PREFACE Welcome to the emerging knowledge and practice of organizational behavior! Social networks and virtual teams are replacing committee meetings. Knowledge is replacing infrastructure. Values and selfleadership are replacing command-and-control management. Companies are looking for employees with emotional intelligence and team competencies, not just technical smarts. Diversity and globalization have become challenges as well as competitive opportunities for organizations. Co-workers aren’t down the hall; they’re at the other end of an Internet connection located somewhere else on the planet. Organizational Behavior, Fifth Edition, is written in the context of these emerging workplace realities. This edition explains how emotions guide employee motivation, attitudes, and decisions; how selfconcept influences employee motivation and behavior, team cohesion, and leadership; how social networks are gaining importance as a source of personal power and organizational effectiveness; and how appreciative inquiry has become an important strategy for changing organizations. This book also presents the new reality that organizational behavior is not just for managers; it is relevant and useful to anyone who works in and around organizations.

LINKING THEORY WITH REALITY Every chapter of Organizational Behavior, Fifth Edition, is filled with examples that make OB knowledge more meaningful and reflect the relevance and excitement of this field. These stories about real people and organizations translate academic theories into relevant knowledge. For example, you will read how Whole Foods Market and La-Z-Boy have discovered the advantages of teamwork; how Sony Europe has improved employee motivation through the positive organizational behavior practice of strengths-based feedback; how Raytheon and other companies have mapped out informal social networks throughout the organization; and how Ernst & Young, Procter & Gamble, and several other firms are sending employees to overseas social responsibility assignments to improve their global mindset and other perceptual capabilities. These real-life stories appear in many forms. Every chapter of Organizational Behavior, Fifth Edition, offers several detailed photo captions and many more in-text anecdotes. Lengthier stories are distinguished in a feature we call Connections, because it “connects” OB concepts with real organizational incidents. Case studies in each chapter connect OB concepts to the emerging workplace realities. These stories provide representation across the United States and around the planet. They also cover a wide range of industries—from software to government, and from small businesses to the Fortune 500.

GLOBAL ORIENTATION One of the first things you might notice about this book is its strong global orientation. This goes beyond the traditional practice of describing how U.S. companies operate in other parts of the world.

xii Preface Organizational Behavior, Fifth Edition, takes a truly global approach by illustrating how organizational behavior concepts and practices are relevant to companies in every part of the world. For example, you will read how Mina Ishiwatari faced resistance to change as she transformed sleepy Tokyo-based Hoppy Beverage Co. into a high-profile brand; how Volkswagen and Porsche executives are wrapped up in high-stakes conflict over how Volkswagen should be run; how Air New Zealand CEO Rob Fyfe relies on a hands-on approach to improve his and others’ perceptions; how Sweden’s Svenska Handelsbanken relies on employee empowerment and organizational rewards rather than centralized budgets to manage the business; and how Mott MacDonald’s oil and gas team improves emotions and camaraderie through desert safari treks in Abu Dhabi. This global orientation is also apparent in our discussion of many organizational behavior topics. The first chapter of Organizational Behavior, Fifth Edition, introduces the concept of globalization. Global issues are then highlighted throughout the book, such as cross-cultural values and ethics, development of a global mindset, job satisfaction and display of emotions in different societies, crosscultural issues in the success of self-directed work teams, problems with cross-cultural communication, cultural values and expectations as a factor in preferred influence tactics, the handling of conflict differently across cultures, and preferred leadership styles across cultures.

CONTEMPORARY THEORY FOUNDATION Vivid real-world examples and practices are only valuable if they are connected to good theory. Organizational Behavior has developed a reputation for its solid foundation of contemporary and classic research and writing. You can see this in the references. Each chapter is based on dozens of articles, books, and other sources. The most recent literature receives thorough coverage, resulting in what we believe is the most up-to-date organizational behavior textbook available. These references also reveal that we reach out to marketing, information management, human resource management, and other disciplines for new ideas. At the same time, this textbook is written for students, not the scholars whose work is cited. So, although this book provides new knowledge and its practical implications, it rarely names researchers and their university affiliations. It focuses on organizational behavior knowledge rather than “who’s who” in the field. One of the driving forces for writing Organizational Behavior was to provide a conduit whereby emerging OB knowledge more quickly reaches students, practitioners, and fellow scholars. This objective is so important that we state it in the subtitle of this book. To its credit, Organizational Behavior was the first textbook to discuss workplace emotions, social identity theory, four-drive theory, appreciative inquiry, affective events theory (but without the jargon), somatic marker theory (also without the jargon), virtual teams, future-search events, Schwartz’s value model, resilience, employee engagement, learning orientation, workaholism, and several other groundbreaking topics. This edition introduces additional emerging OB concepts and practices, including social networking communication, the competencies of effective team members, exceptions to media richness theory, the importance of self-concept in organizational behavior, the globally integrated enterprise, the global mindset, and strengths-based feedback.

ORGANIZATIONAL BEHAVIOR KNOWLEDGE FOR EVERYONE Another distinctive feature of Organizational Behavior, Fifth Edition, is that it is written for everyone in organizations, not just managers. The philosophy of this book is that everyone who works in and around organizations needs to understand and make use of organizational behavior knowledge. The

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contemporary reality is that people throughout the organization—systems analysts, production employees, accounting professionals—are assuming more responsibilities as companies remove layers of management and give the rest of us more autonomy over our work. This book helps everyone to make sense of organizational behavior and provides the conceptual tools needed to work more effectively in the workplace.

ACTIVE LEARNING AND CRITICAL THINKING SUPPORT We teach organizational behavior, so we understand how important it is to use a textbook that offers deep support for active learning and critical thinking. The fact that business school accreditation associations also emphasize the importance of the learning experience further reinforces our attention to classroom activities. Organizational Behavior, Fifth Edition, includes more than two dozen case studies in various forms and levels of complexity. It offers three dozen self-assessments, most of which have received construct validation. This book is also a rich resource for in-class activities, some of which are not available in other organizational behavior textbooks, such as “Test Your Knowledge of Personality,” “Where in the World Are We?” and “Cross-Cultural Communication Game.”

CHANGES TO THE FIFTH EDITION Organizational Behavior, Fifth Edition, has benefited from reviews by several dozen organizational behavior teachers and researchers in several countries over the past two years. The most significant structural change is that we have reduced the book to 15 chapters so that it more closely parallels the number of weeks in a typical OB course. This edition also continues to update current knowledge in every chapter and provides fresh examples to illustrate theories and concepts. The most notable improvements to this edition are described as follows:

Chapter 1: Organizational Behavior—Introduction, Trends and Challenges. This chapter has been substantially revised and updated. It introduces four perspectives of organizational effectiveness (the ultimate dependent variable in OB), so students now have an excellent macro-OB foundation for topics throughout this book. The organizational effectiveness section also provides better organization for open systems, organizational learning, high performance work practices, and values and ethics. The five types of individual behavior are also described in this chapter as a natural micro-OB flow from the organizational effectiveness discussion. The topic of workforce diversity now distinguishes surface from deep-level diversity. Discussion of the systematic research anchor now describes evidence-based management. We also look into OB challenges in the context of mergers and acquisitions, global economic meltdown, green management, cluster concept, inclusive growth, and focus on innovation for competitiveness, work-life balance focusing on different time zone and rapid growth organizations. The changing nature of work is also explained as is the updation on CSR in India/CSR awards 2010 and international status of CSR in management schools. The Indian perspective of OB, namely, replication, disenchantment and integration as well as the vedantic perspective (adhyatmic to atmic) has been explained for better understanding.

Chapter 2: Individual Behavior, Personality, and Values. This edition provides important new knowledge about self-concept, including its main components (self-enhancement, self-verification, self-evaluation, and social identity) and their relevance for organizational behavior. This edition also has a rewritten and expanded discussion of personality in line with the topic’s increasing

xiv Preface importance in OB. The Indian perspective on moral self, dimensions of the self, culture construction of self, Indian mindset, changing perspective of values in Indian youth have been added. The impact of global meltdown as well as ethical values and behavior in its context on employees has been explained. The addition of Jungian personality theory of personality in organizations lends solidarity to the concept of the individual. The MARS model now includes a fuller conceptual background.

Chapter 3: Perception and Learning in Organizations. This edition updates the section on selective attention, organization, and interpretation based on the rapidly developing research on this topic. It also introduces the increasingly popular concept of global mindset in the context of perception and learning. The chapter adds discussion about false-consensus effect as well as the implicit association test. It also re-organizes into one section the discussion about practices that minimize perceptual problems. The concept of glass ceiling and the awareness of perceptual biases along with emotional display across cultures and an update on emotional intelligence provide a detailed explanation. Positive organizational behavior, which was introduced in previous editions, is described in this chapter and mentioned again in subsequent chapters of this book.

Chapter 4: Workplace Emotions, Attitudes, and Stress. This chapter now incorporates the topic of stress, which is closely related to workplace emotions. The impact of stress on the physical, mental well-being of the employees as well as predisposition to stress is also discussed. It continues to present a clearer explanation of the dual (cognitive and emotional) processes of attitudes and provides a fuller understanding about the dimensions of emotional intelligence. Wellness programs for employees have also been explored. This chapter also discusses “shock events” in job satisfaction.

Chapter 5: Foundations of Employee Motivation. The previous edition was apparently the first OB book to discuss employee engagement. This edition moves the topic to this chapter, so employee engagement is more closely connected to employee motivation as well as the MARS model. How managers design motivating jobs and how companies use Physical Environment as a motivator for their employees is also explained here. Balanced scorecard has also been moved to this chapter, because of its emphasis on goal setting rather than rewards. The chapter also distinguishes drives from needs and explains how drives and emotions are the prime movers of human motivation. It formulates the Indian approaches to motivation—nishkam karma, daan karma, self-actualization, passion to learn, innovation-jugad (need to achieve with less or alternate resources). It describes Maslow’s contribution to the field of human motivation. Organizational Behavior was the first OB textbook to introduce four-drive theory, and this edition further refines the description of that model and its practical implications. The need for autonomy—Entrepreneurship/Intrapreneurship and Social Entrepreneurship and Networking has also been analyzed. Finally, this chapter introduces the positive organizational behavior concept and practice called strengths-based feedback.

Chapter 6: Applied Performance Practices. This edition adds emerging information about the situational and personal influences on self-leadership as well as self-leadership contingencies. It also updates information about the meaning of money and reward practices.

Chapter 7: Decision Making and Creativity. This edition introduces three of the decision heuristic biases discovered and popularized by Kahneman and Tversky. The chapter also revises and updates the discussion of problems with problem identification, the section on the influence of emotions on

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making choices, and the section on characteristics of creative people. It also has a more dedicated overview of the rational choice concept of subjective expected utility, implementation of decisions, and role of technology in decision-making and creativity and innovation.

Chapter 8: Team Dynamics. This edition combines the two chapters on teams found in previous editions. It summarizes types of teams and more fully discusses the potential benefits and problems with teams. Issues arising in multi-cultural teams have also been discussed. Furthermore, this edition introduces new information on the competencies of effective team members, revises the writing on self-directed teams and virtual teams, and provides emerging knowledge about two key processes in team development: team identity and team competence.

Chapter 9: Communicating in Teams and Organizations. The previous edition was apparently the first OB textbook to discuss the role of blogs and wikis in organizations. This edition continues this leadership with new information about social networking communication. Other new knowledge in this chapter include the topic of multi-communicating, social acceptance as a contingency in the selection of communication channels, conditions that offset the effects of media richness, social acceptance, social media and its impact and four factors that influence the effectiveness of the communication process. (i.e. encoding and decoding)

Chapter 10: Power and Influence in the Workplace. This chapter further develops the section on social networking as a source of power. It also adds a separate section on the consequences of power, issues and challenges and a cultural perspective.

Chapter 11: Conflict and Negotiation in the Workplace. This edition offers a more detailed look at the contingencies of conflict handling. It also revises and updates the development of thinking about whether conflict is good or bad. This description includes emerging model of constructive versus relationship conflict and the ways to allow the former while suppressing the latter. The discussion of negotiation now includes more specific advice regarding making concessions as well as the emerging views of constructive and relationship conflict.

Chapter 12: Leadership in Organizational Settings. In this edition, the competency perspective of leadership has been rewritten to incorporate new information about personality, self-concept, practical intelligence, and other specific competencies. The topic of implicit leadership has also been revised to incorporate the distinction between leadership prototypes and the romance of leadership. The topic of shared leadership has been expanded and the concept of open leadership and leadership in the context of global meltdown has been introduced.

Chapter 13: Organizational Structure. This edition describes the globally integrated enterprise in the section on forms of departmentalization. The liability of newness is now discussed in the section on organic structures. The chapter also revises writing on span of control and tall/flat structures and introduces concurrent engineering practices in the context of informal coordinating mechanisms. The (dis)advantages of tall versus flat structures also receive a more precise discussion.

Chapter 14: Organizational Culture. This edition more specifically (than in past editions) critiques the “integration” perspective of organizational culture by referring to the alternative differentiation and fragmentation views of this topic. It discusses the Indian Cultural Perspective in terms of Indian cultural traditions, composite Indian mindset and Situational Behavior of Indians. It also describes attraction-selection-attrition theory as well as the Organizational Culture Profile model.

xvi Preface The sections on organizational culture and performance as well as the section on changing/ strengthening organizational culture have been substantially rewritten with added inputs on aligning artifacts and attracting, selecting and socializing with employees. Addition of socialization as a learning and adjustment process under Organization Socialization strengthens the concept while the concept of culture in MNCs entering India and vice-versa as well as importance of cultural skills have also been discussed.

Chapter 15: Organizational Change. In this edition, the topic of resistance to change is further updated regarding the three functions of resistance. We added a new section on large-group interventions as a distinct fourth approach to organizational change. The topics of urgency for change and future search conferences also received minor updates. A new approach to organizational change has been added in the form of large-group intervention.