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dedication
1
INTRODUCTION
Chapter 1 Introduction to the Field of Organizational
Behavior 2
ADDITIONAL CASES
Case 1
Case 2
A MIR Kiss? 452
Arctic Mining Consultants 453
2
Case 3 Chengdu Bus Group 455
INDIVIDUAL BEHAVIOR AND Case 4 Fran Hayden Joins Dairy Engineering 456
PROCESSES Case 5 From Lippert-Johanson Incorporated to
Fenway Waste Management 458
Chapter 2 Individual Behavior, Personality, and
Values 30 Case 6 From REO to Nuclear to Nucor 459
Chapter 3 Perceiving Ourselves and Others in Case 7 Going to the X-Stream 462
Organizations 62 Case 8 The Regency Grand Hotel 464
Chapter 4 Workplace Emotions, Attitudes, and
Case 9 Simmons Laboratories 465
Stress 92
Case 10 Star Enterprises—Rita’s Issues at Work 469
Chapter 5 Foundations of Employee Motivation 122
Case 11 Tamarack Industries 470
Chapter 6 Applied Performance Practices 156
Case 12 The Outstanding Faculty Award 471
Chapter 7 Decision Making and Creativity 186
3
Appendix A
TEAM PROCESSES Theory Building and Systematic Research Methods 473
4
ORGANIZATIONAL PROCESSES
Chapter 13 Designing Organizational Structures 368
Chapter 14 Organizational Culture 396
Chapter 15 Organizational Change 424
viii
contents
Preface xvi
INTRODUCTION
CHAPTER 1 Introduction to the
Field of Organizational Behavior 2
1 INDIVIDUAL BEHAVIOR
AND PROCESSES 2
CHAPTER 2 Individual Behavior,
Welcome to the Field of Organizational
Personality, and Values 30
Behavior! 4 MARS Model of Individual Behavior and
The Field of Organizational Behavior 4 Performance 32
Historical Foundations of Organizational Behavior 5 Employee Motivation 33
Why Study Organizational Behavior? 6 Ability 33
Perspectives of Organizational Role Perceptions 34
Effectiveness 7 Situational Factors 35
Open Systems Perspective 8 Types of Individual Behavior 35
Global Connections 1.1: Zara Relies on Open Task Performance 35
Systems Thinking for Fast Fashion 9 Organizational Citizenship 36
Organizational Learning Perspective 10 Counterproductive Work Behaviors 37
High-Performance Work Practices (HPWP) Joining and Staying with the
Perspective 13 Organization 37
Stakeholder Perspective 14 Maintaining Work Attendance 38
Connecting the Dots: Organizational Effectiveness and Personality in Organizations 38
Organizational Behavior 16
Personality Determinants: Nature versus
Contemporary Challenges for Nurture 39
Organizations 17 Five-Factor Model of Personality 40
Globalization 17 Jungian Personality Theory and the Myers-Briggs
Increasing Workforce Diversity 18 Type Indicator 42
Emerging Employment Relationships 20 Personality Testing in Organizations 44
Anchors of Organizational Behavior Debating Point: Should Companies Use Personality
Knowledge 22 Tests to Select Job Applicants? 44
The Systematic Research Anchor 23 Values in the Workplace 45
Debating Point: Is There Enough Evidence to Support Types of Values 45
Evidence-Based Management? 24 Values and Individual Behavior 47
The Multidisciplinary Anchor 24 Values Congruence 47
The Contingency Anchor 25 Ethical Values and Behavior 48
The Multiple Levels of Analysis Anchor 25 Three Ethical Principles 49
The Journey Begins 25 Moral Intensity, Moral Sensitivity, and Situational
Chapter Summary 26 Influences 49
Key Terms 26 Supporting Ethical Behavior 51
Critical Thinking Questions 27 Values Across Cultures 52
Case Study: Improving Health by Getting Lean 27 Individualism and Collectivism 52
Web Exercise: Diagnosing Organizational Power Distance 53
Stakeholders 28 Uncertainty Avoidance 54
Self-Assessment: It all Makes Sense? 28 Achievement-Nurturing Orientation 54
ix
x Contents
Global Connections 2.1: Working with High Power Team Exercise: Personal and Organizational Strategies for
Distance in China 54 Developing a Global Mindset 89
Caveats About Cross-Cultural Knowledge 55 Self-Assessment: How Much Does Work Define Your
Cultural Diversity Within the United States 55 Self-Concept? 90
Chapter Summary 56
Key Terms 56
CHAPTER 4 Workplace Emotions, Attitudes,
Critical Thinking Questions 57
and Stress 92
Case Study: Pushing Papers Can Be Fun 57 Emotions in the Workplace 94
Class Exercise: Test Your Knowledge Types of Emotions 94
of Personality 58
Emotions, Attitudes, and Behavior 95
Class Exercise: Personal Values Exercise 59
Debating Point: Is Having Fun at Work Really
Team Exercise: Ethics Dilemma Vignettes 59
a Good Idea? 98
Self-Assessment: Are You Introverted
or Extroverted? 60 Managing Emotions at Work 99
Emotional Display Norms Across Cultures 100
Emotional Dissonance 100
CHAPTER 3 Perceiving Ourselves and Others Emotional Intelligence 101
in Organizations 62 Emotional Intelligence Outcomes and Training 102
Class Exercise: Needs Priority Exercise 152 Critical Thinking Questions 181
Class Exercise: The Learning Exercise 153 Case Study: Yakkatech, Inc. 181
Team Exercise: Bonus Decision Exercise 153 Team Exercise: Is Student Work Enriched? 182
Self-Assessment: Need Strength Questionnaire 154 Self-Assessment: What Is Your Attitude Toward Money? 184
Global Connections 7.2: Brasilata, the Ideas Case Study: ArbreCorp Ltée 246
Company 208 Team Exercise: Team Tower Power 247
Benefits of Employee Involvement 208 Team Exercise: Human Checkers 248
Contingencies of Employee Involvement 209 Team Exercise: Mist Ridge 249
Chapter Summary 210 Self-Assessment: What Team Roles Do You
Key Terms 211 Prefer? 250
Critical Thinking Questions 211
CHAPTER 9 Communicating in Teams
Case Study: Employee Involvement Cases 212
and Organizations 252
Team Exercise: Where in the World Are We? 213
Class Exercise: The Hopping Orange 216 The Importance of Communication 254
Class Exercise: Creativity Brainbusters 216 A Model of Communication 255
Self-Assessment: Measuring Your Creative Personality 216 Influences on Effective Encoding and Decoding 256
Communication Channels 257
3
Internet-Based Communication 257
Problems with E-Mail 258
TEAM PROCESSES
Global Connections 9.1: Good-Bye E-Mail, Hello
CHAPTER 8 Team Dynamics 218 Social Media! 259
Workplace Communication Through Social Media 260
Teams and Informal Groups 220 Nonverbal Communication 261
Informal Groups 222 Choosing the Best Communication Channel 262
Advantages and Disadvantages of Teams 223 Social Acceptance 262
The Challenges of Teams 224 Media Richness 263
A Model of Team Effectiveness 225 Communication Channels and Persuasion 265
Organizational and Team Environment 225 Communication Barriers (Noise) 266
Team Design Elements 226 Information Overload 267
Task Characteristics 226 Cross-Cultural and Gender Communication 268
Team Size 228 Nonverbal Differences Across Cultures 268
Team Composition 228 Global Connections 9.2: Politely Waiting for Some
Global Connections 8.1: Finding Team Players at Silence 269
Menlo Innovations 229 Gender Differences in Communication 269
Team Processes 231 Improving Interpersonal Communication 270
Team Development 231 Getting Your Message Across 270
Developing Team Identities and Mental Models 232 Active Listening 271
Team Norms 234 Improving Communication Throughout the
Team Cohesion 234 Hierarchy 272
Team Trust 237 Workspace Design 272
Self-Directed Teams 238 Internet-Based Organizational Communication 272
Success Factors for Self-Directed Teams 239 Direct Communication With Top Management 273
Contents xiii
4
Rituals and Ceremonies 403
ORGANIZATIONAL Physical Structures and Symbols 404
Support Workforce Stability and Communication 412 Debating Point: What’s the Best Speed for
Use Attraction, Selection, and Socialization for Organizational Change? 442
Cultural “Fit” 413 Large Group Intervention Approach 445
Organizational Socialization 414 Parallel Learning Structure Approach 446
Organizational Socialization as a Learning and Adjustment Cross-Cultural and Ethical Issues in Organizational
Process 415 Change 446
Organizational Socialization and Psychological
Organizational Behavior: The Journey Continues 447
Contracts 415
Chapter Summary 447
Stages of Organizational Socialization 416
Key Terms 448
Improving the Socialization Process 417
Critical Thinking Questions 448
Chapter Summary 419
Key Terms 419 Case Study: TransAct Insurance Corporation 449
Critical Thinking Questions 420 Team Exercise: Strategic Change Incidents 450
Self-Assessment: Are You Tolerant of Change? 450
Case Study: Hillton’s Transformation 420
Team Exercise: Organizational Culture Metaphors 421
Class Exercise: Diagnosing Corporate Culture
ADDITIONAL CASES
Proclamations 422 Case 1: A MIR Kiss? 452
Self-Assessment: Which Corporate Culture Do You Case 2: Arctic Mining Consultants 453
Prefer? 423 Case 3: Chengdu Bus Group 455
Case 4: Fran Hayden Joins Dairy Engineering 456
CHAPTER 15 Organizational Change 424 Case 5: From Lippert-Johanson Incorporated to Fenway
Waste Management 458
Lewin’s Force Field Analysis Model 426
Case 6: From REO to Nuclear to Nucor 459
Understanding Resistance to Change 427
Case 7: Going to the X-Stream 462
Why Employees Resist Change 428
Case 8: The Regency Grand Hotel 464
Unfreezing, Changing, and Refreezing 431 Case 9: Simmons Laboratories 465
Creating an Urgency for Change 431
Case 10: Star Enterprises—Rita’s Issues at Work 469
Reducing the Restraining Forces 433
Case 11: Tamarack Industries 470
Global Connections 15.1: Communicate, Involve, or Case 12: The Outstanding Faculty Award 471
Change Your People 435
Refreezing the Desired Conditions 436 Appendix A
Leadership, Coalitions, and Pilot Projects 436 Theory Building and Systematic Research Methods 473
Transformational Leadership and Change 436
Appendix B
Global Connections 15.2: Driving Change Through a
Scoring Keys for Self-Assessment Activities (available online at
“One Ford” Vision 437
www.mhhe.com/mcshane7e) B1
Coalitions, Social Networks, and Change 437
Pilot Projects and Diffusion of Change 438 Endnotes EN-1
Photo Credits PC-1
Four Approaches to Organizational Change 440 Organization Index I-1
Action Research Approach 440 Name Index I-3
Appreciative Inquiry Approach 441 Glossary/Subject Index I-24
Welcome to the dynamic world of organizational behavior! Knowledge is replacing infra-
preface structure. Social media and virtual teams are transforming the way employees interact and
accomplish organizational objectives. Values and self-leadership are replacing command-
and-control management. Companies are looking for employees with emotional intelli-
gence and team competencies, not just technical smarts.
Organizational Behavior, Seventh Edition, is written in the context of these emerging
workplace realities. This edition explains how emotions are the foundation of employee
motivation, attitudes, and decisions; how social networks generate power and shape com-
munication patterns; how self-concept influences individual behavior, team cohesion, and
leadership; and how adopting a global mindset has become an important employee charac-
teristic in this increasingly interconnected world. This book also presents the reality that
organizational behavior is not just for managers; it is relevant and valuable to anyone who
works in and around organizations.
Global Focus
From its first edition, this book has been crafted around the reality that we live in a world of
increasing globalization. The Seventh Edition continues this global focus by introducing the
theme in the first chapter and by discussing global and cross-cultural issues in many other
chapters. Furthermore, every chapter includes truly global examples, not just how American
companies operate in other parts of the world. Some examples include how Tencent founder
and CEO “Pony” Ma Huateng relies on transformational leadership rather than charisma to
lead China’s social media revolution; how the MARS model of individual behavior helps
Iceland Foods Group in the United Kingdom create a high-performing workforce; how
Brasilata in Sao Paulo, Brazil, succeeds through employee involvement and creativity; how
the CEO of Alcoa Russia fended off corruption by emphasizing the company’s values; and
how DHL Express in Africa succeeds through high employee engagement.
xvi
Preface xvii
xx
Acknowledgments xxi
We also extend our sincere thanks to Eileen Hogan for exceptional work on revision of the
test bank, as well as to Judith Bulin, Linda M. Hoffman, and Todd Korol for their assistance
in creating and updating the Connect and LearnSmart content. In addition, we thank
the many instructors in the United States and abroad who contributed cases and exercises to
this edition of Organizational Behavior.
Steve also extends special thanks to his students for sharing their learning experiences and
assisting with the development of the organizational behavior textbooks he writes in the
United States, Canada, and the Asia-Pacific region. Along with working with Mary Ann,
Steve is honored to work with his other co-authors, including Kevin Tasa (Schulich School
of Business, York University) and Sandra Steen (University of Regina) for the Canadian
edition, and Mara Olekalns (Melbourne Business School) and Tony Travaglione (Pro
vice-chancellor, Curtin Business University) for the Asia-Pacific edition. He also thanks the
co-authors of other translations and adaptations. Steve is grateful to his colleagues at the
University of Western Australia for their support during these changing times. But more
than anything else, Steve is forever indebted to his wife Donna McClement and to their
wonderful daughters, Bryton and Madison. Their love and support give special meaning to
Steve’s life.
Mary Ann would also like to acknowledge the many professionals at McGraw-Hill/Irwin
who have worked to make the 7th edition a reality. In addition, she would like to thank the
many, many students who have used and hopefully enjoyed this book, so a big shout out to
all students everywhere who have used and enjoyed previous editions of this book. She
would also like to thank the faculty and staff at Florida International University, and also her
CIBER staff: Sonia, Nathalie, and Sara-Michelle. Most importantly though, Mary Ann
thanks coauthor Steve McShane for his tireless efforts. Finally, Mary Ann would like to
thank her family, starting with the immediate ones, Emma, Zack, Googun, Chloe, Lucky,
and Blue. She would also like to thank John, Rhoda, Lauren, Lindsay, and Christen. She
also acknowledges the critical role that some very special people play in her life: Janet, Peter
M., Bill, Karen, Alan, Danny, Peter W., Letty D., John D, CEK and Jeff, Damian, Debra,
Mary T, Linda C., and Susan RW. Thanks to you all!
supporting the learning process
AN INTERNATIONAL AUTHOR DEBATING POINTS
TEAM FOR THE GLOBAL Debating Point boxes help students to think critically and
EMPLOYEE to recognize that even seemingly obvious ideas have logical
counterarguments. Debating Points also raise the bar by
Drawing on their extensive mcs62589_ch01_002-029.indd Page 24 08/11/13 4:36 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
One of the core anchors of organizational behavior is that Another concern is that managers don’t view organizational
Australia and Singapore and gives talks knowledge must be built on a solid foundation of scientifically research as particularly relevant to the issues they face.93 This
based research. This evidence-based management (EBM) partly occurs because academic journals usually set very high
each year to schools throughout Asia approach particularly embraces scientific methods—relevant
measures, appropriate sampling, systematic experimental de-
standards for studies, requiring uncontaminated, quantifiable
measures in environments that control for other factors. But
sign, and the like—because they produce more valid theories to managers do not operate in such pristine conditions. Their
and North America. As Director of guide management decisions. Scholars also advise managers to world is much more complex, with more obscure indicators of
become more aware of these well-studied cause-effect princi- key variables. One indicator of this research–practice gap is
the Center for International Business ples, and to use diagnostic tools (such as surveys and check-
lists) to effectively apply those principles in the workplace.
that most organizational studies are correlational, whereas
managers typically require knowledge of behavioral interven-
Invariably, supporters of the evidence-based management tions. Only about 2 percent of organizational studies are real-world
Education, Mary Ann Von Glinow movement contrast this systematic approach with reliance on interventions.94
management fads, hyped consulting, or untested personal men- A third critique of the EBM movement is that the systematic
xxii
global connections 2.1 REAL-WORLD
Working with High Power Distance
EXAMPLES
in China97 BRING OB TO LIFE
As the only Westerner in a 50-employee start-up winery in Every chapter is filled with examples
China, Emilie Bourgois soon noticed that Chinese managers
seemed to use their power more directly than did European to make OB knowledge more
or American bosses. “I was surprised to see that taking the
initiative most of the time was seen as rude and as a failure to
meaningful and reflect the relevance
respect the executives’ authority,” says Bourgois, a public rela- and excitement of this field. Opening
tions professional from Bordeaux, France. “At work, everyone
had to perform well in their own tasks, but permission was vignettes set the stage; captioned
required for anything other than what was expected.”
This high power distance was also apparent in how Chi-
photos depict OB concepts; and
nese managers interacted with staff. “Western-style bosses Global Connections features present
tend to develop a closer relationship with employees,” Bour-
gois suggests. “The hierarchy is much more clearly divided in more detailed vignettes.
Chinese-dominant companies than it is in foreign ones.” Emilie Bourgois, second from right with coworkers at Antal
Bourgois worked well with her colleagues at the Chinese International in Beijing, discovered in an earlier job that
winery, but she acknowledges that “beyond that, there is still Chinese-dominant companies have higher power distance
an important cultural gap.” She is now employed in the Beijing compared with most Western firms.
office of executive recruitment firm Antal International, where
cultural differences seem to be less pronounced because the
company has team building events to improve bonding and
mutual understanding.
SELF-ASSESSMENT
SELF-ASSESSMENTS
HOW MUCH DOES WORK DEFINE YOUR SELF-CONCEPT? Self-assessments are an important
Work is an important part of our lives, but some people in Appendix B at the end of this book to calculate your and engaging part of the active
view it as secondary to other life interests, whereas others results. Remember that there are no right or wrong answers learning process. This edition
view work as central to their identity as individuals. The to these questions. Also, this self-assessment should be
following scale estimates the extent to which you view completed alone so that you can rate yourself honestly features self-assessments in every
work as a central or not-so-central life interest. Read each without concerns of social comparison. Class discussion
of the statements below and decide how accurate each one will focus on the meaning of this scale and its relevance to
chapter, including new scales such
is in describing your focus in life. Then, use the scoring key self-concept and perceptions. as proactive personality, romance
of leadership, work centrality,
Work Centrality Scale
sensing-intuitive type, and learning
PLEASE INDICATE THE EXTENT TO WHICH
YOU AGREE OR DISAGREE WITH EACH goal orientation. Most self-
STATEMENT BELOW IN DESCRIBING STRONGLY MODERATELY SLIGHTLY SLIGHTLY MODERATELY STRONGLY
YOUR FOCUS IN LIFE. DISAGREE DISAGREE DISAGREE AGREE AGREE AGREE assessments are also available
1. The most important things that online in Connect.
happen in life involve work.
Source: R. N. Kanungo, Work Alienation: An Integrative Approach (New York: Praeger, 1982).
xxiii
student and instructor support materials
INSTRUCTOR’S MANUAL
This is one of the few textbooks for which the authors write the Instructor’s Manual, ensuring
that the instructor materials represent the textbook’s content and support instructor needs.
Each chapter includes the learning objectives, glossary of key terms, a chapter synopsis, com-
plete lecture outline with thumbnail images of corresponding PowerPoint slides, and suggested
answers to the end-of-chapter discussion questions. Also included are teaching notes for the
chapter case(s), team exercises, and self-assessments. The Instructor’s Manual also provides
complete teaching notes for the additional cases.
Student Supplements
Students can access self-graded quizzes and chapter review materials.
xxiv
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FIN
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