-

point of compliance with legal mandates, the focus is now on policies and practices of

inclusion.
27

Th is new focus represents a shift in thinking about how organizations can

create inclusive cultures for everyone.
28

Th e move from compliance to inclusion occurred primarily because employers began

to learn that although they were able to recruit diverse individuals, they were not able to

retain them. In work settings where upper ranks of organizations continued to be mostly

composed of white males, diffi cult questions started to be asked and answered: Do

employees in all groups and categories feel comfortable and welcomed in the organiza-

tion? Do they feel included, and do they experience the environment as inclusive?
29

Th e Americans with

Disabilities Act is a federal

civil rights statute that

protects the rights of people

with disabilities.

Universal design is the

practice of designing products,

buildings, public spaces, and

programs to be usable by the

greatest number of people.

A stigma is a phenomenon

whereby an individual is

rejected as a result of an

attribute that is deeply

discredited by his or her

society.

34 CHAPTER 2 ■ Diversity, Personality, and Values

Questions like those just posed are the focus of social identity theory as developed by

social psychologists Henri Tajfel and John Turner in their quest to understand the psycho-

logical

basis of discrimination.

According to the theory, individuals have not one but

multiple “personal selves.” Which self is activated depends on the group with which the

person identifi es. Th e mere act of identifying, or “categorizing,” oneself as a member of a

group will generate favoritism toward that group, and this favoritism is displayed in the

form of “in-group” enhancement. Th is in-group favoritism occurs at the expense of the

out-group. In terms of diversity, social identity theory suggests that simply having diversity

in groups makes that identity salient in peoples’ minds. Individuals engage these identities

and experience feelings of in-group membership and out-group membership.

Th e implications of social identity theory are straightforward. When organizations have

strong identities formed around in-group and out-group categorizations based on diversity,

this will work against a feeling of inclusion. Such in-group and out-group categorizations

can be subtle but powerful, and they may be most noticeable to those in the “out-group”

category. Organizations may not intend to create discriminatory environments, but when

only a few members of a group are present, this may evoke a strong out-group identity. Th ey

may end up feeling uncomfortable and less a part of the organization. Managers and orga-

nizations try to deal with all this by creating work cultures and environments that welcome

and embrace inclusion. Th e concept of valuing diversity emphasizes an appreciation of dif-

ferences while creating a workplace where everyone feels valued and accepted.
31

Personality
L E A R N I N G

R O A D M A P

BIG FIVE PERSONALITY TRAITS • SOCIAL TRAITS

PERSONAL CONCEPTION TRAIT

Th e term personality encompasses the overall combination of characteristics that

capture the unique nature of a person as that person reacts to and interacts with others.

It combines a set of physical and mental characteristics that refl ect how a person looks,

thinks, acts, and feels. Th ink of yourself, and of your family and friends. A key part of how

you interact with others depends on your own and their personalities, doesn’t it? If you

have a friend who has a sensitive personality, do you interact with that person diff erently

than you do with a friend or family member who likes to joke around?

Sometimes attempts are made to measure personality with questionnaires or special

tests. Frequently, personality can be inferred from behavior alone. Either way, personality

is an important individual characteristic to understand. It helps us identify predictable

interplays between people’s individual diff erences and their tendencies to behave in

certain ways.

Big Five Personality Traits

Numerous lists of personality traits—enduring characteristics describing an indivi-

dual’s behavior—have been developed, and used in OB research. A key starting point is to

consider the personality dimensions known as the “Big Five Model”:
32

■ Extraversion—the degree to which someone is outgoing, sociable, and assertive.

An extravert is comfortable and confi dent in interpersonal relationships; an intro-

vert is more withdrawn and reserved.

■ Agreeableness—the degree to which someone is good-natured, cooperative, and

trusting. An agreeable person gets along well with others; a disagreeable person is

a source of confl ict and discomfort for others.

■ Conscientiousness—the degree to which someone is responsible, dependable, and

careful. A conscientious person focuses on what can be accomplished and meets

Social identity theory is

a theory developed to

understand the psychological

basis of discrimination.

A feeling of in-group

membership exists when

individuals sense they are

part of a group and

experience favorable status

and a sense of belonging.

A feeling of out-group

membership exists when
individuals sense they are

not part of a group and

experience discomfort and

low belongingness.

Personality is the overall

combination of

characteristics that capture

the unique nature of a person

as that person reacts to and

interacts with others.

Personality traits are

enduring characteristics

describing an individual’s

behavior.

Big Five Personality �
Dimensions

35Personality

commitments; a person who lacks conscientiousness is careless, often trying to do

too much and failing, or doing little.

■ Emotional stability—the degree to which someone is relaxed, secure, and un-

worried. A person who is emotionally stable is calm and confi dent; a person lacking

in emotional stability is anxious, nervous, and tense.

■ Openness to experience—the degree to which someone is curious, open to new

ideas, and imaginative. An open person is broad-minded, receptive to new things,

and comfortable with change; a person who lacks openness is narrow-minded, has

few interests, and is resistant to change.

A considerable body of literature links the personality dimensions of the Big Five

model with behavior at work and in life overall. For example, conscientiousness is a good

predictor of job performance for most occupations, and extraversion is often associated

with success in management and sales. Indications are that extraverts tend to be happier

than introverts in their lives overall, that conscientious people tend to be less risky, and

that those more open to experience are more creative.
33

You can easily spot the Big Five personality traits in people with whom you work,

study, and socialize. But don’t forget that they also apply to you. Others form impressions

of your personality, and respond to it, just as you do in response to theirs. Managers often

use these and other personality judgments when making job assignments, building

teams, and otherwise engaging in the daily social give-and-take of work.

Social Traits

Social traits are surface-level traits that refl ect the way a person appears to others

when interacting in various social settings. A person’s problem-solving style, based on

the work of noted psychologist Carl Jung, is a good example. It refl ects the way someone

goes about gathering and evaluating information in solving problems and making deci-

sions. Problem-solving styles are most frequently measured by the typically 100-item

Myers-Briggs Type Indicator (MBTI), which asks individuals how they usually act or

feel in specifi c situations. Th e MBTI is often used by organizations to improve self-

awareness of participants in management development programs.
34

Th e fi rst component in Jung’s typology, information gathering, involves getting and

organizing data for use. Styles of information gathering vary from sensation to intuitive.

Sensation-type individuals prefer routine and order and emphasize well-defi ned details in

gathering information; they would rather work with known facts than look for possibili-

ties. By contrast, intuitive-type individuals prefer the “big picture.” Th ey like solving new

problems, dislike routine, and would rather look for possibilities than work with facts.

Social traits refl ect how a

person appears to others in

social settings.

Problem-solving style is

how we gather and evaluate

information when solving

problems.

Attractiveness Good for Men
But Bad for Women When
Job Hunting
Physical attractiveness is often considered a pathway

to advancement and career success. Th e better looking

among us, the reasoning goes, tend to fare better. But

researchers from Ben Gurion University and Ariel

University Centre in Israel faced unusual results when

they tackled “attractiveness” in a study of employment

practices. Th ey sent similar résumés with and without

photos of the job applicants to prospective employers.

Th ese photos of the male and female applicants were

rated for attrac-

tiveness. Findings

showed that

attractive males

were better off

sending photos

with their résumés,

but attractive

females were not.

Th e hiring bias against attractive women in the study

was explained as jealousy on the part of human

resource staff ers who are mostly female.

StockLite/Shutterstock

36 CHAPTER 2 ■ Diversity, Personality, and Values

OB IN POPULAR CULTURE

Ambition and
The Social Network
Sony’s movie The Social Network is based on Facebook’s
story and especially the role of visionary and contro-
versial founder Mark Zuckerberg (played by Jesse
Eisenberg). Although Zuckerberg calls the fi lm pure
“fi ction,” it raises ethical questions about his actions
while developing the initial Web site, refi ning it, and
eventually turning it into a global company valued at
over $50 billion. Two former Harvard classmates,
Cameron and Tyler Winklevoss, sued him, claiming the
original idea was theirs. Another early collaborator and
co-founder, Eduardo Saverin, was initially left out of the
new fi rm’s fi nancial gains.

In its reaction to the fi lm, Entertainment Weekly asks,
“Why did Zuckerberg betray these people? Or, in fact,
did he really?”

One thing that cannot be denied is Zuckerberg’s
ambition, the desire to succeed and reach for high
goals. He’s the youngest self-made billionaire in busi-
ness history. As the movie shows, ambition is one of
those personality traits that can certainly have a big
impact on individual behavior—both for the good and
for the bad.

Get to Know Yourself Better Watch The Social Network and discuss with your friends and classmates
how different personalities and talents played out in creating the Facebook revolution. What can you learn that
might help you deal with the ethics and intricacies of human behavior in work situations? Then take “Assessment 19:
Your Personality Type” in the OB Skills Workbook. Personality is a good starting point for exploring your prefer ences
and gaining a better understanding of who you are. How diffi cult would it be for someone else to understand you?
Spend a few minutes looking at that. After you score the assessment, sit down with your roommate or a close friend
and discuss the results. Is what you discovered consistent with how they see you?

Columbia Pictures/Photofest

Th e second component of problem solving, evaluation, involves making judgments

about how to deal with information once it has been collected. Styles of information

evaluation vary from an emphasis on feeling to an emphasis on thinking. Feeling-

type individuals are oriented toward conformity and try to accommodate themselves to

other people. Th ey try to avoid problems that may result in disagreements. Th inking-type

individuals use reason and intellect to deal with problems and downplay emotions.

When the two dimensions of information gathering and evaluation are combined,

four basic problem-solving styles can be identifi ed. As shown in Figure 2.1, people can be

classifi ed into combinations of sensation–feeling (SF), intuitive–feeling (IF), sensation–

thinking (ST), and intuitive–thinking (IT).

Research indicates that there is a fi t between the styles of individuals and the kinds of

decisions they prefer. For example, STs (sensation–thinkers) prefer analytical strategies—

those that emphasize detail and method. IFs (intuitive–feelers) prefer intuitive

strategies—those that emphasize an overall pattern and fi t. Not surprisingly, mixed styles

(sensation–feelers or intuitive–thinkers) select both analytical and intuitive strategies.

Other fi ndings also indicate that thinkers tend to have higher motivation than do feelers,

and that individuals who emphasize sensations tend to have higher job satisfaction than

do intuitives. Th ese and other fi ndings suggest a number of basic diff erences among

37Personality

diff erent problem-solving styles, emphasizing the importance of fi tting such styles with a

task’s information processing and evaluation requirements.
35

Personal Conception Traits

What are known as personal conception traits represent various ways people think

about their social and physical setting, their major beliefs, and personal orientations

toward a range of issues. Personal conception traits often discussed in the work context

include locus of control, proactive personality, authoritarianism/dogmatism, Machiavel-

lianism, and self-monitoring.

Locus of Control Th e extent to which a person feels able to control his or her own
life is known as locus of control.

36
People have personal conceptions about whether

events are controlled primarily by themselves, which indicates an internal orientation, or

by outside forces, such as their social and physical environment, which indicates an

external orientation. Internals, or persons with an internal locus of control, believe that

they control their own fate or destiny. In contrast, externals, or persons with an external

locus of control, believe that much of what happens to them is beyond their control and

is determined by environmental forces (such as fate).

In general, externals are more extraverted in their interpersonal relationships and are

more oriented toward the world around them. Internals tend to be more introverted and are

more oriented toward their own feelings and ideas. Figure 2.2 suggests that internals tend to

do better on tasks requiring complex information processing and learning as well as initiative.

Proactive Personality Some people in organizations are passive recipients when
faced with constraints, whereas others take direct and intentional action to change their

FIGURE 2.1 Four problem-
solving styles of the Jungian
typology.

Sensation–Feeling

Interpersonal
Specific human detail
Friendly, sympathetic
Open communication
Respond to people now
Good at:

Empathizing
Cooperating

Goal: To be helpful

Sensation–Thinking

Technical detail oriented
Logical analysis of hard data
Precise, orderly
Careful about rules and procedures
Dependable, responsible
Good at:

Observing, ordering
Filing, recalling

Goal: Do it correctly

Intuitive–Feeling

Insightful, mystical
Idealistic, personal
Creative, original
Global ideas oriented to people
Human potential
Good at:

Imagining
New combinations

Goal: To make things beautiful

Intuitive–Thinking

Speculative
Emphasize understanding
Synthesize, interpret
Logic-oriented ideas
Objective, impersonal, idealistic
Good at:

Discovery, inquiry
Problem solving

Goal: To think things through

Personal conception traits

show up as personal beliefs

and orientations toward

settings and issues.

Locus of control is the

extent a person feels able to

control his or her own life and

is concerned with a person’s

internal–external orientation.

38 CHAPTER 2 ■ Diversity, Personality, and Values

FIGURE 2.2 Ways in which
internal locus of control differs
from external locus of control.

Information processing

Job satisfaction

Performance

Self-control, risk, and
anxiety

Motivation,
expectancies, and
results

Response to

others

Internals make more attempts to acquire information,
are less satisfied with the amount of information they
possess, and are better at utilizing information.

Internals are generally more satisfied, less alienated,
less rootless, and there is a stronger job satisfaction/
performance relationship for them.

Internals perform better on learning and problem-
solving tasks when performance leads to valued
rewards.

Internals exhibit greater self-control, are more
cautious, engage in less risky behavior, and are less
anxious.

Internals display greater work motivation, see a
stronger relationship between what they do and what
happens to them, expect that working hard leads to
good performance, and feel more control over their time.

Internals are more independent, more reliant on
their own judgment, and less susceptible to the
influence of others; they are more likely to accept
information on its merit.

circumstances. Th e disposition that identifi es whether or not individuals act to infl uence

their environments is known as proactive personality. Individuals with high proactive

personalities identify opportunities and act on them, show initiative, take action, and

persevere until meaningful change occurs. Th ose low in proactivity are the opposite.

Th ey fail to identify—let alone seize—opportunities to change things. Th ey tend to be

passive and reactive, preferring to adapt to circumstances rather than change them.
37

In the ever more demanding world of work, many employers are seeking individuals

with more proactive qualities—individuals willing to take initiative and engage in pro-

active problem solving. Research supports this, showing that proactive personality is

positively related to job performance, creativity, leadership, and career success. Other

studies have shown that proactive personality is related to team eff ectiveness and

entrepreneurship. Moreover, when organizations try to make positive and innovative

change, these changes have more positive eff ects for proactive individuals—they are

more involved and more receptive to change. Th is research is showing that proactive

personality is an important and desirable element in today’s work environment.

Authoritarianism/Dogmatism Both authoritarianism and dogmatism as personal
conception traits deal with the rigidity of someone’s beliefs. A person high in authoritarian-

ism tends to adhere rigidly to conventional values and to obey recognized authority. Th is

person is concerned with toughness and power and opposes the use of subjective feelings.

Highly authoritarian individuals present a special problem because they can be so eager to

comply with directives from authority fi gures that they end up willing to behave unethically.
38

An individual high in dogmatism sees the world as a threatening place. Th is person

regards legitimate authority as absolute, and accepts or rejects others according to how

much they agree with accepted authority. Superiors who possess these latter traits tend

to be rigid and closed. At the same time, dogmatic subordinates tend to want certainty

imposed on them.

A proactive personality is

the disposition that identifi es

whether or not individuals

act to infl uence their

environments.

Authoritarianism is a

tendency to adhere rigidly to

conventional values and to

obey recognized authority.

Dogmatism leads a person to

see the world as a threatening

place and to regard authority

as absolute.

39Personality

Machiavellianism Th e very name of the sixteenth-century author Niccolo Machiavelli
often evokes visions of someone who acts with guile, deceit, and opportunism. Machiavelli

earned his place in history by writing Th e Prince, a nobleman’s guide to the acquisition and

use of power.
39

Th e subject of Machiavelli’s book is manipulation as the basic means of gain-

ing and keeping control of others. From its pages emerges the personality profi le of Machia-

vellianism—the practice of viewing and manipulating others purely for

personal gain.

Persons high in Machiavellianism approach situations logically and thoughtfully, and

are even capable of lying to achieve personal goals.
40

Th ey are rarely swayed by loyalty,

friendships, past promises, or the opinions of others, and they are skilled at infl uencing

others. Th ey can also be expected to take control and try to exploit loosely structured

environmental situations but will perform in a perfunctory, even detached, manner in

highly structured situations. Where the situation permits, they might be expected to do

or say whatever it takes to get their way. Th ose low in Machiavellianism, by contrast, tend

to be more strongly guided by ethical considerations and are less likely to lie, cheat, or get

away with lying or cheating.

Machiavellianism causes

someone to view and

manipulate others purely for

personal gain.

CHECKING ETHICS IN OB

Personality Testing
Dear [your name goes here]:
I am very pleased to invite you to a second round of
screening interviews with XYZ Corporation. Your on-
campus session with our representative went very well,
and we would like to consider you further for a full-time
position. Please contact me to arrange a visit date. We
will need a full day. The schedule will include several
meetings with executives and your potential team
members, as well as a round of personality tests.

Thank you again for your interest in XYZ Corp. I look
forward to meeting you during the next step in our
recruiting process.

Sincerely,
/signed/
Human Resource Director
Getting a letter like this is great news: a nice confi r-

mation of your hard work and performance in college.
You obviously made a good fi rst impression. But have
you thought about this “personality test” thing? What
do you know about them and how they are used for
employment screening?

Make the Decision What are the ethical issues of personality testing? When might the use of personality
tests be considered an invasion of privacy? When might their use be considered unethical? Now go back to the
situation just described: Will you take the tests at XYZ? Will you ask any questions about the tests when you contact
the human resources director? Is the fact that XYZ uses personality tests a positive or a negative in terms of your
likely fi t with the fi rm?

Tek Image/Photo Researchers, Inc.

The U.S. Equal Employment Opportunity Commis-
sion says that personality tests can’t have an adverse
impact on members of protected groups. And, a
report in the Wall Street Journal advises that lawsuits
can result when employers use personality tests that
weren’t specifi cally designed for hiring decisions.
Some people might even consider their use an
invasion of privacy.

40 CHAPTER 2 ■ Diversity, Personality, and Values

Self-Monitoring Self-monitoring refl ects a person’s

ability to adjust his or her

behavior to external, situational (environmental)

factors.

41
High self-monitors are sensitive

to external cues and tend to behave diff erently in diff erent situations. High self-monitors

can present a very diff erent appearance from their true self. In contrast, low self-monitors,

are less able to disguise their behaviors—“What you see is what you get.” Th ere is also

evidence that high self-monitors are closely attuned to the behavior of others and conform

more readily than do low self-monitors.
42

Th us, they appear fl exible and may be especially

good at adjusting their behavior to fi t diff erent kinds of situations and the people in them.

Personality and Stress
L E A R N I N G

R O A D M A P

TYPE A ORIENTATION AND STRESS • WORK AND LIFE STRESSORS

OUTCOMES OF STRESS • APPROACHES TO MANAGING STRESS

An individual’s personality can also be described in terms of emotional adjustment

traits that indicate how one handles emotional distress or displays unacceptable acts,

such as impatience, irritability, or aggression.
43

Among these, a personality with Type A

orientation is characterized by impatience, desire for achievement, and perfectionism. In

contrast, those with a Type B orientation are characterized as more

easygoing and less

competitive in relation to daily events.
44

Type A people tend to work fast and to be abrupt,

uncomfortable, irritable, and aggressive. Such tendencies may show up as “obsessive”

behavior. When carried to the extreme, it may lead to greater concerns for details than for

results, resistance to change, and overzealous attempts to exert control. In contrast, Type B

people tend to be much more laid back and patient in their relationships with others.

Type A Orientation and Stress

In one survey of college graduates, 31 percent reported working over 50 hours per week,

60 percent rushed meals and 34 percent ate lunches “on the run,” and 47 percent of those

under 35 and 28 percent of those over 35 had feelings of job burnout. A study by the Soci-

ety for Human Resources Management found that 70 percent of those surveyed worked

over and above scheduled hours, including putting in extra time on the weekends; over

50 percent said that the pressure to do the extra work was “self-imposed.”
45

Th e situations just described all evidence the presence of stress as a state of internal

tension experienced by individuals who perceive themselves as facing extraordinary

demands, constraints, or

opportunities.

If you look back to the discussion of Type A and

Type B personalities, the fact is that Type As often bring stress upon themselves. Th ey

may even do this in situations others may fi nd relatively stress free. You can spot Type A

personality tendencies in yourself and others through the following patterns of behavior:

■ Always moving, walking, and eating rapidly

■ Acting impatient, hurrying others, put off by waiting

■ Doing, or trying to do, several things at once

■ Feeling guilty when relaxing

■ Hurrying or interrupting the speech of others47

Work and Life Stressors

Not all stress that we experience is personality driven. Any variety of things can cause

stress for individuals. Some stressors can be traced directly to what people experience in

the workplace, whereas others derive from life situations and nonwork factors.

Work Stressors Th ere is no doubt that work can be stressful and job demands can
sometimes disrupt one’s work–life balance. Work stressors can arise from excessively

Self-monitoring is a person’s

ability to adjust his or her

behavior to external

situational (environmental)

factors.

Type A Behaviors �

Emotional adjustment

traits are traits related to

how much an individual

experiences emotional

distress or displays

unacceptable acts.

Persons with Type A

orientations tend to be

impatient, achievement

oriented, and

competitive.

Persons with Type B

orientations tend to be
easygoing and less
competitive.

Stress is a state of tension in

response to extraordinary

demands, constraints, or

opportunities.
Copyright © 2014 John Wiley & Sons, Inc.

41Personality and Stress

high or low task demands, role confl icts or ambiguities, poor interpersonal relations,

career progress that is either too slow or too fast, and more. Th e following is a list of com-

mon stressors:

■ Task demands—being asked to do too much or being asked to do too little

■ Role ambiguities—not knowing what one is expected to do or how work perfor-

mance is evaluated

■ Role confl icts—feeling unable to satisfy multiple, possibly confl icting, performance

expectations

■ Ethical dilemmas—being asked to do things that violate the law or personal values

■ Interpersonal problems—experiencing bad relationships or working with others

with whom one does not get along

■ Career developments—moving too fast and feeling stretched; moving too slowly

and feeling stuck on a plateau

■ Physical setting—being bothered by noise, lack of privacy, pollution, or other

unpleasant working conditions

Life Stressors Life stressors such as family events (e.g., the birth of a new child), eco-
nomic diffi culties (e.g., loss of income by a spouse), and personal aff airs (e.g., a separation

or divorce) can all be extremely stressful. Th at pretty much goes without saying. But it’s

also true that people can easily suff er from spillover eff ects that result when forces in their

personal lives spill over to aff ect them at work or when forces at work spill over to aff ect

their personal lives. Because it is often diffi cult to completely separate work and nonwork

lives, especially in this age of smart devices that keep us continually in touch with work

and personal aff airs, life stressors and spillover eff ects are highly signifi cant.

Outcomes of Stress

Th e stress we experience at work or in personal aff airs isn’t always negative. Scholars

talk about two types of stress.
48

Th e fi rst is eustress—constructive stress that results in

positive outcomes. It occurs when moderate—not extreme—stress levels prompt things

like increased work eff ort, greater creativity, and more diligence. You may know such

stress as the tension that causes you to study hard before exams, pay attention in class,

and complete assignments on time. Th e second type of stress is distress—destructive

stress that turns out to be dysfunctional for both the individual. Key symptoms of indi-

viduals suff ering distress are changes from regular attendance to absenteeism, from

punctuality to tardiness, from diligent work to careless work, from a positive attitude to

Eustress is constructive

stress that results in positive

outcomes for the

individual.

Distress is destructive stress

that is dysfunctional for the

individual.

Learning to Power Down:
Vacation Habits Vary Around
the World
“Most years I leave my vacation days on the table”—so

says a bank marketing manager. Sound farfetched? Not

necessarily; perhaps a bit extreme but still indicative of

a pattern. A global survey of vacation habits fi nds that

Americans on the average take fewer vacation days than

they are allowed: an average of 12 out of 14. Th ey leave

anywhere from 2 to 11 days unused. Th is contrasts with

French and Spanish workers who take all of their

allocated 30 days, whereas the Japanese take only 4 of

10. One worker says, “It’s almost not worth the stress of

having double the

work when you

get back.” Some

employers are

trying to curb

tendencies to

“work too much”

as a way of helping

people “do better

work.” Th e

consulting fi rm KPMG uses a wellness scorecard to

track and counsel workers who skip vacations and

work excessive overtime.

Photomorphic/Robert Churchill

� Common Work Stressors

42 CHAPTER 2 ■ Diversity, Personality, and Values

a negative attitude, from openness to change to resistance to change, or from coopera-

tion to hostility.

One possible outcome of extended distress, for example, is the job burnout that

shows up as loss of interest in and satisfaction with a job due to stressful working condi-

tions. Someone who is “burned out” feels emotionally and physically exhausted, and is

less able to deal positively with work responsibilities and opportunities. More extreme

reactions to distress include bullying of co-workers and even workplace violence. It is

also clear that too much stress can overload and break down a person’s physical and

mental systems, resulting in absenteeism, turnover, errors, accidents, dissatisfaction,

reduced performance, unethical behavior, and even illness.
49

Approaches to Managing Stress

Coping Mechanisms Along with rising sensitivities to stress in the workplace,
interest is also growing in how to manage, or cope, with distress.

Coping is a response or

reaction to distress that has occurred or is threatened. It involves cognitive and behav-

ioral eff orts to master, reduce, or tolerate the demands created by the stressful situation.

Th ere are two major types of coping mechanisms. Problem-focused coping strate-

gies try to manage the problem that is causing the distress. Indicators of this type of

coping are comments like “I’ll get the person responsible to change his or her mind,” “I’ll

make a new plan of action and follow it,” and “I’m going to stand my ground and fi ght for

what I need.” Emotion-focused coping strategies try to regulate the emotions drawn

forth by stress. Indicators of this type of coping include comments like “I’ll look for the

silver lining, try to look on the bright side of things,” “I’ll accept the sympathy and under-

standing off ered by others,” and “I’ll just try to forget the whole thing.”
50

People with diff erent personalities tend to cope with stress in diff erent ways. In respect

to the Big Five, emotional stability has been found linked with increased use of hostile reac-

tion, escapism/fantasy, self-blame,

withdrawal, wishful thinking, pas-

sivity, and indecisiveness. People

high in extraversion and optimism

tend to show rational action, posi-

tive thinking, substitution, and

restraint. And individuals high in

openness to experience are likely to

use humor in dealing with stress.

Stress Prevention Stress
prevention is the best fi rst-line

strategy in the battle against

stress. It involves taking action to

present stress from reaching

destructive levels. Work and life

stressors must be recognized

before one can take action to

prevent their occurrence or to

minimize their adverse impacts.

Persons with Type A personali-

ties, for example, may exercise

self- discipline, whereas supervi-

sors of Type A employees may

try to model a lower-key, more

relaxed approach to work. Family

Job burnout is a loss of

interest in or satisfaction with

a job due to stressful working

conditions.

Coping is a response or

reaction to distress that has

occurred or is threatened.

Problem-focused coping

mechanisms manage the

problem that is causing the

distress.

Emotion-focused coping are

mechanisms that regulate

emotions or distress.

Persons high in achievement-striving can be overwhelmed by opportunities.

Th ey may end up over committed and less successful in the long run. A key

element of managing stress is learning to say “No.”
51

When to Say No

• Focus on what matters most—focus on your priorities.

• Weigh the yes-to-stress ratio—how much added stress will this cause? Is it

worth it?

• Take guilt out of the equation—guilt is infl ated due to feeling of self-

importance—it’s okay to say no.

• Sleep on it—discipline yourself to not automatically say yes; what will it cost you?

How to Say No

• Just say no—or “I’m sorry but I can’t. . . .”

• Be brief—state your reason and avoid elaborations or justifi cations—“I’m

swamped.”

• Be honest—don’t fabricate reasons; the truth is always best and people do

understand.

• Be respectful—”I am honored to be asked but I can’t do it.”

• Be ready to repeat—stick to it if they ask again; just hit the replay button, don’t

give in.

Achievement-Striving, and Learning to Say “No”

43Values

problems may be partially relieved by a change of work schedule; simply knowing that

your supervisor understands your situation may also help to reduce the anxiety caused

by pressing family concerns.

Personal Wellness To keep stress from reaching a destructive point, special tech-
niques of stress management can be implemented. Th is process begins with the recogni-

tion of stress symptoms and continues with actions to maintain a positive performance

edge. Th e term wellness is increasingly used these days. Personal wellness involves the

pursuit of one’s job and career goals with the support of a personal health promotion pro-

gram. Th e concept recognizes individual responsibility to enhance and maintain wellness

through a disciplined approach to physical and mental health. It requires attention to such

factors as smoking, weight management, diet, alcohol use, and physical fi tness.

Values
L E A R N I N G

R O A D M A P
SOURCES OF VALUES • PERSONAL VALUES • CULTURAL VALUES

Values are broad preferences concerning appropriate courses of action or outcomes.

Th ey refl ect a person’s sense of right and wrong or what “ought” to be.
52

Statements

like “Equal rights for all” and “People should be treated with respect and dignity” are

indicators of values. And we recognize that values tend to infl uence attitudes and

behavior.

Sources of Values

Parents, friends, teachers, siblings, education, experience, and external reference groups

are all possible infl uences on individual values. Our values develop as a product of the

learning and experience we encounter in the cultural setting in which we live, as learning

and experiences diff er from one person to another. Value diff erences result. Such diff er-

ences are likely to be deep seated and diffi cult (though not impossible) to change. Many

have their roots in early childhood and the way a person has been raised.
53

Personal Values

Th e noted psychologist Milton Rokeach classifi ed values into two broad categories.
54

Terminal values refl ect a person’s preferences concerning the “ends” to be achieved; they are

the goals an individual would like to achieve during his or her lifetime. Instrumental values

refl ect the “means” for achieving desired ends. Th ey represent how you might go about

achieving your important goals. Rokeach identifi es the eighteen terminal values and

eighteen instrumental values shown in Figure 2.3. Take a look at the list. Th en ask this: What

are my top fi ve values, and what do they say about me and how I relate or work with others?

Bruce Meglino and colleagues discuss the importance of value congruence between

leaders and followers.
55

It occurs when individuals express positive feelings upon encoun-

tering others who exhibit values similar to their own. When values diff er, or are

incongruent, confl icts over such things as goals and the means to achieve them may

result. Research fi nds that satisfaction with a leader is greater when there is congruence

among the four values of achievement, helping, honesty, and fairness.
56

■ Achievement—getting things done and working hard to accomplish diffi cult things

in life

■ Helping and concern for others—being concerned for other people and with helping

others

■ Honesty—telling the truth and doing what you feel is right

■ Fairness—being impartial and doing what is fair for all concerned

Personal wellness involves

the pursuit of one’s job and

career goals with the support

of a personal health

promotion program.

Terminal values refl ect a

person’s preferences

concerning the “ends” to be

achieved.

Instrumental values refl ect a

person’s beliefs about the

means to achieve desired ends.

� Megilino Values Schema

Values are broad preferences

concerning appropriate

courses of action or

outcomes.

44 CHAPTER 2 ■ Diversity, Personality, and Values

Cultural Values

Values can also be discussed for their presence at the level of national or societal culture. In

this sense, culture can be defi ned as the learned, shared way of doing things in a particular

society. It is the way, for example, in which its members eat, dress, greet and treat one

another, teach their children, solve everyday problems, and so on.
57

Geert Hofstede, a Dutch

scholar and consultant, refers to culture as the “software of the mind,” making the analogy

that the mind’s “hardware” is universal among human beings.
58

But the software of culture

takes many diff erent forms. We are not born with a culture; we are born into a society that

teaches us its culture. And because culture is shared among people, it helps to defi ne the

boundaries between diff erent groups and aff ect how their members relate to one another.

Cultures are known to vary in their underlying patterns of values, and these diff erences

are important in OB. Th e way people think about such matters as achievement, wealth and

material gain, risk, and change, for example, may infl uence how they approach work and

their relationships with organizations. Increasingly now you will hear the term cultural

quotient (CQ) used to describe someone’s ability to work eff ectively across cultures. And it’s

a point well worth considering in terms of personal growth and professional development.

One framework for understanding how value diff erences across national cultures

was developed by the cross-cultural psychologist Hofstede. His framework is shown in

Figure 2.4 and includes these fi ve dimensions of national culture:

■ Power distance is the willingness of a culture to accept status and power diff er-

ences among its members. It refl ects the degree to which people are likely to respect

hierarchy and rank in organizations. Indonesia is considered a high-power-distance

culture, whereas Sweden is considered a relatively low-power-distance

culture.

■ Uncertainty avoidance is a cultural tendency toward discomfort with risk and am-

biguity. It refl ects the degree to which people are likely to prefer structured versus

unstructured organizational situations. France is considered a high- uncertainty-

avoidance culture, whereas Hong Kong is considered a low-uncertainty-avoidance

culture.

Culture is the learned and

shared way of thinking and

acting among a group of

people or society.

Cultural quotient, or CQ,

describes someone’s ability

to work eff ectively across

cultures.

Power distance is a culture’s

acceptance of the status and

power diff erences among its

members.

Uncertainty avoidance is

the cultural tendency to

be uncomfortable with

uncertainty and risk in

everyday life.

FIGURE 2.3 Terminal and Instrumental Values in the Rokeach value survey.

Instrumental Values

• Ambitious (hardworking)
• Broad-minded (open-minded)
• Capable (competent, effective)
• Cheerful (lighthearted, joyful)
• Clean (neat, tidy)
• Courageous (standing up for beliefs)
• Forgiving (willing to pardon)
• Helpful (working for others’ welfare)
• Honest (sincere, truthful)
• Imaginative (creative, daring)
• Independent (self-sufficient, self-reliant)
• Intellectual (intelligent, reflective)
• Logical (rational, consistent)
• Loving (affectionate, tender)
• Obedient (dutiful, respectful)
• Polite (courteous, well mannered)
• Responsible (reliable, dependable)
• Self-controlled (self-disciplined)

Terminal Values

• A comfortable life (and prosperous)
• An exciting life (stimulating)
• A sense of accomplishment (lasting contribution)
• A world at peace (free of war and conflict)
• A world of beauty (beauty of nature and the arts)
• Equality (brotherhood, equal opportunity)
• Family security (taking care of loved ones)
• Freedom (independence, free choice)
• Happiness (contentedness)
• Inner harmony (freedom from inner conflict)
• Mature love (sexual and spiritual intimacy)
• National security (attack protection)
• Pleasure (leisurely, enjoyable life)
• Salvation (saved, eternal life)
• Self-respect (self-esteem)
• Social recognition (admiration, respect)
• True friendship (close companionship)
• Wisdom (mature understanding of life)

45Values

■ Individualism–collectivism is the tendency of a culture to emphasize either indi-

vidual or group interests. It refl ects the degree to which people are likely to prefer

working as individuals or working together in groups. Th e United States is a highly

individualistic culture, whereas Mexico is a more collectivist one.

■ Masculinity–femininity is the tendency of a culture to value stereotypical mas-

culine or feminine traits. It refl ects the degree to which organizations emphasize

competition and assertiveness versus interpersonal sensitivity and concerns for

relationships. Japan is considered a very masculine culture, whereas Th ailand is

considered a more feminine culture.

■ Long-term/short-term orientation is the tendency of a culture to emphasize values

associated with the future, such as thrift and persistence, or values that focus largely

on the present. It refl ects the degree to which people and organizations adopt long-

term or short-term performance horizons. South Korea is high on long-term orienta-

tion, whereas the United States is a more short-term-oriented country.
59

Th e fi rst four dimensions in Hofstede’s framework were identifi ed in an extensive study of

thousands of employees of a multinational corporation operating in more than forty coun-

tries.
60

Th e fi fth dimension, long-term/short-term orientation, was added from research using

the Chinese Values Survey conducted by cross-cultural psychologist Michael Bond and his

colleagues.
61

Th eir research suggested the cultural importance of a value they called Confucian

dynamism, with its emphasis on persistence, the ordering of relationships, thrift, sense of

shame, personal steadiness, reciprocity, protection of “face,” and respect for tradition.
62

When using the Hofstede framework, it is important to remember that the fi ve cul-

tural value dimensions are interrelated, not independent.
63

National cultures may best be

understood in terms of cluster maps or collages that combine multiple dimensions. For

example, high power distance and collectivism are often found together, as are low power

distance and individualism. Whereas high collectivism may lead us to expect a work

team in Indonesia to operate by consensus, the high power distance may cause the con-

sensus to be heavily infl uenced by the desires of a formal leader. A similar team operating

in more individualist and low-power-distance Great Britain or America might make deci-

sions with more open debate, including expressions of disagreement with a leader’s

stated preferences.

Hofstede also warns against falling prey to the ecological fallacy. Th is is acting with

the mistaken assumption that a generalized cultural value, such as individualism in

American culture or masculinity in Japanese culture, applies equally to all members of

the culture.
64

And, fi nally, this model is just one starting point for developing cross-

cultural awareness of values and value diff erences, and other frameworks of interest are

available.
65

Long-term/short-term

orientation is the degree to

which a culture emphasizes

long-term or short-term

thinking.

FIGURE 2.4 Sample country
clusters on Hofstede’s fi ve
dimensions of national values.

Japan Mexico USA

Masculinity Femininity

SwedenThailand

India Malaysia Japan USA

High power distance Low power distance

Australia

Costa RicaJapan France

High uncertainty avoidance

SwedenUSA

Low uncertainty avoidance

USA Australia Japan

Individualism Collectivism

Mexico Thailand

NetherlandsUSA

Short-term thinking Long-term thinking

JapanIndia

Individualism–collectivism

is the tendency of members

of a culture to emphasize

individual self-interests or

group

relationships.

Masculinity–femininity is

the degree to which a society

values assertiveness or

relationships.

Ecological fallacy is acting

with the mistaken assumption

that a generalized cultural

value applies equally to all

members of the culture.

46 CHAPTER 2 ■ Diversity, Personality, and Values

Key Questions and Answers
Why are individual diff erences and diversity important?

• Th e study of individual diff erences attempts to identify where behavioral tendencies

are similar and where they are diff erent to more accurately predict how and why people

behave as they do.

• Self-concept is the view individuals have of themselves as physical, social, and spiritual

or moral beings. It is a way of recognizing oneself as a distinct human being.

• Both self-awareness (being aware of our own behaviors, preferences, styles, biases, and

personalities) and awareness of others (being aware of these same things in others) are

important capabilities if we are to best understand individual diff erences and diversity.

• Th e nature/nurture controversy addresses whether we are the way we are because of

heredity or because of the environments in which we have been raised and live.

• Th ere are many types of diversity, but the most commonly discussed in the workplace

are racial/ethnic, gender, age, disability, and sexual orientation.

• In recent years there has been a shift from a focus on diversity to a focus on inclusion.

Th is represents a need to emphasize not only recruitment but retention.

• Social identity theory suggests that many forms of discrimination are subtle but power-

ful, and may occur in subconscious psychological processes that individuals of out-

groups perceive in the workplace.

• Organizations can value diversity by promoting cultures of inclusion that implement policies

and practices to help create a more equitable and opportunity-based environment for all.

What is personality?

• Personality captures the overall profi le, or combination of characteristics, that repre-

sents the unique nature of an individual as that individual interacts with others.

• Personality is determined by both heredity and environment; across all personality

characteristics, the mix of heredity and environment is about 50–50. Th e Big Five

personality traits are extraversion, agreeableness, conscientiousness, emotional stability,

and openness to experience.

• A useful personality framework consists of social traits, personal conception traits,

emotional adjustment traits, and personality dynamics, where each category repre-

sents one or more personality dimensions.

How are personality and stress related?

• Stress emerges when people experience tensions caused by extraordinary demands,

constraints, or opportunities in their jobs.

• Personal stressors derive from personality type, needs, and values; they can infl uence

how stressful diff erent situations become for diff erent people.

• Work stressors arise from such things as excessive task demands, interpersonal prob-

lems, unclear roles, ethical dilemmas, and career disappointments.

• Nonwork stress can spill over to aff ect people at work; nonwork stressors may be traced

to family situations, economic diffi culties, and personal problems.

• Stress can be managed by prevention—such as making adjustments in work and nonwork

factors; it can also be dealt with through coping mechanisms and personal wellness—taking

steps to maintain a healthy body and mind capable of better withstanding stressful situations.

Study Guide2

47Self-Test 2

What are values, and how do they vary across cultures?

• Values are broad preferences concerning courses of action or outcomes.

• Rokeach identifi es terminal values (preferences concerning ends) and instrumental

values (preferences concerning means); Meglino and his associates classify values into

achievement, helping and concern for others, honesty, and fairness.

• Hofstede’s fi ve dimensions of national culture values are power distance, individualism–

collectivism, uncertainty avoidance, masculinity–femininity, and long-term/short-

term orientation.

• Culture is the learned and shared way of doing things in a society; it represents deeply

ingrained infl uences on the way people from diff erent societies think, behave, and solve

problems.

Terms to Know
Americans with

Disabilities Act (p. 33)

Authoritarianism (p. 38)

Awareness of others (p. 28)

Coping

(p. 42)

Culture (p. 44)

Cultural quotient (p. 44)

Deep-level diversity (p. 28)

Discrimination (p. 29)

Distress (p. 41)

Dogmatism (p. 38)

Ecological fallacy

(p. 45)

Emotion-focused coping

(p. 42)
Emotional adjustment

traits (p. 40)

Eustress (p. 41)

Glass ceiling eff ect

(p. 30)

In-group membership

(p. 34)

Individual diff erences (p. 28)

Individualism–collectivism
(p. 45)

Instrumental values (p. 43)

Job burnout (p. 42)

Leaking pipeline (p. 30)

Leadership double bind

(p. 30)

Locus of control

(p. 37)

Long-term/short-term

orientation (p. 45)

Machiavellianism (p. 39)

Masculinity–femininity

(p. 45)

Out-group membership

(p. 34)
Personal conception traits
(p. 37)

Personal wellness (p. 43)

Personality (p. 34)

Personality traits (p. 34)

Power distance (p. 44)

Prejudice (p. 28)

Proactive personality (p. 38)

Problem-focused coping
(p. 42)

Problem-solving style (p. 35)

Self-awareness (p. 28)

Self-concept (p. 28)

Self-effi cacy (p. 28)

Self-esteem (p. 28)

Self-monitoring (p. 40)

Social identity theory (p. 34)

Social traits (p. 35)

Stigma (p. 33)

Stress (p. 40)

Surface-level diversity (p. 28)

Terminal values (p. 43)

Title VII of the Civil Rights

Act of 1964 (p. 30)

Type A orientation (p. 40)

Type B orientation (p. 40)

Uncertainty avoidance (p. 44)

Universal design (p. 33)

Values (p. 43)

Self-Test 2
Multiple Choice

1. Individual diff erences are important because they

____________.

(a) mean we have to be diff erent

(b) reduce the importance of individuality

(d) help us more accurately predict how and why people act as they do

2. Self-awareness is ____________ awareness of others.

(a) more important than (b) less important than

48 CHAPTER 2 ■ Diversity, Personality, and Values

3. Self-effi cacy is a form of ____________.

(a) self-awareness (b) self-esteem

4. Personality encompasses ____________.

(a) the overall combination of characteristics that capture the unique nature of a person

(b) only the nurture components of self

(d) how self-aware someone is

5. People who are high in internal locus of control ____________.

(a) believe what happens to them is determined by environmental forces such as fate

(b) believe that they control their own fate or destiny

(d) do worse on tasks requiring learning and initiative

6. Proactive personality is ____________ in today’s work environments.

(a) punished (b) missing

7. People who would follow unethical orders without question would likely be high in

____________.

(a) internal locus of control

(b) Machiavellianism

(d) authoritarianism and dogmatism

8. Managers who are hard-driving, detail-oriented, have high performance standards,

and thrive on routine could be characterized as ____________.

(a) Type B (b) Type A

9. Eustress is ____________ stress, while distress is ____________ stress.

(a) constructive, destructive (b) destructive, constructive

10. Coping involves both ____________ and ____________ elements.

(a) cognitive, intellectual (b) promotion, prevention

11. When it comes to values, ____________.

(a) instrumental values are more important than terminal values

(b) value congruence is what seems to be most important for satisfaction

(d) most cultures share the same values

12. Culture is ____________.

(a) a person’s major beliefs and personal orientation concerning a range of issues

(b) the way a person gathers and evaluates information

(d) the learned, shared way of doing things in a particular society

Steps for Further Learning 2

13. Th e demographic makeup of the workforce ____________.

(a) has been relatively stable

(b) is not related to managerial practices

(d) is becoming less of an issue for management.

14. Companies that ____________ experience the greatest benefi ts of workforce diversity.

(a) have learned to employ people because of their diff erences

(b) have learned to employ people in spite of their diff erences

(d) have implemented diversity programs based only on affi rmative action

15. Th e experience in which simply having various diversity groups makes that group

category salient in people’s minds is an example of ____________.

(a) stigma (b) leaking pipeline

Short Response

16. What are individual diff erences, and why are they important to organizational

behavior?

17. What is more infl uential in determining personality: nature or nurture?

18. What values were identifi ed by Meglino and associates, and how do they relate to

workplace behavior?

19. With respect to diversity and inclusion, what do we know about environments that

are most conducive to valuing and supporting diversity?

Applications Essay

20. Your boss has noticed that stress levels have been increasing in your work unit and

has asked you to assess the problem and propose a plan of action for addressing it.

What steps would you take to meet this request? What would be the fi rst thing you

would do, what factors would you take into consideration in conducting your assess-

ment, and what plan of action do you think would be most promising?

Case for
Critical Thinking

Team and
Experiential Exercises

Self-Assessment
Portfolio

• Diversity Leads the Way • What Do You Value in
Work?

• Prejudice in Our Lives
• How We View Differences
• Alligator River Story
• Expatriate Assignments

• Turbulence Tolerance
Test Global Readiness
Index

• Personal Values
• Time Management Profi le
• Personality Type

Steps for Further Learning 2

Top Choices from Th e OB Skills Workbook

Th ese learning activities from Th e OB Skills Workbook found at the back of the book

are suggested for Chapter 2.

M
at

t
R

o
u

rk
e

/A
P

A discerning eye tells the story

Perception,

Attribution,

and Learning

■ Bringing OB to LIFE
RAISING EXPECTATIONS AND GETTING BETTER FEEDBACK

■ Worth Considering . . . or Best Avoided?
NOT ENOUGH WOMEN ON BOARD? EUROPE TURNS TO QUOTAS

■ Checking Ethics in OB
WORKERS REPORT VIEWS ON ETHICAL WORKPLACE CONDUCT

■ Finding the Leader in You
RICHARD BRANSON LEADS WITH PERSONALITY AND POSITIVE REINFORCEMENT

■ OB in Popular Culture
POSITIVE REINFORCEMENT AND BIG BANG THEORY

■

Research Insight

INTERACTIONAL JUSTICE PERCEPTIONS AFFECT INTENT TO LEAVE

The Key Point

■ What Is Perception,

and Why Is It

Important?

■ What Are

the Common

Perceptual

Distortions?

■ What Is the

Link Between

Perception,

Attribution, and

Social Learning?

■ What Is Involved

in Learning by

Reinforcement?

Chapter at
a Glance

What’s Inside?

It can be a shock when people view the same thing and come to diff erent conclusions.

But this is reality—people often perceive and respond to situations in diff erent

ways. Th e better we understand perception and attribution and their eff ects on

how people behave and learn, the better we can be at dealing with events, people,

and relationships. ■

52 CHAPTER 3 ■ Perception, Attribution, and Learning

The Perception Process

L E A R N I N G

R OA D M A P

FACTORS INFLUENCING PERCEPTION

INFORMATION PROCESSING AND THE PERCEPTION PROCESS

PERCEPTION, IMPRESSION MANAGEMENT, AND SOCIAL MEDIA

Perception is the process by which people select, organize, interpret, retrieve, and

respond to infor

mation from the world around them.

1
It is a way of forming impressions

about ourselves, other people, and daily life experiences. It also serves as a screen or fi lter

through which information passes before it has an eff ect on people. Because perceptions

are infl uenced by many factors, diff erent people may perceive the same situation quite

diff erently. Since people behave according to their perceptions, the consequences of

these diff erences can be great in terms of what happens next.

Consider the example shown in Figure 3.1. It shows substantial diff erences in how

performance-review discussions are perceived by managers and members of their work

teams. Th e managers here may end up not giving much attention to things like career

development, performance goals, and supervisory support since they perceive that these

issues were adequately addressed at performance-review time. However, the team mem-

bers may end up frustrated and unsatisfi ed because they perceive that less attention was

given and they want more.

Factors Infl uencing Perception

We can think of perception as a bubble that surrounds us and infl uences signifi cantly

the way we receive, interpret, and process information received from our environ-

ments. As the perception process varies, so too can things like decisions made and

actions taken. When someone does things that we don’t understand or in ways that

we don’t understand or that surprise us, the reason may well be due to the fact that

their perceptions in the situation diff ered from ours or what we would normally

Perception is the process

through which people receive

and interpret information

from the

environment.

FIGURE 3.1 Contrasting
perceptions between managers
and subordinates regarding
performance appraisal
interviews.

No
Mention

When asked ho

much these points were
discussed during
performance
reviews

the managers in
this study and their
team members
responded
as follows:

High
Mention

Some
Mention

3
Past performance

Career development

Performance development

Need for supervisor’s help

Future performance goals

Salary

Manager’s
perceptions

Team member’s
perceptions

53Th e Perception Process

expect. Th e many factors infl uencing perception include characteristics of the

perceiver, the setting,

and the perceived.

Characteristics of the Perceiver A person’s past experiences, needs or
motives, personality, values, and attitudes may all influence the perceptual process.

Someone with a strong need for achievement need tends to perceive a situation

in terms of that need. If doing well in class is perceived as a way to help meet your

achievement need, for example, you will tend to emphasize that aspect when choos-

ing classes to take. In the same way, a person with a negative attitude toward younger

workers may react poorly when asked to work for a young, newly hired but very

competent team leader.

Characteristics of the Setting Th e physical, social, and organizational context
can infl uence the perception process. A teammate perceived by peers as temperamental

may well be tolerated on the team. But take that person and make them the team leader

and the same temperamental behavior may be perceived as bullying or intimidating.

Characteristics of the Perceived Characteristics of the perceived
person, object, or event are also important in the perception process. We talk

about them in terms of contrast, intensity, fi gure–ground separation, size, motion,

and repetition or novelty. In respect to contrast, for example, one iPad among six

Android tablets or one man among six women will be perceived diff erently than

one of six iPad computers or one of six men. In respect to intensity, a bright red

sports car stands out from a group of gray sedans; whispering or shouting stands

out from ordinary conversation. Th is links with a concept known as fi gure–ground

separation. Look, for example, at the margin illustration. What do you see, faces or

a vase? It depends on which image is perceived as the background and which as

the fi gure or object of our attention.

In the matter of size, very small or very large objects or people tend to be

perceived diff erently. In terms of motion, moving objects and people are per-

ceived diff erently than stationary ones. In addition, repetition or frequency can

also infl uence perceptions. Television advertisers well know that the more they

put something in front of us the more likely we are to give it attention. Finally, the

novelty of a situation aff ects its perception. A college student who enters class with

streaks of hair dyed purple may be perceived quite diff erently by an instructor than

others with a more common hair color.

Information Processing and the Perception Process

Th e ways we process information during the perception process aff ect how we respond

to experiences through feelings, thoughts, and actions taken. Th e four stages of this infor-

mation processing are attention and selection, organization, interpretation, and retrieval.

A good understanding of these stages can help us manage our own perceptions better, as

well as both understand and infl uence the perceptions of others.

Attention and Selection Our senses are constantly bombarded with so much
information that if we don’t screen it, we quickly become incapacitated with information

overload. We tend to deal with this through selective screening that lets in only a tiny

portion of all the information available.

Some of the selective screening that we do comes from controlled processing: con-

sciously deciding what information to pay attention to and what to ignore. Th ink, for

example, about the last time you were at a noisy restaurant and screened out all the

sounds but those of the person with whom you were talking. Some screening also takes

Selective screening allows

only a portion of available

information to enter our

perceptions.

54 CHAPTER 3 ■ Perception, Attribution, and Learning

place without conscious awareness. We often drive cars without thinking about the

process; we’re aware of things like traffi c lights and other cars, but we don’t pay con-

scious attention to them. Th is selectivity of attention and automatic information pro-

cessing works well most of the time. But if a nonroutine event occurs, such as an animal

darting in front of your vehicle, you may have an accident unless you quickly shift to

controlled processing.

Organization Even when selective screening takes place in the attention stage,
it’s still necessary for us to organize information efficiently. This is done to some

extent through schemas. These are cognitive frameworks that represent organized

knowledge developed through experience about a concept or stimulus.
2
The schemas

most commonly used are script schemas, person schemas, and person-in-situation

schemas.

A script schema is a knowledge framework that describes the appropriate sequence of

events in a given

situation.

3
For example, an experienced team leader might use a script

Schemas are cognitive

frameworks that represent

organized knowledge

developed through experience

about people, objects, or

events.

BRINGING OB

TO LIFE
Raising Expectations and Getting Better Feedback
Wine tasting test: Does a glass of wine taste better if you

have never heard of the vintage or if you have previously

read a positive review of it? As you might expect, it will

most often be the one that you taste after reading the

positive review. Th e reason traces to a common OB

understanding of perception and expectations. We

basically end up perceiving things—the glass of wine, a

test drive of a new BMW, or a new teammate—as we

expect them to be.

Does this mean that before your next big presentation

to the class or to an executive team you should prepare

the audience by announcing ahead of time “You’re going

to like this one”? Well, perhaps—but some caution is in

order. Raising expectations can be overplayed with the

result that disappointment sets in. Th ink of a movie or

restaurant recommendation you might have made to a

friend. You raved about it and just couldn’t wait for him

to have the same experience. Instead, he reports, “It

was okay but not great. I was hoping for better.” What

happened is that the high bar of excellence set in your

expectations created a situation ripe for a letdown.

Dan Ariely, professor of psychology and behavioral

economics, advises that we have to be careful in

communicating expectations. If we overhype something

because we’re hoping for positive feedback, we may end

up getting a negative review. His rule of thumb is to go

ahead and send out the high expectations, but don’t

overexaggerate too much. You have to stay in a range

where reality can deliver the results. He suggests

shooting for about a 20 percent stretch of positive

expectations. Th at’s a comfortable target for pulling the

perceiver’s feedback in a positive direction.

Th is notion of raising expectations for positive

feedback is an interesting one to test in everyday

experience. Why not try it? See how well you can manage

expectations of friends and teammates. Maybe this is a

skill that could serve you well in many life and work

situations.

“If you want your friends to experience something as better than it truly is, go for it

and exaggerate. But don’t exaggerate by too much.”

MarkSwallow/iStockphoto

55Th e Perception Process

schema to think about the appropriate steps involved in running a meeting. A self schema

contains information about a person’s own appearance, behavior, and personality. For

instance, people with decisiveness schemas tend to perceive themselves in terms of that

aspect, especially in circumstances calling for leadership.

Person schemas sort people into categories—types or groups, in terms of similar

perceived features. Th ey include prototypes which are pre-set bundles of features

expected to be characteristic of people in certain categories or roles. An example might

be the prototype of a “good teammate” as someone who is intelligent, dependable, and

A prototype is a bundle of

features expected to be

characteristic of people in

certain categories or roles.

Research Insight

Research reported by Merideth Ferguson, Neta Moye, and Ray Friedman links perceptions of interactional
justice during recruitment interviews with effects on long-
term employment relationships. Focusing on issues of
fairness in the workplace, a substantial literature on organ-
izational justice shows that people respond to perceived
fair and unfair treatments in positive and negative ways,
with the links between perceived injustice and negative
behaviors being particularly strong.

Interactional Justice Perceptions Affect Intent to Leave

Source: Merideth Ferguson, Neta Moye, and Ray Friedman, “The Lingering Effects of the Recruitment Experience on the Long-Term
Employment Relationship,” Negotiation and Confl ict Management Research 1 (2008), pp. 246–262.

Perceived
high pressure
negotiating tactics
by recruiters

Less perceived
interactional
justice in job
negotiation

More long-term
intent to leave by
employees

Hypothesis 1 Hypothesis 2

intentions to leave. The second study asked a sample of
recent MBA graduates to report perceptions of interac-
tional justice during their job negotiations; they were
asked six months later to report on their intentions to
leave the new employer. Results from both studies offered
confi rmation for the two hypotheses.

In conclusion, Ferguson et al. state that “the sense of
injustice one feels during a negotiation affects an employ-
ee’s turnover intentions with the hiring organization . . .

negotiations in the recruit-
ment process can set the
tone for the future employ-
ment relationship.” They
recommend future research
to examine how negotiating
tactics like slow responses,
dishonesty, disrespect, and
lack of con cessions infl uence
justice perceptions and later
intent to leave. They also
suggest that perceived injus-

tice in recruiting when jobs are plentiful may lead to ap-
plicants making alternative job choices, whereas such
injustice when jobs are scarce may result in employees
accepting the jobs but harboring intent to leave when
the opportunity permits.

Do the Research What is your experience
with interactional justice in the recruiting process?
Can you design a study to gather the experiences of
your cohorts, friends, and others on campus? How
can your study pinpoint the impact of tactics such as
setting a tight time limit on a job offer?

This research examined fairness perceptions regard-
ing negotiations taking place during the recruitment
process and how these perceptions affected later inten-
tions to leave. Two hypotheses were tested. First, it was
hypothesized that perceived use of negotiation pres-
sure by recruiters would have a negative impact on per-
ceived interactional justice by job applicants. Second, it
was hypothesized that perceived interactional injustice
during recruiting negotiations would have a positive
long-term impact on later intentions to leave by the
newly hired employees.

Two studies were conducted. The fi rst study asked a
sample of sixty-eight university alumni of a business
program about their retrospective perceptions of interac-
tional justice during job negotiations and their current

56 CHAPTER 3 ■ Perception, Attribution, and Learning

hard-working. Once formed, person schemas are stored in long-term memory and

retrieved only when needed for a comparison of how well a person matches the

schema’s features.
4

Interpretation Once your attention has been drawn to certain stimuli and you have
grouped or organized this information, the next step is to uncover the reasons behind the

actions. Even if your attention is called to the same information and you organize it in the

same way your friend does, you may still interpret it diff erently or make diff erent assump-

tions about what you have perceived. As a team leader, for example, you might interpret

compliments from a team member as due to his being eager and enthusiastic about a

task; your friend might interpret the team member’s behavior as an attempt at insincere

fl attery.

Retrieval Each stage of the perception process becomes part of memory. Th is infor-
mation stored in our memory must be retrieved if it is to be used. But all of us at times

have trouble retrieving stored information. Memory decays, so that only some of the

information may be retrieved. Schemas can make it diffi cult for people to remember

things not included in them. If you hold the prototype of a “good worker” as someone

showing lots of eff ort, punctuality, intelligence, articulateness, and decisiveness, you may

emphasize these traits and overlook others when evaluating the performance of a team

member whom you generally consider good.

Perception, Impression Management, and Social Media

Richard Branson, CEO of the Virgin Group, is one of the richest and most famous execu-

tives in the world. He may also be the ultimate master of impression management, the

systematic attempt to behave in ways that will create and maintain desired impressions

in the eyes of others.
5
One of Branson’s early business accomplishments was the success-

ful start-up of Virgin Airlines, now a global competitor to the legacy airlines. In a memoir,

the former head of British Airways, Lord King, said, “If Richard Branson had worn a shirt

and tie instead of a goatee and jumper, I would not have underestimated him.”
6

Don’t you wonder if creating

a casual impression was part of

Branson’s business strategy?

Whether intended or not, the

chances are he’s used this per-

sona to very good advantage in

other business dealings as well.

It’s an example of how much our

impressions can count, both pos-

itive and negative, in how others

perceive us. And it’s not a new

lesson; we’ve all heard it before.

Who hasn’t been told when

heading off to a job interview

“Don’t forget to make a good fi rst

impression”?

Th e fact is that we already

practice a lot of impression man-

agement as a matter of routine in

everyday life. Impression man-

agement is taking place when

we dress, talk, act, and surround

Impression management is

the systematic attempt to

infl uence how others

perceive us.

Don’t let your social media presence get out of control.

Impression management

counts online as well as face to face, and here are some things to help you make

it work for you.

• Ask: How do I want to be viewed? What are my goals in this forum?

• Ask: What am I communicating, or about to communicate, to my “public”

audience?

• Ask: Before I post this item, is it something that I want my family, loved ones,

or a potential employer to see?

• Do: Choose a respectable username.

• Do: Profi le yourself only as you really would like to be known to others; keep

everything consistent.

• Do: View your online persona as a “brand” that you are going to wear for a long

time; make sure your persona and desired brand are a “fi t” and not a “misfi t.”

• Do: Post and participate in an online forum only in ways that meet your goals

for your personal brand; don’t do anything that might damage it.

How to Build Your Personal Brand Through
Impression Management in Social Networks

57Common Perceptual Distortions

ourselves with what reinforces a desirable self-image and helps to convey that image

to other persons. When well done, that can help us to advance in jobs and careers,

form relationships with people we admire, and even create pathways to group mem-

berships. We manage impressions by such activities as associating with the “right”

people, “dressing up” and “dressing down” at the right times, making eye contact when

introduced to someone, doing favors to gain approval, fl attering others to impress

them, taking credit for a favorable event and apologizing for a negative one, and agree-

ing with the opinions of others.
7

One of the most powerful forces in impression management today might be the one

least recognized—how we communicate our presence in the online world of social

media. It might even be the case that this short message deserves to go viral: User beware!

Th e brand you are building through social media may last a lifetime. For tips to remem-

ber, check the sidebar on “How to Build Your Personal Brand Th rough Impression Man-

agement in Social Networks.”

It’s no secret that more and more employers are intensely scouring the Web to learn

what they can about job candidates. What they are gathering are impressions left in the

trails of the candidates’ past social media journeys. One bad photo, one bad nickname, or

one bad comment sends the wrong impression and can kill a great job opportunity. We

are creating impressions of ourselves whenever we are active in the online world. Th e

problem is that those impressions may be fun in social space but harmful in professional

space. Th ere’s a lot to learn about impression management and social media. At a mini-

mum it pays to keep the two social media spaces—the social and the professional—

separated with a good fi rewall between them.

Common Perceptual Distortions
L E A R N I N G

R OA D M A P

STEREOTYPES • HALO EFFECTS • SELECTIVE PERCEPTION

PROJECTION • CONTRAST EFFECTS • SELF-FULFILLING PROPHECIES

Given the complexity of the information streaming toward us from various environ-

ments, we use various means of simplifying and organizing our perceptions. However,

these simplifi cations can cause inaccuracies in our impressions and in the perception

process more generally. Common perceptual distortions trace to the use of stereo-

types, halo eff ects, selective perception, projection, contrast eff ects, and self- fulfi lling

prophecies.

Stereotypes

One of the most common simplifying devices in perception is the stereotype. It

occurs when we identify someone with a group or category, and then use the attri-

butes perceived to be associated with the group or category to describe the individual.

Although this makes matters easier for us by reducing the need to deal with unique

individual characteristics, it is an oversimplifi cation. Because stereotypes obscure

individual diff erences, we can easily end up missing the real individual. For managers

this means not accurately understanding the needs, preferences, and abilities of others

in the work

place.

Some of the most common stereotypes, at work and in life in general, relate to

such factors as gender, age, race, and physical ability. Why are so few top executives

in industry African Americans or Hispanics? Legitimate questions can be asked

about racial and ethnic stereotypes and about the slow progress of minority managers

into America’s corporate mainstream.
8
Why is it that women constitute only a small

A stereotype assigns

attributes commonly

associated with a group

to an individual.

58 CHAPTER 3 ■ Perception, Attribution, and Learning

percentage of American managers sent abroad to work on international business

assignments? A Catalyst study of opportunities for women in global business points

to gender stereotypes that place women at a disadvantage compared to men for these

types of opportunities. The tendency is to assume women lack the ability and/or

willingness to work abroad.
9
Gender stereotypes may cause even everyday behavior

to be misconstrued. For example, consider “He’s talking with co-workers” (Interpreta-

tion: He’s discussing a new deal) and “She’s talking with co-workers” (Interpretation:

She’s gossiping).
10

Ability stereotypes and age stereotypes also exist in the workplace. Physically or

mentally challenged candidates may be overlooked by a recruiter even though they

possess skills that are perfect for the job. A talented older worker may not be pro-

moted because a manager assumes older workers are cautious and tend to avoid

risk.
11

Yet a Conference Board survey of workers age 50 and older reports that 72

percent felt they could take on additional responsibilities, and two-thirds were inter-

ested in further training and development.
12

Then there’s the flip side: Can a young

person be a real leader, even a CEO? Facebook’s founder and CEO Mark Zuckerberg

is still in his twenties. When current CEO Sheryl Sandberg was being recruited from

Google, she admits to having had this thought: “Wow, I’m going to work for a CEO

who is quite young.” “Mark is a great leader,” she now says. After working for him, her

perception has changed. “Mark has a real purity of vision. . . . He brings people along

with him.”
13

Halo Eff ects

A halo eff ect occurs when one attribute of a person or situation is used to develop an

overall impression of that individual or situation. Like stereotypes, these distortions are

more likely to occur in the organization stage of perception. Halo eff ects are common in

our everyday lives. When meeting a new person, for example, a pleasant smile can lead to

a positive fi rst impression of an overall “warm” and “honest” person. Th e result of a halo

eff ect is the same as that associated with a stereotype, however, in that individual diff er-

ences are obscured.

Halo eff ects are particularly important in the performance appraisal process

because they can infl uence a manager’s evaluations of subordinates’ work perfor-

mance. For example, people with good attendance records may be viewed as intelli-

gent and responsible while those with poor attendance records are considered poor

performers. Such conclusions may or may not be valid. It is the manager’s job to try to

get true impressions rather than allowing halo eff ects to result in biased and errone-

ous evaluations.

Selective Perception

Selective perception is the tendency to single out those aspects of a situation,

person, or object that are consistent with one’s needs, values, or attitudes. Its stron-

gest impact occurs in the attention stage of the perceptual process. Th is perceptual

distortion was identifi ed in a classic research study involving executives in a manu-

facturing company.
14

When asked to identify the key problem in a comprehensive

business policy case, each executive selected a problem consistent with his or her

functional area work assignments. Most marketing executives viewed the key prob-

lem area as sales, whereas production people tended to see the problem as one of

production and organization. Th ese diff ering viewpoints would likely aff ect how each

executive would approach the problem; they might also create diffi culties as the

executives tried to work together to improve things.

A halo eff ect uses one

attribute to develop an overall

impression of a person or

situation.

Selective perception is the

tendency to defi ne problems

from one’s own point of view.

59Common Perceptual Distortions

Projection

Projection is the assignment of one’s personal attributes to other individuals. It is espe-

cially likely to occur in the interpretation stage of perception. A classic error is projecting

your needs, values, and views onto others. Th is causes their individual diff erences to get

lost. Such projection errors can be controlled through a high degree of self-awareness and

empathy—the ability to view a situation as others see it.

Suppose, for example, that you enjoy responsibility and achievement in your work.

Suppose, too, that you are the newly appointed leader of a team whose jobs seem dull

and routine. You may move quickly to expand these jobs so that members get

increased satisfaction from more challenging tasks. Basically, you want them to expe-

rience what you value in work. However, this may not be a good decision. Instead of

designing team members’ jobs to best fi t their needs, you have designed their jobs to

best fi t yours.

Projection assigns personal

attributes to other

individuals.

WORTH CONSIDERING …OR BEST AVOIDED?

The consulting fi rm McKinsey & Company reports that women are hired to fi ll more than 50 percent of profes-
sional jobs in America’s large corporations. Then they start
leaking from the career pipeline. They hold 3 percent of CEO
positions, 14 percent of C-suite jobs, and 28 percent of direc-
tor positions on corporate boards. That’s the good news.
Data from the rest of the world are worse. Women hold just
13.7 percent of seats on corporate boards in Europe and
7.1 percent elsewhere in the world.

The low percentage of women serving at the top of cor-
porate hierarchy doesn’t match well with data showing their
presence has a positive performance impact. A Millward
Brown Optimor study found that top global companies
with women on their boards showed 66 percent brand
growth over a 5-year period and those with no female
board members had 6 percent brand growth. An Ernst &
Young study concludes, “The undisputed conclusion from
all the research is that having more women at the top im-
proves fi nancial performance.” The report went on to say
that “Performance increased signifi cantly once a certain
critical mass was attained, namely at least three women on
management committees for an average membership of 10
people.”

Rather than leave the future of female representation on
corporate boards to chance, Europe has started to consider
quotas. Norway, Spain, Iceland, and France have already
passed 40 percent quotas. When legislation requiring all
EU-listed companies to appoint women to 40 percent of
nonexecutive board seats by 2020 was proposed by the
European Commission, it was later pulled for lack of sup-
port. Some member countries say they plan to fi le it again in
the future.

Not Enough Women on Board?
Europe Turns to Quotas

A Heidrick & Struggles survey showed 51 percent of
women directors supporting quotas like those appearing in
Europe. Only 25 percent of men directors voiced similar
support.

Do the Analysis
Is Europe on the right path with quotas to correct gender
disparities in corporate boards? Should this conversation be
limited to women in general? What about women of color?
What about other minorities—male or female? When it
comes to career advancement for women and minorities in
the corporate world, is it time for quotas, or are we better
off waiting for changes to take a natural course?

60 CHAPTER 3 ■ Perception, Attribution, and Learning

Contrast Eff ects

We mentioned earlier how a bright red sports car would stand out from a group of gray

sedans. Th is shows a contrast eff ect in which the meaning or interpretation of something

is arrived at by contrasting it with a recently occurring event or situation. Th is form of

perceptual distortion can occur, say, when a person gives a talk following a strong speaker

or is interviewed for a job following a series of mediocre applicants. A contrast eff ect

occurs when an individual’s characteristics are contrasted with those of others recently

encountered who rank higher or lower on the same

characteristics.

Self-Fulfi lling Prophecies

A fi nal perceptual distortion is the self-fulfi lling prophecy: the tendency to create or

fi nd in another situation or individual that which you expected to fi nd in the fi rst place.

A self-fulfi lling prophecy is sometimes referred to as the “Pygmalion eff ect,” named for a

mythical Greek sculptor who created a statue of his ideal mate and then made her come

to life.
15

Self-fulfi lling prophecies can have both positive and negative outcomes. In eff ect, they

may create in work and personal situations that which we expect to fi nd. Suppose you

assume that team members prefer to satisfy most of their needs outside the work setting

and want only minimal involvement with their jobs. Consequently, you assign simple,

A contrast eff ect occurs

when the meaning of

something that takes place is

based on a contrast with

another recent event or

situation.

A self-fulfi lling prophecy

is creating or fi nding in a

situation that which you

expected to fi nd in the fi rst

place.

CHECKING ETHICS IN OB

Workers Report
Views on Ethical
Workplace Conduct
These data on ethical workplace conduct are from a
survey conducted for Deloitte & Touche USA.

• 42 percent of workers say the behavior of their manag-
ers is a major infl uence on an ethical workplace.

• Most common unethical acts by managers and supervi-
sors include verbal, sexual, and racial harassment, misuse
of company property, and giving preferential treatment.

• Most workers consider it unacceptable to steal from
an employer, cheat on expense reports, take credit for
another’s accomplishments, and lie on time sheets.

• Most workers consider it acceptable to ask a work
colleague for a personal favor, take sick days when not
ill, and use company technology for personal affairs.

• Top reasons for unethical behavior are lack of personal
integrity (80 percent) and lack of job satisfaction
(60 percent).

• Among workers, 91 percent are more likely to behave
ethically when they have work–life balance; 30 percent
say they suffer from poor work–life balance.

Whose Ethics Count? Shouldn’t an individual be accountable for her or his own ethical reasoning and
analysis? How and why is it that the ethics practices of others, including managers, infl uence our ethics behaviors?
What can be done to strengthen people’s confi dence in their own ethical frameworks so that even bad management
won’t result in unethical practices?

Izvorinka Jankovic/iStockphoto

61Perception, Attribution, and Social Learning

highly structured tasks designed to require little involvement. Can you predict what

response they will have to this situation? In fact, they may show the very same lack of

commitment you assumed they would have in the fi rst place. In this case your initial

expectations get confi rmed as a negative self-fulfi lling prophecy.

Self-fulfi lling prophecies can also have a positive side. In a study of army tank

crews, one set of tank commanders was told that some members of their assigned

crews had exceptional abilities whereas others were only average. However, the crew

members had been assigned randomly so that the two test groups were equal in abil-

ity. Th e commanders later reported that the so-called “exceptional” crew members

performed better than the “average” ones. Th e study also revealed that the command-

ers had given more attention and praise to the crew members for whom they had the

higher expectations.
16

Don’t you wonder what might happen with students and work-

ers in general if teachers and managers adopted more uniformly positive and optimis-

tic approaches toward them?

Perception, Attribution,
and Social Learning

L E A R N I N G
R OA D M A P

IMPORTANCE OF ATTRIBUTIONS • ATTRIBUTION ERRORS

ATTRIBUTION AND SOCIAL LEARNING

One of the ways in which perception exerts its infl uence on behavior is through

attribution. Th is is the process of developing explanations or assigning perceived causes

for events. It is natural for people to try to explain what they observe and what happens

to them. What happens when you perceive that someone in a job or student group isn’t

performing up to expectations? How do you explain this? And, depending on the expla-

nation, what do you do to try and correct things?

Importance of Attributions

Attribution theory helps us understand how people perceive the causes of events,

assess responsibility for outcomes, and evaluate the personal qualities of the people

involved.
17

It is especially concerned with whether the assumption is that an individ-

ual’s behavior, such as poor performance, has been internally or externally caused.

Internal causes are believed to be under an individual’s control—you believe Jake’s

performance is poor because he is lazy. External causes are seen as coming from

outside a person—you believe Kellie’s performance is poor because the software she’s

using is out of date.

According to attribution theory, three factors infl uence this internal or external

determination of causality: distinctiveness, consensus, and consistency. Distinctiveness

considers how consistent a person’s behavior is across diff erent situations. If Jake’s

performance is typically low, regardless of the technology with which he is working, we

tend to assign the poor performance to an internal attribution—there’s something

wrong with Jake. If the poor performance is unusual, we tend to assign an external

cause to explain it—there’s something happening in the work context. Consensus takes

into account how likely all those facing a similar situation are to respond in the same

way. If all the people using the same technology as Jake perform poorly, we tend to

assign his performance problem to an external attribution. If others do not perform

poorly, we attribute Jake’s poor performance to internal causation. Consistency con-

cerns whether an individual responds the same way across time. If Jake performs

poorly over a sustained period of time, we tend to give the poor performance an

Attribution is the process

of creating explanations

for events.

62 CHAPTER 3 ■ Perception, Attribution, and Learning

internal attribution. If his low performance is an isolated incident, we may well attri-

bute it to an external cause.

Attribution Errors

People often fall prey to perception errors when making attributions about what caused

certain events.
18

Look, for example, at the data reported in Figure 3.2. When executives

were asked to attribute causes of poor performance among their subordinates, they

most often blamed internal defi ciencies of the individual—lack of ability and eff ort,

rather than external defi ciencies in the situation—lack of support. Th is demonstrates

what is known as fundamental attribution error—the tendency to underestimate the

infl uence of situational factors and to overestimate the infl uence of personal factors

when evaluating someone else’s behavior. When asked to identify causes of their own

poor performance, however, the executives mostly cited lack of support—an external,

or situational, defi ciency. Th is demonstrates self-serving bias—the tendency to deny

personal responsibility for performance problems but to accept personal responsibility

for performance success.

Th e managerial implications of attribution errors trace back to the fact that percep-

tions infl uence

behavior.

For example, a team leader who believes that members are

not performing well and perceives the reason to be an internal lack of eff ort is likely to

respond with attempts to “motivate” them to work harder. Th e possibility of changing

external, situational factors that may remove job constraints and provide better organi-

zational support may be largely ignored. Th is oversight could sacrifi ce major perfor-

mance gains for the team.

Attribution and Social Learning

Perception and attribution are important components in social learning theory, which

describes how learning takes place through the reciprocal interactions among people,

Fundamental attribution

error overestimates internal

factors and underestimates

external factors as infl uences

on someone’s behavior.

Self-serving bias

underestimates internal

factors and overestimates

external factors as infl uences
on someone’s behavior.

Social learning theory

describes how learning

occurs through interactions

among people, behavior, and

environment.

FIGURE 3.2 Attribution
errors by executives when
explaining poor performance
by others and themselves.

Cause of Poor
Performance

by Themselves

Few
Few
Many

Most Frequent
Attribution

Lack of ability
Lack of effort
Lack of support

Cause of Poor
Performance by

Others

Many
Many
Few

Bias against Black Leaders
Found on the Football Field
Are black leaders at a disadvantage when leadership

success is evaluated? The answer is “yes” according

to research reported in the Academy of Management

Journal.

Scholars Andrew M. Carton and Ashleigh Shelby

Rosette studied how the performance of football

quarterbacks was reported in the news. They found

that successful performances by black quarterbacks

were attributed in news articles less often to the

players’ competence, such as

“making decisions under

pressure,” and more often to

factors that made up for

incompetence, such as having

“the speed to get away.” The

researchers expressed concern

that black leaders may suffer

from poor career advance-

ment because of biased

evaluations. Sportschrome/NewsCom

63Perception, Attribution, and Social Learning

behavior, and environment. According to the work of Albert Bandura, an individual uses

modeling or vicarious learning to acquire behavior by observing and imitating others.
20

a work situation, the model may be a higher manager or co-worker who demonstrates

desired behaviors. Mentors or senior workers who befriend younger and more inexperi-

enced protégés can also be important models. Indeed, some have argued that a shortage

of mentors for women in senior management has been a major constraint to their pro-

gression up the career ladder.
21

The symbolic processes shown in Figure 3.3 are important in social learning.

Words and symbols used by managers and others in the workplace help communi-

cate values, beliefs, and goals and thus serve as guides to an individual’s behavior.

For example, a “thumbs up” or other signal from the boss lets you know your behav-

ior is appropriate. At the same time, the person’s self-control is important in influ-

encing his or her own behavior. And self-efficacy—the person’s belief that he or she

can perform adequately in a situation—is an important part of such self-control.

Closely associated with the concept of self-efficacy are such terms as confidence,

competence, and ability.
22

People with high self-effi cacy believe that they have the necessary abilities for a

given job, that they are capable of

the eff ort required, and that no

outside events will hinder them

from attaining their desired

performance level.
23

In contrast,

people with low self-effi cacy

believe that no matter how hard

they try, they cannot manage

their environment well enough

to be successful. If you feel high

self-effi cacy as a student, a low

grade on one test is likely to

encourage you to study harder,

talk to the instructor, or do other

things to enable you to do well

the next time. In contrast, a

person low in self-effi cacy would

probably drop the course or give

up studying. Of course, even peo-

ple who are high in self-effi cacy

do not control their environment

entirely.

FIGURE 3.3 Simplifi ed model of social learning.

Symbolic Processes
Verbal/mental images
help guide behavior

Self-control
Self-efficacy controls
behavior

Modeling behavior
acquired by observing
and imitating others

Behavior Environment

Scholars generally recognize the following four ways of building or enhancing

our self-effi cacy:

1. Enactive mastery—gaining confi dence through positive experience. Th e

more you work at a task, so to speak, the more your experience builds and

the more confi dent you become at doing it.

2. Vicarious modeling—gaining confi dence by observing others. When someone

else is good at a task and we are able to observe how they do it, we gain confi –

dence in being able to do it ourselves.

3. Verbal persuasion—gaining confidence from someone telling us or

encouraging us that we can perform the task. Hearing others praise our

efforts and link those efforts with performance successes is often very

motivational.

4. Emotional arousal—gaining confi dence when we are highly stimulated

or energized to perform well in a situation. A good analogy for arousal is

how athletes get “psyched up” and highly motivated to perform in key

competitions.

Four Ways to Build or Enhance Self-Effi cacy

64 CHAPTER 3 ■ Perception, Attribution, and Learning

Learning by Reinforcement
L E A R N I N G

R OA D M A P

CLASSICAL CONDITIONING • OPERANT CONDITIONING AND THE LAW OF EFFECT

POSITIVE REINFORCEMENT • NEGATIVE REINFORCEMENT

PUNISHMENT • EXTINCTION • REINFORCEMENT PROS AND CONS

When it comes to learning, the concept of reinforcement is very important in OB. It

has a very specific meaning that has its origin in some classic studies in psychology.
24

Reinforcement is the administration of a consequence as a result of a behavior.

Managing reinforcement properly can change the direction, level, and persistence of

an individual’s behavior. This idea is best understood through the concepts of condi-

tioning and reinforcement that you may have already learned in a basic psychology

course.

Classical Conditioning

Ivan Pavlov described classical conditioning as a form of learning through association

that involves the manipulation of stimuli to infl uence behavior. Th e Russian psychologist

“taught” dogs to salivate at the sound of a bell by ringing the bell when feeding the dogs.

Th e sight of the food naturally caused the dogs to salivate. Th e dogs “learned” to associate

the bell ringing with the presentation of food and to salivate at the ringing of the bell

alone.

Th e key here is to understand stimulus and conditioned stimulus. A stimulus is

something that incites action and draws forth a response, such as food for the dogs.

Th e trick is to associate one neutral stimulus—the bell ringing—with another stimulus

that already aff ects behavior—the food. Th e once-neutral stimulus is called a condi-

tioned stimulus when it aff ects behavior in the same way as the initial stimulus. Such

learning through association is so common in organizations that it is often ignored

until it causes considerable confusion.

Take a look at the following fi gure for an example of how classical conditioning

might occur in the workplace. Here, the boss’s smiling has become a conditioned

stimulus because of its association with his criticisms. Th e employee has learned to feel

nervous and grit her teeth whenever the boss smiles.

Classical Conditioning Stimulus Behavior

Learning occurs through
conditioned stimuli

A person sees the boss smile
and hears boss’s criticisms

feels nervous
grits teeth

The person later
sees the boss smile

feels nervous
grits teeth

Operant Conditioning and the Law of Eff ect

Th e well-known psychologist B. F. Skinner extended the applications of learning by rein-

forcement to include more than just conditioned stimulus and response behavior.
25

focused on operant conditioning as the process of controlling behavior by manipulat-

ing its consequences. You may think of operant conditioning as learning by reinforce-

ment. In a work setting the goal is to use reinforcement principles to systematically

reinforce desirable behavior and discourage

undesirable behavior.

Operant conditioning occurs by linking behavior and consequences. Th e following

fi gure uses the example of an agreement with the boss to work overtime. When the

employee actually does work overtime, this is the behavior. Th e consequence in the

example is receiving the boss’s praise. In operant conditioning, this consequence

Reinforcement is the

delivery of a consequence

as a result of behavior.

Classical conditioning

involves learning to display a

behavior through its

association with a stimulus.

Operant conditioning is

the control of behavior

by manipulating its

consequences.

65Learning by Reinforcement

strengthens the behavior and makes it more likely to reoccur when the boss next

requests overtime work.

Operant Conditioning Behavior Consequence

Learning occurs through
consequences of behavior

A person
works overtime

gets boss’s
praise

The person later
works overtime again

Th e basis for operant conditioning rests in E. L. Th orndike’s law of eff ect.
27

It is

simple but powerful: Behavior that results in a pleasant outcome is likely to be

repeated, whereas behavior that results in an unpleasant outcome is not likely to be

repeated. Th e implications of this law are rather straightforward. If you want more of

a behavior—say the willingness of someone to stay and work overtime when things

are rushed—you must make sure the consequences of performing the desired behav-

ior are positive for the individual.

Th e consequences that reinforce behavior under the Law of Eff ect are extrinsic

rewards—positively valued work outcomes given to the individual by another

person.

Some of these are contrived rewards like pay increases and cash bonuses. Th ese rewards have

direct costs and budgetary implications. Other outcomes could be natural rewards such as

verbal praise and recognition. Th ese have no real cost other than the time and eff ort

expended to deliver them.

Th e use of extrinsic rewards to systematically reinforce desirable work behavior

and to discourage unwanted work behavior is known as organizational behavior

modifi cation, or OB Mod for short. It involves the use of four basic reinforcement

strategies: positive reinforcement, negative reinforcement (or avoidance), punish-

ment, and extinction.
29

Positive Reinforcement

B. F. Skinner and his followers place great emphasis on the power of positive

reinforcement in operant conditioning. Th is is the administration of positive conse-

quences that tend to increase the likelihood that desirable behavior will be repeated. An

example is when a team leader nods to a team member to express approval after she

makes a useful comment during a sales meeting. For example, this increases the likeli-

hood of future useful comments from the team member, something that might not hap-

pen if the useful comments went unrecognized when fi rst off ered in the meeting.

It’s easy to waste rewards by giving them in ways that have little impact on future

desired behaviors. In order to have maximum reinforcement value, a reward should be

delivered only when a desired behavior—such as giving constructive comments in a

meeting—is exhibited. Th at is, the reward must be contingent on the desired behavior.

Th is principle is known as the law of contingent reinforcement. In addition, the reward

should be given as soon as possible after the desired behavior. Th is is known as the law

of immediate reinforcement.
30

If a team leader waits for the annual performance review

to praise a team member for providing constructive comments during meetings, the law

of immediate reinforcement would be violated.

Shaping Th e power of positive reinforcement can be mobilized through a process
known as shaping: the creation of a new behavior by the positive reinforcement of suc-

cessive approximations to it. For example, new machine operators in the Ford Motor

casting operation in Ohio must learn a complex series of tasks in pouring molten metal

Th e law of eff ect is that

behavior followed by pleasant

consequences is likely to be

repeated; behavior followed

by unpleasant consequences

is not.

Organizational behavior

modifi cation is the use

of extrinsic rewards to

systematically reinforce

desirable work behavior and

discourage undesirable

behavior.

Th e law of contingent

reinforcement states that a

reward should only be given

when the desired behavior

occurs.

Th e law of immediate

reinforcement states that a

reward should be given as

soon as possible after the

desired behavior occurs.

Shaping is positive

reinforcement of successive

approximations to the desired

behavior.

Positive reinforcement

strengthens a behavior

by making a desirable

consequence contingent on

its occurrence.

Extrinsic rewards are

positively valued work

outcomes that are given to

the individual by some other

person.
Copyright © 2014 John Wiley & Sons, Inc.

66 CHAPTER 3 ■ Perception, Attribution, and Learning

into castings in order to avoid gaps, overfi lls, or cracks.
31

Th e molds are fi lled in a three-

step process, with each step progressively more diffi cult than its predecessor. Astute

master craftspersons fi rst show newcomers how to pour as the fi rst step and give praise

based on what they did right. As the apprentices gain experience, they are given praise

only when all of the elements of the fi rst step are completed successfully. Once the

apprentices have mastered the fi rst step, they move to the second. Reinforcement is

given only when the entire fi rst step and an aspect of the second step are completed suc-

cessfully. Over time, apprentices learn all three steps and are given contingent positive

Richard Branson Leads with Personality
and Positive Reinforcement

Sir Richard Branson, well-known founder of Virgin Group, is a believer in positive reinforcement. “For
the people who work for you or with you, you must lavish
praise on them at all times,” he says. “If a fl ower is
watered, it fl our ishes. If not it shrivels up and dies.” And
besides, he goes on to add, “It’s much more fun looking
for the best in people.”

Virgin Group is a business conglomerate employing
many thousands of people around the globe. It even
holds a space venture: Virgin Galactic. It’s all very creative
and ambitious—but that’s Branson. “I love to learn things
I know little about,” he says.

Yet if you bump into Branson on the street you might
be surprised. He’s casual, he’s smiling, and he’s fun; he’s
also considered brilliant when it comes to business and
leadership. His goal is to build Virgin into “the most
respected brand in the world.”

As the man behind the Virgin brand, Branson is de-
scribed as “fl amboyant,” something that he doesn’t deny
and also considers a major business advantage that keeps
him and his ventures in the public eye.

About leadership Branson says, “Having a personality
of caring about people is important. . . . You can’t be a
good leader unless you generally like people. That is how
you bring out the best in them.” He claims his own style
was shaped by his family and childhood. At age 10 his
mother put him on a 300-mile bike ride to build character
and endurance. At 16, he started a student magazine. By
the age of 22, he was launching Virgin record stores. And
by the time he was 30, Virgin Group was running at high
speed.

As for himself, Branson says he’ll probably never retire.
Now known as Sir Richard after being knighted, he enjoys
Virgin today “as a way of life.” But he also says that “In
the next stage of my life I want to use our business skills
to tackle social issues around the world. . . . Malaria in
Africa kills four million people a year. AIDS kills even
more. . . . I don’t want to waste this fabulous situation in
which I’ve found myself.”

What’s the Lesson Here?
Sir Richard obviously has confi dence in himself as both
a person and a leader. How much of his business and
leadership success comes from management of his
public impression? Is this something we might all use
to advantage? And when he says “you must lavish
praise all the time” on the people who work for you, is
he giving us an example of the law of effect in action?
Finally, Branson seems to have moved beyond the
quest for personal business success; he’s now talking
about real social impact. Is that a natural progression
for successful entrepreneurs and business executives?

Rosie Greenway/Getty Images, Inc.

IN YOU
FINDING THE LEADER

67Learning by Reinforcement

rewards immediately upon completing a casting that has no cracks or gaps. In this way

behavior is shaped gradually rather than changed all at once.

Scheduling Positive Reinforcement Positive reinforcement can be given on
either continuous or intermittent schedules. Continuous reinforcement administers a

reward each time a desired behavior occurs, whereas intermittent reinforcement

rewards behavior only periodically. In general, continuous reinforcement draws forth a

desired behavior more quickly than does intermittent reinforcement. However, it is easily

extinguished when reinforcement is no longer present. Behavior acquired under inter-

mittent reinforcement is more resistant to extinction and lasts longer upon the discon-

tinuance of reinforcement. Th is is why shaping typically begins with a continuous rein-

forcement schedule and then gradually shifts to an intermittent one.

Figure 3.4 shows that intermittent reinforcement can be given according to fi xed or

variable schedules. Variable schedules typically result in more consistent patterns of

desired behavior than do fi xed reinforcement schedules. Fixed-interval schedules provide

Continuous reinforcement

administers a reward each time

a desired behavior occurs.

Intermittent reinforcement

rewards behavior only

periodically.

OB IN POPULAR CULTURE

Positive
Reinforcement and
Big Bang Theory
Learning is an important part of an individual’s devel-
opment. In the workplace, reinforcement can be used
to help employees learn proper behavior. Through the
principle of operant conditioning, reinforcement uses
consequences to help mold the behavior of others.

In one episode of “The Big Bang Theory,” Leonard,
Penny, and Sheldon are watching anime on television.
Penny is bored with a show she does not understand
and begins to tell a story about a high school class-
mate named Anna Mae. Sheldon uses chocolate to
get her to stop talking. Later, when Penny’s cell phone
rings, Sheldon again uses chocolate to get Penny to
take the call in the hallway. Leonard discovers the
tactic and forbids Sheldon from experimenting with
Penny. Sheldon then sprays Leonard with a water
bottle (punishment).

The episode is hilarious yet serious. It demonstrates
how easily behavior can be infl uenced through the
proper application of operant conditioning techniques.
However, it’s important to remember that what works at
one point in time may not work at another. If Sheldon
continues to give Penny chocolates, for example, will
she eventually lose her desire for them and the
reinforcement will no longer be effective?

Get to Know Yourself Better Take Assessment 12, The Downside of Punishment, in the OB Skills
Workbook. Have you ever experienced punishment as a student or an employee? What was your reaction? Have
you ever seen a boss punish an employee in front of co-workers or customers? Is this an effective way to change
behavior? If you were a teacher, how would you handle a behavior problem with a student—such as unwanted text
messaging in class?

Cliff Lipson/CBS/Getty Images

68 CHAPTER 3 ■ Perception, Attribution, and Learning

rewards at the fi rst appearance of a behavior after a given time has elapsed. Fixed-ratio

schedules result in a reward each time a certain number of the behaviors have occurred.

A variable-interval schedule rewards behavior at random times, whereas a variable-ratio

schedule rewards behavior after a random number of occurrences.

Negative Reinforcement

A second reinforcement strategy in operant conditioning is negative reinforcement or

avoidance learning. It uses the withdrawal of negative consequences to increase the like-

lihood of desirable behavior being repeated. An example might be the manager regularly

nags a worker about being late for work and then doesn’t nag when the worker next

shows up on time. Th e term negative reinforcement comes from this withdrawal of the

negative consequences. Th e strategy is also called avoidance learning because its intent

is for the person to avoid the negative consequence by performing the desired behavior.

Th ink of it this way. Even when the streets are deserted, we still stop at red lights to avoid

getting a traffi c ticket.

Punishment

Unlike positive reinforcement and negative reinforcement which are intended to encour-

age desired behavior, punishment intends to discourage undesirable behavior. It is the

administration of negative consequences or the withdrawal of positive consequences to

reduce the likelihood of a behavior being

repeated.

Evidence does show that punishment administered for poor performance can lead to

better performance. Yet, when punishment is perceived as arbitrary and capricious, it

leads to low satisfaction and low performance.
32

Th e lesson here and highlighted in the

“How to Make Positive Reinforcement and Punishment Work for You” sidebar is that

punishment can be handled poorly, or it can be handled well. If it is necessary to use

punishment as a reinforcement strategy, be sure to do it well.

Negative reinforcement

strengthens a behavior by

making the avoidance of an

undesirable consequence

contingent on its occurrence.

Punishment discourages a

behavior by making an

unpleasant consequence

contingent on its occurrence.

FIGURE 3.4 Alternative ways to schedule positive reinforcement.

Fixed interval

Reinforcer given after a given
time
Weekly or monthly paychecks
Regularly scheduled exams

Fixed ratio

Reinforcer given after a given
number of behavior
occurrences
Piece-rate pay
Commissioned salespeople:
certain amount is given for
each dollar of sales

Variable interval

Reinforcer given at random times
Occasional praise by boss on
unscheduled visits
Unspecified number of pop
quizzes to students

Variable ratio

Reinforcer given after a random
number of behavior
occurrences
Random quality checks with
praise for zero defects
Commissioned salespeople:
a varying number of calls are
required to obtain a given sale

Interval Ratio

Fixed

Variable

Time-based Behavior occurrence–based

69Study Guide

It’s also worth noting that punishment may be

off set by positive reinforcement received from

another source. Take the case of someone being

positively reinforced by peers at the same time as

he or she is receiving punishment from a boss,

parent, or teacher. Sometimes the positive value of

peer support is so great that the individual chooses

to put up with punishment and continues the bad

behavior. As many times as a child may be verbally

reprimanded by a teacher for playing jokes, for

example, the “grins” off ered by classmates may

keep the jokes fl owing in the future.

Extinction

Th e fi nal reinforcement strategy is extinction—the

withdrawal of reinforcing consequences in order to

weaken undesirable behavior. For example, Enya is

often late for work and co-workers provide positive

reinforcement by covering for her. Th e manager

instructs Enya’s co-workers to stop covering, thus

withdrawing the positive consequences of her tardiness. Th is is a use of extinction to try

and get rid of an undesirable behavior. Still, even though a successful extinction strategy

decreases the frequency of or weakens behavior, the behavior is not “unlearned.” It simply is

not exhibited and will reappear if reinforced again.

Reinforcement Pros and Cons

Th e eff ective use of the four reinforcement strategies presented in these pages can help in

the management of human behavior at work, but their use is not without criticism.
33

A major criticism is that using reinforcement to infl uence human behavior is demeaning

and dehumanizing.
34

Another criticism is that it becomes too easy for managers to abuse

the power of their positions when they exert this type of external control over individual

behavior.

Advocates of the reinforcement approach attack its critics head on. Th ey agree that

behavior modifi cation involves the control of behavior, but they also argue that such con-

trol is an irrevocable part of every manager’s job. Th e real question, they say, is how to

ensure that the reinforcement strategies are done in positive and constructive ways.
35

Extinction discourages a

behavior by making the

removal of a desirable

consequence contingent on
its occurrence.
Positive Reinforcement

• Clearly identify desired work behaviors.

• Maintain a diverse inventory of rewards.

• Inform everyone what must be done to get rewards.

• Recognize individual diff erences when allocating rewards.

• Follow the laws of immediate and contingent reinforcement.

Punishment

• Tell the person what is being done wrong.

• Tell the person what is being done right.

• Make sure the punishment matches the behavior.

• Administer the punishment in private.

• Follow the laws of immediate and contingent reinforcement.

How to Make Positive Reinforcement
and Punishment Work for You

Key Questions and Answers
What is perception, and why is it important?

• Individuals use the perception process to select, organize, interpret, and retrieve infor-

mation from the world around them.

• Perception acts as a fi lter through which all communication passes as it travels from

one person to the next.

Study Guide3

70 CHAPTER 3 ■ Perception, Attribution, and Learning

• Because people tend to perceive things diff erently, the same situation may be interpreted

and responded to diff erently by diff erent people.

• Factors infl uencing perceptions include characteristics of the perceiver, the setting,

and the perceived.

What are the common perceptual distortions?

• Stereotypes occur when a person is identifi ed with a category and is assumed to display

characteristics otherwise associated with members of that category.

• Halo eff ects occur when one attribute of a person or situation is used to develop an

overall impression of the person or situation.

• Selective perception is the tendency to single out for attention those aspects of a situa-

tion or person that reinforce or emerge and are consistent with existing beliefs, values,

and needs.

• Projection involves the assignment of personal attributes to other individuals.

• Contrast effects occur when an individual’s characteristics are contrasted

with those of others recently encountered who rank higher or lower on the same

characteristics.

What is the link between perception, attribution,

and social learning?

• Attribution theory addresses tendencies to view events or behaviors as primarily the

results of external causes or internal causes.

• Th ree factors that infl uence the attribution of external or internal causation are distinc-

tiveness, consensus, and consistency.

• Fundamental attribution error occurs when we blame others for performance prob-

lems while excluding possible external causes.

• Self-serving bias occurs when, in judging our own performance, we take personal credit

for successes and blame failures on external factors.

• Social learning theory links perception and attribution by recognizing how learning

is achieved through the reciprocal interactions among people, behavior, and

environment.

What is involved in learning by reinforcement?

• Reinforcement theory recognizes that behavior is infl uenced by environmental

con sequences.

• Th e law of eff ect states that behavior followed by a pleasant consequence is likely to be

repeated; behavior followed by an unpleasant consequence is unlikely to be repeated.

• Positive reinforcement is the administration of positive consequences that tend to

increase the likelihood of a person’s repeating a behavior in similar settings.

• Positive reinforcement should be contingent and immediate, and it can be scheduled

continuously or intermittently depending on resources and desired outcomes.

• Negative reinforcement, or avoidance learning, is used to encourage desirable behav-

ior through the withdrawal of negative consequences for previously undesirable

behavior.

• Punishment is the administration of negative consequences or the withdrawal of

positive consequences to reduce the likelihood of an undesirable behavior being

repeated.

• Extinction is the withdrawal of reinforcing consequences to weaken or eliminate an

undesirable behavior.
Copyright © 2014 John Wiley & Sons, Inc.

71Self-Test 3

Self-Test 3
Multiple Choice

1. Perception is the process by which people ____________ and interpret information.

(a) generate (b) retrieve

2. When an individual attends to only a small portion of the vast information available

in the environment, this tendency in the perception process is called

____________.

(a) interpretation (b) self scripting

3. Self-serving bias is a form of attribution error that involves ____________.

(a) blaming yourself for problems caused by others

(b) blaming the environment for problems you caused

(d) low self-effi cacy

4. In fundamental attribution error, the infl uence of ____________ as causes of a

problem are ___________.

(a) situational factors, overestimated

(b) personal factors, underestimated

(d) situational factors, underestimated

5. If a new team leader changes tasks for persons on his or her work team mainly

“because I would prefer to work the new way rather than the old,” she may be com-

mitting a perceptual error known as ____________.

(a) halo eff ect (b) stereotype

Terms to Know
Attribution (p. 61)

Classical conditioning

(p. 64)

Continuous reinforcement

(p. 67)

Contrast eff ect (p. 60)

Extinction (p. 69)

Extrinsic rewards

(p. 65)

Fundamental attribution

error

(p. 62)

Halo eff ect (p. 58)

Impression management

(p. 56)

Intermittent reinforcement
(p. 67)

Law of contingent

reinforcement (p. 65)

Law of eff ect (p. 65)

Law of immediate

reinforcement (p. 65)
Negative reinforcement

(p. 68)

Operant conditioning (p. 64)

Organizational behavior

modifi cation (p. 65)

Perception (p. 52)

Positive reinforcement
(p. 65)

Projection (p. 59)

Prototype (p. 55)

Punishment (p. 68)

Reinforcement (p. 64)

Schemas (p. 54)

Selective perception (p. 58)

Selective screening (p. 53)

Self-fulfi lling prophecy

(p. 60)

Self-serving bias (p. 62)

Shaping (p. 65)

Social learning theory

(p. 62)

Stereotype (p. 57)

72 CHAPTER 3 ■ Perception, Attribution, and Learning

6. Use of special dress, manners, gestures, and vocabulary words when meeting a

prospective employer in a job interview are all examples of how people use

____________.

(a) projection

(b) selective perception

(d) self-serving bias

7. Th e perceptual tendency known as a/an ____________ is associated with the

“Pygmalion eff ect” and refers to fi nding or creating in a situation that which was

originally expected.

(a) self-effi cacy (b) projection

8. If a manager allows one characteristic of a person, say a pleasant personality, to

bias performance ratings of that individual overall, the manager is falling prey to a

perceptual distortion known as ____________.

(a) halo eff ect (b) stereotype
(c) selective perception (d) projection

9. Th e underlying premise of reinforcement theory is that ____________.

(a) behavior is a function of environment

(b) motivation comes from positive expectancy

(d) rewards considered unfair are de-motivators

10. Th e law of ____________ states that behavior followed by a positive consequence is

likely to be repeated, whereas behavior followed by an undesirable consequence is

not likely to be repeated.

(a) reinforcement (b) contingency

11. ____________ is a positive reinforcement strategy that rewards successive approx-

imations to a desirable behavior.

(a) Extinction (b) Negative reinforcement

12. B. F. Skinner would argue that “getting a paycheck on Friday” reinforces a person for

coming to work on Friday but would not reinforce the person for doing an extra-

ordinary job on Tuesday. Th is is because the Friday paycheck fails the law of

____________ reinforcement.

(a) negative (b) continuous

13. Th e purpose of negative reinforcement as an operant conditioning technique is to

____________.

(a) punish bad behavior

(b) discourage bad behavior

(d) off set the eff ects of shaping

Steps to Further Learning 3

14. Punishment ____________.

(a) may be off set by positive reinforcement from another source

(b) generally is the most eff ective kind of reinforcement

(d) should never be directly linked with its cause.

15. A defi ning characteristic of social learning theory is that it ____________.

(a) recognizes the existence of vicarious learning

(b) is not concerned with extrinsic rewards

(d) avoids any interest in self-effi cacy

Short Response

16. Draw and briefl y discuss a model showing the important stages of the perception

process.

17. Select two perceptual distortions, briefl y defi ne them, and show how they can lead

to poor decisions by managers.

18. Why is the law of eff ect useful in management?

19. Explain how the reinforcement learning and social learning approaches are similar

and dissimilar to one another.

Applications Essay

20. One of your friends has just been appointed as leader of a work team. Th is is her fi rst

leadership assignment and she has recently heard a little about attribution theory.

She has asked you to explain it to her in more detail, focusing on its possible useful-

ness and risks in managing the team. What will you tell her?

Case for
Critical Thinking

Team and
Experiential Exercises

Self-Assessment
Portfolio

• The Jim Donovan Case • How We View Differences
• Alligator River Story
• Cultural Cues
• Downside of Punishment

• Turbulence Tolerance Test
• Global Readiness Index
• Intolerance for Ambiguity

Steps to Further Learning 3

Top Choices from Th e OB Skills Workbook

Th ese learning activities from Th e OB Skills Workbook found at the back of the book

are suggested for Chapter 3.

d
ilo

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D

im
ie

r/
Ph

o
to

A
lto

/C
o

rb
is

Nothing beats feeling good

Introducing

Organizational

Behavior

■ Bringing OB to LIFE
BUILDING SKILLS TO SUCCEED IN A COLLABORATION ECONOMY

■ Worth Considering . . . or Best Avoided?
TROUBLE BALANCING WORK AND HOME? HOME WORKING MAY BE THE ANSWER

■ Checking Ethics in OB
IS MANAGEMENT A PROFESSION?

■ Finding the Leader in You
MICHELLE GREENFIELD LEADS WITH A SUSTAINABILITY VISION

■ OB in Popular Culture
MORAL MANAGEMENT AND JOHN Q

■

Research Insight

WOMEN MIGHT MAKE BETTER LEADERS

The Key Point

■ What Is

Organizational

Behavior, and Why

Is It Important?

■ How Do We

Learn about

Organizational

Behavior?

■ What Is the Context

of Organizational

Behavior?

■ What Are the

Challenges of

Management in

Organizations?

■ What Are the
Challenges of

Leadership in

Organizations?

Chapter at
a Glance

What’s Inside

People in all of their rich diversity are the basic building blocks of organizations.

Everyone deserves to be respected at work and to be satisfi ed with their jobs

and accomplishments. Th e fi eld of organizational behavior off ers many insights

into managing individuals and teams for high performance in today’s complex

workplace. ■

4 CHAPTER 1 ■ Introducing Organizational Behavior

Introducing Organizational
Behavior

L E A R N I N G

R O A D M A P

WHAT IS ORGANIZATIONAL BEHAVIOR?

IMPORTANCE OF ORGANIZATIONAL BEHAVIOR

What Is Organizational Behavior?

If you pause to consider the vast eff ects of our recent economic and social turmoil,

there shouldn’t be any doubt that organizations and their members face huge chal-

lenges. Talk to friends and follow the news headlines. Preferred jobs are still hard to

come by for new college graduates, and unemployment remains high, especially for

candidates without strong career skills. Th ose with jobs often struggle to support a

desired lifestyle while balancing confl icting demands of work and family responsibili-

ties. Like it or not, this is your world. It’s the one you’ll have to master for both career

and personal success.

In this challenging era, the body of knowledge we call organizational behavior off ers

many insights of great value. Organizational behavior (OB) is the study of human

behavior in organizations. It is an academic discipline devoted to understanding individ-

uals, teams, interpersonal processes, and organizational dynamics. Learning about OB

can help you build solid job skills and expand your potential for career success in the

dynamic, shifting, and complex workplaces of today . . . and tomorrow.

Importance of Organizational Behavior

Th ink OB and great jobs! Th ink OB and career success! Th ink OB and overall life satisfac-

tion! Don’t think—OB and another course completed for my degree!

Th e real importance of OB boils down to how it helps you develop the skills needed for

a successful career in our ever-changing world. Th is is a time in which the normal com-

plexities of human behavior in organizations are ramped up by an environment of con-

stant change and the growing infl uence of social technology. Take the OB relevance test.

How prepared are you to excel in jobs with fashion-forward titles like these?
1

Relationship champion • Logistics ringmaster • Innovation game changer

• Collaboration pioneer • Market trends virtuoso

If you can describe in your own words what these job holders would be doing, you’re

already moving in the right direction. You’re starting to get a real sense of what it takes to

succeed in this emerging new workplace and why it pays to learn what OB can teach us

about human behavior

in organizations.

Behind each of the prior job titles is a common foundation that comes to life as

“networking,” “connecting,” “ideating,” “collaborating,” “ helping,” “ linking,” “support-

ing,” “seeking,” and “performing.” These and other similar behaviors drive what can be

called a smart workforce, one in which you must be prepared to excel.
2
Smart work-

forces are communities of action whose members tackle constantly shifting projects

while sharing knowledge and skills to solve real and often complex problems. Smart

workforces are built through connections activated by relational skills and social

technologies and used to forge a powerful collective brain that keeps growing and

adapting over time.

Th is text helps you bridge the gap between OB as a body of knowledge and OB as a

pathway to career and life success. Our book is about people, everyday people like you and

like us, who work and pursue careers in today’s demanding settings. It’s about people who

seek fulfi llment in their lives and jobs in a variety of ways and in uncertain times. It’s about

Organizational behavior is

the study of human behavior

in organizations.

Members of a smart

workforce work in shifting

communities of action in

which knowledge and skills

are shared to solve real and

complex

problems.

5Introducing Organizational Behavior

the challenges of leadership, ethics, globalization, technology, diversity, work–life balance,

and many social issues. And it is about how our complex ever-changing environment

requires people and organizations to continuously adapt and improve in the quest for

promising futures.

Th ere is no doubt that success with our life and career goals requires ongoing learning

and continuous attention to new trends, practices, and opportunities. Th e following

changes in what people expect and value in terms of human behavior in organizations

are of special interest in the study of OB.
3

■ Importance of connections and networks. Work is increasingly being done through

personal connections and networks. In this environment, building eff ective rela-

tionships face to face and online is a must-have career skill.

■ Commitment to ethical behavior. Highly publicized scandals involving unethical and

illegal practices prompt concerns for ethical behavior in the workplace; growing

intolerance for breaches of public faith by organizations and those who run them

are drawing new attention to business ethics.

BRINGING OB

TO LIFE
Building Skills to Succeed in a Collaboration Economy
Every time you log onto Facebook or LinkedIn, join a

multiplayer online game, or check Yelp for advice

on a good restaurant, you are part of a fast-moving

technology-driven, and very social world. But, are you

taking the skills honed in these everyday experiences

and developing them for career success in a new

“collaboration economy?” It’s a setting where work gets

done, customers get served, and ideas and information

get shared 24/7.

Dean Sally Blount of Northwestern’s Kellogg School

says that success is earned in our collaboration economy

by “people and companies who connect and collaborate

more eff ectively.” Jacob Morgan, author of Th e

Collaborative Organization (McGraw-Hill, 2012), says that

there is a great opportunity for “collaboration leaders”

who value and respect others as the most important

assets of organizations.

Collaboration leaders aren’t fi gureheads with formal

titles. Th ey are everyday leaders who are exceptionally

good at teamwork, information sharing, giving and

receiving feedback, providing peer support, and

recognizing the contributions of others. In other words,

collaboration leaders help make the people-to-people

connections that give life to collaborative organizations.

Th ey bring social technology together with face-to-face

interactions to harness the powers of knowledge,

creativity, and teamwork.

Th e collaboration economy presents a pretty stiff

career test. It calls for “hard” technology skills and real

job expertise to be combined with “soft” people skills

and a genuine personal presence. But that’s the great

opportunity of your course in organizational

behavior—a chance to learn more about yourself and

how people work together in organizations. Th e

question is this: Are you ready to jump in and let OB

help build your skills for success in a collaboration

economy?

“Collaboration leaders help make the people-to-people connections that give life to

collaborative organizations.”

� Trends with human
behavior in organizations

6 CHAPTER 1 ■ Introducing Organizational Behavior

■ Broader views of leadership. New pressures and demands mean organizations

can no longer rely on just managers for leadership. Leadership is valued from all

members, found at all levels, and fl ows in all directions—not just top-down.

■ Emphasis on human capital and teamwork. Success is earned through knowledge,

experience, and commitments to people as valuable human assets; work is increas-

ingly team based with a focus on peer contributions.

■ Demise of command-and-control. Traditional hierarchical structures and practices

are being replaced by shared leadership, fl exible structures, and participatory work

settings that engage human and social capital.

■ Infl uence of information technology. As new technologies—including social media—

penetrate the workplace, implications for work arrangements, organizational

systems and processes, and individual behavior are continuously evolving.

■ Respect for new workforce expectations. Th e new generation is less tolerant of

hierarchy, more high tech, and less concerned about status. Balance of work and

nonwork responsibilities is a top-priority value.

■ Changing concept of careers. New economy jobs require special skill sets and a

continuous development. More people now work as independent contractors and

freelancers who shift among employers rather than hold full-time jobs.

■ Concern for sustainability. Issues of sustainability are top priorities. Decision making

and goal setting increasingly give attention to the environment, climate justice, and

preservation of resources for future generations.

Organizational Behavior
as a Science

L E A R N I N G
R O A D M A P

SCIENTIFIC FOUNDATIONS OF ORGANIZATIONAL BEHAVIOR

HOW WE LEARN ABOUT ORGANIZATIONAL BEHAVIOR

How do we fi nd out what a new generation of graduates really wants and needs from work

and in careers? How do we learn how to integrate multigenerational workforces around

common goals and high performance expectations? How do we gain solid insights into

how these and other important issues of human behavior play out in day-to-day

organizational practice? Th e answer is found in one word: science.

Scientifi c Foundations of Organizational Behavior

More than a century ago, consultants and scholars were already giving attention to

the systematic study of management and organizational practices. Although the

early focus was on physical working conditions, principles of administration, and

industrial engineering, interest soon broadened to include the human factor. This

led to research dealing with individual attitudes, group dynamics, and the relation-

ships between managers and workers. Organizational behavior then emerged as a

scholarly discipline devoted to scientific understanding of individuals and groups in

organizations, and of the performance implications of organizational processes,

systems, and structures.
4

Interdisciplinary Body of Knowledge Organizational behavior is an inter-
disciplinary body of knowledge with strong ties to the behavioral sciences—psychology,

sociology, and anthropology—as well as to allied social sciences such as economics and

7Organizational Behavior as a Science

political science. What makes OB unique is its desire to integrate the diverse insights of

these other disciplines and apply them to real-world organizational problems and

opportunities. Th e ultimate goal of OB is to improve the performance of people, groups,

and organizations, and to improve the quality of work life overall.

Use of Scientifi c Methods Th e fi eld of organizational behavior uses scientifi c
methods to develop and empirically test generalizations about behavior in organizations.

OB scholars often propose and test models—simplifi ed views

of reality that attempt to

identify major factors and forces underlying real-world phenomena. Th ese models link

independent variables—presumed causes—with dependent variables—outcomes of

practical value and interest. For example, the following model describes one of the fi nd-

ings of OB research: Job satisfaction (independent variable) infl uences, absenteeism

(dependent variable). Th e “�” and “�” signs indicate that as job satisfaction increases
absenteeism is expected to go down, and as job satisfaction decreases, absenteeism

should go up.

AbsenteeismJob Satisfaction
� �

��

As you look at the above model, you might ask what dependent variables other than

absenteeism are also important to study in OB—perhaps things like task performance,

ethical behavior, work stress, incivility, team cohesion, and leadership eff ectiveness.

Th ink also about job satisfaction as a dependent variable in its own right. What indepen-

dent variables do you believe might explain whether satisfaction will be high or low for

someone doing a service job, such as an airline fl ight attendant, or a managerial job, such

as a school principal?

Figure 1.1 describes methods commonly used by OB researchers to study models

and the relationships among variables. Th ese research methods are based on scientifi c

thinking. Th is means (1) the process of data collection is controlled and systematic,

(2) proposed explanations are carefully tested, and (3) only explanations that can be

rigorously verifi ed are accepted.

Models are simplifi ed views

of reality that attempt to

explain real-world

phenomena.

Independent variables are

presumed causes that

infl uence dependent

variables.

Dependent variables are

outcomes of practical value

and interest that are

infl uenced by independent

variables.

FIGURE 1.1 Common scientifi c research methods in organizational behavior.

Sources of research
insight in OB

Field studies

in real-life
organizational
settings

Laboratory studies

in simulated and
controlled settings

Meta analyses

using statistics to pool
results of different
empirical studies

Case studies

looking in depth at
single situations

Survey studies

using questionnai
and interviews in
sample populations

res

8 CHAPTER 1 ■ Introducing Organizational Behavior

Focus on Application Th e science of organizational behavior focuses on applica-
tions that can make a real diff erence in how organizations and people in them perform.

Some examples of the many practical research questions addressed by the discipline of

OB and reviewed in this book are:

What causes unethical and socially irresponsible behavior by people in organiza-

tions? • How should rewards such as pay raises be allocated? • How can jobs

be designed for both job satisfaction and high performance? • What are the ingre-

dients of successful teamwork? • How can a manager deal with resistance to

change? • Should leaders make decisions by individual, consultative, or group

methods? • How can win–win outcomes be achieved in negotiations?

Contingency Thinking Rather than assuming that there is one best or universal
answer to questions such as those just posed, OB recognizes that behavior and practices

must be tailored to fi t the exact nature of each situation—this is called contingency

thinking. In fact, one of the most accepted conclusions of scientifi c research to date is

that there is no single best way to handle people and the situations that develop as they

work together in organizations.

Stated a bit differently, contingency thinking recognizes that cookie-cutter solu-

tions cannot be universally applied to solve organizational problems. Responses

must be crafted to best fit the circumstances and people involved. As you might

expect, this is where solid scientific findings in organizational behavior become very

helpful. Many examples are provided in the “Research Insight” feature found in each

chapter.

Quest for Evidence An essential responsibility of any science is to create and
test models that off er evidence-based foundations for decision making and action. A

book by scholars Jeff rey Pfeff er and Robert Sutton defi nes evidence-based manage-

ment as making decisions on “hard facts”—that is, about what really works, rather

than on “dangerous half-truths”—what sounds good but lacks empirical substantia-

tion.
5
One of the ways evidence-based thinking manifests itself in OB is through a

Contingency thinking seeks

ways to meet the needs of

diff erent management

situations.

Evidence-based

management uses hard facts

and empirical evidence to

make decisions.

Something to Read —The
Shift: The Future of Work
Is Already Here
As professor of management at the London Business

School, Lynda Gratton worries that students fail to

understand the nature, pace, and complexity of forces

shaping the future of work. Her book, Th e Shift

(HarperBusiness UK, 2011) describes fi ve key forces:

technology (helpful but time consuming), globaliza-

tion (workers from everywhere compete for the same

jobs), demography (more people, less space), society

(traditional communities under threat), and energy

resources (too few and shrinking). So “What’s the

worker to do?” she asks. Her answer is that we can

default and accept a

bleak future, or craft for

ourselves a bright one.

To work on the bright

side we have to shift

from “shallow general-

ist to serial master” of

things; from “isolated

competitor to innova-

tive connector” in vast

networks; and from

“voracious consumer to impassioned producer” more

focused on creating things than buying them.

Eamonn McCabe/Camera Press/
Redux Pictures

9Organizational Behavior as a Science

contingency approach in which researchers identify how diff erent situations can best

be understood and handled.

Cross-Cultural Awareness In a time of complex globalization, it’s important for
everyone, from managers and employees to government leaders, to understand how OB

theories and concepts apply in diff erent countries.
6
Although it is relatively easy to

conclude that what works in one culture may not work as well in another, it is far more

diffi cult to describe how specifi c cultural diff erences can aff ect such things as ethical

behavior, motivation, job satisfaction, leadership style, and negotiating tendencies. OB is

now rich with empirically based insights into cross-cultural issues.

Learning about Organizational Behavior

Today’s knowledge-based world and smart workforces place a great premium on learn-

ing. Only the learners, so to speak, will be able to keep the pace and succeed in a con-

nected, high-tech, global, and constantly changing environment. But just what are we

talking about here?

Th ink of learning as an enduring change of behavior that results from experience.

Th ink also of lifelong learning as a process of learning continuously from day-to-day

experiences. When it comes to learning about OB, this book and your course are starting

points and launch platforms to make your experiences more meaningful. Th ere also is a

rich and ever-expanding pool of learning experiences available in the work events and

Learning is an enduring

change in behavior that

results from experience.

Lifelong learning is

continuous learning from

everyday

experiences.

Research Insight

No one doubts there are good and bad leaders of both genders. But research by Alice Eagley and her
colleagues at Northwestern University suggests that
women are often perceived as more likely than men to use
leadership styles that result in high performance by
followers.

In a meta-analysis that statistically compared the re-
sults of forty-fi ve research studies dealing with male and
female leadership styles, Eagley and her team concluded
that women are frequently described as leading by inspir-
ing, exciting, mentoring, and stimulating creativity. They
point out that these behaviors have “transformational”
qualities that build stronger organizations through innova-
tion and teamwork. Women also score higher on rewarding
positive performance, while men score higher in punishing
and correcting mistakes.

Eagley and her colleagues explain the fi ndings in part
by the fact that followers are more accepting of a transfor-
mational style when the leader is female, and that the
style comes more naturally to women because of its
emphasis on nurturing. They also suggest that because
women may have to work harder than men to succeed,

Do the Research What do you think: Is this
study on track? Conduct an interview study of people
working for female and male managers. Ask this ques-
tion: Do women lead differently from men? Organize
the responses, and prepare an analysis that answers
your research question. Although not scientifi c, your
study could prove quite insightful.

Women Might Make Better Leaders

Source: Alice H. Eagley, Mary C. Johannesen-Smith, and Marloes I. van Engen, “Transformational, Transactional and Laissez-Faire Leadership:
A Meta-Analysis of Women and Men,” Psychological Bulletin 24.4 (2003), pp. 569–591.

Possible Leadership Strengths of Women

• Transformational

• Good at mentoring

• Very inspiring

• Encourage creativity

• Show excitement about goals

• Reward positive performance

their leadership skills get tough tests and end up being
better developed.

10 CHAPTER 1 ■ Introducing Organizational Behavior

activities, conversations with colleagues and friends, counseling and advice provided by

mentors, success models, training seminars and workshops, and other daily opportuni-

ties that consume your time. What is learned from all such experiences—now and in the

future—will in many ways be the key to your personal and career success. Th e “Bringing

OB to Life” feature helps you make these connections between OB and our everyday

experiences.

Figure 1.2 shows how the content and activities of the typical OB course fi t together in

an experiential learn

ing cycle.

7
Th e learning sequence begins with initial experience and

subsequent refl ection. It grows as theory building takes place to try to explain what has

happened. Th eory is then tested in behavior. Textbooks, readings, class discussions, and

other course assignments and activities should help you practice the phases of the learn-

ing cycle.

Notice that Figure 1.2 assigns to you a substantial responsibility for learning. Along

with your instructor, our author team can off er examples, cases, and exercises to provide

you with initial experience. We can even stimulate your refl ection and theory building by

presenting concepts and discussing their research and practical implications. Sooner or

later, however, you must become an active participant in the process; you and only you

can do the work required to take full advantage of the learning cycle.

At the end of this book you’ll fi nd the rich and useful OB Skills Workbook. It provides a

variety of active learning opportunities that can help you better understand the practical

applications of OB concepts, models, and theories. Th e workbook contains cases for

analysis, team and experiential exercises, and a portfolio of self-assessments that includes

the popular Kouzes and Posner “Student Leadership Practices Inventory.”

Finally, don’t forget that opportunities to learn more about OB and yourself abound in

everyday living. Every team project, part-time work experience, student co-curricular

activity, or visit to the store is rich in learning potential. Even our leisure pastimes from

sports to social interactions to television, movies, and online games off er learning

insights—if we tune in. Th e “OB in Popular Culture” feature in each chapter is a reminder

to keep your learning dialed in all the time.

FIGURE 1.2 Experiential
learning in an OB course.

Initial Experience

Experimentation

Theory Building

Reflection

• Personal thought
• Class discussion
• Informal discussion
• Readings

• Theories in readings
• Theories from lectures
• Personal theories
• Theories from other sources

• Trying new behaviors in
work experiences
class experiences
everyday experiences

• Lectures

• Personal experiences
• Classroom as an organization
• In-class exercises, simulations
• Group project assignments
• Cases

• Written assignments

11Th e Context of Organizational Behavior

The Context of Organizational
Behavior

L E A R N I N G
R O A D M A P

ORGANIZATIONS AND THE EXTERNAL ENVIRONMENT

THE INTERNAL ENVIRONMENT OF ORGANIZATIONS

DIVERSITY AND MULTICULTURALISM IN ORGANIZATIONS

Organizations and the External Environment

In order to understand the complex forces that infl uence human behavior in organiza-

tions, we need to begin with the nature of the “organization” itself. Simply stated, an

organization is a collection of people working together in a division of labor to achieve

a common purpose. Th is defi nition describes everything from clubs, voluntary

OB IN POPULAR CULTURE

Moral Management
and John Q
Moral managers try to act with ethical principles while
immoral managers make decisions primarily on self-
interest. To be sure, many decisions in organizations are
quite complicated, and their ethical components may
be hard to sort out.

The fi lm John Q depicts the story of a desperate
father’s attempt to save his dying child. John Archibald
(Denzel Washington) learns that his son, Mike, needs a
heart transplant and he does not have suffi cient insurance
coverage. He decides to take the heart surgeon hostage
in the hospital’s emergency room. During a lull, the hos-
tages and medical staff discuss how managed care insur-
ance practices and hospital policies result in treatment
decisions that are not always in the best interests of the
patient. One hostage questions these practices in light of
the medical profession’s Hippocratic Oath.

When Mike’s (Daniel Smith) condition worsens, John
decides to commit suicide so that a heart will be avail-
able. The heart surgeon initially balks for ethical reasons,
then agrees to do the surgery. In the end, the sacrifi ce is

not necessary. The hospital gets word that a donor heart
is available and on its way.

This movie is worth watching as a study in organiza-
tional behavior. It illustrates that ethical lines can some-
times be blurry. What’s “right” or “wrong” isn’t always
clear or agreed upon. If an insurance company refuses
to pay for preventive health screening, should the
doctor order it? If someone can’t pay, should doctors
and hospitals still provide medical care? Should a
doctor adhere to hospital policies if they jeopardize the
health of a patient?

Get to Know Yourself Better Take Assessment 5, Personal Values, in the OB Skills Workbook. The
values we hold infl uence our ethical views. This is a good time to check yours by taking the assessment and asking
yourself these questions: What did I learn about my values? Are they balanced? Do the results suggest anything
about how I might approach situations with ethical components? Can the emphasis I place on certain values create
pressures to act unethically?

New Line Cinema/Photofest

An organization is a

collection of people working

together to achieve a

common purpose.

12 CHAPTER 1 ■ Introducing Organizational Behavior

organizations, and religious bodies to entities such as small and large businesses,

schools, hospitals, and government agencies.

Figure 1.3 shows that organizations are dynamic open systems. Th ey obtain resource

inputs from the environment and transform them into fi nished goods or services that are

returned to the environment as product outputs. If everything works right, suppliers

value the organization and continue to provide needed resources, employees infuse work

activities with their energies and intellects, and customers and clients value the organi-

zation’s outputs enough to create a continuing demand for them.

Organizations are also complex adaptive systems. Because the environments they

interact with are constantly evolving and changing, organizations must adapt

to survive. And in a world that is increasingly complicated—socially, politically, and

economically—this process of adaptation is never ending. Organizations today are embed-

ded in environments whose components are so highly interconnected that changes in one

have consequences—sometimes unpredictable and even uncontroll able—for other parts.

A recent IBM Global Chief Executive Offi cer Study identifi es this rise of complexity as the

biggest challenge facing world leaders today. One CEO says: “Th e time available to capture,

interpret and act on information is getting shorter and shorter.”
8

It can be useful to describe and analyze the external environments of organizations in

terms of stakeholders—people, groups, and institutions that are aff ected by and thus

have an interest or stake in an organization’s performance. Key stakeholders from an OB

perspective include an organization’s customers, owners, employees, suppliers, regula-

tors, and local communities, as well as future generations.

Although an organization should ideally operate in ways that best serve all stakehold-

ers, the realities are that confl icting interests add to the complexity faced by decision

makers. Consider possibilities such as these. Customers want value pricing and high-

quality products, owners want profi ts and returns on investments. Employees want

secure jobs with good pay and benefi ts, suppliers want reliable contracts and on-time

payments. Regulators want compliance with laws, local communities want good organi-

zational citizenship and community support. Present generations want the benefi ts of

available natural resources, future generations want preserved and protected for long-

term sustainability.

Open systems transform

human and material resource

inputs into fi nished goods

and services.

Complex adaptive systems

interact and adapt with their

environments to survive.

Stakeholders are people and

groups with an interest or

stake in the performance of

the organization.

FIGURE 1.3 Organizations are open systems that create value while interacting with their
environments.

Environment Supplies
Resource Inputs

Information
Materials
Technology
Facilities
Money
People

Organization
Creates Value

Consumer Feedback

Transformation
Process

Work
Activity

Environment Consumes
Product Outputs

Finished Goods
and Services

13Th e Context of Organizational Behavior

The Internal Environment of

Organizations

Th e internal environment of organizations also creates an important context for human

behavior. Th ink about it. Do you act diff erently when you are with your friends, at school,

or at work? In many cases the answer is probably “yes,” and the question then becomes

“Why?” Th e answer is that the context is diff erent. To understand behavior in any setting,

we must always ask how contextual factors infl uence it and in what ways. And, we must

also consider how we or other people are aff ecting the context. Th e question in this

respect is: How do our behaviors contribute to what is happening to us and around us,

and in both positive and negative ways?

One of the strongest contextual infl uences on human behavior is organizational

culture—the shared beliefs and values that infl uence the behavior of organizational

members. Former eBay CEO Meg Whitman calls it the “character” of the organization.

She says organization culture is “the set of values and principles by which you run a com-

pany” and becomes the “moral center” that helps every member understand what is right

and wrong in terms of personal behavior.
9

Organizational cultures infl uence the way we feel and act as members. In more

authoritarian and hierarchical cultures, people are hesitant to make decisions and take

action on their own. So, they withhold initiative and wait for approval. In competitive

cultures, people can be extremely aggressive in the quest for rewards. Still other cultures

are known for their emphasis on speed and agility in dealing with markets and environ-

ments, and in generating new ideas and innovations.

Th ere is also something called organizational climate—the shared perceptions

among members regarding what the organization is like in

terms of management policies

and practices. You have probably noticed that relations among managers and employees

are relaxed and communication is free-fl owing in some climates. But in others, managers

act distant and communication is restricted.

Just how an organization’s culture and climate aff ect members depends on some-

thing called “fi t”—the match of internal environment and individual characteristics.

People who fi nd a good fi t tend to experience confi dence and satisfaction. Th ose with

a bad fi t may be prone to withdraw, experience stress, and even become angry and

aggressive due to dissatisfaction. Th e sidebar suggests possible fi t preferences for

today’s graduates.

Diversity and

Multiculturalism in

Organizations

People are an important aspect

of the internal environment of

any organization. Consultant R.

Roosevelt Th omas makes the

point that positive organizational

cultures tap the talents, ideas,

and creative potential of all

members.
10

Th is focuses attention

on workforce diversity, the

presence of individual diff erences

based on gender, race and ethnic-

ity, age, able- bodiedness, and sex-

ual orientation.
11

It also highlights

Organizational culture is a

shared set of beliefs and

values within an organization.

Organizational climate

represents shared perceptions

of members regarding what

the organization is like in

terms of management policies

and practices.

Workforce diversity

describes how people diff er on

attributes such as age, race,

ethnicity, gender, physical

ability, and sexual orientation.

Th ey’re called “Generation F,” short for the Facebook Generation. Management

scholar and consultant Gary Hamel says they are bringing new expectations to

the workplace.

• All ideas deserve a hearing.

• Contributions overrule credentials.

• Authority is earned, not given.

• Leaders are chosen, not assigned.

• Power comes from information sharing.

• Wisdom lies within the crowd.

• Teams are self organizing.

• Community grows from shared decision making.

• Recognition and joy count along with money as motivators.

• Rabble rousing is embraced, not discouraged.

Today’s Grads Take Values to Work

14 CHAPTER 1 ■ Introducing Organizational Behavior

multiculturalism as an attribute of organizations that emphasize pluralism, and genu-

ine respect for diversity and individual diff erences.
12

And in respect to Th omas’s point

again, organizations benefi t when the variety of ideas and perspectives of a diverse work-

force help them deal with complexity through innovation and adaptability.

Demographic trends driving workforce diversity in American society are well recog-

nized. Th ere are more women working than ever before. Th ey earn 60 percent of college

degrees and fi ll a bit more than half of managerial jobs.
13

Th e proportion of African Amer-

icans, Hispanics, and Asians in the population is now above 43 percent and increasing.

By the year 2060, six out of every 10 Americans will be a person of color, and close to

30 percent of the population overall will be Hispanic.
14

A key issue in any organization is inclusion—the degree to which the culture embraces

diversity and is open to anyone who can perform a job, regardless of their diversity attri-

butes.
15

In practice, however, valuing diversity must still be considered a work in progress.

Women still earn only about 75 cents per dollar earned by men; female CEOs earn 85

cents per dollar earned by males. At Fortune 500 companies women hold only 15 CEO

jobs and 6.2 percent of top-paying positions; women of color hold only 1.7 percent of

corporate offi cer positions and 1 percent of top-paying jobs.
16

Indeed, when Ursula Burns

was named CEO of Xerox, she became the fi rst African-American woman to head a

Fortune 500 fi rm.
17

Management and
Organizational Behavior

L E A R N I N G
R O A D M A P

EFFECTIVE MANAGERS • THE MANAGEMENT PROCESS

ESSENTIAL MANAGERIAL SKILLS • ETHICAL MANAGEMENT

Eff ective

Managers

A manager is someone whose job it is to directly support the work eff orts of others.

Being a manager is a unique challenge with responsibilities that link closely with the fi eld

of organizational behavior. At the heart of the matter, managers help other people get

important things done in timely, high-quality, and personally satisfying ways. And in the

workplaces of today, this is accomplished more through “helping” and “supporting” than

through traditional notions of “directing” and “controlling.” You’ll fi nd that the word

manager is increasingly being replaced in conversations by such terms as coordinator,

coach, or team leader.

Inclusion is the degree to

which an organization’s

culture respects and values

diversity.

A manager is a person who

supports the work eff orts of

other

people.

Technology Makes
Crowdsourcing Grades Easy,
But Is It a Step Too Far?
As colleges and universities face fi nancial and political

pressures to increase “productivity” in academic

programs, online course off erings are proliferating.

Instructors are experimenting with new ways to deliver

and grade online content.

One innovation is to take grading away from the

instructor and give it to the “crowd.” An assignment is

graded by averaging scores assigned by the online

students reading each other’s work.

It’s an attractive

option since productivity

goes up as instructors

can easily handle more

student enrollments. But

critics view it as an

unfortunate change in

the instructor’s role.

Professor Adam Falk of

Williams College asks if the educational outcome is the

“equivalent of a highly trained professor providing

thoughtful evaluation and detailed response?”

Multiculturalism refers to

pluralism and respect for

diversity in the workplace.

15Management and Organizational Behavior

FIGURE 1.4 The management process of planning, organizing, leading, and

controlling.

Controlling

Measuring performance
and ensuring results

Organizing

Creating structures and
work systems

Team leaders

Managers

Planning

Choosing goals and
means to achieve them

Leading

Inspiring people to
work hard

Whatever the label used, someone who is an eff ective manager helps other people

achieve both high performance and job satisfaction. Th is defi nition focuses attention on

two key outcomes, or dependent variables, that are important in OB. Th e fi rst is task

performance. Th ink of this as the quality and quantity of the work produced or the

services provided by an individual, team or work unit, or organization as a whole. Th e

second is job satisfaction. It indicates how people feel about their work and the work

setting.

OB is quite clear that managers and team leaders should be held accountable for both

task performance and job satisfaction. Performance pretty much speaks for itself. Satis-

faction might give you some pause for thought. But just as a valuable machine should not

be allowed to break down for lack of proper maintenance, the talents and enthusiasm of

an organization’s workforce should never be lost or compromised for lack of proper care.

In this sense, taking care of job satisfaction today can be considered an investment in

tomorrow’s performance potential.

The Management Process

Anyone serving as a manager or team leader faces a challenging and complicated job.

Th e nature of managerial work is often described and taught through the four functions

shown in Figure 1.4—planning, organizing, leading, and controlling. Th ese functions

make up the management process and involve the following responsibilities.

Four functions of management

■ Planning. Defi ning goals, setting specifi c performance objectives, and identifying

the actions needed

to achieve them.

■ Organizing. Creating work structures and systems, and arranging resources to

accomplish goals and objectives.

■ Leading. Instilling enthusiasm by communicating with others, motivating them to

work hard, and maintaining good interpersonal relations.

■ Controlling. Ensuring that things go well by monitoring performance and taking

corrective action as necessary.

In what has become a classic study, Henry Mintzberg described how managers enact the

management process in a busy, hectic, and challenging work context where they are

move among many tasks and face many interruptions.
18

He went on to point out that the

An eff ective manager helps

others achieve high levels of

both performance and

satisf

action.

Task performance is the

quantity and quality of work

produced.

Job satisfaction is a positive

feeling about one’s work and

work setting.

Th e management process

involves fulfi lling the four

responsibilities of planning,

organizing, leading, and

controlling.

Planning sets objectives and

identifi es the actions needed

to achieve them.

Organizing divides up tasks

and arranges resources to

accomplish them.

Leading creates enthusiasm

to work hard to accomplish

tasks successfully.

Controlling monitors

performance and takes any

needed corrective action.

16 CHAPTER 1 ■ Introducing Organizational Behavior

four management functions are fulfi lled more simultaneously than step-by-step. Th ey are

also accomplished while a manager acts out the set of ten managerial roles shown in

Figure 1.5.

A manager’s interpersonal roles involve working directly with other people, hosting

and attending offi cial ceremonies ( fi gurehead), creating enthusiasm and serving people’s

needs (leader), and maintaining contacts with important people and groups (liaison).

Th e informational roles involve managers exchanging information with other people,

seeking relevant information (monitor), sharing it with insiders (disseminator), and shar-

ing it with outsiders (spokesperson). A manager’s decisional roles involve making deci-

sions that aff ect other people, seeking problems to solve and opportunities to explore

(entrepreneur), helping to resolve confl icts (disturbance handler), allocating resources to

various uses (resource allocator), and negotiating with other parties (negotiator).

Essential Managerial Skills

We all need skills to do well in work and life. It’s no diff erent for managers and team

leaders—it takes skill to perform well. Formally stated, a skill is an ability to translate

knowledge into action that results in a desired performance. Robert Katz divides the

essential managerial skills into three categories: technical, human, and conceptual.
19

Technical Skills A technical skill is an ability to perform specialized tasks using
knowledge or expertise gained from education or experience. A good example is skill in

using the latest communication and information technologies. In the high-tech workplaces

of today, technical profi ciency in database management, spreadsheet analysis, presenta-

tion software, video chats and conferencing, and social media is often a hiring prerequi-

site. It’s also helpful to think “skills” in respect to your college major. Recruiters today don’t

just want to know that you are a marketing or fi nance or MIS major with high grades. Th ey

want to know what skills in the major you are going to bring with you to the job.

Human Skills Central to all aspects of managerial work and team leadership are
human skills, or the ability to work well with other people. Th ey show up as a spirit of

trust, enthusiasm, and genuine involvement in interpersonal relationships. A person

with good human skills will have a high degree of self-awareness and a capacity for

understanding or empathizing with the feelings of others. People with this skill are able

to interact well with others, engage in persuasive communications, and deal successfully

with disagreements and confl icts.

A manager or team leader’s human skills should contain a strong base of emotional

intelligence (EI). As defi ned by Daniel Goleman, EI is the ability to understand and

A skill is an ability to turn

knowledge into eff ective

action.

Technical skill is an ability to

perform specialized tasks.

Human skills comprise the

ability to work well with other

people.

Emotional intelligence is

the ability to manage oneself

and one’s relationships

eff ectively.

FIGURE 1.5 Mintzberg’s ten
roles of effective managers.

Interpersonal Roles

How a manager interacts with
other people

• Figurehead
• Leader
• Liaison How a manager uses information

in decision making

• Entrepreneur
• Disturbance handler
• Resource allocator
• Negotiator

Decisional Roles

How a manager exchanges and
processes information

• Monitor
• Disseminator
• Spokesperson

Informational Roles

17Management and Organizational Behavior

manage emotions well, both personally and in relationships with others.
20

Th e building

blocks for emotional intelligence are:

■ Self-awareness—ability to understand your own moods and emotions

■ Self-regulation—ability to think before acting and to control bad impulses

■ Motivation—ability to work hard and persevere

■ Empathy—ability to understand the emotions of others

■ Social skill—ability to gain rapport with others and build good relationships

Human skills in emotional intelligence and interpersonal relationships are essential to

success in each of the managerial activities and roles previously discussed. If you don’t

have the human skills you can’t connect with other people in a positive way. Managers and

team leaders need these skills to develop, maintain, and work well with a wide variety of

people, both inside and outside the organization.
21

Th ese include task networks of specifi c

job-related contacts, career networks of career guidance and opportunity resources, and

social networks of trustworthy friends and peers.
22

It can be said in this sense that strong

human skills are the pathways to obtain social capital in the form of relationships and

networks that can be called upon as needed to get work done through other people.

Conceptual Skills In addition to technical and human skills, managers should be
able to view the organization or situation as a whole so that problems are always solved

Social capital is a capacity

to get things done due to

relationships with other

people.

WORTH CONSIDERING …OR BEST AVOIDED?

A group of Stanford University researchers wondered if allowing work to be done at home was really worth it to
employers. Seeking real facts upon which to base a conclu-
sion, they set up a fi eld experiment using call center workers
at a large Chinese travel agency.

Using odd or even birth dates, 255 volunteers were ran-
domly assigned to “at home” or “in the offi ce” work shifts for
9 months. Their performance was monitored and an overall
evaluation made at the end of the research period. Results
showed that telecommuters were online for more minutes,
took more calls per hour, and were less likely to quit. They
also reported more positive moods and greater job satisfac-
tion than did the offi ce workers. working at home also result-
ed in fewer break times while on shift and fewer days of sick
leave.

When productivity gains, reduced training and hiring costs,
and offi ce rentals were tallied, the company calculated it
saved $2,000 for every $3,000 spent on telecommuter salaries.
And when the experiment was over and workers were given
the chance to switch groups if they wished, those that ended
up in the telecommuter group became even more productive.

Do the Analys

What’s your take? Do the fi ndings make sense in terms of
your impressions and experience? Does this study suggest
that everyone should be given the option to work from

Trouble Balancing Work and Home?
Home Working May Be the Answer

home at least part of the time? What conditions might you
set on the types of jobs and job holders that qualify for work
from home? Is the evidence from this study good enough to
make real-world decisions about the use of telecommuting?

� Core building blocks of
emotional intelligence

18 CHAPTER 1 ■ Introducing Organizational Behavior

for the benefi t of everyone concerned. Th is capacity to think analytically and solve com-

plex and sometimes ambiguous problems is a conceptual skill. It involves the ability to

see and understand how systems work and how their parts are inter related, including

human dynamics. Conceptual skill is used to identify problems and opportunities, gather

and interpret relevant information, and make good problem-solving decisions.

One fi nal point about Katz’s model of essential managerial skills is worth thinking about.

He suggests that the relative importance of these skills varies across the diff erent levels of

management. Technical skills are considered more important at entry levels, where supervi-

sors and team leaders must deal with job-specifi c problems. Senior executives require more

conceptual skills as they face more complex problems and deal with strategic issues related to

organizational mission and fi tness. Human skills, which are strongly grounded in the founda-

tions of organizational behavior, are consistently important across all managerial levels.

Ethical Management

Having managerial and leadership skills is one thing; using them correctly to get things

done in organizations is quite another. And when it comes to ethics and morality, scholar

Archie B. Carroll draws a distinction between immoral managers, amoral managers, and

moral managers.
23

Th e immoral manager essentially chooses to behave unethically. She or he doesn’t

subscribe to any ethical principles, making decisions and acting to gain best personal

Conceptual skill is the ability

to analyze and solve complex

problems.

An immoral manager

chooses to behave unethically.

CHECKING ETHICS IN OB

Is Management
a Profession?
Does it surprise you that a Harvard Business Review article
claims managers are losing the public trust? To help
change things for the better, the authors call for business
schools to address management as a “profession” that is
governed by codes of conduct that “forge an implicit
social contract with society.” One response to their call is
MBA Oath, a nonprofi t organization. Its goal is to create a
community of graduating MBA students from any univer-
sity that voluntarily sign an oath that pledges them to
“create value responsibly and ethically.” So far over 250
schools are represented in the community. A student
signing the MBA Oath accepts statements such as these:

“I will manage my enterprise with loyalty and care,
and will not advance my personal interests at the
expense of my enterprise or society.”

Make Ethics Personal What is your position on the MBA Oath? Would you take it, and sincerely try to
live up to it in day-to-day practice? How about the whole concept of management being a profession like medicine
and law? Can professionalizing management really make a difference in terms of ethical accountability and everyday
managerial behavior?

Jin Lee/Bloomberg/Getty Images, Inc.

“I will refrain from corruption, unfair competition, or
business practices harmful to society.”

“I will protect the human rights and dignity of all
people affected by my enterprise, and I will oppose
discrimination and exploitation.”

19Leadership and Organizational Behavior

advantage. Perhaps the best examples are disgraced executives such as Bernard Madoff ,

whose unethical acts made national and world headlines. Th e amoral manager, by con-

trast, acts unethically at times but does so unintentionally. Th is manager fails to consider

the ethics of a decision or behavior. Unintentional ethical lapses that we all must guard

against include prejudice from unconscious stereotypes and attitudes, showing bias

based on in-group favoritism, and claiming too much personal credit for performance

accomplishments.
24

Th e moral manager incorporates ethical principles and goals into

his or her personal behavior. Ethical behavior is a goal, a standard, and even a matter of

routine; ethical reasoning is part of every decision, not just an occasional afterthought.

Carroll believes that the majority of managers tend to act amorally. If this is true, and

because we also know immoral managers are around, it is very important to understand

personal responsibilities for everyday ethical behavior and leadership. All organization

members can and should be ethical leaders. Th is includes always acting as ethical role

models and being willing to take stands in the face of unethical behavior by those above,

below, and around them.

A review article by Terry Th omas and his colleagues describes how the “ethics center

of gravity” shown in Figure 1.6 can be moved positively through moral leadership or neg-

atively through amoral leadership.
25

In this view, a moral manager or moral leader always

sets an ethics example, communicates ethics values, and champions ethics mindfulness.

Th is is defi ned as an “enriched awareness” that causes one to behave with an ethical con-

sciousness from one decision or behavioral event to another.

Moral managers and moral leaders contribute to the “virtuous shift” shown in Figure 1.6.

Th ey help create an organizational culture in which people encourage one another to act

ethically as a matter of routine. One of the themes of this book, as refl ected in the “Ethics in

OB” feature in each chapter, is that ethics is the responsibility of everyone in the organization.

Leadership and Organizational
Behavior

L E A R N I N G

R O A D M A P
THE LEADERSHIP PROCESS • EFFECTIVE LEADERS • EFFECTIVE FOLLOWERS

The Leadership Process

Th e job of a manager or team leader has never been more demanding than it is in today’s

dynamic and hypercompetitive work environments. But the fact is, not all managers are

An amoral manager fails to

consider the ethics of a

decision or behavior.

A moral manager makes

ethical behavior a personal

goal.

Ethics mindfulness is an

enriched awareness that

causes one to consistently

behave with ethical

consciousness.

FIGURE 1.6 Moral leadership, ethics mindfulness, and the virtuous shift.

Source: Developed from Terry Thomas, John R. Schermerhorn Jr., and John W. Dinehart,
“Strategic Leadership of Ethical Behavior in Business,” Academy of Management Executive 18
(May 2004), pp. 56–66.]

Leader’s impact
on

ethics mindfulness

Organization’s Ethics Center of Gravity

Moral
leadership,
“Virtuous
shift”

Amoral
leadership,
“Negative
shift”

20 CHAPTER 1 ■ Introducing Organizational Behavior

good leaders. And even if they were, the challenges facing organizations are too complex

for managers alone to resolve. Organizations today require leadership at all levels, not

just from those holding the formal titles.

Leadership occurs when leaders and followers work together to advance change that

benefi ts the mission and vision of the organization. Leadership is a process, not just the

leader’s behavior. As shown in Figure 1.7, it requires leaders and followers to partner in

jointly producing leadership outcomes. Eff ective following is an essential—perhaps the

most important part—of the leadership process. Without followers there can be no leaders.

Interestingly, leadership doesn’t always have to be intentional. Sometimes others

follow because they see leadership potential in someone, or they like what a person says

and how they say it. Th is means that leadership is not only downward infl uence, it also

involves infl uencing upward and side to side. You can be a leader by convincing higher

management to adopt new practices suggested from your level. You can be a leader

among your peers by becoming the person people turn to for advice, support, or direc-

tion. And, remember the notion of the manager as “coach” and “coordinator”? Every time

you act in ways that fi t these descriptions, there’s no doubt you’re being a leader.

Eff ective Leaders

Eff ective leaders contribute to the leadership process by using their infl uence to advance

positive outcomes. Leaders are those who are willing to proactively envision new ways of

doing things and take initiative in promoting needed changes in organizations. Organiza-

tions are full of leaders, managers and non-managers alike. Th ese are people who get lis-

tened to by their peers, their bosses, and people below and higher up in the organization.

Leaders know that competence and reputation, being an eff ective communicator, and

developing relationships and infl uence are vital to their success. Th erefore they work to

develop these skills. Eff ective leaders, for example, frame communication in ways that

others will listen. Framing in this setting means tailoring communication in ways to

encourage certain interpretations and discourage others. An eff ective leader recognizes

that focusing on organizational interest (e.g., “We can increase productivity if we give

people more time to rest and rejuvenate”) will be a more eff ective frame than focusing on

self-interest (e.g., “We’ve been working too hard and want time off ”).

Eff ective leaders also know how to build relationships. Th ey do what they can to be

trustworthy, reliable, and respectful in not sharing or spreading information inappropri-

ately. Th ey understand that relationships are developed through social exchange, so

they manage exchange processes and reciprocity to build partnerships and networks.

Th ey help others out when needed because they know that the law of reciprocity will

invoke a sense of obligation by the other to return the favor (“if I do something for you,

you will do something for me later if I need it”). Th is helps them build networks and rela-

tionships that serve as a key source of leadership infl uence.

Leaders succeed when people follow them not because they have to, but because

they want to. Th ey are followed because others see the value of their ideas and

Framing means tailoring

communication in ways

to encourage certain

interpretations and

discourage others.

Social exchange means

that people build human

relationships and trust

through exchanges of favors

based on reciprocity.

Th e law of reciprocity

states that if someone does

something for someone else

it will invoke a sense of

obligation to return the favor.

Th e leadership process

involves leaders and followers

jointly producing leadership

outcomes.

FIGURE 1.7 The leadership
process.

Leadership

Leading
(influencing)

Following
(deferring)

Following
(deferring)
Leading
(influencing)

Outcomes

21Leadership and Organizational Behavior

suggestions. Th is positive infl uence emerges from leaders’ competence, persuasiveness,

and human skills. Managers and team leaders, by virtue of their positions of authority,

have the opportunity to act as leaders. But they don’t always do so, or do so successfully.

Th e “Finding the Leader in You” feature in each chapter is designed to provide role mod-

els and get you thinking about developing your leadership potential.

Eff ective Followers

Eff ective followers are those who work with leaders to produce positive outcomes. Th ey

support leaders by being willing to collaborate and defer when needed, rather than work-

ing against leaders or trying to undermine their power. At the same time, eff ective follow-

ers are not blindly obedient or subservient and passive. You are being an eff ective follower

when you assume responsibility for telling leaders information they need to know, and not

avoiding responsibility for passing along the “bad” news as well as the “good” news.

Th e best followers do not have to be micromanaged. Th ey take responsibility for their own

attitudes and behaviors and view themselves as partners with leaders in the leadership pro-

cess. Th ey help the manager by avoiding engaging in upward delegation, or passing their

problems on to managers and burdening them with even more work. Th e best followers bring

solutions along with problems. Overall, they try to identify things that could cause problems

for leaders and then work to seek solutions before the problems escalate into big issues.

Organizations today are undergoing major transitions. Th ey require successful leadership

at all levels, and the need for more eff ective followership is on the rise. Followers today

cannot get away with shrugging off responsibility or passing along blame as they might have

Upward delegation means

passing problems or

responsibilities upward in the

hierarchy in ways that burden

managers with more work.

Michelle Greenfi eld Leads with a Sustainability Vision

W hen she was named as a recipient of the Ohio Department of Development’s Keys to Success
Award, Michelle Greenfi eld said, “It’s exciting. It’s kind of
nice to be recognized as a good business owner. The goal
is not to have the award, the goal is to have a good busi-
ness and do well.” She and her husband, Geoff, certainly
do have a good business; it’s called Third Sun Solar Wind
and Power, Ltd.

The Greenfi elds began by building a rural home that
used no electricity in rural Athens County, Ohio. Solar
power was the replacement, and they have yet to pay an
electric utility bill. As friends became interested, they
helped others get into solar power, and the business kept
growing from there. It has been ranked by Inc. magazine
as thirty-second among the fastest-growing energy busi-
nesses in the United States. Third Sun is the largest pro-
vider of solar energy systems in the Midwest and has
experienced a 390 percent growth in 3 years. Quite a
story for an idea that began with a sustainable home!

Soon after its birth, Third Sun moved into a business
incubator dedicated to helping local fi rms grow and pros-
per. Michelle says that they lived very frugally in their rural
home, and this helped them start the business on a low
budget. They have also benefi ted from tapping the local
workforce in a university town and from having MBA
students work with their fi rm in consulting capacities.

As their com-
pany grew, Geoff
focused on tech-
nical issues while
Michelle spent
most of her time
on the business
and managerial
ones. She’s now
the CEO and pri-
marily concerned
with strategic issues as the fi rm grows. “I do a lot of mar-
keting,” she says, “I do speaking engagements . . . I serve
on the Board of Directors of Green Energy Ohio.”

What’s the Lesson Here?
Michelle Greenfi eld is proud of her accomplishments
and says, “I think it’s nice to be able to point out that
there are women in the fi eld that also have enough
brains to be successful.” She also points out that the
name Third Sun was chosen to represent a “third son”
for the couple, one requiring lots of nurturing in order
to help it grow big and strong. Michelle’s leadership
combines entrepreneurship with vision to help save our
planet. Could more people, even you, follow her path?

Christian Baird Photography

IN YOU
FINDING THE LEADER

22 CHAPTER 1 ■ Introducing Organizational Behavior

in the past. Th ey are expected to question and challenge leaders when needed, and to bring

new ideas and creativity to their work. But to do so eff ectively they must act with respect, and

keep the higher purpose in mind—the focus is on working with leaders in ways that advance

the mission and purpose of the organization. And when leaders and followers partner eff ec-

tively together, the result is a more meaningful, engaging and fulfi lling work experience.

Key Questions and Answers
What is organizational behavior, and why is it important?

• Organizational behavior (OB) is the study of human behavior in organizations, focusing

on individuals, teams, interpersonal processes, and organizational dynamics.

• OB is a body of knowledge with real applications to everyday living and careers, particularly

in respect to a smart workforce where connections and collaboration are the keys to success.

• Trends and issues of interest in OB include ethical behavior, the importance of human

capital, an emphasis on teams, the growing infl uence of information technology, new

workforce expectations, changing notions of careers, and concerns for sustainability.

• OB is an applied discipline developed through scientifi c methods and taking a contin-

gency perspective that there is no single best way to handle people and the situations

that develop as they work together in organizations.

How do we learn about organizational behavior?

• Learning is an enduring change in behavior that results from experience.

• Lifelong learning about organizational behavior requires a commitment to continuous

learning from one’s work and everyday experiences.

• Most organizational behavior courses use a variety of instructional methods—self-

assessments, experiential exercises, team projects, and case studies—to take advantage

of the experiential learning cycle.

What is the context of organizational behavior?

• An organization is a collection of people working together in a division of labor for a

common purpose.

• Organizations are open and adaptive systems that change over time while interacting

with their environments to obtain resource and transform them into useful products

and services.

• Key stakeholders in the external environments of organizations include customers,

owners, suppliers, regulators, local communities, employees, and future generations.

• Th e organizational culture is the internal “personality” of the organization, including

the beliefs and values that are shared by members.

• Positive organizational cultures place a high value on workforce diversity and multicul-

turalism, emphasizing respect and inclusiveness for all members.

What are the challenges of management in organizations?

• Eff ective managers directly support and help others reach high levels of both perfor-

mance and job satisfaction; they are increasingly expected to act more like “coaches”

and “facilitators” than like “bosses” and “controllers.”

Study Guide1

23Self-Test 1

• Th e four functions of management are planning—to set directions; organizing—to

assemble resources and systems; leading—to create workforce enthusiasm; and

controlling—to ensure desired results.

• Managers use a combination of essential technical, human, and conceptual skills while

working in networks of people to fulfi ll a variety of interpersonal, informational, and

decisional roles.

What are the challenges of leadership in organizations?

• Eff ective leaders are individuals who successfully use infl uence to create change that

benefi ts the mission and vision of the team or organization.

• Not all managers are good leaders that attract followers because their ideas or sugges-

tions are valued and others choose to go along or align with them.

• Essential leadership skills include building competence and reputation, being an eff ec-

tive communicator, and developing relationships and infl uence.

• Essential followership skills involve being supportive of leaders, not delegating upward,

and proactively anticipating problems or issues that could disrupt the team or the

leader’s ability to meet organizational goals.

Terms to Know
Amoral manager (p. 19)

Complex adaptive systems

(p. 12)

Conceptual skill (p. 18)

Contingency thinking (p. 8)

Controlling

(p. 15)

Dependent variables

(p. 7)

Eff ective manager (p. 15)

Emotional intelligence

(p. 16)

Ethics mindfulness (p. 19)

Evidence-based

management (p. 8)

Framing

(p. 20)

Human skills (p. 16)

Immoral manager (p. 18)

Inclusion (p. 14)

Independent variables

(p. 7)

Job satisfaction (p. 15)

Law of Reciprocity (p. 20)

Leadership process

(p. 20)

Leading (p. 15)

Learning (p. 9)

Lifelong learning (p. 9)

Management process

(p. 15)

Manager (p. 14)

Models (p. 7)

Moral manager (p. 19)

Multiculturalism (p. 14)

Open systems (p. 12)

Organization (p. 11)

Organizational behavior

(p. 4)

Organizational climate

(p. 13)

Organizational culture

(p. 13)

Organizing (p. 15)

Planning (p. 15)

Skill (p. 16)

Smart workforce (p. 4)

Social capital (p. 17)

Social exchange (p. 20)

Stakeholders (p. 12)

Task performance (p. 15)

Technical skill (p. 16)

Upward delegation (p. 21)

Workforce diversity (p. 13)

Self-Test 1
Multiple Choice

1. Which of the following issues would be most central to the fi eld of organizational

behavior (OB)?

(a) How to improve advertising for a new product.

(b) How to increase job satisfaction and performance among members of a team.

(d) Designing a new management information system.

24 CHAPTER 1 ■ Introducing Organizational Behavior

2. What is the best description of the context for organizational behavior today?

(a) Command-and-control is in.

(b) Th e new generation is similar to the old.

(d) Work–life balance concerns are in.

3. Th e term workforce diversity typically refers to diff erences in race, age, gender,

ethnicity, and among people at work.

(a) social status (b) personal wealth

4. Which statement about OB is most correct?

(a) OB seeks “one-best-way” solutions to management problems.

(b) OB is a unique science that has little relationship to other scientifi c disciplines.

(d) OB is so modern that it has no historical roots.

5. In the open-systems view of organizations, such things as technology, information,

and money are considered .

(a) transformation elements (b) feedback

6. If the organization culture represents the character of an organization in terms of

shared values, the represents the shared perceptions of members

about day-to-day management practices.

(a) value chain (b) organization climate

7. Which of the following is not a good match of organizational stakeholder

and the interests they often hold important?

(a) customers—high-quality products (b) owners—returns on investments

8. Which word best describes an organizational culture that embraces multicultural-

ism and in which workforce diversity is highly valued?

(a) inclusion (b) eff ectiveness

9. Th e management function of is concerned with creating enthusiasm

for hard work among organizational members.

(a) planning (b) motivating

10. In the management process, is concerned with measuring perfor-

mance results and taking action to improve future performance.

(a) transforming (b) organizing

11. Among Mintzberg’s ten managerial roles, acting as a fi gurehead and liaison are

examples of roles.

(a) interpersonal (b) informational

Steps to Further Learning 1

12. When a manager moves upward in responsibility, Katz suggests

skills decrease in importance and skills increase in importance.

(a) human, conceptual (b) conceptual, emotional

13. A person with high emotional intelligence would be strong in , the

ability to think before acting and to control disruptive impulses.

(a) motivation (b) perseverance

14. When a person’s human skills are so good that he or she has relationships with other

people who can be confi dently asked for help and assistance at work, these skills

have created social capital for the individual.

(a) analytical capacity (b) ethics mindfulness

15. Class discussions, “debriefs,” and individual papers based on case studies, team

projects, and in-class activities are all ways an instructor tries to engage students

in which part of the experiential learning cycle?

(a) initial experience (b) refl ection

Short Response

16. What are the key characteristics of OB as a scientifi c discipline?

17. What does “valuing diversity” mean in the workplace?

18. What does “self-regulation” mean in the context of emotional intelligence?

19. When is a manager an eff ective leader?

Applications Essay

20. Carla, a college junior, is participating in a special “elementary education outreach”

project in her local community. Along with other students from the business school,

she is going to spend the day with fourth- and fi fth-grade students and introduce

them to the opportunities of going to college. One of her tasks is to lead a class dis-

cussion of the question “How is the world of work changing today?” Help Carla out

by creating an outline of the major points she should discuss with the students.

Case for
Critical Thinking

Team and
Experiential Exercises

Self-Assessment
Portfolio

• Trader Joe’s
• Leadership Training

Dilemma

• My Best Manager
• My Best Job
• Graffi ti Needs

Assessment

• Learning Styles
• Student Leadership

Practices Inventory
• Managerial Assumptions
• 21st-Century Manager
• Turbulence Tolerance Test

Steps to Further Learning 1

Top Choices from Th e OB Skills Workbook

Th ese learning activities from Th e OB Skills Workbook found at the back of the book

are suggested for Chapter 1.

Appreciation opens doors to opportunity
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