![having the best people is essential to the success of any
business.
Clearly, managing diversity makes sense not only because it is
the right way to treat people,
but also because it is good business! With this in mind, it is not
surprising that one consultant
claimed that, “A corporation’s success will increasingly be
determined by its managers’ ability to
naturally tap the full potential of a diverse workforce.”38 And,
as a recruiter for an executive
search firm emphasized, “There is a strong business case [for
diversity]. A diverse workplace
isn’t a luxury, it’s a necessity.”39
Diversity Management: What Are Companies Doing?
Considering the practical value of diversity management, you
probably won’t be surprised that
efforts to manage diversity are popular in today’s organizations.
This is evidenced in a survey
revealing that the number of companies with diversity
management policies in place has been
growing rapidly, with 75 percent already having them and 14
percent planning to add them soon.40
What exactly are these companies doing to promote diversity?
We now identify four such tactics.
TABLE 6.2 Affirmative Action Versus Diversity Management
Both affirmative action and diversity management are designed
to promote positive attitudes and to reduce discrimination
toward women and members of minority groups. As outlined
here, however, their rationales and approaches differ with
respect to several key dimensions.](https://image.slidesharecdn.com/behaviorinorganizationsglobaleditionthispag-230108045036-6519c1ab/85/Behavior-inOrganizationsGlobal-EditionThis-pag-docx-684-320.jpg)
![course) will have more meaning to you than an easy goal (e.g.,
getting a good grade in an easy
course) because it enhances your self-efficacy. As a result, you
will work harder to achieve it.
Goal-setting theory has been supported by research conducted
over 40 years, suggesting that
it is a valuable source of insight into how the goal-setting
process works.16 In fact, goal-setting
theory is so highly regarded that it has been ranked as the most
influential of all OB theories by
management scholars.17 One team of scientists even referred to
goal-setting theory as being
“quite easily the single most dominant theory in the field [of
organizational behavior].”18 Let’s
now examine what this theory suggests about the most effective
way to set goals.
Guidelines for Setting Effective Performance Goals
Because researchers have been involved actively in studying the
goal-setting process for many
years, it is possible to summarize their findings in the form of
principles. These may be taken as
practical suggestions for managers to consider when attempting
to enhance motivation.
ASSIGN SPECIFIC GOALS. Probably the best-established
finding of research on goal setting is that
people perform at higher levels when asked to meet a specific
high-performance goal than when
simply asked to “do your best,” or when no goal at all is
assigned. Generally, people find specific
goals quite challenging and are motivated to meet them—not
only to fulfill others’ expectations
but also to convince themselves that they have performed well.](https://image.slidesharecdn.com/behaviorinorganizationsglobaleditionthispag-230108045036-6519c1ab/85/Behavior-inOrganizationsGlobal-EditionThis-pag-docx-784-320.jpg)
Behavior inOrganizationsGlobal EditionThis pag.docx
- 1. Behavior in Organizations Global Edition This page intentionally left blank Jerald Greenberg E D I T I O N 10 Behavior in Organizations Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Global Edition Pearson Education Limited
- 2. Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk © Pearson Education Limited 2011 The right of Jerald Greenberg to be identified as author of this work has been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. Authorised adaptation from the United States edition, entitled Behavior in Organizations, 10th Edition, ISBN 978-0-13-609019-9 by Jerald Greenberg, published by Pearson Education, publishing as Prentice Hall © 2011. British Library of Congress Cataloging-in-Publication Data A catalogue record for this book is available from the British Library All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby
- 3. Street, London EC1N 8TS. All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners. ISBN: 978-1-4082-6430-0 Typeset in 10/12 Times by Integra Software Services Printed and bound by Quebecor WorldColor in The United States of America 10 9 8 7 6 5 4 3 2 1 14 13 12 11 10 The publisher's policy is to use paper manufactured from sustainable forests. Editorial Director: Sally Yagan Editor-in-Chief: Eric Svendsen Acquisitions Editor: Jennifer M. Collins Senior Acquisitions Editor, International: Steven Jackson Editorial Project Manager: Susan Abraham Director of Marketing: Patrice Lumumba Jones Senior Marketing Manager: Nikki Ayana Jones Marketing Manager, International: Dean Erasmus Senior Marketing Assistant: Ian Gold Senior Managing Editor: Judy Leale Production Project Manager: Kelly Warsak Senior Operations Supervisor: Arnold Vila Operations Specialist: Ilene Kahn Senior Art Director: Janet Slowik
- 4. Art Directors: Steve Frim and Janet Slowik Interior Design: Wee Design Group Cover Design: Jodi Notowitz Manager, Visual Research: Beth Brenzel Photo Researcher: Sheila Norman Manager, Rights and Permissions: Hessa Albader Permissions Coordinator: Suzanne DeWorken Manager, Cover Visual Research & Permissions: Karen Sanatar Cover Art: © Corbis Media Project Manager: Lisa Rinaldi Media Editor: Denise Vaughn Full-Service Project Management: Sharon Anderson/ BookMasters, Inc. Composition: Integra Software Services Printer/Binder: Quebecor World Color/Versailles Cover Printer: Lehigh-Phoenix Color/Hagerstown To Carolyn, For showing me what people mean when they say, “I couldn’t have done it without you.” J.G. This page intentionally left blank Brief Contents Preface 23
- 5. PART 1 Introduction to Organizational Behavior 31 Chapter 1 The Field of Organizational Behavior 31 Chapter 2 Organizational Justice, Ethics, and Corporate Social Responsibility 65 PART 2 Basic Human Processes 101 Chapter 3 Perception and Learning: Understanding and Adapting to the Work Environment 101 Chapter 4 Individual Differences: Personality, Skills, and Abilities 139 Chapter 5 Coping with Organizational Life: Emotions and Stress 173 PART 3 The Individual in the Organization 206 Chapter 6 Work-Related Attitudes: Prejudice, Job Satisfaction, and Organizational Commitment 206 Chapter 7 Motivation in Organizations 242 PART 4 Group Dynamics 279 Chapter 8 Group Dynamics and Work Teams 279 Chapter 9 Communication in Organizations 320 Chapter 10 Decision Making in Organizations 362 Chapter 11 Interpersonal Behavior at Work: Conflict, Cooperation, Trust, and Deviance 404 PART 5 Influencing Others 443 Chapter 12 Power: Its Uses and Abuses in Organizations 443 Chapter 13 Leadership in Organizations 475
- 6. PART 6 Organizational Processes 509 Chapter 14 Organizational Culture, Creativity, and Innovation 509 Chapter 15 Organizational Structure and Design 546 Chapter 16 Managing Organizational Change: Strategic Planning and Organizational Development 582 APPENDIXES Appendix 1 Learning About Behavior in Organizations: Theory and Research 618 Appendix 2 Understanding and Managing Your Career 629 Endnotes 643 Glossary 685 Company Index 704 Name Index 707 Subject Index 710 7 This page intentionally left blank Contents Preface 23 PART 1 Introduction to Organizational Behavior 31
- 7. Chapter 1 The Field of Organizational Behavior 31 � PREVIEW CASE The Talented Chief of Taleo 32 Organizational Behavior: Its Basic Nature 33 What Is the Field of Organizational Behavior All About? 33 Why Is It Important to Know About OB? 36 What Are the Field’s Fundamental Assumptions? 37 OB Recognizes the Dynamic Nature of Organizations 37 OB Assumes There Is No “One Best” Approach 38 OB Then and Now: A Capsule History 39 The Early Days: Scientific Management and the Hawthorne Studies 39 Classical Organizational Theory 40 Late Twentieth Century: Organizational Behavior as a Social Science 41 OB in Today’s Infotech Age 42 OB Responds to the Rise of Globalization and Diversity 43 International Business and the Global Economy 43 The Shifting Demographics of the Workforce: Trends Toward Diversity 46 OB Responds to Advances in Technology 49 Leaner Organizations: Downsizing and Outsourcing 50 The Virtual Organization 51 Telecommuting: Going to Work Without Leaving Home 51 OB Is Responsive to People’s Changing Expectations 53 Employees and Employers Desire Engagement 53 In Search of Flexibility: Responding to Needs of Employees 54 Summary and Review of Learning Objectives 60 • Points to Ponder 61 • Experiencing OB 61 • Practicing OB 64
- 8. � CASE IN POINT Floyd’s Barbershop: A Cut Above the Rest 64 Special Sections � TODAY’S DIVERSE AND GLOBAL ORGANIZATIONS What’s in a Name? It Depends Where You Live 46 � OB IN PRACTICE Telecommuting as a Business Continuity Strategy 53 � THE ETHICS ANGLE Are I-Deals Unfair? 59 Chapter 2 Organizational Justice, Ethics, and Corporate Social Responsibility 65 � PREVIEW CASE A Huge Day’s Pay for a Seriously Bad Day’s Work 66 Organizational Justice: Fairness Matters 67 Two Important Points to Keep in Mind 67 Forms of Organizational Justice and Their Effects 68 A Neurological Basis for Responses to Injustice 71 Strategies for Promoting Organizational Justice 72 Pay Workers What They Deserve 72 Offer Workers a Voice 73 Explain Decisions Thoroughly and in a Manner Demonstrating Dignity and Respect 74 Train Workers to Be Fair 74 9
- 9. Ethical Behavior in Organizations: Its Fundamental Nature 77 What Do We Mean by Ethics? 78 Ethics and the Law 80 Why Do Some People Behave Unethically, at Least Sometimes—and What Can Be Done About It? 81 Individual Differences in Cognitive Moral Development 82 Situational Determinants of Unethical Behavior 83 Using Corporate Ethics Programs to Promote Ethical Behavior 86 Components of Corporate Ethics Programs 86 The Effectiveness of Corporate Ethics Programs 88 Ethics in the International Arena 88 Ethical Relativism and Ethical Imperialism: Two Extreme Positions 88 Three Guiding Principles of Global Ethics 89 Beyond Ethics: Corporate Social Responsibility 90 What Is Corporate Social Responsibility? 91 Forms of Socially Responsible Behavior 92 Profitability and Social Responsibility: The Virtuous Circle 93 Summary and Review of Learning Objectives 95 • Points to Ponder 96 • Experiencing OB 97 • Practicing OB 99 � CASE IN POINT HP = Hidden Pretexting? What Did in Dunn? 99 Special Sections � THE ETHICS ANGLE Making A Business Case for Ethical Behavior 79 � OB IN PRACTICE Using Ethics Audits to Monitor the Triple
- 10. Bottom Line 87 � TODAY’S DIVERSE AND GLOBAL ORGANIZATIONS Nike Turns the Tables on Critics of Employee Conditions 94 � VIDEO CASES Global Business at KPMG 100 Social Responsibility at Terra Cycle 100 Work/Life Balance 100 PART 2 Basic Human Processes 101 Chapter 3 Perception and Learning: Understanding and Adapting to the Work Environment 101 � PREVIEW CASE In Tune for Success 102 Social Perception and Social Identity: Understanding Others and Ourselves 103 Social Perception: What Are Others Like? 103 Social Identity: Who Am I? 103 The Attribution Process: Judging the Causes of Others’ Behavior 105 Making Correspondent Inferences: Using Acts to Judge Dispositions 106 Causal Attribution of Responsibility: Answering the Question “Why?” 107 Perceptual Biases: Systematic Errors in Perceiving Others 108 The Fundamental Attribution Error 109 The Halo Effect: Keeping Perceptions Consistent 109 The Similar-to-Me Effect: “If You’re Like Me, You Must Be Pretty Good” 110
- 11. Selective Perception: Focusing on Some Things While Ignoring Others 111 First-Impression Error: Confirming One’s Expectations 111 Self-Fulfilling Prophecies: The Pygmalion Effect and the Golem Effect 111 Stereotyping: Fitting People into Categories 114 Why Do We Rely on Stereotypes? 114 The Dangers of Using Stereotypes in Organizations 114 Perceiving Others: Organizational Applications 116 Employment Interviews: Managing Impressions to Prospective Employers 116 Performance Appraisal: Formal Judgments About Job Performance 119 10 CONTENTS Learning: Adapting to the World Around Us 120 Operant Conditioning: Learning Through Rewards and Punishments 121 Observational Learning: Learning by Imitating Others 123 Training: Learning and Developing Job Skills 124 Varieties of Training Methods 124 Principles of Learning: Keys to Effective Training 127 Organizational Practices Using Reward and Punishment 130 Organizational Behavior Management 130 Discipline: Eliminating Undesirable Organizational Behaviors 131 Summary and Review of Learning Objectives 133 • Points to Ponder 135 •
- 12. Experiencing OB 135 • Practicing OB 137 � CASE IN POINT Smiling Might Not Be Such a Safe Way to Treat Safeway Customers 138 Special Sections � OB IN PRACTICE A Creative Approach to Avoiding Stereotyping 117 � TODAY’S DIVERSE AND GLOBAL ORGANIZATIONS Performance Evaluations in the United States and Japan 120 � THE ETHICS ANGLE Principles for Using Discipline Fairly—and Effectively, Too 132 Chapter 4 Individual Differences: Personality, Skills, and Abilities 139 � PREVIEW CASE Kenneth Chenault: An American Success at American Express 140 Personality: Its Basic Nature 141 What Is Personality? 141 Personality and Situations: The Interactionist Approach 142 How Is Personality Measured? 144 Do Organizations Have Personalities Too? 147 Major Work-Related Aspects of Personality: The “Big Five,” Positive Versus Negative Affectivity, and Core Self-Evaluations 148 The Big Five Dimensions of Personality: Our Most Fundamental Traits 148
- 13. Positive and Negative Affectivity: Tendencies Toward Feeling Good or Bad 151 Core Self-Evaluations: How Do We Think of Ourselves? 152 Additional Work-Related Aspects of Personality 154 Machiavellianism: Using Others to Get Ahead 154 Achievement Motivation: The Quest for Excellence 155 Morning Persons and Evening Persons 158 Abilities and Skills: Having What It Takes to Succeed 160 Intelligence: Three Major Types 160 Physical Abilities: Capacity to Do the Job 164 Social Skills: Interacting Effectively with Others 165 Summary and Review of Learning Objectives 167 • Points to Ponder 168 • Experiencing OB 168 • Practicing OB 171 � CASE IN POINT Howard Schultz: The Personality Behind Starbucks 171 Special Sections � OB IN PRACTICE Boosting Employees’ Self-Efficacy 153 � TODAY’S DIVERSE AND GLOBAL ORGANIZATIONS Achievement Motivation and Economic Growth Around the World 159 � THE ETHICS ANGLE Are IQ Tests Inherently Unethical? 152 Chapter 5 Coping with Organizational Life: Emotions and Stress 173 � PREVIEW CASE How to Beat Call-Center Stress 174 Understanding Emotions and Mood 175 Properties of Emotions 175
- 14. Types of Emotions 175 The Basic Nature of Mood 177 CONTENTS 11 The Role of Emotions and Mood in Organizations 179 Are Happier People More Successful on Their Jobs? 179 Why Are Happier Workers More Successful? 179 Affective Events Theory 181 Managing Emotions in Organizations 183 Emotional Dissonance 183 Controlling Anger (Before It Controls You) 184 The Basic Nature of Stress 185 Stressors in Organizations 186 The Cognitive Appraisal Process 187 Bodily Responses to Stressors 188 Major Causes of Stress in the Workplace 190 Occupational Demands 190 Conflict Between Work and Nonwork 190 Sexual Harassment: A Pervasive Problem in Work Settings 191 Role Ambiguity: Stress from Uncertainty 192 Overload and Underload 193 Responsibility for Others: A Heavy Burden 193 Lack of Social Support: The Costs of Isolation 193 Adverse Effects of Organizational Stress 194 Lowered Task Performance—But Only Sometimes 194 Desk Rage 195 Stress and Health: The Silent Killer 195
- 15. Reducing Stress: What Can Be Done? 197 Employee Assistance Programs and Stress Management Programs 197 Wellness Programs 197 Managing Your Own Stress 198 Summary and Review of Learning Objectives 200 • Points to Ponder 201 • Experiencing OB 202 • Practicing OB 203 � CASE IN POINT A Basketball Court Judge Faces a Federal Court Judge 203 Special Sections � OB IN PRACTICE Managing Anger in the Workplace 185 � TODAY’S DIVERSE AND GLOBAL ORGANIZATIONS Do Women and Men Respond Differently to Stress? 196 � THE ETHICS ANGLE Companies and Employee Health: An Invitation for Big Brother? 199 � VIDEO CASES Training and Development 204 Managing Stress 204 PART 3 The Individual in the Organization 206 Chapter 6 Work-Related Attitudes: Prejudice, Job Satisfaction, and Organizational Commitment 206 � PREVIEW CASE A Second Chance 207 Attitudes: What are They? 207 Basic Definitions 208
- 16. Three Essential Components of Attitudes 208 Prejudice and Discrimination: Negative Attitudes and Behavior Toward Others 209 The Challenges of Organizational Demography 209 Anatomy of Prejudice: Some Basic Distinctions 210 Everyone Can Be a Victim of Prejudice and Discrimination! 211 12 CONTENTS Strategies for Overcoming Workplace Prejudice: Managing a Diverse Workforce 215 Affirmative Action 215 Diversity Management: Orientation and Rationale 216 Diversity Management: What are Companies Doing? 217 Job Satisfaction: Its Nature and Major Theories 220 The Nature of Job Satisfaction: Fundamental Issues 220 The Dispositional Model of Job Satisfaction 222 Value Theory of Job Satisfaction 223 Social Information Processing Model 223 Consequences of Job Dissatisfaction—and Ways to Reduce Them 224 Employee Withdrawal: Voluntary Turnover and Absenteeism 224 Job Performance: Are Dissatisfied Employees Poor Performers? 228 Job Satisfaction and Injuries: Are Happy Workers Safe Workers? 229 Job Satisfaction and Life Satisfaction 230
- 17. Organizational Commitment: Attitudes Toward Companies 231 Varieties of Organizational Commitment 232 Why Strive for an Affectively Committed Workforce? 233 How to Promote Affective Commitment 236 Summary and Review of Learning Objectives 237 • Points to Ponder 238 • Experiencing OB 238 • Practicing OB 240 � CASE IN POINT Domino’s Pizza Takes a Bite Out of Turnover 240 Special Sections � OB IN PRACTICE How the “Good Hands People” Use Diversity as a Competitive Weapon 220 � THE ETHICS ANGLE Promoting Job Satisfaction by Treating People Ethically 231 � TODAY’S DIVERSE AND GLOBAL ORGANIZATIONS Does Absenteeism Mean the Same Thing in Canada and China? 235 Chapter 7 Motivation in Organizations 242 � PREVIEW CASE PAC Engineering: Employee Motivation, Different Priorities for Different Territories 243 Motivation in Organizations: Its Basic Nature 244 Components of Motivation 244 Three Key Points About Motivation 245
- 18. Motivating by Enhancing Fit with an Organization 246 Motivational Traits and Skills 247 Organizational Factors: Enhancing Motivational Fit 247 Motivating by Setting Goals 248 Goal-Setting Theory 248 Guidelines for Setting Effective Performance Goals 250 Motivating by Being Equitable 254 Equity Theory: Balancing Outcomes and Inputs 254 Managerial Implications of Equity Theory 258 Motivating by Altering Expectations 260 Basic Elements of Expectancy Theory 260 Putting Expectancy Theory to Work: Key Managerial Implications 263 Motivating by Structuring Jobs to Make Them Interesting 266 Job Enlargement and Job Enrichment 266 The Job Characteristics Model 268 Designing Jobs That Motivate: Managerial Guidelines 270 Summary and Review of Learning Objectives 273 • Points to Ponder 274 • Experiencing OB 274 • Practicing OB 276 � CASE IN POINT Google: Searching for a Better Way to Work 276 CONTENTS 13 Special Sections � TODAY’S DIVERSE AND GLOBAL ORGANIZATIONS Inequity in Housework:
- 19. Comparing Married Women and Men 258 � THE ETHICS ANGLE Should Doctors Be Paid for Their Performance? 265 � OB IN PRACTICE Autonomy Is Not Music to the Maestro’s Ears 269 � VIDEO CASES Diversity at KPMG 277 Motivating Employees at KPMG 278 PART 4 Group Dynamics 279 Chapter 8 Group Dynamics and Work Teams 279 � PREVIEW CASE Making a “Better Place” One Electric Vehicle at a Time 280 Groups at Work: Their Basic Nature 281 What Is a Group? 281 What Types of Groups Exist? 283 Why Do People Join Groups? 284 The Formation of Groups 285 The Five-Stage Model of Group Formation 285 The Punctuated-Equilibrium Model 286 The Structural Dynamics of Work Groups 287 Roles: The Hats We Wear 287 Norms: A Group’s Unspoken Rules 289 Status: The Prestige of Group Membership 290 Cohesiveness: Getting the Team Spirit 291 Individual Performance in Groups 292
- 20. Social Facilitation: Working in the Presence of Others 292 Social Loafing: “Free Riding” When Working with Others 294 Teams: Special Kinds of Groups 297 Defining Teams and Distinguishing Them from Groups 297 Types of Teams 299 Creating and Developing Teams: A Four-Stage Process 303 Effective Team Performance 304 How Successful Are Teams? 305 Potential Obstacles to Success: Why Some Teams Fail 305 Developing Successful Teams 306 Compensate Team Performance 306 Recognize the Role of Team Leaders 308 Communicate the Urgency of the Team’s Mission 309 Train Members in Team Skills 309 Promote Cooperation Within and Between Teams 312 Select Team Members Based on Their Skills or Potential Skills 313 A Cautionary Note: Developing Successful Teams Requires Patience 314 Summary and Review of Learning Objectives 315 • Points to Ponder 316 • Experiencing OB 316 • Practicing OB 318 � CASE IN POINT Inside the Peloton: Social Dynamics of the Tour de France 318 Special Sections � TODAY’S DIVERSE AND GLOBAL ORGANIZATIONS Is Social Loafing a Universal Phenomenon? 296 � THE ETHICS ANGLE Fairness in Teams: What Are Members
- 21. Looking For? 308 � OB IN PRACTICE Making Cross-National Team Successful 313 14 CONTENTS Chapter 9 Communication in Organizations 320 � PREVIEW CASE Reducing Interruptions High-Tech Style at Microsoft and IBM 321 Communication: Its Basic Nature 323 Defining Communication and Describing the Process 323 Purposes and Levels of Organizational Communication 324 Verbal and Nonverbal Communication: Messages With and Without Words 326 Verbal Media 327 Matching the Medium to the Message 328 Nonverbal Communication 330 The Role of Technology: Computer-Mediated Communication 332 Synchronous Communication: Video-Mediated Communication 333 Asynchronous Communication: E-Mail and Instant Messaging 334 Does High-Tech Communication Dehumanize the Workplace? 335 Formal Communication in Organizations 337 Organizational Structure Influences Communication 337 Downward Communication: From Supervisor to Subordinate
- 22. 338 Upward Communication: From Subordinate to Superior 339 Lateral Communication: Coordinating Messages Among Peers 340 Communicating Inside Versus Outside the Organization: Strategic Communication 341 Informal Communication Networks: Behind the Organizational Chart 342 Organizations’ Hidden Pathways 342 The Nature of the Grapevine 343 Rumors and How to Combat Them 344 Individual Differences in Communication 346 Sex Differences in Communication: Do Women and Men Communicate Differently? 346 Cross-Cultural Differences in Communication 347 Improving Your Communication Skills 349 Use Jargon Sparingly 349 Be Consistent in What You Say and Do 350 Become an Active, Attentive Listener 351 Gauge the Flow of Information: Avoiding Overload 353 Give and Receive Feedback: Opening Channels of Communication 354 Be a Supportive Communicator: Enhancing Relationships 355 Summary and Review of Learning Objectives 356 • Points to Ponder 358 • Experiencing OB 358 • Practicing OB 360 � CASE IN POINT ARM's Virtual Success Story 361 Special Sections � OB IN PRACTICE The Downside of Communicating Layoffs Via E-Mail 331
- 23. � THE ETHICS ANGLE Should Employers Be Monitoring Employees’ Computer Activities? 336 � TODAY’S DIVERSE AND GLOBAL ORGANIZATIONS Promoting Cross-Cultural Communication 348 Chapter 10 Decision Making in Organizations 362 � PREVIEW CASE How Should We Handle the Tiger Affair? 363 A General, Analytical Model of the Decision-Making Process 364 Decision Formulation 364 Decision Consideration 366 Decision Implementation 366 The Broad Spectrum of Organizational Decisions 367 Programmed Versus Nonprogrammed Decisions 367 Certain Versus Uncertain Decisions 368 Top-Down Versus Empowered Decisions 371 CONTENTS 15 Factors Affecting Decisions in Organizations 372 Individual Differences in Decision Making 372 Group Influences: A Matter of Trade-Offs 375 Organizational Influences on Decision Making 377 How Are Individual Decisions Made? 379 The Rational-Economic Model: In Search of the Ideal Decision 379
- 24. The Administrative Model: Acknowledging the Limits of Human Rationality 379 Image Theory: An Intuitive Approach to Decision Making 380 The Imperfect Nature of Individual Decisions 382 Framing Effects 383 Reliance on Heuristics 385 The Inherently Biased Nature of Individual Decisions 386 Group Decisions: Do Too Many Cooks Spoil the Broth? 391 When Are Groups Superior to Individuals? 391 When Are Individuals Superior to Groups? 392 Techniques For Improving the Effectiveness of Decisions 393 Training Individuals to Improve Group Performance 393 Techniques for Enhancing Group Decisions 394 Group Decision Support Systems 397 Summary and Review of Learning Objectives 398 • Points to Ponder 400 • Experiencing OB 400 • Practicing OB 402 � CASE IN POINT Coca-Cola: Deciding on the Look 402 Special Sections � TODAY’S DIVERSE AND GLOBAL ORGANIZATIONS How Does National Culture Affect the Decision-Making Process? 367 � OB IN PRACTICE Strategies for Avoiding Groupthink 377 � THE ETHICS ANGLE Why Do People Make Unethical Decisions? Bad Apples, Bad Cases, and Bad Barrels 381 Chapter 11 Interpersonal Behavior at Work: Conflict,
- 25. Cooperation, Trust, and Deviance 404 � PREVIEW CASE NASCAR: The Etiquette of Drafting 405 Psychological Contracts and Trust: Building Blocks of Working Relationships 406 Psychological Contracts: Our Expectations of Others 406 Trust in Working Relationships 409 Organizational Citizenship Behavior: Going Above and Beyond Formal Job Requirements 413 Forms of OCB 413 Why Does OCB Occur? 414 Does OCB Really Matter? 414 Cooperation: Providing Mutual Assistance 416 Cooperation Between Individuals 416 Cooperation Between Organizations: Interorganizational Alliances 419 Conflict: The Inevitable Result of Incompatible Interests 421 Types of Conflict 421 Causes of Conflict 421 Consequences of Conflict 423 Managing Conflict Through Negotiation 423 Alternative Dispute Resolution 425 Deviant Organizational Behavior 426 Constructive and Destructive Workplace Deviance 427 Whistle-Blowing: Constructive Workplace Deviance 428 Cyberloafing: Deviant Behavior Goes High-Tech 430 Workplace Aggression and Violence 431
- 26. 16 CONTENTS Abusive Supervision: Workplace Bullying 434 Employee Theft 435 Summary and Review of Learning Objectives 437 • Points to Ponder 438 • Experiencing OB 438 • Practicing OB 440 � CASE IN POINT Southwest Airlines: Profits from People 440 Special Sections � TODAY’S DIVERSE AND GLOBAL ORGANIZATIONS Psychological Contracts in China and the United States: Are They the Same 409 � OB IN PRACTICE How to Promote OCB 416 � THE ETHICS ANGLE The Benefits of Promoting Conflict 424 � VIDEO CASES Effective Versus Ineffective Communication 441 Groups and Teams at Kluster 441 Technology and the Tools of Communication 441 PART 5 Influencing Others 443 Chapter 12 Power: Its Uses and Abuses in Organizations 443 � PREVIEW CASE Abuse of Power or “An Indiscriminate Jerk”? 444 Influence: A Basic Organizational Process 445 Tactics for Exerting Influence 445 Can Managers Learn to Use Influence More Effectively? 446
- 27. Individual Power: Sources and Uses 448 Position Power: Influence That Comes with the Office 448 Personal Power: Influence That Comes from the Individual 449 How Is Individual Power Used? 450 When Can Being Powerful Be a Liability? 452 Empowerment: Sharing Power with Employees 453 Do Employees Like Being Empowered? 454 Empowerment Climate 455 The Power of Organizational Groups 457 The Resource-Dependency Model: Controlling Critical Resources 457 The Strategic Contingencies Model: Power Through Dependence 459 Sexual Harassment: A Serious Abuse of Power 461 Nature and Scope of Sexual Harassment 461 Managing Sexual Harassment in the Workplace: What to Do 462 Organizational Politics: Selfish Uses of Power 465 Forms of Political Behavior 466 Why Does Political Behavior Occur? 467 The Impact of Organizational Politics 469 Summary and Review of Learning Objectives 470 • Points to Ponder 471 • Experiencing OB 471 • Practicing OB 473 � CASE IN POINT The Smith Brothers’ Low-Key Approach to Organizational Power 473 Special Sections � OB IN PRACTICE Cultivating Your Own Influence Skills 447
- 28. � TODAY’S DIVERSE AND GLOBAL ORGANIZATIONS Comparing Reactions to Empowerment in Four Different Nations 456 � THE ETHICS ANGLE Dispelling Myths about Sexual Harassment 464 Chapter 13 Leadership in Organizations 475 � PREVIEW CASE The Woman Who Saved the Chicken Fajitas 476 The Nature of Leadership 477 Defining Leadership 477 Important Characteristics of Leadership 477 Leaders Versus Managers: A Key Distinction—At Least in Theory 478 CONTENTS 17 The Trait Approach to Leadership: Having the Right Stuff 480 The Great Person Theory 480 Transformational Leaders: Special People Who Make Things Happen 481 Leadership Behavior: What Do Leaders Do? 485 Participative Versus Autocratic Leadership Behaviors 485 Person-Oriented Versus Production-Oriented Leaders 487 Developing Successful Leader Behavior: Grid Training 488 Leaders and Followers 489 The Leader-Member Exchange (LMX) Model: The Importance of Being in the “In-Group” 489 The Challenge of Leading Work Teams 491
- 29. Contingency Theories of Leader Effectiveness 492 LPC Contingency Theory: Matching Leaders and Tasks 493 Situational Leadership Theory: Adjusting Leadership Style to the Situation 495 Path-Goal Theory: Leaders as Guides to Valued Goals 496 Leadership Development: Bringing Out the Leader Within You 498 360-Degree Feedback 499 Networking 499 Executive Coaching 501 Mentoring 501 Job Assignments 502 Action Learning 502 Summary and Review of Learning Objectives 504 • Points to Ponder 505 • Experiencing OB 505 • Practicing OB 507 � CASE IN POINT A New Era for Newark 507 Special Sections � OB IN PRACTICE Coaching Tips from Some of the Best 497 � TODAY’S DIVERSE AND GLOBAL ORGANIZATIONS Guanxi: Social Networking in China 500 � THE ETHICS ANGLE Using Leadership Development Techniques to Promote Authentic Leaders 503 � VIDEO CASES Leadership at Kluster 508 Decision Making at Insomnia Cookies 508
- 30. PART 6 Organizational Processes 509 Chapter 14 Organizational Culture, Creativity, and Innovation 509 � PREVIEW CASE The Global Face of Social Networking 510 Organizational Culture: Its Basic Nature 511 Organizational Culture: A Definition 511 Core Cultural Characteristics 511 Strength of Organizational Culture: Strong and Weak 514 Cultures Within Organizations: One or Many? 514 The Role of Culture in Organizations 514 Forms of Organizational Culture: The Competing Values Framework 515 Creating, Transmitting and Changing Organizational Culture 518 How Is Organizational Culture Created? 518 Tools for Transmitting Culture 519 Why and How Does Organizational Culture Change? 522 Creativity in Individuals and Teams 526 Components of Individual and Team Creativity 526 A Model of the Creative Process 528 18 CONTENTS Promoting Creativity in Organizations 529 Training People to be Creative 529 Developing Creative Work Environments 532 The Process of Innovation 534 Major Forms of Innovation 534
- 31. Targets of Innovation 536 Conditions Required for Innovation to Occur 537 Stages of the Organizational Innovation Process 537 Summary and Review of Learning Objectives 540 • Points to Ponder 542 • Experiencing OB 542 • Practicing OB 544 � CASE IN POINT Amazon.com: Innovation via the “Two-Pizza Team” 544 Special Sections � THE ETHICS ANGLE Building an Ethical Organizational Culture 526 � TODAY’S DIVERSE AND GLOBAL ORGANIZATIONS Where in the World is Entrepreneurial Creativity Promoted? 534 � OB IN PRACTICE How to Inspire Innovation 540 Chapter 15 Organizational Structure and Design 546 � PREVIEW CASE Verizon and McAfee Head for “the Cloud” Together 547 Organizational Structure: The Basic Dimensions of Organizations 548 Hierarchy of Authority: Up and Down the Organizational Ladder 548 Span of Control: Breadth of Responsibility 550 Division of Labor: Carving Up the Work to Be Done 551 Line Versus Staff Positions: Decision Makers Versus Advisers 552 Decentralization: Delegating Power Downward 552
- 32. Departmentalization: Ways of Structuring Organizations 554 Functional Organizations: Departmentalization by Task 554 Product Organizations: Departmentalization by Type of Output 556 Matrix Organizations: Departmentalization by Both Function and Product 557 Organizational Design: Coordinating the Structural Elements of Organizations 559 Classical and Neoclassical Approaches: The Quest for the One Best Design 560 The Contingency Approach: Design According to Environmental Conditions 561 Mintzberg’s Framework: Five Organizational Forms 563 The Vertically Integrated Organization 566 Team-Based Organizations 567 A Strategic Approach to Designing Organizations 568 Strategy 569 Contingency Factors 569 Task Qualities and Coordination Mechanisms 570 Structural or Design Feature 571 Interorganizational Designs: Joining Multiple Organizations 573 Boundaryless Organizations: Eliminating Walls 573 Conglomerates: Diversified “Megacorporations” 574 Strategic Alliances: Joining Forces for Mutual Benefit 574 Summary and Review of Learning Objectives 577 • Points to Ponder 579 • Experiencing OB 579 • Practicing OB 581
- 33. � CASE IN POINT Commercial Metals Company “Steels” the Show 581 CONTENTS 19 Special Sections � THE ETHICS ANGLE How Fair is Centralization? It Depends Who You Ask 555 � OB IN PRACTICE Organizational Design Strategies for the Information Age 572 � TODAY’S DIVERSE AND GLOBAL ORGANIZATIONS The Changing Economic and Regulatory Factors Influencing Organizational Design 577 Chapter 16 Managing Organizational Change: Strategic Planning and Organizational Development 582 � PREVIEW CASE Ghosn Overcomes Cultural Barriers at Nissan 583 The Prevalence of Change in Organizations 584 The Message Is Clear: Change or Disappear! 584 Change Is a Global Phenomenon 585 The Nature of the Change Process 586 Targets: What, Exactly, Is Changed? 586 Magnitude: How Much Is Changed? 588 Forces: Why Does Unplanned Change Occur? 588 Strategic Planning: Deliberate Change 592
- 34. Basic Assumptions About Strategic Planning 592 About What Do Companies Make Strategic Plans? 593 The Strategic Planning Process: Making Change Happen 595 Resistance to Change: Maintaining the Status Quo 598 Individual Barriers to Change 598 Organizational Barriers to Change 599 Readiness for Change: When Will Organizational Change Occur? 600 Factors Affecting Resistance to Change 601 How Can Resistance to Organizational Change Be Overcome? 602 Organizational Development Interventions: Implementing Planned Change 605 Management by Objectives: Clarifying Organizational Goals 605 Survey Feedback: Inducing Change by Sharing Information 607 Appreciative Inquiry 608 Action Labs 609 Quality of Work Life Programs: Humanizing the Workplace 609 Critical Questions About Organizational Development 610 Summary and Review of Learning Objectives 613 • Points to Ponder 614 • Experiencing OB 614 • Practicing OB 615 � CASE IN POINT The Swiss Post: The “Yellow Giant” Moves 615 Special Sections � TODAY’S DIVERSE AND GLOBAL ORGANIZATIONS Strategic Values: More American Than Universal 598 � OB IN PRACTICE Making Changes Stick: Tips from Three
- 35. Established Organizations 606 � THE ETHICS ANGLE Is Organizational Development Inherently Unethical? 611 � VIDEO CASES Change, Creativity, and Innovation at Terra Cycle 616 Organizational Culture at Terra Cycle 617 Inside Student Advantage 617 Appendixes Appendix 1 Learning About Behavior in Organizations: Theory and Research 618 Isn't It All Just Common Sense? 618 Theory: an Indispensable Guide to Organizational Research 619 Survey Research: The Correlational Method 621 Experimental Research: The Logic of Cause and Effect 624 20 CONTENTS Appendix 2 Understanding and Managing Your Career 629 The Nature of Careers 629 Getting Started: Making Career Choices 632 Managing Established Careers 637 Endnotes 643 Glossary 685 Company Index 704 Name Index 707 Subject Index 710 CONTENTS 21
- 36. This page intentionally left blank Preface Welcome to Behavior in Organizations, 10th Edition. As with the tenth iteration of anything, it’s a milestone. And, by nature, milestones encourage us to look at where we’ve been. In this case, I see a book that is entering its fourth decade of publication. This edition hardly could be more different from the first edition—published in the early 1980s—in scope, style, and coverage. But, as the epigram goes, plus ça change, plus c’est la même chose (“the more things change, the more they remain the same”). For Behavior in Organizations, what remained the same is fundamental—the book’s commit- ment to reflecting the nature of organizational behavior (OB). No matter where the field has been, Behavior in Organizations was there to capture its essence. This commitment remains as strong as ever in the current edition, but accomplishing this objective also has been more challenging. For this I can thank the unprecedented speed with which contemporary organizations have been changing, making them moving targets for scientists intent on studying the behavior of people within them. And as they work to get a grip on the (sometime seismically) shifting terrain of the nature of organizations, so too have I endeavored to characterize what OB scientists and
- 37. practitioners do. This challenge is one I approach with alacrity because the field’s changes have kept it exciting and vibrant. In particular, they have reflected a new focus on issues that are not only scientifically important but that also have considerable practical value. It’s science that’s relevant to real-world issues, and this makes it incredibly valuable. OB has positioned itself as the field that provides insight into the dynamic relationships between individuals, groups/teams, and entire organizations and, of course, their interrelationships with the economic, cultural, and social environment. We trade in research and theory, but these tools do not suffer from ivory tower elitism. Instead, the field of OB is focused on applying its highly developed analytical tools to understanding something very real and dynamic—the behavior of people in the workplace. Over the years, I’ve seen shifts in directions, but OB is now facing the issue of relevance instead of skirting it. Accordingly, this book now provides more insight into what actually is occurring in the workplace. In other words, as the field keeps apace with the workplace, I keep my fingers on its pulse. And those fingers are connected directly to the keyboard from which this book has emerged. I became well aware of these changes as I researched this edition. Some of our concepts (e.g., jus- tice, trust, diversity) have received more attention than in years past, earning them increased emphasis in this edition. On the other hand, some once-dominant conceptualizations (e.g., Maslow’s need hierar- chy theory, Herzberg’s two-factor theory) have faded from our radar screens, leading me to remove
- 38. them from the book. These topics are interesting and have had impact, but they are more yesterday than today. As such, they have limited value in a book I claim to be a snapshot of OB as we currently find it. Perhaps what surprised me most was the huge number of changes in the businesses highlighted as examples in the previous edition. Many of these organizations no longer exist. Even more have been transformed in ways that now make them inappropriate as examples of the practice or phe- nomena I once associated with them. Inevitably, some of the companies described in this book will have altered their ways of operation still further by the time you read this, making some of my examples imperfect. Unfortunate as this is, it simply is a by product of studying a dynamic field. Major Objective: To Spotlight Organizational Behavior People enjoy learning about behavior in organizations. It gives us unique insight into everyday processes and phenomena we often take for granted, knowledge that helps us understand a key part of the world in which we live. For a book such as this, the implication is that the material must be accessible and relevant to readers. I have been very deliberate in my effort to incorporate these qualities into this book. Accessibility to Readers In preparing this edition, I have adopted a very simple assumption: Unless readers find the mate- rial accessible and engaging, they will fail to get anything out of it—if they even bother to read it at all. With this in mind, I have done several things that may be
- 39. seen throughout this book. 23 � As always, I have gone out of my way to use a friendly and approachable writing style, speak- ing directly to readers in straightforward prose. At the same time, I have done my best to refrain from condescension (by speaking down to readers) and elitism (by going over their heads). � By carefully selecting material to which students can relate— such as accounts of organiza- tional practices in companies with which they may be familiar— they are likely to find the material engaging. In this edition, for example, organizations such as Facebook and Apple, and cross-functional teams such as the Dave Matthews Band, are mentioned. � Key points are easy to find because of the way the book is designed and by features such as key terms appearing in margins and a “Summary and Review of Learning Objectives” appearing at the end of each chapter. � Graphics are used to enhance explanations of material for visually oriented learners. For exam- ple, the “talking graphics” I’ve used for many editions help readers take away the key find- ings of research appearing in graphs. Using arrows to point directly to the important aspects of research findings is the next best thing to having an instructor present to point them out.
- 40. These are among the several key features that help bring the material to life for students by making a fascinating topic readily understandable. Focusing on Relevance The field of OB is not about curiosity for its own sake. Rather, it’s about finding real, scientifically based answers to practical questions. Thus, relevance is vital. Theories and research are impor- tant, many students believe, so long as they offer insight into appropriate action—that is, what to do and why. In preparing this book, my mission was to spotlight this relevance in a form that would enlighten the target audience—college students at all levels who desire to learn about the complexities of human behavior in organizations. I do this in three ways. First, in each chapter I provide concrete information on putting organizational behavior to prac- tical use in special sections titled “OB in Practice.” This feature describes current practices being used in companies or principles that readily lend themselves to application. Examples include: � How the “Good Hands People” Use Diversity as a Competitive Weapon (Chapter 6) � Organizational Design Strategies for the Information Age (Chapter 15) � Making Changes Stick: Tips from Three Established Organizations (Chapter 16) A second way in which I attempt to make the material relevant is by highlighting two significant realities of contemporary organizations—shifts in demographic
- 41. diversity and rapid globalization of the business environment. I do this in sections titled, “Today’s Diverse and Global Organizations.” These sections highlight ways in which differences between individuals with respect to their race, gender, sex- ual preference, or nationality impact various OB phenomena. Some examples include the following: � Nike Turns the Tables on Critics of Employee Conditions (Chapter 2) � Do Men and Women Respond Differently to Stress? (Chapter 5) � Inequity in Housework: Comparing Married Women and Men (Chapter 7) � How Does National Culture Affect the Decision-Making Process? (Chapter 10) � The Changing Economic and Regulatory Factors Influencing Organizational Design (Chapter 15) The third way in which I focus on relevance is by highlighting a topic that has been occupy- ing the popular press in recent years—ethics (or lack thereof). As ethics scandals proliferate, it is especially important to examine insight offered by the field of OB. I do this in the present book in a special feature called “The Ethics Angle.” Several such sections are as follows: � Making a Business Case for Ethical Behavior (Chapter 2) � Should Doctors Be Paid for Their Performance? (Chapter 7) � Why Do People Make Unethical Decisions? Bad Apples, Bad Cases, and Bad Barrels (Chapter 10) A Careful Balancing Act
- 42. Throughout this book I found it necessary to balance coverage in two ways: (a) in striking a balance between discussions of basic science and practical application and (b) in presenting material designed to impart knowledge intended to develop skills. 24 PREFACE Balancing Basic Science and Practical Application Because the field of OB is a blend of research, theory, and practical application, so too, quite deliberately, is this book. Indeed, I have taken extensive steps to ensure that it is the best of these seemingly disparate worlds. Consider just a few examples: � In Chapter 3, I cover theories of learning and how these are involved in such organizational practices as training, organizational behavior management, and discipline. � In Chapter 6, specific ways in which the various theories of motivation can be put into practice are discussed. � In Chapter 10, it is not only various scientific studies of decision making that are identified, but also various practices that can be, and are being, followed to enhance the effectiveness of group decisions. Beyond simply indicating how various research findings and theories may be applied, I also focus on application by adopting a hands-on approach. This is
- 43. done by offering concrete, “how to” suggestions for readers. These are not only useful by themselves, but because they are derived from OB research and theory, they also provide clear illustrations of the field’s practical utility. By weaving such recommendations throughout this book, OB is brought to life for readers at every juncture. Just a few examples include how to: � Properly use communication media (Chapter 9) � Brainstorm effectively (Chapter 10) � Promote trust in organizations (Chapter 11) By focusing on how findings from OB research may be applied in organizations, I am taking what amounts to an evidence-based approach. In recent years, so-called “evidence-based” movements have emerged in such applied fields as medicine, nursing, education, and manage- ment. The idea underlying these approaches is that guidelines for practice should be based on research findings. Although this idea may be novel to some fields, using research to inform practice is inherent in the nature of OB. For this reason, the practice of applying research and theory to organizational issues (evidence-based practice) and relying on knowledge of practical problems as input into research and theory (practice-based evidence) is a hallmark of the field of OB—and for this reason, it is emphasized in this book. Balancing Knowledge and Skills Educators tell us that there is a fundamental distinction between teaching people about something—providing knowledge—and showing them how to do it—developing their skills. In
- 44. the field of OB, this distinction becomes blurred. After all, to appreciate fully how to do something, you have to have the requisite knowledge. For this reason, I pay attention to both knowledge and skills in this book. Consider the following illustrations: � Chapter 5 investigates ways in which stress operates in the workplace. Beyond this, I also present an exercise to help readers recognize how they can build resilience as a way of alleviating the adverse effects of stress. � Chapter 9 discusses the nature of the communication process. In addition, to help readers be- come effective communicators I include an exercise designed to promote active listening skills. � Chapter 13 describes the nature of leadership. With an eye toward helping readers develop their own skills, I present a section that allows people to assess their own styles as leaders. � Chapter 16 explains not only the reasons underlying individuals’ resistance to organizational change but also various ways in which this may be overcome. In addition, I give students an opportunity to practice overcoming resistance to change in an exercise. By doing these things—not only in these examples, but throughout the book—I intend not only to help readers understand OB, but also to enable them to practice it in their own lives. New Coverage
- 45. In revising this book, I made many changes. Some came in the process of seeking that balance to which I just referred, and others were necessitated by my ongoing commitment to highlighting PREFACE 25 the latest advances in the field and to updating examples. Many of the changes are subtle, refer- ring only to how a topic is framed relative to others. A good many others are more noticeable and involve the shifting of major sections into new places and the addition of brand new ones. Here are just a few of the new topics and the chapters in which they appear: � Compressed workweeks (Chapter 1) � Idiosyncratic work arrangements (i-deals) (Chapter 1) � Multifoci approach to organizational justice (Chapter 2) � Neurological bases of organizational justice (Chapter 2) � Basking in reflected glory/cutting off reflected failure (Chapter 3) � Active learning techniques (Chapter 3) � Cascading model of emotional intelligence (Chapter 4) � National differences in expressivity (Chapter 5) � Effects of mood on memory (Chapter 5) � Preferential and nonpreferential affirmative action (Chapter 6) � Affinity groups (part of expanded coverage of diversity) (Chapter 6) � Strongest motivators for people at different organizational levels (Chapter 7) � Pay-for-performance among physicians (Chapter 7)
- 46. � Cross-training (Chapter 8) � Shared mental models (Chapter 8) � Role of media richness in recruitment ads (Chapter 9) � Communicating layoffs via e-mail (Chapter 9) � Why people make unethical decisions (Chapter 10) � Indecisiveness (Chapter 10) � Swift trust (Chapter 11) � Developing trustworthiness (Chapter 11) � Straightforwardness (Chapter 12) � Political skill (Chapter 12) � Assessment centers (Chapter 13) � Promoting authentic leadership (Chapter 13) � Ethical and customer-centered organizational culture (Chapter 14) � Openness to experience and support for creativity (Chapter 14) � Strategic approach to organizational design (Chapter 15) � Communities of practice (Chapter 15) � Product offshoring, services offshoring, and innovation offshoring (Chapter 16) Pedagogical Features Faculty members who have adopted the previous edition of this book have valued its many pedagogical features. They will be pleased to find that these have returned, although updated and revised, of course. End-of-Chapter Pedagogical Features Two groups of pedagogical features may be found at the end of each chapter. The first, named “Points to Ponder,” includes three types of questions: � Questions for Review. These are designed to help students determine the extent to which they picked up the major points contained in each chapter.
- 47. � Experiential Questions. These questions get students to understand various OB phenomena by thinking about experiences in their work lives. � Questions to Analyze. The questions in this category are designed to help readers think about the connections between various OB phenomena and/or how they may be applied in organizational situations. The second category of end-of-chapter pedagogical features is referred to as “Experiencing OB.” This includes the following three types of experiential exercises. � Individual Exercise. Students can complete these exercises on their own to gain personal insight into various OB phenomena. 26 PREFACE � Group Exercise. By working in small groups, students will be able to experience an important OB phenomenon or concept. The experience itself also will help them develop team-building skills. � Practicing OB. This exercise is applications-based. It describes a hypothetical problem situa- tion and challenges the reader to explain how various OB practices can be applied to solving it. Case Features
- 48. Each chapter contains two cases. Positioned at the beginning of the chapter, a Preview Case is designed to set up the material that follows by putting it in the context of a real organizational event. These are either completely new to this edition or updated considerably. A few examples of new Preview Cases include the following: � The Talented Chief of Taleo (Chapter 1) � A Huge Day’s Pay for a Seriously Bad Day’s Work (Chapter 2) � In Tune for Success (Chapter 3) � How to Beat Call-Center Stress (Chapter 5) � A Second Chance (Chapter 6) � PAC Engineering: Employee Motivation, Different Priorities for Different Territories (Chapter 7) � The Woman Who Saved the Chicken Fajitas (Chapter 13) � The Global Face of Social Networking (Chapter 14) � Ghosn Overcomes Cultural Barriers at Nissan (Chapter 16) The end-of-chapter case, Case in Point, is designed to review the material already covered and to bring it to life. Specific tie-ins are made by use of discussion questions appearing after each Case in Point feature. These also are new or updated for this edition. Several examples of new cases include the following: � Floyd’s Barbershop: A Cut Above the Rest (Chapter 1) � HP = Hidden Pretexting? What Did In Dunn? (Chapter 2) � Domino’s Pizza Takes a Bite Out of Turnover (Chapter 6) � Inside the Peloton: Social Dynamics of the Tour de France (Chapter 8) � ARM’s Virtual Success Story (Chapter 9) � A New Era for Newark (Chapter 13) � The Swiss Post: The “Yellow Giant” Moves (Chapter 16)
- 49. Updated Supplements Packages Updating the book has required revising the supplements packages. This was done both for supple- ments available to faculty members who adopt this book in their classes and for their students. Supplements for Instructors At www.pearsonglobaleditions.com/greenberg, instructors can access a variety of print, digital, and presentation resources available with this text in downloadable format. Registration is sim- ple and gives you immediate access to new titles and new editions. As a registered faculty mem- ber, you can download resource files and receive immediate access and instructions for installing course management content on your campus server. If you need assistance, our dedicated technical support team is ready to help with the media supplements that accompany this text. Visit 247pearsoned.custhelp.com for answers to frequently asked questions and toll-free user support phone numbers. The following supplements are available to adopting instructors (for detailed descriptions, please visit www.pearsonglobaleditions.com/greenberg): � Instructor’s Manual. Materials designed to provide ideas and resources for classroom teaching have been updated and revised. � Test Item File. Questions that require students to apply the information about which they’ve read in the text have been revised and updated to
- 50. support changes in this edition. Questions are also tagged to reflect the AACSB Learning Standards. PREFACE 27 � TestGen Test Generating Software. Test management software containing all the material from the Test Item File is available. This software is completely user friendly and allows instructors to view, edit, and add test questions with just a few mouse clicks. � PowerPoint Presentation. A ready-to-use PowerPoint slideshow has been designed for classroom presentation. Use it as is, or edit content to fit your individual classroom needs. Supplements for Students Several supplemental materials are available to help students at this book’s companion Web site, www.pearsonglobaleditions.com/greenberg. These include the following: � Learning Objectives. This is a list of the six major learning objectives for each chapter. � Chapter Quizzes. These are 20-item quizzes that students can use to assess their own famil- iarity with the content of each chapter. As a helpful feature, online “hints” are provided. � Internet Exercises. Each chapter contains three exercises that require students to tap resources
- 51. found on the Internet to expand their understanding of the material in each chapter. � Student PowerPoints. A set of PowerPoint slides is given for each chapter. These outline the major points covered. Finally—and Most Importantly—Acknowledgments Writing is a solitary task. In contrast, the process of turning the millions of bytes of information I generate as a content provider into this beautiful book is anything but solitary. To the contrary, it requires the highly coordinated efforts of a team of dedicated professionals in different profes- sions, all of whom lend their considerable talents toward making this book a reality. In preparing this text, I have been fortunate to work with a variety of hardworking people whose efforts are reflected on every page. Although I cannot possibly thank all of them here, I wish to express my appreciation to those whose help has been most valuable. To begin, I must thank to my former coauthor on this book, Robert A. Baron. His guidance has helped me develop as a textbook author and his friendship over many decades has given me the confidence to undertake the challenges of authoring. Second, I acknowledge sincerely the numerous colleagues who read and commented on various portions of the manuscript for this and earlier editions. Their suggestions were invaluable and helped us in many ways. These include: Royce L. Abrahamson, Southwest Texas State University
- 52. Carlos J. Alsua, University of Alaska Anchorage Rabi S. Bhagat, Memphis State University Ralph R. Braithwaite, University of Hartford Stephen C. Buschardt, University of Southern Mississippi Dawn Carlson, University of Utah M. Suzzanne Clinton, Cameron University Roy A. Cook, Fort Lewis College Cynthis Cordes, State University of New York at Binghamton Aleta L. Crawford, University of Mississippi Tupelo Fred J. Dorn, University of Mississippi Julie Dziekan, University of Michigan–Dearborn Megan L. Endres, Eastern Michigan University Janice Feldbauer, Austin Community College Patricia Feltes, Southwest Missouri State University Olene L. Fuller, San Jacinto College North Richard Grover, University of Southern Maine W. Lee Grubb III, East Carolina University 28 PREFACE
- 53. Courtney Hunt, University of Delaware Ralph Katerberg, University of Cincinnati Paul N. Keaton, University of Wisconsin at LaCrosse Mary Kernan, University of Delaware Daniel Levi, California Polytechnic State University Jeffrey Lewis, Pitzer College Michael P. Lillis, Medaille College Rodney Lim, Tulane University Charles W. Mattox, Jr., St. Mary’s University Daniel W. McAllister, University of Nevada–Las Vegas James McElroy, Iowa State University Richard McKinney, Southern Illinois University Morgan R. Milner, Eastern Michigan University Linda Morable, Richland College Paula Morrow, Iowa State University Audry Murrell, University of Pittsburgh David Olsen, California State University–Bakersfield
- 54. William D. Patzig, James Madison University Shirley Rickert, Indiana University-Purdue University at Fort Wayne Roger A. Ritvo, Auburn University Montgomery David W. Roach, Arkansas Tech University Jane P. Rose, Hiram College Dr. Meshack M. Sagini, Langston University Terri A. Scandura, University of Miami, Coral Gables Holly Schroth, University of California Berkeley Marc Siegall, California State University, Chico Taggart Smith, Purdue University Patrick C. Stubbleine, Indiana University-Purdue University at Fort Wayne Paul Sweeney, Marquette University Craig A. Tunwall, SUNY Empire State College Edward Ward, St. Cloud State University Carol Watson, Rider University Philip A. Weatherford, Embry-Riddle Aeronautical University Richard M. Weiss, University of Delaware
- 55. Stan Williamson, University of Louisiana-Monroe Third, I wish to express appreciation to my editor, Jennifer Collins, who saw me through this project. Sometimes, it required cajoling or even threatening, but mostly her calm encouragement and constant support and direction—not to mention the patience of Job—made it possible for me to prepare this book. Editorial project manager Susie Abraham was always there to help, as was editorial assistant Meg O’Rourke. And, of course, I would be remiss in not thanking Eric Svendsen and members of the Pearson Education team for their steadfast support of this book over the years. Finally, my sincere thanks go to Pearson Education’s top-notch production team for making this book so beautiful—Kelly Warsak, project manager; Janet Slowik, art director; Suzanne DeWorken, permissions coordinator; and Sheila Norman, photo researcher; as well as Sharon Anderson at BookMasters and the staff at Integra Software Services. Their diligence and skill with the many behind-the-scenes tasks required in a book such as this one—not to mention their constant refinements—helped me immeasurably throughout the process of preparing this work. PREFACE 29 30 PREFACE It was a pleasure to work with such kind and understanding professionals, and I am greatly
- 56. indebted to them for their contributions. To all these truly outstanding individuals, and to many others too, my warm personal regards. In Conclusion: An Invitation for Feedback If you have any questions related to this book, please contact our customer service department online at http://www.247.prenhall.com. With all this behind us, now, welcome to the world of organizational behavior. Jerald Greenberg Pearson gratefully acknowledges and thanks the following people for their work on the Global Edition: Charbel N. Aoun, Lecturer, The School of Business, Lebanese American University, Lebanon Nick Barter, Research Fellow, St. Andrews Sustainability Institute and Management School, University of St. Andrews, UK Dr. Patrick K.P. Chan, Assistant Professor, Nanyang Technological University, Singapore Irene Ong Pooi Fong, Senior Lecturer, School of Marketing & Management, Division of Business & Law, Taylor’s University College, Malaysia Roger Fullwood, Associate Lecturer, Business & Management, Manchester Metropolitan University, UK
- 57. Sabine Raeder, Associate Professor of Work and Organizational Psychology, Department of Psychology, Faculty of Social Science, University of Oslo, Norway Yusuf Sidani, Associate Professor, Management, Marketing, and Entrepreneurship Track, Olayan School of Business, American University of Beirut, Lebanon Beatrice Tan, Senior Lecturer, Centre for Innovation & Enterprise, Republic Polytechnic, Singapore Chapter Outline � Organizational Behavior: Its Basic Nature � What Are the Field’s Fundamental Assumptions? � OB Then and Now: A Capsule History � OB Responds to the Rise of Globalization and Diversity � OB Responds to Advances in Technology � OB Is Responsive to People’s Changing Expectations Learning Objectives After reading this chapter, you should be able to: 1. Define the concepts of organization and organizational
- 58. behavior. 2. Describe the field of organizational behavior’s commitment to the scientific method and the three levels of analysis it uses. 3. Trace the historical developments and schools of thought leading up to the field of organizational behavior today. 4. Identify the fundamental characteristics of the field of organizational behavior. 5. Describe how the field of organizational behavior today is being shaped by the global economy, increasing racial and ethnic diversity in the workforce, and advances in technology. 6. Explain how people’s changing expectations about the desire to be engaged in their work and the need for flexibility in work have influenced the field of organizational behavior. 31 P A R T Introduction to Organizational Behavior 1CHAPTE R 1 The Field of Organizational Behavior
- 59. 32 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR Preview Case ■ The Talented Chief of Taleo Ask any executive to identify his or her company’smost important asset and chances are good that the response will be “people.” It’s people who keep busi- nesses alive, making it critical for human assets to be man- aged as carefully as money, inventory, or any other assets. With this in mind, most companies rely on some type of software to assist in the process of hiring, managing, developing, and compensating their employees. Tracking employee data in this fashion helps organizations keep tabs on who’s in their workforces, what they can do, and where they’re going. In the case of 46 of the Fortune 100 companies—and over 4,000 others—this process of “talent management” is entrusted to Taleo, a company of only 900 employees located in Burlingame, California. Since its inception in 1996, the company helped organizations select world-class talent by tapping into the power of the Internet. Although this hardly seems unique today, it certainly was revolution- ary back then. In those high-tech boom years, Taleo grew quickly and acquired other companies, allowing it to expand its services and to gain an international presence. Not surprisingly, however, the company faced challenges at the end of the first decade of the twenty-first century. The economy was nowhere near as robust as it was just a few years earlier, in the late 1990s. If companies aren’t hiring, the need to manage the hiring process online is
- 60. limited, leading Taleo to face a period of uncertainty. If you’re in the business of helping companies man- age people, however, then one would expect you to manage people pretty well yourself. Thanks to Taleo’s tal- ented chairman and CEO, Michael Gregoire, the company did in fact manage people effectively even during the depth of the recession in 2008. Gregoire has been cred- ited for single-handedly getting the company through a period in which its employees felt uncertain about their futures, retaining employees and clients at a time when many normally would be inclined to abandon ship. So, how exactly did Gregoire do it? Experts acknowl- edge that what saved the day was his keen understanding of the dynamics of people in organizations. He discouraged employees from dwelling on their personal uncertainties and encouraged them to focus on what the company does—service its customers by offering solid products that meet their needs. If clients inquired about the company’s problems, the sales force was armed with answers. They were completely open about what was going on behind the scenes but reassured clients that the company would be around to help them in the future. With this in mind, sales reps made it clear what Taleo is all about, describing “our value, our culture, and how we could really help them improve their company, their value, and their customers.” As Gregoire described clients, “They buy software based on the relationship you have.” And Taleo maintains outstand- ing relationships with its clients. The company’s approach to doing this involves having its sales reps help customers realize that they have problems and that Taleo could offer solutions. Because most companies weren’t hiring, it was essential
- 61. for them to keep their most talented employees from going to work at one of the few other companies that were hiring and to get as much as possible from the employees they already have. Taleo’s solution involved using the company’s products to help clients identify the skills that employees had (and that they wished to develop) and then moving them into positions that capitalize on these skills. Underutilizing resources is something that no company can afford today, and Taleo’s products help prevent this from happening. It looks like Michael Gregoire’s emphasis on transparency and emphasizing customer solutions has been successful. In the first three quarters of 2009, when most companies’ bottom lines were hemorrhaging, Taleo’s revenues grew by an eye-popping 31 percent. Gregoire believes that this is the beginning of even more impressive figures to come. We share this optimism, and not just because of the nature and quality of his company’s products. There’s something more fundamen- tal involved—Gregoire’s ability to read people. In fact, his sensitivity to the importance of build- ing relationships with customers and employees is fundamental to Taleo’s success. Gregoire appears to be aware of a key fact: No matter how good a company’s products may be, there can be no company without people. From the founder down to the lowest ranking employee, it’s all about people. If you’ve ever run or managed a business, you know that “people problems” can bring an organization down very rapidly. Hence, it makes sense to realize that people are a critical element in the effective functioning— indeed, the basic existence—of orga-
- 62. nizations. This people-centered orientation is what the field of organizational behavior (OB for short)—hence, this book—is all about. Simply put, OB is the field specializing in the study of human behavior in organizations. CHAPTER 1 • THE FIELD OF ORGANIZATIONAL BEHAVIOR 33 OB scientists and practitioners study and attempt to solve problems by using knowledge derived from research in the behavioral sciences, such as psychology and sociology. Because the field of OB is firmly rooted in science, it relies on research to derive valuable information about organizations and the complex processes operating within them. Such knowledge is used as the basis for helping to solve a wide range of organizational problems. For example, what can be done to make people more productive and more satisfied on the job? When and how should peo- ple be organized into teams? How should jobs and organizations be designed so that people best adapt to changes in the environment? These are just a few of the many important questions addressed by the field of organizational behavior. As you read this text, it will become very clear that OB specialists have attempted to learn about a wide variety of issues involving people in organizations. In fact, over the past few decades, OB has developed into a field so diverse that just about any aspect of what people do in the workplace is likely to have been examined by OB
- 63. scientists.1 The fruits of this labor already have been enjoyed by people interested in making organizations not only more productive, but also more pleasant for the individuals working in them. In the remainder of this chapter, we will give you the background information you will need to understand the scope of OB and its importance. With this in mind, this first chapter is designed to introduce you to the field of OB by focusing on its history and its fundamental characteristics. We will begin by formally defining OB, describing exactly what it is and what it seeks to accomplish. Following this, we will summarize the history of the field, tracing its roots from its origins to its emergence as a modern science. Then, in the final sections of the chapter, we will discuss the wide variety of factors that make the field of OB the vibrant, ever- changing field it is today. At this point, we will be ready to face the primary goal of this book: to enhance your understanding of the human side of work by giving you a comprehensive overview of the field of organizational behavior. Organizational Behavior: Its Basic Nature As the phrase implies, OB deals with organizations. Although you already know from experience what an organization is, a formal definition helps to avoid ambiguity. An organization is a struc- tured social system consisting of groups and individuals working together to meet some agreed- upon objectives. In other words, organizations consist of people, who alone and together in work groups strive to attain common goals. Although this definition is rather abstract, it is sure to take on more meaning as you continue reading this book. We say this
- 64. with confidence because the field of OB is concerned with organizations of all types, whether large or small in size, public or private in ownership (i.e., whether or not shares of stock are sold to the public), and whether they exist to earn a profit or to enhance the public good (i.e., nonprofit organizations, such as charities and civic groups). Regardless of the specific goals sought, the structured social units working together toward them may be considered organizations. To launch our journey through the world of OB, we will address two fundamental questions: (1) What is the field of organizational behavior all about? and (2) Why is it important to know about OB? What Is the Field of Organizational Behavior All About? The field of organizational behavior deals with human behavior in organizations. Formally defined, organizational behavior is the multidisciplinary field that seeks knowledge of behavior in organizational settings by systematically studying individual, group, and organizational processes. This knowledge is used both by scientists interested in understanding human behavior and by practitioners interested in enhancing organizational effectiveness and individual well- being. In this book we highlight both purposes by focusing on how scientific knowledge has been—or may be—used for these practical purposes. Our definition of OB highlights four central characteristics of the field. First, OB is firmly grounded in the scientific method. Second, OB studies individuals, groups, and organizations.
- 65. Third, OB is interdisciplinary in nature. And fourth, OB is used as the basis for enhancing orga- nizational effectiveness and individual well-being. We will now take a closer look at these four characteristics of the field. organization A structured social system consisting of groups and individuals working together to meet some agreed-upon objectives. organizational behavior The field that seeks to understand individual, group, and organizational processes in the workplace. 34 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR OB APPLIES THE SCIENTIFIC METHOD TO PRACTICAL MANAGERIAL PROBLEMS. In our definition of OB, we refer to seeking knowledge and to studying behavioral processes. This should not be surprising since, as we noted earlier, OB knowledge is based on the behavioral sciences. These are fields such as psychology and sociology that seek knowledge of human behavior and society through the use of the scientific method. Although not as sophisticated as many of the “hard sciences,” such as physics or chemistry—nor as mature as
- 66. them—OB’s orientation is still scien- tific in nature. Thus, like other scientific fields, OB seeks to develop a base of knowledge by using an empirical, research-based approach. That is, it is based on systematic observation and measure- ment of the behavior or phenomenon of interest. As we will describe in Appendix 1, organiza- tional research is neither easy nor foolproof. After all, both people and organizations are quite complex, making it challenging sometimes to get a handle on understanding them. It is widely agreed that the scientific method is the best way to learn about behavior in organizations. For this reason, the scientific orientation should be acknowledged as a hallmark of the field of OB. As they seek to improve organizational functioning and the quality of life of people working in organizations, managers rely heavily on knowledge derived from OB research. For example, researchers have shed light on such practical questions as: � How can goals be set to enhance people’s job performance? � How can jobs be designed to enhance employees’ feelings of satisfaction? � Under what conditions do individuals make better decisions than groups? � What can be done to improve the quality of organizational communication? � What steps can be taken to alleviate work-related stress? � What do leaders do to enhance the effectiveness of their teams? � How can organizations be designed to make people highly productive? Throughout this book we will describe scientific research and
- 67. theory bearing on the answers to these and dozens of other practical questions. It is safe to say that the scientific and applied facets of OB not only coexist, but complement one another. Indeed, just as knowledge about the properties of physics may be put to use by engineers, and engineering data can be used to test theories of basic physics, so too are knowledge and practical applications closely intertwined in the field of OB. OB FOCUSES ON THREE LEVELS OF ANALYSIS— INDIVIDUALS, GROUPS, AND ORGANIZATIONS. To best appreciate behavior in organizations, OB specialists cannot focus exclusively on individuals acting alone. After all, in organizations people frequently work together in groups and teams. Furthermore, people—alone and in groups—both influence and are influenced by their work envi- ronments. Considering this, it should not be surprising to learn that the field of OB focuses on three distinct levels of analysis—individuals, groups, and organizations (see Figure 1.1). The field of OB recognizes that all three levels of analysis must be considered to comprehend fully the complex dynamics of behavior in organizations. Careful attention to all three levels of analysis—and the relationships between them—is a central theme in modern OB, and this will be reflected fully throughout this text. For example, we will be describing how OB scientists are con- cerned with individual perceptions, attitudes, and motives. We also will be describing how people communicate with each other and coordinate their activities among themselves in work groups.
- 68. Finally, we will examine organizations as a whole—the way they are structured and operate in their environments, and the effects of their operations on the individuals and groups within them. OB IS MULTIDISCIPLINARY IN NATURE. When you consider the broad range of issues and approaches that the field of OB encompasses, it is easy to appreciate the fact that the field is multidisciplinary in nature. By this, we mean that it draws on a wide variety of social science disciplines. Rather than studying a topic from only one particular perspective, the field of OB is likely to consider a wide variety of approaches. These range from the highly individual-oriented approach of psychology, through the more group-oriented approach of sociology, to issues in organizational quality studied by management scientists. For a summary of some of the key fields from which OB draws, see Table 1.1. If, as you read this book, you recognize some particular theory or approach as familiar, chances are good that you may have learned something about it in another class. What makes OB so special is that it combines these various orientations together into a single field, one that’s very broad and exciting. behavioral sciences Fields such as psychology and sociology that seek knowledge of human behavior and society through the use of the scientific method.
- 69. CHAPTER 1 • THE FIELD OF ORGANIZATIONAL BEHAVIOR 35 TABLE 1.1 The Multidisciplinary Roots of OB Specialists in OB derive knowledge from a wide variety of social science disciplines to create a unique, multidisciplinary field. Some of the most important parent disciplines are listed here, along with some of the OB topics to which they are related (and the chapters in this book in which they are discussed). Discipline Relevant OB Topics Psychology Perception and learning (Chapter 3); personality (Chapter 4); emotion and stress (Chapter 5); attitudes (Chapter 6); motivation (Chapter 7); decision making (Chapter 10); creativity (Chapter 14) Sociology Group dynamics (Chapter 8); teamwork (Chapter 8); communication (Chapter 9) Anthropology Organizational culture (Chapter 14); leadership (Chapter 13) Political science Interpersonal conflict (Chapter 11); organizational power (Chapter 12) Economics Decision making (Chapter 10); negotiation (Chapter 11); organizational power (Chapter 12) Management science Organizational structure (Chapter 15); organizational change (Chapter 16)
- 70. Theory X A traditional philosophy of management suggesting that most people are lazy and irresponsible, and will work hard only when forced to do so. OB SEEKS TO IMPROVE ORGANIZATIONAL EFFECTIVENESS AND THE QUALITY OF LIFE AT WORK. In the early part of the twentieth century, as railroads opened up the western portion of the United States and the nation’s population grew rapidly (it doubled from 1880 to 1920!), the demand for manufactured products was great. New manufacturing plants were built, attracting waves of new immigrants in search of a living wage, and laborers were lured off farms by the employment prospects factory work offered. These men and women found that factories were gigantic, noisy, hot, and highly regimented—in short, brutal places in which to work. Bosses demanded more and more of their employees and treated them like disposable machines, replac- ing those who died from accidents or who quit with others who waited outside factory gates. Clearly, the managers of a century ago held very negative views of employees. They assumed that people were basically lazy and irresponsible, and treated them with disrespect. This very nega- tivistic approach, which has been with us for many years, reflects the traditional view of management, called a Theory X orientation. This philosophy of management assumes that people are basically
- 71. lazy, dislike work, need direction, and will work hard only when they are pushed. Today, however, if you asked corporate officials to describe their views of human nature, you’d probably find some more optimistic beliefs. Although some of today’s managers still think that people are basically lazy, most would argue that the vast majority of people are capable of ORGANIZATIONAL PROCESSES Unit of Analysis Is the Organization INDIVIDUAL PROCESSES Unit of Analysis Is the Individual Person (Topic such as work-related attitudes; see Chapter 6) (Topic such as organizational design; see Chapter 15) GROUP PROCESSES Unit of Analysis Is the Group (Topic such as teamwork; see Chapter 8) FIGURE 1.1 The Three Levels of Analysis Used in Organizational
- 72. Behavior To fully understand behavior in organizations, we must consider three levels of analysis: processes occurring within individuals, groups, and organizations. 36 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR Theory X (traditional approach) Theory Y (modern approach) Distrusting Basically lazy Low (disinterested) Work when pushed Orientation toward people Assumptions about
- 73. people Interest in working Conditions under which people will work hard Accepting, promotes betterment of human resources Need to achieve and be responsible High (very interested) Work when appropriately trained and recognized FIGURE 1.2 Theory X Versus Theory Y: A Summary The traditional, Theory X orientation toward people is far more negativistic than the more contemporary, Theory Y
- 74. approach, which is widely accepted today. Some of the key differences between these manage- ment philosophies are summarized here. working hard under the right conditions. If employees are recognized for their efforts (such as by being fairly paid) and are given an opportunity to succeed (such as by being well trained), they may be expected to put forth considerable effort without being pushed. Management’s job, then, is to create the conditions that make people want to perform as they should. The approach that assumes that people are not inherently lazy, but that they are willing to work hard when the right conditions prevail, is known as the Theory Y orientation. This philosophy assumes that people have a psychological need to work and seek achievement and responsibility. In contrast to the Theory X philosophy of management, which essentially demonstrates distrust for people on the job, the Theory Y approach is strongly associated with improving the quality of people’s work lives (for a summary of the differences, see Figure 1.2). The Theory Y perspective prevails within the field of organizational behavior today. It assumes that people are highly responsive to their work environments, and that the ways they are treated will influence the ways they will act. In fact, OB scientists are very interested in learn- ing exactly what conditions will lead people to behave most
- 75. positively—that is, what makes work both productive for organizations and enjoyable for the people working in them. Why Is It Important to Know About OB? Have you ever had a job where people don’t get along, nobody knows what to do, everyone is goofing off, and your boss is—well, putting it politely— unpleasant? We can’t imagine that you liked working in that company at all. Now, think of another position in which everyone was friendly, knowledgeable, hard working, and very pleasant. Obviously, that’s more to your liking. Such a situation is one in which you are likely to be interested in going to work, doing your best, and taking pride in what you do. What lies at the heart of these differences are all issues that are of great concern to OB scientists and practitioners—and ones we will cover in this book. The key reason to know about OB is simple—it matters. Indeed, OB makes a very big differ- ence in the world of work. Not only does OB explain how people feel about their work, but impor- tantly, how well they perform. In a survey of a wide range of professional workers, it was found that three factors were related to job performance: (1) management and organization, (2) informa- tion technology, and (3) workplace design.2 Although the topics of information technology and workplace design are the primary focus of other fields, they also are related to OB. As a result, we discuss them both in this chapter and elsewhere in this book (e.g., Chapter 15). The first factor, management and organization, is precisely what OB is all about. Thus, studying OB provides
- 76. important insight into work performance. And in today’s competitive business world, overlooking this knowledge is a luxury no one can be without. Theory Y A philosophy of manage- ment suggesting that under the right circumstances, people are fully capable of working productively and accepting responsibility for their work. CHAPTER 1 • THE FIELD OF ORGANIZATIONAL BEHAVIOR 37 “Okay,” you may be asking yourself, “in some companies things are nice and smooth, but in others, relationships are rocky—does it really matter?” As you will see throughout this book, the answer is a resounding yes! For now, here are just a few highlights of specific ways in which OB matters to people and the organizations in which they work. � Companies whose managers accurately appraise the work of their subordinates enjoy lower costs and higher productivity than those that handle their appraisals less accurately.3 � People who are satisfied with the way they are treated on their jobs generally are more pleasant to their coworkers and bosses, and are less likely to quit than those who are dissatisfied with the way others treat them.4
- 77. � People who are trained carefully to work together in teams tend to be happier and more productive than those who simply are thrown together without any organizational support.5 � Employees who believe they have been treated unfairly on the job are more likely to steal from their employers and to reject the policies of their organizations than those who believe they have been treated fairly.6 � People who are mistreated by their supervisors on the job suffer more mental and physical illnesses than those who are treated with kindness, dignity, and respect.7 � Organizations that treat employees well with respect to pay/benefits, opportunities, job security, friendliness, fairness, and pride in the company are, on average, twice as profitable as the Standard & Poor’s 500 companies.8 � Companies that offer good employee benefits and that have friendly working conditions are more profitable than those that are less people-oriented.9 By now, you might be asking yourself: Why, if OB is so important, is there no one person in charge of it in an organization? After all, companies tend to have officials who are responsible for other basic areas, such as finance, accounting, marketing, and production. Why not OB? That’s a good question. If you’ve never heard of a vice president of OB or a manager of OB, it’s because organizations do not have any such formal posts. So who is
- 78. responsible for organizational behavior? In a sense, the answer is everyone! Although OB is a separate area of study, it cuts across all areas of organizational functioning. Managers in all departments have to know such things as how to motivate employees, how to keep people satisfied with their jobs, how to communicate clearly, how to make teams function smoothly, and how to design jobs most effectively. In short, dealing with people at work is every- body’s responsibility on the job. So, no matter what job you do in a company, knowing something about OB is sure to help you do it better. This is precisely why it’s so vitally important for you to understand the material in this book. (However, many of the things people commonly think about behavior in organizations are untrue. That is, they are inconsistent with the findings of careful research on which the field is based. For a look at some such beliefs, please complete the Individual Exercise at the end of this chapter.) What Are the Field’s Fundamental Assumptions? The field of OB is guided by two key assumptions— fundamental ideas that are widely accepted by everyone who does scientific research on OB or who puts these findings into practice in the workplace. First, OB recognizes that organizations are dynamic and always changing. Second, the field of OB assumes there is no one best way to behave in organizations, and that different approaches are called for in different situations. Because of their fundamental nature, let’s exam- ine these assumptions more closely.
- 79. OB Recognizes the Dynamic Nature of Organizations Although OB scientists and practitioners are interested in the behavior of people, they also are concerned about the nature of organizations. Under what conditions will organizations change? How are organizations structured? How do organizations interact with their environments? These and related questions are of major interest to specialists in OB. OB scientists recognize that organizations are not static, but dynamic and ever-changing enti- ties. In other words, they recognize that organizations are open systems—that is, self-sustaining connections between entities that use energy to transform resources from the environment (such as open systems Self-sustaining systems that transform input from the external environment into output, which the system then returns to the environment. 38 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR THROUGHPUT FEEDBACK INPUTS Rehearsing, turning notes on paper to
- 80. pleasing music Theater in which to perform Volunteers to help in the theater Pool of available musicians Donations from the community Information about the interests of the audience Local community in which orchestra is based Community of professional musicians and conductors Volume and length of applause from members of the audience Information about ticket sales and revenue generated from performances Reviews from music critics Creating of marketing campaigns to attract audience members OUTPUTS
- 81. Live musical performances Recorded performances on CD Enjoyment of audience members Money from ticket sales Musical education for community ENVIRONMENTFIGURE 1.3 Organizations as Open Systems: Overview and Example The open systems approach is characteristic of modern-day thinking in the field of OB. It assumes that organizations are self- sustaining—that is, within the environments in which they operate they transform inputs to outputs in a continuous fashion. This example illustrates the symphony orchestra as an open system, but the same concepts apply to all
- 82. organizations. raw materials) into some form of output (for example, a finished product).10 Figure 1.3 summarizes some of the key properties of open systems and provides an interesting example. This diagram illustrates the open systems nature of symphony orchestras, but it applies to all types of organizations. They receive input from their environments and continuously transform it into output. This output gets transformed back to input, and the cyclical operation continues. Consider, for example, how organizations may tap the human resources of the community by hiring and training people to do jobs. These individuals may work to provide a product in exchange for wages. They then spend these wages, putting money back into the community, allowing more people to afford the company’s products. This, in turn, creates the need for still more employees, and so on. If you think about it this way, it’s easy to realize that organizations are dynamic and constantly changing. The dynamic nature of organizations can be likened to the operations of the human body. As people breathe, they take in oxygen and transform it into carbon dioxide. This, in turn, sustains the life of green plants, which emit oxygen for people to breathe. The continuous nature of the open system characterizes not only human life, but the existence of organizations as well. OB Assumes There Is No “One Best” Approach What’s the most effective way to motivate people? What style
- 83. of leadership works best? Should groups of individuals be used to make important organizational decisions? Although these questions are quite reasonable, there is a basic problem with all of them. Namely, they all assume that there is a simple, unitary answer—that is, one best way to motivate, to lead, and to make decisions. Today’s OB scientists agree that there really is no one best approach when it comes to such complex phenomena. To assume otherwise is not only overly simplistic but, as you will see, grossly inaccurate. When it comes to studying human behavior in organizations, there are no simple answers. For this reason, OB scholars embrace a contingency approach—an orientation that recognizes that behavior in work settings is the complex result of many interacting forces. This orientation is a hallmark of modern OB. Consider, for example, how an individual’s contingency approach A perspective suggesting that organizational behavior is affected by a large number of interacting factors. How someone will behave is said to be contingent on many different variables at once. CHAPTER 1 • THE FIELD OF ORGANIZATIONAL BEHAVIOR 39
- 84. personal characteristics (e.g., attitudes and beliefs) in conjunction with situational factors (e.g., relations between coworkers) may all work together when it comes to influencing how a particular individual is likely to behave on the job. With this in mind, explaining OB phenomena often requires saying, “it depends.” As our knowledge of work-related behavior becomes increasingly complex, it is difficult to give “straight answers.” Rather, it is usually necessary to say that people will do certain things “under some conditions” or “when all other factors are equal.” Such phrases provide a clear indication that the contingency approach is being used. In other words, a certain behavior occurs “contin- gent upon” the existence of certain conditions—hence, the name. We will come across this repeatedly throughout this book. OB Then and Now: A Capsule History Although today we take for granted the importance of understanding the functioning of organi- zations and the behavior of people at work, this was not always the case. In fact, it was only 100 years ago that people first became interested in studying behavior in organizations, and only during the last 50 years that it gained widespread acceptance.11 To enable you to appreciate how the field of OB got to where it is today, we will outline its history and describe some of the most influential forces in its development. The Early Days: Scientific Management and the Hawthorne Studies The first attempts to study behavior in organizations came out
- 85. of a desire by industrial efficiency experts to improve worker productivity. Their central question was straightforward: What could be done to get people to do more work in less time? This question was posed in a period of rapid industrialization and technological change in the United States. As engineers attempted to make machines more efficient, it was a natural extension of their efforts to work on the human side of the equation—making people more productive too. SCIENTIFIC MANAGEMENT AND ITS DETRACTORS. Among the earliest pioneers in this area was Frederick Winslow Taylor, an engineer who noticed the inefficient practices of the employees in the steel mill in which he worked and attempted to change them.12 This led Taylor to study the individ- ual movements of laborers performing different jobs, searching for ways to do them that resulted in the fewest wasted movements. Research of this type was referred to as time-and-motion studies. In 1911, Taylor advanced the concept of scientific management, which not only identified ways to design manual labor jobs more efficiently, but also emphasized carefully selecting and training peo- ple to perform them. Although we take these ideas for granted today, Taylor is acknowledged to be the first person to carefully study human behavior at work.13 Despite some successes, Taylor’s approach was credited with destroying the soul of work and dehumanizing factories by transforming men into automatons. As he saw it, designing jobs to make people work more efficiently was just like designing machines to make them work more efficiently. The problem, of course, is that people are not machines.
- 86. Inspired by the prospects of scientific management, but taking a more humanistic approach, other work experts advanced the idea that social factors operating in the workplace are an important determinant of how effectively people work. At the forefront of this effort was Elton W. Mayo, an organizational scientist and consultant widely regarded as the founder of what is called the human relations movement.14 This approach emphasized that the social conditions existing in organizations—the way employees are treated by management and the relationships they have with each other—influence job performance.15 THE HAWTHORNE STUDIES. Mayo’s orientation was developed in the first investigations of organiza- tional behavior, known as the Hawthorne studies, which began in 1927 at Western Electric’s Hawthorne Works near Chicago (see Figure 1.4). Mayo and his associates were interested in deter- mining, among other things, how to design work environments in ways that increased performance. With this objective in mind, they systematically altered key aspects of the work environment (e.g., illumination, the length of rest pauses, the duration of the workday and workweek) to see their effects on job performance. What they found was baffling: Productivity improved following almost every change in working conditions.16 In fact, performance remained extremely high even when scientific management An early approach to man- agement and organizational behavior emphasizing the
- 87. importance of designing jobs as efficiently as possible. time-and-motion study A type of applied research designed to classify and streamline the individual movements needed to perform jobs with the intent of finding “the one best way” to perform them. human relations movement A perspective on organiza- tional behavior that rejects the primarily economic orientation of scientific management and recog- nizes, instead, the impor- tance of social processes in work settings. Hawthorne studies The earliest systematic research in the field of OB, this work was performed to determine how the design of work environments affected performance. 40 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR
- 88. FIGURE 1.4 The Hawthorne Studies The earliest studies in the field of OB were conducted beginning in 1927 at Western Electric’s Hawthorne Works, a factory outside of Chicago. What this research revealed about human nature on the job proved invaluable and stimulated the scientific study of behavior in organizations. conditions returned to normal (i.e., the way they were before the study began). However, workers didn’t always improve their performance. In another set of studies, workers sometimes restricted their output deliberately. Not only did they stop working long before quitting time, but in interviews, they admitted that they easily could have done more if they desired. What accounts for these fascinating findings? Mayo recognized that the answer resided in the fact that how effectively people work depends not only on the physical characteristics of the work environment, but also the social conditions encountered. In the first set of studies, where productivity rose in all conditions, people simply were responding favorably to the special atten- tion they received. It was these social factors more than the
- 89. physical factors that had such posi- tive effects on job performance. Knowing they were being studied made them feel special and motivated them to do their best. In reference to this phenomenon, the general tendency for peo- ple to behave differently than they normally would simply because they believe they are being studied has become known as the Hawthorne effect. The same explanation applies to the case in which people restricted their performance. Here, the employees feared that because they were being studied, the company was eventually going to raise the amount of work they were expected to do each day. So as to guard against the imposi- tion of unreasonable standards (and, hopefully, to keep their jobs!), the workers agreed among themselves to keep their output low. In other words, informal rules (referred to as norms, which we will describe in Chapter 8) were established about what constituted acceptable levels of job performance. Anyone who violated these rules was pressured strongly by their coworkers to change their ways. Again, the social forces in this setting proved to be more potent determinants of job performance than the physical factors studied. This conclusion, based on the surprising findings of the Hawthorne studies, is important because it ushered in a whole new way of thinking about behavior at work. It suggests that to understand the way people behave on the job, we must fully appreciate their attitudes and the processes by which they communicate with each other. This way of thinking, so fundamental to modern OB, may be traced back to Elton Mayo’s pioneering
- 90. Hawthorne studies. Classical Organizational Theory During the same time that proponents of scientific management got scientists thinking about the interrelationships between people and their jobs, another approach to managing people emerged. Hawthorne effect The tendency for people being studied to behave differently than they ordinarily would. B ak er L ib ra ry /H ar va rd B us in es
- 91. s Sc ho ol . CHAPTER 1 • THE FIELD OF ORGANIZATIONAL BEHAVIOR 41 TABLE 1.2 Characteristics of an Ideal Bureaucracy According to Max Weber, bureaucracies are the ideal organizational form. To function effectively, bureaucracies must possess the characteristics identified here. Characteristic Description Formal rules and regulations Written guidelines are used to control all employees’ behaviors. Impersonal treatment Favoritism is to be avoided, and all work relationships are to be based on objective standards. Division of labor All duties are divided into specialized tasks and are performed by individuals with the appropriate skills. Hierarchical structure Positions are ranked by authority level in clear fashion from lower-level to upper-level. Authority structure The making of decisions is determined by
- 92. one’s position in the hierarchy; higher-ranking people have authority over those in lower-ranking positions. Lifelong career commitment Employment is viewed as a permanent, lifelong obligation on the part of the organization and its employees. Rationality The organization is committed to achieving its ends (e.g., profitability) in the most efficient manner possible. This is considered rational. This perspective, known as classical organizational theory, focused on the efficient structuring of overall organizations. The idea was that there is an efficient way to organize work in all organ- izations—much as proponents of scientific management searched for the ideal way to perform particular jobs. One of the most influential classical organizational theorists was Henri Fayol, a French industrialist who pioneered various ideas about how organizations should be structured. For example, Fayol advocated that there should be a division of labor, the practice of dividing work into specialized tasks that enable people to specialize in what they do best. He also argued that in any organization it always should be clear to whom each worker is responsible—that is, which managers have authority over them. Although many of these ideas are regarded as simplistic today, they were considered quite pioneering more than 80 years ago. Another well-known classical organizational theorist is the
- 93. German sociologist Max Weber.17 Among other things, Weber is well known for proposing the bureaucracy—a form of organization in which a set of rules are applied that keep higher-ranking organizational officials in charge of lower-ranking workers, who fulfill the duties assigned to them. As the description suggests, bureaucracies are organizations that carefully differentiate between those who give the orders and those who carry them out. A fan of bureaucracies, Henry Ford openly endorsed “the reduction of the necessity for thought on the part of the worker.”18 Making this possible are a set of rules such as those summarized in Table 1.2. Given your own experiences with bureaucracies, you’re probably not surprised to hear that this particular organizational form has not proven to be the perfect way to organize all work. Weber’s universal view of bureaucratic structure contrasts with the more modern approaches to organizational design (see Chapter 15), which recognize that different forms of organizational structure may be more or less appropriate under different situations. (This is the contingency approach we described earlier.) Also, because bureaucracies draw sharp lines between the people who make decisions (managers) and those who carry them out (workers), they are not particu- larly popular today. After all, contemporary employees prefer to have more equal opportunities to make decisions than bureaucracies permit. Still, contemporary OB owes a great deal to Weber for his many pioneering ideas. Late Twentieth Century: Organizational Behavior as a Social
- 94. Science Based on contributions noted thus far, the realization that behavior in work settings is shaped by a wide range of individual, group, and organizational factors set the stage for the emergence of the science of organizational behavior. By the 1940s, doctoral degrees were awarded in OB and the first textbooks were published, and by the late 1950s and early 1960s, OB was clearly a going concern.19 In the 1970s, active programs of research were going on—investigations into such key processes motivation and leadership, and the impact of organizational structure.20 division of labor The practice of dividing work into specialized tasks that enable people to spe- cialize in what they do best. bureaucracy An organizational design developed by Max Weber that attempts to make organizations operate efficiently by having a clear hierarchy of authority in which people are required to perform well-defined jobs. classical organizational theory An early approach to the study of management that focused on the most efficient way of structuring
- 95. organizations. 42 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR Unfortunately—but not unexpectedly for a new field—the development of scientific investi- gations into managerial and organizational issues was uneven and unsystematic in the middle part of the twentieth century. In response to this state of affairs, the Ford Foundation sponsored a project in which economists carefully analyzed the nature of business education in the United States. They published their findings in 1959 in what became a very influential work known as the Gordon and Howell report.21 This work recommended that the field of management pay greater attention to basic academic disciplines, especially the social sciences. This advice had an enormous influence on business school curricula during the 1960s and promoted the develop- ment of the field of organizational behavior. After all, OB draws heavily on the basic social science disciplines that this report recommended for incorporation into business curricula. It was precisely because of this work that the field of OB rapidly grew into one that borrows heavily from other disciplines (recall Table 1.1 on p. 35), making it the hybrid science that it is today. By the time the twentieth century drew to a close, OB clearly was a multidisciplinary field that was making important contributions to both science and practice.
- 96. OB in Today’s Infotech Age A century ago, when scientists first became aware of the importance of managing people, their primary challenge involved getting people to work efficiently, and they did so by treating people like the machines with which they worked—pushing them as hard as possible, sometimes until they broke down. Then, as we became more aware of the importance of the human element in the workplace, it became fashionable to treat people in a more humane fashion. Today, in what has been called the infotech age, computer technology has made it possible to eliminate vast amounts of grunt work that laborers used to have to perform. Much boring, monotonous, and dangerous physical labor has been eliminated by computer technology, and this has changed the way people work (see Figure 1.5). Modern technology also has changed the way managers operate. Traditionally, low-level workers gathered information and fed it to higher-level workers, who carefully analyzed it all and made decisions for lower-level workers to carry out. Today, however, easy access to informa- tion in online databases has made it possible for almost any worker to gather the facts needed to FIGURE 1.5 Technological Advances Affect (Almost) All Jobs Technology has changed— and continues to change—
- 97. the way many jobs are performed. We doubt that this will be one of them, but you never can tell. R ep ri nt ed b y pe rm is si on o f D an R os an di ch
- 98. . CHAPTER 1 • THE FIELD OF ORGANIZATIONAL BEHAVIOR 43 make his or her own decisions. And, although some managers still make decisions on behalf of their workers, today we are likely to see employees making many of their own decisions with the aid of information stored on computers. Because managers no longer have to be highly involved in their subordinates’ work, they are freed to concentrate on the big picture, to come up with innovative ways to improve their whole organizations (see Chapter 14). At the same time, the best managers have learned that they could use this opportunity, as one observer said, “to tap employees’ most essential humanity, their ability to create, judge, imagine, and build relationships.”22 It is this focus that characterizes today’s organizations—hence, the field of OB. Today, people are likely to care at least as much about the work they do as the money they make. They are likely to be deeply concerned about what their organization stands for and the extent to which they can make meaningful contributions to it. In short, contemporary OB recognizes that people care more than ever about the interpersonal side of work—recognition, relationships, and social interaction. Despite the fact that technology has advanced, changing the way employees work, people
- 99. have changed very little. Although they may take different forms, our needs and desires are pretty much the same. All of us are human, and just because we work differently than before, we should not discard the things about the behavior of people we have learned over the years.23 Twenty-first-century OB scientists are busily at work cultivating that humanity by doing things that make it possible for people to do work that is more challenging, meaningful, and interesting to them than ever before. Although this focus is not entirely unique to the twenty-first century, it’s safe to say that its sharp emphasis is indeed a key characteristic of modern OB. To appreciate the nature of OB as a contemporary field, it is important to recognize its con- nection to the various economic, social, and cultural trends and forces that shape today’s society. Specifically, these include three prominent trends: (1) the rise of global businesses with cultur- ally diverse workforces, (2) rapid advances in technology, and (3) the rising expectations of peo- ple in general. We will discuss these forces in the remainder of this chapter. OB Responds to the Rise of Globalization and Diversity When your grandfather went to work, chances are good that he faced a world that was quite dif- ferent from today. For one, the company he worked for was likely to be headquartered in the United States and faced competition from other U.S.-based organizations. He also was unlikely to find many women on the job—at least, not in high-ranking
- 100. positions—nor was he likely to find many immigrants working with him. And, when he reached 65, in all likelihood, he retired. As we will describe here, this picture has all but disappeared. Today’s organizations are global in nature and are populated by women and people of color, not to mention individuals who are working well into what would have been considered “retirement years.” All of this, as we will note, has important implications for OB. International Business and the Global Economy To fully understand behavior in organizations, we must appreciate the fact that today’s organiza- tions operate within an economic system that is truly international in scope.24 The nations of the world are not isolated from one another economically; what happens in one country has effects on other countries. As an illustration, consider that when a massive earthquake devastated the Caribbean island nation of Haiti in January 2010, its economic effects (although small because of the country’s poor economic base) were felt beyond its borders. For example, the loss of Haiti’s textile and apparel businesses have been felt by suppliers and customers throughout the world who counted on Haitian goods to sustain their own businesses.25 This tendency for the world’s countries to be influenced by one another is known as globalization—the process of interconnecting the world’s people with respect to the cultural, economic, political, technolog- ical, and environmental aspects of their lives.26 The trend toward globalization, widespread in recent years, has been driven by three major
- 101. forces. First, technology has been involved in several ways. Technology has drastically lowered the cost of transportation and communication, thereby enhancing opportunities for international globalization The process of intercon- necting the world’s people with respect to the cultural, economic, political, techno- logical, and environmental aspects of their lives. 44 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR commerce. Technology also has helped companies bridge some of the inevitable cultural gaps (for an interesting example, see the section “Today’s Diverse and Global Organizations” p. 46). Second, laws restricting trade generally have become liberalized throughout the world (e.g., in the United States and other heavily industrialized countries, free trade policies have been advo- cated). Third, developing nations have sought to expand their economies by promoting exports and opening their doors to foreign companies seeking investments. If international trade is the major driver of globalization, then the primary vehicles are multinational enterprises (MNEs)—organizations that have significant operations (typically 25 percent or more of their output capacity) spread throughout
- 102. various nations but are headquar- tered in a single nation. As of 2009, the top five largest MNEs in the world were Royal Dutch Shell, Exxon Mobil, Wal-Mart Stores, British Petroleum (BP), and Chevron.27 Interestingly, not too many years ago, such lists also contained automakers (e.g., General Motors and Ford), but given their financial downturns in recent years, it’s not surprising to find that they no longer appear. Still, the companies that sell oil and gasoline to fuel our cars dominate this list. As you might imagine, the rise of MNEs has resulted in large numbers of people who are citizens of one country but who live and work in another country for some extended periods of time. Such individuals are known as expatriates, or expats for short (see Figure 1.6). Over the years, the number of expats throughout the world has risen, fallen, and shifted direction along with shifts in economic development throughout the world. As economies grow in vari- ous countries, MNEs establish offices there to capitalize on the boom. By the same token, shrinking economies sometimes leave expats without jobs in their newly adopted nations. In 2009 this occurred in Dubai on a very large scale as this once-booming Middle Eastern country went bust. Some 3.62 million expats had to return home after their formerly lucrative jobs dried up, making it impossible for them to maintain the lavish lifestyles they lived in Dubai during the good times.28 While working abroad, people are exposed to different cultures—the set of values, customs,
- 103. and beliefs that people have in common with other members of a social unit (e.g., a nation).29 And, when people are faced with new cultures, it is not unusual for them to become confused and disoriented—a phenomenon known as culture shock.30 People also experience culture shock when they return to their native cultures after spending time away from it—a process of readjust- ment known as repatriation. In general, the phenomenon of culture shock results from people’s recognition of the fact that others may be different from them in ways that they never imagined, and this takes some getting used to. multinational enterprises (MNEs) Organizations that have significant operations spread throughout various nations but are headquar- tered in a single nation. expatriates (expats) People who are citizens of one country, but who live and work in another country. FIGURE 1.6 Expats: Away From Home But Right at Home Although they work in London, these American
- 104. expatriates felt right at home as they gathered to watch the returns of the 2008 presidential election on CNN. They seem to be quite excited about the results, too. culture shock The tendency for people to become confused and disoriented as they attempt to adjust to a new culture. repatriation The process of readjusting to one’s own culture after spending time away from it. culture The set of values, customs, and beliefs that people have in common with other members of a social unit (e.g., a nation). R ic ha rd B ak er
- 105. /A la m y Im ag es . CHAPTER 1 • THE FIELD OF ORGANIZATIONAL BEHAVIOR 45 Ac ce pt an ce o f N ew C ul tu
- 106. re High (tend to understand and accept) Low (tend to be confused and reject) 1 2 3 Months Living in New Culture 4 5 6 Frustration and confusion about new culture— culture shock Optimism and excitement about new culture Understand and accept new culture FIGURE 1.7
- 107. Adjusting to Foreign Culture: The General Stages People’s adjustment to new cultures generally follows the U-shaped curve illustrated here. After an initial period of excitement, culture shock often sets in. Then, after this period of adjustment (about 6 months), the more time spent in the new culture, the better it is accepted. convergence hypothesis A biased approach to the study of management, which assumes that princi- ples of good management are universal, and that ones that work well in the United States will apply equally well in other nations. Scientists have observed that the process of adjusting to a foreign culture generally follows a U-shaped curve (see Figure 1.7).31 That is, at first, people are optimistic and excited about learning a new culture. This usually lasts about a month or so. Then, for the next several months, they become frustrated and confused as they struggle to learn their new cultures (i.e., culture shock occurs). Finally, after about six months, people adjust to
- 108. their new cultures and become more accepting of them and satisfied with them. These observations imply that feelings of cul- ture shock are inevitable. Although some degree of frustration may be expected when you first enter a new country, the more time you spend learning its ways, the better you will come to understand and accept it.32 In general, culture shock results from the tendency for people to be highly parochial in their assumptions about others, taking a narrow view of the world by believing that there is one best way of doing things. They also tend to be highly ethnocentric, believing that their way of doing things is the best way. For example, Americans tend to be highly parochial by speaking only English (whereas most Europeans speak several languages), and ethnocentric by believing that everyone else in the world should learn their language. As we just explained, over time, exposure to other cultures teaches people that there may be many different ways of doing the same thing (making them less parochial), and that these ways may be equally good, if not better (making them less ethnocentric). Although these biases may have been reasonable for Americans over 50 years ago when the United States was the world’s dominant economic power (producing three-quarters of its wealth), they would be extremely costly today. Indeed, because the world’s economy is global in nature, suggesting that highly parochial and ethnocentric views have no place in contemporary organizations. Analogously, highly narrow and biased views about the
- 109. management of people in organizations may severely limit our understanding about behavior in organizations. During the 1950s and 1960s, management scholars tended to overlook the importance of cultural differences in organizations. They made two key assumptions: (1) that principles of good management are universal, and (2) that the best management practices are ones that work well in the United States.33 This highly inflexible approach is known as the convergence hypothesis. Such a biased orientation reflects the fact that the study of behavior in organizations first emerged at a time in which the United States was the world’s predominant economic power. 46 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR With the ever-growing global economy, it has become clear that an American-oriented approach may be highly misleading when it comes to understanding the practices that work best in various countries. In fact, there may be many possible ways to manage effectively, and these will depend greatly on the individual culture in which people live. This alternative approach, which is widely accepted today, is known as the divergence hypothesis. Following this orienta- tion, understanding the behavior of people at work requires carefully appreciating the cultural context within which they operate. For example, whereas American cultural norms suggest that
- 110. it would not be inappropriate for an employee to question his or her superior, it would be taboo for a worker in Japan to do the same thing. Thus, today’s organizational scholars are becoming increasingly sensitive to the ways in which culture influences organizational behavior (this point is illustrated in several places in every chapter of this book). The Shifting Demographics of the Workforce: Trends Toward Diversity Thus far, we have been discussing cultural differences between people from companies in differ- ent nations. However, widespread cultural differences also may be found within organizations in the United States. For example, the prevalence of women in the workforce, and the growing diversity of people from different races and ethnic groups, cannot be missed. Indeed, a broad range of people from both sexes as well as different races, ethnic groups, and nationalities can be found throughout U.S. organizations, and as summarized in Figure 1.8, their proportions have been changing.36 Modern organizations have taken steps to accommodate—and capitalize on— growing levels of diversity within the workforce. It’s also the case that Americans today are living longer, healthier lives than their parents and grandparents, keeping them in the workforce far longer than before. These trends take many forms, all of which have important implications for the field of OB. Today’s Diverse and Global Organizations What’s in a Name? It Depends Where You Live
- 111. In the United States and most English-speaking countries, we know that people named “Margaret” often go by “Peggy,” that “Jack” may be “John,” “James” may be “Jim,” and that “Robert” may be called “Bob,” or “Rob.” If you know the culture, these alternative names are not surprising. But, if you’re doing business on a global scale, such name variations are likely to be as foreign to you as the native language itself. Besides being polite and avoiding embarrassment in busi- ness meetings, why might anyone care about this? To IBM, which in March 2006 purchased Language Analysis Systems (LAS), a company that develops multicultural name recogni- tion technology, there are several reasons.34 For example, banks and insurance companies attempting to combat money laundering and fraud may need to be aware of criminals attempting to disguise their identities by using variations of their names. The service also is useful to companies whose clients don’t have nefarious motives, but who forget what nickname they used on a given occasion. Airlines, for exam- ple, find it useful to be able to search for reservations and other information provided using different names. Similarly, hospitals use the technology to avoid duplicating medical pro- cedures administered to patients. Although the exact way the LAS technology works is highly technical, what it does is straightforward. Drawing on a database of nearly a billion names from around the world, the software verifies the origin, cultural variations, and meaning of names. It focuses on nicknames, titles, format changes, and typographical errors. (Since the first name of the author of this book is “Jerald,”
- 112. you might imagine he has found his name listed as “Gerald” or “Gerold” on more than one occasion.) IBM’s acquisition of LAS was not an isolated move. Rather, it was the seventeenth company acquired in the five years between 2001 and 2006 to help customers use technology to manage and deliver information in today’s global business world. In its announcement of this acquisition, IBM’s official statement underscores its commitment to such technology: Names are often times overlooked as miniature databases of knowledge, but that’s precisely what they are. In our global society, the ability to accurately recognize and manage the building blocks of an individual’s name can provide the key to recognizing identities across cultures, genders, and meanings. This is where IBM’s global name recognition technology can help.35 To companies around the world, this represents a useful service. To readers of this book, however, the existence of this service reflects a key point: namely, that technology plays a cen- tral role in helping today’s organizations address the challenges of globalization. Name recognition may seem minor to most of us, but on a global scale it’s quite important—and as IBM offi- cials surely hope, big business. divergence hypothesis The approach to the study of management which recognizes that knowing how to manage most effectively requires clear
- 113. understanding of the culture in which people work. CHAPTER 1 • THE FIELD OF ORGANIZATIONAL BEHAVIOR 47 White, Non-Hispanics Men Women African Americans Hispanics Asians Pe rc en ta ge o f U .S . L
- 114. ab or F or ce 1976 1986 1996 2006 0 10 20 30 40 50 60 70 80 90 Year White, non-Hispanics are becoming a smaller proportion of the labor force
- 115. Men and women are becoming equally prevalent in the labor force African Americans, Hispanics, and Asians are becoming a larger proportion of the labor force MORE WOMEN ARE IN THE WORKFORCE THAN EVER BEFORE. In the 1950s, the “typical American family” was characterized by a man who went to work and his wife who stayed at home and watched the children. Although this profile still may be found, it is far from typical. In fact, women now com- prise half of the workforce, a figure that has risen steadily over the years (see Figure 1.8).37 This trend stems not only from economic necessity but also from the growing social accept- ance of women working outside the home. As women, who traditionally have worked inside the home, have moved to working outside the home, companies have found it beneficial—or even necessary, in some cases—to make accommodations that help make this possible. (For a look at some of the most popular practices in this regard, see Table 1.3.) RACIAL AND ETHNIC DIVERSITY IS REALITY. Just as yesterday’s workers were primarily males, they also were primarily white. However, just as growing numbers of women have made men less of a majority, so too has an influx of people from different
- 116. racial and ethnic groups and differences in birth rates made white people a smaller majority. Specifically, the U.S. Census Bureau reported as follows:38 � Between 1980 and 2000, the population of minority group members grew 11 times as rapidly as the White non-Hispanic population. � Currently, people of color comprise one-third of the U.S. population, but they are expected to be the majority by 2042. � By 2050, Hispanics will comprise 30 percent of the U.S. population. � The number of people in the U.S. who consider themselves to be multiracial is expected to triple from 5.2 million to 16.2 million by 2050. It is apparent that the trend toward demographic diversity is in full swing today. In fact, so-called “minority” group members, as a whole, currently outnumber traditional majority group members in two U.S. states, California and New Mexico.39 As these trends suggest, the meaning of the term minority is changing rapidly and is well on the way to becoming obsolete.40 FIGURE 1.8 Demographic Shifts in the U.S. Labor Force Although White people remain the largest portion
- 117. of the U.S. labor force, they are becoming a smaller segment as people of other races and ethnic groups are growing in numbers. Additionally, although the numbers differ for various jobs, in 2009 the overall percentage of men and women in the workforce was reported to be equal. (Note that equality in numbers had not yet been reached when the statistics in this graph were reported only three years earlier.) Source: U.S. Department of Labor, 2009; see Note 37. 48 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR TABLE 1.3 Employee Support Policies With increasing frequency, companies are taking proactive steps to help men and women meet their personal needs and family obligations. In so doing, they make it possible for employees to satisfy the demands imposed by their nonwork lives. This allows companies to draw on the talents of a diverse group of prospective employees who otherwise might not be able to
- 118. lend their talents to the organization. The three practices identified here have proven especially useful in this regard. Practice Description Example Child-care facilities Sites at or near company locations where parents can leave their children while they are working. At Toyota’s Georgetown, Kentucky, plant, a child-care center is open 24 hours a day, offering outstanding services at very reasonable fees. Elder-care facilities Centers where aged parents of employees can stay and be cared for while their adult children are working. Given the rapid aging of the population, this benefit is growing in popularity. At its Armonk, New York, head- quarters, IBM has been offering elder care to employees for over two decades. Recently, the com- pany expanded this service by launching an online support group for individuals taking care of elderly parents. Personal support policies Widely varied practices that help employees meet the demands of their family lives, freeing them
- 119. to concentrate on their work. The Wilton Connor Packaging Co. in Charlotte, North Carolina, offers an on-site laundry, high school equivalency classes, door-to-door transportation, and a children’s clothing swap center. PEOPLE ARE LIVING—AND WORKING—LONGER THAN EVER BEFORE. In the years after World War II, the peacetime economy flourished in the United States. With it came a large increase in population as soldiers returned from war and began families. The generation of children born during this period is referred to widely as the baby boom generation. Today, this large wave of individuals is approaching retirement age. But, because retirement is no longer automatic at age 65, aged baby boomers will comprise a growing part of the population in the next few years (see Figure 1.9). In fact, by 2030 almost 20 percent of the U.S. population will be at least 65. Already, people over 85 years old are the fastest-growing segment of the U.S. population.41 Two things occur as a result of this trend. First, older people in the workforce put more of a drain on the health-care system. As healthy as they may be thanks to modern medicine, it’s a simple baby boom generation The generation of children born in the economic boom period following World War II.
- 120. FIGURE 1.9 People Are Living and Working Longer Than Ever Don’t tell Christy McDermott that the typical retirement age is 65. This 75-year old plans to continue working as a Wal-Mart greeter for as long as his health permits. child-care facilities Sites at or near company locations where parents can leave their children while they are working. elder-care facilities Facilities at which employees at work can leave elderly relatives for whom they are responsible (such as parents and grandparents). personal support policies Widely varied practices that help employees meet the demands of their family lives, freeing them to concentrate on their work. Z
- 121. um a/ N ew sc om . CHAPTER 1 • THE FIELD OF ORGANIZATIONAL BEHAVIOR 49 truth that older bodies eventually wear out and require medical attention. And, of course, the physi- cal prowess of older people surely isn’t as great as it was when they were younger. This limits the physical nature of the work they can perform, which can be an issue for some manual labor jobs. But because technology has made physical labor less important than it was in years past, this is less of a problem today than it might have been a generation or so ago. Second—and the other side of the coin—because older people are more experienced on the job, they offer skills that only time alone can provide. In fact, as such individuals retire, it is not unusual for them to leave gaps in the workplace that are difficult to fill. In many organizations, this creates serious problems. When older, top executives retire, for example, they take with them decades of experience that are almost impossible to replace. For this reason, many companies are
- 122. instituting programs designed to help keep older employees working a little longer before ceas- ing employment completely. Among these are the following: � Phased-retirement. These are plans in which individuals who are approaching the usual retirement age of 65 can make a transition to full retirement by continuing to work, usually with a reduced workload, as a transition to full-time retirement. This arrangement, which presumably allows the best of both work and retirement, can take the form of permitting part-time or seasonal work (in which employees work only on occasion), and offering extended leaves of absence (in which employees can take off time but can return to work when ready to do so). � Deferred retirement option plan (DROP). This arrangement allows a person who has reached retirement age to continue working while depositing his or her retirement benefit into a separate account that he or she can claim as a lump sum when formally retired, usually one to five years later. This provides a tax incentive for people who want to extend their working years a bit beyond the usual retirement age. It is important to recognize that such programs are important not only today, when there are many older individuals in the workplace, but they promise to be even more important when the next generation of workers approaches retirement age. We say this because there has been another recent wave of births: A record number of babies were born in the United States in 2007,
- 123. over 4.31 million, the most since the middle of the baby boom in 1957.42 As such, we can expect a large influx of Americans to enter the workplace in the next two decades. IMPLICATIONS FOR OB. That more women, people of color, and older workers are in the work- force than ever before is not merely an idle sociological curiosity. It also has important impli- cations for OB—ones that we will examine more closely in this book. After all, the more people differ from each other, the more challenges they are likely to face when interacting with one another. How these interactions play out is likely to be seen on the job in important ways. For example, as we will describe, differences in age, gender, and ethnic group membership are likely to bring with them differences in communication style that must be addressed for organ- izations to function effectively (see Chapter 9). It also is the case that people at different stages of their lives are likely to be motivated by different things (see Chapter 7) and to be satisfied with different aspects of their jobs (see Chapter 7). And, as workers adjust to a wider variety of people in the workplace, issues about their norms and values (see Chapter 8) are likely to come up, as well as their willingness to accept others who are different from themselves (see Chapter 6). This can have important implications for potential stress and conflict in the work- place (see Chapters 5 and 11) and their career choices (see Appendix 2), which may be expected to influence their capacity to work effectively as members of the same work teams (see Chapter 8).
- 124. OB Responds to Advances in Technology Since the Industrial Revolution in the nineteenth century, people have performed carefully pre- scribed sets of tasks—known as jobs—within large networks of workers who answered to those above them—hierarchical arrangements known as organizations. This picture, although highly simplistic, does a good job of characterizing the working arrangements that most people had dur- ing much of the twentieth century. Today, however, in the twenty-first century, the essential nature of jobs and organizations as we have known them has changed and continues to change all 50 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR the time (a fact that we will chronicle in Chapter 16). Although many factors are responsible for this, experts agree that a major catalyst is rapidly advancing computer technology, especially the use of the Internet and wireless technology.43 As you might imagine, this state of affairs has important implications for organizations— and, hence, the field of OB. After all, as more work is shifted to digital brains, some work that once was performed by human brains becomes obsolete. At the same time, new opportunities arise as people scurry to find their footing amid the shifting terrain of the high-tech revolution. The implications of this for OB are considerable. We will now consider some of the most promi-
- 125. nent trends in the world of work that have been identified in recent years. These involve how work is organized and performed, as well as the need for flexibility. Leaner Organizations: Downsizing and Outsourcing Technology has made it possible for fewer people to do more work than ever before. Automation, the process of replacing people with machines, is not new, of course; it has gone on, slowly and steadily, for decades. Today, however, because it is not large mechanical devices but digital data that are manipulated, scientists refer instead to the informating of the workplace. The term informate describes the process by which workers use computer information technology to transform a once-physical task into one that involves manipulating a sequence of digital commands.44 Thanks to this process, for example, today’s auto workers can move around large hoods and trunk lids by pressing a few buttons on a keypad instead of physically manipu- lating them by hand. Likewise, the process of placing sales orders often is informated. Thanks to computer systems analysts, an order entered into a salesperson’s laptop computer can trigger a chain of events involving everything associated with the job: placing a sales order, manufactur- ing the product to exact specifications, delivering the final product, sending out the bill, and even crediting the proper commission to the salesperson’s payroll check. Unlike the gradual process of automation, today’s technology— and the process of
- 126. informating—is occurring so rapidly that the very nature of work is changing as fast as we can keep up. With this, many jobs are disappearing, leaving organizations (at least the most suc- cessful ones!) smaller than before.45 Indeed, organizations have been rapidly reducing the number of employees needed to operate effectively—a process known as downsizing.46 Typically, this involves more than just laying off people in a move to save money. It is directed at adjusting the number of employees needed to work in newly designed organizations, and is therefore also known as rightsizing.47 Whatever you call it, the bottom line is clear: Many organizations need fewer people to operate today than in the past—sometimes, far fewer. It’s important to note that we’re talking here not about jobs lost due to economic downturns but to changes in the way work is organized that no longer makes certain jobs necessary. Another way organizations are restructuring is by completely eliminating those parts of themselves that focus on noncore sectors of the business (i.e., tasks that are peripheral to the organization) and hiring outside firms to perform these functions instead—a practice known as outsourcing (see Chapter 16).48 By outsourcing secondary activities, an organization can focus on what it does best, its key capability—what is known as its core competency. Companies like ServiceMaster, which provides janitorial services, and ADP, which provides payroll processing services, make it possible for their client organizations to concentrate on the business functions
- 127. most central to their missions. So for example, by outsourcing its maintenance work or its pay- roll processing, a manufacturing company may grow smaller and focus its resources on what it does best, producing goods. Some critics fear that outsourcing represents a “hollowing out” of companies—a reduction of functions that weakens organizations by making them more dependent on others.49 Others counter that outsourcing makes sense when the work that is outsourced is not highly critical to competitive success (e.g., janitorial services), or when it is so highly critical that it only can succeed by seeking outside assistance.50 For example, it is a widespread practice for companies selling personal computers today to outsource the manufacturing of various components (e.g., hard drives, CD-ROMs, and chips) to other companies.51 Although this practice may sound atypical compared to what occurs in most manufacturing companies, it isn’t. In fact, one indus- try analyst has estimated that 30 percent of the largest American industrial firms outsource over half their manufacturing.52 informate The process by which workers manipulate objects by “inserting data” between themselves and those objects. downsizing The process of adjusting the number of employees
- 128. needed to work in newly designed organizations (also known as rightsizing). rightsizing See downsizing. outsourcing The process of eliminating those parts of organizations that focus on noncore sectors of the business (i.e., tasks that are periph- eral to the organization), and hiring outside firms to perform these functions instead. core competency An organization’s key capability, what it does best. CHAPTER 1 • THE FIELD OF ORGANIZATIONAL BEHAVIOR 51 FIGURE 1.10 Virtual Organizations in the Movie Business Next time you exit the movie theater, take a close look at the credits. Not only are various actors and actresses listed along with technicians of all types, but also a number of different companies. The making of a modern motion picture, such as James Cameron’s instant
- 129. classic Avatar, is a good example of a so-called virtual organization. Various organizations with different areas of expertise (e.g., casting, sound recording, special effects, etc.) join forces long enough to bring a final product to fruition. The Virtual Organization As more and more companies are outsourcing various organizational functions and are paring down to their core competencies, they might not be able to perform all the tasks required to complete a proj- ect. However, they certainly can perform their own highly specialized part of it very well. Now, if you put together several organizations whose competencies complement each other and have them work together on a special project, you’d have a very strong group of collaborators. This is the idea behind an organizational arrangement that is growing in popularity— the virtual organization. A virtual organization is a highly flexible, temporary organization formed by a group of companies that join forces to exploit a specific opportunity (we will describe them more thoroughly in Chapter 15).53 For example, various companies often come together to work on special projects in the entertainment industry (e.g., to produce a motion picture—see Figure 1.10) and in the field of construction (e.g., to build a shopping center). After all, technologies are changing so rapidly and skills are becoming so specialized these days that no one company can do everything by itself. And so, they join forces temporarily to form virtual organizations—not permanent organizations, but temporary ones without their own offices or organization charts. Although virtual organiza-
- 130. tions are not yet common, experts expect them to grow in popularity in the years ahead.54 As one consultant put it, “It’s not just a good idea; it’s inevitable.”55 Telecommuting: Going to Work Without Leaving Home In recent years, the practice of telecommuting (also known as teleworking) has been growing in popularity. This is the practice of using communications technology to enable work to be per- formed from remote locations, such as the home or anyplace with e-mail access. Although telecommuting was somewhat experimental at the end of the twentieth century, it’s in full swing today. In fact, telecommuting currently is estimated to be used by approximately 14 million American workers on a regular basis.56 Some companies, such as Booz Allen Hamilton, eBay, Goldman Sachs, the Principal Financial Group, S. C. Johnson & Son, and Yahoo! currently have the most active telecommuting programs. telecommuting (teleworking) The practice of using communications technology to perform work from remote locations, such as one's home. virtual organization A highly flexible, temporary organization formed by a group of companies that join forces to exploit a specific opportunity.
- 131. Item not available in this eBook 52 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR As shown in Figure 1.11, there are a wide variety of locations from which people telecom- mute.57 Many people rely on more than just one, an average of 3.4 locations, in fact. For many, their local Starbucks represents “the third space” beyond office and home, wherever a notebook computer, a wireless network, and a latte may be found. But, with rapid increases in the avail- ability of broadband connections in people’s homes, the home is the fastest-growing location. Both employees and employers enjoy the benefits of telecommuting. For example, telecommut- ing makes it possible for employees to avoid the hassle and expenses of daily commuting, which, in an era of congested roads and expensive fuel costs, can be dramatic. Employees working at home also enjoy saving money that they would have spent purchasing work clothing (unless you happen to wear ties or pantyhose around the house) and buying meals in restaurants and from vending machines. In fact, it has been estimated that each teleworker saves tens of thousands of dollars per year, taking into account all expenses.58 Saving money is not the only reason why most telecommuters like the arrangement. They also enjoy the flexibility it gives them to balance work and family matters.59 Telecommuting also makes it possible for companies to save
- 132. millions of dollars in expenses for office facilities.60 At Hewlett-Packard, for example, about $230 million is being saved in annual office expenses. This occurs because companies are able to get more work done in the same space. Cisco Systems, for example, has so many teleworkers that it now takes only the physical space of 88 workers to do the work of 140 employees.61 IBM also has been able to slash its office space by as much as 55 percent in some locations. As you might imagine, the savings are particularly important to small start-up companies, which can hire workforces without having to make large investments in office space. Importantly, telecommuting allows companies to comply with governmental regulations (e.g., the Federal Clean Air Act of 1990) requiring them to reduce the number of trips made by their employees. In fact, the federal government is a major proponent of telecommuting. The Securities and Exchange Commission (SEC), the State Department, the Department of Justice, and four other large federal agencies now are required by law to offer all eligible workers the opportunity to telecommute. A particularly interesting and all-too-real reason to use telecommuting is to help organizations get up and running after a disaster strikes. After all, if an organization’s assets are spread out—as is the case if they are in the hands of employees who are geographically dispersed—they are less vulnerable to attacks by human threats (e.g., terrorist strikes, arsonists) and natural disasters (e.g., floods, hurricanes, and tornadoes). (For specific
- 133. recommendations about how to incorporate telecommuting into a plan to prepare for disasters, see the “OB in Practice” section on p. 53.) Despite these benefits, as you might imagine, telecommuting is not for everyone; it also has its limitations.62 It works best on jobs that require concentration, have well-defined beginning Millions of Telecommuters Train or plane Park or outdoors Client's office While on vacation Car 0 10 7.8 15.1 16.3 20.6 24.3 25.6 20 30
- 134. Home FIGURE 1.11 From Where Do People Telecommute? Technology makes it possible for many of today’s employees to do their work from locations other than their offices. As summarized here, several locations are particularly popular. Source: IATC, 2009; see Note 57. CHAPTER 1 • THE FIELD OF ORGANIZATIONAL BEHAVIOR 53 and end points, are easily portable, call for minimal amounts of special equipment, and can be done with little supervision.64 Fortunately, at least some aspects of most sales and professional jobs meet these standards. Even so, making telecommuting work requires careful adjustments in the way work is done. Also, many people just don’t have the kind of self-discipline needed to get work done without direct supervision. To see if you and your associates have what it takes to suc- ceed at telecommuting, see the Group Exercise at the end of this chapter. OB Is Responsive to People’s Changing Expectations OB scientists do not work in a vacuum. Instead, they are highly responsive to people’s changing expectations with respect to various aspects of work. This is the case with respect to two par-
- 135. ticular areas of concern to the field of OB: (1) employees’ and employers’ desire for engagement, and (2) the flexibility employees expect from employers. We now discuss each of these forces and their impact on modern OB. Employees and Employers Desire Engagement When referring to people who are preparing to wed, we say that they are “engaged.” Typically, such individuals believe in each other, they want to share a bright future together, they are respectful to each other, and they are willing to do what it takes to ensure the other’s happiness Telecommuting as a Business Continuity Strategy For the average person, poignant memories of the 9/11 terrorist attacks and Hurricane Katrina tragically linger on, but their toll on business adds another dimension of suffering among the untold thousands whose businesses and livelihoods either were disrupted or vanished in their wakes. As extreme as these acts were, they are but a few of the many disasters of one form or another that dis- rupt the operations of about one in five American businesses in an average year.63 Other events—such as toxic spills, earthquakes, water main breaks, or communication cables severed by careless construction workers—also can disrupt business operations, underscoring the need for businesses to have sets of procedures in place to get up and running in the event of such disruptions. Such preparations, known as
- 136. business continuity plans, are in place in about only 40 percent of small organizations, leaving the others vulnerable in times of crisis. Specifically, these refer to system- atic sets of plans designed to help organizations get up and running again in the event of a disruption of some sort. Indeed, although small businesses are the least prepared, they have the most to lose because their limited resources make it difficult, if not impossible, to sustain any disruption. Large organizations are somewhat better prepared, with plans in place in 80 percent. But, given that the average loss per hour of downtime in Fortune 1000 firms runs about $78,000, and that disruptions may last for days, weeks, or even months, no organization can afford to ignore preparing for the inevitable. Telecommuting is a key part of any business continuity plan. The reasons are not hard to understand. Emergencies result in loss of workspace, loss of technology, and loss of staff. In each instance, telework helps reduce the risk because it allows organizations to disperse employees quickly and to set up offices elsewhere. Besides allowing for the speedy resumption of business, teleworking helps in emergencies because it allows employees to remain in the pres- ence of their families, where they desire to be at such times. Organizations should take the following steps to ensure that telecommuting provides the help needed in emergencies.
- 137. 1. Keep company records, especially vital ones, on several backup servers. These should be geographically disbursed in the event that a disaster strikes a particular local area. 2. Ensure that workers have a list of locations where they can go to find access to electricity and the Internet. These should be both local and regional in nature. 3. Maintain databases of addresses, phone numbers, e-mail addresses, and emergency addresses (e.g., relatives living elsewhere) where everyone can be contacted. 4. Train all workers to be able to perform at least part of their jobs from distant locations, including how to use computers. 5. Keep training current and thorough. Just because someone once may have been computer-savvy does not ensure that he or she will continue to be so. Thorough training in distance collaboration and peer communication technology is key. 6. Emphasize the business necessity of such a plan so that everyone will take it seriously without being seen as alarmist. Following these measures, of course, will not ward off disas- ters. They remain a real and unforeseen risk for all organizations. However, by using telecommuting, businesses will be better pre- pared to cope with their inevitable aftermath. OB in Practice business continuity plans Systematic sets of plans designed to help organiza-
- 138. tions get up and running again in the event of a disruption of some sort. 54 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR and success. We also use the term engagement to refer to employers and employees who share similar commitments to one another. In the field of OB, engagement refers to a mutual commitment between employers and employees to do things to help one another achieve goals and aspirations.65 Thus, engagement is a two-way process. Typically, it works like this: Organizations take steps to engage their employ- ees, and employees, in turn, respond by engaging their organizations. This takes several forms, such as the following: � High levels of pride in the organization � Pride in the organizations’ products and services � Belief that the organization helps employees do their best � Willingness to help others on the job � Understanding “the big picture” and being willing to go beyond formal job requirements when necessary Because engagement begins with employers, it’s important to note what organizations can do to get the ball rolling. Organizations can do several specific things to promote feelings of engagement
- 139. in their employees. Not surprisingly, these are practices that we will be describing (and recommend- ing) in various places throughout this book. The four key drivers of engagement are as follows: � Involving employees in making decisions (see Chapter 10) � Giving employees opportunities to express their ideas and opinions (see Chapter 2) � Providing opportunities for employees to develop their jobs (see Chapter 7) � Showing concern for employees’ well-being as individuals (see Chapter 6) Considering this, we may ask, are today’s employees engaged in their jobs? An extensive survey by the Gallup Organization revealed that the answer varies for different groups of employees.66 Only 31 percent were classified as truly engaged. These individuals worked with passion and felt deep connections to their companies, helping to move them forward. The majority, however, 52 percent, were classified as not engaged. These people “checked out” of their jobs and only went through the motions. They put in time, but displayed very little energy or passion. Finally, 17 percent of the respondents were classified as being actively disengaged. Such individuals weren’t only unhappy, but acted out their unhappiness on the job. Far too often, they undermined the accomplishments of their highly engaged counterparts (e.g., by sabotaging their work). Generally, and this comes as no big surprise, people who are not engaged or who are actively disengaged do not enjoy their work experiences. At the same time, such individuals are
- 140. not helping—and actively are hurting—their organizations. This comes at considerable cost to organizations, not only by making life miserable for everyone, but also financially. Specifically, the Gallup Organization’s extensive, representative survey of U.S. workers age 18 and older revealed two disturbing findings (see summary in Figure 1.12): (1) The percentage of employees who are actively disengaged has not been dropping over the years, and (2) the cost of employing such individuals is dramatic—about $400 billion. As alarming as these figures may be, there is good news: They can be lowered! And, although it’s not always easy, the path to doing so is hardly a mystery. In fact, you hold the answer in your hands right now. Following the good management practices revealed by the field of organizational behavior is the key to promoting not only engagement, but a wealth of other beneficial outcomes both for organizations and the people who work in them. In Search of Flexibility: Responding to Needs of Employees Earlier, we mentioned that organizations are doing many different things to accommodate work- ers from two-income families, single-parent households, and people taking care of elderly rela- tives. Often, what’s most needed is not a formal program, but greater flexibility. The diversity of lifestyles demands a diversity of working arrangements. Some organizations have proven to be so flexible that they even accommodate employees taking care of their dogs. Although Fido might not be a common sight in today’s offices (even if, as some say, business has “gone to the
- 141. dogs”), several practices have gained in popularity in recent years that provide the flexibility today’s workers need. engagement A mutual commitment between employers and employees to do things to help one another achieve each other’s goals and aspirations. CHAPTER 1 • THE FIELD OF ORGANIZATIONAL BEHAVIOR 55 THE COMPRESSED WORKWEEK. The eight-hour/five-day workweek has been the traditional standard for many years. However, as employees have demanded more scheduling flexibility so as to have more personal time, companies have experimented with the compressed workweek, in which the time spent in a workweek is divided into fewer days. Three popular forms of the compressed workweek alternative schedule have been used (for a summary, see Figure 1.13).67 � Four-day workweek. Employees work 10 hours per day for four consecutive days, Monday through Thursday. The company is closed from Friday through Sunday. This gives employees three days off each week. � Three-day workweek. Two groups of employees are formed, each of which works for
- 142. three days of 13 hours and 20 minutes per day. One group works Monday through Wednesday, the other works Thursday through Saturday. The company is closed on Sunday. This gives employees four days off each week. � 5/4-9 compressed plan. Two groups of employees are formed. One works four 9-hour days plus one 8-hour day the first week. In week two, employees work four 9-hour days only. This order is reversed for the second group. The company is closed Saturday and Sunday. This arrangement gives employees two days off one week and three days off the next. These alternative scheduling arrangements have been enjoyed by employees interested in improving the balance between their work lives and personal lives. They also have received a great deal of attention as a means of reducing the number of commutes to and from work. As gasoline prices have risen in recent years, many city and state governments in the United States have adopted four-day workweeks.68 Not only does this reduce employees’ travel expenses by 20 percent, but keeping buildings closed an extra day also saves energy costs within the facilities. It is important to note, as you might imagine, that these alternative work schedules are not appropriate for all kinds of jobs. Obviously, such arrangements would not work in situations in which work must be performed only at certain times of day, such as when customers and suppli- ers are available to be contacted. Also, of course, we must
- 143. consider fatigue. People may grow so tired working longer-than-usual days that their performance and safety may suffer. Under such conditions, lengthened days do not make good business sense. Finally, it’s important to note that the benefit of improving balance between work and life schedules assumed to come from compressed workweek The practice of working fewer days each week, but longer hours each day (e.g., four 10-hour days). 2003 Cost range of lost productivity % of actively disengaged employees $323 to $417 billion 17% 20022001 Q1 2000 350 $400 billion 250
- 144. 300 200 2004 2005 25% 20 15 10 5 Q2 Q3 Q4Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 04 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FIGURE 1.12 The High Cost of Active Disengagement Employees who are actively disengaged at work comprise about 17 percent of the American workforce. These 23.3 million employees cost their organizations between $323 billion and $417 billion annually due to lost productivity. Source: Copyright © 2006 The Gallup Organization, Princeton, NJ. All rights reserved. Reprinted with permission. Visit the Gallup Management Journal at http://gmj.gallup.com. 5/4–9 COMPRESSED PLAN
- 145. 36 hrs worked week 1 80 hrs worked over 2 weeks 44 hrs worked week 2 off off off MON 9 hrs 9 hrs 9 hrs 9 hrs TUE WED THU FRI SAT SUN 9 hrs
- 146. 8 hrs 9 hrs 9 hrs 9 hrs off off GROUP A GROUP B WEEK 1 44 hrs worked week 1 80 hrs worked over 2 weeks 36 hrs worked week 2 MON 8 hrs 9 hrs 9 hrs 9 hrs 9 hrs TUE
- 147. WED THU FRI SAT SUN off off WEEK 2 9 hrs 9 hrs 9 hrs 9 hrs off off off FIGURE 1.13 The Compressed Workweek: Three Specific Schedules The compressed
- 148. workweek involves scheduling five standard days of work into four or fewer. Three particular schedules for accomplishing this, all used in various organizations, are summarized here. Source: Adapted from U.S. Office of Personnel Manage- ment, 2008, see Note 67. FOUR-DAY WORK WEEK THREE-DAY WORK WEEK off off off MON TUE WED THU FRI SAT
- 149. SUN 10 hours/day × 4 days = 40 hours/week off off off off MON TUE WED THU FRI SAT SUN 13 hrs, 20 min/day × 3 days = 40 hrs/week GROUP A 13 hrs,
- 150. 20 min/day × 3 days = 40 hrs/week off off off off GROUP B 56 CHAPTER 1 • THE FIELD OF ORGANIZATIONAL BEHAVIOR 57 compressed workweeks does not always occur. In particular, parents who have to pick up their children after school find it difficult to work too late into the day. All things considered, although compressed workweeks are useful in some cases, they certainly are not desirable in all. Still, it’s clear that they are not only a viable possibility, but a reality in many of today’s organizations—and one that has clear implications for the study of behavior in organizations. FLEXIBLE HOURS. If you take a look around your workplace, you’ll find people at different stages
- 151. of their lives. Some are single and just getting started in their careers, others may be raising fami- lies, and still others may have tried retirement but have chosen to return to work. These different individuals are likely to require different working hours. This has led contemporary organiza- tions to put programs into place that allow for flexibility. One popular way of doing this is by implementing what are known as flextime programs—policies that give employees some dis- cretion over when they can arrive at and leave work, thereby making it easier to adapt their work schedules to the demands of their personal lives. Typically, flextime programs require employees to work a common core of hours, such as 9:00 A.M. to 12 noon and 1:00 P.M. to 3:00 P.M. Scheduling of the remaining hours, within certain spans (such as 6:00 A.M. to 9:00 A.M. and 3:00 P.M. to 6:00 P.M.), is then left up to the employees. (This stands in contrast to compressed workweeks, which do not offer any such options.) Generally, such programs have been well received and have been linked to improve- ments in performance and job satisfaction, as well as drops in employee turnover and absen- teeism.69 In recent years, many companies, both large and small, have found that flexible work scheduling has helped their employees meet the demands of juggling their work and family lives.70 THE CONTINGENT WORKFORCE: “PERMANENT TEMPORARY” EMPLOYEES. Recognizing that not all jobs are required to be performed all the time, many organizations are eliminating
- 152. permanent jobs and hiring people to perform them whenever required. Such individuals comprise what has been referred to as the contingent workforce—people hired by organiza- tions temporarily, to work as needed for finite periods of time.71 This practice serves not only the needs of companies whose needs for employees grow and shrink over time and cannot afford to have full-time employees, but also individuals who are interested in work- ing only occasionally. The contingent workforce includes not only the traditional part- time employees, such as department store Santas, but also freelancers (i.e., independent contractors who are self-employed), on-call workers (i.e., people who are called into work only when needed), and workers provided by temporary help agencies. As companies have sought to trim expenses in recent years (e.g., by not having fixed office expenses and not giving severance pay to laid off employees), the number of contingent workers has risen dramatically. In 2010, about one in four members of the American workforce was a contingent worker.72 As shown in Figure 1.14, the specific jobs contingent workers do most frequently are in clerical fields.73 Such highly flexible arrangements make it possible for organizations to grow or shrink as needed, and to have access to experts with specialized knowledge when these are required. The current trend of trimming expenses has caused many companies to keep their staff sizes so small that they must frequently draw on the services of one of the nation’s thousands of
- 153. temporary-employment firms for help.74 As a result, growing numbers of professionals, includ- ing lawyers and scientists (many of whom are paid over $250,000 per year), are working on a part-time or freelance basis these days. One temporary employment firm keeps a roster of 1,000 executives who fill in at different companies where needed.75 These arrangements come at a cost to employees and employers, however. Contingent employees generally do not receive such valuable fringe benefits as health insurance and contri- butions to retirement. Salaries take a hit too. People who work half time, for example, typically earn less than half of those who work full time. Managers who earn $3,200 per month working full time can expect to earn as little as $800 to $1,200 per month working half time.76 On the other side of the coin, these figures represent considerable savings for companies. There is a downside to such arrangements for them as well. The lack of continuity and the time new employees spend “learning the ropes” only to leave shortly thereafter can put serious dents in contingent workforce People hired by organiza- tions temporarily, to work as needed for finite periods of time. flextime programs Policies that give employees some discretion over when they can arrive at and leave work, thereby making it
- 154. easier to adapt their work schedules to the demands of their personal lives. 58 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR Farming, forestry, fishing Operators, fabricators, laborers Precision production, craft, repair Services Administrative support and clerical Sales occupations Technicians and related support Professional specialty Executive, administrative, managerial 0 2 4 6 8 10 12 14 16 18 20 Percentage 3.0 15.1 12.2
- 155. 17.9 19.4 8.7 2.3 15.2 6.2 The largest percentage of contingent workers are employed in administrative support and clerical jobs FIGURE 1.14 Contingent Workers: What Kinds of Jobs Do They Do? As summarized here, contingent workers perform a wide variety of jobs. Most of these are in service businesses and in administrative support and clerical positions. Source: Based on data from the Bureau of Labor Statistics, 2009; see Note 73. efficiency. In short, contingent work arrangements have benefits and costs to all parties, and the opportunity to consider these trade-offs is a key characteristic of the contemporary workplace. IDIOSYNCRATIC WORK ARRANGEMENTS. Traditionally, when new employees were hired, they were
- 156. offered a standard set of benefits and working arrangements. People in various jobs were paid salaries and had work conditions that were predetermined based on their position. Of course, this still occurs most of the time. But, with increasing frequency, however, the arrangements between today’s employers and employees are being negotiated to satisfy the unique interests of each. Such arrangements are known as idiosyncratic work arrangements, or more simply, i-deals. These are uniquely customized agreements negotiated between individual employees and their employers with respect to employment terms benefiting each party. I-deals may take two forms. � Ex ante i-deals are negotiated before one begins a job, such as while negotiating the terms of employment (e.g., salary, fringe benefits, etc.). � Ex post i-deals are arrangements about employment terms made once a person already is working in an organization. Such arrangements are called i-deals because the deals are not only idiosyncratic in nature, but also reflect the fact that these arrangements are intended to be ideal for both employers and employees alike.77 (Unless both parties benefit, of course, i- deals may not be considered fair. Even when they do, however, such arrangements may seem unfair to existing workers. For a dis- cussion of this dynamic, see “The Ethics Angle” section on p. 59.) idiosyncratic work arrangements
- 157. (i-deals) Uniquely customized agree- ments negotiated between individual employees and their employers with respect to employment terms benefiting each party. CHAPTER 1 • THE FIELD OF ORGANIZATIONAL BEHAVIOR 59 JOB SHARING. Sometimes, two or more of employees assume the duties of a single job, splitting its responsibilities, salary, and some benefits in proportion to the time worked, a practice known as job sharing. Such arrangements are rapidly growing in popularity as people enjoy the kind of work that full-time jobs allow, but require the flexibility of part-time work. It’s not unusual for job sharing arrangements to be temporary, such as when people require time off for some personal reason for a fixed period of time. At Xerox, for example, several sets of employees share jobs, including two female employees who once were sales rivals, but who joined forces to share one job when they each faced the need to reduce their working hours so they could devote time to their new families.79 Pella (the Iowa-based manufacturer of windows) has found that job sharing is successful in reducing absenteeism among its production and clerical employees.80 Not surprisingly, job shar-
- 158. ing also can be effective in retaining employees who are looking for flexibility in their working hours and in attracting new employees for whom this is important. Offsetting some of these benefits, two key drawbacks should be noted. First, of course, job shar- ing does not lend itself to all types of jobs. Unless two people can handle the job as effectively as one, without any problems in coordination, the practice should be avoided. Second, because people sharing jobs may not be counted as full-time employees, important fringe benefits (e.g., eligibility for health insurance) might not be available to them. As a result, although job sharing may be a useful option for many, it is not always a perfect solution to the need for flexibility. VOLUNTARY REDUCED WORK TIME (V-TIME) PROGRAMS. Programs known as voluntary reduced work time (V-time) programs allow employees to reduce the amount of time they work by a certain amount (typically 10 or 20 percent), with a proportional reduction in pay. Over the past few years, these programs have become popular in various state agencies in the United voluntary reduced work time (V-time) programs Programs that allow employ- ees to reduce the amount of time they work by a certain amount (typically 10 or 20 percent), with a proportional reduction in pay.
- 159. The Ethics Angle Are I-Deals Unfair? By their nature, i-deals involve treating people differently. Suppose, for example, a law firm hires a highly regarded attor- ney who, for personal reasons (e.g., having to take children to school), is allowed to come to the office at 9:30 A.M., an hour after everyone else. Isn’t this a form of favoritism, you may ask, because it treats one employee better than others? Maybe, but not necessarily. To be an i-deal, such arrange- ments must help everyone. Admittedly, the arrangement might place a burden on paralegals (and possibly other attorneys) who may be called on to address pressing issues on the newly hired attorney’s cases while he or she is away from the office. Still, the firm’s partners might agree to the i-deal anyway on the grounds that over the long term everyone would benefit from the arrangement. The newly hired attorney benefits, of course, by being given hours that accommodate his or her per- sonal needs. The firm benefits by allowing it to have the expert skills of this individual to service clients, such as by allowing it to broaden the range of cases it handles. Finally, because this individual is so highly regarded, other attorneys in the firm also stand to benefit. This new attorney’s reputation may be expected to help attract new business that allows other attor- neys to work on cases that are more desirable and/or lucrative. And of course, there’s also the gain in prestige that comes from having this person on board. The spotlight on this highly regarded attorney stands to put a glow on everyone, thereby enhancing their own reputations (“She’s in the same firm as X, so she must be pretty good”). As a result, everyone stands to benefit.
- 160. Although the i-deal need not be a cause for worry among the new person’s colleagues, it still might arouse their concerns because they don’t fully understand what’s going on.78 As you might imagine, when this special new attorney is initially hired, his or her colleagues are likely to suspect that this individual is being given favorable treatment. This makes sence since i-deals tend to be arranged in one-on-one discussions between employees (pres- ent or future) and one or more company officials. It’s no wonder that employees may be suspicious about under-the-table deals made behind closed doors. So, given that the arrangement is meant to be beneficial to everyone, it’s essential for both man- agers and the beneficiaries of the i-deals to explain this thoroughly to other employees, who are unlikely to be aware of this. Managers need to make it clear precisely why they agreed to such nonstandard employment terms in the first place, explaining thoroughly how the arrangement stands to benefit everyone. They also should explain any special arrangements being made to minimize any possible burdens placed on other employees due to the i-deal (e.g., rescheduling paralegals). In other words, managers should help employees understand the personal benefits being realized and the personal costs being minimized that makes the i-deal work for all. At the same time, the beneficiaries of i-deals should be care- ful about what they say. The fact that they are receiving special treatment is likely to make their colleagues feel jealous (if not also suspicious and insecure). Because of this, it’s essential for recipients of i-deals to avoid bragging about their arrangements. They also should go out of their way to help their colleagues,
- 161. making it clear that they are not prima donnas and that they still can be counted on to be good citizens of their companies. job sharing A form of regular part-time work in which two or more employees assume the duties of a single job, splitting its responsibilities, salary, and benefits in pro- portion to the time worked. 60 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR Summary and Review of Learning Objectives 1. Define the concepts of organization and organizational behavior. An organization is a structured social system consisting of groups and individuals working together to meet some agreed-upon objectives. Organizational behavior is the field that seeks knowledge of behavior in organizational settings by systematically studying individ- ual, group, and organizational processes. 2. Describe the field of organizational behavior’s commitment to the scientific method and the three levels of analysis it uses. The field of OB seeks to develop a base of knowledge about behavior in organizations by using an empirical, research-based approach. As such, it is based on systematic observation
- 162. and measurement of the behavior or phenomenon of interest. The field of OB uses three levels of analysis—individuals, work groups, and entire organizations—all relying on the scientific method. 3. Trace the historical developments and schools of thought leading up to the field of organizational behavior today. The earliest approaches to organizational behavior relied on scientific management, an approach that essentially treated people like machines, emphasizing what it took to get the most out of them. For example, this approach relied on time- and-motion study, a type of applied research designed to find the most efficient way for people to perform their jobs. As this approach grew unpopular, it was supplanted by the human relations movement, which emphasized the importance of noneconomic, social forces in the workplace—an approach that remains popular to this day. Such factors were demonstrated in the Hawthorne studies, the first large-scale research project conducted in a work organization that demonstrated the importance of social forces in determining productivity. In contrast with scientific man- agement’s orientation toward organizing the work of individuals, proponents of classical organizational theory developed ways of efficiently structuring the way work is done. Weber’s concept of bureaucracy is a prime example of this approach. Contemporary OB is characterized not by one best approach to management, but by systematic scientific research inspired from several social science disciplines. It
- 163. takes a contingency approach to OB, recognizing that behavior may be influenced by a variety of different forces at once, thereby rejecting the idea that there is any single most effective approach to managing behavior in organizations. 4. Identify the fundamental assumptions of the field of organizational behavior. The field of OB assumes: (1) that organizations can be made more productive while also improving the quality of people’s work life, (2) that there is no one best approach to studying behavior in organizations, and (3) that organizations are dynamic and ever-changing. 5. Describe how the field of organizational behavior today is being shaped by the global econ- omy, increasing racial and ethnic diversity in the workforce, and advances in technology. The world’s economy is becoming increasingly global, a trend that is affecting the field of OB in several distinct ways. For example, organizations are expanding overseas, requiring people to live and work in different countries, requiring considerable adjustment. As this occurs, much of what we thought we knew about managing people is proven to be limited by the culture in which that knowledge was developed (U.S. culture, in most cases). Racial and ethnic diversity in the workplace is in large part the result of shifting patterns of immigration that have brought more foreign nationals into the workforce. It also is the result of changes in social values and the economy that have made the presence of women common in today’s workplace. Also, thanks to
- 164. modern medicine, people are living longer, hence retiring from work later than ever before. Because technology has made it possible for fewer people to do more work, many organizations States. For example, various employees of the New York State government have enjoyed having professional careers, but with hours that make it possible for them to also meet their family obli- gations. Not only does the state benefit from the money saved, but the employees also enjoy the extra time they gain for nonwork pursuits. CHAPTER 1 • THE FIELD OF ORGANIZATIONAL BEHAVIOR 61 Points to Ponder Questions for Review 1. How can the field of organizational behavior con- tribute to both the effective functioning of organiza- tions and to the well-being of individuals? Are these goals inconsistent? Why or why not? 2. What is the “contingency approach,” and why is it so popular in the field of OB today? 3. Explain how the field of organizational behavior stands to benefit by taking a global perspective. What would you say are the major challenges associated with such a perspective? 4. How has the growing quest for quality products and
- 165. services affected your own work? Experiential Questions 1. Think about a person with whom you may have worked who happens to be very different from you, such as someone of the opposite sex who also is a member of a different racial group and/or from a different country. In what ways was this experience challenging for you? In what ways did these differences prove to be beneficial? What insight do you believe the field of OB can give you with respect to this experience? 2. How have your own life and the lives of your family members changed because of flexible new working arrangements that have become popular in recent years? 3. Describe some ways in which you may have been treated by your boss that helped you become an engaged employee, a not-engaged employee, or an actively disengaged employee. How did you respond as a result? Questions to Analyze 1. Although only some people in an organization need to know about marketing or accounting or production, almost everyone benefits by knowing about organiza- tional behavior. Do you agree with this statement? If not, why not? If so, exactly how can knowing OB help you in your own work? 2. The practice of engineering is constantly evolving, but the basic rules of physics on which it rests remain relatively unchanged. Do you think the same relation-
- 166. ship exists between technology and OB? In other words, do the things that have made organizations and individuals successful in yesterday’s low-tech era remain relevant today, or are they changing along with technology? 3. Although many employees enjoy the flexibility of working lots of part-time jobs or working for a series of employees on a temporary basis, it comes at a cost: Such employees often make low wages, have little security, and cannot count on having fringe benefits. How do you think this trend affects organizations? How are companies helped and how are they harmed by this trend? Do you think this trend has any adverse effects on a company’s products? Experiencing OB Individual Exercise How Much Do You Really Know About OB? Because we’ve all done some kind of work and know other people who also work, it’s not sur- prising that we assume various things about how people behave on the job. After all, it’s some- thing we experience all the time. However, the things we may believe to be true about behavior in organizations based on common sense or experience may be inconsistent with established have been growing smaller, downsizing. Furthermore, as technology becomes increasingly spe- cialized, organizations have found it useful to hire other companies to do nonessential aspects of their operations that they once performed themselves—a process known as outsourcing.
- 167. 6. Explain how people’s changing expectations about the desire to be engaged in their work and the need for flexibility in work have influenced the field of organizational behavior. Both employers and employees benefit when they are highly engaged with one another— that is, when they are highly committed to satisfying one another’s interests. This drives organizations to follow various OB practices so as to avoid the extremely high costs of hav- ing actively disengaged workers. Today’s employees also desire to have a high degree of flexibility in their work arrangements. This takes several forms: using idiosyncratic work arrangements, offering flexible hours, relying on contingent workers, using compressed workweeks, job sharing, and voluntary reduced work time programs. 62 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR research findings (many of which are noted in this book). Also, the things we think we know are unlikely to reflect all the complexities and subtle nuances of human behavior that only scientists are prepared to determine. This exercise will help you get a feel for this. Directions Answer each of the following questions by marking it either true or false. Please indicate what you really think and not what you suspect “the real” answer may be.
- 168. 1. People who are satisfied with one job tend to be satisfied with other jobs too. 2. “Two heads are better than one,” so groups make better decisions than individuals. 3. The best leaders always act the same, regardless of the situations they face. 4. Specific goals make people nervous; people work better when asked to do their best. 5. People get bored easily, leading them to welcome organizational change. 6. Money is the best motivator. 7. Today’s organizations are more rigidly structured than ever before. 8. People generally shy away from challenges on the job. 9. Multiple channels of communication (e.g., written and spoken) tend to add confusion. 10. Conflict in organizations is always highly disruptive. Scoring Now, the moment of truth: The first statement is true; all the others are false. Give yourself one point for each question you answered correctly. Please note that when we refer to something as being “true,” we mean that it has been supported by research. Here is where in this book you’ll find information relevant to these statements: Question 1, Chapter 6; Question 2, Chapter 10; Question 3, Chapter 13; Question 4, Chapter 7; Question 5, Chapter 16; Question 6, Chapter 7; Question 7,
- 169. Chapter 15; Question 8, Chapter 7; Question 9, Chapter 9; Question 10, Chapter 11. Questions for Discussion 1. How did you score on this quiz? If you answered honestly, you probably didn’t get them all correct. If so, don’t be surprised. We’re not. After all, many of the things people routinely believe about behavior in organizations are only partially true— that is, true under some conditions, but not always. In other words, this topic tends to be far more complex and nuanced than meets the eye. This is precisely why when it comes to studying OB we cannot rely on our common sense as a guide. Instead, we rely on scientific research (see Appendix 1 for a summary of how such research is conducted). 2. Are you surprised to learn of any of the answers we present as being correct? If so, keep in mind that although it’s certainly not always perfect, the fact that research is carefully designed to describe and explain behavior in an unbiased fashion enhances our confidence in what it reveals. Indeed, OB is a science, and as such, the things we know about it are based not on what we think or hope or believe to be the case, but rather, on what research reveals. So, as you read this book you can be assured that the things we say are based on the results of careful scientific investigation—even (or especially) if it’s not what you’d expect. 3. How did you score relative to your classmates? It may be
- 170. interesting to see exactly what questions stumped the most people in your class. Then, you can look forward to learning about the topic associated with it later in this book. Group Exercise Is Your Team Ready for Telecommuting? What happens when people who might ordinarily come into contact with one another on their jobs no longer have that social contact? Several things may happen. For example, when employ- ees do not see each other on a regular basis, it is difficult to build the team spirit that is needed to establish quality goods and services in some organizations. As a result, telecommuting does not CHAPTER 1 • THE FIELD OF ORGANIZATIONAL BEHAVIOR 63 lend itself to all jobs and to all individuals. This exercise will help you determine if you and members of your work team are ready for telecommuting. Directions Working independently, each member of a work team should complete the following question- naire by indicating the extent to which each statement describes his or her own characteristics or current job situation. 1 � not at all 2 � slightly
- 171. 3 � moderately 4 � somewhat 5 � greatly Scale To what extent . . . 1. Does your job allow you to work independently of others? 2. Is it important for you to see the people with whom you work face-to-face? 3. Are you able to complete jobs without being watched closely? 4. Are you comfortable using computers and high-tech equipment? 5. Is your company able to train you to use technology to do your job? 6. Are you able to manage your own time effectively? 7. Are you capable of finding a safe, secure, and nondistracting place to work? 8. Does your job performance depend on measurable aspects of your individual performance? 9. Would you miss the socializing that goes on in the office if you were away from it? 10. Is it possible for you to have access to the equipment and supplies needed to do your job while away from the office? Scoring and Interpretation 1. Add together your scores for items 1, 3, 4, 5, 6, 7, 8, and 10. 2. Add together your scores for items 2 and 9. Subtract this sum from 12.
- 172. 3. Add together the number from step 1 and the number from step 2. You will get a number from 10 to 50. This is your individual score. 4. Higher scores reflect higher degrees of individual readiness for telecommuting. Scores of 15 or lower reflect low degrees of readiness. Scores of 35 or higher reflect high degrees of readiness. 5. Add together the individual scores from all the members of your team. Then divide this number by the number of people in your team. This is your team’s average readiness for telecommuting score. 6. Higher scores in step 5 reflect higher degrees of team readiness for telecommuting. Scores of 15 or lower reflect low degrees of team readiness. Scores of 35 or higher reflect high degrees of team readiness. Questions for Discussion 1. In scoring the scale responses, why do you think questions 2 and 9 were treated differently from the others? How are they different? 2. Does your individual score (step 4) suggest that you are ready for telecommuting? Do you do so already? Might it be possible to telecommute some of the time if you are not doing so already? 3. Does your team score (step 6) suggest that your team is ready
- 173. for telecommuting? Do some members of the team engage in telecommuting already? If so, how are the other members of the work team affected by this? If not, why do you think this is not already going on? 64 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR C as e in P oi n t ■ Floyd’s Barbershop: A Cut Above the Rest In 2001, when the O’Brien brothers, Paul, Ron, and Bill, opened Floyd’s 99 Barbershop in Denver, their only experi- ence in the hair care business was as customers. Lacking tonsorial training, their particular skills, it seems, laid not in grooming hair but grooming loyal, creative, and hard- working employees. Floyd’s, named after the iconic barber from television’s classic Andy Griffith Show, was conceived to be a friendly neighborhood place like the one owned by its namesake. But that’s where the similarity ends. In the O’Briens’ vision, Floyd’s was not your father’s traditional barbershop, nor
- 174. was it a plush, unisex salon that smelled like hair chemicals. Instead, Floyd’s was designed to be a hip and lively place for contemporary men. In many locations—there are now 27 Floyd’s 99 Barbershops in six states—popular music is heard (played by live DJs on Saturdays), posters of rock stars adorn the walls, and sporting events are shown on plasma TV screens. The place is so hip that the Floyd’s shop in Hollywood, California, was a location for an episode of the HBO series Entourage. It’s no wonder that Bill O’Brien refers to Floyd’s as “Hard Rock meets the barbershop.” Stylists at Floyd’s know all the latest, contemporary cuts but also include old-fashioned services such as neck shaves with each haircut, and at reasonable prices (“less than twice the price of lunch” according to Rob O’Brien). Because it’s impractical for today’s highly mobile young men to commit to making appointments for haircuts, Floyd’s doesn’t take them. Yet, acknowledging the importance of timely service, customers can phone-in their place in line an hour or so ahead of arriving. But for anyone who does have to wait for his favorite barber (whose working hours be can checked online), it’s not so bad because pool tables and computers with Internet access are available to help pass the time. Not only are the O’Brien brothers attuned to what their customers want, they also are keenly sensitive to their employees. Illustrating this, consider how the O’Briens responded in March 2003 when a blizzard struck Denver. When the nightclub next door collapsed onto their shop, managers pleaded with firemen to rummage through the mounds of debris to retrieve their employees’ tools and per- sonal belongings. Unfortunately, the building housing Floyd’s had to be demolished due to structural damage, leading to concerns about the business’s future. Although the building was broken, the O’Briens’ spirit was not
- 175. broken—and employees came to appreciate this. Until a new shop could be built, complete with chrome and leather chairs and a barber pole out front, current employees were absorbed into other Floyd’s locations and nobody lost a job. In fact, a billboard and the company’s Web site made light of the events, adding to the belief that all would be well. Although the O’Briens don’t know how to cut hair, they surely know how to trim through layers of uncertainty to assuage their employees’ fears. Employees and industry pundits would be hard pressed to challenge Bill’s wife, Karen, who said that at Floyd’s, “The founders’ passion, personalities, and their constant desire to make a positive impact on people, along with the support of a qualified and professional management team, have poised the com- pany for national and international expansion.” Questions for Discussion 1. Would you say that the O’Briens have adopted a Theory X or Theory Y approach to the management of their employees? On what do you base your answer? 2. Do the O’Briens appear to be doing anything to increase the feelings of engagement among their employees? If so, what are they? If not, what might they do? 3. How might Floyd’s Barbershop: (a) use technology to enhance its business, and (b) respond to the need for flexibility among its employees? Practicing OB When in Rome You are the regional director of a large U.S.-based import-
- 176. export company that is expanding international operations. This requires three of your top managers to move to Rome, Italy, for no less than two years, maybe longer. Given their lengthy stay, they will be moving their families along with them and setting up new households. 1. What problems would you anticipate these executives will have as they adjust to their new surroundings? 2. What specific measures could be taken to help these individuals avoid the symptoms of culture shock that are likely to arise? 3. What difficulties might these individuals have when they return to their own country at the end of their assignments? What could be done to minimize these problems? Chapter Outline � Organizational Justice: Fairness Matters � Strategies for Promoting Organizational Justice � Ethical Behavior in Organizations: Its Fundamental Nature � Why Do Some People Behave Unethically, at Least Sometimes—and What Can Be Done About It? � Using Corporate Ethics Programs to Promote Ethical Behavior � Ethics in the International Arena
- 177. � Beyond Ethics: Corporate Social Responsibility Learning Objectives After reading this chapter, you should be able to: 1. Identify four different forms of organizational justice and the organizational impact of each. 2. Describe strategies that can be used to promote organizational justice. 3. Explain what is meant by ethical behavior and describe its relation to the law. 4. Describe the individual and situational factors responsible for unethical behavior in organizations and methods for minimizing such behavior. 5. Explain ways of behaving ethically when conducting business internationally. 6. Explain what is meant by corporate social responsibility, describe the forms it takes, and characterize the relationship between responsible behavior and financial profitability. 2CHAPTE R Organizational Justice, Ethics, and Corporate Social Responsibility 65
- 178. Preview Case ■ A Huge Day’s Pay for a Seriously Bad Day’s Work For many years, banks and financial institutions had agood thing going—or so it seemed. They issued vari- able-rate mortgages to people with low income and poor credit, later packaging and reselling these “sub- prime” loans to unknowing investors as mortgage- backed securities. The profits were enormous, rewarding bank executives with salaries, bonuses, and stock options in the tens, if not hundreds, of millions of dollars. Despite alerts from some economists, greed apparently blinded the bankers. They convinced themselves that they could keep this up forever because home values would continue to rise, allowing consumers to refinance their loans. The bankers were wrong. In fall 2008, many of the variable interest loans, with their initially low interest rates, which got borrowers in the door (literally), rose to levels that home owners could no longer afford, and they began defaulting. This led the value of the securities to nosedive, and soon the walls came tum- bling down. Banks were losing money even faster than they had been making it, leading them to the brink of failure. Recognizing that keeping the banks afloat was essen- tial to preventing a major collapse of the financial system and a “Second Great Depression,” the U.S. government intervened by launching the Troubled Asset Relief Program (TARP). Through this initiative, the Treasury Department was able to purchase some $23 trillion in
- 179. “troubled” assets and equity (e.g., losses stemming from home foreclosures) from financial institutions in an effort to stabilize them. As they regained health, the banks were to repay the government. Although banks were being kept afloat by govern- ment bailouts, many executives continued to receive the same large paychecks that they were receiving before they took TARP funds. Some banks were spending millions of taxpayer dollars on bonuses for the very executives whose poor judgment created the problem in the first place. Instead of being forced to resign in disgrace for causing such serious problems, these top officials were, in essence, being rewarded by their victims, the American people. Among the most egregious abusers was the large insurance company AIG. This firm’s officials begged the government for a bailout and received $182.5 billion in return. Then, it used part of this money to pay tens of millions of dollars to its top executives. In March 2009, President Obama expressed his indignation. “People are rightly outraged about these particular bonuses,” he said, adding, “But just as outrageous is the culture that these bonuses are a symptom of, that have existed for far too long—a situation where excess greed, excess compensation, excess risk-taking have all made us vulnerable and left us holding the bag.” Following the President’s criticism, many AIG execu- tives were shamed into returning their bonuses, although several explained that their particular work had nothing to do with the subprime mortgage crisis and that they deserved their bonuses. It also was explained that unless executives were rewarded with generous bonuses, they would go elsewhere, leaving these companies without competent leaders to get them out of trouble. Some
- 180. agreed but others countered that the departure of the individuals who got into this mess would not be such a great loss. From an economic and political standpoint, the situation with AIG is far more complex than depicted in this case. However, from the perspective of OB, the principle involved appears rather straightforward. “A fair day’s work for a fair day’s wages” is a cherished value in the workplace. Those who do well deserve to be rewarded for their accomplishments, but those who fail do not deserve to benefit. It sounds simple enough, at least in principle. However, the AIG scandal seems to suggest that when it comes to bank or insurance executives, different rules apply. And as President Obama suggested in no uncertain terms, this is unacceptable. It’s clear that people get upset when someone doesn’t do the “right thing,” although reason- able people don’t always agree on precisely what this entails. Given that great philosophers over the years haven’t reached consensus about what constitutes appropriate behavior, we shouldn’t be too surprised that distinguishing between right and wrong in the workplace can be a complex undertaking.1 Yet, it’s clear from many of the cases that have been in the news at the beginning of the twenty-first century—the Enron scandal and the Bernard Madoff scandal being the most visible—that most people have a good sense of wrongdoing when they see it.2 Still, whether it’s cheating among athletes and sports officials, illicit behavior among politicians, or unabashed greed among corporate officers, recent headlines make it clear
- 181. that people in organizations seem to face an unending array of ethical obstacles.3 Not surprisingly, as we will describe in this 66 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR CHAPTER 2 • ORGANIZATIONAL JUSTICE, ETHICS, AND CORPORATE SOCIAL RESPONSIBILITY 67 chapter, the topic of business ethics is central to the study of OB. Specifically, OB provides a great deal of insight into why unethical behavior occurs and offers suggestions on how to curtail it. As a natural outgrowth of the quest to behave ethically, many organizational leaders are going beyond merely doing what’s right by proactively attempting to improve the communities in which they operate.4 Indeed, many of today’s organizations are demonstrating what is known as corporate social responsibility—not only attempting to meet prevailing legal and ethical stan- dards but also exceeding them by embracing values that promote the greater welfare of society at large. Whether it involves donating money to charities, staffing community welfare projects, or taking steps to make our air and water clean, engaging in socially responsible behavior is of great concern to leaders of today’s organizations. Here again, OB specialists have sought to explain this behavior, and their efforts will be outlined in this chapter. Before focusing on ethics and corporate social responsibility,
- 182. we begin this chapter by dis- cussing a key concept that is central to understanding these themes—organizational justice.5 People care a great deal about matters of justice on the job. Just ask any worker who feels that the small pay raise he received does not adequately reflect his important contributions, or someone who suspects that the boss is playing favorites by giving one of her coworkers more desirable work assignments. Workers in these cases are bound to cry foul, claiming that they have been treated unfairly. As these illustrations suggest, people are extremely sensitive to matters of justice and injustice in the workplace and are inclined to express their feelings in significant ways. Not surpris- ingly, when people are asked to describe what makes them angriest on the job, “being treated unfairly” tops the list.6 Because of its importance, OB scientists have devoted a great deal of atten- tion to studying organizational justice—the topic to which we now turn our attention. Organizational Justice: Fairness Matters Suppose you received a failing grade in a course. You don’t like it, of course, but can you say that the grade is unfair? To answer this question, you would likely take several things into considera- tion. For example, does the grade accurately reflect how well you performed in the course? Were your exam scores added accurately and were they computed in an unbiased fashion? Has the pro- fessor treated you in a polite and professional fashion when addressing you? Finally, has the professor explained the grading process to you adequately? In judging how fairly you have been
- 183. treated, questions such as these are likely to be raised—and your answers are likely to have a considerable impact on how you feel about your grade, the professor, and even the school as a whole. Moreover, they are likely to have a profound effect on how you respond, such as whether you quietly accept the grade, complain about it to someone, or even quit school entirely. Although this example involves you as a student, the same considerations arise in the work- place. In that context, instead of talking about grades from professors, concerns about justice take analogous forms. Does your salary reflect your work accomplishments? How was your perform- ance evaluation determined? Were you treated with dignity and respect by your boss? Were you given important job information in a thorough and timely manner? Matters such as these are rele- vant to organizational justice—the study of people’s perceptions of fairness in organizations. Our discussion of organizational justice focuses on three key areas—the major forms of organizational justice, the relationships between these forms, and suggestions for promoting jus- tice in organizations. Before we launch into our discussion of organizational justice, there are two important things about it you need to consider. Two Important Points to Keep in Mind Unlike philosophers, who attempt to make objective statements about what justice really is, OB scientists generally adopt the approach of psychologists, which focuses on how justice is perceived. After all, people respond to how they perceive
- 184. things, which may or may not be based on objective truths. You will come to appreciate this more fully as you venture further into this book (and as we will explain in more detail in Chapter 3). For now, though, it’s important to be aware that we are talking about people’s perceptions. Another thing to keep in mind about organizational justice is that it takes into account the particular focus or target of people’s perceptions. So, when we speak about organizational justice, we must ask: to whom or what are judgments focused? For example, people may consider the organizational justice The study of people’s perceptions of fairness in organizations. 68 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR Satisfaction with outcomes (e.g., pay, work assignments) Adherence to the rules Fe el in g po
- 186. Feeling valued by others in the organization Procedural justice Distributive justice Organizational justice FIGURE 2.1 Forms of Organizational Justice and Their Effects Organizational justice takes the four different forms identified here. Each of these forms of justice has been found to have different effects in organizations. Source: Based on information in Greenberg, 2010; see Note 5. fairness of both individuals (e.g., specific managers) and larger units (e.g., their organizations as a whole), which may or may not be aligned. The notion that people may take into account different foci when assessing fairness is known as the multifoci approach to justice.7
- 187. Now that we’ve made these points explicit, let’s begin. Our discussion of organizational justice will focus on three important considerations—the major forms of organizational justice, the relationships between these forms, and tips for promoting justice in organizations. Forms of Organizational Justice and Their Effects The complexity of the notion of organizational justice is reflected by the vast array of questions to which it is applicable. For example, justice is considered in everything from how decisions are made about who will make the office coffee and how much you get paid, to how well you are treated by your boss. Considering its complexity, OB scientists have recognized that organiza- tional justice takes several different forms. These are known as distributive justice, procedural justice, interpersonal justice, and informational justice (for an overview, see Figure 2.1).8 DISTRIBUTIVE JUSTICE. On the job, people are concerned with getting their “fair share” of resources. We all want to be paid fairly for the work we do, and we want to be adequately recog- nized for our efforts and any special contributions we bring to the job. Distributive justice is the form of organizational justice that focuses on people’s beliefs that they have received fair amounts of valued work-related outcomes (e.g., pay, recognition, etc.). For example, workers in most Western nations believe that fairness demands getting paid in proportion to job performance, with better performers making more than poor performers. This is in keeping with the notion of “a fair day’s wages for a fair day’s work”—a cherished value in the
- 188. United States. (It is the apparent violation of this principle by AIG executives—as described in this chapter’s Preview Case on page 66—that triggered cries of injustice by President Obama and many others.) People who believe that they have been dealt a distributive injustice on the job tend to experience high levels of stress (see Chapter 5) and also feel dissatisfied with their jobs and the com- panies in which they work. (Related to this, as you will see in the discussion of equity theory in Chapter 7, feelings of distributive justice can have a great impact on people’s motivation to perform their jobs.) As an example of distributive injustice consider a situation that’s been discussed in the press a great deal in recent years—the distribution of health- care services and costs. It has been multifoci approach to justice A conceptualization of organizational justice recognizing that people take into account both individuals and larger units when assessing fairness. distributive justice The form of organizational justice that focuses on people’s beliefs that they have received fair amounts of valued work-related outcomes (e.g., pay,
- 189. recognition, etc.). CHAPTER 2 • ORGANIZATIONAL JUSTICE, ETHICS, AND CORPORATE SOCIAL RESPONSIBILITY 69 TABLE 2.1 Procedural Justice Criteria In forming judgments of procedural justice, people take different factors into consideration. Some of the major ones are identified here, along with descriptions and examples of each. Criterion Description Example • Voice in the making of decisions Perceptions of procedural justice are enhanced to the extent that people are given a say in the decisions affecting them. Workers are given an opportunity to explain their feelings about their work to a supervisor who is evaluating their performance. • Consistency in applying rules To be fair, the rules used as the basis for making a decision about one person must be applied equally to making a decision about someone else. A professor must use the same exact standards in
- 190. evaluating the term papers of each student in the class. • Accuracy in use of information Fair decisions must be based on information that is accurate. A manager calculating the amount of overtime pay a worker is to receive must add the numbers accurately. • Opportunity to correct errors Fair procedures are ones in which people have a readily available opportunity to correct any mistakes that have been made Litigants have an opportunity to have a judge’s decision reconsidered in the event that an error was made in legal proceedings. • Safeguards against bias A person making a decision must not have any opportunity to bias the results. Lottery drawings are held in such a manner that each number is selected in a completely random, unbiased fashion. Source: Based on information in Greenberg, 2010; see Note 5. argued that one key problem with the health-care system in the
- 191. United States is that people in lower- paying jobs pay proportionately more for their health insurance on an out-of-pocket basis, and use it less, than individuals in higher-paying jobs.9 Whatever the reasons for this—and the way to fix it— may be (a complex topic that lies far beyond the scope of this book), it’s clear that people seek a health-care system that is fair and, among other things, this requires not putting most of the burden on those who are least able to carry it. PROCEDURAL JUSTICE. Assuming it’s not too painful to do so, recall our example (on page 67) involving receipt of a failing grade. In assessing the fairness of this situation, you would want to know precisely how your grade was determined. After all, if the professor made an error in calcu- lating your grade, it would be unfair for you to be penalized. In other words, fairness involves consideration of not only how much of various outcomes you receive (i.e., distributive justice) but also the process by which those outcomes are determined—that is, procedural justice. Specifically, procedural justice refers to people’s perceptions of the fairness of the procedures used to deter- mine the outcomes they receive.10 When people judge procedural justice, they take into account a variety of different criteria. Among the most widely used are summarized in Table 2.1. Let’s consider an illustration. In the spring of 1998, New York City cab drivers went on strike to protest then–Mayor Giuliani’s imposition of new safety rules.11 As it worked out, the drivers had few gripes with the rules themselves. However, they felt it was unfair for the mayor to
- 192. impose the rules without consulting them. In their eyes, fairness demanded having a voice in the decision-making process, and when they didn’t get it they expressed their concerns by striking. How easily this could have been avoided! Clearly, giving people a voice is a major consideration when it comes to procedural justice, which is why it heads the list of criteria shown in Table 2.1. Concerns about procedural justice are likely to take different forms in various settings. Consider these examples.12 � Formal performance appraisals—Workers consider their job performance ratings to be fair to the extent that certain procedures are followed, such as when raters are believed to be familiar with their work and when they believe that the standards used to judge them are applied to everyone equally and consistently (for an example, see Figure 2.2).13 � Classroom—As a student, you want to make sure your professor uses fair procedures when grading your exams, such as by applying the same criteria to everyone’s exams while grading essays and by not making any arithmetic errors when scoring exams. � Courtroom—In the United States, laws require that evidence be ignored in court if it has been mishandled or if the police violated established rules to gather it. Likewise, entire cases may be thrown out if certain procedural rules have been violated.
- 193. procedural justice People’s perceptions of the fairness of the procedures used to determine the outcomes they receive. 70 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR FIGURE 2.2 Performance Appraisals Are Now Sweeter at Jelly Belly The family-owned Jelly Belly Candy Company, headquartered in Fairfield, California, has long been considered a fun place to work. The fun ended, however, when it came to formal performance appraisals. Workers complained that the system was unfair because different procedures were used throughout the company. Although there weren’t quite as many procedures as the number of different flavors made, 50, the company’s 600 employees were unclear about what was expected of them. This led the company to adopt a sweet new performance appraisal system that could be used for all employees in all three company locations. Shortly afterward, according to HR director Margie Poulos, staff members characterized the new, standardized system as “fair and realistic,” a vast improvement over the former ad hoc systems that started from scratch each year. � Professional football—To ensure that referees’ calls are correct, the National Football League allows referees to review via videotape plays in which
- 194. coaches believe that referees may have made an error. It is important to note that following unfair procedures not only makes people dissatisfied with their outcomes (as in the case of distributive justice), but also leads them to reject the entire system as unfair.14 Additionally, procedural justice affects people’s tendencies to follow organizational rules: Workers are not inclined to follow an organization’s rules when they have reason to believe that its procedures are inherently unfair. And, of course, when this occurs, serious problems are likely to arise. Accordingly, everyone in an organization—especially top officials—would be well advised to adhere to the criteria for promoting procedural justice summarized in Table 2.1. Je ff G re en be rg /A la m y Im
- 195. ag es . CHAPTER 2 • ORGANIZATIONAL JUSTICE, ETHICS, AND CORPORATE SOCIAL RESPONSIBILITY 71 INTERPERSONAL JUSTICE. Imagine that you were just laid off from your job. You’re not happy about it, of course, but suppose that your boss explains this situation to you in a manner that takes some of the sting out of it. Although your boss cannot do anything about this high-level corporate decision, he or she is very sensitive to the harm this causes you and expresses concern for you in a highly sensitive and caring manner. Research has shown that people experiencing situations such as this tend to accept their layoffs as being fair and hold positive feelings about their supervisors (see Figure 2.1). Importantly, such individuals are less inclined to sue their former companies on the grounds of wrongful termination than those who believe they were treated in an opposite manner—that is, an insensitive and disrespectful fashion.15 The type of justice demonstrated in this example is known as interpersonal justice. This refers to people’s perceptions of the fairness of the manner in which they are treated by others (typically, authority figures). You may be wondering what treating people with dignity and respect
- 196. has to do with fairness. The answer is simple: People believe that they deserve to be treated in such a manner and that it is unfair for this not to happen. INFORMATIONAL JUSTICE. Imagine that you are a heavy smoker of cigarettes and learn that your com- pany has just imposed a smoking ban. Although you may recognize that it’s the right thing to do, you are unhappy about it because the ruling forces you to change your behavior and break an addictive habit. Will you accept the smoking ban as fair and do your best to go along with it? Research suggests that you will do so only under certain circumstances—if you are given clear and thorough information about the need for the smoking ban (e.g., the savings to the company and improvements to the health of employees).16 The form of justice illustrated in this example is known as informational justice. This refers to people’s perceptions of the fairness of the information used as the basis for making a decision. Because detailed information was provided about the basis for implementing the smoking ban, informational justice was high, leading people to accept the fairness of the smoking ban. A key explanation for this phenomenon is that informational justice prompts feelings of being valued by others in an organization. This is known as the group-value explanation of organizational justice. The basic idea is that people believe they are considered an important part of the organization when an organizational official takes the time to explain thoroughly to them the rationale behind a decision. And people experiencing such feelings may be expected to believe that they are being treated in a fair manner.
- 197. A Neurological Basis for Responses to Injustice Typically, OB scientists focus only on people’s perceptions and their behaviors, especially when it comes to organizational justice. Interestingly, however, a recent study found that people’s reactions to distributive injustice and procedural injustice manifest themselves differently inside people’s brains.17 To establish this, a group of scientists had students play a game that involved bargaining with others in the hope of winning a financial award. While completing the bargaining game, partici- pants were lying down inside a machine that used functional magnetic resonance imaging (fMRI) to scan their brains. This equipment uses large magnets to determine activation in the brain in terms of the flow of blood to certain regions while people are engaged in various activities. Here, the researchers were looking to determine the regions of the brain that were activated when participants were victimized by the other players’ acts of distributive injustice (taking too much money) and procedural injustice (violating established rules). Based on previous research, it was expected that different regions of people’s brains would respond to procedural injustice and distributive injustice. Procedural injustice, the scientists rea- soned, is highly cognitive as people need to process information about what’s going on to assess the extent to which various procedural rules have or have not been followed. As such, people expe- riencing violations of procedural justice were predicted to show signs of activation in the portions of their brains associated with cognition. By contrast, they
- 198. noted that people respond to distributive injustice in highly emotional ways. For example, they get angry when they believe that someone has not given them what they deserve. Accordingly, the researchers predicted that the brains of people experiencing distributive injustice would show signs of activation in regions known to be associated with emotion. As summarized in Figure 2.3, this is precisely what they found. These findings are important because they suggest that differences in reactions to distributive injustice and procedural injustice are “real” in the sense that they may be traced neurologically. It looks interpersonal justice People’s perceptions of the fairness of the manner in which they are treated by others (typically, authority figures). informational justice People’s perceptions of the fairness of the information used as the basis for making a decision. group-value explanation (of organizational justice) The idea that people believe they are an important part of the organization when an organizational official takes the time to explain
- 199. thoroughly to them the rationale behind a decision. 72 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR PARTS OF THE BRAIN ASSOCIATED WITH COGNITION PARTS OF THE BRAIN ASSOCIATED WITH EMOTIONS • ventrolateral prefrontal cortex • superior temporal sulcus Activated in Response to PROCEDURAL INJUSTICE • anterior cingulate cortex • anterior insula Activated in Response to
- 200. DISTRIBUTIVE INJUSTICE FIGURE 2.3 Neurological Reactions to Distributive Injustice and Procedural Injustice Research using neurological imaging (fMRI) has found that people’s brains respond differently when they are victims of distributive injustice and procedural injustice. As summarized here, different regions are activated in each case, suggesting that there are biological bases for reactions to unfairness. Source: Based on suggestions by Dulebohn et al., 2009; see Note 17. like there is an actual biological basis for people’s reactions to injustice. Another intriguing suggestion from the findings is that as a species, people appear to be “hard wired” to be responsive to injustices. Strategies for Promoting Organizational Justice Treating people fairly on the job surely is a noble objective. Although many people are concerned about being fair for its own sake, of course, there’s also a good practical reason for treating employees fairly. Specifically, individuals who believe they have been unfairly treated in any or all of the ways described respond quite negatively. We know, for example, that people who feel unfairly treated are likely to do such things as work less hard, steal from their employers, do poor- quality work, or even quit their jobs altogether—and then sue their former employers.18
- 201. Naturally, managers are likely to seek organizational justice to avoid these problems. In addi- tion to minimizing such negative reactions, managers also are likely to seek the positive reactions associated with being perceived as fair. For example, fairness has been associated with such desir- able behaviors as helping one’s fellow workers and going along with organizational policies.19 As if these benefits aren’t sufficiently convincing, think about what it would be like if entire departments or work groups were composed of employees who felt unfairly treated. The cumulative impact would be dramatic, and that is precisely what was found by scientists conducting a study in a hotel chain.20 Analyzing 4,539 employees from 783 departments in 97 different hotels, they found that departments composed of employees who felt unfairly treated suffered significantly higher rates of turnover and lower levels of customer satisfaction than those composed of employees who felt fairly treated. And, of course, these factors have an enormous impact on a hotel’s success. In view of these findings, there is good reason for managers to go out of their way to promote justice in the workplace. Fortunately, what we know about organizational justice points to some useful suggestions for doing so. Pay Workers What They Deserve The practices of saving a little money by underpaying employees, informally discouraging them from taking vacation days they are due, or asking them to work “off the clock” are doomed to fail.
- 202. CHAPTER 2 • ORGANIZATIONAL JUSTICE, ETHICS, AND CORPORATE SOCIAL RESPONSIBILITY 73 Employee believes the process on which the decision is based is fair Employee believes the resulting decision is fair Employee is supportive of the organization itself Employee accepts and follows the decision Employee is given voice in making decisions Employee feels valued by decision-making authorities FIGURE 2.4
- 203. The Fair Process Effect: A Summary According to the fair process effect, employees who are given a voice in the making of decisions affecting them will feel valued by the decision-making authorities (e.g., top company leaders). In turn, this leads employees to believe that both the decision-making procedure and the outcomes resulting from it are fair. As a result, employees will accept and follow the decision and be supportive of the organization itself. Paying the “going wage” in your community for work of a certain type and not cheating workers out of what they have coming to them are far wiser investments. After all, workers who feel cheated out of their pay are unmotivated to perform at high levels (see Chapter 7). Fortunately, to help in this regard localized surveys are available that reveal the prevailing rates of pay for different jobs in various locations. For example, individual U.S. states maintain online databases that can be consulted to identify average wages and salaries for individuals performing various jobs in specific cities or counties. The U.S. Bureau of Labor Statistics maintains similar databases. Our point is that determining and then paying prevailing wage rates with employees is a good way to promote justice. And so that employees understand the basis for their pay, it’s use- ful to show them the statistics used for this purpose. A company paying below-market wages is likely to lose in the long run because the best workers will be disinclined to remain working there, or even to accept jobs there in the first place. Not giving workers what they have coming to
- 204. them clearly is “penny wise and pound foolish,” as the saying goes. Offer Workers a Voice One of the most strongly established principles of procedural justice is that people will better accept outcomes when they have had some input into determining them than when they are not involved.21 This is known as the fair process effect. Often, promoting fairness in this manner is accomplished simply by conducting regular meetings with employees to hear what they have to say. The benefits of doing so result not only from making better-quality decisions (because it taps workers’expertise), but also from merely involving workers in the process. After all, workers whose input is solicited are inclined to feel better accepted as valued members of their organization than those who are ignored (this is the group-value explanation noted earlier). As shown in Figure 2.4, this leads them to perceive both that the resulting outcome is fair and that the procedure used to determine it is fair. And, as noted earlier, perceptions of distributive justice and procedural justice are quite beneficial to organizations. What can be done to promote voice in organizations? Although there are many good possibilities, here are some of the most widely used methods. � Meet regularly and invite input. Discussing how to do things—especially things that affect the individuals involved—is one of the most effective ways to promote voice. This gives people input into the making of decisions, promoting the perceived fairness—and
- 205. acceptance—of those decisions. With this in mind, many managers hold regular meetings in which they solicit input from everyone. fair process effect The tendency for people to better accept outcomes into which they have had some input in determining than when they have no such involvement. 74 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR � Conduct employee surveys. Companies conduct surveys among employees for many reasons. The most straightforward is to collect and systematically share employees’ ideas about how to do things better. FedEx is one company that has made widespread use of this technique. � Keep an “open door policy.” Probably the easiest and most straightforward way to give employees voice is by letting them know that you are always available to talk. Managers who use such an “open door policy” send a strong message that they are interested in what their employees have to say. This not only results in good ideas but also makes it clear to employees that they are valued members of the workplace. � Use suggestion systems. To encourage employees to share ideas, many companies and
- 206. government agencies have online sites at which employees can share ideas. Frequently, an employee whose idea is implemented is given a reward that reflects the degree to which the suggestion led to savings for the company. Even paper-and- pencil “suggestion boxes” still are used for this purpose (for an example, see Figure 2.5). Explain Decisions Thoroughly and in a Manner Demonstrating Dignity and Respect To be fair, both interpersonally and informationally, it is essential for managers to take great care in presenting decisions to their employees. Specifically, fairness demands giving employees lots of information about how decisions were made and explaining those decisions in a manner that demonstrates dignity and respect for them. This is especially important when the decisions made have a negative impact on workers. After all, it’s bad enough to learn something negative (e.g., a poor per- formance appraisal, a pay cut, or a layoff) without having a supervisor add insult to injury by not both- ering to explain that decision thoroughly or by demonstrating a lack of concern for your feelings.22 Illustrating this point, consider what it’s like to have to live through a long pay freeze. Although it’s bound to be painful, people may be more accepting of a pay freeze, accepting it as fair, if the procedure used to determine the need for the pay freeze is believed to be thorough and careful—that is, if “a fair explanation” for it can be provided. This was precisely what was found in an interesting study of manufacturing workers’ reactions to a pay freeze.23 Specifically, the researchers made comparisons between two groups of workers:
- 207. those who received a thorough explanation of the procedures necessitating the pay freeze (e.g., information about the organiza- tion’s economic problems) and those who received no such information. Although all workers were adversely affected by the freeze, those receiving the explanation better accepted it. In particular, the explanation reduced their interest in looking for a new job. The practical lesson to be learned from this is important: Even if managers cannot do anything to eliminate distributive injustice (e.g., their “hands may be tied” by company policies), they may be able to reduce some of the sting by providing explanations as to why these unfortunate condi- tions are necessary and doing so in a sensitive and caring fashion. In fact, behaving in this manner can be one of the most effective cost-free things a manager can do. Train Workers to Be Fair Most people perceive themselves as being fair on most occasions. However, as is clear from this section of the chapter, being fair involves several very specific forms of behavior. And, when fac- ing the everyday pressure to get the job done, managers may not be taking into account as many of the principles of organizational justice as they should. With this in mind, it makes sense to train managers in ways of treating employees in a manner they will perceive to be fair. (In Chapter 3, we discuss the essential elements of training in general terms.) Although training employees in ways of enhancing organizational justice is a relatively new
- 208. practice, the results have been very promising. Several studies have been conducted in which managers have been thoroughly trained in techniques for promoting justice in the workplace using much the same content described in this chapter.24 The training has consisted of sharing this infor- mation along with a series of case studies and exercises designed to increase managers’ sensitivity to justice in the workplace. Managers who have been so trained reap several benefits compared to their untrained counterparts. Not only are the employees of the trained managers less inclined to respond in a negative fashion (e.g., by stealing from the company), but they also are more inclined to pitch in and help others in the organization (a phenomenon known as organizational citizenship behavior, which we will describe in Chapter 6). CHAPTER 2 • ORGANIZATIONAL JUSTICE, ETHICS, AND CORPORATE SOCIAL RESPONSIBILITY 75 FIGURE 2.5 Suggestion Systems: An Example Although we tend to think of suggestion systems as popular in large companies, they also are used widely in the nonprofit sector. Here, for example, is the form used by employees of the state of Arkansas to identify suggestions that promise to make the state government “more efficient and more productive.” Rewards equal to 10 percent of the first year’s cost savings (up to $5,000) are given for money-saving suggestions. Certificates or rewards up to $100 are given to employees whose suggestions result in
- 209. intangible benefits, such as ways of improving morale. State of Arkansas DEPARTMENT OF FINANCE AND ADMINISTRATION P.O. Box 3278 LITTLE ROCK, ARKANSAS 72203–3278 PHONE (501) 682–1823 FAX (501) 682–5104 EMPLOYEE SUGGESTION FORM Note: In accordance with Arkansas Code Annotated 21–11–101 the employee suggestion system is available to all full-time state employees of all departments, agencies, boards, commissions, or other agencies of the state supported by appropriation of state or federal funds. MAIL TO: Office of Personnel Management Employee Suggestion System Post Office Box 3278 Little Rock, AR 72203 DO NOT WRITE IN THIS SPACE Employee Suggestion Number: _____________________ Accepted ❑ Unaccepted ❑ Office of Personnel Management
- 210. Please type or print your idea. Be sure to supply all information requested. You may attach additional sheets and examples if needed. READ INSTRUCTIONS CAREFULLY AND COMPLETELY. WHAT IS THE PROBLEM AS YOU SEE IT? WHAT IS YOUR SUGGESTION? HOW WILL YOUR SUGGESTION IMPROVE THE PRESENT SITUATION OR BENEFIT THE AGENCY OR STATE? (BE SPECIFIC - IF MONEY WILL BE SAVED, STATE HOW MUCH AND SHOW HOW YOU FIGURED THE SAVINGS. ATTACH ADDITIONAL INFORMATION IF NEEDED) 76 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR Month 1 M ea n In so m ni a
- 211. Ra ti ng Distributively unjust pay introduced Low High Supervisors trained in informational and interpersonal justice 2 3 4 5 6 Month 2 Month 3 Underpaid/Untrained Underpaid/Trained
- 212. No Change/Trained No Change/Untrained Month 9 Insomnia was unchanged when pay remained distributively fair Distributively unfair pay promoted insomnia Supervisory training in informational and interpersonal justice lowered insomnia among nurses FIGURE 2.6 Losing Sleep over Injustice Can Be Overcome A study by the author found that nurses suffered insomnia after their pay was changed in a manner that left them paid less than before (i.e., a distributive injustice). However, these insomnia reactions were reduced among nurses whose managers were trained in ways to promote interpersonal justice and informational justice. Source: Adapted from Greenberg, 2006; see Note 25.
- 213. As a specific example of the effectiveness of training, consider a study that the author conducted in several hospitals.25 Participants in the study were nurses at several hospitals and their immediate supervisors. The nurses in some of the hospitals experienced a change in their pay system that led them to suffer a pay cut of about 10 percent. Of course, they didn’t like this distributive injustice. In fact, they suffered so much stress as a result (we will discuss this topic in detail in Chapter 5) that they reported symptoms of insomnia. In other words, they lost sleep over being treated unfairly. As this was going on, the supervisors of the nurses were trained in ways to enhance interper- sonal justice and informational justice among their subordinates. Specifically, in two 4-hour class- room sessions case studies and role-playing exercises were used to teach the supervisors specifi- cally how to share information with employees in a manner that shows dignity and respect. As you can see from Figure 2.6, the results were interesting. The nurses whose supervisors were trained in this manner reported significantly less insomnia after the training than before the training. However, the nurses whose supervisors were untrained failed to show any decrease in insomnia during this same period. Bottom line: The training worked. Training supervisors in interpersonal and informational justice (which managers generally have a chance to con- trol on their own, unlike distributions and procedures, in many cases) helped buffer the negative effects of the distributive injustice. In other words, although managers who were trained to demonstrate high levels of informational and interpersonal justice toward their
- 214. subordinates did not make their distribu- tive injustices go away, they helped them to cope with them in a less stressful manner. Our discussion of strategies for combating workplace injustice identifies two key issues worth highlighting. First, some sources of injustice stem from organization-wide policies involving CHAPTER 2 • ORGANIZATIONAL JUSTICE, ETHICS, AND CORPORATE SOCIAL RESPONSIBILITY 77 key practices, such as the determination of pay or the appraisal of performance, that are believed to be unfair. Changing such practices requires a commitment from top executives. However, by understanding the importance of organizational justice, all managers have at their disposal a set of tools for promoting fairness in the workplace. After all, there is generally nothing to stop anyone from sharing more information or from treating others with dignity and respect. And, as we have shown, such actions from individual managers go a long way toward reducing the harm- ful effects that may be caused by system-wide sources of injustice. Ethical Behavior in Organizations: Its Fundamental Nature When you think about Dutch tulips, your mind probably fills with images of their colorful beauty. Back in 1636–1637, however, Europeans were likely to think of a business scandal that became known as tulip mania or tulipomania. Although recent
- 215. analyses discredit several aspects of the case, legend has it that speculators drove up the prices of some species of these highly valued flowers so that they could make an enormous profit.26 Back then, one particular bulb, the Viceroy, sold for as much as 28 times the annual salary of a skilled craftsman.27 Eventually, the economic bubble burst, causing many to lose lots of guilders. Closer to American shores and featured prominently in our own history books, accounts of the early days of American business are riddled with sordid tales of magnates who would go to any lengths in their quest for success, destroying in the process not only the country’s natural resources and the public’s trust but also the hopes and dreams of millions of people. For example, legends abound of how John D. Rockefeller, founder of Standard Oil, regularly bribed politicians and stepped all over people in his quest to monopolize the oil industry. We do not mean to imply that unsavory business practices are only a relic of the past. Far from it! As you know, they are all too common today—so much so that one newspaper reporter referred to ethical scandals as having reached “epidemic levels.”28 Just consider some of the major head- lines from recent years: � New York Times reporter Jayson Blair was caught plagiarizing and fabricating parts of his stories.29 � The two men who ran the wholesale telecommunications company Fortes Telecom charged
- 216. business clients for Internet-based phone services, but obtained these services by hacking into the computers of 15 legitimate VoIP providers.30 � Preying on victims’ desperation, a 42-year-old man was accused of felony home repair fraud for performing shoddy work or unfinished work on the homes of victims of Hurricane Katrina.31 � Indian children are alleged to have been sold to owners of sweatshops, where they work for 16 hours a day making clothing for Gap stores.32 And, of course, who can forget the now-classic scandals that emerged at the dawn of the new millennium? � Martha Stewart served time in prison after being charged with obstruction of justice and lying to federal investigators in connection with a government probe of her alleged insider trading of ImClone stock.33 � Enron officers were cited for “cooking the books” to make millions for themselves.34 � Sears was found to use fraudulent practices in its auto-repair business.35 � Adelphia Communications officials were charged with using corporate funds to make exorbitant personal purchases.36 Clearly, human greed has not faded from the business scene since tulip mania. However, something has changed—namely, the public’s acceptance of
- 217. unethical behavior on the part of organizations. Consider this statement by a leading expert on business ethics. Ethical standards, whether formal or informal, have changed tremendously in the last century. . . . Standards are considerably higher. Business-people themselves, as well as the public, expect more sensitive behavior in the conduct of economic enterprise. The issue is not just having the standards, however. It is living up to them.37 78 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR Moral Values (fundamental beliefs about what is good or bad, right or wrong) Example: It is wrong to harm another person Ethics (standards of conduct in keeping with one’s moral
- 218. values) Example: I should not steal Decision (plan for behaving in an ethical fashion) Example: I decide not to steal money from a coworker even though I need the money Behavior (action taken following from the decision made) Example: I do not steal • Religious background, beliefs, training • Level of
- 219. cognitive moral development • Clearly articulated ethical standards • Training in recognizing and applying ethical standards • Organizational and group norms (Chapter 8) • Culture of the organization (Chapter 14) • Observations of leaders’ behavior (Chapter 13) • Work attitudes and motives (Chapters 6 and 7) • External stressors (Chapter 5) moral values (morals) People’s fundamental beliefs regarding what is right or wrong, good or bad. Not surprisingly—despite the spate of ethical crises that have captured the public’s attention in recent years—growing intolerance of unethical business activity (and, cynically, fear of getting caught) has inspired business leaders to become more ethical. According to a survey conducted a few years ago, workers report that top managers are more inclined to keep their promises, less inclined to engage in misconduct, less likely to feel pressure to
- 220. be unethical, and perceive greater attention paid to practicing honesty and respect for others. At the same time, whatever ethical misdeeds they do witness are much more likely to be reported to organizational authorities.38 To the extent that people are increasingly intolerant of unethical business activity, it should not be surprising to learn that OB scientists are interested in understanding unethical practices and developing strategies for combating them. We will consider these issues in this section and the next section of this chapter. First, however, to prepare you for understanding ethical behavior in organizations, it helps to begin by addressing a fundamental question: What is ethics? What Do We Mean by Ethics? Although people often talk about ethics, it’s not always clear what the term means. With this in mind, let’s define some key constructs. To understand what is meant by ethics, we first must understand the concept of moral values. When social scientists speak of moral values, they are referring to people’s fundamental beliefs regarding what is right or wrong, good or bad. One of the most important sources of moral values is the religious background, beliefs, and training we receive. Although people’s moral values may differ, several are widely accepted. For example, most people believe that helping someone in need (e.g., being charitable) is the right thing to do, whereas harming someone (e.g., killing) is wrong. Based on these beliefs, people are guided in ways that influence the decisions they make and
- 221. the actions in which they engage. These standards are what we mean by ethics. Thus, ethics refers to standards of conduct that guide people’s decisions and behavior (e.g., not stealing from others is one such ethical standard).39 With this in mind, organizational scientists acknowledge that it is not a company’s place to teach employees values. After all, these come with people as they enter the workplace. However, it is a company’s responsibility to set clear standards of behavior and to train employees in recognizing and following them.40 (For a summary of the distinction between moral values and ethics, see Figure 2.7.) ethics Standards of conduct that guide people’s decisions and behavior (e.g., not stealing from others). FIGURE 2.7 Moral Values Versus Ethics As summarized here, moral values (which reside within an individual) provide the basis for ethics (which are standards of behavior that can be regulated by organizations). Ethical standards influence both decisions and behavior in the workplace, which also are affected by a host of other variables identified throughout this book. CHAPTER 2 • ORGANIZATIONAL JUSTICE, ETHICS, AND CORPORATE SOCIAL RESPONSIBILITY 79 Just as organizations prescribe other kinds of behavior that are
- 222. expected in the workplace (e.g., when to arrive and leave), so too should they prescribe appropriate ethical behavior (e.g., how to complete expense reports and what precisely is considered a bribe). Not surprisingly, most top business leaders recognize that clearly prescribing ethical behavior is a fundamental part of good management. After all, says Kent Druyversteyn, former vice president of ethics at General Dynamics, “Ethics is about conduct.”41 In looking at Figure 2.7, please note the row of rounded boxes at the bottom. These identify some of the factors affecting moral values, ethics, decisions, and behavior. The ones correspon- ding to ethics and values are described in this section of the chapter. However, as indicated in the box in the lower right corner, the decisions people make and the behaviors in which they engage are determined by a variety of considerations beyond ethics. Accordingly, these are discussed elsewhere throughout this book (note the references to other chapters in this book). It’s obvious that companies should do things to promote ethical behavior among employees simply because they are morally appropriate. At the same time, however, there’s also a long-term financial incentive. As explained in “The Ethics Angle” section below, being ethical pays off on the bottom line. The Ethics Angle Making a Business Case for Ethical Behavior
- 223. It’s easy to see how a company may reap short-term gains by being deceptive, such as by using lower quality ingredients or charging for services not performed. Over the long-term, how- ever, such unethical practices are doomed to fail as customers will rebel against companies that deceive them. In fact, one can make a business case for long-term ethical behavior: It pays to be ethi- cal because good ethics is good business. The evidence that being ethical pays off in the long run takes the following forms.42 � Improved financial performance. Companies that make a clear commitment to ethics outperform those that make no such commitment on standard measures of financial success. In fact, one study reported that companies that make an explicit commitment to ethical behavior returned twice the value to shareholders than those that were more casual about ethical issues.43 � Reduced operating costs. Many efforts to reduce waste and to save energy that protect the natural environment also help save money in the long run. For example, companies using environmentally sustainable energy sources (e.g., solar and wind power) are not only being good stewards of the envi- ronment but also stand to save on energy costs over time.44 � Enhanced customer loyalty. Customers are inclined to be loyal to companies that demonstrate a commitment to ethical behavior. Consider this tragic example. In 1982 several people in suburban Chicago died after taking Extra Strength Tylenol capsules. The manufacturer, Johnson & Johnson (J&J), immediately pulled all its Tylenol products off store shelves throughout the country.45 J&J officials
- 224. knew that although the company wasn’t at fault they were willing to suffer huge losses so that they could do what was in the best interest of its customers. The company cooperated with officials and eventually it was established that someone had laced the pills with cyanide while on store shelves. J&J’s decisive actions and proactive efforts to help government agencies find the source of the problem led consumers to recognize J&J’s commitment to them. Months later, Tylenol’s share of the pain reliever market not only returned to where it was before this incident, but sur- passed it, reflecting consumers’ willingness to support a company that’s committed to treating them ethically. This incident led to the development of the more expensive, but safer, tamper-resistant packaging in use today. � Increased ability to attract and retain employees. People gen- erally like working at companies of which they can be proud and that treat them well. When talented employees are diffi- cult to find, companies with reputations for being ethical find it easier to attract good job candidates—and retain them. Consider the other side of the coin. The evidence also is compelling that “bad ethics is bad business.” Companies that survive ethical scandals do so under diminished capacity in large part because “the black eye” makes the public shy away from them—both as consumers and as stockholders—at least for a while.46 Good examples from years past include Dow Corning (whose breast implants were found to be unsafe), BP (whose oil spill in the Gulf of Mexico created the worst environmental disaster in U.S. history), and the United Way (where a top official was accused of misusing agency funds). These misdeeds have cost their respective organizations dearly, and regaining the public’s trust has proven to be a slow process. At United Way,
- 225. for example, although only one person, the president of a single chapter, was involved in the ethical scandal, completely independent and scrupulously ethical chapters of the esteemed philanthropic organization suffered severe reductions in donations (one-fifth of former donors stopped giving altogether, and the remaining ones gave less) for at least five years.47 The lesson is clear: Even if company executives do not recognize the benefits of behaving ethically, they surely cannot afford to ignore the costs of behaving unethically. 80 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR FIGURE 2.8 Ethical Versus Legal: Not Always Identical It’s important for today’s business leaders to recognize that just because they might be able to “get away with” something that’s legal doesn’t mean that they should do it if it happens to be unethical. We suspect that this boy might have a hard time
- 226. realizing this when he gets older. TABLE 2.2 Major U.S. Laws That Promote Ethical Behavior in Organizations Businesses—and society at large—can be affected adversely by the unethical behavior of some people in organizations. As a safeguard, several laws have been enacted in the United States in recent decades. Some with the broadest impact are summarized here. Year Law Description 1986 False Claims Act Provides procedures for reporting fraudulent behavior against U.S. government agencies and protects whistle-blowers (see Chapter 11) who do so. 1988 Foreign Corrupt Practices Act (revised) Prohibits organizations from paying bribes to foreign officials for purposes of getting business. 1991, amended in 2004 Federal Sentencing Guidelines for Organizations Provides guidelines for federal judges to follow when imposing fines on organizations found guilty of committing federal crimes.
- 227. 2002, revised in 2007 Sarbanes-Oxley Act Enacted to guard against fraudulent accounting practices (such as occurred at Enron), this law initiates reforms in the standards by which public companies report accounting data. 2003 Federal Prosecution of Business Organizations To protect investors against unscrupulous acts by top executives (also in response to the Enron scandal), these revisions to the Federal Sentencing Guidelines for Organizations now focus on the role of boards of directors—the only parties in organizations with sufficient clout to prevent wrongdoing by high-ranking officials. Ethics and the Law Being ethical is not the same as being legal (see Figure 2.8). In fact, a useful way to think of the law is as providing the minimum acceptable standard to which companies must adhere. Being ethical typically involves following a higher standard. Vin Sarni, former CEO of PPG, put this well when he said, “It is not enough simply to say that our conduct is lawful. The law is the floor. Compliance with it will be the absolute minimum with respect to the PPG associate, no matter where he or she works. Our ethics go beyond the legal code.”48
- 228. At the same time, it must be noted that the law plays a large role in governing ethical behavior within organizations. Some of the major laws enacted in the United States that influence ethical behav- ior in organizations are summarized in Table 2.2. Although all these laws are important when it comes to minimizing unethical behavior in organizations, two have proven to be especially influential. FEDERAL SENTENCING GUIDELINES FOR ORGANIZATIONS. Established in 1991, the Federal Sentencing Guidelines for Organizations provide guidelines for federal judges to follow when imposing penalties on organizations (e.g., restitution, fines, etc.) found guilty of breaking federal laws. Federal Sentencing Guidelines for Organizations Guidelines for federal judges to follow when imposing penalties on organizations (e.g., restitution, fines, etc.) found guilty of breaking federal laws. w w w .C ar to on
- 229. St oc k. co m /J im S iz em or e. CHAPTER 2 • ORGANIZATIONAL JUSTICE, ETHICS, AND CORPORATE SOCIAL RESPONSIBILITY 81 These specify that judges should consider as mitigating factors any efforts on the part of companies to prevent and detect violations of the law (thereby going lighter on companies that have tried to avoid violations). The Guidelines specify the following things that companies can do in this regard.49 � Develop compliance standards and procedures designed to minimize criminal conduct. � Make high-level personnel responsible for overseeing compliance with such standards and
- 230. procedures. � Avoid assigning to positions any employees they know (or should know) to be inclined to engage in illegal activities. � Communicate ethical standards through training programs or by disseminating publications that explain appropriate behavior. � Monitor behavior by having in place a system that employees can use to report criminal behavior without fear of retribution. � Develop a system for enforcing standards, such as by disciplining employees appropriately. � Respond appropriately to offenses by taking reasonable steps to ensure that they will not be repeated. Because these guidelines are very explicit, it shouldn’t be particularly surprising that they have played a huge role in putting into place various mechanisms to help promote ethical behavior in organizations. THE SARBANES-OXLEY ACT. Widely referred to as SOX, the Sarbanes-Oxley Act was passed in an effort to avoid unscrupulous and fraudulent accounting practices (as occurred in the famous Enron scandal) by holding senior company officials personally accountable for their companies’ accounting practices and reports. The rationale is simple: Instead of just signing off on reports whose veracity is questionable because they can do so with impunity, making executives person-
- 231. ally liable for these documents will encourage them to ensure that they are accurate and that the practices used to create them meet proper standards. This law has been somewhat controversial in recent years because of the enormous burdens it has placed on organizations by requiring them to submit various reports stipulating conformity with the law’s various provisions.50 SOX is very specific in places regarding precisely what must be done to avoid misreporting of financial information. Among other things, for example, it requires companies to do the following:51 � Perform a fraud risk assessment. � Evaluate controls designed to prevent or detect fraud. � Evaluate controls over the safeguarding of assets. It’s not too hard to realize that the complex and rapidly evolving nature of SOX has created a booming business in companies that specialize in helping organizations comply with it. In recent years, SOX has spawned dozens of books, software packages, and training programs aimed at company officials who want to ensure that their organizations are adhering to this law.52 Make no mistake about it, complying with SOX is taken very seriously. If you have any doubts, consider the penalties stated in Section 802(a) of the law:53 Whoever knowingly alters, destroys, mutilates, conceals, covers up, falsifies, or makes a false entry in any record, document, or tangible object with the intent to impede, obstruct, or influence the investigation or proper administration of any
- 232. matter within the jurisdiction of any department or agency of the United States or any case filed under title 11, or in relation to or contemplation of any such matter or case, shall be fined under this title, imprisoned not more than 20 years, or both. Why Do Some People Behave Unethically, at Least Sometimes—and What Can Be Done About It? Management experts have long considered the matter of why some people behave unethically on at least some occasions. Put differently, is it a matter of good people who are led to behave unethically because of external forces acting on them (i.e., “good apples in bad barrels”) or is it that bad people behave inappropriately in whatever setting they are in (i.e., “bad apples in good SOX, Sarbanes- Oxley Act A law enacted to guard against future accounting scandals (such as occurred at Enron), by initiating reforms in the standards by which public companies report accounting data. 82 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR Level of Moral
- 233. Development Postconventional level Whatever adheres to universal moral principles (e.g., justice, rights) What's Right? Conventional level Whatever fulfills the obligations of society (e.g., what's good for other people) Preconventional level Whatever keeps me from getting punished Highest level Lowest level FIGURE 2.9
- 234. Kohlberg’s Theory of Cognitive Moral Development This theory distinguishes among the three major levels of cognitive moral development summarized here. According to the theory, people at different levels define what is wrong in different ways, which are limited by their capacity for moral reasoning. cognitive moral development Differences among people in the capacity to engage in the kind of reasoning that enables them to make moral judgments. barrels”)? Acknowledging the key role of leaders in determining the ethical climate of an organ- ization, some scientists have considered the possibility that because of their profound influence, some unethical leaders (so-called “bad apples”) have made their companies unethical as well (turning “good barrels into bad”), or poisoning the whole barrel, so to speak.54 Although the rel- ative importance of “apples” and “barrels” has yet to be firmly decided, it is clear that ethical and unethical behavior is determined by both of these classes of factors—that is, individual factors (the person) and situational factors (the external forces people
- 235. confront in the workplace). In this section of the chapter, we will consider both sets of factors. Individual Differences in Cognitive Moral Development As you know from experience, people appear to differ with respect to their adherence to moral con- siderations. Some individuals, for example, refrain from padding their expense accounts, even if they believe they will not get caught, solely because they believe it is the wrong thing to do. They strongly consider ethical factors when making decisions. However, this is not true of everyone. Still others, as you know, would not think twice about padding their expense accounts, often rationalizing that the amounts of money in question are small and that “the company expects me to do it.” A key factor responsible for this difference is what psychologists refer to as cognitive moral development—that is, differences among people in their capacity to engage in the kind of reasoning that enables them to make moral judgments. (Scientists measure people’s cognitive moral development by systematically analyzing how people say they would resolve various ethical dilemmas. For practice analyzing an ethical dilemma, complete this chapter’s Group Exercise on page 98.) The most well-known theory of cognitive moral development was introduced more than four decades ago by the psychologist Lawrence Kohlberg.55 According to Kohlberg’s theory of cognitive moral development, people develop over the years in their capacity to understand what is right. Specifically, the theory distinguishes among three levels of moral development (for a sum- mary, see Figure 2.9). The first level is referred to as the
- 236. preconventional level of moral reasoning. Kohlberg’s theory of cognitive moral development The theory based on the idea that people develop over the years in their capacity to understand what is right and wrong. preconventional level of moral reasoning In Kohlberg’s theory of cognitive moral develop- ment, the level at which people (e.g., young children and some adults) haven’t yet developed the capacity to assume the perspective of others, leading them to interpret what is right solely with respect to themselves. CHAPTER 2 • ORGANIZATIONAL JUSTICE, ETHICS, AND CORPORATE SOCIAL RESPONSIBILITY 83 People at this level (children and about a quarter of all adults) haven’t developed the capacity to assume the perspective of others. Accordingly, they interpret what is right solely with respect to themselves: It is wrong to do something if it leads one to be punished. Because their cognitive skills are not sufficiently advanced, such individuals generally cannot
- 237. comprehend any argument one may make about something being wrong because it violates their social obligations to others. As people interact with others over the years, most come to use higher-level cognitive processes to judge morality. In a more sophisticated fashion, they judge right and wrong in terms of what is good for the others around them and society as a whole. This second level is referred to as the conventional level of moral reasoning. Approximately two-thirds of adults fall into this category. What they do is governed strongly by what’s expected of them by others, and they carefully scour the social environment for cues as to “what’s right.” People who engage in conventional moral reasoning obey the law not only because they fear the repercussions of not doing so, but also because they recognize that doing so is the right thing to do insofar as it promotes the safety and welfare of society as a whole. Finally, Kohlberg’s theory also identifies a third level of cognitive moral development, the postconventional level of moral reasoning. At this level, people judge what is right and wrong not solely in terms of their interpersonal and societal obligations but also in terms of complex philosophical principles of duty, justice, and rights. Very few people ever attain this level. Those who do, however, follow their own “moral compass,” doing what they are convinced is truly right, even if others don’t agree. Research has found that people behave in very different ways as a function of the level of cog-
- 238. nitive moral development they have attained. For example, as you might expect, people who are at higher levels of cognitive moral development (typically, conventional as opposed to preconven- tional) manifest their greater ethical behavior in several ways. Specifically, they are less inclined to harm others, less likely to misreport information even if it makes them look bad, and steal less from their employers.56 Although efforts to raise people’s levels of moral reasoning through training have been successful, few such efforts have been used in organizations.57 This is in large part because most workers already function at the conventional level, making them sensitive to efforts to promote ethical behavior predicated on changing the social norms that exist within organizations. We now will consider some of the key social dynamics that influence ethical behavior. Situational Determinants of Unethical Behavior As you might imagine, many different situational factors can lead people to behave unethically on the job. Although the list may be long, it is not too difficult to identify some of the major organiza- tional influences on unethical behavior. Here, we will consider three of the most important ones— managerial values that undermine integrity, organizational norms encouraging unethical behavior, and the impact of unethical behavior by leaders. Although these factors surely are interrelated, it is worth identifying them separately so as to highlight their important effects on ethical behavior. SOME MANAGERIAL VALUES UNDERMINE INTEGRITY. Although most managers are inherently ethical, some have developed ways of thinking that lead them to
- 239. make unethical decisions. Given how very influential top leaders are when it comes to influencing others in their organizations, it should not be surprising that unethical managerial values promote unethical organizational deci- sions.58 Several well-known forms of unethical thinking are as follows:59 � Bottom-line mentality. This line of thinking supports financial success as the only value to be considered. It promotes short-term decisions that are immediately financially sound, despite the fact that they may cause long-term problems for the organization. � Exploitative mentality. This view encourages “using” people in a way that promotes stereotypes and undermines empathy and compassion. This highly selfish perspective sacrifices concern for others in favor of benefits to one’s own immediate interests (for an extreme example, see Figure 2.10). � Madison Avenue mentality. This perspective suggests that anything is right if the public can be made to see it as right. The idea is that executives may be more concerned that their decisions appear to be right than about their legitimate morality. This kind of thinking leads some companies to hide their unethical behavior (e.g., dumping toxic waste under cover of night) or to otherwise justify them as acceptable. conventional level of moral reasoning In Kohlberg’s theory of
- 240. cognitive moral develop- ment, the level attained by most people, in which they judge right and wrong in terms of what is good for others and society as a whole. postconventional level of moral reasoning In Kohlberg’s theory of cognitive moral develop- ment, the level at which people judge what is right and wrong not solely in terms of their interpersonal and societal obligations, but in terms of complex philosophical principles of duty, justice, and rights. bottom-line mentality The belief that an organiza- tion’s financial success is the only thing that matters. exploitative mentality The belief that one’s own immediate interests are more important than concern for others. Madison Avenue mentality A way of viewing the world
- 241. according to which people are more concerned about how things appear to others than how they really are—that is, the appearance of doing the right thing matters more than the actual behavior. 84 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR FIGURE 2.10 An Exploitative Mentality Eventually Can Get You into Trouble Bernard Madoff provides one of the most extreme examples of an exploitative mentality. After getting people to trust him, they invested their savings with Madoff’s firm believing that they would enjoy high returns. In actuality, Madoff took $65 billion from thousands of clients without making any investments, fabricating documents to create the illusion that legitimate investments were being made all along. After carrying out this scam for many years, an investigation revealed that Madoff was running a huge Ponzi scheme in which new investors were used to pay off old investors. In June 2009, Madoff began serving a sentence of 150 years (the maximum allowed) for perjury, securities fraud, and related offenses. Recognizing the problems associated with these various orientations is not difficult. Their overemphasis on short-term monetary gain may lead to
- 242. decisions that not only hurt individuals in the long run but also threaten the very existence of organizations. ORGANIZATIONS SOMETIMES ENCOURAGE BEHAVIOR THAT VIOLATES ETHICAL STANDARDS. It is easy to understand that people may behave unethically on the job to the extent that they are encouraged to do so. Consider, for example, how some business executives are expected to say nothing about ethically dubious behavior they’ve witnessed in the company. In fact, in many companies it is considered not only acceptable but also desirable to be secretive and deceitful. For example, the practice of stonewalling—willingly hiding relevant information—is quite common. A major reason for this is that organizations may actually punish those who are too open and honest. As a case in point, consider the disclosure that in 1968 B.F. Goodrich allegedly rewarded employees who falsified and withheld data on the quality of aircraft brakes to meet safety certi- fication standards. This example illustrates how the counternorms of secrecy and deceitfulness were accepted and supported by the organization. Counternorms are accepted organizational practices that run contrary to society’s prevailing ethical standards. For a summary of some of the most common counternorms found in organizations, see Figure 2.11.60 WORKERS EMULATE THE UNETHICAL BEHAVIOR OF THEIR SUPERIORS. Probably very few organizational leaders condone and actively promote unethical
- 243. behavior. However, many promote unethical behavior unwittingly by way of the examples they set for their employees. stonewalling The practice of willingly hiding relevant information by being secretive and deceitful, which occurs when organizations punish individuals who are open and honest and reward those who go along with unethical behavior. counternorms Practices that are accepted within an organization despite the fact that they are contrary to the prevailing ethical standards of society at large. St ev en H ir sc h/ Sp la
- 244. sh N ew s/ N ew sc om . CHAPTER 2 • ORGANIZATIONAL JUSTICE, ETHICS, AND CORPORATE SOCIAL RESPONSIBILITY 85 Ethical Norms of Society Counternorms in the Organization Openness and honesty? Following the rules? Be secretive and deceitfulBe open and honest Use of resources? Taking responsibility? Working with others? Break rules if necessary to get ahead
- 245. Use it or lose it Pass the buck to others if it helps you look better Grandstand, take credit for your own positive actions Be a team player; share credit with others Assume responsibility even for negative actions Be efficient, cost-effective Always follow rules FIGURE 2.11 Ethical Norms Versus Organizational Counternorms Although societal standards of ethics dictate the appropriateness of certain actions, counternorms that encourage and support opposite practices sometimes develop within organizations. Source: Based on suggestions by Jansen & Von Glinow,
- 246. 1985; see Note 60. For example, suppose a manager submits an expense report to her administrative assistant to prepare for submission to the accounting office. Included on it are several items the assistant knows are not legitimate (e.g., lavish meals with clients). Although the manager might not be thinking about it, by padding her expense account she is sending a message to her administrative assistant that stealing from the company is an acceptable practice. Despite what she might say publicly about not stealing, her behind-the-scenes actions tell a different story. As a result, the administrative assistant might not think twice about taking a few dollars from the company’s petty cash box to purchase her lunch. “After all,” she may reason, “my boss takes a little extra money from the company, so it must be okay for me to do so too.” A survey of some 1,500 U.S. employees suggests that this is precisely what happens.61 Specifically, employees who feel that the top managers in their organization act ethically them- selves report seeing far less misconduct among their peers (15 percent) than those who feel that their top managers do not behave ethically themselves or who only talk about behaving ethically (56 percent). Obviously, when it comes to ethical conduct on the job, managers set an example by virtue of their own behavior, and their “actions speak louder than words.” Putting it in the lingo of today’s managers, to promote ethical behavior in their
- 247. companies, it is essential for officials to “walk the talk.” 86 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR FIGURE 2.12 Lockheed Martin Takes Ethics Training Seriously As a manufacturer of high-tech equipment, often for the U.S. military, it’s crucial that Lockheed Martin’s 165,000 employees adhere to the highest ethical standards. To help ensure that this occurs, the company uses multiple methods of ethics training. These include live training sessions, self-paced interactive training sessions conducted online, and booklets explaining ways leaders can promote ethics in their teams. corporate ethics programs Formal, systematic efforts designed to promote ethics by making people sensitive to potentially unethical behavior and discouraging them from engaging in unethical acts. ethics audit The practice of assessing an organization’s ethical practices by actively investi- gating and documenting incidents of dubious ethical
- 248. value, discussing them in an open and honest fashion, and developing a concrete plan to avoid such actions in the future. Using Corporate Ethics Programs to Promote Ethical Behavior Most companies today, particularly large ones, have in place some sort of formal, systematic mechanisms designed to promote ethics. These efforts, known as corporate ethics programs, are designed to make people aware of potentially unethical behavior and to discourage them from engaging in such practices. Components of Corporate Ethics Programs Typically, corporate ethics programs consist of some combination of the following components:62 � A code of ethics. A code of ethics is a document describing what an organization stands for and the general rules of conduct expected of employees (e.g., to avoid conflicts of interest, to be honest, and so on). Today, the vast majority of Fortune 1000 companies have codes of ethics in place. Some codes are highly specific, stating, for example, the maximum size of gifts that can be accepted from suppliers. Others, however, are more general in nature, specifying only the general guidelines that should be taken into account when making decisions. � Ethics training. Codes of ethics are especially effective when they are used in conjunc-
- 249. tion with training programs that reinforce the company’s ethical values.63 In the absence of such training, too many codes come across as “window dressing” and are ignored, if they are even read at all. Ethics training efforts consist of everything ranging from lectures, videotapes, and case studies to more elaborate simulations (for an example, see Figure 2.12). � Ethics audits. Just as companies regularly audit their books to check on irregularities in their finances, they also should assess their employees’ behavior so as to identify irregularities in ethical activity. Such assessments are known as ethics audits. These code of ethics A document describing what an organization stands for and the general rules of conduct expected of employees (e.g., to avoid conflicts of interest, to be honest, and so on). N A SA /J PL /U A
- 250. /L oc kh ee d/ M ar tin /R ap po rt P re ss /N ew sc om . CHAPTER 2 • ORGANIZATIONAL JUSTICE, ETHICS, AND CORPORATE SOCIAL RESPONSIBILITY 87
- 251. require actively investigating and documenting incidents of dubious ethical value, discussing them in an open and honest fashion, and developing a concrete plan to avoid such actions in the future. Conducting an ethics audit can be quite revealing. For some useful guidelines on how to do so, see the OB in Practice section below.64 � An ethics committee. An ethics committee is a group of senior-level managers from various areas of the organization who assist an organization’s CEO in making ethical decisions. Members of the committee develop and evaluate company-wide ethics policies. OB in Practice Using Ethics Audits to Monitor the Triple Bottom Line Historically, accountants have been called on to audit a company’s financial records to ensure that its financial picture is accurate. These days, it’s becoming increasingly common for companies to assess their officers’ and employees’ ethical behav- ior as well. That is, in addition to focusing exclusively on the financial picture, officials also are interested in assuring that their companies are doing well with respect to promoting environ- mental quality and social justice. With these three foci in mind, companies are said to be looking at not one, but three separate measures of success that also take into account the company’s ethical performance. This is known
- 252. as the triple bottom-line. With an eye toward assessing the environmental and social aspects of corporate performance, growing numbers of companies are taking steps to assess ethical lapses in their employees’ behav- ior by conducting regular ethics audits. These consist of investigat- ing and documenting ethically inappropriate behavior, analyzing the behavior thoroughly to find out why it occurred, and developing a plan to promote more ethical behavior in the future. Specifically, here are six guidelines that you can follow to conduct an ethics audit of your own workgroup.65 � Step 1: Obtain approval. Instead of jumping right in, make sure that your own superiors and your company’s top executives buy into your plan. It’s important to gain assurance that they are not only committed to conducting the audit, but importantly, that they also are prepared to deal with whatever it reveals. This step should not be overlooked, no matter how certain you are that the audit should be performed. Simply “nosing around” without permission is sure to land you in trouble, so be sure to get clear approval from the highest levels before proceeding. � Step 2: Plan and conduct a survey. Putting together a team of employees at all levels and from various departments, draft a questionnaire assessing the company’s ethical climate and the ethical behavior of its associates. The questions should look at what the company is doing (e.g., feelings about its treatment of employees) as well as current ethical
- 253. problems (e.g., pressure to cheat customers). Using open- ended questions, the questionnaire also should examine people’s ideas about why various unethical acts have occurred and what the company should be doing in the future. Administer this questionnaire broadly throughout the company in a manner that ensures complete anonymity (i.e., no identifying information should be provided). � Step 3: Investigate company records. In addition to what your colleagues tell you, it’s also important to look at objective measures. As such, your audit should involve careful analyses of official documents, such as ethical mission statements and codes of ethics. You want to see how clear and thorough they are and what purpose they serve. Are people regularly trained in these standards or do they merely serve as “window dressing”? � Step 4: Benchmark your results. To interpret what your company is doing, it’s useful to compare your company’s ethical practices to those of other organizations in the same industry. Such information may be obtained from various sources such as the Internet, industry reports, trade publications, and informal information based on your past experiences. � Step 5: Develop an action plan. Now that you have a good sense of what the company is doing and how it may be improved, you should identify specific steps that can be taken to improve the situation. Be as clear as possible, identifying precisely who will do what and how things will improve as a result. To be effective, your plan must be prac- tical and not overly grandiose. So, don’t attempt too much. If you can address the major issues, that’s a great beginning. � Step 6: Prepare a written report. You now are ready to draft a thorough report documenting your main findings
- 254. along with your plans for addressing them. Before pre- senting this document to all concerned parties, it’s a good idea to circulate it among all those who were involved in conducting the ethics audit. After all, you want to ensure that this important report is accurate and thorough before moving forward. It’s important to acknowledge that conducting an ethics audit is a major commitment and that its findings must be taken seriously. Because this process involves “stirring the pot,” so to speak, it’s not surprising that some companies are reluctant to initiate the process. Those that do, however, stand to benefit from following the steps outlined here. triple bottom-line The contemporary notion that in addition to focusing on an organization’s finan- cial performance, officials also are interested in assur- ing that their companies are performing well with respect to promoting environmental quality and social justice. ethics committee A group composed of senior-level managers from various areas of an organiza- tion who assist an organiza- tion’s CEO in making ethical decisions by developing and evaluating company-wide ethics policies.
- 255. 88 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR � An ethics officer. An ethics officer is a high-ranking organizational official (e.g., the gen- eral counsel or vice president of ethics) who is expected to provide strategies for ensuring ethical conduct throughout an organization. Because the Federal Sentencing Guidelines for Organizations specify that a specific, high-level individual should be responsible for ethical behavior, many companies have such an individual in place. � A mechanism for communicating ethical standards. To be effective, ethics programs must clearly articulate—and reinforce—a company’s ethical expectations to employees. With this in mind, growing numbers of companies are putting into place ethics hotlines, special phone lines that employees can call to ask questions about ethical behavior and to report anonymously any ethical misdeeds they may have observed. The Effectiveness of Corporate Ethics Programs By themselves, codes of ethics have only limited effectiveness in regulating ethical behavior in organizations.66 However, an integrated ethics program that combines a code of ethics with addi- tional components (e.g., an ethics officer, ethics training, etc.) can be quite effective. Specifically, it has been found that compared to companies that don’t have ethics programs in place, within those that do, employees (a) are more likely to report ethical misconduct to company authorities,
- 256. (b) are considered more accountable for ethics violations, and (c) face less pressure to compro- mise standards of business conduct.67 Clearly, the ethics programs are being felt. Ethics in the International Arena Our discussion thus far suggests that figuring out how to behave ethically isn’t always easy. If that’s the case when conducting business at home, then imagine how much more complex things become when conducting business in other countries. After all, people in different cultures often have different ethical standards. Consider these examples: � In China, using pirated software is considered acceptable. � In Indonesia, bribing an official is considered an acceptable cost of doing business. � In Japan, you cannot conduct business unless you give the other party a small gift. In North America, of course, all such acts would be frowned on and considered illegal or at least ethically questionable. Clearly, the implications for conducting business globally are confusing. Given that a great deal of business conducted today is international in nature, it’s important to consider the special ethical challenges this creates. Specifically, how does one behave ethically when conducting business abroad? The answer, as we now discuss, is com- plex and highly nuanced. However, problems may be avoided by adhering to several guiding principles that we will identify. Ethical Relativism and Ethical Imperialism: Two Extreme Positions
- 257. Over the years, philosophers have approached international business ethics by distinguishing between two extreme approaches—ethical relativism and ethical imperialism (see Figure 2.13). As you will see, each of these viewpoints is problematic. However, understanding them is impor- tant because it will help you appreciate the most effective approach, which lies in between these two extremes. ETHICAL RELATIVISM: NOTHING IS SACRED. To some, the matter of how to conduct oneself when doing business abroad is as easy as “when in Rome, do what the Romans do.” This calls for adopting the ethics of whatever country in which one does business—an approach known as ethical relativism. The rationale is that one culture’s ethics are no better than any other’s, and that there are no internationally acceptable standards of right and wrong. The problem with this approach is that it may lead to condoning acts that violate one’s own sense of morality.68 Consider this example. Some time ago, several European pharmaceutical com- panies and tanneries were looking for places where they could dispose of toxic chemical waste. Government officials from most countries they approached said no, fearing the health risks to their people. Nigeria, however, agreed to the business even though local workers, who didn’t have any protective clothing, had a good chance of coming into contact with deadly substances as they ethics officer A high-ranking organiza-
- 258. tional official (e.g., the general counsel or vice president of ethics) who is expected to provide strate- gies for ensuring ethical conduct throughout an organization. ethics hotlines (ethics helplines) Special telephone lines that employees can call to ask questions about ethical behavior and to report anonymously any ethical misdeeds they may have observed. ethical relativism The belief that no culture’s ethics are better than any other’s and that there are no internationally accept- able standards of right and wrong (the opposite of ethical imperialism). CHAPTER 2 • ORGANIZATIONAL JUSTICE, ETHICS, AND CORPORATE SOCIAL RESPONSIBILITY 89 moved the barrels that contained them. Despite the fact that the practice was permitted in Nigeria, it’s easy to see how the risks to the workers make the practice ethically questionable.
- 259. ETHICAL IMPERIALISM: WHAT IS DIFFERENT MAY BE WRONG. Given that following ethical relativism may lead to moral transgressions, then how about the opposite approach? That is, what if, wherever they are, people use their own country’s ethical standards? In other words, they do everywhere whatever they consider to be right while at home. This approach, which is the opposite of ethical relativism, is known as ethical imperialism. It too has limitations. Highly absolute in its approach, ethical imperialism asserts that there is only a single set of rules regarding right and wrong—one’s own. Thus, whatever is different is wrong. Obviously, this is very limiting because it fails to recognize cultural and situational differences that may influence ethical behavior. For example, North American–type training in avoiding sexual harassment (see Chapter 5) likely would be questioned in Middle Eastern countries, where the treatment of women is highly regulated by social and religious customs. Likewise, in parts of the world where people are dying from malnutrition, it may be ill-advised to impose standards for the use of agricultural chemicals that make sense in more developed countries, where lower crop yields are not problematic. Given that the two extreme approaches to global business ethics are problematic, you may be thinking that the best approach lies somewhere in between. So too do most of today’s experts in business ethics. Three Guiding Principles of Global Ethics
- 260. It has been recommended that company officials doing business abroad should adopt a stance between the extremes of ethical relativism and ethical imperialism. In this connection, they may be guided by three key principles: (1) show respect for core human values, (2) demonstrate sensitivity to local traditions, and (3) recognize that context matters when distinguishing between right and wrong.69 ethical imperialism The belief that the ethical standards of one’s own country should be imposed when doing business in other countries (the opposite of ethical relativism). ETHICAL RELATIVISM ''When in Rome..." No internationally acceptable standards of right and wrong ETHICAL IMPERIALISM What is different may be considered wrong The ethical standards of one's own country
- 261. are considered most appropriate GUIDING PRINCIPLES OF GLOBAL ETHICS Show respect for core human values Demonstrate sensitivity to local traditions Recognize that context matters when distinguishing between right and wrong FIGURE 2.13 Approaches to Global Ethics: Two Extremes and a Middle Ground Too often, people attempting to make ethical decisions in international settings follow one of the two ill-advised, extreme approaches identified here—ethical relativism and ethical imperialism. By adopting qualities of both approaches, a middle ground can be found in which people can be guided by three principles of global ethics. Source: Based on suggestions by Donaldson, 1996; see Note 68. 90 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR SHOW RESPECT FOR CORE HUMAN VALUES. Certain practices, considered core human values,
- 262. constitute the minimum ethical standards for organizations to follow. Although everyone might not agree with all values that might be included in this list, few would argue against the idea that the right to safe working conditions, the right to be free, and the right to be treated with dignity and respect are moral values that should guide all behavior in the business world (and elsewhere too, of course). To be ethical, company officials must use their “moral compasses” to guide people toward acceptable practices and away from intolerable ones. For example, taking steps to promote a healthy workplace, one that is free from physical danger and psychological abuse, is ethically appropriate. At the same time, companies should refuse to do business with suppliers, such as those in the garment industry, who use sweatshops. These are factories, often located in develop- ing countries, in which people are required to work long hours under dangerous conditions for extremely little pay and often live in squalid company- owned housing. After all, most would consider it highly unethical to condone such practices by hiring the companies that follow them.70 DEMONSTRATE SENSITIVITY TO LOCAL TRADITIONS. Being ethical requires following local tradi- tions, so long as these don’t violate core human values, of course. As a case in point, consider the practice of gift-giving among business partners in Japan. Although many American companies frown on such acts because they fear that the giving of gifts might be a way of unfairly influencing someone by cultivating his or her favor, this is not the case in
- 263. Japan. This is not to say that bribery is condoned there. Such acts are not meant to be bribes. Rather, the act of giving small gifts is a customary ritual that connotes politeness and trust between the parties. To not accept a gift from a business partner would be considered highly impolite and insulting. These days, because American companies conduct so much business in Japan, officials are coming to accept this practice as acceptable. After all, when you understand precisely what the act means in Japanese culture, it hardly can be considered unethical. It is important to note that demonstrating sensitivity to local traditions does not equate to moral relativism. A moral relativist would accept all actions as ethical in a country if those actions were deemed ethical there. The case of dumping hazardous waste in Nigeria, mentioned earlier, is a good illustration. Doing that surely violates core human values because it endangers people. Merely showing awareness of another country’s cultural norms and adapting one’s behavior accordingly, by contrast, may be a highly effective way of promoting ethical behavior. RECOGNIZE THAT CONTEXT MATTERS WHEN DISTINGUISHING BETWEEN RIGHT AND WRONG. Ethical rules are not hard and fast. Sometimes what’s right in one context may be considered wrong in another. Being ethical requires taking into account the nature of the setting in which acts occur. In the United States, for example, it would be considered unethical (and potentially illegal) to hire one’s own relatives instead of a more qualified nonfamily
- 264. member. Such blatant nepotism is frowned on. By contrast, in India, such a practice makes sense. There, jobs are difficult to find, and some of the most successful companies offer as a perk to their employees the opportunity to hire their children once they graduate from school. This eases unemployment, thereby strengthening the economy. Additionally, Indians believe that keeping the family together is more important than pursuing economic opportunities. For these reasons, the practice of hiring relatives may be consid- ered ethical—but only in India, where conditions are unique. That’s our point: Different contexts may require different ethical guidelines. If, upon reading this, you realize the complexities of attempting to behave ethically in inter- national settings, then you have reached the same conclusion as many a seasoned businessperson. As one business expert put it, “Managers living and working abroad who are not prepared to grapple with moral ambiguity and tension should pack their bags and come home.”71 Beyond Ethics: Corporate Social Responsibility Usually, when we think of business organizations, we focus on their financial responsibilities to stockholders and investors—that is, to make money. Of course, this is not their only responsibility. To quote Henry Ford, “A business that makes nothing but money is a poor kind of business.”72 As we have been discussing, organizations also are responsible for obeying the law and answering to yet a higher standard, behaving ethically. In addition to these considerations, many of today’s
- 265. CHAPTER 2 • ORGANIZATIONAL JUSTICE, ETHICS, AND CORPORATE SOCIAL RESPONSIBILITY 91 Philanthropic Responsibilities Ethical Responsibilities Legal Responsibilities Financial Responsibilities Contributing to and helping society at large Doing what is right and good for everyone Fo llo wi ng th e la ws
- 266. o f s oc ie ty Ma ki ng a p ro fit fo r s to ck ho ld er s FIGURE 2.14 The Pyramid of Corporate Social
- 267. Responsibility To be socially responsible, companies must meet the four different types of responsibilities identified here. The most basic responsibilities, financial, are shown at the bottom because organizations would go out of business if they failed to meet their financial responsibilities. Source: Based on suggestions by Carroll, 1991; see Note 73. organizations are going beyond their ethical responsibilities by taking proactive steps to help society at large by virtue of their philanthropic (i.e., charitable) contributions. Together, these four types of responsibilities—economic responsibilities, legal responsibili- ties, ethical responsibilities, and philanthropic responsibilities—reflect an organization’s most fundamental forms of responsibility. Collectively, this is referred to as the pyramid of corporate social responsibility (see Figure 2.14).73 The pyramid metaphor is used to reflect the fact that the most basic form of responsibility—financial responsibility— is at the base of the pyramid. After all, unless a company makes money, it will go out of business, making it impossible to attend to any responsibilities at all. What Is Corporate Social Responsibility?
- 268. The term corporate social responsibility typically focuses at the top of the pyramid. It describes business practices that adhere to ethical values that comply with legal requirements, that demonstrate respect for individuals, and that promote the betterment of the community at large and the environment. It involves operating a business in a manner that meets or exceeds the ethical, legal, and public expectations that society has of businesses. Some examples of highly socially responsible actions from well-known companies are as follows: � Chiquita Brands International. The world’s top producer of bananas also is considered a leader in corporate social responsibility. The company has a corporate responsibility officer at the vice president level, avoids using toxic chemicals, and unlike some competitors, refrains from mistreating and underpaying its laborers.74 � McDonald’s. So extensive is this international restaurant chain’s commitment to social responsibility that it publishes online a very long Worldwide Corporate Responsibility Report. Among its many key activities is the Ronald McDonald House Charities, which works to improve the health and well-being of children and families around the world. The company also is engaged actively in protecting the environment by recycling and using innovative ways to conserve resources. An interesting feature of McDonald’s 2009 report (published in January 2010) is that it rates the company’s progress with respect to social responsibility goals set in previous years (e.g., having a
- 269. sustainable supply chain, the community, and environmental responsibility).75 � UPS. For more than 50 years, this large package delivery firm has set up a separate nonprofit company, the UPS Foundation, to help the community. Recently, UPS has focused on sustain- ing the environment by deploying 245 new delivery trucks powered by compressed natural gas pyramid of corporate social responsibility The term used to describe an organization’s four most basic forms of responsibility, in order from economic res- ponsibility, to legal responsi- bility, to ethical responsibility, to philanthropic (i.e., chari- table) responsibility. corporate social responsibility Business practices that adhere to ethical values that comply with legal require- ments, that demonstrate respect for individuals, and that promote the betterment of the community at large and the environment. 92 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR
- 270. TABLE 2.3 Top 10 Most Socially Responsible Companies in the United States A research firm analyzed the level of corporate social responsibility among the largest companies in the United States in 2009. Basing its analysis on such key considerations as the companies’ contributions to the community, attention to employees’ needs, preservation of the environment, and advancement of minorities and women, the top 10 performers are listed here. As indicated, these companies excelled in different ways. Rank Company Notable Socially Responsible Action 1 Bristol Myers-Squibb Built hospitals to help people in communities that are underserved by medical professionals. 2 General Mills Provided technical and financial support to develop irrigation systems, dig new wells, and establish a “village savings and loan” microfinancing organization to help African women start small businesses. 3 IBM Saved 4.9 billion KWh of energy between 1990 and 2008 due to energy conservation programs. 4 Merck & Co. Collaborated with community-based organizations and health-care providers in underserved communities to address the growing epidemics of pediatric asthma and type 2 diabetes. 5 HP Helped establish technology centers at 12 Russian universities that are focused on building practical IT-related business skills (with 1,500 students
- 271. admitted thus far). 6 Cisco Systems Partnered with other companies to develop a scalable and sustainable communications platform that connects farmers in rural India with vital knowledge related to agriculture and livestock. 7 Mattel Developed new packaging for products that minimizes waste and relies on biodegradable materials. 8 Abbott Laboratories Improved HIV/AIDS services at more than 90 sites across Tanzania, including building a new treatment center at the country’s largest hospital. 9 Kimberly Clark Purchases virgin wood fiber from companies that use sustainable forest management practices thereby ensuring that the timber harvested does not exceed the rate at which forestlands can regenerate (protecting entire forest ecosystems as a result). 10 Entergy Corp. Helped reduce home owners’ energy costs by distributing weatherization kits and compact fluorescent lightbulbs. Sources: Based on information reported by The Corporate Responsibility Officer, 2009, see Note 79; and the Web sites of the companies listed. (CNG) to cities in Colorado and California. These so-called “green” trucks reflect the com- pany’s commitment to reducing emissions from fossil fuel and lowering its carbon footprint. These three examples are noteworthy, but the companies are far from unique in their dedica- tion to corporate social responsibility. In fact, many of the
- 272. largest companies in the United States have been going out of their way to behave in a variety of socially responsible ways. For a small summary of what companies identified as being in the “top 10” most socially responsible firms are doing, see Table 2.3.76 Forms of Socially Responsible Behavior Our examples make it clear that corporate social responsibility takes many different forms.77 The major ones are as follows. � Helping the community by making charitable contributions. One of the most popular ways for companies to be socially responsible is by giving donations back to the communi- ties in which they operate. Such acts are not only helpful and generous, of course, but also stand to be good business practices insofar as helping the community promote business and helps develop future employees (for a good example, see Figure 2.15). � Preserving the environment. Many companies are involved actively in efforts to preserve the natural environment. Chiquita Brands, McDonald’s, and UPS described on the previous page provide good examples.78 So interested are individuals in preserving the environment, that in 2010 the U.S. Securities and Exchange Commission (the SEC, which regulates standards for publicly traded companies) imposed a regulation that requires public companies to warn investors of any serious risks that global warming
- 273. might pose to their businesses.79 � Socially responsible investing. Another popular form of being socially responsible involves being highly selective in making investments. This calls for making investments CHAPTER 2 • ORGANIZATIONAL JUSTICE, ETHICS, AND CORPORATE SOCIAL RESPONSIBILITY 93 in companies that promote the well-being of society and refraining from investing in com- panies that may do harm. � Promoting the welfare of employees. One of the most fundamental ways a company has of being socially responsible is by promoting the welfare of its own employees. Several com- panies have gone out of their way to avoid abusive labor practices even if they prevail in the industry. As an illustration, the Brazilian cosmetics firm Natura Cosméticos shows its support for human rights by not using child labor. It also gives generously to educational programs and encourages its employees to do volunteer work for nonprofit organizations. Do not be misled by these examples. Being socially responsible involves more than just a few isolated generous practices or occasional kind gestures. Moreover, it is not motivated by an interest in promoting a company’s marketing or public relations efforts. It is far more integrative in nature and genuine in intent. Instead, corporate social
- 274. responsibility is a comprehensive set of policies, practices, and programs that are integrated throughout business operations, and decision-making processes that are supported and rewarded by top management. Profitability and Social Responsibility: The Virtuous Circle Do socially responsible companies perform better financially than those that are less socially responsible? The answer is—generally, yes. A recent study compared the companies on the lists of the “100 Best Corporate Citizens” for the years 2001–2009 with a broad index of 1,000 companies with respect to total return on investments. The findings were impressive: Companies in the 100 Best lists outperformed the others by 26 percent.80 Although there are many possible explanations for these results, and conditions may change in the future, what they suggest about the potential benefits of investing in socially responsible companies appears to be considered seriously—especially since similar findings have been reported by other scientists as well.81 FIGURE 2.15 PepsiCo Helps Haitian Earthquake Victims The earthquake that devastated Haiti in January 2010 inspired many companies to make generous donations to aid victims. PepsiCo was a leader in these efforts by donating $1 million. Half of this sum was directed toward immediate humanitarian relief (e.g., through allocations to the American Red Cross and other worthwhile charities), and the remaining half was aimed at long-term efforts to help rebuild Haiti’s infrastructure and buildings so as to make them less
- 275. vulnerable to any future natural disasters. The company also donated cases of its beverage products, Aquafina bottled water and Gatorade for victims and relief workers. A FP P ho to /T ho ny B el iz ai re /N ew sc om . 94 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR
- 276. Today’s Diverse and Global Organizations Nike Turns the Tables on Critics of Employee Conditions The Nike “swoosh” is one of the most recognizable symbols in the world. This is a testament to Nike’s remarkable ability to mar- ket its products in a global environment. Nike is currently seen as a company that is deeply committed to ethical practices, but this has not always been the case. In the 1990s, Nike received complaints from consumers who were appalled at persistent reports concerning the working con- ditions in Nike’s Asian factories. Many accused Nike of paying meager wages to employees while offering huge amounts of money to sports stars. In addition, there was evidence that chil- dren under the legal working age were being hired in factories in Cambodia. The resulting consumer boycott of Nike products harmed both its image and sales. Nike executives continued to deny these accusations until 2003, when they finally published the names and locations of their 700 supplier factories. They also agreed that conditions in those factories would be monitored independently and prom- ised to integrate corporate responsibility into all facets of the business. During 2005 and 2006, Nike focused on educating workers about their rights to form unions and bargain collectively. Other significant areas addressed were those of harassment, excessive overtime, payment of fair wages, and environmental issues. The
- 277. company now monitors its suppliers to ensure that work hours, wages, benefits, environmental concerns, and worker health and safety rules are all compliant with Nike’s procedures. All of Nike’s suppliers must agree to follow the company’s Code of Conduct, which includes the following: 1. There is to be no use of forced labor of any kind. 2. No person under the age of 18 can be hired. 3. The minimum wage or customary industry wage must be paid. 4. All legal benefits should be paid. 5. Workers must be fully compensated for overtime. Employees are entitled to one day off a week and a maximum 60-hour workweek. 6. Documented health and safety regulations should be in place. 7. Nike factories can be inspected for compliance with the Code of Conduct at any time. Nike’s actions have been widely applauded and were recognized by its placing second on the 2006 Fraser Ethical Reputation List. There is no doubt that their efforts at ethical management are even more appreciated by the workers in its many factories.84 Although there are surely many different reasons for this link between social responsibility and profitability, a key one, which we also mentioned in connection with ethics, is that people often support the socially responsible activities of organizations with their patronage and invest-
- 278. ments. With this in mind, there exist mutual funds that invest only in socially responsible compa- nies and books that provide detailed information on the socially responsible (and irresponsible) behavior of companies that consumers and investors can use to guide their decisions.82 Today, individuals who desire to support socially responsible companies by “voting with their dollars” can find it easy to get the information they need on the Internet. That this may contribute to the financial well-being of a company is important, of course, since financial considerations are an organization’s most basic responsibility (which is why they are at the base of the corporate social responsibility pyramid shown in Figure 2.14). That said, it is important to keep in mind that most companies engaging in socially responsible behavior do so for its own sake, and not as a path to profitability. Although profit may not be the primary objective for engaging in socially responsible behav- ior, it is clear that there is a strong link between the two. Moreover, this connection appears to be bidirectional in nature. The idea is straightforward: Companies that are successful financially invest in social causes because they can afford to do so (i.e., they “do good by doing well”) and as we noted previously, socially responsible companies tend to perform well financially (i.e., they “do well by doing good”). This relationship, which has been referred to as the virtuous circle, is shown in Figure 2.16.83 With the virtuous circle in mind, it is not surprising to find that some of the world’s most
- 279. profitable organizations are also among the most philanthropic. As an example, let’s consider ExxonMobil, which regularly is identified as one of the most profitable companies in the world. In 2008 alone, the Exxon Mobil Corporation, its divisions and affiliates, and the ExxonMobil Foundation donated $189 million in cash, goods, and services worldwide ($111 million in the virtuous circle The tendency for compa- nies that are successful financially to invest in social causes because they can afford to do so (i.e., they “do good by doing well”) and for socially responsible companies to perform well financially (i.e., they “do well by doing good”). CHAPTER 2 • ORGANIZATIONAL JUSTICE, ETHICS, AND CORPORATE SOCIAL RESPONSIBILITY 95 "Doing well by doing good" "Doing good by doing well" The Virtuous Circle Being socially responsible helps companies make
- 280. money Rich companies can afford to be more socially responsible. FIGURE 2.16 The Virtuous Circle It has been suggested that socially responsible companies perform well financially because they are supported by customers and investors. As a result, they become wealthier, making it easier for them to become even more philanthropic. This is known as the virtuous circle. Source: Based on suggestions by Treviño & Nelson, 2006; see Note 83. Summary and Review of Learning Objectives 1. Identify four different forms of organizational justice and the organizational impact of each. Organizational justice, people’s perceptions of fairness in organizations, takes four distinct forms. Distributive justice refers to the perceived fairness of rewards (e.g., pay) received. People
- 281. who feel they have received fair amounts of reward feel satisfied with their jobs. Procedural justice refers to people’s perceptions of the fairness of the procedures used to determine the outcomes they receive. When high levels of procedural justice are perceived, people are inclined to follow organizational rules and policies. Interpersonal justice refers to the fairness of interpersonal treatment by others. High levels of interpersonal justice are related to high levels of satisfaction with one’s supervisor. Finally, informational justice refers to people’s perceptions of the fairness of the information used as the basis for making a decision. People tend to be highly valued by organizations in which they perceive high levels of informational justice. 2. Describe strategies that can be used to promote organizational justice. Promoting organizational justice can be done in several ways. First, it is important to pay work- ers what they deserve—the “going rate” for the work done wherever they work. Underpaying workers promotes dissatisfaction, leading to turnover. Second, workers should be given a voice—that is, some input into decisions. This may involve such strategies as holding regular meetings, conducting employee surveys, keeping an “open door policy,” and using suggestion systems. Third, follow openly fair procedures. Specifically, promote procedural fairness, such as by using unbiased, accurate information and applying decision rules consistently. Managers also should openly describe the fair procedures they are using. Fourth, managers should explain decisions thoroughly in a manner demonstrating dignity and
- 282. respect. Fifth, workers should be trained to be fair, such as by adhering to the principles described in this chapter. 3. Explain what is meant by ethical behavior and describe its relation to the law. Whereas moral values are people’s fundamental beliefs regarding what is right and wrong, ethics refers to standards of conduct that guide people’s decisions and behavior. Organizations are concerned about promoting ethical behavior in organizations. Behaving United States and $78 million in other countries).85 By making these donations, the company surely is promoting goodwill. That this results in increased profits is a distinct possibility. And as this occurs, it becomes possible for ExxonMobil to make still more generous charitable contribu- tions. In this manner, the virtuous cycle continues. 96 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR ethically is highly desirable for two important reasons. First, good ethics is good business. In various ways, organizations in which ethical behavior prevails tend to be more successful than those marked by low levels of ethics. Second, behaving ethically is consistent with many legal requirements—most notably, the Federal Sentencing Guidelines for Organizations and the Sarbanes-Oxley Act.
- 283. 4. Describe the individual and situational factors responsible for unethical behavior in organizations and methods for minimizing such behavior. People behave ethically or unethically due to a combination of individual and situational factors. A key individual factor is the individual’s level of cognitive moral development. According to Kohlberg’s theory of cognitive level of moral development, over time people develop the capacity to make moral judgments. The more highly developed this capacity, the more likely people are to engage in ethical behavior. However, situational factors also dic- tate behavior. For example, some organizational norms (e.g., stonewalling) discourage ethi- cal behavior, managerial values sometimes discourage ethical behavior, and subordinates emulate their manager’s unethical acts. Unethical behavior may be minimized by corporate ethics programs that use codes of ethics, use ethics training, have bodies formally responsi- ble for ethics, have a mechanism for communicating ethical standards, and use ethics audits. 5. Explain ways of behaving ethically when conducting business internationally. Behaving ethically when conducting international business is challenging because different norms of ethics apply in different cultures. Managers should resist the temptation to engage in ethical relativism by blindly adopting whatever ethical norms prevail in a certain country and ethical imperialism by insisting on applying their own country’s ethical standards wher- ever they do business. Instead, it is preferable to adopt a stance between these two extremes.
- 284. This involves following the guiding principles of global ethics: (1) show respect for core human values, (2) demonstrate sensitivity to local traditions, and (3) recognize that context matters when distinguishing between right and wrong. 6. Explain what is meant by corporate social responsibility, describe the forms it takes, and characterize the relationship between responsible behavior and financial profitability. Corporate social responsibility refers to business practices that adhere to ethical values, that comply with legal requirements, and that promote the betterment of individuals and the community at large. Its most popular forms include making charitable contributions to the community, preserving the environment, investing in a socially responsible manner, and promoting the welfare of employees. Generally, research shows that socially responsible companies tend to be more profitable than companies that are less socially responsible. This reflects the virtuous circle, the tendency for successful companies to be socially responsible because they can afford to do so, which in turn, helps their chances of being even more financially successful. Points to Ponder Questions for Review 1. What is organizational justice, and how are its four different types different from one another? 2. What specific things can managers do to help promote
- 285. perceptions of fairness in their organizations? 3. What is the difference between ethics and moral values, and why should managers be concerned about promoting ethical behavior? 4. What special ethical challenges are created by doing business internationally? 5. What are the components of an ethics program, and how effective are such programs at promoting ethical behavior? 6. What is meant by corporate social responsibility, and why should organizations be concerned about being socially responsible? Experiential Questions 1. Think about a time in which you were a victim of orga- nizational injustice. What specific types of justice were violated? How did you feel, and how did you react? What could have been done to avoid these injustices? 2. What do you believe are the major ethical challenges faced by the employees of the company in which you work? What might be done to make people in your company behave more ethically? CHAPTER 2 • ORGANIZATIONAL JUSTICE, ETHICS, AND CORPORATE SOCIAL RESPONSIBILITY 97 Experiencing OB
- 286. Individual Exercise Assessing Organizational Justice Where You Work To learn about how workers respond to various types of injustices they may experience in the workplace, scientists have found it useful to use rating scales like the one shown. By completing this scale, you will gain some useful insight into your own feelings about the fairness experi- enced in the organization in which you work. Directions 1. Using the following scale, respond to each of the questionnaire items by selecting a number from 1 to 5 to indicate the extent to which it applies to you. 1 � almost never 2 � slightly 3 � moderately 4 � greatly 5 � almost always 2. In responding to each item, think about a particular organization in which you work—or, if you are a student, think about a particular class. 3. Where you see the word “(outcome),” substitute a specific outcome that is relevant to you (e.g., for a worker, pay; for a student, a grade). 4. Where you see the word “(superior),” substitute a specific authority figure that is relevant to you (e.g., for a worker, one’s supervisor; for a student, one’s teacher).
- 287. Scale To what extent . . . 1. Is it possible for you to express your views about your (outcome)? 2. Are your (outcomes) generally based on accurate information? 3. Do you have an opportunity to correct decisions made about your (outcome)? 4. Are you rewarded appropriately for the effort you put into your work? 5. Do the (outcomes) you receive reflect the quality of your work? 6. Is your (outcome) in keeping with your performance? 7. Are you treated politely by your (superior)? 8. Does your (superior) treat you with dignity and respect? 9. Does your (superior) refrain from making inappropriate comments? 10. Does your (superior) communicate openly with you? 11. Does your (superior) tell you things in a timely fashion? 12. Does your (superior) explain decisions to you in a thorough fashion? Source: Adapted from Colquitt, 2001; see Note 5. Scoring and Interpretation 1. Add your responses to questions 1, 2, and 3. This is your distributive justice score. 2. Add your responses to questions 4, 5, and 6. This is your procedural justice score. 3. How socially responsible is the company in which you work? What particular things does it do to enhance the community, the lives of its employees, and/or the environment? What else might it do to be more
- 288. socially responsible? Questions to Analyze 1. The people in a company believe that they are being unfairly treated. What forms might this take? Why is this problematic? What can be done to overcome this situation? 2. The people in your company are behaving unethically, making you feel uncomfortable. What might be responsible for this situation, and what might be done to overcome it? 3. A company desires to become more socially responsi- ble. What particular things might it do to achieve this objective, and what benefits might be expected to result from these actions? 98 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR 3. Add your responses to questions 7, 8, and 9. This is your interpersonal justice score. 4. Add your responses to questions 10, 11, and 12. This is your informational justice score. 5. For each score, higher numbers (e.g., 12–15) reflect higher perceived amounts of the type of fairness in question, whereas lower scores (e.g., 3–6) reflect lower perceived amounts of that type of fairness.
- 289. Questions for Discussion 1. With respect to what particular type of fairness did you score highest? What specific experiences contributed to this assessment? 2. With respect to what particular type of fairness did you score lowest? What specific experiences contributed to this assessment? 3. What kinds of problems resulted from any violations of any type of organizational justice you may have experienced? What could have been done to avoid these violations? Group Exercise Taking Credit for Another Person’s Ideas: Analyzing an Ethical Dilemma More often than you might imagine, managers confront situations in which they have to decide the right thing to do. Such “ethical dilemmas,” as they are known, are usually quite challenging. Discussing ethical dilemmas with others is often a useful way of shedding light on the ethical path by identifying ethical considerations that you may have overlooked on your own. This exercise will give you an opportunity to analyze an ethical dilemma. Directions 1. Divide the class into multiple groups of three or four students. 2. Read the following ethical dilemma. 3. Working together with the others in your group, analyze the dilemma by answering the
- 290. following questions: a. As the person in this situation, what do you think you would do? What factors enter into your decision? b. What do you think would be the right thing to do? Explain the basis for your answer. Ethical Dilemma You are a mechanical engineer working on developing new products for a large company. Your product-development team is composed of specialists in different fields from through- out the organization. Everyone shares ideas freely with one another, and the team as a whole shares credit for its accomplishments. At least, you think so. One day you learn that the team leader, an older gentleman who resents having to work with others, has been bad-mouthing several members of the team. Worse yet, he’s also been taking credit for their ideas. Once, you even overheard him say, “Those guys can’t do anything without me. I’m really the brains behind the operation. That idea for the new packaging design was all mine, but I let them take credit for it.” Although you are not the direct victim of this assault—at least on this occasion—you are concerned about the effects on your team’s morale and performance. You also fear that one day, it might be your ideas for which he is taking credit. You know this is wrong, but you don’t know how best to handle the situation. Questions for Discussion 1. Did the members of your group generally agree or disagree
- 291. about what they would do in the situation described? What new viewpoints, if any, did you learn from others in your group? 2. Did the members of your group generally agree or disagree about what they thought was the right thing to do? What were the major points of agreement and disagreement? 3. Have you or members of your group ever been in similar situations? If so, how were they handled? From your own experiences and the experiences of others, what did you learn about handling an ethical dilemma of this nature? CHAPTER 2 • ORGANIZATIONAL JUSTICE, ETHICS, AND CORPORATE SOCIAL RESPONSIBILITY 99 On January 23, 2006, CNET News.com quoted an anonymous source describing strategic plans made at a meeting of HP’s board of directors. Because the meeting was held behind closed doors and with a history of similar media leaks occurring for about a year, HP’s chairperson, Patricia Dunn, had enough. Frustrated, she wanted to get to the bottom of this and root out the mole before serious damage could be done. Although one can hardly blame Dunn for wanting to protect the interests of her company, her tactics may be considered questionable, at best. Dunn was so angry that she authorized a private inves- tigation firm to uncover the source of the leaks. But the firm she hired to conduct the probe, the data-brokering com- pany Action Research Group, went a bit too far. Using a
- 292. practice known as pretexting, the investigators obtained the telephone records of more than a dozen people—reporters, HP board members, and employees—by pretending to be them (i.e., contacting the telephone company under false pretexts). Believing that the practice already had been going on and that it seemed an appropriate means to expose the individuals who leaked vital information about the com- pany, it went on with Dunn’s full consent and knowledge for about a year. There was only one problem with the plan: It was illegal. Almost a year to the day that the CNET story broke, a California Superior Court found that HP willingly and knowingly accessed telephone account information with- out the account holder’s permission and that it violated an identity theft statute by obtaining personally identifying information and then using it for unlawful purposes. A set- tlement was agreed upon in which HP admitted no liability and no civil actions would be pursued against company officers. In exchange, HP’s attorneys agreed to take steps that would help ensure the company’s ethical behavior in the future. Specifically, for five years, HP was required: (1) to appoint a chief ethics and compliance officer, (2) to retain an expert in the field of investigations to assist this individual in conducting proper investigations, (3) to expand the role of the company’s chief privacy officer to review HP’s investigation practices, and (4) to expand the codes of conduct followed by the company’s employees and vendors so that they covered appropriate investigation procedures. To insure that these practices were followed, HP was required to set aside $13.5 million (in addition to paying $1 million in statutory damages and reimbursement of costs borne by the California Attorney General’s office). Unlike
- 293. Enron, whose officials took steps to hide their guilt, Dunn cooperated fully with authorities although, of course, she stepped down as chairperson. Dunn explained that she was never aware that the tactics used in the probe were illegal, and regretted the use of “inappropriate techniques.” Eager to put this distasteful chapter behind it, Dunn’s replacement, HP chairman Mark Hurd, explained that he is “committed to ensuring that HP regains its standing as a global leader in corporate ethics and responsibility.” Questions for Discussion 1. What legal and ethical actions might Dunn have taken to prevent further leaks of sensitive information? 2. Of the four things that HP was required to do, which one do you believe will be most effective in avoiding future unethical behavior in the company? Why? 3. What aspects of the business environment might have put subtle pressures on Dunn to respond as she did? C ase in Poin t ■ HP = Hidden Pretexting? What Did in Dunn? Practicing OB Employee Theft in Convenience Stores The district manager of a chain of 24-hour convenience stores is very concerned about her stores’ rate of employee theft, which is currently about twice the industry average and rising
- 294. rapidly. Because this problem has arisen suddenly, you and she suspect that it is a response to some recently introduced changes in the company’s overtime policy. Managers who used to be paid time-and-a-half for each hour they worked over 40 are now paid a flat salary that typically results in lower total wages for the same amount of work. Answer the following questions based on the information in this chapter. 1. What form of justice appears to have been violated by the new pay policy? Explain your answer. 2. In this case, the new pay policy was implemented without first discussing it with store managers. Do you think that the theft rate might have been lower had this been done? What else could be done to reduce the growing theft rate? 3. The company’s code of ethics expressly prohibits theft, but other than being handed a copy along with other company documents and forms upon being hired, hardly anyone pays attention to it. What do you think could be done, if anything, to enhance the effectiveness of the code of ethics as a weapon for combating the theft problem? Pa rt 1 V id eo
- 295. C as es 100 PART 1 • INTRODUCTION TO ORGANIZATIONAL BEHAVIOR ■ Global Business at KPMG International knowledge has become a top priority for managers at KPMG. KPMG provides audit, tax, and advisory services to clients located around the world. The company is an amalgam of firms located in approximately 180 countries; these businesses come together under the KPMG umbrella. According to Aidan Walsh, head of KPMG’s Global Mobility program, because today’s clients are operating in foreign locations, KPMG must be prepared to provide the services they need in those markets. To that end, the com- pany has implemented a program in which managers from one country are sent on assignments in another country. The goal is to allow supervisors to gain business experi- ence in foreign markets and languages; obtain cross- cultural experience; and possibly earn foreign certifications. Foreign assignments at KPMG last from three months to five years. Walsh believes that because so many managers today want to acquire foreign experience, the program has given KPMG a competitive advantage when it comes to hiring. Discussion Questions 1. Can KPMG be classified as a multinational enterprise?
- 296. If so, how does this designation change the services KPMG offers? 2. How have the three major forces driving globalization (as discussed in Chapter 1) facilitated KPMG’s global expansion, and what new challenges and opportuni- ties do these forces bring to KPMG? 3. How does the Global Mobility program at KPMG help managers avoid both culture shock and the kind of ethnocentric behavior commonly found in managers initially exposed to new cultures? ■ Social Responsibility at Terra Cycle Social responsibility is important at Terra Cycle, a company that makes consumer products from garbage. The company was founded by then–college student Tom Szaky, who ini- tially developed his ideas for the company by entering and winning various business-plan competitions. However, it was not until he won a contest paying $1 million that Szaky’s commitment to being an eco-capitalist solidified. The contest rules required Szaky to change his focus from using waste materials to produce and package consumer products and to using more traditional inputs to produce an organic product. Szaky refused to compromise his ideals, rejected the prize money, and scraped together enough funds to start the business on his own. He claims that he is not an environmentalist; rather, he simply wants to do the right thing for society and the world. Eco-friendly products usually are more expensive to produce than standard ones, keeping them from main- stream consumers. Szaky hopes to change this by show- ing how an eco-capitalist can make money while helping
- 297. the environment simply by recognizing the value in waste. Discussion Questions 1. How does Terra Cycle’s business model reflect the basic elements of the pyramid of corporate social responsibility, as presented in Chapter 2? 2. Which of the forms of socially responsible behavior does Terra Cycle pursue? 3. How does the virtuous circle concept discussed in the text relate to Terra Cycle’s approach to strategy and profitability? ■ Work/Life Balance P roviding a good balance between work and outside interests and responsibilities is important at Ernest & Young. In response to a survey indicating that employees valued flexibility in their jobs, the company has attempted to create an atmosphere in which people have the oppor- tunity to achieve not only their career goals, but also their personal goals, whether these include family obligations or some other interest. Ernest & Young has adopted what it refers to as its People First program, according to which the firm commits to doing right for employees, who in turn commit to doing right for the firm. Employee Maryella Goekel notes that the People First program enables workers to be 100 percent dedicated to whatever they are doing at a particular moment, whether it’s outside or inside the firm. Goekel also notes that Ernest & Young tries to treat workers like adults rather than children, and makes the assumption that
- 298. once an employee knows what has to be accomplished, it will be done. One person who has worked at Ernest & Young for more than a decade says that the firm’s dedication to ensuring that workers have a balance between work and life through its flexible system gives the company a com- petitive advantage when it comes to employee retention. Discussion Questions 1. Using the discussion of Theory X versus Theory Y in Chapter 1, explain why a work/life balance is impor- tant for employees at Ernest & Young. 2. How does Ernest & Young’s People First program relate to the human relations movement described in Chapter 1? 3. How do the family friendly policies at Ernest & Young help the company meet the challenges associated with a demographically diverse workforce? Chapter Outline � Social Perception and Social Identity: Understanding Others and Ourselves � The Attribution Process: Judging the Causes of Others’ Behavior � Perceptual Biases: Systematic Errors in Perceiving Others
- 299. � Stereotyping: Fitting People into Categories � Perceiving Others: Organizational Applications � Learning: Adapting to the World Around Us � Training: Learning and Developing Job Skills � Organizational Practices Using Reward and Punishment Learning Objectives After reading this chapter, you should be able to: 1. Distinguish between the concepts of social perception and social identity. 2. Explain how the attribution process works, and describe the various sources of bias in social perception. 3. Understand how the process of social perception operates in the contexts of employment interviews and performance appraisals. 4. Define learning and describe the two types most applicable to OB: operant conditioning and observational learning. 5. Describe how principles of learning are involved in organizational training and innovative reward systems. 6. Compare the way organizations use reward in organizational behavior management programs, and how they can use punishment most effectively
- 300. when administering discipline. P A R T Basic Human Processes 3CHAPTE R 2 Perception and Learning: Understanding and Adapting to the Work Environment 101 Preview Case ■ In Tune for Success The Pearl River industrial area in China may at firstseem an unlikely place to produce world-class pianos. Its rise to fame, though, can be directly attrib- uted to the foresight of its leader, Tong Zhi Cheng. Tong was raised in the days when Chairman Mao was still in power, and he sometimes reflects on his modest upbringing. He joined the company in 1959 and gained an in-depth understanding of the company by perform- ing the different jobs (such as sanding, painting, and key- board assembly) that are involved in the construction of a piano. He also came to understand the skills and quality standards needed in this kind of work. This knowledge was invaluable when he became general manager in
- 301. 1992. In 1978, much-needed reforms caused China to move toward a more liberal economy. This created con- ditions for growth at Pearl River Pianos and other Chinese businesses. Growth was also driven by the Chinese people themselves, who attach great impor- tance on their children being able to play piano. Today, it is estimated that as many as 30 million Chinese people are now learning to play the instrument. Early visitors to the factory, particularly those from the West, were not impressed with the quality and workmanship of the early pianos. Tong, however, was far from being offended by critical comments about his company’s products; he decided that the best course of action was to learn from others. Bud Corey from Wurlitzer was hired to investigate their produc- tion methods and to suggest improvements. Other experts were brought in to evaluate other areas, such as finishing and coating pianos. A further opportunity for growth was provided by the company’s joint ven- ture with Yamaha, when Pearl River began to manu- facture pianos under the Yamaha brand name. The Japanese company was eager to enter the expanding Chinese market; the arrangement also allowed Pearl River to take advantage of Japanese know-how. In fact, one of Tong’s great achievements was to ensure that the benefits of Western expertise were available to the entire workforce. Although the foreign experts were paid 150 times the amount of the Chinese workers, Tong decided that the experience was well worth the investment. He also hired Al Rich, who already had great experience in the U.S.
- 302. piano industry, to help Pearl River break into the American market. However, the workers themselves benefited from subsidized housing, free travel to work, and free lunches— although basic salaries were not the highest. Despite technological improvements and the introduction of more machinery, a substantial number of workers were still required for work such as hand finishing. Tong, who asserts that perfection is the ulti- mate goal for managers and employees, has continued to insist on the highest standards for his workforce.The Chinese government also saw the value of Tong’s methods and persuaded other less successful instru- ment companies to become part of Pearl River. Consequently, a network of Pearl River companies, such as Pearl River Guitars and Pearl River Violins, has emerged. These demonstrate the same values and processes as the original company. Meanwhile, the piano factory at Guangzhou has now become the largest piano-making company in the world. The knowledge gained from the many Western con- sultants and partnership arrangements has enabled Pearl River to successfully establish a presence in the United States and become a successful global brand with the financial muscle to take over German premium piano maker Ritmüller and come to a collaboration agreement with Steinway. The fact that Pearl River is now the instrument of choice for a wide range of virtu- osos bears testament to the capabilities of Tong and the processes that have characterized the company. It is clear that Tong was a farsighted individual who undoubtedly saw the value of learning as a result of his own experiences. This enabled him to show employees how to perform their jobs
- 303. and to judge their completed work for quality. And learning, as you might imagine, is a vital process when it comes to effectively performing on the job, whether it’s at the very top, as in this case, or learning lower-level skills. In addition, Tong was one of the first managers in China to see the value of learning from consultants from around the globe. This is a key element of a process known as social perception. Because social perception and learning are so fundamental to the way people behave in organizations, we devote this chapter to describing these topics in detail. Specifically, we begin by discussing the various processes that are responsible for social perception, and discuss the 102 PART 2 • BASIC HUMAN PROCESSES CHAPTER 3 • PERCEPTION AND LEARNING: UNDERSTANDING AND ADAPTING TO THE WORK ENVIRONMENT 103 specific ways they operate in organizations. Then, we move to the topic of learning. Here, too, we cover both the basic principles that are responsible for successful learning and the specific applications of these principles on the job. After reading this chapter, you will come away with a good understanding of some of the basic psychological processes that occur not only at Enterprise, but in other organizations as well.
- 304. Social Perception and Social Identity: Understanding Others and Ourselves When it comes to forming opinions about people, there is a subtle, yet powerful process going on—a process by which individuals come to judge and understand others with whom they come into contact. This process, known as social perception, will be described here. Then, after focusing on how we come to make judgments of others, we will examine the other side of the coin—namely, how we come to develop identities of ourselves. As you read about these phenom- ena, you will learn about processes that are so basic that you’ve probably never thought about them. As you will see, a great deal of insight can be derived by making explicit these important processes that we generally take for granted. Social Perception: What Are Others Like? Suppose you meet your new boss. You know her general reputation as a manager, you see the way she looks, hear the words she says, and read the memos she writes. In no time at all, you’re trying to figure her out. Will she be easy to work with? Will she like you? Will she do a good job for the company? On the basis of whatever information you have available to you, even if it’s very little, you will try to understand her and how you will be affected by her. Put differently, you will attempt to combine the various things you learn about her into a meaningful picture. This process is known as social perception—the process of combining, integrating, and interpreting information about others to gain an accurate understanding of them.
- 305. The social perception process is so automatic that we are almost never aware that it’s happening. Yet it goes on all the time in organizations. Indeed, other people—whether they’re bosses, coworkers, subordinates, family, or friends—can have profound effects on us. Understanding the people around us—to figure out who they are and why they do what they do—may be very helpful. After all, you wouldn’t want to ask your boss for a raise when you believe he or she is in a bad mood! Clearly, social perception is very important in organizations, which is why we examine it so carefully in this chapter.1 Specifically, we explore various aspects of the social perception process in the sections that follow. To begin, we describe the attribution process—that is, the way people come to judge the underlying causes of others’ behavior. Then we will note various imperfections of this process, errors and sources of bias that contribute to inaccurate judgments of others—as well as ways of overcoming them. Finally, we will highlight specific ways in which the attribution process is used in organizations. Before getting to this, however, we first turn our attention to an even more basic matter—understanding who we are. Social Identity: Who Am I? How would you answer if someone asked, “Who are you?” There are many things you could say. For example, you could focus on individual characteristics, such as your appearance, your personal- ity, and your special skills and interests—that is, your personal identity. You also could answer in
- 306. terms of the various groups to which you belong, saying, for example, that you are a student in a particular organizational behavior class, an employee of a certain company, or a citizen of a certain country—that is, your social identity. The conceptualization known as social identity theory recognizes that the way we perceive others and ourselves is based on both our unique characteristics (i.e., personal identity) and our membership in various groups (i.e., social identity).2 For an overview of this approach, see Figure 3.1. Social identity theory claims that the way we identify ourselves is likely to be based on our uniqueness in a group. Say, for example, that you are the only business major in an English class. In this situation, you will be likely to identify yourself as “the business major,” and so too will social perception The process of combining, integrating, and interpreting information about others to gain an accurate understanding of them. attribution The process through which individuals attempt to determine the causes behind others’ behavior. personal identity The characteristics that define a particular individual.
- 307. social identity Who a person is, as defined in terms of his or her membership in various social groups. social identity theory A conceptualization recognizing that the way we perceive others and ourselves is based on both our unique characteristics (see personal identity) and our membership in various groups (see social identity). 104 PART 2 • BASIC HUMAN PROCESSES PERSONAL IDENTITY (my characteristics) Who am I? SOCIAL IDENTITY (groups to which I belong) Compared to... Other
- 308. individuals Members of other groups I am 6 feet tall I am outgoing I am interested in sports I am an American I am an employee of XYZ Company I am a student at Big State University FIGURE 3.1 Social Identity Theory: An Overview According to social identity theory, people identify themselves in terms of their individual characteristics and their own group memberships. They then compare themselves to other individuals and groups to help define who they are, both to themselves
- 309. and others. others come to recognize you as such. In other words, that will become your identity in this particular situation. Because we belong to many groups, we are likely to have several unique aspects of ourselves to use as the basis for establishing our identities (e.g., you may be the only left-handed person, the only one to have graduated college, or even the only one to have sung in a rock band). How do we know which particular bases for defining our personal identities people will choose? Given the natural desire to perceive ourselves positively and to get others to see us positively as well, we are likely to identify ourselves with groups we believe are perceived positively by others. We know, for example, that people in highly regarded professions, such as doctors, are more inclined to identify themselves with their professions than those who have lower-status jobs.3 They enjoy the benefits of being associated with professions that are highly regarded because the esteem of being a member of that profession rubs off on them and those who associate with them. As a result, people who don’t know someone but who know that he or she is a member of a positively regarded profession are likely to think positively of this indi- vidual. Not surprisingly, a friend introducing you to his or her spouse might be more inclined to indicate the person’s profession when it is highly regarded but avoid mentioning it when it is not as impressive. For example, when introducing you to her spouse, the doctor, someone
- 310. might say, “Meet Chris, the brain surgeon,” but if the person is a janitor (an honest but less prestigious profession), she might just say, “Meet Chris,” without mentioning his profession. People also have a tendency to associate themselves with winning sports teams by wearing the colors and logos of those teams. In fact, the tendency to wear clothing that identifies oneself as a fan of a certain team depends on how successful that team has been: The better a team has performed, the more likely its fans are to sport apparel that publicly identifies them with that team, a phenomenon known as basking in reflected glory.4 This refers to the tendency for people to identify themselves with the successes of others such that those others’ successes becomes their own. By the same token, to avoid making failure a part of their identities, people do what they can to dissociate themselves with individuals or teams that have lost. This phenomenon is known as cutting off reflected failure.5 For some interesting research findings illustrating these phenomena in a political context, see Figure 3.2.6 In addition to explaining how we perceive ourselves, social identity theory also explains how we come to perceive others. Specifically, the theory explains that we focus on the differences between ourselves and other individuals as well as members of other groups (see the lower portion of Figure 3.1). In so doing, we tend to simplify things by assuming that people in different groups share certain qualities that make them different from us—even if they really are not so different after all.
- 311. basking in reflected glory The tendency for people to identify themselves with the successes of others such that those others’ success becomes their own. cutting off reflected failure The tendency for people to avoid making failure part of their identities by dissociating themselves from individuals or teams that have lost. CHAPTER 3 • PERCEPTION AND LEARNING: UNDERSTANDING AND ADAPTING TO THE WORK ENVIRONMENT 105 FIGURE 3.2 Basking in the Reflected Glory of a Newly Elected President To support political candidates they favor, people often display signs on their property. Just how soon after an election they remove those signs depends on whether their preferred candidates won or lost. A study conducted immediately after the 2008 presidential election in the United States found that people continued to display signs for Barack Obama, the winner, significantly longer than signs for John McCain, the loser (an average of 4.87 days versus 2.97 days). This allowed Obama supporters to bask in the reflected glory of their candidate’s historic victory, strengthening their
- 312. identification with the president-elect. Source: Data reported by Miller, 2009; see Note 5. Not only do we perceive others as being different from ourselves, but we also perceive them as being different in negative ways. This is particularly so when we are competing against them (see Chapter 11). Take athletic competitions, for example. If you’ve ever heard the negative things that students from one college or university say about those from their archrivals in sports (or maybe even said them), then you know this phenomenon quite well. Although such statements are likely to be groundless, we generally find it comforting to believe them nonetheless. The explanation is simple. Making such categorizations helps bring order to the world. After all, distinguishing between “the good guys” and “the bad guys” makes otherwise complex judgments quite simple. And bringing simplicity to a complex world is what social perception is all about. The Attribution Process: Judging the Causes of Others’ Behavior A question we often ask about others is “why?” Why did Kirsten not return my call? Why did Michael goof up the order? Why did the company president create the policy she did? When we ask such questions, we are attempting to get at two different types of information: (1) What is C hr is
- 313. F itz ge ra ld /C an di da te /P ho to s/ N ew sc om . 106 PART 2 • BASIC HUMAN PROCESSES Act (what someone does)
- 314. Disposition (what someone is like) Clumsy Description Example Observe someone fall off a ladder Correspondent inference Assume that person is ... FIGURE 3.3 Correspondent Inferences: Judging Dispositions Based on Behavior One of the ways in which we come to judge what others are like is by making inferences about them that follow from what we have observed of their behavior. Such judgments, known as correspondent inferences, are frequently misleading. How might the inference summarized here be inaccurate? someone really like? (That is, what traits and characteristics does he or she possess?) (2) What made the person behave as he or she did? (That is, what accounted for his or her actions?) As we will see, people attempt to answer these questions in different ways.7 Making Correspondent Inferences: Using Acts to Judge Dispositions
- 315. Situations frequently arise in organizations in which we want to know what someone is like. Is your opponent a tough negotiator? Are your coworkers prone to be punctual? The more you know about what people are like, the better equipped you are to know what to expect and how to deal with them. How then, do we go about identifying another’s traits? The simple answer is that we learn about others by observing their behavior and then inferring their traits from this information. The judgments we make about what someone is like based on what we have observed about him or her are known as correspondent inferences.8 Simply put, correspondent inferences are judgments about people’s dispositions, their traits and characteristics, that correspond to what we have observed of their actions (see Figure 3.3). CHALLENGES IN JUDGING OTHERS ACCURATELY. At first blush, it would appear to be a simple matter to infer what people are like based on their behavior. A person with a disorganized desk may be perceived as sloppy. Someone who slips on the shop floor may be considered clumsy. Such judgments might be accurate, but not necessarily. After all, the messy desk actually may be the result of a coworker rummaging through it to find an important report. Similarly, the person who slipped could have encountered oily conditions under which anyone, even the least clumsy individual, would have fallen. In other words, it is important to recognize that the judgments we make about someone may be inaccurate because there are many possible causes of his or her behavior. Someone’s underlying characteristics certainly may
- 316. play a large role in determining what he or she does, but as we will explain in the next section, it also is possible for behavior to be shaped by external forces (in our examples, these would be the coworker’s actions and the slippery floor.) For this reason, correspondent inferences may not always be accurate. Correspondent inferences also might not be accurate because people on the job tend to conceal some of their traits—especially those likely to be viewed as negative. So, for example, a sloppy individual may work hard in public to appear to be organized. Likewise, the unprincipled person may talk a good show about the importance of being ethical. In other words, people often do their best to disguise some of their negative traits. In summary, because behavior is complex and has many different causes, and because people sometimes purposely disguise their true char- acteristics, correspondent inferences may not always be accurate. MAKING ACCURATE INFERENCES ABOUT OTHERS. Despite such difficulties, we can use several techniques to help make more accurate correspondent inferences. First, we can focus on others’ behavior in situations in which they do not have to behave in a pleasant or socially acceptable manner. For example, anyone would behave in a courteous manner toward the president of the company, so when people do so, we don’t learn too much about them. correspondent
- 317. inferences Judgments about people’s dispositions, their traits and characteristics, that correspond to what we have observed of their actions. CHAPTER 3 • PERCEPTION AND LEARNING: UNDERSTANDING AND ADAPTING TO THE WORK ENVIRONMENT 107 However, only those who are really courteous would be expected to behave politely toward someone of much lower rank—that is, someone toward whom they don’t have to behave politely. In other words, someone who is polite toward the company president, but condescending toward a secretary, is probably really arrogant. The way people behave in situations in which a certain behavior is not clearly expected of them may reveal a great deal about their basic traits and motives. Similarly, we can learn a great deal about someone by focusing on behavior for which there appears to be only a single logical explanation. For example, imagine finding out that your friend accepts a new job. Upon questioning him, you learn that the position is very high paying, involves interesting work, and is in a desirable location. What have you learned about what’s important to your friend? Not too much. After all, any of these are good reasons to consider taking a position. Now, imagine finding out that the work is very demanding and
- 318. that the job is in an undesirable location, but that it pays very well. In this case, you’re more prone to learn something about your friend—namely, that he highly values money. Clearly, the opportunity to make accurate corre- spondent inferences about people is far greater in situations in which there is only one plausible explanation for their behavior than when there are several. Causal Attribution of Responsibility: Answering the Question “Why?” Imagine finding out that your boss just fired one of your fellow employees. Naturally, you’d ask yourself, “Why did he do that?” Was it because your coworker violated the company’s code of conduct? Or was it because the boss is a cruel and heartless person? These two answers to the question “why?” represent two major classes of explanations for the causes of someone’s behavior: � Internal causes of behavior—explanations based on actions for which the individual is responsible � External causes of behavior—explanations based on situations over which the individual has no control In our example, the internal cause would be the person’s violation of the rules, and the external cause would be the boss’s cruel and arbitrary behavior. Generally speaking, it is very important to be able to determine whether an internal or an exter- nal cause was responsible for someone’s behavior. Knowing why something happened to someone
- 319. else might help you prepare for something similar happening to you. For example, in this case, if you believe that your colleague was fired because of something for which she was responsible her- self, such as violating a company rule, then you might not feel vulnerable because this is something you would not do. However, if you thought she was fired because of the arbitrary, spiteful nature of your boss then you might become the next victim. In this case, you might decide to take some precautionary actions, to do something to protect yourself from your boss, such as staying on his good side, or even giving up and finding a new job—before you are forced to do so. KELLEY’S THEORY OF CAUSAL ATTRIBUTION. When it comes to social perception, the question of interest to social scientists is: How do people go about judging whether someone’s actions were caused by internal or external causes? An answer to this question is provided by Kelley’s theory of causal attribution. According to this conceptualization, we base our judgments of internal and external causality on observations we make with respect to three types of information.9 These are as follows: � Consensus—the extent to which other people behave in the same manner as the person we’re judging. If others do behave similarly, consensus is considered high; if they do not, consensus is considered low. � Consistency—the extent to which the person we’re judging acts the same way at other
- 320. times. If the person does act the same at other times, consistency is high; if he or she does not, then consistency is low. � Distinctiveness—the extent to which a person behaves in the same manner in other contexts. If he or she behaves the same way in other situations, distinctiveness is low; if he or she behaves differently, distinctiveness is high. According to the theory, after collecting this information, we combine what we have learned to make our attributions of causality. Here’s how. If we learn that other people act like internal causes of behavior Explanations based on actions for which the individual is responsible. external causes of behavior Explanations based on situations over which the individual has no control. Kelley’s theory of causal attribution The approach suggesting that people will believe others’ actions to be caused by internal or external factors based on three types of information: consensus, consistency,
- 321. and distinctiveness. consensus In Kelley’s theory of causal attribution, information regarding the extent to which other people behave in the same manner as the person we’re judging. consistency In Kelley’s theory of causal attribution, information regarding the extent to which the person we’re judging acts the same way at other times. distinctiveness In Kelley’s theory of causal attribution, information regarding the extent to which a person behaves in the same manner in other contexts. 108 PART 2 • BASIC HUMAN PROCESSES this one (consensus is high), this person behaves in the same manner at other times (consistency is high), and that this person does not act in the same manner in other situations (distinctiveness is high), we are likely to conclude that this person’s behavior stemmed from external causes.
- 322. In contrast, imagine learning that other people do not act like this one (consensus is low), this person behaves in the same manner at other times (consistency is high), and that this person acts in the same manner in other situations (distinctiveness is low). In this case, we would conclude that this person’s behavior stemmed from internal causes. AN EXAMPLE. Because this explanation is highly abstract, let’s consider an example to illustrate how the process works. Imagine that you’re at a business lunch with several of your company’s sales representatives when the sales manager makes some critical remarks about the restaurant’s food and service. Further imagine that no one else in your party acts this way (consensus is low), you have heard the sales manager say the same things during other visits to the restaurant (consistency is high), and that you have seen her acting critically in other settings, such as the regional sales meeting (distinctiveness is low). What would you conclude in this situation? Probably that she is a “picky” person, someone who is difficult to please. In other words, her behavior stems from internal causes. Now, imagine the same setting but with different observations. Suppose that several other members of your group also complain about the restaurant (consensus is high), that you have seen this person complain in the same restaurant at other times (consistency is high), but that you have never seen her complain about anything else before (distinctiveness is high). By contrast, in this case, you probably would conclude that the restaurant really is inferior. In this case, the sales manager’s behavior stems from external causes. For a summary
- 323. of these contrasting conclusions, see Figure 3.4. Perceptual Biases: Systematic Errors in Perceiving Others Computers may analyze information in an accurate, unbiased, tireless fashion, but the same cannot be said about human beings. We are far from perfect when it comes to gathering information about others and then making judgments about them. In fact, it is more likely to be the rule than the exception that our judgments of others will be imperfect. After all, we are not exactly unbiased in the judgments we make. As you might imagine, this can lead to serious problems for individuals and the organizations in which they work. In this section, we explore this state of affairs in some detail. No one else complains (consensus is low) This person always complains in this restaurant (consistency is high) This person also complains in other settings (distinctiveness is low) She complained because she is difficult to please (internal attribution) This person always
- 324. complains in this restaurant (consistency is high) This person does not complain in other settings (distinctiveness is high) She complained because the restaurant is terrible (external attribution) You conclude that . . .You observe an individual complaining about the food, service, and decor in a restaurant.To answer "Why?" you note that . . . Several others also complain (consensus is high) + + + + FIGURE 3.4 Kelley’s Theory of Causal Attribution: An Example In determining whether others’ behavior stems mainly from internal or external causes, we focus on the three types of information illustrated here. CHAPTER 3 • PERCEPTION AND LEARNING:
- 325. UNDERSTANDING AND ADAPTING TO THE WORK ENVIRONMENT 109 Characteristic 1 low high Characteristic 2 low high Characteristic 3 low high Characteristic 4 low high The more favorably someone is perceived on some characteristics, the more likely that individual will be perceived favorably on other characteristics, too. Characteristic N low high FIGURE 3.5 The Halo Effect: A Demonstration One manifestation of the halo effect is the tendency for people rating others to give either consistently high ratings (if the individual is generally perceived in a positive manner) or low
- 326. ratings (if the individual is generally perceived in a negative manner). Because each rating dimension is not considered independ- ently, inaccurate evaluations may result. Researchers have noted that there are several systematic biases that interfere with making completely accurate judgments of others. These reflect systematic biases in the ways we think about others in general. Collectively, these biases are referred to as perceptual biases. We consider several such biases in this section of the chapter. The Fundamental Attribution Error Despite what Kelley’s theory may imply, people are not equally predisposed to reach judgments regarding internal and external causality. Rather, they are more likely to explain others’ actions in terms of internal causes rather than external causes. In other words, we are prone to assume that others’ behavior is due to the way they are, their traits and dispositions (e.g., “she’s just that kind of person”). So, for example, we are more likely to assume that someone who shows up for work late does so because she is lazy rather than because she got caught in traffic. This perceptual bias is so strong that it has been referred to as the fundamental attribution error.10 This particular bias stems from the fact that it is far simpler to explain someone’s actions in terms of his or her traits than to recognize the complex pattern of situational factors that may have
- 327. affected their actions. As you might imagine, this tendency can be quite damaging in organiza- tions. Specifically, it leads us to assume prematurely that people are responsible for the negative things that happen to them (e.g., “he wrecked the company car because he is careless”), without considering external alternatives, ones that may be less damning (e.g., “another driver hit the car”). And this can lead to inaccurate judgments about people. The Halo Effect: Keeping Perceptions Consistent Have you ever heard someone say something like, “She’s very smart, so she also must be hard- working”? Or, “He’s not too bright, so I guess he’s lazy”? If so, then you already are aware of a common perceptual bias known as the halo effect.11 Once we form a positive impression of someone, we tend to view the things that person does in favorable terms—even things about which we have no knowledge. Similarly, a generally negative impression of someone is likely to be associated with negative evaluations of that person’s behavior. Both of these tendencies are referred to as halo effects (even the negative case, despite the fact that the word halo has positive connotations). In organizations, the halo effect often occurs when superiors rate subordinates using a formal performance appraisal form. In this context (which we will describe more fully later in this chapter), a manager evaluating one of his or her employees highly on some dimensions may assume that an individual who is so good at this particular thing also must be good at other things. The manager would then be likely to evaluate that
- 328. person highly on other dimensions (see Figure 3.5). Put differently, the halo effect may be responsible for finding high correlations between the ratings given to people on various dimensions. When this occurs, the resulting evaluations are lacking in accuracy, and the quality of the resulting evaluations is compromised. fundamental attribution error The tendency to attribute others’ actions to internal causes (e.g., their traits) while largely ignoring external factors that also may have influenced behavior. halo effect The tendency for our overall impressions of others to affect objective evaluations of their specific traits; perceiving high correlations between characteristics that may be unrelated. perceptual biases Predispositions that people have to misperceive others in various ways. 110 PART 2 • BASIC HUMAN PROCESSES
- 329. The halo effect applies not only to individuals, but to work teams as well (a topic we will discuss in Chapter 8). Consider, for example, the way we tend to bias our perceptions of the teams for which we root as sports fans. Because we desire to see our team in a favorable light, we attribute positive characteristics to it when it wins (“This is the greatest team ever”). However, if our team loses, we tend to blame the loss on the mistakes or poor performance of one particular player (“The team is still good, but that one player ruined it for us”). This is known as the team halo effect—the tendency for people to credit teams for their successes but not to hold them accountable for their failures. The team halo effect has been demonstrated clearly in an interesting study.12 In this inves- tigation, researchers asked college students to recall either a successful team experience or an unsuccessful team experience in which they had participated. They were then asked to com- plete a questionnaire indicating the extent to which they attributed that outcome to either the team as a whole or to the performance of a particular individual. The results, summarized in Figure 3.6, support the existence of the team halo effect. Specifically, whereas the team as a whole was believed to be much more responsible for good performance than for poor performance, specific team members were believed to be more responsible for poor perform- ance than for good performance. The Similar-to-Me Effect: “If You’re Like Me, You Must Be Pretty Good” Another common type of perceptual bias involves the tendency
- 330. for people to perceive more favorably others who are like themselves than those who are dissimilar. This tendency, known as the similar-to-me effect, constitutes a potential source of bias when it comes to judging other people. In fact, research has shown that when superiors rate their subordinates, the more similar the parties are, the higher the rating the superior tends to give.13 This tendency applies with respect to several different dimensions of similarity, such as similarity of work values and habits, similarity of beliefs about the way things should be at work, and similarity with respect to demographic variables (such as age, race, gender, and work experience). This effect appears to be partly the result of the tendency for people to be able to empathize and relate better to similar others and to be more lenient toward them. However, it also appears High Poor performance 3.97 4.21 5.07 5.72 Good performance Team as a whole
- 331. Individual team members Re sp on si bi lit y fo r Pe rf or m an ce Low When performance was poor, individual members were considered more responsible than the team as a whole
- 332. When performance was good, the team as a whole was considered more responsible than individual members FIGURE 3.6 Evidence for the Team Halo Effect According to the team halo effect, people tend to recognize teams more for their successes than for their failures. This effect was demonstrated in an experiment showing that people held teams much more responsible for good performance than for poor performance. When performance was poor, individual team members were considered more responsible than the team as a whole. This allowed people to continue feeling positive about the teams. Source: Based on data reported by Naquin & Tynan, 2003; see Note 12. similar-to-me effect The tendency for people
- 333. to perceive in a positive light others who are believed to be similar to themselves in any of several different ways. team halo effect The tendency for people to credit teams for their successes but not to hold them accountable for their failures. CHAPTER 3 • PERCEPTION AND LEARNING: UNDERSTANDING AND ADAPTING TO THE WORK ENVIRONMENT 111 that subordinates tend to be more trusting and confident in supervisors who they perceive as being similar to themselves than those perceived as being dissimilar.14 As a result, they may have a more positive relationship with such individuals, and this may lead superiors to judge similar subordinates more favorably. Selective Perception: Focusing on Some Things While Ignoring Others Another perceptual bias, known as selective perception, refers to the tendency for individuals to focus on certain aspects of the environment while ignoring others.15 As people, we work in complex environments in which there are many stimuli that demand our attention; it makes sense that we tend to be selective, narrowing our perceptual fields. This constitutes a bias insofar as it
- 334. limits our attention to some stimuli while heightening our attention to other stimuli. As you might imagine, this process is likely to occur in organizations. In fact, research has shown that top executives asked to indicate the functions of their organizations that contribute most strongly to its effectiveness tend to cite functional areas that matched their backgrounds.16 For example, executives whose backgrounds were in sales and marketing perceived changes in a company’s line of products and services as being most important. Similarly, those who worked previously in research and development focused more on product designs than on other issues in their perceptions of the business environment. In other words, executives tend to be affected by selective perception. That is, they give greatest attention to those aspects of the business environ- ments that match their background experiences. Keeping this tendency in mind, it is easy to understand why different people may perceive the same situations very differently. First-Impression Error: Confirming One’s Expectations Often, the way we judge someone is not based solely on how well that person performs now, but rather, on our initial judgments of that individual—that is, our first impressions. To the extent that our initial impressions guide our subsequent impressions, we have been victimized by first-impression error. As you might imagine, this error can be especially problematic in organizations, where accu-
- 335. rately judging others’ performance is a crucial managerial task. When a subordinate’s performance has improved, that needs to be recognized, but to the extent that current evaluations are based on poor first impressions, recognizing such improvement would be impossible. Likewise, inaccurate assessments of performance would result when initially good performers leave positive impres- sions that linger, even when confronted with evidence suggesting that one’s performance has dropped (for a summary, see Figure 3.7). Research suggests that the first-impression error may take very subtle forms.17 For example, in one study, corporate interviewers evaluated prospective job applicants by viewing the application blanks and test scores of prospective employees. The more highly interviewers judged the applicants based on these two criteria alone, the more positively the applicants were treated subse- quently during the interview process. In fact, candidates who made initially positive impressions were treated more positively during the interview (e.g., they were spoken to in a more pleasant interpersonal style). Thus, instead of using the interviews to gather additional unbiased informa- tion, as you would expect (and hope!), the recruiters studied appeared to use the interviews simply to confirm the first impressions they had already developed on the basis of the test scores and appli- cation blanks. This study provides clear evidence of the first- impression error in action. Because the perceptual errors we’ve discussed thus far can lead to poor judgment on the job, it’s important to consider some ways of overcoming them. For
- 336. some recommendations in this regard, see the suggestions in Table 3.1. Although some of these guidelines may be difficult to follow, they can help the many forms of perceptual errors we’ve discussed thus far. As such, the effort required to put them into practice promises to be well worthwhile. Self-Fulfilling Prophecies: The Pygmalion Effect and the Golem Effect In case it already isn’t apparent just how important perceptions are in the workplace, consider the fact that the way we perceive others actually can dictate how effectively people will work. Put differently, perceptions can influence reality! This is the idea behind what is known as the self-fulfilling prophecy—the tendency for someone’s expectations about another to cause that individual to behave in a manner consistent with those expectations. selective perception The tendency to focus on some aspects of the environ- ment while ignoring others. first-impression error The tendency to base our judgments of others on our initial impressions of them. self-fulfilling prophecy The tendency for someone’s expectations about another to cause that person to
- 337. behave in a manner consis- tent with those expectations. This can be either positive (see the Pygmalion effect) or negative (see the Golem effect) in nature. 112 PART 2 • BASIC HUMAN PROCESSES TABLE 3.1 Suggestions for Overcoming Bias in Social Perception Biases in social perception are inevitable. Fortunately, however, there are things we can do to reduce their impact. Here are several guidelines to follow to help you perceive others more accurately in the workplace. We realize that many of these tactics are far easier to say than to do. However, to the extent that we conscientiously try to apply these suggestions to our everyday interactions with others in the workplace, we stand a good chance of perceiving people more accurately. Suggestion Explanation Do not overlook the external causes of others’ behavior. The fundamental attribution error leads us to discount the possibility that people’s poor performance may be due to conditions beyond their control. To combat this, ask yourself if anyone else might have
- 338. performed just as poorly under the same conditions. If the answer is yes, then you should not automatically assume that the poor performer is to blame. Evaluate people based on objective factors. The more objective the information you use to judge others, the less your judgments will be subjected to perceptual distortion. So, whenever possible, judge work performance more on objective measures of quantity (e.g., sales volume) and quality (e.g., error rate) than on subjective, personal judgments. Avoid making rash judgments. It is human nature to jump to conclusions about people, but when you can, take the time to get to know people better before judging them. What you learn may make a big difference in your opinion. excellent Initial Performance Quality of Actual Work Performed poor excellent
- 339. Current Performance TIME TIME poor excellent Initial Impression Evaluation of Work Performed poor excellent Current Impression poor Current impression matches initial impression Current impression does not match current performance FIGURE 3.7 First-Impression Error: A Summary When a first-impression error is made, the way we evaluate someone is more highly influenced by our initial
- 340. impressions of that person than by his or her current performance. In this example, someone who was initially perceived as performing well continues to be rated highly despite a downturn in performance. Self-fulfilling prophecies can take both positive and negative forms. In the positive case, holding high expectations of another tends to improve that individual’s performance. This is known as the Pygmalion effect. This effect was demonstrated in a study of Israeli soldiers who were taking a combat command course.18 The four instructors who taught the course were told that certain trainees had high potential for success, whereas the others had either normal potential Pygmalion effect A positive instance of the self-fulfilling prophecy, in which people holding high expectations of another tend to improve that indi- vidual’s performance. CHAPTER 3 • PERCEPTION AND LEARNING: UNDERSTANDING AND ADAPTING TO THE WORK ENVIRONMENT 113 General case of self-fulfilling prophecy Pygmalion
- 341. effect Golem effect Managers form expectations of workers Positive expectations Negative expectations Managers behave consistently with expectations Emotional and professional support given Emotional and professional support withheld Managers’ behavior affects workers Added experience and
- 342. boosted confidence Limited experience and lowered confidence Workers respond to how they were treated by managers Good performance Poor performance FIGURE 3.8 The Self-Fulfilling Prophecy: A Summary The processes underlying the self-fulfilling prophecy are summarized here. As indicated, it may produce positive effects (known as the Pygmalion effect) or negative effects (known as the Golem effect). or an unknown amount of potential. In reality, the trainees identified as belonging to each of these categories were assigned to that condition at random. Despite this, trainees who were believed to have high potential were found at the end of the training session to be more successful (e.g., they had higher test scores). This demonstrates the Pygmalion effect: Instructors who expected their trainees to do well found that the trainees actually did so.
- 343. Researchers also have found that the self-fulfilling prophecy works in the negative direction— that is, low expectations of success lead to poor performance. This is known as the Golem effect. Illustrating the Golem effect, researchers have found that Israeli paratroopers whose instructors expected them to perform poorly in their training class did, in fact, perform worse than those about whom instructors had no advance expectations.19 Clearly, this effect can be quite devastating, but fortunately, it can be overcome. A study compared the performance of two groups of female military recruits enrolled in a special training program for Israeli soldiers whose limited schooling and mental test scores made them unlikely to succeed in the military.20 Platoon leaders in the experimental group were told, “You will be training recruits whose average ability is significantly higher than usual for special recruits” and “you can expect better than average achievement from the recruits in your platoon.” Leaders of the control group were not given any such information, and their recruits performed poorly, as expected. However, the Pygmalion effect was found in the experimental group, sug- gesting that even those who are expected to perform poorly can be kept from doing so if their trainees are led to believe that success is possible. Why do self-fulfilling prophecies, both the Pygmalion effect and the Golem effect, occur? Research into the underlying processes responsible for self- fulfilling prophecies suggests that both types of self-fulfilling prophecies operate according to the
- 344. four steps summarized in Figure 3.8.21 The lesson to be learned from research on self-fulfilling prophecies is very clear: Managers should take concrete steps to promote the Pygmalion effect and to discourage the Golem effect. When leaders display enthusiasm toward people and express optimism about each person’s poten- tial, such positive expectations become contagious and spread throughout the organization. As a case in point, consider the great enthusiasm and support that Gordon Bethune showed toward employees of Continental Airlines in 1995, when he took over as that bankrupt company’s CEO.22 It would have been easy for him to be unsupportive and to show his disappointment with the work- force, but he did just the opposite. Only a few years after Bethune was at the helm, the airline turned around to become one of the most successful carriers in the sky (merging with United Airlines in 2010). Although the changes he made to the airline’s systems and equipment helped, Golem effect A negative instance of the self-fulfilling prophecy, in which people holding low expectations of another tend to lower that individ- ual’s performance. 114 PART 2 • BASIC HUMAN PROCESSES
- 345. these things alone would not have been enough if the employees felt like failures. Indeed, Bethune’s acceptance and enthusiasm toward members of Continental’s workforce contributed greatly to giving the encouragement needed to bring the airline “from worst to first.” Stereotyping: Fitting People into Categories What comes to mind when you think about people who wear glasses? Are they studious? Eggheads? Although there is no evidence of such a connection, such images linger in many people’s minds. Of course, this is only one example. You probably can think of many other commonly held beliefs about the characteristics of people belonging to specific groups. Such statements usually take the form: “People from group X possess characteristic Y.” In most cases, the characteristics described tend to be negative. Assumptions of this type are referred to as stereotypes—beliefs that members of specific groups tend to share similar traits and are prone to behave identically. Deep down inside many of us know, of course, that not all people belonging to a specific group possess the negative characteristics with which we associate them. In other words, most of us accept that the stereotypes we use are at least partially inaccurate. After all, not all X’s are Y’s; there are exceptions (maybe even quite a few!). If so, then why are stereotypes so prevalent? Why do we use them? Why Do We Rely on Stereotypes? To a great extent the answer resides in the fact that people tend
- 346. to do as little cognitive work as possible when it comes to thinking about others.23 That is, we tend to rely on mental shortcuts. If assigning people to groups allows us to assume that we know what they are like and how they may act, then we can save the tedious work of learning about them as individuals. After all, we come into contact with so many people that it’s impractical, if not impossible, to learn everything about them we need to know. So, we rely on readily available information—such as someone’s age, race, gender, or job type—as the basis for organizing our perceptions in a coherent way. It’s simply efficient to do so. So for example, if you believe that members of group X (those who wear glasses, for exam- ple) tend to possess trait Y (studiousness, in this case), then simply observing that someone falls into category X becomes the basis for believing that he or she possesses Y. To the extent that the stereotype applies in this case, then the perception will be accurate. However, such mental shorthand often leads us to make inaccurate judgments about people. This is the price we pay for using stereotypes. The Dangers of Using Stereotypes in Organizations The problem with stereotypes, of course, is that they lead us to judge people prematurely, without the benefit of learning more about them than just the categories into which they fit (see Figure 3.9). In today’s ethnically diverse organizations, no one can afford to rely on stereotypes to judge people because they generally are groundless. Still, we all rely on stereotypes at least sometimes; their
- 347. temptation is far too great to resist. NEGATIVE ORGANIZATIONAL IMPACT: INACCURATE INFORMATION. As you might imagine, organi- zational decisions can only be as good as the accuracy of the information that goes into making them (we will discuss this in detail in Chapter 10). Because stereotypes often are inaccurate, it’s easy to imagine how using them can have detrimental effects on the kinds of judgments people make in organizations. For example, if a human resources officer believes that members of certain groups are lazy, then she purposely may avoid hiring or promoting individuals who belong to that group. That officer may believe firmly that she is using good judgment— gathering all the necessary information and listening to the candidate carefully. Still, without being aware of it, the stereotypes she holds may influence the way she judges certain individuals. If the individual in question would have been a good hire, the company loses out—and of course, so too does the individual. The result, of course, is that the fate of the individual in question is sealed in advance—not necessarily because of anything he or she may have done or said, but by the mere fact that he or she belongs to a certain group. In other words, even people who might not intend to act in a bigoted fashion still may be influenced by the stereotypes they hold. stereotype A belief that all members of specific groups share similar traits and are prone to behave identically.
- 348. CHAPTER 3 • PERCEPTION AND LEARNING: UNDERSTANDING AND ADAPTING TO THE WORK ENVIRONMENT 115 NEGATIVE INDIVIDUAL IMPACT: STEREOTYPE THREATS. It is important to note that stereotypes don’t influence only how people are perceived and treated by those who hold stereotypes, but also how members of stereotyped groups act as a result. Consider, for example, how people tend to live up to—or more properly, down to—the negative stereotypes that people hold about them. In an important study, African Americans and whites took a verbal ability test.24 Consistent with the stereotype that they are intellectually inferior (although this actually is false), the African Americans performed more poorly than the whites. But, this occurred only when the test was described as a measure of intelligence. In other words, the African Americans conformed to the stereotype. Importantly, however, when the same test was given to a comparable group of African Americans and whites, but was described in ways that suggested nothing about intelligence, both groups performed equally well. This idea—that stereotypes constrain behavior when a member of a stereotyped group is placed in a situation in which poor performance can be taken as an indication of the group’s deficiency—is the basis of what is known as a stereotype threat.25 Specifically, a stereotype threat is the uncomfortable feeling that people have when they
- 349. run the risk of fulfilling a negative stereotype associated with a group to which they belong. Apparently, individuals facing situations in which they run the risk of substantiating a negative stereotype become so fearful of performing poorly in that situation that their performance actually suffers, making it possible for them to be taken as evidence of the very stereotype that they hoped to disprove (for a summary, see Figure 3.10). Stereotype threats apply not only to African Americans, but to any group whose members are subjected to stereotypes—which, potentially, is anyone.26 In one study, for example, a stereotype threat was created in a group of white male students by telling them that the research in which they were participating was designed to determine why Asian students perform better than Caucasians on tests of mathematical ability.27 It was found that these participants performed significantly more poorly than a comparable group of white men who were not told anything about the reason for the test (i.e., a control group in which no stereotype threat was triggered). Here again, concern about substantiating the negative stereotype lowered task performance. Stereotype threats represent a key process by which stereotypes can exact stiff tolls on their victims. In some cases, the negative effects of stereotyping go beyond hurt feelings, lowered perfor- mance, and lost opportunities. Stereotyping also can be very costly to its victims financially. A study by the National Bureau of Economic Research conducted over a
- 350. 10-year period found that white women who were overweight by an average of 65 pounds earned hourly wages that were, on FIGURE 3.9 What Are These People Like? Although you don’t know these people, you may be inclined to believe certain things about them simply because of their gender and the racial and ethnic groups to which they belong. Because such beliefs, known as stereotypes, are likely to be inaccurate, basing decisions on them can be problematic in the workplace. stereotype threat The uncomfortable feeling that people have when they run the risk of fulfilling a negative stereotype associated with a group to which they belong. So m os I
- 351. m ag es /A la m y Im ag es . 116 PART 2 • BASIC HUMAN PROCESSES Performance is lower (in keeping with stereotype) when negative stereotype is identified than when not identified Yes No Negative Stereotype Identified? High Low
- 352. Pe rf or m an ce o n th e St er eo ty pe d Di m en si on Expected performance based on stereotype
- 353. FIGURE 3.10 Stereotype Threat: An Overview When members of a negatively stereotyped group are in a situation in which poor performance can be taken as an indi- cation of their group’s deficiency, they tend to substantiate the stereotype by performing poorly. The uncomfortable feeling experienced in this situation is known as a stereotype threat. Everyone is subject to experiencing stereotype threats. average, 7 percent lower than wages of their nonoverweight counterparts.28 As the scientists noted, that’s like losing the pay boost that would have been earned by a year of education or three years of work experience. Interestingly, both overweight and nonoverweight women held the same kinds of jobs and had the same levels of experience, suggesting that the lower pay of obese women reflects society’s negative stereotypes toward them. It’s fascinating to note that the same effects of weight on pay were not found among African American women. Although there may be several possible explanations for this racial difference, greater acceptance of different body types and fewer nega- tive stereotypes about obese women among African Americans
- 354. appears to be a key factor. It’s important to acknowledge that the effects of stereotyping others are not always as profound. Referring to accountants as “bean counters” and professors as “absent minded” are observations that also reflect stereotypes—ones that appear to be only mildly negative. Still, it must be cautioned that holding stereotypes of people in various groups run the risks of promoting unfair discrimination (Chapter 6), causing miscommunication (Chapter 9), and generating interpersonal conflict (Chapter 11). Given the problems associated with stereotyping, it is important to consider ways of combating it. (For a look into this issue, see the OB in Practice section on page 117.) Perceiving Others: Organizational Applications Thus far, we have identified some of the basic processes of social perception and have alluded to ways in which they are involved in organizational behavior. Now, in this section, we will make these connections more explicit. Specifically, we will describe the role of perception in two organizational activities: employment interviews and performance appraisals. Employment Interviews: Managing Impressions to Prospective Employers The desire to make a favorable impression on others is universal. In one way or another, we all do things to attempt to control how other people see us, often attempting to get them to think of us in the best light possible. This process is known as impression management.29 Generally,
- 355. impression management Efforts by individuals to improve how they appear to others. CHAPTER 3 • PERCEPTION AND LEARNING: UNDERSTANDING AND ADAPTING TO THE WORK ENVIRONMENT 117 OB in Practice A Creative Approach to Avoiding Stereotyping As you know from experience, it’s hard to refrain from stereo- typing. It comes to us automatically, and we do it unintentionally. If you have an image of a particular group in mind, you will be inclined to conjure it up whenever you encounter a member of that group. Accordingly, it would appear that stereotyping oth- ers is something about which we really cannot do too much. Research has shown, however, that stereotyping might not be as inevitable as you think.30 What, then, can be done to put the brakes on the stereotyping process? For one, this can occur when people are motivated to keep from stereotyping (e.g., because doing so threatens their images of themselves). In other words, those who really don’t want to engage in stereotyping can keep themselves from doing so. More precisely, they can keep them- selves from acting on whatever stereotypes they may have.
- 356. However, it’s also possible to ensure that stereotypical images never enter your mind in the first place. Specifically, if your thinking takes different routes, it’s possible to avoid activating stereotypes. The trick is to adopt a mind-set to “think differently.” After all, if you avoid your typical associations between groups and their stereo- typical characteristics, they are unlikely to come to mind. You might think that you can do this simply by suppressing those thoughts from consciousness. This doesn’t work, how- ever. If you intentionally try to keep a thought out of your head, you actually are making yourself even more aware of it— what scientists refer to as making it hyperaccessible. To do this you would have to think about the very thing you want to avoid, which makes you think of it even more. This is known as the rebound effect. So, forcing stereotypes out of your mind isn’t going to help. There’s another approach, however. Instead of intentionally trying to avoid stereotypes, actually thinking differently by attempting to be creative (see Chapter 14)—or even thinking about times you were creative—can eliminate triggers of the well-established connections on which stereotypical thoughts are based. Research has found that people who were asked to think of various creative things they did over the years were signifi- cantly less inclined to describe members of various groups in stereotypical ways than were others who were not asked to think about their own creativity.31 Scientists take this as an indication that focusing on “thinking differently” helps people overcome
- 357. the automatic activation of stereotypes. In other words, adopting the mind-set to “think differently” interferes with the kind of thinking required to trigger stereotypes (which, of course, tend to be well ingrained). This raises an important and provocative question: What can be done to discourage stereotyping in the workplace? The answer isn’t easy, of course. In keeping with the rebound effect, simply telling yourself not to engage in stereotyping isn’t going to work. However, keeping yourself thinking creatively, taking different approaches to things in the work you do, is likely to keep your mind from letting those stereotypes come to aware- ness. This is a fragile process, as you might imagine, because— again, as per the rebound effect—as soon as you catch yourself thinking that you are fighting stereotypes, you are likely to become more aware of them. Although this notion hasn’t yet been tested in the work- place, it would seem that adopting the “think differently” mind- set on a regular basis might not be such a bad idea. For people whose jobs permit creative thinking, and for individuals who are capable of pulling it off, it just may keep stereotypes from enter- ing into your mind. If your focus on thinking differently doesn’t make you any more stereotype-resistant than those around you, then at least your efforts stand to make you more creative, and that can’t hurt (again, see Chapter 14). rebound effect The tendency to think about something when you try intentionally not to think about it.
- 358. individuals devote considerable attention to the impressions they create in the eyes of others— especially when these others are important, such as prospective employers. The impressions prospective employers form of us may be based on subtle behaviors, such as how we dress and speak, or more elaborate acts, such as announcing our accomplishments (see Figure 3.11).32 They may be the result of calculated efforts to get others to think of us in a certain way, or they may be the passive, unintended effects of our actions. When it comes to the employment interview, for example, there are several things job candi- dates commonly do to enhance the impressions they make. In an interesting study, researchers audiotaped interviews between college students looking for jobs and representatives of compa- nies that posted openings at their campus’ job placement centers.33 The various statements made by the candidates were categorized with respect to the impression management techniques they used. Several tactics were commonly observed. Table 3.2 lists these specific tactics, gives an example of each, and shows the percentage of candidates who used these techniques. Interestingly, the most common technique was self-promotion, flatly asserting that one has certain desirable characteristics. In this case, candidates commonly described themselves as being hardworking, interpersonally skilled, goal-oriented, and effective as leaders.
- 359. Importantly, the study also found that candidates used these impression management techniques with great success. The more they relied on these tactics, the more positively they were viewed by 118 PART 2 • BASIC HUMAN PROCESSES TABLE 3.2 How Do Job Applicants Present Themselves Favorably? Researchers have systematically recorded and categorized what job applicants say to present themselves favorably to recruiters interviewing them. Here is a list of techniques found during one study along with the percentages of participants using them. Descriptions and examples of each technique are given as well. Impression Management Technique Description Percentage Using Technique Self-promotion Directly describing oneself in a positive manner for the situation at hand (e.g., “I am a hard worker”). 100 Personal stories Describing past events that make oneself look good (e.g., “In my old job, I worked late anytime it was needed”). 96
- 360. Opinion conformity Expressing beliefs that are assumed to be held by the target (e.g., agreeing with something the interviewer says). 54 Entitlements Claiming responsibility for successful past events (e.g., “I was responsible for the 90 percent sales increase that resulted”). 50 Other enhancement Making statements that flatter, praise, or compliment the target (e.g., “I am very impressed with your company’s growth in recent years”). 46 Enhancements Claiming that a positive event was more positive than it really was (e.g., “Not only did our department improve, it was the best in the entire company”). 42 Overcoming obstacles Describing how one succeeded despite obstacles that should have lowered performance (e.g., “I managed to get a 3.8 grade point average although I worked two part-time jobs”). 33 Justifications Accepting responsibility for one’s poor performance but denying the negative
- 361. implications of it (e.g., “Our team didn’t win a lot, but it’s just how you play the game that really matters”). 17 Excuses Denying responsibility for one’s actions (e.g., “I didn’t complete the application form because the placement center ran out of them”). 13 Source: Based on information in Stevens & Kristof, 1995; see Note 33. FIGURE 3.11 Dressing for Success Requires Dressing for the Job It’s important for employees to make favorable impressions on their coworkers by wearing the clothing expected of them on the job. At many offices today, this consists of “business casual” attire. But at most high-tech companies such as Google, dress is extremely casual. At the same time, a T-shirt and jeans would make an unfavorable impression in the executive suite, where the classic business suit remains standard attire. The most positive impressions may be made by dressing in the manner considered appropriate for the job. Z um a W
- 362. ir e W es t P ho to s/ N ew sc om . CHAPTER 3 • PERCEPTION AND LEARNING: UNDERSTANDING AND ADAPTING TO THE WORK ENVIRONMENT 119 FIGURE 3.12 A Performance Appraisal We Wouldn’t Like to See Performance appraisals are supposed to be unbiased, objective, and focused on both the positive and negative aspects of an employee’s job performance. If this is the positive, we shudder to think what the negative might be.
- 363. the interviewer along several important dimensions (e.g., fit with the organization). This study not only confirms that job candidates do indeed rely on impression management techniques during job interviews, but also that these cultivate the positive impressions desired. With this in mind, the job interview may be seen as an ongoing effort on behalf of candidates to present themselves favorably, and for interviewers to try to see through those attempts, trying to judge candidates accurately. As the evidence suggests, this task may not be as simple as it seems. Performance Appraisal: Formal Judgments About Job Performance One of the most obvious instances in which social perception occurs is when someone formally evaluates the job performance of another. This process, known as performance appraisal, may be defined as the process by which people (typically superiors) evaluate the performance of others (typically subordinates), often on an annual or semiannual basis, usually for purposes of determin- ing raises, promotions, and training needs.34 Ideally, this process should be completely rational, leading to unbiased and objective judg- ments about exactly how well each employee performed his or her job, focusing on both strengths and areas needing improvement (see Figure 3.12). However, based on what we have said about perception thus far, you’re probably not surprised to learn that the performance evalu- ation process is far from objective. Indeed, people have a limited capacity to process, store, and retrieve information, making them prone to bias when it comes to evaluating others.35
- 364. Several such biases have been observed by researchers. For example, it has been found that people’s ratings of others’ performance depends on the extent to which that performance is consistent with the rater’s initial expectations. Researchers in one study, for example, asked bank managers to indicate how well they expected their newest tellers to perform their jobs.36 Then, four months later, they were asked to rate the tellers’ actual job performance. It was found that managers gave higher ratings to those tellers whose performance matched their earlier expectations than to those who did either better or worse than predicted. These effects are unsettling because they suggest that the improved performance of some employees may go unrecognized—or, worse yet, be downgraded! Of course, to the extent that human resource management decisions are made on the basis of several sources of information, besides judgments by a single superior, it is unlikely that such biased judg- ments will go uncorrected. Nevertheless, these findings clearly underscore a key point: Perceptions are based not only on the characteristics of the person being perceived, but the perceiver as well. This conclusion is supported by research showing several different attribution biases in evalu- ations of job performance. Consider, for example, research illustrating how the similar-to-me effect operates in a performance appraisal situation. A study conducted at a bank, for example, has shown that the more tellers do things to cultivate positive impressions on their superiors (e.g., do favors for them, agree with their opinions), the more the superiors view those tellers as being similar to
- 365. themselves. And, the more similar they are believed to be, the more highly the superiors evaluated their work.37 performance appraisal The process of evaluating employees on various work-related dimensions. G ra nt la nd E nt er pr is es /W . G ra nt B ro w
- 366. nr ig g. 120 PART 2 • BASIC HUMAN PROCESSES As you might imagine, employees often attempt to make themselves look good to superiors by offering explanations of their work that focus on the internal reasons underlying their good performance and the external reasons underlying their poor performance. Indeed, two equally good performers are unlikely to receive the same performance ratings when different attributions are made about the underlying causes of their performance. Managers tend to give higher ratings to individuals whose poor performance is attributed to factors outside those individuals’ control (e.g., someone who is trying hard, but is too inexperienced to succeed) than to those whose poor performance they attribute to internal factors (e.g., those who are believed to be capable, but who are just lazy and holding back). In other words, our evaluations of others’ performance are qualified by the nature of the attributions we make about that performance. Findings such as these illustrate our point that organizational performance evaluations are far from the unbiased, rational procedures one would hope to find. Instead, they represent a complex mix of perceptual biases—effects that must be appreciated and
- 367. well understood if we are to have any chance of ultimately improving the accuracy of the performance evaluation process. As you will see in Today’s Diverse and Global Organizations above, cultural differences in the performance appraisal process complicate things further. Learning: Adapting to the World Around Us Thus far in this chapter we have focused on perception, one of the basic human psychological processes most actively involved in explaining behavior in organizations. However, another process is equally important—learning. After all, learning is involved in a broad range of organizational behaviors, ranging from developing new vocational skills, through changing the way people do their jobs, to managing them in ways that foster the greatest productivity. Not surprisingly, the more Today’s Diverse and Global Organizations Performance Evaluations in the United States and Japan Beyond individual biases that make the process of evaluating work performance inherently imprecise, widespread cultural dif- ferences also are likely to make a big difference when it comes to performance appraisal. In other words, the way people tend to evaluate others’ work is likely to be influenced by the nations from which they come.38 This shouldn’t be too surprising if you consider that people from various countries differ with respect to several key variables involved in the performance appraisal process, such as how willing people are to be direct with others
- 368. and how sensitive they are to differences in status. This point is illustrated clearly by comparing American and Japanese compa- nies with respect to the performance appraisal practices they use. Although direct supervisors are likely to conduct appraisals in both countries, the ways they go about doing so are very different in several key respects. For example, the American worker’s job performance typically is appraised annually. However, in Japan, judgments of how effectively a worker is developing on the job usually occur monthly. Then, an overall evaluation of performance effectiveness is given only after a long time has passed— usually 12 years—making it possible for a highly meaningful assessment to occur. Although this may make little sense in the United States, where long-term commitments to companies are atypical, this approach is possible in Japan, where employees and companies tend to be highly loyal to each other, and where loyalty is rewarded by lifetime employment and regular promotion.39 (Recently, however, economic problems have been bringing this tradition to an end.) The United States and Japan differ as well in terms of precisely how performance appraisals are conducted. In the United States, companies almost always rely on an official form to provide a precise written record of a supervisor’s evaluation. In Japan, however, such directness would be considered inappro- priate, and comments about performance are presented orally in a very subtle manner. In keeping with their bluntness, Americans
- 369. generally are not reluctant to rebut (or, at least, to ask questions about) the judgments made about them. However, very few Japanese employees would consider challenging their supervi- sors so overtly, politely accepting their supervisors’ judgments. Finally, in the United States, it is almost always the individual worker who is evaluated. In Japan, however, the group or work team tends to be judged as a whole. This reflects the fact that Japanese society generally values collective efforts—people pitching in to work together is what matters most. Americans, by contrast, tend to be far more concerned about their individual performance and their individual rewards.40 Although you may find these differences to be interesting curiosities, Americans doing business in Japan and Japanese people doing business in the United States widely recognize the importance of such differences. Indeed, the willingness of American managers from American Airlines and Japanese man- agers from Japan Airlines to understand what it takes to appraise one another’s work was considered a key factor in the 2010 decision of these airline giants to form a joint venture (we discuss joint ventures more fully in Chapter 16).41 CHAPTER 3 • PERCEPTION AND LEARNING: UNDERSTANDING AND ADAPTING TO THE WORK ENVIRONMENT 121 a company fosters an environment in which employees are able to learn, the more productive and profitable that organization is likely to be.42 Naturally, scientists in the field of OB are extremely interested in understanding the process of learning—both how it
- 370. occurs and how it may be applied to the effective functioning of organizations. Before turning attention to these matters, we first explain exactly what is meant by learn- ing. Specifically, learning is defined as a relatively permanent change in behavior occurring as a result of experience.43 Despite its simplicity, several aspects of this definition bear pointing out. First, it’s clear that learning requires that some kind of change occur. Second, this change must be more than just temporary. Finally, it must be the result of experience—that is, contin- ued contact with the world around us. Given this definition, we cannot say that short-lived performance changes on the job, such as those due to illness or fatigue, are the result of learn- ing. Like so many concepts in the social sciences, learning is a difficult concept for scientists to understand because it cannot be observed directly. Instead, it must be inferred on the basis of behavioral changes. Although there are several different types of learning, we will examine two that are most relevant in organizations. These are operant conditioning and observational learning. Operant Conditioning: Learning Through Rewards and Punishments Imagine you are a chef working at a catering company where you are planning a special menu for a fussy client. If your dinner menu is accepted and the meal is a hit, the company stands a good chance of picking up a huge new account. You work hard at doing the best job possible and present your
- 371. culinary creation to the skeptical client. Now, how does the story end? If the client loves your meal, your grateful boss gives you a huge raise and a promotion. However, if the client hates it, your boss asks you to turn in your chef’s hat. Regardless of which of these outcomes occur, one thing is certain: Whatever you did in this situation, you will be sure to do it again if it was successful, and to avoid doing it again if it failed. This situation nicely illustrates an important principle of operant conditioning (also known as instrumental conditioning)—namely, that our behavior produces consequences and that how we behave in the future will depend on what those consequences are. If our actions have had pleasant effects, then we will be likely to repeat them in the future. If, however, our actions have unpleasant effects, we are less likely to repeat them in the future. This phenomenon, known as the Law of Effect, is fundamental to operant conditioning. Our knowledge of this phenomenon comes from the work of the famous social scientist B. F. Skinner.44 Skinner’s pioneering research has shown us that it is through the connections between our actions and their consequences that we learn to behave in certain ways. We summarize this process in Figure 3.13. operant conditioning The form of learning in which people associate the consequences of their actions with the actions themselves. Behaviors with positive consequences are
- 372. repeated; behaviors with negative consequences are avoided. instrumental conditioning See operant conditioning. Law of Effect The tendency for behaviors leading to desirable conse- quences to be strengthened and those leading to unde- sirable consequences to be weakened. If consequences are positive, the behavior is repeated Employee performs job properly in the future Antecedents (conditions leading up to the behavior) Steps in the operant conditioning process Behavior (activity performed)
- 373. Consequences (results of the behavior) Manager shows employee how to do a job Employee performs job properly Manager praises employee Example of the operant conditioning process FIGURE 3.13 The Operant Conditioning Process: An Overview The basic premise of operant conditioning is that people learn by connecting the consequences of their behavior with the behavior itself. In this example, the manager’s praise increases the subordinate’s tendency to perform the job properly in the future. Learning occurs by providing the appropriate antecedents and consequences. learning A relatively permanent change in behavior occurring as a result of experience.
- 374. 122 PART 2 • BASIC HUMAN PROCESSES contingencies of reinforcement The various relationships between one’s behavior and the consequences of that behavior—positive reinforcement, negative reinforcement, punishment, and extinction. positive reinforcement The process by which people learn to perform behaviors that lead to the presentation of desired outcomes. avoidance See negative reinforcement. negative reinforcement The process by which people learn to perform acts that lead to the removal of undesired events. TABLE 3.3 Contingencies of Reinforcement: A Summary The four contingencies of reinforcement may be distinguished by the presentation or withdrawal of a pleasant or an unpleasant stimulus. Positively or negatively reinforced behaviors are strengthened, whereas punished or extinguished behaviors are weakened.
- 375. Stimulus Presented or Withdrawn Desirability of Stimulus Name of Contingency Strength of Response Example Presented Pleasant Positive reinforcement Increases Praise from a supervisor encourages continuing the praised behavior. Unpleasant Punishment Decreases Criticism from a supervisor discourages enacting the punished behavior. Withdrawn Pleasant Extinction Decreases Failing to praise a helpful act reduces the odds of helping in the future. Unpleasant Negative reinforcement Increases Future criticism is avoided by doing whatever the supervisor wants. The various relationships between a person’s behavior and the consequences resulting from it are known collectively as contingencies of reinforcement. They represent the conditions under which rewards and punishments either will be given or taken away. Here, we describe the four contingencies of reinforcement—positive reinforcement,
- 376. negative reinforcement, punishment, and extinction—and we summarize them in Table 3.3. As we will see later in this chapter, creating these conditions is an effective tool for managing behavior in organizations. POSITIVE REINFORCEMENT. Operant conditioning is based on the idea that behavior is learned because of the pleasurable outcomes that we associate with it. In organizations, for example, people usually find it pleasant and desirable to receive monetary bonuses, paid vacations, and various forms of recognition. The process by which people learn to perform acts leading to such desirable outcomes is known as positive reinforcement. Whatever behavior led to the positive outcome is likely to occur again, thereby strengthening that behavior. For a reward to serve as a positive reinforcer, it must be made contingent on the specific behavior sought. So, for example, if a sales representative is given a bonus after landing a huge account, that bonus will only rein- force the person’s actions if he or she associates it with the landing of the account. When this occurs, the individual will be more inclined in the future to do whatever helped get the account. NEGATIVE REINFORCEMENT (OR AVOIDANCE). Sometimes we also learn to perform acts because they permit us to avoid undesirable consequences. Unpleasant events, such as reprimands, rejec- tion, probation, and termination, are some of the consequences faced for certain negative actions in the workplace. The process by which people learn to perform acts leading to the avoidance of such undesirable consequences is known as negative
- 377. reinforcement, or avoidance. Whatever response led to the termination of these undesirable events is likely to occur again, thereby strengthening that response. For example, you may stay late at the office one evening to revise a sales presentation because you believe that the boss will “chew you out” if it’s not ready in the morning. You learned how to avoid this type of aversive situation, and you behave accordingly. PUNISHMENT. Thus far, we have identified responses that are strengthened—either because they lead to positive consequences or the termination of negative consequences. However, the connection between a behavior and its consequences is not always strengthened; such links also may be weakened. This is what happens in the case of punishment. Punishment involves presenting an undesirable or aversive consequence in response to an unwanted behavior. A behavior accompanied by an undesirable outcome is less likely to reoccur if the person asso- ciates the negative consequences with the behavior. For example, if you are chastised by your boss for taking excessively long coffee breaks, you may be considered punished for this action. As a result, you will be less likely to take long breaks again in the future. EXTINCTION. The link between a behavior and its consequences also may be weakened by with- holding reward—a process known as extinction. When a response that was once rewarded is no longer rewarded, it tends to weaken and eventually die out—or be extinguished. Let’s consider an example. Suppose for many months you brought boxes of donuts
- 378. to your weekly staff meetings. punishment Decreasing undesirable behavior by following it with undesirable consequences. extinction The process through which responses that are no longer reinforced tend to gradually diminish in strength. CHAPTER 3 • PERCEPTION AND LEARNING: UNDERSTANDING AND ADAPTING TO THE WORK ENVIRONMENT 123 Pay attention to model Remember what model did Practice model's behavior Behavior Motivated to imitate model? ObserverModel Imitate model's behavior FIGURE 3.14
- 379. Observational Learning: An Overview The process of observational learning requires that an observer pay attention to and remember a model’s behavior. By observing what the model did and rehearsing those actions, the observer may learn to imitate the model, but only if the observer is motivated to do so (i.e., if the model was rewarded for behaving as observed). Your colleagues always thanked you as they gobbled them down. You were positively reinforced by their approval, so you continued bringing the donuts. Now, after several months of eating donuts, your colleagues’ waists have begun to bulge, leading them to begin dieting. So, although tempting, your donuts go uneaten. After several months of no longer being praised for your generosity, you will be unlikely to continue bringing donuts. Your once-rewarded behavior will die out; it will be extinguished. Observational Learning: Learning by Imitating Others Although operant conditioning is based on the idea that we engage in behaviors for which we are directly reinforced, many of the things we learn on the job
- 380. are not directly reinforced. Suppose, for example, on your new job you see one of your fellow sales representatives developing a potentially valuable sales lead by joining a local civic organization. Soon there- after, talking to people around the office, you find out that yet another one of your colleagues has picked up a lucrative lead from a civic group to which he belongs. Chances are, after observing this several times, you too will eventually make the connection between joining such groups and getting sales leads. Although you may not have made useful contacts from such groups yourself, you would come to expect these leads to pan out on the basis of what you have observed from others. This is an example of a kind of learning known as observational learning, or modeling.45 It occurs when someone acquires new knowledge vicariously—that is, by observing what happens to others. The person whose behavior is imitated is referred to as the model. STEPS IN THE OBSERVATIONAL LEARNING PROCESS. For people to learn by observing models, several processes must occur (for a summary of these, see Figure 3.14). These are as follows: 1. The learner must pay careful attention to the model; the greater the attention, the more effective the learning will be. To facilitate learning, models sometimes call attention to themselves. This is what happens when supervisors admonish their subordinates to “pay close attention” to what they’re doing.
- 381. 2. People must have good retention of the model’s behavior. It helps to be able to develop a verbal description or a mental image of someone’s actions to remember them. After all, we cannot learn from observing behavior we cannot remember. 3. There must be some behavioral reproduction of the model’s behavior. Unless people are capable of doing exactly what the models do, they will not be able to learn from observing them. Naturally, this ability may be limited at first, but improve with practice. 4. Finally, people must have some motivation to learn from the model. Of course, we don’t emulate every behavior we see, but we focus on those we have some reason or incentive to match—such as actions for which others are rewarded. observational learning (modeling) The form of learning in which people acquire new behaviors by systematically observing the rewards and punishments given to others. 124 PART 2 • BASIC HUMAN PROCESSES EXAMPLES OF OBSERVATIONAL LEARNING IN ORGANIZATIONS. A great deal of what is learned about how to behave in organizations can be explained as the result of the process of observational learning.46 For example, observational learning is a key part of
- 382. many formal job instruction training programs.47 As we will explain in the next section, trainees given a chance to observe experts doing their jobs, followed by an opportunity to practice the desired skills, and given feedback on their work, tend to learn new job skills quite effectively. Observational learning also occurs in a very informal, uncalculated manner. For example, people who experience the norms and traditions of their organizations and who subsequently incorporate these into their own behavior may be recognized as having learned through observa- tion. Indeed, people tend to learn the informal rules of their organizations through observational learning. It is important to note that people learn not only what to do by observing others, but also what not to do. Specifically, research has shown that people observing their coworkers getting punished for behaving inappropriately on the job tend to refrain from engaging in those same actions themselves.48 As you might imagine, this is a very effective way for people to learn how to behave—and without ever experiencing any displeasure themselves. The principles of learning we have discussed thus far are used in organizations in many differ- ent ways. In the remaining part of this chapter, we discuss formal approaches to incorporating the various principles of learning in organizations—training, and practices involving the systematic use of rewards and punishments, such as organizational
- 383. behavior management and discipline. Training: Learning and Developing Job Skills Probably the most obvious use to which principles of learning may be applied in organiza- tions is training—the process through which people systematically acquire and improve the skills and knowledge needed to better their job performance. Just as students learn basic educational skills in the classroom, employees must learn job skills. Training is used not only to prepare new employees to meet the challenges of the jobs they will face, but also to upgrade and refine the skills of existing employees. The amount of money companies spend on training varies from industry to industry (most in finance and insurance, and least in retail), but averages over $1,200 per employee.49 Although many companies trim their train- ing budgets in financially difficult times, training is an excellent investment. It has been estimated that every $1 spent on training yields $4 in increased productivity and reduced turnover.50 For an example of a company that is highly involved in training and highly successful at it, see Figure 3.15. Varieties of Training Methods Training takes many forms. Some training is quite informal in nature, consisting of having expe- rienced employees take new employees under their wings to show them how to do the job in question. Most of the time, however, training involves highly systematic, formal efforts to teach employees how to do specific things that are required for job success. We now review these
- 384. methods. CLASSROOM TRAINING. As a student, you already are familiar with classroom training. In this method, instructors describe various requirements of the job and provide tips on how to meet them. Typically, people learning new skills in the classroom are given an opportunity to practice these skills, either in a simulated work setting or on the job itself. Consider, for example, how people are trained as account representatives at the collection agency OSI. The account reps are the individuals who call consumers to arrange payment on seriously delinquent accounts. The reps receive four days of intensive classroom training, cover- ing things such as approaches to take in getting people to pay, procedures to follow when sending payments, payment programs available to the consumer, and the laws that bill collectors are required to follow. This classroom training is supplemented by making simulated practice calls in which the budding reps get to practice their new skills. Following this training, they are allowed to make actual calls, but these are closely monitored by experienced personnel who stand ready to guide the trainee as needed. classroom training The process of teaching people how to do their jobs by explaining various job requirements and how to meet them.
- 385. training The process of systematically teaching employees to acquire and improve job-related skills and knowledge. CHAPTER 3 • PERCEPTION AND LEARNING: UNDERSTANDING AND ADAPTING TO THE WORK ENVIRONMENT 125 FIGURE 3.15 And the Award for Training Goes to . . . These employees of the large accounting firm PriceWaterhouse Coopers (PWC) are shown here preparing ballots to be sent to members of the Academy of Motion Picture Arts and Sciences, whose votes will determine Oscar winners. The firm’s accountants are trained continuously to ensure they are kept abreast of changing standards and regulations as well as best practices in their industry. These efforts have been so extensive and successful that for three consecutive years (2008–2010) PWC has finished at the top of Training magazine’s “Top 125” list of companies with the best training practices. APPRENTICESHIP PROGRAMS. Growing in popularity today are formal apprenticeship programs, in which classroom training is systematically combined with on-the-job instruc- tion over a long period (often several years in the case of skilled tradespeople such as carpen- ters, electricians, and masons). Recognizing the importance of
- 386. such programs in developing human resources, the federal government has invested hundreds of millions of dollars in apprenticeship programs, encouraging training partnerships between government and private industry.51 To ensure that people going into various trades are trained to appropriately high standards, many apprenticeship programs often are designed and regulated by professional trade associations. As just one example, the American Culinary Federation has long relied on a formal apprenticeship program to ensure the proper training of future chefs. This program specifies the nature and content of classroom experiences as well as the specific areas of competence that student chefs are expected to master while working under supervising chefs in restaurant kitchens. CROSS-CULTURAL TRAINING. Today, given the increasing globalization of the workplace, it is not surprising that many companies are sending their employees to work abroad. A growing number of companies are discovering that employees are more likely to succeed in their overseas assign- ments when they have been thoroughly trained in the culture of the country in which they will be living. Sure, it helps to know the language of the host country, but that’s just the beginning. If you’ve ever lived in another country, or even visited one, for that matter, then you can appreci- ate how vital it would be to understand fully the culture of the people in any country in which you are doing business. With this in mind, many companies have been investing in cross-cultural training (CCT), a systematic way of preparing employees to live
- 387. and work in another country.52 apprenticeship programs Formal training programs involving both on-the-job and classroom training usually over a long period, often used for training people in the skilled trades. cross-cultural training (CCT) A systematic way of prepar- ing employees to live and work in another country. A FP /P ho to s/ N ew sc om .
- 388. 126 PART 2 • BASIC HUMAN PROCESSES executive training programs Sessions in which companies systematically attempt to develop their top leaders, either in specific skills or general managerial skills. Actually, CCT is not a single method, but a variety of specific training techniques that have proven effective. For a summary of some of the most effective CCT methods, see Table 3.4. CORPORATE UNIVERSITIES. Many companies (e.g., Apple Computer, Motorola, and the Walt Disney Company, to name only a few) are so serious about training that they have developed their own corporate universities—facilities devoted to handling a company’s training needs on a full-time basis.53 Established in 1927, the “General Motors Institute,” now known as “Kettering University,” was the first corporate university. This Flint, Michigan, facility trains employees in almost every skill required by GM’s worldwide employees. Among the best-known corporate universities is McDonald’s “Hamburger University,” in which McDonald’s franchisees learn and/or polish the skills needed to successfully operate a McDonald’s restaurant. Like several other companies, McDonald’s has its own campus with full-time instructors. Most corporate universities, however, offer less elaborate programs in more modest facilities
- 389. run by either their human resources departments or a few top executives. Even very small start-up companies can have their own corporate universities by using any of a growing number of firms that provide customized educational services. Although their curricula vary widely, most corporate universities emphasize leadership development (which we will address in Chapter 13). EXECUTIVE TRAINING PROGRAMS. Another popular form of training is executive training programs—sessions in which companies systematically attempt to develop the leadership skills of their top leaders.54 In fact, the largest proportion of companies’ training budgets, an average of 21 percent, falls into this category.55 Executive training can be conducted by using in-house training staff, bringing in outside experts to train company personnel, sending trainees to special- ized programs conducted by private consulting firms, or by registering them at continuing education programs offered at colleges and universities.56 With respect to content, executive training programs cover a broad range of topics, and are often tailored to the specific needs of the companies that use them and the industries in which they operate. Topics frequently covered in such programs are methods for developing leadership skills and transforming organizations, both of which are addressed throughout this book (e.g., Chapters 13 and 16). E-TRAINING. These days, because the investment in computer technology required to reach people in remote locations is so small, the vast majority of companies conducting training
- 390. do at least some of it online. The term e-training is used to describe training based on e-training Training based on dissemi- nating information online, such as through the Internet or a company’s internal intranet network. corporate universities Centers devoted to handling a company’s training needs on a full-time basis. TABLE 3.4 Summary of Techniques Used in Cross-Cultural Training (CCT) People working overseas often are trained for their assignments using one or more of the techniques described here. Given the global nature of today’s businesses, the importance of such training efforts cannot be overstated. Technique Description Cultural briefings Explain the major aspects of the host country culture, including customs, traditions, and everyday behaviors. Area briefings Explain the history, geography, economy, politics, and other general information about the host country and region. Cases Portray a real-life situation in business or personal life to illustrate some aspect
- 391. of living or working in the host culture. Role playing Allows the trainee to act out a situation that he or she might face in living or working in the host country. Culture assimilator Provides a written set of situations that the trainee might encounter in living or working in the host country. Trainee selects from a set of responses to the situation and is given feedback as to whether it is appropriate and why. Field experiences Provide an opportunity for the trainee to go to the host country or another unfamiliar culture to experience living and working for a short time. Source: Francesco, Anne Marie; Gold, Barry Allen, International Organizational Behavior: Text Readings Cases, 1st ed., © 1998. Electronically reproduced by permission of Pearson Education, Inc., Upper Saddle River, New Jersey. See Note 52. CHAPTER 3 • PERCEPTION AND LEARNING: UNDERSTANDING AND ADAPTING TO THE WORK ENVIRONMENT 127 disseminating information online (e.g., through the Internet or a company’s internal intranet network). Online training is so popular, in fact, that savvy investment companies (e.g., Chase Capital and Merrill Lynch) have been funneling tens of millions of dollars into companies
- 392. such as Ninth House and Global Learning Systems, which provide multimedia employee training.57 In recent years, many companies have found it useful to use e- training. For example, the Buffalo, New York–based Delaware North, a contract food- service company, has used e-training as an efficient way to bring employees up to speed on new operations. According to Sherri Steinback, the company’s manager of technical training and special projects, “We were rolling out a new financial application to over 125 units, and we needed an efficient way to train a diverse group scattered across the country.”58 E-training also has been used in a wide variety of different industries.59 Compared to tradi- tional, classroom-based corporate training programs, the primary benefits of online training are (1) flexibility, (2) speed and efficiency, and (3) reduced cost. Given these considerations, it’s not surprising that e-learning has been growing in popularity in recent years, comprising 20 percent of the time people spend in training activities.60 Despite these benefits, e-training is far from perfect. One problem that many companies are facing is that it is very costly for them to produce self- paced, online training materials (about six to eight times more, in many cases), which drastically cuts into any short-term sav- ings that may result. Probably the most serious limitation of e- training is that many workers are uncomfortable with it. Even the most computer-savvy employees may find it deceptively
- 393. easy to click ahead, thinking they know material that they really don’t know that well. Others simply miss the social aspect of learning, the one-on-one experience they have in the class- room with their peers and the trainer (which, for some, may be a distraction). Indeed, some experts agree that one advantage of the traditional classroom experience is that it brought peo- ple together out of the office, a benefit that the more impersonal experience of sitting in front of a computer screen just cannot offer. In view of this, online technology may best be consid- ered an adjunct to the total training package, a single tool rather than a replacement for the traditional, in-person training experience. Principles of Learning: Keys to Effective Training As you might imagine, no one approach to training is ideal. Some techniques are better suited to learning certain skills than are others. The reason for this is that various techniques incorporate different principles of learning, that is, the set of practices that make train- ing effective. Not surprisingly, the best training programs often use many different approaches, thereby assuring that several different learning principles are incorporated into training.61 To appreciate what these particular principles are, just think about some of the ways you learned skills such as how to study, drive, or use a computer. Five particular principles are most relevant. PROMOTE PARTICIPATION. People not only learn more
- 394. quickly, but also retain the skills longer when they have been involved actively in the learning process. This is the practice of participation. The benefits of participation apply to the learning of both motor tasks as well as cognitive skills. For example, when learning to swim, there’s no substitute for actually getting in the water and moving your arms and legs. In the classroom, students who listen attentively to lectures, think about the material, and get involved in discussions tend to learn more effectively than those who just sit passively. ENCOURAGE REPETITION. If you know the old adage “Practice makes perfect,” you are already aware of the benefits of repetition on learning. Perhaps you learned the multiplication table, or a poem, or a foreign language phrase by going over it repeatedly. Indeed, mentally “rehearsing” such cognitive tasks has been shown to increase our effectiveness at performing them.62 Scientists have established not only the benefits of repetition on learning, but also have shown that these effects are even greater when practice is spread over time than when it is lumped repetition The process of repeatedly performing a task so that it may be learned. principles of learning The set of practices that make training effective, such as participation,
- 395. repetition, transfer of training, and feedback. participation Active involvement in the process of learning; more active participation leads to more effective learning. 128 PART 2 • BASIC HUMAN PROCESSES active learning A collection of learner- centered techniques in which individuals are active participants in the learning process. together. After all, when practice periods are too long, learning can suffer from fatigue, whereas learning a little bit at a time allows the material to sink in. USE ACTIVE LEARNING. For learning to be most effective, learners should be involved in an active manner (e.g., by completing some exercise), instead of a passive manner (e.g., by listening to lectures only). The term active learning is used to describe a collection of learner-centered techniques in which individuals are active participants in the learning process. In this way, it is akin to “learning by doing” but goes beyond it in several key ways. Specifically, active learning techniques give people control over their learning experience. They also require learners to
- 396. explore and experiment with a task so they can figure out how to perform it themselves. Typically these techniques require learners to think carefully about the subject matter and to have emotional reactions to it. For an overview of the different techniques that fall into this category, see the summary in Table 3.5. Research has demonstrated that these techniques are quite effec- tive in many different ways.63 CAPITALIZE ON TRANSFER OF TRAINING. As you might imagine, for training to be most effective, what is learned during training sessions must be applied to the job. This is the idea of transfer of training, the degree to which training generalizes to actual work experiences. In general, the more closely a training program matches the demands and conditions faced on a job, the more effective that training will be. A good example is the elaborate simulation devices used to train pilots and astronauts. By closely simulating actual job conditions and equipment, the skills trained transfer to the job.64 GIVE FEEDBACK. Regardless of the particular type of learning used, it is extremely difficult for learning to occur in the absence of feedback—that is, knowledge of the results of one’s actions. Feedback provides information about the effectiveness of one’s training, indicating improvements that need to be made.65 For example, it is critical for people being trained as word processing operators to know exactly how many words they correctly entered per minute if they are to be able to gauge their improvement.
- 397. One type of feedback that has become popular in recent years is known as 360-degree feedback—the process of using multiple sources from around the organization to evaluate the work of a single individual (see Figure 3.16). This goes beyond simply collecting feedback from superiors, as is customary, but extends the gathering of feedback from other sources, such as one’s peers, direct reports (i.e., immediate subordinates), customers, and even oneself.66 Many companies—including General Electric, AT&T, Monsanto, Florida Power and Light, DuPont, Westinghouse, Motorola, Fidelity Bank, FedEx, Nabisco, and Warner-Lambert, to name a few—have used 360-degree feedback to give more complete performance information to their employees, greatly improving not only their own work, but overall corporate productiv- ity as well.67 TABLE 3.5 Active Learning Techniques In contrast to traditional, passive learning, active learning gets people involved in the process of learning. The techniques summarized here are among the most widely used forms of active learning used today. As you can see, these differ with respect to the degree to which the trainer gets involved in guiding the trainee. Technique Description Exploratory learning Giving people opportunities to learn by exploring and experimenting with the task at hand so they can discover how to master it completely on their own
- 398. Guided exploration Encouraging learners to explore things on their own but also helping by giving them directions to pursue that enable them to improve Error framing Instructing learners to make errors and to think about these as opportunities to learn Mastery training Encouraging learners to explore things on their own while also noting that errors are bound to occur and providing them with goals that help them master the skills involved Source: Based on information in Bell & Kozlowski, 2008; see Note 68. transfer of training The degree to which the skills learned during training sessions may be applied to performance of one’s job. feedback Knowledge of the results of one’s behavior. 360-degree feedback The practice of collecting performance feedback from multiple sources at a variety of organizational levels.
- 399. CHAPTER 3 • PERCEPTION AND LEARNING: UNDERSTANDING AND ADAPTING TO THE WORK ENVIRONMENT 129 TABLE 3.6 When Should 360-Degree Feedback Be Used? For 360-degree feedback to be used successfully, it is essential that the following conditions be met. As outlined here, failure to adhere to these “four musts” may create problems that are likely to make the technique more of a liability than an asset. For 360-Degree Feedback to Be Successful . . . Or Else, the Following Problem May Occur . . . Everyone involved must be trained carefully in how to give feedback. People may be hurt by feedback that is destructive instead of constructive. The consequences of engaging in poor performance must be spelled out clearly. People may lack motivation to perform at a high level (see Chapter 7). The behavior being measured must be essential to business success. People may focus on improving their performance in ways that don’t really matter. The information collected must be used only for appropriate purposes, such as to improve performance.
- 400. People may believe that the information shared about them constitutes a violation of their privacy. Your Customer Your Direct ReportYour Direct Report Your Peer You Your Boss Your Peer Your Customer Your Customer Your Customer feedback feedback feedback feedback fe ed ba ck fe
- 401. ed ba ck fe ed ba ck feedback FIGURE 3.16 360-Degree Feedback: An Overview Many companies rely on 360-degree feedback to provide valuable insight into how performance may be improved. As summarized here, this technique involves collecting performance feedback from multiple sources. Despite its popularity, it’s important to caution that 360-degree feedback isn’t always successful; indeed, it sometimes is misused, resulting in more harm than good. This suggests that as a tool, 360-degree feedback should not be thrown into an organization with the blind hope that it will do some good. Instead, it’s important to use this
- 402. technique only under certain circum- stances. For a summary of these conditions, see Table 3.6.68 130 PART 2 • BASIC HUMAN PROCESSES TABLE 3.7 Steps for Creating an OB Mod Program OB Mod programs involve following the five general steps listed on the left. To the right of each, an example is given of how each step might be applied to reducing accidents in a shop. Note how this involves the application of negative reinforcement. Step Example 1. Identify critical behaviors—that is, the particular behaviors you would like workers to perform. You want to prevent workers from slipping on the shop floor. 2. For each critical behavior, obtain a baseline. This involves measuring how well people perform the desired task before anything is done to change it. Count the number of times people slip on the shop floor over a typical month. 3. Analyze the behavior to determine the particular things that lead to it and that occur as a result. After reviewing accident cases, you find that people are slipping because grease is dripping from parts being carried from place to place.
- 403. 4. Using the information in step 3, develop an intervention— that is, an organizational program that seeks to raise the behavior in question by rewarding it when performed correctly. Explain the dripping grease problem to workers and institute a program in which they are rewarded for being accident-free over certain periods of time. For example, after three accident-free months they might receive “I’m Safe” badges to affix to their shop coats. Larger gifts should be given in recognition of longer accident-free periods. 5. Assess how well the program is working. Repeat the process but implement changes designed to make it more effective. Count accidents as done in step 2. If the rate has dropped, maintain the program. If not, revise it. In sum, these five principles—participation, repetition, active learning, transfer of training, and feedback—are key to the effectiveness of any training program. The most effective training programs are those that incorporate as many of these principles as possible. Organizational Practices Using Reward and Punishment Earlier, in describing operant conditioning, we noted that the consequences of our behavior determine whether we repeat it or abandon it. Behaviors that are rewarded tend to be strength- ened, repeated in the future. With this in mind, it is possible to administer rewards selectively to
- 404. help reinforce behaviors that we wish repeated in the future. This is the basic principle behind organizational behavior management. It’s also possible to influence workers’ behavior by using discipline. This, of course, involves the use of punishment, a contingency of reinforcement we described earlier. We now describe both organizational behavior management and discipline in organizations. Organizational Behavior Management When management experts refer to organizational behavior management (OB Mod, for short), they are describing the systematic application of positive reinforcement principles in organizational settings for the purpose of raising the incidence of desirable organizational behaviors.69 These programs consist of the five general steps outlined in Table 3.7, which also describes how these steps might be followed in an effort to reduce accidents in a shop. OB Mod programs have been implemented successfully at several companies, such as General Electric, Weyerhaeuser, and General Mills. At BFGoodrich, for example, an OB Mod program has been credited with productivity gains of 300 percent. However, it would be misleading to suggest that OB Mod programs are always successful. Where unsuccessful, the major problem has been a lack of support for rewarding desirable performance. This is unfortunate because some inexpensive rewards can go a long way toward bringing about desired behavioral changes. Another problem with OB Mod
- 405. programs is that their effectiveness organizational behavior management (OB Mod) The practice of altering behavior in organizations by systematically administering rewards. CHAPTER 3 • PERCEPTION AND LEARNING: UNDERSTANDING AND ADAPTING TO THE WORK ENVIRONMENT 131 tends to be short term. As people get used to the rewards, they stop being special and need to be replaced by new ones. Ultimately, one would hope that employees would continue performing the desired behaviors in the absence of rewards, but as noted earlier, extinction is a potent phenomenon. Discipline: Eliminating Undesirable Organizational Behaviors Just as organizations systematically use rewards to encourage desirable behavior, they also use punishment to discourage undesirable behavior. Problems such as absenteeism, lateness, theft, and substance abuse cost companies vast sums of money, situations many companies attempt to manage by using discipline—the systematic administration of punishment. By administering an unpleasant outcome (e.g., suspension without pay) in response to an
- 406. undesirable behavior (e.g., excessive tardiness), companies seek to minimize that behavior. In one form or another, using discipline is a relatively common practice. Most companies use some form of discipline, or at least the threat of discipline, in response to undesirable behaviors.70 As you might imagine, disciplinary actions taken in organizations vary greatly. At one extreme, they may be very formal, such as written warnings that become part of the employee’s permanent record. At the other extreme, they may be informal and low-key, such as friendly reminders and off-the-record discussions between supervisors and their problem subordinates. In a survey, nursing supervisors were asked to list the disciplinary actions they most used and to rank them with respect to their severity.71 The results, summarized in Figure 3.17, reveal that a broad range of disciplinary measures are used, ranging from most lenient to most harsh. Although this represents the responses of a limited sample, we suspect that these results are fairly typical of what would be found across a wide variety of jobs. One very common practice involves using punishment progressively—that is, starting mildly, and then increasing in severity with each successive infraction. This is the idea behind progressive discipline—the practice of basing punishment on the frequency and severity of the infraction.72 Let’s consider an example of how progressive
- 407. discipline might work for a Most Lenient Most Harsh 3. Written warning 1. Talk to employee about the problem 5. Provide special in-house services to help employee 7. Transfer employee to different department 9. Put the employee on probation 11. Suspend without pay 12. Termination10. Withhold portion of merit pay 8. Intervene in the
- 408. situation 6. Send employee to formal training to help 4. Coach employee about problem 2. Oral warning DISCIPLINARY MEASURE FIGURE 3.17 A Continuum of Disciplinary Measures Ranked from mildest to most severe, these are the most commonly used disciplinary tactics used by nursing supervisors. Source: Based on findings reported by Trahan & Steiner, 1994; see Note 71. discipline The process of systematically administering punishments. progressive discipline The practice of gradually increasing the severity of punishments for employees who exhibit unacceptable job behavior.
- 409. 132 PART 2 • BASIC HUMAN PROCESSES The Ethics Angle Principles for Using Discipline Fairly—and Effectively, Too It isn’t easy to know exactly when and how to use discipline so that it can be done in a way that people consider fair and that has been shown to be effective. Fortunately, research has pointed to several principles that can be followed in this regard.75 We now identify these, and using a running example, point out how they can be applied to a relatively common disciplinary situation: some- one (let’s call him Joe) being chronically late to work. Deliver punishment immediately after an undesirable response occurs. People’s memories are imperfect, especially when they’ve done something wrong. The more time that passes after someone does something inappropriate, the less likely he or she is to remember the details of the act in question. As such, the con- nection between the particular negative behavior and the pun- ishment will be weak. When this happens, the person being disciplined will be inclined to be unaware of what he or she did that requires punishment, leading that person to believe that the punishment is unfair and to reject the person doing the punishing as mean. The recommendation is clear: If Joe arrives at work late, discuss this with him immediately thereafter. Give moderate levels of punishment—nothing too high or too low. If the consequences for performing an undesirable action are not
- 410. very severe, it is unlikely to serve as a punishment. If they are too severe, people are likely to complain that they’re unfairly harsh. Applying this to the late-arriving Joe, you should avoid being too lenient (e.g., by rolling your eyes) or too harsh (e.g., by firing him the first time he’s a minute or two late). Punish the undesirable behavior, not the person. People’s self-images are usually wrapped up in their jobs, so you don’t want to lose those individuals by getting them to think negatively about themselves. Punishment should be impersonal in nature, focusing not on an individual’s quali- ties, but on his or her actions. Make it clear that “it’s not you” but “what you did.” Applying this principle, you should refrain from calling Joe “lazy” but explain the problems that common problem such as chronic absenteeism or tardiness. First, the supervisor may give the employee an informal oral warning. Then, if the problem persists, there would be an official meeting with the supervisor, during which time a formal warning would be issued. The next offense would result in a formal written warning that becomes part of the employee’s person- nel record. Subsequent offenses would lead to suspension without pay. And finally, if all this failed, the employee would be terminated. In the case of more serious offenses—such as gambling, for example—some of the preliminary steps would be dropped, and a formal writ- ten warning would be given. For the most serious offenses, such as stealing or intentionally damaging company property, officials would move immediately to the most severe step,
- 411. immediate dismissal. Companies with the most effective disciplinary programs tend to make the contingencies clear, such as by specifying punishment rules in the company handbook. When this is done, employees know exactly what kind of behaviors the company will not tolerate, often minimizing the need to use discipline at all. It probably comes as no surprise that supervisors do not always punish all inappropriate behaviors they encounter.73 A key reason for this is that supervisors may feel constrained by limitations imposed by labor unions or by their own lack of formal authority. Also, in the absence of a clear company policy about how to use discipline, individuals may fear strong negative emotional reactions from the punished individual, if not also revenge and retaliation. As a result, many supervisors may turn the other way and simply do nothing when employees behave inappropriately. Although doing nothing may be easy in the long run, ignoring chronic problems is a way of informally approving of them, leading to increasingly serious problems in the future. With this in mind, companies with the best disciplinary programs make it a practice to take immediate action. At Honda of America, for example, human resource specialist Tim Garrett notes that the company pays very close attention to all infractions of the rules, includ- ing ones “that other companies wouldn’t think of paying attention to,” adding, “If there’s a
- 412. problem, we’ll pay attention to it right away.”74 (For a discussion of the principle underlying this practice and many others bearing on the use of discipline, see the The Ethics Angle sec- tion below.) (Continued) CHAPTER 3 • PERCEPTION AND LEARNING: UNDERSTANDING AND ADAPTING TO THE WORK ENVIRONMENT 133 those connections in the minds of the wrongdoers. Also, as sug- gested by the notion of informational justice, the explanation will help people perceive the punishment as fair, especially when it’s made in a way that shows dignity and respect for the individual (i.e., when a high degree of interpersonal justice is shown). As for Joe, it’s a good idea to explain that the punishment he receives is “nothing personal” and that you don’t like having to do it, but company rules require you to take action. At this same time, it may be useful to work with Joe to figure out why he’s chronically late and to find a way to avoid this. Do not follow punishment with noncontingent rewards. Managers sometimes attempt to minimize the pain of punish- ment by doing something nice to make up for it. This is a serious mistake because it reinforces bad behavior. For example, it may
- 413. make everyone feel better if you were to send Joe home with pay so he could “think about the problem.” However, this would send the message that “if you’re late often enough you can get time off with pay,” which would only make the problem worse. As a manager, then, you should resist the temptation to take away with one hand while giving with the other. Managers should make every effort to follow these principles when disciplining employees. Not only do they represent the “right thing to do,” but, at the same time, they also represent the “effective thing to do.” result when he is not at his desk on time (e.g., customers cannot reach him). Use punishment consistently across occasions. If you sometimes fail to punish a wrongdoing, you may send the message that you sometimes can get away with breaking the rules. Then when you do issue a punishment, the wrongdoer is likely to think that it’s unfair because you’re enforcing the rule inconsis- tently (i.e., you’re violating procedural justice; see Chapter 2). This would suggest that it’s important to “write up” Joe (by putting a notation in his employee record) each and every time he is late. Punish everyone equally for the same infraction. If some people are punished while others are not, you will be accused of favoritism and will be considered unfair. After all, this inconsistency is a violation of procedural justice. It’s critical to apply the rules evenly. Applying this to our example, it would be necessary to “write up” all employees whenever they are late,
- 414. not just Joe. Clearly communicate the reasons for the punishment given while showing dignity and respect. Making clear exactly what behaviors lead to what disciplinary actions helps make punishment effective because it establishes Summary and Review of Learning Objectives 1. Distinguish between the concepts of social perception and social identity. Social perception is the process through which people select, organize, and interpret the information around them as it pertains to other people. According to social identity theory, the way we perceive others and ourselves is based on both our own unique characteristics (known as personal identity) and our membership in various groups (known as social identity). 2. Explain how the attribution process works and describe the various sources of bias in social perception. The process of attribution involves judging the underlying reasons for people’s behavior. Some of our judgments are based on inferences made on the basis of observing others’ behavior. These judgments, known as correspondent inferences, are often inaccurate. Our search for explanations about the causes of others’ behavior leads us to make either judgments of internal causality (the individual is responsible for his own actions) or external causality (someone or something else is responsible).
- 415. Kelley’s theory of causal attribution explains that such judgments will be based on three types of information: con- sensus (whether others act in a similar manner), consistency (whether the individual pre- viously acted this way in the same situation), and distinctiveness (whether this person acted similarly in different situations). Several types of systematic errors, known as perceptual biases, limit the accuracy of social perception. These include the fundamental attribution error (the tendency to attribute others’ actions to internal causes), the halo effect (the tendency to perceive others in either consistently positive or negative terms), the similar-to-me effect (the tendency to perceive similar others in a favorable light), first-impression error (the tendency for initial impressions 134 PART 2 • BASIC HUMAN PROCESSES to guide subsequent ones), and selective perception (the tendency for people to focus on only certain aspects of the environment). Perceptual inaccuracies also result from the tendency for people to rely on the use of stereotypes (the judgments of others based on the categories to which they belong). Perceptual biases can result in self-fulfilling prophecies (the tendency for someone’s expectations about another to cause that individual to behave in a manner consistent with
- 416. those expectations). These can be positive in nature, such as when expecting someone’s performance to be good actually makes it so (known as the Pygmalion effect). They also can be negative, such as when someone’s performance is bad because it was expected to be bad (known as the Golem effect). 3. Understand how the process of social perception operates in the contexts of employment interviews and performance appraisals. People are generally interested in getting others to perceive them favorably, and their efforts in this regard are referred to as impression management. This process is particularly important in employment interviews, although it sometimes interferes with the accuracy of information presented about individuals or companies. Biased judgments about others sometimes occur during the process of performance appraisal. In this context, people judge as superior those individuals whose performance matches their expectations, and those whose good performance is attributed to internal sources and whose poor performance is attributed to external sources. 4. Define learning and describe the two types most applicable to OB: operant conditioning and observational learning. Learning refers to relative permanent changes in behavior occurring as a result of experi- ence. In organizations, learning generally takes the form of operant conditioning and observational learning. In operant conditioning, individuals learn to behave certain ways
- 417. based on the consequences of those actions. Stimuli that increase the probability of the behaviors preceding it are known as reinforcers. Reinforcement may be either positive, if it is based on the presentation of a desirable outcome, or negative, if it is based on the with- drawal of an unwanted outcome. The probability of certain responses can be decreased if an unpleasant outcome results (punishment), or if a pleasant outcome is withdrawn (extinc- tion). Observational learning involves learning by modeling the behavior of others. By paying attention to and rehearsing the behavior of others, we can learn vicariously, that is, through the model’s experiences. 5. Describe how principles of learning are involved in organizational training and innovative reward systems. Learning is involved directly in efforts to teach people to acquire new job skills, the process known as training. Training is most effective when people can actively participate in the learning process, repeat the desired behaviors, receive feedback on their performance, and learn under conditions closely resembling those found on the job. Today, companies are experimenting with innovative reward systems that include skill-based pay (i.e., paying people for the various skills they have demonstrated on the job) and team-based rewards (i.e., paying people for their contributions to team performance). 6. Compare the way organizations use reward in organizational
- 418. behavior management programs and how they can use punishment most effectively when administering discipline. Organizational behavior management is a systematic attempt to apply principles of reinforcement to the workplace so as to improve organizational functioning. Reinforcing desired behaviors can improve organizational functioning greatly. In contrast to applica- tions of reinforcement, discipline is the systematic application of punishments to minimize undesirable organizational behaviors. The effects of discipline are most effective when punishment is applied immediately after the undesirable activity, moderately severe, focused on the activity rather than the individual, applied consistently over time, and for all employees, clearly explained and communicated, and not weakened by the use of inad- vertent rewards. CHAPTER 3 • PERCEPTION AND LEARNING: UNDERSTANDING AND ADAPTING TO THE WORK ENVIRONMENT 135 Experiencing OB Individual Exercise Identifying Occupational Stereotypes Although we usually reserve our concern over stereotypes to those about women and members of racial and ethnic minorities, the simple truth is that people can hold stereotypes toward members of
- 419. just about any group. And, in organizations, people are likely to hold stereotypes based on a variable whose importance cannot be downplayed—the occupational groups to which they belong. What we expect of people, and the way we treat them, is likely to be affected by stereotypes about their professions. This exercise will help you better understand this phenomenon. Directions Using the following scale, rate each of the following occupational groups with respect to how much of each characteristic people in these groups tend to show. 1 � not at all 2 � a slight amount 3 � a moderate amount 4 � a great amount 5 � an extreme amount Points to Ponder Questions for Review 1. What is social perception, and how is it applicable to the field of OB? 2. How do people come to make judgments about what others are like (known as the attribution process)? 3. In what ways is the attribution process biased, and
- 420. what can be done about it? 4. How do operant conditioning and observational learn- ing operate in the workplace? 5. What are the fundamental principles of learning, and how are they involved in organizations? 6. What should be done to ensure that efforts to punish employees are as effective as possible? Experiential Questions 1. Think of a time when you made judgments about a new workmate as you got to know him or her. In what ways were these judgments biased? As you got to know this person better, did you change your mind? What lesson can you learn about reaching judgments about people prematurely? 2. As a manager, it’s important not to judge employees based on your expectations. If you do, the Pygmalion effect or the Golem effect may occur. Think back at a situation on the job or at school in which either you or your supervisor/teacher had expectations that led to one of these self-fulfilling prophecies. Exactly what happened? How was everyone involved affected, both positively and negatively? What could have been done to avoid this problem? 3. Think about any work-related training programs in which you may have been involved. In what ways were these efforts successful? What might have been done to make them even more effective?
- 421. Questions to Analyze 1. The attribution process is inherently inaccurate and subject to bias. In view of this, what chance do you think managers have of making accurate assess- ments of their subordinates’ job performance? What could be done to combat these limitations, thereby making these important assessments more accurate? 2. E-learning is very popular today. What specific advice would you give anyone launching a corporate e-learning program who wants to make it as effective as possible? Do you think e-learning can ever be as effective as in-person training? In what ways might it be even more effective than in-person training? 3. Overall, do you think that managers will be able to more effectively change their subordinates’ perfor- mance by using reward or by using punishment? However you answer, what specific steps would you take to make these efforts most effective? Explain your recommendations. 136 PART 2 • BASIC HUMAN PROCESSES Questions for Discussion 1. Did your ratings of the various groups differ? If so, which were perceived most positively and which were perceived most negatively? 2. On what characteristics, if any, did you find no differences with respect to the various
- 422. groups? What do you think this means? 3. To what extent did your ratings agree with those of others? In other words, was there general agreement about the stereotypical nature of people in various occupational groups? 4. To what extent were your responses based on specific people you know? How did knowledge, or lack of knowledge, of members of the various occupational groups influence your ratings? 5. Do you believe that by becoming aware of these stereotypes you will perpetuate them in the future, or refrain from behaving in accord with them? Explain. Group Exercise Role Play: Conducting a Disciplinary Interview Knowing how to discipline employees who behave inappropriately is an important manage- rial skill. The trick is to change the bad behavior into good behavior permanently, getting people to accept their mistakes and understand how to correct them. As you might imagine, this is often far more difficult than it sounds. After all, people are generally reluctant to admit their errors, and may have developed bad work habits that must be overcome. In addition, they tend to resist being chastised and don’t like listening to criticism. With this in mind, disciplining others represents quite a challenge for managers, making it a skill worth developing.
- 423. Directions 1. Select four students from the class and divide them into two pairs. One person from each pair should read only the role sheet for Andy F., machine operator, and the other person from each pair should read only the role sheet for Barry B., his supervisor. Send both pairs outside the room until called on. 2. Members of the class will serve as observers and should read both role sheets. 3. Call in the first pair of role players and ask them to spend about 10 to 15 minutes playing their roles—that is, acting as they would if they were the characters about whom they just read in the role sheets. They should feel free to assume any additional facts not described in these sheets. Accountants Professors Lawyers interesting interesting interesting generous generous generous intelligent intelligent intelligent conservative conservative conservative shy shy shy ambitious ambitious ambitious Clergy Physicians Plumbers interesting interesting interesting generous generous generous intelligent intelligent intelligent
- 424. conservative conservative conservative shy shy shy ambitious ambitious ambitious CHAPTER 3 • PERCEPTION AND LEARNING: UNDERSTANDING AND ADAPTING TO THE WORK ENVIRONMENT 137 4. Members of the class should observe the role play, taking careful notes. The class should not get involved in what the actors are saying, but pay close attention to it. 5. Repeat steps 3 and 4 with the second pair of role players. Role Sheets Andy F., Machine Operator You have worked at Acme Manufacturing for six years now and have had a good record. Because you do your job so well, you sometimes take liberties and horse around with your buddies. For example, one Friday afternoon you were caught dancing around the shop floor when a good song came on the radio. Barry B., your supervisor, called you on the carpet for leaving your station. You think he has it in for you and is trying to run you off the job. Although you were acting silly, you are convinced that it doesn’t matter since you were getting your job done. Now, he has called you in to see him to discuss the situation. Barry B., Supervisor
- 425. After several years of experience in other shops, you were hired by Acme Manufacturing to be its new shop supervisor, a job you’ve had for only four months. Things have gone well during that time, but you’ve been having trouble with one machine operator, Andy F. Andy seems to do an acceptable job, but is not giving it his all. Part of the problem is that he goofs around a lot. You have spoken to him about this informally a few times on the floor, but to no avail. One Friday afternoon you caught him away from his station, dancing around the shop floor. Not only wasn’t he doing his own job, but he was distracting the others as well. You have just called Andy in to see you to discuss the situation. Questions for Discussion 1. Did the supervisor, Barry B., define the problem in a nonthreatening way? 2. Did each party listen to the other, or did they shut each other out, merely explaining their own sides of the story? 3. Did Barry B. suggest specific things that Andy F. could do to improve? Were the specific punishments associated with future bad acts spelled out explicitly? 4. Were the discussions impersonal in nature, or did the parties focus on each other’s personalities? 5. Considering all these questions, which supervisor would you say did a better job of administering discipline? What could be done to improve the
- 426. way each supervisor conducted the disciplinary meeting? Practicing OB Managing People Who Are Goofing Off Employees at a corporate call center have not been spending enough time at their cubicles answering phones, as required. Instead, they’ve been walking throughout the facility, talk- ing to each other about personal matters. In other words, they’re socializing and goofing off instead of working. Important calls have gone unanswered and customer service problems have arisen as a result. 1. What types of attributions would you be prone to make about these employees, and how would these be related to the performance evaluations you give them? 2. What types of errors would you be prone to make while making these judgments, and what might you do to overcome them so that you can make more accurate judgments? 3. How might you use training, innovative reward systems, organizational behavior management programs, and discipline to address the problem? 138 PART 2 • BASIC HUMAN PROCESSES C as e
- 427. in P oi n t thereafter, the incidents of customer harassment began. The union is seeking a modified policy that gives workers some discretion in the matter, allowing them to choose whether or not to maintain eye contact or to refuse to carry a customer’s bags to his car at night. From its headquarters in Pleasanton, California, Safeway officials acknowledged that although some customers get out of hand, this is not the result of their policy. They add that not one of the store’s employees, currently about 200,000, ever has been fired for failing to be friendly. However, 100 have been sent to a daylong remedial training class on friendliness, what they call “Smile School.” This, says Safeway spokesperson Debra Lambert, “is not about discipline. It’s about treating customers well and training employees to do that.” Think about this when you complain about that surly clerk who doesn’t even look up to acknowl- edge you the next time you’re in your local supermarket looking for laundry detergent. Questions for Discussion 1. How, specifically, is the process of attribution illustrated in this case? 2. What do you suppose is being done to help train people to be friendlier toward customers? In other
- 428. words, what would you imagine goes on in Safeway’s “Smile School”? 3. Describe what you believe might be the progressive discipline steps outlined in the warning letter sent to unfriendly Safeway clerks. ■ Smiling Might Not Be Such a Safe Way to Treat Safeway Customers Any training course on the essentials of customer service will advise you always to smile at customers and to make eye contact with them. In fact, it seems so commonsensical as to not need repeating. Little would you imagine, therefore, that doing precisely this actually would cause problems for some supermarket clerks! Nonetheless, this is precisely what hap- pened to a dozen female employees at a Safeway supermar- ket in Martinez, California. The women claimed that their eye contact and smiles elicited unwanted attention from some male shoppers who mistook these friendly gestures as acts of flirting. Some clerks even had to resort to hiding in the store to escape customers who were hungry for services that weren’t for sale. A produce clerk at one northern California store was even followed to her car and proposi- tioned by a supermarket shopper who got the wrong idea. The root of the problem, argue the 12 clerks who filed grievances with the United Food and Commercial Workers Union, is Safeway’s “Superior Service” policy, which explic- itly requires them to smile at customers and to maintain three seconds of eye contact with each one. It also expects clerks to anticipate customers’ needs, to help them find items for which they’re looking, and to call them by name if paying by check or credit card. This policy was in place for five years before Safeway
- 429. officials started enforcing it by using undercover shoppers to spot violators, who were sent letters warning them of the negative evaluations and disciplinary measures (even firing!) that could result from failing to comply. Soon Chapter Outline � Personality: Its Basic Nature � Major Work-Related Aspects of Personality: The “Big Five,” Positive Versus Negative Affectivity, and Core Self-Evaluations � Additional Work-Related Aspects of Personality � Abilities and Skills: Having What It Takes to Succeed Learning Objectives After reading this chapter, you should be able to: 1. Define personality and describe its role in the study of organizational behavior. 2. Identify the Big Five dimensions of personality and elements of core self-evaluations, and describe how they are related to key aspects of organizational behavior. 3. Distinguish between positive and negative affectivity, and describe its effects on organizational behavior. 4. Describe achievement motivation, and distinguish among
- 430. learning, performance, and avoidance goal orientations. 5. Describe Machiavellianism and the difference between morning and evening persons, and their role in work-related behavior. 6. Differentiate among cognitive intelligence, practical intelligence, and emotional intelligence and explain the influence of social skills on behavior in organizations. 4CHAPTE R Individual Differences: Personality, Skills, and Abilities 139 140 PART 2 • BASIC HUMAN PROCESSES Preview Case ■ Kenneth Chenault: An American Success at American Express For American Express (AMEX), 2009 was a challengingyear. Faced with a slumping economy, cardholders curbed their spending dramatically, and record numbers of even the wealthiest members had delinquent accounts. Despite this gloomy, recessionary profile, AMEX’s chair- man and CEO, Kenneth I. Chenault, vowed to turn things around—a proclamation that Wall Street would have dis- missed as puffery had it come from an executive without a quarter-century of successes on his résumé.
- 431. Since joining AMEX in 1981, Chenault systematically worked his way to the top by masterminding a string of turnarounds in each unit he headed. In the mid-1980s, for example, he put himself on the map by reviving the once- struggling merchandise services unit. Partnering with Panasonic and Sharp (who were looking for markets for their new video recorders), he up-scaled the merchandise mix—which used to consist of only low-ticket items such as luggage tags and clocks—boosting annual sales from $100 million to $700 million in just a few years. Basking in the glow of this accomplishment, Chenault earned a ticket to the company’s more prestigious consumer-card division, where he transformed an admit- tedly uncompetitive niche company into a vast financial empire. One key to this success involved expanding the company’s limited base of wealthy customers to less afflu- ent people and signing on lower-level merchants who never took American Express cards, such as gas stations, discount stores, and supermarkets—eventually, even Wal- Mart. Aiding this effort, and in a move that raised more than a few eyebrows in the New York headquarters, Chenault slashed the fees that merchants were charged for processing customers’ purchases (which, traditionally, were much higher than competitors MasterCard and Visa). Despite reduced individual-transaction revenue, the company more than made up the difference in increased volume. As Chenault transformed AMEX into a card for the masses, the company’s income skyrocketed each year he was at the helm. Behind Chenault’s many accomplishments is a man who, since high school, has been exceptionally analytical in his approach to life. This comes across in his careful analyses of missteps (and there have been these as well) to
- 432. ensure that they won’t be repeated and by his penchant for encouraging his colleagues to question his ideas in a constructive manner. The more they challenge him, the more he thinks about the problem at hand. Given his highly analytical approach, it’s not surprising that as a stu- dent at Bowdoin College and later at Harvard Law School, Chenault became known for debating important issues in a logical, unemotional and fact-driven style. A proud African American, Chenault never let race serve as a basis for choosing sides of an issue. A col- league once noted that “Ken has the capacity to operate in the mainstream of both worlds” and is “never shunned by one group or the other.” As Chenault rose through the ranks at AMEX based on his exceptional successes, people of all races were pulling for him—and were duly proud of him. Chenault is a leading figure in his field who just happens to be African American but whose winning appeal is universal. Those who work with Chenault know him to be uncombative in style, but always honest and likable, a true gentleman. It would be a grievous error to take Chenault’s quiet ways as a sign that he is anything less than a fierce competitor. Just as he wasn’t afraid to take on the naysayers who were against the changes he brought about at AMEX, he also hasn’t been afraid to take on competitors in the credit card business. In fact, over four years, Chenault ushered AMEX through a legal battle against Visa and MasterCard, claiming that these companies were guilty of restraint of trade by not allow- ing banks to issue American Express cards. In July 2008, just as bad financial news was released, AMEX won a $4 billion settlement—a tidy sum that will mitigate AMEX’s financial losses during a difficult period. Chalk up another victory for Chenault.
- 433. If you were to describe Mr. Chenault, what terms would you use? Would you say he’s dedicated? A visionary? A risk taker? Surely, he’s all these things and more. No matter how you put it, Ken Chenault is quite special and a highly successful businessperson, to say the least. Many of us surely find it difficult to relate to such a unique individual. That makes sense. However, in our own ways—even if we aren’t CEOs of giant financial services firms—we are each unique. After all, each of us has a one-of-a-kind mix of traits, characteristics, skills, and abilities—a combina- tion that makes us different, in various ways, from every other human being on the planet. Scientists refer to the ways in which people differ from one another as individual differences, and such unique qualities can have major influences on our thinking and behavior as well as our lives and careers. Because such factors play a role in many aspects of behavior in work settings, they have long been of interest to experts in the field of organizational behavior. As such, in this chapter we provide a broad overview of this knowledge. individual differences The many ways in which individuals differ from each other. CHAPTER 4 • INDIVIDUAL DIFFERENCES: PERSONALITY, SKILLS, AND ABILITIES 141
- 434. Our plan is as follows. First, we focus on personality, one very important aspect of indi- vidual differences. Here, we first consider the matter of how various facets of personality combine with elements of the work environment to influence behavior. This is important because according to the popular interactionist perspective to organizational behavior, how we behave is based on both who we are (i.e., individual influences) and the contexts in which we operate (i.e., situational influences).1 Following this, we turn to the question of how personality can be measured. Since personality traits are not physical quantities that can be observed readily, measuring them can be challenging, but, as we will describe, researchers are able to assess personality quite effectively. Then, after describing these measurement methods, we discuss a variety of personality variables that have important effects in the workplace. Finally, in another major section, we will examine several abilities (mental and physical capacities to perform various tasks) and skills (proficiency at performing specific tasks acquired through training or experience) and their effects on various aspects of organi- zational behavior. Personality: Its Basic Nature How would you describe your own personality in a single sentence? Admittedly, that’s a very difficult task, because what makes each of us unique is complex and hard to put into words. But personality involves more than just uniqueness. Since understanding the nature of personality is crucial to appreciating its potential role in organizational
- 435. behavior, we begin by taking a closer look at this important concept. What Is Personality? As we noted earlier, we are all, in some ways, unique—that is, we all possess a distinct pattern of traits and characteristics not fully duplicated in any other person. Further, this pattern of traits tends to be stable over time.2 Thus, if you know someone who is optimistic, confident, and friendly today, then chances are good that he or she also showed these same traits in the past and will continue to do so in the future. Together, these two features form the basis for a useful work- ing definition of personality—the unique and relatively stable pattern of behavior, thoughts, and emotions shown by individuals (see Figure 4.1).3 As we will describe in this chapter, personality plays an important role in organizational behavior. personality The unique and relatively stable pattern of behavior, thoughts, and emotions shown by individuals. TRAITS OF PEOPLE E N B M F
- 436. D J Past Present Future LA K I G H FIGURE 4.1 Personality: Defining Characteristics When we speak of personality, we are referring to each individual’s unique blend of traits that is relatively stable over time. 142 PART 2 • BASIC HUMAN PROCESSES Personality and Situations: The Interactionist Approach Earlier, we indicated that personality often combines with situational factors to influence behavior. Although people possess stable traits and characteristics that predispose them to behave in certain ways, these qualities by themselves do not completely determine how someone will behave in any
- 437. given setting. Situations also introduce forces that affect how one is likely to behave. Together, both personal factors and situational factors combine to influence behavior. In other words, the way someone behaves is the result of both an individual’s characteristics (e.g., his or her knowledge, abili- ties, skills, and personality) and the nature of the situation in which that person operates (e.g., the nature of the job and industry, the country in which the work is being performed, etc.). This approach, known as the interactionist perspective, is very popular in the field of OB today.4 Let’s consider an example. Someone with a quick temper may be predisposed to act aggres- sively, but he or she may refrain from expressing anger (e.g., by screaming at a coworker) because of the negative consequences of doing so in that setting (e.g., losing a job, getting into legal trouble). In this case, the situation imposes demands to hold aggression in check. It’s also possible, of course, that someone’s aggressive tendencies are so strong that they override the demands of the situation, resulting in tragic consequences. It’s useful to think of the interactionist perspective, as illustrated in Figure 4.2, as a combined set of forces—individual and situational—that can tip the balance so as to influence behavior in a certain way at any particular time. In the field of organizational behavior, the question of whether various aspects of personality affect job performance has long been of interest.5 As we will note later in this chapter, certain aspects of personality are indeed related to job performance. Although this is important, it doesn’t tell the whole story, however. The strength of the effects of
- 438. personality depends on many situational factors. These may include such factors as job demands (i.e., the set of tasks and duties associated with a specific job that motivates people to behave in certain ways; see Chapter 7) and social norms (i.e., pressures to go along with others in one’s group; see Chapter 8). Overall, both personality and situational factors can serve as facilitators— factors that encourage certain behav- iors, or constraints, factors that discourage certain behaviors.6 We present these in generic form in Figure 4.2, but let’s now consider some specific scenar- ios. First, as depicted in situation 1, suppose you are a very quiet person, someone who is inclined to keep quiet most of the time. This would discourage you from saying anything, but you would be even more strongly disinclined from saying anything if you perceive the organiza- tion as discouraging people from speaking their minds (e.g., by punishing those who speak up at meetings). Now, consider situation 2, in which things are opposite. Here, suppose you are a very expressive person, someone who is inclined to speak up about things. This would facilitate voic- ing your opinions, but you would be especially likely to do so when organizational norms and culture (see Chapters 8 and 14) also send strong signals that this is encouraged. As you might suspect, it’s easy for people when they encounter situation 1 or situation 2 because all forces lead them in the same direction. Both who they are as individuals and the demands of the situations they face lead them in the same directions. However, things are more difficult in situations 3 and 4. Here,
- 439. an individual’s personality leads him or her to behave one particular way while the demands of the situation lead that person to behave in a different fashion. In such cases (illustrated in the two diagrams in the lower half of Figure 4.2), people are likely to be conflicted. The balance can be tipped slightly in either direction, depending on which force is stronger—the facilitating influences or the constraining influences. So, for example, a quiet person in a situation that places a high premium on speaking up (situation 3) and an expressive person in a situation in which speaking up is discouraged may go ever so slightly one way or another if the balance is tipped. Of course, the balance will not go too far because the opposite force will keep it from doing so. As a result, we wouldn’t expect to find particularly high degrees of expressiveness or of quietness under such conditions. As you might imagine, people are likely to be quite uncom- fortable in settings in which their predispositions are at odds with the demands of the situation. This brings up a key consideration involved in selecting certain career options (see Appendix 2)—person-job fit. This term refers to the degree to which a person’s unique blend of characteristics (e.g., personality, skills) is suited to the requirements for success on a particular job.7 As you may suspect, the more closely individuals’ personalities, traits, and abilities match those required by a given job, the more productive and satisfied they tend to be on those jobs.8 interactionist perspective The view that behavior is
- 440. a result of a complex interplay between personality and situational factors. person-job fit The extent to which the traits and abilities of individuals match the requirements of the jobs they must perform. CHAPTER 4 • INDIVIDUAL DIFFERENCES: PERSONALITY, SKILLS, AND ABILITIES 143 Personal Influences (i.e., individual characteristics) Person may or may not act in this case (and only weakly, if so) because the individual and situational forces are contradictory (balancing each other out) Person may or may not act in this case (and only weakly, if so) because the individual and situational forces are contradictory (balancing each other out) Constraining personal influences (e.g., individual is predisposed to not act a certain way) Situational Influences (i.e., demands imposed by
- 441. the context) Constraining situational influences (e.g., situation discourages one from behaving a certain way) Resulting effect Situation 1: Person is highly unlikely to act (and to do so strongly) in this case because both his or her personal characteristics and the situation dictate not acting Person Act Situation Don't act Facilitating personal influences (e.g., individual is predisposed to act a certain way) Facilitating situational influences (e.g., situation encourages one to behave in a certain way) Person is highly likely to act (and to do so strongly) in this case because both his or her personal characteristics and the situation dictate acting
- 442. Situation 2: Situation Person ActDon't act Constraining personal influences (e.g., individual is predisposed to act a certain way) Facilitating situational influences (e.g., situation encourages one to behave in a certain way) Situation 3: SituationPerson Don't act Act Facilitating personal influences (e.g., individual is predisposed to act a certain way) Constraining situational influences (e.g., situation discourages one from behaving a certain way) Situation 4: Situation Person
- 443. Don't act Act FIGURE 4.2 The Interactionist Perspective This popular approach to the study of personality suggests that behavior in almost any context is a joint function of both characteristics of the individuals being considered and aspects of the specific context in which they are behaving. Various ways in which personalities and situations may either constrain or facilitate behavior are summarized here. 144 PART 2 • BASIC HUMAN PROCESSES FIGURE 4.3 Person-Job Fit: Matching Personality to Job Requirements Jonathan Lee Iverson has been ringmaster of the Ringling Bros. and Barnum & Bailey Circus since 1998. He landed this unusual job at age 22 (making him the Circus’s youngest ringmaster), shortly after graduating from the Hartt School of Music in Hartford, Connecticut. Mr. Iverson’s talents closely fit the unique requirements of this demanding job. Sometimes the ringmaster must sing, and Iverson is blessed with a wonderful voice with a great range. Also, he is exceptionally friendly and outgoing. And of course, he is simply not afraid to control the entire show—three rings with 180 performers and 80 animals at a time. Few people could do all these things, but they’re a great match for Iverson. Now well into his second decade as ringmaster, Iverson loves his job and is considered to be highly
- 444. successful at it. Fortunately, through interacting with others, people often receive feedback suggesting the par- ticular jobs that best fit their personalities (see Figure 4.3). How Is Personality Measured? Physical traits such as height and weight can be measured readily by means of simple tools. Various aspects of personality, however, cannot be assessed quite so simply. There are no rulers that we can put to the task. How, then, can we quantify differences between individuals with respect to their various personality characteristics? Several methods exist for accomplishing this task. In this section, we describe two of the most important techniques. Finally, we consider some of the essen- tial requirements that all procedures for measuring individual differences must meet. OBJECTIVE TESTS: PAPER-AND-PENCIL MEASURES OF WHO WE ARE. Have you ever completed a questionnaire in which you were asked to indicate whether each of a set of statements is true or false about yourself, the extent to which you agree or disagree with various sentences, or which Z um a W ir e
- 445. W es t P ho to s/ N ew sc om . CHAPTER 4 • INDIVIDUAL DIFFERENCES: PERSONALITY, SKILLS, AND ABILITIES 145 of several pairs of activities you prefer (e.g., attending a football game versus reading a book)? If so, you appear to have completed what is known as an objective test—a paper-and-pencil inventory in which people are asked to respond to a series of questions designed to measure one or more aspects of their personalities. Objective tests are the most widely used method of measuring both personality and mental abilities (such as intelligence). People’s answers to the questions on objective tests are scored by comparing individuals’answers to special scoring keys. The score obtained by a specific person
- 446. is then compared with those obtained by hundreds or even thousands of other people who have taken the test previously. In this way, an indi- vidual’s relative standing on the trait or ability being measured can be determined. This can then be used to predict various aspects of behavior, such as success in specific kinds of jobs or training. PROJECTIVE TESTS. A very different approach to measuring personality is adopted in what are known as projective tests. These tests present individuals with ambiguous stimuli—for instance, a drawing of a scene in which it is not clear what the persons shown are doing. Individuals taking such tests then report what they perceive, and their answers are used as a basis for reach- ing conclusions about their personalities. Presumably, one reason why different people report “seeing” different things in the ambiguous stimuli they examine is that they differ with respect to personality; and such differences then, supposedly, become visible in their responses. Do such tests really work—do they really provide insights into personality? There is consid- erable controversy over this issue so, except for a few widely used tests (e.g., one that measures the need for achievement), projective tests are not very popular among researchers in the field of OB. Instead, most prefer to use the objective tests described earlier. Now, let’s turn to questions that relate to all measures of personality—questions about whether these measures really allow us to assess the variables we want to measure. RELIABILITY AND VALIDITY: ESSENTIAL
- 447. REQUIREMENTS OF PERSONALITY TESTS. Imagine that you weigh yourself on your bathroom scale every morning. One day, the weight reads “150 pounds.” The next day, it reads “140 pounds.” Although you may be happy with at least one of these results, you would probably suspect that something is wrong because you could not pos- sibly have lost 10 pounds overnight. Instead, it is much more likely that there is something wrong with the scale. It is not recording your weight accurately. More formally, we would say that it is not measuring your weight in a reliable manner. Clearly, to have confidence in something we measure—weight, various aspects of personal- ity, or anything else—we must be able to measure it reliably. The reliability of a measure refers to the extent to which it is stable and consistent over time. As you might imagine, a measure of personality must have a high degree of reliability for it to be useful. Only those tests that show high degrees of reliability are used in research in the field of OB. After all, tests that do not yield reliable results may tell us little—or, even worse, they may be misleading. In addition to being reliable, a test must also be valid—that is, it must really measure what it claims to measure. To understand, think about those “tests” that often appear in popular magazines, such as ones with the provocative title, “Are You Compatible with Your Mate?” Considering that this is an interesting question, you go through the questions, check a few boxes, and then go to the scoring key to see if you’ll be enjoying a life of bliss or if you’ll end up in divorce court. Although
- 448. you might find this exercise interesting and fun, and it might cause you to think about important things in your relationship, chances are good that this so-called test is not valid. In other words, such an exercise probably hasn’t been tested by scientists to see if people’s scores really do predict how their relationship ends up. In this case, we would say that the measure is low in validity. The term validity refers to the extent to which a test measures what it actually claims to measure. Naturally, we seek tests that have high degrees of validity because we can be confident of what their scores mean (for an example of the opposite of this, see Figure 4.4). Tests that are low in validity, however, are essentially useless. This is the case even if the test is reliable. After all, if a test reliably suggests inaccurate things, it certainly is without merit. How do we assess a test’s validity? In actual practice, the process is complex, requiring many steps and sophisticated statistical procedures. In essence, though, a test’s validity is established by demonstrating that scores on it are related to other aspects of behavior that already are known to reflect the trait being measured. In other words, a test of a personality trait is valid to the extent that what it measures is closely related to the “true” measure of that trait, as assessed by other established tests. For instance, a test of sales ability would be valid to the extent that successful reliability The extent to which a test yields consistent scores on various occasions, and the extent to which all of its
- 449. items measure the same underlying construct. validity The extent to which a test actually measures what it claims to measure. objective tests Questionnaires and inventories designed to measure various aspects of personality. 146 PART 2 • BASIC HUMAN PROCESSES FIGURE 4.4 A Not-So-Valid Personality Test It may be fun to think you can learn about people’s personalities by how they squeeze tubes of toothpaste. However, because no scientific efforts have been made to determine if the squeezing of toothpaste tubes really means anything at all, such a “test” would have to be considered not valid. As such, it should not be used—except, of course, to get toothpaste out of a tube. salespersons score high on it whereas those who are unsuccessful score low. Only to the extent that its validity has been so established would it be useful for selecting potential employees—ones likely to succeed at selling. Scientists refer to this type of validity as predictive validity. This term refers to the extent to which scores on a test administered at one
- 450. time are correlated with scores on some performance measure assessed at a later time (see Figure 4.5). Another example of predictive validity can be seen in the test you might have taken for admission into college, graduate school, or professional school. Such tests are considered valid because the individuals who score high on them tend to perform better in school than those who predictive validity The extent to which the score achieved on a test administered to a person at one time predicts (i.e., is correlated with) some measure of his or her performance at some later time. Lower Lower Higher Higher People scoring low on the test perform poorly later onP er fo rm an
- 451. ce a t Ti m e 2 Test score at Time 1 People scoring high on the test perform well later on FIGURE 4.5 Predictive Validity When a test has a high degree of predictive validity, it is able to predict performance assessed at some later point in time. The positive correlation between the test score and the measure of job performance shown here provides evidence of a high degree of predictive validity. This is desirable because it makes it possible to predict how someone will behave in the future based on tests administered in the present. E va n Fo rs
- 453. CHAPTER 4 • INDIVIDUAL DIFFERENCES: PERSONALITY, SKILLS, AND ABILITIES 147 FIGURE 4.6 What Are These Organizations Like? When asked to describe organizations, people tend to use qualities akin to human personality traits. For example, research has shown that although both Nike and Disney are considered to be highly innovative, Disney is seen as being a friendly, Boy Scout–type company, whereas Nike is considered a highly dominant and stylish company. Source: Based on findings by Slaughter, Zickar, Highhouse, & Mohr, 2004; see Note 9. score lower. This positive correlation (see Appendix 1) between the test score and a measure of success (i.e., higher scores are associated with greater success) is an indication of its predictive validity. And this, of course, is precisely why colleges and universities rely on such tests. After all, if they didn’t help predict success in their programs, there’d be no reason to use them. At this point, we should note that all the traits and abilities considered in this chapter are measured by tests known to be both reliable and valid. Thus, you can have confidence in the find- ings we report concerning their relationships to important aspects of organizational behavior. Do Organizations Have Personalities Too? If you ask people what qualities come to mind when they think
- 454. of Microsoft, chances are good that they’d say things like “arrogant” and “dominant.” However, if you asked them about the Walt Disney Company, they’d likely say “family-oriented” and “friendly.” Such responses seem to suggest that people think of organizations, much like people, as having certain traits—unique, stable characteristics that set them apart from other organizations—that is, distinct personalities. Can this be true? In one sense, it cannot. After all, organizations are not living entities and do not possess emotions, thoughts, or memories. In another sense, though, there is no doubt that we often think about organizations as though they do have distinct personalities (see Figure 4.6). D av id A nt ho ny /A la m y. Fr an
- 455. ci s M . R ob er ts /N ew sc om . 148 PART 2 • BASIC HUMAN PROCESSES If organizations have personalities, then what particular traits describe them? One team of researchers looked at this question.9 Hundreds of business school students in the study were asked to rate several familiar companies (e.g., AT&T, Ford, McDonald’s, Kroger, Wal-Mart, Subway, Bob Evans, JCPenney, Disney, Microsoft, Reebok, and Nike) on various traits. Interestingly, several distinct clusters emerged, with various companies rated highly on each. These clusters, traits describing them, and some of the companies rating highly on them are as follows:
- 456. � Boy Scout: friendly, attentive to people—Disney, Bob Evans � Innovative: interesting, unique—Nike, Disney � Dominant: successful, popular—Nike, Microsoft � Thrifty: poor, sloppy—Bob Evans, JCPenney � Stylish: modern, contemporary—Nike, Reebok It’s interesting that some companies rated highly on more than one cluster of characteristics. This shouldn’t be too surprising because, just as some individuals possess high amounts of more than one personality characteristic, so too may organizations. For example, that Nike was perceived to be innovative, dominant, and stylish may square well with your own perception of this company. Clearly, various companies are viewed as possessing different clusters of traits, but are these related to anything important? Do they really matter? The researchers who conducted this study predicted that organizational personalities would be linked to organizational attractiveness—the extent to which individuals perceive organizations as attractive places in which to work. To test this prediction, they prepared descriptions of a fictitious company that depicted it as possessing high amounts of the characteristics associated with each cluster. Participants were shown one of these descriptions and were asked to rate the company’s personality and their attraction to it as a place in which to work. Results were clear: Ratings of the company’s personality corresponded to the descriptions provided. Also, companies depicted as high on the Boy Scout, innovative, and stylish dimensions were rated as the best
- 457. places in which to work. What does this mean? It appears that we tend to think about organizations as having personali- ties, and that our perceptions in this regard influence our interest in working in such companies. Clearly, then, even if organizational personality does not exist in the same sense as individual personality, people do think of companies as having certain stable qualities. Savvy organizations cer- tainly should take these into account when planning the nature of the recruitment ads they place in brochures and magazines. Major Work-Related Aspects of Personality: The “Big Five,” Positive Versus Negative Affectivity, and Core Self-Evaluations Now that we have defined personality and described how it is measured, we will focus on several personality variables that have been linked closely to important aspects of organizational behav- ior. In this first section, we’ll consider aspects of personality widely considered to be important because they influence many aspects of behavior in work settings. After that, we’ll consider several additional aspects of personality that also have important implications for behavior in work settings, but whose effects are somewhat less general in scope. The Big Five Dimensions of Personality: Our Most Fundamental Traits How many different personality traits can you list? Some time ago, scientists searching an English language dictionary identified almost 18,000 traits.10 Fortunately, we don’t have to
- 458. consider anywhere near this many. A good number of these traits are very similar, and only a handful have been found to play a role in organizational behavior. In fact, evidence suggests that there are a more manageable, five key dimensions to consider. Because these same five dimensions have emerged in so many different studies conducted in so many CHAPTER 4 • INDIVIDUAL DIFFERENCES: PERSONALITY, SKILLS, AND ABILITIES 149 TABLE 4.1 The Big Five Dimensions of Personality The items listed here are similar to ones used to measure each of the Big Five dimensions of personality. Answering them may give you some insight into these key aspects of your personality. Directions: Indicate the extent to which you agree or disagree with each item by entering a number in the space beside it. Enter 5 if you agree strongly with the item, 4 if you agree, 3 if you neither agree nor disagree, 2 if you disagree, and 1 if you disagree strongly. Conscientiousness I keep my room neat and clean. People generally find me to be extremely reliable. Extraversion I like lots of excitement in my life. I usually am very cheerful.
- 459. Agreeableness I generally am quite courteous to other people. People never think I am cold and sly. Emotional Stability I often worry about things that are out of my control. I usually feel sad or “down.” Openness to Experience I have a lot of curiosity. I enjoy the challenge of change. Scoring: Add your scores for each item. Higher scores reflect greater degrees of the personality characteristic being measured. different ways, they are referred to as the Big Five dimensions of personality.11 These are as follows: � Extraversion. A tendency to seek stimulation and to enjoy the company of other people. This reflects a dimension ranging from energetic, enthusiastic, sociable, and talkative at the high end, to retiring, sober, reserved, silent, and cautious at the low end. � Agreeableness. A tendency to be compassionate toward others. This dimension ranges from good-natured, cooperative, trusting, and helpful at the high end, to irritable, suspicious, and uncooperative at the low end.
- 460. � Conscientiousness. A tendency to show self-discipline, to strive for competence and achieve- ment. This dimension ranges from well organized, careful, self- disciplined, responsible, and precise at the high end, to disorganized, impulsive, careless, and undependable at the low end. � Neuroticism. A tendency to experience unpleasant emotions easily. This dimension ranges from poised, calm, composed, and not hypochondriacal at the low end, to nervous, anxious, high-strung, and hypochondriacal at the high end. � Openness to experience. A tendency to enjoy new experiences and new ideas. This dimension ranges from imaginative, witty, and having broad interests at the high end, to down-to-earth, simple, and having narrow interests at the low end. These five basic dimensions of personality are measured by means of questionnaires in which the people whose personalities are being assessed answer various questions about themselves. Some sample items similar to those on popular measures of the Big Five dimensions are shown in Table 4.1. By completing them, you gain a rough idea of where you stand on each of these dimensions. Research on the relationship between various Big Five dimensions of personality and specific forms of behavior has established some important connections. Overall, the Big Five dimensions are related strongly to work performance.12 This is the case across many different occupational groups (e.g., professionals, police, managers, salespersons, skilled
- 461. laborers), and several kinds of perfor- mance measures (e.g., ratings of individuals’performance by managers or others, performance during training programs, personnel records). Of all the dimensions, however, conscientiousness shows the strongest association with task performance: The higher individuals are on this dimension, the higher their performance.13 The next strongest connection to job performance is for emotional stability: The more emotionally stable someone is, the better his or her task performance tends to be.14 agreeableness A tendency to be compassionate toward others; one of the Big Five personality dimensions. conscientiousness A tendency to show self-discipline, to strive for competence and achieve- ment; one of the Big Five personality dimensions. neuroticism A tendency to experience unpleasant emotions easily; one of the Big Five person- ality dimensions. openness to experience A tendency to enjoy new experiences and new ideas; one of the Big Five person-
- 462. ality dimensions. Big Five dimensions of personality Five basic dimensions of personality that are related strongly to different forms of organizational behavior. extraversion A tendency to seek stimulation and to enjoy the company of other people; one of the Big Five personality dimensions. 150 PART 2 • BASIC HUMAN PROCESSES Other dimensions of the Big Five also are linked to task performance, but in more specific ways. For instance, agreeableness is related positively to various interpersonal aspects of work (e.g., getting along well with others). And for some occupations—ones requiring individuals to interact with many other people during the course of the day (e.g., managers, police officers, salespeople)—extraversion is related positively to performance. The Big Five dimensions also are related to team performance. Specifically, the higher the average scores of team members on conscientiousness, agreeableness, extraversion, and emotional stability, the higher their teams perform.15 Overall, then, it appears that the Big Five
- 463. dimensions are a key determinant of job performance for teams as well as individuals. In addition, the Big Five traits also are linked to other important organizational processes.16 For example, several of the Big Five dimensions play an important role in determining who becomes a leader (see Chapter 13).17 People scoring high in extraversion, in openness to experi- ence, and in agreeableness (e.g., the tendency to trust others, at least initially) are more likely to become leaders than others who score low on these dimensions.18 Research also has found that entrepreneurs—people who start their own businesses—possess higher or lower degrees of certain Big Five traits than managers in general.19 Specifically, compared to managers in general, entrepreneurs score higher on conscientiousness and openness to experience, which makes sense since these qualities would appear to be quite important when starting a business. Entrepreneurs also score lower than managers on neuroticism (reflecting their tendency to be more poised and calm) and agreeableness (reflecting their tendency to be suspicious of others). Finally, entrepreneurs and managers are relatively equal with respect to extraversion. Of these variables, conscientiousness is particularly important because the higher entrepreneurs are in conscientiousness, the longer their new ventures tend to survive—and, the longer a new business exists, the more likely it is to be financially successful (see Figure 4.7).20
- 464. FIGURE 4.7 Eric Baird: One Conscientious Entrepreneur The positive link between conscientiousness and entrepreneurial success is reflected in Eric Baird, the man behind MyUS.com, a fast-growing shipping and packaging company in Bradenton, Florida. Baird is a tireless worker whose discipline and hard work led the company to grow from sales of $10.147 million in 2006 to $26 million only two years later—a gain of 156 percent. In recognition of this staggering growth, Baird was named 2009 Entrepreneur of the Year by the Gulf Coast Business Review. M ar k W em pl
- 465. e/ M ar k W em pl e Ph ot og ra ph y. CHAPTER 4 • INDIVIDUAL DIFFERENCES: PERSONALITY, SKILLS, AND ABILITIES 151 High Positive Affectivity (joy, enthusiasm) Low Negative Affectivity (calm, relaxed)
- 466. Low Positive Affectivity (apathy, sluggishness) High Negative Affectivity (fear, nervousness) Negative Affectivity Po si ti ve A ff ec ti vi ty FIGURE 4.8 Positive and Negative Affectivity Positive affectivity and negative affectivity are
- 467. two independent dimensions. The mood states associated with high levels and low levels of each are shown here. Positive and Negative Affectivity: Tendencies Toward Feeling Good or Bad It is a basic fact of life that our moods fluctuate rapidly—and sometimes greatly—throughout the day. An e-mail message containing good news may leave us smiling, while an unpleasant conversation with a coworker may leave us feeling gloomy. Such temporary feelings are known as mood states and can strongly affect anyone at almost any time. However, mood states are only part of the total picture when considering how our feelings and emotions can affect our behavior at work. As you probably know from experience, people differ not only in terms of their current moods—which can be affected by many different events—but also with respect to more stable tendencies to experience positive or negative feelings.21 Some people tend to be “up” most of the time whereas others tend to be more subdued or even depressed; and these tendencies are appar- ent in a wide range of contexts. In other words, at any given moment people’s affective states (their current feelings) are based both on temporary conditions (i.e., ever-changing moods) and relatively stable differences in lasting dispositions to experience positive or negative feelings (i.e., stable traits).
- 468. These differences in predisposition toward positive and negative moods are an important aspect of personality. In fact, such differences are related to the ways in which individuals approach many events and experiences on their jobs and in their lives in general. Some people, as you know, are generally energetic, exhilarated, and have a real zest for life. You know them to be “up” all the time. Such individuals may be said to be high in positive affectivity. They may be characterized as having an overall sense of well-being, seeing people and events in a positive light, and usually experiencing positive emotional states. By contrast, people who are low in positive affectivity are generally apathetic and listless. Another dimension of mood is known as negative affectivity. It is characterized at the high end by people who are generally angry, nervous, and anxious, and at the low end by those who feel calm and relaxed most of the time.22 As indicated in Figure 4.8, positive affectivity and negative affectivity are not the opposite of each other, but rather two separate dimensions. As you might suspect, people who are high in positive affectivity behave differently from those who are high in negative affectivity with respect to several key aspects of organizational behavior. In fact, 42 percent of office workers responding to a survey indicated that they worked with people who could be described as “negative”—perpetual pessimists who think everything
- 469. will turn out badly, criticizers who find fault with everything, and people who are just plain negative—they are simply “down” all the time.23 Not only do such individuals perform poorly themselves, but their negativity also interferes with the performance of others. In other words, negative affectivity The tendency to experience negative moods in a wide range of settings and under many different conditions. positive affectivity The tendency to experience positive moods and feelings in a wide range of settings and under many different conditions. 152 PART 2 • BASIC HUMAN PROCESSES they create an atmosphere that reduces productivity and that, of course, can be costly. This comes across in terms of the following forms of behavior. � Decision making. People with high levels of positive affectivity make superior decisions than those with high levels of negative affectivity.24 � Team performance. Work groups that have a positive affective tone (those in which the average level of positive affectivity is high) function more effectively than groups
- 470. that have a negative affective tone (those in which the average level of negative affectivity is high).25 � Aggressive behavior. Because they tend to be very passive in nature, people who are high in negative affectivity are likely to be targets of aggression from others in their organizations.26 In view of these findings, it’s little wonder that positive and negative affectivity are considered important personality traits when it comes to understanding organizational behavior. Core Self-Evaluations: How Do We Think of Ourselves? What is your image of yourself? To what extent is your self- concept positive or negative? Although most people view themselves in positive terms, not everybody does so to the same degree. Moreover, the particular way in which we view ourselves is not indicative of a single personality variable, but rather, four distinct elements of personality known as core self- evaluations. These refer to people’s fundamental evaluations of themselves, their bottom-line conclusions about themselves.27 People’s core self-evaluations are based on four particular personality traits (see Figure 4.9). These are as follows: � Self-esteem. The overall value one places on oneself as a person � Generalized self-efficacy. A person’s beliefs about his or her capacity to perform specific
- 471. tasks successfully � Locus of control. The extent to which individuals feel that they are able to control things in a manner that affects them � Emotional stability. The tendency to see oneself as confident, secure, and steady (this is the opposite of neuroticism, one of the Big Five personality variables) Individually, each of the four dimensions of core self- evaluations has been researched extensively, and each is associated with beneficial organizational outcomes.28 For example, take self-esteem. Individuals with high levels of self-esteem tend to welcome opportunities to perform core self-evaluation People’s fundamental evaluations of themselves, their bottom-line conclu- sions about themselves. self-esteem The overall value one places on oneself as a person. generalized self-efficacy A person’s beliefs about his or her capacity to perform specific tasks successfully. locus of control The extent to which
- 472. individuals feel that they are able to control things in a manner that affects them. emotional stability The tendency to see oneself as confident, secure, and steady (the opposite of neuroticism, one of the Big Five personality variables). Self-Esteem Emotional Stability Generalized Self-Efficacy Locus of Control FIGURE 4.9 Core Self- Evaluations In assessing who we are as individuals, people rely on four aspects of personality, which together are known as core self-evaluations. These various components are shown here.
- 473. CHAPTER 4 • INDIVIDUAL DIFFERENCES: PERSONALITY, SKILLS, AND ABILITIES 153 challenging jobs and enjoy rising to the occasion. Not surprisingly, they also put forth a great deal of effort and perform at high levels. By comparison, people who have low self-esteem perceive difficult work situations as threats and dislike them. As a result, they either try to avoid such tasks or don’t give them their full effort because they expect to fail, and as a result, they tend to perform poorly.29 Now, let’s consider generalized self-efficacy. Individuals who have high amounts of this trait are confident that they can do well at whatever they do. This, in turn, encourages them to take on such challenges; because they believe they will succeed, they are unlikely to give up when things get rough. As a result, they tend to be successful at these jobs. Then, because they associate the work with success, they are inclined to be satisfied with the jobs themselves. In view of this, it’s important to consider how to raise self-efficacy on the job. For some suggestions in this regard, see the OB in Practice section below. Locus of control also is related positively to job satisfaction and performance. Specifically, someone with a highly internal locus of control is likely to believe that he or she can do what it takes to influence any situation. He or she feels confident in being able to bring about change. As a result, individuals with high internal locus of control tend to be satisfied with their jobs because
- 474. they strive to improve any undesirable conditions or seek new positions (not remaining in jobs in which they believe their fates are sealed). And as a result of making situations better, they tend to perform at high levels as well. Finally, emotional stability also makes a difference. As we noted in conjunction with the Big Five dimensions of personality, emotional stability is the opposite of neuroticism (i.e., they are opposite ends of the same personality dimension). People scoring high on emotional stability generally feel confident and secure, which makes them willing to take on job challenges and to work hard to meet them. Not surprisingly, such individuals not only perform their jobs well but also enjoy high levels of satisfaction in doing them. It’s important to note that these individual effects tend to be particularly strong when taken together. In the aggregate, researchers consider core self- evaluations to be “among the OB in Practice Boosting Employees’ Self-Efficacy When people believe that they can do a job and do it well, the chances that they really can succeed often increase. Why? Because heightened feelings of self-efficacy (belief in one’s ability to accomplish a specific task) have important benefits. They increase both motivation and persistence (“Why give up? I know I can make it!”) and encourage individuals to set chal- lenging goals (“I know I can do much better than before”). So, encouraging high levels of self-efficacy among employees is worthwhile. How can companies reach this objective? Here
- 475. are three tips. 1. Give Constructive—Not Destructive—Feedback. Probably the most important reason to give people feedback on their work is to help them improve. Other motives certainly exist (e.g., some managers give employees negative feed- back to “put them in their place” or “even the score”), but these reasons are counterproductive from the point of view of increasing self-efficacy. On the other hand, constructive feedback that focuses on how an employee can improve his or her performance can elevate self- efficacy because it helps reassure recipients that they can get there—that they have or can soon acquire the skills or strategies necessary for success. 2. Expose Employees to Models of Good Performance—and Success. How do people learn to do their jobs effectively? From direct practice, of course; but in addition, they acquire many skills and strategies from others. And the more of these they possess, the more likely they are to perform well—and so to experience increased self-efficacy. This suggests that com- panies that adopt carefully planned mentoring programs— programs in which inexperienced employees work closely with successful, experienced ones (see Appendix 2)—can help build self-efficacy among their employees. 3. See Continuous Improvement. Another technique for enhancing self-efficacy involves the quest for continuous improvement. GE’s “Six Sigma” program, for instance, rests on the basic idea that “we can do it better—always!” The term six sigma is drawn from the field of statistics to refer to an outstanding level of performance, one that is far above average. Although some employees find this approach daunting at first, meetings and workshops soon convince them that they are part of a truly superb organization that will simply not settle for “average.” The
- 476. result? Employees come to view themselves as superior, lead- ing both self-efficacy and performance to benefit as a result. Through these and related steps, companies can boost the self-efficacy of their employees—and hence, their performance. 154 PART 2 • BASIC HUMAN PROCESSES best dispositional predictors of job satisfaction and performance.”30 As a result, it’s not surprising that OB scientists have paid a great deal of attention to core self-evaluations in recent years.31 Additional Work-Related Aspects of Personality Although many experts on personality consider the dimensions we have discussed so far to be the most important, these are definitely not the only ones that have implications for organiza- tional behavior. We’ll now examine several others that also are related to important forms of behavior in work settings. Machiavellianism: Using Others to Get Ahead In 1513, the Italian philosopher Niccolò Machiavelli published a book titled The Prince. In it, he outlined a ruthless strategy for seizing and holding political power. The essence of his approach was expediency: Do whatever is required to defeat others or gain an advantage over them. Among the guiding principles he recommended were the following: � Never show humility; arrogance is far more effective when
- 477. dealing with others. � Morality and ethics are for the weak; powerful people feel free to lie, cheat, and deceive whenever it suits their purpose. � It is much better to be feared than loved. In short, Machiavelli urged those who desired power to adopt a single-minded approach to success. To him, this involved rejecting such notions as friendship, loyalty, decency, and fair play. A truly successful leader, he suggested, should not be distracted by these factors, but be willing to do whatever it takes to win. Fortunately, most people don’t adopt Machiavelli’s philosophy at extreme levels. However, as you may have experienced, some individuals do, in fact, embrace many of these principles. This observation has led some researchers to propose that acceptance of this ruthless creed reflects a dimension of personality—known, appropriately, as Machiavellianism. Persons high on this dimension (high Machs) accept Machiavelli’s suggestions and seek to manipulate others in a ruthless manner.32 In contrast, persons low on this dimension (low Machs) reject this approach and do, in fact, care about fair play, loyalty, and other principles Machiavelli rejected. Machiavellianism is measured by means of a questionnaire known as the Mach scale, which consists of items similar to the ones shown in Table 4.2. CHARACTERISTICS OF HIGH MACHS. As you might expect, the higher people score on the Mach scale, the lower they score on the Big Five dimensions of
- 478. agreeableness and extraversion, suggesting that getting along with them is not particularly easy.33 Such individuals are smooth and charming, they lie easily, and they have no qualms about manipulating or conning others. They also have little remorse or guilt over harming people, and are callous and show little empathy toward others. In addition, they also tend to be impulsive, irresponsible, and prone to feeling bored. If this description sounds to you like the “con artists” we often read about in the news, you are correct: People scoring high in Machiavellianism show precisely these characteristics.34 Although we don’t know his score on the Mach scale, we expect fully that Bernard Madoff would be a high Mach. As we described in Chapter 2, Madoff coldly and deliberately swindled thousands of investors—many of whom he knew personally—out of tens of billions of dollars by leading them to believe that he was investing their money successfully. In reality, he was running a Ponzi scheme, in which later investors were used to pay early investors. Consistent with being Machiavellian, despite his heartless behavior, Madoff has been characterized as “an affable, charismatic man who moved comfortably among power brokers on Wall Street and in Washington” and whose “employ- ees say he treated them like family.”35 Although Madoff expressed sorrow for his actions while imprisoned for his crimes (which, given what he’s like, may or may not be genuine), he admitted to being insensitive to the harm he ultimately brought others. MACHIAVELLIANISM AND SUCCESS. If high Machs are willing to do whatever it takes to
- 479. succeed, you might expect that they would tend to be successful. Indeed, Madoff was wildly Machiavellianism A personality trait involving willingness to manipulate others for one’s own purposes. CHAPTER 4 • INDIVIDUAL DIFFERENCES: PERSONALITY, SKILLS, AND ABILITIES 155 successful until he got caught. However, this is not always so. How well they do depends on two important factors—the kind of jobs they have, and the nature of the organizations in which they work. First, research has shown that Machiavellianism is not closely related to success in the kinds of jobs in which people operate with a great deal of autonomy. These are jobs—such as salesperson, marketing executive, and university professor—in which employees have the freedom to act as they wish. This gives them good opportunities to free themselves from the clutches of high Machs or to avoid interacting with them altogether!36 Second, as a general rule, high Machs tend to be quite successful in organizations that are loosely structured (i.e., ones in which there are few established rules) rather than those that are tightly structured (i.e., ones in which rules regarding expected behavior are clear and explicit).37
- 480. Why? Because when rules are vague and unclear, it is easy for high Machs to “do their thing.” When rules are clear and strict, in contrast, high Machs are far more limited in what they can do. (Obviously, given the high degree of regulation required in the investment business, it’s clear that Madoff is an exception to this tendency, showing precisely just how audacious he was. As you may know, to prevent any such recurrence, regulations are even tighter today than they were when Madoff was at work.38) So while high Machs are always a danger, they are more likely to do harm under some conditions than others. Achievement Motivation: The Quest for Excellence Can you recall the person in your high school class who was named “most likely to succeed”? If so, you probably are thinking of someone who was truly competitive, an individual who wanted to win in every situation—or, at least, in all the important ones. Now, in contrast, can you think of someone you have known who was not at all competitive—who could not care less about winning? As you bring these people to mind, you are focusing on an important aspect of personality known as achievement motivation (need for achievement). This personality char- acteristic refers to the strength of an individual’s desire to excel at various tasks—to succeed and to do better than others. achievement motivation (need for achievement) The strength of an
- 481. individual’s desire to excel— to succeed at difficult tasks and to do them better than others. TABLE 4.2 Measuring Machiavellianism The items listed here are similar to those included in one of the most widely used measures of Machiavellianism. One’s score on this scale reflects people’s willingness to manipulate others in order to get ahead. Directions: In the space next to each item, enter a number that characterizes your own feelings about that statement. If you disagree strongly, enter 1; if you disagree, enter 2; if you neither agree nor disagree, enter 3; if you agree, enter 4; if you strongly agree, enter 5. 1. The best way to handle people is telling them what they want to hear. 2. When you ask someone to do something for you, it is best to give the real reasons for wanting it rather than giving reasons that might carry more weight. 3. Anyone who completely trusts anyone else is asking for trouble. 4. It is hard to get ahead without cutting corners and bending the rules. 5. It is safest to assume that all people have a vicious streak— and that it will come out when given a chance.
- 482. 6. It is never right to lie to someone else. 7. Most people are basically good and kind. 8. Most people work hard only when they are forced to do so. Scoring: Add your responses to items 1, 3, 4, 5, and 8. To this number add the sum of 2, 6, and 7 after scoring them in reverse (so, if you responded with a 5, add 1 point; if you responded with a 4, add 2 points; if you responded with a 3, add 3 points; if you responded with a 2, add 4 points; and if you responded with a 1, add 5 points). Then, add your scores. The higher your score, the more Machiavellian you tend to be. 156 PART 2 • BASIC HUMAN PROCESSES NEED ACHIEVEMENT AND ATTRACTION TO EASY AND DIFFICULT TASKS. One of the most interesting differences between persons who are high and low in the need for achievement involves their preferences for tasks of varying difficulty.39 Reflecting their strong desire for success, high need achievers avoid performing certain kinds of tasks. Understandably, because especially difficult tasks are likely to result in failure— an unacceptable result for high need achievers—they make an effort to steer clear of them. Interestingly, high need achievers also stay away from tasks that are very easy. Although high need achievers surely would succeed at simple tasks, these are not challenging enough
- 483. to allow the people perform- ing them to feel that they’ve accomplished much of anything. As a result, their needs to succeed would not be satisfied. So, what kinds of tasks attract high need achievers? The answer is: those falling between these extremes. High need achievers strongly prefer tasks of intermediate difficulty. Such tasks are easy enough to make success reasonable while at the same time sufficiently difficult to make it possible to dismiss any resulting failure on the basis of the task’s difficulty. By contrast, the opposite pattern occurs among people who are low in achievement motiva- tion. In other words, such individuals prefer to perform tasks that are very easy and very diffi- cult tasks to ones that are moderately difficult. The explanation relies on the same logic we used for people with high need for achievement. Specifically, because success is virtually certain, people who are low in achievement motivation like to perform easy tasks. Such individuals also prefer tasks that are very difficult even though they’re likely to fail at them. This is because if a task is particularly difficult, anyone performing it would be expected to fail, suggesting that any failure is not the person’s fault but merely a reflection of the task’s inherent difficulty. And when failure is based on such external attributions (recall the process of attribution of causality discussed in Chapter 3), it does not pose a threat to an individual’s self-esteem. In contrast, fail- ure on a moderately difficult task may be a reasonable basis for making unflattering attributions about oneself (i.e., “I’m not very good at it”). As a result, low
- 484. need achievers prefer to avoid such tasks (see Figure 4.10). Although these differences between persons high and low in need achievement are interesting by themselves, their real value becomes apparent when considering the role they play in managers’ success. (interested in performing task) Very easy Moderately difficult Very difficult De si re t o Pe rf or m T as k Task Difficulty Low achievement motivation High achievement motivation
- 485. People low in achievement motivation prefer tasks that are very easy or very difficult People high in achievement motivation prefer tasks of moderate difficulty High (disinterested in performing task) Low FIGURE 4.10 Achievement Motivation and Attraction to Tasks People who are high in achievement motivation are attracted to tasks of moderate difficulty, whereas people who are low in achievement motivation are attracted to tasks that are extremely easy or extremely difficult. CHAPTER 4 • INDIVIDUAL DIFFERENCES: PERSONALITY,
- 486. SKILLS, AND ABILITIES 157 ARE HIGH NEED ACHIEVERS SUCCESSFUL MANAGERS? We have described people high in achievement motivation as having a highly task-oriented outlook. They are strongly concerned with getting things done, which encourages them to work hard and to strive for success. But do they always succeed, especially in managerial positions? As in the case of so many other ques- tions in the field of OB, the answer is far from simple. Given their intense desire to excel, it seems reasonable to expect that people high in achievement motivation will attain greater success in their careers than others. This is true to a limited extent. Research has shown that people high in achievement motivation tend to gain promotions more rapidly than those who are low in achievement motivation, at least early in their careers.40 Their focus on attaining success “jump starts” their careers. However, as their careers progress, their unwillingness to tackle difficult challenges becomes a problem that inter- feres with their success. Further, they tend to be so highly focused on their own success that they sometimes are reluctant to delegate authority to others, thereby failing to get the help they often need from subordinates. Research has shown that CEOs who are high in achievement motivation tend to keep organizational power in the hands of just a few people, failing to empower their team members as needed (see Chapter 12). This is likely to interfere with their effectiveness as managers.41
- 487. At the same time, people who are high in achievement motivation benefit from the fact that they have a strong desire for feedback regarding their performance. In other words, because they want to succeed so badly, such individuals are keenly interested in knowing just how well they are doing. As a result, people who are high in need achievement have a strong preference for merit-based pay systems—that is, ones in which pay and other rewards are based on per- formance (see Chapter 7). This is so because such systems recognize people’s individual achievements. In keeping with this, people who have high needs for achievement generally dis- like seniority-based pay systems (i.e., those in which pay is based on how long one has worked in the company) because these fail to differentiate between employees with respect to their accomplishments on the job.42 ACHIEVEMENT MOTIVATION AND GOAL ORIENTATION: DO PEOPLE DIFFER IN THE KIND OF SUCCESS THEY SEEK? So far, our discussion has implied that the degree to which people desire to achieve is an important dimension along which people differ. But individuals also differ with respect to the kind of success they seek. In fact, individuals can have any one of three contrasting goal orientations when performing various tasks.43 These are as follows.44 � Learning goal orientation. The desire to perform well because it satisfies an interest in meeting a challenge and learning new skills � Performance goal orientation. The desire to perform well to
- 488. demonstrate one’s competence to others � Avoidance goal orientation. The desire to achieve success to avoid appearing incompetent and to avoid receiving negative evaluations from others The existence of these three different goal orientations—that is, various reasons for want- ing to do well in various tasks—has important implications for performance in work settings. For instance, a learning goal orientation is related strongly to general self-efficacy, which we described earlier as a particular element of core self- evaluations.45 The higher one’s learning goal orientation, the greater is his or her general self-efficacy. Since self-efficacy exerts strong effects on performance, a learning goal orientation may be very helpful when it comes to performing many jobs. Similarly, a learning goal orientation also may facilitate benefiting from on-the-job feed- back. Specifically, people high in this orientation want to receive feedback and pay careful attention to it since it will help them to learn. In contrast, neither a performance goal orienta- tion nor an avoidance goal orientation offers similar benefits.46 So overall, organizations should strive to promote a learning goal orientation among their employees. How, exactly, can they do so? To a large extent, the answer lies in giving employees opportunities to acquire new job skills and then rewarding them for doing so (instead of just being competent at what they already know how to do). For an example of how one particular
- 489. company goes about doing this, see Figure 4.11. learning goal orientation The desire to perform well because it satisfies an interest in meeting a challenge and learning new skills. performance goal orientation The desire to perform well to demonstrate one’s competence to others. avoidance goal orientation The desire to achieve success to avoid appearing incompetent and to avoid receiving negative evaluation from others. 158 PART 2 • BASIC HUMAN PROCESSES FIGURE 4.11 Deloitte Consulting Promotes a Learning Goal Orientation Considering that corporate consultants can be called on to do a wide variety of things, it’s essential for them to have a broad array of skills on which to draw. To ensure that their employees are prepared to
- 490. service the firm’s clients, Deloitte Consulting goes out of its way to provide learning opportunities on an ongoing basis. Abandoning the traditional, one-size-fits-all approach to helping employees learn, Deloitte’s professional development program, known as Mass Career Customization (MCC), allows employees to tailor their learning experiences to their own interests—and to adjust these when, and if, their life situations may change. This, together with liberal support for gaining various professional certifications (e.g., paying for training, providing time off work), helps promote a strong learning goal orientation at Deloitte. That achievement motivation influences the success of individuals is far from surprising. But can it also contribute to the economic growth and well- being of entire societies? For infor- mation suggesting that it can, see the Today’s Diverse and Global Organizations section on page 159. Morning Persons and Evening Persons According to the U.S. Department of Labor, about 15 percent of people in the U.S. labor force work at night or on rotating shifts.47 Unfortunately, this can be costly given that the health and well-being of many individuals suffer when they work at night.48 Yet, as you prob- ably know from experience, there are some people who seem to thrive on “the graveyard shift” and actually prefer it. (In fact, if you are up late at night reading this, you may be one of them!) The suggestion that there may be individual differences in the
- 491. times of day at which people feel most alert and energetic is supported by evidence showing that such differences do, in fact, exist and that they are stable over time. Specifically, it appears that most people fall into one of Fe at ur e Ph ot o Se rv ic e/ N ew sc om . CHAPTER 4 • INDIVIDUAL DIFFERENCES: PERSONALITY, SKILLS, AND ABILITIES 159 two categories—they are either morning persons, who feel most
- 492. energetic early in the day, or evening persons, who feel most energetic late in the day or at night. Recently, a study was conducted involving 137 female nurses in Taipai, Republic of China, in which comparisons were made of their sleep quality as a function of the particular shifts in which they worked.52 The day shift was from 7:30 A.M. to 3:30 P.M.; the evening shift was from 3:30 P.M. to 11:30 P.M.; and the night shift was from 11:30 P.M. to 7:30 A.M. Nurses completed two standardized scales, one assessing sleep quality and another assessing their morningness-eveningness (the reliability and validity of both had been established earlier, of course). It was found that the particular shifts the nurses worked were not related to the qual- ity of their sleep, although whether they were morning persons or evening persons made a significant difference in this regard. Specifically, the sleep of evening people was signifi- cantly worse than that of morning people in two critical areas— subjective sleep quality and sleep duration. The researchers explained that this was due to the fact that evening people kept significantly more variable schedules whereas morning people maintained more regular hours. In particular, morning persons slept on average 6 to 8 hours every day, regardless of when they worked or whether it was one of their days off. However, evening people slept between 5 to 8 hours on workdays but 10 to 12 hours on their days off. This suggests that evening persons were experi-
- 493. encing insufficient amounts of sleep on workdays and made up these sleep debts on their days off. When considered in light of the fact that people suffering insufficient amounts of sleep are prone to accidents and errors on the job, these findings for evening persons are of great concern (for an overview of the processes outlined here, see Figure 4.12 on page 160).53 It’s clear that we cannot afford to have nurses making errors, so what can be done to avoid the obvious problems? As in the case of most personality variables, changing one’s morningness- eveningness is not easy, so changing people to match their schedules isn’t promising. Besides, changing people back after schedule changes are made would be impractical. Fortunately, it has been found that evening people can perform well when woking shifts that suit this aspect of their personality, such as evening shifts and night shifts. Evening persons are known to find it easier to work evening shifts and night shifts than morning persons since such schedules are in keeping with their predispositions.54 Our recommendation, then, would be to match workers to schedules that suit their dispositions. Indeed, when this was done in research with students (i.e., when morning persons took early classes and evening persons took later classes), their grades were higher than when these variables were not matched.55 morning persons Individuals who feel most energetic and alert early in the day.
- 494. evening persons Individuals who feel most energetic and alert late in the day or at night. Today’s Diverse and Global Organizations Achievement Motivation and Economic Growth Around the World Economists have demonstrated that a variety of factors— including the price and availability of natural resources, labor costs, and government policies that encourage or discourage growth—contribute to national differences in economic expan- sion. However, these factors do not tell the whole story. Indeed, it appears that one aspect of personality, too, may play a role: national differences in achievement motivation. Although achievement motivation, strictly speaking, relates to individuals, considerable evidence suggests that it also varies across different cultures. What’s more, these differences are related to important economic variables. This point is illustrated dramatically in a classic study in which researchers analyzed children’s stories from 22 different cultures with respect to the degree to which they contained themes of achievement motivation (e.g., the story The Little Engine That Could, which was read by millions of children in the United States, expresses the value of achievement motivation).49 The investigators then related the levels of achievement motiva- tion indicated by these stories to key measures of economic
- 495. development (e.g., per capita income and per capita electrical production). Their findings were impressive: The greater the emphasis placed on achievement in the children’s stories in vari- ous nations, the more rapid was the economic growth in these nations as the children grew up! Interestingly, these findings are not just a fluke; similar results have been reported in other research.50 For example, a massive study involving more than 12,000 participants in 41 dif- ferent countries has confirmed the idea that national differences in achievement motivation can be quite real and that they are related to differences in economic growth.51 Specifically, it was found that various attitudes toward work, such as competitive- ness, were different across countries, and that those countries whose citizens were most competitive tended to be those that had higher rates of economic growth. 160 PART 2 • BASIC HUMAN PROCESSES These findings and those of several other studies suggest that individual differences in pref- erences for various times of day are not only real, but also that they are very important when it comes to job performance.56 Ideally, only individuals who are at their best late in the day should be assigned to night work; this would constitute a good application of the principle of person-job fit, which we described earlier in this chapter. According to this principle, the closer the align- ment between individuals’ skills, abilities, and preferences and the requirements of their jobs, the
- 496. more successful at these jobs they will be. The results of following such a policy might well be better performance, better health, and fewer accidents for employees—outcomes beneficial both to them and to their organizations. Abilities and Skills: Having What It Takes to Succeed As you know from experience, people differ greatly with respect to their abilities—the capacity to perform various tasks—and skills—dexterity at performing specific tasks, which has been acquired through training or experience.57 For example, no matter how hard the author of this book might have tried, he never could have made it as a professional basketball player. He’s nei- ther sufficiently tall nor athletic to succeed. In other words, he lacks the basic physical abilities required by this sport. However, he has other abilities—at least, he likes to think that he does— that have allowed him to enjoy a fulfilling life outside of professional sports. Both abilities and skills are important, of course, but since abilities are more general in nature and have implications for a broader range of organizational behavior, we’ll pay a bit more attention to them in this section of the chapter. Our discussion of abilities will focus on two major types: intellectual abilities (or simply, intelligence), which involve the capacity to perform various cogni- tive tasks, and physical abilities, which refer to the capacity to perform various physical actions. Intelligence: Three Major Types When most people speak about intelligence or intellectual
- 497. abilities, they generally are referring to one’s capacity to understand complex ideas. Of course, this is certainly very important.58 To succeed on a job, one must have the mental capacity to undertake the intellectual challenges associated with it. However, this kind of mental prowess is not the only kind of intelligence there is.59 In fact, on the job, several distinct types of intelligence have proven to be very impor- tant. We now consider these. abilities Mental and physical capacities to perform various tasks. skills Dexterity at performing specific tasks, which has been acquired through training or experience. FIGURE 4.12 Morning Persons Versus Evening Persons: A Potentially Critical Difference A recent study compared the sleep quality of a group of nurses who were identified as morning persons and evening persons. As summarized here, morning persons and evening persons were found to differ in several key ways. Ultimately, these may influence the capacity to perform the job safely. Source: Based on suggestions from Chung et al., 2009; see Note 52.
- 498. RegularRegular schedulesschedules Morning persons Evening persons Regular schedules Variable schedules Appropriate sleep on work-nights Insufficient sleep on work-nights Rested Lower accident rate Fatigued Higher accident rate MORNING VS. EVENING PERSONALITY
- 499. PERSONAL SCHEDULE MAINTAINED SLEEP ADEQUACY ON WORK-NIGHTS FEELING STATE EXPECTED RELATIVE ACCIDENT RATE CHAPTER 4 • INDIVIDUAL DIFFERENCES: PERSONALITY, SKILLS, AND ABILITIES 161 COGNITIVE INTELLIGENCE. “Oh yes, Jennifer is very smart,” someone might tell you in reference to the new person hired in your department. But what exactly is meant by “smart”? Traditionally, the term is used to refer to a specific kind of intellectual ability that psychologists term cognitive intelligence. This involves the ability to understand complex ideas, to adapt effectively to the environment, to learn from experience, to engage in various forms of reasoning, and to overcome obstacles by careful thought.60 As you know from discussions about intelligence (or IQ) tests in the media, people possess this
- 500. type of intelligence to varying degrees. You also probably realize that different jobs require con- trasting levels of cognitive intelligence for success. As you might suspect, the concept of cognitive intelligence is rather broad; it consists of a variety of different cognitive skills and abilities. Among these are abilities involving words, numbers, and visual images, including the following. � Verbal comprehension. The ability to understand written material quickly and accurately � Verbal reasoning. The ability to analyze verbal information so as to make valid judgments on the basis of logical implications of material � Word fluency. The ability to express oneself rapidly, easily, and with flexibility � Numerical ability. The ability to perform basic mathematical operations quickly and accurately � Numerical reasoning. The ability to analyze logical relationships and to recognize the principles underlying them � Space visualization. The ability to visualize three- dimensional forms in space and to be able to manipulate them mentally � Symbolic reasoning. The ability to think and reason abstractly using symbols, rather than words or numbers, to manipulate abstract symbols mentally, and to make logically valid judgments based on them
- 501. It’s probably no surprise that different jobs require various blends of these abilities. As some obvious examples, writers have to be adept at word fluency, statisticians have to be good at numerical ability and numerical reasoning, and architects have to be skilled at spatial visualization. As you read Appendix 2, you’ll come to appreciate how various aspects of cogni- tive intelligence (and other types of intelligence too, as we will see) are involved in people’s selections of various career alternatives. As practical as it may seem to assess people’s cognitive intelligence, some have argued that doing so raises some ethical issues. For a discussion of these points, see “The Ethics Angle” section on page 162. PRACTICAL INTELLIGENCE: SOLVING THE PROBLEMS OF EVERYDAY LIFE. Consider the following hypothetical incident. A business executive and a scientist are walking in the woods, when they spot a large grizzly bear. The bear starts running toward them, growling angrily, obviously intending to attack. Both the executive and the scientist start running, but after a few yards, the scientist stops, and calls to the executive: “There’s no point in running. I have done the calculations, and there is no way we can outrun that bear.” The executive shouts back over his shoulder: “I don’t have to outrun the bear . . . I only have to outrun you!” Although you may find this story a bit unsettling, it provides a clear illustration of individ- ual differences in practical intelligence—the ability to devise effective ways of getting things
- 502. done.61 Growing evidence suggests that practical intelligence is indeed different from the kind of intelligence measured by IQ tests, and that it is especially important in business settings.62 People with high amounts of practical intelligence are said to have “know-how.” Although they might not be able to express very well exactly how they do something, the fact is that they actually can do it—and this, of course, is important. Often, the practical knowledge that people have is acquired informally on their own, largely because it goes unspoken. As such, people must recognize it, and its value, for themselves. For instance, although no one may ever tell an employee how to solve a problem that arises in the office, an individual with a high degree of practical intelligence would be likely to be able to figure out a solution on his or her own. When thinking about practical intelligence, you shouldn’t let the term practical mislead you. Practical is not only applicable to people who work with their hands, such as mechanics and cognitive intelligence The ability to understand complex ideas, to adapt effectively to the environ- ment, to learn from experi- ence, to engage in various forms of reasoning, and to overcome obstacles with careful thought. practical intelligence
- 503. Adeptness at solving the practical problems of everyday life. 162 PART 2 • BASIC HUMAN PROCESSES plumbers. Clearly, such individuals do have to know how to perform certain physical actions, but they also have to have cognitive skills so they can assess problems they confront on the job. At the same time, people who perform jobs involving high degrees of cognitive intelligence also must have practical intelligence if they are to succeed. Take internal medicine physicians as an example. Yes, they certainly are likely to have vast amounts of cognitive knowledge about human physiology, diseases, and the efficacy of various drugs. At the same time, they also must have practical knowledge about the profession if they are to have successful practices. Such practical matters as how to run a medical office, how to satisfy insurance company regulations, and what continuing education seminars are most valuable all must be the focus of the doctor’s attention. Attending to these practical matters while also staying abreast of the latest medical knowledge, although challenging, clearly is essential to the doctor’s professional success. EMOTIONAL INTELLIGENCE: MANAGING THE FEELING SIDE OF LIFE. A third important kind of intelligence that often plays key roles in organizations is known as emotional intelligence.66
- 504. Formally, emotional intelligence (EI) refers to the ability to make accurate judgments of emotions and to use such knowledge to enhance the quality of one’s thinking.67 In other words, The Ethics Angle Are IQ Tests Inherently Unethical? The practice of testing people’s cognitive intelligence dates back to the early 1900s when the French government hired psychologist Alfred Binet to develop a test to identify which particular school- children were likely to be in need of special attention in their classes.63 Today, as you know, IQ tests are used widely in schools and also in some occupational settings. The National Football League, for example, routinely gives an intelligence test to prospective players so that any teams interested in drafting them can assess their mental capacity. This is important considering that players are required to understand many complex plays and that team owners naturally want to ensure that any players they draft (and pay astronomical salaries) are intellectually capable of learning their playbooks. Although you may be well aware of the widespread use of intelligence tests, you may not realize that some people consider this practice to be unethical. Here, then, are some of the ethical concerns that have been raised.64
- 505. Considerations of privacy Some believe that a person’s innate abilities are his or her own business and that by assessing intelligence, people are being asked to reveal things that they might prefer to keep to themselves. With this in mind, it has been argued that anyone being given an IQ test should be made fully aware of the purposes for which it will be used—and that the people collecting this information should not stray from these. Confidentiality is important here because the potential to misuse information about a person’s intelligence is a violation of privacy. Unequal access to opportunities to develop intelligence Intelligence is not fixed. People’s cognitive capacities can grow and develop like their physical capacities. Just as people can exercise their bodies in gymnasiums, they also can exercise their minds, such as by attending school, by reading, by playing intellectually stimulating games (e.g., chess), and so on. Inherently, there’s nothing unethical about this. However, some consider that because measures of IQ are likely to be correlated with having these intellectual opportunities and that these, in turn, are likely to differ based on people’s socioeconomic status, that what we are measuring in the name of intelligence is nothing more than differential opportunities to
- 506. develop cognitive intelligence skills. And with this in mind, it might be considered unfair to differentiate between people on this basis. Fortunately, scientists are capable of statistically controlling for socioeconomic factors when assessing IQ, and this clearly should be done whenever possible. Of course, the underlying problem can be countered by engaging in efforts to improve educational opportunities among those who are socioeconomically disad- vantaged, thereby equalizing opportunities whenever possible. People may misuse IQ tests for racist purposes You’ve probably already heard about controversies surrounding the potentially racist nature of IQ tests, and this has made their use controversial in some situations. Unfortunately, some people have used IQ test scores to justify the mistreatment of individuals considered inferior, thereby advancing their racist agendas. This is certainly unethical, of course, and cannot be condoned. However, it’s been countered that the misuse of IQ tests shouldn’t lead to their elimination because the tests themselves are not at fault. The tests are tools that also can be put to good use. It also has been noted that studies administering culture- free IQ tests—that is, ones whose wording does not disadvantage any one group—to people from diffe- rent racial and ethnic groups do not find that intelligence differs signifi- cantly between them.65 In fact, there is a wider range of
- 507. differences in IQ within people of any given race than there is between the races. Such findings challenge the underlying premise that IQ tests are tools that can be used to promote racism. Obviously, the ethical issues outlined here are very important to consider. We presented both sides of the issue although, like most scientists, we believe that there’s nothing inherently unethical about IQ tests, so long as they are used properly. Of course, we invite you to consider all sides before drawing your own conclusions. culture-free IQ tests Tests that are unbiased because they do not give an advantage to members of any one particular group. emotional intelligence (EI) The ability to make accurate judgments of emotions and to use such knowledge to enhance the quality of one’s thinking; skills involved include the ability to recognize and regulate our own emotions, to influence those of others, and to facilitate performance.
- 508. CHAPTER 4 • INDIVIDUAL DIFFERENCES: PERSONALITY, SKILLS, AND ABILITIES 163 EI refers to a cluster of abilities relating to the emotional or “feeling” side of life. Specifically, four different kinds of ability are involved.68 � Appraisal and expression of emotions in oneself. The individual’s ability to understand his or her own emotions and to express these naturally � Appraisal and recognition of emotions in others. The ability to perceive and understand others’ emotions � Regulation of emotions in oneself. The ability to regulate one’s own emotions � Use of emotions to facilitate performance. The ability to use emotions by directing them toward constructive activities and improved performance (e.g., by encouraging oneself to do better) Much as tests of cognitive intelligence are used to derive intelligence quotient (IQ scores), tests of emotional intelligence are used to derive emotional quotient (EQ scores). One particular type of EQ test may be found in this chapter’s Individual Exercise on pages 168–170. Completing this exercise will give you a good feel for the degree of emotional intelligence you possess. EI is related to several key aspects of organizational behavior,
- 509. such as job performance. Illustrating this, consider a study conducted at a large factory in China.69 The employees who worked there were asked to rate the EI of their coworkers. Then, these ratings were compared to the performance ratings by the coworkers’ supervisors. The results were clear: Individuals who had the highest levels of EI (as rated by their coworkers) had the highest levels of job perform- ance (as assessed by their supervisors). Knowing that such a relationship exists is one thing, but understanding precisely why is quite another. In other words, how can we explain this relationship? Recently, a conceptualiza- tion known as the cascading model of emotional intelligence has proposed an answer.70 Specifically, the cascading model of emotional intelligence suggests that there’s a progressive (i.e., cascading) pattern of emotion-related abilities involved: Emotions must be perceived, then understood, and then regulated before job performance is affected. The model specifies further that these are linked to key personality variables, such as conscientiousness, cognitive ability, and emotional stability. For an overview of this conceptualization, see Figure 4.13. Although the diagram looks complicated, the model is really straightforward. Let’s begin by looking at the horizontal row of boxes. The model begins at the left with perceiving emotions. That is, people must not only experience emotions but also be able to identify the emotions they feel. Although we don’t always think of it, some people are
- 510. more attuned to, and can better rec- ognize, their emotions than others. After emotions are recognized, the next ability requires understanding emotion. This involves understanding how emotions differ from each other, and which particular emotion is most appropriate for a given context. At this point, it’s important for people to regulate their emotional states. This may involve controlling their emotions so that they can maintain focus on their jobs. People who are grief-stricken (due to the loss of a family mem- ber) or extremely overjoyed (due to winning the lottery), for example, may find that their emo- tional states can adversely affect their job performance. Not only does the cascading model specify that this series of abilities is involved but also that these are related to various emotions and other abilities. These are depicted in the column on the left side of the diagram (with arrows showing the interconnections between them). The top box represents conscientiousness. As we noted earlier, highly conscientious people display high levels of job performance. This is depicted by one of the arrows. The other arrow from the consciousness box leads to emotional perception. This reflects the tendency for highly conscien- tious people to be particularly adept at perceiving their emotions. It’s almost as if they have developed a radar to help detect if they are aware of their emotions.71 The arrows from the cognitive ability box are easy to understand. The arrow from cognitive ability to emotion understanding reflects the fact that an individual’s cognitive skills contribute
- 511. to the ability to make sense of his or her emotions. And the other arrow, of course, simply reflects the fact that people who have high levels of cognitive ability are better prepared to succeed on their jobs than those who are less capable in this regard. Finally, let’s consider the connections to emotional stability. The first arrow reflects the fact that people who are highly stable emotionally are particularly adept at regulating their emotions. Obviously, people who are emotionally unsta- ble find it especially challenging to regulate their emotions, often demonstrating outbursts that cascading model of emotional intelligence Conceptualization proposing that emotional intelligence influences job performance through a succession of abilities: the ability to perceive emotions, then to understand them, and then to regulate them; these abilities, in turn, are linked to personality variables, such as conscien- tiousness and neuroticism, and also to cognitive ability. 164 PART 2 • BASIC HUMAN PROCESSES Emotion Regulation
- 512. Conscientiousness Emotion Perception Emotion Understanding Cognitive Ability Emotional Stability Emotion Regulation Job Performance FIGURE 4.13 The Cascading Model of Emotional Intelligence The cascading model of emotional intelligence sheds light on how emotional intelligence is related to job performance. Specifically, as suggested in the horizontal series of boxes, people must have the ability to perceive emotions, then they must have the ability to understand these emotions, and then the stage is set to regulate these emotions. In turn, how well someone can do this is likely to influence his or her job performance. The theory also proposes that these abilities are associated with certain personality variables, such as conscientiousness, cognitive ability, and emotional stability. Source: Reproduced from Joseph, D. L., & Newman, D. A. (2010). Emotional intelligence: An integrative
- 513. meta-analysis and cascading model. Journal of Applied Psychology, 95, 54–78. may be quite embarrassing. Finally, the link from emotional stability to job performance reflects much the same idea. People who are emotionally unstable are not particularly adept at perform- ing a wide variety of jobs, as you might imagine. Concluding our discussion of the cascading model of emotional intelligence, it’s important to note that this is a new conceptualization. Although it hasn’t been in existence very long, it was developed as a result of thoroughly analyzing research findings bearing on the various links. As such, it’s not merely a set of hypotheses requiring testing but rather the result of systematically summarizing dozens of existing research findings. With this in mind, it seems safe to consider the cascading model of emotional intelligence to be a very good explanation of the relationship between EI and job performance. Physical Abilities: Capacity to Do the Job When we speak of physical abilities, we are referring to people’s capacities to engage in the physical tasks required to perform a job. Although different jobs require different physical abili- ties, there are several types of physical abilities that are relevant to a variety of jobs. These include the following. � Strength. The capacity to exert physical force against various objects � Flexibility. The capacity to move one’s body in an agile manner
- 514. � Stamina. The capacity to endure physical activity over prolonged periods � Speed. The ability to move quickly If we were to consider all jobs that people perform, it might be possible to identify those that require primarily intellectual abilities and those that require primarily physical abilities. For example, being a chemist in a research laboratory of a large company involves mainly intel- lectual abilities, whereas being a construction worker involves mainly physical abilities. However, such oversimplification can be misleading. Almost all jobs require both cognitive and physical abilities People’s capacities to engage in the physical tasks required to perform a job. CHAPTER 4 • INDIVIDUAL DIFFERENCES: PERSONALITY, SKILLS, AND ABILITIES 165 physical abilities for success. For example, consider a firefighter. Obviously, such individuals must have high degrees of strength, flexibility, stamina, and speed to be able to perform their jobs well. At the same time, however, they also must possess appropriate cognitive abilities so they can assess the complex demands of the scene (e.g., wind velocity, structure of the building on fire, likely presence of victims, sources of oxygen, and so on). In sum, when it comes to assess- ing the physical demands of a job relative to the more cognitive
- 515. demands, it’s safest to consider this a matter not of “which?” but of “how much of each at any given time?” Social Skills: Interacting Effectively with Others In Chapter 3, we discussed various kinds of employee training and noted that many companies spend large sums of money training their employees. A major goal of such training is equipping employees with new skills—proficiencies in performing various tasks. Because skills are often linked closely to particular jobs or tasks, we cannot possibly examine even a tiny sample of them here. Instead, we’ll focus on one particular cluster of skills that plays a key role in success in many different contexts: social skills—the capacity to interact effectively with others.72 TYPES OF SOCIAL SKILLS. What do social skills involve? Although there is far from total agree- ment on their precise nature, most researchers who have studied social skills and their role in organizational behavior would include the following: � Social perception. Accuracy in perceiving others, including accurate perceptions of their traits, motives, and intentions (see Chapter 3) � Impression management. Proficiency in the use of a wide range of techniques for inducing positive reactions in others (see Chapter 3) � Persuasion and social influence. Skill at using various techniques for changing others’ attitudes or behavior in desired directions (see Chapter 12)
- 516. � Social adaptability. The ability to adapt to a range of social situations and to interact effectively with people from many different backgrounds (see Chapter 6) � Emotional awareness/control. Proficiency with respect to a cluster of skills relating to the emotional side of life (e.g., being able to regulate one’s own emotions in various situations and being able to influence others’ emotional reactions; see Chapter 5) If these particular skills remind you of EI, that’s not surprising; there is considerable overlap between EI and social skills. However, social skills are somewhat broader in scope. Social skills are important because they have considerable effects on behavior. For example, people with well- developed social skills tend to make good impressions on job interviews, receive positive evaluations of their performance, and perform well when negotiating with others.73 In fact, a study of more than 1,400 employees found that social skills are the single best predictor of job performance ratings and assessments of potential for promotion for employees in a wide range of jobs.74 In view of these bene- fits, it’s reasonable to ask how to improve your own social skills. For some suggestions, see Table 4.3. THE IMPORTANCE OF SOCIAL SKILLS: A DEMONSTRATION. Social skills have very broad and gen- eral effects, helping individuals to perform well in a wide range of contexts and on many different jobs. For instance, consider a particularly revealing study designed to investigate the joint effects of conscientiousness, one of the Big Five dimensions we discussed
- 517. earlier, and social skills.75 The researchers hypothesized that people with high levels of conscientiousness will perform well, but only when they have the requisite social skills to succeed.76 The idea is that highly conscientious- ness people who lack social skills may be seen as unreasonably demanding and inflexible by their coworkers. In other words, without social skills to soften the impact of their highly methodical and task-oriented behavior, they may be perceived negatively, as “driven drudges” rather than as valu- able coworkers. And since cooperation and good relations with one’s coworkers often is required for success on many tasks, such individuals may work at below average levels. To test these predictions, the scientists measured the conscientiousness, social skills, and job performance of a variety of workers. As expected, the benefits of conscientiousness were greatest for people high in social skills, smaller for those with average social skills, and weakest for those who were low in social skills (see Figure 4.14). In other words, high levels of conscientiousness translated into excellent performance only for persons who were also socially skilled. For individuals who were low in social skills, in fact, high levels of conscientiousness actually reduced performance slightly. The conclusion is clear: The importance of social skills on the job cannot be overstated. social skills The capacity to interact effectively with others.
- 518. 166 PART 2 • BASIC HUMAN PROCESSES TABLE 4.3 The SOFTEN Approach to Improving Social Skills Considering the benefits of having well-developed social skills, it’s important to identify things you can do to improve your own ability to interact effectively with others. The following guidelines, following the acronym SOFTEN, generally prove helpful. Suggestion Explanation Smile Smiling at someone sends a very pleasant message. This is important because few of us want to interact with anyone having a sour disposition. Open posture By keeping your arms open (maintaining an open posture) when interacting with others, you send the message that you are welcoming the conversation. In contrast, covering yourself with your arms (maintaining a closed posture) sends the message that you are “closed for business,” so to speak—uninterested in interacting with others. Forward lean Leaning forward while talking to others brings you closer to them. It speaks clearly of your engagement in the conversation. Leaning away, however, sends the message that you wish to escape them. Touch In some situations, and for some people, touching someone else is a sign that you are interested in what they have to say. You have to be careful
- 519. about this, however, because some people may find it inappropriate or offensive, particularly in certain cultures. So, follow this suggestion with caution. Eye contact Looking someone in the eye when you speak to them or listen to them is an essential way to show that you are interested in the conversation. Looking away, however, makes it clear that you really don’t want to be there. Nod As we note in Chapter 9, nodding is very helpful feedback for speakers because it shows that you are listening and understanding them. This keeps the conversation moving along, which, of course, is essential to ensuring a positive relationship. High social skills Moderate social skills Low social skills Conscientiousness Jo b Pe rf or m
- 520. an ce Lower Higher Higher Lower Strongest relationship Weakest relationship FIGURE 4.14 Social Skills, Conscientiousness, and Task Performance As shown here, people who are highly conscientious show higher task performance than those who are low in conscientiousness, but only when they are also high in social skills. Individuals who are high in conscientiousness but low in social skills may come across as unreasonably demanding and inflexible, and this may lead other employees to avoid working with—or helping—them. Source: Based on data from Witt & Ferris, 2003; see Note 76. CHAPTER 4 • INDIVIDUAL DIFFERENCES: PERSONALITY, SKILLS, AND ABILITIES 167 Summary and Review of Learning Objectives 1. Define personality and describe its role in the study of organizational behavior.
- 521. Personality is the unique and relatively stable pattern of behavior, thoughts, and emotions shown by individuals. It, along with abilities (the capacity to perform various tasks) and vari- ous situational factors, determines behavior in organizations. This idea is reflected by the inter- actionist perspective, which is widely accepted in the field of organizational behavior today. 2. Identify the Big Five dimensions of personality and elements of core self-evaluations, and describe how they are related to key aspects of organizational behavior. The Big Five dimensions of personality—so named because they seem to be very basic aspects of personality—appear to play a role in the successful performance of many jobs. These are conscientiousness, extraversion-introversion, agreeableness, neuroticism, and openness to experience. Two of these dimensions, conscientiousness and neuroticism (emotional stability), have been found to be good predictors of success in many different jobs. This is especially true under conditions where job autonomy is high. Core self- evaluations are elements of personality reflecting people’s fundamental evaluations of themselves, their bottom-line conclusions about themselves. These are self-esteem, gener- alized self-efficacy, locus of control, and emotional stability (opposite of the Big Five trait neuroticism). Each of the four dimensions of core self- evaluations is associated with bene- ficial organizational outcomes. 3. Distinguish between positive and negative affectivity, and
- 522. describe its effects on organizational behavior. Positive affectivity and negative affectivity refer to stable tendencies for people to experi- ence positive or negative moods at work, respectively. Compared to people scoring high in negative affectivity, those who are predisposed toward positive affectivity tend to make higher quality individual decisions and are more willing to help others. Negative affectivity on the part of customers can generate negative emotional reactions in service providers, and so reduce customers’ satisfaction with the treatment they receive. 4. Describe achievement motivation, and distinguish among learning, performance, and avoidance goal orientations. Achievement motivation (or need for achievement) refers to the strength of an individual’s desire to excel, to succeed at difficult tasks and to do them better than others. A learning goal orientation involves the desire to succeed in order to master new skills. A performance goal orientation involves the desire to succeed to demonstrate one’s competence to others. An avoidance goal orientation involves the desire to succeed to avoid criticism from others or appearing to be incompetent. 5. Describe Machiavellianism and the difference between morning and evening persons, and their role in work-related behavior. People who adopt a manipulative approach to their relations with others are described as being high in Machiavellianism (known as high Machs). They
- 523. are not influenced by con- siderations of loyalty, friendship, or ethics. Instead, they simply do whatever is needed to get their way. High Machs tend to be most successful in situations in which people cannot avoid them and in organizations in which there are few established rules. Morning persons are individuals who feel most energetic early in the day. Evening persons are those who feel most energetic at night. People tend to do their best work during that portion of the day that they prefer and during which they are most energetic. 6. Differentiate among cognitive intelligence, practical intelligence, and emotional intelligence and explain the influence of social skills on behavior in organizations. Cognitive intelligence is the ability to understand complex ideas, to adapt effectively to the environment, to learn from experience, to engage in various forms of reasoning, and to overcome obstacles by careful thought. Traditionally, this is what we have in mind when we refer to intelligence. However, other forms of intelligence play important roles in organizational functioning. These are practical intelligence, the ability to come up with effective ways of getting things done, and emotional intelligence, a cluster of abilities 168 PART 2 • BASIC HUMAN PROCESSES Points to Ponder
- 524. Questions for Review 1. Why might two individuals whose personalities are very similar behave differently in a given situation? 2. What is the difference between being in a good mood and having the characteristic of positive affectivity? 3. Suppose you are considering jobs with two different companies. Would your perceptions of the “personalities” of those companies affect your decision? Should it? 4. How does having low self-efficacy interfere with task performance? 5. Would you prefer to hire employees who are high in learning goal orientation or performance goal orienta- tion? Why? 6. Why are social skills so beneficial to many different kinds of careers? Experiential Questions 1. Have you ever worked for an organization that selected future employees by means of psychological tests? If so, do you think the test made sense—for instance, did it really measure what it was supposed to measure? 2. Have you ever known someone who was high in consci- entiousness but low in social skills? If so, was this indi- vidual successful in his or her career? Why or why not? 3. Where do you think you stand with respect to general-
- 525. ized self-efficacy? Are you fairly confident that you can accomplish most tasks you set out to do? Or do you have doubts about your ability to succeed in many situations? 4. Have you ever encountered someone who was very high in cognitive intelligence (the kind IQ tests measure), but low in practical intelligence? How could you tell? Questions to Analyze 1. Suppose you had to choose an assistant. Would you prefer someone who is high in conscientiousness but low in agreeableness, or someone who is high in agreeableness but low in conscientiousness? Why? 2. Are you a morning or an evening person? When did you first decide that you were one or the other? Has the fact that you are a morning or an evening person affected your career decisions in any way? 3. Many persons who attain very high levels of business success were only below-average students in school. Why this might be so? Experiencing OB Individual Exercise What Is Your EQ? Various tests have been developed to measure the degree of emotional intelligence a person has, characterized as an emotional quotient (EQ score). The instrument presented here is similar to ones that some scientists have used to assess people’s emotional intelligence. Although this contains just a sampling of items—and therefore, is not a definitive measure—completing this
- 526. scale will give you a good sense of your own EQ. Directions The items on the following scale describe difficult situations that might be encountered on the job. For each, select the one response that best indicates what you would be most likely to do in that situation. Scale 1. Someone with whom you work and who you consider to be a friend has borrowed one of your favorite screwdrivers. You asked him to return it to your toolbox, but so far he hasn’t done so. a. Who needs friends like this? I would end the friendship. b. I’d ignore it. Keeping a friend is the most important thing. relating to the emotional or “feeling” side of life. Social skills play an important role in success in many business contexts because getting along well with others is essential for obtaining positive outcomes, and may even influence the effects of key aspects of person- ality (e.g., conscientiousness) on performance. CHAPTER 4 • INDIVIDUAL DIFFERENCES: PERSONALITY, SKILLS, AND ABILITIES 169 c. Until he returns the screwdriver, I’d act cool toward him and hope he gets the message.
- 527. d. I’d explain to my friend why I really can use the screwdriver back and politely ask him to return it. 2. After several months on the job, your boss finally assigns you an important project. This is your chance to show him how good you are, but only if you succeed. If you blow it, your future with the company will be bleak. a. You spend several weeks working out the details of the project before telling anyone about this opportunity. b. You put the project aside for now, planning to return to it some other time. c. You get very nervous as you think about the implications. d. You relax, think about the project, and then bounce some of your ideas off one of your colleagues before pursuing what you believe is the best one. 3. One of your coworkers in an adjacent cubicle has an annoying habit of humming all the time, and it’s really getting to you. a. You just put up with it because it’s not really so bad. b. You explain to this person politely that his or her humming annoys you and explain the reasons why. c. You take an indirect approach by making a joke about his or her annoying
- 528. humming and hope that this person will get the hint. d. You tell your boss that you’ll quit your job if this person doesn’t stop humming or if you aren’t moved to a different cubicle. 4. You are in a business meeting with a client who, for no apparent reason, appears to be very uncomfortable talking to you. a. You do your best to involve the client in a conversation so that the two of you can learn about one another. b. You plan to schedule the next meeting at some other location. c. You begin to worry that you’ve done something to ruin the business deal. d. You assume that the client isn’t interested in doing business with you so you don’t pay much attention to the conversation and spend the time think- ing about other things. 5. Walking through the office one day, you stumble and spill coffee all over the floor. a. You get angry and mutter something to yourself about being so clumsy. b. After cleaning up the mess you laugh at yourself and go about your business. c. You get extremely embarrassed and leave the office before anyone sees what you did. d. You give a dirty look to anyone who happened to see what
- 529. you did. 6. For several months you were hoping to get an important promotion. You thought of yourself as an ideal candidate, but your boss apparently thought otherwise and recommended someone else instead. a. You forget about it and convince yourself that the promotion really wasn’t that important to you. b. You keep on doing your best and realize that there will always be another opportunity to get promoted. c. You feel so upset that you hide in the restroom and cry. d. You keep thinking about what the promoted person has that you don’t have and make yourself feel bad about what happened. 7. In the break room one day, one of your coworkers, Bob, began saying bad things about Cathy, a colleague you really admire but who wasn’t there at the time. a. Although you don’t mean them, you go along with Bob by adding a few negative remarks about Cathy yourself. b. You don’t say anything to Bob at the time but later tell him in private how you feel about his remarks.
- 530. 170 PART 2 • BASIC HUMAN PROCESSES c. You interrupt Bob, saying that you’re uncomfortable talking behind someone’s back, and then change the subject. d. You keep quiet but then feel bad about not stopping Bob from talking negatively about Cathy. Scoring Procedure and Interpretation 1. One of the responses for each situation shows a higher degree of emotional intelligence than the others because it reveals empathy and respect for others. With this in mind, try to identify these “answers,” that is, the responses that indicate the greatest amount of emotional intelligence. 2. Give yourself 1 point for answering the questions as follows. 1 � d, 2 � d, 3 � b, 4 � a, 5 � b, 6 � b, and 7 � c. 3. The higher your score, the higher your EQ. Questions for Discussion 1. How successful were you at being able to predict the one response in each set of alterna- tives that reflected high emotional intelligence? (In other words, how closely did your responses to scoring point number 1 match the correct responses indicated in scoring point number 2?)
- 531. 2. How did your EQ compare to what you thought it would be? How did it compare to those of other people in your class? 3. For item 7, why do you think the high EI answer was alternative “c” instead of “b”? What does this scoring reveal about standing up for others as an aspect of emotional intelligence? Group Exercise Machiavellianism in Action: The $10 Game People who are high in Machiavellianism (high Machs) often come out ahead in dealing with others because they are true pragmatists. That is, they tend to be willing to do or say whatever it takes to win or to get their way. Several questionnaires exist for measuring Machiavellianism as a personality trait. However, tendencies in this direction also can be observed in many face-to-face situations. The following exercise offers one useful means for observing individual differences with respect to Machiavellianism. Directions 1. Divide the class into groups of three. 2. Hand the three people in each group a sheet with the following instructions: Imagine that I have placed a stack of ten $1 bills on the table in front of you. This money will belong to any two of you who can decide how to divide it. 3. Allow groups up to 10 minutes to reach a decision on this task.
- 532. 4. Ask each group whether they reached a decision, and what it was. In each group, you probably will find that two people agreed on how to divide the money, leaving the third “out in the cold.” Questions for Discussion 1. How did the two-person groups form? Was there a particular person in each group who was largely responsible for the formation of the winning coalition? 2. Why did the third person get left out of the agreement? What did this person say or do— or fail to say or do—that led to his or her being omitted from the two-person coalition that divided the money? 3. Do you think that actions in this situation are related to Machiavellianism? How? In other words, what particular things did anyone do that you took as an indicator of being a high Mach? CHAPTER 4 • INDIVIDUAL DIFFERENCES: PERSONALITY, SKILLS, AND ABILITIES 171 ■ Howard Schultz: The Personality Behind Starbucks C ase in Poin
- 533. t Practicing OB Predicting Sales Success A life insurance company has developed a test believed to measure success at personal face-to-face sales. It has used this test to choose new life insurance agents, believing that persons selected in this way will generate high levels of sales. Yet this has not happened. People who score very high on the test are not outselling the company’s existing agents, who never took the test before they were hired. What’s going on here? 1. Do you think the test of “selling ability” might be at fault? For instance, could it be that this test is not really valid? How would you find out if it is or is not? 2. What other factors might be involved? Assuming the test is valid, could the fact that the new agents lack experience be contributing to their relatively poor performance? If so, would you expect this will improve as they gain experience? 3. If you conclude that the test of selling ability is not really valid, how could you help the company develop a better test—one that really does measure this important ability? Contrary to popular belief, Howard Schultz was not the founder of Starbucks. Instead, Starbucks Coffee, Tea and Spice, as it was known, began in 1971 as a small coffee- house in Seattle, the vision of three other men, Jerry Baldwin, Zev Siegel, and Gordon Bowker. A decade later,
- 534. Schultz, who was selling kitchen equipment in New York City at the time, became curious when lots of coffee roast- ing equipment was being purchased by this small shop in Seattle. This led Schultz to Seattle to see what was going on. Excited by what he found in this fledgling business, Shultz envisioned having a chain of friendly, Italian-style espresso bars across the United States. At first, Baldwin, Siegel, and Bowker didn’t share this image, but Schultz pushed to join the company so he could learn the business; the threesome eventually hired Schultz as Starbucks’ marketing manager. After about a year, and the company now with four stores, Schultz convinced his bosses that thinking much larger might not be such a crazy idea. A few years later, Schultz raised $1.25 million and bought the franchise from its three owners. From 1987 to 1992 Schultz grew Starbucks to 150 stores, and by 1990 the company began turning a profit. The template for Starbucks as we know it today—serving 10 million customers a week from 3,300 stores around the world— was established. Schultz is convinced that a huge part of the com- pany’s success rests on his commitment to detail, making sure that every little thing is done right, even the look and feel of the stores. As he put it, “We took things so fastid- iously in terms of creating the visual, nonverbal cues of what it means to be in a Starbucks store.” Not all CEOs maintain such a careful watch over such seemingly minor details, but Schultz has insisted over the years that noth- ing is too minor for his attention. This is not to say that he insists on having things his way. Far from it! Schultz always has been committed to gathering everyone’s ideas and treating his employees fairly so that they are inter- ested in sharing their ideas.
- 535. It cannot be said that Schultz’s ego is as large as his ambitions or his successes, as often is found among successful entrepreneurs. Although every detail at Starbucks reflects Schultz’s contributions, he always speaks of the company in collective terms, using we, us, and our instead of I, me, and mine. To him, it’s all about a team of people who collectively buy into the idea of having a great company by serving exceptional products to people with outstanding customer service. After all, people can buy coffee anywhere, so keeping them com- ing back to Starbucks (which its average customer does 18 times per month) requires listening to people— customers and employees alike—and doing what it takes to keep them happy. Years ago, for example, business at the typical Starbucks location slowed down later in the day, leading some stores to close around 7:30 P.M. In some locations, however, Schultz discovered that sales actually rose in the late afternoons and early evening hours. Visiting these stores, he discovered why. Apparently, customers started using the stores as meeting places. College students would assemble to study and businesspeople would gather for informal meetings there. Happy to accommodate them, these stores extended their hours and added food items, such as various pastries and now sandwiches, to the already (Continued ) 172 PART 2 • BASIC HUMAN PROCESSES extensive list of beverage offerings on the menu. This kind of flexibility was in keeping with Schultz’s interest in build- ing the business by building successful relationships. To him,
- 536. it’s not about the coffee, but all about people. Questions for Discussion 1. What particular Big Five personality traits and what elements of core self-evaluation appear to characterize Schultz? 2. What evidence, if any, points to the possibility that Schultz has a high level of achievement motivation? 3. How do you think Schultz’s social skills may have contributed to the success of Starbucks? What other special skills and abilities do you think he has that have helped the company grow and prosper? Chapter Outline � Understanding Emotions and Mood � The Role of Emotions and Mood in Organizations � Managing Emotions in Organizations � The Basic Nature of Stress � Major Causes of Stress in the Workplace � Adverse Effects of Organizational Stress � Reducing Stress: What Can Be Done?
- 537. Learning Objectives After reading this chapter, you should be able to: 1. Distinguish between emotions and moods. 2. Explain how emotions and moods influence behavior in organizations. 3. Describe ways in which people manage their emotions in organizations. 4. Identify the major causes of organizational stress. 5. Describe the adverse effects of organizational stress. 6. Identify various ways of reducing stress in the workplace. 173 5CHAPTE R Coping with Organizational Life: Emotions and Stress 174 PART 2 • BASIC HUMAN PROCESSES Preview Case ■ How to Beat Call-Center Stress Although the concept of stress is somewhat less visi-ble in Asia than in Europe and North America, this does not necessarily mean that it is less prevalent.
- 538. Indeed, when the demands of a career clash with those of raising a family, this can be a recipe for stress. Many global companies have located their call centers in India, and workers there can earn above-average wages, although a 12- to 14-hour day can be the norm. In 2005, a stress survey was conducted for Dataquest magazine. This survey focused mainly on business process outsourcing (BPO) call centers. The two most significant stressors were insufficient time off and travel time, which were cited by 31.2 percent and 30.9 percent of respondents, respectively. Travel time has become much more important due to the location of BPO call centers, and the nature of the work means that many employees have to work on holidays. The repeti- tive nature of the work (28.4 percent) and work timing (27.6 percent) were also highly significant stressors. One reason that the BPO industry has been so successful is the time difference between India and Western economies; however, this has accounted for the high level of dissatisfaction from those surveyed. Naturally, these factors should not be considered in isolation because a combination of factors often leads to stress and burnout. Some companies from the West have benchmarked their flexible working practices when they have expanded into other parts of the world. For example, Microsoft was recently voted the best company to work for in India (2007) in a Business Today survey. Two of the flexible working practices offered to employees by Microsoft are a free broadband connection to enable telecommuting and a facility to job share. Other companies such as Cisco are mak- ing telecommuting a reality in India. In addition, PepsiCo has taken a proactive approach to detecting problems that
- 539. could lead to stress by establishing a confidential help line for employees to report any incidents (such as harassment) that violate PepsiCo’s code of conduct. One Indian company that has been recognized for its caring approach to employees is Mind Tree, the IT and R&D services company founded in 1999. Innovative flexi- ble working practices, such as one year of leave out of every six for women to balance work and domestic com- mitments and the addition of a baby day-care center, have enhanced employee satisfaction. This has enabled the company to boast a 15.7 percent attrition rate in 2008, compared to an industry average of 25 percent. The company also provides an in-house clinic and gym as well as fitness and lifestyle classes. In addition, mentoring on work–life balance can be provided. Tata Consultancy services is another company that tries to mitigate the effects of stress and boost retention by organizing clubs for trekking, fitness, music, and community services. This clearly demonstrates the contribution of work–life balance to a contented workforce, but it is also important to consider whether the nature of your chosen career lends itself to flexible work arrangements. There’s no mistaking the efforts of companies like Mind Tree to combat stress, and this should raise its profile in many areas of the world. If managers doubt the seriousness of the problem, they need to consider this: The workplace is the single greatest source of stress in people’s lives. And annual cost to American organizations is a staggering $300 billion annually, roughly $7,500 per employee.1 Stress makes a difference in how well people perform, the number of errors they make, and even whether or not they show up for work or remain on their jobs at all.
- 540. Given that stress plays such an important role in the behavior of people in organizations, it clearly warrants the attention we devote to it in this chapter. To understand stress fully, it helps to look more broadly at the wide range of emotions that people feel in everyday work situations and their reactions to them. Whether your experiences are positive (e.g., getting a raise), negative (e.g., receiving a poor performance appraisal), or neutral (e.g., doing your job as usual), these everyday feelings— emotions and moods—play an important role in how we think and act. If emotions and moods seem to be trivial, it’s simply because their effects are so widespread that we take them for granted. However, their impact on the way we work can be considerable.2 Accordingly, we will examine them in this chapter as well. We begin this chapter with an overview of emotions and mood in organizations, describing their basic nature and the important roles they play in organizations. Following this, we examine the nature of stress on the job, focusing closely on specific steps that can be taken to minimize its often harmful effects. CHAPTER 5 • COPING WITH ORGANIZATIONAL LIFE: EMOTIONS AND STRESS 175 Understanding Emotions and Mood Consider, for a moment, the following situations. Put yourself in the places of these characters, imagining how you would feel if you were them.
- 541. � After a gloomy winter, a beautiful, sunny day finally arrived, making Maria happy. She was inspired to come up with lots of new ideas for her clients. � Hector was so upset about not making any progress on his sales report that he couldn’t take it anymore. He left the work piled up on his desk and went to the gym to work out. � It was a special day for Patricia. She was so excited that Demond had asked her to marry him that she made her way through her delivery route in half the usual time—and with a lively spring in her step. There’s nothing special, here, right? Maria is happy, Hector is upset, and Patricia is excited. These are everyday situations to which people have typical reactions. You have them all the time yourself. But don’t let these rather ordinary feelings mislead you into thinking that they are unimportant, especially on the job. Indeed, scientists acknowledge that people’s feelings at any given time are quite important. They also recognize that two different kinds of feelings are involved—emotions and moods. These states, as you will see, have far broader consequences than you might imagine, and they operate in highly complex ways. Properties of Emotions By definition, emotions are overt reactions that express feelings about events. You get angry when a colleague takes advantage of you. You become sad when your
- 542. best friend leaves to take a new job. And you become afraid of what the future holds when a larger firm merges with the company in which you’ve worked for the last 15 years. These are all examples of emotional reactions. To under- stand them, we now consider the various properties of emotions and the different forms they take. EMOTIONS ALWAYS HAVE AN OBJECT. Something or someone triggers emotions. For example, your boss may make you angry when she falsely accuses you of making a mistake or a change in company policy that prohibits overtime may leave you feeling worried. In each case, there is someone or something that caused your emotional reaction. THE SPREAD OF EMOTIONS IS CONTAGIOUS. A key trigger of emotions in people is the emotions of others with whom we interact. This is described using the term emotional contagion, defined as the tendency to mimic others’ emotional expressions, converging with them emotionally.3 You may think of it as “catching” the emotions of others. This phenomenon is prevalent on the job, where workers frequently display the same emotional responses of the higher-ranking others with whom they interact (see Figure 5.1).4 EXPRESSION OF EMOTIONS IS UNIVERSAL. People throughout the world generally portray particular emotions by using the same facial expressions. In fact, even people living in remote parts of the planet tend to express the same emotions in the same manner.5 As a result, we can do a pretty good (but not perfect) job of recognizing the emotional states of others if we pay attention to their facial expressions.
- 543. We have to be careful, however, because as we will point out later, people do not always express the emotions they really feel. When they do, however, we are fairly good at recognizing them. CULTURE DETERMINES HOW AND WHEN PEOPLE EXPRESS EMOTIONS. Although people through- out the world generally express their emotions in the same manner, informal standards govern the degree to which it is acceptable for them to do so.6 These expectations are known as display rules. For example, Italian cultural norms accept public displays of emotion (e.g., hugging good-bye at the airport, or yelling at one another in public), whereas cultural norms frown on such public dis- plays in Great Britain, encouraging people there to “tone down” their emotional displays. For some interesting national differences in willingness to express emotions, see Table 5.1.7 Types of Emotions Despite what you might think, people do not have an infinite (or even a very large) number of unrelated emotions. Rather, people’s emotions may be categorized in a few different ways. Depending on how you categorize them, different features of emotion are highlighted. We now describe two such ways of categorizing emotions. emotions Overt reactions that express feelings about events. emotional contagion The tendency to mimic the emotional expressions of
- 544. others, converging with them emotionally. display rules Cultural norms about the appropriate ways to express emotions. 176 PART 2 • BASIC HUMAN PROCESSES TABLE 5.1 National Differences in Expressivity In a survey of more than 5,000 people in 32 nations, researchers found that people in some countries are more inclined to express their emotions than those in other countries. Listed in order from most expressive (rank 1) to least expressive (rank 32), the findings are summarized here. The scores shown are an index created by the scientists to reflect each country’s level of expressivity (higher scores reflect higher degrees of expressivity). Rank Nation Score Rank Nation Score Rank Nation Score 1 Zimbabwe 523 10 tied India 495 22 Greece 452 2 Canada 520 13 Mexico 485 23 tied Italy 451 3 United States 519 14 Georgia 478 23 tied Croatia 451 4 Australia 510 15 tied Poland 477 25 South Korea 449 5 Nigeria 506 15 tied Portugal 477 26 tied Switzerland 446
- 545. 6 Denmark 505 17 People’s Republic 26 tied Malaysia 446 7 New Zealand 502 of China 471 28 Israel 442 8 Belgium 498 18 Czech Republic 468 29 Russia 432 9 Netherlands 496 19 Turkey 467 30 Bangladesh 422 10 tied Brazil 495 20 Japan 464 31 Indonesia 420 10 tied Hungary 495 21 Germany 455 32 Hong Kong 399 Source: Based on data reported by Matsumoto et al., 2008; see Note 7. SELF-CONSCIOUS EMOTIONS VERSUS SOCIAL EMOTIONS. A useful way of distinguishing between emotions is by comparing those that come from internal sources with those that come from external sources. This is the essence of the distinction between so-called self-conscious emotions and social emotions (for a summary, see Figure 5.2). Self-conscious emotions refer to feelings that stem from within. Examples include shame, guilt, embarrassment, and pride.8 Scientists believe that self- conscious emotions developed within self-conscious emotions Feelings that stem from within, such as shame, guilt, embarrassment, and pride.
- 546. FIGURE 5.1 Emotional Contagion in the Workplace The emotions we display tend to be picked up by others, resulting in a convergence of emotions. This so-called emotional contagion occurs regularly in the workplace, where emotions are easily spread from person to person. Can you think of situations on the job in which you “caught” the emotions of others with whom you came into contact? How about occasions in which you “spread” your emotions to others? Fa nc y/ A la m y Im ag es . CHAPTER 5 • COPING WITH ORGANIZATIONAL LIFE: EMOTIONS AND STRESS 177 Pity
- 547. Envy Jealousy Scorn Shame Guilt Embarrassment Pride Outside person Inside person SELF-CONSCIOUS EMOTIONS SOCIAL EMOTIONS FIGURE 5.2 Self-Conscious Emotions Versus Social Emotions: A Summary As indicated here, self- conscious emotions stem from within individuals, and social emotions refer to feelings stemming from outside individuals. Note the four examples in each category.
- 548. people to help them stay aware of and regulate their relationships with others. For example, we feel shame when we believe we have failed to meet expectations, and in such cases we are likely to humble ourselves to others, allowing them to have the upper hand. So, if we have done something to harm a coworker, we are likely to demonstrate—and express—feelings of embarrassment and shame, which help appease the relationship with that individual.9 Interestingly, research has shown that our brains are involved closely in this process: People who have suffered damage to the orbitofrontal portions of their brains tend to be less effective at experiencing self-conscious emo- tions and at regulating the behaviors they guide than those whose brains are intact.10 Social emotions refer to people’s feelings based on information external to themselves. Examples include pity, envy, jealousy, and scorn. For example, a worker may experience envy if she covets something that another has (e.g., a better work assignment) or pity if she feels sorry for someone else (e.g., someone who was hurt in an accident). These are all emotions likely to be experienced in the workplace.11 THE CIRCUMPLEX MODEL OF AFFECT. A popular way for scientists to differentiate between emo- tions has been by combining two different dimensions—the degree to which emotions are pleas- ant or unpleasant, and the degree to which they make one feel alert and engaged (a variable known as activation). This two-dimensional perspective is known as the circumplex model of affect (see Figure 5.3).12 This diagram illustrates how various
- 549. emotions are interrelated with respect to these two dimensions. Four major categories result. To understand how to read this diagram (hence, to understand the circumplex model of affect), look, for example, at the upper right portion of Figure 5.3. It shows that being elated is a pleasant emotion (because it makes us feel good) and that it also is a highly activated emotion (because it encourages us to take action). They fall into the activated positive affect category. The same applies to the two other emotions in that part of the diagram (enthusiastic and excited). Within the diagram, any emotions that lie directly opposite each other are characterized in the opposite manner. So, following through on our example, being bored, tired, and drowsy are emo- tions considered opposite to enthusiastic, elated, and excited. They are at the opposite ends of the two main dimensions—that is, they generate unactivated negative affect. The Basic Nature of Mood In contrast to emotions, which are highly specific and intense, we also have feelings that are more diffuse in scope, known as moods. Scientists define mood as an unfocused, relatively mild feeling that exists as background to our daily experiences. Whereas we are inclined to recognize the emotions we are feeling, moods are more subtle and difficult to detect. For example, you may say that you are in a good mood or a bad mood, but this isn’t as focused as saying that you are experiencing a certain emotion, such as anger or sadness. social emotions
- 550. People’s feelings based on information external to themselves, such as pity, envy, jealousy, and scorn. circumplex model of affect A theory of emotional behavior based on the degree to which emotions are pleasant or unpleasant and the degree to which they make one feel activated (i.e., feeling alert and engaged). mood An unfocused, relatively mild feeling that exists as background to our daily experiences. 178 PART 2 • BASIC HUMAN PROCESSES ACTIVATED UNACTIVATED • aroused Activated Negative Affect
- 551. Activated Positive Affect Unactivated Negative Affect Unactivated Positive Affect • astonished • stimulated • enthusiastic • elated • excited • happy • cheerful • delighted • unhappy UNPLEASANT PLEASANT• sad • gloomy • relaxed • content • calm • bored • tired • drowsy
- 552. • quiet • tranquil • still • distressed • fearful • jittery FIGURE 5.3 The Circumplex Model of Affect This conceptualization summarizes emotions in terms of two key dimensions: activated– unactivated and pleasant–unpleasant. The emotions within each grouping are similar to one another. Those across from one another in this diagram are considered opposite emotions. Source: Based on Huelsman et al., 2003; see Note 12. Moods fluctuate rapidly, sometimes widely, during the course of a day. Whereas favorable feedback from the boss may make us feel good, harsh criticism may put us in a bad mood. Such tem- porary shifts in feeling states—short-term differences in the way we feel—are only partly responsi- ble for the moods that people demonstrate. Superimposed over these passing conditions are also
- 553. more stable personality traits—consistent differences between people’s predispositions toward experiencing positive or negative affect, as we discussed in Chapter 4. Mood, in other words, is a combination of both who we are, personality-wise, and the conditions we face (see Figure 5.4).13 Not surprisingly, then, the moods we experience can be based on our individual qualities (e.g., being depressed), as well as the general characteristics of our work groups or organizations (e.g., the extent to which they are upbeat, energetic, and enthusiastic). With this in mind, many compa- nies today, including most of those appearing regularly on Fortune magazine’s list of the “100 Best Companies to Work For,” go out of their way to ensure that their employees have fun while on the job.14 FIGURE 5.4 Moods Matter Greatly Being predisposed toward negative affect is only one determinant of people’s moods. In addition to this stable trait, mood also is determined by more variable states, temporary conditions experienced that leave us feeling certain ways. B ru
- 554. ce K ap la n/ C ar to on ba nk .c om . CHAPTER 5 • COPING WITH ORGANIZATIONAL LIFE: EMOTIONS AND STRESS 179 The Role of Emotions and Mood in Organizations American statesman and inventor Benjamin Franklin is said to have observed that, “The Declaration of Independence only guarantees the American people the right to pursue happiness. You have to catch it yourself.” This raises a question: What happens when people do, in fact, “catch” happiness? We certainly enjoy being happy, of course, but does this have any effect on work performance? We now consider these questions.
- 555. Are Happier People More Successful on Their Jobs? To appreciate the answer to this question, let’s clarify what we mean by happy. To most social scientists, individuals considered happy are those who frequently experience positive emotions in their lives. With this in mind, can it be said that people do better on their jobs when they are happy? The answer is yes—happy workers do indeed enjoy several advantages over their less happy counterparts.15 Research shows that this takes two major forms. JOB PERFORMANCE. Happier people tend to outperform less happy people in several different ways. To begin, they tend to get better jobs—that is, ones that give them higher levels of auton- omy, meaning, and variety.16 Then, once on their jobs, they perform them more successfully.17 This has been found to occur among people in jobs ranging from dormitory resident advisor to cricket player.18 Interestingly, this same effect also occurs at the highest echelons of organizations. Happier CEOs of companies tend to have happier employees working for them. And, importantly (as we will describe in Chapter 6), happy employees are inclined to remain on their jobs and not to seek new positions elsewhere.19 In part because of this, organizations populated by happy indi- viduals tend to be more profitable than those consisting of less happy people.20 Obviously, the importance of happiness cannot be overstated when it comes to job performance. INCOME. Do happier people earn higher incomes? Yes, they
- 556. do. Research has found this to be the case in countries throughout the world. For example, high correlations between happiness and income were found among people in Germany and Russia.21 This same relationship was found even among indigenous Malaysian farmers whose only income was the value of their property and belongings.22 In these cases, because the relationships are correlational, it’s unclear whether people make more money because they’re happy or people become happy because they make more money (see Appendix 1). In either case, this connection is worth noting because it is quite strong. Why Are Happier Workers More Successful? What is behind these strong connections between happiness and work success? As in most OB phenomena, there are several answers. DECISION QUALITY. Research has found that people showing high positive affectivity do a better job of making decisions than those showing high negative affectivity.23 Specifically, people make decisions that are more accurate and more important to the group’s effectiveness, and they have greater managerial potential. This ability to make better decisions is a particularly good rea- son why happy people tend to be successful. EVALUATION. Mood also biases the way we evaluate people and things. For example, people report greater satisfaction with their jobs while they are in good moods than while they are in bad moods.24 Being in a good mood also leads people to perceive (and admit to perceiving) the positive side of others’ work. Because being in a good mood keeps
- 557. managers from perceiving their subordi- nates’ good behavior as bad (as might occur if they are biased or extremely tough), it leads them to offer the kind of encouraging feedback likely to help subordinates to improve (see Chapter 7). By contrast, managers whose bad moods lead them to evaluate their subordinates in an inappropriately negatively fashion are unable to help those subordinates improve their work. This, of course, inter- feres with the performance of those workers and the effectiveness of their managers. MEMORY: ACCURACY OF SHORT-TERM RECALL. Mood is related to memory in an interesting manner. Although the effects of mood on memory tend to be subtle, the form of this relationship is somewhat counterintuitive. Specifically, people who are in negative moods have better short- term memories (i.e., capacity to recall information that was encountered recently) than those who are in positive moods. 180 PART 2 • BASIC HUMAN PROCESSES Evidence to this effect was reported in a recent experiment conducted on days that were either cloudy and rainy (assumed to create negative moods) or sunny (assumed to create positive moods).25 Participants in the study were randomly selected shoppers who made purchases at a convenience store where 10 assorted small toys were displayed at the checkout counter. After leaving the store, these individuals were approached by a research assistant who
- 558. invited them to complete a question- naire. Responses to this instrument confirmed that people tested on sunny days were, in fact, in better moods than those tested on cloudy, rainy days. The questionnaire also assessed shoppers’ memories for the items at the checkout counter by giving them a list of 10 items that were present and another 10 items that were not present. The results summarized in Figure 5.5 reveal the negative effect of mood on memory. Specifically, compared to shoppers in positive moods, those in negative moods recalled more of the correct items and indicated seeing fewer of the incorrect items. Why did this occur? One explanation is that people who are in good moods want to preserve them, and can do so by investing fewer of their cognitive resources on attending to the world around them. And because they are less observant, they cannot recall the things they see particularly well.26 Another interesting explanation is that as a species, people have evolved in a manner that helps us adapt to nega- tive moods in an unconscious manner that is adaptive. Specifically, we may have learned to respond to negative moods by interacting with our environments carefully by observing what’s there so that we can respond to situations appropriately. This type of thinking, referred to as accommodative processing (bottom-up processing), would account for the superior memory of people in bad moods. In contrast, people in good moods have less need to be especially attentive to their environments and therefore process information in a less effortful manner by merely using the knowledge they already have at their disposal instead of taking in new information. This type of thinking, referred to as
- 559. assimilative processing (top-down processing), would account for why people in good moods would not remember things they just saw and believe they saw things they didn’t really see. Before moving on, a word of caution is in order. It would be a serious mistake to take these findings as evidence that we should avoid putting people in good moods so as to guard against failing memories. Keep in mind that these effects reflect what occurs only when people are not trying to commit things to memory, in contrast to conditions on most jobs, where people go out of their way to focus on what’s important. Under such circumstances, the subtle effects of mood demonstrated in this study are likely to be overridden by conscious efforts to process information appropriately. Would such deliberate effects also be influenced by mood? Surely, the minor mood changes induced by natural variation in weather would not make a difference here. However, major changes in mood, such as those induced by the death of a loved one or by winning large awards in the lottery, surely might impose sufficient distractions as to interfere with memory. In conclusion, the relationship between mood and memory is a complex one that is of considerable importance to understanding the behavior of people in organizations. accommodative processing (bottom-up processing) A way of processing information in which people carefully observe
- 560. what’s going on around them so that they can respond to situations appropriately. 2.50 Correct items Incorrect items 2.00 People in positive moods recalled more incorrect items than correct items People in negative moods recalled more correct items than incorrect items Av er ag e nu m be r
- 561. of it em s re ca lle d People in positive mood People in negative mood 1.50 1.00 0.50 0.00 FIGURE 5.5 The Negative Impact of Mood on Memory An experiment found that people in negative moods (due to cloudy, rainy weather) demonstrated better short-term recall than people in positive moods (due to sunny weather).
- 562. Source: Based on data reported by Forgas et al., 2009; see Note 25. assimilative processing (top-down processing) A way of processing information in which people rely on the knowledge already at their disposal instead of taking in new information. CHAPTER 5 • COPING WITH ORGANIZATIONAL LIFE: EMOTIONS AND STRESS 181 Job Performance IMPROVES Job Performance DECLINES Discourages extra effort Negative memories Encourages extra effort
- 563. Positive memoriesPositive Mood Negative FIGURE 5.6 The Effects of Mood Congruence The concept of mood congruence suggests that people’s memories match their emotions. For example, people experiencing positive moods are inclined to have positive memories. This, in turn, encourages people to put forth extra effort, thereby improving their job performance. Just the opposite occurs in the case of negative moods. MEMORY: WHAT WE RECALL? Thus far, we’ve focused on the extent to which mood influences the accuracy of what is recalled. It’s also important to note that mood impacts the nature of what is recalled as well. Specifically, it has been established that being in a positive mood helps people recall positive things, whereas being in a negative mood helps people recall negative things.27 This idea is known as mood congruence. As an example of mood congruence on the job, suppose you go to work while you’re in a particularly good mood. This is likely to lead you to recall things that happened on the job that put you in a good mood there (e.g., the friendly relationships you have with your coworkers). Likewise, someone who is in a bad mood is likely to recall any negative things associated with work, such as a
- 564. recent fight with the boss. This is important because of its potential effects on job performance. To the extent that focusing on positive things encourages people to put forth extra effort (which they would be unlikely to do when focusing primarily on how bad things are), they would be inclined to perform at higher levels than those focusing on negative aspects of the job (see Figure 5.6). COOPERATION. Mood strongly affects the extent to which people help each other, cooperate with each other, and refrain from behaving aggressively (forms of behavior we will discuss in more detail in Chapter 11). People who are in good moods also tend to be highly generous and are inclined to help fellow workers who need their assistance. People who are in good moods also are inclined to work carefully with others to resolve conflicts with them, whereas people in bad moods are likely to keep those conflicts brewing. This is yet another reason why being in a good mood enhances job performance. Clearly, people’s moods and emotions have profound effects on their performance in organizations, and for a variety of reasons. Given this importance, it’s not surprising that today’s organizational scientists have been devoting a great deal of attention to this topic.28 One way they do this is by developing theories to help explain the nature of moods and emotions. We now consider one particularly influential theory in this regard. Affective Events Theory
- 565. In recent years, one of the guiding forces in the study of emotions in organizations has been affective events theory (AET).29 This theory identifies various factors that lead to people’s emo- tional reactions on the job and how these reactions affect those individuals (see Figure 5.7).30 mood congruence The tendency to recall positive things when you are in a good mood and to recall negative things when you are in a bad mood. affective events theory (AET) The theory that identifies various factors that lead to people’s emotional reactions on the job and how these reactions affect those individuals. 182 PART 2 • BASIC HUMAN PROCESSES Beginning on the left side of Figure 5.7, AET recognizes that people’s emotions are deter- mined, in part, by various features of the work environment. For example, the way we feel is likely to be determined by various characteristics of the jobs we do (e.g., we are likely to feel good about jobs that are interesting and exciting), the demands we face (e.g., how pressured we are to meet deadlines), and by requirements for emotional labor.
- 566. The concept of emotional labor refers to the degree to which people have to work hard to dis- play what they believe are appropriate emotions on their jobs. People in service professions (e.g., waitresses and salesclerks), for example, often have to come across as being more pleasant than they really feel. As you might imagine, having to do this repeatedly can be very taxing. (We will return to this idea on pages 183–184, in connection with the concept of emotional dissonance.) These various features of the work environment are likely to lead to the occurrence of certain events. These include confronting daily hassles, unpleasant or undesirable events that put people in bad moods (e.g., having to deal with difficult bosses or coworkers). They also include experiencing more positive events known as daily uplifts. These are the opposite—namely, pleasant or desirable events that put people in good moods (e.g., enjoying feelings of recognition for the work they do). As Figure 5.7 reveals, people react to these various work events by displaying emotional reactions, both positive and negative. However, as the diagram also shows, the extent to which this occurs depends on (or, as scientists say, is “moderated by”) each of two types of personal predispositions: personality and mood. As we noted in Chapter 4, personality predisposes us to respond in varying degrees of intensity to the events that occur. In keeping with our discussion, for example, a person who has a high degree of positive affectivity is likely to perceive events in a positive manner, whereas one who has a high degree of negative affectivity is likely to
- 567. perceive those same events more negatively. Mood also influences the nature of the relationship between work events and emotional reactions, as Figure 5.7 suggests. This is in keeping with the point we made earlier—that the mood we are in at any given time can exaggerate the nature of the emotions we experience in response to an event. So, for example, an event that leads a person to experience a negative emotional reaction (e.g., having a fight with a coworker) is likely to make that individual feel even worse if he or she is in a bad mood at the time. Finally, as the theory notes, these affective reactions have two important effects. First, they promote high levels of job performance. This should not be surprising, given that we already emotional labor The psychological effort involved in holding back one’s true emotions. WORK ENVIRONMENT WORK EVENTS Characteristics of job Positive Emotional Reactions On-the-Job Reactions Negative Emotional ReactionsJob demands Requirements for emotional labor
- 568. • Daily hassles• Daily uplifts• • Job satisfaction Job performance • • Personal Predispositions Personality Mood • • • FIGURE 5.7 Affective Events Theory According to affective events theory, people’s job performance and job satisfaction are influenced by their positive and negative emotional reactions to events on the job. These events, in turn, are influenced by aspects of the work environment and various events that occur on the job. People’s emotional reactions to these events depend on such individual characteristics as their moods and aspects of their personalities. Source: Based on suggestions by Ashkanasy & Daus, 2002; see
- 569. Note 28. daily hassles Unpleasant or undesirable events that put people in bad moods. daily uplifts Pleasant or desirable events that put people in good moods. CHAPTER 5 • COPING WITH ORGANIZATIONAL LIFE: EMOTIONS AND STRESS 183 noted that happy people perform their jobs at high levels. Second, AET also notes that affective reactions are responsible for people’s job performance and job satisfaction—that is, the extent to which they hold positive attitudes toward their jobs (we will discuss this in detail in Chapter 6). Indeed, research has established very strongly that people who are inclined to experience posi- tive emotions are likely to be satisfied with their jobs.31 Putting this all together, consider the following example. You have been employed happily as a software engineer at a high-tech firm for about a year. You find the work pleasantly challenging and in line with your talents. Over the course of your workdays, you experience many enjoyable encounters with others. On this particular occasion, your boss just gave you a big pat on the back in recognition of your latest revenue-generating suggestion.
- 570. And, because you have a high degree of positive affect and you are already in a good mood when this happened, you experience a very positive reaction to this event. As a result, you are strongly motivated to perform your job at a high level and you very much enjoy your work, taking pride in it as well. Although AET contains many individual ideas, and it is relatively new, it already has received considerable support from researchers.32 Its importance rests on two key ideas—one for scientists and one for practicing managers.33 First, unlike many other theories of OB (such as the others described in this book), this approach recognizes the important role of emotions. Second, AET sends a strong message to managers: Do not overlook the emotional reactions of your employees. They may be more important than you think. In fact, when they accumulate over time, their impact can be considerable. Thus, it is clear that anyone in a supervisory capacity has to pay attention to managing emotions in the workplace. We now turn to this topic. Managing Emotions in Organizations As we discussed in Chapter 4 when describing emotional intelligence, emotions are important on the job. People who are good at “reading” and understanding emotions in others, and who are able to regulate their own emotional reactions, tend to have an edge when it comes to dealing with others.34 As we now will describe, this is only one possible way in which people manage their emotions in organizations.
- 571. Emotional Dissonance Imagine that you are a flight attendant for a major airline. After a cross-country flight with rude passengers, you finally reach your destination. You feel tired and annoyed, but you do not have the option of expressing how you really feel. You don’t even have the luxury of acting neutrally and expressing nothing at all. Instead, you are expected to act peppy and cheerful, smiling and thank- ing the passengers for choosing your airline and cheerfully saying good-bye (more like “b’bye”) to them as they exit the plane (see Figure 5.8). The conflict between the emotion you feel (anger) and the one you are required to express (happiness) may take its toll on your well-being. This example illustrates a kind of situation that is all too typical— one in which you are required to display emotions on the job that are inconsistent with how you actually feel. This phenomenon, known as emotional dissonance, can be a significant source of work- related stress (the major topic that we will discuss in the second half of this chapter).35 Emotional dissonance is likely to occur in situations in which there are strong expectations regarding the emotions a person is expected to display by virtue of his or her job requirements. Our flight atten- dant example illustrates this point. The same applies to customer service representatives, bank tellers, entertainers—just about anyone who provides services to the public. When emotional dissonance occurs, people often have to try very hard to ensure that they display the appropriate emotions. As we noted earlier, the
- 572. psychological effort involved in doing this is referred to as emotional labor. If you ever find yourself “biting your tongue”—that is, holding back from saying what you want to say—then you are expending a great deal of emotional labor. Actually, not saying what you really think is only part of the situation. Emotional labor also is invested in saying things you don’t really feel. For example, you would have to invest a great deal of emotional labor when confronting a coworker who comes to you asking you how you feel about her awful new hairdo. You don’t like it at all, but you struggle to keep your feelings to yourself (and not even to “leak” them nonverbally; see Chapter 9). When pressed to say something, you engage in “a little white lie” by telling her how very flattering it is. emotional dissonance Inconsistencies between the emotions we feel and the emotions we express. 184 PART 2 • BASIC HUMAN PROCESSES FIGURE 5.8 Emotional Labor and Emotional Dissonance in Action When people make an effort to display emotions they don’t really feel, they are likely to be engaging in emotional labor. The more these displayed emotions differ from the ones someone actually feels, the more he or she is said to experience emotional dissonance. It’s not uncommon for people who deal with
- 573. the public, such as this flight attendant, to expend high amounts of emotional labor to cover up feeling grumpy and fatigued after a long flight and with uncooperative passengers. Although this is a form of dishonesty, it is considered widely appropriate to keep from hurting people’s feelings by saying the polite thing. This discussion underscores an important point: The emotions people actually experience, known as felt emotions, may be discrepant from the emotions they show others, known as displayed emotions. This is not at all surprising. After all, our jobs do not always give us the luxury of expressing how we truly feel. To do so, such as by expressing the anger you feel toward your boss, is likely to lead to problems. As sociologists tell us, social pressure compels people to conform to expectations about which particular emotions are appropriate to show in public and which are not. As we noted earlier, such display rules vary among cultures. But they also appear to differ as a function of people’s occupational positions. It is an unspoken rule, for example, that an athletic coach is not supposed to be openly hostile and negative when speaking about an opponent (at least, when doing so in public). It also is expected that people considered “professionals,” such as doctors and lawyers, demonstrate appropriate decorum and seriousness when interacting with their patients and clients. Should your own doctor or lawyer respond to your difficult situation by saying, “Wow, I sure wouldn’t want to be in your shoes,” you may find yourself looking for
- 574. someone else to help you. Controlling Anger (Before It Controls You) Quite often, behaving appropriately in business situations requires controlling negative emo- tions, particularly anger. After all, to be successful we cannot let the situations we face get the better of us. It’s perfectly natural for anyone to get angry, particularly on the job, where there may be a great deal to anger us. We can be made angry, for example, by feeling unfairly treated (see Chapter 2), by believing that we are disrespected by others, by feeling that we are being attacked or threatened in some way, and the like. Although we all know what anger is, and we have experienced it many times (perhaps too many), a precise definition is in order. By anger, scientists are referring to a heightened state of emotional felt emotions The emotions people actually feel (which may differ from displayed emotions). displayed emotions Emotions that people show others, which may or may not be in line with their felt emotions. anger A heightened state of emotional arousal (e.g., increased heart rate,
- 575. rapid breathing, flushed face, sweaty palms, etc.) fueled by cognitive interpretations of situations. V ar io I m ag es G m bH & C o. K G /A la m y Im
- 576. ag es . CHAPTER 5 • COPING WITH ORGANIZATIONAL LIFE: EMOTIONS AND STRESS 185 arousal (e.g., increased heart rate, rapid breathing, flushed face, sweaty palms, etc.) fueled by cogni- tive interpretations of situations. Anger reactions can run the gamut from irritation to outrage and fury. Importantly, there are situations in which displaying anger can be purposeful and construc- tive. For example, to get a subordinate to take immediate action in a dangerous situation, a super- visor may express anger by raising her voice and looking that person straight in the eye. This would be the case should a military officer display her anger purposely to express urgency when ordering a soldier under her command to move immediately out of a combat zone. Because of its constructive and highly controlled nature, anger of this type is not problematic. In fact, it can be quite valuable. Where anger can be dangerous, however, is when it erupts violently and is out of control. We need to be concerned about this because aggression is a natural reaction to anger. The challenge people face is to control their anger appropriately. This is the idea behind the practice of anger management—systematic efforts to reduce people’s emotional feelings of
- 577. anger and the physiological arousal it causes. Because we often cannot eliminate, avoid, or alter the things that anger us, it’s important to learn to control our reactions. For some suggestions as to how to go about doing so, see the OB in Practice section above. The Basic Nature of Stress Stress is an unavoidable fact of organizational life today, taking its toll on both individuals and orga- nizations. According to one survey, 90 percent of American workers report feeling stressed at least once a week, and 40 percent describe their jobs as very stressful most of the time.37 What stresses them? Lots of things, but having too much work to do and fear of being laid off are among people’s most common concerns. As you might imagine, these sources of stress are both harmful to individual workers and costly to their organizations. In fact, about half of all American workers report that stress has adversely affected their health.38 Not surprisingly, stress on the job has been linked to increases anger management Systematic efforts to reduce people’s emotional feelings of anger and the physiolog- ical arousal it causes. OB in Practice Managing Anger in the Workplace People often say that “it’s good to let it all hang out” by expressing one’s anger fully. The American Psychological Association advises, however, that this is a dangerous myth
- 578. because people sometimes use this belief to grant themselves license to explode and take things too far.36 And this, of course, does nothing to alleviate the source of your anger. In fact, exces- sive displays of anger are likely to make things worse. This raises a critical question: What, precisely, can we do to control our anger? Although it’s not always easy to keep our anger in check—and indeed, there are professionals who often are hired to help people do this (although rarely in the form taken in the 2003 Adam Sandler and Jack Nicholson film, Anger Management)—we all can do various things to control our- selves. Some of the key ones are as follows. 1. Practice relaxation. People who display dangerous amounts of anger often find it difficult to relax. As a result, they get frustrated easily and are inclined to “fly off the handle.” By learning to relax, however, such individuals are better able to take control of their emotions. So, how can we do this? As we mention later in this chapter, meditation is especially helpful for getting people to keep their anger in check. 2. Change the way you think. When we get angry, we tend to think irrationally, making things worse than they really are—and this, of course, will not help. Being logical about the source of your anger is what’s needed, and this involves getting clear facts and thinking things through. So, instead of screaming your head off the next time you’re angry, try to figure out exactly what’s going on. And if you cannot do so yourself, get someone to help you—a friend, for example, can be useful in pointing out any irrational thoughts you may have. 3. Use humor. There’s nothing like humor to take the edge
- 579. off your fury. Being silly can diffuse anger, keeping it in check. So, the next time you find yourself thinking that someone is a “dirtbag,” don’t come out and say so. Instead, think about exactly what a bag of dirt looks like. Imagining that person’s head atop a burlap sack of topsoil may give you pause, making you chuckle. And this momentary relief may help you regain your composure. 4. Leave the room. When you feel anger welling up inside, move to another room or even leave the building. Changing your surroundings may help you escape whatever or who- ever is causing you to be so angry. Even such temporary avoidance may be enough to keep you from saying or doing something that might make you sorry. Additionally, the time spent moving elsewhere also can help by distracting you from the immediacy of the situation. If there ever was a time to refer to something as “easier said than done,” this is it. However, if there ever was something that “must be done, or else,” this also is it. Because so much is riding on the proper management of anger, efforts to put this advice to work for you are sure to pay off in the long run. 186 PART 2 • BASIC HUMAN PROCESSES stress The pattern of emotional and physiological reactions occurring in response to demands from within or outside an organization. See stressor.
- 580. in accidents, lost productivity, and of course, phenomenal boosts in medical insurance. Overall, work-related stress has been estimated to cost American companies $300 billion annually.39 Considering these sobering statistics, it is clearly important to understand the nature of organizational stress. Formally, scientists define stress as the pattern of emotional and physi- ological reactions occurring in response to demands from within or outside organizations. In this portion of the chapter, we will review the major causes and effects of stress. Importantly, we also will describe various ways of effectively managing stress so as to reduce its negative impact. Before doing this, however, we will describe the basic nature of stress in more detail, beginning with an overview of stressors. Stressors in Organizations What do each of the following situations have in common? � You are fired the day before you become eligible to receive your retirement pension. � You find out that your company is about to eliminate your department. � Your boss tells you that you will not be getting a raise this year. � Your spouse is diagnosed with a serious illness. The answer, besides that they are all awful situations, is that each situation involves external events (i.e., ones beyond your own control) that create extreme demands on you. Stimuli of this type are known as stressors, formally defined as any demands, either physical or psychological
- 581. in nature, encountered during the course of living. Scientists often find it useful to distinguish stressors in terms of how long-lasting they are. This results in the following three major categories (see Figure 5.9): � Acute stressors are those that bring some form of sudden change that threatens us either physically or psychologically, requiring people to make unwanted adjustments. For exam- ple, you may be assigned to a different shift at work, requiring you to get up earlier in the morning and to eat meals at different times. As your body’s equilibrium is disrupted, you respond physiologically (e.g., by being tired) and emotionally (e.g., by being grouchy). � Episodic stressors are the result of experiencing several acute stressors in a short period of time, such as when you “have one of those days” in which everything goes wrong. In other words, you are experiencing particularly stressful episodes in life. This would be the case, for example, if within the course of a week you have a serious disagreement with one of your subordinates, you lose a major sales account, and then, to top it off, the pipes burst in your office, causing water to ruin your important papers and your computer. For a list of some of the most common episodic stressors, see Table 5.2. � Chronic stressors are the most extreme type of stressor because they are constant and unrelenting in nature, having a long-term effect on the body, mind, and spirit. For example,
- 582. a person experiences chronic stressors if he or she is in a long- term abusive relationship with a boss or spouse or has a debilitating disease (e.g., arthritis or migraine headaches) that adversely affects his or her ability to work. In recent years, in which layoffs have been common, people have suffered stress due to considerable uncertainties about their future. stressor Any demands, either physical or psychological in nature, encountered during the course of living. acute stressor Stressors that bring some form of sudden change that threatens us either physi- cally or psychologically, requiring people to make unwanted adjustments. Acute stressors Episodic stressors How long does the stressor last?Brief Duration Long Duration Chronic
- 583. stressors FIGURE 5.9 Different Types of Stressors Whereas acute stressors tend to be of brief duration, chronic stressors endure for a long period of time. Episodic stressors generally last for intermediate periods of time. episodic stressor The result of experiencing several acute stressors in a short period of time. chronic stressor The most extreme type of stressor, constant and unrelenting in nature, and having a long-term effect on the body, mind, and spirit. CHAPTER 5 • COPING WITH ORGANIZATIONAL LIFE: EMOTIONS AND STRESS 187 The Cognitive Appraisal Process The Roman emperor and philosopher Marcus Aurelius Antonius (A.D. 121–180) is quoted as saying, “If you are distressed by anything external, the pain is not due to the thing itself, but to your estimate of it; and this you have the power to revoke at any moment.” This observation is as true today as it was some 2,000 years ago, when first spoken. The basic idea is that the mere pres-
- 584. ence of potentially harmful events or conditions in the environment is not enough for them to be stressors. For an event to become a stressor to someone, he or she must think of it as a stressor and acknowledge the danger and the difficulty of coping with it. As you think about the events or conditions you encounter, some may be considered especially threatening (warranting your concern), whereas others pose less of a problem to you (and can be ignored safely). Your assess- ment of the dangers associated with any potential stressor is based on cognitive appraisal—the process of judging the extent to which an environmental event is a potential source of stress. Let’s consider this process more closely. On some occasions, people appraise conditions instantly. Suppose, for example, you are camping in the woods when a bear looks like it’s going to attack. You immediately assess that you are in danger and run away as fast as you can. This is a natural reaction, which biologists call a flight response. Indeed, making a rapid escape from a dangerous situation occurs automati- cally. So, without giving the matter much thought, you immediately flee from a burning office building because you judge the situation to be life-threatening. The situation is extreme, so you appraised it as dangerous automatically. In the blink of an eye, you recognized the danger and sought to escape. Although you may not have deliberated all the pros and cons of the situation, you did engage in a cognitive appraisal process: You recognized the situation as dangerous and took action instantly.
- 585. Most of the situations managers face are neither as extreme nor as clear-cut. In fact, the vast majority of would-be stressors become stressors only if people perceive them as such. For example, if you are an expert at writing sales reports and really enjoy doing them, the prospect of having to work extra hours on preparing one is not likely to be a stressor for you. However, for someone else who finds the same task to be an obnoxious chore, confronting it may well be a stressor. Likewise, the deadline might not be a stressor if you perceive that it is highly flexible and that nobody takes it seriously or if you believe you can get an extension simply by asking. The point is simple: Whether or not an environmental event is a stressor depends on how it is perceived. What might be a stressor for you under some circumstances might not be at other times or even for someone else under the same conditions. Remember, it’s all just a matter of how things are appraised cognitively. As you might imagine, it is important to appraise potential threats as accurately as possible. For example, to think that everyone in your department is happy when, in fact, they are all plan- ning to quit surely would be a serious mistake. Likewise, interpreting a small dip in sales as a sign of economic collapse would cause you needless worry and may spark panic in others. As such, it is important to recognize what you can do as a manager to ensure that you and those cognitive appraisal A judgment about the stressfulness of a situation
- 586. based on the extent to which someone perceives a stressor as threatening and is capable of coping with its demands. TABLE 5.2 Common Episodic Stressors in the Workplace Many of the most commonly encountered stressors in organizations are episodic in nature. If you think about these, it’s not difficult to recognize how they actually are composed of several different acute stressors. For example, fear of losing one’s job includes concerns over money, threats to self-esteem, embarrassment, and other acute stressors. � Lack of involvement in making organizational decisions � Unrelenting and unreasonable expectations for performance � Poor communication with coworkers � Fear of losing one’s job � Spending long amounts of time away from home � Office politics and conflict � Not being paid enough given one’s level of responsibility and performance flight response An automatic rapid escape from a dangerous situation.
- 587. 188 PART 2 • BASIC HUMAN PROCESSES around you are assessing potential stressors accurately. For some recommendations in this regard, see Table 5.3. Bodily Responses to Stressors When we encounter stressors, our bodies (in particular, our sympathetic nervous systems and endocrine systems) are mobilized into action, such as through elevated heart rate, blood pressure, and respiration.40 Arousal rises quickly to high levels, and many physiological changes take place. If the stressors persist, the body’s resources eventually may become depleted, at which point people’s ability to cope (at least physically) decreases sharply, and severe biological damage may result. These are the patterns of responses that we have in mind when we talk about stress. To illustrate this, imagine that you are in an office building when you suddenly see a fire raging. How does your body react? As a natural, biological response, your body responds in several ways—including immediately after experiencing the stressor, a few minutes later, and after repeated exposure (see Figure 5.10). For example, certain chemicals are released that make it possible for us to respond. Adrenaline boosts our metabolism, causing us to breathe faster, taking in more oxygen to help us be stronger and run faster. Aiding in this process, blood flows more rapidly (up to four times faster than normal) to prime the muscles, and other fluids are
- 588. diverted from less essential parts of the body. As a result, people experiencing stressful conditions tend to experience dry mouths as well as cool, clammy, and sweaty skin. Other chemicals are activated that suppress the parts of the brain that control concentration, inhibition, and rational thought. (By the way, this is why people in emergency situations don’t always think rationally or act politely.) In short, when exposed to stressors the body kicks into a self-protective mode, marshalling all its resources to preserve life. However, when this happens frequently, the chronic responses can be dangerous. To the extent that people appraise various situations as stressors, they are likely to have stress reactions. And often these can have damaging behavioral, psychological, and/or medical effects. Indeed, physiological and psychological stress reactions can be so great that eventually they take their toll on the body and mind, resulting in such maladies as insomnia, cardiovascular disease, and depression. Such reactions are referred to as strain, defined as deviations from normal states of human function resulting from prolonged exposure to stressful events. By nature, some people are less likely to be affected adversely by strain. Such persons are said to be highly resilient. The quality of resiliency refers to the extent to which one is able to “bounce back” from potentially stressful situations without being harmed by them. As you probably have seen in dealing with different people in your own lives, some individuals are far more resilient than others. To see how you fare in this regard, complete the
- 589. Individual Exercise on page 202. TABLE 5.3 Tips for Assessing Potential Stressors Accurately It is important to recognize potential stressors and to take appropriate action. However, it can be very disruptive to assume mistakenly that something is a stressor when, in reality, nothing is wrong. With this in mind, here are some useful guidelines for appraising potential stressors accurately. Suggestion Explanation Check with others. Ask around. If others are not concerned about a situation, then maybe neither should you be concerned. Discussing the situation with people either may alleviate any feelings of stress you may have had or it may verify that something should, in fact, be done (perhaps even more than you planned). Look to the past. Your best bet for deciding what to do may be to consider what has happened over the years. You may want to be concerned about something that has caused problems in the past, but worrying about condi- tions that haven’t been problems before might only make things worse by distracting your attention from what really matters. Gather all the facts. It’s too easy to jump to conclusions, seeing problems as situations that really aren’t so bad. Instead of sensing a problem and assuming the worst, look for more objective information about the situation. Avoid negative mental Too often, people talk themselves into perceiving situations as being worse than they really are,
- 590. thereby monologues. adding to stress levels.You should avoid such negative mental monologues, focusing instead on the positive aspects of the situations you confront. strain Deviations from normal states of human function- ing resulting from prolonged exposure to stressful events. resiliency The extent to which one is able to “bounce back” from potentially stressful situations without being harmed by them. CHAPTER 5 • COPING WITH ORGANIZATIONAL LIFE: EMOTIONS AND STRESS 189 Immediate Responses (to build strength to escape danger) • Lungs take in more oxygen • Heart rate and blood pressure
- 591. increase • Muscles tense Delayed Responses (changes made a few minutes after perceiving stressor) • Immune system infection-fighting capacity is diminished • Fat stored in liver is created into fuel • Adrenal glands secrete cortisol to regulate metabolism Chronic Responses (harms the body if activated too often) • Decreased blood flow in intestines creates vulnerability to ulcers • Elevated blood pressure can harm the elasticity of blood vessels, harming
- 592. circulation, creating vulnerability to heart attacks Stressor perceived FIGURE 5.10 The Body’s Reactions to Stress As summarized here, the human body responds to stress in various ways involving several different physiological mechanisms. These responses differ based on whether they occur immediately after perceiving a stressor, a few minutes later, or after repeated exposure to stressors. Sometimes people find themselves worn down by chronic levels of stress. Such people are often described as suffering from burnout—a syndrome of emotional, physical, and mental exhaustion coupled with feelings of low self-esteem or low self- efficacy, resulting from prolonged exposure to intense stress and the strain reactions following from them.41 Fortunately, some of the signs of burnout are clear, if you know what to look for. The distinct characteristics of burnout are summarized in Table 5.4.42
- 593. Let’s summarize where we have been thus far. We have identified physical and psychological causes of stress known as stressors. Through the cognitive appraisal process, these lead to various burnout A syndrome of emotional, physical, and mental exhaus- tion coupled with feelings of low self-esteem or low self- efficacy, resulting from pro- longed exposure to intense stress, and the strain reac- tions following from them. TABLE 5.4 Symptoms of Burnout Burnout is a serious condition resulting from exposure to chronic levels of stress. The symptoms of burnout, summarized here, are important to recognize so as to avoid making an already bad state of affairs even worse. Anyone experiencing these symptoms should seek medical attention. Symptom Description Physical exhaustion Victims of burnout have low energy and feel tired much of the time. They also report many symptoms of physical strain, such as frequent headaches, nausea, poor sleep, and changes in eating habits (e.g., loss of appetite). Emotional exhaustion Depression, feelings of helplessness, and feelings of being trapped in one’s job are all part of burnout.
- 594. Depersonalization People suffering from burnout often demonstrate a pattern of attitudinal exhaustion known as depersonalization. That is, they become cynical, derogating others and themselves, including their jobs, their organizations, and even life in general. Feelings of low personal People suffering from burnout conclude that they haven’t been able to accomplish much in the accomplishment past and assume that they probably won’t succeed in the future. Source: Based on information in Bakker et al., 2000; see Note 40. 190 PART 2 • BASIC HUMAN PROCESSES physical and mental stress reactions. With prolonged exposure, physiological, behavioral, and psychological strain reactions result. Ultimately, in some cases, burnout occurs. For a graphic overview of this important process, see Figure 5.11. Major Causes of Stress in the Workplace Stress is caused by many different factors. For example, stress may be caused by personal factors such as problems with family members, financial problems, and illness. Stress also may be caused by societal factors, such as concerns over crime, terrorism, and downturns in the economy. However, in this book, we are concerned mostly about job-related stress. What causes stress in work settings? Unfortunately, as you will see, the list is quite long. Many different
- 595. factors play a role in creating stress in the workplace. Occupational Demands Some jobs, such as emergency room physician, police officer, firefighter, and airline pilot, expose the people who hold them to high levels of stress. Others, such as college professor, janitor, and librarian, do not. This basic fact—that some jobs are generally (but not always) much more stress- ful than others—has been confirmed by the results of a survey involving more than 130 different occupations.43 For a listing of some of the most and least stressful jobs, see Table 5.5. What, precisely, makes some jobs more stressful than others? Research has shown that sev- eral features of jobs determine the levels of stress they generate. Specifically, people experience greater stress the more their jobs require: � making decisions � constantly monitoring devices or materials � repeatedly exchanging information with others � working in unpleasant physical conditions � performing unstructured rather than structured tasks The greater the extent to which a job possesses these characteristics, the higher the level of stress that job produces among individuals holding it. Nurses and long-distance bus drivers perform jobs that match this profile—and, not surprisingly, people in these occupations tend to show many of the adverse signs of stress. This is not to imply that people do not experience stress in every job. In fact, as you can see from Table 5.5, a variety of sources of stress can be found in different types of jobs.44
- 596. Conflict Between Work and Nonwork If you’ve ever had to face the demands of working while at the same time trying to raise a family (or if you know someone who has been in this situation), you are probably well aware of how very stressful this can be. Not only must you confront the usual pressures to spend time at Cognitive Appraisal Threatening situation Stressors (physical) Stressors Stressors (psychological) • Beyond control exposure Prolonged Strain (physiological) Strain (behavioral)
- 597. Strain (psychological) • Adverse Reactions Physical ailments • Emotional ailments • Impaired job performance • FIGURE 5.11 Stressors, Stress, and Strain: Recognizing the Distinctions Stimuli known as stressors (which are both physical and psychological in nature) lead to stress reactions when they are cognitively appraised as being threatening and beyond one’s control. The deviations from normal states resulting from stress are known as strain. Both physical and emotional ailments as well as impaired job performance result from strain.
- 598. CHAPTER 5 • COPING WITH ORGANIZATIONAL LIFE: EMOTIONS AND STRESS 191 TABLE 5.5 Top Ten Most Stressful and Least Stressful Jobs In America Although very stressful situations can be found on just about any job, the ones shown here tend to have the highest and lowest overall levels of stress associated with them. As you review this list, you’re likely to notice that the most stressful jobs contain high levels of the stress-inducing characteristics indicated in the bullet list on page 190. For example, air traffic controllers have to monitor devices, and police officers have to make decisions in unpleasant working conditions. (These are generalizations, of course; in some cases conditions may vary, making particular jobs more stressful or less stressful.) Top 10 Most Stressful Jobs Top 10 Least Stressful Jobs 1. Inner-city high school teacher 1. Forester 2. Police officer 2. Bookbinder 3. Miner 3. Telephone line worker 4. Air traffic controller 4. Toolmaker 5. Medical intern 5. Millwright 6. Stockbroker 6. Repair person 7. Journalist 7. Civil engineer
- 599. 8. Customer service worker 8. Therapist 9. Secretary 9. Natural scientist 10. Waiter 10. Sales representative Source: Health Magazine. work while concentrating on what you’re doing, but you also must attend to the demands placed on you by members of your family (e.g., to spend time with them). When people confront such incompatibilities in the various sets of obligations they have, they are said to experience role conflict (see Chapter 11). As you might expect, when we experience conflicts between our work and nonwork lives, something has to give. Not surprisingly, the more time people devote to their jobs, the more events in their nonwork lives (e.g., personal errands) adversely affect their work lives (e.g., not being able to complete assignments on time). The stressful nature of role conflicts is particularly apparent in one group whose members are often expected to rapidly switch back and forth between the demands of work and family—a source of stress known as role juggling. This is an especially potent source of stress in one very large segment of the population—working parents.45 Indeed, the more people, such as working mothers and fathers, are forced to juggle the various roles in their lives, the less fulfilling they find those roles to be, and the more stress they suffer in their lives. (To see what one company is doing to minimize this problem, see Figure 5.12.)
- 600. Sexual Harassment: A Pervasive Problem in Work Settings There can be no doubt that a particularly troublesome source of stress in today’s workplace is sexual harassment—unwanted contact or communication of a sexual nature, usually against women. The stressful effects of sexual harassment stem from both the direct affront to the victim’s personal dignity and the harasser’s interference with that employee’s capacity to do the job. After all, it’s certainly difficult to pay attention to what you’re doing on your job when you have to concentrate on ways to ward off someone’s unwanted attentions! Not surprisingly, sexual harassment has led to voluntary turnover, but it also has caused some people to experience many severe symptoms of illness, including various forms of physical illness.46 Unfortunately, this particular source of work-related stress is shockingly common. Indeed, when asked in a New York Times/CBS News poll whether they had ever been the object of unwanted sexual advances, propositions, or sexual discussions from men who supervise them, 30 percent of the women surveyed answered yes. And this is not a one-sided perception: When asked if they had ever said or done something at work that could be con- strued by a female colleague as harassment, 50 percent of the men polled admitted that they had, in fact, done so.47 There’s good news, however. These days, many companies are training employees in ways to avoid sexual harassment. In fact, beginning in 2006,
- 601. California law required employers to provide two hours of sexual harassment training and education to all supervisory employees. role conflict Incompatibilities between the various sets of obligations people face. role juggling The need to switch back and forth between the demands of work and family. sexual harassment Unwanted contact or communication of a sexual nature, usually against women. 192 PART 2 • BASIC HUMAN PROCESSES FIGURE 5.12 Aflac’s Effort to Reduce Role Juggling You probably know Aflac’s talking duck commercials, but you might not realize that this Columbus, Georgia–based insurance company runs two on-site child-care
- 602. centers serving 523 children, more than any other such corporate facility in Georgia. These facilities are welcomed by the company’s many employees who are parents, who otherwise would have difficulties managing their time— contributing to stress stemming from the demands of having to juggle their roles as parents and employees. At least 14 other states either require or strongly encourage employers to provide some type of sexual harassment training. Efforts of this type (whether or not mandated by law) are helping people become aware of ways they are behaving that may be considered inappropriate. What’s more, this seems to be having a beneficial effect on the numbers of sexual harassment cases. U.S. government figures have shown a steady decline in the number of sexual harassment cases reported since 1997. Whereas 15,887 sexual harassment cases were filed in 1997, that figure dropped to 12,696 in 2009.48 Despite this improvement, the number is 12,696 too high as each case reflects individuals who are being harmed. Although the reduction is an encouraging sign that this important source of stress may be on the decline as today’s employees become more enlightened, it’s important to note that sexual
- 603. harassment is far from gone. When you consider that the number of cases filed reflects only a small proportion of incidents of harassment that actually occur, it is apparent that sexual harass- ment remains a prevalent source of stress in today’s workplace, one that should be taken seriously. Role Ambiguity: Stress from Uncertainty Even if individuals are able to avoid the stress associated with role conflict, they still may encounter an even more common source of job-related stress: role ambiguity. This occurs when people are uncertain about several aspects of their jobs (e.g., the scope of their responsibilities, what’s expected of them, how to divide their time among various duties). Most people dislike such uncertainty and find it quite stressful, but it is difficult to avoid. In fact, role ambiguity is quite common: 35 to 60 percent of employees surveyed report experiencing it to some degree.49 Clearly, managers who are interested in promoting a stress-free workplace should go out of their ways to help employees understand precisely what they are expected to do. As obvious as this may sound, such advice is all too frequently ignored in actual practice. role ambiguity Uncertainty about what one is expected to do on a job. Ji m W
- 604. es t/A la m y Im ag es . CHAPTER 5 • COPING WITH ORGANIZATIONAL LIFE: EMOTIONS AND STRESS 193 Overload and Underload When the term work-related stress is mentioned, most people envision scenes in which employees are asked to do more work than they possibly can handle. Such an image is indeed quite legiti- mate, for such overload is an important cause of stress in many work settings. Findings of a recent study support this image.50 Half of the 1,300 Americans who completed a survey about their work lives indicated that they routinely skip lunch to complete the day’s work. And 52 percent reported that they often had to work more than 12 hours a day to get their jobs done. If you think about it, this isn’t particularly surprising. In today’s business environment, where many companies are trimming staff size (the phenomenon
- 605. known as downsizing, which we will discuss in Chapter 16), fewer employees are being asked to do more work. Not only does this cause overload, but so too does the proliferation of information with which people are bombarded today as life involves communication via more sources than ever before. Scientists use the term information anxiety to refer to pressure to store and process great deals of informa- tion in our heads and to keep up constantly with gathering it. This constitutes an all-too real source of overload today. Overload is only part of the total picture when it comes to stress. Although being asked to do too much can be stressful, so too can being asked to do too little. In fact, there seems to be con- siderable truth in the following statement: “The hardest job in the world is doing nothing—you can’t take a break.” Underload leads to boredom and monotony. Since these reactions are quite unpleasant, underload, too, can be stressful. Responsibility for Others: A Heavy Burden By virtue of differences in their jobs, some individuals, such as managers, tend to deal more with people than others. And people, as you probably suspect, can be a major source of stress. In gen- eral, individuals who are responsible for other people experience higher levels of stress than those who have no such responsibility (see Figure 5.13). Such individuals are more likely to report feelings of tension and anxiety and are more likely to show overt symptoms of stress, such as ulcers or hypertension, than their counterparts in nonsupervisory positions.
- 606. This probably isn’t too surprising if you think about it. After all, managers are often caught between the need to satisfy their staff members (e.g., giving them raises) while simultaneously meeting the demands of their own superiors (e.g., maintaining budgets). They also are often faced with meeting a variety of demands, creating responsibilities that weigh heavily on them. Not surprisingly, many managers think of stress as a normal, everyday part of their jobs. Importantly, managers who deal with people ineffectively—such as those who communi- cate poorly and who treat people unfairly—add stress to the lives of the people they supervise. As you surely know from your own experiences, a poor manager can be quite a significant source of stress. That said, it is clear that knowing and effectively practicing what you have learned about OB in this book can help alleviate stress among others in the workplace. Lack of Social Support: The Costs of Isolation According to an old saying, “misery loves company.” With respect to stress, this statement implies that if we have to face stressful conditions, it’s better to do so along with others (and with their support) rather than alone. Does this strategy actually work? In general, the answer is yes. Research has shown that when individuals believe they enjoy the friendship and support of others at work—that is, when they have social support—their ability to resist the adverse effects of stress increases. For example, research has found that police
- 607. officers who feel they can talk to their colleagues about their reactions to a traumatic event (such as a shooting) experience less stressful reactions than those who lack such support.51 Clearly, social support can be an impor- tant buffer against the effects of stress.52 Social support can come from many different sources. One of these is cultural norms (e.g., caring for the elderly is valued among the Japanese, thereby reducing the social isola- tion many elderly people otherwise experience). Another source of social support is social institutions (e.g., counseling from the church or school officials, help from the Red Cross). And, of course, probably the most important and valuable source of support comes from information anxiety Pressure to store and process a great deal of information in our head and to keep up constantly with gathering it. social support The friendship and support of others, which help minimize reactions to stress. 194 PART 2 • BASIC HUMAN PROCESSES FIGURE 5.13
- 608. Responsibility for Others: A Common Stressor As this manager can probably tell you, one of the greatest ongoing sources of stress on the job stems from the fact that he has responsibility over others. Even when there are no problems, simply knowing that one’s decisions can have a major impact on others has the potential to trigger stress in many people. one’s own friends and family members. These various sources help in several different ways.53 These are as follows: � Boosting self-esteem. Others can help make us feel better about ourselves. � Sharing information. Talking to other people can help us learn about ways of coping with problems and give us a new perspective on things. � Providing diversion. Spending time with others can be a friendly diversion from life’s stressors, taking your mind off them. � Giving needed resources. Time spent with others can result in their offering to help by giving money, advice, or other recourses needed to alleviate stress.
- 609. As we have shown here, not only does misery love company, but company also can help alleviate misery. This is something worth remembering the next time you feel stressed. Remember, don’t go it alone. Friends can help, so seek them out. Adverse Effects of Organizational Stress By now, you probably are convinced that stress stems from many sources, and that it has impor- tant effects on the people who experience it. What may not yet be apparent, though, is just how powerful and far-reaching such effects can be. In fact, so widespread are the detrimental effects of stress (i.e., strain) that it has been estimated that their annual costs exceed 10 percent of the U.S. gross national product!54 Let’s now examine some of the specific problems linked to stress. Lowered Task Performance—But Only Sometimes The most current evidence available suggests that stress exerts mainly negative effects on task performance. For the most part, the greater the stress people encounter on the job, the more adversely affected their job performance tends to be.55 In some cases, this is particularly V ar io I m ag
- 610. es G m bH & C o. K G /A la m y Im ag es . CHAPTER 5 • COPING WITH ORGANIZATIONAL LIFE: EMOTIONS AND STRESS 195 serious. For example, one study reported that people who are experiencing higher levels of stress have significantly higher chances of having an auto accident than those experiencing
- 611. lower levels of stress.56 It is important to note, however, that the adverse relationship between stress and job performance does not always occur. Specifically, some people seem to “rise to the occasion” and turn in exceptional performances when confronted with what appear to be stressors. There appear to be two reasons for this. First, because some people are expert in the tasks being performed they are highly confident in what they are doing. This leads them to appraise a potentially stressful situation as challenging (and not stressful) rather than threatening (and therefore, stressful). Second, some people are by nature high sensation-seekers and thrive on stress. These individuals find stress exhilarating and thrilling and are highly motivated to perform well under such conditions. Most people, however, are just the opposite. They find high levels of stress upsetting, which interferes with their job performance. Desk Rage A particularly unsettling manifestation of stress on the job that has become all too prevalent in recent years is known as desk rage—the lashing out at others in response to stressful encounters on the job. Just as angered drivers have been known to express their negative reactions to others in dangerous ways (commonly referred to as road rage), so too have office workers been known to behave violently toward others when feeling stress from long hours and difficult working conditions. What makes desk rage so frightening is how extremely widespread it is and. For
- 612. some suggestions that managers may follow to address the problem of desk rage, see Table 5.6.57 Stress and Health: The Silent Killer How strong is the link between stress and personal health? The answer, say medical experts, is “very strong, indeed.” In other words, physiological strain reactions can be quite severe. Some experts estimate that stress plays a role in anywhere from 50 to 70 percent of all forms of physi- cal illness.58 Included in these figures are some of the most serious and life-threatening ailments known to medical science. A list of some of the more common ones is shown in Table 5.7.59 Even the most cursory look at this list reveals that the health- related effects of stress are not only desk rage Lashing out at others in response to stressful encounters on the job. TABLE 5.6 Addressing Desk Rage: Useful Tips for Managers Because desk rage is all too prevalent, it’s important for managers to recognize how to address it. Experts have offered the following tips. Tip Comment Take control of your emotions whenever an employee seems to lose control. Don’t do anything that might keep the argument going or make it
- 613. worse. Carefully consider what led the person to be so angry. By identifying the trigger, you are in a good position to straighten things out, such as by offering an explanation about something. Immediately encourage everyone involved to take a deep breath. Breathing deeply helps people calm down; doing so will help you to discuss the situation calmly. Take the feud outside the workplace. Discussing heated personal issues in the workplace may involve others, but going outside—to lunch, say—moves the discussion to neutral territory where calm heads may prevail. If someone seems to be having a particularly bad day, ask if there’s anything you can do to help. By intervening, you may be able to help with problems (e.g., overload), thereby eliminating conditions that promote anger. Stay physically clear of someone who may be losing control. By keeping an angry individual at arm’s length, you may avoid a physical confrontation. If you witness someone yelling at a coworker, intervene directly only if you are a supervisor. If you are a colleague, report this to your supervisor. Direct intervention by a colleague may only make things worse by getting him or her involved as well. However, anyone witnessing acts of desk rage should report them at once to some- one who has the authority to intervene.
- 614. Source: Lorenz, 2004; see Note 57. 196 PART 2 • BASIC HUMAN PROCESSES TABLE 5.7 Health-Related Consequences of Stress Stress causes a variety of different health problems, including medical, behavioral, and psychological problems. Listed here are some of the major consequences within each category. Medical Consequences Behavioral Consequences Psychological Consequences Heart disease and stroke Smoking Family conflict Backache and arthritis Drug and alcohol abuse Sleep disturbances Ulcers Accident proneness Sexual dysfunction Headaches Violence Depression Cancer Appetite disorders Diabetes Cirrhosis of the liver Lung disease Source: Based on material reported by Quick et al., 2008; see Note 59.
- 615. quite widespread but also extremely serious. With this in mind, it’s not surprising that many of today’s companies are taking steps to keep stress in check. We examine these in the next section of this chapter. (Might you find differences between women and men with respect to their responses to stress, such as their likelihoods of showing signs of burnout? For a look at this ques- tion, see the Today’s Diverse and Global Organizations section below.) Today’s Diverse and Global Organizations Do Women and Men Respond Differently to Stress? Although anyone’s life can be stressful, it seems that women generally face more stressors than men. If nothing else, women are more likely than men to carry the primary responsibility for raising children at home while also facing responsibilities on the job. Women also are more likely than men to be victims of sexual harassment on the job. And women are more likely than men to confront discriminatory practices that keep them from advancing as rapidly on the job. Considering these things, it is not surpris- ing that surveys have found that women face more stressors and are affected more adversely by them than men.60 Women and men differ not only with respect to the overall amounts of stress they face, but also with respect to its various forms. In fact, compared to men, women confront stress from a wider variety of sources. Women encounter more changes and greater pressure to perform well on the job. For them, signs of
- 616. stress are most likely to be found whenever their jobs are chaotic or demanding. For men, however, work is most likely to be stress- ful when facing ambiguous demands about what to do or when working in a highly competitive atmosphere. Interestingly, both men and women seek relief from stress by engaging in some of the same leisure-time activities. For example, both groups do things that make them laugh and also seek to reduce stress by attending religious services. However, research shows that men and women also differ in their particular choices of leisure activities to help cope with stress.61 For example, whereas men are inclined to play hard by engaging in strenuous sports, women are more likely to engage in artistic and cultural activities to relax. Women also are more likely than men to respond to stress by maintaining healthy habits (e.g., eating prop- erly and exercising regularly) and by seeking social support (e.g., talking to their friends about their problems). Although both women and men take steps to cope with stress, woman generally have a harder time of it. Overall, women cope less effectively with the stress they face. They suffer more physical symptoms (e.g., elevated blood pressure), behavioral symptoms (e.g., sleeplessness), and emotional symptoms (e.g., anxiety and depression). Why is this? There are several possibilities. 1. Volume of stressors. One possibility is that women cope less effectively because the overall levels of stress they face
- 617. are so much higher than those faced by men. 2. Coping. Another possibility is that what women are doing to cope with the stressors they face is less effective than what men do to cope with their stressors. 3. Physiological predisposition. Another possibility is that the generally greater physical strength and stamina of men predisposes them to respond less adversely to whatever stressors they encounter. Of course, various combinations of these explanations may be involved, as well as numerous other factors. Regardless of the reason, one thing is sure: When attempting to get employees to be affected less adversely to work stress, managers need to focus especially carefully on women. Going out of the way to include women in stress management programs appears to be a wise investment. CHAPTER 5 • COPING WITH ORGANIZATIONAL LIFE: EMOTIONS AND STRESS 197 employee assistance programs (EAPs) Plans offered by employers that provide their employ- ees with assistance for various personal problems (e.g., substance abuse, career planning, financial and legal problems). member assistance
- 618. programs (MAPs) Plans offered by trade unions that provide their members with assistance for various personal prob- lems (e.g., substance abuse, career planning, financial and legal problems). stress management programs Systematic efforts to train employees in a variety of techniques that they can use to become less adversely affected by stress. wellness programs Company-wide programs in which employees receive training regarding things they can do to promote healthy lifestyles. Reducing Stress: What Can Be Done? Stress stems from so many different factors and conditions that to eliminate it entirely from our lives is impossible. However, there still are many things that both companies and individuals can do to reduce stress and to minimize its harmful effects.62 To ensure that these tactics are followed, many companies have introduced systematic programs designed to help employees reduce and/or prevent stress. The underlying assumption of these programs is that by minimizing employees’ adverse reactions to stress, they will be healthier, less likely to
- 619. be absent, and, consequently, more productive on the job. This, in turn, is not only likely to have beneficial effects on the bottom lines of companies but also on the individual well-being of the employees who work in them. Employee Assistance Programs and Stress Management Programs About two-thirds of today’s companies have some kind of formal program in place to help employees with various problems they may face in their personal lives (e.g., substance abuse, career planning, financial and legal problems).63 Such efforts are known as employee assistance programs (EAPs). Sometimes, such programs are sponsored by trade unions, in which case, they are known as member assistance programs (MAPs). Interest in offering systematic ways of promoting the welfare of employees has grown so great that many companies today are seeking the assistance of specialized organizations with whom they can contract to offer assistance programs for their employees. By outsourcing these services to firms that are expert in this area, companies are free to focus on their usual business while ensuring that they are taking care of their employees as needed. Privacy also is enhanced since using outsourced EAP services also helps ensure that personal information about employees is kept from their employers. Importantly, EAPs are paying off. According to the Employee Assistance Professionals Association, a trade group for companies offering professional EAP services to organizations, employee work loss is avoided in 60 percent of the cases in which EAP services are provided.64
- 620. Another systematic approach to addressing the stress problem comes in the form of stress management programs. These involve training employees in a variety of techniques (e.g., meditation and relaxation) that they can use to become less adversely affected by stress (we will describe several of these techniques on pages 198–200). About a quarter of all large companies have stress management programs in place. Wellness Programs Beyond helping employees reduce stress-related problems, about half of today’s larger compa- nies have wellness programs in place to keep them healthy. These are systematic efforts to train employees in a variety of things they can do to promote healthy lifestyles. Very broad-based, wellness programs usually consist of workshops in which employees can learn many things to reduce stress and maintain their health. Exercise, nutrition, and weight-management counseling are among the most popular areas covered. As an interesting example, Blue Cross Blue Shield of Oklahoma built a financial incentive into the wellness program it uses for its 1,300 employees.65 The company offers “Weight Watchers at Work” meetings. Employees have to pay to participate in the 16-week program—but as an incentive, if they attend at least 14 weekly sessions, they are reimbursed. In a recent five-year period, Blue Cross Blue Shield employees collectively have lost nearly 10 tons of excess weight. As you might imagine, companies that have used such programs
- 621. have found that they pay off handsomely. For example, at its industrial sites that offer wellness programs, DuPont has found that absenteeism is less than half of what it is at sites that do not offer such programs. Organizations such as The Travelers Companies and Union Pacific Railroad have enjoyed consistently high returns on each dollar they invest in employee wellness. And when it comes to saving money by promoting employee health, there is a lot at stake. Consider, for example, that annual health insurance costs in the United States due to obesity alone is $7.7 billion.66 As you might imagine, wellness programs help not only by reducing insurance costs, but also by reducing absenteeism due to illness. There’s yet another way in which stress management efforts promise to help companies’ bottom lines, and one of which most people are unaware. We are referring to the problem of presenteeism—the practice of showing up for work but being too sick to be able to work effectively. Paying workers who are not performing well is not only costly on its presenteeism The practice of showing up for work but being too sick to be able to work effectively. 198 PART 2 • BASIC HUMAN PROCESSES meditation
- 622. The process of learning to clear one’s mind of external thoughts, often by repeat- ing slowly and rhythmically a single syllable (known as a mantra). • Set a bad example for others • Poor performance • Prone to make errors • Spread contagious diseases Motives Go to work when ill Consequences • Loss of income • Pressure from management • No more sick days • Sense of obligation FIGURE 5.14 Presenteeism: Motives and Consequences The opposite of absenteeism, presenteeism also can be
- 623. problematic for organizations. Some of the motives that people might have for going to work when ill are summarized here, along with the consequences. own, but also indirectly, given that it may lower morale by sending the message that it’s important to show up even if you’re sick. And, of course, depending on the particular illness people have, it may spread disease throughout a workplace, compounding the problem (for an overview of some possi- ble motives for presenteeism and its results, see Figure 5.14). This practice is especially problematic in view of estimates that about one in four employees engage in presenteeism.67 Given that stress is one of the leading causes of illness, it follows that reducing stress can help minimize the problem of presenteeism (and many others too, of course). (Although it would seem that wellness programs are beneficial for all, some concerns have been raised about the extent to which they are inherently ethical. For an overview of these considerations, see The Ethics Angle section on page 199.) Managing Your Own Stress Even if the company at which you work does not have a formal program in place to help you manage stress, there still are several things you can do by yourself to help control the stress in your life. We now describe several such tactics. MANAGE YOUR TIME WISELY. People who don’t use their time effectively find themselves easily overwhelmed, falling behind, not getting important things done, and having to work longer hours as a result. Not surprisingly, time management, the practice of taking control over how we
- 624. spend time, is a valuable skill for reducing time pressure, which is a particularly widespread stressor. Some of the most effective time management practices are summarized in Table 5.8. EAT A HEALTHY DIET AND BE PHYSICALLY FIT. Growing evidence indicates that reduced intake of salt and saturated fats, and increased consumption of fiber- and vitamin-rich fruits and vegeta- bles, are steps that can greatly increase the body’s ability to cope with the physiological effects of stress.68 Regular exercise also helps. People who exercise regularly obtain many benefits closely related to resistance of the adverse effects of stress. For example, fitness reduces both the incidence of cardiovascular illness and the death rate from such diseases. Similarly, physical fitness lowers blood pressure, an important factor in many aspects of personal health. With this in mind, it is not surprising that growing numbers of companies are taking steps to ensure that their employees maintain proper weight by eating properly and exercising regularly. Some even offer monetary incentives for doing so.69 RELAX AND MEDITATE. Many people find that it helps to relieve stress by engaging in meditation, the process of learning to clear one’s mind of external thoughts, often by repeating slowly and rhythmically a single syllable (known as a mantra). Those who follow this systematic way of relaxing claim that it helps to relieve the many sources of stress in their lives. For an overview of general steps to follow while meditating, see Table 5.9.70
- 625. GET A GOOD NIGHT’S SLEEP. One of the most effective ways to alleviate stress-related problems is one of the simplest—if you can do it—sleeping. We all need a certain amount of sleep to allow time management The practice of taking control over how we spend time. CHAPTER 5 • COPING WITH ORGANIZATIONAL LIFE: EMOTIONS AND STRESS 199 The Ethics Angle Companies and Employee Health: An Invitation for Big Brother? At first blush, it would seem to be evident that wellness pro- grams cannot help but benefit employees and employers alike. Although this is probably true on most occasions, it has been noted that wellness programs run the risk of being unethical because they enable companies to be too intrusive in their employees’ lives. The seriousness of this risk will depend on the exact practices compa- nies follow, but let’s examine the general issues. Some concerns have been raised that when companies have any connection to their employees’ health and wellness, the potential exists for employers to use this information against their employees. This concern is especially relevant when
- 626. compa- nies have on-site medical clinics. You might not realize it, but in the 1800s, most large compa- nies had doctors on the premises that serviced the health-care needs of employees. By the 1940s, however, most of these medical clinics began closing in the wake of criticism that the doctors were more attuned to the financial needs of the companies that paid them than to the patients they saw.71 Even today, might doctors who are paid by a company think twice about recommending time off for key employees whose services are especially vital? Even more seriously, might a company doctor share private information about the serious illness an employee might have so that he or she could be terminated before the company is forced to pay exorbitant medical bills, raising insurance premiums for everyone? Or, even if a doctor is not so blatant in disregarding a patient’s privacy, might company officials be tempted to snoop around the clinic to see what information of interest they might find? To avoid such problems, most organizations (which are not qualified to run medical clinics in the first place) outsource their on-site facilities to specialized companies that are quali- fied to operate them. One such company is Take Care Health Services (owned by Walgreens), whose employees design, staff, and run many in-house clinics. From an ethical perspec- tive, this is intended to maintain a vital privacy buffer that keeps companies from prying into their employees’ medical
- 627. records. Taking the absence of any reports of breeches in security as evidence, they seem to be quite successful. Still, some especially cautious individuals may be reluctant to have their medical records housed under the same roofs as their companies. Another concern has to do with the difference between “encouraging” employee health and “mandating” it. Consider this example. One company used to have a program in which employees were given opportunities to get complete physicals and then, if they were found to be healthy in key ways (e.g., appropriate weight, normal blood pressure, not smoking, etc.), they were awarded a $500 bonus. Then, one day in an effort to control rising health-care costs, the company moved from a voluntary program to a mandatory program.72 Among other things, this included prohibiting employees from smoking, even off the job. Although not smoking surely is prudent, some employees complained that the practice of outlawing it is unethi- cal because it violates their individual rights. Furthermore, several states have laws that prohibit companies from restricting the things employees can do while not on the job, making the practice illegal in some places as well. What do you think? Are you concerned about the potential for a corporate Big Brother to interfere with private matters, such as personal health, or do you believe that proper safe- guards can be implemented to avoid ethical conflicts of interest? Do you believe that those who harbor such concerns are being appropriately cautious or merely paranoid? TABLE 5.8 Three Key Suggestions for Managing Your Time Managing time well can be an effective means of reducing
- 628. stress because it allows people to avoid last-minute crises and because it permits work to flow in a regular manner. Although these three suggestions may be easier said than done, following them can be very helpful. Tip Explanation Prioritize your activities. Distinguish between tasks that are urgent (ones that must be performed right away) and important (ones that must be done, but can wait). When determining how to spend your time, assign the greatest priority to tasks that are both important and urgent, a lower priority to tasks that are important but less urgent, and the lowest priority of all to tasks that are neither important nor urgent. Allocate your time realistically— do not overcommit. When planning, accurately assess how much time needs to be spent on each of the various tasks you perform. Budgeting too much time can lead to underload, and too little time can lead to overload. It also helps to build in buffers, some extra time to handle unexpected issues that might arise. Take control of your time. Make a “to do” list and carefully keep track of what you have to accomplish. Unless an urgent situation comes up, stay focused and don’t allow others to derail you. The more you allow other people to interfere with your time, the less you will have accomplished at the end of the day.
- 629. our bodies to recharge and function effectively. Eight hours per day is average, although some need more and others can function just fine on fewer. Although a restful night’s sleep can help people ward off the harmful effects of stress, the problem for many is that they are so stressed that they have difficulty getting to sleep or maintaining their sleep, a widespread stress reaction known as insomnia. AVOID INAPPROPRIATE SELF-TALK. This involves repeatedly telling ourselves how horrible and unbearable it will be if we fail, if we are not perfect, or if everyone we meet does not like us. Such thoughts seem ludicrous when spelled out in the pages of a book, but the fact is that most people entertain them at least occasionally. Unfortunately, such thoughts can add to personal levels of stress, as individuals awfulize or catastrophize in their own minds the horrors of not being successful, perfect, or loved. Fortunately, such thinking can be readily modified. For many people, merely recognizing that they have implicitly accepted such irrational and self-defeating beliefs is sufficient to produce beneficial change and increased resistance to stress. TAKE A TIME-OUT. When confronted with rising tension, people may find it useful to choose to insert a brief period of delay known as a time-out. This can involve taking a short break, going to the nearest restroom to splash cold water on one’s face, or any other action that yields a few
- 630. moments of breathing space. Such actions interrupt the cycle of ever-rising tension that accom- panies stress and can help to restore equilibrium and the feeling of being at least partly in control of ongoing events. 200 PART 2 • BASIC HUMAN PROCESSES TABLE 5.9 How to Meditate by Relaxing Meditation can help people gain better control of negative emotions, such as anger, and it also can help lessen negative reactions to stress. For these reasons, learning to meditate can be very useful. Although there are several different types of meditation, the relaxation approach outlined here is both easiest to learn and among the most effective. Give it a try. 1. Go to a quiet, dark place where you will not be disturbed. Sit in a comfortable position. Let your mind go blank and slowly relax your muscles. 2. Focus into space, slowly letting everything out of your mind. Do not let thoughts intrude. If they do, work at pushing them away. 3. Breathe slowly and in a regular rhythm. As you breathe in, slowly make the sound “haaah” as you would when slipping into a hot bath. Then, as you exhale, slowly produce the sound “saaah,” sounding and feeling like a sigh. 4. Repeat this process, breathing slowly and naturally. When you do, inhale through your nose and pause for a few seconds.
- 631. Then exhale through your mouth, again pausing for a few seconds. 5. Should thoughts enter your mind while attempting this process, don’t feel badly about it. Instead, realize that this is natural and pick up the process once again. This will take time to master, so be patient. With practice, you will be able to do this more quickly. 6. Continue this process for what feels like about 20 minutes. Don’t look at the clock, though. As the time draws to a close, maintain awareness of your breathing and sit quietly. Then, slowly becoming aware of where you are, open your eyes and get up gradually. Sources: Based on various sources in Note 70. time-out A brief delay in activities designed to reduce mounting tension. Summary and Review of Learning Objectives 1. Distinguish between emotions and moods. Whereas emotions are overt reactions that express people’s feelings about a specific event, moods are more general. Specifically, moods are unfocused, relatively mild feelings that exist as background to our daily experiences. 2. Explain how emotions and mood influence behavior in organizations. Emotions and mood affect behavior in organizations in various
- 632. ways. Generally, happier people are more successful on their jobs; they perform at higher levels, and they make higher incomes. One reason for this is that people who are very upset tend to neither listen to nor understand the performance feedback they receive. Furthermore, happier people tend to make better decisions, remember positive events, give positive evaluations when appro- priate, and cooperate with others. 3. Describe ways in which people manage their emotions in organizations. One way people manage their emotions is by keeping their negative feelings to themselves. Rather than offending another with our actual negative feelings, we may engage in the emotional labor of disguising our true feelings. The inconsistency between the emotions we express and the emotions we feel is known as emotional dissonance. People in organizations also manage their emotions by managing their anger and by displaying compassion for others when needed. This is especially important during major crises and emergencies. 4. Identify the major causes of organizational stress. Stress is caused by many different factors, including occupational demands, conflicts between the work and nonwork aspects of one’s life (i.e., role conflict), not knowing what one is expected to do on the job (i.e., role ambiguity), overload and underload, having responsibility for other people, and experiencing sexual
- 633. harassment. 5. Describe the adverse effects of organizational stress. Experiencing high levels of organizational stress has negative effects on task performance. It also adversely affects people’s physical and mental health in a variety of ways. Stress also is a major cause of such serious problems as desk rage and burnout. 6. Identify various ways of reducing stress in the workplace. To help reduce employees’ stress, companies are doing such things as using employee assistance programs, wellness programs, absence control programs, and stress management programs. As individuals, we can control the stress we face in our lives by following good time management techniques, eating a healthy diet and being physically fit, relaxing and meditating, avoiding inappropriate self-talk, and taking control over our reactions. CHAPTER 5 • COPING WITH ORGANIZATIONAL LIFE: EMOTIONS AND STRESS 201 Points to Ponder Questions for Review 1. What are emotions and moods, and how do they influence people’s behavior in organizations? 2. What does affective events theory say about the effects of people’s emotions on their behavior in organizations? 3. What advice would you give to leaders of a company
- 634. who are interested in managing their employees’ emotions? 4. What are the differences among stressors, stress, and strain? 5. What are the primary causes and consequences of stress on the job? 6. What steps can be taken to minimize the potentially harmful effects of stress on the job? Experiential Questions 1. Think of a time when it was necessary for you to express compassion on the job in response to a trau- matic situation. What were the circumstances? What did you do that was effective? What steps might you take to become even more effective the next time it is necessary to express compassion on the job? 2. What was the most stressful situation you ever encountered on the job? What were the stressors, and how did you react, both physically and psycholog- ically? What role did social support play in helping you manage this stress? 3. What experiences have you had using stress manage- ment techniques—either formally or informally? For example, do you meditate? Do you find that physical exercise helps you relieve stress? Does talking to others help at all? Of the various techniques described in this chapter, which one do you think you would find most beneficial?
- 635. Questions to Analyze 1. We all experience emotions, but some people disguise their true feelings better than others. Do you think this is a helpful or harmful thing to do? Under what condi- tions do you think it would be most useful to express your true feelings? Likewise, when do you think it would be best to keep your feelings to yourself? 2. Social support can be a very helpful means of reducing stress. However, do you think it’s wise to seek social support on the job, where you stand to make yourself vulnerable by talking about your work-related stressors (e.g., by showing your weaknesses or by speaking negatively about your bosses)? Or do you think that only your coworkers are in a good position to under- stand your work-related stressors, suggesting that you should talk to them about the work-related stress you are experiencing? 3. Stress management programs generally work well, but they are not always as effective as hoped. What problems and limitations do you believe may inter- fere with the effectiveness of stress management programs? How can these problems and limitations be overcome? 202 PART 2 • BASIC HUMAN PROCESSES Experiencing OB Individual Exercise How Resilient Are You? This questionnaire is designed to help you discover how
- 636. resilient you are. People who are more resilient are less inclined to suffer problems associated with stress because they simply “bounce back” from them without experiencing harm. Directions Using the following scale, respond to each of the items by indicating how often you do what is indicated. 1 � never 2 � sometimes 3 � half the time 4 � usually 5 � always 1. I am able to “forgive and forget” whenever someone has hurt me. 2. Overall, I am more of an optimist than a pessimist. 3. I take some time out each day for quiet rest. 4. I am satisfied with the amount of time I spend having fun. 5. I find it easy to keep everything in my life organized and under control. 6. If I’m upset about something, I am able to speak about it openly. 7. I can confide in friends whenever something troubles me. 8. I usually get enough sleep to feel fully rested. 9. I make it a point to exercise regularly. 10. I eat a well-balanced diet most of the time. Scoring and Interpretation
- 637. 1. Add your points for all 10 items. These can range from 10 to 50. 2. Higher scores reflect a higher degree of resiliency. Questions for Discussion 1. How does the score you earned compare to what you would have imagined before you took this test? Was it higher or lower? Are you surprised? 2. What do these items reveal about the factors that contribute to resiliency? Did you notice that this is essentially a checklist of things to do to reduce or avoid stress? 3. What did completing this questionnaire show you about what you might be able to do to become more resilient and, therefore, harmed less by stressors? Group Exercise Is Your Team Tough Enough to Endure Stress? A test known as the Test of Attentional and Interpersonal Style (TAIS) (see Note 42) has been used in recent years to identify the extent to which a person can stay focused and keep his or her emotions under control—the core elements of performing well under high-pressure conditions. Completing this exercise (which is based on questions similar to those actually used by such groups as Olympic athletes and U.S. Navy Seals) will help you understand your own strengths and limitations in this regard. And, by discussing these scores with your teammates, you will come away with a good feel for the extent to which those with whom you work differ along this dimension as well.
- 638. Directions 1. Form groups of three or four people whom you know fairly well. If you are part of an intact group, such as a work team or a team of students working on a class project, meet with your fellow group members. CHAPTER 5 • COPING WITH ORGANIZATIONAL LIFE: EMOTIONS AND STRESS 203 2. Individually, complete the following questionnaire by responding to each question as follows: “never,” “rarely,” “sometimes,” “frequently,” or “always.” 1. When time is running out on an important project, I am the person who should be called on to take control of things. 2. When listening to a piece of music, I can pick out a specific voice or instrument. 3. The people who know me think of me as being “serious.” 4. It is important to me to get a job completely right in every detail, even if it means being late. 5. When approaching a busy intersection, I easily get confused. 6. Just by looking at someone, I can figure out what he or she is like. 7. I am comfortable arguing with people. 8. At a cocktail party, I have no difficulty keeping track of several different con-
- 639. versations at once. 3. Discuss your answers with everyone else in your group. Item by item, consider what each person’s response to each question indicates about his or her ability to focus. Questions for Discussion 1. What questions were easiest to interpret? Which were most difficult? 2. How did each individual’s responses compare with the way you would assess his or her ability to focus under stress? 3. For what jobs is the ability to concentrate under stress particularly important? For what jobs is it not especially important? How important is this ability for the work you do? Practicing OB Stressed-Out Employees Are Resigning As the managing director of a large e-tail sales company, you are becoming alarmed about the growing levels of turnover your company has been experiencing lately. It already has passed the industry average, and you are growing concerned about the company’s capacity to staff the call center and the warehouse during the busy holiday period. In conducting exit interviews, you learned that the employees who are leaving generally like their work and the pay they are receiving. However, they are displeased with the way their managers are treating them, and this is creating stress in their lives. They are quitting so they can take less stressful positions in other companies. Answer
- 640. the following questions based on the material in this chapter. 1. Assuming that the employees’ emotions and moods are negative, what problems would you expect to find in the way they are working? 2. How should the company’s supervisors behave differently so as to get their subordinates to experi- ence less stress on the job (or, at least, get them to react less negatively)? 3. What could the individual employees do to help manage their own stress more effectively? C ase in Poin t “I ’ve brought shame on myself, my family and the pro- fession” were the words of Tim Donaghy, as a federal district judge sentenced him to 15 months behind bars in July 2008. Formally, the charges against him were conspiracy to engage in wire fraud and transmitting betting information through interstate commerce. In plain English, the 41-year-old Donaghy, a 13-year vet- eran National Basketball Association (NBA) referee, admitted to taking thousands of dollars in payoffs from (Continued ) ■ A Basketball Court Judge Faces a Federal Court Judge a professional gambler in exchange for giving inside tips
- 641. on games he officiated. Upon sentencing Donaghy, U.S. District Judge Carol Amon gave him credit for cooperating with the court but explained that a jail term was justified since, “The NBA, the players and the fans relied upon him to perform his job in an honest, reliable and non-conflicted manner.” Instead, she said, he was “compromised by a financial interest in the game he was refereeing.” The contrite Donaghy stood with his arms folded and showed no emotion. When Pa rt 2 V id eo C as es to help employees improve their skills and advance their careers. Although an annual review can provide employees with some feedback, Martin Buckingham of Hot Jobs says that he prefers ongoing feedback. Herman claims that at her orga- nization, the management development program focuses on the career plans of employees and the steps managers should take to move toward achieving their goals. Discussion Questions
- 642. 1. Which of the different types of training presented in Chapter 3 would be most effective for companies like Lowes Hotels? 2. Why are the keys to effective training presented in Chapter 3 so important to companies like those shown in the video? 3. Explain how 360-degree feedback can be used improve the effectiveness of training in situations like the one at Lowes Hotels. (Continued ) 204 PART 2 • BASIC HUMAN PROCESSES invited to speak, he told the judge, “I’m very sorry for the acts for which I stand before you.” Although sportswriters and NBA officials roundly criti- cized Donaghy for his actions, they also acknowledge the intensely stressful nature of the referee’s job. Living out of a suitcase for over half a year, they log thousands of miles on the road during the season and face extreme pressure. Not only do they have to make split-second decisions, but they also have to do it in the shadow of giant players and coaches who are not exactly reticent about sharing their opinions about the nature of their calls. Although Donaghy can serve his sentence and put the ordeal behind him, some believe that the problems for the NBA may be just beginning. In the course of defending himself, Donaghy revealed that NBA officials told referees to go easy on calling technical fouls against certain star players, who fans wanted to see on the court,
- 643. and to make calls that extended playoffs to seven games so as to boost income for the league. NBA Commissioner David Stern has repeatedly denied that corruption went beyond Donaghy, explaining that Donaghy fabricated the claims to create the appearance that he was sharing information in the hope of getting a lighter sentence. Although the court announced that Donaghy’s claims of widespread game manipulation were unsubstantiated, the NBA recognizes the serious public relations nightmare it has on its hands. Unless the game can be played with integrity on a level playing field (or, court, in this case), it has no future. To ensure the quality of officiating from now on, Commissioner Stern created a new position, senior vice president of referee operations, staffed by retired U.S. Army General Ronald Johnson. If you think being a referee on the court is stressful, imagine what it’s like to be in charge of all of them from behind a desk in a New York office. Questions for Discussion 1. What particular emotions do you believe Donaghy experienced as this situation unfolded? 2. What sources of stress did Donaghy encounter, and how did he respond to them? 3. Considering the stressful nature of his ordeal, what would you recommend to Donaghy that he do to alleviate some of the stress he encountered? ■ Training and Development Employee training is a major responsibility for most
- 644. human resource departments. These programs provide employees with the tools they need to accomplish their job duties successfully. Developing a good plan begins with clearly identifying what needs to be achieved and then determining which kind of training is most appropriate. Once the answers to these questions have been identified, firms can ascertain who should conduct the training and how its effectiveness will be measured. According to Jenny Herman of Lowes Hotels, for a training program to be effective, it should incorporate input from people in the field and be used on a pilot basis to work out any kinks before being rolled out to the entire firm. Various tools, including one-on-one relationships, mentoring programs, interactive training, and computer training, can be used. Training is not a one-time event, but an ongoing process. Companies also should implement management development programs ■ Managing Stress Stress in the workplace is all-too-commonplace. Some individuals, like Student Advantage’s Vinnie Russo, feel pressured because they cannot say “no,” even when they are already overscheduled. Other employees, like Heidi Vanvliet, feel stressed when they are faced with impossible deadlines. People experience this pressure in different ways. Things that might cause strain in one person may be of little importance to another. An individual’s experience also plays a role: An employee who has already put in an 18-hour day, for example, may feel bothered when facing a situation that on any other day would cause little problem.
- 645. CHAPTER 5 • COPING WITH ORGANIZATIONAL LIFE: EMOTIONS AND STRESS 205 Because high levels of stress can have a negative impact on performance, some companies have imple- mented programs designed to help workers deal with it. At Student Advantage, Kevin Roach shows employees how to integrate personal and professional goals. Roach points out that planning and prioritizing are important to managing stress, and that individuals need to be able to identify what adds value and what can be ignored. Stressors can vary over time as circumstances change. When Student Advantage initially was founded, for exam- ple, most employees were relatively young and single. Today, however, many have families, and this change has introduced new stressors as managers strive to find a good balance between their family lives and professional lives. Similarly, as the company has grown and added more lay- ers of management, more policies, and new procedures, additional stressors have been introduced for long-time employees who now must adapt to the more structured environment. As part of its effort to assist workers, Student Advantage takes special care to hire individuals who not only have the right technical skills, but who also will fit well with the corporate culture. Discussion Questions 1. How can time-management tactics such as those in Table 5.8 (on page 199) help employees at Student Advantage lower their stress levels? 2. In the video clip, Amy Geeler claims she feels stressed when doing payroll. What are the major
- 646. causes of organizational stress (as described in Chapter 5) and which of these does Amy appear to be experiencing? 3. In what ways does Student Advantage benefit from offering employee assistance programs? Chapter Outline � Attitudes: What Are They? � Prejudice and Discrimination: Negative Attitudes and Behavior Toward Others � Strategies for Overcoming Workplace Prejudice: Managing a Diverse Workforce � Job Satisfaction: Its Nature and Major Theories � Consequences of Job Dissatisfaction—and Ways to Reduce Them � Organizational Commitment: Attitudes Toward Companies Learning Objectives After reading this chapter, you should be able to: 1. Define attitudes and work-related attitudes, and describe the basic components of attitudes. 2. Distinguish between prejudice and discrimination, and identify various victims of prejudice
- 647. in organizations. 3. Describe some of the things being done by today’s organizations to manage diversity in their workforces and the effectiveness of these practices. 4. Explain the concept of job satisfaction, and summarize three major theories of job satisfaction. 5. Describe the consequences of job dissatisfaction and ways to promote job satisfaction. 6. Describe the concept of organizational commitment, its major forms, the consequences of low levels of organizational commitment, and how to overcome them. P A R T The Individual in the Organization 6CHAPTE R 3 Work-Related Attitudes: Prejudice, Job Satisfaction, and Organizational Commitment 206 CHAPTER 6 • WORK-RELATED ATTITUDES: PREJUDICE, JOB SATISFACTION, AND ORGANIZATIONAL
- 648. COMMITMENT 207 Preview Case ■ A Second Chance The Yellow Ribbon Project was launched by PresidentS. R. Nathan of the Republic of Singapore in 2004. It seeks to engage the community in accepting ex-offenders and their families, giving them a second chance at life and a chance to inspire a ripple effect of concerted community action to support ex-offenders and their families. In recent years, many ex-offenders who have successfully reinte- grated into society, and their family members and employers who decided to give them a second chance, have received a lot of media coverage. From this cover- age, it is easy for us to conclude that the reintegration of ex-offenders is perhaps a non-issue. However, the reality for some can be a lot harsher. Annually, about 10,000 ex-offenders are released from various prisons and drug rehabilitation centers in Singapore. For them, reintegration into society is often an arduous journey fraught with rejections, even though they have already done their time behind bars to pay for their crimes. Upon their release, many find themselves entering into a second “prison”—a prison imposed by society—one of mistrust and discrimination. The difficul- ties sometimes result in their giving up and reverting to their former life of crime in order to make ends meet. Robert Lee (not his real name) was sentenced to prison for four years for money-lending activities. His involvement with loan sharking began when he agreed to guarantee his best friend’s loan. When his friend absconded, Robert was left to shoulder the entire amount.
- 649. When he was unable to repay the debt, the loan sharks made him a deal to write off the sum if he helped them collect debts from other debtors. Upon his release from prison, Robert resolved to start a new life, but it was not easy. All of the job interviews he went to were cut short when the potential employer found out about his criminal record. He was close to losing hope when he managed to find a job through the Singapore Corporation of Rehabilitative Enterprises (SCORE), enabling him to eke out an honest living and support his family. The Yellow Ribbon Project tries to convey to the people of Singapore that, although nobody owes the ex-offenders a chance, they need the chance to change. By helping an ex-offender start anew, the community contributes to making Singapore a safer place to live, reducing the chances of recidivism. The success of the project can be seen through the change in employers’ feelings toward ex-offenders and the increasing number who are willing to hire ex-offenders over the years. These feelings about people and things are known as attitudes. As you might imagine, attitudes are an important part of people’s lives, particularly in the workplace. Indeed, people tend to have definite feelings about everything related to their jobs, whether it’s the work itself, superiors, coworkers, subordinates, or even such mundane things as the food in the company cafeteria. Feelings such as these are referred to as work-related attitudes, the topic of this chapter. As you might imagine, not only may our attitudes toward our jobs or organizations have profound effects on the way we
- 650. perform, but also on the quality of life we experience while at work. In view of their importance, we will examine these effects closely in this chapter. Specifically, our discussion of work-related attitudes has three major areas of focus. First, we will consider attitudes toward others, including that special— and problematic—kind of negative attitude known as prejudice. Second, we will look at attitudes toward the job, known as job satisfaction. Third, we will conclude this chapter by focusing on people’s attitudes toward the organizations in which they work, known as organizational commitment. Before getting to these specific work-related attitudes and to help you appreciate them fully, however, we begin by outlining the nature of attitudes in general. Attitudes: What Are They? If we asked you how you feel about your job, we’d probably find you to be very opinionated. You might say, for example, that you really like it and think it’s very interesting. Or perhaps you may complain about it bitterly, noting that it makes you bored out of your mind. Maybe you’d hold views that are more complex, liking some things (e.g., “my boss is great”) and disliking others 208 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION (e.g., “the pay is terrible”). These feelings reflect the attitudes we hold. With this in mind, we now take a closer look at the nature of attitudes.
- 651. Basic Definitions Formally, we define attitudes as relatively stable clusters of feelings, beliefs, and behavioral predispositions (i.e., intentions) toward some specific object, person, or institution. By including the phrase relatively stable in the definition, we are referring to feelings that are not fleeting and that, once formed, tends to persist. Indeed, as we will explain throughout this chapter (and again in Chapter 16), changing attitudes may require considerable effort. When we speak of work-related attitudes, we are talking about those lasting feelings, beliefs, and behavioral tendencies toward various aspects of the job itself, the setting in which the work is conducted, the people involved and/or the organization as a whole. As you will discover as you read this chapter, work-related attitudes are associated with many important aspects of organizational behavior, including job performance, absence from work, and voluntary turnover. Three Essential Components of Attitudes Regardless of exactly what they may be, the attitudes you express consist of three major components: an evaluative component, a cognitive component, and a behavioral component.1 Because these represent the basic building blocks of our definition of attitudes, we now exam- ine them more closely (for an overview and example, see Figure 6.1). So far, we’ve been suggesting that attitudes have a great deal to
- 652. do with how we feel about something. Indeed, this essential aspect of an attitude, its evaluative component, refers to our liking or disliking of any particular person, item, or event (what might be called the attitude object, the focus of our attitude). You may, for example, feel positively or nega- tively toward your boss, the sculpture in the lobby, or the fact that your company just landed a large contract. Attitudes involve more than feelings; they also involve knowledge—that is, what you believe to be the case about an attitude object. For example, you might believe that one of your coworkers is paid much more than you, that the company is going to merge with another, or that your supervisor doesn’t know as much as she should about her job. These beliefs, whether they’re accurate or even totally false, comprise the cognitive component of attitudes. attitudes Relatively stable clusters of feelings, beliefs, and behavioral intentions toward a specific object, person, or institution. work-related attitudes Attitudes relating to any aspect of work or work settings. evaluative component (of attitudes)
- 653. Our liking or disliking of any particular person, item, or event. cognitive component (of attitudes) The things we believe about an attitude object, whether they are true or false. FIGURE 6.1 Three Basic Components of Attitudes People’s attitudes toward specific objects (the focus of attitudes) are composed of the three fundamental components shown here: the evaluative component, the cognitive component, and the behavioral component. This example illustrates how someone might have a negative attitude toward his or her boss. CHAPTER 6 • WORK-RELATED ATTITUDES: PREJUDICE, JOB SATISFACTION, AND ORGANIZATIONAL COMMITMENT 209 As you might imagine, the things you believe about something
- 654. (e.g., “my boss is embezzling company funds”) and the way you feel about it (e.g., “I can’t stand working for him”) may have effects on the way you are predisposed to behave (e.g., “I’m going to look for a new job”). In other words, attitudes also have a behavioral component—a predisposition to act in a certain way. It is important to note that such a predisposition may not be perfectly predictive of one’s behavior. For example, although you may be interested in finding a new job, you might not actually bother to look for one if you suspect that a better position isn’t available, or if there are other aspects of the job you like enough to compensate for your negative feelings. In other words, your intention to behave a certain way may or may not dictate how you actually will behave. It’s important to keep this in mind as you come to understand the various attitudes described in this chapter. Now that we have examined the basic nature of attitudes, we turn our attention to specific work-related attitudes. We begin by describing a crucial work- related attitude—prejudice, negative attitudes toward other people. Prejudice and Discrimination: Negative Attitudes and Behavior Toward Others How do you feel about your associate in the next cubicle? How about your boss, or accountants in general? Our attitudes toward other people are obviously very important when it comes to understanding behavior in organizations. Such attitudes are highly problematic—when they are negative—especially when these feelings are based on misguided beliefs that prompt harmful
- 655. behavior. Prejudice is the term used to refer to attitudes of this type. Specifically, prejudice is defined as negative feelings about people belonging to certain groups. Members of racial or ethnic groups, for example, are victims of prejudice when they are believed to be disinterested in working, unprincipled, or inferior in one way or another. Prejudicial attitudes, as you know, often hold people back, creating barriers to their success. Because of its considerable importance in organizations, we closely examine the nature of prejudice in this section of the chapter. The Challenges of Organizational Demography At the root of prejudicial feelings is the basic fact that people tend to be uncomfortable with others who are different from them. Today, as we chronicled in Chapter 1, demographic differences between people in the workplace are not the exception, but the rule. For example, not so long ago the American workforce was composed predominantly of white males. But that is no longer the case. In fact, white men now represent less than half of the current American work- force, and most new entrants to the workforce are expected to be women and people of color.2 This is the result of three major trends.3 � Birth rates of nonwhites is higher than those of whites. � Growing numbers of foreign nationals are entering the American workforce, making it more racially and ethnically diverse than ever.
- 656. � We now have equal proportions of men and women in the workforce overall (although these figures vary considerably for different jobs). The study of the composition of a workforce with respect to various characteristics (e.g., age, gender, ethnic makeup, etc.) is known as organizational demography.4 As demographic characteristics change, challenges often result. Among white men, for example, there’s the grow- ing recognition that their era of dominance in the workplace is over, which many find threaten- ing.5 Not only white men, but everyone in the workplace must become aware that stereotypes and prejudicial attitudes (which we will examine in the next sections of this chapter) impose potential barriers to success that must be eliminated. This is made difficult by the tendency for employees to feel uncomfortable working with others from whom they differ in key ways. When this occurs, disruptive interpersonal conflict sometimes results (see Chapter 11), potentially interfering with performance within work groups and teams. Another likely reaction is that employees will distance themselves from those considered “different,” triggering potentially serious disruptions to effective organizational communication behavioral component (of attitudes) Our predisposition to behave in a way consistent with our beliefs and feelings about an attitude object.
- 657. prejudice Negative attitudes toward the members of specific groups, based solely on the fact that they are members of those groups (e.g., based on age, race, ethnicity, sexual orientation). organizational demography The nature of the composition of a workforce with respect to various characteristics (e.g., age, gender, ethnic makeup, etc.). 210 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION (see Chapter 9). In some cases, as shown in research on top management teams, people even resign when they feel sufficiently uncomfortable as members of demographically diverse teams.6 As some researchers have concluded, “the greater the dissimilarity (between group members), the more negative outcomes, such as conflicts, divisiveness, or turnover are likely to occur.”7 When viewed in light of the fact that demographic diversity is the rule rather than the excep- tion in contemporary organizations, it’s imperative for everyone in the workplace to accept
- 658. everybody else. Doing so helps avoid the costly problems of disharmony and communication failure just noted. But that’s just the beginning. By going a step further—not just accepting people in the workplace, but valuing them and embracing their differences—organizations stand to benefit greatly. Specifically, as we will describe later in this section of the chapter, important benefits are likely to result when working with people who bring different perspectives to the jobs they perform.8 This is not surprising, given that people with diverse backgrounds have different experiences, and as a result, they can be expected to look at the world differently. Through these different lenses ideas may emerge that might never have materialized in more homogeneous groups. And in today’s highly competitive business environment, no organizations can afford to overlook leveraging these vital human resources. With this background in mind, we examine closely the nature of prejudicial attitudes in this section of the chapter. To provide a feel for how serious prejudices can be, we describe specific targets of prejudice in the workplace and the special nature of the problems these individuals confront. Following this, we then discuss various strategies that have been used to overcome prejudice in the workplace. Before turning to these topics, we begin by taking a closer look at the concept of prejudice and distinguish it from related concepts. This is critical because if we are to have any chance of reducing prejudice in the workplace, we must fully appreciate its basic nature. Anatomy of Prejudice: Some Fundamental Distinctions
- 659. When people are prejudiced, they judge members of a group based on the qualities they attribute to that group. So, to the extent we believe that members of a certain group have various characteris- tics, learning that someone belongs to that group will lead us to believe that he or she also possesses those qualities. Stereotype is the term used to identify such beliefs. STEREOTYPES. Formally, a stereotype is a belief about someone based on the group to which that person belongs. As you probably realize, stereotypes, whether positive or negative, are generally inaccurate. If we knew more about someone than simply whatever we assume based on his or her membership in various groups, we are likely to make far more accurate judgments about that individual. However, to the extent that we often find it difficult or inconvenient to learn everything we need to know about someone, we frequently rely on stereotypes as mental shortcuts. So, for example, if you believe that individuals belonging to group X are not particu- larly bright, and you meet person A, who happens to belong to group X, you likely would assume that he or she is inclined to be unintelligent. Although this may seem logical enough, by engaging in such stereotyping you run the risk of misjudging person A. After all, you don’t know this individual (although you made an assump- tion based on his or her group membership). The person in question actually might be quite brilliant, despite presuming just the opposite. However, by drawing on the stereotype, you presupposed that person A wasn’t too smart. Would you be
- 660. willing to hire such an individual for a key post in your company? Probably not. Your predisposition against hiring A (a behavioral predisposition) in this situation reflects your prejudicial attitude. It also illustrates a potential cost of engaging in stereotyping. DISCRIMINATION. Prejudicial attitudes are particularly harmful when they translate into actual behaviors. In such instances, people become the victims of others’ prejudices—that is, discrimination occurs. In other words, as summarized in Figure 6.2, prejudice is an attitude, whereas discrimination is a form of behavior following from that attitude. Completing our example, you would refrain from hiring person A, thereby behaving consis- tently with your attitude. This would be neither in your best interest nor that of the victim of your prejudicial attitudes and discriminatory behavior. For this reason, it is important to identify ways of overcoming the natural tendency to base our attitudes on stereotypes and to discriminate unfairly among people on this basis. Later in this chapter, we will outline some strategies that are stereotypes Beliefs that individuals possess certain characteris- tics because of their membership in certain groups. discrimination The behavior consistent
- 661. with a prejudicial attitude; the act of treating someone negatively because of his or her membership in a specific group. CHAPTER 6 • WORK-RELATED ATTITUDES: PREJUDICE, JOB SATISFACTION, AND ORGANIZATIONAL COMMITMENT 211 effective in this regard. Before doing so, however, it’s important to highlight the adverse effects of prejudice in organizations today. Everyone Can Be a Victim of Prejudice and Discrimination! Unfortunate as it may be, this section’s heading is painfully accurate: All of us are indeed poten- tial victims of prejudice and discrimination. No matter what personal characteristics we may have, there very well may be people out there who harbor prejudice against us and who discriminate against us as a result (see Figure 6.3). This is not surprising if you consider that people hold stereotypes about many different things. Whatever you look like, wherever you’re from, whatever REJ ECT ED Prejudicial Attitude Belief
- 662. Evaluative judgment Behavioral predisposition Negative stereotype (Group X is lazy) Negative feelings (Dislike lazy people) Negative inclination (Disinterested in hiring members of Group X) Behavior Discrimination Do not hire members of Group X FIGURE 6.2
- 663. Prejudice Versus Discrimination: A Key Distinction Prejudice is an attitude, and as such, it consists of the three basic components shown here. Discrimination refers to behavior based on that attitude. The example presented here illustrates this important distinction. FIGURE 6.3 If Bob Can Be a Target of Discrimination, So Can You As unlikely as we may be to come across this store, its existence (here, at least) illustrates a sobering fact: People discriminate against others based on just about anything, making everyone potential victims. It might be useful to keep this in mind before discriminating against someone on the basis of your own prejudices.
- 664. w w w .c ar to on st oc k. co m /M ik e B al dw in . 212 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION your interests, chances are good that at least some people will approach you with predisposed
- 665. beliefs about what you’re like. For many groups of people, these beliefs have negative connota- tions, leading to potentially costly forms of discriminatory behavior. Here, we describe some of the most prevalent targets of discrimination in American society today. PREJUDICE BASED ON AGE. Because people are living longer and the birth rate is holding steady, the median age of Americans is rising all the time. Despite this trend—often referred to as the “graying of America”—prejudice against older people is all too common. Although U.S. laws (e.g., the Age Discrimination in Employment Act) have done much to counter employment discrimination against older workers, prejudices continue to exist.9 Part of the problem resides in stereotypes that older workers are too set in their ways to train and that they will tend to be sick or accident-prone. As in the case of many attitudes, these prejudices are not founded on accurate information. In fact, survey findings paint just the opposite picture: A Yankelovich poll of 400 companies found that older workers are considered very good or excellent, especially in such critical areas as punctuality, commitment to quality, and practical knowledge. It is not just older workers who find themselves victims of prejudice but younger ones as well. For them, part of the problem is that as the average age of the workforce advances (from an aver- age of 29 in 1976 to 39 today), there develops a gap in expectations between the more experienced older workers who are in charge and the younger employees just entering the workforce.10
- 666. Specifically, compared to older workers, who grew up in a different time, today’s under-thirty employees view the world differently. They are more prone to question the way things are done, to not see the government as an ally, and to not expect loyalty. They are likely to consider self- development to be their main interest and are willing to learn whatever skills are necessary to make them marketable. (In describing these characteristics, we do not mean to draw on stereo- types. Instead, we are attempting to depict reliable intergenerational differences that follow from shifting societal norms.11) These differing perspectives may lead older employees, who are likely to be their superiors, to feel uncomfortable with their younger colleagues and vice versa. With this in mind, it’s important to ask: What can be done to help bridge the generational communication gap at work? For some recommendations, see Table 6.1.12 TABLE 6.1 How to Bridge Generational Communication Gaps at Work As people continue to work later into their lives, it’s not unusual to find younger and older people working alongside one another. Because people are affected by the experiences they’ve had over the years, and these vary from one generation to the next, it follows that people of widely different ages will differ in values, expectations, and the way they think about things. Such factors conspire to make communication difficult. But to work effectively with one another, we all have to invest in learning to overcome the challenges. The following suggestions
- 667. are designed to help bridge these communication gaps. Recommendation Description and Example Have a discussion about the important events that influenced one another’s lives. When you come to appreciate the major factors that shaped another’s thinking, you can better understand the perspectives they bring to things. A Vietnam veteran who was a prisoner of war may be greatly affected by this experience, even today. Suspend your assumptions about people of different ages. As we noted earlier, stereotypes can be misleading. Communication improves when you refrain from assuming things and make an effort to find out what the other person is like. Who knows, if you do this you might find an 80-year-old computer geek who likes rap music. Don’t treat others the way you want to be treated, but the way they want to be treated. It’s very easy to assume that you’re treating someone politely, but it may be a good idea to discuss this with the other person to make sure. For example, although a younger person may think it’s best to call an older person by his or her first name, that individual may be more comfortable if you used his or her
- 668. last name. Instead of ignoring age differences, discuss them openly. There’s a lot you can learn by talking to people of different ages and really taking in what they’re saying. Doing this may help you learn more about the other person, helping you communicate more effectively with him or her. Such conversations may lead you to learn that you share some common interests, such as being fans of the same sports team. Source: Based on suggestions by Lieberman et al., 2009; see Note 12. CHAPTER 6 • WORK-RELATED ATTITUDES: PREJUDICE, JOB SATISFACTION, AND ORGANIZATIONAL COMMITMENT 213 PREJUDICE BASED ON PHYSICAL CONDITION. There are currently some 41 million Americans with disabilities, 13.6 million of whom are of working age, between 16 and 64. However, only a minority of these individuals hold jobs—and, among these, most work only part-time or irregularly.13 Clearly, there exist barriers that are keeping millions of potentially productive people from gainful employment. The most formidable barriers are not physical but attitudinal. Most people who are not physically challenged don’t know how
- 669. to treat and what to expect from those who are. Experts advise that people with disabilities don’t want to be pitied; they want to be respected for the skills and commitment to work they bring to their jobs. That is, they wish to be recognized as whole people who just happen to have disabling conditions. In other words, you should think of individuals with dis- abilities not as “handicapped people” but as people who just happen to have handicaps. Grammatically these terms may be identical, but their implications are worlds apart. Legal remedies have been enacted to help break down these barriers. For example, in the early 1990s, legislation known as the Americans with Disabilities Act (ADA) was enacted in the United States to protect the rights of people with physical and mental disabilities. Its rationale is straightforward: Simply because an employee is limited in some way does not mean that accommodations cannot be made to help that individual perform his or her job.14 Companies that do not comply are subject to legal damages, and some violators have paid dearly. However, the most important reason to refrain from discriminating against people with disabilities is not simply to avoid fines, but to tap into a pool of talented people who are capable of making valu- able contributions if given an opportunity. PREJUDICE AGAINST WOMEN. The number of women in the U.S. workforce has risen steadily in the past few decades and now equals the number of men. Despite this equality in numbers of workers, women as a whole occupy lower-level
- 670. positions and, as a result, earn only 77.5 cents for every dollar earned by men.15 In fact, the U.S. Bureau of Labor Statistics reports that women comprise only one-third of all the people considered managerial and professional employees.16 Although women have been rising to higher-level positions in recent years, such changes at the top have come about very slowly. For example, in 2008 only 24 women were CEOs of Fortune 1000 companies and only 4 more were added to this number in 2009.17 Thus, despite finding some women in high- profile positions (for an exam- ple, see Figure 6.4), their presence at the top of the corporate world remains the exception rather than the rule. Why is this the case? One explanation that has been advanced is that because women are relative newcomers to their chosen fields, sufficient time may not have elapsed to allow more of them to have worked their way into the top echelons of organizations. As reasonable as this may be, however, women are not being promoted as quickly as men, and as a result, there’s lit- tle reason to expect to see many more at the tops of organizations in the near future. Apparently, something else seems to be involved—and, unfortunately, it’s more troublesome. We speak here of the persistence of powerful sex-role stereotypes. These are narrow-minded beliefs about the qualities of women and men and the kinds of tasks for which each is most appropriately suited.18 For example, old-fashioned—and inaccurate—though it may be, some people like to believe that females are not sufficiently
- 671. aggressive or determined to make it to the top.19 (Recall our discussion of stereotypes earlier in this chapter.) Sex-role stereotypes are problematic because they contribute to invisible barriers, known as the glass ceiling, that keep women from advancing as rapidly as men in certain fields.20 The metaphor, unfortunately, is all too accurate. Because nothing formally is ever said or written about what women are considered to be like or capable of doing, the barrier is invisible, like glass. And because it imposes a restriction on the level of an organization to which women may rise, it also acts as a ceiling. Although we often speak of glass ceilings as sources of discrimination against women in the workplace, the term also is used sometimes to identify similar invisible barriers imposed on other groups as well. PREJUDICE BASED ON SEXUAL ORIENTATION. Unlike people with physical disabilities, who are protected from discrimination by federal law, not much protection exists for another group whose members are frequently victims of prejudice—lesbian women, gay men, bisexuals and sex-role stereotypes Narrow-minded beliefs about the qualities of women and men and the kinds of tasks for which each is most appropriately suited. glass ceiling
- 672. Invisible barriers that keep women from advancing as rapidly as men in certain fields. 214 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION transgendered people (collectively referred to as the LGBT community). Existing protection comes at the local level, as several states and many municipalities have enacted laws to protect the rights of individuals in the workplace based on their sexual orientations. Unfortunately, although more people than ever are tolerant of nontraditional sexual orientations, antihomo- sexual prejudice still exists in the workplace.21 Indeed, about two-thirds of CEOs from major companies admit their reluctance to put a homosexual on a top management committee. Not surprisingly, without the law to protect them and with prejudices being widespread, many members of the LGBT community are reluctant to make their sexual orientations openly known. Fears of being “discovered,” exposed as someone with a nontraditional sexual orientation, represents a considerable source of stress among such individuals. For example, a gay vice presi- dent of a large office-equipment manufacturer admitted in a magazine interview that he’d like to become the company’s CEO but fears that his chances would be ruined if his sexual orientation were to become known. If the pressure of going through
- 673. working life with a disguised identity is disruptive, imagine the cumulative effects on organizations in which several employees are in this situation. Such misdirections of energy can become quite a serious threat to productivity. In the words of consultant Mark Kaplan, “Gay and lesbian employees use a lot of time and stress trying to conceal a big part of their identity.”22 To work in an organization with a homophobic culture, to have to endure jokes slurring gays and lesbians, can easily distract even the most highly focused employees. Fortunately, many companies are taking steps to reduce this problem.23 As a beginning, some 10,000 employers in the United States offer domestic partner health benefits for their employees. Of these, 95 percent offer the benefits to both same- sex and different-sex couples. Generally, the more successful the company, the greater is the chance that it offers domestic partner benefits. Fifty-one percent of Fortune 500 companies offer domestic partner health FIGURE 6.4 Anne Mulcahy: A CEO Worth Copying After 30 years at Xerox, Anne Mulcahy worked her way to the top, where she’s chair and CEO. Under her leadership, Xerox has maintained its position as a market leader despite a weak economy that has slowed technology spending in recent years. A well-respected member of the business community, Mulcahy served as a member of President Obama’s transition team in 2009. She appears here to the right of the president, along with Eric Schidt, CEO of Google, and David
- 674. Barger, CEO of JetBlue (pictured to the president’s left). U PI P ho to /B re nd an S m ia lo w sk i/P oo l/N ew sc om .
- 675. CHAPTER 6 • WORK-RELATED ATTITUDES: PREJUDICE, JOB SATISFACTION, AND ORGANIZATIONAL COMMITMENT 215 benefits, as do 80 percent of the Fortune 50. Clearly, although some companies are passively discouraging diversity with respect to sexual orientation, others encourage it, much to their own—and their employees’—advantages. PREJUDICE BASED ON RACE AND NATIONAL ORIGIN. The history of the United States is marked by struggles over acceptance for people of various racial and ethnic groups. Although the American workplace is now more racially diverse than ever, it is clear that prejudice lingers. Not only do members of various minority groups believe they are the victims of prejudice and discrimination, but they also are taking action. For example, the number of complaints of discrimination based on national origin filed at the Equal Employment Opportunity Commission (EEOC) has been increasing steadily in recent years—and discrimination victims have been winning such cases. For example, the Supreme Court of the state of Washington upheld a $389,000 judgment against a Seattle bank brought by a Cambodian American employee who was fired because of his accent. Outside the courtroom, companies that discriminate pay in other ways as well—notably, in lost talent and productivity. According to former EEOC Commissioner
- 676. Joy Cherian, employees who feel victimized “may not take the initiative to introduce inventions and other innovations,” adding, “every day, American employers are losing millions of dollars because these talents are frozen.”24 PREJUDICE BASED ON RELIGION. Although freedom of religion is the law of the land in the United States (primarily because of the Civil Rights Act of 1964), it’s sad but true that many people in the workplace have been made to feel uneasy, or even unwelcome, because of their religious beliefs. In extreme cases, people have suffered through acts of religious intolerance, defined as actions taken against persons or groups based on their faith.25 Such acts might take many forms, ranging from subtle, yet painful ridicule, to physical attacks on people and vandal- ism in places of worship. A survey of a broad cross-section of Americans has shown that religious bias is a reality in the U.S. workplace.26 This poses a serious concern for management, given that almost half of the people who report religious discrimination indicate that their job performance also is affected adversely as a result. Equally disturbing, 45 percent of employees have considered quitting because of religious discrimination. Not all religious groups are affected equally. Long having a presence in the United States, Christians and Jews are least likely to be victims of discrimination. However, groups such as Buddhists and Hindus, whose members have entered the U.S. work- force in growing numbers in recent years, have experienced more religious bias. In addition, as
- 677. waves of Islamic immigrants from the Middle East have come aboard, many Muslims also have found themselves targets of intolerance.27 This problem is fueled by the fact that less than a quarter of the people who experience religious discrimination report it to their bosses. Generally, this is because they either don’t know where to go in the company to express their concerns or because they feel that nothing would happen if they did. In fact, most companies fail to address matters of religious tolerance in their policy manuals and, not surprisingly, few managers are versed in how to handle religious discrimination. In general, then, it appears that issues of religious prejudice remain largely ignored in many companies. Strategies for Overcoming Workplace Prejudice: Managing a Diverse Workforce It’s one thing to identify prejudicial attitudes and quite another to eliminate them. Two major approaches have been taken toward doing precisely this— affirmative action and diversity management. As you’ll see, their overall goals and orientations are quite different. Affirmative Action In the United States, affirmative action is a policy that has been used to promote the nondiscrim- inatory treatment of women and members of minority groups in the workplace. Derived from civil rights initiatives of the 1960s, affirmative action involves efforts to give employment opportunities religious intolerance
- 678. Actions (e.g., personal ridicule, vandalism) taken against persons or groups based on their faith. affirmative action laws Legislation designed to give employment opportunities to groups that historically have been underrepresented in the workforce, such as women and members of minority groups. 216 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION to qualified individuals belonging to groups that traditionally have been disadvantaged. The rationale is straightforward. By encouraging the hiring of qualified women and minority group members into positions in which they traditionally have been underrepresented two things occur. First, such individuals will be given opportunities that they historically have been denied in the past (an immediate benefit). Second, more people will come to see that women and members of minority groups are able to succeed in the workplace, leading them to perceive that their negative stereotypes were misguided. Then, eventually, as these stereotypes begin to crumble, discrimina- tion will be reduced, along with the prejudicial attitudes on which it is based (a potential long- term benefit).
- 679. Over the years, some confusion has arisen with respect to the objectives of affirmative action, so let’s clarify.28 What the U.S. government had in mind may be referred to as nonpreferential affirmative action—efforts to get companies to conduct ongoing, conscious appraisal of their rules and procedures and to eliminate those that exclude women and members of minority groups without sufficient justification. Typically, this involves the following: 1. Taking steps to ensure that there is a diverse pool of applicants. 2. Based on the racial composition of this pool, predicting what the workforce would look like if the selection of employees were nondiscriminatory (this is the so-called affirmative-action goal). 3. Comparing results with goals and revising procedures and policies to alleviate the discrepancy. Over the years, controversies emerged with respect to the ideal of affirmative action goals because the language of the law was misleading. Although a goal is something you aim at, this is not what the government intended. What they had in mind was not so much a finite number that had to be met (despite the language used) so much as an image of what things should be like. Despite this, courts interpreted the law literally and held companies to specific numeric goals. So if, say, 20 percent of a company’s broad labor pool consisted
- 680. of African Americans, then courts required it to hire this percentage of African Americans. This form of affirmative action, known as preferential affirmative action, is generally what the public has in mind when they think of affirmative action. Today, although some people are enlightened, many remain unaware of the spirit of the law. After approximately 40 years of experience with affirmative action programs, major gains have been made in the opportunities available for women and members of minority groups. Indeed, most problems with affirmative action have occurred in its preferential form.29 However, nonpreferential affirmative action policies have been effective in increasing the attraction, selection, inclusion, and retention of underrepresented group members. Diversity Management: Orientation and Rationale Over the past few decades, organizations have become increasingly proactive in their attempts to eliminate prejudice and have taken it upon themselves to go beyond affirmative action requirements. Their approach has involved not merely hiring a broader group of people than usual but creating an atmosphere in which diverse groups can flourish.30 This is the idea behind diversity management. ORIENTATION. Specifically, efforts to manage diversity are aimed at promoting supportive, not just neutral, work environments for women and minorities.31 Diversity management calls not for
- 681. simply treating everyone alike and ignoring their differences, but recognizing and celebrating the differences between people with respect to the lifestyles and practices associated with their racial and ethnic heritages, their religions, their appearance, and so on. The notion of inclusion is key—that is, making people feel valued as worthwhile members of the organization. And when people feel that they are welcomed, accepted and valued instead of just tolerated, everyone benefits.32 Diversity management may be distinguished from affirmative action in four key ways, as summarized in Table 6.2.33 THE BUSINESS CASE FOR DIVERSITY. One cannot deny that companies are interested in managing diversity so that they can avoid becoming defendants in lawsuits claiming illegal discrimination. However, this generally is not the main reason. Instead, the primary motive is a nonpreferential affirmative action Efforts to get companies to conduct ongoing, conscious appraisals of their rules and procedures and to eliminate those that exclude women and members of minority groups without sufficient justification. preferential affirmative action The practice of hiring women and members
- 682. of minority groups in proportion to their repre- sentation in the population near organizations. diversity manage- ment programs Programs in which employ- ees are taught to celebrate the differences between people and in which organi- zations create supportive work environments for women and minorities. inclusion Making people feel valued as worthwhile members of the organization. CHAPTER 6 • WORK-RELATED ATTITUDES: PREJUDICE, JOB SATISFACTION, AND ORGANIZATIONAL COMMITMENT 217 traditional one—to improve business. With this in mind, we ask an important question: Can a “business case” be made for having a diverse workforce? In other words, do organizations with diverse workforces have advantages over those that don’t? Several studies reveal that the answer is yes.34 One investigation, for example, examined the financial success of banks that actively pursued a growth strategy (i.e., deliberate efforts to grow
- 683. larger in size). Among these institutions, the more highly diverse their workforces, the better they performed financially.35 This, in turn, added value to these banks, giving them advantages over their competitors. Researchers conducting another study reasoned that when companies use their human resources effectively they can lower their costs and thereby perform better than their competi- tors.36 To test this notion, they compared two groups of companies from 1986 through 1992. One group was composed of organizations that received awards from the U.S. Department of Labor for their exemplary efforts at managing diversity. The other group was composed of companies that had settled large claims against them for employment discrimination. To com- pare the performance of these organizations, the researchers relied on a key index of economic success—stock returns. Their findings were striking: Companies that made special efforts to use their diverse human resources were considerably more profitable than those that discriminated against their employees. The researchers explained that organizations that capitalized on the diversity of their workforces were better able to attract and retain the talented people needed for them to thrive. Indeed, this seems to be a major key to diversity. Organizations that effectively manage diver- sity are successful because they are especially adept at attracting and retaining pools of talented people from diverse backgrounds.37 And, of course, it comes as no surprise that
- 684. having the best people is essential to the success of any business. Clearly, managing diversity makes sense not only because it is the right way to treat people, but also because it is good business! With this in mind, it is not surprising that one consultant claimed that, “A corporation’s success will increasingly be determined by its managers’ ability to naturally tap the full potential of a diverse workforce.”38 And, as a recruiter for an executive search firm emphasized, “There is a strong business case [for diversity]. A diverse workplace isn’t a luxury, it’s a necessity.”39 Diversity Management: What Are Companies Doing? Considering the practical value of diversity management, you probably won’t be surprised that efforts to manage diversity are popular in today’s organizations. This is evidenced in a survey revealing that the number of companies with diversity management policies in place has been growing rapidly, with 75 percent already having them and 14 percent planning to add them soon.40 What exactly are these companies doing to promote diversity? We now identify four such tactics. TABLE 6.2 Affirmative Action Versus Diversity Management Both affirmative action and diversity management are designed to promote positive attitudes and to reduce discrimination toward women and members of minority groups. As outlined here, however, their rationales and approaches differ with respect to several key dimensions.
- 685. Dimension Affirmative Action Diversity Management Objective Adherence to legal regulations and bureaucratic procedures Systemic transformation of an organization’s culture (see Chapter 14) Focus Avoiding penalties associated with discrimination Positive images of people and celebration of what they can contribute to an organization Motivation Legal compliance Belief that there’s a good “business case” associated with promoting diversity Groups targeted Gender and race Any and all differences between people (e.g., religion, sexual preference, etc.) Source: Based on suggestions by Greene & Kirton 2009; see Note 33. 218 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION CONDUCT DIVERSITY TRAINING. Many companies conduct regular programs designed to develop people’s skills with respect to managing diversity.41 The best such programs do more than simply raise employees’ awareness about the nature and importance of diversity, but train them in ways to interact effectively with people who are different from themselves. The main techniques used for this purpose are as follows.42
- 686. � Cross-cultural understanding. Understanding the cultural differences responsible for why different coworkers behave differently on the job. � Intercultural communication. Learning to ensure that verbal and nonverbal barriers to communication across cultures are overcome. � Facilitation skills. Training in how to help others alleviate misunderstandings that may result from cultural differences. � Flexibility and adaptability. Cultivating the patience to take new and different approaches when dealing with others who are different. As you might imagine, the nature and extent to which companies are involved in diver- sity management training vary widely. At some companies, training efforts are minimal and informal. However, others take diversity training very seriously and are highly methodical about assessing its impact. One such organization is Sodexo, the leading provider of food and facilities management services in North America (see Figure 6.5). For example, after the training has been conducted (which focuses on virtually all employees), the company admin- isters a follow-up survey to assess the extent to which behavioral change is occurring (e.g., are members of minority groups being treated more respectfully?). The company also uses an extensive questionnaire known as the “Sodexo Diversity Index” to determine the extent to which its executives are demonstrating the company’s diversity
- 687. values. This measure assesses quantitatively and qualitatively both efforts and results (which, in turn, are used to determine compensation). USE LEADERS TO SEND STRONG MESSAGES ABOUT DIVERSITY. In many of the most diversity- minded companies, top leaders are involved actively in diversity management initiatives. For example, at the pharmaceutical giant Merck & Co., there are many different affinity groups—that is, informal collections of individuals who share a common identity with respect to such factors as race, ethnicity, or sexual preference (e.g., Asian American, African American, Hispanic, Native Indigenous, lesbian/gay/bisexual/transgendered people, and FIGURE 6.5 Diversity Is Valued Highly at Sodexo Sodexo’s commitment to providing a workplace where everyone feels accepted and valued is reflected in the extensive diversity training programs it has for employees. And the company’s successes in doing so has been recognized for many years by dozens of groups. affinity groups
- 688. Informal collections of individuals who share a common identity with respect to such factors as race, ethnicity, or sexual preference. N ew sc om . CHAPTER 6 • WORK-RELATED ATTITUDES: PREJUDICE, JOB SATISFACTION, AND ORGANIZATIONAL COMMITMENT 219 others). Acknowledging that understanding what people from different groups have to say is important. Chairman, President, and CEO Richard T. Clark personally meets with members of these groups. At Capitol One Financial Corporation, Founder, Chairman, and CEO Richard D. Fairbank has been involved actively in the company’s efforts to become a national leader in diversity. Among other things, he spearheaded the development of a set of company values in which diversity figures prominently (e.g., the company’s “Best People” program requires employees to “value diversity of people”) and takes the lead in promoting
- 689. them. Not only are the actions of these leaders likely to be effective directly but indirectly too because of the strong messages they send about the importance of diversity in their companies. REQUIRE SUPPLIERS TO PROMOTE DIVERSITY. Several companies are not only content to promote diversity within their walls, but also use their influence to get their suppliers to promote diversity. For example, FedEx awards contracts to suppliers that promote diversity. As a corpo- rate member of the National Minority Supplier Development Council (NMSDC), FedEx requires all minority, woman, and small business suppliers to obtain certification from a recognized third party such as the Small Business Administration (SBA), a supplier development council, or a state or local body. Starwood Hotels and Resorts expresses a commitment to diverse suppliers in its “Starwood Supplier Diverse Policy Statement.” It defines diverse vendors as those certified to be 51 percent or more owned, managed, or controlled by one or more members of the following groups: African Americans, Asian Indian Americans, Asian/Pacific- Islander Americans, Hispanic Americans, persons with disabilities, Native Americans, U.S. veterans, disabled U.S. veterans, and women. MAKE DIVERSITY A TOP PRIORITY. Being truly effective at managing diversity means far more than conducting some training programs and having executives talk to various people. To make everyone feel included and welcome in an organization,
- 690. diversity must be made a top priority. This may be done in the following ways. � Use ongoing diversity teams. Devoting permanent teams to diversity helps ensure that any gaps between diversity initiatives (e.g., multicultural skills learning, affinity groups, etc.) are filled. This enables a company’s diversity principles to be satisfied (i.e., attracting, developing, supporting a diverse workforce). Consider, for example, Convergys Corporation, a firm that provides customer service solutions to large corpo- rate clients. This organization has permanent “Diversity Action Teams” that strive to identify and recommend solutions to diversity-related issues that arise anywhere in the company. � Create reporting relationships that emphasize diversity. At Johnson & Johnson, for example, the company’s chief diversity officer reports directly to its chairman and CEO, William C. Weldon, assuring that it cannot get overlooked. At the pharmaceutical firm Abbott, each of the 13 people who report to the CEO is responsible for attaining diversity goals. By putting diversity at the top levels of these organizations, its high priority is assured. � Establish accountability. If an organization is going to be serious about promoting diversity, then its key people need to be held accountable for it. An effective way of doing this is by using pay policies that reward accomplishments
- 691. with respect to diver- sity. At IBM, for example, for a manager to receive the top performance evaluation, he or she must provide evidence of having fostered a spirit of inclusion among employees and of having promoted the company’s diversity values. If you want to be promoted at IBM, then you obviously need to go out of your way to do something that promotes diversity. As you might suspect, the companies that are involved most actively in promoting diversity do all these things plus a lot more. For a look at what’s done at a one company whose commitment to promoting diversity has been well established, see the OB in Practice section on page 220. 220 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION Job Satisfaction: Its Nature and Major Theories Some of the most widely studied of all workplace attitudes are those assessing people’s feelings toward their jobs, referred to as job satisfaction. In this section of the chapter, we will address some fundamental issues about job satisfaction and describe some of the major theories that have been used to explain it. The Nature of Job Satisfaction: Fundamental Issues Would you say you are satisfied with your job? When tens of thousands of American workers were asked much the same question in a multiyear survey
- 692. conducted in 2009, fewer than half reported that they were, in fact, satisfied. This number has dropped steadily since 1987 and is now at its lowest level (see Figure 6.6).45 How can this trend be explained? Although several factors may be responsible, two key ones appear to be involved. First, people’s expectations have risen over the years, leading them to look for more and more from their jobs. And as the bar rises, it becomes increasingly difficult for companies to give employees what they want, resulting in dissatisfaction. Second, it’s also likely that people find work less gratifying because the nature of jobs is changing.46 In particular, many people find that their jobs have become so highly specialized and narrow that they are not OB in Practice How the “Good Hands People” Use Diversity as a Competitive Weapon Promoting diversity in an organization is a challenging and important objective that takes a considerable commitment from everyone. It doesn’t just happen by itself. For some guidelines as to how to go about doing this, it’s useful to benchmark the best practices from a successful firm, such as the Allstate Insurance Company, the “good hands people.”43 Allstate is so committed to diversity that it uses the opportunity to promote diversity as a strategic weapon. The idea is straightforward: By reflecting the racial and ethnic diversity of its customers in its own workforce, Allstate can be sensitive to needs that otherwise may go unrecognized and,
- 693. therefore, unfulfilled by a more homogeneous group of employees. In the words of one former Allstate CEO, “Our competitive advantage is our people and our people are diverse. Nothing less than an integrated diversity strategy will allow the company to excel.”44 Allstate’s diversity management program takes a broad perspective. Not limited only to gender and ethnicity, it also pays attention to diversity with respect to age, religion, and sexual orientation. Specifically, it promotes diversity along three major fronts. � Allstate recruiters visit Historically Black Colleges and Universities to attract members of the African American community. It also recruits from schools in Puerto Rico in an effort to expand its Hispanic customer base. From the many awards it has received for its efforts in these areas (e.g., named one of the “Best Companies for Hispanics to Work”), such initiatives appear to be working. And the more such recognition the company receives, the easier it is for it to attract more individuals from these groups. � Attracting recruits is half the battle, but retaining them is far trickier. With this in mind, Allstate carefully trains all its employees to know that they are expected to show no bias toward others. It also goes out of its way to encourage development of minority candidates by showing them the routes to promotion within the company. In fact, minority candidates are considered seriously when it comes time to plan for succession up the ranks. � Within his or her first six months on the job, each new Allstate employee receives diversity training (about three- quarters of a million person-hours have been invested thus
- 694. far). This consists of classroom training that encourages people to recognize the way they see themselves and others as well as ways of sustaining a trusting environment among people who are different. Refresher courses also are given to managers from time to time. Allstate keeps careful statistical records of its diversity efforts and the company’s financial success. Twice a year, the company’s employees complete a questionnaire known as the “Diversity Index” asking them to indicate, among other things, the extent to which they witness insensitive or inappropriate behavior at work, the amount of dignity and respect they are shown, and their beliefs about the company’s commitment to delivering ser- vices to customers regardless of their ethnic background. Interestingly, the higher the overall score on the Diversity Index, the more managers are successful in promoting a diverse work environment, and the more satisfied they are. And the company’s statistics show that when this happens, Allstate does a better job of satisfying and retaining its customers. Indeed, Allstate is the top insurer of lives and auto- mobiles among African Americans and also ranks as the top insurer of homes and lives among Hispanic Americans. Clearly, at Allstate, ”good hands” come in many different colors, and making this happen is a highly successful business strategy. job satisfaction Positive or negative attitudes held by individuals toward their jobs. CHAPTER 6 • WORK-RELATED ATTITUDES: PREJUDICE, JOB SATISFACTION, AND ORGANIZATIONAL
- 695. COMMITMENT 221 especially gratifying. Regardless of the underlying reason for this trend, it may be considered alarming in view of the adverse effects that result when people’s job satisfaction levels are low.47 We will discuss these consequences in the next section of this chapter. As you might expect, the degree to which people are satisfied with their jobs also depends on exactly what those jobs are. For example, as you’ll see in Figure 6.7, the percentages of people who consider their jobs to be very satisfying vary considerably.48 Jobs that are the least satisfying tend to be ones that are low level and require the most rudimentary skills, whereas the ones that people find most satisfying tend to be more creatively fulfilling and allow work- ers to have a greater sense of accomplishment. This is only part of the story, however. Not 70 60 61.1 58.6 50.7 52.1 45.3M ea
- 696. n Pe rc en ta ge S at is fi ed 50 40 0 1987 1995 2000 2005 Year 2009 Job satisfaction in the United states has been declining steadily since 1987 FIGURE 6.6 U.S. Job
- 697. Satisfaction: Lowest Level in Over Two Decades Systematic surveys of a broad spectrum of American workers have revealed that their job satisfaction has been declining regularly in recent decades. In fact, the current percentage who report feeling satisfied with their jobs is the lowest ever recorded in this survey. Source: Based on data reported by Smith, 2009; see Note 45. FIGURE 6.7 Who’s Most and Least Satisfied with Their Jobs? Systematic differences exist in the levels of job satisfaction expressed among people in different occupational groups. Those ranking highest and lowest in job satisfaction are shown here. Source: Based on data reported by Smith, 2009;
- 698. see Note 45. 222 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION everyone holding low-level jobs is dissatisfied with them, and not all holders of high-level jobs find them to be especially satisfying. For example, many doctors and lawyers do work that allows for considerable creative fulfillment, although the people who do these jobs tend to be neither especially satisfied nor dissatisfied with them. In short, it isn’t easy to predict the level of satisfaction that people are likely to have solely on the basis of the jobs they hold. This underscores the fact that job satisfaction is an inherently complex phenomenon. In view of its complexities, it’s probably not surprising that OB scientists have devoted a great deal of attention to studying job satisfaction. A major objective of such research is to develop ways of promoting job satisfaction among employees. (To get a feel for your own level of job satisfaction and to understand how it’s measured, see the Individual Exercise on pages 238–239. The questionnaire in this exercise is modeled after one that’s widely used in research on job satisfaction.49) To do this effectively, it’s important for researchers to be guided by theories that focus on the processes that account for how job satisfaction operates. Fortunately, several such theories have been developed. Three stand out as being particularly insightful—the dispositional model, value theory, and the social information
- 699. processing model. The Dispositional Model of Job Satisfaction Do you know some people who always seem to like their jobs, no matter what they are doing, but others who are always grumbling about the work they do? If so, you are aware of the basic premise underlying what is known as the dispositional model of job satisfaction. This approach claims that job satisfaction is a relatively stable characteristic that stays with people through various situations.50 According to this conceptualization, people who like the jobs they are doing at one time also tend to like the jobs they may be doing at another time, even if the jobs are different. Supporting this approach, researchers have found that people are consistent in liking or dis- liking their jobs over as long as a 10-year period, although they may have had several different positions during that time. Such evidence is in keeping with the idea that job satisfaction operates much like the stable dispositions toward positive and negative affect described in Chapter 4. Indeed, research has shown that people who tend to be positive and cheerful most of the time do indeed tend to express higher job satisfaction than ones who tend to be “down” and gloomy.51 In keeping with this, research has shown that genetic factors play a role in job satisfaction. In other words, some people possess inherited tendencies to be either satisfied or dissatisfied with all aspects of their lives, including their jobs. Specifically, research has compared the levels
- 700. of job satisfaction expressed by identical twins with the levels of job satisfaction expressed by unrelated persons or by fraternal twins, who share only some of their genes.52 Results indicated that identical twins—who have the same genetic inheritance— expressed more similar levels of job satisfaction than did fraternal twins or unrelated persons. Moreover, this was true even when each member of a twin pair held a very different kind of job. Although these findings remain somewhat controversial, they have been replicated in other studies, so it does seem possible that genetic factors play a role in job satisfaction.53 You may be wondering how this can be so. Although genetic factors affect height, eye color, and other physical characteristics, it is much less obvious how they might influence job satisfac- tion. One way in which they could produce such effects involves the fact that genetic factors influence certain aspects of personality—aspects that might, in turn, be linked to job satisfaction. Such aspects of personality include the Big Five dimensions discussed in Chapter 4 and a general tendency to experience positive or negative moods (positive and negative affectivity).54 Both the Big Five and positive or negative affectivity (see Chapter 4) have been found to be linked to job satisfaction, and both of these aspects of personality appear to be partly heritable (i.e., partly the result of genetic factors). So, genetic factors may influence job satisfaction indirectly through their impact on key aspects of personality (see Figure 6.8). Direct evidence for this reasoning has been reported in a study showing that both the Big Five
- 701. dimensions of personality and positive affectivity–negative affectivity did indeed help explain the effects of genetic factors on job satisfaction.55 However, the effects of positive affectivity–negative affectivity appeared to be stronger. In a practical sense, these findings mean that genetic factors influence the tendency to experience positive feelings such as enthusiasm, confidence, and cheerful- ness versus negative feelings such as fear, hostility, and anger, and these tendencies, in turn, dispositional model of job satisfaction The conceptualization proposing that job satisfaction is a relatively stable disposi- tion of an individual—that is, a characteristic that stays with people through situations. CHAPTER 6 • WORK-RELATED ATTITUDES: PREJUDICE, JOB SATISFACTION, AND ORGANIZATIONAL COMMITMENT 223 influence job satisfaction. If you’ve ever known someone who seemed happy and cheerful in most situations or someone who was just the opposite, you get the picture. Of course, people are satisfied or dissatisfied with their jobs for lots of reasons. But some individuals, it appears, experience relatively high or low levels of job satisfaction because they possess personality traits that are linked to genetic factors.
- 702. Value Theory of Job Satisfaction Another approach to job satisfaction, known as value theory of job satisfaction, takes a broader look at the question of what makes people satisfied. This theory argues that almost any factor can be a source of job satisfaction so long as it is something that people value. The less people have of some aspect of the job (e.g., pay, learning opportunities) relative to the amount they desire, the more dissatisfied they will be—especially for those facets of the job that are highly valued. Thus, value theory focuses on discrepancies between what people have and what they want: The greater those discrepancies, the more dissatisfied they will be. This approach to job satisfaction implies that an effective way to satisfy workers is to find out what they want and, to the extent possible, give it to them. However, because it often is unknown what employees want, this is easier said than done. In fact, organizations sometimes go through great pains to find out how to satisfy their employees. With this in mind, a growing number of companies, particularly big ones, survey their employees systematically. For example, FedEx is so interested in tracking the attitudes of its employees that it has started using a fully automated online survey. The company relies on information gained from surveys of its 212,000 U.S.-based employees as the key to identifying sources of dissatisfaction and testing possible remedies. Social Information Processing Model It’s your first day on a new job. You arrive at the office excited
- 703. about what you will be doing, but you soon discover that your coworkers are far less enthusiastic. “This job stinks,” they all say, and you hear all the details when you hang out with them during lunch. Soon, your own satisfac- tion with the job begins to fade. What once seemed exciting now seems boring, and your boss, who once seemed so pleasant, now looks more like an ogre. Your attitudes changed not because of any objective changes in the job or your boss, but because you changed your outlook based on the messages you received from your coworkers. Several Aspects of the Big Five Dimensions of Personality (e.g., Emotional Stability, Agreeableness, Extraversion) Expressed Job Satisfaction Genetic Factors Positive Affectivity– Negative Affectivity FIGURE 6.8 Genetic Factors and Job Satisfaction: The Effects Are Indirect Genetic factors appear to influence job satisfaction, but these effects are indirect. Research suggests that
- 704. genetic factors influence certain aspects of personality (e.g., positive affectivity–negative affectivity, emotional stability, extraversion) and these, in turn, play a role in job satisfaction. Source: Based on findings reported by Ilies & Judge, 2003; see Note 55. value theory of job satisfaction A theory suggesting that job satisfaction depends primarily on the match between the outcomes individuals value in their jobs and their perceptions about the availability of such outcomes. 224 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION The idea that people’s attitudes toward their jobs are based on information they get from other people is inherent in the social information processing model. This approach specifies that people adopt attitudes and behaviors in keeping with the cues provided by others with whom they come into contact.56 The social information processing model is important insofar as it suggests that job satisfaction can be affected by such subtle things as the offhand comments others make (see Figure 6.9). With this in mind, it makes sense for managers to be very careful about what they say. A few well-chosen remarks
- 705. may go a long way toward raising employees’ job satisfaction. By the same token, a few offhand slips of the tongue may contribute to lowering morale. Consequences of Job Dissatisfaction—and Ways to Reduce Them Thus far, we alluded to the negative effects of job dissatisfaction, but without specifying exactly what these are. Now, we ask: What consequences may be expected among workers who are dissatisfied with their jobs? Several effects have been well documented. We now examine these. Employee Withdrawal: Voluntary Turnover and Absenteeism A few years ago, employees at a Safeway bakery in a small Oregon town were not particularly satisfied with their jobs. The bakery’s 130 employees were so upset that they frequently were absent and quit their jobs. And these were no minor problems. In one year alone, accidents resulted in 1,740 lost workdays—a very expensive situation. At unpopular working times, such social information processing model A conceptualization specifying that people adopt attitudes and behaviors in keeping with the cues provided by others with whom they come into contact. FIGURE 6.9
- 706. Social Information Contributes to Job Satisfaction According to the social information processing model of job satisfaction, the way people feel about their jobs is based on the attitudes expressed by others with whom they come into contact. By virtue of sharing their feelings about their jobs with one another, these workers are likely to be shaping one anothers’ attitudes. C hr is C oo pe r- Sm ith /A la m
- 707. y Im ag es . CHAPTER 6 • WORK-RELATED ATTITUDES: PREJUDICE, JOB SATISFACTION, AND ORGANIZATIONAL COMMITMENT 225 as Saturday nights, it was not unusual for as many as 8 percent of the workers to call in sick. Conditions were so bad that almost no one stayed on their jobs for more than a year. As this situation reveals, all too extremely, people who are dissatisfied with their jobs want little to do with them—that is, they go out of their way to minimize the extent to which they are involved with them. This process is known as employee withdrawal. The two major forms of employee with- drawal are voluntary turnover and absenteeism, which as we see are linked to job dissatisfaction. VOLUNTARY TURNOVER. The most extreme form of employee withdrawal is quitting, formally ending the employee–employer relationship for good, what is referred to as voluntary turnover. When employees quit their jobs, the costs to their organizations can be substantial. Most promi- nent among these are costs due to lost productivity as well as
- 708. the recruiting and training of replacements. These costs vary considerably for different jobs, as you might imagine. For exam- ple, these have been estimated as ranging from 30 to 50 percent of the annual base salary for unskilled, entry-level workers to 200 to 400 percent of the annual base salary for specialists in information technology (IT).57 Beyond dollars and cents, companies also are concerned about the quality of their workforces when people leave. As Bill Gates, cofounder of Microsoft, once said, “Take my 20 best people, and virtually overnight, Microsoft becomes a mediocre company.”58 This raises a very practical question—namely, why do employees quit their jobs? Knowing the answers certainly promises to provide valuable insights into ways of reducing the problem of turnover (and, of course, its associated expenses). Scientists addressed this question a few years ago by interviewing a sample of employees who resigned from a variety of positions. Their findings, summarized in Table 6.3, reveal that employees left for eight key reasons.59 As you review these reasons for quitting, you’ll notice that although some may have little to do with job satisfaction (e.g., learning about alternatives—although, a dissatisfied employee is more likely to be proactive in seeking such alternatives than one who is highly satisfied), others (e.g., affective, constituent, calculative, and normative) may be considered direct expressions of job dissatisfaction. In general, low levels of job satisfaction are associated with high levels of turnover, but this relationship is complex. As suggested in Table 6.3, there are
- 709. many factors at play, and only some of them appear to have any connection to job satisfaction. For example, if conditions are such that alternative positions are available, people may be expected to resign when feeling dissatisfied. However, when such options are limited—such as when the economy is weak and companies are not hiring—voluntary turnover is a less viable option. In other words, knowing that one is dissatisfied with his or her job does not automatically suggest that he or she will be inclined to quit. Indeed, many people stay on jobs that they dislike. THE HONEYMOON-HANGOVER EFFECT FOR VOLUNTARY TURNOVER. Thus far, we’ve shown that some people who are dissatisfied with their jobs are inclined to resign. This isn’t surprising. At that employee withdrawal Actions, such as chronic absenteeism and voluntary turnover (i.e., quitting one’s job), that enable employees to escape from adverse organizational conditions. voluntary turnover A form of employee withdrawal in which an individual resigns freely from his or her job. TABLE 6.3 Why Do Employees Leave Their Organizations? In a series of interviews with people who voluntarily quit their jobs, scientists found that their underlying
- 710. reasons fit into the eight distinct categories shown here. Reason Explanation (the person . . .) 1. Affective Does not enjoy the job or experiences in the organization. 2. Contractual Desire to get even with someone in the company who hasn’t done something that was expected. 3. Constituent Desire to end relationships with one or more of the people in the workplace. 4. Alternative Has more attractive job opportunities outside the organization. 5. Calculative Believes that the future with the organization will be unpleasant in one or more ways. 6. Normative Faces pressure from within the company to leave. 7. Behavioral Believes that leaving the organization is easy because remaining there isn’t highly valued by others. 8. Moral Believes that quitting is ethically appropriate because it avoids stagnation. Source: Based on suggestions by Maertz & Campion, 2004; see Note 59. 226 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION
- 711. point, of course, they seek new positions. And, to their delight, they tend to be happier in those posi- tions. This is welcome, because these individuals move to new jobs in search of higher levels of job satisfaction. That they find it, however, is not particularly surprising for several reasons. First, people in new positions need to justify their decision to leave their old jobs, which they can do by rational- izing about how wonderful their new positions are. In addition to this psychological reason, satisfac- tion on new jobs is likely to be high because the people associated with them are inclined to “put their best feet forward” by going out of their way to help their new colleagues feel welcome. So, for these reasons, people are likely to enjoy high levels of satisfaction on new jobs that they have taken in response to dissatisfaction with their old jobs. This is known as the honeymoon effect. On the job, as in life, honeymoons only last so long. Eventually, reality sets in and that honeymoon glow soon fades. If one’s initial satisfaction with a new job is based on limited, and often unrealistic, information, then it follows that as time goes on, people will have more realistic information about their jobs. Reality, although not necessarily harsh, is likely to make things more negative than they appear in the honeymoon glow. In other words, people’s levels of satisfaction are inclined to drop over time from when a position is brand new to when one gains more experience with it. In keeping with the idea that today’s reality is harsher than yesterday’s good times, this is dubbed the hangover effect. Given that the honeymoon effect describes a rise in satisfaction
- 712. in response to a new job and that the hangover effect describes a decline in satisfaction as that new job becomes less new, what you get when you put these together is referred to the honeymoon-hangover effect. That the honeymoon effect is followed by the hangover effect was demonstrated in a study in which scientists assessed the job satisfaction levels of several thousand high-level managers over a five- year period.60 The changes in their satisfaction levels over this period were precisely in keeping with the honeymoon-hangover effect. We see this in Figure 6.10, which shows levels of job sat- isfaction among employees who took new jobs in the third year of the study. As satisfaction dropped over the first two years, participants in the study found new jobs, as you might expect. Then, reflecting the honeymoon effect, their satisfaction was particularly high during this third year, when they were new to their jobs. However, as they became more used to those jobs (i.e., when the honeymoon was over), their levels of job satisfaction dropped to about where they were when the study began. Interestingly, this pattern describes shifts in job satisfaction in lots of honeymoon effect The tendency for people to enjoy high levels of satisfac- tion on new jobs that they have taken in response to dissatisfaction with their old jobs. hangover effect The tendency for people’s
- 713. levels of satisfaction to drop over time from when a position is brand new to when one gains more experience with it. honeymoon-hangover effect The tendency for the honeymoon effect to occur (i.e., for job satisfaction to increase as a dissatisfied person takes a new job) followed by the hangover effect (i.e., for the high levels of satisfaction associ- ated with a new job to decline over time). Year 1 (lower) Jo b Sa ti sf ac ti on (higher)
- 714. Year 2 Year 3 Time Year 4 Year 5 Job satisfaction is higher on the new job (honeymoon effect) … Declining job satisfaction leads to seeking new job … but it declines as time goes on (hangover effect) New job begins FIGURE 6.10 The Honeymoon-Hangover Effect Recent research has shown that people’s levels of job satisfaction tend to shift somewhat over time. As people become dissatisfied with their jobs, they take new ones. Immediately thereafter, satisfaction increases dramatically (the honeymoon effect), but soon thereafter, it declines (the hangover effect). Source: Based on data reported by Boswell, Boudreau, & Tichy, 2005; see Note 60. CHAPTER 6 • WORK-RELATED ATTITUDES: PREJUDICE, JOB SATISFACTION, AND ORGANIZATIONAL
- 715. COMMITMENT 227 people, suggesting that how satisfied they are with the work they do depends on where in their job tenure a researcher happens to assess their attitudes. THE UNFOLDING MODEL OF VOLUNTARY TURNOVER. As you might imagine, the decision to quit one’s job is not taken lightly; people consider a variety of different factors before making such an important decision. These have been described in a conceptualization known as the unfolding model of voluntary turnover, which is summarized in Figure 6.11.61 According to this model, whether or not someone quits a job is said to depend on the way two key factors unfold. These are as follows: � Shock to the system. An attention-getting event that gets employees to think about their jobs (e.g., merger with another company) � Decision frames. A set of internalized rules and images regarding how to interpret something that has occurred (e.g., “based on what I know from the past, is there an obvious response?”) As shown in Figure 6.11, the unfolding model of voluntary turnover recognizes that four possible decision paths can result. Trace these paths through the diagram as you read about each. 1. In Decision Path 1, a shock to the system occurs that matches an existing decision frame. So, for example, suppose your company loses a large account.
- 716. This unusual occurrence constitutes a shock to your system, leading you to think about what occurred and to assess what it means. If it has been your experience that when accounts are lost, jobs are lost too, you may decide to quit (before the company decides it for you). This doesn’t take much consideration. Likewise, it’s an easy decision for you if you reach the conclusion that lost accounts don’t really mean anything, so you decide to stay. unfolding model of voluntary turnover A conceptualization that explains the cognitive processes through which people make decisions about quitting or staying on their jobs. Yes Yes Yes No No No Not Negative Negative Stay Quit
- 717. Decision frame? Shock to system? Alternate job? Additional thoughtsNegative? Decision path 1 Decision path 2 Decision path 3 Decision path 4 FIGURE 6.11 The Unfolding Model of Voluntary Turnover According to the unfolding model of voluntary turnover, people make decisions about staying or leaving their current jobs based on a complex set of cognitive processes. The major considerations are whether or not there is a shock to the system (i.e., if something occurs that makes you consider leaving) and your decision frame (i.e., the things you believe). The various decision paths are summarized here. Source: Based on suggestions by Mitchell & Lee, 2001; see Note 61. 228 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION 2. In Decision Path 2, a shock to the system occurs, but in this case it fails to match a decision
- 718. frame, and there is no specific job alternative. For example, suppose a leveraged buyout occurs (i.e., your company was taken over by another). This comes as a shock, but it’s not exactly clear to you what it means. In such a case, you might assess how you feel about your organization. If, upon further reflection, you decide you like it, you probably will stay, especially since there is no alternative. If, however, this gets you to think about how awful the job is, you might decide to leave anyway, even without another job to fall back on. In either case, it’s not immediately obvious to you what to do because you lack a decision frame, so you are forced to give the matter a lot of thought. 3. In Decision Path 3, a shock to the system occurs and it fails to match a decision frame, but here, there is a specific job alternative available. Again, suppose there’s a leveraged buyout, which comes as a shock, and you find it difficult to interpret because it does not match any existing decision frames. However, in this case, because there’s an alternate job available, you compare your current job to this possible new one. If you think the future will be better by staying, you will be likely to do so. However, if you are so dissatisfied with your current job that you think the new one will be better, you will be inclined to leave. This, too, will be a difficult decision, although it’s made easier by the presence of an alternative. 4. Finally, in Decision Path 4, there is no shock to the system (e.g., no lost account and no leveraged buyout). As a result, no decision frame is considered,
- 719. leaving you unlikely to consider leaving in the first place. Under such circumstances, if you’re feeling dissatisfied, you may be inclined to quit if other conditions suggest that it’s a good idea. Otherwise, however, you probably would be unwilling to bother leaving, leading you to stay. In either case, it may take a while for you to make the decision since no shock to the system has occurred to stimulate you into thinking about things. Clearly, the unfolding model is quite complex. However, despite this complexity, and the fact that the conceptualization is relatively new to the field of OB, it has received strong research support.62 Accordingly, the unfolding model may be considered a valuable approach to understanding the relationship between job satisfaction and turnover. ABSENTEEISM. Thus far, we’ve discussed only one form of employee withdrawal, voluntary turnover. It’s important to note, however, that withdrawal also takes the form of absenteeism— that is, the practice of staying away from the job when scheduled to work. Unscheduled absences are a less expensive form of withdrawal than turnover because they are temporary instead of permanent. This is not to say, however, that the costs of unscheduled absences are trivial. Far from it. According to a major human resources consulting firm, these have been estimated to average approximately 15 percent of payroll expenses.63 As in the case of turnover, dissatisfaction with the job is a predominant reason for absen-
- 720. teeism.64 (Recall our example of the Safeway bakery on pages 224–225.) However, absenteeism is linked even more strongly to low levels of job satisfaction. Specifically, research has shown that the more dissatisfied people are with their jobs, the more likely they are to be absent from work. This was demonstrated in a study of British health-care workers whose questionnaire responses on a measure of job satisfaction were compared to records of their absenteeism over a two-year period.65 As summarized in Figure 6.12, workers whose levels of job satisfaction dete- riorated over the study period showed an increase in absenteeism; those whose satisfaction increased over the study period showed a decrease in absenteeism. In view of the costly nature of absenteeism—especially in view of the fact that it can be highly disruptive to company operations—findings such as these are of great concern. Job Performance: Are Dissatisfied Employees Poor Performers? Although some dissatisfied employees leave their jobs, of course, not all do. What can be expected of those who remain? Does job performance suffer among dissatisfied employees? As in the case of turnover, the correlation between job performance and satisfaction also is positive but relatively modest.66 However, research shows that happier workers are, in fact, more productive.67 For some insight into why this relationship exists, let’s consider a study that goes beyond individual performance to something that matters greatly to organizations—their financial success. The possibility of a connection between individual job satisfaction and the financial
- 721. absenteeism The practice of staying away from the job when scheduled to work. CHAPTER 6 • WORK-RELATED ATTITUDES: PREJUDICE, JOB SATISFACTION, AND ORGANIZATIONAL COMMITMENT 229 Job satisfaction decreased Job satisfaction increased Many days present (low absenteeism) Initial measurement Time N um be r of
- 722. D ay s Pr es en t Two years later Few days present (high absenteeism) Absenteeism decreased among workers whose job satisfaction rose over time Absenteeism rose among workers whose job satisfaction decreased over time FIGURE 6.12 Relationship Between Job Satisfaction and Absence A study tracing the levels
- 723. of job satisfaction and absenteeism of health-care workers over a two-year period found the relationship depicted here. Absenteeism declined among those whose satisfaction rose whereas absenteeism rose among those whose job satisfaction declined. Source: Based on data reported by Hardy, Woods, & Wall, 2003; see Note 65. performance of companies was examined by a team of researchers who assessed the satisfaction of thousands of employees working over an eight-year period in some of the largest companies in the United States.68 The scientists also computed the financial performance levels of the organizations in which these individuals worked using two key indexes that are widely used by financial analysts, return on assets and earnings per share. Because the data were collected during a period in which the economy showed a variety of ups and downs (1987–1995), there was reason to believe that the study’s findings were not the results of any fluke conditions that might have occurred. By conducting sophisticated statistical analyses, the scientists arrived at two fascinating conclusions. First, job satisfaction and financial performance were, in fact, associated with each
- 724. other to a considerable degree. Second, and perhaps more interestingly, this was not the result of the tendency for highly satisfied workers to perform at higher levels (i.e., job satisfaction enhances financial performance), as you might expect. Instead, it was the other way around: The good financial performance of the companies promoted high levels of job satisfaction (i.e., finan- cial performance promotes job satisfaction). Let’s consider how this appears to work. Imagine that because the company adopts policies that have been found to enhance employees’ performance (e.g., involving them in key decisions, paying them for acquiring new skills), employees show high levels of performance. In turn, this good per- formance enhances the company’s financial success. And, since it is successful, it can offer good benefits and increased pay, and enjoy a very positive reputation. The result? Employees feel well treated and are proud to work for their companies, and this leads them to experience high levels of job satisfaction. This is not just conjecture; the research found that this is precisely what occurred. Job Satisfaction and Injuries: Are Happy Workers Safe Workers? Injuries at work are a serious matter—both for the employees who are hurt and their organizations. So anything that can reduce the risk of serious workplace accidents is, potentially, very valuable. Efforts to reduce workplace injuries often have focused on the design of equipment and jobs, and on restricting the number of hours employees can work so as to protect them from fatigue—all major factors in accidents. Although these practices are indeed
- 725. effective there is more involved. Evidence suggests that enhancing job satisfaction also has beneficial effects on job safety. 230 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION This has been demonstrated in organizations using so-called high-performance work systems.69 These are organizations that offer employees opportunities to participate in decision making, provide incentives for them to do so, and emphasize opportunities to develop skills. Not only are employees highly satisfied in such organizations, but within them, they also perform their jobs very safely.70 A team of researchers studying this phenomenon obtained ratings of work environments from several thousand employees to assess the extent to which their work environments were high-performance systems.71 The researchers also obtained measures of job satisfaction from the same employees as well as records of occupational injuries from the companies in which these individuals worked. It was found that the greater the degree to which the organizations met the descriptions of high-performance organizations, the more the individuals who worked in them reported being highly satisfied with their jobs, and the lower were the levels of work-related accidents (see Figure 6.13). Further statistical analyses revealed also that to some extent the low accident rates were the direct result of the high levels of job satisfaction experienced. In view of
- 726. this, the importance of promoting job satisfaction cannot be overstated. Job Satisfaction and Life Satisfaction Here’s an interesting question to ponder: Do you think that people who are happy on their jobs also tend to be happy in their lives in general? You might not be surprised to learn that the answer is yes. After all, work is a large part of life and being happy on the job has a good chance of “spilling over” into other parts of our lives. Putting it differently, people who are happy with their jobs also tend to be happy with their lives in general.72 Research suggests that mood, the positive and negative feelings we experience throughout the day (as we discussed in Chapter 5), is involved in this relationship.73 Consider, for example, a study conducted among university employees who rated their feelings of job satisfaction and their mood states several times each day.74 Participants did this both on workdays and nonwork- days, so they rated their moods and job satisfaction both at work and at home. Results indicated that job satisfaction and mood were closely linked at work; in fact, each influenced the other. High job satisfaction led to positive moods, and positive moods, in turn, triggered high job satisfaction. Perhaps even more interesting, job satisfaction at work also influenced the moods these employees experienced at home. High job satisfaction at work generated positive moods away from work, whereas low job satisfaction at work generated negative moods. In other words, job
- 727. satisfaction spilled over into employees’ moods at home. high-performance work systems Organizations that offer employees opportunities to participate in decision making, provide incentives for them to do so, and emphasize opportunities to develop skills. Reduced Occupational Injuries High- Performance Work Systems Increased Job Satisfaction FIGURE 6.13 Job Satisfaction and Injuries at Work Research indicates that high-performance work systems (i.e., ones that provide employees with opportunities to participate in decision making, incentives that encourage them to do so, and human resource practices designed to ensure skill development) can increase performance and job satisfaction and offer the added benefit of reducing accidents. This effect
- 728. appears to stem, at least in part, from enhanced job satisfaction among employees. Apparently, positive attitudes toward their work make employees more careful, thus helping them to avoid accidents. Source: Barling, et al., 2003; see Note 71. CHAPTER 6 • WORK-RELATED ATTITUDES: PREJUDICE, JOB SATISFACTION, AND ORGANIZATIONAL COMMITMENT 231 In summary, there is no doubt that job satisfaction is very important in organizations. Under some conditions, satisfied employees are more productive than dissatisfied ones; they also are less likely to quit their jobs or to experience serious accidents, and are more likely to experience positive feelings and moods at home. These reflect many practical reasons to promote job satisfaction. However, there’s also an ethical consideration—making employees satisfied happens to be the right thing to do. For a discussion of this point, see The Ethics Angle section above. Organizational Commitment: Attitudes Toward Companies Thus far, our discussion has centered on people’s attitudes toward one another and toward their jobs. However, to fully understand work-related attitudes we also must focus on people’s atti- tudes toward the organizations in which they work—that is, their organizational commitment. The concept of organizational commitment is concerned with
- 729. the degree to which people are involved with their organizations and are interested in remaining within them.75 It is important to note that organizational commitment generally is independent of job satisfaction. Consider, for example, that a nurse may really like the kind of work she does, but dis- like the hospital in which she works. This may lead her to seek a similar job elsewhere. By the organizational commitment The extent to which an individual identifies and is involved with his or her organization and/or is unwilling to leave it (see affective commitment, continuance commitment, and normative commitment). The Ethics Angle Promoting Job Satisfaction by Treating People Ethically In view of the negative consequences of dissatisfaction, it makes sense to consider ways of raising people’s levels of satisfaction on the job. But avoiding the organizational costs of dissatisfaction is not the only consideration. Many managers also are motivated by
- 730. a more humanistic consideration—namely, they feel an ethical obligation to keep their employees happy not because of any benefits that stem from it (e.g., productivity) but for its own sake. With this in mind, what can managers do to raise people’s levels of job satisfaction? We offer two recommendations. Allow Employees to Select Their Own Benefits Growing numbers of companies, including the data-management giant Oracle, are instituting so-called cafeteria-style benefit plans, which give employees opportunities to select the particular fringe benefits they desire from a menu of available options. We will discuss this more in Chapter 7, but for now, consider two key benefits that result from such programs. First, as we discussed in Chapter 2, people believe they’ve been treated in a procedurally fair manner when they are given a say in decisions affecting them. Not surprisingly then, employees who have such plans available to them are likely to be pleased because they believe that their companies are treating them fairly. Second, according to the value theory of job satisfaction described earlier in this chapter, people who are given opportu- nities to select benefits they desire will be likely to feel satisfied with their jobs. After all, the programs provide opportunities for employees to minimize discrepancies between what they have and what they want, at least with respect to fringe benefits. With these considerations in mind, there’s good reason for companies to allow employees to select their own benefits
- 731. whenever possible. Improve the Quality of Supervision It probably comes as no surprise that job satisfaction is high among employees who believe that their supervisors are competent, treat them with respect, and have their best interests in mind. To illustrate this, let’s return to the case of the dissatisfied bakery employees that plagued the Safeway store described earlier (see pages 224–225). In response to the serious turnover problems, company officials transformed their management style. Instead of being highly intimidating, leaving employees feeling powerless and discouraged, they loosened their controlling ways and began treating people with the dignity and respect they deserved. The results were dramatic: Absenteeism fell from 8 percent to 0.2 percent, and voluntary turnover plummeted from almost 100 percent annually to less than 10 percent. There can be no doubt that improving the quality of super- vision at this store helped reduce the vexing organizational prob- lem of employee withdrawal. But looking at it from an ethical perspective highlights a major point. Why was absenteeism reduced? It’s because employees were treated so much better that they no longer felt the need to escape from being mistreated by staying home. Maybe instead of framing the absenteeism as a business problem, it should have been viewed as an indication of a managerial breech of ethics—that is, not treating employees in a way to which they are entitled as human beings. Managers who treat people as they deserve can be quite effective simply because they’ve done the right thing.
- 732. 232 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION same token, a waiter may have positive feelings about the restaurant in which he works, but may dislike waiting on tables. This may lead him to consider taking another position in the restaurant, such as host or bartender. These complexities illustrate the importance of studying organizational commitment. Our presentation of this topic will begin by examining the different dimensions of organizational commitment. We then will review the impact of organizational commitment on organizational functioning and conclude by presenting ways of enhancing commitment. Varieties of Organizational Commitment Being committed to an organization is not only a matter of “yes or no” or even “how much?” Distinctions also can be made with respect to “what kind?” of commitment. Specifically, scientists have distinguished among three distinct forms of commitment, which we review here (see the overview in Figure 6.14).76 CONTINUANCE COMMITMENT. Have you ever stayed on a job because you just didn’t want to bother to find a new one? If so, you are already familiar with the concept of continuance commitment. This refers to the strength of a person’s desire to remain working for an organization due to the belief that it will be costly to leave. The longer people remain in their organizations, the more they stand to lose what they have invested in them over the years (e.g., retirement plans, close
- 733. friendships). Many people are committed to staying on their jobs simply because they are unwilling to risk losing these things. They also may be unwilling to forego any job security they might have based on their seniority in their current organizations. This is a particular concern in an era in which companies are cutting jobs regularly and new ones are hard to find. Individuals who have such beliefs may be said to have high degrees of continuance commitment. NORMATIVE COMMITMENT. A second type of organizational commitment is normative commitment. This refers to employees’ feelings of obligation to stay with their organizations because of pressures from others. People who have high degrees of normative commitment are concerned greatly about what others would think of them for leaving. They would be reluctant to disappoint their employers and concerned that their fellow employees might think poorly of them for resigning. If you were a tax accountant who was thinking of taking a position in a new firm, for example, your colleagues may encourage you strongly not to leave until the busy season preceding the April 15 personal income tax filing deadline has passed. And if you have a high degree of continuance commitment, you would be likely to satisfy their requests by not leaving your colleagues until they could find and train a suitable replacement. AFFECTIVE COMMITMENT. The two types of commitment we’ve discussed thus far are not especially positive in that they do not suggest anything about an individual’s connections to
- 734. continuance commitment The strength of a person’s desire to continue working for an organization because he or she needs to do so and cannot afford to do otherwise. normative commitment The strength of a person’s desire to continue working for an organization because he or she feels obligations from others to remain there. Continuance Commitment Continue working for an organization because you cannot afford to leave. Normative Commitment Continue working for an organization because you face pressure from others to remain. Affective Commitment
- 735. Continue working for an organization because you agree with it and desire to remain there. Organizational Commitment FIGURE 6.14 Three Types of Organizational Commitment Scientists have distinguished among the three different types of organizational commitment summarized here. CHAPTER 6 • WORK-RELATED ATTITUDES: PREJUDICE, JOB SATISFACTION, AND ORGANIZATIONAL COMMITMENT 233 an organization based on their liking and attraction to it. However, the third type of organiza- tional commitment, affective commitment, takes this into account. Specifically, affective commitment refers to the strength of people’s desires to continue working for an organiza- tion because they regard it positively and agree with its underlying goals and values. People feeling high degrees of affective commitment desire to remain in their organizations because they endorse what these companies stand for and are interested
- 736. in supporting their missions. Sometimes, particularly when an organization is undergoing change, employees may wonder whether their personal values continue to be in line with those of the organizations in which they continue to work. When this happens, they may question whether they still belong, and if they believe they do not, they resign. A few years ago, Ryder Truck Company successfully avoided losing employees on this basis by publicly reaffirming its corporate values. Ryder was facing a situation in which it was not only expanding beyond its core truck leasing business, but also facing changes due to deregulation (e.g., routes, tariffs, taxes). To help guide employees through the tumultuous time, chief executive Tony Burns went out of his way to reinforce the company’s core values—support, trust, respect, and striving. He spread the message far and wide throughout the company, using videotaped interviews, articles in the company magazine, plaques, posters, and even laminated wallet-size cards carrying the message of the company’s core values. Along with other Ryder officials, Burns is convinced that reiterating the company’s values was responsible for the high level of affective commitment that the company enjoyed during this turbulent period. Why Strive for an Affectively Committed Workforce? As you might imagine, people who feel high degrees of affective commitment toward their organizations behave differently from those who do not. Specifically, several key aspects of work behavior have been linked to affective commitment.77
- 737. AFFECTIVELY COMMITTED EMPLOYEES CONTRIBUTE TO SUCCESSFUL ORGANIZATIONAL PERFORMANCE. Naturally, officials are concerned greatly with how well their companies perform financially (e.g., with respect to such key factors as profit, sales growth, market share, etc.). Interestingly, a study conducted recently in the People’s Republic of China found that these important indexes are linked to organizational commitment.78 Surveying managers from 463 companies, the researchers distinguished between organizations in terms of the practices used to manage human resources. Some were oriented toward maximizing perfor- mance (such as by training employees in the latest developments in their fields) whereas others were geared more toward maintaining performance and stability (such as by retaining managers as long as they wish to remain in the company). The managers also completed scales assessing their degrees of affective commitment and continuance commitment to their companies. The connections between these variables, as summarized in Figure 6.15, were quite interest- ing. As you might expect, the researchers found that companies using performance-oriented management practices were more successful financially than those focusing on merely maintain- ing the status quo. Organizational commitment played important roles in these relationships. Specifically, the reason why performance-oriented practices boosted performance was that these practices enhanced managers’ feelings of affective commitment
- 738. and these, in turn, led people to behave in ways that enhanced their companies’ financial success. However, companies using maintenance-oriented practices did not fare as well. Not feeling particularly inspired, managers in these companies did not experience high levels of affective commitment. Instead, maintenance-oriented practices raised feelings of continuance commit- ment, and of course, people who stay on their jobs while simply “going through the motions” and believing they have no better options are not especially productive. In fact, research has found that continuance commitment is not associated with high levels of job performance (sometimes, it even interferes with it, in fact).79 Accordingly, companies in the Chinese study that used maintenance-oriented practices, and whose managers experienced high levels of affective commitment as a result, were found not to be high performers financially. Based on this study, it’s clear that managers will want to be keenly interested in promoting affective commitment. Later in this chapter, we will offer some suggestions about how to do so. affective commitment The strength of a person’s desire to work for an organization because he or she regards it positively and agrees with its goals and values.
- 739. 234 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION Companies’ Management Practices Performance- oriented High affective commitment Improved Unchanged High continuance commitment Maintenance- oriented Managers’ Commitment Companies’ Financial Performance FIGURE 6.15
- 740. The Financial Benefits of Affective Commitment Research has shown that when companies use performance- oriented management practices, it enhances affective commitment among managers. This, in turn, helps boost those companies’ financial performance. In contrast, when companies use maintenance-oriented management practices, it enhances continuance commitment among managers. This, in turn, has no effect on the financial performance of those companies. Source: Based on findings by Gong et al. (2009); see Note 78. AFFECTIVELY COMMITTED EMPLOYEES ARE UNLIKELY TO WITHDRAW. The higher degrees of affective commitment employees have for their organizations, the less likely they are to resign from them or to be absent from them (what we referred to as withdrawal behavior in the context of job satisfaction). Affective commitment leads people to stay on their jobs and to show up ready to work when they are expected to do so.80 This phenomenon has been demonstrated in a large-scale study in which dropout rates among U.S. Air Force cadets were traced over the four years required to get a degree. The higher the affective commitment cadets had toward the Air Force upon entering the program, the less likely they were to drop out.81 The fact that affective commitment levels at one time could predict turnover several years later provides a strong indication of the importance of organizational commitment as a work-related attitude. (Is affective commitment related to absenteeism and turnover all around the world, or do cultural factors affect this relationship?
- 741. For a discussion of this issue, see the Today’s Diverse and Global Organizations section on page 235.) AFFECTIVELY COMMITTED EMPLOYEES ARE WILLING TO MAKE SACRIFICES FOR THEIR ORGANIZATIONS. Beyond remaining in their organizations, those who are highly committed to them demonstrate a willingness to make sacrifices required for their organizations to thrive. We see this, for example, among the many employees in recent years who have remained with their companies despite reluctantly facing pay cuts. Airline employees are a good example, as many have endured several rounds of pay cuts but have remained on their jobs (see Figure 6.16). Some of the most extreme examples may be seen among CEOS who, in recent years, have passed up huge financial rewards for the sake of helping their companies.82 In recent years, CEOs of companies such as Google, Capital One Financial, Pixar, and Apple Computer have given up their usual multimillion-dollar salaries to take only $1. Of course, they’re not always being totally noble, and they won’t be going hungry anytime soon because they still receive stock options worth many millions of dollars. Although cynics may claim that these $1 salaries are merely publicity stunts, there’s at least one way that those who take them are helping their companies. By showing that they are willing to take only company stock, these individuals are sending a strong message about their confidence in their companies. And as economists tell us,
- 742. this can help a company greatly. CHAPTER 6 • WORK-RELATED ATTITUDES: PREJUDICE, JOB SATISFACTION, AND ORGANIZATIONAL COMMITMENT 235 FIGURE 6.16 Committed Employees Make Tough Sacrifices Weeks after US Airways pilot Captain Chesley “Sully” Sullenberger safely ditched his stalled Airbus A320 in the Hudson River in January 2009, saving 155 lives, he explained to the aviation subcommittee of the U.S. House of Representatives that safety was being compromised as pay cuts by airlines were leading experienced pilots to leave their jobs. His own pay had been cut 40 percent in recent years, and his once secure pension was terminated and replaced with a promise worth pennies on the dollar. Some, such as Captain Sullenberger, expressed their commitment to their airlines by remaining with them and “sharing their pain” during a recessionary period. Others, however, couldn’t afford to remain committed and reluctantly were forced to seek new careers. Today’s Diverse and Global Organizations Does Absenteeism Mean the Same Thing in Canada and China? It is easy to understand why people who have low commitment to their jobs may want to stay away from them. However, the degree
- 743. to which people actually express their low commitment through absence may well be influenced by cultural factors. This idea was tested in an interesting study in which large groups of employees from Canada and the People’s Republic of China were surveyed about their attitudes toward being absent from work.83 In general, Chinese managers pay far greater attention to absenteeism than their Canadian counterparts. For the most part, absence is very strongly discouraged—so much so, that even an uncommitted Chinese employee is unlikely to stay home from work. In keeping with this, the Chinese frown on absence based on illness, whereas the Canadians generally accept illness as a valid excuse for being out of work. This is consistent with the idea that in Chinese culture, a person of good character is expected to maintain self-control, and taking time off work due to illness would be an indication of lack of control.84 But there was an interesting exception to this general tendency for the Chinese to frown on absenteeism. Speci- fically, compared to the Canadians, the Chinese are more likely to take time off from work to deal with personal or family issues. What’s more, they believe that doing this is much more appropriate than do Canadians. There are two reasons for this. First, unlike their Canadian counterparts, the Chinese are not paid when they do not go to work. As such, they are not receiving pay for work they didn’t do, avoiding the potential guilt of overpayment inequity (feeling that they were getting larger rewards than they deserved; see Chapter 7). Furthermore, during the time of the study, it first became possible in China for citizens to own private homes. Recognizing this, employers generally considered it accept- able for employees to take time off work to attend to house- hold maintenance.
- 744. These findings underscore a key point: Whereas lack of commitment may encourage absenteeism, low affective com- mitment may not, in and of itself, lead specific employees to be absent. At least one other factor, values inherent in employees’ national cultures, also plays a role. © M ic ha el R ey no ld s/ C or bi s A ll ri gh ts r
- 745. es er ve d. 236 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION This example should not be taken as an indication that only highly magnanimous gestures result from commitment. In fact, small acts of good organizational citizenship (see Chapter 11), such as voluntarily pitching in to help others are also likely to occur among people who are highly committed to their organizations.85 This makes sense if you consider that it would take people who are highly committed to their organizations to be willing to make the investments needed to give of themselves for the good of their companies. In view of these benefits of affective commitment, organizations often take the steps necessary to enhance commitment among employees. We now describe various ways of doing this. How to Promote Affective Commitment Some determinants of organizational commitment fall outside of managers’ spheres of control, giving them few opportunities to enhance these feelings. For example, commitment tends to be lower when the economy is such that employment opportunities are plentiful. An abundance of
- 746. job options surely will lower continuance commitment, and there’s not too much a company can do about it. However, although managers cannot control the economy, they can do several things to make employees want to stay working for the company—that is, to enhance affective commitment. ENRICH JOBS. People tend to be highly committed to their organizations to the extent that they have a good chance to take control over the way they do their jobs and are recognized for making important contributions. When people get to perform jobs they believe are interesting and that provide opportunities to do work that challenges them mentally, they demonstrate their commit- ment to the organizations by working hard. In view of this, the practice of enriching jobs is an effective way of enhancing motivation. As such, we will discuss it more thoroughly in Chapter 7. For now, however, we simply wish to make it clear that enriching jobs also is an effective way to build commitment. ALIGN THE INTERESTS OF THE COMPANY WITH THOSE OF THE EMPLOYEES. Whenever making something good for the company also benefits employees, those employees are likely to be highly committed to those organizations. Many companies establish this directly by introducing gain-sharing plans—that is, incentive plans in which employees receive bonuses in proportion to their companies’ profitability. Such plans are often quite effective in enhanc- ing organizational commitment, especially when they are administered fairly.
- 747. An example of a gain-sharing plan may be found at Sheridan Memorial Hospital, located in the small town of Sheridan, Wyoming.86 In 2009, this 88-bed hospital introduced a gain-sharing plan to give its 400 employees a direct stake in the hospital’s success. Employees are rewarded for doing things that contribute to improvements in patient satisfaction scores and profitability. By tying the hospital’s success to their own, the plan is expected to have a beneficial effect on building commitment. RECRUIT AND SELECT NEW EMPLOYEES WHOSE VALUES CLOSELY MATCH THOSE OF THE ORGANIZATION. Recruiting new employees is important not only insofar as it provides opportunities to find people whose values match those of the organization, but also because of the dynamics of the recruitment process itself. Specifically, the more an organization invests in someone by working hard to lure him or her to the company, the more that individual is likely to return the same investment of energy by expressing commitment to the organization. In other words, companies that show their employees they care enough to work hard to attract them are likely to find those individuals, in turn, strongly committed to them. In conclusion, it is useful to think of organizational commitment as an attitude that may be influenced by managerial actions. Not only might people be selected who are predisposed to be committed to the organization, but also various measures can be
- 748. taken to enhance commitment in the face of indications that it is suffering. gain-sharing plans Incentive plans in which employees receive bonuses in proportion to their companies’ profitability. CHAPTER 6 • WORK-RELATED ATTITUDES: PREJUDICE, JOB SATISFACTION, AND ORGANIZATIONAL COMMITMENT 237 1. Define attitudes and work-related attitudes, and describe the basic components of attitudes. Attitudes are the stable clusters of feelings, beliefs, and behavioral tendencies directed toward some aspect of the external world. Work-related attitudes involve such reactions toward various aspects of work settings or the people in them. All attitudes consist of a cognitive component (what you believe), an evaluative component (how you feel), and a behavioral component (the tendency to behave a certain way). 2. Distinguish between prejudice and discrimination, and identify various victims of prejudice in organizations. Prejudice refers to negative attitudes toward members of specific groups, and discrimination refers to treating people differently because of these prejudices. Today’s workforce is characterized by high levels of diversity, with many groups
- 749. finding themselves victims of prejudicial attitudes and discriminatory behaviors (based on many different factors, including age, sexual orientation, physical condition, racial or ethnic group membership, gender, and people from different religions than our own). Although people are becoming more tolerant of individuals from diverse groups, prejudicial attitudes persist. 3. Describe some of the things being done by today’s organizations to manage diversity in their workforces and the effectiveness of these practices. To help tap the rich pool of resources available in today’s highly diverse workforce, many companies are using diversity management programs— techniques for systematically teaching employees to celebrate the differences among people. Typically, these programs go beyond efforts to recruit and hire women and members of minority groups, to creating supportive work environments for them. To promote diversity, organizations are conduct- ing diversity training, using leaders to send strong messages about diversity, requiring sup- pliers to promote diversity, and making diversity a top priority. Although implementing diversity management programs is potentially difficult, experts acknowledge that the bene- fits, both organizational and personal, are considerable. For example, research has shown that companies whose employees systematically embrace diversity tend to be more prof- itable than those that allow discrimination to occur. 4. Explain the concept of job satisfaction, and summarize three major theories of job
- 750. satisfaction. Job satisfaction involves positive or negative attitudes toward one’s work. The dispositional model of job satisfaction suggests that job satisfaction is a relatively stable characteristic that stays with people over various situations. Value theory suggests that job satisfaction reflects the apparent match between the outcomes individuals desire from their jobs (what they value) and what they believe they are actually receiving. Finally, the social information processing model specifies that people adopt attitudes and behaviors in keeping with the cues provided by others with whom they come into contact. 5. Describe the consequences of job dissatisfaction and ways to promote job satisfaction. When people are dissatisfied with their jobs, they tend to withdraw. That is, they are frequently absent and are likely to quit their jobs. However, evidence suggests that job performance is only very weakly associated with dissatisfaction. Levels of job satisfaction can be raised by paying people fairly, improving the quality of supervision, decentralizing control of organizational power, and assigning people to jobs that match their interests. 6. Describe the concept of organizational commitment, its major forms, the consequences of low levels of organizational commitment, and how to overcome them. Organizational commitment focuses on people’s attitudes toward their organizations. There are three major types of organizational commitment. One is
- 751. continuance commitment— the strength of a person’s tendency to continue working for an organization because he or she has to and cannot afford to do otherwise. Another is affective commitment—the strength of a person’s tendency to continue working for an organization because he or Summary and Review of Learning Objectives 238 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION Points to Ponder Questions for Review 1. What are the three main components of attitudes? 2. What is job satisfaction; what are its major causes and the consequences of dissatisfaction? 3. What is organizational commitment; what are its major causes and the consequences of low levels of organizational commitment? 4. What steps can be taken to promote job satisfaction and organizational commitment? 5. What is the difference between prejudice and discrimination? 6. What steps are today’s organizations taking to promote diversity, and are these efforts effective? Experiential Questions
- 752. 1. Think of a particular job you have enjoyed most. What did you like about it so much? Now, think of a particu- lar job that you enjoyed least. What made you dislike it so much? Did the factors you liked fall into the “motivator” category of two-factor theory? Did the factors you disliked fall into the “hygiene” category of the two-factor theory? 2. Think about the particular organization at which you have worked the longest. What were the main reasons you stayed there? How do these compare to the three forms of organizational commitment described in this chapter? 3. If you have ever participated in a diversity management training program, what effects did it have on you? In what ways, if any, did your attitudes or behavior change? If you have never participated in a diversity management training program, how do you think you would react to being in one? Do you think you would find it enjoyable? Useful? What challenges to effectiveness, if any, do you suspect you might encounter? Questions to Analyze 1. One of the strategies that has been recommended for enhancing job satisfaction is to make jobs more fun. We all like having fun, of course, but do you really think this matters when it comes to job satisfaction? In other words, is job satisfaction promoted by just having a pleasant, joking atmosphere in the work- place? Or, is what really matters making the work itself more interesting and enjoyable to perform?
- 753. Explain your answer. 2. In today’s economy, where replacing employees can be an expensive proposition, it pays to be able to maintain a highly committed workforce. Of the vari- ous things that can be done to promote commitment to an organization, which tactics do you believe may be most effective? Explain the basis for your answer. 3. Racial prejudice has been a serious problem in American society for a long time. How do you reconcile this with the fact that diversity management training generally seems to be successful? In other words, do you think diversity training actually changes people’s prejudicial attitudes? Or, do you think that such pro- grams get people to change their behavior—at least long enough to allow different kinds of people to be accepted? Explain. Experiencing OB Individual Exercise How Satisfied Are You with Your Job? Questionnaires similar to this one are used to assess job satisfaction. Completing this questionnaire will help you appreciate the level of satisfaction you feel toward your own job. It also illustrates one of the most popular tools for measuring this important work- related attitude. she agrees with its goals and values, and desires to stay with it. A third is normative commitment—commitment to remain in an organization stemming from social obligations to do so. Low levels of organizational commitment have been
- 754. linked to high levels of absenteeism and voluntary turnover, the unwillingness to share and make sacrifices for the company, and negative personal consequences for employees. However, organizational commitment may be enhanced by enriching jobs, aligning the interests of employees with those of the company, and recruiting and selecting newcomers whose values closely match those of the organization. CHAPTER 6 • WORK-RELATED ATTITUDES: PREJUDICE, JOB SATISFACTION, AND ORGANIZATIONAL COMMITMENT 239 Directions Each of the following statements refers to a particular aspect of your job. In the space to the left of each, write the one number that reflects the extent to which you are satisfied or dissatisfied with this particular aspect of your present job. Express your answers using the following scale: 1 � very dissatisfied 2 � dissatisfied 3 � neither satisfied nor dissatisfied 4 � satisfied 5 � very satisfied 1. The opportunity to do things I find enjoyable.
- 755. 2. Being able to count on a steady paycheck. 3. The feeling that I’ve accomplished something important. 4. The environment or surroundings in which I work. 5. The people with whom I work most of the time. 6. Opportunities to advance to higher positions. 7. A chance to be responsible for my accomplishments. 8. The opportunity to do things that I find challenging. 9. A chance to learn interesting new skills. 10. Having a chance to socialize and have fun with people. Scoring and Interpretation 1. Add your scores for the 10 items. This will yield a number between 10 and 50. 2. Higher scores reflect higher degrees of job satisfaction. Questions for Discussion 1. What did this questionnaire reveal about your level of job satisfaction? Were you surprised at what it suggested, or did it tell you something you already knew? 2. Although this questionnaire includes only 10 items, statements about other aspects of the job might have been added to the list. Thinking about other aspects of the job that may be particularly important to you, what might some of these items be? If such items were included, how might your score have been affected? 3. To what extent do you believe that your score on this questionnaire is likely to change as you move into new positions over the years? Do you expect it to become higher or lower in the future? Why?
- 756. Group Exercise Stereotyping and Being Stereotyped: Comparing Experiences You’ve probably been a victim of stereotyping by others, undoubtedly more often than you’d like. At the same time, you may have engaged in stereotyping others, even if you’re not especially proud of it. This exercise is designed to make you sensitive to these processes so that hopefully you’ll think twice before stereotyping anyone in the future. Directions 1. Divide the class into pairs of students. 2. One student in each pair should recall a time in which he or she was stereotyped by someone else. To keep the facts straight, describe what occurred in a few lines. Also describe how this made you feel. Spend about 5 to 10 minutes on this. 3. At the same time, the other student in each pair should recall a time in which he or she engaged in stereotyping someone else. To keep the facts straight, describe what you did in a few lines. Also describe what led you to do this. 4. The members of each pair should take turns describing their experiences as “stereotypers” or victims of stereotyping. Be sure to explain your reactions (if you were a stereotype victim) or the things that led you to engage in stereotyping (if you were a stereotyper). Take about 5 to 10 minutes on this process.
- 757. 240 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION C as e in P oi n t Practicing OB “I Quit!” The president of a small manufacturing firm comes to you with a problem: The company is spending a lot of money training new employees, but 75 percent of them quit after working less than a year. Worse, they take jobs at the company’s biggest competitor. Answer the follow- ing questions relevant to this situation based on the mate- rial in this chapter. 1. Drawing on research and theory on job satisfaction, what would you suspect is the cause of the turnover? What advice can you offer about how to eliminate the problem? 2. Drawing on research and theory on organizational commitment, what would you suspect is the cause of the turnover? What advice can you offer about how to eliminate the problem?
- 758. 3. Suppose you find out that the greatest levels of dissatis- faction exist among employees belonging to minority groups. What would you recommend doing to eliminate the prejudice that may be responsible for the turnover? ■ Domino’s Pizza Takes a Bite Out of Turnover N ine million miles—that’s how far you’d travel if you went to the moon 37 times. Coincidentally, that’s also how far Domino’s Pizza delivery drivers travel each week in more than 60 countries. The 170,000 employees who work in the 8,800 stores in these nations get 1.3 million pizzas out the door each day. And they’ve been doing this every day since 1960, when the brothers, Tom and James Monaghan, bought their first small pizzeria in Ypsilanti, Michigan. The recipe for keeping these employees working happily at their jobs is something the company takes as seriously as its pizza recipe. And just as Domino’s totally redesigned its pizzas “from the crust up” in 2010 to keep customers com- ing back for more, it also has been rethinking its approach to employees to keep them coming back to work. This is no minor concern for Domino’s Pizza, consider- ing that annual turnover within stores has been more than 150 percent, resulting in an entirely new crew about every nine months. Although these figures are lower than the industry average for fast food, the fact that it costs upward of $2,500 to replace an entry-level worker (and 10 times more for a manager) was enough to make boosting employee retention a priority for the Domino’s corporate management team in Ann Arbor. In 2005, under the leadership of David Brandon, Domino’s launched several initiatives to tackle the turnover prob- lem, which continued when Patrick Doyle assumed the
- 759. CEO post in 2010. Brandon’s approach was straightforward. Because employees tended to leave when managers resigned, he focused primarily on managers. Unlike some other CEOs fac- ing the same problem in their companies, he opted not to buy his managers’ loyalty by raising their pay. He believed that would have only a small and temporary effect on reten- tion. Instead, he initiated a three-prong approach, beginning by hiring better managers. With this in mind, Domino’s offi- cials worked with researchers to develop an online test to select managers who had adequate levels of financial know- how and whose management styles were appropriate for the company. Once managers were selected, they were trained thoroughly in ways of effectively recruiting employ- ees and interviewing them so as to ensure their success. The second focus of the retention effort involved giving store managers tools to assess how well their employees are performing. This consisted of computerized tracking sys- tems that enable them to learn precisely how long the pizza production process is taking and to identify star performers as well as those who need additional help. Third, although Brandon is not a fan of across- the-board pay increases, he believes firmly in creating Questions for Discussion 1. How did the other person’s experiences as a victim or stereotyper compare to your own experiences in these roles? 2. Thinking about the experiences shared in this exercise, what factors associated with an organization may have led to the willingness to stereotype or to
- 760. the reactions experienced as a victim of stereotyping? Did something about the company or its people make things better or worse? What are these factors? 3. Did this exercise make you any more sensitive to the costs of stereotyping? Do you think it will make a difference, at least for a little while? (Continued ) CHAPTER 6 • WORK-RELATED ATTITUDES: PREJUDICE, JOB SATISFACTION, AND ORGANIZATIONAL COMMITMENT 241 incentives for managers that reward them for outstand- ing performance. This led to a system of bonuses based on store profits in addition to stock options for managers whose store sales grew while also creating highly satis- fied customers. The effect was to align the financial interests of the managers with those of the company. Since these efforts were put in place, turnover at Domino’s Pizza has been cut in half—a vast improvement whose impact has been felt on the bottom line. And in an era of crust-thin margins, such developments are welcomed for sure. Questions for Discussion 1. Of the three initiatives put into place to boost reten- tion, which one do you believe will prove to be most effective? Why? 2. Based on the material in this chapter, what else could
- 761. Domino’s Pizza do to reduce its turnover problem? 3. How might making an effort to promote job satisfac- tion contribute to reducing turnover? As a manager of a Domino’s store, what exactly could you do to help in this way? Chapter Outline � Motivation in Organizations: Its Basic Nature � Motivating by Enhancing Fit with an Organization � Motivating by Setting Goals � Motivating by Being Equitable � Motivating by Altering Expectations � Motivating by Structuring Jobs to Make Them Interesting Learning Objectives After reading this chapter, you should be able to: 1. Define motivation and explain its importance in the field of organizational behavior. 2. Describe the motivational-fit approach and what it suggests about how to improve motivation in organizations. 3. Identify and explain the conditions through which goal setting can be used to improve job
- 762. performance. 4. Describe equity theory and explain how it may be applied to motivating people in organizations. 5. Describe expectancy theory and how it may be applied in organizations. 6. Distinguish among job enlargement, job enrichment and the job characteristics model as techniques for motivating employees. 242 7CHAPTE R Motivation in Organizations CHAPTER 7 • MOTIVATION IN ORGANIZATIONS 243 Preview Case ■ PAC Engineering: Employee Motivation, Different Priorities for Different Territories PAC Engineering is a building construction contractorheadquartered in Lebanon. In 2010 the company’s headcount surpassed 10,000 employees (engineers and laborers alike) with an impressive list of multimillion-dollar projects. PAC Engineering currently has a number of ongo- ing projects in several Middle Eastern countries, such as
- 763. Lebanon, Qatar, United Arab Emirates (Dubai and Abu Dhabi), Saudi Arabia, Kuwait, Egypt, Sudan, and Libya. In the early 1990s, when the company was first established, Lebanon was emerging from a devastating 15-year civil war, and demand for construction and real estate development was about to witness an unprece- dented increase. By 1995, PAC Engineering had estab- lished itself as a leading contractor in Lebanon, compet- ing with the big players in the industry. During its domestic growth phase, the company had no difficulty in attracting, motivating, and retain- ing engineers because the labor market in Lebanon was flooded with a constant supply of well-educated engi- neers who had graduated from the country’s top univer- sities by hundreds. Although most of these graduates would end up working in the oil-rich Gulf countries, for many ensuring a job in Lebanon was a better choice. The late 1990s presented the company with a differ- ent set of challenges. Construction in Lebanon was at a standstill, but the company was able to compensate for the diminishing local projects with an aggressive regional expansion in places such as Dubai. In Dubai, however, PAC Engineering was losing a number of its mid- and high-level executives and engi- neers to bigger and much stronger regional players who snatched engineers by offering them salaries way above the industry’s pay levels. The CEO of PAC Engineering and its top management could not determine the rea- sons for this increase in turnover. PAC Engineering had always been considered an employer of choice for engi- neers in Lebanon. The company was envied for the moti-
- 764. vation and dedication of its engineers. Because special situations require special action, the CEO of PAC Engineering hired a human resources con- sulting firm to diagnose the problem. The results were swift and surprising. PAC Engineering’s motivation strat- egy in Lebanon was focused on supplying engineers to work for a reputable company in Lebanon. Thus, engi- neers did not have to travel abroad to work and leave their families behind. This proximity to their hometowns and the possibility of being with their families was a big motivating factor that sometimes compensated for the average financial pay and benefits. However, when the company started sending these engineers to handle projects in Dubai, the “home advan- tage” was lost, and engineers found themselves in a situ- ation where it was tough for them not to compare their financial packages to those of engineers in other compa- nies in Dubai. The implications of equity theory seemed to have taken their toll on PAC Engineering. To correct the situation, the human resources firm hired by PAC Engineering had to redesign the company’s financial packages, introducing for the first time in Lebanon a “partnership scheme” for its high-level execu- tives and engineers. Soon after the new plans were announced, engineers’ turnover rates were back to indus- try levels, and PAC Engineering was able to redefine itself as an employer of choice within the construction industry. The crucial role that employee motivation plays in the success of a company is one of the rare instances of agreement among OB scholars. As this case suggests, however, what motivates employees in one situation may have neutral—or even
- 765. negative—effects in others. Differences may also be found between financial and nonfinancial factors. Financial rewards for PAC engineers working in Lebanon became less motivational when those workers were assigned to projects in Dubai, where financial rewards came to the forefront. It’s obvious that we certainly like these things, but do they really stimulate people into action? And if so, why? In other words, what psychological mechanisms explain what gets people to work hard? We will focus on the answer to these important questions in this chapter. And in keeping with the simultaneously theoretical and applied orientation of the field of OB, we also will consider how managers can put this information to practical use in attempting to motivate their employees. Over the years, the question of what it takes to motivate workers has received a great deal of attention by organizational scientists and practicing managers.1 In addressing this matter, we exam- ine five different approaches that have been popular in the field of OB. Specifically, these focus on motivating by (1) fitting people’s traits and skills with the nature of their work, (2) setting goals, 244 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION (3) treating people equitably, (4) enhancing people’s beliefs that desired rewards can be attained, and (5) designing jobs so as to make them more desirable. We will
- 766. describe each of these approaches to motivation in this chapter, highlighting the research bearing on it and its practical implications. Our discussion of these approaches to motivation will give you a sound understanding of how to answer a key question that’s on the mind of a lot of managers these days: How can I motivate my employees? As you will see, the answer isn’t exactly straightforward. Of course, if motivating people were easy, everyone would be doing it. At the same time, however, it is far from impossible. Costco and a good number of other organizations have leaders that demonstrate a firm understand- ing of the principles described within this chapter. Before getting to all this, however, it’s important to touch briefly on a fundamental matter—namely, what exactly is meant by motivation. Motivation in Organizations: Its Basic Nature Although motivation is a broad and complex concept, organizational scientists have agreed on its basic characteristics.2 We define motivation as the set of processes that arouse, direct, and maintain human behavior toward attaining some goal. The diagram in Figure 7.1 will guide our explanation as we elaborate on this definition. Components of Motivation The first part of our definition deals with arousal. This has to do with the drive or energy behind our actions. For example, people may be guided by their interest in making a good impression on others, doing interesting work, being successful at what they do, and so on. This motivates people to do what it takes to accomplish these objectives.
- 767. But how will people go about satisfying their motives? Motivation is also concerned with the choices people make, the direction their behavior takes. For example, employees interested in cultivating a favorable impression on their supervisors may do many different things: compliment them on their good work, do them special favors, work extra hard on an important project, and the like. Each of these options may be recognized as a path toward meeting the person’s goal. The final part of our definition deals with maintaining behavior. How long will people persist at attempting to meet their goals? To give up in advance of goal attainment means not satisfying the need that stimulated behavior in the first place. Obviously, people who do not persist at meeting their goals (e.g., salespeople who give up before reaching their quotas) cannot be said to be highly motivated. To summarize, motivation requires all three components: the arousal, direction, and mainte- nance of goal-directed behavior. An analogy may help tie these components together. Imagine that you are driving down a road on your way home. The arousal part of motivation is like the energy created by the car’s engine. The direction component is like the steering wheel, taking motivation The set of processes that arouse, direct, and maintain human behavior toward attaining some goal.
- 768. Arousal Direction Maintenance Goal Work late Persist Persist Sales quota met Persist Make extra calls Study product line I want to meet my sales quota FIGURE 7.1 Basic Components of Motivation Motivation involves the arousal, direction, and maintenance of behavior toward a goal. CHAPTER 7 • MOTIVATION IN ORGANIZATIONS 245 you along your chosen path. Finally, the maintenance aspect of
- 769. the definition is the persistence that keeps you going until you arrive home, reaching your goal. In both cases, any one missing part will keep you from getting where you want to go. Three Key Points About Motivation Now that we have defined motivation, we should note three important points you should keep in mind as you think about motivation on the job. MOTIVATION AND JOB PERFORMANCE ARE NOT SYNONYMOUS. Just because someone performs a task well does not mean that he or she is highly motivated. Motivation is just one of several possible determinants of job performance. The person who performs well may be very skillful but not put forth much effort at all. If you’re a mathematical genius, for example, you may breeze through your calculus class without trying. By contrast, someone who performs poorly may put forth a great deal of effort but fall short of a desired goal because he or she lacks the skills needed to succeed. If you’ve ever tried to learn a new sport but found that you couldn’t get the hang of it no matter how hard you tried, you know what we mean. MOTIVATION IS MULTIFACETED. People are likely to have several different motives operating at once. Sometimes, these conflict with one another. For example, a word processing operator might be motivated to please her boss by being as productive as possible. However, being too productive may antagonize her coworkers, who fear that they’re being made to look bad. The result is that the two motives may pull the individual in
- 770. different directions, and the one that wins is the one that’s stronger in that situation. PEOPLE ARE MOTIVATED BY MORE THAN JUST MONEY. Suppose you struck it big in the lottery. Would you keep your current job? Interestingly, although some make it clear that they would pack up and move to a tropical island where they would relax in the sun for the rest of their lives, most insist that they would continue to work. They might take a different job, but they’d continue to work even if they didn’t need the money. Why? The answer is simple: Money isn’t people’s only motive for working. This raises two interesting questions: (1) What is, in fact, the top motivator, and (2) Where is money on the list? Different research teams have sought answers in recent years. One group of researchers surveyed lower- and mid-level employees.3 Another research team examined junior and senior executives.4 Both surveys asked respondents from a variety of companies in different industries to consider the importance of a large number of possible motives. The rankings of the top factors for each group are shown in Table 7.1. Despite some minor differences in orderings, the top four responses of both groups were remarkably similar. The top two factors for both groups were “doing challenging work” and “having a supportive, team-oriented atmosphere.” Money came in consistently below these TABLE 7.1 What Motivates People to Work?
- 771. Pay, although important, is not at the very top of the list of the most important sources of work motivation in people’s lives. This applies to both lower- to mid-level employees and to junior and senior executives. Factor Lower- to Mid-Level Employees Junior and Senior Executives Challenging work 1 2 Supportive, team-oriented environment 2 1 Adequate compensation 3 4 Opportunities for promotion, achievement 4 6 Fit between life on and off the job — 3 Incentives to succeed 5 — Working at a company that has high values — 5 Peer group respect 6 — Sources: Robson, 2004; see Note 3; Gallinsky et al., 2009; see Note 4. 246 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION
- 772. factors, ranking third among mid-lower-level employees and fourth among executives. As you will see in the rest of this chapter, the field of OB examines a variety of factors that motivate people—those indicated here as well as many others. Having established these basic qualities of motivation, we now turn to the first of five different orientations to motivation discussed in this chapter. This particular approach, which focuses on motivating by enhancing fit with an organization, casts an interesting light on some issues we already have considered in this book. Motivating by Enhancing Fit with an Organization Imagine yourself in the following situation. You started a new job as a salesperson at an auto dealership. After a little while, however, you find that it’s not really your thing. You’re not the type of person to push someone into a sale, and as customers walk away, your self-confidence erodes. Realizing this about yourself makes you feel anxious as you approach a prospect on the floor or as you try to close a sale. And this, of course, interferes with your capacity to succeed. In turn, this lowers your motivation to work (“why even bother?”), further interfering with your performance, lowering your motivation, and so on. The downward cycle is spiraling you right out of the showroom and into a new job. Because your particular qualities are a poor match with the requirements of the job, your motivation and performance suffer. In Chapter 4, we noted that many different personality traits and abilities influence job
- 773. performance. In the context of motivation, however, scientists have found that a few particular traits and skills have especially profound effects. This is the basic idea behind a relatively new way of looking at motivation known as the motivational fit approach.5 Specifically, this frame- work stipulates that motivation is based on the connection between qualities of individuals and requirements of the jobs they perform in their organizations. The better people’s traits and skills fit the requirements of the work environment, the more highly motivated they will be (for an overview, see Figure 7.2). We now will explain the motivational fit approach in more detail and describe its implications for motivating people on the job. motivational fit approach The framework stipulating that motivation is enhanced by a good fit between the traits and skills of individu- als and the requirements of the jobs they perform in their organizations. Emotion controlAchievement Anxiety Motivation control PERSON (selected or trained)
- 774. ORGANIZATION Motivational Traits Motivational Skills Motivational Fit Requirements of the Job FIGURE 7.2 The Motivational Fit Approach: An Overview According to the motivational fit approach, people are most highly motivated to perform when there is a good fit between various traits and skills they possess and certain important characteristics of the work they perform. These are summarized here. Source: Based on suggestions by Kanfer & Heggestad, 1997; see Note 5.
- 775. CHAPTER 7 • MOTIVATION IN ORGANIZATIONS 247 Motivational Traits and Skills The motivational fit approach specifies that two particular individual characteristics, referred to as motivational traits, are important. These are as follows: � Achievement: a person’s interests in excelling at what he or she does and in accomplishing desired objectives � Anxiety: a person’s tendency to be excessively apprehensive or nervous about things in everyday life Because achievement and anxiety are considered traits, they are assumed to be relatively stable differences between people (see Chapter 4), making some individuals more successful than others. As it works out, the most highly motivated employees tend to be those characterized by high levels of achievement and low levels of anxiety. Such individuals not only are inclined to strive for excel- lence, but they also lack the emotional problems associated with being excessively worried. In addition to the traits they possess, an individual’s motivation also is determined by what are known as motivational skills—the particular strategies used when attempting to meet objec- tives. Unlike traits, which are relatively stable within individuals over time, people can be trained in skills, and these also develop naturally over time as people gain experience over their careers (see Appendix 2). Two particular motivational skills are important:
- 776. � Emotion control: a person’s capacity to control his or her own emotions and to stay focused on the task at hand without allowing emotions to interfere � Motivation control: a person’s capacity to push himself or herself by directing attention to the job and to continue exerting effort even when his or her interest begins to wane As you might expect, employees with highly developed motivational skills are not only more strongly motivated to succeed but ultimately also more successful on their jobs than those with less developed motivational skills. Specifically, individuals with high levels of emotional control are more successful than those with low levels of emotional control. Also, those with high levels of motivation control are more successful than those with low levels of motivation control. This is probably not surprising, given that individuals with high levels of these skills are adept at over- coming key problems such as boredom and the frustration that inevitably occurs at work. Importantly, because these are skills rather than traits, anyone is capable of developing them. People’s motivational traits and skills do not operate independently. Rather, traits influence skills. Consider, for example, someone with high amounts of the achievement trait. Such an individual is particularly likely to seek out challenging situations. And, because such situations present considerable opportunities for failure, the person has to learn to overcome the negative
- 777. emotional reactions that are likely to result (emotion control) and is likely to be driven to continue even in the face of obstacles (motivation control). By contrast, because individuals who are low in the achievement trait are inclined to avoid challenging situations, they are unlikely to face situations that allow them to develop motivational skills. Organizational Factors: Enhancing Motivational Fit Recognizing that people do not operate in a vacuum, the motivational fit approach specifies that it is important for people’s motivational traits and skills to match the requirements of their work environments. Although this idea is admittedly abstract, we already provided a good illustration. Recall your unsuccessful attempt to make it as an auto salesperson? Given the nature of the work, it’s understandable that you would be a bad fit with the organization. Fortunately, however, there’s hope for you yet. Fit can be enhanced in two ways. First, the deal- ership can prescreen job applicants in a manner that keeps individuals with your particular profile out of such positions. This would save you, the company, and some unsuspecting customers a lot of grief. Indeed, research has shown that motivational fit is enhanced when people’s characteristics match the unique requirements of the positions they seek.6 Second, the company can improve motivational fit by training people in ways of building their motivational skills. Although this might not come to you naturally at this time, becoming more of the way you have to be to perform the job is not out of the question. It involves learning a new skill (which we
- 778. discussed in Chapter 3), and you surely are capable of doing so. This may take the form, for example, of training you in building self-confidence so you can avoid the self-doubts that interfere with your motivation to perform this job. 248 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION Another organizational factor with which people’s motivational traits and skills must fit has to do with the inherent nature of the job. On some jobs, such as research scientist, success requires the capacity to work independently, to innovate, and to persist when attempting to solve difficult problems. The individuals most highly motivated to pursue positions of this type are those with high amounts of achievement and strong motivational skills (see Figure 7.3). By contrast, among people performing more routine jobs, such as factory worker or call center operator, such characteristics are not as likely to contribute to motivation. After all, the highly structured nature of these jobs is likely to make these traits and skills less important. Please note that “less important” does not mean “unimportant.” Indeed, even among call center operators, motivational fit has been identified as a key to productivity.7 Because the motivational fit approach is new, it has not received as much research attention as the other frameworks described in this chapter. However, existing research has been highly supportive.8 As a result, it already has been acknowledged as an important and especially prom-
- 779. ising way of understanding motivation on the job.9 Motivating by Setting Goals Just as people are motivated to satisfy their needs on the job and to fit with their organizations, they also are motivated by another very basic interest—to strive for, and to attain, goals—a process known as goal setting. The process of setting goals is one of the most important motivational forces operating on people in organizations.10 With this in mind, we will describe the underlying psychological processes that make goal setting effective and identify some practical suggestions for setting goals on the job. Goal-Setting Theory Suppose that you are doing a task, such as word processing, when a performance goal is assigned. You are now expected to type 70 words per minute instead of the 60 words per minute you’ve been keyboarding all along. Would you work hard to meet this goal, or would you simply give up? goal setting The process of determining specific levels of perfor- mance for workers to attain and then striving to attain them. FIGURE 7.3 High Motivational Fit: A Chilly Example UCLA research scientist David Saltzberg has been working on a project designed to detect high-energy neutrinos produced by collisions between cosmic rays and
- 780. photons in the universe. This led Dr. Saltzberg to Cape Evans, Antarctica, where he placed sensors in holes in the ice, a job that requires him to be highly innovative, often in the face of frustrating setbacks (not to mention frigid conditions). He is likely to be highly motivated to perform well because he is very interested in achieving success and has the capacity to push himself hard to attain it. D r. D av id S al tz be rg . CHAPTER 7 • MOTIVATION IN ORGANIZATIONS 249 Some insight into the question of how people respond to assigned goals is provided by a popular theory known as goal-setting theory.11 This approach claims that an assigned goal influences people’s beliefs about being able to perform the task in question (i.e., a personality variable known
- 781. as self-efficacy) and their personal goals. Both of these factors, in turn, influence performance. The basic idea behind goal-setting theory is that a goal serves as a motivator for three key reasons. First, when goals are set, people direct their attention to them and gauge how well they are doing. In other words, they compare their current capacity to perform with that required to succeed at the goal. To the extent that people believe they will fall short of a goal, they will feel dissatisfied and will work harder to attain it so long as they believe it is possible for them to do so. When they succeed at meeting a goal, they feel competent and successful.12 Having a goal enhances performance in large part because the goal makes clear exactly what type and level of performance is expected (see Figure 7.4). Second, goal-setting theory also claims that assigned goals will lead to the acceptance of those goals as personal goals.13 In other words, they will be accepted as one’s own. This is the idea of goal commitment—the extent to which people invest themselves in meeting a goal. Indeed, people become more committed to a goal to the extent that they desire to attain it and believe they have a reasonable chance of doing so. Likewise, the more strongly people believe they are capable of meeting a goal, the more strongly they will accept it as their own. By contrast, workers who perceive themselves as incapable of meeting goals will not be committed to meeting them, and as a result, will not strive to do so. Finally, goal-setting theory claims that beliefs about both self-
- 782. efficacy and goal commitment influence task performance. After all, people are willing to exert greater effort when they believe they will succeed than when they believe their efforts will be in vain.14 Moreover, goals that are not personally accepted will have little capacity to guide behavior. In fact, the more strongly people are committed to meeting goals, the better they perform.15 Although this sounds fairly abstract, the ideas are really quite straightforward and they will come to life with an illustration. Let’s use an example of a situation with which college students easily can relate. Suppose you don’t care about getting good grades in school (i.e., you are not committed to achieving academic success). In this case, you would not work very hard regardless of how easy or difficult a course may be. By contrast, if you are highly committed to achieving success, then a difficult (but not impossible) goal (e.g., getting a good grade in a very challenging goal-setting theory A popular theory specifying that people are motivated to attain goals because doing so makes them feel successful. self-efficacy One’s belief about having the capacity to perform a task. goal commitment
- 783. The degree to which people accept and strive to attain goals. Goal commitment (accept goal as own) Self-efficacy beliefs Desire to attain goal Perceived chance of attaining goal Desire to feel competent Performance at goal level Recognize challenge of higher goal level FIGURE 7.4 The Goal-Setting Process When people are challenged to meet higher goals, several things happen. First, they assess their desire to attain the goal as well as their chances of attaining the goal. Together, these judgments affect their goal commitment. Second, they assess the extent to which meeting the goal will enhance their beliefs in their own self-efficacy. When levels of goal commitment and self- efficacy are high, people are motivated to perform at the goal level. 250 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION
- 784. course) will have more meaning to you than an easy goal (e.g., getting a good grade in an easy course) because it enhances your self-efficacy. As a result, you will work harder to achieve it. Goal-setting theory has been supported by research conducted over 40 years, suggesting that it is a valuable source of insight into how the goal-setting process works.16 In fact, goal-setting theory is so highly regarded that it has been ranked as the most influential of all OB theories by management scholars.17 One team of scientists even referred to goal-setting theory as being “quite easily the single most dominant theory in the field [of organizational behavior].”18 Let’s now examine what this theory suggests about the most effective way to set goals. Guidelines for Setting Effective Performance Goals Because researchers have been involved actively in studying the goal-setting process for many years, it is possible to summarize their findings in the form of principles. These may be taken as practical suggestions for managers to consider when attempting to enhance motivation. ASSIGN SPECIFIC GOALS. Probably the best-established finding of research on goal setting is that people perform at higher levels when asked to meet a specific high-performance goal than when simply asked to “do your best,” or when no goal at all is assigned. Generally, people find specific goals quite challenging and are motivated to meet them—not only to fulfill others’ expectations but also to convince themselves that they have performed well.
- 785. A classic study conducted at an Oklahoma lumber camp provides a particularly dramatic demonstration of this principle.19 The participants in this research were lumber camp crews who hauled logs from forests to their company’s nearby sawmill. Over a three-month period before the study began, it was found that the crew loaded trucks to only about 60 percent of their legal capaci- ties, wasting trips that cost the company money. Then a specific goal was set, challenging the loggers to load the trucks to 94 percent of their capacity before returning to the mill. How effective was this goal in raising performance? The results, summarized in Figure 7.5, show that the goal was 100 90 Goal level 80 70 60 50 1 2 3 4 5 6 7 8 9 10 11 12 Before goal
- 786. After goal Seven years later Four-Week Periods Pe rc en ta ge o f M ax im um W ei gh t Ca rr ie d on
- 787. E ac h Tr ip There was a dramatic improvement in performance after a goal was set Performance at the goal level was sustained seven years after the goal was first set FIGURE 7.5 Goal Setting: Some Impressive Effects The performance of loggers loading timber onto trucks markedly improved after a specific, difficult goal was set. The percentage of the maximum possible weight loaded onto the trucks rose from approximately 60 percent before any goal was set to approximately 94 percent—the goal level—after the goal was set. Performance remained at this level as long as seven years. Source: Adapted from Latham & Baldes, 1975; see Note 19. CHAPTER 7 • MOTIVATION IN ORGANIZATIONS 251 extremely effective. Not only was the specific goal effective in raising performance to the goal level
- 788. after just a few weeks, but these effects were also long-lasting: Loggers sustained this level of per- formance throughout the next seven years. The resulting savings for the company were considerable. This is just one of many studies that clearly demonstrate the effectiveness of setting specific performance goals. Research also has found that specific goals help bring about other desirable organizational objectives, such as reducing absenteeism and industrial accidents.20 To reap such benefits, however, goals must be not only highly specific, but also challenging. ASSIGN DIFFICULT, BUT ACCEPTABLE, PERFORMANCE GOALS. The goal set at the logging camp was successful not only because it was specific, but also because it pushed crew members to a higher standard. Obviously, a goal that is too easily attained will not bring about the desired increments in performance. For example, if you already type at 70 words per minute, the goal of 60 words per minute—although specific—would likely lower your performance because it is too easy (for some additional examples, albeit highly unlikely ones, see Figure 7.6). The key point is that a goal must be difficult as well as specific for it to raise performance. It is interesting to consider why this occurs. The loggers were not paid any more for meeting the goal than for missing it. Still, they worked hard to meet it. Why? The answer is that the goal instilled purpose and meaning to the otherwise monotonous task of loading trucks. Loggers who met the goal took pride in doing so and found the task more
- 789. interesting as a result. In fact, the challenge of meeting the goal made the job so much more fascinating that within a week after it was set, the loggers showed great improvements in attendance.21 Importantly, there is a limit to this effect. Although people will work hard to reach challenging goals, they only will do so when the goals fall within the limits of their capability. As goals become too difficult, performance suffers because people reject the goals as unrealistic and unattainable.22 Let’s consider an example to which you can relate as a student. You may work much harder in a class that challenges your ability than one that is very easy. At the same time, however, you probably FIGURE 7.6 Some Goals Are Just Too Easy Goals that can be attained very easily are not especially challenging and won’t motivate people to work very hard. You probably wouldn’t feel that you’ve accomplished much by reaching the goals shown here. © R oz
- 791. om . 252 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION would give up trying if you had to get a perfect score on all exams to pass the course—a standard you would reject as unacceptable. The underlying principle applies in most situations. Specific goals are most effective if they are set high enough to challenge people, but not so high as to be rejected. This principle is applied in many organizations, where goals are set with respect to many important criteria. Consider these varied examples: � The Web site for the blogging community, YouSayToo.com, set the goal of raising $30,000 to aid the relief effort for victims of 2010’s massive earthquake in Haiti.23 � Bell Canada’s telephone operators are required to handle calls within 23 seconds, and FedEx’s customer service agents are expected to answer customers’ questions within 140 seconds.24 � The Dietetic Internship Program of the U.S. Department of Veterans Affairs in Bay Pines, Virginia, set the following goals: 90 percent of the people starting the program will finish it, and 90 percent of those completing the program will “agree” or “strongly agree” on the Program Evaluation form that the program prepared them for
- 792. dietetic practice.25 � In 2009, Idaho’s Coeur d’Alene Mines, set the “aggressive” goal of boosting production levels by 66 percent in its two newest silver mines.26 Despite the differences in these goals and the nature of the companies in which they were established, they have something in common. In all cases, the goals were considered difficult when first imposed, but the people involved eventually met—or even exceeded—them over time. They were likely to enjoy the satisfaction of knowing they succeeded at doing so. Sometimes, the difficult goals set by companies are so far beyond levels currently being achieved that employees lack a clear idea how to go about reaching them. Such goals are known as stretch goals. By their very nature, stretch goals are so difficult that they challenge people to rethink the way they work, thereby establishing unprecedented levels of performance. General Electric’s former CEO, Jack Welch, regularly used stretch goals at his company to help it achieve vast improvements in quality and efficiency.27 In describing them to his colleagues, Welch likened stretch goals to the bullet trains in Japan, which run at about 200 mph. Had engineers sought only modest speed improvements, they would have limited their thinking in ways leading to minor alterations in design. However, by specifying previously unheard of speeds, engineers were challenged to think completely differently—and therefore to achieve amazing results. Stretch goals
- 793. of this type, in which higher levels of current activities are aggressively pursued (e.g., more speed, more profit, etc.), are known as vertical stretch goals. Some companies also use stretch goals for other purposes. At the investment firm Goldman Sachs, for example, stretch goals are used to aid professional development, such as by challenging managers to perform tasks that they never have done before. According to the firm’s head of Global Investment Reach, Steve Strongin, “Our people thrive on change, stretch goals and tough circumstances.”28 Efforts of this type are known as horizontal stretch goals. Such initiatives help develop the company’s most talented employees so they can be as successful as possible in many different ways. Not only do horizontal stretch goals make employees’ jobs more interesting, but they also make them more valuable assets to the company. For a summary comparison of vertical and horizontal stretch goals, see Table 7.2. stretch goals Goals that are so difficult that they challenge people to rethink the way they work. vertical stretch goals Stretch goals that challenge people to achieve higher levels of success in current activities. horizontal stretch goals
- 794. Stretch goals that challenge people to perform tasks that they have never done. TABLE 7.2 Two Types of Stretch Goals Goals that extend performance far beyond present levels, known as stretch goals, take two distinct forms— vertical stretch goals and horizontal stretch goals. The major differences between them are summarized here. Vertical Stretch Goals Horizontal Stretch Goals Description Aggressive goals aligned with current activities Goals that require significant new responsibilities Purpose To improve individual and/or organizational effectiveness To improve the development of professional skills among individuals Example Instead of working to boost annual sales by 10% as usual, strive to raise sales by 50% An engineer is asked to lead a sales team in an effort to attain unheard of levels of sales performance Source: Based on information in Kerr & Landauer, 2004; see Note 27.
- 795. CHAPTER 7 • MOTIVATION IN ORGANIZATIONS 253 As you read this, you may be wondering how goals should be set in a manner that strengthens employees’ commitment to them. One obvious way of enhancing goal acceptance is to involve employees in the goal-setting process. Research on workers’ participation in goal setting has demonstrated that people better accept goals that they have been involved in setting than goals that have been assigned by their supervisors—and they work harder as a result.29 In other words, participation in the goal-setting process tends to enhance goal commitment. Not only does participation help people better understand and appreciate goals they had a hand in setting, but it also helps ensure that the goals set are not unreasonable. PROVIDE FEEDBACK ON GOAL ATTAINMENT. The final principle of goal setting appears to be glaringly obvious, although in practice it is often not followed: Feedback helps people attain their performance goals. Just as golfers interested in improving their swings need feedback about where their balls are going, so do workers need feedback about how closely they are approaching their performance goals. In both instances, the feedback helps in two important ways. First, it helps people determine how well they are doing, which potentially enhances their feelings of self-efficacy. Second, feedback also helps people determine the nature of the adjustments to their performance that are required to improve (e.g., adjusting the grip on a golf club to avoid
- 796. “hooking” or “slicing” the ball down the fairway). The importance of using feedback in conjunction with goal setting has been demonstrated in a study of pizza delivery drivers.30 These individuals have a critical mission: to deliver their customers’ pizzas quickly. But, of course, they must do so safely and in compliance with all traf- fic laws. All too often, however, in the interest of keeping their pizzas hot, some delivery people’s driving styles are even hotter (and saucier). To speed up delivery, for example, some have been known to fail to come to complete stops at intersections. To curb this behavior, officials of pizza shops in two different towns participated in a study in which their deliverers’ driving behavior was observed systematically over a nine-month period. Trained observers who were hidden from view of the drivers recorded various aspects of the deliverers’ driving behavior during prime-time hours—in particular, the percentage of time they came to complete stops at intersections. Over a six-week period, drivers from both locations were found to come to complete stops, on average, just under half the time. Because this was unacceptable, the drivers in one location, the experimental group, were asked to come to a com- plete stop 75 percent of the time. And, over a four-week period, they were given regular feedback on how successfully they met this goal. Drivers in the control group were not asked to meet any goals and were not given any feedback on their driving. Following this feedback period, drivers in the experimental group were asked to maintain the 75 percent goal, but stopped getting
- 797. feedback. Observations of their driving behavior, and that of control group drivers, continued during this six-month period. How did the drivers do? The results of the study, summarized in Figure 7.7, show that goal setting in conjunction with feedback was highly successful. Specifically, it led drivers to come very close to the assigned goal of coming to a complete stop at intersections three-quarters of the time. However, once that feedback was withdrawn, drivers returned to stopping only half the time—as often as they did before the study began (and as often as drivers in the control group, who received neither goals nor feedback). These findings clearly demonstrate the importance of accompanying specific, difficult goals with clear feedback about the extent to which those goals are being met. Not giving feedback on performance relative to goals forces workers to do their jobs blindly. Providing feedback, however, shines a spotlight on task performance that is essential to success. When it comes to pizza delivery drivers, the ways of measuring performance are relatively straightforward. However, this is not usually the case among individuals who have more complex jobs with responsibilities over others, such as managers. Although it is more challenging to set, assess, and give feedback on goals for managerial performance, the same basic rules that we have been describing apply as well. To illustrate this, let’s consider how the goal-setting process is used among managers at Microsoft.31 Although the company refers to goals as
- 798. “commitments” (which makes sense, since one must commit to meeting a goal) and goal setting as “commitment setting,” the process is the same. First, managers and their supervisors meet to determine specific goals to meet—ones in keeping with the company’s objectives. Second, a specific plan is put in place for each of those 254 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION 80 70 60 50 40 (48.7) (49.7) (49.0) (67.2) (46.6) (47.6) 30 6-week
- 799. baseline period 4 weeks with goal set and feedback given Goal Control (no goal) 10-week observation period; goal maintained but no feedback given . . . 13 weeks later . . . 75% goal Pe rc en ta ge o f Ti m e Dr iv
- 801. drivers come very close to the goal . . . but the goal was no longer sought after feedback was withdrawn. FIGURE 7.7 Feedback: An Essential Element of Goal Setting Pizza delivery drivers came very close to reaching a goal— coming to a complete stop at intersections 75 percent of the time—during the period in which they were given regular feedback on goal performance. Several months later, however, after such feedback was no longer given, their performance returned to previous levels. Source: Based on data reported by Ludwig & Geller, 1997; see Note 30. commitments, making it clear precisely how it can be attained. Third, managers and their supervisors determine “accountabilities”—that is, specific ways of measuring each of the commitments, so that progress can be gauged. As we have shown, goal setting is a very effective tool managers can use to motivate people. Setting a specific, acceptably difficult goal and providing feedback about progress toward that goal greatly enhance job performance. Companies, both large and small, rely on the technique of goal setting, and its effectiveness has been established widely. Motivating by Being Equitable
- 802. Earlier in this chapter, we explained that although money isn’t the top motivator for workers, it’s still extremely important to them. It would be overly simplistic and misleading to suggest that people only want to earn as much money as possible. Even the highest-paid executives, sports figures, and celebrities sometimes complain about their pay despite receiving multimillion-dollar salaries.32 Are they being greedy? Not necessarily. Often, the issue is not the actual amount of pay received, but rather, pay equity—that is, how one’s pay compares to that of others doing similar work or to themselves at earlier times. As we noted in Chapter 2, organizational scientists are keenly interested in understanding fairness on the job and how people respond when they believe they have been treated unfairly. One particular approach to distributive justice, known as equity theory, focuses on the motiva- tional aspects of fairness. We examine it closely here. Equity Theory: Balancing Outcomes and Inputs Equity theory proposes that people are motivated to maintain equitable (i.e., fair) relationships between themselves and others and to avoid those relationships that are inequitable.33 In judging equity, people compare themselves to others by focusing on two variables: outcomes—what we equity theory The theory stating that people strive to maintain ratios of their own outcomes (rewards) to their own inputs (contributions) that are equal
- 803. to the outcome/input ratios of others with whom they compare themselves. outcomes The rewards employees receive from their jobs, such as salary and recognition. CHAPTER 7 • MOTIVATION IN ORGANIZATIONS 255 get out of our jobs (e.g., pay, fringe benefits, and prestige)— and inputs—the contributions made (e.g., time worked, effort exerted, units produced). It helps to think of these judgments in the form of ratios—that is, the outcomes received relative to the inputs contributed (e.g., $1,000 per week in exchange for working 40 hours). It is important to note that equity theory deals with outcomes and inputs as they are perceived by people, not necessarily objective standards. As you might imagine, well-intentioned people sometimes disagree about what constitutes equitable treatment. According to equity theory, people make equity judgments by comparing their own outcome/input ratios to the corresponding outcome/input ratios of others. This so-called “other” may be someone else in one’s work group, another employee in the organization, an individual working in the same field, or even oneself at an earlier point in time—in short, almost anyone against whom we compare ourselves. As shown in Figure 7.8, these comparisons can result in any
- 804. of three different states: overpayment inequity, underpayment inequity, or equitable payment. Let’s consider a simple example. Suppose Alice and Beth work together as paralegals in a law firm. Both women have equal amounts of experience, training, and education, and work equally long and hard at their jobs. In other words, their inputs are equivalent. But suppose Alice is paid an annual salary of $45,000 while Beth is paid only $35,000. In this case, Alice’s ratio of outcomes/inputs is higher than Beth’s, creating a state of overpayment inequity for Alice (since the ratio of her outcomes/inputs is higher than Beth’s), but underpayment inequity for Beth (since the ratio of her outcomes/inputs is lower than Alice’s). According to equity theory, Alice, realizing that she is paid more than an equally qualified person doing the same work, will feel guilty in response to her overpayment. By contrast, Beth, realizing that she is paid less than an equally qualified person for doing the same work, will feel angry in response to her underpayment. Guilt and anger are negative emotional states that people are motivated to inputs People’s contributions to their jobs, such as their experience, qualifications, or the amount of time worked. overpayment inequity The condition, resulting in feelings of guilt, in which
- 805. the ratio of one’s outcomes to inputs is more than the corresponding ratio of another person with whom that person compares himself or herself. underpayment inequity The condition, resulting in feelings of anger, in which the ratio of one’s outcomes to inputs is less than the corresponding ratio of another person with whom one compares himself or herself. Social comparison greater than less than to Person A Overpayment inequity for Person A
- 806. Underpayment inequity for Person A Equitable payment for Person A Underpayment inequity for Person B Overpayment inequity for Person B Equitable payment for Person B Person B Guilty Outcomes Inputs Angry Outcomes Inputs
- 807. Satisfied Outcomes Inputs Satisfied Outcomes Inputs Angry Outcomes Inputs Guilty Outcomes Inputs equal FIGURE 7.8 Equity Theory: An Overview To judge equity or inequity, people compare the ratios of their own outcomes to inputs with the corresponding ratios of others (or of themselves at
- 808. earlier points in time). The resulting states— overpayment inequity, underpayment inequity, and equitable payment— are summarized here, along with their associated emotional responses. 256 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION change. As a result, they will seek to create a state of equitable payment in which their outcome/input ratios are equal, leading them to feel satisfied. Sometimes, people’s emotional reactions to underpayment inequity can be quite intense, even if they are making millions of dollars. In recent years, people in many industries have been forced to take pay cuts as a serious economic recession hit businesses very hard. This has been the case in television broadcasting, where advertising revenues have plummeted. One person who has been affected by this is actor Eric Braeden, who, for 30 years, played the part of Victor Newman in CBS TV’s top daytime drama, The Young and the Restless. Despite making a seven-figure salary, Braeden was so angry in the fall of 2009 when the production company told him that he’d have to take “a substantial salary cut” that he stormed off the set (see Figure 7.9).34 Ultimately, he returned to the show, where he did, in fact, take a lower salary. Although few of us make anywhere near the amount of
- 809. money that he makes, Braeden’s feelings are understandable from the perspective of equity theory. If one day you make less money than you did the day before, even if it’s still millions of dollars, you are likely to feel underpaid. CREATING EQUITY. How can inequitable states be turned into equitable ones? The answer lies in adjusting the balance of outcomes and/or inputs. Among people who are underpaid, equity can be created by raising one’s outcomes and/or lowering one’s inputs. Likewise, those who are over- paid either may lower their outcomes or raise their inputs. Either action effectively would make the two outcome/input ratios equivalent. For example, the underpaid person, Beth, might lower her inputs, such as by slacking off, arriving at work late, leaving early, taking longer breaks, doing less work or lower quality work—or, in an extreme case, quitting her job. She also may FIGURE 7.9 A Pay Cut for Victor Newman? Actor Eric Braeden (shown right) is not Victor Newman, but after playing him for three decades on The Young and the Restless, the two can be confused. Like the character he portrays, Braeden is well paid for what he does. Similarly, both are quick to react when things are not to their liking. Although Newman’s antics have been known to be extreme, Braeden’s reactions are far more understandable. When declining television revenues required him to take a pay cut, Braeden was not reticent about sharing his discontent by storming off the set, leaving co-star Melody Thomas Scott
- 810. (shown left) in a difficult position. According to equity theory, when people are paid less than comparable others doing the same work, or themselves at earlier points in time, they feel underpaid. This leads them to feel angry—even if their pay is still quite high in absolute terms. equitable payment The state in which one person’s outcome to input ratios is equivalent to that of another person with whom this individual compares himself or herself. Ph ot os 1 2/ A la m y Im ag es .
- 811. CHAPTER 7 • MOTIVATION IN ORGANIZATIONS 257 attempt to raise her outcomes, such as by asking for a raise, or even taking home company property, such as office supplies. By contrast, the overpaid person, Alice, may do the opposite— raise her inputs or lower her outcomes. For example, she might put forth much more effort, work longer hours, and try to make a greater contribution to the company. She also might lower her outcomes, such as by working while on a paid vacation, or not taking advantage of fringe benefits the company offers. These are all specific behavioral reactions to inequitable conditions—that is, things people can do to turn inequitable states into equitable ones. However, people may be unwilling to do some of the things necessary to respond behaviorally to inequities. In particular, they may be reluctant to steal from their employers, or unwilling to restrict their productivity, for fear of getting caught “goofing off.” In such cases, people may attempt to resolve inequity cognitively, by changing the way they think about the situation. As noted earlier, because equity theory deals with perceptions, inequitable states may be redressed by altering one’s thinking about one’s own—and others’—outcomes and inputs. For example, underpaid people may rationalize that others’ inputs really are higher than their own (e.g., “I suppose she really is more qualified than me”), thereby convincing themselves that their higher outcomes are justified. Similarly, overpaid people may convince themselves that they really are better and deserve their relatively higher pay. Thus, by
- 812. changing the way they see things, people can come to perceive inequitable situations as equitable, effectively relieving their feelings of guilt and anger, and transforming them into feelings of satisfaction. For a summary of behavioral and psychological reactions to inequity, see Table 7.3. RESPONDING TO INEQUITIES ON THE JOB. From personal experience, how do you feel when you believe you have been unfairly paid? Equity theory suggests that you will find this highly distressing. Indeed, research has shown that the more people believe they are unfairly paid, the more negative symptoms of stress they display, such as coronary heart disease, depression, and insomnia.35 Obviously unwilling to allow such conditions to develop, people are motivated to redress inequities at work, and they respond much as equity theory suggests. Consider two exam- ples from the world of sports. Research has shown that professional basketball players who are underpaid (i.e., ones who are paid less than others who perform as well or better) score fewer points than those who are equitably paid.36 Similarly, among baseball players, those paid less than others who play comparably well tend to change teams or even leave the sport when they are unsuccessful at negotiating higher pay. We also know that underpaid workers attempt to raise their outcomes. For example, in an organization studied by the author, workers at two manufacturing plants suffered an underpayment created by the introduction of a temporary pay cut of 15 percent.37 During the 10-week period
- 813. TABLE 7.3 Possible Reactions to Inequity: A Summary People can respond to overpayment and underpayment inequities in behavioral and/or psychological ways. A few of these are summarized here. These reactions help change the perceived inequities into a state of perceived equity. Form of Reaction Type of Inequity Behavioral: What You Can Do Is . . . Psychological: What You Can Think Is . . . Overpayment inequity Raise your inputs (e.g., work harder) or lower your outcomes (e.g., work through a paid vacation). Convince yourself that your outcomes are deserved based on your inputs (e.g., rationalize that you work harder than others and so you deserve higher pay). Underpayment inequity Lower your inputs (e.g., reduce effort) or raise your outcomes (e.g., get a raise in pay). Convince yourself that others’ inputs are really higher than your own (e.g., rationalize that the comparison worker is really more
- 814. qualified and so deserves higher outcomes). 258 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION under which workers received lower pay, company officials noticed that theft of company property increased dramatically, approximately 250 percent. However, in another factory in which compara- ble work was done by workers paid at their normal rates, the theft rate remained low. This pattern suggests that employees may have stolen property from their company to compensate for their reduced pay. Consistent with this possibility, it was found that when the normal rate of pay was reinstated in the two factories, the theft rate returned to its normal, low level. These findings suggest that companies that seek to save money by lowering pay may be merely encouraging their employ- ees to find other ways of making up for what they believe is rightfully theirs. In extreme cases, people respond to inequity by quitting their jobs.38 This, of course, is a very costly thing to do. However, many who take this drastic step do so because they feel that their current situations are intolerable and hope that more equitable conditions can be found elsewhere. (Interestingly, people also perceive inequities in one of the most common jobs they do—housework. Here too, they quit, so to speak, by getting divorced. As chronicled in the Today’s Diverse and Global Organizations section below, married men and women perceive
- 815. workplace inequities differently.) Managerial Implications of Equity Theory Equity theory has important implications for ways of motivating people.39 We highlight three key ones here. AVOID UNDERPAYMENT. Companies that attempt to save money by reducing employees’ salaries may find that employees respond in many different ways so as to even the score. For example, they may steal, or they may shave a few minutes off their workdays, or otherwise withhold production. Today’s Diverse and Global Organizations Inequity in Housework: Comparing Married Women and Men Suppose you’re working with a partner on an important job on which there’s a recurring inequity with respect to the division of labor: The other individual does far less than his or her fair share of the work but reaps the same benefits as you. From the perspective of equity theory, this is clearly inequitable. You are underpaid and that other person is overpaid. Interestingly, this exact situation occurs regularly with respect to one of the most important jobs people perform—housework—and among the most important partners we have—our spouses. In this case, although the outcome is not money, but rather, living in a healthy and well-organized environment, the possibility that our partner’s contributions to this end may be inequitable is a con- siderable source of conflict. Despite the trend toward equality of the sexes, it remains the case in most households that wives do more of the housework
- 816. than their husbands, even in dual-wage-earner households. Not surprisingly, this is a source of dissatisfaction in many mar- riages.40 Importantly, research has found that the long-term effects of this particular source of inequity pose a serious threat to people’s marriages.41 In this investigation, a large sample of married men and women from dual-wage-earner families across the United States were polled at two times eight years apart. Participants were asked to indicate the proportion of routine household tasks (e.g., house cleaning, laundry) they did and the extent to which they believed this constituted a fair division of labor as opposed to being too much or too little. The findings were dramatic. Women who perceived that they did more than their fair share of the housework were more than twice as likely to be divorced from their spouses eight years later than those who perceived the division of labor to be fair. Among men, however, no such differences were found. That women divorce husbands with whom they have an inequitable division of labor follows from equity theory and research showing that people often resign from jobs on which they feel underpaid.42 The fact that men did not respond this way, however, reveals that husbands and wives have different thresholds as to what constitutes an equitable share of house- work. Compared to men, women did a far greater proportion of the housework before believing it was too much. This is in keep- ing with traditional sex roles, according to which women do more housework than men. In the case of dual-earner house- holds, however, such arrangements are impractical and generally give way to more egalitarian ones. When such expectations are violated, as often occurs because many men resent doing tradi- tional “women’s work,” women experience considerable stress because they are completing most of the housework while also working outside the home. Because this puts such women in a
- 817. highly stressful situation (see Chapter 5), it therefore is not surprising that they were likely to seek relief by ending their marriages. This research is noteworthy because of the message it sends about gender equality (or lack thereof) in what is surely among the most universal of all jobs, housework. These findings provide some insight into why, even in today’s allegedly enlightened era, many married women still face difficult choices between working inside and outside the home. CHAPTER 7 • MOTIVATION IN ORGANIZATIONS 259 In extreme cases, employees express their feelings of extreme underpayment inequity by going on strike, that is, by engaging in a systematic stoppage of work designed as a protest against one or more organizations believed to have treated them unfavorably. This practice has been used numer- ous times over the years. In fact, the first known strike in recorded history (recorded on papyrus, in this case) occurred well over 3,000 years ago when artisan tomb makers in ancient Egypt struck to protest low wages and poor working conditions.43 (For a more recent and broadly focused example—occurring, ironically, just across the Mediterranean Sea from this site—see Figure 7.10.) Over the years and across the world, groups such as builders of railroad sleeping cars, miners, garment workers, teachers, autoworkers, airline pilots,
- 818. and professional athletes (e.g., football, hockey, and baseball players), among many others, have relied on strikes to send their messages of discontent to management.44 Although the exact natures of these workers’ grievances differ from case to case, feelings of underpayment inequity are the overwhelming common theme. AVOID OVERPAYMENT. You may think that because overpaid employees work hard to deserve their pay, it would be a useful motivational technique to pay people more than they merit. However, there are two key reasons why this would be problematic.45 � Any increases in performance in response to overpayment inequity are only temporary. As time goes on, people begin to believe that they actually deserve the higher pay they’re getting and drop their work level down to normal. � When you overpay one employee, you are underpaying all the others. When the majority of the employees feel underpaid, they will lower their performance, resulting in a net decrease in productivity—and widespread dissatisfaction. With these concerns in mind, the conclusion is clear: Managers should strive to pay all employees equitably. FIGURE 7.10 Sorry, Greece Is Closed Today Ordinarily bustling, Athens International Airport was nearly
- 819. empty on February 10, 2010, as customs agents participated in a one-day strike by Greek civil service employees. Also staying home were thousands of teachers, taxi drivers, bankers, and hospital workers, bringing this usually thriving metropolis to a halt. Strikers were protesting Prime Minister George Papandreou’s plan to freeze wages and pensions, which the government claimed was necessary to avert its impending bankruptcy. Protesters countered that the plan would help the rich at the expense of the working class. strike The practice in which workers engage in a sys- tematic stoppage of work designed as protest against one or more organizations believed to have treated them unfavorably. A ri s M es si ni s/ N ew sc
- 820. om . 260 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION BE TRANSPARENT. One of the major challenges with attempting to treat people equitably is that people perceive things differently. To some extent, of course (as suggested in Chapter 3), the process of perception is bound to be imperfect because people are biased. However, companies can do something to help everyone perceive things accurately: They can share information about pay openly. This is the notion of transparency, which refers to the practice of making informa- tion about pay available openly instead of keeping it secret. Most companies are rather secretive about pay information, probably fearing backlash when employees learn what others are making. However, research has shown that it tends to work pretty much the opposite. People tend to overestimate how much their superiors are paid and as a result they feel that their own pay is not as high as it should be.46 However, when information about pay is shared, inequitable feelings are less likely to materialize. With this in mind, transparency can be useful because it helps employees understand the basis for their pay (recall our discussion of procedural justice in Chapter 2). This, in turn, leads people to trust their companies, motivating them to put forth the effort required to excel.47
- 821. Motivating by Altering Expectations Instead of focusing on individual traits and skills, goals, or social comparisons, another well- established approach to motivation, expectancy theory, takes a broader approach. It looks at the role of motivation in the overall work environment. The basic idea behind expectancy theory is that people are motivated to work when they expect that they will be able to achieve the things they want from their jobs. Expectancy theory is a cognitively oriented approach because it characterizes people as rational beings who think about what they have to do to be rewarded and how much the reward means to them. But, as we will see, the theory doesn’t focus only on what people think. It also recognizes that these thoughts combine with other aspects of the organiza- tional environment to influence job performance. Basic Elements of Expectancy Theory Although several different versions of expectancy theory have been proposed, all conceive of motiva- tion as the result of three different types of beliefs that people have.48 These are expectancy—the belief that one’s effort will result in performance; instrumentality—the belief that one’s performance will be rewarded; and valence—the perceived value of the rewards to the recipient (see Figure 7.11). We now describe each of these basic components of expectancy theory. EXPECTANCY. Sometimes people believe that putting forth a great deal of effort means that they will get a lot accomplished. However, in other cases, people do not expect that their efforts will
- 822. have much effect on how well they do. For example, an employee operating a faulty piece of transparency The practice of making information about pay available openly instead of keeping it secret. Effort Performance Expectancy Instrumentality Valence of rewards Role perceptions and opportunities Skills and abilities Job performance Rewards Motivation FIGURE 7.11 Expectancy Theory: An Overview
- 823. According to expectancy theory, motivation is the result of three types of beliefs. These are expectancy (the belief that one’s effort will influence performance), instrumentality (the belief that one will be rewarded for his or her performance), and valence (the perceived value of the rewards expected). The theory also recognizes that motivation is only one of several factors responsible for job performance. expectancy theory The theory that asserts that motivation is based on people’s beliefs about the probability that effort will lead to performance (expectancy), multiplied by the probability that performance will lead to reward (instrumentality), multiplied by the perceived value of the reward (valence). expectancy The belief that one’s efforts will positively influence one’s performance. instrumentality An individual’s beliefs regarding the likelihood of being rewarded in accord with his or her own level of performance. valence The value a person places
- 824. on the rewards he or she expects to receive from an organization. CHAPTER 7 • MOTIVATION IN ORGANIZATIONS 261 equipment may have a very low expectancy that his or her efforts will lead to high levels of performance. Naturally, someone working under such conditions probably would not continue to exert much effort. INSTRUMENTALITY. Even if an employee works hard and performs at a high level, motivation may falter if that performance is not suitably rewarded—that is, if the performance is not perceived as instrumental in bringing about rewards. So, for example, a worker who is extremely productive may be poorly motivated to perform if the pay system doesn’t recognize his or her success. Often, this occurs among people who already have reached the top pay grades in their companies. Even if they have become more successful, because they cannot be paid at higher levels in recognition of this, their motivation suffers. VALENCE. Finally, even if employees believe that hard work will lead to good performance and that they will be rewarded commensurate with their performance, they still may be poorly motivated if those so-called rewards don’t mean that much to them—that is, if they have low valence. In other words, someone who doesn’t care about the rewards offered by the organization is not motivated to
- 825. attain them. For example, a reward of $100 would be unlikely to motivate a multibillionaire like Bill Gates, although it may be a very desirable reward for someone of more modest means. Only those rewards that have a high positive valence to their recipients will motivate behavior. One important factor that enhances the valence of rewards is the extent to which they satisfy people’s fundamental needs. Psychologists have studied the nature of needs for many years and offer complex descriptions of their nature.49 Most would agree, however, that needs are forces that motivate people to satisfy states that they inherently require for biological and/or social reasons. For example, we have a need to be satisfied physiologically, such as by having food and water, and socially, such as being admired and accepted by others. As suggested by the various needs identified and summarized in Table 7.4, there are quite a few needs that motivate people in the workplace.50 As you review this list, please keep three things in mind. First, this list is not exhaustive; various theorists focus on different needs, so you may think of others that are not on this list. Second, some of these needs overlap with others. Like anything else having to do with human beings, clear lines between needs cannot always be drawn. Third, scientists disagree on whether or not people’s needs are universal in nature. Some believe that everyone has the same needs and they are relatively equal in importance all the time. Others believe that some needs are more important at some times as opposed to others. Still other scholars suggest
- 826. that people’s needs differ based on the cultures in which they live and a variety of other factors.51 What’s important for our purposes in the field of OB, however, is much simpler. You should recognize the widespread nature and impor- tance of these various needs, and that rewards that help satisfy human needs generally have high valence (i.e., they are considered most important and valuable to people). With this in mind, many of today’s companies are going out of their way to motivate employees by giving them the kinds of job perks they most desire. One particularly interesting example may be seen at Toyota. As a benefit to its U.S. employees, among whom the cost of medicine is a major concern, the company pays for the entire cost of the generic equivalent of prescription medicines, allowing employees to get them for free. Both online and on-site “Toyota Family Pharmacies” are available to employees, contributing greatly to their motivation.52 COMBINING ALL THREE TYPES OF BELIEFS. Expectancy theory claims that motivation is a multiplicative function of all three components. This means that higher levels of motivation will result when expectancy, instrumentality, and valence are all high than when they are all low. The multiplicative assumption of the theory also implies that if any one of these three components is zero, the overall level of motivation will be zero. So, for example, even if an employee believes that her effort will result in performance, which will result in reward, motivation will be zero if the valance of the reward she expects to receive is zero (i.e., if
- 827. she believes that what she stands to receive in exchange for her effort has no value to her). OTHER DETERMINANTS OF JOB PERFORMANCE. Figure 7.11 also highlights a point we made in our opening remarks about motivation—that motivation is not equivalent to job performance. Specifically, expectancy theory recognizes that motivation is one of several important determinants of job performance. needs Forces that motivate people to satisfy states that they inherently require for biological and/or social reasons. 262 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION For example, the theory assumes that skills and abilities also contribute to a person’s job performance. It’s no secret that some people are better suited to performing their jobs than others by virtue of their unique characteristics and special skills and abilities. For example, a tall, strong, well-coordinated person is likely to make a better professional basketball player than a very short, weak, uncoordinated one—even if the shorter person is highly motivated to succeed. Being highly motivated can help, of course, but it’s not always enough to compensate for lack of physical or mental prowess. This is important for managers to keep in mind when diagnosing
- 828. performance problems. If an employee is performing poorly, it might be a motivation problem (in which case, it’s worth following the suggestions in the next section of this chapter) but it also may be due to a lack of skills (in which case the guidelines for training discussed in Chapter 3 should be followed). Expectancy theory also recognizes that job performance will be influenced by people’s role perceptions—in other words, what they believe is expected of them on the job. To the extent that there are disagreements about what one’s job duties are, performance may suffer. For example, an assistant manager who believes her primary job duty is to train new employ- ees may find that her performance is downgraded by a supervisor who believes she should be spending more time doing routine paperwork instead. In this case, the person’s perfor- mance wouldn’t suffer as a result of any deficit in motivation, but simply because of misunder- standings regarding what the job entails. As fundamental as this seems, many instances of poor job performance are, with surprising regularity, simply misunderstandings about role perceptions. TABLE 7.4 Human Needs in the Workplace Our needs as human beings influence behavior in all life activities. On the job, these needs are often satisfied in a variety of ways, as summarized here. Expectancy theory recognizes that rewards with the most positive valence often are ones that satisfy needs.
- 829. Need Description/Example How Satisfied on the Job Biological and physiological needs Need for basic things such as air, food, water Companies have cafeterias for employees. Psychological and physiological safety needs Need to feel protected from harsh environments or dangerous people Safety (e.g., goggles) and security procedures (e.g. guards) are used. Affiliation, relatedness, and intimacy needs Need to feel that one has friends with whom they enjoy being and who appreciate and accept them Companies sponsor social events (e.g., picnics). Esteem needs Need to feel recognized for accomplishing things Companies conduct ceremonies in which employees receive awards (e.g., certificates, cash). Cognitive needs Need to feel that one has learned something new Company training programs help employees acquire new knowledge. Aesthetic needs Need to experience and appreciate beautiful things
- 830. Companies put interesting pieces of art throughout their facilities. Self-actualization needs The need to realize one’s personal potential Companies offer ongoing opportunities for growth and development (e.g., exposure to new people and places). Transcendence needs The need to help others grow and develop Companies provide opportunities to coach and mentor other employees. Autonomy needs The need to have the freedom to decide how to do things without interference Some jobs are designed in an effort to give people this ultimate freedom (see page 268). Competence and success needs The need to believe that one has mastered some skill and is capable of succeeding when performing it Companies provide ongoing training and give feedback to help people to recognize when they have succeeded (see Chapter 3). Power needs The need to have an impact on other people Leading and managing others satisfies this need
- 831. (see Chapters 12 and 13). Sources: Maslow, 1998; Deci et al., 2001; see Note 50. CHAPTER 7 • MOTIVATION IN ORGANIZATIONS 263 Finally, expectancy theory also recognizes the role of opportunities to perform one’s job. Even the best employees may perform at low levels if their opportunities are limited. For exam- ple, a highly motivated salesperson may perform poorly if opportunities are restricted (such as if the territory is suffering from a financial downturn, or if the available inventory is limited). Here, once again, even a highly motivated person may perform poorly under certain (not too unusual) circumstances. These examples underscore our point that motivation is just one of several determinants of job performance. The key thing to keep in mind is that motivation—combined with a person’s skills and abilities, role perceptions, and opportunities— influences job performance. Expectancy theory has generated a great deal of research and has been successfully applied to understanding behavior in many different organizational settings.53 A key reason for expectancy theory’s popularity is the many useful suggestions it makes for practicing managers. We now describe some of the most essential applications of expectancy theory, giving examples from organizations in which they have been implemented.
- 832. Putting Expectancy Theory to Work: Key Managerial Implications Expectancy theory is a very practical approach to motivation. It identifies several important things that can be done to motivate employees. MAKE IT CLEAR THAT EFFORT WILL LEAD TO PERFORMANCE. Motivation may be enhanced by training employees to do their jobs more efficiently, thereby achieving higher levels of perfor- mance. It also may be possible to enhance effort-performance expectancies by following employees’ suggestions about ways to change their jobs. To the extent that employees are aware of problems in their jobs that interfere with their performance, attempting to alleviate these problems may help them perform more effectively. In essence, what we are saying is: Make the desired performance attainable. Good supervisors don’t only make it clear to people what is expected of them, but they also help them attain that level of performance. When this occurs, workers will have a good under- standing that working hard to perform the job correctly will lead to good performance. ADMINISTER REWARDS THAT PROVIDE POSITIVE VALENCE TO EMPLOYEES. The carrot at the end of the stick must be tasty for it to have potential as a motivator. These days, with a demographi- cally diverse workforce, it would be misleading to assume that all employees care about having the same rewards. Some might recognize the incentive value of a pay raise, whereas others might prefer additional vacation days, improved insurance benefits, day care, or elder-care facilities
- 833. (see Chapter 1). With this in mind, many companies have introduced cafeteria- style benefit plans—incentive systems allowing employees to select their fringe benefits from a menu of available alternatives. Given that fringe benefits constitute about 40 percent of payroll costs, more and more companies are recognizing the value of administering them flexibly. In fact, cafeteria-style benefit plans are in place in half of all larger companies (those employing more than 5,000) and about a quarter of smaller companies (those with less than 1,000 employees). For an example of one company that has had considerable success with its cafeteria-style benefits plan, see Figure 7.12.54 CLEARLY LINK VALUED REWARDS AND PERFORMANCE. There are several ways companies can link reward to performance (supporting a principle of operant conditioning described in Chapter 3). Whatever the particulars may be, the key is to make it absolutely clear what has to be done in order to be rewarded. As an example, consider the pay plan IBM uses for its sales representatives. Previously, most of the pay these reps received was based on flat salary; their compensation was not linked to how well they did. Today, however, their pay is tied carefully to two factors that are essential to the company’s success—profitability and customer satisfaction. So, instead of receiving commissions on the amount of the sale, as so many salespeople do, 60 percent of the commissions received by IBM sales reps are tied to the company’s profit on the sales they
- 834. make. As a result, the more money the company makes, the more the reps make. And, to make sure that the reps don’t push only high-profit items that customers might not need, the remaining 40 percent of their commis- sions are based on customer satisfaction (assessed in regular surveys). Since introducing this plan, IBM has been effective in reversing its unprofitable trend. Although there are certainly many cafeteria-style benefit plans Incentive systems in which employees have an opportunity to select the fringe benefits they want from a menu of available alternatives. 264 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION factors responsible for this turnaround, experts are confident that this practice of clearly linking desired performance to individual rewards is a key factor. Compensation systems that reward people directly based on how well they perform their jobs are known as pay-for-performance plans. These may take such forms as the commission plans used for salespeople or the piece-rate systems used to pay some factory workers and field hands. Although the details vary from job to job, along with the names used to identify them, the underlying principle behind these programs is the same: Reward
- 835. people in proportion to what they do and so long as the rewards have value to them, they will work hard to attain them. About three-quarters of all companies base the pay of at least some of their employees on measures of their performance, and report that this practice is generally quite effective. As you might imagine, it is far easier to apply this principle to some jobs than others. In all cases, the trick is to identify exactly what behaviors are desired and to reward them without also unintentionally rewarding undesirable behaviors.55 IBM was aware of this when it incorporated customer service into its compensation plan to ensure that short- term sales weren’t promoted at the expense of long-term problems in the form of dissatisfied customers. Not all compensation programs are attuned equally to the important behaviors that really need to be rewarded, leading them to be misused. We see this, for example, when executives are rewarded with huge bonuses for making their companies profitable in the short run although their actions also may lead to long-term losses. Such executives did what they were rewarded for doing, and as rational beings, this is not unexpected. The problem in such cases lies not in the principle, but in the way it’s implemented. If you reward people for short-term results, that’s what they will focus on. (In recent years, pay-for-performance plans have been used to determine the compensation of a particular group of individuals who traditionally have not been associated with them, physicians. FIGURE 7.12
- 836. Flexible Benefits at Oracle Oracle, the large business software company, occupies this sprawling campus in Redwood Shores, California. Because the company hires people at many different career stages, a one-size-fits-all benefits plan is unlikely to make all of its 100,000 worldwide employees happy. To avoid this problem, the cafeteria-style benefits plan called “ORACLEflex” offers employees far more choices and greater flexibility than traditional health and insurance benefits plans. Staff members can design a custom benefits package for their unique situations. They are awarded flex credits that can be exchanged for whatever benefits they need, allocating any unused credits to a 401(k) savings plan or even regular taxable income. It’s all up to them. pay-for-performance A payment system in which employees are paid differen- tially, based on the quantity and quality of their perfor- mance. Pay-for-performance plans strengthen instrumentality beliefs. A er ia l A rc hi
- 837. ve s/ A la m y Im ag es . CHAPTER 7 • MOTIVATION IN ORGANIZATIONS 265 For a discussion of this relatively new, and controversial, way of paying medical doctors, see The Ethics Angle section above.) When rewards are linked to performance, it’s not necessary for them to be monetary in nature. Even symbolic and verbal forms of recognition for a job well done can be very effective. For exam- ple, companies that verbally acknowledged their employees’good attendance records acknowledged dramatic improvements in attendance.61 With this in mind, many organizations help recognize their employees’ contributions by acknowledging them in their corporate newsletters. As a case in point, consider CalPERS, the Sacramento-based firm that manages the pension
- 838. and health benefits of 1.6 million Californians. In recent years, this company has been involved so actively in acknowledging the hard work of its employees that it has won a Best Practice Award from the National Association for Employee Recognition. The employee recognition— through printed and online newsletters, among other methods— has been so extensive and has generated so much goodwill that the company has been able to take on more work without having to hire additional employees.62 Obviously, recognizing employees need not be lavish or expensive. It can involve nothing more than a heartfelt thank- you. Some companies are so serious about paying employees for their performance that they are giving them pieces of the company in exchange for their contributions—a practice that is sure to link performance with rewards in their minds.63 One form this has taken, particularly in many high-tech start-ups, is known as incentive stock option (ISO) plans. In such programs, a company grants an employee the opportunity to purchase its stock in the future at a specified price. So, over time, if the value of the company’s stock increases, the employee can “exercise the option” by selling the stock at a profit, and with certain income tax advantages.64 The Ethics Angle Should Doctors Be Paid for Their Performance? Traditionally, physicians have been paid on a fee-for-service
- 839. basis. They complete the service, such as examining a patient or performing a medical procedure, and they are paid for this by patients and their insurance companies. Now, however, a move- ment has been emerging in the United States and Great Britain that promises to change this. Some health insurance providers currently are rewarding doctors not for what they do, but how well they do it—that is, for meeting preestablished standards of quality and efficiency for the services they deliver. Although sometimes referred to as “value-based purchasing,” by any other name, these are still pay-for-performance plans. For the most part, professional groups, such as the American Medical Association, are supportive of this practice so long as several important considerations are satisfied. Most importantly, the indicators of quality have to be completely appropriate for all services provided. Otherwise, doctors may do what they have to do to satisfy these standards at the expense of their patients. Although this principle may be relatively easy to implement for salespeople, the unforeseen complexities of some medical cases may make it extremely challenging to apply to physicians. The key is to have valid indicators of quality. For treating straightforward problems, metrics such as improvements in val- ues revealed in laboratory tests are reasonable indicators that the doctor’s course of treatment was effective. However, when it comes to diagnosing and managing complex diseases, where patients see multiple doctors, exactly what constitutes a “quality target” is likely to be very difficult to specify.56 In such cases, quality targets are essentially moving targets. This concern was expressed clearly by the Endocrine Society, which cautioned, “it
- 840. is difficult to develop standardized measure across medical specialties . . . variations must be allowed to meet the unique needs of the individual patient.”57 Another concern, and a potentially serious one for some patients, is that doctors whose performance is being assessed in terms of certain criteria might be inclined to refuse to accept new patients who they believe will be unable to help with respect to those criteria.58 These may be individuals whose diseases are too advanced or whose symptoms make diagnosis challenging. Also likely to be refused service under pay-for-performance plans may be groups who require special attention because doctors might not be able to treat them as quickly or as effectively as others. This includes people who are poor, who cannot afford certain medical treatments, and who aren’t responsive to their doctors' orders.59 Believing that such individuals—all patients, regardless of their conditions—deserve treatment and should have a right to medical care, some find it difficult to support a system that threatens to compromise these rights.60 Medical ethics requires that physicians “do no harm,” but questions are being raised about the appropriateness of a pay-for-performance system that encourages doctors to harm patients by providing disin- centives to treat those who are in greatest need of attention. Of course, the system is new and it may need to be revised. Perhaps it may be used only selectively as a basis for compen- sating some physicians on certain occasions. It’s too soon to tell. Although it’s unclear how all these details will play out in the future, one thing’s for certain: The debate about pay-for- performance among health-care professionals will continue for years to come.
- 841. incentive stock option (ISO) plans Corporate programs in which a company grants an employee the opportunity to purchase its stock at some future time at a specified price. 266 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION Although the exact rules for ISOs are complex, the underlying rationale is straightforward: They give employees a stake in the success of the company. So, what’s good for the company also is good for the employee. In expectancy theory terms, ISOs may be beneficial insofar as they enhance instrumentality beliefs by rewarding employees when their company does well. And this motivates them to put forth the effort to succeed. For example, at Merck & Co., the large pharma- ceutical firm, the availability of ISOs has proven to be a very successful motivational device.65 They encourage employees to help make the company perform at higher financial levels, and as this occurs, the more its stock value rises, making employees wealthier. Motivating by Structuring Jobs to Make Them Interesting The final approach to motivation we consider, job design, is the broadest in scope because it is
- 842. directed at improving the essential nature of the work performed. The idea behind job design is that motivation can be enhanced by making jobs more appealing to people. As you may recall from Chapter 1, Frederick W. Taylor’s principle of scientific management attempted to stimulate performance by designing jobs in the most efficient fashion. However, treating people like machines often meant having them engage in repetitive movements, which they found highly routine and monotonous. Not surprisingly, people became bored with such jobs and frequently quit.66 Fortunately, today’s organizational scientists have found several ways of designing jobs that can not only be performed very efficiently, but are also highly pleasant and enjoyable. Job Enlargement and Job Enrichment Imagine that you have a highly routine job, such as tightening the lugs on the left rear wheel of a car as it rolls down the assembly line. Naturally, such a highly repetitive task would be monoto- nous and not very pleasant. One of the first modern approaches to redesigning jobs suggested that such consequences could be minimized by having people perform an increased number of different tasks all at the same level. This approach is known as job enlargement. To enlarge the jobs in our example, workers could be required to tighten the lugs on all four wheels. As a result, employees would have no more responsibility nor use any greater skills, but they would perform a wider variety of different tasks at the same level. Adding tasks in this fashion is said to increase the horizontal job loading of the position.
- 843. A few years ago, the 100-year-old American Greetings Corporation, in Cleveland, Ohio, enlarged some 400 jobs in its creative division, where employees design greeting cards.67 Now, rather than always working exclusively on Christmas cards, for example, employees are able to move back and forth between different teams, such as those working on birthday ribbons, humorous mugs, and Valentine’s Day gift bags. Employees at American Greetings reportedly enjoy the variety, as do those at RJR Nabisco, Corning, and Eastman Kodak, other companies that have allowed employees to make such lateral moves. Although most reports of the effectiveness of job enlargement have been anecdotal, a few carefully conducted empirical studies also have examined their impact. For example, one group of researchers studied the effects of a job enlargement program instituted at a large financial services company.68 The unenlarged jobs had different employees perform separate paperwork tasks such as preparing, sorting, coding, and keypunching various forms. By contrast, in the enlarged jobs these various functions were combined into larger jobs performed by single individuals. Although it was more difficult and expensive to train people to perform enlarged jobs than separate, unenlarged jobs, employees performing enlarged jobs expressed higher levels of job satisfaction and lower levels of boredom. And, because one person performing an enlarged job followed it all the way through from beginning to end, greater opportunities to correct errors existed. Not surprisingly, customers were satisfied with the result.
- 844. Unfortunately, in a follow-up investigation of the same company conducted two years later, it was found that not all the beneficial effects continued.69 Notably, employee satisfaction leveled off and the rate of errors rose, suggesting that as employees get used to enlarged jobs they find them less interesting, and pay less attention to details. Hence, although job enlargement may help improve job performance, its effects may be short-lived.70 job design An approach to motivation suggesting that jobs can be created so as to enhance people’s interest in doing them. See job enlargement, job enrichment, and the job characteristics model. job enlargement The practice of expanding the content of a job to include more variety and a greater number of tasks at the same level. CHAPTER 7 • MOTIVATION IN ORGANIZATIONS 267 (high) (low) (high)(low)
- 845. Le ve l o f Re sp on si bi lit y (v er ti ca l j ob lo ad in g) Number of Tasks (horizontal job loading) Task
- 847. lo ad in g) Number of Tasks (horizontal job loading) Task 1 Task 2 (high)(low) (high) (low) Le ve l o f Re sp on si bi lit
- 848. y (v er ti ca l j ob lo ad in g) Number of Tasks (horizontal job loading) Task 1 Task 2 Task 3 Task 4 Job enlargement adds more tasks at the same level of
- 849. responsibility Standard Job Enriched Job Enlarged Job Job enrichment adds more responsibility to the same number of tasks FIGURE 7.13 Job Enlargement and Job Enrichment: A Comparison Redesigning jobs by increasing the number of tasks performed at the same level (horizontal job loading) is referred to as job enlargement. Redesigning jobs by increasing employees’ levels of responsibility and control (vertical job loading) is referred to as job enrichment. A more effective approach, job enrichment, gives employees not only more tasks to perform, but also ones requiring higher levels of skill and responsibility
- 850. (see Figure 7.13). Specifically, job enrichment gives employees the opportunity to take greater control over how to do their jobs. Because people performing enriched jobs have increased opportunities to work at higher levels, the job enrichment process is said to increase a job’s vertical job loading. The idea underlying job enrichment is that by making the jobs more interesting to people, they will be more highly moti- vated to perform them. Generally speaking, this is the case. In fact, an interesting by-product of enriching jobs has been found—people performing enriched jobs tend to procrastinate (i.e., put off things they are supposed to do) less than those who perform more standard jobs.71 Although evidence suggests that job enrichment programs generally have been successful, several factors limit their popularity.72 Most obvious is the difficulty of implementation. To redesign existing facilities so that jobs can be enriched is often prohibitively expensive. Besides, the technology needed to perform certain jobs makes it impractical for them to be redesigned. Another impediment is the lack of employee acceptance. Although many people desire the additional responsibility associated with performing enriched jobs, others prefer to avoid it. In particular, individuals low in achievement motivation (see Chapter 4) are especially frustrated with enriched jobs.73 Clearly, enriched jobs are not for everyone. job enrichment The practice of giving employees a high degree of
- 851. control over their work, from planning and organiza- tion, through implementing the jobs and evaluating the results. 268 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION The Job Characteristics Model Thus far, we have failed to specify precisely how to enrich a job. What elements of a job need to be enriched for it to be effective? An attempt to expand the idea of job enrichment, known as the job characteristics model, provides an answer to this important question. The job characteristics model assumes that jobs can be designed so as to help people get enjoyment out of their jobs and care about the work they do. It identifies how jobs can be designed to help people feel that they are doing meaningful and valuable work. In particular, the model specifies that enriching certain elements of jobs alters people’s psychological states in a manner that enhances their work effective- ness.74 Specifically, it identifies five core job dimensions that help create three critical psychologi- cal states, leading, in turn, to several beneficial personal and work outcomes (see Figure 7.14). COMPONENTS OF THE MODEL. The five critical job dimensions are skill variety, task identity, task significance, autonomy, and feedback. Let’s take a closer look at these. � Skill variety refers to the extent to which a job requires doing
- 852. different activities using several of the employee’s skills and talents. For example, an office manager with high skill variety may have to perform many different tasks (e.g., do word processing, answer the telephone, greet visitors, and file records). � Task identity refers to the extent to which a job requires completing a whole piece of work from beginning to end. For example, tailors will have high task identity if they do every- thing related to making a whole suit (e.g., measuring the client, selecting the fabric, cutting and sewing it, and altering it to fit). � Task significance refers to the degree of impact the job is believed to have on others. For example, medical researchers working on a cure for a deadly disease probably recognize the importance of their work to the world at large. Even more modest contributions to the company can be recognized as being significant to the extent that employees understand the role of their jobs in the overall mission of the organization. � Autonomy refers to the extent to which employees have the freedom and discretion to plan, schedule, and carry out their jobs as desired. For example, a furniture repair person may act highly autonomously by freely scheduling his or her day’s work and by freely deciding how to tackle each repair job confronted. (For an example of the motivational problems created by the lack of autonomy in one particular job, see the OB in Practice section on page 269.)
- 853. job characteristics model An approach to job enrich- ment specifying that five core job dimensions (skill variety, task identity, task significance, autonomy, and job feedback) produce criti- cal psychological states that lead to beneficial outcomes for individuals (e.g., high job satisfaction) and the organization (e.g., reduced turnover). CRITICAL PSYCHOLOGICAL STATES CORE JOB DIMENSIONS PERSONAL AND WORK OUTCOMES Experienced meaningfulness of the work Experienced responsibility
- 854. for outcomes of the work Knowledge of the actual results of the work activities Employee growth need strength Skill variety Task identity Task significance Autonomy Feedback High internal work motivation High-quality work performance High satisfaction with the work Low absenteeism and turnover FIGURE 7.14
- 855. The Job Characteristic Model: Basic Components The job characteristics model stipulates that certain core job dimensions lead to certain critical psychological states, which, in turn, lead to several beneficial personal and work outcomes. The model also recognizes that these relationships are strongest among individuals with high levels of growth need strength. CHAPTER 7 • MOTIVATION IN ORGANIZATIONS 269 � Feedback refers to the extent to which the job allows people to have information about the effectiveness of their performance. For example, telemarketing representatives regularly receive information about how many calls they make per day and the number and values of the sales made. The model specifies that these job dimensions have important effects on various critical psychological states. For example, skill variety, task identity, and task significance jointly contribute to a task’s experienced meaningfulness. A task is
- 856. considered to be meaningful to the extent that it is experienced as being highly important, valuable, and worthwhile. Jobs that provide a great deal of autonomy are said to make people feel personally responsible and accountable for their work. When they are free to decide what to do and how to do it, they feel more responsible for the results, whether good or bad. Finally, effective feedback is said to give employees knowledge of the results of their work. When a job is designed to provide people with information about the effects of their actions, they are better able to develop an understanding of how effectively they have performed—and such knowledge improves their effectiveness. The job characteristics model indicates that the three critical psychological states affect various personal and work outcomes—namely, people’s feelings of motivation, the quality of work performed, satisfaction with work, absenteeism, and turnover. The higher the experienced meaningfulness of work, responsibility for the work performed, and knowledge of results, the more positive the personal and work benefits will be. When they perform jobs that incorporate high levels of the five core job dimensions, people should feel highly motivated, perform high- quality work, be highly satisfied with their jobs, be absent infrequently, and be unlikely to resign from their jobs. DOES THE JOB CHARACTERISTICS MODEL APPLY TO EVERYONE? At the end of the section on job enrichment, we indicated that there are individual differences in
- 857. its effectiveness. Considering that the job characteristics model is a formal and expanded way to enrich jobs, it shouldn’t be surprising that individual differences in effectiveness occur here, too. In particular, the OB in Practice Autonomy Is Not Music to the Maestro’s Ears When you think of people with limited autonomy on the job, the image probably comes to mind of assembly-line workers in factories who are required to work in a routinized fashion. It’s easy to imagine how the highly mechanical nature of such jobs can limit their potential to motivate. You probably don’t realize that a similar situation also exists among one of the most highly prestigious and sought-after jobs—musicians in professional orchestras. Indeed, research has shown that orchestra musicians tend to be less satisfied with their jobs (a key variable predicted by the job characteristics model) than their counterparts in small chamber groups, such as string quartets.75 Despite the apparent glamour, orchestra musicians generally have little freedom to perform their jobs as they wish. In fact, for centuries, tradition has held that orchestra musicians be sub- servient to the sometimes dictatorial whims of the maestros who conduct them. The musicians play their instruments, but follow- ing the explicit hierarchy of the symphony orchestra, the conduc- tor very carefully regulates precisely how they play them, demanding perfection down to the slightest inflection of the final note. There is no doubt who’s in charge and who makes all the
- 858. decisions. Believe it or not, it was only in the past few years that orchestra unions won the right for musicians to take regularly scheduled bathroom breaks during rehearsal sessions. Until then, it was not unusual for orchestra musicians to face the wrath of angry conductors if they felt the need to heed nature’s call. By contrast, members of small musical ensembles enjoy con- siderable autonomy to interpret musical pieces, thereby allowing them to be highly involved in their performances, tapping more of their own talents. This is especially so in the case of jazz musi- cians, among whom the freedom to improvise is not only permit- ted, but encouraged. In keeping with the job characteristics model, it therefore is not surprising that such individuals are gen- erally more satisfied with their jobs than members of orchestras, whose work is designed in a far less enriching fashion (assuming that they have high amounts of growth need strength). Although it is not our intention to rob you of the glory of the musical experience by explaining this to you, it is fascinating to know that the field of OB has much to say about the personal experiences of these individuals who are entertaining you. After all, as unique as their positions may be, musicians—if they are fortunate enough to be working—still hold jobs, and as such, their behavior stands to be informed by the field of OB. Your takeaway is clear: To promote autonomy, taking a page from maestros will only lead to sour notes.
- 859. 270 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION model is theorized to be especially effective in describing the behavior of a certain group of individuals—those who have high amounts of growth need strength. These are individuals who have a high need for personal growth and development. People not particularly interested in improving themselves on the job are not expected to experience the theorized psychological reactions to the core job dimensions, nor consequently, to enjoy the beneficial personal and work outcomes predicted by the model.76 PUTTING IT ALL TOGETHER. Based on the proposed relationship between the core job dimen- sions and their associated psychological reactions, the model claims that job motivation will be highest when the jobs performed rate high on the various dimensions. To assess this, a questionnaire known as the Job Diagnostic Survey (JDS) has been developed to measure the degree to which various job characteristics are present in a particular job.77 Based on responses to the JDS, we can make predictions about the degree to which a job motivates people who perform it. The JDS yields an index known as the motivating potential score (MPS), which is a summary index of a job’s potential for motivating people. The higher the score for a given job, the greater the likelihood of experiencing the personal and work outcomes specified by the model. Knowing a job’s MPS helps one identify jobs that might benefit by being redesigned.
- 860. EVIDENCE FOR THE MODEL. The job characteristics model has been the focus of many empir- ical tests, most of which are supportive of many of its aspects.78 One study conducted among a group of South African clerical workers found particularly strong support.79 The jobs of employees in some of the offices in this company were enriched in accordance with techniques specified by the job characteristics model. Specifically, employees performing the enriched jobs were given opportunities to choose the kinds of tasks they perform (high skill variety), do the entire job (high task identity), receive instructions regarding how their job fit into the organization as a whole (high task significance), freely set their own schedules and inspect their own work (high autonomy), and keep records of their daily productivity (high feedback). Another group of employees, equivalent in all respects except that their jobs were not enriched, served as a control group. After employees performed the newly designed jobs for six months, comparisons were made between them and their counterparts in the control group. With respect to most of the outcomes specified by the model, individuals performing redesigned jobs showed superior results. Specifically, they reported feeling more internally motivated and more satisfied with their jobs. There were also lower rates of absenteeism and turnover among employees performing the enriched jobs. The only outcome predicted by the model that was not affected
- 861. was actual job performance; people performed equally well in enriched and unenriched jobs. This isn’t particularly surprising in this study because the complexity of the work allowed many factors to affect job performance, not all of which were likely to be affected by job design. However, recent research has shown that for more simple types of jobs, one particular job characteristic, task significance, does indeed have a beneficial effect on job performance. Participants in this study were telephone solicitors for a university who called alumni requesting donations to fund a scholarship at their alma mater.80 Before work one day, a randomly selected group of callers was asked to read brief stories explaining the beneficial impact of these scholarships on the lives of former students. Through this procedure, the signifi- cance of their jobs was enhanced in their minds. Another group of callers assigned to the control group received no information of any kind. As shown in Figure 7.15, explaining the significance of their jobs dramatically improved callers’ performance on those jobs. Compared to the control group, workers who were led to understand the significance of their jobs performed them at much higher levels. In fact, these callers raised more than twice as much money from the alumni they phoned, suggesting that appreciating the significance of their jobs encourages people to put more effort into performing them. Designing Jobs That Motivate: Managerial Guidelines The job characteristics model specifies several ways in which jobs can be designed to enhance
- 862. their motivating potential.81 In Table 7.5 we present these in the form of general principles. motivating potential score (MPS) A mathematical index describing the degree to which a job is designed so as to motivate people, as sug- gested by the job character- istics model. It is computed on the basis of a question- naire known as the Job Diagnostic Survey (JDS). The lower the MPS, the more the job may stand to benefit from redesign. growth need strength The personality variable describing the extent to which people have a high need for personal growth and development on the job. People who have high levels of growth need strength are most inclined to behave in accordance with the job characteristics model. CHAPTER 7 • MOTIVATION IN ORGANIZATIONS 271 3,500
- 863. 3,000 2,500 2,000 1,500 1,000 500 Before Time Relative to Explanation After No Explanation Significance Explained Job performance improved after its significance was explained to workers M ea n Am ou nt
- 864. o f Do na ti on Ra is ed ( in D ol la rs ) 0 FIGURE 7.15 The Significance of Task Significance: An Experimental Demonstration An experiment compared the job performance levels of groups of telephone solicitors seeking donations for a university alumni fund. One group, whose members were selected at random, received explanations of the importance of their jobs; the other group received no
- 865. information of any kind. As shown here, the callers who were led to understand the significance of the donations they were seeking solicited more than twice as much money. Source: Grant, A. M. (2008). The significance of task significance: Job performance effects, relational mechanisms, and boundary conditions. Journal of Applied Psychology, 93, 108– 124. TABLE 7.5 Principles for Enriching Jobs Following the Job Characteristics Model The job characteristics model suggests four important principles that can be followed to enrich jobs. These incorporate various core job dimensions responsible for enhancing motivation and performance. Principle Core Job Dimensions Incorporated 1. Combine tasks, enabling workers to perform the entire job. Skill variety Task identity 2. Open feedback channels, giving workers knowledge of the results of their work Feedback 3. Establish client relationships, allowing providers of a service
- 866. to meet the recipients. Skill variety Autonomy Feedback 4. Load jobs vertically, allowing greater responsibility and control over work Autonomy Source: Based on information in Hackman, 1976; see Note 81. COMBINE TASKS. Instead of having several workers each perform a separate part of a whole job, it would be better to have each person perform the entire job. Doing so helps provide greater skill variety and task identity. For example, Corning Glass Works redesigned jobs so that people who assembled laboratory hot plates put together entire units instead of contributing a single part to the assembly process.82 272 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION OPEN FEEDBACK CHANNELS. Jobs should be designed to give employees as much feedback as possible. The more people know how well they’re doing (be it from customers, supervisors, or coworkers), the better equipped they are to take appropriate corrective action and plan for the future (see Figure 7.16). (You may recall that we already noted the
- 867. importance of feedback in the learning process in Chapter 3, and in conjunction with goal setting earlier in this chapter.) Sometimes, cues about job performance can be clearly identified as people perform their jobs (as we noted in conjunction with goal setting). In the best cases, open lines of communication between employees and managers are so strongly incorporated into the corporate culture—as has been reported to exist at Boise Cascade’s paper products group—that feedback flows without hesitation.83 ESTABLISH CLIENT RELATIONSHIPS. The job characteristics model suggests that jobs should be set up so that the person performing a service (such as an auto mechanic) comes into contact with the recipient of the service (such as the car owner). Jobs designed in this manner will not only help the employee by providing feedback, but also provide skill variety (e.g., talking to customers in addition to fixing cars) and enhance autonomy (by giving people the freedom to manage their own relationships with clients). This suggestion has been implemented at Sea-Land Service, the large containerized ocean-shipping company.84 Once this company’s mechanics, clerks, and crane operators started meeting with customers, they became much more productive. Having faces to associate with the once-abstract jobs they did clearly helped them take the jobs more seriously. LOAD JOBS VERTICALLY. As we described earlier, loading a job vertically involves giving people greater responsibility for their jobs. Taking responsibility and
- 868. control over performance away from managers and giving it to their subordinates increases the level of autonomy the jobs offer these lower-level employees. And, according to a recent poll, autonomy is among the most important things people look for in their jobs—even more important than high pay.85 In view of this, a growing number of companies are yielding control and giving employees increasing freedom to do their jobs as they wish (within limits, at least). FIGURE 7.16 What Is the Future of the Olympics? Your Feedback Is Invited It’s not unusual for organizations to ask their customers what they think of them so they can use the feedback to improve their products and services. Most rely on questionnaires, but the International Olympic Committee (IOC) used a more creative method. With assistance from triple gold medal winner Usain Bolt, the general public was invited to submit answers to the question, “What is the future of the Olympics?” in the form of videos posted on YouTube. In exchange for their efforts, people submitting the two best entries won trips to Copenhagen, Denmark, where they were invited to share their ideas in person at a meeting of the Olympic Congress, where discussions are held about how to improve the Olympic Games. A FP P ho to
- 869. /V al er y H ac he /F ile s/ N ew sc om . CHAPTER 7 • MOTIVATION IN ORGANIZATIONS 273 Summary and Review of Learning Objectives 1. Define motivation and explain its importance in the field of organizational behavior. Motivation is concerned with the set of processes that arouse, direct, and maintain behavior toward a goal. It is not equivalent to job performance, but is one of several determinants of job performance. Today’s work ethic motivates people to seek
- 870. interesting and challenging jobs, instead of just money. 2. Describe the motivational-fit approach and what it suggests about how to improve motivation in organizations. The motivational-fit approach highlights the importance of motivational traits (achieve- ment and anxiety) and motivational skills (emotion control and motivation control) in work motivation. This framework specifies that people will be most highly motivated when these traits and skills best fit the requirements of the job and the organization in which someone works. 3. Identify and explain the conditions through which goal setting can be used to improve job performance. Goal-setting theory claims that an assigned goal influences a person’s beliefs about being able to perform a task (referred to as self-efficacy) and his or her personal goals. Both of these factors, in turn, influence performance. Research has shown that people will improve their performance when specific, acceptably difficult goals are set and feedback about task performance is provided. The task of selecting goals that are acceptable to employees is facilitated by allowing employees to participate in the goal- setting process. 4. Describe equity theory and explain how it may be applied to motivating people in organizations. Equity theory claims that people desire to attain an equitable
- 871. balance between the ratios of their work rewards (outcomes) and their job contributions (inputs) and the corresponding ratios of comparison to others. Inequitable states of overpayment inequity and underpayment inequity are undesirable, motivating people to try to attain equitable conditions. Responses to inequity may be either behavioral (e.g., raising or lowering one’s performance) or psycholog- ical (e.g., thinking differently about work contributions). To avoid negative reactions (e.g., strikes, reduced work, resignations), overpayment inequity and underpayment inequity should be avoided. It also is useful to explain how outcomes and inputs were determined in an open and honest fashion. 5. Describe expectancy theory and how it may be applied in organizations. Expectancy theory recognizes that motivation is the product of a person’s beliefs about expectancy (effort will lead to performance), instrumentality (performance will result in reward), and valence (the perceived value of the rewards). In conjunction with skills, abilities, role perceptions, and opportunities, motivation contributes to job performance. Expectancy theory suggests that motivation may be enhanced by linking rewards to per- formance (as in pay-for-performance plans) and by administering rewards that are highly valued (as may be done using cafeteria-style benefit plans). 6. Distinguish among job enlargement, job enrichment and the job characteristics model as techniques for motivating employees.
- 872. Motivation may be enhanced at the organizational level by designing or redesigning jobs in certain ways. Popular approaches include job enlargement (performing more tasks at the same level) and job enrichment (giving people greater responsibility and control over their jobs). A more sophisticated approach, the job characteristics model, identifies the specific job dimensions that should be enriched (skill variety, task identity, task significance, auton- omy, and feedback), and relates these to the critical psychological states influenced by including these dimensions on a job. These psychological states will, in turn, lead to certain beneficial outcomes for both individual employees (e.g., job satisfaction) and the organiza- tion (e.g., reduced absenteeism and turnover). Jobs may be designed to enhance motivation by combining tasks, opening feedback channels, establishing client relationships, and load- ing jobs vertically (i.e., enhancing responsibility for one’s work). 274 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION Points to Ponder Questions for Review 1. What are Maslow’s five categories of needs and how might each be satisfied on the job? 2. What particular traits and skills are most important when it comes to enhancing motivation by promoting
- 873. fit with one’s job and organization? 3. What rules should be followed when setting goals to motivate workers? 4. What does equity theory say about the role of money as a motivator? 5. What are the basic components of expectancy theory, and how are they combined to predict performance? 6. How, specifically, can jobs be designed in an effort to enhance motivation? Experiential Questions 1. What experiences have you had in setting personal goals (e.g., for saving money, for losing weight, for getting a certain job)? Which rules of goal setting did you follow? Which rules might you have followed to be even more successful? 2. Think of a time in which you felt inequitably under- paid by your employer or manager. How did it make you feel, and how did you respond as a result? 3. Think of the job you currently do, or one that you have done recently. Describe two specific things that could be done to redesign that job so that employees will be more motivated to perform it. Questions to Analyze 1. An employee claims to be trying very hard but is not attaining acceptable levels of job performance.
- 874. According to expectancy theory, what factors would contribute to such effort? What additional factors, besides motivation, contribute to task performance? 2. Money is not the only source of work motivation, but it plays a key role. Explain the specific role of money as a motivator in each of the theories of motivation presented in this chapter. 3. Imagine that you are devising an incentive plan for your company. What particular guidelines will you follow to ensure that it is effective? What problems do you anticipate as the plan takes effect? Experiencing OB Individual Exercise Are You Equitably Paid? The desire to be paid equitably is very strong among people in the workplace. Too often, however, employees believe that they are inequitably paid—either overpaid or underpaid. The following questionnaire will help you assess how you stand in this regard. Directions Respond to each of the following questions by selecting the one response that most accurately describes your situation as you believe it to be. 1. Compared to equally experienced others doing the same job as me in my company, I am: a. paid less b. paid about the same c. paid more
- 875. 2. Given my training and experience, I would say that my pay is: a. too low b. about right c. too high 3. Considering how much effort I put into my job, I would say that my pay is: a. too low b. about right c. too high 4. Over the years, my level of pay has: a. not kept up with my accomplishments b. kept up with my accomplishments c. exceeded my accomplishments CHAPTER 7 • MOTIVATION IN ORGANIZATIONS 275 5. So far as I know, people doing the same job as me at other companies are paid: a. more than me b. about the same as me c. less than me Scoring 1. Give yourself 1 point each time you answer with response “a.” These responses reflect underpayment. The more points you have in this category, the more underpaid you feel. 2. Give yourself 1 point each time you answer with response “b.” These responses reflect
- 876. equitable payment. The more points you have in this category, the more equitably paid you feel. 3. Give yourself 1 point each time you answer with response “c.” These responses reflect overpayment. The more points you have in this category, the more overpaid you feel. Questions for Discussion 1. What do your responses to this questionnaire reveal about the perceived equitableness of your pay? Are you overpaid or underpaid? Does your score confirm what you believe about the fairness of your pay? 2. If you are equitably paid, do you feel satisfied on the job? If you are inequitably paid (either overpaid or underpaid), do you feel dissatisfied on the job? 3. On occasions in which you felt inequitably underpaid, how did you respond? Did you lower your inputs? If so, how? Did you attempt to raise your outcomes? If so, how? Group Exercise Does Goal Setting Really Work? Demonstrate It for Yourself Specific, difficult goals tend to enhance task performance. The following exercise is designed to help you demonstrate this effect for yourself. All you need is a class of students willing to participate and a few simple supplies. Directions
- 877. 1. Select a page of text from a book and make several photocopies. Carefully count the words and number each word on one of the copies. This will be your score sheet. 2. Find another class of 30 or more students who do not know anything about goal setting. (We do not want their knowledge of the phenomenon to bias the results.) On a random basis, divide the students into three equal-size groups. 3. Ask the students in the first group—the “baseline” group—to copy as much of the text as they can onto another piece of paper, and give them exactly one minute to do so. Direct them to work quickly. Using the score sheet created in step 1, identify the highest number of words copied by any one of the students and then multiply this number by 2. This will be the specific, difficult goal level. 4. Ask the students in the second group—the “specific goal” group—to copy the number of words on the same printed page for exactly one minute. Tell them to try to reach the specific goal number identified in step 3. 5. Repeat this process with the third group—the “do your best” group—but instead of giving them a specific goal, direct them to “try to do your best at this task.” 6. Compute the average number of words copied in the “difficult goal” group and the “do your best” group. Have your instructor compute the appropriate
- 878. statistical test (a t-test, in this case) to determine the statistical significance of this difference in performance levels. Questions for Discussion 1. Was there a statistically significant difference between the performance levels of the two groups? If so, did students in the “specific goal” group outperform those in the “do your best” group, as expected? What does this reveal about the effectiveness of goal setting? 2. If the predicted findings were not supported, why do you suppose this happened? What was it about the procedure that may have led to this failure? Was the specific goal C as e in P oi n t 276 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION (i.e., twice the fastest speed in the “baseline” group) too high, thus making the goal
- 879. unreachable? Alternatively, was it too low, thus making the specific goal too easy? 3. What do you think would happen if the goal was lowered, thus making it easier, or raised, thus making it more difficult? 4. Do you think that providing feedback about goal attainment (e.g., someone counting the number of words copied and calling this out to the performers as they worked) would have helped? 5. For what other kinds of tasks do you believe goal setting may be effective? Specifically, do you believe that goal setting can improve your own performance on something? Explain this possibility. Practicing OB Motivating Nurses at a Hospital You have been hired by the director of a large suburban hos- pital to help resolve problems of poor morale that have been plaguing the nursing staff. Unfortunately, the nurses don’t find their jobs particularly interesting. As a result, turnover and absenteeism have been high, and patient care is at an all-time low. The problem is apparent to everyone; both doctors and patients have been complaining. Answer the following questions relevant to this situation based on the material in this chapter. 1. After interviewing the nurses, you found that they believed that no one cared how well they were doing. What theories could help explain this problem?
- 880. Applying these approaches, what would you recom- mend the hospital should do to resolve this problem? 2. Hospital officials tell you that the nurses are well paid, adding to your surprise about the low morale. However, your interviews reveal that the nurses them- selves feel otherwise. Why might this occur and why is this a problem? What could be done to help? 3. “I’m bored with my job,” one highly experienced nurse tells you, and you believe she speaks for many within the hospital. What could be done to make their jobs more interesting to those who perform them? What are the limitations of your plan? Would it work equally well for other members of the hospital staff (e.g., clerical and janitorial employees)? ■ Google: Searching for a Better Way to Work Google, the immensely popular Web search engine, has been touted as “the closest thing the Web has to an ulti- mate answer machine.” Although this is debatable, of course, it is far more difficult to deny that the company is, in fact, the closest thing we have to an ultimate example of business success. Founded by two computer science gradu- ate students at Stanford University in the late 1990s, Larry Page and Sergy Brin, Google has grown astronomically. In late 1998, the search engine had 10,000 queries per day, a figure that grew to 300 million by 2009. More than just a search engine, Google now has 12 product lines, including its highly regarded Android cell phone. On the heels of these accomplishments, financial success likewise has been impressive. Only four months after the initial public offer- ing of Google stock in August 2004, its price more than doubled and has risen much higher ever since.
- 881. Although Google is in the technology business, its founders acknowledge that the company’s greatest chal- lenges lie more with people than computers. At first, Page and Brin worked with just a handful of employees out of a converted garage, but today the company has some 10,000 employees in its sprawling headquarters, known as the “Googleplex,” in Mountain View, California. With such rapid growth, how can Page and Brin ensure that their many new employees share their passion for innovation and work hard to achieve it? Brin explains his strategy quite simply: “To have a good lifestyle, we have to have a good lifestyle at work.” Just about all the people who work at Google, from the most advanced computer engineers to the lowest level employees, are hand selected (or, at least, approved) by Page and Brin. They look for people who are inspired not by money, but by love of the work they do. After all, (Continued ) CHAPTER 7 • MOTIVATION IN ORGANIZATIONS 277 they are expected to work long hours and to achieve unparalleled levels of excellence, to come up with “the next big thing.” To make this happen, they go out of their way to make Google a great place to work. As Brin put it, “Work should be challenging, and the challenge should be fun.” With this in mind, Page and Brin have taken strides to ensure that there’s a comfortable and friendly atmosphere at Google. For example, there is no dress code; you dress however you wish to be comfortable (as stated in the com-
- 882. pany’s philosophy, “You can be serious without a suit”). People even can bring their dogs to work, keeping them company throughout the day. To help everyone stay fit and to build a spirit of teamwork, there’s also a very strong spirit of play at Google; at noon each day there’s a volleyball game outside. Google puts users first when it comes to online ser- vice, and it puts employees first when it comes to daily working life. Employees are treated very well. A fantastic on-site cafeteria serves gourmet meals of every kind, catering to a variety of dietary needs and preferences— all absolutely free of charge. According to CEO Eric E. Schmidt, this is just good business because it keeps peo- ple at their desks instead of leaving the building to eat. The company also invests in its employees in another interesting way. Every year, the company takes all its employees on an all-expenses-paid ski trip. Again, this is seen as good for the business because it promotes the spirit of càmàràderie that’s necessary in their work envi- ronment, in which the sharing of ideas is critical. This is not to say that Google is lavish or wasteful. Although Page and Brin each made $6 billion when the com- pany went public, and 1,000 employees also became million- aires, it is not money that keeps people going at Google. Page and Brin still share a small office and live modestly, as do most of their employees. Although they have the means to be living extremely well (and surely will do so someday), right now, the thing that keeps everyone going at Google is their zeal to use computer technology to change the world. It’s all about innovation, and not getting rich quick. Questions for Discussion
- 883. 1. What does Google do to motivate its employees? 2. Based on the material in this chapter, what recommen- dations would you make to Google about additional things it could do to enhance motivation? 3. What particular problems or limitations do you envision in the recommendations you offered in answering the previous question? For example, under what conditions are they likely to be effective? Would they work for everyone? Part 3 V id eo C ases According to Kathy Hannan, diversity is essential to the cul- ture at KPMG. Hannan heads both the company’s Women’s Advisory Board and the Diversity Advisory Board. In fact, KPMG has established a number of other advisory boards, including one for African Americans, one for Latinos, and one for gay, lesbian, bisexual, and transgender employees. KPMG’s commitment to a more diverse workforce is also evident in its efforts to recruit and hire minorities. The company has implemented several programs designed to attract students to the firm with the expectation that they could become future hires. These programs include intern- ships and other kinds of educational opportunities. Furthermore, KPMG believes that a diverse workforce attracts more minority workers. Nigel Franklin of KPMG’s African American Network agrees. He notes that prospec-
- 884. tive hires want to see other people like themselves in an organization so that they know that there is someone to relate to—someone who has traveled their path already. Kathy Hannan says that the Women’s Advisory Board is actively focusing on retaining young women; to that end, she has established goals of how the firm should look from a gender perspective and created a network that acts as a forum for women to reach out to each other. Kristen Johnston of KPMG’s Gay, Lesbian, Bisexual and Transgender Network believes that education is the key to a more diverse organization. Johnston says that is impor- tant to help people understand differences and accept them. She feels that there is a long road ahead, but is opti- mistic that, at some point in time, stereotypes and preju- dices will be a thing of the past. Hannan agrees, and believes that one day there no longer will be a need for the different networks to support the various groups. Until then, though, they perform a valuable role. Discussion Questions 1. Which of the major training approaches to diversity management as discussed in Chapter 6 is KPMG following? 2. How does Kristen Johnston of KPMG’s Gay, Lesbian, Bisexual and Transgender Network hope the group will help her avoid the prejudice and discrimination described in Chapter 6 that is found commonly in many organizations? 3. Which of the guidelines presented in Chapter 6 for making diversity programs successful is KPMG following?
- 885. ■ Diversity at KPMG (Continued ) 278 PART 3 • THE INDIVIDUAL IN THE ORGANIZATION ■ Motivating Employees at KPMG KPMG believes that it is important for employees to feel val- ued and motivated to work. Just a few years ago, however, this was not the case. Workers at the company were not engaged in their jobs, turnover was high, and overall performance was suffering as a result. KPMG recognized that a fundamental shift was needed if it were to maintain its track record of success. KPMG identified four things that were important to motivating employees and improving job performance. First, employees wanted to work for a winning organiza- tion of which they could be proud. Second, workers wanted to have the resources and information necessary to allow them to achieve their objectives in a timely fashion. Third, they wanted to be treated well, and fourth, they wanted to enjoy their work. This knowledge, together with the commitment of the CEO and senior management, allowed the company to make changes in several areas. Today, KPMG workers enjoy better compensation packages, improved work/family arrangements, and more career development opportunities. The changes appear to have been successful. Employee turnover at KPMG has dropped, and individuals at all levels are more committed to their jobs and to the company as a whole. Discussion Questions
- 886. 1. What would equity theory (as presented in Chapter 7) imply about employee satisfaction and performance at KPMG? 2. What does expectancy theory (as presented in Chapter 7) suggest about the habits of workers at KPMG? 3. How does KPMG go about meeting the varied needs of its employees? Chapter Outline � Groups at Work: Their Basic Nature � The Formation of Groups � The Structural Dynamics of Work Groups � Individual Performance in Groups � Teams: Special Kinds of Groups � Effective Team Performance � Developing Successful Teams Learning Objectives After reading this chapter, you should be able to: 1. Define what is meant by a group and identify different types of groups operating within
- 887. organizations. 2. Describe the importance of roles, norms, status, and cohesiveness within organizations. 3. Explain how individual performance in groups is affected by the presence of others (social facilitation), and the number of others with whom one is working (social loafing). 4. Define what teams are and describe the various types of teams that exist in organizations. 5. Describe the effectiveness of teams in organizations. 6. Explain the factors responsible for the failure of some teams to operate as effectively as possible and steps that can be taken to build successful teams. P A R T Group Dynamics 8CHAPTE R 4 Group Dynamics and Work Teams 279 280 PART 4 • GROUP DYNAMICS
- 888. Preview Case ■ Making a “Better Place” One Electric Vehicle at a Time Can a tiny company change the world? Although it’sunlikely, it’s possible that if its members work together in a carefully coordinated and focused fashion they just might make a difference. And this is precisely what Shai Agassi intends to do. As founder and CEO of Better Place, he works with governments and auto manu- facturers to develop personal transportation systems that eliminate our dependence on oil and the environmental and economic damage that comes with it. His vehicle of choice to make the earth a “better place” is the electric vehicle (EV). In 2010, Agassi opened the company’s first EV demon- stration center. It’s housed in a giant refurbished oil tank, an ironic symbol that incorporates the company’s belief in transitioning to electric transportation. Only three years earlier, he launched the company with $200 million in venture capital funds. Better Place’s business plan is straightforward: Pay for the transportation you need as a sustainable service. First, automakers have to replace their gasoline-guzzling engines with powerful, but quiet and smooth-running electric motors powered by batteries. Then, drivers pay a fee to access a network of charging spots and places where they can replace their batteries. Better Place operates the electric recharge grid that makes this possible. According to Chairman of the Board Idan Ofer, this strategy benefits everyone. Drivers benefit by getting to enjoy their cars in cleaner environments. The auto indus- try benefits by getting to service a brand new market segment. Energy companies benefit by getting to intro- duce new technologies. The world’s nations benefit by
- 889. aligning economic and environmental interests. And, finally, of course, our planet benefits by being spared the pollution caused by the internal combustion engine. Getting all this to work, as you might imagine, requires great teamwork, and Better Place has this covered. Aliza Peleg, vice president of planning and operations, works carefully with Karen Alter, vice president of marketing, to bring the company’s ideas to international auto companies. They then hand off the plans to Agassi, who comes in to finalize the deal. It’s like a relay race—and one they seem to be win- ning: Within the company’s first six months, deals poured in. Soon after the launch, Renault-Nissan signed on with Better Place to develop a line of battery-powered electric cars. Then, in January 2008, with the help of Moshe Kaplinsky, CEO of Better Place Israel, that nation became the first in the world to declare a plan for oil independ- ence by 2020, using solar-powered electric recharge grids to power EVs. Only two months later, in March 2008, Denmark came onboard, working with Better Place to develop a recharge grid powered by energy from wind turbines. Since then, the United States, Canada, Australia, and Japan have gotten involved. And with an infusion of $350 million in financing in 2010, additional growth is in the cards. If there’s been any one problem with EVs thus far, it’s that they’re actually too quiet. This makes the driv- ing less than gratifying and takes away the auditory cues that blind pedestrians rely on when crossing the street. Better Place has a solution. Agassi is planning on “drivetones,” which are similar to ringtones for your
- 890. phone, that can be downloaded and controlled through a dashboard switch. So, even if you don’t have a Ferrari, with a little digital wizardry, your electric car can at least sound like one. To return to our opening question, it’s hard to say whether Better Place will ever change the world, but it’s clear that Agassi and his team would be delighted to save it from pollution, thereby making it truly a better place. And this, after all, is something special. What’s going on at Better Place is, no doubt, quite amazing. Few entrepreneurs can pull off the kind of successes that Agassi has enjoyed, creating an entirely new product that promises to revolutionize the world in such a short time. But he clearly isn’t doing it alone. Instead, he is part of a hard-working team of talented individuals who share his vision and are willing to work with one another to make things happen. Indeed, work teams are extremely popular today in all kinds of organizations—and, in view of Better Place’s experiences, there’s little wonder why. In the second half of the chapter, we will take a look at the nature of teams in the modern workplace. Acknowledging that they don’t always operate as successfully as the team led by Agassi, we will describe the general effectiveness of teams and outline steps that can be taken to make them as productive as possible. To help you understand the underlying factors that contribute to team success and failure, we first must examine the basic nature of groups in general. As you know, a great deal of the work performed in organizations is done by people working together
- 891. in groups. In view of this, it makes CHAPTER 8 • GROUP DYNAMICS AND WORK TEAMS 281 Nonmembers Members GROUP Two or more people in social interaction Stable structure Members share common goals Members perceive themselves as being a group FIGURE 8.1 A Group: Its Defining Characteristics To be a group, the four criteria specified here must be met. sense to understand the types of groups that exist and the variables governing the interrelation- ships between them and individuals—commonly referred to as
- 892. group dynamics. The topic of group dynamics focuses on the nature of groups—the variables governing their formation and development, their structure, and their interrelationships with individuals, other groups, and the organizations within which they exist.1 Because groups exist in all types of social settings, the study of group dynamics has a long history in the social sciences—including OB.2 In the first half of this chapter, we will draw on this work. Specifically, we will describe the nature of groups by defining what groups are, identifying various types of groups and why they form, explaining the various stages through which groups develop, and describing the dynamics of the way groups are structured. Following this, we shift our attention to how effectively groups operate. Specifically, we will describe how people are affected by the presence of others, and the tendency for people to withhold their individual performance under certain conditions. Finally, in the second half of this chapter, we focus on teams, special types of groups that are in widespread use in today’s organizations. After differentiating between groups and teams, we describe the factors that make teams effective along with ways to promote team success in the workplace. Groups at Work: Their Basic Nature To understand the dynamics of groups and their influence on individual and organizational func- tioning, we begin by addressing three fundamental issues— namely, what groups are, the types of groups that exist, and why people join groups.
- 893. What Is a Group? Imagine three people waiting in a checkout line at a supermarket. Now, compare them to the board of directors of a large corporation. Which collection of individuals would you consider to be a “group”? Although in our everyday language we may refer to the people waiting in line as a group, they clearly are not a group in the same sense as the members of the board. Obviously, a group is more than simply a collection of people. But what exactly is it that makes a group a group? Formally, social scientists define a group as a collection of two or more interacting individu- als with a stable pattern of relationships between them who share common goals and who perceive themselves as being a group.3 Examining this definition more closely, we summarize the four key characteristics of groups in Figure 8.1. To be considered a group, the collection of people in ques- tion must satisfy all four of these criteria. group dynamics Factors governing a group’s formation and development, structure, and interrelationships with individuals, other groups, and the organizations within which it exists. group A collection of two or more interacting individuals who
- 894. maintain stable patterns of relationships, share common goals, and perceive themselves as being a group. 282 PART 4 • GROUP DYNAMICS FIGURE 8.2 Is This a Group? A collection of people waiting in line to buy an Apple iPad is not considered a group. Although the people may talk to one another and share the goal of wanting to get the latest hot product, they are not considered a group. Membership is unstable as different people are always entering and leaving the line. In addition, the individuals don’t have any sense of belonging to a coherent unit and, as a result, don’t think of themselves as belonging to a group. SOCIAL INTERACTION. One of the most obvious characteristics of groups is that they are com- posed of two or more people in social interaction. In other words, the members of a group must have some influence on one another. The interaction between the parties may be either verbal (such as sharing strategies for a corporate takeover) or nonverbal (such as exchanging smiles in the hallway), but the parties must have some impact on one another to be considered a group. STABILITY. Groups also must possess a relatively stable structure. Although groups can change,
- 895. and often do, they must have some stable relationships that keep members together and function- ing as a unit. A collection of individuals that constantly changes (e.g., the people inside an office waiting room at any given time) may not be considered a group, for example, because the set of people involved is unstable, changing all the time. COMMON INTERESTS OR GOALS. A third characteristic of groups is that members share common interests or goals. For example, members of a chess club constitute a group that is sustained by the mutual interest of members. Some groups form because members with common interests help each other achieve a mutual goal. For example, the owners and employees of a sewing co-op constitute a group formed around a common interest in sewing and the common goal of making money. RECOGNITION AS BEING A GROUP. Finally, to be a group, the individuals involved must perceive themselves as a group. Groups are composed of people who recognize one another as members of their group and can distinguish these individuals from nonmembers. The members of a corpo- rate finance committee or a camera club, for example, know who is in their group and who is not. In contrast, shoppers in a checkout line probably don’t think of each other as being members of a group. Although they stand physically close to one another and may have passing conversa- tions, they have little in common (except, perhaps, a shared interest in reaching the end of the line) and fail to identify with the others in the line. By defining groups in terms of these four characteristics, we
- 896. have identified a group as a very special collection of individuals (see Figure 8.2). As we shall see, these characteristics are C ar l D e So uz a/ A FP /G et ty I m ag es /N ew sc om .
- 897. CHAPTER 8 • GROUP DYNAMICS AND WORK TEAMS 283 Formal groups Informal groups Command groups Task groups Interest groups Friendship groups Groups FIGURE 8.3 Varieties of Groups in Organizations Within organizations one may find formal groups (such as command groups and task groups) and informal groups (such as interest groups and friendship groups). responsible for the important effects groups have on organizational behavior. To better under- stand these effects, we now review the wide variety of groups that operate within organizations.
- 898. What Types of Groups Exist? What do the following have in common: a military combat unit, three couples getting together for dinner, the board of directors of a large corporation, and the three-person cockpit crew of a commercial airliner? As you probably guessed, the answer is that they are all groups. But, of course, they are very different kinds of groups, ones people join for different reasons. FORMAL GROUPS. The most basic way of identifying types of groups is to distinguish between formal groups and informal groups (see Figure 8.3). Formal groups are created by an organiza- tion and are designed intentionally to direct members toward some important organizational goal. One type of formal group is referred to as a command group—a group created by connec- tions between individuals who are a formal part of the organization (i.e., those who legitimately can give orders to others). For example, a command group may be formed by the vice president of marketing who gathers together the regional marketing directors from around the country to share ideas about a new national advertising campaign. The point is that command groups are determined by the organization’s rules regarding who reports to whom, and usually consist of a supervisor and his or her subordinates. A formal organizational group also may be formed around some specific task. Such a group is referred to as a task group. Unlike command groups, a task group is composed of individuals with some special interest or expertise in a specific area regardless of their posi-
- 899. tions in the organizational hierarchy. For example, a company may have a committee on equal employment opportunities whose members monitor the fair hiring practices of the organiza- tion. It may be composed of personnel specialists, corporate vice presidents, and workers from the shop floor. Whether they are permanent committees, known as standing committees or temporary ones formed for special purposes