Organizational Behavior - McGraw-Hill Education
mcs62589 fm i-xxviii 1.indd Page i 12/5/13 5:50 PM f-496/204/MH02010/mcs62589 disk1of1/0077862589/mcs62589 pagefilesorganizationalbehavior
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mcs62589 fm i-xxviii 1.indd Page iii 12/5/13 5:50 PM f-496/204/MH02010/mcs62589 disk1of1/0077862589/mcs62589 pagefilesorganizationalbehaviorseventh editionSteven L. McShaneThe University of Western AustraliaMary Ann Von GlinowFlorida International University
mcs62589 fm i-xxviii 1.indd Page iv 06/12/13 2:13 PM user-f-w-198/204/MH02010/mcs62589 disk1of1/0077862589/mcs62589 pagefilesORGANIZATIONAL BEHAVIOR:EMERGING KNOWLEDGE, GLOBAL REALITY, SEVENTH EDITIONPublished by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright 2015 by McGraw-HillEducation. All rights reserved. Printed in the United States of America. Previous editions 2013, 2010, and 2008.No part of this publication may be reproduced or distributed in any form or by any means, or stored in a databaseor retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to,in any network or other electronic storage or transmission, or broadcast for distance learning.Some ancillaries, including electronic and print components, may not be available to customers outside theUnited States.This book is printed on acid-free paper.1 2 3 4 5 6 7 8 9 0 DOR/DOR 1 0 9 8 7 6 5 4ISBN 978-0-07-786258-9MHID 0-07-786258-9Senior Vice President, Products & Markets: Kurt L. StrandVice President, Content Production & Technology Services: Kimberly Meriwether DavidManaging Director: Paul DuchamExecutive Brand Manager: Michael AblassmeirExecutive Director of Development: Ann TorbertManaging Development Editor: Laura Hurst SpellEditorial Coordinator: Claire WoodMarketing Manager : Elizabeth TrepkowskiDirector, Content Production: Terri SchieslContent Project Manager: Katie KlochanMedia Project Manager: Sue LombardiBuyer II: Debra R. SylvesterDesign: Debra KubiakCover Image: pavelgr/shutterstockLead Content Licensing Specialist: Lori HancockTypeface: 10.25/12.25 Adobe Garamond Pro RegularCompositor: Aptara , Inc.Printer: R. R. DonnelleyAll credits appearing on page or at the end of the book are considered to be an extension of the copyright page.Library of Congress Cataloging-in-Publication DataMcShane, Steven Lattimore.Organizational behavior / Steven L. McShane, The University of Western Australia, Mary AnnVon Glinow, Florida International University.—Seventh edition.pages cmIncludes bibliographical references and index.ISBN 978-0-07-786258-9 (alk. paper)—ISBN 0-07-786258-9 (alk. paper)1. Organizational behavior. I. Von Glinow, Mary Ann Young, 1949- II. Title.HD58.7.M42 2015658—dc232013045419The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does notindicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not guaranteethe accuracy of the information presented at these sites.www.mhhe.com
mcs62589 fm i-xxviii 1.indd Page v 12/5/13 5:50 PM f-496/204/MH02010/mcs62589 disk1of1/0077862589/mcs62589 pagefilesabout the AUTHORSSteven L. McShaneSteven L. McShane is Winthrop Professor of Management at the University of WesternAustralia (UWA) Business School, where he receives high teaching ratings from students in Perth, Singapore, Manila, and other cities where UWA has offered its programs. He previously taught in the business faculties at Simon Fraser University andQueen’s University in Canada. Steve is also a popular visiting speaker, having givendozens of invited talks and seminars in recent years to faculty and students in theUnited States, China, Canada, Malaysia, India, and other countries.Steve earned his Ph.D. from Michigan State University, where he specialized in organizational behavior and labor relations. He also holds a Master’s of Industrial Relationsfrom the University of Toronto and an undergraduate degree from Queen’s University inCanada. Steve is a past president of the Administrative Sciences Association of Canada(the Canadian equivalent of the Academy of Management) and served as Director ofGraduate Programs in Simon Fraser University’s business faculty. He has conductedexecutive programs with Nokia, TÜV-SÜD, Wesfarmers Group, Main Roads WA,McGraw-Hill, ALCOA World Alumina Australia, and many other organizations.Along with co-authoring Organizational Behavior, Seventh Edition, Steve is leadco-author of Canadian Organizational Behaviour, Eighth Edition (2012), Organisational Behaviour: Asia Pacific, Fourth Edition (2013), and M: Organizational Behavior, Second Edition (2014). He is also co-author of editions or translations of hisorganizational behavior books in China, India, Quebec, Taiwan, and Brazil. Steve haspublished several dozen articles and conference papers on workplace values, trainingtransfer, organizational learning, exit-voice-loyalty, employee socialization, wrongfuldismissal, media bias in business magazines, and other diverse topics.Steve enjoys spending his leisure time hiking, swimming, body board surfing,canoeing, skiing, and travelling with his wife and two daughters.Mary Ann Von GlinowDr. Von Glinow is a Knight Ridder Eminent Scholar Chair in International Management, and has been Director of the Center for International Business Education andResearch at Florida International University for the past 17 years. She is the 2010 to2012 President of the Academy of International Business (AIB) and an editor of JIBS.Previously on the Marshall School faculty of the University of Southern California,she has an MBA and a Ph.D. in Management Science from The Ohio State University. Dr. Von Glinow was the 1994–95 President of the Academy of Management, theworld’s largest association of academicians in management, and is a Fellow of theAcademy and the Pan-Pacific Business Association. She sits on 11 editorial reviewboards and numerous international panels. She teaches in executive programs in LatinAmerica, Central America, the Caribbean region, Asia, and the U.S.Dr. Von Glinow has authored over 100 journal articles and 13 books. Her mostrecent books include Managing Multinational Teams (Elsevier, 2005) and Organizational Learning Capability (Oxford University Press, 1999; in Chinese and Spanishtranslation), which won a Gold Book Award from the Ministry of Economic Affairsv
mcs62589 fm i-xxviii 1.indd Page vi 12/5/13 5:50 PM f-496vi/204/MH02010/mcs62589 disk1of1/0077862589/mcs62589 pagefilesAbout the Authorsin Taiwan in 2002. She has also coauthored the popular Organizational Behavior, SixthEdition, textbook and M: Organizational Behavior, First Edition (McGraw-Hill/Irwin,2012). She heads an international consortium of researchers delving into “Best InternationalHuman Resource Management Practices,” and her research in this arena won an award fromthe American Society for Competitiveness’ Board of Trustees. She also received an NSFgrant to study globally distributed work. Dr. Von Glinow is the 2005 Academy of Management recipient of the Distinguished Service Award, which is one of the Academy’s threehighest honors bestowed.Mary Ann is consultant to a number of domestic and multinational enterprises, andserves as a mayoral appointee to the Shanghai Institute of Human Resources in China. Since1989, she has been a consultant in General Electric’s “Workout” and “Change AccelerationProgram” including “Coaching to Management.” Her clients have included Asia DevelopmentBank, American Express, Diageo, Knight Ridder, Burger King, Pillsbury, Westinghouse,Southern California Edison, Aetna, State of Florida, Kaiser Permanente, TRW, RockwellInt’l, Motorola, N.Y. Life, Amoco, Lucent, and Joe’s Stone Crabs, to name a few. She is onthe Board of Friends of WLRN, Fielding University, Friends of Bay Oaks, the Pan-PacificBusiness Association, and Animal Alliance in Los Angeles. She is actively involved in severalanimal welfare organizations and received the 1996 Humanitarian Award of the Year fromMiami’s Adopt-a-Pet.
mcs62589 fm i-xxviii 1.indd Page vii 12/5/13 5:50 PM f-496/204/MH02010/mcs62589 disk1of1/0077862589/mcs62589 pagefilesdedicationDedicated with love and devotion to Donna, and to our wonderfuldaughters, Bryton and Madison—S.L.M.Dedicated to Zack, Emma, Googun, Blue, Lucky, Chloe, and Grazia—M.A.V.G.
mcs62589 fm i-xxviii 1.indd Page viii 06/12/13 7:38 PM user-f467/204/MH02010/mcs62589 disk1of1/0077862589/mcs62589 pagefilesbrief CONTENTS12INTRODUCTIONADDITIONAL CASESChapter 1Case 1A MIR Kiss? 452Case 2Arctic Mining Consultants 453Case 3Chengdu Bus Group 455Case 4Fran Hayden Joins Dairy Engineering 456Case 5From Lippert-Johanson Incorporated toFenway Waste Management 458Case 6From REO to Nuclear to Nucor 459Case 7Going to the X-Stream 462Case 8The Regency Grand Hotel 464Case 9Simmons Laboratories 465Introduction to the Field of OrganizationalBehavior 2INDIVIDUAL BEHAVIOR ANDPROCESSESChapter 2Individual Behavior, Personality, andValues 30Chapter 3Perceiving Ourselves and Others inOrganizations 62Chapter 4Workplace Emotions, Attitudes, andStress 92Chapter 5Foundations of Employee Motivation 122Chapter 6Applied Performance Practices 156Chapter 7Decision Making and Creativity 1863Case 10 Star Enterprises—Rita’s Issues at Work 469Case 11 Tamarack Industries 470Case 12 The Outstanding Faculty Award 471Appendix ATEAM PROCESSESTheory Building and Systematic Research Methods 473Chapter 8Team Dynamics 218Appendix BChapter 9Communicating in Teams andOrganizations 252Chapter 10 Power and Influence in the Workplace 282Chapter 11 Conflict and Negotiation in theWorkplace 310Chapter 12 Leadership in Organizational Settings 3404ORGANIZATIONAL PROCESSESChapter 13 Designing Organizational Structures 368Chapter 14 Organizational Culture 396Chapter 15 Organizational Change 424viiiScoring Keys for Self-Assessment Activities (available online atwww.mhhe.com/mcshane7e) B1Endnotes EN-1Photo Credits PC-1Organization Index I-1Name Index I-3Glossary/Subject Index I-24
mcs62589 fm i-xxviii 1.indd Page ix 12/5/13 5:50 PM f-496/204/MH02010/mcs62589 disk1of1/0077862589/mcs62589 pagefilescontentsPreface xviINTRODUCTION1CHAPTER 1 Introduction to theField of Organizational Behavior 2Welcome to the Field of OrganizationalBehavior! 4The Field of Organizational Behavior 4Historical Foundations of Organizational Behavior 5Why Study Organizational Behavior? 6Perspectives of OrganizationalEffectiveness 7Open Systems Perspective 8Global Connections 1.1: Zara Relies on OpenSystems Thinking for Fast Fashion 9Organizational Learning Perspective 10High-Performance Work Practices (HPWP)Perspective 13Stakeholder Perspective 14Connecting the Dots: Organizational Effectiveness andOrganizational Behavior 16Contemporary Challenges forOrganizations 17Globalization 17Increasing Workforce Diversity 18Emerging Employment Relationships 20Anchors of Organizational BehaviorKnowledge 22The Systematic Research Anchor 23Debating Point: Is There Enough Evidence to SupportEvidence-Based Management? 24The Multidisciplinary Anchor 24The Contingency Anchor 25The Multiple Levels of Analysis Anchor 25The Journey Begins 25Chapter Summary 26Key Terms 26Critical Thinking Questions 27Case Study: Improving Health by Getting Lean 27Web Exercise: Diagnosing OrganizationalStakeholders 28Self-Assessment: It all Makes Sense? 282INDIVIDUAL BEHAVIORAND PROCESSESCHAPTER 2 Individual Behavior,Personality, and Values 30MARS Model of Individual Behavior andPerformance 32Employee Motivation 33Ability 33Role Perceptions 34Situational Factors 35Types of Individual Behavior 35Task Performance 35Organizational Citizenship 36Counterproductive Work Behaviors 37Joining and Staying with theOrganization 37Maintaining Work Attendance 38Personality in Organizations 38Personality Determinants: Nature versusNurture 39Five-Factor Model of Personality 40Jungian Personality Theory and the Myers-BriggsType Indicator 42Personality Testing in Organizations 44Debating Point: Should Companies Use PersonalityTests to Select Job Applicants? 44Values in the Workplace 45Types of Values 45Values and Individual Behavior 47Values Congruence 47Ethical Values and Behavior 48Three Ethical Principles 49Moral Intensity, Moral Sensitivity, and SituationalInfluences 49Supporting Ethical Behavior 51Values Across Cultures 52Individualism and Collectivism 52Power Distance 53Uncertainty Avoidance 54Achievement-Nurturing Orientation 54ix
mcs62589 fm i-xxviii 1.indd Page x 12/5/13 5:51 PM f-496x/204/MH02010/mcs62589 disk1of1/0077862589/mcs62589 pagefilesContentsGlobal Connections 2.1: Working with High PowerDistance in China 54Caveats About Cross-Cultural Knowledge 55Cultural Diversity Within the United States 55Chapter Summary 56Key Terms 56Critical Thinking Questions 57Case Study: Pushing Papers Can Be Fun 57Class Exercise: Test Your Knowledgeof Personality 58Class Exercise: Personal Values Exercise 59Team Exercise: Ethics Dilemma Vignettes 59Self-Assessment: Are You Introvertedor Extroverted? 60Team Exercise: Personal and Organizational Strategies forDeveloping a Global Mindset 89Self-Assessment: How Much Does Work Define YourSelf-Concept? 904 Workplace Emotions, Attitudes,and Stress 92CHAPTEREmotions in the Workplace 94Types of Emotions 94Emotions, Attitudes, and Behavior 95Debating Point: Is Having Fun at Work Reallya Good Idea? 98Managing Emotions at Work 99Emotional Display Norms Across Cultures 100Emotional Dissonance 1003 Perceiving Ourselves and Othersin Organizations 62Emotional Intelligence 101Self-Concept: How We Perceive Ourselves 64Job Satisfaction 103CHAPTERSelf-Concept Complexity, Consistency, and Clarity 64Self-Enhancement 66Self-Verification 67Self-Evaluation 67The Social Self 68Self-Concept and Organizational Behavior 69Perceiving the World Around Us 70Perceptual Organization and Interpretation 72Specific Perceptual Processes and Problems 73Stereotyping in Organizations 73Attribution Theory 76Self-Fulfilling Prophecy 78Other Perceptual Effects 79Improving Perceptions 81Awareness of Perceptual Biases 81Debating Point: Do We Need Diversity TrainingPrograms? 81Improving Self-Awareness 82Meaningful Interaction 83Global Connections 3.1: Experiencing MeaningfulInteraction on the Front Line 84Global Mindset: Developing Perceptions AcrossBorders 84Developing a Global Mindset 85Developing a Global Mindset Through Immersion 86Chapter Summary 86Key Terms 87Emotional Intelligence Outcomes and Training 102Job Satisfaction and Work Behavior 105Job Satisfaction and Performance 106Job Satisfaction and Customer Satisfaction 106Job Satisfaction and Business Ethics 107Organizational Commitment 108Consequences of Affective andContinuance Commitment 109Building Organizational Commitment 109Work-Related Stress and Its Management 110General Adaptation Syndrome 110Consequences of Distress 111Stressors: The Causes of Stress 112Global Connections 4.1: Working to Death inChina 113Individual Differences in Stress 114Managing Work-Related Stress 114Chapter Summary 116Key Terms 117Case Study: Rough Seas on the LINK650 117Class Exercise: Strengths-Based Coaching 118Team Exercise: Ranking Jobs on Their EmotionalLabor 119Self-Assessment: Are You in Touch withYour Emotions? 120CHAPTER 5 Foundations of EmployeeMotivation 122Critical Thinking Questions 87Employee Engagement 124Case Study: Hy Dairies, Inc. 88Web Exercise: Diversity & Stereotyping on Display inEmployee Drives and Needs 125Corporate Websites 89Individual Differences in Needs 126Maslow’s Needs Hierarchy Theory 127
mcs62589 fm i-xxviii 1.indd Page xi 12/5/13 5:51 PM f-496/204/MH02010/mcs62589 disk1of1/0077862589/mcs62589 pagefilesContentsLearned Needs Theory 128Four-Drive Theory 130Expectancy Theory of Motivation 133Expectancy Theory in Practice 134Organizational Behavior Modification and SocialCognitive Theory 136Organizational Behavior Modification 136Global Connections 5.1: Reinforcing Work BehaviorThrough Gamification 138Social Cognitive Theory 138Goal Setting and Feedback 139Balanced Scorecard 141Characteristics of Effective Feedback 141Sources of Feedback 143Evaluating Goal Setting and Feedback 144Organizational Justice 144Equity Theory 144Debating Point: Does Equity Motivate More thanEquality? 145Procedural Justice 147Chapter Summary 148Key Terms 149Critical Thinking Questions 149Case Study: Predicting Harry’s Work Effort 150Case Study: Cincinnati Super Subs 151Class Exercise: Needs Priority Exercise 152Class Exercise: The Learning Exercise 153Team Exercise: Bonus Decision Exercise 153Self-Assessment: Need Strength Questionnaire 154xiJob Design Practices 167Job Design and Work Efficiency 167Scientific Management 168Problems with Job Specialization 168Job Design and Work Motivation 169Core Job Characteristics 170Global Connections 6.2: Customer Talks Raise TaskSignificance and Identity 171Critical Psychological States 171Individual Differences 171Social and Predictability Job Characteristics 172Job Design Practices that Motivate 172Job Rotation 172Job Enlargement 173Job Enrichment 173Empowerment Practices 175Supporting Empowerment 175Global Connections 6.3: Svenska HandelsbankenBranch-Level Empowerment 176Self-Leadership Practices 176Self-Leadership Strategies 177Effectiveness of Self-Leadership 179Personal and Situational Predictors of Self-Leadership 179Chapter Summary 180Key Terms 181Critical Thinking Questions 181Case Study: Yakkatech, Inc. 181Team Exercise: Is Student Work Enriched? 182Self-Assessment: What Is Your Attitude Toward Money? 184CHAPTER6 Applied PerformancePractices 156CHAPTERThe Meaning of Money in the Workplace 158Financial Reward Practices 159Membership- and Seniority-Based Rewards 160Job Status–Based Rewards 160Competency-Based Rewards 161Performance-Based Rewards 161Improving Reward Effectiveness 163Debating Point: Is It Time to Ditch the PerformanceReview? 164Link Rewards to Performance 164Ensure That Rewards Are Relevant 165Use Team Rewards for Interdependent Jobs 165Ensure That Rewards Are Valued 165Watch Out for Unintended Consequences 165Global Connections 6.1: When Rewards GoWrong 1667 Decision Making and Creativity 186Rational Choice Paradigm of Decision Making 188Rational Choice Decision-Making Process 189Problems with the Rational Choice Paradigm 190Identifying Problems and Opportunities 190Problems with Problem Identification 191Global Connections 7.1: Famous MissedOpportunities 192Identifying Problems and Opportunities More Effectively 193Searching for, Evaluating, and ChoosingAlternatives 193Problems with Goals 193Problems with Information Processing 193Problems with Maximization 195Evaluating Opportunities 196Emotions and Making Choices 196Intuition and Making Choices 198Making Choices More Effectively 198Implementing Decisions 199
mcs62589 fm i-xxviii 1.indd Page xii 12/5/13 5:51 PM f-496xii/204/MH02010/mcs62589 disk1of1/0077862589/mcs62589 pagefilesContentsEvaluating Decision Outcomes 199Virtual Teams 239Escalation of Commitment 200Evaluating Decision Outcomes More Effectively 201Debating Point: Are Virtual Teams More TroubleThan They’re Worth? 240Success Factors for Virtual Teams 241Creativity 201The Creative Process 202Characteristics of Creative People 203Organizational Conditions Supporting Creativity 205Activities That Encourage Creativity 205Team Decision Making 241Constraints on Team Decision Making 242Improving Creative Decision Making in Teams 243Brainstorming 243Employee Involvement in Decision Making 206Chapter Summary 245Debating Point: Should Organizations PracticeDemocracy? 207Key Terms 245Global Connections 7.2: Brasilata, the IdeasCompany 208Chapter Summary 210Case Study: ArbreCorp Ltée 246Team Exercise: Team Tower Power 247Team Exercise: Human Checkers 248Team Exercise: Mist Ridge 249Self-Assessment: What Team Roles Do YouKey Terms 211Prefer? 250Benefits of Employee Involvement 208Contingencies of Employee Involvement 209Critical Thinkin
McGraw-Hill, ALCOA World Alumina Australia, and many other organizations. Along with co-authoring Organizational Behavior, Seventh Edition, Steve is lead co-author of Canadian Organizational Behaviour, Eighth Edition (2012), Organisa-tional Behaviour: Asia Pacific, Fourth Edition (2013), and M: Organizational Behav-ior, Second Edition (2014).
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