Need presentation based on uploaded document

15-18 slides presentation 

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Need bullet points and good related pictures 

and also need notes on side explaining detailed about each slide 

Team project social media

2. Triad: The changing environment of business through social media 15%

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Create a PowerPoint presentation that you will deliver to the class on the changes being brought about by social media and virtual technology – changed in culture, in climate, in how we form relationships, and how we maintain them. This presentation is to reflect the depth of a ten-page research paper condensed and made visual for the audience in a 15 -18 slides presentation with extensive speaking notes. You have 20 minutes to present.

Your task is to explain the changing environment. Research the impact of social media on marketing, the dominance of social media marketing by what the US government is admitting are monopolies, the value of data. The corporate assessment of the “forced virtual work” – who is adapting quickly and successfully to it.

Given the above what are the changing internal communication landscape in business, in particular, the use of social media to hold conduct business and maintain and create relationships in within and outside of the organization  such as meetings, distribute information, use in marketing strategies. The changing culture for example uses of social media even just email can level the power distances within a company, and the impact on the culture of the organization. 

Provide one company as an example, examine how this company has adapted its social media practices over time, and how this has impacted organizational culture and performance. 

You should have approximately 12-18 slides, do not provide a lot of writing on the slides. Use the slides to visually represent your concept and link to the key words. In your presentation, use plenty of graphics to support your ideas and include a title slide, and reference slide to complete the assignment.

You will provide notes under the slides to support your presentation.  Down below in the “Notes” section you write your presentation detail notes with sources in APA style citation format and frequency.  You must access and use – 3 peer reviewed Articles  and text and Incorporate this information into your presentation and notes.

Marking rubric

Organization behaviour

WEIGHT

Instructions

Mark

Presentation
Engage and motivate

10%

 

The slides are to open your audience to the learning – to influence interest and whole-brain thinking. Your slides notes contain all the speaking points of the slides and must be properly cited. You should have about half a page of notes per slide. Slides are available to your audience and you will record your presentation and answer questions either live or in a forum

 

History of the of social media
Change in business driving change with social media

5%

ALL your comments MUST be supported by research evidence that is taken from academic or professional sources which are immediately listed as a reference within the paragraph (NOT Wikipedia).

Crisis of the virus and growth in use of social media

10%

ALL your comments MUST be supported by research evidence that is taken from academic or professional sources which are immediately listed as a reference within the paragraph (NOT Wikipedia).

 

Change in leadership resulting with virtual leadership, management and engagement.

10%

ALL your comments MUST be supported by research evidence that is taken from academic or professional sources which are immediately listed as a reference within the paragraph (NOT Wikipedia).

 

Change in teams use and interactions due to virtual tools

10%

Example of programs that are dealing proactively with the issue
ALL your comments MUST be supported by research evidence that is taken from academic or professional sources

Social media and branding, maintain relationships, distributing information

10%

ALL your comments MUST be supported by research evidence that is taken from academic or professional sources

Use of social media in recruitment

10%

ALL your comments MUST be supported by research evidence that is taken from academic or professional sources

 

The impact of social media use and the culture of the organizations

15%

ALL your comments MUST be supported by research evidence that is taken from academic or professional sources

The above is industry change now research one example use your case to illustrate – support the points raised above

10%

ALL your comments MUST be supported by research evidence that is taken from academic or professional sources

Apa compliant
Quality academic sources

10%

ALL your comments MUST be supported by research evidence that is taken from academic or professional sources


Concepts, Controversies, ·
Eighth
Canadian
Edition

• •
an1za 1ona

e av1our
Concepts, Controversies, Applications

This page intentionally left blank

Concepts, Controversies, Applications
Nancy Langton
University of British Columbia
Stephen P. Robbins
San Diego State University
Timothy A. Judge
University of Notre Dame
1) Pearson

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9780134645858
10 9 8 7 6 5 4 3 2 1
Library and Archives C ana da Cataloguing in Public ation
R obbins, Stephen P., 1943- , author O rganizational behaviour: concepts, controversies, applications I N ancy Langton
(University of British Columbia), Stephen P. R obbins (San Diego State U niversity), Timothy A. J udge
(University of Notre Daine) – 8th Canadian ed.
Includes index.
ISBN 978-0-13-464585-8
1. O rganizational behavior-Textbooks. 2. M anagement-Textbooks. l. Langton, N ancy, 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 Organizational Behaviour?
Perception, Personality, and Emotions
Values, Attitudes, and Diversity 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 Teamwork
OB ON THE EDGE Trust
Interacting Effectively
CHAPTER 7
CHAPTER 8
CHAPTER 9
Communication
Power and Pol itics
Conflict and Negotiation
OB ON THE EDGE Workplace Bullying
PART 4 Sharing the Organizational Vision
CHAPTER 10 Organizational Culture
CHAPTER 11 Leadership
CHAPTER 12 Decision Making, Creativity, and Ethics
OB ON THE EDGE Spiritua lity in the Workplace
PART 5 Reorganizing the Workplace
CHAPTER 13 Organizational Structure
CHAPTER 14 Organizational Change
ADDITIONAL CASES
ENDNOTES
GLOSSARY/SUBJECT INDEX
NAME AND OR GANIZATION INDEX
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
Understanding the Workplace
CHAPTER 1 What Is Organ izational Behaviou r?
The Importance of Interpersonal Skills
Defining Organizational Behaviour
What Do We Mean by Organization?
OB Is for Eveiyone
Complementing Intuition with Systematic Study
Big Data
Disciplines 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 Opportunities 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: Managing 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
XVII
XXIX
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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
Personality 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 61
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 Moral Principles 83
Assess ing Cultural Values 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 Commitment 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: Feeling Excluded
ETMICAL DILEMMA: Tell-All Websites
CASE INCIDENT: Job Crafting
CASE INCIDENT: Walking the Walk
FROM CONCEPTS TO SKILLS: Changing Attitudes
CHAPTER 4 Theories 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
Responses 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
109
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Contents 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 Development
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
190
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x Contents
PART 3
OB at Work 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 Communication
The Communication Process
Choosing a Channel
Barriers to Effective Communication
Filtering
Selective Perception
Information Overload
Emotions
Language
Silence
Lying
Organizational Communication
Direction of Communication
Small-Group Networks
The Grapevine
Modes of Communication
Oral Communication
Written Communication
Nonverbal Communication
Global Implications
Cultural Barriers to Communication
Cultural Context
A Cultural Guide
Su mmary
OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU
POINT/COUNTIRPOINT: Employees’ Social Media Presence
246
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267
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?
274
276
277
277
278
279

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
Summary
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
Negotiating in a Social Context
Reputation
Relationships
Third-Party Negotiations
Mediator
Arbitrator
Contents xi
280
280
281
282
283
283
284
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285
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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
334
334
334
335
335
335
337
POINT/COUNTIRPOINT: Pro Sports Strikes Are Caused by Greedy Owners 338
BREAKOUT GROUP EXERCISES 339
EXPERIENTIAL EXERCISE: A Negotiation 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 Organizational Cu lture
What Is Organizational Culture?
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
Creating and Sustaining an Organization’s Culture
How a Culture Begins
Keeping a Culture Alive
How Employees Learn Culture
Stories
Rituals
Material Symbols
Language
Changing Organizational Culture
Creating an Ethical Organizationa.l Culture
Creating a Positive Organizational Culture
Global Implications
Summary
OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU
POINT/COUNTIRPOINT: Orga11izntiom Should Stri,ie to Create
350
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354
354
355
355
357
358
359
360
361
361
366
367
367
367
367
368
369
370
372
373
374
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 Leadership?
Leadership 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 Leadership
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 Decisions Be Made?
The Rational Decision-Making Process
How Do Individuals Actually Make Decisions?
Bounded Rationality in Considering Alternatives
Intuition
Judgment Shortcuts
Group Decision Making
Groups vs. the Individua.l
Groupthink and Groupshift
Group Decision-Making Techniques
Creativity in Organizational Decision Making
Creative Behaviour
Causes of Creative Behaviour
Creative Outcomes (Innovation)
What About Ethics in Decision Making?
Four Ethical Decision Criteria
Making Ethical Decisions
Global Implications
Decision Making
Contents xiii
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xiv Contents
PART 5
Creativity
Ethics
Summary
OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU
440
440
441
442
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
456
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461
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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 Te11sio11s 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 Organizational 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
490
492
493
494
494
495
496
497
498
500
500
501
502
sos
506
506
507
509
511
512
513
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 INDEX 610
NAME AND ORGANIZATION INDEX 629
LIST OF CANADIAN COMPANIES, 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 content and has quickly 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 cousin, it expresses its own vision
and voice. It provides the context for understanding organizational behaviour {OB) in
the Canadian workplace and highlights the many Canadian contributions to the field.
Indeed, it goes a step further than most OB texts prepared for the Canadian marketplace.
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?
• What are the implica tions of the theory for everyday life? OB, after all, is not
something that applies only in the workplace.
This text is sensitive to important Canadian issues. Subject matter reflects the broad
multicultural flavour of Canada and also highlights the ro les of women and visible
minorities in the workplace. Examples reflect the broad range of organizations in
Canada: large, small, public and private sector, unionized and non-unionized.
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 continued emphasis on providing the latest
research findings. Based on reviews from numerous instructors 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, while 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 business 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 captions in every chapter link the chapter content to con-
temporary real-life worldwide situations to enhance the student’s understand-
ing of hands-on application of concepts.

xviii Preface
• NEW These features are either completely ne,v or substantially updated
with in each chapter as applicable to reflect ongoing challenges in business
worldwide and focus the student’s attention on new topics:
• Learning Objectives
• Exhibits
• Point/Counterpoint
• NEW The followi ng end-of-chapter material is either completely ne,v or sub-
stantially revised and updated for each chapter to bring the most contempo-
rary thinking to the attention 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 The Importance of Interpersonal Skills
• New research in Big Data
• New feature! Career Objectives (What Do I Say About My Termination?)
• New Point/Counterpoint (The Battle 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 Dummies)
Chapter 2: Perception, Personality, and Emotions
• New Opening Vigneue (Michele Romanow)
• New section in The Myers-Briggs Type Indicator
• New research and discussion in The Big Five Personality Model
• New sections on Big Five personality tra it research: Conscientiousness,
Emotional Stabi lity, Extraversion, Openness to Experience, and Agreeableness
• New research in The Dark Triad
• New major section: O ther Traits ( on traits that are socially undesirable)
• New research and discussion in Moral Emotions

Preface xix
• New research and d iscussion in Choosing Emotions: Emotional 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 (Ladies Learning Code)
• New research in What Causes Job Satisfaction?
• New section: Job Conditions
• New section: Personality
• New section: Pay
• New section: Life Satisfaction
• New major section: Counterproductive Work Behaviour (CWB)
• New feature! Career Objectives (Is ll Okay lo Be Gay at Work?)
• New Point/Counterpoint (Millennials 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 Tools)
• 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-Determination Theory
• New Global Impl ications section: Justice
• New Ethical Dilemma (The New GPA)

xx Preface
Chapter 5: Motivation in Action
• New Opening Vignette (G Adventures)
• New research and discussion 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 discussion in Telecommuting
• New in ternational research and discussion in Employee Involvement and
Participation
• New research in Participative Management
• New research in Representative Participation
• New international research and new discussion in How lo Pay: Reward ing
Individual 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 Employee 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 discussion in Why Have Teams Become So Popular?
• New discussion in Problem-Solving Teams
• New research in Cross-Functional Teams
• New research in Virtual Teams
• New research and discussion in Multiteam Systems
• New international research in Cl imate ofTrust
• New material in Composition (of teams)
• New research and discussion in Personal ity of Members
• New section: Cultural Differences
• New section: Positive 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 feature! Career Objectives ( Can I Fudge the Numbers and Not Take the Blame?)
• Revised Ethical Dilemma (Deal ing with Shirkers)
• New Case Incident (Intragroup Trust and Survival)
OB on the Edge: Trust
• Revised section: What Can Leaders Do to Increase Trust?
• New discussion in Building Team Trust
• New major 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 major section: Modes of Communication
• New section: Oral Communication
• New section: Meetings
• New section: Videoconferencing and Conference Call ing
• New section: Telephone
• New section: Wriuen Communication
• New section: Letters
• New section: PowerPoinl
• 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 {Organizational Leveraging of Social Media)
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 Political?)
• New Experiential Exercise {Comparing Influence Tactics)
Preface xxi

xxii Preface
Chapter 9: Conflict and Negotiation
• 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 discussion in What Is Organizational Culture?
• New section: Culture and Sustainability
• 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 (Greeting 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 Trail Theories: Are Leaders Different from Others?
• New research in What Is Charismatic Leadership?
• New research in Transactional and Transformational Leadership

• New research in How Transformalional Leadership Works
• New section: Transformalional vs. Charismatic Leadership
• 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 Leadership?)
• New Ethical Dilemma (Smoking Success)
• New Case Incident (Leadership 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: Creative Environment
• New international research and d iscussion in Four Elhical 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 Spiriluality and Mindfulness
• New discussion 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-Millennium Tensions in lhe Flexible 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 students to think about how OB
appl ies to their everyday lives and engage students in their reading of the
material. These questions first appear as a bullet list in the chapter opener,
under the heading OB Is for Everyone, and then appear throughout each
chapter.
• The Global Implications section addresses and highl ights how OB principles
vary across cultures.
• Summary provides a review of the key points of the chapter, whi le the Snapshot
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 at Work, a set of resources designed to help
students apply the lessons of the chapter. Included in OB al Work are the fol-
lowing features:
• For Revie,v poses a series of questions that are linked to the learning
outcomes identi fied in the chapter opener.
• For Managers outlines ways that managers can apply OB in the
workplace.
• For You outlines how OB can be used by individuals 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 stimulating
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 students to exercise their decision-making skills. Each case
enables an instructor to quickly generate class discussion on a key theme
within the chapter.
• From Concepts to Skills provides a wide range of appl ications for stu-
dents. The section begins with a practical set of tips on topics such as
read ing emotions, setting goals, and solving problems creatively, which
demonstrate real-world applica tions of OB theories. These tips are fol-
lowed by the features Practising Skills and Reinforcing Skills. Practising
Sliills presents an additional case or group activity to apply the chapter’s
learning outcomes. Reinforcing Skills asks students to talk about the
material they have learned with others, or to apply it to their own per-
sonal experiences.
• Exclusive to the Canadian edition, OB on the Edge (following 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 spiri-
tua lity in the workplace. Since this is a stand-alone feature, 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 organizations. All of these cases require
students to apply material from a variety of chapters.
Preface xxv

xxvi Preface
Supplements
Mylab Management
My Lab Management is an onl ine study tool for students and an online homework and
assessment Looi 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
principles. New and updated MyLab Management resources include the following:
• 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-reflection and engagement in
students, enhancing their ab ility lo connect with concepts taught in principles
of management, organizational behaviour, and human 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 display that shows how their results compare to the class as a whole.
Instructors will also have access to this graphic representation of resu lts lo pro-
mote classroom discussion.
• Updated Personalized Study Plan. As students work through MyLab Manage-
ment’s Study Plan, they can clearly see which topics they have mastered- and,
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 helps students understand 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-making 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 simulation, students
receive feedback to help them understand the implications of their choices
in the management environment. These simulations can now be assigned by
instructors and graded directly through MyLab Management.
• Learning Catalytics. learning Calalytics is a “bring your own device• student
engagement, assessment, and classroom intelligence system. IL allows instruc-
tors to engage s tudents in class with a variety of question types designed lo
gauge student understanding.
• 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 quizzes or wrillen-response format in MyLab Management’s
Writing Space.
• Lesson Presentations. Students can study key chapter topics and work through
in teractive assessments to test their knowledge and mastery of concepts. Each
presentation allows students to explore through expertly designed s teps of
read ing, practising, and testing lo ensure that s tuden ts not only experience the

content but also truly engage with each topic. Instructors also have the abil ity
to assign quizzes, projects, and follow-up discussion 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 foundational manage-
ment topics. As students work through questions, the Dynamic Study Modules
assess their knowledge and only show questions that s till require practice.
Dynamic Study Modules can be completed 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, highl ight text in different colours, 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 quick navigation to key parts of the eText using
a tab le of contents and provides full-text search.
Most of the following 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-chapter exercises, notes on lhe
Case Incidents and From Concepts to Skills, and key terms.
• Computerized Test Bank. The Test Bank contains over 1800 items, including
multiple-choice, true/ false, and discussion 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 difficu lty rating, and a classification
(recall/ appl ied). Pearson’s computerized 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 individual 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, assessment
tools, and online course materials are tailored to meet your specific needs. This highly
qualified 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 people worked hard lo give this eighth Canadian 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
Jennifer Murray, Content Developer, Claudia Forgas, Production Editor, 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
difficult parts of th is project. I can’t thank her enough for her dedication lo the task.
Claudia Forgas was the Production Editor for the project. Claudia has worked on
a number of my projects and still continues lo amaze for how well she makes sure
everything is in place and written clearly. Claudia provided a wealth of support, great
ideas, and goodwill throughout the production process. Turning the manuscript into
the text you hold in your hands could not have happened without her inspired leader-
ship. 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 would 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 also wanl to acknowledge my divisional secretary, Nancy Tang, who helps keep
me on track in a variety of ways. I could 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
elicit feedback over the years and editions. Many thanks to several 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 material fresh and alive.
Finally, I wanl to acknowledge the many reviewers of this text for their detailed,
helpful comments. I appreciate the lime and care that they pul into their reviewing.
The reviewers include Nancy Breen (Nova Scotia Community College), Sabrina Deutsch
Salamon (York University), Harold Ekstein (George Brown College), Leah Hamilton
(Mount Royal University), Shari Ann Herrmann (Kwanllen Polytechnic University),
Puneet Luthra (Seneca College), Jody Merrill (University of Windsor), John Predyk
(Vancouver Island Univers ity), Wayne Rawcliffe (Univers ity of British Columbia),
Sandra Steen (University of Regina), and SujayVardhmane (George Brown College).

ABOUT THE AUTHORS
Nancy Langton received her Ph.D. from Stanford University. Since completing
her graduate studies, Dr. Langton has taught at the University of Oklahoma and the
University of British Columbia. Currently a member of the Organizational Behaviour
and Human Resources d ivision in the Sauder School of Business, UBC, she teaches
at the undergraduate, MBA, and Ph.D. levels and conducts executive programs on
attracting and retaining employees, lime management, 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 Council of Canada,
and her research interests have focused on human resource issues in the workplace,
including pay equity, gender equity, and leadership and communication styles. Her
articles on these and other 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 Administrative Sciences
Association of Canada.
Dr. Langton routinely wins high marks from her students for teaching. She has been
nominated many times for the Commerce Undergraduate Society Awards, and has won
several honourable mention plaques. She has also won the Sauder School of Business’s
most prestigious award for teaching innovation, The Talking Stick. The award was given
for Dr. Langton’s redesign of the undergraduate organizational behaviour course as
well as the many activities that were a spin-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 slums 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 first 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 quills or taking photographs,
she is either reading novels recommended by her book club colleagues or studying
cookbooks for new ideas. All of her friends would say that she makes the best pizza
from scra tch in all of Vancouver, and one has even offered to supply venture capital to
open a pizza parlour.

xxx About the Authors
Stephen P. Robbins
Education
Ph.D., University of Arizona
Professional Experience
Academic Positions: Professor, San Diego Stale University, Southern Ill inois University
al Edwardsville, University of Baltimore, Concord ia University in Montrea l, and
University of Nebraska at Omaha.
Research: Research in terests have focused on conflict, power, and politics in organi-
zations; behavioural decision making; and the development of effective interpersonal
ski lls.
Books Published: World’s best-selling author of textbooks in both management and
organizational behaviour. His books have sold more than 5 mill ion copies and have
been translated into 20 languages; editions have been adapted for Canada, Austral ia,
South Africa, and India, such as these:
• Essentials of Organizational Behavior, 14th ed. (Pearson, 2017)
• Management, 14th ed. with Mary Coulter (Pearson, 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 and 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
(Financial Times/Prentice Hall, 2004)
Other Interests
In his •other life,• Dr. Robbins actively participates in masters’ track competition.
After turning 50 in 1993, he won 18 national championships and 12 world titles.
He is the current world record holder at 100 metres (12.37 seconds) and 200 metres
(25.20 seconds) for men 65 and over.

Timothy A. Judge
Education
Ph.D., University of Illinois al Urbana-Champaign
Professional Experience
Academic Positions: Franklin D. Schurz Chair, Department of Management, Mendoza
College of Business, University of Notre Dame; Visiting Distinguished Adjunct Profes-
sor of King Abdulaziz University, Saudi Arabia; Visiting Professor, Divis ion of Psychol-
ogy & Language Sciences, University College London; Matherly-McKethan Eminent
Scholar in Management, Warrington College of Business Administration, University of
Florida; Stanley M. Howe Professor in Leadership, 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 Comenius University, Slovakia; Instructor, Indus-
trial/Organizational Psychology, Department of Psychology, University of Il linois at
Urbana-Champaign.
Research: Dr. Judge’s primary research interests are in {l) personality, moods, and
emotions; (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 major 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. McCormick 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 Organizational 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 Illinois. 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.
Other Books Published: 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 cannot keep up (literally!) with Dr. Robbins’ accomplishments on the
track, Dr. Judge enjoys golf, cooking and baking, literature (he’s a particular fan of
Thomas Hardy and is a member of the Thomas Hardy Society), and keeping up with
his three children.
About the Aut hors xxxi

2
What Is Organizational
Behaviour?
PA RT 1
UNDERSTAND 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 behavioural 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
Until the late 1980s, business school curricula emphasized the technical aspects of
management, focusing on economics, accounting, finance, and quantitative techniques.
Course work in human behaviour and people skills received less attention. Since then,
however, business schools have realized the significant role interpersonal skills play
in determining a manager’s effectiveness. In fact, a survey of over 2100 CFOs across
20 industries indicated that a lack of interpersonal skills is the lop reason why some
employees fail to advance.2
Incorporating OB principles into the workplace can yield many important organi-
zational outcomes. For one, companies known as good places lo work in 2017- such
as Toronto-based Royal Bank of Canada (RBC); SL John, New Brunswick-based Irving
Oil; Bedford, Nova Scotia-based Clearwater Seafoods; Winnipeg-based Aboriginal
Peoples Television Network; Regina-based SaskTel; Calgary-based Agrium, and
Vancouver-based West FraserTimber3- have been found to generate superior financial
performance.4 Second, developing managers’ interpersonal skills helps organizations
attract and keep high-performing employees, which is important since outstanding
employees are always in short supply and are costly lo replace. Third, 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 workplaces and more
than 200 000 respondents showed that social relationships among co-workers and
supervisors were strongly related to overall job satisfaction. Positive social relation-
ships were also associated with lower stress at work and lower intentions to quit.5
Further research indicates that employees who relate lo their managers with sup-
portive dia logue and proactivity find that their ideas are endorsed more often, which
improves workplace satisfaction.6 Fourth, increasing the OB element in organizations
can foster social respons ibil ity awareness. Accordingly, universities have begun to
incorporate social 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 understand that in today’s competilive and demand-
ing workplace, managers can’t succeed on their technical
ski lls alone. Succeeding in the workplace also takes good
people skills. This book has been written to help managers
and employees develop those people skills. To learn more
about the kinds of people skills needed in the workplace,
see the Experient.ial Exercise on 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 adjust
to some of the problems Target was facing in Canada. Let’s look at what organizational
behaviour is.
Organizational behaviour ( often abbreviated as OB) is a field of study that looks at
the impact that individuals, groups, and structure have on behaviour with in organiza-
tions for the purpose of applying such knowledge toward improving an organization’s
effectiveness. Because the organizations studied are often business organizations, OB
is often applied lo topics such as job satisfaction, absenteeism, employment turnover,
productivi ty, human performance, and management. OB also examines the following
core topics, 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 negotiation
• 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 voluntary group that comes together to do something
about reviving the downtown area, the parents who sit on
the board of their children’s daycare centre, or even the
members of a lunchtime pickup basketball 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 social unit, composed of a group of
people, that functions on a relatively continuous basis to achieve a common goal or
set of goals. Manufacturing and 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

tvlost fi rms that have introduced
wel lness p rograms have found sig-
ni ficant benefits. A recent joint study
conducted by Sun Life Fi nancial and
the Richard Ivey School of Business
found that in companies wi th well-
ness programs, employees m issed 1.5
to 1.7 fewer days due to absenteeism.
This resu lted in estimated savings of
$251 per employee per year.48 While
many Canadian busines.~es report hav-
ing wellness initiatives, 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 what can organiza tions do to
reduce employee stress? In genera l,
s trategies to reduce stress include
improved employee selection, place-
ment of employees in app ro priate
jobs, realistic goal setting, design ing
jobs with employee needs and skills
in m ind, increased employee involve-
ment, improved organ izat ional
communication, offering employee
sabbaticals, and, as mentioned, estab-
lishment of corporate well ness pro-
grams.
Certa in jobs are more stres.~ful than
others, but ind ividua ls also d iffer in
their response to stressful s ituations.
Vie know, for 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 place-
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 adapt better to high-stress jobs
and perfo rm those jobs more effec-
tively. Sim ilarly, training can increase
an individual’s self-efficacy and thus
lessen job strain.
Individuals perfo rm better when
they have specific and challenging
122
goals and rece ive feedback on how
well they are progressing toward them.
Goals can reduce stres.~ as well as pro-
vide mo tiva tion.so Employees who
are h ighly committed to their goals
and see purpose in the ir jobs experi-
ence Jess stress because they are more
li ke ly to perce ive stressors as chal-
lenges rather than hindrances. Specific
goals that are perceived as atta inable
clar ify performance expectations.
Add it ionally, goa l feedback reduces
uncerta inties as to actual job perfo r-
mance. The result is less employee frus-
tration, role ambiguity, and stress.
Redesign ing jobs to give employ-
ees more responsib ility, more mean-
ingful work, more au tonomy, and
increased feedback can reduce s tress
because these factors give the employee
greater contro l over work activit ies
and Jessen dependence on others. Of
course, not all employees wan t jobs
with increased responsib ility. The right
design for employees with a low need
for growth migh t be less responsibility
and increased specialization. If individ-
uals prefer structure and routine, more
structured jobs should a lso reduce
uncertainties and stres.~ levels.
Role stress is detrimental to a large
extent because employees feel uncertain
about goals, expectations, how they will
be evaluated, and the like. By giving
employees a vo ice in the decisions that
d irectly affect thei r job performance,
management can increase employee
contro l and reduce ro le stress. So
managers should consider increasing
employee involvement in decision mak-
ing because evidence clearly shows that
increases in employee empowerment
reduce psychological strain_s1
Increasing formal organiza tional
communication wi th em ployees
reduces uncertainty by lessening role
ambigu ity and role confl ict. Given
the importance that percep tions play
,n moderat ing the stress-response
relationship, management can a lso
use effective commun icat ion as a
means to shape employee percep-
tions. Remember that wha t employ-
ees categorize as demands, th reats,
or o pportun it ies at wo rk are merely
in terpretations, and those in terpreta-
tions can be affected by the symbols
and act ions communicated by man-
agement.
Some employees need an occa-
sional escape from the frenetic pace
of their work. In recent years, compa-
nies such as American Express, Intel,
General Mills, Microsoft, Morn ingstar,
DreamWorks Anima tion, and Adobe
Systems have begun to provide
extended voluntary leaves. 52 These
sabbaticals-ranging in length from a
few weeks to several months-allow
employees to travel, re lax, or pur-
sue personal pro jects tha t consume
time beyond normal vacation weeks.
Proponents say that these sabbaticals
can revive and rejuvenate employees
who might be headed for burnout.
Our final suggestion is to offer
organiza tionally supported wellness
programs. These typ ically p rovide
workshops to help people qu it smok-
ing. control alcohol use, Jose weigh t,
eat better, and d eve lo p a regular
exercise program; they focus on the
employee’s total phys ica l and men-
tal condition.53 A meta-analysis of 36
programs des igned to reduce stress
(including wellness programs) showed
that in terventions to help employees
reframe s tressful situa tions and use
active coping strategies appreciably
reduced stress Jevels.5 4 tvlost wellness
programs a~sume that employees need
to take personal responsibil ity for their
physical and men tal health and tha t
the organization is merely a means to
that end. The inset Toward Less Stressful
\¥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
work 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 & Stroke Fou ndat ion has
created a helpfu l brochure: http:/ /
www.heartandstroke.ca/-/media/
pdf-file.s/canada/health-information-
cata logu el e n-stress- test-v3-0.
ashx. The site also offers tips on
reducing stress. You can also take a
work-lffe balance quiz at the Canadian
Mental Health 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 VING 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
did 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 motivating 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 equity theory.
f) Apply the predictions of self-determination theory to intrinsic and extrinsic rewards.
G Discuss the ethics behind motivation theories.
0 Summarize 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 manipulating employees when they link rewards to productivity?
\ 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 think 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.
intrinsic 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 topics in organizational behav-
iour (OB).2 A 2013 Gallup poll suggests that employees are no t motivated. Seventy
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 said they waste between 30 and 60 minutes
each day. How? Surfing the Internet came in first with 26 percent of respondents
(Google, Facebook, and Linkedln were the most popular time distractors); “too many
meetings/conference calls and dealing with annoying co-workers tied for second place
with 2401o each. “4
Motivation is the process that accounts for an individual’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 element 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. This measures how long a person can maintain effort. Motivated
individuals stay with a task long enough to achieve their goal.
Many people incorrectly view motivation as a personal trait- something some peo-
ple have and others don’t. Along these lines, Douglas McGregor proposed two distinct
views of human beings. Theory X, which is basically negative, suggests that employees
dislike work, will auempt to avoid it, and must be coerced, controlled, or threatened
with punishment to achieve goals. Theory 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 committed 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 machine 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 minutes. It’s no t necessarily you- it’s the situation. So as
we analyze the concept of motivation, keep in mind that the level of motivation varies
both among individuals and within individuals at different times.
You should also rea lize that what motivates people will also vary among individu-
als and situations. Motivation theoris ts talk abou t intrinsic motivators and extrinsic
motivators. Extrinsic motivators come from outside the person and include such things
as pay, bonuses, and other 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
individual 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. But if you have a love-hate relationship with your
brother, you may insis t that he buy you lunch for helping out. Lunch would then be an

Chapter 4 Theories of Motivation 127
exlrinsic motivator- something that came from ouLSide yourself and motivated you lo
do the task. Later in the chapler, we review Lhe evidence regarding the significance of
exlrinsic vs. inlrinsic rewards, and also examine how lo increase intrinsic motivation.
Meanwhile, you might consider whether you can motivale yourself th rough self-Lalk,
an idea considered in Focus 011 Research.
FOCUS ~isEARCH
Talking to Yourself Can Be a Powerfu l Self-Motivator
How does internal d ialogue affect our motivat ion? In the children’s book The Uttle
Engine That Could, the title character says, ” I think I can, I think I can,” motivating itself
to do the job through positive self-talk. In a 201 O study, researchers examined 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 themselves they would.” Then they were asked to complete some
puzzles. Subjects who asked themselves whether they would complete 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 themselves a question about performance.
These findings suggest that asking yourself whether you will go to the gym three times
next week will be 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 lypes 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, including 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 crilicized for nol standing up to scienlific review. How-
ever, you should know them because ( 1) Lhey represent a foundation from which

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) practising managers still regularly use these
theories and their terminology in explaining 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 within 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 emotional harm.
• Social. Includes affection, belongingness, acceptance, and friendship.
• Esteem. Includes internal esteem factors such as self-respect, autonomy, and
achievement; and external esteem factors such as status, recognition, and
attention.
• Selfacuialization. Includes growth, achieving one’s potential, and self-fulfillment.
This is the drive to become what one is capable of becoming.
Recently, a sixth need has been proposed as the highest level- intrinsic values-
which is said to have originated from Maslow, but it has yet to gain 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 moving up the steps of the hierarchy. 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 hierarchy 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. Physiological 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-standing wide recognition, particularly among
practising managers. It’s intuitively logical and easy to understand, even though little
research supports the theory. Maslow himself provided no empirical evidence, and
some research has val idated it. 13 Unfortunately, however, mos t research does not,
especially when the theory is applied to diverse cultures, 14 with the possible exception
of physiological needs. 15 But old theories, especially intui tively logical ones, die hard.
It is thus important to be aware of the prevailing public acceptance of the hierarchy
\vhen discussing 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, situations in
which they felt exceptionally good or bad about their jobs. The replies people gave when
they felt good about their jobs significantly differed from when they felt bad, which
led Herzberg to his 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.
situations. On the other hand, dissatisfied respondents tended to cite extrinsic factors,
such as company policy and administration, supervision, interpersonal relations, and
work condi tions.
The data suggest that the opposite of satisfaction is no t dissatisfaction, as was tra-
ditionally believed. Removing dissatisfying characteristics from a job does not neces-
sarily make the job satisfying. As illustrated in Exhibit 4-3, Herzberg proposed a dual
EXHIBIT 4-2 Comparison of Satisfiers and Dissatisfiers
Factors characterizing 1844 events
on the job that
led to extreme dissatisfaction
Company
policy ond
administration Supervision
Relationship with supervisor
Worlc conditions
50% 40
Solory
Relationship with 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
31
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 factors Fact0Vhy do so1ne
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 of differentiating rewards. In either 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 of personal goals set by each salesperson. These inde-
pendent consultants are posing in front of Mary Kay Career Cars, one of 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 Recommendations and Valence
Could rewards obscure making accurate recommendations? Stock analysts make
their living 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 on s tocks, although in a steady market, by 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 drawing that company’s ire. Whal are these risks? They include public
rebuke, professional blackball ing, and exclusion from information. Their valence for
this is – 1. When analysts place a buy rating on a s tock, lhey face no such 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 higher for buy ratings lhan sell ratings, and that is why buy 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 Workplace
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 suggestions 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 chapter’s Case Incident- Wage
Reduction Proposal on page 160 for an 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
goals because il helps identify discrepancies 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 employees 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
Improving Expectancy
Improve the abil ity of the
individual to perform.
• Make sure employees have skills
for the task.
• Provide training.
• Assign reasonable tasks and goals.
Improving Instru 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.

lheir progress differently depending on how close they are to
goal accomplishment. When lhey have just begun pursuing
a goal, lhey derive molivalion from believing that lhe goal is
attainable, so they exaggerate their level of progress in order
to slay motivated. However, when they are close to accom-
plishing their goal, they derive motivation from believing a
discrepancy slill exists between where they are currently and
where they would like to be, so they downplay their progress
to da le to signal a need for higher effort.33
Effec tive feedback- where the employee perceives the
appraisa l as fair, the manager as sincere, and the climate as
constructive- can lead lhe employee to respond positively
and become determined to correct his or her performance
deficiencies. 34 Thus, the performance review should be more
like a counsell ing aclivity than a judgment process, allow-
ing the review lo evolve out of the employee’s own self-
evaluation. For more lips on performance feedback, see OB
in Action- Giving More Effeccive Feedback.
Goal-Setting Theory
You have heard the phrase a number of limes: “Just do your
best. That’s all anyone can ask for.” But what does “do your
best• mean? Do we ever know whether we have achieved 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 performance goals
and clear expectations.
-+ Give specific feedback tied to observable
behaviour or measurable resullS.
-+ Channel feedback toward key result areas.
-+ Give feedback as soon as possible.
-+ Give positive feedback for improvement, not
jusl final resullS.
-+ Focus feedback on performance, nol
personalities.
-+ Base feedback on accurale and credible
information. 35
goal-setting theory, proposed by Edwin Locke, reveals the impressive effects of goal
specificity, challenge, and feedback on performance.
Demonstrate the
differences among
goal-setting theory,
self-efficacy theory.
and reinforcement
theory.
The research on goal-selling theory by Locke and his colleague, Professor Gary
Latham at lhe 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 mar1Jways Mutual: A
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.
Recognition 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 well 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 resources
• 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
• Allocating 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, studies 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 careful not lo rigidly
apply Lhe model’s predictions to all teams.62 The model should 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 individual work. Creating “effective” teams in situations where
individuals can do Lhe job better is equivalent 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 organize Lhe key components of
effective teams into three general categories. First are Lhe resources and other contex-
tual in fluences 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 evaluate your own team
experience against Lhis checkl ist to give you some idea of how well your team is func-
tioning, or to understand 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 which asks you
to build a paper tower wi th teammates and Lhen analyze how the team performed.

2 18 Part 2 Striving for Performance
~ OB ~cr10N
Harming Your Team
-+ Refuse to share 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 much on lhe leader and do not cany
oul their responsibi lities.
-+ Fail to follow through on decisions. Teams
do not take action after decision 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 opinion, and
this causes tension.
-+ Fail at conflict resolution. Infighting, put-
downs, and attempts to hurt other members
damage the team.
-+ Form subgroups. The team breaks up into
smaller groups that put 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
leadership, a cl imate of lrust, and a performance evaluation and
reward system that reflects team conlributions.
Adequate Resources
Teams are part of a larger organization system; every work team
relies on resources outside lhe team to sustain itself. A scarcity of
resources directly reduces the abi lity of a team to perform its job
effectively. As one set of researchers concluded, after looking at
13 factors potentially related to team performance, “perhaps one
of the most important characteristics of an effective work group
is lhe support the group receives from the organization.”64 This
support includes technology, adequate staffing, adminislrative
assistance, encouragement, and timely information.
Teams must receive the necessary support from management
and lhe larger organization if they are lo succeed in achieving
their goals.
Leadership and Structure
Leadership plays a crucial role in the development and success
of teams.
Professor Richard Hackman of Harvard University, who is
lhe leading expert on teams, suggests that the role of team leader
involves lhe following:66
• Creating a real team rather than a team in name only
• Setting a clear and meaningful direction for lhe team’s work
• Making 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 organizational 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 management
or from team members lhemselves. In self-managed 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 multiteam 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
Recent research suggests lhat women may make beuer team leaders lhan men, as
Focus on Research shows.
FOCUS ~1sEARCH
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 foundalion of leadership; it allows a team to accept
and commit to the leader’s goals and decisions. Members of
effective teams exhibil trusl in lheir leaders.69 They also trust
one anolher. Interpersonal trust among team members facil i-
tates cooperation, reduces lhe need lo monitor one another’s
behaviour, and bonds individuals through the be) ief that
members won’t take advantage of lhem. Members are more
likely to take risks and expose vulnerabilities when lhey can
lrust others on lheir team. Trust allows a team to accept and
commit lo its leader’s goals and decisions. The overall level
of lrust in a team is important, but the way trust is dispersed
among team members also matters. Trust levels lhat are asym-
melric and imbalanced between team members can mitigate
lhe performance advantages of a high overall level of lrust- in
such cases, coalitions form lhat often undermine the team as a
whole.70 OB in Action- Building Trust shows Lhe dimensions
lhal underl ie the concept of trust. Focus on Diversity examines
how lrust varies across cultures.
··-
~ OB ~c110N
Building Trust
The following aclions, in order of importance,
help build one’s lrustworlhiness.
-+ lntegrity- buill lhrough h onesty and truth-
fulness.
-+ Competence-demonstrated by technical
and interpersonal knowled ge and skills.
-+ Consistency-shown by reliability, predictabil-
ity, and good judgment in handling situations.
-+ Loyalty- one’s will ingness to protect and
stand up for anolher person.
-+ Openness-one’s willingness to sh are ideas
and information freely. 71

220 Part 2 Striving for Performance
How do you develop trust on multicultural 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 conditions in a team envi-
ronment. Also, trust is not unequivocally desirable. For instance, recent research in
Singapore found that, in h igh-trust teams, individuals are less likely to claim and
defend personal ownership of their ideas, but individuals who do still claim personal
ownership are rated as lower contributors by ream members.73 This •punishment” by the
team may reflect resentments that create negative relationships, increased conflicts, and
reduced performance. For additional information on what leaders can do to improve
the cl imate of trust in their organization, see OB on the Edge-1h1st, on pages 240- 245.
Performance Evaluation and Rewards
How do you get team members to be both individually and jointly accountable?
Individual performance evaluations and incentives are not consistent with the develop-
ment of high-performance teams. So in addi tion to evaluating and rewarding employees
for their individual contributions, management should utilize hybrid performance
systems that incorporate an individual member component
to recognize individual contribu tions and a group to rec-
ognize positive team outcomes.74 Some research has found
that when team members did no t trust their colleagues’
ability, honesty, and dependability, they preferred individ-
ual-based rewards rather than team-based rewards. Even
when trust improved over time from working toge ther,
there was still a preference for individual-based rewards,
suggesting that •teams must have a very high level of trust
for members to tru ly embrace group-based pay,”75
Should
individuals he
paiol for their
team””ork or
their individual
performance’?
One additional consideration when deciding whether and how to reward team
members is the effect of pay dispers ion on team performance. Research by Nancy
Langton, your Vancouver-based author, 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 players were paid more simi larly oflen outperformed
learns with highly paid “stars• and lowly paid •scrubs. •77 How teams are slructured and
rewarded is the topic of Focus on Research.
FOCUS ~isEARCH
The Impact of Rewards on Team Functioning
Can competit ive teams learn 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 lilies and personalilies of team members, lhe allocation of roles, diver-
sily, cultural differences, size of the team, and members’ preferences for teamwork. As
you can expect, opinions vary widely aboul the type of members leaders wanl on their
learns. Google tried lo find a formula for bui lding the perfecl learn, as Focus on Research
noles.
Abilities of Members
ll’s lrue thal we occasionally read about an athletic learn of mediocre players who,
because of excellenl coaching, 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 on a learn.
Research reveals insighls into team composition and performance. First, when
solving a complex problem such as re-engineering an assembly line, h igh-abilily
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 build the 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 adaptable to changing situations; lhey can more effec-
tively apply existing knowledge to new problems.
Finally, the abi lity of the 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-ability team.8 1
Exhibit 6-7 identifies some important skills 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
Promotes a positive
team 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 diversity and specific
roles. We demonstrated in Chapter 2 that personality sig-
nificantly influences individual behaviour. This assertion
can also be extended lo team behaviour.
Some dimensions 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 at backing up other team members, and they are also good at sensing when their
support is truly needed. Conscientious teams also have other advantages- one study
found that behavioural tendencies such as organization, achievement orientation, and
endurance were all related to higher levels of team performance.83
Team composition can be based on individual personalities lo good effect. Suppose
an organization needs to create 20 teams of 4 people each and has 40 highly consci-
entious people and 40 who score low on conscientiousness. Would the organization
be beuer off (a) putting all the conscientious people together (forming 10 teams with
the highly conscientious people and 10 teams of members low on conscientiousness)
or (b) “seeding” each team with 2 people who scored high 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 will not work to the peak performance of its highly
conscientious members. Instead, a group normalization dynamic ( or simple resent-
ment) will complicate interactions and force the highly conscientious members to lower
their expectations, thus reducing the group’s performance_B4
What about the other 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 communicate better with one another and throw
out more ideas, which makes teams composed of open people more creative and
innovative.85 Task conflict 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 stability are
able to handle conflict and leverage it to improve performance. The minimum level
of team member agreeableness matters, loo: Teams do worse when they have one or
more highly disagreeable 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 indicated 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
personality 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 should be selected to ensure all the various
roles are filled. A study of778 major league baseball teams over a 21-year period high-
lights 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, pitchers 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 pre 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 middle 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 multiple studies 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 problems, but also the ways people respond to conflict
and manage the process once conflicts arise.
Research shows that whi le people may choose among the strategies, they have an
underlying disposition to handle conflicts in certain 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 child. Co-workers
who are having a conflict over setting deadlines to complete 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 Individuals 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 identify the problem and
reso lve it through open discussion.

Chapter 9 Conflict and Negotiation 3 19
.. _
~ OB ~cr10N
Choosing Strategies to Deal with Conflicts
Forcing
-+ In emergencies
-+ On important but unpopular issues
-+ On vital issues when you know you are right
-+ Against people who take advantage of noncompeti-
tive behaviour
Problem solving
-+ If both sets of concerns are too important for
compromise
-+ To merge different perspectives
-+ To gain commitment through a consensus
-+ To mend a relationship
Avoiding
-+ When an issue is trivial
-+ When your concerns won’t be met
-+ When potential disruption out”1eighs the benefits
of resolution
-+ To let people cool down and regain perspective
Yielding
-+ When you fi nd you are wrong
-+ To show your reasonableness
-+ When issues are more important to others than
yourself
-+ To build social credits for later issues
-+ When harmony and stability are especially
important
Compromising
-+ When goals are important but not worth more
assertive approaches
-+ When opponents are committed to mutually
exclusive goals
-+ To achieve temporary settlements to complex
issues
-+ To arrive at expedient solutions under lime
pressure26
• Developing overarching goals. Creating a shared goal that requires both parties
to work together, and motivates them to do so.
• Smoothing. Playing down differences while emphasizing common interests
with the other party.
• Compromising. Agreeing with the other party that each will give up something
of value to reach an accord.
• Avoiding. Withdrawing from or suppressing the conflict.
The choice of technique may depend on how serious the issue is to you, whether you
take a win- win or a win-lose approach, and your preferred confl ict management style.
When the conflict is specifically work-rela ted, additional techniques might be used:
• Expansion of resources. The scarcity of a resource- say, money, promotion
opportunities, office space- can create conflict. Expansion of the resource can
create a win- win solution. (Money is often the issue in pro sports strikes, as
Point/Counterpoint on page 338 shows.)
• Authoritative comma.nd. Management can use its formal authority to resolve the
conflict and then communicate its desires to the parties involved.
• Altering the h1u11an variable. Behavioural change techniques such as human
relations training can alter attitudes and behaviours that cause confl ict.

320 Part 3 Interacting Effectively
~ OB ~cr10N
Handling Personality Conflicts
Tips for employees having a personality conflict
-+ Communicate directly with the other person
to resolve the perceived conflict ( emphasize
problem solving and common objectives, not
personalities).
-+ 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 sides in someone else’s personal-
ity conflict.
-+ Suggest the 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 employees are having a
personality confl ict
-+ Investigate and document conflict.
-+ If appropriate, take corrective action ( e.g.,
feedback or behaviour shaping).
-+ If necessary, attempt informal dispute
resolution.
-+ Refer difficult conflicts lo human resource
specialists or hired 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
coordinating 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, including the following:29
• Misunderstandings based on age, race, or cultural differences
• Intolerance, prejudice, discrimination, or bigotry
• Perceived inequities
• Misunderstandings, rumours, or falsehoods abou t an indi-
vidual or group
• Blaming for mistakes or mishaps (finger-pointing)
Personality 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
ideal solution would 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 workplace.
Conflict Outcomes
The action- reaction interplay 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 curiosity among group members, provides the
medium for problems 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 University in Hong Kong suggests three desired outcomes
for conflict:31
• Agreement. Equitable and fair agreements are the best outcome. If agreement
means that one party feels exploited or defeated, th is will likely 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 FINDINGS: The Constructive
Effects of Conflict
Chapter 9 Conflict and Negotiation 321
Research studies in diverse settings confirm that conflict can be functional
and improve productivity. Team members with greater differences in work styles and
experience also tend to share more information with one another.32
These observations lead us to predict benefits to organizations from the increasing
cultural divers ity of the workforce. That is what the evidence indicates, under most
conditions. Heterogeneity among group and organization members can increase cre-
ativity, improve the quality of decisions, 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 diverse groups produced more effective and more feasible
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-
munication moderate how well groups can deal with internal conflict. Al an individual
level, both a person’s personality (agreeableness) and his or her level of social support
influence that person’s response lo conflict. Agreeable employees and those with lower
levels of social support respond to confl ict more nega tively.34
Open communication is important to resolving confl ict. Group members who
discuss differences of opinion openly and are prepared to manage confl ict when it
arises resolve conflicts successfully.35 Group members \V ith cooperative confl ict styles
and a strong underlying identification to the overall 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 iscontent,
which 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 subordination 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 When 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 organizations: Labour bargains with management;
managers negotiate with employees, peers, and senior management; salespeople 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 which 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 negotia-
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-
ship and behaving ethically will be just as imponant as achieving an immediate outcome
of bargaining. 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 placed on lhe bargaining table for discussion. Positions are
the individual’s stand on the issues. For instance, salary may be an issue for discussion.
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.

Chapter 9 Conflict and Negotiation 32 3
might want a six-figure salary is that you are trying to buy a house in Vancouver, and that
salary is your only hope of being ab le to make mortgage payments.
Negotiators who recognize the underlying interests of themselves and the other party
may have more flexibility in achieving a resolution. For instance, in the example jus t
given, an employer who offers you a mortgage at a lower rate than the bank does, or
who provides you with an interest-free loan that can be used against the mortgage, may
be able to address your underlying interests wi thout actually meeting your salary posi-
tion. You may be satisfied with th is alternative, if you understand what your interest is.
Below we discuss bargaining strategies and how to negotiate.
Bargaining Strategies
There are two general approaches to negotiation: distributive bargaining and integrative
bargaining.43 These are compared in Exhibit 9-3.
Distributive Bargaining
Distributive bargaining is a negotiating strategy that
operates under zero-sum (win- lose) conditions. That is,
any gain I make is at your expense, and vice versa. You see
a used car advertised for sale online. It appears to be just
what you have been looking to buy. You go out lo see the
car. H’s great, and you want it. The owner tells you the ask-
ing price. You don’t want to pay that much. The two of you
then negotiate over the price. Every dollar you can get the
seller to cut from the car’s price is a dollar you save, and
Should you try
to win at any
cost ,,vhen you
bargain’?
every dollar more the seller can get from you comes at your expense. So the essence of
dis tributive bargaining is negotiating over who gets what share of a fixed pie. By fixed
pie, we mean a set amount of goods or seNices to be divided up. When the pie is fixed,
or the parties bel ieve it is, they tend to bargain distributively.
A party engaged in distributive bargaining 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 persuading your opponent of the impossibi lity of reaching his or her target point
and the advisabi lity of accepting a settlement near yours; arguing that your target is fa ir,
whi le your opponent’s is not; and attempting to get your opponent to feel emotionally
generous toward you and thus accept an outcome close lo your target point.
When engaged in distributive bargaining, one of the best things you can do is to
make the first offer, and lo make it an aggressive one. Making the first offer shows
EXHIBIT 9-3 Distributive vs. Integrative Bargaining
Bargaining
Characteristic
Goal
Motivation
Focus
Interests
Information sharing
Distributive
Bargaining
Get as much of t he pie as
possible
Win-lose
Posit ions (” I can’t go
beyond t his point on this
issue.” )
Opposed
Low (Sharing information
will on ly allow other party
to take advantage)
Duration of relationship Short term
Integrative
Bargaining
Expand the pie so that both
parties are satisfied
W in-w in
Interests (“Can you explain w hy
this issue is so important t o you?”)
Congruent
High (Sharing information 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

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.
People 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 different
norms for what demonstrates mutual
respect; however, many provinces now
require organ izations to develop poli-
cies regard ing workplace bullying and
respectful workplace practices.
Some behaviour goes beyond
incivil ity to workplace bu llying. The
Workplace Bullying Insti tute defines
workplace bullying as
repeated, health-harming mis-
treatment of one or more persons
(the targets) by one or more per-
petrators. It ,s abusive conduct
that is:
• Threa ten ing, humil iating, or
intimidating
• 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
bullying in Canada. The Workp lace
Bullying Insti tute conducts the larg-
est scien tific study of bullying in the
United States, 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 significantly 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 (57
percent vs. 43 percent) .
• Overall, 60 percent of bullying tar-
gets are women.
The evidence suggests that rudeness,
bullying, and violence are all on the
rise. The behaviours are harmful in the
workplace.7 The victims of these nega-
t ive behaviours are not the only ones
who suffer, however. Witnesses to bul-
lying also suffer.8
Not all 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
•••








































• •••••••••••••••
FACTBOX
What happens when employees
experience rudeness in the work-
place?
• 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 avoiding the
offender, and
• 78% said their commitment to
the organization declined .6
….. –· ……. –·~—–.-.
acknowledge that there is a “fine line”
between strong 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 employer 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 beginning 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 felt
toward his former employer. In April
2014, he took a shotgun and opened
fire at his 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 financial 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
•an absolutely super nice guy. But me,
you, anyone else 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
originate 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) study, 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 bul-
lied. Robinson concluded that because
ostracism is less visible, it’s harder to
fighL ·victims 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 employers 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 organization. Jeffrey Pfeffer, a
professor of organizational behaviour
at the Graduate School of Business
at Stanford Un iversity, notes that
many companies don’t really value
their employees: •Most managers, if
they’re being honest with themselves,
will admit it: When they look at 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-
nization. The real ization that they are
simply costs and not valued members
of an organization 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 restructuring 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 strike back.’23
Smith’s work supports the findings
of studies that repo rt that the most
common cause of anger and bullying
is the actions of supervisors or 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 discipl 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
implici t or explici t promises may not
be necessary to affect employee inten-
tions to s tay with 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 employees
expect decent pay, deve lopmental
opportunities, and support (whether
or not employers promise to deliver
such); and when th ey don’ t receive
those th ings, the ir behaviour toward
the organization 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
frustration in terms of a b reakdown
of the psychological contract formed
between employees and employers.
An employer and employee begin
to develop psychological contracts as
they are first introduced to each other
in the h iring process. These contracts
continue over time 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
given. For instance, when an employee
is con tinually asked to work late and/
or be ava ilable at all hours through
pagers and email, the employee may
assume tha t do ing so will result in
greater rewa rds or fas ter promotion
down the line. The em ploye r may
have had no such intention, and may
even be th inking th at the employee
should be grateful simply to have a
job. Later, when the employee does not
get expected (though never promised)
rewards, he or she is disappoin ted.
Sandra Robinson, an organizational
behaviour p rofessor at the Sauder
School of Busines.~ at the University of
British Columbia, and her colleagues
have found that when a psychologi-
ca l contract is violated (perceptually
or actually), the relationship between
the em ployee and the employer is
damaged. The result can be a Joss of
t rust. 27 The breakdown in trust can
cause employees to be less ready to
accept decis ions or obey rules. The ero-
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 subtle and
not-so-subtle behaviours tha t affect
the way work gets done-or prevents
work from getting done. A recent study
sugges ts th at perceptions of th e psy-
chological contract vary by culture. 28
The Toxic
Organization
Pfeffer suggests that companies have
become ‘toxic places to work. •3o He
notes that companies, particularly in
Silicon Valley, ask their employees to
sign contracts on the first 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 also 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 find
yourself in that situation.
Wha t does it mean to be a toxic
organization? The inset \,Vfrat Does a
Toxic Organization Looll Like? describes
one. The late professor Peter Frost
of the Sauder School of Business at
the Univers ity of Brit ish Columbia
noted that there will always be pain in
organizations, but that sometimes it
becomes so intense or prolonged that
conditions within th e organiza 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 organiza tions to be
toxic? Like Pfeffer, Robinson and col-
leagues identify a number of factors.
Downsizing and organizational change
are two main factors, particularly in
recen t years. Sometimes organizations
experience unexpected evenL~-such a~
the sudden death of a key manager, an
unwise move by sen ior management,
strong competition from a start-up
company-that lead to toxicity. Other
organ iza tions are toxic th roughout
their system due to policies and prac-
tices that create d istress. Such factors
as unreasonable stretch goals or per-
formance 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 are control freak~ or are 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 are
sometimes subtle: a hostile work envi-
ronment and the tendency to do only
enough work to get by. 34
348
Those who feel chronic anger in the
wo rkplace are more likely to report
“feelings of betrayal by the organiza-
t ion, decreased feelings of loyalty, a
decreased sense that respondent values
and the organization’s values are simi-
lar, a decrea~ed sense that the employer
t reated the respondent with dign ity
and respect, and a decreased sense that
employers had fulfilled promises made
to respondents. •35 So do these feel-
ings make a difference? Apparently so.
Researchers have found that those who
felt angry wi th their employers 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 do
their job.’ 36 All of these act ions tend
to decrease the productivity possible
in the workplace.
It’s not just those who work for an
organization 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,
provincia l government consumer-
help agencies and media ombudsmen
repo rt a lengthening l itany of com-
plaints about contractors, car dealers,
•• •







• ••• ••••••• ••••••
FACTBOX
: The effects of incivility on the
workplace are high: • •

























• 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 companies, air-
lines and departmen t sto res.’ 38 Th is
suggests that customers and cl ients
may well be feeling the impact of inter-
nal workplace dynamics.
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-romanticized
concept. The big issue is not that
employees need to be concerned
about their mamers. Rather, employers
should be paying better wages.
The dynamics in t he 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 student mistreatment. Viewers
were asked to ·avoid putting students
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 video wou ld not have been made
JO years ago. But the cu rrent genera-
tion of students is demanding more
respect and it has less tolerance for
being exposed to bullying behaviour.
This may tum out to be a good th ing.4 0
Legislation to Prevent
Bullying
The Canadian Cri minal Code has no
bullying offence, although depend-
ing on the ci rcumstance, other charges
could be made, such as cr im inal
harassment, uttering threa ts, assaul t,
and sexual assault. On a p rov in-
cial level, only some provinces have
adopted legisla tion d irected at bully-
ing. O thers are still working out poten-
tial approaches.4 1 But some aspects of
bullying could be dealt wi th in some
provinces through existing provincial
vio lence and harassment legislation.
For instance, in 2012 WorkSafeBC
s tarted to accept mental d iso rder
cla ims that we re the results of •a
cumulative series of sign ificant work-
related stresso rs. • That was a major
The Golden Rule “Do unto others
as you would have others 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 Columbia. Previously it had
only processed cla ims for 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. While
the majority of claims were for trau-
matic incidents, about 30 percent were
for workplace stress. ‘Forty-five to 50
people are applying 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 reminds 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 ismis-
siveness ….. 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 would 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 Occupational
Health and Safety, “Bul lying in the
Workplace,• www.ccohs.ca/oshan-
swers/psychosociaVbullying .html.
349

350
Organizational Culture
PA RT 4
SHAR ING THE
ORGAN IZATIONA L VI SION
How
can Hyatt Hotels
effectively manage a
global corporation with multiple
hotel chains and thousands of
employees? A strong
organizational culture
is part of the
answer.
O Describe the common characteristics of organizational culture.
f) Compare the functional and dysfunctional effects of organizational culture on people
and the organization.
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 organizational culture 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 culture do?
\ I I ‘ , : ;, :
,V,
, ‘
‘l’IIE BIG IDEA
• Is culture the same as rules?
• What kind of organizational culture would 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.
organizational 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 McGill University and one of the world’s leading
management experts, was asked to compare organizational s tructure and corporate
culture, he said, ·culture is the soul of the organiza 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 distinguishes the organization from other organizations.3 Mintzberg’s culture
metaphor provides a clear image of how to th ink about culture. Culture provides
stability to an organization and gives employees a clear understanding of “the way
things are done around here.• Culture sets the tone for how an organization operates
and how individuals within the organization interact. Think of the different impres-
sions you have when a receptionist tells you that •Ms. Dettweiler• will be available
shortly, while 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 which employees are encouraged to
be innovative and take risks
• Attention to detail. The degree to which employees are expected to work with
precision, analysis, and attention to detail
• Ouccome orientation. The degree to which management focuses on resu lts, or
outcomes, rather than on the techniques and processes used to achieve these
outcomes
• People orient.ation. The degree to which management decisions take into con-
sideration the effect of outcomes on people within the organization
• 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 maintain ing
the status quo in contrast to growth
Each of these characteris tics exists on a continuum from low to high.
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 understanding that members have about the organization, how
things are done in it, and the way members are supposed to behave. Exhibit 10-1 dem-
onstrates how these characteristics can be mixed to create highly diverse organizations.
Organizational characteristics are even reflected in your classroom, as the Experiential
Exercise on page 376 shows.
Culture Is a Descriptive Term
If you have ever been in an organization (certainly you have been in many!), you
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 initiative? In contrast, job satisfaction seeks to measure

Chapter 1 O Organizational Culture 3 53
EXHIBIT 10-1 Contrasting Organizational Cultures
Organization 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 feel about the organization’s expectations, reward practices, and the like.
Although the two terms have overlapping characteristics, keep in mind that organiza-
tional cu/cure is descriptive, whereas job satisfaction, for example, is evaluative.
Do Organizations Have Uniform Cultures?
Organiza tional culture represents a perception of the organization that employees
hold in common. Statements about organizational cullure are valid only if individuals
with different backgrounds or al different hierarchical levels describe their organiza-
tion’s cultu re in similar lerms.5 The purchasing department can have a subculture
that includes the core values of the dominant culture, such as aggress iveness, p lus
additional values unique to members of tha t department, such as risk-taking. The
dominant culture expresses the core values a majority of members share and 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 0-4 Entry Socialization Options
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 value rule following and order. Programs that are informal,
individual , variable, and random while 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 levels of institutional practices encourage
person- organization fi t and h igh levels of commi tment, whereas individual practices
produce more role innovation.62
The three-part entry social ization process is complete when
• The new employee has become comfortable w i th the organization and his or
her job
• The new employee has internalized the norms of the organization and the
work group, and understands and accepts these norms
• The new employee 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 employee understands how he or she will be evaluated 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 job ‘well done•
As Exhib it 10 -5 shows, successful metamorphosis should have a posi live impact on
the new employee’s productivity and commitment to the organiza tion. It should also
reduce the tendency lo leave the organization (turnover).
Researchers examine how employee alti tudes change during social ization by measur-
ing those attitudes at several points over the first few months. Several studies have now
documented pauerns of “honeymoons• and “hangovers• for new workers, showing
that the period of initial adjustment is often marked by decreases in job satisfaction as
ideal ized hopes come into contact with the real ity of organizational l ife.63 Newcomers

366 Part 4 Sharing the Organizational Vision
EXHIBIT 10-S How Organizational Cultures Have an Impact on Employee
Performance and Satisfaction
Objective factors
Strength
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 and co-workers
is gradually withdrawn 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 commitment and satisfaction.65 It may be Lhat the initial adjust-
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 onboarding/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’
Culture is Lransmiued to employees in a number of forms,
lhe most potenl being stories, rituals, material symbols,
and language. These forms enable both employees and
lhe outside world lo read lhe organization’s culture. From
Concepts to Skills on pages 379- 381 offers additional 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 Montreal (BMO) decided several years ago to become
a leader in customer service in the banking industry, it needed a way of communicat-
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, employees know they need to pay attention to interactions so that
they can share the stories. Susan Brown, a senior vice-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 evolution of developing a customer-
centric culture.”67
Stories circulate through many organizations, anchoring the present in the past and
legitimating current practices. They typically include narratives about the organization’s
founders, ru le breaking, rags-Lo-riches successes, workforce reductions, relocations of
employees, reactions to past mistakes, and organizational 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 organization; wha t goals are most important; and/or which people are important
vs. which are expendable.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 ritual
that bonds Walman employees and reinforces Walton’s belief in the importance of
his employees 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 aircraft are a few examples of mater ial symbols.
O thers include the size of offices, the elegance 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 material symbols 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, participative, individualistic, social).
Some cultures are known for the perks in their environments, such as Google’s
bocce courts, SAS’s free health care clinic, and Microsoft’s organic spa. Al Bolton,
Ontario-based Husky Injection Molding Systems, a more egal itarian culture is favoured.
Employees and management share the parking lot, d ining 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 equipment, offices, key individuals, suppliers, customers, or products that
rela te to the business. New employees may al first be overwhelmed by acronyms and
jargon that, once assimila ted, act as a common denominator 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 symbols 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 Organizational Vision
Baidu, a Chinese web services firm, describes its culture as “simple” – meaning direct, open, and
uncomplicated-and “reliable” – meaning trusting the competence of colleagues. Baidu’s casual work-
places reflect this trust with lounges, gyms, yoga studios, and dome-shaped nap rooms employees
may use at any time.
given culture or subculture. Baristas al Starbucks call drinks short, tall, grande, and venti
instead of small, medium, large, and extra-large, and they know the difference between
a half-decaf double tall almond skinny mocha and an iced short schizo skinny hazel-
nut cappuccino with wings. Students and employees al Grant MacEwan College are
informed by the philosophy of the college’s namesake. Dr. Grant MacEwan, historian,
writer, politician, and environmentalist, was never a formal part of the management
of the organization. However, many phrases from his writing and creed have fou nd
their way into forma l college publ ications and calendars, as well as informal commu-
nications, including his most well known, “I have tried to leave things in the vineyard
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 change and new expectations for employees. Why has Hyatt been so successful
in creating an organizational culture that enables change’
Changing an organization’s culture is difficult and requires tha t many aspects of the
organization change al the same time, especially the reward s tructure. Culture is such
a challenge lo change because il often represents the established mindset of employees
and managers.

Chapter 1 O Organizational Culture 369
John Ko tler, professor of leadership al Haivard Business School, has created a
detailed approach lo implementing change, which we discuss in Chapter 14.76 Efforts
directed at changing organizational 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 cultural change is most likely 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 might be a surpris ing
financial setback, the loss of a major customer, or a dramatic technological
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 chief executive, but also
might need to include all senior management positions.
• Young and small organization. The younger the organization, the less entrenched
its culture will be. It’s a lso easier for management to communicate 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
cultures are more open to change than strong ones.
Next we discuss two specific kinds of cultural change: creating an ethical organiza-
tional culture and creating a positive organizational culture.
Creating an Ethical Organizational Culture
Despite differences across industries and cultures, ethical organizational cultures share
some common values and processes.77 Therefore, managers can create a more ethical
culture 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, but eveiyone can be a role model
to positively in fluence the ethical atmosphere. Senior managers who take the
ethical high road send a positive message.
• Communicate ethical expectati.ons. Whenever you seive in a leadership capacity,
minimize ethical ambiguities by sharing a code of ethics that s tates the organi-
za tion’s primaiy values 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
permissible, and to address possible ethical dilemmas.
• Visibly reward ethical acts and punish unethical ones. Evaluate subordinates on
how their decisions measured against the organization’s code of ethics. Review
the means taken to achieve goals, as well as the ends themselves. Visibly
reward those who act ethically and conspicuously punish those who do not.
• Provide protective mechanisms. Provide formal mechanisms so eveiyone can
discuss ethical dilemmas and report uneth ical behaviour without fear of repri-
mand. These might include identifying ethics counsellors, ombudspersons, or
eth ics officers for liaison ro les.
The work of setting 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 ethical
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
• Participative
• 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 with 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.
This is essentially synonymous with the Ohio State dimension of consid-
eration. This behaviour is often recommended when individuals are under
stress, or otherwise show that they need to be supported.
• The participative leader consults 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 ighly motivated. ll would be less effective with less
capable individuals, or those who are highly stressed from overwork.
As Exhib it 11-3 illustrates, path-goal theory proposes two types of contingency vari-
ables that affect the leadership 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 fluenced 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-Goal 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 leadership can lead to higher levels of emotional exhaus-
tion for subordinates who are low in conscientiousness and emotional stability.22 This
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 that leaders who set goals enable conscientious followers to achieve higher
performance but may cause s tress for employees who are low in conscientiousness.
Like SLT, path-goal theory has intuitive appeal, especially from a goal attainment
perspective. Also like SLT, the theory can be only cautiously adop ted for application,
but il is a useful framework in examining the important role of leadership.23
Case Incident- Leadership by Algorithm on pages 410- 411 explores ways lo learn how
lo adapt your leadership style 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 leadership theories we have d iscussed so far ignore the importance of the leader
as a communicator who inspires others to act beyond their immediate self-in terests. In
this section, we present two contemporary leadership theories with a common theme.
They view leaders as individuals who inspire followers through their words, ideas, and
behaviours. These theories are charismatic leadership and transformational leadership.
Charismatic Leadership
The following individuals 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) Environmental Solutions; Pierre Trudeau, the late
prime minister; Michaelle Jean, former Governor General; and Craig Kielburger, founder
of WE Charily (formerly Free the Children). 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 quality of an individual personality, by virtue of which he or she is set apart from
ordinary people and treated as endowed with supernatura l, superhuman, or al least
specifica lly exceptional powers or qualities. These 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 leadership theo ry, followers make attributions of
heroic or extraordinary leadership abilities when they observe certain behaviours, and tend
to give these leaders power.26 A number of studies have 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 extraordinary behaviours (see Exhibit 11-4 ).27 Recent research in Greece
suggested that charismatic leadership increases follower organizational identification

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 on 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 leadership 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 Charismatic Leaders Influence Followers
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 goal by linking the present with
a beuer future for the organization. Desirable visions fi t the limes and circumstances
and reflect the uniqueness of the organization. Thus, followers are inspired nol only by
how passionately the leader communicates-there musl be an underlying vision that
appeals to followers as well.
A vision needs an accompanying vis ion statement, a forma l articu lation of an
organization’s vision or mission. Charismatic leaders may use vision statements to
imprint on followers an overarching goal and purpose. These leaders also set a tone of
cooperation and mutual support. They build 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 FINDINGS: Charismatic Leadership
~ 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 susceptible 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 leading 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 listening skills; and make eye contact.32
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
personal belonging at \vork when they had charismatic leaders, and increased their
will ingness to engage in helping and compliance-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 0O
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amed Chris .
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F A C E O F F
Organizations that encourage spir-
ituality as part of their culture are
bound to have more positive bot-
tom lines, because everyone in the
organization will act more ethically.
Criticisms of
Spirituality
Critics of organizations that embrace
spiritual values have focused on three
issues. First is the question of scientific
foundation. What, really, is workplace
spi rituality? Is it just a new manage-
ment buzzword? Second, are sp iritual
organ izations legitimate? Specifically,
do o rgan izations have the right to
claim spiritual values? Th ird is the
question of economics: Are spiritual-
ity and profits compatible?
First, as you might imagine, com-
paratively little research exisL~ on work-
place spirituality. Spiritual ity has been
defi ned so b roadly in some sources
tha t practices from job rota tion to
corporate retreats at med itation cen-
tres have been iden tified as spiritual.
Questions need to be answered before
the concept ga ins full 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 employees. This cri ticism
is undoubtedly valid when spi ritual-
ity is defined as bringing religion and
God into the wo rkplace.33 However,
An emphasis on s pirituality at work
distracts individuals from focusing
on the demands of their jobs, and
makes some people uncomfort-
able. It should 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 and
p rofi ts are compatible objectives is
a relevant concern for managers and
investo rs in bus iness. The evidence,
although lim ited, indicates that they
are. In one study, o rgan izations that
provided thei r employees with oppor-
tunities for spi ritual development out-
performed those that d id not.34 Other
stud ies repo rted th at s piritua lity in
organizations was positively related to
creativity, employee satisfaction, team
performance, and organizational com-
mitment 35
The cynic 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 organ ization is
good for th e bottom line. WestJet is
strongly committed to providing 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 airline indus-
try, the company consistently has the
lowest labour costs per m iles flown of
any major a irline, and it has proven
itself to be the most consistently profi t-
able airline 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 or CEOs that have encour-
aged more openness toward
spirituality in their organizations.
What, if any, commonalities exist
in these organizations?
YOUR PERSPECTIVE
1. Have you ever tried meditation? If
yes, did it help you achieve more
clarity in your thinking? If not, What
are your views on this practice?
2. What does spirituality mean to
you?
WANT TO KNOW MORE?
Three top-selling books by Canadian
authors, based on international sales •
are on spirituality: 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 ING 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
fitness and nutrition
coaching company w ith
a flattened organizat ional
structure. How has this
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 behavioural 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

458 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 specialization The degree
to which tasks in the organization are
subdivided into separate jobs.
What Is Organizational Structure?
An organizational structure defines how job tasks are formally divided, grouped, and
coordinated. Managers should address seven key elements when they design their orga-
nization’s structure: work specialization, departmental ization, chain of command, span
of control, centralization and decentral ization, formal ization, and boundary spanning.3
Exhibit 13-1 presents each element as the answer to an important structural question,
and the following sections describe them.
Work Specialization
Work specialization, or division of labour, describes the degree to which tasks in the
organization are subdivided into separate jobs. The essence of work specialization is
that, rather than an entire job being completed by one individual, 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, putting away tools and equipment 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 highly sophisticated and
complex operations. For example, could Montreal -based
v\lhat happens
when a person
perfor1ns the
same task over
and over again·?
Bombardier produce even one Canadian regional jet a year if one person had to build
the entire plane alone? Not likely! Finally, work specialization increases efficiency and
productivity by encouraging the creation of special inventions and machinery.
However, specialization can lead to boredom, fa tigue, stress, low productivity, poor
quality, increased absenteeism, and high turnover, so il is not always the best way to
organize employees. Giving employees a variety of activities to do, allowing them to do
a whole and complete job, and putting them into teams with interchangeable ski lls can
resu lt in significantly higher output and increased employee satisfaction.
Most managers today recognize that specialization provides economies in certain
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 aids medical special-
ists working in hospitals. Wherever job roles can be broken down into specific tasks or
projects, specialization 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

Chapt er 13 Organizational Structure 459
Work is specialized at the Russian 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 recenl years has been loward wider spans of control. 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, organizations have been investing heavily in employee lraining. 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 Decentralization
Centralization refers lo the degree to which decision making is concenlrated at a single
poinl in the organizalion. In centralized organizations, lop managers make all the deci-
sions, and lower-level managers merely carry out their directives. In organizalions al the
other extreme, decentra lized decision making is pushed down lo the managers closest
to the action or to work groups. The concept of centralization includes only formal
aulhority- that is, the rights inherent lo a posilion.
An organizalion characterized by centralization is inherently different 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-
sions that affect their work lives. Decentralized departments make it easier lo address
customer concerns as well. The effects of central ization and decenlralization can be
predicted: Centralized organizations are beuer for avoiding commission errors (bad
choices), while decentralized organizalions are beuer for avoiding omission errors (lost
opportunilies ). 12
Management efforts to make organizations more flexible and responsive have pro-
duced a recent trend toward decentralized 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 might
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/
the-last-days-of-target-canada/ .
2 “Su rvey: Few CFOs Plan to Invest in I n terpersonal Skil ls
Developmen t for Their 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-for-Their-Teams.
3 These co m panies were nam ed in the JOO Top Em ployers for
201 7. See http://www.canadastop100.com/ nationalf; http://www.
ca nadastop 100.co m/ atlant 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?
An Empirical Investigation of the Relationsh ip between Being a
‘Great Place to Work’ and Firm Performance,• Personnel Psychology
(Winter 2003), pp. 965-993.
5 S. E. Humphrey, J. D. Nahrgang, and F. P. Margeson, “Integrating
Motivatio nal, Social, and Contextual Work Design Features: A
Meta-analytic Summary a nd Theoretical Exten., ion of the \<\fork De.sign Literature, • Journal of Applied Ps)'chology 92, no. 5 (2007) , pp. 1332- 1356. 6 E. R. Burris, "The Risks and Rewards of Speaking Up: Managerial Responses to Employee Voice,· Academ)' of Ma11ageme111 Jo11mal 55, no. 4 (2012), pp. 851- 875. 7 T. L. Miller, C. L. Wesley II, and D. E. 'A'illiams, "Educati ng the Minds of Caring Heart.<: Comparing the Views of Practitioners and Educators on the Importance of Social Entrepreneursh ip Competencies," Academy of Ma,iagement Learning & Education 2, no. 3 (2012), pp. 349- 370. 8 H. Aguin i.< and A. Glavas, "\.Vhat 'A1e Don't Know about Corporate Social Responsibility: A Review and Research Agenda,• Jo11mal of Ma11ageme11t (July 2012), pp. 932- 968. 9 Vignette ba.petime11tal Social Psyclrolog)’ 49 (2013), pp. 287- 291; J. 0. Sly
and S. Cherya n, “V,.lhen Compliments Fail to Flatter: America n
Individualism and Respo nses to Positive Stereotypes,” Journal
of Personality a11d Social Psychology 104 (2013), pp. 87- 102; M. J.
Tagler, “Choking Under th e Pressure o f a Positive Stereotype:
Gender Identificatio n a nd Self-Consciousness Moderate Men’s
Math Test Performance,” Journal of Social Psrclrolog)’ 152 (2012),
pp. 401 – 416; M.A. Beasley and M. J. Fischer, “\.VhyThey Leave:
The Impact of Stereotype Threat on the Attrition of Women and
Minorities from Science, Math and Engineering Majors,” Social
Psrcl1ology of Ed11catio11 15 (2012), pp. 427-448; and A. Krendl,
I. Gainsburg, and N. Ambady, “The Effects o f Stereotypes a nd
Observer Pres.sure o n Athletic Performance,• Journal of Sport &
Exercise Psychology 34 (2012), pp. 3- 15.
20 K. A. Martin, A. R. Sinden, and J. C. Fleming, “Inactivity May Be
Hazardous to Your Image: The EffeCL< of Exercise Participation o n Impression Formation," Joumal of Sport & Exercise Psyclrolog)' 22, no. 4 (December 2000), pp. 283- 291. 21 F. Yua n a nd R. \.V. \.Vood man, "Innovative Behavior in th e \.Vorkplace: T he Ro le o f Perfo rma nce and Image O utco me Expectations,· Academy of Manage111e11t Joun,al 53, no. 2 (2010), pp. 323- 342. 22 J. K. Harter, F. L. Schmidt, J. W. Asplund, E. A. Killham, and S. Agrawal, "Causal Impact of Employee \.Vork Perceptions on the Bottom Line of O rganizations," Perspectives on Psychological Science 5, no. 4 (2010), pp. 378- 389. 23 Y. H. Kim, C. Y. Chiu, and Z. Zou, "Know Thyself: Misperceptions of Actual Performance U nderm ine Achievement Motivation, Futu re Performa nce, a nd Subjective Well-Being,· Journal of Per,;onalit)• a,1d Social Psyclrolog)' 99, no. 3 (2010), pp. 395- 409. 24 H. G. Heneman Ill and T. A. Judge, Staffi11g Organ izat ions (Middleton, WI: Mendota House, 2012). 25 J. Willis and A. Todorov, "First Impressions: Making Up Your Mind after a lOOms Exposure to a Face, • Psychological Scie11ce, July 2006, pp. 592- 598. 26 N. Eisenkraft, "Accurate by \.Vay o f Aggregation: Should You Trust Your Intuition-Based First Impressions?" Journal of £>·perime11tal
Social Psrclrology, March 2013, pp. 277-279.
27 See, for exa mple, K. F. E. Wong and J. Y. Y. Kwong, ‘ Effects of
Rater Coa ls o n Rating Patterns: Evidence from a n Experimental
Field Study,• Journal of Applied Psrclrology 92, no. 2 (2007),
pp. 577-585; a nd S. E. DeVoe and S. S. Iyengar, “Managers’
T heo ries of Subordina tes: A Cross-Cu ltu ral Exa mi na tion
of Ma nager Pe rceptions of Mo tiva tion a nd Appra isa l of
Performance,” Organizational Behavior a,id Human Decisio,i
Processes, January 2004, pp. 47- 61.
28 D. B. McNatt a nd T. A. Judge, “Boundary Co nd itio ns of the
Galatea Effect: A Field Experiment and Constructive Replication,·
Academy of Management Joumal, August 2004, pp. 550- 565;
and X. M. Bezuijen, P. T. van den Berg, K. van Dam, a nd H.
Th ieriy, ‘ Pygmalion and Employee Learning: The Role of Leader
Behaviors,· Joumal of Ma11age111e11t 35 (2009), pp. 1248- 1267.
29 See, for exa mple, K. F. E. Wong and J. Y. Y. Kwong, ‘ Effects of
Rater Coa ls o n Rating Patterns: Evidence from a n Experimental
Field Study,• Journal of Applied Psrclrology 92, no. 2 (2007),
pp. 577-585; a nd S. E. DeVoe and S. S. Iyengar, “Managers’
T heo ries of Subordina tes: A Cross-Cu ltu ral Exa mi na tion
of Ma nager Pe rceptions of Mo tiva tion a nd App ra isa l of
Performance, ” Organizational Behavior a,id Human Decisio,i
Processes, January 2004, pp. 47- 61.
30 Vignette based on R. Faber, “Michele Ro ma now Y..•ants to Be
a Helpfu l Dragon,” Maclea11’s, Januaiy 6, 2016, http://www.
macleans.ca/ education/ michele-romanow-wanL<·tO·be·a·helpful. dragon/ . 31 D. Leising, J. Scharloth, 0. Lohse, and D. \.Vood, "V,.lhat Type.< of Te rms Do People Use \.Vhen Describing an Ind ivid ual's Personality?' Ps)'chological Science 25, no. 9 (2014), pp. 1787- 1794. 32 L Weber, 'To Get a Job, New Hires Are Put to the Test,• \,\fall Street Joumal, April 15, 2015, pp. Al, AIO. 33 L. Weber and E. Dwoskin, "As Persona lity Tests Mu lt iply, Emp loyers Are Split, · Wall Street Journal, September 30, 2014, pp. Al, AJO. 34 D. Belkin, "Colleges Put the Emphasis on Personality,· Wall Street Joumal, January 9, 2015, p. A3. 35 M. J. W. Mcl.amona, M. C. Roth,teinb, R. D. Coffi nc, M. J. Riederd, A. Poolec, H. T. Krajewskie, D. M. Powell, R. 8. Jelley, a nd T. Me..~ension and
Meta-ana lytic Test: Journal of Applied Psychology 95, no. 5 (2010),
pp. 834- 848; and D. Xanthopoulou, A. B. Bakker, E. Demerouti,
and W. B. Schaufeli, “Reciproca l Relationships between Job
End notes 567
Resources, Personal Resources, and Work Engagement,• Journal of
Vocational Behavior 74, no. 3 (2009), pp. 235- 244.
103 B. L. Rich, J. A. LePine, and E. R. Crawford, “Job Engagement:
Antecedent.< and Effects on Job r e rforma nce, • Academy of Management Journal 53, no. 3 (2010), pp. GI 7- 635. 104 M. Tims, A. B. Bakker, and D. Xanthopoulou, "Do Tran..~ in Work Team Diversity
Research: A Meta-analytic Review,• Academy of Manageme11t Joumal
52, no. 3 (2009), pp. 599- 627; S. K. Horwitz a nd I. B. Horwitz,
*The Effects of Team Diversity on Team Outcomes: A Meta-analytic
Review of Team Demography,· Joumal of Management 33, no. 6
(2007), pp. 987- 1015; and S. T. Bell, A. J. Villado, M.A. Lukasik,
L. Belau, and A. L Briggs, “Getting Specific about Demographic
Diversity Variable and Team Performance Relationship.<: A Meta- analysis: Journal of Management 37, no. 3 (2011), pp. 709-743. 92 S. J. Shin a nd J. Zho u, "Wh en Is Educational Specialization Heterogeneity Related to Creativity in Research and Development Teams? Tra nsformatio nal Leadership as a Moderator." Jounial of Applied PS)'cl1ology 92, no. 6 (2007), pp. I 709- 1721 ; and K. J. Klein, A. P. Knight, J. C. Ziegert, B. C. Lim, and J. L. Saltz, *When Tea m Members' Values Differ: T he Moderating Ro le of Team Leadership," Organizntional Behavior and Human Decision Processes 114, no. 1 (2011 ), pp. 25- 36. 93 J. Shin, T. Kim, J. Lee, and L. Bian, "Cognitive Team Diversity a nd Individual Team Member Creativity: A Cross-Level Interaction,* Academ)' of Manageme11t Joumal 55, no. 1 (2012), pp. 197- 212. 94 W. E. \.Vatson, K. Ku mar, a nd L. K. Mich aelsen, "Cultural Divers ity's Impact o n Interaction Process and Performa nce: Compari ng Homogeneous and Diverse Task C roups," Academy of Manageme11t Journal, June 1993, pp. 590- 602; P. C. Earley and E. Mo. 1996. Reprinted and Electronically
reproduced by permission of Pearson Education, Inc., Upper
Saddle River, New Jersey.
OB on the Edge:Trust
1 Based on 8. Maclellan, ‘ Turn ing 20, a nd Still a Young a nd
Independent Agency,” Environ ics, August 14, 2014, h ttp ://
envi ronicspr.com/ us/ 20 I 4 / 08/ turning-20-sti I I -young-i ndepen-
dent-agency/; “Stitches of Laughter Help Create light-Knit Team,•
Globe and Mail, April 17, 2014; and C. Marr, ‘ Sabbaticals 800.<1 Job Satisfaction," Gazette (Montreal) , August 18, 2012, p. F14. 2 See, for example, K. T. Dirks and D. L. Ferrin, 'Trust in Leadership: Meta-analytic Findings and Implications for Research and Practice, · Joumal of Applied Psychology, August 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 an o rganizational context, Organization Sciet1ce, January- February 2003; and R. Galford and A. S. Drapeau, Tlte Tmsted Leader (New York: Free Press, 2003). F. K. Sonnenberg, 'Trust Me, Trust Me Not,• lndustry•,Veek, August 16, 1993, pp. 22 - 28; and L. T. Hosmer, "Trust: the Connecting Li nk between Organizational Theoiy and Philosophical Ethics: Academ)' of Manageme111 Review, April 1995, pp. 379- 403. 'A Lack of Trust and Confidence: Majority of Canadian Employees Don't Believe Their Senior Leaders,• CNW, news release, October 18, 2012, http://W\,~v.hrvoice.org/wp-content/ uploads/ 2013/05/ BABW-1 nfographic . h ttp :// e n v iro n i cs p r. co m / thi n k ing/ the -enviro n i cs · communications·cantruSt·i ndex/. J. Pollack, ' Do Your Em ployees Trust You? Behaviou r Survey Finds Lack of Trust in Senior Leaders as Top Reason for Quitting, · Telegraph-Journal, May 30, 2009, p. El . D. M. Rousseau, S. 8. Sitkin, R. S. Burt, and C. Camerer, "Not So Different After All : A Cross-Discipline View o f Trust," Academy of Management Review, July J 998, pp. 393- 404; and J. A. Simpson, "Psychologica l Fou ndatio ns of Trust," Current Directions in Psychological Science 16, no. 5 (2007), pp. 264- 268. 8 See for instance, K. T. Dirks and D. L. Ferrin, 'Trust in Leadership: Meta-analytic Findings and Implication.< for Research and Practice,• Journal of Applied Ps)'chology 87, no. 4, (2002), pp. 611 - 628; D. I. Jung a nd 8. J. Avo lio, ' Open ing the Black Box: An Experimenta l Investigation of the Med iating Effects of Trust and Value Congruence o n Transformational a nd Transactio nal Leadership,· Joumal of Organizational Behavior, December 2000, pp. 949- 964; and A. Zacharatos, J. Barl ing, and R. D. Iverson, ' High-Performance \<\fork Systems and Occupatio nal Safety, · Joumal of Applied Psychology, January 2005, pp. 77- 93. 9 J. 8. Rotter, "Interpersonal Trust, Trustworthiness, and Gullibility," American Ps)'cltologist, January 1980, pp. 1- 7. 10 J. D. Lewis and A. Weigert, 'Trust as a Social Reality," Social Forces, June 1985, p. 970. 11 J. K. Rempel, J. G. Holmes, and M. P. Za nna, ' Trust in Close Relatio ns hips,• Journal of Persona/it)' and Social Ps )'cholog)', July 1985, p. 96. 12 C. M. Cra novetter, "Eco nomic Act io n and Social Structu re: The Problem o f Embeddedness," American Journal of Sociology, Novem ber 1985, p. 491 . 13 R. C. Mayer, J. H. Davis, and F. D. Schoorman, ' An Integrative Model of Organizational Trust,• Academy of Management Review, July 1995, p. 712. 14 C. Joh nson-George a nd \.V. Swap, ' Measu rement of Specific Interpersonal Trust: Constructio n and Validation of a Scale to Assess Trust in a Specific Other,• Joumal of Personality and Social Psychology, September J 982, p. 1306. 15 J. A. Colquitt, 8. A. Scott, and J. A. LePine, 'Trust, Trustworthiness, a nd Trust Pro pensity: A Meta-analytic Test of Their Uniq ue Relationsh ips with Risk Taking and Job Performance, • Journal of Applied Psychology 92, no. 4 (2007) , pp. 909- 927; and F. D. Schoorman, R. C. Mayer, and J. H. Davis, ' An Integrative Model of Organizational Trust: Pa“Ci10logy Bulletin 38 (2012), pp. J 383- 1395.
J. Tierney, “A Serving of Gratitude May Save the Day,· /11ternational
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N. J. Fast, N. Halevy, and A. D. Calinsky, “The Destructive Nature
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T. Seppa la, J. Lipponen, A. Bardi, a nd A. Pi rttilii-Backman,
“Change. Oriented Organizational Citizensh ip Behaviour: An
Interactive Product of Open ness to Change Values, \.Vork Unit
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K. A. DeCelles, D. S. DeRue, J. D. Margolis, a nd T. L. Ceran ic,
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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-rate 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/Subject 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 distance. 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, 317, 318, 320, 327
problem-solv ing (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, 144-148, 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 focus. 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
psychological 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. 213-215, 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, 12-13
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, 61
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 participation. 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, 171-172
employee stock ownership plan (ESOP), 170
flexible benefits, 170-1 71 , 187
group-based incentives, 169-170
individual-based incentives, 166-169
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, 164-165
piece-rate pay plan, 166-167
profit-sharing plan, 169
responses to, 143-150
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 might
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 ct . A situation in which an individual finds that complying
with 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
with the beneficial effects of intrinsic motivation and the harmful
effects of extrinsic motivation. 148-149, 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 proposes 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 (or 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 leadership. 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 organizations, 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 differ- 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 control. The number of employees who report to a manager. 462-463, 4621 spiritual organization, 453-454 spirituality. See wO!l

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