Case Study
coL27660_fm_i-1.indd i 11/07/17 02:56 PM
JASON A. COLQUITT
University of Georgia
JEFFERY A. LEPINE
Arizona State University
MICHAEL J. WESSON
Texas A&M University
ORGANIZATIONAL
BEHAVIOR
Improving Performance and
Commitment in the Workplace
Sixth Edition
Final PDF to printer
coL27660_fm_i-1.indd ii 11/07/17 02:56 PM
ORGANIZATIONAL BEHAVIOR: IMPROVING PERFORMANCE AND COMMITMENT
IN THE WORKPLACE, SIXTH EDITION
Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2019 by
McGraw-Hill Education. All rights reserved. Printed in the United States of America. Previous
editions © 2017, 2015, and 2013. No part of this publication may be reproduced or distributed in
any form or by any means, or stored in a database or 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 the United States.
This book is printed on acid-free paper.
1 2 3 4 5 6 7 8 9 LWI 21 20 19 18
ISBN 978-1-259-92766-9
MHID 1-259-92766-0
Portfolio Manager: Michael Ablassmeir
Lead Product Developer: Kelly Delso
Senior Product Developer: Kelly I. Pekelder
Directors of Development: Rose Koos and
Meghan Campbell
Executive Marketing Manager: Debbie Clare
Content Project Managers: Melissa M. Leick,
Keri Johnson, Karen Jozefowicz
Buyer: Sandy Ludovissy
Design: Egzon Shaqiri
Content Licensing Specialist: Ann Marie Jannette
Cover Image: ©Hidden Figures/Twentieth Century
Fox Film Corporation/Photofest
Compositor: SPi Global
All 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 Data
Names: Colquitt, Jason, author. | LePine, Jeffery A., author. | Wesson,
Michael J., author.
Title: Organizational behavior: improving performance and commitment in the
workplace / Jason A Colquitt, Jeffery A LePine, Michael J. Wesson.
Description: Sixth Edition. | Dubuque : McGraw-Hill Education, 2018. |
Revised edition of the authors’ Organizational behavior, [2016]
Identifiers: LCCN 2017048454 | ISBN 9781259927669 (hardback : alk. paper)
Subjects: LCSH: Organizational behavior. | Personnel management. | Strategic
planning. | Consumer satisfaction. | Job satisfaction. | BISAC: BUSINESS &
ECONOMICS / Organizational Behavior.
Classification: LCC HD58.7 .C6255 2018 | DDC 658.3—dc23
LC record available at https://lccn.loc.gov/2017048454
The Internet addresses listed in the text were accurate at the time of publication. The inclusion
of a website does not indicate an endorsement by the authors or McGraw-Hill Education, and
McGraw-Hill Education does not guarantee the accuracy of the information presented at these sites.
mheducation.com/highered
Final PDF to printer
coL27660_fm_i-1.indd iii 11/07/17 02:56 PM
To Catherine, Cameron, Riley, and Connor, and also to Mom, Dad,
Alan, and Shawn. The most wonderful family I could imagine, two
times over.
–J.A.C.
To Marcie, Izzy, and Eli, who support me and fill my life with meaning
and joy.
–J.A.L.
To Liesl and Dylan: Their support in all I do is incomparable. They
are my life and I love them both. To my parents: They provide a
foundation that never wavers.
–M.J.W.
Dedication
Final PDF to printer
iv
coL27660_fm_i-1.indd iv 11/07/17 02:56 PM
JASON A. COLQUITT
Jason A. Colquitt is the William H. Willson Distinguished Chair in the Department of
Management at the University of Georgia’s Terry College of Business. He received his PhD
from Michigan State University’s Eli Broad Graduate School of Management and earned his
BS in psychology from Indiana University. He has taught organizational behavior and human
resource management at the undergraduate, masters, and executive levels and has also taught
research methods at the doctoral level. He has received awards for teaching excellence at the
undergraduate, masters, and executive levels.
Jason’s research interests include organizational justice, trust, team effectiveness, and per-
sonality influences on task and learning performance. He has published more than 40 articles
on these and other topics in Academy of Management Journal, Academy of Management Review,
Journal of Applied Psychology, Organizational Behavior and Human Decision Processes, and
Personnel Psychology. He recently served as editor-in-chief for Academy of Management Journal
and has served on a number of editorial boards, including Academy of Management Journal,
Academy of Management Review, Administrative Science Quarterly, Journal of Applied Psychology,
Organizational Behavior and Human Decision Processes, and Personnel Psychology. He is a recip-
ient of the Society for Industrial and Organizational Psychology’s Distinguished Early Career
Contributions Award and the Cummings Scholar Award for early to mid-career achievement,
sponsored by the Organizational Behavior division of the Academy of Management. He was
also elected to be a representative-at-large for the Organizational Behavior division.
Jason enjoys spending time with his wife, Catherine, and three sons, Cameron, Riley,
and Connor. His hobbies include playing basketball, playing the trumpet, watching movies,
and rooting on (in no particular order) the Pacers, Colts, Cubs, Spartans, Gators, Hoosiers, and
Bulldogs.
JEFFERY A. LEPINE
Jeffery A. LePine is the PetSmart Chair in Leadership in the Department of Management
at Arizona State University’s W.P. Carey School of Business. He received his PhD in orga-
nizational behavior from the Eli Broad Graduate School of Management at Michigan State
University. He also earned an MS in management from Florida State University and a BS in
finance from the University of Connecticut. He has taught organizational behavior, human
resource management, and management of groups and teams at undergraduate and graduate
levels. He has also delivered courses to doctoral students in research methods, meta-analysis,
scale development, and human resource management. He received the Outstanding Doctoral
Professor Award from the W.P. Carey School of Business for his teaching and mentoring of
doctoral students and his work as PhD program director.
Jeff’s research interests include team functioning and effectiveness, individual and team
adaptation, citizenship behavior, voice, employee engagement, and occupational stress. He
has published more than 30 articles on these and other topics in Academy of Management
Journal, Academy of Management Review, Journal of Applied Psychology, Organizational
Behavior and Human Decision Processes, Personnel Psychology, and Journal of Management.
He has served as associate editor of Academy of Management Review and Journal of Applied
Psychology. He has also served on the editorial boards of Academy of Management Journal,
About the Authors
Courtesy of Jason Colquitt
Courtesy of Jeffrey A. LePine
Final PDF to printer
v
coL27660_fm_i-1.indd v 11/07/17 02:56 PM
A B O U T T H E A U T H O R S
Academy of Management Review, Journal of Applied Psychology, Organizational Behavior
and Human Decision Processes, Personnel Psychology, Journal of Management, Journal of
Organizational Behavior, and Journal of Occupational and Organizational Psychology. He is a
recipient of the Society for Industrial and Organizational Psychology’s Distinguished Early
Career Contributions Award and the Cummings Scholar Award for early to mid-career achieve-
ment, sponsored by the Organizational Behavior division of the Academy of Management.
He was also elected to the Executive Committee of the Human Resource Division of the
Academy of Management. Prior to earning his PhD, Jeff was an officer in the U.S. Air Force.
Jeff spends most of his free time with his wife, Marcie, daughter, Izzy, and son, Eli. He also
enjoys playing guitar, hiking and mountain biking, working on his growing collection of clas-
sic Pontiacs, and serving as the caretaker of his family’s desert hideaway, tentatively called
the Goat Farm.
MICHAEL J. WESSON
Michael J. Wesson is an associate professor in the Management Department at Texas A&M
University’s Mays Business School. He received his PhD from Michigan State University’s
Eli Broad Graduate School of Management. He also holds an MS in human resource man-
agement from Texas A&M University and a BBA from Baylor University. He has taught orga-
nizational behavior and human resource management–based classes at all levels but currently
spends most of his time teaching Mays MBAs, EMBAs, and executive development at Texas
A&M. He was awarded Texas A&M’s Montague Center for Teaching Excellence Award.
Michael’s research interests include organizational justice, leadership, organizational
entry (employee recruitment, selection, and socialization), person–organization fit, and com-
pensation and benefits. His articles have been published in journals such as Journal of Applied
Psychology, Personnel Psychology, Academy of Management Review, and Organizational Behavior
and Human Decision Processes. He has served on several editorial boards and has been an ad
hoc reviewer for many others. He is active in the Academy of Management and the Society
for Industrial and Organizational Psychology. Prior to returning to school, Michael worked
as a human resources manager for a Fortune 500 firm. He has served as a consultant to the
automotive supplier, health care, oil and gas, and technology industries in areas dealing with
recruiting, selection, onboarding, compensation, and turnover.
Michael spends most of his time trying to keep up with his wife, Liesl, and son, Dylan. He
is a self-admitted food and wine snob, home theater aficionado, and college sports addict.
(Gig ’em Aggies!)
Courtesy of Michael J. Wesson
Final PDF to printer
vi
coL27660_fm_i-1.indd vi 11/07/17 02:56 PM
Why did we decide to write this text? Well, for starters, organizational behavior (OB) remains
a fascinating topic that everyone can relate to (because everyone either has worked or is
going to work in the future). What makes people effective at their job? What makes them
want to stay with their employer? What makes work enjoyable? Those are all fundamental
questions that organizational behavior research can help answer. However, our desire to write
this text also grew out of our own experiences (and frustrations) teaching OB courses using
other texts. We found that students would end the semester with a common set of questions
that we felt we could answer if given the chance to write our own text. With that in mind,
Organizational Behavior: Improving Performance and Commitment in the Workplace was writ-
ten to answer the following questions.
DOES ANY OF THIS STUFF REALLY MATTER?
Organizational behavior might be the most relevant class any student ever takes, but that
doesn’t always shine through in OB texts. The introductory section of our text contains two
chapters not included in other texts: Job Performance and Organizational Commitment. Being
good at one’s job and wanting to stay with one’s employer are obviously critical concerns
for employees and managers alike. After describing these topics in detail, every remaining
chapter in the text links that chapter’s content to performance and commitment. Students
can then better appreciate the practical relevance of organizational behavior concepts.
IF THAT THEORY DOESN’T WORK, THEN WHY IS IT IN
THE TEXT?
In putting together this text, we were guided by the question, “What would OB texts look
like if all of them were first written now, rather than decades ago?” We found that many
of the organizational behavior texts on the market include outdated (and indeed, scientifi-
cally disproven!) models or theories, presenting them sometimes as fact or possibly for the
sake of completeness or historical context. Our students were always frustrated by the fact
that they had to read about, learn, and potentially be tested on material that we knew to be
wrong. Although historical context can be important at times, we believe that focusing on
so-called evidence-based management is paramount in today’s fast-paced classes. Thus, this
text includes new and emerging topics that others leave out and excludes flawed and outdated
topics that some other texts leave in.
HOW DOES ALL THIS STUFF FIT TOGETHER?
Organizational behavior is a diverse and multidisciplinary field, and it’s not always easy to
see how all its topics fit together. Our text deals with this issue in two ways. First, all of the
chapters in our text are organized around an integrative model that opens each chapter (see
the back of the text). That model provides students with a road map of the course, showing
them where they’ve been and where they’re going. Second, our chapters are tightly focused
around specific topics and aren’t “grab bag–ish” in nature. Our hope is that students (and
instructors) won’t ever come across a topic and think, “Why is this topic being discussed in
this chapter?”
Preface
Final PDF to printer
vii
coL27660_fm_i-1.indd vii 11/07/17 02:56 PM
P R E F A C E
DOES THIS STUFF HAVE TO BE SO DRY?
Research on motivation to learn shows that students learn more when they have an intrinsic
interest in the topic, but many OB texts do little to stimulate that interest. Put simply, we
wanted to create a text that students enjoy reading. To do that, we used a more informal, con-
versational style when writing the text. We also tried to use company examples that students
will be familiar with and find compelling. Finally, we included insert boxes, self-assessments,
and exercises that students should find engaging (and sometimes even entertaining!).
NEW AND IMPROVED COVERAGE
• Chapter 1: What Is OB?—This chapter now opens with a wraparound case on IKEA.
The case describes the personality of the company’s founder, Ingvar Kamprad, as well
as the values at play in the corporate culture. The case also describes some of the prac-
tices IKEA uses to maximize job satisfaction and motivation, along with some of its
corporate social responsibility initiatives. The OB at the Bookstore selection has been
changed to How to Have a Good Day. This book describes how research in psychology,
neuroscience, and behavioral economics can be used to improve employee attitudes
and behaviors.
• Chapter 2: Job Performance—This chapter features a new wraparound case on General
Electric (GE), which describes how and why the company’s approach to managing
employee job performance has changed. With a new emphasis on creativity and rapid
innovation, GE abandoned formal annual job performance evaluations. Our OB at the
Bookstore feature has been changed to Mastering Civility. This book overviews implica-
tions and costs of incivility in the workplace, and outlines steps that employees and
managers can take to manage this form of counterproductive behavior. Our new OB on
Screen feature, Sully, provides a glimpse of extraordinary job performance as well as
the dilemma of distinguishing job performance behavior from results.
• Chapter 3: Organizational Commitment—PwC serves as the wraparound case in this edi-
tion, spotlighting the things the company does to build loyalty among Millennials. The
case also describes studies that PwC performed on what Millennials value at work, and
how those studies match the findings of scientific research. One key finding was that
Millennials value leisure time more than prior generations. That insight triggered a new
initiative at PwC where managers work with employees to chart out a schedule that
suits them.
• Chapter 4: Job Satisfaction—This chapter’s wraparound case now highlights Publix,
the Florida-based supermarket chain. Publix does a number of things to keep their
employees satisfied, including promoting from within, paying above market wages, and
reimbursing tuition. The case also focuses on Publix’s employee stock ownership plan
and what owning a piece of the company can do for job satisfaction. The OB at the
Bookstore selection is now The Power of Meaning, which contrasts the pursuit of short-
term happiness with the pursuit of long-term meaning. The book describes a number of
ways to pursue meaning, including work that promotes a purpose. The OB on Screen
feature examines the subjective nature of job satisfaction. Paterson depicts a bus driver
who has a seemingly boring, repetitive job. Yet he winds up satisfied because it affords
him free time for his passion in life: poetry.
Final PDF to printer
coL27660_fm_i-1.indd viii 11/07/17 02:56 PM
viii P R E F A C E
• Chapter 5: Stress—Honeywell is now featured in the wraparound case for this chapter.
Honeywell has grown and evolved through mergers and acquisitions, and this has placed
a variety of stressful demands on employees. The case describes how the company’s
response to a slowdown in one of its businesses created even more stress. Our OB on
Screen feature has been changed to Deepwater Horizon. The film provides insight into
the nature of role conflict and how it contributed to the the largest marine oil spill in
U.S. history. The bestselling book, Work Without Stress, is now our OB at the Bookstore
feature. The authors argue that rumination is responsible for turning demands into
stress, and thus, the whole key to managing stress, is to stop ruminating. The authors
provide many suggestions for putting this rather provocative idea into practice.
• Chapter 6: Motivation—This chapter now opens with a wraparound case on Google. The
case describes exactly how Google evaluates and compensates its employees so that it
can motivate them. The case also describes Google’s philosophy on “star” employees,
including how to retain talent that contributes fundamentally more than the norm. The
OB on Screen feature focuses on psychological empowerment using Star Trek Beyond,
where Captain Kirk struggles with purpose given the monotony of his job and the infi-
nite vastness of space. The OB at the Bookstore focuses on Deep Work, a form of work
that requires a distraction-free state that pushes the limits of one’s ability. The book
argues that deep work is increasingly vital in a knowledge economy, but several factors
conspire to limit the motivation to perform such work.
• Chapter 7: Trust, Justice, and Ethics—SeaWorld serves as the wraparound case for the
revised chapter. The case spotlights the controversies over the park’s orca shows that
have caused it to phase out those attractions. The case also describes how corporate
ethics are often shaped by a combination of public pressure and government interven-
tion. The Founder is the OB on Screen selection for the chapter. The film details how
Ray Kroc wrested control over McDonald’s from the brothers who founded the com-
pany, including performing actions that the brothers deemed unethical. The OB at the
Bookstore selection is now Radical Candor, which describes how trust can be cultivated
by a combination of caring personally, but also challenging directly. Of course, the lat-
ter component is difficult for many managers, so the book provides some specific tips
for improvement.
• Chapter 8: Learning and Decision Making—Bridgewater Associates and the highly
unique “radical transparency” philosophy established by hedge fund manager and
founder Ray Dalio serves as the wraparound case in this edition. The case describes
how Bridgewater is attempting, by using decisions made by people in the organization
paired with organizational “principles,” to develop a software system that will make the
majority of management decisions after Dalio is gone. The OB on Screen feature now
focuses on The Big Short, highlighting how decision-making errors were at the core of
the financial crash of 2008. A new OB at the Bookstore feature highlights Peak and
the development of expertise through deliberate practice. The chapter also includes a
number of research updates as well as several new company examples.
• Chapter 9: Personality and Cultural Values—This chapter’s wraparound case is now the
Chicago Cubs. The case describes the personality traits that Theo Epstein, the club’s
president, looked for to turn around the losing history of the franchise. La La Land is
Final PDF to printer
ix
coL27660_fm_i-1.indd ix 11/07/17 02:56 PM
P R E F A C E
the chapter’s OB on Screen selection, with the film spotlighting a musician who pos-
sesses high openness to experience but low conscientiousness. He’s therefore talented
with his music, but finds it difficult to hold down a job. The OB at the Bookstore selec-
tion is Grit, which focuses on a personality trait that represents a combination of pas-
sion and perseverance. It is the “gritty” employees that remain resilient and determined
in the face of adversity.
• Chapter 10: Ability—This chapter’s wraparound case now features the Federal Bureau of
Investigation (FBI). The case describes how various jobs at the FBI require unique abil-
ities, and how the organization ensures that agents possess these abilities when they’re
hired. The case also discusses how the FBI introduced annual physical fitness testing
to deal with the potential erosion of physical abilities after agents are hired. Humility
Is the New Smart is now our OB at the Bookstore feature. The authors argue that jobs
are quickly being replaced by smart machines, and following from this, the definition
of what it means to be smart is also changing. Specifically, the authors propose that
being smart now involves interpersonal capacities, such as humility and putting others
first, that promote cooperation and collaborative efforts. The new movie for our OB on
Screen feature is Hidden Figures. This film provides vivid real-world examples of vari-
ous quantitative abilities, and their role in the U.S. space program during the 1960s.
• Chapter 11: Teams: Characteristics and Diversity—Whole Foods serves as the new wrap-
around case for this chapter. The case discusses how Whole Foods relies on teams,
which are largely self-managed, at all levels of the organization. The case describes how
existing teams are involved in the hiring of new team members. The OB on Screen fea-
ture now discusses the movie Arrival, which provides excellent examples of task, goal,
and outcome interdependence. Inclusion is now discussed in our OB at the Bookstore
feature. The author of this book describes how a special type of parallel team, the
employee resource group or ERG, provides support and guidance to members of their
communities who may be dealing with diversity- or inclusion-related challenges.
• Chapter 12: Teams: Processes and Communication—This chapter includes a new wrap-
around case featuring Microsoft. Microsoft responded to an erosion of their position
in the tech industry by restructuring around multidisciplinary teams. The case focuses
on how Microsoft redesigned two buildings to inspire creativity and encourage col-
laboration among team members. The OB on Screen feature now centers on the movie
Spotlight. This film illustrates how boundary-spanning activities are crucial to the effec-
tiveness of a team of investigative reporters. Our OB at the Bookstore feature has been
changed to Smart Collaboration. This book addresses the challenge of managing teams
in the professional services industry, where highly specialized employees are typically
not keen on collaborating.
• Chapter 13: Leadership: Power and Negotiation—This chapter features a new wraparound
case on Zappos’s move toward “holocracy”—a self-management oriented organizational
structure. Tony Hsieh (CEO) expects this move to get rid of organizational politics and
take away organizational forms of power, which should allow Zappos employees to
manage themselves and make decisions for the right reasons. It isn’t going well. The
chapter has been updated with new research including our decision to move “exchange”
to a lower tier of effectiveness as an influence tactic based on a new meta-analysis.
Final PDF to printer
coL27660_fm_i-1.indd x 11/07/17 02:56 PM
x P R E F A C E
The new OB on Screen feature uses Bridge of Spies to illustrate what might lead one to
take a competing style of conflict resolution in a negotiation. Pre-suasion is the new OB
at the Bookstore feature, which focuses on the best way to set things up to be able to
influence others.
• Chapter 14: Leadership: Styles and Behaviors—The chapter begins with a new wrap-
around case featuring the consistent Mary Barra of General Motors. The opener and
the case highlight Barra’s push to make GM’s culture shift from slow to fast. Several
examples, including Barra’s push toward her vision of autonomous cars, highlight her
transformational leadership style. A new OB at the Bookstore feature highlights Sydney
Finkelstein’s Superbosses, which is a unique book that ends up being more about trans-
formational leadership than it lets on. The new OB on Screen is The Martian, which
gives students a chance to utilize the time-driven model of leadership to see if the
leader made the correct decision in the movie. The chapter includes a number of new
research findings as well as updated company examples, including organizations such
as American Apparel, Chobani, and GoPro.
• Chapter 15: Organizational Structure—Apple is the focus of this chapter’s new wraparound
case that highlights the company’s dogged determination to stay with the functional
structure that has served them well for so long amid lots of pressure to change. A number
of new company examples such as Facebook, Chipotle, and Cargill have been added as
well as the introduction of “Dunbar’s number” (150), which a number of companies pay
attention to when it comes to size and structure. A new OB at the Bookstore features
The Silo Effect, which illustrates the trials and tribulations of how organizational structure
(and culture) plays havoc with our perceptions and ability to communicate inside an
organization.
• Chapter 16: Organizational Culture—This chapter has a new wraparound case that
focuses on both Delta and United. The case spotlights the differences in the cultures at
the two carriers—differences that can explain specific actions and their larger reputa-
tions. The OB at the Bookstore feature now highlights Originals, a book that describes
the kinds of people who “go against the grain” by performing creative acts. Many orga-
nizations try to foster a culture that encourages such originality. The OB on Screen
selection is now The Circle, a film that spotlights a faux Silicon Valley corporation
whose work is ethically murky. The film provides a vivid example of several elements
of organizational culture. A number of new company examples such as Wells Fargo,
Cirque du Soleil, and Whataburger have been added.
Final PDF to printer
xi
coL27660_fm_i-1.indd xi 11/07/17 02:56 PM
An enormous number of persons played a role in helping us put this text together. Truth be
told, we had no idea that we would have to rely on and put our success in the hands of so
many different people! Each of them had unique and useful contributions to make toward the
publication of this text, and they deserve and thus receive our sincere gratitude.
We thank Michael Ablassmeir, our executive editor, for his suggestions and guidance on
the last four editions, and John Weimeister for filling that same role with earlier editions.
We are thankful to both for allowing us to write the text that we wanted to write. Thanks
also go out to Kelly Pekelder, our product developer, for keeping us on track and being such
a pleasure to work with during this revision. We also owe much gratitude to our marketing
manager, Debbie Clare. We also would like to thank Melissa Leick, Egzon Shaqiri, and Ann
Marie Jannette at McGraw-Hill, as they are the masterminds of much of how the text actu-
ally looks; their work and effort were spectacular. A special thanks also goes out to Jessica
Rodell (University of Georgia) and Megan Endres (Eastern Michigan University) for their
assistance with our CONNECT content.
We would also like to thank our students at the undergraduate, masters, and executive
levels who were taught with this text for their constructive feedback toward making it more
effective in the classroom. Thanks also to our PhD students for allowing us to take time out
from research projects to focus on this effort.
Finally, we thank our families, who gave up substantial amounts of time with us and put up
with the stress that necessarily comes at times during an endeavor such as this.
Jason Colquitt
Jeff LePine
Michael Wesson
Acknowledgments
Final PDF to printer
xii
coL27660_fm_i-1.indd xii 11/07/17 02:56 PM
OB ON SCREEN
OB AT THE BOOKSTORE
Text Features: OB Insert Boxes
“ Very comprehensive. Well laid-out. Interesting. Good mix
of theoretical material and practical insights.”
This feature uses memorable scenes
from recent films to bring OB concepts
to life. Films like Hidden Figures, The
Founder, La La Land, The Martian,
Sully, and The Big Short offer rich, vivid
examples that grab the attention of
students.
This feature links the content in each
chapter to a mainstream, popular
business book. Books like Originals,
The Power of Meaning, Grit, and Peak
represent the gateway to OB for many
students. This feature helps them put
those books in a larger context.
©Moviestore collection Ltd/Alamy
©Roberts Publishing Services
Final PDF to printer
xiii
coL27660_fm_i-1.indd xiii 11/07/17 02:56 PM
OB INTERNATIONALLY
OB ASSESSMENTS
This feature helps students see where
they stand on key OB concepts in each
chapter. Students gain insights into their
personality, their emotional intelligence,
their style of leadership, and their ability
to cope with stress, which can help
them understand their reactions to the
working world.
“ The material presented in this chapter is well balanced. Again,
the tables, charts, and figures help to organize the material for
students.”
Changes in technology, communications,
and economic forces have made business
more global and international than ever.
This feature spotlights the impact of glo-
balization on the organizational behavior
concepts described in this text. It describes
cross-cultural differences in OB theories,
how to apply them in international corpora-
tions, and how to use OB to manage cultural
diversity in the workplace.
©iChzigo/Shutterstock
©Namas Bhojani/AP Images
Final PDF to printer
coL27660_fm_i-1.indd xiv 11/07/17 02:56 PM
■ Connect content is authored by the world’s best subject
matter experts, and is available to your class through a
simple and intuitive interface.
■ The Connect eBook makes it easy for students to
access their reading material on smartphones
and tablets. They can study on the go and don’t
need internet access to use the eBook as a
reference, with full functionality.
■ Multimedia content such as videos, simulations,
and games drive student engagement and critical
thinking skills.
©McGraw-Hill Education
■ Connect’s assignments help students
contextualize what they’ve learned through
application, so they can better understand the
material and think critically.
■ Connect will create a personalized study path
customized to individual student needs through
SmartBook®.
■ SmartBook helps students study more efficiently
by delivering an interactive reading experience
through adaptive highlighting and review.
McGraw-Hill Connect® is a highly reliable, easy-to-
use homework and learning management solution
that utilizes learning science and award-winning
adaptive tools to improve student results.
73% of instructors
who use Connect
require it; instructor
satisfaction increases
by 28% when Connect
is required.
Homework and Adaptive Learning
Quality Content and Learning Resources
Over 7 billion questions have been
answered, making McGraw-Hill
Education products more intelligent,
reliable, and precise.
Using Connect improves retention
rates by 19.8%, passing rates by
12.7%, and exam scores by 9.1%.
Final PDF to printer
coL27660_fm_i-1.indd xv 11/07/17 02:56 PM
More students earn
As and Bs when they
use Connect.
www.mheducation.com/connect
©Hero Images/Getty Images
■ Connect Insight® generates easy-to-read
reports on individual students, the class as a
whole, and on specific assignments.
■ The Connect Insight dashboard delivers data
on performance, study behavior, and effort.
Instructors can quickly identify students who
struggle and focus on material that the class
has yet to master.
■ Connect automatically grades assignments
and quizzes, providing easy-to-read reports
on individual and class performance.
■ Connect integrates with your LMS to provide single sign-on and automatic syncing
of grades. Integration with Blackboard®, D2L®, and Canvas also provides automatic
syncing of the course calendar and assignment-level linking.
■ Connect offers comprehensive service, support, and training throughout every
phase of your implementation.
■ If you’re looking for some guidance on how to use Connect, or want to learn
tips and tricks from super users, you can find tutorials as you work. Our Digital
Faculty Consultants and Student Ambassadors offer insight into how to achieve
the results you want with Connect.
Trusted Service and Support
Robust Analytics and Reporting
Final PDF to printer
xvi
coL27660_fm_i-1.indd xvi 11/07/17 02:56 PM
Additional Resources
PowerPoint® Presentation Slides
The PowerPoint presentation slides are designed to help instructors deliver course content in a
way that maintains students’ engagement and attention. The slides include a Notes section that
offers specific tips for using the slides (and the text). The Notes also provide bridges to many of
the resources in the Instructor’s Manual, including innovative teaching tips and suggestions for
using OB on Screen. Finally, the PowerPoints also include bonus OB Assessments for instructors
who want additional assessments for their teaching.
Instructor’s Manual
Prepared by Jason Colquitt, this manual was developed to help you get the most out of the text
in your own teaching. It contains an outline of the chapters, innovative teaching tips to use with
your students, and notes and answers for the end-of-chapter materials. It also provides a guide for
the assessments in the text, and suggestions for using the OB on Screen feature. The manual also
contains additional cases, exercises, and OB on Screen selections from earlier editions of the text,
giving you extra content to use in your teaching.
Final PDF to printer
xvii
coL27660_fm_i-1.indd xvii 11/07/17 02:56 PM
Brief Contents
PART 1 INTRODUCTION TO ORGANIZATIONAL
BEHAVIOR 3
CHAPTER 1 4
What Is Organizational Behavior?
CHAPTER 2 28
Job Performance
CHAPTER 3 60
Organizational Commitment
PART 2 INDIVIDUAL MECHANISMS 91
CHAPTER 4 92
Job Satisfaction
CHAPTER 5 124
Stress
CHAPTER 6 160
Motivation
CHAPTER 7 194
Trust, Justice, and Ethics
CHAPTER 8 232
Learning and Decision Making
PART 3 INDIVIDUAL CHARACTERISTICS 263
CHAPTER 9 264
Personality and Cultural Values
CHAPTER 10 304
Ability
PART 4 GROUP MECHANISMS 335
CHAPTER 11 336
Teams: Characteristics and Diversity
CHAPTER 12 374
Teams: Processes and Communication
CHAPTER 13 410
Leadership: Power and Negotiation
CHAPTER 14 442
Leadership: Styles and Behaviors
PART 5 ORGANIZATIONAL MECHANISMS 479
CHAPTER 15 480
Organizational Structure
CHAPTER 16 508
Organizational Culture
INTEGRATIVE CASES 540
GLOSSARY/SUBJECT INDEX 549
NAME INDEX 568
COMPANY INDEX 583
Final PDF to printer
xviii
coL27660_fm_i-1.indd xviii 11/07/17 02:56 PM
Table of Contents
PART 1 INTRODUCTION TO ORGANIZATIONAL
BEHAVIOR 3
CHAPTER 1 4
What Is Organizational Behavior?
What Is Organizational Behavior? 6
Organizational Behavior Defined 6
An Integrative Model of OB 7
Does Organizational Behavior Matter? 9
Building a Conceptual Argument 10
Research Evidence 12
So What’s So Hard? 14
How Do We “Know” What We Know About Organizational
Behavior? 16
Summary: Moving Forward in This Book 20
TAKEAWAYS 23
KEY TERMS 23
DISCUSSION QUESTIONS 23
CASE 24
EXERCISE 25
ENDNOTES 26
CHAPTER 2 28
Job Performance
Job Performance 30
What Does It Mean to Be a “Good Performer”? 31
Task Performance 31
Citizenship Behavior 35
Counterproductive Behavior 39
Summary: What Does It Mean to Be a “Good Performer”? 44
Trends Affecting Performance 45
Knowledge Work 45
Service Work 45
Application: Performance Management 46
Management by Objectives 46
Behaviorally Anchored Rating Scales 47
360-Degree Feedback 48
Forced Ranking 48
Social Networking Systems 49
TAKEAWAYS 49
KEY TERMS 50
DISCUSSION QUESTIONS 50
CASE 51
EXERCISE 52
ENDNOTES 52
CHAPTER 3 60
Organizational Commitment
Organizational Commitment 62
What Does It Mean to Be “Committed”? 63
Types of Commitment 63
Withdrawal Behavior 69
Summary: What Does It Mean to Be “Committed”? 75
Trends That Affect Commitment 75
Diversity of the Workforce 75
The Changing Employee–Employer Relationship 77
Application: Commitment Initiatives 79
TAKEAWAYS 81
KEY TERMS 82
DISCUSSION QUESTIONS 82
CASE 83
EXERCISE 84
ENDNOTES 85
PART 2 INDIVIDUAL MECHANISMS 91
CHAPTER 4 92
Job Satisfaction
Job Satisfaction 94
Why Are Some Employees More Satisfied Than Others? 94
Value Fulfillment 94
Satisfaction with the Work Itself 98
Mood and Emotions 104
Final PDF to printer
xix
coL27660_fm_i-1.indd xix 11/07/17 02:56 PM
T A B L E O F C O N T E N T S
Summary: Why Are Some Employees More Satisfied
Than Others? 109
How Important Is Job Satisfaction? 109
Life Satisfaction 111
Application: Tracking Satisfaction 113
TAKEAWAYS 115
KEY TERMS 116
DISCUSSION QUESTIONS 116
CASE 117
EXERCISE 117
ENDNOTES 118
CHAPTER 5 124
Stress
Stress 126
Why Are Some Employees More “Stressed” Than Others? 127
Types of Stressors 128
How Do People Cope with Stressors? 132
The Experience of Strain 135
Accounting for Individuals in the Stress Process 137
Summary: Why Are Some Employees More “Stressed”
Than Others? 139
How Important Is Stress? 140
Application: Stress Management 143
Assessment 143
Reducing Stressors 143
Providing Resources 145
Reducing Strains 146
TAKEAWAYS 149
KEY TERMS 149
DISCUSSION QUESTIONS 150
CASE 150
EXERCISE 151
ENDNOTES 152
CHAPTER 6 160
Motivation
Motivation 162
Why Are Some Employees More Motivated Than
Others? 164
Expectancy Theory 164
Goal Setting Theory 170
Equity Theory 173
Psychological Empowerment 177
Summary: Why Are Some Employees More Motivated
Than Others? 180
How Important Is Motivation? 180
Application: Compensation Systems 182
TAKEAWAYS 185
KEY TERMS 185
DISCUSSION QUESTIONS 186
CASE 186
EXERCISE 187
ENDNOTES 188
CHAPTER 7 194
Trust, Justice, and Ethics
Trust, Justice, and Ethics 196
Why Are Some Authorities More Trusted Than Others? 197
Trust 197
Justice 203
Ethics 208
Summary: Why Are Some Authorities More Trusted
Than Others? 215
How Important Is Trust? 217
Application: Social Responsibility 219
TAKEAWAYS 220
KEY TERMS 220
DISCUSSION QUESTIONS 221
CASE 221
EXERCISE 222
ENDNOTES 223
CHAPTER 8 232
Learning and Decision Making
Learning and Decision Making 234
Why Do Some Employees Learn to Make Decisions
Better Than Others? 234
Types of Knowledge 234
Methods of Learning 236
Methods of Decision Making 241
Decision-Making Problems 246
Summary: Why Do Some Employees Learn to Make
Decisions Better Than Others? 251
How Important Is Learning? 253
Application: Training 254
Final PDF to printer
coL27660_fm_i-1.indd xx 11/07/17 02:56 PM
TAKEAWAYS 255
KEY TERMS 255
DISCUSSION QUESTIONS 256
CASE 256
EXERCISE 257
ENDNOTES 258
PART 3 INDIVIDUAL CHARACTERISTICS 263
CHAPTER 9 264
Personality and Cultural Values
Personality and Cultural Values 266
How Can We Describe What Employees Are Like? 266
The Big Five Taxonomy 266
Other Taxonomies of Personality 279
Cultural Values 280
Summary: How Can We Describe What Employees
Are Like? 283
How Important Are Personality and Cultural Values? 285
Application: Personality Tests 287
TAKEAWAYS 291
KEY TERMS 292
DISCUSSION QUESTIONS 292
CASE 293
EXERCISE 294
ENDNOTES 294
CHAPTER 10 304
Ability
Ability 306
What Does It Mean for an Employee to Be “Able”? 307
Cognitive Ability 307
Emotional Ability 313
Physical Ability 318
Summary: What Does It Mean for an Employee
to Be “Able”? 320
How Important Is Ability? 321
Application: Selecting High Cognitive Ability Employees 323
TAKEAWAYS 326
KEY TERMS 326
DISCUSSION QUESTIONS 327
CASE 327
EXERCISE 328
ENDNOTES 329
PART 4 GROUP MECHANISMS 335
CHAPTER 11 336
Teams: Characteristics and Diversity
Team Characteristics and Diversity 338
What Characteristics Can Be Used to Describe Teams? 339
Team Types 339
Variations Within Team Types 342
Team Interdependence 345
Team Composition 349
Summary: What Characteristics Can Be Used
to Describe Teams? 357
How Important Are Team Characteristics? 358
Application: Team Compensation 359
TAKEAWAYS 360
KEY TERMS 360
DISCUSSION QUESTIONS 361
CASE 361
EXERCISE 362
ENDNOTES 364
CHAPTER 12 374
Teams: Processes and Communication
Team Processes and Communication 376
Why Are Some Teams More Than the Sum of Their
Parts? 376
Taskwork Processes 378
Teamwork Proceses 384
Communication 386
Team States 389
Summary: Why Are Some Teams More Than the Sum
of Their Parts? 392
How Important Are Team Processes? 392
Application: Training Teams 395
Transportable Teamwork Competencies 395
Cross-Training 396
Team Process Training 396
Team Building 397
TAKEAWAYS 398
KEY TERMS 398
DISCUSSION QUESTIONS 399
CASE 399
EXERCISE 400
ENDNOTES 402
xx T A B L E O F C O N T E N T S
Final PDF to printer
xxi
coL27660_fm_i-1.indd xxi 11/07/17 02:56 PM
T A B L E O F C O N T E N T S
CHAPTER 13 410
Leadership: Power and Negotiation
Leadership: Power and Negotiation 412
Why Are Some Leaders More Powerful Than Others? 412
Acquiring Power 412
Using Influence 416
Power and Influence in Action 420
Negotiations 426
Summary: Why Are Some Leaders More Powerful
Than Others? 429
How Important Are Power and Influence? 429
Application: Alternative Dispute Resolution 431
TAKEAWAYS 432
KEY TERMS 433
DISCUSSION QUESTIONS 433
CASE 434
EXERCISE 434
ENDNOTES 435
CHAPTER 14 442
Leadership: Styles and Behaviors
Leadership: Styles and Behaviors 444
Why Are Some Leaders More Effective Than Others? 446
Leader Decision-Making Styles 447
Day-to-Day Leadership Behaviors 452
Transformational Leadership Behaviors 456
Summary: Why Are Some Leaders More Effective
Than Others? 461
How Important Is Leadership? 464
Application: Leadership Training 466
TAKEAWAYS 467
KEY TERMS 467
DISCUSSION QUESTIONS 468
CASE 468
EXERCISE 469
ENDNOTES 470
PART 5 ORGANIZATIONAL MECHANISMS 479
CHAPTER 15 480
Organizational Structure
Organizational Structure 482
Why Do Some Organizations Have Different Structures
Than Others? 482
Elements of Organizational Structure 483
Organizational Design 489
Common Organizational Forms 491
Summary: Why Do Some Organizations Have Different
Structures Than Others? 497
How Important Is Structure? 498
Application: Restructuring 500
TAKEAWAYS 501
KEY TERMS 501
DISCUSSION QUESTIONS 502
CASE 502
EXERCISE 503
ENDNOTES 504
CHAPTER 16 508
Organizational Culture
Organizational Culture 510
Why Do Some Organizations Have Different Cultures
Than Others? 510
Culture Components 510
General Culture Types 514
Specific Culture Types 514
Culture Strength 517
Maintaining An Organizational Culture 520
Changing An Organizational Culture 523
Summary: Why Do Some Organizations Have Different
Cultures Than Others? 526
How Important Is Organizational Culture? 527
Application: Managing Socialization 529
TAKEAWAYS 531
KEY TERMS 532
DISCUSSION QUESTIONS 532
CASE 532
EXERCISE 533
ENDNOTES 534
INTEGRATIVE CASES 540
GLOSSARY/SUBJECT INDEX 549
NAME INDEX 568
COMPANY INDEX 583
Final PDF to printer
coL27660_fm_i-1.indd xxii 11/07/17 02:56 PM
Final PDF to printer
coL27660_fm_i-1.indd 1 11/07/17 02:56 PM
ORGANIZATIONAL
BEHAVIOR
Improving Performance and
Commitment in the Workplace
Final PDF to printer
coL27660_ch01_002-027.indd 2 10/11/17 08:38 AM
Final PDF to printer
coL27660_ch01_002-027.indd 3 10/11/17 08:38 AM
1
CHAPTER 1
What Is Organizational Behavior?
CHAPTER 2
Job Performance
CHAPTER 3
Organizational Commitment
P A R T
INTRODUCTION TO
ORGANIZATIONAL
BEHAVIOR
Final PDF to printer
coL27660_ch01_002-027.indd 4 10/11/17 08:38 AM
1
LEARNING GOALS
1.1 What is the definition of “organizational behavior” (OB)?
1.2 What are the two primary outcomes in studies of OB?
1.3 What factors affect the two primary OB outcomes?
1.4 Why might firms that are good at OB tend to be more profitable?
1.5 What is the role of theory in the scientific method?
1.6 How are correlations interpreted?
After reading this chapter, you should be able to answer the following questions:
What Is Organizational
Behavior?
Leadership:
Styles &
Behaviors
Leadership:
Power &
Negotiation
Teams:
Processes &
Communication
Teams:
Characteristics &
Diversity
Organizational
Structure
Organizational
Culture
Stress
Motivation
Trust, Justice,
& Ethics
Organizational
Commitment
Job
Performance
Job
Satisfaction
Learning &
Decision Making
Ability
Personality &
Cultural Values
INDIVIDUAL
CHARACTERISTICS
INDIVIDUAL
CHARACTERISTICS
GROUP
MECHANISMS
GROUP
MECHANISMS
ORGANIZATIONAL
MECHANISMS
ORGANIZATIONAL
MECHANISMS
INDIVIDUAL
OUTCOMES
INDIVIDUAL
OUTCOMES
INDIVIDUAL
MECHANISMS
Final PDF to printer
coL27660_ch01_002-027.indd 5 10/11/17 08:38 AM
IKEA
D
oes the name Ingvar Kamprad ring a bell? What
if I told you he grew up on a farm called Elmtaryd
near the village of Agunnaryd? That’s right—he’s the
founder of Sweden-based IKEA (and now you know what
the letters stand for). IKEA operates 389 stores worldwide,
employing 183,000 employees. Kamprad built his massive
company from the humblest of beginnings. At the age of
five, he began buying boxes of matches in order to sell them
by the book for profit. He founded IKEA in 1943 at the age
of seventeen, using seed money from his father. Kamprad
began by selling knickknacks and trinkets before moving
on to furniture five years later. IKEA expanded beyond Swe-
den in 1963 and opened its first U.S. store in Philadelphia
in 1985.
Kamprad has been described as having the classic entre-
preneur’s personality—highly conscientiousness, highly cre-
ative, but very willing to disagree with the opinions and views
of others. Those traits helped him make a number of inno-
vations, including shipping furniture using “flatpacking”—
where the buyer assembles the finished product. Today,
Kamprad’s company tries to instill specific traits in its
employees and its organizational culture. New hires are
given the “Little IKEA Dictionary” that describes the impor-
tance of humility, heritage, simplicity, equality, togetherness,
and sustainability.
How do such values shape the experience of working
at IKEA? In terms of equality, Lars Petersson, the leader of
IKEA’s Conshohocken, Pennsylvania-based U.S. headquar-
ters, notes that “Hierarchy is not a big Swedish thing . . .
We actually work with trust rather than control.” The com-
pany has also successfully combatted the glass ceiling,
with more than half of senior managerial roles filled by
women. In terms of sustainability, Nabeela Ixtabalan, the
head of human resources, notes “My boss would say, ‘Go
home, you’ve been here too long,’ . . . Here, if you can’t
do your job successfully in a reasonable amount of time,
you’re doing something wrong.” IKEA’s pay philosophy
is also sensitive to the long term. Hourly wages average
$15.45—double the minimum wage—and are indexed to
MIT’s Living Wage Calculator. And part-time employees
qualify for health benefits if they work 20 hours per week.
These and other aspects of life at IKEA explain why it was
recently named one of Fortune’s 100 Best Companies to
Work For.
©Kumar Sriskandan/Alamy
Final PDF to printer
6 C H A P T E R 1 What Is Organizational Behavior?
coL27660_ch01_002-027.indd 6 10/11/17 08:38 AM
W H AT I S O R G A N I Z AT I O N A L B E H AV I O R ?
Before we describe what the field of organizational behavior studies, take a moment to ponder
this question: Who was the single worst coworker you’ve ever had? Picture fellow students who col-
laborated with you on class projects; colleagues from part-time or summer jobs; or peers, subordi-
nates, or supervisors working in your current organization. What did this coworker do that earned
him or her “worst coworker” status? Was it some of the behaviors shown in the right column
of Table 1-1 (or perhaps all of them)? Now take a moment to consider the single best coworker
you’ve ever had. Again, what did this coworker do to earn “best coworker” status—some or most of
the behaviors shown in the left column of Table 1-1?
If you found yourself working alongside the two people profiled in the table, two questions
would be foremost on your mind: “Why does the worst coworker act that way?” and “Why does
the best coworker act that way?” Once you understand why the two coworkers act so differently,
you might be able to figure out ways to interact with the worst coworker more effectively (thereby
making your working life a bit more pleasant). If you happen to be a manager, you might formu-
late plans for how to improve attitudes and behaviors in the unit. Such plans could include how
to screen applicants, train and socialize new organizational members, manage evaluations and
rewards for performance, and deal with conflicts that arise between and among employees. With-
out understanding why employees act the way they do, it’s extremely hard to find a way to change
their attitudes and behaviors at work.
O R GA N I Z AT I O N A L B E H AV I O R D E F I N E D
Organizational behavior (OB) is a field of study devoted to understanding, explaining, and ulti-
mately improving the attitudes and behaviors of individuals and groups in organizations. Scholars
1.1
What is the definition of
“organizational behavior”
(OB)?
TABLE 1-1 The Best of Coworkers, the Worst of Coworkers
THE BEST THE WORST
Have you ever had a coworker who usually
acted this way?
Have you ever had a coworker who usually
acted this way?
Got the job done, without having to be man-
aged or reminded
Did not got the job done, even with a great
deal of hand-holding
Adapted when something needed to be
changed or done differently
Was resistant to any and every form of change,
even when changes were beneficial
Was always a “good sport,” even when bad
things happened at work
Whined and complained, no matter what was
happening
Attended optional meetings or functions to
support colleagues
Optional meetings? Was too lazy to make it to
some required meetings and functions!
Helped new coworkers or people who
seemed to need a hand
Made fun of new coworkers or people who
seemed to need a hand
Felt an attachment and obligation to the
employer for the long haul
Seemed to always be looking for something
else, even if it wasn’t better
Was first to arrive, last to leave Was first to leave for lunch, last to return
The Million-Dollar Question:
Why do these two employees act so differently?
Final PDF to printer
7C H A P T E R 1 What Is Organizational Behavior?
coL27660_ch01_002-027.indd 7 10/11/17 08:38 AM
in management departments of universities and scientists in business organizations conduct
research on OB. The findings from those research studies are then applied by managers or con-
sultants to see whether they help meet “real-world” challenges. OB can be contrasted with two
other courses commonly offered in management departments: human resource management and
strategic management. Human resource management takes the theories and principles studied in
OB and explores the “nuts-and-bolts” applications of those principles in organizations. An OB
study might explore the relationship between learning and job performance, whereas a human
resource management study might examine the best ways to structure training programs to pro-
mote employee learning. Strategic management focuses on the product choices and industry char-
acteristics that affect an organization’s profitability. A strategic management study might examine
the relationship between firm diversification (when a firm expands into a new product segment)
and firm profitability.
The theories and concepts found in OB are actually drawn from a wide variety of disciplines.
For example, research on job performance and individual characteristics draws primarily from
studies in industrial and organizational psychology. Research on satisfaction, emotions, and team
processes draws heavily from social psychology. Sociology research is vital to research on team
characteristics and organizational structure, and anthropology research helps inform the study
of organizational culture. Finally, models from economics are used to understand motivation,
learning, and decision making. This diversity brings a unique quality to the study of OB, as most
students will be able to find a particular topic that’s intrinsically interesting and thought provok-
ing to them.
A N I N T E G R AT I V E M O D E L O F O B
Because of the diversity in its topics and disciplinary roots, it is common for students in an organi-
zational behavior class to wonder, “How does all this stuff fit together?” How does what gets cov-
ered in Chapter 3 relate to what gets covered in Chapter 13? To clarify such issues, this textbook
is structured around an integrative model of OB, shown in Figure 1-1, that’s designed to provide a
roadmap for the field of organizational behavior. The model shows how the topics in the next 15
chapters—represented by the 15 ovals in the model—all fit together. We should stress that there are
other potential ways of combining the 15 topics, and Figure 1-1 likely oversimplifies the connec-
tions among the topics. Still, we believe the model provides a helpful guide as you move through
this course. Figure 1-1 includes five different kinds of topics.
INDIVIDUAL OUTCOMES The right-most portion of the model contains the two primary out-
comes of interest to organizational behavior researchers (and employees and managers in orga-
nizations): job performance and organizational commitment. Most employees have two primary
goals for their working lives: to perform their jobs well and to remain a member of an organiza-
tion that they respect. Likewise, most managers have two primary goals for their employees:
to maximize their job performance and to ensure that they stay with the firm for a significant
length of time. As described in Chapter 2, there are several specific behaviors that, when taken
together, constitute good job performance. Similarly, as described in Chapter 3, there are a
number of beliefs, attitudes, and emotions that cause an employee to remain committed to an
employer.
This book starts by covering job performance and organizational commitment so that you can
better understand the two primary organizational behavior goals. Our hope is that by using perfor-
mance and commitment as starting points, we can highlight the practical importance of OB top-
ics. After all, what could be more important than having employees who perform well and want
to stay with the company? This structure also enables us to conclude the other chapters in the
book with sections that describe the relationships between each chapter’s topic and performance
and commitment. For example, the chapter on motivation concludes by describing the relation-
ships between motivation and performance and motivation and commitment. In this way, you’ll
learn which of the topics in the model are most useful for understanding your own attitudes and
behaviors.
1.2
What are the two primary
outcomes in studies of OB?
Final PDF to printer
8 C H A P T E R 1 What Is Organizational Behavior?
coL27660_ch01_002-027.indd 8 10/11/17 08:38 AM
INDIVIDUAL MECHANISMS Our integrative model also illustrates a number of individual
mechanisms that directly affect job performance and organizational commitment. These include
job satisfaction, which captures what employees feel when thinking about their jobs and doing their
day-to-day work (Chapter 4). Another individual mechanism is stress, which reflects employees’
psychological responses to job demands that tax or exceed their capacities (Chapter 5). The model
also includes motivation, which captures the energetic forces that drive employees’ work effort
(Chapter 6). Trust, justice, and ethics reflect the degree to which employees feel that their company
does business with fairness, honesty, and integrity (Chapter 7). The final individual mechanism
1.3
What factors affect the two
primary OB outcomes?
FIGURE 1-1 Integrative Model of Organizational Behavior
Leadership:
Styles &
Behaviors
Leadership:
Power &
Negotiation
Teams:
Processes &
Communication
Teams:
Characteristics &
Diversity
Organizational
Structure
Organizational
Culture
Stress
Motivation
Trust, Justice,
& Ethics
Organizational
Commitment
Job
Performance
Job
Satisfaction
Learning &
Decision Making
Ability
Personality &
Cultural Values
INDIVIDUAL
CHARACTERISTICS
INDIVIDUAL
CHARACTERISTICS
GROUP
MECHANISMS
GROUP
MECHANISMS
ORGANIZATIONAL
MECHANISMS
ORGANIZATIONAL
MECHANISMS
INDIVIDUAL
OUTCOMES
INDIVIDUAL
OUTCOMES
INDIVIDUAL
MECHANISMS
Final PDF to printer
9C H A P T E R 1 What Is Organizational Behavior?
coL27660_ch01_002-027.indd 9 10/11/17 08:38 AM
shown in the model is learning and decision making, which deals with how employees gain job
knowledge and how they use that knowledge to make accurate judgments on the job (Chapter 8).
INDIVIDUAL CHARACTERISTICS Of course, if satisfaction, stress, motivation, and so forth
are key drivers of job performance and organizational commitment, it becomes important to
understand what factors improve those individual mechanisms. Two such factors reflect the char-
acteristics of individual employees. Personality and cultural values reflect the various traits and
tendencies that describe how people act, with commonly studied traits including extraversion,
conscientiousness, and collectivism. As described in Chapter 9, personality and cultural values
affect the way people behave at work, the kinds of tasks they’re interested in, and how they react
to events that happen on the job. The model also examines ability, which describes the cognitive
abilities (verbal, quantitative, etc.), emotional skills (other awareness, emotion regulation, etc.),
and physical abilities (strength, endurance, etc.) that employees bring to a job. As described in
Chapter 10, ability influences the kinds of tasks an employee is good at (and not so good at).
GROUP MECHANISMS Our integrative model also acknowledges that employees don’t work
alone. Instead, they typically work in one or more work teams led by some formal (or sometimes
informal) leader. Like the individual characteristics, these group mechanisms shape satisfac-
tion, stress, motivation, trust, and learning. Chapter 11 covers team characteristics and diversity—
describing how teams are formed, staffed, and composed, and how team members come to rely on
one another as they do their work. Chapter 12 then covers team processes and communication—how
teams behave, including their coordination, conflict, and cohesion. The next two chapters focus
on the leaders of those teams. We first describe how individuals become leaders in the first place,
covering leader power and negotiation to summarize how individuals attain authority over others
(Chapter 13). We then describe how leaders behave in their leadership roles, as leader styles and
behaviors capture the specific actions that leaders take to influence others at work (Chapter 14).
ORGANIZATIONAL MECHANISMS Finally, our integrative model acknowledges that the
teams described in the prior section are grouped into larger organizations that themselves affect
satisfaction, stress, motivation, and so forth. For example, every company has an organizational
structure that dictates how the units within the firm link to (and communicate with) other units
(Chapter 15). Sometimes structures are centralized around a decision-making authority, whereas
other times, structures are decentralized, affording each unit some autonomy. Every company
also has an organizational culture that captures “the way things are” in the organization—shared
knowledge about the values and beliefs that shape employee attitudes and behaviors (Chapter 16).
SUMMARY Each of the chapters in this textbook will open with a depiction of this integrative
model, with the subject of each chapter highlighted. We hope that this opening will serve as a
roadmap for the course—showing you where you are, where you’ve been, and where you’re going.
We also hope that the model will give you a feel for the “big picture” of OB—showing you how all
the OB topics are connected.
D O E S O R G A N I Z AT I O N A L B E H AV I O R M AT T E R ?
Having described exactly what OB is, it’s time to discuss another fundamental question: Does it
really matter? Is there any value in taking a class on this subject, other than fulfilling some require-
ment of your program? (You might guess that we’re biased in our answers to these questions,
given that we wrote a book on the subject!) Few would disagree that organizations need to know
principles of accounting and finance to be successful; it would be impossible to conduct business
without such knowledge. Similarly, few would disagree that organizations need to know principles
of marketing, as consumers need to know about the firm’s products and what makes those prod-
ucts unique or noteworthy.
However, people sometimes wonder whether a firm’s ability to manage OB has any bearing
on its bottom-line profitability. After all, if a firm has a good-enough product, won’t people buy it
Final PDF to printer
10 C H A P T E R 1 What Is Organizational Behavior?
coL27660_ch01_002-027.indd 10 10/11/17 08:38 AM
regardless of how happy, motivated, or committed its workforce is? Perhaps for a time, but effec-
tive OB can help keep a product good over the long term. This same argument can be made in
reverse: If a firm has a bad-enough product, isn’t it true that people won’t buy it, regardless of how
happy, motivated, or committed its workforce is? Again, perhaps for a time, but the effective man-
agement of OB can help make a product get better, incrementally, over the long term.
Consider this pop quiz about the automotive industry: Which two automakers were rated tops
in car technology by J.D. Power in 2016? BMW was one—can you guess the other? The answer is
Hyundai (yes, Hyundai).1 The study focused on entertainment, connectivity, navigation, collision
avoidance, driving assistance, and convenience. The South Korean automaker has come a long
way since comedian Jay Leno likened a Hyundai to a bobsled (“It has no room, you have to push
it to get going, and it only goes downhill!”).2 Today its Sonatas and Elantras are built in an very
modern factory in Montgomery, Alabama. The factory employs 3000 workers and pays $17 per
hour as an entry-level wage.3 Much of Hyundai’s turnaround can be credited to the company’s
increased emphasis on quality. Work teams devoted to quality have been expanded eightfold, and
almost all employees are enrolled in special training programs devoted to quality issues.4 Hyundai
represents a case in which OB principles are being applied across cultures. Our OB Internationally
feature spotlights such international and cross-cultural applications of OB topics in each chapter.
B U I L D I N G A C O N C E P T UA L A R G U M E N T
Of course, we shouldn’t just accept it on faith that OB matters, nor should we merely look for specific
companies that appear to support the premise. What we need instead is a conceptual argument that
captures why OB might affect the bottom-line profitability of an organization. One such argument
is based on the resource-based view of organizations. This perspective describes what exactly makes
resources valuable—that is, what makes them capable of creating long-term profits for the firm.5
Changes in technology, communications, and economic forces have made business more global
and international than ever. To use Thomas Friedman’s line, “The world is flat.” The playing field
has been leveled between the United States and the rest of the world. This feature spotlights the
impact of globalization on the organizational behavior concepts described in this book and covers
a variety of topics.
Cross-Cultural Differences. Research in cross-cultural organizational behavior has illustrated
that national cultures affect many of the relationships in our integrative model. Put differently,
there is little that we know about OB that is “universal” or “culture free.”
International Corporations. An increasing number of organizations are international in scope,
with both foreign and domestic operations. Applying organizational behavior concepts in these
firms represents a special challenge—should policies and practices be consistent across locations
or tailored to meet the needs of the culture?
Expatriation. Working as an expatriate—an employee who lives outside his or her native
country—can be particularly challenging. What factors influence expatriates’ job performance and
organizational commitment levels?
Managing Diversity. More and more work groups are composed of members of different
cultural backgrounds. What are the special challenges involved in leading and working in such
groups?
OB INTERNATIONALLY
Sources: T.L. Friedman, “The World Is Flat,” Farrar, Straus and Giroux, New York, 2002; and H. Aguinis and C.A. Henl,
“The Search for Universals in Cross-Cultural Organizational Behavior.” In Organizational Behavior: The State of the Science,
ed. J. Greenberg, Mahwah, NJ: Erlbaum, 2003, pp. 373–411.
Final PDF to printer
11C H A P T E R 1 What Is Organizational Behavior?
coL27660_ch01_002-027.indd 11 10/11/17 08:38 AM
A firm’s resources include finan-
cial (revenue, equity, etc.) and
physical (buildings, machines,
technology) resources, but they
also include resources related to
organizational behavior, such as
the knowledge, ability, and wis-
dom of the workforce, as well as
the image, culture, and goodwill
of the organization.
The resource-based view
suggests that the value of
resources depends on several
factors, shown in Figure 1-2.
For example, a resource is
more valuable when it is rare.
Diamonds, oil, Babe Ruth baseball cards, and Action Comics #1 (the debut of Superman) are
all expensive precisely because they are rare. Good people are also rare—witness the adage “good
people are hard to find.” Ask yourself what percentage of the people you’ve worked with have
been talented, motivated, satisfied, and good team players. In many organizations, cities, or job
markets, such employees are the exception rather than the rule. If good people really are rare, then
the effective management of OB should prove to be a valuable resource.
The resource-based view also suggests that a resource is more valuable when it is inimitable,
meaning that it cannot be imitated. Many of the firm’s resources can be imitated, if competitors
have enough money. For example, a new form of technology can help a firm gain an advantage for
a short time, but competing firms can switch to the same technology. Manufacturing practices can
be copied, equipment and tools can be approximated, and marketing strategies can be mimicked.
Good people, in contrast, are much more difficult to imitate. As shown in Figure 1-2, there are
three reasons people are inimitable.
Hyundai’s emphasis on
work teams and training
has increased the quality
of its cars, like these mod-
els built in its Montgomery,
Alabama, plant.
©Dave Martin/AP Images
FIGURE 1-2 What Makes a Resource Valuable?
Inimitable
Rare
History
Numerous
Small
Decisions
Socially Complex
Resources
Resource
Value
Final PDF to printer
12 C H A P T E R 1 What Is Organizational Behavior?
coL27660_ch01_002-027.indd 12 10/11/17 08:38 AM
HISTORY People create a
history—a collective pool of
experience, wisdom, and
knowledge that benefits the
organization. History cannot be
bought. Consider an example
from the consumer electronics
retailing industry where Micro-
soft, taking a cue from Apple,
launched its first retail store in
Scottsdale, Arizona, in 2009.6
The company hoped that the
stores would give it a chance
to showcase its computer soft-
ware, along with its hardware
and gaming products. Micro-
soft continues to face an uphill climb in the retail space, however, because Apple had an eight-year
head start after opening its first store in 2001, in McLean, Virginia.7 Microsoft’s position on the
“retail learning curve” was therefore quite different, meaning that it had to grapple with many of
the same issues that Apple had resolved years earlier.
NUMEROUS SMALL DECISIONS The concept of numerous small decisions captures the idea
that people make many small decisions day in and day out, week in and week out. “So what?”
you might say, “Why worry about small decisions?” To answer that question, ask yourself what
the biggest decisions are when launching a new line of retail stores. The location of them maybe,
or perhaps their look and feel? It turns out that Microsoft placed their stores near Apple’s, and
mimicked much of their open, “Zen” sensibility. Said one patron, “It appears that the Microsoft
Store in Mission Viejo is dressed up as the Apple Store for Halloween.”8 Big decisions can be cop-
ied; they are visible to competitors and observable by industry experts. In contrast, the “behind
the scenes” decisions at the Apple Store are more invisible to Microsoft, especially the decisions
that involve the hiring and management of employees. Apple seems to understand the inimitable
advantage that such decisions can create. One article in Workforce Management included features
on the top human resources executives for 20 of the most admired companies in America.9 Inter-
estingly, the entry for Apple’s executive was cryptic, noting only that the company “keeps its
human resources executive shrouded in secrecy and refuses to respond to any questions about
HR’s contribution to the company’s most admired status.”
SOCIALLY COMPLEX RESOURCES People also create socially complex resources, like culture,
teamwork, trust, and reputation. These resources are termed “socially complex” because it’s not
always clear how they came to develop, though it is clear which organizations do (and do not) pos-
sess them. One advantage that Apple has over Microsoft in the retail wars is the unusual amount
of interest and enthusiasm created by products like the iPhone, iPad, MacBook, and Apple Watch.
Those products have an “it factor” that brings customers into the store, and Apple itself sits atop
Fortune’s list of 50 most admired companies in the world.10 Competitors like Microsoft can’t just
acquire “coolness” or “admiration”—they are complex resources that evolve in ways that are both
murky and mysterious.
R E S E A R C H E V I D E N C E
Thus, we can build a conceptual argument for why OB might affect an organization’s profitability:
Good people are both rare and inimitable and, therefore, create a resource that is valuable for
creating competitive advantage. Conceptual arguments are helpful, of course, but it would be even
better if there were hard data to back them up. Fortunately, it turns out that there is a great deal of
research evidence supporting the importance of OB for company performance. Several research
studies have been conducted on the topic, each employing a somewhat different approach.
One study began by surveying executives from 968 publicly held firms with 100 or more employ-
ees.11 The survey assessed so-called high performance work practices—OB policies that are widely
1.4
Why might firms that are
good at OB tend to be
more profitable?
Microsoft opened its first
retail stores in 2009,
including this one in Mis-
sion Viejo, California. The
look and feel of Microsoft’s
stores are very similar to
Apple’s retail outlets.
©Mark Boster/Getty Images
Final PDF to printer
13C H A P T E R 1 What Is Organizational Behavior?
coL27660_ch01_002-027.indd 13 10/11/17 08:38 AM
agreed to be beneficial to firm performance. The survey included 13 questions asking about a
combination of hiring, information sharing, training, performance management, and incentive
practices, and each question asked what proportion of the company’s workforce was involved in
the practice. Table 1-2 provides some of the questions used to assess the high- performance work
practices (and also shows which chapter of the textbook describes each particular practice in
more detail). The study also gathered the following information for each firm: average annual
rate of turnover, productivity level (defined as sales per employee), market value of the firm,
and corporate profitability. The results revealed that a one-unit increase in the proportion of the
workforce involved in the practices was associated with an approximately 7 percent decrease in
turnover, $27,000 more in sales per employee, $18,000 more in market value, and $3,800 more in
profits. Put simply, better OB practices were associated with better firm performance.
Although there is no doubting the importance of turnover, productivity, market value, and profit-
ability, another study examined an outcome that’s even more fundamental: firm survival.12 The study
focused on 136 nonfinancial companies that made initial public offerings (IPOs) in 1988. Firms that
undergo an IPO typically have shorter histories and need an infusion of cash to grow or introduce
some new technology. Rather than conducting a survey, the authors of this study examined the pro-
spectus filed by each firm (the Securities and Exchange Commission requires that prospectuses con-
tain honest information, and firms can be liable for any inaccuracies that might mislead investors). The
authors coded each prospectus for information that might suggest OB issues were valued. Examples
of valuing OB issues included describing employees as a source of competitive advantage in strategy
and mission statements, emphasizing training and continuing education, having a human resources
management executive, and emphasizing full-time rather than temporary or contract employees. By
1993, 81 of the 136 firms included in the study had survived (60 percent). The key question is whether
the value placed on OB predicted which did (and did not) survive. The results revealed that firms that
valued OB had a 19 percent higher survival rate than firms that did not value OB.
Source: Adapted from M.A. Huselid, “The Impact of Human Resource Management Practices on Turnover, Productivity,
and Corporate Financial Performance.” Academy of Management Journal, Vol. 38, pp. 635–72. Academy of Management.
TABLE 1-2 Survey Questions Designed to Assess High-
Performance Work Practices
SURVEY QUESTION ABOUT OB PRACTICE COVERED IN CHAPTER
What is the proportion of the workforce whose jobs have
been subjected to a formal job analysis?
2
What is the proportion of the workforce who are adminis-
tered attitude surveys on a regular basis?
4
What is the proportion of the workforce who have access to
company incentive plans, profit-sharing plans, and/or gain-
sharing plans?
6
What is the average number of hours of training received by
a typical employee over the last 12 months?
8, 10
What is the proportion of the workforce who have access to
a formal grievance procedure and/or complaint resolution
system?
7
What proportion of the workforce are administered an
employment test prior to hiring?
9, 10
What is the proportion of the workforce whose performance
appraisals are used to determine compensation?
6
Final PDF to printer
14 C H A P T E R 1 What Is Organizational Behavior?
coL27660_ch01_002-027.indd 14 10/11/17 08:38 AM
A third study focused on Fortune’s “100 Best Companies to Work For” list, which has appeared
annually since 1998.13 Table 1-3 provides some highlights from the 2017 version of the list. If the
100 firms on the list really do have good OB practices, and if good OB practices really do influ-
ence firm profitability, then it follows that the 100 firms should be more profitable. To explore
this premise, the study went back to an earlier version of the list and found a “matching firm” for
those companies that were included.14 The matching firm consisted of the most similar company
with respect to industry and size in that particular year, with the added requirement that the
company had not appeared on the “100 Best” list. This process essentially created two groups of
companies that differ only in terms of their inclusion in the “100 Best.” The study then compared
the profitability of those two groups of companies. The results revealed that the “100 Best” firms
were more profitable than their peers. Indeed, the cumulative investment return for a portfolio
based on the “100 Best” companies would have doubled the return for the broader market.
S O W H AT ’ S S O H A R D?
Clearly this research evidence seems to support the conceptual argument that good people con-
stitute a valuable resource for companies. Good OB does seem to matter in terms of company
profitability. You may wonder then, “What’s so hard?” Why doesn’t every company prioritize
the effective management of OB, devoting as much attention to it as they do accounting, finance,
marketing, technology, physical assets, and so on? Some companies do a bad job when it comes to
managing their people. Why is that?
One reason is that there is no “magic bullet” OB practice—one thing that, in and of itself, can
increase profitability. Instead, the effective management of OB requires a belief that several dif-
ferent practices are important, along with a long-term commitment to improving those practices.
This premise can be summarized with what might be called the Rule of One-Eighth:
One must bear in mind that one-half of organizations won’t believe the connection between
how they manage their people and the profits they earn. One-half of those who do see the
connection will do what many organizations have done—try to make a single change to solve
their problems, not realizing that the effective management of people requires a more compre-
hensive and systematic approach. Of the firms that make comprehensive changes, probably
TABLE 1-3 The “100 Best Companies to Work For” in 2017
1. Google 23. PwC 63. Delta
2. Wegmans 26. Hilton 64. Deloitte
3. Boston Consulting 28. REI 68. QuikTrip
4. Baird 29. EY 69. American Express
5. Edward Jones 32. Hyatt 72. IKEA
6. Genentech 33. Marriott 79. Four Seasons
10. Quicken Loans 48. Cheesecake Factory 84. Mayo Clinic
12. KPMG 49. Container Store 88. Accenture
13. Intuit 50. Mars 91. Aflac
15. SAS 54. Nationwide 93. AT&T
17. Capital One 58. Whole Foods 94. Nordstrom
21. Publix 62. Goldman Sachs 99. FedEx
Source: M.C. Bush and S. Lewis-Kulin., “The 100 Best Companies to Work For.” Fortune, March 15, 2017.
Final PDF to printer
15C H A P T E R 1 What Is Organizational Behavior?
coL27660_ch01_002-027.indd 15 10/11/17 08:38 AM
only about one-half will persist with their practices long enough to actually derive economic
benefits. Because one-half times one-half times one-half equals one-eighth, at best 12 percent
of organizations will actually do what is required to build profits by putting people first.15
The integrative model of OB used to structure this book was designed with this Rule of One-
Eighth in mind. Figure 1-1 suggests that high job performance depends not just on employee
motivation but also on fostering high levels of satisfaction, effectively managing stress, creating
a trusting climate, and committing to employee learning. Failing to do any one of those things
could hinder the effectiveness of the other concepts in the model. Of course, that systemic nature
reveals another reality of organizational behavior: It’s often difficult to “fix” companies that strug-
gle with OB issues. Such companies often struggle in a number of different areas and on a number
of different levels. For more discussion about why firms struggle to manage their people, see our
OB at the Bookstore feature, which appears in each chapter to showcase a well-known business
book that discusses OB concepts.
OB AT THE BOOKSTORE
This feature spotlights bestselling business books that complement the content of each chapter.
Drawing a bridge from our chapters to these books lets you see how the titles at the bookstore
complement the concepts in our integrative model of OB.
HOW TO HAVE A GOOD DAY
by Caroline Webb (New York: Brown Business, 2016).
We’re living in a golden age of behavioral science, where every pass-
ing week seems to deliver fresh insights into the way we think, feel,
and act. Neuroscientists, psychologists, and economists are busy
unraveling the important mysteries of our time, questions like: “How
can I conquer my inbox?” “Why do perfectly reasonable people get
their wires crossed?” “What would it take for me to stop procrastinat-
ing right now (or later today, or tomorrow)?” Scientific research has
ever more to say in answer to these sorts of pressing questions.
With those words, Webb highlights the potential of scientific
research for several different corners of our integrative model of
OB. An economist by trade, Webb also spent time doing in-depth
reading of research in psychology and neuroscience. The book then
applies a “neuro-psycho-economic” perspective to a number of dif-
ferent questions—questions relevant to any employee or manager.
For example, Webb describes research on priorities and produc-
tivity that echoes some of what we’ll cover in our Motivation and Job Performance chapters.
Studies on relationships and influence complement the content in our Teams and Leadership
chapters. Her coverage of thinking research reflects aspects of our Learning and Decision Making
chapter. Finally, her focus on resilience and energy supplements our discussions of Job Satisfac-
tion and Stress. In all of those sections, Webb pauses to explain scientific principles while high-
lighting specific studies and experiments.
What happens if we successfully bring to bear all of this scientific knowledge in our working
lives? Well, according to Webb, such efforts will result in more good days at work—and fewer bad
days. “We have more room to maneuver than we realize,” she argues. “The secret lies in learning
some of the science explaining how the brain works, and why people behave the way they do . . .
Grasp these essentials, and it becomes far clearer how to bring the best out of ourselves and oth-
ers. And that puts us in a much stronger position to create the kind of day we really want to have.”
©Roberts Publishing Services
Final PDF to printer
16 C H A P T E R 1 What Is Organizational Behavior?
coL27660_ch01_002-027.indd 16 10/11/17 08:38 AM
H O W D O W E “ K N O W ” W H AT W E K N O W A B O U T
O R G A N I Z AT I O N A L B E H AV I O R ?
Now that we’ve described what OB is and why it’s an important topic of study, we now turn to
how we “know” what we know about the topic. In other words, where does the knowledge in this
textbook come from? To answer this question, we must first explore how people “know” about
anything. Philosophers have argued that there are several different ways of knowing things:16
• Method of experience: People hold firmly to some belief because it is consistent with their own
experience and observations.
• Method of intuition: People hold firmly to some belief because it “just stands to reason”—it
seems obvious or self-evident.
• Method of authority: People hold firmly to some belief because some respected official, agency,
or source has said it is so.
• Method of science: People accept some belief because scientific studies have tended to replicate
that result using a series of samples, settings, and methods.
Consider the following prediction: Providing social recognition, in the form of public displays
of praise and appreciation for good behaviors, will increase the performance and commitment of
work units. Perhaps you feel that you “know” this claim to be true because you yourself have always
responded well to praise and recognition. Or perhaps you feel that you “know” it to be true because
it seems like common sense—who wouldn’t work harder after a few public pats on the back? Maybe
you feel that you “know” it to be true because a respected boss from your past always extolled
the virtue of public praise and recognition.
However, the methods of experience, intuition, and authority also might have led you to the
opposite belief—that providing social recognition has no impact on the performance and commit-
ment of work units. It may be that public praise has always made you uncomfortable or embar-
rassed, to the point that you’ve tried to hide especially effective behaviors to avoid being singled
out by your boss. Or it may seem logical that social recognition will be viewed as “cheap talk,”
with employees longing for financial incentives rather than verbal compliments. Or perhaps the
best boss you ever worked for never offered a single piece of social recognition in her life, yet her
employees always worked their hardest on her behalf. From a scientist’s point of view, it doesn’t
really matter what a person’s experience, intuition, or authority suggests; the prediction must be
tested with data. In other words, scientists don’t simply assume that their beliefs are accurate; they
acknowledge that their beliefs must be tested scientifically.
Scientific studies are based on the scientific method, originated by Sir Francis Bacon in the
1600s and adapted in Figure 1-3.17 The scientific method begins with theory, defined as a collec-
tion of assertions—both verbal and symbolic—that specify how and why variables are related, as
well as the conditions in which they should (and should not) be related.18 More simply, a theory
tells a story and supplies the familiar who, what, where, when, and why elements found in any
newspaper or magazine article.19 Theories are often summarized with theory diagrams, the “boxes
and arrows” that graphically depict relationships between variables. Our integrative model of OB
in Figure 1-1 represents one such diagram, and there will be many more to come in the remaining
chapters of this textbook.
A scientist could build a theory explaining why social recognition might influence the per-
formance and commitment of work units. From what sources would that theory be built? Well,
because social scientists “are what they study,” one source of theory building is introspection.
However, theories may also be built from interviews with employees or from observations where
scientists take notes, keep diaries, and pore over company documents to find all the elements of a
theory story.20 Alternatively, theories may be built from research reviews, which examine findings
of previous studies to look for general patterns or themes.21
Although many theories are interesting, logical, or thought provoking, many also wind up being
completely wrong. After all, scientific theories once predicted that the earth was flat and the sun
revolved around it. Closer to home, OB theories once argued that money was not an effective motivator
1.5
What is the role of theory in
the scientific method?
Final PDF to printer
17C H A P T E R 1 What Is Organizational Behavior?
coL27660_ch01_002-027.indd 17 10/11/17 08:38 AM
and that the best way to structure jobs was to make them as simple and mundane as possible.22 Theo-
ries must therefore be tested to verify that their predictions are accurate. As shown in Figure 1-3, the
scientific method requires that theories be used to inspire hypotheses. Hypotheses are written predic-
tions that specify relationships between variables. For example, a theory of social recognition could be
used to inspire this hypothesis: “Social recognition behaviors on the part of managers will be positively
related to the job performance and organizational commitment of their units.” This hypothesis states,
in black and white, the expected relationship between social recognition and unit performance.
Assume a family member owned a chain of 21 fast-food restaurants and allowed you to test this
hypothesis using the restaurants. Specifically, you decided to train the managers in a subset of the
restaurants about how to use social recognition as a tool to reinforce behaviors. Meanwhile, you
left another subset of restaurants unchanged to represent a control group. You then tracked the
total number of social recognition behaviors exhibited by managers over the next nine months
by observing the managers at specific time intervals. You measured job performance by tracking
drive-through times for the next nine months and used those times to reflect the minutes it takes
for a customer to approach the restaurant, order food, pay, and leave. You also measured the com-
mitment of the work unit by tracking employee retention rates over the next nine months.
So how can you tell whether your hypothesis was supported? You could analyze the data by
examining the correlation between social recognition behaviors and drive-through times, as well as
the correlation between social recognition behaviors and employee turnover. A correlation, abbre-
viated r, describes the statistical relationship between two variables. Correlations can be positive
or negative and range from 0 (no statistical relationship) to 1 (a perfect statistical relationship).
Picture a spreadsheet with two columns of numbers. One column contains the total numbers of
social recognition behaviors for all 21 restaurants; the other contains the average drive-through
times for those same 21 restaurants. The best way to get a feel for the correlation is to look at a
scatterplot—a graph made from those two columns of numbers. Figure 1-4 presents three scatter-
plots, each depicting different-sized correlations. The strength of the correlation can be inferred
from the “compactness” of its scatterplot. Panel (a) shows a perfect 1.0 correlation; knowing the
score for social recognition allows you to predict the score for drive-through times perfectly. Panel
(b) shows a correlation of .50, so the trend in the data is less obvious than in Panel (a) but still
easy to see with the naked eye. Finally, Panel (c) shows a correlation of .00—no statistical rela-
tionship. Understanding the correlation is important because OB questions are not “yes or no”
in nature. That is, the question is not “Does social recognition lead to higher job performance?”
but rather “How often does social recognition lead to higher job performance?” The correlation
provides a number that expresses an answer to the “how often” question.
1.6
How are correlations
interpreted?
FIGURE 1-3 The Scientific Method
VERIFICATION HYPOTHESES
THEORY
DATA
Final PDF to printer
18 C H A P T E R 1 What Is Organizational Behavior?
coL27660_ch01_002-027.indd 18 10/11/17 08:38 AM
So what is the correlation between social recognition and job performance (and between social
recognition and organizational commitment)? It turns out that a study very similar to the one
described was actually conducted, using a sample of 21 Burger King restaurants with 525 total
employees.23 The correlation between social recognition and job performance was .28. The restau-
rants that received training in social recognition averaged 44 seconds of drive-through time nine
months later versus 62 seconds for the control group locations. The correlation between social
recognition and retention rates was .20. The restaurants that received training in social recogni-
tion had a 16 percent better retention rate than the control group locations nine months later.
The study also instituted a financial “pay-for-performance” system in a subset of the locations and
found that the social recognition effects were just as strong as the financial effects.
Of course, you might wonder whether correlations of .28 or .20 are impressive or unimpres-
sive. To understand those numbers, let’s consider some context for them. Table 1-4 provides some
notable correlations from other areas of science. If the correlation between height and weight is
only .44, then a correlation of .28 between social recognition and job performance doesn’t sound
too bad! In fact, a correlation of .50 is considered “strong” in organizational behavior research,
given the sheer number of things that can affect how employees feel and act.24 A .30 correlation
is considered “moderate,” and many studies discussed in this book will have results in this range.
Finally, a .10 correlation is considered “weak” in organizational behavior research. It should be
noted, however, that even “weak” correlations can be important if they predict costly behaviors
such as theft or ethical violations. The .08 correlation between smoking and lung cancer within
25 years is a good example of how important small correlations can be.
Does this one study settle the debate about the value of social recognition for job perfor-
mance and organizational commitment? Not really, for a variety of reasons. First, it included only
FIGURE 1-4 Three Different Correlation Sizes
Social Recognition Behaviors
Social Recognition Behaviors
Social Recognition Behaviors
(a) r = 1.00
(b) r = .50
(c) r = .00
Jo
b
P
e
rf
o
rm
a
n
ce
Jo
b
P
e
rf
o
rm
a
n
ce
Jo
b
P
e
rf
o
rm
a
n
ce
Final PDF to printer
19C H A P T E R 1 What Is Organizational Behavior?
coL27660_ch01_002-027.indd 19 10/11/17 08:38 AM
21 restaurants with 525 employees—maybe the results would have turned out differently if the
study had included more locations. Second, it focused only on restaurant employees—maybe
there’s something unique about such employees that makes them particularly responsive to social
recognition. Third, it may be that the trained locations differed from the control locations on
something other than social recognition, and it was that “something” that was responsible for
the performance differences. You may have heard the phrase, “correlation does not imply causa-
tion.” It turns out that making causal inferences—establishing that one variable really does cause
another—requires establishing three things.25 First, that the two variables are correlated. Second,
that the presumed cause precedes the presumed effect in time. Third, that no alternative explana-
tion exists for the correlation. The third criterion is often fulfilled in experiments, where research-
ers have more control over the setting in which the study occurs.
The important point is that little can be learned from a single study. The best way to test a theory
is to conduct many studies, each of which is as different as possible from the ones that preceded
it.26 So if you really wanted to study the effects of social recognition, you would conduct several
TABLE 1-4 Some Notable Correlations
CORRELATION BETWEEN . . . r SAMPLE SIZE
Height and weight .44 16,948
Ibuprofen and pain reduction .14 8,488
Antihistamines and reduced sneezing .11 1,023
Smoking and lung cancer within 25 years .08 3,956
Coronary bypass surgery and 5-year survival .08 2,649
Source: Robert Hogan, “In Defense of Personality Measurement: New Wine for Old Whiners.” Human Performance, Vol. 18,
2005, pp. 331–41.
A study of Burger King
restaurants revealed
a correlation between
social recognition—praise
and appreciation by
managers—and employ-
ees’ performance and
commitment. Such studies
contribute to the growing
body of organizational
behavior knowledge.
©Wilfredo Lee/AP Images
Final PDF to printer
20 C H A P T E R 1 What Is Organizational Behavior?
coL27660_ch01_002-027.indd 20 10/11/17 08:38 AM
studies using different kinds of samples, different kinds of measures, and both experimental and
nonexperimental methods. After completing all of those studies, you could look back on the results
and create some sort of average correlation across all of the studies. This process is what a technique
called meta-analysis does. It takes all of the correlations found in studies of a particular relationship
and calculates a weighted average (such that correlations based on studies with large samples are
weighted more than correlations based on studies with small samples). It turns out that a meta-
analysis has been conducted on the effects of social recognition and job performance. That analysis
revealed an average correlation of .21 across studies conducted in 96 different organizations in the
service industry.27 That meta-analysis offers more compelling support for the potential benefits of
social recognition than the methods of experience, intuition, or authority could have provided.
Indeed, meta-analyses can form the foundation for evidence-based management—a perspective that
argues that scientific findings should form the foundation for management education, much as they
do for medical education.28 Proponents of evidence-based management argue that human resources
should be transformed into a sort of R&D department for managing people.29 Notes one advocate, “In
R&D, you go into the laboratory, you experiment and you keep up with the research that others do. . . .
Can you imagine walking into the R&D lab at a pharmaceutical company, asking the chief chemist
about an important new study and having him respond that they don’t keep up with the literature on
chemistry?” Verizon Business, the Basking Ridge, New Jersey–based unit of Verizon Communica-
tions, is one example of a company that is moving toward evidence-based management. The company
notes that the dollars spent on human resources issues demand more than an intuition-based justifica-
tion for new plans. More informed decisions come from running systematic experiments in smaller
units of an organization, making greater use of internal data, hiring PhDs with relevant expertise, and
pursuing collaborations with academics. Such practices form the foundation for the use of analytics
as a tool for management, with analytics defined as the use of data (rather than just opinion) to guide
decision making.30 For a look at how analytics is used in the world of sports, see our OB on Screen
feature, which appears in each chapter and uses well-known movies to demonstrate OB concepts.
S U M M A R Y: M O V I N G F O R WA R D I N T H I S B O O K
The chapters that follow will begin working through the integrative model of OB in Figure 1-1,
beginning with the individual outcomes and continuing with the individual, group, and organiza-
tional mechanisms that lead to those outcomes. Each chapter begins by spotlighting a company
that historically has done a good job of managing a given topic or is currently struggling with a
topic. Theories relevant to that topic will be highlighted and discussed. The concepts in those
theories will be demonstrated in the OB on Screen features to show how OB phenomena have
“come to life” in film. The OB at the Bookstore feature will then point you to bestsellers that dis-
cuss similar concepts. In addition, the OB Internationally feature will describe how those concepts
operate differently in different cultures and nations.
Each chapter ends with three sections. The first section provides a summarizing theory dia-
gram that explains why some employees exhibit higher levels of a given concept than others. For
example, the summarizing theory diagram for Chapter 4 will explain why some employees are
more satisfied with their jobs than others. As we noted in the opening of this chapter, knowledge
about why is critical to any employee who is trying to make sense of his or her working life or any
manager who is trying to make his or her unit more effective. How often have you spent time try-
ing to explain your own attitudes and behaviors to yourself? If you consider yourself to be an intro-
spective person, you’ve probably thought about such questions quite a bit. Our OB Assessments
feature will help you find out how reflective you really are. This feature also appears in each
chapter of the textbook and allows you to gain valuable knowledge about your own personality,
abilities, job attitudes, and leadership styles.
The next concluding section will describe the results of meta-analyses that summarize the rela-
tionships between that chapter’s topic and both job performance and organizational commitment.
Over time, you’ll gain a feel for which of the topics in Figure 1-1 have strong, moderate, or weak
relationships with these outcomes. This knowledge will help you recognize how everything in OB
fits together and what the most valuable tools are for improving performance and commitment
Final PDF to printer
21C H A P T E R 1 What Is Organizational Behavior?
coL27660_ch01_002-027.indd 21 10/11/17 08:38 AM
OB ON SCREEN
This feature is designed to illustrate OB concepts in action on the silver screen. Once you’ve
learned about OB topics, you’ll see them playing out all around you, especially in movies.
MONEYBALL
You don’t put a team together with a computer, Billy. . . . Baseball isn’t just numbers; it’s not sci-
ence. If it was, then anybody could do what we’re doing. But they can’t because they don’t know
what we know. They don’t have our experience and they don’t have our intuition.
With those words, Grady Fuson (Ken Medlock) tries to show Billy Beane (Brad Pitt) the error
of his ways in Moneyball (Dir. Bennett Miller, Columbia Pictures, 2011). Billy is the general man-
ager of the Oakland Athletics (A’s). After losing to the New York Yankees in the playoffs, Billy’s
been forced to trim a payroll that is already a third of what the Yankees pay. To the angst of his head
scout Grady, Billy turns to Pete Brand, aka “Google boy,” a recent hire with a degree in economics
from Yale. Pete is well versed in “sabermetrics”—the scientific search for objective baseball knowl-
edge begun by Bill James, with a nod to the Society for American Baseball Research (SABR).
©Columbia Pictures/Photofest
The film, based on the Michael Lewis bestseller,31 shows how science can complement experience
and intuition. For example, Pete’s advanced analytics showed that “on-base percentage”—a statistic
dependent not just on hits but also on walks—was a more valid indicator of a player’s value than the
home runs emphasized by traditional scouts. Ironically, the success of Moneyball caused a number of
baseball teams to hire “sabermetricians,” erasing some of the advantages that Billy’s approach had
given Oakland.32 Indeed, the use of advanced analytics has taken hold in other professional sports,
most notably the National Basketball Association.33 Hopefully evidence-based management will allow
organizational managers to do what sports managers are doing—test their theories of success with data.
in the workplace. As you will discover, some of the topics in OB have a greater impact on how
well employees perform their jobs, whereas others have a greater impact on how long employees
remain with their organizations. Finally, the third concluding section will describe how the con-
tent of that chapter can be applied, at a specific level, in an actual organization. For example, the
motivation chapter concludes with a section describing how compensation practices can be used
to maximize employee effort. If you’re currently working, we hope that these concluding sections
will help you see how the concepts you’re reading about can be used to improve your own organi-
zations. Even if you’re not working, these application sections will give you a glimpse into how you
will experience OB concepts once you begin your working life.
Final PDF to printer
22 C H A P T E R 1 What Is Organizational Behavior?
coL27660_ch01_002-027.indd 22 10/11/17 08:38 AM
OB ASSESSMENTS
SCORING AND INTERPRETATION
If your scores sum up to 26 or above, you do a lot of introspection and are highly self-aware. You
may find that many of the theories discussed in this textbook will help you better understand your
attitudes and feelings about working life.
Source: Adapted from A. Fenigstein, M.F. Scheier, and A.H. Buss, “Public and Private Self-Consciousness: Assessment and
Theory,” Journal of Consulting and Clinical Psychology, Vol. 43, August 1975, pp. 522–27. American Psychological Association.
This feature is designed to illustrate how OB concepts actually get measured in practice. In many
cases, these OB assessments will provide you with potentially valuable insights into your own
attitudes, skills, and personality. The OB assessments that you’ll see in each chapter consist of
multiple survey items. Two concepts are critical when evaluating how good the OB assessments
are: reliability and validity. Reliability is defined as the degree to which the survey items are free
from random error. If survey items are reliable, then similar items will yield similar answers. Valid-
ity is defined as the degree to which the survey items seem to assess what they are meant to assess.
If survey items are valid, then experts on the subject will agree that the items seem appropriate.
INTROSPECTION
How introspective are you? This assessment is designed to measure introspection—sometimes
termed “private self-consciousness”—which is the tendency to direct attention inward to better
understand your attitudes and behaviors. Answer each question using the response scale provided.
Then subtract your answers to the boldfaced questions from 4, with the difference being your new
answers for those questions. For example, if your original answer for question 5 was “3,” your
new answer is 1 (4 – 3). Then sum your answers for the 10 questions. (Instructors: Assessments
on scientific interests and methods of knowing can be found in the PowerPoints in the Connect
Library’s Instructor Resources and in the Connect assignments for this chapter.)
0
EXTREMELY
UNCHARACTERISTIC
OF ME
1
SOMEWHAT
UNCHARACTERISTIC
OF ME
2
NEUTRAL
3
SOMEWHAT
CHARACTERISTIC
OF ME
4
EXTREMELY
CHARACTERISTIC
OF ME
1. I’m always trying to figure myself out.
2. Generally, I’m not very aware of myself.
3. I reflect about myself a lot.
4. I’m often the subject of my own daydreams.
5. I never scrutinize myself.
6. I’m generally attentive to my inner feelings.
7. I’m constantly examining my motives.
8. I sometimes have the feeling that I’m off somewhere watching myself.
9. I’m alert to changes in my mood.
10. I’m aware of the way my mind works when I work through a problem.
Final PDF to printer
23C H A P T E R 1 What Is Organizational Behavior?
coL27660_ch01_002-027.indd 23 10/11/17 08:38 AM
1.1 Organizational behavior is a field of study devoted to understanding and explaining the
attitudes and behaviors of individuals and groups in organizations. More simply, it focuses
on why individuals and groups in organizations act the way they do.
1.2 The two primary outcomes in organizational behavior are job performance and organiza-
tional commitment.
1.3 A number of factors affect performance and commitment, including individual mechanisms
(job satisfaction; stress; motivation; trust, justice, and ethics; learning and decision making),
individual characteristics (personality and cultural values; ability), group mechanisms (team
characteristics and diversity; team processes and communication; leader power and negotia-
tion; leader styles and behaviors), and organizational mechanisms (organizational structure;
organizational culture).
1.4 The effective management of organizational behavior can help a company become more
profitable because good people are a valuable resource. Not only are good people rare, but
they are also hard to imitate. They create a history that cannot be bought or copied, they
make numerous small decisions that cannot be observed by competitors, and they create
socially complex resources such as culture, teamwork, trust, and reputation.
1.5 A theory is a collection of assertions, both verbal and symbolic, that specifies how and why
variables are related, as well as the conditions in which they should (and should not) be
related. Theories about organizational behavior are built from a combination of interviews,
observation, research reviews, and reflection. Theories form the beginning point for the
scientific method and inspire hypotheses that can be tested with data.
1.6 A correlation is a statistic that expresses the strength of a relationship between two variables
(ranging from 0 to ± 1). In OB research, a .50 correlation is considered “strong,” a .30 cor-
relation is considered “moderate,” and a .10 correlation is considered “weak.”
TA K E AWAY S
K E Y T E R M S
• Organizational behavior (OB) p. 6
• Human resource management p. 7
• Strategic management p. 7
• Resource-based view p. 10
• Inimitable p. 11
• History p. 12
• Numerous small decisions p. 12
• Socially complex resources p. 12
• Rule of One-Eighth p. 14
• Method of experience p. 16
• Method of intuition p. 16
• Method of authority p. 16
• Method of science p. 16
• Theory p. 16
• Hypotheses p. 17
• Correlation p. 17
• Causal inference p. 19
• Meta-analysis p. 20
• Evidence-based management p. 20
• Analytics p. 20
1.1 Assuming you possessed the right technical skills for the job, would a position at IKEA be
appealing to you? What would be the most important positives associated with the position,
in your view? What would be the most important negatives?
D I S C U S S I O N Q U E S T I O N S
Final PDF to printer
24 C H A P T E R 1 What Is Organizational Behavior?
coL27660_ch01_002-027.indd 24 10/11/17 08:38 AM
The values in the “Little IKEA Dictionary” do more than shape the experience of working at
IKEA. They also shape the actions the company takes as it interfaces with the world at large. For
example, IKEA is a leader in helping to support refugees—people forced to leave their countries
because of wars, disasters, or persecutions. The company designed and manufactured the Better
Shelter—a flat-packed shelter that’s solar-powered and can fit a family of five. More than 16,000
shelters have been distributed around the world since 2015. The shelter even won the the presti-
gious Beazley Design of the Year Award. IKEA also plans to sell a line of rugs made by Syrian
refugees. The initiative will provide jobs for 200 refugees and the rugs will be sold in several
Middle Eastern countries. Jesper Broden, an IKEA managing director, notes, “The situation in
Syria is a major tragedy of our time. . . . We decided to look into how IKEA can contribute.”
As another example, the company is doing what it can to promote environmental s ustainability—
a key challenge given the number of stores it operates. IKEA has installed solar panels at 90 percent
of its stores. Moreover, a recent report placed it among the top U.S. companies for producing solar
power (alongside Target, Walmart, Apple, Costco, and Kohl’s). IKEA also unveiled “The Farm,” a
hydroponic garden that allows it to grow the food served in its in-store cafes—famous for their Swed-
ish meatballs and cinnamon rolls. Finally, the company launched a “Save the Furniture” campaign
in Belgium, where customers can sell their old furniture to IKEA, with the store then selling the
furniture to its customers. The program, which will be piloted in the United States, is described as
“amnesty for pre-loved furniture” and is not limited to IKEA’s own products.
Of course, those sorts of expressions of IKEA’s values may not be as salient to employees as
management philosophies, promotion rates, working hours, and compensation levels. Still, such
actions may instill a sense of pride among the rank-and-file, encouraging them to see more mean-
ing and purpose in their work. Such actions may also make employees think twice before accept-
ing jobs at competitors who are less “society minded.” Of course, customer awareness of IKEA’s
policies and initiatives could breed product loyalty—or even turn customers into applicants for
job openings in the company.
1.1 To what extent does a company’s culture wind up reflecting the personality of its founder?
To what extent does it reflect the values of the country it was founded in? Which seems to
be a stronger force in the case of IKEA?
1.2 IKEA operates in a number of countries around the world. The governments and people
in those countries may have different attitudes about working hours, diversity efforts, pay
levels, and political and environmental activism. Should companies alter their policies and
activities in a way that is sensitive to such differences?
C A S E : I K E A
1.2 Think again about the worst coworker you’ve ever had—the one who did some of the things
listed in Table 1-1. Think about what that coworker’s boss did (or didn’t do) to try to
improve his or her behavior. What did the boss do well or poorly? What would you have
done differently, and which organizational behavior topics would have been most relevant?
1.3 Which of the individual mechanisms in Figure 1-1 (job satisfaction; stress; motivation; trust,
justice, and ethics; learning and decision making) seems to drive your performance and
commitment the most? Do you think you’re unique in that regard, or do you think most
people would answer that way?
1.4 Create a list of the most successful companies that you can think of. What do these compa-
nies have that others don’t? Are the things that those companies possess rare and inimitable
(see Figure 1-2)? What makes those things difficult to copy?
1.5 Think of something that you “know” to be true based on the method of experience, the
method of intuition, or the method of authority. Could you test your knowledge using the
method of science? How would you do it?
Final PDF to printer
25C H A P T E R 1 What Is Organizational Behavior?
coL27660_ch01_002-027.indd 25 10/11/17 08:38 AM
1.3 Assume you were an employee at an organization like IKEA, and Fortune surveyed you for
its 100 Best Companies to Work For list. To what extent would your attitudes be shaped not
just by internal work policies, but also by how the company engages with society?
Sources: S. Begley, “IKEA Will Sell Rugs and Textiles Made by Syrian Refugees,” Fortune, January 31, 2017; A. Byland,
“How Ingvar Kamprad Made His Billions,” The Motley Fool, April 19, 2014; K. Fehrenbacher, “These Are the U.S. Com-
panies with the Most Solar Power.” Fortune, October 19, 2016; IKEA 2016 by Numbers, August, 2016, http://franchisor
.ikea.com/wp-content/uploads/2016/12/IKEA-Highlights-2016-Facts-and-Figures ; M. Gladwell, David and Goliath:
Underdogs, Misfits, and the Art of Battling Giants; (New York: Little, Brown, and Company, 2013); G. Houston, “How
IKEA Plans to Help Restaurants Build Their Own Indoor Farms,” Fortune, June 21, 2016; B. Kowitt, “The Coolest Things
IKEA, Coca-Cola, and Walmart Are Doing to Cut Waste,” Fortune, May 16, 2016; B. Kowitt, “At IKEA: No Ranks, No
Rancor,” Fortune, March 15, 2016; R. Levering, “The 100 Best Companies to Work For,” Fortune, March 15, 2016; and
M. Rhodan, “IKEA Refugee Shelter Wins Design of the Year Award,” Fortune, January 30, 2017.
E X E R C I S E : I S O B C O M M O N S E N S E ?
The purpose of this exercise is to take some of the topics covered in this textbook and examine
whether improving them is “just common sense.” This exercise uses groups, so your instructor
will either assign you to a group or ask you to create your own. The exercise has the following
steps:
1.1 Consider the theory diagram shown below. It explains why two “independent variables” (the
quality of a movie’s script and the fame of its stars) affect a “dependent variable” (how much
the movie makes at the box office).
Buzz
Generated
Box
O�ce
Receipts
Quality of
Script
Fame of
Stars
Favorability
of Reviews
1.2 Now build your own theory diagram about organizational behavior. In your groups, choose
one of the following four topics to use as your dependent variable:
• Job satisfaction: The pleasurable emotions felt when performing job tasks.
• Strain: The headaches, fatigue, or burnout resulting from workplace stress.
• Motivation: The intensity and persistence of job-related effort.
• Trust in supervisor: The willingness to allow a supervisor to have significant influence
over key job issues.
Using a laptop, whiteboard, or chalkboard, build a theory diagram that summarizes the fac-
tors that affect your chosen dependent variable. To be as comprehensive as possible, try to
include at least four independent variables. Keep your books closed! You should build your
diagrams using only your own experience and intuition.
1.3 Each group should present its theory diagram to the class. Do the predicted relationships
make sense? Should anything be dropped? Should anything be added?
1.4 Now compare the theory diagram you created with the diagrams in the textbook (Figure 4-7
for Job Satisfaction, Figure 5-3 for Strain, Figure 6-7 for Motivation, and Figure 7-7 for Trust
in Supervisor). How does your diagram compare to the textbook’s diagrams? (Search the bold-
faced key terms for any jargon that you don’t understand.) Did you leave out some important
independent variables or suggest some variables that have not been supported by the academic
research summarized in the chapters? If so, it shows that OB is more than just common sense.
Final PDF to printer
26 C H A P T E R 1 What Is Organizational Behavior?
coL27660_ch01_002-027.indd 26 10/11/17 08:38 AM
1.1 Kiley, D. “J.D. Power:
BMW and Hyundai
Are Tops in Car Tech.”
Forbes, October 11,
2016.
1.2 Source: Ihlwan, M., and
C. Dawson. “Building
a ‘Camry Fighter’: Can
Hyundai Transform
Itself into One of the
World’s Top Auto Mak-
ers?” BusinessWeek, Sep-
tember 6, 2004, http://
www. businessweek
.com/magazine/
content/04_36/
b3898072.htm.
1.3 Levin, D. “New Hyun-
dai Sonatas Rolling Out
of Super-Busy Alabama
Plant.” Fortune, June
26, 2014.
1.4 Taylor, A. III. “Hyundai
Smokes the Competi-
tion.” Fortune, January
18, 2010, pp. 62–71;
and Ihlwan, M.; L.
Armstrong; and M.
Eldam. “Kissing
Clunkers Goodbye.”
BusinessWeek, May 17,
2004, http://www
.businessweek.com/
magazine/content/
04_20/b3883054.htm.
1.5 Barney, J.B. “Looking
Inside for Competitive
Advantage.” In Stra-
tegic Human Resource
Management, ed.
R.S. Schuler and S.E.
Jackson. Malden, MA:
Blackwell, 1999,
pp. 128–41.
1.6 McIntyre, D.A.
“Microsoft Launches
Retail Stores to Save
Windows.” Time,
February 13, 2009,
http://www.time.com/
time/business/article/
0,8599,1879368,00
.html.
1.7 Edwards, C. “Com-
mentary: Sorry, Steve:
Here’s Why Apple
Stores Won’t Work.”
BusinessWeek, May
21, 2001, http://www
. businessweek.com/
magazine/content/
01_21/b3733059.htm.
1.8 Source: Frommer, D.
“Microsoft’s New Retail
Stores Look Just Like
Apple Stores.” Business
Insider, November 1,
2009.
1.9 Hansen, F. “Admirable
Qualities.” Workforce
Management, June 23,
2008, pp. 25–32.
1.10 DeCarlo, S. “The
World’s Most Admired
Companies.” Fortune,
March 1, 2017.
1.11 Huselid, M.A. “The
Impact of Human
Resource Management
Practice on Turnover,
Productivity, and
Corporate Financial
Performance.” Academy
of Management Journal
38 (1995), pp. 635–72.
1.12 Welbourne, T.M.,
and A.O. Andrews.
“Predicting the Perfor-
mance of Initial Public
Offerings: Should
Human Resource
Management Be in the
Equation?” Academy of
Management Journal 39
(1996), pp. 891–919.
1.13 Bush, M.C., and S.
Lewis-Kulin. “100 Best
Companies to Work
For” Fortune, March 15,
2017.
1.14 Fulmer, I.S.; B. Gerhart;
and K.S. Scott. “Are
the 100 Best Better? An
Empirical Investigation
of the Relationship
Between Being a ‘Great
Place to Work’ and
Firm Performance.”
Personnel Psychology 56
(2003), pp. 965–93.
1.15 Source: Pfeffer, J., and
J.F. Veiga. “Putting
People First for Organi-
zational Success.” Acad-
emy of Management
Executive 13 (1999),
pp. 37–48.
1.16 Kerlinger, F.N., and
H.B. Lee. Foundations
of Behavioral Research.
Fort Worth, TX: Har-
court, 2000.
1.17 Bacon, F.; M. Silver-
thorne; and L. Jardine.
The New Organon.
Cambridge: Cambridge
University Press, 2000.
1.18 Campbell, J.P. “The
Role of Theory in
Industrial and Organi-
zational Psychology.” In
Handbook of Industrial
and Organizational Psy-
chology, Vol. 1, edited
by, M.D. Dunnette and
L.M. Hough. Palo Alto,
CA: Consulting Psy-
chologists Press, 1990,
pp. 39–74.
1.19 Whetten, D.A. “What
Constitutes a Theo-
retical Contribution?”
Academy of Manage-
ment Review 14 (1989),
pp. 490–95.
E N D N OT E S
Final PDF to printer
27C H A P T E R 1 What Is Organizational Behavior?
coL27660_ch01_002-027.indd 27 10/11/17 08:38 AM
1.20 Locke, K. “The
Grounded Theory
Approach to Quali-
tative Research.”
In Measuring and
Analyzing Behavior
in Organizations, ed.
F. Drasgow and N.
Schmitt. San Fran-
cisco, CA: Jossey-Bass,
2002, pp. 17–43.
1.21 Locke, E.A., and
G.P. Latham. “What
Should We Do About
Motivation Theory?
Six Recommendations
for the Twenty-First
Century.” Academy of
Management Review 29
(2004), pp. 388–403.
1.22 Herzberg, F.; B. Maus-
ner; and B.B. Snyder-
man. The Motivation to
Work. New York: John
Wiley, 1959; Taylor,
F. W. The Principles of
Scientific Management.
New York: Harper &
Row, 1911.
1.23 Peterson, S.J., and F.
Luthans. “The Impact
of Financial and
Nonfinancial Incen-
tives on Business-Unit
Outcomes over Time.”
Journal of Applied
Psychology 91 (2006),
pp. 156–65.
1.24 Cohen, J.; P. Cohen;
S.G. West; and L.S.
Aiken. Applied Multiple
Regression/Correlation
Analysis for the Behav-
ioral Sciences. Mahwah,
NJ: Erlbaum, 2003.
1.25 Shadish, W.R.; T.D.
Cook; and D.T. Camp-
bell. Experimental and
Quasi-Experimental
Designs for General-
ized Causal Inference.
Boston, MA: Houghton
Mifflin, 2002.
1.26 Ibid.
1.27 Stajkovic, A.D., and
F. Luthans. “A Meta-
Analysis of the Effects
of Organizational
Behavior Modification
on Task Performance,
1975–1995.” Academy
of Management Journal
40 (1997), pp. 1122–49.
1.28 Rousseau, D.M.; J.
Manning; and D.
Denyer. “Evidence
in Management and
Organizational Science:
Assembling the Field’s
Full Eight of Scientific
Knowledge Through
Syntheses.” Academy
of Management Annals
2 (2008), pp. 475–515;
and Briner, R.B.; D.
Denyer; and D.M. Rous-
seau. “Evidence-Based
Management: Concept
Cleanup Time?” Acad-
emy of Management
Perspectives 23 (2009),
pp. 19–32.
1.29 Hansen, F. “Merit-Pay
Payoff?” Workforce
Management, Novem-
ber 3, 2008, pp. 33–39.
1.30 Davenport, T.H.
“Analytics 3.0.” Har-
vard Business Review,
December, 2013.
1.31 Lewis, M. Moneyball.
New York: Norton, 2003.
1.32 Fox, J. “The Moneyball
Myth.” Bloomberg
Businessweek, October
20, 2011, pp. 110–11.
1.33 Schwartz, J. “Net
Loss.” Slate, Febru-
ary 28, 2013, http://
www.slate.com/
articles/sports/
sports_nut/2013/02/
nba?_stats_gurus_
can_t_work_
together_anymore_
that_s_a_problem.html.
Final PDF to printer
coL27660_ch02_028-059.indd 28 10/17/17 11:34 AM
2
LEARNING GOALS
2.1 What is job performance?
2.2 What is task performance?
2.3 How do organizations identify the behaviors that underlie task performance?
2.4 What is citizenship behavior?
2.5 What is counterproductive behavior?
2.6 What workplace trends are affecting job performance in today’s organizations?
2.7 How can organizations use job performance information to manage employee performance?
After reading this chapter, you should be able to answer the following questions:
Job Performance
INDIVIDUAL
OUTCOMES
INDIVIDUAL
CHARACTERISTICS
GROUP
MECHANISMS
ORGANIZATIONAL
MECHANISMS
Organizational
Culture
Teams:
Characteristics &
Diversity
Ability
Personality &
Cultural Values
Leadership:
Power &
Negotiation
Organizational
Commitment
Job
Performance
Job
Satisfaction
Stress
Motivation
INDIVIDUAL
MECHANISMS
Trust, Justice,
& Ethics
Learning &
Decision Making
Organizational
Structure
Leadership:
Styles &
Behaviors
Teams:
Processes &
Communication
Final PDF to printer
coL27660_ch02_028-059.indd 29 10/17/17 11:34 AM
W
hen you think of General Electric, or GE for short,
company founder, Thomas Edison, might come
to mind. You might also think of light bulbs or
appliances, GE products you may use every day. Depend-
ing on your background, you might also think of medical
equipment, jet engines, or even locomotives. In fact, GE is
a huge multinational conglomerate with a diverse array of
businesses, which include aviation, digital, energy, oil and
gas, power, renewable energy, health care, appliances,
lighting, and transportation. With operations in all these dif-
ferent industries, it’s easy to appreciate the vast range of
jobs that are held by GE’s workforce, which numbers well
over 300,000 full- and part-time employees. You might also
appreciate the management challenge faced by GE. That is,
how does GE ensure that employees in all these different
jobs produce results and perform in ways that are consis-
tent with the company’s values and objectives?
In the mid 1950s GE established a management training
center in Crotonville, New York, just east of the Hudson River,
north of Manhattan about halfway to Poughkeepsie. High
potential managers are sent to Crotonville to learn about
practices that GE believes will promote high performance
across the organization. For example, in the 1970s and 80s,
GE was facing competitive pressure from Asian manufactur-
ers, and the company responded by training managers in
practices, such as Six Sigma, that focused on reducing costs
and increasing efficiency and quality in operations. With the
adoption of these types of practices, GE employees were
no longer just responsible for carrying out tasks involved in
the design and manufacturing of products, but they were
also accountable for measuring and eliminating defects
and reducing waste through continuous improvements in
manufacturing processes. During this period, GE managers
also learned how to push their employees hard to achieve
results with regard to these ends.
The training center in Crotonville continues to serve as a
means of instilling GE’s values to managers. GE continues to
believe this effort is vital to ensuring that employees across
the globe function as one. However, the training that manag-
ers receive at Crotonville has changed its focus to the type of
performance needed for the company to thrive in a constantly
evolving fast-paced global competitive environment. So, for
example, to help enhance creativity and other behaviors nec-
essary for innovation and rapid product development, GE man-
agers receive training on things like mindfulness, emotional
self-regulation, and the importance of constant feedback.
GENERAL ELECTRIC
©PA Images/Alamy
Final PDF to printer
30 C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 30 10/17/17 11:34 AM
J O B P E R F O R M A N C E
We begin our journey through the integrative model of organizational behavior with job perfor-
mance. Why begin with job performance? Because understanding one’s own performance is a
critical concern for any employee, and understanding the performance of employees in one’s unit
is a critical concern for any manager. Consider for a moment the job performance of your univer-
sity’s basketball coach. If you were the university’s athletic director, you might gauge the coach’s
performance by paying attention to various behaviors. How much time does the coach spend on
the road during recruiting season? How effective are the coach’s practices? Are the offensive and
defensive schemes well-designed, and are the plays called during games appropriate? You might
also consider some other behaviors that fall outside the strict domain of basketball. Does the
coach run a clean program? Do players graduate on time? Does the coach represent the university
well during interviews with the media and when in public?
Of course, as your university’s athletic director, you might be tempted to ask a simpler ques-
tion: Is the coach a winner? After all, fans and boosters may not care how good the coach is at
the previously listed behaviors if the team fails to win conference championships or make it deep
into the NCAA tournament. Moreover, the coach’s performance in terms of wins and losses has
important implications for the university because it affects ticket sales, licensing fees, and booster
donations. Still, is every unsuccessful season the coach’s fault? What if the coach develops a well-
conceived game plan but the players repeatedly make mistakes at key times in the game? What if
the team experiences a rash of injuries or inherits a schedule that turns out to be much tougher
than originally thought? What if a few games during the season are decided by fluke baskets or by
bad calls by the referees?
This example illustrates one dilemma when examining job performance. Is performance a set
of behaviors that a person does (or does not) engage in, or is performance the end result of those
behaviors? You might be tempted to believe it’s more appropriate to define performance in terms
of results rather than behaviors. This is because results seem more “objective” and are more con-
nected to the central concern of managers—“the bottom line.” For example, the job performance
of sales employees is often measured by the amount of sales revenue generated by each person
over some time span (e.g., a month, a quarter, a year). For the most part, this logic makes perfect
sense: Sales employees are hired by organizations to generate sales, and so those who meet or
exceed sales goals are worth more to the organization and should be considered high performers.
It’s very easy to appreciate how the sales revenue from each salesperson might be added up and
used as an indicator of a business’s financial performance.
However, as sensible as this logic seems, using results as the primary indicator of job perfor-
mance creates potential problems. First, employees contribute to their organization in ways that
go beyond bottom line results, and so evaluating an employee’s performance based on results
alone might give you an inaccurate picture of which employees are worth more to the organiza-
tion. Second, there’s evidence that managers’ focus on bottom line results can create a bottom line
mentality among employees, which in turn, results in social undermining—sabotaging coworkers’
reputations or trying to make them look bad.1 Similarly, the quest to enhance the bottom line may
lead employees to violate policies and regulations, which in turn, may result in staggering legal fees,
fines, and lost customers. As an example, Wells Fargo bank had long focused on employee sales of
new accounts, and it has come to light that employees of the bank opened as many as two million
accounts without their customers’ consent or knowledge.2 Third, results are often influenced by
factors that are beyond the employees’ control—product quality, competition, equipment, tech-
nology, budget constraints, coworkers, and supervisors, just to name a few. Fourth, even if these
uncontrollable factors are less relevant in a given situation, there’s another problem with a results-
based view of job performance: Results don’t tell you how to reverse a “bad year.” That is, perfor-
mance feedback based on results doesn’t provide people with the information they need to improve
their behavior. Walgreens, for example, uses knowledge of job performance behaviors to create
comprehensive training and development programs so that employees can be effective at various
jobs they may have throughout their careers with the company.3 In sum, given that the field of OB
Final PDF to printer
31C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 31 10/17/17 11:34 AM
aims to understand, predict,
and improve behavior, we refer
to job performance as behav-
ior. We use the term “results”
or “job performance results”
when referring to important
outcomes that are associated
with those behaviors.
So what types of employee
behaviors constitute job per-
formance? To understand
this question, consider that
job performance is formally
defined as the value of the set
of employee behaviors that
contribute, either positively
or negatively, to organiza-
tional goal accomplishment.4 This definition of job performance includes behaviors that are
within the control of employees, but it places a boundary on which behaviors are (and are not)
relevant to job performance. For example, consider the behavior of a server in a restaurant that
prides itself on world-class customer service. Texting a friend during a work break would not
usually be relevant (in either a positive or negative sense) to the accomplishment of organiza-
tional goals. That behavior is therefore not relevant to the server’s job performance. However,
texting in the middle of taking a customer’s order would be relevant (in a negative sense) to
organizational goal accomplishment. That behavior, therefore, is relevant to the server’s job
performance.
W H AT D O E S I T M E A N TO B E A “ G O O D P E R F O R M E R ” ?
Our definition of job performance raises a number of important questions. Specifically, you might
be wondering which employee behaviors fall under the umbrella heading of “job performance.”
In other words, what exactly do you have to do to be a good performer? We could probably spend
an entire chapter just listing various behaviors that are relevant to job performance. However,
those behaviors generally fit into three broad categories.5 Two categories are task performance and
citizenship behavior, both of which contribute positively to the organization. The third category is
counterproductive behavior, which contributes negatively to the organization. The sections that fol-
low describe these broad categories of job performance in greater detail.
TAS K P E R F O R M A N C E
Task performance refers to employee behaviors that are directly involved in the transformation of
organizational resources into the goods or services that the organization produces.6 If you read a
description of a job in an employment ad online, that description will focus on task performance
behaviors—the tasks, duties, and responsibilities that are a core part of the job. Put differently, task
performance is the set of explicit obligations that an employee must fulfill to receive compensa-
tion and continued employment. For a flight attendant, task performance includes announcing
and demonstrating safety and emergency procedures and distributing food and beverages to pas-
sengers. For a firefighter, task performance includes searching burning buildings to locate fire
victims and operating equipment to put out fires. For an accountant, task performance involves
preparing, examining, and analyzing accounting records for accuracy and completeness. Finally,
for an advertising executive, task performance includes developing advertising campaigns and
preparing and delivering presentations to clients.7
2.1
What is job performance?
Geno Auriemma has led
the University of Connecti-
cut women’s basketball
team to 11 national
championships (including
four in a row), six perfect
seasons, and 100 percent
graduation rate for all four-
year players. He’s been the
Naismith College Coach
of the Year seven times
since taking over the team
in 1985. If the Huskies suf-
fered through a couple los-
ing seasons, would Coach
Auriemma be considered a
low performer?
©Mike Carlson/Getty Images
Final PDF to printer
32 C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 32 10/17/17 11:34 AM
Although the specific activities that constitute task performance differ widely from one job
to another, task performance also can be understood in terms of more general categories. One
way of categorizing task performance is to consider the extent to which the context of the job is
routine, changing, or requires a novel or unique solution. Routine task performance involves well-
known responses to demands that occur in a normal, routine, or otherwise predictable way. In
these cases, employees tend to behave in more or less habitual or programmed ways that vary little
from one instance to another.8 As an example of a routine task activity, you may recall watching
an expressionless flight attendant robotically demonstrate how to insert the seatbelt tongue into
the seatbelt buckle before your flight takes off. Seatbelts haven’t really changed since . . . oh . . .
1920, so the instructions to passengers tend to be conveyed the same way, over and over again.
In contrast, adaptive task performance, or more commonly “adaptability,” involves employee
responses to task demands that are novel, unusual, or, at the very least, unpredictable.9 For exam-
ple, on August 2, 2005, Air France Flight 358, carrying 297 passengers and 12 crew members
from Paris, France, to Toronto, Canada, skidded off the runway while landing and plunged into
a ravine. Amid smoke and flames, the flight attendants quickly responded to the emergency and
assisted three-quarters of the 297 passengers safely off the plane within 52 seconds, before the
emergency response team arrived. One minute later, the remaining passengers and 12 crew mem-
bers were out safely.10 From this example, you can see that flight attendants’ task performance
shifted from activities such as providing safety demonstrations and handing out beverages to per-
forming emergency procedures to save passengers’ lives. Although flight attendants receive train-
ing so they can handle emergency situations such as this one, executing these behaviors effectively
in the context of an actual emergency differs fundamentally from anything experienced previously.
Adaptive task performance is becoming increasingly important as globalization, technologi-
cal advances, and knowledge-based work increase the pace of change in the workplace.11 In fact,
adaptive task performance has become crucial in today’s global economy where companies have
been faced with the challenge of becoming more productive with fewer employees on staff. For
example, Sheboygan Falls, Wisconsin–based Johnsonville Sausage feels that adaptability is impor-
tant for employees at all levels of the organization and has invested significant resources in train-
ing to ensure that employees develop competency in this aspect of job performance.12 As another
example, at the German chemical and pharmaceutical company Bayer, the hiring of plant direc-
tors involves the search for candidates who not only possess a wide range of skills and abilities so
that they can adapt to various job demands, but in addition, competence in helping others adapt
to changes that occur in the workplace.13 Table 2-1 provides a number of examples of adaptability
that are relevant to many jobs in today’s economy.14
Finally, creative task performance refers to the degree to which individuals develop ideas or
physical outcomes that are both novel and useful.15 The necessity of including both novelty and
usefulness in the definition of creativity can be illustrated with the following example of what effec-
tive performance for a swimsuit designer involves. Consider first the case of a swimsuit designer
who suggests in a meeting that next season’s line of swimsuits should be made entirely out of
chrome-plated steel. Although this idea might be very novel, for many reasons it’s not likely to be
very useful. Indeed, someone who offered an idea like this would likely be considered silly rather
than creative. Another swimsuit designer suggests in the meeting that swimsuits for next season
should be made out of materials that are attractive and comfortable. Although under some cir-
cumstances such an idea might be useful, the idea is not novel because attractiveness and comfort
are generally accepted design elements for swimsuits. Someone who offered an idea like this might
be appreciated for offering input, but no one would consider this individual’s performance to be
particularly creative. Finally, a third designer for this swimsuit manufacturer suggests that perhaps
a two-piece design would be preferred for women, rather than a more traditional one-piece design.
Although such an idea would not be considered creative today, it certainly was in 1946 when, in
separate but nearly simultaneous efforts, Jacques Heim and Louis Reard introduced the bikini.16
Although you might be tempted to believe that creative task performance is only relevant to
jobs such as artist and inventor, its emphasis has been increasing across a wide variety of jobs.
Indeed, more than half the total wages and salary in the United States are paid to employees
who need to be creative as part of their jobs, and as a consequence, some have argued that we
are at the “dawn of the creative age.”17 This increase in the value of creative performance can be
2.2
What is task performance?
Final PDF to printer
33C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 33 10/17/17 11:34 AM
TABLE 2-1 Behaviors Involved in Adaptability
BEHAVIORS SPECIFIC EXAMPLES
Handling emergencies or
crisis situations
Quickly analyzing options for dealing with danger or crises
and their implications; making split-second decisions based on
clear and focused thinking
Handling work stress Remaining composed and cool when faced with difficult
circumstances or a highly demanding workload or schedule;
acting as a calming and settling influence to whom others can
look for guidance
Solving problems creatively Turning problems upside-down and inside-out to find fresh
new approaches; integrating seemingly unrelated information
and developing creative solutions
Dealing with uncertain and
unpredictable work situations
Readily and easily changing gears in response to unpredict-
able or unexpected events and circumstances; effectively
adjusting plans, goals, actions, or priorities to deal with chang-
ing situations
Learning work tasks, tech-
nologies, and work situations
Quickly and proficiently learning new methods or how to
perform previously unlearned tasks; anticipating change in the
work demands and searching for and participating in assign-
ments or training to prepare for these changes
Demonstrating interpersonal
adaptability
Being flexible and open-minded when dealing with others;
listening to and considering others’ viewpoints and opinions and
altering one’s own opinion when it’s appropriate to do so
Demonstrating cultural
adaptability
Willingly adjusting behavior or appearance as necessary to
comply with or show respect for others’ values and customs;
understanding the implications of one’s actions and adjusting
one’s approach to maintain positive relationships with other
groups, organizations, or cultures
Source: Adapted from E.E. Pulakos, S. Arad, M.A. Donovan, and K.E. Plamondon, “Adaptability in the Workplace:
Development of a Taxonomy of Adaptive Performance,” Journal of Applied Psychology 85 (2000), pp. 612–24. American
Psychological Association.
explained by the rapid technological change and intense competition that mark today’s business
landscape.18 In this context, employee creativity is necessary to spark the types of innovations that
enable organizations to stay ahead of their competition. Because creative ideas do not always get
implemented, it is important to recognize creative performance behaviors, as well as the creative
outcomes that result from those behaviors.19
Now that we’ve given you a general understanding of task performance behaviors, you might be
wondering how organizations identify the sets of behaviors that represent “task performance” for
different jobs. Many organizations identify task performance behaviors by conducting a job analysis.
Although there are many different ways to conduct a job analysis, most boil down to three steps.
First, a list of the activities involved in a job is generated. This list generally results from data from
several sources, including observations, surveys, and interviews of employees. Second, each activ-
ity on this list is rated by “subject matter experts,” according to things like the importance and
frequency of the activity. Subject matter experts generally have experience performing the job or
managing the job and therefore are in a position to judge the importance of specific activities to
the organization. Third, the activities that are rated highly in terms of their importance and fre-
quency are retained and used to define task performance. Those retained behaviors then find their
2.3
How do organizations
identify the behaviors that
underlie task performance?
Final PDF to printer
34 C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 34 10/17/17 11:34 AM
way into training programs as
learning objectives and into
performance evaluation sys-
tems as measures to evaluate
task performance.
As an example, to deter-
mine training objectives for
production workers, Toyota
uses a highly detailed job
analysis process to identify
important tasks as well as the
behaviors necessary to effec-
tively complete those tasks.20
The core job tasks involved in
the job of a bumper-molding
operator, for example, include
“routine core tasks,” “machine tending,” and “quality,” and each of these tasks further consists of
several more detailed steps. For example, routine core tasks include de-molding, trimming, spray-
molding, and sanding. Each of these tasks can be broken down further into more detailed steps,
and in turn, the specific behaviors involved in each step become the focus of the training. For
example, to de-mold the left side of the bumper, the worker must “use left thumb to push along
edge of bumper,” “place pressure in the crease of thumb,” “push toward left side away from mold,”
and “grasp top edge when bumper is released.” Although this level of detail might seem like an
awful lot of analysis for what one might imagine to be a relatively straightforward job, Toyota
competes on the basis of quality and cost, and its success in selling millions of Priuses, Camrys,
Tacomas, and Highlanders each year has been attributed to its ability to train production workers
to follow the standardized and efficient procedures.21
Men’s Wearhouse, the Houston-based retailer, provides another good example of an organiza-
tion that uses task performance information to manage its employees.22 The company first gathers
information about the employee’s on-the-job behaviors. For example, the job of wardrobe consul-
tant involves greeting, interviewing and measuring customers properly, ensuring proper alteration
revenue is collected, and treating customers in a warm and caring manner. After the information
is gathered, senior managers provide feedback and coaching to the employee about which types of
behaviors he or she needs to change to improve. The feedback is framed as constructive criticism
meant to improve an employee’s behavior. Put yourself in the place of a Men’s Wearhouse wardrobe
consultant for a moment. Wouldn’t you rather have your performance evaluated on the basis of
behaviors such as those mentioned above, rather than some overall index of sales? After all, those
behaviors are completely within your control, and the feedback you receive from your boss will be
more informative than the simple directive to “sell more suits next year than you did this year.”
If organizations find it impractical to use job analysis to identify the set of behaviors needed
to define task performance, they can turn to a database the government has created to help with
that important activity. The Occupational Information Network (or O*NET) is an online database
that includes, among other things, the characteristics of most jobs in terms of tasks, behaviors,
and the required knowledge, skills, and abilities (http://www.onetonline.org). Figure 2-1 shows the
O*NET output for a flight attendant’s position, including many of the tasks discussed previously
in this chapter. Of course, O*NET represents only a first step in figuring out the important tasks
for a given job. Many organizations ask their employees to perform tasks that their competitors do
not, so their workforce performs in a unique and valuable way. O*NET cannot capture those sorts
of unique task requirements that separate the most effective organizations from their competitors.
For example, the authors of a book titled Nuts identify “fun” as one of the dominant values of
Southwest Airlines.23 Southwest believes that people are willing to work more productively and cre-
atively in an environment that includes humor and laughter. Consistent with this belief, flight atten-
dant task performance at Southwest includes not only generic flight attendant activities, such as
those identified by O*NET, but also activities that reflect a sense of humor and playfulness. Effec-
tive flight attendants at Southwest tell jokes over the intercom such as, “We’ll be dimming the lights
Toyota production workers
assemble vehicles using
a highly standardized and
efficient set of tasks.
©Eric Gay/AP Images
Final PDF to printer
35C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 35 10/17/17 11:34 AM
in the cabin . . . pushing the light-bulb button will turn your reading light on. However, pushing the
flight attendant button will not turn your flight attendant on.”24 As another example, Nisshinbo
Automotive, a part of the Japanese company Nisshinbo Holdings, was faced with the challenge of
increasing productivity with fewer workers. They developed a system where they not only evaluated
and compensated employees for behaviors reflected in their job descriptions, but also in behaviors
that supported the company’s mission defined more broadly.25 In summary, though O*NET may
be a good place to start, the task information from the database should be supplemented with infor-
mation regarding behaviors that support the organization’s values and strategy.
Before concluding our section on task performance, it’s important to note that task perfor-
mance behaviors are not simply performed or not performed. Although poor performers often fail
to complete required behaviors, it’s just as true that star performers often exceed all expectations
for those behaviors.26 Moreover, although star performers are much rarer than those who perform
poorly or at average levels, they are often quite visible in their fields.27 In fact, you can probably
think of examples of employees who have engaged in task performance that’s truly extraordinary.
Our OB on Screen feature certainly illustrates one!
C I T I Z E N S H I P B E H AV I O R
Sometimes employees go the extra mile by actually engaging in behaviors that are not within their
job description—and thus that do not fall under the broad heading of task performance. This situ-
ation brings us to the second category of job performance, called citizenship behavior, which is
defined as voluntary employee activities that may or may not be rewarded but that contribute to
the organization by improving the overall quality of the setting or context in which work takes
place.28 Have you ever had a coworker or fellow student who was especially willing to help some-
one who was struggling? Who typically attended optional meetings or social functions to support
his or her colleagues? Who maintained a good attitude, even in trying times? We tend to call those
people “good citizens” or “good soldiers.”29 High levels of citizenship behavior earn them such
FIGURE 2-1 O*NET Results for Flight Attendants
O*NET, or Occupational Information Network, is an online government database that lists the characteristics of most
jobs and the knowledge required for each. This sample is for the job of flight attendant.
Final PDF to printer
36 C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 36 10/17/17 11:34 AM
OB ON SCREEN
SULLY
That’s the funny thing, I’ve delivered a million passengers over 40 years in the air, but in the end,
I’m going to be judged by 208 seconds.
With those words, US Airways pilot Chesley Sullenberger (Tom Hanks) laments to First Officer
Jeff Skiles (Aaron Eckart) that, despite years of performing his job effectively, his legacy hinges
on judgments regarding what occurred during a three-and-a-half minute time span, in the movie
Sully (Dir. Clint Eastwood, Flashlight Films, 2016). In this true story, Sullenberger, or Sully for
short, was the pilot of Cactus 1549, which hit a flock of birds, destroying both engines, shortly
after taking off from New York’s LaGuardia Airport. Sully calmly discussed the problem with his
first officer and an air traffic controller, considered options, and ultimately chose to ditch the
aircraft in the Hudson River. Although Sully executed a perfect water landing, and saved the lives
of all 155 souls on board, investigators from the National Transportation Safety Board questioned
his performance that day. Computer and piloted simulations indicated that Sully could have flown
the damaged jet back to LaGuardia, or diverted to Teterboro, a nearby airport in New Jersey.
The opening quote reveals that Sully understood the tension between performance and results.
He was an effective pilot for several decades. Yet his performance was being judged by the results
of a single incident for which he had little control. The movie also illustrates that results are often
in the eye of the beholder. Sully’s decision did result in the loss of a costly aircraft and put the pas-
sengers and the crew at risk, however, the passengers and crew were all saved and each considered
him to be a hero. Ultimately, the investigators came to the same conclusion as Sully’s passengers
and others who referred to the incident as the “Miracle on the Hudson.” The simulations didn’t
take into account the time needed to assess and understand the situation, and there wasn’t any
precedent for losing both engines to a bird strike at such a low altitude in the middle of one of the
most densely populated cities in the world.
©Pictorial Press Ltd/Alamy
titles. Although there are many different types of behaviors that might seem to fit the definition of
citizenship behavior, research suggests two main categories that differ according to who benefits
from the activity: coworkers or the organization (see Figure 2-2).30
The first category of citizenship behavior is the one with which you’re most likely to be familiar:
interpersonal citizenship behavior. Such behaviors benefit coworkers and colleagues and involve
2.4
What is citizenship
behavior?
Final PDF to printer
37C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 37 10/17/17 11:34 AM
assisting, supporting, and developing other organizational members in a way that goes beyond
normal job expectations.31 For example, helping involves assisting coworkers who have heavy
workloads, aiding them with personal matters, and showing new employees the ropes when they
first arrive on the job. Although helping may require a great deal of time and effort, it often makes
a big difference in the lives of others, and for this reason, those who help others often experience
positive emotions and a sense of being energized.32 Do you consider yourself a helpful person?
Check the OB Assessments feature to see how helpful you really are. Courtesy refers to keeping
coworkers informed about matters that are relevant to them. Some employees have a tendency
to keep relevant facts and events secret. Good citizens do the opposite; they keep others in the
loop because they never know what information might be useful to someone else. Sportsmanship
involves maintaining a good attitude with coworkers, even when they’ve done something annoying
or when the unit is going through tough times. Whining and complaining are contagious; good
citizens avoid being the squeaky wheel who frequently makes mountains out of molehills.
Although interpersonal citizenship behavior is important in many different job contexts, it may
be even more important when employees work in small groups or teams. A team with members
who tend to be helpful, respectful, and courteous is also likely to have a positive team atmosphere
in which members trust one another. This type of situation is essential to foster the willingness
of team members to work toward a common team goal rather than goals that may be more self-
serving.33 In fact, if you think about the behaviors that commonly fall under the “teamwork”
heading, you’ll probably agree that most are examples of interpersonal citizenship behavior (see
Chapter 12 on team processes and communication for more discussion of such issues).34
The second category of citizenship behavior is organizational citizenship behavior. These
behaviors benefit the larger organization by supporting and defending the company, working to
improve its operations, and being especially loyal to it.35 For example, voice involves speaking up
and offering constructive suggestions regarding opportunities to improve unit or organizational
functioning or to address problems that could lead to negative consequences for the organiza-
tion.36 Although supervisors may react more positively to employee suggestions that focus on
opportunities and initiatives to enhance the organization rather than on problems that need to be
addressed in order to prevent potential harm, all forms of voice are important to organizational
effectiveness.37 When there is an opportunity, good citizens express their ideas and suggestions
FIGURE 2-2 Types of Citizenship Behaviors
Organizational
Interpersonal
– Helping
– Courtesy
– Sportsmanship
– Voice
– Civic Virtue
– Boosterism
Final PDF to printer
38 C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 38 10/17/17 11:34 AM
OB ASSESSMENTS
HELPING
How helpful are you? This assessment is designed to measure helping, an interpersonal form
of citizenship behavior. Think of the people you work with most frequently, either at school or
at work. The questions refer to these people as your “work group.” Answer each question using
the scale. Then sum up your answers. (Instructors: Assessments on sportsmanship, boosterism,
political deviance, and trait creativity can be found in the PowerPoints in the Connect Library’s
Instructor Resources and in the Connect assignments for this chapter.)
SCORING AND INTERPRETATION
If your scores sum up to 40 or higher, you perform a high level of helping behavior, which means
you frequently engage in citizenship behaviors directed at your colleagues. This is good, as long as
it doesn’t distract you from fulfilling your own job duties and responsibilities. If your scores sum
up to less than 40, you perform a low level of helping behaviors. You might consider paying more
attention to whether your colleagues need assistance while working on their task duties.
Source: L.V. Van Dyne and J.A. LePine, “Helping and Voice Extra-Role Behaviors: Evidence of Construct and Predictive
Validity,” Academy of Management Journal 41 (1998), pp. 108–19.
1
STRONGLY
DISAGREE
2
MODERATELY
DISAGREE
3
SLIGHTLY
DISAGREE
4
NEITHER
DISAGREE
NOR AGREE
5
SLIGHTLY
AGREE
6
MODERATELY
AGREE
7
STRONGLY
AGREE
1. I volunteer to do things for my work group.
2. I help orient new members of my work group.
3. I attend functions that help my work group.
4. I assist others in my group with their work for the benefit of the group.
5. I get involved to benefit my work group.
6. I help others in this group learn about the work.
7. I help others in this group with their work responsibilities.
for positive change rather than remaining silent. Good citizens also react to bad rules or policies
by constructively trying to change them as opposed to passively complaining about them (see
Chapter 3 on organizational commitment for more discussion of such issues).38 Civic virtue refers
to participating in the company’s operations at a deeper-than-normal level by attending voluntary
meetings and functions, reading and keeping up with organizational announcements, and keeping
abreast of business news that affects the company. Boosterism means representing the organiza-
tion in a positive way when out in public, away from the office, and away from work. Think of
friends you’ve had who worked for a restaurant. Did they always say good things about the res-
taurant when talking to you and keep any “kitchen horror stories” to themselves? If so, they were
being good citizens by engaging in high levels of boosterism.
Three important points should be emphasized about citizenship behaviors. First, as you’ve prob-
ably realized, citizenship behaviors are relevant in virtually any job, regardless of the particular
Final PDF to printer
39C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 39 10/17/17 11:34 AM
nature of its tasks,39 and research suggests that these behaviors can boost organizational effective-
ness.40 As examples, research conducted in a paper mill found that the quantity and quality of crew
output were higher in crews that included more workers who engaged in citizenship behavior.41
Research in 30 restaurants also showed that higher levels of citizenship behavior promoted higher
revenue, better operating efficiency, higher customer satisfaction, higher performance quality, less
food waste, and fewer customer complaints.42 Thus, it seems clear that citizenship behaviors have
a significant influence on the bottom line.
Second, because citizenship behaviors are relatively discretionary and influenced by the spe-
cific situation the employee is working in, they can vary significantly over time.43 In other words,
an employee who engages in citizenship behavior during one point in time might not engage in
citizenship behavior at other points in time. As an example, it’s likely that you’ve had a very posi-
tive experience working with another student or colleague on a project and were willing to invest
a great deal of extra effort in order to be helpful. At some point, however, the person with whom
you were working may have done something that made you feel much less positive about the col-
laboration and, as a consequence, you decided to withhold your extra help so that you could focus
your energies elsewhere. In fact, researchers have shown that good citizens can develop citizenship
fatigue, or the sense that one is worn out and on edge from engaging in citizenship.44 Citizenship
fatigue reduces future acts of citizenship, and may be especially likely to occur when good citizens
feel that their extra efforts are not supported, or they experience pressure to continue to engage in
citizenship even when they’re already feeling stretched by other demands.
Third, from an employee’s perspective, it may be tempting to discount the importance of citi-
zenship behaviors—to just focus on your own job tasks and leave aside any “extra” stuff. After all,
citizenship behaviors appear to be voluntary and optional, whereas task performance requirements
are not. However, discounting citizenship behaviors is a bad idea because supervisors don’t always
view such actions as optional. In fact, research on computer salespeople, insurance agents, pet-
rochemical salespeople, pharmaceutical sales managers, office furniture makers, sewing machine
operators, U.S. Air Force mechanics, and first-tour U.S. Army soldiers has shown that citizenship
behaviors relate strongly to supervisor evaluations of job performance, even when differences
in task performance are also considered.45 As we discuss in our OB Internationally feature, the
tendency of supervisors to consider citizenship behaviors in evaluating overall job performance
seems to hold even across countries with vastly different cultures.46 Of course, this issue has a lot
of relevance to you, given that in most organizations, supervisors’ evaluations of employee job per-
formance play significant roles in determining employee pay and promotions. Indeed, employee
citizenship behavior has been found to influence the salary and promotion recommendations
people receive, over and above their task performance.47 Put simply, it pays to be a good citizen.
C O U N T E R P R O D U C T I V E B E H AV I O R
Now we move from the “good soldiers” to the “bad apples.” Whereas task performance and cit-
izenship behavior refer to employee activities that help the organization achieve its goals and
objectives, other activities in which employees engage do just the opposite. This third broad
category of job performance is counterproductive behavior, defined as employee behaviors that
intentionally hinder organizational goal accomplishment. The word “intentionally” is a key aspect
of this definition; these are things that employees mean to do, not things they accidentally do.
Although there are many different kinds of counterproductive behaviors, research suggests that—
like task performance and citizenship behavior—they can be grouped into more specific categories
(see Figure 2-3).48
Property deviance refers to behaviors that harm the organization’s assets and possessions. For
example, sabotage represents the purposeful destruction of physical equipment, organizational pro-
cesses, or company products. Do you know what a laser disc is? Probably not—and the reason you
don’t is because of sabotage. A company called DiscoVision (a subsidiary of MCA) manufactured
laser discs in the late 1970s, with popular movie titles like Smokey and the Bandit and Jaws retailing
for $15.95. Although this price is approximately the same as a new movie on a Blu-ray disc today,
it was far less than the $50–$100 needed to buy videocassettes (which were of inferior quality)
at the time. Unfortunately, laser discs had to be manufactured in clean rooms because specks of
2.5
What is counterproductive
behavior?
Final PDF to printer
40 C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 40 10/17/17 11:34 AM
OB INTERNATIONALLY
As we’ve already explained, citizenship behavior tends to be viewed as relatively voluntary because
it’s not often explicitly outlined in job descriptions or directly rewarded. However, people in orga-
nizations vary in their beliefs regarding the degree to which citizenship behavior is truly voluntary,
and these differences have important implications. As an example, consider a situation in which
an employee engages in citizenship behaviors because of his or her belief that the behaviors are
part of the job. However, this employee works for a supervisor who believes that citizenship behav-
iors are unnecessary. Assuming that the supervisor would not consider the citizenship behaviors
on a performance evaluation, the employee would likely react negatively because he or she has
not been recognized for putting effort into activities that help other members of the organization.
So what types of factors cause differences in beliefs regarding whether or not citizenship behav-
ior is discretionary? One factor that would appear to be important is national culture. It is widely
believed that the culture in countries like the United States, Canada, and the Netherlands encour-
ages behaviors that support competition and individual achievement, whereas the culture in coun-
tries like China, Colombia, and Portugal encourages behaviors that promote cooperation and
group interests over self-interests. On the basis of these cultural differences, it seems logical to
expect that people from the former set of countries would consider citizenship behavior relatively
unimportant compared with people from the latter set of countries. In reality, however, the find-
ings from one recent study comparing Canadian and Chinese managers found that this cultural
stereotype was simply not true. Managers in both countries not only took citizenship behavior
into account when evaluating overall job performance, but the weight they gave to citizenship
behavior in their overall evaluation of employees was the same. One explanation for this result is
that the realities of running effective business organizations in a global economy have a signifi-
cantly stronger impact on managerial practices than do cultural norms. It is important to note
that the results of this study do not mean that we can ignore culture when trying to understand
employee job performance. In fact, there are reasons to believe that cultural differences are impor-
tant to consider when designing and implementing systems to manage employee performance.
Sources: F.F.T. Chiang and T.A. Birtch, “Appraising Performance across Borders: An Empirical Examination of the Pur-
poses and Practices of Performance Appraisal in a Multi-Country Context.” Journal of Management Studies 47 (2010),
pp. 1365–92; G.Hofstede, “Cultures and Organizations: Software of the Mind,” McGraw-Hill, New York, 1991; E.W. Morri-
son, “Role Definitions and Organizational Citizenship Behavior: The Importance of the Employee’s Perspective.” Academy
of Management Journal 37 (1994), pp. 1543–67; and M.Rotundo and J.L. Xie, “Understanding the Domain of Counterpro-
ductive Work Behavior in China.” International Journal of Human Resource Management 86 (2008), pp. 856–77.
dust or debris could cause the image on the television to freeze, repeat, skip, or drop out. When
MCA merged with IBM in 1979, the morale of the employees fell, and counterproductive behaviors
began to occur. Employees sabotaged the devices that measured the cleanliness of the rooms. They
also began eating in the rooms—even popping potato chip bags to send food particles into the air.
This sabotage eventually created a 90 percent disc failure rate that completely alienated customers.
As a result, despite its much lower production costs and higher-quality picture, the laser disc disap-
peared, and the organizations that supported the technology suffered incredible losses.49
Even if you’ve never heard of the laser disc, you’ve certainly eaten in a restaurant. The cost
of counterproductive behaviors in the restaurant industry is estimated to be 2–3 percent of rev-
enues per year, but what may be more disturbing is the nature of those counterproductive behav-
iors.50 Thirty-one percent of employees who responded to a survey knowingly served improperly
prepared food, 13 percent intentionally sabotaged the work of other employees, and 12 percent
admitted to intentionally contaminating food they prepared or served to a customer (yuck!). At
a minimum, such sabotage of the restaurant’s product can lead to a bad meal and a customer’s
Final PDF to printer
41C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 41 10/17/17 11:34 AM
promise to never return to that establishment. Of course, such behaviors can also lead to food poi-
soning, health code violations, and a damaging lawsuit. Employees who sabotage customers may
do so, under certain circumstances, as a response to perceived mistreatment by customers. It’s
important to note, however, that retaliation in this manner is not justified, so it’s still considered a
form of counterproductive behavior.51
Theft represents another form of property deviance and can be just as expensive as sabotage (if
not more). Research has shown that up to three-quarters of all employees have engaged in coun-
terproductive behaviors such as theft, and the cost of these behaviors is staggering.52 For example,
one study estimated that 47 percent of store inventory shrinkage was due to employee theft and
that this type of theft costs organizations approximately $14.6 billion per year.53 Maybe you’ve had
friends who worked at a restaurant or bar and been lucky enough to get discounted (or even free)
food and drinks whenever you wanted. Clearly that circumstance is productive for you, but it’s
quite counterproductive from the perspective of the organization.
Production deviance is also directed against the organization but focuses specifically on reduc-
ing the efficiency of work output. Wasting resources, when employees use too many materials or
too much time to do too little work, is the most common form of production deviance. Manufac-
turing employees who use too much wood or metal are wasting resources as are restaurant employ-
ees who use too many ingredients when preparing the food. Workers who work too slowly or take
too many breaks are also wasting resources because “time is money” (see Chapter 3 on organiza-
tional commitment for more discussion of such issues). Substance abuse represents another form
of production deviance. If employees abuse drugs or alcohol while on the job or shortly before
coming to work, then the efficiency of their production will be compromised because their work
will be done more slowly and less accurately.
In contrast to property and production deviance, political deviance refers to behaviors that inten-
tionally disadvantage other individuals rather than the larger organization. Gossiping—casual con-
versations about other people in which the facts are not confirmed as true—is one form of political
deviance. Everyone has experienced gossip at some point in time and knows the emotions people
feel when they discover that other people have been talking about them. Such behaviors under-
mine the morale of both friendship groups and work groups. Incivility represents communication
Source: Adapted from S.L. Robinson and R.J. Bennett, “A Typology of Deviant Workplace Behaviors: A Multidimensional
Scaling Study,” Academy of Management Journal 38 (1995), pp. 555–72.
FIGURE 2-3 Types of Counterproductive Behaviors
Production Deviance
– Wasting resources
– Substance abuse
Property Deviance
– Sabotage
– Theft
Political Deviance
– Gossiping
– Incivility
Personal Aggression
– Harassment
– Abuse
Organizational
Interpersonal
Minor Serious
Final PDF to printer
42 C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 42 10/17/17 11:34 AM
that’s rude, impolite, discourte-
ous, and lacking in good man-
ners.54 The erosion of manners
seems like a society-wide phe-
nomenon, and the workplace
is no exception. Taken one
by one, these political forms
of counterproductive behav-
ior may not seem particularly
serious to most organizations.
However, in the aggregate,
acts of political deviance can
create an organizational cli-
mate characterized by distrust
and unhealthy competitive-
ness. Beyond the productivity
losses that result from a lack of
cooperation among employees, organizations with this type of climate likely cannot retain good
employees. Moreover, there’s some evidence that gossip and incivility can “spiral”—meaning that
they gradually get worse and worse until some tipping point, after which more serious forms of
interpersonal actions can occur.55
Those more serious interpersonal actions may involve personal aggression, defined as hostile
verbal and physical actions directed toward other employees. Harassment falls under this heading
and occurs when employees are subjected to unwanted physical contact or verbal remarks from a
colleague. Abuse also falls under this heading; it occurs when an employee is assaulted or endan-
gered in such a way that physical and psychological injuries may occur. You might be surprised
to know that even the most extreme forms of personal aggression are actually quite prevalent in
organizations. For example, on average in the United States about one employee each week is mur-
dered by a current or previous coworker.56 As another example, about 54 million Americans are
bullied at work each year.57 Bullying involves psychological harassment and abuse directed toward
an individual or group of individuals.58 Examples of bullying include humiliation, social isolation,
and systematic maltreatment, all of which results in the target of these behaviors feeling helpless.59
It might surprise you to learn that the source of the bullying is often a boss. We don’t believe that
bosses are inherently evil, but some undoubtedly lose sight of the line between being tough and
being a bully, and that what matters isn’t the intent of the behavior, but rather the perception of
the person to whom the behavior is targeted.60 Acts of personal aggression can also be quite costly
to organizations. For example, Mitsubishi Motor Manufacturing of America settled a class action
sexual harassment lawsuit for $34 million after women at a plant in Normal, Illinois, complained of
widespread and routine groping, fondling, lewd jokes, lewd behavior, and pornographic graffiti.61
Four points should be noted about counterproductive behavior. First, there’s evidence that peo-
ple who engage in one form of counterproductive behavior also engage in others.62 In other words,
such behaviors tend to represent a pattern of behavior rather than isolated incidents. Second, like
citizenship behavior, counterproductive behavior is relevant to any job. It doesn’t matter what
the job entails; there are going to be things to steal, resources to waste, and people to be uncivil
toward. Third, counterproductive behavior may be contagious and its negative consequences may
ripple throughout an organization.63 For example, researchers have found evidence that abusive
behavior on the part of supervisors may result in counterproductive behavior among subordinates
and vice versa.64 Researchers have also shown that supervisors who engage in incivility toward
subordinates create a negative climate in their work groups, which reduces voice, and in turn,
group effectiveness.65 Fourth, it’s often surprising which employees engage in counterproductive
behavior. You might be tempted to guess that poor performers would be the ones who engage in
high levels of counterproductive behavior, and that highly effective task performers do not engage
in counterproductive behavior. In fact, however, there’s only a weak negative correlation between
task performance and counterproductive behavior,66 and if you think about it for a moment, you
can probably come up with a few examples of people who are very effective in their jobs but who
Counterproductive behav-
ior by employees can be
destructive to the organiza-
tion’s goals. In some set-
tings, such as a restaurant,
it can even be a problem
for customers.
©Frank Wartenberg/Getty Images
Final PDF to printer
43C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 43 10/17/17 11:34 AM
OB AT THE BOOKSTORE
MASTERING CIVILITY
by Christine Porath (New York: Grand Central Publishing, 2016).
I’m disappointed to report that the incivility
problem still hasn’t been solved. In fact, it has
gotten much worse. All of us desperately need
to change this reality for the sake of people and
organizations.
With those words, author Christine Porath out-
lines the book’s main thesis, which is that incivil-
ity is a problem in society and the workplace, and
that we all need to be kinder to each other and
to take concerted action to contribute to greater
civility. On the one hand, this message may seem
quite familiar. Does Aesop’s fable of the Lion and
the Mouse come to mind? On the other hand,
the book is filled with workplace examples and
research findings which vividly underscore the rel-
evance of incivility to managers and organizations.
In the first part of her book, Porath overviews
surveys that indicate incivility has reached “crisis
proportions” and is getting worse. She then pro-
vides examples of incivility such as publicly mock-
ing and belittling people, pointing our mistakes
in an overly harsh and insulting way, and talking
calls or texting in the middle of a conversation or
meeting. Although it might seem obvious that behaviors such as these are inappropriate, Porath
identifies costs to these behaviors that may not be so obvious. As examples, people who are
subject to or witness incivility experience impairment to their ability to process information and
they also experience significant stress. To make matters worse, people who witness incivility are
more likely to engage in incivility themselves. So it turns out that acts of incivility are not merely
isolated incidents, they’re also contagious!
The book also provides a terrific balance of perspectives. First, it offers much to those who are
interested in self-improvement. As an example, there’s a 32-item test that readers can use to
gauge their level of incivility. There are also specific suggestions that interested readers can use to
increase their own civility, such as seeking feedback from colleagues. Second, the book offers sug-
gestions to managers who might be interested in promoting greater civility among employees. As
an example, the author describes how interviews could be used to screen potential employees for
incivility and how existing employees could be coached to enhance their civility.
©Roberts Publishing Services
also engage in high levels of counterproductive behavior. Sometimes the best task performers are
the ones who can best get away with counterproductive actions, because they’re less likely to be
suspected or blamed. Moreover, counterproductive behaviors might even be tolerated for a while
where the individual is able to effectively accomplish very challenging tasks. Fortunately, as our
OB at the Bookstore feature suggests, there may be ways of effectively managing certain types of
counterproductive behaviors.
Final PDF to printer
44 C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 44 10/17/17 11:34 AM
S U M M A RY: W H AT D O E S I T M E A N TO B E A
“G O O D P E R F O R M E R” ?
So what does it mean to be a “good performer”? As shown in Figure 2-4, being a good per-
former means a lot of different things. It means employees are good at the particular job tasks
that fall within their job description, whether those tasks are routine or require adaptability or
FIGURE 2-4 What Does It Mean to Be a “Good Performer”?
Interpersonal
– Helping
– Courtesy
– Sportsmanship
Organizational
– Voice
– Civic virtue
– Boosterism
Property Deviance
– Sabotage
– Theft
Production Deviance
– Wasting resources
– Substance abuse
Political Deviance
– Gossiping
– Incivility
Personal Aggression
– Harassment
– Abuse
COUNTER-
PRODUCTIVE
BEHAVIOR
CITIZENSHIP
BEHAVIOR
TASK
PERFORMANCE
Routine
Adaptive
JOB
PERFORMANCE
Creative
Final PDF to printer
45C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 45 10/17/17 11:34 AM
creativity. But it also means that employees engage in citizenship behaviors directed at both
coworkers and the larger organization. It also means that employees refrain from engaging in
the counterproductive behaviors that can badly damage the climate of an organization. The
goal for any manager is, therefore, to have employees who fulfill all three pieces of this good
performer description.
As you move forward in this book, you’ll notice that almost every chapter includes a descrip-
tion of how that chapter’s topic relates to job performance. For example, Chapter 4 on job
satisfaction will describe how employees’ feelings about their jobs affect their job performance.
You’ll find that some chapter topics seem more strongly correlated with task performance,
whereas other topics are more strongly correlated with citizenship behavior or counterproduc-
tive behavior. Such differences will help you understand exactly how and why a given topic, be
it satisfaction, stress, motivation, or something else, influences job performance. By the end of
the book, you’ll have developed a good sense of the most powerful drivers of job performance.
T R E N D S A F F E C T I N G P E R F O R M A N C E
Now that we’ve described exactly what job performance is, it’s time to describe some of the trends
that affect job performance in the contemporary workplace. Put simply, the kinds of jobs employ-
ees do are changing, as is the way workers get organized within companies. These trends put pres-
sure on some elements of job performance while altering the form and function of others.
K N OW L E D G E WO R K
Historically speaking, research on organizational behavior has focused on the physical aspects
of job performance. This focus was understandable, given that the U.S. economy was indus-
trial in nature and the productivity of the employees who labored in plants and factories was
of great concern. However, by the early 1990s, the majority of new jobs required employees to
engage in cognitive work, applying theoretical and analytical knowledge acquired through edu-
cation and continuous learning.67 Statistics from the U.S. Department of Labor confirm that
this type of work, also called knowledge work, is becoming more prevalent than jobs involving
physical activity.68
In addition to being more cognitive, knowledge work tends to be more fluid and dynamic in
nature. Facts, data, and information are always changing. Moreover, as time goes by, it becomes
easier to access more and more of these facts and data, using Google on an iPhone for example.
In addition, the tools used to do knowledge work change quickly, with software, databases, and
computer systems updated more frequently than ever. As those tools become more powerful, the
expectations for completing knowledge work become more ambitious. After all, shouldn’t reports
and presentations be more comprehensive and finished more quickly when every book used to
create them is available online 24/7 rather than at some library? In fact, as many have recently
noted, expectations regarding knowledge work can become overwhelming for employees, and as a
consequence, new and innovative ways of performing this type of work may be necessary.69
S E RV I C E WO R K
One of the largest and fastest growing sectors in the economy is not in industries that produce
goods but rather in industries that provide services. Service work, or work that provides non-
tangible goods to customers through direct electronic, verbal, or physical interaction, accounts
for approximately 55 percent of the economic activity in the United States,70 and about
20 percent of the new jobs created are service jobs, trailing only professional services in terms
of growth.71 Retail salespersons, customer service representatives, and food service workers
represent the bulk of that service job growth. By comparison, maintenance, repair, construc-
tion, and production jobs are projected to account for only 4–7 percent of new jobs over the
next several years.
2.6
What workplace trends are
affecting job performance
in today’s organizations?
Final PDF to printer
46 C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 46 10/17/17 11:34 AM
The increase in service jobs has a num-
ber of implications for job performance. For
example, the costs of bad task performance
are more immediate and more obvious. When
customer service representatives do their job
duties poorly, the customer is right there to
notice. That failure can’t be hidden behind
the scenes or corrected by other employees
chipping in before it’s too late. In addition,
service work contexts place a greater pre-
mium on high levels of citizenship behavior
and low levels of counterproductive behav-
ior. If service employees refuse to help one
another or maintain good sportsmanship, or
if they gossip and insult one another, those negative emotions get transmitted to the customer during
the service encounter. Maintaining a positive work environment therefore becomes even more vital.
In fact, some very notable organizations compete successfully by placing special emphasis on
the performance of people who do service work. Amazon, for example, believes that the best way
to ensure that customers keep using its website to purchase merchandise is to ensure custom-
ers are satisfied with their experience, especially when a transaction goes wrong, such as if mer-
chandise arrives broken or an order doesn’t ship because the product is back ordered.72 Amazon
customer service employees receive a great deal of training so that they can provide timely and
consistent responses to customers who have questions or problems. In fact, customer service is so
important to Amazon that each and every employee, including CEO Jeff Bezos, spends two days
a year answering customer service calls.73 Apparently all this training has paid off: Amazon now
ranks number one in customer service quality, scoring above companies such as The Ritz-Carlton
and Lexus, which are famous for providing world-class customer service.74
A P P L I C AT I O N : P E R F O R M A N C E M A N AG E M E N T
Now that we’ve described what job performance is, along with some of the workplace trends that
affect it, it’s time to discuss how organizations use job performance information. Good companies
understand the linkage between employee job performance and organizational performance, and
as a consequence they invest resources collecting information about employee performance so that
it can be managed in a way that helps the organization achieve its mission.75 In this section, we
describe general ways in which job performance information is used to manage employee perfor-
mance. We spotlight four of the most representative practices: management by objectives, behav-
iorally anchored rating scales, 360-degree feedback, and forced ranking. We’ll also discuss how
social networking software is being used for performance management purposes in organizations.
M A N AG E M E N T BY O B J E C T I V E S
Management by objectives (MBO) is a management philosophy that bases an employee’s evalu-
ations on whether the employee achieves specific performance goals.76 How does MBO work?
Typically, an employee meets with his or her manager to develop a set of mutually agreed-upon
objectives that are measurable and specific (see Chapter 6 on motivation for more discussion of
such issues). In addition, the employee and the manager agree on the time period for achieving
those objectives and the methods used to do so. An example of a performance objective for a line
manager in a factory might be something like, “Reducing production waste by 35 percent within
three months by developing and implementing new production procedures.” Employee perfor-
mance then can be gauged by referring to the degree to which the employee achieves results that
are consistent with the objectives. If the line manager cuts production waste by 37 percent within
2.7
How can organizations use
job performance informa-
tion to manage employee
performance?
Amazon CEO Jeff Bezos
stresses the importance of
customer service.
©Marcus R. Donner/AP Images
Final PDF to printer
47C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 47 10/17/17 11:34 AM
three months, the manager’s performance would be deemed effective, whereas if the manager only
cuts production waste by 2 percent, his or her performance would be deemed ineffective. MBO is
best suited for managing the performance of employees who work in contexts in which objective
measures of performance can be quantified.
B E H AV I O R A L LY A N C H O R E D R AT I N G S CA L E S
You might have noticed that MBO emphasizes the results of job performance as much as it does
the performance behaviors themselves. In contrast, behaviorally anchored rating scales (BARS)
measure performance by directly assessing job performance behaviors. The BARS approach uses
“critical incidents”—short descriptions of effective and ineffective behaviors—to create a measure
that can be used to evaluate employee performance. As an example of a BARS approach, consider
the measure of task performance shown in Table 2-2, which focuses on the “planning, organizing,
and scheduling” dimension of task performance for a manager.77 The rater reads the behaviors on
the right column of the measure, and then selects a rating, in the left column, that corresponds to
the behavior that best matches actual observations of the manager’s behavior.78
Source: Adapted from D.G. Shaw, C.E. Schneier, and R.W. Beatty, “Managing Performance with a Behaviorally Based
Appraisal System,” Applying Psychology in Business: The Handbook for Managers and Human Resource Professionals, ed.
J.W. Jones, B.D. Steffy, and D.W. Bray (Lexington, MA: Lexington Books, 2001), pp. 314–25.
TABLE 2-2 BARS Example for “Planning, Organizing, and Scheduling”
RATING BEHAVIORAL ANCHORS
[ 7 ] Excellent • Develops a comprehensive project plan, documents it well,
obtains required approval, and distributes the plan to all
concerned.
[ 6 ] Very Good • Plans, communicates, and observes milestones; states week
by week where the project stands relative to plans. Maintains
up-to-date charts of project accomplishment and backlogs and
uses these to optimize any schedule modifications required.
• Experiences occasional minor operational problems but
communicates effectively.
[ 5 ] Good • Lays out all the parts of a job and schedules each part to
beat schedule; will allow for slack.
• Satisfies customer’s time constraints; time and cost overruns
occur infrequently.
[ 4 ] Average • Makes a list of due dates and revises them as the project
progresses, usually adding unforeseen events; investigates
frequent customer complaints.
• May have a sound plan but does not keep track of mile-
stones; does not report slippages in schedule or other prob-
lems as they occur.
[ 3 ] Below Average • Plans are poorly defined; unrealistic time schedules are common.
• Cannot plan more than a day or two ahead; has no concept
of a realistic project due date.
[ 2 ] Very Poor • Has no plan or schedule of work segments to be performed.
• Does little or no planning for project assignments.
[ 1 ] Unacceptable • Seldom, if ever, completes project because of lack of plan-
ning and does not seem to care.
• Fails consistently due to lack of planning and does not
inquire about how to improve.
Final PDF to printer
48 C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 48 10/17/17 11:34 AM
Typically, supervisors rate several performance dimensions using BARS and score an employ-
ee’s overall job performance by taking the average value across all the dimensions. Because the
critical incidents convey the precise kinds of behaviors that are effective and ineffective, feedback
from BARS can help an employee develop and improve over time. That is, employees can develop
an appreciation of the types of behaviors that would make them effective. Such information pro-
vides a nice complement to MBO, which is less capable of providing specific feedback about why
an objective might have been missed.
3 6 0 – D E G R E E F E E D B AC K
The 360-degree feedback approach involves collecting performance information not just from
the supervisor but from anyone else who might have firsthand knowledge about the employ-
ee’s performance behaviors. These other sources of performance information typically include
the employee’s subordinates, peers, and customers. With the exception of the supervisor’s rat-
ings, the ratings are combined so that the raters can remain anonymous to the employee. Most
360-degree feedback systems also ask the employee to provide ratings of his or her own perfor-
mance. The hope is that this 360-degree perspective will provide a more balanced and comprehen-
sive examination of performance. By explicitly comparing self-provided ratings with the ratings
obtained from others, employees can develop a better sense of how their performance may be
deficient in the eyes of others and exactly where they need to focus their energies to improve.
Although the information from a 360-degree feedback system can be used to evaluate employ-
ees for administrative purposes such as raises or promotions, there are problems with that sort
of application. First, because ratings vary across sources, there is the question of which source is
most “correct.” Even if multiple sources are taken into account in generating an overall perfor-
mance score, it’s often unclear how the information from the various sources should be weighted.
Second, raters may give biased evaluations if they believe that the information will be used for
compensation, as opposed to just skill development. Peers in particular may be unwilling to pro-
vide negative information if they believe it will harm the person being rated. As a result, 360-degree
feedback is best suited to improving or developing employee talent, especially if the feedback is
accompanied by coaching about how to improve the areas identified as points of concern.
F O R C E D R A N K I N G
One of the most notable practices that Jack Welch, Fortune’s Manager of the 20th Century,79
used to manage his workforce at General Electric involved evaluations that make clear distinc-
tions among employees in terms of their job performance. Specifically, Welch employed a system
that differentiated employees using the “vitality curve,” depicted in Figure 2-5. Managers were
required to rank all of their subordinates, and the rankings were used to place employees in one
of three categories: the top 20 percent (A players), the vital middle 70 percent (B players), or
the bottom 10 percent (C players). The A players were thought to possess “the four Es of GE
leadership: very high energy levels, the ability to energize others around common goals, the edge
to make tough yes-and-no decisions, and finally the ability to consistently execute and deliver on
their promises.”80 The B players were the focus of development. According to Welch, B players
are the backbone of the company but lack the passion of As. The C players refer to those employ-
ees who could not get the job done and were let go. The system was taken so seriously at GE that
managers who couldn’t differentiate their people tended to find themselves in the C category.81
Estimates are that about 20 percent of Fortune 500 companies adopted some variant of Welch’s
forced ranking system, also known as “rank and yank” or the “dead man’s curve.”82 However,
there are some important limitations to this system of performance management. For example,
some believe the system is inherently unfair because it forces managers to give bad evaluations
to employees who may be good performers, just to reach a pre-established percentage. As other
examples, employees may become competitive with one another to avoid finding themselves in a
lower category, or they may avoid stepping outside the bounds of routine task behaviors for fear of
standing out or making a mistake. Unfortunately, these behaviors are the exact opposite of what
may be needed in today’s team-based organizations that requite cooperativeness and creativity.
Final PDF to printer
49C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 49 10/17/17 11:34 AM
For these reasons, organizations today (including GE) have moved away from performance man-
agement systems that rely upon forced ranking of employees.83
S O C I A L N E T WO R K I N G SYST E M S
Most of you reading this book are familiar with social networking services such as Facebook and
Twitter. Well, this technology has recently been applied in organizational contexts to develop
and evaluate employee job performance.84 As an example, Accenture uses a Facebook-styled pro-
gram called “Performance Multiplier,” which requires that employees post and update weekly
and quarterly goals. Managers then monitor the information and provide feedback.85 As another
example, a Toronto-based software company called Rypple uses a Twitter-like program to enable
employees to post questions about their own performance so that other employees can give them
anonymous feedback.86 Although the effectiveness of social networking applications for perfor-
mance evaluation and employee development purposes has not been studied scientifically, there
are some advantages that make us believe that they will grow in popularity. For example, these
types of systems provide performance information that is much more timely, relative to tradi-
tional practices that measure performance quarterly or even yearly. Although it might be unpleas-
ant to learn from your peers that a presentation you gave was boring, it’s much better than giving
50 boring presentations over the course of the year and then getting the news from your boss.
FIGURE 2-5 Jack Welch’s Vitality Curve
“Top 20” “The Vital 70” “Bottom 10”
Source: Adapted from “Jack” by Jack Welch with John A. Byrne, John F. Welch Jr. Foundation, 2001.
2.1 Job performance is the set of employee behaviors that contribute to organizational goal
accomplishment. Job performance has three dimensions: task performance, citizenship
behavior, and counterproductive behavior.
2.2 Task performance includes employee behaviors that are directly involved in the transforma-
tion of organizational resources into the goods or services that the organization produces.
Examples of task performance include routine task performance, adaptive task performance,
and creative task performance.
TA K E AWAY S
Final PDF to printer
50 C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 50 10/17/17 11:34 AM
2.1 Describe your “job” as a student in terms of the job performance dimensions discussed
in this chapter. What would be the benefit of approaching student performance from a
behavior perspective rather than from an outcome (grades) perspective? What would the
downsides of this approach be? How would grading policies in your classes have to change
to accommodate a behavior approach to student performance?
2.2 Describe the job that you currently hold or hope to hold after graduation. Now look up that
job in the O*NET database. Does the profile of the job fit your expectations? Are any task
behaviors missing from O*NET’s profile?
2.3 Describe a job in which citizenship behaviors would be especially critical to an organiza-
tion’s functioning, and one in which citizenship behaviors would be less critical. What is it
about a job that makes citizenship more important?
D I S C U S S I O N Q U E S T I O N S
K E Y T E R M S
• Job performance p. 31
• Task performance p. 31
• Routine task performance p. 32
• Adaptive task performance p. 32
• Creative task performance p. 32
• Job analysis p. 33
• Occupational Information
Network (O*NET) p. 34
• Citizenship behavior p. 35
• Interpersonal citizenship
behavior p. 36
• Helping p. 37
• Courtesy p. 37
• Sportsmanship p. 37
• Organizational citizenship
behavior p. 37
• Voice p. 37
• Civic virtue p. 38
• Boosterism p. 38
• Counterproductive behavior p. 39
• Property deviance p. 39
• Sabotage p. 39
• Theft p. 41
• Production deviance p. 41
• Wasting resources p. 41
• Substance abuse p. 41
• Political deviance p. 41
• Gossiping p. 41
• Incivility p. 41
• Personal aggression p. 42
• Harassment p. 42
• Abuse p. 42
• Knowledge work p. 45
• Service work p. 45
• Management by objectives
(MBO) p. 46
• Behaviorally anchored rating
scales (BARS) p. 47
• 360-degree feedback p. 48
• Forced ranking p. 48
2.3 Organizations gather information about relevant task behaviors using job analysis and O*NET.
2.4 Citizenship behaviors are voluntary employee activities that may or may not be rewarded but
that contribute to the organization by improving the overall quality of the setting in which
work takes place. Examples of citizenship behavior include helping, courtesy, sportsman-
ship, voice, civic virtue, and boosterism.
2.5 Counterproductive behaviors are employee behaviors that intentionally hinder organiza-
tional goal accomplishment. Examples of counterproductive behavior include sabotage,
theft, wasting resources, substance abuse, gossiping, incivility, harassment, and abuse.
2.6 A number of trends have affected job performance in today’s organizations. These trends
include the rise of knowledge work and the increase in service jobs.
2.7 MBO, BARS, 360-degree feedback, and forced ranking practices are four ways that organiza-
tions can use job performance information to manage employee performance.
Final PDF to printer
51C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 51 10/17/17 11:34 AM
GE has played an influential role in managerial practice, in part, because of a highly charismatic
CEO named Jack Welch, who ran the company from 1981 to 2001. In light of intense competi-
tive pressures and the commoditization of many of GE products, Welch focused on goals related
to costs, efficiency, and operational excellence, and he instituted practices that reinforced
employee behaviors to ensure that his goals could be met. As an example, Welch advocated an
annual job performance review process that drew sharp distinctions between effective and inef-
fective employees. He felt that the best way to do this was to have managers rank employees rela-
tive to their peers and to fire the bottom 10 percent. Welch’s hard-nosed approach to managing
the performance of his employees led GE to great success during his tenure.
Welch’s successor at GE, Jeff Immelt, recognized that a new set of employee behaviors was
necessary to compete in a changing competitive environment where technology and innovation are
making product life cycles shorter. Rather than focusing on doing things in the most cost-effective
and efficient way, and without error, employees need to take risks and test new ideas, and incor-
porate learning from errors into deliverables. With this shift in thinking, Immelt moved GE away
from many of the rigid practices that Welch implemented, including the “rank and yank” annual
performance review system. Immelt and others at the company came to believe that the system
promoted competitiveness rather than cooperation, and that it had become a time-consuming ritual
that hindered the type of risk taking necessary for the company to succeed in the 21st century.
In fact, GE has moved away from formalized annual reviews of employee job performance
altogether. Rather than rating employees each year on a scale that results in labels such as “role
model,” “strong contributor,” or “unsatisfactory,” the company has adopted a smartphone app
called PD@GE, which facilitates ongoing performance feedback throughout the year. Manag-
ers are expected to have frequent discussions, or “touchpoints,” with employees on short-term
priorities so that discrepancies can be fixed quickly. Employees can also use the app to request
feedback from others in the organization so that they have a better understanding of whether
they should continue to do something or to change what they are doing. Although there are still
open questions regarding how the system can be used to support compensation decisions, the
company is convinced that it will provide feedback to employees that is more relevant and timely.
2.1 How well do you think that Jack Welch’s performance review system evaluated employee
job performance (as we have defined it in this chapter)? Which specific dimensions of job
performance do you think his system emphasized?
2.2 Describe advantages of the PD@GE app as a means of evaluating employee job performance.
2.3 Describe disadvantages of the PD@GE app. Explain why managers with longer tenure at
GE may have doubts about the effectiveness of the PD@GE app. What could be done to
alleviate potential concerns?
Sources: M. LaMagna, “Why Major Companies Are Getting Rid of Traditional Performance Reviews,” Marketwatch, July 12,
2016, http://www.marketwatch.com/story/why-major-companies-are-getting-rid-of-traditional-performance-reviews-2016-
06-06; M. Nisen, “How Millennials Forced GE to Scrap Performance Reviews,” The Atlantic (from the archive of partner
QUARTZ), August 18, 2015, https://www.theatlantic.com/politics/archive/2015/08/how-millennials-forced-ge-to-scrap-
performance-reviews/432585/; R. Silverman, “GE Re-Engineers Performance Reviews, Pay Practices.” The Wall Street
Journal, June 8, 2016, https://www.wsj.com/articles/ge-re-engineers-performance-reviews-pay-practices-1465358463; and
R. Silverman, “GE Does Away with Employee Ratings,” The Wall Street Journal, July 26, 2016, https://www.wsj.com/
article_email/ge-does-away-with-employee-ratings-1469541602-lMyQjAxMTA2ODI2NzEyODcyWj.
C A S E : G E
2.4 Figure 2-3 classifies production deviance and political deviance as more minor in nature
than property deviance and personal aggression. When might those “minor” types of coun-
terproductive behavior prove especially costly?
2.5 Consider how you would react to 360-degree feedback. If you were the one receiving the feed-
back, whose views would you value most: your manager’s or your peer’s? If you were asked to
assess a peer, would you want your opinion to affect that peer’s raises or promotions?
Final PDF to printer
52 C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 52 10/17/17 11:34 AM
EXERCISE: PERFORMANCE OF A SERVER
The purpose of this exercise is to explore what job performance means for a server in a restau-
rant. This exercise uses groups of participants, so your instructor will either assign you to a group
or ask you to create your own group. The exercise has the following steps:
2.1 Conduct a job analysis for a restaurant server. Begin by drawing a circle like the one below.
Use that circle to summarize the major job dimensions of a restaurant server. For example,
one job dimension might be “Taking Orders.” Divide the circle up with four additional job
dimensions. Now get more specific by listing two behaviors per job dimension. For example,
two behaviors within the “Taking Orders” dimension might be “Describing the Menu” and
“Making Recommendations.” At the end of step 1, you should have a list of eight specific
behaviors that summarize the tasks involved in being a restaurant server. Write your
group’s behaviors down on the board or on a transparency, leaving some space for some
additional behaviors down the line.
2.2 Take a look at the resulting list. Did you come up with any behaviors that would be described
as “citizenship behaviors”? If you didn’t include any in your list, does that mean that citizen-
ship behavior isn’t important in a restaurant setting? If your group includes someone who
has worked as a server, ask him or her to describe the importance of citizenship behavior.
Come up with two especially important citizenship behaviors and add those to your list.
2.3 Take another look at your list. Did you come up with any behaviors that would be described
as “counterproductive behaviors”? If you didn’t include any, does that mean that counterpro-
ductive behavior isn’t an important concern in a restaurant setting? If your group includes
someone who has worked as a server, ask him or her to describe the potential costs of coun-
terproductive behavior. Come up with two costly counterproductive behaviors and add (the
avoidance of) them to your list.
2.4 Class discussion (whether in groups or as a class) should center on how a restaurant owner
or manager might use the resulting list to evaluate the performance of restaurant servers.
How could this list be used to assess server performance? Would such an approach be valu-
able? Why or why not?
Taking Orders
2.1 Duffy, M.K.; K.L. Scott;
J.D. Shaw; B.J. Tepper;
and K. Aquino. “A
Social Context Model of
Envy and Social Under-
mining.” Academy of
Management Journal 55
(2012), pp. 643–66; and
Greenbaum, R.L.; M.B.
Mawritz; and G. Eissa.
“Bottom-Line Mentality
as an Antecedent of
Social Undermining and
the Moderating Roles of
Core Self-Evalutions and
Conscientiousness.” Jour-
nal of Applied Psychology
97 (2012), pp. 343–59.
2.2 Corkery, M. “Wells
Fargo Struggling in
Aftermath of Fraud
E N D N OT E S
Final PDF to printer
53C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 53 10/17/17 11:34 AM
Scandal.” The New
York Times, January 13,
2017. https://www
.nytimes.com/2017/
01/13/business/
dealbook/wells-fargo-
earnings-report
.html?_r=0
2.3 Shawel, T. “Home-
grown Career Develop-
ment.” HR Magazine,
April 2011, pp. 36–38.
2.4 Campbell, J.P. “Model-
ing the Performance
Prediction Problem in
Industrial and Organi-
zational Psychology.”
In Handbook of Indus-
trial and Organizational
Psychology, Vol. 1, 2nd
ed., ed. M.D. Dunnette
and L.M. Hough. Palo
Alto, CA: Consulting
Psychologists Press,
1990, pp. 687–732;
and Motowidlo, S.J.;
W.C. Borman; and M.J.
Schmit. “A Theory of
Individual Differences
in Task and Contextual
Performance.” Human
Performance 10 (1997),
pp. 71–83.
2.5 Borman, W.C., and S.J.
Motowidlo. “Expanding
the Criterion Domain
to Include Elements
of Contextual Perfor-
mance.” In Personnel
Selection in Organiza-
tions, ed. N. Schmitt
and W.C. Borman. San
Francisco: Jossey-Bass,
1993, pp. 71–98.
2.6 Ibid.
2.7 Occupational Informa-
tion Network (O*NET)
OnLine (n.d.), http://
online.onetcenter.org/.
2.8 Weiss, H.M., and D.R.
Ilgen. “Routinized
Behavior in Organiza-
tions.” Journal of
Behavioral Economics
24 (1985), pp. 57–67.
2.9 LePine, J.A.; J.A.
Colquitt; and A.
Erez. “Adaptability
to Changing Task
Contexts: Effects of
General Cognitive
Ability, Conscientious-
ness, and Openness to
Experience.” Personnel
Psychology 53 (2000),
pp. 563–93.
2.10 CBC News. “Plane Fire
at Pearson Airport:
Flight 358.” Indepth
website, August 8,
2005, http://www.cbc
.ca/news/background/
plane_fire/.
2.11 Ilgen, D.R., and E.D.
Pulakos. “Employee
Performance in Today’s
Organizations.” In
The Changing Nature
of Work Performance:
Implications for
Staffing, Motivation,
and Development, ed.
D.R. Ilgen and E.D.
Pulakos. San Francisco:
Jossey-Bass, 1999,
pp. 1–20.
2.12 Haneberg, L. “Training
for Agility: Building the
Skills Employees Need
to Zig and Zag.” Train-
ing and Development,
September 2011, pp.
51–56.
2.13 Associated Press.
“Unemployed Find
Old Jobs Now Require
More Skills.” Gaines-
ville Sun, October 11,
2010, p. 7A.
2.14 Pulakos, E.D.; S. Arad;
M.A. Donovan; and
K.E. Plamondon.
“Adaptability in the
Workplace: Develop-
ment of a Taxonomy of
Adaptive Performance.”
Journal of Applied
Psychology 85 (2000),
pp. 612–24.
2.15 Amabile, T.M. “How to
Kill Creativity.”
Harvard Business
Review 76 (1998),
pp. 76–88.
2.16 “Bikini Trivia: His-
tory of the Bikini”
(n.d.), http://www
.everythingbikini.com/
bikini-history.html.
2.17 Florida, R. “America’s
Looming Creativity
Crisis.” Harvard Busi-
ness Review 82 (2004),
pp. 122–36.
2.18 Grant, A.M., and J.W.
Berry. “The Necessity
of Others Is the Mother
of Invention: Intrinsic
and Prosocial Motiva-
tions, Perspective
Taking, and Creativity.”
Academy of Manage-
ment Journal 54
(2011), pp. 73–96; and
George, J.M. “Creativ-
ity in Organizations.”
Academy of Manage-
ment Annals, Vol. 1,
ed. J.P. Walsh and
A.P. Brief. New York:
Erlbaum, 2007, pp.
439–77.
2.19 Baer, M. “Putting
Creativity to Work:
The Implementation of
Creative Ideas in Orga-
nizations.” Academy of
Management Journal 55
(2012), pp. 1102–19.
2.20 Liker, J.K., and D. P.
Meier. Toyota Talent:
Developing Your People
the Toyota Way. New
York: McGraw-Hill,
2007.
2.21 Ibid.
2.22 O’Reilly III, C.A.,
and J. Pfeffer. Hidden
Final PDF to printer
54 C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 54 10/17/17 11:34 AM
Value: How Great
Companies Achieve
Extraordinary Results
with Ordinary People.
Boston: Harvard Busi-
ness School Press,
2000.
2.23 Freidberg, K., and J.
Freidberg. Nuts! South-
west Airlines’ Crazy
Recipe for Business
and Personal Success.
Austin, TX: Bard Press,
1996.
2.24 Kaplan, M.D.G. “What
are you, a comedian?”
USA Weekend.com, July
13, 2003.
2.25 Krell, E. “All for Incen-
tives, Incentives for
All.” HR Magazine,
January 2011, pp.
35–38.
2.26 Ibid.
2.27 Aguinis, H.; E. O’Boyle,
Jr.; E. Gonzalez-Mule;
and H. Joo. “Cumula-
tive Advantage: Con-
ductors and Insulators
of Heavy-Tailed Pro-
ductivity Distributions
and Productivity Stars.”
Personnel Psychology
69 (2016), pp. 3–66;
and Call, M.L.; A.J.
Nyberg; and S.M.B.
Thatcher. “Stargazing:
An Integrative Concep-
tual Review, Theoretical
Reconciliation, and
Extension for Star
Employee Research.”
Journal of Applied
Psychology 100 (2015),
pp. 623–40.
2.28 Borman and Motow-
idlo, “Expanding the
Criterion Domain.”
2.29 Organ, D.W. Organi-
zational Citizenship
Behavior: The Good
Soldier Syndrome. Lex-
ington, MA: Lexington
Books, 1988.
2.30 Coleman, V.I., and W.C.
Borman. “Investigating
the Underlying Struc-
ture of the Citizenship
Performance Domain.”
Human Resource
Management Review 10
(2000), pp. 25–44.
2.31 Ibid.
2.32 Lanaj, K.; R.E. John-
son; and M. Wang.
“When Lending a Hand
Depletes the Will:
The Daily Costs and
Benefits of Helping.”
Journal of Applied Psy-
chology 100 (2016),
pp. 1097–110.
2.33 MacMillan, P. The
Performance Factor:
Unlocking the Secrets of
Teamwork. Nashville,
TN: Broadman & Hol-
man, 2001.
2.34 LePine, J.A.; R.F.
Piccolo; C.L. Jackson;
J.E. Mathieu; and J.R.
Saul. “A Meta-Analysis
of Teamwork Process:
Towards a Better
Understanding of the
Dimensional Structure
and Relationships with
Team Effectiveness
Criteria.” Personnel
Psychology 61 (2008),
pp. 273–307.
2.35 Coleman and Borman,
“Investigating the
Underlying Structure.”
2.36 Liang, J.; C.I. Farh;
and J.L. Farh. “Psycho-
logical Antecedents
of Promotive and Pro-
hibitive Voice: A Two-
Wave Examination.”
Academy of Manage-
ment Journal 55 (2012),
pp. 71–92; Morrison,
E.W. “Employee Voice
Behavior: Integration
and Directions for
Future Research.”
Academy of Manage-
ment Annals (5) 2011,
pp. 373–412; Morrison,
E.W. “Employee Voice
and Silence.” Annual
Review of Organizational
Psychology and Orga-
nizational Behavior (1)
2014, pp. 173–97; and
Van Dyne, L., and J.A.
LePine. “Helping and
Voice Extra-Role Behav-
iors: Evidence of Con-
struct and Predictive
Validity.” Academy of
Management Journal 41
(1998), pp. 108–19.
2.37 Bashshur, M.R., and O.
Burak. “When Voice
Matters: A Multilevel
Review of the Impact
of Voice in Organiza-
tions.” Journal of Man-
agement (41) 2015, pp.
1530–54; and Chamber-
lin, M.; D.W. Newton;
and J.A. LePine. “A
Meta-Analysis of Voice
and Its Promotive and
Prohibitive Forms:
Identification of Key
Associations, Distinc-
tions, and Future
Research Directions.”
Personnel Psychology 70
(2017), pp. 11–71.
2.38 Burris, E.R. “The Risks
and Rewards of Speak-
ing Up: Managerial
Responses to Employee
Voice.” Academy of
Management Journal
55 (2012), pp. 851–75;
Liu, W.; S. Tangirala;
W. Lam; Z. Chen; R.T.
Jia; and X. Huang.
Final PDF to printer
55C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 55 10/17/17 11:34 AM
“How and When
Peers’ Positive Mood
Influence Employees’
Voice.” Journal of
Applied Psychology 100
(2015), pp. 976–89;
and Van Dyne, L., and
J.A. LePine. “Helping
and Voice Extra-Role
Behavior: Evidence of
Construct and Predic-
tive Validity.” Academy
of Management Journal
41 (1998), pp. 108–19.
2.39 Motowidlo, S.J.
“Some Basic Issues
Related to Contex-
tual Performance
and Organizational
Citizenship Behavior
in Human Resource
Management.” Human
Resource Management
Review 10 (2000),
pp. 115–26.
2.40 Podsakoff, N.P;
S.W. Whiting; P.M.
Podsakoff; and B.D.
Blume. “Individual- and
Organizational-Level
Consequences of
Organizational Citizen-
ship Behaviors: A
Meta-Analysis.” Journal
of Applied Psychology
94 (2009), pp. 122–41;
and Podsakoff, P.M.;
S.B. MacKenzie;
J.B. Paine; and D.G.
Bachrach. “Organi-
zational Citizenship
Behaviors: A Critical
Review of the Theoreti-
cal and Empirical Lit-
erature and Suggestions
for Future Research.”
Journal of Management
26 (2000), pp. 513–63.
2.41 Podsakoff, P.M.; M.
Ahearne; and S.B.
MacKenzie. “Organi-
zational Citizenship
Behavior and the
Quantity and Quality
of Work Group Per-
formance.” Journal of
Applied Psychology 82
(1997), pp. 262–70.
2.42 Walz, S.M., and B.P.
Neihoff. “Organiza-
tional Citizenship
Behaviors and Their
Effect on Organiza-
tional Effectiveness
in Limited-Menu Res-
taurants.” In Academy
of Management Best
Papers Proceedings,
ed. J.B. Keys and L.N.
Dosier. Statesboro,
GA: College of Busi-
ness Administration
at Georgia Southern
University, 1996,
pp. 307–11.
2.43 Dalal, R.S.; H. Lam;
H.M. Weiss; E.R.
Welch; and C.L. Hulin.
“A Within-Person
Approach to Work
Behavior and Perfor-
mance: Concurrent and
Lagged Citizenship-
Counterproductivity
Associations, and
Dynamic Relationships
with Affect and Overall
Job Performance.”
Academy of Manage-
ment Journal 52
(2009), pp. 1051–66;
and Koopman, J.; K.
Lanaj; and B.A. Scott.
“Integrating the Bright
and Dark Sides of
OCB: A Daily Investi-
gation of the Benefits
and Costs of Helping
Others.” Academy of
Management Journal 59
(2016), pp. 414–35.
2.44 Bolino, M.C.; H.H.
Hsiung; Harvey, J.;
and J.A. LePine. “‘Well,
I’m Tired of Tryin’!’
Organizational Citizen-
ship Behavior and
Citizenship Fatigue.”
Journal of Applied
Psychology 100 (2015),
pp. 56–74.
2.45 Allen, T.D., and M.C.
Rush. “The Effects
of Organizational
Citizenship Behavior
on Performance Judg-
ments: A Field Study
and a Laboratory
Experiment.” Journal
of Applied Psychology
83 (1998), pp. 247–60;
Avila, R.A.; E.F. Fern;
and O.K. Mann.
“Unraveling Criteria for
Assessing the Perfor-
mance of Sales People:
A Causal Analysis.”
Journal of Personal
Selling and Sales Man-
agement 8 (1988), pp.
45–54; Lowery, C.M.,
and T.J. Krilowicz.
“Relationships among
Nontask Behaviors,
Rated Performance,
and Objective Perfor-
mance Measures.”
Psychological Reports
74 (1994), pp. 571–78;
MacKenzie, S.B.; P.M.
Podsakoff; and R. Fet-
ter. “Organizational Cit-
izenship Behavior and
Objective Productivity
as Determinants of
Managerial Evaluations
of Salespersons’ Perfor-
mance.” Organizational
Behavior and Human
Decision Processes 50
(1991), pp. 123–50;
MacKenzie, S.B.; P.M.
Podsakoff; and R.
Fetter. “The Impact
of Organizational
Citizenship Behavior
on Evaluation of Sales
Final PDF to printer
56 C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 56 10/17/17 11:34 AM
Performance.” Journal
of Marketing 57 (1993),
pp. 70–80; MacKenzie,
S.B.; P.M. Podsakoff;
and J.B. Paine. “Effects
of Organizational
Citizenship Behaviors
and Productivity on
Evaluation of Perfor-
mance at Different
Hierarchical Levels in
Sales Organizations.”
Journal of the Academy
of Marketing Science 27
(1999), pp. 396–410;
Motowidlo, S.J., and
J.R. Van Scotter.
“Evidence That Task
Performance Should
Be Distinguished
from Contextual
Performance.” Journal
of Applied Psychology
79 (1994), pp. 475–80;
Podsakoff, P.M., and
S.B. MacKenzie. “Orga-
nizational Citizenship
Behaviors and Sales
Unit Effectiveness.”
Journal of Marketing
Research 3 (February
1994), pp. 351–63; and
Van Scotter, J.R., and
S.J. Motowidlo. “Inter-
personal Facilitation
and Job Dedication as
Separate Facets of Con-
textual Performance.”
Journal of Applied
Psychology 81 (1996),
pp. 525–31.
2.46 Rotundo, M., and
P.R. Sackett. “The
Relative Importance
of Task, Citizenship,
and Counterproductive
Performance to Global
Ratings of Job Perfor-
mance: A Policy Captur-
ing Approach.” Journal
of Applied Psychology 87
(2002), pp. 66–80.
2.47 Allen and Rush, “The
Effects of Organiza-
tional Citizenship
Behavior on Perfor-
mance Judgments”;
Kiker, D.S., and S.J.
Motowidlo. “Main and
Interaction Effects of
Task and Contextual
Performance on
Supervisory Reward
Decisions.” Journal of
Applied Psychology 84
(1999), pp. 602–9; and
Park, O.S., and H.P
Sims Jr. “Beyond Cog-
nition in Leadership:
Prosocial Behavior and
Affect in Managerial
Judgment.” Working
Paper, Seoul National
University and Pennsyl-
vania State University,
1989.
2.48 Marcus, B.; O.A.
Taylor; S. E. Hastings;
A. Strum; and O.
Weigelt. “The Structure
of Counterproductive
Work Behavior: A
Review, a Structural
Meta-Analysis, and
a Primary Study.”
Journal of Manage-
ment (42), pp. 203–33;
and Robinson, S.L.,
and R.J. Bennett. “A
Typology of Deviant
Workplace Behaviors:
A Multidimensional
Scaling Study.” Acad-
emy of Management
Journal 38 (1995),
pp. 555–72.
2.49 Cellitti, D.R. “MCA
DiscoVision: The
Record That Plays Pic-
tures,” June 25, 2002,
http://www.oz.net/
blam/DiscoVision/
RecordPlays
Pictures.htm.
2.50 Hollweg, L. “Inside
the Four Walls of the
Restaurant: The Reality
and Risk of Counter-
Productive Behaviors,”
2003, http://www
.batrushollweg.com/
files/Website.Inside_
the_Four?_Walls_
of_the_Restaurant1
.Reprint_9 .
2.51 Wang, M.; H. Liao; Y.
Zhan; and J. Shi. “Daily
Customer Mistreatment
and Employee Sabotage
Against Customers:
Examining Emotion
and Resource Perspec-
tives.” Academy of
Management Journal 54
(2011), p. 31.
2.52 Harper, D. “Spotlight
Abuse—Save Profits.”
Industrial Distribution
79 (1990), pp. 47–51.
2.53 Hollinger, R.C., and
L. Langton. 2004
National Retail Security
Survey. Gainesville:
University of Florida,
Security Research
Project, Department of
Criminology, Law and
Society, 2005.
2.54 Andersson, L.M., and
C.M. Pearson. “Tit
for Tat? The Spiraling
Effect of Incivility in
the Workplace.” Acad-
emy of Management
Review 24 (1999), pp.
452–71.
2.55 Ibid.
2.56 Armour, S. “Managers
Not Prepared for
Workplace Violence.”
USA Today, July 19,
2004, http://www
.usatoday.com/money/
workplace/2004-07-
Final PDF to printer
57C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 57 10/17/17 11:34 AM
15-workplace-
violence2_x.htm.
2.57 Daniel, T.A. “Tough
Boss or Workplace
Bully?” HR Magazine,
June 2009, pp. 83–86.
2.58 Baillien, E.; N. De
Cuyper; and H. De
Witte. “Job Autonomy
and Workload as Ante-
cedents of Workplace
Bullying: A Two-Wave
Test of Karasek’s Job
Demand Control
Model for Targets and
Perpetrators.” Journal of
Occupational and Orga-
nizational Psychology 84
(2010), pp. 191–208.
2.59 Cowie, H.; P. Naylor; I.
Rivers; P.K. Smith; and
B. Pereira. “Measuring
Workplace Bullying.”
Aggression and Violent
Behavior 7 (2002), pp.
35–51; Baillien et al.
“Job Autonomy and
Workload as Anteced-
ents of Workplace Bul-
lying”; and Einarsen,
S.S.; B. Matthisen; and
L.J. Hauge. “Bullying
and Harassment at
Work. In The Oxford
Handbook of Person-
nel Psychology, ed. S.
Cartwright and C.L.
Cooper. London: Sage,
2009, pp. 464–95.
2.60 Ibid.
2.61 PBS. “Isolated
Incidents?” Online
Newshour, April 26,
1996, http://www
.pbs.org/newshour/
bb/-business/april96/
mitsubishi_4-26.html.
2.62 Sackett, P.R. “The
Structure of Coun-
terproductive Work
Behaviors: Dimension-
ality and Performance
with Facets of Job
Performance.” Interna-
tional Journal of Selec-
tion and Assessment 10
(2002), pp. 5–11.
2.63 Foulk, T.; A. Woolum;
and A. Erez. “Catch-
ing Rudeness Is Like
Catching a Cold: The
Contagion Effects of
Low-Intensity Negative
Behaviors.” Journal
of Applied Psychology
100 (2016), pp. 50–67;
Lee, K.Y.; E. Kim;
D.P. Bhave; and M.K.
Duffy. “Why Victims of
Undermining at Work
Become Perpetrators of
Undermining: An Inte-
grated Model.” Journal
of Applied Psychology
100 (2016), pp. 915–24;
Rosen, C.C.; J. Koop-
man; A.S. Gabriel; and
R.E. Johnson. “Why
Strikes Back? A Daily
Investigation of When
and Why Incivility
Begets Incivility.”
Journal of Applied Psy-
chology 101 (2016), pp.
1620–34.
2.64 Ferris, D.L.; M. Yan;
V.K.G. Lim; Y. Chen;
and S. Fatimah. “An
Approach-Avoidance
Framework of Work-
place Aggression.”
Academy of Manage-
ment Journal 59 (2016),
pp. 1777–800; Lian,
H.; D.L. Ferris; R.
Morrison; and D.J.
Brown. “Blame it on
the Supervisor or the
Subordinate? Recipro-
cal Relations Between
Abusive Supervision
and Organizational
Deviance.” Journal of
Applied Psychology 99
(2014), pp. 651–64;
and Liang, L.H.; H.
Lian; D.J. Brown; D.L.
Ferris; S. Hanig; and
L.M. Keeping. “Why
Are Abusive Supervi-
sors Abusive? A Dual-
System Self-Control
Model.” Academy of
Management Journal 59
(2016), pp. 13–85.
2.65 Frazier, M.L., and
W.M. Bowler. “Voice
Climate, Supervisor
Undermining, and
Work Outcomes: A
Group-Level Exami-
nation.” Journal of
Management (41) 2015,
pp. 841–63.
2.66 Sackett, P.R., and
C.J. DeVore. “Counter-
productive Behaviors at
Work.” In Handbook
of Industrial, Work,
and Organizational
Psychology, Vol. 1, ed.
N. Anderson; D.S.
Ones; H.K. Sinangil;
and C. Viswesvaran.
Thousand Oaks, CA:
Sage, 2001, pp. 145–51.
2.67 Drucker, P.F. “The Age
of Social Transforma-
tion.” The Atlantic
Monthly 274 (1994),
pp. 53–80.
2.68 U.S. Department of
Labor, Bureau of Labor
Statistics. “Tomorrow’s
Jobs” (n.d.), http://
stats.bls.gov/oco/
oco2003.htm.
2.69 Allen, D. Getting Things
Done. New York:
Penguin Books, 2001.
2.70 U.S. Census Bureau.
“Welcome to the
Final PDF to printer
58 C H A P T E R 2 Job Performance
coL27660_ch02_028-059.indd 58 10/17/17 11:34 AM
Service Annual Sur-
vey,” March 30, 2009,
http://www.census
.gov/econ/www/
servmenu.html.
2.71 Hecker, D. “Occupa-
tional Employment
Projections to 2012.”
Monthly Labor Review
127 (2004), pp.
80–105, http://www
.proquest.com.
2.72 Green, H. “How
Amazon Aims to Keep
You Clicking.” Business-
Week, March 2, 2009,
pp. 34–40.
2.73 Ibid.
2.74 McGregor, J. “Behind
the List.” BusinessWeek,
March 2, 2009, p. 32.
2.75 DeNisi, A.S., and
K.R. Murphy.
“Performance Appraisal
and Performance
Management: 100 Years
of Progress?” Journal
of Applied Psychology
(2017), pp. 1–13.
2.76 Drucker, P.F. The
Practice of Management.
New York: Harper and
Brothers, 1954.
2.77 Shaw, D.G.; C.E.
Schneier; and R.W.
Beatty. “Managing
Performance with a
Behaviourally Based
Appraisal System.” In
Applying Psychology
in Business: The
Handbook for Managers
and Human Resource
Professionals, ed.
J.W Jones; B.D.
Steffy; and D.W.
Bray. Lexington, MA:
Lexington Books, 2001,
pp. 314–25.
2.78 Pulakos, E.D. “Behav-
ioral Performance
Measures.” In Applying
Psychology in Business:
The Handbook for
Managers and Human
Resource Professionals,
ed. J.W. Jones; B.D.
Steffy; and D.W. Bray.
Lexington, MA:
Lexington Books, 2001,
pp. 307–13.
2.79 “Fortune Selects Henry
Ford Businessman of
the Century,” Novem-
ber 1, 1999, http://
www.timewarner.com/
corp/print/0,20858,
667526,00.html.
2.80 Welch, J.F. Jr. Jack,
“Straight from the
Gut,” Warner Books,
New York, 2001, p. 158.
2.81 Ibid.
2.82 Johnson, G. “Forced
Ranking: The Good,
the Bad, and the
Alternative.” Training
Magazine, May 2004,
pp. 24–34.
2.83 M. Nisen. “How Mil-
lennials Forced GE
to Scrap Performance
Reviews.” The Atlantic,
August 18, 2015,
https://www.the
atlantic.com/politics/
archive/2015/08/
how-millennials-
forced-ge-to-scrap-
performance-
reviews/432585/.
2.84 McGregor, J. “Job
Review in 140 Keystrokes:
Social Networking-Style
Systems Lighten up the
Dreaded Performance
Evaluation.” Business-
Week, March 29, 2009,
p. 58.
2.85 Ibid.
2.86 Ibid.
Final PDF to printer
coL27660_ch02_028-059.indd 59 10/17/17 11:34 AM
Final PDF to printer
coL27660_ch03_060-090.indd 60 10/11/17 08:40 AM
3
LEARNING GOALS
3.1 What is organizational commitment? What is withdrawal behavior? How are the two connected?
3.2 What are the three types of organizational commitment, and how do they differ?
3.3 What are the four primary responses to negative events at work?
3.4 What are some examples of psychological withdrawal? Of physical withdrawal? How do the different
forms of withdrawal relate to each other?
3.5 What workplace trends are affecting organizational commitment in today’s organizations?
3.6 How can organizations foster a sense of commitment among employees?
After reading this chapter, you should be able to answer the following questions:
Organizational
Commitment
INDIVIDUAL
OUTCOMES
INDIVIDUAL
MECHANISMS
INDIVIDUAL
CHARACTERISTICS
GROUP
MECHANISMS
ORGANIZATIONAL
MECHANISMS
Organizational
Commitment
Job
Performance
Organizational
Culture
Organizational
Structure
Leadership:
Styles &
Behaviors
Leadership:
Power &
Negotiation
Teams:
Processes &
Communication
Teams:
Characteristics &
Diversity
Ability
Personality &
Cultural Values
Job
Satisfaction
Stress
Motivation
Trust, Justice,
& Ethics
Learning &
Decision Making
Final PDF to printer
coL27660_ch03_060-090.indd 61 10/11/17 08:40 AM
W
hat’s your sense of the typical career path at a Big
Four accounting firm? Put in five or so good years,
then step away from the grind of travel and hours
for something more slow-paced? PwC, the New York–based
firm with 41,531 U.S. employees (and 157,955 employees
worldwide) is fighting to make that career path a bit less typ-
ical. The firm, which was recently named one of Fortune’s
100 Best Companies to Work For, is taking a number of
steps to build a sense of loyalty among the rank and file.
Some of those steps are focused on making PwC a fun
place to work. For example, interns who receive offers of
full-time employment get to compete in games and chal-
lenges at Disney World. PwC also uses sporting events and
leagues to promote camaraderie. Nearly 400 employees—
including interns and partners—participated in its softball
tournament in Denver. Other steps are focused on making
PwC a convenient place to work. For example, the com-
pany offers a number of desirable perks, including tele-
commuting, job sharing, compressed work weeks, paid
parental leave, and paid time off for volunteering. Indeed,
PwC recently announced that it would begin contributing
$1,200 a year to employees’ student loans. The founder of
a startup helping PwC administer this new perk views it as
a “tremendous differentiator” when PwC recruits on college
campuses.
Helping hires pay off their student loans should be par-
ticularly valued by Millennials, who typically carry a signifi-
cant amount of debt from college. PwC hopes that’s the
case, as it’s struggled to build loyalty on the part of Millen-
nials in recent years. Whereas new hires typically stayed for
multiple years to take advantage of training and develop-
ment opportunities, more and more Millennials have been
quitting after a year or two. “Our first reaction was to ques-
tion ourselves,” says Anne Donovan, a manager in PwC’s
human capital group. “We thought we must be hiring the
wrong people.” That sense changed when PwC commis-
sioned a large-scale study of Millennial attitudes, to find out
what drove loyalty for that age group. What did that study
show? Summarizes Donovan, “Millennials are driven by how
well their team works together, how supported and appreci-
ated they feel, and how much possibility they have. They’re
all about how it feels.”
PWC
©Chris Batson/Alamy
Final PDF to printer
62 C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 62 10/11/17 08:40 AM
O R G A N I Z AT I O N A L C O M M I T M E N T
Organizational commitment sits side-by-side with job performance in our integrative model of
organizational behavior, reflecting one of the starting points for our journey through the concepts
covered in this course. Why begin with a discussion of organizational commitment? Because it’s
not enough to have talented employees who perform their jobs well. You also need to be able to
hang on to those employees for long periods of time so that the organization can benefit from
their efforts. Put yourself in the shoes of a business owner. Let’s say you spent a great deal of time
recruiting a graduate from the local university, selling her on your business, and making sure that
she was as qualified as you initially believed her to be. Now assume that, once hired, you took a
personal interest in that employee, showing her the ropes and acting as mentor and instructor.
Then, just as the company was set to improve as a result of that employee’s presence, she leaves to
go to work for a competitor. As an employer, can you think of many things more depressing than
that scenario?
Unfortunately, that scenario is not far-fetched. The U.S. Bureau of Labor Statistics estimates
that the average American will have 10.8 jobs between the ages of 18 and 42.1 That projection is
based in part on an overall turnover (or “attrition”) rate of around 16 percent across all industries.
Such statistics are nerve-wracking to employers because turnover can be quite expensive. Esti-
mates suggest that turnover costs between 90 percent and 200 percent of an employee’s annual
salary.2 Why so expensive? Those estimates include various costs, including the administrative
costs involved in the separation, recruitment expenses, screening costs, and training and orienta-
tion expenses for the new hire. They also include “hidden costs” due to decreased morale, lost
organizational knowledge, and lost productivity.
Organizational commitment is defined as the desire on the part of an employee to remain a mem-
ber of the organization.3 Organizational commitment influences whether an employee stays a mem-
ber of the organization (is retained) or leaves to pursue another job (turns over). Our attention in
this chapter is focused primarily on reducing voluntary turnover by keeping the employees whom
the organization wants to keep, though we will touch on involuntary turnover in a discussion of lay-
offs and downsizing. Employees who are not committed to their organizations engage in withdrawal
behavior, defined as a set of actions that employees perform to avoid the work situation—behaviors
that may eventually culminate in quitting the organization.4 The relationship between commitment
and withdrawal is illustrated in Figure 3-1. Some employees may exhibit much more commitment
than withdrawal, finding themselves on the green end of the continuum. Other employees exhibit
much more withdrawal than commitment, finding themselves on the red end of the continuum.
The sections that follow review both commitment and withdrawal in more detail.
3.1
What is organizational
commitment? What is with-
drawal behavior? How are
the two connected?
FIGURE 3-1 Organizational Commitment and Employee Withdrawal
Withdrawal Behavior
Low High
Organizational Commitment
High Low
Final PDF to printer
63C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 63 10/11/17 08:40 AM
W H AT D O E S I T M E A N TO B E “ C O M M I T T E D ” ?
One key to understanding organizational commitment is to understand where it comes from. In
other words, what creates a desire to remain a member of an organization? To explore this ques-
tion, consider the following scenario: You’ve been working full-time for your employer for around
five years. The company gave you your start in the business, and you’ve enjoyed your time there.
Your salary is competitive enough that you were able to purchase a home in a good school system,
which is important because you have one young child and another on the way. Now assume that
a competing firm contacted you while you were attending a conference and offered you a similar
position in its company. What kinds of things might you think about? If you created a list to orga-
nize your thoughts, what might that list look like?
T Y P E S O F C O M M I T M E N T
One potential list is shown in Table 3-1. The left-hand column reflects some emotional reasons for
staying with the current organization, including feelings about friendships, the atmosphere or culture
of the company, and a sense of enjoyment when completing job duties. These sorts of emotional rea-
sons create affective commitment, defined as a desire to remain a member of an organization due to
an emotional attachment to, and involvement with, that organization.5 Put simply, you stay because
you want to. The middle column reflects some cost-based reasons for staying, including issues of sal-
ary, benefits, and promotions, as well as concerns about uprooting a family. These sorts of reasons
create continuance commitment, defined as a desire to remain a member of an organization because
of an awareness of the costs associated with leaving it.6 In other words, you stay because you need to.
The right-hand column reflects some obligation-based reasons for staying with the current organiza-
tion, including a sense that a debt is owed to a boss, a colleague, or the larger company. These sorts
of reasons create normative commitment, defined as a desire to remain a member of an organization
due to a feeling of obligation.7 In this case, you stay because you ought to.
3.2
What are the three types
of organizational commit-
ment, and how do they
differ?
TABLE 3-1 The Three Types of Organizational Commitment
What Makes Someone Stay with His/Her Current Organization?
AFFECTIVE COMMITMENT
(EMOTION-BASED)
CONTINUANCE COMMITMENT
(COST-BASED)
NORMATIVE COMMITMENT
(OBLIGATION-BASED)
Some of my best friends
work in my office . . . I’d
miss them if I left.
I’m due for a promotion
soon . . . will I advance as
quickly at the new company?
My boss has invested so much
time in me, mentoring me,
training me, showing me the
ropes.
I really like the atmosphere
at my current job . . . it’s
fun and relaxed.
My salary and benefits get us a
nice house in our town . . . the
cost of living is higher in this
new area.
My organization gave me
my start . . . they hired me
when others thought I wasn’t
qualified.
My current job duties are
very rewarding . . . I enjoy
coming to work each
morning.
The school system is good
here, my spouse has a good
job . . . we’ve really put down
roots where we are.
My employer has helped me
out of a jam on a number of
occasions . . . how could I
leave now?
Staying because you
want to.
Staying because you
need to.
Staying because you
ought to.
Final PDF to printer
64 C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 64 10/11/17 08:40 AM
FIGURE 3-2 Drivers of Overall Organizational Commitment
Normative
Commitment
A�ective
Commitment
Continuance
Commitment
OVERALL
ORGANIZATIONAL
COMMITMENT
Felt in Reference
to One’s:
Company
Top Management
Department
Manager
Work Team
Specific Coworkers
As shown in Figure 3-2, the three
types of organizational commitment
combine to create an overall sense
of psychological attachment to the
company. Of course, different people
may weigh the three types differently.
Some employees may be very ratio-
nal and cautious by nature, focusing
primarily on continuance commit-
ment when evaluating their overall
desire to stay. Other employees may
be more emotional and intuitive by
nature, going more on “feel” than a
calculated assessment of costs and
benefits. The importance of the three
commitment types also may vary over
the course of a career. For example, you might prioritize affective reasons early in your work
life before shifting your attention to continuance reasons as you start a family or become more
established in a community. Regardless of how the three types are prioritized, however, they offer
an important insight into why someone might be committed and what an organization can do to
make employees feel more committed.
Figure 3-2 also shows that organizational commitment depends on more than just “the orga-
nization.” That is, people aren’t always committed to companies; they’re also committed to the
Committed employees
often have strong positive
feelings about one particu-
lar aspect of their job, such
as their colleagues, their
manager, or the particular
work they do.
©Liquidlibrary/Getty Images
Final PDF to printer
65C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 65 10/11/17 08:40 AM
top management that leads the firm at a given time, the department in which they work, the man-
ager who directly supervises them, or the specific team or coworkers with whom they work most
closely.8 We use the term focus of commitment to refer to the various people, places, and things
that can inspire a desire to remain a member of an organization. For example, you might choose
to stay with your current employer because you’re emotionally attached to your work team, worry
about the costs associated with losing your company’s salary and benefits package, and feel a
sense of obligation to your current manager. If so, your desire to remain cuts across multiple types
of commitment (affective, continuance, and normative) and multiple foci (or focuses) of commit-
ment (work team, company, manager). Now that you’re familiar with the drivers of commitment
in a general sense, let’s go into more depth about each type.
AFFECTIVE COMMITMENT One way to understand the differences among the three types of
commitment is to ask yourself what you would feel if you left the organization. Consider the rea-
sons listed in the left-hand column of Table 3-1. What would you feel if, even after taking all those
reasons into account, you decided to leave your organization to join another one? Answer: You’d
feel a sense of sadness. Employees who feel a sense of affective commitment identify with the orga-
nization, accept that organization’s goals and values, and are more willing to exert extra effort on
behalf of the organization.9 By identifying with the organization, they come to view organizational
membership as important to their sense of self.10 Is affective commitment something that you feel
for your current employer or have felt for a past employer? Check the OB Assessments feature to
find out.
It’s safe to say that if managers could choose which type of commitment they’d like to instill
in their employees, they’d choose affective commitment. Moreover, when a manager looks at an
employee and says “She’s committed” or “He’s loyal,” that manager usually is referring to a behav-
ioral expression of affective commitment.11 For example, employees who are affectively committed
to their employer tend to engage in more interpersonal and organizational citizenship behaviors,
such as helping, sportsmanship, and boosterism. One meta-analysis of 22 studies with more than
6,000 participants revealed a moderately strong correlation between affective commitment and
citizenship behavior.12 (Recall that a meta-analysis averages together results from multiple studies
investigating the same relationship.) Such results suggest that emotionally committed employees
express that commitment by “going the extra mile” whenever they can.
Because affective commitment reflects an emotional bond to the organization, it’s only natu-
ral that the emotional bonds among coworkers influence it.13 We can, therefore, gain a better
understanding of affective commitment if we take a closer look at the bonds that tie employees
together. Assume you were given a sheet with the names of all the employees in your department
or members of your class. Then assume you were asked to rate the frequency with which you com-
municated with each of those people, as well as the emotional depth of those communications.
Those ratings could be used to create a “social network” diagram that summarizes the bonds
among employees. Figure 3-3 provides a sample of such a diagram. The lines connecting the
10 members of the work unit represent the communication bonds that tie each of them together,
with thicker lines representing more frequent communication with more emotional depth. The
diagram illustrates that some employees are “nodes,” with several direct connections to other
employees, whereas others remain at the fringe of the network.
The erosion model suggests that employees with fewer bonds will be most likely to quit the orga-
nization.14 If you look at Figure 3-3, who’s most at risk for turning over? That’s right—the employee
who has only one bond with someone else (and a relatively weak bond at that). From an affective
commitment perspective, that employee is likely to feel less emotional attachment to work col-
leagues, which makes it easier to decide to leave the organization. Social network diagrams can
also help us understand another explanation for turnover. The social influence model suggests
that employees who have direct linkages with “leavers” will themselves become more likely to
leave.15 In this way, reductions in affective commitment become contagious, spreading like a dis-
ease across the work unit. Think about the damage that would be caused if the central figure in the
network (the one who has linkages to five other people) became unhappy with the organization.
More and more companies are beginning to understand the value in helping employees con-
nect. SAS, the Cary, North Carolina–based software company, provides a number of perks that
Final PDF to printer
66 C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 66 10/11/17 08:40 AM
bring employees together.16 Those include a billiard hall; intramural tennis, baseball, and volley-
ball; pool and fitness facilities; and even a hair salon. Sabre Holdings, the Southlake, Texas–
based owner of Travelocity, created an internal social network system called Sabre Town.17 More
company-focused than Facebook, Sabre Town includes profiles of employee skills, experience,
and customer contacts, along with groups built around common personal interests. One such
group is Mom2Mom, which allows employees to connect and converse about day care centers,
pediatricians, and work–family balance issues.
CONTINUANCE COMMITMENT Now consider the reasons for staying listed in the middle
column of Table 3-1. What would you feel if, even after taking all those reasons into account, you
OB ASSESSMENTS
AFFECTIVE COMMITMENT
How emotionally attached are you to your employer? This assessment is designed to measure
affective commitment—the feeling that you want to stay with your current organization. Think
about your current job or the last job that you held (even if it was a part-time or summer job).
Answer each question using the response scale provided. Then subtract your answers to the bold-
faced questions from 6, with the difference being your new answers for those questions. For exam-
ple, if your original answer for question 3 was “4,” your new answer is “2” (6 − 4). Then sum your
answers for the six questions. (Instructors: Assessments on continuance commitment, norma-
tive commitment, and embeddedness can be found in the PowerPoints in the Connect Library’s
Instructor Resources and in the Connect assignments for this chapter).
SCORING AND INTERPRETATION
If your scores sum up to 20 or above, you feel a strong sense of affective commitment to your cur-
rent or past employer, which means that you feel an emotional attachment to the company or the
people within it. This means that you would leave voluntarily. If your scores sum up to less than
20, you have a weaker sense of affective commitment to your current or past employer. This result
is especially likely if you responded to the questions in reference to a part-time or summer job, as
there might not have been enough time to develop an emotional bond.
Source: Adapted from N.J. Allen and J.P. Meyer, “The Measurement and Antecedents of Affective, Continuance, and
Normative Commitment to the Organization,” Journal of Occupational Psychology 63 (1990), pp. 1–18.
1
STRONGLY
DISAGREE
2
DISAGREE
3
NEUTRAL
4
AGREE
5
STRONGLY
AGREE
1. I would be very happy to spend the rest of my career in this organization.
2. I really feel as if this organization’s problems are my own.
3. I do not feel like “part of the family” at my organization.
4. I do not feel “emotionally attached” to this organization.
5. This organization has a great deal of personal meaning for me.
6. I do not feel a strong sense of belonging to my organization.
Final PDF to printer
67C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 67 10/11/17 08:40 AM
decided to leave your organization to join another one? Answer: You’d feel a sense of anxiety. Con-
tinuance commitment exists when there’s a profit associated with staying and a cost associated
with leaving,18 with high continuance commitment making it difficult to change organizations
because of the steep penalties associated with the switch.19 One factor that increases continuance
commitment is the total amount of investment (in terms of time, effort, energy, etc.) employees
have made in mastering their work roles or fulfilling their organizational duties.20 Picture a sce-
nario in which you’ve worked extremely hard for a number of years to finally master the “ins and
outs” of working at a particular organization, and now you’re beginning to enjoy the fruits of that
labor in terms of financial rewards and better work assignments. That effort might be wasted if
you moved to another organization (and had to start over on the learning curve).
Another factor that increases continuance commitment is a lack of employment alternatives.21
If an employee has nowhere else to go, the need to stay will be higher. Employment alternatives
themselves depend on several factors, including economic conditions, the unemployment rate, and
the marketability of a person’s
skills and abilities.22 Of course,
no one likes to feel “stuck” in
a situation, so it may not be
surprising that the behavioral
benefits associated with affec-
tive commitment don’t really
occur with continuance com-
mitment. There’s no statistical
relationship between continu-
ance commitment and citizen-
ship behavior, for example, or
any other aspects of job per-
formance.23 Continuance com-
mitment, therefore, tends to
create more of a passive form
of loyalty.
FIGURE 3-3 A Social Network Diagram
SAS, the Cary, North
Carolina–based software
company, offers a number
of recreational perks to
help employees stay con-
nected to one another.©Charly Kurz/laif/New York Times/Redux Pictures
Final PDF to printer
68 C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 68 10/11/17 08:40 AM
It’s important to note that some of the reasons in the middle column of Table 3-1 center on
personal or family issues. Continuance commitment focuses on personal and family issues more
than the other two commitment types, because employees often need to stay for both work and
nonwork reasons. One concept that demonstrates the work and nonwork forces that can bind
us to our current employer is embeddedness, which summarizes employees’ links to their orga-
nization and community, their sense of fit with their organization and community, and what
they would have to sacrifice for a job change.24 As demonstrated in Table 3-2, embeddedness
strengthens continuance commitment by providing more reasons employees need to stay in
their current positions (and more sources of anxiety if they were to leave).25 Research suggests
that embeddedness helps employees weather negative events that occur,26 and that it matters
across cultures.27
Think about your current situation. If you’re a college student who is working part-time, you
likely don’t feel very embedded. Your links to your job are probably only short term, and you may
feel that the job is more routine than you’d like from a fit perspective. You probably also wouldn’t
feel you were sacrificing much if you left the job. From a community perspective, you may be
going to school in a different city or state than where you grew up, again resulting in few links, low
perceived fit, or a lack of felt sacrifice. However, if you’re a full-time employee who is relatively
established in your job and community, you may feel quite embedded in your current situation.28
Alcon Labs seems to understand the value of continuance commitment. The Fort Worth,
Texas–based leader in eye care products enjoys a voluntary turnover rate of less than 2 percent.29
One likely reason for that low rate is the benefits package Alcon offers its employees. For example,
Alcon offers a 401(k) retirement plan in which it matches 240 percent of what employees con-
tribute, up to a total of 5 percent of total compensation. So, for example, if an employee invests
$500 toward retirement in a given month, Alcon contributes $1,200. That policy more than dou-
bles the most generous rates of other companies, allowing employees to build a comfortable “nest
egg” for retirement more quickly. Clearly, employees would feel a bit anxious about giving up that
benefit if a competitor came calling.
NORMATIVE COMMITMENT Now consider the reasons for staying listed in the right-hand
column of Table 3-1. What would you feel if, even after taking all those reasons into account,
you decided to leave your organization to join another one? Answer: You’d feel a sense of guilt.
TABLE 3-2 Embeddedness and Continuance Commitment
“Embedded” People Feel:
FACET FOR THE ORGANIZATION: FOR THE COMMUNITY:
Links • I’ve worked here for such a long time.
• I’m serving on so many teams and
committees.
• Several close friends and family live
nearby.
• My family’s roots are in this
community.
Fit • My job utilizes my skills and talents
well.
• I like the authority and responsibility I
have at this company.
• The weather where I live is suitable
for me.
• I think of the community where I live
as home.
Sacrifice • The retirement benefits provided by
the organization are excellent.
• I would sacrifice a lot if I left this job.
• People respect me a lot in my
community.
• Leaving this community would be
very hard.
Source: Adapted from T.R. Mitchell, B.C. Holtom, T.W. Lee, C.J. Sablynski, and M. Erez, “Why People Stay: Using Job
Embeddedness to Predict Voluntary Turnover,” Academy of Management Journal 44 (2001), pp. 1102–21.
Final PDF to printer
69C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 69 10/11/17 08:40 AM
Normative commitment exists when there is a sense that staying is the “right” or “moral” thing
to do.30 The sense that people should stay with their current employers may result from personal
work philosophies or more general codes of right and wrong developed over the course of their
lives. They may also be dictated by early experiences within the company, if employees are social-
ized to believe that long-term loyalty is the norm rather than the exception.31
Aside from personal work philosophies or organizational socialization, there seem to be two
ways to build a sense of obligation-based commitment among employees. One way is to create a
feeling that employees are in the organization’s debt—that they owe something to the organiza-
tion. For example, an organization may spend a great deal of money training and developing an
employee. In recognition of that investment, the employee may feel obligated to “repay” the orga-
nization with several more years of loyal service.32 Think about how you’d feel if your employer
paid your tuition, allowing you to further your education, while also providing you with training
and developmental job assignments that increased your skills. Wouldn’t you feel a bit guilty if you
took the first job opportunity that came your way?
Another possible way to build an obligation-based sense of commitment is by becoming a par-
ticularly charitable organization. For example, many companies encourage employees to engage
in volunteering—the giving of time or skills during a planned activity for a nonprofit or chari-
table group.33 Such companies may encourage volunteering on employees’ own personal time,
or may create “corporate volunteering” programs where employees can give time or skills during
the workday. Are such efforts a distraction for employees that interferes with their jobs? Quite
the contrary, as research suggests that employees who volunteer are actually more engaged in
their work than employees who don’t. Moreover, employees who volunteer are given “credit” for
those activities by their colleagues.34 For the organization, charitable activities can provide good
public relations, potentially generating goodwill for its products and services and helping attract
new recruits.35 They can also help existing employees feel better about the organization, creating a
deeper sense of normative commitment. Those benefits may be particularly relevant with younger
employees, as evidence indicates that recent generations are somewhat more charitably minded
than previous ones. In support of that view, a growing number of MBA graduates are joining
socially conscious online networks, such as Netimpact.org (see Chapter 7 on trust, justice, and
ethics for more discussion of such issues).36
Comcast recognizes the value of normative commitment. For around a decade, the Philadelphia–
based media company has organized Comcast Cares Day.37 Originally, the day consisted of 50
employees working at a local charity event. One recent year, 60,500 employees, their family mem-
bers, and volunteers worked with local and national nonprofits on a variety of activities, from
planting gardens to cleaning up riverbanks. The head of Comcast’s community involvement pro-
gram contends that Comcast Cares Day was not created to help attract and maintain employ-
ees. Still, she admits that it’s been a positive unintended consequence, especially for younger
employees.
W I T H D R AWA L B E H AV I O R
As noted earlier, one study suggested that 60 percent of employees plan to look for another job
once the economy improves.38 Organizational commitment is, therefore, a vital concern, given
that organizations will need to be fully staffed when business picks back up and industries become
even more competitive. Indeed, organizational commitment is at its most important when employ-
ees are at their most needed. To paraphrase the old saying, “When the going gets tough, the
organization doesn’t want you to get going.” In tough times, organizations need their employees to
demonstrate loyalty, not “get going” right out the door. Of course, it’s those same tough times that
put an employee’s loyalty and allegiance to the test.
Consider the following scenario: You’ve been working at your company for three years and
served on a key product development team for the past several months. Unfortunately, the team
has been struggling of late. In an effort to enhance the team’s performance, the organization has
added a new member to the group. This member has a solid history of product development but
is, by all accounts, a horrible person to work with. You can easily see the employee’s talent
Final PDF to printer
70 C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 70 10/11/17 08:40 AM
but find yourself hating every moment spent in the employee’s presence. This situation is particu-
larly distressing because the team won’t finish its work for another nine months, at the earliest.
What would you do in this situation?
Research on reactions to negative work events suggests that you might respond in one of four
general ways.39 First, you might attempt to remove yourself from the situation, either by being
absent from work more frequently or by voluntarily leaving the organization. This removal is
termed exit, defined as an active, destructive response by which an individual either ends or
restricts organizational membership.40 Second, you might attempt to change the circumstances
by meeting with the new team member to attempt to work out the situation. This action is termed
voice, defined as an active, constructive response in which individuals attempt to improve the situ-
ation (see Chapter 2 on job performance for more discussion of such issues).41 Third, you might
just “grin and bear it,” maintaining your effort level despite your unhappiness. This response
is termed loyalty, defined as a passive, constructive response that maintains public support for
the situation while the individual privately hopes for improvement.42 Fourth, you might just go
through the motions, allowing your performance to deteriorate slowly as you mentally “check
out.” This reaction is termed neglect, defined as a passive, destructive response in which interest
and effort in the job decline.43 Sometimes neglect can be even more costly than exit because it’s
not as readily noticed. Employees may neglect their duties for months (or even years) before their
bosses catch on to their poor behaviors.
Taken together, the exit–voice–loyalty–neglect framework captures most of the possible
responses to a negative work event. Where does organizational commitment fit in? Organizational
commitment should decrease the likelihood that an individual will respond to a negative work
event with exit or neglect (the two destructive responses). At the same time, organizational com-
mitment should increase the likelihood that the negative work event will prompt voice or loyalty
(the two constructive responses). Consistent with that logic, research indeed suggests that orga-
nizational commitment increases the likelihood of voice and loyalty while decreasing the likeli-
hood of exit and neglect.44 To see two of the exit–voice–loyalty–neglect options in action, see our
OB on Screen feature.
If we consider employees’ task performance levels together with their organizational commit-
ment levels, we can gain an even clearer picture of how people might respond to negative work
events. Consider Table 3-3, which depicts combinations of high and low levels of organizational
commitment and task performance. Stars possess high commitment and high performance and
are held up as role models for other employees. Stars likely respond to negative events with voice
because they have the desire to improve the status quo and the credibility needed to inspire
change.45 It’s pretty easy to spot the stars in a given unit, and you can probably think about your
current or past job experiences and identify the employees who would fit that description. Citizens
possess high commitment and low task performance but perform many of the voluntary “extra-
role” activities that are needed to make the organization function smoothly.46 Citizens are likely
to respond to negative events with loyalty because they may lack the credibility needed to inspire
change but do possess the desire to remain a member of the organization. You can spot citizens
by looking for the people who do the little things—showing around new employees, picking up
birthday cakes, ordering new supplies when needed, and so forth.
Lone wolves possess low levels of organizational commitment but high levels of task perfor-
mance and are motivated to achieve work goals for themselves, not necessarily for their com-
pany.47 They are likely to respond to negative events with exit. Although their performance would
give them the credibility needed to inspire change, their lack of attachment prevents them from
using that credibility constructively. Instead, they rely on their performance levels to make them
marketable to their next employer. To spot lone wolves, look for the talented employees who never
seem to want to get involved in important decisions about the future of the company. Finally,
apathetics possess low levels of both organizational commitment and task performance and
merely exert the minimum level of effort needed to keep their jobs.48 Apathetics should respond to
negative events with neglect because they lack the performance needed to be marketable and the
commitment needed to engage in acts of citizenship.
It’s clear from this discussion that exit and neglect represent the f lip side of organizational
commitment: withdrawal behavior. How common is withdrawal behavior within organizations?
3.3
What are the four primary
responses to negative
events at work?
Final PDF to printer
71C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 71 10/11/17 08:40 AM
OB ON SCREEN
©Open Road Films (II)/Photofest
CHEF
Well why don’t you cook the menu without a chef and we see how it goes tonight?
With those words, Chef Carl Casper (Jon Favreau) quits his job in Chef (Dir. Jon Favreau,
Aldamisa Entertainment, 2014). Carl is just a few days removed from receiving a scathing review
from Ramsey Michel (Oliver Platt), the most respected food critic in Los Angeles. And now he’s
taken to Twitter, challenging Michel to give him a second try, this time with an all new menu. As
Carl explains to the hostess, Molly (Scarlett Johansson), “We’re not pushing specials today—the
whole menu is special.” When Molly sees the excitement in Carl’s eyes, he goes on, “I’m excited.
I’m finally happy . . . I’m happy, OK? Am I allowed to be happy, at work?”
Unfortunately for Carl, the restaurant’s owner—Riva (Dustin Hoffman)—doesn’t want that spe-
cial menu. Instead, he wants the unusually large crowd to experience the kind of entrées they can
expect week in and week out. Riva walks back into the kitchen to protest, noting, “So now sud-
denly you’re gonna be an artist. Well, be an artist on your own time.” Carl argues that the crowd is
there to see him face off against the critic and to eat his food. Corrects Riva, “It’s my food because
it’s my restaurant. I pay for the glasses, I pay for the napkins, I pay for the spoons . . . ”
Given an ultimatum, Carl chooses to walk out of the kitchen, and out of Riva’s employ. He was
deeply committed to his craft—to being a chef. Put differently, he had high occupational commit-
ment. But he was no longer committed to Riva. Moreover, given his talent, Carl assumed he had
other options—other restaurants that would hire him. Thus, his exit. The same was not true for
Carl’s sous-chef, Tony. Carl assumes Tony will follow him out of the kitchen and on to whatever
comes next. But Tony is less established in his career—he needs to remain loyal for reasons that
Carl doesn’t. Where does Carl go next? Here’s a hint: His next kitchen is smaller.
Quite common, it turns out. One study clocked employees’ on-the-job behaviors over a two-
year period and found that only about 51 percent of their time was actually spent working! The
other 49 percent was lost to late starts, early departures, long coffee breaks, personal matters,
and other forms of withdrawal.49 As a manager, wouldn’t you like to feel like there was more
than a coin-f lip’s chance that your employees were actually working during the course of a
given day?
Final PDF to printer
72 C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 72 10/11/17 08:40 AM
TABLE 3-3 Four Types of Employees
TASK PERFORMANCE
HIGH LOW
Organizational
Commitment
HIGH Stars Citizens
LOW Lone wolves Apathetics
Source: Adapted from R.W. Griffeth, S. Gaertner, and J.K. Sager, “Taxonomic Model of Withdrawal Behaviors: The Adap-
tive Response Model,” Human Resource Management Review 9 (1999), pp. 577–90.
As shown in Figure 3-4, withdrawal comes in two forms: psychological (or neglect) and physical
(or exit). Psychological withdrawal consists of actions that provide a mental escape from the work
environment.50 Some business articles refer to psychological withdrawal as “warm-chair attrition,”
meaning that employees have essentially been lost even though their chairs remain occupied.51
This withdrawal form comes in a number of shapes and sizes.52 The least serious is daydreaming,
when employees appear to be working but are actually distracted by random thoughts or concerns.
Socializing refers to the verbal chatting about nonwork topics that goes on in cubicles and offices
or at the mailbox or vending machines. Looking busy indicates an intentional desire on the part
of employees to look like they’re working, even when not performing work tasks. Sometimes,
employees decide to reorganize their desks or go for a stroll around the building, even though
they have nowhere to go. (Those who are very good at managing impressions do such things very
briskly and with a focused look on their faces!) When employees engage in moonlighting, they use
work time and resources to complete something other than their job duties, such as assignments
for another job.
Perhaps the most widespread form of psychological withdrawal among white-collar employees
is cyberloafing—using Internet, e-mail, and instant messaging access for their personal enjoyment
rather than work duties.53 Some estimates suggest that typical cubicle dwellers stop what they’re
doing about once every three minutes to send e-mail, check Facebook or Twitter, surf over to You-
Tube, and so forth.54 Such distractions consume as much as 28 percent of employees’ workdays
and cost some $650 billion a year in lost productivity. Sports fans seem particularly vulnerable.
Estimates suggest that Fantasy Football league transactions consume as much as $1.5 billion in
productivity during a typical season.55 The spring isn’t much better, as estimates suggest that
employers lose $1.2 billion as employees watch NCAA tournament games online.56 Some employ-
ees view cyberloafing as a way of “balancing the scales” when it comes to personal versus work
time. For example, one participant in a cyberloafing study noted, “It is alright for me to use the
Internet for personal reasons at work. After all, I do work overtime without receiving extra pay
from my employer.”57 Although such views may seem quite reasonable, other employees view
cyberloafing as a means to retaliate for negative work events. One participant in the same study
noted, “My boss is not the appreciative kind; I take what I can whenever I can. Surfing the net is
my way of hitting back.”
Physical withdrawal consists of actions that provide a physical escape, whether short term or
long term, from the work environment.58 Physical withdrawal also comes in a number of shapes
and sizes. Tardiness reflects the tendency to arrive at work late (or leave work early).59 Of course,
tardiness can sometimes be unavoidable, as when employees have car trouble or must fight
through bad weather, but it often represents a calculated desire to spend less time at work.60 Long
breaks involve longer-than-normal lunches, soda breaks, coffee breaks, and so forth that provide
a physical escape from work. Sometimes, long breaks stretch into missing meetings, which means
employees neglect important work functions while away from the office. As a manager, you’d like
to be sure that employees who leave for lunch are actually going to come back, but sometimes
that’s not a safe bet!
Absenteeism occurs when employees miss an entire day of work.61 Of course, people stay home
from work for a variety of reasons, including illness and family emergencies. There’s also a rhythm
3.4
What are some examples
of psychological with-
drawal? Of physical
withdrawal? How do the
different forms of with-
drawal relate to
each other?
Final PDF to printer
73C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 73 10/11/17 08:40 AM
to absenteeism. For example, employees are more likely to be absent on Mondays or Fridays.
Moreover, streaks of good attendance create a sort of pressure to be absent, as personal respon-
sibilities build until a day at home becomes irresistible.62 That type of absence can sometimes
be functional because people may return to work with their “batteries recharged.”63 Group and
departmental norms also affect absenteeism by signaling whether an employee can get away with
missing a day here or there without being noticed.64
One survey suggests that 57 percent of U.S. employees take sick days when they’re not actu-
ally sick, a trend that has some companies going to extreme measures.65 IKEA, the Sweden-based
furniture maker, recently made headlines for spying on its French employees for various reasons—
including checking on their sick leave use.66 In the
United States, private investigation firms charge
around $75 per hour to send investigators in search
of employees who may be playing hooky. Rick Ray-
mond, an investigator in Florida, once followed a
supposedly sick employee to Universal Studios.67
The employee rode three roller coasters that take
automatic pictures at the sharpest turns. Raymond
bought all three, which conveniently included time
and date stamps. When the employee later claimed
that the photos weren’t her, Raymond responded by
playing back video of her volunteering at an animal
FIGURE 3-4 Psychological and Physical Withdrawal
Psychological
Withdrawal
(NEGLECT)
WITHDRAWAL
BEHAVIOR
Physical
Withdrawal
(EXIT)
Daydreaming Quitting
Absenteeism
Missing
Meetings
Long
Breaks
TardinessCyberloafing
Moonlighting
Looking
Busy
Socializing
In an effort to curb absen-
teeism, some companies
have turned to private
investigators to try to catch
“sick” employees who are
playing hooky.
©Colin Anderson/Getty Images
Final PDF to printer
74 C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 74 10/11/17 08:40 AM
show in the park! The news isn’t all bad for would-be work-skippers. Some of the same firms that
track employees provide training on how to elude the boss’s surveillance attempts.
Finally, the most serious form of physical withdrawal is quitting—voluntarily leaving the organi-
zation. As with the other forms of withdrawal, employees can choose to “turn over” for a variety
of reasons. The most frequent reasons include leaving for more money or a better career oppor-
tunity; dissatisfaction with supervision, working conditions, or working schedule; family factors;
and health.68 Note that many of those reasons reflect avoidable turnover, meaning that the orga-
nization could have done something to keep the employee, perhaps by offering more money,
more frequent promotions, or a better work situation. Family factors and health, in contrast,
usually reflect unavoidable turnover that doesn’t necessarily signal a lack of commitment on the
part of employees.
Regardless of their reasons, some employees choose to quit after engaging in a very thorough,
careful, and reasoned analysis. Typically some sort of “shock,” whether it be a critical job change,
a negative work experience, or an unsolicited job offer, jars employees enough that it triggers
the thought of quitting in them.69 Once the idea of quitting has occurred to them, employees
begin searching for other places to work, compare those alternatives to their current job, and—if
the comparisons seem favorable—quit.70 This process may take days, weeks, or even months as
employees grapple with the decision. In other cases, though, a shock may result in an impulsive,
knee-jerk decision to quit, with little or no thought given to alternative jobs (or how those jobs
compare to the current one).71 Of course, sometimes a shock never occurs. Instead, an employee
decides to quit as a result of a slow but steady decrease in happiness until a “straw breaks the
camel’s back” and voluntary turnover results.
Figure 3-4 shows 10 different behaviors that employees can perform to psychologically or phys-
ically escape from a negative work environment. A key question remains though: “How do all
those behaviors relate to one another?” Consider the following testimonials from uncommitted
(and admittedly fictional) employees:
• “I can’t stand my job, so I do what I can to get by. Sometimes I’m absent, sometimes I socialize,
sometimes I come in late. There’s no real rhyme or reason to it; I just do whatever seems practi-
cal at the time.”
• “I can’t handle being around my boss. I hate to miss work, so I do what’s needed to avoid being
absent. I figure if I socialize a bit and spend some time surfing the Web, I don’t need to ever be
absent. But if I couldn’t do those things, I’d definitely have to stay home . . . a lot.”
• “I just don’t have any respect for my employer anymore. In the beginning, I’d daydream a bit
during work or socialize with my colleagues. As time went on, I began coming in late or taking a
long lunch. Lately I’ve been staying home altogether, and I’m starting to think I should just quit
my job and go somewhere else.”
Each of these statements sounds like something that an uncommitted employee might say.
However, each statement makes a different prediction about the relationships among the with-
drawal behaviors in Figure 3-4. The first statement summarizes the independent forms model
of withdrawal, which argues that the various withdrawal behaviors are uncorrelated with one
another, occur for different reasons, and fulfill different needs on the part of employees.72
From this perspective, knowing that an employee cyberloafs tells you nothing about whether
that employee is likely to be absent. The second statement summarizes the compensatory forms
model of withdrawal, which argues that the various withdrawal behaviors negatively correlate
with one another—that doing one means you’re less likely to do another. The idea is that any
form of withdrawal can compensate for, or neutralize, a sense of dissatisfaction, which makes the
other forms unnecessary. From this perspective, knowing that an employee cyberloafs tells you
that the same employee probably isn’t going to be absent. The third statement summarizes the
progression model of withdrawal, which argues that the various withdrawal behaviors are posi-
tively correlated: The tendency to daydream or socialize leads to the tendency to come in late or
take long breaks, which leads to the tendency to be absent or quit. From this perspective, know-
ing that an employee cyberloafs tells you that the same employee is probably going to be absent
in the near future.
Final PDF to printer
75C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 75 10/11/17 08:40 AM
Which of the three models seems most logical to you? Although all three make some sense,
the progression model has received the most scientific support.73 Studies tend to show that the
withdrawal behaviors in Figure 3-4 are positively correlated with one another.74 Moreover, if you
view the behaviors as a causal sequence moving from left (daydreaming) to right (quitting), the
behaviors that are closest to each other in the sequence tend to be more highly correlated.75 For
example, quitting is more closely related to absenteeism than to tardiness, because absenteeism
is right next to it in the withdrawal progression. These results illustrate that withdrawal behaviors
may begin with very minor actions but eventually can escalate to more serious actions that may
harm the organization.
S U M M A RY: W H AT D O E S I T M E A N TO B E “C O M M I T T E D” ?
So what does it mean to be a “committed” employee? As shown in Figure 3-5, it means a lot of
different things. It means that employees have a strong desire to remain a member of the organiza-
tion, maybe because they want to stay, need to stay, or feel they ought to stay. Regardless of the
reasons for their attachment though, retaining these employees means stopping the progression of
withdrawal that begins with psychological forms and then escalates to behavioral forms. Note that
the negative sign (−) in Figure 3-5 illustrates that high levels of overall organizational commit-
ment reduce the frequency of psychological and physical withdrawal. Note also that psychological
withdrawal goes on to affect physical withdrawal, which represents the progressive nature of such
behaviors.
As you move forward in this book, you’ll notice that every chapter includes a description of
how that chapter’s topic relates to organizational commitment. For example, Chapter 4 on job sat-
isfaction describes how employees’ satisfaction levels influence their organizational commitment.
Chapter 7 on trust, justice, and ethics explains how employees’ trust in management influences
their organizational commitment. Sometimes you’ll notice that a given chapter’s topic relates
more strongly to organizational commitment than to job performance. Other times, however,
the topic may relate similarly to commitment and performance, or even relate more strongly to
performance. Regardless, such differences will help you see exactly why the various topics in this
book are so important to managers.
T R E N D S T H AT A F F E C T C O M M I T M E N T
Now that we’ve described exactly what organizational commitment represents, it’s time to describe
some of the trends that affect it in the contemporary workplace. Put simply, the composition of
the workforce is changing, as is the traditional relationship between employees and employers.
These trends put pressure on some types of commitment and alter the kinds of withdrawal seen
in the workplace.
D I V E R S I T Y O F T H E WO R K F O R C E
One of the most visible trends affecting the workplace is the increased diversity of the U.S. labor
force. Demographically speaking, the percentage of the workforce that is white has dropped to
64 percent.76 Meanwhile, the percentage of minorities in the workforce has reached the follow-
ing levels: African Americans (12 percent), Hispanics (16 percent), and Asians (5 percent).
Thus, minority groups now make up one-third of the workforce. Meanwhile, women have virtu-
ally matched men in terms of workforce percentages, with 53 percent of jobs filled by men and
47 percent by women. These statistics show that the “white, male-dominated” workforce is becom-
ing a thing of the past.
The workforce is becoming diverse in other ways as well. The percentage of members of the
workforce who are 60 years or older stands at around 10 percent.77 As the 78 million Baby Boomers
near retirement, they’re continuing to remain in the workforce significantly longer than previous
3.5
What workplace trends are
affecting organizational
commitment in today’s
organizations?
Final PDF to printer
76 C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 76 10/11/17 08:40 AM
F
IG
U
R
E
3
-5
W
h
a
t
D
o
e
s
It
M
e
a
n
t
o
B
e
“
C
o
m
m
it
te
d
”?
Q
u
itt
in
g
A
b
se
n
te
e
is
m
M
is
si
n
g
M
e
e
tin
g
s
Lo
n
g
B
re
a
ks
T
a
rd
in
e
ss
D
a
yd
re
a
m
in
g
C
yb
e
rl
o
a
fin
g
M
o
o
n
lig
h
tin
g
Lo
o
ki
n
g
B
u
sy
S
o
ci
a
liz
in
g
O
V
E
R
A
LL
O
R
G
A
N
IZ
A
T
IO
N
A
L
C
O
M
M
IT
M
E
N
T
N
o
rm
a
ti
ve
C
o
m
m
it
m
e
n
t
C
o
n
ti
n
u
a
n
ce
C
o
m
m
it
m
e
n
t
P
h
ys
ic
a
l
W
it
h
d
ra
w
a
l
P
sy
ch
o
lo
g
ic
a
l
W
it
h
d
ra
w
a
l
A
�
e
ct
iv
e
C
o
m
m
it
m
e
n
t
−
−
Final PDF to printer
77C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 77 10/11/17 08:40 AM
generations.78 Research suggests that remaining a member of the workforce is actually benefi-
cial to older people’s health, keeping them more mentally and physically fit. Moreover, medical
advances are helping older employees stay vital longer, just as the physical labor component of
most jobs keeps shrinking. The Baby Boomers are also one of the most educated generations,
and research suggests that their continued participation in the workforce could add $3 trillion a
year to the country’s economic output. That, combined with the uncertainty surrounding Social
Security and stock market–based retirement plans, makes staying in the workforce a logical call.
As the economy continues to become more global, U.S. businesses face another important
form of diversity: More and more employees are foreign-born. Although stereotypes view immi-
grants as staffing blue-collar or service jobs, many of the most educated employees come from
abroad. Consider that half of the PhDs working in the United States are foreign-born, as are
45 percent of the physicists, computer scientists, and mathematicians.79 At the same time, more
and more American employees are working as expatriates who staff offices in foreign countries
for long periods of time. Serving as an expatriate can be a very stressful assignment for employees
as they adjust to a new country, a new style of working, and increased distance from family and
friends. See our OB Internationally feature for more discussion of organizational commitment in
multinational corporations.
These forms of diversity make it more challenging to retain valued employees. Consider the
social network diagram in Figure 3-3. As work groups become more diverse with respect to race,
gender, age, and national origin, there’s a danger that minorities or older employees will find
themselves on the fringe of such networks, which potentially reduces their affective commitment.
At the same time, foreign-born employees are likely to feel less embedded in their current jobs and
perceive fewer links to their community and less fit with their geographic area. This feeling may
reduce their sense of continuance commitment. Recent trends suggest that the most educated and
skilled immigrants are leaving the U.S. workforce at a rate of about 1,000 a day, particularly when
their home country’s economy begins to boom.80
T H E C H A N G I N G E M P LOY E E – E M P LOY E R R E L AT I O N S H I P
A few generations ago, many employees assumed that they would work for a single organization
for their entire career. The assumption was that they would exchange a lifetime of loyalty and good
work for a lifetime of job security. That perception changed in the 1980s and 1990s as downsizing
became a more common part of working life. In 1992, downsizing statistics peaked as 3.4 million
jobs were lost, and annual job losses have remained that high ever since.81 Downsizing represents
a form of involuntary turnover, when employees are forced to leave the organization regardless
of their previous levels of commitment. The increase in downsizing has gone hand-in-hand with
increases in temporary workers and outsourcing, fundamentally altering the way employees view
their relationships with their employers.
Companies usually downsize to cut costs, particularly during a recession or economic downturn.
Does downsizing work? Does it make the company more profitable? One study suggests that the
answer is “not usually.” This study examined 3,628 companies over a 15-year time period, of which
59 percent downsized 5 percent or more of their workforce at least once and 33 percent fired
15 percent or more of their workforce at least once.82 The most important result was that downsizing
actually harmed company profitability and stock price. In fact, it typically took firms two years to
return to the performance levels that prompted the downsizing in the first place. The exception to
this rule was companies that downsized in the context of some larger change in assets (e.g., the sale
of a line of business, a merger, an acquisition). However, such firms were relatively rare; only one-
eighth of the downsizers were involved in some sort of asset change at the time the layoffs occurred.
Why doesn’t downsizing tend to work? One reason revolves around the organizational com-
mitment levels of the so-called survivors. The employees who remain in the organization after
a downsizing are often stricken with “survivor syndrome,” characterized by anger, depression,
fear, distrust, and guilt.83 One study found that downsizing survivors actually experienced more
work-related stress than did the downsizing victims who went on to find new employment.84
Survivor syndrome tends to reduce organizational commitment levels at the worst possible time,
as downsizing survivors are often asked to work extra hard to compensate for their lost colleagues.
Final PDF to printer
78 C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 78 10/11/17 08:40 AM
Fostering organizational commitment can be more complex in multinational corporations, for
two primary reasons. First, multinational corporations provide two distinct foci of commitment:
Employees can be committed to the local subsidiary in which they work, or they can be commit-
ted to the global organization. Research on commitment in multinational corporations suggests
that employees draw a distinction between those two foci when judging their commitment. Spe-
cifically, employees distinguish between the prestige of their local subsidiary and the reputation of
the larger organization. They also distinguish between the support provided by their local supervi-
sor and the support provided by the global organization’s top management. Such results reveal
that it’s possible to be committed to the local office but not the overall organization, or vice versa.
Second, multinational corporations require many employees to serve as expatriates for sig-
nificant periods of time. Research suggests that the organizational commitment of expatriates
depends, in part, on how well they adjust to their foreign assignments. Research further suggests
that expatriates’ adjustment comes in three distinct forms:
• Work adjustment. The degree of comfort with specific job responsibilities and performance
expectations.
• Cultural adjustment. The degree of comfort with the general living conditions, climate, cost of
living, transportation, and housing offered by the host culture.
• Interaction adjustment. The degree of comfort when socializing and interacting with members
of the host culture.
A study of American multinational corporations in the transportation, service, manufactur-
ing, chemical, and pharmaceutical industries showed that all three forms of adjustment relate
significantly to affective commitment. If expatriates cannot feel comfortable in their assignment,
it’s difficult for them to develop an emotional bond to their organization. Instead, they’re likely to
withdraw from the assignment, both psychologically and physically.
What factors contribute to an expatriate’s adjustment levels? It turns out that work adjustment
depends on many of the same things that drive domestic employees’ job satisfaction and motiva-
tion. Cultural and interaction adjustment, in contrast, are very dependent on spousal and family
comfort. If an expatriate’s spouse or children are unhappy in their new environment, it becomes
very difficult for the expatriate to remain committed. Fortunately, research suggests that cultural
and interaction adjustment can increase with time, as experiences in the host nation gradually
increase expatriates’ sense of comfort and, ultimately, their commitment to the work assignment.
OB INTERNATIONALLY
Sources: J.S. Black, M. Mendenhall, and G. Oddou, “Toward a Comprehensive Model of International Adjustment: An
Integration of Multiple Theoretical Perspectives,” Academy of Management Review 16 (1991), pp. 291–317; R. Hechanova,
T.A. Beehr, and N.D. Christiansen, “Antecedents and Consequences of Employees’ Adjustment to Overseas Assignment:
A Meta-Analytic Review,” Applied Psychology: An International Review 52 (2003), pp. 213–36; C. Reade, “Antecedents of
Organizational Identification in Multinational Corporations: Fostering Psychological Attachment to the Local Subsidiary
and the Global Organization,” International Journal of Human Resource Management 12 (2001), pp. 1269–91; and M. A.
Shaffer, and D.A. Harrison, “Expatriates’ Psychological Withdrawal from International Assignments: Work, Nonwork,
and Family Influences,” Personnel Psychology 51 (1998), pp. 87–118.
Indeed, a study of 3,500 Boeing employees revealed some particularly stark examples of survivor
syndrome.85 Specifically, the study showed that employees who survived a 33 percent downsizing
had depression scores that were nearly twice as high as those who left. They were also more likely
to binge drink and experience chronic sleeping and health problems.
The change in employee–employer relationships brought about by a generation of downsiz-
ing makes it more challenging to retain valued employees. The most obvious challenge is finding
a way to maintain affective commitment. The negative emotions aroused by survivor syndrome
Final PDF to printer
79C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 79 10/11/17 08:40 AM
likely reduce emotional attachment to the organization. Moreover, if the downsizing has caused
the loss of key figures in employees’ social networks, then their desire to stay will be harmed.
However, a second challenge is to find some way to maintain normative commitment. The sense
that people should stay with their employer may have been eroded by downsizing, with personal
work philosophies now focusing on maximizing marketability for the next opportunity that comes
along. Even if employees felt obligated to remain at a firm in the past, seeing colleagues get dis-
missed in a downsizing effort could change that belief rather quickly.
One way of quantifying the change in employee–employer relationships is to assess how employ-
ees view those relationships psychologically. Research suggests that employees tend to view their
employment relationships in quasi-contractual terms. Specifically, psychological contracts reflect
employees’ beliefs about what they owe the organization and what the organization owes them.86
These contracts are shaped by the recruitment and socialization activities that employees experi-
ence, which often convey promises and expectations that shape beliefs about reciprocal obliga-
tions. Some employees develop transactional contracts that are based on a narrow set of specific
monetary obligations (e.g., the employee owes attendance and protection of proprietary infor-
mation; the organization owes pay and advancement opportunities).87 Other employees develop
relational contracts that are based on a broader set of open-ended and subjective obligations (e.g.,
the employee owes loyalty and the willingness to go above and beyond; the organization owes
job security, development, and support).88 Seeing one’s coworkers downsized can constitute a
“breach” of an employee’s psychological contract, and research suggests that psychological con-
tract breach leads to psychological and physical withdrawal.89 However, trends such as downsiz-
ing, use of temporary workers, and outsourcing may also cause employees to define their contracts
in more transactional (as opposed to relational) terms.
A P P L I C AT I O N : C O M M I T M E N T I N I T I AT I V E S
Now that you’ve gained a good understanding of organizational commitment, as well as some
of the workforce trends that affect it, we close with a discussion of strategies and initiatives that
can be used to maximize commitment. What exactly can companies do to increase loyalty? At
a general level, they can be supportive. Perceived organizational support reflects the degree to
which employees believe that the organization values their contributions and cares about their
well-being.90 Organizations can do a number of things to be supportive, including providing ade-
quate rewards, protecting job security, improving work conditions, and minimizing the impact of
politics.91 In a sense, such support represents the organization’s commitment to its employees.
A meta-analysis of 42 research studies with almost 12,000 participants revealed that perceptions
of support are strongly related to organizational commitment.92 That same review showed that
perceptions of support are associated with lower levels of psychological and physical withdrawal.
For more wisdom on fostering commitment, see our OB at the Bookstore feature.
Beyond being supportive, organizations can engage in specific practices that target the three
forms of commitment. For example, organizations could foster affective commitment by increas-
ing the bonds that link employees together. Ben & Jerry’s holds monthly “joy events” during
which all production stops for a few hours to be replaced by Cajun-themed parties, table ten-
nis contests, and employee appreciation celebrations.93 Monsanto, the St. Louis, Missouri–based
provider of agricultural products, groups staffers into “people teams” charged with designing
employee-bonding activities like “snowshoe softball.”94 Such tight bonding among employees may
explain why Monsanto’s voluntary turnover rate is only 3 percent. Companies like PepsiCo and
Procter & Gamble pay particular attention to mentoring and team-building programs for female
and minority employees to create a sense of solidarity among employees who might otherwise
remain on the fringe of social networks.95
From a continuance commitment perspective, the priority should be to create a salary and
benefits package that creates a financial need to stay. One study compared the impact of a variety
of human resource management practices on voluntary turnover and found that two of the most
3.6
How can organizations
foster a sense of commit-
ment among employees?
Final PDF to printer
80 C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 80 10/11/17 08:40 AM
OB AT THE BOOKSTORE
WIDGETS
by Rodd Wagner (New York: McGraw Hill, 2015).
YOUR PEOPLE ARE NOT YOUR GREATEST ASSET. They’re not yours, and they’re not
assets . . . You don’t own your people. Many of them don’t trust you. Some don’t like you. Too
many won’t stick it out with you. And the ones you need most have the credentials to walk out
fastest if you treat them poorly.
With those words, Rodd Wagner summarizes the importance (and
challenge) that surrounds organizational commitment in today’s
workplace. Commitment is important, but many companies do a
really bad job fostering it. Wagner and his research team conducted
interviews and surveys at hundreds of companies to pursue two goals:
(1) to get a sense of where most employees fall on the commitment
spectrum and (2) to identify “new rules” for increasing loyalty.
Their results on the first goal suggest that 19 percent of employees
are “demoralized”—feeling that their employer treats them like “wid-
gets.” Another 23 percent are “frustrated”—with moments of positiv-
ity surrounded by the sense that the company is poorly run. Another
29 percent are “encouraged”—neither invigorated to give their best
nor upset enough to leave. That leaves only 30 percent in the “ener-
gized” camp—feeling like employers do a great job of treating them
like human beings, not “assets.”
What should companies do to help more employees find their way
into that 30 percent? What are the so-called new rules for fostering commitment? Wagner dis-
cusses 12 rules. Although some are more relevant to other topics in our integrative model of
OB, many are directly relevant to the three types of commitment. For example, Rule #1, “Get
Inside Their Heads,” is relevant to affective commitment. It urges managers to truly understand
their employees—what they want from their work and how managers can help give it to them. As
another example, Rule #3, “Make Money a Non-Issue,” affects continuance commitment. Pay
employees fairly so that concerns about pay don’t short-circuit loyalty.
Are you curious whether your current or previous employer is following these rules, and
whether you’re “energized,” “demoralized,” or somewhere in between? If so, just Google
“New Rules Index” to find out!
©Roberts Publishing Services
significant predictors were average pay level and quality of the benefits package.96 Of course,
one factor that goes hand-in-hand with salaries and benefits is advancement/promotion because
salaries cannot remain competitive if employees get stuck in neutral when climbing the career lad-
der.97 Perhaps that’s why companies that are well known for their commitment to promotion-from-
within policies, like A.G. Edwards and the Principal Financial Group, also enjoy especially low
voluntary turnover rates.98 Paying attention to career paths is especially important for star employ-
ees and foreign-born employees, both of whom have many options for employment elsewhere.99
From a normative commitment perspective, the employer can provide various training and
development opportunities for employees, which means investing in them to create the sense that
they owe further service to the organization. As the nature of the employee–employer relation-
ship has changed, opportunities for development have overtaken secure employment on the list
of employee priorities.100 IBM is one company with a reputation for prioritizing development. Its
“workforce management initiative” keeps a database of 33,000 résumés to develop a snapshot of
Final PDF to printer
81C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 81 10/11/17 08:40 AM
3.1 Organizational commitment is the desire on the part of an employee to remain a member
of the organization. Withdrawal behavior is a set of actions that employees perform to avoid
the work situation. Commitment and withdrawal are negatively related to each other—the
more committed employees are, the less likely they are to engage in withdrawal.
3.2 There are three types of organizational commitment. Affective commitment occurs when
employees want to stay and is influenced by the emotional bonds between employees.
Continuance commitment occurs when employees need to stay and is influenced by salary
and benefits and the degree to which they are embedded in the community. Normative
commitment occurs when employees feel that they ought to stay and is influenced by an
organization investing in its employees or engaging in charitable efforts.
3.3 Employees can respond to negative work events in four ways: exit, voice, loyalty, and neglect.
Exit is a form of physical withdrawal in which the employee either ends or restricts orga-
nizational membership. Voice is an active and constructive response by which employees
TA K E AWAY S
Ben & Jerry’s, founded
by Ben Cohen and Jerry
Greenfield, goes to great
lengths to encourage
employees to hang out
together and have fun
during their workweek.
Such bonding activities
lower turnover and encour-
age valued employees to
remain.
©Rebecca Sapp/Getty Images
employee skills.101 IBM uses that snapshot to plan its future training and development activities,
with $400 million of the company’s $750 million training budget devoted to giving employees
the skills they may need in the future. If employees find developmental activities beneficial and
rewarding, they may be tempted to repay those efforts with additional years of service.
A final practical suggestion centers on what to do if withdrawal begins to occur. Managers are
usually tempted to look the other way when employees engage in minor forms of withdrawal. After
all, sometimes such behaviors simply represent a break in an otherwise busy day. However, the
progression model of withdrawal shows that even minor forms of psychological withdrawal often
escalate, eventually to the point of absenteeism and turnover. The implication is, therefore, to stop
the progression in its early stages by trying to root out the source of the reduced commitment.
Many of the most effective companies make great efforts to investigate the causes of low commit-
ment, whether at the psychological withdrawal stage or during exit interviews. As one senior oil
executive acknowledged, the loss of a talented employee warrants the same sort of investigation as
a technical malfunction that causes significant downtime on an oil rig.102
Final PDF to printer
coL27660_ch03_060-090.indd 82 10/11/17 08:40 AM
82 C H A P T E R 3 Organizational Commitment
3.1 Which type of organizational commitment (affective, continuance, or normative) do you
think is most important to the majority of employees? Which do you think is most impor-
tant to you?
3.2 Describe other ways that organizations can improve affective, continuance, and normative com-
mitment, other than the strategies suggested in this chapter. How expensive are those strategies?
3.3 Consider times when you’ve reacted to a negative event with exit, voice, loyalty, or neglect.
What was it about the situation that caused you to respond the way you did? Do you usually
respond to negative events in the same way, or does your response vary across the four options?
3.4 Can organizations use a combination of monitoring and punishment procedures to reduce
psychological and physical withdrawal? How might such programs work from a practical
perspective? Do you think they would be effective?
D I S C U S S I O N Q U E S T I O N S
attempt to improve the situation. Loyalty is passive and constructive; employees remain sup-
portive while hoping the situation improves on its own. Neglect is a form of psychological
withdrawal in which interest and effort in the job decrease.
3.4 Examples of psychological withdrawal include daydreaming, socializing, looking busy,
moonlighting, and cyberloafing. Examples of physical withdrawal include tardiness, long
breaks, missing meetings, absenteeism, and quitting. Consistent with the progression model,
withdrawal behaviors tend to start with minor psychological forms before escalating to more
major physical varieties.
3.5 The increased diversity of the workforce can reduce commitment if employees feel lower
levels of affective commitment or become less embedded in their current jobs. The
employee–employer relationship, which has changed due to decades of downsizing, can
reduce affective and normative commitment, making it more of a challenge to retain tal-
ented employees.
3.6 Organizations can foster commitment among employees by fostering perceived organiza-
tional support, which reflects the degree to which the organization cares about employees’
well-being. Commitment can also be fostered by specific initiatives directed at the three
commitment types.
K E Y T E R M S
• Organizational commitment p. 62
• Withdrawal behavior p. 62
• Affective commitment p. 63
• Continuance commitment p. 63
• Normative commitment p. 63
• Focus of commitment p. 65
• Erosion model p. 65
• Social influence model p. 65
• Embeddedness p. 68
• Volunteering p. 69
• Exit p. 70
• Voice p. 70
• Loyalty p. 70
• Neglect p. 70
• Stars p. 70
• Citizens p. 70
• Lone wolves p. 70
• Apathetics p. 70
• Psychological withdrawal p. 72
• Physical withdrawal p. 72
• Independent forms model p. 74
• Compensatory forms model p. 74
• Progression model p. 74
• Psychological contracts p. 79
• Transactional contracts p. 79
• Relational contracts p. 79
• Perceived organizational
support p. 79
Final PDF to printer
83C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 83 10/11/17 08:40 AM
PwC is certainly not the first group to attempt a large-scale study of Millennial attitudes. Such
studies face an inherent challenge, however. Researchers have to be able to separate the effects
of generation membership—Millennial, Gen-X, or Baby Boomer—from the effect of stage of
life—being twenty-something, thirty-something, or forty/fifty-something. Suppose a given study
showed that 25-year olds were especially attracted to firms that offered paid time off for volun-
teering. Is the explanation for that finding that Millennials value volunteering more than previ-
ous generations, or that twenty-somethings value it more than older employees? That’s a critical
distinction because Millennials will remain members of their generation for their lifespan,
whereas twenty-somethings will eventually turn into thirty-somethings.
One study, published in Journal of Management, did an especially good job of teasing apart gen-
eration membership and stage of life. The study drew from an annual survey of 15,000 high school
seniors—thereby holding stage of life constant. Respondents were classified as Baby Boomers if
they were born between 1946 and 1964, as Gen-X if they were born between 1965 and 1981, and
as Millennials if they were born between 1982 and 1999. What did the study uncover? One finding
was that Millennials valued leisure time more than either Gen-X or Baby Boomers, being more
likely to value “A job that leaves a lot of time for other things in your life.” Somewhat surprisingly
given existing stereotypes, there were few differences across generations in valuing intrinsic rewards
(“A job that is interesting to do”), altruistic rewards (“A job that gives you an opportunity to be
directly helpful to others”), or social rewards (“A job that gives you a chance to make friends”).
Millennials were less focused on extrinsic rewards (“A job that provides you with a chance to earn a
good deal of money”) than Gen-X, but more focused on such things than Baby Boomers.
The finding that Millennials value leisure time dovetails nicely with PwC’s own results. Their study
showed that 95 percent of Millennials believed that work-life balance was important to them. More-
over, 25 percent of Millennials were disappointed in the work-life balance that PwC was affording
them. From a loyalty perspective, those 25 percent can be viewed as “retention risks”—employees who
may decide to turn over because they no longer want to stay with PwC. In response, PwC organized
a top-down initiative where managers were encouraged to work with their employees to chart out a
work schedule that suited them. The good news is that PwC now understands what drives loyalty
among Millennials. The bad news is that future interns will soon be members of the next generation!
3.1 Compare the findings described above for Millennials to your own views on Millennial char-
acteristics. What surprises you about the findings? What doesn’t surprise you?
3.2 If you think about the three types of commitment—affective, continuance, and normative—
which do you think is most changed among Millennials (or twenty-somethings)? In what way?
3.3 Consider all the initiatives and programs PwC uses to inspire employee loyalty. Do most
of those seek to “move the needle” on affective commitment, continuance commitment, or
normative commitment?
Sources: C. Groden, “Five Things You Can Do to Attract Millennial Talent,” Fortune, March 15, 2016; R. Levering, “The
100 Best Companies to Work For,” Fortune, March 15, 2016; M. Moskowitz, and R. Levering, “The 100 Best Companies to
Work For,” Fortune, March 15, 2015; P. Thallner, “Where Hours Aren’t Everything,” Great Place to Work, March 29, 2016,
https://www.greatplacetowork.com/blog/130-where-hours-aren-t-everything?highlight=WyJwd2MiLCJwd2MncyJd; J.M.
Twenge, S.M. Campbell, B.J. Hoffman, and C.E. Lance, “Generational Differences in Work Values: Leisure and Extrinsic
Values Increasing, Social and Intrinsic Values Decreasing,” Journal of Management 36, pp. 1117–42; and C. Zillman, “Hot
New Perk: Paying Down Student Loans,” Fortune, March 15, 2016.
C A S E : P W C
3.5 Can you think of reasons the increased diversity of the workforce might actually increase
organizational commitment? Why? Which of the three types of commitment might explain
that sort of result?
3.6 Studies suggest that decades of downsizing have lowered organizational commitment levels.
Can you think of a way that an organization can conduct layoffs without harming the com-
mitment of the survivors? How?
Final PDF to printer
coL27660_ch03_060-090.indd 84 10/11/17 08:40 AM
EXERCISE: REACTING TO NEGATIVE EVENTS
The purpose of this exercise is to explore how individuals react to three all-too-common
scenarios that represent negative workplace events. This exercise uses groups, so your instructor
will either assign you to a group or ask you to create your own group. The exercise has the
following steps:
3.1 Individually read the following three scenarios: the annoying boss, the boring job, and pay
and seniority. For each scenario, write down two specific behaviors in which you would
likely engage in response to that scenario. Write down what you would actually do, as
opposed to what you wish you would do. For example, you may wish that you would march
into your boss’s office and demand a change, but if you would actually do nothing, write
down “nothing.”
3.2 In groups, compare and contrast your likely responses to the three scenarios. Come to a
consensus on the two most likely responses for the group as a whole. Elect one group mem-
ber to write the two likely responses to each of the three scenarios on the board or on a
transparency.
3.3 Class discussion (whether in groups or as a class) should center on where the likely responses
fit into the exit–voice–loyalty–neglect framework. What personal and situational factors
would lead someone to one category of responses over another? Are there any responses
that do not fit into the exit–voice–loyalty–neglect framework?
Annoying Boss You’ve been working at your current company for
about a year. Over time, your boss has become more
and more annoying to you. It’s not that your boss is
a bad person, or even necessarily a bad boss. It’s
more a personality conflict—the way your boss talks,
the way your boss manages every little thing, even
the facial expressions your boss uses. The more time
passes, the more you just can’t stand to be around
your boss.
Two likely
behaviors:
Boring Job You’ve been working at your current company for
about a year. You’ve come to realize that your job
is pretty boring. It’s the first real job you’ve ever
had, and at first it was nice to have some money
and something to do every day. But the “new job”
excitement has worn off, and things are actually quite
monotonous. Same thing every day. It’s to the point
that you check your watch every hour, and Wednes-
days feel like they should be Fridays.
Two likely
behaviors:
Pay and Seniority You’ve been working at your current company for
about a year. The consensus is that you’re doing
a great job—you’ve gotten excellent performance
evaluations and have emerged as a leader on many
projects. As you’ve achieved this high status, however,
you’ve come to feel that you’re underpaid. Your com-
pany’s pay procedures emphasize seniority much more
than job performance. As a result, you look at other
members of your project teams and see poor perform-
ers making much more than you, just because they’ve
been with the company longer.
Two likely
behaviors:
84 C H A P T E R 3 Organizational Commitment
Final PDF to printer
coL27660_ch03_060-090.indd 85 10/11/17 08:40 AM
3.1 Shepherd, L. “Focusing
Knowledge Reten-
tion on Millennials.”
Workforce Management,
August 2010, p. 6.
3.2 Allen, D.G.; P.C.
Bryant; and J.M.
Vardaman. “Retaining
Talent: Replacing
Misconceptions with
Evidence-Based Strate-
gies.” Academy of Man-
agement Perspectives 24
(2010), pp. 48–64.
3.3 Meyer, J.P., and N.J.
Allen. Commitment in
the Workplace. Thousand
Oaks, CA: Sage, 1997;
and Mowday, R.T.; R.M.
Steers; and L.W. Porter.
“The Measurement of
Organizational Com-
mitment.” Journal of
Vocational Behavior 14
(1979), pp. 224–47.
3.4 Hulin, C.L. “Adapta-
tion, Persistence, and
Commitment in Organi-
zations.” In Handbook
of Industrial and Organi-
zational Psychology, Vol.
2, ed. M.D. Dunnette
and L.M. Hough. Palo
Alto, CA: Consulting
Psychologists Press,
1991, pp. 445–506.
3.5 Allen, N.J., and
J.P. Meyer. “The
Measurement and Ante-
cedents of Affective,
Continuance and Nor-
mative Commitment
to the Organization.”
Journal of Occupational
Psychology 63 (1990),
pp. 1–18; Meyer, J.P.,
and N.J. Allen. “A
Three-Component
Conceptualization of
Organizational Commit-
ment.” Human Resource
Management Review
1 (1991), pp. 61–89;
and Meyer and Allen,
Commitment in the
Workplace.
3.6 Ibid.
3.7 Ibid.
3.8 Meyer and Allen,
Commitment in the
Workplace.
3.9 Mowday et al.,
“The Measurement
of Organizational
Commitment.”
3.10 Ashforth, B.E.; S.H.
Harrison; and K.G.
Corley. “Identification
in Organizations:
An Examination of
Four Fundamental
Questions.” Journal of
Management 34 (2008),
pp. 325–74.
3.11 Ibid.
3.12 Meyer, J.P.; D.J. Stan-
ley; L. Herscovitch;
and L. Topolnytsky.
“Affective, Continu-
ance, and Normative
Commitment to the
Organization: A Meta-
Analysis of Anteced-
ents, Correlates, and
Consequences.” Journal
of Vocational Behavior
61 (2002), pp. 20–52.
3.13 Mathieu, J.E., and
D.M. Zajac. “A Review
and Meta-Analysis
of the Antecedents,
Correlates, and Conse-
quences of Organiza-
tional Commitment.”
Psychological Bulletin
108 (1990), pp. 171–94.
3.14 Johns, G. “The Psy-
chology of Lateness,
Absenteeism, and
Turnover.” In Handbook
of Industrial, Work,
and Organizational
Psychology, ed. N.
Anderson; D.S. Ones;
H.K. Sinangil; and C.
Viswesvaran. Thousand
Oaks, CA: Sage, 2001,
pp. 232–52.
3.15 Ibid.
3.16 Flint, J. “Analyze This.”
Bloomberg Business-
week, February 21–27,
2011, pp. 82–83.
3.17 Ladika, S. “Socially
Evolved.” Workforce
Management,
September 2010,
pp. 18–22.
3.18 Kanter, R.M.
“Commitment and
Social Organization:
A Study of Commit-
ment Mechanisms in
Utopian Communities.”
American Sociological
Review 33 (1968), pp.
499–517.
3.19 Stebbins, R.A. Commit-
ment to Deviance: The
Nonprofessional Crimi-
nal in the Community.
Westport, CT: Green-
wood Press, 1970.
3.20 Becker, H.S. “Notes on
the Concept of Com-
mitment.” American
Journal of Sociology 66
(1960), pp. 32–42.
3.21 Rusbult, C.E., and D.
Farrell. “A Longitudinal
Test of the Investment
Model: The Impact of
Job Satisfaction, Job
Commitment, and
E N D N OT E S
85C H A P T E R 3 Organizational Commitment
Final PDF to printer
86 C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 86 10/11/17 08:40 AM
Turnover of Variations
in Rewards, Costs,
Alternatives, and
Investments.” Journal
of Applied Psychology 68
(1983), pp. 429–38.
3.22 Meyer and Allen,
Commitment in the
Workplace.
3.23 Meyer et al., “Affective,
Continuance, and Nor-
mative Commitment.”
3.24 Mitchell, T.R.; B.C.
Holtom; T.W. Lee;
C.J. Sablynski; and
M. Erez. “Why People
Stay: Using Job Embed-
dedness to Predict
Voluntary Turnover.”
Academy of Manage-
ment Journal 44 (2001),
pp. 1102–21.
3.25 Felps, W.; T.R. Mitchell;
D.R. Hekman; T.W.
Lee; B.C. Holtom; and
W.S. Harman. “Turn-
over Contagion: How
Coworkers’ Job Embed-
dedness and Job Search
Behaviors Influence
Quitting.” Academy of
Management Journal 52
(2009), pp. 545–61; and
Hom, P.W.; A.S. Tsui;
J.B. Wu; T.W. Lee; A.Y.
Zhang; P.P. Fu; and L.
Li. “Explaining Employ-
ment Relationships
with Social Exchange
and Job Embedded-
ness.” Journal of Applied
Psychology 94 (2009),
pp. 277–97.
3.26 Burton, J.P.; B.C.
Holtom; C.J. Sablynski;
T.R. Mitchell; and T.W.
Lee. “The Buffering
Effects of Job Embed-
dedness on Negative
Shocks.” Journal of
Vocational Behavior 76
(2010), pp. 42–51.
3.27 Ramesh, A., and M.J.
Gelfand. “Will They
Stay or Will They Go?
The Role of Job Embed-
dedness in Predicting
Turnover in Individual-
istic and Collectivistic
Cultures.” Journal of
Applied Psychology 95
(2010), pp. 807–23.
3.28 Ng, T.W.H., and D.C.
Feldman. “Organiza-
tional Embeddedness
and Occupational
Embeddedness across
Career Stages.” Journal
of Vocational Behavior
70 (2007), pp. 336–51.
3.29 Levering, R., and M.
Moskowitz. “The 100
Best Companies to
Work For.” Fortune,
January 24, 2005,
pp. 64–94.
3.30 Allen and Meyer, “The
Measurement and
Antecedents of Affec-
tive, Continuance and
Normative Commit-
ment to the Organiza-
tion”; Meyer and Allen,
“A Three-Component
Conceptualization”;
and Meyer and Allen,
Commitment in the
Workplace.
3.31 Wiener, Y. “Commit-
ment in Organizations:
A Normative View.”
Academy of Manage-
ment Review 7 (1982),
pp. 418–28.
3.32 Meyer and Allen, “A
Three-Component
Conceptualization.”
3.33 Rodell, J.B. “Finding
Meaning through
Volunteering: Why Do
Employees Volunteer
and What Does It
Mean for Their Jobs?”
Academy of Manage-
ment Journal 56 (2013),
pp. 1274–94.
3.34 Rodell, J.B., and J.W.
Lynch. “Perceptions of
Employee Volunteer-
ing: Is It ‘Credited’ or
‘Stigmatized’ by Col-
leagues?” Academy of
Management Journal 56
(2016), pp. 611–35.
3.35 Grow, B. “The Debate
over Doing Good.”
BusinessWeek, August
15, 2005, pp. 76–78.
3.36 Ibid.
3.37 Rafter, M.V. “Appealing
to Workers’ Civic Side.”
Workforce Management,
August 2010, p. 3.
3.38 Frauenheim, E. “The
Manager Question.”
Workforce Management,
April 2010, pp. 19–24.
3.39 Hirschman, A.O. Exit,
Voice, and Loyalty:
Responses to Decline in
Firms, Organizations,
and States. Cambridge,
MA: Harvard Univer-
sity Press, 1970; and
Farrell, D. “Exit, Voice,
Loyalty, and Neglect
as Responses to Job
Dissatisfaction: A
Multidimensional Scal-
ing Study.” Academy of
Management Journal 26
(1983), pp. 596–607.
3.40 Hirschman, Exit, Voice,
and Loyalty; Farrell,
“Exit, Voice, Loyalty,
and Neglect”; and
Rusbult, C.E.; D. Farrell;
C. Rogers; and A.G.
Mainous III. “Impact of
Exchange Variables on
Exit, Voice, Loyalty, and
Neglect: An Integrating
Model of Responses
to Declining Job
Final PDF to printer
87C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 87 10/11/17 08:40 AM
Satisfaction.”
Academy of Manage-
ment Journal 31 (1988),
pp. 599–627.
3.41 Ibid.
3.42 Ibid.
3.43 Farrell, “Exit, Voice,
Loyalty, and Neglect”;
and Rusbult et al.,
“Impact of Exchange
Variables.”
3.44 Withey, M.J., and W.H.
Cooper. “Predicting
Exit, Voice, Loyalty,
and Neglect.” Adminis-
trative Science Quarterly
34 (1989), pp. 521–39;
and Burris, E.R.;
J.R. Detert; and D.S.
Chiaburu. “Quitting
Before Leaving: The
Mediating Effects of
Psychological Attach-
ment and Detachment
on Voice.” Journal of
Applied Psychology 93
(2008), pp. 912–22.
3.45 Griffeth, R.W.; S.
Gaertner; and J.K.
Sager. “Taxonomic
Model of Withdrawal
Behaviors: The Adap-
tive Response Model.”
Human Resource
Management Review 9
(1999), pp. 577–90.
3.46 Ibid.
3.47 Ibid.
3.48 Ibid.
3.49 Cherrington, D. The
Work Ethic. New York:
AMACOM, 1980.
3.50 Hulin, C.L.; M.
Roznowski; and D.
Hachiya. “Alternative
Opportunities and
Withdrawal Decisions:
Empirical and Theo-
retical Discrepancies
and an Integration.”
Psychological Bulletin
97 (1985), pp. 233–50.
3.51 Fisher, A. “Turning
Clock-Watchers into
Stars.” Fortune, March
22, 2004, p. 60.
3.52 Hulin et al., “Alterna-
tive Opportunities and
Withdrawal Decisions.”
3.53 Lim, V.K.G. “The IT
Way of Loafing on the
Job: Cyberloafing, Neu-
tralizing, and Organiza-
tional Justice.” Journal
of Organizational
Behavior 23 (2002),
pp. 675–94.
3.54 Jackson, M. “May We
Have Your Attention,
Please?” BusinessWeek,
June 23, 2008, p. 55.
3.55 Spitznagel, E. “Any
Given Monday.” Bloom-
berg Businessweek,
September 13–19, 2010,
pp. 81–83.
3.56 Gerdes, L. “Nothin’ But
Net.” BusinessWeek,
March 26, 2007, p. 16.
3.57 Source: Lim, Vivien
KG. “The IT way of
loafing on the job:
cyberloafing, neutraliz-
ing and organizational
justice.” Journal of
Organizational Behavior
23.5 (2002): 675-694.
3.58 Hulin et al., “Alterna-
tive Opportunities and
Withdrawal Decisions.”
3.59 Koslowsky, M.; A.
Sagie; M. Krausz; and
A.D. Singer. “Cor-
relates of Employee
Lateness: Some Theo-
retical Considerations.”
Journal of Applied
Psychology 82 (1997),
pp. 79–88.
3.60 Blau, G. “Develop-
ing and Testing a
Taxonomy of Lateness
Behavior.” Journal of
Applied Psychology 79
(1994), pp. 959–70.
3.61 Muchinsky, P.M.
“Employee Absentee-
ism: A Review of the
Literature.” Journal of
Vocational Behavior 10
(1977), pp. 316–40;
and Harrison, D.A.
“Time for Absenteeism:
A 20-Year Review of
Origins, Offshoots, and
Outcomes.” Journal of
Management 24 (1998),
pp. 305–50.
3.62 Fichman, M. “Motiva-
tional Consequences
of Absence and Atten-
dance: Proportional
Hazard Estimation of
a Dynamic Motivation
Model.” Journal of
Applied Psychology 73
(1988), pp. 119–34.
3.63 Martocchio, J.J., and
D.I. Jimeno. “Employee
Absenteeism as an
Affective Event.”
Human Resource
Management Review 13
(2003), pp. 227–41.
3.64 Nicholson, N., and G.
Johns. “The Absence
Climate and the Psy-
chological Contract:
Who’s in Control of
Absence?” Academy of
Management Review 10
(1985), pp. 397–407.
3.65 Spitznagel, E. “The
Sick-Day Bounty
Hunters.” Bloomberg
Businessweek,
December 6–12, 2010,
pp. 93–95.
3.66 Lucas, S. “The Shock
and Awe of IKEA’s
Final PDF to printer
88 C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 88 10/11/17 08:40 AM
Employee Spying Pro-
gram.” Inc., December,
2013.
3.67 Ibid.
3.68 Campion, M.A.
“Meaning and Measure-
ment of Turnover:
Comparison of Alter-
native Measures and
Recommendations for
Research.” Journal of
Applied Psychology 76
(1991), pp. 199–212.
3.69 Lee, T.W., and T.R.
Mitchell. “An Alterna-
tive Approach: The
Unfolding Model of
Voluntary Employee
Turnover.” Academy
of Management
Review 19 (1994),
pp. 51–89; Lee, T.W.,
and T.R. Mitchell. “An
Unfolding Model of
Voluntary Employee
Turnover.” Academy of
Management Journal 39
(1996), pp. 5–36; Lee,
T.W.; T.R. Mitchell;
B.C. Holtom; L.S.
McDaniel; and J.W.
Hill. “The Unfolding
Model of Voluntary
Turnover: A Replica-
tion and Extension.”
Academy of Manage-
ment Journal 42
(1999), pp. 450–62;
and Lee, T.H.; B.
Gerhart; I. Weller; and
C.O. Trevor. “Under-
standing Voluntary
Turnover: Path-Specific
Job Satisfaction Effects
and the Importance
of Unsolicited Job
Offers.” Academy of
Management Journal 51
(2008), pp. 651–71.
3.70 Mobley, W. “Intermedi-
ate Linkages in the
Relationship Between
Job Satisfaction and
Employee Turnover.”
Journal of Applied
Psychology 62 (1977),
pp. 237–40; and Hom,
P.W.; R. Griffeth; and
C.L. Sellaro. “The
Validity of Mobley’s
(1977) Model of
Employee Turnover.”
Organizational Behavior
and Human Perfor-
mance 34 (1984),
pp. 141–74.
3.71 Lee and Mitchell, “An
Alternative Approach”;
Lee and Mitchell, “An
Unfolding Model of
Voluntary Employee
Turnover”; Lee and
Mitchell, “The Unfold-
ing Model of Voluntary
Turnover”; and Porter,
L.W., and R.M. Steers.
“Organizational, Work,
and Personal Factors
in Employee Turnover
and Absenteeism.”
Psychological Bulletin
80 (1973), pp. 151–76.
3.72 Johns, “The Psychology
of Lateness, Absentee-
ism, and Turnover.”
3.73 Rosse, J.G. “Relations
among Lateness,
Absence, and Turnover:
Is There a Progres-
sion of Withdrawal?”
Human Relations 41
(1988), pp. 517–31.
3.74 Mitra, A.; G.D. Jenkins
Jr.; and N. Gupta. “A
Meta-Analytic Review
of the Relationship
Between Absence and
Turnover.” Journal of
Applied Psychology 77
(1992), p. 879–89;
Koslowsky et al., “Cor-
relates of Employee
Lateness”; and Grif-
feth, R.W.; P.W. Hom;
and S. Gaertner. “A
Meta-Analysis of Ante-
cedents and Correlates
of Employee Turnover:
Update, Moderator
Tests, and Research
Implications for the
Next Millennium.”
Journal of Management
26 (2000),
pp. 463–88.
3.75 Koslowsky et al., “Cor-
relates of Employee
Lateness.”
3.76 Burns, C.; K. Barton;
and S. Kerby. “The
State of Diversity in
Today’s Workforce.”
Center for American
Progress, July 2012.
3.77 Ibid.
3.78 Coy, P. “Old. Smart.
Productive.” Business-
Week, June 27, 2005,
pp. 78–86.
3.79 Fisher, A. “Holding
on to Global Talent.”
BusinessWeek, October
31, 2005, p. 202.
3.80 Fisher, “Holding on to
Global Talent.”
3.81 Morris, J.R.; W.F.
Cascio; and C.E.
Young. “Downsizing
after All These Years:
Questions and Answers
about Who Did It,
How Many Did It, and
Who Benefited from
It.” Organizational
Dynamics 27 (1999),
pp. 78–87.
3.82 Ibid.
3.83 Devine, K.; T. Reay;
L. Stainton; and R.
Collins-Nakai. “Down-
sizing Outcomes: Better
a Victim Than a Survi-
vor?” Human Resource
Final PDF to printer
89C H A P T E R 3 Organizational Commitment
coL27660_ch03_060-090.indd 89 10/11/17 08:40 AM
Management 42 (2003),
pp. 109–24.
3.84 Ibid.
3.85 Conlin, M. “When the
Laid-Off Are Better
Off.” BusinessWeek,
November 2, 2009,
p. 65.
3.86 Rousseau, D.M. “Psy-
chological and Implied
Contracts in Organi-
zations.” Employee
Responsibilities and
Rights Journal 2 (1989),
pp. 121–39.
3.87 Rousseau, D.M. “New
Hire Perceptions of
Their Own and Their
Employer’s Obligations:
A Study of Psychologi-
cal Contracts.” Journal
of Organizational
Behavior 11 (1990),
pp. 389–400; Robin-
son, S.L.; M.S. Kraatz;
and D.M. Rousseau.
“Changing Obligations
and the Psychological
Contract: A Longitu-
dinal Study.” Academy
of Management Journal
37 (1994), pp. 137–52;
and Robinson, S.L.,
and E.W. Morrison.
“Psychological Con-
tracts and OCB: The
Effect of Unfulfilled
Obligations on Civic
Virtue Behavior.” Jour-
nal of Organizational
Behavior 16 (1995),
pp. 289–98.
3.88 Ibid.
3.89 Robinson, S.L. “Violat-
ing the Psychological
Contract: Not the
Exception but the
Norm.” Journal of
Organizational Behavior
15 (1994), pp. 245–59;
Robinson, S.L. “Trust
and Breach of the Psy-
chological Contract.”
Administrative Science
Quarterly 41 (1996),
pp. 574–99; Zhao,
H.; S.J. Wayne; B.C.
Glibkowski; and J.
Bravo. “The Impact of
Psychological Contract
Breach on Work-
Related Outcomes:
A Meta-Analysis.”
Personnel Psychology
60 (2007), pp. 647–80;
and Bal, P.M.; A.H. De
Lange; P.G.W. Jansen;
and M.E.G. Van der
Velde. “Psychological
Contract Breach and
Job Attitudes: A Meta-
Analysis of Age as a
Moderator.” Journal of
Vocational Behavior 72
(2008), pp. 143–58.
3.90 Eisenberger, R.; R.
Huntington; S. Hutchi-
son; and D. Sowa. “Per-
ceived Organizational
Support.” Journal of
Applied Psychology 71
(1986), pp. 500–507.
3.91 Rhoades, L., and R.
Eisenberger. “Perceived
Organizational Sup-
port.” Journal of Applied
Psychology 87 (2002),
pp. 698–714; and Allen,
D.G.; L.M. Shore; and
R.W. Griffeth. “The
Role of Perceived
Organizational Support
and Supportive Human
Resources Practices in
the Turnover Process.”
Journal of Management
29 (2003), pp. 99–118.
3.92 Rhoades and Eisen-
berger, “Perceived Orga-
nizational Support.”
3.93 Dessler, G. “How to
Earn Your Employees’
Commitment.”
Academy of Manage-
ment Executive 13
(1999), pp. 58–67.
3.94 Levering and Mos-
kowitz, “In Good
Company.”
3.95 Fisher, A. “How You
Can Do Better on
Diversity.” Business-
Week, November
15, 2005, p. 60; and
Fisher, “Holding on to
Global Talent.”
3.96 Shaw, J.D.; J.E.
Delery; G.D. Jenkins
Jr.; and N. Gupta. “An
Organization-Level
Analysis of Voluntary
and Involuntary
Turnover.” Academy of
Management Journal
41 (1998), pp. 511–25.
3.97 Dessler, “How to
Earn Your Employees’
Commitment.”
3.98 Levering and Mos-
kowitz, “In Good
Company.”
3.99 Fisher, “Holding on
to Global Talent”; and
Fisher, A. “How to
Keep your Stars from
Leaving.” Business-
Week, July 26, 2005,
p. 44.
3.100 Cappelli, P. “Managing
without Commit-
ment.” Organizational
Dynamics 28 (2000),
pp. 11–24.
3.101 Byrnes, N. “Star
Search.” Business-
Week, October 10,
2005, pp. 68–78.
3.102 Ibid.
Final PDF to printer
coL27660_ch03_060-090.indd 90 10/11/17 08:40 AM
Final PDF to printer
coL27660_ch04_091-123.indd 91 10/11/17 08:41 AM
CHAPTER 4
Job Satisfaction
CHAPTER 5
Stress
CHAPTER 6
Motivation
CHAPTER 7
Trust, Justice, and Ethics
CHAPTER 8
Learning and Decision Making
INDIVIDUAL
MECHANISMS
2
P A R T
Final PDF to printer
coL27660_ch04_091-123.indd 92 10/11/17 08:41 AM
LEARNING GOALS
4
4.1 What is job satisfaction?
4.2 What are values, and how do they affect job satisfaction?
4.3 What specific facets do employees consider when evaluating their job satisfaction?
4.4 Which job characteristics can create a sense of satisfaction with the work itself?
4.5 How is job satisfaction affected by day-to-day events?
4.6 What are mood and emotions, and what specific forms do they take?
4.7 How does job satisfaction affect job performance and organizational commitment? How does it affect
life satisfaction?
4.8 What steps can organizations take to assess and manage job satisfaction?
After reading this chapter, you should be able to answer the following questions:
Job Satisfaction
INDIVIDUAL
OUTCOMES
INDIVIDUAL
MECHANISMS
INDIVIDUAL
CHARACTERISTICS
ORGANIZATIONAL
MECHANISMS
Organizational
Culture
Organizational
Structure
Teams:
Processes &
Communication
Motivation
Trust, Justice,
& Ethics
Teams:
Characteristics &
Diversity
Learning &
Decision Making
Ability
Personality &
Cultural Values
Stress
Leadership:
Power &
Negotiation
Job
Satisfaction
Leadership:
Styles &
Behaviors
Organizational
Commitment
Job
Performance
GROUP
MECHANISMS
Final PDF to printer
coL27660_ch04_091-123.indd 93 10/11/17 08:41 AM
C
an you guess the two best supermarkets in the
United States, in terms of customer service ratings
provided by the American Customer Satisfaction
Index? One is Trader Joe’s, the Monrovia, California-based
chain. But who’s the other? The answer is Publix—founded
in 1930 by George Jenkins in Winter Garden, Florida. How
does Publix provide such good customer service? One way
is by having happy employees. Jenkins had two goals in
founding the company: (1) to create the world’s best shop-
ping experience, and (2) to create the world’s best work-
place. Notes one store manager, “The reason Publix is
such a great place to work is that nothing has changed in
86 years.” Other employees obviously agree, as the com-
pany’s been named one of Fortune’s 100 Best Companies
to Work For every year since its inception.
What exactly makes Publix such a great place to work?
For one, the company promotes from within. There’s a for-
mal process for part-timers to go to full-time and for full-
timers to pursue a long-term career. Indeed, virtually all of
Publix’s management team started out in entry-level positions.
Of the 60,000 openings at the chain last year, over 26,000
were filled internally. And 30 percent of the rest were filled
using employee referrals. Says incoming CEO Todd Jones,
“You can do whatever you want in this company, including
becoming CEO.” Jones should know, given that he started
out bagging groceries at Publix 36 years ago.
The company also pays well, with above-market start-
ing salaries. Employees are eligible for raises after their first
six months and can gain stock in the company six months
later. Managers provide new hires with generous amounts
of feedback, including 30-day, 60-day, and 90-day “check-
in meetings.” The company also offers a tuition reimburse-
ment program to employees who work at least 10 hours
per week, paying up to $12,800 per employee. All these
reasons explain why so many employees “bleed green”—a
term used to capture the extreme satisfaction and loyalty
felt by the rank and file. It’s that satisfaction that employ-
ees are asked to channel into better customer service. In
fact, new hires are asked to memorize a slogan coined by
the founder: “Make every customer’s day a little bit better
because they met you.”
PUBLIX
©Peter Titmuss/Alamy
Final PDF to printer
94 C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 94 10/11/17 08:41 AM
J O B S AT I S FAC T I O N
This chapter takes us to a new portion of our integrative model of organizational behavior. Job
satisfaction is one of several individual mechanisms that directly affects job performance and
organizational commitment. If employees are very satisfied with their jobs and experience posi-
tive emotions while working, they may perform their jobs better and choose to remain with the
company for a longer period of time. Think about the worst job that you’ve held in your life, even
if it was just a summer job or a short-term work assignment. What did you feel during the course
of the day? How did those feelings influence the way you behaved, in terms of your time spent on
task and citizenship behaviors rather than counterproductive or withdrawal behaviors?
Job satisfaction is a pleasurable emotional state resulting from the appraisal of one’s job or
job experiences.1 In other words, it represents how you feel about your job and what you think
about your job. Employees with high job satisfaction experience positive feelings when they think
about their duties or take part in task activities. Employees with low job satisfaction experience
negative feelings when they think about their duties or take part in their task activities. Unfortu-
nately, workplace surveys suggest that satisfied employees are becoming more and more rare. For
example, one recent survey showed that just 45 percent of Americans were satisfied with their
jobs, down from 61 percent two decades ago.2 What explains the drop? The same survey revealed
declines in the percentage of employees who find their work interesting (51 percent), who are
satisfied with their boss (51 percent), and who like their coworkers (57 percent). Reversing such
trends requires a deeper understanding of exactly what drives job satisfaction levels.
W H Y A R E S O M E E M P LOY E E S M O R E
S AT I S F I E D T H A N OT H E R S ?
So what explains why some employees are more satisfied than others? At a general level, employees
are satisfied when their job provides the things that they value. Values are those things that people
consciously or subconsciously want to seek or attain.3 Think about this question for a few moments:
What do you want to attain from your job, that is, what things do you want your job to give you?
A good wage? A sense of achievement? Colleagues who are fun to be around? If you had to make
a list of the things you value with respect to your job, most or all of them would likely be shown in
Table 4-1. This table summarizes the content of popular surveys of work values, broken down into
more general categories.4 Many of those values deal with the things that your work can give you,
such as good pay or the chance for frequent promotions. Other values pertain to the context that sur-
rounds your work, including whether you have a good boss or good coworkers. Still other values deal
with the work itself, like whether your job tasks provide you with freedom or a sense of achievement.
Consider the list of values in Table 4-1. Which would make your “top five” in terms of impor-
tance right now, at this stage of your life? Maybe you have a part-time job during college and
you value enjoyable coworkers or a comfortable work environment above everything else. Or
maybe you’re getting established in your career and starting a family, which makes a high salary
and frequent promotions especially critical. Or perhaps you’re at a point in your career that you
feel a need to help others or find an outlet for your creative expression. (In our case, we value
fame, which is what led us to write this textbook. We’re still waiting for Fallon’s call—or at least
Kimmel’s). Regardless of your “top five,” you can see that different people value different things
and that your values may change during the course of your working life.
VA LU E F U L F I L L M E N T
Values play a key role in explaining job satisfaction. Value-percept theory argues that job satisfac-
tion depends on whether you perceive that your job supplies the things that you value.5 This theory
can be summarized with the following equation:
4.1
What is job performance?
4.2
What are values, and
how do they affect job
satisfaction?
Final PDF to printer
95C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 95 10/11/17 08:41 AM
Dissatisfaction = (Vwant – Vhave) × (Vimportance)
In this equation, Vwant reflects how much of a value an employee wants, Vhave indicates how
much of that value the job supplies, and Vimportance reflects how important the value is to the
employee. Big differences between wants and haves create a sense of dissatisfaction, especially
when the value in question is important. Note that the difference between Vwant and Vhave gets mul-
tiplied by importance, so existing discrepancies get magnified for important values and minimized
for trivial values. As an example, say that you were evaluating your pay satisfaction. You want to
be earning around $70,000 a year but are currently earning $50,000 a year, so there’s a $20,000
discrepancy. Does that mean you feel a great deal of pay dissatisfaction? Only if pay is one of the
most important values to you from Table 4-1. If pay isn’t that important, you probably don’t feel
much dissatisfaction.
Value-percept theory also suggests that people evaluate job satisfaction according to specific
“facets” of the job.6 After all, a “job” isn’t one thing—it’s a collection of tasks, relationships, and
rewards.7 The most common facets that employees consider in judging their job satisfaction appear
in Figure 4-1. The figure includes the “want vs. have” calculations that drive satisfaction with pay,
promotions, supervision, coworkers, and the work itself. The figure also shows how satisfaction with
4.3
What specific facets do
employees consider
when evaluating their job
satisfaction?
TABLE 4-1 Commonly Assessed Work Values
CATEGORIES SPECIFIC VALUES
Pay • High salary
• Secure salary
Promotions • Frequent promotions
• Promotions based on ability
Supervision • Good supervisory relations
• Praise for good work
Coworkers • Enjoyable coworkers
• Responsible coworkers
Work Itself • Utilization of ability
• Freedom and independence
• Intellectual stimulation
• Creative expression
• Sense of achievement
Altruism • Helping others
• Moral causes
Status • Prestige
• Power over others
• Fame
Environment • Comfort
• Safety
Key Question:
Which of these things are most important to you?
Sources: Adapted from R.V. Dawis, “Vocational Interests, Values, and Preferences,” in Handbook of Industrial and Orga-
nizational Psychology, Vol. 2, Ed. M.D. Dunnette and L.M. Hough (Palo Alto, CA: Consulting Psychologists Press, 1991),
pp. 834–71; and D.M. Cable and J.R. Edwards, “Complementary and Supplementary Fit: A Theoretical and Empirical
Investigation,” Journal of Applied Psychology 89 (2004), pp. 822–34.
Final PDF to printer
96 C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 96 10/11/17 08:41 AM
those five facets adds together to create “overall job satisfaction.” Figure 4-1 shows that employees
might be satisfied for all kinds of reasons. One person may be satisfied because she’s in a high-
paying job and working for a good boss. Another person may be satisfied because he has good
coworkers and enjoyable work tasks. You may have noticed that a few of the values in Table 4-1, such
as working for moral causes and gaining fame and prestige, are not represented in Figure 4-1. Those
values are missing because they’re not as relevant in all jobs, unlike pay, promotions, and so forth.
The first facet in Figure 4-1, pay satisfaction, refers to employees’ feelings about their pay,
including whether it’s as much as they deserve, secure, and adequate for both normal expenses
and luxury items.8 Similar to the other facets, pay satisfaction is based on a comparison of the
pay that employees want and the pay they receive.9 Although more money is almost always better,
most employees base their desired pay on a careful examination of their job duties and the pay
given to comparable colleagues.10 As a result, even nonmillionaires can be quite satisfied with
their pay (thankfully for most of us!). Take the employees at NuStar Energy, the San Antonio–
based asphalt refiner and operator of oil pipelines storage.11 The company pays more than the
industry average, with merit pay and equity grants for nonexecutives. And either everyone gets
a bonus or no one does. Those sorts of pay policies make it more bearable to stand next to hot
asphalt in a flame-retardant suit, hard hat, shatterproof glasses, and steel-toed boots!
The next facet in Figure 4-1, promotion satisfaction, refers to employees’ feelings about the com-
pany’s promotion policies and their execution, including whether promotions are frequent, fair, and
FIGURE 4-1 The Value-Percept Theory of Job Satisfaction
Pay
Satisfaction
Promotion
Satisfaction
Supervision
Satisfaction
Coworker
Satisfaction
Satisfaction
with the
Work Itself
(Promotionwant − Promotionhave)
× Promotionimportance
(Supervisionwant − Supervisionhave)
× Supervisionimportance
(Coworkerwant − Coworkerhave)
× Coworkerimportance
(Workwant − Workhave)
× Workimportance
(Paywant − Payhave)
× Payimportance
OVERALL
JOB
SATISFACTION
Final PDF to printer
97C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 97 10/11/17 08:41 AM
based on ability.12 Unlike pay, some employees may not want frequent promotions because promo-
tions bring more responsibility and increased work hours.13 However, many employees value promo-
tions because they provide opportunities for more personal growth, a better wage, and more prestige.
Nordstrom, the Seattle-based high-end retailer, does a good job fostering promotion satisfaction on
the part of its employees. New sales clerks are often promoted within a year, with potential lead-
ers put on the fast track with a six-month training program.14 Indeed, five of the nine members of
Nordstrom’s executive committee started off on the sales floor. “Leadership is grounded in experi-
ence,” notes one executive. “We want to make sure people get enough experiences to grow their career.”
Supervision satisfaction reflects employees’ feelings about their boss, including whether the
boss is competent, polite, and a good communicator (rather than lazy, annoying, and too dis-
tant).15 Most employees ask two questions about their supervisors: (1) “Can they help me attain
the things that I value?” and (2) “Are they generally likable?”16 The first question depends on
whether supervisors provide rewards for good performance, help employees obtain necessary
resources, and protect employees from unnecessary distractions. The second question depends on
whether supervisors have good personalities, as well as values and beliefs similar to the employ-
ees’ philosophies. General Mills, the Minneapolis–based manufacturer of food products, works
hard to foster a sense of supervision satisfaction. The company stresses leadership development
courses at its General Mills Institute and rotates employees across jobs to broaden the experi-
ences they bring to leadership roles.17 One manager describes the company’s culture this way,
“I’ve noticed a manager three roles ago is still putting in good words for me, and still checking up
on me. It’s something that’s common at General Mills, and something I’ve started to do as well.”
Coworker satisfaction refers to employees’ feelings about their fellow employees, including
whether coworkers are smart, responsible, helpful, fun, and interesting as opposed to lazy, gossipy,
unpleasant, and boring.18 Employees ask the same kinds of questions about their coworkers that they
do about their supervisors: (1) “Can they help me do my job?” and (2) “Do I enjoy being around
them?” The first question is critical because most of us rely, to some extent, on our coworkers when
performing job tasks. The second question also is important because we spend just as much time
with coworkers as we do with members of our own family. Coworkers who are pleasant and fun can
make the workweek go much faster, whereas coworkers who are disrespectful and annoying can
make even one day seem like an eternity. Perkins COIE, the Seattle–based law firm that represents
Starbucks, Google, Microsoft, and Intel, fosters coworker satisfaction in an unusual—and downright
sneaky—way. The firm encourages the creation of “happiness committees,” small groups within
each department that perform random acts of kindness, like leaving gifts at an employee’s work
station.19 The twist? The rosters of the happiness committees are kept secret from the rank-and-file.
The last facet in Figure 4-1, satisfaction with the work itself, reflects employees’ feelings about
their actual work tasks, including whether those tasks are challenging, interesting, respected, and
make use of key skills rather than being dull, repetitive, and uncomfortable.20 Whereas the previ-
ous four facets described the outcomes that result from work (pay, promotions) and the people
who surround work (supervisors, coworkers), this facet focuses on what employees actually do.
After all, even the best boss or most interesting coworkers can’t compensate for 40 or 50 hours
of complete boredom each week! How can employers instill a sense of satisfaction with the work
itself? One way is to emphasize the most challenging and interesting parts of the job. At Dream-
Works Animation, the Glendale, California–based studio, employees are encouraged to attend
“Life’s a Pitch” workshops that allow them to hone their presentation skills.21 The company also
helps employees flex their creative muscles by offering free drawing, sculpting, and improv classes.
The CEO, Jeffrey Katzenberg, notes, “Our philosophy is that if you love your work, and you love
coming to work, then the work will be exceptional.”
In summary, value-percept theory suggests that employees will be satisfied when they perceive
that their job offers the pay, promotions, supervision, coworkers, and work tasks that they value. Of
course, this theory begs the question: Which of those ingredients is most important? In other words,
which of the five facets in Figure 4-1 has the strongest influence on overall job satisfaction? Several
research studies have examined these issues and come up with the results shown in Figure 4-2. The
figure depicts the correlation between each of the five satisfaction facets and an overall index of
job satisfaction. (Recall that correlations of .10, .30, and .50 indicate weak, moderate, and strong
relationships, respectively.)
Final PDF to printer
98 C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 98 10/11/17 08:41 AM
FIGURE 4-2 Correlations between Satisfaction Facets and Overall Job Satisfaction
Sources: G.H. Ironson, P.C. Smith, M.T. Brannick, W.M. Gibson, and K.B. Paul, “Construction of a Job in General Scale:
A Comparison of Global, Composite, and Specific Measures,” Journal of Applied Psychology 74 (1989), pp. 193–200; and
S.S. Russell, C. Spitzmuller, L.F. Lin, J.M. Stanton, P.C. Smith, and G.H. Ironson, “Shorter Can Also Be Better: The
Abridged Job in General Scale,” Educational and Psychological Measurement 64 (2004), pp. 878–93.
Correlation with
Overall Job
Satisfaction
.00
.10
.20
.30
.40
.50
.60
.70
.80
Pay Promotion Supervision Coworker Work Itself
Specific Facets of Job Satisfaction
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
Figure 4-2 suggests that satisfaction with the work itself is the single strongest driver of overall
job satisfaction.22 Supervision and coworker satisfaction are also strong drivers, and promotion
and pay satisfaction have moderately strong effects. Why is satisfaction with the work itself so
critical? Well, consider that a typical workweek contains around 2,400 minutes. How much of
that time is spent thinking about how much money you make? 10 minutes? Maybe 20? The same
is true for promotions—we may want them, but we don’t necessarily spend hours a day thinking
about them. We do spend a significant chunk of that time with other people though. Between
lunches, meetings, hallway chats, and other conversations, we might easily spend 600 minutes a
week with supervisors and coworkers. That leaves almost 1,800 minutes for just us and our work.
As a result, it’s hard to be satisfied with your job if you don’t like what you actually do. For a pic-
ture of one bus driver’s job satisfaction, see our OB on Screen feature.
SAT I S FAC T I O N W I T H T H E WO R K I TS E L F
Given how critical enjoyable work tasks are to overall job satisfaction, it’s worth spending more
time describing the kinds of tasks that most people find enjoyable. Researchers began focusing
on this question in the 1950s and 1960s, partly in reaction to practices based in the “scientific
management” perspective. Scientific management focuses on increasing the efficiency of job tasks
by making them more simplified and specialized and using time and motion studies to plan task
Final PDF to printer
99C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 99 10/11/17 08:41 AM
OB ON SCREEN
PATERSON
Awesome . . . a bus driver that likes Emily Dickinson.
With those words, a little girl summarizes the titular figure in Paterson (Dir. Jim Jarmusch,
Amazon Studios). You see, Paterson (Adam Driver) works as a city bus driver in Paterson, New Jer-
sey (yes, he has the same name as the town). Every day, Paterson follows the same routine. He wakes
up next to his wife, Laura, goes to work, drives his route, comes home, has dinner, takes his bulldog
Marvin for a walk, and has a beer at the local watering hole. When Laura (Golshifteh Farahani)
asks how his day was one afternoon, Paterson politely responds, “Oh . . . the usual.”
We might expect Paterson to have low job satisfaction. He’s not paid all that well, as saving
up for Laura’s guitar stretches their budget. His job doesn’t afford that much status, except to
children in the town who view bus drivers with reverence. And his most oft-encountered coworker
mostly just complains about whatever’s going on in his life. And yet, Paterson seems quite
content—both during and after work. The nature of his job—and his work environment—gives him
ample opportunities to pursue poetry. He can draw inspiration from those around him, ruminate
on verses, and record them in his notebook during breaks by the waterfall.
Paterson’s contentment illustrates two things about job satisfaction (and happiness, in gen-
eral). First, as value-percept theory illustrates, lacking things is only dissatisfying when those
things are valued by the employee. Second, employees can compensate for any limitations of their
jobs by deriving satisfaction from hobbies and side pursuits. Paterson clearly derives satisfaction
from the fact that his poetry provides him with intellectual stimulation, utilization of ability, and
creative expression. As a friendly stranger tells Paterson, “Sometimes an empty page presents
more possibilities.”
©Moviestore collection Ltd/Alamy
movements and sequences carefully.23 The hope was that such steps would increase worker pro-
ductivity and reduce the breadth of skills required to complete a job, ultimately improving orga-
nizational profitability. Instead, the simplified and routine jobs tended to lower job satisfaction
while increasing absenteeism and turnover.24 Put simply: Boring jobs may be easier, but they’re
not necessarily better.
Final PDF to printer
100 C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 100 10/11/17 08:41 AM
So what kinds of work tasks are especially satisfying? Research suggests that three “critical
psychological states” make work satisfying. The first psychological state is believing in the mean-
ingfulness of work, which reflects the degree to which work tasks are viewed as something that
“counts” in the employee’s system of philosophies and beliefs (see Chapter 6 on motivation for
more discussion of such issues).25 Trivial tasks tend to be less satisfying than tasks that make
employees feel like they’re aiding the organization or society in some meaningful way. For more
on meaningfulness, see our OB at the Bookstore feature. The second psychological state is perceiv-
ing responsibility for outcomes, which captures the degree to which employees feel that they’re
key drivers of the quality of the unit’s work.26 Sometimes employees feel like their efforts don’t
really matter because work outcomes are dictated by effective procedures, efficient technologies,
or more influential colleagues. Finally, the third psychological state is knowledge of results, which
reflects the extent to which employees know how well (or how poorly) they’re doing.27 Many
employees work in jobs in which they never find out about their mistakes or notice times when
they did particularly well.
Think about times when you felt especially proud of a job well done. At that moment, you
were probably experiencing all three psychological states. You were aware of the result (after
all, some job had been done well). You felt you were somehow responsible for that result (oth-
erwise, why would you feel proud?). Finally, you felt that the result of the work was somehow
meaningful (otherwise, why would you have remembered it just now?). The next obvious question
then becomes, “What kinds of tasks create these psychological states?” Job characteristics theory,
which describes the central characteristics of intrinsically satisfying jobs, attempts to answer this
question. As shown in Figure 4-3, job characteristics theory argues that five core job character-
istics (variety, identity, significance, autonomy, and feedback, which you can remember with the
acronym “VISAF”) result in high levels of the three psychological states, making work tasks more
satisfying.28
The first core job characteristic in Figure 4-3, variety, is the degree to which the job requires
a number of different activities that involve a number of different skills and talents.29 When vari-
ety is high, almost every workday is different in some way, and job holders rarely feel a sense of
monotony or repetition.30 Of course, we could picture jobs that have a variety of boring tasks, such
as screwing different sized nuts onto different colored bolts, but such jobs do not involve a number
of different skills and talents.31
Evidence indicates that our preference for variety is hardwired into our brains. Research in
psychiatry and neuroscience shows that the brain releases a chemical called dopamine whenever a
novel stimulus (a new painting, a new meal, a new work challenge) is experienced, and we tend to
find this dopamine release quite pleasurable. Unfortunately, the amount of dopamine present in
our brains declines over our life spans. One neuroscientist therefore suggests that the best way to
protect our dopamine system is through novel, challenging experiences, writing, “The sense of sat-
isfaction after you’ve successfully handled unexpected tasks or sought out unfamiliar, physically
and emotionally demanding activities is your brain’s signal that you’re doing what nature designed
you to do.”32 Something to think about the next time you plan to order the same old thing at your
favorite restaurant!
4.4
Which job characteristics
can create a sense of satis-
faction with the work itself?
Employees at DreamWorks
Animation can express
their creativity at work in a
number of ways, including
free drawing, sculpting,
and improv classes, and
courses on honing
their pitching and
presentation skills.
©Paul Sakuma/AP Images
Final PDF to printer
101C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 101 10/11/17 08:41 AM
The second core job characteristic in Figure 4-3, identity, is the degree to which the job requires
completing a whole, identifiable, piece of work from beginning to end with a visible outcome.33
When a job has high identity, employees can point to something and say, “There, I did that.” The
transformation from inputs to finished product is very visible, and the employee feels a distinct
sense of beginning and closure.34 Think about how you feel when you work for a while on some
project but don’t quite get it finished—does that lack of closure bug you? If so, identity is an impor-
tant concern for you.
Significance is the degree to which the job has a substantial impact on the lives of other people,
particularly people in the world at large.35 Virtually any job can be important if it helps put food
on the table for a family, send kids to college, or make employees feel like they’re doing their part
for the working world. That said, significance as a core job characteristic captures something
beyond that—the belief that this job really matters. When employees feel that their jobs are signifi-
cant, they can see that others value what they do and they’re aware that their job has a positive
impact on the people around them.36 There’s the sense that, if their job was taken away, society
would be the worse for it.
OB AT THE BOOKSTORE
THE POWER OF MEANING
by Emily Esfahani Smith (New York, NY: Crown, 2017).
And yet, there is a major problem with the happiness frenzy: it has failed to deliver on its promise.
Though the happiness industry continues to grow, as a society, we’re more miserable than ever. Indeed,
social scientists have uncovered a sad irony—chasing happiness actually makes people unhappy.
With those words, Smith contrasts her book with the bevy of
titles focused on living a satisfying life. Rather than focusing on hap-
piness as an end in itself, Smith focuses on happiness as a byproduct
of something else: meaning. Her background makes her uniquely
qualified to write a book like this, with a bachelors in philosophy
and a masters in positive psychology—the area of psychology dedi-
cated to understanding human flourishing.
It turns out that the debate between happiness and meaning goes
all the way back to classic literature and philosophy. For example,
Aristotle distinguished between hedonia (feeling good) and eudai-
monia (being and doing good). Today, psychologists study how the
pursuit of happiness differs from the pursuit of meaning. For exam-
ple, Smith reviews one study that instructed college students to
either do things that made them happy (e.g., playing games, going
shopping, eating sweets) or that added meaning (e.g., forgiving a
friend, helping others, reflecting on core values). Although the happiness activities boosted mood
in the short term, the positive effects of the meaning activities lasted for months.
How can we add more meaning to our lives? Smith reviews four “pillars of meaning.” Under-
scoring the importance of significance, the work itself, and altruism, one of those pillars is pur-
pose. Pointing in part to the value of coworkers, another pillar is belongingness. As Smith notes,
both pillars echo writings by the philosopher John Stuart Mill. “Those only are happy,” Mill
wrote, “who have their minds fixed on some object other than their own happiness; on the hap-
piness of others, on the improvement of mankind, even on some art or pursuit, followed not as a
means, but as itself an ideal end. Aiming thus at something else, they find happiness by the way.”
©Roberts Publishing Services
Final PDF to printer
102 C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 102 10/11/17 08:41 AM
Autonomy is the degree to which the job provides freedom, independence, and discretion to the
individual performing the work.37 When your job provides autonomy, you view the outcomes of
it as the product of your efforts rather than the result of careful instructions from your boss or a
well-written manual of procedures.38 Autonomy comes in multiple forms, including the freedom
to control the timing, scheduling, and sequencing of work activities, as well as the procedures and
methods used to complete work tasks.39 To many of us, high levels of autonomy are the difference
between “having a long leash” and being “micromanaged.”
The last core job characteristic in Figure 4-3, feedback, is the degree to which carrying out the
activities required by the job provides employees with clear information about how well they’re
performing.40 A critical distinction must be noted: This core characteristic reflects feedback
obtained directly from the job as opposed to feedback from coworkers or supervisors. Most employ-
ees receive formal performance appraisals from their bosses, but that feedback occurs once or
maybe twice a year. When the job provides its own feedback, that feedback can be experienced
almost every day.
The passages in this section illustrate the potential importance of each of the five core charac-
teristics. But how important are the core characteristics to satisfaction with the work itself? Meta-
analyses of around 200 different research studies employing around 90,000 total participants
FIGURE 4-3 Job Characteristics Theory
Satisfaction
with the
Work Itself
Identity
I
Variety
V
Significance
S
Autonomy
A
Feedback
F
Knowledge
and Skill
Growth Need
Strength
Meaningfulness
of Work
Responsibility
for Outcomes
Knowledge
of Results
Final PDF to printer
103C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 103 10/11/17 08:41 AM
showed that the five core job characteristics are moderately to strongly related to work satisfac-
tion.41 However, those results don’t mean that every employee wants more variety, more autonomy,
and so forth. The bottom of Figure 4-3 includes two other variables: knowledge and skill and
growth need strength (which captures whether employees have strong needs for personal accom-
plishment or developing themselves beyond where they currently are).42 In the jargon of theory
diagrams, these variables are called “moderators.” Rather than directly affecting other variables in
the diagram, moderators influence the strength of the relationships between variables. If employ-
ees lack the required knowledge and skill or lack a desire for growth and development, more vari-
ety and autonomy should not increase their satisfaction very much.43 However, when employees
are very talented and feel a strong need for growth, the core job characteristics become even more
powerful. A graphical depiction of this moderator effect appears in Figure 4-4, where you can see
that the relationship between the core job characteristics and satisfaction becomes stronger when
growth need strength increases.
Given how critical the five core job characteristics are to job satisfaction, many organiza-
tions have employed job characteristics theory to help improve satisfaction among their employ-
ees. The first step in this process is assessing the current level of the characteristics to arrive
at a “satisfaction potential score.” See our OB Assessments feature for more about that step.
The organization, together with job design consultants, then attempts to redesign aspects of
the job to increase the core job characteristic levels. Often this step results in job enrichment,
such that the duties and responsibilities associated with a job are expanded to provide more
variety, identity, autonomy, and so forth. Research suggests that such enrichment efforts can
indeed boost job satisfaction levels.44 Moreover, enrichment efforts can heighten work accu-
racy and customer satisfaction, though training and labor costs tend to rise as a result of such
changes.45 However, employees needn’t necessarily wait for enrichment efforts to improve levels
of the core job characteristics. Many employees can engage in job crafting, where they shape,
mold, and redefine their jobs in a proactive way.46 For example, they might alter the boundaries
of their jobs by switching certain tasks, they might change specific collaborative relationships,
or they might reenvison how they view their work, relative to the broader context of the organi-
zation’s mission.
4.5
How is job satisfaction
affected by day-to-day
events?
Despite the need for
discipline and practice, the
job of a jazz musician is
one with a high degree of
autonomy.
©Nick White/Getty Images
Final PDF to printer
104 C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 104 10/11/17 08:41 AM
FIGURE 4-4 Growth Need Strength as a Moderator of Job Characteristic Effects
Source: Adapted from B.T. Loher, R.A. Noe, N.L. Moeller, and M.P. Fitzgerald, “A Meta-Analysis of the Relation of Job
Characteristics to Job Satisfaction,” Journal of Applied Psychology 70 (1985), pp. 280–89.
Satisfaction
with the
Work Itself
Levels of the Five Core Job Characteristics
Low High
High Growth Need Strength
Low Growth Need Strength
M O O D A N D E M OT I O N S
Let’s say you’re a satisfied employee, maybe because you get paid well and work for a good boss
or because your work tasks provide you with variety and autonomy. Does this mean you’ll defi-
nitely be satisfied at 11:00 a.m. next Tuesday? Or 2:30 p.m. the following Thursday? Obviously it
doesn’t. Each employee’s satisfaction levels fluctuate over time, rising and falling like some sort of
emotional stock market. This fluctuation might seem strange, given that people’s pay, supervisors,
coworkers, and work tasks don’t change from one hour to the next. The key lies in remembering
that job satisfaction reflects what you think and feel about your job. So part of it is rational, based
on a careful appraisal of the job and the things it supplies. But another part of it is emotional,
based on what you feel “in your gut” while you’re at work or thinking about work. So satisfied
employees feel good about their job on average, but things happen during the course of the day to
make them feel better at some times (and worse at others).
Figure 4-5 illustrates the satisfaction levels for one employee during the course of a workday,
from around 9:00 a.m. to 5:00 p.m. You can see that this employee did a number of different
things during the day, from answering e-mails to eating lunch with friends to participating in a
brainstorming meeting regarding a new project. You can also see that the employee came into the
day feeling relatively satisfied, though satisfaction levels had several ebbs and flows during the
next eight hours. What’s responsible for those ebbs and flows in satisfaction levels? Two related
concepts: mood and emotions.
What kind of mood are you in right now? Good? Bad? Somewhere in between? Why are you in
that kind of mood? Do you really even know? (If it’s a bad mood, we hope it has nothing to do with
this book!) Moods are states of feeling that are often mild in intensity, last for an extended period
of time, and are not explicitly directed at or caused by anything.47 When people are in a good or
bad mood, they don’t always know who (or what) deserves the credit or blame; they just happen
to be feeling that way for a stretch of their day. Of course, it would be oversimplifying things to call
all moods either good or bad. Sometimes we’re in a serene mood; sometimes we’re in an enthusias-
tic mood. Both are “good” but obviously feel quite different. Similarly, sometimes we’re in a bored
mood; sometimes we’re in a hostile mood. Both are “bad” but, again, feel quite different.
4.6
What are mood and emo-
tions, and what specific
forms do they take?
Final PDF to printer
105C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 105 10/11/17 08:41 AM
OB ASSESSMENTS
CORE JOB CHARACTERISTICS
How satisfying are your work tasks? This assessment is designed to measure the five core job
characteristics. Think of your current job or the last job that you held (even if it was a part-time or
summer job). Answer each question using the response scale provided. Then use the formula to
compute a satisfaction potential score (SPS). (Instructors: Assessments on growth need strength,
emotional labor, flow, and positive emotionality can be found in the PowerPoints in the Connect
Library’s Instructor Resources and in the Connect assignments for this chapter.)
1
VERY
INACCURATE
2
MOSTLY
INACCURATE
3
SLIGHTLY
INACCURATE
4
UNCERTAIN
5
SLIGHTLY
ACCURATE
6
MOSTLY
ACCURATE
7
VERY
ACCURATE
V1. The job causes me to draw on a number of different skills. _______
V2. The job has a diverse set of tasks associated with it. _______
I1. The job allows me to both start and finish something. _______
I2. I can see the end product of my work in this job. _______
S1. The job affects a lot of people, even beyond my organization. _______
S2. The job itself is significant in a societal sense. _______
A1. I can use my own judgment in how I carry out the job. _______
A2. The job gives me a lot of freedom and discretion. _______
F1. The mere act of doing the job shows me how well I’m doing. _______
F2. It’s easy to know how well I’m doing, just from performing the job. _______
SPS
V1+V2+I1+I2+S1+S2
6
A1+A2 F1+F2
2
= × ×
2
SPS = ××
6 2 2
SPS = × =×
Sources: J.R. Hackman and G.R. Oldham, The Job Diagnostic Survey: An Instrument for the Diagnosis of Jobs and
the Evaluation of Job Redesign Projects (New Haven, CT: Yale University, 1974); and J.R. Idaszak and F. Drasgow,
“A Revision of the Job Diagnostic Survey: Elimination of a Measurement Artifact,” Journal of Applied Psychology 72
(1987), pp. 69–74.
SCORING AND INTERPRETATION
If your score is 150 or above, your work tasks tend to be satisfying and enjoyable. If your score
is less than 150, you might benefit from trying to “craft” your job by taking on more challenging
assignments and collaborations, or reenvisioning the way your job fits into the organization’s
mission.
Final PDF to printer
106 C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 106 10/11/17 08:41 AM
It turns out that there are a number of different moods that we might experience during the
workday. Figure 4-6 summarizes the different moods in which people sometimes find themselves.
The figure illustrates that moods can be categorized in two ways: pleasantness and activation. First,
the horizontal axis of the figure reflects whether you feel pleasant (in a “good mood”) or unpleas-
ant (in a “bad mood”).48 The figure uses green colors to illustrate pleasant moods and red colors to
illustrate unpleasant moods. Second, the vertical axis of the figure reflects whether you feel activated
and aroused or deactivated and unaroused.49 The figure uses darker colors to convey higher levels
of activation and lighter colors to convey lower levels. Note that some moods are neither good nor
bad. For example, being surprised or astonished (high activation) and quiet or still (low activation)
are neither pleasant nor unpleasant. As a result, those latter moods are left colorless in Figure 4-6.
Figure 4-6 illustrates that the most intense positive mood is characterized by feeling enthusi-
astic, excited, and elated. When employees feel this way, coworkers are likely to remark, “Wow,
you’re sure in a good mood!” In contrast, the most intense negative mood is characterized by feel-
ing hostile, nervous, and annoyed. This kind of mood often triggers the question, “Wow, what’s
gotten you in such a bad mood?” If we return to our chart of hour-by-hour job satisfaction in
Figure 4-5, what kind of mood do you think the employee was in while answering e-mails? Prob-
ably a happy, cheerful, and pleased mood. What kind of mood was the employee in during the
informal meeting on the long-running project? Probably a grouchy, sad, and blue mood. Finally,
what kind of mood do you think the employee was in during the brainstorming meeting for the
FIGURE 4-5 Hour-by-Hour Fluctuations in Job Satisfaction during the Workday
Funny
conversation
with friend
Read
annoying
e-mail from
boss Left lunch
to return
to work
Realizes
how interesting
and challenging
new project
will be
Phone call
saying
paperwork
is overdue
D
is
sa
tis
fie
d
S
a
tis
fie
d
H
o
u
r-
b
y-
H
o
u
r
S
a
ti
sf
a
ct
io
n
L
e
ve
l
N
e
u
tr
a
l
Answering
e-mails
Informal meeting
on long-running
project
Preparation
and research
for new
project
Brainstorming
meeting for new
project
Eating lunch
with three
friends
Completing
paperwork
and filing
10:00 11:00 12:00 1:00 2:00 3:00 4:00 5:009:00
Final PDF to printer
107C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 107 10/11/17 08:41 AM
new project? Clearly, an enthusiastic, excited, and elated mood. This employee would report espe-
cially high levels of job satisfaction at this point in time.
Some organizations take creative steps to foster positive moods among their employees. For
example, Quicken Loans, the Detroit–based online lender, provides Razor scooters to help team
members go from place to place inside their headquarters.50 Many of those places are adorned
with scratch-and-sniff wallpaper and graffiti created by local artists. Or consider these offerings by
Booz Allen Hamilton, the McLean, Virginia–based consulting firm. Employees can participate in
ice cream socials, pet photo contests, and hula lessons.51 Such perks may not rival the importance
of pay, promotions, supervision, coworkers, and the work itself as far as job satisfaction is con-
cerned, but they can help boost employees’ moods during a particular workday.
Although novel and unusual perks can be valuable, the most intense forms of positive mood
often come directly from work activities, like the brainstorming project in Figure 4-5. Research
suggests that two conditions are critical to triggering intense positive mood. First, the activity
in question has to be challenging. Second, the employee must possess the unique skills needed
to meet that challenge. That high challenge–high skill combination can result in flow—a state
in which employees feel a total immersion in the task at hand, sometimes losing track of how
much time has passed.52 People often describe flow as being “in the zone” and report heightened
states of clarity, control, and concentration, along with a sense of enjoyment, interest, and loss of
self-consciousness.53 Although you may have experienced flow during leisure activities, such as
FIGURE 4-6 Different Kinds of Mood
Sources: Adapted from D. Watson and A. Tellegen, “Toward a Consensual Structure of Mood,” Psychological Bulletin 98
(1985), pp. 219–35; J.A. Russell, “A Circumplex Model of Affect,” Journal of Personality and Social Psychology 39 (1980),
pp. 1161–78; and R.J. Larsen and E. Diener, “Promises and Problems with the Circumplex Model of Emotion,” in Review
of Personality and Social Psychology: Emotion, Vol. 13, ed. M.S. Clark (Newbury Park, CA: Sage, 1992), pp. 25–59.
Intense
Positive
Mood
Activated
Deactivated
Pleasant Unpleasant
Surprised
Astonished
Aroused
Quiet
Still
Inactive
Happy
Cheerful
Pleased
Grouchy
Sad
Blue
Hostile
Nervous
Annoyed
Enthusiastic
Excited
Elated
Bored
Sluggish
Drowsy
Serene
Calm
Content
Intense
Negative
Mood
Final PDF to printer
108 C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 108 10/11/17 08:41 AM
playing sports or making music, research suggests that we experience flow more often in our work-
ing lives. Much of our leisure time is spent in passive recreation, such as watching TV or chatting
with friends, that lacks the challenge needed to trigger flow states. Work tasks, in contrast, may
supply the sorts of challenges that require concentration and immersion—particularly when those
tasks contain high levels of variety, significance, autonomy, and so forth (see Chapter 6 on motiva-
tion for more discussion of such issues).
Returning to Figure 4-5, it’s clear that specific events triggered variations in satisfaction levels.
According to affective events theory, workplace events can generate affective reactions—reactions that
then can go on to influence work attitudes and behaviors.54 Workplace events include happenings,
like an annoying e-mail from a boss or a funny conversation with a friend, that are relevant to an
employee’s general desires and concerns. These events can trigger emotions, which are states of feel-
ing that are often intense, last for only a few minutes, and are clearly directed at (and caused by)
someone or some circumstance. The difference between moods and emotions becomes clear in the
way we describe them to others. We describe moods by saying, “I’m feeling grouchy,” but we describe
emotions by saying, “I’m feeling angry at my boss.”55 According to affective events theory, these emo-
tions can create the ebb and flow in satisfaction levels in Figure 4-5 and can also trigger spontaneous
behaviors.56 For example, positive emotions may trigger spontaneous instances of citizenship behav-
ior, whereas negative emotions may trigger spontaneous instances of counterproductive behavior.
As with mood, it’s possible to differentiate between specific examples of positive and nega-
tive emotions. Table 4-2 provides a summary of many of the most important.57 Positive emotions
include joy, pride, relief, hope, love, and compassion. Negative emotions include anger, anxiety,
fear, guilt, shame, sadness, envy, and disgust. What emotion do you think the employee experi-
enced in Figure 4-5 when reading a disrespectful e-mail from the boss? Probably anger. What
emotion do you think that same employee enjoyed during a funny conversation with a friend?
Possibly joy, or maybe relief that lunch had arrived and a somewhat bad day was halfway over.
Leaving lunch to return to work might have triggered either anxiety (because the bad day might
resume) or sadness (because the fun time with friends had ended). Luckily, the employee’s sense
of joy at taking on a new project that was interesting and challenging was right around the
TABLE 4-2 Different Kinds of Emotions
POSITIVE EMOTIONS DESCRIPTION
Joy A feeling of great pleasure
Pride Enhancement of identity by taking credit for achievement
Relief A distressing condition has changed for the better
Hope Fearing the worst but wanting better
Love Desiring or participating in affection
Compassion Being moved by another’s situation
NEGATIVE EMOTIONS
Anger A demeaning offense against me and mine
Anxiety Facing an uncertain or vague threat
Fear Facing an immediate and concrete danger
Guilt Having broken a moral code
Shame Failing to live up to your ideal self
Sadness Having experienced an irreversible loss
Envy Wanting what someone else has
Disgust Revulsion aroused by something offensive
Source: Adapted from R.S. Lazarus, Emotion and Adaptation (New York: Oxford University, 1991).
Final PDF to printer
109C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 109 10/11/17 08:41 AM
corner. The day did end on a down note, however, as the phone call signaling overdue paperwork
was likely met with some mix of anger, fear, guilt, or even disgust (no one likes paperwork!).
Of course, just because employees feel many of the emotions in Table 4-2 during the workday
doesn’t mean they’re supposed to show those emotions. Some jobs demand that employees live
up to the adage “never let ’em see you sweat.” In particular, service jobs in which employees make
direct contact with customers often require those employees to hide any anger, anxiety, sadness,
or disgust that they may feel, suppressing the urge to spontaneously engage in some negative
behavior. Such jobs are high in what’s called emotional labor, or the need to manage emotions to
complete job duties successfully.58 Flight attendants are trained to “put on a happy face” in front
of passengers, retail salespeople are trained to suppress any annoyance with customers, and res-
taurant servers are trained to act like they’re having fun on their job even when they’re not.
Is it a good idea to require emotional labor on the part of employees? Research on emotional
contagion shows that one person can “catch” or “be infected by” the emotions of another per-
son.59 If a customer service representative is angry or sad, those negative emotions can be trans-
ferred to a customer (like a cold or disease). If that transfer occurs, it becomes less likely that
customers will view the experience favorably and spend money, which potentially harms the bot-
tom line. From this perspective, emotional labor seems like a vital part of good customer service.
Unfortunately, other evidence suggests that emotional labor places great strain on employees and
that their “bottled up” emotions may end up bubbling over, sometimes resulting in angry outbursts
against customers or emotional exhaustion and burnout on the part of employees (see Chapter 5
on stress for more discussion of such issues).60
S U M M A RY: W H Y A R E S O M E E M P LOY E E S M O R E SAT I S F I E D
T H A N OT H E R S ?
So what explains why some employees are more satisfied than others? As we show in Figure 4-7,
answering that question requires paying attention to the more rational appraisals people make about
their job and the things it supplies for them, such as pay, promotions, supervision, coworkers, and the
work itself. Satisfaction with the work itself, in turn, is affected by the five core job characteristics:
variety, identity, significance, autonomy, and feedback. However, answering that question also requires
paying attention to daily fluctuations in how people feel, in terms of their positive and negative moods
and positive and negative emotions. In this way, a generally satisfied employee may act unhappy at
a given moment, just as a generally dissatisfied employee may act happy at a given moment. Under-
standing those sorts of fluctuations can help managers separate long-term problems (boring tasks,
incompetent coworkers) from more short-lived issues (a bad meeting, an annoying interaction).
H O W I M P O R TA N T I S J O B S AT I S FAC T I O N ?
Several factors influence an employee’s job satisfaction, from pay to coworkers to job tasks to
day-to-day moods and emotions. Of course, the most obvious remaining question is, “Does job sat-
isfaction really matter?” More precisely, does job satisfaction have a significant impact on job per-
formance and organizational commitment—the two primary outcomes in our integrative model
of OB? Figure 4-8 summarizes the research evidence linking job satisfaction to job performance
and organizational commitment. This same sort of figure will appear in each of the remaining
chapters of this book, so that you can get a better feel for which of the concepts in our integrative
model has the strongest impact on performance and commitment.
Figure 4-8 reveals that job satisfaction does predict job performance. Why? One reason is that job
satisfaction is moderately correlated with task performance. Satisfied employees do a better job of
fulfilling the duties described in their job descriptions,61 and evidence suggests that positive feelings
foster creativity,62 improve problem solving and decision making,63 and enhance memory and recall
of certain kinds of information.64 Positive feelings also improve task persistence and attract more
help and support from colleagues.65 Apart from these sorts of findings, the benefits of job satisfac-
tion for task performance might best be explained on an hour-by-hour basis. At any given moment,
Final PDF to printer
110 C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 110 10/11/17 08:41 AM
employees wage a war between paying attention to a given work task and attending to “off-task”
things, such as stray thoughts, distractions, interruptions, and so forth. Positive feelings when work-
ing on job tasks can pull attention away from those distractions and channel people’s attention to
task accomplishment.66 When such concentration occurs, an employee is more focused on work at a
given point in time. Of course, the relationship between satisfaction and task performance can work
in reverse to some extent, such that people tend to enjoy jobs that they can perform more success-
fully.67 Meta-analyses tend to be less supportive of this causal direction, however.68
Job satisfaction also is correlated moderately with citizenship behavior. Satisfied employees
engage in more frequent “extra mile” behaviors to help their coworkers and their organization.69
Positive feelings increase their desire to interact with others and often result in spontaneous acts
of helping and other instances of good citizenship.70 In addition, job satisfaction has a moderate
negative correlation with counterproductive behavior. Satisfied employees engage in fewer inten-
tionally destructive actions that could harm their workplace.71 Events that trigger negative emo-
tions can prompt employees to “lash out” against the organization by engaging in rule breaking,
FIGURE 4-7 Why Are Some Employees More Satisfied Than Others?
Satisfaction
with the
Work Itself
Pay
Satisfaction
Promotion
Satisfaction
Supervision
Satisfaction
Coworker
Satisfaction
D
A
IL
Y
F
LU
C
T
U
A
T
IO
N
S
IN
F
E
E
LI
N
G
S
R
A
T
IO
N
A
L
A
P
P
R
A
IS
A
L
O
F
J
O
B
Positive
Mood
Negative
Mood
Positive
Emotions
Negative
Emotions
Identity
I
Variety
V
Signific-
ance
S
Autonomy
A
Feedback
F
OVERALL
JOB
SATISFACTION
Final PDF to printer
111C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 111 10/11/17 08:41 AM
theft, sabotage, or other retaliatory behaviors.72 The more satisfied employees are, the less likely
they’ll feel those sorts of temptations.
Figure 4-8 also reveals that job satisfaction influences organizational commitment. Why? Job
satisfaction is strongly correlated with affective commitment, so satisfied employees are more
likely to want to stay with the organization.73 After all, why would employees want to leave a place
where they’re happy? Another reason is that job satisfaction is strongly correlated with normative
commitment. Satisfied employees are more likely to feel an obligation to remain with their firm74
and a need to “repay” the organization for whatever it is that makes them so satisfied, whether
good pay, interesting job tasks, or effective supervision. However, job satisfaction is uncorrelated
with continuance commitment, because satisfaction does not create a cost-based need to remain
with the organization. Taken together, these commitment effects become more apparent when
you consider the kinds of employees who withdraw from the organization. In many cases, dis-
satisfied employees are the ones who sit daydreaming at their desks, come in late, are frequently
absent, and eventually decide to quit their jobs.
L I F E SAT I S FAC T I O N
Of course, job satisfaction is important for other reasons as well—reasons that have little to do
with job performance or organizational commitment. For example, job satisfaction is strongly
related to life satisfaction, or the degree to which employees feel a sense of happiness with their
lives. Research shows that job satisfaction is one of the strongest predictors of life satisfaction.
4.7
How does job satisfaction
affect job performance and
organizational commit-
ment? How does it affect
life satisfaction?
FIGURE 4-8 Effects of Job Satisfaction on Performance and Commitment
Sources: A. Cooper-Hakim and C. Viswesvaran, “The Construct of Work Commitment: Testing an Integrative Framework,”
Psychological Bulletin 131 (2005), pp. 241–59; R.S. Dalal, “A Meta-Analysis of the Relationship between Organizational Citizen-
ship Behavior and Counterproductive Work Behavior,” Journal of Applied Psychology 90 (2005), pp. 1241–55; D.A. Harrison,
D.A. Newman, and P.L. Roth, “How Important Are Job Attitudes? Meta-Analytic Comparisons of Integrative Behavioral Out-
comes and Time Sequences,” Academy of Management Journal 49 (2006), pp. 305–25; T.A. Judge, C.J. Thoreson, J.E. Bono,
and G.K. Patton, “The Job Satisfaction–Job Performance Relationship: A Qualitative and Quantitative Review,” Psychological
Bulletin 127 (2001), pp. 376–407; J.A. LePine, A. Erez, and D.E. Johnson, “The Nature and Dimensionality of Organizational
Citizenship Behavior: A Critical Review and Meta-Analysis,” Journal of Applied Psychology 87 (2002), pp. 52–65; and J.P.
Meyer, D.J. Stanley, L. Herscovitch, and L. Topolnytsky, “Affective, Continuance, and Normative Commitment to the Organi-
zation: A Meta-Analysis of Antecedents, Correlates, and Consequences,” Journal of Vocational Behavior 61 (2002), pp. 20–52.
Job Satisfaction has a moderate positive e�ect on Job Performance. People who experience
higher levels of job satisfaction tend to have higher levels of Task Performance, higher levels of
Citizenship Behavior, and lower levels of Counterproductive Behavior.
Job Satisfaction has a strong positive e�ect on Organizational Commitment. People who
experience higher levels of job satisfaction tend to feel higher levels of A�ective Commitment
and higher levels of Normative Commitment. E�ects on Continuance Commitment are weaker.
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
Job
Satisfaction
Job
Performance
Job
Satisfaction
Organizational
Commitment
Final PDF to printer
112 C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 112 10/11/17 08:41 AM
Put simply, people feel better about their lives when they feel better about their jobs.75 This link
makes sense when you realize how much of our identity is wrapped up in our jobs. What’s the first
question that people ask one another after being introduced? That’s right—“What do you do?” If
you feel bad about your answer to that question, it’s hard to feel good about your life.
The connection between job satisfaction and life satisfaction also makes sense given how much
of our lives are spent at work. Table 4-3 presents the results of one study that examines time spent
on daily activities, along with reported levels of positive and negative feelings during the course of
those activities.76 The participants in the study spent most of their day at work. Unfortunately, that
time resulted in the highest levels of negative feelings and the second-lowest levels of positive feel-
ings (behind only commuting). Home and leisure activities (e.g., socializing, relaxing, exercising,
intimate relations) were deemed much more satisfying but took up a much smaller portion of the
day. The implication is clear: If we want to feel better about our days, we need to find a way to be
more satisfied with our jobs.
Indeed, increases in job satisfaction have a stronger impact on life satisfaction than do increases
in salary or income. It turns out that the adage “money can’t buy happiness” is partially true.
Research suggests that life satisfaction increases with one’s salary up to a level of around $75,000
per year. After that, more money doesn’t seem to bring more happiness.77 Such findings may
seem surprising, given that pay satisfaction is one facet of overall job satisfaction (see Figure 4-1).
However, you might recall that pay satisfaction is a weaker driver of overall job satisfaction than
other facets, such as the work itself, supervision, or coworkers (see Figure 4-2). For more on the
relationship between money and happiness, see our OB Internationally feature.
TABLE 4-3 How We Spend Our Days
ACTIVITY
AVERAGE HOURS
PER DAY
POSITIVE
FEELINGS
NEGATIVE
FEELINGS
Working 6.9 3.62 0.97
On the phone 2.5 3.92 0.85
Socializing 2.3 4.59 0.57
Eating 2.2 4.34 0.59
Relaxing 2.2 4.42 0.51
Watching TV 2.2 4.19 0.58
Computer/e-mail/Internet 1.9 3.81 0.80
Commuting 1.6 3.45 0.89
Housework 1.1 3.73 0.77
Interacting with kids 1.1 3.86 0.91
Napping 0.9 3.87 0.60
Praying/meditating 0.4 4.35 0.59
Exercising 0.2 4.31 0.50
Intimate relations 0.2 5.10 0.36
Source: Positive and negative feelings measured using a scale of 0 (not at all) to 6 (very much). From D. Kahneman,
A.B. Krueger, D .A. Schkade, N. Schwarz, and A.A. Stone, “A Survey Method for Characterizing Daily Life Experience:
The Day Reconstruction Method,” Science 306 (2004), pp. 1776–80.
Final PDF to printer
113C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 113 10/11/17 08:41 AM
A P P L I C AT I O N : T R AC K I N G S AT I S FAC T I O N
Because job satisfaction seems to be a key driver of job performance, organizational commitment,
and life satisfaction, it’s important for managers to understand just how satisfied their employees
are. Several methods assess the job satisfaction of rank-and-file employees, including focus groups,
4.8
What steps can organiza-
tions take to assess and
manage job satisfaction?
The “money can’t buy happiness” adage can even be supported using nation-level data. For exam-
ple, survey data in the United States, Britain, and Japan show that people are no happier today than
they were 50 years ago, even though average incomes have more than doubled during that span.
Comparing countries reveals that nations above the poverty line are indeed happier than
nations below the poverty line. However, once that poverty threshold gets crossed, additional
income is not associated with higher levels of life satisfaction. For example, the United States is
the richest country on earth, but it trails nations like the Netherlands and Ireland in life satisfac-
tion. Understanding differences in life satisfaction across nations is important to organizations
for two reasons. First, such differences may influence how receptive a given nation is to the com-
pany’s products. Second, such differences may affect the kinds of policies and practices an organi-
zation needs to use when employing individuals in that nation.
OB INTERNATIONALLY
Source: R. Layard, qtd. in Diener, E., and E. Suh. “National Differences in Subjective Well-Being.” In Well-Being: The
Foundations of Hedonic Psychology, ed. D. Kahneman, E. Diener, and N. Schwarz. New York: Russell Sage Foundation,
1999, pp. 434–50.
A
ve
ra
g
e
P
e
rc
e
n
ta
g
e
“
H
a
p
p
y”
Average Yearly Salary per Citizen
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000
30
40
50
60
70
80
90
100
USA
Norway
Canada
Netherlands
Australia
Britain
France
Germany
Italy JapanIsrael
Spain
S. Korea
Ireland
Russia
Zimbabwe
Pakistan
India Iran
Poland
MexicoColombia
Indonesia
Brazil
Egypt
China
Romania
Turkey
S. Africa
Vietnam
Venezuela
Final PDF to printer
114 C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 114 10/11/17 08:41 AM
TABLE 4-4 Excerpts from the Job Descriptive Index and the Job
in General Scale
Think of the work you do at present. How well does each of the following words or phrases
describe your work? In the blank beside each word or phrase below, write
Y for “Yes” if it describes your work
N for “No” if it does NOT describe it
? for “?” if you cannot decide
Pay Satisfactiona
_____ Well-paid
_____ Bad
_____ Barely live on income
Coworker Satisfactiona
_____ Stimulating
_____ Smart
_____ Unpleasant
Promotion Satisfactiona
_____ Regular promotions
_____ Promotion on ability
_____ Opportunities somewhat limited
Satisfaction with Work Itselfa
_____ Fascinating
_____ Pleasant
_____ Can see my results
Supervision Satisfactiona
_____ Knows job well
_____ Around when needed
_____ Doesn’t supervise enough
OVERALL JOB SATISFACTIONb
_____ Better than most
_____ Worthwhile
_____ Worse than most
a The Job Descriptive Index, © Bowling Green State University (1975, 1985, 1997).
b The Job in General Scale, © Bowling Green State University (1982, 1985).
Source: W.K. Balzer, J.A. Kihn, P.C. Smith, J.L. Irwin, P.D. Bachiochi, C. Robie, E.F. Sinar, amp; L.F. Parra, 2000, “Users
Manual for the Job Descriptive Index (JDI; 1997 version) and the Job in General Scales.” In J.N. Stanton amp; C.D.
Crossley (ed.), Electronic Resources for the JDI and JIG. Bowling Green, OH, Bowling Green State University.
interviews, and attitude surveys. Of those three choices, attitude surveys are often the most accu-
rate and most effective.78 Attitude surveys can provide a “snapshot” of how satisfied the workforce
is and, if repeated over time, reveal trends in satisfaction levels. They also can explore the effective-
ness of major job changes by comparing attitude survey results before and after a change.
Although organizations are often tempted to design their own attitude surveys, there are ben-
efits to using existing surveys that are already in wide use. One of the most widely administered
job satisfaction surveys is the Job Descriptive Index (JDI). The JDI assesses all five satisfaction
facets in Figure 4-1: pay satisfaction, promotion satisfaction, supervisor satisfaction, coworker
satisfaction, and satisfaction with the work itself. The JDI also has been subjected to a great deal
of research attention that, by and large, supports its accuracy.79 Furthermore, the JDI includes
a companion survey—the Job in General (JIG) scale—that assesses overall job satisfaction.80
Excerpts from the JDI and JIG appear in Table 4-4.81 One strength of the JDI is that the questions
are written in a very simple and straightforward fashion so that they can be easily understood by
most employees.
The developers of the JDI offer several suggestions regarding its administration.82 For example,
they recommend surveying as much of the company as possible because any unsurveyed employ-
ees might feel that their feelings are less important. They also recommend that surveys be anony-
mous so that employees can be as honest as possible without worrying about being punished for
any critical comments about the organization. Therefore, companies must be careful in collecting
demographic information on the surveys. Some demographic information is vital for comparing
satisfaction levels across relevant groups, but too much information will make employees feel like
they could be identified. Finally, the developers suggest that the survey should be administered
by the firm’s human resources group or an outside consulting agency. This structure will help
employees feel that their anonymity is more protected.
Final PDF to printer
115C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 115 10/11/17 08:41 AM
Once JDI data have been collected, a number of interesting questions can be explored.83 First,
the data can indicate whether the organization is satisfied or dissatisfied by comparing average
scores for each facet with the JDI’s “neutral levels” for those facets (the “neutral levels” are avail-
able in the JDI manual). Second, it becomes possible to compare the organization’s scores with
national norms to provide some context for the firm’s satisfaction levels. The JDI manual also
provides national norms for all facets and breaks down those norms according to relevant demo-
graphic groups (e.g., managers vs. nonmanagers, new vs. senior employees, gender, education).
Third, the JDI allows for within-organization comparisons to determine which departments have
the highest satisfaction levels and which have the lowest.
The results of attitude survey efforts should then be fed back to employees so that they feel
involved in the process. Of course, attitude surveys ideally should be a catalyst for some kind of
improvement effort.84 Surveys that never lead to any kind of on-the-job change eventually may
be viewed as a waste of time. As a result, the organization should be prepared to react to the
survey results with specific goals and action steps. For example, an organization with low pay
satisfaction may react by conducting additional benchmarking to see whether compensation
levels are trailing those of competitors. An organization with low promotion satisfaction might
react by revising its system for assessing performance. Finally, an organization that struggles
with satisfaction with the work itself could attempt to redesign key job tasks or, if that proves
too costly, train supervisors in strategies for increasing the five core job characteristics on a
more informal basis.
4.1 Job satisfaction is a pleasurable emotional state resulting from the appraisal of one’s job or
job experiences. It represents how you feel about your job and what you think about your
job.
4.2 Values are things that people consciously or subconsciously want to seek or attain. Accord-
ing to value-percept theory, job satisfaction depends on whether you perceive that your job
supplies those things that you value.
4.3 Employees consider a number of specific facets when evaluating their job satisfaction. These
facets include pay satisfaction, promotion satisfaction, supervision satisfaction, coworker
satisfaction, and satisfaction with the work itself.
4.4 Job characteristics theory suggests that five “core characteristics”—variety, identity, signifi-
cance, autonomy, and feedback—combine to result in particularly high levels of satisfaction
with the work itself.
4.5 Apart from the influence of supervision, coworkers, pay, and the work itself, job satisfaction
levels fluctuate during the course of the day. Rises and falls in job satisfaction are triggered
by positive and negative events that are experienced. Those events trigger changes in emo-
tions that eventually give way to changes in mood.
4.6 Moods are states of feeling that are often mild in intensity, last for an extended period
of time, and are not explicitly directed at anything. Intense positive moods include being
enthusiastic, excited, and elated. Intense negative moods include being hostile, nervous, and
annoyed. Emotions are states of feeling that are often intense, last only for a few minutes,
and are clearly directed at someone or some circumstance. Positive emotions include joy,
pride, relief, hope, love, and compassion. Negative emotions include anger, anxiety, fear,
guilt, shame, sadness, envy, and disgust.
TA K E AWAY S
Final PDF to printer
116 C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 116 10/11/17 08:41 AM
K E Y T E R M S
• Job satisfaction p. 94
• Values p. 94
• Value-percept theory p. 94
• Pay satisfaction p. 96
• Promotion satisfaction p. 96
• Supervision satisfaction p. 97
• Coworker satisfaction p. 97
• Satisfaction with the work itself p. 97
• Meaningfulness of work p. 100
• Responsibility for outcomes p. 100
• Knowledge of results p. 100
• Job characteristics theory p. 100
• Variety p. 100
• Identity p. 101
• Significance p. 101
• Autonomy p. 102
• Feedback p. 102
• Knowledge and skill p. 103
• Growth need strength p. 103
• Job enrichment p. 103
• Job crafting p. 103
• Moods p. 104
• Pleasantness p. 106
• Activation p. 106
• Flow p. 107
• Affective events theory p. 108
• Emotions p. 108
• Positive emotions p. 108
• Negative emotions p. 108
• Emotional labor p. 109
• Emotional contagion p. 109
• Life satisfaction p. 111
4.1 Which of the values in Table 4-1 do you think are the most important to employees in
general? Are there times when the values in the last three categories (altruism, status, and
environment) become more important than the values in the first five categories (pay, pro-
motions, supervision, coworkers, and the work itself)?
4.2 What steps can organizations take to improve promotion satisfaction, supervision satisfac-
tion, and coworker satisfaction?
4.3 Consider the five core job characteristics (variety, identity, significance, autonomy, and feed-
back). Do you think that any one of those characteristics is more important than the other
four? Is it possible to have too much of some job characteristics?
4.4 We sometimes describe colleagues or friends as “moody.” What do you think it means to be
“moody” from the perspective of Figure 4-6?
4.5 Consider the list of positive and negative emotions in Table 4-2. Which of these emotions
are most frequently experienced at work? What causes them?
D I S C U S S I O N Q U E S T I O N S
4.7 Job satisfaction has a moderate positive relationship with job performance and a strong
positive relationship with organizational commitment. It also has a strong positive relation-
ship with life satisfaction.
4.8 Organizations can assess and manage job satisfaction using attitude surveys such as the Job
Descriptive Index (JDI), which assesses pay satisfaction, promotion satisfaction, supervision
satisfaction, coworker satisfaction, and satisfaction with the work itself. It can be used to
assess the levels of job satisfaction experienced by employees, and its specific facet scores
can identify interventions that could be helpful.
Final PDF to printer
117C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 117 10/11/17 08:41 AM
George Jenkins started Publix’s employee stock ownership plan in 1974. Employees who work
more than 1,000 hours and have one year of tenure are granted shares that have an initial value
around 10 percent of annual compensation. Employees then receive additional grants each year
for as long as they stay, while having the option to purchase additional stock with an automatic
deduction from their paychecks. Since 1974, Publix’s stock has delivered an average annual
return of almost 17 percent. To get a sense of what that means during a career, a veteran store
manager with 20,000 shares would have over $900,000 in stock.
Publix’s stock ownership plan has helped it become the largest employee-owned company in
the world (it sits at 101 in the Fortune 500). That level of ownership is one reason that employ-
ees are termed “associates”—to signify that they are co-owners of the firm. Even the company’s
promotion-from-within policy is referred to as “succession planning,” a term typically only used
with top executives. One manager notes that jargon is used to show that “no associate is better
or more important than the others.” The ownership structure also gives the company a bit more
freedom to chart its own course. “I’m amazed that more companies don’t offer ownership in
the company in order to get better performance,” argues Publix’s outgoing CEO, Ed Crenshaw.
“Being a privately held company gives us the freedom to take a longer view of the business, and
it makes a huge difference in how you can allocate and spend capital. We’re very fortunate to be
able to do that.”
Scientific studies of stock ownership suggest that employees feel higher satisfaction levels
because of the mindset that comes with owning. There certainly seems to be some evidence of
that at Publix. Its annual voluntary turnover rate sits at just 5 percent in an industry that averages
65 percent! In part, that loyalty can be seen as repaying a company that has never downsized in
its 90-year history. All of this has created admirers outside the company, not just inside it. As
billionaire investor Warren Buffett summarizes, “It’s the kind of company I’d like to buy. It has a
terrific record in a very, very, very tough industry. There’s a certain amount of magic down there
in terms of running the place.”
4.1 If you reflect on all the things Publix does to build and maintain satisfaction levels, which
would “move the needle” for you the most? Why?
4.2 If you had the opportunity to allocate a portion of your paycheck to stock ownership in your
company, would you? Why or why not? How do you think owning stock would shape your
attitudes toward your employer?
4.3 Businesses like Publix employ a lot of part-time employees, and employees who are just
getting started in their work careers. Do you think it’s easier to build job satisfaction levels
among such employees, or harder?
Sources: C. Tkaczyk, “My Five Days of ‘Bleeding Green,’” Fortune, March 15, 2016; and A.A. Buchko, “The Effects of
Employee Ownership on Employee Attitudes: An Integrated Causal Model and Path Analysis.” Journal of Management
Studies 30, no. 4 (July 1993), pp. 633–57.
C A S E : P U B L I X
EXERCISE: JOB SATISFACTION ACROSS JOBS
The purpose of this exercise is to examine satisfaction with the work itself across jobs. This
exercise uses groups, so your instructor will either assign you to a group or ask you to create your
own group. The exercise has the following steps:
4.1 Use the OB Assessments for Chapter 4 to calculate the Satisfaction Potential Score (SPS)
for the following four jobs:
a. A third-grade public school teacher.
b. A standup comedian.
Final PDF to printer
118 C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 118 10/11/17 08:41 AM
4.1 Locke, E.A. “The
Nature and Causes of
Job Satisfaction.” In
Handbook of Industrial
and Organizational
Psychology, ed.
M. Dunnette. Chicago:
Rand McNally, 1976,
pp. 1297–1350.
4.2 “Americans’ Job Satis-
faction Falls to Record
Low.” Associated Press,
January 5, 2010, http://
www.msnbc.msn
.com/id/34691428/ns/
business-careers.
4.3 Locke, “The Nature and
Causes of Job Satisfac-
tion”; Rokeach, M.
The Nature of Human
Values. New York: Free
Press, 1973; Schwartz,
S.H. “Universals
in the Content and
Structure of Values:
Theoretical Advances
and Empirical Tests
in 20 Countries.” In
Advances in Experimen-
tal Social Psychology,
Vol. 25, ed. M. Zanna.
New York: Academic
Press, 1992, pp. 1–65;
and Edwards, J.R.,
and D.M. Cable.
“The Value of Value
Congruence.” Journal
of Applied Psychology
94 (2009), pp. 654–77.
4.4 Dawis, R.V. “Voca-
tional Interests, Values,
and Preferences.” In
Handbook of Industrial
and Organizational
Psychology, Vol. 2, ed.
M.D. Dunnette and
L.M. Hough. Palo
Alto, CA: Consulting
Psychologists Press,
1991, pp. 834–71; and
Cable, D.M., and J.R.
Edwards. “Complemen-
tary and Supplemen-
tary Fit: A Theoretical
and Empirical Integra-
tion.” Journal of Applied
Psychology 89 (2004),
pp. 822–34.
4.5 Locke, “The Nature
and Causes of Job
Satisfaction.”
4.6 Judge, T.A., and A.H.
Church. “Job Satisfac-
tion: Research and
Practice.” In Industrial
and Organizational Psy-
chology: Linking Theory
with Practice, ed. C.L.
Cooper and E.A. Locke.
Oxford, UK: Blackwell,
2000, pp. 166–98.
4.7 Locke, “The Nature
and Causes of Job
Satisfactin.”
4.8 Smith, P.C.; L.M.
Kendall; and C.L.
Hulin. The Measure-
ment of Satisfaction
in Work and Retire-
ment. Chicago: Rand
McNally, 1969.
4.9 Lawler, E.E. Pay
and Organizational
Effectiveness: A Psycho-
logical View. New York:
McGraw-Hill, 1971.
4.10 Locke, “The Nature
and Causes of Job
Satisfaction.”
4.11 Moskowitz, M.; R.
Levering; and C.
Tkaczyk. “100 Best
Companies to Work
For.” Fortune, February
7, 2011, pp. 91–101.
4.12 Smith et al., “The
Measurement of
Satisfaction.”
4.13 Locke, “The Nature
and Causes of Job
Satisfaction.”
4.14 Tkaczyk, C. “Nord-
strom.” Fortune,
October 18, 2010, p. 37.
E N D N OT E S
c. A computer programmer whose job is to replace “15” with “2015” in thousands of lines
of computer code.
d. A president of the United States.
4.2 Which job has the highest SPS? Which core job characteristics best explain why some jobs
have high scores and other jobs have low scores? Write down the scores for the four jobs in
an Excel file on the classroom computer or on the board.
4.3 Class discussion (whether in groups or as a class) should center on two questions. First, is
the job that scored the highest really the one that would be the most enjoyable on a day-in,
day-out basis? Second, does that mean it would be the job that you would pick if you could
snap your fingers and magically attain one of the jobs on the list? Why or why not? What
other job satisfaction theory is relevant to this issue?
Final PDF to printer
119C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 119 10/11/17 08:41 AM
4.15 Smith et al., “The
Measurement of
Satisfaction.”
4.16 Source: Locke, “The
Nature and Causes of
Job Satisfaction.”
4.17 Burchell, M., and
J. Robin. The Great
Workplace: How to Build
It, How to Keep It, and
Why It Matters. San
Francisco: Jossey-Bass,
2011.
4.18 Smith et al., “The
Measurement of
Satisfaction.”
4.19 Burchell and Robin,
The Great Workplace.
4.20 Smith et al., “The
Measurement of
Satisfaction.”
4.21 Murphy, R.M. “Happy
Campers.” Fortune,
April 25, 2011.
4.22 Ironson, G.H.; P.C.
Smith; M.T. Brannick;
W.M. Gibson; and K.B.
Paul. “Construction
of a Job in General
Scale: A Comparison
of Global, Composite,
and Specific Measures.”
Journal of Applied
Psychology 74 (1989),
pp. 193–200; Russell,
S.S.; C. Spitzmuller;
L.F. Lin; J.M. Stanton;
P.C. Smith; and G.H.
Ironson. “Shorter Can
Also Be Better: The
Abridged Job in Gen-
eral Scale.” Educational
and Psychological Mea-
surement 64 (2004),
pp. 878–93; Bowling,
N.A., and Hammond,
G.D. “A Meta-Analytic
Examination of the
Construct Validity
of the Michigan
Organizational Assess-
ment Questionnaire Job
Satisfaction Subscale.”
Journal of Vocational
Behavior 73 (2008),
pp. 63–77; and Judge,
T.A.; R.F. Piccolo; N.P.
Podsakoff; J.C. Shaw;
and B.L. Rich. “The
Relationship between
Pay and Job Satisfac-
tion: A Meta-Analysis.”
Journal of Vocational
Behavior 77 (2010),
pp. 157–67.
4.23 Taylor, F.W. The
Principles of Scientific
Management. New York:
Wiley, 1911; and Gil-
breth, F.B. Motion Study:
A Method for Increasing
the Efficiency of the
Workman. New York:
Van Nostrand, 1911.
4.24 Hackman, J.R., and
E.E. Lawler III.
“Employee Reactions
to Job Characteristics.”
Journal of Applied
Psychology 55 (1971),
pp. 259–86.
4.25 Hackman, J.R., and
G.R. Oldham. Work
Redesign. Reading, MA:
Addison-Wesley, 1980.
4.26 Ibid.
4.27 Ibid.
4.28 Hackman, J.R., and
G.R. Oldham.
“Motivation through
the Design of Work:
Test of a Theory.”
Organizational Behavior
and Human Decision
Processes 16 (1976),
pp. 250–79.
4.29 Hackman and Oldham,
Work Redesign.
4.30 Turner, A.N., and P.R.
Lawrence. Industrial
Jobs and the Worker.
Boston: Harvard
University Graduate
School of Business
Administration, 1965.
4.31 Hackman and Lawler,
“Employee Reactions
to Job Characteristics.”
4.32 Source: Berns, G.
Satisfaction: The Science
of Finding True Fulfill-
ment. New York: Henry
Holt, 2005, p.xiv.
4.33 Hackman and Oldham,
Work Redesign.
4.34 Turner and Lawrence,
Industrial Jobs and the
Worker.
4.35 Hackman and Oldham,
Work Redesign.
4.36 Grant, A.M. “The
Significance of Task
Significance: Job Per-
formance Effects, Rela-
tional Mechanisms, and
Boundary Conditions.”
Journal of Applied Psy-
chology 93 (2008),
pp. 108–24.
4.37 Hackman and Oldham,
Work Redesign.
4.38 Turner and Lawrence,
Industrial Jobs and the
Worker.
4.39 Breaugh, J.A. “The
Measurement of Work
Autonomy.” Human
Relations 38 (1985),
pp. 551–70.
4.40 Hackman and Oldham,
Work Redesign.
4.41 Humphrey, S.E.; J.D.
Nahrgang; and F.P.
Morgeson. “Integrating
Motivational, Social,
and Contextual Work
Design Features:
A Meta-Analytic
Final PDF to printer
120 C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 120 10/11/17 08:41 AM
Summary and Theo-
retical Extension of the
Work Design Litera-
ture.” Journal of Applied
Psychology 92 (2007),
pp. 1332–56; and Fried,
Y., and G.R. Ferris.
“The Validity of the Job
Characteristics Model:
A Review and Meta-
Analysis.” Personnel
Psychology 40 (1987),
pp. 287–322.
4.42 Hackman and Oldham,
Work Redesign.
4.43 Loher, B.T.; R.A. Noe;
N.L. Moeller; and M.P.
Fitzgerald. “A Meta-
Analysis of the Relation
of Job Characteristics
to Job Satisfaction.”
Journal of Applied Psy-
chology 70 (1985),
pp. 280–89.
4.44 Campion, M.A., and
C.L. McClelland.
“Interdisciplinary
Examination of the
Costs and Benefits
of Enlarged Jobs: A
Job Design Quasi-
Experiment.” Journal
of Applied Psychology 76
(1991), pp. 186–98.
4.45 Ibid.
4.46 Wrzesniewski, A., and
J.E. Dutton. “Crafting
a Job: Revisioning
Employees as Active
Crafters of Their
Work.” Academy of
Management Review 26
(2001), pp. 179–201;
and Tims, M.; A.B.
Bakker; and D. Derks.
“Development and
Validation of the Job
Crafting Scale.” Journal
of Vocational Behavior
80 (2012), pp. 173–86.
4.47 Morris, W.N. Mood:
The Frame of Mind.
New York: Springer-
Verlag, 1989.
4.48 Watson, D., and A.
Tellegen. “Toward a
Consensual Structure
of Mood.” Psychological
Bulletin 98 (1985),
pp. 219–35; Russell,
J.A. “A Circumplex
Model of Affect.”
Journal of Personality
and Social Psychology
39 (1980), pp. 1161–78;
and Larsen, R.J., and
E. Diener. “Promises
and Problems with the
Circumplex Model of
Emotion.” In Review of
Personality and Social
Psychology: Emotion,
Vol. 13, ed. M.S. Clark.
Newbury Park, CA:
Sage, 1992, pp. 25–59.
4.49 Ibid.
4.50 Moskowitz et al., “100
Best Companies to
Work For.”
4.51 Ibid.
4.52 Csikszentmihalyi, M.
Finding Flow: The Psy-
chology of Engagement
with Everyday Life.
New York: Basic
Books, 1997;
Csikszentmihalyi, M.
Flow: The Psychology
of Optimal Experience.
New York: Harper-
Perennial, 1990; and
Csikszentmihalyi, M.
Beyond Boredom and
Anxiety. San Francisco:
Jossey-Bass, 1975.
4.53 Quinn, R.W. “Flow
in Knowledge Work:
High Performance
Experience in the
Design of National
Security Technology.”
Administrative Science
Quarterly 50 (2005),
pp. 610–41; Jackson,
S.A., and H.W. Marsh.
“Development and
Validation of a Scale to
Measure Optimal Expe-
rience: The Flow State
Scale.” Journal of Sport
and Exercise Psychology
18 (1996), pp. 17–35;
and Bakker, A.B. “The
Work-Related Flow
Inventory: Construc-
tion and Initial Valida-
tion of the WOLF.”
Journal of Vocational
Behavior 72 (2008),
pp. 400–14.
4.54 Weiss, H.M., and R.
Cropanzano. “Affective
Events Theory: A Theo-
retical Discussion of
the Structure, Causes,
and Consequences of
Affective Experiences
at Work.” In Research in
Organizational Behavior,
Vol. 18, ed. B.M. Staw
and L.L. Cummings.
Greenwich, CT: JAI
Press, 1996, pp. 1–74.
4.55 Source: Weiss, H.M.,
and K.E. Kurek,
“Dispositional Influ-
ences on Affective
Experiences at Work.”
In Personality and
Work: Reconsidering the
Role of Personality in
Organizations, ed. M.R.
Barrick and A.M. Ryan.
San Francisco: Jossey-
Bass, 2003, pp. 121–49.
4.56 Weiss and Cropanzano,
“Affective Events
Theory.”
4.57 Lazarus, R.S. Emotion
and Adaptation. New
York: Oxford University
Press, 1991.
4.58 Hochschild, A.R.
The Managed Heart:
Commercialization
Final PDF to printer
121C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 121 10/11/17 08:41 AM
of Human Feeling.
Berkeley: University
of California Press,
1983; and Rafaeli, A.,
and R.I. Sutton. “The
Expression of Emotion
in Organizational Life.”
Research in Organi-
zational Behavior 11
(1989), pp. 1–42.
4.59 Hatfield, E.; J.T.
Cacioppo; and R.L.
Rapson. Emotional
Contagion. New York:
Cambridge University
Press, 1994.
4.60 Ashkanasy, N.M.;
C.E.J. Hartel; and C.S.
Daus. “Diversity and
Emotion: The New
Frontiers in Orga-
nizational Behavior
Research.” Journal of
Management 28 (2002),
pp. 307–38.
4.61 Judge, T.A.; C.J.
Thoreson; J.E. Bono;
and G.K Patton. “The
Job Satisfaction–Job
Performance Relation-
ship: A Qualitative and
Quantitative Review.”
Psychological Bulletin
127 (2001),
pp. 376–407.
4.62 Baas, M.; C.K.W. De
Dreu; and B.A. Nijstad.
“A Meta-Analysis of
25 Years of Mood—
Creativity Research:
Hedonic Tone, Activa-
tion, or Regulatory
Focus.” Psychological
Bulletin 134 (2008),
pp. 779–806; and Lyu-
bomirsky, S.; L. King;
and E. Diener. “The
Benefits of Frequent
Positive Affect: Does
Happiness Lead to
Success?” Psychological
Bulletin 131 (2005), pp.
803–55.
4.63 Brief, A.P., and H.M.
Weiss. “Organizational
Behavior: Affect in the
Workplace.” Annual
Review of Psychology 53
(2002), pp. 279–307.
4.64 Isen, A.M., and R.A.
Baron. “Positive Affect
as a Factor in Orga-
nizational Behavior.”
Research in
Organizational
Behavior 13 (1991),
pp. 1–53.
4.65 Tsai, W.C.; C.C. Chen;
and H.L. Liu. “Test
of a Model Linking
Employee Positive
Moods and Task Per-
formance.” Journal of
Applied Psychology 92
(2007), pp. 1570–83.
4.66 Beal, D.J.; H.M. Weiss;
E. Barros; and S.M.
MacDermid. “An Epi-
sodic Process Model of
Affective Influences on
Performance.” Journal
of Applied Psychology 90
(2005), pp. 1054–68;
and Miner, A.G., and
T.M. Glomb. “State
Mood, Task Perfor-
mance, and Behavior
at Work: A Within-
Persons Approach.”
Organizational Behavior
and Human Decision
Processes 112 (2010),
pp. 43–57.
4.67 Locke, “The Nature
and Causes of Job
Satisfaction.”
4.68 Riketta, M. “The
Causal Relation
between Job Attitudes
and Job Performance:
A Meta-Analysis
of Panel Studies.”
Journal of Applied
Psychology 93 (2008),
pp. 472–81.
4.69 LePine, J.A.; A. Erez;
and D.E. Johnson.
“The Nature and
Dimensionality
of Organizational
Citizenship Behavior:
A Critical Review and
Meta-Analysis.” Journal
of Applied Psychology 87
(2002), pp. 52–65.
4.70 Lyubomirsky et al.,
“The Benefits of Fre-
quent Positive Affect”;
and Dalal, R.S.; H.
Lam; H.M. Weiss; E.R.
Welch; and C.L. Hulin.
“A Within-Person
Approach to Work
Behavior and Perfor-
mance: Concurrent and
Lagged Citizenship-
Counterproductivity
Associations, and
Dynamic Relationships
with Affect and Overall
Job Performance.”
Academy of Manage-
ment Journal 52
(2009), pp. 1051–66.
4.71 Dalal, R.S. “A
Meta-Analysis of the
Relationship between
Organizational Citizen-
ship Behavior and
Counterproductive
Work Behavior.”
Journal of Applied
Psychology 90 (2005),
pp. 1241–55.
4.72 Yang, J., and J.M.
Diefendorff. “The
Relations of Daily
Counterproductive
Workplace Behavior
with Emotions, Situa-
tional Antecedents, and
Personality Modera-
tors: A Diary Study in
Hong Kong.” Personnel
Psychology 62 (2009),
pp. 259–95; and Dalal
et al., “A Within-
Person Approach to
Final PDF to printer
122 C H A P T E R 4 Job Satisfaction
coL27660_ch04_091-123.indd 122 10/11/17 08:41 AM
Work Behavior and
Performance.”
4.73 Cooper-Hakim, A., and
C. Viswesvaran. “The
Construct of Work
Commitment: Testing
an Integrative Frame-
work.” Psychological
Bulletin 131 (2005),
pp. 241–59; Harrison,
D.A.; D. Newman;
and P.L. Roth. “How
Important Are Job Atti-
tudes? Meta-Analytic
Comparisons of
Integrative Behavioral
Outcomes and Time
Sequences.” Academy
of Management
Journal 49 (2006),
pp. 305–25; and Meyer,
J.P.; D.J. Stanley; L.
Herscovitch; and L.
Topolnytsky. “Affective,
Continuance, and Nor-
mative Commitment
to the Organization: A
Meta-Analysis of Ante-
cedents, Correlates,
and Consequences.”
Journal of Vocational
Behavior 61 (2002),
pp. 20–52.
4.74 Ibid.
4.75 Tait, M.; M.Y. Padgett;
and T.T. Baldwin. “Job
and Life Satisfaction: A
Reexamination of the
Strength of the Rela-
tionship and Gender
Effects as a Function of
the Date of the Study.”
Journal of Applied Psy-
chology 74 (1989), pp.
502–507; Judge, T.A.,
S. Watanabe. “Another
Look at the Job
Satisfaction–Life Satis-
faction Relationship.”
Journal of Applied Psy-
chology 78 (1993), pp.
939–48; and Erdogan,
B.; T.N. Bauer; D.M.
Truxillo; and L.R. Man-
sfield. “Whistle While
You Work: A Review
of the Life Satisfaction
Literature.” Journal of
Management 38 (2012),
pp. 1038–83.
4.76 Kahneman, D.;
A.B. Krueger; D.A.
Schkade; N. Schwarz;
and A.A. Stone. “A
Survey Method for
Characterizing Daily
Life Experience: The
Day Reconstruction
Method.” Science 306
(2004), pp. 1776–80.
4.77 Kahneman, D., and A.
Deaton. “High Income
Improves Evaluation
of Life but Not Emo-
tional Well-Being.”
Proceedings of the
National Academy of
Sciences 107 (2010),
pp. 16489–93.
4.78 Saari, L.M., and T.A.
Judge. “Employee Atti-
tudes and Job Satisfac-
tion.” Human Resource
Management 43 (2004),
pp. 395–407.
4.79 Kinicki, A.J.; F.M.
McKee-Ryan; C.A.
Schriesheim; and K.P.
Carson. “Assessing
the Construct Validity
of the Job Descrip-
tive Index: A Review
and Meta-Analysis.”
Journal of Applied Psy-
chology 87 (2002), pp.
14–32; Hanisch, K.A.
“The Job Descriptive
Index Revisited: Ques-
tions about the Ques-
tion Mark.” Journal of
Applied Psychology 77
(1992), pp. 377–82;
and Jung, K.G.; A.
Dalessio; and S.M.
Johnson. “Stability of
the Factor Structure
of the Job Descriptive
Index.” Academy of
Management Journal
29 (1986), pp. 609–16.
4.80 Ironson et al., “Con-
struction”; and Russell
et al., “Shorter Can
Also Be Better.”
4.81 Balzer, W.K.; J.A.
Kihn; P.C. Smith; J.L.
Irwin; P.D. Bachiochi;
C. Robie; E.F. Sinar;
and L.F. Parra. “Users’
Manual for the Job
Descriptive Index (JDI;
1997 version) and the
Job in General Scales.”
In Electronic Resources
for the JDI and JIG,
ed. J.M. Stanton and
C.D. Crossley. Bowling
Green, OH: Bowling
Green State University,
2000.
4.82 Ibid.
4.83 Ibid.
4.84 Saari and Judge,
“Employee Attitudes.”
Final PDF to printer
coL27660_ch04_091-123.indd 123 10/11/17 08:41 AM
Final PDF to printer
coL27660_ch05_124-159.indd 124 10/11/17 08:42 AM
5
LEARNING GOALS
5.1 What is stress, and how is it related to stressors and strains?
5.2 What are the four main types of stressors?
5.3 How do individuals cope with stress?
5.4 How does the Type A Behavior Pattern influence the stress process?
5.5 How does stress affect job performance and organizational commitment?
5.6 What steps can organizations take to manage employee stress?
After reading this chapter, you should be able to answer the following questions:
Stress
INDIVIDUAL
OUTCOMES
INDIVIDUAL
MECHANISMS
INDIVIDUAL
CHARACTERISTICS
ORGANIZATIONAL
MECHANISMS
Organizational
Culture
Organizational
Structure
Teams:
Processes &
Communication
Motivation
Trust, Justice,
& Ethics
Teams:
Characteristics &
Diversity
Learning &
Decision Making
Ability
Personality &
Cultural Values
Stress
Leadership:
Power &
Negotiation
Job
Satisfaction
Leadership:
Styles &
Behaviors
Organizational
Commitment
Job
Performance
GROUP
MECHANISMS
Final PDF to printer
coL27660_ch05_124-159.indd 125 10/11/17 08:42 AM
W
hen asked to think of a Honeywell product, the
company’s “round” thermostat might come to mind.
In continuous production since 1953, the T-86
thermostat is used in more homes and commercial build-
ings than any other, and is part of the Smithsonian Design
Museum’s collection of iconic everyday items. If asked what
other products Honeywell manufactures, you might have a
vague sense that they manufacture equipment for the mili-
tary and space industries, but you might have difficulty nam-
ing anything specific. In fact, Honeywell manufactures tens
of thousands of products, albeit most are used in the pro-
duction of other products and services. Examples of busi-
nesses in which Honeywell operates include commercial and
defense aviation, satellite communications, home comfort
and security, remote health monitoring, industrial automation,
petroleum and petrochemical equipment, and products and
materials used in electronics, fertilizers, films, and adhesives.
Over the last century, Honeywell has evolved into a
$40 billion company through a constant stream of acquisi-
tions and divestitures. To Honeywell’s employees, this evo-
lution has been a double-edged sword. On the one hand,
continual change in the company’s mix of businesses cre-
ates opportunities for employees to develop in their knowl-
edge and skills. For example, company managers may be
tasked with the challenge of integrating an acquisition into
the larger company and identifying potential synergies with
existing businesses. On the other hand, constant change
creates a great deal of uncertainty and stress among the
company’s employees. For instance, an acquisition of a
related business can create redundancies in functional
roles, and so employees may feel threatened about losing
their jobs or being forced to relocate.
Honeywell recognizes that there are costs associated
with employee stress and has taken steps to mitigate its
effects. For example, the company offers a multifaceted
health benefits package that includes things like medical
and preventative care, mental health services, and sub-
stance abuse counseling. Although most large companies
offer similar types of benefits, Honeywell’s HealthResource
program is more innovative. It consists of a set of tools that
help employees connect with health care resources any
time they might need them. For example, registered nurses
are available to answer health care questions and direct
employees to other resources. The program also provides
employees with access to information from the Mayo Clinic
regarding issues such as weight management, diet, and
stress reduction. Honeywell believes that when employees
are given information to make informed decisions about
health and well-being, the employees, their families, and the
company all benefit.
HONEYWELL
©CTK/Alamy
Final PDF to printer
126 C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 126 10/11/17 08:42 AM
S T R E S S
Stress is an OB topic that’s probably quite familiar to you. Even if you don’t have a lot of work
experience, consider how you feel toward the end of a semester when you have to cram for several
final exams and finish a term paper and other projects. At the same time, you might have also
been looking for a job or planning a trip with friends or family. Although some people might be
able to deal with all of these demands without becoming too frazzled, most people would say this
type of scenario causes them to feel “stressed out.” This stressed out feeling might even be accom-
panied by headaches, stomach upsets, backaches, or sleeping difficulties. Although you might
believe your stress will diminish once you graduate and settle down, high stress on the job is more
prevalent than it’s ever been before.1 The federal government’s National Institute for Occupa-
tional Safety and Health (NIOSH) summarized findings from several sources that indicated up to
40 percent of U.S. workers feel their jobs are “very stressful” or “extremely stressful.”2 Unfortu-
nately, high stress is even more prevalent in the types of jobs that most of you are likely to have
after you graduate. In fact, managers are approximately 21 percent more likely than the average
5.1
What is stress, and how is
it related to stressors and
strains?
TABLE 5-1 Jobs Rated from Least Stressful (1) to Most Stressful (200)
LEAST STRESSFUL JOBS
STRESS
LEVEL MOST STRESSFUL JOBS
STRESS
LEVEL
1. Tenured University Professor 5.03 143. Elementary School Teacher 27.37
2. Audiologist 6.33 148. Management Consultant 28.24
3. Medical Records Technician 7.48 150. Air Traffic Controller 28.58
4. Jeweler 8.10 154. Surgeon 28.90
8. Librarian 10.61 163. Construction Foreman 30.92
14. Software Engineer 12.13 166. Lumberjack 32.00
18. Computer Service Technician 12.64 172. Attorney 36.40
24. Occupational Therapist 13.14 175. Sales Representative 36.95
29. Chiropractor 13.55 179. Real Estate Agent 38.57
30. Actuary 14.09 180. Social Media Manager 38.60
35. Multimedia Artist 14.40 183. Stockbroker 39.97
39. Hair Stylist 14.59 185. Advertising Account Executive 43.24
40. Meteorologist 14.65 189. Taxi Driver 46.18
42. Loan Officer 14.73 191. Senior Corporate Executive 47.55
47. Biologist 15.10 194. Event Coordinator 49.73
50. Optician 15.57 195. Police Officer 50.81
53. Veterinarian 15.83 196. Airline Pilot 59.12
63. Chemist 17.00 198. Newspaper Reporter 69.67
74. Sustainability Manager 18.50 199. Firefighter 71.64
84. Accountant 19.85 200. Enlisted Military Personnel 74.83
Source: Adapted from L. Krantz and T. Lee, “The Jobs Rated Almanac” (Lake Geneva, WI: iFocus Books, 2015). The stress
level score is calculated by summing points in 10 categories: deadlines, working in the public eye, competitiveness, physical
demands, environmental conditions, hazards, own life at risk, another’s life at risk, public encounters, and employment change.
Final PDF to printer
127C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 127 10/11/17 08:42 AM
worker to describe their jobs as stressful.3 Moreover, as we described in the chapter opening, your
level of stress may be even greater if you take a job in an organization, such Honeywell, where
employees have to cope with change and uncertainty. Table 5-1 provides a list of jobs and their
rank in terms of how stressful they are.
Stress is defined as a psychological response to demands that possess certain stakes for the
person and that tax or exceed the person’s capacity or resources.4 The demands that cause people
to experience stress are called stressors. The negative consequences that occur when demands
tax or exceed a person’s capacity or resources are called strains. These definitions illustrate that
stress depends on both the nature of the demand and the person who confronts it. People differ
in terms of how they perceive and evaluate stressors and the way they cope with them. As a result,
different people may experience different levels of stress even when confronted with the exact
same situation.
W H Y A R E S O M E E M P LOY E E S M O R E
“ S T R E S S E D ” T H A N OT H E R S ?
Stress in the workplace has been widely studied by scholars for over a century and there are many
different theories that outline causes and consequences of stress.5 However, to understand what
it means to feel “stressed,” it’s helpful to consider the transactional theory of stress. This theory
explains how stressors are perceived and appraised, as well as how people respond to those per-
ceptions and appraisals.6 When people first encounter stressors, the process of primary appraisal
is triggered.7 As shown in Figure 5-1, primary appraisal occurs as people evaluate the significance
and the meaning of the stressor they’re confronting. Here, people first consider whether a demand
causes them to feel stressed, and if it does, they consider the implications of the stressor in terms
of their personal goals and overall well-being.8
As an example of a primary appraisal, consider the job of a cashier at a well-run convenience
store. In this store, cashiers engage in routine sales transactions with customers. Customers walk
in the store and select merchandise, and the cashiers on duty ring up the sale and collect the
money. Under normal day-to-day circumstances at this store, well-trained cashiers would not likely
FIGURE 5-1 Transactional Theory of Stress
Hindrance Challenge
Work
Nonwork
Stressors
Role conflict
Role ambiguity
Role overload
Daily hassles
•
•
•
•
Work–family
conflict
Negative life
events
•
•
Time pressure
Work complexity
Work responsibility
•
•
•
Family time
demands
Personal
development
Positive life events
•
•
•
STRESS
Primary Appraisal
Is this stressful?
Secondary Appraisal
How can I cope?
Financial
uncertainty
•
Final PDF to printer
128 C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 128 10/11/17 08:42 AM
feel that these transactions are overly taxing or exceed their capacity, so those cashiers would not
likely appraise these job demands as stressful. Job demands that tend not to be appraised as stress-
ful are called benign job demands.
However, consider how convenience store cashiers would react in a different store in which the
cash register and credit card machine break down often and without warning. The cashiers who
work at this store would likely view their job as being more stressful. This is because they would
have to diagnose and fix problems with equipment while dealing with customers who are grow-
ing more and more impatient. Furthermore, the cashiers in this store might appraise the stressful
situation as one that unnecessarily prevents them from achieving their goal of being viewed as an
effective employee in the eyes of the customers and the store manager.
Finally, consider a third convenience store in which the cashiers’ workload is higher due to
additional responsibilities that include receiving merchandise from vendors, taking physical inven-
tory, and training new employees. In this store, the cashiers may appraise their jobs as stressful
because of the higher workload and the need to balance different priorities. However, in contrast
to the cashiers in the previous example, cashiers in this store might appraise these demands as
providing an opportunity to learn and demonstrate the type of competence that often is rewarded
with satisfying promotions and pay raises.
T Y P E S O F ST R E S S O R S
In the previous two examples, the cashiers were confronted with demands that a primary appraisal
would label as “stressful.” However, the specific demands in the two examples have an important
difference. Having to deal with equipment breakdowns or unhappy customers is not likely to be
perceived by most employees as having implications that are personally beneficial; in fact, the
opposite is likely to be true. These kinds of stressors are called hindrance stressors, or stressful
demands that people tend to perceive as hindering their progress toward personal accomplish-
ments or goal attainment.9 Hindrance stressors most often trigger negative emotions such as anxi-
ety and anger.10
In contrast, having to deal with additional responsibilities is likely to be perceived by most
employees as having long-term benefits. These kinds of stressors are called challenge stressors, or
stressful demands that people tend to perceive as opportunities for learning, growth, and achieve-
ment.11 Although challenge stressors can be exhausting, they often trigger positive emotions such
as pride and enthusiasm. Figure 5-1 lists a number of hindrance and challenge stressors, some of
which are experienced at work and some of which are experienced outside of work.12
WORK HINDRANCE STRESSORS The various roles we fill at work are the source of differ-
ent types of work-related hindrance stressors.13 One type of work-related hindrance stressor is
role conflict, which refers to conflicting expectations that other people may have of us.14 As an
example of role conflict that occurs from incompatible demands within a single role that a person
may hold, consider the job of a call center operator. People holding these jobs are expected to
communicate with as many people as possible over a given time period. The expectation is that
the call center operator will spend as little time as possible with the people on the other end of the
line. At the same time, however, operators are also expected to be responsive to the questions and
concerns raised by the people they talk with. Because effectiveness in this aspect of the job may
require a great deal of time, call center operators are put in a position in which they simply cannot
meet both types of expectations. For an interesting example of role conflict and its consequences,
see our OB on Screen feature.
Role ambiguity refers to a lack of information about what needs to be done in a role, as well
as unpredictability regarding the consequences of performance in that role.15 Employees are
sometimes asked to work on projects for which they’re given very few instructions or guidelines
about how things are supposed to be done. In these cases, employees may not know how much
money they can spend on the project, how long it’s supposed to take, or what exactly the finished
product is supposed to look like. Role ambiguity is often experienced among new employees
who haven’t been around long enough to receive instructions from supervisors or observe and
model the role behaviors of more senior colleagues. Students sometimes experience role ambigu-
ity when professors remain vague about particular course requirements or how grading is going to
5.2
What are the four main
types of stressors?
Final PDF to printer
129C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 129 10/11/17 08:42 AM
OB ON SCREEN
DEEPWATER HORIZON
We a big company . . . millions of moving parts . . . thousands upon thousands of people. We all
work very hard to ensure that all those people and all those moving parts are functioning prop-
erly as a means to an end, a very profitable end for all of us.
With those words, BP executive Donald Vidrine (John Malkovich) provides not so subtle pres-
sure on an offshore oil rig worker to skirt safety procedures, in the reality-based movie Deepwater
Horizon (Dir. Peter Berg, Summit Entertainment and Participant Media, 2016). Located in the
Gulf of Mexico, 41 miles off the coast of Louisiana, a Deepwater Horizon crew had just sealed off
an exploratory well with a concrete cap so that the well could be exploited later by BP. There was
a crew changeover, and the new crew expressed concerns regarding the previous crew’s failure to
complete some tests on the concrete. Soon afterwards, there was an eruption of mud and methane
gas through the concrete cap and drilling equipment. Explosions and fire ensued, destroying the
rig, killing 11 crew members, and creating the largest marine oil spill in U.S. history.
©Moviestore collection Ltd/Alamy
Although the incident was likely caused by a constellation of factors and poor decisions on the
part of several parties, the film portrays role conflict as a primary culprit. Jimmy Harrell (Kurt
Russell) was the ranking manager aboard Transocean’s Deepwater Horizon, which was being
leased by BP for oil exploration. On the one hand, Harrell understood that he was responsible for
the safety of the crew and his employer’s rig. He was unsure about the integrity of the concrete
cap, and he wanted to conduct some testing before granting permission to the crew to move
onto the next phase of operations. On the other hand, Vidrine reminded Harrell that he and his
company were working for BP and should have BP’s best interest in mind. Vidrine emphasized to
Harrell that the well was behind schedule due to problems on Deepwater Horizon, and that fur-
ther testing would create even more delays and would cost both companies more money. Although
a compromise was reached, inconsistencies in the test results were not scrutinized sufficiently,
and the rest is history.
be performed. In such cases, the class becomes stressful because it’s not quite clear what it takes
to get a good grade.
Role overload occurs when the number of demanding roles a person holds is so high that the
person simply cannot perform some or all of the roles effectively.16 Role overload as a source of
stress is becoming very prevalent for employees in many different industries, and in fact, studies
have shown that this source of stress is more prevalent than both role conflict and role ambiguity.17
For example, the workload for executives and managers who work in investment banking, consult-
ing, and law is so high that 80-hour workweeks are becoming the norm.18 Although this trend may
Final PDF to printer
130 C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 130 10/11/17 08:42 AM
not be surprising to some of
you, people holding these jobs
also indicate that they would
not be able to effectively com-
plete most of the work that’s
required of them, even if they
worked twice as many hours.
One final type of work-
related hindrance stressor,
daily hassles, refers to the
relatively minor day-to-day
demands that get in the way of
accomplishing the things that
we really want to accomplish.19
Examples of hassles include
having to deal with unneces-
sary paperwork, office equip-
ment malfunctions, annoying interactions with abrasive coworkers, and useless communications.
Although these examples of daily hassles may seem relatively minor, taken together, they can be
extremely time-consuming and stressful. Indeed, according to one survey, 40 percent of executives
spend somewhere between a half-day and a full day each week on communications that are not
useful or necessary.20
WORK CHALLENGE STRESSORS One type of work-related challenge stressor is time pressure—
a strong sense that the amount of time you have to do a task is not quite enough.21 Although most
people appraise situations with high time pressure as rather stressful, they also tend to appraise
these situations as more challenging than hindering. Time pressure demands tend to be viewed
as something worth striving for because success in meeting such demands can be intrinsically
satisfying. As an example of this positive effect of high time pressure, consider Michael Jones, an
architect at a top New York firm. His job involves overseeing multiple projects with tight dead-
lines, and as a result, he has to work at a hectic pace. Although Jones readily acknowledges that
his job is stressful, he also believes that the outcome of having all the stress is satisfying. Jones is
able to see the product of his labor over the Manhattan skyline, which makes him feel like he’s a
part of something.22
Work complexity refers to the degree to which the requirements of the work—in terms of
knowledge, skills, and abilities—tax or exceed the capabilities of the person who is responsible
for performing the work.23 As an example of work complexity, consider the nature of employee
development practices that organizations use to train future executives and organizational lead-
ers. In many cases, these practices involve giving people jobs that require skills and knowledge
that the people do not yet possess. A successful marketing manager who is being groomed for an
executive-level position may, for example, be asked to manage a poorly performing production
facility with poor labor relations in a country halfway around the world. Although these types of
developmental experiences tend to be quite stressful, managers report that being stretched beyond
their capacity is well worth the associated discomfort.24
Work responsibility refers to the nature of the obligations that a person has toward others.25
Generally speaking, the level of responsibility in a job is higher when the number, scope, and
importance of the obligations in that job are higher. As an example, the level of work responsi-
bility for an air traffic controller, who may be accountable for the lives of tens of thousands of
people every day, is very high.26 Controllers understand that if they make an error while directing
an aircraft—for example, saying “turn left” instead of “turn right”—hundreds of people can die in
an instant. Although controller errors that result in midair collisions and crashes are extremely
rare, the possibility weighs heavily on the minds of controllers, especially after they lose “the pic-
ture” (controller jargon for the mental representation of an assigned airspace and all the aircraft
within it) due to extreme workloads, a loss of concentration, or equipment malfunctions. As with
In addition to the role
conflict created in trying to
balance responsiveness
to customers with high call
volume, call center opera-
tors also experience daily
hassles. They have to deal
with poor connections,
language difficulties, rude-
ness, and questions for
which they are ill prepared
to answer.
©Terry Vine/Blend Images LLC
Final PDF to printer
131C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 131 10/11/17 08:42 AM
people’s reactions to time pressure and work complexity, people tend to evaluate demands associ-
ated with high responsibility as both stressful and potentially positive.
NONWORK HINDRANCE STRESSORS Although the majority of people in the United States
spend more time at the office than anywhere else,27 there are a number of stressful demands out-
side of work that have implications for managing behavior in organizations.28 In essence, stressors
experienced outside of work may have effects that “spill over” to affect the employee at work.29 One
example of nonwork hindrance stressors is work–family conflict, a special form of role conflict in
which the demands of a work role hinder the fulfillment of the demands of a family role (or vice
versa).30 More generally, work–family conflict can be thought of as something that upsets the bal-
ance or our work and nonwork lives.31 We most often think of cases in which work demands hinder
effectiveness in the family context, termed “work to family conflict.” For example, a store manager
who has to deal with lots of hindrances at work may have trouble switching off the frustration after
arriving home, and as a consequence, become irritable and impatient with family and friends. How-
ever, work–family conflict can occur in the other direction as well. For example, “family to work
conflict” would occur if a salesperson experiencing the stress of marital conflict comes to work
harboring emotional pain and negative feelings, which makes it difficult to interact with customers
effectively. Although these examples illustrate how work–family conflict can have negative conse-
quences, it is also important to recognize that these negative consequences can, in turn, create even
more work–family conflict.32 For example, the store manager who becomes impatient with family
and friends due to hindrances at work may get into stressful conflicts at home, which in turn, may
makes it even more difficult to deal with hindrances at work the next day. We should also note that
although there are many benefits to having an active and well-rounded life, it’s important to recog-
nize that both work to family conflict and family to work conflict tend to be higher for employees
who are strongly embedded in their work organizations and their communities.33
Nonwork hindrance stressors also come in the form of negative life events.34 Research has
revealed that a number of life events are perceived as quite stressful, particularly when they result
in significant changes to a person’s life.35 Table 5-2 provides a listing of some commonly experi-
enced life events, along with a score that estimates how stressful each event is perceived to be. As
the table reveals, many of the most stressful life events do not occur at work. Rather, they include
family events such as the death of a spouse or close family member, a divorce or marital separa-
tion, a jail term, or a personal illness. These events would be classified as hindrance stressors
because they hinder the ability to achieve life goals and are associated with negative emotions.
A third type of nonwork hindrance stressor is financial uncertainty. This type of stressor refers
to conditions that create uncertainties with regard to the loss of livelihood, savings, or the ability to
pay expenses. This type of stressor is highly relevant during recessions or economic downturns.
The job of an air traffic
controller is stressful
because of the challenging
demands. In particular, air
traffic controllers know
that during each shift they
work, they’ll be responsible
for ensuring that thousands
of people arrive at their
destinations safely and on
time.
©Monty Rakusen/Getty Images
Final PDF to printer
132 C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 132 10/11/17 08:42 AM
TABLE 5-2 Stressful Life Events
LIFE EVENT
STRESS
SCORE LIFE EVENT
STRESS
SCORE
Death of a spouse 100 Trouble with in-laws 29
Divorce 73 Outstanding achievement 28
Marital separation 65 Begin or end school 26
Jail term 63 Change in living conditions 25
Death of close family member 63 Trouble with boss 23
Personal illness 53 Change in work hours 20
Marriage 50 Change in residence 20
Fired at work 47 Change in schools 20
Marital reconciliation 45 Change in social activities 18
Retirement 45 Change in sleeping habits 16
Pregnancy 40 Change in family get-togethers 15
Gain of new family member 39 Change in eating habits 15
Death of close friend 37 Vacations 13
Change in occupation 36 The holiday season 12
Child leaving home 29 Minor violations of the law 11
Source: Adapted from T.H. Holmes and R.H. Rahe, “The Social Re-Adjustment Rating Scale,” Journal of Psychosomatic
Research 11 (1967), pp. 213–18.
When people have concerns about losing their jobs, homes, and life savings because of economic
factors that are beyond their control, it’s understandable why nearly half of the respondents to a
recent survey indicated that stress was making it hard for them to do their jobs.36
NONWORK CHALLENGE STRESSORS Of course, the nonwork domain can be a source of
challenge stressors as well.37 Family time demands refer to the time that a person commits to
participate in an array of family activities and responsibilities. Specific examples of family time
demands include time spent involved in family pursuits such as traveling, attending social events
and organized activities, hosting parties, and planning and making home improvements. Exam-
ples of personal development activities include participation in formal education programs, music
lessons, sports-related training, hobby-related self-education, participation in local government, or
volunteer work. Finally, Table 5-2 includes some positive life events that are sources of nonwork
challenge stressors. For example, marriage, the addition of a new family member, and graduating
from school are stressful in their own way. However, each is associated with more positive, rather
than negative, emotions.
H OW D O P E O P L E C O P E W I T H ST R E S S O R S ?
According to the transactional theory of stress, after people appraise a stressful demand, they ask
themselves, “What should I do?” and “What can I do?” to deal with this situation. These questions,
which refer to the secondary appraisal shown in Figure 5-1, center on the issue of how people cope
with the various stressors they face.38 Coping refers to the behaviors and thoughts that people use
to manage both the stressful demands they face and the emotions associated with those stressful
demands.39 As Table 5-3 illustrates, coping can involve many different types of activities, and these
activities can be grouped into four broad categories based on two dimensions.40 The first dimen-
sion refers to the method of coping (behavioral versus cognitive), and the second dimension refers
to the focus of coping (problem solving versus regulation of emotions).
5.3
How do individuals cope
with stress?
Final PDF to printer
133C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 133 10/11/17 08:42 AM
The first part of our coping definition highlights the idea that methods of coping can be catego-
rized on the basis of whether they involve behaviors or thoughts. Behavioral coping involves the set
of physical activities that are used to deal with a stressful situation.41 In one example of behavioral
coping, a person who is confronted with a lot of time pressure at work might choose to cope by
working faster. In another example, an employee who has several daily hassles might cope by
avoiding work—coming in late, leaving early, or even staying home. As a final example, employees
often cope with the stress of an international assignment by returning home from the assignment
prematurely. As our OB Internationally feature illustrates, international assignments are becom-
ing increasingly prevalent, and the costs of these early returns to organizations can be significant.
In contrast to behavioral coping, cognitive coping refers to the thoughts that are involved in try-
ing to deal with a stressful situation.42 For example, the person who is confronted with an increase
in time pressure might cope by thinking about different ways of accomplishing the work more effi-
ciently. As another example of cognitive coping, employees who are confronted with daily hassles
might try to convince themselves that the hassles are not that bad after all, perhaps by dwelling on
less annoying aspects of the daily events.
Whereas the first part of our coping definition refers to the method of coping, the second part
refers to the focus of coping—that is, does the coping attempt to address the stressful demand
or the emotions triggered by the demand?43 Problem-focused coping refers to behaviors and
cognitions intended to manage the stressful situation itself.44 To understand problem-focused
coping, consider how the people in the previous paragraphs coped with time pressure. In the
first example, the person attempted to address the time pressure by working harder, whereas
in the second example, the person thought about a strategy for accomplishing the work more
efficiently. Although the specific coping methods differed, both of these people reacted to the
time pressure similarly, in that they focused their effort on meeting the demand rather than try-
ing to avoid it.
In contrast to problem-focused coping, emotion-focused coping refers to the various ways in which
people manage their own emotional reactions to
stressful demands.45 The reactions to the daily
hassles that we described previously illustrate two
types of emotion-focused coping. In the first exam-
ple, the employee used avoidance and distancing
behaviors to reduce the emotional distress caused
by the stressful situation. In the second example,
the employee reappraised the demand to make
it seem less stressful and threatening. Although
people may be successful at changing the way
different situations are construed to avoid feeling
unpleasant emotions, the demand or problem that
initially triggered the appraisal process remains.
TABLE 5-3 Examples of Coping Strategies
PROBLEM-FOCUSED EMOTION-FOCUSED
Behavioral
Methods
• Working harder
• Seeking assistance
• Acquiring additional resources
• Engaging in alternative activities
• Seeking support
• Venting anger
Cognitive
Methods
• Strategizing
• Self-motivating
• Changing priorities
• Avoiding, distancing, and ignoring
• Looking for the positive in the negative
• Reappraising
Source: Adapted from J.C. Latack and S.J. Havlovic, “Coping with Job Stress: A Conceptual Evaluation Framework for
Coping Measures,” Journal of Organizational Behavior 13 (1992), pp. 479–508.
Although avoidance and
distancing behaviors may
reduce the emotional
distress one feels, these
strategies do not help
manage the demand that’s
causing the stress.
©Manchan/Getty Images
Final PDF to printer
134 C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 134 10/11/17 08:42 AM
The number of expatriates, or employees who are sent abroad to work for their organization, has
increased recently. In one survey, for example, 47 percent of the companies reported an increase
in the number of expatriate assignments over the previous year, and 54 percent projected increases
in these assignments in the following year. This survey also indicated that more than half of all
employees sent abroad expected their assignment to last between one and three years. Unfor-
tunately, a significant number of expatriate assignments do not succeed because the employee
returns home earlier than planned. In fact, up to 40 percent of all American expatriates return
home early, and it has been estimated that each early return costs the host organization approxi-
mately $100,000. Of course, a second way that international assignments fail is when the expatri-
ate performs at an unsatisfactory level.
One key factor that influences the commitment and effectiveness of expatriates is how they
handle the stress of being abroad. Expatriates who experience more stress as a result of cultural,
interpersonal, or job factors tend to be less satisfied with their assignment, more likely to think
about leaving their assignment early, and more likely to perform at subpar levels. One practice that
could prove useful in managing expatriate stress is cross-cultural training, which focuses on help-
ing people appreciate cultural differences and interacting more comfortably with the host-country
nationals. Unfortunately, this type of training isn’t offered as frequently as you might think.
Surveys suggest that many U.S. companies offer no formal cross-cultural training at all. Even when
training is offered, it tends to focus more on language skills than on cultural understanding and
interaction skills. Given that the number of expatriate assignments is on the rise, organizations
might be well served if they increased emphasis on training in these types of skills so that their
expatriates are better able to cope with the stress from being abroad.
OB INTERNATIONALLY
Sources: P. Bhaskar-Shrinivas, D.A. Harrison, M.A. Shaffer, and D.M. Luk, “Input-Based and Time-Based Models of
International Adjustment: Meta-Analytic Evidence and Theoretical Extensions,” Academy of Management Journal 48
(2005), pp. 257–81; J.S. Black, M. Mendenhall, and G Oddou, “Toward a Comprehensive Model of International Adjust-
ment: An Integration of Multiple Theoretical Perspectives,” Academy of Management Review 16 (1991), pp. 291–317; M.E.
Mendenhall, T.M. Kulmann, G.K. Stahl, and J.S. Osland, “Employee Development and Expatriate Assignments,” Black-
well Handbook of Cross-Cultural Management, ed. M.J. Gannon and K.L. Newman (Malden, MA: Blackwell, 2002),
pp. 155–84; and Global Relocation Trends, 2005 Survey Report, GMAC Global Relocation Services, Woodridge, IL,
2006, http://www.gmacglobalrelocation.com/insight_support/global_relocation.asp.
Of course, the coping strategy that’s ultimately used has important implications for how effec-
tively people can meet or adapt to the different stressors that they face. In the work context,
for example, a manager would most likely want subordinates to cope with the stress of a heavy
workload by using a problem-focused strategy—working harder—rather than an emotion-focused
strategy—leaving work several hours early to create distance from the stressor. Of course, there are
some situations in which emotion-focused coping may be functional for the person. As an exam-
ple, consider someone who repeatedly fails to make it through the auditions for the TV show The
Voice, despite years of voice lessons and countless hours of practice. At some point, if he did not
have the capability to cope emotionally—perhaps by lowering his aspirations—his self-esteem could
be damaged, which could translate into reduced effectiveness in other roles that he fill.
How do people choose a particular coping strategy? One factor that influences this choice is
the set of beliefs that people have about how well different coping strategies can address different
demands. In essence, people are likely to choose the coping strategy they believe has the highest
likelihood of meeting the demand they face. For example, successful students may come to under-
stand that the likelihood of effectively coping with demanding final exams is higher if they study
doubt
Final PDF to printer
135C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 135 10/11/17 08:42 AM
hard rather than trying to escape from the situation by going out until 3:00 a.m. The choice also
depends on the degree to which people believe that they have what it takes to execute the coping
strategy effectively. Returning to the previous example, if students have already failed the first two
exams in the course, despite trying hard, they may come to believe that a problem-focused coping
strategy won’t work. In this situation, because students may feel helpless to address the demand
directly, an emotion-focused coping strategy would be more likely.
Another critical factor that determines coping strategy choice is the degree to which people
believe that a particular strategy gives them some degree of control over the stressor. If people
believe that a demand can be addressed with a problem-focused coping strategy and have confi-
dence that they can use that problem-focused strategy effectively, then they will feel some control
over the situation and will likely use a problem-focused strategy. If people believe that a demand
cannot be addressed with a problem-focused strategy or do not believe they can effectively execute
that strategy, then they’ll feel a lack of control over the situation and will tend to use an emotion-
focused coping strategy.
So what determines how people develop a sense of control? It appears that one important fac-
tor is the nature of the stressful demand itself. In particular, people are likely to feel less control
over a stressor when they appraise it as a hindrance rather than a challenge. Consider one of
the life events in Table 5-2: “Trouble with boss.” This event would most likely be appraised as a
hindrance stressor because it serves to thwart goal achievement and triggers negative emotions. If
you’re like most people, you would want to change the behavior of your boss so that the trouble
would stop and you could get on with your work. However, it’s also likely that you would feel like
you have little control over this situation because bosses are in a position of power, and complain-
ing to your boss’s boss might not be an option for you. The anxiety and hopelessness triggered by
the situation would further erode any sense of control over the situation, likely leading to emotion-
focused coping.46
T H E E X P E R I E N C E O F ST R A I N
Earlier in this chapter, we defined strain as the negative consequences associated with stress. But
how exactly does stress cause strain? Consider the case of Naomi Henderson, the CEO of RIVA,
a Rockville, Maryland–based market research firm. The job of CEO is quite demanding, and
Henderson found herself working 120 hours a week to cope with the heavy workload. One night
she woke up to go to the bathroom and found that she literally could not move—she was paralyzed.
After she was rushed to the emergency room, the doctor told Henderson and her husband that
her diagnosis was stress. The doctor recommended rest in bed for 14 hours a day for six weeks.47
Although this example may seem extreme to you, the demands of many managerial and executive-
level jobs are often excessive,48 and the negative health consequences that result are fairly predict-
able. In fact, if you’ve ever been in a situation in which you’ve experienced heavy stress for more
than a couple of days, you can probably appreciate the toll that stress can take on you. Although
people react to stress differently, you may have felt unusually exhausted, irritable, and achy. What
might be surprising to you is that the mechanism within your body that gives you the ability to
function effectively in the face of stressful demands is the same mechanism that ends up causing
you these problems. So what is this mechanism?
Essentially, the body has a set of responses that allow it to adapt and function effectively in
the face of stressful demands, but if the stressful demands do not ramp down or the demands
occur too frequently, the body’s adaptive responses become toxic.49 More specifically, when
people are confronted with a stressor, their bodies secrete chemical compounds that increase
their heart rate and blood pressure, as blood is redirected away from vital organs, such as the
spleen, to the brain and skeletal muscles.50 Unfortunately, if the chemicals in the blood remain
elevated because of prolonged or repeated exposure to the stressor, the body begins to break
down, and several negative consequences are set into motion. As shown in Figure 5-2, those
negative consequences come in three varieties: physiological strains, psychological strains, and
behavioral strains.51
Physiological strains that result from stressors occur in at least four systems of the human body.
First, stressors can reduce the effectiveness of the body’s immune system, which makes it more
Final PDF to printer
136 C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 136 10/11/17 08:42 AM
FIGURE 5-2 Examples of Strain
Source: Adapted from R.L. Kahn and P. Byosiere. “Stress in Organizations.” Handbook of Industrial and Organizational
Psychology, Vol. 4, ed. M.D. Dunnette; J.M.R. Hourgh, and H.C. Triandis. Palo Alto, CA: Consulting Psychologists Press,
1992, pp. 517–650.
STRESS
Physiological
Strains
(illness, high blood pressure,
coronary artery disease,
headaches, back pain,
stomachaches)
Psychological
Strains
(depression, anxiety,
irritability, forgetfulness,
inability to think clearly,
reduced confidence,
burnout)
Behavioral
Strains
(alcohol and drug use,
teeth grinding, compulsive
behaviors, overeating)
difficult for the body to ward off illness and infection. Have you ever noticed that you’re more
likely to catch a cold during or immediately after final exam week? Second, stressors can harm the
body’s cardiovascular system, cause the heart to race, increase blood pressure, and create coro-
nary artery disease. Third, stressors can cause problems in the body’s musculoskeletal system.
Tension headaches, tight shoulders, and back pain have all been linked to a variety of stressors.
Fourth, stressors cause gastrointestinal system problems. Symptoms of this type of strain include
stomachaches, indigestion, diarrhea, and constipation.52
Although you might be tempted to dismiss the importance of physiological strains because the
likelihood of serious illness and disease is low for people in their 20s and 30s, research shows that
dismissal may be a mistake. For example, high-pressure work deadlines increase the chance of
heart attack within the next 24 hours by a factor of six.53 So even though your likelihood of suffer-
ing a heart attack may be low, who would want to increase their risk by 600 percent? Furthermore,
the negative physiological effects of stress persist over time and may not show up until far into the
future. One study showed that eye problems, allergic complaints, and chronic diseases could be
attributed to stress measured eight years earlier.54 Finally, researchers have found higher mortality
Final PDF to printer
137C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 137 10/11/17 08:42 AM
rates (yes, the odds of dying)
for employees in stressful jobs
where the demands are high
and where there is very little
discretion or control.55
Psychological strains that
result from stressors include
depression, anxiety, anger, hos-
tility, reduced self-confidence,
irritability, inability to think
clearly, forgetfulness, lack of
creativity, memory loss, and
(not surprising, given the rest
of this list) a loss of sense of
humor.56 You might be tempted
to think of these problems as
isolated incidents; however,
they may reflect a more general psychological condition known as burnout, which can be defined
as the emotional, mental, and physical exhaustion that results from having to cope with stressful
demands on an ongoing basis.57 There are many familiar examples of people who have experi-
enced burnout, and the majority of them illustrate how burnout can lead to a decision to quit a
job or even change careers. As an example, after playing for 17 seasons for the Green Bay Packers,
Brett Favre decided to retire from professional football after leading his team to the NFC champi-
onship game in 2008.58 Favre explained to reporters that he was just tired of all the stress.59 The
pressure of the challenge of winning compelled him to spend an ever-increasing amount of time
preparing for the next game, and over time, this pressure built up and resulted in exhaustion and
reduced commitment. Of course, Favre would un-retire to play for the New York Jets in 2008, only
to re-retire after the season. Favre again un-retired in 2009 and joined the Minnesota Vikings. He
re-retired, for the final time, after the 2010 season. Such changes of heart are not unusual after
someone retires from an exciting job due to burnout. A break from stressors associated with the
work not only gives the person a chance to rest and recharge, but it also provides a lot of free time
to think about the excitement and challenge of performing again.
Finally, in addition to physiological and psychological strains, the stress process can result in
behavioral strains. Behavioral strains are unhealthy behaviors such as grinding one’s teeth at night,
being overly critical and bossy, excessive smoking, compulsive gum chewing, overuse of alcohol,
and compulsive eating.60 Although it’s unknown why exposure to stressors results in these specific
behaviors, it’s easy to see why these behaviors are undesirable both from personal and organiza-
tional standpoints.
AC C O U N T I N G F O R I N D I V I D UA L S I N T H E ST R E S S P R O C E S S
So far in this chapter, we’ve discussed how the typical or average person reacts to different sorts of
stressors. However, we’ve yet to discuss how people differ in terms of how they react to demands.
One way that people differ in their reactions to stress depends on whether they exhibit the Type A
Behavior Pattern. “Type A” people have a strong sense of time urgency and tend to be impatient,
hard-driving, competitive, controlling, aggressive, and even hostile.61 If you walk, talk, and eat at
a quick pace, and if you find yourself constantly annoyed with people who do things too slowly,
chances are that you’re a Type A person. With that said, one way to tell for sure is to fill out the
Type A questionnaire in our OB Assessments feature.
In the context of this chapter, the Type A Behavior Pattern is important because it can influ-
ence stressors, stress, and strains. First, the Type A Behavior Pattern may have a direct influence
on the level of stressors that a person confronts. To understand why this might be true, consider
that Type A persons tend to be hard-driving and have a strong desire to achieve. Because the
behaviors that reflect these tendencies are valued by the organization, Type A individuals receive
“rewards” in the form of increases in the amount and level of work required. In addition, because
5.4
How does the Type A
Behavior Pattern influence
the stress process?
Having started more than
300 games straight, Brett
Favre is well known among
sports fans for his durabil-
ity as a NFL quarterback.
However, his durability
did not mean that he was
immune to the effects of
stress. He retired from foot-
ball three times in the span
of three years, and burnout
played an important role in
these decisions.
©G. Newman Lowrance/AP Images
Final PDF to printer
138 C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 138 10/11/17 08:42 AM
OB ASSESSMENTS
Source: Adapted from R.H. Friedman & R. H. Rosenman, “Association of Specific Overt Behavior Pattern with Blood and
Cardiovascular Findings,” Journal of the American Medical Association 169 (1959), pp. 1286–69.
SCORING AND INTERPRETATION
Sum your answers for the 12 items. If your scores sum up to 60 or above, you might be a Type A
person, which means that you may perceive higher stress levels in your life and be more sensitive
to that stress. If your scores sum up to 36 or below, chances are that you would be considered a
Type B person. This means that you sense less stress in your life and are less sensitive to the stress
that’s experienced.
TYPE A BEHAVIOR PATTERN
Do you think that you’re especially sensitive to stress? This assessment is designed to measure the
extent to which you’re a Type A person—someone who typically engages in hard-driving, competi-
tive, and aggressive behavior. The items below refer to how you feel, think, and behave in differ-
ent situations. Indicate your level of agreement with each item as honestly as possible using the
response scale provided. (Instructors: Assessments on challenge stressors, hindrance stressors,
and strain can be found in the PowerPoints in the Connect Library’s Instructor Resources and in
the Connect assignments for this chapter.)
1
STRONGLY
DISAGREE
2
DISAGREE
3
SLIGHTLY
DISAGREE
4
NEUTRAL
5
SLIGHTLY
AGREE
6
AGREE
7
STRONGLY
AGREE
1. I hate to be late for appointments. _______
2. I’m a very competitive person. _______
3. I anticipate what others are going to say by nodding, and I sometimes inter-
rupt and finish for them.
_______
4. I’m always rushed. _______
5. I’m impatient when waiting. _______
6. I go “all out” when trying to accomplish something. _______
7. I multitask, and am always thinking about what I have to do next. _______
8. I’m expressive and often gesture when speaking. _______
9. I do most things, even eating and walking, in a hurry. _______
10. I’m a driven person—I work hard and I’m serious about accomplishing my goals. _______
11. I often express feelings like frustration, irritation, and anger. _______
12. I’m very ambitious. _______
Type A people tend to be aggressive and competitive, they may be more prone to interpersonal
conflict. Most of you would agree that conflict with peers and coworkers is an important stressor.
Second, in addition to the effect on stressors, the Type A Behavior Pattern is important because
it influences the stress process itself.62 This effect of the Type A Behavior Pattern is easy to under-
stand if you consider that hard-driving competitiveness makes people hypersensitive to demands
Final PDF to printer
139C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 139 10/11/17 08:42 AM
that could potentially affect
their progress toward their
goal attainment. In essence,
Type A individuals are simply
more likely to appraise demands
as being stressful rather than
being benign.
Third, and perhaps most
important, the Type A Behavior
Pattern has been directly linked
to coronary heart disease63 and
other physiological, psychologi-
cal, and behavioral strains.64
The size of the relationship
between the Type A Behavior
Pattern and these strains is not
so strong as to suggest that if
you’re a Type A person, you should immediately call 911. However, the linkage is strong enough
to suggest that the risk of these problems is significantly higher for people who typically engage in
Type A behaviors.
Another individual factor that affects the way people manage stress is the degree of social
support that they receive. Social support refers to the help that people receive when they’re con-
fronted with stressful demands, and there are at least two major types.65 One type of social support
is called instrumental support, which refers to the help people receive that can be used to address
the stressful demand directly. For example, if a person is overloaded with work, a coworker could
provide instrumental support by taking over some of the work or offering suggestions about how
to do the work more efficiently. A second type of social support is called emotional support. This
type of support refers to the help people receive in addressing the emotional distress that accom-
panies stressful demands. As an example, the supervisor of the individual who is overloaded
with work might provide emotional support by showing interest in the employee’s situation and
appearing to be understanding and sympathetic. As alluded to in these examples, social support
may come from coworkers as well as from supervisors. However, social support also may be pro-
vided by family members and friends outside the context of the stressful demand.66
Similar to the Type A Behavior Pattern, social support has the potential to influence the stress
process in several different ways. However, most research on social support focuses on the ways
that social support buffers the relationship between stressors and strains.67 For example, a supervi-
sor who engages in supportive behaviors may make the same level of stressful demands seem more
fair and less threatening.68 Subordinates of this supervisor, therefore, would tend to experience
less strain than subordinates of another supervisor who does not engage in supportive behaviors.
Moreover, high levels of social support provide a person with instrumental or emotional resources
that are useful for coping with the stressor, which tends to reduce the harmful consequences of the
stressor to that individual. With low levels of social support, the person does not have extra coping
resources available, so the stressor tends to have effects that are more harmful. In essence, this
perspective casts social support as a “moderator” of the relationship between stressors and strains
(recall that moderators are variables that affect the strength of the relationship between two other
variables). In this particular case, the relationship between stressors and strain tends to be weaker
at higher levels of social support and stronger at lower levels of social support. Although not
every research study has found support for the buffering effect of social support,69 the majority of
research evidence has been supportive.70
S U M M A RY: W H Y A R E S O M E E M P LOY E E S M O R E
“ ST R E S S E D” T H A N OT H E R S ?
So what explains why some employees are more stressed than others? As shown in Figure 5-3,
answering that question requires paying attention to the particular stressors the employee is
Social support from friends,
coworkers, and family can
be a big help in managing
stress, even though it often
occurs outside the stress-
causing environment.
©Superstock
Final PDF to printer
140 C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 140 10/11/17 08:42 AM
experiencing, including hindrance and challenge stressors originating in both the work and non-
work domains. However, feeling stressed also depends on how those stressors are appraised and
coped with, and the degree to which physiological, psychological, and behavioral strains are
experienced. Finally, answering the question depends on whether the employee is Type A or Type
B and whether the employee has a high or low amount of social support. Understanding all of
these factors can help explain why some people can shoulder stressful circumstances for weeks
at a time, whereas others seem to be “at the end of their rope” when faced with even relatively
minor job demands.
H O W I M P O R TA N T I S S T R E S S ?
In the previous sections, we described how stressors and the stress process influence strains and,
ultimately, people’s health and well-being. Although these relationships are important to under-
stand, you’re probably more curious about the impact that stressors have on job performance
and organizational commitment, the two outcomes in our integrative model of OB. Figure 5-4
summarizes the research evidence linking hindrance stressors to performance and commitment,
and Figure 5-5 summarizes the research evidence linking challenge stressors to performance and
commitment. It is certainly true that there are important associations between nonwork stressors,
strains, and other important outcomes.71 However, we limit our discussion here to relationships
5.5
How does stress affect job
performance and organiza-
tional commitment?
FIGURE 5-3 Why Are Some Employees More “Stressed” Than Others?
Stressors
Type A
Behavior Pattern
Social
Support
Hindrance Challenge
Work
Nonwork
STRESS Psychological
Strains
Physiological
Strains
Behavioral
Strains
Final PDF to printer
141C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 141 10/11/17 08:42 AM
FIGURE 5-4 Effects of Hindrance Stressors on Performance and Commitment
Hindrance stressors have a weak negative relationship with job performance. People
who experience higher levels of hindrance stressors tend to have lower levels of task
performance. Not much is known about the impact of hindrance stressors on Citizenship
Behavior and Counterproductive Behavior.
N E G A T I V E
N E G A T I V E
Job
Performance
Hindrance
Stressors
Organizational
Commitment
Hindrance
Stressors
Hindrance stressors have a strong negative relationship with Organizational
Commitment. People who experience higher levels of hindrance stressors tend to have
lower levels of A�ective Commitment and Normative Commitment. Relationships with
Continuance Commitment are weaker.
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
Sources: J.A. LePine, N.P. Podsakoff, and M.A. LePine, “A Meta-Analytic Test of the Challenge Stressor–Hindrance
Stressor Framework: An Explanation for Inconsistent Relationships Among Stressors and Performance,” Academy of
Management Journal 48 (2005), pp. 764–75; and N.P. Podsakoff, J.A. LePine, and M.A. LePine, “Differential Challenge
Stressor–Hindrance Stressor Relationships with Job Attitudes, Turnover Intentions, Turnover, and Withdrawal Behavior:
A Meta-Analysis,” Journal of Applied Psychology 92 (2007), pp. 438–54.
with work stressors rather than nonwork stressors, because this is where researchers have focused
the most attention.
Figure 5-4 reveals that hindrance stressors have a weak negative relationship with job perfor-
mance.72 A general explanation for this negative relationship is that hindrance stressors result
in strains and negative emotions that reduce the overall level of physical, cognitive, and emo-
tional energy that people could otherwise bring to their job duties.73 The detrimental effect that
strains have on job performance becomes quite easy to understand when you consider the nature
of the individual strains that we mentioned in the previous section. Certainly, you would agree
that physiological, psychological, and behavioral strains in the form of illnesses, exhaustion, and
drunkenness would detract from employee effectiveness in almost any job context. Additionally,
these strains may be associated with negative emotions and thoughts that trigger counterproduc-
tive work behavior.74
Figure 5-4 also reveals that hindrance stressors have a strong negative relationship with orga-
nizational commitment.75 Why might this be? Well, hindrance stressors evoke strains, which are
generally dissatisfying to people, and as we discussed in the previous chapter, satisfaction has a
strong impact on the degree to which people feel committed to their organization.76 People who
work at jobs that they know are causing them to feel constantly sick and exhausted will likely be
dissatisfied with their jobs and feel less desire to stay with the organization and more desire to
consider alternatives.
Turning now to challenge stressors, the story becomes somewhat different. As shown in
Figure 5-5, challenge stressors have a weak relationship with job performance and a moderate
Final PDF to printer
142 C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 142 10/11/17 08:42 AM
FIGURE 5-5 Effects of Challenge Stressors on Performance and Commitment
Sources: J.A. LePine, N.P. Podsakoff, and M.A. LePine, “A Meta-Analytic Test of the Challenge Stressor–Hindrance
Stressor Framework: An Explanation for Inconsistent Relationships Among Stressors and Performance,” Academy of
Management Journal 48 (2005), pp. 764–75; and N.P. Podsakoff, J.A. LePine, and M.A. LePine, “Differential Challenge
Stressor–Hindrance Stressor Relationships with Job Attitudes, Turnover Intentions, Turnover, and Withdrawal Behavior:
A Meta-Analysis,” Journal of Applied Psychology 92 (2007), pp. 438–54.
Challenge stressors have a weak positive relationship with job performance. People
who experience higher levels of challenge stressors tend to have higher levels of task
performance. Not much is known about the impact of challenge stressors on Citizenship
Behavior and Counterproductive Behavior.
Challenge stressors have a moderate positive relationship with Organizational
Commitment. People who experience higher levels of challenge stressors tend to have
higher levels of A�ective Commitment and Normative Commitment. Relationships with
Continuance Commitment are weaker.
Job
Performance
Challenge
Stressors
Organizational
Commitment
Challenge
Stressors
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
relationship with organizational commitment. However, in contrast to the results for hindrance
stressors, the relationships are positive rather than negative.77 In other words, employees who
experience higher levels of challenge stressors also tend to have higher levels of job performance
and organizational commitment. These relationships stand in sharp contrast with the lower levels
of job performance and organizational commitment that result when employees confront higher
levels of hindrance stressors. So what explains this difference? Although challenge stressors result
in strains, which detract from performance and commitment, they also tend to trigger the type of
positive emotions and problem-focused coping strategies that are characteristic of employees who
are highly engaged in their jobs.78 The net benefits of these positive emotions, problem-focused
coping strategies, and engagement outweigh the costs of the added strain, meaning that chal-
lenge stressors tend to be beneficial to employee performance and commitment when both the
positives and negatives are considered.79 These positive effects of challenge stressors have been
demonstrated for executives,80 employees in lower-level jobs,81 and even students.82 It’s important
to point out, however, that high levels of challenge stressors may have negative consequences that
only become apparent over the long term. People whose jobs are filled with challenge stressors
experience strains that can result in illness, but because they tend to be more satisfied, committed,
and engaged with their jobs, they come to work anyway. This phenomenon, which is referred to as
presenteeism, can result in prolonged illness, as well as the spread of illness, and ultimately a down-
ward spiral of impaired performance and employee health.83 In fact, it may surprise you to learn
that the reductions in productivity that result from presenteeism are even larger than reductions in
productivity that result from employee absenteeism.84
Final PDF to printer
143C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 143 10/11/17 08:42 AM
A P P L I C AT I O N : S T R E S S M A N AG E M E N T
Previously, we described how employee stress results in strains that cost organizations in terms
of reduced employee performance and commitment. However, there are other important costs
to consider that relate to employee health. Most organizations provide some sort of health care
benefits for their employees,85 and all but the smallest organizations pay worker’s compensation
insurance, the rates for which are determined, in part, by the nature of the job and the organiza-
tion’s history of work-related injuries and illnesses. So what role does stress play in these costs?
Well, it turns out that these health-related costs are driven to a great extent by employee stress.
Estimates are that between 60 and 90 percent of all doctor visits can be attributed to stress-related
causes,86 and the cost of providing health care to people who experience high levels of stress
appears to be approximately 50 percent higher than for those who experience lower levels of
stress.87 Statistics from jobs in different industries indicate that the frequency of worker’s compen-
sation claims is dramatically higher when the level of stress on the job is high. As one example,
the frequency of claims was more than 800 percent higher for a copy machine distributor when
the level of stress at the job site was high.88 So what do all these costs mean to you as a student of
organizational behavior or as a manager?
For one thing, the relationship between stress and health care costs means that there may be
huge dividends for organizations that learn how to manage their employees’ stress more effectively.
In fact, surveys indicate that the vast majority of companies in the United States provide benefits, in
one form or another, that are intended to help employees cope with stressful demands and reduce
the associated strains.89 As an example of the lengths some companies go to manage their employ-
ees’ stress and strains, Google provides access to massage, yoga, meditation, and even napping
pods—reclining chairs with egg-shaped caps that fold down to cover the occupant’s head and torso.90
Next, we describe some more general approaches that organizations use to manage employee stress.
AS S E S S M E N T
The first step in managing stress is to assess the level and sources of stress in the workplace.
Although there are many ways to accomplish this type of evaluation, often referred to as a stress
audit, managers can begin by asking themselves questions about the nature of the jobs in their
organization to estimate whether high stress levels may be a problem.91 The first category of ques-
tions might involve the degree to which the organization is going through changes that would likely
increase uncertainty among employees. As an example, a merger between two companies might
increase employees’ uncertainty about their job security and possible career paths. As another
example, employees in an organization that has transitioned to team-based work might be con-
cerned about how their individual performance contributions will be recognized and rewarded.
A second category of questions might center on the work itself. These questions typically focus
on the level and types of stressors experienced by the employees. The third category of questions
could involve the quality of relationships between not only employees but also employees and the
organization. Here, an important question to consider is whether organizational politics play a
large role in administrative decisions.
R E D U C I N G ST R E S S O R S
Once a stress audit reveals that stress may be a problem, the next step is to consider alternative
courses of action. One general course of action involves managing stressors, which may be accom-
plished in one of two ways. First, organizations could try to eliminate or significantly reduce stress-
ful demands. As an example, companies sometimes institute policies that try to limit the demands
faced by their employees. Xonex Relocation, a relocation services company located in New Castle,
Delaware, prohibits employees from working during lunch and eating at their desks, and they struc-
tured workflow so that employees don’t leave the office in the evening with unfinished work hang-
ing over their heads.92 This practice is consistent with research showing that health care workers
5.6
What steps can organiza-
tions take to manage
employee stress?
Final PDF to printer
144 C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 144 10/11/17 08:42 AM
become much less likely to comply with rules regarding hand hygiene (washing their hands before
interacting with a new patient) as demands build up over the course of a long shift and that compli-
ance rates with the same hand hygiene rules increase significantly when longer breaks are given
between shifts.93 As another example of this approach, 19 percent of organizations in one recent sur-
vey used job sharing to reduce role overload and work–family conflict.94 Job sharing doesn’t mean
splitting one job into two but rather indicates that two people share the responsibilities of a single
job, as if the two people were a single performing unit. The assumption underlying the practice is
that “although businesses are becoming 24–7, people don’t.”95 You might be tempted to believe that
job sharing would be most appropriate in lower-level jobs, where responsibilities and tasks are lim-
ited in number and relatively easy to divide. In actuality, job sharing is being used even at the highest
levels in organizations. At Boston–based Fleet Bank, for example, two women shared the position
of vice president for global markets and foreign exchange for six years until their department was
dissolved when Fleet was acquired by Bank of America. During this time, they had one desk, one
chair, one computer, one telephone, one voicemail account, one set of goals, and one performance
review. They each worked 20–25 hours a week and performed the role effectively and seamlessly.96
Another example of how companies reduce stressors is employee sabbaticals. A sabbatical
gives employees the opportunity to take time off from work to engage in an alternative activity.
Estimates indicate that approximately 11 percent of large companies offer paid sabbaticals, and
almost one-third offer unpaid sabbaticals.97 American Express, for example, allows employees
who have 10 years’ tenure to apply for a paid sabbatical of up to six months. These employees
are encouraged to work for a nonprofit organization or school, but the institution cannot have
religious or political affiliations.98 PricewaterhouseCoopers also offers paid sabbaticals for up to
six months for personal growth reasons or for work in social services; this program is available to
employees with as little as two years’ experience.99 Relative to job sharing, sabbaticals allow for
a cleaner break from the stressful routine for a fairly lengthy period of time, so for the period of
the sabbatical, the employee’s stress may be quite low. In fact, some companies are experimenting
with discretionary vacations policies that allow employees to take time off whenever they feel they
need it (and for however long they feel they need it).100 However, because the level of stressors
never changes in the job itself, the employee is likely to experience the same level of stress upon
returning from the sabbatical or vacation.
The use of napping pods
is just one example of how
far companies go to help
manage employee stress
and strains.
©National Geographic Creative/Alamy
Final PDF to printer
145C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 145 10/11/17 08:42 AM
P R OV I D I N G R E S O U R C E S
Although reducing stressors may reduce the overall level of stress that a person experiences,
this approach is likely to be most beneficial when the focus of the effort is on hindrance stress-
ors rather than challenge stressors.101 Hindrance stressors such as role ambiguity, conflict, and
overload not only cause strain, but also decrease commitment and job performance. In contrast,
though challenge stressors such as time pressure and responsibility cause strain, they also tend to
be motivating and satisfying, and as a consequence, they generally are positively related to com-
mitment and performance.
So as a supplement to reducing stressors, organizations can provide resources that help employ-
ees cope with stressful demands.102 One way that organizations provide resources to employees is
through training interventions aimed at increasing job-related competencies and skills. Employees
who possess more competencies and skills can handle more demands before they begin to appraise
these demands as overly taxing or exceeding their capacity. Training that increases employee com-
petencies and skills is also beneficial to the extent that it promotes a sense that the demands are
more controllable, and as we discussed in a previous section, a sense of control promotes problem-
focused coping strategies. As an example of the effectiveness of this type of practice, consider the
results of a study that examined the benefits of a 20-hour training program in which employees
developed skills in stress management, developing a supportive social network, conflict resolu-
tion, communication, and assertiveness. Seven months later, employees in 17 organizations who
went through the training program felt they possessed more resources to cope with stress and had
fewer symptoms of strain than employees who didn’t go through the training program.103
A second way that organizations provide resources to employees so that they can cope more
effectively is through supportive practices that help employees manage and balance the demands
that exist in the different roles they have.104 As an example, most organizations allow employees
to take occasional breaks so that they can rest and recharge their physical, cognitive, and emo-
tional energies. In fact, researchers have found that breaks are better at restoring these energies if
employees are allowed to engage in an activity they prefer and if the break is given earlier in the
shift.105 Although we only have room in this chapter to describe a few more supportive practices,
Table 5-4 lists many examples, as well as the percentage of organizations that were found to use
them in a survey of almost 400 organizations.106
The first supportive practice example in this list is f lextime, which was used by 56 percent
of the organizations in the survey. Organizations that use f lextime give employees some degree
TABLE 5-4 Supportive Practices Used by Organizations
PRACTICE
% OF SMALL
ORGANIZATIONS
% OF MEDIUM
ORGANIZATIONS
% OF LARGE
ORGANIZATIONS
Flextime 57 56 56
Part-time telecommuting 36 33 43
Compressed workweek 27 30 41
Bring child to work if needed 43 25 18
Full-time telecommuting 14 18 24
Lactation program 8 20 28
Onsite child care 1 3 13
Company-supported child
care center
0 1 11
Source: Adapted from M.E. Burke, “2005 Benefits Survey Report,” Society of Human Resource Management, 2005
Final PDF to printer
146 C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 146 10/11/17 08:42 AM
of latitude in terms of which hours they need to be present at the workplace. Flexible working
hours give employees the ability to cope with demands away from work, so they don’t have to
worry about these demands while they’re at work. Researchers have found that while occa-
sional use of f lextime by employees is quite beneficial, chronic reliance on it may interfere
with the completion of work tasks, and perhaps increase stressful demands.107 As another
example, 37 percent of the organizations in the survey allowed telecommuting on a part-time
basis. By providing the opportunity to work at home or some other location with computer
access, employees are put in a better position to cope with demands that might be impossible
to cope with otherwise. Compressed workweeks, which is used by approximately one-third of
all companies in the survey, allows full-time employees to work additional hours on some days
and have shorter days or time off on others. As with f lextime and telecommuting, compressed
workweeks give employees the ability to manage both work and nonwork role demands. We
should also note that practices such as f lextime, telecommuting, and compressed workweeks
not only facilitate stress management but also appear to have other benefits. At companies
such as Xerox, Corning, and UPS, implementing these types of practices resulted in improve-
ments in productivity, innovation, absenteeism, and turnover.108 Moreover, although these
practices have a range of benefits to employees who actually use them, there is also evidence
that their availability alone may be beneficial with regard to enhancing employee job attitudes
and commitment.109
Despite their benefits, companies occasionally decide to end supportive practices during tough
times or transitions when the value of employee interaction is amplified. As an example, when
she was the newly appointed Yahoo CEO, Marissa Mayer banned the practice of telecommuting
to increase employee productivity and encourage richer face-to-face collaboration among employ-
ees.110 Finally, it’s important to note that managers sometimes attribute employees’ use of these
types of practices to low organizational commitment, and when this happens, employees are less
likely to receive pay raises and promotions.111 Perhaps this is why supportive practices are fre-
quently underutilized by employees.112
R E D U C I N G ST R A I N S
As an alternative to managing stressors, many organizations use practices that reduce
strains.113 One type of strain-reducing practice involves training in relaxation techniques, such
as progressive muscle relaxation, meditation, and miscellaneous calming activities like taking
walks, writing in a journal, and deep breathing.114 Although these relaxation techniques differ,
the basic idea is the same—they teach people how to counteract the effects of stressors by engag-
ing in activities that slow the heart rate, breathing rate, and blood pressure.115 As an example of a
relatively simple relaxation technique, consider the recommendation of Herbert Benson, a physi-
cian and president of the Mind/Body Medical Institute in Boston. He suggests that people under
stress should repeat a word, sound, prayer, phrase, or motion for 10–20 minutes once or twice
a day and, during that time, try to completely ignore other thoughts that may come to mind.116
As another example, recall the case of Naomi Henderson, the market research firm CEO who
literally became paralyzed by all the stress in her job. Well, we’re happy to say that Henderson
got better, but she was able to do so only after being treated by a physician who helped her
learn how to reduce her own strains by doing “mental aerobics.” Those exercises involved tak-
ing breaks every hour to stretch and do deep breathing, taking short naps to replenish energy,
and learning how to say no politely to unreasonable demands.117 As a final example, BlueCross
BlueShield of Tennessee has trained approximately one-fifth of its 4,500 employees in the use
of biofeedback technology to reduce the stress associated with financial uncertainties stemming
from the economic downturn.118 The training uses a heart monitor and software to help people
learn how to change their heart rhythms from an irregular pattern to a regular pattern by shift-
ing from an anxious emotional state to a more positive one. Apparently, the training worked: A
preliminary evaluation of the program revealed that those employees who received biofeedback
training reported being less exhausted and anxious than they were before the training.
A second general category of strain-reducing practices involves cognitive–behavioral techniques.
In general, these techniques attempt to help people appraise and cope with stressors in a more
Final PDF to printer
147C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 147 10/11/17 08:42 AM
rational manner.119 To under-
stand what these techniques
involve, think of someone you
know who not only exagger-
ates the level and importance
of stressful demands but also
predicts doom and disaster
after quickly concluding that
the demands simply cannot be
met. If you know someone like
this, you might recommend
cognitive–behavioral training
that involves “self-talk,” a tech-
nique in which people learn
to say things about stressful
demands that reflect rational-
ity and optimism. So, when
confronted with a stressful
demand, this person might be
trained to say, “This demand
isn’t so tough; if I work hard I
can accomplish it.” Cognitive–
behavioral training also typi-
cally involves instruction
about tools that foster effec-
tive coping. So, in addition to
the self-talk, the person might
be trained on how to priori-
tize demands, manage time,
communicate needs, and seek
support.120 As an example
of this type of training, Aus-
tin, Texas–based Freescale
Semiconductor Inc. trains its
6,000 employees how to be “resilient” to stressful situations, such as those that occur when
employees have to interact with team members from other departments in the organization
that do not share the same goals.121 The training teaches employees strategies, such as plan-
ning for the stressful encounter and using social support, which give them the ability to use a
problem-focused approach to coping with their stress. See our OB at the Bookstore feature for
an example of how a cognitive–behavioral approach can be used to train people to become
more resilient to stress.
A third category of strain-reducing practices involves health and wellness programs. For exam-
ple, almost three-quarters of the organizations in one survey reported having employee assistance
programs intended to help people with personal problems such as alcoholism and other addictions.
More than 60 percent of organizations in this survey provided employees with wellness programs
and resources. The nature of these programs and resources varies a great deal from organization
to organization, but in general, they’re comprehensive efforts that include health screening (blood
pressure, cholesterol levels, pulmonary functioning) and health-related courses and information.
Other examples of health and wellness programs intended to reduce strain include smoking ces-
sation programs, onsite fitness centers or fitness center memberships, and weight loss and nutri-
tion programs.122 Today, health and wellness programs that encourage and support exercise are
a growing trend. As an example, Humana, a Fortune 100 health care administration company,
implemented a program that allows the 8,500 employees who work at their corporate headquar-
ters in Louisville, Kentucky, to borrow bikes for free from kiosks located throughout the city.123 As
another example, consider how Grant Thornton, the Chicago–based tax, audit, and advisory firm,
People can learn how to
reduce strain using bio-
feedback technology.
©minemero/Getty Images RF
Final PDF to printer
148 C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 148 10/11/17 08:42 AM
OB AT THE BOOKSTORE
WORK WITHOUT STRESS
by Derek Roger and Nick Petrie (Chicago: McGraw-Hill, 2017).
Defining stress properly as rumination shifts the source of stress to learned and hence change-
able behavior, and change may well be urgently needed.
With those words, authors Roger and Petrie provide their per-
spective on stress and how it might be managed. Their starting
point is the premise that stress equals pressure plus rumination.
When we confront a demand, we experience pressure that signals
the need to increase the level of energy that’s allocated to the
demand. But this pressure only becomes stress when we allow our-
selves to ruminate about it. Rumination simply refers to the contin-
uous rehashing of emotionally laden thoughts while trying to meet
the demand or after the demand has passed. The authors argue
that there is nothing wrong with pressure. It triggers the release
of adrenaline that helps us deal with the demand, but this quickly
dissipates after the demand is removed. When we add rumination
to the pressure, however, the elevation of adrenaline and other
hormones is prolonged, and following from this, harmful strains,
including reduced effectiveness in our work and nonwork roles, are
more likely to occur
Given the idea that stress = pressure + rumination, it’s easy
to appreciate the author’s claim that the key to becoming resilient
to stress is to stop ruminating. Easier said than done, right? Fortunately, the book is full of sug-
gestions that could help us learn how to let things go. For example, the authors suggest that we
should keep things in perspective and not imagine events to be bigger than they really are. As
other examples, the authors argue that we should stay in the present in a way that’s emotionally
detached, and not think about “what ifs,” what it would be like if things turned out differently, and
what other people might think of us. The authors also suggest things that managers can do to help
their employees ruminate less. For example, the use of humor by managers could help employees
keep things in perspective. Managers could also depersonalize their communication and avoid
saying things that give employees something about which to ruminate.
©Roberts Publishing Services
encourages exercise: It spent more than $200,000 helping 230 of its employees train and compete
in a marathon. It also reimburses employees for participation in up to three races or walks per
year, and it even set up running clubs in each of its 50 offices.124 Investments in exercise make
sense because the effects of strains, such as burnout and depression, can be reduced with physical
activity. In particular, exercise can prevent a downward spiral where an employee feels burned out,
and this feeds into depression, which increases burnout, and so on. But, how well do these efforts
actually pay off?125 L.L.Bean initiated a comprehensive wellness program for roughly 5,000 of its
employees that included health assessments, health coaching, and onsite fitness and nutrition
programs, and found that the program had a positive return on investment after the first year and
reduced health care costs by almost $400 per employee.126
Final PDF to printer
149C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 149 10/11/17 08:42 AM
5.1 Stress refers to the psychological response to demands when there’s something at stake for
the individual and coping with these demands would tax or exceed the individual’s capacity
or resources. Stressors are the demands that cause the stress response, and strains are the
negative consequences of the stress response.
5.2 Stressors come in two general forms: challenge stressors, which are perceived as
opportunities for growth and achievement, and hindrance stressors, which are perceived
as hurdles to goal achievement. These two stressors can be found in both work and
nonwork domains.
5.3 Coping with stress involves thoughts and behaviors that address one of two goals:
addressing the stressful demand or decreasing the emotional discomfort associated with
the demand.
5.4 Individual differences in the Type A Behavior Pattern affect how people experience stress
in three ways. Type A people tend to experience more stressors, appraise more demands as
stressful, and are prone to experiencing more strains.
5.5 The effects of stress depend on the type of stressor. Hindrance stressors have a weak
negative relationship with job performance and a strong negative relationship with
organizational commitment. In contrast, challenge stressors have a weak positive
relationship with job performance and a moderate positive relationship with organizational
commitment.
5.6 Because of the high costs associated with employee stress, organizations assess and manage
stress using a number of different practices. In general, these practices focus on reducing or
eliminating stressors, providing resources that employees can use to cope with stressors, or
trying to reduce the strains.
TA K E AWAY S
K E Y T E R M S
• Stress p. 127
• Stressors p. 127
• Strains p. 127
• Transactional theory of stress p. 127
• Primary appraisal p. 127
• Benign job demands p. 128
• Hindrance stressors p. 128
• Challenge stressors p. 128
• Role conflict p. 128
• Role ambiguity p. 128
• Role overload p. 129
• Daily hassles p. 130
• Time pressure p. 130
• Work complexity p. 130
• Work responsibility p. 130
• Work–family conflict p. 131
• Negative life events p. 131
• Financial uncertainty p. 131
• Family time demands p. 132
• Personal development p. 132
• Positive life events p. 132
• Secondary appraisal p. 132
• Coping p. 132
• Behavioral coping p. 133
• Cognitive coping p. 133
• Problem-focused coping p. 133
• Emotion-focused coping p. 133
• Burnout p. 137
• Type A Behavior Pattern p. 137
• Social support p. 139
• Instrumental support p. 139
• Emotional support p. 139
Final PDF to printer
150 C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 150 10/11/17 08:42 AM
5.1 Prior to reading this chapter, how did you define stress? Did your definition of stress reflect
stressors, the stress process, strains, or some combination?
5.2 Describe your dream job and then provide a list of the types of stressors that you would
expect to be present. How much of your salary, if any at all, would you give up to eliminate
the most important hindrance stressors? Why?
5.3 If you had several job offers after graduating, to what degree would the level of challenge
stressors in the different jobs influence your choice of which job to take? Why?
5.4 How would you assess your ability to handle stress? Given the information provided in this
chapter, what could you do to improve your effectiveness in this area?
5.5 If you managed people in an organization in which there were lots of hindrance stressors,
what actions would you take to help ensure that your employees coped with the stressors
using a problem-focused (as opposed to emotion-focused) strategy?
D I S C U S S I O N Q U E S T I O N S
Honeywell has a history of evolving through acquisitions into high growth sectors of related
business, and there is no indication that this trend is slowing. In fact, the company has placed
increased emphasis on software and other businesses that address challenges related to energy,
security, safety, productivity, and urbanization. However, while Honeywell continues to grow
and evolve, the company also faces mounting pressure in some of its businesses and has reacted
with initiatives intended to control costs and increase company performance. As an example,
Honeywell’s Aerospace Division responded to an extended slowdown in the aerospace industry
by laying off employees in 2015 and 2016. The division also implemented weeklong furloughs
(unpaid time off) for employees not involved in manufacturing and sales.
Honeywell also believes that improvements in company performance require teamwork, idea
sharing, and faster decision making, and that this is best accomplished through face-to-face inter-
action among employees. To facilitate this, the company decided to end its telecommuting option
for employees not involved in sales or field service. Honeywell had permitted employees to work
remotely, at home if they wished, for several reasons. First, Honeywell employees are based in
more than a thousand sites in over 70 countries, and they often work on important projects with
other employees who may be located half-way across the world. The projects may be engaging,
but trying to coordinate across time zones can be quite difficult during normal working hours.
Second, telecommuting allows employees to work when and where they feel they are most
productive. Employees who work remotely can chose to avoid the daily commute, office politics
and distractions, and the hassle of accomplishing nonwork demands. Finally, telecommuting is
very popular with millennial engineers and scientists who are comfortable using technology to
collaborate and who have other employment options.
The change in Honeywell’s long-standing policy will be especially difficult for employees who
have built their lives around the flexibility of working remotely. As an example, choices regarding
where to live may haunt employees who now face the prospect of commuting back and forth
to distant Honeywell offices each day. To some Honeywell employees, however, there may be a
bright side to the change in policy. After putting in their 40 hours in the office and commuting
each day, employees may not feel as compelled to deal with work-related issues that come up in
the evenings or on weekends
5.1 Describe how the change in Honeywell’s telecommuting policy likely influenced the types of
work stressors experienced by the company’s employees. How has the change in policy likely
influenced nonwork stressors?
C A S E : H O N E Y W E L L
Final PDF to printer
151C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 151 10/11/17 08:42 AM
5.2 Given the change in stressors resulting from the change in the telecommuting policy, what can
you predict about the commitment and job performance of Honeywell’s employees? Explain.
5.3 Identify steps that Honeywell could take to mitigate the potential for negative consequences
resulting from the change in the company’s telecommuting policy.
Sources: D. DePass, “Honeywell Ends Telecommuting Option,” Star Tribune, October 21, 2016, http://www.startribune.com/
honeywell-ends-telecommuting-option/397929641/; Honeywell, “HealthResource,” http://www51.honeywell.com/hrsites/
healthresource/health_about.html (accessed March 10, 2017); Honeywell, “Our History,” https://www.honeywell.com/who-
we-are/our-history (accessed March 10, 2017); R. Randazzo. “Honeywell Employees Told to Take Furloughs,” The Arizona
Republic, May 25, 2016, http://www.azcentral.com/story/money/business/economy/2016/05/25/honeywell-employees-asked-
take-furloughs/84927666/; and R. Randazzo, “Honeywell Announces More Layoffs,” The Arizona Republic, October 20,
2016, http://www.azcentral.com/story/money/business/jobs/2016/10/20/honeywell-announces-more-layoffs/92490690/.
E X E R C I S E : M A N AG I N G S T R E S S
The purpose of this exercise is to explore ways of managing stress to reduce strain. This exercise
uses groups, so your instructor will either assign you to a group or ask you to create your own
group. The exercise has the following steps:
5.1 One method of managing stress is finding a way to reduce the hindrance stressors encoun-
tered on the job. In your group, describe the hindrance stressors that you currently are expe-
riencing. Each student should describe the two to three most important hindrance stressors
using the accompanying chart. Other students should then offer strategies for reducing or
alleviating these stressors.
School
Time with Friends
Work
Time with Family
Personal
Relaxation
HINDRANCE STRESSORS EXPERIENCED STRATEGIES FOR MANAGING STRESSORS
Role conflict:
Role ambiguity:
Role overload:
Daily hassles:
Work Itself
5.2 Another method of managing stress is to improve work–life balance. The accompanying fig-
ure represents how “waking hours” are divided among five types of activities: school, work,
personal relaxation, time with friends, and time with family. Draw two versions of your own
circle: your waking hours as they currently are and your waking hours as you wish them to
be. Other students should then offer strategies for making the necessary life changes.
Final PDF to printer
152 C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 152 10/11/17 08:42 AM
5.4 Class discussion (whether in groups or as a class) should center on two issues. First, many
of the stress-managing factors, especially in steps 2 and 3, take up precious time. Does this
make them an ineffective strategy for managing stress? Why or why not? Second, consider
your Type A score in the OB Assessments for this chapter. If you are high on Type A, does
that make these strategies more or less important?
Adapted from D. Marcic, J. Seltzer, and P. Vail. “Organizational Behavior: Experiences and Cases”. Cincinnati, OH: South-
Western, 2001.
5.3 A third method of managing stress is improving hardiness—a sort of mental and physical
health that can act as a buffer, preventing stress from resulting in strain. The following table
lists a number of questions that can help diagnose your hardiness. Discuss your answers for
each question; then, with the help of other students, brainstorm ways to increase that hardi-
ness factor.
5.1 Miller, J., and M.
Miller. “Get a Life!”
Fortune, November
28, 2005, pp. 109–24,
www.proquest.com
(March 27, 2007).
5.2 Sauter, S.; L. Murphy;
M. Colligan; N. Swan-
son; J. Hurrell Jr.; F.
Scharf Jr.; R. Sinclair;
P. Grubb; L. Goldenhar;
T. Alterman; J.
Johnston; A. Hamilton;
and J. Tisdale. Stress at
Work, DHHS (NIOSH)
Publication No. 99-101.
Cincinnati, OH: U.S.
Department of Health
and Human Services,
Public Health Service,
Centers for Disease
Control and Preven-
tion, National Institute
for Occupational Safety
and Health, 1999.
5.3 Johnson, S.R., and L.D.
Eldridge. Employee-
Related Stress on the
Job: Sources, Conse-
quences, and What’s
Next, Technical Report
#003. Rochester, NY:
Genesee Survey Ser-
vices, Inc., 2004.
5.4 Lazarus, R.S., and
S. Folkman. Stress,
Appraisal, and Coping.
New York: Springer,
1984.
5.5 Bliese, P.D.; J.R.
Edwards; and S.
Sonnentag. “Stress and
Well-Being at Work: A
Century of Empirical
Trends Reflecting
Theoretical and Societal
Influences.” Journal
of Applied Psychol-
ogy (2017). Advance
online publication.
http://dx.doi.org/10
.1037/apl0000109.
5.6 Lazarus and Folkman,
Stress, Appraisal, and
Coping.
5.7 Ibid.
5.8 LePine, M.A.; Y.
Zhang; E.R. Crawford;
E N D N OT E S
HARDINESS FACTOR STRATEGIES FOR IMPROVING FACTOR
Relaxation: Do you spend enough time read-
ing, listening to music, meditating, or pursuing
your hobbies?
Exercise: Do you spend enough time doing
cardiovascular, strength, and flexibility sorts of
exercises?
Diet: Do you manage your diet adequately by
eating healthily and avoiding foods high in fat?
Final PDF to printer
153C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 153 10/11/17 08:42 AM
and B.L. Rich. “Turn-
ing Their Pain to Gain:
Charismatic Leader
Influence on Follower
Stress Appraisal and
Job Performance.”
Academy of Manage-
ment Journal 59 (2016),
pp. 1036–59.
5.9 LePine, J.A.; M.A.
LePine; and C.L.
Jackson. “Challenge
and Hindrance Stress:
Relationships with
Exhaustion, Motivation
to Learn, and Learn-
ing Performance.”
Journal of Applied
Psychology 89 (2004),
pp. 883–91; LePine,
J.A.; N.P. Podsakoff;
and M.A. LePine. “A
Meta-Analytic Test of
the Challenge Stressor–
Hindrance Stressor
Framework: An
Explanation for Incon-
sistent Relationships
among Stressors and
Performance.” Academy
of Management Journal
48 (2005), pp. 764–75;
and Podsakoff, N.P.;
J.A. LePine; and M.A.
LePine. “Differential
Challenge Stressor–
Hindrance Stressor
Relationships with Job
Attitudes, Turnover
Intentions, Turnover,
and Withdrawal Behav-
ior: A Meta-Analysis.”
Journal of Applied
Psychology 92 (2007),
pp. 438–54.
5.10 Rodell, J.B., and T.A.
Judge. “Can ‘Good’
Stressors Spark ‘Bad’
Behaviors? The Mediat-
ing Role of Emotions in
the Links of Challenge
and Hindrance Stress-
ors with Citizenship
and Counterproductive
Behaviors.” Journal of
Applied Psychology 94
(2009), pp. 1438–51.
5.11 Cavanaugh, M.A.; W.R.
Boswell; M.V. Roehling;
and J.W. Boudreau. “An
Empirical Examination
of Self-Reported Work
Stress among U.S.
Managers.” Journal of
Applied Psychology 85
(2000), pp. 65–74.
5.12 LePine, J.A.; M.A.
LePine; and J.R. Saul.
“Relationships among
Work and Non-Work
Challenge and Hin-
drance Stressors and
Non-Work and Work
Criteria: A Theory of
Cross-Domain Stressor
Effects.” In Research in
Occupational Stress and
Well Being, ed. P.L. Per-
rewé and D.C. Ganster.
San Diego: JAI Press/
Elsevier, 2006, pp.
35–72.
5.13 Kahn, R.; D. Wolfe;
R. Quinn; J. Snoek;
and R.A. Rosenthal.
Organizational Stress:
Studies in Role Conflict
and Ambiguity. New
York: Wiley, 1964; and
Pearce, J. “Bringing
Some Clarity to Role
Ambiguity Research.”
Academy of Manage-
ment Review 6 (1981),
pp. 665–74.
5.14 Kahn et al., Organi-
zational Stress; Rizzo,
J.R.; R.J. House; and
S.I. Lirtzman. “Role
Conflict and Ambiguity
in Complex Organiza-
tions.” Administrative
Science Quarterly 15
(1970), pp. 150–63;
and Ritter, K.J.; R.A.
Matthews; M.T. Ford;
and A.A. Henderson.
“Understanding Role
Stressors and Job
Satisfaction Over Time
Using Adaptation
Theory.” Journal of
Applied Psychology 101
(2016), pp. 1655–69.
5.15 Ibid.
5.16 Kahn et al., Organiza-
tional Stress.
5.17 Narayanan, L.; S.
Menon; and P. Spector.
“Stress in the Work-
place: A Comparison
of Gender and Occu-
pations.” Journal of
Organizational Behavior
20 (1999), pp. 63–74.
5.18 Miller and Miller, “Get
a Life!”
5.19 Chamerlain, K., and
S. Zika. “The Minor
Events Approach to
Stress: Support for the
Use of Daily Hassles.”
British Journal of Psy-
chology 18 (1990), pp.
469–81.
5.20 Mandel, M. “The
Real Reasons You’re
Working So Hard . . .
and What You Can
Do about It.” Business-
Week, October 3, 2005,
pp. 60–67, http://www
.proquest.com (accessed
March 27, 2007).
5.21 Kahn et al., Organiza-
tional Stress.
5.22 O’Connor, A. “Crack-
ing under Pressure? It’s
Just the Opposite for
Some; Sick of Work—
Last of Three Articles:
Thriving under Stress.”
The New York Times,
Section A, Column 5,
September 10, 2004,
Final PDF to printer
154 C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 154 10/11/17 08:42 AM
p. 1, http://www
.proquest.com (accessed
March 27, 2007).
5.23 Schaubroeck, J.; D.C.
Ganster; and B.E.
Kemmerer. “Job Com-
plexity, ‘Type A’ Behav-
ior, and Cardiovascular
Disorder: A Prospective
Study.” Academy of
Management Journal 37
(1994), pp. 426–39.
5.24 McCall, M.W.; M.M.
Lombardo; and A.M.
Morrison. The Lessons
of Experience: How
Successful Executives
Develop on the Job. Lex-
ington, MA: Lexington
Books, 1988.
5.25 Edwards, J.R., and
R.V. Harrison.
“Job Demands and
Worker Health:
Three-Dimensional
Reexamination of the
Relationships between
Person-Environment
Fit and Strain.” Journal
of Applied Psychology
78 (1993), pp. 628–48;
and French, J.R.P. Jr.;
R.D. Caplan; and R.V.
Harrison. The Mecha-
nisms of Job Stress
and Strain. New York:
Wiley, 1982.
5.26 Abrahm, S. “From
Wall Street to Control
Tower.” The New York
Times, March 20, 2010,
http://www.nytimes
.com/2010/03/21/jobs/
21preoccupations.html.
5.27 Neufeld, S. “Work-
Related Stress: What
You Need to Know”
(n.d.), http://healthy-
place.healthology
.com/focus_article
.asp?f5mentalhealth&
c5work_related_stress.
5.28 Hoobler, J.M.; S.J.
Wayne; and G. Lem-
mon. “Bosses’ Percep-
tions of Family–Work
Conflict and Women’s
Promotability: Glass
Ceiling Effects.” Acad-
emy of Management
Journal 52 (2009),
pp. 939–57.
5.29 Crouter, A. “Spillover
from Family to Work:
The Neglected Side
of the Work–Family
Interface.” Human
Relations 37 (1984),
pp. 425–42; and Rice,
R.W.; M.R. Frone; and
D.B. McFarlin. “Work
and Nonwork Conflict
and the Perceived Qual-
ity of Life.” Journal of
Organizational Behavior
13 (1992), pp. 155–68.
5.30 Dahm, P.C.; T.M.
Glomb; C. Flaherty
Manchester; and S.
Leroy. “Work-Family
Conflict and Self-
Discrepant Time
Allocation at Work.”
Journal of Applied
Psychology 100 (2015),
pp. 767–92; Netemeyer,
R.G.; J.S. Boles; and R.
McMurrian. “Develop-
ment and Validation of
Work–Family Conflict
and Family–Work
Conflict Scales.”
Journal of Applied Psy-
chology 81 (1996), pp.
400–10; and Shockley,
K.M., and T.D. Allen.
“Deciding Between
Work and Family: An
Episodic Approach.”
Personnel Psychology 68
(2015), pp. 283–318.
5.31 Wayne, J.H.; M.M.
Butts; W.J. Casper;
and T.D. Allen. “In
Search of Balance: A
Conceptual and Empiri-
cal Integration of
Multiple Meanings of
Work–Family Balance.”
Personnel Psychology 70
(2017), pp. 167–210.
5.32 Nohe, C.; L.L. Meier;
K. Sonntag; and A.
Michel. “The Chicken
or the Egg? A Meta-
Analysis of Panel Stud-
ies of the Relationship
Between Work–Family
Conflict and Strain.”
Journal of Applied
Psychology 100 (2015),
pp. 522–36.
5.33 Ng, T.W.H., and D.C.
Feldman. “The Effects
of Organizational
and Community
Embeddedness on
Work-to-Family and
Family-to-Work Con-
flict.” Journal of Applied
Psychology 97 (2012),
pp. 1233–51.
5.34 Cohen, S.; D.A.
Tyrrell; and A.P. Smith.
“Negative Life Events,
Perceived Stress,
Negative Affect, and
Susceptibility to the
Common Cold.” Jour-
nal of Personality and
Social Psychology 64
(1993), pp. 131–40.
5.35 Holmes, T.H., and
R.H. Rahe. “The Social
Readjustment Rating
Scale.” Journal of
Psychosomatic Research
11 (1967), pp. 213–18;
and U.S. Department
of Health and Human
Services, Office of
the Surgeon General.
“Mental Health: A
Report of the Surgeon
General” (n.d.), http://
www.surgeongeneral.gov/
library/mentalhealth/
home.html.
Final PDF to printer
155C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 155 10/11/17 08:42 AM
5.36 Frauenheim, E., and
J. Marquez. “Reduc-
ing the Fear Factor.”
Workforce Management,
November 18, 2008,
pp. 17–22.
5.37 LePine et al., “Relation-
ships among Work and
Non-Work Challenge
and Hindrance Stress-
ors and Non-Work and
Work Criteria.”
5.38 Lazarus and Folkman,
Stress, Appraisal, and
Coping.
5.39 Folkman, S.; R.S.
Lazarus; C. Dunkel-
Schetter; A. Delongis;
and R.J. Gruen.
“Dynamics of a Stress-
ful Encounter: Cognitive
Appraisal, Coping, and
Encounter Outcomes.”
Journal of Personality
and Social Psychology 50
(1986), pp. 992–1003.
5.40 Latack, J.C., and S.J.
Havlovic. “Coping
with Job Stress: A
Conceptual Evaluation
Framework for Coping
Measures.” Journal
of Organizational
Behavior 13 (1992),
pp. 479–508.
5.41 Ibid.
5.42 Latack and Havlovic,
“Coping with Job
Stress.”
5.43 Kahn et al., Organi-
zational Stress; and
Lazarus and Folkman,
Stress, Appraisal, and
Coping.
5.44 Latack and Havlovic,
“Coping with Job
Stress.”
5.45 Ibid.
5.46 Lazarus, R.S. “Progress
on a Cognitive–
Motivational–Relational
Theory of Emotion.”
American Psychologist
46 (1991), pp. 819–34.
5.47 Daniels, C. “The Last
Taboo: It’s Not Sex.
It’s Not Drinking. It’s
Stress—and It’s Soar-
ing.” Fortune, October
28, 2002, pp. 136–44,
www.proquest.com
(accessed March 27,
2007).
5.48 Miller and Miller, “Get
a Life!”
5.49 Selye, H. The Stress
of Life. New York:
McGraw-Hill, 1976.
5.50 Cannon, W.B. “Stresses
and Strains of Homeo-
stasis.” American Jour-
nal of Medical Science
189 (1935), pp. 1–14;
and Goldstein, D.L.
Stress, Catecholamines,
& Cardiovascular Dis-
ease. New York: Oxford
University Press, 1995.
5.51 Kahn, R.L., and
P. Byosiere. “Stress
in Organizations.” In
Handbook of Industrial
and Organizational Psy-
chology, Vol. 4, ed. M.D.
Dunette; J.M.R. Hough;
and H.C. Triandis. Palo
Alto, CA: Consulting
Psychologists Press,
1992, pp. 517–650.
5.52 Defrank, R.S., and J.M.
Ivancevich. “Stress on
the Job: An Executive
Update.” Academy of
Management Executive
12 (1998), pp. 55–66;
and Haran, C. “Do
You Know Your
Early Warning Stress
Signals?” 2005, http://
abcnews.go.com/
Health/Healthology/
story?id=421825.
5.53 Stöppler, M.C.
“High Pressure Work
Deadlines Raise Heart
Attack Risk,” http://
stress.about.com/
od/heartdissease/a/
deadline.htm (accessed
October 1, 2005).
5.54 Leitner, K., and M.G.
Resch. “Do the Effects
of Job Stressors on
Health Persist over
Time? A Longitudinal
Study with Observa-
tional Stress Measures.”
Journal of Occupational
Health Psychology 10
(2005), pp. 18–30.
5.55 Gonzalez-Mule, E.; and
B. Cockburn. “Worked
to Death: The Relation-
ships of Job Demands
and Job Control with
Mortality.” Personnel
Psychology 70 (2017),
pp. 73–112.
5.56 Defrank and Ivancevich,
“Stress on the Job”; and
Haran, “Do You Know?”
5.57 Pines, A., and D. Kafry.
“Occupational Tedium
in the Social Services.”
Social Work 23 (1978),
pp. 499–507.
5.58 ESPN.com. “Mentally
Tired Favre Tells Pack-
ers His Playing Career
Is Over,” March 4,
2008, http://sports
.espn.go.com/nfl/news/
story?id=3276034.
5.59 Packers.com. “Brett
Favre Retirement Press
Conference Transcript—
March 6,” March 6,
2008, http://packers
.com.
5.60 Defrank and Ivancev-
ich, “Stress on the Job.”
5.61 Friedman, M., and
R.H. Rosenman. Type
Final PDF to printer
156 C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 156 10/11/17 08:42 AM
A Behavior and Your
Heart. New York:
Knopf, 1974.
5.62 Ganster, D.C. “Type
A Behavior and Occu-
pational Stress. Job
Stress: From Theory to
Suggestion.” Journal of
Organizational Behavior
Management 8 (1987),
pp. 61–84.
5.63 Friedman and Rosen-
man, Type A Behavior;
and Yarnold, P.R., and
F.B. Bryant. “A Note
on Measurement Issues
in Type A Research:
Let’s Not Throw Out
the Baby with the Bath
Water.” Journal of Per-
sonality Assessment 52
(1988), pp. 410–19.
5.64 Abush, R., and E.J.
Burkhead. “Job Stress
in Midlife Working
Women: Relationships
among Personality
Type, Job Characteris-
tics, and Job Tension.”
Journal of Counseling
Psychology 31 (1984),
pp. 36–44; Dearborn,
M.J., and J.E. Hastings.
“Type A Personality as
a Mediator of Stress
and Strain in Employed
Women.” Journal
of Human Stress 13
(1987), pp. 53–60; and
Howard, J.H.; D.A.
Cunningham; and P.A.
Rechnitzer. “Role Ambi-
guity, Type A Behavior,
and Job Satisfaction:
Moderating Effects on
Cardiovascular and
Biochemical Responses
Associated with Coro-
nary Risk.” Journal of
Applied Psychology 71
(1986), pp. 95–101.
5.65 Cooper, C.L.; P.J.
Dewe; and M.P.
O’Driscoll. Organiza-
tional Stress. Thousand
Oaks, CA: Sage, 2001.
5.66 Fusilier, M.R.; D.C.
Ganster; and B.T.
Mayes. “Effects of
Social Support, Role
Stress, and Locus of
Control on Health.”
Journal of Management
13 (1987), pp. 517–28.
5.67 Nahum-Shani, I.,
and P.A. Bamberger.
“Explaining the Vari-
able Effects of Social
Support on Work-Based
Stressor-Strain Rela-
tions: The Role of
Perceived Pattern of
Support Exchange.”
Organizational Behavior
and Human Decision
Processes 114 (2011),
pp. 49–63.
5.68 Zhang, Y.; J.A. LePine;
B. R. Buckman; and F.
Wei. “It’s Not Fair . . .
Or Is It? The Role of
Justice and Leadership
in Explaining Work
Stressor–Job Perfor-
mance Relationships.”
Academy of Manage-
ment Journal 57 (2014),
pp. 675–97.
5.69 Jayaratne, S.; T.
Tripodi; and W.A.
Chess. “Perceptions
of Emotional Support,
Stress, and Strain by
Male and Female Social
Workers.” Social Work
Research and Abstracts
19 (1983), pp. 19–27;
Kobasa, S. “Commit-
ment and Coping in
Stress among Lawyers.”
Journal of Personality
and Social Psychology
42 (1982), pp. 707–17;
and LaRocco, J.M., and
A.P. Jones. “Co-Worker
and Leader Support as
Moderators of Stress–
Strain Relationships in
Work Situations.” Jour-
nal of Applied Psychology
63 (1978), pp. 629–34.
5.70 Kahn and Byo-
siere, “Stress in
Organizations.”
5.71 Nohe, C.; L.L. Meier;
K. Sonntag; and A.
Michel. “The Chicken
or the Egg? A Meta-
Analysis of Panel Stud-
ies of the Relationship
between Work-Family
Conflict and Strain.”
Journal of Applied Psy-
chology 100 (2015), pp.
522–36.
5.72 LePine et al., “A Meta-
Analytic Test.”
5.73 Cohen, S. “After
Effects of Stress on
Human Performance
and Social Behavior: A
Review of Research and
Theory.” Psychological
Bulletin 88 (1980), pp.
82–108; and Crawford,
E.R.; J.A. LePine; and
B.L. Rich. “Linking
Job Demands and
Resources to Employee
Engagement and
Burnout: A Theoretical
Extension and Meta-
Analytic Test.” Journal
of Applied Psychology 95
(2010), pp. 834–48.
5.74 Meier, L.L., and P.E.
Spector. “Reciprocal
Effects of Work Stress-
ors and Counterproduc-
tive Work Behavior: A
Five Wave Longitudinal
Study.” Journal of
Applied Psychology 98
(2013), pp. 529–39.
5.75 Podsakoff et al., “Dif-
ferential Challenge
Stressor–Hindrance
Stressor Relationships.”
Final PDF to printer
157C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 157 10/11/17 08:42 AM
5.76 Bedeian, A.G., and
A. Armenakis. “A
Path-Analytic Study
of the Consequences
of Role Conflict and
Ambiguity.” Academy
of Management Journal
24 (1981), pp. 417–24;
and Schaubroeck, J.;
J.L. Cotton; and K.R.
Jennings. “Antecedents
and Consequences
of Role Stress: A
Covariance Structure
Analysis.” Journal of
Organizational Behavior
10 (1989), pp. 35–58.
5.77 LePine et al., “A
Meta-Analytic Test”;
and Podsakoff et al.,
“Differential Challenge
Stressor–Hindrance
Stressor Relationships.”
5.78 Crawford, LePine, and
Rich, “Linking Job
Demands and Resources
to Employee Engage-
ment and Burnout.”
5.79 Ibid.
5.80 Cavanaugh, M.A.; W.R.
Boswell; M.V. Roehling;
and J.W. Boudreau. “An
Empirical Examination
of Self-Reported Work
Stress among U.S.
Managers.” Journal of
Applied Psychology 85
(2000), pp. 65–74.
5.81 Boswell, W.R.; J.B.
Olson-Buchanan; and
M.A. LePine. “The
Relationship between
Work-Related Stress and
Work Outcomes: The
Role of Felt-Challenge
and Psychological
Strain.” Journal of
Vocational Behavior 64
(2004), pp. 165–81.
5.82 LePine et al., “Chal-
lenge and Hindrance
Stress.”
5.83 Myers, L. “Transform-
ing Presenteeism into
Productivity” Workspan,
July 2009, pp. 40–43.
5.84 Miller, S. “Most
Employees Underesti-
mate Health Impact on
Productivity.” HR Maga-
zine, June 2009, p. 20.
5.85 Burke, M.E. “2005 Ben-
efits Survey Report.”
Alexandria, VA: Society
of Human Resource
Management Research
Department, 2005.
5.86 Perkins, A. “Medical
Costs: Saving Money by
Reducing Stress.” Har-
vard Business Review 72
(1994), p. 12.
5.87 Sauter, S.; L. Murphy;
M. Colligan; N. Swan-
son; J. Hurrell Jr.; F.
Scharf Jr.; R. Sinclair; P.
Grubb; L. Goldenhar; T.
Alterman; J. Johnston;
A. Hamilton; and J. Tis-
dale. “Is Your Boss Mak-
ing You Sick?” (n.d.),
http://abcnews.go.com/
GMA/Careers/story?id=
1251346&gma=true.
5.88 Defrank and Ivancev-
ich, “Stress on the Job.”
5.89 Noyce, J. “Help
Employees Manage
Stress to Prevent
Absenteeism, Errors.”
Minneapolis–St. Paul
Business Journal,
August 22, 2003, http://
twincities.bizjournals
.com/twincities/?stories/
2003/08/25/smallb2
.html; and Burke,
“2005 Benefits Survey
Report.”
5.90 Hoffman, J. “Napping
Gets a Nod at the
Workplace.” Bloomberg
Businessweek, August
26, 2010, http://www
.businessweek.com/
magazine/content/10_36/
b4193084949626
.htm; and Yarow, J.
“Googlers Take Naps in
Bizarre Contraption.”
Business Insider SAI,
June 17, 2010, http://
www.businessinsider
.com/google-sleep
-pods-2010-6.
5.91 Defrank and Ivancev-
ich, “Stress on the
Job”; and Cooper, C.L.
“The Costs of Stress
at Work.” The Safety &
Health Practitioner 19
(2001), pp. 24–26.
5.92 Rafter, M. V. “The
Yawning of a New Era.”
Workforce Management,
December 2010, pp. 3–4.
5.93 Hengchen, D.; K.L.
Milkman; D. A. Hof-
mann; and B. R. Staats.
“The Impact of Time
at Work and Time off
from Work on Rule
Compliance: The Case
of Hand Hygiene in
Health Care.” Journal of
Applied Psychology 100
(2015), pp. 846–62.
5.94 Burke, “2005 Benefits
Survey Report.”
5.95 Miller and Miller, “Get
a Life!”
5.96 Ibid.; and Cunningham,
C.R., and S.S. Murray.
“Two Executives, One
Career.” Harvard Busi-
ness Review 83 (February
2005), pp. 125–31.
5.97 Sahadi, J. “The World’s
Best Perk.” CNNMoney
.com, June 13, 2006,
http://money.cnn
.com/2006/06/13/
commentary/everyday/
sahadi/index.htm.
Final PDF to printer
158 C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 158 10/11/17 08:42 AM
5.98 Ibid.
5.99 Ibid.
5.100 Milligan. S. “Greet-
ings from Unlimited
Vacationland.” HR
Magazine, March
(2015), pp. 28–36.
5.101 LePine et al., “A Meta-
Analytic Test”; and
Podsakoff et al.,
“Differential
Challenge Stressor–
Hindrance Stress
Relationships.”
5.102 Hakanen, J.J.; M.C.W.
Peeters; and R.
Perhoniemi. “Enrich-
ment Processes and
Gain Spirals at Work
and at Home: A
3-Year Cross-Lagged
Panel Study.” Journal
of Occupational
and Organizational
Psychology 84 (2011),
pp. 8–30; and Son-
nentag, S., and M.
Frese. “Stress in
Organizations.” In
Comprehensive Hand-
book of Psychology:
Vol. 12, Industrial and
Organizational Psychol-
ogy, ed. W.C. Borman;
D.R. Ilgen, and R.J.
Klimoski. New York:
Wiley, 2003,
pp. 453–91.
5.103 Vuori, J.; S. Toppinen-
Tanner; and P.
Mutanen. “Impacts
of Resource-Building
Group Intervention on
Career Management
and Mental Health in
Work Organizations:
Randomized Con-
trolled Field Trial.”
Journal of Applied
Psychology 97 (2012),
pp. 273–86.
5.104 Allen, T.D.; R.C.
Johnson; K.M.
Kiburz; and K.M.
Shockley. “Work-
Family Conflict
and Flexible Work
Arrangements: Decon-
structing Flexibility.
Personnel Psychol-
ogy 66 (2013), pp.
345–76.
5.105 Hunter, E.M., and
C. Wu. “Give Me a
Better Break: Choos-
ing Workday Break
Activities to Maximize
Resource Recovery.”
Journal of Applied
Psychology 101 (2016),
pp. 302–11.
5.106 Burke, “2005 Benefits
Survey Report.”
5.107 Spieler, I.; S. Scheibe;
C. Stamov-Roßnagel;
and A. Kappas. “Help
or Hindrance? Day-
Level Relationships
Between Flextime
Use, Work–Nonwork
Boundaries, and
Affective Well-Being.”
Journal of Applied
Psychology 102 (2017),
pp. 67–87.
5.108 Defrank and Ivancev-
ich, “Stress on the
Job”; and Austin, N.K.
“Work–Life Paradox.”
Incentive 178 (2004),
p. 18.
5.109 Butts, M.B.; W.J.
Casper; and T.S. Yang.
“How Important Are
Work-Family Support
Policies? A Meta-
Analytic Investigation
of Their Effects on
Employee Outcomes.”
Journal of Applied
Psychology 98 (2013),
pp. 1–25.
5.110 Goudreau, J. “Back to
the Stone Age? New
Yahoo CEO Marissa
Mayer Bans Working
from Home.” Forbes,
http://www.forbes.com/
sites/jennagoudreau/
2013/02/25/
back-to-the-stone-
age-new-yahoo-
ceo-marissa-mayer-
bans-working-from-
home/ (accessed
February 25, 2013).
5.111 Leslie, L.M.; C.
Flaherty Manchester;
T.Y. Park; and S.A.
Mehng. “Flexible
Work Practices: A
Source of Career
Premiums or
Penalties?” Academy of
Management Journal
55 (2012),
pp. 1407–28.
5.112 Mandeville, A.;
J. Halbesleben;
and M. Whitman.
“Misalignment and
Misperception in
Preferences to Utilize
Family-Friendly
Benefits: Implications
for Benefit Utilization
and Work–Family
Conflict.” Personnel
Psychology 69 (2016),
pp. 859–929.
5.113 Murphy, L.R. “Stress
Management in Work
Settings: A Critical
Review of Health
Effects.” American
Journal of Health
Promotion 11 (1996),
pp. 112–35.
5.114 Neufeld, Work-Related
Stress.
5.115 Haran, “ Do You Know?”
5.116 Ibid.
Final PDF to printer
159C H A P T E R 5 Stress
coL27660_ch05_124-159.indd 159 10/11/17 08:42 AM
5.117 Daniels, “The Last
Taboo.”
5.118 Frauenheim and Mar-
quez, “Reducing the
Fear Factor.”
5.119 Sonnentag and
Frese, “Stress in
Organizations.”
5.120 Neufeld, Work-Related
Stress.
5.121 Atkinson. W. “Turning
Stress into Strength.”
HR Magazine, January
2011, pp. 49–52.
5.122 Ibid.; Burke, “2005 Ben-
efits Survey Report.”
5.123 Kvamme, N. “Huma-
na’s Freewheelin’
Program Proves to Be
Good for Business.”
Workspan, August
2008, pp. 75–78.
5.124 Doheny, K. “Going
the Extra Mile.” Work-
force Management,
January 19, 2009,
pp. 27–28.
5.125 Toker, S., and M.
Biron. “Job Burnout
and Depression:
Unraveling Their Tem-
poral Relationship
and Considering the
Role of Physical Activ-
ity.” Journal of Applied
Psychology 97 (2012),
pp. 699–770.
5.126 Sohre, K. “What
Are These Companies
Doing about
Health Care Man-
agement That You
Aren’t?” Workspan,
March 2010,
pp. 22–26.
Final PDF to printer
coL27660_ch06_160-193.indd 160 10/11/17 08:43 AM
6
LEARNING GOALS
6.1 What is motivation?
6.2 What three beliefs help determine work effort, according to expectancy theory?
6.3 What two qualities make goals strong predictors of task performance, according to goal setting
theory?
6.4 What does it mean to be equitably treated according to equity theory, and how do employees
respond to inequity?
6.5 What is psychological empowerment, and what four beliefs determine empowerment levels?
6.6 How does motivation affect job performance and organizational commitment?
6.7 What steps can organizations take to increase employee motivation?
After reading this chapter, you should be able to answer the following questions:
Motivation
INDIVIDUAL
OUTCOMES
INDIVIDUAL
MECHANISMS
INDIVIDUAL
CHARACTERISTICS
ORGANIZATIONAL
MECHANISMS
Organizational
Culture
Organizational
Structure
Teams:
Processes &
Communication
Motivation
Trust, Justice,
& Ethics
Teams:
Characteristics &
Diversity Learning &
Decision Making
Ability
Personality &
Cultural Values
Stress
Leadership:
Power &
Negotiation
Job
Satisfaction
Leadership:
Styles &
Behaviors
Organizational
Commitment
Job
Performance
GROUP
MECHANISMS
Final PDF to printer
coL27660_ch06_160-193.indd 161 10/11/17 08:43 AM
W
hat image pops into your head when you picture
a Google employee? Maybe someone stopping
for a snack and drink from a food kiosk between
rounds of Foosball? Or maybe someone huddled over a
computer, headphones on, late in the evening, writing code?
Judging from the sheer breadth of Google’s products, ser-
vices, and initiatives, it seems clear that the second image
is more prevalent. So, what is it that motivates “Googlers” to
put forth so much effort on the job? Certainly the work they
do is an important factor. Employees are given the freedom
to spend part of their week on projects that interest them.
Moreover, the company’s mission—to organize the world’s
information and make it accessible to all—provides a sense
of purpose for the rank-and-file.
That said, Google’s People Operations group does a
number of things to keep employees motivated. Employees
are given specific, measurable, and ambitious goals each
quarter—termed “OKR’s” (for Objectives and Key Results).
Those OKR’s are shown on the company’s internal website,
right next to an employee’s phone and office number.
Successfully meeting OKR’s then feeds into Google’s
performance evaluation process, which occurs twice a year.
Employees are rated by their managers on a five-point scale
where 1 = needs improvement, 2 = consistently meets
expectations, 3 = exceeds expectations, 4 = strongly
exceeds expectations, and 5 = superb. To ensure that
higher ratings really do go to higher performers, managers
engage in a process called “calibration.” In groups of five to
ten, managers project their employees on a wall and have
a group discussion to ensure that no “grade inflation” (or
“grade deflation”) occurs. The ratings then feed into two
separate conversations: one about skill development and
one about changes to compensation.
Motivational strategies go beyond evaluation and com-
pensation, however. Google’s awards program stresses
experiential rewards, like sending teams to Hawaii, provid-
ing trips to health resorts, or splurging for lavish dinners.
Studies within the company have shown that the memory
of such rewards lingers longer than cash, making them
more satisfying. And employees can even give each other
rewards themselves. The gThanks (“gee-thanks”) software
system allows employees to send public thank you’s to
reward good work. The system even allows employees
to give peers a $175 cash award—with no managerial
approval needed.
GOOGLE
©Jacques Brinon/Getty Images
Final PDF to printer
162 C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 162 10/11/17 08:43 AM
M OT I VAT I O N
Few OB topics matter more to employees and managers than motivation. How many times have
you wondered to yourself, “Why can’t I get myself going today?” Or how many times have you
looked at a friend or coworker and wondered, “Why are they working so slowly right now?” Both
of these questions are asking about “motivation,” which is a derivation of the Latin word for
movement, movere.1 Those Latin roots nicely capture the meaning of motivation, as motivated
employees simply move faster and longer than unmotivated employees. More formally, motivation
is defined as a set of energetic forces that originates both within and outside an employee, initiates
work-related effort, and determines its direction, intensity, and persistence.2 Motivation is a criti-
cal consideration because effective job performance often requires high levels of both ability and
motivation (see Chapter 10 on ability for more discussion of such issues).3
The first part of our motivation definition illustrates that motivation is not one thing but rather
a set of distinct forces. Some of those forces are internal to the employee, such as a sense of pur-
pose or confidence, whereas others are external to the employee, such as the goals or incentives
an employee is given. The next part of that definition illustrates that motivation determines a
number of facets of an employee’s work effort. These facets are summarized in Figure 6-1, which
depicts a scenario in which your boss has given you an assignment to work on. Motivation deter-
mines what employees do at a given moment—the direction in which their effort is channeled.
Every moment of the workday offers choices between task and citizenship sorts of actions or with-
drawal and counterproductive sorts of actions. When it’s 3:00 p.m. on a Thursday, do you keep
working on the assignment your boss gave you, or do you check social networks or surf the web for
a while? Once the direction of effort has been decided, motivation goes on to determine how hard
an employee works—the intensity of effort—and for how long—the persistence of effort. We all have
friends or coworkers who work extremely hard for . . . say . . . 5 minutes. We also have friends or
coworkers who work extremely long hours but always seem to be functioning at half-speed. Nei-
ther of those groups of people would be described as extremely motivated.
6.1
What is motivation?
Photos: Left: ©DutchScenery/Shutterstock; Right: ©Tetra Images/Getty Images
FIGURE 6-1 Motivation and Effort
What are you going to do
right now?
How hard are you going
to work on it?
As hard as you can, or only
at half-speed?
How long are you going
to work on it?
For five hours or five
minutes?
DIRECTION of E�ort INTENSITY of E�ort
MOTIVATION DETERMINES THE . . .
PERSISTENCE of E�ort
Check social networks
Surf the web for a while
The assignment your boss
gave you yesterday
Final PDF to printer
163C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 163 10/11/17 08:43 AM
OB AT THE BOOKSTORE
DEEP WORK
by Cal Newport (New York: Grand Central Publishing, 2016).
Deep work is so important that we might consider it, to use the phrasing of business writer Eric
Barker, “the superpower of the 21st century.”
With those words, Newport highlights the importance of “deep
work”—activities performed in a distraction-free state that truly
push your cognitive abilities. Deep work is practiced by the most
successful writers, coders, inventors, and decision makers. In moti-
vation parlance, it’s indicative of high intensity of effort—not merely
direction or persistence of effort. It’s not just choosing to do some
work, and keeping at it for a while. It’s closing off the outside world
to really “dig deep” into the activity.
Newport argues that deep work has taken on an increased impor-
tance because the contemporary economy demands the ability to
(1) quickly master difficult tasks and (2) produce at an elite level.
Deep work is vital to both. Unfortunately, deep work is also becom-
ing more rare. The constant connectivity created by technology and
the unmeasurable nature of some knowledge work has increased
“shallow work”—noncognitively demanding, logistical tasks often
performed while distracted. Responding to e-mails, doing Internet
searches, and filling out reports are examples of shallow work. A study by McKinsey suggested
that 60 percent of a knowledge worker’s week is spent on such tasks. Indeed, such examples of
“busyness” have become a proxy for true productivity.
The problem with shallow work is not just that it has little long-term payoff. It’s also that it
rewires our brains in such a way that we become less capable of doing deep work. Deep work
develops a substance called myelin around relevant neurons in the brain, whereas shallow work
degrades that substance. As a result, Newport cautions, “If you’re not comfortable going deep for
extended periods of time, it’ll be difficult to get your performance to the peak levels of quality and
quantity increasingly necessary to thrive professionally. Unless your talent and skills absolutely
dwarf those of your competition, the deep workers among them will outproduce you.” How can we
get better at deep work? Fortunately, Newport offers a number of specific suggestions.
©Roberts Publishing Services
As the opening example illustrates, organizations are always on the lookout for new and better
ways to motivate their employees. These days, however, those discussions are more likely to focus
on a concept called engagement. You can think of engagement as a contemporary synonym, more
or less, for high levels of intensity and persistence in work effort. Employees who are “engaged”
completely invest themselves and their energies into their jobs.4 Outwardly, engaged employees
devote a lot of energy to their jobs, striving as hard as they can to take initiative and get the job
done.5 Inwardly, engaged employees focus a great deal of attention and concentration on their work,
sometimes becoming so absorbed, involved, and interested in their tasks that they lose track of time
(see Chapter 4 on job satisfaction for more discussion of such issues).6 Many companies attempt
to measure engagement on their annual employee surveys, often by assessing factors that are
believed to foster intense and persistent work effort.7 One recent survey by Gallup suggests that only
30 percent of employees are engaged—a percentage that has held fairly steady for a decade.8 Given
those numbers, it’s not surprising that a recent survey of human resources executives indicated an
increased emphasis on improving engagement levels.9 That emphasis is critical, as research suggests
that low levels of engagement can be contagious, crossing over from one employee to another.10 For
more on the importance of such engagement, see our OB at the Bookstore feature.
Final PDF to printer
164 C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 164 10/11/17 08:43 AM
W H Y A R E S O M E E M P LOY E E S M O R E M OT I VAT E D
T H A N OT H E R S ?
There are a number of theories and concepts that attempt to explain why some employees are
more motivated (or engaged) than others. The sections that follow review those theories and con-
cepts in some detail. Most of them are relevant to each of the effort facets described in Figure 6-1.
However, some of them are uniquely suited to explaining the direction of effort, whereas others do
a better job of explaining the intensity and persistence of effort.
E X P E C TA N CY T H E O RY
What makes you decide to direct your effort to work assignments rather than taking a break
or wasting time? Or what makes you decide to be a “good citizen” by helping out a colleague
or attending some optional company function? Expectancy theory describes the cognitive pro-
cess that employees go through to make choices among different voluntary responses.11 Drawing
on earlier models from psychology, expectancy theory argues that employee behavior is directed
toward pleasure and away from pain or, more generally, toward certain outcomes and away from
others.12 How do employees make the choices that take them in the “right direction”? The theory
suggests that our choices depend on three specific beliefs that are based in our past learning
and experience: expectancy, instrumentality, and valence. These three beliefs are summarized in
Figure 6-2, and we review each of them in turn.
Expectancy represents the belief that exerting a high level of effort will result in the success-
ful performance of some task. More technically, expectancy is a subjective probability, ranging
6.2
What three beliefs help
determine work effort,
according to expectancy
theory?
FIGURE 6-2 Expectancy Theory
? ?
E�ort Performance
Outcomes
+ or – ?
Instrumentality: If I
perform well, will I
receive outcomes?
Valence: Will the
outcomes be
satisfying?
Expectancy: If I exert
a lot of e�ort, will I
perform well?
+ or – ?
+ or – ?
+ or – ?
Final PDF to printer
165C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 165 10/11/17 08:43 AM
from 0 (no chance!) to 1 (a mortal lock!) that a specific amount of effort will result in a spe-
cific level of performance (abbreviated E → P). Think of a task at which you’re not particularly
good, such as writing romantic poetry. You may not be very motivated to write romantic poetry
because you don’t believe that your effort, no matter how hard you try, will result in a poem that
“moves” your significant other. As another example, you’ll be more motivated to work on the
assignment described in Figure 6-1 if you’re confident that trying hard will allow you to complete
it successfully.
What factors shape our expectancy for a particular task? One of the most critical factors is
self-efficacy, defined as the belief that a person has the capabilities needed to execute the behav-
iors required for task success.13 Think of self-efficacy as a kind of self-confidence or a task-specific
version of self-esteem.14 Employees who feel more “efficacious” (i.e., self-confident) for a particu-
lar task will tend to perceive higher levels of expectancy—and therefore be more likely to choose to
exert high levels of effort. Why do some employees have higher self-efficacy for a given task than
other employees? Figure 6-3 can help explain such differences.
When employees consider efficacy levels for a given task, they first consider their past
accomplishments—the degree to which they have succeeded or failed in similar sorts of tasks
in the past.15 They also consider vicarious experiences by taking into account their observa-
tions and discussions with others who have performed such tasks.16 Self-efficacy is also dictated
by verbal persuasion because friends, coworkers, and leaders can persuade employees that they
can “get the job done.” Finally, efficacy is dictated by emotional cues, in that feelings of fear or
anxiety can create doubts about task accomplishment, whereas pride and enthusiasm can bol-
ster confidence levels.17 Taken together, these efficacy sources shape analyses of how difficult
the task requirements are and how adequate an employee’s personal and situational resources
will prove to be.18 They also explain the content of most pregame speeches offered by coaches
before the big game; such speeches commonly include references to past victories (past accom-
plishments), pep talks about how good the team can be (verbal persuasion), and cheers to rally
the troops (emotional cues).
FIGURE 6-3 Sources of Self-Efficacy
Sources: Adapted from A. Bandura, “Self-Efficacy: Toward a Unifying Theory of Behavioral Change,” Psychological Review
84 (1977), pp. 191–215; and M.E. Gist and T.R. Mitchell, “Self-Efficacy: A Theoretical Analysis of Its Determinants and
Malleability,” Academy of Management Review 17 (1992), pp. 183–211.
• Past Accomplishments
• Vicarious Experience
• Verbal Persuasion
• Emotional Cues
Analysis of
Task
Requirements
Assessment of
Personal and
Situational
Resources
SELF-
EFFICACY
Final PDF to printer
166 C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 166 10/11/17 08:43 AM
INSTRUMENTALITY Instrumentality represents the belief that successful performance will
result in some outcome(s).19 More technically, instrumentality is a set of subjective probabilities,
each ranging from 0 (no chance!) to 1 (a mortal lock!) that successful performance will bring a
set of outcomes (abbreviated P O). The term “instrumentality” makes sense when you consider
the meaning of the adjective “instrumental.” We say something is “instrumental” when it helps
attain something else—for example, reading this chapter is instrumental for getting a good grade
in an OB class (at least, we hope so!).20 Unfortunately, evidence indicates that many employees
don’t perceive high levels of instrumentality in their workplace. One survey of more than 10,000
employees revealed that only 35 percent viewed performance as the key driver of their pay.21 By
comparison, 60 percent viewed seniority as the key driver.
Although organizations often struggle to foster instrumentality in the best of times, linking
performance to outcomes is even more difficult during an economic downturn. One human
resources consulting firm estimated that 31 percent of organizations froze pay in 2009, with that
estimate falling to 13 percent in 2010 and 2 percent in 2011.22 3M, the St. Paul, Minnesota–based
maker of Post-it notes and Scotch tape, is one example of a firm that is only now unfreezing its
pay. Executives at 3M indicated that pay increases would return after being frozen since 2009.
Summarizes one human resources consultant, “There really is a mindset that you can only do that
for so long.”23 As the economy improves, good performers will begin to expect rewards and may
look elsewhere if their company does not provide them.
VALENCE Valence reflects the anticipated value of the outcomes associated with performance
(abbreviated V).24 Valences can be positive (“I would prefer having outcome X to not having it”),
negative (“I would prefer not having outcome X to having it”), or zero (“I’m bored . . . are we still
talking about outcome X?”). Salary increases, bonuses, and more informal rewards are typical
examples of “positively valenced” outcomes, whereas disciplinary actions, demotions, and termi-
nations are typical examples of “negatively valenced” outcomes.25 In this way, employees are more
motivated when successful performance helps them attain attractive outcomes, such as bonuses,
while helping them avoid unattractive outcomes, such as disciplinary actions.
What exactly makes some outcomes more “positively valenced” than others? In general, out-
comes are deemed more attractive when they help satisfy needs. Needs can be defined as cognitive
groupings or clusters of outcomes that are viewed as having critical psychological or physiologi-
cal consequences.26 Although scholars once suggested that certain needs are “universal” across
Pregame speeches, like
this dramatization of Herb
Brooks’s in Miracle, are
often geared around
bolstering a team’s self-
efficacy. Said Brooks
before the USA took on the
Soviet Union in the 1980
Olympics, “Tonight, we
skate with ’em. Tonight, we
stay with ’em. . . . Tonight,
we are the greatest hockey
team in the world!”
©Buena Vista Pictures/Photofest
Final PDF to printer
167C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 167 10/11/17 08:43 AM
people,27 it’s likely that different people have different “need hierarchies” that they use to evaluate
potential outcomes. Table 6-1 describes many of the needs that are commonly studied in OB.28
The terms and labels assigned to those needs often vary, so the table includes our labels as well as
alternative labels that might sometimes be encountered.
Table 6-2 lists some of the most commonly considered outcomes in studies of motivation. Out-
comes that are deemed particularly attractive are likely to satisfy a number of different needs. For
example, praise can signal that interpersonal bonds are strong (satisfying relatedness needs) while
also signaling competence (satisfying esteem needs). Note also that some of the outcomes in
Table 6-2, such as bonuses, promotions, and praise, result from other people acknowledging suc-
cessful performance. These outcomes foster extrinsic motivation—motivation that is controlled
by some contingency that depends on task performance.29 Other outcomes in the table, such as
enjoyment, interestingness, and personal expression, are self-generated, originating in the mere act
of performing the task. These outcomes foster intrinsic motivation—motivation that is felt when
task performance serves as its own reward.30 Taken together, extrinsic and intrinsic motivation
represent an employee’s “total motivation” level.
You might wonder which of the outcomes in the table are most attractive to employees. That’s
a difficult question to answer, given that different employees emphasize different needs. However,
two things are clear. First, the attractiveness of many rewards varies across cultures. One expert on
cross-cultural recognition programs notes, “Different cultures have different motivators. In fact,
giving a gift card could be extremely insulting because it could be saying that you are bribing them
to do what they already do.”31 Good performance on a project in an American company might
earn a trip to Las Vegas. However, trips to alcohol- and gambling-intensive areas are taboo in parts
of Asia or the Middle East.32 A better award in India would be tickets to a newly released movie or
a moped for navigating in congested areas.33
Second, research suggests that employees underestimate how powerful a motivator pay is to
them.34 When employees rank the importance of extrinsic and intrinsic outcomes, they often put
pay in fifth or sixth place. However, research studies show that financial incentives often have a
stronger impact on motivation than other sorts of outcomes.35 One reason is that money is rel-
evant to many of the needs in Table 6-1. For example, money can help satisfy existence needs by
TABLE 6-1 Commonly Studied Needs in OB
NEED LABEL ALTERNATIVE LABELS DESCRIPTION
Existence Physiological, Safety The need for the food, shelter, safety, and pro-
tection required for human existence.
Relatedness Love, Belongingness The need to create and maintain lasting, posi-
tive, interpersonal relationships.
Control Autonomy, Responsibility The need to be able to predict and control
one’s future.
Esteem Self-Regard, Growth The need to hold a high evaluation of oneself
and to feel effective and respected by others.
Meaning Self-Actualization The need to perform tasks that one cares
about and that appeal to one’s ideals and
sense of purpose.
Sources: Adapted from E.L. Deci and R.M Ryan, “The ‘What’ and ‘Why’ of Goal Pursuits: Human Needs and the Self-
Determination of Behavior,” Psychological Inquiry 11 (2000), pp. 227–68; R. Cropanzano, Z.S. Byrne, D.R. Bobocel, and
D.R. Rupp, “Moral Virtues, Fairness Heuristics, Social Entities, and Other Denizens of Organizational Justice,” Journal
of Vocational Behavior 58 (2001), pp. 164–209; A.H. Maslow, “A Theory of Human Motivation,” Psychological Review 50
(1943), pp. 370–96; and C.P. Alderfer, “An Empirical Test of a New Theory of Human Needs,” Organizational Behavior
and Human Performance 4 (1969), pp. 142–75.
Final PDF to printer
168 C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 168 10/11/17 08:43 AM
helping employees buy food, afford a house, and save for retirement. However, money also conveys
a sense of esteem because it signals that employees are competent and well regarded.36 In fact,
research suggests that people differ in how they view the meaning of money—the degree to which
they view money as having symbolic, not just economic, value.37 The symbolic value of money can
be summarized in at least three dimensions: achievement (i.e., money symbolizes success), respect
(i.e., money brings respect in one’s community), and freedom (i.e., money provides opportunity).38
Who’s more likely to view money from these more symbolic perspectives? Some research suggests
that men are more likely to view money as representing achievement, respect, and freedom than are
women.39 Research also suggests that employees with higher salaries are more likely to view money
in achievement-related terms.40 Younger employees are less likely to view money in a positive light,
relative to older employees.41 Differences in education do not appear to affect the meaning of money,
however.42 How do you view the meaning of money? See our OB Assessments feature to find out.
MOTIVATIONAL FORCE According to expectancy theory, the direction of effort is dictated by
three beliefs: expectancy (E → P), instrumentality (P → O), and valence (V). More specifically,
the theory suggests that the total “motivational force” to perform a given action can be described
using the following formula:43
Motivational Force = E P × Ʃ[(P O) × V ]
The Σ symbol in the equation signifies that instrumentalities and valences are judged with
various outcomes in mind, and motivation increases as successful performance is linked to more
TABLE 6-2 Extrinsic and Intrinsic Outcomes
EXTRINSIC OUTCOMES INTRINSIC OUTCOMES
Pay Enjoyment
Bonuses Interestingness
Promotions Accomplishment
Benefits and perks Knowledge gain
Spot awards Skill development
Praise Personal expression
Job security (Lack of) Boredom
Support (Lack of) Anxiety
Free time (Lack of) Frustration
(Lack of) Disciplinary actions
(Lack of) Demotions
(Lack of) Terminations
Sources: Adapted from E.E. Lawler III and J.L. Suttle, “Expectancy Theory and Job Behavior,” Organizational Behavior
and Human Performance 9 (1973), pp. 482–503; J. Galbraith and L.L. Cummings, “An Empirical Investigation of the
Motivational Determinants of Task Performance: Interactive Effects between Instrumentality–Valence and Motivation–
Ability,” Organizational Behavior and Human Performance 2 (1967), pp. 237–57; E. McAuley, S. Wraith, and T.E. Duncan,
“Self-Efficacy, Perceptions of Success, and Intrinsic Motivation for Exercise,” Journal of Applied Social Psychology 21
(1991), pp. 139–55; and A.S. Waterman, S.J. Schwartz, E. Goldbacher, H. Green, C. Miller, and S. Philip, “Predicting the
Subjective Experience of Intrinsic Motivation: The Roles of Self-Determination, the Balance of Challenges and Skills, and
Self-Realization Values,” Personality and Social Psychology Bulletin 29 (2003), pp. 1447–58.
Final PDF to printer
169C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 169 10/11/17 08:43 AM
OB ASSESSMENTS
SCORING AND INTERPRETATION
• Money as Achievement: Sum up items 1–4. _________
• Money as Respect: Sum up items 5–8. _________
• Money as Freedom: Sum up items 9–12. _________
• Money as Achievement: High = 13 or above. Low = 12 or below.
• Money as Respect: High = 15 or above. Low = 14 or below.
• Money as Freedom: High = 20 or above. Low = 19 or below.
If you scored high on all three dimensions, then you view money as having multiple, noneconomic
meanings. This result means that money is likely to be a powerful motivator for you.
Source: Original items. See T.L. Tang, “The Meaning of Money Revisited,” Journal of Organizational Behavior 13 (1992),
pp. 197–202, for an alternative measure of these concepts.
THE MEANING OF MONEY
How do you view money—what meaning do you attach to it? This assessment will tell you where
you stand on the three facets of the meaning of money—money as achievement, money as respect,
and money as freedom. Answer each question using the response scale provided. Then follow
the instructions to score yourself. (Instructors: Assessments on intrinsic motivation, self-efficacy,
engagement, and equity sensitivity can be found in the PowerPoints in the Connect Library’s
Instructor Resources and in the Connect assignments for this chapter.)
1
STRONGLY
DISAGREE
2
DISAGREE
3
SLIGHTLY
DISAGREE
4
NEUTRAL
5
SLIGHTLY
AGREE
6
AGREE
7
STRONGLY
AGREE
1. Having money means that I’ve achieved something. _______
2. Having money shows that I’ve succeeded. _______
3. Having money is a symbol of accomplishment. _______
4. Having money signifies that I’ve performed well. _______
5. Having money brings respect from others. _______
6. Having money can make others admire you. _______
7. Having money is worthy of others’ esteem. _______
8. Having money can make you more well-regarded. _______
9. Having money brings more freedom. _______
10. Having money can create opportunities. _______
11. Having money provides more autonomy. _______
12. Having money brings independence. _______
Final PDF to printer
170 C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 170 10/11/17 08:43 AM
and more attractive outcomes. Note the significance of the multiplication signs in the formula:
Motivational force equals zero if any one of the three beliefs is zero. In other words, it doesn’t
matter how confident you are if performance doesn’t result in any outcomes. Similarly, it doesn’t
matter how well performance is evaluated and rewarded if you don’t believe you can perform well.
G OA L S E T T I N G T H E O RY
So, returning to the choice shown in Figure 6-1, let’s say that you feel confident you can perform
well on the assignment your boss gave you and that you also believe successful performance will
bring valued outcomes. Now that you’ve chosen to direct your effort to that assignment, two criti-
cal questions remain: How hard will you work, and for how long? To shed some more light on
these questions, you stop by your boss’s office and ask her, “So, when exactly do you need this
done?” After thinking about it for a while, she concludes, “Just do your best.” After returning to
your desk, you realize that you’re still not sure how much to focus on the assignment, or how long
you should work on it before turning to something else.
Goal setting theory views goals as the primary drivers of the intensity and persistence of effort.44
Goals are defined as the objective or aim of an action and typically refer to attaining a specific
standard of proficiency, often within a specified time limit.45 More specifically, the theory argues
that assigning employees specific and difficult goals will result in higher levels of performance than
assigning no goals, easy goals, or “do-your-best” goals.46 Why are specific and difficult goals more
effective than do-your-best ones? After all, doesn’t “your best” imply the highest possible levels of
effort? The reason is that few people know what their “best” is (and even fewer managers can tell
whether employees are truly doing their “best”). Assigning specific and difficult goals gives people
a number to shoot for—a “measuring stick” that can be used to tell them how hard they need to
work and for how long. So if your boss had said, “Have the assignment on my desk by 10:30 a.m.
on Tuesday, with no more than two mistakes,” you would have known exactly how hard to work
and for how long.
Of course, a key question then becomes, “What’s a difficult goal?” Figure 6-4 illustrates the
predicted relationship between goal difficulty and task performance. When goals are easy, there’s
no reason to work your hardest or your longest, so task effort is lower. As goals move from moder-
ate to difficult, the intensity and persistence of effort become maximized. At some point, however,
the limits of a person’s ability get reached, and self-efficacy begins to diminish. Also at that point,
goals move from difficult to impossible, and employees feel somewhat helpless when attempting
to achieve them. In turn, effort and performance inevitably decline. So a difficult goal is one that
stretches employees to perform at their maximum level while still staying within the boundaries
of their ability.
The effects of specific and difficult goals on task performance have been tested in several
hundred studies using many kinds of settings and tasks. A sampling of those settings and tasks is
shown in Table 6-3.47 Overall, around 90 percent of the goal setting studies support the beneficial
effects of specific and difficult goals on task performance.48 Although some of the settings and
tasks shown in the table are unlikely to be major parts of your career (archery, handball, LEGO
construction), others should be very relevant to the readers (and authors!) of this book (managing
and supervision, studying, faculty research). Then again, who wouldn’t want a career in LEGO
construction?
Why exactly do specific and difficult goals have such positive effects? Figure 6-5 presents goal
setting theory in more detail to understand that question better.49 First, the assignment of a spe-
cific and difficult goal shapes people’s own self-set goals—the internalized goals that people use
to monitor their own task progress.50 In the absence of an assigned goal, employees may not even
consider what their own goals are, or they may self-set relatively easy goals that they’re certain to
meet. As a self-set goal becomes more difficult, the intensity of effort increases, and the persis-
tence of effort gets extended. However, goals have another effect; they trigger the creation of task
strategies, defined as learning plans and problem-solving approaches used to achieve successful
performance.51 In the absence of a goal, it’s easy to rely on trial and error to figure out how best
to do a task. Under the pressure of a measuring stick, however, it becomes more effective to plan
out the next move. Put differently, goals can motivate employees to work both harder and smarter.
6.3
What two qualities make
goals strong predictors of
task performance, accord-
ing to goal setting theory?
Final PDF to printer
171C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 171 10/11/17 08:43 AM
Source: Adapted from E.A. Locke and G.P. Latham, A Theory of Goal Setting and Task Performance (Englewood Cliffs,
NJ: Prentice Hall, 1990).
FIGURE 6-4 Goal Difficulty and Task Performance
Goal Di�culty
T
a
sk
P
e
rf
o
rm
a
n
ce
Easy Moderate Di�cult Impossible
Intensity and
Persistence
Maximized
TABLE 6-3 Settings and Tasks Used in Goal Setting Research
SETTINGS AND TASKS
Air traffic control Management training
Archery Marine recruit performance
Arithmetic Maze learning
Beverage consumption Mining
Chess Proofreading
Computer games Production and manufacturing
Course work Puzzles
Energy conservation Safety behaviors
Exercise Sales
Faculty research Scientific and R&D work
Juggling Sit-ups
LEGO construction Studying
Logging Weight lifting
Managing and supervision Weight loss
Source: Adapted from E.A. Locke and G.P. Latham, A Theory of Goal Setting and Task Performance (Englewood Cliffs,
NJ: Prentice Hall, 1990).
Final PDF to printer
172 C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 172 10/11/17 08:43 AM
Figure 6-5 also includes three variables that specify when assigned goals will have stronger or
weaker effects on task performance. In the jargon of theory diagrams, these variables are called
“moderators.” Rather than directly affecting other variables in the diagram, moderators affect
the strength of the relationships between variables. One moderator is feedback, which consists
of updates on employee progress toward goal attainment.52 Imagine being challenged to beat a
friend’s score on a video game but having your own score hidden as you played. How would you
know how hard to try? Another moderator is task complexity, which reflects how complicated
the information and actions involved in a task are, as well as how much the task changes.53 In
general, the effects of specific and difficult goals are almost twice as strong on simple tasks as on
complex tasks, though the effects of goals remain beneficial even in complex cases.54 Goal setting
at Wyeth, the Madison, New Jersey–based pharmaceuticals company, illustrates the value of goals
for complex tasks (after all, what’s more complicated than chemistry?).55 When Robert Ruffolo
was appointed the new chief of R&D several
years ago, he was concerned about the low
number of new drug compounds being gener-
ated by Wyeth’s labs. His solution? He gave
scientists a goal of discovering 12 new drug
compounds every year, up from the 4 com-
pounds they were previously averaging, with
bonuses contingent on reaching the goals.
Wyeth’s scientists have reached the goal every
year since, and the goal was eventually upped
to 15 compounds per year.
The final moderator shown in Figure 6-5
is goal commitment, defined as the degree
to which a person accepts a goal and is
determined to try to reach it.56 When goal
FIGURE 6-5 Goal Setting Theory
Sources: Adapted from E.A. Locke and G.P. Latham, A Theory of Goal Setting and Task Performance (Englewood Cliffs,
NJ: Prentice Hall, 1990); E.A. Locke and G.P. Latham, “Building a Practically Useful Theory of Goal Setting and Task
Motivation: A 35-Year Odyssey,” American Psychologist 57 (2002), pp. 705–17; and G.P. Latham, “Motivate Employee Per-
formance through Goal-Setting,” in Blackwell Handbook of Principles of Organizational Behavior, ed. E.A. Locke (Malden,
MA: Blackwell, 2000), pp. 107–19.
Specific
and Di�cult
Assigned
Goal
Task
Performance
Self-Set
Goal
Goal
Commitment
Task
Complexity
Feedback
Intensity
of E�ort
Persistence
of E�ort
Task
Strategies
As the chief of research
and development at Wyeth,
Inc., a pharmaceutical
company, Robert Ruffolo
offered company scientists
a bonus for discovering
12 new drug compounds
every year. They’ve done
it every year and are now
reaching for a new goal
of 15.
©Kimimasa Mayama/Bloomberg via Getty Images
Final PDF to printer
173C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 173 10/11/17 08:43 AM
commitment is high, assigning specific and difficult goals will have significant benefits for task
performance. However, when goal commitment is low, those effects become much weaker.57 The
importance of goal commitment raises the question of how best to foster commitment when assign-
ing goals to employees. Table 6-4 summarizes some of the most powerful strategies for fostering
goal commitment, which range from rewards to supervisory support to employee participation.58
Microsoft recently revised its use of goal setting principles in an effort to boost goal commit-
ment and task performance.59 The company had become concerned that employees viewed their
goals as objectives they hoped to meet rather than objectives they were committed to meeting. More-
over, approximately 25–40 percent of employees were working under goals that were either not
specific enough or not measurable enough to offer feedback. To combat these trends, managers
are now trained to identify five to seven S.M.A.R.T. goals for each employee and to link rewards
directly to goal achievement. The S.M.A.R.T. acronym summarizes many beneficial goal character-
istics, standing for Specific, Measurable, Achievable, Results-Based, and Time-Sensitive. (Although
that acronym is a useful reminder, note that it omits the all-important “Difficult” characteristic.)
Managers and employees at Microsoft participate jointly in the goal setting process, and managers
offer support by suggesting task strategies that employees can use to achieve the goals. In this way,
managers and employees come to understand the “how” of achievement, not just the “what.”60 For
insights into how goal setting operates across cultures, see our OB Internationally feature.
E Q U I T Y T H E O RY
Returning to our running example in Figure 6-1, imagine that at this point, you’ve decided to work
on the assignment your boss gave you, and you’ve been told that it’s due by Tuesday at 10:30 a.m.
and can’t have more than two mistakes in it. That’s a specific and difficult goal, so your browser
hasn’t been launched in a while, and you haven’t even thought about checking Facebook. In short,
you’ve been working very hard for a few hours, until the guy from across the hall pops his head in.
You tell him what you’re working on, and he nods sympathetically, saying, “Yeah, the boss gave
me a similar assignment that sounds just as tough. I think she realized how tough it was though,
because she said I could use the company’s playoff tickets if I finish it on time.” Playoff tickets?
Playoff tickets?? Looks like it’s time to check Facebook after all. . . .
TABLE 6-4 Strategies for Fostering Goal Commitment
STRATEGY DESCRIPTION
Rewards Tie goal achievement to the receipt of monetary or nonmonetary
rewards.
Publicity Publicize the goal to significant others and coworkers to create some
social pressure to attain it.
Support Provide supportive supervision to aid employees if they struggle to attain
the goal.
Participation Collaborate on setting the specific proficiency level and due date for a
goal so that the employee feels a sense of ownership over the goal.
Resources Provide the resources needed to attain the goal and remove any con-
straints that could hold back task efforts.
Sources: Adapted from J.R. Hollenbeck and H.J. Klein, “Goal Commitment and the Goal-Setting Process: Problems, Pros-
pects, and Proposals for Future Research,” Journal of Applied Psychology 72 (1987), pp. 212–20; H.J. Klein, M.J. Wesson,
J.R. Hollenbeck, and B.J. Alge, “Goal Commitment and the Goal-Setting Process: Conceptual Clarification and Empirical
Synthesis,” Journal of Applied Psychology 84 (1999), pp. 885–96; E.A. Locke, G.P. Latham, and M. Erez, “The Determi-
nants of Goal Commitment,” Academy of Management Review 13 (1988), pp. 23–29; and G.P. Latham, “The Motivational
Benefits of Goal-Setting,” Academy of Management Executive 18 (2004), pp. 126–29.
Final PDF to printer
174 C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 174 10/11/17 08:43 AM
Research in cross-cultural OB suggests that there are some “universals” when it comes to motiva-
tion. For example, interesting work, pay, achievement, and growth are billed as motivating forces
whose importance does not vary across cultures. Of course, some motivation principles do vary in
their effectiveness across cultures, including some of the strategies for fostering goal commitment.
• Types of goals. Should goals be given on an individual or a groupwide basis? Employees in the
United States usually prefer to be given individual goals. In contrast, employees in other coun-
tries, including China and Japan, prefer to receive team goals. This difference likely reflects the
stronger emphasis on collective responsibility and cooperation in those cultures.
• Rewards. Rewards tend to increase goal commitment across cultures, but cultures vary in the
types of rewards that they value. Employees in the United States prefer to have rewards allocated
according to merit. In contrast, employees in other countries—including China, Japan, and
Sweden—prefer that rewards be allocated equally across members of the work unit. Employees
in India prefer a third allocation strategy—doling out rewards according to need. These cultural
differences show that nations differ in how they prioritize individual achievement, collective
solidarity, and the welfare of others.
• Participation. National culture also affects the importance of participation in setting goals.
Research suggests that employees in the United States are likely to accept assigned goals
because the culture emphasizes hierarchical authority. In contrast, employees in Israel, which
lacks a cultural emphasis on hierarchy, do not respond as well to assigned goals. Instead,
employees in Israel place a premium on participation in goal setting.
• Feedback. Culture also influences how individuals respond when they receive feedback regard-
ing goal progress. As with participation, research suggests that employees in the United States
are more likely to accept feedback because they are comfortable with hierarchical authority
relationships and have a strong desire to reduce uncertainty. Other cultures, like England,
place less value on reducing uncertainty, making feedback less critical to them.
OB INTERNATIONALLY
Sources: H. Aguinis and C.A. Henle, “The Search for Universals in Cross-Cultural Organizational Behavior,” in Organizational
Behavior: The State of the Science, ed. J. Greenberg (Mahwah, NJ: Erlbaum, 2003), pp. 373–411; P.C. Earley and C.B Gibson,
“Taking Stock in Our Progress on Individualism–Collectivism: 100 Years of Solidarity and Community,” Journal of Manage-
ment 24 (1998), pp. 265–304; M. Erez, “A Culture-Based Model of Work Motivation,” in New Perspectives on International Indus-
trial/Organizational Psychology, ed. P.C. Earley and M. Erez (San Francisco: New Lexington Press, 1997), pp. 193–242; M. Erez
and P.C. Earley, “Comparative Analysis of Goal-Setting Strategies Across Cultures,” Journal of Applied Psychology 72 (1987),
pp. 658–65; and P.G. Audia and S. Tams, “Goal Setting, Performance Appraisal, and Feedback across Cultures,” in Blackwell
Handbook of Cross-Cultural Management, ed. M.J. Gannon and K.L. Newman (Malden, MA: Blackwell, 2002), pp. 142–54.
Unlike the first two theories, equity theory acknowledges that motivation doesn’t just depend
on your own beliefs and circumstances but also on what happens to other people.61 More specifi-
cally, equity theory suggests that employees create a “mental ledger” of the outcomes (or rewards)
they get from their job duties.62 What outcomes might be part of your mental ledger? That’s
completely up to you and depends on what you find valuable, though Table 6-5 provides a listing
of some commonly considered outcomes. Equity theory further suggests that employees create
a mental ledger of the inputs (or contributions and investments) they put into their job duties.63
Again, the composition of your mental ledger is completely specific to you, but Table 6-5 provides
a listing of some inputs that seem to matter to most employees.
So what exactly do you do with these mental tallies of outcomes and inputs? Equity theory
argues that you compare your ratio of outcomes and inputs to the ratio of some comparison
other—some person who seems to provide an intuitive frame of reference for judging equity.64
There are three general possibilities that can result from this “cognitive calculus,” as shown in
6.4
What does it mean to be
equitably treated according
to equity theory, and how
do employees respond to
inequity?
Final PDF to printer
175C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 175 10/11/17 08:43 AM
Figure 6-6. The first possibility is that the ratio of outcomes to inputs is balanced between you
and your comparison other. In this case, you feel a sense of equity, and you’re likely to maintain
the intensity and persistence of your effort. This situation would have occurred if you had been
offered playoff tickets, just like your colleague.
The second possibility is that your ratio of outcomes to inputs is less than your comparison
other’s ratio. According to equity theory, any imbalance in ratios triggers equity distress—an inter-
nal tension that can only be alleviated by restoring balance to the ratios.65 In an underreward case,
the equity distress likely takes the form of negative emotions such as anger or envy. One way to
stop feeling those emotions is to try to restore the balance in some way, and Figure 6-6 reveals
two methods for doing so. You could be constructive and proactive by talking to your boss and
explaining why you deserve better outcomes. Such actions would result in the growth of your out-
comes, restoring balance to the ratio. Of course, anger often results in actions that are destructive
rather than constructive, and research shows that feelings of underreward inequity are among the
strongest predictors of counterproductive behaviors, such as employee theft (see Chapter 7 on
trust, justice, and ethics for more on such issues).66 More relevant to this chapter, another means
of restoring balance is to shrink your inputs by lowering the intensity and persistence of effort.
Remember, it’s not the total outcomes or inputs that matter in equity theory—it’s only the ratio.
The third possibility is that your ratio of outcomes to inputs is greater than your comparison
other’s ratio. Equity distress again gets experienced, and the tension likely creates negative emotions
such as guilt or anxiety. Balance could be restored by shrinking your outcomes (taking less money,
giving something back to the comparison other), but the theory acknowledges that such actions are
unlikely in most cases.67 Instead, the more likely solution is to increase your inputs in some way. You
could increase the intensity and persistence of your task effort or decide to engage in more “extra
mile” citizenship behaviors. At some point though, there may not be enough hours in the day to
increase your inputs any further. An alternative (and less labor-intensive) means of increasing your
inputs is to simply rethink them—to reexamine your mental ledger to see if you may have “undersold”
your true contributions. On second thought, maybe your education or seniority is more critical than
you realized, or maybe your skills and abilities are more vital to the organization. This cognitive
distortion allows you to restore balance mentally, without altering your behavior in any way.
There is one other way of restoring balance, regardless of underreward or overreward circum-
stances, that’s not depicted in Figure 6-6: Change your comparison other. After all, we compare
our “lots in life” to a variety of other individuals. Table 6-6 summarizes the different kinds of com-
parison others that can be used.68 Some of those comparisons are internal comparisons, meaning
that they refer to someone in the same company.69 Others are external comparisons, meaning that
they refer to someone in a different company. If a given comparison results in high levels of anger
TABLE 6-5 Some Outcomes and Inputs Considered by Equity Theory
OUTCOMES INPUTS
Pay Effort
Seniority benefits Performance
Fringe benefits Skills and abilities
Status symbols Education
Satisfying supervision Experience
Workplace perks Training
Intrinsic rewards Seniority
Source: Adapted from J.S. Adams, “Inequity in Social Exchange,” in Advances in Experimental Social Psychology, Vol. 2, ed.
L. Berkowitz (New York: Academic Press, 1965), pp. 267–99.
Final PDF to printer
176 C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 176 10/11/17 08:43 AM
Source: Adapted from J.S. Adams, “Inequity in Social Exchange,” in Advances in Experimental Social Psychology, Vol. 2, ed.
L. Berkowitz (New York: Academic Press, 1965), pp. 267–99
FIGURE 6-6 Three Possible Outcomes of Equity Theory Comparisons
COMPARISON RESULT WAYS TO RESTORE BALANCE
Shrink your inputs by lowering the
intensity or persistence of e�ort.
Grow your outcomes by talking to your
boss or by stealing from the company.
Grow your inputs through more high
quality work or through some “cognitive
distortion.”
Shrink your outcomes (yeah, right! . . .
let ’s see what we can do about those
inputs . . .).
No actions needed.
Equity
=
Underreward Inequity
<
Overreward Inequity
>
Other’s
Outcomes
Other’s
Inputs
Your
Outcomes
Your
Inputs
Other’s
Outcomes
Other’s
Inputs
Your
Outcomes
Your
Inputs
Other’s
Outcomes
Other’s
Inputs
Your
Outcomes
Your
Inputs
and envy or high levels of guilt and anxiety, the frame of reference may be shifted. In fact, research
suggests that employees don’t just compare themselves to one other person; instead, they make
multiple comparisons to a variety of different others.70 Although it may be possible to create a sort
of “overall equity” judgment, research shows that people draw distinctions between the various
equity comparisons shown in the table. For example, one study showed that job equity was the
most powerful driver of citizenship behaviors, whereas occupational equity was the most powerful
driver of employee withdrawal.71
These mechanisms make it clear that judging equity is a very subjective process. Recent data
from a Salary.com report highlight that very subjectivity. A survey of 1,500 employees revealed
that 65 percent of the respondents planned to look for a new job in the next three months,
with 57 percent doing so because they felt underpaid. However, Salary.com estimated that only
19 percent of those workers really were underpaid, taking into account their relevant inputs and
the current market conditions. In fact, it was estimated that 17 percent were actually being over-
paid by their companies! On the one hand, that subjectivity is likely to be frustrating to most man-
agers in charge of compensation. On the other hand, it’s important to realize that the intensity
and persistence of employees’ effort is driven by their own equity perceptions, not anyone else’s.
Perhaps many employees feel they’re underpaid because they compare their earnings with their
CEOs’. In 1980, the median compensation for CEOs was 33 times that of the average worker.
Three decades later, that ratio is more than 100 times the average worker’s compensation (and
1,000 times for the companies mentioned in the prior paragraph). Why do boards of directors
Final PDF to printer
177C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 177 10/11/17 08:43 AM
grant such large compensation packages to CEOs? Although there are many reasons, some have
speculated that the pay packages represent status symbols, with many CEOs viewing themselves
in celebrity terms, along the lines of professional athletes.72 Alternatively, CEO pay packages may
represent rewards for years of climbing the corporate ladder or insurance policies against the low
job security for most CEOs.
Can such high pay totals ever be viewed as equitable in an equity theory sense? Well, CEOs likely
have unusually high levels of many inputs, including effort, skills and abilities, education, experience,
training, and seniority. CEOs may also use other CEOs as their comparison others—as opposed to
rank-and-file employees—making them less likely to feel a sense of overreward inequity. Ultimately,
however, the equity of their pay depends on how the company performs under them. Unfortunately,
one analysis revealed a near-zero correlation between CEO pay and shareholder returns.73
Some organizations grapple with concerns about equity by emphasizing pay secrecy (though that
doesn’t help with CEO comparisons, given that the Securities and Exchange Commission demands
the disclosure of CEO pay for all publicly traded companies). One survey indicated that 36 percent
of companies explicitly discourage employees from discussing pay with their colleagues, and surveys
also indicate that most employees approve of pay secrecy.74 Is pay secrecy a good idea? Although it
has not been the subject of much research, there appear to be pluses and minuses associated with
pay secrecy. On the plus side, such policies may reduce conflict between employees while appealing
to concerns about personal privacy. On the minus side, employees may respond to a lack of accurate
information by guessing at equity levels, possibly perceiving more underpayment inequity than truly
exists. In addition, the insistence on secrecy might cause employees to view the company with a
sense of distrust (see Chapter 7 on trust, justice, and ethics for more on this issue).75
P SYC H O LO G I CA L E M P OW E R M E N T
Now we return, for one last time, to our running example in Figure 6-1. When last we checked in,
your motivation levels had suffered because you learned your coworker was offered the company’s
playoff tickets for successfully completing a similar assignment. As you browse the web in total
“time-wasting mode,” you begin thinking about all the reasons you hate working on this assignment.
Even aside from the issue of goals and rewards, you keep coming back to this issue: You would
never have taken on this project by choice. More specifically, the project itself doesn’t seem very
meaningful, and you doubt that it will have any real impact on the functioning of the organization.
Those sentiments signal a low level of psychological empowerment, which reflects an energy
rooted in the belief that work tasks contribute to some larger purpose.76 Psychological empower-
ment represents a form of intrinsic motivation, in that merely performing the work tasks serves as
TABLE 6-6 Judging Equity with Different Comparison Others
COMPARISON TYPE DESCRIPTION
Job Equity Compare yourself to others doing the same job in the same com-
pany, with similar levels of education, seniority, and performance.
Company Equity Compare yourself to others in the same company but in different
jobs, with similar levels of responsibility and working conditions.
Occupational Equity Compare yourself to others doing the same job in other compa-
nies, with similar levels of education, seniority, and performance.
Educational Equity Compare yourself to others who have attained the same educa-
tion level.
Age Equity Compare yourself to others of the same age.
Source: Adapted from R.W. Scholl, E.A. Cooper, and J.F. McKenna, “Referent Selection in Determining Equity Percep-
tions: Differential Effects on Behavioral and Attitudinal Outcomes,” Personnel Psychology 40 (1987), pp. 113–24.
Final PDF to printer
178 C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 178 10/11/17 08:43 AM
OB ON SCREEN
STAR TREK BEYOND
The farther out we go, the more I find myself wondering what it is we’re trying to accomplish. If
the universe is truly endless, then are we not striving for something forever out of reach?
With those words, Captain James T. Kirk (Chris Pine) expresses the crux of his problem in
Star Trek Beyond (Dir. Justin Lin, Paramount Pictures, 2016). His ship, the U.S.S. Enterprise, is
three years into a five-year mission in deep space. The mission hasn’t had a lot of glamour lately,
between mapping solar systems and brokering peace treaties between alien civilizations. When
one of those brokerings goes awry, Kirk has to utter his classic line, “Scotty, get me out of here!”
He was talking about a planet, but could’ve also been talking about his job.
In a psychological empowerment sense, Kirk sees little purpose in his work. After all, what
value is there in mapping out something that’s infinite? Moreover, in space on a starship, each day
literally looks and feels exactly the same. Even when that peace treaty goes anything but peace-
fully, all Kirk can say is “I ripped my shirt again.” When Dr. McCoy (Karl Urban) asks if Kirk is
OK, the Captain responds, “Never better. Just another day in the fleet.”
To make matters worse, the monotony has begun to make Kirk doubt the meaningfulness and
impact of what he’s doing. “As for me,” he notes in his log, “things have started to feel a little . . .
episodic.” When the Enterprise docks for shore leave at Starbase Yorktown, Kirk is hopeful that it
will lift the crew’s morale noting, “Perhaps a break from routine will offer up some respite from the
mysteries of the unknown.” For his part, Kirk is about to explore a new job opportunity—leaving his
post to become a vice admiral at the Yorktown. Perhaps that post is something more of his choosing,
and more in line with what he’s good at. Will he really leave the Enterprise? In a “be careful what you
wish for” twist, that answer depends on whether Kirk survives the challenge right around the corner.
©Entertainment Pictures/Alamy
its own reward and supplies many of the intrinsic outcomes shown in Table 6-2. The concept of
psychological empowerment has much in common with our discussion of “satisfaction with the
work itself” in Chapter 4 on job satisfaction. That discussion illustrated that jobs with high levels
of variety, significance, and autonomy can be intrinsically satisfying.77 Models of psychological
empowerment argue that a similar set of concepts can make work tasks intrinsically motivating.
Four concepts are particularly important: meaningfulness, self-determination, competence, and
impact. To see these concepts at play in deep space, see our OB on Screen feature.
Final PDF to printer
179C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 179 10/11/17 08:43 AM
Meaningfulness captures the value of a work goal or purpose, relative to a person’s own ide-
als and passions.78 When a task is relevant to a meaningful purpose, it becomes easier to con-
centrate on the task and get excited about it. You might even find yourself cutting other tasks
short so you can devote more time to the meaningful one or thinking about the task outside
of work hours.79 In contrast, working on tasks that are not meaningful brings a sense of empti-
ness and detachment. As a result, you might need to mentally force yourself to keep working
on the task. Managers can instill a sense of meaningfulness by articulating an exciting vision or
purpose and fostering a noncynical climate in which employees are free to express idealism and
passion without criticism.80 For their part, employees can build their own sense of meaningful-
ness by identifying and clarifying their own passions. Employees who are fortunate enough to
be extremely passionate about their work sometimes describe it as “a calling”—something they
were born to do.81
Self-determination reflects a sense of choice in the initiation and continuation of work tasks.
Employees with high levels of self-determination can choose what tasks to work on, how to struc-
ture those tasks, and how long to pursue those tasks. That sense of self-determination is a strong
driver of intrinsic motivation, because it allows employees to pursue activities that they them-
selves find meaningful and interesting.82 Managers can instill a sense of self-determination in their
employees by delegating work tasks, rather than micromanaging them, and by trusting employees
to come up with their own approach to certain tasks.83 For their part, employees can gain more
self-determination by earning the trust of their bosses and negotiating for the latitude that comes
with that increased trust.
Competence captures a person’s belief in his or her capability to perform work tasks success-
fully.84 Competence is identical to the self-efficacy concept reviewed previously in this chapter;
employees with a strong sense of competence (or self-efficacy) believe they can execute the par-
ticular behaviors needed to achieve success at work. Competence brings with it a sense of pride
and mastery that is itself intrinsically motivating. Managers can instill a sense of competence in
their employees by providing opportunities for training and knowledge gain, expressing positive
feedback, and providing challenges that are an appropriate match for employees’ skill levels.85
Employees can build their own competence by engaging in self-directed learning, seeking out feed-
back from their managers, and managing their own workloads.
Impact reflects the sense that a person’s actions “make a difference”—that progress is being
made toward fulfilling some important purpose.86 Phrases such as “moving forward,” “being on
track,” and “getting there” convey a sense of impact.87 The polar opposite of impact is “learned
helplessness”—the sense that it doesn’t matter what a person does, nothing will make a differ-
ence. Here, phrases such as “stuck in a rut,” “at a standstill,” or “going nowhere” become more
relevant. Managers can instill a sense of impact by celebrating milestones along the journey to
task accomplishment, particularly for tasks that span a long time frame.88 Employees can attain a
deeper sense of impact by building the collaborative relationships needed to speed task progress
and initiating their own celebrations of “small wins” along the way.
Studies of generational
trends point to the increas-
ing interest of psychological
empowerment as a motivating
force. For example, one sur-
vey of 3,332 teens worldwide
revealed that 78 percent viewed
personal fulfillment as a key
motivator.89 There is also a
sense that younger employees
enter the workplace with higher
expectations for the impor-
tance of their roles, the auton-
omy they’ll be given, and the
progress they’ll make in their
organizational careers. That
trend is especially apparent in
6.5
What is psychological
empowerment, and what
four beliefs determine
empowerment levels?
Young employees at
MindTree, an information
technology consulting firm,
are given mentoring and
personal attention to build
a sense of empowerment.
©Namas Bhojani/AP Images
Final PDF to printer
180 C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 180 10/11/17 08:43 AM
India, where the younger generation is coming of age in a time of unprecedented job opportunities
due to the tech-services boom. MindTree, an IT consulting firm headquartered in New Jersey and
Bangalore, India, takes steps to prevent young employees from feeling “lost in a sea of people.”90
The company places new hires into “houses” with their own assembly space and work areas, provid-
ing opportunities for more personal attention and mentoring. Infosys, another IT consulting firm
based in Bangalore, established a “Voice of Youth Council” that places a dozen under-30 employ-
ees on its executive management committee. The committee gives younger employees the chance
to impact the company’s operations. Bela Gupta, the council’s youngest member at 24 years of age,
describes the experience as “very empowering.”
S U M M A RY: W H Y A R E S O M E E M P LOY E E S M O R E M OT I VAT E D
T H A N OT H E R S ?
So what explains why some employees are more motivated than others? As shown in Figure 6-7,
answering that question requires considering all the energetic forces that initiate work-related
effort, including expectancy theory concepts (expectancy, instrumentality, valence), the existence
(or absence) of specific and difficult goals, perceptions of equity, and feelings of psychological
empowerment. Unmotivated employees may simply lack confidence due to a lack of expectancy
or competence or the assignment of an unachievable goal. Alternatively, such employees may feel
their performance is not properly rewarded due to a lack of instrumentality, a lack of valence,
or feelings of inequity. Finally, it may be that their work simply isn’t challenging or intrinsically
rewarding due to the assignment of easy or abstract goals or the absence of meaningfulness, self-
determination, and impact.
H O W I M P O R TA N T I S M OT I VAT I O N ?
Does motivation have a significant impact on the two primary outcomes in our integrative model
of OB—does it correlate with job performance and organizational commitment? Answering that
question is somewhat complicated, because motivation is not just one thing but rather a set of
energetic forces. Figure 6-8 summarizes the research evidence linking motivation to job perfor-
mance and organizational commitment. The figure expresses the likely combined impact of those
energetic forces on the two outcomes in our OB model.
Turning first to job performance, literally thousands of studies support the relationships
between the various motivating forces and task performance. The motivating force with the stron-
gest performance effect is self-efficacy/competence, because people who feel a sense of internal
self-confidence tend to outperform those who doubt their capabilities.91 Difficult goals are the sec-
ond most powerful motivating force; people who receive such goals outperform the recipients of
easy goals.92 The motivational force created by high levels of valence, instrumentality, and expec-
tancy is the next most powerful motivational variable for task performance.93 Finally, perceptions
of equity have a somewhat weaker effect on task performance.94
Less attention has been devoted to the linkages between motivation variables and citizenship
and counterproductive behavior. With respect to the former, employees who engage in more
work-related effort would seem more likely to perform “extra mile” sorts of actions because those
actions themselves require extra effort. The best evidence in support of that claim comes from
research on equity. Specifically, employees who feel a sense of equity on the job are more likely
to engage in citizenship behaviors, particularly when those behaviors aid the organization.95 The
same employees are less likely to engage in counterproductive behaviors because such behaviors
often serve as a retaliation against perceived inequities.96
As with citizenship behaviors, the relationship between motivation and organizational com-
mitment seems straightforward. After all, the psychological and physical forms of withdrawal
that characterize less committed employees are themselves evidence of low levels of motivation.
6.6
How does motivation affect
job performance and orga-
nizational commitment?
Final PDF to printer
181C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 181 10/11/17 08:43 AM
FIGURE 6-7 Why Are Some Employees More Motivated Than Others?
MOTIVATING FORCES
Expectancy Instrumentality
Valence
Other’s
Inputs
Your
Inputs
EFFORT
=
Meaningfulness
Self-
Determination
Competence
Impact
Specific
and Di�cult
Assigned
Goal
Direction
of E�ort
Intensity
of E�ort
Persistence
of E�ort
Self-Set
Goal
PE O
Psychological
Empowerment
Other’s
Outcomes
Your
Outcomes
Clearly employees who are daydreaming, coming in late, and taking longer breaks are struggling
to put forth consistently high levels of work effort. Research on equity and organizational com-
mitment offers the clearest insights into the motivation–commitment relationship. Specifically,
employees who feel a sense of equity are more emotionally attached to their firms and feel a stron-
ger sense of obligation to remain.97
Final PDF to printer
182 C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 182 10/11/17 08:43 AM
FIGURE 6-8 Effects of Motivation on Performance and Commitment
Sources: Y. Cohen-Charash and P.E. Spector, “The Role of Justice in Organizations: A Meta-Analysis,” Organizational
Behavior and Human Decision Processes 86 (2001), pp. 287–321; J.A. Colquitt, D.E. Conlon, M.J. Wesson, C.O.L.H.
Porter, and K.Y. Ng, “Justice at the Millennium: A Meta-Analytic Review of 25 Years of Organizational Justice Research,”
Journal of Applied Psychology 86 (2001), pp. 425–45; J.P. Meyer, D.J. Stanley, L. Herscovitch, and L. Topolnytsky, “Affec-
tive, Continuance, and Normative Commitment to the Organization: A Meta-Analysis of Antecedents, Correlates, and
Consequences,” Journal of Vocational Behavior 61 (2002), pp. 20–52; A.D. Stajkovic and F. Luthans, “Self-Efficacy
and Work-Related Performance: A Meta-Analysis,” Psychological Bulletin 124 (1998), pp. 240–61; W. Van Eerde and
H. Thierry, “Vroom’s Expectancy Models and Work-Related Criteria: A Meta-Analysis,” Journal of Applied Psychology
81 (1996), pp. 575–86; and R.E. Wood, A.J. Mento, and E.A. Locke, “Task Complexity as a Moderator of Goal Effects:
A Meta-Analysis,” Journal of Applied Psychology 72 (1987), pp. 416–25.
Motivation has a strong positive e�ect on Job Performance. People who experience higher
levels of motivation tend to have higher levels of Task Performance. Those e�ects are strongest
for self-e�cacy/competence, followed by goal di�culty, the valence-instrumentality-expectancy
combination, and equity. Less is known about the e�ects of motivation on Citizenship and
Counterproductive Behavior, though equity has a moderate positive e�ect on the former and a
moderate negative e�ect on the latter.
Less is known about the e�ects of Motivation on Organizational Commitment. However, equity
has a moderate positive e�ect. People who experience higher levels of equity tend to feel higher
levels of A�ective Commitment and higher levels of Normative Commitment. E�ects on
Continuance Commitment are weaker.
Motivation
Job
Performance
Motivation
Organizational
Commitment
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
A P P L I C AT I O N : C O M P E N S AT I O N S Y S T E M S
The most important area in which motivation concepts are applied in organizations is in the
design of compensation systems. Table 6-7 provides an overview of many of the elements used in
typical compensation systems. We use the term “element” in the table to acknowledge that most
organizations use a combination of multiple elements to compensate their employees. Two points
must be noted about Table 6-7. First, the descriptions of the elements are simplistic; the reality
is that each of the elements can be implemented and executed in a variety of ways.98 Second, the
elements are designed to do more than just motivate. For example, plans that put pay “at risk”
rather than creating increases in base salary are geared toward control of labor costs. As another
Final PDF to printer
183C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 183 10/11/17 08:43 AM
example, elements that stress individual achievement are believed to alter the composition of a
workforce over time, with high achievers drawn to the organization while less motivated employ-
ees are selected out. Finally, plans that reward unit or organizational performance are designed
to reinforce collaboration, information sharing, and monitoring among employees, regardless of
their impact on motivation levels.
One way of judging the motivational impact of compensation plan elements is to consider
whether the elements provide difficult and specific goals for channeling work effort. Merit pay
and profit sharing offer little in the way of difficult and specific goals because both essentially
challenge employees to make next year as good (or better) than this year. In contrast, lump-sum
bonuses and gain sharing provide a forum for assigning difficult and specific goals; the former
does so at the individual level and the latter at the unit level. Partly for this reason, both types of
plans have been credited with improvements in employee productivity.99
Another way of judging the motivational impact of the compensation plan elements is to con-
sider the correspondence between individual performance levels and individual monetary out-
comes. After all, that correspondence influences perceptions of both instrumentality and equity.
6.7
What steps can organiza-
tions take to increase
employee motivation?
TABLE 6-7 Compensation Plan Elements
ELEMENT DESCRIPTION
Individual-Focused
Piece-rate A specified rate is paid for each unit produced, each unit sold, or
each service provided.
Merit pay An increase to base salary is made in accordance with perfor-
mance evaluation ratings.
Lump-sum bonuses A bonus is received for meeting individual goals but no change
is made to base salary. The potential bonus represents “at risk”
pay that must be re-earned each year. Base salary may be lower
in cases in which potential bonuses may be large.
Recognition awards Tangible awards (gift cards, merchandise, trips, special events,
time off, plaques) or intangible awards (praise) are given on an
impromptu basis to recognize achievement.
Unit-Focused
Gainsharing A bonus is received for meeting unit goals (department goals,
plant goals, business unit goals) for criteria controllable by
employees (labor costs, use of materials, quality). No change is
made to base salary. The potential bonus represents “at risk”
pay that must be re-earned each year. Base salary may be lower
in cases in which potential bonuses may be large.
Organization-Focused
Profit sharing A bonus is received when the publicly reported earnings
of a company exceed some minimum level, with the magnitude
of the bonus contingent on the magnitude of the profits. No
change is made to base salary. The potential bonus represents
“at risk” pay that must be re-earned each year. Base salary may
be lower in cases in which potential bonuses may be large.
Final PDF to printer
184 C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 184 10/11/17 08:43 AM
Profit sharing, for example, is unlikely to have strong motivational consequences because an indi-
vidual employee can do little to improve the profitability of the company, regardless of his or her
job performance.100 Instrumentality and equity are more achievable with gain sharing because the
relevant unit is smaller and the relevant outcomes are more controllable. Still, the highest instru-
mentality and equity levels will typically be achieved through individual-focused compensation
elements, such as piece-rate plans or merit pay plans.
Of the two individual-focused elements, merit pay is by far the more common, given that
it is difficult to apply piece-rate plans outside of manufacturing, sales, and service contexts.
Indeed, one review estimated that merit pay is used by around 90 percent of U.S. organiza-
tions.101 Criticisms of merit pay typically focus on a smaller than expected differentiation in pay
across employees. One survey reported that pay increases for top performers (5.6 percent on
average) are only modestly greater than the pay increases for average performers (3.3 percent
on average).102 Such differences seem incapable of creating a perceived linkage between perfor-
mance and outcomes (though merit reviews can also have indirect effects on pay by triggering
promotions).103
A number of factors constrain instrumentality and equity in most applications of merit pay.
As noted earlier, one such factor is budgetary constraints because many organizations freeze or
limit pay increases during an economic downturn. Another factor is the accuracy of the actual
performance evaluation. Think of all the times you’ve been evaluated by someone else, whether
in school or in the workplace. How many times have you reacted by thinking, “Where did that
rating come from?” or “I think I’m being evaluated on the wrong things!” Performance evalua-
tion experts suggest that employees should be evaluated on behaviors that are controllable by the
employees (see Chapter 2 on job performance for more discussion of such issues), observable by
managers, and critical to the implementation of the firm’s strategy.104 The managers who conduct
evaluations also need to be trained in how to conduct them, which typically involves gaining
knowledge of the relevant behaviors ahead of time and being taught to keep records of employee
behavior between evaluation sessions.105
Even if employees are evaluated on the right things by a boss who has a good handle on their
performance, other factors can still undermine accuracy. Some managers might knowingly give
inaccurate evaluations due to workplace politics or a desire to not “make waves.” One survey
showed that 70 percent of managers have trouble giving poor ratings to underachieving employ-
ees.106 Unfortunately, such practices only serve to damage instrumentality and equity because they
fail to separate star employees from struggling employees. To ensure that such separation occurs,
Yahoo! instituted a “stacked ranking” system to determine compensation, in which managers rank
all the employees within their unit from top to bottom.107 Employees at the top end of those rank-
ings then receive higher bonuses than employees at the bottom end. Although such practices
raise concerns about employee morale and excessive competitiveness, research suggests that such
forced distribution systems can boost the performance of a company’s workforce, especially for
the first few years after their implementation.108
Finally, another factor that can hinder the effectiveness of merit pay is its typical once-a-
year schedule. How long a shelf life can the motivational benefits of a salary increase really
have? One month? Two months? Six? Such concerns have led a number of organizations to
supplement other compensation elements with more widespread use of recognition awards.
For example, Symantec, the Mountain View, California–based software firm, uses something
called an Applause Program.109 It honors employees in real time with a combination of gift cards
(worth up to $1,000) and electronic thank-you cards. Estimates suggest that around 65 percent
of employees have been recognized with some form of “applause” since the program launched.
The Everett Clinic, based in Everett, Washington, uses a number of different recognition awards,
colorfully named HeroGrams, Caught in the Act cards, and Pat on the Back cards.110 Explains
Daniel Debow, the founder of Rypple, a performance management system that resembles Face-
book in its look and feel, “We live in a real-time world . . . so it’s crazy to think people wouldn’t
want real-time feedback.”111
Final PDF to printer
185C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 185 10/11/17 08:43 AM
6.1 Motivation is defined as a set of energetic forces that originates both within and outside
an employee, initiates work-related effort, and determines its direction, intensity, and
persistence.
6.2 According to expectancy theory, effort is directed toward behaviors when effort is believed
to result in performance (expectancy), performance is believed to result in outcomes (instru-
mentality), and those outcomes are anticipated to be valuable (valence).
6.3 According to goal setting theory, goals become strong drivers of motivation and perfor-
mance when they are difficult and specific. Specific and difficult goals affect performance
by increasing self-set goals and task strategies. Those effects occur more frequently when
employees are given feedback, tasks are not too complex, and goal commitment is high.
6.4 According to equity theory, rewards are equitable when a person’s ratio of outcomes to
inputs matches those of some relevant comparison other. A sense of inequity triggers equity
distress. Underreward inequity typically results in lower levels of motivation or higher levels
of counterproductive behavior. Overreward inequity typically results in cognitive distortion,
in which inputs are reevaluated in a more positive light.
6.5 Psychological empowerment reflects an energy rooted in the belief that tasks are contribut-
ing to some larger purpose. Psychological empowerment is fostered when work goals appeal
to employees’ passions (meaningfulness), employees have a sense of choice regarding work
tasks (self-determination), employees feel capable of performing successfully (competence),
and employees feel they are making progress toward fulfilling their purpose (impact).
6.6 Motivation has a strong positive relationship with job performance and a moderate positive
relationship with organizational commitment. Of all the energetic forces subsumed by moti-
vation, self-efficacy/competence has the strongest relationship with performance.
6.7 Organizations use compensation practices to increase motivation. Those practices may include
individual-focused elements (piece-rate, merit pay, lump-sum bonuses, recognition awards),
unit-focused elements (gain sharing), or organization-focused elements (profit sharing).
TA K E AWAY S
K E Y T E R M S
• Motivation p. 162
• Engagement p. 163
• Expectancy theory p. 164
• Expectancy p. 164
• Self-efficacy p. 165
• Past accomplishments p. 165
• Vicarious experiences p. 165
• Verbal persuasion p. 165
• Emotional cues p. 165
• Instrumentality p. 166
• Valence p. 166
• Needs p. 166
• Extrinsic motivation p. 167
• Intrinsic motivation p. 167
• Meaning of money p. 168
• Goal setting theory p. 170
• Specific and difficult goals p. 170
• Self-set goals p. 170
• Task strategies p. 170
• Feedback p. 172
• Task complexity p. 172
• Goal commitment p. 172
• S.M.A.R.T. goals p. 173
• Equity theory p. 174
• Comparison other p. 174
• Equity distress p. 175
• Cognitive distortion p. 175
• Internal comparisons p. 175
• External comparisons p. 175
• Psychological empowerment p. 177
• Meaningfulness p. 179
• Self-determination p. 179
• Competence p. 179
• Impact p. 179
Final PDF to printer
186 C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 186 10/11/17 08:43 AM
6.1 Which of the outcomes in Table 6-2 are most appealing to you? Are you more attracted to
extrinsic outcomes or intrinsic outcomes? Do you think that your preferences will change as
you get older?
6.2 Assume that you were working on a group project and that one of your teammates was
nervous about speaking in front of the class during the presentation. Drawing on Figure 6-3,
what exactly could you do to make your classmate feel more confident?
6.3 Consider the five strategies for fostering goal commitment (rewards, publicity, support,
participation, and resources). Which of those strategies do you think is most effective? Can
you picture any of them having potential drawbacks?
6.4 How do you tend to respond when you experience overreward and underreward inequity?
Why do you respond that way rather than with some other combination in Figure 6-6?
6.5 Think about a job that you’ve held in which you felt very low levels of psychological empow-
erment. What could the organization have done to increase empowerment levels?
D I S C U S S I O N Q U E S T I O N S
One motivational issue that Google pays particular attention to concerns its star performers.
Most organizations treat performance evaluation ratings—and accompanying compensation
differences—much like grades in a college course. Just as a distribution of grades might have a
few A’s, more A–’s, B+’s, B’s, and B–’s, and a few C’s, so too do performance evaluations wind
up with a few 5’s, more 4’s, 3’s, and 2’s, and a few 1’s. Thus, scores and rewards have a “bell
curve” distribution, with fewer people in the tails and more in the middle. Moreover, just as an
A is only a bit more rewarding than an A–, so too does a 5 get just a bit more than a 4.
Although there’s a logic to that view of evaluation and compensation, it misses an important
insight from scientific work on performance. That work suggests that the top 1 percent of
performers contribute 10 percent of the firm’s productivity all by themselves. Similarly, the top 5
percent of performers contribute 25 percent of the productivity all by themselves. Put differently,
stars aren’t just a little bit better than typical employees—they’re worlds better. This is especially
true in white collar jobs where there are no equipment or process constraints on what employees
can do. As Bill Gates once argued, “A great lathe operator commands several times the wage
of an average lathe operator, but a great writer of software code is worth 10,000 times the
price of an average software writer.”
Laszlo Bock, the former head of Google’s People Operations group, followed such
advice when rewarding star performers. He argues, “Internal pay systems don’t move quickly
enough or offer enough pay flexibility to pay the best people what they are actually worth.
The rational thing for you to do, as an exceptional performer, is to quit.” Thus, Google prac-
tices what he calls “paying unfairly”—where “unfairly” means a rejection of the notion that
5’s should only get a little more than 4’s or 3’s. “If the best performer is generating ten
times as much impact as an average performer, they shouldn’t necessarily get ten times the
reward,” Bock notes, “but I’d wager they should get at least five times the reward.” He
continues, “The only way to stay within budget is to give smaller rewards to the poorer
performers, or even the average ones. That won’t feel good initially, but take comfort in know-
ing that you’ve now given your best people a reason to stay with you, and everyone else a
reason to aim higher.”
C A S E : G O O G L E
Final PDF to printer
187C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 187 10/11/17 08:43 AM
6.1 Do you agree with Bock that star performers should get a lot more—not just a little more—
than average performers? If someone earning a 3 on Google’s evaluation system gets a
2 percent raise, what should employees earning 4’s and 5’s get?
6.2 Given the budget issues created by giving star performers more, should someone earning a
3 get a 2 percent raise—or should they get less? What are the arguments for and against
a 2 percent raise level for average performers?
6.3 Consider all the things Google’s People Operations group does to motivate its employees.
Which motivation theories do they seem to be leveraging, and how?
Sources: L. Bock, Work Rules! Insights from Inside Google that Will Transform How You Live and Lead. New York: Twelve,
2015; E. O’Boyle Jr. and H. Aguinis, “The Best and the Rest: Revisiting the Norm of Normality of Individual Perfor-
mance.” Personnel Psychology, 65, 79–119.
EXERCISE: EXPLAINING PAY DIFFERENCES
The purpose of this exercise is to demonstrate how compensation can be used to influence moti-
vation. This exercise uses groups, so your instructor will either assign you to a group or ask you
to create your own group. The exercise has the following steps:
6.1 Read the following scenario: Chris Clements and Pat Palmer are both computer program-
mers working for the same Fortune 500 company. One day they found out that Chris earns
$60,820 per year, while Pat earns $72,890. Chris was surprised and said, “I can’t think of
any reason why we should be paid so differently.” “I can think of at least 10 reasons,” Pat
responded. Can you, like Pat, think of at least 10 reasons that could cause this difference in
salary between two people? These reasons can be legal or illegal, wise or unwise.
6.2 Going around the group from member to member, generate a list of 10 conceivable reasons
why Pat may be earning more than Chris. Remember, the reasons can be legal or illegal, wise
or unwise.
6.3 Consider whether the theories discussed in the chapter—expectancy theory, goal setting the-
ory, equity theory, and psychological empowerment—are relevant to the list of reasons you’ve
generated. Maybe one of the theories supports the wisdom of a given reason. For example,
maybe Pat’s job is more difficult than Chris’s job. Equity theory would support the wisdom
of that reason because job difficulty is a relevant input. Maybe one of the theories questions
the wisdom of a given reason. For example, maybe Chris’s boss believes that salary increases
are a poor use of limited financial resources. Expectancy theory would question the wisdom
of that reason because that philosophy harms instrumentality.
6.4 Elect a group member to write the group’s 10 reasons on the board. Then indicate which
theories are relevant to the various reasons by writing one or more of the following abbrevia-
tions next to a given reason: EX for expectancy theory, GS for goal setting theory, EQ for
equity theory, and PE for psychological empowerment.
6.5 Class discussion (whether in groups or as a class) should center on which theories seem
most relevant to the potential reasons for the pay differences between Chris and Pat. Are
there some potential reasons that don’t seem relevant to any of the four theories? Do those
reasons tend to be legal or illegal, wise or unwise?
Source: Adapted from Renard, M.K. “It’s All about the Money: Chris and Pat Compare Salaries.” Journal of Management
Education 32 (2008), pp. 248–61.
Final PDF to printer
188 C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 188 10/11/17 08:43 AM
6.1 Steers, R.M.; R.T.
Mowday; and D.
Shapiro. “The Future
of Work Motivation.”
Academy of Manage-
ment Review 29 (2004),
pp. 379–87; and
Latham, G.P. Work
Motivation: History,
Theory, Research, and
Practice. Thousand
Oaks, CA: Sage, 2006.
6.2 Latham, G.P., and
C.C. Pinder. “Work
Motivation Theory
and Research at the
Dawn of the Twenty-
First Century.” Annual
Review of Psychology 56
(2005), pp. 485–516.
6.3 Maier, N.R.F. Psychol-
ogy in Industry, 2nd
ed. Boston: Houghton
Mifflin, 1955.
6.4 Kahn, W.A. “Psycho-
logical Conditions of
Personal Engagement
and Disengagement
at Work.” Academy of
Management Journal 33
(1990), pp. 692–724.
6.5 Rich, B.L.; J.A. LePine;
and E.R. Crawford.
“Job Engagement:
Antecedents and
Effects on Job Perfor-
mance.” Academy of
Management Journal
52 (2009), pp. 617–35;
Schaufeli, W.B.; M.
Salanova; V. Gonzalez-
Roma; and A.B.
Bakker. “The Measure-
ment of Engagement
and Burnout: A Two
Sample Confirma-
tory Factor Analytic
Approach.” Journal
of Happiness Studies
3 (2002), pp. 71–92;
and Macy, W.H., and
B. Schneider. “The
Meaning of Employee
Engagement.” Industrial
and Organizational
Psychology 1 (2008),
pp. 3–30.
6.6 Ibid.; and Rothbard,
N.P. “Enriching or
Depleting? The
Dynamics of Engage-
ment in Work and
Family Roles.”
Administrative Science
Quarterly 46 (2001),
pp. 655–84.
6.7 Harter, J.K.; F.L.
Schmidt; and T.H.
Hayes. “Business-Unit-
Level Relationship
between Employee
Satisfaction, Employee
Engagement, and
Business Outcomes: A
Meta-Analysis.” Journal
of Applied Psychology 87
(2002), pp. 268–79.
6.8 O’Boyle, E., and J.
Harter. “State of the
American Workplace.”
Gallup, June 29, 2013,
http://www
.gallup.com/strategic
consulting/163007/
state-american-
workplace.aspx.
6.9 Woolley, S. “New Pri-
orities for Employers.”
Bloomberg Business-
week, September 13–19,
2010, p. 54.
6.10 Bakker, A.B., and D.
Xanthopoulou. “The
Crossover of Daily
Work Engagement: Test
of an Actor-Partner
Interdependence
Model.” Journal of
Applied Psychology 94
(2009), pp. 1562–71.
6.11 Vroom, V.H. Work and
Motivation. New York:
Wiley, 1964.
6.12 Ibid.; see also Thorn-
dike, E.L. “The Law
of Effect.” American
Journal of Psychology
39 (1964), pp. 212–22;
Hull, C.L. Essentials of
Behavior. New Haven:
Yale University Press,
1951; and Postman, L.
“The History and Pres-
ent Status of the Law
of Effect.” Psychological
Bulletin 44 (1947),
pp. 489–563.
6.13 Bandura, A. “Self-
Efficacy: Toward a
Unifying Theory of
Behavioral Change.”
Psychological Review 84
(1977), pp. 191–215.
6.14 Brockner, J. Self-Esteem
at Work. Lexington,
MA: Lexington Books,
1988.
6.15 Bandura,
“Self-Efficacy.”
6.16 Ibid.
6.17 Ibid.
6.18 Gist, M.E., and T.R.
Mitchell. “Self-Efficacy:
A Theoretical Analysis
of Its Determinants and
Malleability.” Academy
of Management Review
17 (1992), pp. 183–211.
6.19 Vroom, Work and
Motivation.
E N D N OT E S
Final PDF to printer
189C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 189 10/11/17 08:43 AM
6.20 Pinder, C.C. Work Moti-
vation. Glenview, IL:
Scott, Foresman, 1984.
6.21 Stillings, J., and L.
Snyder. “Up Front: The
Stat.” BusinessWeek,
July 4, 2005, p. 12.
6.22 Henneman, T. “Cracks
in the Ice.” Workforce
Management, November
2010, pp. 30–36.
6.23 Source: Henneman,
T. “Cracks in the Ice.”
Workforce Manage-
ment, November 2010,
pp. 30–36.
6.24 Vroom, Work and
Motivation.
6.25 Pinder, Work Motivation.
6.26 Landy, F.J., and W.S.
Becker. “Motivation
Theory Reconsidered.”
In Research in Organiza-
tional Behavior, Vol. 9,
ed. B.M. Staw and L.L.
Cummings. Greenwich,
CT: JAI Press, 1987, pp.
1–38; and Naylor, J.C.;
D.R. Pritchard; and
D.R. Ilgen. A Theory
of Behavior in Orga-
nizations. New York:
Academic Press, 1980.
6.27 Maslow, A.H. “A
Theory of Human Moti-
vation.” Psychological
Review 50 (1943), pp.
370–96; and Alderfer,
C.P. “An Empirical Test
of a New Theory of
Human Needs.” Orga-
nizational Behavior and
Human Performance 4
(1969), pp. 142–75.
6.28 Ibid.; see also Deci,
E.L., and R.M. Ryan.
“The ‘What’ and ‘Why’
of Goal Pursuits:
Human Needs and the
Self-Determination of
Behavior.” Psychological
Inquiry 11 (2000),
pp. 227–68; Cropan-
zano, R.; Z.S. Byrne;
D.R. Bobocel; and D.R.
Rupp. “Moral Virtues,
Fairness Heuristics,
Social Entities, and
Other Denizens of
Organizational Justice.”
Journal of Vocational
Behavior 58 (2001),
pp. 164–209; Williams,
K.D. “Social Ostra-
cism.” In Aversive Inter-
personal Behaviors, ed.
R.M. Kowalski. New
York: Plenum Press,
1997, pp. 133–70;
and Thomas, K.W.,
and B.A. Velthouse.
“Cognitive Elements
of Empowerment: An
‘Interpretive’ Model of
Intrinsic Task Motiva-
tion.” Academy of
Management Review 15
(1990), pp. 666–81.
6.29 Deci and Ryan, “The
‘What’ and ‘Why’”;
and Naylor et al., A
Theory of Behavior in
Organizations.
6.30 Ibid.
6.31 Source: Huff, C.
“Motivating Workers
Worldwide.” Workforce
Management, Septem-
ber 24, 2007, pp. 25–31.
6.32 Speizer, I. “Incentives
Catch on Overseas, but
Value of Awards Can
Too Easily Get Lost in
Translation.” Workforce,
November 21, 2005,
pp. 46–49.
6.33 Huff, “Motivating the
World”; and Speizer,
“Incentives Catch on
Overseas.”
6.34 Rynes, S.L.; B. Gerhart;
and K.A. Minette. “The
Importance of Pay in
Employee Motivation:
Discrepancies between
What People Say and
What They Do.” Human
Resource Management
43 (2004), pp. 381–94;
and Rynes, S.L.; K.G.
Brown; and A.E. Col-
bert. “Seven Common
Misconceptions about
Human Resource Prac-
tices: Research Findings
versus Practitioner
Beliefs.” Academy of
Management Executive
16 (2002), pp. 92–102.
6.35 Rynes et al., “The
Importance of Pay.”
6.36 Ibid.
6.37 Mitchell, T.R., and
A.E. Mickel. “The
Meaning of Money: An
Individual Differences
Perspective.” Academy
of Management Review
24 (1999), pp. 568–78.
6.38 Tang, T.L. “The
Meaning of Money
Revisited.” Journal of
Organizational Behavior
13 (1992), pp. 197–202;
and Mickel, A.E., and
L.A. Barron. “Getting
‘More Bang for the
Buck.’” Journal of
Management Inquiry 17
(2008), pp. 329–38.
6.39 Tang, T.L. “The
Development of a
Short Money Ethic
Scale: Attitudes toward
Money and Pay Satis-
faction Revisited.”
Personality and Indi-
vidual Differences 19
(1995), pp. 809–16.
6.40 Tang, “The Meaning of
Money Revisited.”
Final PDF to printer
190 C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 190 10/11/17 08:43 AM
6.41 Ibid.; and Tang, “The
Development of a
Short Money Ethic
Scale.”
6.42 Tang, “The Develop-
ment of a Short Money
Ethic Scale.”
6.43 Vroom, Work and Moti-
vation; and Lawler III,
E.E., and J.L. Suttle.
“Expectancy Theory
and Job Behavior.”
Organizational Behavior
and Human Perfor-
mance 9 (1973), pp.
482–503.
6.44 Locke, E.A. “Toward
a Theory of Task
Motivation and Incen-
tives.” Organizational
Behavior and Human
Performance 3 (1968),
pp. 157–89.
6.45 Locke, E.A.; K.N.
Shaw; L.M. Saari; and
G.P. Latham. “Goal
Setting and Task Per-
formance: 1969–1980.”
Psychological Bulletin
90 (1981), pp. 125–52.
6.46 Locke, E.A., and G.P.
Latham. A Theory
of Goal Setting and
Task Performance.
Englewood Cliffs, NJ:
Prentice Hall, 1990.
6.47 Ibid.
6.48 Ibid.
6.49 Ibid.; see also Locke,
E.A., and G.P. Latham.
“Building a Practically
Useful Theory of
Goal Setting and Task
Motivation: A 35-Year
Odyssey.” American
Psychologist 57 (2002),
pp. 705–17; and
Latham, G.P. “Motivate
Employee Performance
through Goal-Setting.”
In Blackwell Handbook
of Principles of Organi-
zational Behavior, ed.
E.A. Locke. Malden,
MA: Blackwell, 2000,
pp. 107–19.
6.50 Locke and Latham, A
Theory of Goal Setting.
6.51 Locke et al., “Goal
Setting and Task
Performance.”
6.52 Ibid.; Locke and
Latham, A Theory of
Goal Setting; and Locke
and Latham, “Building
a Practically Useful
Theory.”
6.53 Wood, R.E.; A.J.
Mento; and E.A.
Locke. “Task Complex-
ity as a Moderator of
Goal Effects: A Meta-
Analysis.” Journal of
Applied Psychology 72
(1987), pp. 416–25.
6.54 Ibid.
6.55 Barrett, A. “Cracking
the Whip at Wyeth.”
BusinessWeek, February
6, 2006, pp. 70–71.
6.56 Hollenbeck, J.R., and
H.J. Klein. “Goal
Commitment and the
Goal-Setting Process:
Problems, Prospects,
and Proposal for Future
Research.” Journal of
Applied Psychology 72
(1987), pp. 212–20;
see also Locke et al.,
“Goal Setting and Task
Performance.”
6.57 Klein, H.J.; M.J. Wesson;
J.R. Hollenbeck;
and B.J. Alge. “Goal
Commitment and the
Goal-Setting Process:
Conceptual Clarifica-
tion and Empirical
Synthesis.” Journal of
Applied Psychology 84
(1999), pp. 885–96;
and Donovan, J.J., and
D.J. Radosevich. “The
Moderating Role of
Goal Commitment on
the Goal Difficulty–
Performance Relation-
ship: A Meta-Analytic
Review and Critical
Reanalysis.” Journal of
Applied Psychology 83
(1998), pp. 308–15.
6.58 Hollenbeck and Klein,
“Goal Commitment
and the Goal-Setting
Process”; Klein et al.,
“Goal Commitment”;
Locke, E.A.; G.P
Latham; and M. Erez.
“The Determinants of
Goal Commitment.”
Academy of Manage-
ment Review 13 (1988),
pp. 23–29; and Latham,
G.P. “The Motivational
Benefits of Goal-
Setting.” Academy
of Management Execu-
tive 18 (2004),
pp. 126–29.
6.59 Shaw, K.N. “Chang-
ing the Goal Setting
Process at Microsoft.”
Academy of Manage-
ment Executive 18
(2004), pp. 139–42.
6.60 Ibid.
6.61 Adams, J.S., and
W.B. Rosenbaum.
“The Relationship of
Worker Productivity to
Cognitive Dissonance
about Wage Inequities.”
Journal of Applied
Psychology 46 (1962),
pp. 161–64.
Final PDF to printer
191C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 191 10/11/17 08:43 AM
6.62 Adams, J.S. “Inequity
in Social Exchange.” In
Advances in Experimen-
tal Social Psychology,
Vol. 2, ed. L. Berkowitz.
New York: Academic
Press, 1965, pp.
267–99; and Homans,
G.C. Social Behaviour:
Its Elementary Forms.
London: Routledge &
Kegan Paul, 1961.
6.63 Ibid.
6.64 Adams, “Inequality in
Social Exchange.”
6.65 Ibid.
6.66 Greenberg, J.
“Employee Theft as a
Reaction to Underpay-
ment Inequity: The
Hidden Cost of Payc-
uts.” Journal of Applied
Psychology 75 (1990),
pp. 561–68; and
Greenberg, J. “Stealing
in the Name of Justice:
Informational and
Interpersonal Modera-
tors of Theft Reactions
to Underpayment Ineq-
uity.” Organizational
Behavior and Human
Decision Processes 54
(1993), pp. 81–103.
6.67 Adams, “Inequality in
Social Exchange.”
6.68 Scholl, R.W.; E.A. Coo-
per; and J.F. McKenna.
“Referent Selection in
Determining Equity
Perceptions: Differen-
tial Effects on Behav-
ioral and Attitudinal
Outcomes.” Personnel
Psychology 40 (1987),
pp. 113–24.
6.69 Ibid.
6.70 Ibid.; see also Finn,
R.H., and S.M. Lee.
“Salary Equity: Its
Determination, Analy-
sis, and Correlates.”
Journal of Applied
Psychology 56 (1972),
pp. 283–92.
6.71 Scholl et al., “Referent
Selection.”
6.72 Sulkowicz, K. “CEO
Pay: The Prestige, the
Peril.” BusinessWeek,
November 20, 2006, p.
18.
6.73 Silver-Greenberg,
J., and A. Leondis.
“How Much Is a CEO
Worth?” Bloomberg
Businessweek, May
10–16, 2010, pp. 70–71.
6.74 Colella, A.; R.L. Paet-
zold; A. Zardkoohi; and
M. Wesson. “Exposing
Pay Secrecy.” Academy
of Management Review
32 (2007), pp. 55–71.
6.75 Ibid.
6.76 Thomas, K.W., and
B.A. Velthouse.
“Cognitive Elements
of Empowerment: An
‘Interpretive’ Model of
Intrinsic Task Motiva-
tion.” Academy of
Management Review 15
(1990), pp. 666–81.
6.77 Hackman, J.R., and
G.R. Oldham. Work
Redesign. Reading, MA:
Addison-Wesley, 1980.
6.78 Thomas and Velthouse,
“Cognitive Elements of
Empowerment”; Spre-
itzer, G.M. “Psychologi-
cal Empowerment in
the Workplace: Dimen-
sions, Measurement,
and Validation.” Acad-
emy of Management
Journal 38 (1995),
pp. 1442–65; Deci,
E.L., and R.M. Ryan.
Intrinsic Motivation and
Self-Determination in
Human Behavior. New
York: Plenum, 1985;
and Hackman and Old-
ham, Work Redesign.
6.79 Thomas, K.W. Intrinsic
Motivation at Work:
Building Energy and
Commitment. San Fran-
cisco: Berrett-Koehler,
2000.
6.80 Ibid.
6.81 Bunderson, J.S., and
J.A. Thompson. “The
Call of the Wild:
Zookeepers, Callings,
and the Double-Edged
Sword of Deeply Mean-
ingful Work.” Adminis-
trative Science Quarterly
54 (2009), pp. 32–57;
Duffy, R.D., and W.E.
Sedlacek. “The Pres-
ence of and Search for
a Calling: Connections
to Career Develop-
ment.” Journal of
Vocational Behavior 70
(2007), pp. 590–601;
and Hagmaier, T., and
A.E. Abele. “The Multi-
dimensionality of Call-
ing: Conceptualization,
Measurement and a
Bicultural Perspective.”
Journal of Vocational
Behavior 81 (2012).
pp. 39–51.
6.82 Thomas and Velthouse,
“Cognitive Elements of
Empowerment”; and
Spreitzer, “Psychologi-
cal Empowerment.”
6.83 Thomas, Intrinsic Moti-
vation at Work.
6.84 Thomas and Velthouse,
“Cognitive Elements of
Final PDF to printer
192 C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 192 10/11/17 08:43 AM
Empowerment”; and
Spreitzer, “Psychologi-
cal Empowerment.”
6.85 Thomas, Intrinsic Moti-
vation at Work.
6.86 Thomas and Velthouse,
“Cognitive Elements of
Empowerment.”
6.87 Thomas, Intrinsic Moti-
vation at Work.
6.88 Thomas, Intrinsic Moti-
vation at Work.
6.89 Gerdes, L. “Get Ready
for a Pickier Work-
force.” BusinessWeek,
September 18, 2006, p.
82.
6.90 Hamm, S. “Young and
Impatient in India.”
BusinessWeek, January
28, 2008, pp. 45–48.
6.91 Stajkovic, A.D., and F.
Luthans. “Self-Efficacy
and Work-Related
Performance: A Meta-
Analysis.” Psychological
Bulletin 124 (1998), pp.
240–61.
6.92 Wood et al., “Task
Complexity as a
Moderator.”
6.93 Van Eerde, W., and
H. Thierry. “Vroom’s
Expectancy Models
and Work-Related Cri-
teria: A Meta-Analysis.”
Journal of Applied
Psychology 81 (1996),
pp. 575–86.
6.94 Cohen-Charash, Y.,
and P.E. Spector.
“The Role of Justice
in Organizations:
A Meta-Analysis.”
Organizational Behavior
and Human Decision
Processes 86 (2001), pp.
287–321; and Colquitt,
J.A.; D.E. Conlon;
M.J. Wesson; C.O.L.H.
Porter; and K.Y. Ng.
“Justice at the Millen-
nium: A Meta-Analytic
Review of 25 Years of
Organizational Justice
Research.” Journal of
Applied Psychology 86
(2001), pp. 425–45.
6.95 Ibid.
6.96 Ibid.
6.97 Ibid.
6.98 Lawler III, E.E.
Rewarding Excellence:
Pay Strategies for the
New Economy. San
Francisco: Jossey-Bass,
2000; and Gerhart,
B.; S.L. Rynes; and
I.S. Fulmer. “Pay and
Performance: Indi-
viduals, Groups, and
Executives.” Academy of
Management Annals, 3
(2009), pp. 251–315.
6.99 Ibid.; see also Durham,
C.C., and K.M. Bartol.
“Pay for Performance.”
In Handbook of Prin-
ciples of Organizational
Behavior, ed. E.A.
Locke. Malden, MA:
Blackwell, 2000, pp.
150–65; and Gerhart,
B.; H.B. Minkoff; and
R.N. Olsen. “Employee
Compensation: Theory,
Practice, and Evi-
dence.” In Handbook
of Human Resource
Management, ed. G.R.
Ferris, S.D. Rosen, and
D.T. Barnum. Malden,
MA: Blackwell, 1995,
pp. 528–47.
6.100 Ibid.
6.101 Gerhart et al., “Pay
and Performance”;
and Cohen, K. “The
Pulse of the Profes-
sion: 2006–2007
Budget Survey.” Work-
span, September 2006,
pp. 23–26.
6.102 Hansen, F. “Merit-Pay
Payoff?” Workforce
Management, Novem-
ber 3, 2008, pp.
33–39.
6.103 Ibid.
6.104 Latham, G., and S.
Latham. “Overlook-
ing Theory and
Research in Perfor-
mance Appraisal at
One’s Peril: Much
Done, More to
Do.” In Industrial
and Organizational
Psychology: Linking
Theory with Practice,
ed. C.L. Cooper
and E.A. Locke.
Oxford, UK:
Blackwell, 2000,
pp. 199–215.
6.105 Ibid.
6.106 Sulkowicz, K.
“Straight Talk at
Review Time.”
BusinessWeek,
September 10, 2007,
p. 16.
6.107 McGregor, J.
“The Struggle to
Measure Perfor-
mance.” Business-
Week, January 9,
2006, pp. 26–28.
Final PDF to printer
193C H A P T E R 6 Motivation
coL27660_ch06_160-193.indd 193 10/11/17 08:43 AM
Psychology 58 (2005),
pp. 1–32.
6.109 Shepherd, L.
“Getting Personal.”
Workforce Manage-
ment, September 2010,
pp. 24–29.
6.108 Scullen, S.E.; P.K.
Bergey; and L. Aiman-
Smith. “Forced Distri-
bution Rating Systems
and the Improve-
ment of Workforce
Potential: A Baseline
Simulation.” Personnel
6.110 Ibid.
6.111 Pyrillis, R. “The
Reviews Are In.”
Workforce Manage-
ment, May 2011,
pp. 20–25.
Final PDF to printer
coL27660_ch07_194-231.indd 194 10/20/17 02:24 PM
7
LEARNING GOALS
7.1 What is trust, and how does it relate to justice and ethics?
7.2 In what three sources can trust be rooted?
7.3 What dimensions can be used to describe the trustworthiness of an authority?
7.4 What dimensions can be used to describe the fairness of an authority’s decision making?
7.5 What is the four-component model of ethical decision making?
7.6 How does trust affect job performance and organizational commitment?
7.7 What steps can organizations take to become more trustworthy?
After reading this chapter, you should be able to answer the following questions:
Trust, Justice, and Ethics
INDIVIDUAL
OUTCOMES
INDIVIDUAL
MECHANISMS
INDIVIDUAL
CHARACTERISTICS
ORGANIZATIONAL
MECHANISMS
Organizational
Culture
Organizational
Structure
Teams:
Processes &
Communication
Motivation
Trust, Justice,
& Ethics
Teams:
Characteristics &
Diversity
Learning &
Decision Making
Ability
Personality &
Cultural Values
Stress
Leadership:
Power &
Negotiation
Job
Satisfaction
Leadership:
Styles &
Behaviors
Organizational
Commitment
Job
Performance
GROUP
MECHANISMS
Final PDF to printer
coL27660_ch07_194-231.indd 195 10/20/17 02:24 PM
W
hat image comes to mind when you picture Sea-
World? Dolphins? Penguins? Chances are it’s a
powerful majestic killer whale—or orca—jumping
out of the water or splashing the audience with its tail. The
company owns 89,000 animals in total, but it’s the 29 orcas
that have always gotten the lion’s share of attention. After
years of controversy, however, theatrical orca shows are
being phased out at SeaWorld’s parks.
The controversy over SeaWorld’s orcas began in 2010
when a whale named Tilly killed a trainer. That incident led
to an investigation by the Occupational Safety and Health
Administration and—more famously—a scathing documen-
tary called Blackfish. That film debuted at the Sundance
film festival in 2013 and tied Tilly to two additional deaths,
making the case that the whale became violent due to cap-
tivity. As Blackfish played widely on CNN and Netflix, more
and more people expressed criticism of SeaWorld on social
media. People for the Ethical Treatment of Animals (PETA)
staged protests of SeaWorld, both at its parks and at the
homes of its executives. The criticisms triggered by Black-
fish cut to the core of SeaWorld as a company. Its mission
was to care for and train animals in captivity, with the film
making the case that captivity itself was unethical. Initially,
the company responded in ways that only exacerbated the
ethical issue. Aside from launching a combative public rela-
tions campaign, it also sent staff members “undercover” as
animal rights activists to spy on PETA.
Joel Manby—SeaWorld’s new CEO—has helped to steady
the ship. It was Manby who made the decision to phase out
the theatrical orca shows. He commissioned a nine-month
study that showed a majority of Americans thought that
keeping large creatures in small spaces was unethical. It
was also Manby who devoted SeaWorld to a more educa-
tion- and conservation-focused mission. Such activities
have always been in SeaWorld’s DNA, as when it helped
rescue hundreds of animals stranded on the California
Coast in 2015. “I really felt the company was getting a bad
rap,” notes Manby. “I wanted to help them get through this.”
Manby’s new vision for the park is “experiences that matter.”
Visitors will increasingly be taken “behind the scenes” to
see all the things that SeaWorld does to care for the planet
and its creatures.
SEAWORLD
©Asif Islam/Shutterstock
Final PDF to printer
196 C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 196 10/20/17 02:24 PM
T R U S T, J U S T I C E , A N D E T H I C S
One reason companies care about ethical issues is that a firm’s reputation is one of its most prized
possessions. An organization’s reputation reflects the prominence of its brand in the minds of
the public and the perceived quality of its goods and services.1 Reputation is an intangible asset
that can take a long time to build but, as Ben Franklin once noted, can be cracked as easily as
glass or china.2 That’s especially the case today, when one bad experience with any company
can be tweeted, shared on Facebook, posted on a blog, or videotaped and uploaded to YouTube.
Although we typically think about a company’s reputation in reference to potential consumers,
it matters to employees as well. Recruitment experts maintain that top performers want to work
at organizations with clean reputations, in part because they want to protect their own personal
image. Indeed, one survey found that 78 percent of adults would rather work at a company with
an excellent reputation and an average salary than at a company with a high salary and a poor
reputation.3 Who are some companies with excellent reputations? Table 7-1 provides the top 25
from Fortune’s list of “Most Admired Companies.”
Reputations depend on many things, but one of the most important factors is trust. Trust is
defined as the willingness to be vulnerable to a trustee based on positive expectations about the
trustee’s actions and intentions.4 If a customer trusts the quality of a company’s products or ser-
vices, that customer is willing to accept the consequences of paying money to the company. If a
potential recruit trusts the words of a company’s management, that recruit is willing to accept the
consequences of becoming a member of the organization. Both examples illustrate that trusting
reflects a willingness to “put yourself out there,” even though doing so could be met with disap-
pointment. The examples also highlight the difference between “trust” and “risk.” Actually mak-
ing yourself vulnerable—by buying products or accepting a job—constitutes risk. Trust reflects the
willingness to take that risk. Unfortunately, trust in many companies has declined sharply due to
TABLE 7-1 The World’s Most Admired Companies
1. Apple 14. Netflix
2. Amazon 15. Costco
3. Starbucks 16. Coca-Cola
4. Berkshire Hathaway 17. American Express
5. Walt Disney 18. Nordstrom
6. Google 19. Procter & Gamble
7. General Electric 20. Salesforce.com
8. Southwest Airlines 21. BMW
9. Facebook 22. JPMorgan Chase
10. Microsoft 23. 3M
11. FedEx 24. IBM
12. Nike 25. USAA
13. Johnson & Johnson 25. Marriott
Source: From C. Tkaczyk, “The World’s Most Admired Companies,” Fortune, March 1, 2015.
Final PDF to printer
197C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 197 10/20/17 02:24 PM
corporate scandals and economic shifts. Indeed, one recent survey revealed that only 44 percent
of Americans say they trust business, down from 58 percent one year earlier.5 “Trust is what drives
profit margin and share price,” notes the CEO of one branding and marketing firm. “It is what
consumers are looking for and what they share with one another.”
This chapter focuses on trust in organizational authorities, a group that could include the
CEO of an organization, its top management team, or supervisors and managers within the firm.
These authorities “put a face on a company,” giving employees and customers a means of judg-
ing a company’s reputation. These authorities are also capable of having a significant influence
on the performance and commitment of employees. As you’ll see in the chapter, trust in these
authorities depends on two related concepts. Justice reflects the perceived fairness of an author-
ity’s decision making.6 When employees perceive high levels of justice, they believe that decision
outcomes are fair and that decision-making processes are designed and implemented in a fair
manner. Justice concepts can be used to explain why employees judge some authorities to be
more trustworthy than others.7 Ethics reflects the degree to which the behaviors of an authority
are in accordance with generally accepted moral norms.8 When employees perceive high levels
of ethics, they believe that things are being done the way they “should be” or “ought to be” done.
Ethics concepts can be used to explain why authorities decide to act in a trustworthy or untrust-
worthy manner.
W H Y A R E S O M E AU T H O R I T I E S M O R E T R U S T E D
T H A N OT H E R S ?
Think about a particular boss or instructor—someone you’ve spent a significant amount of time
around. Do you trust that person? Would you be willing to let that person have significant influ-
ence over your professional or educational future? For example, would you be willing to let that
person serve as a reference for you or write you a letter of recommendation, even though you’d
have no way of monitoring what he or she said about you? When you think about the level of trust
you feel for that particular authority, what exactly makes you feel that way? This question speaks
to the factors that drive trust—the factors that help inspire a willingness to be vulnerable.
T R U ST
As shown in Figure 7-1, trust is rooted in three different kinds of factors. Sometimes trust is
disposition-based, meaning that your personality traits include a general propensity to trust others.
Sometimes trust is cognition-based, meaning that it’s rooted in a rational assessment of the author-
ity’s trustworthiness.9 Sometimes trust is affect-based, meaning that it depends on feelings toward
the authority that go beyond any rational assessment.10 The sections that follow describe each of
these trust forms in more detail.
DISPOSITION-BASED TRUST Disposition-based trust has less to do with a particular authority
and more to do with the trustor. Some trustors are high in trust propensity—a general expectation
that the words, promises, and statements of individuals and groups can be relied upon.11 Some
have argued that trust propensity represents a sort of “faith in human nature,” in that trusting
people view others in more favorable terms than do suspicious people.12 The importance of trust
propensity is most obvious in interactions with strangers, in which any acceptance of vulnerability
would amount to “blind trust.”13 On the one hand, people who are high in trust propensity may
be fooled into trusting others who are not worthy of it.14 On the other hand, those who are low in
trust propensity may be penalized by not trusting someone who is actually deserving of it. Both
situations can be damaging; as one scholar noted, “We are doomed if we trust all and equally
doomed if we trust none.”15 Where do you stack up on trust propensity? See our OB Assessments
feature to find out.
Where does our trust propensity come from? As with all traits, trust propensity is a product
of both nature and nurture (see Chapter 9 on personality and cultural values for more discussion
7.1
What is trust, and how
does it relate to justice and
ethics?
7.2
In what three sources can
trust be rooted?
Final PDF to printer
198 C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 198 10/20/17 02:24 PM
Source: Adapted from R.C. Mayer, J.H. Davis, and F.D. Schoorman, “An Integrative Model of Organizational Trust,”
Academy of Management Review 20 (1995), pp. 709–34; and D.J. McAllister, “Affect- and Cognition-Based Trust as Foun-
dations for Interpersonal Cooperation in Organizations,” Academy of Management Journal 38 (1995), pp. 24–59.
FIGURE 7-1 Factors That Influence Trust Levels
Trust
Ability
Benevolence
Integrity
Trust
Propensity
Feelings toward
Trustee
Disposition-Based Trust
Cognition-Based Trust
A�ect-Based Trust
Trustworthiness
of such issues). If our parents are dispositionally suspicious, we may either inherit that tendency
genetically or model it as we watch them exhibit distrust in their day-to-day lives. Research also
suggests that trust propensity is shaped by early childhood experiences.16 In fact, trust propensity
may be one of the first personality traits to develop because infants must immediately learn to
trust their parents to meet their needs. The more our needs are met as children, the more trusting
we become; the more we are disappointed as children, the less trusting we become. Our propensi-
ties continue to be shaped later in life as we gain experiences with friends, schools, churches, local
government authorities, and other relevant groups.17
The nation in which we live also affects our trust propensity. Research by the World Values
Study Group examines differences between nations on various attitudes and perceptions. The
study group collects interview data from 45 different societies with a total sample size of more
than 90,000 participants. One of the questions asked by the study group measures trust propen-
sity. Specifically, participants are asked, “Generally speaking, would you say that most people can
be trusted or that you can’t be too careful in dealing with people?” Figure 7-2 shows the percent-
age of participants who answered “Most people can be trusted” for this question, as opposed to
“Can’t be too careful,” for several of the nations included in the study. The results reveal that trust
propensity levels are actually relatively high in the United States, especially in relation to countries
in Europe and South America.
Final PDF to printer
199C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 199 10/20/17 02:24 PM
OB ASSESSMENTS
Sources: R.C. Mayer and J.H. Davis, “The Effect of the Performance Appraisal System on Trust for Management: A Field
Quasi-Experiment,” Journal of Applied Psychology 84 (1999), pp. 123–36.
TRUST PROPENSITY
Are you a trusting person or a suspicious person by nature? This assessment is designed to mea-
sure trust propensity—a dispositional willingness to trust other people. Answer each question
using the response scale provided. Then subtract your answers to the boldfaced questions from
6, with the difference being your new answers for those questions. For example, if your original
answer for question 4 was “4,” your new answer is “2” (6 – 4). Then sum up your answers for the
eight questions. (Instructors: Assessments on procedural justice, moral attentiveness, and moral
identity can be found in the PowerPoints in the Connect Library’s Instructor Resources and in the
Connect assignments for this chapter.)
1
STRONGLY
DISAGREE
2
DISAGREE
3
NEUTRAL
4
AGREE
5
STRONGLY
AGREE
1. One should be very cautious with strangers.
2. Most experts tell the truth about the limits of their knowledge.
3. Most people can be counted on to do what they say they will do.
4. These days, you must be alert or someone is likely to take advantage
of you.
5. Most salespeople are honest in describing their products.
6. Most repair people will not overcharge people who are ignorant of their
specialty.
7. Most people answer public opinion polls honestly.
8. Most adults are competent at their jobs.
SCORING AND INTERPRETATION
If your scores sum up to 21 or above, you tend to be trusting of other people, which means you’re
often willing to accept some vulnerability to others under conditions of risk. If your scores sum
up to 20 or below, you tend to be suspicious of other people, which means you’re rarely willing to
accept such vulnerability.
COGNITION-BASED TRUST Disposition-based trust guides us in cases when we don’t yet have
data about a particular authority. However, eventually we gain enough knowledge to gauge the
authority’s trustworthiness, defined as the characteristics or attributes of a trustee that inspire
trust.18 At that point, our trust begins to be based on cognitions we’ve developed about the author-
ity, as opposed to our own personality or disposition. In this way, cognition-based trust is driven
by the authority’s “track record.”19 If that track record has shown the authority to be trustworthy,
7.3
What dimensions can be
used to describe the trust-
worthiness of an authority?
Final PDF to printer
200 C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 200 10/20/17 02:24 PM
then vulnerability to the authority can be accepted. If that track record is spotty however, then
trust may not be warranted. Research suggests that we gauge the track record of an authority
along three dimensions: ability, benevolence, and integrity.20
The first dimension of trustworthiness is ability, defined
as the skills, competencies, and areas of expertise that
enable an authority to be successful in some specific area
(see Chapter 10 on ability for more discussion of such
issues).21 Think about the decision-making process that you
go through when choosing a doctor, lawyer, or mechanic.
Clearly one of the first things you consider is ability because
you’re not going to trust them if they don’t know a scalpel
from a retractor, a tort from a writ, or a camshaft from a
crankshaft. Of course, listing a specific area is a key compo-
nent of the ability definition; you wouldn’t trust a mechanic
to perform surgery, nor would you trust a doctor to fix your
car! The ability of business authorities may be considered on
a number of levels. For example, managers may be judged
according to their functional expertise in a particular voca-
tion but also according to their leadership skills and their
general business sense.
The second dimension of trustworthiness is benevolence,
defined as the belief that the authority wants to do good
for the trustor, apart from any selfish or profit-centered
Source: Adapted from J.J. Johnson and J.B. Cullen, “Trust in Cross-Cultural Relationships,” in Blackwell Handbook of
Cross-Cultural Management, ed. M.J. Gannon and K.L. Newman (Malden, MA: Blackwell, 2002), pp. 335–60.
FIGURE 7-2 Trust Propensities by Nation
0 10 20 30 40 50 60 70
Sweden
China
Netherlands
Canada
United States
Ireland
Britain
Japan
Russia
Italy
India
Spain
South Korea
Mexico
South Africa
France
Argentina
Chile
Portugal
Romania
Turkey
Brazil
Percentage Agreeing “Most People Can Be Trusted”
Children whose needs are
generally met tend to grow
into trusting adults.
©Brand X Pictures/Getty Images
Final PDF to printer
201C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 201 10/20/17 02:24 PM
motives.22 When authorities are perceived
as benevolent, it means that they care for
employees, are concerned about their well-
being, and feel a sense of loyalty to them.
The mentor–protégé relationship provides
a good example of benevolence at work, in
that the best mentors go out of their way to
be helpful apart from concerns about finan-
cial rewards.23 The management at Meijer, the
Grand Rapids, Michigan–based supermarket
chain, seems to understand the importance of
benevolence.24 Meijer added a five-day course
on “positive organizational scholarship” to
its leadership training program. The training
stresses the importance of positive communication and a culture of kindness in the organization.
The chain, which operates 180 stores with 60,000 employees, is attempting to compete with the
likes of Walmart by maximizing the commitment of its workforce. David Beach, the vice president
of workforce planning and development, noted, “We realized that we need our company to be a
place where people want to work.”25
The third dimension of trustworthiness is integrity, defined as the perception that the author-
ity adheres to a set of values and principles that the trustor finds acceptable.26 When authorities
have integrity, they are of sound character—they have good intentions and strong moral disci-
pline.27 Integrity also conveys an alignment between words and deeds—a sense that authorities
keep their promises, “walk the talk,” and “do what they say they will do.”28 Unfortunately, one
survey indicated that only around 20 percent of American workers view senior managers as acting
in accordance with their words.29 A few years ago Domino’s Pizza showed an unusual amount
of integrity in its advertising and business operations. Despite the fact that its market share was
holding steady, the company admitted that customers didn’t think its pizza was all that great.30
Domino’s president vowed to put 40 percent more herbs in its sauce, use better cheese, and add a
special glaze to its crust. The end result is a better-tasting pizza (in our humble opinion, anyway!),
an increase in sales,31 and the sense that Domino’s management “tells it how it is.”
Questions about integrity extend beyond senior management, however. For example, studies
suggest that rank-and-file employees lie more frequently when communicating by e-mail because
there are no “shifty eyes” or nervous ticks to give them away. Indeed, one study showed that peo-
ple were more likely to lie via e-mail than when writing letters using pen and paper.32 Why would
those contexts differ, when neither is face-to-face? It may be that e-mail feels more fleeting than
paper and that the ability to delete what you write—even if you ultimately don’t—makes you choose
words more casually. Regardless, the lies can begin even before employees are hired, as one survey
of managers by CareerBuilder.com revealed that 49 percent had caught an applicant lying on a
résumé.33 Among the more colorful “exaggerations” were claims of membership in Mensa, listing
a degree from a fictitious university, and pretending to be a Kennedy. For a discussion of integrity
during the delivery of feedback, see our OB at the Bookstore feature.
AFFECT-BASED TRUST Although ability, benevolence, and integrity provide three good rea-
sons to trust an authority, the third form of trust isn’t actually rooted in reason. Affect-based
trust is more emotional than rational. With affect-based trust, we trust because we have feelings
for the person in question; we really like them and have a fondness for them. Those feelings are
what prompt us to accept vulnerability to another person. Put simply, we trust them because we
like them. Some of that trust can even be chemical, as research shows that something as common
as a hug can stimulate a hormone called oxytocin—sometimes called the “cuddle chemical”—that
causes your brain to be more trusting.34
Affect-based trust acts as a supplement to the types of trust discussed previously.35 Figure 7-3
describes how the various forms of trust can build on one another over time. In new relation-
ships, trust depends solely on our own trust propensity. In most relationships, that propensity
eventually gets supplemented by knowledge about ability, benevolence, or integrity, at which point
After admitting that the
company needed to
change its pizza recipe and
ingredients, Domino’s set
out to get people to try the
new and improved version.
©Gareth Fuller/PA Wire URN:9540468/AP Images
Final PDF to printer
202 C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 202 10/20/17 02:24 PM
OB AT THE BOOKSTORE
RADICAL CANDOR
by Kim Scott (New York: St. Martin’s Press, 2017).
Developing trust is not simply a matter of ‘do x, y, and z, and you have a good relationship.’
Like all human bonds, the connections between bosses and the people who report to them are
unpredictable and not subject to absolute rules. But I have identified two dimensions that, when
paired, will help you move in a positive direction.
With those words, Kim Scott describes how to foster trust between
managers and their employees. What are the two dimensions? The
first is called “Care Personally.” It involves viewing employees as
whole human beings—as caring about more than just their skills.
Scott’s description sounds a lot like the benevolence aspect of trust-
worthiness, as it involves a caring that goes beyond profit maximiza-
tion. The second is called “Challenge Directly.” It involves being truly
honest with employees about their performance—when it’s good and
(especially) when it’s bad. Scott argues that this sort of challenging
cuts to the core of what managers are obligated to do. As such, it has
elements of the ability and integrity aspects of trustworthiness.
Where does the book’s title come from? Scott describes Radical
Candor as the combination of high levels of Care Personally and
Challenge Directly. That combination is important. Proving that
they truly care about employees is what gives managers the reserve of
good will during times when challenging is needed. Without that good will, the challenging would
offend rather than redirect.
Of course, Scott doesn’t pretend that Radical Candor is easy. “It’s brutally hard to tell people
when they are screwing up,” she writes. “You don’t want to hurt anyone’s feelings; that’s because
you’re not a sadist. You don’t want that person or the rest of the team to think you’re a jerk.
Plus, you’ve been told since you learned to talk, ‘If you don’t have anything nice to say, don’t say
anything at all.’ Now all of a sudden it’s your job to say it. You’ve got to undo a lifetime of train-
ing. Management is hard.” Fortunately, Scott provides a number of specific tips for meeting that
challenge.
©Roberts Publishing Services
cognition-based trust develops. In a select few of those relationships, an emotional bond develops,
and our feelings for the trustee further increase our willingness to accept vulnerability. These
relationships are characterized by a mutual investment of time and energy, a sense of deep attach-
ment, and the realization that both parties would feel a sense of loss if the relationship were
dissolved.36
SUMMARY Taken together, disposition-based trust, cognition-based trust, and affect-based
trust provide three completely different sources of trust in a particular authority. In the case of
disposition-based trust, our willingness to be vulnerable has little to do with the authority and
more to do with our genes and our early life experiences. In the case of affect-based trust, our
willingness to be vulnerable has little to do with a rational assessment of the authority’s merits
and more to do with our emotional fondness for the authority. Only in the case of cognition-based
trust do we rationally evaluate the pluses and minuses of an authority, in terms of its ability,
Final PDF to printer
203C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 203 10/20/17 02:24 PM
Sources: Adapted from R.J. Lewicki and B.B. Bunker, “Developing and Maintaining Trust in Work Relationships,” in Trust
in Organizations: Frontiers of Theory and Research, ed. R.M. Kramer and T.R. Tyler (Thousand Oaks, CA: Sage, 1996),
pp. 114–39; and R.C. Mayer, J.H. Davis, and F.D. Schoorman, “An Integrative Model of Organizational Trust,” Academy
of Management Review 20 (1995), pp. 709–34.
FIGURE 7-3 Types of Trust Over Time
Time
Disposition-
Based Trust
Cognition-
Based Trust
A�ect-
Based Trust
New
Relationships
Most
Relationships
Few
Relationships
benevolence, and integrity. But how exactly do we gauge those trustworthiness forms? One way is
to consider whether authorities adhere to rules of justice.
J U ST I C E
It’s often difficult to assess the ability, benevolence, and integrity of authorities accurately, par-
ticularly early in a working relationship. What employees need in such circumstances is some sort
of observable behavioral evidence that an authority might be trustworthy. Justice provides that
sort of behavioral evidence because authorities who treat employees more fairly are usually judged
to be more trustworthy.37 As shown in Table 7-2, employees can judge the fairness of an author-
ity’s decision making along four dimensions: distributive justice, procedural justice, interpersonal
justice, and informational justice.
DISTRIBUTIVE JUSTICE Distributive justice reflects the perceived fairness of decision-making
outcomes.38 Employees gauge distributive justice by asking whether decision outcomes—such as
pay, rewards, evaluations, promotions, and work assignments—are allocated using proper norms.
In most business situations, the proper norm is equity, with more outcomes allocated to those
who contribute more inputs (see Chapter 6 on motivation for more discussion of such issues).
The equity norm is typically judged to be the fairest choice in situations in which the goal is to
maximize the productivity of individual employees.39
However, other allocation norms become appropriate in situations in which other goals are
critical. In team-based work, building harmony and solidarity in work groups can become just as
important as individual productivity. In such cases, an equality norm may be judged fairer, such
that all team members receive the same amount of relevant rewards.40 The equality norm is typi-
cally used in student project groups, in which all group members receive exactly the same grade
on a project, regardless of their individual productivity levels. In cases in which the welfare of a
particular employee is the critical concern, a need norm may be judged fairer. For example, some
organizations protect new employees from committee assignments and other extra activities, so
that they can get their careers off to a productive start.
7.4
What dimensions can
be used to describe the
fairness of an authority’s
decision making?
Final PDF to printer
204 C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 204 10/20/17 02:24 PM
PROCEDURAL JUSTICE In addition to judging the fairness of a decision outcome, employees
may consider the process that led to that outcome. Procedural justice reflects the perceived fair-
ness of decision-making processes.41 Procedural justice is fostered when authorities adhere to
rules of fair process. One of those rules is voice, or giving employees a chance to express their
opinions and views during the course of decision making.42 A related rule is correctability, which
provides employees with a chance to request an appeal when a procedure seems to have worked
ineffectively. Research suggests that these rules improve employees’ reactions to decisions,43
largely because they give employees a sense of ownership over the decisions. Employees tend to
value voice and appeals, even when they don’t result in the desired outcome,44 because they like
to be heard. That is, the expression of opinions is a valued end, in and of itself, when employees
believe that their opinions have been truly considered.
Aside from voice and correctability, procedural justice is fostered when authorities adhere to
four rules that serve to create equal employment opportunity.45 The consistency, bias suppression,
representativeness, and accuracy rules help ensure that procedures are neutral and objective, as
opposed to biased and discriminatory. These sorts of procedural rules are relevant in many areas
of working life. As one example, the rules can be used to make hiring practices more fair by ensur-
ing that interview questions are unbiased and asked in the same manner across applications. As
TABLE 7-2 The Four Dimensions of Justice
DISTRIBUTIVE JUSTICE RULES DESCRIPTION
Equity vs. equality vs. need Are rewards allocated according to the proper norm?
PROCEDURAL JUSTICE RULES
Voice Do employees get to provide input into procedures?
Correctability Do procedures build in mechanisms for appeals?
Consistency Are procedures consistent across people and time?
Bias suppression Are procedures neutral and unbiased?
Representativeness Do procedures consider the needs of all groups?
Accuracy Are procedures based on accurate information?
INTERPERSONAL JUSTICE RULES
Respect Do authorities treat employees with sincerity?
Propriety Do authorities refrain from improper remarks?
INFORMATIONAL JUSTICE RULES
Justification Do authorities explain procedures thoroughly?
Truthfulness Are those explanations honest?
Sources: J.S. Adams, “Inequity in Social Exchange,” in Advances in Experimental Social Psychology, Vol. 2, ed. L. Berkowitz
(New York: Academic Press, 1965), pp. 267–99; R.J. Bies and J.F. Moag, “Interactional Justice: Communication Criteria
of Fairness,” in Research on Negotiations in Organizations, Vol. 1, ed. R.J. Lewicki, B.H. Sheppard, and M.H. Bazerman
(Greenwich, CT: JAI Press, 1986), pp. 43–55; G.S. Leventhal, “The Distribution of Rewards and Resources in Groups
and Organizations,” in Advances in Experimental Social Psychology, Vol. 9, ed. L. Berkowitz and W. Walster (New York:
Academic Press, 1976), pp. 91–131; G.S. Leventhal, “What Should Be Done with Equity Theory? New Approaches to
the Study of Fairness in Social Relationships,” in Social Exchange: Advances in Theory and Research, ed. K. Gergen, M.
Greenberg, and R. Willis (New York: Plenum Press, 1980), pp. 27–55; and J. Thibaut and L. Walker, Procedural Justice: A
Psychological Analysis (Hillsdale, NJ: Erlbaum, 1975).
Final PDF to printer
205C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 205 10/20/17 02:24 PM
another example, the rules can be used to make compensation practices fairer by ensuring that
accurate measures of job performance are used to provide input for merit raises.
These sorts of procedural justice rules are critical because employment data suggest that gen-
der and race continue to have significant influences on organizational decision making. Compen-
sation data suggest that women earn 83 cents for every dollar earned by a man. Such differences
are even greater in highly skilled jobs such as doctors (63 cents), lawyers (78 cents), financial ana-
lysts (69 cents), and CEOs (74 cents).46 Some portion of the gender pay gap can be explained by
the kinds of fields men and women are drawn to and the “caregiving tax” that some women pay by
being more responsible for child care than male significant others. Even after accounting for such
factors, however, estimates still suggest that women earn 91 cents for every dollar a man makes.47
As a result, sex discrimination cases have risen dramatically in recent years, with each victory
adding weight to existing concerns about justice. As one employment lawyer put it, “Employees
already mistrust employers. So each time a case reveals a secret that was never told, employees
think, ‘Aha! They really are paying men more than women.’ ”48
Compensation data also suggest that African American men earn only 76 percent of what
Caucasian men earn.49 Education differences don’t explain the gap because Caucasian high school
dropouts are twice as likely to find jobs as African American dropouts. Such differences are likely
due to procedural injustice in some form, with procedures functioning in an inconsistent, biased,
and inaccurate manner across Caucasian and African American applicants. Indeed, one study
of almost 9,000 personnel files in an information technology firm found that Caucasian men
received bigger merit raises than minority and female employees, even when their performance
evaluation ratings were identical.50 The study’s author noted, “The disparities are small but very
real. And any difference is evidence of bias.”
Consumer Reports serves as a good example of procedural justice in action. The magazine
conducts the tests for its influential automotive ratings on its own 327-acre test site.51 The rat-
ings are performed by both experienced engineers and more typical drivers, while also taking
into account surveys of the magazine’s print and online subscribers. Consumer Reports helps
ensure bias suppression by refusing to include advertisements in its magazine.52 It also buys
all its test cars anonymously from regular dealerships, as opposed to using the vehicles offered
by automakers. It helps ensure accuracy by putting 5,000–6,000 miles on a car for as long as
10 months and taking the car through approximately 50 different tests. Indeed, to measure fuel
efficiency, it installs a fuel meter directly on the gas line, rather than relying on the accuracy of
the vehicle’s own gauges. Finally, Consumer Reports helps ensure consistency by putting each
vehicle through the exact same set of examinations. Although automakers have occasionally
sued Consumer Reports to protest negative ratings, the magazine has never lost a case and has
never paid a dime in settlements.
You might be wondering, “Does procedural justice really matter—don’t people just care about
the outcomes that they receive?” In the case of Consumer Reports, don’t companies care just about
the score their products receive, not how those scores are actually calculated? Research suggests
that distributive justice and procedural justice combine to influence employee reactions, as shown
in Figure 7-4.53 It’s true that when outcomes are good, people don’t spend as much time worrying
about how fair the process was, as illustrated by the green line in the figure, which shows that pro-
cedural justice has little impact on reactions when outcome favorability is high. However, when
outcomes are bad, procedural justice becomes enormously important, as illustrated by the red line
in the figure. Research shows that negative or unexpected events trigger a thorough examination
of process issues, making adherence to rules like consistency, bias suppression, and accuracy
much more vital.54
In fact, research shows that procedural justice tends to be a stronger driver of reactions to
authorities than distributive justice. For example, meta-analyses of hundreds of studies showed
that procedural justice was a stronger predictor of satisfaction with supervision, overall job satis-
faction, and organizational commitment than distributive justice.55 Why does the decision-making
process sometimes matter more than the decision-making outcome? Likely because employees
understand that outcomes come and go—some may be in your favor while others may be a bit
disappointing. Procedures, however, are longer lasting and stay in place until the organization
redesigns them or a new authority arrives to revise them.
Final PDF to printer
206 C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 206 10/20/17 02:24 PM
INTERPERSONAL JUSTICE In addition to judging the fairness of decision outcomes and pro-
cesses, employees might consider how authorities treat them as the procedures are implemented.
Interpersonal justice reflects the perceived fairness of the treatment received by employees from
authorities.56 Interpersonal justice is fostered when authorities adhere to two particular rules. The
respect rule pertains to whether authorities treat employees in a dignified and sincere manner, and
the propriety rule reflects whether authorities refrain from making improper or offensive remarks.
From this perspective, interpersonal injustice occurs when authorities are rude or disrespectful to
employees, or when they refer to them with inappropriate labels.57
When taken to the extremes, interpersonally unjust actions create abusive supervision, defined
as the sustained display of hostile verbal and nonverbal behaviors, excluding physical contact.58 A
national study suggests that approximately 15 percent of employees are victims of abusive behav-
iors, ranging from angry outbursts to public ridiculing to being used as scapegoats for negative
events.59 Estimates also indicate that such actions cost U.S. businesses around $24 billion annu-
ally due to absenteeism, health care costs, and lost productivity.60 Employees who are abused
by their supervisors report more anxiety, burnout, and strain, as well as less satisfaction with
their lives in general.61 They are also more likely to strike back at their supervisors with coun-
terproductive behaviors—a response that may even spill over to their coworkers and the larger
organization.62
Why are interpersonally unjust actions so damaging? One reason may be that people remem-
ber unfair acts more vividly than fair ones. One study asked 41 employees to complete a survey on
interactions with authorities and coworkers four times a day for two to three weeks.63 Two kinds
of interactions were coded—positive experiences and negative experiences—and participants also
reported on their current mood (e.g., happy, pleased, sad, blue, unhappy). The results of the study
showed that positive interactions were more common than negative interactions, but the effects
of negative interactions on mood were five times stronger than the effects of positive interactions.
Such findings suggest that a violation of the respect and propriety rules looms much larger than
adherence to those rules.64
For these reasons, some companies have taken advantage of a growing number of “civility train-
ing” programs offered by consulting firms.65 One such program is CREW—Civility, Respect, and
Engagement in the Workplace—that was developed for the Veterans Health Administration, the
FIGURE 7-4 Combined Effects of Distributive and Procedural Justice
Low High
Procedural Justice
R
ea
ct
io
n
s
to
A
u
th
o
ri
ty
High Distributive Justice
Low Distributive Justice
Source: Adapted from J. Brockner and B.M. Wiesenfeld, “An Integrative Framework for Explaining Reactions to
Decisions: Interactive Effects of Outcomes and Procedures,” Psychological Bulletin 120 (1996), pp. 189–208.
Final PDF to printer
207C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 207 10/20/17 02:24 PM
Washington, DC–based hospital arm of the
Veterans Affairs Department. The program
was administered to more than 900 work-
groups over a six-month period, with the groups
learning about the benefits of respectful com-
munication and how to bring more civility to
contentious situations, such as problem solving
and dispute contexts. The director of organiza-
tional health for the VHA said, “It’s a simplistic
formula. It’s just: How do we want to treat each
other?”66 She noted that the benefits of the
program seemed to be “viral,” with increased
respect being contagious at the VHA.
INFORMATIONAL JUSTICE Finally, employees may consider the kind of information that
authorities provide during the course of organizational decision making. Informational justice
reflects the perceived fairness of the communications provided to employees from authorities.67
Informational justice is fostered when authorities adhere to two particular rules. The justification
rule mandates that authorities explain decision-making procedures and outcomes in a compre-
hensive and reasonable manner, and the truthfulness rule requires that those communications
be honest and candid. Although it seems like common sense that organizations would explain
decisions in a comprehensive and adequate manner, that’s often not the case. Sharing bad news
is the worst part of the job for most managers, leading them to distance themselves when it’s
time to play messenger.68 A survey of 372 human resources professionals revealed that almost
75 percent felt stress, anxiety, and depression when they had to conduct layoffs during the eco-
nomic downturn.69
Managers also worry about triggering a lawsuit if they comprehensively and honestly explain
the reasons for a layoff, a poor evaluation, or a missed promotion. Ironically, that defense mecha-
nism is typically counterproductive because research suggests that honest and adequate explana-
tions are actually a powerful strategy for reducing retaliation responses against the organization.70
In fact, low levels of informational justice can come back to haunt the organization if a wrongful
termination claim is actually filed. How? Because the organization typically needs to provide
performance evaluations for the terminated employee over the past few years, to show that the
employee was fired for poor performance.71 If managers refrained from offering candid and hon-
est explanations on those evaluations, then the organization can’t offer anything to justify the
termination.
One study provides a particularly effective demonstration of the power of informational justice
(and interpersonal justice). The study occurred in three plants of a midwestern manufacturing
company that specialized in small mechanical parts for the aerospace and automotive indus-
tries.72 The company had recently lost two of its largest contracts and was forced to cut wages by
15 percent in two of the three plants. The company was planning to offer a short, impersonal
explanation for the pay cut to both of the affected plants. However, as part of a research study, the
company was convinced to offer a longer, more sincere explanation at one of the plants. Theft lev-
els were then tracked before, during, and after the 10-week pay cut using the company’s standard
accounting formulas for inventory “shrinkage.”
The results of the study are shown in Figure 7-5. In the plant without the pay cut, no change
in theft levels occurred over the 10-week period. In the plant with the short, impersonal explana-
tion, theft rose dramatically during the pay cut, likely as a means of retaliating for perceived ineq-
uity, before falling to previous levels once the cut had passed. Importantly, in the plant with the
long, sincere explanation, the rise in theft was much less significant during the pay cut, with theft
levels again falling back to normal levels once the cut had ended. Clearly, the higher levels of infor-
mational and interpersonal justice were worth it from a cost-savings perspective. The difference in
theft across the two plants is remarkable, given that the long, sincere explanation was only a few
minutes longer than the short, impersonal explanation. What’s a few extra minutes if it can save a
few thousand dollars?
When interpersonal
injustice gets taken to the
extreme, it can turn into
abusive supervision.
Estimates suggest that
15 percent of employees
are victims of abusive
behaviors at work.
©John Foxx/Getty Images
Final PDF to printer
208 C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 208 10/20/17 02:24 PM
Source: Adapted from J. Greenberg, “Employee Theft as a Reaction to Underpayment Inequity: The Hidden Cost of Payc-
uts,” Journal of Applied Psychology 75 (1990), pp. 561–68.
FIGURE 7-5 The Effects of Justice on Theft During a Pay Cut
Before
2.0
10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
AfterDuring
Time Period Relative to Pay Cut
A
ve
ra
g
e
%
R
a
te
o
f
E
m
p
lo
ye
e
T
h
e
ft
Long, Sincere Explanation for Pay Cut
Short, Impersonal Explanation for Pay Cut
No Pay Cut
SUMMARY Taken together, distributive, procedural, interpersonal, and informational justice can
be used to describe how fairly employees are treated by authorities. When an authority adheres
to the justice rules in Table 7-2, those actions provide behavioral data that the authority might
be trustworthy. Indeed, studies show that all four justice forms have strong correlations with
employee trust levels.73 All else being equal, employees trust authorities who allocate outcomes
fairly; make decisions in a consistent, unbiased, and accurate way; and communicate decision-
making details in a respectful, comprehensive, and honest manner. Which authorities are most
likely to adhere to these sorts of rules? Research on ethics can provide some answers.
E T H I C S
Research on ethics seeks to explain why people behave in a manner consistent with generally
accepted norms of morality and why they sometimes violate those norms.74 The study of business
ethics has two primary threads to it. One thread is prescriptive in nature, with scholars in philoso-
phy debating how people ought to act using various codes and principles.75 The prescriptive model
is the dominant lens in discussions of legal ethics, medical ethics, and much of economics. The
second thread is descriptive in nature, with scholars relying on scientific studies to observe how
people tend to act based on certain individual and situational characteristics. The descriptive
model is the dominant lens in psychology. Although the differences between these two threads
give the study of business ethics a certain complexity, the philosophical and empirical approaches
can be integrated to develop a more complete understanding of ethical behavior.
Some studies of business ethics focus on unethical behavior—behavior that clearly violates
accepted norms of morality.76 Unethical behaviors in organizations can be directed at employees
(e.g., discrimination, harassment, health and safety violations, ignoring labor laws), customers (e.g.,
invading privacy, violating contract terms, using false advertising, fabricating test results), financiers
(e.g., falsifying financial information, misusing confidential information, trading securities based
on inside information), or society as a whole (e.g., violating environmental regulations, exposing
the public to safety risks, doing business with third parties who are themselves unethical).77 How
Final PDF to printer
209C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 209 10/20/17 02:24 PM
If unethical actions are defined as behaviors that fall below minimum standards of morality, the
key question becomes, “Whose standards of morality?” Research on business ethics across cul-
tures reveals that different countries have different baseline levels of unethical actions. Transpar-
ency International is an organization that monitors unethical practices in countries around the
world. Using data from businesspeople, risk analysts, investigative journalists, country experts, and
public citizens, the organization rates countries on a scale of 1 (unethical) to 10 (ethical). Here
are some of the scores from the 1999 version of the rankings:
OB INTERNATIONALLY
SCORE COUNTRY SCORE COUNTRY
10.0 Denmark 3.8 South Korea
9.8 Finland 3.6 Turkey
9.4 Sweden 3.4 China
9.2 Canada 3.4 Mexico
8.7 Australia 3.2 Thailand
8.6 Germany 3.0 Argentina
7.7 Hong Kong 2.9 Colombia
7.7 Ireland 2.9 India
7.5 United States 2.6 Ukraine
6.8 Israel 2.6 Venezuela
6.6 France 2.6 Vietnam
6.0 Japan 2.4 Russia
4.9 Greece 1.6 Nigeria
4.7 Italy 1.5 Cameroon
These rankings reveal the challenges involved for any multinational corporation that does busi-
ness in areas at the top and bottom of the rankings. Should the company have the same ethical
expectations for employees in all countries, regardless of ethical norms? For now, that seems to be
the most common position. For example, the Coca-Cola Company’s Code of Business Conduct
“applies to all the Company’s business worldwide and to all Company employees.” The code is
given to all employees and covers topics such as conflicts of interest, dealing with government
officials, customer and supplier interactions, and political contributions. The code also describes
the disciplinary actions associated with any violations of the code.
Source: D. C. Robertson, “Business Ethics Across Cultures,” in The Blackwell Handbook of Cross-Cultural Management, ed.
M.J. Gannon and K.L. Newman (Malden, MA: Blackwell, 2002), pp. 361–92.
prevalent are such behaviors? Recent surveys suggest that 76 percent of employees have observed
illegal or unethical conduct in their organizations within the past 12 months.78 Those base rates
may be even higher in some countries, as described in our OB Internationally feature.
Other studies focus on what might be termed “merely ethical” behavior—behavior that adheres
to some minimally accepted standard of morality.79 Merely ethical behaviors might include obeying
Final PDF to printer
210 C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 210 10/20/17 02:24 PM
labor laws and complying with formal rules and contracts. Still other studies focus on what could
be called “especially ethical” behaviors—behaviors that exceed some minimally accepted stan-
dard of morality. Especially ethical behaviors might include charitable giving or whistle-blowing,
which occurs when former or current employees expose illegal or immoral actions by their organi-
zation.80 Whistle-blowing can be viewed as especially ethical because whistle-blowers risk potential
retaliation by other members of the organization, especially when whistle-blowers lack status and
power.81 Ironically, the company often winds up benefitting from that risk taking, as whistle-blowing
can bring significant improvements to the ethical culture in an organization over the long term.82
Why do some authorities behave unethically while others engage in ethical (or especially ethi-
cal) behaviors? One set of answers can be derived from research in social psychology. The four-
component model of ethical decision making argues that ethical behaviors result from a multistage
sequence beginning with moral awareness, continuing on to moral judgment, then to moral intent,
and ultimately to ethical behavior.83 Figure 7-6 presents an adaptation of this model. In addition
to depicting the four components, the figure illustrates that unethical behavior can be triggered by
characteristics of a person or the situation.84 Put differently, and drawing on the adage “one bad
apple can spoil the barrel,” ethical behavior can be driven by both good versus bad apples and good
versus bad barrels.85 The sections that follow review the components of this model in more detail.
MORAL AWARENESS The first step needed to explain why an authority acts ethically is moral
awareness, which occurs when an authority recognizes that a moral issue exists in a situation
or that an ethical code or principle is relevant to the circumstance.86 Ethical issues rarely come
equipped with “red flags” that mark them as morally sensitive.87 Sometimes authorities act unethi-
cally simply because they don’t perceive that moral issues are relevant in a given situation, so
the ethical merits of certain actions are never debated. For example, let’s say you own a clothing
retailer that specializes in fashion-forward styles at low prices. You know that Diane von Furst-
enberg’s styles are hot this year, and your buying team just discovered a vendor that makes cheap
knockoffs of those styles. Do you buy clothes from that vendor and hang them on your racks?
Is there an ethical issue at play here? On the one hand, you might be tempted to say that imi-
tation is the way that fashion trends spread—that the “gurus of style” expect their products to be
7.5
What is the four-component
model of ethical decision
making?
FIGURE 7-6 The Four-Component Model of Ethical Decision Making
Situational Factors
(Good vs. Bad Barrels)
Individual Factors
(Good vs. Bad Apples)
Ethical
Behavior
Moral
Intent
Moral
Judgment
Moral
Awareness
Photos: (top): ©Siede Preis/Getty Images; (bottom): ©C Squared Studios/Getty Images. Text Source: Adapted from J.R. Rest,
Moral Development: Advances in Research and Theory (New York: Praeger, 1986).
Final PDF to printer
211C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 211 10/20/17 02:24 PM
copied. Besides, a skirt is a skirt, and knockoffs are part of the game in a lot of businesses. On
the other hand, Diane von Furstenberg’s styles are her intellectual property, and the people who
work for her label put a great deal of time, effort, and talent into their clothes. It turns out this
scenario has played out with Forever 21, the Los Angeles–based specialty retailer.88 More than
50 labels have sued Forever 21 for copying their clothes, including Diane von Furstenberg, Anna
Sui, and Anthropologie. “Their design is swathed in mystery,” notes one expert on copyright law.
“But it probably looks a bit like a crime scene, with the chalk outline of the garments they’re copy-
ing.”89 Such charges are difficult to prove because U.S. copyright law protects original prints and
graphics, not actual designs. Forever 21 wound up settling those lawsuits, noting that the company
ultimately has to trust the integrity of its clothing vendors. Indeed, one executive notes that she
chooses from among 400 items a day, spending only about 90 seconds to review a piece.
Moral awareness depends in part on characteristics of the issue itself, as some issues have more
built-in ethical salience than others. A concept called moral intensity captures the degree to which
an issue has ethical urgency.90 As described in Table 7-3, moral intensity is driven by two general
concerns, both of which have more specific facets.91 First and foremost, a particular issue is high
in moral intensity if the potential for harm is perceived to be high. An act that could injure 1,000
people is more morally intense than an act that could injure 10 people, and an act that could result
in death is more morally intense than an act that could result in illness.92 Second, a particular
issue is high in moral intensity if there is social pressure surrounding it. An act that violates a
clear social norm is more morally intense than an act that seems similar to what everyone else is
doing. In the case of Forever 21, moral intensity might seem low because selling cheap knockoffs
benefits its customers, and interactions with customers are much more common and salient than
interactions with designers.
Moral awareness also depends on the way authorities observe and perceive the events that
happen around them. A concept called moral attentiveness captures the degree to which people
TABLE 7-3 The Dimensions of Moral Intensity
GENERAL DIMENSION SPECIFIC FACET DESCRIPTION
Potential for harm Magnitude of consequences How much harm would be done to
other people?
Probability of effect How likely is it that the act will actually
occur and that the assumed conse-
quences will match predictions?
Temporal immediacy How much time will pass between
the act and the onset of its
consequences?
Concentration of effect Will the consequences be concen-
trated on a limited set of people, or
will they be more far reaching?
Social pressure Social consensus How much agreement is there that
the proposed act would be unethical?
Proximity How near (in a psychological or physi-
cal sense) is the authority to those
who will be affected?
Sources: Adapted from T.M. Jones, “Ethical Decision Making by Individuals in Organizations: An Issue-Contingent
Model,” Academy of Management Review 16 (1991), pp. 366–95; and A. Singhapakdi, S.J. Vitell, and K.L. Kraft, “Moral
Intensity and Ethical Decision-Making of Marketing Professionals,” Journal of Business Research 36 (1996), pp. 245–55.
Final PDF to printer
212 C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 212 10/20/17 02:24 PM
chronically perceive and consider issues of morality during their experiences.93 Research in cog-
nitive psychology shows that people pay more attention to stimuli that are significant, vivid, and
recognizable. Authorities who are morally attentive tend to view the world through a lens of
morality, giving ethical issues a particular significance, vividness, and recognizability. That lens
colors the way they identify and interpret information and also shapes the way they analyze and
reflect on it. Morally attentive people are likely to report that they face several ethical dilemmas
in a typical day, that many of the decisions they face have ethical consequences, that they regu-
larly think about issues of morality, and that they enjoy pondering moral issues. In the case of
Forever 21, it may be that top management was not morally attentive enough to recognize that
buying copies of more expensive designs represented an ethical issue. That premise may make
some sense, given that Forever 21 has had other ethical struggles. It has settled multiple lawsuits
with garment workers’ groups alleging unfair business practices and wage violations. The com-
pany claims it didn’t know about the conditions in its suppliers’ factories, but lawyers maintain
that the company squeezes suppliers so much on price that they are partially responsible for
the violations.
Some business schools are taking an unusual approach to increasing moral awareness on the
part of their students. New York University, the University of California at Berkeley, Purdue, and
Penn State have invited convicted white-collar criminals to speak to students about their unethical
actions, as well as the consequences of those actions.94 For example, Walter Pavlo Jr. earns up
to $2,500 a visit to detail the $6 million money-laundering scheme he perpetrated at MCI. The
40-year-old served two years in federal prison and is now divorced, unemployed, and living with
his parents. Such testimonials can highlight the potential harm involved in unethical actions while
also making students a bit more attentive to ethical issues. Although some professors consider the
payment of convicted felons to be an ethical issue in its own right, part of what Pavlo earns goes
to make restitution for his crimes. One professor at Penn State summarizes, “Here’s a real person
telling students what happened to his life. I don’t think there’s any substitute for that.”95
MORAL JUDGMENT Some authorities may recognize that a moral issue exists in a given situ-
ation but then be unable to determine whether a given course of action is right or wrong. The
second step needed to explain why an authority acts ethically is therefore moral judgment, which
reflects the process people use to determine whether a particular course of action is ethical or
Forever 21, a Los
Angeles–based specialty
retailer, has been sued by
more than 50 labels for
allegedly stealing their
designs in order to sell sig-
nificantly cheaper versions
to its customers.
©Robert Marquardt/Getty Images
Final PDF to printer
213C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 213 10/20/17 02:24 PM
unethical.96 One of the most important factors influencing moral judgment is described in Kohl-
berg’s theory of cognitive moral development.97 This theory argues that as people age and mature,
they move through various stages of moral development—each more mature and sophisticated
than the prior one. All else equal, authorities who operate at more mature stages of moral develop-
ment should demonstrate better moral judgment. You might wonder how the moral development
of a person can be measured. One approach is to give people a series of ethical dilemmas like the
one in Table 7-4, then ask questions to gain insights into their decision-making process.98
According to Kohlberg, people begin their moral development at the preconventional stage.99
At this stage, right versus wrong is viewed in terms of the consequences of various actions for the
individual. For example, children seek to avoid punishment for its own sake, regardless of any con-
cern about moral order. Similarly, children obey adults for its own sake, regardless of the respect
or wisdom shown by those adults. Over time, the desire to obtain pleasure and avoid pain expands
to the formation of “you scratch my back, I’ll scratch yours” sort of exchanges. Such relationships
remain self-interested however, with little concern for loyalty, gratitude, or fairness. In the case of
the ethical dilemma in Table 7-4, viewing question 1 as one of the most important issues would
signal preconventional thinking.
As people mature, their moral judgment reaches the conventional stage.100 At this stage, right
versus wrong is referenced to the expectations of one’s family and one’s society. At first, people
seek the approval of friends and family members, conforming to stereotypes about what’s right.
Question 2 in Table 7-4 reflects this sort of priority. Over time, people come to emphasize the
laws, rules, and orders that govern society. Concepts such as doing one’s duty and maintaining the
social order come to be valued for their own sakes. Question 3 reflects this level of moral sophis-
tication. Research suggests that most adults find themselves at the conventional stage.101 That
positioning is relevant to organizations because it shows that moral judgment can be influenced
by organizational policies, practices, and norms.
The most sophisticated moral thinkers reach the principled (or postconventional) stage.102
At this stage, right versus wrong is referenced to a set of defined, established moral principles.
Research suggests that fewer than 20 percent of Americans reach this principled stage.103 Philoso-
phers have identified a number of moral principles that serve as prescriptive guides for making
moral judgments, with some of the most influential shown in Table 7-5. Rather than viewing a
TABLE 7-4 Ethical Dilemma Used to Assess Moral Development
Chris is an accountant who is in charge of creating budget projections for all of the depart-
ments in the company. Chris’s job is to draw on both data from the past and potential changes
in the future to create those projections. The projections then decide how much money
department heads can spend during the fiscal year. After creating and releasing the projec-
tions for this year, Chris noticed an error in the calculations. Although the error is not large, it is
not insignificant either. And it will result in departments having less money to spend than they
really should. No one else has noticed the error and it is very unlikely that anyone will, given
who has access to the information. Should Chris come forward and admit the error?
On a scale from 1 = No Importance to 5 = Great Importance, rate how important each of the
following questions are to your decision:
1. Could Chris receive a harsher punishment if the company finds the mistake without his/her
help?
2. Whether Chris’s subordinates and peers would lose faith in Chris if Chris is caught instead of
reporting the mistake himself/herself.
3. Whether or not company policy ought to be respected by all employees.
4. Would reporting the mistake do any good for Chris or society?
5. What values Chris has set for himself/herself in his/her personal code of behavior.
Source: Adapted from Greg Loviscky, “Assessing Managers’ Ethical Decision-Making: An Objective Measure of Manage-
rial Moral Judgment,” Journal of Business Ethics, Vol. 73. 2007, Springer Netherlands.
Final PDF to printer
214 C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 214 10/20/17 02:24 PM
TABLE 7-5 Moral Principles Used in the Principled Stage
TYPE OF PRINCIPLE SPECIFIC PRINCIPLE DESCRIPTION (AND CONTRIBUTORS)
Consequentialist Utilitarianism An act is morally right if it results in the great-
est amount of good for the greatest number
of people—sometimes termed the “greatest
happiness principle” (Jeremy Bentham, John
Stuart Mill).
Egoism An act is morally right if the decision maker
freely decides to pursue either short-term or
long-term interests. Markets are purported to
limit the degree to which one egoist’s inter-
ests harm the interests of another (Adam
Smith).
Nonconsequentialist Ethics of duties An act is morally right if it fulfills the “cat-
egorical imperative”—an unambiguously
explicit set of three crucial maxims: (a) the
act should be performable by everyone with
no harm to society; (b) the act should respect
human dignity; (c) the act should be endors-
able by others (Immanuel Kant).
Ethics of rights An act is morally right if it respects the
natural rights of others, such as the right to
life, liberty, justice, expression, association,
consent, privacy, and education (John Locke,
John Rawls).
Virtue ethics An act is morally right if it allows the deci-
sion maker to lead a “good life” by adhering
to virtues like wisdom, honesty, courage,
friendship, mercy, loyalty, modesty, and
patience (Aristotle).
Source: Adapted from A. Crane and D. Matten, Business Ethics (New York: Oxford University Press, 2007).
given principle as the single, best lens for making decisions, it’s better to view the principles as a
prism for shedding light on a given situation from a number of different angles.104 The consequen-
tialist principles in Table 7-5 judge the morality of an action according to its goals, aims, or out-
comes (these principles are sometimes termed “teleological,” after the Greek word for “goal”).105
Question 4 in Table 7-4 reflects these sorts of concerns. The nonconsequentialist principles judge
the morality of an action solely on its intrinsic desirability (these principles are sometimes termed
“deontological,” after the Greek word for “duty,” or “formalist,” due to their emphasis on formal-
ized codes and standards). Viewing question 5 as one of the most important issues in the dilemma
would signal nonconsequentialist thinking.
Returning to the Forever 21 example, a utilitarian analysis would focus on whether the “great-
est happiness” was created by giving their customers access to cutting-edge designs at cheap
prices, even if doing so harmed the profitability of the labels. An egoistic analysis would focus on
whether buying “copycat” clothes from vendors boosted the short-term and long-term interests of
the company. Is selling those clothes vital to the company’s mission, or are the risks to the reputa-
tion and brand of the company severe enough that a change in course is warranted? Although the
takeaways from those analyses may be debatable, the judgment of the three remaining principles
Final PDF to printer
215C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 215 10/20/17 02:24 PM
seems clearer. From the perspective of the ethics of duties, society would clearly be harmed if all
companies copied the intellectual property of their competitors, though some customers would
likely endorse the company’s practices. From an ethics of rights perspective, Forever 21’s actions
can be viewed as disrespecting the designers’ rights to consent and expression (and justice, given
that they were offered no compensation for the use of their intellectual property). Finally, an
analysis using virtue ethics would suggest that Forever 21’s actions lacked the virtue of honesty.
MORAL INTENT Assuming that an authority recognizes that a moral issue exists in a situation
and possesses the cognitive moral development to choose the right course of action, one step
remains: The authority has to want to act ethically. Moral intent reflects an authority’s degree of
commitment to the moral course of action.106 The distinction between awareness or judgment
on the one hand and intent on the other is important, because many unethical people know and
understand that what they’re doing is wrong—they just choose to do it anyway. Why? Sometimes
situational factors encourage people to go against their moral convictions. For example, organiza-
tions may possess unethical cultures, where violations of moral codes become the rule rather than
the exception (see Chapter 16 on organizational culture for more discussion of such issues).107 As
another example, economic pressures from assigned goals or specific incentives can encourage
people to set aside their moral judgment, at least for a time.108
What explains the ability of some people to resist situational pressures and stay true to their
moral judgment? One factor is moral identity—the degree to which a person self-identifies as a
moral person.109 Our self-concepts have a number of components to them: We may define our-
selves by what we do, where we come from, what our family status is, or what cultural or ethnic
groups we belong to. People with strong moral identities define themselves as compassionate,
generous, honest, kind, fair, and hardworking. Their emotional well-being and sense of self is
wrapped up in living up to those virtues. Moreover, the actions they take in their daily life—from
the things they buy, to the hobbies they have, to the groups they join—are viewed as symbols
of those virtues. Research suggests that people with strong moral identities volunteer more for
charitable work and donate more to charity drives.110 Research also suggests that moral iden-
tity “moderates” the effects of moral judgment on ethical behavior. Recall that in the language
of theory diagrams, moderators affect the strength of the relationship between two variables.
For example, one study shows that managers who emphasize specific ethics principles are
less likely to engage in unethical behaviors (e.g., calling in sick to take a day off, ignoring
others’ unethical actions), but only when they define themselves as a moral person.111 When
morality is not an important piece of their identity, their moral principles have no relation-
ship with their actual behavior. For an example of low moral identity in the fast food industry,
see our OB on Screen feature.
SUMMARY Taken together, the stages of the four-component model can be used to explain why
authorities act in an ethical or unethical manner. When authorities are morally aware, when
they have sophisticated moral judgment, and when they possess strong moral intent, chances
are their actions will tend to be ethical. By extension, those authorities should attend more to
the rules of distributive, procedural, interpersonal, and informational justice, because treating
employees fairly is itself an ethical act.112 Those authorities should also be viewed as trustworthy,
in that moral awareness, judgment, and intent should result in higher levels of both benevolence
and integrity.
S U M M A RY: W H Y A R E S O M E AU T H O R I T I E S
M O R E T R U ST E D T H A N OT H E R S ?
So what explains why some authorities are more trusted than others? As shown in Figure 7-7,
answering that question requires understanding the different sources in which trust can be
rooted, including dispositions, cognitions, and affect. Disposition-based trust is rooted in an
individual’s trust propensity, whereas affect-based trust is rooted in a fondness for the authority.
Cognition-based trust is driven by perceptions of trustworthiness, as employees attempt to assess
the ability, benevolence, and integrity of authorities. Unfortunately, it’s often difficult to gauge
Final PDF to printer
216 C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 216 10/20/17 02:24 PM
OB ON SCREEN
THE FOUNDER
Mac, I’m the President and CEO of a major corporation with land holdings in 17 states. You run
a burger stand in the desert.
With those words, Ray Kroc (Michael Keaton) seizes control of McDonald’s from Mac and Dick
McDonald (John Carroll Lynch and Nick Offerman) in The Founder (Dir. John Lee Hancock, Film-
nation, 2016). Ray had been in the restaurant supply business when two brothers in California placed
an unusually large order. When he visited their burger stand, he was instantly awed by the “speedy
system” they’d created. A perfectly engineered process where a fresh hamburger gets a few squirts of
mustard and ketchup, two pickles, and some diced onions—all within 30 seconds of ordering. Through
sheer force of personality, Ray convinced the McDonald brothers to make him head of franchising.
As Ray led the expansion of the chain in the Midwest, he became increasingly bothered by
Mac and Dick’s resistance to new ideas. For example, Ray wanted to use a powdered mix for the
milkshakes to save money, but the brothers were resolute in maintaining their high standards. Ray
had little recourse because the contract he signed gave the brothers full control over restaurant-
related decisions. It was then that an advisor of Ray’s gave him an idea: he could start a separate
company that would control the land upon which new locations would operate. The franchisees
would lease the land from him, giving him a separate revenue stream (and more leverage).
Eventually Ray became powerful enough that he violated the terms of his contract with Mac
and Dick, noting “Contracts are like hearts . . . they’re made to be broken.” Such moves revealed
Ray as having less of a moral identity than Mac or Dick. They were driven by doing “the right
thing” for their vision and their customers. Ray was not. When Mac lashed out to say that they
had invented the things that made McDonald’s great, not him, Ray corrected: “You know what I
came up with Mac? I came up with the concept of winning. . . . If my competitor were drowning,
I’d walk over and put a hose right in his mouth. Can you say the same?”
Source: Dir. John Lee Hancock, “The Founder” Filmnation, 2016
©Entertainment Pictures/Alamy
trustworthiness accurately, so employees instead look to more observable behaviors that can be
used as indirect evidence of trustworthiness. Those behaviors may center on the justice of authori-
ties, with employees considering the distributive, procedural, interpersonal, and informational
justice they have experienced at work. The justice and general trustworthiness of authorities in
turn can be explained by authorities’ own moral awareness, moral judgment, and moral intent.
Final PDF to printer
217C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 217 10/20/17 02:24 PM
FIGURE 7-7 Why Are Some Authorities More Trusted Than Others?
Trust
Ability
Benevolence
Integrity
Trust
Propensity
Feelings toward
Trustee
Trustworthiness
Distributive
Justice
Procedural
Justice
Interpersonal
Justice
Informational
Justice
Justice
Moral
Awareness
Moral
Judgment
Moral
Intent
Ethical
Behavior
Ethics
H O W I M P O R TA N T I S T R U S T ?
Does trust have a significant impact on the two primary outcomes in our integrative model
of OB—does it correlate with job performance and organizational commitment? Figure 7-8
summarizes the research evidence linking trust to job performance and organizational commit-
ment. The figure reveals that trust does affect job performance. Why? One reason is that trust is
moderately correlated with task performance. A study of employees in eight plants of a tool manu-
facturing company sheds some light on why trust benefits task performance.113 The study gave
employees survey measures of their trust in two different authorities: their plant’s manager and the
company’s top management team. Both trust measures were significant predictors of employees’
7.6
How does trust affect job
performance and organiza-
tional commitment?
Final PDF to printer
218 C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 218 10/20/17 02:24 PM
ability to focus, which reflects the degree to which employees can devote their attention to work,
as opposed to “covering their backside,” “playing politics,” and “keeping an eye on the boss.”
The ability to focus is clearly vital to task performance in many jobs, particularly when job duties
become more complex.
Trust also influences citizenship behavior and counterproductive behavior. Why? One reason
is that the willingness to accept vulnerability changes the nature of the employee–employer rela-
tionship. Employees who don’t trust their authorities have economic exchange relationships that
are based on narrowly defined, quid pro quo obligations that are specified in advance and have
an explicit repayment schedule.114 Economic exchanges are impersonal and resemble contractual
agreements, such that employees agree to fulfill the duties in their job description in exchange
for financial compensation. As trust increases, social exchange relationships develop that are
based on vaguely defined obligations that are open-ended and long term in their repayment sched-
ule.115 Social exchanges are characterized by mutual investment, such that employees agree to go
above and beyond their duties in exchange for fair and proper treatment by authorities. In social
exchange contexts, employees are willing to engage in beneficial behaviors because they trust that
those efforts will eventually be rewarded (see Chapter 3 on organizational commitment for more
discussion of such issues).
Figure 7-8 also reveals that trust affects organizational commitment. Why? One reason is that
trusting an authority increases the likelihood that an emotional bond will develop,116 particularly
if that trust is rooted in positive feelings for the authority. Trusting an authority also makes it
more likely that a sense of obligation will develop, because employees feel more confident that the
FIGURE 7-8 Effects of Trust on Performance and Commitment
Trust has a moderate positive e�ect on Performance. Employees who are willing to be
vulnerable to authorities tend to have higher levels of Task Performance. They are also
more likely to engage in Citizenship Behavior and less likely to engage in
Counterproductive Behavior.
Trust has a strong positive e�ect on Commitment. Employees who are willing to be
vulnerable to authorities tend to have higher levels of A�ective Commitment and
higher levels of Normative Commitment. Trust has no e�ect on Continuance
Commitment.
Job
Performance
Trust
Organizational
Commitment
Trust
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
Sources: K.T. Dirks and D.L. Ferrin, “Trust in Leadership: Meta-Analytic Findings and Implications for Research and
Practice,” Journal of Applied Psychology 87 (2002), pp. 611–28; and J.A. Colquitt, B.A. Scott, and J.A. LePine, “Trust,
Trustworthiness, and Trust Propensity: A Meta-Analytic Test of Their Unique Relationships with Risk Taking and Job
Performance,” Journal of Applied Psychology 92 (2007), pp. 909–27.
Final PDF to printer
219C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 219 10/20/17 02:24 PM
authority deserves that obligation. When negative events occur, employees who trust the authority
are willing to accept the vulnerability that comes with continued employment,117 remaining confi-
dent in their belief that the situation will eventually improve.
A P P L I C AT I O N : S O C I A L R E S P O N S I B I L I T Y
Now that you understand the factors that drive trust in authorities and the importance of trust lev-
els to performance and commitment, we turn our attention to a very practical question: “How can
organizations become more trustworthy?” Certainly that’s a big question with no single answer.
However, one strategy is to focus the organization’s attention on corporate social responsibility,
a perspective that acknowledges that the responsibilities of a business encompass the economic,
legal, ethical, and citizenship expectations of society.118 This perspective maintains the belief that
the foundation of any business is profitability, because organizations must fulfill their economic
responsibilities to their employees and their shareholders. However, the social responsibility
lens supplements that belief by arguing that the company’s obligations do not end with profit
maximization.
The legal component of corporate social responsibility argues that the law represents soci-
ety’s codification of right and wrong and must therefore be followed.119 Fulfilling this component
speaks to the integrity of the organization and suggests that it has reached the conventional level
of moral development. Further violations of intellectual property or labor laws on Forever 21’s
part would signal a breach of this component, so protecting its reputation will likely require an
emphasis on the origins of vendors’ designs and a monitoring of their factory conditions. Many
organizations turn to compliance officers to police the legality of their operations. For example,
Computer Associates International, a New York–based maker of computer security software,
recently installed a new compliance officer.120 As part of a series of reforms to avoid a trial over
accounting fraud, the company gave its new officer, who was a former chief trial attorney for the
U.S. Navy, unprecedented power. The officer has direct access to the CEO, can go over the CEO’s
head if need be, and has the authority to fire managers and employees who violate company
guidelines.
The ethical component of corporate social responsibility argues that organizations have an
obligation to do what is right, just, and fair and to avoid harm.121 Fulfilling this component is
relevant to the benevolence and integrity of the organization and suggests that it has reached the
principled level of moral development.122 Regardless of its legal implications, the way Forever
21 manages its relationships with its vendors speaks to the ethical makeup of its culture. What
can organizations do to improve that ethical makeup? J.M. Smuckers, the Orrville, Ohio–based
food and beverage maker, requires all of its 3,500 employees to attend training sessions on moral
awareness and moral judgment. Employees go through programs every 3–5 years and sign a nine-
page ethics statement annually. That statement, which the company treats as a living document,
spells out the codes and principles that Smuckers employees can use to navigate moral dilemmas.
The citizenship component of corporate social responsibility argues that organizations should
contribute resources to improve the quality of life in the communities in which they work.123
Sometimes this component involves philanthropic efforts, in which donations of time or cash
are given to charitable groups. At Home Depot, for example, 50,000 of its 325,000 employees
donated a total of 2 million hours to community groups in a single year.124 The citizenship com-
ponent may also involve efforts geared toward environmental sustainability. On that front, a num-
ber of notable companies, from Nike to Walmart to General Electric, have focused on adopting
“green” manufacturing processes.125 Walmart has taken steps to reduce waste and inefficiency, an
important goal given that the company is the nation’s largest private user of electricity.126 General
Electric issues an annual “citizenship report” to highlight several aspects of its corporate social
responsibility, from increases in volunteer hours to efforts to reduce air pollution.127
7.7
What steps can organiza-
tions take to become more
trustworthy?
Final PDF to printer
220 C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 220 10/20/17 02:24 PM
K E Y T E R M S
• Reputation p. 196
• Trust p. 196
• Justice p. 197
• Ethics p. 197
• Disposition-based trust p. 197
• Cognition-based trust p. 197
• Affect-based trust p. 197
• Trust propensity p. 197
• Trustworthiness p. 199
• Ability p. 200
• Benevolence p. 200
• Integrity p. 201
• Distributive justice p. 203
• Procedural justice p. 204
• Interpersonal justice p. 206
• Abusive supervision p. 206
• Informational justice p. 207
• Whistle-blowing p. 210
7.1 Trust is the willingness to be vulnerable to an authority based on positive expectations about
the authority’s actions and intentions. Justice reflects the perceived fairness of an author-
ity’s decision making and can be used to explain why employees judge some authorities
as more trustworthy than others. Ethics reflects the degree to which the behaviors of an
authority are in accordance with generally accepted moral norms and can be used to explain
why authorities choose to act in a trustworthy manner.
7.2 Trust can be disposition-based, meaning that one’s personality includes a general propensity
to trust others. Trust can also be cognition-based, meaning that it’s rooted in a rational
assessment of the authority’s trustworthiness. Finally, trust can be affect-based, meaning
that it’s rooted in feelings toward the authority that go beyond any rational assessment of
trustworthiness.
7.3 Trustworthiness is judged along three dimensions. Ability reflects the skills, competencies,
and areas of expertise that an authority possesses. Benevolence is the degree to which an
authority wants to do good for the trustor, apart from any selfish or profit-centered motives.
Integrity is the degree to which an authority adheres to a set of values and principles that
the trustor finds acceptable.
7.4 The fairness of an authority’s decision making can be judged along four dimensions. Distrib-
utive justice reflects the perceived fairness of decision-making outcomes. Procedural justice
reflects the perceived fairness of decision-making processes. Interpersonal justice reflects
the perceived fairness of the treatment received by employees from authorities. Informa-
tional justice reflects the perceived fairness of the communications provided to employees
from authorities.
7.5 The four-component model of ethical decision making argues that ethical behavior depends
on three concepts. Moral awareness reflects whether an authority recognizes that a moral
issue exists in a situation. Moral judgment reflects whether the authority can accurately
identify the “right” course of action. Moral intent reflects an authority’s degree of commit-
ment to the moral course of action.
7.6 Trust has a moderate positive relationship with job performance and a strong positive rela-
tionship with organizational commitment.
7.7 Organizations can become more trustworthy by emphasizing corporate social responsibility,
a perspective that acknowledges that the responsibilities of a business encompass the eco-
nomic, legal, ethical, and citizenship expectations of society.
TA K E AWAY S
Final PDF to printer
221C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 221 10/20/17 02:24 PM
7.1 Which would be more damaging in organizational life—being too trusting or not being trust-
ing enough? Why do you feel that way?
7.2 Consider the three dimensions of trustworthiness (ability, benevolence, and integrity).
Which of those dimensions would be most important when deciding whether to trust your
boss? What about when deciding whether to trust a friend? If your two answers differ, why
do they?
7.3 Putting yourself in the shoes of a manager, which of the four justice dimensions (distribu-
tive, procedural, interpersonal, informational) would you find most difficult to maximize?
Which would be the easiest to maximize?
7.4 Which component of ethical decision making do you believe best explains student cheating:
moral awareness, moral judgment, or moral intent? Why do you feel that way?
7.5 Assume you were applying for a job at a company known for its corporate social responsibil-
ity. How important would that be to you when deciding whether to accept a job offer?
D I S C U S S I O N Q U E S T I O N S
• Four-component model p. 210
• Moral awareness p. 210
• Moral intensity p. 211
• Moral attentiveness p. 211
• Moral judgment p. 212
• Cognitive moral development p. 213
• Moral principles p. 213
• Moral intent p. 215
• Moral identity p. 215
• Ability to focus p. 218
• Economic exchange p. 218
• Social exchange p. 218
• Corporate social responsibility p. 219
As is often the case with large companies, SeaWorld’s responses to its ethical crises have been
shaped, in part, by negotiations with government representatives. Before Manby was brought
in, the company had been investigating a concept called BlueWorld: 50-feet-deep orca tanks
with simulated currents that would allow whales to swim against moving water. The California
Coastal Commission had approved the BlueWorld plan, but under the following stipulation:
SeaWorld could no longer breed orcas. Once its 11 California orcas were no more, BlueWorld
would have no occupants for its tanks.
As the company moved on from BlueWorld, a former congressman (and former cochair
of the animal welfare caucus) helped connect Manby with Wayne Pacelle—the CEO of the
Humane Society. Once the two men got past the initial awkwardness of their exchanges, they
began communicating regularly. Eventually, Manby brought Pacelle to SeaWorld—his first ever
trip to the park. There Pacelle was impressed by the rescue work that SeaWorld did. “People
who work there love animals; appreciation of animals is a big part of their enterprise,” he
noted. “If you sit down, look at the other person, and see the complexity; you find you have
more common ground than you might have imagined when lobbing cannonballs.” Indeed,
Manby and Pacelle announced an initiative to fight shark finning—a practice that kills
75 million sharks a year.
Other negotiations involved John Reilly—the former president of SeaWorld San Diego and
now the company’s COO—and Richard Bloom—a California assemblyman. Bloom was in the
process of authoring a bill that would have outlawed captivity, which would have dealt a fatal
C A S E : S E AW O R L D
Final PDF to printer
222 C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 222 10/20/17 02:24 PM
E X E R C I S E : U N E T H I C A L B E H AV I O R
The purpose of this exercise is to explore how authorities can prevent unethical behaviors on the
part of their employees. This exercise uses groups, so your instructor will either assign you to a
group or ask you to create your own group. The exercise has the following steps:
7.1 Read the following scenario:
Alex Grant recently graduated from college and is excited to be starting his first job as a
store manager for The Grocery Cart, a large supermarket chain. The company has a very
good management training program, and it is one of the fastest growing chains in the nation.
If Alex does well managing his first store, there are a number of promising advancement
opportunities in the company. After completing the store management training program,
Alex met with Regina Hill, his area supervisor. She informed Alex that he would be taking
charge of a medium-volume store ($250,000 in sales/week) in an upper-class neighborhood.
This store had been operating without a store manager for the past six months. The store
had also not made a profit in any of the monthly financial reports for the last year.
Hill also shared the following information with Alex: Because the store has been without
a store manager for the last six months, the assistant manager (Drew Smith) has been in
charge. Drew is known for being highly competent and a solid performer. However, there
have been complaints that he is frequently rude to employees and insults and ridicules
them whenever they make mistakes. Turnover among sales clerks and cashiers at this store
has been somewhat higher than in other stores in the area. The average pay of clerks and
cashiers is $7.25/hour. The last two semiannual inventories at this store showed significant
losses. There has been a large amount of theft from the store stockroom (an area where only
employees are allowed). Given that the store has generally done well in sales (compared with
others in the area) and that most expenses seem well under control, Hill believes that the
profitability problem for this store is primarily due to theft. Therefore, she suggested that
Alex’s plans for the store should focus on this priority over any others.
blow to SeaWorld. Reilly, Manby, and Bloom worked out a compromise, resulting in the Orca
Protection Act. Not only would orca breeding be banned, but all theatrical shows using orcas
would be phased out. They would be replaced by so-called “encounters” with orcas in more
natural-looking environments. Of course, no one knows what the future may bring, in terms of
either activist or government pressure. After all, SeaWorld will continue to do theatrical dolphin
and sea lion shows and continues to keep animals in captivity. When a company “moves the
line” in an area of its business that is ethically murky, it can be difficult to decide where that line
should be repositioned.
7.1 In terms of the four-component model, what effect did Blackfish seem to have on the public,
as it altered its views of SeaWorld’s theatrical orca shows?
7.2 If you consider the various moral principles described in Table 7-5, is there support for end-
ing theatrical orca shows but not ending theatrical dolphin or sea lion shows?
7.3 Activist groups like PETA exist, in part, to force companies to become more ethical in their
practices. Looking back across decades, has that seemed to happen? What role does (or
should) government play in such evolutions?
Source: E. Fry, “Swimming Upstream: Can a Bible-Studying, Love-Peddling Showman Save SeaWorld. . .from Itself?”
Fortune, September 15, 2016.
Final PDF to printer
223C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 223 10/20/17 02:24 PM
7.1 Rindova, V.P.; I.O. Wil-
liamson; A.P. Petkova;
and J.M. Sever. “Being
Good or Being Known:
An Empirical Examina-
tion of the Dimensions,
Antecedents, and
Consequences of
Organizational Reputa-
tion.” Academy of
Management Journal 48
(2005), pp. 1033–49.
7.2 Frauenheim, E. “Does
Reputation Matter?”
Workforce Management,
November 20, 2006,
pp. 22–26.
7.3 Ibid.
7.4 Mayer, R.C.; J.H. Davis;
and F.D. Schoorman.
“An Integrative Model
of Organizational
Trust.” Academy of
Management Review
20 (1995), pp. 709–34;
and Rousseau, D.M.;
S.B. Sitkin;
R.S. Burt; and C.
Camerer. “Not So
Different After All:
A Cross-Discipline
View of Trust.” Acad-
emy of Management
Review 23 (1998),
pp. 393–404.
E N D N OT E S
7.2 As a manager, what steps should Alex take to reduce employee theft? Come up with a list
of three ideas. Elect a group member to write the group’s three ideas on the board or on a
transparency.
7.3 Now read the following scenario:
When Alex arrived for his first day of work in his new store, he saw that Drew was in the
process of terminating an employee (Rudy Johnson) who had been caught stealing. Alex
immediately went to the break room of the store where the termination interview was being
conducted to learn more about the situation. Drew informed Alex that Rudy had been a
grocery clerk for the past six weeks and that he had apparently figured out how to tell if the
alarms to the stockroom doors were off. Rudy would then open the back stockroom doors
and stack cases of beer outside the store to pick up after his shift. After Drew caught Rudy
doing this, Drew had a conversation with one of his friends who works as a restaurant man-
ager down the street. Drew’s friend noted that he had hired Rudy a few months ago and that
he’d been caught stealing there too.
Turning to Rudy, Drew asked, “So, Rudy, what do you have to say for yourself?” Rudy
quickly replied: “Look here, [expletive], you don’t pay me enough to work here and put up
with this garbage. In fact, you’re always riding everyone like they’re your personal servant or
something. So I was trying to get some beer. I’ve seen you let stockers take home damaged
merchandise a dozen times. So just because they cut open a box of cookies, which we all
know they do on purpose, they get to take stuff home for free. For that matter, we’ve all seen
you do the same thing! I’ve never seen you make a big deal about this stuff before. Why can’t
I get a few cases of beer? What’s the big deal?”
7.4 Do these events give you any additional insights into how to decrease employee theft in this
store? If so, elect a group member to write an additional one or two reasons in your spot on
the board or on your transparency.
7.5 Class discussion (whether in groups or as a class) should center on whether the theft that’s
occurring at The Grocery Cart reveals a problem of moral awareness, moral judgment, or
moral intent. In addition, does the theft point to a problem with “bad apples,” a “bad barrel,”
or both?
Source: Adapted from E.C. Tomlinson, “Teaching the Interactionist Model of Ethics,” Journal of Management
Education 33 (2009), pp. 142–65.
Final PDF to printer
224 C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 224 10/20/17 02:24 PM
7.5 Kiley, D., and B. Helm.
“The Great Trust Offen-
sive.” BusinessWeek,
September 29, 2008,
pp. 38–41.
7.6 Greenberg, J. “A Taxon-
omy of Organizational
Justice Theories.” Acad-
emy of Management
Review 12 (1987),
pp. 9–22.
7.7 Lind, E.A. “Fairness
Heuristic Theory:
Justice Judgments as
Pivotal Cognitions in
Organizational Rela-
tions.” In Advances in
Organizational Justice,
ed. J. Greenberg and R.
Cropanzano. Stanford,
CA: Stanford Univer-
sity Press, 2001, pp.
56–88; Van den Bos,
K. “Fairness Heuristic
Theory: Assessing the
Information to Which
People Are Reacting
Has a Pivotal Role
in Understanding
Organizational Justice.”
In Theoretical and
Cultural Perspectives
on Organizational
Justice, ed. S. Gilliland,
D. Steiner, and D.
Skarlicki. Greenwich,
CT: Information Age,
2001, pp. 63–84; and
Van den Bos, K.; E.A.
Lind; and H.A.M.
Wilke. “The Psychology
of Procedural and Dis-
tributive Justice Viewed
from the Perspective
of Fairness Heuristic
Theory.” In Justice in
the Workplace, Vol. 2,
ed. R. Cropanzano.
Mahwah, NJ: Erlbaum,
2001, pp. 49–66.
7.8 Treviño, L.K.; G.R.
Weaver; and S.J.
Reynolds. “Behavioral
Ethics in Organiza-
tions: A Review.”
Journal of Management
32 (2006), pp. 951–90.
7.9 McAllister, D.J. “Affect-
and Cognition-Based
Trust as Foundations
for Interpersonal
Cooperation in Orga-
nizations.” Academy of
Management Journal 38
(1995), pp. 24–59.
7.10 Ibid.
7.11 Mayer et al., “An Inte-
grative Model”; Rotter,
J.B. “A New Scale for
the Measurement of
Interpersonal Trust.”
Journal of Personality
35 (1967), pp. 651–65;
Rotter, J.B. “General-
ized Expectancies for
Interpersonal Trust.”
American Psychologist
26 (1971), pp. 443–52;
and Rotter, J.B.
“Interpersonal Trust,
Trustworthiness, and
Gullibility.” American
Psychologist 35 (1980),
pp. 1–7.
7.12 Rosenberg, M. “Mis-
anthropy and Political
Ideology.” American
Sociological Review 21
(1956), pp. 690–95;
and Wrightsman Jr.,
L.S. “Measurement of
Philosophies of Human
Nature.” Psychological
Reports 14 (1964), pp.
743–51.
7.13 Mayer et al., “An Inte-
grative Model.”
7.14 Jones, W.H.; L.L.
Couch; and S. Scott.
“Trust and Betrayal:
The Psychology of Get-
ting Along and Getting
Ahead.” In Handbook
of Personality Psychol-
ogy, ed. R. Hogan, J.S.
Johnson, and S.R.
Briggs. San Diego, CA:
Academic Press, 1997,
pp. 465–82.
7.15 Source: Stack, L.C.
“Trust.” In Dimensional-
ity of Personality, ed. H.
London and J.E. Exner
Jr. New York: Wiley,
1978, pp. 561–99.
7.16 Webb, W.M., and P.
Worchel. “Trust and
Distrust.” In Psychology
of Intergroup Relations,
ed. S. Worchel and
W.G. Austin. Chicago:
Nelson-Hall, 1986, pp.
213–28; and Erickson,
E.H. Childhood and
Society, 2nd ed. New
York: Norton, 1963.
7.17 Stack, “Trust.”
7.18 Mayer et al., “An Inte-
grative Model.”
7.19 McAllister, “Affect- and
Cognition-Based Trust
as Foundations for
Interpersonal Coopera-
tion in Organizations”;
and Lewicki, R.J., and
B.B. Bunker. “Develop-
ing and Maintaining
Trust in Work Rela-
tionships.” In Trust in
Organizations: Frontiers
of Theory and Research,
ed. R.M. Kramer and
T.R. Tyler. Thousand
Oaks, CA: Sage, 1996,
pp. 114–39.
7.20 Mayer et al., “An Inte-
grative Model.”
7.21 Ibid.; and Gabarro,
J.J. “The Development
of Trust, Influence,
and Expectations.” In
Interpersonal Behavior:
Final PDF to printer
225C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 225 10/20/17 02:24 PM
Communication and
Understanding in
Relationships, ed. G.
Athos and J.J. Gabarro.
Englewood Cliffs, NJ:
Prentice Hall, 1978, pp.
290–303.
7.22 Mayer et al., “An Inte-
grative Model.”
7.23 Ibid.
7.24 Source: Marquez, J.
“Kindness Pays . . . Or
Does It?” Workforce
Management, June 25,
2007, pp. 41–49.
7.25 Source: Marquez, J.
“Kindness Pays . . . Or
Does It?” Workforce
Management, June 25,
2007, pp. 41–49.
7.26 Mayer et al., “An Inte-
grative Model.”
7.27 Wright, T.A., and J.
Goodstein. “Character
Is Not ‘Dead’ in Man-
agement Research: A
Review of Individual
Character and
Organizational-Level
Virtue.” Journal of Man-
agement 33 (2007),
pp. 928–58; and
Gabarro, “The
Development of
Trust, Influence, and
Expectations.”
7.28 Mayer et al., “An Integra-
tive Model”; Simons, T.
“Behavioral Integrity:
The Perceived Align-
ment between Managers’
Words and Deeds as a
Research Focus.” Organi-
zation Science 13 (2002),
pp. 18–35; and Dineen,
B.R.; R.J. Lewicki;
and E.C. Tomlinson.
“Supervisory Guidance
and Behavioral Integrity:
Relationships with
Employee Citizenship
and Deviant Behavior.”
Journal of Applied
Psychology 91 (2006),
pp. 622–35.
7.29 Dineen et al., “Super-
visory Guidance”;
and Bates, S. “Poll:
Employees Skeptical
about Management
Actions.” HR Magazine,
June 2002, p. 12.
7.30 Lencioni, P. “The
Power of Saying ‘We
Blew It.’” Bloomberg
Businessweek, February
22, 2010, p. 84.
7.31 Penenberg, A.L.
“Doctor Love.” Fast
Company, July/August
2010, pp. 78–83, 113.
7.32 Naquin, C. E.; T.R.
Kurtzerg; and L.Y. Bel-
kin. “The Finer Points
of Lying Online: E-mail
Versus Pen and Paper.”
Journal of Applied Psy-
chology 95 (2010),
pp. 387–94.
7.33 Stead, D. “. . . And
I Invented Velcro.”
BusinessWeek, August
4, 2008, p. 15.
7.34 Penenberg, “Doctor
Love.”
7.35 McAllister, “Affect- and
Cognition-Based Trust”;
Lewicki and Bunker,
“Developing and
Maintaining Trust”;
and Lewis, J.D., and
A. Weigert. “Trust as a
Social Reality.” Social
Forces 63 (1985),
pp. 967–85.
7.36 McAllister, “Affect- and
Cognition-Based Trust.”
7.37 Lind, “Fairness Heuris-
tic Theory: Assessing”;
Van den Bos, “Fairness
Heuristic Theory: Jus-
tice”; and Van den Bos
et al., “The Psychology
of Procedural and Dis-
tributive Justice.”
7.38 Adams, J.S. “Inequity
in Social Exchange.” In
Advances in Experimen-
tal Social Psychology,
Vol. 2, ed. L. Berkowitz.
New York: Academic
Press, 1965, pp. 267–99;
and Leventhal, G.S.
“The Distribution of
Rewards and Resources
in Groups and Organi-
zations.” In Advances
in Experimental Social
Psychology, Vol. 9, ed.
L. Berkowitz and W.
Walster. New York:
Academic Press, 1976,
pp. 91–131.
7.39 Leventhal, “The Distri-
bution of Rewards.”
7.40 Ibid.
7.41 Leventhal, G.S. “What
Should Be Done with
Equity Theory? New
Approaches to the
Study of Fairness in
Social Relationships.”
In Social Exchange:
Advances in Theory and
Research, ed. K. Ger-
gen, M. Greenberg, and
R. Willis. New York:
Plenum Press, 1980,
pp. 27–55; and Thibaut,
J., and L. Walker.
Procedural Justice: A
Psychological Analysis.
Hillsdale, NJ: Erlbaum,
1975.
7.42 Folger, R. “Distributive
and Procedural Justice:
Combined Impact of
‘Voice’ and Improve-
ment on Experienced
Inequity.” Journal of
Final PDF to printer
226 C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 226 10/20/17 02:24 PM
Personality and Social
Psychology 35 (1977),
pp. 108–19.
7.43 Colquitt, J.A.; D.E.
Conlon; M.J. Wesson;
C.O.L.H. Porter; and
K.Y. Ng. “Justice at the
Millennium: A Meta-
Analytic Review of
25 Years of Orga-
nizational Justice
Research.” Journal of
Applied Psychology 86
(2001), pp. 425–45.
7.44 Tyler, T.R.; K.A. Rasin-
ski; and N. Spodick.
“Influence of Voice
on Satisfaction with
Leaders: Exploring the
Meaning of Process
Control.” Journal of
Personality and Social
Psychology 48 (1985),
pp. 72–81; Earley,
P.C., and E.A. Lind.
“Procedural Justice and
Participation in Task
Selection: The Role of
Control in Mediating
Justice Judgments.”
Journal of Personality
and Social Psychology
52 (1987),
pp. 1148–60; Lind,
E.A.; R. Kanfer; and
P.C. Earley. “Voice,
Control, and Procedural
Justice: Instrumental
and Noninstrumental
Concerns in Fairness
Judgments.” Journal of
Personality and Social
Psychology 59 (1990),
pp. 952–59; and Kors-
gaard, M.A., and L.
Roberson. “Procedural
Justice in Performance
Evaluation: The Role of
Instrumental and Non-
Instrumental Voice in
Performance Appraisal
Discussions.” Journal of
Management 21 (1995),
pp. 657–69.
7.45 Leventhal, “What
Should Be Done with
Equity Theory?”
7.46 Kolhatkar, S. “Emascu-
lation Nation.” Bloom-
berg Businessweek,
September 17–23, 2012,
pp. 102–103.
7.47 Coy, P., and E.
Dwoskin. “Short-
changed.” Bloomberg
Businessweek, June 25–
July 1, 2012, pp. 6–7.
7.48 Source: Morris, “How
Corporate America
Is Betraying Women.”
Fortune, January 10,
v2005, pp. 64–74
7.49 Hansen, F. “Race and
Gender Still Matter.”
Workforce Management,
September 11, 2006,
p. 12.
7.50 Source: Hansen, F.
“Merit-Pay Payoff?”
Workforce Management,
November 3, 2008,
pp. 33–39
7.51 Taylor, A., III “No Test
Dummies.” Fortune, June
11, 2007, pp. 49–52.
7.52 Leonard, D. “Who’s
Afraid of Steve Jobs?”
Bloomberg Business-
week, July 26–August 1,
2010, pp. 58–63.
7.53 Brockner, J., and B.M.
Wiesenfeld. “An Inte-
grative Framework for
Explaining Reactions to
Decisions: Interactive
Effects of Outcomes
and Procedures.” Psy-
chological Bulletin 120
(1996), pp. 189–208.
7.54 Ibid.
7.55 Colquitt et al., “Justice
at the Millennium”;
and Cohen-Charash,
Y., and P.E. Spector.
“The Role of Justice
in Organizations:
A Meta-Analysis.”
Organizational Behavior
and Human Decision
Processes 86 (2001),
pp. 278–321.
7.56 Bies, R.J., and J.F.
Moag. “Interactional
Justice: Communi-
cation Criteria of
Fairness.” In Research
on Negotiations in
Organizations, Vol. 1,
ed. R.J. Lewicki, B.H.
Sheppard, and M.H.
Bazerman. Green-
wich, CT: JAI Press,
1986, pp. 43–55; and
Greenberg, J. “The
Social Side of Fairness:
Interpersonal and Infor-
mational Classes of
Organizational Justice.”
In Justice in the Work-
place: Approaching Fair-
ness in Human Resource
Management, ed. R.
Cropanzano. Hillsdale,
NJ: Erlbaum, 1993,
pp. 79–103.
7.57 Bies, R.J. “Interactional
(In)justice: The Sacred
and the Profane.” In
Advances in Organi-
zational Justice, ed.
J. Greenberg and R.
Cropanzano. Stanford,
CA: Stanford Univer-
sity Press, 2001,
pp. 85–108.
7.58 Tepper, B.J.
“Consequences of
Abusive Supervision.”
Academy of Manage-
ment Journal 43
(2000), pp. 178–90.
Final PDF to printer
227C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 227 10/20/17 02:24 PM
7.59 Schat, A.C.H.; M.R.
Frone; and E.K. Kel-
loway. “Prevalence of
Workplace Aggression
in the U.S. Workforce:
Findings from a
National Study.” In
Handbook of Workplace
Violence, ed. E.K. Kel-
loway, J. Barling, and
J.J. Hurrell. Thousand
Oaks, CA: Sage, 2006,
pp. 47–89.
7.60 Tepper, B.J.; M.K.
Duffy; C.A. Henle; and
L.S. Lambert. “Proce-
dural Injustice, Victim
Precipitation, and
Abusive Supervision.”
Personnel Psychology 28
(2006), pp. 101–23.
7.61 Tepper, B.J. “Abusive
Supervision in Work
Organizations:
Review, Synthesis, and
Research Agenda.”
Journal of Management
33 (2007), pp. 261–89.
7.62 Mitchell, M.S., and
M.L. Ambrose. “Abu-
sive Supervision and
Workplace Deviance
and the Moderating
Effects of Negative
Reciprocity Beliefs.”
Journal of Applied Psy-
chology 92 (2007), pp.
1159–68; Tepper, B.J.;
C.A. Henle; L.S. Lam-
bert; R.A. Giacalone;
and M.K. Duffy. “Abu-
sive Supervision and
Subordinates’ Orga-
nizational Deviance.”
Journal of Applied Psy-
chology 93 (2008), pp.
721–32; and Tepper,
B.J.; J.C. Carr; D.M.
Breaux; S. Geider;
C. Hu; and W. Hua.
“Abusive Supervision,
Intentions to Quit, and
Employees’ Workplace
Deviance: A Power/
Dependence Analy-
sis.” Organizational
Behavior and Human
Decision
Processes 109 (2009),
pp. 156–67.
7.63 Miner, A.G.; T.M.
Glomb; and C. Hulin.
“Experience Sampling
Mode and Its Corre-
lates at Work.” Journal
of Occupational and
Organizational Psychol-
ogy 78 (2005), pp.
171–93.
7.64 Gilliland, S.W.; L.
Benson; and D.H.
Schepers. “A Rejection
Threshold in Justice
Evaluations: Effects
on Judgment and
Decision-Making.”
Organizational Behavior
and Human Decision
Processes 76 (1998), pp.
113–31.
7.65 Hauser, S.G. “The
Degeneration.” Work-
force Management,
January 2011, pp.
16–21.
7.66 Source: Susan G.
Hauser, “The Degen-
eration of Decorum,”
Workforce Management
(January 16, 2011), pp.
16–18, 20–21.
7.67 Bies and Moag, “Inter-
actional Justice”; and
Greenberg, “The Social
Side of Fairness.”
7.68 Folger, R., and D.P.
Skarlicki. “Fairness as
a Dependent Variable:
Why Tough Times Can
Lead to Bad Manage-
ment.” In Justice in the
Workplace: From Theory
to Practice, ed. R.
Cropanzano. Mahwah,
NJ: Erlbaum, 2001, pp.
97–118.
7.69 Marquez, J.; E. Frauen-
heim; and M. Schoeff
Jr. “Harsh Reality.”
Workforce Management,
June 22, 2009,
pp. 18–23.
7.70 Shaw, J.C.; R.E. Wild;
and J.A. Colquitt. “To
Justify or Excuse?: A
Meta-Analysis of the
Effects of Explana-
tions.” Journal of
Applied Psychology 88
(2003), pp. 444–58.
7.71 Orey, M. “Fear of
Firing.” BusinessWeek,
April 23, 2007, pp.
52–62.
7.72 Greenberg, J.
“Employee Theft as a
Reaction to Underpay-
ment Inequity: The
Hidden Cost of Payc-
uts.” Journal of Applied
Psychology 75 (1990),
pp. 561–68.
7.73 Colquitt et al., “Justice
at the Millennium”; and
Cohen-Charash and
Spector, “The Role of
Justice.”
7.74 Treviño et al., “Behav-
ioral Ethics”; and
Tenbrunsel, A.E., and
K. Smith-Crowe. “Ethi-
cal Decision Making:
Where We’ve Been and
Where We’re Going.”
Academy of Manage-
ment Annals 2 (2008),
pp. 545–607.
7.75 Donaldson, T., and
T.W. Dunfee. “Toward
a Unified Conception
Final PDF to printer
228 C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 228 10/20/17 02:24 PM
of Business Ethics: Inte-
grative Social Contracts
Theory.” Academy of
Management Review 19
(1994), pp. 252–84.
7.76 Treviño et al., “Behav-
ioral Ethics.”
7.77 Kaptein, M. “Developing
a Measure of Unethical
Behavior in the Work-
place: A Stakeholder
Perspective.” Journal of
Management 34 (2008),
pp. 978–1008.
7.78 Covey, S.M.R. The
Speed of Trust: The One
Thing That Changes
Everything. New York:
The Free Press, 2006.
7.79 Treviño et al., “Behav-
ioral Ethics.”
7.80 Near, J.P., and M.P.
Miceli. “Organizational
Dissidence: The Case
of Whistle-Blowing.”
Journal of Business Eth-
ics 4 (1985), pp. 1–16.
7.81 Rehg, M.T.; M.P.
Miceli; J.P. Near; and
J.R. Van Scotter. “Ante-
cedents and Outcomes
of Retaliation Against
Whistleblowers: Gen-
der Differences and
Power Relationships.”
Organization Science 19
(2008), pp. 221–40.
7.82 Miceli, M.P.; J.P. Near;
and T.M. Dworkin. “A
Word to the Wise: How
Managers and Policy-
Makers Can Encourage
Employees to Report
Wrongdoing.” Journal
of Business Ethics 86
(2009), pp. 379–96.
7.83 Rest, J.R. Moral Devel-
opment: Advances in
Research and Theory.
New York: Praeger,
2006.
7.84 Treviño, L.K. “Ethi-
cal Decision Making
in Organizations:
A Person-Situation
Interactionist Model.”
Academy of Manage-
ment Review 11 (1996),
pp. 601–17; and Kish-
Gephart, J.J.; D.A.
Harrison; and L.K.
Treviño. “Bad Apples,
Bad Cases, and Bad
Barrels: Meta-Analytic
Evidence about Sources
of Unethical Decisions
at Work.” Journal of
Applied Psychology 95
(2010), pp. 1–31.
7.85 Tomlinson, E.C.
“Teaching the Inter-
actionist Model of
Ethics.” Journal of
Management Educa-
tion 33 (2009), pp.
142–65; and Treviño,
L.K., and M.E. Brown.
“Managing to be
Ethical: Debunking
Five Business Ethics
Myths.” Academy of
Management Executive
18 (2004), pp. 69–83.
7.86 Rest, Moral
Development.
7.87 Butterfield, K.D.; L.K.
Treviño; and G.R.
Weaver. “Moral Aware-
ness in Business Orga-
nizations: Influence
of Issue-Related and
Social Context Factors.”
Human Relations 53
(2000), pp. 981–1017.
7.88 Berfield, S. “Steal This
Look.” Bloomberg
Businessweek, January
24–30, 2011, pp. 90–96.
7.89 Source: Berfield, S.
“Steal This Look.”
Bloomberg Business-
week, January 24–30,
2011, pp. 90–96
7.90 Jones, T.M. “Ethical
Decision Making by
Individuals in Organiza-
tions: An Issue-
Contingent Model.”
Academy of Manage-
ment Review 16 (1991),
pp. 366–95.
7.91 Singhapakdi, A.; S.J.
Vitell; and K.L. Kraft.
“Moral Intensity and
Ethical Decision-
Making of Marketing
Professionals.” Journal
of Business Research 36
(1996), pp. 245–55.
7.92 Jones, “Ethical Deci-
sion Making by Individ-
uals in Organizations.”
7.93 Reynolds, S.J. “Moral
Attentiveness: Who
Pays Attention to the
Moral Aspects of Life?”
Journal of Applied Psy-
chology 93 (2008),
pp. 1027–41.
7.94 Porter, J. “Using Ex-
Cons to Scare MBAs
Straight.” BusinessWeek,
May 5, 2008, p. 58.
7.95 Source: Porter, J. “Using
Ex-Cons to scare MBAs
Straight.” Businessweek,
May 5, 2008, p. 58.
7.96 Rest, Moral
Development.
7.97 Kohlberg, L. “Stage and
Sequence: The Cogni-
tive Developmental
Approach to Socializa-
tion.” In Handbook of
Socialization Theory, ed.
D.A. Goslin. Chicago:
Rand McNally, 1969,
pp. 347–480; and Kohl-
berg, L. “The Claim to
Moral Adequacy of a
Highest Stage of Moral
Judgment.” Journal of
Philosophy 70 (1973),
pp. 630–46.
Final PDF to printer
229C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 229 10/20/17 02:24 PM
7.98 Rest, J. Manual for
the Defining Issues
Test. Minneapolis,
MN: Center for the
Study of Ethical
Development, 1986;
and Loviscky, G.E.;
L.K. Treviño; and
R.R. Jacobs. “Assess-
ing Managers’ Ethical
Decision-Making: An
Objective Measure
of Managerial Moral
Judgment.” Journal
of Business Ethics 73
(2007), pp. 263–85.
7.99 Kohlberg, “Stage
and Sequence”; and
Kohlberg, “The Claim
to Moral Adequacy.”
7.100 Ibid.
7.101 Treviño et al., “Behav-
ioral Ethics”
7.102 Kohlberg, “Stage
and Sequence”; and
Kohlberg, “The Claim
to Moral Adequacy.”
7.103 Treviño et al., “Behav-
ioral Ethics;” and
Rest, J.; D. Narvaez;
M.J. Bebeau; and S.J.
Thoma. Postconven-
tional Moral Thinking:
A Neo-Kohlbergian
Approach. Mahwah,
NJ: Erlbaum, 1999.
7.104 Crane and Matten,
Business Ethics. New
York: Oxford Univer-
sity Press, 2007.
7.105 Ibid.
7.106 Rest, Moral
Development.
7.107 Kaptein, M. “Devel-
oping and Testing
a Measure for the
Ethical Culture of
Organizations: The
Corporate Ethics
Virtues Model.”
Journal of Organiza-
tional Behavior 29
(2008), pp. 923–47;
Schminke, M.; M.L.
Ambrose; and D.O.
Neubaum. “The
Effect of Leader
Moral Development
on Ethical Climate
and Employee Atti-
tudes.” Organizational
Behavior and Human
Decision Processes 97
(2005), pp. 135–51;
and Treviño, “Ethical
Decision Making in
Organizations”
7.108 Schweitzer, M.E.;
L. Ordòñez; and B.
Douma. “Goal Setting
as a Motivator of
Unethical Behavior.”
Academy of Manage-
ment Journal 47
(2004), pp. 422–32.
7.109 Aquino, K., and A.
Reed II. “The Self-
Importance of Moral
Identity.” Journal of
Personality and Social
Psychology 83 (2002),
pp. 1423–40.
7.110 Ibid.
7.111 Reynolds, S.J., and
T.L. Ceranic. “The
Effects of Moral
Judgment and Moral
Identity on Moral
Behavior: An Empiri-
cal Examination of
the Moral Individual.”
Journal of Applied
Psychology 92 (2007),
pp. 1610–24.
7.112 Schminke, M.; M.L.
Ambrose; and T.W.
Noel. “The Effects of
Ethical Frameworks
on Perceptions
of Organizational
Justice.” Academy of
Management Journal
40 (1997), pp. 1190–
1207; and Wendorf,
C.A.; S. Alexander;
and I.J. Firestone.
“Social Justice and
Moral Reasoning: An
Empirical Integration
of Two Paradigms
in Psychological
Research.” Social
Justice Research 15
(2002), pp. 19–39.
7.113 Mayer, R.C., and
M.B. Gavin. “Trust
in Management and
Performance: Who
Minds the Shop While
the Employees Watch
the Boss?” Academy
of Management Jour-
nal 48 (2005),
pp. 874–88.
7.114 Blau, P. Exchange and
Power in Social Life.
New York: Wiley,
1964; and Shore,
L.M.; L.E. Tetrick; P.
Lynch; and K. Barks-
dale. “Social and
Economic Exchange:
Construct Develop-
ment and Validation.”
Journal of Applied
Social Psychology 36
(2006), pp. 837–67.
7.115 Ibid.
7.116 Dirks, K.T., and D.L.
Ferrin. “Trust in
Leadership: Meta-
Analytic Findings
and Implications
for Research and
Practice.” Journal of
Applied Psychology 87
(2002), pp. 611–28.
7.117 Ibid.
7.118 Carroll, A.B. “A Three-
Dimensional Model of
Corporate Social Per-
formance.” Academy of
Management Review 4
Final PDF to printer
230 C H A P T E R 7 Trust, Justice, and Ethics
coL27660_ch07_194-231.indd 230 10/20/17 02:24 PM
(1979), pp. 497–505;
Carroll, A.B. “The
Pyramid of Corporate
Social Responsibility:
Toward the Moral
Management of Orga-
nizational Stakehold-
ers.” Business Horizons
34 (1991), pp. 39–48;
Carroll, A.B. “The
Four Faces of Cor-
porate Citizenship.”
Business and Society
Review 100 (1998), pp.
1–7; and Carroll, A.B.
“Corporate Social
Responsibility—-
Evolution of a
Definitional Con-
struct.” Business and
Society 38 (1999),
pp. 268–95.
7.119 Carroll, “The
Pyramid.”
7.120 Weber, J. “The New
Ethics Enforcers.” Busi-
nessWeek, February 13,
2006, pp. 76–77.
7.121 Carroll, “The
Pyramid.”
7.122 Schoeff, M., Jr. “J. M.
Smuckers Co.”
Workforce Manage-
ment, March 13,
2006, p. 19.
7.123 Carroll, “The
Pyramid.”
7.124 Grow, B.; S. Hamm;
and L. Lee. “The
Debate Over Doing
Good.” BusinessWeek,
August 15, 2005,
pp. 76–78.
7.125 Holmes, S. “Nike
Goes for the Green.”
BusinessWeek, Sep-
tember 25, 2006, pp.
106–108.
7.126 Gunther, M. “The
Green Machine.” For-
tune, August 7, 2006,
pp. 42–57.
7.127 Grow et al., “The
Debate Over Doing
Good.”
Final PDF to printer
coL27660_ch07_194-231.indd 231 10/20/17 02:24 PM
Final PDF to printer
coL27660_ch08_232-262.indd 232 10/11/17 08:45 AM
8
LEARNING GOALS
8.1 What is learning, and how does it affect decision making?
8.2 What types of knowledge can employees gain as they learn and build expertise?
8.3 What are the methods by which employees learn in organizations?
8.4 What two methods can employees use to make decisions?
8.5 What decision-making problems can prevent employees from translating their learning into accurate
decisions?
8.6 How does learning affect job performance and organizational commitment?
8.7 What steps can organizations take to foster learning?
After reading this chapter, you should be able to answer the following questions:
Learning and Decision
Making
INDIVIDUAL
OUTCOMES
INDIVIDUAL
MECHANISMS
INDIVIDUAL
CHARACTERISTICS
ORGANIZATIONAL
MECHANISMS
Organizational
Culture
Organizational
Structure
Teams:
Processes &
Communication
Motivation
Trust, Justice,
& Ethics
Teams:
Characteristics &
Diversity
Learning &
Decision Making
Ability
Personality &
Cultural Values
Stress
Leadership:
Power &
Negotiation
Job
Satisfaction
Leadership:
Styles &
Behaviors
Organizational
Commitment
Job
Performance
GROUP
MECHANISMS
Final PDF to printer
coL27660_ch08_232-262.indd 233 10/11/17 08:45 AM
B
ridgewater Associates LP, based in Westport, CT,
(about an hour from New York City) is the world’s larg-
est hedge fund firm, managing $160 billion in invest-
ments. It is also a company whose 1,500 employees are
doggedly focused on identifying mistakes and learning from
them. Bridgewater records almost every conversation and
every meeting between employees and analyzes them for
mistakes and successes. The company requires employ-
ees to work in an environment of “radical truth” and “radi-
cal transparency.” What does that mean? Well, for one thing,
it means that employees are expected to be as open and
honest as possible with everyone and everything they come
in contact with at work. This might mean speaking up when
they feel a meeting is a waste of time. It also might mean
telling a person in front of a room full of people that they
are unprepared and their opinion didn’t add value. In fact,
the second worst thing you can do as an employee (dishon-
esty is first) is to say something about a person behind their
back—the expectation is that you will say it to their face.
Much of this culture of transparency and truth comes
from Bridgewater founder Ray Dalio (age 67) who moves
between jobs (or at least job titles) such as CIO, CEO, and
Mentor on a regular basis as he attempts to find a succes-
sor. The unquestioned leader regardless of his job title,
Dalio describes the firm as an “intellectual Navy Seals” and
notes that the firm is ruled by a manifesto he created of
210 principles. Over 100 pages long, new employees are
expected to have read these principles and act accordingly
when they arrive to work. (Open to the public, a list of these
principles can be found at www.principles.com.)
At the core of these principles is a desire for employees
to learn and be independent thinkers and decision makers.
The goal is that decisions inside the firm are made with full
information and diversity of thought—ideas rule, not emo-
tions. This also means that the expectation is that conflict
will be a daily part of life. It’s not an environment that fits
everyone—20 percent of new hires leave within their first
year. Sometimes the honesty is too much and employ-
ees can be found crying in the bathroom. However, many
employees thrive in the environment. Dalio states that as
a firm, “our greatest power is that we know that we don’t
know and we are open to being wrong and learning.”
BRIDGEWATER ASSOCIATES
©Bloomberg/Getty Images
Final PDF to printer
234 C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 234 10/11/17 08:45 AM
8.2
What types of knowledge
can employees gain as they
learn and build expertise?
8.1
What is learning, and how
does it affect decision
making?
L E A R N I N G A N D D E C I S I O N M A K I N G
Bridgewater Associates spends an enormous amount of time and effort to create an environment
where employees learn from their mistakes and ideally make decisions more effectively through
open and honest communication and conflict. Learning reflects relatively permanent changes
in an employee’s knowledge or skill that result from experience.1 The more employees learn, the
more they bring to the table when they come to work. Why is learning so important? Because it
has a significant impact on decision making, which refers to the process of generating and choos-
ing from a set of alternatives to solve a problem. The more knowledge and skills employees pos-
sess, the more likely they are to make accurate and sound decisions. The risk, at Bridgewater and
other organizations, is that less experienced employees will lack the knowledge base needed to
make the right decisions when performing their jobs or stepping into new roles.
One reason inexperience can be so problematic is that learning is not necessarily easy. Have
you ever watched “experts” perform their jobs? How is it that someone becomes an expert? It takes
a significant amount of time to become proficient at most complex jobs. It takes most employees
anywhere from three months to a year to perform their job at a satisfactory level.2 To develop high
levels of expertise takes significantly longer. This difficulty makes it even more important for com-
panies to find a way to improve learning and decision making by their employees.
W H Y D O S O M E E M P LOY E E S L E A R N TO M A K E
D E C I S I O N S B E T T E R T H A N OT H E R S ?
Bill Buford, a journalist interested in becoming a chef, was hired by Mario Batali’s world-renowned
restaurant Babbo in New York. At some point early in his tenure in the kitchen, he realized he was
in over his head while he stood and watched other, more experienced cooks work at an unbeliev-
ably frantic pace. He knew right then that he had a decision to make:
I was at a go-forward-or-backward moment. If I went backward, I’d be saying, “Thanks for
the visit, very interesting, that’s sure not me.” But how to go forward? There was no place
for me. These people were at a higher level of labor. They didn’t think. Their skills were so
deeply inculcated they were available to them as instincts. I didn’t have skills of that kind
and couldn’t imagine how you’d learn them. I was aware of being poised on the verge of
something: a long, arduous, confidence-bashing, profoundly humiliating experience.3
In this situation, Buford realized that his coworkers had more expertise than he did. Expertise
refers to the knowledge and skills that distinguish experts from novices and less experienced peo-
ple.4 Research shows that the differences between experts and novices is almost always a function
of learning as opposed to the more popular view that intelligence or other innate differences make
the difference.5 Although learning cannot be directly seen or observed, we can tell when people
have learned by observing their behaviors. It’s those behaviors that can be used to tell experts
from novices, and it is changes in those behaviors that can be used to show that learners are gain-
ing knowledge. Although it’s sometimes easy for employees to mimic a behavior once or twice, or
get lucky with a few key decisions, true learning only occurs when changes in behavior become
relatively permanent and are repeated over time. Understanding why some employees prove better
at this than others requires understanding what exactly employees learn and how they do it. For
more discussion of the development of expertise, see our OB at the Bookstore feature.
T Y P E S O F K N OW L E D G E
Employees learn two basic types of knowledge, both of which have important implications for
organizations. Explicit knowledge is the kind of information you’re likely to think about when
you picture someone sitting down at a desk to learn. It’s information that’s relatively easily
Final PDF to printer
235C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 235 10/11/17 08:45 AM
OB AT THE BOOKSTORE
PEAK
by Anders Ericsson and Robert Pool (New York: Houghton Mifflin Harcourt, 2016)
The main thing that sets experts apart from the rest of us is that their years of practice have
changed the neural circuitry in their brains to produce highly specialized mental representations,
which in turn make possible the incredible memory, pattern recognition, problem solving, and
other sorts of advanced abilities needed to excel in their particular specialties.
With those words, Anders Ericsson and Robert Pool deliver the
main thrust of the book’s message: ignore the premise of “natural
ability” and realize that effort is the primary building block that
develops expertise. Did you ever want to become an expert at
something? Have you heard of the 10,000 hour rule? Made popu-
lar in Outliers, a book written by Malcolm Gladwell, the rule states
that one has to spend 10,000 hours doing something to become
an “expert” at it. The research that Gladwell cited was that of
Anders Ericsson who has spent his career studying people who
are exceptional at what they do—in other words, experts. Although
Ericsson argues that Gladwell misunderstood his research and that
the 10,000 hour rule is not really a “rule”—it does help highlight
something very clear—“people working to become experts requires
a tremendous amount of effort exerted over many years. It may not
require exactly 10,000 hours, but it will take a lot.”
In fact, it takes exerted effort at what Ericsson calls “deliberate
practice.” Naïve practice, as noted in the book, is essentially just
doing something repeatedly and expecting that the simple repetition will improve your perfor-
mance. Ericsson would argue that it won’t. The most practical benefit of the book is the detailed
explanation of deliberate practice, which involves well-defined and specific goals, focus, feedback,
and getting out of our comfort zone. Ideally, all of this happens under the tutelage of an expert
so that the practice will be well informed. Much of Ericsson’s research on expertise is oriented
around the development of tacit knowledge, or what he refers to as “mental representations.”
These mental representations are what allow experts to process their world more efficiently and
accurately than novices.
©Roberts Publishing Services
communicated and a large part of what companies teach during training sessions. Think about it
this way: If you can put the information or knowledge in a manual or write it down for someone
else, chances are good you’re talking about explicit knowledge. As you read this textbook, we’re
doing our best to communicate explicit knowledge to you that will be useful to you in your future
job. Although such information is necessary to perform well, it winds up being a relatively minor
portion of all that you need to know.
Tacit knowledge, in contrast, is what employees can typically learn only through experience.6
It’s not easily communicated but could very well be the most important aspect of what we learn
in organizations.7 In fact, it’s been argued that up to 90 percent of the knowledge contained in
organizations occurs in tacit form.8 Did you ever get to be so good at something that you had the
ability to do it but couldn’t really explain it to someone else? That’s a common way to explain
tacit knowledge. It’s been described as the “know-how,” “know-what,” and “know-who” acquired
solely through experience.9 Others have used terms such as intuition, skills, insight, beliefs, mental
Final PDF to printer
236 C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 236 10/11/17 08:45 AM
models, and practical intelligence.10 Table 8-1
lists the qualities that help explain the differ-
ences between explicit and tacit knowledge. Some
would say that explicit knowledge is what every-
one can find and use, but tacit knowledge is what
separates experts from common people.11
M E T H O D S O F L E A R N I N G
Tacit and explicit knowledge are extremely
important to employees and organizations. As
an employee, it’s hard to build a high level of
tacit knowledge without some level of explicit
knowledge to build from. From an organization’s
perspective, the tacit knowledge its employees
accumulate may be the single most important
strategic asset a company possesses.12 The ques-
tion then becomes: How do employees learn
these types of knowledge? The short answer is
that we learn through reinforcement (i.e., rewards
and punishment), observation, and experience.
REINFORCEMENT We’ve long known that man-
agers use various methods of reinforcement to induce desirable or reduce undesirable behaviors
by their employees. Originally known as operant conditioning, B.F. Skinner was the first to pio-
neer the notion that we learn by observing the link between our voluntary behavior and the con-
sequences that follow it. Research has continually demonstrated that people will exhibit specific
behaviors if they’re rewarded for doing so. Not surprisingly, we have a tendency to repeat behav-
iors that result in consequences that we like and to reduce behaviors that result in consequences
we don’t like. Figure 8-1 shows this operant conditioning process.
In the model in Figure 8-1, you can see that there are antecedents or events that precede or sig-
nal certain behaviors, which are then followed by consequences. Antecedents in organizations are
typically goals, rules, instructions, or other types of information that help show employees what
is expected of them. Although antecedents are useful for motivational reasons, it’s primarily the
consequences of actions that drive behavior. This entire process of reinforcement is a continuous
cycle, and the repetition of behaviors is strengthened to the degree that reinforcement continues
8.3
What are the methods by
which employees learn in
organizations?
Expertise is the accumula-
tion of superior knowledge
and skills in a field that
separates experts from
everyone else.
©Dynamic Graphics/JupiterImages
TABLE 8-1 Characteristics of Explicit and Tacit Knowledge
EXPLICIT KNOWLEDGE TACIT KNOWLEDGE
Easily transferred through written or verbal
communication
Very difficult, if not impossible, to articulate to
others
Readily available to most Highly personal in nature
Can be learned through books Based on experience
Always conscious and accessible
information
Sometimes holders don’t even recognize that
they possess it
General information Typically job- or situation-specific
Source: Adapted from R. McAdam, B. Mason, and J. McCrory, “Exploring the Dichotomies within the Tacit Knowledge
Literature: Towards a Process of Tacit Knowing in Organizations,” Journal of Knowledge Management 11 (2007), pp. 43–59.
Final PDF to printer
237C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 237 10/11/17 08:45 AM
FIGURE 8-1 Operant Conditioning Components
Behavior ConsequenceAntecedent
Manager sets
specific and
di�cult goal
Condition that
precedes behavior
Employee meets
assigned goal
Action performed
by employee
Employee receives
a bonus
Result that occurs
after behavior
to occur. There are four specific consequences typically used by organizations to modify employee
behavior, known as the contingencies of reinforcement.13 Figure 8-2 summarizes these contingen-
cies. It’s important to separate them according to what they’re designed to do—namely, increase
desired behaviors or decrease unwanted behaviors.
Two contingencies of reinforcement are used to increase desired behaviors. Positive reinforcement
occurs when a positive outcome follows a desired behavior. It’s perhaps the most common type
of reinforcement and the type we think of when an employee receives some type of “reward.”
Increased pay, promotions, praise from a manager or coworkers, and public recognition would
all be considered positive reinforcement when given as a result of an employee exhibiting desired
behaviors. For positive reinforcement to be successful, employees need to see a direct link between
their behaviors and desired outcomes (see Chapter 6 on motivation for more discussion of such
issues). If the consequences aren’t realized until long after the specific behaviors, then the odds
that employees will link the two are minimized. Negative reinforcement occurs when an unwanted
outcome is removed following a desired behavior. Have you ever performed a task for the specific
reason of not getting yelled at? If so, you learned to perform certain behaviors through the use
of negative reinforcement. Perhaps there are some tasks your job requires that you don’t enjoy.
If your manager removes these responsibilities specifically because you perform well at another
aspect of your job, then this could also be seen as negative reinforcement. It’s important to remem-
ber that even though the word “negative” has a sour connotation to it, it’s designed to increase
desired behaviors.
FIGURE 8-2 Contingencies of Reinforcement
Wanted
Outcome
Consequence
Is Added
Consequence
Is Removed
Unwanted
Outcome
Increases Desired
Behaviors
Decreases Unwanted
Behaviors
Positive
Reinforcement
Negative
Reinforcement
Extinction
Punishment
Final PDF to printer
238 C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 238 10/11/17 08:45 AM
The next two contingencies
of reinforcement are designed to
decrease undesired behaviors. Pun-
ishment occurs when an unwanted
outcome follows an unwanted behav-
ior. Punishment is exactly what it
sounds like. In other words, employ-
ees are given something they don’t
like as a result of performing behav-
iors that the organization doesn’t
like. Suspending an employee for
showing up to work late, assigning
job tasks generally seen as demean-
ing for not following safety proce-
dures, or even firing an employee
for gross misconduct are all exam-
ples of punishment. Extinction occurs when there is the removal of a consequence following an
unwanted behavior. The use of extinction to reinforce behavior can be purposeful or accidental.
Perhaps employees receive attention from coworkers when they act in ways that are somewhat
childish at work. Finding a way to remove the attention would be a purposeful act of extinction.
Similarly though, perhaps employees work late every now and then to finish up job tasks when
work gets busy, but their manager stops acknowledging that hard work. Desired behavior that’s
not reinforced will diminish over time. In this way, a manager who does nothing to reinforce good
behavior is actually decreasing the odds that it will be repeated!
In general, positive reinforcement and extinction should be the most common forms of rein-
forcement used by managers to create learning among their employees. Positive reinforcement
doesn’t have to be in the form of material rewards to be effective. There are many ways for
managers to encourage wanted behaviors. Offering praise, providing feedback, public recogni-
tion, and small celebrations are all ways to encourage employees and increase the chances they
will continue to exhibit desired behaviors. At the same time, extinction is an effective way to
stop unwanted behaviors. Both of these contingencies deliver their intended results, but perhaps
more importantly, they do so without creating feelings of animosity and conflict. Although
punishment and negative reinforcement will work, they tend to bring other, detrimental conse-
quences along with them.
Whereas the type of reinforcement used to modify behavior is important, research also shows
that the timing of reinforcement is equally important.14 Therefore, it’s important to examine the
timing of when the contingencies are applied, referred to as schedules of reinforcement. Table 8-2
provides a summary of the five schedules of reinforcement. Continuous reinforcement is the sim-
plest schedule and happens when a specific consequence follows each and every occurrence of a
desired behavior. New learning is acquired most rapidly under a continuous schedule.15 For most
jobs, continuous reinforcement is impractical. As a manager, can you imagine providing positive
reinforcement every time someone exhibits a desired behavior? It’s a good thing that research also
shows that under many circumstances, continuous reinforcement might be considered the least
long lasting, because as soon as the consequence stops, the desired behavior stops along with it.16
Once a behavior has been acquired, some form of intermittent scheduling is more effective.17
The other four schedules differ in terms of their variability and the basis of the consequences.
Two schedules are interval based; that is, they distribute reinforcement based on the amount of
time that passes. A fixed interval schedule is probably the single most common form of reinforce-
ment schedule. With this schedule, workers are rewarded after a certain amount of time, and the
length of time between reinforcement periods stays the same. Every time employees get a pay-
check after a predetermined period of time, they’re being reinforced on a fixed interval schedule.
Variable interval schedules are designed to reinforce behavior at more random points in time. A
supervisor walking around at different points of time every day is a good example of a variable
interval schedule. If that supervisor walked around at the same exact time every day, do you think
workers would be more or less prone to exhibit good behaviors throughout the day?
Positive reinforcement, like
public recognition, both
encourages employees
and helps ensure that
desirable behaviors will be
imitated and repeated.
©Caiaimage/Paul Bradbury/OJO+/Getty Images RF
Final PDF to printer
239C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 239 10/11/17 08:45 AM
The other two reinforcement schedules are based on actual behaviors. Fixed ratio schedules rein-
force behaviors after a certain number of them have been exhibited. Some manufacturing plants
have created piece-rate pay systems in which workers are paid according to the number of items
they produce. Employees know ahead of time how many items they have to produce to be rein-
forced. Variable ratio schedules reward people after a varying number of exhibited behaviors. Sales-
people, for example, are often compensated based on commission because they receive extra pay
every time they sell an item. However, a car salesperson doesn’t make a sale every time someone
walks in the door of the dealership. Sometimes it takes exhibiting good sales behaviors to eight or
nine customers to make a sale. Take a slot machine as an example. The machine doesn’t reward you
for every lever pull or even every 10 lever pulls—you never know when the next winning pull will
be. Would you say that slot machines do a good job of reinforcing the behavior that casinos would
like you to have? You bet! There is a significant amount of evidence that variable ratio reinforce-
ment and the “like” button is largely responsible for the addictive growth of numerous social media
platforms such as Facebook and Twitter.18 Think about what happens every time you post some-
thing on social media—you wait to see who “likes” it or responds. That good feeling you get when
someone does? That’s variable ratio reinforcement in action and it makes you want to do it again.
On the whole, research has consistently shown that variable schedules lead to higher levels of
performance than fixed schedules.19 Think about it this way: Do you study more consistently in a
class that gives pop quizzes or one that simply tests you three set times a semester? Research also
shows that desired behaviors tend to disappear much more quickly when reinforcement is discon-
tinued under fixed plans. However, variable schedules are not always appropriate for some types
of reinforcement. How would you like it if your employer decided to give you your paychecks on
a variable schedule? Sorry, you’re not getting a paycheck this week—maybe next week! Moreover,
studies suggest that continuous or fixed schedules can be better for reinforcing new behaviors or
behaviors that don’t occur on a frequent basis.
OBSERVATION In addition to learning through reinforcement, social learning theory argues that
people in organizations have the ability to learn through the observation of others.20 In fact, many
would argue that social learning is the primary way by which employees gain knowledge in organi-
zations.21 Think about where you’re most likely to get your cues while working in an organization.
When possible, chances are good you’ll look around at other employees to figure out the appropri-
ate behaviors on your job. Not only do employees have the ability to see the link between their
own behaviors and their consequences, they can also observe the behaviors and consequences of
others.22 When employees observe the actions of others, learn from what they observe, and then
repeat the observed behavior, they’re engaging in behavioral modeling.
For behavioral modeling to occur successfully, a number of processes have to take place. These
steps are shown in Figure 8-3. First, the learner must focus attention on an appropriate model and
TABLE 8-2 Schedules of Reinforcement
REINFORCEMENT
SCHEDULE
REWARD GIVEN
FOLLOWING
POTENTIAL LEVEL OF
PERFORMANCE
EXAMPLE
Continuous Every desired behavior High, but difficult to
maintain
Praise
Fixed interval Fixed time periods Average Paycheck
Variable interval Variable time periods Moderately high Supervisor walk-by
Fixed ratio Fixed number of desired
behaviors
High Piece-rate pay
Variable ratio Variable number of
desired behaviors
Very high Commission pay
Final PDF to printer
240 C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 240 10/11/17 08:45 AM
accurately perceive the critical behavior the model exhibits. That model might be a supervisor, a
coworker, or even a subordinate. Some organizations go out of their way to supply role models for
newcomers or inexperienced workers to watch and learn from. For instance, Praxair, the global
industrial gases company, rewards and encourages older workers to model behavior and share
their knowledge. In this way, not only does explicit knowledge get passed on but also tacit knowl-
edge. Company representatives believe this has significantly reduced the time it takes for recent
graduates to become competent and it passes along skills required to replace retiring employees.23
In fact, because tacit knowledge is so difficult to communicate, modeling might be the single best
way to acquire it. For that reason, modeling is a continual process that is used at all levels of many
organizations. Ursula Burns’s ascent to CEO of Xerox was carefully controlled as she was allowed
to closely observe and model former CEO Anne Mulcahy for a number of years before taking
control.24 At Verizon, new CEO Lowell McAdam was tabbed to take over the spot but spent over
a year observing and modeling the prior CEO before moving into the job. At the time, McAdam
said, “I’m a very roll-up-your-sleeves guy. I need to learn to be CEO.”25 Needless to say, choosing
a good model is important, and not all models are good ones. There is a great deal of evidence
that supports the notion that employees will learn to behave unethically when in the presence
of others who model that same behavior.26 Salomon Brothers, the New York–based investment
bank, learned this lesson the hard way when employees began to model the unethical behaviors of
their managers and leaders.27 In addition to unethical behavior, there is substantial evidence that
employees will behavior model counterproductive work behaviors such as aggression and absen-
teeism when they see others in the organization exhibit those behaviors.28
Second, the learner needs to remember exactly what the model’s behavior was and how they
did it. This step is very difficult when watching experts perform their job because so much of what
they do remains unspoken and can occur at a rapid pace. Third, the learner must undertake pro-
duction processes or actually be able to reproduce what the model did. Not only must the learner
have the requisite knowledge and physical skills to be able to perform the task; now he or she
must translate what’s been observed into action. Do you remember the first time you drove a car?
Chances are good you’d been watching other drivers for many years, picking up bits and pieces
of how to do it through observation. However, things became different when you were behind the
wheel for the first time. Suddenly, there was a lot of information to process, and years and years of
observation had to be put into action.
Fourth, the last step of behavioral modeling is reinforcement. This reinforcement can come
from observation, direct experience, or both. The learner can observe the consequences of the
model having exhibited the behavior (positive reinforcement or punishment), which in itself will
help ingrain the desirability of performing the behavior. In addition, it’s important for the learner
to receive reinforcement after replicating the behavior. If the newly acquired behaviors are posi-
tively reinforced, the likelihood of continued behavior increases.
FIGURE 8-3 The Modeling Process
Source: Adapted from H.M. Weiss, “Learning Theory and Industrial and Organizational Psychology,” Handbook of Indus-
trial and Organizational Psychology, ed. M.D. Dunnette and L.M. Hough (Consulting Psychologists Press: Palo Alto, CA,
1990), pp. 75–169.
Learner
focuses
attention on
the critical
behaviors
exhibited by
the model
Attentional
Processes
Learner must
remember the
behaviors of
the model
once the
model is no
longer present
Retention
Processes
Learner must
have the
appropriate
skill set and be
able to
reproduce the
behavior
Production
Processes
Learner must
view the model
receiving
reinforcement for
the behavior and
then receive it
themself
Reinforcement
Final PDF to printer
241C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 241 10/11/17 08:45 AM
GOAL ORIENTATION Before
we leave this section, it’s impor-
tant to recognize that people
learn somewhat differently
according to their predisposi-
tions or attitudes toward learn-
ing and performance. These
differences are reflected in dif-
ferent “goal orientations” that
capture the kinds of activities
and goals that people priori-
tize. Some people have what’s
known as a learning orientation,
where building competence is
deemed more important than
demonstrating competence.
“Learning-oriented” persons
enjoy working on new kinds of tasks, even if they fail during their early experiences. Such people
view failure in positive terms—as a means of increasing knowledge and skills in the long run.29
For others, the demonstration of competence is deemed a more important goal than the build-
ing of competence. That demonstration of competence can be motivated by two different thought
processes. Those with a performance-prove orientation focus on demonstrating their competence
so that others think favorably of them. Those with a performance-avoid orientation focus on demon-
strating their competence so that others will not think poorly of them. In either case, “performance-
oriented” people tend to work mainly on tasks at which they’re already good, preventing them
from failing in front of others. Such individuals view failure in negative terms—as an indictment of
their ability and competence.
Research has shown that a learning goal orientation improves self-confidence, feedback-
seeking behavior, learning strategy development, and learning performance.30 Research on the
two performance orientations is more mixed. Although it would seem that focusing on perfor-
mance should improve performance-based outcomes, research shows that isn’t necessarily the
case. On the whole, a performance-prove orientation tends to be a mixed bag, producing varying
levels of performance and outcomes. What’s more clear are the detrimental effects of having a
performance-avoid orientation. Employees who enter learning situations with a fear of looking
bad in front of others tend to learn less and have substantially higher levels of anxiety.31 What
kind of orientation do you tend to exhibit? See our OB Assessments feature to find out. Regard-
less of an individual’s general tendency though, it has been found that managers or trainers
can set training-specific orientations toward learning.32 In other words, they can instruct you to
have a specific goal orientation before you start a training session. Under such conditions, set-
ting learning-oriented goals for those in training is likely to foster more skill development than
setting performance-oriented goals.33
M E T H O D S O F D E C I S I O N M A K I N G
How do employees take explicit and tacit knowledge, however it’s gained, and turn that knowl-
edge into effective decision making? Sometimes that process is very straightforward. Programmed
decisions are decisions that become somewhat automatic because people’s knowledge allows
them to recognize and identify a situation and the course of action that needs to be taken. As
shown in Figure 8-4, experts often respond to an identified problem by realizing that they’ve
dealt with it before. That realization triggers a programmed decision that’s implemented and
then evaluated according to its ability to deliver the expected outcome. For experts who possess
high levels of explicit and tacit knowledge, many decisions they face are of this programmed
variety. That’s not to say that the decisions are necessarily easy. It simply means that their experi-
ence and knowledge allows them to see the problems more easily and recognize and implement
solutions more quickly.
8.4
What two methods can
employees use to make
decisions?
Ursula Burns was provided
an unusual opportunity
to learn by observation
and behavioral modeling
before becoming CEO
of Xerox. She essentially
co-led with her predeces-
sor for two years to gain
insider experience before
taking the helm.
©Bloomberg/Getty Images
Final PDF to printer
242 C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 242 10/11/17 08:45 AM
OB ASSESSMENTS
SCORING AND INTERPRETATION
Learning Orientation: Sum up items 1–4. _____
Performance-Prove Orientation: Sum up items 5–7. _____
Performance-Avoid Orientation: Sum up items 8–10. _____
For learning orientation, scores of 16 or more are above average, and scores of 15 or less are below
average. For the two performance orientations, scores of 11 or more are above average, and scores
of 10 or less are below average.
Source: Adapted from J.F. Brett and D. VandeWalle, “Goal Orientation and Goal Content as Predictors of Performance
in a Training Program,” Journal of Applied Psychology 84 (1999), pp. 863–73. Copyright (c) 1999 by the American Psycho-
logical Associated.
GOAL ORIENTATION
What does your goal orientation look like? This assessment is designed to measure all three
dimensions of goal orientation. Please write a number next to each statement that indicates the
extent to which it accurately describes your attitude toward work while you are on the job. Answer
each question using the response scale provided. Then sum up your answers for each of the three
dimensions. (Instructors: Assessments on rational decision making, intuition, learning potential,
and social identity can be found in the PowerPoints in the Connect Library’s Instructor Resources
and in the Connect assignments for this chapter.)
1
STRONGLY
DISAGREE
2
DISAGREE
3
NEUTRAL
4
AGREE
5
STRONGLY AGREE
1. I would rather do something difficult where I learn a lot than something easy. ________
2. I am constantly seeking out moments that allow me to better myself. ________
3. I relish the opportunity to learn new things by doing something I’ve never
done before.
________
4. Taking a chance on something is worth it if I grow from it as a result. ________
5. I enjoy proving that I can perform better than others at work. ________
6. Working hard to show others how well I can do is important. ________
7. I like it when others know how well I can do things at work. ________
8. I generally won’t try things if others might see me fail. ________
9. I avoid tasks that might show others that I have a low ability to be successful. ________
10. Even though I might learn from it, I won’t try something new in front of
others if it might show my low ability.
To experts, programmed decisions sometimes comes across as intuition or a “gut feeling.” Intu-
ition can be described as emotionally charged judgments that arise through quick, nonconscious,
and holistic associations.34 There is almost unanimous consent among researchers that intuition
is largely a function of learning—tacit knowledge gained through reinforcement, observation, and
experience allows a decision maker to decide more quickly and confidently.35 Because of their
Final PDF to printer
243C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 243 10/11/17 08:45 AM
FIGURE 8-4 Programmed and Nonprogrammed Decisions
Yes
Yes
Yes
No
No
No
Experts tend to recognize
problems more quickly
than novices
Programmed Decisions Nonprogrammed Decisions
(using rational decision-making model)
Experts have the ability
to recognize patterns and
situations that novices
don’t
Identify the problem
Is the problem
recognized? Has
it been dealt with
before?
Does the
solution deliver
the expected
outcome?
Implement
appropriate solution
Does the
solution deliver
the expected
outcome?
Determine
appropriate criteria
for making a decision
Generate list of
available alternatives
Evaluate the
alternatives against
criteria
Choose the solution
that maximizes value
Implement appropriate
solution
tacit knowledge, experts sometimes cannot put into words why they know that a problem exists,
why a solution will work, or how they accomplished a task. They just “know.” Of course, the dif-
ficulty arises in knowing when to trust that “gut instinct” and when not to.36 As a general rule of
thumb, you should probably ask yourself how much expertise you have about the subject of the
judgment. Research is clear that intuition can be a very effective way to make decisions, but only
Final PDF to printer
244 C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 244 10/11/17 08:45 AM
when those making the decisions have a high level of domain expertise.37 In other words, don’t
go laying down your life savings on a spin of the roulette wheel in Vegas because your intuition
tells you “red”!
Intuitive decision making is perhaps never more important than during a crisis. A crisis
situation is a change—whether sudden or evolving—that results in an urgent problem that must
be addressed immediately. For businesses, a crisis is anything with the potential to cause sud-
den and serious damage to its employees, reputation, or bottom line. One of the key factors in
almost all crises is that decisions must be made quickly.38 Unless there has been some form
of specific preplanning for that crisis, managers (who should have the most tacit knowledge
to support their decisions) must use their intuition rather than take a lengthy period of time
to think through all of their options.39 When a manager uses intuition to make a decision in a
crisis situation, followers often misinterpret the manager’s intent because the managers can’t
put the reasons for their decisions into words (or don’t have the time to do so).40 In turn, the
implementation of their plan often suffers. Therefore, managers who make decisions face two
major questions: How can they ensure that others follow their lead when the path is unclear,
and how can they confirm that their intuition is not faulty? Karl Weick, a preeminent scholar on
crisis management at the University of Michigan, suggests five steps for communicating intent
to others when using intuition:
1. Here’s what I think we face. (How does the manager perceive the situation?)
2. Here’s what I think we should do. (A task-focused statement of what the manager wants to happen)
3. Here’s why. (The reasoning behind the decision)
4. Here’s what we should keep our eye on. (What things should the staff look for to ensure the intu-
ition is correct or that the situation hasn’t changed?)
5. Now, talk to me. (Confirm that everyone understands their roles and that there is no other infor-
mation to consider.)41
These communications steps are important for a manager making intuitive decisions because
they help others follow directives more easily, while also providing a check on the manager to
ensure he or she observes the crisis environment correctly.
When a situation arises that is new, complex, and not recognized, it calls for a nonprogrammed
decision on the part of the employee. Organizations are complex and changing environments, and
many workers face uncertainty on a daily basis. In these instances, employees have to make sense
of their environment, understand the problems they’re faced with, and come up with solutions to
overcome them. As a general rule of thumb, as employees move up the corporate ladder, a larger
percentage of their decisions become less and less programmed. How should decision making
proceed in such contexts? The rational decision-making model offers a step-by-step approach to
making decisions that maximize outcomes by examining all available alternatives. As shown in
Figure 8-4, this model becomes relevant when people don’t recognize a problem as one they’ve
dealt with before.
The first step in the rational decision-making model is to identify the criteria that are important
in making the decision, taking into account all involved parties. The second step is to generate
a list of all available alternatives that might be potential solutions to the problem. At this point,
evaluating the alternatives is not necessary. The responsibility simply lies in coming up with as
many potential solutions as possible. The third step in the model is the evaluation of those alterna-
tives against the criteria laid out in step one. Does it matter how much the alternative costs? What
exactly will happen as a result of various choices? What will the side effects of the alternative be?
The fourth step is to select the alternative that results in the best outcome. That is, given the costs
and benefits of each alternative, which alternative provides us with the most value? The fifth step
is to implement the alternative.
The rational decision-making model assumes that people are, of course, perfectly rational. How-
ever, problems immediately arise when we start to examine some of the assumptions the model
makes about human decision makers.42 The model assumes there is a clear and definite problem
to solve and that people have the ability to identify what that exact problem is. It also assumes
that decision makers have perfect information—that they know and are able to identify the avail-
able alternatives and the outcomes that would be associated with those alternatives. The model
Final PDF to printer
245C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 245 10/11/17 08:45 AM
OB ON SCREEN
THE BIG SHORT
OK, so here’s how a synthetic CDO works. Let’s say I bet $10 million on a blackjack hand.
With those words, Selena Gomez (international pop star) begins to describe how a complicated
collateralized debt obligation (CDO) process works and how it almost took down the entire finan-
cial industry in 2008 in The Big Short (Dir: Adam McKay, Paramount, 2015). Gomez does this
along with Richard Thaler, Ph.D., (widely known as the father of behavioral economics) while sit-
ting at a blackjack table in a casino in Las Vegas. The scene is one of a number of cutaways where
various celebrities you wouldn’t expect (think Margot Robbie and Anthony Bourdain) break into
the movie to describe detailed and complicated financial topics in simple terms the audience can
understand. At a key point in the movie, while interviewing an arrogant financial manager, hedge
fund manager Mark Baum (Steve Carell) comes to the realization that the housing market is all
built on fraud and faulty decision making on the part of banks and investors.
During this interview, the movie cuts away to Gomez and Thaler who attempt to explain how
the synthetic CDO process works. Thaler describes a classic decision-making error—in basketball
what is known as the “hot hand fallacy” in which a player makes a bunch of shots in a row and
people become overconfident in the odds the next shot will be made. While playing a hand of
blackjack, Selena is dealt a Jack and an eight (18) and the dealer’s one card showing is a 7. This
results in an 87 percent chance that Selena will win the hand, plus she’s been on a hot streak. A
woman standing behind Gomez turns to another person in the crowd and makes a $50 million bet
that Gomez will win the hand and offers 3–1 odds. Then others make a bet on that second bet and
on and on. So the original $10 million blackjack bet has now turned in to billions of dollars rid-
ing on the outcome of the one hand. In the context of the movie, during the real estate boom, the
hot hand fallacy played a role when investors mistakenly assumed that the housing market would
continue to rise and never go down.
©Pictorial Press Ltd/Alamy
further assumes that time and money are generally not issues when it comes to making a deci-
sion, that decision makers always choose the solution that maximizes value, and that they will act
in the best interests of the organization. Given all these assumptions, perhaps we shouldn’t label
the model as “rational” after all! See our OB on Screen feature for an example of how irrational
decision making played a role in the financial crash of 2008.
Final PDF to printer
246 C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 246 10/11/17 08:45 AM
D E C I S I O N – M A K I N G P R O B L E M S
Because employees don’t always make rational decisions, it’s easy to second-guess decisions after
the fact. Many decisions made inside organizations look good at the time and were made with
perfectly good justifications to support them but turn out to have what are perceived to be “bad
results.” The reality, however, is that it’s a lot easier to question decisions in hindsight. As War-
ren Buffett, CEO of Berkshire Hathaway, is often quoted as saying, “In the business world, the
rearview mirror is always clearer than the windshield.” Our responsibility here is not to rehash all
the poor decisions employees and managers have made (and there are many of them!), but rather
to detail some of the most common reasons for bad decision making—in other words, when are
people most likely to falter in terms of the rational decision-making model and why?
LIMITED INFORMATION Although most employees perceive themselves as rational decision
makers, the reality is that they are all subject to bounded rationality. Bounded rationality is the
notion that decision makers simply do not have the ability or resources to process all available
information and alternatives to make an optimal decision.43 A comparison of bounded rational-
ity and rational decision making is presented in Table 8-3. This limit results in two major prob-
lems for making decisions. First, people have to filter and simplify information to make sense of
their complex environment and the myriad of potential choices they face.44 This simplification
leads them to miss information when perceiving problems, generating and evaluating alternatives,
or judging the results. Second, because people cannot possibly consider every single alternative
when making a decision, they satisfice. Satisficing results when decision makers select the first
acceptable alternative considered.45
In addition to choosing the first acceptable alternative, decision makers tend to come up with
alternatives that are straightforward and not that different from what they’re already doing. When
you and another person are deciding where to go out for dinner tonight, will you sit down and
list every restaurant available to you within a certain mile limit? Of course not. You’ll start listing
off alternatives, generally starting with the closest and most familiar, until both parties arrive at
a restaurant that’s acceptable to them. Making decisions this way is no big deal when it comes
to deciding where to go for dinner, because the consequences of a poor decision are minimal.
8.5
What decision-making
problems can prevent
employees from
translating their learning
into accurate decisions?
TABLE 8-3 Rational Decision Making vs. Bounded Rationality
TO BE RATIONAL DECISION MAKERS, WE
SHOULD . . .
BOUNDED RATIONALITY SAYS WE
ARE LIKELY TO . . .
Identify the problem by thoroughly examining
the situation and considering all interested
parties.
Boil down the problem to something that is
easily understood.
Develop an exhaustive list of alternatives to
consider as solutions.
Come up with a few solutions that tend to be
straightforward, familiar, and similar to what is
currently being done.
Evaluate all the alternatives simultaneously. Evaluate each alternative as soon as we think
of it.
Use accurate information to evaluate
alternatives.
Use distorted and inaccurate information
during the evaluation process.
Pick the alternative that maximizes value. Pick the first acceptable alternative (satisfice).
Sources: Adapted from H.A. Simon, “Rational Decision Making in Organizations,” American Economic Review 69 (1979),
pp. 493–513; D. Kahneman, “Maps of Bounded Rationality: Psychology for Behavioral Economics,” The American Economic
Review 93 (2003), pp. 1449–75; and S.W. Williams, Making Better Business Decisions (Thousand Oaks, CA: Sage, 2002).
Final PDF to printer
247C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 247 10/11/17 08:45 AM
However, many managers make decisions that have critical consequences for their employees and
their customers. In those cases, making a decision without thoroughly looking into the alterna-
tives becomes a problem!
FAULTY PERCEPTIONS As decision makers, employees are forced to rely on their perceptions to
make decisions. Perception is the process of selecting, organizing, storing, and retrieving informa-
tion about the environment. Although perceptions can be very useful—because they help us to make
sense of the environment around us—they can often become distorted versions of reality. Percep-
tions can be dangerous in decision making because we tend to make assumptions or evaluations on
the basis of them. Selective perception is the tendency for people to see their environment only as it
affects them and as it is consistent with their expectations. Has someone ever told you, “You only
see what you want to see”? If a relative, spouse, or significant other said that to you, chances are
good it probably wasn’t the best experience. That person was likely upset that you didn’t perceive
the environment (or what was important to them) the same way they did. Selective perception
affects our ability to identify problems, generate and evaluate alternatives, and judge outcomes. In
other words, we take “shortcuts” when we process information. In the following paragraphs, we’ll
discuss some of the ways in which we take shortcuts when dealing with people and situations.
One false assumption people tend to make when it comes to other people is the belief that oth-
ers think, feel, and act the same way they do. This assumption is known as a projection bias. That
is, people project their own thoughts, attitudes, and motives onto other people. “I would never
do that—that’s unethical” equates to “They would never do that—that’s unethical.” Projection bias
causes problems in decision making because it limits our ability to develop appropriate criteria
for a decision and evaluate decisions carefully. The bias causes people to assume that everyone’s
criteria will be just like theirs and that everyone will react to a decision just as they would.
Another example of faulty perceptions is caused by the way we cognitively organize people into
groups. Social identity theory holds that people identify themselves by the groups to which they
belong and perceive and judge others by their group memberships.46 There is a substantial amount
of research that shows that we like to categorize people on the basis of the groups to which
they belong.47 These groups could be based on demographic information (gender, race, religion,
hair color), occupational information (scientists, engineers, accountants), where they work (GE,
Halliburton, Goldman Sachs), what country they’re from (Americans, French, Chinese), or any
other subgroup that makes sense to the perceiver. You might categorize students on campus by
whether they’re a member of a fraternity or sorority. Those inside the Greek system categorize
people by which fraternity or sorority they belong to. And people within a certain fraternity might
group their own members on the basis of whom they hang out with the most. There is practically
no end to the number of subgroups that people can come up with.
A stereotype occurs when assumptions are made about others on the basis of their member-
ship in a social group.48 Although not all stereotypes are bad per se, our decision-making process
becomes faulty when we make inaccurate generalizations. Many companies work hard to help
their employees avoid stereotyping because doing so can lead to illegal discrimination in the work-
place. Facebook, Ortho-McNeil Pharmaceutical, Wells Fargo, Google, Kaiser Permanente, and
Microsoft (just to name a few) have developed extensive diversity training programs to help their
employees overcome specific cultural, racial, and gender stereotypes in the workplace.49
When confronted with situations of uncertainty that require a decision on our part, we often
use heuristics—simple, efficient rules of thumb that allow us to make decisions more easily. In
general, heuristics are not bad. In fact, they lead to correct decisions more often than not.50 How-
ever, heuristics can also bias us toward inaccurate decisions at times. Consider this example from
one of the earliest studies on decision-making heuristics: “Consider the letter R. Is R more likely
to appear in the first position of a word or the third position of a word?”51 If your answer was the
first position of a word, you answered incorrectly and fell victim to one of the most frequently
talked about heuristics. The availability bias is the tendency for people to base their judgments on
information that is easier to recall. It’s significantly easier for almost everyone to remember words
in which R is the first letter as opposed to the third. The availability bias is why more people are
afraid to fly than statistics would support. Every single plane crash is plastered all over the news,
making plane crashes more available in memory than successful plane landings.
Final PDF to printer
248 C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 248 10/11/17 08:45 AM
TABLE 8-4 Decision-Making Biases
NAME OF BIAS DESCRIPTION
Anchoring The tendency to rely too heavily, or “anchor,” on one trait or piece of
information when making decisions even when the anchor might be
unreliable or irrelevant.
Example: One recent study showed that initial bids for a bottle of wine
in an auction could be heavily influenced by simply having subjects
write down the last two digits of their Social Security number prior to
putting a value on the bottle. Those with higher two-digit numbers
tended to bid 60–120 percent more for a bottle of wine than those
with low numbers.
Framing The tendency to make different decisions based on how a question or
situation is phrased.
Example: Why do gas stations (or any retailer) give out discounts for
paying cash as opposed to adding a surcharge for using a credit card?
The discount is seen as a gain, while the surcharge is seen as a loss.
Because humans are loss averse, we’re more likely to give up the dis-
count (the gain) than accept the surcharge (the loss).
Representativeness The tendency to assess the likelihood of an event by comparing it to a
similar event and assuming it will be similar.
Example: Because a flipped coin has come up heads 10 times in a row,
some assume the likelihood that it will come up tails is greater than
50–50. This is sometimes referred to as the “gambler’s fallacy.”
Contrast The tendency to judge things erroneously based on a reference that is
near to them.
Example: If you were to take your hand out of a bowl of hot water and
place it in a bowl of lukewarm water, you would describe that water
as “cold.” If someone else were to take their hand out of a bowl of
extremely cold water and place it in the same bowl of lukewarm water,
they would describe that water as “hot.”
Recency The tendency to weigh recent events more than earlier events.
Example: A manager tends to weight ratings in performance evalu-
ations based on an employee’s behavior during the prior month as
opposed to his or her behavior over the entire evaluation period.
Ratio Bias Effect The tendency to judge the same probability of an unlikely event as
lower when the probability is presented in the form of a ratio of smaller
rather than of larger numbers.
Example: When offered an opportunity to win $1 if they drew a red jelly
bean, people frequently elected to draw from a bowl that contained a
greater number but a smaller proportion of red beans (e.g., 7 in 100
vs. 1 in 10). Participants knew the probabilities were against them, but
they “felt” they had a better chance when there were more beans.
Sources: J. Baron, Thinking and Deciding, 3rd ed. (Cambridge, UK: Cambridge University Press, 2000); V. Denes-Raj and
S. Epstein, “Conflict between Intuitive and Rational Processing: When People Behave against Their Better Judgment,”
Journal of Personality and Social Psychology 66 (1994), pp. 819–29; R.E. Nisbett and L. Ross, Human Inference: Strate-
gies and Shortcomings of Social Judgment (Englewood Cliffs, NJ: Prentice Hall, 1980); D.G. Meyers, Social Psychology
(Boston, MA: McGraw-Hill, 2005); G. Gigerenzer, P.M. Todd, and ABC Research Group, Simple Heuristics That Make
Us Smart (New York: Oxford University Press, 1999); D. Kahneman, A. Tversky, and P. Slovic, Judgment under Uncer-
tainty: Heuristics & Biases (Cambridge, UK: Cambridge University Press, 1982); and D. Kahneman and A. Tversky,
“Choices, Values and Frames,” American Psychologist 39 (1984), pp. 341–50.
Final PDF to printer
249C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 249 10/11/17 08:45 AM
Aside from the availability bias, there are many other biases that affect the way we make
decisions. Table 8-4 describes six more of the most well-researched decision-making biases. After
reading them, you might wonder how we ever make accurate decisions at all! The answer is that
we do our best to think rationally through our most important decisions prior to making them and
tend to use heuristics for decisions that are less important or that need to be made more quickly.
Regardless of how often we fall victim to the biases, being aware of potential decision errors can
help us make them less frequently. Interestingly enough, Lowe’s, the North Carolina–based home
improvement retailer, and several other companies are actually trying to take advantage of these
types of biases and behavioral economics in order to get employees to make better decisions about
their health benefits.52 Workers are getting bombarded from all angles!
FAULTY ATTRIBUTIONS Another category of decision-making problems centers on how we
explain the actions and events that occur around us. Research on attributions suggests that when
people witness a behavior or outcome, they make a judgment about whether it was internally or
externally caused. For example, when a coworker of yours named Joe shows up late to work and
misses an important group presentation, you’ll almost certainly make a judgment about why that
happened. You might attribute Joe’s outcome to internal factors—for example, suggesting that
he is lazy or has a poor work ethic. Or you might attribute Joe’s outcome to external factors—for
example, suggesting that there was unusually bad traffic that day or that other factors prevented
him from arriving on time.
The fundamental attribution error argues that people have a tendency to judge others’ behaviors
as due to internal factors.53 This error suggests that you would likely judge Joe as having low moti-
vation, poor organizational skills, or some other negative internal attribute. What if you yourself
had showed up late? It turns out that we’re less harsh when judging ourselves. The self-serving bias
occurs when we attribute our own failures to external factors and our own successes to internal
factors. Interestingly, evidence suggests that attributions across cultures don’t always work the
same way; see our OB Internationally feature for more discussion of this issue.
One model of attribution processes suggests that when people have a level of familiarity with
the person being judged, they’ll use a more detailed decision framework. This model is illustrated
in Figure 8-5.54 To return to our previous example, if we want to explore why Joe arrived late to
work, we can ask three kinds of questions:
Consensus: Did others act the same way under similar situations? In other words, did others
arrive late on the same day?
Distinctiveness: Does this person tend to act differently in other circumstances? In other words,
is Joe responsible when it comes to personal appointments, not just work appointments?
Consistency: Does this person always do this when performing this task? In other words, has Joe
arrived late for work before?
The way in which these questions are answered will determine if an internal or external attribu-
tion is made. An internal attribution, such as laziness or low motivation for Joe, will occur if there
is low consensus (others arrived on time), low distinctiveness (Joe is irresponsible with other
commitments as well), and high consistency (Joe has arrived late before). An external attribution,
such as bad traffic or a power outage, will occur if there is high consensus (others arrived late),
high distinctiveness (Joe is responsible with other commitments), and low consistency (Joe has
never come late to work before).
ESCALATION OF COMMITMENT Our last category of decision-making problems centers on
what happens as a decision begins to go wrong. Escalation of commitment refers to the decision to
continue to follow a failing course of action.55 The expression “throwing good money after bad”
captures this common decision-making error. An enormous amount of research shows that people
have a tendency, when presented with a series of decisions, to escalate their commitment to previ-
ous decisions, even in the face of obvious failures.56 Why do decision makers fall victim to this sort
of error? They may feel an obligation to stick with their decision to avoid looking incompetent.
They may also want to avoid admitting that they made a mistake. Those escalation tendencies
Final PDF to printer
250 C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 250 10/11/17 08:45 AM
become particularly strong when decision makers have invested a lot of money into the decision
and when the project in question seems quite close to completion.57
One prominent example of escalation of commitment is United Airlines’ abandonment of the
automated baggage handling system at the Denver International Airport. When it initially opened
(after a two-year delay), the baggage handling system with 26 miles of track designed to haul
baggage across three terminals was supposed to be the single, most advanced baggage handling
system in the world. However, originally scheduled to cost $186 million, a series of delays and
technological problems caused the cost of the system to skyrocket by $1 million per day. Because
of a series of technological issues, the system never really worked very well. In fact, United was the
only airline in the airport willing to use it. It took 10 years and many mangled and lost suitcases
before United finally “cut its losses,” saving itself $1 million a month in maintenance fees.58 If you
Any time a major accident occurs in a company, or any time a significant breach of ethics occurs,
a company is expected to respond accordingly. One of the natural reactions of employees, cus-
tomers, and other observers is to attribute the cause of the negative event to someone. Place-
ment or assignment of this blame might be very different, depending on the part of the world in
which the company is operating. A culture such as the United States tends to blame the particular
individuals most responsible for the event, whereas East Asian (China, Korea, Japan) cultures
tend to blame the organization itself. For example, when scandals within organizations occur
(e.g., “rogue trading” in an investment bank), newspapers in the United States often publish the
name of the employee and discuss the individual worker involved, whereas East Asian newspapers
refer to the organization itself.
Interestingly, these biases place different responsibilities on the leaders of organizations in
these countries. In East Asian cultures, it’s typical for the leader of an organization to take the
blame for accidents, regardless of whether he or she had direct responsibility for them. For exam-
ple, the director of a hospital in Tokyo was forced to resign when the cover-up of a medical acci-
dent was discovered, even though the director didn’t start his job until after the cover-up took
place! Similar events are common, such as the resignation of the CEO of Japan Airlines after a jet
crashed, killing 500 people. In the United States, in contrast, CEOs rarely take the same level of
blame. When Joseph Hazelwood crashed the Exxon Valdez into the Alaskan coastline, there were
no calls for the Exxon CEO to resign. It was simply assumed by the American public that he had
nothing to do with the accident.
Much of the reasoning for such differences has to do with the way the cultures view individuals
and groups. East Asian cultures tend to treat groups as entities and not as individuals, whereas the
culture in the United States tends to see individuals acting of their own accord. This difference
means that organizational leaders should be very cognizant of how to handle crises, depending
on the country in which the negative event occurs. An apology offered by a senior leader is likely
to be seen by East Asians as the company taking responsibility, whereas in the United States, it’s
more likely to be taken as an admission of personal guilt.
OB INTERNATIONALLY
Sources: S. An, D. Park, S. Cho, and B. Berger, “A Cross-Cultural Study of Effective Organizational Crisis Response
Strategy in the United States and South Korea,” International Journal of Strategic Communications 4 (2010), pp. 225–43;
C. Chiu, & M.W. Morris, Y. Hong, and T. Menon, “Motivated Cultural Cognition: The Impact of Implicit Cultural Theo-
ries on Dispositional Attribution Varies as a Function of Need for Closure,” Journal of Personality and Social Psychology 78
(2000), pp. 247–59; T. Menon, M.W. Morris, C. Chiu, and Y. Hong, “Culture and the Construal of Agency: Attribution to
Individual versus Group Dispositions,” Journal of Personality and Social Psychology 76 (1999), pp. 701–17; and Y. Zemba,
M.I. Young, and M.W. Morris, “Blaming Leaders for Organizational Accidents: Proxy Logic in Collective versus Individual-
Agency Cultures,” Organizational Behavior and Human Decision Processes 101 (2006), pp. 36–51.
Final PDF to printer
251C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 251 10/11/17 08:45 AM
FIGURE 8-5 Consensus, Distinctiveness, and Consistency
Behavior is observed
Consensus
Lo
w
H
ig
h
Distinctiveness
Lo
w
H
ig
h
Consistency
Lo
w
H
ig
h
Environmental
factors are to
blame
External AttributionIndividual factors
such as ability,
motivation, or
attitudes
are to blame
Internal Attribution
ever find yourself in this predicament, recent research suggests that by focusing on what you have
to gain by moving on, rather than what you have to lose, will reduce your chances of committing
escalation of commitment.59
S U M M A RY: W H Y D O S O M E E M P LOY E E S L E A R N TO M A K E
B E T T E R D E C I S I O N S T H A N OT H E R S ?
So what explains why some employees learn to make better decisions than others? As shown in
Figure 8-6, answering that question requires understanding how employees learn, what kind of
United Airlines took
10 years to finally abandon
an expensive but faulty
baggage handling system
at Denver International
Airport, illustrating the
power of escalation of
commitment.
©Kevin Moloney/The New York Times/Redux Pictures
Final PDF to printer
252 C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 252 10/11/17 08:45 AM
FIGURE 8-6 Why Do Some Employees Learn to Make Decisions Better Than Others?
Decision-Making Problems
• Limited Information
• Faulty Perceptions
• Faulty Attributions
• Escalation of Commitment
Reinforcement Observation
Goal
Orientation
Programmed
Decision
Accuracy
Nonprogrammed
Decision
Accuracy
Expertise
Explicit
Knowledge
Tacit
Knowledge
knowledge they gain, and how they use that knowledge to make decisions. Employees learn from
a combination of reinforcement and observation, and that learning depends in part on whether
they are learning-oriented or performance-oriented. Some of that learning results in increases
in explicit knowledge, and some of that learning results in increases in tacit knowledge. Those
two forms of knowledge, which combine to form an employee’s expertise, are then used in deci-
sion making. If a given problem has been encountered before, decision making occurs in a more
automatic, programmed fashion. If the problem is new or unfamiliar, nonprogrammed deci-
sion making occurs and, in the best-case scenario, follows the rational decision-making model.
Unfortunately, a number of decision-making problems can hinder the effectiveness of such deci-
sions, including limited information, faulty perceptions, faulty attributions, and escalation of
commitment.
Final PDF to printer
253C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 253 10/11/17 08:45 AM
H O W I M P O R TA N T I S L E A R N I N G ?
Does learning have a significant impact on the two primary outcomes in our integrative model of
OB—does it correlate with job performance and organizational commitment? Figure 8-7 summa-
rizes the research evidence linking learning to job performance and organizational commitment.
The figure reveals that learning does influence job performance. Why? The primary reason is that
learning is moderately correlated with task performance. It’s difficult to fulfill one’s job duties if
the employee doesn’t possess adequate levels of job knowledge. In fact, there are reasons to sug-
gest that the moderate correlation depicted in the figure is actually an underestimate of learning’s
importance. That’s because most of the research linking learning to task performance focuses on
explicit knowledge, which is more practical to measure. It’s difficult to measure tacit knowledge
because of its unspoken nature, but clearly such knowledge is relevant to task performance. Learn-
ing seems less relevant to citizenship behavior and counterproductive behavior however, given
that those behaviors are often less dependent on knowledge and expertise.
Figure 8-7 also reveals that learning is only weakly related to organizational commitment.60
In general, having higher levels of job knowledge is associated with slight increases in emotional
attachment to the firm. It’s true that companies that have a reputation as organizations that value
learning tend to receive higher-quality applicants for jobs.61 However, there’s an important distinc-
tion between organizations that offer learning opportunities and employees who take advantage
of those opportunities to actually gain knowledge. Moreover, it may be that employees with higher
levels of expertise become more highly valued commodities on the job market, thereby reducing
their levels of continuance commitment.
8.6
How does learning affect
job performance and orga-
nizational commitment?
FIGURE 8-7 Effects of Learning on Performance and Commitment
Job
Performance
Learning
Organizational
Commitment
Learning
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
Learning has a moderate positive e�ect on Performance. Employees who gain more
knowledge and skill tend to have higher levels of Task Performance. Not much is known
about the impact of learning on Citizenship Behavior and Counterproductive Behavior.
Learning has a weak positive e�ect on Commitment. Employees who gain more
knowledge and skill tend to have slightly higher levels of A�ective Commitment. Not
much is known about the impact of learning on Continuance Commitment or Normative
Commitment.
Sources: G.M. Alliger, S.I. Tannenbaum, W. Bennett Jr., H. Traver, and A. Shotland, “A Meta-Analysis of the Relations
among Training Criteria,” Personnel Psychology 50 (1997), pp. 341–58; J.A. Colquitt, J.A. LePine, and R.A. Noe, “Toward
an Integrative Theory of Training Motivation: A Meta-Analytic Path Analysis of 20 Years of Research,” Journal of Applied
Psychology 85 (2000), pp. 678–707; and J.P. Meyer, D.J. Stanley, L. Herscovitch, and L. Topolnytsky, “Affective, Continu-
ance, and Normative Commitment to the Organization: A Meta-Analysis of Antecedents, Correlates, and Consequences,”
Journal of Vocational Behavior 61 (2002), pp. 20–52.
Final PDF to printer
254 C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 254 10/11/17 08:45 AM
A P P L I C AT I O N : T R A I N I N G
How can organizations improve learning in an effort to boost employee expertise and, ulti-
mately, improve decision making? One approach is to rely on training, which represents a sys-
tematic effort by organizations to facilitate the learning of job-related knowledge and behavior.
Organizations spent more than $150 billion on training in 2015, or $1,252 per learner. On
average, employees receive 31.5 hours of training per year.62 A full discussion of all the types of
training companies offer is beyond the scope of this section, but suffice it to say that companies
are using many different methods to help their employees acquire explicit and tacit knowledge.
Technological changes are altering the way those methods are delivered, as instructor-led class-
room training has declined over the last decade (although still the majority at 51 percent) while
online self-study programs and other technology-based forms of e-learning involve 41 percent of
learning hours.63
In addition to traditional training experiences, companies are also heavily focused on knowledge
transfer from their older, experienced workers to their younger employees. Some companies are
using variations of behavior modeling training to ensure that employees have the ability to observe
and learn from those in the company with significant amounts of tacit knowledge. For example,
Herman Miller, a furniture manufacturer in Zeeland, Michigan, allows retiring employees to cut
back on their hours during the two years immediately before retirement while maintaining their
full benefits. This is a win–win as the retiree gets to ease into the emotional adjustment that comes
with retirement, but the company gets to have the employees slowly pass on their knowledge and
skills to those underneath them.64 Such sharing of information between workers is not always
easy, especially in competitive or political environments. One recent study suggests that one key to
helping the passing of tacit information between coworkers is trust.65 (See Chapter 7 for a more
detailed description of how to foster trust.) One of the most difficult but most necessary periods
of learning for employees is when they are sent outside their home country to work (referred to
as expatriates). Ernst & Young has around 2,600 employees placed in international locations at
any given time. The company uses “mobility experts,” partners who have been overseas, to help
expatriates learn how to operate and live in these new cultures. The cost of that training is far less
than an unsuccessful employee. Director Troy Dickerson says, “We want to ensure a strong return
on investment for both the individual and Ernst & Young.”66
Another form of knowledge transfer that’s being used by companies more frequently, as
described in our opening example, is social networking. One such example of this type of network-
ing is communities of practice. Communities of practice are groups of employees who work together
and learn from one another by collaborating over an extended period of time.67 Many companies
such as PwC, John Deere, Shell, and Verizon are adopting this newer form of informal social learn-
ing.68 Boeing has developed a formal “communities of excellence” program to distribute knowledge
throughout the company as well as formal and informal mentoring programs throughout their engi-
neering employee groups.69 Communities of practice introduce their own unique complications,
but their potential for transferring knowledge through employees is significant.70
The success of these programs, as well as more traditional types of training, hinges on transfer
of training. Transfer of training occurs when the knowledge, skills, and behaviors used on the
job are maintained by the learner once training ends and generalized to the workplace once the
learner returns to the job.71 Transfer of training can be fostered if organizations create a climate
for transfer—an environment that can support the use of new skills. There are a variety of factors
that can help organizations foster such a climate. The degree to which the trainee’s manager sup-
ports the importance of the newly acquired knowledge and skills and stresses their application
to the job is perhaps the most important factor. Peer support is helpful, because having multiple
trainees learning the same material reduces anxiety and allows the trainees to share concerns and
work through problems. Opportunities to use the learned knowledge are also crucial, because
practice and repetition are key components of learning. Because companies have a huge stake in
increasing and transferring knowledge within their employee base, creating a climate for the trans-
fer of that knowledge is imperative to the success of formal learning systems.
8.7
What steps can orga-
nizations take to foster
learning?
Final PDF to printer
255C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 255 10/11/17 08:45 AM
8.1 Learning is a relatively permanent change in an employee’s knowledge or skill that results
from experience. Decision making refers to the process of generating and choosing from
a set of alternatives to solve a problem. Learning allows employees to make better deci-
sions by making those decisions more quickly and by being able to generate a better set of
alternatives.
8.2 Employees gain both explicit and tacit knowledge as they build expertise. Explicit knowledge
is easily communicated and available to everyone. Tacit knowledge, however, is something
employees can learn only through experience.
8.3 Employees learn new knowledge through reinforcement and observation of oth-
ers. That learning also depends on whether the employees are learning-oriented or
performance-oriented.
8.4 Programmed decisions are decisions that become somewhat automatic because a person’s
knowledge allows him or her to recognize and identify a situation and the course of action
that needs to be taken. Many task-related decisions made by experts are programmed
decisions. Nonprogrammed decisions are made when a problem is new, complex, or not
recognized. Ideally, such decisions are made by following the steps in the rational decision-
making model.
8.5 Employees are less able to translate their learning into accurate decisions when they
struggle with limited information, faulty perceptions, faulty attributions, and escalation of
commitment.
8.6 Learning has a moderate positive relationship with job performance and a weak positive
relationship with organizational commitment.
8.7 Through various forms of training, companies can give employees more knowledge and a
wider array of experiences that they can use to make decisions.
TA K E AWAY S
K E Y T E R M S
• Learning p. 234
• Decision making p. 234
• Expertise p. 234
• Explicit knowledge p. 234
• Tacit knowledge p. 235
• Contingencies of reinforcement p. 237
• Positive reinforcement p. 237
• Negative reinforcement p. 237
• Punishment p. 238
• Extinction p. 238
• Schedules of reinforcement p. 238
• Continuous reinforcement p. 238
• Fixed interval schedule p. 238
• Variable interval schedule p. 238
• Fixed ratio schedule p. 239
• Variable ratio schedule p. 239
• Social learning theory p. 239
• Behavioral modeling p. 239
• Learning orientation p. 241
• Performance-prove orientation p. 241
• Performance-avoid orientation p. 241
• Programmed decision p. 241
• Intuition p. 242
• Crisis situation p. 244
• Nonprogrammed decision p. 244
• Rational decision-making model p. 244
• Bounded rationality p. 246
• Satisficing p. 246
• Selective perception p. 247
• Projection bias p. 247
• Social identity theory p. 247
• Stereotypes p. 247
• Heuristics p. 247
• Availability bias p. 247
• Fundamental attribution error p. 249
• Self-serving bias p. 249
• Consensus p. 249
• Distinctiveness p. 249
Final PDF to printer
256 C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 256 10/11/17 08:45 AM
8.1 In your current or past workplaces, what types of tacit knowledge did experienced workers
possess? What did this knowledge allow them to do?
8.2 Companies rely on employees with substantial amounts of tacit knowledge. Why do compa-
nies struggle when these employees leave the organization unexpectedly? What can compa-
nies do to help ensure that they retain tacit knowledge?
8.3 What does the term “expert” mean to you? What exactly do experts do that novices don’t?
8.4 Do you consider yourself to be a “rational” decision maker? For what types of decisions are
you determined to be the most rational? What types of decisions are likely to cause you to
behave irrationally?
8.5 Given your background, which of the decision-making biases listed in the chapter do you
most struggle with? What could you do to overcome those biases to make more accurate
decisions?
D I S C U S S I O N Q U E S T I O N S
One of the biggest challenges Bridgewater faces is the succession plan for the eventual departure
of on-again, off-again CEO Ray Dalio. In March 2017, the Apple executive that was hired to
potentially take over left after only 10 months on the job with Dalio posting online that “We
mutually agree that he is not a cultural fit for Bridgewater.” It’s clear that Bridgewater’s culture
of transparency, decision making, and fostered conflict and disagreement is not for everyone.
Dalio is now halfway through what he has termed a 10-year succession plan and there appears
to be no clear answer as to who is going to carry on the torch of the company’s “principles” and
“radical transparency” (although Dalio has stated that he plans to remain at the company as a
professional investor until he dies).
Dalio’s solution could very well be a form of artificial intelligence—a software system
designed to automate management decisions that has been known within the company as
the “Book of the Future” and most recently by its formal name: PriOS (Principles Operating
System). PriOS, once complete, is designed to automate management within the firm based on
its guiding 210 principles. How might this work? Well, first the software needs data about the
decisions made in the firm and the people that make them, which it will get from numerous
sources such as from the battery of personality and cognitive tests that every employee in the
company takes. In addition, employees rate one another’s performance via an iPad application
known as the “Dot Collector” on a daily basis. Information is also gathered via snap polls taken
in meetings and staff take daily multiple-choice quizzes on management issues that occur within
the company (correct and incorrect answers are logged over time).
These inputs are then processed by the operating system against Dalio’s Principles and ide-
ally this results in direct information on whom to hire, fire, or employ in a specific situation,
and even to provide detailed directions for employees on day-to-day tasks. Recent former
employees have felt that working at Bridgewater has been like a giant experiment in human
decision making. All employees have their own “baseball card” that anyone can see, which
C A S E : B R I D G E WAT E R A S S O C I AT E S
• Consistency p. 249
• Escalation of commitment p. 249
• Training p. 254
• Knowledge transfer p. 254
• Behavior modeling training p. 254
• Communities of practice p. 254
• Transfer of training p. 254
• Climate for transfer p. 254
Final PDF to printer
257C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 257 10/11/17 08:45 AM
identifies their strengths and weaknesses on certain dimensions. Dalio plans for nearly
75 percent of the management decisions made at Bridgewater to be determined by PriOS
within the next five years. In essence, the software will potentially be the embodiment of Ray
Dalio after he is gone.
8.1 How would you like to work for a company whose management decisions are primarily
made by a computer (potentially in the image of its founder)?
8.2 Could a different firm without such detailed, strong “principles” do the same thing as
Bridgewater?
8.3 Do you see the creation of PriOS as a potential competitive advantage for Bridgewater or as
something that won’t survive long term after Dalio is gone?
Sources: K. Burton and S. Kishan, “Behind the Bridgewater Shakeup: Ray Dalio’s Unusual Culture,” Bloomberg.com,
March 1, 2017; J. Cassidy, “Mastering the Machine,” The New Yorker, July 25, 2011; Bridgewater Company websites:
www.bridgewater.com and www.principles.com [accessed March 2017]; R. Copeland and B. Hope, “The World’s Largest
Hedge Fund Is Building an Algorithmic Model from Its Employee’s Brains,” The Wall Street Journal, December 22, 2016;
A. Stevenson and M. Goldstein, “At World’s Largest Hedge Fund, Sex, Fear, and Video Surveillance,” The New York Times,
July 27, 2016, p. A1.
E X E R C I S E : D E C I S I O N – M A K I N G B I A S
The purpose of this exercise is to illustrate how decision making can be influenced by decision
heuristics, availability bias, and escalation of commitment. The exercise has the following steps:
8.1 Answer each of the following problems.
A. A certain town is served by two hospitals. In the larger hospital, about 45 babies are
born each day, and in the smaller hospital, about 15 babies are born each day. Although
the overall proportion of boys is about 50 percent, the actual proportion at either hospi-
tal may be greater or less than 50 percent on any given day. At the end of a year, which
hospital will have the greater number of days on which more than 60 percent of the
babies born were boys?
a. The large hospital
b. The small hospital
c. Neither—the number of days will be about the same (within 5 percent of each other)
B. Linda is 31 years of age, single, outspoken, and very bright. She majored in philosophy
in college. As a student, she was deeply concerned with discrimination and other social
issues and participated in antinuclear demonstrations. Which statement is more likely?
a. Linda is a bank teller.
b. Linda is a bank teller and active in the feminist movement.
C. A cab was involved in a hit-and-run accident. Two cab companies serve the city: the
Green, which operates 85 percent of the cabs, and the Blue, which operates the remain-
ing 15 percent. A witness identifies the hit-and-run cab as Blue. When the court tests the
reliability of the witness under circumstances similar to those on the night of the acci-
dent, he correctly identifies the color of the cab 80 percent of the time and misidentifies
it the other 20 percent. What’s the probability that the cab involved in the accident was
Blue, as the witness stated?
D. Imagine that you face this pair of concurrent decisions. Examine these decisions and
then indicate which choices you prefer.
Decision I: Choose between:
a. A sure gain of $240 and
b. A 25 percent chance of winning $1,000 and a 75 percent chance of winning nothing
Decision II: Choose between:
a. A sure loss of $750 and
b. A 75 percent chance of losing $1,000 and a 25 percent chance of losing nothing
Final PDF to printer
258 C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 258 10/11/17 08:45 AM
Decision III: Choose between:
a. A sure loss of $3,000 and
b. An 80 percent chance of losing $4,000 and a 20 percent chance of losing nothing
E. You’ve decided to see a Broadway play and have bought a $150 ticket. As you enter the
theater, you realize you’ve lost your ticket. You can’t remember the seat number, so you
can’t prove to the management that you bought a ticket. Would you spend $150 for a
new ticket?
F. You’ve reserved a seat for a Broadway play, for which the ticket price is $150. As you
enter the theater to buy your ticket, you discover you’ve lost $150 from your pocket.
Would you still buy the ticket? (Assume you have enough cash left to do so.)
G. Imagine you have operable lung cancer and must choose between two treatments:
surgery and radiation. Of 100 people having surgery, 10 die during the operation,
32 (including those original 10) are dead after 1 year, and 66 are dead after 5 years.
Of 100 people having radiation therapy, none dies during treatment, 23 are dead after
1 year, and 78 after 5 years. Which treatment would you prefer?
8.2 Your instructor will give you the correct answer to each problem. Class discussion, whether
in groups or as a class, should focus on the following questions: How accurate were the
decisions you reached? What decision-making problems were evident in the decisions you
reached? Consider especially where decision heuristics, availability, and escalation of com-
mitment may have influenced your decisions. How could you improve your decision making
to make it more accurate?72
8.1 Weiss, H.M. “Learning
Theory and Industrial
and Organizational
Psychology.” In Hand-
book of Industrial and
Organizational Psychol-
ogy, ed. M.D. Dunnette
and L.M. Hough. Palo
Alto, CA: Consulting
Psychologists Press,
1990, pp. 75–169.
8.2 Tai, B., and N.R. Lock-
wood. “Organizational
Entry: Onboarding,
Orientation, and
Socialization.” SHRM
Research Paper (n.d.),
http://www.shrm.org.
8.3 Source: Buford, B.
Heat. New York:
Knopf, 2006, pp.49–50.
8.4 Ericsson, K.A. “An
Introduction to Cam-
bridge Handbook of
Expertise and Expert
Performance: Its
Development, Organi-
zation, and Content.”
In The Cambridge
Handbook of Expertise
and Expert Performance,
ed. K.A. Ericsson;
N. Charness; P.J.
Feltovich; and R.R.
Hoffman. New York:
Cambridge University
Press, 2006, pp. 3–19.
8.5 Ericsson, K.A., and
A.C. Lehmann.
“Experts and Excep-
tional Performance:
Evidence of Maximal
Adaptation to Task
Constraints.” Annual
Review of Psychology 47
(1996), pp. 273–305.
8.6 Brockmann, E.N., and
W.P. Anthony. “Tacit
Knowledge and Strate-
gic Decision Making.”
Group & Organizational
Management 27,
December 2002,
pp. 436–55.
8.7 Wagner, R.K., and R.J.
Sternberg. “Practi-
cal Intelligence in
Real-World Pursuits:
The Role of Tacit
Knowledge.” Journal of
Personality and Social
Psychology 4 (1985),
pp. 436–58.
8.8 Wah, L. “Making
Knowledge Stick.”
Management Review 88
(1999), pp. 24–33.
8.9 Eucker, T.R. “Under-
standing the Impact of
Tacit Knowledge Loss.”
Knowledge Management
Review, March 2007,
pp. 10–13.
8.10 McAdam, R.; B.
Mason; and J.
McCrory. “Explor-
ing the Dichotomies
E N D N OT E S
Final PDF to printer
259C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 259 10/11/17 08:45 AM
Within the Tacit
Knowledge Literature:
Towards a Process of
Tacit Knowing in Orga-
nizations.” Journal of
Knowledge Management
11 (2007), pp. 43–59.
8.11 Lawson, C., and E.
Lorenzi. “Collective
Learning, Tacit Knowl-
edge, and Regional
Innovative Capacity.”
Regional Studies 21
(1999), pp. 487–513.
8.12 Bou-Llusar, J.C., and
M. Segarra-Ciprés.
“Strategic Knowledge
Transfer and Its
Implications for Com-
petitive Advantage: An
Integrative Conceptual
Framework.” Journal of
Knowledge Management
10 (2006), pp. 100–12;
Ihrig, M., and I.
MacMillan. “Managing
Your Mission-Critical
Knowledge.” Harvard
Business Review 93
(2015), pp. 80–87;
Nonaka, I. “The
Knowledge-Creating
Company.” Harvard
Business Review 69
(1991), pp. 96–104;
and Nonaka, I. “A
Dynamic Theory
of Organizational
Knowledge Creation.”
Organizational Science
5 (1994), pp. 14–37.
8.13 Luthans, F., and R.
Kreitner. Organizational
Behavior Modification
and Beyond. Glenview,
IL: Scott, Foresman,
1985.
8.14 Latham, G.P., and V.L.
Huber. “Schedules of
Reinforcement: Les-
sons from the Past and
Issues for Future.” Jour-
nal of Organizational
Behavior Management
13 (1992), pp. 125–49.
8.15 Pinder, C. Work Motiva-
tion in Organizational
Behavior. New York:
Psychology Press, 2008.
8.16 Luthans and Kreitner,
Organizational Behavior
Modification.
8.17 Pinder, Work
Motivation.
8.18 Alter, A. Irresistable:
The Rise of Addictive
Technology and the
Business of Keeping Us
Hooked. New York:
Penguin, 2017.
8.19 Pinder, Work
Motivation.
8.20 Bandura, A. Social
Foundations of Thought
and Action: A Social
Cognitive Theory.
Englewood Cliffs, NJ:
Prentice Hall, 1986.
8.21 Weiss, “Learning
Theory.”
8.22 Pescuric, A., and W.C.
Byham. “The New
Look of Behavior
Modeling.” Training &
Development, July 1996,
pp. 24–30.
8.23 Trees, L. “Why Your
KM strategy Should
Include Mentoring.”
KM World, September
2016, pp. 5–7.
8.24 Mulcahy, A. “How I
Did It: Xerox’s Former
CEO on Why Succes-
sion Shouldn’t Be a
Horse Race.” Harvard
Business Review, Octo-
ber 2010, pp. 47–51;
and Gelles, D.
“Burns to Replace
Mulcahy at Xerox.”
Financial Times, May
22, 2009, p. 16.
8.25 Source: Eliison, S.
“Lowell McAdam:
Seidenberg’s Air’
Apparent.” Fortune,
October 20, 2010.
8.26 Kish-Gephart, J.J.; D.A.
Harrison; L.K. Treviño;
and L. Klebe. “Bad
Apples, Bad Cases,
and Bad Barrels: Meta-
Analytic Evidence about
Sources of Unethical
Decisions at Work.” Jour-
nal of Applied Psychology
95 (2010), pp. 1–31.
8.27 Sims, R.R., and J.
Brinkmann. “Leaders
as Moral Role Models:
The Case of John
Gutfreund at Salomon
Brothers.” Journal
of Business Ethics 35
(2002), pp. 327–40.
8.28 Biron, M., and P.
Bamberger. “Aversive
Workplace Conditions
and Absenteeism:
Taking Referent Group
Norms and Supervisor
Account into Account.”
Journal of Applied
Psychology 97 (2012),
pp. 901–12; and Mitch-
ell, M.S., and M.L.
Ambrose. “Employee’s
Behavioral Reactions to
Supervisor Aggression:
An Examination of
Individual and Situa-
tional Factors.” Journal
of Applied Psychology 97
(2012), pp. 1148–70.
8.29 VandeWalle, D. “Devel-
opment and Validation
of a Work Domain
Goal Orientation
Instrument.” Educa-
tional and Psychological
Measurement 8 (1997),
pp. 995–1015.
8.30 Payne, S.C.; S.
Youngcourt; and J.M.
Final PDF to printer
260 C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 260 10/11/17 08:45 AM
Beaubien. “A Meta-
Analytic Examination
of the Goal Orientation
Nomological Net.”
Journal of Applied
Psychology 92 (2007),
pp. 128–50.
8.31 Ibid.
8.32 Cannon-Bowers, J.A.;
L. Rhodenizer; E.
Salas; and C. Bowers.
“A Framework for
Understanding Pre-
Practice Conditions
and Their Impact on
Learning.” Personnel
Psychology 51 (1998),
pp. 291–320.
8.33 Mesmer-Magnus, J.,
and C. Viswesvaran.
“The Role of Pre-
Training Interventions
in Learning: A Meta-
Analysis and Integra-
tive Review.” Human
Resource Management
Review 20 (2010),
pp. 261–82.
8.34 Dane, E., and M.G.
Pratt. “Exploring
Intuition and Its Role
in Managerial Decision
Making.” Academy of
Management Review
32 (2007), pp. 33–54;
and Hayashi, A.M.
“When to Trust Your
Gut.” Harvard Business
Review, February 2001,
pp. 59–65.
8.35 Hogarth, R.M. “Intu-
ition: A Challenge
for Psychological
Research on Decision
Making.” Psychological
Inquiry 21 (2010),
pp. 338–53.
8.36 March, J.G. A Primer
on Decision Making.
New York: The Free
Press, 1994.
8.37 Dane, E.; K.W.
Rockmann; and M.G.
Pratt. “When Should I
Trust My Gut? Linking
Domain Expertise to
Intuitive Decision-
Making Effectiveness.”
Organizational Behavior
and Human Decision
Processes 119 (2012),
pp. 187–94.
8.38 Seeger, M.W.; T.L.
Sellnow; and R.R.
Ulmer. “Communica-
tion, Organization and
Crisis.” Communication
Yearbook 21 (1998),
pp. 231–75.
8.39 Weick, K.E., and K.M.
Sutcliffe. Managing the
Unexpected: Resilient
Performance in an Age
of Uncertainty, 2nd ed.
San Francisco: Jossey-
Bass, 2007.
8.40 Klein, G. Sources of
Power. Cambridge, MA:
MIT Press, 1999.
8.41 Weick, K.E. “Manage-
rial Thought in the
Context of Action.” In
The Executive Mind,
ed. S. Srivasta. San
Francisco: Jossey-Bass,
1983, pp. 221–42;
Weick and Sutcliffe,
Managing the Unex-
pected; and Klein,
G. The Power of
Intuition. New York:
Currency Doubleday,
2003.
8.42 Simon, H.A. “A
Behavioral Model of
Rational Choice.”
Quarterly Journal of
Economics 69 (1955),
pp. 99–118.
8.43 Simon, H.A. “Rational
Decision Making
in Organizations.”
American Economic
Review 69 (1979),
pp. 493–513.
8.44 March, J.G., and H.A.
Simon. Organizations.
New York: Wiley,
1958.
8.45 Ibid.
8.46 Hogg, M.A., and D.J.
Terry. “Social Identity
and Self-Categorization
Process in Organiza-
tional Contexts.” Acad-
emy of Management
Review 25, January
2000, pp. 121–40.
8.47 Judd, C.M., and B.
Park. “Definition and
Assessment of Accu-
racy in Social
Stereotypes.” Psycho-
logical Review 100,
January 1993, pp.
109–28.
8.48 Ashforth, B.E., and F.
Mael. “Social Identity
Theory and the Orga-
nization.” Academy of
Management Review 14
(1989), pp. 20–39; and
Howard, J.A. “Social
Psychology of Identi-
ties.” Annual Review of
Sociology 26 (2000),
pp. 367–93.
8.49 McGirt, E. “Google
Searches Its Soul.”
Fortune, February 1,
2017, pp. 48–56; and
Society for Human
Resource Management.
“Diversity Training,”
2014, http://www.shrm
.org/diversity.
8.50 Kahneman, D.; P.
Slovic; and A. Tversky,
eds. Judgment under
Uncertainty: Heuristics
and Biases. Cambridge,
Final PDF to printer
261C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 261 10/11/17 08:45 AM
UK: Cambridge
University Press, 1982.
8.51 Source: Kahneman,
D., and A. Tversky.
“On the Psychol-
ogy of Prediction.”
Psychological Review
80(1973),pp.237–51.
8.52 Smerd, J. “In Worker’s
Heads.” Workforce Man-
agement, June 22, 2009,
pp. 34–39.
8.53 Ross, L. “The Intuitive
Psychologist and His
Shortcomings: Distor-
tions in the Attribution
Process.” In Advances
in Experimental Social
Psychology, ed. L.
Berkowitz. New York:
Academic Press, 1977,
pp. 173–220. See also
Jones, E.E., and V.A.
Harris. “The Attribu-
tion of Attitudes.”
Journal of Experimental
Social Psychology 3
(1967), pp. 1–24.
8.54 Kelley, H.H. “The
Processes of Casual
Attribution.” American
Psychologist 28 (1973),
pp. 107–28; and Kelley,
H.H. “Attribution in
Social Interaction.” In
Attribution: Perceiving the
Causes of Behavior, ed.
E. Jones. Morristown,
NJ: General Learning
Press, 1972.
8.55 Staw, B.M., and J. Ross.
“Behavior in Escalation
Situations: Antecedents,
Prototypes, and Solu-
tions.” In Research
in Organizational
Behavior, Vol. 9, ed. L.L.
Cummings and B.M.
Staw. Greenwich, CT:
JAI Press, 1987, pp.
39–78; and Staw, B.M.
“Knee-Deep in the Big
Muddy: A Study of
Escalating Commitment
to a Chosen Course of
Action.” Organizational
Behavior and Human
Performance 16 (1976),
pp. 27–44.
8.56 Brockner, J. “The Esca-
lation of Commitment
to a Failing Course
of Action: Toward
Theoretical Progress.”
Academy of Manage-
ment Review 17 (1992),
pp. 39–61; and Staw,
B.M. “The Escalation
of Commitment: An
Update and Appraisal.”
In Organizational
Decision Making, ed.
Z. Shapira. New York:
Cambridge University
Press, 1997.
8.57 Conlon, D.E., and H.
Garland. “The Role
of Project Comple-
tion Information in
Resource Allocation
Decisions.” Academy
of Management
Journal 36 (1993),
pp. 402–13; and Moon,
H. “Looking Forward
and Looking Back:
Integrating Completion
and Sunk-Cost Effects
within an Escalation of
Commitment Progress
Decision.” Journal of
Applied Psychology 86
(2001), pp. 104–13.
8.58 Johnson, K. “Denver
Airport to Mangle Last
Bag.” The New York
Times, August 27, 2005.
8.59 Molden, D.C., and
C.M. Hui. “Promoting
De-Escalation of Com-
mitment: A Regulatory-
Focus Perspective
on Sunk Costs.”
Psychological Science 22
(2011), pp. 8–12.
8.60 Alliger, G.M.; S.I. Tan-
nenbaum; W. Bennett
Jr.; H. Traver; and A.
Shotland. “A Meta-
Analysis of the Relations
among Training Crite-
ria.” Personnel Psychology
50 (1997), pp. 341–58;
Colquitt, J.A.; J.A.
LePine; and R.A. Noe.
“Toward an Integrative
Theory of Training Moti-
vation: A Meta-Analytic
Path Analysis of 20
Years of Research.” Jour-
nal of Applied Psychology
85 (2000), pp. 678–707;
and Meyer, J.P.; D.J.
Stanley; L. Herscovitch;
and L. Topolnytsky.
“Affective, Continuance,
and Normative Commit-
ment to the Organiza-
tion: A Meta-Analysis of
Antecedents, Correlates,
and Consequences.”
Journal of Vocational
Behavior 61 (2002),
pp. 20–52.
8.61 Averbrook, J. “Con-
necting CLOs with the
Recruiting Process.”
Chief Learning Officer 4
(2005), pp. 24–27.
8.62 Ho, M. “2016 State of
the Industry Report:
Investment in Learn-
ing Increases for 4th
Straight Year.” TD:
Talent Development,
November 2016,
pp. 30–35.
8.63 Ibid.
8.64 Milligan, S. “Wisdom
of the Ages.” HRMaga-
zine, November 2014,
pp. 22–27.
8.65 Holste, J.S., and D.
Fields. “Trust and Tacit
Final PDF to printer
262 C H A P T E R 8 Learning and Decision Making
coL27660_ch08_232-262.indd 262 10/11/17 08:45 AM
Knowledge Sharing
and Use.” Journal of
Knowledge Management
14 (2010), pp. 128–40.
8.66 Source: Ladika, S.
“Shipping and
Handling: Picking
the Right People to
Head Overseas Is
Paramount.” Workforce
Management, March 1.
8.67 Retna, K.S., and P.T.
Ng. “Communities of
Practice: Dynamics and
Success Factors.” Lead-
ership and Organization
Development Journal
32 (2011), pp. 41–59;
and Sauve, E. “Informal
Knowledge Transfer.”
T + D 61 (2007),
pp. 22–24.
8.68 Overton, L. “Learning
Innovators.” E.learning
Age, July/August 2014,
pp. 12–14; Ligdas, N.
“Using a Wiki Portal to
Support Organizational
Excellence at Shell.”
Knowledge Management
Review, October 2009,
p. 1; and Allan, B.,
and D. Lewis. “Virtual
Learning Communities
as a Vehicle for
Workforce Develop-
ment: A Case Study.”
Journal of Workplace
Learning 18 (2006),
pp. 367–83.
8.69 Trees, L. “Mentoring
as a Springboard for
Networking and Col-
laboration.” KMWorld,
November–December
2016, pp. 280–83.
8.70 Pyrko, I., V. Dorfler,
and C. Eden. “Thinking
Together: What Makes
Communities of Prac-
tice Work?” Human
Relations 70 (2016),
pp. 389–409; and Noe,
R.A. Employee Training
and Development.
New York: Irwin/
McGraw-Hill, 1999.
8.71 Tracey, J.B.; S.I. Tan-
nenbaum; and M.J.
Kavanaugh. “Applying
Trained Skills on the
Job: The Importance
of the Work Environ-
ment.” Journal of
Applied Psychology 80
(1995), pp. 239–52.
8.72 Ivancevich, J.; R.
Konopaske; and
M. Matteson. Organi-
zational Behavior and
Management, 7th ed.
New York: McGraw-
Hill, 2005. Reprinted
with permission of The
McGraw-Hill Com-
panies. The original
exercises are based on
the following sources:
(1) Tversky, A., and D.
Kahneman. “Rational
Choice and the Framing
of Decisions.” Journal
of Business 59 (1986), pp.
251–78; (2) Tversky, A.,
and D. Kahneman.
“The Framing of
Decisions and the Psy-
chology of Choice.”
Science 211 (1981),
pp. 453–58; (3) Tversky,
A., and D. Kahne-
man. “Extensional vs.
Intuitive Reasoning: The
Conjunction Fallacy in
Probability Judgment.”
Psychological Review 90
(1983), pp. 293–315;
and (4) McKean, K.
“Decisions, Decisions.”
Discovery Magazine,
June 1985.
Final PDF to printer
coL27660_ch09_263-303.indd 263 10/11/17 08:46 AM
CHAPTER 9
Personality and Cultural Values
CHAPTER 10
Ability
INDIVIDUAL
CHARACTERISTICS
3
P A R T
Final PDF to printer
coL27660_ch09_263-303.indd 264 10/11/17 08:46 AM
9
LEARNING GOALS
9.1 What is personality? What are cultural values?
9.2 What are the “Big Five”?
9.3 Is personality driven by nature or by nurture?
9.4 What taxonomies can be used to describe personality, other than the Big Five?
9.5 What taxonomies can be used to describe cultural values?
9.6 How does personality affect job performance and organizational commitment?
9.7 Are personality tests useful tools for organizational hiring?
After reading this chapter, you should be able to answer the following questions:
Personality and Cultural
Values
INDIVIDUAL
OUTCOMES
INDIVIDUAL
MECHANISMS
INDIVIDUAL
CHARACTERISTICS
ORGANIZATIONAL
MECHANISMS
Organizational
Culture
Organizational
Structure
Teams:
Processes &
Communication
Motivation
Trust, Justice,
& Ethics
Teams:
Characteristics &
Diversity
Learning &
Decision Making
Ability
Personality &
Cultural Values
Stress
Leadership:
Power &
Negotiation
Job
Satisfaction
Leadership:
Styles &
Behaviors
Organizational
Commitment
Job
Performance
GROUP
MECHANISMS
Final PDF to printer
coL27660_ch09_263-303.indd 265 10/11/17 08:46 AM
O
ne thousand seven hundred and twenty-eight play-
ers. Fifty-two managers. That’s how many people
represented the Chicago Cubs between 1908—
their prior World Series title—and 2016—when their long
drought ended. That 1908 team had played in the era of
Mark Twain, Florence Nightingale, and the Ottoman Empire.
How did the franchise break through after all that time?
Much of the credit can be given to a new owner, a new pres-
ident of baseball operations, and a focus on personality.
The new owner is Tom Ricketts, the director of TD Ameri-
trade Holding Corporation. The new president of baseball
operations is Theo Epstein, previously the general manager
of the Boston Red Sox, and assembler of a two-time World
Series champion in that city. Ricketts had been impressed
with Epstein’s personality as they discussed a position with
the Cubs. “He was the kind of person who treats people
with respect,” Ricketts noted. “He was honest and candid
about his successes and failures.” Epstein is also enor-
mously curious, a trait fueled by a family rule where every
minute watching baseball had to be matched by time read-
ing books. “A double header was a lot of reading,” recalled
Epstein. The Cubs manager, Joe Maddon, offered his own
take on Epstein’s personality: “He’s brilliant, he’s sabermetri-
cally inclined, he’s old school, he understands old-school
scouting techniques, he understands the game, but of all
the guys I’ve met, he’s more empathetic than all of them. He
understands people. And he feels what they feel.” Much like
how books fueled his curiosity, Epstein attributes that empa-
thy to his family and his upbringing. “Maybe it’s part of being
a twin. I’m a twin. My mom’s a twin. My grandfather’s a twin.”
Regardless of where his traits came from, Epstein went
about retooling the Cubs with his own emphasis on per-
sonality. He wanted players with the right “makeup”—who
would create the proper “ethos” in the clubhouse. Some
of that emphasis came from the failures of his most recent
Red Sox clubs, but it was also a simple evolution of his own
views on managing people. The word that he most often
uses is “character”—a sense that players will work hard,
do the right thing, fit into the team concept, and overcome
adversity. “We are not going to compromise character for
talent,” Epstein vowed. “We’re the Cubs. We’re going to
have both. Talent and character.”
CHICAGO CUBS
©Jonathan Daniel/Getty Images
Final PDF to printer
266 C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 266 10/11/17 08:46 AM
P E R S O N A L I T Y A N D C U LT U R A L VA LU E S
As the opening illustrates, a company can gain from paying close attention to the personal-
ity of its employees when making decisions about hiring and development. Personality refers
to the structures and propensities inside people that explain their characteristic patterns of
thought, emotion, and behavior.1 Personality creates people’s social reputations—the way they
are perceived by friends, family, coworkers, and supervisors.2 In this way, personality captures
what people are like. That’s in contrast to ability, the subject of Chapter 10, which captures
what people can do. Although we sometimes describe people as having “a good personality,”
personality is actually a collection of multiple traits. Traits are defined as recurring regulari-
ties or trends in people’s responses to their environment.3 Adjectives such as “responsible,”
“easygoing,” “polite,” and “reserved” are examples of traits that can be used to summarize
someone’s personality.
As we’ll describe later, personality traits are a function of both your genes and your environ-
ment. One important piece of the environmental part of that equation is the culture in which you
were raised. Cultural values are defined as shared beliefs about desirable end states or modes of
conduct in a given culture.4 You can think of cultural values as capturing what cultures are like.
Adjectives such as “traditional,” “informal,” “risk averse,” or “assertive” are all examples of values
that can be used to summarize a nation’s culture. Cultural values can influence the development
of people’s personality traits, as well as how those traits are expressed in daily life. In this way, a
responsible person in the United States may act somewhat differently than a responsible person
in China, just as an easygoing person in France may act somewhat differently than an easygoing
person in Indonesia.
H O W C A N W E D E S C R I B E W H AT
E M P LOY E E S A R E L I K E ?
We can use personality traits and cultural values to describe what employees are like. For example,
how would you describe your first college roommate to one of your classmates? You’d start off
using certain adjectives—maybe the roommate was funny and outgoing or maybe frugal and orga-
nized. Of course, it would take more than a few adjectives to describe your roommate fully. You
could probably go on listing traits for several minutes, maybe even coming up with 100 traits or
more. Although 100 traits may sound like a lot, personality researchers note that the third edition
of Webster’s Unabridged Dictionary contained 1,710 adjectives that can be used to describe some-
one’s traits!5 Was your roommate abrasive, adulterous, agitable, alarmable, antisocial, arbitrative,
arrogant, asocial, audacious, aweless, and awkward? We hope not!
T H E B I G F I V E TA XO N O M Y
With 1,710 adjectives, you might be worrying about the length of this chapter (or the difficulty
of your next exam!). Fortunately, it turns out that most adjectives are variations of five broad
dimensions or “factors” that can be used to summarize our personalities.6 Those five personality
dimensions include conscientiousness, agreeableness, neuroticism, openness to experience, and
extraversion. Collectively, these dimensions have been dubbed the Big Five.7 Figure 9-1 lists the
traits that can be found within each of the Big Five dimensions. We acknowledge that it can be
hard to remember the particular labels for the Big Five dimensions, and we wish there was some
acronym that could make the process easier. . . .
Would you like to see what your Big Five profile looks like? Our OB Assessments feature will
show you where you stand on each of the five dimensions. After you’ve gotten a feel for your
personality profile, you might be wondering about some of the following questions: How does
personality develop? Why do people have the traits that they possess? Will those traits change
9.1
What is personality? What
are cultural values?
9.2
What are the “Big Five”?
Final PDF to printer
267C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 267 10/11/17 08:46 AM
over time? All of these questions are variations on the “nature vs. nurture” debate: Is personality
a function of our genes, or is it something that we develop as a function of our experiences and
environment? As you might guess, it’s sometimes difficult to tease apart the impact of nature and
nurture on personality. Let’s assume for a moment that you’re especially extraverted and so are
your parents. Does this mean you’ve inherited their “extraversion gene”? Or does it mean that you
observed and copied their extraverted behavior during your childhood (and were rewarded with
praise for doing so)? It’s impossible to know, because the effects of nature and nurture are acting
in combination in this example.
One method of separating nature and nurture effects is to study identical twins who’ve been
adopted by different sets of parents at birth. For example, the University of Minnesota has been
conducting studies of pairs of identical twins reared apart for several decades.8 Such studies find,
for example, that extraversion scores tend to be significantly correlated across pairs of identical
twins.9 Such findings can clearly be attributed to “nature,” because identical twins share 100 percent
of their genetic material, but cannot be explained by “nurture,” because the twins were raised in
different environments. A review of several different twin studies concludes that genes have a
significant impact on people’s Big Five profile. More specifically, 49 percent of the variation in
extraversion is accounted for by genetic differences.10 The genetic impact is somewhat smaller for
the rest of the Big Five: 45 percent for openness, 41 percent for neuroticism, 38 percent for con-
scientiousness, and 35 percent for agreeableness.
Another method of examining the genetic basis of personality is to examine changes in per-
sonality traits over time. Longitudinal studies require participants to complete personality assess-
ments at multiple time periods, often separated by several years. If personality has a strong genetic
component, then people’s Big Five profiles at, say, age 21 should be very similar to their profiles at
Sources: G. Saucier, “Mini-Markers: A Brief Version of Goldberg’s Unipolar Big-Five Markers,” Journal of Personality
Assessment 63 (1994), pp. 506–16; L.R. Goldberg, “The Development of Markers for the Big-Five Factor Structure,”
Psychological Assessment 4 (1992), pp. 26–42; R.R. McCrae and P.T. Costa Jr., “Validation of the Five-Factor Model of Per-
sonality across Instruments and Observers,” Journal of Personality and Social Psychology 52 (1987), pp. 81–90; and C.M.
Gill and G.P. Hodgkinson, “Development and Validation of the Five-Factor Model Questionnaire (FFMQ): An Adjectival-
Based Personality Inventory for Use in Occupational Settings,” Personnel Psychology 60 (2007), pp. 731–66.
FIGURE 9-1 Trait Adjectives Associated with the Big Five
• Dependable
• Organized
• Reliable
• Ambitious
• Hardworking
• Persevering
• Kind
• Cooperative
• Sympathetic
• Helpful
• Courteous
• Warm
• Nervous
• Moody
• Emotional
• Insecure
• Jealous
• Unstable
• Curious
• Imaginative
• Creative
• Complex
• Refined
• Sophisticated
• Talkative
• Sociable
• Passionate
• Assertive
• Bold
• Dominant
• Quiet
• Shy
• Inhibited
• Bashful
• Reserved
• Submissive
• Uninquisitive
• Conventional
• Conforming
• Simple
• Unartistic
• Traditional
• Calm
• Steady
• Relaxed
• At ease
• Secure
• Contented
• Critical
• Antagonistic
• Callous
• Selfish
• Rude
• Cold
• Careless
• Sloppy
• Ine�cient
• Negligent
• Lazy
• Irresponsible
NOT
C A N O E
NOT NOT NOT NOT
Conscientiousness Agreeableness Neuroticism Openness Extraversion
9.3
Is personality driven by
nature or by nurture?
Final PDF to printer
268 C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 268 10/11/17 08:46 AM
OB ASSESSMENTS
THE BIG FIVE
What does your personality profile look like? This assessment is designed to measure the five
major dimensions of personality: conscientiousness (C), agreeableness (A), neuroticism (N),
openness to experience (O), and extraversion (E). Listed below are phrases describing people’s
behaviors. Please write a number next to each statement that indicates the extent to which it
accurately describes you. Answer each question using the response scale provided. Then subtract
your answers to the boldfaced questions from 6, with the difference being your new answer for
those questions. For example, if your original answer for question 6 was “2,” your new answer is
“4” (6–2). (Instructors: Assessments on locus of control, collectivism, and power distance can
be found in the PowerPoints in the Connect Library’s Instructor Resources and in the Connect
assignments for this chapter.)
1
VERY
INACCURATE
2
MODERATELY
INACCURATE
3
NEITHER
INACCURATE
NOR ACCURATE
4
MODERATELY
ACCURATE
5
VERY ACCURATE
1. I am the life of the party.
2. I sympathize with others’ feelings.
3. I get chores done right away.
4. I have frequent mood swings.
5. I have a vivid imagination.
6. I don’t talk a lot.
7. I am not interested in other people’s problems.
8. I often forget to put things back in their proper place.
9. I am relaxed most of the time.
10. I am not interested in abstract ideas.
11. I talk to a lot of different people at parties.
12. I feel others’ emotions.
13. I like order.
14. I get upset easily.
15. I have difficulty understanding abstract ideas.
16. I keep in the background.
17. I am not really interested in others.
18. I make a mess of things.
19. I seldom feel blue.
20. I do not have a good imagination.
Final PDF to printer
269C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 269 10/11/17 08:46 AM
SCORING AND INTERPRETATION
Conscientiousness: Sum up items 3, 8, 13, and 18. _______
Agreeableness: Sum up items 2, 7, 12, and 17. _______
Neuroticism: Sum up items 4, 9, 14, and 19._______
Openness to Experience: Sum up items 5, 10, 15, and 20. _______
Extraversion: Sum up items 1, 6, 11, and 16. _______
Now chart your scores in the figure below to see whether you are above or below the norm for
each dimension.
Source: M.B. Donnellan, F.L. Oswald, B.M. Baird, and R.E. Lucas, “The Mini-IPIP Scales: Tiny-Yet-
Effective Measures of the Big Five Factors of Personality,” Psychological Assessment 18 (2006), pp. 192–
203. American Psychological Association.
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
C A N O E
Norms
age 50. Figure 9-2 summarizes the results of 92 studies that assessed personality changes in more
than 50,000 people.11 The figure notes personality changes across seven time periods, including
teenage years (age 10–18), college years (18–22), and people’s 20s, 30s, 40s, 50s, and 60s. The
y-axis expresses changes in personality in standard deviation terms, ranging from +1 (one stan-
dard deviation increase on a given dimension) to −1 (one standard deviation decrease on a given
dimension). In standard deviation terms, a change of .20 is generally considered small, a change
of .50 is generally considered medium, and a change of .80 is generally considered large.12
Figure 9-2 reveals that extraversion typically remains quite stable throughout a person’s life.
Openness to experience also remains stable, after a sharp increase from the teenage years to
college age. The stability of those two dimensions makes sense because extraversion and open-
ness are most dependent on genes.13 The other three dimensions, however, change quite signifi-
cantly over a person’s life span. For example, Figure 9-2 shows that people get more conscientious
as they grow older.14 In addition, people become more agreeable and less neurotic over time.
Although those changes may be encouraging if you dislike your own personal Big Five profile, it’s
important to realize that any changes in personality are very gradual. Consider this question: Can
you detect any personality changes in your closest friends? Chances are you can’t, unless you’ve
known those friends for a period of several years. That long-term lens is needed to spot gradual
fluctuations in Big Five levels. The sections that follow provide more detail about each of the Big
Five dimensions.
Final PDF to printer
270 C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 270 10/11/17 08:46 AM
CONSCIENTIOUSNESS As shown in Figure 9-1, conscientious people are dependable, orga-
nized, reliable, ambitious, hardworking, and persevering.15 It’s difficult, if not impossible, to envi-
sion a job in which those traits will not be beneficial.16 That’s not a claim we make about all of
the Big Five because some jobs require high levels of agreeableness, extraversion, or openness,
while others demand low levels of those same traits. We don’t want to spoil the “how important
is personality?” discussion that concludes this chapter, but suffice it to say that conscientiousness
has the biggest influence on job performance of any of the Big Five. Of course, the key question
therefore becomes: Why is conscientiousness so valuable?
One reason can be found in the general goals that people prioritize in their working life.
Conscientious employees prioritize accomplishment striving, which reflects a strong desire to
accomplish task-related goals as a means of expressing personality.17 People who are “accom-
plishment strivers” have a built-in desire to finish work tasks, channel a high proportion of their
efforts toward those tasks, and work harder and longer on task assignments. As evidence of their
accomplishment-striving nature, one research study showed that conscientious salespeople set
higher sales goals for themselves than unconscientious salespeople and were more committed
to meeting those goals.18 Another study of salespeople showed that conscientious salespeople’s
organizational skills were particularly valuable during their first year of employment, and their
ambitious nature became more critical as they gained tenure and experience.19
A third research study provides particularly compelling evidence regarding the benefits of con-
scientiousness.20 The study used data from the University of California–Berkeley’s Intergenera-
tional Studies Center, which collected data about a set of children in the late 1920s and early
1930s. Those researchers gathered personality data using interviews and assessments of the chil-
dren by trained psychologists. Follow-up studies collected data on the same sample as they reached
early adulthood, middle age, and late adulthood. This last time period included assessments of
career success, which included ratings of annual income and occupational prestige. The results
Source: Adapted from B.W. Roberts, K.E. Walton, and W. Viechtbauer, “Patterns of Mean-Level Change in Personality
Traits across the Life Course: A Meta-Analysis of Longitudinal Studies,” Psychological Bulletin 132 (2006), pp. 1–25.
FIGURE 9-2 Changes in Big Five Dimensions over the Life Span
−1
0
1
10-18 18-22 22-30 30-40 40-50 50-60 60-70
Age Ranges
S
ta
n
d
a
rd
iz
e
d
M
e
a
n
C
h
a
n
g
e
s
in
P
e
rs
o
n
a
lit
y
Conscientiousness
Agreeableness
Neuroticism
Openness
Extraversion
Final PDF to printer
271C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 271 10/11/17 08:46 AM
of the study showed that childhood conscien-
tiousness was strongly correlated with ratings
of career success five decades later! In fact,
those conscientiousness effects were roughly
twice as strong as the effects of the other Big
Five dimensions.
Such findings show that it pays to be con-
scientious; other research even suggests that
conscientiousness is good for your health.
For example, one study gathered data about
the conscientiousness of 1,528 children in the
early 1920s.21 Data on health-relevant behav-
iors were then gathered in 1950 for 1,215 of
the original participants. By 1986, 419 of the participants had died and 796 were still living. The
results of the study revealed that childhood conscientiousness was negatively related to mortality,
including death from injuries, death from cardiovascular disease, and death from cancer. Why did
conscientious participants live longer? The study also showed that conscientiousness was nega-
tively related to alcohol consumption and smoking during adulthood. Other research has shown
that conscientious people are less likely to abuse drugs, more likely to take preventive steps to
remain healthy, and less likely to perform risky behaviors as a driver or pedestrian.22
AGREEABLENESS Agreeable people are warm, kind, cooperative, sympathetic, helpful, and
courteous. Agreeable people prioritize communion striving, which reflects a strong desire to
obtain acceptance in personal relationships as a means of expressing personality. Put differently,
agreeable people focus on “getting along,” not necessarily “getting ahead.”23 Unlike conscien-
tiousness, agreeableness is not related to performance across all jobs or occupations.24 Why not?
The biggest reason is that communion striving is beneficial in some positions but detrimental in
others. For example, managers often need to prioritize the effectiveness of the unit over a desire to
gain acceptance. In such cases, effective job performance may demand being disagreeable in the
face of unreasonable requests or demands.
Of course, there are some jobs in which agreeableness can be beneficial. The most obvious
example is service jobs—jobs in which the employee has direct, face-to-face, or verbal contact with
a customer. How many times have you encountered a customer service person who is cold, rude,
or antagonistic? Did you tend to buy the company’s product after such experiences? Research
suggests that agreeable employees have stronger customer service skills.25 One reason for their
effectiveness in customer service environments is that they’re reluctant to react to conflict with
criticism, threats, or manipulation.26 Instead, they tend to react to conflict by walking away, adopt-
ing a “wait-and-see” attitude, or giving in to the other person.
One study provides unique insights into the effects of agreeableness. The study used a varia-
tion of “lived day analysis,” where a portion of a participant’s daily routine is recorded and ana-
lyzed.27 Ninety-six undergraduates completed assessments of the Big Five personality dimensions
before being fitted with a digital recorder and an electronic microphone that could be clipped
to their shirt collar. The microphone recorded 30 seconds of footage at 12-minute intervals over
the course of two weekdays, with participants unable to track when footage was actually being
recorded. Trained coders then rated the sounds and conversations recorded on the microphone.
The results of the study revealed a number of interesting expressions of agreeableness. Agreeable
participants were significantly less likely to be at home in their apartment during recordings;
instead, they spent more time in public places. They were also less likely to use swear words and
more likely to use words that conveyed personal rapport during conversations. For more on agree-
ableness (along with some other Big Five dimensions), see our OB on Screen feature.
EXTRAVERSION Extraverted people are talkative, sociable, passionate, assertive, bold, and
dominant (in contrast to introverts, who are quiet, shy, and reserved). Of the Big Five, extraver-
sion is the easiest to judge in zero acquaintance situations—situations in which two people have
only just met. Consider times when you’ve been around a stranger in a doctor’s office, in line at
Research suggests that
conscientious individuals
actually live longer. One
potential reason is that
conscientiousness is
associated with less risky
driving behavior.
©Ingram Publishing/Getty Images
Final PDF to printer
272 C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 272 10/11/17 08:46 AM
OB ON SCREEN
LA LA LAND
Sebastian: I hear what you’re saying, but I don’t think you’re saying what you mean.
Bill: Yeah, I don’t think you hear what I’m saying. You’re fired.
With those words, a young piano player gets fired from his restaurant gig in La La Land
(Dir. Damien Chazelle, Summit Entertainment, 2016). Sebastian (Ryan Gosling) is a man with a
singular passion: he wants to play jazz on the piano in his own jazz club in Los Angeles. Currently,
however, he’s living in a studio apartment and taking any piano gigs he can get—all of which seem
beneath him artistically. His only companions in the apartment are his jazz records, unpacked
boxes, and a stack of unpaid bills.
This is not Sebastian’s first time playing in this particular restaurant, and there’s some tension
when Bill, the manager (J.K. Simmons), first greets him. Sebastian diffuses it initially, telling Bill, “I
want you to know you’re looking at a new man . . . a man that’s happy to be here . . . and very easy to
work with.” But they quickly begin to argue about what Sebastian will play. Bill wants a standard set
of Christmas tunes given the holiday season—not any of Sebastian’s signature jazz stylings. Sebastian
tries to negotiate before relenting (and noting that none of the customers care what he plays anyway).
Sebastian gets fired when he lapses from his assigned playlist to a soulful composition of his
own creation—one that’s obviously touched a woman named Mia (Emma Stone) who has just
walked in the door. The sequence illustrates the core of Sebastian’s personality. On the one hand,
he’s high in openness, as many artists are. He finds a set playlist constraining—he longs to express
himself and grow musically. On the other hand, he’s both disagreeable and unconscientious. He’s
argumentative and cynical with Bill, and ultimately disregards the instructions of the one person
providing his paycheck. That disagreeable and unconscientious nature even impacts Mia, literally,
as he brushes past her to exit the restaurant.
Source: La La Land (Dir. Damien Chazelle, Summit Entertainment, 2016)
©Moviestore collection Ltd/Alamy
a grocery store, or in an airport terminal. It takes only about 5 minutes to figure out whether that
stranger is extraverted or introverted.28 Extraversion is also the Big Five dimension that you knew
your standing on, even before taking our self-assessment. People rarely consider how open they
are to new experiences or how agreeable they are, but almost everyone already self-identifies as an
“extravert” or “introvert.”
Final PDF to printer
273C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 273 10/11/17 08:46 AM
Like agreeableness, extraversion is not necessarily related to performance across all jobs or
occupations. However, extraverted people prioritize status striving, which reflects a strong desire
to obtain power and influence within a social structure as a means of expressing personality.29
Extraverts care a lot about being successful and influential and direct their work efforts toward
“moving up” and developing a strong reputation. Indeed, research suggests that extraverts are
more likely to emerge as leaders in social and task-related groups.30 They also tend to be rated as
more effective in a leadership role by the people who are following them.31 One potential reason
for these findings is that people tend to view extraverts, who are more energetic and outgoing, as
more “leaderlike” than introverts.
In addition to being related to leadership emergence and effectiveness, research suggests that
extraverts tend to be happier with their jobs. You may recall from Chapter 4 on job satisfaction
that people’s day-to-day moods can be categorized along two dimensions: pleasantness and activa-
tion. As illustrated in Figure 9-3, extraverted employees tend to be high in what’s called positive
affectivity—a dispositional tendency to experience pleasant, engaging moods such as enthusiasm,
excitement, and elation.32 That tendency to experience positive moods across situations explains
why extraverts tend to be more satisfied with their jobs.33 Research now acknowledges that
employees’ genes have a significant impact on their job satisfaction and that much of that genetic
influence is due to extraversion (and neuroticism, as discussed next). For example, one study of
identical twins reared apart showed that twins’ job satisfaction levels were significantly correlated,
even when the twins held jobs that were quite different in terms of their duties, their complexity,
FIGURE 9-3 Extraversion, Neuroticism, and Typical Moods
Activated
Deactivated
PleasantUnpleasant
Surprised
Astonished
Aroused
Quiet
Still
Inactive
Happy
Cheerful
Pleased
Grouchy
Sad
Blue
Hostile
Nervous
Annoyed
Enthusiastic
Excited
Elated
Bored
Sluggish
Drowsy
Serene
Calm
Content
Extraversion as
“Positive
A
ectivity”
Neuroticism as
“Negative
A
ectivity”
Neuroticism as
“Negative
A
ectivity”
Final PDF to printer
274 C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 274 10/11/17 08:46 AM
and their working conditions.34 In fact, this study suggested that around 30 percent of the varia-
tion in job satisfaction is due to genetic factors such as personality.
Other research suggests that extraverts have more to be happy about than just their jobs. Spe-
cifically, research suggests that extraversion is positively related to more general life satisfaction.35
To shed light on that finding, one study asked students to complete a “life event checklist” by
indicating whether various events had happened to them in the preceding four years.36 The results
showed that extraversion was associated with more positive events, such as joining a club or ath-
letic team, going on vacation with friends, getting a raise at work, receiving an award for non-
academic reasons, and getting married or engaged. Other studies have linked extraversion to the
number of same-sex peers, number of dating partners, frequency of alcohol consumption, and
frequency of attending parties.37 However, extraverts spend so much time doing those things that
they wind up having less frequent interactions with their family.38 Even parents of extraverts enjoy
a phone call home now and again!
NEUROTICISM Neurotic people are nervous, moody, emotional, insecure, and jealous. Occa-
sionally you may see this Big Five dimension called by its flip side: “Emotional Stability” or
“Emotional Adjustment.” If conscientiousness is the most important of the Big Five from the per-
spective of job performance, neuroticism is the second most important.39 There are few jobs for
which the traits associated with neuroticism are beneficial to on-the-job behaviors. Instead, most
jobs benefit from employees who are calm, steady, and secure.
Whereas extraversion is synonymous with positive affectivity, neuroticism is synonymous with
negative affectivity—a dispositional tendency to experience unpleasant moods such as hostility,
nervousness, and annoyance (see Figure 9-3).40 That tendency to experience negative moods
explains why neurotic employees often experience lower levels of job satisfaction than their less
neurotic counterparts.41 Along with extraversion, neuroticism explains much of the impact of
genetic factors on job satisfaction. Research suggests that the negative affectivity associated with
neuroticism also influences life satisfaction, with neurotic people tending to be less happy with
their lives in general.42 In fact, one method of assessing neuroticism (or negative affectivity) is to
determine how unhappy people are with everyday objects and things. This “gripe index” is shown
in Table 9-1. If you find yourself dissatisfied with several of the objects in that table, then you prob-
ably experience negative moods quite frequently.
Neuroticism also influences the way that people deal with stressful situations. Specifically,
neuroticism is associated with a differential exposure to stressors, meaning that neurotic people
are more likely to appraise day-to-day situations as stressful (and therefore feel like they are
exposed to stressors more frequently).43 Neuroticism is also associated with a differential reac-
tivity to stressors, meaning that neurotic people are less likely to believe they can cope with
the stressors that they experience.44 Neuroticism is largely responsible for the Type A Behavior
Pattern that has been shown to affect employees’ health and ability to manage stressful environ-
ments.45 That is, neurotic people are much more likely to be “Type As,” whereas less neurotic
individuals are much more likely to be “Type Bs” (see Chapter 5 on stress for more discussion
of such issues).
Neuroticism is also strongly related to locus of control, which reflects whether people attribute
the causes of events to themselves or to the external environment.46 Neurotic people tend to hold
an external locus of control, meaning that they often believe that the events that occur around
them are driven by luck, chance, or fate. Less neurotic people tend to hold an internal locus of
control, meaning that they believe that their own behavior dictates events. Table 9-2 provides more
detail about the external versus internal distinction. The table includes a number of beliefs that
are representative of an external or internal viewpoint, including beliefs about life in general, work,
school, politics, and relationships. If you tend to agree more strongly with the beliefs in the left
column, then you have a more external locus of control. If you tend to agree more with the right
column, your locus is more internal.
How important is locus of control? One meta-analysis of 135 different research studies showed
that an internal locus of control was associated with higher levels of job satisfaction and job per-
formance.47 A second meta-analysis of 222 different research studies showed that people with an
internal locus of control enjoyed better health, including higher self-reported mental well-being,
Final PDF to printer
275C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 275 10/11/17 08:46 AM
TABLE 9-1 The Neutral Objects Questionnaire (aka The “Gripe Index”)
Instructions: The following questions ask about your degree of satisfaction with several
items. Consider each item carefully. Circle the numbered response that best represents
your feelings about the corresponding item. Then sum up your score.
DISSATISFIED NEUTRAL SATISFIED
Your telephone number 1 2 3
8 1/2 × 11 paper 1 2 3
Popular music 1 2 3
Modern art 1 2 3
Your first name 1 2 3
Restaurant food 1 2 3
Public transportation 1 2 3
Telephone service 1 2 3
The way you were raised 1 2 3
Advertising 1 2 3
The way people drive 1 2 3
Local speed limits 1 2 3
Television programs 1 2 3
The people you know 1 2 3
Yourself 1 2 3
Your relaxation time 1 2 3
Local newspapers 1 2 3
Today’s cars 1 2 3
The quality of food you buy 1 2 3
The movies being produced today 1 2 3
The climate where you live 1 2 3
The high school you attended 1 2 3
The neighbors you have 1 2 3
The residence where you live 1 2 3
The city in which you live 1 2 3
Interpretation: If you scored below a 50, you tend to be less satisfied with everyday objects
than the typical respondent. Such a score may indicate negative affectivity, a tendency to feel
negative emotional states frequently. (Or perhaps you should change your phone number!)
Source: Adapted from T.A. Judge, “Does Affective Disposition Moderate the Relationship between Job Satisfaction
and Voluntary Turnover?” Journal of Applied Psychology 78 (1993), pp. 395–401; and J. Weitz, “A Neglected Concept
in the Study of Job Satisfaction,” Personnel Psychology 5 (1952), pp. 201–05.
Final PDF to printer
276 C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 276 10/11/17 08:46 AM
TABLE 9-2 External and Internal Locus of Control
PEOPLE WITH AN EXTERNAL LOCUS OF
CONTROL TEND TO BELIEVE:
PEOPLE WITH AN INTERNAL LOCUS OF
CONTROL TEND TO BELIEVE:
Many of the unhappy things in people’s lives
are partly due to bad luck.
People’s misfortunes result from the mistakes
they make.
Getting a good job depends mainly on being
in the right place at the right time.
Becoming a success is a matter of hard work;
luck has little or nothing to do with it.
Many times exam questions tend to be so
unrelated to course work that studying is
really useless.
In the case of the well-prepared student,
there is rarely if ever such a thing as an unfair
test.
This world is run by the few people in power,
and there is not much the little guy can do
about it.
The average citizen can have an influence in
government decisions.
There’s not much use in trying too hard to
please people; if they like you, they like you.
People are lonely because they don’t try to
be friendly.
Source: Adapted from J.B. Rotter, “Generalized Expectancies for Internal versus External Control of Reinforcement,”
Psychological Monographs 80 (1966), pp. 1–28.
fewer self-reported physical symptoms, lower blood pressure, and lower stress hormone secre-
tion.48 Internals also enjoyed more social support at work than externals and sensed that they had
a stronger relationship with their supervisors. They viewed their jobs as having more beneficial
characteristics, such as autonomy and significance, and fewer negative characteristics, such as
conflict and ambiguity. In addition, those with an internal locus of control earned a higher salary
than those with an external locus.
OPENNESS TO EXPERIENCE The final dimension of the Big Five is openness to experience.
Open people are curious, imaginative, creative, complex, refined, and sophisticated. Of all the Big
Five, openness to experience has the most alternative labels. Sometimes it’s called “Inquisitive-
ness” or “Intellectualness” or even “Culture” (not in the national culture sense—rather, in the
“high culture” sense of knowing fine wine, art, and clas-
sical music). Much like agreeableness and extraversion,
the traits associated with openness are beneficial in some
jobs but not others. As a result, openness is not related to
job performance across all occupations.
What jobs benefit from high levels of openness? Gen-
erally speaking, jobs that are very fluid and dynamic, with
rapid changes in job demands. Research shows that open
employees excel in learning and training environments,
because their curiosity gives them a built-in desire to
learn new things.49 They also tend to be more adaptable
and quick to identify when the “old way of doing things”
is no longer effective, excelling at the search for a new
and better approach.50 In fact, conscientious employees
are sometimes less effective than open employees in such
environments because their persevering nature some-
times prevents them from abandoning “tried-and-true”
task strategies.
Openness to experience is also more likely to be valu-
able in jobs that require high levels of creative perfor-
mance, where job holders need to be able to generate
People who are open to
new experiences tend to
do well in situations that
offer frequent opportuni-
ties to learn new things,
such as teaching.
©Fuse/Getty Images
Final PDF to printer
277C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 277 10/11/17 08:46 AM
FIGURE 9-4 Openness to Experience and Creativity
Creative
Thought
Creative
Performance
Openness to
Experience
Cognitive
Ability
novel and useful ideas and solutions.51 The relationship between openness and creative perfor-
mance can be seen in Figure 9-4. Together with cognitive ability, openness to experience is a key
driver of creative thought, as smart and open people excel at the style of thinking demanded by
creativity (see Chapter 10 on ability for more discussion of such issues). How good are you at
creative thinking? See Figure 9-5 to find out. Creative thought results in creative performance
FIGURE 9-5 Tests of Creative Thinking
1. What gets wetter as it dries?
2. A woman had two sons who were born on the same hour of the same day of the
3. What occurs once in June, once in July, and twice in August?
4. Make this mathematical expression true by drawing only a single noncurving line:
5+5+5 = 550
5. Join all nine of the dots below using only four (or fewer) noncurving lines, without
Instructions: Do you consider yourself to be a creative thinker? See if you can solve
the problems below. If you need help, the answers can be found in the Takeaways
section of this chapter.
lifting your pen from the paper and without retracing the lines.
same year. But they were not twins. How could this be so?
Final PDF to printer
278 C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 278 10/11/17 08:46 AM
when people come up with new ideas, create fresh approaches to problems, or suggest new inno-
vations that can help improve the workplace.52 The creativity benefits of openness likely explain
why highly open individuals are more likely to migrate into artistic and scientific fields, in which
novel and original products are so critical.53 Dragonfly, a New York–based web video–networking
company, goes to unusual lengths to foster creative thought.54 The company pays $10,000 to
$20,000 to put employees through six hours of hypnotism. The idea is that the relaxation, medita-
tion, and visualization used in hypnosis can unlock the imagination of employees, even if they’re
lower in openness.
BMW, the German automaker, seems to understand the importance of the Big Five dimen-
sions of personality. BMW has worked hard to create a culture of innovation in which there is
never a penalty for proposing new and outlandish ways of improving its cars.55 Those proposed
improvements include a “smart card” that can be taken out of your own BMW and plugged into a
rented one, passing along your music, podcast, and comfort settings to the new vehicle. Openness
is needed to foster such creative thought, but agreeableness is also key to BMW’s culture. Stefan
Krause, BMW’s chief financial officer, summarizes how to push a creative idea successfully: “You
can go into fighting mode or you can ask permission and get everyone to support you. If you do it
without building ties, you will be blocked.”
BMW employees also draw on their conscientiousness in those critical times when a new tech-
nology is introduced or production volume is expanded. During those time periods, employees
from other factories may move into temporary housing far from home to put in extra hours on
another plant’s line. Why are employees so devoted? For one thing, no one at BMW can remem-
ber a layoff—something that is incredibly unique in the auto industry. That’s part of the reason
BMW’s human resources group receives more than 200,000 applications annually. Those fortu-
nate enough to make it to the interview stage participate in elaborate, day-long drills in teams to
make sure that their personalities provide a good match for the company.
BMW’s Leipzig facility,
where the assembly line
moves above work spaces
to give employees a feel
for the rhythm of the plant.
©View Pictures Ltd/Dennis Gilbert/Alamy
Final PDF to printer
279C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 279 10/11/17 08:46 AM
OT H E R TA XO N O M I E S O F P E R S O N A L I T Y
Although the Big Five is the dominant lens for examining personality, it’s not the only framework
with which you might be familiar. One of the most widely administered personality measures in
organizations is the Myers-Briggs Type Indicator (MBTI).56 This instrument was originally created
to test a theory of psychological types advanced by the noted psychologist Carl Jung.57 The MBTI
evaluates individuals on the basis of four types of preferences:58
• Extraversion (being energized by people and social interactions) versus Introversion (being ener-
gized by private time and reflection).
• Sensing (preferring clear and concrete facts and data) versus Intuition (preferring hunches and
speculations based on theory and imagination).
• Thinking (approaching decisions with logic and critical analysis) versus Feeling (approaching
decisions with an emphasis on others’ needs and feelings).
• Judging (approaching tasks by planning and setting goals) versus Perceiving (preferring to have
flexibility and spontaneity when performing tasks).
The MBTI categorizes people into one of 16 different types on the basis of their preferences. For
example, an “ISTJ” has a preference for Introversion, Sensing, Thinking, and Judging. Research
on the MBTI suggests that managers are more likely to be “TJs” than the general population.59
Moreover, the different personality types seem to approach decision-making tasks with differing
emphases on facts, logic, and plans. That said, there is little evidence that the MBTI is a useful
tool for predicting the job satisfaction, motivation, performance, or commitment of employees
across jobs.60 Indeed, one of the reasons the MBTI is so widely used is that there really isn’t a “bad
type”—no one who gets their profile is receiving negative news. As a result, the most appropriate
use of the MBTI is in a team-building context, to help different members understand their varying
approaches to accomplishing tasks. Using the MBTI as any kind of hiring or selection tool does
not appear to be warranted, based on existing research.
A second alternative to the Big Five is offered by research on vocational interests.61 Interests
are expressions of personality that influence behavior through preferences for certain environ-
ments and activities.62 Interests reflect stable and enduring likes and dislikes that can explain why
people are drawn toward some careers and away from others.63 Holland’s RIASEC model suggests
that interests can be summarized by six different personality types:64
• Realistic: Enjoys practical, hands-on, real-world tasks. Tends to be frank, practical, determined,
and rugged.
• Investigative: Enjoys abstract, analytical, theory-oriented tasks. Tends to be analytical, intellec-
tual, reserved, and scholarly.
• Artistic: Enjoys entertaining and fascinating others using imagination. Tends to be original, inde-
pendent, impulsive, and creative.
• Social: Enjoys helping, serving, or assisting others. Tends to be helpful, inspiring, informative,
and empathic.
• Enterprising: Enjoys persuading, leading, or outperforming others. Tends to be energetic, socia-
ble, ambitious, and risk-taking.
• Conventional: Enjoys organizing, counting, or regulating people or things. Tends to be careful,
conservative, self-controlled, and structured.
As shown in Figure 9-6, the RIASEC model further suggests that the personality types
can be classified along two dimensions: the degree to which employees prefer to work with
data versus ideas and the degree to which they prefer to work with people versus things. For
example, those with a Realistic personality prefer to work with things and data more than
people and ideas. The model arranges the personality types in a hexagonal fashion, with types
adjacent to one another being more similar than types that are more distant. The central prem-
ise of the RIASEC model is that employees will have more career satisfaction, job knowledge,
and longevity in occupations that match their personality type.65 For example, Realistic people
9.4
What taxonomies can be
used to describe personal-
ity, other than the Big Five?
Final PDF to printer
280 C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 280 10/11/17 08:46 AM
FIGURE 9-6 Holland’s RIASEC Model
Source: Adapted from J.L. Holland, Making Vocational Choices: A Theory of Careers (Englewood Cliffs, NJ: Prentice
Hall, 1973).
WORKING WITH
THINGS
WORKING WITH
PEOPLE
WORKING WITH
DATA
WORKING WITH
IDEAS
Social
EnterprisingRealistic
Investigative
Artistic
Conventional
should be happier and more effective as craftspeople than as counselors because a craftsper-
sons’ duties provide a good match to their personality. One of the most common applications
of the RIASEC model is interest inventories, which provide people their scores on relevant
personality dimensions, along with a list of occupations that could provide a good match for
that profile.66
C U LT U R A L VA LU E S
As noted previously, our personalities are influenced by both our genes and our environment.
One significant aspect of that environment is the society in which we were raised. Societies can be
described in a number of ways, including their climate and habitat, their sovereignty and political
system, their language and religion, their education and technology levels, and their economic
development.67 However, one of the most important aspects of societies is culture. Culture is
defined as the shared values, beliefs, motives, identities, and interpretations that result from com-
mon experiences of members of a society and are transmitted across generations.68 Culture has
been described as patterns resulting from societal traditions and as the collective programming of
the mind that separates one society from another.69 The shared values, societal traditions, and col-
lective programming that underlies culture influence the development of our personalities while
also shaping the way our traits are expressed.70 In this way, explaining “what we’re like” requires
an awareness of “where we’re from.”
To some extent, cultures provide societies with their own distinct personalities.71 One study on
the Big Five profiles of 51 different cultures showed that some societies tend to value certain per-
sonality traits more than other societies.72 For example, people from India tend to be more con-
scientious than people from Belgium. People from the Czech Republic tend to be more agreeable
Final PDF to printer
281C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 281 10/11/17 08:46 AM
than people from Hong Kong.
People from Brazil tend to be
more neurotic than people
from China. People from
Australia tend to be more
extraverted than people from
Russia. People from Denmark
tend to be more open than
people from Argentina. For
their part, people in the United
States trend toward the high
end of the 51-culture sample
on extraversion and openness,
staying near the middle for the
other Big Five dimensions. Of
course, that doesn’t mean that
all of the members of these
societies have exactly the same personality. Instead, those results merely convey that certain cul-
tures tend to place a higher value on certain traits.
Although it’s possible to contrast nations using the Big Five, as we just did, cross-cultural
research focuses more attention on the shared values aspect of culture. The values that are salient
in a given culture influence how people select and justify courses of action and how they evalu-
ate themselves and other people.73 To some extent, cultural values come to reflect the way things
should be done in a given society.74 Acting in a manner that’s consistent with those values helps
people to fit in, and going against those values causes people to stand out. Just as there are a num-
ber of traits that can be used to describe personality, there are a number of values that can be used
to describe cultures. Given the sheer complexity of culture, it’s not surprising that different studies
have arrived at different taxonomies that can be used to summarize cultural values.
The most well-known taxonomy of cultural values was derived from a landmark study in the
late 1960s and early 1970s by Geert Hofstede, who analyzed data from 88,000 IBM employees
from 72 countries in 20 languages.75 His research showed that employees working in different
countries tended to prioritize different values, and those values clustered into several distinct
dimensions. Those dimensions are summarized in Table 9-3 and include individualism–
collectivism, power distance, uncertainty avoidance, and masculinity–femininity. A subsequent
study added a fifth dimension to the taxonomy: short-term vs. long-term orientation.76 Hofst-
ede’s research introduced scores on each of the dimensions for various cultures, providing
researchers with a quantitative tool to summarize and compare and contrast the cultures of
different societies. Table 9-3 includes some of the countries that have high or low scores on
Hofstede’s dimensions.
Although Hofstede’s dimensions have formed the foundation for much of the research on
cross-cultural management, more recent studies have painted a more nuanced picture of cultural
values. Project GLOBE (Global Leadership and Organizational Behavior Effectiveness) is a col-
lection of 170 researchers from 62 cultures who have studied 17,300 managers in 951 organiza-
tions since 1991.77 The main purpose of Project GLOBE is to examine the impact of culture on the
effectiveness of various leader attributes, behaviors, and practices (see Chapter 14 on leadership
styles and behaviors for more discussion of such issues). In pursuing that goal, project research-
ers asked managers to rate the values held within their organizations and within their societies.
That research identified nine different dimensions that are used to summarize cultures within
Project GLOBE. Some of those dimensions can be viewed as replications of Hofstede’s work. For
example, Project GLOBE identified both power distance and uncertainty avoidance as key dimen-
sions of cultural values. The project also identified collectivism, though it was differentiated into
institutional collectivism (where formalized practices encourage collective action and collective
distribution of resources) and ingroup collectivism (where individuals express pride and loyalty to
specific ingroups).
9.5
What taxonomies can be
used to describe cultural
values?
Research on cultural values
categorizes China as a
highly collective culture,
meaning that its citizens
tend to prioritize taking
care of ingroup members,
and staying loyal to them.
©Plush Studios/Bill Reitzel/Getty Images
Final PDF to printer
282 C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 282 10/11/17 08:46 AM
TABLE 9-3 Hofstede’s Dimensions of Cultural Values
INDIVIDUALISM–COLLECTIVISM
INDIVIDUALISTIC COLLECTIVISTIC
The culture is a loosely knit social framework
in which people take care of themselves and
their immediate family.
The culture is a tight social framework in
which people take care of the members of a
broader ingroup and act loyal to it.
United States, the Netherlands, France Indonesia, China, West Africa
POWER DISTANCE
LOW HIGH
The culture prefers that power be distributed
uniformly where possible, in a more egalitar-
ian fashion.
The culture accepts the fact that power
is usually distributed unequally within
organizations.
United States, Germany, the Netherlands Russia, China, Indonesia
UNCERTAINTY AVOIDANCE
LOW HIGH
The culture tolerates uncertain and ambigu-
ous situations and values unusual ideas and
behaviors.
The culture feels threatened by uncertain and
ambiguous situations and relies on formal
rules to create stability.
United States, Indonesia, the Netherlands Japan, Russia, France
MASCULINITY–FEMININITY
MASCULINE FEMININE
The culture values stereotypically male traits
such as assertiveness and the acquisition of
money and things.
The culture values stereotypically female
traits such as caring for others and caring
about quality of life.
United States, Japan, Germany The Netherlands, Russia, France
SHORT-TERM VS. LONG–TERM ORIENTATION
SHORT–TERM ORIENTED LONG–TERM ORIENTED
The culture stresses values that are more
past- and present-oriented, such as respect
for tradition and fulfilling obligations.
The culture stresses values that are more
future-oriented, such as persistence, pru-
dence, and thrift.
United States, Russia, West Africa China, Japan, the Netherlands
Sources: G. Hofstede, Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations across Nations
(Thousand Oaks, CA: Sage, 2001); G. Hofstede, “Cultural Constraints in Management Theories,” Academy of Manage-
ment Executive 7 (1993), pp. 81–94; and G. Hofstede and M.H. Bond, “The Confucius Connection: From Cultural Roots
to Economic Growth,” Organizational Dynamics 16 (1988), pp. 5–21.
Other dimensions bear some similarity to Hofstede’s work but are conceptually distinct. Those
dimensions are listed below, along with some information on the cultures that score at the higher
and lower ends on a given value. Note that Project GLOBE groups cultures into “country clus-
ters.” Those clusters include Anglo (United States, Canada, Australia, England), Latin America
Final PDF to printer
283C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 283 10/11/17 08:46 AM
(Mexico, Brazil, Colombia, Venezuela), Latin Europe (France, Spain, Italy, Israel), Germanic
Europe (Germany, Austria, the Netherlands, Switzerland), Nordic Europe (Denmark, Finland,
Sweden), Eastern Europe (Poland, Hungary, Russia, Greece), Middle East (Turkey, Egypt, Kuwait,
Morocco), Southern Asia (India, Thailand, Indonesia, Malaysia), Confucian Asia (China, South
Korea, Japan, Singapore), and Sub-Saharan Africa (Zimbabwe, Namibia, Nigeria). The following
descriptions note some of the country clusters that earn high and low scores on a given cultural
value. Note that the Anglo group, which includes the United States, scores in the middle on most
of the cultural values.
• Gender Egalitarianism. The culture promotes gender equality and minimizes role differences
between men and women. High: Nordic Europe, Eastern Europe. Low: Middle East.
• Assertiveness. The culture values assertiveness, confrontation, and aggressiveness in social rela-
tionships. High: Germanic Europe, Eastern Europe. Low: Nordic Europe.
• Future Orientation. The culture engages in planning and investment in the future while delaying
individual or collective gratification. High: Germanic Europe, Nordic Europe. Low: Middle
East, Latin America, Eastern Europe.
• Performance Orientation. The culture encourages and rewards members for excellence and per-
formance improvements. High: Anglo, Confucian Asia, Germanic Europe. Low: Latin America,
Eastern Europe.
• Humane Orientation. The culture encourages and rewards members for being generous, car-
ing, kind, fair, and altruistic. High: Southern Asia, Sub-Saharan Africa. Low: Latin Europe,
Germanic Europe.
Taken together, Hofstede’s work and the Project GLOBE studies have identified between five
and nine cultural value dimensions. However, the lion’s share of cross-cultural research focuses
on individualism–collectivism, perhaps the most fundamental means of differentiating cultures.78
The individualism–collectivism distinction is relevant to various topics within organizational
behavior.79 For example, collectivists exhibit higher levels of task performance and citizenship
behaviors in work team settings, and also exhibit lower levels of counterproductive and withdrawal
behaviors.80 They are also more likely to feel affectively and normatively committed to their
employers than are individualists.81 Research also suggests that collectivists tend to prefer rewards
that are allocated equally on a group-wide basis as opposed to rewards tied solely to individual
achievement.82
Regardless of the particular value of focus, research on cultural values illustrates the potential
differences between the attitudes and beliefs of U.S. employees and the attitudes and beliefs of
employees in other societies. Awareness of such cultural variations is critical, given that those dif-
ferences can influence reactions to change, conflict management styles, negotiation approaches,
and reward preferences, just to name a few.83 Failing to understand those differences can compro-
mise the effectiveness of multinational groups and organizations. Such problems are particularly
likely if employees are high in ethnocentrism, defined as a propensity to view one’s own cultural
values as “right” and those of other cultures as “wrong.”84 For more discussion of this issue, see
our OB Internationally feature.
S U M M A RY: H OW CA N W E D E S C R I B E W H AT
E M P LOY E E S A R E L I K E ?
So how can we explain what employees are like? As shown in Figure 9-7, many of the thousands
of adjectives we use to describe people can be boiled down into the Big Five dimensions of
personality. Conscientiousness reflects the reliability, perseverance, and ambition of employees.
Agreeableness captures their tendency to cooperate with others in a warm and sympathetic
fashion. Neuroticism reflects the tendency to experience negative moods and emotions fre-
quently on a day-to-day basis. Individuals who are high on openness to experience are creative,
imaginative, and curious. Finally, extraverts are talkative, sociable, and assertive and typically
Final PDF to printer
284 C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 284 10/11/17 08:46 AM
Research suggests that ethnocentrism hinders the effectiveness of expatriates, who are employees
working full-time in other countries. Ethnocentrism makes expatriates less likely to adjust to a
new culture, less likely to fulfill the duties required of their international assignment, and more
likely to withdraw from that assignment. How can organizations identify employees with the right
personalities to serve as expatriates? One useful tool is the multicultural personality questionnaire,
which assesses five personality dimensions that can maximize the performance and commitment
of expatriates. Those dimensions are listed below, along with some sample items.
Cultural Empathy. A tendency to empathize with the feelings, thoughts, and behaviors of indi-
viduals with different cultural values.
• I understand other people’s feelings.
• I take other people’s habits into consideration.
Open-mindedness. A tendency to have an open and unprejudiced attitude toward other cultural
values and norms.
• I get involved in other cultures.
• I find other religions interesting.
Emotional Stability. A tendency to remain calm in the kinds of stressful situations that can be
encountered in foreign environments.
• I can put setbacks in perspective.
• I take it for granted that things will turn out right.
Social Initiative. A tendency to be proactive when approaching social situations, which aids in
building connections.
• I easily approach other people.
• I am often the driving force behind things.
Flexibility. A tendency to regard new situations as a challenge and to adjust behaviors to meet
that challenge.
• I could start a new life easily.
• I feel comfortable in different cultures.
Research has linked these five personality traits to a number of expatriate success factors. For
example, individuals with a “multicultural personality” are more likely to aspire to international
positions, more likely to gain international experience, more likely to adjust to new assignments,
and more likely to be happy with their lives during those assignments.
OB INTERNATIONALLY
Sources: K.I. Van der Zee and U. Brinkmann, “Construct Validity Evidence for the Intercultural Readiness Check against
the Multicultural Personality Questionnaire,” International Journal of Selection and Assessment 12 (2004), pp. 285–90; K.I.
Van der Zee and J.P. Van Oudenhoven, “The Multicultural Personality Questionnaire: Reliability and Validity of Self and
Other Ratings of Multicultural Effectiveness,” Journal of Research in Personality 35 (2001), pp. 278–88; J.P. Van Ouden-
hoven and K.I. Van der Zee, “Predicting Multicultural Effectiveness of International Students: The Multicultural Personal-
ity Questionnaire,” International Journal of Intercultural Relations 26 (2002), pp. 679–94; and J.P. Van Oudenhoven S. Mol;
and K.I. Van der Zee, “Study of the Adjustment of Western Expatriates in Taiwan ROC with the Multicultural Personality
Questionnaire,” Asian Journal of Social Psychology 6 (2003), pp. 159–70.
experience positive moods and emotions. Other personality taxonomies, like the MBTI or the
RIASEC model, can also capture many employee traits. Beyond personality, however, what
employees are like also depends on the culture in which they were raised. Cultural values like
individualism–collectivism, power distance, and so forth also influence employees’ thoughts,
emotions, and behaviors.
Final PDF to printer
285C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 285 10/11/17 08:46 AM
FIGURE 9-7 How Can We Describe What Employees Are Like?
The Big Five
• Conscientiousness
• Agreeableness
• Neuroticism
• Openness to Experience
• Extraversion
Other Taxonomies
• Myers-Briggs
• RIASEC Model
Culture Taxonomies
• Hofstede Dimensions
• Project GLOBE Dimensions
What
employees
are like
Personality
Cultural
Values
H O W I M P O R TA N T A R E P E R S O N A L I T Y A N D
C U LT U R A L VA LU E S ?
We’ve already described a number of reasons why the Big Five should be important consider-
ations, particularly in the case of conscientiousness. What if we focus specifically on the two
outcomes in our integrative model of OB, performance and commitment? Figure 9-8 summarizes
the research evidence linking conscientiousness to those two outcomes. The figure reveals that
conscientiousness affects job performance. Of the Big Five, conscientiousness has the strongest
effect on task performance,85 partly because conscientious employees have higher levels of motiva-
tion than other employees.86 They are more self-confident, perceive a clearer linkage between their
effort and their performance, and are more likely to set goals and commit to them. For these rea-
sons, conscientiousness is a key driver of what’s referred to as typical performance, which reflects
performance in the routine conditions that surround daily job tasks.87 An employee’s ability, in
contrast, is a key driver of maximum performance, which reflects performance in brief, special
circumstances that demand a person’s best effort.
Conscientious employees are also more likely to engage in citizenship behaviors.88 Why? One
reason is that conscientious employees are so punctual and have such good work attendance that
they are simply more available to offer “extra mile” sorts of contributions. Another reason is that
they engage in so much more work-related effort that they have more energy to devote to citizen-
ship behaviors.89 A third reason is that they tend to have higher levels of job satisfaction,90 and pos-
itive feelings tend to foster spontaneous instances of citizenship. Finally, conscientious employees
9.6
How does personality
affect job performance
and organizational
commitment?
Final PDF to printer
286 C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 286 10/11/17 08:46 AM
FIGURE 9-8 Effects of Personality on Performance and Commitment
Sources: M.R. Barrick, M.K. Mount, and T.A. Judge, “Personality and Performance at the Beginning of the New Mil-
lennium: What Do We Know and Where Do We Go Next?” International Journal of Selection and Assessment 9 (2001),
pp. 9–30; C.M. Berry, D.S. Ones, and P.R. Sackett, “Interpersonal Deviance, Organizational Deviance, and Their Com-
mon Correlates: A Review and Meta-Analysis,” Journal of Applied Psychology 92 (2007), pp. 410–24; A. Cooper-Hakim
and C. Viswesvaran, “The Construct of Work Commitment: Testing an Integrative Framework,” Psychological Bulletin 131
(2005), pp. 241–59; L.M. Hough and A. Furnham, “Use of Personality Variables in Work Settings,” in Handbook of Psy-
chology, Vol. 12, ed. W.C. Borman, D.R. Ilgen, and R.J. Klimoski (Hoboken, NJ: Wiley, 2003), pp. 131–69; J.E. Mathieu
and D.M. Zajac, “A Review and Meta-Analysis of the Antecedents, Correlates, and Consequences of Organizational Com-
mitment,” Psychological Bulletin 108 (1990), pp. 171–94; and J.F. Salgado, “The Big Five Personality Dimensions and
Counterproductive Behaviors,” International Journal of Selection and Assessment 10 (2002), pp. 117–25.
Job
Performance
Conscient-
iousness
Organizational
Commitment
Conscient-
iousness
Conscientiousness has a moderate positive e�ect on Performance. Conscientious
employees have higher levels of Task Performance. They are also more likely to
engage in Citizenship Behavior and less likely to engage in Counterproductive
Behavior.
Conscientiousness has a moderate positive e�ect on Commitment. Conscientious
employees have higher levels of A�ective Commitment and higher levels of Normative
Commitment. Conscientiousness has no e�ect on Continuance Commitment.
Represents a weak correlation (around .10 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a strong correlation (around .50 in magnitude).
are less likely to engage in counterproductive behaviors,91 for two major reasons. First, their higher
job satisfaction levels make it less likely that they’ll feel a need to retaliate against their organiza-
tion. Second, even if they do perceive some slight or injustice, their dependable and reliable nature
should prevent them from violating organizational norms by engaging in negative actions.92
Figure 9-8 also reveals that conscientious employees tend to be more committed to their organi-
zation.93 They’re less likely to engage in day-to-day psychological and physical withdrawal behaviors
because such actions go against their work habits. They’re also significantly less likely to voluntarily
leave the organization.94 Why? One reason is that the persevering nature of conscientious employ-
ees prompts them to persist in a given course of action for long periods of time. That persistence
can be seen in their daily work effort, but it extends to a sense of commitment to the organization
as well.95 Another reason is that conscientious employees are better at managing stress, perceiving
lower levels of key stressors, and being less affected by them at work.96 In some respects, Figure 9-8
understates the importance of conscientiousness (and personality, more generally). Why? Because
personality becomes more important in some contexts than in others. The principle of situational
strength suggests that “strong situations” have clear behavioral expectations, incentives, or instruc-
tions that make differences between individuals less important, whereas “weak situations” lack
those cues.97 Personality variables tend to be more significant drivers of behavior in weak situations
than in strong situations.98 Similarly, the principle of trait activation suggests that some situations
provide cues that trigger the expression of a given trait.99 For example, a cry for help provides a cue
that can trigger the expression of empathy. Personality variables tend to be more significant drivers
Final PDF to printer
287C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 287 10/11/17 08:46 AM
of behaviors in situations that provide relevant cues than in situations in which those cues are lack-
ing. For more on the benefits of conscientiousness, see our OB at the Bookstore feature.
A P P L I C AT I O N : P E R S O N A L I T Y T E S T S
Given how important personality traits can be to job performance and organizational commit-
ment, it’s not surprising that many organizations try to gauge the personality of job applicants.
What’s the best way to do that? Well, many organizations try to gauge personality through inter-
views by looking for cues that an applicant is conscientious or agreeable or has high levels of some
other relevant personality dimension. Can you see a potential problem with this approach? Here’s
a hint: When was the last time you went into an interview and acted careless, sloppy, moody, or
insecure? It’s probably been awhile. People engage in a number of impression management and
OB AT THE BOOKSTORE
GRIT
by Angela Duckworth (New York: Scribner, 2016).
In sum, no matter the domain, the highly successful had a kind of ferocious determination that
played out in two ways. First, these exemplars were unusually resilient and hardworking. Sec-
ond, they knew in a very, very deep way what it was they wanted . . . It was this combination of
passion and perseverance that made high achievers special. In a word, they had grit.
With those words, Angela Duckworth lays out her thesis about the
core of achievement. Duckworth argues that achievement can be
understood with two equations: talent x effort = skill, and skill x
effort = achievement. The key insight from that pair of equations?
That effort counts twice. Those who are most determined and most
resilient gain from those qualities in two ways, by building more
skills and by getting more out of those skills. Duckworth summa-
rizes those qualities as “grit”—a combination of high passion and
high perseverance.
In her research, Duckworth measures grit with a number of sur-
vey items, answered on a scale ranging from 1 = “Not at all like me”
to 5 = “Very much like me.” They include “Setbacks don’t discour-
age me. I don’t give up easily,” “I am a hard worker,” and “I finish
whatever I begin.” Duckworth’s research has linked grit to commit-
ment and achievement in a wide range of pursuits. For example,
grit explains who survives the most intense phase of West Point’s
training better than anything the academy uses for screening.
Although Duckworth does not explicitly make this connection, it’s clear that grit has much
in common with conscientiousness. Conscientious individuals are hardworking, persevering,
dependable, and reliable—and they are known for the effort they put in. Does the fact that grit is
a personality trait make it impossible to get “grittier”? As Duckworth acknowledges, personality
is only partially genetic—it can change slowly but surely over the course of time. So how does one
become “grittier”? Duckworth provides a number of suggestions, including working in areas of
deep interest and focusing more on the quality of practice than the quantity of practice.
©Roberts Publishing Services
Final PDF to printer
288 C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 288 10/11/17 08:46 AM
self-presentation tactics when interviewing, sometimes to appear to possess traits that they don’t
really have.100 In fact, most interview preparation courses and books train applicants to exhibit the
very personality traits that most employers are looking for!
To examine whether interviewers can gauge the Big Five, one study asked 26 interviewers, all of
whom were human resources practitioners with more than 12 years of hiring experience, to assess
the personalities of undergraduate business students who were on the job market.101 The interview-
ers met with an average of three students for 30 minutes and were instructed to follow the interview
protocols used in their own organizations. Once the interviews had concluded, the study gathered
multiple ratings of the Big Five, including ratings from the interviewer, the student, and a close
friend of the student. The results of the study showed that the interviewers’ ratings of extraversion,
agreeableness, and openness were fairly consistent with the students’ own ratings, as well as their
friends’ ratings. In contrast, interviewers’ ratings of conscientiousness and neuroticism were only
weakly related to the students’ and friends’ ratings. This study therefore shows that interviewers
are unable to gauge the two Big Five dimensions that are most highly related to job performance.
Rather than using interviews to assess personality, more and more companies are relying on
paper-and-pencil “personality tests” like the kind shown in our OB Assessments. A recent survey
of Fortune 1000 firms suggests that around a third of those organizations rely on, or plan to imple-
ment, some form of personality testing.102 If you’ve ever applied for an hourly position at Best Buy,
Target, Toys “R” Us, Marriott, Universal Studios, Sports Authority, CVS Pharmacy, Albertsons,
or Fresh Market, you may have been asked to take a personality test at a computer kiosk as part of
your application.103 That test was designed by Kronos, a workforce management software and ser-
vices provider headquartered in Chelmsford, Massachusetts.104 Kronos’s test includes 50 questions,
many of which are clearly tapping the Big Five:
• You do things carefully so you don’t make mistakes.105 (high conscientiousness)
• You can easily cheer up and forget a problem.106 (low neuroticism)
• You don’t act polite when you don’t want to.107 (low agreeableness)
• You’d rather blend into the crowd than stand out.108 (low extraversion)
Ten minutes after an applicant completes the personality test at the kiosk, the hiring manager
receives a report that identifies the applicant with a “green light,” “yellow light,” or “red light.”109
Green lights earn an automatic follow-up interview, yellow lights require some managerial discretion,
and red lights are excused from the hiring process. The report also includes some recommended
interview questions to follow-up on any concerns that might have arisen based on personality
responses. Kronos has built a database of 370,000 employee personality profiles, together with the
actual job results for those employees, allowing them to look for profiles of effective and committed
employees. Kronos also encourages employers to save the data from the personality tests for several
years, to verify that responses correlate with performance evaluations and turnover over time.
Of course, personality testing is not without controversy. Privacy advocates worry about the
security of the personality profiles that are stored in large databases.110 There’s also no guarantee
that the personality tests used by a company are actually valid assessments because few of them
have been subject to scientific investigation.111 For example, we’re not aware of any scientific studies
in peer-reviewed journals that have comprehensively validated Kronos’s personality test. Because
the personality testing industry is not regulated, the best bet for companies that are thinking about
using personality tests is to start with tests that have been validated in scientific journals. Table 9-4
provides a list of some of the most well-validated measures of the Big Five personality dimensions.
The vendors that own these measures typically offer software and services for scoring the instru-
ments, interpreting the data against relevant population norms, and creating feedback sheets.
One particular subset of personality tests is particularly controversial. Integrity tests, some-
times also called “honesty tests,” are personality tests that focus specifically on a predisposition
to engage in theft and other counterproductive behaviors.112 Integrity tests were created, in part,
as a reaction to Congress’s decision to make polygraph (or “lie detector”) tests illegal as a tool for
organizational hiring. Integrity tests typically come in two general varieties. Clear purpose tests
ask applicants about their attitudes toward dishonesty, beliefs about the frequency of dishonesty,
endorsements of common rationalizations for dishonesty, desire to punish dishonesty, and confes-
sions of past dishonesty.113 Veiled purpose tests do not reference dishonesty explicitly but instead
9.7
Are personality tests useful
tools for organizational
hiring?
Final PDF to printer
289C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 289 10/11/17 08:46 AM
assess more general personality traits that are associated with dishonest acts. Table 9-5 provides
sample items for both types of integrity tests. You might notice that the veiled purpose items
resemble some of the items in our OB Assessments for the Big Five. Most integrity tests actually
assess, in large part, a combination of high conscientiousness, high agreeableness, and low neu-
roticism,114 along with an honesty or humility factor that may lie beyond the Big Five.115
Do integrity tests actually work? One study examined the effectiveness of integrity tests in a sam-
ple of convenience store clerks.116 The chain had been struggling with inventory “shrinkage” due to
theft and began using a clear purpose integrity test to combat that trend. The study compared the
integrity test scores for employees who were fired for theft-related reasons (e.g., taking merchandise,
mishandling cash, having frequent cash register shortages) with a sample of demographically simi-
lar employees who remained in good standing. The results of the study revealed that employees who
were terminated for theft had scored significantly lower on the integrity test when they were hired
than employees who were not terminated. These sorts of results are not unusual; a meta-analysis
of 443 studies including more than 500,000 employees has shown that integrity test scores have a
moderately strong, negative correlation with counterproductive behaviors such as theft.117 In fact,
integrity test scores are actually more strongly related to job performance than conscientiousness
scores, largely because integrity tests sample a blend of multiple Big Five dimensions.118
You might find it surprising that integrity tests (or personality tests in general) can be effective.
After all, don’t applicants just lie on the test? Before we answer that question, consider what you
would do if you applied for a job and had to answer a set of questions on a 1 (“Strongly Disagree”)
to 5 (“Strongly Agree”) scale that were obviously measuring integrity. If a response of 5 indicated
TABLE 9-4 A Sampling of Well-Validated Measures of the Big Five
NAME OF INSTRUMENT VENDOR TIME REQUIRED
NEO Five-Factor Inventory (NEO-FFI) Sigma Assessment Systems 15 minutes
Personal Characteristics Inventory (PCI) Wonderlic 20 minutes
Personality Research Form (PRF) Sigma Assessment Systems 45 minutes
Hogan Personality Inventory (HPI) Hogan Assessment Systems 15 minutes
Big Five Inventory (BFI) TestMaster 10 minutes
TABLE 9-5 Sample Integrity Test Items
TYPE OF TEST SAMPLE ITEMS
Clear Purpose • Would you say that most people lie on their résumé?
• Have you ever taken something home from work without say-
ing anything about it?
• If a cashier gave you too much change, do you think you’d
point out the error?
• At what dollar value would theft from work become a fireable
offense?
Veiled Purpose • I rarely do things impulsively.
• I try to avoid hurting people’s feelings.
• There are people out there I’d like to get back at.
• I’m someone who follows the rules.
Source: Adapted from J.E. Wanek, P.R. Sackett, and D.S. Ones, “Towards an Understanding of Integrity Test Similarities
and Differences: An Item-Level Analysis of Seven Tests,” Personnel Psychology 56 (2003), pp. 873–94.
Final PDF to printer
290 C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 290 10/11/17 08:46 AM
high integrity, how would you answer? You probably wouldn’t answer all 5s because it would be
clear that you were faking—exaggerating your responses to a personality test in a socially desirable
fashion. You might worry that the computers that score the test have some ability to “flag” faked
responses (indeed, the scoring procedures for many personality tests do flag applicants with an
unusual pattern of responses).119
So how would you answer? Chances are, you’d allow your answers to have “a grain of truth”—
you’d just exaggerate that true response a bit to make yourself look better. Figure 9-9 summarizes
FIGURE 9-9 The Effects of Faking on Correlations with Integrity Tests
S
u
p
e
rv
is
o
r
R
a
ti
n
g
s
o
f
C
o
u
n
te
rp
ro
d
u
ct
iv
e
B
e
h
a
vi
o
r
Applicant Scores on Integrity Test
DISHONEST HONEST
IN
F
R
E
Q
U
E
N
T
F
R
E
Q
U
E
N
T
Score without
Faking
Score with
Faking
Amount of Faking
Correlation without faking = -.35
(picture only the faded circles)
Correlation with faking = -.30
(picture only the unfaded circles)
Above Average ScoreBelow Average Score
Final PDF to printer
291C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 291 10/11/17 08:46 AM
what this sort of faking might look like, with red circles representing below-average scores on an
integrity test and green circles representing above-average scores. Research on personality testing
suggests that virtually everyone fakes their responses to some degree, as evidenced in the differ-
ence between the faded circles (which represent the “true” responses) and the unfaded circles
(which represent the exaggerated responses).120 Do dishonest people fake more? To some degree.
Figure 9-9 reveals that applicants who scored below average on the test faked a bit more than
applicants who scored above average on the test. But the disparity in the amount of faking is not
large, likely because dishonest people tend to view their behavior as perfectly normal—they believe
everyone feels and acts just like they do.
The figure reveals that it could be dangerous to set some artificial cutoff score for making hir-
ing decisions, because it’s possible for people to “fake their way” across that cutoff (note that two
of the individuals in the figure went from a below-average score to an above-average score by fak-
ing). With that caution in mind, here’s the critical point illustrated by Figure 9-9: Because everyone
fakes to some degree, correlations with outcomes like theft or other counterproductive behaviors are
relatively unaffected.121 Picture the scatterplot in the figure with just the faded circles—what does
the correlation between integrity test scores and supervisor ratings of counterproductive behavior
look like? Now picture the scatterplot with just the unfaded circles—what does that correlation
look like? About the same, right? The tendency to fake doesn’t really alter the rank order in scores
from most dishonest to most honest, so the test is still useful as a tool for predicting counterpro-
ductive behavior. In fact, experts on personnel selection agree that personality and integrity tests
are among the most useful tools for hiring122—more useful even than the typical version of the
employment interview.123 One of the only tools that’s more useful than a personality test is an abil-
ity test—as noted in our next chapter.124
9.1 Personality refers to the structures and propensities inside people that explain their charac-
teristic patterns of thought, emotion, and behavior. It also refers to people’s social
reputations—the way they are perceived by others. In this way, personality captures what
people are like (unlike ability, which reflects what people can do). Cultural values are shared
beliefs about desirable end states or modes of conduct in a given culture that influence the
development and expression of traits.
9.2 The “Big Five” include conscientiousness (e.g., dependable, organized, reliable), agreeable-
ness (e.g., warm, kind, cooperative), neuroticism (e.g., nervous, moody, emotional), open-
ness to experience (e.g., curious, imaginative, creative), and extraversion (e.g., talkative,
sociable, passionate).
9.3 Although both nature and nurture are important, personality is affected significantly by
genetic factors. Studies of identical twins reared apart and studies of personality stability
over time suggest that between 35 and 45 percent of the variation in personality is genetic.
Personality can be changed, but such changes are apparent only over the course of several
years.
9.4 The Big Five is the dominant taxonomy of personality; other taxonomies include the Myers-
Briggs Type Inventory and Holland’s RIASEC model.
9.5 Hofstede’s taxonomy of cultural values includes individualism–collectivism, power distance,
uncertainty avoidance, masculinity–femininity, and short-term vs. long-term orientation.
More recent research by Project GLOBE has replicated many of those dimensions and
added five other means to distinguish among cultures: gender egalitarianism, assertiveness,
future orientation, performance orientation, and humane orientation.
TA K E AWAY S
Final PDF to printer
292 C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 292 10/11/17 08:46 AM
9.6 Conscientiousness has a moderate positive relationship with job performance and a moder-
ate positive relationship with organizational commitment. It has stronger effects on these
outcomes than the rest of the Big Five.
9.7 Personality tests are useful tools for organizational hiring. Research suggests that applicants
do “fake” to some degree on the tests, but faking does not significantly lower the correlation
between test scores and the relevant outcomes.
Here are the answers to the tests of creative thinking in Figure 9-5: (1) A towel. (2) They were
triplets. (3) The letter U. (4) Draw a line to turn the + into a 4. (5) Solving this puzzle liter-
ally requires you to “think outside the box” (yes, that’s where it comes from!). Nowhere in the
instructions did it state that you needed to keep the lines inside the square formed by the dots.
Connect the dots using the four lines shown below:
K E Y T E R M S
• Personality p. 266
• Traits p. 266
• Cultural values p. 266
• Conscientiousness p. 266
• Agreeableness p. 266
• Neuroticism p. 266
• Openness to experience p. 266
• Extraversion p. 266
• Big Five p. 266
• Accomplishment striving p. 270
• Communion striving p. 271
• Zero acquaintance p. 271
• Status striving p. 273
• Positive affectivity p. 273
• Negative affectivity p. 274
• Differential exposure p. 274
• Differential reactivity p. 274
• Locus of control p. 274
• Myers-Briggs Type Indicator
(MBTI) p. 279
• Interests p. 279
• RIASEC model p. 279
• Culture p. 280
• Individualism–collectivism p. 281
• Power distance p. 281
• Uncertainty avoidance p. 281
• Masculinity–femininity p. 281
• Short-term vs. long-term
orientation p. 281
• Project GLOBE p. 281
• Ethnocentrism p. 283
• Typical performance p. 285
• Maximum performance p. 285
• Situational strength p. 286
• Trait activation p. 286
• Integrity tests p. 288
• Clear purpose tests p. 288
• Veiled purpose tests p. 288
• Faking p. 290
9.1 Assume that you applied for a job and were asked to take a personality test, like the one
offered by Kronos. How would you react? Would you view the organization with which you
were applying in a more or less favorable light? Why?
9.2 Research on genetic influences on personality suggests that more than half of the varia-
tion in personality is due to nurture—to life experiences. What life experiences could make
D I S C U S S I O N Q U E S T I O N S
Final PDF to printer
293C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 293 10/11/17 08:46 AM
someone more conscientious? More agreeable? More neurotic? More extraverted? More
open to new experiences?
9.3 Consider the personality dimensions included in the Myers-Briggs Type Inventory and the
RIASEC model. If you had to “slot” those dimensions into the Big Five, would you be able
to do so? Which dimensions don’t seem to fit?
9.4 Consider the profile of the United States on Hofstede’s cultural values, as shown in Table
9-3. Do you personally feel like you fit the U.S. profile, or do your values differ in some
respects? If you served as an expatriate, meaning you were working in another country,
which cultural value differences would be most difficult for you to deal with?
9.5 If you owned your own business and had a problem with employee theft, would you use an
integrity test? Why or why not?
How exactly has Epstein prioritized personality in shaping the Cubs? One way is by instructing
his scouts to get to know prospects as people. Scouts are instructed to list three examples of
times when players have overcome adversity on the field, and three examples of times they’ve
done so off the field. Scouts are also instructed to ask anyone they can about the prospect’s traits
and qualities, from guidance counselors to girlfriends to family members. How does the prospect
treat others when no one is looking? Is the prospect motivated by money and fame or competi-
tion and winning? Short scouting reports with boxes to be checked were quickly replaced by
detailed summaries several pages long. Speaking of Kyle Schwarber, one of the team’s better hit-
ters, Epstein recalled, “Scouts loved the bat. We all loved the bat. Our statistical model loved the
bat. And makeup was huge. Stan Zielinski, the area scout, did a great job getting to know Kyle
inside and out . . . he’s the perfect player to have as a franchise player because he can be one of
your best players who everybody else wants to follow because of his character.”
Another way is by prioritizing everyday positional players over pitchers who only start once
every five games. Noted Epstein, “And there were a lot of good arms available so the debate in
the draft room really crystallized. It was like, ‘We can choose a pitcher who is going to move
quickly and can help us win every fifth day, but pitchers have a really hard time leading. They
can lead the starting rotation after they get established a little bit, but it’s hard for them to lead
the team. . . . We are going to define our identity . . . we want players who are invested in their
teammates . . . we want players we trust can respond to adversity. We want players other players
like being around.” By focusing on players who are on the field every day, Epstein wound up
creating a culture—not just a collection of personality traits.
Epstein feels vindication for his personality focus by comparing the 2016 team to some of
the other Cubs teams that had made the playoffs a decade earlier. “What was the personality of
those Cubs teams?” he asked. “They had been to the playoffs in ’07, ’08, but what was the per-
sonality? Who were the leaders?” The 2016 team had those leaders, and that was by design.
9.1 When Epstein talks about “character,” “makeup,” and “ethos,” what personality traits does
he seem to be prioritizing?
9.2 Do you think professional baseball scouts can get an accurate read of a prospect’s personal-
ity from observing him and talking to those who know him? Would it be wise for the Cubs
to use personality tests for that purpose?
9.3 Do the personality traits needed to be a successful baseball player differ from the traits
needed to be a successful president of baseball operations? In what way?
Source: T. Verducci, The Cubs Way: The Zen of Building the Best Team in Baseball and Breaking the Curse. New York:
Crown Archetype, 2017.
C A S E : C H I C AG O C U B S
Final PDF to printer
294 C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 294 10/11/17 08:46 AM
EXERCISE: GUESSING PERSONALITY PROFILES
The purpose of this exercise is to explore how noticeable the Big Five personality dimensions are
among classmates. This exercise uses groups, so your instructor will either assign you to a group
or ask you to create your own group. The exercise has the following steps:
9.1 Individually, complete the Big Five measure found in the OB Assessments box in the chapter.
9.2 Write your scores on a small white piece of paper, in the following format: C =, A =, N =,
O =, E =. Try to disguise your handwriting to make it as plain and generic as possible. Fold
your piece of paper so that others cannot see your scores.
9.3 In your group, mix up the pieces of paper. Begin by having one group member choose a
piece of paper, reading the CANOE scores aloud. The group should then try to come to con-
sensus on which member the scores belong to, given the norms for the various dimensions
(C = 14, A = 16, N = 10, O = 15, E = 13). Keep in mind that group members may wind
up reading their own pieces of paper aloud in some cases. Once the group guesses which
member the paper belongs to, they should place the paper in front of that member.
9.4 Moving clockwise, the next group member should choose one of the remaining pieces of
paper, continuing as before. The process repeats until all the pieces of paper have been
assigned to a member. Members can be assigned only one piece of paper, and no switching
is permitted once an assignment has been made.
9.5 Group members should then announce whether the piece of paper assigned to them was in
fact their set of scores. If the assignment was incorrect, they should find their actual piece of
paper and describe the differences in the scores.
9.6 Class discussion (whether in groups or as a class) should center on the following topics:
How accurate were the guesses? Were the guesses more accurate in groups that knew one
another well than in groups with less familiarity? Which personality dimensions were relied
upon most heavily when making assignment decisions? What is it that makes those dimen-
sions more immediately observable?
9.1 Funder, D.C. “Personal-
ity.” Annual Review of
Psychology 52 (2001),
pp. 197–221; and
Hogan, R.T. “Personal-
ity and Personality Mea-
surement.” Handbook of
Industrial and Organiza-
tional Psychology, Vol. 2,
ed. M.D. Dunnette and
L.M. Hough. Palo Alto,
CA: Consulting Psy-
chologists Press, 1991,
pp. 873–919.
9.2 Hogan, “Personal-
ity and Personality
Measurement.”
9.3 Ibid.; Fleeson, W., and
P. Gallagher. “The
Implications of Big
Five Standing for the
Distribution of Trait
Manifestation in Behav-
ior: Fifteen Experience-
Sampling Studies and a
Meta-Analysis.” Journal
of Personality and Social
Psychology 97 (2009),
pp. 1097–1114.
9.4 Rokeach, M. The Nature
of Human Values. New
York: The Free Press,
1973; and Steers, R.M.,
and C.J. Sanchez-
Runde. “Culture,
Motivation, and Work
Behavior.” In Blackwell
Handbook of Cross-
Cultural Management,
ed. M.J. Gannon and
E N D N OT E S
Final PDF to printer
295C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 295 10/11/17 08:46 AM
K.L. Newman. Malden,
MA: Blackwell, 2002,
pp. 190–213.
9.5 Goldberg, L.R. “From
Ace to Zombie: Some
Explorations in the Lan-
guage of Personality.” In
Advances in Personality
Assessment, Vol. 1, ed.
C.D. Spielberger and
J.N. Butcher. Hillsdale,
NJ: Erlbaum, 1982,
pp. 203–34; Allport,
G.W., and H.S. Odbert.
“Trait-Names: A Psycho-
Lexical Study.” Psycho-
logical Monographs 47
(1936), Whole No. 211;
and Norman, W.T. 2800
Personality Trait Descrip-
tors: Normative Operating
Characteristics for a Uni-
versity Population. Ann
Arbor: University of
Michigan Department
of Psychology, 1967.
9.6 Tupes, E.C., and R.E.
Christal. Recurrent Per-
sonality Factors Based
on Trait Ratings. USAF
ASD Technical Report
No. 61–97, Lackland
Air Force Base, TX:
United States Air
Force, 1961, reprinted
in Journal of Personality
60, pp. 225–51; Nor-
man, W.T. “Toward an
Adequate Taxonomy of
Personality Attributes:
Replicated Factor
Structure in Peer
Nomination Personality
Ratings.” Journal of
Abnormal and Social
Psychology 66 (1963),
pp. 574–83; Dig-
man, J.M., and N.K.
Takemoto-Chock. “Fac-
tors in the Natural Lan-
guage of Personality:
Re-Analysis, Compari-
son, and Interpretation
of Six Major Studies.”
Multivariate Behavioral
Research 16 (1981),
pp. 149–70; McCrae,
R.R., and P.T. Costa Jr.
“Updating Norman’s
‘Adequate Taxonomy’:
Intelligence and Per-
sonality Dimensions
in Natural Language
and in Questionnaires.”
Journal of Personality
and Social Psychology
49 (1985), pp. 710–21;
and Goldberg, L.R. “An
Alternative ‘Descrip-
tion of Personality’:
The Big-Five Factor
Structure.” Journal of
Personality and Social
Psychology 59 (1990),
pp. 1216–29.
9.7 Goldberg, L.R. “Lan-
guage and Individual
Differences: The Search
for Universals in
Personality Lexicons.”
In Review of Personality
and Social Psychology,
Vol. 2, ed. L. Wheeler.
Beverly Hills, CA: Sage,
1981, pp. 141–65.
9.8 Arvey, R.D., and T.J.
Bouchard Jr. “Genetics,
Twins, and Organiza-
tional Behavior.” In
Research in Organiza-
tional Behavior, Vol. 16,
ed. B.M. Staw and L.L.
Cummings. Greenwich,
CT: JAI Press, 1994,
pp. 47–82.
9.9 Loehlin, J.C. Genes
and Environment in Per-
sonality Development.
Newbury Park, CA:
Sage, 1992.
9.10 Ibid.
9.11 Roberts, B.W.; K.E.
Walton; and W.
Viechtbauer. “Patterns
of Mean-Level Change
in Personality Traits
across the Life Course:
A Meta-Analysis of
Longitudinal Studies.”
Psychological Bulletin
132 (2006), pp. 1–25.
9.12 Cohen, J. Statistical
Power Analysis for
Behavioral Sciences,
2nd ed. Hillsdale, NJ:
Erlbaum, 1988.
9.13 Loehlin, Genes and
Environment.
9.14 Roberts et al., “Patterns
of Mean-Level Change
in Personality Traits
across the Life Course”;
Jackson, J.J.; T. Bogg;
K.E. Walton; D. Wood;
P.D. Harms; J. Lodi-
Smith; G.W. Edmonds;
and B.W. Roberts. “Not
All Conscientious-
ness Scales Change
Alike: A Multimethod,
Multisample Study of
Age Differences in the
Facets of Conscien-
tiousness.” Journal of
Personality and Social
Psychology 96 (2009),
pp. 446–59; and Soto,
C.J.; O.P. John; S.D.
Gosling; and J. Potter.
“Age Differences in
Personality Traits from
10 to 65: Big Five
Domains and Facets in
a Large Cross-Sectional
Sample.” Journal of
Personality and Social
Psychology 100 (2011),
pp. 330–48.
9.15 Saucier, G. “Mini-
Markers: A Brief
Version of Goldberg’s
Unipolar Big-Five
Markers.” Journal of
Personality Assessment
63 (1994), pp. 506–16;
Goldberg, L.R. “The
Development of Mark-
ers for the Big-Five
Factor Structure.”
Final PDF to printer
296 C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 296 10/11/17 08:46 AM
Psychological Assessment
4 (1992), pp. 26–42;
and McCrae, R.R., and
P.T. Costa Jr. “Valida-
tion of the Five-Factor
Model of Personality
Across Instruments and
Observers.” Journal of
Personality and Social
Psychology 52 (1987),
pp. 81–90.
9.16 Barrick, M.R., and
M.K. Mount. “The
Big Five Personality
Dimensions and Job
Performance: A Meta-
Analysis.” Personnel
Psychology 44 (1991),
pp. 1–26.
9.17 Barrick, M.R.; G.L.
Stewart; and M.
Piotrowski. “Personality
and Job Performance:
Test of the Mediating
Effects of Motivation
among Sales Repre-
sentatives.” Journal of
Applied Psychology 87
(2002), pp. 43–51.
9.18 Barrick, M.R.;
M.K. Mount; and
J.P. Strauss. “Con-
scientiousness and
Performance of Sales
Representatives: Test of
the Mediating Effects
of Goal Setting.”
Journal of Applied
Psychology 78 (1993),
pp. 715–22.
9.19 Stewart, G.L. “Trait
Bandwidth and Stages
of Job Performance:
Assessing Differential
Effects for Consci-
entiousness and its
Subtraits.” Journal of
Applied Psychology 84
(1999), pp. 959–68.
9.20 Judge, T.A.; C.A. Hig-
gins; C.J. Thoreson;
and M.R. Barrick. “The
Big Five Personality
Traits, General Mental
Ability, and Career
Success across the
Life Span.” Personnel
Psychology 52 (1999),
pp. 621–52.
9.21 Friedman, H.S.; J.S.
Tucker; J.E. Schwartz;
L.R. Martin; C.
Tomlinson-Keasey;
D.L. Wingard; and
M.H. Criqui. “Child-
hood Conscientious-
ness and Longevity:
Health Behaviors and
Cause of Death.” Jour-
nal of Personality and
Social Psychology 68
(1995), pp. 696–703.
9.22 Roberts, B.W.; O.S.
Chernyshenko; S.
Stark; and L.R. Gold-
berg. “The Structure
of Conscientiousness:
An Empirical Investiga-
tion Based on Seven
Major Personality
Dimensions.” Personnel
Psychology 58 (2005),
pp. 103–39.
9.23 Barrick et al., “Person-
ality and Job Perfor-
mance”; and Hogan, J.,
and B. Holland. “Using
Theory to Evaluate
Personality and
Job-Performance Rela-
tions: A Socioanalytic
Perspective.” Journal of
Applied Psychology 88
(2003), pp. 100–12.
9.24 Barrick and Mount,
“The Big Five Personal-
ity Dimensions.”
9.25 Frei, R.L., and M.A.
McDaniel. “Validity
of Customer Service
Measures in Personnel
Selection: A Review
of Criterion and
Construct Evidence.”
Human Performance 11
(1998), pp. 1–27.
9.26 Graziano, W.G.; L.A.
Jensen-Campbell; and
E.C. Hair. “Perceiving
Interpersonal Conflict
and Reacting to It:
The Case for Agree-
ableness.” Journal of
Personality and Social
Psychology 70 (1996),
pp. 820–35.
9.27 Mehl, M.R.; S.D.
Gosling; and J.W.
Pennebaker. “Person-
ality in Its Natural
Habitat: Manifestations
and Implicit Folk
Theories of Personality
in Daily Life.” Journal
of Personality and Social
Psychology 90 (2006),
pp. 862–77.
9.28 Albright, L.; D.A.
Kenny; and T.E. Mal-
loy. “Consensus in
Personality Judgments
at Zero Acquaintance.”
Journal of Personality
and Social Psychology
55 (1988), pp. 387–95;
and Levesque, M.J.,
and D.A. Kenny.
“Accuracy of Behav-
ioral Predictions at
Zero Acquaintance:
A Social Relations
Analysis.” Journal of
Personality and Social
Psychology 65 (1993),
pp. 1178–87.
9.29 Barrick et al., “Per-
sonality and Job
Performance.”
9.30 Judge, T.A.; J.E. Bono;
R. Ilies; and M.W.
Gerhardt. “Personality
and Leadership: A
Qualitative and Quanti-
tative Review.” Journal
of Applied Psychology 87
(2002), pp. 765–80.
Final PDF to printer
297C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 297 10/11/17 08:46 AM
9.31 Ibid.
9.32 Thoreson, C.J.; S.A.
Kaplan; A.P. Barsky;
C.R. Warren; and K. de
Chermont. “The Affec-
tive Underpinnings of
Job Perceptions and
Attitudes: A Meta-
Analytic Review and
Integration.” Psychologi-
cal Bulletin 129 (2003),
pp. 914–45.
9.33 Ibid.; Judge, T.A.;
D. Heller; and M.K.
Mount. “Five-Factor
Model of Personality
and Job Satisfaction: A
Meta-Analysis.” Journal
of Applied Psychology
87 (2003), pp. 530–41;
and Kaplan, S.; J.C.
Bradley; J.N. Luchman;
and D. Haynes. “On
the Role of Positive and
Negative Affectivity
in Job Performance:
A Meta-Analytic
Investigation.” Journal
of Applied Psychology 94
(2009), pp. 162–76.
9.34 Arvey, R.D.; T.J.
Bouchard; N.L. Segal;
and L.M. Abraham.
“Job Satisfaction: Envi-
ronmental and Genetic
Components.” Journal
of Applied Psychology 74
(1989), pp. 187–92.
9.35 Steel, P.; J. Schmidt;
and J. Shultz. “Refin-
ing the Relationship
between Personality
and Subjective Well-
Being.” Psychological
Bulletin 134 (2008),
pp. 138–61; and Steel,
P., and D.S. Ones.
“Personality and Happi-
ness: A National-Level
Analysis.” Journal of
Personality and Social
Psychology 83 (2002),
pp. 767–81.
9.36 Magnus, K.; E. Diener;
F. Fujita; and W. Pavot.
“Extraversion and
Neuroticism as Predic-
tors of Objective Life
Events: A Longitudinal
Analysis.” Journal of
Personality and Social
Psychology 65 (1992),
pp. 1046–53.
9.37 Paunonen, S.V. “Big
Five Predictors of Per-
sonality and Replicated
Predictions of Behav-
ior.” Journal of Personal-
ity and Social Psychology
84 (2003), pp. 411–24;
and Asendorpf, J.B.,
and S. Wilpers. “Person-
ality Effects on Social
Relationships.” Journal
of Personality and Social
Psychology 74 (1998),
pp. 1531–44.
9.38 Asendorpf and Wilpers,
“Personality Effects on
Social Relationships.”
9.39 Barrick, M.R., and
M.K. Mount. “Select
on Conscientiousness
and Emotional Stabil-
ity.” In Blackwell Hand-
book of Principles of
Organizational Behavior,
ed. E.A. Locke.
Malden, MA: Black-
well, 2000, pp. 15–28.
9.40 Thoreson et al.,
“The Affective
Underpinnings.”
9.41 Ibid.; and Kaplan et
al., “On the Role of
Positive and Negative
Affectivity in Job
Performance.”
9.42 DeNeve, K.M., and
H. Cooper. “The
Happy Personality: A
Meta-Analysis of 137
Personality Traits and
Subjective Well-Being.”
Psychological Bulletin
124 (1998), pp. 197–229;
Steel et al., “Refin-
ing the Relationship
between Personality
and Subjective Well-
Being”; and Steel and
Ones, “Personality and
Happiness.”
9.43 Bolger, N., and A.
Zuckerman. “A
Framework for Study-
ing Personality in the
Stress Process.” Journal
of Personality and Social
Psychology 69 (1995),
pp. 890–902.
9.44 Ibid.
9.45 Friedman, M., and
R.H. Rosenman. Type
A Behavior and Your
Heart. New York:
Knopf, 1974.
9.46 Rotter, J.B. “General-
ized Expectancies for
Internal versus External
Control of Reinforce-
ment.” Psychological
Monographs 80 (1966),
pp. 1–28.
9.47 Judge, T.A., and J.E.
Bono. “Relationship of
Core Self-Evaluations
Traits—Self-Esteem,
Generalized Self-
Efficacy, Locus of
Control, and Emotional
Stability—with Job
Satisfaction and Job
Performance: A Meta-
Analysis.” Journal of
Applied Psychology 86
(2001), pp. 80–92.
9.48 Ng, T.W.H.; K.L.
Sorensen; and L.T.
Eby. “Locus of Control
at Work: A Meta-
Analysis.” Journal of
Organizational Behavior
27 (2006), pp. 1057–87.
9.49 Barrick and Mount,
“The Big Five
Final PDF to printer
298 C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 298 10/11/17 08:46 AM
Personality Dimen-
sions”; and Cellar,
D.F.; M.L. Miller; D.D.
Doverspike; and J.D.
Klawsky. “Comparison
of Factor Structures
and Criterion-Related
Validity Coefficients
for Two Measures of
Personality Based on
the Five Factor Model.”
Journal of Applied Psy-
chology 81 (1996), pp.
694–704.
9.50 LePine, J.A.; J.A.
Colquitt; and A.
Erez. “Adaptability
to Changing Task
Contexts: Effects of
General Cognitive
Ability, Conscientious-
ness, and Openness to
Experience.” Personnel
Psychology 53 (2000),
pp. 563–93; and Thore-
son, C.J.; J.C. Bradley;
P.D. Bliese; and J.D.
Thoreson. “The Big
Five Personality Traits
and Individual Job
Performance Growth
Trajectories in Mainte-
nance and Transitional
Job Stages.” Journal of
Applied Psychology 89
(2004), pp. 835–53.
9.51 Shalley, C.E.; J. Zhou;
and G.R. Oldham. “The
Effects of Personal and
Contextual Charac-
teristics on Creativity:
Where Should We Go
from Here?” Journal of
Management 30 (2004),
pp. 933–58.
9.52 Zhou, J., and J.M.
George. “When Job
Dissatisfaction Leads
to Creativity: Encourag-
ing the Expression of
Voice.” Academy of
Management Journal 44
(2001), pp. 682–96.
9.53 Feist, G.J. “A Meta-
Analysis of Personality
in Scientific and
Artistic Creativity.”
Personality and Social
Psychology Review 2
(1998), pp. 290–309.
9.54 Stead, D. “You Are
Getting Creative . . .
Very Creative.” Busi-
nessWeek, May 12,
2008, p. 18.
9.55 Edmondson, G.
“BMW’s Dream Fac-
tory.” BusinessWeek,
October 16, 2006,
pp. 70–80.
9.56 Myers, I.B., and M.H.
McCaulley. Manual: A
Guide to the Develop-
ment and Use of the
Myers-Briggs Type Indi-
cator. Palo Alto, CA:
Consulting Psycholo-
gists Press, 1985.
9.57 Jung, C.G. The Col-
lected Works of C. G.
Jung, Vol. 6: Psycho-
logical Types, trans.
H.G. Baynes, ed. R. F.
Hull. Princeton, NJ:
Princeton University
Press, 1971.
9.58 Gardner, W.L., and M.J.
Martinko. “Using the
Myers-Briggs Type Indi-
cator to Study Manag-
ers: A Literature Review
and Research Agenda.”
Journal of Management
22 (1996), pp. 45–83;
and “What Is Your
Myers Briggs Personal-
ity Type?” http://www
.personalitypathways
.com/type_inventory.
html (accessed March
18, 2007).
9.59 Gardner and Martinko,
“Using the Myers-
Briggs Type Indicator.”
9.60 Ibid.
9.61 Holland, J.L. “A
Theory of Vocational
Choice.” Journal of
Counseling Psychology 6
(1959), pp. 35–45; and
Holland, J.L. Making
Vocational Choices: A
Theory of Vocational
Personalities and Work
Environments, 3rd ed.
Odessa, FL: Psycho-
logical Assessment
Resources, 1997.
9.62 Mount, M.K.; M.R.
Barrick; S.M. Scullen;
and J. Rounds. “Higher-
Order Dimensions of
the Big Five Personality
Traits and the Big Six
Vocational Interests.”
Personnel Psychology 58
(2005), pp. 447–78.
9.63 Strong, E.K. “An
18-Year Longitudinal
Report on Interests.” In
The Strong Vocational
Interest Blank: Research
and Uses, ed. W.L.
Layton. Minneapolis,
MN: University of Min-
nesota Press, 1960.
9.64 Holland, Making Voca-
tional Choices; “Pro-
viding Holland Code
Resources Worldwide”
(n.d.), Hollandcodes.
com; and Armstrong,
P.I.; W. Allison; and J.
Rounds. “Development
and Initial Validation
of Brief Public Domain
RIASEC Marker
Scales.” Journal of
Vocational Behavior 73
(2008), pp. 287–99.
9.65 Muchinsky, P.M.
“Applications of Hol-
land’s Theory in Indus-
trial and Organizational
Settings.” Journal of
Vocational Behavior 55
Final PDF to printer
299C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 299 10/11/17 08:46 AM
(1999), pp. 127–35;
and Van Iddekinge,
C.H.; D.J. Putka; and
J.P. Campbell. “Recon-
sidering Vocational
Interests for Personnel
Selection: The Validity
of an Interest-Based
Selection Test in Rela-
tion to Job Knowledge,
Job Performance,
and Continuance
Intentions.” Journal of
Applied Psychology 96
(2011), pp. 13–33.
9.66 Campbell, D.P., and
F.H. Borgen. “Hol-
land’s Theory and
the Development of
Interest Inventories.”
Journal of Vocational
Behavior 55 (1999), pp.
86–101; and Rayman,
J., and L. Atanasoff.
“Holland’s Theory of
Career Intervention:
The Power of the
Hexagon.” Journal of
Vocational Behavior 55
(1999), pp. 114–26.
9.67 Tsui, A.S.; S.S. Nifad-
kar; and A.Y. Ou.
“Cross-National, Cross-
Cultural Organizational
Behavior Research:
Advances, Gaps, and
Recommendations.”
Journal of Management
33 (2007), pp. 426–78.
9.68 House, R.J.; P.J.
Hanges; M. Javidan;
P.W. Dorfman; and V.
Gupta. Culture, Leader-
ship, and Organizations:
The GLOBE Study of
62 Societies. Thousand
Oaks, CA: Sage, 2004.
9.69 Kroeber, A.L., and C.
Kluckhohn. Culture:
A Critical Review of
Concepts and Defini-
tions. Cambridge, MA:
Harvard University
Press, 1952; and Hof-
stede, G. Cultures and
Organizations: Software
of the Mind. London:
McGraw-Hill, 1991.
9.70 Zou, X.; K.P. Tam;
M.W. Morris; S.l.
Lee; I.Y.M. Lau; and
C.Y. Chiu. “Culture
as Common Sense:
Perceived Consensus
versus Personal Beliefs
as Mechanisms of
Cultural Influence.”
Journal of Personality
and Social Psychology
97 (2009), pp. 579–97.
9.71 Heine, S.J., and E.E.
Buchtel. “Personality:
The Universal and the
Culturally Specific.”
Annual Review of
Psychology 60 (2009),
pp. 369–94.
9.72 McCrae, R.R.; A. Ter-
racciano; and 79 Mem-
bers of the Personality
Profiles of Cultures Proj-
ect. “Personality Profiles
of Cultures: Aggregate
Personality Traits.”
Journal of Personality
and Social Psychology 89
(2005), pp. 407–25.
9.73 Schwartz, S.H. “Univer-
sals in the Content and
Structure of Values:
Theoretical Advances
and Empirical Tests in
20 Countries.” Advances
in Experimental Social
Psychology, Vol. 25, ed.
M.P. Zanna. San Diego,
CA: Academic Press,
1992, pp. 1–65.
9.74 House et al., Culture,
Leadership, and
Organizations.
9.75 Hofstede, G. Cul-
ture’s Consequences:
Comparing Values,
Behaviors, Institutions,
and Organizations
across Nations. Thou-
sand Oaks, CA: Sage,
2001; and Kirkman,
B.L.; K.B. Lowe;
and C.B. Gibson. “A
Quarter Century of
Culture’s Consequences:
A Review of Empirical
Research Incorporating
Hofstede’s Cultural
Values Framework.”
Journal of International
Business Studies 37
(2006), pp. 285–320.
9.76 Hofstede, G., and M.H.
Bond. “The Confucius
Connection: From
Cultural Roots to
Economic Growth.”
Organizational Dynam-
ics 16 (1988), pp. 5–21.
9.77 House et al., Culture,
Leadership, and
Organizations.
9.78 Chen, Y.; K. Leung;
and C.C. Chen. “Bring-
ing National Culture
to the Table: Making a
Difference with Cross-
Cultural Differences
and Perspectives.” Acad-
emy of Management
Annals 3 (2009),
pp. 217–49.
9.79 Oyserman, D.; H.M.
Coon; and M. Kem-
melmeier. “Rethinking
Individualism and Col-
lectivism: Evaluation of
Theoretical Assumptions
and Meta-Analyses.”
Psychological Bulletin
128 (2002), pp. 3–72;
Earley, P.C., and C.B.
Gibson. “Taking Stock
in Our Progress on
Individualism–
Collectivism: 100
Years of Solidarity
Final PDF to printer
300 C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 300 10/11/17 08:46 AM
and Community.”
Journal of Manage-
ment 24 (1998), pp.
265–304; and Taras,
V.; B.L. Kirkman; and
P. Steel. “Examining
the Impact of Culture’s
Consequences: A Three-
Decade, Multilevel,
Meta-Analytic Review
of Hofstede’s Cultural
Value Dimensions.
Journal of Applied
Psychology 95 (2010),
pp. 405–39.
9.80 Jackson, C.L.; J.A.
Colquitt; M.J. Wesson;
and C.P. Zapata-
Phelan. “Psychological
Collectivism: A Mea-
surement Validation
and Linkage to Group
Member Performance.”
Journal of Applied Psy-
chology 91 (2006), pp.
884–99; and Dierdorff,
E.C.; S.T. Bell; and J.A.
Belohlav. “The Power
of ‘We’: Effects of Psy-
chological Collectivism
on Team Performance
Over Time.” Journal of
Applied Psychology 96
(2011), pp. 247–62.
9.81 Wasti, S.A., and O.
Can. “Affective and
Normative Commit-
ment to Organization,
Supervisor, and
Coworker: Do Collec-
tivist Values Matter?”
Journal of Vocational
Behavior 73 (2008),
pp. 404–13.
9.82 Earley and Gibson,
“Taking Stock in Our
Progress.”
9.83 Kirkman et al., “A
Quarter Century.”
9.84 Black, J.S. “The Rela-
tionship of Personal
Characteristics with the
Adjustment of Japanese
Expatriate Managers.”
Management Interna-
tional Review 30 (1990),
pp. 119–34.
9.85 Barrick, M.R.; M.K.
Mount; and T.A. Judge.
“Personality and Perfor-
mance at the Beginning
of the New Millennium:
What Do We Know
and Where Do We Go
Next?” International
Journal of Selection and
Assessment 9 (2001),
pp. 9–30; and Hough,
L.M., and A. Furnham.
“Use of Personality
Variables in Work
Settings.” In Handbook
of Psychology, Vol. 12,
ed. W.C. Borman,
D.R. Ilgen, and R.J.
Klimoski. Hoboken,
NJ: Wiley, 2003, pp.
131–69.
9.86 Judge, T. A., and R.
Ilies. “Relationship of
Personality to Perfor-
mance Motivation: A
Meta-Analysis.” Journal
of Applied Psychology 87
(2002), pp. 797–807.
9.87 Sackett, P.R.; S.
Zedeck; and L. Fogli.
“Relations Between
Measures of Typical
and Maximum Job
Performance.” Journal
of Applied Psychology 73
(1988), pp. 482–86.
9.88 Hough and Furnham,
“Use of Personality
Variables in Work
Settings”; and Ilies,
R.; I.S. Fulmer; M.
Spitzmuller; and M.D.
Johnson. “Personality
and Citizenship Behav-
ior: The Mediating Role
of Job Satisfaction.”
Journal of Applied
Psychology 94 (2009),
pp. 945–59.
9.89 Mount, M.K., and M.R.
Barrick. “The Big Five
Personality Dimen-
sions: Implications for
Research and Practice in
Human Resources Man-
agement.” In Research
in Personnel and Human
Resource Management,
ed. G.R. Ferris. Green-
wich, CT: JAI Press,
1995, pp. 153–200.
9.90 Ilies et al., “Personality
and Citizenship Behav-
ior”; and Judge et al.,
“Five-Factor Model.”
9.91 Salgado, J.F. “The Big
Five Personality Dimen-
sions and Counterpro-
ductive Behaviors.”
International Journal of
Selection and Assessment
10 (2002), pp. 117–25.
9.92 Cullen, M.J., and P.
Sackett. “Personality
and Counterproductive
Work Behavior.” In Per-
sonality and Work, ed.
M.A. Barrick and A.M.
Ryan. San Francisco:
Jossey-Bass, 2003,
pp. 150–82.
9.93 Cooper-Hakim, A., and
C. Viswesvaran. “The
Construct of Work
Commitment: Testing
an Integrative Frame-
work.” Psychological
Bulletin 131 (2005),
pp. 241–59; and
Mathieu, J.E., and D.M.
Zajac. “A Review and
Meta-Analysis of the
Antecedents, Corre-
lates, and Consequences
of Organizational Com-
mitment.” Psychological
Bulletin 108 (1990),
pp. 171–94.
Final PDF to printer
301C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 301 10/11/17 08:46 AM
9.94 Salgado, “The Big
Five Personality
Dimensions”; and Zim-
merman., R.D. “Under-
standing the Impact of
Personality Traits on
Individuals’ Turnover
Decisions: A Meta-
Analytic Path Model.”
Personnel Psychology 61
(2008), pp. 309–48.
9.95 Cooper-Hakim and
Viswesvaran, “The
Construct of Work
Commitment.”
9.96 Grant, S., and J.
Langan-Fox. “Personal-
ity and Occupational
Stressor–Strain Rela-
tionships: The Role of
the Big Five.” Journal
of Occupational Health
Psychology 12 (2007),
pp. 20–33.
9.97 Mischel, W. “The Inter-
action of Person and
Situation.” In Personality
at the Crossroads: Current
Issues in Interactional
Psychology, ed. D. Mag-
nusson and N.S. Endler.
Hillsdale, NJ: Erlbaum,
1977, pp. 333–52; and
Weiss, H.M., and S.
Adler. “Personality
and Organizational
Behavior.” In Research in
Organizational Behavior,
Vol. 6, ed. B.M. Staw
and L.L. Cummings.
Greenwich, CT: JAI
Press, 1984, pp. 1–50.
9.98 Barrick, M.R., and
M.K. Mount. “Auton-
omy as a Moderator
of the Relationship
between the Big Five
Personality Dimensions
and Job Performance.”
Journal of Applied Psy-
chology 78 (1993),
pp. 111–18.
9.99 Tett, R.P., and D.D.
Burnett. “A Person-
ality Trait-Based
Interactionist Model
of Job Performance.”
Journal of Applied
Psychology 88 (2003),
pp. 500–17.
9.100 Barrick, M.R.; J.A.
Shaffer; and S.W.
DeGrassi. “What
You See May Not
Be What You Get:
Relationships among
Self-Presentation
Tactics and Ratings
of Interview and Job
Performance.” Journal
of Applied Psychol-
ogy 94 (2009), pp.
1394–1411.
9.101 Barrick, M.R.; G.K.
Patton; and S.N.
Haugland. “Accu-
racy of Interviewer
Judgments of Job
Applicant Personality
Traits.” Personnel
Psychology 53 (2000),
pp. 925–51.
9.102 Piotrowski, C., and T.
Armstrong. “Current
Recruitment and
Selection Practices:
A National Survey of
Fortune 1000 Firms.”
North American
Journal of Psychology
8 (2006), pp. 489–96;
and Frauenheim, E.
“More Companies
Go with Online Tests
to Fill in the Blanks.”
Workforce Manage-
ment, May 2011,
pp. 12–13.
9.103 Frauenheim, E. “The
(Would-Be) King of
HR Software.” Work-
force Management,
August 14, 2006, pp.
34–39; Frauenheim,
E. “Unicru Beefs Up
Data in Latest Screen-
ing Tool.” Workforce
Management, March
13, 2006, pp. 9–10;
Overholt, A. “True or
False: You’re Hiring
the Right People.”
Fast Company,
January 2002,
p. 110; and Dixon,
P. “Employment
Application Kiosks
and Sites. Excerpted
from the 2003 Job
Search Privacy Study:
Job Searching in the
Networked Environ-
ment: Consumer
Privacy Benchmarks.”
World Privacy Forum,
November 11, 2003,
http://www.world
privacyforum.org.
9.104 Frauenheim, “The
(Would-Be) King of
HR Software.”
9.105 Overholt, “True or
False.”
9.106 Ibid.
9.107 Frauenheim, “Unicru
Beefs Up Data.”
9.108 Gellar, A. “Hiring by
Computer,” (n.d.),
http://jobboomcc.
canoe.ca/News/2004/
06/09/1225576-sun.
html.
9.109 Overholt, “True or
False.”
9.110 Dixon, “Employment
Application Kiosks
and Sites.”
9.111 Frauenheim, “The
(Would-Be) King.”
9.112 Sackett, P.R., and
M.M. Harris.
“Honesty Testing
for Personnel Selec-
tion: A Review and
Final PDF to printer
302 C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 302 10/11/17 08:46 AM
Critique.” Personnel
Psychology 37 (1984),
pp. 221–45; Sackett,
P.R.; L.R. Burris;
and C. Callahan.
“Integrity Testing for
Personnel Selection:
An Update.” Personnel
Psychology 42 (1989),
pp. 491–528; Sackett,
P.R., and J.E. Wanek.
“New Developments
in the Use of Mea-
sures of Honesty,
Integrity, Conscien-
tiousness, Dependabil-
ity, Trustworthiness,
and Reliability
for Personnel Selec-
tion.” Personnel Psy-
chology 49 (1996),
pp. 787–829; Berry,
C.M.; P.R. Sackett;
and S. Wiemann. “A
Review of Recent
Developments in Integ-
rity Test Research.”
Personnel Psychology 60
(2007), pp. 271–301;
and Miner, J.B., and
M.H. Capps. How
Honesty Testing Works.
Westport, CT: Quorum
Books, 1996.
9.113 Sackett et al.,
“Integrity Testing”;
and Ones, D.S.; C.
Viswesvaran; and F.L.
Schmidt. “Compre-
hensive Meta-Analysis
of Integrity Test
Validities: Findings
and Implications for
Personnel Selection
and Theories of Job
Performance.” Jour-
nal of Applied Psychol-
ogy 78 (1993),
pp. 679–703.
9.114 Wanek, J.E.; P.R.
Sackett; and D.S.
Ones. “Towards an
Understanding of
Integrity Test Similari-
ties and Differences:
An Item-Level
Analysis of Seven
Tests.” Personnel Psy-
chology 56 (2003),
pp. 873–94; and Mar-
cus, B.; S. Hoft; and
M. Riediger. “Integrity
Tests and the Five-
Factor Model of
Personality: A Review
and Empirical Test of
Two Alternative Posi-
tions.” International
Journal of Selection
and Assessment 14
(2006), pp. 113–30.
9.115 Marcus, B.; K. Lee;
and M.C. Ashton.
“Personality Dimen-
sions Explaining
Relationships between
Integrity Tests and
Counterproductive
Behavior: Big Five, or
One in Addition?” Per-
sonnel Psychology 60
(2007), pp. 1–34; and
Berry et al., “A Review
of Recent Develop-
ments in Integrity Test
Research.”
9.116 Bernardin, H.J., and
D.K. Cooke. “Validity
of an Honesty Test
in Predicting Theft
among Convenience
Store Employees.”
Academy of
Management Journal
36 (1993),
pp. 1097–1108.
9.117 Ones et al., “A
Comprehensive
Meta-Analysis.”
9.118 Ibid.
9.119 Goffin, R.D., and
N.D. Christiansen.
“Correcting Personal-
ity Tests for Faking:
A Review of Popular
Personality Tests and
an Initial Survey of
Researchers.” Interna-
tional Journal of Selec-
tion and Assessment 11
(2003), pp. 340–44.
9.120 Birkeland, S.A.;
T.M. Manson; J.L.
Kisamore; M.T. Bran-
nick; and M.A. Smith.
“A Meta-Analytic
Investigation of Job
Applicant Faking
on Personality Mea-
sures.” International
Journal of Selection
and Assessment 14
(2006), pp. 317–35;
and Viswesvaran, C.,
and D.S. Ones. “Meta-
Analysis of Fakability
Estimates: Implica-
tions for Personality
Measurement.” Educa-
tional and Psychologi-
cal Measurement 59
(1999), pp. 197–210.
9.121 Miner and Capps,
How Honesty Testing
Works; Cunningham,
M.R.; D.T. Wong; and
A.P. Barbee. “Self-
Presentation Dynam-
ics on Overt Integrity
Tests: Experimental
Studies of the Reid
Report.” Journal of
Applied Psychology 79
(1994), pp. 643–58;
and Ones, D.S., and
C. Viswesvaran. “The
Effects of Social Desir-
ability and Faking on
Personality and Integ-
rity Assessment for
Personnel Selection.”
Human Performance
11 (1998), pp. 245–69.
9.122 Ones, D.S.; S.
Dilchert; C. Viswes-
varan; and T.A. Judge.
Final PDF to printer
303C H A P T E R 9 Personality and Cultural Values
coL27660_ch09_263-303.indd 303 10/11/17 08:46 AM
“In Support of Per-
sonality Assessment
in Organizational
Settings.” Personnel
Psychology 60 (2007),
pp. 995–1027; and
Tett, R.P., and N.D.
Christiansen. “Person-
ality Tests at the Cross-
roads: A Response to
Morgeson, Campion,
Dipboye, Hollenbeck,
Murphy, and Schmitt
(2007).” Personnel
Psychology 60 (2007),
pp. 967–93.
9.123 Cortina, J.M.; N.B.
Goldstein; S.C. Payne;
H.K. Davison; and
S.W. Gilliland. “The
Incremental Validity
of Interview Scores
over and above
Cognitive Ability and
Conscientiousness
Scores.” Personnel
Psychology 53 (2000),
pp. 325–51.
9.124 Schmidt, F.L., and
J.E. Hunter. “Select
on Intelligence.” In
Blackwell Handbook of
Principles of Organiza-
tional Behavior, ed.
E.A. Locke. Malden,
MA: Blackwell, 2000,
pp. 3–14.
Final PDF to printer
coL27660_ch10_304-334.indd 304� 09/28/17��11:18�AM
10
LEARNING GOALS
10.1 What is ability?
10.2 What are the various types of cognitive ability?
10.3 What are the various types of emotional ability?
10.4 What are the various types of physical ability?
10.5 How does cognitive ability affect job performance and organizational commitment?
10.6 What steps can organizations take to hire people with high levels of cognitive ability?
After reading this chapter, you should be able to answer the following questions:
Ability
INDIVIDUAL
OUTCOMES
INDIVIDUAL
MECHANISMS
INDIVIDUAL
CHARACTERISTICS
ORGANIZATIONAL
MECHANISMS
Organizational
Culture
Organizational
Structure
Teams:
Processes &
Communication
Motivation
Trust, Justice,
& Ethics
Teams:
Characteristics &
Diversity
Learning &
Decision Making
Ability
Stress
Leadership:
Power &
Negotiation
Job
Satisfaction
Leadership:
Styles &
Behaviors
Organizational
Commitment
Job
Performance
GROUP
MECHANISMS
Personality &
Cultural Values
Ability
Final PDF to printer
coL27660_ch10_304-334.indd 305� 09/28/17��11:18�AM
I
f you go to the Federal Bureau of Investigation’s home
page, you’ll see links to lists of most wanted criminals, ter-
rorists, and victims of kidnappings and other missing per-
sons. You might also see an announcement regarding the
filing of charges against computer hackers, or a warning to
the public regarding a new type of investment fraud. In fact,
it won’t take you long to realize that the scope of the FBI’s
responsibilities is remarkably broad. The agency not only
provides assistance to municipal, state, federal, and interna-
tional law enforcement agencies, but it also conducts inves-
tigations into cybercrime, business crime, public corruption,
and terrorism. If that’s not enough, the FBI also runs programs
that provide assistance to crime victims and their families.
With all these responsibilities, it should not be surprising
to learn that there are many different types of jobs at the FBI.
The first job that might come to mind is that of the special
agent who does things like plan operations, interview sus-
pects, and piece clues together to solve crimes. However,
carrying out the agency’s mission also requires intelligence
analysts, surveillance specialists, and linguists. Additionally,
the FBI employs professionals involved in specialized fields
such as accounting and finance, communications, counsel-
ing, engineering, law, mathematics, and medicine. So, what
are the implications to the FBI of having employees involved
in so many different types of jobs?
Although the FBI seeks to hire personnel who have
similar values and regard for the role of justice in soci-
ety, the agency also needs people who possess the spe-
cific abilities required for the specific jobs that need to be
filled. To accomplish this, the FBI conducts extensive test-
ing of job-specific abilities during the hiring process. For
example, when hiring intelligence analysts, the FBI tests for
whether applicants possess strong reasoning abilities. This
is because intelligence analysts need to be able to identify
potential causes for a problem, critically evaluate hypoth-
eses regarding potential causes in light of available informa-
tion, and draw sound conclusions as to which hypothesis is
most likely. As another example, the FBI tests for perceptual
abilities of those interested in becoming surveillance spe-
cialists. This is because surveillance personnel need to pay
attention to details and recognize patterns in observations
of people and objects. The FBI’s hiring process is expensive
and time-consuming; however, it believes that the safety of
the United States and its citizens depends on having per-
sonnel with abilities that are tailored to the requirements of
specific jobs.
FEDERAL BUREAU OF INVESTIGATION
©Marmaduke St. John/Alamy
Final PDF to printer
306 C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 306� 09/28/17��11:18�AM
A B I L I T Y
The� topic� of� ability� is� probably� already� familiar� to� you.� This� is� because� “ability”� is� an� everyday�
word�in�our�language,�and�we’ve�all�developed�a�pretty�good�understanding�of�our�own�abilities.�
All�of�us�have�experience�doing�things�that�require�different�abilities,�and�we�received�feedback,�in�
one�form�or�another,�as�to�how�well�we�did.�So�knowing�that�you’re�already�familiar�with�the�topic�
of�ability,�why�would�we�write�an�entire�chapter�on�it�for�this�textbook?
Well�for�one�thing,�there�are�many�different�abilities,�some�of�which�are�important�but�might�
not�be�as�familiar�to�you.�Another�reason�we’ve�included�a�chapter�on�ability�is,�although�it�might�
seem�obvious�that�abilities�are�highly�related�to�effectiveness�in�jobs,�this�relationship�is�truer�in�
some�circumstances�than�in�others.�Finally,�it�may�be�useful�to�understand�how�organizations�use�
information�about�abilities�to�make�good�managerial�decisions.�Our�chapter�is�organized�around�
these�three�issues.
Ability�refers�to�the�relatively�stable�capabilities�people�have�to�perform�a�particular�range�of�
different�but�related�activities.1�In�contrast�to�skills,�which�can�be�improved�over�time�with�train-
ing�and�experience,�ability�is�relatively�stable.�Although�abilities�can�change�slowly�over�time�with�
instruction,�repeated�practice,�and�repetition,�the�level�of�a�given�ability�generally�limits�how�much�
a�person�can�improve,�even�with�the�best�training�in�the�world.�One�reason�for�this�stability�relates�
to�the�“nature�vs.�nurture”�question,�an�issue�that�has�been�much�debated�in�OB�(see�Chapter�9�on�
personality�and�cultural�values�for�more�discussion�of�such�issues).�So,�are�abilities�a�function�of�
our�genes,�or�are�they�something�we�develop�as�a�function�of�our�experiences�and�surroundings?
As� it� turns� out,� abilities� are� a� function� of� both� genes� and� the� environment,� and� the� amount�
attributable�to�each�source�depends�somewhat�on�the�nature�of�the�ability.�Consider�for�a�moment�
abilities� that� are� physical� in� nature.� Although� training� that� involves� weightlifting,� dancing,� and�
swimming�can�improve�a�person’s�strength,�equilibrium,�and�endurance,�there�are�limits�to�how�
much�improvement�is�possible.�As�an�example,�there�are�millions�of�people�who�take�golf�lessons�
and� practice� their� swing� for� countless� hours� on� a� driving� range,� yet� the� vast� majority� of� these�
people� could� never� compete� in� a� professional� golf� tournament� because� they� just� can’t� manage�
to�consistently�hit�that�little�white�ball�straight�or�far�enough.�As�an�example�of�abilities�that�are�
cognitive�in�nature,�you�likely�know�people�who,�even�if�they�went�to�the�best�schools�on�earth,�
would�have�great�difficulty�doing�well�in�jobs�such�as�theoretical�astrophysics�that�require�a�lot�of�
brainpower.
For�abilities�that�are�more�cognitive�in�nature,�such�as�those�we�mentioned�in�the�chapter�open-
ing,�it�appears�that�genes�and�the�environment�play�roughly�equal�roles.2�However,�differences�in�
cognitive�abilities�due�to�the�environ-
ment�become�less�apparent�as�people�
get�older,�and�this�may�be�especially�
true�for�the�effect�of�the�family�envi-
ronment.3� As� an� example,� though�
neglect,� abuse,� and� deprivation�
may� have� a� negative� impact� on� how�
children� fare� on� standardized� intel-
ligence� tests,� that� negative� impact�
does� not� tend� to� carry� over� into�
adulthood.� Beyond� the� family� situa-
tion,�there�are�some�other�factors�in�
the�environment�that�affect�cognitive�
ability.4�For�instance,�the�quantity�of�
schooling�may�be�important�because�
it� provides� opportunities� for� people�
to� develop� knowledge� and� critical�
thinking� skills.5� There’s� also� evi-
dence�that�our�choice�of�occupations�
10.1
What is ability?
Few people have the phys-
ical abilities necessary to
compete with professional
golfers such as Annika
Sorenstam, who is widely
considered to be the top
female golfer of all time.
©John Gress/AP Images
Final PDF to printer
307C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 307� 09/28/17��11:18�AM
may� influence� our� cognitive� abilities.� Complex� work� develops� and� exercises� our� minds,� which�
promotes�higher�performance�on�intelligence�tests.6�Finally,�certain�biological�factors�are�known�
to�affect�cognitive�abilities�negatively�during�childhood.�Examples�include�malnutrition,�exposure�
to� toxins� such� as� lead,� and� prenatal� exposure� to� alcohol.� In� fact,� over� the� last� century� average�
scores�on�standardized�intelligence�tests�have�risen�significantly�in�industrialized�countries�as�the�
quality�and�availability�of�education�and�health�factors�have�improved,�and�the�complexity�of�life�
has�increased.7
W H AT D O E S I T M E A N F O R A N E M P LOY E E
TO B E “A B L E ” ?
As�the�examples�in�the�previous�paragraphs�imply,�there�are�different�types�of�ability.�Whereas�
the� golf� example� refers� to� physical� ability,� the� theoretical� astrophysics� example� refers� to� cog-
nitive� ability.� In� fact,� there� are� many� different� facets� of� ability,� and� they� can� be� grouped� into�
subsets�by�considering�similarities�in�the�nature�of�the�activities�involved.�As�we’ll�talk�about�
in�the�sections�to�follow,�abilities�can�be�grouped�into�three�general�categories:�cognitive,�emo-
tional,�and�physical.�As�our�OB Internationally�feature�illustrates,�there�may�be�some�abilities�
that�do�not�fit�neatly�into�one�of�these�three�categories.�Nevertheless,�all�abilities�refer�to�what
people can do.�That’s�in�contrast�to�personality�(the�subject�of�Chapter�9),�which�refers�to�what
people are like�or�what people will likely do.�As�with�personality,�organizational�personnel�and�
hiring�systems�focus�on�finding�applicants�who�possess�abilities�that�match�the�requirements�
of�a�given�job.
C O G N I T I V E A B I L I T Y
Cognitive ability�refers�to�capabilities�related�to�the�acquisition�and�application�of�knowledge�in�
problem�solving.8�Cognitive�abilities�are�very�relevant�in�the�jobs�most�of�you�will�be�involved�
with—that� is,� work� involving� the� use� of� information� to� make� decisions� and� solve� problems.�
Chances�are�good�that�your�cognitive�abilities�have�been�tested�several�times�throughout�your�
life.�In�fact,�each�year�millions�of�children�in�the�United�States�take�standardized�tests�of�intel-
ligence�at�some�point�during�elementary�school,�middle�school,�or�high�school.9�Although�you�
might�not�remember�taking�one�of�these,�you�probably�remember�taking�the�Scholastic�Assess-
ment�Test�(SAT).�And�though�you�probably�thought�about�the�SAT�as�a�test�that�would�have�a�
major�impact�only�on�where�you�could�and�could�not�go�to�college,�the�SAT�is�actually�a�test�of�
cognitive�ability.
You�might�also�remember�that�the�SAT�included�a�variety�of�different�questions;�some�tested�
your�ability�to�do�math�problems,�whereas�other�questions�assessed�your�ability�to�complete�sen-
tences�and�make�analogies.�In�fact,�the�different�types�of�questions�reflect�specific�types�of�cog-
nitive�ability�that�contribute�to�effectiveness�on�intellectual�tasks.�Table�10-1�lists�many�of�these�
cognitive�ability�types,�along�with�their�specific�facets�and�some�jobs�in�which�they’re�thought�to�
be�important.�The�definitions�and�information�in�this�table,�as�well�as�that�discussed�in�the�follow-
ing�sections,�comes�from�research�that�produced�a�public�database�called�O*NET,�which�outlines�
requirements�of�employees�in�different�types�of�jobs�and�occupations.10
VERBAL ABILITY Verbal ability�refers�to�various�capabilities�associated�with�understanding�and�
expressing�oral�and�written�communication.�Oral comprehension�is�the�ability�to�understand�spo-
ken�words�and�sentences,�and�written comprehension�is�the�ability�to�understand�written�words�and�
sentences.�Although�these�two�aspects�of�verbal�ability�would�seem�highly�related—that�is,�people�
who� have� high� oral� comprehension� would� tend� to� have� high� written� comprehension,� and� vice�
versa—it’s�not�difficult�to�think�of�people�who�might�be�high�on�one�ability�but�low�on�the�other.�
As�an�example,�it’s�been�reported�that�as�a�result�of�his�dyslexia,�actor�Tom�Cruise�has�poor�writ-
ten�comprehension�and�can�learn�his�lines�only�after�listening�to�them�on�tape.11
10.2
What are the various types
of cognitive ability?
Final PDF to printer
308 C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 308� 09/28/17��11:18�AM
What� makes� some� people� more� or� less� effective� in� culturally� diverse� organizational� contexts?�
According�to�some,�the�answer�to�this�question�is�cultural intelligence,�or�the�ability�to�discern�dif-
ferences�among�people�that�are�due�to�culture�and�to�understand�what�these�differences�mean�in�
terms�of�the�way�people�tend�to�think�and�behave�in�different�situations.�There�are�three�sources�
of�cultural�intelligence�that�correspond�to�the�“head,”�“body,”�and�“heart.”�The�source�of�cultural�
intelligence�that�corresponds�to�the�head�is�called�cognitive cultural intelligence.�This�concept�refers�
to�the�ability�to�sense�differences�among�people�due�to�culture�and�to�use�this�knowledge�in�plan-
ning�how�to�interact�with�others�in�anticipation�of�a�cross-cultural�encounter.�The�source�of�cul-
tural�intelligence�that�corresponds�to�the�body�is�called�physical cultural intelligence,�which�refers�
to�the�ability�to�adapt�one’s�behavior�when�a�cultural�encounter�requires�it.�Finally,�the�source�of�
cultural� intelligence� that� corresponds� to� the� heart� is� called� emotional cultural intelligence.� This�
concept�refers�to�the�level�of�effort�and�persistence�an�individual�exerts�when�trying�to�understand�
and�adapt�to�new�cultures.
Understanding� cultural� intelligence� may� be� useful� because� it’s� an� ability� that� can� be�
improved� through� training.� A� training� program� could� begin� with� an� assessment� to� identify�
sources� of� cultural� intelligence� that� may� be� weak.� Consider,� for� example,� an� individual� who�
is�very�knowledgeable�about�the�customs�and�norms�of�another�culture�and�is�very�willing�to�
learn�more,�but�who�just�can’t�alter�her�body�language�and�eye�contact�so�that�it’s�appropriate�
for�the�other�culture.�In�this�particular�case,�the�aim�of�the�training�would�be�to�improve�physi-
cal� cultural� intelligence.� The� individual� might� be� asked� to� study� video� that� contrasts� correct�
and�incorrect�body�language�and�eye�contact.�The�individual�might�also�be�asked�to�engage�in�
role-playing�exercises�to�model�the�appropriate�behavior�and�receive�feedback�from�an�expert.�
Finally,�the�individual�might�be�asked�to�take�acting�classes.�Although�an�organization�may�rely�
on� improvements� in� employee� cultural� intelligence� that� result� from� exposure� to� new� cultures�
and�cross-cultural�experiences,�the�costs�of�poor�performance�in�cross-cultural�contexts�can�be�
significant�for�both�the�employee�and�the�organization,�and�therefore,�training�on�cultural�intel-
ligence�may�have�great�utility.�
OB INTERNATIONALLY
Sources:� P.C.� Earley� and� S.� Ang,� Cultural Intelligence: Individual Interactions across Cultures� (Stanford,� CA:� Stanford�
University� Press,� 2003);� P.C.� Earley� and� E.� Mosakowski,� “Cultural� Intelligence,”� Harvard Business Review� 82� (2004),��
pp.�139–46;�L.�Imai�and�M.J.�Gelfand,�“The�Culturally�Intelligent�Negotiator:�The�Impact�of�Cultural�Intelligence�(CQ)�
on�Negotiation�Sequences�and�Outcomes,”�Organizational Behavior and Human Decision Processes�112�(2010),�pp.�83–98;�
and�M.M.�Chao,�R.�Takeuchi,�and�J.L.�Farh.�“Enhancing�Cultural�Intelligence:�The�Roles�of�Implicit�Culture�Beliefs�and�
Adjustment.”�Personnel Psychology�70�(2017),�pp.�257–92.�
Two� other� verbal� abilities� are� oral expression,� which� refers� to� the� ability� to� communicate�
ideas� by� speaking,� and� written expression,� which� refers� to� the� ability� to� communicate� ideas� in�
writing.�Again,�though�it�might�seem�that�these�abilities�should�be�highly�related,�this�is�not�nec-
essarily�so.�You�may�have�taken�a�class�with�a�professor�who�had�authored�several�well-regarded�
books� and� articles,� but� at� the� same� time,� had� a� very� difficult� time� expressing� concepts� and�
theories�to�students.�Although�there�could�be�many�reasons�this�might�happen,�one�explanation�
is�that�the�professor�had�high�ability�in�terms�of�written�expression�but�low�ability�in�terms�of�
oral�expression.
Generally�speaking,�verbal�abilities�are�most�important�in�jobs�in�which�effectiveness�depends�
on�understanding�and�communicating�ideas�and�information�to�others.�As�an�example,�the�effec-
tiveness�of�business�executives�depends�on�their�ability�to�consider�information�from�reports�and�
other�executives�and�staff,�as�well�as�their�ability�to�articulate�a�vision�and�strategy�that�promotes�
employee� understanding.� As� another� example,� consider� how� important� the� verbal� abilities� of� a�
Final PDF to printer
309C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 309� 09/28/17��11:18�AM
TABLE 10-1 Types and Facets of Cognitive Ability
TYPE MORE SPECIFIC FACET JOBS WHERE RELEVANT
Verbal Oral and Written Comprehension: Understand-
ing written and spoken words and sentences
Oral and Written Expression: Communicating
ideas by speaking or writing so that others can
understand
Business executives;
police, fire, and ambu-
lance dispatchers; clinical
psychologists
Quantitative Number Facility: Performing basic math opera-
tions quickly and correctly
Mathematical Reasoning: Selecting the right
method or formula to solve a problem
Treasurers; financial manag-
ers; mathematical techni-
cians; statisticians
Reasoning Problem Sensitivity: Understanding when there
is a problem or when something may go wrong
Deductive Reasoning: Applying general rules to
specific problems
Inductive Reasoning: Combining specific infor-
mation to form general conclusions
Originality: Developing new ideas
Anesthesiologists; surgeons;
business executives; fire
inspectors; judges; police
detectives; forensic scien-
tists; cartoonists; designers
Spatial Spatial Orientation: Knowing where one is rela-
tive to objects in the environment
Visualization: Imagining how something will
look after it has been rearranged
Pilots; drivers; boat captains;
photographers; set design-
ers; sketch artists
Perceptual Speed and Flexibility of Closure: Making sense
of information and finding patterns
Perceptual Speed: Comparing information or
objects with remembered information or objects
Musicians; firefighters; police
officers; pilots; mail clerks;
inspectors
Sources:�Adapted�from�E.A.�Fleishman,�D.P.�Costanza,�and�J.�Marshall-Mies,�“Abilities,”�in�An Occupational Information
System for the 21st�Century: The Development of O*NET,�ed.�N.G.�Peterson,�M.D.�Mumford,�W.C.�Borman,�P.R.�Jeanneret,�
and� E.A.� Fleishman� (Washington,� DC:� American� Psychological� Association,� 1999),� pp.� 175–95;� and� O*NET� Website,�
The O*NET Content Model: Detailed Outline With Descriptions,� http://www.onetcenter.org/content.html/1.a?d=1#cm_1.a�
(accessed�May�20,�2009).
Tom Cruise has dyslexia,
and he struggles with
written comprehension.
He learns the lines for his
movies by listening to them
on tape.
©Universal Pictures/Photofest
9-1-1� dispatcher� might� be� if� a�
loved�one�suddenly�became�ill�
and�stopped�breathing.
QUANTITATIVE ABILITY �
Quantitative ability�refers�to�two�
types�of�mathematical�capabili-
ties.�The�first�is�number facility,�
which� is� the� capability� to� do�
simple� math� operations� (add-
ing,� subtracting,� multiplying,�
and� dividing).� The� second� is�
mathematical reasoning,� which�
refers� to� the� ability� to� choose�
and� apply� formulas� to� solve�
problems�that�involve�numbers.�
If� you� think� back� to� the� SAT,�
Final PDF to printer
310 C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 310� 09/28/17��11:18�AM
you�can�probably�remember�problems�such�as�the�following:�“There�were�two�trains�800�miles�apart,�
and�they�were�traveling�toward�each�other�on�the�same�track.�The�first�train�began�traveling�at�noon�
and�averaged�45�miles�per�hour.�The�second�train�started�off�two�hours�later.�What�speed�did�the�sec-
ond�train�average�if�the�two�trains�smashed�into�each�other�at�10:00�p.m.�of�the�same�day?”
Although�number�facility�may�be�necessary�to�solve�this�problem,�mathematical�reasoning�is�
crucial�because�the�test�taker�needs�to�know�which�formulas�to�apply.�Although�most�of�us�wish�
that�problems�like�this�would�be�limited�to�test-taking�contexts�(especially�this�particular�problem),�
there�are�countless�situations�in�which�quantitative�abilities�are�important.�For�example,�consider�
the� importance� of� quantitative� ability� in� jobs� involving� statistics,� accounting,� and� engineering.�
Quantitative� abilities� may� be� important� in� less� complex,� lower-level� jobs� as� well.� Have� you� ever�
been�at�a�fast-food�restaurant�or�convenience�store�when�the�cash�register�wasn’t�working�and�the�
clerk�couldn’t�manage�to�count�out�change�correctly�or�quickly?�If�you�have,�you�witnessed�a�very�
good�example�of�low�quantitative�ability,�and�perhaps�some�very�annoyed�customers�as�well.�As�
another�example�of�a�job�that�requires�high�quantitative�ability,�see�our�OB on Screen�feature.
REASONING ABILITY Reasoning ability�is�actually�a�diverse�set�of�abilities�associated�with�sens-
ing�and�solving�problems�using�insight,�rules,�and�logic.�The�first�reasoning�ability,�problem sensi-
tivity,�is�the�ability�to�sense�that�there’s�a�problem�right�now�or�likely�to�be�one�in�the�near�future.�
In�essence,�problem�sensitivity�is�the�ability�to�sense�that�things�just�aren’t�right,�or�are�not�track-
ing�correctly�or�as�expected.�Anesthesiology�is�a�great�example�of�a�job�for�which�problem�sensitiv-
ity�is�crucial.�Before�surgeries,�anesthesiologists�give�drugs�to�patients�so�that�surgical�procedures�
can�take�place�without�the�patients�experiencing�pain.�However,�during�the�surgery,�patients�can�
have�negative�reactions�to�the�drugs�that�might�result�in�the�loss�of�life.�So�the�ability�of�the�anes-
thesiologist�to�sense�when�something�is�wrong�even�before�the�problem�is�fully�apparent�can�be�a�
life-or-death�matter.
A�second�type�of�reasoning�ability�is�called�deductive reasoning.�This�ability�refers�to�the�use�
of� general� rules� or� hypotheses� as� a� starting� point� to� solve� a� problem.� Individuals� who� possess�
high�deductive�reasoning�ability�are�able�reach�effective�conclusions�by�comparing�how�available�
information�fits�with�an�existing�rule�or�hypothesis.�When�information�is�consistent�with�the�rule�
or�hypothesis,�the�solution�follows�accordingly.�When�information�is�not�consistent�with�a�rule�or�
hypothesis,�then�the�information�is�considered�in�light�of�a�different�rule�or�hypothesis,�and�the�
process�begins�anew.�Judges�need�to�have�strong�deductive�reasoning�abilities�because�their�job�
involves�the�consideration�of�facts�in�light�of�existing�rules�of�law�to�reach�verdicts.�
In�contrast,�inductive reasoning�refers�to�the�ability�to�consider�several�specific�pieces�of�infor-
mation�to�generate�a�hypothesis�and�a�plausible�solution.�Individuals�with�high�inductive�reasoning�
ability�are�able�to�produce�solutions�to�problems�by�synthesizing�available�data�and�information.�
Inductive�reasoning�is�required�of�police�detectives�and�crime�scene�investigators�who�must�con-
sider�things�like�tire�tracks,�blood�spatter,�fibers,�and�fingerprints�to�reach�conclusions�about�likely�
perpetrators�of�crimes�and�causes�of�death.
Finally,�originality�refers�to�the�ability�to�develop�clever�and�novel�ways�to�solve�problems.�Larry�
Page�and�Sergey�Brin,�the�two�founders�of�Google,�provide�good�examples�of�originality.�They�not�
only�developed�the�Internet�search�software�that�gave�Google�a�competitive�advantage,�and�cre-
ated� the� first� completely� new� advertising� medium� in� nearly� half� a� century,� but� they� also� refuse�
to�follow�conventional�wisdom�when�it�comes�to�managerial�practices�and�business�decisions.12�
Clearly,�originality�is�important�in�a�wide�variety�of�occupations,�but�in�some�jobs,�originality�is�
the�most�critical�ability.�For�example,�a�cartoonist,�designer,�writer,�or�advertising�executive�with-
out�originality�would�find�it�difficult�to�be�successful.
SPATIAL ABILITY There� are� two� main� types� of� spatial ability,� or� capabilities� associated� with�
visual�and�mental�representation�and�manipulation�of�objects�in�space.�The�first�is�called�spatial
orientation,�which�refers�to�a�good�understanding�of�where�one�is�relative�to�other�things�in�the�
environment.�A�tourist�with�high�spatial�organization�would�have�no�trouble�finding�her�way�back�
to�her�hotel�on�foot�after�a�long�day�of�sightseeing,�even�without�a�map�or�help�from�anyone�on�the�
street.�The�second�spatial�ability�is�called�visualization,�which�is�the�ability�to�imagine�how�sepa-
rate�things�will�look�if�they�were�put�together�in�a�particular�way.�If�you’re�good�at�imagining�how�
a�room�would�look�if�it�were�rearranged,�or�if�your�friends�are�impressed�that�you�can�buy�things�
that�go�together�well,�chances�are�that�you�would�score�high�on�visualization.
Final PDF to printer
311C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 311� 09/28/17��11:18�AM
OB ON SCREEN
HIDDEN FIGURES
What I’m asking you to do, what I’m asking everyone in that room, all my geniuses, is to look
beyond the numbers, to look around them, through them, to ask the questions we don’t even
know how to ask, at math that doesn’t yet exist, because without it, we’re not going anywhere.
With�those�words,�head�of�NASA’s�Space�Task�Group,�Al�Harrison�(Kevin�Costner)�tries�to�con-
vey�a�sense�of�urgency�to�his�group�of�mathematicians,�in�the�movie�Hidden Figures�(Dir.�Theodore��
Melfi,�Levantine�Films,�2017).�In�1961�the�United�States�was�in�a�race�with�the�Soviet�Union�to�
establish�supremacy�in�space.�The�Soviets�had�beaten�the�United�States�in�getting�the�first�satel-
lite�and�human�to�orbit�the�earth,�and�in�order�to�avoid�falling�further�behind,�Harrison�needed�
his�mathematicians�to�figure�out�how�to�calculate�the�trajectory�of�a�spacecraft�that’s�subject�to�
changing�forces�of�gravity.�Electronic�computers�were�in�their�infancy,�so�NASA�relied�upon�on�
a� team� of� math� gurus� to� apply� mathematical� theories� and� formulas,� and� to� perform� large� num-
bers�of�calculations�by�hand.�Fortunately,�Katherine�Johnson�(Taraji�Henson),�an�extraordinarily�
gifted�NASA�employee,�had�just�joined�Harrison’s�group�of�human�“computers.”
Throughout� the� film,� there� are� examples� of� Katherine’s� quantitative� abilities.� In� one� scene,� for�
example,�Katherine�is�invited�by�Harrison�to�a�meeting�of�high-level�NASA�employees�who�were�try-
ing�to�solve�problems�related�to�the�launch�and�recovery�of�Friendship�7.�Astronaut�John�Glenn,�who�
was�slated�to�orbit�the�earth�in�this�spacecraft,�was�particularly�impressed�when�Katherine�stepped�up�
to�a�blackboard�with�a�piece�of�chalk�and�worked�through�a�long�series�of�equations�to�produce�the�
latitude�and�longitude�where�he�would�land.�Glenn’s�trust�in�Katherine’s�quantitative�abilities�was�evi-
dent�later�in�the�film�when�he�refused�to�launch�in�Friendship�7�until�she�double�checked�calculations�
performed�by�others�and�a�new�IBM�computer.�What�makes�this�true�story�even�more�remarkable�is�
that�Katherine�Johnson�is�an�African�American�who�worked�in�an�era�of�racial�segregation�and�male�
dominance�in�the�sciences�and�mathematics.�Her�accomplishments�at�NASA�not�only�speak�to�her�
remarkable�quantitative�abilities,�but�also�her�amazing�determination�and�perseverance.
©Moviestore collection Ltd/Alamy
PERCEPTUAL ABILITY Perceptual ability� refers� to� being� able� to� perceive,� understand,� and� recall�
patterns�of�information.�More�specifically,�speed and flexibility of closure�refers�to�being�able�to�pick�out�
a�pattern�of�information�quickly�in�the�presence�of�distracting�information,�even�without�all�the�infor-
mation�present.�People�who�work�for�the�Central�Intelligence�Agency�likely�need�speed�and�flexibility�
of�closure�to�break�secret�codes.�Related�to�this�ability�is�perceptual speed,�which�refers�to�being�able�to�
Final PDF to printer
312 C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 312� 09/28/17��11:18�AM
examine�and�compare�numbers,�letters,�
and�objects�quickly.�If�you�can�go�into�
the� produce� section� of� a� supermarket�
and� choose� the� best� tomatoes� faster�
than� the� people� around� you,� chances�
are� you� have� high� perceptual� speed.�
Effectiveness� in� jobs� in� which� people�
need� to� proofread� documents,� sort�
things,�or�categorize�objects�depends�a�
lot�on�perceptual�speed.
GENERAL COGNITIVE ABILITY �
If� you’ve� read� the� preceding� sections�
carefully,�you�probably�thought�about�
where�you�stand�on�the�different�types�
of�cognitive�abilities.�In�doing�so,�you�
may�have�also�reached�the�conclusion�
that� you’re� higher� on� some� of� these�
abilities� and� lower� on� others.� Maybe�
you�think�of�yourself�as�being�smart�in�
verbal�abilities�but�not�as�smart�in�quantitative�abilities.�In�fact,�most�people�score�more�similarly�
across�their�cognitive�abilities�than�they�realize.�People�who�are�higher�than�average�on�verbal�abili-
ties�also�tend�to�be�higher�than�average�on�reasoning,�quantitative,�spatial,�and�perceptual�abilities,�
and� people� who� are� lower� than� average� on� verbal� abilities� tend� to� be� lower� than� average� on� the�
other�abilities.�Although�this�consistency�might�not�apply�to�everyone,�it�applies�often�enough�that�
researchers�have�been�trying�to�understand�why�this�occurs�for�well�over�100�years.13
The�most�popular�explanation�for�the�consistency�in�the�levels�of�different�cognitive�abilities�
within�people�is�that�there’s�a�general cognitive ability—sometimes�called�the�g-factor�or�simply�g—
that� underlies� or� causes� all� of� the� more� specific� cognitive� abilities� we’ve� discussed� so� far.14� To�
understand�what�this�means�more�clearly,�consider�the�diagram�in�Figure�10-1�that�depicts�general�
cognitive�ability�as�the�area�in�common�across�the�more�specific�cognitive�abilities�that�we’ve�dis-
cussed.�This�overlap�exists�because�each�of�the�specific�abilities�depends�somewhat�on�the�brain’s�
ability�to�process�information�effectively.�So,�because�some�brains�are�capable�of�processing�infor-
mation�more�effectively�than�others,�some�people�tend�to�score�higher�across�the�specific�abilities,�
whereas�others�tend�to�score�lower.
You’re� probably� familiar� with� the� intelligence� quotient,� which� is� known� as� IQ.� Well,� IQ� was�
something� originally� used� in� educational� contexts� to� diagnose� learning� disabilities,� and� accord-
ingly,�tests�to�measure�IQ�were�developed�using�questions�with�which�students�with�learning�dis-
abilities�might�struggle.�IQ�tests�were�then�scaled�as�a�percentage�that�indicated�a�person’s�mental�
age�relative�to�his�or�her�chronological�age.�IQ�scores�lower�than�100�were�interpreted�as�indicating�
a�potential�learning�or�educational�deficiency,�whereas�scores�higher�than�100�were�interpreted�as�
indicating�that�someone�was�particularly�bright�for�his�or�her�age.�However,�it�turns�out�that�IQ�
tests�and�tests�of�general�cognitive�ability�are�often�quite�similar�in�terms�of�the�types�of�questions�
included,�and�more�importantly,�scores�on�the�two�types�of�tests�say�pretty�much�the�same�thing�
about�the�people�who�take�them.15�
Does� a� high� IQ� boost� effectiveness� of� people� in� work� contexts?� We’ll� discuss� this� matter� in�
some�detail�later,�but�it’s�worth�pointing�out�here�that�IQ�is�associated�with�outcomes�that�are�very�
relevant� to� you,� your� employer,� and� perhaps� society� in� general.16� For� example,� researchers� have�
shown�that�individuals�with�higher�IQ�tend�to�be�healthier�and�economically�better�off,�and�as�a�
consequence�of�these�two�factors,�they�tend�to�feel�happier�and�more�satisfied�with�their�lives.17�
They�also�tend�to�have�fewer�accidents�that�cause�injury,�less�cardiovascular�disease,�and�not�sur-
prisingly�given�the�first�two�associations,�they�also�tend�to�live�longer.18�Although�the�explanation�
for�these�relationships�is�not�altogether�clear,�it’s�likely�that�people�with�higher�IQ�become�more�
knowledgeable�about�the�prevention�and�management�of�injury�and�disease,�and�in�addition,�may�
have� advantages� with� respect� to� the� availability� of� health� care� and� knowledge� that� helps� them�
adapt�to�challenging�circumstances.19
Pilots flying in conditions
where there’s poor visibility
have to rely on various
instruments and their spa-
tial ability to visualize their
absolute position and, just
as important, their position
relative to other objects,
some of which are also
moving.
©Steve Bloom/Getty Images
Final PDF to printer
313C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 313� 09/28/17��11:18�AM
E M OT I O N A L A B I L I T Y
Consider�the�case�of�Dick�Snyder,�who�headed�the�publishing�firm�Simon�&�Schuster.�He�seemed�
unable�to�control�or�perceive�his�emotions,�and�he�regularly�blew�up�at�and�humiliated�his�subordi-
nates.20�To�make�matters�worse,�he�didn’t�understand�that�his�lack�of�emotional�control�and�under-
standing�was�having�a�negative�impact�on�his�team,�and�he�eventually�was�fired,�despite�leading�
his�company�to�higher�levels�of�earnings.�In�this�section�of�the�chapter,�we�describe�the�concept�of�
emotional�ability—precisely�the�type�of�ability�that�Dick�Snyder�appears�to�lack.
So�how�is�emotional�ability�different�than�cognitive�ability?�Most�of�us�know�someone�who�is�
very�smart�from�a�“cognitive�ability”�or�IQ�standpoint,�but�at�the�same�time,�the�person�just�can’t�
manage�to�be�effective�in�real-world�situations�that�involve�other�people.�As�an�example,�you�may�
have�played�Trivial Pursuit�with�a�group�of�friends�and�found�someone�at�the�table�who�could�not�
only�answer�the�majority�of�the�questions�correctly�but�also�managed�to�say�odd�or�inappropriate�
things�throughout�the�game.�You�may�also�know�someone�who�doesn’t�seem�very�“book�smart”�
but�always�seems�able�to�get�things�done�and�says�the�right�things�at�the�right�time.�In�the�context�
of�the�same�Trivial Pursuit�game,�such�a�person�might�have�answered�most�of�the�game�questions�
incorrectly�but,�sensing�how�uncomfortable�and�angry�people�were�becoming�with�the�annoying�
player,�made�jokes�to�lighten�things�up.
In� fact,� for� several� decades� now,� researchers� have� been� investigating� whether� there’s� a� type�
of� ability� that� influences� the� degree� to� which� people� tend� to� be� effective� in� social� situations,�
regardless�of�their�level�of�cognitive�abilities.21�Although�there�has�been�some�debate�among�these�
researchers,22�many�believe�now�that�there’s�a�human�ability�that�affects�social�functioning,�called�
emotional intelligence.23�Emotional�intelligence�is�defined�in�terms�of�a�set�of�distinct�but�related�
abilities,�which�we�describe�next.24�
SELF-AWARENESS The� first� type� of� emotional� intelligence� is� self-awareness,� or� the� appraisal�
and�expression�of�emotions�in�oneself.�This�facet�refers�to�the�ability�of�an�individual�to�under-
stand�the�types�of�emotions�he�or�she�is�experiencing,�the�willingness�to�acknowledge�them,�and�
the�capability�to�express�them�naturally.25�As�an�example,�someone�who�is�low�in�this�aspect�of�
emotional�intelligence�might�not�admit�to�himself�or�show�anyone�else�that�he’s�feeling�somewhat�
anxious�during�the�first�few�days�of�a�new�job.�These�types�of�emotions�are�perfectly�natural�in�a�
new�job�context,�and�ignoring�them�might�increase�the�stress�of�the�situation.�Ignoring�those�emo-
tions�might�also�send�the�wrong�signal�to�new�colleagues,�who�might�wonder,�“Why�isn’t�the�new�
hire�more�excited�about�working�for�us?”
FIGURE 10-1 The “g-factor”
Source:� Adapted� from� J.J.� Johnson� and� J.B.� Cullen,� “Trust� in� Cross-Cultural� Relationships,”� in� Blackwell Handbook of
Cross-Cultural Management,�ed.�M.J.�Gannon�and�K.L.�Newman�(Malden,�MA:�Blackwell,�2002),�pp.�335–60.
Verbal
Spatial
Perceptual Reasoning
Quant-
itative
g
Final PDF to printer
314 C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 314� 09/28/17��11:18�AM
OTHER AWARENESS The� second� facet� of� emotional� intelligence� is� called� other awareness,� or�
the�appraisal�and�recognition�of�emotion�in�others.26�As�the�name�of�this�facet�implies,�it�refers�to�
a�person’s�ability�to�recognize�and�understand�the�emotions�that�other�people�are�feeling.�People�
who�are�high�in�this�aspect�of�emotional�intelligence�are�not�only�sensitive�to�the�feelings�of�others�
but�also�can�anticipate�the�emotions�that�people�will�experience�in�different�situations.�In�contrast,�
people�who�are�low�in�this�aspect�of�emotional�intelligence�do�not�effectively�sense�the�emotions�
that�others�are�experiencing,�and�if�the�emotions�are�negative,�this�inability�could�result�in�the�per-
son�doing�something�that�worsens�the�situation.�As�an�example,�have�you�ever�had�a�professor�who�
couldn’t�sense�that�students�in�class�didn’t�understand�the�material�being�presented�in�a�lecture?�
When�that�professor�continued�to�press�on�with�the�slides,�oblivious�to�the�fact�that�the�students�
were�becoming�even�more�confused,�it�was�poor�other�awareness�in�action.�As�another�example,�
an�accountant�at�Chemical�Bank�in�New�York�recalls�that�his�boss�asked�him�to�refine�his�skills�in�
this�aspect�of�emotional�intelligence.27�Although�he�was�a�good�accountant,�he�needed�help�show-
ing�interest�in�other�people’s�emotions�so�that�discussions�with�clients�were�less�contentious.�As�a�
final�example,�the�CEO�of�Forte�Hotels,�a�chain�of�luxury�hotels�in�Europe,�prizes�employees�who�
have�the�ability�to�understand�the�customer’s�emotions�so�they�can�react�accordingly.�“I�know�the�
most�amazing�waitress,”�he�says.�“She�can�look�at�a�counterful�of�people�eating�breakfast�and�tell�
immediately�who�wants�chatting�up,�who�wants�to�be�left�alone.�Uncanny.�Just�uncanny.”28
EMOTION REGULATION The�third�facet�of�emotional�intelligence,�emotion regulation,�refers�to�
being� able� to� recover� quickly� from� emotional� experiences.29� As� an� example� of� this� aspect� of� emo-
tional�intelligence,�consider�the�possible�responses�of�someone�on�his�way�to�work,�who�is�driving�
just�below�the�speed�limit�in�his�brand�new�Toyota�Prius�who�gets�cut�off�by�an�aggressive�driver�who,�
as�she�passes�by,�throws�a�half-filled�plastic�bottle�of�Mountain�Dew�out�the�window�and�shouts�an�
obscenity.�If�the�Prius�driver�can�regulate�his�emotions�effectively,�he�recovers�quickly�from�the�initial�
anger�and�shock�of�the�encounter.�He�would�be�able�to�get�back�to�whatever�he�was�listening�to�on�
the�radio,�and�by�the�time�he�got�to�work,�the�incident�would�likely�be�all�but�forgotten.�However,�
if� this� person� were� not� able� to� regulate� his� emotions� effectively,� he� might� lose� his� temper,� tailgate�
the�aggressive�driver,�and�then�ram�his�new�Prius�into�her�vehicle�at�the�next�stoplight.�We�hope�it’s�
obvious�to�you�that�the�former�response�is�much�more�appropriate�than�the�latter,�which�could�prove�
quite�costly�to�the�individual.�Although�this�example�highlights�the�importance�of�regulating�negative�
emotions,�we�should�also�point�out�that�this�aspect�of�emotional�intelligence�also�applies�to�positive�
emotions.�Consider,�for�example,�the�response�of�someone�who�is�told�that�he’s�about�to�receive�a�
significant�pay�raise.�If�this�person�is�unable�to�regulate�his�own�emotions�effectively,�he�might�feel�
joyous�and�giddy�the�rest�of�the�day,�flashing�jazz�hands�to�his�coworkers.�As�a�consequence,�he’s�not�
able�to�accomplish�any�more�work�that�day,�never�mind�alienating�everyone�around�him.
USE OF EMOTIONS The�fourth�aspect�of�emotional�intelligence�is�the�use of emotions.30�This�
capability�reflects�the�degree�to�which�people�can�harness�emotions�and�employ�them�to�improve�
their�chances�of�being�successful�in�whatever�they’re�seeking�to�do.�For�example,�researchers�have�
shown�that�when�employees�who�face�novel�circumstances�harness�their�positive�emotions,�they�
can�produce�solutions�that�are�more�
creative.31�To�understand�this�facet�of�
emotional� intelligence� more� clearly,�
consider�a�writer�who’s�struggling�to�
finish� a� book� but� is� under� a� serious�
time�crunch�because�of�the�contract�
with�the�publisher.�If�the�writer�were�
high�in�this�aspect�of�emotional�intel-
ligence,�she�would�likely�psych�herself�
up� for� the� challenge� and� encourage�
herself� to� work� hard� through� any�
bouts� of� writer’s� block.� In� contrast,�
if�the�writer�were�low�in�this�aspect�
of�emotional�intelligence,�she�might�
begin�to�doubt�her�competence�as�a�
10.3
What are the various types
of emotional ability?
“Other awareness” is one
aspect of emotional intel-
ligence that allows us to
empathize with others and
understand their feelings.
©Digital Vision/Getty Images
Final PDF to printer
315C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 315� 09/28/17��11:18�AM
writer� and� think� about� different� things� she� could� do� with� her� life.� Because� these� behaviors� will�
slow�progress�on�the�book�even�further,�the�number�and�intensity�of�self-defeating�thoughts�might�
increase,�and�ultimately,�the�writer�might�withdraw�from�the�task�entirely.
APPLYING EMOTIONAL INTELLIGENCE Although�you�may�appreciate�how�emotional�intel-
ligence�can�be�relevant�to�effectiveness�in�a�variety�of�interpersonal�situations,�you�might�be�won-
dering�whether�knowledge�of�emotional�intelligence�can�be�useful�to�managers�in�their�quest�to�
make�their�organizations�more�effective.�It�turns�out�there’s�growing�evidence�that�the�answer�to�
this�question�is�“yes,”�albeit�with�a�few�caveats.32
As� one� example� of� the� usefulness� of� emotional� intelligence,� the� U.S.� Air� Force� found� that�
recruiters�who�were�high�in�some�aspects�of�emotional�intelligence�were�three�times�more�likely�
to� meet� recruiting� quotas� than� recruiters� who� scored� lower� in� the� same� aspects� of� emotional�
intelligence.33�Recruiters�with�high�emotional�intelligence�were�more�effective�because�they�pro-
jected�positive�emotions�and�could�quickly�sense�and�appropriately�respond�to�recruits’�concerns.�
Because� these� capabilities� made� recruiting� easier,� there� was� less� pressure� to� meet� performance�
quotas,�which�translated�into�fewer�hours�at�the�office,�higher�satisfaction,�and�ultimately�higher�
retention.�In�fact,�after�the�Air�Force�began�requiring�new�recruiters�to�pass�an�emotional�intel-
ligence�test,�turnover�among�new�recruiters�dropped�from�25�percent�to�2�percent.�Given�that,�on�
average,�it�costs�about�$30,000�to�train�a�new�recruiter,�this�lower�turnover�translated�into�about�
$2.75�million�in�savings�a�year.
As� a� second� example� of� the� usefulness� of� emotional� intelligence,� Paris–based� L’Oréal,� the�
world’s�largest�manufacturer�of�cosmetics�and�beauty�products,�was�interested�in�the�use�of�emo-
tional� intelligence� in� the� hiring� of� sales� agents� who� could� perform� their� jobs� more� effectively.34�
How�well�did�this�idea�work�out�for�the�company?�The�sales�agents�who�were�hired�based�mainly�
on�their�emotional�intelligence�scores�had�sales�that�were�$91,370�greater�than�agents�who�were�
hired�on�the�basis�of�other�information.�The�company�also�found�that�the�agents�who�were�selected�
on�the�basis�of�their�emotional�intelligence�scores�were�63�percent�less�likely�to�quit�during�their�
first�year�as�compared�to�the�other�agents.�Sales�agents�with�high�emotional�intelligence�were�able�
to�better�understand�client�needs,�and�because�this�results�in�higher�performance�and�less�frustra-
tion,�these�agents�tend�to�stay�with�the�company�longer.
The�two�previous�examples�illustrate�the�usefulness�of�staffing�and�training�practices�based�on�
emotional� intelligence.� In� fact,� there’s� growing� evidence� from� researchers� that� emotional� intel-
ligence�may�have�an�important�impact�on�employee�job�performance�across�a�wide�variety�of�set-
tings.35�There’s�also�evidence�that�emotional�intelligence�may�have�a�significantly�stronger�impact�
on� the� job� performance� of� some� employees� more� than� others.� One� recent� study,� for� example,�
found�that�emotional�intelligence�is�a�more�important�determinant�of�job�performance�for�employ-
ees�with�lower�levels�of�cognitive�ability.36�The�explanation�for�this�relationship�is�easy�to�under-
stand� if� you� consider� that,� in� many� circumstances,� high� emotional� intelligence� can� compensate�
somewhat�for�low�cognitive�intelligence.�In�other�words,�exceptional�“people�smarts”�can,�to�some�
extent,�make�up�for�deficiencies�in�“book�smarts.”�See�our�OB at the Bookstore�feature�for�another�
perspective�on�how�and�why�emotional�intelligence�may�be�crucial�for�job�performance.���
Although�the�picture�of�emotional�intelligence�we’ve�painted�so�far�is�very�upbeat,�it’s�impor-
tant�to�mention�that�there�may�be�a�“dark�side”�to�this�ability.�Specifically,�there’s�some�evidence�
that�emotional�intelligence�is�correlated�positively�with�behaviors�at�work�that�are�more�counter-
productive� in� nature.37� That� is,� certain� individuals� with� higher� levels� of� emotional� intelligence�
may�tend�to�engage�in�more�counterproductive�behaviors�such�as�gossiping,�harassment,�and�even�
theft.�This�might�come�as�some�surprise�to�you�given�all�the�positives�of�emotional�intelligence�we�
mentioned�in�the�previous�paragraphs.�However,�consider�that�the�ability�to�understand�and�influ-
ence�others’�emotions�can�be�used�to�achieve�personal�goals�that�are�not�necessarily�compatible�
with�the�goals�and�values�of�the�organization�or�society.38�In�essence,�emotional�intelligence�may�
provide�individuals�with�a�gift�of�being�able�to�influence�how�other�people�feel,�and�unfortunately,�
that�gift�can�be�abused�if�the�individual�is�inclined�toward�questionable�ends.39�
ASSESSING EMOTIONAL INTELLIGENCE As� we� discussed� previously,� cognitive� abilities� are�
typically� assessed� using� measures� with� questions� such� as� those� included� in� SAT� or� IQ� tests.� So�
how� is� emotional� intelligence� assessed?� One� type� of� emotional� intelligence� assessment� is� similar�
Final PDF to printer
316 C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 316� 09/28/17��11:18�AM
OB AT THE BOOKSTORE
HUMILITY IS THE NEW SMART
by Edward D. Hess & Katherine Ludwig (Oakland, CA: Berrett-Koehler, 2017).
Society is on the leading edge of a technology tsunami. Advances in artificial intelligence, the Inter-
net of Things, virtual reality, robotics, nanotechnology, deep learning, mapping the human brain,
and biomedical, genetic, and cyborg engineering will revolutionize how most of us live and work.
With� those� words,� authors� Hess� and� Ludwig� provide� the� back-
drop� for� their� assertion� that� in� order� to� maintain� our� relevance� in�
light� of� machines� that� can� think� and� learn,� humans� will� have� to�
fundamentally� adapt� how� we� think� and� learn.� Machines� can� pro-
cess,� remember,� pattern� match,� explain� variance� and� synthesize�
data�faster�than�anyone�who�ever�lived,�and�as�machines�continue�to�
improve�in�their�capabilities,�there�will�be�fewer�and�fewer�jobs�that�
require�humans.�What�will�be�left�for�us�to�do�will�require�high-level�
critical� thinking,� creativity,� and� effectively� engaging� with� others.�
Unfortunately,� the� authors� claim� that� these� are� precisely� the� abili-
ties�that�run�counter�to�human�nature.�That�is,�we�process�informa-
tion�quickly�using�mental�shortcuts,�we’re�emotional�and�defensive�
about�our�ideas,�and�we’re�self-centered.�So�how�are�we�to�develop�
the�abilities�we�need�to�be�successful�in�the�“smart�machine�age?”
According� to� Hess� and� Ludwig,� we� first� need� to� rethink� what�
smart�means.�Current�definitions�refer�to�how�much�one�knows�and�can�apply�to�solve�problems�
relative� to� others.� Smart� in� the� smart� machine� age,� or� “NewSmart,”� is� more� about� quality� than�
quantity.� It� involves� quieting� one’s� ego,� managing� one’s� emotions,� thinking� and� listening� reflec-
tively,� and� connecting� emotionally� with� others.� The� authors� suggest� that� the� key� to� unlocking�
NewSmart�is�to�develop�humility,�an�orientation�that�is�open-minded�about�possibilities,�accurate�
in�self-perceptions�and�acceptance�of�one’s�strengths�and�weaknesses,�and�an�appreciation�for�the�
value�of�others.�When�we�possess�this�type�of�humility,�we�can�think�more�creativity,�admit�when�
we�might�not�have�the�right�answer,�learn�iteratively,�and�build�relationships�that�allow�for�true�
collaboration�to�occur.�Although�some�of�the�arguments�in�the�book�may�seem�a�little�abstract,�the�
underlying�problem�is�nevertheless�compelling.�Moreover,�there�are�tools�and�assessments�in�the�
book�that�explain�how�the�ideas�can�be�put�into�practice.�
©Roberts Publishing Services
to�a�SAT-style�test,�because�questions�are�scored�as�correct�or�incorrect.�Test�takers�are�asked�to�
describe�the�emotions�of�people�depicted�in�pictures,�predict�emotional�responses�to�different�situa-
tions,�and�identify�appropriate�and�inappropriate�emotional�responses.�After�a�person�takes�the�test,�
it�gets�sent�back�to�the�test�publisher�to�be�scored.�Another�type�of�assessment�asks�people�about�
behaviors�and�preferences�that�are�thought�to�reflect�emotional�intelligence.�One�of�the�first�tests�
of� this� type,� the� Emotional� Quotient� Inventory� (EQ-i),40� includes� 133� such� questions.� Although�
the�EQ-i�has�been�used�by�many�organizations�in�an�attempt�to�improve�managerial�practices�and�
organizational�effectiveness,�it�has�been�criticized�for�measuring�personality�traits�more�than�actual�
abilities.41�More�recently,�a�group�of�researchers�published�a�very�short�and�easy-to-score�measure�
specifically�designed�to�assess�each�of�the�four�facets�of�emotional�intelligence�described�in�this�sec-
tion.42�Although�this�assessment�is�similar�in�format�to�the�EQ-i,�the�items�don’t�appear�to�overlap�
as�much�with�items�that�measure�different�aspects�of�personality.�You�can�take�the�test�yourself�in�
our�OB Assessments�feature�to�see�where�you�stand�in�terms�of�emotional�intelligence.
Final PDF to printer
317C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 317� 09/28/17��11:18�AM
OB ASSESSMENTS
SCORING AND INTERPRETATION:
�•� Self-Awareness:�Sum�up�items�1–4.�_________
�•� Other�Awareness:�Sum�up�items�5–8.�_________
�•� Emotion�Use:�Sum�up�items�9–12.�_________
�•� Emotion�Regulation:�Sum�up�items�13–16.�_________
If�you�scored�19�or�above,�then�you�are�above�average�on�a�particular�dimension.�If�you�scored�
18�or�below,�then�you�are�below�average�on�a�particular�dimension.
Sources:�K.S.�Law,�C.S.�Wong,�and�L.J.�Song,�“The�Construct�and�Criterion�Validity�of�Emotional�Intelligence�and�Its�
Potential�Utility�for�Management�Studies,”�Journal of Applied Psychology�89�(2004),�pp.�483–96;�and�C.S.�Wong�and�K.S.�
Law,�“The�Effects�of�Leader�and�Follower�Emotional�Intelligence�on�Performance�and�Attitude,”�The Leadership Quarterly�
13�(2002),�pp.�243–74.
EMOTIONAL INTELLIGENCE
How�high�is�your�emotional�intelligence?�This�assessment�will�tell�you�where�you�stand�on�the�four�
facets� of� emotional� intelligence� discussed� in� this� chapter—self-awareness,� other� awareness,� emo-
tion�regulation,�and�emotion�use.�Answer�each�question�using�the�response�scale�provided.�Then�
follow� the� instructions� below� to� score� yourself.� (Instructors:� Assessments� on� job� ability� prefer-
ences�and�tolerance�for�emotional�labor�can�be�found�in�the�PowerPoints�in�the�Connect�Library’s�
Instructor�Resources�and�in�the�Connect�assignments�for�this�chapter.)
1
TOTALLY
DISAGREE
2
DISAGREE
3
SOMEWHAT
DISAGREE
4
NEUTRAL
5
SOMEWHAT
AGREE
6
AGREE
7
TOTALLY
AGREE
1. I have a good sense of why I have certain feelings most of the time.
2. I have a good understanding of my own emotions.
3. I really understand what I feel.
4. I always know whether or not I am happy.
5. I am a good observer of others’ emotions.
6. I always know my friends’ emotions from their behavior.
7. I am sensitive to the feelings and emotions of others.
8. I have a good understanding of the emotions of people around me.
9. I always set goals for myself and then try my best to achieve them.
10. I always tell myself I am a competent person.
11. I am a self-motivating person.
12. I would always encourage myself to try my best.
13. I am able to control my temper so that I can handle difficulties rationally.
14. I am quite capable of controlling my own emotions.
15. I can always calm down quickly when I am very angry.
16. I have good control over my own emotions.
Final PDF to printer
318 C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 318� 09/28/17��11:18�AM
P H YS I CA L A B I L I T Y
Physical� abilities� are� likely� very� familiar� to� you� because� many� of� you� took� physical� education�
classes�early�in�your�school�career.�Maybe�you�were�evaluated�on�whether�you�could�climb�a�rope�
to�the�ceiling�of�a�gymnasium,�run�around�a�track�several�times,�or�kick�a�ball�to�a�teammate�who�
was�running�full�stride.�Or�maybe�you’ve�applied�for�a�job�and�had�to�take�a�test�that�assessed�your�
ability�to�manipulate�and�assemble�small�mechanical�parts.�As�a�final�example,�and�the�one�likely�
to�be�most�familiar,�you’ve�probably�been�subject�to�tests�that�measure�the�quality�of�your�vision�
and�hearing.�Although�these�examples�may�not�seem�to�be�related,�each�refers�to�a�different�type�
of�physical�ability.�In�this�section,�we�review�a�few�important�types�of�physical�abilities,�which�are�
summarized�in�Table�10-2.�We�note�that�the�definitions�and�information�in�this�table�(and�in�the�
following�sections)�come�from�O*NET,�which�as�we�mentioned�previously,�outlines�requirements�
of�employees�in�different�types�of�jobs�and�occupations.43
STRENGTH Although�strength�generally�refers�to�the�degree�to�which�the�body�is�capable�of�exert-
ing�force,�there�are�actually�several�different�types�of�strength�that�are�important,�depending�on�the�
job.�Static strength�refers�to�the�ability�to�lift,�push,�or�pull�very�heavy�objects�using�the�hands,�arms,�
legs,�shoulders,�or�back.�Static�strength�is�involved�in�jobs�in�which�people�need�to�lift�objects�like�
boxes,�equipment,�machine�parts,�and�heavy�tools.�With�explosive strength,�people�exert�short�bursts�
of�energy�to�move�the�body�or�an�object.�Employees�who�are�required�to�run,�jump,�or�throw�things�at�
work�depend�on�their�explosive�strength�to�be�effective.�The�final�type�of�strength,�dynamic strength,�
refers�to�the�ability�to�exert�force�for�a�prolonged�period�of�time�without�becoming�overly�fatigued�
and�giving�out.�Dynamic�strength�is�involved�in�jobs�in�which�employees�have�to�climb�ropes�or�lad-
ders�or�pull�themselves�up�onto�platforms.�Although�jobs�requiring�physical�strength�may�vary�as�to�
which�category�is�important,�there�are�also�many�jobs�that�require�all�three�categories.�Firefighters,�
for�example,�must�typically�pass�grueling�tests�of�strength�before�being�hired.�In�Dublin,�California,�
one�part�of�the�firefighter�strength�test�involves�climbing�a�long�flight�of�stairs�under�time�constraints�
without�touching�the�rails�while�wearing�a�50-pound�vest�and�carrying�another�25�pounds�of�equip-
ment.�Another�part�of�the�test�involves�safely�moving�a�165-pound�dummy�out�of�harm’s�way.44
STAMINA Stamina�refers�to�the�ability�of�a�person’s�lungs�and�circulatory�system�to�work�effi-
ciently�while�he�or�she�is�engaging�in�prolonged�physical�activity.�Stamina�may�be�important�in�
jobs� that� require� running,� swimming,� and� climbing.� In� fact,� stamina� is� involved� whenever� the�
nature�of�the�physical�activity�causes�the�heart�rate�to�climb�and�the�depth�and�rate�of�breathing�
to�increase�for�prolonged�periods�of�time.�As�you�can�imagine,�the�firefighter�test�described�in�the�
previous�paragraph�assesses�stamina�as�well�as�strength.
FLEXIBILITY AND COORDINATION Generally� speaking,� flexibility� refers� to� the� ability� to�
bend,�stretch,�twist,�or�reach.�When�a�job�requires�extreme�ranges�of�motion—for�example,�when�
people�need�to�work�in�a�cramped�compartment�or�an�awkward�position—the�type�of�flexibility�
involved�is�called�extent flexibility.�If�you’ve�ever�watched�a�person�working�inside�the�trunk�of�a�
car�installing�speakers,�you’ve�seen�extent�flexibility.�When�a�job�requires�repeated�and�somewhat�
quick�bends,�stretches,�twists,�or�reaches,�the�type�of�flexibility�involved�is�called�dynamic flexibil-
ity.�To�understand�what�dynamic�flexibility�involves,�picture�a�house�painter�on�a�ladder�trying�to�
paint�some�trim�just�barely�within�reach.
In�addition�to�flexibility,�coordination,�or�the�quality�of�physical�movement,�may�be�important�
in� some� jobs.� Gross body coordination� refers� to� the� ability� to� synchronize� the� movements� of� the�
body,�arms,�and�legs�to�do�something�while�the�whole�body�is�in�motion.�In�contrast,�gross body
equilibrium�involves�the�ability�to�maintain�the�balance�of�the�body�in�unstable�contexts�or�when�
the�person�has�to�change�directions.�Jumping�rope�effectively�requires�gross�body�coordination;�
walking�on�a�balance�beam�requires�gross�body�equilibrium.�Both�types�of�coordination�are�impor-
tant�in�contexts�that�involve�quick�movements.�However,�gross�body�equilibrium�is�more�impor-
tant�when�the�work�environment�is�artificially�elevated�and�inherently�unstable.
PSYCHOMOTOR ABILITIES There�are�several�different�examples�of�psychomotor abilities,�which�
generally�refer�to�the�capacity�to�manipulate�and�control�objects.�Fine manipulative abilities�refer�to�
the�ability�to�keep�the�arms�and�hands�steady�while�using�the�hands�to�do�precise�work,�generally�on�
10.4
What are the various types
of physical ability?
Final PDF to printer
319C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 319� 09/28/17��11:18�AM
Sources:�Adapted�from�E.A.�Fleishman,�D.P.�Costanza,�and�J.�Marshall-Mies,�“Abilities,”�in�An Occupational Information
System for the 21st�Century: The Development of O*NET,�ed.�N.G.�Peterson,�M.D.�Mumford,�W.C.�Borman,�P.R.�Jeanneret,�
and� E.A.� Fleishman� (Washington,� DC:� American� Psychological� Association,� 1999),� pp.� 175–95;� and� O*NET� Website,�
The O*NET Content Model: Detailed Outline with Descriptions,�http://www.onet�center.org/content.html/1.A?D=1#Cm_1.A�
(accessed�May�20,�2009).
TABLE 10-2 Physical Abilities
TYPE MORE SPECIFIC FACET JOBS WHERE RELEVANT
Strength Static: Lifting, pushing, pulling heavy
objects
Explosive: Exerting a short burst of
muscular force to move oneself or objects
Dynamic: Exerting muscular force
repeatedly or continuously
Structural iron and steel
workers; tractor trailer and
heavy truck drivers; farm
workers; firefighters
Stamina Exerting oneself over a period of time
without circulatory system giving out
Athletes; dancers; commercial
divers; firefighters
Flexibility and
Coordination
Extent Flexibility: Degree of bending,
stretching, twisting of body, arms, legs
Dynamic Flexibility: Speed of bending,
stretching, twisting of body, arms, legs
Gross Body Coordination: Coordinating
movement of body, arms, and legs in
activities that involve all three together
Gross Body Equilibrium: Ability to
regain balance in contexts where balance
is upset
Athletes; dancers; riggers;
industrial machinery
mechanics; choreographers;
commercial divers; structural
iron and steel workers
Psychomotor Fine Manipulative Abilities: Keeping hand
and arm steady while grasping, manipulat-
ing, and assembling small objects
Control Movement Abilities: Making quick,
precise adjustments to a machine while
operating it
Response Orientation: Quickly choosing
among appropriate alternative movements
Response Time: Quickly responding to
signals with body movements
Fabric menders; potters;
timing device assemblers;
jewelers; construction drillers;
agricultural equipment
operators; photographers;
highway patrol pilots; athletes
Sensory Near and Far Vision: Seeing details of an
object up close or at a distance
Night Vision: Seeing well in low light
Visual Color Discrimination: Detecting dif-
ferences in colors and shades
Depth Perception: Judging relative
distances
Hearing Sensitivity: Hearing differences
in sounds that vary in terms of pitch and
loudness
Auditory Attention: Focusing on a source of
sound in the presence of other sources
Speech Recognition: Identifying and under-
standing the speech of others
Electronic testers and
inspectors; highway patrol
pilots; tractor trailer, truck,
and bus drivers; airline pilots;
photographers; musicians
and composers; industrial
machine mechanics; speech
pathologists
Final PDF to printer
320 C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 320� 09/28/17��11:18�AM
small�or�delicate�objects�such�as�arteries,�nerves,�gems,�and�watches.�Control movement abilities�are�
important�in�tasks�for�which�people�have�to�make�different�precise�adjustments,�using�machinery�to�
complete�the�work�effectively.�Anyone�who�drills�things�for�a�living,�whether�it�be�wood,�concrete,�or�
teeth,�needs�this�type�of�ability.�The�ability�to�choose�the�right�action�quickly�in�response�to�several�
different�signals�is�called�response orientation.�It�shouldn’t�be�too�difficult�to�imagine�the�importance�
of�response�orientation�for�an�airline�pilot�who�responds�to�the�flashing�lights,�buzzers,�and�verbal�
information�triggered�during�an�in-flight�emergency.�The�final�psychomotor�ability�we�describe�is�
called�response time.�This�ability�reflects�how�quickly�an�individual�responds�to�signaling�informa-
tion�after�it�occurs.�Returning�to�the�previous�example,�most�of�us�would�feel�more�secure�if�our�
airline�pilot�had�both�a�fast�response�orientation�and�a�quick�response�time.�After�all,�making�the�
right�decision�may�not�be�useful�in�this�context�if�the�decision�is�made�too�late!
SENSORY ABILITIES Sensory abilities�refers�to�capabilities�associated�with�vision�and�hearing.�
Examples�of�important�visual�abilities�include�the�ability�to�see�things�up�close�and�at�a�distance�
(near and far vision)�or�in�low�light�contexts�(night vision),�as�well�as�the�ability�to�perceive�colors�
and�judge�relative�distances�between�things�accurately�(visual color discrimination�and�depth percep-
tion).�There�are�many�different�jobs�that�emphasize�only�one�or�two�of�these�visual�abilities.�For�
example,� whereas� effectiveness� as� a� watch� repairer� depends� on� good� near� vision,� effectiveness�
as�an�interior�designer�depends�on�visual�color�discrimination.�However,�there�are�other�jobs�in�
which�effectiveness�might�depend�on�almost�all�categories�of�visual�abilities.�A�fighter�pilot�needs�
near�vision�to�read�instruments�and�checklists,�far�vision�and�depth�perception�to�see�enemy�tar-
gets�and�landmarks,�night�vision�to�conduct�operations�in�low�light,�and�visual�color�discrimina-
tion�to�interpret�information�from�warning�lights�and�computer�readouts�correctly.
Abilities�related�to�hearing,�also�referred�to�as�auditory�abilities,�include�the�capability�to�hear�and�
discriminate�sounds�that�vary�in�terms�of�loudness�and�pitch�(hearing sensitivity),�being�able�to�focus�
on�a�single�sound�in�the�presence�of�many�other�sounds�(auditory attention),�and�the�ability�to�identify�
and�understand�the�speech�of�another�person�(speech recognition).�Perhaps�the�most�obvious�jobs�for�
which�auditory�abilities�would�be�important�are�musicians�and�composers�(yes,�we�are�going�to�ignore�
exceptions�like�Beethoven,�who�was�deaf�at�the�time�he�wrote�his�Ninth�Symphony).�However,�with�
these� jobs,� the� emphasis� would� likely� be� on� hearing� sensitivity� and� auditory� attention� rather� than�
speech�recognition�(who�listens�to�lyrics�these�days?).�Another�job�for�which�auditory�abilities�might�
be�crucially�important�is�a�restaurant�server,�especially�if�the�restaurant�is�crowded�and�noisy.�In�this�
context,�a�server�needs�auditory�attention�and�speech�recognition�to�be�able�to�isolate�and�understand�
the�words�of�a�single�patron�against�the�backdrop�of�the�loud�chatter.�As�an�example�of�a�company�
that�exists�because�of�auditory�ability,�consider�the�case�of�Monster�Cable,�the�Brisbane,�California–
based�manufacturer�of�audiovisual�cables�and�accessories.�Noel�Lee,�the�company’s�founder,�started�
out�by�comparing�the�sound�of�Tchaikovsky’s�1812 Overture�and�Michael�Jackson’s�“Liberian�Girl”�
using�different�types�of�speaker�wire.45�He�listened�to�the�music�over�and�over�again�and�carefully�con-
sidered�the�dynamics,�loudness,�bass�response,�and�high�frequencies�of�the�music�to�determine�which�
combination� of� wire� thickness,�
composition,� and� braiding� pat-
tern�sounded�best.
S U M M A RY: W H AT
D O E S I T M E A N F O R
A N E M P LOY E E TO
B E “A B L E ” ?
Thus�far�in�the�chapter,�we’ve�pre-
sented� you� with� a� fairly� detailed�
description� of� the� domain� of�
human� abilities,� which� are� sum-
marized�in�Figure�10-2.�Although�
the� list� of� abilities� included� in�
the� figure� may� seem� somewhat�
Noel Lee founded Monster
Cable after using his
extraordinary auditory abil-
ity to identify which type of
speaker wire sounds best.
©Richard Shotwell/AP Images
Final PDF to printer
321C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 321� 09/28/17��11:18�AM
FIGURE 10-2 What Does It Mean for an Employee to Be “Able”?
Cognitive
Ability
Emotional
Ability
Physical
Ability
• Verbal
• Quantitative
• Reasoning
• Spatial
• Perceptual
• Self-Awareness
• Other Awareness
• Emotion Regulation
• Use of Emotions
• Strength
• Stamina
• Flexibility &
• Psychomotor
• Sensory
OVERALL
ABILITY
Coordination
Source:� Adapted� from� J.J.� Johnson� and� J.B.� Cullen,� “Trust� in� Cross-Cultural� Relationships,”� in� Blackwell Handbook of
Cross-Cultural Management,�ed.�M.J.�Gannon�and�K.L.�Newman�(Malden,�MA:�Blackwell,�2002),�pp.�335–60.
daunting,�we�hope�that�you�can�appreciate�that�this�set�of�abilities�describes�each�and�every�one�of�us.�
Moreover,�as�we�have�alluded�to�throughout�the�chapter,�these�abilities�play�an�important�role�in�deter-
mining�how�effective�we�can�be�at�different�tasks�and�jobs.
H O W I M P O R TA N T I S A B I L I T Y ?
So,�now�that�you�know�what�ability�is�and�where�it�comes�from,�let’s�turn�to�the�next�important�
question:�Does�ability�really�matter?�That�is,�does�ability�have�a�significant�impact�on�job�perfor-
mance� and� organizational� commitment—the� two� primary� outcomes� in� our� integrative� model� of�
OB?�The�answer�to�this�question�depends�on�what�type�of�ability�you�are�referring�to—cognitive,�
emotional,�or�physical.�We�focus�our�discussion�on�general�cognitive�ability�because�it’s�the�most�
relevant�form�of�ability�across�all�jobs�and�is�likely�to�be�important�in�the�kinds�of�positions�that�
students�in�an�OB�course�will�be�pursuing.�As�it�turns�out,�there’s�a�huge�body�of�research�linking�
general�cognitive�ability�to�job�performance,�as�summarized�in�Figure�10-3.46
The�figure�reveals�that�general�cognitive�ability�is�a�strong�predictor�of�job�performance—in�par-
ticular,�the�task�performance�aspect.�Across�all�jobs,�smarter�employees�fulfill�the�requirements�of�
their�job�descriptions�more�effectively�than�do�less�smart�employees.47�In�fact,�of�all�the�variables�
discussed�in�this�book,�none�has�a�stronger�correlation�with�task�performance�than�general�cogni-
tive�ability.�Thousands�of�organizations,�many�of�which�are�quite�well�known,�assess�cognitive�abil-
ity�in�efforts�to�select�the�best�candidates�available�for�specific�jobs.48�The�use�of�cognitive�ability�
10.5
How does cognitive ability
affect job performance
and organizational
commitment?
Final PDF to printer
322 C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 322� 09/28/17��11:18�AM
tests�for�this�purpose�appears�to�be�quite�reasonable,�given�that�scores�on�such�tests�have�a�strong�
positive�correlation�with�measures�of�performance�across�different�types�of�jobs.49
In�fact,�this�relationship�holds�even�for�performance�in�academic�contexts.�We�mentioned�the�
Scholastic�Assessment�Test,�or�the�SAT,�several�times�in�this�chapter�because�it’s�likely�to�be�quite�
familiar�to�you�and�because�it�largely�reflects�general�cognitive�ability.50�Most�colleges�and�univer-
sities�in�the�United�States�take�these�scores�into�account�when�deciding�which�students�to�admit�
because�they�believe�that�higher�scores�increase�the�chances�that�students�will�be�successful�in�col-
lege.�But�does�the�SAT�really�relate�to�how�well�someone�does�in�college?�Many�of�you�are�likely�
to�be�skeptical�because�you�probably�know�someone�who�did�extremely�well�on�the�SAT�but�per-
formed�poorly�as�a�college�student.�Similarly,�you�probably�know�someone�who�didn’t�do�that�well�
on�the�SAT�but�who�performed�well�as�a�college�student.�Indeed,�it�is�true�that�certain�tendencies�
(such�as�working�hard,�setting�high�personal�goals,�and�staying�organized)�and�choices�(such�as�
which�courses�to�take)�play�a�nontrivial�role�in�the�grades�earned�in�college.51�However,�as�it�turns�
out,�the�SAT�is�actually�good�at�predicting�college�performance�above�and�beyond�these�factors.�
Students�with�higher�SAT�scores�tend�to�perform�much�better�in�their�first�year�of�college,�end�up�
with�a�higher�cumulative�grade�point�average,�and�have�a�higher�likelihood�of�graduating.52�The�
same�finding�applies�to�predicting�success�in�graduate�level�school�as�well.�The�Graduate�Manage-
ment�Admission�Test,�or�GMAT,�is�similar�to�the�SAT�in�structure�and�content,�and�students�who�
score�higher�on�this�test�prior�to�admission�to�graduate�school�tend�to�achieve�better�grade�point�
averages�over�the�course�of�their�graduate�program.53
So�what�explains�why�general�cognitive�ability�relates�to�task�performance?�People�who�have�
higher� general� cognitive� ability� tend� to� be� better� at� learning and decision making� (which� we�
FIGURE 10-3 Effects of General Cognitive Ability on Performance and Commitment
Sources:� J.W.� Boudreau,� W.R.� Boswell,� T.A.� Judge,� and� R.D� Bretz,� “Personality� and� Cognitive� Ability� as� Predictors�
of� Job� Searc� among� Employed� Managers,”� Personnel Psychology� 54� (2001),� pp.� 25–50;� S.M.� Colarelli,� R.A.� Dean,� and��
C.�Konstans,�“Comparative�Effects�of�Personal�and�Situational�Influences�on�Job�Outcomes�of�New�Professionals,”�Journal
of Applied Psychology�72�(1987),�pp.�558–66;�D.N.�Dickter,�M.�Roznowski,�and�D.A.�Harrison,�“Temporal�Tempering:�An�
Event�History�Analysis�of�the�Process�of�Voluntary�Turnover,”�Journal of Applied Psychology�81�(1996),�pp.�705–16;�and�
F.L.� Schmidt� and� J.� Hunter,� “General� Mental� Ability� in� the� World� of� Work:� Occupational� Attainment� and� Job� Perfor-
mance,”�Journal of Personality and Social Psychology�86�(2004),�pp.�162–73.
Job
Performance
Cognitive
Ability
Organizational
Commitment
Cognitive
Ability
General cognitive ability has a strong positive e�ect on Task Performance. However,
the correlation is higher for jobs that are more complex than average and lower for jobs
that are less complex than average. The e�ects of general cognitive ability are near
zero for Citizenship Behavior and Counterproductive Behavior.
General cognitive ability has a weak e�ect on A�ective Commitment, Continuance
Commitment, and Normative Commitment. The desire to remain a member of the
organization is not influenced much by cognitive ability.
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
Final PDF to printer
323C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 323� 09/28/17��11:18�AM
covered�in�detail�in�Chapter�8).�They’re�able�to�gain�more�knowledge�from�their�experiences�at�a�
faster�rate,�and�as�a�result,�they�develop�a�bigger�pool�of�knowledge�regarding�how�to�do�their�jobs�
effectively.54�There�are,�however,�three�important�caveats�that�we�should�mention.�First,�cognitive�
ability� tends� to� be� much� more� strongly� correlated� with� task� performance� than� with� citizenship�
behavior,�and�the�relationship�between�cognitive�ability�and�counterproductive�behavior�is�essen-
tially�zero.55�An�increased�amount�of�job�knowledge�helps�an�employee�complete�job�tasks,�but�
it�doesn’t�necessarily�affect�the�choice�to�help�a�coworker�or�refrain�from�breaking�an�important�
rule.�Second,�the�positive�correlation�between�cognitive�ability�and�performance�is�even�stronger�
in�jobs�that�are�complex�or�situations�that�demand�adaptability.56�Third,�people�may�do�poorly�on�
a�test�of�general�cognitive�ability�for�reasons�other�than�a�lack�of�cognitive�ability.�As�an�example,�
people� who� come� from� economically� disadvantaged� backgrounds� may� do� poorly� on� such� tests,�
not�because�they�lack�the�underlying�cognitive�ability�but�because�they�may�not�have�had�the�learn-
ing�opportunities�needed�to�provide�the�appropriate�responses.
In� contrast� to� relationships� with� job� performance,� research� has� not� supported� a� significant�
linkage�between�cognitive�ability�and�organizational�commitment.57�On�the�one�hand,�we�might�
expect�a�positive�relationship�with�commitment�because�people�with�higher�cognitive�ability�tend�
to�perform�more�effectively,�and�therefore,�they�might�feel�they�fit�well�with�their�job.�On�the�other�
hand,�we�might�expect�to�see�a�negative�relationship�with�commitment�because�people�with�higher�
cognitive�ability�possess�more�job�knowledge,�which�increases�their�value�on�the�job�market,�and�
in�turn�the�likelihood�that�they�would�leave�for�another�job.58�In�the�end,�knowing�how�smart�an�
employee� is� tells� us� very� little� about� the� likelihood� that� he� or� she� will� remain� a� member� of� the�
organization.
A P P L I C AT I O N : S E L E C T I N G H I G H C O G N I T I V E
A B I L I T Y E M P LOY E E S
Given�the�strong�relationship�between�general�cognitive�ability�and�job�performance,�it�isn’t�sur-
prising�that�many�organizations�apply�the�content�of�this�chapter�to�hire�new�employees.�As�an�
example,�consider�how�Google�goes�about�hiring�employees�whom�it�believes�are�the�best�and�the�
brightest.�To�attract�intelligent�people�to�apply�for�a�job,�the�company�placed�billboards�in�Silicon�
Valley�and�Harvard�Square�with�the�brainteaser,�“first�10-digit�prime�found�in�consecutive�digits�of�
e.com.”�(The�“e”�in�the�question�refers�to�the�transcendental�number�used�as�the�basis�for�natural�
logarithms,�and�the�first�10-digit�prime�number�in�this�string�turns�out�to�be�7427466391.)�People�
who�solved�the�brainteaser�went�to�the�website�where�there�was�a�more�difficult�brainteaser.�Solv-
ing� that� one� resulted� in� Google� asking� for� the� person’s� résumé.59� The� company� also� developed�
something�called�the�Google Labs Aptitude Test�(GLAT�for�short)�and�published�it�in�magazines�
that�smart�techies�might�read.�The�GLAT�is�similar�to�the�SAT�and�includes�questions�such�as,�
“How�many�different�ways�can�you�color�an�icosahedron�with�one�of�three�colors�on�each�face?”�
Google�used�the�GLAT�to�attract�people�who�are�smart�and�who�are�interested�in�the�types�of�
problems�in�the�test.�The�people�who�are�ultimately�brought�in�for�a�job�interview�typically�face�
10-person� interview� panels� and� are� confronted� with� very� difficult� questions.� People� who� apply��
for�a�technical�job�might�be�asked�to�solve�math�algorithms�and�answer�technical�questions�about�
software� and� computer� networking.60� It’s� also� likely� that� they’ll� be� asked� brainteaser� questions�
that�rely�upon�both�general�intelligence�and�the�originality�facet�of�reasoning�ability.�For�example,�
“How�many�golf�balls�fit�in�a�school�bus?”�and�“You�are�shrunk�to�the�height�of�a�nickel�and�your�
mass�is�proportionally�reduced�so�as�to�maintain�your�original�density.�You�are�then�thrown�into�
an�empty�glass�blender.�The�blades�will�start�moving�in�60�seconds.�What�do�you�do?”61�Although�
you� might� not� look� forward� to� the� prospect� of� having� to� answer� these� types� of� questions� in� an�
already�stressful�job�interview,�other�companies�such�as�Microsoft�use�a�similar�approach�to�hire�
highly�intelligent�employees,�so�it’s�something�for�which�you�might�want�to�be�prepared.62
Of�course,�companies�outside�the�high-technology�sector�are�also�interested�in�hiring�employees�
who�have�high�cognitive�ability,�and�applicants�for�jobs�in�many�of�these�companies�are�given�a�cog-
nitive�ability�test�as�part�of�the�selection�process.�One�of�the�most�widely�used�tests�is�the�Wonderlic
Final PDF to printer
324 C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 324� 09/28/17��11:18�AM
FIGURE 10-4 Sample Wonderlic Questions
1. Which of the following is the earliest date?
A) Jan. 16, 1898 B) Feb. 21, 1889 C) Feb. 2, 1898 D) Jan. 7, 1898 E) Jan. 30, 1889
2. LOW is to HIGH as EASY is to ?.
A) SUCCESSFUL B) PURE C) TALL D) INTERESTING E) DIFFICULT
3. A featured product from an Internet retailer generated 27, 99, 80, 115 and 213 orders over a 5-hour period.
Which graph below best represents this trend?
4. What is the next number in the series? 29 41 53 65 77 ?
A) 75 B) 88 C) 89 D) 98 E) 99
5. One word below appears in color. What is the OPPOSITE of that word? She gave a complex answer to the
question and we all agreed with her.
A) long B) better C) simple D) wrong E) kind
6. Jose’s monthly parking fee for April was $150; for May it was $10 more than April; and for June $40 more than
May. His average monthly parking fee was? for these 3 months.
A) $66 B) $160 C) $166 D) $170 E) $200
7. If the first two statements are true, is the final statement true?
Sandra is responsible for ordering all office supplies.
Notebooks are office supplies.
Sandra is responsible for ordering notebooks.
A) yes B) no C) uncertain
8. Which THREE choices are needed to create the figure on the left? Only pieces of the same color may overlap.
9. Which THREE of the following words have similar meanings?
A) observable B) manifest C) hypothetical D) indefinite E) theoretical
10. Last year, 12 out of 600 employees at a service organization were rewarded for their excellence in customer
service, which was ? of the employees.
A) 1% B) 2% C) 3% D) 4% E) 6%
Answers:
1. E, 2. E, 3. D, 4. C, 5. C, 6. D, 7. A, 8. BCD, 9. CDE, 10. B
A B C D E
A B C D E
Source:�Wonderlic�WPT—Sample�Questions.�Reprinted�with�permission�of�Wonderlic,�Inc.�Copyright�2007�Wonderlic,�Inc�
with�permission.�
Final PDF to printer
325C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 325� 09/28/17��11:18�AM
Cognitive Ability Test,�a�12-minute�test�of�general�cognitive�ability�that�consists�of�50�questions.�It’s�
been�in�use�for�several�decades�now�and�has�been�given�to�more�than�120�million�people�by�thou-
sands�of�organizations.63�From�the�example�items�that�appear�in�Figure�10-4,�you�should�be�able�to�
see�how�the�items�correspond�with�many�of�the�cognitive�abilities�that�we’ve�described�previously.�
People� who� take� the� test� receive� one� point� for� each� correct� response,� and� those� points� are�
summed�to�give�a�total�score�that�can�be�used�as�a�basis�for�selecting�people�for�different�jobs.�The�
Wonderlic�User’s�Manual�offers�recommendations�for�minimum�passing�scores�for�different�job�
families,�some�of�which�are�included�in�Table�10-3.�For�example,�a�score�of�17�is�the�minimum�sug-
gested�score�for�an�unskilled�laborer,�a�score�of�21—which�is�the�average�for�high�school�graduates�
and�corresponds�to�an�IQ�of�approximately�100—is�the�minimum�suggested�score�for�a�firefighter.�
A�score�of�28�is�the�minimum�suggested�score�for�upper-level�managerial�and�executive�work�and�
around�the�average�for�all�college�graduates.
Chances�are�you’ll�hear�about�the�Wonderlic�Cognitive�Ability�Test�every�March�and�April.�This�
is�because�the�National�Football�League�(NFL)�administers�the�test�to�players�who�enter�the�draft,�
and� teams� consider� the� scores� when� selecting� players.� One� question� that� people� always� debate�
during�this�time�is�whether�scores�on�a�test�of�cognitive�ability�are�relevant�to�a�football�player’s�
performance�on�the�field.�Although�supporters�of�the�Wonderlic’s�use�in�the�NFL�argue�that�cog-
nitive�ability�is�necessary�to�remember�plays�and�learn�complex�offensive�and�defensive�systems,�
many�people�wonder�how�the�ability�to�answer�questions�like�those�listed�in�Figure�10-4�relates�to�
a�player’s�ability�to�complete�a�pass,�run�for�a�touchdown,�tackle�an�opponent,�or�kick�a�field�goal.�
Moreover,�detractors�of�the�Wonderlic�wonder�why�a�poor�score�should�overshadow�a�record�of�
superior� accomplishments� on� the� playing� field.� So� who’s� right?� Well,� the� results� of� at� least� one�
study�indicate�that�a�player’s�Wonderlic�score�does�not�predict�subsequent�performance�in�the�NFL�
and�that�this�effect�is�not�influenced�much�by�the�position�of�the�player�being�considered.64
10.6
What steps can organiza-
tions take to hire people
with high levels of
cognitive ability?
TABLE 10-3 Suggested Minimum Wonderlic Scores for Various Jobs
JOB MINIMUM SCORES
Mechanical Engineer 30
Attorney 29
Executive 28
Teacher 27
Nurse 26
Office Manager 25
Advertising Sales 24
Manager/Supervisor 23
Police Officer 22
Firefighter 21
Cashier 20
Hospital Orderly 19
Machine Operator 18
Unskilled Laborer 17
Maid-Matron 16
Source:�Wonderlic Cognitive Ability Test and Scholastic Level Exam: User’s Manual�(Vernon�Hills,�IL:�Wonderlic�Cognitive�
Ability�Test,�Inc.,�1992),�pp.�28–29.�Reprinted�with�permission.
Final PDF to printer
326 C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 326� 09/28/17��11:18�AM
Before� closing,� we� should� mention� here� that� the� use� of� cognitive� ability� tests� for� hiring� pur-
poses�may�unintentionally�discriminate�against�groups�of�individuals�who,�for�a�variety�of�reasons�
that�we�discussed�earlier�in�this�chapter,�tend�to�score�lower.65�A�great�deal�of�research�has�exam-
ined�this�issue,�and�has�concluded�that�although�these�tests�are�not�technically�biased�because�they�
do�not�underpredict�the�job�performance�of�disadvantaged�groups,�they�should�be�used�cautiously,�
especially�in�situations�in�which�a�diverse�workforce�is�desired.66�One�way�of�accomplishing�this�is�
to�use�a�combination�of�hiring�tests.�In�addition�to,�or�instead�of,�a�test�of�general�cognitive�ability,�
a�company�could�use�a�battery�of�tests�that�measure�narrower�cognitive�abilities�and�noncognitive�
traits�such�as�emotional�intelligence�and�personality.67�It�may�also�be�possible�that�organizations�
could� deemphasize� cognitive� ability� when� hiring,� and� instead,� train� employees� in� the� cognitive�
skills�needed�for�the�job.�Although�this�type�of�training�isn’t�something�that�boosts�IQ�scores,�it�
has�been�shown�to�enhance�important�mental�skills,�as�well�as�increasing��confidence�and�perfor-
mance�in�a�variety�of�tasks.68
10.1� Ability�refers�to�the�relatively�stable�capabilities�of�people�to�perform�a�particular�range�of�
different�but�related�activities.�Differences�in�ability�are�a�function�of�both�genes�and�the�
environment.
10.2� Cognitive�abilities�include�verbal�ability,�quantitative�ability,�reasoning�ability,�spatial�
ability,�and�perceptual�ability.�General�cognitive�ability,�or�g,�underlies�all�of�these�more�
specific�cognitive�abilities.
10.3� Emotional�intelligence�includes�four�specific�kinds�of�emotional�skills:�self-awareness,�
other�awareness,�emotion�regulation,�and�use�of�emotions.
10.4� Physical�abilities�include�strength,�stamina,�flexibility�and�coordination,�psychomotor�abili-
ties,�and�sensory�abilities.
10.5� General�cognitive�ability�has�a�strong�positive�relationship�with�job�performance,�due�
primarily�to�its�effects�on�task�performance.�In�contrast,�general�cognitive�ability�is�only�
weakly�related�to�organizational�commitment.
10.6� Many�organizations�use�cognitive�ability�tests�to�hire�applicants�with�high�levels�of�general�
cognitive�ability.�One�of�the�most�commonly�used�tests�is�the�Wonderlic�Cognitive�Ability�Test.
TA K E AWAY S
K E Y T E R M S
�•� Ability� p. 306
�•� Cognitive�ability p. 307
�•� Verbal�ability� p. 307
�•� Quantitative�ability� p. 309
�•� Reasoning�ability� p. 310
�•� Spatial�ability� p. 310
�•� Perceptual�ability� p. 311
�•� General�cognitive�ability� p. 312
�•� Emotional�intelligence� p. 313
�•� Self-awareness� p. 313
�•� Other�awareness� p. 314
�•� Emotion�regulation� p. 314
�•� Use�of�emotions� p. 314
�•� Strength� p. 318
�•� Stamina� p. 318
�•� Flexibility� p. 318
�•� Coordination� p. 318
�•� Psychomotor�ability� p. 318
�•� Sensory�abilities� p. 320
�•� Wonderlic�Cognitive��
Ability�Test� p. 325
Final PDF to printer
327C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 327� 09/28/17��11:18�AM
10.1� What�roles�do�learning,�education,�and�other�experiences�play�in�determining�a�person’s�
abilities?�For�which�type�of�ability—cognitive,�emotional,�or�physical—do�these�factors�play�
the�largest�role?
10.2� Think�of�a�job�that�requires�very�high�levels�of�certain�cognitive�abilities.�Can�you�think�of�
a�way�to�redesign�that�job�so�that�people�who�lack�those�abilities�could�still�perform�the�
job�effectively?�Now�respond�to�the�same�question�with�regard�to�emotional�and�physical�
abilities.
10.3� Consider�your�responses�to�the�previous�questions.�Are�cognitive,�emotional,�and�physical�
abilities�different�in�the�degree�to�which�jobs�can�be�redesigned�to�accommodate�people�
who�lack�relevant�abilities?�What�are�the�implications�of�this�difference,�if�there�is�one?
10.4� Think�of�experiences�you’ve�had�with�people�who�demonstrated�unusually�high�or�low�
levels�of�emotional�intelligence.�Then�consider�how�you�would�rate�them�in�terms�of�their�
cognitive�abilities.�Do�you�think�that�emotional�intelligence�“bleeds�over”�to�affect�people’s�
perceptions�of�cognitive�ability?
10.5� What�combination�of�abilities�is�appropriate�for�the�job�of�your�dreams?�Do�you��
possess�those�abilities?�If�you�fall�short�on�any�of�these�abilities,�what�could�you�do��
to�improve?
D I S C U S S I O N Q U E S T I O N S
The�FBI’s�website�provides�a�vivid�description�of�the�job�of�a�special�agent.�One�day�a�special�
agent�may�be�focused�on�recruiting�a�human�source�of�information�from�a�foreign�country�to�
avert�a�terrorist�attack.�Another�day�may�involve�several�different�activities;�testifying�in�court�in�
the�morning,�planning�a�sting�operation�over�lunch,�chasing�down�a�suspect�on�a�Most�Wanted�
list�in�the�afternoon,�and�speaking�at�a�community�event�in�the�evening.�To�be�effective�at�these�
tasks,�special�agents�not�only�need�to�be�physically�fit,�but�they�also�need�to�be�able�to�work�
independently,�be�adaptable�to�changing�and�sometimes�very�dangerous�situations,�make�logical�
decisions�based�on�all�available�facts,�and�communicate�effectively�and�articulately,�both�orally�
and�in�writing.
To�make�sure�new�hires�possess�these�abilities,�the�FBI�requires�that�special�agent�applicants�
go�through�a�series�of�examinations,�which�include�a�three-hour�session�consisting�of�cognitive,�
behavioral,�and�logical�reasoning�tests,�a�90-minute�written�test�that�measures�problem�solving�
abilities,�a�one-hour�panel�interview�intended�to�supplement�the�information�gathered�in�the�
other�testing,�physical�fitness�tests,�and�a�medical�exam�which,�among�other�things,�tests�vision�
and�hearing.�One�of�the�assumptions�behind�this�testing�is�that�new�hires�will�possess�the��
abilities�necessary�to�have�an�effective�and�long�career�as�an�FBI�special�agent.�But�is�this�
assumption�valid?
On�the�one�hand,�many�of�the�abilities�that�are�tested�during�the�hiring�process�remain�rela-
tively�stable�over�time.�So,�for�example,�an�agent�who�scored�high�on�the�logical�reasoning�ability�
test�when�hired�will�have�high�logical�reasoning�ability�years�later.�On�the�other�hand,�some�abili-
ties�change�over�time,�and�not�for�the�better!�Most�notably,�physical�abilities�tend�to�erode�due�to�
the�process�of�aging�and�coping�with�the�demands�of�work�and�life.�In�recognition�of�this�specific�
issue,�the�FBI�recently�instituted�annual�physical�fitness�testing.�The�test�includes�the�number�
of�sit-ups�in�one�minute,�a�timed�300-meter�sprint,�the�maximum�number�of�pushups�(untimed),�
and�a�timed�1.5�mile�run.�The�scoring�system�is�based�on�an�agent’s�age�and�sex,�and�those�who�
C A S E : F B I
Final PDF to printer
328 C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 328� 09/28/17��11:18�AM
score�below�standard�(or�who�do�not�take�the�test�without�a�medical�excuse)�are�given�a�rating�
of�no�higher�than�“Minimally�Successful”�on�the�“Maintaining�High�Professional�Standards”�
dimension�of�their�annual�performance�review.
10.1 Which�specific�cognitive�and�emotional�abilities�are�likely�to�be�most�important�for�FBI�
special�agents?�Explain.
10.2 Identify�the�specific�physical�abilities�that�are�assessed�in�the�FBI’s�annual�physical�fitness�
test.�Describe�the�responsibilities�of�special�agents�for�which�these�abilities�are�likely�to�be�
most�important.
10.3 How�might�the�frequency�of�various�special�agent�responsibilities�make�it�important�to��
test�for�physical�abilities�(but�not�cognitive�or�emotional�abilities)�on�an�annual�basis?�
Explain.
Sources: FBI,�“News�and�Features,”�https://www.fbi.gov�(accessed�March�20,�2017);�FBI,�“Jobs:�Career�Paths,”�https://
www.fbijobs.gov/career-paths� (accessed� March� 20,� 2017);� M.S.� Schmidt,� “Battling� Crime� and� Calories� at� F.B.I.� (Fit�
Bureau� of� Investigation),”� The New York Times,� April� 4,� 2015.� https://www.nytimes.com/2015/04/06/us/battling-crime�
-and-calories-at-fbi-fit-bureau-of-investigation.html?emc=edit_th_20150406&nl=todaysheadlines&nlid=71709239&_r=1.
E X E R C I S E : E M OT I O N A L I N T E L L I G E N C E
The�purpose�of�this�exercise�is�to�help�you�become�more�aware�of�your�emotions�and�the�emo-
tions�of�others,�as�well�as�to�see�how�emotions�can�be�regulated�and�used�in�your�daily�life.�This�
exercise�uses�groups,�so�your�instructor�will�either�assign�you�to�a�group�or�ask�you�to�create�your�
own�group.�The�exercise�has�the�following�steps:
10.1 Think�about�situations�in�which�you’ve�experienced�each�of�the�following�four�emotions:
� •� Joy
� •� Anxiety
� •� Sadness
� •� Anger
10.2 In� writing� or� in� discussion� with� your� group,� answer� the� following� questions� about� each�
situation:
� a.� What,�exactly,�triggered�your�emotion�in�this�situation?
� b.� What�impact�did�your�emotions�have�on�the�outcome�of�the�situation?�Consider�how�
your�emotions�affected�you,�others,�and�the�general�outcome�of�the�situation.�(Was�it�
positive�or�negative?)
� c.� What�strategies�did�you�use�to�deal�with�the�emotion?
� d.� What�other�strategies�could�you�have�used�to�deal�with�the�emotion?
For�example,�one�student�noted:�“I�always�get�anxious�when�I�take�tests.�Last�week,�I�was�
supposed�to�have�a�midterm�in�Accounting,�and�sure�enough,�the�upcoming�test�triggered�
my�anxiety.�Because�I�was�anxious,�I�put�off�studying,�and�I�tried�to�get�some�friends�to�
go�out�to�a�club�with�me.�We�all�had�a�good�time�that�night,�but�the�next�day�I�got�a�D�on�
my�Accounting�test,�and�two�of�my�friends�failed�their�Management�midterms.�I�was�using�
procrastination�and�avoidance�as�strategies�for�dealing�with�my�anxiety.�Another�strategy�I�
could�have�used�was�to�face�the�anxiety�head-on�by�talking�to�my�professor�to�get�a�better�
understanding�of�the�material�that�was�going�to�be�on�the�test,�or�by�getting�a�group�of�my�
friends�together�to�form�a�study�group�for�Accounting.”
Final PDF to printer
329C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 329� 09/28/17��11:18�AM
10.3 Compare� your� responses� with� the� responses� of� your� fellow� group� members.� As� a� group,�
answer�the�following�questions:
� a.� What�emotional�triggers�do�you�share?�In�what�ways�are�your�emotional�triggers�
different?
� b.� Are�there�some�strategies�for�dealing�with�emotions�that�seem�especially�helpful?�
Unhelpful?
� c.� According�to�the�stories�told�by�the�group,�are�there�times�when�emotions�actually�help�
get�a�task�done�or�a�goal�accomplished?�How�might�you�harness�your�emotions�to�help�
you�achieve�specific�outcomes�in�the�future?
Source:�Adapted�from�M.A.�Brackett�and�N.A.�Katulak.�“Emotional�Intelligence�in�the�Classroom:�Skill-Based�Training�
for�Teachers�and�Students.”�Improving Emotional Intelligence: A Practitioner’s Guide,�ed.�J.�Ciarrochi�and�J.D.�Mayer.�New�
York:�Psychology�Press/Taylor�&�Francis,�2006,�pp.�1–27.
10.1� Fleishman,�E.A.;�D.P.�
Costanza;�and�J.��
Marshall-Mies.��
“Abilities.”�In��
An Occupational
Information System
for the 21st Century:
The Development
of O*NET,�ed.�N.G.�
Peterson,�M.D.�
Mumford,�W.C.�Bor-
man,�P.R.�Jeanneret,�
and�E.A.�Fleishman.�
Washington,�DC:�
American�Psychologi-
cal�Association,�1999,�
pp.�175–95.
10.2� Neisser,�U.;�G.�Boo-
doo;�T.J.�Bouchard;�
A.W.�Boykin;�N.�
Brody;�S.J.�Ceci;�D.F.�
Halpern;�J.C.�Loehlin;�
R.�Perloff;�R.J.�Stern-
berg;�and�S.�Urbina.�
“Intelligence:�Knowns�
and�Unknowns.”�
American Psychologist�
51�(1996),�pp.�77–101.
10.3� McCartney,�K.;�M.J.�
Harris;�and�F.�Ber-
nieri.�“Growing�Up�
and�Growing�Apart:�
A�Developmental�
Meta-Analysis�of�Twin�
Studies.”�Psychological
Bulletin�107�(1990),��
pp.�226–37.
10.4� Cottrell,�J.M.;�D.A.�
Newman;�and�G.I.�
Roisman.�“Explain-
ing�the�Black-White�
Gap�in�Cognitive�
Test�Scores:�Toward�
a�Theory�of�Adverse�
Impact.”��Journal of
Applied Psychology�100�
(2015),�pp.�1713–36.�
10.5� Ceci,�S.J.�“How�Much�
Does�Schooling�
Influence�General�
Intelligence�and��
Its�Cognitive�
Components?�A�
Reassessment�of�the�
Evidence.”�Develop-
mental Psychology�27�
(1991),�pp.�703–22.
10.6� Kohn,�M.L.,�and�C.�
Schooler.�“Occupa-
tional�Experience�and�
Psychological�Func-
tioning:�An�Assessment�
of�Reciprocal�Effects.”�
American Sociological
Review�38�(1973),��
pp.�97–118;�Kohn,�
M.L.,�and�C.�Schooler.�
Work and Personality:
An Inquiry into the
Impact of Social
Stratification.�Norwood,�
NJ:�Ablex,�1983;��
and�Neisser��
et�al.,�“Intelligence.”
10.7� Winerman,�L.�
“Smarter�Than�Ever?”�
Monitor on Psychol-
ogy,�March�2013,�pp.�
30–33.
10.8� O*NET�Online,�
http://online.onet�
center.org/find/
descriptor/browse/
Abilities/#cur�
(accessed�June�5,�
2006).
10.9� Keiser,�H.N.;�P.R.�
Sackett;�N.R.�Kuncel;�
and�T.�Brothen.�“Why�
Women�Perform�
Better�in�College�
Than�Admission�
Scores�Would�Predict:�
Exploring�the�Roles�
of�Conscientiousness�
and�Course-Taking�
E N D N OT E S
Final PDF to printer
330 C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 330� 09/28/17��11:18�AM
Patterns.”��Journal of
Applied Psychology�101�
(2016),�pp.�569–81.�
10.10� Fleishman�et�al.,�
“Abilities”;�and�
O*NET�Website.�The
O*NET Content Model:
Detailed Outline with
Descriptions�(n.d.),�
http://www.onetcenter�
.org/content.html/�
1.A?d=1#cm_1.A.
10.11� Disability Fact Sheet
Handbook,�University�
of�California,�Irvine.�
http://www.disability�
.uci.edu/disability_
handbook/famous_
people.htm�(accessed�
June�9,�2006).
10.12� Vogelstein,�F.�“Google�
@�$165:�Are�These�
Guys�for�Real?”�
Fortune,�December�13,�
2004,�p.�98,�ProQuest�
database�(accessed�
May�14,�2007).
10.13� Carroll,�J.B.�Human
Cognitive Abilities:
A Survey of Factor-
Analytic Studies.��
New�York:�Cambridge�
University�Press,�
1993;�Cattell,�R.B.�
“The�Measurement�of�
Adult�Intelligence.”�
Psychological Bulletin�
40�(1943),�pp.�153–93;�
Galton,�F.�Inquire
into Human Faculty
and Its Development.�
London:�Macmillan,�
1883;�Spearman,�
C.�“General�Intel-
ligence,�Objectively�
Determined�and�
Measured.”�American
Journal of
Psychology�15�(1904),��
pp.�201–93;�Thur-
stone,�L.L.�“Primary�
Mental�Abilities.”�Psy-
chometric Monographs�
(Whole�No.�1,�1938);�
and�Vernon,�P.E.�The
Structure of Human
Abilities.�London:�
Methuen,�1950.
10.14� Spearman,�“General�
Intelligence”;�and�
Spearman,�C.�The
Abilities of Man: Their
Nature and Measure-
ment.�New�York:�
Macmillan,�1927.
10.15� Neisser�et�al.,�
“Intelligence.”
10.16� Rindermann,�H.,�and�
J.�Thompson.�“Cogni-
tive�Capitalism:�The�
Effect�of�Cognitive�
Ability�on�Wealth,�
as�Mediated�through�
Scientific�Achieve-
ment�and�Economic�
Freedom.”�Psychologi-
cal Science�22�(2011),�
pp.�754–63.
10.17� Judge,�T.A.;�R.�Ilies;�
and�N.�Dimotakis.�
“Are�Health�and�Hap-
piness�the�Product�
of�Wisdom?�The�
Relationship�of�Gen-
eral�Mental�Ability�
to�Educational�and�
Occupational�Attain-
ment,�Health,�and�
Well-Being.”�Journal of
Applied Psychology�95�
(2010),�pp.�454–68.
10.18� Deary,�I.J.;�A.�Weiss;�
and�G.D.�Batty.�
“Intelligence,�Person-
ality,�and�Health�Out-
comes.”�Psychological
Science in the Public
Interest�11�(2010),�pp.�
53–79.
10.19� Batty,�G.D.;�I.J.�
Deary;�and�L.S.�Gott-
fedson.�“Premorbid�
(Early�Life)�IQ�and�
Later�Mortality�Risk:�
Systematic�Review.”�
Annals of Epidemiology�
17�(2007),�pp.�278–88.
10.20� Farnham,�A.�“Are�
You�Smart�Enough�
to�Keep�Your�Job?�In�
an�Age�of�Teamwork�
and�Fluid�Careers,�IQ�
Alone�Doesn’t�Cut�It�
Anymore.”�CNNMoney
.com,�January�15,��
1996,�http://money�
.cnn.com/�magazines/
fortune/fortune_
archive/1996/01/�
15/207155/index.htm.
10.21� Bar-On,�R.�Develop-
ment of the Bar-On
EQ-i: A Measure
of Emotional Intel-
ligence and Social
Intelligence.�Toronto:�
Multi-Health�Systems,�
1997;�Gardner,�H.�
The Shattered Mind.�
New�York:�Knopf,�
1975;�Goleman,�D.�
Emotional Intelligence:
Why It Can Matter
More Than IQ.�New�
York:�Bantam�Books,�
1995;�and�Thorndike,�
R.K.�“Intelligence�and�
Its�Uses.”�Harper’s
Magazine�140�(1920),�
pp.�227–335.
10.22� Matthews,�G.;�A.K.�
Emo;�R.D.�Roberts;�
and�M.�Zeidner.�
“What�Is�This�Thing�
Called�Emotional�
Intelligence?”�In�A
Critique of Emotional
Intelligence: What Are
the Problems and How
Can They Be Fixed?,�
ed.�K.R.�Murphy.�
Mahwah,�NJ:�Erl-
baum,�2006,�pp.�3–36;�
and�Mayer,�J.D.;�P.�
Salovey;�and�D.R.�
Caruso.�“Emotional�
Intelligence:�New�
Ability�or�Eclectic�
Final PDF to printer
331C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 331� 09/28/17��11:18�AM
Traits?”�American Psy-
chologist�63�(2008),�
pp.�503–17.
10.23� Salovey,�P.,�and�J.D.�
Mayer.�“Emotional�
Intelligence.”�Imagi-
nation, Cognition, and
Personality�9�(1990),�
pp.�185–211;�and�
Mayer,�J.D.;�R.D.�
Roberts;�and�S.G.�
Barside.�“Human�
Abilities:�Emotional�
Intelligence.”�Annual
Review of Psychology�
59�(2008),��
pp.�507–36.
10.24� Davies,�M.;�L.�
Stankov;�and�R.D.�
Roberts.�“Emotional�
Intelligence:�In�
Search�of�an�Elusive�
Construct.”�Journal of
Personality and Social
Psychology�75�(1998),�
pp.�989–1015.
10.25� Law,�K.S.;�C.S.�Wong;�
and�L.J.�Song.�“The�
Construct�and�Crite-
rion�Validity�of�Emo-
tional�Intelligence�and�
Its�Potential�Utility�for�
Management�Studies.”�
Journal of Applied
Psychology�89�(2004),�
pp.�483–96.
10.26� Ibid.
10.27� Farnham,�“Are�You�
Smart�Enough�to�
Keep�Your�Job?”
10.28� Ibid.
10.29� Davies�et�al.,�“Emo-
tional�Intelligence”;�
and�Law�et�al.,�“The�
Construct�and�Crite-
rion�Validity�of�Emo-
tional�Intelligence.”
10.30� Ibid.
10.31� Parke,�M.R.,�M.G.�
Seo;�and�E.N.�Sherf.�
“Regulating�and�
Facilitating:�The�Role�
of�Emotional�Intel-
ligence�in�Maintaining�
and�Using�Positive�
Affect�for�Creativity.”�
Journal of Applied
Psychology�100�(2015),�
pp.�917–34.
10.32� Cherniss,�C.�“The�
Business�Case�for�
Emotional�Intelli-
gence.”�Consortium for
Research on Emotional
Intelligence in Organi-
zations,�2004,�http://
www.eiconsortium.
org/research/business_�
case_for_ei.htm;�
Cote,�S.,�and�C.T.H.�
Miners.�“Emotional�
Intelligence,�Cogni-
tive�Intelligence,�and�
Job�Performance.”�
Administrative Science
Quarterly�51�(2006),�
pp.�1–28;�Fisher,�A.�
“Success�Secret:�A�
High�Emotional�IQ.”�
Fortune�138,�October�
26,�1998,�p.�293,�
ProQuest�database�
(accessed�May�14,�
2007);�Kendell,�J.�
“Can’t�We�All�Just�
Get�Along?�‘Emo-
tional�Intelligence,’�or�
EI,�May�Sound�Like�
a�Squishy�Manage-
ment�Concept—But�
It�Gets�Results.”�
BusinessWeek,�Octo-
ber�9,�2000,�p.�F18,�
ProQuest�database�
(accessed�May�14,�
2007);�Schwartz,�T.�
“How�Do�You�Feel?”�
Fast Company,�June�
2000,�p.�296,�http://
pf.fastcompany.com/
magazine/35/emotion�
.html;�Walter,�F.;�M.S.�
Cole;�R.H.�Hum-
phrey.�“Emotional�
Intelligence:�Sine�Qua�
Non�of�Leadership�of�
Folderol.”�Academy of
Management Perspec-
tives�25�(2011),�pp.�
45–58;�and�Chien�
Farh,�C.I.C.;�M.G.�
Seo;�and�P.E.�Tesluk.�
“Emotional�Intel-
ligence,�Teamwork�
Effectiveness,�and�
Job�Performance:�The�
Moderating�Role�of�
Job�Context.”�Journal
of Applied Psychol-
ogy�97�(2012),�pp.�
890–900.
10.33� Cherniss,�“The�
Business�Case”;�and�
Schwartz,�“How�Do�
You�Feel?”
10.34� “Emotional�Intel-
ligence�Gets�More�
Sales.”�A&P Sales
Improvement,�Novem-
ber�20,�2010,�http://
www.a-and-p.com/
apblog/?tag=loreal;�
and�Cherniss,�“The�
Business�Case.”
10.35� Joseph,�D.,�J.�Jin;�D.�
A.�Newman;�and�E.�
H.�O’Boyle.�”Why�
Does�Self-Reported�
Emotional�Intelligence�
Predict�Job�Perfor-
mance?”�Journal of
Applied Psychology�100�
(2015),�pp.�298–342.
10.36� Cote�and�Min-
ers,�“Emotional�
Intelligence.”
10.37� Austin,�E.J.;�D.�Far-
relly;�C.�Black;�and�H.�
Moore.�“Emotional�
Intelligence,�Machia-
vellianism�and�Emo-
tional�Manipulation:�
Does�EI�Have�a�Dark�
Side?”�Personality
and Individual
Differences�43�(2007),�
Final PDF to printer
332 C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 332� 09/28/17��11:18�AM
pp.�179–89;�and�
Winkel,�D.�E.;�R.L.�
Wyland;�M.A.�Shaf-
fer;�and�P.�Clason.�
“A�New�Perspective�
on�Psychological�
Resources:�Unantici-
pated�Consequences�
of�Impulsivity�and�
Emotional�Intel-
ligence.”�Journal of
Occupational and
Organizational Psy-
chology�84�(2010),�pp.�
79–94.
10.38� Ibid.
10.39� Carr,�D.�“Emotional�
Intelligence,�PSE�and�
Self�Esteem:�A�Cau-
tionary�Note.”�Pastoral
Care in Education�18�
(2000),�pp.�27–33.
10.40� Bar-On,�Development
of the Bar-On EQ-i.
10.41� Conte,�J.M.,�and�M.A.�
Dean.�“Can�Emo-
tional�Intelligence�
Be�Measured?”�In�A
Critique of Emotional
Intelligence: What Are
the Problems and How
Can They Be Fixed?,�
ed.�K.R.�Murphy.�
Mahwah,�NJ:��
Erlbaum,�2006,��
pp.�54–81.
10.42� Law�et�al.,�“The�Con-
struct�and�Criterion�
Validity.”
10.43� Fleishman,�E.A.�
“Human�Abilities�
and�the�Acquisition�
of�Skill.”�In�Acquisi-
tion of Skill,�ed.�E.A.�
Bilodeau.�New�York:�
Academic�Press,�1966,�
pp.�147–67;�Fleish-
man�et�al.,�“Abilities”;�
Fleishman,�E.A.,�and�
M.E.�Reilly.�Handbook
of Human Abilities:
Definitions, Measure-
ments, and Job Task
Requirements.�Palo�
Alto,�CA:�Consulting�
Psychologists�Press,�
1992;�and�O*NET�
website.
10.44� Kazmi,�S.�“Firefight-
ers�Put�Through�Paces�
in�One-Stop�Testing.”�
Knight Ridder Tribune
Business News,�
August�18,�2005,�p.�
1,�ProQuest�database�
(accessed�May�13,�
2006).
10.45� Safer,�W.�“How�
Monster�Cable�Got�
Wired�for�Growth.”�
CNNMoney.com,��
April�20,�2009,��
http://money.cnn�
.com/2009/04/30/
smallbusiness/how_
monster_cable_got_
started.fsb/index.htm.
10.46� Lubinski,�D.�“Intro-
duction�to�the�Special�
Section�on�Cognitive�
Abilities:�100�Years�
after�Spearman’s�
(1904)�“‘General�
Intelligence,’�‘Objec-
tively�Determined�and�
Measured.’”�Journal of
Personality and Social
Psychology�86�(2004),�
pp.�96–111.
10.47� Hunter,�J.E.,�and�F.L.�
Schmidt.�“Intelligence�
and�Job�Performance:�
Economic�and�Social�
Implications.”�Psychol-
ogy, Public Policy, and
Law�2�(1996),�pp.�
447–72;�Lubinski,�
“Introduction�to�the�
Special�Section”;�and�
Schmidt,�F.L.,�and�
J.�Hunter,�“General�
Mental�Ability�in�
the�World�of�Work:�
Occupational�Attain-
ment�and�Job�Perfor-
mance.”�Journal of
Personality and Social
Psychology�86�(2004),�
pp.�162–73.
10.48� Seligman,�D.�“Brains�
in�the�Office.”�
Fortune,�January�13,�
1997,�p.�38,�ProQuest�
database�(accessed�
May�14,�2007).
10.49� Schmidt,�F.L.,�and�
J.E.�Hunter.�“Select�
on�Intelligence.”�In�
Blackwell Handbook
of Principles of Organi-
zational Behavior,�ed.�
E.A.�Locke.�Malden,�
MA:�Blackwell,�2000,�
pp.�3–14.
10.50� Frey,�M.C.,�and�D.K.�
Detterman.�“Scho-
lastic�Assessment�of�
g?�The�Relationship�
between�the�Scholas-
tic�Assessment�Test�
and�General�Cognitive�
Ability.”�Psychological
Science�15�(2004),��
pp.�373–78.
10.51� Keiser�et�al.,�”Why�
Women�Perform�Bet-
ter�in�College�Than�
Admission�Scores�
Would�Predict.”�
10.52� Korbin,�J.L.;�W.J.�
Camara;�and�G.B.�
Milewski.�“The�Utility�
of�the�SAT�I�and�SAT�
II�for�Admissions�
Decisions�in��
California�and�the�
Nation.”�The College
Board, Research
Report No. 2002–6.�
New�York:�College�
Entrance�Examination��
Board,�2002.
Final PDF to printer
333C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 333� 09/28/17��11:18�AM
10.53� Kuncel,�N.R.;�M.A.�
Crede;�and�L.L.�
Thomas.�“A�Meta-
Analysis�of�the�
Predictive�Validity�
of�the�Graduate�
Management�Admis-
sion�Test�(GMAT)�
and�Undergraduate�
Grade�Point�Average�
(UGPA)�for�Graduate�
Student�Academic�
Performance.”�Acad-
emy of Management
Learning & Education�
6�(2007),�pp.�51–68;�
and�Kuncel,�N.R.,�and�
S.A.�Hezlett.�“Fact�
and�Fiction�in�Cogni-
tive�Ability�Testing�
for�Admissions�and�
Hiring�Decisions.”�
Current Directions
in Psychological
Science�19�(2010),��
pp.�339–45.
10.54� Hunter�and�Schmidt,�
“Intelligence�and�
Job�Performance”;�
and�Schmidt,�F.L.;�
J.E.�Hunter;�A.N.�
Outerbridge;�and�S.�
Goff.�“The�Joint�Rela-
tions�of�Experience�
and�Ability�with�Job�
Performance:�A�Test�
of�Three�Hypotheses.”�
Journal of Applied
Psychology�73�(1988),�
pp.�46–57.
10.55� Gonzalez-Mule,�E.;�
M.K.�Mount;��and�I.S.�
Oh.�”A�Meta-Analysis�
of�the�Relationship�
between�General�Men-
tal�Ability�and�Non-
task�Performance.”�
Journal of Applied
Psychology�99�(2014),�
pp.�1222–43;�and�
Motowidlo,�S.J.;�W.S.�
Borman;�and�M.J.�
Schmit.�“A�Theory�of�
Individual�Differences�
in�Task�and�Contex-
tual�Performance.”�
Human Performance�
10�(1997),�pp.�71–83.
10.56� LePine,�J.A.;�J.A.�
Colquitt;�and�A.�
Erez.�“Adaptability�
to�Changing�Task�
Contexts:�Effects�of�
General�Cognitive�
Ability,�Conscientious-
ness,�and�Openness�to�
Experience.”�Person-
nel Psychology�53�
(2000),�pp.�563–93;�
and�Schmidt�and�
Hunter,�“Select�on�
Intelligence.”
10.57� Boudreau,�J.W.;�W.R.�
Boswell;�T.A.�Judge;�
and�R.D.�Bretz.�“Per-
sonality�and�Cognitive�
Ability�as�Predictors�
of�Job�Search�among�
Employed�Managers.”�
Personnel Psychology�
54�(2001),�pp.�25–50;�
Colarelli,�S.M.;�R.A.�
Dean;�and�C.�Kon-
stans.�“Comparative�
Effects�of�Personal�
and�Situational�
Influences�on�Job�
Outcomes�of�New�Pro-
fessionals.”�Journal of
Applied Psychology�72�
(1987),�pp.�558–66;�
and�Dickter,�D.N.;�M.�
Roznowski;�and�D.A.�
Harrison.�“Temporal�
Tempering:�An�Event�
History�Analysis�
of�the�Process�of�
Voluntary�Turnover.”�
Journal of Applied
Psychology�81�(1996),�
pp.�705–16.
10.58� Boudreau�et�al.,�“Per-
sonality�and�Cognitive�
Ability.”
10.59� “Brain�Teasers�Help�
Google�Recruit�
Workers.”�CNN.com
Technology,�November�
4,�2004,�http://www�
.topcoder.com/�
pressroom/cnn_�
110404 .
10.60� Ibid.
10.61� Carlson,�N.�“15�
Google�Interview�
Questions�That�Will�
Make�You�Feel�Stu-
pid.”�Business Insider
SAI,�November�8,�
2010,�http://www�
.businessinsider�
.com/15-google-
interview-questions-
that-will-make-you-feel-
stupid-2010-11;�and�
Kaplan,�M.�“Want�a�
Job�at�Google?�Try�
These�Brainteasers�
First.”�CNNMoney
.com,�August�30,�2007,�
http://money.cnn�
.com/2007/08/29/�
technology/brain_�
teasers.biz2/index.htm.
10.62� Poundstone,�W.�How
Would You Move
Mount Fuji: Microsoft’s
Cult of the Puzzle.�New�
York:�Little,�Brown,�
2003.
10.63� Wonderlic�website,�
http://www.wonderlic�
.com/Products/�
product.asp?prod_
id=4�(accessed��
July�12,�2006).
10.64� Lyons,�B.D.;�B.J.�Hoff-
man;�J.W.�Michel.�
“Not�Much�More�
Than�g?�An�Examina-
tion�of�the�Impact�of�
Intelligence�on�NFL�
Performance.”�Human
Performance�22�
(2009),�pp.�225–45.
Final PDF to printer
334 C H A P T E R 1 0 Ability
coL27660_ch10_304-334.indd 334� 09/28/17��11:18�AM
10.65� Campbell,�J.P.�”Group�
Differences�and�
Personnel�Decisions:�
Validity,�Fairness�and�
Affirmative�Action.”�
Journal of Vocational
Behavior�49�(1996),�
pp.�122–58.
10.66� Berry,�C.M.,�and�P.�
Zhao.�“Addressing�
Criticisms�of�Exist-
ing�Predictive�Bias�
Research:�Cognitive�
Ability�Test�Scores�
Still�Overpredict�Afri-
can�Americans’�Job�
Performance.”��Jour-
nal of Applied Psychol-
ogy�100�(2015),�pp.�
162–79;�Hartigan,�J.�
A.,�and�A.K.�Wigdor.��
Fairness in Employ-
ment Testing: Validity
Generalization, Minor-
ity Issues and The
General Aptitude Test
Battery. Washing-
ton,�DC:�National�
Academy�Press,�1989;�
and�Mattern,�K.D.,�
and�B.F.�Patterson.�
“Test�of�Slope�and�
Intercept�Bias�in�
College�Admissions:�
A�Response�to�
Aguinis,�Culpepper,�
and�Pierce�(2010).”��
Journal of Applied
Psychology�98�(2013),�
pp.�134–47.
10.67� Bosco,�F.;�D.G.�
Allen;�and�K.�Singh.�
“Executive�Attention:�
An�Alternative�Per-
spective�on�General�
Mental�Ability,�
Performance,�and�Sub-
group�Differences.”��
Personnel Psychol-
ogy�68�(2015),�pp.�
859–98;�De�Corte,�W.;�
F.�Lievens;�and�P.R.�
Sackett.�“Combining�
Predictors�to�Achieve�
Optimal�Trade-offs�
Between�Selection�
Quality�and��
Adverse�Impact.”��
Journal of Applied
Psychology�92�(2007),��
pp.�1380–93;�Ployhart,�
R.E.,�and�B.C.�Holtz.�
“The�Diversity-�
Validity�Dilemma:�
Strategies�for�Reduc-
ing�Racioethnic�and�
Sex�Subgroup�Differ-
ences�and�Adverse�
Impact�in�Selection.”��
Personnel Psychol-
ogy�61�(2008),�pp.�
153–72;�and�Wee,�S.;�
D.A.�Newman;�and�
D.L.�Joseph.�“More�
Than�g:�Selection�
Quality�and�Adverse�
Impact�Implications�of�
Considering�Second-
Stratum�Cognitive�
Abilities.”��Journal of
Applied Psychology�99�
(2014),�pp.�547–63.
10.68� Adler,�A.B.,�et�al.�
“Mental�Skills�Train-
ing�with�Basic�Com-
bat�Training�Soldiers:�
A�Group-Randomized�
Trial.”�Journal of
Applied Psychology�100�
(2015),�pp.�1752–64.�
Final PDF to printer
coL27660_ch11_335-373.indd 335 10/30/17 08:32 AM
CHAPTER 11
Teams: Characteristics and Diversity
CHAPTER 12
Teams: Processes and Communication
CHAPTER 13
Leadership: Power and Negotiation
CHAPTER 14
Leadership: Styles and Behaviors
GROUP
MECHANISMS
P A R T
4
Final PDF to printer
coL27660_ch11_335-373.indd 336 10/30/17 08:32 AM
11
LEARNING GOALS
11.1 What are the five general team types and their defining characteristics?
11.2 What are the three general types of team interdependence?
11.3 What factors are involved in team composition?
11.4 What are the types of team diversity, and how do they influence team functioning?
11.5 How do team characteristics influence team effectiveness?
11.6 How can team compensation be used to manage team effectiveness?
After reading this chapter, you should be able to answer the following questions:
Teams: Characteristics
and Diversity
INDIVIDUAL
OUTCOMES
INDIVIDUAL
MECHANISMS
INDIVIDUAL
CHARACTERISTICS
ORGANIZATIONAL
MECHANISMS
Organizational
Culture
Organizational
Structure
Teams:
Processes &
Communication
Motivation
Trust, Justice,
& Ethics
Learning &
Decision Making
Stress
Leadership:
Power &
Negotiation
Job
Satisfaction
Leadership:
Styles &
Behaviors
Organizational
Commitment
Job
Performance
GROUP
MECHANISMS
Ability
Personality &
Cultural Values
Teams:
Characteristics &
Diversity
Final PDF to printer
coL27660_ch11_335-373.indd 337 10/30/17 08:32 AM
W
hich grocery store chain comes to mind when you
think of high quality natural and organic foods?
Chances are the answer to this question is Whole
Foods. Founded in 1980, Whole Foods is now a Fortune
500 company, with sales of nearly $15 billion generated
from its 460 stores and 87,000 employees. Even if there’s
not a Whole Foods market located near you, or you could
care less about whether your food has hydrogenated fats
or artificial colors and preservatives, you may be familiar
with the company because of accolades and coverage from
news and business publications. As examples, the com-
pany has been named to Fortune’s list of the “100 Best
Companies to Work For” each year since the list’s inception
in 1998. It’s also one of Fortune’s “World’s Most Admired
Companies,” and has appeared on Newsweek’s list of “Top
Green Companies in the U.S.,” and Forbes’ list of “100 Most
Trustworthy Companies in America.”
So, what accounts for Whole Foods’ tremendous growth
and reputation? To sum it up in one word, the answer may be
“teams.” The original idea behind Whole Foods was that the
world was ready for a natural foods supermarket. However,
the company’s success has been driven largely by a strong
set of values that are enacted through teams and support-
ive team practices. The company believes that teams not
only result in the type of collective learning and intelligence
that promotes incremental progress, but also that teams
reinforce a sense of community and dedication to the com-
pany, customers, and other stakeholders in society.
Although many companies claim that they value and rely
on teams, Whole Foods’ belief in teams is all-encompassing.
Each store is structured around 8 to 10 teams, and because
these teams are largely self-managed, they are teams in
the true sense of the word. Team members not only work
together to carry out the responsibilities of their depart-
ment, but they also meet regularly to discuss issues, make
decisions, and solve problems. Team members are also
given feedback about how well their team is performing
relative to historical standards and to other teams, and their
compensation is tied to the performance of their team as
well. Because the fate of team members is shared at Whole
Foods, employees are motivated to work cooperatively, and
this maximizes the chance that the interests of everyone are
satisfied.
WHOLE FOODS
©Brooks Kraft/Getty Images
Final PDF to printer
338 C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 338 10/30/17 08:32 AM
T E A M C H A R AC T E R I S T I C S A N D D I V E R S I T Y
The topic of teams is likely familiar to almost anyone who might be reading this book. In fact,
you’ve probably had firsthand experience with several different types of teams at different points
in your life. As an example, most of you have played a team sport or two (yes, playing soccer in
gym class counts). Most of you have also worked in student teams to complete projects or assign-
ments for courses you’ve taken. Or perhaps you’ve worked closely with a small group of people
to accomplish a task that was important to you—planning an event, raising money for a charity,
or starting and running a small cash business. Finally, some of you have been members of organi-
zational teams responsible for making a product, providing a service, or generating recommenda-
tions for solving company problems.
But what exactly is a team, and what is it that makes a team more than a “group”? A team
consists of two or more people who work interdependently over some time period to accomplish
common goals related to some task-oriented purpose.1 You can think of teams as a special type of
group, where a group is just a collection of two or more people. Teams are special for two reasons.
First, the interactions among members within teams revolve around a deeper dependence on one
another than the interactions within groups. Second, the interactions within teams occur with a
specific task-related purpose in mind. Although the members of a friendship group may engage
in small talk or in-depth conversations on a frequent basis, the members of a team depend on
one another for critical information, materials, and actions that are needed to accomplish goals
related to their purpose for being together.
The use of teams in today’s organizations is widespread. National surveys indicate that teams
are used in the majority of organizations in the United States, regardless of whether the organiza-
tion is large or small.2 In fact, some researchers suggest that almost all major U.S. companies are
currently using teams or planning to implement them, and that up to 50 percent of all employees
in the United States work in a team as part of their job.3 Thus, whereas the use of teams was lim-
ited to pioneers such as Procter & Gamble in the 1960s, teams are currently used in all types of
industries to accomplish all the types of work necessary to make organizations run effectively.4
Why have teams become so widespread? The most obvious reason is that the nature of today’s
work requires them. As work has become more complex, interactions among multiple team
members have become more vital. This is because interactions allow the team to pool comple-
mentary knowledge and skills. As an example, surgical teams consist of individuals who received
specialized training in the activities needed to conduct surgical procedures. The team consists of
A surgical team consists of
specialized members who
depend on one another
to accomplish tasks that
are both complex and
important. Why might you
not want to have surgery
conducted by a surgical
team that functions like a
group?
©Stockbyte/Getty Images
Final PDF to printer
339C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 339 10/30/17 08:32 AM
a surgeon who received training for the procedure in question, an anesthesiologist who received
training necessary to manage patient pain, and an operating room nurse who was trained to pro-
vide overall care for the patient.
Teams may also be useful to organizations in ways beyond just accomplishing the work itself.
For example, one study revealed that problem-solving teams composed primarily of rank-and-file
workers could boost productivity in steel mills by devising ways to increase the efficiency of pro-
duction lines and quality control processes.5 Although implementing teams often makes sense in
settings such as these, for which the nature of the work and work-related problems are complex,
teams vary a great deal from one another in terms of their effectiveness. The goal of this chapter,
as well as the next, is to help you understand factors that influence team effectiveness. Fortu-
nately, there has been over a century of research on this topic that we can refer to in this effort.6
W H AT C H A R AC T E R I S T I C S C A N B E U S E D
TO D E S C R I B E T E A M S ?
This is the first of two chapters on teams. This chapter focuses on team characteristics—the task,
unit, and member qualities that can be used to describe teams and that combine to make some
teams more effective than others. Team characteristics provide a means of categorizing and exam-
ining teams, which is important because teams come in so many shapes and sizes. Team char-
acteristics play an important role in determining what a team is capable of achieving and may
influence the strategies and processes the team uses to reach its goals. As you will see, however,
there’s more to understanding team characteristics than meets the eye. Team characteristics such
as diversity, for example, have many meanings, and its effect on team functioning and effective-
ness depends on what type of diversity you’re concerned with as well as several additional compli-
cating factors. Chapter 12 will focus on team processes and communication—the specific actions
and behaviors that teams can engage in to achieve synergy. The concepts in that chapter will help
explain why some teams are more or less effective than their characteristics would suggest they
should be. For now, however, we turn our attention to this question: “What characteristics can be
used to describe teams?”
T E A M T Y P E S
One way to describe teams is to take advantage of existing taxonomies that place teams into vari-
ous types. One such taxonomy is illustrated in Table 11-1. The table illustrates that there are five
general types of teams and that each is associated with a number of defining characteristics.7 The
most notable characteristics include the team’s purpose, the length of the team’s existence, and
the amount of time involvement the team requires of its individual members. The sections to fol-
low review these types of teams in turn.
WORK TEAMS Work teams are designed to be relatively permanent. Their purpose is to produce
goods or provide services, and they generally require a full-time commitment from their members.
As an example of a work team, consider how cars and trucks are manufactured at Toyota.8 Teams
are composed of four to eight members who do the physical work, and a leader who supports the
team and coordinates with other teams. Although the teams are responsible for the work involved
in the assembly of the vehicles, they are also responsible for quality control and developing ideas
for improvements in the production process. Team members inspect each other’s work, and when
they see a problem, they stop the line until they are able to resolve the problem.
MANAGEMENT TEAMS Management teams are similar to work teams in that they are designed
to be relatively permanent; however, they are also distinct in a number of important ways. Whereas
work teams focus on the accomplishment of core operational-level production and service tasks,
management teams participate in managerial-level tasks that affect the entire organization. Spe-
cifically, management teams are responsible for coordinating the activities of organizational
11.1
What are the five general
team types and their defin-
ing characteristics?
Final PDF to printer
340 C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 340 10/30/17 08:32 AM
TABLE 11-1 Types of Teams
TYPE OF TEAM PURPOSE AND
ACTIVITIES
LIFE SPAN MEMBER
INVOLVEMENT
SPECIFIC EXAMPLES
Work team Produce goods or
provide services.
Long High Self-managed work
team
Production team
Maintenance team
Sales team
Management
team
Integrate activities of
subunits across busi-
ness functions.
Long Moderate Top management
team
Parallel team Provide recommenda-
tions and resolve
issues.
Varies Low Quality circle
Advisory council
Committee
Project team Produce a one-time
output (product, ser-
vice, plan, design, etc.).
Varies Varies Product design team
Research group
Planning team
Action team Perform complex
tasks that vary in
duration and take
place in highly vis-
ible or challenging
circumstances.
Varies Varies Surgical team
Musical group
Expedition team
Sports team
Sources: S.G. Cohen and D.E. Bailey, “What Makes Teams Work: Group Effectiveness Research from the Shop Floor to
the Executive Suite,” Journal of Management 27 (1997), pp. 239–90; and E. Sundstrom, K.P. De Meuse, and D. Futrell,
“Work Teams: Applications and Effectiveness.” American Psychologist 45 (1990), pp. 120–33.
subunits—typically departments or functional areas—to help the organization achieve its long-term
goals. Top management teams, for example, consist of senior-level executives who meet to make
decisions about the strategic direction of the organization. It may also be worth mentioning that
because members of management teams are typically heads of departments, their commitment to
the management team is offset somewhat by the responsibilities they have in leading their unit.
PARALLEL TEAMS Parallel
teams are composed of mem-
bers from various jobs who
provide recommendations to
managers about important
issues that run “parallel” to
the organization’s produc-
tion processes.9 Parallel teams
require only part-time commit-
ment from members, and they
can be permanent or tempo-
rary, depending on their aim.
Quality circles, for example,
consist of individuals who nor-
mally perform core produc-
tion tasks, but who also meet
A Toyota work team is
responsible for vehicle
assembly and quality
control.
©Toru Yamanaka/Getty Images
Final PDF to printer
341C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 341 10/30/17 08:32 AM
OB AT THE BOOKSTORE
INCLUSION
by Jennifer Brown (Charleston, SC: Advantage, 2016).
People may not be any quicker to address an injustice or an inequity than they were years ago,
but with tools such as Facebook, Twitter, Tumblr, Instagram, Snapchat, mobile-phone cameras,
and blogs, a broader community can be reached, and inequity becomes harder to hide or ignore.
With those words, author Jennifer Brown provides one of many rea-
sons why organizations need to change their approach to managing
a diverse workforce. Brown argues that diversity is often uncomfort-
able for people to talk about, and so rather than trying to find real
solutions to diversity problems, organizations have been somewhat
dismissive. For example, organizations that do not have many African
American or Hispanic employees often assert that the situation is
out of their control because there aren’t enough applicants from
those groups in the hiring pipeline. The author points out that
society has become more aware and less tolerant of bias and ineq-
uity, and that with the advent of social media, organizations will
find it increasingly difficult to remain unresponsive to issues that
were once cloaked. Brown also notes that employees tend to with-
hold discretionary effort and be less committed if they don’t feel
welcomed, valued, respected, and heard. Thus, the potential value
of having a diverse workforce can only be realized through efforts that help those from under-
represented groups feel that it is safe to bring more of their true selves to work.
Brown’s book is a call for organizations to become much more proactive and innovative in their
efforts to manage diversity. Implementing training programs, such as those that help employees
understand unconscious biases and stereotypes, may be a starting point, however, Brown suggests
that real success depends on an organization’s willingness to make changes that are more compre-
hensive. To this end, organizations have begun to implement employee resource groups, or ERGs.
Comprised of employees from underrepresented groups and their allies, ERGs serve to provide
support and guidance to members of their communities who may be experiencing diversity- or
inclusion-related problems. Additionally, EGRs provide input and potential solutions to organiza-
tions that seek to address the challenges of creating an inclusive environment where employees
feel they have the space to fully contribute and thrive.
©Roberts Publishing Services
regularly with individuals from other work groups to identify production-related problems and
opportunities for improvement. As an example of a more temporary parallel team, committees
often form to deal with unique issues or issues that arise only periodically. Examples of issues
that can spur the creation of committees include changes to work procedures, purchases of new
equipment or services, and nonroutine hiring. For an example of a parallel team used to address
important organizational issues, see our OB at the Bookstore feature.
PROJECT TEAMS Project teams are formed to take on “one-time” tasks that are generally com-
plex and require a lot of input from members with different types of training and expertise.10
Although project teams exist only as long as it takes to finish a project, some projects are quite
complex and can take years to complete. Members of some project teams work full-time, whereas
other teams demand only a part-time commitment. A planning team comprised of engineers,
architects, designers, and builders, charged with designing a suburban town center, might work
together full-time for a year or more. In contrast, the engineers and artists who constitute a design
Final PDF to printer
342 C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 342 10/30/17 08:32 AM
team responsible for creating an elec-
tric toothbrush might work together
for a month on the project while also
serving on other project teams.
ACTION TEAMS Action teams per-
form tasks that are normally limited
in duration. However, those tasks are
quite complex and take place in con-
texts that are either highly visible to
an audience or of a highly challenging
nature.11 Some types of action teams
work together for an extended period
of time. For example, sports teams
remain intact for at least one season,
and musical groups like the Rolling
Stones, ZZ Top, Aerosmith, Kiss, and
AC/DC sometimes stick together for decades. Other types of action teams stay together only as
long as the task takes to complete. Surgical teams and aircraft flight crews may only work together
as a unit for a single two-hour surgery or flight.
SUMMARY So how easy is it to classify teams into one of the types summarized in Figure 11-1?
Well, it turns out that teams often fit into more than one category. As an example, consider the
teams at Pixar, the company that has produced many computer-animated hit films, such as Toy
Story, Monsters Inc., Finding Nemo, Cars, Wall-E, Up, Brave, Monsters University, Inside Out, and
Finding Dory. On the one hand, because the key members of Pixar teams have mostly remained
together for each film the company has produced, it might seem like Pixar uses work teams.12 On
the other hand, because the creation of each film can be viewed as a project, and because mem-
bers are likely involved in multiple ongoing projects, it might seem reasonable to say that Pixar
uses project teams. It’s probably most appropriate to say that at Pixar, teams have characteristics
of both work teams and project teams.
VA R I AT I O N S W I T H I N T E A M T Y P E S
Even knowing whether a team is a project team, an action team, or some other type of team doesn’t
tell you the whole story. In fact, there are important variations within those categories that are needed
to understand a team’s functioning.13 As one example, teams can vary with respect to the degree to
which they have autonomy and are self-managed.14 If you’ve ever been on a team where members have
a great deal of freedom to work together to establish their own goals, procedures, roles, and member-
ship, you’ve worked on a team where the level of autonomy and self-management is high. You may
also have worked on a team where the level of autonomy and self-management is low. In these teams,
there are strict rules regarding goals, procedures, and roles, and team leaders or managers make
most of the decisions regarding management of the team with respect to membership. Research
The Australian Band AC/
DC, which was formed in
1973, is an example of an
action team that has stayed
together for an extended
period of time.
©Kevin Mazur/Getty Images
FIGURE 11-1 Types of Teams
Team
Types
• Work teams
• Management teams
• Parallel teams
• Project teams
• Action teams
Final PDF to printer
343C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 343 10/30/17 08:32 AM
has shown that although peo-
ple generally prefer working in
teams where the level of auton-
omy and self-management is
high, the appropriate level of
self-management with regard
to overall team effectiveness
may depend on a variety of fac-
tors.15 For example, researchers
have concluded that high lev-
els of self-management may be
most advantageous for teams
where team members’ have
high levels of team-relevant
knowledge obtained from out-
side experts and others in their
social networks.16
Another way that teams can vary relates to how the members typically communicate with each
other. Virtual teams are teams in which the members are geographically dispersed, and interde-
pendent activity occurs through electronic communications—primarily e-mail, instant messaging,
group calendars, web conferencing, social media, and other meeting tools.17 Although commu-
nications and group networking software is far from perfect, it has advanced to the point that
it’s possible for teams doing all sorts of work to function virtually, and it’s also true that many
teams do at least some of their work virtually even if the members are colocated. In fact, there
has been an 800 percent increase in the number of virtual employees over the last decade or so,
and it’s likely that there are tens of millions of virtual teams operating today.18 Companies such as
Con Edison, New York’s giant electric and gas utility, have invested significant resources in tech-
nology and training to help these teams function and perform more effectively.19 The same is
true at IBM, where at least 40 percent of the employees work virtually.20 At TRW, one of the
world’s largest automotive suppliers, virtual teams provide an efficient way to accomplish work
on projects when members are geographically separated.21 In fact, many companies in high-tech
industries are leveraging virtual teams to make continuous progress on work tasks without mem-
bers having to work 24/7. For example, Logitech, the Swiss company that makes things such as
computer mice and keyboards, universal remotes for home entertainment systems, and gaming
controllers, attributes its success to teams of designers and engineers who are located in different
places around the world.22 Although you might be inclined to believe that time-zone differences
would be a hindrance to this sort of team, Logitech turned it into a competitive advantage by let-
ting the work follow the sun.23 Specifically, work at Logitech is accomplished continuously because
members of a team who have finished their workday in one country electronically hand off the
work to team members in another country who have just arrived at the office. Because these
electronic hand-offs occur continuously, product development and other work needed to bring
innovative products to the market can be completed much more quickly.
In addition to varying in their “virtuality,” teams of any type can differ in the amount of experi-
ence they have working together. One way to understand this point is to consider what occurs in
teams at different stages of their development as they progress from a newly formed team to one
that’s well-established. According to the most well-known theory, teams go through a progression
of five stages shown in the top panel of Figure 11-2.24 In the first stage, called forming, members
orient themselves by trying to understand their boundaries in the team. Members try to get a feel
for what is expected of them, what types of behaviors are out of bounds, and who’s in charge. In
the next stage, called storming, members remain committed to ideas they bring with them to the
team. This initial unwillingness to accommodate others’ ideas triggers conflict that negatively
affects some interpersonal relationships and harms the team’s progress. During the next stage,
norming, members realize that they need to work together to accomplish team goals, and conse-
quently, they begin to cooperate with one another. Feelings of solidarity develop as members work
toward team goals. Over time, norms and expectations develop regarding what different members
The Pixar team, shown
here at the Cannes Film
Festival, has characteristics
of both work teams and
project teams. Trying to
characterize this team is
even more complicated
when you consider that
key members are involved
in the management of
the company, and their
involvement in the films
runs parallel to these other
responsibilities.
©Venturelli/Getty Images
Final PDF to printer
344 C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 344 10/30/17 08:32 AM
are responsible for doing. In the fourth stage of team development, which is called performing,
members are comfortable working within their roles, and the team makes progress toward goals.
Finally, because the life span of many teams is limited, there’s a stage called adjourning. In this
stage, members experience anxiety and other emotions as they disengage and ultimately separate
from the team.
But does this sequence of forming, storming, norming, performing, and adjourning apply to
the development of all types of teams? Chances are that you’ve had some experience with teams
that would lead you to answer this question with an emphatic “no.” In fact, although this theory
of group development is intuitively appealing and identifies things that may occur as teams gain
experience working together, there are factors in work organizations that can significantly alter
what occurs during a team’s life.25 One situation in which this developmental sequence is less
applicable is when teams are formed with clear expectations regarding what’s expected from the
team and its members. With many action teams, for example, there are established rules and
standard operating procedures that guide team members’ behaviors and their interactions with
one another. As a specific example, an aircraft flight crew doesn’t have to go through the form-
ing, storming, norming, and performing stages to figure out that the pilot flies the plane and the
flight attendant serves the beverages. As another example, though the adjourning stage only hap-
pens once for each type of team, the implications are likely to be more significant for team types
with longer life spans that require high member involvement. Dissolving a work team that’s been
together for four years is likely to trigger greater anxiety and stronger emotions among members
than a situation in which a committee that meets briefly once a month for a year is disbanded.
Another situation in which the development sequence is less applicable may be in certain
types of project teams that follow a pattern of development called punctuated equilibrium.26 This
sequence appears in the bottom panel of Figure 11-2. At the initial team meeting, members make
assumptions and establish a pattern of behavior that lasts for the first half of its life. That pattern
FIGURE 11-2 Two Models of Team Development
Some teams develop in a predictable sequence . . .
. . . whereas many develop in a less linear fashion.
Forming and
Pattern
Creation
Inertia
Process
Revision
Inertia
Punctuated Equilibrium
Time
Time TimeMidpoint
Forming Storming Norming Performing Adjourning
Final PDF to printer
345C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 345 10/30/17 08:32 AM
of behavior becomes a matter of habit for members and creates an inertia that continues until
roughly the midway point of the project. Then something remarkable happens: Members realize
that they have to change their approach to the task to complete it on time. Teams that take this
opportunity to plan a new approach during this transition tend to do well, and the new framework
dominates their behavior until task completion. However, teams that don’t take the opportunity to
change their approach tend to persist with their original pattern and may “go down with a sinking
ship.” Interestingly, the realization that things have to change at the midway point of task comple-
tion occurs regardless of the time frame of the project.
T E A M I N T E R D E P E N D E N C E
In addition to taxonomies of team types, we can describe teams by talking about the interdepen-
dence that governs connections among team members. In a general sense, you can think of inter-
dependence as the way in which the members of a team are linked to one another. That linkage
between members is most often thought of in terms of the interactions that take place as the team
accomplishes its work. However, linkages among team members also exist with respect to their
goals and rewards. In fact, you can find out where your student project team stands on different
aspects of interdependence using our OB Assessments feature.
TASK INTERDEPENDENCE Task interdependence refers to the degree to which team mem-
bers interact with and rely on other team members for the information, materials, and resources
needed to accomplish work for the team.27 As Figure 11-3 illustrates, there are four primary types
of task interdependence, and each requires a different degree of interaction and coordination.28
The type of task interdependence with the lowest degree of required coordination is pooled
interdependence.29 With this type of interdependence, group members complete their work assign-
ments independently, and then this work is simply “piled up” to represent the group’s output.
Consider what pooled interdependence would be like on a fishing boat. Each person would bait
a pole, drop the baited line into the water, reel the fish in, remove the fish from the hook, and,
finally, throw the fish into a tank filled with ice and other fish. At the end of the day, the boat’s
production would be the total weight of the fish that were caught.
The next type of task interdependence is called sequential interdependence.30 With this type of
interdependence, different tasks are done in a prescribed order, and the group is structured such that
the members specialize in these tasks. Although members in groups with sequential interdependence
interact to carry out their work, the interaction occurs only between members who perform tasks
that are next to each other in the sequence. Moreover, the member performing the task in the latter
part of the sequence depends on the member performing the task in the earlier part of the sequence,
but not the other way around. The classic assembly line in manufacturing contexts provides an excel-
lent example of this type of interdependence. In this context, an employee attaches a part to the unit
being built, and once this is accomplished, the unit moves on to another employee who adds another
part. The process typically ends with the unit being inspected and then packaged for shipping.
Reciprocal interdependence is the next type of task interdependence.31 Similar to sequential
interdependence, members are specialized to perform specific tasks. However, instead of a strict
sequence of activities, members interact with a subset of other members to complete the team’s
work. To understand reciprocal interdependence, consider a team of people who are involved in a
business that designs custom homes for wealthy clients. After meeting with a client, the salesper-
son would provide general criteria, structural and aesthetic details, and some rough sketches to an
architect who would work up some initial plans and elevations. The architect then would submit
the initial plans to the salesperson, who would review the plans with the customer. Typically, the
plans need to be revised by the architect several times, and during this process, customers have
questions and requests that require the architect to consult with other members of the team. For
example, the architect and structural engineer may have to meet to decide where to locate sup-
port beams and load-bearing walls. The architect and construction supervisor might also have to
meet to discuss revisions to a design feature that turns out to be too costly. As a final example,
the salesperson might have to meet with the designers to assist the customer in the selection of
additional features, materials, and colors, which would then need to be included in a revision of
the plan by the architect.
11.2
What are the three
general types of team
interdependence?
Final PDF to printer
346 C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 346 10/30/17 08:32 AM
OB ASSESSMENTS
SCORING AND INTERPRETATION
Task Interdependence: Sum up items 1–3. _______
Goal Interdependence: Sum up items 4–6. _______
Outcome Interdependence: Sum up items 7–9. _______
If you scored 14 or above, then your team may be above average on a particular dimension. If
you scored 13 or below, then your team may be below average on a particular dimension.
INTERDEPENDENCE
How interdependent is your student project team? This assessment is designed to measure three
types of interdependence: task interdependence, goal interdependence, and outcome interdepen-
dence. Read each of the following questions with a relevant student team in mind. Answer each
question using the response scale provided. Then follow the instructions below to score yourself.
(Instructors: Assessments on deep-level diversity, team role tendencies, and team viability can
be found in the PowerPoints in the Connect Library’s Instructor Resources and in the Connect
assignments for this chapter.)
1
TOTALLY
DISAGREE
2
DISAGREE
3
SOMEWHAT
DISAGREE
4
NEUTRAL
5
SOMEWHAT
AGREE
6
AGREE
7
TOTALLY
AGREE
1. The responsibilities of members of my team are interconnected.
2. I cannot be an effective team member unless my teammates provide information
or resources to me.
3. My teammates cannot be effective in their tasks unless I provide information or
resources to them.
4. My team’s goals determine my goals while working in this team
5. I think about my team’s goals when deciding how to prioritize my work activities.
6. The goals of my team strongly influence my teammates’ goals and priorities.
7. I receive rewards that are determined based on how well my team does.
8. My performance evaluations are a function of the effectiveness of my team.
9. The feedback I get about my performance is based largely on my team’s
performance.
Source: From M.A. Campion, E.M. Papper, and G.J. Medsker, “Relations between Work Team Characteristics and Effec-
tiveness: A Replication and Extension,” Personnel Psychology 49 (1996), pp. 429–52. John Wiley & Sons, Inc.
Finally, comprehensive interdependence requires the highest level of interaction and coordina-
tion among members as they try to accomplish work.32 In groups with comprehensive interde-
pendence, members have a great deal of discretion in terms of what they do and with whom they
interact in the course of the collaboration involved in accomplishing the team’s work. Teams at
IDEO, arguably the world’s most successful product design firm, function with comprehensive
interdependence. These teams are composed of individuals from very diverse backgrounds, and
Final PDF to printer
347C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 347 10/30/17 08:32 AM
FIGURE 11-3 Task Interdependence and Coordination Requirements
Pooled
Interdependence
Sequential
Interdependence
Reciprocal
Interdependence
Comprehensive
Interdependence
D
e
g
re
e
o
f
C
o
o
rd
in
a
tio
n
R
e
q
u
ir
e
d
Member
3
Member
1
Member
1
Member
2
Member
3
Member
3
Member
3
Member
4
Member
4
Member
2
Member
2
Member
1
Member
1
Member
4
Member
2
Member
4
Output
Output
Output
Output
they meet as a team quite often to share knowledge and ideas to solve problems related to their
design projects.33
It’s important to note that there’s no one right way to design teams with respect to task inter-
dependence. However, it’s also important to recognize the trade-offs associated with the different
types. On the one hand, as the level of task interdependence increases, members must spend
increasing amounts of time communicating and coordinating with other members to complete
tasks. This type of coordination can result in decreases in productivity, which is the ratio of
work completed per the amount of time worked. On the other hand, increases in task interde-
pendence increase the ability of the team to adapt to new situations. The more members interact
Final PDF to printer
348 C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 348 10/30/17 08:32 AM
and communicate with other members, the more
likely it is that the team will be able to devise solu-
tions to novel problems it may face.
GOAL INTERDEPENDENCE In addition to
being linked to one another by task activities,
members may be linked by their goals.34 A high
degree of goal interdependence exists when team
members have a shared vision of the team’s goal
and align their individual goals with that vision as
a result.35 To understand the power of goal inter-
dependence, visualize a small boat with several
people on board, each with a paddle.36 If each per-
son on the boat wants to go to the exact same place on the other side of a lake, they will all row
in the same direction, and the boat will arrive at the desired location. If, however, each person
believes the boat should go someplace different, each person will row in a different direction, and
the boat will have major problems getting anywhere. In most team contexts, there are asymmetries
in the goals of individual team members that interfere with the pursuit of team goals, and what
makes managing this situation difficult is that team members often don’t become aware of the
incompatibilities until it’s too late.37
So how do you create high levels of goal interdependence? One thing to do would be to ensure
that the team has a formalized mission statement that members buy into. Mission statements can
take a variety of forms, but good ones clearly describe what the team is trying to accomplish in
a way that creates a sense of commitment and urgency among team members.38 Mission state-
ments can come directly from the organization or leaders, but in many circumstances, it makes
more sense for teams to go through the process of developing their own mission statements. This
process not only helps members identify important team goals and the actions the team needs to
take to achieve these goals, but it also increases feelings of ownership toward the mission state-
ment itself. Table 11-2 describes a set of steps that a team could take to develop their own mission
statements.39
Although you might believe that the mission for some team tasks is very obvious, all too often
this isn’t the case. In student teams, for example, you might expect that the obvious goal in the
minds of the team members would be to learn the course material. However, it’s typically the
case that students come to a team with individual goals that are surprisingly different, and they
may never realize their goals are different because they don’t talk about them. Some students
might be more interested in “just getting by” with a passing grade because they already have a
job and just need to graduate. Other students might want to do well in the course, but are more
concerned with maintaining balance with the demands of their lives outside of school. Finally,
other students might be focused solely on their grades, perhaps because they want to get into a
prestigious graduate school in an unrelated discipline. Of course, the problem here is that each
of these goals is associated with a different approach to working in the team. Students who want
to learn the course material will work hard on the team assignments and will want to spend extra
time discussing assignment-related issues with teammates, students who just want to get by will do
the minimum amount of work, students who want to maintain their work–life balance will look for
the most efficient way to do things, and students who are focused on their grades would be willing
to take shortcuts that might inhibit learning. Although trying to reach a consensus on a team mis-
sion may not be easy in a situation in which the members have goals that vary along these lines,
researchers have found that teams of students experience significantly greater effectiveness if they
invest time and effort doing so soon after the team first forms.40
OUTCOME INTERDEPENDENCE The final type of interdependence relates to how members
are linked to one another in terms of the feedback and outcomes they receive as a consequence of
working in the team.41 A high degree of outcome interdependence exists when team members share
in the rewards that the team earns, with reward examples including pay, bonuses, formal feedback
and recognition, pats on the back, extra time off, and continued team survival. Of course, because
team achievement typically depends on the performance of each team member, high outcome
Face-to-face team meet-
ings that involve compre-
hensive interdependence
can consume a lot of time,
yet these meetings are an
important part of accom-
plishing work that requires
collaboration.
©Triangle Images/Getty Images
Final PDF to printer
349C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 349 10/30/17 08:32 AM
For a similar take on how to develop mission statements, see P.S. MacMillan, The Performance Factor: Unlocking the Secrets
of Teamwork, Nashville, Broadman & Holman Publishers, 2001, pp. 51–53.
TABLE 11-2 The Mission Statement Development Process
Steps in Mission Statement Development
1. The team should meet together in a room or virtually. Allow enough time (at least 3–4
hours) and avoid interruptions.
2. The team leader (or facilitator) should describe the purpose of a mission statement and
what it should look like. Emphasize that mission statements should include action verbs
and be relatively short (probably no more than four sentences).
3. The team leader (or facilitator) should clarify the team’s core responsibilities.
4. The team should brainstorm to identify themes to include in the mission statement.
5. Members draft preliminary mission statements. If the team is large enough, form sub-
groups to create first drafts.
6. Members (or subgroups) should share the first drafts with one another.
7. The team should identify the best ideas, and integrate them into a single mission
statement.
8. The mission statement should be evaluated using the following criteria:
Focus—Does the mission statement articulate a purpose that is sufficiently clear and
focused?
Meaningfulness—Does the mission statement reflect a purpose that is meaningful to the
members, and will accomplishing the purpose result in benefits that are important to the
members?
Realistic—Does the mission statement reflect something that the members believe they
can actually achieve?
Challenge—Does the mission statement convey a sense of challenge and urgency to
members?
9. The team should identify weak areas of the mission statement relative to the four criteria
in step 8 and revise accordingly.
10. Return to step 7 and continue the process until there’s consensus that the mission state-
ment inspires commitment among members to the same common purpose.
interdependence also implies that team members depend on the performance of other team mem-
bers for the rewards that they receive. In contrast, low outcome interdependence exists in teams in
which individual members receive rewards and punishments on the basis of their own individual
performance, without regard to the performance of the team. Research on project teams involved
in consulting, financial planning, and research and development has shown that higher levels of
outcome interdependence increase the amount of information shared among members, which
promotes learning, and, ultimately, team performance.42 As we discuss in the Application section
at the end of this chapter, the way a team is designed with respect to outcome interdependence
also has important implications for the level of cooperation and motivation in the team. See our
OB on Screen feature for an extreme example of outcome interdependence.
T E A M C O M P O S I T I O N
You probably already have a sense that team effectiveness hinges on team composition—or the
mix of people who make up the team. If you’ve been a member of a particularly effective team,
you may have noticed that the team seemed to have the right mix of knowledge, skills, abilities,
and personalities. Team members were not only capable of performing their role responsibilities
effectively, but they also cooperated and got along fairly well together. In this section, we identify
the most important characteristics to consider in team composition, and we describe how these
11.3
What factors are involved in
team composition?
Final PDF to printer
350 C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 350 10/30/17 08:32 AM
OB ON SCREEN
ARRIVAL
I have something I need you to translate for me.
With those words, Colonel G.T. Weber (Forest Whitaker) initiates the process of recruiting expert
linguist, Dr. Louise Banks (Amy Adams), for a very important team, in the movie Arrival (Dir. Denis
Villeneuve, 21 Laps Entertainment, 2016). You see, 12 extraterrestrial vessels touch down in loca-
tions across the globe—Australia, the Black Sea, China, Denmark, Japan, Pakistan, Siberia, Sierra-
Leone, Sudan, the United Kingdom, Venezuela, and Montana—and the government of each location
establishes a team to answer the all-important question: What are the intentions of the alien passen-
gers? Dr. Banks joins Colonel Weber’s Montana-based team, and applies her expertise and unique
insights to understand the alien language so that this question can be answered. There’s a lot riding
on the team’s success. After all, the aliens could possess the capability and will to destroy the earth!
Although the film centers on the role played by Dr. Banks, it also depicts a team with high levels
of task, goal, and outcome interdependence. Technicians operate various pieces of equipment used
by engineers and scientists from different fields who collaborate to interpret the meaning of the
complex symbols used by the aliens to communicate. Members of the team share the same goal
of trying to figure out what’s going on. And of course, members of the team share the same fate if
they fail to achieve this goal and the aliens’ intentions are less than friendly. The film also illustrates
that interdependence does not only occur within teams, but it also occurs between teams as well.
Initially, teams from the 12 sites share what they learn, so that, together, they can work to resolve
the situation. Over time, disagreements among the teams begin to surface, and the teams stop com-
municating with one another. However, because the aliens are in contact with each other, it’s clear
to all that an action taken by one team has consequences to all the teams. For example, when it
becomes evident that the Chinese team is preparing to attack the aliens, members of Weber’s team
argue for a preemptive strike against the aliens in anticipation of their potential retaliation.
©Atlaspix/Alamy
elements combine to influence team functioning and effectiveness. As shown in Figure 11-4, five
aspects of team composition are crucial: roles, ability, personality, diversity, and team size.
MEMBER ROLES A role is defined as a pattern of behavior that a person is expected to dis-
play in a given context.43 In a team setting, there are a variety of roles that members can take or
develop in the course of interacting with one another, and depending on the specific situation,
Final PDF to printer
351C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 351 10/30/17 08:32 AM
FIGURE 11-4 Five Aspects of Team Composition
Team
Composition
Member
Roles
Member
Personality
Team
Diversity
Team
Size
Member
Ability
the presence or absence of members who possess these roles may have a strong impact on team
effectiveness.44 One obvious way that roles can be distinguished is by considering the specific
sets of task-focused activities that define what the individual members are expected to do for
their team. For example, a soccer team consists of members who play positions, such as forward,
midfielder, defender, and goal keeper, that have unique responsibilities on the field. As another
example, top management teams often include a chief financial officer, a chief operations officer,
and a chief marketing officer. These team members may work together to develop and implement
an appropriate firm strategy, but they also have unique functional responsibilities related to day-
to-day operations of the firm.
Another way to distinguish roles is to consider what leaders and members do. In leader–staff
teams, the leader makes decisions for the team and provides direction and control over members
who perform assigned tasks, so this distinction makes sense in that the responsibilities of the
leader and the rest of the team are distinct.45 Typically, however, team members have some lati-
tude with respect to the behaviors they exhibit. In these situations, team roles can be described in
terms of categories that are more general than the task-focused roles described earlier. By general,
we mean that these roles can apply to many different types of teams. As shown in Table 11-3, these
general roles include team task roles, team-building roles, and individualistic roles.46
Team task roles refer to behaviors that directly facilitate the accomplishment of team tasks.
Examples include the orienter who establishes the direction for the team, the devil’s advocate who
offers constructive challenges to the team’s status quo, and the energizer who motivates team
members to work harder toward team goals. As you may have realized, the importance of specific
task-oriented roles depends on the nature of the work in which the team is involved. The orienter
role may be particularly important in teams that have autonomy over how to accomplish their
work. The devil’s advocate role may be particularly important in team contexts in which decisions
are “high stakes” in nature. Finally, the energizer role may be most important in team contexts in
which the work is important but not intrinsically motivating.
In contrast to task-oriented roles, team-building roles refer to behaviors that influence the quality
of the team’s social climate. For example, a team member who tends to be helpful to other team
members is fulfilling an important team-building role. Indeed, it has been shown that a single team
member who goes the extra mile in this way inspires greater levels of participation from other mem-
bers of the team.47 Similarly, a member who lightens things up during a contentious team meeting
by doing something humorous is also fulfilling a team-building role. The simple act of telling a joke
may foster additional humor and, in turn, a positive climate that enhances team functioning and
performance.48 Specific examples of team-building roles include the harmonizer who steps in to
Final PDF to printer
352 C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 352 10/30/17 08:32 AM
resolve differences among teammates, the encourager who praises the work of teammates, and the
compromiser who helps the team see alternative solutions that teammates can accept. In sum, and
as you may have gathered as you read these examples, the presence of members who take on team-
building roles helps their teams manage conflicts that could hinder team effectiveness.
Finally, whereas task roles and team-building roles focus on activities that benefit the team,
individualistic roles reflect behaviors that benefit the individual at the expense of the team. For
example, the aggressor “puts down” or deflates fellow teammates. The recognition seeker takes credit
for team successes. The dominator manipulates teammates to acquire control and power. If you’ve
ever had an experience in a team in which members took on individualistic roles, you probably real-
ize just how damaging they can be to the team. Individualistic role behaviors foster negative feelings
among team members, which serve to hinder a team’s ability to function and perform effectively.49
MEMBER ABILITY Team members possess a wide variety of abilities (see Chapter 10 on ability
for more discussion of such issues). Depending on the nature of the tasks involved in the team’s
work, some of these may be important to consider in team design. For example, for teams involved
in physical work, relevant physical abilities will be important to take into account. Consider the
types of abilities that are required of pit crew members in stock car racing, where margins of
victory can be one-tenth of a second. When a car pulls into pit row, crew members need to leap
over the pit wall and lift heavy tires, jacks, and other equipment to get the race car back on the
TABLE 11-3 Team and Individualistic Roles
TEAM TASK ROLES DESCRIPTION
Initiator-contributor Proposes new ideas
Coordinator Tries to coordinate activities among team members
Orienter Determines the direction of the team’s discussion
Devil’s advocate Offers challenges to the team’s status quo
Energizer Motivates the team to strive to do better
Procedural-technician Performs routine tasks needed to keep progress moving
TEAM-BUILDING ROLES DESCRIPTION
Encourager Praises the contributions of other team members
Harmonizer Mediates differences between group members
Compromiser Attempts to find the halfway point to end conflict
Gatekeeper-expediter Encourages participation from teammates
Standard setter Expresses goals for the team to achieve
Follower Accepts the ideas of teammates
INDIVIDUALISTIC ROLES DESCRIPTION
Aggressor Deflates teammates, expresses disapproval with hostility
Blocker Acts stubbornly resistant and disagrees beyond reason
Recognition seeker Brags and calls attention to himself or herself
Self-confessor Discloses personal opinions inappropriately
Slacker Acts cynically, or nonchalantly, or goofs off
Dominator Manipulates team members for personal control
Source: Adapted from K. Benne and P. Sheats, “Functional Roles of Group Members,” Journal of Social Issues 4 (1948),
pp. 41–49.
Final PDF to printer
353C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 353 10/30/17 08:32 AM
track—ideally in about 14 seconds. In this setting, flexibility, cardiovascular endurance, and explo-
sive strength are required, and in fact, racing teams have hired professional trainers and even built
gyms to improve these abilities of their pit crew members.50
It’s also important to take cognitive abilities into account when designing teams. General cog-
nitive ability is important to many different types of teams. In general, smarter teams perform
better because teamwork tends to be quite complex.51 Team members not only have to be involved
in several different aspects of the team’s task, but they also have to learn how best to combine
their individual efforts to accomplish team goals.52 In fact, the more that this type of learning
is required, the more important member cognitive ability becomes. For example, research has
shown that cognitive ability is more important to teams when team members have to learn from
one another to adapt to unexpected changes, compared with contexts in which team members
perform their assigned tasks in a routine fashion.53
Of course, not every member needs high levels of these physical or cognitive abilities. If you’ve
ever played Trivial Pursuit using teams, you might recall playing against another team in which only
one of the team members was smart enough to answer any of the questions correctly. In fact, in
tasks with an objectively verifiable best solution, the member who possesses the highest level of the
ability relevant to the task will have the most influence on the effectiveness of the team. These types
of tasks are called disjunctive tasks.54 You may also recall situations in which it was crucial that
everyone on the team possessed the relevant abilities. Returning to the pit crew example, stock cars
cannot leave the pit area until all the tires are mounted, and so the length of the pit stop is deter-
mined by the physical abilities of the slowest crew member. Tasks like this, for which the team’s per-
formance depends on the abilities of the “weakest link,” are called conjunctive tasks. Finally, there
are additive tasks, for which the contributions resulting from the abilities of every member “add up”
to determine team performance. The amount of money that a Girl Scout troop earns from selling
Thin Mints and Samoas is the sum of what each Girl Scout is able to sell on her own.
MEMBER PERSONALITY Team members also possess a wide variety of personality traits (see
Chapter 9 on personality and cultural values for more discussion of such issues). These personal-
ity traits affect the roles that team members take on,55 the norms that develop on the team,56 and
ultimately, how teams function and perform as units.57 For example, the agreeableness of team
members has an important influence on team effectiveness.58 Why? Because agreeable people
tend to be more cooperative and trusting, and these tendencies promote positive attitudes about
the team and smooth interpersonal interactions. Moreover, because agreeable people may be
more concerned about their team’s interests than their own, they should work hard on behalf of
the team.59 There’s a caveat regarding agreeableness in teams, however. Because agreeable people
tend to prefer harmony and cooperation rather than conflict and competition, they may be less
apt to speak up and offer constructive criticisms that might help the team improve.60 Thus, if a
team is composed of too many highly agreeable members, there’s a chance that the members will
behave in a way that enhances harmony of the team at the expense of task accomplishment.61
As another example, team composition in terms of members’ conscientiousness is important
to teams.62 After all, almost any team would benefit from having members who tend to be depend-
able and work hard to achieve team goals. What might be less obvious to you is the strong negative
effect on the team of having even one member who is particularly low on conscientiousness.63
To understand why this is true, consider how you would react to a team member who was not
dependable and did not appear to be motivated to work hard toward team goals. If you’re like most
people, you would find the situation dissatisfying, and you would consider different ways of deal-
ing with it. Some people might try to motivate the person to be more responsible and work harder;
others might try to get the person ejected from the team.64 The problem is that these natural reac-
tions to a low conscientiousness team member not only divert attention away from accomplishing
work responsibilities, but they also can result in some very uncomfortable and time-consuming
interpersonal conflicts. Moreover, even if you and the other members of the team work harder to
compensate for this person, it would be difficult for your team to perform as effectively as other
teams in which all members are more interpersonally responsible and engaged in the team’s work.
Finally, the personality characteristic of extraversion is relevant to team composition.65 People
who are extraverted tend to perform more effectively in interpersonal contexts and are more posi-
tive and optimistic in general.66 Therefore, it shouldn’t surprise you to read that having extraverted
Final PDF to printer
354 C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 354 10/30/17 08:32 AM
team members is generally beneficial to the social climate of the group, as well as to team effec-
tiveness in the eyes of supervisors.67 At the same time, however, research has shown that having
too many members who are very high on extraversion can hurt the team. The reason for this can
be attributed to extraverts’ tendency to be assertive and dominant. As you would expect when
there are too many members with these types of tendencies, power struggles and unproductive
conflict occur with greater frequency.68
DIVERSITY Another aspect of team composition refers to the degree to which members are
different from one another in terms of any attribute that might be used by someone as a basis of
categorizing people. We refer to those differences as team diversity.69 Trying to understand the
effects of diversity on teams is difficult because there are so many different characteristics that
may be used to categorize people. Beyond obvious differences among people in their physical
appearance, there can be separation among members in terms of their values and beliefs, variety
among members in their knowledge and expertise, and disparity among members in their social
status, power, and even their sense of time urgency and the way they like to pace their work.70
Moreover, diversity of team member characteristics may matter more or less depending on the
nature of the team and organizational context.71 For example, you might imagine how the dynam-
ics in a team consisting of both men and women could vary depending on whether the team is in
an organization dominated by men (or women) or whether it’s balanced in terms of the employ-
ees’ sex. Finally, there are multiple reasons different types of diversity influence team functioning
and effectiveness, and some of these reasons seem contradictory.72
One predominant theory that has been used to explain why diversity has positive effects is
called the value in diversity problem-solving approach.73 According to this perspective, diversity
in teams is beneficial because it provides for a larger pool of knowledge and perspectives from
which a team can draw as it carries out its work.74 Having greater diversity in knowledge per-
spectives stimulates the exchange of information, which in turn fosters learning among team
members.75 The knowledge that results from this learning is then shared and integrated with the
knowledge of other members, ultimately helping the team perform more effectively.76 Research
has shown that these benefits of diversity are more likely to occur when the team includes mem-
bers who are able and willing to put in the effort necessary to understand and integrate different
perspectives.77 Teams that engage in work that’s relatively complex and requires creativity tend
to benefit most from diversity, and research on teams that are diverse in terms of many different
characteristics related to knowledge and perspectives—ethnicity, expertise, personality, attitudes—
supports this idea.78
A theory that’s been used widely to explain why diversity may have detrimental effects on
teams is called the similarity-attraction approach.79 According to this perspective, people tend to
11.4
What are the types of team
diversity and how do they
influence team functioning?
A task that can go only as
quickly as the slowest team
member, like a pit stop in
a car race, is a conjunctive
task.
©Action Sports Photography/Shutterstock
Final PDF to printer
355C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 355 10/30/17 08:32 AM
be more attracted to others who are perceived as
more similar. People also tend to avoid interact-
ing with those who are perceived to be dissimilar,
to reduce the likelihood of having uncomfortable
disagreements. Consistent with this perspective,
research has shown that diversity on attributes
such as cultural background, race, and attitudes
is associated with communication problems and
ultimately poor team effectiveness.80
So it appears that there are two different the-
ories about diversity effects that are relevant to
teams, and each has been supported in research.
Which perspective is correct? As it turns out, a
key to understanding the impact of team diversity requires that you consider both the general type
of diversity and the length of time the team has been in existence.81
Surface-level diversity refers to diversity regarding observable attributes such as race, ethnic-
ity, sex, and age.82 Although this type of diversity may have a negative impact on teams early in
their existence because of similarity-attraction issues, those negative effects tend to disappear as
members become more knowledgeable about one another. In essence, the stereotypes that mem-
bers have about one another based on surface differences are replaced with knowledge regarding
underlying characteristics that are more relevant to social and task interactions.83
One complication here is that fault lines often occur in diverse groups, whereby informal sub-
groups develop based on similarity in surface-level attributes such as gender or other characteris-
tics.84 The problem with fault lines is that knowledge and information possessed by one subgroup
may not be communicated to other subgroups in a manner that might help the entire team per-
form more effectively. In a study of boards of directors, for example, the presence of strong fault
lines decreased the amount of discussion that board members had with each other in regards to
entrepreneurial issues that could affect their companies.85 Research has shown, however, that the
effects of subgroups depend on the type of subgroup, and that detrimental effects of having sub-
groups can be offset with training that reinforces the idea that teams may benefit from their diver-
sity.86 Leadership or reward practices that reinforce the value of sharing information and promote
a strong sense of team identity also help diverse teams perform more effectively.87
Deep-level diversity, in contrast, refers to diversity with respect to attributes that are less easy
to observe initially but that can be inferred after more direct experience. Differences in attitudes,
values, and personality are good examples of deep-level diversity.88 In contrast to the effects of
surface-level diversity, time appears to increase the negative effects of deep-level diversity on team
functioning and effectiveness.89 Over time, as team members learn more about one another, differ-
ences that relate to underlying values and goals become increasingly apparent. Those differences
can therefore create problems among team members that ultimately result in reduced effectiveness.
Fortunately, it appears that the negative effects of deep-level diversity can be managed.90 As an
example, diversity in members’ approach to pursing goals has been shown to hinder team func-
tioning and effectiveness, but this effect can be reduced if teams are instructed to take the time
to reflect on their progress toward goals and their strategies.91 Deep-level diversity has also been
shown to have positive effects on team creativity when members are instructed to take the perspec-
tive of their teammates.92 As another example, negative effects of deep-level diversity with respect
to members’ values have been found to be reduced when team leaders emphasize the teams’ task
and provide explicit direction regarding team procedures, standards, roles, and expectations.93 We
should also point out, however, that team leaders can also exacerbate problems associated with
deep-level diversity. Conflict that results from diversity in members’ values appears to increase in
teams with leaders who emphasize things like freedom of expression and participation.94 See our
OB Internationally feature for a discussion of the challenges of managing deep-level diversity in
teams that include members from different cultures.
We also should mention an important caveat here. Although personality is normally consid-
ered a deep-level diversity variable,95 some specific personality types do not function this way.96
In the previous section on personality, for example, we pointed out that though having team
Surface-level diversity can
sometimes create issues
for teams as they begin
their tasks, but such prob-
lems usually disappear
over time.
©Fuse/Getty Images
Final PDF to printer
356 C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 356 10/30/17 08:32 AM
members who are extraverted and agreeable is generally a good thing, problems arise if a team has
too many members with these attributes. So whereas diversity on most deep-level characteristics
is problematic for teams, this claim does not apply to extraversion and agreeableness, because for
these two personality characteristics, teams are likely to benefit from having a mix of members.
TEAM SIZE Two adages are relevant to team size: “the more the merrier” and “too many cooks
spoil the pot.” Which statement do you believe is true in terms of how many members to include
on a team? The answer, according to the results of one meta-analysis, is that having a greater
number of members is beneficial for management and project teams but not for teams engaged in
production tasks.97 Management and project teams engage in work that’s complex and knowledge
intensive, and these teams therefore benefit from the additional resources and expertise contrib-
uted by additional members.98 In contrast, production teams tend to engage in routine tasks that
are less complex. Having additional members beyond what’s necessary to accomplish the work
tends to result in unnecessary coordination and communication problems. Additional members
therefore may be less productive because there’s more socializing, and they feel less accountable
for team outcomes.99 Although making a claim about the absolute best team size is impossible,
research with undergraduate students concluded that team members tend to be most satisfied
with their team when the number of members is between four and five.100 Of course, there are
Businesses are increasingly using teams composed of members from different cultures, and so
teams today often possess members who differ from one another in terms of their attitudes, val-
ues, ideas, goals, and behaviors. These types of teams, called multicultural teams, can approach
problems from several different perspectives, which opens the door to highly innovative solu-
tions. Cultural diversity also allows teams to serve a diverse customer base that may differ in terms
of culture and nationality.
Unfortunately, the attributes that give multicultural teams these advantages also give them
disadvantages. As an example, people from different cultures communicate differently, which can
lead to misunderstandings. For example, to people in the United States, the phrase “to table some-
thing” means to put it off until later, whereas to people in some European countries, it means dis-
cuss it right now. Imagine your reaction if you didn’t know this difference, and you told a team you
were leading that you wanted to table something, and then one of your team members started to
discuss options and recommendations about the issue. There are differences in the directness of
communications as well. Westerners tend to be very direct and to the point, but to people in other
countries, such as Japan, this directness may cause embarrassment and a sense of disrespect.
There are also cultural differences in decision-making processes. In some cultures, decisions can
be made only after careful consideration and reconsideration of all relevant issues, which is much
different from the style in other cultures, such as the United States, where decisions are made
rather quickly and with less analysis. Although these differences might seem trivial, they often
lead to misunderstandings that reduce the willingness of team members to cooperate.
So how can multicultural teams be managed to ensure the advantages outweigh the disadvan-
tages? Although there’s no one best way to manage multicultural teams, one proven approach is to
encourage team members to take the time to communicate openly with each other about cultural
differences and to proactively develop strategies the team can use to accommodate them.
OB INTERNATIONALLY
Sources: J. Brett, K. Behfar, and M.C. Kern, “Managing Multicultural Teams,” Harvard Business Review 84 (November
2006), pp. 84–91; S. Gupta, “Mine the Potential of Multicultural Teams: Mesh Cultural Differences to Enhance Produc-
tivity,” HR Magazine (October 2008), pp. 79–84; M. Harris, Cultural Anthropology, 2nd ed. (New York: Harper and Row,
1987); and H.C. Triandis, Culture and Social Behavior (New York: McGraw-Hill, 1994).
Final PDF to printer
357C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 357 10/30/17 08:32 AM
other rules of thumb you can use to keep team size optimal. Jeff Bezos, the CEO of Amazon.com,
uses the two-pizza rule: “If a team can’t be fed by two pizzas, it’s too large.”101
S U M M A RY: W H AT C H A R AC T E R I ST I C S CA N B E U S E D
TO D E S C R I B E T E A M S ?
The preceding sections illustrate that there are a variety of characteristics that can be used to
describe teams. As Figure 11-5 illustrates, teams can be described using taxonomies of team types.
For example, teams can be described by categorizing them as a work team, a management team,
a parallel team, a project team, or an action team. Teams can also be described using the nature
of the team’s interdependence with regard to its task, goals, and outcomes. Finally, teams can be
described in terms of their composition. Relevant member characteristics include member roles,
member ability, member personality, member diversity, and team size.
FIGURE 11-5 What Characteristics Can Be Used to Describe Teams?
Team
Interdependence
Team
Types
Team
Composition
Member
Roles
Member
Personality
Team
Diversity
Team
Size
Member
Ability
Task
Interdependence
Goal
Interdependence
Outcome
Interdependence
Team
Characteristics
• Work teams
• Management
• Parallel teams
• Project teams
• Action teams
teams
Final PDF to printer
358 C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 358 10/30/17 08:32 AM
H O W I M P O R TA N T A R E T E A M C H A R AC T E R I S T I C S ?
In previous chapters, we have described individual characteristics and mechanisms and discussed
how these variables affect individual performance and commitment. In this chapter, we’re con-
cerned with team characteristics, and so naturally, we’re interested in how they influence team
effectiveness. One aspect of team effectiveness is team performance, which may include metrics
such as the quantity and quality of goods or services produced, customer satisfaction, the effec-
tiveness or accuracy of decisions, victories, completed reports, and successful investigations. Team
performance in the context of student project teams most often means the quality with which the
team completes assignments and projects, as well as the grades they earn.
A second aspect of team effectiveness is team commitment, which is sometimes called team
viability. Team viability refers to the likelihood that the team can work together effectively into the
future.102 If the team experience is not satisfying and the members do not feel a bond with one
another or with the team itself, members may become disillusioned and focus their energy on activi-
ties away from the team. Although a team with low viability might be able to work together on short-
term projects, over the long run, a team such as this is bound to have significant problems.103 Rather
than planning for future tasks and working through issues that might improve the team, members of
a team with low viability are more apt to be looking ahead to the team’s ultimate demise.
Of course, it’s difficult to summarize the relationship between team characteristics and team
performance and commitment when there are so many characteristics that can be used to describe
teams. Here we focus our discussion on the impact of task interdependence. We focus on task inter-
dependence because it’s one of the most important characteristics that distinguishes true teams
from mere groups of individuals. As Figure 11-6 shows, it turns out that the relationship between
11.5
How do team charac-
teristics influence team
effectiveness?
Sources: M.A. Campion, G.J. Medsker, and A.C. Higgs, “Relations between Work Group Characteristics and Effective-
ness: Implications for Designing Effective Work Groups,” Personnel Psychology 46 (1993), pp. 823–49; M.A. Campion,
E.M. Papper, and G.J. Medsker, “Relations between Work Team Characteristics and Effectiveness: A Replication and
Extension,” Personnel Psychology 49 (1996), pp. 429–52; S.H. Courtright, G.R. Thurgood, G.L. Stewart, and A.J. Pierotti,
“Structural Interdependence in Teams: An Integrative Framework and Meta-Analysis,” Journal of Applied Psychology 100
(2015), pp. 1825-1846; and G.L. Stewart, “A Meta-Analytic Review of Relationships between Team Design Features and
Team Performance,” Journal of Management 32 (2006), pp. 29–54.
FIGURE 11-6 Effects of Task Interdependence on Performance and Commitment
Task interdependence has a moderate positive e�ect on Team Performance. However,
the correlation is higher in teams involved in more complex knowledge work rather than
less complex work.
Task interdependence has a weak relationship with Team Commitment. However, the
correlation is stronger for teams involved in more complex knowledge work than in
teams involved in less complex work.
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
Team
Performance
Team
Commitment
Task
Interdependence
Task
Interdependence
Final PDF to printer
359C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 359 10/30/17 08:32 AM
task interdependence and team performance is moderately positive.104 That is, task performance
tends to be higher in teams in which members depend on one another and have to coordinate
their activities rather than when members work more or less independently. It’s important to men-
tion that the relationship between task interdependence and team performance varies somewhat
depending on how team performance is measured. Additionally, the relationship tends to be sig-
nificantly stronger in teams that are responsible for completing complex knowledge work rather
than simple tasks. When work is more complex, interdependence is necessary because there’s a
need for members to interact and share resources and information. When work is simple, sharing
information and resources is less necessary because members can do the work by themselves.
In the lower portion of Figure 11-6, you can see that the relationship between task interdepen-
dence and team commitment is weaker.105 Teams with higher task interdependence have only a
slightly higher probability of including members who are committed to their team’s continued
existence. As with the relationship with team performance, task interdependence has a stronger
effect on viability for teams doing complex knowledge work. Apparently, sharing resources and
information in a context in which it’s unnecessary is dissatisfying to members and results in a
team with reduced prospects of continued existence.
A P P L I C AT I O N : T E A M C O M P E N S AT I O N
Although all team characteristics have implications for managerial practices, outcome interde-
pendence is particularly relevant for two reasons. First, outcome interdependence has obvious
connections to compensation practices in organizations,106 and most of us are interested in factors
that determine how we get paid. If you work for an organization with compensation that has high
outcome interdependence, a higher percentage of your pay will depend on how well your team
does. If you work for an organization with compensation that has low outcome interdependence,
a lower percentage of your pay will depend on how well your team does.
A second reason outcome interdependence is important to consider is that it presents manag-
ers with a tough dilemma. High outcome interdependence promotes higher levels of cooperation
because members understand that they share the same fate—if the team wins, everyone wins, and
if the team fails, everyone fails.107 At the same time, high outcome interdependence may result in
reduced motivation, especially among higher performing members. High performers may perceive
that they’re not paid in proportion to what they contributed to the team and that their teammates
are taking advantage of this inequity for their own benefit.108
One solution to this dilemma has been to design team reward structures with hybrid outcome
interdependence, which means that members receive rewards that are dependent on both their
team’s performance and how well they perform as individuals.109 In fact, the majority of organiza-
tions that use teams use some sort of hybrid outcome interdependence. But what percentage of
team members’ pay is typically based on team performance in business organizations? This is a
difficult question to answer, because as we discussed earlier in the chapter, there are so many dif-
ferent types of teams doing so many different types of tasks, and also because organizations vary
dramatically in their approaches to rewarding their employees. For example, the size of team-based
pay in the goods and service sectors averages around 10–12 percent of an employee’s base pay.110
In contrast, production workers at Nucor, the Crawfordsville, Indiana–based steel company, earn
team-based bonuses of 170 percent of their base pay, on average.111 It’s important to note that
hybrid outcome interdependence, in and of itself, may not always be that effective in promoting
team functioning and effectiveness. Research conducted at Xerox, for example, shows that service
teams with hybrid outcome interdependence are less effective than service teams with very high
or very low levels of outcome interdependence.112 Part of the problem with hybrid outcome inter-
dependence is that it can lead to uncertainty about which types of behaviors are being rewarded
and how pay ultimately is determined. To make hybrid interdependence work, organizations need
to ensure that the system makes sense to employees. At Nucor, most production workers know
within one-tenth of 1 percent what the team’s bonus is for the week, as well as which products will
be produced next and how these future operations will likely affect their bonuses.113
11.6
How can team compensa-
tion be used to manage
team effectiveness?
Final PDF to printer
360 C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 360 10/30/17 08:32 AM
K E Y T E R M S
• Team p. 338
• Work team p. 339
• Management team p. 339
• Parallel team p. 340
• Project team p. 341
• Action team p. 342
• Virtual team p. 343
• Forming p. 343
• Storming p. 343
• Norming p. 343
• Performing p. 344
• Adjourning p. 344
• Punctuated equilibrium p. 344
• Task interdependence p. 345
• Pooled interdependence p. 345
• Sequential interdependence p. 345
• Reciprocal interdependence p. 345
• Comprehensive interdependence p. 346
• Goal interdependence p. 348
• Outcome interdependence p. 348
• Team composition p. 349
• Role p. 350
• Leader–staff teams p. 351
• Team task roles p. 351
• Team-building roles p. 351
• Individualistic roles p. 352
One way to resolve the dilemma of outcome interdependence is to implement a level of team-
based pay that matches the level of task interdependence. Members tend to be more productive in
high task interdependence situations when there’s also high outcome interdependence. Similarly,
members prefer low task interdependent situations when there’s low outcome interdependence.114
To understand the power of aligning task and outcome interdependence, consider scenarios in
which there’s not a good match. For example, how would you react to a situation in which you
worked very closely with your teammates on a team project in one of your classes, and though your
professor said the team’s project was outstanding, she awarded an A to one of your team members,
a B to another, and a C to you? Similarly, consider how you would react to a situation in which you
scored enough points for an A on your final exam, but your professor averaged everyone’s grades
together and gave all students a C. Chances are you wouldn’t be happy with either scenario.
11.1 There are several different types of teams—work teams, management teams, action teams,
project teams, and parallel teams—but many teams in organizations have characteristics
that fit in multiple categories and differ from one another in other ways.
11.2 Teams can be interdependent in terms of the team task, goals, and outcomes. Each type of
interdependence has important implications for team functioning and effectiveness.
11.3 Team composition refers to the characteristics of the members who work in the team.
These characteristics include roles, ability, personality, and member diversity, as well as
the number of team members.
11.4 The effect of diversity on the team depends on time and whether the diversity is surface
level or deep level. The effects of surface-level diversity tend to diminish with time, whereas
the effects of deep-level diversity tend to increase over time.
11.5 Task interdependence has a moderate positive relationship with team performance and a
weak relationship with team commitment.
11.6 Outcome interdependence has important effects on teams, which can be managed with
compensation practices that take team performance into account.
TA K E AWAY S
Final PDF to printer
361C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 361 10/30/17 08:32 AM
11.1 In which types of teams have you worked? Were these teams consistent with the taxonomy
of team types discussed in this chapter, or were they a combination of types?
11.2 Think about your student teams. Which aspects of both models of team development apply
the most and least to teams in this context? Do you think these teams function best in an
additive, disjunctive, or conjunctive manner? What are the advantages and disadvantages
of each structure?
11.3 Think about a highly successful team with which you are familiar. What types of task, goal,
and outcome interdependence does this team have? Describe how changes in task, goal,
and outcome interdependence might have a negative impact on this team.
11.4 What type of roles do you normally take on in a team setting? Are there task or social roles
that you simply don’t perform well? If so, why do you think this is?
11.5 How would you describe your student team in terms of its diversity? In what ways would
there be advantages and disadvantages to increasing its diversity? How might you be able
to manage some of the disadvantages so that your team is able to capitalize on the poten-
tial advantages?
D I S C U S S I O N Q U E S T I O N S
• Disjunctive tasks p. 353
• Conjunctive tasks p. 353
• Additive tasks p. 353
• Team diversity p. 354
• Value in diversity problem-solving
approach p. 354
• Similarity-attraction approach p. 354
• Surface-level diversity p. 355
• Deep-level diversity p. 355
• Team viability p. 358
• Hybrid outcome interdependence p. 359
Teams are taken very seriously at Whole Foods. Not only are company employees referred to as
“team members,” but teams are given a great deal of freedom to make important decisions. For
example, teams help decide what items to order and sell, and how to price and promote them.
Although it might not seem all that unusual for a company to give teams the liberty to make deci-
sions so they can carry out their core functional responsibilities, Whole Foods goes much further
in providing autonomy to their teams. Perhaps there is no better example of this than how new
team members are hired at the company.
In most organizations, individuals seeking employment fill out an application form or submit
a résumé. Those with qualifications that are judged to match a job description are interviewed
by human resource personnel or a manager to make sure the applicant fits with the job and orga-
nization. At Whole Foods, the process is quite different and much more involved. Applicants
not only fill out an application and have one-on-one interviews with managers, but they also
have interviews with panels composed of recruiters, managers, and select team members. But
that’s not all. An applicant who makes it through this process is placed on a team for a 30-day
trial period, after which the team votes for whether or not to accept the applicant on their team.
Applicants who don’t get a two-thirds vote are out of that team. They may be placed on a new
team, where the trial process begins anew, or they leave the company.
This hiring process typically takes about 60 days and is applied at all levels of the organization,
“from cashiers on checkout teams to financial analysts in the home office.” Whole Foods believes
C A S E : W H O L E F O O D S
Final PDF to printer
362 C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 362 10/30/17 08:32 AM
EXERCISE: PAPER PLANE CORPORATION
The purpose of this exercise is to analyze the advantages and disadvantages of sequential versus
pooled interdependence on a team production project. This exercise uses groups, so your instruc-
tor will either assign you to a group or ask you to create your own group. The exercise has the
following steps.
11.1 Your professor will supply you with the materials you need to create your final product
(as many paper airplanes as you can fold to quality standards in three 5-minute rounds).
Instructions for folding the paper airplanes and judging their quality are provided below.
Before you start work on your airplanes, do the following:
a. As a group, select a team manager (who will supervise operations and get additional
resources as needed) and a team inspector (who will judge the quality of the work on
airplanes).
b. Familiarize yourself with how to make a paper airplane by folding one according to the
instructions.
c. Be sure you are in a space where all of the team members can work comfortably.
d. To the extent possible, move away from other groups.
e. Familiarize yourself with the information about the Paper Plane Corporation.
11.2 Your group is the complete workforce for the Paper Plane Corporation. Established in
1943, Paper Plane has led the market in paper plane production. Presently under new man-
agement, the company is contracting to make aircraft for the U.S. Air Force. You must
determine the most efficient method for producing these aircraft. You must make your
contract with the Air Force under the following conditions:
a. The Air Force will pay $200,000 per airplane.
b. The aircraft must pass a strict inspection by a quality control manager.
c. A penalty of $250,000 per airplane will be subtracted for each failure to meet the pro-
duction requirements.
d. Labor and other overhead will be computed at $3,000,000.
e. Cost of materials will be $30,000 per bid plane. If you bid for 10 but make only 8, you
must pay the cost of materials for those you failed to make or those that did not pass
inspection.
that hiring decisions should be made by the team members, in part, because they’re the ones who
are most directly affected by the choices that are made. A new hire who ends up hurting a team’s
performance will reduce bonuses paid to team members, whereas the opposite would be true of
a hire that ends up promoting a team’s performance. Whole Foods also believes that the team
members themselves are the best judges of who might fit within their team. Finally, involving team
members in the hiring process promotes a sense of ownership for the decision, and following from
this, team members may be more inclined to help a new hire who is struggling to catch on.
11.1 What label would best describe the type of team that Whole Foods uses in its stores?
Explain.
11.2 Describe the advantages and disadvantages of Whole Foods’ hiring process with respect to
managing team composition.
11.3 What steps could Whole Foods take to mitigate potential disadvantages of their hiring
process?
Sources: D. Burkus, “Why Whole Foods Builds Its Entire Business on Teams,” Forbes, June 8, 2016, https://www.forbes.com/
sites/davidburkus/2016/06/08/why-whole-foods-build-their-entire-business-on-teams/#1553674b3fa1; C. Fishman, “Whole Foods
Is All Teams,” Fastcompany, April 30, 1996, https://www.fastcompany.com/26671/whole-foods-all-teams; Whole Foods, “Whole
Foods Market History,” http://www.wholefoodsmarket.com/company-info/whole-foods-market-history(accessed 3, 31, 2017).
Final PDF to printer
363C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 363 10/30/17 08:32 AM
11.3 In the first round of the airplane manufacturing process, the Air Force has asked you to
focus on individuality. Each Paper Plane worker should manufacture his or her own planes
from start to finish. When each plane is finished, it should be put in a central location for
quality inspection. When time is called, you will record your team profit on the Summary
Sheet.
11.4 In the second round of manufacturing, the Air Force has asked you to give each worker a
specific job. In other words, the manufacturing process will take place in an assembly-line
fashion. When planes come off the assembly line, they will be given directly to the quality
control manager for inspection. When time is called, you will record your team profit on
the Summary Sheet.
11.5 In the final round of manufacturing, the Air Force has asked your team to devise a manu-
facturing process that will maximize both efficiency and effectiveness. You may do what-
ever you like in terms of creating paper airplanes. You will have the same amount of time
that you did in the two previous rounds. When time is called, you will record your team
profit on the Summary Sheet.
11.6 Class discussion (whether in groups or as a class) should center on the following questions:
a. Did pooled interdependence (Round 1) or sequential interdependence (Round 2) work
better for your group in terms of the number of planes made correctly? Why do you
think you got the result you did?
b. How did you change your work structure in Round 3? Did the changes you imple-
mented help you achieve better productivity? Why or why not?
c. From your perspective, what are the advantages and disadvantages of pooled and/or
sequential interdependence?
STEP 1: Take a sheet of
paper and fold it in half,
then open it back up.
STEP 2: Fold upper
corners to the middle.
STEP 3: Fold the corners
to the middle again.
STEP 4: Fold in half.
STEP 5: Fold both
wings down.
STEP 6: Fold tail fins up.
Completed Aircraft
Final PDF to printer
364 C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 364 10/30/17 08:32 AM
11.1 Ilgen, D.R.; D.A.
Major; J.R. Hol-
lenbeck; and D.J.
Sego. “Team Research
in the 1990s.” In
Leadership Theory and
Research: Perspectives
and Directions, ed.
M.M. Chemers and
R. Ayman. New York:
Academic Press, 1993,
pp. 245–70.
11.2 Devine, D.J.; L.D.
Clayton; J.L. Phil-
ips; B.B. Dunford;
and S.B. Melner.
“Teams in Organiza-
tions: Prevalence,
Characteristics, and
Effectiveness.” Small
Group Research 30
(1999), pp. 678–711;
Gordan, J. “Work
Teams: How Far Have
They Come?” Training
29 (1992), pp. 59–65;
and Lawler, E.E.,
III; S.A. Mohrman;
and G.E. Ledford Jr.
Creating High Perfor-
mance Organizations:
Practices and Results of
Employee Involvement
and Total Quality Man-
agement in Fortune
1000 Companies. San
Francisco: Jossey-
Bass, 1995.
11.3 Stewart, G.L.; C.C.
Manz; and H.P. Sims
Jr. Team Work and
Group Dynamics. New
York: Wiley, 1999.
11.4 Ibid.
11.5 Boning, B; C. Ichnio-
wski; and K. Shaw.
“Opportunity Counts:
Teams and the Effec-
tiveness of Production
Incentives.” Journal of
Labor Economics 25
(2007), pp. 613–50.
11.6 Mathieu, J.E.; J.R.
Hollenbeck; D. van
Knippenberg; and
D.R. Ilgen. “A Cen-
tury of Work Teams in
the Journal of Applied
Psychology.” Journal of
Applied Psychology 102
(2017), pp. 452–67.
11.7 Cohen, S.G., and
D.E. Bailey. “What
Makes Teams Work:
Group Effectiveness
Research from the
Shop Floor to the
Executive Suite.” Jour-
nal of Management 23
(1997), pp. 239–90.
11.8 Liker, J.K. The Toyota
Way. New York:
McGraw-Hill, 2004.
E N D N OT E S
Round 1
Bid: _______ Aircraft @ $200,000 per aircraft = _______
Results: _____ Aircraft @ $200,000 per aircraft = _______
Subtract: $3,000,000 overhead + _____ × $30,000 cost of raw materials + _____ × $250,000
penalty for not completing a bid plane = _______
Profit: _________
Round 2
Bid: _______ Aircraft @ $200,000 per aircraft = _______
Results: _______ Aircraft @ $200,000 per aircraft = _______
Subtract: $3,000,000 overhead + _____ × $30,000 cost of raw materials + _____ × $250,000
penalty for not completing a bid plane = _____
Profit: _________
Round 3
Bid: _______ Aircraft @ $200,000 per aircraft = _______
Results: ______ Aircraft @ $200,000 per aircraft = _______
Subtract: $3,000,000 overhead + _____ × $30,000 cost of raw materials + _____ × $250,000
penalty for not completing a bid plane = _____
Profit: _________
Source: J.M. Ivancevich, J.M, R. Konopaske, and M. Matteson. Organizational Behavior and Management, 7th ed. New
York: McGraw-Hill/Irwin, 2005. Original exercise by Louis Potheni in Luthans, F. Organizational Behavior. New York:
McGraw-Hill, 1985, p. 555.
Final PDF to printer
365C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 365 10/30/17 08:32 AM
11.9 Cohen and Bailey,
“What Makes Teams
Work.”
11.10 Ibid.
11.11 Sundstrom, E.; M.
McIntyre; T. Halfhill;
and H. Richards.
“Work Groups:
From the Hawthorne
Studies to Work
Teams of the 1990s
and Beyond.” Group
Dynamics, Theory,
Research, and Practice
4 (2000), pp. 44–67.
11.12 Schlender, B. “The
Man Who Built
Pixar’s Incredible
Innovation Machine.”
Fortune, November
15, 2004, p. 206.
ProQuest database
(accessed May 28,
2007).
11.13 Hollenbeck, J.R.; B.
Beersma; and M.E.
Schouten. “Beyond
Team Types and
Taxonomies: A
Dimensional Scaling
Conceptualization for
Team Description.”
Academy of Manage-
ment Review 37
(2012), pp. 82–106.
11.14 Hackman, J.R. “The
Design of Work
Teams.” In Handbook
of Organizational
Behavior, ed. J.
Lorsch, Englewood
Cliffs, NJ: Prentice
Hall, 1987, pp.
315–42.
11.15 Cohen, S.G., and
G.E. Ledford. “The
Effectiveness of Self-
Managing Teams: A
Quasi-Experiment.”
Human Relations 47
(1994), pp. 13–34;
Cordery, J.L.; W.S.
Mueller; and L.M.
Smith. “Attitudinal
and Behavioral Effects
of Autonomous
Group Working: A
Longitudinal Field
Study.” Academy of
Management Journal
34 (1991), pp. 464–76;
and Wall, T.D.; N.J.
Kemp; P.R. Jackson;
and C.W. Clegg.
“Outcomes of Autono-
mous Work Groups:
A Long-Term Field
Experiment.” Academy
of Management Jour-
nal 29 (1986),
pp. 280–304.
11.16 Hass, M.R. “The
Double-Edged Swords
of Autonomy and
External Knowledge:
Analyzing Team Effec-
tiveness in a Multina-
tional Organization.”
Academy of Manage-
ment Journal 53
(2010), pp. 989–1008.
11.17 Gilson, L.L.; M.T.
Maynard; N.C Jones
Young; M. Vartiainen;
and M. Hokonen.
“Virtual Teams
Research: 10 Years,
10 Themes, and 10
Opportunities.” Jour-
nal of Management 41
(2015), pp. 1313–37.
11.18 Fisher, A. “How to
Build a (Strong)
Virtual Team.”
CNNMoney.com,
December 10, 2009,
http://money.cnn.
com/2009/11/19/
news/companies/
?ibm_virtual_
manager.fortune/
index.htm.
11.19 Ubell, R. “Virtual
Team Learning.”
Training and
Development, August
2010, pp. 53–57.
11.20 Fisher, “How to Build
a (Strong) Virtual
Team.”
11.21 Duckworth, H. “How
TRW Automotive
Helps Global Virtual
Teams Perform at the
Top of Their Game.”
Development and Learn-
ing in Organizations 23
(2008), pp. 6–16.
11.22 Schiff, D. “Global
Teams Rock around
the Clock.” Electronic
Engineering Times
1435 (August 7,
2006), pp. 12, 20.
11.23 Godinez, V. “Sunshine
24/7: As EDS’ Work
Stops in One Time
Zone, It Picks Up in
Another.” Knight Rid-
der Tribune Business
News, January 2, 2007,
ProQuest database
(accessed February
12, 2007); Schiff,
“Global Teams Rock”;
and Treinen, J.J., and
S.L. Miller-Frost. “Fol-
lowing the Sun: Case
Studies in Global Soft-
ware Development.”
IBM Systems Journal
45 (2006),
pp. 773–83.
11.24 Tuckman, B.W.
“Developmental
Sequence in Small
Groups.” Psychological
Bulletin 63 (1965),
pp. 384–99; and
Tuckman, B.W.,
and M.A.C. Jensen.
“Stages of Small-
Group Development
Revisited.” Group and
Organization Manage-
ment 2 (1977),
pp. 419–27.
Final PDF to printer
366 C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 366 10/30/17 08:32 AM
11.25 Guzzo, R.A., and
G.P. Shea. “Group
Performance and
Intergroup Relations
in Organizations.”
Handbook of Industrial
and Organizational
Psychology, Vol. 3, ed.
M.D. Dunnette and
L.M. Hough, Palo
Alto, CA: Consulting
Psychologists Press,
1992, pp. 269–313.
11.26 Gersick, C.J.G.
“Time and Transi-
tion in Work Teams:
Toward a New Model
of Group Develop-
ment.” Academy of
Management Journal
33 (1988), pp. 9–41;
and Gersick, C.J.G.
“Marking Time: Pre-
dictable Transitions in
Task Groups.” Acad-
emy of Management
Journal 32 (1989),
pp. 274–309.
11.27 Thompson, J.D. Orga-
nizations in Action.
New York: McGraw-
Hill, 1967; and Van
de Ven, A.H.; A.L.
Delbeccq; and R. Koe-
nig. “Determinants of
Coordination Modes
within Organizations.”
American Sociological
Review 41 (1976),
pp. 322–38.
11.28 Ibid.
11.29 Thompson, Organiza-
tions in Action.
11.30 Ibid.
11.31 Ibid.
11.32 Van de Ven et al.,
“Determinants of
Coordination Modes.”
11.33 Kelley, T. The Art of
Innovation. New York:
Doubleday, 2001.
11.34 Courtright, S.H.;
G.R. Thurgood; G.L.
Stewart; and A.J.
Pierotti. “Structural
Interdependence in
Teams: An Integrative
Framework and Meta-
Analysis.” Journal of
Applied Psychology 100
(2015), pp. 1825–46;
and Saavedra, R.; P.C.
Earley; and L. Van
Dyne. “Complex Inter-
dependence in Task
Performing Groups.”
Journal of Applied
Psychology 78 (1993),
pp. 61–72.
11.35 Deutsch, M. The
Resolution of Conflict.
New Haven, CT: Yale
University Press, 1973;
and Wong, A.; D.
Tjosvold; and Yu. Zi-
you “Organizational
Partnerships in China:
Self-Interest, Goal
Interdependence,
and Opportunism.”
Journal of Applied
Psychology 90 (2005),
pp. 782–91.
11.36 MacMillan, P.S. The
Performance Factor:
Unlocking the Secrets
of Teamwork. Nash-
ville, TN: Broadman
& Holman, 2001.
11.37 Pearsall, M.J., and V.
Venkataramani. “Over-
coming Asymmetric
Goals in Teams: The
Interactive Role of
Team Learning Orien-
tation and Team Iden-
tification.” Journal of
Applied Psychology 100
(2015), pp. 735–48.
11.38 Ibid.
11.39 MacMillan, P.S. The
Performance Factor:
Unlocking the Secrets
of Teamwork. Nash-
ville, TN: Broadman &
Holman, 2001.
11.40 Mathieu, J.E., and
T.L. Rapp. “The Foun-
dation for Successful
Team Performance
Trajectories: The
Roles of Team Char-
ters and Performance
Strategies.” Journal of
Applied Psychology 94
(2009), pp. 90–103.
11.41 Shea, G.P., and R.A.
Guzzo. “Groups as
Human Resources.” In
Research in Personnel
and Human Resources
Management, Vol. 5,
ed. K.M. Rowland and
G.R. Ferris. Green-
wich CT: JAI Press,
1987, pp. 323–56.
11.42 De Dreu, C.K.W.
“Outcome Inter-
dependence, Task
Reflexivity, and Team
Effectiveness: Moti-
vated Information Pro-
cessing Perspective.”
Journal of Applied
Psychology 92 (2007),
pp. 628–38.
11.43 Biddle, B.J. Role
Theory: Expectations,
Identities, and Behavior.
New York: Academic
Press, 1979; and Katz,
D., and R.L. Kahn. The
Social Psychology of
Organizations, 2nd ed.
New York: Wiley, 1978.
11.44 Humphrey, S.E.; F.P.
Morgeson; and M.J.
Mannor. “Developing
a Theory of the Stra-
tegic Core of Teams:
A Role Composition
Model of Team Per-
formance.” Journal of
Applied Psychology 94
(2009), pp. 48–61.
Final PDF to printer
367C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 367 10/30/17 08:32 AM
11.45 Brehmer, B., and R.
Hagafors. “Use of
Experts in Complex
Decision Making:
A Paradigm for the
Study of Staff
Work.” Organiza-
tional Behavior and
Human Decision
Processes 38 (1986),
pp. 181–95.
11.46 Benne, K., and P.
Sheats. “Functional
Roles of Group Mem-
bers.” Journal of Social
Issues 4 (1948), pp.
41–49.
11.47 Li, N; H.H. Zhao;
S.L. Walter; X.A.
Zhang; and J. Yu.
“Achieving More with
Less: Extra Milers’
Behavioral Influences
in Teams.” Journal of
Applied Psychology 100
(2015), pp. 1025–39.
11.48 Lehmann-Willenbrock,
N., and J. A. Allen.
“How Fun Are Your
Meetings? Investigat-
ing the Relationship
between Humor
Patterns in Team
Interactions and Team
Performance.” Journal
of Applied Psychology
99 (2014),
pp. 1278–87.
11.49 Cole, M.S; F. Walter;
and H. Bruch. “Affec-
tive Mechanisms
Linking Dysfunc-
tional Behavior to
Performance in Work
Teams: A Moderated
Mediation Study.”
Journal of Applied
Psychology 95 (2008),
pp. 945–58.
11.50 Spencer, L. “Condi-
tioning Has Become
an Important Tool:
Let’s Get Physical.”
Stock Car Racing
(n.d.), http://www
.stockcarracing.com/
howto/stock_car_pit_
crew_-conditioning/.
11.51 Devine, D.J., and J.L.
Philips. “Do Smarter
Teams Do Better:
A Meta-Analysis of
Cognitive Ability and
Team Performance.”
Small Group Research
32 (2001), pp.
507–32; and Stewart,
G.L. “A Meta-Analytic
Review of Relation-
ships between Team
Design Features and
Team Performance.”
Journal of Manage-
ment 32 (2006), pp.
29–54.
11.52 LePine, J.A.; J.R.
Hollenbeck; D.R.
Ilgen; and J. Hedlund.
“Effects of Individual
Differences on the
Performance of
Hierarchical Decision-
Making Teams: Much
More than g.” Journal
of Applied Psychology
82 (1997), pp. 803–11.
11.53 LePine, J.A. “Team
Adaptation and Post-
change Performance:
Effects of Team Com-
position in Terms of
Members’ Cognitive
Ability and Personal-
ity.” Journal of Applied
Psychology 88 (2003),
pp. 27–39; and
LePine, J.A. “Adapta-
tion of Teams in
Response to Unfore-
seen Change: Effects
of Goal Difficulty and
Team Composition
in Terms of Cognitive
Ability and Goal Ori-
entation.” Journal of
Applied Psychology 90
(2005), pp. 1153–67.
11.54 Steiner, I.D. Group
Process and Productiv-
ity. New York: Aca-
demic Press, 1972.
11.55 Stewart, G.L.; I.S.
Fulmer; and M.R. Bar-
rick. “An Exploration
of Member Roles as
a Multilevel Link-
ing Mechanism for
Individual Traits and
Team Outcomes.” Per-
sonnel Psychology 58
(2005), pp. 343–65.
11.56 Gonzales-Mule, E.;
D.S. DeGeest; B.W.
McCormick; J.Y.
Seong; and K.G.
Brown. “Can We Get
Some Cooperation
Around Here? The
Mediating Role of
Group Norms on the
Relationship between
Team Personality and
Individual Helping
Behaviors.” Journal of
Applied Psychology 99
(2014), pp. 988–99.
11.57 Bell, S.T. “Deep Level
Composition Vari-
ables as Predictors of
Team Performance:
A Meta-Analysis.”
Journal of Applied Psy-
chology 92 (2007), pp.
395–415; and Peeters,
M.A.G.; H.F.J.M.
Tuijl; C.G. van Rutte;
and I.M.M.J. Reymen.
“Personality and
Team Performance:
A Meta-Analysis.”
European Journal of
Personality 20 (2006),
pp. 377–96.
11.58 Ibid.
11.59 Comer, D.R. “A
Model of Social
Loafing in Real Work
Final PDF to printer
368 C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 368 10/30/17 08:32 AM
Groups.” Human Rela-
tions 48 (1995), pp.
647–67; and Wagner,
J.A., III. “Studies of
Individualism–
Collectivism: Effects
on Cooperation in
Groups.” Academy
of Management
Journal 38 (1995),
pp. 152–72.
11.60 LePine, J.A., and L.
Van Dyne. “Voice and
Cooperative Behavior
as Contrasting Forms
of Contextual Perfor-
mance: Evidence of
Differential Relation-
ships with Personality
Characteristics and
Cognitive Ability.”
Journal of Applied
Psychology 86 (2001),
pp. 326–36.
11.61 McGrath, J.E. “The
Influence of Positive
Interpersonal Rela-
tions on Adjustment
and Interpersonal
Relations in Rifle
Teams.” Journal of
Abnormal and Social
Psychology 65 (1962),
pp. 365–75.
11.62 Bell, “Deep Level
Composition Vari-
ables”; and Peeters et
al., “Personality and
Team Performance.”
11.63 Barrick, M.R.; G.L.
Stewart; M.J. Neubert;
and M.K. Mount.
“Relating Member
Ability and Personal-
ity to Work-Team
Processes and Team
Effectiveness.” Journal
of Applied Psychol-
ogy 83 (1998), pp.
377–91; LePine et al.,
“Effects of Individual
Differences”; and
Neuman, G.A., and
J. Wright. “Team
Effectiveness: Beyond
Skills and Cognitive
Ability.” Journal of
Applied Psychology 84
(1999), pp. 376–89.
11.64 LePine, J.A., and
L. Van Dyne. “Peer
Responses to Low
Performers: An
Attributional Model
of Helping in the
Context of Work
Groups.” Academy of
Management Review
26 (2001), pp. 67–84.
11.65 Bell, “Deep Level
Composition Vari-
ables”; and Peeters et
al., “Personality and
Team Performance.”
11.66 Barrick, M.R., and
M.K. Mount. “The
Big Five Personality
Dimensions and Job
Performance: A Meta-
Analysis.” Personnel
Psychology 44 (1991),
pp. 1–26.
11.67 Barrick et al., “Relat-
ing Member Ability
and Personality.”
11.68 Barry, B., and G.L.
Stewart. “Composi-
tion, Process, and
Performance in Self-
Managed Groups: The
Role of Personality.”
Journal of Applied
Psychology 82 (1997),
pp. 62–78.
11.69 Williams, K., and C.
O’Reilly. “The Com-
plexity of Diversity:
A Review of Forty
Years of Research.”
In Research in Organi-
zational Behavior, Vol.
21, ed. B. Staw and R.
Sutton. Greenwich,
CT: JAI Press, 1998,
pp. 77–140.
11.70 Harrison, D.A., and
K.J. Klein. “What’s
the Difference? Diver-
sity Constructs as
Separation, Variety,
or Disparity in Orga-
nizations.” Academy
of Management Review
32 (2007), pp. 1199–
1228; Mohammed,
S., and S. Nadkarni.
“Are We All on the
Same Temporal Page?
The Moderating
Effects of Temporal
Team Cognition on
the Polychronicity
Diversity-Team
Performance Rela-
tionship.” Journal of
Applied Psychology 99
(2014), pp. 404–22;
and Roberson, Q.;
A.M. Ryan; and B.R.
Ragins. “The Evolu-
tion and Future of
Diversity at Work.”
Journal of Applied Psy-
chology 103 (2017),
pp. 483–99.
11.71 Joshi, A., and H. Roh.
“The Role of Context
in Work Team Diver-
sity Research: A Meta-
Analytic Review.”
Academy of Manage-
ment Journal 52
(2009), pp. 599–627.
11.72 Aparna, J., and A.P.
Knight. “Who Defers
to Whom and Why?
Dual Pathways Link-
ing Demographic Dif-
ferences and Dyadic
Differences to Team
Effectiveness.” Acad-
emy of Management
Final PDF to printer
369C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 369 10/30/17 08:32 AM
Journal 58 (2015),
pp. 59–84; and Kim,
E.; D.P. Bhave; and
T.M. Glomb. “Emo-
tion Regulation in
Workgroups: The
Roles of Demographic
Diversity and Rela-
tional Work Context.”
Personnel Psychology
66 (2013), pp. 613–44.
11.73 Cox, T.; S. Lobel; and
P. McLeod. “Effects
of Ethnic Group Cul-
tural Differences on
Cooperative and Com-
petitive Behavior on a
Group Task.” Academy
of Management
Journal 34 (1991), pp.
827–47; and Mannix,
E., and M.A. Neal.
“What Differences
Make a Difference?
The Promise and Real-
ity of Diverse Teams
in Organizations.”
Psychological Science
in the Public Interest 6
(2005), pp. 31–55.
11.74 Page, S.E. “Mak-
ing the Difference:
Applying the Logic of
Diversity.” Academy of
Management Perspec-
tives 21 (2007), pp.
6–20.
11.75 van Knippenberg, D.;
C. K.W. DeDreu; and
A.C. Homan. “Work
Group Diversity and
Group Performance:
An Integrative
Model and Research
Agenda.” Journal of
Applied Psychology 89
(2004), pp. 1008–22.
11.76 Ibid.
11.77 Kearney, E.; D.
Gebert; and S.C.
Voelpel. “When
and How Diversity
Benefits Teams: The
Importance of Team
Members’ Need for
Cognition.” Academy
of Management
Journal 52 (2009), pp.
581–98.
11.78 Canella, A.A., Jr.; J.H.
Park; and H.U. Lee.
“Top Management
Team Functional
Background Diversity
and Firm Perfor-
mance: Examining the
Roles of Team Mem-
ber Colocation and
Environmental Uncer-
tainty.” Academy of
Management Journal
51 (2008), pp. 768–
84; Gruenfeld, D.H.;
E.A. Mannix; K.Y.
Williams; and M.A.
Neale. “Group Com-
position and Decision
Making: How Member
Familiarity and Infor-
mation Distribution
Affect Processes and
Performance.” Orga-
nizational Behavior
and Human Decision
Processes 67 (1996),
pp. 1–15; Hoffman,
L. “Homogeneity and
Member Personal-
ity and Its Effect
on Group Problem
Solving.” Journal of
Abnormal and Social
Psychology 58 (1959),
pp. 27–32; Hoffman,
L., and N. Maier.
“Quality and Accep-
tance of Problem
Solutions by Members
of Homogeneous
and Heterogeneous
Groups.” Journal of
Abnormal and Social
Psychology 62 (1961),
pp. 401–7; Nemeth,
C.J. “Differential
Contributions of
Majority and Minority
Influence.” Psychologi-
cal Review 93 (1986),
pp. 22–32; Stasster,
G.; D. Steward; and
G. Wittenbaum.
“Expert Roles and
Information Exchange
during Discussion:
The Importance of
Knowing Who Knows
What.” Journal of
Experimental Social
Psychology 57 (1995),
pp. 244–65; Triandis,
H.; E. Hall; and R.
Ewen. “Member Het-
erogeneity and Dyadic
Creativity.” Human
Relations 18 (1965),
pp. 33–55; and Wat-
son, W.; K. Kuman;
and I. Michaelsen.
“Cultural Diversity’s
Impact on Interaction
Process and Perfor-
mance: Comparing
Homogeneous and
Diverse Task Groups.”
Academy of Manage-
ment Journal 36
(1993), pp. 590–602.
11.79 Byrne, D. The Attrac-
tion Paradigm. New
York: Academic Press,
1971; and Newcomb,
T.M. The Acquaintance
Process. New York:
Holt, Rinehart and
Winston, 1961.
11.80 Byrne, D.; G. Clore;
and P. Worchel. “The
Effect of Economic
Similarity-Dissimilarity
as Determinants of
Attraction.” Journal of
Personality and Social
Psychology 4 (1996),
pp. 220–24; Lincoln,
J., and J. Miller.
Final PDF to printer
370 C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 370 10/30/17 08:32 AM
“Work and Friendship
Ties in Organiza-
tions: A Comparative
Analysis of Relational
Networks.” Administra-
tive Science Quarterly
24 (1979), pp.
181–99; Triandis, H.
“Cognitive Similarity
and Interpersonal
Communication in
Industry.” Journal of
Applied Psychology 43
(1959), pp. 321–26;
and Triandis, H.
“Cognitive Similarity
and Communication
in a Dyad.” Human
Relations 13 (1960),
pp. 279–87.
11.81 Jackson, S.E.; K.E.
May; and K. Whitney.
“Understanding the
Dynamics of Diversity
in Decision-Making
Teams.” In Team
Decision-Making Effec-
tiveness in Organiza-
tions, ed. R.A. Guzzo
and E. Salas. San
Francisco: Jossey-Bass,
1995, pp. 204–61; and
Milliken, F.J., and L.L.
Martins. “Searching
for Common Threads:
Understanding the
Multiple Effects of
Diversity in Organiza-
tional Groups.” Acad-
emy of Management
Review 21 (1996),
pp. 402–33.
11.82 Harrison, D.A.; K.H.
Price; and M.P. Bell.
“Beyond Relational
Demography: Time
and the Effects of
Surface-and Deep-
Level Diversity
on Work Group
Cohesion.” Academy
of Management
Journal 41 (1998),
pp. 96–107; and
Harrison, D.A.; K.H.
Price; J.H. Gavin; and
A.T. Florey. “Time,
Teams, and Task Per-
formance: Changing
Effects of Surface- and
Deep-Level Diversity
on Group Function-
ing.” Academy of Man-
agement Journal 45
(2002), pp. 1029–45.
11.83 Ibid.
11.84 Lau, D., and J.K.
Murnighan. “Demo-
graphic Diversity and
Faultlines: The Com-
positional Dynamics
of Organizational
Groups.” Academy of
Management Review 23
(1998), pp. 325–40;
and Lau, D., and J.K.
Murnighan. “Interac-
tions with Groups
and Subgroups: The
Effects of Demo-
graphic Faultlines.”
Academy of Manage-
ment Journal 48
(2005), pp. 645–59.
11.85 Tuggle, C.S.; J.
Schnatterly; and R.A.
Johnson. “Attention
Patterns in the Board-
room: How Board
Composition and Pro-
cess Affect Discussion
of Entrepreneurial
Issues.” Academy of
Management Journal
53 (2010), pp. 550–71.
11.86 Carton, A.M., and
J.N. Cummings. “The
Impact of Subgroup
Type and Subgroup
Configurational Prop-
erties on Work Team
Performance.” Journal
of Applied Psychology
98 (2013), pp. 732–
58; and Homan, A.C.;
D. van Knippenberg;
G.A. Van Kleef; and
C.K. W. De Dreu.
“Bridging Faultlines
by Valuing Diversity:
Diversity Beliefs,
Information Elabora-
tion, and Performance
in Diverse Work
Groups.” Journal of
Applied Psychology 92
(2007), pp. 1189–99.
11.87 Homan, A.C.; J.R.
Hollenbeck; S.E.
Humphrey; D. van
Knippenberg; D.R.
Ilgen; and G.A.
van Kleef. “Facing
Differences with an
Open Mind: Open-
ness to Experience,
Salience of Intragroup
Differences, and Per-
formance of Diverse
Work Groups.” Acad-
emy of Management
Journal 51 (2008),
pp. 1204–22; and
Kearney, E., and D.
Gebert. “Managing
Diversity and Enhanc-
ing Team Outcomes:
The Promise of
Transformational
Leadership.” Journal
of Applied Psychology
94 (2009), pp. 77–89.
11.88 Ibid.
11.89 Ibid.
11.90 Mohammed, S., and
S. Nadkarni. “Tempo-
ral Diversity and Team
Performance: The
Moderating Role of
Team Temporal Lead-
ership.” Academy of
Management Journal
54 (2011),
pp. 489–508.
Final PDF to printer
371C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 371 10/30/17 08:32 AM
11.91 Pieterse, A.N.; D.
van Knippenberg;
and W.P. van Ginkel.
“Diversity in Goal
Orientation, Team
Reflexivity, and Team
Performance.” Orga-
nizational Behavior
and Human Decision
Processes 114 (2011),
pp. 153–64.
11.92 Hoever, I.J.; D. van
Knippenberg; W.P.
van Ginkel; and H.G.
Barkema. “Fostering
Team Creativity:
Perspective Taking
as Key to Unlocking
Diversity’s Potential.”
Journal of Applied
Psychology 97 (2012),
pp. 982–96.
11.93 Klein, K.J.; A.P.
Knight; J.C. Ziegert;
B.C. Lim; and J.L.
Salz. “When Team
Members’ Values Dif-
fer: The Moderating
Role of Team Leader-
ship.” Organizational
Behavior and Human
Decision Processes 114
(2011), pp. 25–36.
11.94 Ibid.
11.95 Bell, “Deep-Level
Composition
Variables.”
11.96 Humphrey, S.E.;
J.R. Hollenbeck;
C.J. Meyer; and
D.R. Ilgen. “Trait
Configurations in
Self-Managed Teams:
A Conceptual Exami-
nation of Seeding for
Maximizing and Mini-
mizing Trait Variance
in Teams.” Journal of
Applied Psychology 92
(2007), pp. 885–92.
11.97 Stewart, “A Meta-
Analytic Review.”
11.98 Kozlowski, S.W.J.,
and B.S. Bell. “Work
Groups and Teams
in Organization.”
In Comprehensive
Handbook of Psy-
chology: Industrial
and Organizational
Psychology, Vol. 12,
ed. W.C. Borman,
D.R. Ilgen, and R.J.
Klimoski. New York:
Wiley, 2003,
pp. 333–75.
11.99 Gooding, R.Z., and
J.A. Wagner III.
“A Meta-Analytic
Review of the Rela-
tionship between
Size and Perfor-
mance: The Produc-
tivity and Efficiency
of Organizations
and Their Subunits.”
Administrative
Science Quarterly
30 (1985), pp.
462–81; and
Markham, S.E.;
F. Dansereau; and
J.A. Alutto. “Group
Size and Absentee-
ism Rates: A
Longitudinal
Analysis.” Academy
of Management
Journal 25 (1982),
pp. 921–27.
11.100 Hackman, J.R.,
and N.J. Vidmar.
“Effects of Size
and Task Type on
Group Performance
and Member Reac-
tions.” Sociometry 33
(1970), pp. 37–54.
11.101 Source: Yank,
J.L. “The Power
of Number 4.6.”
Fortune 153, no. 11
(June 12, 2006),
p. 122.
11.102 Sundstrom, E.; K.P.
De Meuse; and
D. Futrell. “Work
Teams: Applications
and Effectiveness.”
American Psycholo-
gist 45 (1990),
pp. 120–33.
11.103 Stewart et al., Team
Work and Group
Dynamics.
11.104 Courtright et al.,
“Structural Interde-
pendence in Teams”;
Stewart, “A Meta-
Analytic Review.”
11.105 Campion, M.A.;
G.J. Medsker; and
A.C. Higgs. “Rela-
tions between Work
Group Characteris-
tics and Effective-
ness: Implications
for Designing Effec-
tive Work Groups.”
Personnel Psychology
46 (1993), pp. 823–
49; Campion, M.A.;
E.M. Papper; and
G.J. Medsker. “Rela-
tions between Work
Team Characteristics
and Effectiveness:
A Replication and
Extension.” Person-
nel Psychology 49
(1996), pp. 429–52;
and Courtright
et al., “Structural
Interdependence
in Teams.”
11.106 DeMatteo, J.S.; L.T.
Eby; and E. Sund-
strom. “Team-Based
Rewards: Current
Empirical Evidence
and Directions for
Final PDF to printer
372 C H A P T E R 1 1 Teams: Characteristics and Diversity
coL27660_ch11_335-373.indd 372 10/30/17 08:32 AM
Future Research.”
Research in Organi-
zational Behavior 20
(1998), pp. 141–83.
11.107 Deutsch, M.A. “A
Theory of Coop-
eration and Com-
petition.” Human
Relations 2 (1949),
pp. 199–231.
11.108 Williams, K.; S.G.
Harkins; and B.
Latane. “Identifiabil-
ity as a Deterrent to
Social Loafing: Two
Cheering Experi-
ments.” Journal of
Personality and Social
Psychology 40 (1981),
pp. 303–11.
11.109 Lawler, E.E. Strategic
Pay: Aligning Orga-
nizational Strategies
and Pay Systems. San
Francisco: Jossey-
Bass, 1990.
11.110 O’Dell, C. People,
Performance, Pay.
American Productiv-
ity Institute, 1987,
cited in DeMatteo
et al., “Team-Based
Rewards.”
11.111 Bolch, M. “Reward-
ing the Team: Make
Sure Team-Oriented
Compensation Plans
Are Designed Care-
fully.” HR Magazine,
2007, pp. 91–95.
11.112 Wageman, R.
“Interdependence
and Group Effective-
ness.” Administrative
Science Quarterly 40
(1995), pp. 145–80.
11.113 Bolch, “Rewarding
the Team.”
11.114 Johnson, D.W.; G.
Maruyama; R. John-
son; D. Nelson; and
L. Skon. “Effects of
Cooperative, Compet-
itive, and Individual-
istic Goal Structures
on Achievement:
A Meta-Analysis.”
Psychological Bul-
letin 89 (1981), pp.
47–62; Miller, L.K.,
and R.L. Hamblin.
“Interdependence,
Differential Reward-
ing and Productivity.”
American Sociological
Review 28 (1963),
pp. 768–78; and
Rosenbaum, M.E.
“Cooperation and
Competition.” In
Psychology of Group
Influence, ed. P.B.
Paulus. Hillsdale, NJ:
Erlbaum, 1980.
Final PDF to printer
coL27660_ch11_335-373.indd 373 10/30/17 08:32 AM
Final PDF to printer
coL27660_ch12_374-409.indd 374 10/17/17 11:36 AM
12
LEARNING GOALS
12.1 What are taskwork processes, and what are some examples of team activities that fall into this
process category?
12.2 What are teamwork processes, and what are some examples of team activities that fall into this
process category?
12.3 What factors influence the communication process in teams?
12.4 What are team states, and what are some examples of the states that fall into this process category?
12.5 How do team processes affect team performance and team commitment?
12.6 What steps can organizations take to improve team processes?
After reading this chapter, you should be able to answer the following questions:
Teams: Processes and
Communication
INDIVIDUAL
OUTCOMES
INDIVIDUAL
MECHANISMS
INDIVIDUAL
CHARACTERISTICS
ORGANIZATIONAL
MECHANISMS
Organizational
Culture
Organizational
Structure
Motivation
Trust, Justice,
& Ethics
Teams:
Characteristics &
Diversity
Learning &
Decision Making
Stress
Leadership:
Power &
Negotiation
Job
Satisfaction
Leadership:
Styles &
Behaviors
Organizational
Commitment
Job
Performance
GROUP
MECHANISMS
Teams:
Characteristics &
Diversity
Teams:
Processes &
Communication
Ability
Personality &
Cultural Values
Final PDF to printer
coL27660_ch12_374-409.indd 375 10/17/17 11:36 AM
F
ounded in 1975, Microsoft gained prominence by domi-
nating the world’s personal computer operating sys-
tems market, first with MS-DOS, and later, with Windows.
With Microsoft Office, the company also came to dominate
the world’s office productivity applications market. Because
of these products in particular, Microsoft experienced phe-
nomenal success and growth during its first two-and-a-half
decades. Since then, however, companies like Google, Face-
book, and Apple have surpassed Microsoft in the develop-
ment of innovative software, social media, and other tech
products. By 2012, it was clear that Microsoft’s standing in
the tech industry had eroded. Apple’s iPhone, which was only
five years old at the time, had higher sales than absolutely
everything Microsoft had to offer. What exactly went wrong?
Although Microsoft hired the best and brightest, the
company had adopted management practices that unin-
tentionally hindered the type of teamwork needed to bring
innovative products to market. The best example is the
company’s stack ranking system, which required managers
to put a specific percentage of their subordinates in “top”,
“good”, “average”, “below average”, and “poor” performing
categories. Even if a manager had a team of 10 superstars,
two would get great reviews, seven would get mediocre
reviews, and one would get a horrible review (and would
likely be looking for a new job the next day). It doesn’t take
too much of an imagination to understand how this system
promoted unhealthy competition among teammates. Rather
than sharing an idea with a teammate to move a project
forward, employees would wait until right before a perfor-
mance evaluation and then tell their manager to make sure
they got credit for the idea. Employees did whatever they
could to escape being on the bottom. They avoided work-
ing on a team with other really good employees, they sabo-
taged their teammates’ efforts, and they spent a lot of time
schmoozing managers who would be rating them.
Microsoft realized that turning things around at the
company would require that employees collaborate more
effectively. To that end, abandoning the stack ranking sys-
tem was a no-brainer. Importantly, Microsoft also changed
the focus of the feedback given to employees about their
job performance. For example, employees began receiving
feedback on how well they use ideas and information from
others, and also how well they contribute to others’ success
and the success of their team and organization. In essence,
Microsoft believed that a key to improving its competitive
position was to refocus the mindset of their employees in
a way that promotes effective teamwork and collaboration
throughout the company.
MICROSOFT
©Robert Giroux/Getty Images
Final PDF to printer
376 C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 376 10/17/17 11:36 AM
T E A M P R O C E S S E S A N D C O M M U N I C AT I O N
As we described in Chapter 11 on team characteristics and diversity, a team consists of two or more
people who work interdependently over some time period to accomplish common goals related to
some task-oriented purpose.1 The effectiveness of organizations depends to a large extent on the
activities and interactions that occur within teams as they move toward their task-related objec-
tives. Team process is a term that refers to the different types of communication, activities, and
interactions that occur within teams that contribute to their ultimate end goals.2 Team character-
istics, like member diversity, task interdependence, team size, and so forth, affect team processes
and communication. Those processes, in turn, have a strong impact on team effectiveness. In fact,
some have argued that extraordinary teams are defined in terms of their processes.3
Some of the team processes and forms of communication that we describe in this chapter are
observable by the naked eye. An outside observer would be able to see a crew of astronauts com-
municating with each other in regard to the status of the systems in their space capsule. Other
processes, in contrast, are less visible. An outside observer wouldn’t be able to see the sense of
“cohesion” felt by the members of this crew or the shared “mental models” that cause them to
work together so efficiently. Thus, team processes include interactions among members that occur
behaviorally, as well as the hard-to-see feelings and thoughts that coalesce as a consequence of
member interactions. For an example of the importance of team processes, see our OB at the
Bookstore feature.
W H Y A R E S O M E T E A M S M O R E T H A N T H E
S U M O F T H E I R PA R T S ?
Take a second and try to think of a few teams that have been successful. It’s likely that the suc-
cess of some of these teams was expected because the team had members who are very talented
and skilled. The success of other teams may be more difficult to understand just by looking at
the rosters of their members. These teams might have members who appear to be less talented
and skilled, but as they work together, they somehow became “more than the sum of their parts.”
Getting more from the team than you would expect according to the capabilities of its individual
members is called process gain. This capability, which is synonymous with the term synergy, is
most critical in situations in which the complexity of the work is high or when tasks require mem-
bers to combine their knowledge, skills, and efforts to solve problems. In essence, process gain is
important because it results in useful resources and capabilities that did not exist before the team
created them.4
Having described process gain, we now consider its polar opposite, process loss, or getting
less from the team than you would expect based on the capabilities of its individual members. To
understand process loss, think of an experience you’ve had with a team you felt was a sure bet
to do well based on the capabilities of the members, but didn’t achieve the level of success you
expected. You may be thinking of a sports team where the members were the best athletes or the
best at their respective positions, but the players just didn’t seem to mesh well, and as a result,
the team didn’t win. Or perhaps you’re thinking of a student team with an assignment to do a
term project, and although the team was composed of the brightest students in class, it became
apparent on presentation day that the team’s ideas weren’t very creative or well-executed, and as a
result, the project paled in comparison with the projects of the other student teams. If you’ve had
an experience like this, you know how frustrating it can be. In reality, process loss is a common
and costly by-product of doing work in teams.
But what factors conspire to create process loss? One factor is that in teams, members have to
work to not only accomplish their own tasks, but also coordinate their activities with the activi-
ties of their teammates.5 Although this extra effort focused on integrating work is a necessary
aspect of the team experience, it’s called coordination loss because it consumes time and energy
Final PDF to printer
377C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 377 10/17/17 11:36 AM
OB AT THE BOOKSTORE
SMART COLLABORATION
Heidi K. Gardner (Boston: Harvard Business Review Press, 2016).
The most important challenge faced by any such organization is bringing that collective exper-
tise to bear on problems that, increasingly, are so complicated and so sophisticated that no single
expert—no matter how smart or hardworking—is in a position to solve them.
With those words, Heidi Gardner hints at why effective team pro-
cesses are indispensable to professional service firms, which refer
to companies that deliver specialized services—things like architec-
ture, auditing, engineering, management consulting, and law—to cli-
ents. Gardner argues that devising solutions to highly complex and
uncertain problems requires highly specialized professionals who
not only possess the requisite knowledge and expertise in a collec-
tive sense, but also the ability to engage in “smart collaboration.”
According to Gardner, smart collaboration does not mean that the
teams of professionals “divide and conquer,” or that members hand
off their contributions to other members in a sequential fashion.
Instead, smart collaboration involves effective repeated interactions
among a team of professionals, “that, over time, allow the creative
recombinations of different people’s information, perspectives, and
expertise.”
The book is largely a business case for the role of effective team
processes in producing creative solutions to client problems. For
example, Gardner shares research that indicates clients prefer to work with firms that engage in
smart collaboration, and that as the level of smart collaboration increases, so does firm revenue
and profit. Gardner also discusses implications of smart collaboration to professionals who may
have grown accustomed to working independently. For example, “solo specialists,” or profession-
als in the middle and upper ranks of a firm who possess a strong reputation in a particular niche,
and who may be considered the “go-to” experts by a long list of clients, are not inclined to collabo-
rate because of the time and effort needed to coordinate, and because they fear that potential col-
laborators could ruin client relationships that took years to develop. However, Gardner provides
evidence that a successful solo specialist can significantly increase business by engaging in smart
collaboration, and thus, the extra effort spent in selecting potential collaborators and helping
them develop can prove to be very worthwhile.
©Roberts Publishing Services
that could otherwise be devoted to task activity.6 Such coordination losses are often driven by
production blocking, which occurs when members have to wait on one another before they can do
their part of the team task.7 If you’ve ever worked in a team in which you felt like you couldn’t get
any of your own work done because of all the time spent in meetings, following up requests for
information from other team members, and waiting on team members to do their part of the team
task, you already understand how frustrating production blocking (and coordination loss) can be.
In the context of a game like soccer, production blocking might occur if a player has to wait too
long for a teammate to get into position to receive the ball before making a pass.
The second force that fosters process loss in team contexts is motivational loss, or the loss
in team productivity that occurs when team members don’t work as hard as they could.8 Why
Final PDF to printer
378 C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 378 10/17/17 11:36 AM
does motivational loss occur in
team contexts? One explana-
tion is that it’s often quite diffi-
cult to gauge exactly how much
each team member contributes
to the team. Members of teams
can work together on projects
over an extended period of
time, and as a consequence,
it’s difficult to keep an accu-
rate accounting of who does
what. Similarly, members con-
tribute to their team in many
different ways, and contribu-
tions of some members may be
less obvious than the contribu-
tions of others. Finally, members
of teams don’t always work together at the same time as a unit. Regardless of the reasons for it,
uncertainty regarding “who contributes what” results in team members feeling less accountable
for team outcomes. Those feelings of reduced accountability, in turn, cause members to exert less
effort when working on team tasks than they would if they worked alone on those same tasks. This
phenomenon is called social loafing,9 and it can significantly hinder a team’s effectiveness.10 In
the context of a student team responsible for a project, motivational loss and social loafing may
result if some students on the team come to depend on a student who is particularly motivated
and knowledgeable.
TAS K WO R K P R O C E S S E S
Having described process gains and process losses, it’s time to describe the particular team pro-
cesses that can help teams increase the former, while reducing the latter. One relevant category
of team processes is taskwork processes, which are the activities of team members that relate
directly to the accomplishment of team tasks. In a general sense, taskwork occurs any time that
team members interact with the tools or technologies that are used to complete their work. In
this regard, taskwork is similar to the concept of task performance described in Chapter 2 on job
performance. However, in the context of teams, especially those that engage in knowledge work,
three types of taskwork processes are crucially important: creative behavior, decision making, and
boundary spanning. These three taskwork processes are shown in Figure 12-1.
CREATIVE BEHAVIOR When teams engage in creative behavior, their activities are focused
on generating novel and useful ideas and solutions.11 In Chapter 9 on personality and cul-
tural values, we noted that creative behavior is driven in part by the creativity of individual
employees, because some employees are simply more original and imaginative than others.
Researchers have also found that creativity in teams may be affected by characteristics such
as conformity and attention to detail.12 However, the team environment is also uniquely suited
to fostering creative behavior.13 As a consequence, organizations like Palo Alto–based IDEO,
arguably the world’s most successful product design firm, rely on teams to come together and
combine their members’ unique sets of knowledge and skill in a manner that results in novel
and useful ideas.14 However, achieving such outcomes depends on much more than just putting
a diverse mix of people together and letting them go at it. In fact, creative behavior in teams
can be fostered when members participate in a specific set of activities. For example, team
members have to be open to developing informal means of coordinating when potential syner-
gies are discovered in the knowledge possessed among specific members or subgroups within
in a team.15
Perhaps the best-known activity that teams use to foster creative behavior is brainstorming.
Generally speaking, brainstorming involves a face-to-face meeting of team members in which each
12.1
What are taskwork pro-
cesses, and what are some
examples of team activities
that fall into this process
category?
The U.S. women’s soccer
team was favored in the
early rounds of the 2015
World Cup but failed to
perform to their potential
due to process loss. The
team achieved synergy
in the final game against
Japan, however. In fact,
their 5–2 victory was one
of the most dominating
performances ever in a
Women’s World Cup final.
©Andy Clark/Getty Images
Final PDF to printer
379C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 379 10/17/17 11:36 AM
offers as many ideas as possible about some focal problem or issue.16 Most brainstorming sessions
center around the following rules:
1. Express all ideas that come to mind (no matter how strange).
2. Go for quantity of ideas rather than quality.
3. Don’t criticize or evaluate the ideas of others.
4. Build on the ideas of others.
The idea is that if a team follows these rules, it will develop a large pool of ideas that it can use
to address the issue at hand.17 This concept sounds very reasonable, and almost all of us have been
in some sort of brainstorming meeting at some point. However, it may surprise you to learn that
such brainstorming sessions rarely work as well as intended. In fact, research suggests that team
members would be better off coming up with ideas on their own, as individuals, before pooling
those ideas and evaluating them to arrive at a solution.18
Why doesn’t brainstorming work as well as individual idea generation? There appear to be at
least three reasons.19 First, there may be a tendency for people to social loaf in brainstorming ses-
sions. That is, members may not work as hard thinking up ideas as they would if they had to turn
in an individually generated list with their name on it. Second, though the rules of brainstorming
explicitly forbid criticizing others’ ideas, members may be hesitant to express ideas that seem silly
or not well thought-out. Third, brainstorming results in production blocking because members
have to wait their turn to express their ideas. This waiting around consumes time that could other-
wise be used by individuals to generate new ideas.
Given the problems associated with brainstorming, why do organizations continue to use it?
One reason is that the general idea of brainstorming is well known, and common sense leads
people to believe that it works as advertised. Another reason is that there are benefits of brain-
storming beyond just generating ideas. For example, brainstorming builds morale and results in
the sharing of knowledge that might otherwise be locked inside the minds of the individual team
members.20 Although this knowledge may not be useful for the particular problem that’s being
debated, it might be useful for issues that arise in the future. To achieve the benefits of brainstorm-
ing, some companies take extra steps to ensure team members are fully engaged in the process
of generating ideas. At IDEO, for example, brainstorming meetings often open with a warm-up
session, typically a fast-paced word game to clear the minds of the participants.21 Table 12-1 lists
secrets of better brainstorming, as practiced at IDEO.
One offshoot of brainstorming that addresses some of its limitations is the nominal group
technique.22 Similar to a traditional brainstorming session, this process starts off by bringing the
team together and outlining the purpose of the meeting. The next step takes place on an individual
level, however, as members have a set period of time to write down their own ideas on a piece of
paper. The subsequent step goes back into the team setting, as members share their ideas with the
team in a round-robin fashion. After the ideas are recorded, members have a discussion intended
FIGURE 12-1 Taskwork Processes
Creative
Behavior
Decision
Making
Boundary
Spanning
Taskwork
Processes
Final PDF to printer
380 C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 380 10/17/17 11:36 AM
to clarify the ideas and build on the ideas of others. After this, it’s back to an individual environ-
ment; members rank order ideas on a card that they submit to a facilitator. A facilitator then
tabulates the scores to determine the winning idea. From this description, you probably can guess
how the nominal group technique addresses the problems with brainstorming. By making people
write down ideas on their own, it decreases social loafing and production blocking. Although
team members might still be hesitant about expressing wild ideas to the group, doing so might
be less threatening than having nothing to contribute to the group. In addition, ranking items as
individuals makes people less apprehensive about going “against the grain” of the group by voicing
support for an unpopular idea.
DECISION MAKING In Chapter 8 on learning and decision making, we described how people
use information and intuition to make specific decisions. In team contexts, however, decisions
result from the interaction among team members. Information that is gathered and shared among
members is synthesized into collective knowledge, which is then used as a basis for different types
of team decisions.23 In some team contexts. members share information regarding a problem
or task, and they work together to reach a consensus, or general agreement among members in
regards to the final solution. Juries provide a good example of how this type of decision making
works. Members of a jury listen to information provided by attorneys and witnesses, and after
they’re given instructions by a judge, they meet privately to discuss the information with the goal
being to reach a consensus regarding the verdict.
There has been a great deal of research on consensus decision making in the context of juries;
however, the most important lesson from this research is that the strongest predictor of the final
verdict is the distribution of the positions the individual jury members have in mind going into
deliberations.24 In fact, the position held by the majority of the jury members prior to deliberation
WHAT TO DO DESCRIPTION
Have a sharp focus Begin the brainstorming with a clearly stated problem.
Playful rules Encourage playfulness, but don’t debate or critique ideas.
Number the ideas Make it easier to jump back and forth between ideas.
Build and jump Build on and explore variants of ideas.
The space remembers Use space to keep track of the flow of ideas in a visible way.
Stretch your brain Warm up for the session by doing word games.
Get physical Use drawings and props to make the ideas three-dimensional.
WHAT NOT TO DO DESCRIPTION
The boss speaks first Boss’s ideas limit what people will say afterwards.
Give everybody a turn Forcing equal participation reduces spontaneity.
Only include experts Creative ideas come from unexpected places.
Do it off-site You want creativity at the office too.
Limit the silly stuff Silly stuff might trigger useful ideas.
Write down everything The writing process can reduce spontaneity.
Source: T. Kelley and J. Littman, The Art of Innovation (New York: Doubleday, 2001).
TABLE 12-1 IDEO’s Secrets for Brainstorming
Final PDF to printer
381C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 381 10/17/17 11:36 AM
turns out to be the final verdict 90 percent of the time.25 It’s not that jury members with the
minority position simply acquiesce to the majority because of pressure, but rather, having more
jury members in the majority increases the information and arguments available that support the
majority.26 Interestingly, however, despite all the research on consensus decision making, there is
not a lot of evidence that this research has been very useful to attorneys and trial consultants in
composing juries in a way that would lead to favorable decisions for their side.27
In other team contexts, decision making involves multiple members gathering and consider-
ing information that’s relevant to their area of specialization, and then making recommendations
to a team leader who is ultimately responsible for a final decision, which at some point, can be
judged with regard to accuracy or effectiveness.28 Although the degree of member specialization
and hierarchical structure of teams vary a great deal,29 you can understand this type of decision-
making process if you consider what happens on project teams with an assigned leader and
members who are responsible for different aspects of the project; design, engineering, marketing,
logistics, sales, and so forth. Throughout the project, members make suggestions and recommen-
dations to the leader, who’s ultimately responsible for making the decisions that determine the
success of the project.
What factors account for a team’s ability to make accurate and effective decisions? At least
three factors appear to be involved.30 The first factor is decision informity, which reflects whether
members possess adequate information about their own task responsibilities. Project teams can
fail, for example, because the team member in charge of marketing doesn’t gather information nec-
essary to help the team understand the desires and needs of the client. The second factor is staff
validity, which refers to the degree to which members make good recommendations to the leader.
Team members can possess all the information needed to make a good recommendation but then
fail to do so because of a lack of ability, insight, or good judgment. The third factor is hierarchical
sensitivity, which reflects the degree to which the leader effectively weighs the recommendations
of the members. Whom does the leader listen to, and whom does the leader ignore? Teams that
make good decisions tend to have leaders that do a good job giving recommendations the weight
they deserve. Together, these three variables play a large role in how effective teams are in terms
of their decision making.31
The concepts of decision informity, staff validity, and hierarchical sensitivity can be used to
make specific recommendations for improving team decision making. For example, research
shows that more experienced teams tend to make better decisions because they develop an
understanding of the information that’s needed and how to use it, and have leaders that develop
an understanding of which members provide the best recommendations.32 The implication here
is that team decision making may be improved if teams are allowed to work together on an ongo-
ing basis across different projects. As another example, team decision making may be improved
by giving members feedback about the three variables involved in the decision-making process.33
For instance, a team can improve its decision making if the members are told that they have
to share and consider additional pieces of information before making recommendations to the
leader. Although this recommendation may seem obvious, all too often teams receive feedback
only about their final decision. In addition, there may be a benefit to separating the process
of sharing information from the process of making recommendations and final decisions, at
least in terms of how information is communicated among members.34 Whereas team members
tend to share more information when they meet face-to-face, leaders do a better job considering
recommendations and making final decisions when they’re away from the members. Leaders
who are separated don’t have to deal with pressure from members who may be more assertive
or better at articulating and defending their positions. Our OB Internationally feature describes
additional considerations that need to be taken into account to improve decision making in cul-
turally diverse teams.35
BOUNDARY SPANNING The third type of taskwork process is boundary spanning, which
involves three types of activities with individuals and groups other than those who are consid-
ered part of the team.36 Ambassador activities refer to communications that are intended to
protect the team, persuade others to support the team, or obtain important resources for the
team. As you might have guessed from this description, members who engage in ambassador
Final PDF to printer
382 C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 382 10/17/17 11:36 AM
activities typically communicate with people who are higher up in the organization. For exam-
ple, a member of a marketing team might meet with senior management to request an increase
in the budget for an expanded television ad campaign. Task coordinator activities involve com-
munications that are intended to coordinate task-related issues with people or groups in other
functional areas. Continuing with the marketing team example, a member of the team might
meet with someone from manufacturing to work out how a coupon might be integrated into the
product packaging materials. Finally, scout activities refer to things team members do to obtain
information about technology, competitors, or the broader marketplace. The marketing team
member who meets with an engineer to seek information about new materials is engaging in
scout activities.
Taken together, research suggests that these three boundary-spanning activities may be as
important to determining team success as the processes that occur entirely within the team.37
Many teams in organizations are involved with complex work that requires going outside the
In today’s global economy, organizations have become increasingly reliant on multinational teams,
or teams composed of individuals who do not share the same national identification. One benefit
of multinational teams is economic. Rather than having separate businesses or products in several
different countries, organizations leverage economies of scale by establishing multinational teams
to develop and manage global products. A second benefit is that diversity in terms of national
origin may result in business decisions that are more innovative. Such innovation stems from
the team having a diverse set of experiences and perspectives from which to draw when trying to
accomplish work. However, along with these benefits are potential team process problems. The
most obvious problem is language barriers that prevent team members from communicating effec-
tively with one another. Beyond simple misunderstandings, communication barriers can result in
difficulties in coordinating tasks and may hinder members from receiving or understanding the
information they need to make good recommendations and decisions. So what can multinational
teams do to address some of these problems?
One solution is group decision support systems, which involve the use of computer technology
to help the team structure its decision-making process. As an example, team members might meet
in a room where each member sits at a networked laptop. At different points during the meet-
ing, members are directed to enter their ideas and recommendations into the computer. These
inputs are then summarized and shared visually with the entire team on their computer screens.
Advantages of this approach are that the system keeps the meeting focused squarely on the task,
and information can be presented in a logical sequence at a pace that makes it easier to digest.
Moreover, no single member can dominate the meeting. As a consequence of these advantages,
team members may participate more uniformly in the meeting and develop a more consistent
understanding of the information that was exchanged. Another advantage is that the technique
can be modified and used when members are geographically dispersed.
OB INTERNATIONALLY
Sources: T. Cox, S. Lobel, and P. McLeod, “Effects of Ethnic Group Cultural Differences on Cooperative and Competitive
Behavior on a Group Task,” Academy of Management Journal 34 (1991), pp. 827–47; P. Dwyer, P. Engardio, S. Schiller,
and S. Reed, “The New Model: Tearing up Today’s Organization Chart,” BusinessWeek, November 18, 1994, pp. 80–90;
D.R. Ilgen, J.A. LePine, and J.R. Hollenbeck, “Effective Decision Making in Multinational Teams,” in New Perspectives
in International Industrial–Organizational Psychology, ed. P.C. Earley and M. Erez (San Francisco: Jossey-Bass, 1997),
pp. 377–409; E. Mannix and M.A. Neal, “What Differences Make a Difference? The Promise and Reality of Diverse
Teams in Organizations,” Psychological Science in the Public Interest 6 (2005), pp. 31–55; and J.M. Prieto Zamora and
R. Martinez Arias, “Those Things Yonder Are Not Giants, but Decision Makers in International Teams,” in New Perspec-
tives on International Industrial and Organizational Psychology, ed. P.C. Earley and M. Erez (San Francisco: New Lexington
Press, 1997), pp. 410–45.
Final PDF to printer
383C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 383 10/17/17 11:36 AM
team to coordinate, and for support, resources, and information. To the extent that teams do
not exist in a vacuum, it can be beneficial to have members with the expertise, experiences,
and the type of disposition to engage in the type of boundary spanning activities we dis-
cussed here.38 For an example of a team that relies extensively on boundary spanning, see our
OB on Screen feature.
OB ON SCREEN
SPOTLIGHT
We are a four-person investigative team, we report to Ben Bradlee Jr., and we keep our work
confidential.
With those words, Walter “Robby” Robinson (Michael Keaton) provides a brief description of
his team of investigative reporters to Marty Baron (Liev Schreiber), the incoming editor of the
Boston Globe, in the reality-based movie, Spotlight (Dir. Tom McCarthy, Participant Media, 2016).
Robinson is meeting with Baron for the first time over lunch. The Globe’s circulation has been fall-
ing, and there are rumors that Baron fired a lot of people at his last paper in Miami, so Robinson
is concerned about the future of his team, called Spotlight. Although Baron plays coy about the
issue at their lunch meeting, the next day there’s another meeting, during which he asks Spotlight
to take on a very difficult assignment: Investigate and write a story about a cover-up involving
Catholic priests in Boston who have been caught molesting children but were never prosecuted.
Although the film depicts many of the team processes and communication concepts that we dis-
cuss in this chapter, it serves as a particularly good illustration of boundary spanning. In the meeting
described above, for example, Robinson describes the unique role of Spotlight at the paper, and tries
to gauge whether his team will continue to be supported by Baron. This is a clear example of an ambas-
sador activity. In other scenes, members of Spotlight engage in task coordinator activities. For exam-
ple, team member Mike Rezendes (Mark Ruffalo) meets with attorney Mitchell Garabedian (Stanley
Tucci) to ask if some of his clients—the molestation victims—would agree to be interviewed. Finally,
there are many scenes that illustrate scouting activities. For example, members of the Spotlight team
scan old news stories on microfiche, search for names in directories, and conduct interviews with peo-
ple in search of information that can be pieced together to advance the story or fill gaps in the team’s
understanding. Although members of Spotlight are quite intelligent, determined, and skilled, it’s clear
that the team’s success hinges almost entirely on the effectiveness of their boundary spanning.
©Photo 12/Alamy
Final PDF to printer
384 C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 384 10/17/17 11:36 AM
T E A M WO R K P R O C E S S E S
Another category of team process that helps teams increase their process gain while minimizing
their process loss is teamwork processes. Teamwork processes refer to the interpersonal activities
that facilitate the accomplishment of the team’s work, but do not directly involve task accomplish-
ment itself.39 You can think of teamwork processes as the behaviors that create the setting or
context in which taskwork can be carried out. So what types of behaviors do teamwork processes
involve? Figure 12-2 summarizes the set of teamwork processes that we discuss in this chapter.40
TRANSITION PROCESSES Teamwork processes become important as soon as teams first
begin their work. Transition processes are teamwork activities that focus on preparation for future
work. For example, mission analysis involves an analysis of the team’s task, the challenges that
face the team, and the resources available for completing the team’s work. Strategy formulation
refers to the development of courses of action and contingency plans, and then adapting those
plans in light of changes that occur in the team’s environment. Finally, goal specification involves
the development and prioritization of goals related to the team’s mission and strategy. Although
these examples focus on the team’s taskwork activities, transition processes could focus on team-
work as well. For example, a team could develop a plan intended to enhance teamwork among
members over the course of a long project.41 Each of these transition processes is relevant before
the team actually begins to conduct the core aspects of its work. However, these transition pro-
cesses also may be important between periods of work activity. For example, think about the half-
time adjustments made by a basketball team that’s losing a game badly. The team could consider
the strengths of its opponent and develop a new strategy intended to neutralize them. In this way,
teams may switch from transition processes to taskwork, then back to transition processes. As
another example, debriefing and after-action reviews, which refer to systematic discussions and
reviews of performance episodes, have been used by the military for decades. However, because
they work so well in improving the effectiveness of teams, their use is spreading to nonmilitary
organizations as well.42
ACTION PROCESSES Whereas transition processes are important before and between periods
of taskwork, action processes are important as the taskwork is being accomplished. One type of
action process involves monitoring progress toward goals. Teams that pay attention to goal-related
information—perhaps by charting the team’s performance relative to team goals—are typically in a
good position to realize when they are “off-track” and need to make changes. Systems monitoring
involves keeping track of things that the team needs to accomplish its work. A team that does not
engage in systems monitoring may fail because it runs out of inventory, time, or other necessary
resources. Helping behavior involves members going out of their way to help or back up other team
members. Team members can provide indirect help to their teammates in the form of feedback or
coaching, as well as direct help in the form of assistance with members’ tasks and responsibilities.
Helping behavior tends to be higher in teams with members who share in the belief that it’s appro-
priate to invest effort in benefiting others, and may be most beneficial to teams when workload
is distributed unequally among members.43 Coordination refers to synchronizing team members’
12.2
What are teamwork pro-
cesses, and what are some
examples of team activities
that fall into this process
category?
FIGURE 12-2 Teamwork Processes
Transition
Processes
Action
Processes
Action
Processes
Transition
Processes
Interpersonal
Processes
TIME
Teamwork
Processes
Final PDF to printer
385C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 385 10/17/17 11:36 AM
activities in a way that makes them mesh effectively and seamlessly. Poor coordination results in
team members constantly having to wait on others for information or other resources necessary to
do their part of the team’s work.44
INTERPERSONAL PROCESSES The third category of teamwork processes is called
interpersonal processes. The processes in this category are important before, during, or between
periods of taskwork, and each relates to the manner in which team members manage their rela-
tionships. The first type of interpersonal process is motivating and confidence building, which
refers to things team members do or say that affect the degree to which members are motivated
to work hard on the team’s task. Expressions that create a sense of urgency and optimism are
examples of communications that would fit in this category. Similarly, affect management involves
activities that foster a sense of emotional balance and unity. If you’ve ever worked in a team in
which members got short-tempered when facing pressure or blamed one another when there were
problems, you have firsthand experience with poor affect management.
Another important interpersonal process is conflict management, which involves the activi-
ties that the team uses to manage conflicts that arise in the course of its work. Conflict tends
to have a negative impact on a team, but the nature of this effect depends on the focus of the
conflict as well as the manner in which the conflict is managed.45 Relationship conflict refers to
disagreements among team members in terms of interpersonal relationships or incompatibilities
with respect to personal values or preferences. This type of conflict centers on issues that are
not directly connected to the team’s task. Relationship conflict is not only dissatisfying to most
people, it also tends to result in reduced team performance. Task conflict, in contrast, refers to
disagreements among members about the team’s task. Logically speaking, this type of conflict
can be beneficial to teams if it stimulates conversations that result in the development and expres-
sion of new ideas.46 Research findings, however, indicate that task conflict tends to result in
reduced team effectiveness unless several conditions are present.47 First, members need to trust
one another and be confident that they can express their opinions openly without fear of repri-
sals. Second, team members need to engage in effective conflict management practices. In fact,
because task conflict tends to be most beneficial to teams when relationship conflict is low, there
are reasons to focus conflict management efforts on trying to reduce this aspect of conflict.48
Third, there’s some evidence that task conflict may benefit teams when they’re composed in cer-
tain ways. For example, task conflict has been shown to be most beneficial to teams comprised
of members who are either emotionally stable or open to new experiences.49 Finally, the benefits
of task conflict may be most evident when the conflict is positively skewed, or in other words,
when the majority of the members of a team are unaware of the conflict that occurs among a few
members of the team.50 (For more discussion of conflict management issues, see Chapter 13 on
leadership power and negotiation.)
So what does effective conflict management involve? First, when trying to manage conflict, it’s
important for members to stay focused on the team’s mission. If members do this, they can rationally
evaluate the relative merits of each position.51 Second, any benefits of task conflict disappear if the level
of the conflict gets too heated, if par-
ties appear to be acting in self-interest
rather than in the best interest of the
team, or if there’s high relationship
conflict.52 Third, to effectively manage
task conflict, members need to discuss
their positions openly and be willing to
exchange information in a way that fos-
ters collaborative problem solving.53
If you’ve ever had an experience in
an ongoing relationship in which you
tried to avoid uncomfortable conflict
by ignoring it, you probably already
understand that this strategy tends to
only make things worse in the end.
For task conflict to be
productive, team members
must feel free to express
their opinions and know
how to manage conflict
effectively.
©Caiaimage/Glow Images
Final PDF to printer
386 C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 386 10/17/17 11:36 AM
C O M M U N I CAT I O N
So far in this chapter, we’ve described the focus of the activities and interactions among team
members as they work to accomplish the team’s purpose. For example, taskwork processes involve
members sharing ideas, making recommendations, and acquiring resources from parties outside
the team. As another example, teamwork processes involve members planning how to do the
team’s work, helping other team members with their work, and saying things to lift team members’
spirits. Now we shift gears a bit and focus our attention on communication, the process by which
information and meaning get transferred from a sender to a receiver.54 Much of the work that’s
done in a team is accomplished interdependently and involves communication among members,
and therefore, the effectiveness of communication plays a crucial role in determining whether
there is process gain or process loss.
One way to understand communication is to consider the model depicted in Figure 12-3.55 On
the left side of the model is the source or sender of information. In a team that manufactures steel
engine parts, for example, the sender might be a team member who wants to share information
with another team member. More specifically, the sender might want to let another member know
that the team has to work more quickly to reach a difficult performance goal. Generally speaking,
senders may use verbal and written language, as well as nonverbal language and cues, to encode the
information into a message. Continuing with our example, the sender may choose to quickly wave
an arm up and down to convey the idea that the team needs to work faster. This encoded message
is transmitted to a receiver, who needs to interpret or decode the message to form an understand-
ing of the information it contains. In our example, the message is transmitted visually because the
members are working face-to-face, but messages can be transmitted in written form, electronically,
or even indirectly through other individuals. With this basic model of communication in mind, we
can consider factors that may influence the effectiveness of this process.
COMMUNICATOR ISSUES One important factor that influences the communication process
is the communicators themselves. Communicators need to encode and interpret messages, and it
turns out that these activities can be major sources of communication problems.56 In our example,
the receiver may interpret the arm waving as a message that something is going wrong and that
the team needs to slow down to cope with the problem. Of course, this interpretation is the exact
opposite of what the sender intended to convey. The communication process may also suffer if
the participants lack communication competence, which refers to the skills involved in encoding,
transmitting, and receiving messages.57 In fact, it may have already occurred to you that perhaps
the sender in our example should have chosen an alternative way to communicate the idea that
the team needs to work more quickly. Along the same lines, a receiver who isn’t skilled in listening
carefully to a sender’s message may misinterpret a message or miss it altogether.
12.3
What factors influence the
communication process in
teams?
FIGURE 12-3 The Communication Process
Noise
Information
Sender Encoding Message Decoding Receiver
Understanding
Final PDF to printer
387C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 387 10/17/17 11:36 AM
An additional communicator issue relevant to the communication process in teams relates to
the emotions and emotional intelligence of team members,58 issues we discussed in Chapter 4 on
job satisfaction and Chapter 10 on ability. Emotions can affect how people express themselves
and can also cloud their interpretation of information they receive from others.59 Therefore, team
members’ ability to regulate their emotions and understand the emotions of others can result in
clearer communications that are less prone to misunderstanding. Although you might think that
emotions are mostly relevant to communications involving face-to-face interactions among team
members, emotions can interfere with electronically mediated communications, and therefore,
they are relevant to virtual teams as well.60
NOISE A second factor that influences the communication process is the presence of noise that
interferes with the message being transmitted.61 Depending on how the message is being trans-
mitted, noise can take on several different forms. In the context of our example, the sender and
receiver may be working several feet from one another, and steam from the manufacturing pro-
cess may make it difficult to see and appreciate the meaning of the gestures members make. As
another example, you’ve probably had difficulty trying to hold a conversation with someone in a
restaurant or at a party because of blaring music or crowd noise. If so, you can understand that
noise increases the effort that the communicators need to exert to make the communication pro-
cess work. The sender has to talk louder and more clearly and perhaps increase the use of alterna-
tive means of communicating, such as using hand gestures to help clarify messages. In addition,
the receiver has to listen more carefully and think harder to fill in the spaces left by spoken words
that are impossible to hear. If one of the two parties to the communication isn’t willing to put in
the extra effort to send and receive messages when there is noise, the conversation likely will not
last very long.
INFORMATION RICHNESS A third factor that influences the communication process is
information richness, which is the amount and depth of information that gets transmitted in a
message.62 Messages that are transmitted through face-to-face channels have the highest level of
information richness63 because senders convey meaning both through language, and also non-
verbally through body language, facial expressions, and tone of voice.64 Face-to-face communi-
cation also achieves high information richness because it provides the opportunity for senders
and receivers to receive feedback, which allows them to verify and ensure their messages are
received and interpreted correctly. At the opposite end of the information richness spectrum are
computer-generated reports that consist largely of numbers.65 Although these types of reports
may include a lot of information, they’re limited to information that’s quantifiable, and there’s an
absence of additional cues that could provide context and meaning to the numbers. A personal
written note is a good example of a message with a moderate level of information richness.66
Although the information in a note is limited to the words written down on the page, the choice
of words and punctuation can add meaning beyond the words themselves. For example, research
shows that recipients of e-mails try to interpret the emotions of the sender from the content of
the message, and unfortunately, they often mistakenly perceive the emotion as negative even
when it’s not.67
From our description, it may sound as though higher levels of information richness are prefer-
able to lower levels. This assertion is true when the situation or task at hand is complex and diffi-
cult to understand.68 In this case, the more cues that
are available to the receiver, the more likely it is that
the message will be understood the way the sender
intended it to be. However, the benefits of informa-
tion richness may overcomplicate the communi-
cation process when the task at hand is relatively
simple and straightforward.69 The additional infor-
mation that needs to be interpreted by the receiver
increases the chance that some of the cues will seem
contradictory, and when this happens, receivers may
feel like they’re being sent “mixed messages.” In sum-
mary, the appropriate level of information richness
Communicator emotions
can play a big role in the
communication process.
©djile/Shutterstock
Final PDF to printer
388 C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 388 10/17/17 11:36 AM
depends on the nature of the team’s situation: The greater the level of complexity in the work
being accomplished by the team, the more likely it is that the benefits of information richness
outweigh its costs.
NETWORK STRUCTURE So far in our discussion of communication, we’ve kept things simple
by focusing on the flow of information between two people—a sender and a receiver. Of course,
teams typically have more than just two people, so it’s important at this point to consider the
implications of this additional complexity. One way to understand communication in teams com-
posed of more than two people is to consider the concept of network structure, which is defined as
the pattern of communication that occurs regularly among each member of the team.70
As depicted in Figure 12-4, communication network patterns can be described in terms of
centralization, or the degree to which the communication in a network flows through some
members rather than others.71 The more communication flows through fewer members of the
team, the higher the degree of centralization. You can think of the circles in the figure as team
members, and the lines between the circles represent the flow of communication back and forth
between the two members. On the left side of the figure is the all channel network structure,
which is highly decentralized. Every member can communicate with every other member. Stu-
dent teams typically communicate using this type of structure. On the right side of the figure,
at the other extreme, is the wheel network structure. This network structure is highly centralized
because all the communication flows through a single member. Teams that use a wheel struc-
ture often consist of an “official” leader who makes final decisions based on recommendations
from members who have expertise in different fields. Although there are many other configura-
tions you can easily think of, we also included the circle and Y structures to illustrate examples
that fall between the extremes in terms of the level of centralization.
So why are network structures important to learn about? Quite a bit of research on this topic
suggests that network structure has important implications for team effectiveness, though those
implications depend on the nature of the team’s work.72 On the one hand, when the work is
simple and straightforward, a centralized structure tends to result in faster solutions with fewer
mistakes. On the other hand, when the work is complex and difficult to understand, a decen-
tralized structure tends to be more efficient. Apparently, when work is complex and difficult to
understand, the team can benefit if members have the ability to communicate with anyone on
the team to get assistance or resolve problems. When the work is simple and easy to understand,
the additional communication channels afforded by a decentralized structure become unnec-
essary and divert members’ attention from the task. It’s important to mention, however, that
FIGURE 12-4 Communication Network Structures
All Channel Circle WheelY
Higher Member Satisfaction Lower
Higher
Higher
HigherLower
Lower
Lower
Centralization of Communication
E�ectiveness in Simple Tasks
E�ectiveness in Complex Tasks
Final PDF to printer
389C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 389 10/17/17 11:36 AM
members tend to prefer decentralized network structures. That is, they tend to be more satisfied
with the team when they are “in the loop,” even though their position in the loop might not help
the team perform more effectively.
Communication among team members in organizations has become more decentralized over
the past decade or so. One reason for this trend is that social network media have become inexpen-
sive and easy to use. User-centered Web 2.0 tools and collaboration software such as Microsoft
SharePoint, Jive, and Google Hangouts allow individuals to share information and collaborate
in real time, and many companies, such as AT&T, General Electric, FedEx, and Atlanta–based
Manheim Auctions, Inc., have developed their own versions of Facebook and LinkedIn for their
employees to use internally.73 Individuals working together can use these tools, along with mobile
devices to communicate with each other at a moment’s notice. While such technologies provide
obvious advantages to virtual teams, teams that work together at the same office also benefit from
these tools. A team member who has an inspiration or discovers an important breakthrough over
the weekend no longer has to wait until Monday to share it and get feedback from teammates. It
also might surprise you to learn that the use of mobile devices for communication among team-
mates is especially popular in underdeveloped regions such as Africa, where the number of these
devices far exceeds the number of computers. In fact, companies such as Coca-Cola train in the
use of mobile devices so that teams that operate in these regions can communicate and interact
more effectively.74
Before moving on to the next topic, we should note that the use of technology does not neces-
sarily improve the communication process. Some individuals may lack the competence or con-
fidence to use these newer means of communication, resulting in their reluctance or inability
to participate fully in collaborative efforts that take place using these technologies. As another
example, social media reduce the perceived cost of expressing ideas and opinions. This could
result in an overabundance of information, and the spread of misinformation and rumors that
add noise to communication. The use of Twitter during the Haiti earthquake, for example, led to
rumors that contributed to anxiety and uncertainty of those directly and indirectly involved in
the disaster.75
T E A M STAT E S
A fourth category of team processes that helps teams increase their process gain while minimiz-
ing their process loss is less visible to the naked eye. Team states refer to specific types of feelings
and thoughts that coalesce in the minds of team members as a consequence of their experience
working together. For example, as a consequence of supportive leadership and positive member
interactions, team members may develop feelings of psychological safety, or the sense that it is
OK to do things that are interpersonally risky, or that expressing opinions and making sugges-
tions that challenge the status quo won’t be met with embarrassment and rejection at the hands
of teammates.76 Ostracism in a team context can be painful and lead to disengagement and other
negative consequences to the individual and to the team.77 Although there are many types of
team states that we could review in this chapter, Figure 12-5 summarizes the set of team states
we discuss.
COHESION For a number of reasons, such as having trusting relationships, members of teams
can develop strong emotional bonds to other members of their team and to the team itself.78 This
emotional attachment, which is called cohesion,79 tends to foster high levels of motivation and
commitment to the team, and as a consequence, cohesiveness tends to promote higher levels of
team performance.80 Of course, it might not surprise you to learn that there is a reciprocal rela-
tionship with team performance. That is, the higher team performance that results, in part, from
higher cohesion, may, in turn, further enhance team cohesion.81
But is a cohesive team necessarily a good team? According to researchers, the answer to this
question is no. In highly cohesive teams, members may try to maintain harmony by striving
toward consensus on issues without ever offering, seeking, or seriously considering alternative
viewpoints and perspectives. This drive toward conformity at the expense of other team priori-
ties is called groupthink and is thought to be associated with feelings of overconfidence about
12.4
What are team states, and
what are some examples of
the states that fall into this
process category?
Final PDF to printer
390 C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 390 10/17/17 11:36 AM
the team’s capabilities.82 Groupthink has been blamed for decision-making fiascos in politics as
well as in business. Some famous examples include John F. Kennedy’s decision to go forward
with the Bay of Pigs invasion of Cuba,83 NASA’s decision to launch the space shuttle Challenger
in unusually cold weather,84 and Enron’s board of directors’ decisions to ignore illegal account-
ing practices.85
So how do you leverage the benefits of cohesion without taking on the potential costs? One
way is to acknowledge that cohesion can potentially have detrimental consequences. A good
first step in this regard would be to assess the team’s cohesion using a scale such as the one in
our OB Assessments feature. A high score on this sort of assessment indicates the team may be
vulnerable to groupthink. A second step in preventing problems associated with cohesion would
be to formally institute the role of devil’s advocate. The person filling this role would be respon-
sible for evaluating and challenging prevailing points of view in a constructive manner and also
bringing in fresh perspectives and ideas to the team. Although the devil’s advocate role could be
filled by an existing team member, it’s also possible that the team could bring in an outsider to
fill that role.
POTENCY The second team state, potency, refers to the degree to which members believe that
the team can be effective across a variety of situations and tasks.86 When a team has high potency,
members are confident that their team can perform well, and as a consequence, they focus more
of their energy on team tasks and teamwork in hopes of achieving team goals.87 When a team
has low potency, members are not as confident about their team, so they begin to question the
team’s goals and one another. Ultimately, this reaction can result in members focusing their
energies on activities that don’t benefit the team. In the end, research has shown that potency
has a strong positive impact on team performance.88 One obvious caveat here is that a team’s
confidence can be too high.89 In fact, a strong sense of confidence very early in a team’s exis-
tence can decrease the amount of beneficial discussions centered on different positions that are
relevant to a team.90 So how does high potency develop in teams? Team members’ confidence
in their own capabilities, their trust in other members’ capabilities, and feedback about past per-
formance are all likely to play a role.91 Specifically, team potency is promoted in teams in which
members are confident in themselves and their teammates and when the team has experienced
success in the past.
MENTAL MODELS Mental models refer to the level of common understanding among team
members with regard to important aspects of the team and its task.92 A team may have shared
mental models with respect to the capabilities that members bring to the team as well as the
FIGURE 12-5 Team States
Cohesion
Potency
Mental
Models
Transactive
Memory
Team
States
Final PDF to printer
391C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 391 10/17/17 11:36 AM
OB ASSESSMENTS
SCORING AND INTERPRETATION
If your scores sum up to 45 or above, you feel a strong bond to your team, suggesting that your
team may be cohesive. If your scores sum up to less than 45, you feel a weaker bond to your team,
suggesting that your team may not be cohesive.
Source: Items adapted from E. R. Crawford. “Team Network Multiplexity, Synergy and Performance.” Doctoral disserta-
tion. University of Florida, 2011.
COHESION
How cohesive is your team? This assessment is designed to measure cohesion—the strength of
the emotional bonds that develop among members of a team. Think of your current student proj-
ect team or an important team that you belong to in your job. Answer each question using the
response scale provided. Then subtract your answers to the boldfaced questions from 8, with the
difference being your new answers for those questions. For example, if your original answer for
question 6 was “5,” your new answer is “3” (8 – 5). Then sum up your answers for the eight ques-
tions. (Instructors: Assessments on task conflict, relationship conflict, potency, and transactive
memory can be found in the PowerPoints in the Connect Library’s Instructor Resources and in
the Connect assignments for this chapter.)
1
TO A VERY
SMALL
EXTENT
2
TO A SMALL
EXTENT
3
TO SOME
EXTENT
4
TO A
REGULAR
EXTENT
5
TO A GOOD
EXTENT
6
TO A GREAT
EXTENT
7
TO A VERY
GREAT
EXTENT
1. I interact with my teammates, either in person or virtually, to get work done. _______
2. My teammates make me feel positive, upbeat, and energized. I like them. _______
3. I trust my teammates. I can depend on them. _______
4. I dislike my teammates. They tend to annoy me. _______
5. I interact with my teammates socially and can confide in them about personal
matters. I consider them to be friends.
_______
6. I have difficult relationships with my teammates. Our personalities clash
and there’s tension.
_______
7. I have doubts about my teammates. I feel like I have to monitor them. _______
8. I enjoy working with my teammates. _______
processes the team needs to use to be effective.93 How can these two types of mental models
foster team effectiveness? When team members share in their understanding of one another’s
capabilities, they’re more likely to know where to go for the help they might need to complete
their work. In addition, they should be able to anticipate when another member needs help to do
his or her work. When members have a shared understanding of which processes are necessary
to help the team be effective, they can carry out these processes efficiently and smoothly. To
Final PDF to printer
392 C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 392 10/17/17 11:36 AM
help you understand why this is true, consider what would happen in a team of students who had
different understandings about how the team should manage conflict. Few disagreements would
get resolved if some of the members believed that direct confrontation was best, whereas others
believed that avoidance was best.
TRANSACTIVE MEMORY Whereas mental models refer to the degree to which the knowledge
is shared among members, transactive memory refers to how specialized knowledge is distributed
among members in a manner that results in an effective system of memory for the team.94 This
concept takes into account the idea that not everyone on a team has to possess the same knowl-
edge. Instead, team effectiveness requires that members understand when their own specialized
knowledge is relevant to the team and how their knowledge should be combined with the special-
ized knowledge of other members to accomplish team goals. This of course, requires that team
members not only possess useful specialized knowledge, but also meta-knowledge, or knowledge
of who knows what.95 If you’ve ever worked on a team that had effective transactive memory, you
may have noticed that work got done very efficiently.96 Everyone focused on his or her specialty
and what he or she did best, members knew exactly where to go to get information when there
were gaps in their knowledge, and the team produced synergistic results. Of course, transactive
memory can also be fragile because the memory system depends on each and every member.97
If someone is slow to respond to another member’s request for information or forgets something
important, the team’s system of memory fails. Alternatively, if a member of the team leaves, you
lose an important node in the memory system.
S U M M A RY: W H Y A R E S O M E T E A M S M O R E T H A N T H E S U M
O F T H E I R PA RTS ?
So what explains why some teams become more than the sum of their parts (whereas other teams
become less)? As shown in Figure 12-6, teams become more than the sum of their parts if their
team process achieves process gain rather than process loss. Teams can accomplish that goal by
engaging in activities involved in effective taskwork processes, teamwork processes, communica-
tion, and team states. Important taskwork processes include creative behavior, decision making,
and boundary spanning. Important teamwork processes include transition processes, action pro-
cesses, and interpersonal processes. Communication can be enhanced by ensuring that members
are competent communicators, noise is minimized, and appropriate levels of information richness
and network complexity are chosen. Team states refer to variables such as cohesion, potency, men-
tal models, and transactive memory. In contrast to the taskwork processes, teamwork processes,
and communication, team states offer less visible and observable reasons for why some teams
possess an effective synergy whereas others seem quite inefficient.
H O W I M P O R TA N T A R E T E A M P R O C E S S E S ?
Do team processes affect performance and commitment? Answering this question is somewhat
complicated for two reasons. First, as in Chapter 11 on team characteristics and diversity, when
we say “performance and commitment,” we are not referring to the performance of individuals or
their attachment to the organization. Instead, we are referring to the performance of teams and
the degree to which teams are capable of remaining together as ongoing entities. In the jargon
of research on teams, this form of commitment is termed “team viability.” Second, as we have
described throughout this chapter, there are several different types of team processes that we
could consider in our summary. In Figure 12-7, we characterize the relationship among team
processes, performance, and commitment by focusing specifically on research involving teamwork
processes. The figure therefore represents a summary of existing research on transition processes,
action processes, and interpersonal processes.
Research conducted in a wide variety of team settings has shown that teamwork processes
have a moderate positive relationship with team performance.98 This same moderate positive
12.5
How do team processes
affect team performance
and team commitment?
Final PDF to printer
393C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 393 10/17/17 11:36 AM
FIGURE 12-6 Why Are Some Teams More Than the Sum of Their Parts?
Action
Processes
Transition
Processes
Transition
Processes
Action
Processes
Interpersonal
Processes
Cohesion
Potency
Mental
Models
Transactive
Memory
Communicator
issues
Noise
Information
Richness
Network
Structure
Boundary
Spanning
Decision
Making
Creative
Behavior
Taskwork
Processes
Teamwork
Processes
Communication
Team
States
Process
Loss
Process
Gain
relationship appears to hold true, regardless of whether the research examines transition pro-
cesses, action processes, or interpersonal processes. Why might the relationships between these
different types of processes and team performance be so similarly positive? Apparently, effective-
ness with respect to a wide variety of interactions is needed to help teams achieve process gain
and, in turn, perform effectively. The interpersonal activities that prepare teams for future work
Final PDF to printer
394 C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 394 10/17/17 11:36 AM
FIGURE 12-7 Effects of Teamwork Processes on Performance and Commitment
Teamwork processes have a moderate positive e�ect on Team Performance. That
aspect of team process has a stronger e�ect on performance for teams involved in
more complex knowledge work rather than less complex work.
Teamwork processes have a strong positive e�ect on Team Commitment. That aspect
of team process has a stronger e�ect on commitment for teams involved in more
complex knowledge work rather than less complex work.
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
Teamwork
Processes
Teamwork
Processes
Team
Performance
Team
Commitment
Source: J.A. LePine, R.F. Piccolo, C.L. Jackson, J.E. Mathieu, and J.R. Saul, “A Meta-Analysis of Team Process: Towards
a Better Understanding of the Dimensional Structure and Relationships with Team Effectiveness Criteria,” Personnel
Psychology 61 (2008), pp. 356–76.
appear to be just as important as those that help members integrate their taskwork and those that
build team confidence and a positive team climate. Researchers have also found that the impor-
tance of team processes to team performance may be more strongly positive in teams in which
there are higher levels of interdependence and complexity.99 This relationship can be explained
quite easily: Activities that are meant to improve the integration of team members’ work are sim-
ply more important in team contexts in which the work of team members needs to be integrated.
Research also indicates that teamwork processes have a strong positive relationship with
team commitment.100 In other words, teams that engage in effective teamwork processes tend
to continue to exist together into the future. Why should teamwork and team commitment
be so strongly related? One reason is that people tend to be satisfied in teams in which there
are effective interpersonal interac-
tions, and as a consequence, they
go out of their way to do things
that they believe will help the team
stick together. Think about a team
situation that you’ve been in when
everyone shared the same goals for
the team, work was coordinated
smoothly, and everyone was posi-
tive, pleasant to be around, and will-
ing to do a fair share of the work.
If you’ve ever actually been in a
situation like this—and we hope that
you have—chances are that you did
your best to make sure the team
The Orpheus Chamber
Orchestra has been able
to perform effectively over
the past 35 years because
of extraordinary levels of
teamwork and commit-
ment. While all members
of the orchestra help refine
the interpretation and
execution of each work
in its repertoire, they also
select a concertmaster and
principal players to lead
each piece.
©Chester Higgins Jr./New York Times/Redux Pictures
Final PDF to printer
395C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 395 10/17/17 11:36 AM
could continue on together. It’s likely that you worked extra hard to make sure that the team
achieved its goals. It’s also likely that you expressed positive sentiments about the team and your
desire for the team to remain together. Of course, just the opposite would be true in a team con-
text in which members had different goals for the team, coordination was difficult and filled with
emotional conflict, and everyone was pessimistic and disagreeable. Members of a team like this
would not only find the situation dissatisfying, but would also make it known that they would be
very open to a change of scenery.
A P P L I C AT I O N : T R A I N I N G T E A M S
Team-based organizations invest a significant amount of resources into training that’s intended
to improve team processes. These types of investments seem to be a smart thing to do, given
that team processes have a positive impact on both team performance and team commitment.
In this section, we review several different approaches that organizations use to train team
processes.
T R A N S P O RTA B L E T E A M WO R K C O M P E T E N C I E S
One approach to training teams is to help individual team members develop general competen-
cies related to teamwork activities. Table 12-2 shows that this type of training could involve many
12.6
What steps can organiza-
tions take to improve team
processes?
TABLE 12-2 Teamwork Knowledge, Skills, and Abilities
COMPETENCY DESCRIPTION
Conflict resolution • Can distinguish between desirable and undesirable conflict.
• Encourages desirable conflict and discourages undesirable
conflict.
• Uses win–win strategies to manage conflict.
Collaborative problem
solving
• Can identify situations requiring participative problem solving.
• Uses the appropriate degree of participation.
• Recognizes and manages obstacles to collaborative problem
solving.
Communications • Understands communication networks.
• Communicates openly and supportively.
• Listens without making premature evaluations.
• Uses active listening techniques.
• Can interpret nonverbal messages of others.
• Engages in ritual greetings and small talk.
Goal setting and performance
management
• Helps establish specific and difficult goals for the team.
• Monitors, evaluates, and provides performance-related
feedback.
Planning and task
coordination
• Coordinates and synchronizes activities among team
members.
• Establishes expectations to ensure proper balance of work-
load within the team.
Source: Adapted from M.J. Stevens and M.A. Campion, “The Knowledge, Skill, and Ability Requirements for Teamwork:
Implications for Human Resource Management,” Journal of Management 20 (1994), pp. 503–30.
Final PDF to printer
396 C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 396 10/17/17 11:36 AM
different forms of knowledge, skills, and abilities.101 Taken together, such knowledge, skills, and
abilities are referred to as transportable teamwork competencies.102 This label reflects the fact
that trainees can transport what they learn about teamwork from one team context and apply
it in another. As a specific example of how this type of training might work, consider a recent
study of teamwork training for naval aviators in an advanced pilot training program.103 In this
study, one group of pilots went through two days of training, during which they received instruc-
tion on preferred communication practices, communicating suggestions and asking questions,
and communicating about potential problems. The pilots who went through the training believed
that in addition to building teamwork knowledge and skills, the training would increase their
mission effectiveness and flight safety. Moreover, crews that were composed of pilots who went
through the training were significantly more effective than crews composed of pilots who did not
go through the training. Effectiveness was judged by performance in dangerous scenarios, such
as ice buildup on the aircraft wings and instructions from the air traffic control tower that were
conflicting or ambiguous.
C R O S S -T R A I N I N G
A second type of team training involves training members in the duties and responsibilities of
their teammates. The idea behind this type of training, which is called cross-training,104 is that
team members can develop shared mental models of what’s involved in each of the roles in the
team and how the roles fit together to form a system.105 What exactly does cross-training involve?
Researchers have found that cross-training may involve instruction at three different levels of
depth.106 At the shallowest level, there is personal clarification. With this type of training, mem-
bers simply receive information regarding the roles of the other team members. As an example,
the highly specialized members of surgical teams—surgeons, anesthesiologists, operating room
nurses—might meet so that they can learn about others’ roles and how each contributes to the
team’s goal of achieving overall patient well-being.
At the next level of cross-training, there is positional modeling, which involves team members
observing how other members perform their roles. In the case of the surgical teams, the surgeons
might spend a day shadowing operating room nurses as they perform their duties. The shadowing
not only helps the surgeons gain a better understanding of what the job of a nurse entails but also
may provide insight into how the activities involved in their respective jobs could be integrated
more effectively.
Finally, the deepest level of cross-training involves positional rotation. This type of training
gives members actual experience carrying out the responsibilities of their teammates. Although
this type of hands-on experience could expand skills of members so that they might actually per-
form the duties of their teammates if they had to, the level of training required to achieve profi-
ciency or certification in many situations may be prohibitive. For example, because it takes years
of specialized training to become a surgeon, it would be impractical to train an operating room
nurse to perform this job for the purposes of positional rotation.
T E A M P R O C E S S T R A I N I N G
Cross-training and training in transportable teamwork competencies focus on individual experi-
ences that promote individual learning. Team process training, in contrast, occurs in the context
of a team experience that facilitates the team being able to function and perform more effec-
tively as an intact unit. One type of team process training is called action learning. With this
type of training, which has been used successfully at companies such as Motorola and General
Electric, a team is given a real problem that’s relevant to the organization and then held account-
able for analyzing the problem, developing an action plan, and finally carrying out the action
plan.107 How does this type of experience develop effective team processes? First, the team
receives coaching to help facilitate more effective processes during different phases of the proj-
ect. Second, there are meetings during which team members are encouraged to reflect on the
Final PDF to printer
397C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 397 10/17/17 11:36 AM
team processes they’ve used as they worked on the project. In these meetings, the members dis-
cuss not only what they observed and learned from their experiences but also what they would
do differently in the future.
A second type of team process training involves experience in a team context when there are
task demands that highlight the importance of effective teamwork processes. As an example,
United Airlines uses pit crew training for its ramp crews.108 Although teams of ramp workers at an
airline like United must work with luggage, belt loaders, and baggage carts, there are parallels with
the work of NASCAR pit crews that work with tires, jacks, and air guns. Primarily, effective per-
formance in both contexts means performing work safely within tight time constraints. Moreover,
in both of these contexts, achieving goals requires teamwork, communication, and strict adher-
ence to standardized team procedures. The real value of the pit crew training to the ramp crews
is that it conveys the lessons of teamwork in a very vivid way. If a team fails to follow procedures
and work together when trying to change tires, tools will be misplaced, parts will be dropped, and
members will get in one another’s way. As a consequence, a pit stop may last for minutes rather
than seconds.
T E A M B U I L D I N G
The fourth general type of team process training is called team building. This type of training
normally is conducted by a consultant and intended to facilitate the development of team pro-
cesses related to goal setting, interpersonal relations, problem solving, and role clarification.109
The ropes course is a very popular task used in team building. It requires team members to work
together to traverse wooden beams, ropes, and zip lines while dangling in a harness 20–50 feet in
the air. Other examples include laser tag, paintball,110 WhirlyBall (think lacrosse played in bumper
cars with a whiffle ball and plastic scoops),111 whitewater rafting, scavenger hunts, and beating
drums in a drum circle.112 Team-building activities such as these are hugely popular with organiza-
tions of all sizes, and they do seem like an awful lot of fun.
But can you really build effective teams by having them participate in enjoyable activities that
seem so unrelated to their jobs? In fact, this was the basis for Senators Byron Dorgan and Ron
Wyden’s request that the inspector general of the U.S. Postal Service be fired.113 In their letter to
the chairman of the Post Office Board of Governors, they wrote that the inspector general “has
spent millions of agency dollars on expensive and silly ‘team building’ exercises, diverting massive
resources from the task of finding waste and improving efficiency. . . . On tapes, you see images of
public servants dressed up as the Village People, wearing cat costumes, doing a striptease, and par-
ticipating in mock trials—all on official time, all at the public’s expense.”114 Although it’s somewhat
difficult to gauge the effectiveness of team-building interventions because so many different types of
exercises have been used, research has been conducted that provides mixed support for the senators’
claim. The findings of one meta-analysis found that team building did not have a significant effect on
team performance when per-
formance was defined in terms
of productivity.115 However, the
research found that team build-
ing is most likely to have posi-
tive effects for smaller teams
and when the exercise empha-
sizes the importance of clari-
fying role responsibilities. The
facilitator of the team-building
session also needs to be com-
petent in helping members see
the connections between the
exercise and their work, and
also to ensure inclusion and
participation of all members.116
Ropes courses are enjoy-
able to participants and
provide a unique oppor-
tunity for team members
to get to know each other.
But can they really build
effective teams?
©Shari Vialpando/Las Cruces Sun-News/AP Images
Final PDF to printer
398 C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 398 10/17/17 11:36 AM
K E Y T E R M S
• Team process p. 376
• Process gain p. 376
• Process loss p. 376
• Coordination loss p. 376
• Production blocking p. 377
• Motivational loss p. 377
• Social loafing p. 378
• Taskwork processes p. 378
• Brainstorming p. 378
• Nominal group technique p. 379
• Decision informity p. 381
• Staff validity p. 381
• Hierarchical sensitivity p. 381
• Boundary spanning p. 381
• Ambassador activities p. 381
• Task coordinator activities p. 382
• Scout activities p. 382
• Teamwork processes p. 384
• Transition processes p. 384
• Action processes p. 384
• Interpersonal processes p. 385
• Relationship conflict p. 385
• Task conflict p. 385
• Communication p. 386
• Information richness p. 387
• Network structure p. 388
• Team states p. 389
• Cohesion p. 389
• Groupthink p. 389
• Potency p. 390
• Mental models p. 390
• Transactive memory p. 392
• Transportable teamwork
competencies p. 396
• Cross-training p. 396
• Personal clarification p. 396
• Positional modeling p. 396
• Positional rotation p. 396
• Team process training p. 396
• Action learning p. 396
• Team building p. 397
12.1 Taskwork processes are the activities of team members that relate directly to the accom-
plishment of team tasks. Taskwork processes include creative behavior, decision making,
and boundary spanning.
12.2 Teamwork processes refer to the interpersonal activities that facilitate the
accomplishment of the team’s work but do not directly involve task accomplishment
itself. Teamwork processes include transition processes, action processes, and interper-
sonal processes.
12.3 Communication is a process through which much of the work in a team is accomplished.
Effectiveness in communication can be influenced by the communication competence of
the sender and receiver, noise, information richness, and network structure.
12.4 Team states refer to specific types of feelings and thoughts that coalesce in the minds of
team members as a consequence of their experience working together. Team states include
cohesion, potency, mental models, and transactive memory.
12.5 Teamwork processes have a moderate positive relationship with team performance and a
strong positive relationship with team commitment.
12.6 Organizations can use training interventions to improve team processes. Such interven-
tions may include training in transportable teamwork competencies, cross-training, team
process training, and team building.
TA K E AWAY S
Final PDF to printer
399C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 399 10/17/17 11:36 AM
12.1 Before reading this chapter, how did you define teamwork? How did this definition cor-
respond to the definition outlined in this book?
12.2 Think of a team you’ve worked in that performed poorly. Were any of the causes of the
poor performance related to the forces that tend to create process loss? If so, which force
was most problematic? What steps, if any, did your team take to deal with the problem?
12.3 Think about the team states described in this chapter. If you joined a new team, how long
do you think it would take you to get a feel for those team states? Which states would you
be able to gauge first? Which would take longer?
12.4 Describe the communication process in a student team of which you’ve been a member.
Were there examples of “noise” that detracted from the team members’ ability to com-
municate with one another? What was the primary mode of communication among
members? Did this mode of communication possess an appropriate level of information
richness? Which network structure comes closest to describing the one that the team used
to communicate? Was the level of centralization appropriate?
12.5 Which types of teamwork training would your student team benefit most from? What
exactly would this training cover? What specific benefits would you expect? What would
prevent a team from training itself on this material?
D I S C U S S I O N Q U E S T I O N S
In 2013, Microsoft recognized that the company would have to make some fundamental changes
to compete in an industry that rewards fast-paced innovation. At the time, there were several
product groups at Microsoft that not only operated in silos, but also viewed each other as
competitors for resources and bonuses. An engineer on a product team in one division might
discover something that could be useful in another division’s product, but there was no incentive
for the engineer to share what was learned with the other product team. To address this problem,
and to promote teamwork across the organization, Microsoft replaced the product groups with
four broad divisions based on functions that absolutely need to collaborate to get anything done.
For example, a team responsible for developing a new Xbox would now likely include engineers
from the devices and studio engineering division, the operating systems division, the applications
division, and the cloud division.
To support Microsoft’s new structure and emphasis on teamwork, the company redesigned
two buildings at corporate headquarters. The corridors and private offices that once filled these
buildings were completely torn out. Now the buildings are filled with large open shared rooms
called neighborhoods, which teams can customize using stipends provided by the company.
There are smaller “focus” rooms and cozy alcoves that employees can use when privacy is
needed, but there are no private offices. The buildings are light and airy, and are decorated
with art and interesting objects that encourage employees to walk around and to meet and com-
municate. Rather than e-mailing, employees are encouraged to engage with each other in person
and to connect in ways that are more spontaneous and rich. Employees who may have never met
face-to-face may run into each other at one of the coffee bars and discover they’re working on
similar projects.
Of course, the redesigned buildings may present the company and its employees with certain
challenges. For example, some employees likely have a strong preference for privacy, or may be
bothered by the distractions and interruptions from teammates. As another example, limited
private space may make it less likely that employees speak up and challenge others on the team
for fear that conflict will be exposed. Finally, because employees play an important role in the
C A S E : M I C R O S O F T
Final PDF to printer
400 C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 400 10/17/17 11:36 AM
E X E R C I S E : W I L D E R N E S S S U R V I VA L
The purpose of this exercise is to experience team processes during a decision-making task. This
exercise uses groups, so your instructor will either assign you to a group or ask you to create your
own group. The exercise has the following steps:
12.1 Working individually, read the following scenario:
You have gone on a Boundary Waters canoe trip with five friends to upper Minnesota and
southern Ontario in the Quetico Provincial Park. Your group has been traveling Sagana-
gons Lake to Kawnipi Lake, following through Canyon Falls and Kennebas Falls and Kenny
Lake. Fifteen to 18 miles away is the closest road, which is arrived at by paddling through
lakes and rivers and usually portaging (taking the land path) around numerous falls. Sagana-
gons Lake is impossible to cross in bad weather, generally because of heavy rain. The nearest
town is Grand Marais, Minnesota, 60 miles away. That town has plenty of camping outfit-
ters but limited medical help, so residents rely on hospitals farther to the south.
The terrain is about 70 percent land and 30 percent water, with small patches of land
here and there in between the lakes and rivers. Bears are not uncommon in this region. It’s
now mid-May, when the (daytime) temperature ranges from about 25°F to 70°F, often in the
same day. Nighttime temperatures can be in the 20s. Rain is frequent during the day (nights,
too) and can be life threatening if the temperature is cold. It’s unusual for the weather to stay
the same for more than a day or two. Generally, it will rain one day and be warm and clear
the next, with a third day windy—and it’s not easy to predict what type of weather will come
next. In fact, it may be clear and warm, rainy and windy, all in the same day.
Your group was in two canoes going down the river and came to some rapids. Rather
than taking the portage route on land, the group foolishly decided to shoot the rapids by
canoe. Unfortunately, everyone fell out of the canoes, and some were banged against the
rocks. Luckily, no one was killed, but one person suffered a broken leg, and several others
had cuts and bruises. Both canoes were damaged severely. Both were bent in half, one with
an open tear of 18 inches, while the other suffered two tears of 12 and 15 inches long. Both
have broken gunwales (the upper edges on both sides). You lost the packs that held the
tent, most clothing, nearly all the food, cooking equipment, the fuel, the first aid kit, and
the flashlight. Your combined possessions include the items shown in the following table.
You had permits to take this trip, but no one knows for sure where you are, and the closest
phone is in Grand Marais. You were scheduled back four days from now, so it’s likely a search
party would be sent out in about five days (because you could have been delayed a day or so in get-
ting back). Just now it has started to drizzle, and it looks like rain will follow. Your task is to figure
out how to survive in these unpredictable and possibly harsh conditions until you can get help.
12.2 Working individually, consider how important each of the items in the table would be to
you in this situation. Begin with the most important item, giving it a rank of “1,” and wind
up with the least important item, giving it a rank of “14.” Put your rankings in Column B.
design and development of their neighborhoods, they may not be as open to changing teams as
projects evolve and the needs of the company change.
12.1 Describe how the building redesign is likely to influence process gain and process loss in
the teams at Microsoft.
12.2 Describe how the changes at Microsoft have likely influenced team states.
12.3 What are the advantages and disadvantages of the building redesign with respect to com-
munication? What can be done to mitigate potential disadvantages?
Sources: T. Halvorson, K. Eichenwald. “Microsoft’s Lost Decade,” Vanity Fair, July 24, 2012, http://www.vanityfair.com/
news/business/2012/08/microsoft-lost-mojo-steve-ballmer; J. Warnick, “Productivity by Design,” Microsoft/Story Labs,
https://news.microsoft.com/stories/b16/; and T. Warren, “Microsoft Axes its Controversial Employee-Ranking System,” The
Verge, November 12, 2013, http://www.theverge.com/2013/11/12/5094864/microsoft-kills-stack-ranking-internal-structure.
Final PDF to printer
401C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 401 10/17/17 11:36 AM
12.3 In your groups, come to a consensus about the ranking of the items. Put those consen-
sus rankings in Column C. Group members should not merely vote or average rankings
together. Instead, try to get everyone to more or less agree on the rankings. When someone
disagrees, try to listen carefully. When someone feels strongly, that person should attempt
to use persuasive techniques to create a consensus.
12.4 The instructor will post the correct answers and provide the reasons for those rankings,
according to two experts (Jeff Stemmerman and Ken Gieske of REI Outfitters, both of
whom act as guides for many canoe trips in the Boundary Waters region). Put those expert
rankings in Column D. At this point, the Individual Error scores in Column A can be
computed by taking the absolute difference between Column B and Column D. The Group
Error scores in Column E can also be computed by taking the absolute difference between
Column C and Column D. Finally, the Persuasion scores can be computed by taking the
absolute difference between Column B and Column C. Remember that all of the differ-
ences are absolute differences—there should not be any negative numbers in the table. After
completing all these computations, fill in the three scores below the table: the Individual
Score (total of Column A), the Group Score (total of Column E), and the Persuasion Score
(total of Column F). The Persuasion score measures how much you are able to influence
other group members to match your thinking.
12.5 The instructor will create a table similar to the one that follows in an Excel file in the class-
room or on the board. All groups should provide the instructor with their Average Member
Score (the average of all of the Individual Scores for the group), the Group Score, their Best
Member Score (the lowest of all the Individual Scores for the group), and that member’s Per-
suasion Score (the Persuasion Score for the member who had the lowest Individual Score).
A B C D E F
INDIVIDUAL
ERROR (B–D)
YOUR
RANKING
GROUP
RANKING
EXPERT
RANKING
GROUP
ERROR (C–D)
PERSUASION
SCORE (B–C)
Fanny pack of food (cheese, salami, etc.)
Plastic-covered map of the region
Six personal flotation devices
Two fishing poles (broken)
Set of clothes for three (wet)
One yellow Frisbee
Water purification tablets
Duct tape (one 30-ft roll)
Whiskey (one pint, 180 proof)
Insect repellant (one bottle)
Matches (30, dry)
Parachute cord (35 ft)
Compass
Six sleeping bags (synthetic)
Individual Score: (Total all numbers in Column A): _______
Group Score: (Total all numbers in Column E): _______
Persuasion Score: (Total all numbers in Column F): _______
Final PDF to printer
402 C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 402 10/17/17 11:36 AM
12.1 Ilgen, D.R.; D.A.
Major; J.R. Hol-
lenbeck; and D.J.
Sego. “Team Research
in the 1990s.” In
Leadership Theory and
Research: Perspectives
and Directions, ed.
M.M. Chemers and
R. Ayman. New York:
Academic Press, 1993,
pp. 245–70.
12.2 “Process.” Merriam-
Webster online diction-
ary (n.d.), http://www
.merriam-webster.com/
dictionary/process.
12.3 Bellman, G., and K.
Ryan. “Creating an
Extraordinary Group.”
T&D (September
2010), pp. 56–61.
12.4 Hackman, J.R. “The
Design of Work
Teams.” In Handbook
of Organizational
Behavior, ed. J.W.
Lorsch. Englewood
Cliffs, NJ: Prentice
Hall, 1987, pp. 315–42.
12.5 Steiner, I.D. Group
Processes and Pro-
ductivity. New York:
Academic Press, 1972.
12.6 Hackman, “The Design
of Work Teams.”
12.7 Lamm, H., and G.
Trommsdorff. “Group
versus Individual
Performance on Tasks
Requiring Ideational
Proficiency (Brain-
storming).” European
Journal of Social
Psychology 3 (1973),
pp. 361–87.
12.8 Hackman, “The Design
of Work Teams.”
12.9 Latane, B.; K. Williams;
and S. Harkins. “Many
E N D N OT E S
12.6 Fill in a “Yes” for the Process Gain row if the Group Score was lower than the Average
Member Score. This score would reflect a circumstance in which the group discussion
actually resulted in more accurate decisions—when “the whole” seemed to be more effective
than “the sum of its parts.” Fill in a “No” for the Process Gain row if the Group Score was
higher than the Average Member Score. In this circumstance, the group discussion actually
resulted in less accurate decisions—and the group would have been better off if no talking
had occurred.
GROUPS 1 2 3 4 5 6 7 8
Average Member Score
Group Score
Best Member Score
Best Member’s Persuasion
Process Gain? (Yes or No)
12.7 Class discussion (whether in groups or as a class) should center on the following questions:
Did most groups tend to achieve process gain in terms of group scores that were better than
the average individual scores? Were the group scores usually better than the best member’s
score? Why not; where did the groups that lacked synergy tend to go wrong? In other
words, what behaviors led to process loss rather than process gain? What role does the best
member’s persuasion score play in all of this? Did groups that tended to listen more to the
best member (as reflected in lower persuasion numbers) have more frequent instances of
process gain?
Source: D. Marcic, J. Selzer, and P. Vail. Organizational Behavior: Experiences and Cases. Cincinnati, OH: South-Western,
2001.
Final PDF to printer
403C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 403 10/17/17 11:36 AM
Hands Make Light
the Work: The Causes
and Consequences of
Social Loafing.” Jour-
nal of Personality and
Social Psychology 37
(1979), pp. 822–32.
12.10 Ibid.; Jackson, C.L.,
and J.A. LePine. “Peer
Responses to a Team’s
Weakest Link: A Test
and Extension of
LePine and Van
Dyne’s Model.”
Journal of Applied
Psychology 88 (2003),
pp. 459–75; and Shep-
pard, A. “Productivity
Loss in Performance
Groups: A Motivation
Analysis.” Psycho-
logical Bulletin 113
(1993), pp. 67–81.
12.11 Shalley, C.E.; J. Zhou;
and G.R. Oldham.
“The Effects of Per-
sonal and Contextual
Characteristics on
Creativity: Where
Should We Go from
Here?” Journal of
Management 30
(2004), pp. 933–58.
12.12 Miron-Spektor, E.;
M. Erez; and E.
Naveh. “The Effect
of Conformist and
Attentive-to-Detail
Members on Team
Innovation: Reconcil-
ing the Innovation
Paradox.” Academy
of Management Jour-
nal 54 (2011),
pp. 740–60.
12.13 Hirst, G.; D. van
Knippenberg; and
J. Zhou. “A Cross-
Level Perspective on
Employee Creativity:
Goal Orientation,
Team Learning Behav-
ior, and Individual
Creativity.” Academy
of Management Jour-
nal 52 (2009),
pp. 280–93.
12.14 Kelley, T., and J.
Littman. The Art of
Innovation. New York:
Doubleday, 2001,
p. 69.
12.15 Ben-Menahem, S.M.;
G. Von Krogh; Z.
Erden; and A. Schnei-
der. “Coordinating
Knowledge Creation
in Multidisciplinary
Teams: Evidence from
Early-Stage Drug Dis-
covery.” Academy of
Management Journal
59 (2016),
pp. 2308–38.
12.16 Osborn, A.F. Applied
Imagination (revised
ed.). New York:
Scribner, 1957.
12.17 Ibid.
12.18 Diehl, M., and W.
Stroebe. “Productivity
Loss in Brainstorming
Groups: Toward a
Solution of a Riddle.”
Journal of Personality
and Social Psychol-
ogy 53 (1987), pp.
497–509; and Mullen,
B.; C. Johnson; and
E. Salas. “Productivity
Loss in Brainstorming
Groups: A Meta-
Analytic Investiga-
tion.” Basic and Applied
Social Psychology 12
(1991), pp. 3–23.
12.19 Diehl and Stroebe,
“Productivity Loss.”
12.20 Sutton, R.I., and A.
Hargadon. “Brain-
storming Groups in
Context: Effectiveness
in a Product Design
Firm.” Administrative
Science Quarterly 41
(1996), pp. 685–718.
12.21 Kelley and Littman,
The Art of Innovation.
12.22 Delbecq, A.L., and
A.H. Van de Ven. “A
Group Process Model
for Identification and
Program Planning.”
Journal of Applied
Behavioral Sciences 7
(1971), pp. 466–92;
and Geschka, H.;
G.R. Schaude; and H.
Schlicksupp. “Modern
Techniques for Solving
Problems.” Chemical
Engineering, August
1973, pp. 91–97.
12.23 Grand, J.A.; M.T.
Braun; G. Kuljanin;
S.W. J. Kozlowski;
and G.T. Chao.
“The Dynamics of
Team Cognition: A
Process-Oriented
Theory of Knowledge
Emergence in Teams.”
Journal of Applied
Psychology 101 (2016),
pp. 1353–85.
12.24 Bornstein, B.H., and
E. Greene. “Jury
Decision Making:
Implications for and
from Psychology.”
Current Directions in
Psychological Science
20 (2011), pp. 63–67.
12.25 Ibid.
12.26 Salerno, J., and S.
Diamond. “The
Promise of a Cogni-
tive Perspective on
Jury Deliberation.”
Psychonomic Bulletin
& Review 17 (2010),
pp. 174–79.
12.27 Lieberman, J.D. “The
Utility of Scientific
Jury Selection: Still
Final PDF to printer
404 C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 404 10/17/17 11:36 AM
Murky after 30 Years.”
Current Directions in
Psychological Science
20 (2011), pp. 48–52.
12.28 Brehmer, B., and R.
Hagafors. “Use of
Experts in Complex
Decision Making:
A Paradigm for
the Study of Staff
Work.” Organizational
Behavior and Human
Decision Processes
38 (1986), pp.
181–95; and Ilgen,
D.R.; D. Major; J.R.
Hollenbeck; and D.
Sego. “Raising an
Individual Decision
Making Model to the
Team Level: A New
Research Model and
Paradigm.” In Team
Effectiveness and
Decision Making in
Organizations, ed. R.
Guzzo and E. Salas.
San Francisco: Jossey-
Bass, 1995,
pp. 113–48.
12.29 Hollenbeck, J.R.;
A.P.J. Ellis; S.E.
Humphrey; A.S.
Garza; and D.R. Ilgen.
“Asymmetry in Struc-
tural Adaptation: The
Differential Impact
of Centralizing versus
Decentralizing Team
Decision-Making
Structures.” Orga-
nizational Behavior
and Human Decision
Processes 114 (2011),
pp. 64–74.
12.30 Hollenbeck, J.R.; J.A.
Colquitt; D.R. Ilgen;
J.A. LePine; and J.
Hedlund. “Accuracy
Decomposition
and Team Decision
Making: Testing
Theoretical Boundary
Conditions.” Journal
of Applied Psychol-
ogy 83 (1998), pp.
494–500; and Hollen-
beck, J.R.; D.R. Ilgen;
D.J. Sego; J. Hedlund;
D.A. Major; and J.
Phillips. “Multilevel
Theory of Team Deci-
sion Making; Decision
Performance in Teams
Incorporating Dis-
tributed Expertise.”
Journal of Applied
Psychology 80 (1995),
pp. 292–316.
12.31 Humphrey, S.E.; J.R.
Hollenbeck; C.J.
Meyer; and D.R.
Ilgen. “Hierarchi-
cal Team Decision
Making.” Research in
Personnel and Human
Resources Manage-
ment 21 (2002), pp.
175–213.
12.32 Hollenbeck et al.,
“Multilevel Theory of
Team Decision Mak-
ing”; and Hollenbeck,
J.R.; D.R. Ilgen; J.A.
LePine; J.A. Colquitt;
and J. Hedlund.
“Extending the Multi-
level Theory of Team
Decision Making:
Effects of Feedback
and Experience in
Hierarchical Teams.”
Academy of Manage-
ment Journal 41
(1998), pp. 269–82.
12.33 Hollenbeck et al.,
“Extending the Multi-
level Theory.”
12.34 Hedlund, J.; D.R.
Ilgen; and J.R. Hol-
lenbeck. “Decision
Accuracy in Computer-
Mediated vs. Face-
to-Face Decision
Making Teams.” Orga-
nizational Behavior
and Human Decision
Processes 76 (1998),
pp. 30–47.
12.35 Ilgen, D.R.; J.A.
LePine; and J.R. Hol-
lenbeck. “Effective
Decision Making in
Multinational Teams.”
In New Perspectives in
International Industrial–
Organizational Psychol-
ogy, ed. P.C. Earley
and M. Erez. San
Francisco:
Jossey-Bass, 1997,
pp. 377–409.
12.36 Ancona, D.G. “Out-
ward Bound: Strate-
gies for Team Survival
in an Organization.”
Academy of Manage-
ment Journal 33
(1990), pp. 334–65.
12.37 Ibid.; and Marrone,
J.A.; P.E. Tesluk;
and J.B. Carson. “A
Multilevel Investiga-
tion of Antecedents
and Consequences
of Team Member
Boundary-Spanning
Behavior.” Academy
of Management
Journal 50 (2007),
pp. 1423–39.
12.38 De Vries, T.A.; F.
Walter; G.S. Van Der
Vegt; and P.J.M.D.
Essens. “Antecedents
of Individuals’ Inter-
team Coordination:
Broad Functional
Experiences as a
Mixed Blessing.”
Academy of Manage-
ment Journal 57
(2014), pp. 1334–59.
12.39 LePine, J.A.; R.F.
Piccolo; C.L. Jackson;
J.E. Mathieu; and J.R.
Saul. “A Meta-Analysis
of Team Process:
Final PDF to printer
405C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 405 10/17/17 11:36 AM
Toward a Better
Understanding of the
Dimensional Struc-
ture and Relationships
with Team Effective-
ness Criteria.” Person-
nel Psychology 61
(2008), pp. 273–307;
and Marks, M.A.; J.E.
Mathieu; and S.J. Zac-
caro. “A Temporally
Based Framework and
Taxonomy of Team
Processes.” Academy
of Management
Review 26 (2001),
pp. 356–76.
12.40 Marks et al., “A Tem-
porally Based Frame-
work.” This section on
teamwork processes is
based largely on their
work.
12.41 Fisher, D.M. “Dis-
tinguishing between
Taskwork and
Teamwork Planning
in Teams: Relations
with Coordination
and Interpersonal
Processes.” Journal of
Applied Psychology 99
(2014), pp. 423–36.
12.42 Eddy, E.R.; S.I
Tannenbaum;
and J.E. Mathieu.
“Helping Teams to
Help Themselves:
Comparing Two
Team-Led Debriefing
Methods.” Personnel
Psychology 66 (2013),
pp. 975–1008; and
Villado, A.J., and W.
Arthur Jr. “The Com-
parative Effect of Sub-
jective and Objective
After-Action Reviews
on Team Performance
on a Complex Task.”
Journal of Applied
Psychology 98 (2013),
pp. 514–28.
12.43 Barnes, C.M.; J.R.
Hollenbeck; D.T. Wag-
ner; D.S. DeRue; J.D.
Nahrgang; and K.M.
Schwind. “Harmful
Help: The Costs of
Backing-Up Behavior
in Teams.” Journal of
Applied Psychology 93
(2008), pp. 529–39;
and Hu, J., and R.C.
Liden. “Making a Dif-
ference in the Team-
work: Linking Team
Prosocial Motivation
to Team Processes and
Effectiveness.” Acad-
emy of Management
Journal 58 (2015),
pp. 1102–27.
12.44 Kozlowski, S.W.J.,
and B.S. Bell. “Work
Groups and Teams
in Organizations.” In
Handbook of Psychol-
ogy, Vol. 12: Industrial
and Organizational
Psychology, ed. W.C.
Borman; D.R. Ilgen;
and R.J. Klimoski;
Hoboken, NJ: Wiley
2003, pp. 333–75.
12.45 Behfar, K.J.; R.S.
Peterson; E.A. Man-
nix; and W.M.K.
Trochim. “The Criti-
cal Role of Conflict
Resolution in Teams:
A Close Look at
the Links between
Conflict Type, Con-
flict Management
Strategies, and Team
Outcomes.” Journal of
Applied Psychology 93
(2008), pp. 170–88;
and De Dreu, C.K.W.,
and L.R. Weingart.
“Task versus Rela-
tionship Conflict,
Team Performance,
and Team Member
Satisfaction: A Meta-
Analysis.” Journal of
Applied Psychology 88
(2003), pp. 741–49.
12.46 Jehn, K. “A Multi-
method Examination
of the Benefits
and Detriments of
Intergroup Conflict.”
Administrative Science
Quarterly 40 (1995),
pp. 256–82.
12.47 De Dreu and Wein-
gart, “Task Versus
Relationship Con-
flict”; and DeChurch,
L.A., J.R. Mesmer-
Magnus, and D. Doty.
“Moving Beyond
Relationship and Task
Conflict: Toward a
Process-State Per-
spective.” Journal of
Applied Psychology 98
(2013), pp. 559–78.
12.48 de Wit, F.R.C.; J.L.
Greer; and K.A. Jehn.
“The Paradox of
Intragroup Conflict:
A Meta-Analysis.”
Journal of Applied
Psychology 97 (2012),
pp. 360–90.
12.49 Bradley, B.H.; A.C.
Klotz; B.E. Postle-
thwaite; and K.G.
Brown. “Ready to
Rumble: How Team
Personality Composi-
tion and Task Conflict
Interact to Improve
Performance.” Journal
of Applied Psychology
98 (2013),
pp. 385–92.
12.50 Sinha, R.; N.S. Janard-
hanan; L.L. Greer;
D.E. Conlon; and J.R.
Edwards. “Skewed
Task Conflicts in
Teams: What Happens
When a Few Members
See More Conflict
Than the Rest?”
Final PDF to printer
406 C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 406 10/17/17 11:36 AM
Journal of Applied
Psychology 101 (2016),
pp. 1045–55.
12.51 Thompson, L.L. Mak-
ing the Team: A Guide
for Managers, 2nd ed.
Upper Saddle River,
NJ: Pearson Prentice
Hall, 2004.
12.52 DeChurch, L.A., and
M.A. Marks. “Maxi-
mizing the Benefits
of Task Conflict:
The Role of Conflict
Management.” The
International Journal
of Conflict Manage-
ment 12 (2001), pp.
4–22; De Dreu and
Weingart, “Task
Versus Relationship
Conflict”; Van de
Vliert, E., and M.C.
Euwema. “Agreeable-
ness and Activeness
as Components of
Conflict Behaviors.”
Journal of Personality
and Social Psychol-
ogy 66 (1994), pp.
674–87; and Todorova,
G.; J. B. Bear; and
J.R. Weingart. “Can
Conflict Be Energiz-
ing? A Study of Task
Conflict, Positive
Emotions, and Job
Satisfaction.” Journal
of Applied Psychology
99 (2014), pp. 451–67.
12.53 DeChurch and Marks,
“Maximizing the
Benefits”; and Van de
Vliert and Euwema,
“Agreeableness and
Activeness.”
12.54 Langan-Fox, J.
“Communication in
Organizations: Speed,
Diversity, Networks,
and Influence on
Organizational
Effectiveness, Human
Health, and Relation-
ships.” In Handbook
of Industrial, Work,
and Organizational
Psychology, Vol. 2,
ed. N. Anderson,
D.S. Ones, and H.K.
Sinangil. Thousand
Oaks, CA: Sage 2001,
pp. 188–205.
12.55 Krone, K.J.; F.M.
Jablin; and L.L.
Putman. “Com-
munication Theory
and Organizational
Communication:
Multiple Perspec-
tives.” In Handbook of
Organizational Com-
munication, ed. F.M.
Jablin, K.L. Putman,
KH. Roberts, and
L.W. Porter. Newbury
Park, CA: Sage, 1987;
and Shannon, C.E.,
and W. Weaver. The
Mathematical Theory
of Communication.
Urbana: University of
Illinois Press, 1964.
12.56 Ibid.
12.57 Jablin, F.M., and P.M.
Sias. “Communication
Competence.” In The
New Handbook of
Organizational Com-
munication: Advances
in Theory, Research,
and Methods, ed. F.M.
Jablin and L.L.
Putnam. Thousand
Oaks, CA: Sage, 2001,
pp. 819–64.
12.58 Jordan, P.J., and A.C.
Troth. “Managing
Emotions During
Team Problem Solv-
ing: Emotional Intel-
ligence and Conflict
Resolution.” Human
Performance 17
(2004), pp. 195–218.
12.59 Rafaeli, A., and R.I.
Sutton. “Expression of
Emotion as Part of the
Work Role.” Academy
of Management Review
12 (1987), pp. 23–37.
12.60 Warkentin, M., and
P.M. Beranek. “Train-
ing to Improve Virtual
Team Communica-
tion.” Information Sys-
tems Journal 9 (1999),
pp. 271–89.
12.61 Krone et al., “Com-
munication Theory
and Organizational
Communication”;
and Shannon and
Weaver, “The Math-
ematical Theory of
Communication.”
12.62 Daft, R.L., and R.H.
Lengel. “Information
Richness: A New
Approach to Manage-
rial Behavior and Orga-
nizational Design.”
In Research in Organi-
zational Behavior, ed.
B.M. Staw and L.L.
Cummings. Green-
wich, CT: JAI Press,
1984, pp. 191–233.
12.63 Ibid.
12.64 Bonaccio, S.; J.
O’Reilly; S. L.
O’Sullivan; and F.
Chiocchio. “Non-
verbal Behavior and
Communication in
the Workplace: A
Review and Agenda
for Research.” Journal
of Management 42
(2016), pp. 1044–74.
12.65 Daft and Lengel,
“Information
Richness.”
12.66 Ibid.
12.67 Byron, K. “Carrying
Too Heavy a Load?
Final PDF to printer
407C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 407 10/17/17 11:36 AM
The Communication
and Miscommunica-
tion of Emotion by
Email.” Academy of
Management Review 33
(2008), pp. 309–27.
12.68 Daft and Lengel,
“Information
Richness.”
12.69 Ibid.
12.70 Leavitt, H.J. “Some
Effects of Certain
Communication Pat-
terns on Group Per-
formance.” Journal of
Abnormal and Social
Psychology 436 (1951),
pp. 38–50.
12.71 Glanzer, M., and R.
Glaser. “Techniques
for the Study of Group
Structure and Behav-
ior: II. Empirical
Studies of the Effects
of Structure in Small
Groups.” Psychological
Bulletin 58 (1961),
pp. 1–27.
12.72 Farace, R.V.; P.R.
Monge; and H.M. Rus-
sell. “Communication
in Micro-Networks.”
In Organizational
Communication, 2nd
ed., ed. F.D. Ferguson
and S. Ferguson. New
Brunswick, NJ: Trans-
action Books, 1988,
pp. 365–69.
12.73 Roberts, B. “Develop-
ing a Social Business
Network.” HR Maga-
zine, October 2010,
pp. 54–60.
12.74 Davenport, R. “More
Than a Game.” T&D,
June 2010, pp. 26–29.
12.75 Oh, O.; H.K. Kyo-
unghee; and H.R.
Rao. “An Exploration
of Social Media in
Extreme Events:
Rumor Theory and
Twitter during the
Haiti Earthquake
2010, ICIS 2010 Pro-
ceedings. http://aisel
.aisnet.org/icis2010_
submissions/231/.
12.76 Edmondson, A. “Psy-
chological Safety and
Learning Behavior in
Work Teams.” Admin-
istrative Science Quar-
terly 44 (1999), pp.
350–83; Kostopoulos,
K., and N. Bozionelos.
“Team Exploratory
and Exploitative
Learning: Psycho-
logical Safety, Task
Conflict and Team
Performance.” Group
and Organization Man-
agement 36 (2011),
pp. 385–415; and
Morrison, E.W.; S.L.
Wheeler-Smith; and
K. Dishan. “Speak-
ing up in Groups: A
Cross-Level Study of
Group Voice Climate
and Voice.” Journal of
Applied Psychology 96
(2011), pp. 183–91.
12.77 Williams, K.D., and
S.A. Nida. “Ostra-
cism: Consequences
and Coping.” Current
Directions in Psycho-
logical Science 20
(2011), pp. 71–75.
12.78 Mach, M.; S. Dolan;
and S. Tzafrir. “The
Differential Effect of
Team Members’ Trust
on Team Performance:
The Mediation Role of
Team Cohesion.” Jour-
nal of Occupational
and Organizational
Psychology 83 (2010),
pp. 771–94.
12.79 Festinger, L. “Infor-
mal Social Communi-
cation.” Psychological
Review 57 (1950),
pp. 271–82.
12.80 Beal, D.J.; R.R.
Cohen; M.J. Burke;
and C.L. McLendon.
“Cohesion and Per-
formance in Groups:
A Meta-Analytic Clari-
fication of Construct
Relations.” Journal of
Applied Psychology 88
(2003), pp. 989–1004;
and Mullen, B., and
C. Copper. “The Rela-
tion between Group
Cohesiveness and
Performance: An Inte-
gration.” Psychological
Bulletin 115 (1994),
pp. 210–27.
12.81 Mathieu, J.E.; M.R.
Kukenberger; D.
D’Innocenzo; and
G. Reilly. “Modeling
Reciprocal Team
Cohesion-Performance
Relationships, as
Impacted by Shared
Leadership and Mem-
bers’ Competence.”
Journal of Applied
Psychology 100 (2015),
pp. 713–34.
12.82 Janis, I.L. Victims of
Groupthink: A Psycho-
logical Study of Foreign
Policy Decisions and
Fiascoes. Boston, MA:
Houghton Mifflin,
1972.
12.83 Ibid.
12.84 Hirokawa, R.; D.
Gouran; and A.
Martz. “Understand-
ing the Sources
of Faulty Group
Decision Making:
A Lesson from the
Challenger Disaster.”
Final PDF to printer
408 C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 408 10/17/17 11:36 AM
Small Group Behavior
19 (1988), pp. 411–33;
Esser, J., and J. Lino-
erfer. “Groupthink
and the Space Shuttle
Challenger Accident:
Toward a Quantita-
tive Case Analysis.”
Journal of Behavioral
Decision Making 2
(1989), pp. 167–77;
and Moorhead, G.; R.
Ference; and C. Neck.
“Group Decision Fias-
coes Continue: Space
Shuttle Challenger and
a Revised Groupthink
Framework.” Human
Relations 44 (1991),
pp. 539–50.
12.85 Stephens, J., and P.
Behr. “Enron Culture
Fed Its Demise.”
Washington Post, June
27, 2002, pp. A1–A2.
12.86 Shea, G.P., and R.A.
Guzzo. “Groups as
Human Resources.” In
Research in Personnel
and Human Resource
Management, Vol. 5,
ed. K.M. Rowland and
G.R. Ferris. Green-
wich, CT: JAI Press,
1987, pp. 323–56.
12.87 Tasa, K.; S. Taggar;
and G.H. Seijts.
“Development of
Collective Efficacy in
Teams: A Multilevel
and Longitudinal
Perspective.” Journal
of Applied Psychology
92 (2007), pp. 17–27.
12.88 Gully, S.M.; K.A.
Incalcaterra; A.
Joshi; and J.M.
Beubien. “A Meta-
Analysis of Team-
Efficacy, Potency,
and Performance:
Interdependence and
Level of Analysis
as Moderators of
Observed Relation-
ships.” Journal of
Applied Psychology 87
(2002), pp. 819–32.
12.89 Rapp, T.L.; B.G.
Bachrach; A.A. Rapp;
and R. Mullins. “The
Role of Team Goal
Monitoring in the
Curvilinear Relation-
ship between Team
Efficacy and Team
Performance.” Journal
of Applied Psychology
99 (2014), pp. 976–87.
12.90 Concalo, J.A.; E. Pol-
man; and C. Maslach.
“Can Confidence
Come Too Soon?
Collective Efficacy,
Conflict and Group
Performance over
Time.” Organizational
Behavior and Human
Decision Processes 113
(2010), pp. 13–24.
12.91 Tasa et al., “Develop-
ment of Collective
Efficacy in Teams.”
12.92 Klimoski, R.J., and S.
Mohammed. “Team
Mental Model: Con-
struct or Metaphor?”
Journal of Manage-
ment 20 (1994), pp.
403–37.
12.93 Cannon-Bowers, J.A.;
E. Salas; and S.A. Con-
verse. “Shared Mental
Models in Expert
Team Decision Mak-
ing.” Individual and
Group Decision Making,
ed. N.J. Castellan.
Hillsdale, NJ: Erlbaum,
1993, pp. 221–46.
12.94 Wegner, D.M.
“Transactive Memory:
A Contemporary
Analysis of the Group
Mind.” In Theories of
Group Behavior, ed.
B. Mullen and G.R.
Goethals. New York:
Springer-Verlag, 1986,
pp. 185–208.
12.95 Mell, J.N.; Van Knip-
penberg, D.; and Van
Ginkel, W.P. “The
Catalyst Effect: The
Impact of Transac-
tive Memory System
Structure on Team
Performance.” Acad-
emy of Management
Journal 57 (2014), pp.
1154–73.
12.96 Hollingshead, A.B.
“Communica-
tion, Learning,
and Retrieval in
Transactive Memory
Systems.” Journal of
Experimental Social
Psychology 34 (1998),
pp. 423–42.
12.97 Wegner, “Transactive
Memory.”
12.98 LePine et al., “A Meta-
Analysis of Team
Process.”
12.99 Barrick, M.R.; B.H.
Bradley; A.L. Kristoff
Brown; and A.E. Col-
bert. “The Moderating
Role of Top Manage-
ment Team Interdepen-
dence: Implications for
Real Teams and Work-
ing Groups.” Academy
of Management Journal
50 (2007), pp. 544–57;
and Vashidi, D.R.; P.A.
Bamberger; and M.
Erez. “Can Surgical
Teams Ever Learn?
The Role of Coordina-
tion, Complexity, and
Transitivity in Action
Team Learning.” Acad-
emy of Management
Journal 56 (2013),
pp. 945–71.
Final PDF to printer
409C H A P T E R 1 2 Teams: Processes and Communication
coL27660_ch12_374-409.indd 409 10/17/17 11:36 AM
12.100 LePine et al., “A
Meta-Analysis of
Team Process.”
12.101 Stevens, M.J., and
M.A. Campion. “The
Knowledge, Skill,
and Ability Require-
ments for Teamwork:
Implications for
Human Resource
Management.”
Journal of Manage-
ment 20 (1994), pp.
503–30.
12.102 Ibid.; and Ellis,
A.P.J.; B. Bell; R.E.
Ployhart; J.R. Hol-
lenbeck; and D.R.
Ilgen. “An Evaluation
of Generic Team-
work Skills Training
with Action Teams:
Effects on Cognitive
and Skill-Based
Outcomes.” Person-
nel Psychology 58
(2005), pp. 641–72.
12.103 Stout, R.J.; E. Salas;
and J.E. Fowlkes.
“Enhancing Team-
work in Complex
Environments
through Team Train-
ing.” Group Dynam-
ics: Theory, Research,
and Practice 1
(1997), pp. 169–82.
12.104 Volpe, C.E.; J.A.
Cannon-Bowers;
E. Salas; and P.E.
Spector. “The Impact
of Cross-Training on
Team Functioning:
An Empirical Inves-
tigation.” Human
Factors 38 (1996),
pp. 87–100.
12.105 Marks, M.A.; M.J.
Sabella; C.S. Burke;
and S.J. Zaccaro.
“The Impact of
Cross-Training on
Team Effectiveness.”
Journal of Applied
Psychology 87
(2002), pp. 3–13.
12.106 Blickensderfer, E.;
J.A. Cannon-Bowers;
and E. Salas. “Cross
Training and Team
Performance.” In
Making Decisions
Under Stress: Implica-
tions for Individual
and Team Training,
ed. J.A. Cannon-
Bowers and E. Salas.
Washington, DC:
APA Press, 1998, pp.
299–311.
12.107 Dotlich, D., and J.
Noel. Active Learn-
ing: How the World’s
Top Companies Are
Recreating Their
Leaders and Them-
selves. San Francisco:
Jossey-Bass, 1998;
and Marquardt, M.
“Harnessing the
Power of Action
Learning.” T&D 58
(June 2004), pp.
26–32.
12.108 Carey, S. “Racing
to Improve; United
Airlines Employees
Go to School for
Pit Crews to Boost
Teamwork, Speed.”
The Wall Street
Journal, Eastern
Edition, March 24,
2006, p. B1.
12.109 Salas, E.; D. Bozell;
B. Mullen; and J.E.
Driskell. “The Effect
of Team Building
on Performance: An
Integration.” Small
Group Research 30
(1999), pp. 309–29.
12.110 Berman, D. “Zap!
Pow! Splat!; Laser
Tag and Paintball
Can Enhance Team-
work, Communica-
tions, and Planning.”
BusinessWeek,
February 9, 1998,
p. ENT22. ProQuest
Database.
12.111 Rasor, M. “Got
Game? Bring It On:
WhirlyBall Helps
Workers Develop
Drive, Teamwork.”
Knight Ridder Tri-
bune Business News,
April 3, 2006, p. 1.
ProQuest Database.
12.112 Regan, M.P. “Team
Players: From Drums
to Daring Getaways,
Workers Embark on
Team-Building Exer-
cises.” Gainesville
Sun, February 15,
2004, pp. 5G, 6G.
12.113 Ballard, T.N. “Postal
IG under Fire for
Unusual ‘Team-
Building’ Activities.”
Government
Executive
.com, 2003, http://
www.govexec
.com/dailyfed/0503/
050203t1.htm.
12.114 Source: Dorgan, B.L.,
and R. Widen. “Letter
to Chairman Fine-
man,” May 1, 2003.
12.115 Salas et al., “The
Effect of Team
Building.”
12.116 Chang, W.W. “Is the
Group Activity Food
or Poison in a Multi-
cultural Classroom?”
T&D (April 2010),
pp. 34–37.
Final PDF to printer
coL27660_ch13_410-441.indd 410 10/17/17 11:38 AM
13
LEARNING GOALS
13.1 What is leadership, and what role does power play in leadership?
13.2 What are the different types of power that leaders possess, and when can they use those types most
effectively?
13.3 What behaviors do leaders exhibit when trying to influence others, and which of these is most
effective?
13.4 What is organizational politics, and when is political behavior most likely to occur?
13.5 How do leaders use their power and influence to resolve conflicts in the workplace?
13.6 What are the ways in which leaders negotiate in the workplace?
13.7 How do power and influence affect job performance and organizational commitment?
After reading this chapter, you should be able to answer the following questions:
Leadership: Power and
Negotiation
INDIVIDUAL
OUTCOMES
INDIVIDUAL
MECHANISMS
INDIVIDUAL
CHARACTERISTICS
ORGANIZATIONAL
MECHANISMS
Organizational
Culture
Organizational
Structure
Motivation
Trust, Justice,
& Ethics
Teams:
Characteristics &
Diversity
Learning &
Decision Making
Stress
Leadership:
Power &
Negotiation
Job
Satisfaction
Leadership:
Styles &
Behaviors
Organizational
Commitment
Job
Performance
GROUP
MECHANISMS
Teams:
Characteristics &
Diversity
Teams:
Processes &
Communication
Ability
Personality &
Cultural Values
Final PDF to printer
coL27660_ch13_410-441.indd 411 10/17/17 11:38 AM
W
hen you go to work, you likely have the expec-
tation that somebody will be there to tell you
what to do. You will, in essence, have a man-
ager or a leader that will, at a minimum, set some broad
roles and goals for you and be there to influence your
behavior. Zappos, the online shoe and accessory retailer
based in Las Vegas, is attempting to turn that notion on its
head. For the past three years, CEO Tony Hsieh, 43, has
been constantly pushing his organization toward 100%
self-management through the use of “holocracy.” What
exactly does that mean? One thing it means for sure: Who
is leading and where the power resides in the organization
doesn’t look like many other companies. The general idea
behind holocracy is a work environment in which there are
no bosses, politics, or power; employees are supposed to
figure out largely on their own what to work on and how
to get their work done. It has not been an easy transition.
Zappos was purchased by Amazon.com for $1.2 billion
in 2009 and has largely been left to operate on its own
ever since. One of the reasons Amazon CEO Jeff Bezos
has kept a hands-off approach is Zappos’s unique
approach to leadership and managing people. Holocracy
is pushing the boundaries of “unique” for a company the
size of Zappos. For eight straight years, Zappos was a
fixture on Fortune’s Best Companies to Work For survey.
In 2016, they fell off the list scoring exceptionally low on
questions like, “Do employees think management has a
clear view of where the organization is going and how to
get there?”
Zappos employees are self-organized into “circles”
instead of traditional work teams. Each circle has a “lead
link” employee who somewhat manages the process, but
the lead link has no formal authority and can’t tell anyone
what to do. The employees in each circle decide their own
roles and responsibilities through a number of different
gatherings known as “governance meetings,” and so far
Zappos has over 300 circles dealing with everything from
customer service to social media. One interesting result of
Zappos instituting a “leaderless” organization is not the fact
that there are no formal leaders, but that many employees
have noticed a real lack of leadership. In essence, when
operating a self-managing environment everyone has to
learn good leadership and influence skills in order for the
organization to be successful.
ZAPPOS
©Gina Ferazzi/Los Angeles Times/Getty Images
Final PDF to printer
412 C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 412 10/17/17 11:38 AM
L E A D E R S H I P : P O W E R A N D N E G OT I AT I O N
As evidenced by Zappos, leadership in organizations is complicated. It is a mix of factors that has
to do with ideas, behaviors, positions, and so forth. Leaders within organizations can make a huge
difference to the success of a company or group. Much of this success depends on how effectively
they use power and influence in achieving their objectives. Depending on whether you like the
idea of “holocracy,” you could read the opening example and anoint Tony Hsieh as a great leader
and try to simply adopt his behavioral examples to follow in his footsteps. However, things aren’t
quite that simple. As we’ll discover in this and the next chapter, there are many different types of
leaders, many of whom can excel, given the right circumstances.
There is perhaps no subject that’s written about more in business circles than the topic of
leadership. A quick search on Amazon.com for “leadership” will generate a list of more than
200,000 books! That number doesn’t even count the myriad videos, calendars, audio recordings,
and other items—all designed to help people become better leaders. Given all the interest in this
topic, a natural question becomes, “What exactly is a leader?” We define leadership as the use of
power and influence to direct the activities of followers toward goal achievement.1 That direction
can affect followers’ interpretation of events, the organization of their work activities, their com-
mitment to key goals, their relationships with other followers, and their access to cooperation and
support from other work units.2 This chapter focuses on how leaders get the power and influence
they use to direct others and the ways in which power and influence are utilized in organizations,
including through negotiation. Chapter 14 will focus on how leaders actually use their power and
influence to help followers achieve their goals.
W H Y A R E S O M E L E A D E R S M O R E P O W E R F U L
T H A N OT H E R S ?
What exactly comes to mind when you think of the term “power”? Does it raise a positive or
negative image for you? Certainly it’s easy to think of leaders who have used power for what we
would consider good purposes, but it’s just as easy to think of leaders who have used power for
unethical or immoral purposes. For now, try not to focus on how leaders use power but instead
on how they acquire it. Power can be defined as the ability to influence the behavior of others
and resist unwanted influence in return.3 Note that this definition gives us a couple of key points
to think about. First, just because a person has the ability to influence others does not mean they
will actually choose to do so. In many organizations, the most powerful employees don’t even
realize how influential they could be! Second, in addition to influencing others, power can be
seen as the ability to resist the influence attempts of others.4 This resistance could come in the
form of the simple voicing of a dissenting opinion, the refusal to perform a specific behavior, or
the organization of an opposing group of coworkers.5 Sometimes leaders need to resist the influ-
ence of other leaders or higher-ups to do what’s best for their own unit. Other times leaders need
to resist the influence of their own employees to avoid being a “pushover” when employees try to
go their own way.
AC Q U I R I N G P OW E R
Think about the people you currently work with or have worked with in the past, or think of stu-
dents who are involved in many of the same activities you are. Do any of those people seem to
have especially high levels of power, meaning that they have the ability to influence your behavior?
What is it that gives them that power? In some cases, their power may come from some formal
position (e.g., supervisor, team leader, teaching assistant, resident advisor). However, sometimes
the most powerful people we know lack any sort of formal authority. It turns out that power in
13.1
What is leadership, and
what role does power play
in leadership?
Final PDF to printer
413C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 413 10/17/17 11:38 AM
organizations can come from a number of different sources. Specifically, there are five major
types of power that can be grouped along two dimensions: organizational power and personal
power.6 These types of power are illustrated in Figure 13-1.
ORGANIZATIONAL POWER The three types of organizational power derive primarily from
a person’s position within the organization. These types of power are considered more formal
in nature.7 Legitimate power derives from a position of authority inside the organization and is
sometimes referred to as “formal authority.” People with legitimate power have some title—some
term on an organizational chart or on their door that says, “Look, I’m supposed to have influ-
ence over you.” Those with legitimate power have the understood right to ask others to do things
that are considered within the scope of their authority. When managers ask an employee to stay
late to work on a project, work on one task instead of another, or work faster, they are exercising
legitimate power. The higher up in an organization a person is, the more legitimate power they
generally possess. Fortune magazine provides rankings of the most powerful women in business.
As shown in Table 13-1, all of those women possess legitimate power, in that they hold a title that
affords them the ability to influence others.
Legitimate power does have its limits, however. It doesn’t generally give a person the right to
ask employees to do something outside the scope of their jobs or roles within the organization.
For example, if a manager asked an employee to wash their car or mow their lawn, it would likely
be seen as an inappropriate request. As we’ll see later in this chapter, there’s a big difference
between having legitimate power and using it effectively. When used ineffectively, legitimate power
can be a very weak form of power. In our opening example, Tony Hsieh is trying to set things up
so that employees in Zappos aren’t influenced by legitimate power at all, but rather by worthwhile
ideas and data.
The next two forms of organizational power are somewhat intertwined with legitimate power.
Reward power exists when someone has control over the resources or rewards another person
wants. For example, managers generally have control over raises, performance evaluations, awards,
more desirable job assignments, and the resources an employee might require to perform a job
effectively. Those with reward power have the ability to influence others if those being influenced
13.2
What are the different
types of power that leaders
possess, and when can
they use those types most
effectively?
FIGURE 13-1 Types of Power
Organizational Power
Personal Power
Legitimate Power
Reward Power
Coercive Power
Expert Power
Referent Power
Ability to
Influence
Others
Final PDF to printer
414 C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 414 10/17/17 11:38 AM
believe they will get the rewards by behaving in a certain way. Coercive power exists when a person
has control over punishments in an organization. Coercive power operates primarily on the prin-
ciple of fear. It exists when one person believes that another has the ability to punish him or her
and is willing to use that power. For example, a manager might have the right to fire, demote, sus-
pend, or lower the pay of an employee. Sometimes the limitations of a manager to impose punish-
ments are formally spelled out in an organization. However, in many instances, managers have a
considerable amount of leeway in this regard. Coercive power is generally regarded as a poor form
of power to use regularly, because it tends to result in negative feelings toward those that wield it.
PERSONAL POWER Of course, the women in Table 13-1 don’t appear on that list just because
they have some formal title that affords them the ability to reward and punish others. There’s
something else about them, as people, that provides them additional capabilities to influence oth-
ers. Personal forms of power capture that “something else.” Expert power derives from a person’s
expertise, skill, or knowledge on which others depend. When people have a track record of high
performance, the ability to solve problems, or specific knowledge that’s necessary to accomplish
tasks, they’re more likely to be able to influence other people who need that expertise. Consider a
lone programmer who knows how to operate a piece of antiquated software, a machinist who was
recently trained to operate a new piece of equipment, or the only engineer who has experience
working on a specific type of project. All of these individuals will have a degree of expert power
because of what they individually bring to the organization. Angela Ahrendts, SVP at Apple,
appears in Table 13-1 largely because of her expert power. Apple CEO Tim Cook hired Ahrendts,
who was then CEO of the British fashion company Burberry, because he felt that her expertise in
TABLE 13-1 Fortune’s 15 Most Powerful Women in Business in 2014
NAME COMPANY POSITION AGE
1 Mary Barra General Motors CEO 54
2 Indra Nooyi PepsiCo Chairman and CEO 60
3 Marilyn Hewson Lockheed Martin Chairman, CEO, and President 62
4 Ginni Rometty IBM Chairman, CEO, and President 59
5 Abigail Johnson Fidelity Investments CEO and President 54
6 Sheryl Sandberg Facebook COO 47
7 Meg Whitman Hewlett-Packard CEO and President 60
8 Phebe Novakovic General Dynamics Chairman and CEO 58
9 Irene Rosenfeld Mondelez International Chairman and CEO 63
10 Safra Katz Oracle Co-CEO 54
11 Lynn Good Duke Energy Chairman, CEO, and president 57
12 Helena Foulkes CVS/pharmacy President 52
13 Ruth Porat Google, Alphabet CFO 58
14 Angela Ahrendts Apple SVP, Retail and Online Stores 56
15 Cathy Engelbert Deloitte LLP CEO 51
Source: K. Bellstrom, E. Fry, B. Kowitt, M. Lev-Ram, L. Rao, J. Reingold, A. Vandermey, P. Wahba, J. Wieczner, and
V. Zarya. “The 50 Most Powerful Women,” Fortune 174, no. 4 (September 15, 2016); pp. 82–99.
Final PDF to printer
415C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 415 10/17/17 11:38 AM
retail could help deliver a vision for the Apple Store. Ahrendts said, “I told him, ‘I’m not a techie,’
and he said, ‘I think we have 10,000 of those, you are supposed to be here.’”8 There is perhaps
no place where expert power comes into play more than in Silicon Valley, where it’s widely per-
ceived that the best leaders are those with significant technological experience and expertise. At
Intel, senior advisor and former CEO Andy Grove “fostered a culture in which ‘knowledge power’
would trump ‘position power.’ Anyone could challenge anyone else’s idea, so long as it was about
the idea and not the person—and so long as you were ready for the demand ‘Prove it.’”9
Referent power exists when others have a desire to identify and be associated with a person.
This desire is generally derived from affection, admiration, or loyalty toward a specific individual.10
Although our focus is on individuals within organizations, there are many examples of political lead-
ers, celebrities, and sports figures who seem to possess high levels of referent power. Barack Obama,
Angelina Jolie, and Peyton Manning all possess referent power to some degree because others want
to emulate them. The same could be said of leaders in organizations who possess a good reputation,
attractive personal qualities, or a certain level of charisma. Tony Hsieh, as detailed in our opening
chapter case, clearly wields referent power. The people who surround him constantly refer to fact
that he lives and breathes the idea employee satisfaction is the key to success in business.11
Of course, it’s possible for a person to possess all of the forms of power at the same time. In
fact, the most powerful leaders—like those in Table 13-1—have bases of power that include all five
dimensions. From an employee’s perspective, it’s sometimes difficult to gauge what form of power
is most important. Why, exactly, do you do what your boss asks you to do? Is it because the boss
has the formal right to provide direction, because the boss controls your evaluations, or because
you admire and like the boss? Many times, we don’t know exactly what type of power leaders pos-
sess until they attempt to use it. Generally speaking, the personal forms of power are more strongly
related to organizational commitment and job performance than are the organizational forms. If
you think about the authorities for whom you worked the hardest, they probably possessed some
form of expertise and charisma, rather than just an ability to reward and punish. That’s not to say
though that organizational forms of power cannot successfully achieve objectives at times. Some
useful guidelines for wielding each of the forms of power can be found in Table 13-2.
TABLE 13-2 Guidelines for Using Power
TYPE OF POWER GUIDELINES FOR USE
Legitimate • Stay within the rights your position holds.
• Communicate your request politely.
• Make sure you describe the purpose of your request.
Reward • Propose rewards that are attractive.
• Only offer what you can follow through on.
• Be clear on exactly what you are offering a reward for.
Coercive • Warn people prior to giving punishment.
• Make sure punishment is fair relative to the nature of the lack of
compliance.
• Follow through quickly and without discrimination or bias.
Expert • Put forth data or other evidence to support your proposal.
• Communicate why the request is important and the justification for it.
• Be consistent, thoughtful, and honest about requests.
Referent • Follow through on commitments.
• Do things for others even when not required to do so.
• Support and uphold others when called for.
Source: For a more detailed list of guidelines and discussion, see Gary A. Yukl, Leadership in Organizations, 7th edition
© 2010
Final PDF to printer
416 C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 416 10/17/17 11:38 AM
CONTINGENCY FACTORS There are certain situations in organizations that are likely to
increase or decrease the degree to which leaders can use their power to influence others. Most
of these situations revolve around the idea that the more other employees depend on a person,
the more powerful that person becomes. A person can have high levels of expert and referent
power, but if he or she works alone and performs tasks that nobody sees, the ability to influ-
ence others is greatly reduced. That being said, there are four factors that have an effect on
the strength of a person’s ability to use power to influence others.12 These factors are summa-
rized in Table 13-3. Substitutability is the degree to which people have alternatives in accessing
resources. Leaders that control resources to which no one else has access can use their power
to gain greater influence. Discretion is the degree to which managers have the right to make
decisions on their own. If managers are forced to follow organizational policies and rules, their
ability to inf luence others is reduced. Centrality represents how important a person’s job is and
how many people depend on that person to accomplish their tasks. Leaders who perform criti-
cal tasks and interact with others regularly have a greater ability to use their power to influence
others. Visibility is how aware others are of a leader’s power and position. If everyone knows
that a leader has a certain level of power, the ability to use that power to influence others is
likely to be high.
MWH, a $1 billion revenue Broomfield, Colorado, engineering firm specializing in water proj-
ects, asked 500 employees in all of its departments where they went when they came up with a
new idea. This would allow MWH to determine who possessed certain types of expertise and who
offered the most help to employees. In a sense, MWH is identifying the individuals in the organi-
zation who are likely to have the most power.13 Companies such as Microsoft, Pfizer, and Google
are increasingly using such networking maps to understand the power structures in their organiza-
tions and who holds the most influence.14
U S I N G I N F LU E N C E
Up until now, we’ve discussed the types of power leaders possess and when their opportunities
to use that power will grow or diminish. Now we turn to the specific strategies that leaders use to
translate that power into actual influence.
Recall that having power increases our ability to influence behavior. It doesn’t mean that we
will use or exert that power. Influence is the use of an actual behavior that causes behavioral or
attitudinal changes in others.15 There are two important aspects of influence to keep in mind.
First, influence can be seen as directional. It most frequently occurs downward (managers influ-
encing employees) but can also be lateral (peers influencing peers) or upward (employees influ-
encing managers). Second, influence is all relative. The absolute power of the “influencer” and
“influencee” isn’t as important as the disparity between them.16 To see how to increase your ability
to influence even before you begin, see this chapter’s OB at the Bookstore feature.
13.3
What behaviors do leaders
exhibit when trying to influ-
ence others, and which of
these is most effective?
TABLE 13-3 The Contingencies of Power
CONTINGENCY LEADER’S ABILITY TO INFLUENCE OTHERS INCREASES WHEN . . .
Substitutability There are no substitutes for the rewards or resources the leader
controls.
Centrality The leader’s role is important and interdependent with others in the
organization.
Discretion The leader has the freedom to make his or her own decisions without
being restrained by organizational rules.
Visibility Others know about the leader and the resources he or she can
provide.
Final PDF to printer
417C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 417 10/17/17 11:38 AM
OB AT THE BOOKSTORE
PRE-SUASION
by Robert Cialdini (New York: Simon & Schuster, 2016)
Advanced trainees were often allowed to accompany and observe an old pro who was conduct-
ing business. I always jumped at those opportunities because I wanted to see if I could register
not just what practitioners in general did to succeed but also what the best of them did. One
such practice quickly surfaced that shook my assumptions. I’d expected that the aces of their
professions would spend more time than the inferior performers developing the specifics of their
requests for change: the clarity, logic, and desirable features of them. That’s not what I found.
With those words, Robert Cialdini sets the stage for the reasoning
behind the follow up to his groundbreaking book Influence, which
remains (after 30 years) the #1 bestseller on consumer behavior at
Amazon. Ask yourself a question, do you normally read OB at the
Bookstore boxes all the way through, or do you generally read only
the quote and move on? If it’s the latter, I’d ask you to think about
why you are still reading. Cialdini might argue that it’s because the
quote above leaves you with a bit of a mystery or an unfinished
explanation. There is no clear conclusion and this has a tendency to
“magnetize” your attention while waiting for the answer. In essence,
it sets the stage for you to be influenced.
This is the main premise of Cialdini’s book Pre-Suasion. Influ-
ence is not only about employing the right tactics of persuasion—it’s
also about doing them at the right time. The book focuses on walk-
ing the reader through the research on how to make people ready
to be influenced, namely—what attracts people’s attention and what
mental processes incline us to change our minds or behavior. So what exactly was it that allowed
those high achievers in the opening quote to separate themselves from everyone else? Cialdini
says, “The highest achievers spent more time crafting what they did and said before making a
request. They set about their mission as skilled gardeners who know that even the finest seeds will
not take root in stony soil or bear fullest fruit in poorly prepared ground.”
©Roberts Publishing Services
INFLUENCE TACTICS Leaders depend on a number of tactics to cause behavioral or attitudinal
changes in others. In fact, there are at least 10 types of tactics that leaders can use to try to influ-
ence others.17 These tactics and their general levels of effectiveness are illustrated in Figure 13-2.18
The four most effective tactics have been shown to be rational persuasion, inspirational appeals,
consultation, and collaboration. Rational persuasion is the use of logical arguments and hard facts
to show the target that the request is a worthwhile one. Research shows that rational persuasion is
most effective when it helps show that the proposal is important and feasible.19 Rational persua-
sion is particularly important because it’s the only tactic that is consistently successful in the case
of upward influence.20 At Alphabet, for example, data is all-important. CEO Larry Page has been
willing to change his mind in the face of conflicting information. Douglas Merrill, former Google
CIO, said, “Larry would wander around the engineers and he would see a product being developed,
and sometimes he would say, ‘Oh I don’t like that,’ but the engineers would get some data to back
up their idea, and the amazing thing was that Larry was fine to be wrong. As long as the data sup-
ported them, he was okay with it. And that was such an incredibly morale-boosting interaction for
engineers.”21 An inspirational appeal is a tactic designed to appeal to the target’s values and ideals,
Final PDF to printer
418 C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 418 10/17/17 11:38 AM
Source: Adapted from S. Lee, S. Han, M. Cheong, S.L. Kim and S. Yun, “How Do I Get My Way? A Meta-Analytic Review
of Research on Influence Tactics,” Leadership Quarterly 28 (2017), pp. 210–28.
FIGURE 13-2 Influence Tactics and Their Effectiveness
Most E�ective Moderately E�ective Least E�ective
Rational Persuasion
Consultation
Inspirational
Appeals
Collaboration
Ingratiation
Personal Appeals
ExchangeApprising
Pressure
Coalitions
thereby creating an emotional or attitudinal reaction. To use this tactic effectively, leaders must have
insight into what kinds of things are important to the target. Tony Hsieh does his best to use inspira-
tional appeals when talking about the benefits of holocracy to the larger group at Zappos and what
he believes it can bring the company.22 Consultation occurs when the target is allowed to participate
in deciding how to carry out or implement a request. This tactic increases commitment from the tar-
get, who now has a stake in seeing that his or her opinions are valued. A leader uses collaboration by
attempting to make it easier for the target to complete the request. Collaboration could involve the
leader helping complete the task, providing required resources, or removing obstacles that make task
completion difficult.23 Ginni Rometty, CEO of IBM and number 4 in Table 13-1, is known inside
and outside the organization for her collaborative tactics. Rometty and IBM entered into an alliance
with its biggest rival, Apple, to bring IBM services to Apple’s iOS platform. Apple CEO Tim Cook
says of Rommety, “I think she’s wicked smart. She has an incredible ability to partner and can make
tough decisions and do so decisively. And she sees things as they really are.”24
Three other influence tactics are sometimes effective and sometimes not. Ingratiation is the
use of favors, compliments, or friendly behavior to make the target feel better about the influ-
encer. You might more commonly hear this referred to as “sucking up,” especially when used in
an upward influence sense.
Ingratiation has been shown
to be more effective when used
as a long-term strategy and not
nearly as effective when used
immediately prior to making
an influence attempt.25 Per-
sonal appeals occur when the
requestor asks for something
based on personal friendship
or loyalty. The stronger the
friendship, the more success-
ful the attempt is likely to be.
As described in our OB Inter-
nationally feature, there are cul-
tural differences when it comes
to this kind of an appeal just as
there are with other influence
Larry Page (left), CEO of
Alphabet (parent company
of Google), is known for
his willingness to allow
employees to use rational
persuasion (data) to
change his mind on an
issue.
©Paul Sakuma/AP Images
Final PDF to printer
419C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 419 10/17/17 11:38 AM
When Google hired Kai-Fu Lee to be vice president of engineering and president of Google
Greater China, with a more than $10 million compensation package, the company was counting
on his continued ability to use the same skills that allowed him to be a huge success at Microsoft.
What was it that Lee possessed that made him so worthwhile? Lee argues that it was his under-
standing of guanxi (pronounced gwan-she). In the Chinese culture, guanxi (literally translated
“relationships”) is the ability to influence decisions by creating obligations between parties based
on personal relationships.
Guanxi represents a relationship between two people that involves both sentiment and obliga-
tion. Individuals with high levels of guanxi tend to be tied together on the basis of shared institu-
tions such as kinship, places of birth, schools attended, and past working relationships. Although
such shared institutions might “get someone in the door” in the United States, in China, they
become a higher form of obligation. Influence through guanxi just happens—it’s an unspoken
obligation that must be addressed. It is, in a sense, a blend of formal and personal relationships
that exists at a different level than in the United States. There is no such thing as a “business only”
relationship, and the expectation is simply that if you take, you must also give back. Lee (who
left Google) and his guanxi were so great that Google’s Chinese product managers insisted that
their business cards read “Special Assistant to Kai-Fu Lee” and that their desks be placed within
100 feet of his so that they could effectively do business outside the company.
Evidence suggests that companies like Microsoft and Google that possess guanxi have higher
levels of performance. American managers who go to work overseas must be conscious of these
different types of relationships and expectations. In addition to understanding the power of
guanxi, evidence suggests that Chinese managers from different areas (e.g., Hong Kong, Taiwan,
mainland China) have different beliefs when it comes to which influence tactics are the most
effective. There is also recent evidence that the norms around guanxi in China are changing with
time. If anything, it goes to show that managers need to be acutely aware of both general and more
specific cultural differences when trying to influence others in China.
OB INTERNATIONALLY
Sources: S. Levy, In the Plex: How Google Thinks, Works, and Shapes Our Lives; (New York: Simon & Schuster, 2011);
R. Buderi, “The Talent Magnet,” Fast Company 106 (2006), pp. 80–84; C.C. Chen, Y.R. Chen; and K. Xin, “Guanxi
Practices and Trust in Management: A Procedural Justice Perspective,” Organization Science 15 (2004), pp. 200–9;
R.Y.J. Chua, “Building Effective Business Relationships in China,” MIT Sloan Management Review 53 (2012), pp. 27–33;
P.P. Fu., T.K. Peng, J.C. Kennedy, and G. Yukl, “A Comparison of Chinese Managers in Hong Kong, Taiwan, and Main-
land China,” Organizational Dynamics 33 (2003), pp. 32–46; Y. Luo., Y. Huang, and S.L. Wang, “Guanxi and Organiza-
tional Performance: A Meta-Analysis,” Management and Organization Review 8 (2011), pp. 139–72; M. Wong, “Guanxi
Management as Complex Adaptive Systems: A Case Study of Taiwanese ODI in China,” Journal of Business Ethics 91
(2010), pp. 419–32; M.M. Yang, Gifts, Favors, and Banquets: The Art of Social Relationships in China; (Ithaca, NY: Cornell
University Press, 1994); and X. Zhang, N. Li, and B.T. Harris, “Putting Non-Work Ties to Work: The Case of Guanxi in
Supervisor-Subordinate Relationships,” Leadership Quarterly 26 (2015), p. 37.
attempts. Finally, apprising occurs when the requestor clearly explains why performing the request
will benefit the target personally. It differs from rational persuasion in that it focuses solely on the
benefit to the target as opposed to simple logic or benefits to the group or organization.
The three tactics that have been shown to be least effective and could result in resistance
from the target are pressure, coalitions, and exchange tactics. Of course, this statement doesn’t
mean that they aren’t used or can’t be effective at times. Pressure is the use of coercive power
through threats and demands. As we’ve discussed previously, such coercion is a poor way to influ-
ence others and may only bring benefits over the short term. The next tactic is the formation of
coalitions. Coalitions occur when the influencer enlists other people to help influence the target.
Final PDF to printer
420 C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 420 10/17/17 11:38 AM
These people could be peers, subordinates, or one of the target’s superiors. Coalitions are gener-
ally used in combination with one of the other tactics. For instance, if rational persuasion is not
strong enough, the influencer might bring in another person to show that that person agrees with
the logic of the argument. Finally, an exchange tactic is used when the requestor offers a reward
or resource to the target in return for performing a request. This type of request requires that the
requestor have something of value to offer.26 It differs from apprising in that the benefit is some-
thing that the requestor gives to the target and not something that simply results from the action.27
Although exchange “can” be effective at times, it is very unpredictable and can even end up have
a negative effect on influence.
Two points should be noted about leaders’ use of influence tactics. First, influence tactics
tend to be most successful when used in combination.28 Many tactics have some limitations or
weaknesses that can be overcome using other tactics. Second, the influence tactics that tend
to be most successful are those that are “softer” in nature. Rational persuasion, consultation,
inspirational appeals, and collaboration take advantage of personal rather than organizational
forms of power. Leaders that are the most effective at influencing others will generally rely on
the softer tactics, make appropriate requests, and ensure the tactics they use match the types
of power they have. Mondelez International CEO Irene Rosenfeld (number 9 in Table 13-1) is
known for her ability to persuade. A former executive with Kraft said, “When she is trying to
persuade you of something, she will be relentless in coming back with facts and showing you
she has the support of other people, she will be totally emotionally and intellectually commit-
ted to her idea.”29
RESPONSES TO INFLUENCE TACTICS As illustrated in Figure 13-3, there are three possible
responses people have to influence tactics.30 Internalization occurs when the target of influence
agrees with and becomes committed to the influence request.31 For a leader, this is the best out-
come because it results in employees putting forth the greatest level of effort in accomplishing
what they are asked to do. Internalization reflects a shift in both the behaviors and the attitudes
of employees. Proper use of the personal forms of power are most likely to result in internaliza-
tion. Compliance occurs when targets of influence are willing to do what the leader asks, but they
do it with a degree of ambivalence. Compliance reflects a shift in the behaviors of employees but
not their attitudes. This behavior is the most common response to influence attempts in orga-
nizations, because anyone with some degree of power who makes a reasonable request is likely
to achieve compliance. That response allows leaders to accomplish their purpose, but it doesn’t
bring about the highest levels of employee effort and dedication. Proper use of organizational
forms of power are, at best, most likely to result in compliance. Still, it’s clearly preferable to
resistance, which occurs when the target refuses to perform the influence request and puts forth
an effort to avoid having to do it. Employee resistance could come in the form of making excuses,
trying to influence the requestor in return, or simply refusing to carry out the request. Resistance
is most likely when the influencer’s power is low relative to the target or when the request itself is
inappropriate or unreasonable.32
P OW E R A N D I N F LU E N C E I N AC T I O N
In this section, we look at two major areas in which leaders have the ability to use power to influ-
ence others. The first is through navigating the environment of organizational politics within the
organization. The second is through using power and influence to help solve conflicts within the
organization. As it turns out, it’s easy for these two areas to coincide.
ORGANIZATIONAL POLITICS If there was perhaps one term that had a more negative con-
notation than power, it might be politics. You’ve probably had people give you career advice such
as, “Stay away from office politics” or “Avoid being seen as political.” The truth is that you can’t
escape it; politics are a fact of life in organizations!33 Although you might hear company execu-
tives, such as former Vodafone CEO Sir Christopher Gent, make statements such as, “[When I
was CEO], we were mercifully free of company politics and blame culture,”34 you can be pretty
sure that wasn’t actually the case—especially given that England’s Vodafone is one of the world’s
largest mobile phone operators. Tony Hsieh, our chapter’s opening example, was hoping that the
Final PDF to printer
421C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 421 10/17/17 11:38 AM
shift to holocracy would either get rid of or at least diminish internal politics at Zappos. However,
a number of managers worked hard to try to hang on to the power they had in the old organiza-
tional structure and that involved using politics.35 Whether we like it or not, organizations are
filled with independent, goal-driven individuals who must take into account the possible actions
and desires of others to get what they want.36
Organizational politics can be seen as actions by individuals that are directed toward the
goal of furthering their own self-interests.37 Although there’s generally a negative perception
of politics, it’s important to note that this definition doesn’t imply that furthering one’s self-
interests is necessarily in opposition to the company’s interests. A leader needs to be able to
push his or her own ideas and inf luence others through the use of organizational politics.
Research has recently supported the notion that, to be effective, leaders must have a certain
degree of political skill.38 In fact, universities and some organizations such as Becton, Dick-
inson, and Company—a leading global medical technology company based in Franklin Lakes,
New Jersey—are training their future leaders to be attuned to their political environment and
develop their political skill.39
Political skill is the ability to effectively understand others at work and use that knowledge
to influence others in ways that enhance personal and/or organizational objectives.40 Research
indicates that there are four dimensions of political skill.41 Networking ability is an adeptness at
identifying and developing diverse contacts. Social astuteness is the tendency to observe others
and accurately interpret their behavior. Interpersonal influence involves having an unassuming
and convincing personal style that’s flexible enough to adapt to different situations. Apparent
sincerity involves appearing to others to have high levels of honesty and genuineness. Taken
together, these four skills provide a distinct advantage when navigating the political environ-
ments in organizations. Individuals who exhibit these types of skills have higher ratings of both
task performance and organizational citizenship behaviors from others, especially when the
social requirements of the job are high.42 To see where you stand on political skill, see our
OB Assessments feature.
Although organizational politics can lead to positive outcomes, people’s perceptions of politics
are generally negative. This perception is certainly understandable, as anytime someone acts in
a self-serving manner, it’s potentially to the detriment of others.43 In a highly charged political
environment in which people are trying to capture resources and influence one another toward
potentially opposing goals, it’s only natural that some employees will feel stress about the uncer-
tainty they face at work. Environments that are perceived as extremely political have been shown
13.4
What is organizational
politics, and when is politi-
cal behavior most likely to
occur?
FIGURE 13-3 Responses to Influence Attempts
Most E�ective
Least E�ective
Internalization
Target agrees with and becomes
committed to request
(Behavioral and attitudinal changes)
Compliance
Target is willing to perform request,
but does so with indi�erence
(Behavioral change only)
Resistance
Target is opposed to request and
attempts to avoid doing it
(No change in behavior or attitude)
Final PDF to printer
422 C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 422 10/17/17 11:38 AM
OB ASSESSMENTS
SCORING AND INTERPRETATION:
If your scores sum up to 23 or more, you have a higher than average level of political skill. If your
scores sum up to 22 or less, you have a below average level of political skill.
Source: For a more detailed measure of political skill, see G.R. Ferris, D.C. Treadway, R.W. Kolodinsky, W.A. Hochwarter,
C.J. Kacmar, C. Douglas, and D.D. Frink, “Development and Validation of the Political Skill Inventory,” Journal of
Management 31 (2005), pp. 126–52.
POLITICAL SKILL
How much political skill do you have? This assessment is designed to broadly measure political
skill. Please write a number next to each statement that indicates the extent to which it accu-
rately describes your attitude toward work and people while you were on the job. Alternatively,
consider the statements in reference to school rather than work. Answer each question using the
response scale provided. Then sum up your answers for each of the dimensions. (Instructors:
Assessments on expert power, referent power, need for power, and self-monitoring can be found
in the PowerPoints in the Connect Library’s Instructor Resources and in the Connect assign-
ments for this chapter.)
1
STRONGLY DISAGREE
2
DISAGREE
3
NEUTRAL
4
AGREE
5
STRONGLY AGREE
1. It’s easy for me to picture myself in other people’s shoes. _________
2. I can find similarities and talk about things easily with others. _________
3. I’m good at understanding the thoughts and feelings of others. _________
4. Most people feel relaxed around me when I want them to feel that way. _________
5. I can make people feel good after having a conversation with them. _________
6. I almost always find a way to make a connection with people I spend
time around.
_________
to cause lower job satisfaction, increased strain, lower job performance (both task and extra-role
related), higher turnover intentions, and lower organizational commitment among employees.44
In fact, high levels of organizational politics have even been shown to be detrimental to company
performance as a whole.45
As a result, organizations (and leaders) do their best to minimize the perceptions of self-serving
behaviors that are associated with organizational politics. This goal requires identifying the partic-
ular organizational circumstances that cause politics to thrive. As illustrated in Figure 13-4, orga-
nizational politics are driven by both personal characteristics and organizational characteristics.46
Some employees have a strong need for power that provides them with an incentive to engage in
political behaviors. Still others have “Machiavellian” tendencies, meaning that they’re willing to
manipulate and deceive others to acquire power.47
Organizational factors that are the most likely to increase politics are those that raise the
level of uncertainty in the environment. When people are uncertain about an outcome or event,
Final PDF to printer
423C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 423 10/17/17 11:38 AM
they’ll generally act in ways that help reduce that uncertainty. A number of events can trig-
ger uncertainty, including limited or changing resources, ambiguity in role requirements, high
performance pressures, or unclear performance evaluation measures.48 A lack of employee par-
ticipation in decision making has also been found to increase perceptions of organizational
politics.49 These sorts of organizational factors generally have a much stronger effect on political
behavior than do personal factors. That’s actually a good thing for organizations, because it may
be easier to clarify performance measures and roles than it is to change the personal character-
istics of a workforce.
CONFLICT RESOLUTION In addition to using their power to shape office politics, leaders can
use their influence in the context of conflict resolution. Conflict arises when two or more indi-
viduals perceive that their goals are in opposition (see Chapter 12 on team processes and commu-
nication for more discussion of such issues). Conflict and politics are clearly intertwined, because
the pursuit of one’s own self-interests often breeds conflict in others. When conflict arises in orga-
nizations, leaders have the ability to use their power and influence to resolve it. As illustrated in
Figure 13-5, there are five different styles a leader can use when handling conflict, each of which
is appropriate in different circumstances.50 The five styles can be viewed as combinations of two
separate factors: how assertive leaders want to be in pursuing their own goals and how cooperative
they are with regard to the concerns of others.
Competing (high assertiveness, low cooperation) occurs when one party attempts to get his or
her own goals met without concern for the other party’s results. It could be considered a win–lose
approach to conflict management. Competing occurs most often when one party has high levels
13.5
How do leaders use their
power and influence to
resolve conflicts in the
workplace?
FIGURE 13-4 The Causes and Consequences of Organizational Politics
• Need for power
• Machiavellianism
• Lack of participation in decision
• Limited or changing resources
• Ambiguity in roles
• High performance pressure
• Unclear performance evaluations
Personal Characteristics
Organizational Characteristics
Organizational Politics
• Decreased job satisfaction
• Decreased organizational
• Decreased task performance
• Increased strain
Negative Employee Reactions
making
commitment
Final PDF to printer
424 C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 424 10/17/17 11:38 AM
of organizational power and can use legitimate or coercive power to settle the conflict. It also gen-
erally involves the hard forms of influence, such as pressure or coalitions. Although this strategy
for resolving conflict might get the result initially, it won’t win a leader many friends, given the
negative reactions that tend to accompany such tactics. It’s best used in situations in which
the leader knows he or she is right and a quick decision needs to be made.
Avoiding (low assertiveness, low cooperation) occurs when one party wants to remain neu-
tral, stay away from conf lict, or postpone the conf lict to gather information or let things cool
down. Avoiding usually results in an unfavorable result for everyone, including the organiza-
tion, and may result in negative feelings toward the leader. Most important, avoiding never
really resolves the conf lict. Accommodating (low assertiveness, high cooperation) occurs when
one party gives in to the other and acts in a completely unselfish way. Leaders will typically
use an accommodating strategy when the issue is really not that important to them but is very
important to the other party. It’s also an important strategy to think about when the leader has
less power than the other party. If leaders know they are going to lose the conf lict due to their
lack of power anyway, it might be a better long-term strategy to give in to the demands from
the other party.
Collaboration (high assertiveness, high cooperation) occurs when both parties work together
to maximize outcomes. Collaboration is seen as a win–win form of conflict resolution. Collabo-
ration is generally regarded as the most effective form of conflict resolution, especially in refer-
ence to task-oriented rather than personal conflicts.51 However, it’s also the most difficult to
come by because it requires full sharing of information by both parties, a full discussion of con-
cerns, relatively equal power between parties, and a lot of time investment to arrive at a resolu-
tion. But this style also results in the best outcomes and reactions from both parties. Compromise
(moderate assertiveness, moderate cooperation) occurs when conflict is resolved through give-
and-take concessions. Compromise is perhaps the most common form of conflict resolution,
whereby each party’s losses are offset by gains and vice versa. It is seen as an easy form of reso-
lution, maintains relations between parties, and generally results in favorable evaluations for
the leader.52 Women are also more likely to use compromise as a tactic in comparison to men,
whereas men are more likely than women to use competing as a tactic.53 Recent research shows
that individuals with higher levels of emotional intelligence (see Chapter 10) are more likely to
adopt constructive forms of conflict management (the green areas of Figure 13-5).54 Like most
things when it comes to power and influence, it’s not as much a function of which style you use,
but rather when you use it that determines success. It is a mistake to think that one specific style
FIGURE 13-5 Styles of Conflict Resolution
U
n
a
ss
e
rt
iv
e
A
ss
e
rt
iv
e
C
o
n
ce
rn
f
o
r
O
w
n
O
u
tc
o
m
e
s
Competing
(win—lose)
Avoiding
(lose—lose)
Accommodating
(lose—win)
Collaborating
(win—win)
Compromise
CooperativeUncooperative
Concern for Other’s Outcomes
Final PDF to printer
425C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 425 10/17/17 11:38 AM
is superior to another—research has shown that whether a certain style is effective is dependent
on lots of situational issues.55 For instance, trust (see Chapter 7) is extremely important when
using the more cooperative forms of conflict resolution, especially when there is a larger degree
of conflict.56 For more discussion of when to use the various conflict resolution strategies,
see Table 13-4.
One example of conflict resolution is the ongoing battles that Uber faces with the cities that it tries
to do business in.57 Early in its existence, Uber took a very one-sided competing approach when moving
into new markets—moving in without formal permission, developing clientele, and then using that sup-
port to fend off city councils or opposition groups that might have an issue with the way Uber does busi-
ness. Ex-CEO Travis Kalanick called the approach “principled confrontation.”58 While this approach
worked (and might have been necessary for Uber’s success) in some instances, Kalanick recognizes
that it’s not the best approach for all situations. One reason is that the battles it causes can be extraor-
dinarily time consuming for a company growing as quickly as Uber has been. David Plouffe, Uber’s
senior vice president of policy and strategy, says, “We are trying to intensify our partnerships with cit-
ies, intensify discussions, intensify engagement. We are looking for good ways to compromise.”59 The
TABLE 13-4 When to Use the Various Conflict Resolution Styles
RESOLUTION STYLE USE DURING THE FOLLOWING SITUATIONS:
Competing • A quick decision is really important.
• When you believe you are right, other solutions are wrong, and there
is no middle-ground.
• When someone will try to leverage your unwillingness to compete
against you.
Avoiding • If the issue is not as important as others from a timing perspective.
• When there is no acceptable alternative and you can’t win.
• Arriving at a solution will cause more strife than a solution is worth.
• When people’s emotions are running high and backing off might help
to come up with a resolution.
• If acquiring more information would help to arrive at a better solution.
Collaborating • When both parties have legitimate concerns and compromise won’t
solve the problem.
• When different perspectives or learning might help arrive at a better
alternative.
• To build commitment by working together toward a consensus
decision.
Accommodating • If you arrive at the conclusion that your choice or solution is wrong or
that an alternative is better.
• When you want to show that you are reasonable and/or to build up
credit with others.
• When others care substantially more about the outcome than you do
and the ongoing relationship is important.
• If you are going to lose and want to preserve your dignity.
Compromising • When a strong approach isn’t worth the damage it might cause.
• If both parties are committed to their choices and they are equally
powerful.
• Arriving at an interim solution allows you to examine a complicated
issue more fully.
• When time pressure doesn’t allow for a protracted resolution.
• When other approaches haven’t worked.
Source: Adapted from K.W. Thomas, “Toward Multi-Dimensional Values in Teaching: The Example of Conflict Behav-
iors,” Academy of Management Review (1977), pp. 484–90.
Final PDF to printer
426 C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 426 10/17/17 11:38 AM
new approach seems to be work-
ing in the city of Portland, where
city officials and Uber negoti-
ated for more than a year. Frus-
trated, Uber officials went ahead
and launched without an agree-
ment in place and the city filed
a lawsuit against the company.
Uber has since stopped business
while city officials rewrite rules
on taxis that prohibit companies
like Uber from operating—the
first time Uber has ever relented
in such a case.60
N E G OT I AT I O N S
There is perhaps no better place for leaders to use their power, influence, political, and con-
flict resolution skills than when conducting negotiations. Negotiation is a process in which two
or more interdependent individuals discuss and attempt to come to an agreement about their
different preferences. Negotiations can take place inside the organization or when dealing with
organizational outsiders. Negotiations can involve settling a contract dispute between labor and
management, determining a purchasing price for products, haggling over a performance review
rating, or determining the starting salary for a new employee. Clearly, negotiations are a critical
part of organizational life, for both leaders and employees. Successful leaders are good at nego-
tiating outcomes of all types, and doing it well requires knowledge of power structures, how best
to influence the other party, and awareness of their own biases in decision making.61 For a great
example of what it’s like trying to negotiate with multiple parties at the same time, see this chap-
ter’s OB Screen feature.
NEGOTIATION STRATEGIES There are two general strategies leaders must choose between
when it comes to negotiations: distributive bargaining and integrative bargaining.62 Distributive
bargaining involves win–lose negotiating over a “fixed-pie” of resources.63 That is, when one per-
son gains, the other person loses (also known as a “zero-sum” condition). The classic example
of a negotiation with distributive bargaining is the purchase of a car. When you walk into a car
dealership, there’s a stated price on the side of the car that’s known to be negotiable. In these
circumstances though, every dollar you save is a dollar the dealership loses. Similarly, every dollar
the salesperson negotiates for, you lose. Distributive bargaining is similar in nature to a compet-
ing approach to conflict resolution. Some of the most visible negotiations that have traditionally
been approached with a distributive bargaining tactic are union–management labor negotiations.
Whether it be automobile manufacturers, airlines, or nurses at hospitals, the negotiations for these
sessions are typically viewed through a win–lose lens.
Many negotiations within organizations, including labor–management sessions, are begin-
ning to occur with a more integrative bargaining strategy. Integrative bargaining is aimed at
accomplishing a win–win scenario.64 It involves the use of problem solving and mutual respect
to achieve an outcome that’s satisfying for both parties. Leaders who thoroughly understand the
conflict resolution style of collaboration are likely to thrive in these types of negotiations. In gen-
eral, integrative bargaining is a preferable strategy whenever possible because it allows a long-term
relationship to form between the parties (because neither side feels like the loser). In addition,
integrative bargaining has a tendency to produce a higher level of outcome favorability when both
parties’ views are considered, compared with distributive bargaining.65 As an example, picture a
married couple negotiating where to go on vacation.66 The husband wants to go to stay in a log
cabin in the mountains while the wife wants to stay at a luxury resort on the beach. This would
seem to be a case of distributive bargaining—one party will win and the other will lose! After
13.6
What are the ways in which
leaders negotiate in the
workplace?
Ex-Uber CEO Travis
Kalanick has adapted the
company’s conflict resolu-
tion strategies over time
to be more compromising
and collaboration oriented.
©Bloomberg/Getty Images
Final PDF to printer
427C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 427 10/17/17 11:38 AM
OB ON SCREEN
BRIDGE OF SPIES
There is no deal for Abel unless we get Powers and Pryor. Do you understand? It is arranged for
tomorrow morning. It will not happen unless we get two men. Those two men. Two. Two. If there
is no deal . . . your boss must tell the Soviets.
With those words, James Donovan (Tom Hanks) adopts a competing conflict resolution style
after all other efforts to negotiate have broken down in Bridge of Spies (Dir: Steven Spielberg, Walt
Disney, 2015). Based on a true story, the movie primarily revolves around Donovan’s negotiation
of the release and trade of Francis Gary Powers (Austin Stowell), a U.S. Air Force pilot whose
U-2 spy plane was shot down over the Soviet Union in 1960, for Rudolph Abel (Mark Rylance),
a convicted Soviet KGB spy. The secret negotiations are organized by the CIA and Donovan (an
insurance lawyer) is somewhat of an unlikely choice to represent the U.S., but is chosen due to his
having defended Abel in court when no other lawyers would take his case.
Donovan is sent to East Berlin right in the midst of the Berlin Wall being constructed to meet
with a KGB officer in the Soviet Embassy. Complicating matters is the fact that the German Dem-
ocratic Republic (GDR), not yet “recognized” by the United States, is trying to convince Donovan
to swap Abel for an American graduate student named Frederic Pryor (Will Rogers) who was
arrested in East Germany. The GDR hopes that through the exchange, they will gain recognition
from the U.S. government. So the Soviets want Abel, the CIA wants Powers, and Donovan wants
Pryor but doesn’t care about the political underpinnings of East Germany. The second half of the
movie shows Donovan use various conflict resolution strategies in order to arrange a deal where
Abel is switched for both Powers and Pryor at the same time. Against the CIA’s wishes, Donovan
decides to play hardball with East Germany and potentially risk the entire negotiation, but he
realizes he is making a decision about an issue with great value to the United States and that he’s
negotiating against partners who will take advantage of him if he displays weakness.
©Moviestore collection Ltd/Alamy
much discussion though, the couple finds that location (in the mountains) is more important to
the husband and style of accommodations (luxury hotel) is more important to the wife. The two
can come to a solution that provides mutually beneficial outcomes to both parties—a luxury hotel
in the mountains. However, not all situations are appropriate for integrative bargaining. Integra-
tive bargaining is most appropriate in situations in which multiple outcomes are possible, there
Final PDF to printer
428 C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 428 10/17/17 11:38 AM
is an adequate level of trust, and parties are
willing to be flexible.67 Please don’t approach
your next used car purchase with an integra-
tive bargaining strategy!
It’s possible for leaders to develop a repu-
tation for how they negotiate over time, mak-
ing it more difficult for them to approach new
negotiations in a different way. For instance,
Charlie Ergen, cofounder and board chair of
Dish Network, has a reputation for approach-
ing negotiations with a distributive (win–lose)
framework. One analyst commented, “The
only way Charlie can succeed is if he wins.
There aren’t too many situations where people
would get themselves into it with Ergen.” His
reputation “makes it hard for people to partner
with him.” Ergen (a one-time professional gambler) says that he sees business as a card game
where he likes to “play the odds.”68
NEGOTIATION STAGES Regardless of the strategy used, the actual negotiating process typically
goes through a series of stages:69
• Preparation. Arguably the single most important stage of the negotiating process, during prepa-
ration each party determines what its goals are for the negotiation and whether or not the other
party has anything to offer. Each party also should determine its best alternative to a negotiated
agreement, or BATNA. A BATNA describes each negotiator’s bottom line. In other words, at
what point are you willing to walk away? At the BATNA point, a negotiator is actually better off
not negotiating at all. In their seminal book, Getting to Yes: Negotiating Without Giving In, Roger
Fisher and William Ury state that people’s BATNA is the standard by which all proposed agree-
ments should be measured.70
• Exchanging information. In this nonconfrontational process, each party makes a case for its
position and attempts to put all favorable information on the table. Each party also informs the
other party how it has arrived at the conclusions it has and which issues it believes are impor-
tant. When the other party is unfamiliar, this stage likely contains active listening and lots of
questions. Studies show that successful negotiators ask many questions and gather much infor-
mation during this stage.71
• Bargaining. This stage is the one most people imagine when they hear the term “negotiation.”
Success at this stage depends mightily on how well the previous two stages have proceeded. The
goal is for each party to walk away feeling like it has gained something of value (regardless of
the actual bargaining strategy). During this stage, both parties likely must make concessions
and give up something to get something in return. To the degree that each party keeps the other
party’s concerns and motives in mind, this stage will go much more smoothly.
• Closing and commitment. This stage entails the process of formalizing an agreement reached
during the previous stage. For large, complex negotiations such as labor contracts established
between an organization and a union, it can be a very long stage. For others, such as a negotia-
tion between two coworkers about how they might handle their future relationship, no formal
documents or contracts are required, and a simple handshake might suffice. Ideally, there will
be no issues or misconceptions about the agreement arrived at during the bargaining stage. If
they do exist, the negotiation process can regress back into the bargaining stage, and the process
starts all over again. The stage also might be simply a recognition that the parties ended at an
impasse with no agreement! In this case, several options are still available, as we discuss in the
Application section at the end of this chapter.
Charlie Ergen, cofounder
and chairman of the board
for Dish Network, has
developed a reputation as
a ruthless negotiator.
©Brian Brainerd/Getty Images
Final PDF to printer
429C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 429 10/17/17 11:38 AM
NEGOTIATOR BIASES It is important for negotiators to be aware of their biases when
approaching a negotiation. While there are numerous biases to be aware of, the perceived
power relationship between the parties and negotiator emotions are two of the most important.
Research has shown that when negotiators perceive themselves as being in a position of power
in comparison to the other party, they are more likely to demand more, concede less, and behave
more aggressively during negotiations—in other words, they are likely to take a more distributive
approach to negotiations.72 Similarly, when two parties perceive themselves as relatively equal
in power, they take a more integrative approach to negotiations.73 As we all know, negotiations
are generally a very emotion-laden affair, and negotiator emotions can also play a large role in
the ability of two parties to reach successful conclusions during bargaining.74 (See Chapter 10
for a discussion of the ability of individuals to control their emotions during stressful times such
as negotiations.) As it turns out, both positive and negative emotions can influence negotiation
success in a negative way.75 Positive emotions, while they generally lead to a more integrative
bargaining approach, can also cause negotiators to be overconfident and make decisions too
quickly. Negative emotions tend to lead toward a more distributive bargaining approach and
lower judgment accuracy.76
S U M M A RY: W H Y A R E S O M E L E A D E R S M O R E P OW E R F U L
T H A N OT H E R S ?
So what explains why some leaders are more powerful and influential than others? As shown
in Figure 13-6, answering that question requires an understanding of the types of power lead-
ers acquire, what kinds of influence tactics they have available to them, and how they can use
that influence to alter the attitudes and behaviors of their employees. Leaders acquire both
organizational (legitimate, reward, coercive) and personal (expert, referent) forms of power,
which gives them the ability to influence others. They can then use that power to influence
others through influence tactics. Those tactics can help achieve organizational goals or may be
applied more specifically to dealing with organizational politics, conflict resolution, or negotia-
tion situations. In the end, there are three possible responses to influence attempts: internaliza-
tion, compliance, and resistance. The effectiveness of those attempts will depend on leaders’
skill at performing them and how well they match the forms of power they have with the appro-
priate types of influence.
H O W I M P O R TA N T A R E P O W E R A N D I N F LU E N C E ?
How important is a leader’s ability to use power and influence? In other words, does a leader’s
power and influence correlate with job performance and organizational commitment? Figure 13-7
summarizes the research evidence linking power and influence to job performance and organiza-
tional commitment. The figure reveals that power and influence are moderately correlated with
job performance. When used correctly and focused on task-related outcomes, power and influ-
ence can create internalization in workers, such that they are both behaviorally and attitudinally
focused on high levels of task performance. That internalization also helps increase citizenship
behavior, whereas the compliance associated with power and influence can decrease counterpro-
ductive behavior. These job performance benefits make sense given that the effective use of power
and influence can increase the motivation levels of employees, whereas the ineffective use of power
and influence can increase the stress levels of employees.
Figure 13-7 also reveals that power and influence are moderately related to organizational
commitment. When a leader draws on personal sources of power, such as expert power and
referent power, a stronger emotional bond can be created with the employee, boosting affec-
tive commitment. The effective use of such power should increase job satisfaction and a sense
of trust in the leader, all of which are associated with increased commitment levels. As with
13.7
How do power and
influence affect job perfor-
mance and organizational
commitment?
Final PDF to printer
430 C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 430 10/17/17 11:38 AM
FIGURE 13-6 Why Are Some Leaders More Powerful Than Others?
Organizational Power
Personal Power
Legitimate Power
Reward Power
Coercive Power
Expert Power
Referent Power
Ability to
Influence
Others
Most E�ective Moderately E�ective
Influence Tactics
Least E�ective
Rational
Persuasion
Consultation
Inspirational
Appeals
Collaboration
Ingratiation
Personal Appeals
ExchangeApprising
Pressure
Coalitions
Applied in order to:
• Achieve organizational goals
• Navigate the political environment
• Engage in conflict resolution
• Negotiate outcomes
Most E�ective
Least E�ective
Internalization
Compliance
Resistance
Final PDF to printer
431C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 431 10/17/17 11:38 AM
FIGURE 13-7 Effects of Power and Influence on Performance and Commitment
Sources: R.T. Sparrowe, B.W. Soetjipto, and M.L. Kraimer, “Do Leaders’ Influence Tactics Relate to Members’ Helping
Behavior? It Depends on the Quality of the Relationship,” Academy of Management Journal 49 (2006), pp. 1194–1208;
G. Yukl, H. Kim, and C.M. Falbe, “Antecedents of Influence Outcomes,” Journal of Applied Psychology 81 (1996),
pp. 309–17; and P.P. Carson, K.D. Carson, and C.W. Rowe, “Social Power Bases: A Meta-Analytic Examination of Inter-
relationships and Outcomes,” Journal of Applied Social Psychology 23 (1993), pp. 1150–69.
Power and influence have a moderate positive e�ect on Performance. When used
e�ectively, they can increase internalization and compliance, which facilitates Task
Performance. The internalization and compliance facilitated by power and influence can
also increase Citizenship Behavior and decrease Counterproductive Behavior.
Power and influence can have a moderate positive e�ect on Commitment. The use
of personal forms of power, such as expert and referent, is associated with increased
A�ective Commitment. It should be noted, however, that more organizational forms
of power, or hard influence tactics, can decrease that form of commitment. Not much
is known about the impact of power and influence on Continuance Commitment or
Normative Commitment.
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
Power and
Influence
Power and
Influence
Job
Performance
Organizational
Commitment
job performance, however, it’s important to note that an ineffective use of power can also
decrease commitment levels. In particular, repeated uses of coercive power or repeated reliance
on hard inf luence tactics such as pressure or coalitions could actually decrease organizational
commitment levels.
A P P L I C AT I O N : A LT E R N AT I V E D I S P U T E R E S O LU T I O N
There is always the possibility that, despite a leader’s best effort, negotiations and/or conflict
management will result in an impasse between two parties. In many organizations, disputes that
might escalate into actual legal battles are settled through alternative dispute resolution.77 Alter-
native dispute resolution is a process by which two parties resolve conflicts through the use of a
specially trained, neutral third party. There are various types of alternative dispute resolution that
offer each party more or less control over the outcomes in question.78 Which types of resolution
are chosen are generally a function of time pressures, dispute intensity, and the type of conflict
involved.79 Two of the most common forms are mediation and arbitration.
Mediation requires a third party to facilitate the dispute resolution process, though this third
party has no formal authority to dictate a solution. In essence, a mediator plays the role of a
neutral, objective party who listens to the arguments of each side and attempts to help two par-
ties come to an agreement. In serious, potentially litigious situations, trained mediators offer a
Final PDF to printer
432 C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 432 10/17/17 11:38 AM
13.1 Leadership is the use of power and influence to direct the activities of followers toward
goal achievement. Power is the ability to influence the behavior of others and resist
unwanted influence in return. Power is necessary, in that it gives leaders the ability to influ-
ence others.
13.2 Leaders have five major types of power. There are three organizational forms of power:
Legitimate power is based on authority or position, reward power is based on the distribu-
tion of resources or benefits, and coercive power is based on the handing out of punish-
ments. There are two personal forms of power: Expert power is derived from expertise
and knowledge, whereas referent power is based on the attractiveness and charisma of the
leader. These types of power can be used most effectively when leaders are central to the
work process, highly visible, have discretion, and are the sole controllers of resources and
information.
13.3 Leaders can use at least 10 different influence tactics to achieve their objectives. The most
effective are rational persuasion, consultation, inspirational appeals, and collaboration.
The least effective are pressure and the forming of coalitions. Tactics with moderate levels
of effectiveness are ingratiation, exchange, personal appeals, and apprising.
13.4 Organizational politics are individual actions that are directed toward the goal of further-
ing a person’s own self-interests. Political behavior is most likely to occur in organizational
situations in which individual outcomes are uncertain.
13.5 Leaders use power and influence to resolve conflicts through five conflict resolution
styles: avoidance, competing, accommodating, collaborating, and compromising. The most
effective, and most difficult, tactic is collaboration.
TA K E AWAY S
relatively easy and quick way out of difficult disputes. A more definite form of alternative reso-
lution is the process of arbitration. Arbitration occurs when a third party determines a binding
settlement to a dispute. The arbitrator can be an individual or a group (board) whose job is to
listen to the various arguments and then make a decision about the solution to the conflict. In
some ways, arbitration is much riskier for both parties, because the outcome of the dispute rests
solely in the arbitrator’s hands. The arbitrator’s role isn’t to make everyone happy but rather to
arrive at the most equitable solution in his or her opinion. In conventional arbitrations, arbitrators
can create a solution of their choosing, mixing and matching available alternatives. In contrast, in
final-offer arbitration, each party presents its most fair offer, and the arbitrator chooses the offer
identified as most reasonable.
The two forms of alternative dispute resolution can be voluntary or mandatory, with many
companies starting to create policies that make alternative dispute resolution mandatory for
employees. However, there is some evidence that taking away the “voluntariness” of the process
lowers employees’ feelings of procedural justice (see Chapter 7).80
Of course, the goal of dispute resolution is always to have the two parties come to a volun-
tary agreement. Traditionally, mediation is the first step in alternative dispute resolution; if the
mediator cannot help the two parties come to an agreement, the process continues to arbitration.
Research suggests though that an opposite approach might lead to better results. That is, the two
parties undergo the arbitration process, and the arbitrator makes a decision, which is placed in a
sealed envelope. The two parties then go through the process of mediation; if they still can’t come
to an agreement, they turn to the arbiter’s decision. Flipping the order resulted in significantly
higher voluntary agreement rates between the two parties.81
Final PDF to printer
433C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 433 10/17/17 11:38 AM
K E Y T E R M S
• Leadership p. 412
• Power p. 412
• Legitimate power p. 413
• Reward power p. 413
• Coercive power p. 414
• Expert power p. 414
• Referent power p. 415
• Substitutability p. 416
• Discretion p. 416
• Centrality p. 416
• Visibility p. 416
• Influence p. 416
• Rational persuasion p. 417
• Inspirational appeal p. 417
• Consultation p. 418
• Collaboration p. 418
• Ingratiation p. 418
• Personal appeals p. 418
• Apprising p. 419
• Pressure p. 419
• Coalitions p. 419
• Exchange tactic p. 420
• Internalization p. 420
• Compliance p. 420
• Resistance p. 420
• Organizational politics p. 421
• Political skill p. 421
• Competing p. 423
• Avoiding p. 424
• Accommodating p. 424
• Collaboration p. 424
• Compromise p. 424
• Negotiation p. 426
• Distributive bargaining p. 426
• Integrative bargaining p. 426
• Preparation p. 428
• BATNA p. 428
• Exchanging information p. 428
• Bargaining p. 428
• Closing and commitment p. 428
• Alternative dispute resolution p. 431
• Mediation p. 431
• Arbitration p. 432
13.6 Leaders use both distributive and integrative bargaining strategies to negotiate outcomes.
The process of negotiating effectively includes four steps: preparation, exchanging informa-
tion, bargaining, and closing and commitment.
13.7 Power and influence have moderate positive relationships with job performance and
organizational commitment. However, for these beneficial effects to be realized, leaders
must wield their power effectively and rely on effective influence tactics in negotiating
outcomes.
13.1 Which forms of power do you consider to be the strongest? Which types of power do you
currently have? How could you go about obtaining higher levels of the forms that you’re
lacking?
13.2 Who is the most influential leader you have come in contact with personally? What
forms of power did they have, and which types of influence did they use to accomplish
objectives?
13.3 What would it take to have a “politically free” environment? Is that possible?
13.4 Think about the last serious conflict you had with a coworker or group member. How was
that conflict resolved? Which approach did you take to resolve it?
13.5 Think of a situation in which you negotiated an agreement. Which approach did you take?
Was it the appropriate one? How might the negotiation process have gone more smoothly?
D I S C U S S I O N Q U E S T I O N S
Final PDF to printer
434 C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 434 10/17/17 11:38 AM
As Zappos made its push toward holocracy, Hsieh decided to ramp up the efforts to an even
higher level: Teal. Hsieh sent out a 4,700 word e-mail to all employees entitled “Reinventing Zap-
pos: The Road to Teal.” Teal, supposed to be the next stage of development after holocracy, is
characterized as “A new kind of organization designed to enable ‘whole’ individuals (not narrow
professional selves) to self-organize and self-manage to achieve an organic organizational purpose.”
In the memo, Hsieh essentially told the remaining employees to get on board or get out. Hsieh was
not happy with the progress that had been made up to that point and wrote, “in order to eliminate
the legacy management hierarchy, there will be effectively no more people managers.” John Bunch,
the employee in charge of the move to teal says, “Teal is the goal; holocracy is the system.”
Hsieh even went as far as to offer the equivalent of three months’ worth of salary to employ-
ees who would quit the organization if they didn’t feel they could fit in. Over 200 employees
(14 percent) took him up on the offer—a massive number of people given Zappos’s normal turn-
over rate of 1 percent annually. Clearly, not everyone felt comfortable in an organization with no
clear leadership structure and very little to no legitimate power. One departed employee called
holocracy “a social experiment [that] created chaos and uncertainty.” Others felt like “more
employees are feeling like favoritism [and management issues are] becoming a bigger problem.”
CEO Tony Hsieh remains undaunted. Hsieh says, “The one thing I’m absolutely sure of is that
the future is about self-management.”
The move has not been bad for everyone. Less experienced individuals with less expertise
have felt energized by their ability to speak up and have a voice. One employee whose prior
boss blocked a job transfer stated that as soon as he figured holocracy out, “I was like, ‘Actually,
my boss can’t tell me that.’” Jake McCrea, who teaches new hires about Zappos culture, states,
“Holacracy is like a sport or a new language. You can read about it, you can hear people tell
you about it, you won’t understand it until you start using it.” Even through all the issues, Hsieh
stated, “I’ve been surprised at how hard it is to let go of the psychological baggage. In retrospect,
I would have probably ripped off the Band-Aid sooner.”
13.1 Can an organization run effectively without leaders having some form of organizational
power?
13.2 What types of influence would become more important under holocracy at Zappos?
13.3 Do you think leadership skills would be more or less important at Zappos under holoc-
racy? How so?
Sources: E. Bernstein, J. Bunch, N. Canner, and M. Lee, “Beyond the Holocracy Hype,” Harvard Business Review, July–
August 2016, pp. 38–49; R. Greenfield, “How Zappos Converts New Hires to Its Bizarre Office Culture,” Bloomberg
Online, June 30, 2015; A. Groth. “Zappos Is Struggling with Holocracy Because Humans Aren’t Designed to Operate Like
Software,” Quartz Online, December 21, 2016; https://qz.com/849980/zappos-is-struggling-with-holacracy-because-humans
-arent-designed-to-operate-like-software/; A. Groth, The Kingdom of Happiness: Inside Tony Hsieh’s Zapponian Utopia,
New York: Touchstone, 2017; and J. Reingold, “The Zappos Experiment,” Fortune, March 15, 2016, pp. 206–14.
C A S E : C A S E Z A P P O S
E X E R C I S E : LO B BY I N G F O R I N F LU E N C E
The purpose of this exercise is to give you experience in using influence tactics to modify the
behavior of others. Follow these steps:
13.1 During this exercise, your objective is to get other people in the class to give you their points.
If you get more than 50 percent of the total number of points distributed to the whole class,
you’ll win. Each person in the class has a different number of points, as shown in the class
Final PDF to printer
435C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 435 10/17/17 11:38 AM
list. You can keep or give away your points in whatever manner you choose, as long as you
follow the rules for each round of the process. There are five rounds, described next.
Round 1. In this round, you will write memos to your classmates. You can say whatever
you want in your memos, and write them to whomever you choose, but for the 10-minute
writing period, there will be no talking, only writing. You will deliver all your messages at
one time, at the end of the 10-minute writing period.
Round 2. In this round, you will respond in writing to the messages you received in the
first round. You can also write new memos as you see fit. Again, there is to be no talking!
At the end of 15 minutes, you can distribute your memos.
Round 3. In round 3, you can talk as much as you like. You will have 15 minutes to talk
with anyone about anything.
Round 4. In this round, you will create ballots to distribute your points any way you see
fit. To distribute your points, put a person’s name on an index card, along with the number
of points you want that person to have. If you choose to keep any of your points, put your
own name on the card, along with the number of points you want to keep. Do not hand in
your cards until asked to do so by your instructor.
Round 5. If there is no clear winner, round 5 will be used to repeat steps 3 and 4.
13.2 Class discussion (whether in groups or as a class) should focus on the following questions:
• What kinds of social influence attempts did you make during this exercise?
• How successful were you at influencing others to go along with you?
• What kinds of influence did others use on you?
• What was the most successful way you saw someone else use influence during the
memo-writing and discussion sections?
• What other factors determined how you voted?82
13.1 Yukl, G. Leadership in
Organizations,
7th ed. New York:
Peason, 2012.
13.2 Ibid.
13.3 McMurray, V.V.
“Some Unanswered
Questions on Orga-
nizational Conflict.”
Organization and
Administrative Sciences
6 (1975), pp. 35–53;
and Pfeffer, J. Manag-
ing with Power. Boston:
Harvard Business
School Press, 1992.
13.4 Cotton, J.L. “Measure-
ment of Power-
Balancing Styles
and Some of Their
Correlates.” Adminis-
trative Science Quarterly
21 (1976), pp. 307–19;
and Emerson, R.M.
“Power-Dependence
Relationships.” Ameri-
can Sociological Review
27 (1962), pp. 29–41.
13.5 Ashforth, B.E., and
F.A. Mael. “The
Power of Resistance.”
In Power and Influence
in Organizations, ed.
R.M. Kramer and
M.E. Neal. Thousand
Oaks, CA: Sage, 1998,
pp. 89–120.
13.6 French, J.R.P. Jr.,
and B. Raven. “The
Bases of Social
Power.” In Studies
in Social Power, ed.
D. Cartwright. Ann
Arbor: University of
Michigan, Institute for
Social Research, 1959,
pp. 150–67; and Yukl,
G., and C.M. Falbe.
“The Importance
of Different Power
Sources in Downward
and Lateral Rela-
tions.” Journal of
Applied Psychology 76
(1991), pp. 416–23.
13.7 Yukl, G. “Use Power
Effectively.” In
Handbook of Principles
of Organizational
Behavior, ed. E.A.
Locke. Malden, MA:
E N D N OT E S
Final PDF to printer
436 C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 436 10/17/17 11:38 AM
Blackwell, 2004,
pp. 242–47.
13.8 Source: Rao, L. “Apple
Retail Chief Angela
Ahrendts on Turning
Stores Into Town
Squares.” Fortune.com,
October 17, 2016
13.9 Source: Tedlow, R.S.
“The Education of
Andy Grove.” Fortune,
March 22, 2016,
pp. 117–38.
13.10 French and Raven,
“The Bases of Social
Power.”
13.11 Reingold, J. “The
Zappos Experiment.”
Fortune, March 15,
2016, pp. 206–14.
13.12 Hickson, D.J.; C.R.
Hinings; C.A. Lee;
R.E. Schneck; and
J.M. Pennings. “A
Strategic Contingen-
cies Theory of Intraor-
ganizational Power.”
Administrative Science
Quarterly 16 (1971),
pp. 216–27; Hinings,
C.R.; D.J. Hickson;
J.M. Pennings; and
R.E. Schneck. “Struc-
tural Conditions of
Intraorganizational
Power.” Administrative
Science Quarterly 19
(1974), pp. 22–44;
and Salancik, G.R.,
and J. Pfeffer. “Who
Gets Power and How
They Hold On to It: A
Strategic Contingency
Model of Power.”
Organizational Dynam-
ics 5 (1977), pp. 3–21.
13.13 Dvorak, P. “Theory
and Practice: Engi-
neering Firm Charts
Ties—Social-Mapping
Helps MWH Uncover
Gaps.” The Wall Street
Journal, January 26,
2009, p. 7; McGregor,
J. “The Office Chart
That Really Counts.”
BusinessWeek,
February 27, 2006,
pp. 48–49.
13.14 Dvorak, “Theory and
Practice”; Green, H.
“Google: Harnessing
the Power of Cliques.”
BusinessWeek, Octo-
ber 6, 2008, p. 50;
and Rusli, E.M. “Your
New Secretary: An
Algorithm.” The Wall
Street Journal, June
13, 2013, p. B6.
13.15 Somech, A., and
A. Drach-Zahavy.
“Relative Power and
Influence Strategy:
The Effects of Agent/
Target Organizational
Power on Superiors’
Choices of Influence
Strategies.” Journal
of Organizational
Behavior 23 (2002),
pp. 167–79; and
Stahelski, A.J., and
C.F. Paynton. “The
Effects of Status Cues
on Choices of Social
Power and Influence
Strategies.” Journal of
Social Psychology 135
(1995), pp. 553–60.
13.16 Yukl, G. Leadership in
Organizations, 4th ed.
Englewood Cliffs, NJ:
Prentice Hall, 1998.
13.17 Yukl, G.; C. Chavez;
and C.F. Seifert.
“Assessing the Con-
struct Validity and
Utility of Two New
Influence Tactics.”
Journal of Organiza-
tional Behavior 26
(2005), pp. 705–25;
and Yukl, G. Leader-
ship in Organizations,
5th ed. Upper Saddle
River, NJ: Prentice
Hall, 2002.
13.18 Lee, S., Han, S.,
Cheong, M., Kim,
S.L., and S. Yun.
“How Do I Get My
Way? A Meta-Analytic
Review of Research
on Influence Tactics.”
The Leadership Quar-
terly 20 (2017),
pp. 210–28.
13.19 Yukl, G.; H. Kim;
and C. Chavez.
“Task Importance,
Feasibility, and Agent
Influence Behavior as
Determinants of Target
Commitment.” Journal
of Applied Psychology
84 (1999), pp. 137–43.
13.20 Yukl (1998), Leader-
ship in Organizations.
13.21 Source: Manjoo, F.
“The Quest: How New
CEO Larry Page Will
Lead the Company
He Cofounded into
the Future.” Fast
Company, April 2011,
pp. 68–76.
13.22 Groth, A., The King-
dom of Happiness:
Inside Tony Hsieh’s
Zapponian Utopia,
New York: Touch-
stone, 2017.
13.23 Yukl et al., “Task
Importance.”
13.24 Source: Lev-Ram,
M. “Getting Past the
Big Blues.” Fortune,
October 6, 2014,
pp. 92–100.
13.25 Wayne, S.J., and G.R.
Ferris. “Influence
Tactics, Affect, and
Final PDF to printer
437C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 437 10/17/17 11:38 AM
Exchange Quality in
Supervisor–Subordinate
Interactions: A Labo-
ratory Experiment
and Field Study.”
Journal of Applied
Psychology 75 (1990),
pp. 487–99.
13.26 Kelman, H.C. “Compli-
ance, Identification,
and Internalization:
Three Processes of Atti-
tude Change.” Journal
of Conflict Resolution 2
(1958), pp. 51–56.
13.27 Yukl et al., “Assess-
ing the Construct
Validity.”
13.28 Falbe, C.M., and G.
Yukl. “Consequences
for Managers of Using
Single Influence Tac-
tics and Combinations
of Tactics.” Academy
of Management
Journal 35 (1992),
pp. 638–52.
13.29 Source: Berfield, S.,
and M. Arndt.
“Kraft’s Sugar Rush.”
Bloomberg Businessweek,
January 25, 2010,
pp. 36–39.
13.30 Yukl (2012), Leader-
ship in Organizations.
13.31 Ibid.
13.32 Somech and Drach-
Zahavy, “Relative
Power and Influence
Strategy”; Yukl
(2002), Leadership
in Organizations; and
Yukl, “Use Power
Effectively.”
13.33 Ferris, G.R., and W.A.
Hochwarter. “Orga-
nizational Politics.”
In APA Handbook of
Industrial and Orga-
nizational Psychology,
Vol. 3, ed. S. Zedeck.
Washington, DC:
American Psychologi-
cal Association, 2011,
pp. 435–59; and
Mintzberg, H. “The
Organization as Politi-
cal Arena.” Journal of
Management Studies
22 (1985),
pp. 133–54.
13.34 Source: Bryan-Low, C.,
and J. Singer.
“Vodafone Group Life
President Resigns over
Management Flap.”
The Wall Street Journal,
March 13, 2006, p. B3.
13.35 Reingold, “How a
Radical Shift Left
Zappos Reeling.”
13.36 Bacharach, S.B., and
E.J. Lawler. “Political
Alignments in Organi-
zations.” In Power and
Influence in Organiza-
tions, ed. R.M. Kramer
and M.E. Neal.
Thousand Oaks, CA:
Sage, 1998, pp. 67–88.
13.37 Kacmar, K.M., and
R.A. Baron. “Organi-
zational Politics: The
State of the Field,
Links to Related Pro-
cesses, and an Agenda
for Future Research.”
In Research in Per-
sonnel and Human
Resources Manage-
ment, Vol. 17, ed. G.R.
Ferris. Greenwich,
CT: JAI Press, 1999,
pp. 1–39.
13.38 Ferris, G.R.; D.C.
Treadway; P.L. Per-
rewe; R.L. Brouer;
C. Douglas; and S.
Lux. “Political Skill in
Organizations.” Jour-
nal of Management 33
(2007), pp. 290–320;
and Treadway, D.C.;
G.R. Ferris; A.B.
Duke; G.L. Adams;
and J.B. Thatcher.
“The Moderating
Role of Subordinate
Political Skill on
Supervisors’ Impres-
sions of Subordinate
Ingratiation and Rat-
ings of Subordinate
Interpersonal Facili-
tation.” Journal of
Applied Psychology 92
(2007), pp. 848–55.
13.39 Seldman, M., and E.
Betof. “An Illuminated
Path.” T & D 58
(2004), pp. 34–39.
13.40 Ferris, G.R.; D.C.
Treadway; R.W.
Kolokinsky; W.A.
Hochwarter; C.J.
Kacmar; and D.D.
Frink. “Development
and Validation of the
Political Skill Inven-
tory.” Journal of Man-
agement 31 (2005),
pp. 126–52.
13.41 Ferris et al., “Political
Skill in Organiza-
tions”; and Ferris
et al., “Development
and Validation.”
13.42 Bing, M.H.; H.K.
Davison; I. Minor;
M.M. Novicevik; and
D.D. Frink. “The
Prediction of Task
and Contextual Perfor-
mance by Political
Skill: A Meta-Analysis
and Moderator Test.”
Journal of Vocational
Behavior 79 (2011),
pp. 563–77.
13.43 Ferris, G.R.; D.D.
Frink; D.P.S. Bhawuk;
J. Zhou; and D.C.
Final PDF to printer
438 C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 438 10/17/17 11:38 AM
Gilmore. “Reactions
of Diverse Groups
to Politics in the
Workplace.” Journal
of Management 22
(1996), pp. 23–44.
13.44 Chang, C.; C.C.
Rosen; and P.E. Levy.
“The Relationship
between Perceptions
of Organizational
Politics and Employee
Attitudes, Strain,
and Behavior: A
Meta-Analytic
Examination.” Acad-
emy of Management
Journal 52 (2009),
pp. 779–801; Kacmar
and Baron, “Organiza-
tional Politics”; Miller,
B.K.; M. A. Ruther-
ford; and R. W. Kolo-
dinsky. “Perceptions
of Organizational
Politics: A Meta-
Analysis of Out-
comes.” Journal
of Business and
Psychology 22 (March
2008), pp. 209–22;
Hochwarter, W.A.
“The Interactive
Effects of Pro-Political
Behavior and Politics
Perceptions on Job
Satisfaction and Com-
mitment.” Journal
of Applied Social
Psychology 33 (2003),
pp. 1360–78; Randall,
M.L.; R. Cropanzano;
C.A. Bormann; and
A. Birjulin. “Orga-
nizational Politics
and Organizational
Support as Predictors
of Work Attitudes,
Job Performance,
and Organiza-
tional Citizenship
Behavior.” Journal
of Organizational
Behavior 20 (1999),
pp. 159–74; and Witt,
L.A. “Enhancing
Organizational Goal
Congruence: A Solu-
tion to Organizational
Politics.” Journal of
Applied Psychology 83
(1998), pp. 666–74.
13.45 Eisenhardt, K.M.,
and L.J. Bourgeois.
“Politics of Strategic
Decision Making in
High-Velocity Envi-
ronments: Toward a
Midrange Theory.”
Academy of Manage-
ment Journal 31
(1988), pp. 737–70.
13.46 Atinc, G.; M. Darrat;
B. Fuller; and B.W.
Parker. “Perceptions
of Organizational
Politics: A Meta-
Analysis of Theo-
retical Antecedents.”
Journal of Managerial
Issues 22 (2010), pp.
494–513; Biberman,
G. “Personality and
Characteristic Work
Attitudes of Persons
with High, Moderate,
and Low Political Ten-
dencies.” Psychological
Reports 60 (1985),
pp. 1303–10; Ferris
et al., “Reactions of
Diverse Groups”;
and O’Connor, W.E.,
and T.G. Morrison.
“A Comparison of
Situational and
Dispositional Predic-
tors of Perceptions
of Organizational
Politics.” Journal of
Psychology 135 (2001),
pp. 301–12.
13.47 O’Boyle, E.H.; D.R.
Forsyth; G.C. Banks;
and M.A. McDaniel.
“A Meta-Analysis of
the Dark Triad and
Work Behavior: A
Social Exchange Per-
spective.” Journal of
Applied Psychology 97
(2012), pp. 557–79;
and Valle, M., and
P.L. Perrewe. “Do
Politics Perceptions
Relate to Political
Behaviors? Tests of
an Implicit Assump-
tion and Expanded
Model.” Human
Relations 53 (2000),
pp. 359–86.
13.48 Fandt, P.M., and G.R.
Ferris. “The Manage-
ment of Information
and Impressions:
When Employees
Behave Opportunisti-
cally.” Organizational
Behavior and Human
Decision Processes 45
(1990), pp. 140–58;
O’Connor and Mor-
rison, “A Comparison
of Situational and Dis-
positional Predictors”;
and Poon, J.M.L.
“Situational Anteced-
ents and Outcomes
of Organizational
Politics Perceptions.”
Journal of Managerial
Psychology 18 (2003),
pp. 138–55.
13.49 Atinc et al., “Percep-
tions of Organiza-
tional Politics.”
13.50 Lewicki, R.J., and J.A.
Litterer. Negotiations.
Homewood, IL: Irwin,
1985; and Thomas,
K.W. “Conflict and
Negotiation Processes
in Organizations.” In
Handbook of Industrial
and Organizational
Psychology. 2nd ed.,
Vol. 3, ed. M.D.
Dunnette and L.M.
Hough. Palo Alto, CA:
Final PDF to printer
439C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 439 10/17/17 11:38 AM
Consulting Psycholo-
gists Press,
pp. 651–717.
13.51 Weingart, L., and
K.A. Jehn. “Manage
Intra-Team Conflict
through Collabora-
tion.” In Handbook of
Principles of Organi-
zational Behavior, ed.
E.A. Locke. Malden,
MA: Blackwell, 2004,
pp. 226–38.
13.52 Thomas, K.W.
“Toward Multi-
Dimensional Values
in Teaching: The
Example of Conflict
Behaviors.” Academy
of Management Review
2 (1977), pp. 484–90;
and de Dreu, C.K.W.;
A. Evers; B. Beersma;
E.S. Kluwer; and A.
Nauta. “A Theory-
Based Measure of
Conflict Management
Strategies in the
Workplace.” Journal
of Organizational
Behavior 22 (2001),
pp. 645–68.
13.53 Holt, J.L., and C.J.
DeVore. “Culture,
Gender, Organiza-
tional Role, and Styles
of Conflict Resolu-
tion: A Meta-
Analysis.” Interna-
tional Journal of Inter-
cultural Relations 29
(2005), pp. 165–96.
13.54 Schlareth, A.; N.
Ensari; and J.
Christian. “A Meta-
Analytical Review
of the Relationship
between Emotional
Intelligence and Lead-
ers’ Constructive Con-
flict Management.”
Group Processes and
Intergroup Relations 16
(2013), pp. 126–36.
13.55 de Dreu, C.K.W. “Con-
flict at Work: Basic
Principles and Applied
Issues.” In APA Hand-
book for Industrial and
Organizational Psychol-
ogy, Vol. 3, ed. S.
Zedeck. Washington,
DC: American Psycho-
logical Association,
2011, pp. 461–93.
13.56 Balliet, D., and
P.A.M. Van Lange.
“Trust, Conflict,
and Cooperation: A
Meta-Analysis.” Psy-
chological Bulletin 139
(2013), pp. 1090–112.
13.57 MacMilan, D., and
L. Fleisher. “How
Sharp Elbowed Uber
Is Trying to Make
Nice.” The Wall Street
Journal, January 29,
2015.
13.58 Swisher, K. “Man and
Uber Man.” Vanity
Fair, December 2014,
p. 146.
13.59 Source: MacMillan,
Douglas, and Lisa
Fleisher. “How
Sharp-Elbowed Uber
Is Trying to Make
Nice.” The Wall Street
Journal (2015).
13.60 Ibid.
13.61 Malhotra, D., and
M.H. Bazerman.
“Psychological Influ-
ence in Negotiation:
An Introduction Long
Overdue.” Journal
of Management 34
(2008), pp. 509–31.
13.62 Bazerman, M.H., and
M.A. Neale. Negotiat-
ing Rationally. New
York: The Free Press,
1992; and Pinkley,
R.L.; T.L. Griffeth;
and G.B. Northcraft.
“Fixed Pie a la Mode:
Information Avail-
ability, Information
Processing, and
the Negotiation of
Suboptimal Agree-
ments.” Organizational
Behavior and Human
Decision Processes 50
(1995), pp. 101–12.
13.63 Pinkley et al., “Fixed
Pie a la Mode.”
13.64 Kolb, D.M., and J.
Williams. “Break-
through Bargaining.”
Harvard Business
Review, February
2001, pp. 88–97.
13.65 Pinkley et al., “Fixed
Pie a la Mode.”
13.66 Based on Pruitt, D.G.
“Achieving Integrative
Agreements in Nego-
tiation.” In Psychology
and the Prevention
of the Nuclear War,
ed. R.K. White. New
York: Columbia Uni-
versity Press, 1986,
pp. 463–78.
13.67 Thomas, “Conflict and
Negotiation Processes.”
13.68 Source: Terlep, S.
“Ergen Keeps Rivals
Guessing.” The Wall
Street Journal, June
12, 2013, p. 83.
13.69 Based on Shell, R. Bar-
gaining for Advantage:
Negotiation Strategies
for Reasonable People,
2nd ed. New York:
Penguin Books, 2006.
13.70 Fisher, R., and W.
Ury. Getting to Yes:
Negotiating Agreement
Final PDF to printer
440 C H A P T E R 1 3 Leadership: Power and Negotiation
coL27660_ch13_410-441.indd 440 10/17/17 11:38 AM
Without Giving In.
New York: Penguin
Books, 1991.
13.71 Shell, Bargaining for
Advantage.
13.72 Gelfand, M.J.; A.
Fulmer; and L. Sever-
ance. “The Psychol-
ogy of Negotiation
and Mediation.” In
APA Handbook for
Industrial and Orga-
nizational Psychology,
Vol. 3, ed. S. Zedeck.
Washington, DC:
American Psychologi-
cal Association, 2011,
pp. 495–554.
13.73 Ibid.
13.74 Barry, B., and R.L.
Oliver. “Affect in
Dyadic Negotiation:
A Model and Proposi-
tions.” Organizational
Behavior and Human
Decision Processes 67
(1996), pp. 127–43.
13.75 Gelfand, “The
Psychology of
Negotiation and
Mediation.”
13.76 Ibid.
13.77 Roche, W.K., and P.
Teague. “The Grow-
ing Importance of
Workplace ADR.”
International Journal
of Human Resource
Management 23
(2012), pp. 447–58.
13.78 Nugent, P.S. “Manag-
ing Conflict: Third-
Party Interventions for
Managers.” Academy
of Management Execu-
tive 16 (2002), pp.
139–54.
13.79 Goldman, B.M.;
R. Cropanzano; J.
Stein; and L. Benson.
“The Role of Third
Parties/Mediation in
Managing Conflict in
Organizations.” In The
Psychology of Conflict
and Conflict Manage-
ment in Organizations,
ed. C.K.W. de Dreu
and M.J. Gelfand.
New York: Erlbaum,
2008, pp. 291–319.
13.80 Bernardin, H.J.; B.E.
Richey; and S.L. Cas-
tro. “Mandatory and
Binding Arbitration:
Effects on Employee
Attitudes and Recruit-
ing Results.” Human
Resource Management
50 (2011),
pp. 175–200.
13.81 Conlon, D.E.; H.
Moon; and K.Y. Ng.
“Putting the Cart
Before the Horse: The
Benefits of Arbitrating
Before Mediating.”
Journal of Applied
Psychology 87 (2002),
pp. 978–84.
13.82 Adapted from “Voting
for Dollars.” In the
Instructor’s Manual
for Whetten, D.A.,
and K.S. Cameron.
Developing Manage-
ment Skills, 7th ed.
Englewood Cliffs, NJ:
Prentice Hall, 2007.
Final PDF to printer
coL27660_ch13_410-441.indd 441 10/17/17 11:38 AM
Final PDF to printer
coL27660_ch14_442-478.indd 442 10/17/17 11:41 AM
14
LEARNING GOALS
14.1 What is leadership and what does it mean for a leader to be “effective”?
14.2 What traits and characteristics are related to leader emergence and leader effectiveness?
14.3 What four styles can leaders use to make decisions, and what factors combine to make these styles
more effective in a given situation?
14.4 What two dimensions capture most of the day-to-day leadership behaviors in which leaders engage?
14.5 How does transformational leadership differ from transactional leadership, and which behaviors set it
apart?
14.6 How does leadership affect job performance and organizational commitment?
14.7 Can leaders be trained to be more effective?
After reading this chapter, you should be able to answer the following questions:
Leadership: Styles
and Behaviors
INDIVIDUAL
OUTCOMES
INDIVIDUAL
MECHANISMS
INDIVIDUAL
CHARACTERISTICS
ORGANIZATIONAL
MECHANISMS
Motivation
Trust, Justice,
& Ethics
Teams:
Characteristics &
Diversity
Learning &
Decision Making
Stress
Job
Satisfaction
Leadership:
Styles &
Behaviors
Organizational
Commitment
Job
Performance
GROUP
MECHANISMS
Ability
Personality &
Cultural Values
Teams:
Processes &
Communication
Leadership:
Power &
Negotiation
Organizational
Culture
Organizational
Structure
Final PDF to printer
coL27660_ch14_442-478.indd 443 10/17/17 11:41 AM
M
ary Barra, 55, has topped Fortune’s list of most
powerful women for two years in a row. As CEO
and Board Chairman of General Motors, she is ulti-
mately responsible for the leadership of an organization
with over 200,000 employees and $160 billion in revenue
in 2016. It’s quite a daunting task, but Barra seems to be
perfectly made for it so far. Barra took over the company
shortly after GM declared bankruptcy and had to take a gov-
ernment bailout in order to survive. She stepped in right as
GM had to fight through the recall of 2.6 million cars due to
a faulty ignition switch that was responsible for 21 deaths
and more than 500 injuries. Barra was placed front and
center testifying before Congress while being questioned
about the dysfunctional culture at GM. Most believe she
handled herself incredibly well, primarily by being open and
honest about the safety scandal both inside and outside the
company—even going so far as to commission an indepen-
dent investigation (which resulted in a number of firings and
early retirements).
Known for having a collaborative leadership style, Barra
is not one to shirk from issues and encourages those around
her to tackle things head on. She says, “I want bad news—
the sooner the better. I want it when the person closest to it
realizes there’s a problem. Almost every problem at the start
is solvable. The longer it takes to solve, the higher it gets in
the organization and the bigger the problem gets.” Barra,
who has spent 36 years at GM (she started when she was
18), partly developed her leadership skills during her early
career in factory management. Some believe the reason
she’s been successful is a controlled ego—the exact oppo-
site of many of her predecessors. Barra is willing to share
credit when it is deserved, which has allowed her to hang
on to the upper level executives that were competing with
her for the CEO job. Some say she’s assembled the best
management team in GM’s history.
One of Barra’s major gifts has been the ability to inspire
accountability inside a culture that has been known for the
exact opposite. Barra, speaking to a room full of newly pro-
moted executives, said, “Remember your whole career, how
you’ve been talking about them? If only they would get it? If
only they would work this out? Well, you are now they. If you
don’t like something, you have to talk to yourself.”
GENERAL MOTORS
©Rachel Woolf/Getty Images News/Getty Images
Final PDF to printer
444 C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 444 10/17/17 11:41 AM
L E A D E R S H I P : S T Y L E S A N D B E H AV I O R S
This is the second of two chapters on leadership, defined as the use of power and influence to
direct the activities of followers toward goal achievement.1 That direction can affect followers’
interpretation of events, the organization of their work activities, their commitment to key goals,
their relationships with other followers, or their access to cooperation and support from other
work units.2 The last chapter described how leaders get the power and influence needed to direct
others. In the case of Mary Barra, her power derives from her formal role as GM’s CEO, her
expertise, and her charisma. This chapter describes how leaders actually use their power and influ-
ence in an effective way. Although she’s worked for GM her entire 35-year career, Barra has a clear
vision of what GM can be in the future.
Of course, most leaders can’t judge their performance by pointing to how many cars they’ve
sold (over 10 million per year) or how long they’ve worked for a company. Fortunately, leader
effectiveness can be gauged in a number of ways. Leaders might be judged by objective evaluations
of unit performance, such as profit margins, market share, sales, returns on investment, produc-
tivity, quality, costs in relation to budgeted expenditures, and so forth.3 If those sorts of indices
are unavailable, the leader’s superiors may judge the performance of the unit on a more subjec-
tive basis. Other approaches to judging leader effectiveness center more on followers, including
indices such as absenteeism, retention of talented employees, grievances filed, requests for trans-
fer, and so forth.4 Those sorts of indices can be complemented by employee surveys that assess
the perceived performance of the leader, the perceived respect and legitimacy of the leader, and
employee commitment, satisfaction, and psychological well-being. The top panel of Table 14-1
provides one example of these sorts of measures.
One source of complexity when judging leader effectiveness, particularly with more subjec-
tive, employee-centered approaches, is “Whom do you ask?” The members of a given unit often
disagree about how effective their leader is. Leader–member exchange theory, which describes
how leader–member relationships develop over time on a dyadic basis, can explain why those
differences exist.5 The theory argues that new leader–member relationships are typically marked
by a role taking phase, during which a manager describes role expectations to an employee and
the employee attempts to fulfill those expectations with his or her job behaviors.6 In this period
of sampling and experimentation, the leader tries to get a feel for the talent and motivation lev-
els of the employee. For some employees, that initial role taking phase may eventually be supple-
mented by role making, during which the employee’s own expectations for the dyad get mixed
in with those of the leader.7 The role making process is marked by a free-flowing exchange in
which the leader offers more opportunities and resources and the employee contributes more
activities and effort.
Over time, the role taking and role making processes result in two general types of leader–
member dyads, as shown in Figure 14-1. One type is the “high-quality exchange” dyad, marked
by the frequent exchange of information, inf luence, latitude, support, and attention. Those
dyads form the leader’s “ingroup” and are characterized by higher levels of mutual trust,
respect, and obligation.8 The other type is the “low-quality exchange” dyad, marked by a more
limited exchange of information, inf luence, latitude, support, and attention. Those dyads form
the leader’s “outgroup” and are characterized by lower levels of trust, respect, and obligation.9
Tests of the theory suggest that employees who are competent, likable, and similar to the leader
in personality will be more likely to end up in the leader’s ingroup; those factors have even
greater impact than age, gender, or racial similarity.10 These ingroup relationships can be very
powerful attachments for some workers. Research suggests that employees are less likely to
leave an organization when they have a high LMX relationship with a specific leader, but they
are more likely to leave following a leadership succession.11 Leader–member exchange theory
also suggests that judgments of leader effectiveness should gauge how effective the most criti-
cal leader–member dyads appear to be. The bottom panel of Table 14-1 provides one example
14.1
What is leadership and
what does it mean for a
leader to be “effective”?
Final PDF to printer
445C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 445 10/17/17 11:41 AM
of this sort of measure, with more agreement indicating a higher-quality exchange relationship
and thus higher levels of leader effectiveness on a dyadic basis.12 Recent meta-analyses have
found that employees with higher-quality exchange relationships have higher levels of job per-
formance and exhibit more organizational citizenship behaviors and fewer counterproductive
behaviors on average.13 It should be noted, though, that the development of high LMX relation-
ships has proven to be more effective in individualistic (Western) cultures than in collectivistic
(Asian) cultures.14
TABLE 14-1 Employee-Centered Measures of Leader Effectiveness
Unit-Focused Approach
Ask all members of the unit to fill out the following survey items, then average the
responses across the group to get a measure of leader effectiveness.
1. My supervisor is effective in meeting our job-related needs.
2. My supervisor uses methods of leadership that are satisfying.
3. My supervisor gets us to do more than we expected to do.
4. My supervisor is effective in representing us to higher authority.
5. My supervisor works with us in a satisfactory way.
6. My supervisor heightens our desire to succeed.
7. My supervisor is effective in meeting organizational requirements.
8. My supervisor increases our willingness to try harder.
9. My supervisor leads a group that is effective.
Dyad-Focused Approach
Ask members of the unit to fill out the following survey items in reference to their particular
relationship with the leader. The responses are not averaged across the group; rather, differ-
ences across people indicate differentiation into “ingroups” and “outgroups” within the unit.
1. I always know how satisfied my supervisor is with what I do.
2. My supervisor understands my problems and needs well enough.
3. My supervisor recognizes my potential.
4. My supervisor would use his/her power to help me solve work problems.
5. I can count on my supervisor to “bail me out” at his/her expense if I need it.
6. My working relationship with my supervisor is extremely effective.
7. I have enough confidence in my supervisor to defend and justify his/her decisions when
he/she is not present to do so.
Sources: Adapted from B. Bass and B. Avolio, MLQ Manual (Menlo Park, CA: Mind Garden, Inc., 2004); and G.B.
Graen and M. Uhl-Bien, “Relationship-Based Approach to Leadership: Development of Leader–Member Exchange
(LMX) Theory of Leadership over 25 Years: Applying a Multi-Level Multi-Domain Perspective,” Leadership Quarterly 6
(1995), pp. 219–47.
Final PDF to printer
446 C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 446 10/17/17 11:41 AM
FIGURE 14-1 Leader–Member Exchange Theory
High-Quality
Exchange (ingroup)
Low-Quality
Exchange (outgroup)
MEMBER
MEMBER
MEMBER
MEMBER
LEADER
Leader “Ingroups” have:
Greater mutual trust
Greater respect
Higher felt obligation
W H Y A R E S O M E L E A D E R S M O R E
E F F E C T I V E T H A N OT H E R S ?
For our purposes, leader effectiveness will be defined as the degree to which the leader’s actions
result in the achievement of the unit’s goals, the continued commitment of the unit’s employees,
and the development of mutual trust, respect, and obligation in leader–member dyads. Now
that we’ve described what it means for a leader to be effective, we turn to the critical question
in this chapter: “Why are some leaders more effective than others?” That is, why exactly are
some leaders viewed as more effective on a unitwide basis, and why exactly are some leaders
better at fostering high-quality exchange relationships? Beginning as far back as 1904, research
on leadership has attempted to answer such questions by looking for particular traits or charac-
teristics of effective leaders.15 The search for traits and characteristics is consistent with “great
person” theories of leadership that suggest that “leaders are born, not made.”16 Early research
in this area frequently focused on physical features (e.g., gender, height, physical attractiveness,
energy level), whereas subsequent research focused more squarely on personality and ability
(see Chapter 9 on personality and cultural values and Chapter 10 on ability for more discussion
of such issues).
After a century of research, leadership scholars now acknowledge that there is no generalizable
profile of effective leaders from a trait perspective.17 In fact, most studies have concluded that
traits are more predictive of leader emergence (i.e., who becomes a leader in the first place) than
they are of leader effectiveness (i.e., how well people actually do in a leadership role). Table 14-2
reviews some of the traits and characteristics that have been found to be correlated with leader
emergence and leader effectiveness. Although a number of traits and characteristics are relevant
to leadership, two limitations of this work have caused leadership research to move in a differ-
ent direction. First, many of the trait–leadership correlations are weak in magnitude, particularly
when leader effectiveness serves as the outcome. Second, the focus on leader traits holds less prac-
tical relevance than a focus on leader actions. Although research shows that traits can seemingly
have an effect on leader effectiveness, these effects are generally explained much more strongly by
leader behavior.18 What exactly can leaders do that can make them more effective? This chapter
14.2
What traits and character-
istics are related to leader
emergence and leader
effectiveness?
Final PDF to printer
447C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 447 10/17/17 11:41 AM
TABLE 14-2 Traits/Characteristics Related to Leader Emergence
and Effectiveness
DESCRIPTION OF TRAIT/
CHARACTERISTIC LINKED TO EMERGENCE? LINKED TO EFFECTIVENESS?
High conscientiousness √
Low agreeableness √
Low neuroticism
High openness to experience √ √
High extraversion √ √
High general cognitive ability √ √
High energy level √ √
High stress tolerance √ √
High self-confidence √ √
reviews three types of leader actions: decision-making styles, day-to-day behaviors, and behaviors
that fall outside of a leader’s typical duties.
L E A D E R D E C I S I O N – M A K I N G ST Y L E S
Of course, one of the most important things leaders do is make decisions. Think about the job
you currently hold or the last job you had. Now picture your boss. How many decisions did he or
she have to make in a given week? How did he or she go about making those decisions? A leader’s
decision-making style reflects the process the leader uses to generate and choose from a set of
alternatives to solve a problem (see Chapter 8 on learning and decision making for more discus-
sion of such issues). Decision-making styles capture how a leader decides as opposed to what a
leader decides.
The most important element of a leader’s decision-making style is this: Does the leader decide
most things for him- or herself, or does the leader involve others in the process? We’ve probably all
had bosses (or professors, or even parents) who made virtually all decisions by themselves, stop-
ping by to announce what had happened once the call had been made. We’ve probably also had
other bosses (or professors, or parents) who tended to do the opposite—involving us, asking our
opinions, or seeking our vote even when we didn’t care about what was being discussed. It turns
out that this issue of leader versus follower control can be used to define some specific decision-
making styles. Figure 14-2 shows those styles, arranged on a continuum from high follower control
to high leader control.
DEFINING THE STYLES With an autocratic style, the leader makes the decision alone without
asking for the opinions or suggestions of the employees in the work unit.19 The employees may
provide information that the leader needs but are not asked to generate or evaluate potential
solutions. In fact, they may not even be told about the decision that needs to be made, knowing
only that the leader wants information for some reason. Unlike Mary Barra at GM, this decision-
making style seems to be a favorite of Fiat-Chrysler CEO Sergio Marchionne, who is doing his
best to make sure decisions are made extraordinarily quickly at Chrysler—and he’s doing that by
14.3
What four styles can lead-
ers use to make decisions,
and what factors combine
to make these styles
more effective in a given
situation?
Sources: Adapted from T.A. Judge, J.E. Bono, R. Ilies, and M.W. Gerhardt, “Personality and Leadership: A Qualitative
and Quantitative Review,” Journal of Applied Psychology 87 (2002), pp. 765–80; T.A. Judge, A.E. Colbert, and R. Ilies,
“Intelligence and Leadership: A Quantitative Review and Test of Theoretical Propositions,” Journal of Applied Psychology
89 (2004), pp. 542–52; and G. Yukl, Leadership in Organizations, 4th ed. (Englewood Cliffs, NJ: Prentice Hall, 1998)
Final PDF to printer
448 C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 448 10/17/17 11:41 AM
making them himself. Marchionne has flattened Chrysler’s organizational chart with him at the
top and has 25 direct reports (not counting 21 at Fiat). One might think this would cause a major
bottleneck with regard to decisions, but Marchionne swears that speed is the only thing that will
save Chrysler at this point and he is always within reach through the use of one of his six Black-
Berrys. Marchionne says, “BlackBerrys are divine instruments. They [his direct reports] have
access to me 24/7.” The CEO is known for making decisions within minutes, or seconds.20
The next two styles in Figure 14-2 offer more employee involvement. With a consultative style,
the leader presents the problem to individual employees or a group of employees, asking for their
opinions and suggestions before ultimately making the decision him- or herself.21 With this style,
employees do “have a say” in the process, but the ultimate authority still rests with the leader.
Bob Brennan, ex-CEO of Iron Mountain, a $3 billion information management services company
headquartered in Boston, says, “I ask this question a lot in different situations: ‘What do you rec-
ommend we do?’ You can get a real sense for who’s invested in moving the company forward, and
who’s watching the company go by, with that very simple question. People lay out problems all the
time. If they’ve thought through what should be done from here, then you’ve got somebody who’s
in the game, who wants to move, and you can unlock that potential.”22
That ultimate authority changes with a facilitative style, in which the leader presents the problem
to a group of employees and seeks consensus on a solution, making sure that his or her own opinion
receives no more weight than anyone else’s.23 With this style, the leader is more facilitator than deci-
sion maker. Robert W. Selander, executive vice chair of MasterCard, said he had learned over time to
encourage discussion in a group. “From sort of a style standpoint, I prefer to do what I call more of a
consensus style of decision-making,” he said. “So when I’m around the table with our executive com-
mittee, the senior leadership of the company, I could easily make a bilateral decision. You’re knowl-
edgeable about your area. I may have the best knowledge about your area or second best around the
table. You and I agree. Let’s get on with it. What we haven’t done is we haven’t benefited from the
wisdom, the insight, and the experience of the others around the table. And while they may not have
as much insight or knowledge about your area as you do, there’s a chance that we missed something.
So I try to get more engagement and discussion around topics and avoid what I would call bilateral-
ism. I think what happens is sometimes you get an insight that’s startling and important and affects
the decision, but you also get
participative involvement so
that there is buy-in and a rec-
ognition of how we got to that
decision. It’s not as if the boss
went off in a corner and waved
a magic wand and, bang, out
came the decision.”24
With a delegative style,
the leader gives an individ-
ual employee or a group of
employees the responsibility
for making the decision within
some set of specified boundary
conditions.25 The leader plays
no role in the deliberations
FIGURE 14-2 Leader Decision-Making Styles
High Follower
Control
High Leader
Control
Delegative
Style
Facilitative
Style
Consultative
Style
Autocratic
Style
Sergio Marchionne, CEO of
Fiat-Chrysler, is known for
his autocratic and speedy
decision-making style.
©Bloomberg/Getty Images
Final PDF to printer
449C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 449 10/17/17 11:41 AM
unless asked, though he or she may offer encouragement and provide necessary resources behind
the scenes. Former American Apparel CEO Paula Schneider, known as a “macromanager,” took
over for a CEO who had a hardcore autocratic style. “If someone comes to me and says, ‘Every-
thing is screwed up,’ then I make them list everything. And then after once or twice, no one does it
again, because no one wants to list everything. Here, it is about finding solutions.”26 Daniel Amos,
CEO and chair of Aflac, also believes strongly in a delegative style. He says, “My theory is that
when you start telling people what to do, they no longer are responsible; you are. I’ll give them my
opinion and say; ‘Look, this is my opinion, but if you choose that and you fail, you’re not blaming
it on me. It is your fault.’ I think it makes them stronger.”27
WHEN ARE THE STYLES MOST EFFECTIVE? Which decision-making style is best? As you
may have guessed, there is no one decision-making style that’s effective across all situations, and
all styles have their pluses and minuses. There are many factors to consider when leaders choose
a decision-making style.28 The most obvious consideration is the quality of the resulting decision,
because making the correct decision is the ultimate means of judging the leader. However, leaders
also have to consider whether employees will accept and commit to their decision. Research stud-
ies have repeatedly shown that allowing employees to participate in decision making increases their
job satisfaction.29 Such participation also helps develop employees’ own decision-making skills.30
Of course, such participation has a downside for employees because it takes up time. Many
employees view meetings as an interruption of their work. One recent study found that employees
spend, on average, six hours a week in scheduled meetings and that time spent in meetings relates
negatively to job satisfaction when employees don’t depend on others in their jobs, focus on their
own task accomplishment, and believe meetings are run ineffectively.31 Diane Bryant, EVP at Intel,
argues that “You need people who are critical to making the decisions on the agenda, not people
who are there only because they’ll be impacted. At Intel, if we see someone who doesn’t need to be
there, people will say, ‘Bob, I don’t think we need you here. Thanks for coming.’”32 Similarly, Mary
Barra is trying to speed things up at GM, which is known for having one of the most bureaucratic
cultures around—the company is known for decisions having to be made by committee. Once, they
even appointed a committee to take a look at how many committee meetings should be held!33
How can leaders effectively manage their choice of decision-making styles? The time-driven
model of leadership offers one potential guide.34 It suggests that the focus should shift away from
autocratic, consultative, facilitative, and delegative leaders to autocratic, consultative, facilitative,
and delegative situations. More specifically, the model suggests that seven factors combine to
make some decision-making styles more effective in a given situation and other styles less effec-
tive. Those seven factors include:
• Decision significance: Is the decision significant to the success of the project or the organization?
• Importance of commitment: Is it important that employees “buy in” to the decision?
• Leader expertise: Does the leader have significant knowledge or expertise regarding the problem?
• Likelihood of commitment: How likely is it that employees will trust the leader’s decision and
commit to it?
• Shared objectives: Do employees share and support the same objectives, or do they have an
agenda of their own?
• Employee expertise: Do the employees have significant knowledge or expertise regarding the
problem?
• Teamwork skills: Do the employees have the ability to work together to solve the problem, or will
they struggle with conflicts or inefficiencies?
Figure 14-3 illustrates how these seven factors can be used to determine the most effective
decision-making style in a given situation. The figure asks whether the levels of each of the seven fac-
tors are high (H) or low (L). The figure functions like a funnel, moving from left to right, with each
answer taking you closer to the recommended style (dashes mean that a given factor can be skipped
for that combination). Although the model seems complex at first glance, the principles within it
are straightforward. Autocratic styles are reserved for decisions that are insignificant or for which
employee commitment is unimportant. The only exception is when the leader’s expertise is high and
the leader is trusted. An autocratic style in these situations should result in an accurate decision
Final PDF to printer
450 C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 450 10/17/17 11:41 AM
Source: Adapted from V.H. Vroom, “Leadership and the Decision-Making Process,” Organizational Dynamics 28 (2000),
pp. 82–94.
FIGURE 14-3 The Time-Driven Model of Leadership
Autocratic
Delegative
Consultative
Facilitative
H
H
H
Consultative
L
Facilitative
Consultative
H Autocratic
Facilitative
L
Consultative
L
Autocratic
H Delegative
Facilitative
L
L –
–
L
H
H
L
–
–
H
L
–
H
H
L
L
H
L
–
H
–
L
–
–
–
H
H
L
–
L
H
L
–
–
H
L
–
–
–
–
–
–
H
H
–
–
L
L
H
L
–
–
–
H
L
–
–
–
–
–
–
H
L
– Autocratic
Li
ke
lih
o
o
d
o
f
C
o
m
m
itm
e
n
t
S
h
a
re
d
O
b
je
ct
iv
e
s
E
m
p
lo
ye
e
E
xp
e
rt
is
e
Te
a
m
w
o
rk
S
ki
lls
D
e
ci
si
o
n
S
ig
n
ifi
ca
n
ce
Im
p
o
rt
a
n
ce
o
f
C
o
m
m
itm
e
n
t
Le
a
d
e
r
E
xp
e
rt
is
e
S
TA
R
T
H
E
R
E
E
N
D
H
E
R
E
that makes the most efficient use of employees’ time. Delegative styles should be reserved for cir-
cumstances in which employees have strong teamwork skills and are not likely to commit blindly to
whatever decision the leader provides. Deciding between the remaining two styles—consultative and
facilitative—is more nuanced and requires a more complete consideration of all seven factors.
For our earlier example of Sergio Marchionne, decision significance is high, importance of
commitment is low, and leader expertise is high, so he adopts an autocratic decision style. How-
ever, for Jack Griffin, ex-CEO of Time Inc., autocratic decision making didn’t seem to go over too
well. Griffin became known within the company for his “imperious” decision-making behavior.
For example, he insisted that every magazine include a masthead with his name at the top (an
extra page that cost the company about $5 million a year) almost right after hundreds of employ-
ees were laid off—a decision that used to be left up to individual editors. A source within the
company was quoted as saying, “Time Inc. has long operated on the collegial consensus approach
and I don’t think that was Jack’s strength.”35 With magazine publishing operating during such a
precarious time, we would label decision significance as high, importance of commitment as high,
and the leader not appearing to have expertise in the subject matter of the decisions. As a result,
his autocratic style led to a rebellion by those working for him and his termination only six months
after his appointment. A key point about Figure 14-3 is that unless a leader is an expert with regard
to the focus of the decision, autocratic decisions are not the right style to choose.
Research tends to support many of the time-driven model’s propositions, particularly when it
uses practicing managers as participants.36 For example, one study asked managers to recall past
decisions, the context surrounding those decisions, and the eventual successes (or failures) of their
decisions.37 When managers used the decision-making styles recommended by the model, those deci-
sions were rated as successful 68 percent of the time. When managers went against the model’s
prescriptions, their decisions were only rated as successful 22 percent of the time. It’s also interesting
Final PDF to printer
451C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 451 10/17/17 11:41 AM
to note that studies suggest that managers tend to choose the style recommended by the model
only around 40 percent of the time and exhibit less variation in styles than the model suggests they
should.38 In particular, managers seem to overuse the consultative style and underutilize autocratic
and facilitative styles. Sheila Lirio Marcelo, the CEO of Care.com, uses a unique approach by actu-
ally letting her staff know what type of decisions will be made prior to each meeting. “We do Type 1,
Type 2, Type 3 decisions,” she said. “Type 1 decisions are the decision-maker’s sole decision—
dictatorial [autocratic]. Type 2: people can provide input, and then the person can still make the
decision [consultative]. Type 3, it’s consensus [facilitative]. It’s a great way to efficiently solve a prob-
lem.”39 To try to use the time-driven model’s suggestions yourself, see this chapter’s OB on Screen.
OB ON SCREEN
THE MARTIAN
This is something NASA expressly rejected. We’re talking about mutiny here, which is not a word
that I take lightly, so we do this together—or not at all.
With those words, Commander Melissa Lewis (Jessica Chastain) signals the decision-making
style she is going to use during a conversation with the crew of the Hermes in The Martian (Dir:
Ridley Scott, 20th Century Fox, 2015). The year is 2035 and the crew of the Ares III mission to
Mars has just been sent a clandestine communication from an unknown source within NASA.
The message provides details as to how they can re-route their spacecraft to potentially return to
Mars to save stranded crew member Mark Watney (Matt Damon) whom they left behind believ-
ing that he was dead. The decision is not an easy one and is rife with potential complications.
What decision-making style should Commander Lewis use to decide what to do?
If we work our way through Figure 14-3, it seems clear that the decision is significant. To re-route
their craft is to go against the decision of NASA and potentially jeopardizes the entire operation.
Commander Lewis also stresses to the crew that any mistake along the way could kill them all. Get-
ting the crew’s commitment to the decision is highly important not only due to the danger, but also
because it adds 533 days to their voyage. Commander Lewis, while highly qualified, does not have
the expertise to do it alone. It’s likely the crew will commit; one does so before even thinking through
the options. The crew shares a great desire (objective) to rectify leaving one of their own behind
and they are each experts in their chosen fields (geologist, pilot, doctor, computer programmer, and
chemist). In addition, the crew has demonstrated their ability to work effectively with each other as
a team. If you’ve been keeping up with Figure 14-3 we have a H-H-L-H-H-H-H, suggesting that Com-
mander Lewis’s most effective decision-making style would be facilitative. Even though it is within
her purview to order the crew to do what she wants, Commander Lewis presents the problem to the
group and seeks consensus on the solution, ensuring that her vote only counts as one of five.
©Photo 12/Alamy
Final PDF to printer
452 C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 452 10/17/17 11:41 AM
DAY-TO – DAY L E A D E R S H I P B E H AV I O R S
Leaving aside how they go about making decisions, what do leaders do on a day-to-day basis?
When you think about bosses that you’ve had, what behaviors did they tend to perform as part
of their daily leadership responsibilities? A series of studies at Ohio State in the 1950s attempted
to answer that question. Working under grants from the Office of Naval Research and the Inter-
national Harvester Company, the studies began by generating a list of all the behaviors leaders
engage in—around 1,800 in all.40 Those behaviors were trimmed down to 150 specific examples,
then grouped into several categories, as shown in Table 14-3.41 The table reveals that many leaders
spend their time engaging in a mix of initiating, organizing, producing, socializing, integrating,
communicating, recognizing, and representing behaviors. Although eight categories are easier to
remember than 1,800 behaviors, further analyses suggested that the categories in Table 14-3 really
boil down to just two dimensions: initiating structure and consideration.42
Initiating structure reflects the extent to which the leader defines and structures the roles of
employees in pursuit of goal attainment.43 Leaders who are high on initiating structure play a
more active role in directing group activities and prioritize planning, scheduling, and trying out
new ideas. They might emphasize the importance of meeting deadlines, describe explicit stan-
dards of performance, ask employees to follow formalized procedures, and criticize poor work
when necessary.44 Millard Drexler, CEO of J. Crew (the New York–based clothing retailer), has a
unique initiating structure approach as he belts out instructions, assigns tasks, discusses clothing
trends, and talks about sales statistics and goals about a dozen times a day over loudspeakers in
the main Manhattan office. If he isn’t in the office (and he often isn’t), he has his assistant patch
him in through his cell phone.45
Consideration reflects the extent to which leaders create job relationships characterized by
mutual trust, respect for employee ideas, and consideration of employee feelings.46 Leaders who
14.4
What two dimensions
capture most of the day-to-
day leadership behaviors in
which leaders engage?
TABLE 14-3 Day-to-Day Behaviors Performed by Leaders
BEHAVIOR DESCRIPTION
Initiating Structure
Initiation Originating, facilitating, and sometimes resisting new ideas and
practices
Organization Defining and structuring work, clarifying leader versus member
roles, coordinating employee tasks
Production Setting goals and providing incentives for the effort and productiv-
ity of employees
Consideration
Membership Mixing with employees, stressing informal interactions, and
exchanging personal services
Integration Encouraging a pleasant atmosphere, reducing conflict, promoting
individual adjustment to the group
Communication Providing information to employees, seeking information from
them, showing an awareness of matters that affect them
Recognition Expressing approval or disapproval of the behaviors of employees
Representation Acting on behalf of the group, defending the group, and advanc-
ing the interests of the group
Source: R.M. Stogdill, Manual for the Leader Behavior Description Questionnaire-Form XII, Bureau of Business Research,
The Ohio State University, 1963.
Final PDF to printer
453C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 453 10/17/17 11:41 AM
are high on consideration create a climate of good rapport and strong, two-way communica-
tion and exhibit a deep concern for the welfare of employees. They might do personal favors for
employees, take time to listen to their problems, “go to bat” for them when needed, and treat them
as equals.47 Jeff Immelt, CEO of General Electric, attempts to do this with many of the officers in
his company by hosting a sleepover a couple of times a month. Immelt says, “We spend Saturday
morning just talking about their careers. Who they are, how they fit, how I see their strengths and
weaknesses—stuff like that. The personal connection is something I may have taken for granted
before that [and] I don’t want to ever take for granted again.”48 Google’s project OXYGEN was
a process that tried to identify the most effective behaviors of managers inside the organization.
The three most important habits that determined leader success were all oriented toward consid-
eration: meeting regularly with employees, taking an interest in them personally, and asking ques-
tions rather than always providing answers.49
The Ohio State studies argued that initiating structure and consideration were (more or less)
independent concepts, meaning that leaders could be high on both, low on both, or high on one
and low on the other. That view differed from a series of studies conducted at the University of
Michigan during the same time period. Those studies identified concepts similar to initiating
structure and consideration, calling them production-centered (or task-oriented) and employee-
centered (or relations-oriented) behaviors.50 However, the Michigan studies framed their task-
oriented and relations-oriented concepts as two ends of one continuum, implying that leaders
couldn’t be high on both dimensions.51 In fact, a meta-analysis of 78 studies showed that initiat-
ing structure and consideration are only weakly related—knowing whether a leader engages in
one brand of behavior says little about whether he or she engages in the other brand.52 To see
how much initiating structure and consideration you engage in during leadership roles, see our
OB Assessments feature.
After an initial wave of research on initiating structure and consideration, leadership experts
began to doubt the usefulness of the two dimensions for predicting leadership effectiveness.53
More recent research has painted a more encouraging picture, however. A meta-analysis of 103
studies showed that initiating structure and consideration both had beneficial relationships with
a number of outcomes.54 For example, consideration had a strong positive relationship with per-
ceived leader effectiveness, employee motivation, and employee job satisfaction. It also had a
moderate positive relationship with overall unit performance. For its part, initiating structure had
a strong positive relationship with employee motivation and moderate positive relationships with
perceived leader effectiveness, employee job satisfaction, and overall unit performance. One of the
most amusing and unique CEOs in the country, Chobani’s Hamdi Ulukaya, is known for exhibit-
ing both sets of behaviors. Employees say that there are, in essence, two Hamdi’s. Ulukaya says,
“I’m a shepherd and I’m a warrior—I come and go between those two.” CMO Peter McGuinness
says the two versions of Ulukaya mesh together well: “The leaders of tomorrow more and more
realize that having a strong head and big heart is where you need to be.”55
Although initiating structure and consideration tend to be beneficial across situations, there
may be circumstances in which they become more or less important. The life cycle theory of
leadership (sometimes also called the situational model of leadership) argues that the optimal
combination of initiating structure and consideration depends on the readiness of the employees
in the work unit.56 Readiness is broadly defined as the degree to which employees have the abil-
ity and the willingness to accomplish their specific tasks.57 As shown in Figure 14-4, the theory
suggests that readiness varies across employees and can be expressed in terms of four important
snapshots: R1–R4. To find the optimal combination of leader behaviors for a particular readi-
ness snapshot, put your finger on the relevant R, then move it straight down to the recommended
combination of behaviors.
The description of the first two R’s has varied over time and across different formulations of
the theory. One formulation described the R’s as similar to stages of group development.58 R1
refers to a group of employees who are working together for the first time and are eager to begin,
but they lack the experience and confidence needed to perform their roles. Here the optimal
combination of leader behaviors is telling—high initiating structure and low consideration—in
which case the leader provides specific instructions and closely supervises performance. The
lion’s share of the leader’s attention must be devoted to directing followers in this situation,
Final PDF to printer
454 C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 454 10/17/17 11:41 AM
OB ASSESSMENTS
INITIATING STRUCTURE AND CONSIDERATION
How do you act when you’re in a leadership role? This assessment is designed to measure initiat-
ing structure and consideration. Please write a number next to each statement that reflects how
frequently you engage in the behavior described. Then subtract your answers to the boldfaced
questions from 6, with the difference being your new answer for that question. For example, if
your original answer for question 16 was “4,” your new answer is “2” (6–4). Then sum up your
answers for each of the dimensions. (Instructors: Assessments on transformational leadership,
LMX, charisma, and readiness can be found in the PowerPoints in the Connect Library’s Instruc-
tor Resources and in the Connect assignments for this chapter.)
SCORING AND INTERPRETATION:
Initiating Structure: Sum up items 1–10. _______
Consideration: Sum up items 11–20. _______
For initiating structure, scores of 38 or more are high. For consideration, scores of 40 or more
are high.
Source: R.M. Stogdill, Manual for the Leader Behavior Description Questionnaire–Form XII (Columbus, OH: Bureau of
Business Research, The Ohio State University, 1963).
1
NEVER
2
SELDOM
3
OCCASIONALLY
4
OFTEN
5
ALWAYS
1. I let group members know what is expected of them. ________
2. I encourage the use of uniform procedures. ________
3. I try out my ideas in the group. ________
4. I make my attitudes clear to the group. ________
5. I decide what shall be done and how it shall be done. ________
6. I assign group members to particular tasks. ________
7. I make sure that my part in the group is understood by the group members. ________
8. I schedule the work to be done. ________
9. I maintain definite standards of performance. ________
10. I ask group members to follow standard rules and regulations. ________
11. I am friendly and approachable. ________
12. I do little things to make it pleasant to be a member of the group. ________
13. I put suggestions made by the group into operation. ________
14. I treat all group members as equals. ________
15. I give advance notice of changes. ________
16. I keep to myself. ________
17. I look out for the personal welfare of group members. ________
18. I am willing to make changes. ________
19. I refuse to explain my actions. ________
20. I act without consulting the group. ________
Final PDF to printer
455C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 455 10/17/17 11:41 AM
FIGURE 14-4 The Life Cycle Theory of Leadership
Source: Adapted from P. Hersey and K. Blanchard, “Revisiting the Life-Cycle Theory of Leadership,” Training and Devel-
opment, January 1996, pp. 42–47.
Firing on all
cylinders
Starting to
work well
together
Readiness
R4
HIGH LOWMODERATE
Tasks seem
harder than
expected
Eager but
inexperienced
R3 R2 R1
Initiating Structure HIGH HIGH
Consideration HIGHHIGH LOWLOW
LOW LOW
Partici-
pating
Dele-
gating
Selling Telling
because their goals and roles need to be clearly defined. In the R2 stage, the members have
begun working together and, as typically happens, are finding that their work is more difficult
than they had anticipated. As eagerness turns to dissatisfaction, the optimal combination of
leader behaviors is selling—high initiating structure and high consideration—in which the leader
supplements his or her directing with support and encouragement to protect the confidence
levels of the employees.
As employees gain more ability, guidance and direction by the leader become less necessary.
At the R3 stage, employees have learned to work together well, though they still need support
and collaboration from the leader to help them adjust to their more self-managed state of affairs.
Here participating—low initiating structure and high consideration—becomes the optimal com-
bination of leader behaviors.
Finally, the optimal combina-
tion for the R4 readiness level is
delegating—low initiating struc-
ture and low consideration—
such that the leader turns
responsibility for key behav-
iors over to the employees.
Here the leader gives them the
proverbial ball and lets them
run with it. All that’s needed
from the leader is some degree
of observation and monitor-
ing to make sure that the
group’s efforts stay on track.
Nick Woodman, CEO of
GoPro, had to learn the hard
way (after numerous project
Jeff Immelt, CEO of
General Electric, exhibits
consideration by holding
“sleepovers” with his offi-
cers to get to know them
better.
©Brett Flashnick/AP Images
Final PDF to printer
456 C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 456 10/17/17 11:41 AM
failures) to recognize the readiness in his followers and that as the company’s projects moved
outside of his area of expertise, he had to delegate more to his staff.59
Estimates suggest that the life cycle theory has been incorporated into leadership training
programs at around 400 of the firms in the Fortune 500, with more than one million manag-
ers exposed to it annually.60 Unfortunately, the application of the theory has outpaced scientific
testing of its propositions, and the shifting nature of its terminology and predictions has made
scientific testing somewhat difficult.61 The research that has been conducted supports the theory’s
predictions only for low readiness situations, suggesting that telling and selling sorts of behaviors
may be more effective when ability, motivation, or confidence is lacking.62 When readiness is
higher, these tests suggest that leader behaviors simply matter less, regardless of their particular
combinations. Tests also suggest that leaders only use the recommended combinations of behav-
iors between 14 and 37 percent of the time,63 likely because many leaders adhere to the same
leadership philosophy regardless of the situation. It should also be noted that tests of the theory
have been somewhat more supportive when conducted on an across-job, rather than within-job,
basis. For example, research suggests that the performance of lower ranking university employees
(e.g., maintenance workers, custodians, landscapers) depends more on initiating structure and
less on consideration than the performance of higher ranking university employees (e.g., profes-
sors, instructors).64
T R A N S F O R M AT I O N A L L E A D E R S H I P B E H AV I O R S
By describing decision-making styles and day-to-day leader behaviors, we’ve covered a broad spec-
trum of what it is that leaders do. Still, something is missing. Take a small piece of scrap paper and
jot down five people who are famous for their effective leadership. They can come from inside or
outside the business world and can be either living people or historical figures. All that’s impor-
tant is that their name be practically synonymous with great leadership. Once you’ve compiled
your list, take a look at the names. Do they appear on your list because they tend to use the right
decision-making styles in the right situations and engage in effective levels of consideration and
initiating structure? What about the case of Mary Barra? Do decision-making styles and day-to-
day leadership behaviors explain her importance to the fortunes of GM?
The missing piece of this leadership puzzle is what leaders do to motivate their employees to
perform beyond expectations. Transformational leadership involves inspiring followers to commit
to a shared vision that provides meaning to their work while also serving as a role model who
helps followers develop their own potential and view problems from new perspectives.65 Trans-
formational leaders heighten followers’ awareness of the importance of certain outcomes while
Mother Teresa’s inspiring
humanitarian work with
India’s sick and poor,
and her founding of the
influential Missionaries of
Charity, became known
around the world and sug-
gest that she was a trans-
formational leader. She
was awarded the Nobel
Peace Prize in 1979.
©Tim Graham/Hulton Archive/Getty Images
Final PDF to printer
457C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 457 10/17/17 11:41 AM
increasing their confidence that those outcomes can be achieved.66 What gets “transformed” is the
way followers view their work, causing them to focus on the collective good more than just their
own short-term self-interests and to perform beyond expectations as a result.67 Former president
Dwight D. Eisenhower once noted, “Leadership is the ability to decide what is to be done, and
then to get others to want to do it.”68 Former president Harry S. Truman similarly observed, “A
leader is a man who has the ability to get other people to do what they don’t want to do, and like
it.”69 Both quotes capture a transformation in the way followers view their work and what moti-
vates them on the job.
Transformational leadership is viewed as a more motivational approach to leadership than
other managerial approaches. Figure 14-5 contrasts various approaches to leadership according to
how active or passive they are and, ultimately, how effective they prove to be. The colored cubes in
the figure represent five distinct approaches to motivating employees, and the depth of the cubes
represents how much a leader prioritizes each of the approaches. The figure therefore represents
an optimal leadership approach that prioritizes more effective and more active behaviors. That
optimal approach includes low levels of laissez-faire (i.e., hands-off) leadership, represented by the
red cube, which is the avoidance of leadership altogether.70 Important actions are delayed, respon-
sibility is ignored, and power and influence go unutilized. One common measure of leadership
reflects laissez-faire styles with this statement: “The leader avoids getting involved when important
issues arise.”71
The three yellow cubes represent transactional leadership, which occurs when the leader
rewards or disciplines the follower depending on the adequacy of the follower’s performance.72
With passive management-by-exception, the leader waits around for mistakes and errors, then takes
corrective action as necessary.73 After all, “if it ain’t broke, don’t fix it!”74 This approach is rep-
resented by statements like: “The leader takes no action until complaints are received.”75 With
active management-by-exception, the leader arranges to monitor mistakes and errors actively and
again takes corrective action when required.76 This approach is represented by statements like:
“The leader directs attention toward failures to meet standards.”77 Contingent reward represents
a more active and effective brand of transactional leadership, in which the leader attains follower
agreement on what needs to be done using promised or actual rewards in exchange for adequate
performance.78 Statements like “The leader makes clear what one can expect to receive when per-
formance goals are achieved” exemplify contingent reward leadership.79
Transactional leadership represents the “carrot-and-stick” approach to leadership, with
management-by-exception providing the “sticks” and contingent reward supplying the “carrots.”
Of course, transactional leadership represents the dominant approach to motivating employees
in most organizations, and research suggests that it can be effective. A meta-analysis of 87 stud-
ies showed that contingent reward was strongly related to follower motivation and perceived
leader effectiveness80 (see Chapter 6 on motivation for more discussion of such issues). Active
management-by-exception was only weakly related to follower motivation and perceived leader
effectiveness, however, and passive management-by-exception seems actually to harm those
outcomes.81 Such results support the progression shown in Figure 14-5, with contingent reward
standing as the most effective approach under the transactional leadership umbrella.
Finally, the green cube represents transformational leadership—the most active and effective
approach in Figure 14-5. How effective is transformational leadership? Well, we’ll save that dis-
cussion for the “How Important Is Leadership?” section that concludes this chapter, but suf-
fice it to say that transformational leadership has the strongest and most beneficial effects of
any of the leadership variables described in this chapter. It’s also the leadership approach that’s
most universally endorsed across cultures, as described in our OB Internationally feature. In addi-
tion, it probably captures the key qualities of the famous leaders we asked you to list a few para-
graphs back. To understand why it’s so powerful, we need to dig deeper into the specific kinds
of actions and behaviors that leaders can utilize to become more transformational. It turns out
that the full spectrum of transformational leadership can be summarized using four dimensions:
idealized influence, inspirational motivation, intellectual stimulation, and individualized consid-
eration. Collectively, these four dimensions of transformational leadership are often called “the
Four I’s.”82 For our discussion of transformational leadership, we’ll use Steve Jobs, former CEO
of Apple, who was widely recognized as one of the most transformational leaders in the corporate
14.5
How does transformational
leadership differ from
transactional leadership,
and which behaviors set it
apart?
Final PDF to printer
458 C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 458 10/17/17 11:41 AM
FIGURE 14-5 Laissez-Faire, Transactional, and Transformational Leadership
Source: Adapted from B.M. Bass and R.E. Riggio, Transformational Leadership, 2nd ed. (Mahwah, NJ: Erlbaum, 2006).
EFFECTIVE
INEFFECTIVE
ACTIVEPASSIVE
Laissez-Faire
Transactional:
Passive Management-
by-Exception
Transactional:
Active Management-
by-Exception
Transactional:
Contingent Reward
Transformational
world, as a running example. Fortune named Jobs “CEO of the Decade” for the 2000s.83 Although
Jobs died in 2011, his legacy as a transformational leader continues to this day. The fact that we
constantly hear good leaders being called “Steve Jobs-like” illustrates this fact. Jobs’s leadership
continues to affect employees at Apple in profound ways.84
Idealized influence involves behaving in ways that earn the admiration, trust, and respect of
followers, causing followers to want to identify with and emulate the leader.85 Idealized influ-
ence is represented by statements like: “The leader instills pride in me for being associated with
him/her.”86 Idealized influence is synonymous with charisma—a Greek word that means “divinely
inspired gift”—which reflects a sense among followers that the leader possesses extraordinary qual-
ities.87 “Charisma” is a word that was often associated with Steve Jobs. One observer noted that
even though Jobs could be very difficult to work with, his remarkable charisma created a mysteri-
ous attraction that drew people to him, keeping them loyal to his collective sense of mission.88
To some extent, discussions of charisma serve as echoes of the “great person” view of leader-
ship that spawned the trait research described in Table 14-2. In fact, research suggests that there
Final PDF to printer
459C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 459 10/17/17 11:41 AM
Does the effectiveness of leader styles and behaviors vary across cultures? Answering that ques-
tion is one of the objectives of Project GLOBE’s test of culturally endorsed implicit leadership theory,
which argues that effective leadership is “in the eye of the beholder” (see Chapter 9 on personality
and cultural values for more discussion of such issues). To test the theory, researchers asked par-
ticipants across cultures to rate a number of leader styles and behaviors using a 1 (very ineffective)
to 7 (very effective) scale. The accompanying figure shows how three of the styles and behaviors
described in this chapter were rated across 10 different regions (note that the term “Anglo” repre-
sents people of English ethnicity, including the United States, Great Britain, and Australia).
OB INTERNATIONALLY
Sources: P.W. Dorfman, P.J.Hanges, and F.C.Brodbeck, “Leadership and Cultural Variation: The Identification of Cultur-
ally Endorsed Leadership Profiles,” in Culture, Leadership, and Organizations, ed. R.J. House, P.J. Hanges, M. Javidan,
P.W. Dorfman, and V. Gupta (Thousand Oaks, CA: Sage, 2004), pp. 669–720; R.J. House., P.J. Hanges, M. Javidan, P.W.
Dorfman, and V.Gupta, Culture, Leadership, and Organizations (Thousand Oaks, CA: Sage, 2004); and M. Javidan., R.J.
House, and P.W. Dorfman.,“A Nontechnical Summary of GLOBE Findings,” in Culture, Leadership, and Organizations, ed.
R.J. House, P.J. Hanges, M. Javidan, P.W. Dorfman, and V. Gupta (Thousand Oaks, CA: Sage, 2004), pp. 29–48.
Eastern Europe
Latin America
Latin Europe
Confucian Asia
Nordic Europe Sub-Sahara Africa
Anglo
Southern Asia
Germanic Europe
Middle East
7
6
4
3
Transformational
Participative
Consideration
5
It turns out that transformational leadership is the most universally accepted approach to lead-
ership of any of the concepts studied by Project GLOBE, receiving an average rating near 6 in
every region except the Middle East. That appeal is likely explained by the fact that transforma-
tional leaders emphasize values like idealism and virtue that are endorsed in almost all coun-
tries. The figure also shows that a participative style is favorably viewed in most countries, though
more variation is evident. Even more variation is seen with consideration behaviors, which are
endorsed a bit less across the board but especially in Europe. Understanding these kinds of results
can help organizations select and train managers who will fit the profile of an effective leader in
a given region.
Final PDF to printer
460 C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 460 10/17/17 11:41 AM
is a genetic component to charisma specifically and to transformational leadership more broadly.
Studies on identical twins reared apart show that such twins have very similar charismatic pro-
files, despite their differing environments.89 Indeed, such research suggests that almost 60 per-
cent of the variation in charismatic behavior can be explained by genes. One explanation for such
findings is that genes influence the personality traits that give rise to charisma. For example,
research suggests that extraversion, openness to experience, and agreeableness have significant
effects on perceptions of leader charisma,90 and all three of those personality dimensions have a
significant genetic component (see Chapter 9 on personality and cultural values for more discus-
sion of such issues).
Inspirational motivation involves behaving in ways that foster an enthusiasm for and commit-
ment to a shared vision of the future.91 That vision is transmitted through a sort of “meaning-
making” process in which the negative features of the status quo are emphasized while highlight-
ing the positive features of the potential future.92 Inspirational motivation is represented by state-
ments like: “The leader articulates a compelling vision of the future.”93 At Apple, Steve Jobs
was renowned for spinning a “reality distortion field” that reshaped employees’ views of the cur-
rent work environment.94 One Apple employee explained, “Steve has this power of vision that is
almost frightening. When Steve believes in something, the power of that vision can literally sweep
aside any objections, problems, or whatever. They just cease to exist.”95
Intellectual stimulation involves behaving in ways that challenge followers to be innovative and
creative by questioning assumptions and reframing old situations in new ways.96 Intellectual stimu-
lation is represented by statements like: “The leader gets others to look at problems from many
different angles.”97 Intellectual stimulation was a staple of Jobs’s tenure at Apple. He pushed for
a different power supply on the Apple II so that the fan could be removed, preventing it from
humming and churning like other computers of the time. Years later, he insisted on removing
the floppy drive from the iMac because it seemed silly to transfer data one megabyte at a time, a
decision that drew merciless criticism when the iMac debuted. One employee talking about Jobs
stated, “There would be times when we’d rack our brains on a user interface problem, and think
we’d considered every option, and he would go ‘Did you think of this?’ He’d redefine the problem
or approach, and our little problem would go away.”98
Individualized consideration involves behaving in ways that help followers achieve their poten-
tial through coaching, development, and mentoring.99 Not to be confused with the consideration
behavior derived from the Ohio State studies, individualized consideration represents treating
employees as unique individuals with specific needs, abilities, and aspirations that need to be tied
into the unit’s mission. Individualized consideration is represented by statements like: “The leader
spends time teaching and coaching.”100 Of the four facets of transformational leadership, Steve
Jobs seemed lowest on individualized consideration. Employees who were not regarded as his
equals were given a relatively short leash and sometimes faced an uncertain future in the company.
In fact, some Apple employees resisted riding the elevator for fear of ending up trapped with Jobs
for the ride between floors. As one observer describes it, by the time the doors open, you might
have had your confidence undermined for weeks.101 For a different (yet similar) take on what sets
our best leaders apart from others, see our OB at the Bookstore feature.
One interesting domain for examining transformational leadership issues is politics. Many
of the most famous speeches given by U.S. presidents include a great deal of transformational
content. Table 14-4 includes excerpts from speeches given by presidents that rank highly on
transformational content based on scientific and historical study.102 One theme that’s notable
in the table is the presence of a crisis, as many of the presidents were attempting to steer the
country through a difficult time in history (e.g., World War II, the Cold War, the Civil War).
That’s not a coincidence, in that times of crisis are particularly conducive to the emergence of
transformational leadership.103 Times of stress and turbulence cause people to long for charis-
matic leaders, and encouraging, confident, and idealistic visions resonate more deeply during
such times. In addition, support for this suggestion comes from President George W. Bush’s
speeches before and after the tragedies on 9/11. Coding of his major speeches, public addresses,
and radio addresses shows a significant increase in the transformational content of his rhetoric
after the 9/11 attacks, including more focus on a collective mission and more articulation of
a values-based vision.104 As future research is conducted, we’re fairly confident that President
Final PDF to printer
461C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 461 10/17/17 11:41 AM
OB AT THE BOOKSTORE
SUPERBOSSES
by Sydney Finkelstein (New York: Portfolio / Penguin, 2016)
Superbosses are the great coaches, the igniters of talent, and the teachers of leadership in most
industries. In effect, superbosses have mastered something most bosses miss—a path to extraordi-
nary success founded on making other people successful.
With those words, Sydney Finkelstein describes what sets his idea
of a “Superboss” apart from most other managers or leaders. Finkel-
stein, a professor at Dartmouth University, spent 10 years interview-
ing over 200 renowned leaders across numerous industries to try to
unlock the secrets to what creates superlative leadership. The funda-
mental conclusion he reached is that what makes a superboss is pri-
marily a leader’s desire and ability to make the people underneath
them successful. They are willing to do whatever it takes to hire the
right people (sometimes in spite of a lack of qualifications) and have
the ability to push them to be successful by using their authentic
leadership styles. You can spot a superboss by looking at the trail
of successful leaders behind them. For instance, at one point NFL
Coach Bill Walsh (one of the inspirations for Finkelstein’s research)
had trained 26 of the current head coaches in the NFL (out of 32).
He identifies the following characteristics present to some degree in
all superbosses: extreme confidence, competitiveness, imagination,
integrity, and authenticity.
Finkelstein argues that superbosses essentially fall into one of three categories. The first are
“Iconoclasts” who have a creative and passionate vision that inspires the employees around them.
Examples of iconoclasts are George Lucas, Lorne Michaels, and Jon Stewart. The second cat-
egory is “Glorious Bastards” in which the leader is focused on only one thing: winning. However,
these leaders recognize that winning comes through hiring and developing the best people. Exam-
ples of glorious bastards are Larry Ellison, Michael Milken, and Bonnie Fuller. The third group of
superbosses are “Nurturers” who take pride in mentoring those around them and care about their
success. Examples include Mary Kay Ash, Bill Walsh, and Norman Brinker. Not surprisingly,
these categories actually map pretty well onto three of the four dimensions of transformational
leadership—namely, inspirational motivation (iconoclasts), intellectual stimulation (glorious bas-
tards), and individualized consideration (nurturers).
©Roberts Publishing Services
Barack Obama’s speeches will be described similarly, as many of his campaign and postelection
speeches were high in transformational content. In fact, President Obama was known for being
a very charismatic leader in terms of both the messages he delivered and the mannerisms that
went along with them.105 It remains to be seen how President Trump’s speeches will be seen and
received by others.
S U M M A RY: W H Y A R E S O M E L E A D E R S M O R E E F F E C T I V E
T H A N OT H E R S ?
So what explains why some leaders are more effective than others? As shown in Figure 14-6,
answering that question requires an understanding of the particular styles that leaders use to make
decisions and the behaviors they perform in their leadership role. In terms of decision-making
Final PDF to printer
462 C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 462 10/17/17 11:41 AM
TABLE 14-4 Transformational Rhetoric among U.S. Presidents
PRESIDENT TERM REMARK WHICH “I”?
Abraham Lincoln 1861–1865 “Fourscore and seven years ago
our forefathers brought forth on
this continent, a new nation, con-
ceived in Liberty, and dedicated
to the proposition that all men are
created equal.”
Idealized influence
Franklin Roosevelt 1933–1945 “First of all, let me assert my firm
belief that the only thing we have
to fear is fear itself—nameless,
unreasoning, unjustified terror
which paralyzes needed efforts to
convert retreat into advance.”
Inspirational
motivation
John F. Kennedy 1961–1963 “And so, my fellow Americans . . .
ask not what your country can do
you for you—ask what you can do
for your country. My fellow citizens
of the world: Ask not what
America will do for you, but
what together we can do for
the freedom of man.”
Intellectual
stimulation
Lyndon Johnson 1963–1969 “If future generations are to
remember us more with gratitude
than sorrow, we must achieve
more than just the miracles of
technology. We must also leave
them a glimpse of the world as it
was created, not just as it looked
when we got through with it.”
Idealized influence
Ronald Reagan 1981–1989 “General Secretary Gorbachev,
if you seek peace, if you seek
prosperity for the Soviet Union and
Eastern Europe, if you seek liber-
alization: Come here to this gate!
Mr. Gorbachev, open this gate! Mr.
Gorbachev, tear down this wall!”
Idealized influence
Bill Clinton 1993–2001 “To realize the full possibilities
of this economy, we must reach
beyond our own borders, to shape
the revolution that is tearing down
barriers and building new net-
works among nations and individu-
als, and economies and cultures:
globalization. It’s the central reality
of our time.”
Intellectual
stimulation
Sources: J.S. Mio, R.E. Riggio, S. Levin, and R. Reese, “Presidential Leadership and Charisma: The Effects of Metaphor,”
Leadership Quarterly 16 (2005), pp. 287–94; http://www.usa-patriotism.com/quotes/_list.htm.
Final PDF to printer
463C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 463 10/17/17 11:41 AM
FIGURE 14-6 Why Are Some Leaders More Effective Than Others?
Optimal Choice of Decision-Making Styles
Laissez-Faire
Transactional:
Passive Management-
by-Exception
Optimal Mix of Transactional and Transformational Behaviors
Optimal Mix of Day-to-Day Behaviors
LEADER
EFFECTIVENESS
Consideration
Initiating
Structure
Facilitative
Style
Autocratic
Style
Consultative
Style
Delegative
Style
Transactional:
Active Management-
by-Exception
Transactional:
Contingent-Reward
Transformational
styles, do they choose the most effective combination of leader and follower control in terms of
the autocratic, consultative, facilitative, and delegative styles, particularly considering the impor-
tance of the decision and the expertise in the unit? In terms of day-to-day behaviors, do they
engage in adequate levels of initiating structure and consideration? Finally, do they utilize an effec-
tive combination of transactional leadership behaviors, such as contingent reward, and transfor-
mational leadership behaviors, such as idealized influence, inspirational motivation, intellectual
stimulation, and individualized consideration?
Final PDF to printer
464 C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 464 10/17/17 11:41 AM
H O W I M P O R TA N T I S L E A D E R S H I P ?
How important is leadership? As with some other topics in organizational behavior, that’s a
complicated question because “leadership” isn’t just one thing. Instead, all of the styles and
behaviors summarized in Figure 14-6 have their own unique importance. However, transforma-
tional leadership stands apart from the rest to some extent, with particularly strong effects in
organizations. For example, transformational leadership is more strongly related to unit-focused
measures of leadership effectiveness, like the kind shown in the top panel of Table 14-1.106 Units
led by a transformational leader tend to be more financially successful and bring higher-quality
products and services to market at a faster rate.107 Transformational leadership is also more
strongly related to dyad-focused measures of leader effectiveness, like the kind shown in the
bottom panel of Table 14-1. Transformational leaders tend to foster leader–member exchange
relationships that are of higher quality, marked by especially strong levels of mutual respect and
obligation.108
What if we focus specifically on the two outcomes in our integrative model of OB: perfor-
mance and commitment? Figure 14-7 summarizes the research evidence linking transforma-
tional leadership to those two outcomes. The figure reveals that transformational leadership
indeed affects the job performance of the employees who report to the leader. Employees with
transformational leaders tend to have higher levels of task performance and engage in higher
levels of citizenship behaviors.109 Why? One reason is that employees with transformational
leaders have higher levels of motivation than other employees.110 They feel a stronger sense of
psychological empowerment, feel more self-confident, and set more demanding work goals for
themselves.111 Transformational leaders also help their followers frame stressful situations in
such a way that they are better able to cope with hindrance stressors and to be engaged by chal-
lenge stressors.112 (See Chapter 5 for a detailed discussion of these stressors.) They also trust
the leader more, making them willing to exert extra effort even when that effort might not be
immediately rewarded.113
Figure 14-7 also reveals that employees with transformational leaders tend to be more com-
mitted to their organization.114 They feel a stronger emotional bond with their organization and
a stronger sense of obligation to remain present and engaged in their work.115 Why? One reason
is that employees with transformational leaders have higher levels of job satisfaction than other
employees.116 One study showed that transformational leaders can make employees feel that
their jobs have more variety and significance, enhancing intrinsic satisfaction with the work
itself.117 Other studies have shown that charismatic leaders express positive emotions more
frequently and that those emotions are “caught” by employees through a sort of “emotional
contagion” process.118 For example, followers of transformational leaders tend to feel more
optimism and less frustration during their workday, which makes it a bit easier to stay commit-
ted to work.119
Although leadership is very important to unit effectiveness and the performance and com-
mitment of employees, there are contexts in which the importance of the leader can be reduced.
The substitutes for leadership model suggests that certain characteristics of the situation can con-
strain the influence of the leader, making it more difficult for the leader to influence employee
performance.120 Those situational characteristics come in two varieties, as shown in Table 14-5.
Substitutes reduce the importance of the leader while simultaneously providing a direct benefit
to employee performance. For example, a cohesive work group can provide its own sort of gov-
erning behaviors, making the leader less relevant, while providing its own source of motivation
and job satisfaction. Neutralizers, in contrast, only reduce the importance of the leader; they
themselves have no beneficial impact on performance.121 For example, spatial distance lessens the
impact of a leader’s behaviors and styles, but distance itself has no direct benefit for employee job
performance.
The substitutes for leadership model offers a number of prescriptions for a better understand-
ing of leadership in organizations. First, it can be used to explain why a leader who seemingly
“does the right things” doesn’t seem to be making any difference.122 It may be that the leader’s
14.6
How does leadership affect
job performance and orga-
nizational commitment?
Final PDF to printer
465C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 465 10/17/17 11:41 AM
FIGURE 14-7 Effects of Transformational Leadership on Performance and Commitment
Sources: T.A. Judge and R.F. Piccolo, “Transformational and Transactional Leadership: A Meta-Analytic Test of Their
Relative Validity,” Journal of Applied Psychology 89 (2004), pp. 755–68; J.P. Meyer, D.J. Stanley, L. Herscovitch, and L.
Topolnytsky, “Affective, Continuance, and Normative Commitment to the Organization: A Meta-Analysis of Antecedents,
Correlates, and Consequences,” Journal of Vocational Behavior 61 (2002), pp. 20–52; and P.M. Podsakoff, S.B. MacKenzie,
J.B. Paine, and D.G. Bachrach, “Organizational Citizenship Behaviors: A Critical Review of the Theoretical and Empirical
Literature and Suggestions for Future Research,” Journal of Management 26 (2000), pp. 513–63.
Transformational leadership has a moderate positive e�ect on Performance. Employees
with transformational leaders tend to have higher levels of Task Performance. They are
also more likely to engage in Citizenship Behavior. Less is known about the e�ects of
transformational leadership on Counterproductive Behavior.
Transformational leadership has a strong positive e�ect on Commitment. Employees
with transformational leaders tend to have higher levels of A�ective Commitment and
higher levels of Normative Commitment. Transformational leadership has no e�ect on
Continuance Commitment.
Transformational
Leadership
Job
Performance
Organizational
Commitment
Transformational
Leadership
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
TABLE 14-5 Leader Substitutes and Neutralizers
SUBSTITUTES DESCRIPTION
Task feedback Receiving feedback on performance from the task itself
Training & experience Gaining the knowledge to act independently of the leader
Professionalism Having a professional specialty that offers guidance
Staff support Receiving information and assistance from outside staff
Group cohesion Working in a close-knit and interdependent work group
Intrinsic satisfaction Deriving personal satisfaction from one’s work
NEUTRALIZERS DESCRIPTION
Task stability Having tasks with a clear, unchanging sequence of steps
Formalization Having written policies and procedures that govern one’s job
Inflexibility Working in an organization that prioritizes rule adherence
Spatial distance Being separated from one’s leader by physical space
Source: Adapted from S. Kerr and J.M. Jermier, “Substitutes for Leadership: Their Meaning and Measurement,” Organiza-
tional Behavior and Human Performance 22 (1978), pp. 375–403.
Final PDF to printer
466 C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 466 10/17/17 11:41 AM
work context possesses high levels of neutralizers and substitutes. Second, it can be used to explain
what to do if an ineffective person is in a leadership role with no immediate replacement waiting
in the wings.123 If the leader can’t be removed, perhaps the organization can do things to make
that leader more irrelevant. Studies of the substitutes for leadership model have been inconsistent
in showing that substitutes and neutralizers actually make leaders less influential in the predicted
manner.124 What is clearer is that the substitutes in Table 14-5 have beneficial effects on the job
performance and organizational commitment of employees. In fact, the beneficial effects of the
substitutes is sometimes even greater than the beneficial effects of the leader’s own behaviors and
styles. Some leadership experts even recommend that leaders set out to create high levels of the
substitutes in their work units wherever possible, even if the units might ultimately wind up “run-
ning themselves.”125
A P P L I C AT I O N : L E A D E R S H I P T R A I N I N G
Given the importance of leadership, what can organizations do to maximize the effectiveness
of their leaders? One method is to spend more time training them. As mentioned in Chapter
8, organizations spend more than $150 billion on employee learning and development, and
much of that is devoted to management and supervisory training.126 One training analyst
explains the increasing emphasis on leadership training this way: “The biggest problem that
companies face today is an acute shortage of midlevel managers. They look around and just
don’t have enough qualified people.”127 This is exactly the determination that Walmart’s presi-
dent and CEO Bill Simon made when he instituted a 16-week military-style leadership training
program. Walmart’s senior vice president of talent development, Celia Swanson, says, “Our
analysis showed we were capable of building new stores faster than we could prepare new
store managers.”128
Leadership training programs often focus on very specific issues, like conducting more accu-
rate performance evaluations, being a more effective mentor, structuring creative problem solving,
or gaining more cultural awareness and sensitivity.129 However, training programs can also focus
on much of the content covered in this chapter. For example, content could focus on contextual
considerations that alter the effectiveness of decision-making styles or particular leader behaviors,
such as initiating structure and consideration. This is exactly what Campbell Soup Company is
doing through its “CEO Institute”—a two-year program focused on personal leadership develop-
ment.130 Farmer’s Insurance puts all of its upper-level executives through a program that gives
them direct feedback from their peers on their leadership behaviors. The executives use this infor-
mation to create individual leadership development plans.131
It turns out that many training programs focus on transformational leadership content, and
research suggests that those programs can be effective.132 One study of transformational lead-
ership training occurred in one of the largest bank chains in Canada.133 Managers at all of the
branches in one region were randomly assigned to either a transformational training group or
a control group. The managers in the training group took part in a one-day training session that
began by asking them to describe the best and worst leaders they had ever encountered. Where
applicable, the behaviors mentioned as belonging to the best leaders were framed around trans-
formational leadership. The transformational dimensions were then described in a lecture-style
format. Participants set goals for how they could behave more transformationally and engaged
in role-playing exercises to practice those behaviors. The managers then created specific action
plans, with progress on those plans monitored during four “booster sessions” over the next month.
The results of the study showed that managers who participated in the training were rated as more
transformational afterward. More importantly, their employees reported higher levels of organi-
zational commitment, and their branches enjoyed better performance in terms of personal loan
sales and credit card sales.
14.7
Can leaders be trained to
be more effective?
Final PDF to printer
467C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 467 10/17/17 11:41 AM
14.1 Leadership is defined as the use of power and influence to direct the activities of followers
toward goal achievement. An “effective leader” improves the performance and well-being
of his or her overall unit, as judged by profit margins, productivity, costs, absenteeism,
retention, employee surveys, and so forth. An “effective leader” also cultivates high-quality
leader–member exchange relationships on a dyadic basis through role taking and role mak-
ing processes.
14.2 Leader emergence has been linked to a number of traits, including conscientiousness,
disagreeableness, openness, extraversion, general cognitive ability, energy level, stress toler-
ance, and self-confidence. Of that set, the last six traits also predict leader effectiveness.
14.3 Leaders can use a number of styles to make decisions. Beginning with high leader control
and moving to high follower control, they include autocratic, consultative, facilitative, and
delegative styles. According to the time-driven model of leadership, the appropriateness
of these styles depends on decision significance, the importance of commitment, leader
expertise, the likelihood of commitment, shared objectives, employee expertise, and team-
work skills.
14.4 Most of the day-to-day leadership behaviors that leaders engage in are examples of either
initiating structure or consideration. Initiating structure behaviors include initiation, orga-
nization, and production sorts of duties. Consideration behaviors include membership,
integration, communication, recognition, and representation sorts of duties.
14.5 Transactional leadership emphasizes “carrot-and-stick” approaches to motivating employ-
ees, whereas transformational leadership fundamentally changes the way employees view
their work. More specifically, transformational leadership inspires employees to commit
to a shared vision or goal that provides meaning and challenge to their work. The specific
behaviors that underlie transformational leadership include the “Four I’s”: idealized influ-
ence, inspirational motivation, intellectual stimulation, and individualized consideration.
14.6 Transformational leadership has a moderate positive relationship with job performance
and a strong positive relationship with organizational commitment. It has stronger effects
on these outcomes than other leadership behaviors.
14.7 Leaders can be trained to be effective. In fact, such training can be used to increase trans-
formational leadership behaviors, despite the fact that charisma is somewhat dependent on
personality and genetic factors.
TA K E AWAY S
K E Y T E R M S
• Leadership p. 444
• Leader–member exchange
theory p. 444
• Role taking p. 444
• Role making p. 444
• Leader effectiveness p. 446
• Leader emergence p. 446
• Autocratic style p. 447
• Consultative style p. 448
• Facilitative style p. 448
• Delegative style p. 448
• Time-driven model of leadership p. 449
• Initiating structure p. 452
• Consideration p. 452
• Life cycle theory of leadership p. 453
• Readiness p. 453
• Telling p. 453
• Selling p. 455
• Participating p. 455
• Delegating p. 455
• Transformational leadership p. 456
• Laissez-faire leadership p. 457
Final PDF to printer
468 C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 468 10/17/17 11:41 AM
14.1 Before reading this chapter, which statement did you feel was more accurate: “Leaders are
born” or “Leaders are made”? How do you feel now, and why do you feel that way?
14.2 The time-sensitive model of leadership argues that leaders aren’t just concerned about the
accuracy of their decisions when deciding among autocratic, consultative, facilitative, and
delegative styles; they’re also concerned about the efficient use of time. What other consid-
erations could influence a leader’s use of the four decision-making styles?
14.3 The time-sensitive and life cycle models of leadership both potentially suggest that leaders
should use different styles and behaviors for different followers. Can you think of any nega-
tive consequences of that advice? How could those negative consequences be managed?
14.4 Consider the four dimensions of transformational leadership: idealized influence, inspi-
rational motivation, intellectual stimulation, and individualized consideration. Which of
those dimensions would you respond to most favorably? Why?
14.5 Can you think of any potential “dark sides” to transformational leadership? What would
they be?
D I S C U S S I O N Q U E S T I O N S
When she gets out of bed, what does Mary Barra (CEO of GM) think about? “I spend a lot
of early mornings thinking about executing our plan quickly. The big thing I worry about is
speed,” says Barra. CFO Chuck Stevens agrees, highlighting a statement from the faulty ignition
switch internal investigation about the culture at GM, “No sense of urgency. No accountability
or responsibility. A siloed mentality.” Barra has reacted quickly and with force to make culture
change a reality by implementing a number of initiatives including “GM 2020,” which is a
program designed to create cross-functional labs throughout the company. Barra has also pushed
hard to create a new culture of speed by creating a year-long transformational leadership course
for upper-level executives that Barra personally leads. It’s not focused on company strategy, but
rather the interpersonal skills she believes are necessary to create change. HR chief John Quat-
trone says, “Mary believes that if we change the behaviors [of top managers], people who work
for us will see that and emulate it.”
Barra’s major vision for GM is to lead in safe autonomous driving. This puts them directly up
against the fast-moving cultures of Google, Uber, and Tesla. Barra believes GM’s recent acquisi-
tion of Cruise Automation ($581 million) puts them square in the driver’s seat. After a success-
ful, high-profile test of an autonomous Chevy Bolt (with Barra riding in the back seat), Barra
told a large group of Cruise employees, “If somebody [at GM] says you can’t have something, or
you can’t do something, or it’s going to take this much time, and it doesn’t make sense to you,
challenge them. I want you to take the energy and speed and how you look at doing things and
drive it into the core of GM.”
C A S E : G E N E R A L M OTO R S
• Transactional leadership p. 457
• Passive management-by-exception p. 457
• Active management-by-exception p. 457
• Contingent reward p. 457
• Idealized influence p. 458
• Inspirational motivation p. 460
• Intellectual stimulation p. 460
• Individualized consideration p. 460
• Substitutes for leadership model p. 464
• Substitutes p. 464
• Neutralizers p. 464
Final PDF to printer
469C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 469 10/17/17 11:41 AM
GM believes that they have the advantage. GM product chief Mark Reuss says, “The piece
that is not well understood outside of the automotive industry is how hard it is to take technology
and integrate it into a car. It seems like you should be able to layer it in and have it work and that
would be great. Right. The effort to integrate that into the car is equal to or more than the tech-
nology itself. A car has to work right every time, all the time.” So far, the technology companies
have spent billions of dollars in development and have little to show for it. Still, Barra is not will-
ing to bask in success for long. Onstage at GM’s headquarters she told her group, “Don’t confuse
progress with winning. Are you doing what you can? Or are you doing what it takes to win?”
14.1 Do you think GM can outduel the technology companies for safe autonomous driving
vehicles?
14.2 Would you consider Mary Barra to be the prototypical transformational leader? In what
ways does she fit or not fit that model?
14.3 Given GM’s history, why does Barra put a premium on her executives’ leadership
behaviors?
Source: M. DeBord. “Mary Barra Is About to Become the Most Influential CEO in GM History,” BusinessInsider.com,
February 17, 2017: http://www.businessinsider.com/mary-barra-most-influential-ceo-in-gm-history-2017-2; C. Fussman.
“What I’ve Learned: Mary Barra,” Esquire.com, April 26, 2016: http://www.esquire.com/lifestyle/cars/interviews/a44325/
what-ive-learned-mary-barra/; P. Ingrassia. “Hail Mary,” Fortune, September 15, 2016, pp. 84–89; B. Luscombe. “13 Ques-
tions with Mary Barra,” Time, June 2, 2016: http://time.com/4354740/mary-barra/; and R. Tetzeli. “The Accelerators,”
Fast Company, November 2016, pp. 68–74, 100.
E X E R C I S E : TA K E M E TO YO U R L E A D E R
The purpose of this exercise is to explore the commonalities in effective leadership across dif-
ferent types of leaders. This exercise uses groups, so your instructor will either assign you to a
group or ask you to create your own group. The exercise has the following steps:
14.1 Imagine that a space alien descended down to Earth and actually uttered the famous line,
“Take me to your leader!” Having read a bit about leadership, your group knows that lead-
ers come in a number of shapes and sizes. Instead of showing the alien just one leader,
your group decides it might be beneficial to show the alien a whole variety of leaders. Each
member should choose one type of leader from the table to focus on (each member must
choose a different type). Try to choose examples that are personally interesting but that also
maximize the diversity within the group.
Orchestra Conductor Fashion Designer Drummer in Rock Band
Coach Personal Tax Accountant Point Guard in Basketball
Film Director Nightclub DJ Bartender
College Professor Fitness Trainer Sheriff
Talk-Show Host Prison Guard Millionaire Philanthropist
Stockbroker Real Estate Broker Agent
Psychotherapist MBA Program Director Auditor
Campaign Manager Construction Project Supervisor CEO
Diplomat Sports Color Commentator Vice President of Marketing
Final PDF to printer
470 C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 470 10/17/17 11:41 AM
14.2 Individually, jot down some thoughts that highlight for the alien what is truly distinctive
about “leadership” for this type of leader. For example, if you were showing the alien a
coach, you might call attention to how coaches cannot control the game itself very much
but instead must make their influence felt on the practice field by instilling skills while being
anticipatory in their thinking. You might also call attention to how coaches need to be cre-
ative and adapt quickly during the game itself.
14.3 Share the thoughts you’ve jotted down in your groups, going from member to member, with
each person describing what “leadership” means for the given types of leaders.
14.4 Once all these thoughts about the various types of leaders have been shared, think about
whether there are certain traits, styles, or behaviors that are universal across all the types.
For example, maybe all of the types have some kind of organizing quality to them (e.g., lead-
ers need to be organized, leaders need to do things to help others be organized). Create a
list of four “leadership universals.”
14.5 Now consider the situational challenges faced by the types of leaders you discussed, includ-
ing challenges rooted in the task, their followers, or the surrounding work context. For
example, the fact that the coach has little direct impact on the game is a situational chal-
lenge. Do other leader types also grapple with lack of direct control? Create a list of four
“situational challenges” faced by multiple types of leaders.
14.6 Elect a group member to write the group’s four universals and four challenges on the board.
14.7 Class discussion (whether in groups or as a class) should center on whether the theories
described in the chapter discuss some of the leadership universals identified by the groups.
Are there theories that also include some of the situational challenges uncovered? Which
leadership theory seems best equipped for explaining effective leadership across a wide vari-
ety of leader types?134
14.1 Yukl, G. Leadership in
Organizations, 4th ed.
Englewood Cliffs, NJ:
Prentice Hall, 1998.
14.2 Ibid.
14.3 Ibid.
14.4 Ibid.
14.5 Dansereau, F. Jr.; G.
Graen; and W.J. Haga.
“A Vertical Dyad
Linkage Approach
to Leadership within
Formal Organiza-
tions: A Longitudinal
Investigation of the
Role Making Pro-
cess.” Organizational
Behavior and Human
Performance 13
(1975), pp. 46–78;
Graen, G.; M. Novak;
and P. Sommerkamp.
“The Effects of
Leader–Member
Exchange and Job
Design on Productiv-
ity and Satisfaction:
Testing a Dual Attach-
ment Model.” Organi-
zational Behavior and
Human Performance
30 (1982), pp.
109–31; Graen, G.B.,
and M. Uhl-Bien.
“Relationship-Based
Approach to Leader-
ship: Development
of Leader–Member
Exchange (LMX) The-
ory of Leadership over
25 Years: Applying
a Multi-Level Multi-
Domain Perspective.”
Leadership Quarterly
6 (1995), pp. 219–47;
and Liden, R.C.; R.T.
Sparrowe; and S.J.
Wayne. “Leader–
Member Exchange
Theory: The Past
and Potential for the
Future.” In Research in
Personnel and Human
Resources Manage-
ment, Vol. 15, ed. G.R.
Ferris. Greenwich,
CT: JAI Press, 1997,
pp. 47–119.
E N D N OT E S
Final PDF to printer
471C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 471 10/17/17 11:41 AM
14.6 Graen, G.B., and T.
Scandura. “Toward a
Psychology of Dyadic
Organizing.” In
Research in Organiza-
tional Behavior, Vol. 9,
ed. L.L. Cummings
and B.M. Staw. Green-
wich, CT: JAI Press,
1987, pp. 175–208.
14.7 Ibid.
14.8 Graen and Uhl-Bien,
“Relationship-
Based Approach to
Leadership.”
14.9 Ibid.
14.10 Bauer, T.N., and S.G.
Green. “Development
of Leader–Member
Exchange: A Longitu-
dinal Test.” Academy
of Management Jour-
nal 39 (1996),
pp. 1538–67; Gerst-
ner, C.R., and D.V.
Day. “Meta-Analytic
Review of Leader–
Member Exchange
Theory: Correlates
and Construct Issues.”
Journal of Applied Psy-
chology 82 (1997), pp.
827–44; and Liden,
R.C.; S.J. Wayne; and
D. Stillwell. “A Longi-
tudinal Study on the
Early Development
of Leader–Member
Exchanges.” Journal of
Applied Psychology 78
(1993), pp. 662–74.
14.11 Ballinger, G.A., D.W.
Lehman, and F.D.
Schoorman. “Leader–
Member Exchange
and Turnover before
and after Succession
Events.” Organiza-
tional Behavior and
Human Decision
Processes 113 (2010),
pp. 25–36.
14.12 Graen and Uhl-Bien,
“Relationship-
Based Approach to
Leadership.”
14.13 Martin, R., Guillaume,
Y., Thomas, G., Lee,
A., and O. Epitropaki.
“Leader–Member
Exchange (LMX) and
Performance: A Meta-
Analytic Review.”
Personnel Psychol-
ogy 69 (2016), pp.
67–121; Ilies, R.; J.D.
Nahrgang; and F.P.
Morgeson. “Leader–
Member Exchange
and Citizenship
Behaviors: A Meta-
Analysis.” Journal of
Applied Psychology 92
(2007), pp. 269–77;
and Dulebohn, J.H.;
W.H. Bommer; R.C.
Liden; R.L. Brouer;
and G.R. Ferris. “A
Meta-Analysis of
Antecedents and Con-
sequences or Leader–
Member Exchange:
Integrating the Past
with an Eye Toward
the Future.” Journal
of Management 38
(2012), pp. 1715–59.
14.14 Rockstuhl, T.; J.H.
Dulebohn; S. Ang;
and L.M. Shore.
“Leader–Member
Exchange (LMX)
and Culture: A Meta-
Analysis of Correlates
of LMX across 23
Countries.” Journal
of Applied Psychology
97 (2012),
pp. 1097–1130.
14.15 Stogdill, R.M. “Per-
sonal Factors Associ-
ated with Leadership:
A Survey of the
Literature.” Journal of
Applied Psychology 54
(1948), pp. 259–69.
14.16 Den Hartog, D.N.,
and P.L. Koopman.
“Leadership in Organi-
zations.” In Handbook
of Industrial, Work, and
Organizational Psychol-
ogy, Vol. 2, ed. N.
Anderson; D.S. Ones;
H.K. Sinangil; and C.
Viswesvaran. Thou-
sand Oaks, CA: Sage,
2002, pp. 166–87.
14.17 Yukl, Leadership in
Organizations; and
Zaccaro, S.J. “Trait-
Based Perspectives of
Leadership.” American
Psychologist 62 (1998),
pp. 6–16.
14.18 DeRue, D.S., J.D. Nah-
rgang; N. Wellman;
and S.E. Humphrey.
“Trait and Behavioral
Theories of Leader-
ship: An Integration
and Meta-Analytic
Test of Their Validity.”
Personnel Psychology
64 (2011), pp. 7–52.
14.19 Vroom, V.H.
“Leadership and the
Decision-Making
Process.” Organiza-
tional Dynamics 28
(2000), pp. 82–94;
and Yukl, Leadership
in Organizations.
14.20 Lueneburger, C. “Les-
sons from Chrysler:
How to Rev Up a
Purpose-Driven Cul-
ture.” The Guardian,
July 31, 2014: https://
www.theguardian
.com/sustainable-
business/2014/jul/31/
leaders-chrysler-
bankruptcy-automobile-
marchionne-ceo-detroit;
and Taylor, A.
Final PDF to printer
472 C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 472 10/17/17 11:41 AM
“Chrysler’s Speed
Merchant.” Fortune,
September 6,
2010, p. 82.
14.21 Vroom, “Leadership
and the Decision-
Making Process”; and
Yukl, Leadership in
Organizations.
14.22 Source: Bryant, A.
Quick and Nimble:
Lessons from Leading
CEOs on How to Cre-
ate a Culture of Innova-
tion. New York: Times
Books, 2014.
14.23 Vroom, “Leadership
and the Decision-
Making Process”; and
Yukl, Leadership in
Organizations.
14.24 Source: Bryant, A. The
Corner Office: Indispens-
able and Unexpected
Lessons from CEOs on
How to Lead and Suc-
ceed. New York: Times
Books, 2011.
14.25 Vroom, “Leadership
and the Decision-
Making Process”; and
Yukl, Leadership in
Organizations.
14.26 Source: Mullany,
A. “Can American
Apparel Mend the
Seam?” Fast Company,
September 2016, pp.
88-96.
14.27 Source: Bryant, A. The
Corner Office: Indispens-
able and Unexpected
Lessons from CEOs on
How to Lead and Suc-
ceed. New York: Times
Books, 2011.
14.28 Vroom, “Leadership
and the Decision-
Making Process.”
14.29 Miller, K.I., and P.R.
Monge. “Participation,
Satisfaction, and
Productivity: A Meta-
Analytic Review.”
Academy of Management
Journal 29 (1986),
pp. 727–53; and
Wagner, J.A. III. “Par-
ticipation’s Effects
on Performance and
Satisfaction: A Recon-
sideration of Research
Evidence.” Academy
of Management Review
19 (1994), pp. 312–30.
14.30 Vroom, “Leadership
and the Decision-
Making Process.”
14.31 Rogelberg, S.G.; D.J.
Leach; P.B. Warr; and
J.L. Burnfield. “ ‘Not
Another Meeting!’
Are Meeting Time
Demands Related
to Employee Well-
Being?” Journal of
Applied Psychology 91
(2006), pp. 86–96.
14.32 Source: Yang, J.L.
“What’s the Secret
to Running Great
Meetings?” Fortune,
October 27, 2008, p.
26.
14.33 Terlep, S. “GM’s Plod-
ding Culture Vexes Its
Impatient CEO.” The
Wall Street Journal
Online, April 7, 2010.
14.34 Vroom, “Leadership
and the Decision-
Making Process”;
Vroom, V.H., and A.G.
Jago. The New Leader-
ship: Managing Partici-
pation in Organizations.
Englewood Cliffs, NJ:
Prentice Hall, 1988;
Vroom, V.H., and A.G.
Jago. “Decision Mak-
ing as a Social Process:
Normative and
Descriptive Models
of Leader Behavior.”
Decision Sciences 5
(1974), pp. 743–69;
and Vroom, V.H., and
P.W. Yetton. Leader-
ship and Decision
Making. Pittsburgh,
PA: University of Pitts-
burgh Press, 1973.
14.35 Source: Adams, R.,
and L.A. Schuker.
“Time Inc. CEO
Ousted after Six
Months.” The Wall
Street Journal Online,
February 18, 2011.
14.36 Aditya, R.N.; R.J.
House; and S. Kerr.
“Theory and Practice
of Leadership: Into
the New Millen-
nium.” In Industrial
and Organizational
Psychology: Linking
Theory with Practice,
ed. C.L. Cooper and
E.A. Locke. Malden,
MA: Blackwell, 2000,
pp. 130–65; House,
R.J., and R.N. Aditya.
“The Social Scientific
Study of Leadership:
Quo Vadis?” Journal
of Management 23
(1997), pp. 409–73;
and Yukl, Leadership
in Organizations.
14.37 Vroom, V.H., and
A.G. Jago. “On
the Validity of the
Vroom-Yetton Model.”
Journal of Applied
Psychology 63 (1978),
pp. 151–62. See also
Vroom and Yetton,
Leadership and Deci-
sion Making; Vroom
and Jago, The New
Leadership; and Field,
R.H.G. “A Test of the
Vroom-Yetton Norma-
tive Model of Leader-
ship.” Journal of
Applied Psychology 67
(1982), pp. 523–32.
Final PDF to printer
473C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 473 10/17/17 11:41 AM
14.38 Vroom and Yetton,
Leadership and Deci-
sion Making.
14.39 Source: Bryant, A.
The Corner Office:
Indispensable and
Unexpected Lessons
from CEOs on How
to Lead and Succeed.
New York: Times
Books, 2011.
14.40 Hemphill, J.K. Leader
Behavior Description.
Columbus: Ohio State
University, 1950. Cited
in Fleishman, E.A.;
E.F. Harris; and H.E.
Burtt. Leadership and
Supervision in Industry:
An Evaluation of a
Supervisory Training
Program. Columbus:
Bureau of Educational
Research, Ohio State
University, 1955.
14.41 Hemphill, J.K., and
A.E. Coons. “Develop-
ment of the Leader
Behavior Description
Questionnaire.” In
Leader Behavior: Its
Description and Mea-
surement, ed. R.M. Stog-
dill and A.E. Coons.
Columbus: Bureau of
Business Research,
Ohio State University,
1957, pp. 6–38.
14.42 Fleishman, E.A.
“The Description of
Supervisory Behav-
ior.” Journal of Applied
Psychology 37 (1953),
pp. 1–6; Fleishman
et al., Leadership
and Supervision in
Industry; Hemphill
and Coons, “Develop-
ment of the Leader
Behavior Description
Questionnaire”; and
Halpin, A.W., and
B.J. Winer. Studies in
Aircrew Composition:
The Leadership Behav-
ior of the Airplane
Commander (Techni-
cal Report No. 3).
Columbus: Personnel
Research Board, Ohio
State University, 1952.
Cited in Fleishman
et al., Leadership and
Supervision in Industry.
14.43 Fleishman, “The
Description of Super-
visory Behavior”;
Fleishman et al., Lead-
ership and Supervision
in Industry; and Fleish-
man, E.A., and D.R.
Peters. “Interpersonal
Values, Leadership
Attitudes, and Mana-
gerial ‘Success.’” Per-
sonnel Psychology 15
(1962), pp. 127–43.
14.44 Yukl, Leadership in
Organizations.
14.45 Adams, E. “A Day in
the Life of J.Crew”s
Mickey Drexler.”
Racked.com, June 2,
2015: http://
www.racked.com/
2015/6/2/8706979/
mickey-drexler-j-
crew-office; and
Paumgarten, N. “The
Merchant.” The New
Yorker, September 20,
2010, pp. 74–87.
14.46 Fleishman, “The
Description of Super-
visory Behavior”;
Fleishman et al.,
Leadership and Super-
vision in Industry; and
Fleishman and Peters,
“Interpersonal Values.”
14.47 Yukl, Leadership in
Organizations.
14.48 Source: Brady, D.
“Can GE Still
Manage?” Bloomberg
Businessweek, April 25,
2010, pp. 27–32.
14.49 Garvin, D.A. “How
Google Sold Its
Engineers on Manage-
ment.” Harvard Busi-
ness Review 91 (2013),
pp. 74–82; and Bryant,
A. Quick and Nimble.
14.50 Katz, D.; N. Mac-
coby; and N. Morse.
Productivity, Supervi-
sion, and Morale in an
Office Situation. Ann
Arbor: Institute for
Social Research, Uni-
versity of Michigan,
1950; Katz, D.; N.
Maccoby; G. Gurin;
and L. Floor. Pro-
ductivity, Supervision,
and Morale among
Railroad Workers.
Ann Arbor: Survey
Research Center, Uni-
versity of Michigan,
1951; Katz, D., and
R.L. Kahn. “Some
Recent Findings in
Human-Relations
Research in Industry.”
In Readings in Social
Psychology, ed. E.
Swanson; T. New-
comb; and E. Hartley.
New York: Holt, 1952,
pp. 650–65; Likert, R.
New Patterns of Man-
agement. New York:
McGraw-Hill, 1961;
and Likert, R. The
Human Organization.
New York: McGraw-
Hill, 1967.
14.51 Fleishman, E.A.
“Twenty Years of
Consideration and
Structure.” In Current
Developments in the
Study of Leadership, ed.
E.A. Fleishman and
J.G. Hunt. Carbon-
dale: Southern Illinois
Press, 1973, pp. 1–37.
14.52 Judge, T.A.; R.F.
Piccolo; and R. Ilies.
Final PDF to printer
474 C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 474 10/17/17 11:41 AM
“The Forgotten
Ones? The Validity
of Consideration and
Initiating Structure in
Leadership Research.”
Journal of Applied
Psychology 89 (2004),
pp. 36–51.
14.53 Aditya et al., “Theory
and Practice of Leader-
ship”; DenHartog
and Koopman,
“Leadership in
Organizations”;
House and Aditya,
“The Social Scientific
Study of Leadership”;
Korman, A.K. “ ‘Con-
sideration,’ ‘Initiating
Structure,’ and Orga-
nizational Criteria—A
Review.” Personnel
Psychology 19 (1966),
pp. 349–61; Yukl,
Leadership in Organi-
zations; and Yukl, G.,
and D.D. Van Fleet.
“Theory and Research
on Leadership in
Organizations.” In
Handbook of Industrial
and Organizational
Psychology, Vol. 3, ed.
M.D. Dunnette and
L.M. Hough. Palo
Alto, CA: Consulting
Psychologists Press,
1992, pp. 147–97.
14.54 Judge et al., “The
Forgotten Ones?”
14.55 Source: Brunner, R.
“I’m a Shepherd and
I’m a warrior.” Fast
Company, April 2017,
pp. 58–68, 90–92.
14.56 Hersey, P., and K.H.
Blanchard. “Life Cycle
Theory of Leader-
ship.” Training and
Development Journal,
May 1969, pp. 26–34;
Hersey, P., and K.H.
Blanchard. “So You
Want to Know Your
Leadership Style?”
Training and Develop-
ment Journal, Febru-
ary 1974, pp. 22–37;
Hersey, P., and K.H.
Blanchard. “Revisiting
the Life-Cycle Theory
of Leadership.” Train-
ing and Development,
January 1996,
pp. 42–47; and Hersey,
P., and K.H. Blanchard.
Management of Organi-
zational Behavior: Lead-
ing Human Resources,
9th ed. Upper Saddle
River, NJ: Pearson,
2008.
14.57 Hersey and Blanchard,
Management of Orga-
nizational Behavior.
14.58 Hersey and Blanchard,
“Revisiting the Life-
Cycle Theory of
Leadership.”
14.59 Greenfeld, K.T. “Can
GoPro Rise Again?”
Fast Company,
November 2016,
pp. 76–81, 100.
14.60 Fernandez, C.F., and
R.P. Vecchio. “Situ-
ational Leadership
Revisited: A Test of
an Across-Jobs Per-
spective.” Leadership
Quarterly 8 (1997),
pp. 67–84.
14.61 Graeff, C.L. “Evolu-
tion of Situational
Leadership Theory:
A Critical Review.”
Leadership Quarterly 8
(1997), pp. 153–70.
14.62 Vecchio, R.P.
“Situational Leader-
ship Theory: An
Examination of a
Prescriptive Theory.”
Journal of Applied
Psychology 72 (1987),
pp. 444–51; and
Norris, W.R., and
R.P. Vecchio. “Situ-
ational Leadership
Theory: A Replica-
tion.” Group and
Organization Manage-
ment 17 (1992),
pp. 331–42.
14.63 Vecchio, “Situational
Leadership Theory”;
Norris and Vecchio,
“Situational Leader-
ship Theory: A
Replication”; and
Blank, W.; J.R.
Weitzel; and S.G.
Green. “A Test of
Situational Leadership
Theory.” Personnel
Psychology 43 (1990),
pp. 579–97.
14.64 Fernandez and Vec-
chio, “Situational
Leadership Theory
Revisited.”
14.65 Bass, B.M., and R.E.
Riggio. Transforma-
tional Leadership,
2nd ed. Mahwah, NJ:
Erlbaum, 2006; Bass,
B.M. Leadership and
Performance beyond
Expectations. New
York: Free Press,
1985; and Burns,
L.M. Leadership.
New York: Harper &
Row, 1978.
14.66 Bass, Leadership and
Performance beyond
Expectations.
14.67 Ibid.
14.68 Source: Larson, A.
The President Nobody
Knew. New York:
Popular Library, 1968,
p. 68.
14.69 Source: Truman, H.S.,
Memoirs. New York:
Doubleday, 1956.
Final PDF to printer
475C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 475 10/17/17 11:41 AM
14.70 Bass and Riggio, Trans-
formational Leadership.
14.71 Source: Ibid.; and
Bass, B.M., and
B.J. Avolio. MLQ:
Multifactor Leadership
Questionnaire. Red-
wood City, CA: Mind
Garden, 2000.
14.72 Bass and Riggio,
Transformational Lead-
ership; Bass, Leader-
ship and Performance
Beyond Expectations;
and Burns, Leadership.
14.73 Bass and Riggio, Trans-
formational Leadership.
14.74 Source: Bass, Leader-
ship and Performance
beyond Expectations.
14.75 Source: Bass and
Riggio, Transforma-
tional Leadership; and
Bass and Avolio, MLQ.
14.76 Bass and Riggio,
Transformational
Leadership.
14.77 Source: Ibid.; and Bass
and Avolio, MLQ.
14.78 Bass and Riggio,
Transformational
Leadership.
14.79 Source: Ibid.; and Bass
and Avolio, MLQ.
14.80 Judge, T.A., and R.F.
Piccolo. “Transforma-
tional and Transac-
tional Leadership: A
Meta-Analytic Test of
Their Relative Valid-
ity.” Journal of Applied
Psychology 89 (2004),
pp. 755–68.
14.81 Ibid.
14.82 Bass and Riggio, Trans-
formational Leadership.
14.83 Koehn, N. F. “HIS
Legacy.” Fortune,
November 11, 2009,
pp. 110–14.
14.84 Blumenthal, K. Steve
Jobs: The Man Who
Thought Different. New
York: Feiwel, 2012;
and Isaacson, W. Steve
Jobs. New York:
Simon & Schuster, 2011.
14.85 Kane, Y. I. “Jobs
Quits as CEO.” The
Wall Street Journal
Online, August 25,
2011; and Friedman,
L. “Steve Jobs Takes
Medical Leave of
Absence.” MacWorld,
April 2011, p. 12.
14.86 Source: Bass and
Riggio, Transforma-
tional Leadership; and
Bass and Avolio, MLQ.
14.87 Conger, J.A. “Char-
ismatic and Transfor-
mational Leadership
in Organizations:
An Insider’s Per-
spective on these
Developing Research
Streams.” Leadership
Quarterly 10 (1999),
pp. 145–79.
14.88 Young, J.S., and W.L.
Simon. iCon: Steve
Jobs—The Greatest Sec-
ond Act in the History
of Business. Hoboken,
NJ: Wiley, 2005.
14.89 Johnson, A.M.; P.A.
Vernon; J.M. McCar-
thy; M. Molso; J.A.
Harris; and K.J. Jang.
“Nature vs. Nurture:
Are Leaders Born or
Made? A Behavior
Genetic Investigation
of Leadership Style.”
Twin Research 1
(1998), pp. 216–23.
14.90 Judge, T.A., and J.E.
Bono. “Five-Factor
Model of Personality
and Transformational
Leadership.” Journal of
Applied Psychology 85
(2000), pp. 751–65.
14.91 Bass and Riggio,
Transformational
Leadership.
14.92 Conger, “Charis-
matic and Transfor-
mational Leadership
in Organizations.”
14.93 Source: Bass and
Riggio, Transforma-
tional Leadership;
and Bass and Avolio,
MLQ.
14.94 Young and Simon,
iCon.
14.95 Source: Young and
Simon, iCon.
14.96 Bass and Riggio,
Transformational
Leadership.
14.97 Source: Bass and
Riggio, Transforma-
tional Leadership;
and Bass and Avolio,
MLQ. Ibid.; and Bass
and Avolio, MLQ.
14.98 Source: Isaacson,
Steve Jobs.
14.99 Bass and Riggio,
Transformational
Leadership.
14.100 Source: Ibid.; and
Bass and Avolio, MLQ.
14.101 Young and Simon,
iCon.
14.102 Mio, J.S.; R.E. Rig-
gio; S. Levin; and R.
Reese. “Presidential
Leadership and
Charisma: The
Effects of Meta-
phor.” Leadership
Quarterly 16 (2005),
pp. 287–94.
14.103 Conger, “Charis-
matic and Transfor-
mational Leadership
in Organizations.”
Final PDF to printer
476 C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 476 10/17/17 11:41 AM
14.104 Bligh, M.C.; J.C.
Kohles; and J.R.
Meindl. “Charisma
under Crisis: Presi-
dential Leadership,
Rhetoric, and Media
Responses before
and after the Sep-
tember 11th Terrorist
Attacks.” Leadership
Quarterly 15 (2004),
pp. 211–39.
14.105 Bligh, M.C., and
J.C. Kohles. “The
Enduring Allure
of Charisma: How
Barack Obama Won
the Historic 2008
Presidential Elec-
tion.” Leadership
Quarterly 20 (2009),
pp. 483–92.
14.106 Lowe, K.B.; K.G.
Kroeck; and N.
Sivasubramaniam.
“Effectiveness
Correlates of
Transformational
and Transactional
Leadership: A Meta-
Analytic Review
of the MLQ Litera-
ture.” Leadership
Quarterly 7 (1996),
pp. 385–425.
14.107 Howell, J.M., and
B.J. Avolio. “Trans-
formational Leader-
ship, Transactional
Leadership, Locus
of Control, and Sup-
port for Innovation:
Key Predictors of
Consolidated-
Business-Unit Perfor-
mance.” Journal of
Applied Psychology 78
(1993), pp. 891–902;
Howell, J.M.; D.J.
Neufeld; and B.J.
Avolio. “Examining
the Relationship
of Leadership and
Physical Distance
with Business Unit
Performance.” Lead-
ership Quarterly 16
(2005), pp. 273–85;
Keller, R.T. “Trans-
formational Leader-
ship, Initiating
Structure, and Sub-
stitutes for Leader-
ship: A Longitudinal
Study of Research
and Development
Project Team Perfor-
mance.” Journal of
Applied Psychology 91
(2006), pp. 202–10;
and Waldman, D.A.;
G.G. Ramirez;
R.J. House; and P.
Puranam. “Does
Leadership Matter?
CEO Leadership
Attributes and Profit-
ability under Condi-
tions of Perceived
Environmental
Uncertainty.” Acad-
emy of Management
Journal 44 (2001),
pp. 134–43.
14.108 Howell, J.M., and
K.E. Hall-Merenda.
“The Ties That
Bind: The Impact
of Leader–Member
Exchange, Transfor-
mational and Trans-
actional Leadership,
and Distance on Pre-
dicting Follower Per-
formance.” Journal of
Applied Psychology 84
(1999), pp. 680–94;
Piccolo, R.F.,
and J.A. Colquitt.
“Transformational
Leadership and Job
Behaviors: The Medi-
ating Role of Core
Job Characteristics.”
Academy of Manage-
ment Journal 49
(2006), pp. 327–40;
and Wang, H.; K.S.
Law; R.D. Hackett;
D. Wang; and Z.X.
Chen. “Leader–
Member Exchange
as a Mediator of the
Relationship between
Transformational
Leadership and Fol-
lowers’ Performance
and Organizational
Citizenship Behav-
ior.” Academy of
Management Journal
48 (2005), pp.
420–32.
14.109 Judge and Piccolo,
“Transformational
and Transactional
Leadership”; Pod-
sakoff, P.M.; S.B.
MacKenzie; J.B.
Paine; and D.G.
Bachrach. “Organi-
zational Citizenship
Behaviors: A Critical
Review of the Theo-
retical and Empirical
Literature and Sug-
gestions for Future
Research.” Journal
of Management 26
(2000), pp. 513–63.
14.110 Judge and Piccolo,
“Transformational
and Transactional
Leadership.”
14.111 Avolio, B.J.; W.
Zhu; W. Koh; and
P. Bhatia. “Transfor-
mational Leadership
and Organizational
Commitment:
Mediating Role
of Psychological
Empowerment
and Moderating
Role of Structural
Distance.” Journal
of Organizational
Behavior 25 (2004),
pp. 951–68; Kirkpat-
rick, S.A., and E.A.
Final PDF to printer
477C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 477 10/17/17 11:41 AM
Locke. “Direct and
Indirect Effects of
Three Core Char-
ismatic Leadership
Components on
Performance and
Attitudes.” Journal
of Applied Psychol-
ogy 81 (1996),
pp. 36–51; and
Shamir, B.; E. Zakay;
E. Breinin; and M.
Popper. “Correlates
of Charismatic
Leader Behaviors in
Military Units: Sub-
ordinates’ Attitudes,
Unit Characteristics,
and Superiors’
Appraisals of Leader
Performance.” Acad-
emy of Management
Journal 41 (1998),
pp. 387–409.
14.112 LePine, M.A.; Y.
Zhang; E.R. Craw-
ford; and B.L. Rich.
“Turning Their Pain
to Gain: Charismatic
Leader Influence
on Follower Stress
Appraisal and Job
Performance.” Acad-
emy of Management
Journal 59 (2016),
pp. 1036–59.
14.113 Podsakoff, P.M.;
S.B. MacKenzie;
and W.H. Bommer.
“Transformational
Leader Behaviors
and Substitutes for
Leadership as Deter-
minants of Employee
Satisfaction, Com-
mitment, Trust, and
Organizational Citi-
zenship Behaviors.”
Journal of Manage-
ment 22 (1996), pp.
259–98; Podsakoff,
P.M.; S.B. MacKen-
zie; R.H. Moorman;
and R. Fetter. “Trans-
formational Leader
Behaviors and their
Effects on Followers’
Trust in Leader,
Satisfaction, and
Organizational Citi-
zenship Behaviors.”
Leadership Quarterly
1 (1990), pp.
107–42; and Shamir
et al., “Correlates of
Charismatic Leader
Behaviors.”
14.114 Meyer, J.P.; D.J.
Stanley; L. Her-
scovitch; and L.
Topolnytsky. “Affec-
tive, Continuance,
and Normative
Commitment to
the Organization:
A Meta-Analysis
of Antecedents,
Correlates, and
Consequences.”
Journal of Vocational
Behavior 61 (2002),
pp. 20–52.
14.115 Walumbwa, F.O.;
B.J. Avolio; and W.
Zhu. “How Transfor-
mational Leadership
Weaves Its Influence
on Individual Job
Performance: The
Role of Identification
and Efficacy Beliefs.”
Personnel Psychology
61 (2008),
pp. 793–825.
14.116 Judge and Piccolo,
“Transformational
and Transactional
Leadership.”
14.117 Piccolo and Colquitt,
“Transformational
Leadership and Job
Behaviors.” See also
Bono, J.E., and T.A.
Judge. “Self-
Concordance at
Work: Toward
Understanding the
Motivational Effects
of Transformational
Leaders.” Academy of
Management Journal
46 (2003), pp. 554–71;
and Shin, S.J., and J.
Zhou. “Transforma-
tional Leadership,
Conservation, and
Creativity: Evidence
from Korea.” Acad-
emy of Management
Journal 46 (2003),
pp. 703–14.
14.118 Bono, J.E., and R.
Ilies. “Charisma,
Positive Emotions,
and Mood Conta-
gion.” Leadership
Quarterly 17 (2006),
pp. 317–34; and
McColl-Kennedy,
J.R., and R.D.
Anderson. “Impact
of Leadership Style
and Emotions on
Subordinate Perfor-
mance.” Leadership
Quarterly 13 (2002),
pp. 545–59.
14.119 Bono, J; H.J. Foldes;
G. Vinson; and J.P.
Muros. “Workplace
Emotions: The Role
of Supervision
and Leadership.”
Journal of Applied
Psychology 92
(2007), pp. 1357–67.
14.120 Kerr, S., and J.M.
Jermier. “Substitutes
for Leadership:
Their Meaning and
Measurement.” Orga-
nizational Behavior
and Human Perfor-
mance 22 (1978),
pp. 375–403.
14.121 Howell, J.P.; P.W.
Dorfman; and S.
Final PDF to printer
478 C H A P T E R 1 4 Leadership: Styles and Behaviors
coL27660_ch14_442-478.indd 478 10/17/17 11:41 AM
Kerr. “Moderator
Variables in Leader-
ship Research.” Acad-
emy of Management
Review 11 (1986),
pp. 88–102.
14.122 Kerr and Jer-
mier, “Substitutes
for Leadership”; and
Jermier, J.M., and S.
Kerr. “‘Substitutes
for Leadership:
Their Meaning and
Measurement’: Con-
textual Recollections
and Current Obser-
vations.” Leadership
Quarterly 8 (1997),
pp. 95–101.
14.123 Howell, J.P.; D.E.
Bowen; P.W. Dorf-
man; S. Kerr; and
P.M. Podsakoff.
“Substitutes for
Leadership: Effec-
tive Alternatives to
Ineffective Leader-
ship.” Organizational
Dynamics, Summer
1990, pp. 21–38.
14.124 Podsakoff, P.M., and
S.B. MacKenzie.
“Kerr and Jer-
mier’s Substitutes for
Leadership Model:
Background, Empiri-
cal Assessment,
and Suggestions for
Future Research.”
Leadership Quarterly
8 (1997), pp. 117–25;
Podsakoff, P.M.;
B.P. Niehoff; S.B.
MacKenzie; and
M.L. Williams. “Do
Substitutes for Lead-
ership Really Substi-
tute for Leadership?
An Empirical Exami-
nation of Kerr and
Jermier’s Situational
Leadership Model.”
Organizational
Behavior and Human
Decision Processes
54 (1993), pp. 1–44;
Podsakoff et al.,
“Transformational
Leadership Behav-
iors and Substitutes
for Leadership”; and
Podsakoff, P.M.;
S.B. MacKenzie; M.
Ahearne; and W.H.
Bommer. “Searching
for a Needle in a
Haystack: Trying to
Identify the Illusive
Moderators of Lead-
ership Behavior.”
Journal of Manage-
ment 21 (1995),
pp. 422–70.
14.125 Howell et al.,
“Substitutes for
Leadership: Effective
Alternatives.”
14.126 Ho, M. “2016 State
of the Industry
Report: Investment
in Learning Increases
for 4th Straight
Year.” TD: Talent
Development, Novem-
ber 2016, pp. 30–35.
14.127 Source: Kranz, G.
“A Higher Standards
for Managers.” Work-
force, June 11, 2007,
pp. 21–26.
14.128 Source: Kranz, G.
“Wal-Mart Drafts
Leaders for Military-
style Training.”
Workforce, June 12,
2013, http://www.
workforce.com/
article/20130612/
NEWS02/
130619994/0/topics.
14.129 Gist, M.E., and D.
McDonald-Mann.
“Advances in Leader-
ship Training and
Development.” In
Industrial and Orga-
nizational Psychology:
Linking Theory with
Practice, ed. C.L.
Cooper and E.A.
Locke. Malden, MA:
Blackwell, 2000, pp.
52–71.
14.130 Reardon, N. “Making
Leadership Personal.”
T + D, March 2011,
pp. 44–49.
14.131 Weinstein, M. “Farm-
er’s Comprehensive
Training Policy.”
Training, January/
February 2013,
pp. 42–44.
14.132 Ibid.; Dvir, T.;
D. Eden; B.J.
Avolio; and B.
Shamir. “Impact of
Transformational
Leadership on Fol-
lower Development
and Performance: A
Field Experiment.”
Academy of Manage-
ment Journal 45
(2000), pp. 735–44;
and Barling, J.; T.
Weber; and E.K.
Kelloway. “Effects
of Transformational
Leadership Training
on Attitudinal and
Financial Outcomes:
A Field Experiment.”
Journal of Applied
Psychology 81 (1996),
pp. 827–32.
14.133 Barling et al.,
“Effects of Transfor-
mational Leadership
Training.”
14.134 Marcic, D.; J.
Seltzer; and P. Vail,
Organizational Behav-
ior: Experiences and
Cases. Cincinnati,
OH: South-Western,
2001.
Final PDF to printer
coL27660_ch15_479-507.indd 479 10/17/17 11:43 AM
CHAPTER 15
Organizational Structure
CHAPTER 16
Organizational Culture
5
P A R T
ORGANIZATIONAL
MECHANISMS
Final PDF to printer
coL27660_ch15_479-507.indd 480 10/17/17 11:43 AM
15
LEARNING GOALS
15.1 What is an organization’s structure, and what does it consist of?
15.2 What are the major elements of an organizational structure?
15.3 What is organizational design, and what factors does the organizational design process depend on?
15.4 What are some of the more common organizational forms that an organization might adopt for its
structure?
15.5 When an organization makes changes to its structure, how does that restructuring affect job
performance and organizational commitment?
15.6 What steps can organizations take to reduce the negative effects of restructuring efforts?
After reading this chapter, you should be able to answer the following questions:
Organizational Structure
Ability
INDIVIDUAL
OUTCOMES
INDIVIDUAL
MECHANISMS
INDIVIDUAL
CHARACTERISTICS
ORGANIZATIONAL
MECHANISMS
Organizational
Culture
Organizational
Structure
Motivation
Trust, Justice,
& Ethics
Teams:
Characteristics &
Diversity Learning &
Decision Making
Stress
Job
Satisfaction
Leadership:
Styles &
Behaviors
Organizational
Commitment
Job
Performance
GROUP
MECHANISMS
Personality &
Cultural Values
Teams:
Processes &
Communication
Leadership:
Power &
Negotiation
Final PDF to printer
coL27660_ch15_479-507.indd 481 10/17/17 11:43 AM
W
hen you sit down with the next Apple product
you are using—whether that be your iPhone, your
iPad, your MacPro, or whatever else—it’s worth
taking the time to think about why Apple has been so suc-
cessful at creating products that seem to flow and work so
well. You might think, “They’ve had some great visionary
leaders like Steve Jobs and Tim Cook.” (They have.) You
might think, “Well, they’ve got some brilliant people work-
ing there.” (They do.) However, one of the big and some-
what hidden reasons for Apple’s success over the years has
been . . . wait for it . . . its organizational structure. Wait,
what? That’s right, how Apple organizes its work, reporting
relationships, and information flow have had a lot to do with
why they have been so successful.
So how does Apple do it? The company is organized
using a functional organizational structure. If you look at the
executives in Apple (SVP of Software Engineering, Chief
Design Officer, SVP of Hardware Engineering, SVP of Hard-
ware Technologies), employees are organized around their
expertise—what they bring to the table in terms of knowl-
edge or skill. What you don’t see are executives in charge
of specific products (iPhone VP, Mac Pro VP) or regions (VP
North America, VP Europe). When Steve Jobs came back
and took over Apple for the second time, the first thing he
did was reorganize the company back into a purely func-
tional structure. Apple believes that this structure allows
them to move more quickly, focus on collaboration above all
things, and have “best in class” employees.
One advantage of not organizing around a product is that
it makes it easier to get rid of products when they’ve out-
lived their usefulness (iPod, Airport routers, Apple monitors).
There simply isn’t anyone around worried about losing their
job when a product needs to go away. So why don’t more
companies take this approach? Simply put, it’s really hard
to hold on to a functional structure as a company grows in
size. That’s why a lot of Apple stakeholders and critics have
been trying to push Apple to change as they’ve gotten big-
ger because they believe Apple is leaving a lot of money on
the table. Apple CEO Tim Cook has fought back though say-
ing, “Apple is this unique company, unique culture that you
can’t replicate. And I’m not going to witness or permit the
slow undoing of it, because I believe in it so deeply.”
APPLE
©Bloomberg/Getty Images
Final PDF to printer
482 C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 482 10/17/17 11:43 AM
O R G A N I Z AT I O N A L S T R U C T U R E
As the Apple example illustrates, an organization’s structure can have a significant impact on
its financial performance and ability to manage its employees and products. The decisions that
CEO Tim Cook makes regarding the company’s organizational structure will have an impact on
how employees communicate and cooperate with one another, how power is distributed, and
how individuals view their work environment. In fact, an organization’s structure dictates more
than you might think. We’ve spent a great deal of time in this book talking about how employee
attitudes and behaviors are shaped by individual characteristics, such as personality and ability,
and group mechanisms, such as teams and leaders. In this and the following chapter, we discuss
how the organization as a whole affects employee attitudes and behavior. Match.com (the online
dating service) CEO Sam Yagan was asked to describe one of the biggest lessons he had recently
learned, and he replied, “The impact of organizational structure on a company’s ability to get,
create, innovate, evolve, or just plain survive. Everyone knows that hiring, engaging, and retaining
talent is a huge competitive issue, but I don’t think enough executives of companies big and small
realize the impact the way they organize their talent has on the company’s overall productivity.”1
Think about some of the jobs you’ve held in the past (or perhaps the job you hope to have after
graduation). What types of employees did you interact with on a daily basis? Were they employees
who performed the same tasks that you performed? Or maybe they didn’t do exactly what you did,
but did they serve the same customer? How many employees did your manager supervise? Was every
decision you made scrutinized by your supervisor, or were you given a “long leash”? The answers
to all of these questions are influenced by organizational structure. An organizational structure for-
mally dictates how jobs and tasks are divided and coordinated between individuals and groups within
the company. Organizational structures can be relatively simple when a company has only 5 to 20
employees but grow incredibly complex when an organization has tens of thousands of employees.
W H Y D O S O M E O R G A N I Z AT I O N S H AV E D I F F E R E N T
S T R U C T U R E S T H A N OT H E R S ?
One way of getting a feel for an organization’s structure is by looking at an organizational chart.
An organizational chart is a drawing that represents every job in the organization and the formal
reporting relationships between those jobs. It helps organizational members and outsiders under-
stand and comprehend how work is structured within the company. Figure 15-1 illustrates two
15.1
What is an organization’s
structure, and what does it
consist of?
FIGURE 15-1 Two Sample Organizational Structures
Final PDF to printer
483C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 483 10/17/17 11:43 AM
sample organizational charts. In a real chart, the boxes would be filled with actual names and
job titles. As you can imagine, as companies grow larger, their organizational charts get more
complex. Can you imagine drawing an organizational chart that included every one of Walmart’s
2.2 million employees? Not only would that require a lot of boxes and a lot of paper, it would prob-
ably take a couple of years to put together (plus, as soon as someone left the organization, it would
be time to update the chart!).
E L E M E N TS O F O R GA N I Z AT I O N A L ST R U C T U R E
The organizational charts described in this chapter are relatively simple and designed to illustrate
specific points (if you want to see how complex some of these charts can get, do a search on the
Internet for “organizational chart,” and you’ll begin to see how varied organizations can be in the
way they design their company). Specifically, charts like those in Figure 15-1 can illustrate the five
key elements of an organization’s structure. Those five key elements, summarized in Table 15-1,
describe how work tasks, authority relationships, and decision-making responsibilities are orga-
nized within the company. These elements will be discussed in the next several sections.
WORK SPECIALIZATION Work specialization is the way in which tasks in an organization are
divided into separate jobs. In some organizations, this categorization is referred to as a company’s
division of labor. How many tasks does any one employee perform? To some degree, work spe-
cialization is a never-ending trade-off among productivity, flexibility, and worker motivation. Take
an assembly-line worker at Ford as an example. Henry Ford was perhaps the earliest (and clearly
most well-known) believer in high degrees of work specialization. He divided tasks among his
manufacturing employees to such a degree that each employee might perform only a single task,
over and over again, all day long. Having only one task to perform allowed those employees to be
extremely productive at doing that one thing. It also meant that training new workers was much
easier when replacements were needed.
However, there are trade-offs when organizations make jobs highly specialized. Highly special-
ized jobs can cause organizations to lose the ability associated with employees who can be flexible
in what they do. By spending all their time performing specialized tasks well, employees fail to
update or practice other skills. Accounting majors, for example, might specialize in taxes or audit-
ing. Some larger companies might hire these graduates for their ability to do either auditing or
tax—but not both. Other companies might be looking for an accountant who can perform either
aspect well, depending on how they divide up accounting duties within their organization. Still
other companies might want to hire “general managers” who understand accounting, finance,
management, marketing, and operations as a part of their job. Thus, high levels of specialization
15.2
What are the major elements
of an organizational
structure?
TABLE 15-1 Elements of Organizational Structure
ORGANIZATIONAL
STRUCTURE DIMENSION DEFINITION
Work specialization The degree to which tasks in an organization are divided into
separate jobs.
Chain of command Answers the question of “who reports to whom?” and signifies
formal authority relationships.
Span of control Represents how many employees each manager in the organiza-
tion has responsibility for.
Centralization Refers to where decisions are formally made in organizations.
Formalization The degree to which rules and procedures are used to standard-
ize behaviors and decisions in an organization.
Final PDF to printer
484 C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 484 10/17/17 11:43 AM
may be acceptable in larger firms with more employees but can be problematic in smaller firms
in which employees must be more flexible in their job duties. Aetna, the Hartford, Connecticut–
based health insurer, publishes more than 1,300 different job titles, each of which has its own list
of the competencies that employees in those jobs must perform.2
Organizations may also struggle with employee job satisfaction when they make jobs highly
specialized. If you recall from Chapter 4 on job satisfaction, we discussed five core characteristics
of jobs that significantly affect satisfaction. One of those characteristics was variety, or the degree
to which the job requires a number of different activities involving a number of different skills and
talents.3 Employees tend to be more satisfied with jobs that require them to perform a number of
different kinds of activities. Even though you might be very efficient and productive performing
a job with only one task, how happy would you be to perform that job on a daily basis? One of
the most famous films in early motion picture history was Modern Times, a film in which Charlie
Chaplin was relegated to performing the same task over and over, very quickly. The movie ridi-
culed work specialization and the trend of treating employees as machines.
CHAIN OF COMMAND The chain of command within an organization essentially answers the
question “Who reports to whom?” Every employee in a traditional organizational structure has
one person to whom they report. That person then reports to someone else, and on and on,
until the buck stops with the CEO (though in a public company, even the CEO is responsible
to the board of directors). The chain of command can be seen as the specific flow of author-
ity down through the levels of an organization’s structure. There are some companies such as
Washington–based video-game maker Valve Corporation whose 300 employees work with no
managers or assigned projects. (Valve’s website lets you know the company has been “boss free”
since its founding in 1996.4) However, these types of organizations are the exception and not the
norm. Most organizations depend on a chain of command’s flow of authority to attain order, con-
trol, and predictable performance.5 Some newer organizational structures make this chain of com-
mand a bit more complex. It has become common to have positions that report to two or more
different managers. A newer trend for a number of companies, such as Oracle, is to have co-CEOs.
However, Whole Foods and Chipotle have recently dropped their co-CEO structures primarily to
streamline decision making. Chipotle CEO Steve Ells stated that, “a single, focused message to
our teams and a focus on just the things that have made us successful is what we need now.”6 For
one example of how chain of command can greatly affect operations within an organization see
this chapter’s OB on Screen.
SPAN OF CONTROL A manager’s span of control represents how many employees he or she is
responsible for in the organization. The organizational charts in Figure 15-1 provide an illustra-
tion of the differences in span of control. In the top chart, each manager is responsible for leading
two subordinates. In most instances, this level would be considered a narrow span of control. In
the bottom chart, the manager is responsible for 10 employees. Typically, this number would be
considered a wide span of control. Of course, the key question in many organizations is how many
employees one manager can supervise effectively. Answering that question requires a better under-
standing of the benefits of narrow
and wide spans of control.
Narrow spans of control allow
managers to be much more hands-
on with employees, giving them
the opportunity to use directive
leadership styles while develop-
ing close mentoring relationships
with employees. A narrow span
of control is especially important
if the manager has substantially
more skill or expertise than the
subordinates. Early writings on
management assumed that the
narrower the span of control, the
Modern Times (1932),
starring Charlie Chaplin,
ridiculed work specializa-
tion and the treating of
employees as machines.
Have things changed
since then?
©AF archive/Alamy
Final PDF to printer
485C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 485 10/17/17 11:43 AM
OB ON SCREEN
THE IMITATION GAME
Who is your commanding officer?
With those words Alan Turing (Benedict Cumberbatch) questions Commander Alastair Denniston
(Charles Dance) to try to figure out how he can get around the chain of command in The Imita-
tion Game (Dir: Morten Tyldum, Weinstein Company, 2014). Turing, a mathematical genius and an
expert in cryptology (the study of codes and codebreaking), is hired by Denniston to join the British
military during World War II. A group of cryptologists are brought in to try to break the code created
by the “Enigma Machine,” which is allowing the Nazis to send secure wireless messages both to their
submarines and military in the field. The most complicated part of solving the codes the machine
writes and reads is that the code is reset every single day, which doesn’t leave enough time to solve the
problem before having to start over. At the time of the movie, things are not going well for the Allied
countries and the Nazis’ unfettered use of the Enigma machine is allowing them to win the war.
Turing, who thinks most of those working around him are dimwits, wants to build a machine
of his own creation that will break the code—“only a machine can defeat another machine.” The
problem? Turing’s machine is going to cost 100,000 pounds, and he hasn’t convinced the others to
believe in its potential worth. Hugh Alexander (Matthew Goode) is Turing’s direct supervisor for
the code breaking group and has said no to his ideas. Turing attempts to go around him to Dennis-
ton, who resoundly orders that he needs to follow the centralized decision-making structure set up
within the military structure. Denniston argues that wars are won with “order, discipline, chain of
command.” When Turing asks who Denniston’s superior officer is, Denniston incredulously tells
him, “Winston Churchill, #10 Downing Street, London, England SW1. If you have a problem with
my decision, you may take it up with him.” Turing, unfazed by this and somewhat oblivious to how
things are supposed to work in an organizational setting, simply writes Churchill a letter directly
to try to get the resources and decision-making capability that he needs to get his machine built.
©The Weinstein Company/Photofest
more productive employees would become.7 However, a narrow span of control requires organiza-
tions to hire many managers, which can significantly increase labor costs. Moreover, if the span
of control becomes too narrow, employees can become resentful of their close supervision and
long for more latitude in their day-to-day decision making. In fact, current research suggests that a
moderate span of control is best for an organization’s productivity.8 This relationship is illustrated
Final PDF to printer
486 C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 486 10/17/17 11:43 AM
in Figure 15-2. Note that organizational performance increases as span of control increases, but
only up to the point that managers no longer have the ability to coordinate and supervise the large
numbers of employees underneath them. Most organizations work hard to try to find the right
balance, and this balance differs for every organization, depending on its unique circumstances.
However, there is no question that spans of control in organizations have increased significantly
in recent years.9 Although extremely rare, organizations such as Coca-Cola have gone through
structures in which vice presidents have had up to 90 employees reporting to them!10
An organization’s span of control affects how “tall” or “flat” its organizational chart becomes.
For example, the top panel of Figure 15-1 depicts a tall structure with many hierarchical levels and
a narrow span of control, whereas the bottom panel depicts a flat organization with few levels and
a wide span of control. Think about what happens when an organization becomes “taller.” First,
more layers of management mean having to pay more management salaries. Second, communi-
cation in the organization becomes more complex as each new layer becomes one more point
through which information must pass when traveling upward or downward. Third, the organiza-
tion’s ability to make decisions becomes slower, because approval for decisions has to be autho-
rized at every step of the hierarchy.
Over the past three decades, organizations worked to become flatter to reduce the costs associ-
ated with multiple layers of management and increase their ability to adapt to their environment.
When Intel, for example, announced a reduction in its managerial ranks of 1,000 positions (or
1 percent of its 100,000 employees), a spokesperson announced that “This [layoff] is designed
to improve costs and improve decision making and communications across the company.”11
McDonald’s recently reorganized in a way that is supposed to make their decision making faster
and more focused on their customers. CEO Steve Easterbrook added, “Our new structure will be
supported by streamlined teams with fewer layers and less bureaucracy.”12
CENTRALIZATION Centralization reflects where decisions are formally made in organizations. If
only the top managers within a company have the authority to make final decisions, we would say
that the organization has a highly “centralized” structure. In contrast, if decision-making authority
is pushed down to lower-level employees and these employees feel empowered to make decisions
FIGURE 15-2 Span of Control and Organizational Performance
High
Performance
Low
Performance
Narrow
Span of Control
Wide
Span of Control
Source: Adapted from N.A. Theobald and S. Nicholson-Crotty, “The Many Faces of Span of Control: Organizational
Structure Across Multiple Goals,” Administration and Society 36 (2005), pp. 648–60.
Final PDF to printer
487C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 487 10/17/17 11:43 AM
on their own, an organization has a “decentralized” structure. Decentralization becomes neces-
sary as a company grows larger. Sooner or later, the top management of an organization will not
be able to make every single decision within the company. Centralized organizational structures
tend to concentrate power and authority within a relatively tight group of individuals in the firm,
because they’re the ones who have formal authority over important decisions.
Many organizations are moving toward a more decentralized structure. A manager can’t have
20 employees reporting to him or her if those employees aren’t allowed to make some decisions on
their own. Airbus, the French manufacturer of airplanes, is doing its best to decentralize decision
making within the company. CEO Fabrice Brégier believes it’s taking the company way too long
to make decisions. “We make some of the world’s most complex products, but that doesn’t mean
we have to be overly complex about how we do things.” His goal is to give Airbus’s production
managers more independence to set priorities and move more quickly. Brégier states, “We need to
funnel this down to just the people required to make decisions.”13 Greg Page, Executive Chairman
of Cargill, a $100 billion conglomerate with 70 separate business units, says the company’s senior
governing body has only six people on purpose. He states, “By keeping the [leadership team] too
small to conduct the day-to-day affairs of the company, it forces that accountability and ownership
down the line. The role of the [team] is to put our noses in and keep our fingers out.”14
However, it’s also important to realize that some organizations might choose to hold on to cen-
tralized control regardless of how big they get. Pennsylvania–headquartered Sheetz convenience
stores are one of the fastest-growing store operators in the country, with 440 outlets and annual rev-
enues of $7 billion. Still run as a family business, the Sheetz family likes to maintain a high degree
of control over what happens. While most companies decentralize as they get bigger for the sake of
sanity, the Sheetz family has not ceded much control to those outside the family. Soon-to-be-CEO
Joe Sheetz believes having the family retain decision-making rights is a big part of the company’s
success, saying, “We don’t play well with others.”15 Have the organizations where you’ve worked
been largely centralized or decentralized? See our OB Assessments feature to find out.
FORMALIZATION A company is high in formalization when there are many specific rules and
procedures used to standardize behaviors and decisions. Although not something you can necessar-
ily see on an organizational chart, the impact of formalization is felt throughout the organization.
Rules and procedures are a necessary mechanism for control in every organization. Although the
word formalization has a somewhat negative connotation, think about the reactions if McDonald’s
made its most popular menu items in different ways at each location. Or think about this: Would it
bother you if every time you called Dell for technical support, you got an operator who treated you
differently and gave you conflicting answers? Formalization is a necessary coordination mechanism
that organizations rely on to get a standardized product or deliver a standardized service.
Alcoa’s Michigan Casting Center, a leading automotive part supplier, was plagued by the fact
that it could have two machine operators running the same machine on two different shifts and
get up to a 50 percent performance difference in output and quality between the workers. The
company conducted a study to identify the best practices for each machine in its plant. These best
practices became standard operating procedures for each worker, and that formalization allowed
the company to get a more predictable level of output.16 Companies such as W.L. Gore, the New-
ark, Delaware–based manufacturer of Gore-Tex, fall at the other extreme when it comes to formal-
ization.17 Whereas most companies have titles for their jobs and job descriptions that specify the
tasks each job is responsible for, Bill Gore (company founder) felt that such formalization would
stifle communication and creativity. After one of his employees mentioned that she needed to
put some kind of job title on a business card to hand out at an outside conference, Gore replied
that she could put “supreme commander” on the card for all he cared. She liked the title so much
that she followed through on his suggestion, and it became a running joke throughout the com-
pany.18 Recent research supports Gore’s view. A manager might try to make employees feel more
empowered by decentralizing decision making, but evidence suggests this effect is negated when
the employees’ job roles have a high level of formalization.19
ELEMENTS IN COMBINATION You might have noticed that some elements of an organiza-
tion’s structure seem to go hand-in-hand with other elements. For example, wide spans of control
tend to be associated with decentralization in decision making. A high level of work specialization
Final PDF to printer
488 C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 488 10/17/17 11:43 AM
OB ASSESSMENTS
SCORING AND INTERPRETATION:
Hierarchy of Authority: Sum up items 1–5. _______
Participation in Decision Making: Sum up items 6–9. _______
A centralized structure would be one in which Hierarchy of Authority is high and Participation
in Decision Making is low. If your score is above 20 for Hierarchy of Authority and below 8 for
Participation in Decision Making, your organization (or student group) has a highly centralized
structure.
Source: Adapted from M. Schminke, R. Cropanzano, and D.E. Rupp, “Organization Structure and Fairness Perceptions: The
Moderating Effects of Organizational Level,” Organizational Behavior and Human Decision Processes 89 (2002), pp. 881–905.
CENTRALIZATION
Have you experienced life inside an organization with a highly centralized structure? This assess-
ment is designed to measure two facets of what would be considered a centralized organizational
structure. Those two facets are hierarchy of authority, which reflects the degree to which managers
are needed to approve decisions, and participation in decision making, which reflects how involved
rank-and-file employees are in day-to-day deliberations. Think about the last job you held (even if
it was a part-time or summer job). Alternatively, think about a student group of yours that seems
to have a definite “leader.” Then answer each question using the response scale provided. (Instruc-
tors: Assessments on structure preferences and formalization can be found in the PowerPoints
in the Connect Library’s Instructor Resources and in the Connect assignments for this chapter.)
1
STRONGLY
DISAGREE
2
DISAGREE
3
UNCERTAIN
4
AGREE
5
STRONGLY
AGREE
1. There can be little action here until a supervisor approves a decision. ________
2. A person who wants to make his or her own decisions would be quickly
discouraged.
________
3. Even small matters have to be referred to someone higher up for a final
answer.
________
4. I have to ask my boss before I do almost anything. ________
5. Any decision I make has to have my boss’s approval. ________
6. I participate frequently in the decision to adopt new programs. ________
7. I participate frequently in the decision to adopt new policies and rules. ________
8. I usually participate in the decision to hire or adopt new group members. ________
9. I often participate in decisions that affect my working environment. ________
tends to bring about a high level of formalization. Moreover, if you take a closer look at the ele-
ments, you might notice that many of the elements capture the struggle between efficiency and
flexibility. Mechanistic organizations are efficient, rigid, predictable, and standardized organiza-
tions that thrive in stable environments. Mechanistic organizations are typified by a structure that
relies on high levels of formalization, a rigid and hierarchical chain of command, high degrees of
Final PDF to printer
489C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 489 10/17/17 11:43 AM
work specialization, centralization of decision making, and narrow spans of control. In contrast,
organic organizations are flexible, adaptive, outward-focused organizations that thrive in dynamic
environments. Organic organizations are typified by a structure that relies on low levels of formal-
ization, weak or multiple chains of command, low levels of work specialization, and wide spans of
control. Table 15-2 sums up the differences between the two types of organizations.
If you think about the differences between the two types, it probably wouldn’t be too difficult
to come up with a few companies that fall more toward one end of the continuum or the other.
Where would you place Apple? Evidence indicates that a mechanistic or organic culture can have a
significant effect on the types of employee practices a company adopts, such as selection, training,
recruitment, compensation, and performance systems.20 In addition, organic structures are more
likely to allow for transformational leadership to have a positive effect on employees.21 However,
it’s important to remember that few organizations are perfect examples of either extreme. Most
fall somewhere near the middle, with certain areas within the organization having mechanistic
qualities and others being more organic in nature. Microsoft is a good example as an organization
that has many organic qualities, but even within its own walls it had teams that worked completely
apart from each other while developing a major software platform and when they came together,
what each group had done was incompatible with the other—a mistake they tried to rectify during
the creation of later versions of Windows.22 Although it’s tempting to label mechanistic as “bad”
and organic as “good,” this perception is not necessarily true. Being mechanistic is the only way
for many organizations to survive, and it can be a highly appropriate and fruitful way to structure
work functions. To find out why that’s the case, we need to explore why organizations develop the
kinds of structures they do.
O R GA N I Z AT I O N A L D E S I G N
Organizational design is the process of creating, selecting, or changing the structure of an orga-
nization. Ideally, organizations don’t just “let” a structure develop on its own; they proactively
design it to match their specific circumstances and needs. Research indeed shows this is how it
works in most cases.23 However, some organizations aren’t that proactive and find themselves with
a structure that has unintentionally developed on its own, without any careful planning. Those
15.3
What is organizational
design, and what factors
does the organizational
design process depend on?
TABLE 15-2 Characteristics of Mechanistic vs. Organic Structures
MECHANISTIC ORGANIZATIONS ORGANIC ORGANIZATIONS
High degree of work specialization; employ-
ees are given a very narrow view of the tasks
they are to perform.
Low degree of work specialization; employ-
ees are encouraged to take a broad view of
the tasks they are to perform.
Very clear lines of authority; employees know
exactly whom they report to.
Although there might be a specified chain of
command, employees think more broadly in
terms of where their responsibilities lie.
High levels of hierarchical control; employees
are not encouraged to make decisions with-
out their manager’s consent.
Knowledge and expertise are decentralized;
employees are encouraged to make their
own decisions when appropriate.
Information is passed through vertical com-
munication between an employee and his or
her supervisor.
Lateral communication is encouraged, focus-
ing on information and advice as opposed to
orders.
Employees are encouraged to develop firm-
specific knowledge and expertise within their
area of specialization.
Employees are encouraged to develop
knowledge and expertise outside of their
specialization.
Source: Adapted from T. Burns and G.M. Stalker, The Management of Innovation (London: Tavistock, 1961).
Final PDF to printer
490 C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 490 10/17/17 11:43 AM
organizations may then be
forced to change their struc-
ture to become more effective.
A number of factors should
influence the process of orga-
nizational design. Those fac-
tors include the environment
in which the organization does
business, its corporate strategy
and technology, and the size
of the firm. However, for some
firms in dire straits, changing
the structure becomes a strat-
egy in and of itself, often lead-
ing to very poor results.24
BUSINESS ENVIRONMENT An organization’s business environment consists of its customers,
competitors, suppliers, distributors, and other factors external to the firm, all of which have an
impact on organizational design. One of the biggest factors in an environment’s effect on struc-
ture is whether the outside environment is stable or dynamic. Stable environments don’t change
frequently, and any changes that do occur happen very slowly. Stable environments allow orga-
nizations to focus on efficiency and require little change over time. In contrast, dynamic envi-
ronments change on a frequent basis and require organizations to have structures that are more
adaptive.25 In a classic example, Sony made a well-publicized corporate mistake when it failed to
meet the needs of its changing business environment to match Apple’s iPod.26 Because it took it
so long to recognize and adapt to this environmental shift, Sony struggled to be profitable for a
long time. More recently, Sony has come under fire again for its organizational structure when
it failed to learn from a major computer hacking scandal in 2011 and fell victim to a similar, but
more serious attack in 2014 because its units didn’t communicate with one another.27 Some would
argue that the world is changing so fast that the majority of companies can no longer keep up.
COMPANY STRATEGY A company strategy describes an organization’s objectives and goals
and how it tries to capitalize on its assets to make money. Although the myriad of organizational
strategies is too involved to discuss here, two common strategies revolve around being either a low-
cost producer or a differentiator.28 Companies that focus on a low-cost producer strategy rely on
selling products at the lowest possible cost. To do this well, they have to focus on being as efficient
as they can be. Such companies are more likely to take a mechanistic approach to organizational
design. Other companies might follow a differentiation strategy. Rather than focusing on supply-
ing a product or service at the lowest cost, these companies believe that people will pay more for
a product that’s unique in some way. It could be that their product has a higher level of quality or
offers features that a low-cost product doesn’t. A differentiation strategy often hinges on adjusting
to changing environments quickly, which often makes an organic structure more appropriate.
TECHNOLOGY An organization’s technology is the method by which it transforms inputs into
outputs. Very early on in the study of organizations, it was assumed that technology was the major
determinant of an organization’s structure.29 Since then, the picture has become less clear regard-
ing the appropriate relationship between technology and structure.30 Although not completely
conclusive, research suggests that the more routine a technology is, the more mechanistic a struc-
ture should be. In many ways, this suggestion makes perfect sense: If a company makes the exact
same thing over and over, it should focus on creating that one thing as efficiently as possible by
having high levels of specialization, formalization, and centralization. However, if technologies
need to be changed or altered to suit the needs of various consumers, it follows that decisions
would be more decentralized and the rules and procedures the organization relies on would need
to be more flexible.
COMPANY SIZE There is no question that there is a significant relationship between company
size, or the total number of employees, and structure.31 As organizations become larger, they need
Partially due to its orga-
nizational structure, Sony
was unable to adjust to its
changing business envi-
ronment, allowing Apple
to dominate the portable
music player market with
its innovative line of iPods.
©Roman Tiraspolsky/Shutterstock
Final PDF to printer
491C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 491 10/17/17 11:43 AM
to rely on some combination of specialization, formalization, and centralization to control their
activities, thereby becoming more mechanistic in nature. When it comes to organizational per-
formance, however, there is no definite answer as to when an organization’s structure should be
revised, or “how big is too big.”32 As many organizations get bigger, they attempt to create smaller
units within the firm to create a “feeling of smallness.” W.L. Gore did just that by attempting to
prevent any one location in the company from having more than 150 employees. Top manage-
ment was convinced that a size of 150 would still allow all the employees to talk to one another in
the hallways.33 Matching this philosophy and subsequent to Gore, Robin Dunbar, an evolutionary
psychologist, published research showing that individuals can only maintain personalized relation-
ships with 150 people.34 Even companies such as Facebook and Netflix are very aware of what has
become known as “Dunbar’s Number” of 150. Facebook Chief Product Officer Chris Cox says,
“It’s one of the magic numbers in group sizes. I’ve talked to so many startup CEOs that after they
pass this number, weird stuff starts to happen. The weird stuff means the company needs more
structure for communications and decision-making.”35 Even if they can’t technically create smaller
groups due to their overwhelming size, some companies such as PepsiCo and Mondelez Interna-
tional snack food company (110,000 employees) are going so far as to send their employees to
spend time in some technology and media start-up firms so that they can come back with a sense of
“smallness” that they hope will create an entrepreneurial spirit within their larger organizations.36
C O M M O N O R GA N I Z AT I O N A L F O R M S
Our discussion of organizational design described how an organization’s business environment,
strategy, technology, and size conspire to make some organizational structures more effective than
others. Now we turn our attention to a logical next question: What structures do most organiza-
tions utilize? The sections that follow describe some of the most common organizational forms.
As you read their descriptions, think about whether these forms would fall on the mechanistic or
organic side of the structure continuum. You might also consider what kinds of design factors
would lead an organization to choose that particular form.
SIMPLE STRUCTURES Simple structures are perhaps the most common form of organizational
design, primarily because there are more small organizations than large ones. In fact, more than
80 percent of employing organizations have fewer than 19 employees.37 Small accounting and law
firms, family-owned grocery stores, individual-owned retail outlets, independent churches, and
landscaping services are all organizations that are likely to use a simple structure. Figure 15-3
shows a simple structure for a manager-owned restaurant. The figure reveals that simple struc-
tures are just that: simple. Simple structures are generally used by extremely small organizations
in which the manager, president, and owner are all the same person. A simple structure is a flat
organization with one person as the central decision-making figure; it is not large enough to have
a high degree of formalization and will have only very basic differences in work specialization.
A simple structure makes perfect sense for a small organization, because employees can come
and go with no major ripple effects on the organization. However, as the business grows, the
coordinating efforts on the part of the owner/manager become increasingly more complex. In the
case of our restaurant, let’s assume that the growth of the restaurant requires the owner to spend
time doing lots of little things to manage the employees. Now the manager has lost the ability to
spend time focusing on the actual business at hand. The manager then decides to add a supervisor
to handle all of the day-to-day organizing of the restaurant. This arrangement works well until the
owner decides to open a second restaurant that needs to have its own supervisor. Now let’s assume
that this second restaurant is much larger, leading the owner to decide to have separate supervi-
sors directly in charge of the waitstaff and the kitchen. All of a sudden, our little restaurant has
three layers of management!
BUREAUCRATIC STRUCTURES When you think of the word “bureaucracy,” what thoughts
come to mind? Stuffy, boring, restrictive, formal, hard to change, and needlessly complex are
some of the terms that have a tendency to be associated with bureaucracies. Those unflattering
adjectives aside, chances are very good that you either currently work in a bureaucracy or will after
you graduate. A bureaucratic structure is an organizational form that exhibits many of the facets
15.4
What are some of the more
common organizational
forms that an organiza-
tion might adopt for its
structure?
Final PDF to printer
492 C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 492 10/17/17 11:43 AM
of the mechanistic organization. Bureaucracies are designed for efficiency and rely on high levels
of work specialization, formalization, centralization of authority, rigid and well-defined chains of
command, and relatively narrow spans of control. As mentioned previously, as an organization’s
size increases, it’s incredibly difficult not to develop some form of bureaucracy.
There are numerous types of bureaucratic structures on which we might focus. The most basic
of these is the functional structure. As shown in Figure 15-4, a functional structure groups employ-
ees by the functions they perform for the organization. For example, employees with marketing
expertise are grouped together, those with finance duties are grouped together, and so on. The
success of the functional structure is based on the efficiency advantages that come with having a
high degree of work specialization that’s centrally coordinated.38 Managers have expertise in an
area and interact with others with the same type of expertise to create the most efficient solutions
for the company. As illustrated in our previous example of the fast-growing restaurant, many small
companies naturally evolve into functionally based structures as they grow larger.
However, small companies experiencing rapid growth are not the only organizations to benefit
from a functional structure. Macy’s, the New York–based clothes store, has a more traditional
functional structure. The 150-year-old retailer used to be organized around geographic regions,
but has restructured to be more functionally based with buying, planning, and marketing now all
operating out of one location in New York. Macy’s hopes that the efficiencies generated by the
change in structure will afford it enough cost savings to get a jump on its competitors like JCPen-
ney and Kohl’s. Indeed, Macy’s believes the changes have saved the company $500 million over
two years.39
Functional structures are extremely efficient when the organization as a whole has a relatively
narrow focus, fewer product lines or services, and a stable environment. The biggest weaknesses
of a functional structure tend to revolve around the fact that individuals within each function get
so wrapped up in their own goals and viewpoints that they lose sight of the bigger organizational
picture. In other words, employees don’t communicate as well across functions as they do within
functions. The Sony example also highlights this danger, in that hardware engineers failed to
communicate with software developers, which prevented the hardware and software people from
seeing all the pieces of the puzzle.40 Even in the example directly above, Macy’s then-CEO Terry
Lundgren worried about the company’s ability to cater to local tastes with a functional structure.
To deal with this, he assigned specific managers in each region to be aware of and responsible for
unique local needs.41
In contrast to functional structures, multi-divisional structures are bureaucratic organizational
forms in which employees are grouped into divisions around products, geographic regions, or
clients (see Figure 15-4). Each of these divisions operates relatively autonomously from the others
and has its own functional groups. Multi-divisional structures generally develop from companies
with functional structures whose interests and goals become too diverse for that structure to han-
dle. For example, if a company with a functional structure begins to add customers that require
localized versions of its product, the company might adopt a geographic structure to handle the
FIGURE 15-3 An Organizational Structure for a Small Restaurant
Owner/
Manager
Employee 2
Waitsta�
Employee 1
Waitsta�
Employee 4
Cook
Employee 5
Cook
Employee 3
Busboy/
Dishwasher
Final PDF to printer
493C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 493 10/17/17 11:43 AM
FIGURE 15-4 Functional and Multi-Divisional Structures
Functional Structure
Geographic Structure
Product Structure
CEO/
President
Vice President
Government
Contracts
Vice President
Large Company
Contracts
Vice President
Direct
Consumer Sales
Vice President
Internet Sales
Client-based Structure
Vice President
Marketing
Vice President
Information
Technology
CEO/
President
Vice President
Human
Resources
Vice President
Finance
Vice President
Manufacturing
Vice President
Educational
Toys
Vice President
Electronic
Gaming
CEO/
President
Vice President
Infant Toys
Vice President
Girl’s Toys
Vice President
Boy’s Toys
CEO/
President
Vice President
North America
Vice President
Australia
Vice President
Middle East
Vice President
Europe
Vice President
Asia
product variations. Which form a company chooses will likely depend on where the diversity in
its business lies.
Product structures group business units around different products that the company produces.
Each of those divisions becomes responsible for manufacturing, marketing, and doing research
and development for the products in its own division. Boeing, Procter & Gamble, Hewlett-Packard,
and Sony are companies that have developed product structures. Product structures make sense
Final PDF to printer
494 C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 494 10/17/17 11:43 AM
when firms diversify to the point that the products they sell are so different that managing them
becomes overwhelming. Campbell Soup Company recently organized into a product-based struc-
ture that it expects to allow it to expand into faster-growing spaces. Campbell will now be orga-
nized into “Americas Simple Meals and Beverages,” “Global Biscuits and Snacks,” and “Packaged
Fresh” divisions. President and CEO Denise Morrison expects the new structure to generate an
extra $200 million over the next three years through the efficiencies the company will gain.42
Toyota Motor Corp. has announced that it will reorganize into seven units focusing on prod-
uct classes (such as compact cars, midsize vehicles, commercial vehicles, and the luxury Lexus
brand). Spokesman Ryo Sakai says, “By breaking the company down to a smaller framework than
before, each one can decide more quickly how to respond to changes.”43
However, there are downsides to a product structure. One of those downsides arises when the
divisions don’t communicate and they don’t have the ability to learn from one another. Facebook
uses multiple methods to try to overcome the barriers that size and organizational structure cre-
ate such as strict onboarding processes, mentoring, and other methods designed to make people
interact and not build up walls even though they are organized into different groups. One senior
manager went as far as to say, “We want to be the anti-Sony, the anti-Microsoft—we look at compa-
nies like that and see what we don’t want to become.”44 Not all companies want their divisions to
share though—they want them to compete. Even though it has changed since then, when he first
started as Fiat-Chrysler CEO, Sergio Marchionne reorganized so that Dodge, Jeep, and Chrysler
were essentially operating as separate companies, each with its own CEO. These companies were
being forced to compete with each other for marketing and development resources. Marchionne
believed that the competition would help to turn all three car brands around.45 See this chapter’s
OB at the Bookstore to read about some of the dangers of adopting a multi-divisional structure.
Geographic structures are generally based around the different locations where the company
does business. The functions required to serve a business are placed under a manager who is in
charge of a specific location. Reasons for developing a geographic structure revolve around the
different tastes of customers in different regions, the size of the locations that need to be covered
by different salespeople, or the fact that the manufacturing and distribution of a product are bet-
ter served by a geographic breakdown. When the Regus Group (a UK company) and HQ Global
Workplaces (a U.S. company) merged, they came together to form the world’s largest supplier
of meeting spaces and office suites. The new Regus Group now has more than 3,000 office suite
facilities in 900 cities across 120 countries. When they merged, HQ and Regus had different struc-
tures. Considering the necessarily geographic-based business (i.e., the distances between facilities
and the range of customers), the new Regus Group is structured by geographic region.46 Many
global companies are also organized by geographic location. IBM was one of the first, but that has
changed for them, as described in our OB Internationally feature.
One last form of multi-divisional structure is the client structure. When organizations have a num-
ber of very large customers or groups of customers that all act in a similar way, they might organize
their businesses around serving
those customers. For example,
small banks traditionally orga-
nize themselves into divisions
such as personal banking, small
business banking, personal
lending, and commercial lend-
ing. Similarly, consulting firms
often organize themselves into
divisions that are responsible
for small business clients, large
business clients, and federal
clients. Goldman Sachs is no
different, organizing around
investment banking, securities,
merchant banking, realty man-
agement, and other services.47
Facebook uses multiple
methods to try to over-
come the barriers that an
organizational structure
can create between
employees.
©Bloomberg/Getty Images
Final PDF to printer
495C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 495 10/17/17 11:43 AM
OB AT THE BOOKSTORE
THE SILO EFFECT
by Gillian Tett (New York: Simon & Schuster, 2015)
Indeed, almost everywhere I looked in the financial crisis it seemed that tunnel vision and tribal-
ism had contributed to the disaster. People were trapped inside their little specialist departments,
social groups, teams, or pockets of knowledge. Or, it might be said, inside their silos.
With those words, Gillian Tett describes part of the reason for
the 2008 U.S. financial crisis and the impetus for the book. Tett
comes from a unique vantage point. She is the U.S. managing
editor for the Financial Times and has been writing about finance
and economics for over 20 years. In addition, though, Tett has a
Ph.D. in social (cultural) anthropology. She effectively uses these
two viewpoints to write a book on how organizational structure
(and culture) can impact how we see and view the world around
us in a business environment. The book sets out to answer two
broad questions: (1) Why do silos arise? and (2) Is there any-
thing we can do to master our silos, before the silos master us?
Tett uses examples from a wide variety of organizations such as
New York’s City Hall, the Bank of England, Facebook, Sony, the
Chicago Police Department, and the Cleveland Clinic hospital
to describe how groupings can frame our thoughts. Some of
these are examples of how organizations have used structures (or
restructuring) to solve problems and become more effective (the
Cleveland Clinic and Facebook) and others are examples of what
happens when organizational structures wreak havoc by limiting
communication and increasing politics and conflict (Sony, UBS).
Tett notes that the Oxford English Dictionary describes a silo as a “system, process, depart-
ment, etc., that operates in isolation from others.” These silos can be created when we orga-
nize work processes or employees in a certain way, many of which we describe in this chapter.
However, Tett takes it a step further to prove that they also exist in our minds. Regardless of
where the silo originates from, silos have the ability to create tunnel vision for individuals and
limit how they think about and view the world around them. Sometimes silos can be benefi-
cial (efficiency), but they can also be dangerous if they keep groups from communicating or
stif le innovation.
©Roberts Publishing Services
Matrix structures are more complex designs that try to take advantage of two types of structures
at the same time. Companies such as Xerox, General Electric, and Dow Corning were among the
first to adopt this type of structure.48 Figure 15-5 provides an example of a matrix structure. In
this example, employees are distributed into teams or projects within the organization on the basis
of both their functional expertise and the product that they happen to be working on. Thus, the
matrix represents a combination of a functional structure and a product structure. There are two
important points to understand about the matrix structure. First, the matrix allows an organiza-
tion to put together very flexible teams based on the experiences and skills of their employees.49
This flexibility enables the organization to adjust much more quickly to the environment than a
traditional bureaucratic structure would.
Final PDF to printer
496 C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 496 10/17/17 11:43 AM
Traditionally, IBM has structured its 386,000-employee organization along geographic lines. Some
might argue that IBM was the company that pioneered the first multinational geographic struc-
ture by setting up mini-IBMs in countries around the globe. Each country in which IBM operated
had its own workforce and management team that reacted to the clients for whom it provided ser-
vices in that country. The structure made perfect sense in a world in which consultants needed to
be on location with their clients when those customers were having software or computer issues.
However, IBM’s environmental factors are changing rapidly. Competitors, especially those com-
ing out of India, are providing many of the same services for significantly less money.
To change along with its competitors and respond to the “flattening world,” IBM is reorganiz-
ing its workforce by creating and utilizing what it calls “competency centers.” These centers will
group employees from around the world on the basis of the specific skill sets that they have to offer
clients. Some workers will be grouped into one location that can service clients all over the world
through the use of technology. For instance, a few years ago IBM announced that it would invest
$300 million over 10 years in its Costa Rica service center, which serves as a strategic services hub
for the company and intends to employ up to 1,000 people. The facility supports clients mainly as
a cloud computing center of competency. In Boulder, Colorado, IBM employs 6,200 profession-
als as part of a “call center” that monitors clients’ computing functions worldwide. If something
goes wrong in one of IBM’s 426 data centers, employees in Boulder will more than likely be the
ones to handle it or send it to someone who can. Other IBM workers are grouped by broader geo-
graphic locations so that they can still be in relatively close proximity to their customers. When
these employees are needed by a client, IBM has a computer database that allows it to put together
teams of highly specialized consultants by examining the skill sets listed on 70,000 IBM résumés.
A recent move by IBM was to consolidate all of its U.S. marketing department (2,600 employees)
into six cities—more than 40 percent had been telecommuting.
Does this change in structure sound familiar to you? It should—though IBM is maintaining
some of its geographic structure, its organizational structure is becoming more functional. As the
world becomes flatter through technology, clients expect the best talent from around the world,
not just the best talent that happens to be sitting in their city. These structural changes allow IBM
to give clients just that. For IBM, these are the necessary changes that come with being a global
company. In fact, IBM has been called “the world’s most complex organization.” It’s not just
about structure though, according to one-time IBM Senior Vice President Robert W. Moffat Jr.:
“Globalization is more than that. Our customers need us to put the right skills in the right place
at the right time.”
OB INTERNATIONALLY
Sources: J. Kessler, “IBM, Remote-Work Pioneer, Is Calling Thousands of Employees Back to the Office,” Quartz.com,
March 21, 2017: https://qz.com/924167/ibm-remote-work-pioneer-is-calling-thousands-of-employees-back-to-the-office/;
“IBM Drives Flash Technology Deeper into the Enterprise to Speed Big Data Analytics,” IBM press release, April 11, 2013,
http://www-03.ibm.com/press/us/en/pressrelease/40832.wss; “New IBM Delivery Center Opens in Costa Rica,” PR News-
wire, May 2012; J. Galbraith, “The Multi-Dimensional and Reconfigurable Organization,” Organizational Dynamics 39
(2010), pp. 115–25; and S. Hamm, “Big Blue Shift,” BusinessWeek, June 5, 2006, pp. 108–10.
Second, the matrix gives each employee two chains of command, two groups with which to
interact, and two sources of information to consider. This doubling of traditional structural ele-
ments can create high stress levels for employees if the demands of their functional grouping are
at odds with the demands of their product- or client-based grouping.50 The situation can become
particularly stressful if one of the two groupings has more power than the other. For example, it
may be that the functional manager assigns employees to teams, conducts performance evalua-
tions, and decides raises—making that manager more powerful than the product- or client-based
Final PDF to printer
497C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 497 10/17/17 11:43 AM
manager.51 Although matrix structures have been around since the 1960s, the number of organiza-
tions using them is growing as teams become a more common form of organizing work. They have
also become more common in global companies, with the functional grouping balanced by a geo-
graphic grouping. In fact, numerous companies now have matrix structures with enough layers to
be considered four- or five-dimensional.52 Fiat-Chrysler’s matrix structure is incredibly complicated
with CEO Sergio Marchionne sitting right in the middle with 38 direct reports! (You can compare
that with GM CEO Mary Barra’s 12 and Ford CEO Mark Fields’s 17.)53 Bristol-Myers Squibb, the
New York–based biopharmaceutical company, is heavily matrixed throughout the company. As
Jane Luciano, former vice president of global learning and organizational development, explained,
“We have the matrix every way it can be organized, including geographically, functionally, and on
a product basis. Based on our size and in a highly regulated industry, the matrix helps us to gain
control of issues as they travel around the globe and to leverage economies of scale.”54
S U M M A RY: W H Y D O S O M E O R GA N I Z AT I O N S H AV E
D I F F E R E N T ST R U C T U R E S T H A N OT H E R S ?
So why do some organizations have different structures? As shown in Figure 15-6, differences in
the business environment, company strategy, technology, and firm size cause some organizations
to be designed differently than others. These differences create variations in the five elements of
organizational structure: work specialization, chain of command, span of control, centralization,
and formalization. These elements then combine to form one of a number of common organiza-
tional forms, including (1) a simple structure; (2) a bureaucratic structure, which may come in
FIGURE 15-5 Matrix Structure
President/
CEO
Project Team
Marketing/Sales
Product A
Project Team
Mfg/Operations
Product C
Project Team
R&D
Product C
Project Team
Finance
Product C
Project Team
Marketing/Sales
Product C
Vice President
Product C
Project Team
Mfg/Operations
Product A
Project Team
R&D
Product A
Project Team
Finance
Product A
Vice President
Product A
Vice President
Product B
Project Team
Mfg/Operations
Product B
Project Team
R&D
Product B
Project Team
Finance
Product B
Project Team
Marketing/Sales
Product B
Vice President
Mfg/Operations
Vice President
R&D
Vice President
Finance
Vice President
Marketing/Sales
Final PDF to printer
498 C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 498 10/17/17 11:43 AM
FIGURE 15-6 Why Do Some Organizations Have Different Structures Than Others?
Business
Environment
Company
Strategy
Technology
Size
Mechanistic vs. Organic
EFFICIENT FLEXIBLE
ORGANIZATIONAL STRUCTURE
Common Organizational Forms
• Simple Structure
• Bureaucratic Structures
– Functional
– Multi-divisional
– Product
– Geographic
– Client
-Matrix Structure
Elements of Structure
• Work Specialization
• Chain of Command
• Span of Control
• Centralization
• Formalization
functional, product, geographic, or client forms; or (3) a matrix structure. Some of these forms
are more mechanistic, whereas others are more organic. Taken together, these structures explain
how work is organized within a given company.
H O W I M P O R TA N T I S S T R U C T U R E ?
To some degree, an organization’s structure provides the foundation for almost everything in orga-
nizational behavior. Think about some of the things that organizational structure affects: com-
munication patterns between employees, the tasks an employee performs, the types of groups an
organization uses, the freedom employees have to innovate and try new things, how power and influ-
ence are divided up in the company . . . we could go on and on. Picture the walls of a house. The occu-
pants within those walls can decorate or personalize the structure as best they can. They can make it
Final PDF to printer
499C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 499 10/17/17 11:43 AM
more attractive according to their individual preferences by adding and taking away furniture, but at
the end of the day, they’re still stuck with that structure. They have to work within the confines that
the builder envisioned (unless they’re willing to tear down walls or build new ones at considerable
time, effort, and expense!). Organizational structures operate in much the same way for employees
and their managers. A given manager can do many things to try to motivate, inspire, and set up an
effective work environment so that employees have high levels of performance and commitment. At
the end of the day, however, that manager must work within the structure created by the organization.
Given how many organizational forms there are, it’s almost impossible to give an accurate rep-
resentation of the impact of organizational structure on job performance. In fact, we might even
say that an organization’s structure determines what job performance is supposed to look like! In
addition, the elements of structure are not necessarily good or bad for performance. For example, a
narrow span of control is not necessarily better than a broad one; rather, the organization must find
the optimal solution based on its environment and culture. One thing we can say, as illustrated in
Figure 15-7, is that changes to an organization’s structure can have negative effects on the employees
who work for the company, at least in the short term. The process of changing an organization’s
structure is called restructuring. Research suggests that restructuring has a small negative effect on
task performance, likely because changes in specialization, centralization, or formalization may lead
to confusion about how exactly employees are supposed to do their jobs, which hinders learning
and decision making. Restructuring has a more significant negative effect on organizational com-
mitment, however. Restructuring efforts can increase stress and jeopardize employees’ trust in the
organization.55 There is some evidence that the end result is a lower level of affective commitment
on the part of employees, because they feel less emotionally attached to the firm.
15.5
When an organization
makes changes to its
structure, how does that
restructuring affect job
performance and organiza-
tional commitment?
FIGURE 15-7 Effects of Organizational Structure on Performance and Commitment
Source: K.P. DeMeuse, M.L. Marks, and G. Dai, “Organizational Downsizing, Mergers and Acquisitions, and Strategic
Alliances: Using Theory and Research to Enhance Practice,” in APA Handbook of Industrial and Organizational Psychology,
Vol. 3, ed. S. Zedeck (Washington: APA, 2011), pp. 729–68; C. Gopinath and T.E. Becker, “Communication, Procedural
Justice, and Employee Attitudes: Relationships under Conditions of Divestiture,” Journal of Management 26 (2000), pp.
63–83; D. van Dierendonck and G. Jacobs, “Survivors and Victims, a meta-analytical reveiw of fairness and organizational
commitment after downsizing,” in British Journal of Management 23 (2012), pp. 96-109; and J. Brockner, G. Spreitzer, A.
Mishra, W. Hockwarter, L. Pepper, and J. Weinberg, “Perceived Control as an Antidote to the Negative Effects of Layoffs
on Survivors’ Organizational Commitment and Job Performance,” Administrative Science Quarterly 49 (2004), pp. 76–100.
Restructuring has a weak negative e�ect on Performance. Task Performance tends
to be somewhat lower in organizations that restructure. Not much is known about the
impact of restructuring on Citizenship Behavior or Counterproductive Behavior.
Restructuring has a moderate negative e�ect on Commitment. A�ective
Commitment tends to be lower in organizations that restructure. Not much is known
about the impact of restructuring on Continuance Commitment or Normative
Commitment.
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
Job
Performance
Organizational
Commitment
Restructuring
Restructuring n e g a t i v e
n e g a t i v e
Final PDF to printer
500 C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 500 10/17/17 11:43 AM
A P P L I C AT I O N : R E S T R U C T U R I N G
As you’ve read through our discussion of organizational structure, you may have noticed how
important it is for organizations to adapt to their environment. The first step in adapting is recog-
nizing the need to change. The second (and sometimes much more problematic) step is actually
adapting through restructuring. Organizations attempt to restructure all the time—in fact, it’s dif-
ficult to pick up a copy of Bloomberg Businessweek or Fortune without reading about some orga-
nization’s restructuring initiatives. General Motors has undertaken a massive restructuring effort
no less than eight times over the past 25 years!56 (And look where that got them . . . !) Most of the
examples we put into this chapter pertain to organizations that were restructuring.
Restructuring efforts come in a variety of shapes and sizes. Organizations may change from
a product-based structure to a functional structure, from a functional structure to a geographic-
based structure, and on and on. However, the most common kind of restructuring in recent years
has been a “flattening” of the organization. Why do so many organizations do this? Primarily to
show investors that they are reducing costs to become more profitable. Think back to our discus-
sion of tall and flat organizational hierarchies, in which we noted that taller organizations have
more layers of management. Many restructuring efforts are designed to remove one or more of
those layers to reduce costs. Of course, removing such layers doesn’t just mean deleting boxes on
an organizational chart; there are actual people within those boxes! Thus, efforts to flatten gener-
ally require organizations to lay off several of the managers within the company.
When employees get a sense that their company might be getting ready to restructure, it
causes a great deal of stress because they become worried that they will be one of those to lose
their jobs. No company’s employees have had to go through more over the last decade than those
at Hewlett-Packard (HP). When, in the mid-2000s, ex-CEO Carly Fiorina decided to restructure
Hewlett-Packard, it caused widespread fear and panic among employees. For the 60 days prior
to the actual restructuring announcement, work came to a standstill at the company—tales of
high stress, low motivation, political battles, and power struggles abounded.57 It’s estimated that
Hewlett-Packard as a company lost an entire quarter’s worth of productivity.58 Since Fiorina’s
actions, two subsequent CEOs have restructured the company when they took over. Mark Hurd
essentially undid everything Fiorina had done by unmerging units that Fiorina had merged. CEO
Meg Whitman then came in to reorganize it all again by re-merging HP’s PC and printer units
(of course, accompanied by an announcement of further layoffs).59 When that didn’t solve the
financial problems, HP announced that it was going to split the organization into two com-
pletely separate companies, both of which will be Fortune 50 companies when all is said and
done.60 Whitman stated, “Today I’m more convinced than ever that this is the right thing to do.”61
One of the ways in which managers can do their best to help a restructuring effort succeed is
to help manage the layoff survivors (i.e., employees who remain with the company following a lay-
off). Many layoff survivors are known to experience a great deal of guilt and remorse following an
organization’s decision to remove some employees from the company.62 Researchers and practi-
tioners recently have been trying to understand layoff survivors better, as well as how to help them
adjust more quickly. One of the major problems for layoff survivors is the increased job demands
placed on them. After all, that coworker or boss the employee had was doing something. Layoff
survivors are generally burdened with having to pick up the leftover tasks that used to be done by
somebody else.63 This burden creates a sense of uncertainty and stress.64 Research suggests that
one of the best ways to help layoff survivors adjust is to do things that give them a stronger sense
of control.65 Allowing survivors to have a voice in how to move forward or help set the plans about
how to accomplish future goals are two ways managers can help employees feel more in control.
In addition, honest and frequent communication with layoff survivors greatly helps reduce their
feelings of uncertainty and stress.66 This communication is especially necessary when the orga-
nization is hiring at the same time it’s firing. For instance, when Boeing announced a plan to cut
9,000 jobs, it had more than 1,500 current and anticipated job openings.67 Many other employers,
such as Microsoft, AT&T, and Time Warner, have experienced something similar.68 This conflict
sends mixed messages to those being laid off, as well as to the survivors. One sobering fact is that
15.6
What steps can organiza-
tions take to reduce the
negative effects of restruc-
turing efforts?
Final PDF to printer
501C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 501 10/17/17 11:43 AM
the survivors never know whether the restructuring will lead to success, or if it’s simply a process
of grasping at straws to avoid the ultimate demise of the company. For a restructuring to be truly
successful, it requires more than simply changing lines on an organizational chart; it demands a
different way of working for employees.69
15.1 An organization’s structure formally dictates how jobs and tasks are divided and coordi-
nated between individuals and groups within the organization. This structure, partially
illustrated through the use of organizational charts, provides the foundation for organizing
jobs, controlling employee behavior, shaping communication channels, and providing a
lens through which employees view their work environment.
15.2 There are five major elements to an organization’s structure: work specialization, chain of
command, span of control, centralization of decision making, and formalization. These
elements can be organized in such a way as to make an organization more mechanistic in
nature, which allows it to be highly efficient in stable environments, or more organic in
nature, which allows it to be flexible and adaptive in changing environments.
15.3 Organizational design is the process of creating, selecting, or changing the structure of an
organization. Factors to be considered in organizational design include a company’s busi-
ness environment, its strategy, its technology, and its size.
15.4 There are literally thousands of organizational forms. The most common is the simple
structure, which is used by most small companies. Larger companies adopt a more
bureaucratic structure. This structure may be functional in nature, such that employees
are grouped by job tasks, or multi-divisional, such that employees are grouped by product,
geography, or client. Organizations may also adopt a matrix structure that combines func-
tional and multi-divisional grouping.
15.5 Organizational restructuring efforts have a weak negative effect on job performance. They
have a more significant negative effect on organizational commitment, because employees
tend to feel less emotional attachment to organizations that are restructuring.
15.6 To reduce the negative effects of restructuring, organizations should focus on managing
the stress levels of the employees who remain after the restructuring. Providing employees
with a sense of control can help them learn to navigate their new work environment.
TA K E AWAY S
K E Y T E R M S
• Organizational structure p. 482
• Organizational chart p. 482
• Work specialization p. 483
• Chain of command p. 484
• Span of control p. 484
• Centralization p. 486
• Formalization p. 487
• Mechanistic organizations p. 488
• Organic organizations p. 489
• Organizational design p. 489
• Business environment p. 490
• Company strategy p. 490
• Technology p. 490
• Company size p. 490
• Simple structure p. 491
• Bureaucratic structure p. 491
• Functional structure p. 492
• Multi-divisional structure p. 492
• Product structure p. 493
• Geographic structure p. 494
• Client structure p. 494
• Matrix structure p. 495
• Restructuring p. 499
Final PDF to printer
502 C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 502 10/17/17 11:43 AM
15.1 Is it possible to be a great leader of employees in a highly mechanistic organization? What
special talents or abilities might be required?
15.2 Why do the elements of structure, such as work specialization, formalization, span of con-
trol, chain of command, and centralization, have a tendency to change together? Which of
the five do you feel is the most important?
15.3 Which is more important for an organization: the ability to be efficient or the ability to
adapt to its environment? What does this say about how an organization’s structure should
be set up?
15.4 Which of the organizational forms described in this chapter do you think leads to the high-
est levels of motivation among workers? Why?
15.5 If you worked in a matrix organization, what would be some of the career development
challenges that you might face? Does the idea of working in a matrix structure appeal to
you? Why or why not?
D I S C U S S I O N Q U E S T I O N S
After five years under Apple CEO Tim Cook’s leadership, Apple’s revenue has tripled, it has
doubled the number employees working for the company to over 115,000, and its cash reserves
have grown to a record $246 billion. Cook says, “Our reason for being is the same as it’s always
been. To make the world’s best products that really enrich people’s lives.” Apple’s functional
structure has helped that product development to be wildly successful through collaboration,
beating out a number of competitors like Sony whose multi-divisional structures keep them from
sharing information, expertise, and technology in the most effective way. However, it causes
problems for them as well. Apple desktop users are frustrated with a lack of updates (over three
years running) and iPhone/iPad users get frustrated that Apple waits to provide major updates
to its software systems until it has a new product on the market. Apple shareholders are upset
that Apple isn’t making more money off of their services (iTunes and other apps). These kinds of
issues arise partly because nobody is “in charge” of those products or services.
One of the reasons companies eschew functional (expertise) structures is that it makes
it more difficult to hold managers accountable for things when they go wrong. In a multi-
divisional structure, if a product fails or a region or unit doesn’t make a certain amount of
profit—there is someone to point to. When an issue arises with Windows or Office or Microsoft
Cloud, Microsoft knows where to go and whom to hold responsible because someone is in
charge of those products. Apple’s philosophy is different. Apple CEO Tim Cook said, “They’re
not things where we run separate [profits and losses] on, because we don’t do that—we don’t
believe in that. We manage the company at the top and just have one [profit and loss] and don’t
worry about the iCloud team making money and the Siri team making money. We want to have
a great customer experience, and we think measuring all these things at that level would never
achieve such a thing.”
As Apple becomes even larger though, their structure is going to be harder to maintain.
The fact is that they could be making updates much more frequently to a wide range of
products, upgrading software, and providing services that could allow them to be much more
profitable if they were to adopt a different structure. They have also been blessed with great
leadership given their very centralized approach to decision making. The question is where do
they go from here?
C A S E : A P P L E
Final PDF to printer
503C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 503 10/17/17 11:43 AM
15.1 Why do you think Apple’s functional structure has been so important for their products?
15.2 What are the outside forces that might make Apple change their organizational structure
in the future?
15.3 How might Apple change their structure in a way that allows them to have the best of both
worlds?
Sources: A. Lashinsky. “Inside Apple,” Fortune, May 23, 2011, pp. 125–34; R. Tetzeli. “Playing the Long Game Inside
Tim Cook’s Apple,” Fast Company, August 8, 2016: https://www.fastcompany.com/3062090/playing-the-long-game-inside-
tim-cooks-apple; B. Thompson. “Apple’s Organizational Crossroads,” Stratechery.com, April 19, 2016: https://stratechery
.com/2016/apples-organizational-crossroads/; C. Wang. “Apple’s Cash Hoard Swells to Record $246.09 Billion,” cnbc
.com, January 31, 2017: http://www.cnbc.com/2017/01/31/apples-cash-hoard-swells-to-record-24609-billion.html; and
M. Yglesias. “Apple May Have Finally Gotten Too Big for its Unusual Corporate Structure,” vox.com, April 4, 2017: http://
www.vox.com/new-money/2016/11/27/13706776/apple-functional-divisional.
E X E R C I S E : C R E AT I V E C A R D S , I N C .
The purpose of this exercise is to demonstrate the effects of structure on organizational effi-
ciency. This exercise uses groups, so your instructor will either assign you to a group or ask you
to create your own group. The exercise has the following steps:
15.1 Creative Cards, Inc., is a small but growing company, started 10 years ago by Angela Naom, a
graphic designer. The company has added many employees over the years but without a master
plan. Now Angela wants to reorganize the company. The current structure of Creative Cards,
Inc., is shown in the figure below. Review the organizational chart, and identify at least 10 prob-
lems with the design of Creative Cards, Inc. Be sure to consider work specialization, chain of
command, span of control, centralization, and formalization in developing your answer.
West Coast
Operations V.P.
H.R. V.P.
East Coast
Sales Mgr.
Legal
4 emp.
Quality Control
Mgr.
Buyer I
Inks
Press
Operator
Sanitation
Engineer
Distribution
Manager.
Northern
Region
Sales Reps.
8 emps.
Janitors
4 emp.
Sales V.P. Creative Dir. Exec. V.P.
Art Design Mgr. Verse Writer Printing Sup.
Payroll Mgr. Finance Dir. Admin. Asst.
President
Sympathy
Card Sup.
Birthday
Card Sup.
E-Card
Sup.
Card Cutting
Sup.
4 emps. 60 emps. 25 emps. 10 emps. 14 emps.
Final PDF to printer
504 C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 504 10/17/17 11:43 AM
15.1 Source: Slater, D.
“Match Inc. CEO Sam
Yagan on Even All
Stars Needing Struc-
ture.” Fast Company,
November 26, 2012.
15.2 Kranz, G. “Aetna’s
Odyssey Comes Full
Circle.” Workforce
Management Online,
March 2009, http://
www.workforce
.com/archive/
feature/26/26/53/
index.php?ht5.
15.3 Hackman, J.R., and
G. R. Oldham. Work
Redesign. Reading,
MA: Addison-Wesley,
1980.
15.4 Silverman, R.E.
“Who’s the Boss?
There Isn’t One.” The
Wall Street Journal,
June 20, 2012, p. B1.
15.5 Simon, H. Administra-
tive Behavior. New
York: Macmillan, 1947.
15.6 Source: Jargon, J.
“Chipotle Opts for
One CEO as Company
Hones Focus,” Wall
Street Journal, Dec. 13,
2016, p. B1; McGrath,
M. “Whole Foods
Eliminates Co-CEO
Setup, Names John
Mackey as Sole Chief
Executive,” Forbes.
com, Nov. 2, 2016.
15.7 Meier, K.J., and J.
Bohte. “Ode to Luther
Gulick: Span of Con-
trol and Organizational
Performance.” Admin-
istration and Society 32
(2000), pp. 115–37.
15.8 Theobald, N.A., and
S. Nicholson-Crotty.
“The Many Faces
of Span of Control:
Organizational Struc-
ture across Multiple
Goals.” Administration
and Society 36 (2005),
pp. 648–60.
15.9 Neilson, G.L. and J.
Wulf. “How Many
Direct Reports.”
Harvard Business
Review, April 2014, pp.
112–19; and Child,
J., and M. McGrath.
“Organizations
Unfettered: Organi-
zational Forms in an
Information-Intensive
Economy.” Academy
of Management Jour-
nal 44 (2001),
pp. 1135–48.
15.10 Hymowitz, C. “Today’s
Bosses Find Mentor-
ing Isn’t Worth the
Time and Risks.” The
Wall Street Journal,
March 13, 2006, p. B1.
15.11 Source: Nuttal, C.
“Intel Cuts 1,000
Management Jobs.”
Financial Times,
July 14, 2006, p. 23.
15.12 Source: “Mcdonald’s
Announces Initial
Steps in Turnaround
Plan.” PRNewswire,
May 4, 2015.
15.13 Source: Michaels,
D. “Airbus on Track to
Double Profit Margin
by 2015.” The Wall
Street Journal, June 17,
2013, p. b1.
15.14 Source: Gary L.
Neilson and Julie
Wulf, “How Many
Direct Reports”
Harvard Business
Review (April 2012).
15.15 Source: Otterbourg,
K. “Sheetz Puts the
Gas in Gastronomy.”
Fortune, May 20, 2013,
pp. 142–48.
15.16 Groszkiewicz, D., and
B. Warren. “Alcoa’s
Michigan Casting Cen-
ter Runs the Business
from the Bottom Up.”
Journal of Organiza-
tional Excellence, Spring
2006, pp. 13–23.
15.17 Silverman, “Who’s the
Boss?”; Silverman, R.E.
“At Zappos, Banishing
the Bosses Brings
Confusion.” The Wall
Street Journal, May 21,
2015, p. A1.
E N D N OT E S
15.2 Create a new organizational design that you think would help the company operate more
efficiently and effectively.
15.3 Class discussion, whether in groups or as a class, should center on how Creative Cards
could best manage such a significant restructuring.
Final PDF to printer
505C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 505 10/17/17 11:43 AM
15.18 Kiger, P. “Power of the
Individual.” Workforce
Management,
February 27, 2006,
pp. 1, 22–27.
15.19 Hempel, P.S.; Z.
Zhang; and Y. Han.
“Team Empowerment
and the Organi-
zational Context:
Decentralization and
Contrasting Effects of
Formalization.” Jour-
nal of Management 38
(2012), pp. 475–501.
15.20 Toh, S.M.; F.P.
Morgeson; and M.A.
Campion. “Human
Resource Configura-
tions: Investigating
Fit within the Orga-
nizational Context.”
Journal of Applied
Psychology 93 (2008),
pp. 864–82.
15.21 Walter, F., and H.
Bruch. “Structural
Impacts on the
Occurrence and Effec-
tiveness of Transfor-
mational Leadership:
An Empirical Study
at the Organizational
Level of Analysis.” The
Leadership Quarterly
21 (2010), pp. 765–82.
15.22 O’Brien, J. “Microsoft
Reboots.” Fortune,
October 26, 2009,
pp. 98–108.
15.23 Keats, B., and H.
O’Neill. “Organiza-
tional Structure: Look-
ing through a Strategy
Lens.” In Handbook of
Strategic Management,
ed. M.A. Hitt, R.E.
Freeman, and J.S.
Harrison. Oxford, UK:
Blackwell, 2003, pp.
520–42.
15.24 Collins, J. How the
Mighty Fall. New
York: HarperCollins,
2009.
15.25 Scott, W.R., and G.F.
Davis. Organizations
and Organizing: Ratio-
nal, Natural, and Open
System Perspectives.
Englewood Cliffs,
NJ: Pearson Prentice
Hall, 2007.
15.26 Kane, Y.I., and P.
Dvorak. “Howard
Stringer, Japanese
CEO.” The Wall Street
Journal, March 3,
2007, pp. A1, A6; and
Singer, M. “Stringer’s
Way.” The New Yorker,
June 5, 2006,
pp. 46–57.
15.27 Gaudiosi, J. “Why
Sony Didn’t Learn
from Its 2011 Hack.”
Fortune, December 24,
2014. http://fortune.
com/2014/12/24/
why-sony-didnt-learn-
from-its-2011-hack/.
15.28 Porter, M. Competitive
Strategy. New York:
The Free Press, 1980.
15.29 Woodward, J. Indus-
trial Organization:
Theory and Practice.
London: Oxford Uni-
versity Press, 1965.
15.30 Miller, C.C.; W.H.
Glick; Y. Wang;
and G.P. Huber.
“Understanding
Technology–Structure
Relationships: Theory
Development and
Meta-Analytic Theory
Testing.” Academy
of Management
Journal 34 (1991),
pp. 370–99.
15.31 Gooding, J.Z., and
J.A. Wagner III. “A
Meta-Analytic Review
of the Relation-
ship between Size
and Performance:
The Productivity
and Efficiency of
Organizations and
Their Subunits.”
Administrative Science
Quarterly 30 (1985),
pp. 462–81. See
also Bluedorn, A.C.
“Pilgrim’s Progress:
Trends and Conver-
gence in Research on
Organizational Size
and Environments.”
Journal of Manage-
ment 21 (1993),
pp. 163–92.
15.32 Lawler, E.E., III.
“Rethinking Organi-
zational Size.” Organi-
zational Dynamics 26
(1997), pp. 24–35.
15.33 Kiger, “Power of the
Individual.”
15.34 Dunbar, R. “Neocor-
tex Size as a Con-
straint on Group Size
in Primates.” Journal
of Human Evolution 22
(1992), pp. 469–93.
See also, Gladwell,
M. The Tipping Point—
How Little Things
Make a Big Difference.
New York: Little,
Brown and Company,
2000, pp. 177–81,
185–86.
15.35 Source: Delaney, K.J.
“Something weird
happens to companies
when they hit 150
people.” Quartz.com,
Nov. 29, 2016.
15.36 Silverman, R.E.
“Corporate Field
Final PDF to printer
506 C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 506 10/17/17 11:43 AM
Trip: Learning from
Startups.” The Wall
Street Journal, March
27, 2013, p. B8.
15.37 Scott and Davis,
Organizations and
Organizing.
15.38 Miles, R.E., and C.C.
Snow. Organizational
Strategy, Structure, and
Process. New York:
McGraw-Hill, 1978.
15.39 Boyle, M. “Managing
Forward.” Business-
Week, September 14,
2009, p. 13.
15.40 Singer, “Stringer’s
Way.”
15.41 Boyle, M. “Managing
Forward.”
15.42 Fry, M. “Campbell
Soup Shakes Up Its
Structure, Leader-
ship.” NJBIZ, January
29, 2015. http://
www.njbiz.com/
article/20150129/
NJBIZ01/150129706/
campbell-soup-
shakes-up-its-structure-
leadership.
15.43 Source: Kubota, Y.
“Toyota Confirms
Shake-Up in Efficiency
Drive.” Wall Street
Journal, March 2, 2016.
15.44 Source: Tett, G. The
Silo Effect. New York:
Simon & Schuster,
2015.
15.45 Welch, D.; D. Kiley;
and C. Matlack.
“Tough Love at Chrys-
ler.” BusinessWeek,
August 24 and 31,
2009, pp. 26–28.
15.46 “Changing the Way
The World Works—
Regus PLC Annual
Report and Accounts
2014.” Regus.com,
March 3, 2015, http://
www.regus.com/
images/Regus_plc_
consolidated_report_
and_accounts_2014_
tcm304-57842 ;
and Hosford, C.
“Behind the Regus–
HQ Merger: A Clash
of Cultures That
Wasn’t.” Sales and
Marketing Manage-
ment, March 2006,
pp. 47–48.
15.47 Goldman Sachs com-
pany website accessed
April 2017: http://
www.goldmansachs
.com/careers/why-
goldman-sachs/our-
divisions/index.html
15.48 Burns, L.R., and D.R.
Wholey. “Adoption
and Abandonment of
Matrix Management
Programs: Effects
of Organizational
Characteristics and
Interorganizational
Programs.” Academy
of Management
Journal 36 (1993),
pp. 106–38.
15.49 Hackman, J.R. “The
Design of Work
Teams.” In Handbook
of Organizational
Behavior, ed. J.W.
Lorsch. Englewood
Cliffs, NJ: Prentice
Hall, 1987,
pp. 315–42.
15.50 Larson, E.W., and
D.H. Gobeli. “Matrix
Management: Contra-
dictions and Insight.”
California Manage-
ment Review 29
(1987), pp. 126–38.
15.51 Rees, D.W., and
C. Porter. “Matrix
Structures and the
Training Implica-
tions.” Industrial
and Commercial
Training 36 (2004),
pp. 189–93.
15.52 Greenwood, R.; T.
Morris; S. Fairclough;
and M. Boussebaa.
“The Organizational
Design of Transna-
tional Professional
Service Firms.” Orga-
nizational Dynamics
39 (2010), pp. 173–83.
15.53 Wayland, M. “Mar-
chionne at Center
of Complex, Suc-
cessful FCA.” The
Detroit News, July 1,
2015: http://www
.detroitnews.com/
story/business/autos/
chrysler/2015/07/01/
marchionne-fca/
29597865/
15.54 Source: Derven, M.
“Managing the Matrix
in the New Normal.”
T + D, July 2010,
pp. 42–47.
15.55 Gandolfi, F., and M.
Hansson. “Causes
and Consequences of
Downsizing: Toward
and Integrative
Framework.” Journal
of Management and
Organization 17
(2011), pp. 498–521.
15.56 Bigman, D. “How
General Motors Was
Really Saved.” Forbes,
November 18, 2013;
Taylor, A., III. “GM
and Me.” Fortune,
December 8, 2008,
pp. 92–100; and Taylor,
A., III. “GM Gets Its
Act Together. Finally.”
Fortune, April 5, 2004,
pp. 136–46.
Final PDF to printer
507C H A P T E R 1 5 Organizational Structure
coL27660_ch15_479-507.indd 507 10/17/17 11:43 AM
15.57 Gopinath, C. “Busi-
nesses in a Merger
Need to Make
Sense Together.”
Businessline, June 26,
2006, p. 1.
15.58 Hamm, J. “The Five
Messages Leaders
Must Manage.” Har-
vard Business Review,
May 2006,
pp. 114–23.
15.59 Lashinsky, A. “The
Hurd Way: How
a Sales-Obsessed
CEO Rebooted HP.”
Fortune, April 17,
2006, pp. 27–34; and
Worthen, B. “H-P’s
Not-So-New Plan to
Unite PC, Printer
Units.” The Wall Street
Journal, March 20,
2012, p. B1.
15.60 McMillan, R. “As H-P
Split Nears, Bosses
Tick Off a Surgery
Checklist.” The Wall
Street Journal, June
30, 2015. http://www
.wsj.com/article_
email/as-h-p-split-
nears-bosses-tick-off-
a-surgery-checklist-
1435620372-lMy
QjAxMTE1MDM
2MDQzMzA0Wj.
15.61 Source: Vanian,
J. “Hewlett-Packard
Shares More Detail on
Its Plans to Split the
Company.” Fortune,
May 21, 2015.
15.62 Noer, D.M. Healing
the Wounds. San
Francisco: Jossey-Bass,
1993; and Mishra, K.;
G.M. Spreitzer; and A.
Mishra. “Preserving
Employee Morale Dur-
ing Downsizing.” Sloan
Management Review 39
(1998), pp. 83–95.
15.63 Conlin, M. “The Big
Squeeze on Workers:
Is There a Risk to
Wringing More from
a Smaller Staff?”
BusinessWeek, May 13,
2002, p. 96.
15.64 Amabile, T.M., and
R. Conti. “Changes
in the Work Environ-
ment for Creativity
during Downsizing.”
Academy of Manage-
ment Journal 42
(1999), pp. 630–40;
DeMeuse, K.P.; M.L.
Marks; and G. Dai.
“Organizational
Downsizing, Mergers
and Acquisitions, and
Strategic Alliances:
Using Theory and
Research to Enhance
Practice.” In APA
Handbook of Industrial
and Organizational
Psychology, Vol.
3, ed. S. Zedeck,
2011, Washington,
DC: APA, pp.
729–68; and Probst,
T.M. “Exploring
Employee Outcomes
of Organizational
Restructuring—
A Solomon Four-
Group Study.” Group
and Organization Man-
agement 28 (2003),
pp. 416–39.
15.65 Brockner, J.; G.
Spreitzer; A. Mishra;
W. Hockwarter; L.
Pepper; and J. Wein-
berg. “Perceived Con-
trol as an Antidote to
the Negative Effects
of Layoffs on Survi-
vors’ Organizational
Commitment and Job
Performance.” Admin-
istrative Science Quar-
terly 49 (2004), pp.
76–100; and Probst,
T.M. “Countering the
Negative Effects of
Job Insecurity through
Participative Decision
Making.” Journal of
Occupational Health
Psychology 10 (2005),
pp. 320–29.
15.66 Brockner, J. “The
Effects of Work
Layoffs on Survivors:
Research, Theory and
Practice.” In Research
in Organizational
Behavior, Vol. 10, ed.
B.M. Staw and L.L.
Cummings. Berkeley:
University of Califor-
nia Press, 1988, pp.
213–55; and Campion,
M.A.; L. Guerrero; and
R. Posthuma. “Reason-
able Human Resource
Practices for Making
Employee Downsizing
Decisions.” Organi-
zational Dynamics 40
(2011), pp. 174–80.
15.67 Tuna, C. “Many Com-
panies Hire as They
Fire.” The Wall Street
Journal, May 11, 2009,
p. B6.
15.68 Ibid.
15.69 Porras, J.I., and P.J.
Robertson. “Organiza-
tional Development:
Theory, Practice, and
Research.” In Hand-
book of Industrial and
Organizational Psychol-
ogy. Vol. 3, 2nd ed.,
ed. M.D. Dunnette
and L.M. Hough. Palo
Alto, CA: Consulting
Psychologists Press,
1992, pp. 710–822.
Final PDF to printer
coL27660_ch16_508-539.indd 508 10/17/17 11:44 AM
16
LEARNING GOALS
16.1 What is organizational culture, and what are its components?
16.2 What general and specific types can be used to describe an organization’s culture?
16.3 What makes a culture strong, and is it always good for an organization to have a strong culture?
16.4 How do organizations maintain their culture and how do they change it?
16.5 What is person–organization fit, and how does it affect job performance and organizational
commitment?
16.6 What steps can organizations take to make sure that newcomers will fit with their culture?
After reading this chapter, you should be able to answer the following questions:
Organizational Culture
INDIVIDUAL
OUTCOMES
INDIVIDUAL
MECHANISMS
INDIVIDUAL
CHARACTERISTICS
ORGANIZATIONAL
MECHANISMS
Organizational
Culture
Motivation
Trust, Justice,
& Ethics
Teams:
Characteristics &
Diversity
Learning &
Decision Making
Stress
Job
Satisfaction
Leadership:
Styles &
Behaviors
Organizational
Commitment
Job
Performance
GROUP
MECHANISMS
Ability
Personality &
Cultural Values
Teams:
Processes &
Communication
Leadership:
Power &
Negotiation
Organizational
Structure
Final PDF to printer
coL27660_ch16_508-539.indd 509 10/17/17 11:44 AM
T
he airline industry is known for being one of the most
demanding and stressful work environments to work
for. Employees have to deal with all kinds of potential
issues including irate customers and many times they have
very little control of the situations they are placed in. Two
airline companies, Delta and United, have been in the news
largely because of their organizational cultures. Delta has
been praised for handling issues while relying on a culture
based largely on positive values and empowerment while
United has been just the opposite. Each airline has about
85,000 employees and has gone through a major merger
within the last decade. During a merger, companies have to
decide which of the two company cultures to adopt moving
forward (or potentially a mix). Most outsiders say that Delta
picked the right culture to maintain (over Northwest’s) and
United picked the wrong one (over Continental’s).
Based out of Atlanta, Delta’s culture can be traced all
the way back to founder C.E. Woolman who was constantly
focused on customer service and asked employees to put
themselves in the passenger’s shoes when making deci-
sions. Delta’s employees see themselves as part of a “fam-
ily” and are pushed to think that way starting the day they
are hired. Company programs such as active employee
involvement groups and “Velvet 360,” which lets around
8,000 frontline employees meet and interact with company
executives every year, help to maintain this mindset. Delta
CEO Ed Bastian says, “Keeping a values-based culture
vibrant and alive isn’t easy. It takes a relentless focus and
commitment, and it has to be more than just lip service.”
United, on the other hand, has developed a culture
focused more on efficiency and cost-cutting. Taking these
values to the extreme has resulted in a workplace where
employees are constantly scared to break rules out of fear
of being fired and executives are seen as “elitist.” Based
in Chicago, United has been rated the lowest on most
major performance metrics over the last five years and
is responsible for 43 percent of all consumer complaints
filed against U.S. airlines. Not only customers feel the cost-
cutting though; even United’s new uniforms were seen
as cheap by employees. However, employees are hope-
ful that new CEO Oscar Munoz can help balance various
aspects of their culture although it has been slow-going. A
United flight attendant says, “The airline was just incredibly
sick and Oscar Munoz is like a shot of penicillin. It’s going
to get better, but it has to have some time to actually settle
in and work.”
DELTA AIRLINES AND UNITED AIRLINES
©RosaIreneBetancourt 11/Alamy
Final PDF to printer
510 C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 510 10/17/17 11:44 AM
O R G A N I Z AT I O N A L C U LT U R E
In almost every chapter prior to this point, we have simply given you definitions of important
topics. However, there are just about as many definitions of organizational culture as there are
people who study it. In fact, research on organizational culture has produced well over 50 differ-
ent definitions!1 It seems that the term culture means a great many things to a great many people.
Definitions of culture have ranged from as broad as, “The way we do things around here”2 to as
specific as . . . well, let’s just suffice it to say that they can get complicated. Not surprisingly, the
various definitions of organizational culture stem from how people have studied it. Sociologists
study culture using a broad lens and anthropological research methods, like those applied to study
tribes and civilizations. Psychologists tend to study culture and its effects on people using survey
methods.3 In fact, many psychologists actually prefer the term climate, but for our purposes, we’ll
use the two terms interchangeably. In this chapter, we define organizational culture as the shared
social knowledge within an organization regarding the rules, norms, and values that shape the
attitudes and behaviors of its employees.4
This definition helps highlight a number of facets of organizational culture. First, culture is
social knowledge among members of the organization. Employees learn about most important
aspects of culture through other employees. This transfer of knowledge might be through explicit
communication, simple observation, or other, less obvious methods. In addition, culture is shared
knowledge, which means that members of the organization understand and have a degree of con-
sensus regarding what the culture is. Second, culture tells employees what the rules, norms, and
values are within the organization. What are the most important work outcomes to focus on?
What behaviors are appropriate or inappropriate at work? How should a person act or dress while
at work? Indeed, some cultures even go so far as to say how employees should act when they
aren’t at work. Third, organizational culture shapes and reinforces certain employee attitudes and
behaviors by creating a system of control over employees.5 There is evidence that your individual
goals and values will grow over time to match those of the organization for which you work.6 This
development really isn’t that hard to imagine, given how much time employees spend working
inside an organization.
W H Y D O S O M E O R G A N I Z AT I O N S H AV E D I F F E R E N T
C U LT U R E S T H A N OT H E R S ?
One of the most common questions people ask when you tell them where you are employed is,
“So, tell me . . . what’s it like there?” The description you use in your response is likely to have
a lot to do with what the organization’s culture is all about. In calculating your response to the
question, you might consider describing the kinds of people who work at your company. More
than likely, you’ll do your best to describe the work atmosphere on a regular day. Perhaps you’ll
painstakingly describe the facilities you work in or how you feel the employees are treated. You
might even go so far as to describe what it is that defines “success” at your company. All of those
answers give clues that help organizational outsiders understand what a company is actually like.
To give you a feel for the full range of potential answers to the “what’s it like there?” question, it’s
necessary to review the facets of culture in more detail.
C U LT U R E C O M P O N E N TS
There are three major components to any organization’s culture: observable artifacts, espoused
values, and basic underlying assumptions. You can understand the differences among these three
components if you view culture like an onion, as in Figure 16-1. Some components of an organiza-
tion’s culture are readily apparent and observable, like the skin of an onion. However, other com-
ponents are less observable to organizational outsiders or newcomers. Such outsiders can observe,
16.1
What is organizational
culture, and what are its
components?
Final PDF to printer
511C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 511 10/17/17 11:44 AM
FIGURE 16-1 The Three Components of Organizational Culture
Observable
Artifacts
Espoused
Values
Basic
Underlying
Assumptions
interpret, and make conclusions based on what they see on the surface, but the inside remains a
mystery until they can peel back the outside layers to gauge the values and assumptions that lie
beneath. When asked about his company’s success, Walter Robb, co-CEO of Whole Foods, said,
“If I could draw back the curtain, what you would see is a very strong culture of empowerment,
and that is the secret of Whole Foods.”7 The sections that follow review the culture components
in more detail.
OBSERVABLE ARTIFACTS Observable artifacts are the manifestations of an organization’s cul-
ture that employees can easily see or talk about. They supply the signals that employees interpret
to gauge how they should act during the workday. Artifacts supply the primary means of trans-
mitting an organization’s culture to its workforce. It’s difficult to overestimate the importance of
artifacts, because they help show not only current employees but also potential employees, cus-
tomers, shareholders, and investors what the organization is all about. There are six major types of
artifacts: symbols, physical structures, language, stories, rituals, and ceremonies.8
Symbols can be found throughout an organization, from its corporate logo to the images it
places on its website to the uniforms its employees wear. Think about what Nike’s “swoosh” rep-
resents: speed, movement, velocity. What might that symbol convey about Nike’s culture? Or
consider Apple Computer’s “apple” logo. That symbol brings to mind Newton’s discovery of grav-
ity under the apple tree, conveying the importance of innovation within Apple’s culture. When
you think of the words “dark suit, white shirt, tie,” what company do you think of? For many, the
symbol represents IBM because that summarizes the company’s long-standing dress code. Even
though that dress code hasn’t been in place at IBM for more than 20 years, it still symbolizes a
formal, bureaucratic, and professional culture.
Physical structures also say a lot about a culture. Is the workplace open? Does top management
work in a separate section of the building? Is the setting devoid of anything unique, or can employ-
ees express their personalities? While Takanobu Ito was CEO of Honda Motor, he sent a message
about the company’s culture in his office. Ito worked at a plain wooden desk in a room with a dozen
other executives.9 John Childress, founding partner of The Principia Group, tells the story of a Ford
executive he worked with whose entire office had burned down: “He’d been having terrible prob-
lems between departments. There were barriers that meant information wasn’t flowing. He had to
quickly rent new premises and all he could find was an open-plan building. The culture changed
Final PDF to printer
512 C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 512 10/17/17 11:44 AM
overnight because of the
different ways of work-
ing.”10 IDEO, a creative
design firm, also has
an open-office environ-
ment, though IDEO lets
employees set up their
offices however they like.
When you walk around
their work areas, you’ll be
walking underneath bicy-
cles hanging over your
head and crazy objects
and toys in every direc-
tion.11 Reed Hastings,
CEO of Netflix, doesn’t
even have an office! Hast-
ings simply walks around
meeting with people.
When he needs a quiet
space to think he heads to his “watchtower”—a room-sized glass square on the top of Netflix’s
main building.12 That being said, most offices don’t look like that. While admitting that spaces
across the country are becoming more “open” on average, Jonathan Webb, head of sales at KI, a
Wisconsin–based commercial furniture maker, says that “Not everyplace looks like Google, not
everybody has a slide in the lobby.”13
Language reflects the jargon, slang, and slogans used within the walls of an organization. Do
you know what a CTR, CPC, or Crawler is? Chances are you don’t. If you worked for Yahoo, how-
ever, those terms would be second nature to you: CTR stands for click-through rate, CPC stands
for cost-per-click, and a Crawler is a computer program that gathers information from other web-
sites. If you worked at Microsoft and got an e-mail from a software developer telling you that they
were “licking the cookie,” what would you think? For Microsoft employees, “licking the cookie”
means that a person or group is announcing that they are working on a feature or product and it
is now off-limits for others to work on.14 Home Depot maintains a “stack it high and watch it fly”
slogan, which reflects its approach to sales. Yum Brands Inc., which owns Pizza Hut, Taco Bell,
KFC, and other fast-food restaurants, expects employees to be “customer maniacs”15—language
that conveys its culture for customer interaction.
Stories consist of anecdotes, accounts, legends, and myths that are passed down from cohort
to cohort within an organization. Telling stories can be a major mechanism through which lead-
ers and employees describe what the company values or finds important. For example, Howard
Schultz, CEO of Starbucks, tells the story of how (to improve quality) he forbade the common
practice of resteaming milk. What this rule inadvertently created was the loss of millions of dol-
lars of milk, as thousands of gallons of lukewarm liquid were poured down the drain. One of his
store managers came up with a simple, brilliant suggestion: Put etched lines inside the steam-
ing pitchers so baristas would know how much milk to pour for the drink size they were mak-
ing, instead of just guessing.16 Paul Wiles, president/CEO of Novant Health in Winston-Salem,
North Carolina, believes strongly in the power of storytelling to foster culture; he claims, “Talk
about numbers, and people’s eyes glaze over; talk about one child who died unnecessarily, and no
one can walk away from that.”17 Recent research finds that telling newcomers stories of low-level
employees upholding the values of the firm as opposed to high-level employees is more effective at
transmitting culture and affecting their behavior.18
Rituals are the daily or weekly planned routines that occur in an organization. Employees at
New Belgium Brewing in Colorado, home of Fat Tire Ale, can enjoy a beer in the tasting room
after their shift as well as get one free twelve-pack a week, conveying the importance of both
employees and the company’s product.19 At UPS, every driver and package handler attends a man-
datory “three-minute meeting” with their managers to help with communication. The 180-second
The ability to set up your
own work space, as at
the design firm IDEO, is
a hallmark of an open
corporate culture. Would
this environment suit your
working style?
Courtesy of Ideo
Final PDF to printer
513C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 513 10/17/17 11:44 AM
time limit helps enforce the importance of punctuality in the UPS culture. The Men’s Wearhouse
pays managers quarterly bonuses when theft (referred to as “shrink”) is kept low. That ritual
sends a message that “when workers steal from you, they are stealing from themselves and their
colleagues.”20 At Davita, the Denver-based kidney dialysis company, CEO Kent Thiry says, “We
do songs. We do chants. We do call and response. Many kinds of organizations in all cultures use
these methods. Why? For positive energy. Some of our new executives say, ‘That’s really dumb’ or
‘That’s really cheesy.’ And two years later, they’re leading it.” At M5 networks, a New York–based
seller of VoIP phone systems, over a third of the employees learn to play musical instruments in a
rock band on company time. Dan Hoffman, CEO, says, “As adults, we tend to forget how to learn.
The idea with the rock band program was to remind people how to learn.”21
Ceremonies are formal events, generally performed in front of an audience of organizational
members. At Care.com, all workers are forced to move desks every year at the same time. CEO
Sheila Marcelo assigns the seats. She says, “People don’t have a choice where they sit. Part of
the reason was to embrace change, to remove turfiness so that you’re not just chatting with your
friends and sitting with your friends. You sit with somebody else from a different team so you get
to know their job. What are they doing? What are they saying on the phone? How do they tick?
And it’s getting to know different people so that we build a really big team. And we do that every
year. And it’s now actually become an exciting thing that people embrace.”22 At San Francisco–
based Twitter, CEO Dick Costolo assembles the entire company twice a month in an area near
their cafeteria for “tea time,” which is a meeting to update employees on what’s going on and to
answer questions.23 Other types of ceremonies revolve around celebrations for meeting quality
goals, reaching a certain level of profitability, or launching a new product.
ESPOUSED VALUES Espoused values are the beliefs, philosophies, and norms that a company
explicitly states. Espoused values can range from published documents, such as a company’s
vision or mission statement, to verbal statements made to employees by executives and managers.
Examples of some of Whole Foods Market’s outward representations of espoused values can be
found in Table 16-1. What does each of these statements tell you about Whole Foods and what it
cares about?
It’s certainly important to draw a distinction between espoused values and enacted values. It’s
one thing for a company to outwardly say something is important; it’s another thing for employees
TABLE 16-1 The Espoused Values of Whole Foods
Below is a list of the seven core values that Whole Foods believes lay the foundation for its
organizational culture. The company believes that these values set it apart from competing
organizations, show others why Whole Foods is a great place to work, and will always be the
reasons for the company’s existence regardless of how large it grows. More details about each
value can be found on the company’s website.
1. Selling the highest-quality natural and organic products available.
2. Satisfying and delighting our customers.
3. Supporting team member happiness and excellence.
4. Creating wealth through profits and growth.
5. Caring about our communities and our environment.
6. Creating ongoing win–win partnerships with our suppliers.
7. Promoting the health of our stakeholders through healthy-eating education.
Source: From Whole Foods Core Values, http://www.wholefoodsmarket.com/company/corevalues.php.
Final PDF to printer
514 C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 514 10/17/17 11:44 AM
to consistently act in ways that support those espoused values. When a company holds to its
espoused values over time and regardless of the situations it operates in, the values become more
believable both to employees and outsiders. However, in times of economic downturns, staying
true to espoused values isn’t always easy. Marriott International struggles during economic down-
turns, like many of its competitors in the lodging/travel business. It has been very tempting for the
company to do everything it can to slash expenses, but its espoused value of always treating its
people right prevents cuts that would harm employee benefits. If you ask any Marriott employee
what the guiding principle of the company is all will say some version of J.W. Marriott’s founding
philosophy, “Take care of the associates, the associates will take care of the guests, and the guests
will come back again and again.”24 It is worth noting that not all companies are open in regards to
their values. Trader Joe’s, the Monrovia, California–based grocery chain, is known by its patrons
as perhaps the coolest, local product-seeking, customer-oriented business in America. In opposi-
tion to Whole Foods, it is also perhaps one of the most secretive companies in the world when it
comes to its business practices. In fact, suppliers have to sign agreements that they won’t disclose
anything having to do with their business relationship with the store before they are allowed to
supply products.25
BASIC UNDERLYING ASSUMPTIONS Basic underlying assumptions are the taken-for-granted
beliefs and philosophies that are so ingrained that employees simply act on them rather than
questioning the validity of their behavior in a given situation.26 These assumptions represent the
deepest and least observable part of a culture and may not be consciously apparent, even to orga-
nizational veterans. Edgar Schein, one of the preeminent scholars on the topic of organizational
culture, uses the example of safety in an engineering firm. He states, “In an occupation such as
engineering, it would be inconceivable to deliberately design something that is unsafe; it is a taken-
for-granted assumption that things should be safe.”27 Whatever a company’s underlying assump-
tions are, its hidden beliefs are those that are the most likely to dictate employee behavior and
affect employee attitudes. They’re also the aspects of an organizational culture that are the most
long-lasting and difficult to change.28
G E N E R A L C U LT U R E T Y P E S
If we can consider the combination of an organization’s observable artifacts, espoused values,
and underlying assumptions, we can begin to classify its culture along various dimensions. Of
course, there are many different types of organizational cultures, just like there are many different
types of personalities. Many researchers have tried to create general typologies that can be used
to describe the culture of any organization. For instance, one popular general typology divides
organizational culture along two dimensions: solidarity and sociability. Solidarity is the degree to
which group members think and act alike, and sociability represents how friendly employees are to
one another.29 Figure 16-2 shows how we might describe organizations that are either high or low
on these dimensions. Organizations that are low on both dimensions have a fragmented culture in
which employees are distant and disconnected from one another. Organizations that have cultures
in which employees think alike but aren’t friendly to one another can be considered mercenary
cultures. These types of organizations are likely to be very political, “what’s in it for me” environ-
ments. Cultures in which all employees are friendly to one another, but everyone thinks differently
and does his or her own thing, are networked cultures. Many highly creative organizations have
a networked culture. Organizations with friendly employees who all think alike are communal
cultures. There is some evidence that organizations have a tendency to move through the cul-
tures as they get larger. Small organizations generally start out as communal cultures oriented
around the owner and founder. As companies grow, they tend to move toward a networked culture
because solidarity is harder to foster when groups get really large.30 Although we like to think of
culture as being stable, it can change, as we discuss later in this chapter.
S P E C I F I C C U LT U R E T Y P E S
The typology in Figure 16-2 is general enough to be applied to almost any organization. However,
there are obviously other ways to classify an organization’s culture. In fact, many organizations
16.2
What general and specific
types can be used to
describe an organization’s
culture?
Final PDF to printer
515C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 515 10/17/17 11:44 AM
attempt to manipulate observable artifacts and espoused values to create specific cultures that
help them achieve their organizational goals. Some of these specific cultures are more relevant
in some industries than in others. Although the number of specific cultures an organization
might strive for are virtually endless, we focus on five examples: customer service cultures, safety
cultures, diversity cultures, sustainability cultures, and creativity cultures.
Many organizations try to create a customer service culture focused on service quality. After all,
80 percent of the gross domestic product in the United States is generated by service-based organi-
zations.31 Organizations that have successfully created a service culture have been shown to change
employee attitudes and behaviors toward customers.32 These changes in attitudes and behaviors
then manifest themselves in higher levels of customer satisfaction and sales.33 Figure 16-3 illustrates
the process of creating a service culture and the effects it has on company results. Numerous com-
panies claim that the sole reason for their continued existence is their ability to create a service
culture in their organization when it wasn’t originally present.34 USAA, the Texas–based provider of
financial services to military families, is an excellent example of a customer service culture and one
of Fortune’s most admired companies for five years in a row.35 As an example of the pains it goes
to in order to create that culture, USAA call center reps are required to spend close to six months
in training before actually answering the phones so that they can understand the lives of their
military customers.36 Companies might go out of their way to hire customer-oriented employees,
but research also shows that a customer service culture can lead to even more customer-oriented
behaviors on the part of their employees and a larger bottom-line profit as a result.37
FIGURE 16-2 A Typology of Organizational Culture
Source: Adapted from R. Goffee and G. Jones, The Character of a Corporation (New York: Harper Business, 1998).
Low
Sociability
High
Sociability
Low
Solidarity
High
Solidarity
Networked
Fragmented Mercenary
Communal
FIGURE 16-3 The Service Culture Process
Service-
Oriented
Leadership
Behavior
Service
Culture
Service-
Oriented
Employee
Behaviors
Customer
Satisfaction
Unit
Sales
Source: Adapted from B. Schneider, M.G. Ehrhart, D.M. Mayer, J.L. Saltz, and K. Niles-Jolly, “Understanding Organization–
Customer Links in Service Settings,” Academy of Management Journal 48 (2005), pp. 1017–32.
Final PDF to printer
516 C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 516 10/17/17 11:44 AM
In the United States, there were more than 2.9 million nonfatal workplace accidents and 3,800
fatal ones in 2015.38 It’s not uncommon for manufacturing or medical companies to go through
a string of accidents or injuries that potentially harm their employees. For these organizations,
creating a safety culture is of paramount importance. There is a clear difference between organiza-
tions in terms of the degree to which safe behaviors at work are viewed as expected and valued.39
A positive safety culture has been shown to reduce accidents and increase safety-based citizenship
behaviors.40 A safety culture also reduces treatment errors in medical settings.41 If you live in an
area of the United States where oil drilling is going on, you should be happy when you see the
names of big oil companies like Shell, ExxonMobil, Chevron, and BP. Residents in those areas
will notice a major improvement in safety as these companies, which tend to have stronger safety
cultures, buy up the small ones. When Shell bought out a small operator, the first thing it did was
shut down for two weeks and retrain the workers. A worker said, “I don’t think there’s any ques-
tion that the culture around safety has changed considerably since Shell came here.” Since XTO
Energy became a unit of ExxonMobil, its accident rate fell by half, even though drilling takes
place in the same locations with the same employees. Other companies such as Chevron are hav-
ing similar experiences.42 As with many changes, it’s very important that management’s actions
match its words. One study found that employees were highly cynical of a safety program when
they perceived a mismatch between espoused and enacted safety values by management.43 Two
recent meta-analyses provide clear evidence though that having a safety-oriented culture means
higher levels of safety performance and fewer injuries and accidents for an organization.44
There are a number of reasons an organization might want to foster a diversity culture. For the
36,463-employee Cisco Systems, having a culture of diversity might be the key to their survival—
or, at a minimum, a core advantage over their competitors. The company is addressing what is a
typical problem for many companies in the tech industry: a lack of women (only 23 percent of
Cisco employees are women). Those women they do hire don’t stick around due to the issues
they face. Cisco is starting from the top by ensuring that a good portion of their leadership team
is female. CEO Tom Chambers admits, “We’re not anywhere near where I want to be.” That
being said, Cisco has hired a vice president of inclusion and collaboration, and a several-month-
long program called JUMP is available for higher-level female employees. A lower-level employee
program is in the works.45 The Interpublic Group, a New York–based advertising giant (40,000
employees), has also been recognized for its diversity culture. Heide Gardner, chief diversity and
inclusion officer, says, “What I am learning is: Inclusion is pretty much the same everywhere.
It’s not just about making diversity counts but about making diversity count. And that holds true
wherever you are.”46 Not all diversity cultures start under good terms though. Uber is trying to
change toward a culture of diversity after a scandal of sexism and sexual harassment arose in the
public. Ariana Huffington, who is on Uber’s board of directors, is leading the charge. “There is
a real appetite to change internally. Creating a great culture will be key to the future success and,
going forward, there can be no room at Uber for brilliant jerks and zero tolerance for anything but
totally respectful behavior,” Huffington said.47
One of the newer specific cultures many firms are trying to create is a sustainability
culture. Sustainability cultures are fostered by the mission and values of many organizations. In
addition to helping the greater social good, a sustainability culture can be incredibly valuable
in recruiting top talent as the
culture resonates well with
many of today’s job applicants.
One of the firms known most
for their sustainability culture
is the California–based cloth-
ing manufacturer Patagonia,
which has become famous for
its “Black Friday” ads telling
people not to buy their clothes.
CEO Rose Marcario says, “A
lot of people talk about the
‘Don’t buy this jacket’ ad, but Source: Patagonia
Final PDF to printer
517C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 517 10/17/17 11:44 AM
what it really was saying was,
‘Don’t buy more than you
need.’” Focused on making
its products as durable as pos-
sible, the company wants its
gear handed down from gen-
eration to generation—if you
bring it back to the store, the
company will repair it. As a
private company, Patagonia
has the ability to play an activ-
ist type of role that many other
firms can’t.48 Founder Yvon
Chouinard takes culture fit
to an extreme. He has always
believed in hiring activist out-
doorspeople first and then teaching them the business skills they need to know.49 Clif Bar & Com-
pany, the organic food and drink company, puts its money where its values are. Through its “Cool
Car and Cool Home” program, the company reimburses employees up to $6,500 for a company-
approved hybrid or electric vehicle; $1,500 each year if workers bike, walk, or take public transit
to work; and $1,000 if they put solar panels on their house. Through this type of culture, Clif Bar’s
turnover sits at 3 percent, and over the last year it received more than 7,000 applications for just
114 open positions.50
Given the importance of new ideas and innovation in many industries, it’s understandable that
some organizations focus on fostering a creativity culture. Creativity cultures affect both the quan-
tity and quality of creative ideas within an organization.51 3M believes that creativity comes from
freedom and not control; workers in R&D are allowed to spend 15 percent of their time research-
ing whatever they want.52 One interesting creativity culture is that of Montreal-based Cirque du
Soleil, the largest theatrical producer in the world. Known for its incredibly unique shows and
over 30 years of highly creative performances, financial results have resulted in the company being
sold to a venture capital company. New management is trying to maintain the creativity-based
culture that is at the foundation of what many of its employees do while trying to develop its busi-
ness focus at the same time.53 SAS, the business analytics software firm based in North Carolina
(a fixture on Fortune’s 100 best companies to work for list), has a full-blown infant day care center,
a Montessori school, and an after-school program to allow employees to spend more time think-
ing about creative solutions to problems and less time worrying about their kids. SAS also surveys
its employees annually about the culture to see how the employees stand.54 To see whether you’ve
spent time working in a creativity culture, see our OB Assessments feature.
C U LT U R E ST R E N GT H
Although most organizations seem to strive for one, not all companies have a culture that creates
a sense of definite norms and appropriate behaviors for their employees. If you’ve worked for a
company and can’t identify whether it has a strong culture or not, it probably doesn’t. A high level
of culture strength exists when employees definitively agree about the way things are supposed to
happen within the organization (high consensus) and when their subsequent behaviors are consis-
tent with those expectations (high intensity).55 As shown in Figure 16-4, a strong culture serves to
unite and direct employees. Weak cultures exist when employees disagree about the way things are
supposed to be or what’s expected of them, meaning that there is nothing to unite or direct their
attitudes and actions.
Strong cultures take a long time to develop and are very difficult to change. Individuals work-
ing within strong cultures are typically very aware of it. However, this discussion brings us to an
important point: “Strong” cultures are not always “good” cultures (as evidenced by our chapter
opening example of United). Strong cultures guide employee attitudes and behaviors, but that
doesn’t always mean that they guide them toward the most successful organizational outcomes.
16.3
What makes a culture
strong, and is it always
good for an organization to
have a strong culture?
Cirque du Soleil is working
hard to maintain its creativ-
ity culture while trying to
build its business.
©Scott Barbour/Getty Images
Final PDF to printer
518 C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 518 10/17/17 11:44 AM
OB ASSESSMENTS
SCORING AND INTERPRETATION:
Innovation: Sum up items 1–5. _____
Formalization: Sum up items 6–10. _____
If your score is 22 or above for either facet, your organization or work group is high on that
particular dimension. Creative cultures tend to be high on innovation and low on formalization.
So if your score was 22 or above for innovation and 21 or below for formalization, then chances
are you’ve experienced a strong creativity culture.
Source: From Malcolm G. Patterson, Michael A. West, Viv J. Shackleton, Jeremy F. Dawson, Rebecca Lawthom, Sally
Maitlis, David L. Robinson, and Alison M. Wallace, “Validating the Organizational Climate Measure: Links to Managerial
Practices, Productivity and Innovation,” Journal of Organizational Behavior 26 (2005), pp. 379–408.
CREATIVITY CULTURE
Have you experienced a creativity culture? This assessment is designed to measure two facets
of that type of culture. Think of your current job, or the last job that you held (even if it was a
part-time or summer job). If you haven’t worked, think of a current or former student group that
developed strong norms for how tasks should be done. Answer each question using the response
scale provided. Then subtract your answers to the boldfaced questions from 6, with the difference
being your new answer for that question. For example, if your original answer for question 7 was
“4,” your new answer is “2” (6 – 4). Then sum up your scores for the two facets. (Instructors:
Assessments on culture preferences, culture strength, person–organization fit, and change cyni-
cism can be found in the PowerPoints in the Connect Library’s Instructor Resources and in the
Connect assignments for this chapter.)
1
STRONGLY DISAGREE
2
DISAGREE
3
UNCERTAIN
4
AGREE
5
STRONGLY AGREE
1. New ideas are readily accepted here. ________
2. This company is quick to respond when changes need to be made. ________
3. Management here is quick to spot the need to do things differently. ________
4. This organization is very flexible; it can quickly change procedures to
meet new conditions and solve problems as they arise.
________
5. People in this organization are always searching for new ways of
looking at problems.
________
6. It is considered extremely important here to follow the rules. ________
7. People can ignore formal procedures and rules if it helps to get the
job done.
________
8. Everything has to be done by the book. ________
9. It is not necessary to follow procedures to the letter around here. ________
10. Nobody gets too upset if people break the rules around here. ________
Final PDF to printer
519C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 519 10/17/17 11:44 AM
Executives at Wells Fargo have admitted that their culture led to a major unethical sales-practices
scandal that garnered national news and negative publicity. CEO Timothy Sloan is undertaking
a full examination of their current culture saying, “Our goal is to uncover our culture’s positive
attributes and its potential weaknesses, so our leaders can understand how best to foster an ethi-
cal, inclusive, and customer-focused culture.”56 As such, it’s useful to recognize some of the posi-
tive and negative aspects of having a strong organizational culture. Table 16-2 lists some of the
advantages and disadvantages.57 You might have noticed that all of the advantages in the left-hand
column of Table 16-2 allow the organization to become more efficient at whatever aspect of cul-
ture is strong within the organization. The right-hand column’s disadvantages all lead toward an
organization’s inability to adapt.
FIGURE 16-4 Culture Strength and Subcultures
Strong Culture Weak Culture
Di�erentiated CultureOrganizational Subcultures
TABLE 16-2 Pros and Cons of a Strong Culture
ADVANTAGES OF A STRONG CULTURE DISADVANTAGES OF A STRONG CULTURE
Differentiates the organization from
others
Makes merging with another organization
more difficult
Allows employees to identify themselves
with the organization
Attracts and retains similar kinds of employees,
thereby limiting diversity of thought
Facilitates desired behaviors among
employees
Can be “too much of a good thing” if it creates
extreme behaviors among employees
Creates stability within the organization Makes adapting to the environment more difficult
Final PDF to printer
520 C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 520 10/17/17 11:44 AM
In some cases, the culture of an organization is not really strong or weak. Instead, there might
be subcultures that unite a smaller subset of the organization’s employees. These subgroups may
be created because there is a strong leader in one area of the company that engenders different
norms and values or because different divisions in a company act independently and create their
own cultures. As shown in Figure 16-4, subcultures exist when the overall organizational culture
is supplemented by another culture governing a more specific set of employees. Subcultures are
more likely to exist in large organizations than they are in small companies.58 Most organizations
don’t mind having subcultures, as long as they don’t interfere with the values of the overall cul-
ture. In fact, subcultures can be very useful for organizations if there are certain areas of the orga-
nization that have different demands and needs for their employees.59 However, when their values
don’t match those of the larger organization, we call subcultures countercultures. Countercultures
can sometimes serve a useful purpose by challenging the values of the overall organization or
signifying the need for change.60 In extreme cases however, countercultures can split the organiza-
tion’s culture right down the middle, resulting in the differentiated culture in Figure 16-4. This is
the situation that Whataburger, an 800-location Texas-based hamburger chain, finds itself in as its
changing corporate culture is clashing with that of its largest franchisee who wants to maintain a
more familial culture.61
M A I N TA I N I N G A N O R GA N I Z AT I O N A L C U LT U R E
Clearly an organization’s culture can be described in many ways, from espoused values and under-
lying assumptions, to general dimensions such as solidarity or sociability, to more specific types
such as service cultures or safety cultures. No matter how we describe an organization’s culture,
however, that culture will be put to the test when an organization’s founders and original employ-
ees begin to recruit and hire new members. If those new members don’t fit the culture, then the
culture may become weakened or differentiated. However, two processes can conspire to help
keep cultures strong: attraction–selection–attrition and socialization.
ATTRACTION–SELECTION–ATTRITION (ASA) The ASA framework holds that potential
employees will be attracted to organizations whose cultures match their own personality, mean-
ing that some potential job applicants won’t apply due to a perceived lack of fit.62 In addition,
organizations will select candidates based on whether their personalities fit the culture, further
weeding out potential “misfits.” Finally, those people who still don’t fit will either be unhappy or
ineffective when working in the organization, which leads to attrition (i.e., voluntary or involun-
tary turnover).
Several companies can provide an example of ASA in action. FedEx has worked hard to cre-
ate a culture of ethics. The executives at FedEx believe that a strong ethical culture will attract
ethical employees who will then strengthen moral behavior at FedEx.63 Headhunters and corpo-
rate recruiters are well aware of the fact that employees who have lots of experience in certain
types of cultures (i.e., places they “fit”) will have a hard time adapting to other types of cul-
tures. One type of culture they look out for specifically is high levels of bureaucracy—recruiters
point to British Airways, General Mills, and Occidental Petroleum as prime examples of non-
risk-taking, bureaucratic cultures whose employees are rarely successful when they leave to go
somewhere else.64 Of course, attraction and selection processes don’t always align employees’
personalities with organizational culture—one reason voluntary and involuntary turnover occurs
in every organization. See this chapter’s OB on Screen for an example of how the ASA frame-
work works for one company.
SOCIALIZATION In addition to taking advantage of attraction–selection–attrition, organizations
also maintain an organizational culture by shaping and molding new employees. Starting a new
job with a company is a stressful, complex, and challenging undertaking for both employees and
organizations.65 In reality, no outsider can fully grasp or understand the culture of an organiza-
tion simply by looking at artifacts visible from outside the company. A complete understanding
of organizational culture is a process that happens over time. Socialization is the primary process
by which employees learn the social knowledge that enables them to understand and adapt to the
organization’s culture. It’s a process that begins before an employee starts work and doesn’t end
16.4
How do organizations
maintain their culture, and
how do they change it?
Final PDF to printer
521C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 521 10/17/17 11:44 AM
until an employee leaves the organization.66 What is it that an employee needs to learn and adapt
to in order to be socialized into his or her new role within an organization? Most of the impor-
tant information can be grouped into six dimensions, highlighted in Figure 16-5.67 Research
shows that each of these six dimensions is an important area in the process of socialization.
Each has unique contributions to job performance, organizational commitment, and person–
organization fit.68
Socialization happens in three relatively distinct stages. The anticipatory stage happens prior
to an employee spending even one second on the job. It starts the moment a potential employee
OB ON SCREEN
THE CIRCLE
Mae, you are a valued part of The Circle. We care about everyone you care about.
With those words, Eamon Bailey (Tom Hanks) tries to show Mae Holland (Emma Watson)
how much she is valued in The Circle (Dir: James Ponsoldt, EuropaCorp, 2017). Eamon is head,
founder, and one of the three “Wise Men” who are in charge of The Circle—a singular and power-
ful Internet company that will remind most people of Google. The movie is an excellent example
of how powerful organizational culture can be and we get to watch all aspects of how that culture
can be inculcated into employees. Mae is referred to the company by her old college roommate
Annie Allerton (Karen Gillan). We get to watch the ASA framework in action as Mae interviews
with, gets hired by, and is socialized into The Circle. Circle company headquarters lies on 400
acres of a perfectly manicured and exquisitely thought-out campus. (Those paying attention can
note how similar it looks to Apple’s new headquarters in Cupertino, CA.) Employees have access
to the best technology, gyms, parties, and even dormlike living spaces.
Of course, it wouldn’t make for a good movie if there weren’t a potential downside to all of
this. It turns out that for all the good things The Circle offers employees, there is an expectation
of transparency that goes far beyond the levels most companies are willing to go. Mae’s job perfor-
mance, life, and everything about her is made available to the company and its employees. When
she is noticed missing at several company events, she finds out that the Circle even knows about
her father having multiple sclerosis. Fortunately for Mae, the company is willing to add her par-
ents to their benefit plan. It’s worth noting in the movie how the culture at the Circle really tries
to foster all three forms of organizational commitment: affective, continuance, and normative. Of
course, there is a bigger (and ominous) picture to the company’s strategy as company slogans and
values like “Secrets are lies” and “Privacy is theft” are often repeated. During a speech, Eamon
tells a group of Circle employees, “Knowing is good, but knowing everything is better.”
©Everett Collection Inc/Ron Harvey/Alamy
Final PDF to printer
522 C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 522 10/17/17 11:44 AM
hears the name of the organization. When you see the company name Microsoft, what does it
make you think about? What are the images that come to your mind? Anticipatory socialization
begins as soon as a potential employee develops an image of what it must be like to work for a
given company. The bulk of the information acquired during this stage occurs during the recruit-
ment and selection processes that employees go through prior to joining an organization. Relevant
information includes the way employees are treated during the recruitment process, the things
that organizational insiders tell them about the organization, and any other information employ-
ees acquire about what the organization is like and what working there entails.
The encounter stage begins the day an employee starts work. There are some things about an
organization and its culture that can only be learned once a person becomes an organizational
insider. During this stage, new employees compare the information they acquired as outsiders
during the anticipatory stage with what the organization is really like now that they’re insiders.
To the degree that the information in the two stages is similar, employees will have a smoother
time adjusting to the organization. Problems occur when the two sets of information don’t quite
match. This mismatch of information is called reality shock. Reality shock is best exemplified by
the employee who says something to the effect of, “Working at this company is not nearly what I
expected it to be.” Surveys suggest that as many as one-third of new employees leave an organiza-
tion within the first 90 days as a result of unmet expectations.69 The goal of the organization’s
socialization efforts should be to minimize reality shock as much as possible. We’ll describe
some ways that organizations can do this effectively in our Application section that concludes
this chapter.
The final stage of socialization is one of understanding and adaptation. During this stage, new-
comers come to learn the content areas of socialization and internalize the norms and expected
behaviors of the organization. The important part of this stage is change on the part of the
employee. By looking back at the content areas of socialization in Figure 16-5, you can begin
to picture what a perfectly socialized employee looks like. The employee has adopted the goals
and values of the organization, understands what the organization has been through, and can
FIGURE 16-5 Dimensions Addressed in Most Socialization Efforts
Source: G.T. Chao, A.M. O’Leary-Kelly, S. Wolf, H.J. Klein, and P.D. Gardner, “Organizational Socialization: Its Content and
Consequences,” Journal of Applied Psychology, Vol. 79, 1994, pp. 730–43. 1994 by the American Psychological Association.
Goals and Values
Adoption of the spoken
and unspoken goals
and values of the
organization
Performance Proficiency
Knowledge of the roles
required and the tasks
involved in the job
People
Successful and satisfying
relationships with
organizational members
Politics
Information regarding formal
and informal work
relationships and power
structures within the
organization
Language
Knowledge of the
acronyms, slang, and
jargon that are unique
to the organization
History
Information regarding the
organization’s traditions,
customs, myths, and
rituals
Organizational
Socialization
Final PDF to printer
523C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 523 10/17/17 11:44 AM
converse with others in the organization using technical language and specific terms that only
insiders would understand. In addition, the employee enjoys and gets along with other employees
in the organization, knows whom to go to in order to make things happen, and understands and
can perform the key functions of his or her job. Talk about the perfect employee! Needless to say,
that’s quite a bit of information to gain—it’s not a process that happens overnight. Some would
say that this last stage of socialization never truly ends, as an organization’s culture continues to
change and evolve over time.70 However, organizations also know that the more quickly and effec-
tively an employee is socialized, the sooner that employee becomes a productive worker within
the organization.
It’s important to note that the length of the socialization process varies depending on the char-
acteristics of the employee, not just the company. For example, some employees might progress
more rapidly through the stages because of the knowledge they possess, their ability to recognize
cultural cues, or their adaptability to their environment. In fact, there is growing evidence that pro-
activity on the part of the employee being socialized has a significant effect on socialization out-
comes.71 Some organizations might help their employees socialize more quickly because they have
stronger cultures or cultures that are more easily understandable. The biggest difference though
is that some organizations simply work harder at socializing their employees than others. Recent
research goes as far as to suggest that we can measure how fast an employee socializes by looking
at the language he or she uses in e-mails. Employees whose e-mails use the same language as oth-
ers in the company exhibit a higher degree of cultural fit.72 For an argument about the potential
dangers of too much socialization, see this chapter’s OB at the Bookstore.
C H A N G I N G A N O R GA N I Z AT I O N A L C U LT U R E
Given all the effort it takes to create and maintain a culture, changing a culture once one has
been established is perhaps even more difficult. In fact, estimates put the rate of successful
major culture change at less than 20 percent.73 Even before she became CEO, Mary Barra, as
chief product officer at General Motors, was trying to change GM’s bureaucratic, rule-oriented
culture. Rather than talking about a Corvette, she says she’d rather talk about “driving an orga-
nization that’s customer focused.” She’s worked on this by removing layers of management and
reducing the employee policy manual by 80 percent. She even changed the dress code to “dress
appropriately” as a symbol for having employees take responsibility. When questioned by people
uncomfortable with the ambiguity she responded, “So you’re telling me I can trust you to give
you a company car and to have you responsible for tens of millions of dollars, but I can’t trust
you to dress appropriately?” The dress code wasn’t about a problem GM was dealing with,
but as Barra said, “there was a culture in the past where the rule was the rule and when you
weren’t empowered to make the decision you could all just complain about the rule.”74 In prac-
tice though, two other ways are more common methods to change a culture: changes in leader-
ship and mergers or acquisitions.
CHANGES IN LEADERSHIP There is perhaps no bigger potential driver of culture than the
leaders and top executives of organizations. Just as the founders and originators of organizations
set the tone and develop the culture of a new company, subsequent CEOs and presidents leave
their mark on the culture. Many times, leaders are expected simply to sustain the culture that has
already been created.75 At other times, leaders have to be a driving force for change as the envi-
ronment around the organization shifts. In fact, there is some recent evidence that CEOs whose
leadership styles are different from their company’s culture are more effective.76 This expectation
is one of the biggest reasons organizations change their top leadership. For example, Nortel Net-
works hired two former Cisco executives into the roles of chief operating officer and chief technol-
ogy officer. It was Nortel’s hope that these executives would help bring some of Cisco’s culture
of aggressiveness to Nortel and thus allow it to compete more effectively in the high-technology
industry environment.77 Not all such moves work out, though. Retailer JCPenney brought in for-
mer Apple retail executive Ron Johnson as CEO, who shook up the company through lots of
cultural changes including renaming the company “JCP.” Johnson was hailed as “the ideal leader
to fix JCP.” One of the CEO’s top lieutenants said, “If people are saying the culture is becoming
Final PDF to printer
524 C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 524 10/17/17 11:44 AM
OB AT THE BOOKSTORE
ORIGINALS
by Adam Grant (New York: Viking, 2016)
When we become curious about the dissatisfying defaults in our world, we begin to recognize
that most of them have social origins: Rules and systems were created by people. And that aware-
ness gives us the courage to contemplate how we can change them.
With those words, Adam Grant challenges readers to start to think
about how originality and creativity generally occur inside orga-
nizations. Grant believes that far too often organizations have a
culture that tends to suppress creativity as opposed to allowing it
to flourish. This happens primarily when everyone starts thinking
alike. Grant provides a number of examples where research goes
against what most people have a tendency to think when it comes to
nonconformity inside organizations. For instance, there is a whole
chapter essentially on why procrastination is a good thing! Grant’s
experience as a consultant for a number of companies (Disney, the
NFL, Goldman Sachs) and his own research help him to provide
easily relatable examples to the points he makes. Grant tells a story
about how he was offered the opportunity to invest in Warby Parker
before the company had even created a website. He turned it down
primarily because none of the four founders was going to run the
business full-time as they were all going to keep other full-time jobs
to hedge their bets. Grant saw that as a sign they weren’t willing to take a risk and it turned out to
be the worst investment decision of his life. As it turns out, opposite of what most people think,
research shows that successful entrepreneurs actually tend to be highly risk averse.
One of Grant’s major premises in the book is that the more familiar someone is with a
domain, the less likely they are to challenge it and be creative. Middle managers in organiza-
tions are likely to be the least creative. However, we can all train ourselves to be more original.
Grant offers readers an action list of things individuals can do to be more creative, but also
provides examples and ideas for leaders and companies to create a culture of originality within
their organizations.
©Roberts Publishing Services
much more Appley, I take that as a complement.” However, the long-term employees of the com-
pany did not take it that way. They felt like they were treated poorly, always being judged, and were
sick of the constant Apple references. Less than a year later, after dismal results and low employee
morale, Johnson was removed and the prior CEO who was familiar with the underlying JCPenney
culture took over.78
MERGERS AND ACQUISITIONS Merging two companies with two distinct cultures is a sure-
fire way to change the culture in an organization. The problem is that there is just no way to know
what the culture will look like after the merger takes place. What the new culture will resemble
is a function of both the strength of the two cultures involved in the merger and how similar
they are to each other.79 Ideally, a new culture would be created out of a compromise in which
Final PDF to printer
525C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 525 10/17/17 11:44 AM
As mentioned previously, there is perhaps no more perilous journey for a company to take than
merging with or acquiring another large firm. These problems are exacerbated when the two com-
panies are from different countries. As few as 30 percent of international mergers and acquisitions
create shareholder value. That hasn’t stopped companies from trying though, as 2015 was a record
year for global mergers and acquisitions ($4.7 trillion). 2016 was smaller due to Brexit and other
political uncertainties, but still worth over $2.5 trillion.
Hopefully, we’ve illustrated the inherent difficulties of trying to merge two different cultures
even when the organizations are in the same country. These cultural differences can be magnified
when international culture plays a role as well. Chances are good that your experiences in college
have shown you that different countries have different cultures, just like organizations. People
who come from different countries tend to view the world differently and have different sets of
values as well. For example, DaimlerChrysler bought a controlling stake in Mitsubishi Motors,
thinking that a strong alliance between the two automotive companies would result in high levels
of value for both. Unfortunately, the merger broke up for reasons that have been attributed to the
international culture differences between the two firms. The Japanese managers tended to avoid
“unpleasant truths” and stay away from major change efforts—a tendency that DaimlerChrysler
never confronted but also could not accept.
There are many stories of failed international mergers, and one of the greatest reasons for them
is that corporations fail to recognize the impact that national culture differences (in addition to
organizational culture differences) have on their ability to be successful. One such acquisition
that hasn’t fallen victim to this issue was the purchase of Volvo Car Corporation (Sweden) from
Ford by China’s Geely Holding Group. Although the relationship started out extremely rocky,
with Geely executives storming out of an initial meeting in Sweden because they felt they were
being treated like they were stupid, the two companies seem to have reached some compromises.
Volvo, somewhat against its more safe and family friendly culture, is now producing some high-
end luxury models to compete with Mercedes-Benz and BMW, which fit with Chinese desires. In
addition, although Geely wanted to build three assembly plants in China to jump-start sales, it
followed Volvo’s more slow, quality approach at the behest of Volvo’s CEO. Volvo is now thriving.
Li Shufu, founder of Geely, says of Volvo, “A tiger belongs to the wild world and not confined to
a zoo. We need to liberate this tiger.”
OB INTERNATIONALLY
Sources: Anonymous, “Global Mergers and Acquisitions,” The Economist (online), Oct 1, 2016; S. Brahy, “Six Solution
Pillars for Successful Cultural Integration of International; As,” Journal of Organizational Excellence, Autumn 2006,
pp. 53–63; M. Dunne, “Volvo’s Unlikely Comeback is Gathering Speed, Thanks to a Visionary Chinese Owner,” Forbes
(online), Feb 25, 2016; G. Edmondson, “Auf Wiedersehen, Mitsubishi,” BusinessWeek (online), November 11, 2005;
B. Bremmer, “A Tale of Two Auto Mergers,” BusinessWeek (online), April 29, 2004; M. Farrell, “2015 Becomes the Biggest
MA Year Ever,” The Wall Street Journal (online), Dec 13, 2015; and N. Shirouzu, “Volvo’s Search for Common Ground,”
The Wall Street Journal (online), June 6, 2011.
the best of both companies is represented by the new culture. There are many stories that have
arisen from the mergers of companies with very different cultures: AOL/Time Warner, Exxon/
Mobil, HP/Compaq, and RJR/Nabisco, to name a few. Unfortunately, very few of these stories
are good ones. Mergers rarely result in the strong culture that managers hope will appear when
they make the decision to merge. In fact, most merged companies operate under a differentiated
culture for an extended period of time. Some of them never really adopt a new identity, and when
they do, many of them are seen as failures by the outside world. This perception is especially true
Final PDF to printer
526 C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 526 10/17/17 11:44 AM
in global mergers, in which each of the companies
not only has a different organizational culture but
is from a different country as well, as our OB Inter-
nationally box details. Every now and then though,
a merger happens in which the leadership focuses
on culture from the start. This was the case with the
merger of Delta and Northwest Airlines (this chap-
ter’s opening example). Rather than risk creating a
fragmented culture, then-Delta CEO Richard Ander-
son went to the extreme of changing the ID numbers
on every employee’s security badge so that employees
could not tell whether a colleague started with Delta
or Northwest. According to Anderson, he wanted to avoid a situation in which “employees were
constantly sizing up which side you were on.”80
Merging two different cultures has major effects on the attitudes and behaviors of organi-
zational employees. Companies merge for many different strategic reasons, and though many
managers and executives may realize its importance, whether the cultures will match is rarely
the deciding criterion.81 Slightly less troublesome but still a major hurdle to overcome are acqui-
sitions. In most instances, the company doing the acquiring has a dominant culture to which
the other is expected to adapt. A more recent example is the acquisition of Anheuser-Busch
by the Belgian-based firm InBev. InBev and its CEO Carlos Brito are known for their heavy-
handed, cost-cutting ways; Anheuser-Busch is known for its free-spending atmosphere in which
employees get free admission to the company’s theme parks and two cases of free beer each
month. One industry analyst joked that the Budweiser Clydesdales get better treatment than the
average InBev employee.82 Another example comes from the acquisition of Mail Boxes Etc. by
UPS. Strategically, the acquisition had many advantages that supposedly would allow UPS to
compete better with FedEx and the U.S. Postal Service. However, the culture clash between the
efficiency and rigidness of UPS and the entrepreneurial spirit of Mail Boxes Etc. franchisees
has caused UPS some major headaches.83 We’ve noted how difficult it is to get just one person
to adapt to an established culture through the socialization process. Can you imagine how dif-
ficult it is to change an entire organization, all at one time?
One of the major reasons that one company purchases another is simply to acquire the technol-
ogy that it has. In such cases, the acquired company usually is expected to change to fit the buyer’s
culture. However, a new approach that has been used by several companies, including Hewlett-
Packard and Yahoo, is to buy companies with the intention of infusing their different culture into
their own.84 Clorox, the Oakland, California–based consumer products manufacturer, acquired
Massachusetts-based personal care product maker Burt’s Bees with the full knowledge of the com-
pany’s environmentally friendly and socially responsible culture, which Clorox hoped would help
in its quest to be more environmentally focused as well.85 Although this process of “innovation
via absorption” looks good on paper, it’s very difficult, and companies need to think twice about
changing the fundamental cultures they have built.
S U M M A RY: W H Y D O S O M E O R GA N I Z AT I O N S H AV E
D I F F E R E N T C U LT U R E S T H A N OT H E R S ?
So why do some organizations have different cultures than others? As shown in Figure 16-6,
attraction–selection–attrition processes, socialization, changes in leadership, and mergers and
acquisitions shape the three components of organizational culture: basic underlying assumptions,
espoused values, and observable artifacts. Specific combinations of those culture components
then give rise to both general and specific culture types. For example, cultures can be categorized
on the basis of solidarity and sociability into fragmented, mercenary, communal, and networked
types. Cultures can also be categorized into more specific types, such as customer service, safety,
diversity, and creativity. Finally, those general and specific types can be further classified accord-
ing to the strength of the culture. Taken together, these processes explain “what it’s like” within
the hallways of a given organization.
Clorox acquired Burt’s
Bees in the hopes of using
the company’s environ-
mentally friendly culture to
accentuate its own.
©Bloomberg/Jb Reed/Getty Images
Final PDF to printer
527C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 527 10/17/17 11:44 AM
FIGURE 16-6 Why Do Some Organizations Have Different Cultures Than Others?
Attraction/
Selection/
Attrition
Socialization
Changes in
Leadership
Mergers and
Acquisitions
CULTURE COMPONENTS
General Culture Types
• Fragmented
• Mercenary
• Communal
• Networked
Specific Culture Types
• Customer service
• Safety
• Diversity
• Sustainability
• Creativity
Culture Strength
WEAK STRONG
Observable
Artifacts
Espoused
Values
Basic
Underlying
Assumptions
H O W I M P O R TA N T I S O R G A N I Z AT I O N A L C U LT U R E ?
Normally, this section is where we summarize the importance of organizational culture by
describing how it affects job performance and organizational commitment—the two outcomes
in our integrative model of OB. However (similar to organizational structure in Chapter 15),
it’s difficult to summarize the importance of culture in this way because there are so many
Final PDF to printer
528 C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 528 10/17/17 11:44 AM
different types and dimensions of the concept. Although there has been some support for
distinct culture types having an effect on employee attitudes,86 high solidarity cultures, high
sociability cultures, diversity cultures, creativity cultures, and so forth all have different effects
on performance and commitment—effects that likely vary across different types of organiza-
tions and industries.
Regardless of the type of culture we’re talking about, however, one concept remains impor-
tant for any employee in any business: fit. Think for a moment about working for an orga-
nization whose culture doesn’t match your own values. Maybe you work for an organization
that produces a product that you don’t believe in or that might be harmful to others, such as
Philip Morris, Budweiser, or Harrah’s casinos. Maybe your employer is an organization that
expects you to perform questionable behaviors from an ethical standpoint or produces a prod-
uct that’s of poor quality. Facebook, Salesforce, and AirBNB are all organizations that publicize
their belief in promoting social values in addition to (and sometimes above) making money.87
Person–organization fit is the degree to which a person’s personality and values match
the culture of an organization. Employees judge fit by thinking about the values they prioritize
the most, then judging whether the organization shares those values. Table 16-3 provides a set
of values that many people have used to judge fit. Which of these values would you say are the
most important to you?
Two meta-analyses illustrate the importance of person–organization fit to employees.88
When employees feel that their values and personality match those of the organization, they
experience higher levels of job satisfaction and feel less stress about their day-to-day tasks. They
also feel higher levels of trust toward their managers. Taken together, those results illustrate why
person–organization fit is so highly correlated with organizational commitment, one of the two
outcomes in our integrative model of OB (see Figure 16-7). When employees feel they fit with
their organization’s culture, they’re much more likely to develop an emotional attachment to
the company. The effects of fit on job performance are weaker, however. In general, person–
organization fit is more related to citizenship behaviors than to task performance. Employees
who sense a good fit are therefore more likely to help their colleagues and “go the extra mile”
to benefit the company.
16.5
What is person–
organization fit and how
does it affect job perfor-
mance and organizational
commitment?
TABLE 16-3 Values Used to Judge Fit with a Culture
Flexible Efficient
Risk taking Predictable
Innovation Opportunistic
Customer oriented Detailed
Supportive Informal
Ethical Free thinking
Diverse Optimistic
Team-based Compassionate
Competitive Learning oriented
For a more detailed list of values used in research, see: C.A. O’Reilly, J.A. Chatman, and D.F. Caldwell, “People and
Organizational Culture: A Profile Comparison Approach to Assessing Person–Organization Fit,” Academy of Manage-
ment Journal, Vol. 34, 1991, pp. 487–516.
Final PDF to printer
529C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 529 10/17/17 11:44 AM
A P P L I C AT I O N : M A N AG I N G S O C I A L I Z AT I O N
Most organizations recognize the importance of having employees adapt to the culture of their
organization quickly. Luckily, there are a number of actions that organizations can take to help
their employees adapt from the first day they walk in the door. Table 16-4 highlights some of the
different tactics organizations can use when socializing their employees. Note that companies can
take two very different approaches to the socialization process. The left-hand column represents a
view of socialization in which the goal of the process is to have newcomers adapt to the organiza-
tion’s culture. This view assumes that the organization has a strong culture and definite norms and
values that it wants employees to adopt, which is not always the case. Some organizations don’t
have a strong culture that they want employees to adapt to, or they might be trying to change their
culture and want new employees to come in and “shake things up.” The socialization tactics listed
in the right-hand column of Table 16-4 might be more appropriate in such circumstances. In addi-
tion to the socialization tactics listed in the table, there are three other major ways in which orga-
nizations routinely and effectively help speed up the socialization process of newcomers: realistic
job previews, orientation programs, and mentoring.
REALISTIC JOB PREVIEWS One of the most inexpensive and effective ways of reducing early
turnover among new employees is through the use of realistic job previews.89 Realistic job previews
(RJPs) occur during the anticipatory stage of socialization during the recruitment process. They
16.6
What steps can organiza-
tions take to make sure that
newcomers will fit with their
culture?
FIGURE 16-7 Effects of Person–Organization Fit on Performance and Commitment
Sources: W. Arthur Jr., S.T. Bell, A.J. Villado, and D. Doverspike, “The Use of Person–Organization Fit in Employment-
Related Decision Making: An Assessment of Its Criterion-Related Validity,” Journal of Applied Psychology 91 (2007),
pp. 786–801; and A.L. Kristof-Brown, R.D. Zimmerman, and E.C. Johnson, “Consequences of Individuals’ Fit at Work:
A Meta-Analysis of Person–Job, Person–Organization, Person–Group, and Person–Supervisor Fit,” Personnel Psychology
58 (2005), pp. 281–342.
Person–Organization Fit has a weak positive e�ect on Performance. Employees who
fit with their organization tend to have slightly higher levels of Task Performance, with
e�ects on Citizenship Behavior slightly stronger. Not much is known about the impact of
fit on Counterproductive Behavior.
Person–Organization Fit has a strong positive e�ect on Commitment.
Employees who fit with their organization tend to have higher levels of A�ective
Commitment. Not much is known about the impact of fit on Continuance or Normative
Commitment.
Person–
Organization
Fit
Job
Performance
Organizational
Commitment
Person–
Organization
Fit
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
Final PDF to printer
530 C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 530 10/17/17 11:44 AM
involve making sure a potential employee has an accurate picture of what working for an organi-
zation is going to be like by highlighting both the positive and the negative aspects of the job.90
Although RJPs almost always occur prior to hiring, Cisco Systems has a unique program called
“Cisco Choice” in which its 2,500 new hires a year interview and hear presentations from manag-
ers in more than 30 business units after they are hired. The new hires then get to choose where in
the company they want to work. Cisco feels that by allowing new hires to pick jobs based on their
interest and skills, they are likely to work harder and stay with the company. It also lessens reality
shock and shortens the encounter stage that normally accompanies initial employment. James
Revis, after going through Cisco Choice as a new hire, sees benefits even beyond his choice of
where to work, “Normally [new employees] just know what their department does and what their
specific product is. When we collaborate, I already know what the other department does.” Given
Cisco’s astounding 98 percent two-year retention rate, it’s hard to argue with the company.91
ORIENTATION PROGRAMS One effective way to start the socialization process is by having
new employees attend some form of newcomer orientation session. Apparently most organizations
agree, given that 64–93 percent of all organizations use some form of orientation training pro-
cess.92 Not all orientation programs are alike however, and different types of orientation training
can be more effective than others.93 Orientation programs have been shown to be effective trans-
mitters of socialization content, such that those employees who complete orientation have higher
levels of satisfaction, commitment, and performance than those who don’t.94 Airbnb’s CEO Brian
Chesky believes that setting the culture is one of his top priorities, and he welcomes new hires
each week during orientation where he encourages them to be “crazy” and tells them that they
are there to “design the future world we want to live in.” Chesky once wrote to employees, “If you
break the culture, you break the machine that creates your products.”95 Jet Blue CEO Dave Barger
also believes strongly in these sessions and shows it by having been to more than 250 of them over
the last decade. Barger tells his new hires, “The hard product—airplanes, leather seats, satellite
TVs, bricks and mortar—as long as you have a checkbook, they can be replicated. It’s the culture
that can’t be replicated. It’s how we treat each other. Do we trust each other? Can we push back
on each other? The human side of the equation is the most important part of what we’re doing.”96
TABLE 16-4 Tactics Organizations Use to Socialize New Employees
TACTICS DESIGNED TO
ENCOURAGE ADAPTATION TO
THE ORGANIZATION’S CULTURE
TACTICS DESIGNED TO
DISCOURAGE ADAPTATION TO THE
ORGANIZATION’S CULTURE
Orient new employees along with a group of
other new employees.
Orient new employees by themselves.
Put newcomers through orientation apart
from current organizational members.
Allow newcomers to interact with current
employees while they are being oriented.
Provide hurdles that are required to be met
prior to organizational membership.
Allow organizational membership regardless
of whether any specific requirements have
been met.
Provide role models for newcomers. Use no examples of what an employee is sup-
posed to be like.
Constantly remind newcomers that they are
now part of a group and that this new group
helps define who they are.
Constantly affirm to newcomers that they are
to be themselves and that they were chosen
for the organization based on who they are.
Sources: Adapted from G.R. Jones, “Socialization Tactics, Self-Efficacy, and Newcomers’ Adjustments to Organizations,”
Academy of Management Journal 29 (1986), pp. 262–79; and J. Van Maanen and E.H. Schein, “Toward a Theory of Orga-
nizational Socialization,” Research in Organizational Behavior 1 (1979), pp. 209–64.
Final PDF to printer
531C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 531 10/17/17 11:44 AM
MENTORING One of the most popular pieces of advice given to college students as they begin
their careers is that they need to find a mentor or coach within their organization.97 Mentoring
is a process by which a junior-level employee (protégé) develops a deep and long-lasting relation-
ship with a more senior-level employee (mentor) within the organization. The mentor can provide
social knowledge, resources, and psychological support to the protégé both at the beginning of
employment and as the protégé continues his or her career with the company. Mentoring has
always existed in companies on an informal basis. However, as organizations continue to learn
about the strong benefits of these relationships, they’re more frequently instituting mentoring
programs that formally match newcomers with mentors.98 In fact, nearly 76 percent of companies
use mentoring in order to develop skills.99 Formal programs allow the company to provide consis-
tent information, train mentors, and ensure that all newcomers have the opportunity to develop
one of these fruitful relationships. Morgan Stanley started its program by having leaders develop
a curriculum for what makes employees successful within the firm and then paired mentors and
protégés who were expected to cover specific material.100 McGraw-Hill Education paired mentors
and protégés based on what the protégé’s goals were and who could best help them achieve those
goals.101 Similarly, J.P. Morgan Chase & Co. has created a project named Pathfinder where new
employees recruited from the military are paired with experienced veterans to mentor them on
areas unique to their transition to civilian life.102 Another unique program is that of the notori-
ously private company, Mars, Inc., the Virginia–based candy maker where employees are fondly
referred to as “Martians.” Although many employees get assigned a traditional mentor, the organi-
zation has a reverse-mentoring program for its executives where younger workers are assigned to
bring them up to speed on social media.103
16.1 Organizational culture is the shared social knowledge within an organization regarding
the rules, norms, and values that shape the attitudes and behaviors of its employees. There
are three components of organizational culture: observable artifacts, espoused values, and
basic underlying assumptions. Observable artifacts include symbols, physical structures,
language, stories, rituals, and ceremonies.
16.2 An organization’s culture can be described on dimensions such as solidarity and sociabil-
ity to create four general culture types: networked, communal, fragmented, and mercenary.
Organizations often strive to create a more specific cultural emphasis, as in customer
service cultures, safety cultures, diversity cultures, and creativity cultures.
16.3 Strong cultures have the ability to influence employee behaviors and attitudes. Strong
cultures exist when employees agree on the way things are supposed to happen and their
behaviors are consistent with those expectations. Strong cultures are not necessarily good
or bad. Generally, a culture’s effectiveness depends on how well it matches the company’s
outside environment. To this degree, adaptive cultures can be very useful.
16.4 Organizations maintain their cultures through attraction, selection, and attrition processes
and socialization practices. Organizations change their cultures by changing their leader-
ship or through mergers and acquisitions.
16.5 Person–organization fit is the degree to which a person’s values and personality match
the culture of the organization. Person–organization fit has a weak positive effect on job
performance and a strong positive effect on organizational commitment.
16.6 There are a number of practices organizations can utilize to improve the socialization of
new employees, including realistic job previews, orientation programs, and mentoring.
TA K E AWAY S
Final PDF to printer
532 C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 532 10/17/17 11:44 AM
K E Y T E R M S
• Organizational culture p. 510
• Observable artifacts p. 511
• Symbols p. 511
• Physical structures p. 511
• Language p. 512
• Stories p. 512
• Rituals p. 512
• Ceremonies p. 513
• Espoused values p. 513
• Basic underlying assumptions p. 514
• Fragmented cultures p. 514
• Mercenary cultures p. 514
• Networked cultures p. 514
• Communal cultures p. 514
• Customer service culture p. 515
• Safety culture p. 516
• Diversity culture p. 516
• Sustainability p. 516
• Creativity culture p. 517
• Culture strength p. 517
• Subcultures p. 520
• Countercultures p. 520
• ASA framework p. 520
• Socialization p. 520
• Anticipatory stage p. 521
• Encounter stage p. 522
• Reality shock p. 522
• Understanding and adaptation p. 522
• Person–organization fit p. 528
• Realistic job previews p. 529
• Newcomer orientation p. 530
• Mentoring p. 531
16.1 Have you or a family member worked for an organization that you would consider to have
a strong culture? If so, what made the culture strong? Did you or they enjoy working there?
What do you think led to that conclusion?
16.2 Is it possible for an employee to have personal values that are inconsistent with the values
of the organization? If so, how is this inconsistency likely to affect the employee’s behavior
and attitudes while at work?
16.3 How can two companies with very different cultures that operate in the same industry
both be successful? Shouldn’t one company’s culture automatically be a better fit for the
environment?
16.4 When you think of the U.S. Postal Service’s culture, what kinds of words come to mind?
Where do these impressions come from? Do you think your impressions are accurate?
What has the potential to make them inaccurate?
16.5 Think about the last job you started. What are some unique things that companies might
do to reduce the amount of reality shock that new employees encounter? Are these meth-
ods likely to be expensive?
D I S C U S S I O N Q U E S T I O N S
Although all airlines have an incredibly long list of policies and rules they have to follow in order
to be consistent and to guarantee passenger safety and security, two examples show that there
can be a great deal of latitude in how employees approach unique and novel situations. On April
9, 2017, a video of United Flight 3411’s passenger Dr. David Dao went viral. The video showed
Dr. Dao being forcibly removed from the airplane by Chicago airport officers after he refused
to leave his seat after the airline had overbooked the flight and needed to sit some of its own
employees on the plane. Dr. Dao ended up with a broken nose and two missing teeth. United
C A S E : D E LTA / U N I T E D
Final PDF to printer
533C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 533 10/17/17 11:44 AM
ended up with a public relations nightmare, a drop in its stock price, petitions to boycott the air-
line, and calls for the CEO to resign. Dr. Dao settled with the company for damages, but United
is still feeling the impact of what many say were culture-based decisions to this day.
According to insiders and ex-employees, United had developed an efficiency culture to where
employees were expected to “follow manuals” and were hesitant to do anything that wasn’t
strictly according to written guidelines. On the day in question, once United gate agents had
no takers for their offer of $800 and a hotel voucher, the agents (following the rules) used a
computer program to identify the passengers of “least value” to the airline. Once Dr. Dao was
identified and refused to de-plane, the agents (following the rules) called for airport security. The
airline was vilified on social media for not coming up with other options. United CEO Oscar
Munoz called the event a “system failure” and that United hadn’t given employees “the proper
tools, policies, and procedures that allow them to use their common sense.”
In contrast, six months prior to that United episode, a computer outage caused all of Delta’s
flights to be grounded for an entire day. (Delta was forced to cancel about 1,000 flights on the day
of the outage and another 1,000 over the next two days.) Delta employees recall the event being a
horrible experience for themselves and all the passengers involved. CEO Ed Bastian credits Delta’s
culture for saving the day. Stories of Delta employees’ empathy with passengers and consistent
showing of positive emotions seemed to go a long way with customers, some of whom even
expressed support in various ways to Delta employees during the outage. Although most expected
a decline, Delta’s monthly customer satisfaction scores actually went up following the incident.
16.1 Why is an organization’s culture perhaps the most evident during crisis situations?
16.2 What causes companies like Delta and United to become so different in regard to organiza-
tional culture?
16.3 What will it take for United to overcome its culture that has been built up over such a long
period of time?
Sources: E. Bastian. “What I’ve Learned in My First Days as Delta’s New CEO,” linkedin.com, May 26, 2016: https://www
.linkedin.com/pulse/what-ive-learned-my-first-days-deltas-new-ceo-ed-bastian; D. Bennett. “The United Way,” Boomberg
Businessweek, January 18, 2016, pp. 50–55; S. Carey. “Behind United Airlines’ Fateful Decision to Call Police,” The
Wall Street Journal, April 16, 2017: https://www.wsj.com/articles/behind-united-airlines-fateful-decision-to-call-police-
1492384610; A. Hartung. “Why United Airlines Abuses Customers: The Risks of Operational Excellence,” forbes.com,
April 10, 2017: https://www.forbes.com/sites/adamhartung/2017/04/10/why-united-airlines-abuses-customers-the-risks-
of-operational-excellence/#78b1a38fbb10; J. Ostrower. “United CEO Oscar Munoz Is Walking a Tightrope to Fix an
Airline,” cnn.com, April 18, 2017: http://money.cnn.com/2017/04/18/news/companies/united-oscar-munoz-employees/;
and J. Roberts. “Delta,” Fortune, March 15, 2017, pp. 106–9.
E X E R C I S E : U N I V E R S I T Y C U LT U R E
The purpose of this exercise is to explore how organizational culture is transmitted through
observable artifacts. This exercise uses groups, so your instructor will either assign you to a
group or ask you to create your own group. The exercise has the following steps:
16.1 Using the following table, consider the observable artifacts that transmit the organizational
culture of your university.
16.2 Consider the sorts of values listed in Table 16-3. If you consider the symbols, physical struc-
tures, language, stories, rituals, and ceremonies identified in step 1, what core values seem to
summarize your university’s culture? Using a transparency, laptop, or board, list the one value
that seems to be most central to your university’s culture. Then list the three cultural artifacts
that are most responsible for transmitting that core value. Present your results to the class.
16.3 Class discussion (whether in groups or as a class) should center on the following topics: Do
you like how your university’s culture is viewed, as represented in the group presentations?
Why or why not? If you wanted to change the university’s culture to represent other sorts of
values, what process would you use?
Final PDF to printer
534 C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 534 10/17/17 11:44 AM
16.1 Verbeke, W.; M.
Volgering; and M.
Hessels. “Exploring
the Conceptual
Expansion within the
Field of Organiza-
tional Behavior: Orga-
nizational Climate
and Organizational
Culture.” Journal of
Management Studies
35 (1998),
pp. 303–29.
16.2 Source: Deal, T.E.,
and A.A. Kennedy,
Corporate Cultures:
The Rites and
Rituals of Corporate
Life. Reading, MA:
Addison-Wesley, 1982.
16.3 Schneider, B., V.
González-Romá,
C. Ostrof, and M.
West. “Organiza-
tional Climate and
Culture: Reflections
on the History of
the Constructs
in the Journal of
Applied Psychology.”
Journal of Applied
Psychology 102 (2017),
pp. 468–82.
16.4 Adapted from
O’Reilly, C.A., III; J.
Chatman; and D.L.
Caldwell. “People and
Organizational Cul-
ture: A Profile Com-
parison Approach to
Assessing Person–
Organization Fit.”
Academy of Manage-
ment Journal 34
(1991), pp. 487–516;
and Tsui, A.S.; Z.
Zhang; W. Hui; K.R.
Xin; and J.B. Wu.
“Unpacking the Rela-
tionship between CEO
Leadership Behavior
and Organizational
Culture.” The Leader-
ship Quarterly 17
(2006), pp. 113–37.
16.5 O’Reilly, C.A., and
J.A. Chatman. “Cul-
ture as Social Control:
Corporations, Cults,
and Commitment.” In
Research in Organiza-
tional Behavior, Vol.
18, ed. B.M. Staw and
L.L. Cummings. Stam-
ford, CT: JAI Press,
1996, pp. 157–200.
16.6 Chatman, J.A.
“Matching People and
Organizations: Selec-
tion and Socialization
in Public Accounting
Firms.” Administrative
Science Quarterly 36
(1991), pp. 459–84.
16.7 Source: Colvin, G.
“Q1A: Whole Foods’
Other CEO on Organic
Growth.” Fortune, May
20, 2013, pp. 128–32.
16.8 Trice, H.M., and J.M.
Beyer. The Cultures of
Work Organizations.
Englewood Cliffs, NJ:
Prentice Hall, 1993.
16.9 Rowley, I. “What Put
Honda in the Passing
Lane.” BusinessWeek,
October 19, 2009,
pp. 57–58.
16.10 Source: Nicolas, S.
“The Way We Do
E N D N OT E S
Symbols Think about the logo and images associated with your university. What
message do they convey about the university’s culture?
Physical structures Think about the most visible physical structures on campus. What do
those structures say about your university’s culture?
Language Think about the jargon, slang, slogans, and sayings associated with
your university. What insights do they offer into the university’s culture?
Stories What anecdotes, accounts, legends, and myths are associated with
your university? What messages do they convey about your university’s
culture?
Rituals What are the daily or weekly routines that occur at your university, and
what do they say about the culture?
Ceremonies What are the formal events and celebrations that occur at your univer-
sity, and what cultural signals do they convey?
Final PDF to printer
535C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 535 10/17/17 11:44 AM
Things Around Here.”
Director, March 2011,
pp. 56–59.
16.11 Hempel, J. “Bring-
ing Design to Blue
Chips.” Fortune,
November 12, 2007,
p. 32; and Stibbe, M.
“Mothers of Inven-
tion.” Director 55
(2002), pp. 64–68.
16.12 Vance, A. “Netflix,
Reed Hastings
Survives Missteps to
Join Silicon Valley’s
Elite.” Bloomberg
Businessweek, May 9,
2013, http://www
.businessweek.com/
articles/2013-05-09/
netflix-reed-hastings-
survive-missteps-to-
join-silicon-valleys-elite.
16.13 Source: 12 Kesling, B.
“Say Goodbye to the
Office Cubicle.” The
Wall Street Journal,
April 3, 2013, p. B1.
16.14 Rivlin, G. “The Prob-
lem with Microsoft.”
Fortune, April 11,
2011, pp. 45–51.
16.15 Shuit, D.P. “Yum Does
a 360.” Workforce Man-
agement, April 2005,
pp. 59–60.
16.16 Berfield, S. “Howard
Schultz versus
Howard Schultz.”
BusinessWeek, August
17, 2009, pp. 28–33.
16.17 Source: Birk, S.
“Creating a Culture
of Safety: Why CEO’s
Hold the Key to
Improved Outcomes.”
Healthcare Executive,
March/April 2009,
pp. 15–22.
16.18 Martin, S. “Stories
About Values and
Valuable Stories: A
Field Experiment
of The Power of
Narratives to Shape
Newcomers’ Actions.”
Academy of Manage-
ment Journal 59
(2016), pp. 1707–24.
16.19 Bailey, S. “Benefits
on Tap.” Bloomberg
Businessweek, March
21, 2011, p. 1.
16.20 Source: Kaihla, P.
“Best Kept Secrets
of the World’s Best
Companies.” Business
2.0 (2006), pp. 82-87.
16.21 Source: Wehrum, K.
“Hello Conference
Room A!: An Office
Where Employees
Rock,” Inc. 32 (2010),
pp. 115-16
16.22 Source: Bryant, A.
The Corner Office.
Indispensable and Unex-
pected Lessons from
CEOs on How to Lead
and Succeed. New York:
Times Books, 2011.
16.23 Lev-Ram, M. “Wel-
come to the Twitter-
loin.” Fortune, March
15, 2015, pp. 120–22.
16.24 Source: Gallagher, L.
“Why Employees Love
Marriott.” Fortune,
March 15, 2015,
pp. 112-18.
16.25 Kowitt, B. “Inside
Trader Joe’s.” Fortune,
September 6, 2010,
pp. 86–96.
16.26 Schein, E.H. “Orga-
nizational Culture.”
American Psychologist
45 (1990), pp. 109–19.
16.27 Source: Schein, E.H.
Organizational Culture
and Leadership. San
Francisco: Jossey-
Bass, 2004.
16.28 Schein, E.H. “What Is
Culture?” In Refram-
ing Organizational
Culture, ed. P.J. Frost,
L.F. Moore, M.R.
Louis, C.C. Lundberg,
and J. Martin. Beverly
Hills, CA: Sage, 1991,
pp. 243–53.
16.29 Goffee, R., and G.
Jones. The Character
of a Corporation. New
York: Harper Busi-
ness, 1998.
16.30 Ibid.
16.31 Central Intelligence
Agency. The CIA
World Fact Book 2013.
Washington, DC:
Skyhorse, 2013.
16.32 Hong, Y.; H. Liao;
J. Hu; and K. Jiang.
“Missing Link in
the Service Profit
Chain: A Meta-
Analytic Review of
the Antecedents,
Consequences, and
Moderators of Service
Climate.” Journal of
Applied Psychology 98
(2013), pp. 237–67;
Walumba, F.O.; C.A.
Hartnell; and A. Oke.
“Servant Leadership,
Procedural Justice Cli-
mate, Service Climate,
Employee Attitudes,
and Organizational
Citizenship Behavior:
A Cross-level Inves-
tigation.” Journal of
Applied Psychology 95
(2010), pp. 517–29;
and Schneider, B.;
D.E. Bowen; M.G.
Ehrhart; and K.M.
Holcombe. “The
Climate for Service:
Evolution of a Con-
struct.” In Handbook
of Organizational Cul-
ture and Climate, ed.
N.M. Ashkanasy, C.
Final PDF to printer
536 C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 536 10/17/17 11:44 AM
Wilderom, and M.F.
Peterson. Thousand
Oaks, CA, Sage, 2000,
pp. 21–36.
16.33 Hong et al., “Missing
Link in the Service
Profit Chain”; and
Schneider, B.; M.G.
Ehrhart; D.M. Mayer;
J.L. Saltz; and K.
Niles-Jolly. “Under-
standing Organization–
Customer Links in
Service Settings.”
Academy of Manage-
ment Journal 48
(2005), pp. 1017–32.
16.34 du Gay, P., and G. Sala-
man. “The Cult(ure) of
the Customer.” In Stra-
tegic Human Resource
Management, ed. C.
Mabey, G. Salaman,
and J. Storey. London:
Sage, 1998, pp. 58–67.
16.35 Anonymous. “World’s
Most Admired Com-
panies 2017.” Fortune
(accessed May 1,
2017): http://fortune
.com/worlds-most-
admired-companies/
list
16.36 McGregor, J. “USAA’s
Battle Plan.” Bloomberg
Businessweek, March 1,
2010, pp. 40–44.
16.37 Grizzle, J.W.; A.R.
Zablah; T.J. Brown;
J.C. Mowen; and J.M.
Lee. “Employee–
Customer Orientation
in Context: How the
Environment Moder-
ates the Influence of
Customer Orientation
on Performance
Outcomes.” Journal of
Applied Psychology 94
(2009), pp. 1227–42.
16.38 Bureau of Labor
Statistics. “Workplace
Injuries and Illnesses
in 2015,” 2016, http://
www.bls.gov/news
.release/pdf/osh .
16.39 Zohar, D., and G.
Luria. “Climate as
a Social-Cognitive
Construction of
Supervisory Safety
Practices: Scripts as
a Proxy of Behavior
Patterns.” Journal of
Applied Psychology 89
(2004), pp. 322–33.
16.40 Hofmann, D.A.; F.P.
Morgeson; and S.J.
Gerras. “Climate as
a Moderator of the
Relationship between
Leader-Member
Exchange and Content
Specific Citizenship:
Safety Climate as an
Exemplar.” Journal of
Applied Psychology 88
(2003), pp. 170–78.
16.41 Katz-Navon, T.;
E. Naveh; and Z.
Stern. “Safety Cli-
mate in Healthcare
Organizations: A
Multi-Dimensional
Approach.” Academy of
Management Journal 48
(2005), pp. 1075–89.
16.42 Gilbert, D., and R.
Gold. “As Big Drillers
Move In, Safety Goes
Up.” The Wall Street
Journal, April 1, 2013,
p. A1.
16.43 Clarke, S. “Perceptions
of Organizational
Safety: Implications
for the Development
of Safety Culture.”
Journal of Organiza-
tional Behavior 20
(1999), pp. 185–98.
16.44 Beus, J.M.; S.C. Payne;
M.E. Bergman; and
W. Arthur Jr. “Safety
Climate and Injuries:
An Examination of
Theoretical and Empiri-
cal Relationships.”
Journal of Applied Psy-
chology 95 (2010), pp.
713–27; and Christian,
M.S.; J.C. Bradley;
J.C. Wallace; and M.J.
Burke. “Workplace
Safety: A Meta-
Analysis of the Roles
of Person and Situation
Factors.” Journal of
Applied Psychology 94
(2009), pp. 1103–27.
16.45 Fairchild, C. “Solving
Tech’s Diversity
Problem—Starting at
the Top.” Fortune,
March 15, 2015,
pp. 126–27.
16.46 Source: Pamela Bab-
cock, “What CEO’s
Think about Diversity,”
shrm.org (Society for
Human Resource Man-
agement) October 3,
2011.
16.47 Source: Bensinger,
G. “Embattled Uber
Promisess Changes in
Corporate Culture.”
The Wall Street Jour-
nal, Mar. 22, 2017.
16.48 Sacks, D. “Creative
Conversation—Rose
Marcario.” Fast Com-
pany, February 2015,
pp. 34–36.
16.49 Paumgarten, N. “Wild
Man.” The New Yorker,
September 19, 2016,
pp. 62–73.
16.50 Mangalindan, J.P.
“A Healthier, More
Rewarding Work-
place.” Fortune, Octo-
ber 6, 2014, pp. 49–50.
16.51 McLean, L.D. “Orga-
nizational Culture’s
Final PDF to printer
537C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 537 10/17/17 11:44 AM
Influence on Creativ-
ity and Innovation: A
Review of the Litera-
ture and Implications
for Human Resource
Development.”
Advances in Developing
Human Resources 7
(2005), pp. 226–46.
16.52 Mattioli, D., and
K. Maher. “At 3M,
Innovation Comes in
Tweaks and Snips.”
The Wall Street Jour-
nal (online), March 1,
2010.
16.53 Lev-Ram, M. “If I Ran
The Circus.” Fortune,
March 1, 2017, pp.
132–42.
16.54 Colvin, G. “Personal
Bests.” Fortune, March
15, 2015, pp. 106–10;
and Tkaczyk, C. “No.
20, SAS; Offer Afford-
able (Awesome) Day
Care.” Fortune, August
17, 2009, p. 26.
16.55 O’Reilly, C.A. “Cor-
porations, Culture,
and Commitment:
Motivation and Social
Control in Organiza-
tions.” California
Management Review
31 (1989), pp. 9–25.
16.56 Source: Glazer, E.
“Well Fargo Digs
Deeper Into Its Cul-
ture Issues.” The Wall
Street Journal, March
21, 2017.
16.57 O’Reilly et al., “People
and Organizational
Culture.”
16.58 Schein, E.H. “Three
Cultures of Manage-
ment: The Key to
Organizational
Learning.” Sloan
Management Review
38 (1996), pp. 9–20.
16.59 Egan, T.M. “The Rel-
evance of Organiza-
tional Subculture for
Motivation to Transfer
Learning.” Human
Resource Development
Quarterly 19 (2008),
pp. 299–322; and
Boisner, A., and J.
Chatman. “The Role
of Subcultures in
Agile Organizations.”
In Leading and
Managing People in
Dynamic Organiza-
tions, ed. R. Petersen
and E. Mannix. Mah-
wah, NJ: Erlbaum,
2003.
16.60 See Howard-Grenville,
J.A. “Inside the
‘BLACK BOX’: How
Organizational Cul-
ture and Subcultures
Inform Interpreta-
tions and Actions
on Environmental
Issues.” Organization
& Environment 19
(2006), pp. 46–73;
and Jermier, J.; J.
Slocum; L. Fry; and
J. Gaines. “Organiza-
tional Subcultures in
a Soft Bureaucracy:
Resistance behind the
Myth and Façade of
an Official Culture.”
Organizational Science
2 (1991), pp. 170–94.
16.61 Steffy, L. “Whata-
battle!” Texas Monthly
(online), September
2015.
16.62 Schneider, B.; H.W.
Goldstein; and D.B.
Smith. “The ASA
Framework: An
Update.” Personnel
Psychology 48 (1995),
pp. 747–73; and
Swider, B., R. Zim-
merman, and M. Bar-
rick. “Searching for
the Right Fit: Devel-
opment of Applicant
Person–Organization
Fit Perceptions Dur-
ing the Recruitment
Process.” Journal of
Applied Psychology 100
(2015), pp. 880–93.
16.63 Graf, A.B. “Building
Corporate Cultures.”
Chief Executive, March
2005, p. 18.
16.64 Foust, D. “Where
Headhunters Fear to
Tread.” BusinessWeek,
September 14, 2009,
pp. 42–44.
16.65 For good summaries
of socialization, see
Fisher, C.D. “Organi-
zational Socialization:
An Integrative View.”
Research in Personnel
and Human Resource
Management 4 (1986),
pp. 101–45; and Bauer,
T.N.; E.W. Morrison;
and R.R. Callister.
“Organizational Social-
ization: A Review
and Directions for
Future Research.” In
Research in Personnel
and Human Resource
Management, Vol. 16,
ed. G.R. Ferris. Green-
wich, CT: JAI Press,
1998, pp. 149–214.
16.66 Cable, D.M.; L.
Aiman-Smith; P.W.
Mulvey; and J.R.
Edwards. “The
Sources and Accuracy
of Job Applicants’
Beliefs about Orga-
nizational Culture.”
Academy of Manage-
ment Journal 43
(2000), pp. 1076–85;
and Louis, M.R.
“Surprise and Sense-
Making: What New-
comers Experience in
Final PDF to printer
538 C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 538 10/17/17 11:44 AM
Entering Unfamiliar
Organizational Set-
tings.” Administrative
Science Quarterly 25
(1980), pp. 226–51.
16.67 Chao, G.T.; A.
O’Leary-Kelly; S.
Wolf; H.J. Klein; and
P.D. Gardner. “Organi-
zational Socialization:
Its Content and Con-
sequences.” Journal of
Applied Psychology 79
(1994), pp. 450–63.
16.68 Ibid.; Klein, H., and
N. Weaver. “The
Effectiveness of an
Organizational-Level
Orientation Train-
ing Program in the
Socialization of New
Hires.” Personnel
Psychology, Spring
2000, pp. 47–66; and
Wesson, M.J., and
C.I. Gogus. “Shaking
Hands with a Com-
puter: An Examina-
tion of Two Methods
of Organizational
Newcomer Orienta-
tion.” Journal of
Applied Psychology 90
(2005), pp. 1018–26.
16.69 Gravelle, M. “The Five
Most Common Hiring
Mistakes and How
to Avoid Them.” The
Canadian Manager 29
(2004), pp. 11–13.
16.70 Van Maanen, J., and
E.H. Schein. “Toward
a Theory of Organiza-
tional Socialization.”
Research in Organi-
zational Behavior 1
(1979), pp. 209–64.
16.71 Ashford, S.J., and J.S.
Black. “Proactivity
during Organizational
Entry: The Role of
Desire for Control.”
Journal of Applied
Psychology 81 (1996),
pp. 199–214; and Kim,
T.; D.M. Cable; and
S. Kim. “Socialization
Tactics, Employee
Proactivity, and
Person–Organization
Fit.” Journal of Applied
Psychology 90 (2005),
pp. 232–41.
16.72 Lublin, J. “The
Telltale Sign a New
Hire Isn’t Fitting
In.” The Wall Street
Journal, January 10,
2017: https://www
.wsj.com/articles/
email-can-reveal-
how-well-new-hires-
fit-in-1484060400;
and Srivastava, S.,
A. Goldberg, V. G.
Manian, and C. Potts.
“Enculturation Trajec-
tories: Language, Cul-
tural Adaptation, and
Individual Outcomes
in Organizations.”
Management Science,
forthcoming: http://
pubsonline.informs
.org/doi/10.1287/
mnsc.2016.2671.
16.73 Mourier, P., and
M. Smith. Conquer-
ing Organizational
Change: How to Suc-
ceed Where Most Com-
panies Fail. Atlanta:
CEP Press, 2001.
16.74 Source: Higgins, T.
“Mary Barra, the Con-
tender: GM’s Next
CEO May Not Be a
Car Guy.” Bloomberg
Businessweek, June 13,
2013, http://www
.businessweek.com/
articles/2013-06-13/
mary-barra-the-
contender-gms-next-ceo-
may-not-be-a-car-guy.
16.75 Schein, Organiza-
tion Culture and
Leadership.
16.76 Hartnell, C., A.J.
Kinicki, L. Lambert,
M. Fugate, and P.
Corner. “Do Simi-
larities or Differences
Between CEO Leader-
ship and Organiza-
tional Culture Have a
More Positive Effect
on Firm Performance?
A Test of Competing
Predictions.” Journal
of Applied Psychol-
ogy 101 (2016),
pp. 846–61.
16.77 Gubbins, E. “Nortel’s
New Execs Bring
Cisco Experience.”
Telephony, April 11,
2005, pp. 14–15.
16.78 Source: Glazer, E.;
J.S. Lublin; and D.
Mattioli. “Penney
Backfires on Ack-
man.” The Wall Street
Journal, April 10,
2013, p.B1.
16.79 Weber, Y. “Measuring
Cultural Fit in Merg-
ers and Acquisitions.”
In Handbook of
Organizational Culture
and Climate, ed.
N.M. Ashkanasy, C.
Wilderom, and M.F.
Peterson. Thousand
Oaks, CA; Sage, pp.
309–20.
16.80 Source: Foust, D.
“Pulling Delta Out of
a Nosedive.” Business-
Week, May 25, 2009,
pp.36-37.
16.81 Stahl, G.K., and M.E.
Mendenhall. Merg-
ers and Acquisitions:
Managing Culture and
Human Resources.
Final PDF to printer
539C H A P T E R 1 6 Organizational Culture
coL27660_ch16_508-539.indd 539 10/17/17 11:44 AM
Stanford, CA: Stanford
University Press, 2005.
16.82 Foust, D.; J. Ewing;
and G. Smith. “Looks
Like a Beer Brawl.”
BusinessWeek, July 28,
2008, p. 52.
16.83 Gibson, R. “Package
Deal: UPS’s Purchase
of Mail Boxes Etc.
Looked Great on
Paper. Then Came the
Culture Clash.” The
Wall Street Journal,
May 8, 2006, p. R13.
16.84 Jana, R. “Putting the
i into HiP.” Business-
Week, November 26,
2007, p. 10.
16.85 Gillenwater, P., and T.
Walton. “Bee Culture.”
Mergers and Acquis-
tions 46 (2011), p. 38.
16.86 Hartnell, C.A.; A.Y.
Ou; and A. Kinicki.
“Organizational Cul-
ture and Organizational
Effectiveness: A Meta-
Analytic Investigation
of the Competing
Values Framework’s
Theoretical Sup-
positions.” Journal of
Applied Psychology 96
(2011), pp. 677–94.
16.87 Safian, R. “Put Your
Values To Work.” Fast
Company, May 2017,
pp. 50–59.
16.88 Arthur, W., Jr.; S.T. Bell;
A.J. Villado; and D.
Doverspike. “The Use
of Person–Organization
Fit in Employment
Decision Making:
An Assessment of
Its Criterion-Related
Validity.” Journal of
Applied Psychology 91
(2007), pp. 786–801;
and Kristof-Brown,
A.L.; R.D. Zimmer-
man; and E.C. John-
son, “Consequences
of Individuals’ Fit at
Work: A Meta-Analysis
of Person–Job,
Person–Organization,
Person–Group, and
Person–Supervisor
Fit,” Personnel Psychol-
ogy 58 (2005),
pp. 281–342.
16.89 Barber, A.E. Recruit-
ing Employees: Individ-
ual and Organizational
Perspectives. Thousand
Oaks, CA: Sage, 1998.
16.90 Wanous, J.P. Orga-
nizational Entry:
Recruitment, Selec-
tion, Orientation and
Socialization of New-
comers. Reading, MA:
Addison-Wesley, 1992.
16.91 Source: Gerdes, L.
“The Best Places to
Launch a Career.”
BusinessWeek, Septem-
ber 14, 2009, 32-39.
16.92 Anderson, N.R.; N.A.
Cunningham-Snell; and
J. Haigh. “Induction
Training as Socializa-
tion: Current Practice
and Attitudes to Evalu-
ation in British Organi-
zations.” International
Journal of Selection and
Assessment 4 (1996),
pp. 169–83.
16.93 Wesson and Gogus,
“Shaking Hands with
a Computer.”
16.94 Ibid.; and Klein
and Weaver, “The
Effectiveness.”
16.95 Source: Gallagher,
L. “The Education
of Airbnb’s Brian
Chesky.” Fortune, July
26, 2015, pp. 92-100.
16.96 Source: Gunther,
M. “Nothing Blue
about This Airline.”
Fortune, September
14, 2009, pp. 114-18.
16.97 Wanberg, C.R.; E.T.
Welsh; and S.A.
Hezlett. “Mentor-
ing Research: A
Review and Dynamic
Process Model.”
Research in Person-
nel and Human
Resources Manage-
ment 22 (2003),
pp. 39–124.
16.98 Allen, T.D.; L.T.
Eby; M.L. Poteet; E.
Lentz; and L. Lima.
“Outcomes Associ-
ated with Mentoring
Protégés: A Meta-
Analysis.” Journal of
Applied Psychology 89
(2004), pp. 127–36.
16.99 Kranz, G. “More
Firms Paying Mind
to Mentoring.” Work-
force Management,
January 2010, p. 10.
16.100 Kessler, S. “How to
Start a Mentoring
Program.” Inc.,
April 6, 2010, http://
www.inc.com/
guides/2010/04/
start-mentoring-
program.html.
16.101 Ibid.
16.102 Fuhrmans, V. “Hiring
Veterans Is Easy.
Keeping Them Is
Hard.” The Wall Street
Journal (online),
March 28, 2017.
16.103 Kaplan, D.A. “Mars
Incorporated: A
Pretty Sweet Place
to Work.” Fortune,
February 4, 2013,
pp. 72–82.
Final PDF to printer
540
coL27660_case_540-548.indd 540 10/17/17 12:18 PM
Reenergizing Employees After
a Downsizing1C A S E
Integrative Cases
L E A R N I N G G OA L S
This case will help you learn to evaluate and manage the con-
sequences of significant organizational changes, like downsiz-
ing. As the managing editor of a small newspaper, you’ll be
assisting the editor as she grapples with the consequences of a
recent layoff. The case will touch on both the immediate after-
math of the downsizing and also on how work will need to be
structured and reorganized going forward. After reading the
case, you’ll prepare a report for your editor that will lay out the
pluses and minuses of a number of potential action steps for
reenergizing the paper’s staff.
K E Y W O R D S C O V E R E D
• Task performance
• Affective commitment
• Job characteristics theory
• Equity theory
• Psychological empowerment
• Informational justice
• Big Five
• Restructuring
T H E S I T UAT I O N
Andrea Zuckerman had been dreading this day for some time.
As the editor in chief of the Blaze, she had been aware of the
impending downsizing for some time. But the Blaze is just a
small, college-town newspaper—owned by a large national
conglomerate. So she had to hold her tongue while the corpo-
rate wheels turned. She didn’t agree with how the consultants
hired by corporate had determined who would go, which was
largely determined by who had the highest salaries. And she
didn’t agree with how the news was being delivered—not by
her, but by a consultant who would be a complete stranger to
all involved. “They’re taking away our wisest,” she noted, “and
they’re taking away those folks’ dignity for good measure.”
Not that Andrea could argue with the reasons behind the
downsizing. She was, after all, working in a dying industry.
Every newspaper, from The New York Times and Washington
Post down to the smallest rag in the smallest town, had a sliver
of the readership of a decade ago. First it was 24-hour cable
news, then the Internet, then smartphones. Each made news-
papers less central to the current events consumption of the
folks in a given town. Corporate had tried to stay ahead of
these trends when they bought the Blaze, an event that had
been marked by a smaller round of downsizing as costs were
cut, the paper was scaled back, and Tuesday and Wednesday
deliveries were ended. But there had been hope associated
with those changes, with everyone assuming that corporate
resources could help the Blaze reinvent itself and leverage new
technologies to stay relevant.
This time around, the Blaze is confronting a “new normal.”
Its function moving forward will be to serve as a local por-
tal to the broader news resources offered by corporate. When
folks in town log on to the Blaze using either their web browser
or their smartphone or tablet app, they’ll see a combination
of local stories written by Blaze staff and national and world
stories authored by staff at other papers under the corporate
umbrella. Eventually, the print version of the paper will be a
weekend-only phenomenon, and even that will almost certainly
end at some point. All these changes mean that the paper will
need fewer reporters, photographers, artists, and section edi-
tors, not to mention fewer assistants. There may also need to
be some restructuring and merging of assignments and duties.
But that’s getting ahead of things a bit. The first item that
Andrea wants to discuss in her meeting with you is what to say
to the staff at the morning briefing. As the survivors of a lay-
off that’s being poorly handled, it’ll be on her to restore some
semblance of morale. After all, the last thing the paper needs
is its remaining staff giving two weeks’ notice. In fact, they’re
going to need to be more committed than ever because more
is going to be asked of them than when they were hired. She’ll
have to be somewhat careful with this speech, of course, as
the HR person installed by corporate—Jessie Vasquez—will no
doubt remind her. Jessie is good at his job in many ways, even
if Andrea complains about his general level of risk aversion.
Final PDF to printer
541I N T E G R A T I V E C A S E S
coL27660_case_540-548.indd 541 10/17/17 12:18 PM
Jessie’s primary concerns will revolve around Andrea saying
something that could either trigger a wrongful termination suit
or be used as ammunition if such a suit is brought by a staffer
against corporate.
The afternoon briefing is going to be more complicated.
That’s where Andrea hopes to begin charting a course toward
the “new normal” so that everyone understands what they’ll
be in for. The rumor mill has already been working overtime,
and many of the scenarios being floated might actually wind
up being worse than the eventual status quo. So it’s important
to begin discussing the future look of the Blaze quickly, to cre-
ate some information to go along with the misinformation.
Of course, Andrea doesn’t want to make decisions about that
future course too quickly because nothing will undermine the
staff’s confidence more than a collection of faulty ideas that
gets revised a few months into its existence.
There are a lot of things to consider when contemplating
the new operations of the Blaze. The paper has historically
grouped its functions into five areas: state, city, sports, life-
style, and business. It seems to Andrea that those five areas
will need to get merged into two or three. The reporters, pho-
tographers, artists, and editors in those areas will still perform
the same duties; they’ll just do those duties for a broader range
of content than they did before. But how to decide whom to
group? Some groupings seem logical to Andrea, but it may be
that the staff working in those areas would find other combina-
tions more appealing. And it seems like the degree of “enlarge-
ment” will vary a bit. Some staffers will be taking on just a
little bit more, whereas others will be taking on a lot more.
The paper will need both groups to perform their tasks, and
perform them well.
Of course, there’s also the matter of who’s willing and able
to shoulder a lot more rather than a little more. Andrea knows
from experience that this can be a dicey issue. Some staffers
excel at a narrowly defined set of duties but struggle once those
duties are expanded. Others seem to lack any limit to what
they can take on, at least in the short term. But how to tell
one group from the other, aside from Andrea’s own hunches?
Everyone at the Blaze filled out a bunch of assessments and
inventories when corporate acquired the paper, and all that
information should be in everyone’s personnel files. It may not
offer definitive answers, but it’s a good bet that the informa-
tion would offer at least some insights.
Asking some staffers to take on a lot more while others are
asked to take on a little more could be a recipe for controversy.
Indeed, Andrea’s already been getting complaints about the
relative workloads across areas for years! In this regard, cor-
porate might actually help for a change. It turns out that they
tend to budget more for compensation-related expenditures in
the wake of a downsizing. They’ve learned from experience
that survivors sometimes need a bit of a bump to stay com-
mitted, and they’ve also learned that “downsizees” occasion-
ally need to be hired back, this time at the going rate for the
job market. Corporate can justify such expenses because the
downsizing still results in a cost savings, even with extra for
the survivors factored in. She’d have to check with Jessie, but
Andrea suspects she could leverage those extra funds in a cre-
ative way, to make the new pay structure match up with the
new job structure.
Certainly there are a lot of moving parts to the kinds of
restructuring that Andrea is contemplating. Although her role
as editor in chief gives her the best “big-picture” sense of how
all those parts look from 20,000 feet, it’s still not clear that she
knows everything she needs to know (even with Jessie’s help).
On the one hand, it might be helpful to involve the Blaze’s staff
in the decision making as the future course of the paper gets
charted. That would give them “buy-in” and ensure that all the
bases are covered as a new structure takes shape. On the other
hand, keeping reporters, photographers, artists, and editors
on the same page is often like herding cats. What if she asks
for suggestions and the staffers take off in completely different
directions? Once the Pandora’s box of “input” is opened, it’s
not clear that even Andrea could get it shut again.
Although the new day-to-day work of the Blaze staff is fore-
most on Andrea’s mind, she can’t help but think of a bigger-
picture issue that hangs over everything. Will the staffers still
feel the same way about not just their jobs, but their vocations?
It was hard enough when the Blaze was first acquired by cor-
porate. Many of the staffers had been attracted to “Blaze 1.0”
because it was a small-town operation. They could live in a
charming place with a low cost of living, and could do their
work the way they wanted to. The more corporate “Blaze 2.0”
brought with it a certain degree of standardization, with corpo-
rate imposing some common work practices that it had honed
in other, mostly bigger papers. But still, at the end of the day,
everyone was still in the newspaper business.
Even if a new structure works out, and even if the compen-
sation issues get solved, the move to “Blaze 3.0” poses a more
existential threat. Is everyone still in the newspaper business,
or are they now in the web portal business? How much of their
identity is wrapped up in the feeling of seeing someone read
the paper at a coffee shop or pick it up off a doorstep? And
what does it mean for the Blaze to focus only on local news,
no longer being able to weigh in on world and national events,
issues, trends, sports, and buzz? These issues hit home espe-
cially deeply for Andrea. Not only was her father in the news-
paper business, but her grandfather was as well. They used to
joke that “ink was in their blood.” One day, there might not
even be any ink.
Some motivational clichés could be sprinkled into the
morning and afternoon briefings, of course. But Andrea’s
never been the rah-rah type, and the pain of losing so many
colleagues would likely cause such speechifying to fall on deaf
ears. Maybe this is how encyclopedia salespeople felt, or type-
writer manufacturers, once upon a time. Or maybe there’s
something Andrea could do to retain some of the meaning and
“romanticism” in what the Blaze does. The paper has always
been so focused on the day-by-day, issue-by-issue pressures of
the job. Maybe it’s missed some opportunities to do something
larger for the town or the nearby campus.
Final PDF to printer
542 I N T E G R A T I V E C A S E S
coL27660_case_540-548.indd 542 10/17/17 12:18 PM
YO U R TAS K
Your task is to prepare a report for Andrea that lays out some
potential courses of action to follow at the morning and after-
noon briefings, as well as moving forward as the new course
for the Blaze is charted. Be sure to provide not just specific
recommendations, but also some thoughts that support those
recommendations so that Andrea understands your reasoning.
In particular, your report should touch on the following points.
1. Drawing on discussions of informational justice, how
should Andrea approach the morning briefing? Should
she be honest and informative in explaining corporate
actions in the downsizing, or should she be more guarded?
2. How could job characteristics theory guide Andrea as
she considers ways of combining areas for the staffers? Is
there a way to give the new versions of their jobs a higher
satisfaction potential than the pre-downsizing versions?
3. Assuming the staffers’ personnel files have data on the Big
Five, how could those data be used to inform the decisions
about combining areas? What would be the profile of
someone who could take on a lot more versus someone
who can take on only a little more?
4. What advice would you give to Andrea in terms of her use
of the bigger compensation budget? Would you give every-
one a short-term “retention bonus” or a more permanent
raise? Or would you leverage those funds to support the
changes in the work structure, especially for those staff-
ers with an especially expanded workload? What would be
the difficulties associated with those two options?
5. How much voice and input would you recommend Andrea
give to the staffers as the Blaze transitions to its “new nor-
mal”? What are the pluses of giving such input and what
would be the dangers associated with it? How could those
dangers be mitigated?
6. As you consider the broader challenges faced by the
newspaper industry, what could Andrea do to maintain
or restore the sense of meaning and significance that the
Blaze staffers connect to their work?
Final PDF to printer
543
coL27660_case_540-548.indd 543 10/17/17 12:18 PM
Managing Commitment
in Demanding Jobs2C A S E
L E A R N I N G G OA L S
This case will allow you to explore the challenges of managing
critical employees who work in demanding jobs. As the lead
management analyst employed by a holding company, you’re
responsible for examining management practices at a newly
acquired firm. More specifically, you’ll be looking into some
problems related to the retention of key employees in this
company. The search for the root causes of the acquisition’s
problems will require consideration of several interrelated fac-
tors having to do with the way the work, and the way people
doing the work, are managed. After reading the case, you’ll
prepare a report for your boss that describes your findings and
recommendations.
K E Y W O R D S C O V E R E D
• Organizational commitment
• Forced ranking
• Transactional theory of stress
• Stressors
• Emotional intelligence
• Team diversity
• Cohesion
• Groupthink
T H E S I T UAT I O N
The Lorean Group, an international holding company, recently
acquired a controlling interest in Tiger Advertising. This adver-
tising agency, which employees 6,644 people worldwide, has
been successful since its inception in 1964. Revenues over the
past four years have been flat, however, and costs of running
the business have been climbing steadily. Tiger was acquired in
spite of this recent decline in profits because of its reputation
in the industry and its extended list of loyal clients. Lorean
has a history of turning around troubled acquisitions, and the
belief is that Tiger can be saved as well.
The Lorean Group intends to let Tiger operate indepen-
dently, though it seeks to understand the causes of the recent
poor performance of the company. The Lorean Group recog-
nizes that, although poor firm performance could be attributed
to isolated incidents, most often there are systematic problems
that require changes in practices and policies. You’re a man-
agement analyst from Lorean, and your boss has given you
the responsibility of analyzing the situation at Tiger and offer-
ing recommendations that will improve the firm’s financial
performance and its long-term prospects. You travel to Tiger’s
corporate headquarters and plan to spend four days meet-
ing with people to gather information that will inform your
recommendations.
Your first meeting with the Tiger top management team
went fairly well. The first thing that struck you was this:
Although the team members are quite different from each
other in obvious ways, beneath the surface there is remark-
able similarity. Of the seven members who compose this team,
three have been with the company since its inception. The
four newer members are much younger and came to the com-
pany more recently in response to the firm’s rapid growth, due
mostly to international expansion that occurred between 2002
and 2007. Despite the differences in age, company tenure, and
their functional and industry backgrounds, the members of
this team seem to be cut from the same cloth in that each is
very businesslike, analytical, hard driving, and results-focused.
In your discussion regarding the company’s expansion,
William Collins, one of the founders, remarked, “The expan-
sion was tough for us because of all the pressure and uncer-
tainty, and to be honest, we really didn’t jell together initially—I
thought it was a big mistake to grow so fast and bring new peo-
ple on board to manage this ship—but now we’re past all that,
we’re very cohesive, and we share the same vision of how we do
business. This is a good thing because when I retire in a couple
of years, I’ll know the company’s in good hands.” Everyone
in the room seemed to nod in agreement. Another founder,
Russell “Rusty” Gee, then looked squarely into your eyes and
added, “I’m not exactly sure what you’re looking to do here,
but we’ve weathered lots of storms together. Yes, we’ve had a
couple of rough years, but we’re more than capable of handling
things ourselves—this was part of the deal, wasn’t it? We know
this place better than anyone, so I can’t imagine we’ll seriously
consider any recommendations that’ll upset the apple cart.”
Rusty made the statement in a friendly way with a smile on his
face, yet you could tell he was very serious.
Although you learned many things during that first meet-
ing, two things stood out that suggested a real problem. First,
turnover among creative team associates at Tiger is high: 35
percent each year for the last two years and 30 percent the year
before that. The industry average is less than 20 percent, and
it is even lower in the top firms. Creative team associates are
vital to Tiger’s success, so this retention issue is a big problem.
Because the company’s business model centers on advertising
design rather than production or media services, creative team
associates constitute the company’s technical core. Although
the Tiger top management team seems aware of the problem,
they seem to rationalize it. As Jamie Waggner, VP of human
resources, noted, “We hire the best and the brightest, so it’s
Final PDF to printer
544 I N T E G R A T I V E C A S E S
coL27660_case_540-548.indd 544 10/17/17 12:18 PM
only natural that they occasionally get poached by other firms.
We try our best to keep them, but during the last few years
we haven’t had the ability to compete with the salaries they’re
being offered elsewhere. Once things turn around for us, we’ll
be able to solve the turnover issue.”
You also learned the company has been sued three times
recently. The cases involved associates who were passed over
for promotion and who claimed that the work environment
was so filled with stress that it made them ill and unable to
work. Although you were aware of the first case because it was
highly publicized, apparently Tiger went to great lengths to
settle the two subsequent cases quickly before anything was
disclosed. The first case was settled out of court as well, but
not before it became an embarrassment to the company and
its principals. You could tell from the tone of the conversation
that the management team members are proud that they pre-
vented word of the other two lawsuits from getting out. Before
you have a chance to ask the question of whether anyone
believes the turnover and lawsuits are related, Jamie volunteers
the following. “We were really unlucky during that period. We
hired three associates who didn’t possess sufficient capabili-
ties, and each had trouble coping in a way that would have led
to better outcomes. Most everyone is drawn here because of
the challenge inherent in the work that we do—we just have to
do a better job in ruling out applicants who don’t fit.”
Your subsequent observations and discussions with the
members of the creative teams did not reveal anything too far
out of the norm as compared to other advertising agencies in
terms of the immediate work context. Workload and time pres-
sure are very high but not atypical for a large advertising agency.
The creative teams typically include three to five associates
and are led by a senior client manager, who makes final design
decisions after receiving input from the members. Although in
your initial meeting Jamie referred to the teams as being self-
managed, the senior client managers function more like tra-
ditional supervisors in that they assign specific tasks to each
member during the projects. Because the support staff is kept
to a minimum at the firm to keep costs down, associates also
have to take care of a lot of the administrative duties. In return,
however, the members of the creative teams get to work on
some highly visible projects for some very well-known clients.
You also note that the creative teams have autonomy to
work wherever and whenever they need to. This arrangement
gives employees a lot of flexibility, and working odd hours in
strange locations has resulted in some stories of which every-
one in the company is familiar. As an example, you heard a
story of a creative team dinner meeting in a private room at a
local restaurant. When the restaurant closed, the senior client
manager handed the owner $1,000 to let them stay and work,
and the team stayed until the restaurant opened for lunch the
next day. Although not everyone at the meeting was on-board
with the idea initially, and in fact, one member had to leave
because of a personal obligation, the team members came
together and produced a very successful deliverable for one
of the firm’s largest clients. The senior manager who revealed
this story did so with pride and remarked how it was a “fantas-
tic team-building experience for those who chose to tough it
out” and that it perfectly reflects the “company’s ‘work-hard,
play-hard’ mentality.”
When you inquire about how the job performance of the
creative associates is managed, you learn that toward the end
of each calendar year, the senior client managers get together
and spend an entire day on the evaluation process. The evalu-
ations focus on the extent to which each associate contributed
to the designs of the teams they worked on during the previous
year. A list of all associates, ordered by their job performance
scores, is generated. This list is then used to determine three
categories, each of which is associated with some significant
reward consequences. The top 10 percent get sizable bonuses,
which typically amount to 50 percent of base pay, and are fast
tracked to senior client manager. The next 30 percent get a
25 percent bonus and are considered “on-track” for promo-
tion. The others get a small share of profit, but typically this
amounts to 2 to 3 percent of their salary.
Bonus checks, and a letter explaining how the bonuses are
distributed, are mailed to the associates’ residential addresses
at the beginning of the winter holiday. When you inquire
about why the company distributes performance feedback this
way, Jamie told you the following: “The associates work in
teams and so they’re understandably sensitive to differences
in their bonuses. Although they’re intended to send strong
signals to the associates, we avoid bad feelings and conflict.
By the time they get back from the holiday, it’s not on their
minds as much.”
You had lunch with several senior client managers to gain
their perspective on the company. Although this meeting
started off well, they became a little defensive when the subject
of the turnover and lawsuits came up. One remarked, “Around
here, you’re rewarded for paying your dues, for doing whatever
it takes to deal with anything that gets thrown at you. Yes, it’s
demanding, and it requires sacrifice, but how else can we find
out whether people have what it takes? Those of us sitting at
this table with you are a product of this and it works—look at
how successful we’ve been. We just can’t tolerate hires who
claim they can’t take it or that it’s abusive.”
You also met with a group of creative team associates, and
for the first time, you’re exposed to a different perspective
regarding what life is like at Tiger. As an example, one associ-
ate said, “I learned a lot from dealing with the pressure at the
beginning, but the work is nonstop. They say it’s ‘work-hard,
play-hard,’ but even the play feels like work.” Another associ-
ate chimed in, “The projects are great, but I never feel like I’m
fully involved, I’m always on the periphery chipping in where
I can.” As a final example, a third associate stated, “It’s defi-
nitely sink-or-swim around here, that’s for sure. It’s easier for
some people who get plugged-in with a manager right away,
but I’ve never seemed to gain favor with any of them regardless
of how many hours I put in. To top it off, the crazy hours are
creating a lot of work–family conflict, and the strains are really
adding up.”
Final PDF to printer
545I N T E G R A T I V E C A S E S
coL27660_case_540-548.indd 545 10/17/17 12:18 PM
YO U R TAS K
Your charge is to prepare a report for your boss that describes
what you learned during your visit to Tiger. The report should
begin with a description of Tiger Advertising and its current
situation. The report should also describe the most important
problems Tiger is confronted with, as well as the causes of
those problems, in terms of OB concepts and theories. In your
report, ensure you cover the following issues.
1. Describe the diversity that’s present in Tiger’s top man-
agement team. Discuss how the team’s diversity likely
affects its functioning and its effectiveness.
2. Describe signs that groupthink is present in Tiger’s top
management team. In what ways is this groupthink prob-
lematic? What can be done to overcome these problems?
3. Describe the primary sources of stress the creative associ-
ates are experiencing. Explain how some of these stressors
have led to Tiger’s problems while others have led to its
success.
4. What is the underlying general premise that senior client
managers seem to have regarding the stressful demands at
Tiger, and in what ways is this premise problematic?
5. Why are the perceptions of the managers and creative
associates so different with respect to the nature of Tiger’s
management practices and policies? What role could
emotional intelligence play in ameliorating some of these
differences?
6. Based on your analysis of Tiger, does the company need
a minor “tune-up” in regard to its practices and poli-
cies, or is a major overhaul in order? What three recom-
mendations would most likely resolve Tiger’s problems
with organizational commitment and potential future
litigation?
Final PDF to printer
546
coL27660_case_540-548.indd 546 10/17/17 12:18 PM
3C A S E
L E A R N I N G G OA L S
This case will help you learn to develop an action plan and
evaluate multiple competing objectives during a complicated
organizational period: a company merger. As a co-manager
and confidant of a project manager tasked with bringing effi-
ciency and a vision to a newly merged hospital system, you
will be providing mentoring advice on how to approach a deli-
cate situation and one that is sure to upset some employees.
After reading the case, you’ll prepare a memo that outlines
your thoughts for how you would proceed as a leader tasked
with creating a new culture that must come together quickly in
order for the unit to survive.
K E Y W O R D S C O V E R E D
• Task performance
• Affective commitment
• Trust
• Escalation of commitment
• Leadership
• Power
• Matrix structure
• Organizational culture
T H E S I T UAT I O N
Sitting across the table, Colleen Brooks looked excited and yet
discouraged at the same time. It seemed to be a strange com-
bination of emotions, but it was a look you had come to rec-
ognize over recent weeks among managers you had grown to
admire over the last few years. Colleen spoke somewhat softly,
“I’m just not sure what I’m supposed to do here. I’ve been put
into this position where I feel I can really make a difference
in a lot of ways, but I also feel like the deck has been stacked
against me. These people just don’t trust us yet, and I’m not
sure given the situation that I can blame them. It’s partially
their fault, though! Had Medical One run its business well to
begin with, there’s a good chance we wouldn’t be here.”
Medical One was the largest multispecialty health care prac-
tice in the northwest part of the United States. It had numer-
ous regional clinics across several hospitals in seven states and
employed more than 13,000 employees and 900 physicians
in addition to running its own insurance plan. In many ways,
Medical One would seem to outsiders as a model health care
provider. Internally, though, Medical One was in severe finan-
cial distress. Cost overruns and bad planning had placed the
company under a great deal of debt. This debt allowed Health-
care Plus, a much smaller (4,600 employees) but more finan-
cially sound practice operating throughout Arizona and New
Mexico, to acquire Medical One by taking over and restructur-
ing its financial situation.
Although health care mergers and acquisitions were
becoming more and more common—with 243 deals totaling
$73.5 billion taking place in the second quarter of last year
alone—it didn’t make the process any easier for those compa-
nies involved. The merger between Healthcare Plus and Medi-
cal One had many potential advantages but carried with it a
certain amount of risk as well. There was great resentment
among the employees of Medical One (some of whom had been
with the company since its inception in 1992) that a smaller
company could come along and just “purchase” them. Medi-
cal One had grown quickly and was known in its area of the
country for providing extremely high-quality health care ser-
vices. Everything they had read or heard through the grapevine
about Healthcare Plus was oriented around cost-cutting and to
most employees at Medical One, lower costs equated to lower-
quality health care.
Colleen was not happy about the way management had
decided to restructure the two companies following the merger.
In order to try to get the best out of both companies—namely,
Medicare One’s customer service focus and Healthcare Plus’s
efficiency and cost containment—the top management team
had decided to create a matrix structure to operate under going
forward. For the most part, managers at Medical One would
continue to report to the same functional directors they had
before. However, each manager would now report and answer
to another director as well. The “new” directors were supposed
to be region-based efficiency experts. Colleen, who had been
a highly successful manager of nursing in one of the largest
Healthcare Plus clinics in Santa Fe, New Mexico, had been
tapped as a new “Regional Director of Nursing Efficiency.”
“What a miserable job title!” Colleen thought when she origi-
nally heard the news. At the same time, this was a big promo-
tion for her and the change would be very positive in many
ways for her and her family.
Colleen’s job was to oversee nursing operations in four
states—New Mexico, Colorado, Utah, and Wyoming. Of the 14
nursing managers she was supposed to supervise, 11 of them
were at Medical One facilities. (The company decided not to
change the “Medical One” name after the merger for marketing
and continued branding purposes.) Fundamentally, Colleen
knew that the reasoning behind the new structure was to blend
Healthcare Plus’s management style and expertise with Medical
One’s scale of operations. Although upper management was
trying to sell the acquisition to everyone inside the organization
Leading in a Hostile Environment
Final PDF to printer
547I N T E G R A T I V E C A S E S
coL27660_case_540-548.indd 547 10/17/17 12:18 PM
as a “merger” of two great companies, almost all of top man-
agement came from Healthcare Plus.
Colleen had decided that the first meeting with her new
managers was an important one, and she decided to bring
them all to Denver, which was a relatively central location
but also where one of Medical One’s largest hospitals oper-
ated. She took great care in personally phoning each manager,
introducing herself, and letting the manager know that she was
looking forward to working with them. Some of those manag-
ers were quiet and hesitant over the phone, but some seemed
very open and receptive—even excited—about the possibility
of working together to make things better. Sarah Stoneford,
a nursing manager in Cheyenne, Wyoming, even told her that
she had been waiting for something like this to happen because
“the amount of waste I see around here on a daily basis would
make anyone cringe in disbelief.”
In order to make everyone feel more equal, Colleen had
arranged for the meeting to take place in a Denver hotel. Having
the meeting in the Denver hospital just seemed too constricting
somehow—she wanted everyone to keep as open a mind as pos-
sible. Plus, Jim Liucci, the nursing manager at the Denver hospi-
tal, had already shared that his nursing director was not excited
about the changes that were coming, and Colleen wanted him
to feel comfortable in speaking to the group and not looking
over his shoulder. While on the phone call with Jim, Colleen
thought, “His operational director doesn’t even know what
changes are coming! How can she be upset about things that
haven’t even happened yet?” but she didn’t want to say anything
until she and Jim had the opportunity to meet in person.
Initially, getting together with everyone went extremely
smoothly. All 14 managers had arrived on time the night before,
and some had even eaten dinner together and hung out in the
hotel bar getting to know one another better. Even though 11
of the managers had worked for Medical One, even occupying
the same jobs, they had actually never met one another before.
Colleen was pleasantly surprised to see all of them having a
good time and being excited about meeting one another. When
she laid her head on her pillow that night, Colleen thought to
herself, “These people are thirsty for change! They recognize
that Medical One has issues that need to be addressed and
it’s simply my goal to push them in the right direction toward
accomplishing our objectives.”
The next morning didn’t go nearly as well. Every time
Colleen mentioned a potential idea that had reduced costs
effectively at Healthcare Plus, it was met with a “that will
never work here” type of answer. After several rounds of this,
Colleen’s frustration seemed to mount. When the Healthcare
Plus managers tried to chime in with evidence that these types
of procedures had worked for them in their facility, the Medi-
cal One managers seemed to form ranks. It wasn’t until it was
too late that Colleen noticed the three Healthcare Plus man-
agers were all sitting together at the large U-shaped table, a
seating arrangement that didn’t seem to be helping things. At
one point, Donna Mitchell, a Medical One nursing manager in
from Provo, Utah, even went as far as to say, “I know that kind
of stuff might work in New Mexico, but our patients expect a
better level of care.” Todd Rappen, a manager in Grand Junc-
tion, Colorado, was even bold enough to comment that if cost
savings were such a big deal, why was the group paying to rent
a hotel meeting room instead of using one of the Denver hospi-
tal’s conference rooms? Colleen knew at that point that things
had gone terribly wrong.
Although it was clear to Colleen that many of the managers
were resistant to the ideas she discussed throughout the day,
most of them placed the blame on their local nursing direc-
tors for their unwillingness to change. This allowed her new
reports to be able to nod their heads in agreement personally,
but introduce negative opinions without fear of recrimination.
As the meeting closed, Colleen tried to assure the group that
this was just the first step of many on a long road to making
a successful situation for everyone. She tried to set an upbeat
tone, but it was clear that many people had been upset by some
of the things that were said during the meeting. There was defi-
nitely an “us vs. them” mentality as everyone left the room to
catch flights or hop in their cars.
Colleen had just now begun to grasp the realities of not
being in a location with her direct reports. There were many
new things she would have to get used to—managing manag-
ers, managing remote individuals, managing people who also
report directly to other managers they were more familiar with
at their location—in essence, her job was to lead with seem-
ingly very little power. What she wouldn’t have to get used
to, though, was upper management expecting her to make
changes at these locations that would create bottom-line
results in a short period of time. The good thing is that she had
lots of experience doing just that. “I know that we have made
many excellent changes at Healthcare Plus without sacrificing
patient care—I just have to get others to open up to that idea,”
Colleen thought on the plane ride home.
As you listen to Colleen, it becomes apparent to you that
she is beginning to question her ability to be able to do this
new job effectively. Although you have been in leadership
development training programs together, the fact is that leader-
ship is much easier when things are going well for a company.
Although there are many potential areas of improvement for
the new company going forward, it’s clear the road is going to
be difficult. Colleen’s voice suddenly lowered as she started
to pack up her things, “Look, I asked you here today to be a
sounding board of sorts, but the truth is I could really use your
advice. I don’t need an answer right now, but if you could give
me your thoughts on things I could do to be a better leader at
this point I would appreciate it. You’ve always given me good
advice in the past.”
YO U R TAS K
Your task as a leadership mentor to Colleen is to prepare a
memo that lays out your thoughts on her situation and some
specific courses of action she should consider as she attempts
to start leading her new group. Make sure to give her a memo
Final PDF to printer
548 I N T E G R A T I V E C A S E S
coL27660_case_540-548.indd 548 10/17/17 12:18 PM
with enough detail so that she understands the reasoning
behind your recommendations. Also keep in mind the order in
which she should follow these steps. In particular, your memo
should touch on the following points.
1. Drawing on what you know about leadership, what types
of behaviors are going to be most important for Colleen as
she begins to interact with her new direct reports. Should
these behaviors change over time?
2. What kinds of power can Colleen use to try to influence
others to adopt some efficiency related procedures? Are
there certain types of influence behaviors that will be more
effective than others given the difficult circumstances?
3. It’s clear that the two companies have very different cul-
tures even though they are both health care providers.
Should one culture be stressed over the other? Will this
affect the way Colleen should lead the group?
4. What does Colleen have going for her in terms of getting
others to trust her? Are there certain things she should
do or say to generate that trust as well as maintain it over
time?
5. How does the new structure affect Colleen’s ability to
lead? It would be useful to detail some of the pros and
cons Colleen will likely face given how things have been
organized.
6. Should Colleen focus more on her direct reports’ perfor-
mance or organizational commitment? Will she exhibit
different behaviors based on that choice? What are the
advantages to focusing on one or the other?
Final PDF to printer
549
coL27660_sidx_549-567.indd 549 11/03/17 01:18 PM
Glossary/Subject Index
Note: Bold page numbers indicate glossary
terms that are highlighted in the text.
360-degree feedback A performance
evaluation system that uses ratings provided
by supervisors, coworkers, subordinates,
customers, and the employees themselves. 48
A
Ability, 304–334 Relatively stable
capabilities of people for performing a
particular range of related activities. 200, 306
in cognition-based trust, 200
cognitive. See Cognitive abilities
emotional. See Emotional ability
in hiring process, 323–326
importance of, 321–323
in integrative model of OB, 9, 321–323
meaning of, 306–307, 307, 320–321
physical, 306, 318–321, 352–353
team member, 352–353
Ability to focus The degree to which
employees can devote their attention to work.
217–218
Absenteeism, 72–73, 142, 206
Abuse Employee assault or endangerment
from which physical and psychological injuries
may occur. 42
Abusive supervision The sustained display
of hostile verbal and nonverbal behaviors on
the part of supervisors, excluding physical
contact. 206
Accommodating A conflict resolution style
by which one party gives in to the other and
acts in a completely unselfish way. 424, 425
Accomplishment striving A strong desire
to accomplish task-related goals as a means of
expressing one’s personality. 270
Action learning Team process training in
which a team has the opportunity to work on
an actual problem within the organization. 396
Action processes Teamwork processes, such
as helping and coordination, that aid in the
accomplishment of teamwork as the work is
actually taking place. 384
Action teams A team of limited duration that
performs complex tasks in contexts that tend to
be highly visible and challenging. 340, 342
Activation The degree to which moods are
aroused and active, as opposed to unaroused
and inactive. 106
Active management-by-exception When
the leader arranges to monitor mistakes and
errors actively and takes corrective action
when required. 457, 458
Adaptability
adaptive task performance, 32
behaviors involved in, 33
in socialization process, 522–523
Adaptive task performance Thoughtful
responses by an employee to unique or unusual
task demands. 32
Additive tasks Tasks for which the
contributions from every member add up to
determine team performance. 353
Adjourning The final stage of team
development, during which members experience
anxiety and other emotions as they disengage
and ultimately separate from the team. 344
Affect-based trust Trust that depends on
feelings toward the authority that go beyond
rational assessment. 197, 198, 201–202
Affect management, 385
Affective commitment An employee’s
desire to remain a member of an organization
due to a feeling of emotional attachment.
63–64
assessing, 66
job satisfaction and, 111
Leading in a Hostile Environment (case),
546–548
Reenergizing Employees After a Downsizing
(case), 540–542
strategies to improve, 65–66
Affective events theory A theory that
describes how workplace events can generate
emotional reactions that impact work
behaviors. 108
African Americans
diversity of workforce, 75–77
relative compensation of, 205
Aggression
aggressor role, 352
personal, 42
Agreeableness One of the “Big Five”
dimensions of personality reflecting traits like
being kind, cooperative, sympathetic, helpful,
courteous, and warm. 266, 267, 271, 353,
355–356
All channel network structure, 388
Alternative dispute resolution A process
by which two parties resolve conflicts through
the use of a specially trained, neutral third
party. 431–432
Ambassador activities Boundary-spanning
activities that are intended to protect the team,
persuade others to support the team, or obtain
important resources for the team. 381–382
Analytics The use of data (rather than just
opinions) to guide decision making. 20
Anchoring bias, 248
Anticipatory stage A stage of socialization
that begins as soon as a potential employee
develops an image of what it would be like to
work for a company. 521–522
Apathetics Employees with low commitment
levels and low task performance levels who
exert the minimum amount of effort needed to
keep their jobs. 70
Apparent sincerity, 421
Apprising An influence tactic in which the
requestor clearly explains why performing
the request will benefit the target personally.
418, 419
Arbitration A process by which a third party
determines a binding settlement to a dispute
between two parties. 432
ASA framework A theory (attraction–
selection–attrition) that states that employees
will be drawn to organizations with cultures
that match their personality, organizations will
select employees that match, and employees
will leave or be forced out when they are not a
good fit. 520
Asians, diversity of workforce, 75–77
Assessment. See Organizational Behavior
(OB) Assessments
Attraction-selection-attrition (ASA) framework,
520
Auditory attention, 319, 320
Autocratic style A leadership style where
the leader makes the decision alone without
asking for opinions or suggestions of the
employees in the work unit. 447–448, 449–450
Autonomy The degree to which a job allows
individual freedom and discretion regarding
how the work is to be done. 102
Final PDF to printer
550 Glossary/Subject Index
coL27660_sidx_549-567.indd 550 11/03/17 01:18 PM
Availability bias The tendency for people
to base their judgments on information that is
easier to recall. 247–249
Avoiding A conflict resolution style by which
one party wants to remain neutral, stay away
from conflict, or postpone the conflict to gather
information or let things cool down. 424, 425
B
Baby Boomers, 77
Bargaining The third stage of the negotiation
process, during which each party gives and
takes to arrive at an agreement. 428
distributive, 426
integrative, 426–427
Basic underlying assumptions The
ingrained beliefs and philosophies of
employees. 511, 514
BATNA A negotiator’s best alternative to a
negotiated agreement. 428
Behavior modeling training A formalized
method of training in which employees observe
and learn from employees with significant
amounts of tacit knowledge. 254
Behavioral coping Physical activities used
to deal with a stressful situation. 133
Behavioral modeling When employees
observe the actions of others, learn from what
they observe, and then repeat the observed
behavior. 239–240
Behavioral strain, 136, 137
Behaviorally anchored rating scales
(BARS) Use of examples of critical incidents
to evaluate an employee’s job performance
behaviors directly. 47–48
Benevolence The belief that an authority
wants to do good for an employee, apart from
any selfish or profit-centered motives. 200–201
Benign job demands Job demands that are
not appraised as being stressful. 128
Biases
availability, 247–249
cultural differences and, 250
decision-making, 248
negotiator, 429
projection, 247
self-serving, 249
Big Five The five major dimensions of
personality including conscientiousness,
agreeableness, neuroticism, openness to
experience, and extraversion. 266–278
agreeableness, 266, 267, 271, 353, 355–356
assessment and scoring, 268–269
changes over life span, 267–270
conscientiousness, 266, 267, 270–271,
285–287, 353
extraversion, 266, 267, 271–274, 353–354,
355–356
in hiring process, 288–289
neuroticism, 266, 267, 273, 274–276
openness to experience, 266, 267, 276–278
Reenergizing Employees After a Downsizing
(case), 540–542
Big Five Inventory (BFI), 289
Biofeedback, 146
Blocker role, 352
Bonuses, 183, 184, 359
Boosterism Positively representing the
organization when in public. 38
Boundary spanning Interactions among
team members and individuals and groups who
are not part of the team. 381–383
Bounded rationality The notion that people
do not have the ability or resources to process
all available information and alternatives when
making a decision. 246
Brainstorming A team process used to
generate creative ideas. 378–379, 380
Bullying, 42
Bureaucratic structure An organizational
form that exhibits many of the facets of a
mechanistic organization. 491–497
client, 493, 494
functional, 492–495
geographic, 493, 494
matrix, 495–497, 546–548 (case)
multi-divisional, 492–497
product, 493–494
Burnout The emotional, mental, and physical
exhaustion from coping with stressful demands
on a continuing basis. 137
Business environment The outside
environment, including customers, competitors,
suppliers, and distributors, which all have an
impact on organizational design. 490
C
Cases
Leading in a Hostile Environment, 546–548
Managing Commitment in Demanding
Jobs, 543–545
Reenergizing Employees After a
Downsizing, 540–542
Causal inference The establishment that
one variable does cause another, based on
covariation, temporal precedence, and the
elimination of alternative explanations. 19
Centrality How important a person’s job is
and how many people depend on that person
to accomplish their tasks. 416
Centralization Refers to where decisions
are formally made in organizations. 388, 483,
486–487, 488
Ceremonies Formal events, generally
performed in front of an audience of
organizational members. 513
Chain of command Answer to the question
of “who reports to whom?” and signifies
formal authority relationships. 483, 484
Challenge stressors Stressors that tend to
be appraised as opportunities for growth and
achievement. 128
job performance and, 141–142
nonwork, 132
organizational commitment and, 141–142
reducing, 143–144
work, 130–131, 141–142
Charisma, 458–460
Chief executive officers (CEOs)
compensation of, 176–177
trust and, 196–197
Circle network structure, 388
Citizens Employees with high commitment
levels and low task performance levels who
volunteer to do additional activities around the
office. 70
Citizenship behavior Voluntary employee
behaviors that contribute to organizational
goals by improving the context in which work
takes place. 35–39
in corporate social responsibility, 219
cultural differences in, 40
interpersonal, 36–37
job satisfaction and, 111
motivation and, 180–181, 182
organizational, 37–38
organizational culture and, 528–529
relevance of, 38–39
trust and, 218
Citizenship fatigue, 39
Civic virtue Participation in company
operations at a deeper-than-normal level through
voluntary meetings, readings, and keeping up
with news that affects the company. 38
Final PDF to printer
551Glossary/Subject Index
coL27660_sidx_549-567.indd 551 11/03/17 01:18 PM
Clear purpose tests Integrity tests that ask
about attitudes toward dishonesty, beliefs about
the frequency of dishonesty, desire to punish
dishonesty, and confession of past dishonesty.
288–290
Client structure An organizational form in
which employees are organized around serving
customers. 493, 494
Climate for transfer An organizational
environment that supports the use of new
skills. 254
Closing and commitment The fourth
and final stage of the negotiation process,
during which the agreement arrived at during
bargaining gets formalized. 428
Coalitions An influence tactic in which
the influencer enlists other people to help
influence the target. 418, 419–420
Coercive power A form of organizational
power based on the ability to hand out
punishment. 414, 415
Cognition-based trust Trust that is rooted
in a rational assessment of the authority’s
trustworthiness. 197, 198, 199–201, 215–216
Cognitive abilities, 306–313 Capabilities
related to the use of knowledge to make
decisions and solve problems. 307
assessing, 312
cognitive cultural intelligence, 308
general, 312, 353, 447
in hiring process, 323–326
perceptual, 309, 311–312
quantitative, 309–310
reasoning, 309, 310
spatial, 309, 310
team member, 353
verbal, 307–309
Cognitive-behavioral techniques, 146–147
Cognitive coping Thoughts used to deal
with a stressful situation. 133
Cognitive distortion A reevaluation of
the inputs an employee brings to a job, often
occurring in response to equity distress. 175
Cognitive moral development As people
age and mature, they move through several
states of moral development, each more mature
and sophisticated than the prior one. 213–214
Cohesion A team state that occurs when
members of the team develop strong emotional
bonds to other members of the team and to
the team itself. 389–390, 391
Managing Commitment in Demanding Jobs
(case), 543–545
Collaboration Seen as both a conflict
resolution style and an influence tactic
whereby both parties work together to
maximize outcomes. 418, 424
collaborative problem solving as team
competency, 395
in conflict resolution, 424, 425
as influence tactic, 417, 418
“smart,” 377
Commitment. See Organizational commitment
Communal culture An organizational
culture type in which employees are friendly to
one another and all think alike. 514, 515
Communication The process by which
information and meaning is transferred from a
sender to a receiver. 386–389
ambassador activities, 381–382
communicator issues, 386–387
information richness in, 387–388
in integrative model of OB, 9
model of communication process, 386
network structure, 388–389
noise in, 387
as team process, 376, 386–389, 395
Communication competence, 386–387
Communion striving A strong desire to
obtain acceptance in personal relationships as
a means of expressing one’s personality. 271
Communities of practice Groups of
employees who learn from one another
through collaboration over an extended period
of time. 254
Company size The number of employees in
a company. 490–491
Company strategy An organization’s
objectives and goals and how it tries to
capitalize on its assets to make money. 490
Comparison other Another person who
provides a frame of reference for judging
equity. 174, 175–176, 177
Compensation systems
CEO pay in, 176–177
elements of, 182–184
meaning of money and, 168, 169
motivation and, 167–168, 176–177,
182–184
pay freezes and cuts, 184
pay satisfaction, 95, 96
procedural justice and, 205
reward power, 413–414, 415
task performance and, 35
team compensation, 359–360
types of, 183, 184
Compensatory forms model A model
indicating that the various withdrawal
behaviors are negatively correlated; engaging
in one type of withdrawal makes one less likely
to engage in other types. 74–75
Competence The capability to perform work
tasks successfully. 179
communication, 386–387
Competing A conflict resolution style by
which one party attempts to get his or her own
goals met without concern for the other party’s
results. 423–424, 425
Compliance When targets of influence are
willing to do what the leader asks but do it
with a degree of ambivalence. 420, 421
Comprehensive interdependence A
form of task interdependence in which team
members have a great deal of discretion in
terms of what they do and with whom they
interact in the course of the collaboration
involved in accomplishing the team’s work.
346–347
Compromise A conflict resolution style by
which conflict is resolved through give-and-
take concessions. 424–425
Compromiser role, 352
Computer technology. See Technology
Confidence building, 385
Conflict resolution, 423–426
alternative dispute resolution, 431–432
conflict management and, 385
leader style and, 423–426
power and, 423–426
as team competency, 395
Conjunctive tasks Tasks for which the
team’s performance depends on the abilities of
the team’s weakest link. 353
Conscientiousness One of the “Big Five”
dimensions of personality reflecting traits
like being dependable, organized, reliable,
ambitious, hardworking, and persevering. 266,
267, 270–271, 285–287, 353
Consensus Used by decision makers to
attribute cause; whether other individuals
behave the same way under similar
circumstances. 249, 251, 380
Consideration A pattern of behavior where
the leader creates job relationships characterized
by mutual trust, respect for employee ideas,
and consideration of employee feelings.
452–453, 454
Final PDF to printer
552 Glossary/Subject Index
coL27660_sidx_549-567.indd 552 11/03/17 01:18 PM
Consistency Used by decision makers
to attribute cause; whether this individual
has behaved this way before under similar
circumstances. 249, 251
Consultation An influence tactic whereby
the target is allowed to participate in deciding
how to carry out or implement a request. 418
Consultative style A leadership style where
the leader presents the problem to employees
asking for their opinions and suggestions
before ultimately making the decision himself
or herself. 448, 450
Contingencies of power, 416
Contingencies of reinforcement Four
specific consequences used by organizations to
modify employee behavior. 237–238
Contingent reward When the leader attains
follower agreement on what needs to be
done using rewards in exchange for adequate
performance. 457, 458
Continuance commitment An employee’s
desire to remain a member of an organization
due to an awareness of the costs of leaving.
63–64, 66–68
embeddedness and, 68
strategies to improve, 81
Continuous reinforcement A specific
consequence follows each and every
occurrence of a certain behavior. 238, 239
Contrast bias, 248
Control movement abilities, 319, 320
Conventional stage of moral development
(Kohlberg), 213
Coordination The quality of physical
movement in terms of synchronization of
movements and balance. 318, 319
as action process for teams, 384–385
task interdependence and, 345, 347
as team competency, 395
Coordination loss Process loss due to the
time and energy it takes to coordinate work
activities with other team members. 376–377
Coordinator role, 352
Coping Behaviors and thoughts used to
manage stressful demands and the emotions
associated with the stressful demands. 132
with stressors, 132–135
Corporate social responsibility A
perspective that acknowledges that the
responsibility of a business encompasses
the economic, legal, ethical, and citizenship
expectations of society. 219
Correlation The statistical relationship
between two variables. Abbreviated r, it can
be positive or negative and range from 0
(no statistical relationship) to 1 (a perfect
statistical relationship). 17–19
Countercultures When a subculture’s values
do not match those of the organization. 520
Counterproductive behavior Employee
behaviors that intentionally hinder
organizational goal accomplishment. 39–43
job satisfaction and, 111
motivation and, 180, 182
personal aggression, 42
political deviance, 41–42
production deviance, 41
property deviance, 39–41, 211–212,
214–215
substance abuse, 41
trust and, 218
Courtesy Sharing important information
with coworkers. 37
Coworker satisfaction Employees’ feelings
about their coworkers, including their abilities
and personalities. 96, 97
Creative task performance The degree to
which individuals develop ideas or physical
outcomes that are both novel and useful. 32–33
Creativity
creative behavior as taskwork process,
378–380
in creative task performance, 32–33
innovators and, 32–33
openness to experience and, 266, 267,
276–278
originality and, 309, 310
Creativity culture A specific culture type
focused on fostering a creative atmosphere.
517, 518
Crisis situation, 33, 244
Cross-cultural organizational behavior, 10
Cross-training Training team members in the
duties and responsibilities of their teammates.
396
Cultural intelligence, 308
Cultural values, 280–287 Shared beliefs
about desirable end states or modes of conduct
in a given culture that influence the expression
of traits. 266
citizenship behavior and, 40
Hofstede’s taxonomy and, 281–283
importance of, 285–287
in integrative model of OB, 9, 285–287
multicultural personality questionnaire, 284
Project GLOBE (Global Leadership
and Organizational Behavior
Effectiveness), 281–283, 459
trust propensity by nation, 200
Culturally endorsed implicit leadership
theory, 459
Culture The shared values, beliefs, motives,
identities, and interpretations that result from
common experiences of members of a society
and are transmitted across generations. 280
biases and cultural differences, 250
emotional cultural intelligence, 308
motivation and, 174, 179–180
Culture strength The degree to which
employees agree about how things should
happen within the organization and behave
accordingly. 517–520
Customer service culture A specific culture
type focused on service quality. 515
Cyberloafing, 72
D
Daily hassles Minor day-to-day demands
that interfere with work accomplishment. 130
Daydreaming, 72
Decision informity The degree to which
team members possess adequate information
about their own task responsibilities. 381
Decision making The process of generating
and choosing from a set of alternatives to solve
a problem. 234, 241–251
centralization and, 488
individual differences in, 251–252
in integrative model of OB, 8–9
leader styles of, 447–451
nonprogrammed decisions, 243, 244
numerous small decisions in organizational
behavior, 12
problems of, 246–251
escalation of commitment, 249–251,
546–548 (case)
faulty attributions, 249, 251
faulty perceptions, 247–249
groupthink, 389–390, 543–545 (case)
limited information, 246–247
Final PDF to printer
553Glossary/Subject Index
coL27660_sidx_549-567.indd 553 11/03/17 01:18 PM
programmed decisions, 241–244
rational decision-making model, 244–245, 246
as taskwork process, 380–381
Decoding, 386
Deductive reasoning, 309, 310
Deep-level diversity Diversity of attributes
that are inferred through observation
or experience, such as one’s values or
personality. 355
Delegating When the leader turns
responsibility for key behaviors over to
employees. 455–456
Delegative style A leadership style
where the leader gives the employee the
responsibility for making decisions within
some set of specified boundary conditions.
448–449, 450
Deontological principles, 214
Depth perception, 319, 320
Descriptive ethics, 208
Devil’s advocate role, 351, 352
Differential exposure Being more likely
to appraise day-to-day situations as stressful,
thereby feeling that stressors are encountered
more frequently. 274
Differential reactivity Being less likely to
believe that one can cope with the stressors
experienced on a daily basis. 274
Discretion The degree to which managers
have the right to make decisions on their
own. 416
Disjunctive tasks Tasks with an objectively
verifiable best solution for which the member
with the highest level of ability has the most
influence on team effectiveness. 353
Disposition-based trust Trust that is
rooted in one’s own personality, as opposed
to a careful assessment of the trustee’s
trustworthiness. 197–199, 215
Distinctiveness Used by decision makers
to attribute cause; whether the person being
judged acts in a similar fashion under different
circumstances. 249, 251
Distributive bargaining A negotiation
strategy in which one person gains and the
other person loses. 426
Distributive justice The perceived fairness
of decision-making outcomes. 203, 204, 206
Diversity
in integrative model of OB, 9
managing, 10
organizational commitment and, 75–77
team diversity in, 338–339, 354–356,
543–545 (case)
Diversity culture A specific culture type
focused on fostering or taking advantage of a
diverse group of employees. 516
Dominator role, 352
Downsizing
employee-employer relationship and, 77–79
informational justice and, 207–208
Reenergizing Employees After a Downsizing
(case), 540–542
in restructuring process, 500–501
Dynamic flexibility, 318, 319
Dynamic strength, 318, 319
E
E-mail
emotions of sender in, 387
virtual teams and, 343
Economic exchange Work relationships
that resemble a contractual agreement by
which employees fulfill job duties in exchange
for financial compensation. 218
Egoism, 214
Embeddedness An employee’s connection
to and sense of fit in the organization and
community. 68
Emotion-focused coping Behaviors and
cognitions of an individual intended to help
manage emotional reactions to stressful
demands. 133
Emotion regulation The ability to recover
quickly from emotional experiences. 314
Emotional ability, 313–317
in communication process, 387
emotion regulation, 314
Managing Commitment in Demanding
Jobs (case), 543–545
other awareness, 314
self-awareness, 313
use of emotions, 314–315
Emotional contagion The idea that
emotions can be transferred from one person
to another. 109
Emotional cues Positive or negative
feelings that can help or hinder task
accomplishment. 165
Emotional intelligence A set of abilities
related to the understanding and use of
emotions that affect social functioning. 313
applying, 315
assessing, 315–317
emotional cultural intelligence, 308
Emotional labor When employees manage
their emotions to complete their job duties
successfully. 109
Emotional Quotient Inventory (EQ-i), 316
Emotional support The empathy and
understanding that people receive from others
that can be used to alleviate emotional distress
from stressful demands. 139
Emotions Intense feelings,often lasting for
a short duration, that are clearly directed at
someone or some circumstance. 108
affect management, 385
in communication process, 387
negative, 108–109
positive, 108–109
use of, 314–315
Employee assistance programs, 147–148
Encoding, 386
Encounter stage A stage of socialization
beginning the day an employee starts work,
during which the employee compares the
information as an outsider to the information
learned as an insider. 522
Encourager role, 351, 352
Energizer role, 351, 352
Engagement A term commonly used in
the contemporary workplace to summarize
motivation levels. 163
Equity distress An internal tension
that results from being overrewarded or
underrewarded relative to some comparison
other. 175
Equity theory, 173–177 A theory that
suggests that employees create a mental ledger
of the outcomes they receive for their job
inputs, relative to some comparison other. 174
comparison other in, 174, 175–176, 177
equity distress in, 175
outcomes and inputs in, 175, 176
Reenergizing Employees After a Downsizing
(case), 540–542
Final PDF to printer
554 Glossary/Subject Index
coL27660_sidx_549-567.indd 554 11/03/17 01:18 PM
Erosion model A model that suggests that
employees with fewer bonds with coworkers
are more likely to quit the organization. 65
Escalation of commitment A common
decision-making error in which the decision
maker continues to follow a failing course of
action. 249–251
Leading in a Hostile Environment (case),
546–548
Espoused values The beliefs, philosophies,
and norms that a company explicitly states.
511, 513–514
Ethics, 208–215 The degree to which the
behaviors of an authority are in accordance
with generally accepted moral norms. 197
in corporate social responsibility, 219
four-component model of, 210
in integrative model of OB, 8
modeling, 240
moral awareness in, 210–212
moral intent in, 215
moral judgment in, 212–215
prescriptive versus descriptive, 208
ranking by country, 209
Ethics of duties, 214
Ethics of rights, 214
Ethnocentrism One who views his or her
cultural values as “right” and values of other
cultures as “wrong.” 283, 284
Evidence-based management A
perspective that argues that scientific findings
should form the foundation for management
education. 20
Exchange tactic An influence tactic in
which the requestor offers a reward in return
for performing a request. 418, 420
Exchanging information The second stage
of the negotiation process, during which
each party makes the strongest case for its
position. 428
Exit A response to a negative work event by
which one becomes often absent from work or
voluntarily leaves the organization. 70
Expatriates. See also Organizational Behavior
(OB) Internationally
behavior modeling training for, 254
challenges faced by, 10
ethnocentrism of, 284
organizational commitment and, 78, 134
stress faced by, 134
Expectancy The belief that exerting a
high level of effort will result in successful
performance on some task. 164–165, 180
Expectancy theory A theory that describes
the cognitive process employees go through
to make choices among different voluntary
responses. 164–170
expectancy in, 164–165, 180
instrumentality in, 164, 166, 180
motivational force in, 168–170
valence in, 166–168, 180
Expert power A form of organizational
power based on expertise or knowledge.
414–415
Expertise The knowledge and skills that
distinguish experts from novices. 234
Explicit knowledge Knowledge that is easily
communicated and available to everyone.
234–235, 236
Explosive strength, 318, 319
Extent flexibility, 318, 319
External comparisons Comparing oneself
to someone in a different company. 175–176
External locus of control, 274–276
Extinction The removal of a positive outcome
following an unwanted behavior. 238
Extraversion One of the “Big Five”
dimensions of personality reflecting traits like
being talkative, sociable, passionate, assertive,
bold, and dominant. 266, 267, 271–274, 279,
353–354, 355–356
Extrinsic motivation Desire to put forth
work effort due to some contingency that
depends on task performance. 167, 168
F
Facilitative style A leadership style where
the leader presents the problem to a group of
employees and seeks consensus on a solution,
making sure that his or her own opinion
receives no more weight than anyone else’s.
448, 450
Faking Exaggerating responses to a
personality test in a socially desirable fashion.
290–291
Family time demands The amount of time
committed to fulfilling family responsibilities.
132
Far vision, 319, 320
Fault lines, 355
Faulty attributions, 249, 251
Faulty perceptions, 247–249
Feedback In job characteristics theory, it
refers to the degree to which the job itself
provides information about how well the job
holder is doing. In goal setting theory, it refers
to progress updates on work goals. 102, 172
360-degree feedback, 48
cultural differences in, 174
in goal setting theory, 172
information richness and, 387–388
in job characteristics theory, 102
Financial uncertainty Uncertainties with
regard to the potential for loss of livelihood,
savings, or the ability to pay expenses. 131–132
Fine manipulative abilities, 318–320
Fixed interval schedule Reinforcement
occurs at fixed time periods. 238, 239
Fixed ratio schedule Reinforcement occurs
following a fixed number of desired behaviors.
239
Flat span of control, 484–486
Flexibility The ability to bend, stretch, twist,
or reach. 318, 319
Flextime, 145–146
Flow A state in which employees feel a total
immersion in the task at hand, sometimes
losing track of how much time has passed. 107
Focus of commitment The people, places,
and things that inspire a desire to remain a
member of an organization. 65
Follower role, 352
Forced ranking A performance management
system in which managers rank subordinates
relative to one another. 48–49
Managing Commitment in Demanding Jobs
(case), 543–545
Formalization The degree to which rules and
procedures are used to standardize behaviors
and decisions in an organization. 483, 487
Forming The first stage of team
development, during which members try to get
a feel for what is expected of them, what types
of behaviors are out of bounds, and who’s in
charge. 343, 344
Final PDF to printer
555Glossary/Subject Index
coL27660_sidx_549-567.indd 555 11/03/17 01:18 PM
Four-component model A model that
argues that ethical behaviors result from the
multistage sequence of moral awareness,
moral judgment, moral intent, and ethical
behavior. 210
Fragmented culture An organizational
culture type in which employees are distant
and disconnected from one another. 514, 515
Framing bias, 248
Functional structure An organizational
form in which employees are grouped by the
functions they perform for the organization.
492–495
Fundamental attribution error The
tendency for people to judge others’ behaviors
as being due to internal factors such as ability,
motivation, or attitudes. 249
G
g-factor, 312, 313
Gainsharing, 183
Gatekeeper-expediter role, 352
General cognitive ability Capabilities
related to the use of knowledge to make
decisions and solve problems. 312, 353, 447
Geographic structure An organizational
form in which employees are grouped around
the different locations where the company
does business. 493, 494
Goal commitment The degree to which a
person accepts a goal and is determined to
reach it. 172–173
Goal interdependence The degree to
which team members have a shared goal and
align their individual goals with that vision.
348, 349
Goal orientation
assessing, 242
in learning process, 241
Goal setting theory A theory that views
goals as the primary drivers of the intensity
and persistence of effort. 170–173
components of, 170–173
S.M.A.R.T. goals, 173
specific and difficult goals, 170–171
Goal specification, 384
Google Labs Aptitude Test (GLAT), 323
Gossiping Casual conversations about other
people in which the facts are not confirmed as
true. 41
Graduate Management Admission Test
(GMAT), 322
Gross body coordination, 318, 319
Gross body equilibrium, 318, 319
Group decision support systems, 382
Groupthink Behaviors that support
conformity and team harmony at the expense
of other team priorities. 389–390
Managing Commitment in Demanding Jobs
(case), 543–545
Growth need strength The degree to
which employees desire to develop themselves
further. 102, 103, 104
Guanxi (influence), in China, 419
H
Happiness, assessing, 113
Harassment Unwanted physical contact or
verbal remarks from a colleague. 42
sexual, 42, 516
Harmonizer role, 351–352, 352
Health. See also Stress
health and wellness programs, 147–148
health care costs, 143
Hearing sensitivity, 319, 320
Helping Assisting coworkers who have heavy
workloads, aiding them with personal matters,
and showing new employees the ropes when
they are first on the job. 37, 38
Helping behavior, 384
Heuristics Simple and efficient rules of
thumb that allow one to make decisions more
easily. 247
Hierarchical sensitivity The degree to
which the team leader effectively weighs the
recommendations of the members. 381
Hierarchy of authority, 488
High-performance work practices, 12–15
Hindrance stressors Stressors that tend
to be appraised as thwarting progress toward
growth and achievement. 128
job performance and, 141
nonwork, 131–132
organizational commitment and, 141
reducing, 143–144
work, 128–130, 141
Hiring process
applying emotional intelligence in, 315
personality tests in, 287–291
selecting high cognitive ability employees,
323–326
Hispanics, diversity of workforce, 75–77
History A collective pool of experience,
wisdom, and knowledge created by people
that benefits the organization. 12
Hogan Personality Inventory (HPI), 289
Holocracy, 411, 412, 418, 420–421, 434
Human resource management Field of
study that focuses on the applications of OB
theories and principles in organizations. 7
Hybrid outcome interdependence When
team members receive rewards based on both
their individual performance and that of the
team to which they belong. 359–360
Hypotheses Written predictions that specify
relationships between variables. 17
I
Idealized influence When the leader
behaves in ways that earn the admiration,
trust, and respect of followers, causing
followers to want to identify with and emulate
the leader. 458–460, 462
Identity The degree to which a job offers
completion of a whole, identifiable piece of
work. 101
Impact The sense that a person’s actions
“make a difference”—that progress is being
made toward fulfilling some important
purpose. 179
Incivility Communication that is rude,
impolite, discourteous, and lacking in good
manners. 41–42
Independent forms model A model that
predicts that the various withdrawal behaviors
are uncorrelated; engaging in one type of
withdrawal has little bearing on engaging in
other types. 74–75
Individualism-collectivism The degree
to which a culture has a loosely knit social
framework (individualism) or a tight social
framework (collectivism). 281–283
Final PDF to printer
556 Glossary/Subject Index
coL27660_sidx_549-567.indd 556 11/03/17 01:18 PM
Individualistic roles Behaviors that benefit
the individual at the expense of the team. 352
Individualized consideration When the
leader behaves in ways that help followers
achieve their potential through coaching,
development, and mentoring. 460
Inductive reasoning, 309, 310
Influence The use of behaviors to cause
behavioral or attitudinal changes in others. 416
conflict resolution and, 423–426
guanxi (influence) in China, 419
importance of, 429–431
organizational politics and, 420–423
power and, 416–420
resistance to, 420, 421
responses to influence tactics, 420, 421
types of influence tactics, 417–420
Information richness The amount and
depth of information that is transmitted in a
message. 387–388
Informational justice The perceived fairness
of the communications provided to employees
from authorities. 204, 207–208
Reenergizing Employees After a Downsizing
(case), 540–542
Ingratiation The use of favors, compliments,
or friendly behavior to make the target feel
better about the influencer. 418
Inimitable Incapable of being imitated or
copied. 11
Initial public offerings (IPOs), 13
Initiating structure A pattern of behavior
where the leader defines and structures
the roles of employees in pursuit of goal
attainment. 452–453, 454
Initiator-contributor role, 352
Inspirational appeals An influence tactic
designed to appeal to one’s values and ideals,
thereby creating an emotional or attitudinal
reaction. 417–418
Inspirational motivation When the leader
behaves in ways that foster an enthusiasm for
and commitment to a shared vision of the
future. 460, 462
Instrumental support The help people
receive from others that can be used to address
a stressful demand directly. 139
Instrumentality The belief that successful
performance will result in the attainment of
some outcomes. 164, 166, 180
Integrative bargaining A negotiation
strategy that achieves an outcome that is
satisfying for both parties. 426–427
Integrity The perception that an authority
adheres to a set of acceptable values and
principles. 201
Integrity tests Personality tests that focus
specifically on a predisposition to engage in
theft and other counterproductive behaviors
(sometimes also called “honesty tests”).
288–291
Intellectual stimulation When the leader
behaves in ways that challenge followers to
be innovative and creative by questioning
assumptions and reframing old situations in
new ways. 460, 462
Intelligence quotient (IQ), 312
Interdependence, 345–349
assessing, 345, 346
goal, 348, 349
outcome, 348–349, 359–360
task, 345–348, 349
Interests Expressions of personality that
influence behavior through preferences for
certain environments and activities. 279–280
Internal comparisons Comparing oneself to
someone in the same company. 175–176
Internal locus of control, 274–276
Internalization A response to influence
tactics where the target agrees with and
becomes committed to the request. 420, 421
International corporations. See
Organizational Behavior (OB)
Internationally
Interpersonal citizenship behavior Going
beyond normal job expectations to assist,
support, and develop coworkers and
colleagues. 36–37
Interpersonal influence, 421
Interpersonal justice The perceived fairness
of the interpersonal treatment received by
employees from authorities. 204, 206–207
Interpersonal processes Teamwork
processes, such as motivating and confidence
building, that focus on the management of
relationships among team members. 384, 385
Intrinsic motivation Desire to put forth
work effort due to the sense that task
performance serves as its own reward. 167, 168
Introspection, 22
Introversion, 279
Intuition An emotional judgment based on
quick, unconscious, gut feelings. 242–244
method of intuition, 16
J
Job analysis A process by which an
organization determines requirements of
specific jobs. 33–34
Job characteristics theory A theory that
argues that five core characteristics (variety,
identity, significance, autonomy, and feedback)
combine to result in high levels of satisfaction
with the work itself. 100–103
assessing core job characteristics, 105
autonomy and, 102
feedback and, 102
growth need strength, 102, 103, 104
identity and, 101
knowledge and skill, 103
Reenergizing Employees After a Downsizing
(case), 540–542
significance and, 101, 102
variety and, 100
Job crafting Proactively shaping and
molding the characteristics contained within
one’s job. 103
Job Description Index (JDI), 114–115
Job enrichment When job duties and
responsibilities are expanded to provide
increased levels of core job characteristics. 103
Job in General (JIG) scale, 114–115
Job performance, 28–58 Employee
behaviors that contribute either positively
or negatively to the accomplishment of
organizational goals. 30–31
citizenship behavior and, 31, 35–39
compensation and, 184
counterproductive behavior and. See
Counterproductive behavior
dilemmas of, 30–31
influence and, 429–431
in integrative model of OB, 7, 8
job satisfaction and, 109–115
leadership and, 465–466
learning and, 253
meaning of “good performer,” 31–39, 44–45
motivation and, 180, 182, 184
organizational culture and, 527–529
organizational structure and, 498–499
performance management and, 46–49
power and, 429–431
social recognition and, 18–20
strategies to improve, 46–49
Final PDF to printer
557Glossary/Subject Index
coL27660_sidx_549-567.indd 557 11/03/17 01:18 PM
stress and, 134, 141–142, 144
task performance and, 31–35
team characteristics and, 358–359
team processes and, 392–395
trends affecting, 45–46
trust and, 218
Job satisfaction, 92–122 A pleasurable
emotional state resulting from the appraisal
of one’s job or job experiences. It represents
how a person feels and thinks about his or her
job. 94
citizenship behavior and, 111
conscientiousness and, 285–287
counterproductive behavior and, 111
emotions and, 108–109
importance of, 109–113
individual differences in, 109–110
in integrative model of OB, 8, 109–113
job characteristics theory, 100–103,
540–542 (case)
job performance and, 109–115
leadership and, 464
life satisfaction and, 111–115
mood and, 104–108
organizational commitment and, 113–115
organizational culture and, 528
power and influence in, 429–431
tracking, 113–115
values and, 94–109
work specialization and, 484
Job security, employee-employer relationship
and, 77–79
Job sharing, 144
Juries, decision making by, 380–381
Justice, 203–208 The perceived fairness of
an authority’s decision making. 197
distributive, 203, 204, 206
informational, 204, 207–208, 540–542 (case)
in integrative model of OB, 8
interpersonal, 204, 206–207
procedural, 204–205
K
Knowledge
explicit, 234–235, 236
tacit, 235–236
training and, 254
Knowledge and skill The degree to which
employees have the aptitude and competence
needed to succeed on their job. 102, 103
Knowledge of results A psychological
state indicating the extent to which employees
are aware of how well or how poorly they are
doing. 100
Knowledge transfer The exchange of
knowledge between employees. 254
Knowledge work Jobs that primarily involve
cognitive activity versus physical activity. 45
L
Laissez-faire leadership When the leader
avoids leadership duties altogether. 457, 458
Language The jargon, slang, and slogans
used within an organization. 512
Layoffs
informational justice and, 207–208,
540–542 (case)
in restructuring process, 500–501
Leader effectiveness, 444–463 The
degree to which the leader’s actions result
in the achievement of the unit’s goals,
the continued commitment of the unit’s
employees, and the development of mutual
trust, respect, and obligation in leader–
member dyads. 446
in integrative model of OB, 9, 464–466
leader-member exchange (LMX) theory of,
444–446
leader style and. See Leader styles
traits, 446–447
Leader emergence The process of
becoming a leader in the first place. 446–447
Leader-member exchange theory
(LMX) A theory describing how leader–
member relationships develop over time on a
dyadic basis. 444–446
Leader-staff teams A type of team
that consists of members who make
recommendations to the leader who is
ultimately responsible for team decisions. 351
Leader styles, 442–451
autocratic, 447–448, 449–450
conflict resolution and, 423–426
consultative, 448, 450
delegative, 448–449, 450
effectiveness across cultures, 459
effectiveness of, 442–451
facilitative, 448, 450
in integrative model of OB, 9, 464–466
span of control and, 483, 484–486
Leadership, 442–478. See also
Power The use of power and influence to
direct the activities of followers toward goal
achievement. 412, 444
changes in, 523–524
day-to-day behaviors, 452–456
decision-making styles, 447–451
in holocracy, 411, 412, 418, 420–421, 434
importance of, 464–466
influence and, 416–420
leader effectiveness, 444–463
leader emergence, 446–447
leader-member exchange (LMX) theory,
444–446
leader styles. See Leader styles
Leading in a Hostile Environment (case),
546–548
life cycle theory of, 453–456
Managing Commitment in Demanding Jobs
(case), 543–545
negotiation and, 426–429
power and, 412–416
Project GLOBE (Global Leadership
and Organizational Behavior
Effectiveness), 281–283, 459
Reenergizing Employees After a Downsizing
(case), 540–542
substitutes for leadership model, 464–466
time-driven model of, 449–451
training programs, 456, 466
transformational leadership behaviors,
456–461, 462
Learning, 232–262 A relatively permanent
change in an employee’s knowledge or skill
that results from experience. 234
importance of, 253
in integrative model of OB, 8–9, 253
job performance and, 253
methods of, 236–241
goal orientation, 241, 242
observation, 239–240
reinforcement, 236–239
organizational commitment and, 253
training and, 254
types of knowledge, 234–236
variations in, 234–241
Learning orientation A predisposition
or attitude according to which building
competence is deemed more important by an
employee than demonstrating competence. 241
Legitimate power A form of organizational
power based on authority or position. 413, 415
Life cycle theory of leadership A theory
stating that the optimal combination of
initiating structure and consideration depends
on the readiness of the employees in the work
unit. 453–456
Life satisfaction The degree to which
employees feel a sense of happiness with their
lives in general. 111
assessing happiness, 113
job satisfaction and, 111–115
Final PDF to printer
558 Glossary/Subject Index
coL27660_sidx_549-567.indd 558 11/03/17 01:18 PM
Living Wage Calculator (MIT), 5
Locus of control Whether one believes
the events that occur around him or her
are self-driven or driven by the external
environment. 274–276
Lone wolves Employees with low
commitment levels and high task performance
levels who focus on their own career rather
than what benefits the organization. 70
Long breaks, 72
Looking busy, 72
Loyalty A passive response to a negative
work event in which one publicly supports the
situation but privately hopes for improvement. 70
M
Machiavellianism, 422
Management by objectives (MBO) A
management philosophy that bases employee
evaluations on whether specific performance
goals have been met. 46–47
Management teams A relatively permanent
team that participates in managerial-level tasks
that affect the entire organization. 339–340,
356–358
Masculinity-femininity The degree to which
a culture values stereotypically male traits
(masculinity) or stereotypically female traits
(femininity). 281–283
Mathematical reasoning, 309–310
Matrix structures A complex form of
organizational structure that combines a
functional and multi-divisional grouping. 495–497
Leading in a Hostile Environment (case),
546–548
Maximum performance Performance in
brief, special circumstances that demand a
person’s best effort. 285–287
Meaning of money The idea that money
can have symbolic value (e.g, achievement,
respect, freedom) in addition to economic
value. 168, 169
Meaningfulness Captures the value of a
work goal or purpose, relative to a person’s
own ideals and passions. 179
Meaningfulness of work A psychological
state reflecting one’s feelings about work tasks,
goals, and purposes, and the degree to which
they contribute to society and fulfill one’s
ideals and passions. 100
Mechanistic organizations Efficient, rigid,
predictable, and standardized organizations
that thrive in stable environments. 488–489
Mediation A process by which a third party
facilitates a dispute resolution process but
with no formal authority to dictate a solution.
431–432
Mental models The degree to which team
members have a shared understanding of
important aspects of the team and its task.
390–392
Mentoring The process by which a junior-
level employee develops a deep and long-
lasting relationship with a more senior-level
employee within the organization. 531
Mercenary culture An organizational
culture type in which employees think alike but
are not friendly to one another. 514, 515
Mergers and acquisitions, 39–40, 524–526,
546–548 (case)
Merit pay, 183, 184, 205
Message, 386
Meta-analysis A method that combines
the results of multiple scientific studies by
essentially calculating a weighted average
correlation across studies (with larger studies
receiving more weight). 20
Method of authority When people hold
firmly to some belief because some respected
official, agency, or source has said it is so. 16
Method of experience When people hold
firmly to some belief because it is consistent
with their own experience and observations. 16
Method of intuition When people hold
firmly to some belief because it “just stands to
reason”—it seems obvious or self-evident. 16
Method of science When people accept
some belief because scientific studies have
tended to replicate that result using a series of
samples, settings, and methods. 16–20
Missing meetings, 72
Mission analysis, 384
Mission statements
espoused values and, 511, 513
goal interdependence and, 348, 349
Monitoring progress toward goals, 384
Moods States of feeling that are mild in
intensity, last for an extended period of time,
and are not directed at anything. 105–108
extraversion and, 273
job satisfaction and, 104–108
neuroticism and, 273
Moonlighting, 72
Moral attentiveness The degree to which
people chronically perceive and consider issues
of morality during their experiences. 211–212
Moral awareness When an authority
recognizes that a moral issue exists in a
situation. 210–212
Moral identity The degree to which a person
views himself or herself as a moral person. 215
Moral intensity The degree to which an issue
has ethical urgency. 211
Moral intent An authority’s degree of
commitment to the moral course of action. 215
Moral judgment When an authority can
accurately identify the “right” course of action.
212–215
Moral principles Prescriptive guides for
making moral judgments. 213–215
Motivation, 160–193 A set of energetic
forces that determine the direction, intensity, and
persistence of an employee’s work effort. 162
citizenship behavior and, 180–181, 182
compensation and, 167–168, 169, 176–177,
182–184
counterproductive behavior and, 180, 182
cultural differences in, 174, 179–180
effort in, 162
engagement in, 163
equity theory of, 173–177, 540–542 (case)
expectancy theory of, 164–170
extrinsic, 167, 168
goal setting theory of, 170–173
importance of, 180–182
inspirational, 460
in integrative model of OB, 8, 180–182
as interpersonal process, 385
intrinsic, 167, 168
job performance and, 180, 182, 184
organizational commitment and, 180–181
power and influence in, 429
psychological empowerment and, 177–180
Motivational loss Process loss due to team
members’ tendency to put forth less effort on
team tasks than they could. 377–378
Final PDF to printer
559Glossary/Subject Index
coL27660_sidx_549-567.indd 559 11/03/17 01:18 PM
Multi-divisional structure An organizational
form in which employees are grouped by
product, geography, or client. 492–497
Multicultural personality questionnaire, 284
Multicultural teams, 356
Multinational teams, 382
Myers-Briggs Type Indicator (MBTI) A
personality framework that evaluates people
on the basis of four types or preferences:
extraversion versus introversion, sensing versus
intuition, thinking versus feeling, and judging
versus perceiving. 279
N
Narrow/tall span of control, 484–486
Near vision, 319, 320
Needs Groupings or clusters of outcomes
viewed as having critical psychological or
physiological consequences. 166–167
Negative affectivity A dispositional
tendency to experience unpleasant moods such
as hostility, nervousness, and annoyance. 274
Negative emotions Employees’ feelings of
fear, guilt, shame, sadness, envy, and disgust.
108–109
Negative life events Events such as a
divorce or death of a family member that tend
to be appraised as a hindrance. 131
Negative reinforcement An unwanted
outcome is removed following a desired
behavior. 237
Neglect A passive, destructive response to a
negative work event in which one’s interest and
effort in work decline. 70
Negotiation, 426–429 A process in which
two or more interdependent individuals
discuss and attempt to reach agreement about
their differences. 426
in integrative model of OB, 9
negotiator biases in, 429
stages of, 428
strategies for, 426–427
NEO Five-Factor Inventory (NEO-FFI), 289
Network structure The pattern of
communication that occurs regularly among
each member of a team. 388–389
Networked culture An organizational
culture type in which employees are friendly
to one another, but everyone thinks differently
and does his or her own thing. 514, 515
Networking ability, 421
Neuroticism One of the “Big Five” dimensions
of personality reflecting traits like being nervous,
moody, emotional, insecure, jealous, and
unstable. 266, 267, 273, 274–276
Neutral Objects Questionnaire (Gripe Index),
275
Neutralizers Situational characteristics that
reduce the importance of the leader and do
not improve employee performance in any way.
464–466
Newcomer orientation A common form
of training during which new hires learn more
about the organization. 530
Night vision, 319, 320
Noise, 387
Nominal group technique A team process
used to generate creative ideas, whereby team
members individually write down their ideas
and then take turns sharing them with the
group. 379–380
Nonprogrammed decisions Decisions
made by employees when a problem is new,
complex, or not recognized. 243, 244
Normative commitment, 68–69 An
employee’s desire to remain a member of
an organization due to a feeling of obligation.
63–64
job satisfaction and, 111
strategies to improve, 81
volunteering and, 69
Norming The third stage of team
development, during which members realize
that they need to work together to accomplish
team goals and consequently begin to
cooperate. 343, 344
Number facility, 309–310
Numerous small decisions People making
many small decisions every day that are
invisible to competitors. 12
O
Observable artifacts Aspects of an
organization’s culture that employees and
outsiders can easily see or talk about. 511–513
Observation, in learning process, 239–240
Occupational Information Network
(O*NET) An online database containing job
tasks, behaviors, required knowledge, skills,
and abilities. 34–35, 307, 318
Olympics, 166
Openness to experience One of the
“Big Five” dimensions of personality reflecting
traits like being curious, imaginative, creative,
complex, refined, and sophisticated. 266, 267,
276–278
Operant conditioning, 236–241
contingencies of reinforcement, 237–238
schedules of reinforcement, 238–239
Oral comprehension, 307, 309
Oral expression, 308, 309
Organic organizations Flexible, adaptive,
outward-focused organizations that thrive in
dynamic environments. 489
Organizational behavior (OB), 4–27 Field
of study devoted to understanding, explaining,
and ultimately improving the attitudes and
behaviors of individuals and groups in
organizations. 6–7
challenges of, 14–15
conceptual argument for, 10–12
importance of, 9–15
integrative model of, 7–9
research evidence on, 7, 12–20
Organizational Behavior (OB) Assessments
of affective commitment, 66
Big Five, 268–269
of centralization, 488
of cohesion, 391
of core job characteristics, 105
of creativity culture, 518
of emotional intelligence, 317
of goal orientation, 242
of helping behavior, 38
of initiating structure and consideration, 454
of introspection, 22
of the meaning of money, 169
of political skill, 422
of team interdependence, 346
of trust propensity, 199
of Type A Behavior Pattern, 138
Organizational Behavior (OB) at the
Bookstore
Deep Work (Newport), 163
Gritt (Duckworth), 287
How to Have a Good Day (Webb), 15
Humility is the New Smart (Hess and
Ludwig), 316
Inclusion (Brown), 341
Mastering Civility (Porath), 43
Originals (Grant), 524
Final PDF to printer
560 Glossary/Subject Index
coL27660_sidx_549-567.indd 560 11/03/17 01:18 PM
Organizational Behavior (OB) at the
Bookstore—Cont.
Peak (Ericsson and Pool), 235
The Power of Meaning (Smith), 101
Pre-Suasion (Cialdini), 417
Radical Candor (Scott), 202
The Silo Effect (Tett), 495
Smart Collaboration (Gardner), 377
Superbosses (Finkelstein), 461
Widgets (Wagner), 80
Work Without Stress (Roger and Petrie), 148
Organizational Behavior (OB) Internationally
assessing happiness, 113
citizenship behavior, 40
cross-cultural organizational behavior, 10
cultural differences in motivation, 174
cultural differences in placing responsibility,
250
cultural intelligence, 308
effectiveness of leader styles across cultures,
459
ethical ranking by country, 209
expatriate stress, 134
guanxi (influence) in China, 419
international mergers and acquisitions, 525
multicultural personality questionnaire, 284
multicultural teams, 356
multinational teams, 382
organizational commitment in multinational
corporations, 78
organizational structure, 496
Organizational Behavior (OB) on Screen
Arrival, 350
The Big Short, 245
Bridge of Spies, 427
Chef, 71
The Circle, 521
Deepwater Horizon, 129
The Founder, 216
Hidden Figures, 311
The Imitation Game, 485
La La Land, 272
The Martian, 451
Moneyball, 21
Paterson, 99
Spotlight, 383
Star Trek Beyond, 178
Sully, 36
Organizational chart A drawing that
represents every job in the organization and
the formal reporting relationships between
those jobs. 482–483, 492, 493, 497
Organizational citizenship
behavior Going beyond normal expectations
to improve operations of the organization, as
well as defending the organization and being
loyal to it. 37–38
Organizational commitment, 60–89 An
employee’s desire to remain a member of an
organization. 62
employee-employer relationship and,
77–79, 135
employee task performance levels, 70–72
focus of commitment, 65
influence and, 429–431
in integrative model of OB, 7, 8
job satisfaction and, 113–115
leadership and, 465–466
Leading in a Hostile Environment (case),
546–548
learning and, 253
Managing Commitment in Demanding Jobs
(case), 543–545
meaning of “committed,” 63, 75, 76
motivation and, 180–181
organizational culture and, 527–529,
546–548 (case)
organizational structure and, 498–499
power and, 429–431
social recognition and, 18–20
strategies to improve, 79–81
stress and, 135, 141–142, 144
team characteristics and, 358–359
team processes and, 392–395
trends affecting, 62, 77–79
trust and, 217–219
turnover and, 62, 66–68, 74, 77–79, 81
types of commitment, 63–69
affective. See Affective commitment
continuance, 63–64, 66–68, 81
normative. See Normative commitment
withdrawal behavior, 62, 69–75, 81
workforce diversity and, 75–77
Organizational culture, 508–539. See
also Organizational Behavior (OB)
Internationally The shared social knowledge
within an organization regarding the rules,
norms, and values that shape the attitudes and
behaviors of its employees. 510
changing, 523–526
components of, 510–514
culture strength, 517–520
general culture types, 514
importance of, 527–529
in integrative model of OB, 9, 527–529
Leading in a Hostile Environment (case),
546–548
maintaining, 520–523
person-organization fit and, 528
socialization process in, 529–531
specific culture types, 514–517
variations in, 518, 526–527, 528
Organizational design The process of
creating, selecting, or changing the structure
of an organization. 489–491
Organizational politics Individual actions
directed toward the goal of furthering a
person’s own self-interests. 421–423
Organizational power, 413–414, 429, 430
coercive, 414, 415
legitimate, 413, 415
reward, 413–414, 415
Organizational structure, 480–507
Formally dictates how jobs and tasks are
divided and coordinated between individuals
and groups within the company. 482
bureaucratic structures, 491–497
common forms, 491–497
elements of, 483–489
importance of, 498–499
in integrative model of OB, 9, 498–499
organizational charts, 482–483, 492,
493, 497
organizational design and, 489–491
restructuring and, 499, 500–501, 540–542
(case)
simple structures, 491, 492
variations in, 482–483, 497–498, 499
Orientation programs, 530
Orienter role, 351, 352
Originality, 309, 310
Other awareness The ability to recognize
and understand the emotions that other people
are feeling. 314
Outcome interdependence The degree
to which team members share equally in the
feedback and rewards that result from the team
achieving its goals. 348–349, 359–360
P
Parallel teams A team composed
of members from various jobs within
the organization that meets to provide
recommendations about important issues.
340–341
Participating When the leader shares ideas
and tries to help the group conduct its affairs.
455
Passive management-by-exception When
the leader waits around for mistakes and
errors, then takes corrective action as
necessary. 457, 458
Past accomplishments The level of success
or failure with similar job tasks in the past. 165
Final PDF to printer
561Glossary/Subject Index
coL27660_sidx_549-567.indd 561 11/03/17 01:18 PM
Pay. See Compensation systems
Pay satisfaction Employees’ feelings about
the compensation for their jobs. 95, 96
Perceived organizational support The
degree to which employees believe that the
organization values their contributions and
cares about their well-being. 79–81
Perceptual ability The capacity to perceive,
understand, and recall patterns of information.
309, 311–312
Perceptual speed, 309
Performance-avoid orientation A
predisposition or attitude by which employees
focus on demonstrating their competence so
that others will not think poorly of them. 241
Performance management
job performance and, 46–49
Performance-prove orientation A
predisposition or attitude by which employees
focus on demonstrating their competence so
that others think favorably of them. 241
Performing The fourth stage of team
development, during which members are
comfortable working within their roles, and the
team makes progress toward goals. 344
Person-organization fit The degree to
which a person’s values and personality match
the culture of the organization. 528
Personal aggression Hostile verbal
and physical actions directed toward other
employees. 42
Personal appeals An influence tactic in
which the requestor asks for something based
on personal friendship or loyalty. 418–419
Personal Characteristics Inventory (PCI), 289
Personal clarification Training in which
members simply receive information regarding
the roles of the other team members. 396
Personal development Participation in
activities outside of work that foster growth
and learning. 132
Personal power, 413, 414–415, 429, 430
expert, 414–415
referent, 415
Personality, 264–303 The structures and
propensities inside a person that explain his
or her characteristic patterns of thought,
emotion, and behavior. Personality reflects
what people are like and creates their social
reputation. 266
Big Five taxonomy, 266–278, 540–542
(case)
changes over life span, 267–270
importance of, 285–287
in integrative model of OB, 9, 285–287
integrity tests, 288–291
multicultural personality questionnaire, 284
Myers-Briggs Type Indicator (MBTI), 279
personality tests in hiring process, 287–291
RIASEC model, 279–280
team member, 353–354, 355–356
twin studies, 267
Personality Research Form (PRF), 289
Physical ability, 306, 318–321
flexibility and coordination, 318, 319
physical cultural intelligence, 308
psychomotor, 318–320
sensory, 319, 320
stamina, 318, 319
strength, 318, 319
team member, 352–353
Physical structures The organization’s
buildings and internal office designs. 511–512
Physical withdrawal A physical escape
from the work environment. 72–75
Physiological strain, 135–137
Piece-rate compensation plans, 183
Pleasantness The degree to which an
employee is in a good versus bad mood. 106
Political deviance Behaviors that intentionally
disadvantage other individuals. 41–42
Political skill The ability to understand others
and the use of that knowledge to influence
them to further personal or organizational
objectives. 421–422
Pooled interdependence A form of task
independence in which group members
complete their work assignments independently,
and then their work is simply added together to
represent the group’s output. 345, 347
Positional modeling Training that involves
observations of how other team members
perform their roles. 396
Positional rotation Training that gives
members actual experience carrying out the
responsibilities of their teammates. 396
Positive affectivity A dispositional tendency
to experience pleasant, engaging moods such as
enthusiasm, excitement, and elation. 273–274
Positive emotions Employees’ feelings of
joy, pride, relief, hope, love, and compassion.
108–109
Positive life events Events such as marriage
or the birth of a child that tend to be appraised
as a challenge. 132
Positive reinforcement When a positive
outcome follows a desired behavior. 237
Potency A team state reflecting the degree
of confidence among team members that the
team can be effective across situations and
tasks. 390
Power, 410–440 The ability to influence
the behavior of others and resist unwanted
influence in return. 412
acquiring, 412–416
conflict resolution and, 423–426
contingency factors, 416
guidelines for using, 415
importance of, 429–431
influence and, 416–420
in integrative model of OB, 9, 429–431
Leading in a Hostile Environment (case),
546–548
negotiation and, 426–429
organizational politics and, 420–423
types of, 413–416
organizational, 413–414, 415, 429, 430
personal, 413, 414–415, 429, 430
variations in, 413
Power distance The degree to which a
culture prefers equal power distribution
(low power distance) or an unequal power
distribution (high power distance). 281–283
Preconventional stage of moral development
(Kohlberg), 213
Preparation The first stage of the negotiation
process, during which each party determines
its goals for the negotiation. 428
Prescriptive ethics, 208
Presenteeism, 142
Pressure An influence tactic in which the
requestor attempts to use coercive power
through threats and demands. 418, 419
Primary appraisal Evaluation of whether a
demand is stressful and, if it is, the implications
of the stressor in terms of personal goals and
well-being. 127–132
Final PDF to printer
562 Glossary/Subject Index
coL27660_sidx_549-567.indd 562 11/03/17 01:18 PM
Principled stage of moral development
(Kohlberg), 213–214
Problem-focused coping Behaviors and
cognitions of an individual intended to manage
the stressful situation itself. 133
Problem sensitivity, 309, 310
Procedural justice The perceived fairness of
decision-making processes. 204–205
Procedural-technician role, 352
Process gain When team outcomes are
greater than expected based on the capabilities
of the individual members. 376
Process loss When team outcomes are less
than expected based on the capabilities of the
individual members. 376
Product structure An organizational form in
which employees are grouped around different
products that the company produces. 493–494
Production blocking A type of coordination
loss resulting from team members having to
wait on each other before completing their
own part of the team task. 377
Production deviance Intentionally reducing
organizational efficiency of work output. 41
Profit sharing, 183, 184
Programmed decisions Decisions that
are somewhat automatic because the decision
maker’s knowledge allows him or her to
recognize the situation and the course of
action to be taken. 241–244
Progression model A model indicating that
the various withdrawal behaviors are positively
correlated; engaging in one type of withdrawal
makes one more likely to engage in other
types. 74–75, 81
Project GLOBE A collection of 170 researchers
from 62 cultures who examine the impact of
culture on the effectiveness of leader attributes,
behaviors, and practices. 281–283, 459
Project teams A team formed to take on
one-time tasks, most of which tend to be
complex and require input from members
from different functional areas. 340, 341–342,
356–358
Projection bias The faulty perception by
decision makers that others think, feel, and act
the same way as they do. 247
Promotion satisfaction Employees’ feelings
about how the company handles promotions.
96–97
Property deviance Behaviors that harm the
organization’s assets and possessions. 39–41,
211–212, 214–215
Psychological contracts Employee beliefs
about what employees owe the organization
and what the organization owes them. 79
Psychological empowerment An energy
rooted in the belief that tasks are contributing
to some larger purpose. 177–180
Reenergizing Employees After a Downsizing
(case), 540–542
Psychological safety, 389
Psychological strain, 136, 137
Psychological withdrawal Mentally
escaping the work environment. 72, 73, 74–75
Psychomotor ability Capabilities associated
with manipulating and controlling objects.
318–320
Punctuated equilibrium A sequence of
team development during which not much
gets done until the halfway point of a project,
after which teams make necessary changes to
complete the project on time. 344–345
Punishment When an unwanted outcome
follows an unwanted behavior. 238
Q
Quantitative ability Capabilities associated
with doing basic mathematical operations
and selecting and applying formulas to solve
mathematical problems. 309–310
Quitting, 74
R
Ratio bias effect, 248
Rational decision-making model A step-
by-step approach to making decisions that is
designed to maximize outcomes by examining
all available alternatives. 244–245
bounded rationality versus, 246
Rational persuasion The use of logical
arguments and hard facts to show someone
that a request is worthwhile. 417, 418
Readiness The degree to which employees
have the ability and the willingness to
accomplish their specific tasks. 453–455
Realistic job previews (RJPs) The
process of ensuring that a potential employee
understands both the positive and negative
aspects of the potential job. 529–530
Reality shock A mismatch of information
that occurs when an employee finds that
aspects of working at a company are not what
the employee expected it to be. 522
Reasoning ability A diverse set of abilities
associated with sensing and solving problems
using insight, rules, and logic. 309, 310
Receiver, 386
Recency bias, 248
Reciprocal interdependence A form of
task interdependence in which group members
interact with only a limited subset of other
members to complete the team’s work. 345, 347
Recognition awards, 183
Recognition seeker role, 352
Referent power A form of organizational
power based on the attractiveness and
charisma of the leader. 415
Reinforcement, 236–239
in behavioral modeling, 239–240
contingencies of, 237–238
schedules of, 238–239
Relational contracts Psychological contracts
that focus on a broad set of open-ended and
subjective obligations. 79
Relationship conflict Disagreements among
team members with regard to interpersonal
relationships or incompatibilities in personal
values or preferences. 385
Relaxation techniques, 146
Reliability, 22
Representativeness bias, 248
Reputation The prominence of an organization’s
brand in the minds of the public and the
perceived quality of its goods and services. 196
Resistance When a target refuses to perform
a request and puts forth an effort to avoid
having to do it. 420
to influence, 420, 421
Resource-based view A model that argues
that rare and inimitable resources help firms
maintain competitive advantage. 10–11
Response orientation, 319, 320
Response time, 319, 320
Responsibility for outcomes A
psychological state indicating the degree to
Final PDF to printer
563Glossary/Subject Index
coL27660_sidx_549-567.indd 563 11/03/17 01:18 PM
which employees feel they are key drivers of
the quality of work output. 100
cultural differences in placing responsibility,
250
Restructuring The process of changing an
organization’s structure. 499, 500–501
Reenergizing Employees After a Downsizing
(case), 540–542
Reward power A form of organizational
power based on the control of resources or
benefits. 413–414, 415
RIASEC model An interest framework
summarized by six different personality types
including realistic, investigative, artistic, social,
enterprising, and conventional. 279–280
Rituals The daily or weekly planned routines
that occur in an organization. 512–513
Role The behavior a person is generally
expected to display in a given context. 350
team member, 350–352
Role ambiguity When an individual has a
lack of direction and information about what
needs to be done. 128–129
Role conflict When others have conflicting
expectations of what an individual needs to
do. 128
Role making The phase in a leader–follower
relationship when a follower voices his or her
own expectations for the relationship, resulting
in a free-flowing exchange of opportunities and
resources for activities and effort. 444–446
Role overload When an employee has too
many demands to work effectively. 129–130
Role taking The phase in a leader–follower
relationship when a leader provides an
employee with job expectations and the follower
tries to meet those expectations. 444–446
Routine task performance Well-known or
habitual responses by employees to predictable
task demands. 32
Rule of One-Eighth The belief that at best
one-eighth, or 12 percent, of organizations will
actually do what is required to build profits by
putting people first. 14
S
Sabbaticals, 144
Sabotage Purposeful destruction of
equipment, organizational processes, or
company products. 39
Safety culture A specific culture type
focused on the safety of employees. 516
SAT (Scholastic Assessment Test), 307, 322
Satisfaction with the work itself, 96, 97–103
Satisficing When a decision maker chooses
the first acceptable alternative considered. 246
Schedules of reinforcement The timing of
when contingencies are applied or removed.
238–239
Scientific management, 98–99
Scientific method, 16–20
Scout activities Boundary-spanning activities
that are intended to obtain information about
technology, competitors, or the broader
marketplace. 382
Secondary appraisal When people determine
how to cope with the various stressors they face.
132–133
Selective perception The tendency for
people to see their environment only as it
affects them and as it is consistent with their
expectations. 247
Self-awareness The ability to recognize and
understand the emotions in oneself. 313
Self-confessor role, 352
Self-determination A sense of choice in the
initiation and continuation of work tasks. 179
Self-efficacy The belief that a person has the
capabilities needed to perform the behaviors
required on some task. 165
in goal setting theory, 170
Self-serving bias When one attributes one’s
own failures to external factors and success to
internal factors. 249
Self-set goals The internalized goals that
people use to monitor their own progress. 170
Selling When the leader explains key issues
and provides opportunities for clarification. 455
Sender, 386
Sensory ability Capabilities associated with
vision and hearing. 319, 320
Sequential interdependence A form of
task interdependence in which group members
perform different tasks in a prescribed
sequence, and members depend on only
the member who comes before them in the
sequence. 345, 347
Service work Providing a service that
involves direct verbal or physical interactions
with customers. 45–46
Sexual harassment, 42, 516
Short-term vs. long-term orientation The
degree to which a culture stresses values that
are past- and present-oriented (short-term
orientation) or future-oriented (long-term
orientation). 281–283
Sick leave, 73–74
Significance The degree to which a job
really matters and impacts society as a whole.
101, 102
Similarity-attraction approach A
theory explaining that team diversity can be
counterproductive because people tend to
avoid interacting with others who are unlike
them. 354–355
Simple structures An organizational
form that features one person as the central
decision-making figure. 491, 492
Situational strength The degree to which
situations have clear behavioral expectations,
incentives, or instructions that make differences
between individuals less important. 286
Six Sigma, 29
Slacker role, 352
S.M.A.R.T. goals Acronym that stands for
Specific, Measurable, Achievable, Results-
Based, Time-Sensitive goals. 173
Social astuteness, 421
Social exchange Work relationships that
are characterized by mutual investment, with
employees willing to engage in “extra mile”
sorts of behaviors because they trust that their
efforts will eventually be rewarded. 218
Social identity theory A theory that people
identify themselves based on the various
groups to which they belong and judge others
based on the groups they associate with. 247
Social influence model A model that
suggests that employees with direct linkages
to coworkers who leave the organization will
themselves become more likely to leave. 65
Final PDF to printer
564 Glossary/Subject Index
coL27660_sidx_549-567.indd 564 11/03/17 01:18 PM
Social learning theory Theory that argues
that people in organizations learn by observing
others. 239–240
Social loafing A type of motivational
loss resulting from members feeling less
accountable for team outcomes relative to
independent work that results in individually
identifiable outcomes. 378, 379
Social network diagrams, 65, 67, 76
Social networking systems, 49, 389
Social support The help people receive from
others when they are confronted with stressful
demands. 139
Socialization The primary process by which
employees learn the social knowledge that
enables them to understand and adapt to the
organization’s culture. 520–523
anticipatory stage, 521–522
encounter stage, 522
managing, 529–531
reality shock, 522
understanding and adaptation, 522–523
Socializing, 72
Socially complex resources Resources
created by people, such as culture, teamwork,
trust, and reputation. The source of competitive
advantage is known, but the method of
replicating the advantage is unclear. 12
Span of control Represents how many
employees each manager in the organization
has responsibility for. 483, 484–486
Spatial ability Capabilities associated
with visual and mental representation and
manipulation of objects in space. 309, 310
Spatial orientation, 309, 310
Specific and difficult goals Goals that
stretch an employee to perform at his or her
maximum level while still staying within the
boundaries of his or her ability. 170–171
Speech recognition, 319, 320
Speed and flexibility of closure, 309, 311–312
Sportsmanship Maintaining a positive
attitude with coworkers through good and bad
times. 37
Staff validity The degree to which team
members make good recommendations to the
team leader. 381
Stamina The ability of a person’s lungs and
circulatory system to work efficiently while
he or she is engaging in prolonged physical
activity. 318, 319
Standard setter role, 352
Stars Employees with high commitment
levels and high task performance levels who
serve as role models within the organization.
70, 72
Static strength, 318, 319
Status striving A strong desire to obtain
power and influence within a social structure
as a means of expressing one’s personality. 273
Stereotypes Assumptions made about others
based on their social group membership. 247
surface-level diversity and, 355
Stories Anecdotes, accounts, legends, and
myths passed down from cohort to cohort
within an organization. 512
Storming The second stage of team
development, during which conflict occurs due
to members’ ongoing commitment to ideas
they bring with them to the team. 343–344
Strain Negative consequences of the stress
response. 127
experience of, 135–137
reducing, 146–148
types of, 135–137
Strategic management Field of study
devoted to exploring the product choices
and industry characteristics that affect an
organization’s profitability. 7
Strategy formulation, 384
Strength The degree to which the body is
capable of exerting force. 318, 319
Stress, 124–159 The psychological
response to demands when there is something
at stake for the individual, and where coping
with these demands would tax or exceed the
individual’s capacity or resources. 127
assessing, 143
coping with stressors, 132–135
health care costs and, 143
importance of, 140–142
job performance and, 134, 141–142, 144
managing, 139, 143–148
organizational commitment and, 135,
141–142, 144
organizational culture and, 528
relative job rankings, 126
of restructuring, 499, 500–501, 540–542
(case)
transactional theory of, 127–140, 543–545
(case)
Type A Behavior Pattern and, 137–139
types of stressors, 128–132
Stress audit, 143
Stressors Demands that cause the stress
response. 127
challenge, 128, 130–131, 132, 141–142,
143–144
coping with, 132–135
differential exposure to, 274
differential reactivity to, 274
hindrance, 128, 131–132, 141, 143–144
Managing Commitment in Demanding Jobs
(case), 543–545
reducing, 143–144
stressful life events, 132
types of, 128–132
Subcultures A culture created within a
small subset of the organization’s employees.
519, 520
Substance abuse The abuse of drugs or
alcohol before coming to work or while on the
job. 41
Substitutability The degree to which people
have alternatives in accessing the resources a
leader controls. 416
Substitutes Situational characteristics that
reduce the importance of the leader while
simultaneously providing a direct benefit to
employee performance. 464
Substitutes for leadership model A
model that suggests that characteristics of the
situations can constrain the influence of the
leader, which makes it more difficult for the
leader to influence employee performance.
464–466
Supervision satisfaction Employees’
feelings about their boss, including his or her
competency, communication, and personality.
96, 97
Surface-level diversity Diversity of
observable attributes such as race, gender,
ethnicity, and age. 355
Survivor syndrome, 77–78
Suspension, 238
Sustainability culture A specific culture
type focused on promoting sustainability both
inside and outside of the organization. 516–517
Symbols The images an organization uses,
which generally convey messages. 511
Final PDF to printer
565Glossary/Subject Index
coL27660_sidx_549-567.indd 565 11/03/17 01:18 PM
Synergy, 376–378, 392, 393
Systems monitoring, 384
T
Tacit knowledge Knowledge that employees
can only learn through experience. 235–236
Tardiness, 72
Task complexity The degree to which the
information and actions needed to complete a
task are complicated. 172
Task conflict Disagreements among
members about the team’s task. 385
Task coordinator activities Boundary-
spanning activities that are intended to
coordinate task-related issues with people or
groups in other functional areas. 382
Task interdependence The degree to which
team members interact with and rely on other
team members for information, materials, and
resources needed to accomplish work for the
team. 345–348, 349
Task performance Employee behaviors that
are directly involved in the transformation
of organizational resources into the goods or
services that the organization produces. 31–35
adaptive, 32
creative, 32–33
employee task performance levels, 70–72
job analysis and, 33–34
Leading in a Hostile Environment (case),
546–548
organizational culture and, 528–529
Reenergizing Employees After a Downsizing
(case), 540–542
routine, 32
Task strategies Learning plans and
problem-solving approaches used to achieve
successful performance. 170
Taskwork processes The activities of
team members that relate directly to the
accomplishment of team tasks. 378–383
boundary spanning, 381–383
creative behavior, 378–380
decision making, 380–381
Team(s) Two or more people who work
interdependently over some time period to
accomplish common goals related to some
task-oriented purpose. 338
characteristics of. See Team characteristics
extent of use, 338–339
management teams, 339–340, 356–358
processes of. See Team processes
stages of development, 343–345
training, 395–397
Team building Fun activities that facilitate
team problem solving, trust, relationship
building, and the clarification of role
responsibilities. 397
Team-building roles Behaviors that directly
facilitate the accomplishment of team tasks.
351, 352
Team characteristics, 336–372
commitment and, 358–359
compensation and, 359–360
composition, 349–357
importance of, 358–359
in integrative model of OB, 9
interdependence, 345–349, 357,
358–360
performance and, 358–359
types of, 339–345, 357
Team composition The mix of the various
characteristics that describe the individuals
who work in the team. 349–357
diversity in. See Team diversity
in integrative model of OB, 9, 358–359
member ability, 352–353
member personality, 353–354, 355–356
member roles, 350–352
team size, 356–358
Team diversity The degree to which team
members are different from one another.
354–356
in integrative model of OB, 9
Managing Commitment in Demanding Jobs
(case), 543–545
multicultural teams, 356
multinational teams, 382
as team characteristic, 338–339
Team process training The use of team
experiences that facilitates the team’s ability
to function and perform more effectively as an
intact unit. 396–397
Team processes, 374–409 The different
types of activities and interactions that occur
within a team as the team works toward its
goals. 376
communication, 376, 386–389, 395
importance of, 392–395
in integrative model of OB, 9, 392–395
job performance and, 392–395
organizational commitment and, 392–395
process gain/loss and, 376–378
synergy in, 376–378, 392, 393
taskwork, 378–383
team states, 389–392
training teams, 395–397
Team states Specific types of feelings and
thoughts that coalesce in the minds of team
members as a consequence of their experience
working together. 389–392
cohesion, 389–390, 391
mental models, 390–392
potency, 390
transactive memory, 392
Team task roles Behaviors that directly
facilitate the accomplishment of team tasks.
351, 352
Team viability Team commitment; the
likelihood a team can work together effectively
into the future. 358
Teamwork processes The interpersonal
activities that promote the accomplishment
of team tasks but do not involve task
accomplishment itself. 384–385
action, 384–385
interpersonal, 384, 385
transition, 384
Technology The method by which an
organization transforms inputs to outputs. 490
e-mail, 343, 387
group decision support systems, 382
in mergers and acquisitions, 526
social networking systems, 49, 389
virtual teams and, 343
Telecommuting, 146
Teleological principles, 214
Telling When the leader provides specific
instructions and closely supervises
performance. 453–455
Theft Stealing company products or
equipment from the organization. 41
integrity tests and, 289–291
Theory A collection of verbal and symbolic
assertions that specify how and why variables
are related, as well as the conditions in which
they should (and should not) be related. 16–17
Time-driven model of leadership A model
that suggests that seven factors, including
the importance of the decision, the expertise
of the leader, and the competence of the
followers, combine to make some decision-
making styles more effective than others in a
given situation. 449–451
Final PDF to printer
566 Glossary/Subject Index
coL27660_sidx_549-567.indd 566 11/03/17 01:18 PM
Time pressure The sense that the amount
of time allotted to do a job is not quite enough.
130
Training A systematic effort by organizations
to facilitate the learning of job-related
knowledge and behavior. 254
applying emotional intelligence in, 315
behavior modeling, 254
cross-training, 396
leadership training programs, 456, 466
in learning process, 254
organizational commitment and, 68
in stress management, 145, 146–147
team, 395–397
Trait(s) Recurring trends in people’s
responses to their environment. 266
leader emergence and effectiveness,
446–447
Trait activation The degree to which situations
provide cues that trigger the expression of a
given personality trait. 286–287
Transactional contracts Psychological
contracts that focus on a narrow set of specific
monetary obligations. 79
Transactional leadership A pattern
of behavior where the leader rewards or
disciplines the follower based on performance.
457, 458
Transactional theory of stress A theory
that explains how stressful demands are
perceived and appraised, as well as how people
respond to the perceptions and appraisals.
127–140
Managing Commitment in Demanding Jobs
(case), 543–545
primary appraisal, 127–132
secondary appraisal, 132–133
types of stressors, 128–132
Transactive memory The degree to which
team members’ specialized knowledge is
integrated into an effective system of memory
for the team. 392
Transfer of training Occurs when employees
retain and demonstrate the knowledge, skills,
and behaviors required for their job after
training ends. 254
Transformational leadership A pattern of
behavior where the leader inspires followers
to commit to a shared vision that provides
meaning to their work while also serving as a
role model who helps followers develop their
own potential and view problems from new
perspectives. 456–461
components of, 458–460
of U.S. presidents, 460–461, 462
Transition processes Teamwork processes,
such as mission analysis and planning, that
focus on preparation for future work in the
team. 384
Transportable teamwork competencies
Team training that involves helping people
develop general teamwork competencies that
they can transport from one team context to
another. 395–396
Trivial Pursuit (game), 313, 353
Trust, 194–230 The willingness to be
vulnerable to an authority based on positive
expectations about the authority’s actions and
intentions. 196–197
affect-based, 197, 198, 201–202
citizenship behavior and, 218
cognition-based, 197, 198, 199–201, 215–216
in corporate social responsibility, 219
disposition-based, 197–199, 215
ethics and, 197, 208–215
importance of, 196–197, 217–219
in integrative model of OB, 8, 217–219
job performance and, 218
justice and, 8, 197, 203–208
Leading in a Hostile Environment (case),
546–548
organizational commitment and, 217–219
types over time, 203
variations in, 197
Trust propensity A general expectation
that the words, promises, and statements of
individuals can be relied upon. 197–199
assessing, 199
by nation, 200
Trustworthiness Characteristics or
attributes of a person that inspire trust,
including competence, character, and
benevolence. 199–201
Turnover, 62, 66–68, 74, 77–79, 81
Type A Behavior Pattern People who
tend to experience more stressors, appraise
more demands as stressful, and be prone to
experiencing more strains. 137–139, 274
Type B Behavior Pattern, 140, 274
Typical performance Performance in the
routine conditions that surround daily job
tasks. 285–287
U
Uncertainty avoidance The degree
to which a culture tolerates ambiguous
situations (low uncertainty avoidance) or
feels threatened by them (high uncertainty
avoidance). 281–283
Understanding and adaptation The
final stage of socialization, during which
newcomers come to learn the content areas
of socialization and internalize the norms
and expected behaviors of the organization.
522–523
Use of emotions The degree to which
people can harness emotions and employ them
to improve their chances of being successful in
whatever they are seeking to do. 314–315
Utilitarianism, 214
V
Valence The anticipated value of the
outcomes associated with successful
performance. 166–168, 180
Validity, 22
Value in diversity problem-solving
approach A theory that supports team
diversity because it provides a larger pool of
knowledge and perspectives. 354
Value-percept theory A theory that argues
that job satisfaction depends on whether the
employee perceives that his or her job supplies
those things that he or she values. 94–103
Values Things that people consciously or
unconsciously want to seek or attain. 94
commonly assessed, 95
cultural. See Cultural values
espoused, 511, 513–514
job satisfaction and, 94–109
organizational culture and, 522–523, 528
in value-percept theory, 94–98
Variable interval schedule Reinforcement
occurs at random periods of time. 238, 239
Variable ratio schedule Behaviors are
reinforced after a varying number of them have
been exhibited. 239
Variety The degree to which a job requires
different activities and skills. 100
Veiled purpose tests Integrity tests that
do not directly ask about dishonesty, instead
assessing more general personality traits
associated with dishonest acts. 288–290
Final PDF to printer
567Glossary/Subject Index
coL27660_sidx_549-567.indd 567 11/03/17 01:18 PM
Verbal ability Various capabilities associated
with understanding and expressing oral and
written communication. 307–309
Verbal persuasion Pep talks that lead
employees to believe that they can “get the job
done.” 165
Vicarious experiences Observations of and
discussions with others who have performed
some work task. 165
Virtual teams A team in which the
members are geographically dispersed, and
interdependent activity occurs through e-mail,
web conferencing, and instant messaging. 343
Virtue ethics, 214
Visibility How aware others are of a leader
and the resources that leader can provide. 416
Visual color discrimination, 319, 320
Visualization, 309, 310
Voice When an employee speaks up to offer
constructive suggestions for change, often in
reaction to a negative work event. 37–38, 70
Volunteering The giving of time or skills
during a planned activity for a nonprofit or
charitable group. 69
W
Wasting resources Using too many materials
or too much time to do too little work. 41
Wheel network structure, 388
Whistle-blowing When employees expose
illegal actions by their employer. 210
Wide/flat span of control, 484–486
Withdrawal behavior Employee actions
that are intended to avoid work situations. 62,
69–75
employee task performance levels, 70–72
physical, 72–75
psychological, 72, 73, 74–75
quitting, 74
reactions to negative work events, 70
strategies to reduce, 81
Women
diversity of workforce, 75
powerful, list of, 414
relative compensation of, 205
sexual harassment and, 42, 516
Wonderlic Cognitive Ability Test A
12-minute test of general cognitive ability used
to hire job applicants. 323–325
Work complexity The degree to which job
requirements tax or just exceed employee
capabilities. 130
Work-family conflict A form of role conflict
in which the demands of a work role hinder
the fulfillment of the demands in a family role
(or vice versa). 131
Work responsibility The number and
importance of the obligations that an employee
has to others. 130–131
Work specialization The degree to which
tasks in an organization are divided into
separate jobs. 483–484
Work teams A relatively permanent team
in which members work together to produce
goods and/or provide services. 339, 340
Written comprehension, 307, 309
Written expression, 308, 309
Y
Y network structure, 388
Z
Zero acquaintance Situations in which two
people have just met. 271–272
Final PDF to printer
568
coL27660_nidx_568-582.indd 568 11/03/17 01:16 PM
Name Index
A
Abel, R., 427
Abele, A. E., 191
Abraham, L. M., 297
Abrahm, S., 154
Abush, R., 156
Adams, A., 350
Adams, E., 473
Adams, G. L., 437
Adams, J. S., 175, 176, 190, 191, 204, 225
Adams, R., 472
Aditya, R. N., 472
Adler, A. B., 334
Adler, S., 301
Aesop, 43
Aguinis, H., 10, 54, 174, 187
Ahearne, M., 55, 478
Ahrendts, A., 414–415
Aiken, L. S., 27
Aiman-Smith, L., 193, 537
Albright, L., 296
Alderfer, C. P., 167, 189
Alexander, H., 485
Alexander, S., 229
Alge, B. J., 173
Allan, B., 262
Allen, D., 57
Allen, D. G., 85, 89, 334
Allen, J. A., 367
Allen, N. J., 66, 85
Allen, T. D., 55, 154, 158, 539
Alliger, G. M., 253, 261
Allison, W., 298
Allport, G. W., 295
Alter, A., 259
Alterman, T., 152, 157
Alutto, J. A., 371
Amabile, T. M., 53, 507
Ambrose, M. L., 227, 229, 259
Amos, D., 449
An, S., 250
Ancona, D. G., 404
Anderson, N. R., 539
Anderson, R., 526
Anderson, R. D., 477
Andersson, L. M., 56
Andrews, A. O., 26
Ang, S., 308, 471
Anthony, W. P., 258
Aparna, J., 368–369
Aquino, K., 52, 229
Arad, S., 33, 53
Aristotle, 101
Armenakis, A., 157
Armour, S., 56
Armstrong, L., 26
Armstrong, P. I., 298
Armstrong, T., 301
Arndt, M., 437
Arthur, W., Jr., 405, 529, 536, 539
Arvey, R. D., 295, 297
Asendorpf, J. B., 297
Ash, M. K., 461
Ashford, S. J., 538
Ashforth, B. E., 85, 260, 435
Ashkanasy, N. M., 121
Ashton, M. C., 302
Atanasoff, L., 299
Atinc, G., 438
Atkinson, W., 159
Audia, P. G., 174
Auriemma, G., 31
Austin, E. J., 331–332
Austin, N. K., 158
Averbrook, J., 261
Avila, R. A., 55
Avolio, B. J., 445, 475–478
Ayman, R., 364
B
Baas, M., 121
Babcock, P., 536
Bacharach, S. B., 437
Bachiochi, P. D., 114, 122
Bachrach, B. G., 408
Bachrach, D. G., 55, 465, 476
Bacon, F., 16, 26
Baer, M., 53
Bailey, D. E., 340, 364
Bailey, S., 535
Baillien, E., 57
Baird, B. M., 269
Bakker, A. B., 120, 188
Bal, P. M., 89
Baldwin, T. T., 122
Ballard, T. N., 409
Balliet, D., 439
Ballinger, G. A., 471
Balzer, W. K., 114, 122
Bamberger, P. A., 156, 259, 408
Bandura, A., 165, 188, 259
Banks, G. C., 438
Barbee, A. P., 302
Barber, A. E., 539
Barger, D., 530
Barkema, H. G., 371
Barksdale, K., 229
Barling, J., 478
Barnes, C. M., 405
Barney, J. B., 26
Baron, J., 248
Baron, M., 383
Bar-On, R., 330
Baron, R. A., 121, 437
Barra, M., 414, 443, 444, 447, 449, 456,
468–469, 497, 523
Barrett, A., 190
Barrick, M. R., 286, 296–298, 300, 301, 367,
368, 408, 537
Barron, L. A., 189
Barros, E., 121
Barry, B., 368, 440
Barside, S. G., 331
Barsky, A. P., 297
Bartol, K. M., 192
Barton, K., 88
Bashshur, M. R., 54
Bass, B. M., 445, 458, 474, 475
Bastian, E., 509, 533
Batali, M., 234
Bates, S., 225
Batty, G. D., 330
Bauer, T. N., 122, 471, 537
Baum, M., 245
Bazerman, M. H., 439
Beach, D., 201
Beal, D. J., 121, 407
Bear, J. B., 406
Beatty, R. W., 47, 58
Beaubien, J. M., 259–260
Bebeau, M. J., 229
Becker, H. S., 85
Becker, T. E., 499
Becker, W. S., 189
Bedeian, A. G., 157
Beehr, T. A., 78
Beersma, B., 365, 439
Beethoven, L. van, 320
Begley, S., 25
Behfar, K., 356
Behfar, K. J., 405
Behr, P., 408
Belkin, L. Y., 225
Bell, B., 409
Bell, B. S., 371, 405
Bell, M. P., 370
Bell, S. T., 300, 367, 529, 539
Bellman, G., 402
Bellstrom, K., 414
Belohlav, J. A., 300
Ben-Menahem, S. M., 403
Benne, K., 352, 367
Bennett, D., 533
Bennett, R. J., 41, 56
Bennett, W., Jr., 253, 261
Bensinger, G., 536
Benson, H., 146
Benson, L., 227, 440
Beranek, P. M., 406
Berfield, S., 228, 437, 535
Berg, P., 129
Berger, B., 250
Bergey, P. K., 193
Bergman, M. E., 536
Berkowitz, L., 225
Final PDF to printer
569 Name Index
coL27660_nidx_568-582.indd 569 11/03/17 01:16 PM
Berman, D., 409
Bernardin, H. J., 302, 440
Bernieri, F., 329
Berns, G., 119
Bernstein, E., 434
Berry, C. M., 286, 302, 334
Berry, J. W., 53
Betof, E., 437
Beubien, J. M., 408
Beus, J. M., 536
Beyer, J. M., 534
Bezos, J., 46, 411
Bhaskar-Shrinivas, P., 134
Bhatia, P., 476
Bhave, D. P., 57, 369
Bhawuk, D. P. S., 437–438
Biberman, G., 438
Biddle, B. J., 366
Bies, R. J., 204, 226
Bigman, D., 506
Bing, M. H., 437
Birjulin, A., 438
Birk, S., 535
Birkeland, S. A., 302
Biron, M., 159, 259
Birtch, T. A., 40
Black, C., 331–332
Black, J. S., 78, 134, 300, 538
Blanchard, K. H., 455, 474
Blank, W., 474
Blau, G., 87
Blau, P., 229
Blickensderfer, E., 409
Bliese, P. D., 152, 298
Bligh, M. C., 476
Bloom, R., 221–222
Bluedorn, A. C., 505
Blume, B. D., 55
Blumenthal, K., 475
Bobocel, D. R., 167, 189
Bock, L., 186, 187
Bogg, T., 295
Bohte, J., 504
Boisner, A., 537
Bolch, M., 372
Boles, J. S., 154
Bolger, N., 297
Bolino, M. C., 55
Bommer, W. H., 471, 477, 478
Bonaccio, S., 406
Bond, M. H., 282, 299
Boning, B., 364
Bono, J. E., 111, 121, 296, 297, 447, 475, 477
Boodoo, G., 329
Borgen, F. H., 299
Borman, W. C., 53, 54, 286
Borman, W. S., 333
Bormann, C. A., 438
Bornstein, B. H., 403
Bosco, F., 334
Boswell, W. R., 153, 157, 322, 333
Bouchard, T. J., Jr., 295, 297, 329
Boudreau, J. W., 153, 157, 322, 333
Bou-Llusar, J. C., 259
Bourdain, A., 245
Bourgeois, L. J., 438
Boussebaa, M., 506
Bowen, D. E., 478, 535
Bowers, C., 260
Bowler, W. M., 57
Bowling, N. A., 119
Boykin, A. W., 329
Boyle, M., 506
Bozell, D., 409
Bozionelos, N., 407
Brackett, M. A., 329
Bradlee, B., Jr., 383
Bradley, B. H., 405, 408
Bradley, J. C., 297, 298, 536
Brady, D., 473
Brahy, S., 525
Brand, P., 21
Brannick, M. T., 98, 119, 302
Braun, M. T., 403
Bravo, J., 89
Breaugh, J. A., 119
Breaux, D. M., 227
Brégier, F., 487
Brehmer, B., 367, 404
Breinin, E., 477
Brennan, B., 448
Brett, J., 356
Brett, J. F., 242
Bretz, R. D., 322, 333
Brief, A. P., 121
Brin, S., 310
Briner, R. B., 27
Brinker, N., 461
Brinkmann, J., 259
Brinkmann, U., 284
Brito, C., 526
Brockmann, E. N., 258
Brockner, J., 188, 206, 226, 261, 499, 507
Brodbeck, F. C., 459
Broden, J., 24
Brody, N., 329
Brooks, H., 166
Brothen, T., 329–330
Brouer, R. L., 437, 471
Brown, D. J., 57
Brown, J., 341
Brown, K. G., 189, 367, 405
Brown, M. E., 228
Brown, T. J., 536
Bruch, H., 367, 505
Brunner, R., 474
Bryan-Low, C., 437
Bryant, A., 472, 473, 535
Bryant, D., 449
Bryant, F. B., 156
Bryant, P. C., 85
Buchko, A. A., 117
Buchtel, E. E., 299
Buckman, B. R., 156
Buderi, R., 419
Buffett, W., 117, 246
Buford, B., 234, 258
Bunch, J., 434
Bunderson, J. S., 191
Bunker, B. B., 203, 224
Burak, O., 54
Burchell, M., 119
Burke, C. S., 409
Burke, M. E., 145, 157
Burke, M. J., 407, 536
Burkhead, E. J., 156
Burkus, D., 362
Burnett, D. D., 301
Burnfield, J. L., 472
Burns, C., 88
Burns, L. M., 474
Burns, L. R., 506
Burns, T., 489
Burns, U., 240, 241
Burris, E. R., 54, 87
Burris, L. R., 302
Burt, R. S., 223
Burton, J. P., 86
Burton, K., 257
Burtt, H. E., 473
Bush, G. W., 460
Bush, M. C., 14, 26
Buss, A. H., 22
Butterfield, K. D., 228
Butts, M. B., 158
Butts, M. M., 154
Byham, W. C., 259
Byland, A., 25
Byosiere, P., 136, 155
Byrne, D., 369
Byrne, J. A., 49
Byrne, Z. S., 167, 189
Byrnes, N., 89
Byron, K., 406–407
C
Cable, D. M., 95, 118, 537, 538
Cacioppo, J. T., 121
Caldwell, D. F., 528, 534
Call, M. L., 54
Callahan, C., 302
Callister, R. R., 537
Camara, W. J., 332
Camerer, C., 223
Cameron, K. S., 440
Campbell, D. P., 299
Campbell, D. T., 27
Campbell, J. P., 26, 53, 299, 334
Campbell, S. M., 83
Campion, M. A., 88, 120, 346, 358, 371, 395,
409, 505, 507
Can, O., 300
Canella, A. A., Jr., 369
Canner, N., 434
Cannon, W. B., 155
Cannon-Bowers, J. A., 260, 408, 409
Final PDF to printer
570 Name Index
coL27660_nidx_568-582.indd 570 11/03/17 01:16 PM
Caplan, R. D., 154
Cappelli, P., 89
Capps, M. H., 302
Carell, S., 245
Carey, S., 409, 533
Carlson, N., 333
Carr, D., 332
Carr, J. C., 227
Carroll, A. B., 229–230
Carroll, J. B., 330
Carson, J. B., 404
Carson, K. D., 431
Carson, K. P., 122
Carson, P. P., 431
Carton, A. M., 370
Caruso, D. R., 330–331
Cascio, W. F., 88
Casper, W. J., 154, 158
Cassidy, J., 257
Castro, S. L., 440
Cattell, R. B., 330
Cavanaugh, M. A., 153, 157
Ceci, S. J., 329
Cellar, D. F., 298
Cellitti, D. R., 56
Ceranic, T. L., 229
Chamberlin, M., 54
Chambers, T., 516
Chamerlain, K., 153
Chang, C., 438
Chang, W. W., 409
Chao, G. T., 403, 522, 538
Chao, M. M., 308
Chaplin, C., 484
Chastain, J., 451
Chatman, J. A., 528, 534, 537
Chavez, C., 436
Chazelle, D., 272
Chemers, M. M., 364
Chen, C. C., 121, 299, 419
Chen, Y., 57, 299
Chen, Y. R., 419
Chen, Z., 54
Chen, Z. X., 476
Cheong, M., 418, 436
Cherniss, C., 331
Chernyshenko, O. S., 296
Cherrington, D., 87
Chesky, B., 530
Chess, W. A., 156
Chiaburu, D. S., 87
Chiang, F. F. T., 40
Chien Farh, C. I. C., 331
Child, J., 504
Childress, J., 511–512
Chiocchio, F., 406
Chiu, C., 250
Chiu, C. Y., 299
Cho, S., 250
Chouinard, Y., 517
Christal, R. E., 295
Christian, J., 439
Christian, M. S., 536
Christiansen, N. D., 78, 302, 303
Chua, R. Y. J., 419
Church, A. H., 118
Churchill, W., 485
Cialdini, R., 417
Clarke, S., 536
Clason, P., 332
Clayton, L. D., 364
Clegg, C. W., 365
Clinton, W. J., 462
Clore, G., 369
Cockburn, B., 155
Cohen, B., 81
Cohen, J., 27, 295
Cohen, K., 192
Cohen, P., 27
Cohen, R. R., 407
Cohen, S., 154, 156
Cohen, S. G., 340, 364, 365
Cohen-Charash, Y., 182, 192, 226
Colarelli, S. M., 322, 333
Colbert, A. E., 189, 408, 447
Cole, M. S., 331, 367
Colella, A., 191
Coleman, V. I., 54
Colligan, M., 152, 157
Collins, J., 505
Collins-Nakai, R., 88
Colquitt, J. A., 53, 182, 192, 218, 226, 227,
253, 261, 298, 300, 333, 404, 476
Colvin, G., 534, 537
Comer, D. R., 367–368
Concalo, J. A., 408
Conger, J. A., 475
Conlin, M., 89, 507
Conlon, D. E., 182, 192, 226, 261, 405–406, 440
Conte, J. M., 332
Conti, R., 507
Converse, S. A., 408
Cook, T., 414–415, 418, 481, 502–503
Cook, T. D., 27
Cooke, D. K., 302
Coon, H. M., 299
Coons, A. E., 473
Cooper, C. L., 156, 157
Cooper, E. A., 177, 191
Cooper, H., 297
Cooper, W. H., 87
Cooper-Hakim, A., 111, 122, 286, 300
Copeland, R., 257
Copper, C., 407
Corkery, M., 52–53
Corley, K. G., 85
Corner, P., 538
Cortina, J. M., 303
Costa, P. T., Jr., 267, 295, 296
Costanza, D. P., 309, 319, 329
Costner, K., 311
Costolo, D., 513
Cote, S., 331
Cotton, J. L., 157, 435
Cottrell, J. M., 329
Couch, L. L., 224
Courtright, S. H., 358, 366
Covey, S. M. R., 228
Cowie, H., 57
Cox, C., 491
Cox, T., 369, 382
Coy, P., 88, 226
Crane, A., 214
Crawford, E. R., 152–153, 156, 188, 391,
476, 477
Crede, M. A., 333
Crenshaw, E., 117
Criqui, M. H., 296
Cropanzano, R., 120, 167, 189, 438,
440, 488
Crouter, A., 154
Cruise, T., 307, 309
Csikszentmihalyi, M., 120
Cullen, J. B., 200, 313, 321
Cullen, M. J., 300
Cumberbatch, B., 485
Cummings, J. N., 370
Cummings, L. L., 168
Cunningham, C. R., 157
Cunningham, D. A., 156
Cunningham, M. R., 302
Cunningham-Snell, N. A., 539
D
Daft, R. L., 406
Dahm, P. C., 154
Dai, G., 499, 507
Dalal, R. S., 55, 111, 121
Dalessio, A., 122
Dalio, R., 233, 256–257
Damon, M., 451
Dance, C., 485
Dane, E., 260
Daniel, T. A., 57
Daniels, C., 155
Dansereau, F., Jr., 371, 470
Dao, D., 532–533
Darrat, M., 438
Daus, C. S., 121
Davenport, R., 407
Davenport, T. H., 27
Davies, M., 331
Davis, G. F., 505
Davis, J. H., 198, 199, 203, 223
Davison, H. K., 303, 437
Dawis, R. V., 95, 118
Dawson, C., 26
Dawson, J. F., 518
Day, D. V., 471
De Chermont, K., 297
De Corte, W., 334
De Cuyper, N., 57
De Dreu, C. K. W., 121, 366, 369, 370, 405, 439
De Lange, A. H., 89
De Meuse, K. P., 340, 371
De Vries, T. A., 404
Final PDF to printer
571 Name Index
coL27660_nidx_568-582.indd 571 11/03/17 01:16 PM
De Wit, F. R. C., 405
De Witte, H., 57
Deal, T. E., 534
Dean, M. A., 332
Dean, R. A., 322, 333
Dearborn, M. J., 156
Deary, I. J., 330
Deaton, A., 122
DeBord, M., 469
Debow, D., 184
DeCarlo, S., 26
DeChurch, L. A., 405, 406
Deci, E. L., 167, 189, 191
Defrank, R. S., 155
DeGeest, D. S., 367
DeGrassi, S. W., 301
Delaney, K. J., 505
Delbecq, A. L., 366, 403
Delery, J. E., 89
Delongis, A., 155
DeMatteo, J. S., 371–372
DeMeuse, K. P., 499, 507
Den Hartog, D. N., 471
Denes-Raj, V., 248
DeNeve, K. M., 297
DeNisi, A. S., 58
Denniston, A., 485
Denyer, D., 27
DePass, D., 151
Derks, D., 120
DeRue, D. S., 405, 471
Derven, M., 506
Dessler, G., 89
Detert, J. R., 87
Detterman, D. K., 332
Deutsch, M. A., 366, 372
Devine, D. J., 364, 367
Devine, K., 88
DeVore, C. J., 57, 439
Dewe, P. J., 156
Diamond, S., 403
Dickerson, T., 254
Dickter, D. N., 322, 333
Diefendorff, J. M., 121
Diehl, M., 403
Diener, E., 107, 113, 120, 121, 297
Dierdorff, E. C., 300
Digman, J. M., 295
Dilchert, S., 302–303
Dimotakis, N., 330
Dineen, B. R., 225
D’Innocenzo, D., 407
Dirks, K. T., 218, 229
Dishan, K., 407
Dixon, P., 301
Doheny, K., 159
Dolan, S., 407
Donaldson, T., 227–228
Donnellan, M. B., 269
Donovan, A., 61
Donovan, J., 427
Donovan, J. J., 190
Donovan, M. A., 33, 53
Dorfler, V., 262
Dorfman, P. W., 299, 459, 477–478
Dorgan, B. L., 397, 409
Dotlich, D., 409
Doty, D., 405
Douglas, C., 422, 437
Douma, B., 229
Doverspike, D. D., 298, 529, 539
Drach-Zahavy, A., 436
Drasgow, F., 105
Drexler, M., 452
Driskell, J. E., 409
Drucker, P. F., 57, 58
Du Gay, P., 536
Duckworth, A., 287
Duckworth, H., 365
Duffy, M. K., 52, 57, 227
Duffy, R. D., 191
Duke, A. B., 437
Dulebohn, J. H., 471
Dunbar, R., 491, 505
Duncan, T. E., 168
Dunfee, T. W., 227–228
Dunford, B. B., 364
Dunkel-Schetter, C., 155
Dunne, M., 525
Durham, C. C., 192
Dutton, J. E., 120
Dvir, T., 478
Dvorak, P., 436, 505
Dworkin, T. M., 228
Dwoskin, E., 226
Dwyer, P., 382
E
Earley, P. C., 174, 226, 299–300, 308, 366
Easterbrook, S., 486
Eastwood, C., 36
Eby, L. T., 297, 371–372, 539
Eckart, A., 36
Eddy, E. R., 405
Eden, C., 262
Eden, D., 478
Edison, T., 29
Edmonds, G. W., 295
Edmondson, A., 407
Edmondson, G., 298, 525
Edwards, C., 26
Edwards, J. R., 95, 118, 152, 154, 405–406, 537
Egan, T. M., 537
Ehrhart, M. G., 515, 535, 536
Eichenwald, K., 400
Einarsen, S. S., 57
Eisenberger, R., 89
Eisenhardt, K. M., 438
Eisenhower, D. D., 457
Eissa, G., 52
Eldam, M., 26
Eldridge, L. D., 152
Eliison, S., 259
Ellis, A. P. J., 404, 409
Ellison, L., 461
Ells, S., 484
Emerson, R. M., 435
Emo, A. K., 330
Engardio, P., 382
Engelbert, C., 414
Ensari, N., 439
Epitropaki, O., 471
Epstein, S., 248
Epstein, T., 265, 293
Erden, Z., 403
Erdogan, B., 122
Erez, A., 53, 57, 111, 121, 298, 333
Erez, M., 68, 86, 173, 174, 190, 403, 408
Ergen, C., 428
Erickson, E. H., 224
Ericsson, A., 235
Ericsson, K. A., 258
Essens, P. J. M. D., 404
Esser, J., 408
Eucker, T. R., 258
Euwema, M. C., 406
Evers, A., 439
Ewen, R., 369
Ewing, J., 539
Exner, J. E., Jr., 224
F
Fairchild, C., 536
Fairclough, S., 506
Falbe, C. M., 431, 435, 437
Fandt, P. M., 438
Farace, R. V., 407
Farahani, G., 99
Farh, C. I., 54
Farh, J. L., 54, 308
Farnham, A., 330
Farrell, D., 85, 86–87
Farrell, M., 525
Farrelly, D., 331–332
Fatimah, S., 57
Favre, B., 137
Favreau, J., 71
Fehrenbacher, K., 25
Feist, G. J., 298
Feldman, D. C., 86, 154
Felps, W., 86
Fenigstein, A., 22
Ference, R., 408
Fern, E. F., 55
Fernandez, C. F., 474
Ferrin, D. L., 218, 229
Ferris, D. L., 57
Ferris, G. R., 120, 422, 436–438, 471
Festinger, L., 407
Fetter, R., 55–56, 477
Fichman, M., 87
Field, R. H. G., 472
Fields, D., 261–262
Fields, M., 497
Finkelstein, S., 461
Finn, R. H., 191
Final PDF to printer
572 Name Index
coL27660_nidx_568-582.indd 572 11/03/17 01:16 PM
Fiorina, C., 500
Firestone, I. J., 229
Fisher, A., 87, 88, 89, 331, 365
Fisher, C. D., 537
Fisher, D. M., 405
Fisher, R., 428, 439–440
Fishman, C., 362
Fitzgerald, M. P., 104, 120
Flaherty Manchester, C., 154, 158
Fleeson, W., 294
Fleisher, L., 439
Fleishman, E. A., 309, 319, 329, 332, 473
Flint, J., 85
Floor, L., 473
Florey, A. T., 370
Florida, R., 53
Fogli, L., 300
Foldes, H. J., 477
Folger, R., 225–226, 227
Folkman, S., 152, 155
Ford, H., 483
Ford, M. T., 153
Forsyth, D. R., 438
Foulk, T., 57
Foulkes, H., 414
Foust, D., 537, 538, 539
Fowlkes, J. E., 409
Fox, J., 27
Franklin, B., 196
Frauenheim, E., 86, 155, 223, 227, 301
Frazier, M. L., 57
Frei, R. L., 296
Freidberg, J., 54
Freidberg, K., 54
French, J. R. P., Jr., 154, 435
Frese, M., 158
Frey, M. C., 332
Fried, Y., 120
Friedman, H. S., 296
Friedman, L., 475
Friedman, M., 155–156, 297
Friedman, R. H., 138
Friedman, T. L., 10
Frink, D. D., 422, 437–438
Frommer, D., 26
Frone, M. R., 154, 227
Fry, E., 222, 414
Fry, L., 537
Fry, M., 506
Fu, P. P., 86, 419
Fugate, M., 538
Fuhrmans, V., 539
Fujita, F., 297
Fuller, B., 438, 461
Fulmer, A., 440
Fulmer, I. S., 26, 192, 300, 367
Funder, D. C., 294
Furnham, A., 286, 300
Fusilier, M. R., 156
Fussman, C., 469
Futrell, D., 340, 371
G
Gabarro, J. J., 224–225
Gabriel, A. S., 57
Gaertner, S., 72, 87, 88
Gaines, J., 537
Galbraith, J., 168, 496
Gallagher, L., 535, 539
Gallagher, P., 294
Galton, F., 330
Gandolfi, F., 506
Ganster, D. C., 154, 156
Garabedian, M., 383
Gardner, H., 330, 516
Gardner, H. K., 377
Gardner, P. D., 522, 538
Gardner, W. L., 298
Garland, H., 261
Garvin, D. A., 473
Garza, A. S., 404
Gates, B., 186
Gaudiosi, J., 505
Gavin, J. H., 370
Gavin, M. B., 229
Gebert, D., 369, 370
Geider, S., 227
Gelfand, M. J., 86, 308, 440
Gellar, A., 301
Gelles, D., 259
Gent, C., 420
George, J. M., 53, 298
Gerdes, L., 87, 192, 539
Gerhardt, M. W., 296, 447
Gerhart, B., 26, 88, 189, 192
Gerras, S. J., 536
Gersick, C. J. G., 366
Gerstner, C. R., 471
Geschka, H., 403
Giacalone, R. A., 227
Gibson, C. B., 174, 299–300
Gibson, R., 539
Gibson, W. M., 98, 119
Gigerenzer, G., 248
Gilbert, D., 536
Gilbreth, F. B., 119
Gill, C. M., 267
Gillan, K., 521
Gillenwater, P., 539
Gilliland, S. W., 227, 303
Gilmore, D. C., 437–438
Gilson, L. L., 365
Gist, M. E., 165, 188, 478
Gladwell, M., 25, 235, 505
Glanzer, M., 407
Glaser, R., 407
Glazer, E., 537, 538
Glenn, J., 311
Glibkowski, B. C., 89
Glick, W. H., 505
Glomb, T. M., 121, 154, 227, 369
Gobeli, D. H., 506
Godinez, V., 365
Goff, S., 333
Goffee, R., 515, 535
Goffin, R. D., 302
Gogus, C. I., 538
Gold, R., 536
Goldbacher, E., 168
Goldberg, A., 538
Goldberg, L. R., 267, 295–296
Goldenhar, L., 152, 157
Goldman, B. M., 440
Goldstein, D. L., 155
Goldstein, H. W., 537
Goldstein, M., 257
Goldstein, N. B., 303
Goleman, D., 330
Gomez, S., 245
Gonzalez-Mule, E., 54, 155, 333, 367
Gonzalez-Roma, V., 188, 534
Good, L., 414
Goode, M., 485
Gooding, R. Z., 371, 505
Goodstein, J., 225
Gopinath, C., 507
Gordan, J., 364
Gore, B., 487
Gosling, R., 272
Gosling, S. D., 295, 296
Gottfedson, L. S., 330
Goudreau, J., 158
Gouran, D., 407–408
Graeff, C. L., 474
Graen, G. B., 445, 470, 471
Graf, A. B., 537
Grand, J. A., 403
Grant, A., 524
Grant, A. M., 53, 119
Grant, S., 301
Gravelle, M., 538
Graziano, W. G., 296
Green, H., 58, 168, 436
Green, S. G., 471, 474
Greenbaum, R. L., 52
Greenberg, J., 191, 208, 224, 226, 227
Greene, E., 403
Greenfeld, K. T., 474
Greenfield, J., 81
Greenfield, R., 434
Greenwood, R., 506
Greer, J. L., 405
Greer, L. L., 405–406
Griffeth, R. W., 72, 87, 88, 89
Griffeth, T. L., 439
Griffin, J., 450
Grizzle, J. W., 536
Groden, C., 83
Groszkiewicz, D., 504
Groth, A., 434, 436
Grove, A., 415
Grow, B., 86, 230
Grubb, P., 152, 157
Gruen, R. J., 155
Final PDF to printer
573 Name Index
coL27660_nidx_568-582.indd 573 11/03/17 01:16 PM
Gruenfeld, D. H., 369
Gubbins, E., 538
Guerrero, L., 507
Guillaume, Y., 471
Gully, S. M., 408
Gunther, M., 230, 539
Gupta, B., 180
Gupta, N., 88, 89
Gupta, S., 356
Gupta, V., 299, 459
Gurin, G., 473
Guzzo, R. A., 366, 408
H
Hachiya, D., 87
Hackett, R. D., 476
Hackman, J. R., 105, 119, 191, 365, 371, 402,
504, 506
Haga, W. J., 470
Hagafors, R., 367, 404
Hagmaier, T., 191
Haigh, J., 539
Hair, E. C., 296
Hakanen, J. J., 158
Halbesleben, J., 158
Halfhill, T., 365
Hall, E., 369
Hall-Merenda, K. E., 476
Halpern, D. F., 329
Halpin, A. W., 473
Halvorson, T., 400
Hamblin, R. L., 372
Hamilton, A., 152, 157
Hamm, J., 507
Hamm, S., 192, 230, 496
Hammond, G. D., 119
Han, S., 418, 436
Han, Y., 505
Hancock, J. L., 216
Haneberg, L., 53
Hanges, P. J., 299, 459
Hanig, S., 57
Hanisch, K. A., 122
Hanks, T., 36, 427, 521
Hansen, F., 26, 27, 192, 226
Hansson, M., 506
Haran, C., 155
Hargadon, A., 403
Harkins, S. G., 372, 402–403
Harman, W. S., 86
Harms, P. D., 295
Harper, D., 56
Harrell, J., 129
Harris, B. T., 419
Harris, E. F., 473
Harris, J. A., 475
Harris, M., 356
Harris, M. J., 329
Harris, M. M., 301–302
Harris, V. A., 261
Harrison, A., 311
Harrison, D. A., 78, 87, 111, 122, 134, 228,
259, 322, 333, 368, 370
Harrison, R. V., 154
Harrison, S. H., 85
Hartel, C. E. J., 121
Harter, J. K., 188
Hartigan, J. A., 334
Hartley, E., 473
Hartnell, C. A., 535, 538, 539
Hartung, A., 533
Harvey, J., 55
Hass, M. R., 365
Hastings, J. E., 156
Hastings, R., 512
Hastings, S. E., 56
Hatfield, E., 121
Hauge, L. J., 57
Haugland, S. N., 301
Hauser, S. G., 227
Havlovic, S. J., 133, 155
Hayashi, A. M., 260
Hayes, T. H., 188
Haynes, D., 297
Hazelwood, J., 250
Hechanova, R., 78
Hecker, D., 58
Hedlund, J., 367, 404
Heim, J., 32
Heine, S. J., 299
Hekman, D. R., 86
Heller, D., 297
Helm, B., 224
Hempel, J., 535
Hempel, P. S., 505
Hemphill, J. K., 473
Henderson, A. A., 153
Henderson, N., 135, 146
Hengchen, D., 157
Henle, C. A., 10, 174, 227
Henneman, T., 189
Henson, T., 311
Herscovitch, L., 85, 111, 122, 182, 253, 261,
465, 477
Hersey, P., 455, 474
Herzberg, F., 27
Hess, E. D., 316
Hessels, M., 534
Hewson, M., 414
Hezlett, S. A., 333, 539
Hickson, D. J., 436
Higgins, C. A., 296
Higgins, T., 538
Higgs, A. C., 358, 371
Hill, J. W., 88
Hinings, C. R., 436
Hirokawa, R., 407–408
Hirschman, A. O., 86
Hirst, G., 403
Ho, M., 261, 478
Hochschild, A. R., 120–121
Hochwarter, W. A., 422, 437, 438, 499, 507
Hodgkinson, G. P., 267
Hoever, I. J., 371
Hoffman, B. J., 83, 333
Hoffman, D., 71, 513
Hoffman, J., 157
Hoffman, L., 369
Hofmann, D. A., 157, 536
Hofstede, G., 40, 280, 281–283, 299
Hoft, S., 302
Hogan, J., 296
Hogan, R. T., 19, 294
Hogarth, R. M., 260
Hogg, M. A., 260
Hokonen, M., 365
Holcombe, K. M., 535
Holland, B., 296
Holland, J. L., 279–280, 298
Hollenbeck, J. R., 173, 190, 364, 365, 367, 370,
371, 382, 402, 404, 405, 409
Hollinger, R. C., 56
Hollingshead, A. B., 408
Hollweg, L., 56
Holmes, S., 230
Holmes, T. H., 132, 154
Holste, J. S., 261–262
Holt, J. L., 439
Holtom, B. C., 68, 86, 88
Holtz, B. C., 334
Hom, P. W., 86, 88
Homan, A. C., 369, 370
Homans, G. C., 191
Hong, Y., 250, 535
Hoobler, J. M., 154
Hope, B., 257
Hosford, C., 506
Hough, L. M., 286, 300
House, R. J., 153, 299, 459, 472, 476
Houston, G., 25
Howard, J. A., 260
Howard, J. H., 156
Howard-Grenville, J. A., 537
Howell, J. M., 476
Howell, J. P., 477–478
Hsieh, T., 411, 412, 413, 415, 418, 420–421, 434
Hsiung, H. H., 55
Hu, C., 227
Hu, J., 405, 535
Hua, W., 227
Huang, X., 54
Huang, Y., 419
Huber, G. P., 505
Huber, V. L., 259
Huff, C., 189
Huffington, A., 516
Hui, C. M., 261
Hui, W., 534
Hulin, C. L., 55, 85, 87, 118, 121, 227
Hull, C. L., 188
Humphrey, R. H., 331
Humphrey, S. E., 119, 366, 370, 371, 404, 471
Hunter, E. M., 158
Final PDF to printer
574 Name Index
coL27660_nidx_568-582.indd 574 11/03/17 01:16 PM
Hunter, J. E., 303, 322, 332, 333
Huntington, R., 89
Hurd, M., 500
Hurrell, J., Jr., 152, 157
Huselid, M. A., 13, 26
Hutchison, S., 89
Hymowitz, C., 504
I
Ichniowski, C., 364
Idaszak, J. R., 105
Ihlwan, M., 26
Ihrig, M., 259
Ilgen, D. R., 53, 189, 286, 364, 370, 371, 382,
402, 404, 409
Ilies, R., 296, 300, 330, 447, 471, 473–474, 477
Imai, L., 308
Immelt, J., 51, 453, 455
Incalcaterra, K. A., 408
Ingrassia, P., 469
Ironson, G. H., 98, 119
Irwin, J. L., 114, 122
Isaacson, W., 475
Isen, A. M., 121
Ito, T., 511
Ivancevich, J. M., 155, 262, 364
J
Jablin, F. M., 406
Jackson, C. L., 300, 394, 403, 404–405
Jackson, J. F., 54
Jackson, J. J., 295
Jackson, M., 87, 320
Jackson, P. R., 365
Jackson, S. A., 120
Jackson, S. E., 370
Jacobs, G., 499
Jacobs, R. R., 229
Jago, A. G., 472
James, B., 21
Jana, R., 539
Janard-hanan, N. S., 405–406
Jang, K. J., 475
Janis, I. L., 407
Jansen, P. G. W., 89
Jardine, L., 26
Jargon, J., 504
Jarmusch, J., 99
Javidan, M., 299, 459
Jayaratne, S., 156
Jehn, K. A., 405, 439
Jenkins, G., 93, 117
Jenkins, G. D., Jr., 88, 89
Jennings, K. R., 157
Jensen, M. A. C., 365
Jensen-Campbell, L. A., 296
Jermier, J. M., 465, 477, 478, 537
Jia, R. T., 54
Jiang, K., 535
Jimeno, D. I., 87
Jin, J., 331
Jobs, S., 457–458, 460, 481
Johansson, S., 71
John, O. P., 295
Johns, G., 85, 87
Johnson, A., 414
Johnson, A. M., 475
Johnson, C., 403
Johnson, D. E., 111, 121
Johnson, D. W., 372
Johnson, E. C., 529, 539
Johnson, G., 58
Johnson, J. J., 200, 313, 321
Johnson, K., 261, 311
Johnson, L. B., 462
Johnson, M. D., 300
Johnson, R., 372, 523–524
Johnson, R. A., 370
Johnson, R. C., 158
Johnson, R. E., 54, 57
Johnson, S. M., 122
Johnson, S. R., 152
Johnston, J., 152, 157
Jolie, A., 415
Jones, A. P., 156
Jones, E. E., 261
Jones, G., 515, 535
Jones, G. R., 530
Jones, M., 130
Jones, N. C., 365
Jones, T., 93
Jones, T. M., 211, 228
Jones, W. H., 224
Joo, H., 54
Jordan, P. J., 406
Joseph, D., 331
Joseph, D. L., 334
Joshi, A., 368, 408
Judd, C. M., 260
Judge, T. A., 111, 118, 119, 121, 122, 153, 275,
286, 296, 297, 300, 302–303, 322,
330, 333, 447, 465, 473–474, 475, 477
Jung, C. G., 279, 298
Jung, K. G., 122
K
Kacmar, C. J., 422, 437
Kacmar, K. M., 437
Kafry, D., 155
Kahn, R. L., 136, 153, 155, 366, 473
Kahn, W. A., 188
Kahneman, D., 112, 122, 246, 248, 260–261,
262
Kaihla, P., 535
Kalanick, T., 425–426
Kamprad, L., 5
Kane, Y. I., 475, 505
Kanfer, R., 226
Kanter, R. M., 85
Kaplan, D. A., 539
Kaplan, M., 333
Kaplan, M. D. G., 54
Kaplan, S. A., 297
Kappas, A., 158
Kaptein, M., 228, 229
Katulak, N. A., 329
Katz, D., 366, 473
Katz, S., 414
Katzenberg, J., 97
Katz-Navon, T., 536
Kavanaugh, M. J., 262
Kazmi, S., 332
Kearney, E., 369, 370
Keaton, M., 216, 383
Keats, B., 505
Keeping, L. M., 57
Keiser, H. N., 329–330
Keller, R. T., 476
Kelley, H. H., 261
Kelley, T., 366, 380, 403
Kelloway, E. K., 227, 478
Kelman, H. C., 437
Kemmelmeier, M., 299
Kemmerer, B. E., 154
Kemp, N. J., 365
Kendall, L. M., 118
Kendell, J., 331
Kennedy, A. A., 534
Kennedy, J. C., 419
Kennedy, J. F., 390, 462
Kenny, D. A., 296
Kerby, S., 88
Kerlinger, F. N., 26
Kern, M. C., 356
Kerr, S., 465, 472, 477–478
Kesling, B., 535
Kessler, J., 496
Kessler, S., 539
Kiburz, K. M., 158
Kiger, P., 505
Kihn, J. A., 114, 122
Kiker, D. S., 56
Kiley, D., 26, 224, 506
Kim, E., 57, 369
Kim, H., 431, 436
Kim, S., 538
Kim, S. L., 418, 436
Kim, T., 538
King, L., 121
Kinicki, A. J., 122, 538, 539
Kirkman, B. L., 299, 300
Kirkpatrick, S. A., 476–477
Kisamore, J. L., 302
Kishan, S., 257
Kish-Gephart, J. J., 228, 259
Klawsky, J. D., 298
Klebe, L., 259
Klein, G., 260
Klein, H. J., 173, 190, 522, 538
Klein, K. J., 368, 371
Klimoski, R. J., 286, 408
Klotz, A. C., 405
Kluckhohn, C., 299
Final PDF to printer
575 Name Index
coL27660_nidx_568-582.indd 575 11/03/17 01:16 PM
Kluwer, E. S., 439
Knight, A. P., 368–369, 371
Kobasa, S., 156
Koehn, N. F., 475
Koenig, R., 366
Koh, W., 476
Kohlberg, L., 213, 228
Kohles, J. C., 476
Kohn, M. L., 329
Kolb, D. M., 439
Kolhatkar, S., 226
Kolodinsky, R. W., 422, 437, 438
Konopaske, R., 262, 364
Konstans, C., 322, 333
Koopman, J., 55, 57
Koopman, P. L., 471
Korbin, J. L., 332
Korman, A. K., 474
Korsgaard, M. A., 226
Koslowsky, M., 87
Kostopoulos, K., 407
Kowitt, B., 25, 414, 535
Kozlowski, S. W. J., 371, 403, 405
Kraatz, M. S., 89
Kraft, K. L., 211, 228
Kraimer, M. L., 431
Krantz, L., 126
Kranz, G., 478, 504, 539
Krause, S., 278
Krausz, M., 87
Kreitner, R., 259
Krell, E., 54
Krilowicz, T. J., 55
Kristoff Brown, A. L., 408, 529, 539
Kroc, R., 216
Kroeber, A. L., 299
Kroeck, K. G., 476
Krone, K. J., 406
Krueger, A. B., 112, 122
Kubota, Y., 506
Kukenberger, M. R., 407
Kuljanin, G., 403
Kulmann, T. M., 134
Kuman, K., 369
Kuncel, N. R., 329–330, 333
Kurek, K. E., 120
Kurtzerg, T. R., 225
Kvamme, N., 159
Kyounghee, H. K., 407
L
La Magna, M., 51
Ladika, S., 85, 262
Lam, H., 55, 121
Lam, W., 54
Lambert, L., 538
Lambert, L. S., 227
Lamm, H., 402
Lanaj, K., 54, 55
Lance, C. E., 83
Landy, F. J., 189
Langan-Fox, J., 301, 406
Langton, L., 56
LaRocco, J. M., 156
Larsen, R. J., 107, 120
Larson, A., 474
Larson, E. W., 506
Lashinsky, A., 503, 507
Latack, J. C., 133, 155
Latane, B., 372, 402–403
Latham, G. P., 27, 171–173, 188, 190, 192, 259
Latham, S., 192
Lau, D., 370
Lau, I. Y. M., 299
Law, K. S., 317, 331, 476
Lawler, E. E., III, 118, 119, 168, 190, 192, 364,
372, 505
Lawler, E. J., 437
Lawrence, P. R., 119
Lawson, C., 259
Lawthom, R., 518
Layard, R., 113
Lazarus, R. S., 108, 120, 152, 155
Leach, D. J., 472
Leavitt, H. J., Jr., 407
Ledford, G. E., Jr., 364, 365
Lee, A., 471
Lee, C. A., 436
Lee, H. B., 26
Lee, H. U., 369
Lee, J. M., 536
Lee, K., 302
Lee, K. Y., 57
Lee, K-F., 419
Lee, L., 230
Lee, M., 434
Lee, N., 320
Lee, S., 418, 436
Lee, S. I., 299
Lee, S. M., 191
Lee, T., 126
Lee, T. H., 88
Lee, T. W., 68, 86, 88
Lehman, D. W., 471
Lehmann, A. C., 258
Lehmann-Willenbrock, N., 367
Leitner, K., 155
Lemmon, G., 154
Lencioni, P., 225
Lengel, R. H., 406
Lentz, E., 539
Leonard, D., 226
Leondis, A., 191
LePine, J. A., 38, 53–55, 111, 121, 141, 142,
153, 156, 188, 218, 253, 261, 298, 333,
367, 368, 382, 394, 403, 404–405
LePine, M. A, 141, 142, 152–153, 157, 477
Leroy, S., 154
Leslie, L. M., 158
Leung, K., 299
Leventhal, G. S., 204, 225
Levering, R., 25, 83, 86, 118
Levesque, M. J., 296
Levin, D., 26
Levin, S., 462, 475
Lev-Ram, M., 414, 436, 535, 537
Levy, P. E., 438
Levy, S., 419
Lewicki, R. J., 203, 224, 225, 438
Lewis, D., 262
Lewis, J. D., 225
Lewis, M., 21, 27
Lewis-Kulin, S., 14, 26
Li, L., 86
Li, N., 367, 419
Lian, H., 57
Liang, J., 54
Liang, L. H., 57
Liao, H., 56, 535
Liden, R. C., 405, 470, 471
Lieberman, J. D., 403–404
Lievens, F., 334
Ligdas, N., 262
Liker, J. K., 53, 364–365
Likert, R., 473
Lim, B. C., 371
Lim, V. K. G., 57, 87
Lima, L., 539
Lin, J., 178
Lin, L. F., 98, 119
Lincoln, A., 462
Lincoln, J., 369–370
Lind, E. A., 224, 226
Linoerfer, J., 408
Lirtzman, S. I., 153
Litterer, J. A., 438
Littman, J., 380, 403
Liu, H. L., 121
Liu, W., 54
Lobel, S., 369, 382
Locke, E. A., 27, 118, 171–173, 182, 190,
476–477
Locke, K., 27
Lockwood, N. R., 258
Lodi-Smith, J., 295
Loehlin, J. C., 295, 329
Loher, B. T., 104, 120
Lombardo, M. M., 154
Lorenzi, E., 259
Louis, M. R., 537–538
Loviscky, G., 213, 229
Lowe, K. B., 299, 476
Lowery, C. M., 55
Lubinski, D., 332
Lublin, J. S., 538
Lucas, G., 461
Lucas, R. E., 269
Lucas, S., 87–88
Luchman, J. N., 297
Luciano, J., 497
Ludwig, K., 316
Lueneburger, C., 471
Final PDF to printer
576 Name Index
coL27660_nidx_568-582.indd 576 11/03/17 01:16 PM
Luk, D. M., 134
Lundgren, T., 492
Luo, Y., 419
Luria, G., 536
Luscombe, B., 469
Luthans, F., 27, 182, 192, 259, 364
Lux, S., 437
Lynch, J. C., 216
Lynch, J. W., 86
Lynch, P., 229
Lyons, B. D., 333
Lyubomirsky, S., 121
M
Maccoby, N., 473
MacDermid, S. M., 121
Mach, M., 407
MacKenzie, S. B., 55–56, 465, 476–478
MacMilan, D., 439
MacMillan, I., 259
MacMillan, P., 54
MacMillan, P. S., 349, 366
Macy, W. H., 188
Madden, J., 265
Mael, F. A., 260, 435
Magnus, K., 297
Maher, K., 537
Maier, N., 369
Maier, N. R. F., 188
Mainous, A. G., III, 86–87
Maitlis, S., 518
Major, D. A., 364, 402, 404
Malhotra, D., 439
Malkovich, J., 129
Malloy, T. E., 296
Manby, J., 195, 221–222
Mandel, M., 153
Mandeville, A., 158
Mangalindan, J. P., 536
Manian, V. G., 538
Manjoo, F., 436
Mann, O. K., 55
Manning, J., 27
Manning, P., 415
Mannix, E. A., 369, 382, 405
Mannor, M. J., 366
Mansfield, L. R., 122
Manson, T. M., 302
Manz, C. C., 364
Marcario, R., 516–517
Marcelo, S. L., 451, 513
March, J. G., 260
Marchionne, S., 447–448, 450, 494, 497
Marcic, D., 478
Marcus, B., 56, 302
Markham, S. E., 371
Marks, M. A., 405, 406, 409
Marks, M. L., 499, 507
Marquardt, M., 409
Marquez, J., 155, 225, 227
Marriott, J. W., Jr., 514
Marrone, J. A., 404
Marsh, H. W., 120
Marshall-Mies, J., 309, 319, 329
Martin, L. R., 296
Martin, R., 471
Martin, S., 535
Martinez Arias, R., 382
Martinko, M. J., 298
Martins, L. L., 370
Martocchio, J. J., 87
Martz, A., 407–408
Maruyama, G., 372
Maslach, C., 408
Maslow, A. H., 167, 189
Mason, B., 236, 258–259
Mathieu, J. E., 54, 85, 286, 300, 364, 366, 394,
404–405, 407
Matlack, C., 506
Matten, D., 214
Mattern, K. D., 334
Matteson, M., 262, 364
Matthews, G., 330
Matthews, R. A., 153
Matthisen, B., 57
Mattioli, D., 537, 538
Mausner, B., 27
Mawritz, M. B., 52
May, K. E., 370
Mayer, D. M., 515, 536
Mayer, J. D., 330–331
Mayer, M., 146, 158
Mayer, R. C., 198, 199, 203, 223, 229
Mayes, B. T., 156
Maynard, M. T., 365
McAdam, L., 240
McAdam, R., 236, 258–259
McAllister, D. J., 198, 224
McAuley, E., 168
McCall, M. W., 154
McCarthy, J. M., 475
McCarthy, T., 383
McCartney, K., 329
McCaulley, M. H., 298
McClelland, C. L., 120
McColl-Kennedy, J. R., 477
McCormick, B. W., 367
McCrae, R. R., 267, 295, 296, 299
McCrea, J., 434
McCrory, J., 236, 258–259
McDaniel, L. S., 88
McDaniel, M. A., 296, 438
McDonald, D., 216
McDonald, M., 216
McDonald-Mann, D., 478
McFarlin, D. B., 154
McGirt, E., 260
McGrath, J. E., 368
McGrath, M., 504
McGregor, J., 58, 192, 436, 536
McGuinness, P., 453
McIntyre, D. A., 26
McIntyre, M., 365
McKay, A., 245
McKean, K., 262
McKee-Ryan, F. M., 122
McKenna, J. F., 177, 191
McLean, L. D., 536–537
McLendon, C. L., 407
McLeod, P., 369, 382
McMillan, R., 507
McMurray, V. V., 435
McMurrian, R., 154
Medlock, K., 21
Medsker, G. J., 346, 358, 371
Mehl, M. R., 296
Mehng, S. A., 158
Meier, D. P., 53
Meier, K. J., 504
Meier, L. L., 154, 156
Meindl, J. R., 476
Melfi, T., 311
Mell, J. N., 408
Melner, S. B., 364
Mendenhall, M. E., 78, 134, 538–539
Menon, S., 153
Menon, T., 250
Mento, A. J., 182, 190
Merrill, D., 417
Mesmer-Magnus, J. R., 260, 405
Meyer, C. J., 371, 404
Meyer, J. P., 66, 85, 111, 122, 182, 253, 261,
465, 477
Meyers, D. G., 248
Miceli, M. P., 228
Michaels, D., 504
Michaels, L., 461
Michaelsen, I., 369
Michel, A., 154, 156
Michel, J. W., 333
Mickel, A. E., 189
Miles, R. E., 506
Milewski, G. B., 332
Milken, M., 461
Milkman, K. L., 157
Mill, J. S., 101
Miller, B., 21
Miller, B. K., 438
Miller, C., 168
Miller, C. C., 505
Miller, J., 152, 369–370
Miller, K. I., 472
Miller, L. K., 372
Miller, M., 152
Miller, M. L., 298
Miller, S., 157
Miller-Frost, S. L., 365
Milligan, S., 158, 261
Milliken, F. J., 370
Miner, A. G., 121, 227
Miner, J. B., 302
Miners, C. T. H., 331
Minette, K. A., 189
Final PDF to printer
577 Name Index
coL27660_nidx_568-582.indd 577 11/03/17 01:16 PM
Minkoff, H. B., 192
Minor, I., 437
Mintzberg, H., 437
Mio, J. S., 462, 475
Miron-Spektor, E., 403
Mischel, W., 301
Mishra, A., 499, 507
Mishra, K., 507
Mitchell, M. S., 227, 259
Mitchell, T. R., 68, 86, 88, 165, 188, 189
Mitra, A., 88
Moag, J. F., 204, 226
Mobley, W., 88
Moeller, N. L., 104, 120
Moffat, R. W., Jr., 496
Mohammed, S., 368, 370, 408
Mohrman, S. A., 364
Mol, S., 284
Molden, D. C., 261
Molso, M., 475
Monge, P. R., 407, 472
Moon, H., 261, 440
Moore, H., 331–332
Moorhead, G., 408
Moorman, R. H., 477
Morgeson, F. P., 119, 366, 471, 505, 536
Morris, J. R., 88
Morris, M. W., 250, 299
Morris, T., 506
Morris, W. N., 120
Morrison, A. M., 154
Morrison, D., 494
Morrison, E. W., 40, 54, 89, 407, 537
Morrison, R., 57
Morrison, T. G., 438
Morse, N., 473
Mosakowski, E., 308
Moskowitz, M., 83, 86, 118
Motowidlo, S. J., 53, 55, 56, 333
Mount, M. K., 286, 296–298, 300, 301, 333, 368
Mourier, P., 538
Mowday, R. T., 85, 188
Mowen, J. C., 536
Muchinsky, P. M., 87, 298–299
Mueller, W. S., 365
Mulcahy, A., 240, 259
Mullany, A., 472
Mullen, B., 403, 407, 409
Mullins, R., 408
Mulvey, P. W., 537
Munoz, O., 509, 533
Murnighan, J. K., 370
Muros, J. P., 477
Murphy, K. R., 58
Murphy, L., 152, 157
Murphy, L. R., 158
Murphy, R. M., 119
Murray, S. S., 157
Mutanen, P., 158
Myers, I. B., 298
Myers, L., 157
N
Nadkarni, S., 368, 370
Nahrgang, J. D., 119, 405, 471
Nahum-Shani, I., 156
Naquin, C. E., 225
Narayanan, L., 153
Narvaez, D., 229
Nauta, A., 439
Naveh, E., 403, 536
Naylor, J. C., 189
Naylor, P., 57
Neale, M. A., 369, 382, 439
Near, J. P., 228
Neck, C., 408
Neihoff, B. P., 55
Neilson, G. L., 504
Neisser, U., 329
Nelson, D., 372
Nemeth, C. J., 369
Netemeyer, R. G., 154
Neubaum, D. O., 229
Neubert, M. J., 368
Neufeld, D. J., 476
Neufeld, S., 154
Neuman, G. A., 368
Newcomb, T. M., 473
Newman, D. A., 111, 122, 329, 331, 334
Newport, C., 163
Newton, D. W., 54
Newton, I., 511
Ng, K. Y., 182, 192, 226, 440
Ng, P. T., 262
Ng, T. W. H., 86, 154, 297
Nicholson, N., 87
Nicholson-Crotty, S., 486, 504
Nicolas, S., 534–535
Nida, S. A., 407
Niehoff, B. P., 478
Nifadkar, S. S., 299
Nightingale, F., 265
Nijstad, B. A., 121
Niles-Jolly, K., 515, 536
Nisbett, R. E., 248
Nisen, M., 51, 58
Noe, R. A., 104, 120, 253, 261, 262
Noel, J., 409
Noel, T. W., 229
Noer, D. M., 507
Nohe, C., 154, 156
Nonaka, I., 259
Nooyi, I., 414
Norman, W. T., 295
Norris, W. R., 474
Northcraft, G. B., 439
Novak, M., 470
Novakovic, P., 414
Novicevik, M. M., 437
Noyce, J., 157
Nugent, P. S., 440
Nuttal, C., 504
Nyberg, A. J., 54
O
Obama, B., 415, 460–461
O’Boyle, E. H., 331, 438
O’Boyle, E., Jr., 54, 187, 188
O’Brien, J., 505
O’Connor, A., 153
O’Connor, W. E., 438
Odbert, H. S., 295
Oddou, G., 78, 134
O’Dell, C., 372
O’Driscoll, M. P., 156
Offerman, N., 216+
Oh, I. S., 333
Oh, O., 407
Oke, A., 535
Oldham, G. R., 105, 119, 191, 298, 403, 504
O’Leary-Kelly, A. M., 522, 538
Oliver, R. L., 440
Olsen, R. N., 192
Olson-Buchanan, J. B., 157
O’Neill, H., 505
Ones, D. S., 286, 289, 297, 302–303
Ordòñez, L., 229
O’Reilly, C., 368
O’Reilly, C. A., III, 53–54, 528, 534, 537
O’Reilly, J., 406
Orey, M., 227
Organ, D. W., 54
Osborn, A. F., 403
Osland, J. S., 134
Ostrof, C., 534
Ostrower, J., 533
O’Sullivan, S. L., 406
Oswald, F. L., 269
Otterbourg, K., 504
Ou, A. Y., 299, 539
Outerbridge, A. N., 333
Overholt, A., 301
Overton, L., 262
Oyserman, D., 299
P
Pacelle, W., 221
Padgett, M. Y., 122
Paetzold, R. L., 191
Page, G., 487
Page, L., 310, 417, 418
Page, S. E., 369
Paine, J. B., 55, 56, 465, 476
Papper, E. M., 346, 358, 371
Park, B., 260
Park, D., 250
Park, J. H., 369
Park, O. S., 56
Park, T. Y., 158
Parke, M. R., 331
Parker, B. W., 438
Parra, L. F., 114, 122
Patterson, B. F., 334
Patterson, M. G., 518
Final PDF to printer
578 Name Index
coL27660_nidx_568-582.indd 578 11/03/17 01:16 PM
Patton, G. K., 111, 121, 301
Paul, K. B., 98, 119
Paumgarten, N., 473, 536
Paunonen, S. V., 297
Pavlo, W., Jr., 212
Pavot, W., 297
Payne, S. C., 259–260, 303, 536
Paynton, C. F., 436
Pearce, J., 153
Pearsall, M. J., 366
Pearson, C. M., 56
Peeters, M. A. G., 367
Peeters, M. C. W., 158
Penenberg, A. L., 225
Peng, T. K., 419
Pennebaker, J. W., 296
Pennings, J. M., 436
Pepper, L., 499, 507
Pereira, B., 57
Perhoniemi, R., 158
Perkins, A., 157
Perloff, R., 329
Perrewé, P. L., 437, 438
Pescuric, A., 259
Peters, D. R., 473
Peterson, R. S., 405
Peterson, S. J., 27
Petersson, L., 5
Petkova, A. P., 223
Petrie, N., 148
Pfeffer, J., 26, 53–54, 435, 436
Philip, S., 168
Philips, J. L., 364, 367
Phillips, J., 404
Piccolo, R. F., 54, 119, 394, 404–405, 465,
473–476
Pierotti, A. J., 358, 366
Pieterse, A. N., 371
Pinder, C. C., 188, 259
Pine, C., 178
Pines, A., 155
Pinkley, R. L., 439
Piotrowski, C., 301
Piotrowski, M., 296
Pitt, B., 21
Plamondon, K. E., 33, 53
Platt, O., 71
Plouffe, D., 425–426
Ployhart, R. E., 334, 409
Podsakoff, N. P., 55, 119, 141, 142, 153
Podsakoff, P. M., 55–56, 465, 476–478
Polman, E., 408
Ponsoldt, J., 521
Pool, R., 235
Poon, J. M. L., 438
Popper, M., 477
Porat, R., 414
Porath, C., 43
Porras, J. I., 507
Porter, C., 506
Porter, C. O. L. H., 182, 192, 226
Porter, J., 228
Porter, L. W., 85, 88
Porter, M., 505
Posthuma, R., 507
Postlethwaite, B. E., 405
Postman, L., 188
Poteet, M. L., 539
Potheni, L., 364
Potter, J., 295
Potts, C., 538
Poundstone, W., 333
Powers, F. G., 427
Pratt, M. G., 260
Price, K. H., 370
Prieto Zamora, J. M., 382
Pritchard, D. R., 189
Probst, T. M., 507
Pruitt, D. G., 439
Pryor, F., 427
Pulakos, E. D., 33, 53, 58
Puranam, P., 476
Putka, D. J., 299
Putman, L. L., 406
Pyrillis, R., 193
Pyrko, I., 262
Q
Quinn, R., 153
Quinn, R. W., 120
R
Radosevich, D. J., 190
Rafaeli, A., 121, 406
Rafter, M. V., 86, 157
Ragins, B. R., 368
Rahe, R. H., 132, 154
Ramesh, A., 86
Ramirez, G. G., 476
Randall, M. L., 438
Randazzo, R., 151
Rao, H. R., 407
Rao, L., 414, 436
Rapp, A. A., 408
Rapp, T. L., 366, 408
Rapson, R. L., 121
Rasinski, K. A., 226
Rasor, M., 409
Raven, B., 435
Rayman, J., 299
Raymond, R., 73–74
Reade, C., 78
Reagan, R., 462
Reard, L., 32
Reardon, N., 478
Reay, T., 88
Rechnitzer, P. A., 156
Reed, A., II, 229
Reed, S., 382
Rees, D. W., 506
Reese, R., 462, 475
Regan, M. P., 409
Rehg, M. T., 228
Reilly, G., 407
Reilly, J., 221–222
Reilly, M. E., 332
Reingold, J., 414, 434, 436
Renard, M. K., 187
Resch, M. G., 155
Rest, J. R., 210, 228, 229
Retna, K. S., 262
Reuss, M., 469
Revis, J., 530
Reymen, I. M. M. J., 367
Reynolds, S. J., 224, 228, 229
Rezendes, M., 383
Rhoades, L., 89
Rhodan, M., 25
Rhodenizer, L., 260
Rice, R. W., 154
Rich, B. L., 119, 152–153, 156, 188, 476, 477
Richards, H., 365
Richey, B. E., 440
Ricketts, T., 265
Riediger, M., 302
Riggio, R. E., 458, 462, 474, 475
Riketta, M., 121
Rindermann, H., 330
Rindova, V. P., 223
Ritter, K. J., 153
Rivers, I., 57
Rivlin, G., 535
Rizzo, J. R., 153
Robb, W., 511
Robbie, M., 245
Roberson, L., 226
Roberson, O., 368
Roberts, B., 407
Roberts, B. W., 270, 295, 296
Roberts, J., 533
Roberts, R. D., 330, 331
Robertson, D. C., 209
Robertson, P. J., 507
Robie, C., 114, 122
Robin, J., 119
Robinson, D. L., 518
Robinson, S. L., 41, 56, 89
Robinson, W., 383
Roche, W. K., 440
Rockmann, K. W., 260
Rockstuhl, T., 471
Rodell, J. B., 86, 153
Roehling, M. V., 153, 157
Rogelberg, S. G., 472
Roger, D., 148
Rogers, C., 86–87
Rogers, W., 427
Roh, H., 368
Roisman, G. A., 329
Rokeach, M., 118, 294
Rometty, G., 414, 418
Roosevelt, F. D., 462
Final PDF to printer
579 Name Index
coL27660_nidx_568-582.indd 579 11/03/17 01:16 PM
Roseman, R. H., 297
Rosen, C. C., 57, 438
Rosenbaum, M. E., 372
Rosenbaum, W. B., 190
Rosenberg, M., 224
Rosenfeld, I., 414, 420
Rosenman, R. H., 138, 155–156
Rosenthal, R. A., 153
Ross, J., 261
Ross, L., 248, 261
Rosse, J. G., 88
Roth, P. L., 111, 122
Rothbard, N. P., 188
Rotter, J. B., 224, 276, 297
Rotundo, M., 40, 56
Rounds, J., 298
Rousseau, D. M., 27, 89, 223
Rowe, C. W., 431
Rowley, I., 534
Roznowski, M., 87, 322, 333
Ruffalo, M., 383
Ruffolo, R., 172
Rupp, D. E., 487
Rupp, D. R., 167, 189
Rusbult, C. E., 85, 86–87
Rush, M. C., 55
Rusli, E. M., 436
Russell, H. M., 407
Russell, J. A., 107, 120
Russell, K., 129
Russell, S. S., 98, 119
Rutherford, M. A., 438
Ryan, A. M., 368
Ryan, K., 402
Ryan, R. M., 167, 189, 191
Rylance, M., 427
Rynes, S. L., 189, 192
S
Saari, L. M., 122, 190
Saavedra, R., 366
Sabella, M. J., 409
Sablynski, C. J., 68, 86
Sackett, P. R., 56, 57, 286, 289, 300, 301–302,
329–330, 334
Sacks, D., 536
Safer, W., 332
Safian, R., 539
Sager, J. K., 72, 87
Sagie, A., 87
Sahadi, J., 157
Sakai, R., 494
Salaman, G., 536
Salancik, G. R., 436
Salanova, M., 188
Salas, E., 260, 403, 408, 409
Salerno, J., 403
Salgado, J. F., 286, 300
Salovey, P., 330–331
Saltz, J. L., 515, 536
Salz, J. L., 371
Sanchez-Runde, C. J., 294–295
Sandberg, S., 414
Saucier, G., 267, 295
Saul, J. R., 54, 153, 394, 404–405
Sauter, S., 152, 157
Sauve, E., 262
Scandura, T., 471
Scharf, F., Jr., 152, 157
Schat, A. C. H., 227
Schaubroeck, J., 154, 157
Schaude, G. R., 403
Schaufeli, W. B., 188
Scheibe, S., 158
Scheier, M. F., 22
Schein, E. H., 514, 530, 535, 537, 538
Schepers, D. H., 227
Schiff, D., 365
Schiller, S., 382
Schkade, D. A., 112, 122
Schlareth, A., 439
Schlender, B., 365
Schlicksupp, H., 403
Schmidt, F. L., 188, 302, 303, 322, 332, 333
Schmidt, J., 297
Schmidt, M. S., 328
Schminke, M., 229, 487
Schmit, M. J., 53, 333
Schnatterly, J., 370
Schneck, R. E., 436
Schneider, A., 403
Schneider, B., 188, 515, 534, 535, 536, 537
Schneider, P., 449
Schneier, C. E., 47, 58
Schoeff, M., Jr., 227, 230
Scholl, R. W., 177, 191
Schooler, C., 329
Schoorman, F. D., 198, 203, 223, 471
Schouten, M. E., 365
Schreiber, L., 383
Schriesheim, C. A., 122
Schuker, L. A., 472
Schultz, H., 512
Schwarber, K., 293
Schwartz, J., 27
Schwartz, J. E., 296
Schwartz, S. H., 118, 299
Schwartz, S. J., 168
Schwartz, T., 331
Schwarz, N., 112, 122
Schweitzer, M. E., 229
Schwind, K. M., 405
Scott, B. A., 55, 218
Scott, K., 202
Scott, K. L., 52
Scott, K. S., 26
Scott, R., 451
Scott, S., 224
Scott, W. R., 505
Scullen, S. E., 193
Scullen, S. M., 298
Sedlacek, W. E., 191
Seeger, M. W., 260
Segal, N. L., 297
Segarra-Ciprés, M., 259
Sego, D. J., 364, 402, 404
Seifert, C. F., 436
Seijts, G. H., 408
Selander, R. W., 448
Seldman, M., 437
Seligman, D., 332
Sellaro, C. L., 88
Sellnow, T. L., 260
Seltzer, J., 478
Selye, H., 155
Seo, M. G., 331
Seong, J. Y., 367
Sever, J. M., 223
Severance, L., 440
Shackleton, V. J., 518
Shadish, W. R., 27
Shaffer, J. A., 301
Shaffer, M. A., 78, 134, 332
Shalley, C. E., 298, 403
Shamir, B., 477, 478
Shapiro, D., 188
Shaw, D. G., 47, 58
Shaw, J. C., 119, 227
Shaw, J. D., 52, 89
Shaw, K., 364
Shaw, K. N., 190
Shawel, T., 53
Shea, G. P., 366, 408
Sheats, P., 352, 367
Sheetz, J., 487
Shell, R., 439
Shepherd, L., 85, 193
Sheppard, A., 403
Sherf, E. N., 331
Shi, J., 56
Shin, S. J., 477
Shirouzu, N., 525
Shockley, K. M., 154, 158
Shore, L. M., 89, 229, 471
Shotland, A., 253, 261
Shufu, L., 525
Shuit, D. P., 535
Shultz, J., 297
Sias, P. M., 406
Silver-Greenberg, J., 191
Silverman, R., 51
Silverman, R. E., 504, 505–506
Silverthorne, M., 26
Simmons, J. K., 272
Simon, B., 466
Simon, H., 504
Simon, H. A., 246, 260
Simon, W. L., 475
Simons, T., 225
Sims, H. P., Jr., 56, 364
Sims, R. R., 259
Sinar, E. F., 114, 122
Sinclair, R., 152, 157
Final PDF to printer
580 Name Index
coL27660_nidx_568-582.indd 580 11/03/17 01:16 PM
Singer, A. D., 87
Singer, J., 437
Singer, M., 505
Singh, K., 334
Singhapakdi, A., 211, 228
Sinha, R., 405–406
Sitkin, S. B., 223
Sivasubramaniam, N., 476
Skarlicki, D. P., 227
Skiles, J., 36
Skinner, B. F., 236
Skon, L., 372
Slater, D., 504
Sloan, T., 519
Slocum, J., 537
Slovic, P., 248, 260–261
Smerd, J., 261
Smith, A. P., 154
Smith, D. B., 537
Smith, E. E., 101
Smith, G., 539
Smith, L. M., 365
Smith, M., 538
Smith, M. A., 302
Smith, P. C., 98, 114, 118, 119, 122
Smith, P. K., 57
Smith-Crowe, K., 227
Snoek, J., 153
Snow, C. C., 506
Snyder, D., 313
Snyder, L., 189
Snyderman, B. B., 27
Soetjipto, B. W., 431
Sohre, K., 159
Somech, A., 436
Sommerkamp, P., 470
Song, L. J., 317, 331
Sonnentag, S., 152, 158
Sonntag, K., 154, 156
Sorensen, K. L., 297
Sorenstam, A., 306
Soto, C. J., 295
Sowa, D., 89
Sparrowe, R. T., 431, 470
Spearman, C., 330
Spector, P. E., 153, 156, 182, 192, 226, 409
Speizer, I., 189
Spencer, L., 367
Spielberg, S., 427
Spieler, I., 158
Spitzmuller, C., 98, 119
Spitzmuller, M., 300
Spitznagel, E., 87
Spodick, N., 226
Spreitzer, G. M., 191, 499, 507
Srivastava, S., 538
Staats, B. R., 157
Stack, L. C., 224
Stahelski, A. J., 436
Stahl, G. K., 134, 538–539
Stainton, L., 88
Stajkovic, A. D., 27, 182, 192
Stalker, G. M., 489
Stamov-Roßnagel, C., 158
Stankov, L., 331
Stanley, D. J., 55, 111, 122, 182, 253, 261,
465, 477
Stanton, J. M., 98, 114, 119
Stark, S., 296
Stasster, G., 369
Staw, B. M., 261
Stead, D., 225, 298
Stebbins, R. A., 85
Steel, P., 297, 300
Steers, R. M., 85, 88, 188, 294–295
Steffy, L., 537
Stein, J., 440
Steiner, I. D., 367, 402
Stephens, J., 408
Stern, Z., 536
Sternberg, R. J., 258, 329
Stevens, C., 468
Stevens, M. J., 395, 409
Stevenson, A., 257
Steward, D., 369
Stewart, G. L., 296, 358, 364, 366, 367, 368
Stewart, J., 461
Stibbe, M., 535
Stillings, J., 189
Stillwell, D., 471
Stogdill, R. M., 452, 454, 471
Stone, A. A., 112, 122
Stone, E., 272
Stöppler, M. C., 155
Stout, R. J., 409
Stowell, A., 427
Strauss, J. P., 296
Stroebe, W., 403
Strong, E. K., 298
Strum, A., 56
Suh, E., 113
Sulkowicz, K., 191, 192
Sullenberger, C., 36
Sundstrom, E., 340, 365, 371–372
Sutcliffe, K. M., 260
Suttle, J. L., 168, 190
Sutton, R. I., 121, 403, 406
Swanson, C., 466
Swanson, N., 152, 157
Swider, B., 537
Swisher, K., 439
T
Taggar, S., 408
Tai, B., 258
Tait, M., 122
Takemoto-Chock, N. K., 295
Takeuchi, R., 308
Tam, K. P., 299
Tams, S., 174
Tang, T. L., 169, 189
Tangirala, S., 54
Tannenbaum, S. I., 253, 261, 262, 405
Taras, V., 300
Tasa, K., 408
Taylor, A., III, 26, 226, 471–472, 506
Taylor, F. W., 27, 119
Taylor, O. A., 56
Tchaikovsky, P. I., 320
Teague, P., 440
Tedlow, R. S., 436
Tellegen, A., 107, 120
Tenbrunsel, A. E., 227
Tepper, B. J., 52, 226, 227
Terlep, S., 439, 472
Terry, D. J., 260
Tesluk, P. E., 331, 404
Tetrick, L. E., 229
Tett, G., 495, 506
Tett, R. P., 301, 303
Tetzeli, R., 469, 503
Thaler, R., 245
Thallner, P., 83
Thatcher, J. B., 437
Thatcher, S. M. B., 54
Theobald, N. A., 486, 504
Theresa, Mother, 456
Thibaut, J., 204, 225
Thierry, H., 182, 192
Thiry, K., 513
Thoma, S. J., 229
Thomas, G., 471
Thomas, K. W., 189, 191, 425, 438, 439
Thomas, L. L., 332, 333
Thompson, B., 503
Thompson, J., 330
Thompson, J. A., 191
Thompson, J. D., 366
Thompson, L. L., 406
Thoreson, C. J., 111, 121, 296–298
Thoreson, J. D., 298
Thorndike, E. L., 188
Thorndike, R. K., 330
Thurgood, G. R., 358, 366
Thurstone, L. L., 330
Tims, M., 120
Tisdale, J., 152, 157
Tjosvold, D., 366
Tkaczyk, C., 117, 118–119, 196, 537
Todd, P. M., 248
Todorova, G., 406
Toh, S. M., 505
Toker, S., 159
Tomlinson, E. C., 223, 225, 228
Tomlinson-Keasey, C., 296
Topolnytsky, L., 85, 111, 122, 182, 253, 261,
465, 477
Toppinen-Tanner, S., 158
Tracey, J. B., 262
Traver, H., 253, 261
Treadway, D. C., 422, 437
Trees, L., 259, 262
Treinen, J. J., 365
Final PDF to printer
581 Name Index
coL27660_nidx_568-582.indd 581 11/03/17 01:16 PM
Treviño, L. K., 224, 228, 229, 259
Trevor, C. O., 88
Triandis, H. C., 356, 369, 370
Trice, H. M., 534
Tripodi, T., 156
Trochim, W. M. K., 405
Trommsdorff, G., 402
Troth, A. C., 406
Truman, H. S, 457, 474
Trump, D., 461
Truxillo, D. M., 122
Tsai, W. C., 121
Tsui, A. S., 86, 299, 534
Tucci, S., 383
Tucker, J. S., 296
Tuckman, B. W., 365
Tuggle, C. S., 370
Tuijl, H. F. J. M., 367
Tuna, C., 507
Tupes, E. C., 295
Turing, A., 485
Turner, A. N., 119
Tversky, A., 248, 260–261, 262
Twain, M., 265
Twenge, J. M., 83
Tyldum, M., 485
Tyler, T. R., 226
Tyrrell, D. A., 154
Tzafrir, S., 407
U
Ubell, R., 365
Uhl-Bien, M., 445, 470
Ulmer, R. R., 260
Ulukaya, H., 453
Urban, K., 178
Urbina, S., 329
Ury, W., 428, 439–440
V
Vail, P., 478
Valle, M., 438
Van de Ven, A. H., 366, 403
Van de Vliert, E., 406
Van den Bos, K., 224
Van Der Vegt, G. S., 404
Van der Velde, M. E. G., 89
Van der Zee, K. I., 284
Van Direrndonck, D., 499
Van Dyne, L. V., 38, 54, 55, 366, 368
Van Eerde, W., 182, 192
Van Fleet, D. D., 474
Van Ginkel, W. P., 371, 408
Van Iddekinge, C. H., 299
Van Kleef, G. A., 370
Van Knippenberg, D., 364, 369–371, 403, 408
Van Lange, P. A. M., 439
Van Maanen, J., 530, 538
Van Oudenhoven, J. P., 284
Van Rutte, C. G., 367
Van Scotter, J. R., 56, 228
Vance, A., 535
Vandermey, A., 414
VandeWalle, D., 242, 259
Vanian, J., 507
Vardaman, J. M., 85
Vartiainen, M., 365
Vashidi, D. R., 408
Vecchio, R. P., 474
Veiga, J. F., 26
Velthouse, B. A., 189, 191
Venkataramani, V., 366
Verbeke, W., 534
Verducci, T., 293
Vernon, P. A., 475
Vernon, P. E., 330
Vidmar, N. J., 371
Vidrine, D., 129
Viechtbauer, W., 270, 295
Villado, A. J., 405, 529, 539
Villeneuve, D., 350
Vinson, G., 477
Viswesvaran, C., 111, 122, 260, 286, 300,
302–303
Vitell, S. J., 211, 228
Voelpel, S. C., 369
Vogelstein, F., 330
Volgering, M., 534
Volpe, C. E., 409
Von Krogh, G., 403
Vroom, V. H., 188, 450, 471, 472
Vuori, J., 158
W
Wageman, R., 372
Wagner, D. T., 405
Wagner, J. A., III, 368, 371, 472, 505
Wagner, R., 80
Wagner, R. K., 258
Wah, L., 258
Wahba, P., 414
Waldman, D. A., 476
Walker, L., 204, 225
Wall, T. D., 365
Wallace, A. M., 518
Wallace, J. C., 536
Walsh, B., 461
Walster, W., 225
Walter, F., 331, 367, 404, 505
Walter, S. L., 367
Walton, K. E., 270, 295
Walton, T., 539
Walumbwa, F. O., 477, 535
Walz, S. M., 55
Wanberg, C. R., 539
Wanek, J. E., 289, 302
Wang, C., 503
Wang, D., 476
Wang, H., 476
Wang, M., 54, 56
Wang, S. L., 419
Wang, Y., 505
Wanous, J. P., 539
Warkentin, M., 406
Warnick, J., 400
Warr, P. B., 472
Warren, B., 504
Warren, C. R., 297
Wasti, S. A., 300
Watanabe, S., 122
Waterman, A. S., 168
Watson, D., 107, 120
Watson, E., 521
Watson, W., 369
Wayland, M., 506
Wayne, J. H., 154
Wayne, S. J., 89, 154, 436–437, 470, 471
Weaver, G. R., 224, 228
Weaver, N., 538
Webb, C., 15
Webb, J., 512
Webb, W. M., 224
Weber, J., 230
Weber, T., 478
Weber, Y., 538
Wee, S., 334
Wegner, D. M., 408
Wehrum, K., 535
Wei, F., 156
Weick, K. E., 244, 260
Weigelt, O., 56
Weigert, A., 225
Weinberg, J., 499, 507
Weingart, J. R., 406
Weingart, L. R., 405, 406, 439
Weinstein, M., 478
Weiss, A., 330
Weiss, H. M., 53, 55, 120, 121, 240, 258, 301
Weitz, J., 275
Weitzel, J. R., 474
Welbourne, T. M., 26
Welch, D., 506
Welch, E. R., 55, 121
Welch, J. F., Jr., 48–49, 51, 58
Weller, I., 88
Wellman, N., 471
Welsh, E. T., 539
Wendorf, C. A., 229
Wesson, M. J., 173, 182, 190–192, 226, 300, 538
West, M. A., 518, 534
West, S. G., 27
Wheeler-Smith, S. L., 407
Whetten, D. A., 26, 440
Whitaker, F., 350
Whiting, S. W., 55
Whitman, M., 158, 414, 500
Whitney, K., 370
Wholey, D. R., 506
Widen, R., 409
Wieczner, J., 414
Wiemann, S., 302
Wiener, Y., 86
Wiesenfeld, B. M., 206, 226
Final PDF to printer
582 Name Index
coL27660_nidx_568-582.indd 582 11/03/17 01:16 PM
Wigdor, A. K., 334
Wild, R. E., 227
Wiles, P., 512
Wilke, H. A. M., 224
Williams, J., 439
Williams, K., 368, 372, 402–403
Williams, K. D., 189, 407
Williams, K. Y., 369
Williams, M. L., 478
Williams, S. W., 246
Williamson, I. O., 223
Wilpers, S., 297
Winer, B. J., 473
Winerman, L., 329
Wingard, D. L., 296
Winkel, D. E., 332
Withey, M. J., 87
Witt, L. A., 438
Wittenbaum, G., 369
Wolf, S., 522, 538
Wolfe, D., 153
Wong, A., 366
Wong, C. S., 317, 331
Wong, D. T., 302
Wong, M., 419
Wood, D., 295
Wood, R. E., 182, 190
Woodman, N., 455–456
Woodward, J., 505
Woolley, S., 188
Woolman, C. E., 509
Woolum, A., 57
Worchel, P., 224, 369
Worthen, B., 507
Wraith, S., 168
Wright, J., 368
Wright, T. A., 225
Wrightsman, L. S., Jr., 224
Wrzesniewski, A., 120
Wu, C., 158
Wu, J. B., 86, 534
Wulf, J., 504
Wyden, R., 397
Wyland, R. L., 332
X
Xanthopoulou, D., 188
Xie, J. L., 40
Xin, K., 419
Xin, K. R., 534
Y
Yagan, S., 482
Yan, M., 57
Yang, J., 121
Yang, J. L., 472
Yang, M. M., 419
Yang, T. S., 158
Yank, J. L., 371
Yarnold, P. R., 156
Yarow, J., 157
Yetton, P. W., 472
Yglesias, M., 503
Young, C. E., 88
Young, J. S., 475
Young, M., 365
Young, M. I., 250
Youngcourt, S., 259–260
Yu, J., 367
Yukl, G. A., 415, 419, 431, 435–436, 437, 447,
470, 474
Yun, S., 418, 436
Z
Zablah, A. R., 536
Zaccaro, S. J., 405, 409, 471
Zajac, D. M., 85, 286, 300
Zakay, E., 477
Zapata-Phelan, C. P., 300
Zardkoohi, A., 191
Zarya, V., 414
Zedeck, S., 300
Zeidner, M., 330
Zemba, Y., 250
Zhan, Y., 56
Zhang, A. Y., 86
Zhang, X., 419
Zhang, X. A., 367
Zhang, Y., 152–153, 156, 477
Zhang, Z., 505, 534
Zhao, H., 89
Zhao, H. H., 367
Zhao, P., 334
Zhou, J., 298, 403, 437–438, 477
Zhu, W., 476, 477
Ziegert, J. C, 371
Zielinski, S., 293
Zika, S., 153
Zillman, C., 83
Zimmerman, R. D., 301, 529, 537, 539
Ziyou, Y., 366
Zohar, D., 536
Zou, X., 299
Zuckerman, A., 297
Final PDF to printer
583
coL27660_cidx_583-586.indd 583 11/01/17 07:52 AM
Company Index
3M, 166, 196, 517
20th Century Fox, 451
A
Accenture, 14, 49
AC/DC, 342
Aerosmith, 342
Aetna, 484
Aflac, 14, 449
A.G. Edwards, 80
Air France, 32
Airbnb, 528, 530
Airbus, 487
Albertsons, 288
Alcoa, 487
Alcon Labs, 68
Aldamisa Entertainment, 71
Alphabet, 414, 418
Amazon Studios, 99
Amazon.com, 46, 196, 411, 412
American Apparel, 449
American Express, 14, 144, 196
Anheuser-Busch, 526, 528
Anna Sui, 211
Anthropologie, 211
AOL/Time Warner, 525
Apple Computer, 12, 24, 196, 375, 414–415,
418, 457–458, 460, 481, 482, 489, 490,
502–503, 511, 521, 523–524
AT&T, 14, 389, 500
B
Babbo (New York City), 234
Baird, 14
Bank of America, 144
Bank of England, 495
Bayer, 32
Becton, Dickinson, and Company, 421
Ben & Jerry’s, 79, 81
Berkshire Hathaway, 196, 246
Best Buy, 288
Bloomberg Businessweek, 500
BlueCross BlueShield of Tennessee, 146
BMW, 10, 196, 278, 525
Boeing, 78, 254, 493, 500
Booz Allen Hamilton, 107
Boston Consulting, 14
Boston Globe, 383
Boston Red Sox, 265
BP, 129, 516
Bridgewater Associates, LP, 233, 234, 256–257
Bristol-Myers Squibb, 497
British Airways, 520
British Petroleum (BP), 129, 516
Burger King, 18–19
Burt’s Bees, 526
C
Campbell Soup Company, 466, 494
Capital One, 14
Care.com, 451, 513
CareerBuilder.com, 201
Cargill, 487
Cases
Apple Computer, 481, 502–503
Bridgewater Associates, LP, 233, 256–257
Chicago Cubs, 265, 293
Delta/United, 509, 532–533
Federal Bureau of Investigation (FBI), 305,
327–328
General Electric (GE), 29, 51
General Motors (GM), 443, 468–469
Google, 161, 186–187
Honeywell, 125, 150–151
IKEA, 5, 24–25
Microsoft, 375, 399–400
Publix, 93, 117
PwC, 61, 83
SeaWorld, 195, 221–222
Whole Foods Market, 337, 361–362
Zappos, 411, 434
Central Intelligence Agency (CIA), 311, 427
Cheesecake Factory, 14
Chemical Bank, 314
Chevron, 516
Chicago Cubs, 265, 293
Chicago Police Department, 495
Chipotle, 484
Chobani, 453
Cirque du Soleil, 517
Cisco Systems, 516, 523, 530
Cleveland Clinic, 495
Clif Bar & Company, 517
Clorox, 526
CNN, 195
Coca-Cola Company, 196, 209, 389, 486
Columbia Pictures, 21
Comcast, 69
Computer Associates International, 219
Con Edison, 343
Consumer Reports, 205
Container Store, 14
Continental Airlines, 509
Corning, 146
Costco, 24, 196
Cruise Automation, 468
CVS Pharmacy, 288, 414
D
DaimlerChrysler, 525
Dartmouth University, 461
Davita, 513
Dell, 487
Deloitte LLP, 14, 414
Delta, 14, 509, 526, 532–533
Denver International Airport, 250–251
Diane von Furstenberg, 211
DiscoVision, 39–40
Dish Network, 428
Domino’s Pizza, 201
Dow Corning, 495
Dragonfly, 278
DreamWorks Animation, 97, 100
Duke Energy, 414
E
Edward Jones, 14
Enron, 390
Ernst & Young (EY), 14, 254
EuropaCorp., 521
Everett Clinic, 184
Exxon, 250
Exxon/Mobil, 516, 525
F
Facebook, 49, 66, 72, 173, 196, 239, 247, 375,
389, 414, 491, 494, 495, 528
Farmer’s Insurance, 466
Federal Bureau of Investigation (FBI), 305,
327–328
FedEx, 14, 196, 389, 520, 526
Fiat-Chrysler, 447–448, 494, 497
Fidelity Investments, 414
Filmnation, 216
Financial Times, 495
Flashlight Films, 36
Fleet Bank, 144
Forbes, 337
Ford Motor Company, 497, 525
Forever 21, 211–212, 214–215
Forte Hotels, 314
Fortune, 5, 12, 14, 48, 61, 93, 117, 147, 196,
337, 411, 413, 443, 456, 458, 500, 515,
517
Four Seasons, 14
Freescale Semiconductor Inc., 147
Fresh Market, 288
G
Gallup, 163
Geely Holding Group, 525
Genentech, 14
General Dynamics, 414
General Electric (GE), 29, 48–49, 51, 196,
219, 247, 389, 396, 453, 455, 495
General Mills, 97, 520
General Mills Institute, 97
General Motors (GM), 414, 443, 444, 447,
449, 456, 468–469, 497, 500, 523
Final PDF to printer
584 Company Index
coL27660_cidx_583-586.indd 584 11/01/17 07:52 AM
Girl Scouts, 353
Goldman Sachs, 14, 247, 494, 524
Google, 14, 45, 97, 143, 161, 186–187, 196, 247,
310, 323, 375, 414, 416, 417, 418, 419,
453, 468, 521
Google Hangouts, 389
GoPro, 455–456
Grant Thornton, 147–148
Green Bay Packers, 137
H
Halliburton, 247
Harrah’s, 528
Herman Miller, 254
Hewlett-Packard (HP), 414, 493, 500, 526
Hilton, 14
Hogan Assessment Systems, 289
Home Depot, 219, 512
Honda Motor, 511
Honeywell, 125, 127, 150–151
HP/Compaq, 525
HQ Global Workplaces, 494
Humana, 147
Humane Society, 221
Hyatt, 14
Hyundai, 10
I
IBM, 40, 80–81, 196, 281–283, 311, 343, 414,
418, 494, 496, 511
IDEO, 346–347, 378–380, 512
IKEA, 5, 14, 24–25, 73
InBev, 526
Infosys, 180
Intel, 97, 415, 449, 486
International Harvester Company, 452
Interpublic Group, 516
Intuit, 14
Iron Mountain, 448
J
J. Crew, 452
Japan Airlines, 250
JCPenney, 492, 523–524
J.D. Power and Associates, 10
Jet Blue, 530
Jive, 389
J.M. Smuckers, 219
John Deere, 254
Johnson & Johnson, 196
Johnsonville Sausage, 32
JPMorgan Chase, 196, 531
K
Kaiser Permanente, 247
KFC, 512
KI, 512
Kiss, 342
Kohl’s, 24, 492
KPMG, 14
Kraft Foods, 420
Kronos, 288
L
Laps Entertainment, 350
LEGO, 170
Levantine Films, 311
Lexus, 46
LinkedIn, 389
L.L. Bean, 148
Lockheed Martin, 414
Logitech, 343
L’Oréal, 315
Lowe’s, 249
M
M5, 513
Macy’s, 492
Mail Boxes Etc., 526
Manheim Auctions, Inc., 389
Marriott International, 14, 196, 288, 514
Mars, Inc., 14, 531
MasterCard, 448
Match.com, 482
Mayo Clinic, 14, 125
MCA, 39–40
McDonald’s, 216, 486, 487
McGraw-Hill Education, 531
MCI, 212
McKinsey, 163
Meijer, 201
Men’s Wearhouse, 34, 513
Mensa, 201
Mercedes-Benz, 525
Microsoft, 12, 97, 173, 196, 247, 323, 375,
399–400, 416, 419, 489, 494, 500, 502,
512, 522
Microsoft Sharepoint, 389
Mind/Body Medical Institute, 146
MindTree, 179, 180
Minnesota Vikings, 137
Missionaries of Charity, 456
Mitsubishi Motor Manufacturing of America,
42
Mitsubishi Motors, 525
Mondelez International, 414, 420, 491
Monsanto, 79
Monster Cable, 320
Morgan Stanley, 531
Motorola, 396
MWH, 416
N
Naismith College, 31
NASCAR, 397
National Aeronautics and Space
Administration (NASA), 311, 390, 451
National Basketball Association (NBA), 21
National Collegiate Athletic Association
(NCAA), 30, 72
National Football League (NFL), 137, 325,
461, 524
National Institute for Occupational Safety and
Health (NIOSH), 126
Nationwide, 14
Netflix, 195, 196, 491, 512
Netimpact.org, 69
New Belgium Brewing, 512
New York Jets, 137
New York University, 212
New York Yankees, 21
Newsweek, 337
NFL (National Football League), 137, 325,
461, 524
Nike, 196, 219, 511
Nisshinbo Automotive, 35
Nisshinbo Holdings, 35
Nordstrom, 14, 97, 196
Nortel Networks, 523
Northwest Airlines, 509, 526
Novant Health, 512
Nucor, 359
NuStar Energy, 96
O
Oakland Athletics (A’s), 21
Occidental Petroleum, 520
Occupational Information Network (O*NET),
34–35, 307, 309, 318, 329
Ohio State University, 453, 460
Oracle, 414, 484
Orpheus Chamber Orchestra, 394
Ortho-McNeil Pharmaceutical, 247
P
Paramount Pictures, 178, 245
Participant Media, 129, 383
Patagonia, 516–517
Pennsylvania State University, 212
People for the Ethical Treatment of Animals
(PETA), 195
PepsiCo, 79, 414, 491
Perkins COIE, 97
PETA (People for the Ethical Treatment of
Animals), 195
Pfizer, 416
Philip Morris, 528
Pixar, 342, 343
Pizza Hut, 512
Praxair, 240
PricewaterhouseCoopers (PwC), 14, 61, 83,
144, 254
Principal Financial Group, 80
Principia Group, The, 511–512
Procter & Gamble (P&G), 79, 196, 338, 493
Publix, 14, 93, 117
Purdue University, 212
PwC (PricewaterhouseCoopers), 14, 61, 83,
144, 254
Final PDF to printer
585Company Index
coL27660_cidx_583-586.indd 585 11/01/17 07:52 AM
Q
Quicken Loans, 14, 107
QuikTrip, 14
R
Regus Group, 494
REI, 14
Ritz-Carlton, 46
RIVA, 135
RJR/Nabisco, 525
Robert W. Baird, 14
Rolling Stones, 342
Rypple, 49, 184
S
Sabre Holdings, 66
Salary.com, 176
Salesforce.com, 196, 528
Salomon Brothers, 240
SAS, 14, 65–66, 67, 517
SeaWorld, 195, 221–222
Sheetz, 487
Shell Oil, 254, 516
Sigma Assessment Systems, 289
Simon & Schuster, 313
Smithsonian Design Museum, 125
Society for American Baseball Research
(SABR), 21
Sony, 490, 492, 493, 494, 495, 502
Southwest Airlines, 34–35, 196
Sports Authority, 288
Starbucks, 97, 196, 512
Summit Entertainment, 129, 272
Symantec, 184
T
Taco Bell, 512
Target, 24, 288
TD Ameritrade Holding Corporation, 265
Tesla, 468
TestMaster, 289
Time, Inc., 450
Time Warner, 500, 525
Toyota Motor, 34, 339, 340, 494
Toys “R” Us, 288
Trader Joe’s, 93, 514
Transocean, 129
Travelocity, 66
TRW, 343
Twitter, 49, 72, 239, 389, 513
U
Uber, 425–426, 468, 516
UBS, 495
United Airlines, 250–251, 397, 509, 532–533
U.S. Air Force, 39, 315, 427
U.S. Army, 39
U.S. Bureau of Labor Statistics, 62
U.S. Central Intelligence Agency (CIA),
311, 427
U.S. Department of Labor, 45
U.S. Federal Burea of Investigation (FBI), 305,
327–328
U.S. National Aeronautics and Space
Administration (NASA), 311, 390, 451
U.S. National Institute for Occupational Safety
and Health (NIOSH), 126
U.S. National Transportation Safety Board, 36
U.S. Navy, 219
U.S. Occupational Safety and Health
Administration (OSHA), 195
U.S. Office of Naval Research, 452
U.S. Postal Service, 397, 526
U.S. Securities and Exchange Commission
(SEC), 13, 177
U.S. Veterans Affairs Department, 206–207
U.S. Veterans Health Administration (VHA),
206–207
Universal Studios, 288
University of California at Berkeley, 212,
270–271
University of Connecticut, 31
University of Michigan, 244, 453
University of Minnesota, 267
UPS, 146, 512–513, 526
US Airways, 36
USAA, 196, 515
V
Valve Corporation, 484
Verizon Business, 20
Verizon Communications, 20, 240, 254
Village People, 397
Vodafone, 420
Volvo Car Corporation, 525
W
Walgreens, 30
Walmart, 24, 201, 219, 483
Walt Disney, 196, 427, 524
Wegman’s, 14
Weinstein, Company, 485
Wells Fargo, 30, 247, 519
Whataburger, 520
Whole Foods Market, 14, 337, 361–362, 484,
511, 513, 514
W.L. Gore, 487, 491
Wonderlic, 289, 323–325, 333
Workforce Management, 12
World Values Study Group, 198
Wyeth, Inc., 172
X
Xerox, 146, 240, 241, 359, 495
Xonex Relocation, 143
XTO Energy, 516
Y
Yahoo!, 146, 184, 512, 526
YouTube, 72
Yum Brands Inc., 512
Z
Zappos, 411, 412, 413, 418, 420–421, 434
ZZ Top, 342
Final PDF to printer
coL27660_cidx_583-586.indd 586 11/01/17 07:52 AM
Final PDF to printer
ORGANIZATIONAL BEHAVIOR
About the Authors
Preface
Acknowledgments
Text Features: OB Insert Boxes
Additional Resources
Brief Contents
Table of Contents
PART 1: INTRODUCTION TO ORGANIZATIONAL BEHAVIOR
CHAPTER 1: What Is Organizational Behavior?
What Is Organizational Behavior?
Organizational Behavior Defined
An Integrative Model of OB
Does Organizational Behavior Matter?
Building a Conceptual Argument
Research Evidence
So What’s So Hard?
How Do We “Know” What We Know About Organizational Behavior?
Summary: Moving Forward in This Book
TAKEAWAYS
KEY TERMS
DISCUSSION QUESTIONS
CASE
EXERCISE
ENDNOTES
CHAPTER 2: Job Performance
Job Performance
What Does It Mean to Be a “Good Performer”?
Task Performance
Citizenship Behavior
Counterproductive Behavior
Summary: What Does It Mean to Be a “Good Performer”?
Trends Affecting Performance
Knowledge Work
Service Work
Application: Performance Management
Management by Objectives
Behaviorally Anchored Rating Scales
360-Degree Feedback
Forced Ranking
Social Networking Systems
TAKEAWAYS
Key Terms
DISCUSSION QUESTIONS
CASE
Exercise
ENDNOTES
CHAPTER 3: Organizational Commitment
Organizational Commitment
What Does It Mean to Be “Committed”?
Types of Commitment
Withdrawal Behavior
Summary: What Does It Mean to Be “Committed”?
Trends That Affect Commitment
Diversity of the Workforce
The Changing Employee-Employer Relationship
TAKEAWAYS
KEY TERMS
DISCUSSION QUESTIONS
CASE
EXERCISE
ENDNOTES
Application: Commitment Initiatives
PART 2: INDIVIDUAL MECHANISMS
CHAPTER 4: Job Satisfaction
Job Satisfaction
Why Are Some Employees More Satisfied Than Others?
Value Fulfillment
Satisfaction with the Work Itself
Mood and Emotions
Summary: Why Are Some Employees More Satisfied Than Others?
How Important Is Job Satisfaction?
Life Satisfaction
TAKEAWAYS
KEY TERMS
DISCUSSION QUESTIONS
CASE
EXERCISE
ENDNOTES
Application: Tracking Satisfaction
CHAPTER 5: Stress
Stress
Why Are Some Employees More “Stressed” Than Others?
Types of Stressors
How Do People Cope with Stressors?
The Experience of Strain
Accounting for Individuals in the Stress Process
Summary: Why Are Some Employees More “Stressed” Than Others?
How Important Is Stress?
Application: Stress Management
Assessment
Reducing Stressors
Providing Resources
Reducing Strains
TAKEAWAYS
KEY TERMS
DISCUSSION QUESTIONS
CASE
EXERCISE
ENDNOTES
CHAPTER 6: Motivation
Motivation
Why Are Some Employees More Motivated Than Others?
Expectancy Theory
Goal Setting Theory
Equity Theory
Psychological Empowerment
Summary: Why Are Some Employees More Motivated Than Others?
TAKEAWAYS
KEY TERMS
DISCUSSION QUESTIONS
CASE
EXERCISE
ENDNOTES
How Important Is Motivation?
Application: Compensation Systems
CHAPTER 7: Trust, Justice, and Ethics
Trust, Justice, and Ethics
Why Are Some Authorities More Trusted Than Others?
Trust
Justice
Ethics
Summary: Why Are Some Authorities More Trusted Than Others?
TAKEAWAYS
KEY TERMS
DISCUSSION QUESTIONS
CASE
EXERCISE
ENDNOTES
How Important Is Trust?
Application: Social Responsibility
CHAPTER 8: Learning and Decision Making
Learning and Decision Making
Why Do Some Employees Learn to Make Decisions Better Than Others?
Types of Knowledge
Methods of Learning
Methods of Decision Making
Decision-Making Problems
Summary: Why Do Some Employees Learn to Make Decisions Better Than Others?
TAKEAWAYS
KEY TERMS
DISCUSSION QUESTIONS
CASE
EXERCISE
ENDNOTES
How Important Is Learning?
Application: Training
PART 3: INDIVIDUAL CHARACTERISTICS
CHAPTER 9: Personality and Cultural Values
Personality and Cultural Values
How Can We Describe What Employees Are Like?
The Big Five Taxonomy
Other Taxonomies of Personality
Cultural Values
Summary: How Can We Describe What Employees Are Like?
How Important Are Personality and Cultural Values?
Application: Personality Tests
TAKEAWAYS
KEY TERMS
DISCUSSION QUESTIONS
CASE
EXERCISE
ENDNOTES
CHAPTER 10: Ability
Ability
What Does It Mean for an Employee to Be “Able”?
Cognitive Ability
Emotional Ability
Physical Ability
Summary: What Does It Mean for an Employee to Be ÒAbleÓ?
How Important Is Ability?
Application: Selecting High Cognitive Ability Employees
TAKEAWAYS
KEYTERMS
DISCUSSION QUESTIONS
CASE
EXERCISE
ENDNOTES
PART 4: GROUP MECHANISMS
CHAPTER 11: Teams: Characteristics and Diversity
Team Characteristics and Diversity
What Characteristics Can Be Used to Describe Teams?
Team Types
Variations Within Team Types
Team Interdependence
Team Composition
Summary: What Characteristics Can Be Used to Describe Teams?
How Important Are Team Characteristics?
Application: Team Compensation
TAKEAWAYS
KEY TERMS
DISCUSSION QUESTIONS
CASE
EXERCISE
ENDNOTES
CHAPTER 12: Teams: Processes and Communication
Team Processes and Communication
Why Are Some Teams More Than the Sum of Their Parts?
Taskwork Processes
Teamwork Proceses
Communication
Team States
Summary: Why Are Some Teams More Than the Sum of Their Parts?
How Important Are Team Processes?
Application: Training Teams
Transportable Teamwork Competencies
Cross-Training
Team Process Training
Team Building
TAKEAWAYS
KEY TERMS
DISCSSION QUESTION
CASE
EXERCISE
ENDNOTES
CHAPTER 13: Leadership: Power and Negotiation
Leadership: Power and Negotiation
Why Are Some Leaders More Powerful Than Others?
Acquiring Power
Using Influence
Power and Influence in Action
Negotiations
Summary: Why Are Some Leaders More Powerful Than Others?
How Important Are Power and Influence?
Application: Alternative Dispute Resolution
TAKEAWAYS
KEY TERMS
DISCUSSION QUESTIONS
CASE
EXERCISE
ENDNOTES
CHAPTER 14: Leadership: Styles and Behaviors
Leadership: Styles and Behaviors
Why Are Some Leaders More Effective Than Others?
Leader Decision-Making Styles
Day-to-Day Leadership Behaviors
Transformational Leadership Behaviors
Summary: Why Are Some Leaders More Effective Than Others?
How Important Is Leadership?
Application: Leadership Training
TAKEAWAYS
KEY TERMS
DISCUSSION QUESTIONS
CASE
Exercise
ENDNOTES
PART 5: ORGANIZATIONAL MECHANISMS
CHAPTER 15: Organizational Structure
Organizational Structure
Why Do Some Organizations Have Different Structures Than Others?
Elements of Organizational Structure
Organizational Design
Common Organizational Forms
Summary: Why Do Some Organizations Have Different Structures Than Others?
How Important Is Structure?
Application: Restructuring
TAKEAWAYS
KEY TERMS
DISCUSSION QUESTIONS
CASE
EXERCISE
ENDNOTES
CHAPTER 16: Organizational Culture
Organizational Culture
Why Do Some Organizations Have Different Cultures Than Others?
Culture Components
General Culture Types
Specific Culture Types
Culture Strength
Maintaining An Organizational Culture
Changing An Organizational Culture
Summary: Why Do Some Organizations Have Different Cultures Than Others?
How Important Is Organizational Culture?
Application: Managing Socialization
TAKEAWAYS
KEY TERMS
DISCUSSION QUESTIONS
CASE
EXERCISE
ENDNOTES
INTEGRATIVE CASES
GLOSSARY/SUBJECT INDEX
NAME INDEX
COMPANY INDEX
2018-02-21T19:30:52+0000
Preflight Ticket Signature
|
Kingdom of Saudi Arabia Ministry of Education Saudi Electronic University |
المملكة العربية السعودية وزارة التعليم الجامعة السعودية الإلكترونية |
College of Administrative and Financial Sciences
Assignment 3
Organizational Behaviour (MGT 301)
Due Date: 30/04/2022 @ 23:59
|
Course Name: Organizational Behaviour |
Student’s Name: |
|
Course Code: MGT301 |
Student’s ID Number: |
|
Semester: Second |
CRN: |
|
Academic Year:2021-22-2nd |
For Instructor’s Use only
|
Instructor’s Name: |
|
|
Students’ Grade: 00/ 10 |
Level of Marks: High/Middle/Low |
General Instructions – PLEASE READ THEM CAREFULLY
· The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
· Assignments submitted through email will not be accepted.
· Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
· Students must mention question number clearly in their answer.
· Late submission will NOT be accepted.
· Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
· All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
· Submissions without this cover page will NOT be accepted.
Learning Outcomes:
|
1 |
Examine the differences and similarities between leadership, power, and management.. (CLO5). |
Reference Source:
Textbook:-
Colquitt, J. A., LePine, J. A., & Wesson, M. J. (2021). Organizational behavior: Improving performance and commitment in the workplace (7th ed). Burr Ridge, IL: McGraw-Hill Irwin.
Case Study: –
Case: SPOTIFY
Assignment Question(s):
Part:-1
1. Is it reasonable for a CEO like Ek to expect his employees to have the same passion and commitment to their work as he does? (02 Marks ) (Min words 150-200)
2. Does Ek fit your perception of what a “transformational leader” is supposed to be? (02 Marks ) (Min words 150-200)
3. What are the advantages and disadvantages of having a leader with such a strong vision for the company? (02 Marks ) (Min words 150-200)
Important Note: – Support your submission with course material concepts, principles, and theories from the textbook and at least two scholarly, peer-reviewed journal articles.
Part:-2
Discussion questions: Please read Chapter 14 “
Leadership: Styles and Behaviors”
carefully and then give your answers on the basis of your understanding.
4. Before reading this chapter, which statement did you feel was more accurate: “Leaders are born” or “Leaders are made”? How do you feel now, and why do you feel that way? (2 Marks) (Min words 200-300)
5. Consider the four dimensions of transformational leadership: idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration. Which of those dimensions would you respond to most favorably? Why? (2 Marks) (Min words 200-300)
Important Note: – Support your submission with course material concepts, principles, and theories from the textbook and at least two scholarly, peer-reviewed journal articles.
Due date for the submission of Assignment:- 3
· Assignment should be posted in the Black Board by end of Week-09.
· The due date for the submission of Assignment- end of Week-13.
Answers
1. Answer-
2. Answer-
3. Answer-
4. Answer-
5. Answer-
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more