answer the questions please
What are the motivational benefits of intrinsic rewards?
What is the job characteristics model? How does it motivate employees
just one page is good
chapter 4 &5
chapter 4 page number 154 to 191
chapter 5 page number 192 to 227
Organizational Behaviour: Concepts, Controversies, Applications
Eighth Canadian Edition
Chapter 4
Theories of Motivation
Copyright © 2019 Pearson Canada Inc.
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1
Chapter Outline (1 of 2)
What Is Motivation?
Needs Theories of Motivation
Maslow’s Hierarchy of Needs Theory
Motivation-Hygiene Theory
McClelland’s Theory of Needs
Summarizing Needs Theories
Process Theories of Motivation
Expectancy Theory
Goal-Setting Theory
Self-Efficacy Theory
Reinforcement Theory
Copyright © 2019 Pearson Canada Inc.
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Material pertinent to this discussion is found under “SnapShot Summary” at the end of the chapter
2
Chapter Outline (2 of 2)
Responses to the Reward System
Equity Theory
Fair Process and Treatment
Self-Determination Theory
Increasing Intrinsic Motivation
Motivation for Whom?
Putting It All Together
Copyright © 2019 Pearson Canada Inc.
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Material pertinent to this discussion is found under “SnapShot Summary” at the end of the chapter
3
Learning Outcomes (1 of 2)
Describe the three key elements of motivation.
Evaluate the applicability of early theories of motivation.
Apply the key tenets of expectancy theory to motivating employees.
Describe goal-setting theory, self-efficacy theory, and reinforcement theory.
Describe why equity and fairness matter in the workplace.
Copyright © 2019 Pearson Canada Inc.
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Material pertinent to this discussion is found at the beginning of the chapter.
4
Learning Outcomes (3 of 2)
Demonstrate how organizational justice is a refinement of equity theory.
Apply the predictions of self-determination theory to intrinsic and extrinsic rewards.
Discuss the ethics behind motivation theories.
Summarize the essence of what we know about motivating employees.
Copyright © 2019 Pearson Canada Inc.
4 – ‹#›
Material pertinent to this discussion is found at the beginning of the chapter.
5
What Is Motivation?
Motivation
The intensity, direction, and persistence of effort a person shows in reaching a goal:
Intensity: How hard a person tries
Direction: Where effort is channelled
Persistence: How long effort is maintained
Copyright © 2019 Pearson Canada Inc.
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LO1: Material pertinent to this discussion is found under “What Is Motivation?”
6
Theory X and Theory Y
Theory X Assumptions
Employees dislike work
Employees attempt to avoid work
Employees must be coerced, controlled, or threatened with punishment to achieve goals.
Theory Y Assumptions
Employees like to work
Employees are creative, and seek responsibility
Employees will exercise self-direction and self-control if they are committed to the objectives.
Copyright © 2019 Pearson Canada Inc.
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LO1; Material pertinent to this discussion is found under “What Is Motivation?”
7
Motivators
Intrinsic Motivators
A person’s internal desire to do something
interest, challenge, and personal satisfaction
Extrinsic Motivators
Motivation that comes from outside the person
pay, bonuses, and other tangible rewards
Copyright © 2019 Pearson Canada Inc.
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LO1; Material pertinent to this discussion is found under “What Is Motivation?”
Ask students whether they’re motivated more by intrinsic or extrinsic factors, and the conditions where this would vary.
8
Needs Theories of Motivation
Basic idea
Individuals have needs that, when unsatisfied, have the potential to create motivation
Maslow’s Hierarchy of Needs Theory
Herzberg’s Motivation-Hygiene Theory
McClelland’s Theory of Needs
Copyright © 2019 Pearson Canada Inc.
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LO2; Material pertinent to this discussion is found under “Needs Theories of Motivation.”
Note: This is an introductory slide to introduce the Needs Theories of Motivation. Further slides will provide detail on each theory.
The early needs theories, developed in the 1950s, are often heavily attacked and are now questionable in terms of validity. However, these are probably the best-known explanations for employee motivation, and they do represent the foundation from which contemporary theories have grown. Also, practising managers use these theories in explaining employee motivation.
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Maslow’s Hierarchy of Needs (1 of 2)
Physiological
Includes hunger, thirst, shelter, sex, and other bodily needs
Safety
Includes security and protection from physical & emotional harm
Social
Includes affection, belongingness, acceptance, and friendship
Esteem
Includes internal esteem factors: self-respect, autonomy, and achievement
Includes external esteem factors: status, recognition, and attention
Self-actualization
The drive to become what one is capable of becoming
Includes growth, achieving one’s potential, and self-fulfillment
Copyright © 2019 Pearson Canada Inc.
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LO2; Material pertinent to this discussion is found under “Needs Theories of Motivation.”
Abraham Maslow’s theory is perhaps the best known of all. He hypothesized that within every human being there exists a hierarchy of five needs: physiological, safety, social, esteem, and self-actualization.
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Maslow’s Hierarchy of Needs (2 of 2)
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LO2; Material pertinent to this discussion is found under “Needs Theories of Motivation.”
11
Herzberg’s Motivation-Hygiene Theory
Motivators
Sources of satisfaction
Intrinsic factors (content of work)
Achievement
Recognition
Challenging, varied, or interesting work
Responsibility
Advancement
Growth
Hygiene factors
Sources of dissatisfaction
Extrinsic factors (context of work)
Company policy and administration
Unhappy relationship with employee’s supervisor
Poor interpersonal relations with one’s peers
Poor working conditions
Copyright © 2019 Pearson Canada Inc.
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LO2; Material pertinent to this discussion is found under “Needs Theories of Motivation.”
Motivation-Hygiene Theory was proposed by psychologist Frederick Herzberg after investigating the question, “What do people want from their jobs?” Factors affecting job attitudes were tabulated and classified. Herzberg concluded that the replies people gave when they felt good about their jobs were significantly different from the replies given when they felt bad.
12
Comparison of Satisfiers and Dissatisfiers
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LO2; Material pertinent to this discussion is found under “Needs Theories of Motivation.”
Herzberg’s data suggested that the opposite of satisfaction is not dissatisfaction, as was traditionally believed. The factors that were cited as leading to extreme dissatisfaction had very little relation to those factors cited as leading to extreme satisfaction.
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Contrasting Views of Satisfaction and Dissatisfaction
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LO2; Material pertinent to this discussion is found under “Needs Theories of Motivation.”
Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. Herzberg proposed the existence of a dual continuum: The opposite of “Satisfaction” is “No Satisfaction” and the opposite of “Dissatisfaction” is “No Dissatisfaction.”
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Criticisms of Motivation-Hygiene Theory
Procedure Herzberg used is limited by its methodology.
Reliability of Herzberg’s methodology is questioned.
No overall measure of satisfaction was used.
Herzberg assumed that a relationship exists between satisfaction and productivity.
Copyright © 2019 Pearson Canada Inc.
4 – ‹#›
LO2; Material pertinent to this discussion is found under “Needs Theories of Motivation.”
15
McClelland’s Theory of Needs
Need for achievement
The drive to excel, to achieve in relation to a set of standards, to strive to succeed
Need for power
The need to make others behave in a way that they would not have behaved otherwise
Need for affiliation
The desire for friendly and close interpersonal relationships
Copyright © 2019 Pearson Canada Inc.
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LO2; Material pertinent to this discussion is found under “Needs Theories of Motivation.”
David McClelland proposes three needs as being important in organizational settings for understanding motivation. These are
need for achievement (nAch), to achieve in relation to set of standards,
need for power (nPow), the need to make others behave in a way that they would not have behaved otherwise, and
need for affiliation (nAff), the desire for friendly and close interpersonal relationships.
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Relationship of Various Needs Theories
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LO4; Material pertinent to this discussion is found under “Needs Theories of Motivation.”
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Summarizing Needs Theories
All the needs theories propose a similar idea: Individuals have needs that, when unsatisfied, have the potential to create motivation.
Maslow: Argues that lower-order needs must be satisfied before one progresses to higher-order needs.
Herzberg: Motivators lead to satisfaction. Hygiene factors must be met if a person is not to be dissatisfied. However, they will not lead to satisfaction.
McClelland’s: People vary in the types of needs they have. Their motivation and how well they perform in a work situation are related to whether they have a need for achievement, affiliation, or power.
Copyright © 2019 Pearson Canada Inc.
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LO2; Material pertinent to this discussion is found under “Needs Theories of Motivation.”
18
Summary: Impact of Needs Theories
Maslow: Enjoys wide recognition among practising managers. Most managers are familiar with it.
Herzberg: The popularity of giving workers greater responsibility for planning and controlling their work can be attributed to his findings. Shows that more than one need may operate at the same time.
McClelland: Tells us that high need achievers do not necessarily make good managers, since high achievers are more interested in how they do personally.
Copyright © 2019 Pearson Canada Inc.
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LO2; Material pertinent to this discussion is found under “Needs Theories of Motivation.”
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Summary: Support and Criticism of Needs Theories
Maslow: Research does not generally validate the theory. In particular, there is little support for the hierarchical nature of needs. Criticized for how data was collected and interpreted.
Herzberg: Not really a theory of motivation: assumes a link between satisfaction and productivity that was not measured or demonstrated.
McClelland’s: Mixed empirical support, but theory is consistent with our knowledge of individual differences among people. Good empirical support, particularly on needs achievement.
Copyright © 2019 Pearson Canada Inc.
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LO2; Material pertinent to this discussion is found under “Needs Theories of Motivation.”
20
Process Theories of Motivation
Look at the actual process of motivation
Expectancy theory
Goal-setting theory
Self-efficacy theory
Reinforcement theory
Copyright © 2019 Pearson Canada Inc.
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LO3; Material pertinent to this discussion is found under “Process Theories of Motivation.”
Note: This is an introductory slide to Process Theories of Motivation. There follow specific slides that provide speaking notes for the three process theories listed.
21
Expectancy Theory
The theory that employees will be motivated to exert a high level of effort if they believe the following:
That their effort will lead to good performance
That good performance will be followed by a given outcome (organizational rewards such as salary increase)
That the reward will satisfy employee’s personal goals
Copyright © 2019 Pearson Canada Inc.
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LO3; Material pertinent to this discussion is found under “Process Theories of Motivation.”
This theory concerns an attractiveness, performance-reward and effort-performance linkage. The likelihood a person will act in a certain way depends on the strength of his or her expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual.
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Expectancy Relationships
The theory focuses on three relationships:
Effort-Performance Relationship (Expectancy)
The perceived probability that exerting a given amount of effort will lead to performance
Performance-Reward Relationship (Instrumentality)
The degree to which the individual believes that performing at a particular level will lead to organizational rewards
Rewards-Personal Goals Relationship (Valence)
The degree to which organizational rewards satisfy an individual’s personal goals or needs and are attractive to the individual
Copyright © 2019 Pearson Canada Inc.
4 – ‹#›
LO3; Material pertinent to this discussion is found under “Process Theories of Motivation.”
23
Steps to Increasing Motivation, Using Expectancy Theory
Copyright © 2019 Pearson Canada Inc.
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LO3; Material pertinent to this discussion is found under “Process Theories of Motivation.”
This is a good exhibit to use in class. Ask students questions like:
-What if I asked you to write a paper?
-A book?
-To change the oil in your car?
-To build a car?
Have them relate their responses in terms of expectancy theory.
24
Importance of Providing Performance Feedback
An effective performance review:
Employee perceives the appraisal as fair
Manager is sincere
Climate is constructive
Performance review should be more like a counselling activity than a judgment process, allowing the review to evolve out of the employee’s own self-evaluation.
Copyright © 2019 Pearson Canada Inc.
4 – ‹#›
LO4; Material pertinent to this discussion is found under “Process Theories of Motivation.”
25
Goal-Setting Theory (1 of 2)
The theory that specific and difficult goals lead to higher performance.
Goals tell an employee what needs to be done and how much effort will need to be expended.
Specific goals increase performance.
Difficult goals, when accepted, result in higher performance than do easy goals.
Feedback leads to higher performance than does non-feedback.
Specific hard goals produce a higher level of output than does the generalized goal of “do your best.”
The specificity of the goal itself acts as an internal stimulus.
Copyright © 2019 Pearson Canada Inc.
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LO4; Material pertinent to this discussion is found under “Process Theories of Motivation.”
26
Management by Objectives
A program that encompasses:
Specific goals (tangible, verifiable, and measurable)
Participative decision-making
Explicit time period
Performance feedback
Copyright © 2019 Pearson Canada Inc.
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LO4; Material pertinent to this discussion is found under “Process Theories of Motivation.”
Management by objectives (MBO) emphasizes employee participation in setting goals that are tangible, verifiable, and measurable. The idea was originally proposed by Peter Drucker more than forty years ago as a means of using goals to motivate people rather than to control them. Its appeal lies in its emphasis on converting overall organizational objectives into specific objectives for organizational units and individual members. The model conceptualizes a “cascading” of objectives down through the organization.
For the individual employee, MBO provides specific personal performance objectives.
MBO is a popular technique found in business, health care, educational, government, and non-profit organizations. Failures are often the result of unrealistic expectations regarding results, lack of top management commitment, and an inability or unwillingness by management to allocate rewards based on goal accomplishment.
27
How Does Goal Setting Motivate?
Goals:
Direct attention
Regulate effort
Increase persistence
Encourage the development of strategies and action plans
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LO4; Material pertinent to this discussion is found under “Process Theories of Motivation.”
28
Goals Should Be SMART
For goals to be effective, they should be SMART:
Specific
Measurable
Attainable
Results-oriented
Time-bound
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LO4; Material pertinent to this discussion is found under “Process Theories of Motivation.”
SMART goals are very popular in the business world, so you might have students work at remembering the acronym.
29
Locke’s Model of Goal Setting
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LO4; Material pertinent to this discussion is found under “Process Theories of Motivation.”
30
Goal-Setting Theory (2 of 2)
People differ in how they regulate their thoughts and behaviours during goal pursuit.
Promotion focus – strive for advancement and accomplishment, and approach conditions that move them closer toward desired goals
Prevention focus – strive to fulfill duties and obligations and avoid conditions that pull them away from desired goals
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LO4; Material pertinent to this discussion is found under “Process Theories of Motivation.”
31
Self-Efficacy Theory
Also known as social cognitive theory and social learning theory
An individual’s belief that he or she is capable of performing a task
The higher your self-efficacy the more confident you are in your ability to succeed in a task
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LO4; Material pertinent to this discussion is found under “Process Theories of Motivation.”
32
Four Ways to Improve Self-Efficacy
Enactive mastery
Gaining relevant experience
Vicarious modelling
Confidence gained by seeing someone else perform the task
Verbal persuasion
Confidence gained because someone convinces you that you have the necessary skills to succeed
Arousal
An energized state can drive a person to complete the task
Copyright © 2019 Pearson Canada Inc.
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Material pertinent to this discussion is found under “Process Theories of Motivation.”
33
Joint Efforts of Goals and Self-Efficacy on Performance
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Material pertinent to this discussion is found under “Process Theories of Motivation.”
34
Reinforcement Theory
Behaviour is a function of its consequences
Skinner suggested that people learn how to behave to get something they want or to avoid something they don’t want.
This idea is known as operant conditioning:
Behaviour is influenced by the reinforcement or lack of reinforcement brought about by the consequences of the behaviour.
Copyright © 2019 Pearson Canada Inc.
4 – ‹#›
LO4; Material pertinent to this discussion is found under “Motivating Employees Through Reinforcement.”
35
Methods of Shaping Behaviour
Positive reinforcement
Following a response with something pleasant
Negative reinforcement
Following a response by the termination or withdrawal of something unpleasant
Punishment
Causing an unpleasant condition in an attempt to eliminate an undesirable behaviour
Extinction
Eliminating any reinforcement that is maintaining a behaviour
Copyright © 2019 Pearson Canada Inc.
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LO4; Material pertinent to this discussion is found under “Motivating Employees Through Reinforcement.”
There are four ways in which to shape behaviour.
Exhibit 4-10 on the next slide gives examples of each type of reinforcement.
36
Types of Reinforcement
EXHIBIT 4-10 Types of Reinforcement
Reinforcement Type Example
Positive reinforcement A manager praises an employee for a job well done.
Negative reinforcement An instructor asks a question and a student looks through her lecture notes to avoid being called on. She has learned that looking busily through her notes prevents the instructor from calling on her.
Punishment A manager gives an employee a two-day suspension from work without pay for showing up drunk.
Extinction An instructor ignores students who raise their hands to ask questions. Hand-raising becomes extinct.
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LO4; Material pertinent to this discussion is found under “Motivating Employees Through Reinforcement.”
37
Schedules of Reinforcement (1 of 2)
The two major types of reinforcement schedules are continuous and intermittent.
Continuous reinforcement: reinforces desired behaviour each and every time it is demonstrated
Intermittent reinforcement: ratio or interval type
The individual is reinforced after giving a certain number of specific types of behaviour.
The individual is reinforced on the first appropriate behaviour after a particular time has elapsed.
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LO4; Material pertinent to this discussion is found under “Motivating Employees Through Reinforcement.”
See Exhibit 4-11 Schedules of Reinforcement, on slide 40.
38
Fixed and Variable Reinforcements
A reinforcement can also be classified as fixed or variable.
Fixed-interval schedule
Variable-interval schedule
Fixed-ratio schedule
Variable-ratio schedule
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LO4; Material pertinent to this discussion is found under “Motivating Employees Through Reinforcement.”
Fixed-interval schedule: The reward is given at fixed time intervals.
Variable-interval schedule: The reward is given at variable time intervals.
Fixed-ratio schedule: The reward is given at fixed amounts of output.
Variable-ratio schedule: The reward is given at variable amounts of input.
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Schedules of Reinforcement (2 of 2)
EXHIBIT 4-11 Schedules of Reinforcement
Reinforcement Schedule Nature of Reinforcement Effect on Behaviour Example
Continuous Reward given after each desired behaviour Fast learning of new behaviour but rapid extinction Compliments
Fixed-interval Reward given at fixed time intervals Average and irregular performance with rapid extinction Weekly paycheques
Variable-interval Reward given at variable time intervals Moderately high and stable performance with slow extinction Pop quizzes
Fixed-ratio Reward given at fixed amounts of output High and stable performance attained quickly but also with rapid extinction Piece-rate pay
Variable-ratio Reward given at variable amounts of output Very high performance with slow extinction Commissioned sales
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LO4; Material pertinent to this discussion is found under “Motivating Employees Through Reinforcement.”
40
Responses to the Reward System
Equity Theory
Fair Process and Treatment
Self-Determination Theory
Increasing Intrinsic Motivation
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LO5; Material pertinent to this discussion is found under “Responses to the Reward System.”
Note: This is an introductory slide. Additional slides follow which provide speaking notes for each of the theories listed above.
41
Equity Theory (1 of 2)
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LO5; Material pertinent to this discussion is found under “Responses to the Reward System.”
42
Equity Theory (2 of 2)
Equity theory recognizes that individuals are concerned not only with the absolute amount of rewards for their efforts, but also with the relationship of this amount to what others receive.
Individuals compare their job inputs and outcomes with those of others and then respond so as to eliminate any inequities.
Copyright © 2019 Pearson Canada Inc.
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LO5; Material pertinent to this discussion is found under “Responses to the Reward System.”
43
Equity Comparisons
Self-inside
An employee’s experiences in a different position inside his or her current organization.
Self-outside
An employee’s experiences in a situation or position outside his or her current organization.
Other-inside
Another individual or group of individuals inside the employee’s organization.
Other-outside
Another individual or group of individuals outside the employee’s organization.
Copyright © 2019 Pearson Canada Inc.
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LO5; Material pertinent to this discussion is found under “Responses to the Reward System.
44
Responses to Inequity
Change their inputs.
Change their outcomes.
Adjust perceptions of self.
Adjust perceptions of others.
Choose a different referent.
Leave the field.
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LO5; Material pertinent to this discussion is found under “Responses to the Reward System.”
• Change their inputs (for example, don’t exert as much effort).
• Change their outcomes (for example, individuals paid on a piece-rate basis can increase their pay by producing a higher quantity of units of lower quality).
• Adjust perceptions of self (for example, “I used to think I worked at a moderate pace but now I realize that I work a lot more slowly than everyone else”).
• Adjust perceptions of others (for example, “Mike’s job isn’t as desirable as I previously thought it was”).
• Choose a different referent (for example, “I may not make as much as my brother-in-law, but I’m doing a lot better than my dad did when he was my age”).
• Leave the field (for example, quit the job).
45
Fair Process and Treatment (1 of 2)
Equity theory is an important precursor to the study of organizational justice: an overall perception of what is fair in the workplace.
Employees evaluate how fairly they are treated along four dimensions:
Distributive justice
Procedural justice
Informational justice
Interpersonal justice
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LO6; Material pertinent to this discussion is found under “Responses to the Reward System.”
46
Fair Process and Treatment (2 of 2)
Employees are concerned with what they receive:
Distributive justice: perceived fairness of the amount and allocation of resources among individuals.
Employees are also concerned about how outcomes are distributed:
Procedural justice: perceived fairness of the process used to determine the distribution of rewards
Informational justice: degree to which employees are provided truthful explanations for decisions
Interpersonal justice: degree to which employees are treated with dignity and respect
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LO6; Material pertinent to this discussion is found under “Responses to the Reward System.”
47
Model of Organizational Justice
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LO6; Material pertinent to this discussion is found under “Responses to the Reward System.”
48
Self-Determination Theory (1 of 2)
People prefer to feel they have control over their actions
If a previously enjoyed task feels more like an obligation than a freely chosen activity, it will undermine motivation.
Much research on self-determination theory in OB has focused on cognitive evaluation theory.
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LO7; Material pertinent to this discussion is found under “Responses to the Reward System.”
49
Self-Determination Theory (2 of 2)
The introduction of extrinsic rewards for work effort that was previously rewarded intrinsically will tend to decrease the overall level of a person’s motivation.
Intrinsic Motivators
A person’s internal desire to do something, due to such things as interest, challenge, and personal satisfaction.
Extrinsic Motivators
Motivation that comes from outside the person, such as pay, bonuses, and other tangible rewards.
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LO7; Material pertinent to this discussion is found under “Responses to the Reward System.”
50
Four Key Rewards to Increase Intrinsic Motivation (1 of 2)
Sense of choice
Sense of competence
Sense of meaningfulness
Sense of progress
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LO7; Material pertinent to this discussion is found under “Responses to the Reward System.”
Managers can act in ways that will build these intrinsic rewards for their employees.
51
Four Key Rewards to Increase Intrinsic Motivation (2 of 2)
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LO7; Material pertinent to this discussion is found under “Responses to the Reward System.”
52
Motivation for Whom?
Who benefits from theories of motivation?
They help managers get more productivity from employees
Little concern with employees beyond improvements to productivity
Researchers propose organizations have a moral obligation to make workplaces better for employees and provide meaningful work
Focus on improving conditions of workplace
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LO8; Material pertinent to this discussion is found under “Motivation for Whom?”
53
Putting It All Together
What we know about motivating employees in organizations:
Recognize individual differences.
Employees have different needs.
Don’t treat them all alike.
Spend the time necessary to understand what’s important to each employee.
Use goals and feedback.
Allow employees to participate in decisions that affect them.
Link rewards to desired performance.
Check the system for equity.
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4 – ‹#›
LO9; Material pertinent to this discussion is found under “Motivation for Whom?”
54
Global Implications
Needs Theories
Theories align with Canadian and US cultures, but not all
Goal Setting
Setting specific, difficult, individual goals may have different effects in different cultures.
Equity Theory and Fairness
Equity means different things to different cultures
Intrinsic and Extrinsic Motivation
Cultural differences in manager’s perception of employee motivation.
Cross-Cultural Consistencies
Don’t assume that there are no cross-cultural consistencies.
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LO9; Material pertinent to this discussion is found under “Global Implications”
55
Summary
Recognize individual differences
Goals and feedback help motivate individuals
Rewards signal what is important to the employer (or leader)
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Material pertinent to this discussion is found at the end of the chapter.
56
OB at Work: For Review (1 of 2)
What are the three key elements of motivation?
What are some early theories of motivation? How applicable are they today?
What are the key tenets of expectancy theory?
What are the key principles of goal-setting theory, self-efficacy theory, and reinforcement theory?
Why do equity and fairness matter in the workplace?
Copyright © 2019 Pearson Canada Inc.
4 – ‹#›
Material pertinent to this discussion is found at the end of the chapter.
57
OB at Work: For Review (2 of 2)
How is organizational justice a refinement of equity theory?
How do the predictions of self-determination theory apply to intrinsic and extrinsic rewards?
What are some of the ethical issues with motivation theories?
What is the essence of what we know about motivating employees?
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4 – ‹#›
Material pertinent to this discussion is found at the end of the chapter.
58
OB at Work: For Managers
Consider goal-setting theory: Clear and difficult goals often lead to higher levels of employee productivity.
Consider how reinforcement theory applies to the quality and quantity of work, persistence of effort, absenteeism, tardiness, and accident rates.
Consult equity theory to help you understand productivity, satisfaction, absence, and turnover variables.
Expectancy theory offers a powerful explanation of performance variables such as employee productivity, absenteeism, and turnover.
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Material pertinent to this discussion is found at the end of the chapter.
59
Breakout Group Exercises (1 of 2)
Form small groups to discuss the following topics:
One of the members of your team continually arrives late for meetings and does not turn drafts of assignments in on time. Choose one of the available theories and indicate how the theory explains the member’s current behaviour and how the theory could be used to motivate the group member to perform more responsibly.
You are unhappy with the performance of one of your instructors and would like to encourage the instructor to present more lively classes. Choose one of the available theories and indicate how the theory explains the instructor’s current behaviour. How could you as a student use the theory to motivate the instructor to present more lively classes?
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Material pertinent to this discussion is found at the end of the chapter.
60
Breakout Group Exercises (2 of 2)
Harvard University recently changed its grading policy to recommend to instructors that the average course mark should be a B. This was the result of a study showing that more than 50 percent of students were receiving an A or A− for coursework. Harvard students are often referred to as “the best and the brightest,” and they pay $27 000 (US) for their education, so they expect high grades. Discuss the impact of this change in policy on the motivation of Harvard students to study harder.
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Material pertinent to this discussion is found at the end of the chapter.
61
Organizational Behaviour: Concepts, Controversies, Applications
Eighth Canadian Edition
Chapter 5
Motivation in Action
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Chapter Outline (1 of 3)
From Theory to Practice: The Role of Money
Creating Effective Reward Systems
What to Pay: Establishing a Pay Structure
How to Pay: Rewarding Individuals through Variable-Pay Programs
Flexible Benefits: Developing a Benefits Package
Intrinsic Rewards: Employee Recognition Programs
Beware the Signals That Are Sent by Rewards
Can We Eliminate Rewards?
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
Material pertinent to this discussion is found under “SnapShot Summary” at the end of the chapter.
2
Chapter Outline (2 of 3)
Motivating by Job Redesign
The Job Characteristics Model
Job Redesign in the Canadian Context: The Role of Unions
How Can Jobs Be Redesigned?
Relational Job Design
Alternative Work Arrangements
Flextime
The Social and Physical Context of Work
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
Material pertinent to this discussion is found under “SnapShot Summary” at the end of the chapter.
3
Chapter Outline (3 of 3)
Employee Involvement
Examples of Employee Involvement Programs
Linking Employee Involvement Programs and Motivation Theories
Motivation: Putting It All Together
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
Material pertinent to this discussion is found under “SnapShot Summary” at the end of the chapter.
4
Learning Outcomes (1 of 2)
Demonstrate how the different types of variable-pay programs can increase employee motivation.
Show how flexible benefits can be used to motivate.
Identify the motivational benefits of intrinsic rewards.
Describe the job characteristics model and why it motivates.
Compare the main ways jobs can be redesigned.
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
Material pertinent to this discussion is found at the beginning of the chapter.
5
Learning Outcomes (2 of 2)
Explain how specific alternative work arrangements can motivate employees.
Describe how employee involvement programs can motivate employees.
Describe how knowledge of what motivates people can be used to make organizations more motivating.
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
Material pertinent to this discussion is found at the beginning of the chapter.
6
From Theory to Practice: The Role of Money
Money is the most commonly used reward in organizations.
Money certainly helps needs get met.
A 2010 survey of Canadian employees found that 46% believed they were underpaid.
But, money is not the top priority for many employees.
Many emphasize relationships in the workplace.
Developing rewards programs is a complex process.
Consider the value individuals place on specific rewards.
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO1; Material pertinent to this discussion is found under “From Theory to Practice: The Role of Money.”
7
Creating Effective Reward Systems
Although pay is not the primary factor driving job satisfaction, it does motivate people
As pay is important, organizations must consider:
Whether they will lead, match, or lag the market
How individual contributions will be recognized
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO1; Material pertinent to this discussion is found under “Creating Effective Reward Systems.”
8
What to Pay: Establishing a Pay Structure
Setting pay levels requires a balance between external and internal equity
Internal equity – the worth of the job to the organization (job evaluation)
External equity – the competitiveness of an organization’s pay relative to industry standards
Setting pay levels (above, at, or below market rates) is a key strategic decision with important trade-offs
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO1; Material pertinent to this discussion is found under “Creating Effective Reward Systems.”
9
How to Pay: Rewarding Individuals Through Variable-Pay Programs
Many firms are moving towards variable-pay programs
A portion of an employee’s pay is based on some individual and/or organizational measure of performance.
Individual-based
Piece-rate wages
Merit-based pay
Bonuses
Skill-based pay
Group-based
Gainsharing
Organizational-based
Profit sharing
Employee stock ownership plans (ESOPs) and stock options
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO1; Material pertinent to this discussion is found under “Creating Effective Reward Systems.”
Note: This is the introductory slide to further details in future slides on these concepts.
10
Variable-Pay Programs
Individual-Based Incentives
Piece-rate pay plans
Pay a fixed sum for each unit of production completed.
Merit-based
Pay is based on performance appraisal ratings
Bonuses
One-time rewards for defined work rather than ongoing entitlements
Skill-based pay
Pay based on how many skills employees have or how many jobs they can do (see next slide)
Group-Based Incentives
Gainsharing
Focus on productivity gains
Improvements in group productivity determine the rewards to be shared.
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO1; Material pertinent to this discussion is found under “Creating Effective Reward Systems.”
11
Skill-Based Pay: An Alternative to Job-Based Pay
Pay levels are set based on how many skills employees have or how many jobs they can do
Also known as competency-based or knowledge-based pay
Skill-based pay helps to increase workforce flexibility
Filling staffing needs is easier when employee skills are interchangeable
Communication can also be improved
On the other hand, skill-based pay can lead to problems
Does not address the level of performance
Employees may acquire skills for which there is no immediate need
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO1; Material pertinent to this discussion is found under “Creating Effective Reward Systems.”
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Variable Pay Programs: Organizational-Based Incentives
Profit-Sharing Plans
Organization-wide programs that distribute compensation based on some established formula designed around a company’s profitability
Employee Stock Ownership Plans (ESOPs) and Stock Options
Company-established benefit plans in which employees acquire stock as part of their benefits
Stock options give employees the right to buy stocks in the company at a later date for a guaranteed price
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO1; Material pertinent to this discussion is found under “Creating Effective Reward Systems.”
13
Flexible Benefits: Developing a Benefits Package
A Flexible Benefits plan permits each employee to create a compensation package to suit their individual needs
Replaces the “one-benefit-plan-fits-all” approach
Selections based on marital status, age, spouses’ benefits status, number of dependents, etc.
Three most popular benefit plans:
Modular plans
Core-plus plans
Flexible spending accounts
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO2; Material pertinent to this discussion is found under “Creating Effective Reward Systems.”
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Intrinsic Rewards: Employee Recognition Programs
Employee recognition programs
from private “thank you” to high profile recognition
According to expectancy theory, the key component of motivation is the link between performance and reward
Using reinforcement theory, providing recognition immediately following positive behaviour leads to repetition.
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO3; Material pertinent to this discussion is found under “Creating Effective Reward Systems.”
15
Beware the Signals That Are Sent by Rewards
Reward systems often do not reflect organizational goals:
Individuals are unable to break out of old ways of thinking about rewards and recognition practices
Stick to rewarding things that can be easily measured.
Organizations don’t look at the big picture of their performance system
Subunits compete with each other.
Management and shareholders focus on short-term results.
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO3; Material pertinent to this discussion is found under “Creating Effective Reward Systems.”
16
Management Reward Follies
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO3; Material pertinent to this discussion is found under “Creating Effective Reward Systems.”
Perhaps more often than we would like, organizations engage in what has been called “the folly of rewarding A, while hoping for B.”
A recent survey suggests that three themes seem to account for some of the biggest obstacles in dealing with the folly. First, individuals are unable to break out of old ways of thinking about reward and recognition practices. This is demonstrated in such things as an emphasis on quantifiable behaviours, to the exclusion of non-quantifiable behaviours; employees having an entitlement mentality (i.e., they don’t support changing the reward system because they are comfortable with the current behaviours that are rewarded), and management being reluctant to change the existing performance system. A second factor is that organizations often don’t look at the big picture of their performance system. Consequently, rewards are allocated at subunit levels, with the result that units often compete against each other. Finally, both management and shareholders often focus on short-term results, rather than rewarding employees for planning for longer ranges.
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Can We Eliminate Rewards?
Alfie Kohn suggests that organizations should focus less on rewards, more on creating motivating environments:
Abolish incentive pay
Re-evaluate evaluation
Create conditions for authentic motivation
Encourage collaboration
Enhance content
Provide choice
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO3; Material pertinent to this discussion is found under “Creating Effective Reward Systems.”
Abolish incentives: Pay people generously and fairly, make sure people don’t feel exploited, and then make sure that pay is not on their minds.
Re-evaluate evaluation: Rather than making performance appraisals look and feel like a punitive effort—who gets raises, who gets promoted, who is told they’re performing poorly—the performance evaluation system might be structured more like a two-way conversation to trade ideas and questions, done continuously, not as a competition.
Create the conditions for authentic motivation: A noted economist recently summarized the evidence about pay for productivity as follows: “Changing the way workers are treated may boost productivity more than changing the way they are paid.”
Collaboration: People are more likely to perform better in well-functioning groups where they can get feedback and learn from each other.
Content: People are generally the most motivated when their jobs give them an opportunity to learn new skills, provide variety in the tasks that are performed, and enable them to demonstrate competence.
Choice: “We are most likely to become enthusiastic about what we are doing—and all else being equal, to do it well—when we are free to make decisions about the way we carry out a task.”
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Motivating by Job Redesign
Job Design
The way the elements in a job are organized can act to increase or decrease effort
Also suggests what those elements in the job are
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO4; Material pertinent to this discussion is found under “Motivating by Job Redesign.”
Managers have several options at their disposal if they want to redesign or change the makeup of employee jobs.
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The Job Characteristic Model
The Job Characteristic Model (JCM) can describe any job in terms of five core job dimensions
Skill variety
Task identity
Task significance
Autonomy
Feedback
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO4; Material pertinent to this discussion is found under “Motivating by Job Redesign.”
20
Examples of High and Low Job Characteristics
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO4; Material pertinent to this discussion is found under “Motivating by Job Redesign.”
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The Job Characteristics Model
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO4; Material pertinent to this discussion is found under “Motivating by Job Redesign.”
22
Motivating Potential Score
Can combine the core dimensions into a single predictive index, called the motivating potential score (MPS), which is calculated as follows:
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO4; Material pertinent to this discussion is found under “Motivating by Job Redesign.”
23
How Can Jobs Be Redesigned?
Job Rotation
Periodic shifting of workers from one task to another with similar skill requirements at the same organizational level
Reduces boredom, increases motivation, and helps employees understand how their work contributes to the organization
Job Enrichment
The vertical expansion of jobs
Employee does a complete activity
Expands the employee’s freedom and independence
Increases responsibility, and provides feedback so individuals can assess and correct their own performance
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO5; Material pertinent to this discussion is found under “Motivating by Job Redesign.”
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Relational Job Design
How to make jobs more pro-socially motivating
How can managers design work so employees are motivated to promote the well-being of the organization’s beneficiaries?
Beneficiaries include customers, clients, patients
View of job design shifts focus from employee to those whose lives are affected by the job
How can this be done?
Better connect employees with the beneficiaries of their work
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO5; Material pertinent to this discussion is found under “Motivating by Job Redesign.”
25
Alternative Work Arrangements
Flextime
Employees work a set amount of hours but have some flexibility
Core period for all + flexible set of hours determined by workers
Job Sharing
Two or more people splitting a 40-hours-a-week job
Telecommuting
Employees work from home at least two days a week
Employees have access to smartphones, tablets, and other mobile computing devices.
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO6; Material pertinent to this discussion is found under “Motivating by Job Redesign.”
26
Examples of Flextime Schedules
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO6; Material pertinent to this discussion is found under “Motivating by Job Redesign.”
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The Social and Physical Context of Work
Policies such as job rotation, employee empowerment, and employee participation have positive effects on productivity, at least partially because they encourage more communication and a positive social environment.
Social characteristics include interdependence, social support, and interactions with other people
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO6; Material pertinent to this discussion is found under “Motivating by Job Redesign.”
28
Employee Involvement
Employee Involvement
Participative process that uses employees’ input to increase their commitment to the organization’s success
Examples of employee involvement programs
Participative management
Representative participation
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO6; Material pertinent to this discussion is found under “Employee Involvement.”
29
Motivation: Putting It All Together
What motivates people?
How can we use this information to make sure that organizational processes motivate our employees?
Four basic emotional drives (needs) guide people:
Drive to Acquire
Met through organizational rewards
Drive to Bond
Promoted through commitment to teamwork, friendship & openness
Drive to Comprehend
Based on effective job design
Drive to Defend
Based on performance management & resource allocation process
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO8; Material pertinent to this discussion is found under “Motivation: Putting It All Together.”
30
How To Fulfill the Drives That Motivate Employees
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
LO8; Material pertinent to this discussion is found under “Motivation: Putting It All Together.”
31
Summary
Money is not a motivator for all individuals.
Effective reward systems link pay to performance.
Jobs characterized by variety, autonomy, and feedback are more motivating.
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
Material pertinent to this discussion is found at the end of the chapter.
32
OB at Work: For Review (1 of 2)
What is variable pay? What variable-pay programs are used to motivate employees? What are their advantages and disadvantages?
How can flexible benefits motivate employees?
What are the motivational benefits of intrinsic rewards?
What is the job characteristics model? How does it motivate employees?
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
Material pertinent to this discussion is found at the end of the chapter.
33
OB at Work: For Review (2 of 2)
What are the main ways that jobs can be redesigned? In your view, in what situations would one of the methods be favoured over the others?
What are the three alternative work arrangements of flextime, job sharing, and telecommuting? What are the advantages and disadvantages of each?
What are employee involvement programs? How might they increase employee motivation?
How can motivation theories be used to create more motivating work environments?
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
Material pertinent to this discussion is found at the end of the chapter.
34
OB at Work: For Managers (1 of 2)
Recognize individual differences: Spend the time necessary to understand what is important to each employee. Design jobs to align with individual needs and maximize their motivation potential.
Give employees firm, specific goals, and provide them with feedback on how well they are doing in pursuit of those goals.
Allow employees to participate in decisions that affect them. Employees can contribute to setting work goals, choosing their own benefits packages, and solving productivity and quality problems.
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
Material pertinent to this discussion is found at the end of the chapter.
35
OB at Work: For Managers (2 of 2)
Link rewards to performance and ensure that employees perceive the link between the two.
Check the system for equity. Employees should perceive that experience, skills, abilities, effort, and other obvious inputs explain differences in performance and hence in pay, job assignments, and other obvious rewards.
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
Material pertinent to this discussion is found at the end of the chapter.
36
Breakout Group Exercises
Form small groups to discuss the following:
How might the job of student be redesigned to make it more motivating?
What is your ideal job? To what extent does it match up with the elements of the job characteristics model (JCM)?
Would you prefer working from home or working at the office? Why?
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
Material pertinent to this discussion is found at the end of the chapter.
37
From Concepts to Skills: Designing Enriched Jobs
Combine tasks
Increases skill variety and task identity
Create natural work units
Increases employee “ownership” of the work and improves the likelihood that employees will view their work as meaningful and important
Establish client relationships
Increases skill variety, autonomy, and feedback for the employee
Expand jobs vertically
Seeks to partially close the gap between the “doing” and the “controlling” aspects of the job
Open feedback channels
Copyright © 2019 Pearson Canada Inc.
5 – ‹#›
Material pertinent to this discussion is found at the end of the chapter.
This slide can be used to debrief the exercise, showing what can be done to enrich the job.
38
(
)
Skill varietyTask identityTask significa
nce
AutonomyFeedback
3
++
´´
MotivatingPotentialScoreMPS
=
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Concepts, Controversies, ·
Eighth
Canadian
Edition
• •
an1za 1ona
•
e av1our
Concepts, Controversies, Applications
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Concepts, Controversies, Applications
Nancy Langton
Un iversity of British Columbia
Stephen P. Robbins
San D iego State University
Timothy A. Judge
University of Notre Dame
1) Pearson
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9780134645858
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Li bra r y and Archives C ana d a Cataloguing in Public ation
R o bbins, Stephen P., 1943- , autho r O rganizational behaviour : concepts, controversies, applications I N ancy Langton
(U niversity o f British Columbia), Stephen P. R obbins (San Diego State U niversity), Timothy A. J udge
(U niversity o f Notre D aine) – 8th Canadian ed.
Includes index.
ISBN 978-0 – 13 -464585-8
1. O rganizational behavior-Textbo oks. 2. M anagem ent-Textbooks. l. Lan gton, N a ncy, author
II. Judge, Tim, author Ill. Title.
Q E28 .2.T37 201 1 550 C 2010 – 905691- 4
‘i> Pearson
•
BRIEF CONTENTS
PART 1 Understanding the Workplace
CHAPTER 1
CHAPTER 2
CHAPTER 3
What Is Organ izationa l Behaviour?
Perception, Personal ity, and Emotions
Va lues, Attitudes, and Divers ity in the Workplace
OB ON THE EDGE Stress at Work
PART 2 Striving for Performance
PART 3
CHAPTER 4 Theories of Motivation
CHAPTER 5 Motivation in Action
CHAPTER 6 Groups and Tea mwork
OB ON THE EDGE Trust
Interacting Effectively
CHAPTER 7
CHAPTER 8
CHAPTER 9
Com munication
Power and Pol itics
Conflict and Negotiation
OB ON THE EDGE Workplace Bu llying
PART 4 Sharing the Organizational Vision
CHAPTER 10 Organizationa l Culture
CHAPTER 11 Leadership
CHAPTER 12 Dec ision Making, Creativity, and Ethics
OB ON THE EDGE Sp iritua lity in the Workplace
PART 5 Reorganizing the Workplace
CHAPTER 13 Organizationa l Structure
CHAPTER 14 Organizationa l Change
ADDITIONAL CASES
ENDNOTES
GLOSSARY/SUBJECT INDEX
NAME AND OR GANIZATION IND EX
LIST OF CANADIAN COMPANIES, BY PROVINCE
520
548
610
629
638
2
2
36
80
116
124
124
162
198
240
246
246
274
310
344
350
350
382
414
450
456
456
490
CONTENTS
PART 1
PREFACE
ABOUT THE AUTHORS
Unde rstanding the Workplace
CHAPTER 1 What Is Organ izational Behaviou r?
The Importance of Interpersonal Skills
Defining Organizational Behaviour
What Do We Mean by O rga niz atio n?
OB Is for Eveiyone
Complementing Intuition with Systematic Study
Big Data
Discip lines That Contribute to the OB Field
The Building Blocks of OB
The Rigour of OB
OB Has Few Absolutes
OB Taf1es a Contingency Approach
Challenges and Opportun ities in the Canadian Workplace
Economic Pressures
Continuing Globalization
Understanding Worf1force Diversity
Customer Service
People Skills
Networked Organizations
Social Media
Enhancing Employee Well-Being at Work
Creating a Positive Work Environment
Ethical Behaviour
Coming Attractions: Developing an OB Model
An Overview
Inputs
Processes
Outcomes
Summary
08 at Work FOR REVIEW • FOR MANAGERS • FOR YOU
POINT/COUNTIRPOINT: The Battle of the Texts
BREAKOUT GROUP EXERCISES
EXPERIENTIAL EXERCISE: Manag ing the OB \,\fay
ETHICAL DILEMMA: There’s a Drone in Your Soup
CASE INCIDENT: Apple Goes Global
CASE INCIDENT: Big Data for Dummies
FROM CONCEPTS TO SKILLS: Developing /111erpersonal Skills
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Contents vii
CHAPTER 2 Perception , Personality, and Emotions 36
Perception 38
Factors That Influence Perception 38
Perceptual Errors 39
Why Do Perception and Judgment Matter? 46
Person ality 47
What Is Personality? 47
Measuring Personality 47
Personality Determinants 48
Personality Traits 48
The Dark Triad 54
Other Personality Attributes That Influence OB 56
Situation Strength Theory 59
Emotions 60
What Are Emotions and Moods? 60
Moral Emotions 6 1
Choosing Emotions: Emotional Labour 62
Why Should We Care About Emotions in the Workplace? 63
Global Implications 68
Perception 68
Attributions 69
Personality 69
Emotions 69
Summary 70
OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU 72
POINT/COUNTIRPOINT: Sometimes Yelling Is for Everyone’s Good 73
BREAKOUT GROUP EXERCISES 74
EXPERIENTIAL EXERCISE: \,\’ho Om Catch a Liar? 74
ETMICAL DILEMMA: Happiness Coaches for Employees 74
CASE INCIDENT: The Power of Quiet 75
CASE INCIDENT: Tall Poppy Syndrome 76
FROM CONCEPTS TO SKILLS: Rending Emotions 77
CHAPTER 3 Values, Attitudes, and Diversity in the Workplace 80
Va lues 82
Rokeach Value Survey 82
Hodgson’s General Mora l Principles 83
Assess ing Cultural Va lues 83
Hofstede’s Framework for Assessing Cultures 83
The GLOBE Framework for Assessing Cultures 86
Va lues in the Canadian Workplace 86
Generational Differences 86
Cultural Differences 88
Attitudes 89
Job Satisfaction 90
Organizational Comm itment 96
Job Involvement 96
Perceived Organizational Support 97
Employee Engagement 98
Managing Divers ity in the Workplace 99
Effective Diversity Programs 100
Cultural Intelligence 103
v iii Contents
PART 2
Global Implications 106
ls Job Satisfaction a North American Concept? 106
Are Emplo)’ees in Western Cultures More Satisfied with Their Jobs? 106
ls Diversity Managed Different!)’ across Cultures? 107
Summary 107
08 at Work
DB ON THE EDGE Stress at Work
Striving for Performance
FOR REVIEW • FOR MANAGERS • FOR YOU
POINT/COUNTIRPOINT: Millem,ials Haiie Inflated Images
of 11,emselves Compared to Their Parents
BREAKOUT GROUP EXERCISES
EXPERIENTIAL EXERCISE: Feel ing Excluded
ETMICAL DILEMMA: Tell-All Websites
CASE INCIDENT: Job Crafting
CASE INCIDENT: Walking the Walk
FROM CONCEPTS TO SKILLS: Changing Attitudes
CHAPTER 4 Theo ries of Motivation
What Is Motivation?
Needs Theories of Motivation
Maslow’s Hierarchy of Needs Theory
Trvo· Factor Theory
McClelland’s Theory of Needs
Summarizing Needs Theories
Process Theories of Motivation
Expectancy Theor)’
Goal-Setting Theory
Self-Efficacy Theory
Reinforcement Theory
Respon ses to the Reward System
Equity Theory
Fair Process and Treatment
Self-Determination Theory
Increasing Intrinsic Motivation
Motivation for Whom?
Job Engagement
Putting It All Together
Global Implications
Needs Theories
Goal-Setting Theory
Equity Theory and Fairness
Justice
Intrinsic and Extrinsic Motivation
Cross-Cultural Consistencies
Summary
08 at Work FOR REVIEW • FOR MANAGERS • FOR YOU
POINT/COUNTIRPOINT: Coals Get You to ~\’here You Want to Be
BREAKOUT GROUP EXERCISES
EXPERIENTIAL EXERCISE: OrganiZlltional Justice
ETHICAL DILEMMA: The New CPA
CASE INCIDENT: &Juity and Executi,ie Pay
CASE INCIDENT: Wage Reduction Proposal
FROM CONCEPTS TO SKILLS: Setting Coals
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Content s ix
CHAPTER 5 Motivation in Action 162
From Theory to Practice: The Role of Money 164
Creating Effective Reward Systems 164
What to Pay: Establishing a Pay Structure 164
How to Pay: Rewarding Individuals through Variable-Pay Programs 165
Flexible Benefits: Developing a Benefits Package 170
Intrinsic Rewards: Employee Recognition Programs 171
Beware the Signals That Are Sent by Rewards 172
Motivating by Job Redesign 17 4
The Job Characteristics Model 17 4
Job Redesign in the Canadian Context: The Role of Unions 177
How Can Jobs Be Redesigned? 177
Relational Job Design 178
Alternative Work Arrangements 180
Flextime 180
Employee Involvement and Participation 184
Examples of Employee Involvement Programs 185
Linf1ing Employee Involvement Programs and Motivation Theories 186
Motivation: Putting It All Together 186
Global Implications 186
Variable Pay 18 7
Flexible Benefits 18 7
Job Characteristics and Job Enrichment 187
Telecommuting 188
Employee Involvement 188
Summary 188
OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU
POINT/COUNTIRPOINT: ‘Face-Time’ Matters
BREAKOUT GROUP EXERCISES
EXPERIENTIAL EXERCISE: Anal)’zing and Redesigning Jobs
ETMICAL DILEMMA: Are CEOs Paid Too Much?
CASE INCIDENT: Motivation for Leisure
CASE INCIDENT: Pay Rnises Every Day
FROM CONCEPTS TO SKILLS: Designing Enriched Jobs
CHAPTER 6 Groups and Teamwork
Teams vs. Groups: What Is the Difference?
Why Have Teams Become So Popular?
Types of Teams
From Individual to Team Member
Roles
Norms
Stages of Group and Team Develop ment
The Five-Stage Model
The Punctuated-Equilibrium Model
Creating Effective Teams
Context
Composition
Team Processes
Beware! Teams Are Not Always the Answer
Global Implications
Team Cultural Diversity and Team Performance
Group Cohesiveness
Summary
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x Contents
PART 3
OB at Wo rk FOR REVIEW • FOR MANAGERS • FOR YOU 233
POINT/COUNTIRPOINT: To Get 11ie Most Out of Teams, Empower Them 234
BREAKOUT GROUP EXERCISES 235
EXPERIENTIAL EXERCISE: 71ie Paper Tower Exercise 235
ETMICAL DILEMMA: Dealing wi1h Shirkm 235
CASE INCIDENT: Tongue-Tied in Teams 236
CASE INCIDENT: lntragroup TniSI and Suroival 237
FROM CONCEPTS TO SKILLS: Omducting a Team Meeting 238
OB ON THE EDGE Trust 240
Interacting Effectively
CHAPTER 7 Com mun ication
The Commun ication Process
Choosing a Channel
Barriers to Effective Commu nication
Filtering
Selective Perception
Information Overload
Emotions
Language
Silence
Lying
Organizationa l Communication
Direction of Communication
Small-Group Networks
The Grapevine
Modes of Co mm un ication
Oral Communication
Written Communication
Nonverbal Communication
Global Implications
Cultural Barriers to Communication
Cultural Context
A Cultural Guide
Su mmary
OB at Wo rk FOR REVIEW • FOR MANAGERS • FOR YOU
POINT/COUNTIRPOINT: Employees’ Social Media Presence
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Should Matter 10 Managers 268
BREAKOUT GROUP EXERCISES 269
EXPERIENTIAL EXERCISE: An Absence of Nonverbal Comm1mica1ion 269
ETHICAL DILEMMA: BYOD 269
CASE INCIDENT: Organiza1ional Leveraging of Social Media 270
CASE INCIDENT: PowerPoi111 Purga1ory 271
FROM CONCEPTS TO SKILLS: Effective LiSlening 272
CHAPTER 8 Power and Politics
A Definition of Power
Bases of Power
Formal Power
Personal Power
Which Bases of Power Are Most Effective?
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Dependence: The Key to Power
The General Dependence Post11late
What Creates Dependence?
Influence Tactics
Abo11t Infl11ence Tactics
Applying Infl11ence Tactics
How Power Affects People
Power Variables
Harassment: Une411al Power in the Workplace
Empowerment: Giving Power to Employees
Definition of Empowerment
Politics: Power in Action
Definition of Political Behavio11r
The Rea.lity of Poli tics
Impression Management
The Ethics of Behaving Politically
Global Implications
Views on Empowerment
Preference for Infl11ence Tactics
Su mmary
OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU
POINT/COUNTIRPOINT: EVl!T),me Wants Power
BREAKOUT GROUP EXERCISES
EXPERIENTIAL EXERCISE: Comparing Influence Tactics
CTHICAL DILEMMA: How Much Should You Defer to Those in Power!
CASE INCIDENT: Delegate Power; or Keep It Close!
CASE INCIDENT: Barry’s Peer Becomes His Boss
FROM CONCEPTS TO SKILLS: Politicking
CHAPTER 9 Conflict and Negotiation
Conflict Defined
F11nctional vs. Dysf11nctiona.l Conflict
Types of Conflict
Loci of Conflict
So11rces of Conflict
Conflict Resolution
Conflict Management Strategies Based on Dual Concern Theory
What Can lndivid11als Do to Manage Conflict?
Resolving Persona.lity Conflicts
Conflict Outcomes
Negotiation
Bargaining Strategies
How to Negotiate
Individual Differences in Negotiation Effectiveness
Personality Traits in Negotiation
Moods/Emotions in Negotiation
Gender Differences in Negotiation
Negotiatin g in a Social Context
Reputation
Relationships
Third-Party Negotiations
Mediator
Arbitrator
Contents xi
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xii Contents
PART 4
Conciliator
Global Implications
Conflict Resolution. and Culture
Cultural Differences in. Negotiating Style
Culture, Negotiations, and Emotions
Summary
OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU
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POINT/COUNTIRPOINT: Pro Sports Strikes Are Caused by Greedy Owners 338
BREAKOUT GROUP EXERCISES 339
EXPERIENTIAL EXERCISE: A Negot iation Role Play 339
ETMICAL DILEMMA: The Lowba/1 Applicant 340
CASE INCIDENT: Disorderly Conduct 340
CASE INCIDENT: The Pros and Cons of Collective Bargai11ing 341
FROM CONCEPTS TO SKILLS: Negotiating 342
OB ON THE EDGE Worf1place Bullying 344
Sharing the Organizational Vision
CHAPTER 10 Organiza tional Cu lture
What Is Organizational Cu lture?
Culture Is a Descriptive Term
Do Organizations Have Uniform Cultures?
Strong us. Weak Cultures
Culture us. Formalization
What Do Cultures Do?
Culture’s Functions
Culture Creates Climate
The Ethical Dimension of Culture
Culture and Sustainability
Culture and Innovation
Culture as a Liability
Creati ng and Sustaining an Organization’s Culture
How a Culture Begins
Keeping a Culture Alive
How Employees Learn Cu lture
Stories
Rituals
Material Symbols
Language
Changing Organ izational Culture
Creating an Ethical Organizationa.l Culture
Creating a Positive Organizational Culture
Global Implications
Su mmary
OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU
POINT/COUNTIRPOINT: Orga11izntiom Should Stri,ie to Create
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a Positive Organizatio11al Cul111re 375
BREAKOUT GROUP EXERCISES 376
EXPERIENTIAL EXERCISE: Greeting Newcomers 376
ETMICAL DILEMMA: Culture of Deceit 377
CASE INCIDENT: The Place Makes the People 377
CASE INCIDENT: Active Cul111res 378
FROM CONCEPTS TO SKILLS: How to ‘ Read’ a11 Organization’s Culture 379
CHAPTER 11 Leadership
What Is Leaders hi p?
Leadershi p as Supervision
Trait Theories: Are Leaders Different from Others?
Behavioural Theories: Do Leaders Behave in Particular Ways?
Summary of Trait Theories and Behavioural Theories
Contingency Theories: Does the Situation Matter?
Inspirational Leadership
Charismatic Leadership
Transactional and Transformationa.l Leadership
Responsible Leadership
Authentic Leadership
Ethical Leadership
Servant Leadership
Mentoring
Challenges to Our Understanding of Leaders hip
Leadership as an Attribution
Substitutes for and Neutralizers of Leadership
Online Leadership
Global Implications
How to Lead
Servant Leadership
Summary
OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU
POINT/COUNTIRPOINT: Heroes Are Made, Not Bom
BREAKOUT GROUP EXERCISES
EXPERIENTIAL EXERCISE: \,\’hat ls Leadership!
CTHICAL DILEMMA: Smoki11g Success
CASE INCIDENT: Leaders/tip Mettle Forged i11 Battle
CASE INCIDENT: Leaders/tip by Algorithm
FROM CONCEPTS TO SKILLS: Practising to be Charismatic
CHAPTER 12 Decis ion Making, Creativity, and Ethics
How Should Dec isions Be Ma de?
The Rational Decision-Making Process
How Do Individuals Actua lly Make Decisions?
Bounded Rationality in Considering Alternatives
Intuition
Judgment Shortcuts
Group Decision Making
Groups vs. the Individ ua.l
Groupthink and Groupshift
Group Decision-Making Techniques
Creativity in Orga nizational Decision Making
Creative Behaviour
Causes of Creative Behaviour
Creative Outcomes (Innovation)
What About Ethics in Dec ision Making?
Four Ethical Decision Criteria
Making Ethical Decisions
Global Implications
Decision Making
Contents xiii
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x iv Contents
PART 5
Creativity
Ethics
Summary
OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU
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POINT/COUNTIRPOINT: People Are More Creative W/Je11 T/Jey \,\fork Alo11e 443
BREAKOUT GROUP EXERCISES 444
EXPERIENTIAL EXERCISE: \.Vildemess Survival 444
ETHICAL DILEMMA: Five Ethical Decisiom: Wltat Would You Do! 446
CASE INCIDENT: T/Je You11gest Female Self-Made Billio11aire 446
CASE INCIDENT: lf1ivo Heads Are Better 11ia11 011e, Are Four Eve11 Better! 447
FROM CONCEPTS TO SKILLS: Solvi11g Problems Creative/)’ 448
OB ON THE EDGE Spirituality in the Workplace 450
Reorganizing the Workplace
CHAPTER 13 Organizational Structure
What Is Organizational Structure?
Work Specialization
Departmentalization
Chain of Command
Span of Control
Centralization and Decentralization
Formalization
Boundary Spanning
Common Organizational Designs
The Simple Structure
The Bureaucracy
The Matrix Structure
Alternate Design Options
The Virtual Structure
The Team Structure
The Circular Structure
The Leaner Organization: Do111nsizing
Why Do Structures Differ?
Organizational Strategies
Organizational Size
Technology
Environment
Institutions
Organizational Designs and Employee Behaviour
Global Implications
Culture and Organizationa.l Structure
Culture and Emplo)’ee Structure Preferences
Culture and the Impact of Downsizing
Summary
OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU
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POINT/COUNTIRPOINT: Tlte E11d of Ma11ageme11t 484
BREAKOUT GROUP EXERCISES 485
EXPERIENTIAL EXERCISE: 71te Sa11dwiclt Sltop 485
ETHICAL DILEMMA: Post·Mille1111ium Te11s io11s i11 tlte Flexible Orga11izatio11 486
CASE INCIDENT: Creative Deviance: Bucking tlte Hieran;ltyl 486
CASE INCIDENT: ‘l Detest Bureaucracy’ 487
FROM CONCEPTS TO SKILLS: Delegating Autltorit)’ 488
CHAPTER 14 Organiza tional Change
Forces for Change
Opportunities for Change
Change Agents
Approaches to Managing Change
Lewin’s Three-Step Model
Kotter’s Eight-Step Plan for Implementing Change
Action Research
Appreciative Inquiry
Resistance to Change
Individual Resistance
Organizational Resistance
Overcoming Resistance to Change
The Politics of Change
Creating a Culture for Change
Managing Paradox
Stimulating a Culture of Innovation
Creating a Leaming Organiza.tion
Global Implications
Su mmary
OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU
Contents xv
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POINT/COUNTERPOINT: Orga11izational Clia11ge Is Like Saili11g Calm Waters 514
BREAKOUT GROUP EXERCISES 515
EXPERIENTIAL EXERCISE: Strategizing Change 515
ETHICAL DILEMMA: Cha11ges at the Television S1atio11 516
CASE INCIDENT: Sprnci11g Up Walmart 517
CASE INCIDENT: When Compa11ies Fail 10 C/Ja11ge 517
FROM CONCEPTS TO SKILLS: Carryi11g 0111 Organizatio11al Cha11ge 518
ADDITIONAL CASES 520
ENDNOTES 548
GLOSSARY/SUBJECT IN DEX 610
NAME AN D ORGAN IZATION IND EX 629
LIST OF CANADIAN COMPANI ES, BY PROVINCE 638
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PREFACE
Welcome lo the eighth Canadian edition of Organizacional Behaviour. Since its arrival
in Canada, Organizational Behaviour has enjoyed widespread acclaim across the country
for its rich Canadian con tent and has q uickly established iL~elf as the leading text in
the field.
Organizational Behaviour, Eighth Canadian edition, is truly a Canadian product. Whi le
it draws upon the strongest aspects of its American cous in, it expresses its own vision
and voice. It provides the context for understanding organ izational behaviour {OB) in
the Ca nadian workplace and high lights the many Canadian contributions to the field.
Indeed, it goes a step further than most OB texts prepared for the Canadian marketp lace.
Specifically, il asks, in many instances:
• How does th is theory apply in the Canadian \vorkplace of today?
• What are the implications of the theory for managers and employees working
in the twenty-first century?
• Wha t are the implica tions of the theory for everyday life? OB, after all, is not
someth ing that applies only in the workplace.
Th is text is sensitive to important Canad ian issues. Subject matter refl ects the broad
m ulticultural flavo ur of Canada a nd also h ighlights the ro les of women and v isible
minorities in the workplace. Examples reflect the broad range of organizations in
Canada : large, small, public and private sector, unionized and non-union ized.
Organizational Behaviour continues lo be a vibrant and relevant text because it’s a
product of the Canadian classroom. It is used in Canada by the first author and her col-
leagues. Thus, there is a •front-line” approach to considering revisions. We also solicit
considerable feedback from OB instructors and studenL~ throughout the country. While
we have kept the features of the previous edition that adopters continue lo say they like,
there is also a grea t deal that is new.
Key Changes to the Eighth Canadian Edition
The eighth edition was designed to evolve with today’s students. There are more relevant
examples, updated theory coverage, and a co ntinued emphasis on providing the latest
research findings. Based on reviews from numerous instr uctors and students across
Canada, we have found that many potential users want chapters that have the right bal-
ance of theory, research, and appl ication material, wh ile being relevant lo student learning.
• NEW feature in every chapter’ Career Objectives offers advice in a question-
and-answer format to help students think through issues they may face in the
workforce today.
• NEW Opening Vigneue in every chapter brings current b us iness trends and
events to the forefront.
• NEW key terms presented in bold throughout the text highlight new vocabu-
lary pertinent lo today’s s tudy of organizational behaviour.
• NEW photos and cap tio ns in every chapter link the chapter content to con-
temporary real-life worldwide situations to enhance the student’s understand-
ing of hands-on app lication of concepts.
xviii Preface
• NEW These fea tures are either completely n e,v o r s ubstantially updated
with in each chapter as applicab le to reflect ongoi ng challenges in b us iness
worldwide an d focus the student’s attention on new topics:
• Learning Objectives
• Exhibits
• Point/Counterpoint
• NEW The followi ng end-of-chapter material is eith er completely ne,v or sub-
stantially r evised and updated for each chapter to b ri ng the most contempo-
rary thi nking to the attentio n of students:
• Summary
• OB at Work: For Review
• OB at Work: For Managers
• Experiential Exercise
• Ethical Dilemma
• Case Incidents
Chapter-by-Chapter Changes
Chapter 1: What Is Organizational Behaviour?
• Revised Lean1ing 011tco1nes
• New Opening Vigneue (Target’s fa ilure in Canada)
• New research in Th e Importance of Interpersonal Skills
• New research in Big Data
• New feature! Career Objectives (What Do I Say About My Terminatio n?)
• New Point/Counterpoint (The Bat tle of the Texts)
• New Experiential Exercise (Managing the OB Way)
• New Ethical Dilemma (There’s a Drone in Your Soup)
• Updated Case Incident (Apple Goes Global)
• New Case Incident (Big Data for Dumm ies)
Chapter 2: Perception, Personality, and Emotions
• New Opening Vigneue (Michele Roman ow)
• New section in The Myers-Briggs Type Indicator
• New research and d iscussion in The Big Five Personality Model
• New sections on Big Five perso nality tra it research: Conscientious ness,
Emotiona l Stabi lity, Extraversion, Openness to Experience, and Agreeableness
• New research in The Dark Triad
• New major section: O ther Tra its ( on traits that are socially undesirab le)
• New research and d iscussion in Moral Emotions
Preface xix
• New research and d iscussion in Choosing Emo tions: Emo tional Labour
• New section: Emotion Regulation Techniques
• New feature! Career Objectives (So What If I’m a Few Minutes Late to Work?)
• New Point/ Counterpoint (Sometimes Yelling Is for Everyone’s Good)
• New Case Incident (The Power of Quiel)
• New Case Incident (Tall Poppy Syndrome)
Chapter 3: Values, Attitudes, and Diversity in the Workplace
• New Opening Vigneue (Lad ies Learning Code)
• New research in Wha t Causes Job Satisfaction?
• New section: Job Cond itions
• New section: Personality
• New section: Pay
• New section: Life Satisfaction
• New ma jor section: Counterproductive Work Behaviour (CWB)
• New feature! Career Objectives (Is ll Okay lo Be Gay at Work?)
• New Point/ Counterpoint (M illennia ls Have Inflated Images ofThemselves
Compared lo Their Parents)
• New Ethical Dilemma (Tell-All Websites)
• New Case Incident (Job Crafting)
• New Case Incident (Walking lhe Walk)
OB on the Edge: Stress at Work
• New Opening Vignette (workspaces are not for ea ting)
• Updated list of The Most and Least Stressful Jobs
• New research in Causes of Stress
• New research and d iscussion in Organizational Approaches
Chapter 4: Theories of Motivation
• Revised Lean1ing 011tco1nes
• New Opening Vigneue (Lee Valley Too ls)
• New research and d iscussion in Maslow’s Hierarchy of Needs Theory
• New international research and d iscussion in McClelland’s Theory of Needs
• New feature! Career Objectives (Why Won’t He Take My Advice?)
• New research and d iscussion in Self-De term ination Theory
• New Global Impl ications section: Justice
• New Ethical Dilemma (The New GPA)
xx Prefac e
Chapter 5: Motivation in Action
• New Opening Vignette (G Adventures)
• New research and d iscussion in Job Rotation
• New section and research in Relational Job Design
• New research in Flextime
• New feature! Career Objectives (How Can I Get Flextime?)
• New research and d iscussion in Telecommuting
• New in ternational research and discussion in Emp loyee Invo lvement and
Participation
• New research in Participative Management
• New research in Representative Participation
• New international research and new d iscussion in How lo Pay: Reward ing
Ind ividual Employees through Variable-Pay Programs
• New research in Merit-Based Pay
• New international research in Bonuses
• New research in Profit-Sharing Plans
• New research in Emp loyee Stock Ownership Plans
• New material and international research in Flexible Benefits: Developing a
Benefits Package
• New research in Intrinsic Rewards: Employee Recognition Programs
• New Case Incident (Pay Raises Every Day)
Chapter 6: Groups and Teamwork
• New Opening Vignette (Summerlunch+)
• New research and d iscussion in Why Have Teams Become So Popular?
• New d iscussion in Problem-Solving Teams
• New research in Cross-Functional Teams
• New research in Virtua l Teams
• New research and d iscussion in Mult iteam Systems
• New international research in Cl ima te ofTrust
• New material in Composit ion (of teams)
• New research and d iscussion in Personal ity of Members
• New section: Cu ltural Differences
• New section: Posit ive Norms and Group O utcomes
• New section: Negative Norms and Group Outcomes
• New section: Team Identity
• New section: Team Cohesion
• New in ternational research and discussion in Mental Models
• New international research and d iscussion in Conflict Levels
• New fea ture! Career Objectives ( Can I Fudge the Numbers and Not Take the Blame?)
• Revised Ethical Dilemma (Deal ing with Sh irkers)
• New Case Incident (Intragroup Trust and Survival)
OB on the Edge: Trust
• Revised section: What Can Leaders Do to Increase Trust?
• New d iscussio n in Bui lding Team Trust
• New ma jor section: The Need to Prevent Lying
Chapter 7: Communication
• Revised Lean1ing 011tco1nes
• New Opening Vigneue {Slack)
• New research in Downward Communication
• New research and d iscussion in The Grapevine
• New ma jor section: Modes of Communication
• New section: Oral Communication
• New section: Meeti ngs
• New section: Videoconferencing and Conference Call ing
• New section: Telephone
• New section: Wriuen Commu nication
• New section: Letters
• New section: PowerPo inl
• New research in Social Media
• New section: Apps
• New research in Biogs
• New feature! Career Objectives (Isn’t This Disability Too Much to
Accommodate?)
• New Ethical Dilemma (BYOD)
• Updated Case Incident {Organ izational Leveraging of Social Med ia)
Chapter 8: Power and Politics
• Revised Lean1ing 011tco1nes
• New Opening Vigneue (Jian Ghomeshi)
• New international research and d iscussion in Sexual Harassment
• New research in Impression Management
• New feature! Career Objectives {Should I Become Po litical?)
• New Experiential Exercise {Comparing Influence Tactics)
Pref ac e xxi
xxii Preface
Chapter 9: Conflict and Negoti ation
• New Opening Vignette (GM Canada and Unifor)
• New international research in Personal Variables
• New major section: Negotiating in a Social Context
• New research and d iscussion in Gender Differences in Negotiation
• New research in Conflict Resolution and Culture
• New feature! Career Objectives (How Can I Get a Better Job?)
• Revised For Managers
• New Point/ Counterpoint (Pro Sports Strikes Are Caused by Greedy Owners)
• New Case Incident (Disorderly Conduct)
OB on the Edge: Workplace Bullying
• New Opening Vignette (The Vancouver School Board)
• New research in Workplace Violence
• New research in the box Do You Have a Bad Boss7
• Updated statistics in What Are the Effects of Incivi lity and Toxici ty in the
Workplace?
Chapter 10: Organizational Culture
• Revised Lean1ing 011tco1nes
• New Opening Vignette (Hyatt Hotels)
• New d iscussion in What Is Organ izationa l Culture?
• New section: Cu lture and Sustainab ility
• Updated research in Culture and Innovation
• New section: Strengthening Dysfunctions
• New research in Barriers to Acquisitions and Mergers
• New feature! Career Objectives (How Do I Learn to Lead?)
• New Experiential Exercise (Greeti ng Newcomers)
• New Echical Dilemma (Culture of Deceit)
• New Case Incident (The Place Makes the People)
• New Case Incident (Active Cultures)
Chapter 11 : Leadership
• New Opening Vignette (Kelly Lovell)
• New international research in Tra il Theories: Are Leaders Different from Others?
• New research in What Is Charismatic Leadership?
• New research in Transactional and Transformational Leadersh ip
• New research in How Transformalional Leadership Works
• New section: Transformalional vs. Charismatic Leadersh ip
• New research in Servant Leadership
• New fealure! Career Objectives (How Can I Get My Boss to Be a Beiler Leader?)
• New Experiential Exercise (What Is Leadersh ip?)
• New Ethical Dilemma (Smoking Success)
• New Case Incident (Leadersh ip Mettle Forged in Battle)
Chapter 12: Decision Making, Creativity, and Ethics
• New Opening Vignette (TD Bank)
• New sections created wilh new research and d iscussion: Intell igence and
Creativity, Personality and Creativity, Expertise and Creativity, and Elhics and
Creativity
• New section: Crea tive Environment
• New international research and d iscussion in Four Elhica l Decis ion Criteria
• New fealure! Career Objectives (How Can I Make My Job Beller?)
OB on the Edge: Spirituality in the Workplace
• New Opening Vigneue (The Good Spiril)
• New research in Sp iriluality and Mindfulness
• New d iscussion in Achieving a Spiritual Organizalion
Chapter 13: Organizational Structure
• Updated Leaming Outcomes
• New Opening Vignette (Precis ion Nutrilion)
• New section: Boundary Spanning
• New section: The Functional Slructure
• New section: The Divisional Structure
• New section: The Team Slructure
• New section: The Circular Structure
• New section: Institutions
• New feature! Career Objeccives (Whal Slructure Should I Choose7)
• New Experiential Exercise (The Sandwich Shop)
• New Ethical Dilemma (Post-Millenn ium Tensions in lhe Flexib le Organization)
Chapter 14: Organizational Change
• New Opening Vigneue (Cirque du Soleil)
• New d iscussion in Forces for Change
Preface xxiii
• We have continued to integrate a series of relevant and helpful questions
throughout the chapters to encourage st udents to think about how OB
appl ies to their everyday lives and engage students in their reading of the
ma terial. These questions first appear as a bullet list in the chapter opener,
under the head ing OB Is fo r Everyone, and then appear throughout each
chapter.
• The Global Imp lications section addresses and h ighl ights how OB principles
vary across cultures.
• Summary provides a review of the key points of the chapter, whi le the Snap shot
Summary provides a study tool that helps students to see the overall connections
among concepts presented with in each chapter.
• Each chapter concludes with OB a t Work, a set of resources designed to help
students app ly the lessons of the chapter. Included in OB a l Work are the fo l-
lowing features:
• Fo r Revie,v poses a series of questio ns that are linked to the learning
outcomes identi fied in the chapter opener.
• Fo r Man agers o utlines ways that managers can apply OB in the
workp lace.
• Fo r You outlines how OB can be used by individ uals in their daily lives.
• Point/Counterpoint promotes debate on contentious OB issues. This
feature presents more focused arguments.
• Breakout Group Exercises, Experiential Exercise, and Ethical Dilemma
are valuable application exercises for the classroom. The many new exer-
cises included here are ones that we have found particularly stim ulating
in our own classrooms. Our s tudents say they like these exercises and
they learn from them.
• Case Incidents (two per chapter) dea l with real-world scenarios and
require studen ts to exercise their decis ion-making skills. Each case
enab les an instructor to quickly generate class d iscussion o n a key theme
within the chap ter.
• From Concepts to Skills provides a wide range of appl ications for stu-
dents. The section begins w ith a practical set of tips on topics such as
read ing emotio ns, setting goals, and so lving problems creatively, wh ich
demonstrate real-world applica tions of OB theories. These tips are fol-
lowed by the fea tures Practising Skills and Reinforcing Skills. Practising
Sliills presents an additional case or group activity to apply the chapter’s
learn ing outcomes. Reinforcing Skills asks students to talk about the
ma terial they have learned with others, or to apply it to their own per-
sonal experiences.
• Exclusive to the Canadian edition, OB o n the Edge (followi ng each part)
takes a close look at some of the hottest topics in the field: work-related stress,
trust, behavioural pathologies that can lead to workplace bullying, and sp iri-
tua lity in the workplace. Since this is a stand-alone fea ture, these topics can be
introduced at the instructor’s discretion.
• Our reviewers have asked for more cases, and more comprehensive and inte-
grated cases. To address this request, we have included 10 Addi tional Cases
that feature a variety of challenges and organ izations. All of these cases requ ire
students to apply material from a variety of chapters.
Prefac e xxv
xxvi Preface
Supplements
Mylab Management
My Lab Management is an onl ine study tool for students and an online homework and
assessment Loo i for faculty. MyLab Management lets students assess their understand-
ing through auto-graded tests and assignments, develop a personal ized study plan to
address areas of weakness, and practise a variety of learning tools to master management
princip les. New and updated MyLab Managemen t resources include the fo llowing:
• Personal Inventory Assessment (PIA). Students learn beuerwhen they can con-
nect what they are learning to their personal experience. PIA is a collection
of online exercises designed lo promote self-refl ection and engagement in
students, enhancing their ab ility lo connect with concepts taught in principles
of management, organizational behavio ur, and h uma n resource management
classes. Assessments can be assigned by instructors, who can then track stu-
dents’ completions. Student results include a wrillen explana tion along with a
graphic d isplay that shows how their results compare to the class as a whole.
Instructors will also have access to this graph ic representation of resu lts lo pro-
mote classroom d iscussion.
• Updated Personalized Study Plan. As students work through MyLab Man age-
ment’s Study Plan, they can clearly see wh ich topics they have mastered- an d,
more importantly, which they need lo work on. Each question has been care-
fully wrillen to match the concepts, language, and focus of the text, so students
can get an accurate sense of how well they’ve understood the chapter content.
• MediaShare. Consisting of a curated collection of videos and customizable, auto-
scored assignments, MediaShare h elps students u nderstand why they are learn-
ing key concepts and how they will apply those in their careers. Instructors can
also assign favorite YouTube clips or original content and employ MediaShare’s
powerful repository of tools to maximize student accountabi lity and interac-
tive learning, and provide contextualized feedback for students and teams who
upload presentations, media, or business plans.
• NEW Mini-Simulations. New Mini-Simulations walk students through key
business decision-maki ng scenarios to help them understand how manage-
ment decisions are made. Students are asked to make important decisions
relating to core business concepts. Al each point in the simulatio n, students
receive feedback to help them understand the implications of their cho ices
in the ma nagement enviro nment. These simulatio ns can now be assigned by
instructors and graded directly through MyLab Management.
• Learning Catalytics. learn ing Calalytics is a “bring your own device• student
engagement, assessment, an d classroom intelligence system. IL allows instruc-
tors to engage s tudents in class with a variety of q uestion types designed lo
gauge student understa nd ing.
• Assignable l111ini-Cases and Video Cases. Instructors have access to a variety
of case-based assessment material that can be assigned to students, with
multiple-choice q uizzes or wrillen-response format in MyLab Management’s
Writing Space.
• Lesson Presentations. Students can study key chapter top ics and work through
in teractive assessments to test their knowledge and mastery of concepts. Each
presentation all ows students to explore through expertly designed s teps of
read ing, practising, a nd testing lo ensure that s tuden ts not only experience the
content but a lso truly engage with each topic. Instructors also have the abil ity
to assign quizzes, projects, and follow-up d iscussion questions relating lo the
online lessons to further develop the valuable learning experiences from the
presentations.
• Dynamic Study Modules. These study modules allow s tudents to work through
groups of questions and check their understanding of foundat ional manage-
ment topics. As studen ts work through questions, the Dynamic Study Modules
assess their knowledge and only show questions that s till require practice.
Dynamic Study Modu les can be comp leted online using a computer, tab let, or
mobile device.
• Pearson eText: My Lab Management also includes an eText version of Organi-
zational Behaviour, including a complete Glossary and Index. This dynamic,
online version of the lexl is integrated throughout MyLab Management to cre-
ate an enriched, interactive learning experience for students. Users can create
notes, h ighl ight text in d ifferent co lours, create bookmarks, zoom, and cl ick
hyperl inked words and phrases to view defin itions and go directly lo web-
links. The Pearson eText allows qu ick navigation to key parts of the eText using
a tab le of contents and provides full-text search.
Most of the follow ing materials are available for download from a password-protected
section of Pearson Canada’s onl ine catalogue (hllp://www.pearsoncanada.ca/ highered) .
Navigate lo your text’s catalogue page to view a list of those supplements that are avail-
able. Contact your local sales representative for details and access.
• Instructor’s Resource Manual . Each chapter of the Inslructor’s Resource Manual
includes a chapter outl ine, learning outcomes, chapter synopsis, study ques-
tions, suggested teaching plan, annotated lecture outl ines, answers toques-
tions found under OB at Work’s For Review, a summary and analysis of Point/
Counterpoint features, comments on end-of-chap ter exercises, notes on lhe
Case Incidents and From Concepts to Skills, and key terms.
• Computerized Test Bank. The Test Bank contains over 1800 items, includ ing
multiple-choice, true/ false, and d iscussion questions that relate not only to
the body of the text bul to From Concepts to Shills, Point/Counterpoint, and case
materials. For each question, we have provided the correct answer, a refer-
ence to the relevant section of the text, a d ifficu lty rating, and a classification
(recall/ appl ied) . Pearson’s compu terized test banks allo\v instructors to filter
and select questions lo create quizzes, tests, or homework. Instructors can
revise questions or add their own, and may be able to choose print or online
options. These questions are also available in Microsoft Word formal.
• PowerPoint Presentation. A ready-lo-use PowerPoint slideshow designed for
classroom presentation. Use it as is, or edit content to fit your ind ividua l class-
room needs.
• Image Gallery. This package provides instructors with images lo enhance their
teaching.
Learning Solutions Managers. Pearson’s Learning Solutions Managers work with faculty
and campus course designers lo ensure that Pearson technology products, assessmen t
tools, and online course materials are tailored to meet your specific needs. This highly
qual ified team is dedicated to helping schools take full advantage of a wide range of
educational resources, by assisting in the integration of a variety of instructional materi-
als and media formats. Your local Pearson Education sales representative can provide
you with more details on th is service program.
Preface xxvii
xxvii i Preface
Acknowledgments
A number of peop le worked hard lo give this eighth Canad ian edition of Organizational
Behaviour a new look.
I received incredible support for this project from a variety of people at Pearson
Canada. The three people who worked hardest to keep this project on track were
Jenn ifer Murray, Content Developer, Claudia Forgas, Production Ed itor, and Jess ica
Mifsud, Project Manager. All three were extremely supportive and helpful. Jennifer sup-
plied a number of great ideas for examples and vigneues, never complained when I was
late with chapters, and she provided much needed cheerfulness at some of the most
d ifficu lt parts of th is project. I can’t thank her enough for her dedication lo the task.
Claud ia Forgas was the Production Ed itor for the project. Claud ia has worked on
a number of my projects and s till continues lo amaze for how well she makes sure
everything is in p lace and written clearly. Claudia provided a wealth of support, great
ideas, and goodwill throughou t the production process. Turn ing the manuscript into
the text you ho ld in your hands could not have happened without her inspired leader-
sh ip. She was extremely diligent about checking for consistency throughout the text and
performed a number of helpful fact-checking activities. Her keen eyes helped lo make
these pages as clean as they are. I am grateful for the opportunity lo work with her again.
There are a variety of other people al Pearson who also had a hand in making sure
that the manuscript wou ld be transformed in to th is book and then delivered to you.
To all of them I extend my thanks. I know the Pearson sales team will do everything
possible lo make this book successful.
I a lso wanl to acknow ledge my d iv is ional secretary, Nancy Tang, who helps keep
me on track in a variety of ways. I cou ld nol ask for a beuer, more dedicated, or more
cheerful assistant. She really helps keep things together.
In our continuing effort to improve the text, we have conducted many reviews to
el icit feedback over the years and editions. Many thanks to severa l students from the
Northern Alberta Institute ofTechnology (NAIT) who provided us with suggestions for
improving the text The students are Barb Kosak, Prudence Musinguzi, Andres Sarrate,
and Robert Tucci . Student input helps keep the materia l fresh and alive.
Finally, I wanl to acknowledge the many reviewers of this text for their detailed,
helpful commen ts. I appreciate the lime and care that they pu l into their reviewing.
The reviewers include Nancy Breen (Nova Scotia Community College), Sabrina Deutsch
Salamon (York Un iversity), Harold Ekstein (George Brown College), Leah Hami lton
(Mount Royal University), Shari Ann Herrmann (Kwanllen Polytechnic University),
Puneet Luthra (Seneca Co llege), Jody Merrill (University of Windsor), John Predyk
(Vancouver Island Univers ity), Wayne Rawcliffe (Univers ity of British Co lumb ia),
Sandra Steen (University of Regina), and SujayVardhmane (George Brown College) .
ABOUT THE AUTHORS
Nancy Langton received her Ph.D. from Stanford Un iversity. Since completing
her graduate studies, Dr. Langton has taught at the Un iversity of Oklahoma and the
University of British Col umbia. Currently a member of the Organ izational Behaviour
and Human Resources d ivision in the Sauder School of Business, UBC, she teaches
at the undergraduate, MBA, and Ph.D. leve ls and conducts executive programs on
attracting and retaining employees, lime managemen t, fami ly business issues, as well
as women and management issues. Dr. Langton has received several major three-year
research grants from the Social Sciences and Humanities Research Counci l of Canada,
and her research interests have focused on human resource issues in the workplace,
including pay equity, gender equity, and leadership and commun ication styles. Her
articles on these and ot her top ics have appeared in such journals as Adm.inistrative
Science Quarterly, American Sociological Review, Sociological Quarcerly, Journal of Man –
agement Education, and Gender, Work and Organizations. She has won Best Paper com-
mendations from both the Academy of Management and the Adm inistrative Sciences
Association of Canada.
Dr. Langton routinely wins high marks from her students for teach ing. She has been
nominated many times for the Commerce Undergraduate Society Awards, and has won
several honourable mention p laques. She has also won the Sauder Schoo l of Business’s
most prestigious award for teaching innovation, The Talking Stick. The award was given
for Dr. Langton’s redesign of the undergraduate organ izational behaviour course as
well as the many activities that were a sp in-off of these efforts. She was also part of the
UBC MBA Core design team that won the Alan Blizzard award, a national award tha t
recognizes innova tion in teaching. More recently, she was acknowledged by the Sauder
School of Business for her development of the Sauder Africa Initiative, which took her
to Kenya with UBC students to help young people in the s lums of Nairobi write busi-
ness plans.
In Dr. Langton’s • other life: she engages in the artistry of quiltmaking, and one
day hopes 10 win firs t prize at Visions, the juried sho\v for quilts as works of art. More
recently, she has been working at mastering the art of photography, creating abstract art
using segments of real objects. When she is not designing qu ills or taking photographs,
she is e ither reading novels recommended by her book club colleagues or studying
cookbooks for new ideas. All of her fr iends would say that she makes the best p izza
from scra tch in all of Vancouver, and one has even offered to supp ly venture cap ita l to
open a p izza parlour.
xxx About the Authors
Stephen P. Robbins
Education
Ph .D., Un iversity of Arizona
Professional Experience
Academ ic Positio ns : Professor, San Diego Stale University, Southern Ill inois University
al Edwardsville, University of Ba ltimore, Co ncord ia Un iversity in Montrea l, and
University of Nebraska at Omaha.
Research : Research in terests have focused o n co nflict, power, and po litics in organ i-
zatio ns; behavioural decision maki ng; an d the developmen t of effective interpersonal
ski lls.
Boo ks Published : World’s best-selli ng author of textbooks in both management and
organizational behaviour. His books have sold more than 5 mill io n copies and have
been translated into 20 languages; editions h ave been adapted for Canada, Austral ia,
South Africa, an d Ind ia, such as these:
• Essentials of Organizational Behavior, 14th ed. (Pearson, 2017)
• Management, 14th ed. with Mary Coulter (Pearso n, 2017)
• Fundamentals of Human Resource Management, 11th ed., with David Decenzo
(Wiley, 2012)
• Prentice Hall’s Self-Assessment Library 3.4 (Prentice Hall, 2010)
• Fundamentals of Managenient, 9th ed., with David DeCenzo and Mary Coulter
(Pearson, 2014)
• Supervision Today! 8th ed ., with David Decenzo a nd Robert Wolter (Pearson,
2014)
• Training in Interpersonal Skills: TIPS for Managing People at Worli, 6th ed., with
Phill ip Hunsaker (Prentice Hall, 2012)
• Managing Today! 2nd ed. (Prentice Hall, 2000)
• Organization Theory, 3rd ed . (Prentice Hall, 1990)
• The ThJth About Managing People, 4th ed. (Pearson Ff Press, 2014)
• Decide and Conquer: Make Winning Decisions and Take Control of Your Life
(Fi nancial Times/Prentice Hall, 2004)
Other Interests
In his •other l ife,• Dr. Robb ins actively participates in masters’ track competition.
After t urning 50 in 1993, he won 18 national champ ionsh ips a nd 12 world titles.
He is the current world record h older at 100 metres ( 12.37 seconds) a nd 200 metres
(25 .20 seconds) for men 65 and over.
Timothy A. Judge
Education
Ph.D., University of Illino is al Urbana-Champaign
Professional Experience
Academic Positions: Franklin D. Schurz Cha ir, Departmen t of Management, Mendoza
College of Business, University of Notre Dame; Visiting Distinguished Adjunct Profes-
sor of King Abdu laziz University, Saudi Arabia; Vis iting Professor, Divis ion of Psychol-
ogy & Language Sciences, Un iversity College London; Matherly-McKethan Em inent
Scholar in Management, Warrington College of Business Administration, University of
Florida; Stan ley M. Howe Professor in Leadersh ip, Henry B. Tippie College of Business,
University of Iowa; Associate Professor ( with tenure), Deparunent of Human Resource
Studies, School of Industrial and Labor Relations, Cornell University; Lecturer, Charles
University, Czech Republic, and Comen ius University, Slovakia; Instructor, Indus-
trial/Organizational Psychology, Department of Psychology, University of Il lino is at
Urbana-Champaign.
Research: Dr. Judge’s primary research interests are in {l) personality, moods, and
emo tions; (2) job altitudes; (3) leadership and influence behaviours; and {4) careers
(person-organization fit, career success) . Dr. Judge has published more than 145 articles
on these and other ma jor top ics in journals such as Journal of Organizational Behavior,
Person11el Psychology, Academy of Management Journal, Jo11n1al of Applied Psychology, Euro-
pean Journal of Personality, and Eu.ropea11 Journal of Work and Organizat.ional Psychology.
Fellowsh ip : Dr. Judge is a fellow of the American Psychological Association, the
Academy of Management, the Society for Industrial and Organizational Psychology,
and the American Psychological Society.
A,vards: In 1995, Dr. Judge received the Ernest J. McCorm ick Award for Distinguished
Early Career Contributions from the Society for Industrial and Organizational Psychol-
ogy. In 2001, he received the Larry L. Cummings Award for mid-career contributions
from the Organ izational Behavior Division of the Academy of Management. In 2007,
he received the Professional Practice Award from the Inslilule of Industria l and Labor
Relations, University of Illino is. In 2008, he received the University of Florida Doctoral
Mentoring Award. And in 2012, he received the Editorial Board of the European Jounial
of Work and Orga11izatio11al Psychology (EJWOP) best paper of the year award.
Oth er Books Pub lished : H. G. Heneman Il l, T. A. Judge, and J. D. Kammeyer-
Mueller, Staffi11g Organizatio11s, 8th ed. (Mishawaka, IN: McGraw-Hill Education, 2014 ).
Other Interests
Although he canno t keep up (literally!) with Dr. Robbins’ accomplishments on the
track, Dr. Judge enjoys gol f, cooking and baking, literature (he’s a particu lar fan of
Thomas Hardy and is a member of the Thomas Hardy Society), and keeping up with
his three ch ildren.
A bout th e Aut hors xxxi
2
What Is Organizational
Behaviour?
PA RT 1
UNDERS TAND I NG
THE WORKP LACE
How can people
skills help you run a
successful business?
O Demonstrate the importance of interpersonal skills in the workplace.
f) Define organizational behaviour (OB).
f) Understand the value of systematic study to OB.
C, Identify the major behaviou ral science disciplines that contribute to OB.
0 Demonstrate why few absolutes apply to OB.
O Identify workplace challenges that provide opportunities to apply OB concepts.
f) Describe the three levels of analysis in this book’s OB model.
n 2011 , American
retail giant Target
0
bought the leases REUTERS/llen Nelms
of the entire Zellers
chain, with the goal to open 124 locations in Canada during 2013.1 There was much excitement among Canadian
consumers who had been to Target in the States, and who wished something like it existed in Canada. Target was very
successful in the United States, and apparently thought it could bring that success easily to Canada.
The first stores were set to open in March 2013. Almost from the beginning things did not go well. The
shelves were often empty, and the items advertised for sale in weekly flyers were nowhere to be found.
Consumers became frustrated almost from the start. In the rush to get stores opened, new staff did not
receive enough training, the software for monitoring stock supplies was not working properly, and the
company had not adequately assessed how quickly the company would be able to adjust to having
a Canadian presence.
The challenges that organizations such as Target face illustrate several concepts you will
learn about as you study the field of organizational behaviour. Let’s take a look, then, at
what organizational behaviour is.
• Does job satisfaction really make a difference?
\ I I
‘ , : ;, :
,V,
, ‘
TI-IE BIG IDEA
• Why do some people do well in organizational settings while others have
difficulty?
• Do you know what a “typical” organization looks like?
• What people-related challenges have you noticed in the workplace?
• Why should you care about understanding other people?
• Are you ready to take on more responsibility at work?
OB helps 1nanagers and
employees 1nake sense
of the ,vorkplace and
also applies to \vork in
groups of all kinds.
3
4 Part 1 Understanding the Workplace
O Demonstrate the impor-
tance of interpersonal
skills in the workplace.
The Importance of Interpersonal Skills
Unti l the late 1980s, business schoo l curricula emphasized the techn ica l aspects of
management, focus ing on economics, accounting, finance, and quantitative techniques.
Course work in human behaviour and people skills received less attention. Since then,
however, business schoo ls have realized the significant role interpersona l ski lls play
in determ ining a manager’s effectiveness. In fact, a survey of over 2100 CFOs across
20 industries ind icated that a lack of interpersonal skills is the lop reason why some
employees fai l to advance.2
Incorporating OB principles into the workplace can yield many important organi-
zational ou tcomes. For one, companies known as good p laces lo work in 2017- such
as Toronto-based Royal Bank of Canada (RBC); SL John, New Brunswick-based Irving
O il; Bedford, Nova Scotia-based Clearwater Seafoods; Winnipeg-based Aboriginal
Peoples Te levision Ne twork; Regina-based SaskTel; Calgary-based Agrium, and
Vancouver-based West FraserTimber3- have been found to generate superior financia l
performance.4 Second, developing managers’ interpersonal skills helps organizations
attract and keep h igh-performing emp loyees, which is important since outstanding
employees are always in short supply and are costly lo replace. Th ird, there are s trong
associations between the qual ity of workplace rela tionships and employee job satisfac-
tion, stress, and turnover. One very large survey of hundreds of workp laces and more
than 200 000 respondents showed that social relationships among co -workers and
supervisors were strongly related to overall job satisfaction. Positive socia l relation-
sh ips were also associated w ith lower stress at work and lower intentions to quit.5
Further research indicates that employees who relate lo their managers w ith sup-
portive dia logue and proactivity find that their ideas are endorsed more often, which
improves workplace satisfaction.6 Fourth, increasing the OB e lement in organizations
can foster social respons ibil ity awareness. Accordingly, universities have begun to
incorporate socia l entrepreneurship education into their curriculum in order to train
future leaders to address social issues within their organizations. 7 This is especially
important because there is a growing need for understanding the means and outcomes
of corporate social responsibility, known as CSR.8
Indigo CEO Heather Reisman has the interpersonal skills required to succeed in management. Communi-
cation and leadership skills d istinguish managers such as Reisman, who rise to the top of their profession.
Chapter 1 What Is Organizational Behaviour? 5
We understan d that in today’s competilive and demand-
ing workp lace, managers can’t succeed on their techn ical
ski lls alone. Succeedi ng in the workplace also takes good
people skills. Th is book has been written to help managers
and emp loyees develop those people ski lls. To learn more
about the kinds of people skills needed in the workplace,
see the Experient.ial Exercise o n page 29 and From Concepts
to Skills-Developing Inrerpersonal Shills on pages 32 – 35 .
Defining Organizational Behaviour
Does job
satisfaction
really 1nake a
difference’?
As Target tried to deal with the failure of running its new stores in canada, problems within the
organization became increasingly obvious.9 While the Target Canada president was optimistic
throughout, he and his team suffered from groupthink. The CEO, based in Minneapolis, Min-
nesota, did not want to pay rent on empty stores longer than necessary. This put pressure on
senior management to keep going, rather than slow down and try to solve very real problems.
“Nobody wanted to be the one person who stopped the Canadian venture,” says a former
employee. ” It wound up just being a constant elephant in lhe room .”
Better knowledge of organiza tional behaviour might have helped management adj ust
to some of the problems Target was facing in Canada. Let’s look at what organizational
behaviour is.
Organizational b eh aviour ( often abbreviated as OB) is a field of study that looks at
the impact that indiv iduals, groups, and s tructure have on behaviour with in organ iza-
tio ns for the purpose of app lying such knowledge toward improving an orga nization’s
effectiveness. Because the organ izations studied are often b us iness organizations, OB
is often applied lo top ics such as job satisfaction, absenteeism, employment turnover,
productivi ty, human performance, and management. OB also exam ines the follow ing
core top ics, although debate exists about their relative importance: ID
• Motivation
• Leader behaviour and power
• Interpersonal communication
• Group structure and processes
• Altitude development and perception
• Change processes
• Conflict and negotiatio n
• Work design
Much of OB is relevant beyond the workplace. The
study of OB can cast light on the interactions among fam –
ily members, students working as a team on a class project,
the vol untary group that comes together to do someth ing
about reviving the downtown area, the parents wh o sit on
the board of their ch ildren’s daycare centre, or even the
members of a lunchtime pickup basketb all team.
What Do We Mean by Organization?
\>Vhy do sorne
people do ,Yell
in organiza-
tional settings
~vhile others
have di · culty’?
An organization is a consciously coordinated socia l unit, composed of a group of
people, that functions on a relatively continuous basis to ach ieve a common goal or
set of goals. Ma nufacturing a nd service firms are organizations, and so are schools,
f) Define organizational
behaviour (OB).
organizational behaviour A field
of study lhat investigates lhe impact
of indi\/iduals, groups, and structure
on behaviour within 0
people manage thei r t ime poorly.
The well-organ ized employee, like
the we ll-organ ized s tuden t, can
often accomplish twice as much as
the person who is poorly organized.
A few of t h e mo re well-known
time-managemen t techniques
are ( 1) main tain ing to-do lis ts,
(2) scheduling activi ties based on
p rio rities, not what you can accom-
p lish, (3) doing the hard tasks first,
and (4 ) b locking out d istraction-
free time to accomplish tasks. These
t ime-management skills can help
minimize procrasti nation by focus-
ing efforts o n immediate goals and
boosting motivation even in the face
of tasks that are less en joyable.42
• Physical activit)’. Physicians have rec-
ommended noncompetitive physical
exercise, such as aerobics, walking,
jogging, swimm ing, and rid ing a
bicycle, as a way to deal with exces-
sive stress levels. T h ese activities
decrea~e the detrimental physiologi-
cal responses to stress and allow us
to recover from stress more quickly. 43
• Relaxation techniques. Individuals
can teach themselves to reduce ten-
sion through re laxation techniques
such as med itation, hypnosis, and
d eep breathing. The object ive is to
reach a s ta te of deep relaxation, in
wh ich you focus all you r energy
on the re lease of muscle ten-
sio n.44 Deep relaxa tion fo r 15 o r
20 m inutes a day releases tens ion
and p rovides a p ronounced sense
of peacefulness, as well as sign ifi-
cant changes in heart rate, blood
pressure, a nd o ther p hys iological
factors. A growi ng body of research
s h ows tha t s imp ly taking b reaks
from work at routine intervals can
facilitate psychological recovery and
reduce stress significan tly and may
improve job performance, and these
effects are even greater if relaxation
techn iques are employed.45
• Social support. Having fr iends, fam-
ily, or colleagues to ta lk to provides
an outlet when s tress levels become
excess ive. Expand in g you r socia l
support network provides you w ith
someone to lis ten to your problems
a nd to offer a more ob jective per-
s pective on the si tuation.
The inset Tips for Reducing Stress offers
additional ideas fo r man aging stress.
Organizational
Approaches
t\>lont real-based CGI, a glo b al IT
com pany, delivers a comprehe nsive
corpora te wellness p rogram to its
68 000 em ployees worldwide th rough
iL~ Health Portal. Calgary-ba~ed Devon
Energy bu ilt The Well, a 1400-square-
metre well n ess and fi tness fac ility.
Employees can use the state-of-the-art
faci lity to ‘ improve overall wellness,
increase energy levels, reduce absentee-
ism, and effectively recruit and retain
staff. The t\>lani toba Teachers’ Society
created a wellness program based o n
teacher in put. The program helps
teach e rs manage stress, and allows
them to find time to take care of them-
selves. Balance initiatives include chair
massages, smooth ie delivery, a regular
magazine, and learn ing opportunities
on health and wellness topics.’46
Tlpe for Reducing Sbess
• SPend lime with supportive friends or family
• Talk Yourself through it. ·
• Make sure to get enough sleep.
• Engage in exercise hobbi . . .
tech . ‘ es. Pos1t1ve thinking, and reJaxar
niques such as meditation or yoga. 47 ion
121
tvlost fi rms that h ave in trod uced
wel l ness p rograms have found sig-
ni fi cant benefits. A recent join t study
conducted by Sun Life Fi n ancial and
the Richard Ivey Schoo l of Bus iness
found that in companies wi th well-
ness p rograms, employees m issed 1.5
to 1.7 fewer days due to absenteeism.
Th is resu lted in estimated savings of
$251 per employee per year. 48 Wh ile
many Canadian busines.~es report hav-
ing wellness in itiatives, only 24 percent
have “fully implemented wellness strat-
egies’ (which includes multi-year goals
and an evaluation of result~). accord-
ing to a recent survey.4 9
So wh a t can organ iza tions d o to
red uce emp loyee stress? In genera l,
s trategies to re d uce stress inclu d e
improved employee selection, p lace-
ment of employees in app ro p riate
jobs, realistic goal setting, design ing
jobs w ith employee needs and skills
in m ind, increased em ployee involve-
ment, i mproved organ izat iona l
commun ication, offering em p loyee
sabbaticals, and, as mentioned, estab-
lishment of corporate well ness pro-
grams.
Certa in jobs a re more s tres.~ful than
others, but ind ividua ls also d iffer in
their response to s tressful s ituations.
Vie know, fo r example, that ind ividu-
als w ith little experience or an exter-
na l locus of control tend to be more
prone to stress. Selection and p lace-
ment decisions should take these facts
into consideration. Although manage-
ment should not restrict hiring to only
experienced individuals with an inter-
nal locus of con trol, such ind ividuals
may a d apt better to high-stress jobs
and perfo rm t h ose jobs more effec-
tively. Sim ila rly, training can increase
an ind ividual’s self-efficacy and thus
lessen job strain.
Individ uals perfo rm better when
they have spec ific and challenging
122
goals and rece ive feedback on h ow
well they are progressing toward them.
Goals can reduce stres.~ as well as pro-
v id e mo tiva tion. so Em p loyees who
are h ighly comm itted to t h e ir goals
and see purpose in the ir jobs experi-
ence Jess s tress because they a re more
li ke ly to perce ive stresso rs as chal-
lenges rather than hind rances. Specific
goals that are perceived as atta inable
clar ify pe rformance expectations.
Add it ionally, goa l feedback reduces
uncerta inties as to actual job perfo r-
mance. The result is less em ployee frus-
tration, role amb iguity, and stress.
Redesign ing jobs to give employ-
ees more responsib ility, more mean-
ingful work, mo re au tonomy, and
increased feedback can reduce s tress
because these factors give the em ployee
greater contro l over work activ it ies
and Jessen dependence on others. Of
course, not all employees wan t jobs
with increased responsib ility. The right
design for em ployees with a low need
fo r growth migh t be less responsib ility
and increased specia lization. If individ-
uals p refer structure and routine, more
structured jobs should a lso reduce
uncertain ties and s tres.~ levels.
Ro le stress is detrimental to a large
extent because employees feel uncertain
about goals, expectations, how they will
be evaluated, and the like. By g ivi ng
employees a vo ice in the decisions that
d irectly affect thei r job performance,
managemen t can increase emp loyee
con tro l and reduce ro le stress. So
managers s h ou ld consider increasing
employee involvement in decision mak-
ing because evidence clearly shows that
increases in employee em powerment
reduce psychological s train _s1
Increasing formal organ iza tiona l
communica ti on wi th em pl oyees
reduces uncertainty by lessening role
amb igu ity and role confl ic t. Given
the importance that percep tions play
,n mode rat ing the stress-response
relations hip, managemen t can a lso
use effective commun icat ion as a
means to sha p e emp loyee percep-
tions. Remember that wha t emp loy-
ees categorize as demands, th reats,
or o p po rtun it ies at wo rk are merely
in te rp retations, and those in te rpreta-
tions can be affected by the symbols
and act ions commun icated by man-
agement.
Some employees need an occa-
siona l escape from the frenet ic pace
of their work. In recent years, compa-
nies such as American Express, Intel,
General Mills, Microsoft, Morn ingstar,
DreamWo rks Anima tion, and Adobe
Systems have begun to prov ide
extended voluntary leaves . 52 These
sabbaticals-ranging in length from a
few weeks to severa l months-allow
employees to travel, re lax, or pu r-
sue personal p ro jects tha t consume
time beyond normal vacation weeks.
Pro ponents say th a t these sabbaticals
can revive and rejuvenate employees
who might be headed fo r burnout.
Our final suggestion is to offer
o rganiza tionally supported wellness
programs. T h ese typ ically p rovide
workshops to help people qu it smok-
ing. control alcohol use, Jose weigh t,
eat better, an d d eve lo p a regu la r
exercise program; they focus on the
employee’ s total phys ica l and men-
tal cond ition.53 A meta-analysis of 36
programs des igned to reduce stress
(includ ing wellness p rograms) showed
that in terventions to help employees
reframe s tressful situa tions and use
active co p ing s trategies appreciably
red uced stress Jevels.5 4 tvlost wellness
programs a~sume that employees need
to take personal responsibil ity fo r their
p hysical and men tal health and tha t
the organization is merely a means to
that end. The inset Toward Less Stressf ul
\¥oril offers additional ideas.
F A C E O F F
When organizations provide on-
site daycare facilities, they are fill –
ing a needed role in parents’ lives,
and making it easier for parents to
attend to their job demands rather
than worry about child-care arrange-
ments.
RESEARCH EXERCISES
1. Look for data on stress levels in
other countries. How do these
data compare with the Canadian
data presented in the Fact.box?
Are the sources of stress the same
in different countries? What might
you conclude about how stress
affects people in different cultures?
2 . Rnd out what three Canadian
organizations in three differ-
ent industries have done to
help employees manage stress.
Are there common themes in
these programs? Did you find
any unusual programs? To what
When employees expect organizations
to provide child care, they are shifting
their responsib~ities to their employers,
rather than keeping their family needs
and concerns private. Moreover, it is
unfair to offer child-care benefrts when
not all employees have children.
extent are these programs tai-
lored to the needs of the employ-
ees in those industries?
YOUR PERSPECTIVE
1. Think of all the technical avenues
enabling employees to be con-
nected 24/7 to the workplace:
email, texting, company intranets.
A generation ago, most employ-
ees could go home after a day at
w ork and not be “on call.” What
are the positive benefits of this
change? What are the down-
sides? As an employee facing the
demand to “stay connected” to
Toward Less Sbesstu1 Wort(
• Avoid high-stress iobs – such as st
complaint work01: POiice offi ockbroker. customer service/
. • icer, waiter mecfca/ ·
and air traffic controller I • ‘ intern, secretary
h – un ess you are co f’d . · andle stress. n I ent in your ability to
• If you do exPerience stress at work t
of control (so You can decide how . ry to find a job that has Plenty
supportive co-workers. to perform your work) and
• Lack of money is the top stressor reporte
30, so pursue a career that d by People under age
degree of stress. ss pays you well but does not have a high
your workplace, how would you
try to maintain a balance in your
life?
2. How much responsibility should
individuals take for managing their
own stress? To what extent should
organizations become involved in
the personal lives of their employ-
ees when trying to help them
manage stress? What are the pros
and cons for whether employees
or organizations take responsibility
for managing stress?
WANT TO KNOW MORE?
If you want more tips on detecting
stress and coping with it, the Canadian
Heart & St rok e Fou nd at ion has
c reated a helpfu l brochure: http:/ /
www.heartandstroke.ca/-/media/
pdf-file.s/canada/health-information-
cata logu el e n-st ress- test-v3-0 .
ashx . Th e site also offers tips o n
reducing stress. You can also take a
work-lffe balance quiz at the Canadian
Mental Healt h Association website
(www.cmha.ca/mental_health/work-
life-balance-quiz/) and read more on
the effects of mental illness and stress.
183
124
Theories of Motivation
PA RT 2
STR I VI NG FOR
PERFORMANCE
O Describe the three key elements of motivation.
Lee
Valley Tools
founder Leonard
Lee decided to become
an entrepreneur at age 40.
He wanted his employees to
act as entrepreneurs too. How
d id he use motivation
to build a very
successful
tool store?
f) Evaluate the applicability of early theories of motivation.
f) Apply the key tenets of expectancy theory to motivati ng employees.
C, Demonstrate the differences among goal-setting theory, self-efficacy theory, and reinforcement theory.
0 Describe why equity and fairness matter in the workplace.
O Demonstrate how organizational justice is a refinement of equ ity theory.
f) Apply the pred ictions of self-determination theory to intrinsic and extrinsic rewards.
G Discuss the eth ics behind motivation theories.
0 Su mmarize the essence of what we know about motivating employees.
pproaching age 40,
Leonard Lee was tir-
ing of working for the
federal government. 1
Though his grand-
mother felt he had
won the lottery by get-
Jonathan Hayv,ardtrhe Canadian Press
ting a government job, Lee was not so sure. He was tired of the bureaucratic decision making, for one thing, and
was troubled by the fact that some of his colleagues did not really seem motivated by their jobs. “But what was
drMng me crazy were the number of people who would say, ‘I have 17 years, eight months, two weeks, two
days, and seven hours before I retire.”
Lee looked for something else to do, and he and his wife started a small mail-order business,
selling cast-iron barrel stove kits. After doing this successfully for two years, Lee’s confidence
built up, and he quit his government job to launch Lee Valley Tools. At first it was a cata-
logue business. Then a long postal strike almost ruined the business. So Lee opened a
retail store, and then continued to open stores over the years. An investment partner
explained why he had helped Lee start his business: “He was always full of energy,
full of beans, full of ideas . . . he was constantly churning up new ideas and continued
to do that right up until the end.”
In other words, Leonard Lee was very motivated in whatever he did: He found too much
responsibility in government work, without enough authority. Due largely to his personal moti-
vation, there are now 19 Lee Valley stores from Halifax to Victoria, all family-owned.
What motivates people? In this chapter, we review the basics of motivation, assess motivation
theories, and provide an integrative understanding of how the different theories apply to motivating
employees in organizations.
• Are managers man ipulati ng employees when they link rewards to prod uctivity?
\ I I
‘ , : ;, :
,V,
, ‘
‘l’IIE BIG IDEA
• Why do some managers do a better job of motivating people than others?
• How important is fairness to you?
• What can you do if you th ink your salary is unfair?
Successfully 1notivaling
individuals requires
identifying their needs
and 1naking it possible
for thern lo achieve
those needs.
125
126 Part 2 Striving for Performance
O Describe the three key
elements of motivation.
motivation The intensity, directioo,
and persistence of effort a person
shows in reaching a goal.
Theory X The assumption that
employees dislike work. will attempt
to avoid it, and must be coerced, con-
trolled, or threatened with punishment
to achieve goals.
Theory Y The assumption that
employees like work, are creative,
seek responsibility, and will exercise
sett-direction and sett-control if they
are committed to the objecti11es.
intri nsic motivators A person’s
internal desire to do something we
to such things as interest, challenge,
and personal satisfaction.
extrinsic motivators Motivatioo
that comes from outside the person
and includes such things as pay,
bonuses, and other tangible rewards.
What Is Motivation?
Motivation is one of the most frequently researched top ics in organizational behav-
iour (OB).2 A 2013 Ga llup po ll suggests that employees are no t motivated. Seven ty
percent of Canadian employees are no t engaged in their work, and another 14 percent
are actively disengaged.3 In a 2014 survey, 89 percent of employees reported wasting
time at work every day, and 62 percent sa id they waste between 30 and 60 m inutes
each day. How? Surfing the Internet came in firs t with 26 percent of respondents
(Google, Facebook, and Linkedln were the most popular ti me distractors); “too many
meeti ngs/co nference calls and dealing with annoying co-workers tied for second place
with 2401o each. “4
Motiva tion is the process that accounts for an ind ividual’s intensity, direction, and
persistence of effort toward reaching a goal.5
The three key elements in our definition are intensity, direction, and persistence.
lnrensity describes how hard a person tries. This is the elemen t most of us focus on when
we talk about motivation. However, high intensity is unlikely to lead to favourable job-
performance outcomes unless the effort is channelled in a direction that is beneficia l.
Therefore, we consider the quality of effort as well as its intensity. Finally, the effort
requires persistence. Th is measures how long a person can maintain effort. Motivated
individuals stay with a task long enough to ach ieve their goal.
Many people incorrectly view motivation as a personal trait- someth ing some peo-
ple have and others don’t. Along these lines, Douglas McGregor proposed two distinct
views of human beings. Theo ry X, which is basically negative, suggests that employees
d is like work, will auempt to avo id it, and must be coerced, controlled, or threatened
with punishment to achieve goals. Theo ry Y, which is basically positive, suggests that
employees like work, are creative, seek responsibility, and will exercise self-direction
and self-control if they are comm itted to the objectives.6
Our knowledge of motivation tells us that neither theory alone fully accounts for
employee behaviour. What we know is that motivation is the result of the interaction of
the individual and the situation. Certainly, individuals differ in their basic motivational
drive. But the same employee who is quickly bored when pulling the lever on a drill
press may enthusiastically pull a slot mach ine lever in Casino Windsor for hours on end.
You may read the latest bestseller at one sitting, yet find it difficu lt to concentrate on
a textbook for more than 20 m inutes. It’s no t necessarily you- it’s the s ituation. So as
we ana lyze the concept of motivation, keep in m ind that the level of motivation varies
both among individuals and within individuals at different ti mes.
You shou ld also rea lize that what motivates people will also vary among ind ividu-
als and sit uations. Motivation theoris ts talk abou t intrinsic motiva tors and extrins ic
motiva tors . Extrinsic motivators come from outside the person and include such things
as pay, bonuses, and o ther tangible rewards. Intrinsic motivators come from a person’s
internal desire to do something due to such things as interest, challenge, and personal
satisfaction. Individuals are intrinsically motivated when they genuinely care about their
work, look for better ways to do it, and are energized and fulfilled by doing it well.7
The re\vards the individual gets from intrinsic motivation come from the work itself
rather than from external factors such as increases in pay or compliments from the boss.
Are individuals primarily intrinsically or extrinsically motivated? Theory X suggests
that people are almost exclusively driven by extrinsic motivators. However, Theory Y
suggest.~ that people are more intrinsically motivated.
Intrinsic and extrinsic motiva tion may reflect the situation, however, rather than
individua l personalities. For example, suppose that your mother has asked you or your
brother to take her to a meeting an hour away. You may be willing to drive her, without
any thought of compensation, because it will make you feel good to do something for
her. That is intrinsic motivation. Bu t if you have a love-hate relationship with your
brother, you may insis t that he buy you lunch for helping ou t. Lunch would then be an
Ch apter 4 Theories of Motivation 127
exlrinsic motivator- something that came from o uLSide yourself and motivated you lo
do the task. La ter in the chapler, we review Lhe evidence regarding the s ignificance of
exlrinsic vs. inlrinsic rewards, and also examine how lo increase in trinsic motivation.
Meanwhile, you m ight consider whether you can motivale yourself th rough self-Lalk,
an idea considered in Focus 011 Research.
FOCUS ~i sEARCH
Talking to Yourself Ca n Be a Powerfu l Self-Motivator
How does internal d ialogue affect our mot ivat ion? In the child ren’s book The Uttle
Engine That Could , the title character says, ” I t hink I can , I think I can,” motivating itself
to do the job through positive self-talk . In a 201 O study, researchers exam ined whether
this type of talk is the best way to motivate oneself, or whether it is better to ask, “Can
I do this?”8
Subjects were asked to spend one minute either “wondering whether they would com –
plete a task or telling them selves they would. ” Then they were asked to complete some
puzzles. Subjects who asked themselves whether they would comp lete the task were
more successful than those who said they would. Several similar studies were conducted ,
and the results of each of them indicate that intrinsic motivation increased when subjects
asked them selves a question about performance.
These findings suggest that asking yourself whether you will go to the gym three times
next week will b e more effective than telling yourself that you will go to the gym three
times next week. One of the authors of the study summarized the results as follows: “The
popular idea is that self-affirmations enhance people’s ability to meet their goals. It seems ,
however, that when it comes to performing a specific behaviour, asking questions is a more
promising way of achieving your objectives.” ………………………………..•
Needs Theories of Motivation
People vary in what lhey need to motivate themselves. Some need external support and guid-
ance, while others are motivated intrinsically, relying on themselves.9 One of the things that
motivated Leonard Lee, founder of Lee Valley Tools, was sourcing and designing tools for his
customers-in olher words, meeting the needs of other people. When Lee heard that an Ottawa-
based plastic surgeon was using Lee Valley woodworking knives, he started a new company to
sell medical instruments.
The company made a number of specialized tools for the medical profession . Though he
eventually sold lhe rights to these tools, his son Robin Lee said that his father “was most proud
of and most disappointed by” the medical company because “selling to the canadian medical
system proved frustrating.” That said, Leonard Lee ran the business for almost 16 years.
In this section we discuss how needs can be used to motivate others.
Theories of motivalion generally fa ll into two categories: needs theories and process
theories. Needs theories describe Lhe ly pes of needs thal musl be mel lo motivate indi-
viduals. Process theories help us understand the actual ways in which we and others can
be molivated. There are a variety of needs theories, includ ing Maslow’s hierarchy of
needs, Herzberg’s motivation- hygiene theory (sometimes called the two-factor theory),
and McClelland’s theory of needs. We briefly review lhese lo illustrale the basic proper-
lies of needs theories.
Needs Lheories are widely cril icized for nol standing up to scienlific review. How-
ever, you should know them because ( 1) Lhey represent a foundation from wh ich
128 Part 2 Striving for Performance
f) Evaluate the applicabil-
ity of early theories of
motivation.
hierarchy of needs theory A
hierarchy of five needs-physiologi-
cal, safety, social, esteem, and seH-
actualization-,n which, as each need
is substantially satisfied, the next
need beoomes dominant.
lower-order needs Needs that are
satisfied externally. such as physi-
ological and safety needs.
self-actualization The drive to
become what a person is capable of
becoming.
higher-order needs Needs that
are satisfied internally. such as social
(belonging), self-esteem, and self-
actualization needs.
two-factor theory A theory that
relates intrinsic faciOfs to job satisfac-
tion and associates extrinsic factOfs
with dissatisfaction. Also called the
motivati01H1ygiene theory.
contemporary theories have grown, and {2) practis ing managers still regularly use these
theories and their term ino logy in explain ing employee motivation.
Maslow’s Hierarchy of Needs Theory
The best known theory of motivation is Abraham Maslow’s hierarchy of needs . lO
Maslow hypothesized that w ithin every human being there exists a hierarchy of five
needs:
• Physiological. Includes hunger, thirst, sheller, sex, and other bodily needs.
• Safety. Includes security and protection from physical and emotiona l harm.
• Social. Includes affection, belongingness, acceptance, and fr iendsh ip.
• Esteem. Includes internal esteem fac tors such as self-respect, autonomy, and
ach ievement; and external esteem factors such as status, recognition, and
attention.
• Selfacuialization. Includes growth, achieving one’s potential, and self-fulfillmen t.
This is the drive to become what one is capable of becoming.
Recently, a sixth need has been proposed as the highest leve l- intrinsic val ues-
wh ich is sa id to have originated from Maslow, but it has yet to ga in widespread
acceptance.11
Although no need is ever fully met, a substantially satisfied need no longer moti-
vates. Thus, as each need becomes substantially satisfied, the next need becomes domi-
nant. This is what Maslow means by mov ing up the steps of the h ierarchy. So if you
want to motivate someone, according to Maslow, you need to understand what level of
the hierarchy that person is currently on and focus on satisfying needs at or above that
level. Exhibit 4-1 identifies Maslow’s h ierarchy of needs on the left, and then illustrates
how these needs are applied in the workplace. 12
Maslow separated the five needs into higher and lower orders. Physio logica l and
safety needs, where people start, are lower-order needs; social (belonging), self-esteem,
and self-actualization are higher-order needs. Higher-order needs are satisfied inter-
nally (within the person), whereas lower-order needs are mainly satisfied externally (by
rewards such as pay; union contracts, and tenure).
Maslow’s theory has received long-s tand ing wide recogn ition, particularly among
practising managers. It’s intuitively logical and easy to understand, even though little
research supports the theory. Maslow himself provided no empirica l evidence, and
some research has val idated it. 13 Unfortunately, however, mos t research does not,
especially when the theory is applied to d iverse cultures, 14 with the possib le exception
of physiological needs. 15 But old theories, especially intui tively logical ones, die hard.
It is thus importan t to be aware of the prevailing public accep tance of the hierarchy
\vhen d iscussing motivation.
Two-Factor Theory
Believing that an individual’s relationship to work is basic and that attitude toward this
work can very well determine success or failure, Frederick Herzberg wondered, “What
do people want from their jobs1• He asked people to describe, in detail, s ituations in
wh ich they felt exceptionally good or bad about their jobs. The replies people gave when
they felt good about their jobs sign ificantly differed from when they fe lt bad, which
led Herzberg to h is two-factor theory-also called motivation-hygiene theory, but this
term is not used much today. I 6
As Exhibit 4-2 shows, intrinsic factors, such as achievement, recognition, the work
iL~elf, responsibility, advancement, and growth, seem to be related to job satisfaction.
Respondents who felt good about their work tended to attribute these factors to their
Chapter 4 Theories of Motivation 129
EXHIBIT 4-1 Maslow’s Hierarchy of Needs Applied to the Workplace
Self-Esteem
Belonging
Safety
Physiological
Recognition
Culture
Job Security
Salary and Rewards
Source: C. Conley, Peak: How Great Companies Get Their Mojo from Maslow (San Francisco: Jessey-Bass, 2007). ISBN: 978-
0787988616. Copyright © John Wiley & Sons.
s ituations. On the other hand, dissatisfied respondents tended to cite extrinsic factors,
such as company policy and admin istration, supervision, interpersona l relations, and
work condi tions.
The data suggest that the opposite of satisfaction is no t dissatisfaction, as was tra-
d itionally believed. Removing d issatisfying characteristics from a job does not neces-
sarily make the job satisfying. As illustrated in Exhibit 4-3, Herzberg proposed a d ual
EXHIBIT 4- 2 Comparison of Satisfiers and Dissatisfiers
Factors characterizing 1844 e vents
on the job that
led to extreme dissatisfaction
Company
policy ond
administration
Supervision
Relationship with supervisor
Worlc conditions
50% 40
Solory
Relationship w ith peers
Personal life
Relationship with subordinates
Slalus
30 20 10 0
Factors characteriz:ing 1753 events
on the job that
led to extreme satisfaction
Achievement
Recognition
Work itself
Responsibility
Advancemenl
Growth
10
All factors
contributing
to job
dissatisfaction
69 Hygiene
3 1
All factors
contributing
to job
sotisfoclion
19
I I I I I I I
80% 60 40 20 0 20 40 60 80%
Ratio and percentage
20 30 40 50%
Percentoge frequency
Source: Harvard Business Review. An exhibit from Frederick Herzberg, “One More Time: How Do You Motivate Employees?” Harvard
Business Review 81 , no. 1 (January 2003), p. 90.
130 Part 2 Striving for Performance
hygiene f actors Fact0
managers do
a better job
of motivating
people than
others’?
ers incorrectly assume that all employees want the same thing. They overlook the
motivational effects o f d ifferent ia ting rewards. In e ither case, employee motivation
may be lower because the specific need the employee has is no t being met through
J
f
—– ~
The performance-reward relationship is strong at Mary Kay Cosmetics, which offers a rewards and
recognition program based on the achievement o f personal goals set by each salesperson. These inde-
pendent consultants are posing in front o f Mary Kay Career Cars, one o f many rewards that motivate
Mary Kay’s salesforce.
instrumentality The belief !hat
performance is related to rewards.
valence The value or importance
an individual places on a reward.
136 Part 2 Striving for Performance
Stock Analyst Recommenda ti ons and Valence
Cou ld rewa rds obscure making accurate recommendatio ns? Stock analysts make
their l iving trying to forecast a stock’s future price; the accuracy of their buy, sell, and
hold recommendations is what keeps them in work or gets them fired. 28 Nevertheless,
analysts place few sell ratings o n s tocks, although in a steady market, b y defin ition, as
many stocks are falling as are ris ing.
Expectancy theory provides an explanation: Analysts who place a sell rating on a
company’s s tock have lo balance the benefits they receive by being accurate against the
risks they run by drawi ng that co mpany’s ire. Whal are these risks? They include p ublic
rebuke, professiona l b lackball ing, and excl us io n from information. Their valence for
this is – 1. When analysts place a buy rating on a s tock, lhey face no s uch trade-off
because, obviously, companies love il when analysts recommend lhal investors buy
their stock. Expectancy theory suggests that the expected rewards and lheir desirability
is h igher for buy ratings lhan sell ratings, and that is why b uy ratings vastly outnumber
sell ratings . . . .. . … … . .. . … … . .. . .. . … … . .. . … … . .. . … … … . .. . … … .
the reward structure. Valence ranges from -I (very undes irable reward) lo + I (very
des irable reward) . OB in the Worliplace shows lhal valence can drive stock analysts lo
place more buy ratings than sell ratings.
Expectancy Theory in the Wo rkplace
Does expectancy theory work? Al though il has its cri tics, 29 most of the research evidence
supports the theory.30 Research in cross-cultural settings has also indicated support for
expectancy theory. 31
Exhibit 4-7 gives some suggesti ons for what a manager can do lo increase the
motivation of employees, using insights from expectancy theory. To appreciate how
expectancy theory might apply in the workplace, see this chap ter’s Case Incident- Wage
Reduction Proposal on page 160 for a n example of what happens when expected rewards
are withdrawn .
The Importance of Providing Performance Feedback
People do beuer when they gel feedback on how well they are progressing toward their
goa ls because il helps identify d iscrepancies between what they have done and what
they wanl lo do- that is, feedback guides behaviour. But all feedback is not equally
potent. Self-generated feedback- with which emp loyees are able lo monitor their
own progress or receive feedback from the task process itself- is more powerful than
externally generated feedback. 32 Recent research has also shown lhal people monitor
EXHIBIT 4- 7 Steps to Increasing Motivation, Using Expectancy Theory
Improvin g Expectancy
Imp rove t he abil ity of the
individual to perform.
• Make sure employees have skills
for the task.
• Provide training.
• Assign reasonable tasks and goals.
Improving In stru m entality
Increase the individual’s belief that
performance will lead to reward.
• Observe and recognize performance.
• Deliver rewards as promised.
• Indicate to employees how previous
good performance led to greater rewards.
Improving Valence
Make sure that the reward is
meaningful to the individual.
• Ask employees what rewards they
value.
• Give rewards that are valued.
lh eir progress d iffe rently depending on how close they are to
goal accompl ishment. When lhey have just begun pursuing
a goal, lh ey derive molivalio n from believing that lh e goal is
attai nable, so they exaggerate their level of progress in order
to slay motivated. However, when they are close to accom-
pl ishing their goal, they derive motivation from believing a
d iscrepancy slill exists between where they are currently and
wh ere they wou ld like to be, so they downplay their progress
to da le to signa l a need for higher effort.33
Effec tive feedback- where the employee perceives t he
appraisa l as fair, the manager as sincere, and the climate as
constructive- can lead lh e employee to respond pos itively
and become determined to correct his or h er performance
deficiencies. 34 Th us, the performa nce review shou ld be more
like a co unsell ing aclivity t han a judgment process, a llow-
i ng the review lo evolve ou t of the employee’s own self-
evaluatio n. For more lips o n performance feedback, see OB
in Action- Giving More Effeccive Feedback.
Goal-Setting Theory
You have heard the phrase a number of limes: “J us t do your
best. That’s all anyone can ask for.” But wh at does “do yo ur
best• mea n? Do we ever kn ow whether we h ave ach ieved that
vague goal? Might we do better with specific goals? Research on
Chapter 4 Theories of Motivation 1 37
~ OB~cr10N
Giving More Effective Feedback
Managers can use the following tips to give more
effective feedback:
-+ Relate feedback to exisling performa nce goals
an d clear expectations.
-+ Give sp ecific feedback tied to observab le
beh aviour or measurab le resullS.
-+ Channel feedback toward key res ult areas.
-+ Give feedback as s oon as possible.
-+ Give positive feedback for improvemen t, not
jusl fina l resullS.
-+ Focus feedback on p erfo rman ce, nol
perso nalities.
-+ Base feedback o n accurale and cred ible
information. 35
goal-setting theo ry, proposed by Edwi n Locke, reveals the impressive effects of goal
specificity, challenge, and feedback o n performance.
Demonstrate the
differences among
goal-setting theory,
self-efficacy theory .
and reinforcement
theory.
The research on goal-sell ing theory by Locke and his colleague, Professor Gary
Latham at lh e University of Toronto, shows that inlenlions to work toward a goal are
Co-founders Anthony Thomson (left) and Vernon Hill (right) launched their first Metro Bank in London,
England, with a long-term goal of adding 200 new branches and capturing up to 10 percent of London’s
banking mar1
Critical Review of Dyadic Trust,” Journal of
Management 41 , no. 1 (2015), pp. 47-70; R.
L. Priem and P. C. Nystrom, “Exploring the
Dynamics of Workgroup Fracture: Common
Ground, Trust-With-Trepidation, and Warranted
Distrust,” Journal of Management 40, no. 3
(2014), pp. 67 4-795.
The opinions provided here are of the man8(J-
er.s and authors only and do nor necessarily
reflect those of their organlzlltlons. The authors
or man8(Je(S are not responsible for any errors
or omissions, or for the results obtained from
the use of this information. tn no event will the
authors or man8(JefS, or their related partner-
ships or corporations thereof, be liable to you
or anyone else for any decision made or action
taken In reliance on the opinions provided here.
2 16 Part 2 Striving for Performance
f) Identify the characteris·
tics of effective teams.
Creating Effective Teams
I Building an effective team requ ires solid groundwork, wh ich Susan Wright did with her Summerlunch+ student employees by explaining the norms, making sure there was enough
supervision, and letting the employees develop confidence in their wcrk. 60 After several weeks,
Wright added more things to help the team develop.
Recogn ition and rewards can be part of building a solid team . Wright learned that the
students wanted to go to Canada’s Wonderland together. “In the background, we worked on
getting tickets for the team. Once the students saw that we were listening and wanted to show
our gratitude, we felt an immediate increase in commitment and energy.”
By the fourth week, Wright and the others in charge expanded the roles of the student
employees to bring them closer together. Students found their responsibility, creativity, and
autonomy increased, unless a student seemed unable to handle these additional items. That
way, students were not overwhelmed by changes, but the team could grow as a whole.
Finally, during the last week of camp, Wright sought more feedback from the students,
I asking them to tell the leaders about their roles and how they felt about their experience with Summerlunch+. Students were proud to have been part of this endeavour.
When we consider team effectiveness, we refer to such objective measures as the team’s
productivity, managers’ ratings of the team’s performance, and aggregate measures of
member satisfaction. Some of the considerations necessary to create effective teams
are outl ined next. However, we are also interested in team process. Exhibit 6-5 lists the
characteristics of an effective team.
EXHIBIT 6-5 Characteristics of an Effective Team
1. Clear purpose The vision, mission, goal, or task of the team has been defined and is now accepted by
everyone. There is an action plan.
2. Informality The climate tends to be informal, comfortable, and relaxed. There are no obvious tensions
or signs of boredom.
3. Participation There is much discussion, and everyone is encouraged to participate.
4. Listening The members use effective listening techniques such as questioning, paraphrasing, and
summarizing to get out ideas.
5. Civilized disagreement There is disagreement, but the team is comfortable with this and shows no signs of
avoiding, smoothing over, or suppressing conflict.
6. Consensus decisions For important decisions, the goal is substantial but not necessarily unanimous agreement
through open discussion of everyone’s ideas, avoidance of formal voting, or easy compromises.
7. Open communication Team members feel free to express their feelings on the tasks as well as on the group’s
operation. There are few hidden agendas. Communication takes place outside of meetings.
8. Clear rules and work There are clear expectations about the roles played by each team member. When action is
assignments taken, clear assignments are made, accepted, and carried out. Work is distributed among
team members.
9. Shared leadership While the team has a formal leader, leadership functions shift from time to time depending
on the circumstances, the needs of the group, and the skills of the members. The formal
leader models the appropriate behaviour and helps establish positive norms.
10. External relations The team spends time developing key outside relationships, mobilizing resources, and
building credibility with important players in other parts of the organization.
11 . Style diversity The team has a broad spectrum of team-player types including members who emphasize attention
to task, goal settilg, focus on process, and questions about how the team is functioning.
12. Self-assessment Periodically, the team stops to examine how w ell it is functioning and what may be
interfering with its effectiveness.
Source: Team players and teamwork: The new competitive business strategy by PARKER, GLENN M. Reproduced with permission of
JOHN WILEY & SONS, INCORPORATED in the format Republish in a book via Copyright Clearance Center.
EXHIBIT 6-6 A Model of Team Effectiveness
Context
• Adequate resou rces
• Leadership and structure
• Climate of t rust
• Performance
evaluation
and systems
Team
effectiveness
Process
• Common purpose
• Specific goals
• Team efficacy
• Team identity
• Team cohesion
• Mental models
• Conflict levels
• Social loafing
Chapter 6 Groups and Teamwork 2 17
Composition
• Abilities of members
• Personality
• Allocati ng roles
• Diversity
• Cultural differences
• Size of teams
• M ember preferences
There is no shortage of efforts Lhat try to identify Lhe factors Lhat lead to team effec-
tiveness. However, stud ies have taken what was once a large list of characteristics into
a relatively focused model. 61 Exhibit 6-6 summarizes what we currently know about
what makes teams effective.
Keep in mind two caveats as you review Lhe issues Lhat lead to effective teams:
• First, teams differ in form and structure. Since Lhe model we present at1empts
to general ize across all varieties of teams, you need to be carefu l not lo rigidly
app ly Lhe model’s predictions to all teams.62 The model sh ould be used as a
guide, not as an inflexible prescription.
• Second, Lhe model assumes Lhat it’s already been determined that teamwork is
preferable over ind ividual work. Creating “effective” teams in situations where
individuals can do Lhe job better is equiva len t lo solving Lhe wrong problem
perfectly.
What does team effectiveness mean in th is model? ‘fypically, il includes objective
measures of the team’s productivity, managers’ ratings of the team’s performance, and
aggregate measures of member satisfaction. We can organ ize Lhe key compo nents of
effective teams into three general categories. First are Lhe resources and other contex-
tual in fl uences Lhat make teams effective. The second relates to Lhe team’s composition.
Finally, process variables are events wilhin Lhe team Lhat influence effectiveness. We will
explore each of these components next. OB in Action- Hanning Your Team presents
activities Lhat can make a team ineffective. You might want to eval uate your own team
experience against Lhis checkl ist to give you some idea of how well you r team is func-
tioning, or to u nderstand what might be causing problems for your team. Then consider
Lhe factors Lhat lead lo more effective teams below. For an applied look at Lhe process
of bui lding an effective team, see Lhe Experiential Exercise on page 235 wh ich asks you
to bu ild a paper tower wi th teammates and Lhen analyze how the team performed.
2 1 8 Part 2 Striving for Performance
~ OB ~cr10N
Harm ing Yo ur Team
-+ Refuse to s h are issues and concerns. Team
members refuse to share information and
engage in s ilence, avoidance, and meetings
behind closed doors where not all members
are included.
-+ Depend too much on the leader . Members
rely too m uch on lhe leader and do not cany
oul their responsibi lit ies.
-+ Fail to follow through on decisions. Teams
do not take action after decis ion making,
showing that the needs of the team have low
priority, or that members are not committed
to lhe decisions that were made.
-+ Hide conflict. Team members do not reveal
that they have a difference of opin ion, an d
this causes tension.
-+ Fail at conflict r es o lu tion . Infighting, put-
downs, and attempts to hurt other members
damage the team.
-+ Form subgroups . The team breaks up into
smaller groups that p ut their needs ahead of
the team as a whole. 63
Context
The four contextual factors that appear to be most s ignificanlly
related lo team performance are adequa te resources, effective
leadersh ip, a cl imate of lrust, and a performance evalua tio n and
reward system that reflects team conlrib utions.
Adequate Resources
Teams are part of a larger organizatio n system; every work team
relies on resources outside lhe team to sustai n itself. A scarcity of
resources directly reduces the abi lity of a team to perform its job
effe ctively. As one set of researchers concluded, after looking at
13 factors potentially related to team performance, “perhaps one
of the most importa nt characteristics of an effective work group
is lhe support the group receives from the organ ization.”64 Th is
support includes technology, adequate staffing, admin islrative
assistance, encouragement, and timely information.
Teams mus t receive the necessary support from management
and lhe larger organiza tion if they are lo succeed in ach ieving
their goals.
Leadership and Structure
Leadership plays a crucial role in the development and success
of teams.
Professor Richard Hackman of Harvard Un iversity, who is
lhe leading expert on teams, suggests that the role of team leader
involves lhe follow ing:66
• Creating a real team rather than a team in name o nly
• Setting a clear and mean ingful d irection for lhe team’s work
• Maki ng sure that lhe team slructure wi ll support working
effectively
Wadood Ibrahim (centre), CEO of Winnipeg-based Protegra, a management consulting firm, strongly
believes in engaged teams. “We give Protegrans the autonomy and responsibility to do their own work,
and as a result, they take on the challenge to do what they need to without strict hierarchical management
structures in place.”65
Chapter 6 Groups and Teamwork 2 19
• Ensuring lhal lhe team operates wilhin a supportive organiza tional context
• Providing expert coaching
Teams can’t function if lhey can’l agree on who is lo do what and ensure all mem-
bers share lhe workload. Agreeing on lhe specifics of work and how lhey fit togelher to
integrate individual skills requires leadership and slructure, ei ther from managemen t
or from team members lhemselves. In self-ma naged teams, members absorb many of
lhe du ties typically assumed by managers. A manager’s job then becomes managing
outside (rather lhan inside) lhe team.
Leadership is especially important in mu ltiteam syslems. Here, leaders need to del-
egate responsibil ities to teams and play lhe ro le of facilitator, making sure lhe teams
work togelher ralher Lhan against one anolher. 67
Rece nt research suggests lhat women may make beuer team leaders lhan men, as
Focus on Research shows.
FOCUS ~1 sEARCH
A Leader’s Gender Can Affect Team Performance
Do men’s and women’s approaches to team leadership lead to different outcomes? “The
more women participating equally in a project, the better the outcome,” suggests Professor
Jennifer Berdahl of the Sauder School of Business at the University of British Columbia. 68
Berdah I’s research looked at 169 students enrolled in her o rganizational behaviour
courses. She found that all of the teams started out w ith one person taking a leadership
role. However, if the groups were predominantly male, the same person stayed in charge
the entire time. In predominantly female teams, women shared leadership roles, and were
more egalitarian in how they worked. Male-led teams, whether they were predominantly
male groups or mixed- gender groups, received poorer grades on their projects than teams
where women shared leadership ro les.
Berdahl gives this advice to students: “In a creative project team, it’s really important to
• ensure there is equal opportunity for participation.” …………………………..•
Climate of Trust
Trust is lhe fo undalion of leadership; it allows a team to accep t
and commit to the leader’s goals and decis ions. Members of
effective teams exhibil trusl in lheir leaders.69 They also trus t
o ne anolher. Interpersonal trust among team members facil i-
tates cooperation, reduces lhe need lo mon itor one another’s
behavio u r, and bonds individuals through the be) ief that
members won’t take advantage of lhem. Members are more
likely to take risks and expose vu lnerab ilities when lhey can
lrust others on lheir team. Trust allows a team to accept and
comm it lo its leader’s goals and decisions. The overa ll level
of lrust in a team is important, b ut the way trust is dispersed
amo ng team members also matters. Trust levels lhat are asym-
melric and imbalanced between team members can m itigate
lhe performance advantages of a high overall level of lrust- in
such cases, coalitions form lhat often underm ine the team as a
whole.70 OB in Action- Building Trust shows Lhe dimensions
lhal underl ie the co ncept of trust. Focus on Diversity exam ines
how lrust varies across cultures.
··-
~ OB ~c110N
Build ing Trust
The fo llowing aclions, in order of importance,
help bu ild one’s lrustworlhiness.
-+ lntegrity- b uill lhrough h onesty and truth-
fulness.
-+ Compete nce-demonstrated by technical
and interpersona l knowled ge and skills .
-+ Consistency-shown by reliability, p redictabil-
ity, and good judgment in handling situations.
-+ Loyalty – one’s will ingness to protect an d
sta nd up for anolher person.
-+ Open ness-o ne’s willingness to sh are id eas
and info r m atio n freely. 71
220 Part 2 Striving for Performance
How do you develop trust on multicult ural teams? The development of trust is critical
in any work situation, but especially in multicultural teams, where differences in commu-
nication and interaction styles may lead to misunderstandings, eroding members· trust in
one another. 72
Some studies have shown that overall levels of trust differ across cultures. For example,
Germans have been found to be less trusting of people from other countries, such as
Mexicans and Czechs. Japanese employees have been found to be more trusting of their
North American counterparts than the other way around, but only in long -lasting relation-
ships. Chinese and US employees seem to trust each other equally.
There is some evidence that people from different cultures pay attention to different
factors when deciding whether someone is trustworthy. Risk taking appears to be more
critical to building trust for US and Canadian employees than for Japanese employees,
perhaps reflecting that Canada and the United States are lower in uncertainty avoidance
than Japan . Both Chinese and Mexican employees appear to rely more than US employ-
ees on emotional cues such as mutual understanding, openness, and social bonding,
and less on cognitive cues such as reliability, professionalism, and economic cooperation.
When interacting with others from different cultures, whether in a fonmal team setting
or not, it seems that what drives you to trust your colleagues may differ from what drives
your colleagues to trust you, and recognizing these differences can help to facilitate higher
: levels of trust . ……………………………………………………….. .
Trust is a perception that can be vulnerable to shifting cond itions in a team e nvi-
ro nmen t. Also, trust is not u nequivocally desirable. For instan ce, recen t research in
Singapore found that, in h igh-trust tea ms, i ndivid ua ls are less likely to clai m and
defend personal own ersh ip of their id eas, bu t individuals who do still cla im personal
ownersh ip are rated as lower co ntributors by ream members.73 This •pu nishment” by the
team may reflect resentments that create negative relationships, increased co nflicts, and
reduced performance. For add itional in formation on what leaders ca n d o to improve
the cl imate of trus t in their organization, see OB on the Edge-1h1st, o n pages 240- 245.
Performance Evaluation and Rewards
How do yo u get team members to be both individ ually and jo intly accountable?
Individual performa nce evaluations and incentives are not consistent with the develop-
ment of high-performance teams. So in addi tion to evaluati ng and rewardi ng employees
for their ind iv id ua l contrib utions, management should utilize hybrid performance
systems that incorporate an ind ividual member component
to recogn ize individ ual co ntribu tions and a group to rec-
ogn ize positive team outcomes.74 Some research has found
th at when team members did no t trust th eir colleagues’
ability, h o nesty, an d d ependab ility, they preferred ind ivid-
ual-based rewards rath er than team-based rewards. Even
wh en trust improved over time from worki ng toge ther,
there was still a preference for ind ivid ua l-based rewards,
suggesting that •teams must have a very h igh level of trust
for members to tru ly embrace group-based pay,”75
Should
individuals he
paiol for their
team””ork or
t heir individual
performance’?
O ne add itional consideration when deciding whether and h ow to reward team
members is the effect of pay dispers ion on team performance. Research by Na ncy
Langton, your Van couver-based a uthor, shows that when there is a large discrepancy in
Chapter 6 Groups and Teamwork 221
wages among group members, collaboralion is lowered.76 A study of baseball player sal-
aries also found that teams where p layers were paid more simi larly oflen ou tperformed
learns with high ly paid “stars• and lowly paid •scrubs. •77 How teams are slructured and
rewarded is the topic of Focus on Research.
FOCUS ~i sEARCH
The Im pact of Rewards on Team Functi oning
Can competit ive teams lea rn to cooperate? Researchers at Michigan State University
composed 80 four-person teams from undergraduate business students.78 In a command-
and-control computer simulation developed for the US Department of Defense, each
team ‘s mission was to monitor a geographic area, keep unfriendly forces from moving in,
and support friendly forces. Team members played on networked computers, and per-
formance was measured by both speed (how quickly they identified targets and friendly
forces) and accuracy (the number of friendly fire errors and missed opportunities).
Teams were rewarded either cooperatively (in which case team members shared
rewards equally) or competitively (in which case team members were rewarded based
on their individual contributions). After playing a few rounds, the reward structures were
switched so that the cooperatively rewarded teams were given competitive rewards and
the competitively rewarded teams were now cooperatively rewarded.
The researchers found the initially cooperatively rewarded teams easily adapted to the
competitive reward conditions and learned to excel. However, the formerly competitively
rewarded teams could not adapt to cooperative rewards. It seems teams that start out
being cooperative can learn to be competitive, but competitive teams find it much harder
to learn to cooperate.
In a follow-up study, researchers found the same results: Cooperative teams more
easily adapted to competitive conditions than competitive teams did to cooperative condi-
tions. However, they also found competitive teams could adapt to cooperative conditions
when given freedom to allocate their roles (as opposed to having the roles assigned). That
freedom may lead to intrateam cooperation, and thus the process of structuring team roles
: helps the formerly competitive team learn to be cooperative . …………………… .
Composition
The team composilion calegory includes variables thal relate lo how learns should be
staffed- the abi lil ies and personalilies of team members, lhe allocation of roles, d iver-
s ily, cultural differences, size of the team, and members’ preferences for teamwork. As
you can expect, op inions vary widely aboul the type of members leaders wanl on their
learns. Google tried lo find a form ula for bui ld ing the perfecl learn, as Focus on Research
noles.
Ab ilities of Members
ll’s lrue thal we occasiona lly read about an athletic learn of mediocre players who,
because of excellenl coach ing, determination, and precision teamwork, beat a far more
lalented group. Bul such cases make the news precisely because they are unusual. A
lea m’s performance depends on part on lhe knowledge, skills, and abilities of its indi-
vidual members.80 Abilities set limils on whal members can do and how effectively
they will perform o n a learn.
Research revea ls insighls into team composition and performance. First, when
so lving a complex problem s uch as re-engineering an assembly line, h igh-ab ilily
learns- composed of mostly intell igenl members- do better than lower-ability teams.
222 Part 2 Striving for Performance
FOCUS ~1sEARCH
Building Teams
Is it possible to b uild t he perfect team? HR people at Google set up a task force called
Project Aristotle to find the secret to perfect teams. 79 The team thought an algorithm was
out there, if they just studied enough teams. The task force studied 180 of the company’s
active teams and interviewed hundreds of employees.
”Who is on a team matters less than how the team members interact, structure their
work, and view their contributions,” said people operations analyst Julia Rozovsky.
“Essentially, the best teams are made up of people who respect one another’s emotions,
can depend on each other, and actually care about what they’re doing.”
Rozovsky and the task force did find one important norm that seemed to apply to
effective teams. This was the notion of psychological safety. For example, one engineer
described his team leader as “direct and straightforward, which creates a safe space
for you to take risks.” Another engineer noted that his “team leader had poor emotional
control,” and this made him feel uneasy. Rozovsky concluded that in order to optimize
teamwork, “We had to get people to establish psychologically safe environments.” •.. . .•
High-abi lity teams are also more adaptab le to changing situations; lhey can more effec-
tively apply existing knowledge to new prob lems.
Finally, the abi lity of t he team’s leader mauers. Smart team leaders help less.
intelligent team members when lhey struggle wilh a task. A less intelligent leader can
conversely neutral ize lhe effect of a high-ab ility team.8 1
Exh ibit 6-7 identifies some important ski lls lhat all team members can apply to
help teams function well.
EXHIBIT 6-7 Teamwork Skills
Orients team to
problem-solving
situation
Organizes and
manage.s team
performance
Pro motes a positive
t eam environment
Facilitates and
manage.s task conflict
Appropriately
promotes perspective
Assists the team in arriving at a common understanding of the situation or problem.
Determines the important elements of a problem situation. Seeks out relevant data
related to the situation or problem.
Helps team establish specific, challenging, and accepted team goals. Monitors,
evaluates, and provides feedback on team performance. Identifies alternative strategies
or reallocates resources to address feedback on team performance.
Assists in creating and reinforcing norms of tolerance, respect, and excellence.
Recognizes and praises other team members’ efforts. Helps and supports other team
members. Models desirable team member behaviour.
Encourages desirable and discourages undesirable team conflict. Recognizes the type
and source of conflict confronting the team and implements an appropriate resolution
strategy. Employs “win-win” negotiation strategies to resolve team conflicts.
Defends stated preferences, argues for a particular point of view, and withstands
pressure to change position for another that is not supported by logical or
knowledge-based arguments. Changes or modifies position if a defensible argument
is made by another team member. Projects courtesy and friendliness to others while
arguing position.
Source: G. Chen, L M. Donahue, and R. J . Klimoski, “Training Undergraduates to Work in Organizational Teams,• Academy of Management
Learning & Education 3, no. 1 (March 2004), p . 40.
Personality of Members
Teams have different needs, and people should be selected
for the team on the basis of their personalities and prefer-
ences, as well as the team’s needs for d iversity and specific
roles. We demonstrated in Chapter 2 that personality sig-
nificantly influences ind ividual behaviour. This assertion
can also be extended lo team behaviour.
Some d imensions identified in the Big Five Personality
Model are particularly relevant lo team effectiveness.B2
Chapter 6 Groups and Teamwork 223
\>Vhy do sorne
team me1nbers
seem to get
along better
than others’?
Conscientiousness is especially important to teams. Conscientious people are
good a t backing up other team members, and th ey are also good at sensing when their
support is truly needed. Conscientious teams a lso have other advantages- one study
found that behavioural tendencies such as organ ization, achievemen t orientation, and
endurance were all related to h igher levels of team performance.83
Team composition can be based on individua l personalities lo good effect. Suppose
an organization needs to create 20 teams of 4 peop le each and has 40 high ly consci-
en tious people and 40 who score low on conscientiousness. Would the organ ization
be beuer off (a) putting all the conscientious people together (forming 10 teams with
the h ighly conscientious people and 10 teams of members low on conscientiousness)
or (b) “seeding” each team with 2 peop le who scored h igh and 2 who scored low on
conscientiousness?
Perhaps surprisingly, the evidence tends lo suggest that option (a) is the best choice;
performance across the teams will be higher if the organization forms 10 highly con-
scientious teams and 10 teams low in conscientiousness. The reason is that a team with
varying conscientiousness levels w ill not work to the peak performance of its h ighly
conscientious members. Instead, a group normalization dynamic ( or simp le resent-
ment) will complicate interactions and force the h ighly conscientious members to lower
their expectations, thus reducing the group’s performance_B4
What about the o ther trails? Teams with a high level of openness to experience
tend lo perform beuer, and research indicates that constructive task conflict enhances
the effect. Open team members co mmunicate better with one another and t hrow
out more ideas, which makes teams composed of open people more creative and
innovative.85 Task co nflict also enhances performance for teams with high levels of
emotional stability.86 It’s nol so much that the confl ict itself improves performance
for these teams, but that teams characterized by openness and emotional stab il ity are
able to hand le conflict and leverage it to improve performance. The m inimum level
of team member agreeableness matters, loo: Teams do worse when they have one or
more highly d isagreeable members, and a wide span in individual levels of agreeable-
ness can lower productivity. Research is nol clear on the outcomes of extraversion, but
a recent study ind icated tha t a high mean level of extraversion in a team can increase
the level of helping behaviours, particularly in a cl imate of cooperation.B7 Thus the
persona lity tra its of individuals are as important lo teams as the overall personality
characteristics of the team.
Allocation of Roles
Teams have different needs, and members shou ld be selected to ensure all the various
roles are filled. A study of778 major league baseball teams over a 21-year period high-
ligh ts the importance of assigning roles appropriately.BB As you might expect, teams with
more experienced and skilled members performed beuer. However, the experience and
skill of those in core ro les who handled more of the workflow of the team, and were
central to all work processes ( in this case, p itchers and catchers), were especially vi tal.
In other words, pul your most able, experienced, and conscientious employees in the
most central roles in a team.
224 Part 2 Striving for Performance
e Explain the implications
of diversity for group
effectiveness.
group diversity The presence-:–]
a heterogeneous mix of individuals
within a group.
organizational demography The
degree to which members of a work
unij share a oommon demographic
attribute, such as age, gender, race,
educaliooal level, or leng1h of service
in an 0
~
Ill
“‘ “‘ <(
EXHIBIT 9-2 Conflict-Handling Strategies and Accompanying Behaviours
"' c
~ ..
l!
e
c
i
·"' !
0
~
"' . ., ..
"' 0
~
g>
~
” > ·;:
” ~
..
• 2:
t: ..
::: ..
c
::::,
Forcing
Satisfying one’s own interests
without concern for the other’s
interests
• Make threats and bluffs
• Make persuasive arguments
• Make positional commitments
Problem solving
Clarifying differences to find
mutually beneficial outcomes
• Exchange information about
priorities and p re ferences
• Show insights
• Make trade-offs between
important and unimportant issues
Compromising
Giving up something to reach an
outcome (done by both parties)
• Match other’s concessions
• Make conditional promises
and threats
• Search for a m iddle ground
Yielding
Withdrawing from or ignoring
conflict
Placing the other’s interests above
one’s own
• Don’t think about the issues • Make unilateral concessions
• Make unconditional promises
• Offer help
Uncooperative Cooperat ive
COOPERATI VENESS
Jl’ying to satisfy the other person’s concerns
Sources: Based on K. W. Thomas, “Conflict and Negotiation Processes in Organizations,• in Handbook
of Industrial and Organizational Psychology, vat. 3, 2nd ed., ed. M . D. Dunnette and L. M. Hough (Palo
Alto, CA: Consulting Psychologists Press, 1992), p . 668; C. K. W. De Dreu, A. Evers, B. Beersma,
E. S. Kluwer, and A . Nauta, • A Theory-Based MeastXe of Conflict Management Strateges in the
‘M:>rkplace,” Journal of Organizational Behavior 22, no. 6 (Septerrtier 2001), pp. 645-668; and D. G. Pruitt
and J. Rubin, Social Conflict: Escalation, Stalenate and Settlement (New York: Random House, 1986).
A review that examined the effects of these behaviours across mu ltiple stud ies found
that openness and problem solving were both associated with superior group perfor-
mance, whereas avoiding and forcing stra tegies were associated with significantly worse
group performance.23 These effects were nearly as large as the effects of relationship
conflict. This further demonstrates that it is not just the existence of confl ict or even
the type of confl ict that creates prob lems, but also the ways people respond to conflict
and manage the process once conflicts arise.
Research shows that whi le peop le may choose among the strategies, they have an
underlying d isposition to handle conflicts in certa in ways.24 In addition, some situa-
tions call for particular strategies. For instance, when a small child insists on trying to
run into the street, a parent may need a forcing slrategy to resuain the ch ild. Co-workers
who are having a conflict over setting dead lines to comp lete a project on time may
decide that problem solving is the best strategy to use.
OB in Action-Choosing Strategies to Deal with Conflicts indicates the situations in
which each strategy is best used.
What Can Individua ls Do to Manage Conflict?
Individuals can use a number of confl ict resolution techniques to try to defuse conflict
inside and outside of the workplace. These include the following: 25
• Problem solving. Requesting a face-to-face meeting to identi fy the prob lem and
reso lve it through open discussion.
Chapter 9 Conflict and Negotiation 3 19
.. _
~ OB ~cr10N
Choosing Strategies to Deal w ith Conflicts
Fo rcing
-+ In emergencies
-+ O n important b ut unpopu lar issues
-+ O n vita l iss ues when you know you are right
-+ Against p eople who take a dvantage of no ncompeti-
tive behaviour
Pro blem solv ing
-+ If b oth sets of concerns are to o important for
compromise
-+ To m erge different p erspectives
-+ To gain commitment through a co nsensus
-+ To mend a rela tio nship
Avoiding
-+ When an issue is trivial
-+ When your concerns wo n’t be m et
-+ When potential disruption out”1eighs the ben efits
of resolution
-+ To let people co o l down and regain perspective
Yielding
-+ When you fi nd you are wro ng
-+ To show your reasonableness
-+ Wh en issu es a re more impo rtant to oth ers than
yourself
-+ To build social credits for later issues
-+ Wh en h armony a nd s tab ility are especially
important
Compromis ing
-+ When goals are important but not worth more
assertive approaches
-+ When oppo nents are committed to mutually
exclus ive go als
-+ To achieve te mporary settlemen ts to complex
issues
-+ To arrive at exp edient s olutio ns u nder lime
pressure26
• Developing overarching goals. Creating a shared goal that requires both parties
to work together, and motivates them to do so.
• Smoothing. Playi ng down differences wh ile emphasizi ng common interests
with the other party.
• Compromising. Agreei ng with the other party that each will give up someth ing
of val ue to reach an accord.
• Avoiding. Withdrawing from or suppressing the conflict.
The cho ice of techn ique may depend o n how serious the issue is to you, wh ether you
take a win – win or a win-lose approach, and your preferred confl ict management style.
When the co nflict is specifically work-rela ted, add itional techn iques m ight be used:
• Expansion of resources. The scarcity of a resource- say, money, promotion
opportu nities, office space- ca n create conflict. Expansio n of the resource ca n
create a win- win solution. (Mo ney is often the issue in pro sports strikes, as
Point/ Counterpoint on page 338 shows.)
• Authoritative comma.nd. Man agement can use its formal a uthority to resolve the
co nflict and then commu nicate its desires to the parties invo lved.
• Altering the h1u11an variable. Behavioural change tech niques such as human
relations trai ning ca n alter attitudes an d beh aviours that cause confl ict.
320 Part 3 Interacting Effectively
~ OB ~cr10N
Handling Personality Conflicts
Tips for employees having a personality conflict
-+ Communicate d irectly with the other person
to resolve the perceived conflict ( emphasize
problem so lving and common objectives, not
personal ities).
-+ Avoid dragging co-workers into the conflict.
-+ If dysfunctional confl ict persists, seek help
from direct supervisors or human resource
specialists.
Tips for th ird-party observers of a personality
confl ict
-+ Do not take s ides in someone else’s personal-
ity conflict.
-+ Suggest th e parties ,vork th ings out
themselves in a constructive and positive
way.
-+ If dysfunctional confl ict persists, refer the
problem lo parties’ direct supervisors.
Tips for managers whose emp loyees are having a
personal ity confl ict
-+ Investigate and d ocument conflict.
-+ If appropriate, take corrective action ( e.g.,
feedback or behaviour shaping) .
-+ If necessary, attempt informal dispute
resolu tion.
-+ Refer difficult conflicts lo human resource
specialists or h ired counsellors for formal
resolution attempts and other interventions. 27
• Altering the stn1ct11ral variables. The formal organization
structure and the interaction patterns of conflicting parties
can be changed through job redesign, transfers, creation of
coordina ti ng positions, and the like.
Resolving Personality Conflicts
Personality conflicts are an everyday occurrence in the work-
place. A recent study found that Canadian supervisors spend
about 16 percent of their time handling d isputes among
employees.28 A variety of factors lead lo personal ity conflicts
al work, includ ing the follow ing:29
• Misunderstandings based on age, race, or cultural d ifferences
• Intolerance, prejudice, d iscrim ination, or b igotry
• Perceived inequities
• Misunderstandings, rumours, or falsehoods abou t an indi-
vidual or group
• Blaming for mistakes or mishaps (finger-pointing)
Persona lity conflicts can result in lowered productivity
when people find it difficult to work together. The individuals
experiencing the conflict may seek sympathy from other mem-
bers of the work group, causing co-workers to take sides. The
idea l solution wou ld be for the two people having a conflict
lo work it out between themselves, without involving oth-
ers, but this does not always happen. OB in Action- Handling
Personality Conflicts suggests ways of dealing with personal ity
confl icts in the workp lace.
Conflict Outcomes
The action – reaction in terpl ay between conflicting par-
ties creates consequences that are f11nctional, if the conflict
improves the group’s performance, or dysfunctional, if it hinders
performance.
Conflict is constructive when it improves the quality of
decisions, stimulates creativity and innovation, encourages
interest and curios ity among group members, provides the
medium for prob lems to be aired and tensions released, and
fosters self-evaluation and change. Mi ld conflicts also may generate energizing emotions
so members of groups become more active, energized, and engaged in their work.30
Dean Tjosvold of Lingnan Un iversity in Hong Kong suggests three desired outcomes
for conflict:31
• Agreement. Equitable and fair agreemen ts are the best outcome. If agreement
means that one party feels exploited or defeated, th is will l ikely lead to further
conflict later.
• Stronger relationships. When confl ict is reso lved positively, this can lead to bet-
ter relationships and greater trust. If the parties trust each other, they are more
likely to keep the agreements they make.
• Learning. Handling confl ict successfully leaches one how to do it better next time. It
gives an opportunity lo practise the skills one has learned about handling conflict.
RESEARCH FI NDINGS: The Constru ctive
Effects of Conflict
Chapter 9 Conflict and Negotiation 3 21
Research studies in diverse settings confirm that conflict can be functional
and improve productivity. Team members with greater d ifferences in work sty les and
experience also tend to share more information with one another.32
These observations lead us to predict benefits to organ izations from the increasing
cultural divers ity of the workforce. That is what the evidence indicates, under most
cond itions. Heterogeneity among group and organization members can increase cre-
ativity, improve the qual ity of decis ions, and facil itate change by enhancing member
flexibi lity.33 Researchers compared decision-making groups composed of all-Caucasian
individuals with groups that also contained members from Asian, Hispanic, and Black
ethnic groups. The ethnically d iverse groups produced more effective and more feas ible
ideas, and the unique ideas they generated tended to be of higher quality than the
unique ideas produced by the all-Caucasian group.
Below we examine what research tells us abou t the constructive effects of confl ict.
The above research findings suggest that confl ict within a group can lead to strength
rather than weakness. However, factors such as personality, social support, and com-
mun ication moderate how well groups can deal with internal con flict. Al an individual
level, both a person’s personality (agreeableness) and h is or her level of socia l support
influence that person’s response lo conflict. Agreeable employees and those with lower
levels of socia l support respond to confl ict more nega tively.34
Open communication is important to resolving confl ict. Group members who
discuss differences of op inion open ly and are prepared to manage confl ict when it
arises resolve conflicts successfully.3 5 Group members \V ith cooperative confl ict styles
and a strong underlying identification to the overa ll group goals are more effective
than those with a more competitive style.36 Managers need to emphasize shared
interests in resolving conflicts, so group members who disagree with one another
don’t become too entrenched in their points of view and start to take the conflicts
personally.
The destructive consequences of conflict on the performance of a group or an
organization are generally well known: Uncontrolled opposition breeds d isconten t,
wh ich acts to dissolve common ties and eventually leads lo the destruction of the
group. A substantial body of literature documents how dysfunctional conflicts can
reduce group effectiveness.37 Among the undesirable outcomes are poor communica-
tion, reduced group cohesiveness, and subord ination of group goals due to infighting
among members. All forms of conflict- even the functional varieties- appear to reduce
group member satisfaction and trust.38 Wh en active discussions tum into open confl icts
between members, information sharing between members decreases significantly.39 At
the extreme, conflict can bring group functioning lo a halt and potentially threaten the
group’s survival.
Negotiation
In the U nifor-G M contract negotiations, both parties had things they wanted to achieve at the
bargaining table.40 GM wanted to keep its labour costs low, and in particular restructure the
pension plan for employees to make it more affordable for the company. Unifor wanted guar-
antees about the Oshawa plants staying open, as well as higher wages and no concessions on
the pension plan.
I In negotiations, one side sometimes has a better BATNA (best alternative to a negotiated agreement). Unifor’s BATNA, at least in the short term, was for members to go on strike, making
322 Part 3 Interacting Effectively
negotiation A process in 1vhic~
two Of more parties exchange goods
Of services and try lo agree on the
exchange rate for them.
I it impossible tor GM to produce cars. It is not clear what GM’s BATNA was, although i t could
• consider whether shutting down the Oshawa plants would be a desirable thing.
Denn is DesRosiers, an automotive industry consultan t in the Toron to area , felt that
Unifor was in a better overall position . Engines, transmissions, and powertrains are built at a
St. Catharines plant. “If canadians don’t produce the engines, GM doesn’t produce the cars in
the United States,” OesRosiers said. “There’s going to be an awful lot ot rhetoric at the table,
I but at the end of the day Unifor is going to be the perceived winner in all this.” How do perceptions ot fairness influence the negotiation process?
Earlier in the chapter, we reviewed a number of confl ict reso lution strategies. One well –
developed strategy is to negotiate a reso lution. Negotia tion permeates the interactions
of almost everyone in groups and organ izations: Labour barga ins with management;
managers negotiate with emp loyees, peers, and senior management; sa lespeople nego-
tiate with customers; purchasing agents negotiate with suppl iers; employees agree to
cover for one another for a few minutes in exchange for some past or future benefi t. In
today’s loosely structured organizations, in wh ich members work with colleagues over
whom they have no direct authority and with whom they may not even share a com-
mon boss, negotiation skills are critical.
We define negotiation as a process in which two or more parties try to agree on the
exchange rate for goods or services they are trad ing.41 Although we commonly th ink of
the outcomes of negotiation in one-shot economic terms, like negotiating over lhe price
of a car, every negotiation in organizations also affects the relationship between nego tia-
tors and the way negotiators feel about themselves.42 Depending on how much the
panies are going to interact with one another, sometimes maintaining the social relation-
sh ip and behaving ethically will be just as imponant as achieving an immediate outcome
of barga ining. Note lhat we use the terms negotiation and bargaining interchangeably.
Within a negotiation, individuals have issues, posi tions, and interests. Issues are
items that are specifically p laced on lhe barga ining table for discussion. Positions are
the individual’s stand on the issues. For instance, salary may be an issue for d iscussion.
The salary you hope to receive is your position. Finally, interests are the underlying con-
cerns that are affected by the nego tiation resolution. For instance, the reason that you
In general, people negotiate more effectively within cultures than between them. Politeness and positiv-
ity characterize the typical conftict-avoidant negotiations in Japan such as those of labour union leader
Hidekazu Kitagawa (right), shown here presenting wage and benefits demands to lkuo Mori, president of
Fuji Heavy Industries, maker of Subaru vehicles.
C hapter 9 Conflict and Negot iation 3 2 3
m ight want a six-figure salary is that you are trying to buy a ho use in Vancouver, and that
salary is your only hope of being ab le to make mortgage payments.
Negotiators who recognize the underly ing interests of themselves and the other party
may have more flexibility in achieving a resolution. For instance, in the example jus t
given, a n emp loyer who offers you a mortgage at a lower rate than the ban k does, or
who provides you with an interest-free loan that can be used agai nst the mortgage, may
be ab le to address your underlying in terests wi thout actually meeting your salary posi-
tion. You may be satisfied with th is alternative, if you u ndersta nd wha t your interest is.
Below we d iscuss bargaining strategies and how to negotiate.
Bargaining Strategies
There are two general app roach es to negotiatio n: distributive bargaining and integrative
bargaining.43 These are compared in Exhibit 9-3.
Distributive Bargaining
Dis tributive bargaining is a negotiating strategy that
operates under zero-s um (win- lose) co nditions. That is,
any gain I make is at your expense, and vice versa. You see
a used car ad vertised for sale o nline. It appears to be just
what you have been looking to buy. You go out lo see the
car. H’s great, an d you want it. The owner tells you the ask-
ing price. You do n’t want to pay that much. The two of you
then negotiate over the price. Every dollar you can get the
seller to cu t from the car’s price is a dollar you save, and
Should yo u try
to win at any
cost ,,vhen you
bargain’?
every d ollar more the seller can get from you comes at you r expense. So the essence o f
d is tributive barga ini ng is negotiating over who gets what share of a fixed pie. By fixed
pie, we mean a set amoun t of goods or seNices to be d ivided up. When the p ie is fixed,
or the parties bel ieve it is, they tend to bargain distributively.
A pa rty engaged in distributive barga in ing focuses on trying lo get the opponent lo
agree to a specific target point, or lo get as close to it as possible. Examples of this tactic
are persuad ing your opponent of the impossibi lity of reach ing h is or her target point
and the advisabi lity of accepti ng a settlement near yours; arguing that your target is fa ir,
whi le your opponent’s is not; and attemp ting to get your oppo nent to feel emotionally
gen erous toward you an d thus accept an outcome close lo your target po int.
When engaged in d istrib u tive bargain ing, o ne of the b est things you can do is to
make the first offer, and lo make it an aggressive one. Maki ng the first offer sh ows
EXHIBIT 9-3 Distributive vs. Integrative Bargaining
Ba rgaining
Characteristic
Goal
Motivatio n
Focus
Interests
Informatio n sharing
Distributive
Bargaining
Get as much of t he pie as
possible
W in-l ose
Posit i ons (” I can’t go
beyond t his point on this
issue.” )
Opposed
Low (Sharing informati on
will on ly allow oth er party
to take advantage)
Durati on of relationship Short term
Integrative
Bargaining
Expand the pi e so that both
parties are satisfied
W in- w in
Interests (“Can you expl ain w hy
this issue is so important t o you?” )
Congruent
High (Sharing informatio n will
allow each party to fi nd ways to
satisfy interests of each party)
Long term
Source: Based on R. J . Lewicki and J. A. Utterer, Negotiarion (Homewood, IL: Irwin, 1985), p. 280.
0 Contrast distributive and
integrative bargaining.
distributive bargaining Nll9otia-
tion that seeks to
Vi! ” , r
began, with a report issued in
March 2017. Among the con –
clusions of the report were:
• Many witnesses described a
“culture of fear” in which staff
felt vulnerable and at risk of
personal attack and ridicule.
• There was evid ence that
the trustees’ public attack
of the work of the senior
staff undermined the staff
and publicly embarrassed
and humiliated them .
• Indi vidual trustees acted
contrary to the VSB Code
of Ethics and engaged in
conduct that constituted
bullying and harassment.
Because the trustees had
been fired by the provincial
government months before the
report was issued, no disciplin-
ary action was taken; however the
VSB has since put together guide-
lines against bullying for trustees
and staff. Workplaces in many parts
of Canada are required to address
bullying. Bullying itself is not illegal,
but some forms of it – for example,
threats, assault, and harassment –
are included in the Criminal Code.
\Vhat Is
Happening in Our
\Vorkplaces?
Workplaces today receive high ly
critical reviews, being called every-
th ing from ‘ uncivil” to “toxic.• The
trend has been growing over time.
One study showed that one-quarter
of those surveyed in 1998 reported
rude treatment at work at least once
a week. In 2005, nearly half reported
experiencing that behaviour, wh ile in
2011 just over half reported the same.
Peop le are feeling more stressed
at work, often as the result of heavier
wo rkloads due to layoffs of fellow
employees, pressures for increased
product ivity, and managers who do
not know how to manage. Al l of th is
has resulted in an increase in uncivil
and aggressive workplace behaviours.2
What does workplace civility mean?
Essentially it means acting politely and
respectfully toward others.3 Worllplace
incivilit)’ means being disrespectful and
uncaring about how one treats oth-
ers. Different workplaces have d ifferent
norms for what demonstrates mutual
respect; however, many provinces now
require organ izations to develop poli-
cies regard ing workplace bullying and
respectful workplace p ractices.
Some behaviour goes beyond
incivil ity to workplace bu lly ing. The
Workplace Bullying Insti tute defines
workplace bullying as
repeated, health-harm ing mis-
treatment of one or more persons
(the targets) by one or more per-
petrators. It ,s abusive conduct
that is:
• Threa ten in g, humil iating, or
intim idating
• Work interference -sabotage-
which preven ts wo rk from get-
ting done
• Verbal abuse4
What Do We Know about
Workplace Bullying?
There are few statistics on workplace
bu llying in Canada. The Workp lace
Bullying Insti tu te conducts the larg-
est scien tific study of bullying in the
Un ited Sta tes, and a recent study of
1000 adults found the following:5
• The percentage of respondent~ who
have suffered abus ive conduct at
work is 27 percen t.
• The percentage of respondent~ who
have witnessed abusive conduct at
work is 21 percent.
• A full 72 percent of respondents
are aware tha t workplace bullying
happens.
• Men are s ignificantly more likely to
engage in bullying behaviour than
women ( 69 percent vs. 31 percent).
• Women who bully are sign ificantly
more likely to bully women rather
than men (68 percent vs. 32 percent).
• Men who bully are more likely to
target women rather than men (5 7
percent vs. 43 percent) .
• Overall, 60 percent of bullying tar-
gets are women.
The evidence suggests that rudeness,
bullying, and violence are a ll on th e
rise. The behaviours are harmful in the
workplace.7 The victims of these nega-
t ive behaviours a re not the only ones
who suffer, however. Witnesses to bul-
lying a lso suffer.8
Not a ll nega tive behaviour in the
workplace is bullying. Yes, bullying is
a workplace issue. However, it’s some-
times hard to know if bullying is hap-
pening at the workplace. Many studies
•••
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
• •••••••••••••••
FACT BOX
What happens when employees
experience rudeness in the work-
p lace?
• 48o/o decreased their work effort,
• 47% decreased their time at work,
• 38% decreased their work quafrty,
• 66% said their performance
declined,
• 80% lost work time worrying
about the incident,
• 63% lost time avo iding the
offender, and
• 78 % said their comm itment to
the o rganizatio n d eclined .6
….. –· ……. –·~—–.-.
acknowledge that there is a “fine line”
between s trong management and bul-
lying. Comments that are objective and
are intended to provide constructive
feedback are no t usually cons idered
bullying, but rather are intended to
assist the employee with their work.
WorkSafeBC clarifies by noting that
bullying and harass ing behaviour does
not include the following behaviours, if
approached in an appropriate manner:9
• Expressing differences of opin ion
• Offe ring construct ive feedback,
gu idance, or advice about work-
related behaviour
• Taking reasonable action related to
the managemen t and d irection of
workers or the place of employment
(e.g., an emp loyer or supervisor
managing a worker’s performance,
tak ing reasonable discipl inary
actions, assigning work)
Workplace Violence
Recently, researchers have suggested that
incivility may be the beginn ing of more
negative behaviours in the workplace,
includ ing aggression and violence. 10
345
Kevin Douglas Add ison chose a
deadly way to exhibit the anger he fe lt
toward h is former employer. In April
2014, he took a shotgun and opened
fire at h is former place of employment,
the Western Forest Products mi ll in
Nanaimo, British Columbia, killing two
employees (one of them a foreman)
and injuring two others. The mill had
closed in 2008 and had re-opened in
a smaller capacity in 2010. Co-workers
speculated that financia l problems as
well as not being rehired when the mill
re-opened may have Jed Addison to
engage in the shooting. Roy Robertson,
a retired mill employee, called Addison
•a n absolutely super n ice guy. But me,
you, anyone e lse can crack under pres-
sure. I don’t know his situation.’ 11
Workplace vio lence, acco rding to
the International Labour Organization
(ILO), includes
any incident in wh ich a person is
abused, threatened or a~saulted
in circumstances relating to their
work. These behaviours would
o rig inate from customers or co-
workers at any level of the orga-
nization. This definition would
include all forms of harassment,
bullying, intimidation, physical
th reats, assaults, robbery and
other intrus ive behaviour. 12
The numbers on wo rkplace abuse
vary by occupation. Overall, in a 2016
study by Vector Poll, JS percen t o f
Canadian employees reported experi-
encing workplace abuse, hara~sment, or
assault during the previou~ 24 months. 13
In a 2016 Canadian Federation of Nurse
Unions (CFNU) s tudy, 61 percent of
nurses reported experiencing those same
behaviours in the previous 12 months. 14
A 2017 report from the Ontario English
Cathol ic Teachers’ Association found
that ·60 percent o f (those] teachers
have personally experienced violence
in schools, while 70 percent have wit-
nessed iL’ 15
Glenn French, president and founder
of the Toronto-based Canadian Initiative
on Workplace Violence, acknowledges
346
that there is less gun violence in the
workplace here than in the United
States: ·vie do it the Canadian way: we
don’t kill you, we’ll just make your life
a living hell by harassing and intimidat-
ing you on the job. The face of violence
in Canada tends to be far more indirect
than what we’ve seen (in the Western
Forest Products mill in Nanaimo] .• 16
Sandra Rob inson and Jennife r
Berdahl, both professors at the Sauder
School of Business at the University of
British Columbia, have recen tly been
looking at the effects of being ignored
( ostracized) in the workplace. Thei r
research found that while people tend
to th ink that ostracism is Jess offensive
than harassment, the people who are
ostracized seem to suffer greater effects.
•The experience of ostracism has a
b igger impact on job d issatisfaction,
on psychological well-being, on self-
reported physical health, on intentions
to quit the company,’ Robinson said. 17
The study found that ostracism was
quite widespread: 71 percent of employ-
ees reported being ostracized in the pre-
vious six months, compared with 48
percent who reported being bullied. 18
Those who are ostracized are more
l ikely to quit the ir jobs wi thin three
years than those who have been bu l-
lied. Robinson concluded that because
ostracism is less visible, it’s harder to
fighL ·victi ms of ostracism really feel
they can’t do anything about it. It’s
very difficult to call-out the absence
of behaviour. A lot of people end up
quitting for their own well-being.” 19
What Causes
Incivility (and
Worse) in the
Workplace?
If emp loyers and employees are act-
ing with less civil ity toward each other,
what is causing this to happen?
Managers and employees often have
differen t views of the employee’s role
in the organ ization. Jeffrey Pfeffer, a
professor of organizational behaviour
at the Graduate School of Bus iness
at Stanfo rd Un iversity, notes that
many companies don’t really value
their employees: •Most managers, if
they’re being honest with themselves,
will adm it it: When they look a t their
people, they see costs, they see salaries,
they see benefits, they see overhead.
Very few companies look at their peo-
ple and see assets:20
Most employees, however, like to
think that they are assets to their orga-
n ization. The real ization that they are
simply costs and not valued members
of an o rganization can cause frustra-
tion for employees.
In addi tion, •employers’ excessive
demands and top-down style of man-
agement are contributing to the rise of
‘work rage,” claims Gerry Smith, author
of Wor/1 Rnge.21 He cites demands com-
ing from a variety of sources: • over-
time, downsizing, rapid technological
changes, company restruct uring and
difficulty balancing the demands of
job and home.”22 Smith worries about
the consequences of these demands: •1f
you push people too hard, set unreal-
istic expecta tions and cut back the ir
benefits, they’re going to s trike back.’23
Sm ith’s work supports the findings
of studies that repo rt that the most
common cause of anger and bullying
is the actions of supervisors o r manag-
ers.24 Other common causes of anger
identified by the researchers include
lack of productivity by co-workers and
others, t ight deadl ines, heavy work-
load, in teraction with the public, and
bad treatment. The inset Do You Have
a Bad Boss? describes some of the bad
behaviour of bosses.
One s tudy found that how man-
agers deal w ith d isplays of anger at
work can do much to defuse tensions.
Co-workers wan t to see the manager
take some responsibil ity for a fellow
employee’s anger, rather than d iscipl in-
ing the employee, if the manager or the
working condi tions are the source of
the anger. 25
Do You Have a Bad Boss?
You know You have a bad boss if he or she 26
• does not even want 10 be a b · ..
Some research on the psychologi-
cal contract suggests that violations of
im plici t o r explici t prom ises may not
be necessary to affect employee inten-
tions to s tay w ith the o rgan ization
and/o r engage in cit izensh ip behav-
iours. Professors Samantha Montes and
David Zweig of the Rotman School of
Management found that em p loyees
expect decent pay, deve lopmental
opportun ities, and support (whether
o r not employers p rom ise to deliver
such); and when th ey don’ t receive
those th ings, the ir behaviour toward
the organ ization becomes negative.29
• ca . oss nnot admit mistakes
• Spends too much time in the trenches
• has unreasonable expectations
: exPects everyone to be like him or her
fads to see employees as hum
• . ans
,s unable to build a cohesive team
The Psychological
Contract
Some researchers have looked at this
frustrat ion in terms of a b reakdown
of the psycho logical contract fo rmed
between employees and em ployers.
An employer and employee begin
to develop psychological contracts as
they are firs t introduced to each other
in the h iring p rocess. These contracts
contin ue over ti me as th e employer
and the employee come to understand
each o ther’s expecta tions abou t the
amounts and quality of work to be per-
formed and the types of rewards to be
g iven. For instance, when an employee
is con tinually asked to work late and/
or be ava ila b le at a ll hours through
pagers and ema il, the employee may
assume tha t do ing so will result in
g reater rewa rds or fas ter promo tion
down the line. Th e em p loye r may
have had no such intention, and may
even be th ink ing th a t the employee
shou ld be grateful sim p ly to h ave a
job. Later, when the employee does not
get expected (though never prom ised)
rewards, he o r s he is disappoin ted.
San dra Robinson, an organizational
behaviour p rofessor at the Sauder
School of Busines.~ at the University of
British Columb ia, and her colleagues
have found th a t when a psychologi-
ca l contract is v iolated (pe rceptually
or actually), the relationship between
the em p loyee and t h e emp loyer is
damaged. The result can be a Joss of
t rust. 27 The b reakdown in trust can
cause employees to be less ready to
accept decis ions o r obey rules. The e ro-
sion of trust can also lead employees to
take revenge on the employer. So they
don’t carry out thei r end of a task. Or
they refuse to pass on messages. They
engage in any number of sub tle and
not-so-subtle behaviou rs tha t affect
the way work gets done-or p revents
work from getting done. A recent study
sugges ts th a t perceptions of th e psy-
chological contract vary by culture. 28
The Toxic
Organization
Pfeffer suggests that compan ies have
become ‘toxic places to work. •3o He
notes that compan ies, particularly in
Silicon Valley, ask their employees to
sign contracts on the firs t day of work
indicating the employee’s understand-
ing that the company has the right to
fire at w ill and for any reason. Some
employers a lso ask their employees to
choose between having a life and hav-
ing a career. Pfeffer relates a joke people
used to tell about t\,licrosoft: “We offer
flex ible t ime-you can work any 18
hours you want.”31 This kind of attitude
can be toxic to employees, although it
does not imply that Microsoft is a toxic
HoW to Deal with a Toxic Boss
/ly lt’s difficult but if you t,y
d d ‘t take it persona . ‘ • EmpathiZe, an on r e it may help you cope more
to understand your boss’s perspec iv ‘
effectively. . . . propriate or abusive, stand up for
• [)raw a ffne. When behaviour is _,nap rth being harassed or abused.
point no ]Ob IS WO
yourself. At some ‘ . . . If u take revenge, you become
• Don’t sabotage or be v1nd1ct,ve. yo
part of the problem. fi d it useful to have notes at
k oles You may n 32 • Be patient and ta e n . . tr ht on you.
. I hould the boss shine the spo ig
your d1sposa s
3 4 7
employer. The inset How to Deal with
a Toxic Boss gives tips, should you fin d
yourself in that situation.
Wha t does it mean to be a toxic
organ ization? The inset \,Vfrat Does a
Toxic Organization Looll Like? describes
one. The late p rofessor Peter Frost
of the Saud e r Schoo l of Bus iness at
t h e Un ivers ity of Brit is h Co lumb ia
noted that there w ill always be pain in
organ izations, but that sometimes it
becomes so intense or prolonged that
cond itions w it h in th e organ iza tion
begin to break down. In other words,
the situation becomes toxic. This is not
dissim ilar to what the liver or kidneys
do when toxins become too intense in
a human body.33
Wha t causes organ iza tions to be
toxic? Like Pfeffer, Robinson and col-
leagues identify a number of factors.
Downsiz ing and organizational change
a re two main factors, particularly in
recen t years. Sometimes o rganizations
experience unexpected evenL~-such a~
the sudden death of a key manager, an
unwise move by sen io r management,
s trong competition from a start-up
company-that lead to toxicity. Other
organ iza tions a re toxic th roughout
their system d ue to policies and prac-
tices that create d istress. Such factors
as unreasonable s tretch goals or pe r-
fo rmance targets, or un relenting inter-
nal competit ion, can crea te tox icity.
There are also toxic managers who lead
through insens itivity, vindictiveness,
and fa ilure to take responsibility, o r
they a re control freak~ o r a re uneth ical.
What Are the Effects of
Incivility andToxicity in
the Workplace?
In gene ra l, researchers have foun d
that the effects of workplace anger a re
sometimes subtle: a hostile work envi-
ronment and the tend ency to d o only
enough work to get by. 34
348
Those who feel chronic anger in the
wo rkplace are mo re likely to report
“feelings of betrayal by the organiza-
t ion, decreased fee lings of loyalty, a
decreased sense that respondent values
and the organization’s values are sim i-
lar, a decrea~ed sense that the employer
t reated the respondent w ith dign ity
and respect, and a decreased sense that
employers had fu lfilled p rom ises mad e
to responden ts. •35 So do these feel-
ings make a difference? Apparently so.
Researchers have found that those who
fe lt angry wi th their emp loyers were
less likely to put forth their best effort,
more likely to be competitive toward
other employees, and less likely to sug-
gest •a quicker and better way to d o
their job.’ 36 All of these act ions tend
to d ecrease the prod uctiv ity possible
in the workplace.
It’s not just those who work for an
organ ization who are affected by inci-
vility and toxicity. Poor service, from
ind ifference to rudeness to ou tright
hosti lity, characterizes many transac-
t ions in Canadian businesses. “Across
the country, better business bureaus,
prov incia l government consumer-
help agencies and media ombudsmen
repo rt a lengthen ing l itany of com-
plaints about contractors, car dealers,
•• •
•
•
•
•
•
•
•
• ••• ••••••• ••••••
FACTBOX
: The effects of incivility on the
workplace a re h igh: • •
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
• 80% of workers lost work time
worrying about an offending
incident .
• 78o/o said their commitment to
the organization declined.
• 66% reported their
performance declined.
• 48% who had been on the
receiving end of incivility
intentionally decreased their
work effort .
, • 47% intentionally decreased
•
• the time spent at work.
•
•
•
•
•
•
•
•
•
• 80% of customers who
witnessed rudeness among
employees were unlikely to
return to the business. 37
repa ir shops, moving compan ies, a ir-
lines and departmen t s to res.’ 38 Th is
suggests t h a t custome rs and cl ients
may well be feeling the impact of inter-
nal workplace dynam ics.
What Does a ToxJc Organization Look Like?
ToXJc organizations have the folfoWing cha . .
• . . . ractenst,cs:39
inab1ilty to achieve OPeration goals and .
• problem-sol · . commitments
ving Processes drrven b t .
• POor internal communication Y ear with few good decisions
• huge amounts of waste that ~
rework esult from POor decisions, and lots of
• interpersonal relationships driven b . .
agendas Y manipulative and self-centred
F A C E O F F
Manners are an over-rom anticized
concept. The big issue is not that
employees need to be concerned
about their mamers. Rather, employers
should be paying better wages.
The dynam ics in t h e wo rkplace
may be starting to change. In 2016 the
Faculty of tvledicine at UBC circulated
a video to its instructors that illustrated
issues of s tudent mistreatment. Viewers
were asked to ·avo id putting stud ents
on the spot w ith questions, to m ini-
m ize ‘cold and cl in ical’ interactions,
and to cultivate ‘safe’ learn ing environ-
men ts for the young residents.• Such
a v ideo wou ld not h ave been made
JO years ago. But the cu rrent genera-
tion of students is d emanding more
respect and it has less tole rance for
being exposed to bullying behaviour.
This may tum out to be a good th ing.4 0
Legislation to Prevent
Bullying
The Canad ian Cri m inal Cod e has no
bullying offence, although depend-
ing on the ci rcumstance, other charges
cou ld be made, such as cr im inal
harassment, uttering threa ts, assaul t,
and sexua l assault. On a p rov in-
c ial level, only some p rovinces have
ad opted legis la tion d irected at bully-
ing. O thers are still working out poten-
tial approaches.4 1 But some aspects o f
bullying could be dealt wi th in so me
p rovinces through exis ting provincial
vio le nce and harassmen t legis lation .
For ins ta n ce, in 2012 WorkSafeBC
s ta rted to accept m ental d iso rder
cla ims that we re the results of •a
cu mulative series o f s ign ifica n t work-
related stresso rs. • That was a m ajor
The Golden Rule “Do unto o t hers
as you would have o thers do unto
you,” should still have a role in today’s
workplace. Being nice pays off.
sh ift for the o rgan ization, which pro-
motes workplace heal th and safety in
Brit ish Columb ia. Previously it had
only p rocessed cla ims fo r stress from
t raumatic events. Between 2012 and
2014, WorkSafeBC accepted 655 men-
tal s tress claims and pa id ou t more
than $ JO m ill ion in damages. Wh ile
the majority of claims were for trau-
matic incidents, about 30 percent were
for workplace s tress. ‘Forty-five to 50
people a re a pplying for benefits every
week. That’s an indica tion that there
are problems in the workplace,· says
Jennifer Leyen, d irecto r of special care
services for WorkSafeBC.42
WorkSafeBC requi res employers in
the province to have a pol icy in place
to prevent bullying and hara~smen t. It
also rem inds employers and employees
what bullying includes: insults, sabo-
tage, th reats. However, bullying does
not include negative work evaluations,
discipline, or firing. Some experts find
tha t th is new po licy is not enough,
howeve r. •1t overlooks o ther issues
like the damage caused by a constant
thrum of low-level incivility-the eye
roll ing, the interruptions, the d ism is-
s iveness ….. 43
RESEARCH EXERCISES
1. Look for data on violence and anger
in the workplace in other countries.
How do these data oompare with the
Canadian and .American data pre-
sented here? What might you con-
clude about how violence and anger
ill the workplace are expressed in d~-
ferent cultures?
2. Identify three Canadian organizations
that are trying to foster better and/
or less toxic environments for their
employees. Wllat kind of effect is this
having on the organizations’ bottom
Ines?
YOUR PERSPECTIVE
1 . Is tt reasonable to ru,;igest, as some
researchers have, that you,g people
today have not learned to be civi to
others or do not place a high prior-
ity on doing so? Do you see tlis as
one of the causes of ilciviltty ill the
workplace?
2. What should be done about manag-
ers who create toxictty in the work·
place while being rewarded because
they achieve bottom~ine results?
Should bottom-lile results justify their
behaviour?
WANT TO KNOW MORE?
If you wou ld like to read more on
this topic, see P. K. Jonason, S.
Slomski, and J. Partyka, “The Dark
Triad at Work: How Toxic Employees
Get Their Way,• Personality and
Individual Differences , February
2012, pp . 449-453; 8 . Schyns and
J . Schilling, “How Bad Are the Effects
of Bad Leaders? A Meta-Analysis
of Destructive Leadership and Its
Outcomes,” The Leadership Quarterly,
February 2013, pp. 138-158; and
Canadian Centre for Occup ational
Health and Safety, “B ul lying in the
Workplace,• www.ccohs.ca/oshan-
swers/psychosociaVbullying .html .
349
350
Organizational Culture
PA RT 4
SHAR I NG THE
ORGAN I ZATI ONA L VI SI ON
How
can Hyat t Hot els
effect ively manage a
g lobal corporation w it h multiple
hotel chains and thousands of
employees? A strong
organizat ional culture
is part of the
answer.
O Describe the com mon characteristics of organ izational culture.
f) Compare the functional and dysfunctional effects of organizational cultu re on people
and the organ ization.
9 Identify the factors that create and sustain an organization’s culture.
C, Show how culture is transmitted to employees.
0 Demonstrate how an ethical organ izational cultu re can be created.
0 Describe a positive organizational culture.
s CEO of Hyatt Hotels Corporation, Mark
Hoplamazian (pictured here) was concerned
with how he was going to introduce change
to his employees after the global hotel
company experienced significant growth
in 2013. 1 Hotels had been added to the brand, the
organization was entering new areas of the hos-
pitality industry, and he had to work with over
90 000 employees in 45 different countries.
This presented significant implementation
challenges. It was particularly vital for
Hyatt, spread across the globe and
highly decentralized, to make sure
its associates understood and Richard 1xew1AP images
shared the mission of the
company. To get the message across, Hoplamazian wanted to create a uniform employment expe-
rience for each employee, starting with a cohesive orientation program for new hires.
Management at Hyatt had to determine how to socialize new employees into the company’s
culture, while being mindful that there could be some glitches, with perhaps not all aspects
of the company’s culture translating equally well in the 45 different countries on six conti-
nents Hyatt was in. Hyatt has multiple brands, including Hyatt, Park Hyatt, Andaz, Grand
Hyatt, Hyatt Regency, Hyatt Place, and Hyatt House, and each services different
parts of the hotel customer market. Park Hyatt is the organization’s luxury brand.
Andaz is a boutique category. Several of the other Hyatt brands are full -service
hotels. Despite the differences in the needs they serve, the company’s prop-
erties “share core values across the Hyatt brand : exceptional guest service,
upscale amenities, popular food and beverage programs, and innovative interior
designs that incorporate local art and style.” These values need to be communicated
to all employees for the company to do well.
In this chapter, we show that every organization has a culture. We examine how that
culture reveals itself and the impact it has on the attitudes and behaviours of members of
that organization. An understanding of what makes up an organization’s culture and how it
is created, sustained, and learned enhances our ability to explain and predict the behaviour of
people at work.
• What does organizational cu lture do?
\ I I
‘ , : ;, :
,V,
, ‘
‘l’II E BIG IDEA
• Is culture the same as rules?
• What kind of organizational cultu re wou ld work best for you?
A slrong organizalional
cullure can guide
indi\’idual decisions
and help everyone \\’Ork
LogeLher LO\vard Lhe
scune goals.
351
352 Part 4 Sharing the Organizational Vision
O Describe the common
characteristics of
organizational culture.
organi zati onal culture A system
of shared meaning held by members
that distinguishes 1he organizalioo
from o1her organizations.
What Is Organizational Culture?
When Henry Mintzberg, professor at McG ill University and one of the world’s leading
management experts, was asked to compare organizational s tructure and corporate
culture, he sa id, ·culture is the soul of the organ iza tion- the bel iefs and values, and
how they are manifested. 1 think of the structure as the skeleton, and as the flesh and
blood. And culture is the soul that holds the thing together and gives it life force. “2
Organizational culture refers to a system of shared meaning held by members
that d istinguishes the organization from o ther organ izations.3 Mintzberg’s culture
metaphor provides a clear image of how to th ink about cu lture. Culture provides
stability to an organization and gives emp loyees a clear understand ing of “the way
things are done around here.• Culture sets the tone for how an organization operates
and how individuals within the organization interact. Th ink of the d ifferent impres-
s ions you have when a reception ist tells you that •Ms. Dettweiler• will be ava ilable
shortly, wh ile at another organization you are told that •Emma• will be with you as
soon as she gets off the phone. It’s clear that in one organization the ru les are more
formal than in the other.
Seven primary characteristics capture the essence of an organization’s culture:4
• Innovation and risk-taliing. The degree to wh ich emp loyees are encouraged to
be innovative and take r isks
• Attention to detail. The degree to which employees are expected to work with
precis ion, analysis, and attention to deta il
• Ouccome orientation. The degree to which management focuses on resu lts, or
ou tcomes, rather than on the techn iques and processes used to achieve these
ou tcomes
• People orient.ation. The degree to which management decisions take into con-
sideration the effect of outcomes on people within the organ ization
• Tea,n orienration. The degree to which work activities are organized around
teams rather than individuals
• Aggressiveness. The degree to which people are aggressive and competitive
rather than easygoing and supportive
• Stability. The degree to which organizational activities emphasize ma intain ing
the status quo in contrast to growth
Each of these characteris tics exists on a conti nuum from low to h igh .
When individuals consider their organization in terms of these seven characteristics,
they get a composite picture of the organization’s culture. This picture becomes the basis
for feelings of shared understand ing that members have about the organization, how
things are done in it, and the way members are supposed to behave. Exh ib it 10-1 dem-
onstrates how these characteristics can be mixed to crea te h ighly d iverse organ izations.
Organizational characteristics are even reflected in your classroom, as the Experiential
Exercise on page 376 shows.
Culture Is a Descriptive Term
If yo u have ever been in an organization (certainly you have been in many!), yo u
probably noticed a pervasive culture among the members. Organizational culture shows
how employees perceive the characteristics of an organization, not whether they like
them – that is, it’s a descriptive term. Research on organizational culture has sought to
measure how employees see their organization: Does it encourage teamwork? Does it
reward innovation? Does it stifle in itiative? In contrast, job satisfaction seeks to measure
Chapter 1 O Organizational Culture 3 53
EXHIBIT 10-1 Contrasting Organizational Cultures
Organi zation A
• Managers must fully document
all decisions.
• Creative decisions, change, and risks
are not encouraged.
• Extensive rules and regulations exist
for all employees.
• Productivity is valued over employee
morale.
• Employees are encouraged to stay
within their own department.
• Individual effort is encouraged.
Organization B
• Management encourages and
rewards risk-taking and change.
• Employees are encouraged to
“run with” ideas, and failures are
treated as •1earning experiences. ”
• Employees have few rules and
regulations to follow.
• Productivity is balanced with treating
its people right.
• Team members are encouraged to interact
with people at all levels and functions.
• Many rewards are team-based.
how employees fee l about the organization’s expectations, reward practices, and the like.
Although the two terms have overlapping characteristics, keep in m ind that organiza-
tional cu/cure is descriptive, whereas job satisfaction, for example, is eval uative.
Do Organizations Have Uniform Cultures?
Organ iza tional culture represents a perception of the organization that employees
hold in common. Statements about organizational cullure are valid only if individuals
w ith different backgrounds or al d ifferent h ierarchical levels describe their organiza-
tion’s cu ltu re in s imilar lerms.5 The purchasing depa rtment can have a subculture
that includes the core val ues of the dom ina nt culture, such as aggress iveness, p lus
add itiona l val ues u nique to members of tha t department, s uch as risk-taki ng. The
dominant culture expresses the core values a majority of members share a nd that
give an organization its distinct personality.6 Subcultures tend lo develop in large
J I dominant culture A system of
/,,., J shared meaning that expresses the
j core values shared by a majority of
Internet retailer Zappos understands how organizational behaviour affects an organization’s perfor-
mance. Accord ing to the Zappos Insights website, employees are encouraged “to create fun and a little
weirdness,” which helps the firm maintain a positive work environment.
_g the 0
Formal vs. Informal The more a new employee is segregated from the ongoing work setting and differentiated in some
way to make explicit his or her newcomer’s role, the more formal socialization is. Specific orientation and training programs
are examples. Informal socialization puts the new employee directly into his or her job, with little or no special attention.
Individual vs. Collective New members can be socialized individually. This describes how it’s done in many professional
offices. They can also be grouped together and processed through an identical set of experiences, as in military boot camp.
Fixed vs. Variable This refers to the time schedule in which newcomers make the transition from outsider to insider. A
fixed schedule establishes standardized stages of transition. This characterizes rotational training programs. It also includes
probationary periods, such as the 8- to 10-year “associate” status accounting and law firms use before deciding whether to
name a candidate as a partner. Variable schedules give no advance notice of their transition timetable. variable schedules
describe the typical promotion system, where individuals are not advanced to the nex1 stage until they are “ready.”
Serial vs. Random Serial socialization is characterized by the use of role models who train and encourage the
newcomer. Apprenticeship and mentoring programs are examples. In random socialization, role models are deliberately
withheld. The new employee is left on his or her own to figure things out.
Investiture vs. Divestiture Investiture socialization assumes that the newcomer’s qualities and qualifications are the
necessary ingredients for job success, so these qualities and qualifications are confirmed and supported. Divestiture
socialization tries to strip away certain characteristics of the recruit. Fraternity and sorority “pledges” go through
divestiture socialization to shape them into the proper role.
Sources: Based on J. Van Maanen, “People Processing: Strategies of Organizational Socialization,’ Organizational Dynamics, Summer
1978, pp. 19-36; and E. H. Schein, “Organizational Culture,’ American Psychologist, February 1990, p. 116.
These institutional practices are common in police departments, fire departments, and
other organiza tions that val ue rule following and order. Programs that are informal,
individual , variable, and random wh ile emphasizing investi ture are more l ikely lo give
newcomers an innovative sense of their role and methods of working. Creative fields,
such as research and development, advertising, and filmmaking, rely on these individual
practices. Most research suggests that high l evels of institutional practices encourage
person- organization fi t and h igh l evels of commi tment, whereas individual practices
produce more role i nnovation.62
The three-part entry social ization process is complete when
• The new emp loyee has become comfortable w i th the organization and his or
her job
• The new emp loyee has internalized the norms of the organ izati on and the
work group, and understands and accepts these norms
• The new emp loyee feels accepted by his or her peers as a trusted and valued
individual, is self-confident that he or she has the competence to complete the
job successfully, and understands the system- not only his or her own tasks
but also the rules, procedures, and informally accepted practices
• The new emp loyee understands how he or she will be eva lua ted and knows
what criteria w i ll be used lo measure and appraise h is or her work; he or she
knows what is expected and what constitutes a j ob ‘well done•
As Exh ib it 10 -5 shows, successful metamorphosis should have a posi live impact on
the new empl oyee’s productivity and comm itment to the organ iza tion. I t should also
reduce the tendency lo l eave the organizati on (turnover).
Researchers examine how emp loyee alti tudes change during social izati on by measur-
ing those attit udes at several points over the first few months. Several studies have now
documen ted pauerns of “honeymoons• and “hangovers• for new workers, showing
that the period of i nitial adj ustment is often marked by decreases i n job satisfaction as
ideal ized hopes come into contact with the real ity of organ izati onal l ife.63 N ewcomers
366 Part 4 Sharing the Organizational Vision
EXHIBIT 10-S How Organizational Cultures Have an Impact on Employee
Performance and Satisfaction
Objective factors
St rength
High
• Innovation and risk-
taking
• Attention to detail Perceived as Organizational r—~, culture /
Performance J
• Outcome orientation
• People orientation
Satisfaction I • Team orientation
• Aggressiveness
Low
• Stability
may find lhal lhe level of social supporl Lhey receive from supervisors a nd co-workers
is gradually withd rawn over Lhe firsl few weeks on the job, as everyone relurns lo
“business as usual. “64 Role confl ict and role overload may rise fo r newcomers over
lime, and employees wilh lhe largest increases in Lhese role problems experience Lhe
largesl decreases in com m it ment a nd satisfaction.65 It may be Lhat the in itial ad just-
ment period for newcomers presents increasing demands and difficulties, at leasl in
lhe short term .
How Employees Learn Culture
I
As Hyatt Hotels CEO Mark Hoplamazian talked to employees about how they learned the
company culture, he began to reth ink how culture was implemented at Hyatt.66 He felt the
company already hired great people. He talked to associates (as Hyatt’s employees are known)
to learn more about what happened when people joined the company, and how policies and
procedures played a role in the working and private lives of those in the Hyatt family. He
looked at lhe situation from different perspectives to see where things were not connecting.
One employee who had previously worked for a hotel in Mexico that Hyatt acquired was asked
what her first day at work for Hyatt was like. Hoplamazian found it was difficult for her to say
anything more than “it was great.” He wanted her to be more explicit, so he kept talking wilh
her. Finally, she burst into tears. “tn the first 48 hours of our management, she had learned
moslly about how she could get fired’ The on boarding/orientation program was all about
compliance and policies and rules and regulations-like it is at so many companies. And
the result was that it had terrified her,” said Hoplamazian . He was dismayed that employees
saw orientation, a foundational part of introducing employees to an organization’s culture,
as a negative experience. He went to work immediately to take orientation out of lhe hands
of HR and legal, and make it a more welcoming experience. “We went back and redesigned
the entire orientation process. The entirety of the first day of onboarding is now about what
we stand for, what it means to be part of the Hyatt family-viewed and presented from an
emotional perspective. Not from a left-brain, commercial perspective bu t from a right-brain
experiential perspective.”
I Why does culture have such a strong influence on people’s behaviour’
Cu lture is Lransm iued to employees in a number of fo rms,
lhe most potenl being stories, rituals, mate rial symbols,
and language. These forms enable bot h employees and
lhe outside world lo read lhe organization’s culture. From
Concepts to Skills on pages 379 – 381 offers add itional ideas
on how to read an organization’s culture.
v\lhat kind of
organizational
cultrure ~,·ould
work best for
you’!
Chapter 1 O Organizational Culture 3 67
Stories
When Toronto-based Bank of Montrea l (BMO) decided severa l years ago to become
a leader in customer service in the banking industry, it needed a way of commun icat-
ing th is message to the bank’s employees. The decision: “Every meeting starts with a
customer story.• No mauer what kind of meeting is being held, one staff member has
to tell a recent s tory about an interaction with a customer- ranging from feel-good
stories to horror stories of something that went wrong for the customer. By focusing
on customer stories, emp loyees know they need to pay attention to interactions so that
they can share the stories. Susan Brown, a sen ior v ice-president with BMO, explains
the importance of the story focus for the bank: “If you want to change culture, a great
way to do it is the customer story. It’s part of the evo lution of develop ing a customer-
cen tr ic culture.”67
Stories circu late through many organizations, anchoring the present in the past and
legitimating current practices. They typically include narratives about the organ ization’s
founders, ru le breaking, rags-Lo-riches successes, workforce reductions, relocations of
employees, reactions to past m istakes, and organ izational coping.68 Employees also
create their own narratives about how they came to either fit or not fit with the organiza-
tion during the process of socialization, including first days on the job, early interactions
with others, and first impressions of organizational life.69
Rituals
Rituals are repetitive sequences of activities that express and reinforce the key values of
the organ ization; wha t goals are most important; and/or wh ich people are important
vs. which are expendab le.70
One well-known corporate ritual is Wal mart’s company chant. Begun by the com-
pany’s founder, Sam Walton, as a way to motiva te and unite his workforce, “Gimme
a W, gimme an A, gimme an L, give me an M, A, R, T! • has become a company r it ual
that bonds Walman employees and reinforces Walton’s belief in the importance of
his emp loyees to the company’s success. Similar corporate chants are used by IBM,
Ericsson, Novell, Deutsche Bank, and PricewaterhouseCoopers.71
Material Symbols
The layout of corporate headquarters, the types of cars given to top executives, and
the presence or absence of corporate a ircraft are a few examples of ma ter ial symbols.
O thers include the s ize of offices, the e legance of furn ishings, executive perks, and
dress code.72 In addition, corporate logos, signs, brochures, and advertisements reveal
aspects of the organization’s culture.73 These ma terial symbo ls convey to employees,
customers, and clients who is important, the degree of egalitarian ism top management
desires, and the kinds of behaviour that are appropriate ( such as risk-taking, conserva-
tive, authoritarian, participat ive, individualistic, social) .
Some cultures are known for the perks in their environments, such as Google’s
bocce courts, SAS’s free hea lt h care clinic, and Microsoft’s organ ic spa. Al Bolton,
Ontario-based Husky Injection Molding Systems, a more egal itarian culture is favoured.
Employees and management share the parking lot, d in ing room, and even washrooms.
Language
Many organizations and subunits within them use language to help members iden-
tify with the culture, show their acceptance of it, and help preserve it. Unique terms
describe equ ipment, offices, key individuals, suppliers, customers, or products that
rela te to the business. New employees may al firs t be overwhelmed by acronyms and
jargon that, once assimila ted, act as a common denom inator to unite members of a
rituals Repetitive sequences of
actil/ities that express and reinforce
the key values of the organization;
what goals are most important: and
which people are important and which
are expendable.
material symbol s What conveys
to employees who is important, the
oogree of egal~arianism top man-
agement desires, and the kinds of
behaviour that are appropriate.
368 Part 4 Sharing the Org anizat ional Vision
Baidu, a Chinese web services firm, describes its culture as “simple” – m eaning direct, open, and
uncomplicated -and “reliable” – meaning trusting the competence of colleagues. Baidu’s casual work-
places reflect this trust w it h lounges, gyms, yoga studios, and dome-shaped nap rooms employees
may use at any time.
given cultu re or subculture. Baristas al Starbucks call drinks short, tall, grande, and venti
instead of small, medium, large, and extra-large, a nd they know th e d ifference between
a hal f-decaf double tall almond skin ny mocha a nd a n iced sh ort schizo ski nny hazel-
n ut cappuccino with w ings. Students and employees al Grant MacEwa n College are
informed by the ph ilosophy of the college’s namesake. Dr. Grant MacEwan, histo rian,
writer, po litician, and enviro n mentalist, was never a formal part of the ma nagement
o f the organ izatio n. However, many ph rases from h is writing and creed have fou nd
their way into forma l college p ubl ications a nd ca lendars, as well as informal commu-
nications, incl ud ing his most well known, “I have tried to leave things in the vi neyard
better than I found them.”74
Changing Organizational Culture
I One of the challenges Mark Hoplamazian, CEO of Hyatt, faced was how to communicate the company’s commitment to the environment, one of Hyatt’s global platforms, to the hotels.75 The
principle of thinking globally while acting locally was truly put to the test. Not all locations had
the same resources or needs, and cities and countries had their own environmental regulations
and polic ies. Hoplamazian wanted each hotel to contribute to Hyatt’s corporate social responsi-
bility (CSR) initiatives in a meaningful way, yet it would not be possible to implement one policy
across the company. To address this, he decided to stop giving associates mapped-out plans
for their decisions and instead “give them a compass and say ‘You figure out how you want to
bring yourself to bear.’ A compass instead of a map is really one of the key concepts that we
are moving towards.” In providing a compass instead of a map, Hoplamazian communicated
the need for c hange and new expectations for employees. Why has Hyatt been so successful
in c reating an organizational culture that enables change’
Changing an organization’s culture is difficult and requ ires tha t many aspects of the
organization change al the same time, especially the reward s truct ure. Cu lture is such
a challenge lo change because il often represents the establish ed mindset of employees
and managers.
Chapter 1 O Organizational Culture 369
John Ko tler, professor of leadersh ip al Haivard Business School, h as created a
detailed approach lo implementing change, which we discuss in Chapter 14.76 Efforts
d irected at changing organ izational culture do not usually yield immediate or dramatic
results. Cultural change is actually a lengthy process- measured in years, not months.
But we can ask the question, “Can culture be changed?” The answer is, “Yes!• The
evidence suggests that cu ltural change is most l ikely to occur when most or all of the
fo llowing conditions exist:
• A dramatic crisis. A shock that undermines the status quo calls into question
the relevance of the current cul lure. Examples of a crisis m ight be a surpris ing
financia l setback, the loss of a major customer, or a dramatic techno logical
breakthrough by a competitor.
• Turnover in leadership. New lop leadership, who can provide an alternative set
of key values, may be perceived as more capable of responding lo the cris is.
Top leadership definitely refers lo the organization’s ch ief executive, but also
m ight need to include all sen ior management positions.
• Young and small organization. The younger the organization, the less entrenched
its culture will be. It’s a lso eas ier for management to commun icate its new val-
ues when the organization is small.
• Weal/ culture. The more widely held a culture is, and the higher the agreement
among members on its values, the more difficult it will be to change. Weak
cu ltures are more open to change than strong ones.
Next we discuss two specific ki nds of cultural change: creating an eth ical organ iza-
tio nal culture and creating a positive organizational culture.
Creating an Ethica l Organizational Culture
Despite d ifferences across industries and cu ltures, ethical organizational cultures share
some common values and processes.77 Therefore, managers can create a more ethical
cu lture by adhering to the following principles:78
• Be a visible role model. Employees will look to the actions of lop management
as a benchmark for appropriate behaviour, b ut eveiyone can be a role model
to positively in fl uence the ethical atmosphere. Sen ior managers who take the
eth ical h igh road send a positive message.
• Communicate ethical expectati.ons. Whenever you seive in a leadership capacity,
m inimize eth ical amb igu ities by sharing a code of ethics that s tates the organi-
za tion’s primaiy val ues and the judgment rules that employees must follow.
• Provide ethics training. Set up seminars, workshops, and tra ining programs lo
reinforce the organization’s s tandards of conduct, to clarify what practices are
permissib le, and to address possible eth ical d ilemmas.
• Visibly reward ethical acts and punish unethical ones. Eval uate subordinates on
how their decisions measured against the organization’s code of eth ics. Review
the means taken to achieve goals, as well as the ends themselves. Visibly
reward those who act ethically and co nsp icuously pun ish those who do not.
• Provide protective mechanisms. Provide formal mechanisms so eveiyone can
d iscuss eth ical d ilemmas and report uneth ical behaviour without fear of repri-
mand. These might include identifying eth ics counsellors, ombudspersons, or
eth ics officers for liaison ro les.
The work of setti ng a positive eth ical cl imate has to start al the top of the organiza-
tion.79 One study demonstrated that when top management emphasizes strong eth ical
C, Demonstrate how an
ethical organizational
culture can be created.
370 Part 4 Sharing the Organizational Vision
0 Describe a positive
organizational culture.
positive organizational culture
A culture that emphasizes building on
employee strengths, rewards m0
ii
a,
.!!-
~
.2
~
.!!I ..
“‘ t
leader Behaviours
S2
(Low) _.•—+——-+, Task Behaviour +——+—.,_ (High)
Follower Readiness
R4
Able and
w illing
High
R3
Able and
unwilling/
apprehensive
R2
I
Unable and
wllllng
Moderate
R1
Unable and
unwllllng/
lnsecuN
Low
EXHIBIT 11 -3 Path-Goal Theory
Leader Behaviour
• Directive
• Supportive
• Partici pative
• Achievement-oriented
• •
Environmental
• Task structure
• Fo rmal authority system
• Work group
• Performance
~~~~~~~~~~~~~1
• Satisfaction
Subordinate
• locus of control
• Experience
• Perceived ability
tasks are ambiguous. ll would not be very helpful when used w ith individuals
who are a lready high ly motivated, have the skills and abili ties to do the task,
and understand the requirements of the task.
• The supportive leader is friendly and shows concern for the needs of followers.
Th is is essentially synonymous with the Ohio State dimension of consid-
eration. Th is behaviour is often recommended when individuals are under
stress, or otherwise show that they need to be supported.
• The participative leader consu lts with followers and uses their suggestions
before making a decision. This behaviour is most appropriate \vhen individu-
als need to buy in to decisions.
• The achievement-oriented leader sets challenging goals and expects followers to
perform at their highest level. This behaviour works well with individuals who
like challenges and are h igh ly motivated. ll would be less effective with less
capable ind ividuals, or those who are highly stressed from overwork.
As Exh ib it 11 -3 illustrates, path-goal theory proposes two types of contingency vari-
ables that affect the leadersh ip behaviour-outcome relationsh ip: environmental variables
that are outside the control of the employee and variables that are part of the personal
characteristics of the employee. The theory proposes that employee performance and
satisfaction are likely to be positively in fl uenced when the leader compensates for what
is lacking in either the employee or the work setting. However, the leader who spends
time explaining tasks when those tasks are already clear or when the employee has the
ab ility and experience to handle them w ithout interference is likely to be ineffective
because the employee will see such d irective behaviour as redundant or even insulting.
[[~ ]] RESEARCH FINDINGS: Path-G oal Theory
~ The match between leadership style and si tuation can be individualistic and
~ mercurial. Some tasks might be both stressful and highly structured, and
employees may have high ab ility or experience in some tasks and not others. Research
has found that goal-focused leadersh ip can lead to higher levels of emotional exhaus-
tion for subordinates who are low in conscientiousness and emotional stability.22 Th is
Chapter 11 Leadership 3 91
392 Part 4 Sharing the Organizational Vision
O Contrast inspirational
and responsible
leadership.
charismatic leadership theory
A leadership theory Iha! states
Iha! followers make attn1>utions of
heroic or extraordinary leadership
abilities when they observe certain
behaviours.
suggests th at leaders who set goals enable conscient io us followers to achieve h igh er
performance but may cause s tress for employees wh o are low in conscient iousness.
Like SLT, path-goal theory h as intuitive appea l, especially from a goal attainment
perspective. Also like SLT, the theory can be only caut iously adop ted for application,
but il is a useful framework in exami ning the importan t role of leadership.23
Case Incident- Leadership by Algorithm o n pages 410- 41 1 explores ways lo learn how
lo adapt your leadersh ip sty le lo beuer fit the situation.
Inspirational Leadership
I Kelly Lovell inspires young people by relating stories from her early teenage years.
24 She says
that she struggled to find her voice, was bullied, and had poor self-esteem. She felt she was the
butt of all jokes. Finally, she got involved in volunteer work.
Lovell attributes her success to her early experiences with volunteering and she encourages
young people to follow her lead. “Volunteering equipped me with the experiences and skills I
was missing to attract the supporters I needed. It was through volunteerism [lhal] I was able
to understand my abilities because there is no pressure.” Lovell’s volunteer experience led her
to develop an app to help other young people track their volunteer opportunities, and also the
leadership skills that they learn from these activities.
Lovell won the Queen’s Young Leaders Award for 2016, an award given to 60 youth from Com-
monwealth countries who are “taking the lead to transform the lives of others.” Lovell was excited
that this allowed her to meet the Queen, and she hopes the award will inspire the young people
she reaches out to. “To make it to Buckingham Palace strengthens my message of what is possible
I with passion and drive, and how far a person can go if they take their own future into their hands.” What does it take to be an inspirational leader’
The leadersh ip theories we have d iscussed so far ignore the importance of the leader
as a commun icator who inspires others to act beyond their immediate self-in terests. In
this section, we present two contemporary leadersh ip theories with a commo n theme.
They view leaders as individuals who insp ire followers through their words, ideas, and
behavio urs. These theories are charismatic leadership and transformational leadersh ip.
Charismatic Leadership
The follow ing indiv iduals are often cited as being charismatic leaders: Frank Stronach
of Aurora, O ntario-based Magna In ternational; Mogens Smed, CEO of Calgary-based
DIRTT (Doing It Right This Time) Envi ronmental Solutions; Pierre Trudeau, the late
prime mi nister; Michaelle Jean, former Governor General; and Craig Kielburger, founder
of WE Charily (formerly Free the Chi ldren). So what do they have in common?
What Is Charismatic Leadership?
Max Weber, a sociologist, defined charisma (from the Greek word for “gift• ) as “acer-
tain q uality of an indiv idual personality, by virtue of wh ich he or she is set apart from
ord inary people and treated as endowed with supernatura l, superhuman, or al least
specifi ca lly exceptional powers or qual ities. Th ese are not accessible lo the ordinary
person and are regarded as of d ivine origin or as exemplary, and on the basis of them
the individual concerned is treated as a leade r. •2s
The first researcher to consider charismatic leadership in terms of OB wa~ Robert House.
According to House’s charismatic leaders hip theo ry, followers make attributions of
heroic or extraordinary leadersh ip abilities when they observe certain behaviours, and tend
to give these leaders power.26 A number of studies h ave attempted to identify the charac-
teristics of the charismatic leader and have documented four- they have a vision, they are
will ing to take personal risk~ to achieve that vision, they are sensitive lo followers’ needs,
and they exhibit extraord inary behaviours (see Exhibit 11-4 ).2 7 Recent research in Greece
suggested that charismatic leadersh ip increases follower organizational identificatio n
EXHIBIT 11-4 Key Characteristics of Charismatic Leaders
1. Vision and articulation. Has a vision – expressed as an idealized goal – that pro-
poses a future better than the status quo; and is able to clarify the importance of
the vision in terms that are understandable to others.
2. Personal risk. Willing to take on high personal risk, incur high costs, and engage in
self-sacrifice to achieve the vision.
3 . Sensitivity to followers’ needs. Perceptive of others’ abilities and responsive to their
needs and feelings.
4. Unconventional behaviour. Engages in behaviours that are perceived as novel and
counter to norms.
Sourr:e: Based o n J. A. Conger and R. N. Kanungo, Charismatic Leadership In Organizations (Thousand
Oaks, CA: Sage, 1998), p . 94.
( commiunent) by building a shared group identity among follo\vers.28 Other research
indicates that charismatic leadersh ip may predict follower job satisfaction.29
Are the heroic qualities ascribed to charismatic leaders part of their DNA? Point/
Counterpoint on page 408 considers the question.
How Cha rismatic Leaders Influence Fo llowers
How do charismatic leaders actua lly influence fo llowers? They articulate an appeal-
ing vis ion-a long-term strategy for how lo attain a goa l by linking the present with
a beuer fu ture for the organization. Desirable visions fi t the limes and circumstances
and reflect the uniqueness of the organ ization. Thus, followers are inspired nol on ly by
how passionately the leader communicates-there musl be an underlying vision that
appeals to followers as well.
A vision needs an accompanying vi s ion s tatement, a forma l articu lation of an
organ ization’s vision or mission. Charismatic leaders may use vision statements to
imprint on followers an overarch ing goal and purpose. These leaders also set a tone of
cooperation and mutual support. They bu ild followers’ self-esteem and confidence with
high performance expectations and the bel ief that followers can attain them. Through
words and actions, the leader conveys a new set of values and sets an example for fol-
lowers to imitate.
Finally, the charismatic leader engages in emotion-inducing and often unconven-
tional behaviour to demonstrate courage and convictions about the vision.
[[~ ]] RESEARCH FI NDINGS: Charismatic Leadershi p
~ Charismatic leaders are able lo reduce stress for their employees, perhaps
~ because they help make work seem more meaningful and interesting.30
Some personalities are especially suscep tible to charismatic leadership.31 For instance,
an individual who lacks self-esteem and questions his or her self-worth is more likely to
absorb a leader’s d irection rather than establ ish an individual way of lead ing or think-
ing. For these people, the si tuation may matter much less than the charismatic qualities
of the leader. A recen t study found tha t it is possible for a person to learn how lo com-
municate charismatically, which would then cause that person to be perceived more
as a leader. People who are perceived to be charismatic show empathy, enthusiasm,
and self-confidence; have good speaking and listen ing ski lls; and make eye contact.3 2
Research indicates that charismatic leadership works as followers “catch• the emo-
tions their leader is conveying.33 One study found employees had a stronger sense of
persona l belonging at \vork when they had charismatic leaders, and increased their
will ingness to engage in helping and comp liance-oriented behaviours.34
Chapter 11 Leadership 393
vision A loog-term slrategy 10<
attaining a goal or goals.
vision statement A formal articula-
tion of an 0
plains,
.
amed Chris .
Many oro,
n, __ .
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certainly m
usr
F A C E O F F
Organizatio ns that encourage spir-
ituality as part of their culture are
bo und to have more positive bot-
tom lines, because everyone in the
organization will act mo re ethically.
Criticisms of
Spirituality
Critics of organ izations that embrace
spiritual values have focused on three
issues. First is the question of scientific
founda tion. What, really, is workplace
spi rituality? Is it just a new manage-
ment buzzword? Second, are sp iritual
o rgan izations legitimate? Specifically,
do o rgan izations have the right to
claim spiritual values? Th ird is the
question of econom ics: Are spiritual-
ity and profits compatible?
First, as you might imagine, com-
paratively little research exisL~ on work-
p lace spirituality. Sp iritual ity has been
defi ned so b roadly in some sources
tha t p ractices from job rota tion to
corpora te retreats at med itation cen-
tres have been iden tifi ed as s p iritual.
Questions need to be answered before
the concept ga ins fu ll cred ib il ity.
Second, an emphasis on spiritual-
ity can dearly make some employees
uneasy. Critics have argued that secular
institutions, especially business fi rms,
have no bus iness imposing sp iri tual
values on emp loyees. T h is cri ticism
is undoubtedly valid wh en spi ritu al-
ity is defined as b ringing religion and
God into the wo rkplace.33 However,
An emphasis o n s pirituality a t work
d is tracts ind ivid uals from focusing
o n the demands of their jo bs, and
makes some people uncomfort-
able. It sho uld not be encouraged .
it seems less stinging when the goal
is limi ted to helping employees find
mean ing and purpose in their wo rk
I ives.
Fina lly, whether sp iritua lity an d
p rofi ts are compatible objectives is
a re levant concern fo r managers and
investo rs in bus iness. The evid ence,
although lim ited, indicates that they
are. In one stud y, o rgan izations that
provid ed thei r employees w ith oppor-
tun ities fo r spi ritual development out-
performed those that d id not.34 Other
s tud ies repo rted th at s p iritua lity in
organ izations was positively re lated to
creativity, employee satisfaction, team
performance, and organizational com-
mitment 35
The cyn ic will say that all of th is car-
ing stuff is in fact merely good public
relations. Even so, the results at WestJet
suggest that a ca ring o rgan ization is
good for th e bottom line. WestJet is
strongly comm itted to p rovid ing the
lowes t a irfa res, on-t ime service, and
a pleasant experience fo r customers.
WestJet employees have one of the low-
est turnover rates in the a irline indus-
try, the com pa ny consistently has the
lowest labour costs per m iles fl own of
any ma jor a irline, and it h as proven
itself to b e the most consisten tly profi t-
able a irlin e in Canada.36
RESEARCH EXERCISES
1. Look for data on companies that
foster spirituality in the workplace
in Canada and the United States.
Can you draw any inferences
about whether incorporating spiri-
tuality in the workplace is becom-
ing a trend?
2. Identify three Canadian organiza-
tions o r CEOs that have encour-
aged more openness toward
spirituality in their o rganizations.
What, if any, commonalities exist
in these o rganizations?
YOUR PERSPECTIVE
1. Have you ever tried meditation? If
yes, d id it help you achieve more
c larity in your thinking? If not, What
a re your views on this p ractice?
2. What does spirituality mean to
you?
WANT TO KNOW MORE?
Three top-selling books by Canadian
authors, based on international sales •
are on sp irituality: A New Earth:
Awakening to Your Life ‘s Purpose, by
Vancouver’s Eckhart Tolle; The Power
of Now, by Eckhart Tolle; and The
Shack, by William Paul Young.
455
456
Organizational Structure
PA RT 5
REORGAN IZ I NG THE WORK PL ACE
O Identify seven elements of an organization ‘s structure.
f) Describe the characteristics of a bureaucracy.
f) Describe the characteristics of a matrix organization.
Precision
Nutrition is a
fit ness and nutrition
coaching company w it h
a fl attened organizat ional
structure. How has t his
organizational structure
contributed to the
company’s
success?
C, Describe the characteristics of virtual, team, and circular structures.
0 Describe the effects of downsizing on organizational structures and employees.
O Contrast the reasons for mechanistic and organic structural models.
f) Analyze the behaviou ral implications of different organizational designs.
n 2015, Toronto-based Precision
Nutrition, a fitness and nutrition coach-
ing company, was named one of Can-
ada’s most innovative fitness
companies. 1 The company was started
in 2005 by Phil Caravaggio (in the cen-
tre of the photo). His interest was in coaching
and developing strategies for the company.
When he grew from 8 to 50 employees,
he found almost all of his time was
spent managing employees, rather
than getting his work done. He
wanted a new organizational
structure to make things
more efficient. “I want to
Counesy of Precision rwtrition
be a leader,” he says. “I don’t want to be a manager.”
Caravaggio put in place a management system called holacracy, developed by Brian Robertson. Holacracy
promotes a flatter organizational structure, empowering individuals to make more decisions for the work
that they do. As described on the HolacracyOne website, “In Holacracy, people have multiple roles, often
on different teams, and those role descriptions are constantly updated by the team actually doing the
work. This allows people a lot more freedom to express their creative talents, and the company can
take advantage of those skills in a way it couldn’t before. Since roles are not directly tied to the
people filling them, people can hand-off and pick up new roles fairly easily.”
Organizations are looking for new ways to structure. Not all are going as far as hol-
acracy, though Zappos, with 4000 employees, is one of the largest using the system.
Other organizations are flattening themselves to have fewer layers of bureaucracy.
Choosing an organizational structure requires far more than simply deciding who
is the boss and how many employees are needed. The organization’s structure will
determine what relationships form. the formality of those relationships, and many work
outcomes . The structure may also change as organizations grow and shrink, as management
trends dictate, and as research uncovers better ways of maximizing productivity.
Structural decisions are arguably the most fundamental ones a leader has to make toward sustain-
ing organizational growth.2 In this chapter, we will explore how structure affects employee behaviour and
the organization as a whole.
\ I I
:’o’:
, ‘
, ‘
• What happens when a person performs the same task over and over again? ‘l’IIE BIG IDEA
• What happens when a person reports to two bosses?
• What does technology mean?
Organizalional
slruclure
delermines ,vhaL
gets done in an
organizaLion, and
,vho does il.
457
4 58 Part 5 Reorganizing the Workplace
O Identify the seven
elements of an organi·
zation’s structure.
organizational structure How job
tasks are formally divided, grouped,
and cOOfdinated.
work specializati on The degree
to which tasks in the organization are
subdivided into separate jobs.
What Is Organizational Structure?
An o r ganizational structu re defines how job tasks are formally divided, grouped, and
coordinated. Managers should address seven key elements when they design their orga-
n ization’s structure: work specialization, departmental ization, cha in of command, span
of control, centralization and decentral ization, formal ization, and boundary spanning.3
Exhib it 13-1 presents each elemen t as the answer to an important structural question,
and the follow ing sections describe them.
Work Specialization
Wor k s p ecialization, or division of labour, describes the degree to wh ich tasks in the
organ ization are subd ivided into separate jobs. The essence of work specialization is
that, rather than an entire job being completed by one ind ividual, it’s broken down
into a number of s teps, with each step being completed by
a separate individual. Specialization is a means of making
the most efficient use of employees’ skills and even success-
fully improving them through repetition. Less time is spent
changing tasks, pu tti ng away tools and equ ipment from a
prior s tep, and getting ready for another.
Specialization can be efficient. It’s easier and less costly
to find and tra in employees to do specific and repetitive
tasks. This is especially true of h igh ly sophisticated and
comp lex operations. For example, could Montreal -based
v\lhat hap pens
when a person
per for1ns the
same task over
and over again·?
Bombard ier produce even one Canadian regional jet a year if one person had to bu ild
the enti re plane a lone? Not likely! Finally, work specialization increases efficiency and
productivity by encouraging the creation of special inventions and mach inery.
However, specialization can lead to boredom, fa tigue, stress, low productivity, poor
qual ity, increased absenteeism, and high turnover, so il is not always the best way to
organize emp loyees. Giving employees a variety of activities to do, allowing them to do
a whole and complete job, and putting them into teams with interchangeab le ski lls can
resu lt in significantly h igher output and increased employee satisfaction.
Most managers today recognize that specialization provides econom ies in certa in
types of jobs but problems when it’s carried too far. High work specialization helps
McDonald’s make and sell hamburgers and fries efficiently, and a ids medical special-
ists working in hosp itals. Wherever job roles can be broken down into specific tasks or
projects, specia lization is possible. Specialization may still confer advantages outside
manufacturing, particularly where job sharing and part-time work are prevalent.4
EXHIBIT 13-1 Seven Key Questions That Managers Need to Answer in
Designing the Proper Organizational Structure
The Key Quest ion
1. To what degree are tasks subdivided into
separate jobs?
2. On what basis will jobs be grouped together?
3. To whom do individuals and groups report?
4. How many individuals can a manager efficiently
and effectively direct?
The Answer Is Provided By
Work specialization
Departmentalization
Chain of command
Span of control
5. Where does decision-making authority lie? Centralization and decentralization
6. To what degree will there be rules and regulations Formalization
to direct employees and managers?
7. Do individuals from different areas need to Boundary spanning
regularly interact?
I
Chap t er 13 Organizational Structure 459
Work is specialized at the Ru ssian factories that manufacture the wooden nesting dolls called malfyosh-
kas. At this factOf)’ outside Mosoow, individuals specialize in doing part of the doll production, from the
craftsmen who carve the dolls to the painters who decorate them. Work specialization brings efficiency to
doll production, as some 50 employees can make 100 matryoshkas eve
” …,
2
“‘ 3 c
.2
~
“‘
4
…
·2
5 “‘ “‘ ~ 0 6
7
(Lowest)
Members at Each Level
Assuming span of 4
1
4
16
64
256
1024
4096
Operat ives = 4096
Managers (Levels 1-6) = 1365
Assuming span of 8
~
8
64
512
4096
Operatives = 4096
Managers (Levels 1-4) = 585
Source: Based on J. H. Gittell, “SuperviSOIY Span, Relational Coordination, and Flight Departure
Performance: A Reassessment of Postbureaucracy TheOIY: Organization Science, July-August
2001, 468-483.
Chapt er 13 Organizational Structure 463
The lrend in recen l years has been loward wider spans of contro l. 11 Wider spans of
conlrol are consislenl with recenl efforts by companies lo reduce costs, cut overhead,
speed up decision making, increase flexibility, gel closer lo cuslomers, and empower
employees. However, lo ensure that performance does not suffer because of these wider
spans, organ izations have been investing heavily in employee lrain ing. Managers rec-
ognize tha t they can handle a wider span when employees know their jobs inside and
out or can turn lo their co-workers when they have queslions.
Centralization and Decentralizati on
Centralization refers lo the degree to wh ich decision making is concenlra ted at a single
poinl in the organizalion. In centralized organizations, lop managers make all the deci-
s ions, and lower-level managers merely carry out their d irectives. In organizalions al the
other extreme, decentra lized decis ion making is pushed down lo the managers closest
to the action or to work groups. The co ncept of centralization includes only formal
aulhority- that is, the rights inherent lo a posilion.
An organizalion characterized by centralization is inherently d ifferent slructurally
from one that is decenlral ized. In an organization characterized by decentralization,
employees can act more quickly to solve problems, more people provide input into
decisions, and employees are less likely to feel alienaled from those who make deci-
s ions that affect their work lives. Decentral ized departments make it easier lo address
customer concerns as well. The effects of central ization and decenlralization can be
pred icted: Centralized organ izations are beuer for avoiding commission errors (bad
choices), wh ile decentralized organizalions are beuer for avo id ing omission errors (lost
opportunilies ). 12
Management efforts to make organizations more flexible and responsive have pro-
duced a recent trend toward decentral ized decision making by lower-level managers,
who are closer to lhe action and typically have more deta iled knowledge about prob-
lems lhan top managers. Big retailers such as Hudson’s Bay have given store managers
With more than 7000 neighbourhood and airport locations throughout North America and Europe, Enter-
prise Rent-A-Car empowers employees at the local level to make decisions that affect their work. Decen-
tralization gives Enterprise a competitive advantage by enabling employees to provide personalized service
that resutts in high customer satisfaction.
centralization The degree lo which
decision making is concentrated at a
single point in lhe organization.
decentralization The degree to
which decision making is
Q.
Q.
;:;;
0
:, .,
0 .,
:::
“‘
needs to restore community trust. At the same time, she needs
to grow zoo attendance levels, which have fallen in the past six
months, and develop a strategic plan for the zoo.
Breslin also faces a very divided and demoralized staff. She
has reviewed what was written in the press and familiarized
herself w ith the C itizens’ Task Force review. She knows she
needs to bring some peace and stability to employee relations.
Her most difficult task will be to unite the staff. She needs to
build staff morale and gain their trust. She wonders how she will
accomplish these goals over the next year. The outline of what
she intends to do over the next six months to get things back
on track is to be presented to the board in two weeks.
Additional Cases 54 7
Discussion Questions
1. What can Emma Breslin do to restore trust and morale
among the employees?
2. Should Breslin promote Wynona Singh to head (and
attending) veterinarian or hire someone from outside?
3. What changes to the organizational structure could
Breslin make to help foster a more positive work
environment?
4. How might trust be restored among community mem·
bers so that a positive outcome for the tax levy m ight
occur?
ENDNOTES
Chapter 1
1 Vignette based on J. Castaldo, “The Last Days of Target, • Canadian
Busi11ess, January 2016, http:lfwww.canad ianbusiness.co m/
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2 “S u rvey: Few CFOs Plan to Invest in I n terpersonal Skil ls
Developmen t for The ir Teams,” Accountemps news re lease,
June 19 , 2013, http://accountemps. rhi . mediaroom.com/ 2013-
06- J 9 -Survey-Few-CFOs-Pl a n -to-1 nvest-in-1 nterpersonal -Ski I Js.
Development-fo r-Their-Teams.
3 These co m panies were nam ed in the JOO Top Em p loyers fo r
201 7. See http://www.canadastop100.com/ nationalf; http://www.
ca nadastop 100.co m/ atl a nt ic/; a nd h ttp://w,,~v.canadastop JOO.
co m/ skf.
4 I. S. Fulmer, B. Gerhart, and K. S. Sco tt, “Are the 100 Best Better?
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‘Great Place to Work’ and Firm Performance,• Personnel Psychology
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5 S. E. Humphrey, J. D. N ahrgang, and F. P. Margeson, “Integrating
Motivatio nal, Social, and Contextual Work Design Features: A
Meta-a nalytic Summary a nd Theoretical Exten., ion of the \<\fo rk
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pp. 1332- 1356.
6 E. R. Burris, "The Risks and Rewards of Speaking Up: Managerial
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7 T. L. Miller, C. L. Wesley II, and D. E. 'A'illiams, "Edu cati ng the
Minds of Caring Heart.<: Comparing the Views of Practitio ne rs
a nd Educators on the Importance of Social Entrepreneursh ip
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8 H. Aguin i.< and A. Glavas, "\.Vhat 'A1e Don't Know about Corporate
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9 Vignette ba.
a n d S. C h erya n, “V,.lh en Compliments Fail to Flatter: America n
Individualism and Respo nses to Positive Stereotypes,” Journal
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I. Gainsb u rg, and N. Ambady, “The Effects o f Stereotypes a nd
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Exercise Psychology 34 (2012), pp. 3 – 15.
20 K. A. Martin, A. R. Sinden, a nd J. C. Fleming, “Inactivity May Be
Hazardous to Your Image: The EffeCL< of Exercise Participatio n o n
Im p ression Formatio n," Joumal of Sport & Exercise Psyclrolog)' 22,
no. 4 (December 2000), pp. 283- 291.
21 F. Yua n a n d R. \.V. \.Vood m a n, "In novative Beh avior in th e
\.Vo rkplace: T h e Ro le o f Perfo rma nce and Image O u tco m e
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22 J. K. Ha rter, F. L. Schm idt, J. W. Asp lund, E. A. Killham, a n d S.
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23 Y. H. Ki m , C. Y. C hiu, a nd Z. Zou, "Know Thyself: Misperceptions
of Actual Performa nce U nderm ine Achievem ent Motivation,
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24 H. G. Henem an Ill and T. A. Judge, Staffi11g Organ izat ions
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25 J. Willis and A. Todorov, "First Imp ressions: Making Up Your Mind
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26 N. Eisenk raft, "Accurate by \.Vay o f Aggregation: Sh o uld You Trust
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2 7 See, fo r exa mple, K. F. E. Wong and J. Y. Y. Kwo ng, ‘ Effects of
Rater Coa ls o n Rating Patterns: Evidence fro m a n Experimental
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28 D. B. McNatt a nd T. A. Judge, “Bo undary Co nd it io ns of t h e
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Th ieriy, ‘ Pygmalion and Employee Learning: The Ro le of Leader
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29 See, fo r exa mple, K. F. E. Wong and J. Y. Y. Kwo ng, ‘ Effects of
Rater Coa ls o n Rating Patterns: Evidence fro m a n Experimental
Field Stu dy,• Jo urnal of Applied Psrclrology 92, n o . 2 (2007),
pp. 5 77- 585; a nd S. E. DeVoe and S. S. Iyen gar, “Managers’
T h eo ries of Subo rdina tes: A C ross-Cu ltu ral Exa mi na t ion
of Ma n ager Pe rcept ions of Mo tiva tion a n d App ra isa l of
Perform ance, ” Organizational Behavior a,id Human Decisio,i
Processes, January 2004, p p. 47- 61.
30 Vignette based on R. Faber, “Michele Ro ma n ow Y..•a n ts to Be
a Helpfu l Dragon,” Maclea11’s, Januaiy 6, 2016, h ttp://www.
macleans.ca/ educatio n/ m ichele-romanow-wanL<·tO·be·a·h elpful.
dragon/ .
31 D. Leising, J. Sch arloth, 0. Lohse, and D. \.Vood, "V,.lh at Type.<
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3 2 L Weber, 'To Get a Job, New Hires Are Put to the Test,• \,\fall Street
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33 L. Weber and E. Dwoskin , "As Persona lity Tests Mu lt iply,
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34 D. Belkin, "Colleges Pu t the Emphasis o n Persona lity,· Wall Street
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3 5 M. J. W. Mcl.amona, M. C. Roth,teinb, R. D. Coffi nc, M. J. Riederd,
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Me.
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End notes 567
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10 3 B. L. Rich, J. A. LePine, and E. R. Crawford, “Job Engagem ent:
An tecedent.< and Effects on Job r e rfo rma n ce, • Academy of
Management Journal 53, no. 3 (2010), pp. GI 7- 635.
104 M. Tims, A. B. Bakker, an d D. Xanthopoulo u, "Do Tran.
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93 J. Shin, T. Kim, J. Lee, and L. Bian, "Cognitive Team Diversity a nd
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9 4 W. E. \.Vatson, K. Ku m ar, a nd L. K. Mich aelsen, "C u ltural
Divers ity's Impact o n Interaction Process a nd Performa nce:
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reproduced by perm issio n of Pearson Education, Inc., Upp er
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1 Based on 8. Maclellan, ‘ Turn ing 20, a n d Still a Young a n d
In depen dent Agency,” Environ ics, August 14, 2014, h ttp ://
envi ronicspr.com/ u s/ 20 I 4 / 08/ turn ing-20-sti I I -young-i n depen-
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2 See, for examp le, K. T. Dirks a nd D. L. Ferrin, 'Trust in Leadership:
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Joumal of Applied Psychology, Augu st 2002, pp. 611 - 628; 8. McEvily,
3
4
5
6
7
V. Perro ne, A. Zaheer, guest editors, The special issue o n trust in
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F. K. Sonnen berg, 'Trust Me, Trust Me Not,• lndustry•,Veek, August
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18, 2012, h ttp://W\,~v.hrvoice.org/wp-content/ uploads/ 2013/ 05/
BABW-1 n fogra phic .
h ttp :// e n v ir o n i cs p r. co m / thi n k i ng/ the - env iro n i cs ·
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J. Pollack, ' Do Your Em ployees Trust You? Beh aviou r Su rvey
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8 See for instance, K. T. Dirks and D. L. Ferrin, 'Trust in Leadersh ip:
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11 J. K. Rempel, J. G. Ho lmes, and M. P. Za nna, ' Trust in C lose
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12 C. M. Cra n ovetter, "Eco nomic Act io n and Social S tructu re:
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31 See, for example, B. S. r awar, “Workplace Spirituality Facilitation:
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32 M. Oppenheimer, ‘The Rise of the Corporate C haplain,· Bloomberg
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33 M. Lips· Miersma, K. L. Dean, a n d C. J. Fom aciari, ‘Theorizi ng
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of Ma11ageme1tt Inquiry 18, no. 4 (2009), pp. 288- 300.
3 4 J. · C. Ca r c i a . Zamo r, ” ‘A’ o rk place Spi r i tua l ity a n d
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35 A. Rego a nd M. ri n a e Cu n ha, ‘ \’lorkp lace Spir ituality a n d
O rgan izational Com mitment : An Em p irica l Study,” Jounial
of Orga11iza t io11al Change Management 21, n o. I (2008 ) ,
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Ju rkiew icz, “Wo rkp lace Val u es a n d Outcom es: Exp lo ring
Pe rso na l, O rgan iza tio nal. and I n t e ract ive Wo rkp l ace
Sp ir it u a lity,” Journal of Business Ethics 81, n o. 2 (2008),
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“C reat ing Satisfi ed Emp loyee.< through Workpl ace Spiritual ity:
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Jounial of Business Ethics 122 (2014 ), pp. 79 - 88.
36 Cited in A. M. Saks, ' Workplace Spiri tua lity a n d Em p loyee
Engagement,• Joumal of Managemen t, Spiri111ality & Religion 8, no. 4
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604 En dnotes
Chapter 13
1 Vig n ette based on h ttps://www.h o lacracy.o rg/ how-it-works/;
and K. \<\lilkinson, "Holacracy Empower.; Employees by Getting Rid
of Bosses, · Canadian Business, March 31. 2014, h ttp://www.
canadianbusine.ss.com/ busi ness-strategy / hol acracy / .
2 L. Ga ricano a n d Y. W u, " Knowledge, Com municat ion, and
O rganizational Capabilities,,. Organization Scie,ice, September-
October 2012, pp. 1382- 1397 .
3 See, fo r instance, R. L. Daft, Organizntion Theo,y and Design, 10th
ed. (Cinci nna ti, OH: South -Western Pu blishing, 2010) .
4 J. G. Miller, "The Real \<\/o m en's Issue: Ti me,· Wall Street Journal,
March 9- 10, 2013, p. C3.
5 T. \<\/. Ma lone, R. J. Laubach e r, and T. Johns, "Th e Age of
Hyperspecializatio n, • Harvard Business Review, July- August 201 1,
pp. 5 6 - 65 .
6 J. Schra mm, "A Cloud of Workers." HR Magazine, Ma rch 2013 ,
p. 80.
7 C. Woodyard, "Toyota Brass Shakeup Aims to Give Regions More
Cont rol," USA Today, March 6, 2013, h ttp://"~vw.usatoday.com/
story/ money/ cara/ 2013/ 03/ 06/ toyota-shakeup/ 1966489/ .
8 C. Hymowi tz, "Manage.rs Suddenly H ave to Answer to a Crowd of
Bo.s.ses, • \,\la/I Street Journal, August 12, 2003, p. BI .
9 "'How H ie rarchy Can Hu rt Strategy Execution/ Haroard Business
Review, July- August 2010, pp. 7 4-75 .
10 See, fo r exam ple, J. H. G ittell, "Supervisory Span, Relationa l
Coordination, and Fligh t Departure Performance: A Reassessm ent
of Postbu reaucracy Theory,· Organizntion Science, July - August
2001 , pp. 468- 483.
11 J. Ch i ld a n d R. G . McG ra t h, "O rga n izatio n s U n fettered:
Orga nizatio nal Fonn i n an l nform ation· l ntensive Economy,"
Academy of Management Journal, December 2001, pp. 1135- 1148.
U F. A. Csascar, "Orga nizational Structu re as a Determ ina nt of
Performance: Evidence fro m Mutual Funds," Strategic Management
Journal, June 2013, pp. 611 - 632.
13 B. Brown a nd S. D. Antho ny, "How P&G Tripled Its Innovatio n
Success Rate." Harvard Business Review, June 2011, pp. 64 - 72.
14 A. Leiponen a n d C. E. Helfat, "Location, Decentralization, and
Knowledge Sources fo r In nova tion," Organization Science 22,
n o. 3 (2011 ), pp. 641- 6 58 .
15 K. Parks, • HSBC Unit Charged in Argentine Tax Case,• \,\la/I Street
Joumal, March 19, 2013, p. C2.
16 G. Morgan, Images of Organizntion (Newbury Park, CA: Sage,
1986), p. 21.
17 P. He m pel, Z.-X. Zhang, and Y. Han, "Tea m Em powerment and
the Organizational Context: Decentral ization and the Contra~ting
Effects of Formalization," Journal of Management, March 2012,
pp. 475-501.
18 J. E. Perry-Sm i th a n d C. E. Sh a lley, "A Social Co m position
View of Team Crea t ivity: Th e Role of Mem ber Natio n al ity-
Hete rogeneous 1ies O utside of the Team," Orgm1izntiot1 Science
2 5 (2014), pp. 1434 - 145 2; J. Han, J. Han, and D. J. Brass,
• Human Capital Diversity in the Creation of Social Capita l fo r
Tea m Creativity,• Journal of Organizntional Behavior 3 5 (2014),
pp. 54-71; and N. Sivasubraman iam, S. J. Liebowitz, and C. L.
Lackm an, "Dete nninants of New Product Devel opm ent Team
Performance: A Meta-analytic Review:," Joun1al of Product Innovation
Management 29 (2012), pp. 803- 820.
19 N. J. Foss, K. Lau rsen, and T. Pedersen, "Linking C usto me r
In te raction a nd Innovation : T he Media ti ng Ro le of New
O rganiza t io n al Practices,· Organization Science 22 (2011 ) ,
pp. 980- 999; N. J. Foss, J. Ly ngsie, and S. A. Zah ra, "The Role
of Exte rn al Kn owledge Source.< and Orga nizatio n al Design in
the Process of Opportunity Explo itation," Strategic Manageme,1t
Journal 34 (2013), pp. 145 3 - 1471 ; A. Salte r, P. C risuolo, and
A. L J. Ter Wal, "Coping w ith Open Innovation: Respond ing
to th e Challenges of Exte rnal Engagement in R&D." California
Management Review 56 ('A'inter 2014), pp. 7 7-94.
2 0 T. A. de Vries, F. Wa lter, G. S. Va n der Vegt, and P. J. M. D.
£.,;sens, '''An tecedents of Ind iv iduals' lnterteam Coord ina tion:
Broad Functional Experiences as a Mixed Blessing, • Academy of
Management Journal 5 7 (2014), pp. 1334- 1359 .
21 A. Murray, • Built Not to La.st, · Wall Street Journal, March 18, 2013,
p. All .
22 For a quick overview, see J. Davore n, "func tiona l S tructure
O rganization Strength and Weakn ess." Small Business Chronicle,
accessed Ju n e 2 5, 201 5, http://s m a ll busi n ess.ch ron .com/
functio nal -structure-o rganization-strength -weakness-60111.h trn l.
23 See, fo r in.stan ce, A. Wri ti ng, • Diffe re nt Types of O rgan izational
Structure." Small Business Chronicle, accessed June 2 5, 201 5,
h ttp://sm a llbusi ness.chro n.co m/ d iffere nt-types-organizational-
structure-723.html.
24 Fo r a qu ick overview. see .. Types of Bus iness Organizational
Structures,· Pingboard , July 24, 2013 , https://p ingboard.com/
blog/types-business-organizatio nal-structures/ .
25 J. R. Galbraith, Designing Matrix Organizatio11S That Actually \,\fork:
How IBM , Procter & Camble, and Others Design for Success (San
Francisco: Jo.ssey Bass, 2009); and E. Krell, "Managing th e Matrix, •
HR Magazine, April 2011, pp. 69- 71.
2 6 See, for instance, M. Bidwell, • polit ics a nd Finn Boundaries: How
O rganizational Structure, Group Interests, and Resources Affect
OuLo;ourcing," Organiu,tion Science, November- Decem ber 2012,
pp. 1622- 1642.
2 7 See, fo r exam p le, T. Sy a nd L S. D'Annunzio, "Ch allenges a nd
Strategies of Matr ix O rgan izations: Top-Level and Mid- Level
Ma nagers' Perspectives," Human Resource Plam1ing 28, no. 1
(2005), pp. 39- 48; and T. Sy and S. Cote, "Emotio nal Intelligen ce:
A Key Ability to Succeed in the Matrix O rganizatio n." Journal of
Management Development 23, no. 5 (2004), pp. 437- 4 55.
28 Based o n I. Tos.sell, •say Goodbye to Hierarchy, Hello to Holacracy, •
Globe and Mail, March 2 5, 2017, https://beta.theg)obean d mail.com/
report-on-busine.ss/ rob-m agazine/d i.
sources: ·z.oo Mulls Qualities Sought in Next Director,• toledoblade.
com, September 9, 2005, http://to ledoblade.com; S. Eder, ·z.oo Task
Force Sets JOO-Day Target fo r Submitting Investigation Report,•
toledoblade.com, March 25, 2005; S. Eder, “Experience with Animals
Lacking fo r Operations Chief: toledoblade.com, March 13, 2005; S.
Eder, “Reichard Held in High Esteem by rellO\v Zoo Veterina rians,•
toledoblade.com, March 9, 2005; M Green well, “Z.Oo Sees New Job As
Way to Fix Problems, • toledoblade.com, June 23, 2005; J. Laidman,
“Emp loyee Relations Top Zoo Leaders’ List, • toledoblade.com,
May 22, 2005; J. Laidm an, “Embattled Zoo Leaders Quit,· toledo·
blade.com, May 5, 2005; J. Laidman, “Clash of Philosophies, Loss
of An imals Triggered Turmoil; toledoblade.com, Marr.h 13, 2005;
J. La idman, “Fired Zoo Veterinarian’s File Mostly Positive., w ith
a Few Concerns,· toledoblade.com, March 9 , 2005; J. La id m a n,
“Toledo Zoo Veterinarian Bla mes Fi ring on His Warni ngs to
USDA,· toledoblade.com, Marr.h 8, 2005; J. Laidman, “Reds Probe 2
Animal Death, at Toledo Z.Oo, • toledoblade.com, February 24, 2004;
J. La idman a nd T. Vezner, “Staff Offers Criticism, Praise in Z.Oo
Survey,• toledoblade.com, May 2 7, 2005; J. Laidm an and T. Vezn er,
“Vet’s Deal Isn’t First to Silence Ex-Official,• toledoblade.com, May 2,
2005; J. Laid m an and T. Vezner, “In te rnal Battles Plu nge Zoo
into a Ca ld ron of Disconte nt,• toledoblade.com , March 20, 2005;
S. H. Staelin, “Z.Oo Board Tackl es Cha llenges: toledoblade.com,
April 16, 2005; T. Vezner, •z.oo Name., Chief Veterinarian, Ignoring
Task Force’s Proposal,• toledoblade.com, December 17, 2005; T.
Vezner, “Consu lta nt Hired to Oversee Zoo Ad mi nistration, ”
toledoblade.com, July 20, 2005; T. Vezner, “Z.Oo’s Ex-Vet on Ha nd
for Report: toledoblade.com, Ju ly 9 , 2005; T. Vezner, •z.oo Task
Force Report Dem ands Broad Changes,· toledoblade.com, July 7,
2005; T. Vezner a nd J. Laid man, “Flu rry of Changes Leaves Workers
Reeling; toledoblade.com, May 6 , 2005; T. Vezner, “Settlement
Bars Zoo Vet from Speaking to Panel: toledoblade.com, May I.
2005; T. Vezner, • z.oo Task Force’s Questions fo r Den nler Hit
Time Li mit, · toledoblade.com, April I, 2005; T. Vezner, “Inquiry
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Lucas County Commissioners Special Citizens Task Force fo r the
Zoo, Fina l Report, July 8 , 2005, http://””‘”v.co.l ucas.oh.us/
comm iS-
leaner organization, 473-474
learning organization, 509-511 , 5101
networked organizations, 16-17
small organization, 369
spiritual organization, 453-454
young organization, 369
organization downsizing, 473-474, 481
organizational-based incentives, 169- 170
organizational behaviour. A field of study that investigates the
impact of individuals, groups, and structure on behaviour within
organizations; its purpose is to apply such knowledge toward
improving an organization’s effectiveness. 5
behavioural science, contributions of, 9-11 , 1 Of
beyond oommon sense, 6-9
and big data, 7-8
building b locks of, 9-11
consistencies, 6-7
contingency approach, 11- 12
economic p ressures, responses to, 12-13
for everyone, 6
few absolutes, 1 1- 12
and finance, 9
OB model, 19-25
positive organizational scholarship, 18-19
rigour of, 1 1
organizational change. See change
organizational citizenship behaviour (OCB). Discretionary behav-
iour that is not part of an employee’s formal job requirements, but
that nevertheless promotes the effective functioning of the organi-
zation. 21 -22, 92
organizational c l imate. The shared perceptions organizational
members have about their organization and work environment.
355
organizational c,ommitment The degree to which an employee
identifies with a particular organization and its goals, and wishes to
maintain membership in the organization. 96, 107
organizational communication, 254-257
direction of communication, 254-255
electronic communications, 259-262
the grapevine, 256-257
small-group networks, 255-256, 2561
organizational culture. A system of shared meaning held by mem-
bers that distinguishes the organization from other organizations.
352
change, barrier to, 359
change, culture fo r, 506-511
changing organizational culture, 368-372
climate, creation of, 355
contrasting organizational cultures, 3531
creating and sustaining, 360-366
as descriptive tenn, 352-353
622 Glossary/ Subj ect Index
diversity, barrier to, 359
dominant culture, 353
encounter stage, 364
ethical dimension of, 355-35 7
ethical organizational culture, 369-370
vs. formalization, 354
formation of, 360-366, 360f
functions of, 354-355
global context, 372-373
and innovation, 358-359
keeping alive, 361-366
language, 367-368
learning culture, 366-368
as a liability, 359-360
material symbols, 367
mergers and acquisitions, barrier to, 360
merging cultures, strategies for, 360
metamorphosis stage, 364-366
and organizational climate, 355
positive organizational culture, 370-372
prearrival stage, 362-364
reading an organization’s culture, 379-381
rituals, 367
selection process, 361
shortcuts, culture of, 439
socialization, 362-366, 3621, 3651
stories, 367
strong vs. weak cultures, 354
and sustainability, 357-358
top management, 362
uniform cultures, 353-354
organizational demography. The degree to which members of a
work unit share a common demographic attribute, such as age,
gender, race, educational level, or length of service in an organiza-
tion, and the impact of this attribute on turnover. 224
organizational design
see also organizational structure
alternate design options, 469-4 7 4
bureaucracy, 466-468
circular structure, 4 73
divisional structure, 468
and employee behaviour, 4 78-480
functional structure, 467-468
matrix structure, 468-469, 4691
mechanistic model, 474-475, 4751
organic model, 474-475, 4751
organization downsizing, 473-474
simple structure, 466
team structure, 4 71-4 73
virtual structure, 470-471 , 470f
organizational j ustice. An overall perception of what is fair in the
workplace, composed of distributive, procedural, informational,
and interpersonal justice. 146, 1461
organizational resistance to change, 501-502, 5021
organizational size, 4 76
organizational strategy, 475-476, 4761
organizational structure. How job tasks are formally divided,
grouped, and coordinated. 458-465
see also organizational design
boundary spanning, 464-465
centralization, 463-464
chain of command, 461-462
decentralization, 463-464
departmentalization, 459-461
designing the proper structure, 4581
determinants and outcomes, 4811
environment, 477-478, 4781
formalization, 464
global context, 480-481
institutions, 478
organizational size, 4 76
organizational strategy, 475-476, 4761
reasons for differences in, 474-478
small business, 4 72
span of control, 462-463, 4621
technology, 476-477
work specialization, 458-459
organizational survival. The degree to which an organization is able
to exist and grow over the long term. 24
organizers, 49
other-inside comparison, 144
other-outside comparison, 144
outcome orientation, 352
outcomes. Key factors that are affected by some other variables. 21
outsourcing, 14
overconfidence bias. Error in judgment that arises from being far
too optimistic about one’s own perlormance. 422
overtime, 131
p
paradox theory. The theory that the key paradox in management is
that there is no final optimal status for an organization. S(MH;()7
part-time, 131
participation, 503
participative leader, 391
participative management. A process in which subordinates share
a significant degree of decision-making power with their immediate
superiors. 185
path-goal theory. A leadership theory that says it is the leader’s
job to assist followers in attaining their goals and to provide the
necessary direction and/ or support to ensure that their goals are
compatible with the overall objectives of the group or organization.
390-392, 391 f
pay for perlormance, 165-166
penalty kicks, 421-422
people orientation, 352
people skills. See interpersonal skills
perceived organizational support (POSJ. The degree to which
employees believe an organization values their contribution and
cares about their well-being. 97
perceiver, 38-39
perceiving types, 49
perception. The process by which individuals organize and interpret
their impressions in order to give meaning to their environment. 38
attribution theory, 38-43, 411
global differences, 68-69
importance of, 46
influencing factors, 38-39, 381
the perceiver, 38-39
perceptual errors, 38-46
and relation conflicts, 61
selective perception, 251-252
the situation, 39
and stress, 120
the target, 39
perceptual errors, 42-46
performance evaluations, 46
teams, 220- 221
performance expectations, 46
performance feedback. See feedback
performance reviews. See performance evaluations
performance-rewards relationship, 135
performing. The fourth stage in group development , when the group
is fully functional. 212
persistence, 126
personal appeals, 284
personal power, 278-279
personality. The sum total of ways in which an individual reacts to
and interacts with others. 47
Big Five Personality Model, 49-54, 51f, 52f, 223, 384, 432
change over l~etime, 48
core self-evaluation, 56-57
creative personality, 432
and creativity, 432
Dark Triad, 54-56
determinants of, 48
in effective teams, 223
“fake proof” personality test , 50
global differences, 69
impact of, 47
measurement of, 4 7
Myers-Briggs Type Indicator (MBTI), 49
and negotiation, 327–329
personality traits, 48-54, 327–329
proactive personality, 58
self-monitoring, 57-58
situation strength theory, 59-60
and stress, 120-121
personality conflicts, 320
personality traits. Enduring characteristics that describe an indi-
vidual’s behaviour. 48-54, 5 lf, 521
perspective-taking, 328, 434
Peter Principle, 385
physical activity, 121
physical CO, 104-105
physical distance, 263
physical sciences, 11
physiological needs, 128
piece-rat e pay plan. An individual-based incentive plan in which
employees are paid a fixed sum for each unit of production com-
pleted. 166- 167
political behaviour. Those activities that influence, or attempt to
influence, the distribution of advantages and disadvantages within
the organization, 291 , 298-299
political skill. The ability to influence others in such a way as to
enhance one’s objectives. 283
politicking, 294, 306-307
politics
ofchange,505
ethics of behaving politically, 298- 299
“frenemies,” 295
global context, 300
impression management, 294- 298
Glossary/ Subj ect Index 623
political behaviour, 291 – 292, 293, 298- 299
politicking, 294, 306–307
reality of politics, 292- 294
in your workplace, 2921
position power, 388, 389
positive organizational behaviour, 18-19
posit ive organizational culture. A culture that emphasizes building
on employee strengths, rewards more than punishes, and empha-
sizes individual vitality and growth. 370–372
posit ive organizational scholarship. An area of OB research that
concerns how organizations develop human strength, foster vitality
and resilience, and unlock potential. 18-19
positive reinforcement , 142
positive relationships, 503
positive work environment , 18-19
power. A capacity that A has to influence the behaviour of B, so that
B acts in accordance with Pis wishes. 276
abuse of power, 284-285
bases of power, 277- 280
coercive power, 277, 279
continuum of responses to, 280f
and control, 276
deference to those in power, 304–305
and dependence, 276, 280-282
desire for power, 303
effective bases of power, 279
effects on people, 284-288
empowerment , 288-291
expert power, 278
formal power, 277- 278
global context, 300
influence tactics, 282- 284
legitimate power, 277- 278
personal power, 278-279
and politics. See political behaviour; politics
power variables, 285
referent power, 278
reward power, 277
threat to established power relationships, 502
power di stance. A national culture attribute that describes the
extent to which a society accepts that power in institutions and
organizations is distributed unequally. 83
PowerPoint, 259
prearrival stage. The period of learning in the socialization pro-
cess that occurs before a new employee joins the organization.
362–364
pressure, 2821
prevention focus. A self-regulation strategy that involves striving for
goals by fulfilling duties and obligations. 139
private information, 9
pro sports strikes, 338
proactive personality. A person who identifies opportunities, shows
initiative, takes action, and perseveres until meaningful change
occurs. 58
problem formulation. The stage of creative behaviour that involves
identifying a problem or an opportunity that requires a solution as
yet unknown. 431
problem solving, 3 17, 318, 320, 327
problem-solv i ng (or process-improvement) team. A group of 5
to 12 employees from the same department who meet for a few
hours each week to discuss ways of improving quality, efficiency,
and the work environment. 201
624 Glossary/ Subj ect Index
procedural justice. The perceived fairness of the process used to
determine the distribution of rewards. 147
process c,onflict. Conflict over how work gets done. 312-313
process departmentalization, 460
process theories, 127
equity theory, 144-1 48, 1451
expectancy theory, 134-137, 134f, 136f
fair process and treatment, 146-148
goal-setting theory, 137-1 40, 1391
reinforcement theory, 141-143
reward system, responses to, 143-150
self-determination theory, 148-149
self-efficacy theory, 140-141, 140f
processes. Actions that individuals, groups, and organizations
engage in as a result of inputs and that lead to certain
outcomes. 20
product departmentalization, 460
production-oriented leader. A leader who emphasizes the techni-
cal or task aspects of the job. 386-387
productivity. The combination of the effectiveness and efficiency of
an organization. 24, 92, 176, 479-480
profit-shari ng plan. An organization-wide incentive plan in which the
employer shares profits with employees based on a predetermined
formula. 169
progress, 150
project team, 202-203
promotion foc us. A self-regulation strategy that involves striving for
goals through advancement and accomplishment. 139
protected groups. The four groups designated by the Employment
Equity Act as the beneficiaries of employment equity (women, peo-
ple with disabilities, Aboriginal people, and visible minorities). 102
provincial, 105
proxemics. The study of physical space in interpersonal relation-
ships. 263
psychological contract, 347
psychologi cal empowerment. Employees’ belief in the degree to
which they affect their work environment, their competence, the
meaningfulness of their job, and their perceived autonomy in their
work. 97
psychology, 10
psychopathy. The tendency for a lack of concern for others and a
lack of guilt or remorse when one’s actions cause harm. 56
punctuated-equi libri um model. A set of phases that temporary
groups go through that involves transitions between inertia and
activity. 2 13-215, 214f
punishment, 142
purpose, 453
Pygmalion effect, 46, 141
R
random socialization, 365f
randomness error. The tendency of individuals to believe that they
can predict the outcome of random events. 423-424
rational. Refers to choices that are consistent and value-maximizing
within spec~ied constraints. 416
rational decision-making model . A six-step decision-making
model that describes how individuals should behave in order to
maximize some outcome. 41 ~ 17, 4161
rational persuasion, 282f
re-employment, 13f
receiver, 248
recession, 12-1 3
recovering organization, 454
reduced hours, 13f
referent power. Influence based on possession by an individual of
desirable resources or personal traits. 278
reflected best-self, 19
reflexiv ity. A team characteristic of reflecting on and adjusting the
master plan when necessary. 227
refreezing. Stabilizing a change intervention by balancing driving and
restraining forces. 495
reinforcement theory. A theory that says that behaviour is a func-
tion of its consequences. 141 -143, 142f
relation conflicts, 6 1
relational job design. Constructing jobs so employees see the posi-
tive difference they can make in the lives of others directly through
their work. 17S-179
relationship conflict. Conflict based on interpersonal relationships.
312-313
relationship conflicts, 229
relationship-oriented leaders, 388-389
relationship strength, 320
relaxation techniques, 121
religion-based organization, 454
representative partici pation. A system in which employees par-
ticipate in organizational decision making through a small group of
representative employees. 185-186
resistance, 279
resistance to change, 500-505
individual resistance, 500-501 , 5011
organizational resistance, 501-502, 502f
overcoming, 502-505
resource allocation, 502
respect, 453
responsible leadership, 398-402
restraining forces. Forces that hinder movement away from the
status quo. 495
restraint. A national culture attribute that emphasizes the importance
of controlling the gratification of needs. 84
retired, 13f
reward power. Power that achieves compliance based on the ability
to distribute rewards that others view as valuable. 277
reward system
bonus, 168-169
and conflict, 316
effective reward systems, 164-17 4
employee recognition programs, 171-1 72
employee stock ownership plan (ESOP), 170
flexible benefits, 170-1 71 , 187
group-based incentives, 169-170
individual-based incentives, 166-1 69
intrinsic rewards, 171-1 72
management reward follies, 172-174, 173f
merit-based pay plans, 167-168
organizational-based incentives, 169-170
pay structure, establishment of, 164-1 65
piece-rate pay plan, 166-167
profit-sharing plan, 169
responses to, 143-1 50
teams, 220-221
variable-pay programs, 165-170, 187
rewards
extrinsic rewards, 149
intrinsic rewards, 149, 171-172
and organizational cutture, 370-371
rewards-personal goals relationship , 135-136
risk aversion. The tendency to prefer a sure gain o f a moderate
amount over a riskier outcome, even if the riskier outcome m ight
have a higher expected payoff. 424
risk preference, 424
risk-taking , 352
rituals. Repetitive sequences of activities that express and reinforce
the key values of the organization; what goals are most important;
and which people are important and which are expendable. 367
Rokeach Value Survey (RVS), 82
role. A set of expected behaviours of a person in a given position in a
social unit. 206, 223- 224, 2241
role ambiguity. A person is unclear about his or her role. 207
role confli c t . A situation in which an individ ual finds that complying
w ith one role requirement may make it more difficult to comply with
another. 206-207
role demands, 119
role expectations. How others believe a person should act in a
given situation, 206
role overload. Too much is expected of someone. 207
role stress, 122
role underload. Too little is expected of someone, and that person
feels that he or she is not contributing to the group. 207
romantic relationships in the workplace, 289
rules, 357
rumours, 256-257
s
safety needs, 128
salary, 131
satisfaction, 130f
satisficing. To provide a solution that is both satisfactory and suf –
ficient. 419
satisfiers, 130f
scarcity, 281
schedules of reinforcement, 142-1 43, 1431
selection process, 361
selective perception. People’s selective interpretation of what they
see based on their interests, background, experience, and atti-
tudes. 42-43, 251-252
self-actualization. The drive to become what a person is capable of
becoming. 128
self-conc,ordance. The degree to which a person’s reasons for
pursuing a goal are consistent with the person’s interests and core
values. 149
self-determination theory. A theory of motivation that is concerned
w ith the beneficial effects of intrinsic motivation and the harmful
effects of extrinsic motivation. 148-1 49, 2901
sett-d irected team, 201 – 202
sett-efficacy, 122
self-efficacy theory. Individuals’ beliefs in their abilrry to perform a
task influence their behaviour. 140-141, 1401
self-fulfilling prophecy. A concept that p roposes a person will
behave in ways consistent with how he or she is perceived by oth –
ers. 46, 141
sett-generated feedback, 136-137
sett-inside comparison, 144
sett-interest , 500
self-managed (o r self-directed) team. A group of 10 to 15
employees who take on many of the responsibilities of their former
managers. 201- 202
self-monitoring. A personality trait that measures an individual’s abil-
ity to adjust behaviour to external, situational factors. 57- 58
sett -motivation, 127
sett-outside comparison, 144
sett-promotion, 2961, 297
sett -report measures, 4 7 -48
Glossary/ Subj ect Index 625
self-serving b ias. The tendency for individuals to attribute their own
successes to internal factors while putting the blame for failures on
external factors. 42, 69
sender, 248
sensing types, 49
serial socialization, 3651
servant leader ship. A leadership style marked by going beyond the
leader’s own self-interest and instead focusing on opportunities to
help followers grow and develop. ~ 01
service employees, 16
service o rganizations, and effectiveness, 24
sexual harassment. Unwelcome behaviour of a sexual nature in the
workplace that negatively affects the work environment or leads to
adverse job-related consequences for the employee. 286-288
shirkers, 235-236
short-term assignee, 131
short-term orientation. A national culture attribute that emphasizes
the here and now and accepts change more readily. 84
silence, 253
silos, 459
simple structure. An organizational design characterized by a low
degree of departmentalization, wide spans of control, authority
centralized in a single person, and little formalization. 466
single-loop learning. A process of correcting errors using past rou-
tines and present policies. 51 O
situation, 39
situation strength theory. A theory indicating that the way person-
ality translates into behaviour depends on the strength of the situ-
ation. 59-60
Situational Judgment Test of Emotional Intelligence (SJT of El}, 65
Situational Leadership® (SL). A leadership theory that focuses on
the readiness o f followers. 389-<390, 390f
skill variety. The degree to which the job requires a variety of d iffer-
ent activities. 174
skills development
changing attitudes, 114- 115
charisma, 411-413
creative problem solving, 448-449
delegation of authorrry, 488-489
development of, 32-35
effective listening, 272- 273
enriched jobs, designing, 195-196
goal setting, 160-161
negotiation, 342-343
organizational change, 518-519
politicking, 306-307
reading an organization's culture, 379-381
reading emotions, 77- 78
team meeting, 238-239
small-group networks, 255-256, 2561
small organization, 369
SMART goals, 138
smiles, 64
smoothing, 319
social cognitive theory, 140- 141
social learning theory, 140-141
social loafing, 225, 229-230
social media websites, 261 - 262, 268
626 Glossary/ Subj ect Index
social needs, 1 28
social psychology, 10-11
social support, and stress, 120, 121
social trends, 493
social ization. The process that adapts new employees to an organi-
zation's culture. 362-<366, 3621, 3651
social ized charismatic leadership. A leadership concept that
states that leaders convey values that are other-centred vs. se~-
centred and who model ethical conduct. 400
socially responsible organization, 454
sociology, 11
span of cont rol. The number of employees who report to a
manager. 462-463, 4621
spiritual organization, 453-454
spirituality. See wO!l