eBook Organisational Behaviour Engaging People and Organisations 2e By Ricky W. Griffin, Jean M. Phillips, Stanley M. Gully, Andrew Cre
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Get Complete eBook Download By email at student.support@hotmail.com organisational behaviour ENGAGING PEOPLE AND ORGANISATIONS 2E RICKY W. GRIFFIN JEAN M. PHILLIPS STANLEY M. GULLY ANDREW CREED LYNN GRIBBLE MOIRA WATSON Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 Get Complete eBook Download By email at student.support@hotmail.com organisational behaviour ENGAGING PEOPLE AND ORGANISATIONS 2E RICKY W. GRIFFIN JEAN M. PHILLIPS STANLEY M. GULLY ANDREW CREED LYNN GRIBBLE MOIRA WATSON Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 1 10/08/23 11:52 AM Get Complete eBook Download By email at student.support@hotmail.com Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 2 10/08/23 11:52 AM Get Complete eBook Download By email at student.support@hotmail.com organisational behaviour ENGAGING PEOPLE AND ORGANISATIONS 2E RICKY W. GRIFFIN JEAN M. PHILLIPS STANLEY M. GULLY ANDREW CREED LYNN GRIBBLE MOIRA WATSON Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 3 10/08/23 11:52 AM Get Complete eBook Download By email at student.support@hotmail.com Organisational Behaviour: Engaging People and Organisations © 2024 Cengage Learning Australia Pty Limited 2nd Edition WCN: 02-300 Ricky W. Griffin Jean M. Phillips Stanley M. Gully Andrew Creed Lynn Gribble Moira Watson Copyright Notice This Work is copyright. No part of this Work may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without prior written permission of the Publisher. Except as permitted under the Copyright Act 1968, for example any fair dealing for the purposes of private study, research, criticism or review, subject to certain limitations. 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This second edition published in 2024 Part opener credit: stock.adobe.com/freshidea; Chapter opener credit: Unsplash/Annie Spratt For permission to use material from this text or product, please email aust.permissions@cengage.com National Library of Australia Cataloguing-in-Publication Data ISBN: 9780170465427 A catalogue record for this book is available from the National Library of Australia. Cengage Learning Australia Level 5, 80 Dorcas Street Southbank VIC 3006 Australia For learning solutions, visit cengage.com.au Printed in Malaysia by Papercraft. 1 2 3 4 5 6 7 27 26 25 24 23 Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 4 10/08/23 11:52 AM Get Complete eBook Download By email at student.support@hotmail.com v BRIEF CONTENTS 1 PART 1: INTRODUCTION TO ORGANISATIONAL BEHAVIOUR 2 Chapter 1: An overview of organisational behaviour 4 Chapter 2: The changing environment of organisations 42 PART 2: INDIVIDUAL BEHAVIOURS AND PROCESSES IN ORGANISATIONS 78 Chapter 3: Individual characteristics 80 Chapter 4: Perceptions and reactions 106 Chapter 5: Motivating behaviour 145 3 PART 3: SOCIAL AND GROUP PROCESSES IN ORGANISATIONS 198 Chapter 6: Groups and teams 200 Chapter 7: Decision making and problem solving 239 Chapter 8: Communication 276 Chapter 9: Conflict and negotiation 309 PART 4: LEADERSHIP AND INFLUENCE PROCESSES IN ORGANISATIONS 338 Chapter 10: Traditional and contemporary leadership approaches 340 Chapter 11: Power, influence and politics 379 5 2 4 PART 5: ORGANISATIONAL PROCESSES AND CHARACTERISTICS 410 Chapter 12: Organisational structure and design 412 Chapter 13: Organisational culture 438 Chapter 14: Organisation change and change management 463 Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 5 12/08/23 6:57 PM Get Complete eBook Download By email at student.support@hotmail.com vi CONTENTS GUIDE TO THE TEXT GUIDE TO THE ONLINE RESOURCES PREFACE ABOUT THE AUTHORS ACKNOWLEDGEMENTS PART 1 INTRODUCTION TO ORGANISATIONAL BEHAVIOUR CHAPTER 1 AN OVERVIEW OF ORGANISATIONAL BEHAVIOUR 1 1.1 1.2 1.3 1.4 1.5 xii xvi xviii xx xxiii What is organisational behaviour? The meaning of organisational behaviour How organisational behaviour impacts personal success How organisational behaviour impacts organisational success The managerial context of organisational behaviour Basic management functions and organisational behaviour Critical management skills and organisational behaviour Organisational behaviour and human resource management The strategic context of organisational behaviour Sources of competitive advantage Types of business strategies Connecting business strategy to organisational behaviour Contextual perspectives on organisational behaviour Where does organisational behaviour come from? Organisations as open systems Situational perspectives on organisational behaviour Interactionism: people and situations Managing for effectiveness Enhancing individual and team performance behaviours 4 6 6 8 11 13 14 1.6 28 Summarising the framework of the book 34 CHAPTER 2 THE CHANGING ENVIRONMENT OF ORGANISATIONS 42 2.1 Diversity and barriers to inclusion Trends in diversity Generational differences Diversity issues for managers 45 46 47 49 2.2 Globalisation and business Trends in globalisation Cultural competence Cross-cultural differences and similarities Global perspective 52 52 54 55 58 2.3 Technology and business Manufacturing and service technologies Technology and competition Information technology 58 58 61 61 2.4 Ethics and corporate governance Framing ethical issues Ethical issues in corporate governance Ethical issues and information technology Social responsibility 62 63 64 65 66 18 18 19 27 28 29 29 30 31 29 36 17 24 24 26 Enhancing employee commitment and engagement Promoting organisational citizenship behaviours Minimising dysfunctional behaviours Driving strategic execution How do we know what we know? STUDY TOOLS 16 23 2 28 Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 6 10/08/23 11:52 AM Get Complete eBook Download By email at student.support@hotmail.com 2.5 New employment relationships The management of knowledge workers Outsourcing and offshoring PART 2 vii Temporary and casual workers The changing nature of psychological contracts 69 69 STUDY TOOLS INDIVIDUAL BEHAVIOURS AND PROCESSES IN ORGANISATIONS CHAPTER 3 INDIVIDUAL CHARACTERISTICS 2 67 67 68 CONTENTS 80 CHAPTER 4 PERCEPTIONS AND REACTIONS 72 78 106 4.1 86 86 88 Attitudes in organisations How attitudes are formed Cognitive dissonance Attitude change Key work-related attitudes 108 108 109 110 111 4.2 Other important personality traits Locus of control Self-efficacy Self-esteem Authoritarianism Machiavellianism Tolerance for risk and ambiguity Type A and B traits Role of the situation 89 89 90 90 90 91 92 92 93 Values and emotions in organisations Types of values Conflicts among values Values differ around the world The role of emotions in behaviour Affect and mood 113 114 114 115 115 117 4.3 Perception in organisations Basic perceptual processes Errors in perception Perception and attribution Perception and fairness, justice and trust 119 119 120 123 125 3.4 Intelligence General mental ability Multiple intelligences Emotional intelligence 94 95 96 97 4.4 3.5 Learning styles Sensory modalities Learning style inventory 98 98 98 Stress in organisations The nature of stress Common causes of stress Consequences of stress Managing and controlling stress Work–life balance 127 128 129 132 134 137 3.1 People in organisations Individual differences The concept of fit A realistic view of the job and organisation 82 82 82 85 3.2 Personality and individual behaviour The ‘Big Five’ framework The Myers-Briggs framework 33 STUDY TOOLS STUDY TOOLS 138 100 Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 7 10/08/23 11:52 AM viii CONTENTS Get Complete eBook Download By email at student.support@hotmail.com CHAPTER 5 MOTIVATING BEHAVIOUR 5.1 5.2 5.3 5.4 The nature of motivation The importance of motivation The motivational framework Early perspectives on motivation Individual differences and motivation 147 147 147 149 150 Need-based perspectives on motivation The hierarchy of needs The ERG theory The two-factor theory The acquired needs framework 151 152 154 155 157 Process-based perspectives on motivation The equity theory of motivation The expectancy theory of motivation 161 161 164 Learning-based perspectives on motivation How learning occurs 168 168 PART 3 3 6.2 6.3 6.4 169 170 171 5.5 The complexities of maintaining motivation 174 5.6 Job design in organisations Job specialisation Basic alternatives to job specialisation The job characteristics theory 176 176 177 179 5.7 Employee participation and involvement Areas of employee participation Approaches to participation and empowerment Flexible work arrangements Alternative workplaces 181 182 182 183 185 Goal setting and motivation Goal-setting theory Broader perspectives on goal setting Goal-setting challenges 186 187 188 189 5.8 STUDY TOOLS SOCIAL AND GROUP PROCESSES IN ORGANISATIONS CHAPTER 6 GROUPS AND TEAMS 6.1 Reinforcement theory and learning Social learning Behaviour modification 145 6.5 200 Types of groups and teams Types of workgroups Types of teams Informal groups 202 202 204 207 Group performance factors Group composition Group size Group norms Group cohesiveness Informal leadership 208 209 209 210 212 214 Creating new groups and teams Stages of group and team development Understanding team performance factors The implementation process 215 215 217 219 Managing teams Leader behaviours Understanding benefits and costs of teams 222 223 223 Teaming An alternative view of teams Promoting effective performance Teamwork competencies 191 198 226 227 228 230 STUDY TOOLS 231 CHAPTER 7 DECISION MAKING AND PROBLEM SOLVING 239 7.1 The nature of decision making Types of decisions Decision-making conditions 241 241 245 7.2 The rational approach to decision making Steps in rational decision making Evidence-based decision making 247 247 250 7.3 The behavioural approach to decision making The administrative model Other behavioural forces in decision making An integrated approach to decision making 252 253 253 256 Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 8 10/08/23 11:52 AM Get Complete eBook Download By email at student.support@hotmail.com 7.4 Group decision making in organisations Group polarisation Groupthink Participation Group problem solving 258 258 258 261 263 7.5 Creativity, problem solving and decision making The creative individual The creative process Enhancing creativity in organisations 265 266 267 268 STUDY TOOLS 269 CHAPTER 8 COMMUNICATION 276 8.1 8.2 8.3 The communication process Non-verbal communication One-way and two-way communication Task interdependence Barriers to effective communication 278 280 281 281 282 Communication skills Listening skills Writing skills Presentation skills Meeting skills 287 287 289 291 291 Communication media The internet Collaboration software Intranets and cloud servers Oral communication Media richness 292 292 293 294 296 297 PART 4 Organisational communication Downward communication Upward communication Horizontal communication Diagonal communication Formal and informal communication Social networking 303 CHAPTER 9 CONFLICT AND NEGOTIATION 309 9.1 The nature of conflict Common causes of conflict Conflict escalation Role of emotion in conflict 311 311 316 319 9.2 Interpersonal conflict management strategies Collaborating Compromising Competing Accommodating Avoiding 320 320 320 321 321 321 9.3 The conflict process Conflict management skills Creating constructive conflict 322 324 324 9.4 The negotiation process Negotiating skills Cultural issues in negotiations Alternative dispute resolution 326 326 328 329 STUDY TOOLS The nature of leadership The meaning of leadership Leadership versus management 342 342 342 10.3 The emergence of situational leadership models The LPC theory of leadership Task versus relationship motivation Situational favourableness The path-goal theory of leadership 10.2 Early approaches to leadership Trait approaches to leadership Behavioural approaches to leadership 345 345 346 10.4 Vroom’s decision tree approach to leadership Basic premises Evaluation and implications 10.1 340 298 298 300 300 301 301 302 STUDY TOOLS LEADERSHIP AND INFLUENCE PROCESSES IN ORGANISATIONS CHAPTER 10 TRADITIONAL AND CONTEMPORARY LEADERSHIP APPROACHES 4 8.4 ix CONTENTS 332 338 349 350 350 352 354 356 356 359 Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 9 12/08/23 6:57 PM x CONTENTS Get Complete eBook Download By email at student.support@hotmail.com 10.5 Contemporary situational theories The leader-member exchange model The Hersey and Blanchard model Refinements and revisions of other theories 359 359 360 360 10.6 Leadership through the eyes of followers Transformational leadership Charismatic leadership Attribution and leadership 361 362 362 365 10.7 Alternatives to leadership Leadership substitutes Leadership neutralisers 366 366 367 10.8 The changing nature of leadership Leaders as coaches Gender and leadership International leadership and Project GLOBE 367 368 368 10.9 Emerging issues in leadership Strategic leadership Ethical leadership Virtual leadership 370 370 370 371 STUDY TOOLS 373 PART 5 381 382 384 11.2 Obtaining and using power Acquiring and using power Empowerment How departments obtain power 386 386 388 389 11.3 Influence in organisations Influence tactics Role of national culture in influence effectiveness Persuasion skills Upward influence 389 390 11.4 Organisational politics Causes of political behaviour Managing organisational politics 395 398 399 11.5 Impression management 400 STUDY TOOLS 402 ORGANISATIONAL PROCESSES AND CHARACTERISTICS 410 5 369 11.1 379 Types of power in organisations Position power Personal power CHAPTER 12 ORGANISATIONAL STRUCTURE AND DESIGN 414 416 420 12.2 Determinants of organisational structure Business strategy External environment Organisational talent Organisational size Behavioural expectations Production technology Organisational change 422 423 423 423 424 424 424 425 12.3 Types of organisational structures Functional structure Divisional structure Matrix structure 425 426 426 427 391 392 393 Team-based and lattice structures Network organisation 429 429 12.4 Contemporary issues in organisational structure Virtual organisations Integrating employees Communities of practice Effects of restructuring on performance 430 430 431 431 432 STUDY TOOLS 433 CHAPTER 13 ORGANISATIONAL CULTURE 438 412 Organisational structure Characteristics of organisational structure Mechanistic and organic structures 12.1 CHAPTER 11 POWER, INFLUENCE AND POLITICS 13.1 The meaning and determinants of organisational culture Does culture matter? How leaders create and maintain culture 440 442 444 Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 10 10/08/23 11:52 AM Get Complete eBook Download By email at student.support@hotmail.com 13.2 Cultures of conflict and cultures of inclusion Cultures of conflict Cultures of inclusion 446 446 448 13.3 Effects of technology and innovation on culture 449 Using intranets, social media and the cloud to build and maintain culture 449 450 Building and maintaining culture in the cloud 451 Innovation and culture 13.4 Managing organisation culture Utilising the existing culture Teaching the organisation culture: socialisation Changing the organisation culture 453 453 454 455 STUDY TOOLS 457 CHAPTER 14 ORGANISATION CHANGE AND CHANGE MANAGEMENT 463 14.1 Forces for change People Technology Competition Climate change 14.2 Processes for planned organisation change Lewin’s process model The continuous change process model 465 465 467 468 468 xi CONTENTS 14.3 Organisation development Organisation development defined System-wide organisation development Task and technological change Group and individual change 474 474 475 477 479 14.4 Resistance to change Organisational sources of resistance Individual sources of resistance 482 484 485 14.5 Managing successful organisation change and development Consider global issues Take a holistic view Start small Secure top management support Encourage participation Foster open communication Reward contributors 486 487 487 487 488 488 488 488 14.6 Organisational learning 489 STUDY TOOLS 490 GLOSSARY COMPANY INDEX SUBJECT INDEX 495 505 471 471 472 507 Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 11 10/08/23 11:52 AM xii Get Complete eBook Download By email at student.support@hotmail.com Guide to the text As you read this text you will find a number of features in every chapter to enhance your study of organisational behaviour and help you understand how the theory is applied in the real world. PART-OPENING FEATURES Understand how key concepts are connected across all chapters in the part with the part framework diagram. Part openers introduce each of the chapters within the part and give an overview of how the chapters in the text relate to each other. 198 199 PART 3 SOCIAL AND GROUP PROCESSES IN ORGANISATIONS Why do groups and teams do what they do? • Individual characteristics • Individual values, perceptions and reactions • Motivating behaviour • Motivating behaviour with work and rewards • Groups and teams • Decision making and problem solving • Communication • Conflict and negotiation Why does leadership matter? What makes managers and organisations effective? • Enhancing performance behaviours • Enhancing commitment and engagement • Promoting citizenship behaviours • Minimising dysfunctional behaviours • Traditional leadership approaches • Modern leadership approaches • Power, influence and politics Groups and teams Chapter 7 Decision making and problem solving Chapter 8 Communication Chapter 9 Conflict and negotiation As you will recall from Chapter 1, managers work to make their organisations effective by enhancing performance behaviours, enhancing commitment and engagement, promoting citizenship behaviours, and minimising dysfunctional behaviours by their employees. Chapter 2 identified several environmental factors that must be considered. In Part 2 we asked the question ‘Why do individuals do what they do?’, and addressed this question by discussing individual characteristics, values, perceptions and reactions, employee motivation concepts and theories, and how work and rewards can be used to enhance motivation. In Part 3 we ask a different question: ‘Why do groups and teams do what they do?’ As was the case with individuals, we need to look at a number of different perspectives to better understand group and team behaviours and their role in promoting organisational effectiveness. We start in Chapter 6 by discussing groups and teams as essential parts of organisations and therefore as major determinants of the success of any organisation. We then describe decision making and problem solving in Chapter 7. Although decision making may also be an individual activity, it often takes place in a group or team context and usually affects others. Communication is covered in Chapter 8. Finally, Chapter 9 addresses another important set of factors related to groups and teams: conflict and negotiation. At the conclusion of Part 3 you should have a clearer understanding of why groups and teams do what they do. How does the environment matter? Why do individuals do what they do? Chapter 6 How do organisational characteristics influence effectiveness? • Organisation structure and design • Organisation culture • Change management How does the environment matter? 4 CHAPTER-OPENING FEATURES BK-CLA-GRIFFIN_2E-230108-Chp06.indd 198 CHAPTER 08/07/23 6:41 PM 1 BK-CLA-GRIFFIN_2E-230108-Chp06.indd 199 Learning outcomes After studying this chapter, you should be able to: LO 1.1 08/07/23 6:41 PM describe how organisational behaviour impacts both personal and organisational success explain the basic management functions and essential skills Enhanced chapter introductions outline the different lenses of organisational behaviour explored in the that comprise the management process in the context of organisational behaviour AN OVERVIEW OF chapter and connect to the ‘Guide your learning’ questions that underpin the chapter. LO 1.2 Identify the key concepts that the chapter will cover with the Learning outcomes at the start of each chapter. ORGANISATIONAL LO 1.3 describe the strategic context of organisational behaviour and discuss the relationships between strategy and organisational behaviour Challenge about the topics BEHAVIOURyour initial assumptions describe contextual perspectives on organisational behaviour ahead with the Guide Your Learning questions describe the role of organisational behaviour in managing for effectiveness and discuss the role of research in organisational behaviour relating to the learning outcomes. LO 1.4 LO 1.5 LO 1.6 4 summarise the framework around which this book is organised. Guide your learning CHAPTER 1 AN OVERVIEW OF ORGANISATIONAL BEHAVIOUR Learning outcomes 1 What is an organisation and why should we care about its behaviour? (LO1) After studying this chapter, you should be able to: 2 What makes a manager good and does it matter whether they are nice people? (LO2) 3 Does understanding organisational behaviour simply mean being able to manipulate people to do jobs they don’t want to do? (LO3) 4 Are workers cogs in a machine or something else? (LO4) 5 Is it more important for an organisation to be effective than efficient? (LO5) 6 If managing people is like herding cats, is the study of organisational behaviour unable to have a coherent structure? (LO6) LO 1.1 describe how organisational behaviour impacts both personal and organisational success LO 1.2 explain the basic management functions and essential skills that comprise the management process in the context of organisational behaviour LO 1.3 describe the strategic context of organisational behaviour and discuss the relationships between strategy and organisational behaviour LO 1.4 describe contextual perspectives on organisational behaviour LO 1.5 describe the role of organisational behaviour in managing for effectiveness and discuss the role of research in organisational behaviour LO 1.6 summarise the framework around which this book is organised. Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 Guide your learning BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 12 1 What is an organisation and why should we care about its behaviour? (LO1) 2 What makes a manager good and does it matter whether they are nice people? (LO2) 3 Does understanding organisational behaviour simply mean being able to manipulate people to do jobs they don’t want to do? (LO3) BK-CLA-GRIFFIN_2E-230108-Chp01.indd 4 08/07/23 1:23 PM 10/08/23 11:53 AM 402 PART 4: LEADERSHIP AND INFLUENCE PROCESSES IN ORGANISATIONS STUDY TOOLS Get Complete eBook Download By email at student.support@hotmail.comGUIDE TO THE TEXT SUMMARY 11.1 We commenced by identifying and describing different kinds of power, such as position power (legitimate, reward and coercive powers), which is derived from the position one holds in an organisation, and personal power (expert, informational, referent, persuasive and cultural power), which comes from the unique characteristics of individuals regardless of their position in the organisation. 11.2 The chapter then discussed how individuals and groups obtain and use power, where we saw that when used properly, power, influence and politics are essential tools for managerial success. However, when used improperly, power, influence and politics can undermine trust, result in unethical behaviour and create a toxic organisation. Understanding these tools and how to use them effectively will help you to be a more successful manager. 11.3 There are many influence tactics such as liking, reciprocity and scarcity that can be used and while these can all be effective, authority or rational persuasion only work in conjunction with other FEATURES WITHIN CHAPTERS Gain an insight into organisational behaviour issues faced by local and international organisations through the OB in the Real Word box at the start of each chapter. 380 At the end of the chapter, revisit this in the Response to OB in the Real World and apply your understanding of key chapter concepts. PART 4: LEADERSHIP AND INFLUENCE PROCESSES IN ORGANISATIONS OB in the Real World xiii power and influence tactics. The six primary upward influence tactics are ingratiation, exchange, rationality, assertiveness, coalition formation and upward appeals. Rational persuasion, inspirational appeals and consultation are the most effective influence tactics, and pressure is the least effective. 11.4 Some of the factors that influence political behaviour in organisations include levels of uncertainty, scarcity of valued resources and organisational policies. Being able to recognise these and where appropriate utilise them will help you better manage power and politics at work. 11.5 Impression management involves the communication of a desired image or attitude to influence the image others form of us. Being perceived positively by others is related to greater power and influence and it may also help employees succeed in political environments. Impressions count, particularly early ones, and you can link this to our discussion of perceptual filters in earlier chapters. Influencing acceptance of mental health issues at work Influencing acceptance of mental health issues at work it is not Mitch’s story alone. Mitch has provided a safe organisations. Its website simply states: ‘Heart on My Sleeve is a global social movement & services provider empowering people to share stories of struggle and resilience, so that we all feel understood. We inspire The Black Dog Institute cites that one in five people will this chapter, but he did quite naturally do them. people & organisations to take help seeking action by humanising our personal yet universal journeys with mental health’.1 After what could be seen as a high-powered start to life, Mitch appeared to have it all, studying at a prestigious university, gaining an internship at Microsoft and driving a sports car; but inside Mitch was struggling. He had life. Response to OB in the Real World Heart On My Sleeve started with a simple act when founder Mitch Wallis drew a heart on his forearm, and this act turned into a social movement that today is embracing mental health issues at some of Australia’s largest suffer a mental health episode at some stage in their that Mitch did not set out to follow all the strategies in It all started with a person, just like you and me (or What made Mitch a force of influence was his who we’d like to be) and the brave and vulnerable ability to share a story that resonated with people.122 sharing of a story with a picture that grew into a He is likeable, down to earth, real and raw, and people global movement. Today, hundreds are now telling connect with that. His simple actions feel possible: take their story, not sitting alone but being part of a global the pledge to speak if you are not okay, then look for ways movement that opened a door to understanding and to find help, professionally, at work and with friends. But discussing mental health at work. 121 struggled throughout his life with anxiety, but showing his vulnerability took courage. With his anxiety spiralling out of control, he decided things had to change. He decided this would come through the power of sharing space for others to tell their stories too. It is easy to see stories, which has been applied in ancient and Indigenous cultures around the world for millennia as a means of addressing stress and crisis.2 Today, Heart on My Sleeve is working with organisations including American Express, Google, Spotify, Dropbox, Woolworths, Salesforce, Suncorp and more to make it safe for people to share their daily struggles and take a positive view towards mental health. Heart on My Sleeve has become a leader with a global voice for mental health. Organically, it has evolved into an organisation that supports, educates, trains and accredits. It is about real conversations that provide peer support. It is truly unique, because it looks at the problem, and the problem of mental health continues to rise. According to Mitch, 70 per cent of people stay silent on their mental health issues, so Mitch decided to move from talk to action, as one of the problems identified is feeling alone. The movement is away from awareness to behaviour change, not telling but showing it’s okay to talk about mental health. He is inspiring people to be proactive beyond waiting to be asked to take ownership and inviting people into the relationship to help. This creates bonds involving the heart of the problem, the space in between selfhelp and professional help. Through the guiding values of authenticity, safety and impact, Mitch has nearly singlehandedly Heart on My Sleeve founder Mitch Wallis has power and influence, not by position but through his message of reaching influenced social change and he is seeking Engage and apply your understanding of key chapter concepts to real examples in OB in Practice. out to others. Source: Newspix/Troy Snook Photography Engage actively and personally with real-world organisational behaviour tips and techniques in the OB Skills boxes. BK-CLA-GRIFFIN_2E-230108-Chp11.indd 402 10/07/23 10:35 AM to do more by doubling the self-help seeking rate to 60 per cent over five years. Question This is a story of influence and connection, one where the power of social media was harnessed for good. But Mitch did not set out to lead a movement, he just sought to create meaningful connection, and that led to a movement that empowered and influenced change. How did Mitch earn this power, create influence and manage his image to make a difference? BK-CLA-GRIFFIN_2E-230108-Chp11.indd 380 Explore the real-world ethical issues faced by managers in the Ethical Dilemma boxes. 10/07/23 10:35 AM Understand varying perspectives of organisational behaviour theories and issues with the Critical Perspective boxes. Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 13 10/08/23 11:53 AM 316 xiv PART 3: SOCIAL AND GROUP PROCESSES IN ORGANISATIONS GUIDE TO THE TEXTGet Complete eBook Download By email at student.support@hotmail.com protests. At the time of these protests, then Australian Prime Minister Scott Morrison and others claimed that these protesters denied the ‘liberties of Australians’ and should instead obey the law,36 and then New Zealand Prime Minister Jacinda Arden considered the group’s behaviour as ‘illegal’.37 Some commentators considered the group to be no more than an angry mob that was actually harming positive movement on climate change.38 The difference between value sets causes conflict. Poor communication FEATURES WITHIN CHAPTERS Analyse your own management style and strengths with the Self-Assessment boxes. information conflict Conflict that occurs when people lack necessary information, are misinformed, interpret information differently or disagree about which information is relevant Uncertainty is one of the primary drivers of conflict. Poor communication increases uncertainty, and can thus increase the potential for conflict. Information conflict occurs when people lack important information, are misinformed, interpret information differently or disagree about which information is relevant. If a manager tells only some subordinates (but not others) about strategy changes or upcoming scheduling changes, this increases the opportunity for conflict between the employees who have this important information and those who lack the information. Because email restricts the richness of communication and increases the chances of misunderstanding, conflicts are more likely to escalate when people communicate via email compared to face-to-face or over the telephone.39 Important key terms are marked in bold in the text and definedTaskininterdependence the margin when they are used for the first time. A full list of key terms is also available in the glossary, which can be found at the back of the book. Task interdependence occurs in situations where individuals or units rely on others to jointly complete tasks, and there is a need to actively cooperate by sharing information or resources to achieve the required performance standards. Where this interdependency exists, the potential for conflict increases. Imagine you are working in an advertising agency and you are tasked with creating advertising for a new product. To achieve this goal, you depend on the creative team to design the words and layout, the photographer to create the visuals, the media buyer to purchase the advertising space and so on. You cannot complete your goal without others jointly completing their tasks. Organisational structure structural conflict Conflict resulting from structural or process features of the organisation Structural conflict is the result of structural or process features of the organisation. Structural conflict can be horizontal or vertical. Horizontal conflict occurs between groups at the same organisational level, such as between frontline and middle-level employees or between departments such as production and marketing. A classic example is the marketing–production conflict between marketing’s long-term view of sales and production’s short-term goal of cost efficiency. Because the realities of employees in each department are aligned with their identification with these dimensions, conflict is a reasonable response to ‘those people in that other department’.40 Vertical conflict occurs across different hierarchical levels in the organisation, including conflicts over wage issues or control. Union–management relationships are a classic example of vertical conflict. Because structural conflict is due to organisational design, adjusting the design often reduces or eliminates the structural conflict. Matching a department’s structural design with its needs, given its environment, improves its effectiveness. Structural interventions should focus on creating a moderate amount of constructive task conflict and minimal relationship conflict by addressing the sources of these conflicts for that particular unit. Conflict escalation As noted already, negative conflict has a tendency to escalate. Conflict escalation happens when one party involved in a conflict (an individual, a small group, a department or an entire organisation) first uses an aggressive tactic or begins using more aggressive tactics than the other party.41 When constructive approaches to conflict resolution are unsuccessful and break down, the conflict escalates. The further END-OF-CHAPTER FEATURES BK-CLA-GRIFFIN_2E-230108-Chp09.indd 316 At the end of each chapter you will find several tools to help you to review, practise and extend your knowledge of the key learning outcomes. CHAPTER 5: MOTIVATING BEHAVIOUR 10/07/23 10:27 AM 191 STUDY TOOLS SUMMARY Review your understanding of the chapter learning outcomes with the chapter summary. effort will lead to performance. Performance-to-outcome 5.1 This chapter has covered a variety of theories that can instrumentality is the belief that performance will be used by managers to motivate employee performance. lead to certain outcomes. Valence is the desirability Understanding why and how a motivational perspective to the individual of the various possible outcomes of works helps managers better match motivational performance. The Porter-Lawler version of expectancy techniques with motivation opportunities and enhances theory provides useful insights into the relationship the likelihood of success. Motivation is the set of between satisfaction and performance. This model forces that cause people to behave as they do. Over suggests that performance may lead to a variety of the chapter, we have explored the nature of motivation intrinsic and extrinsic rewards. When perceived as and the history of theories from Maslow and Herzberg. equitable, these rewards lead to satisfaction. According to Abraham Maslow, human needs are arranged in a hierarchy of importance, from physiological 5.4 Learning-based theories consider how learning plays to security to belongingness to esteem to, finally, a role in employee motivation. Various kinds of self-actualisation. The ERG theory is a refinement of reinforcement provided according to different schedules Maslow’s original hierarchy that includes a frustrationcan increase or decrease motivated behaviour. People regression component. In Herzberg’s two-factor theory, are affected by social learning processes. Organisational satisfaction and dissatisfaction are seen as two distinct behaviour modification is a strategy for using learning dimensions instead of being at opposite ends of the and reinforcement principles to enhance employee same dimension. Motivation factors are presumed to motivation and performance. This strategy relies heavily CHAPTERof 4: PERCEPTIONS AND REACTIONS affect satisfaction and hygiene factors are presumed on the effective measurement performance and the to affect dissatisfaction. Herzberg’s theory is well provision of rewards to employees after they perform at known among managers but has several deficiencies. a high level. Other important acquired needs include the needs for more than 5.5 The complexities of motivation may include Response Commitment to sustainability is more than green washing achievement, affiliation and power. Motivation theories cognition. A growing body of evidence to suggests that OB in the canJurkovich, be separated processDirector or content Steve the into Managing andtheories. Chief and gender ticks ensuring feels they belong. traits sucheveryone as grit should be at least considered, as this Real World Executive Officerperspectives of Kiwibank, recognises diversity Te Kahukura Kāpuia The Multicoloured Collective: Needs-based consider that motivation starts 5.2 considers both passion and perseverance in pursuing a andwith differences in passion. This is why employees can ‘This is a symbol of who we are. This is a place where a need. People search for ways to satisfy their needs goal. Managers110seek to enhance employee performance focus cultural competence and/or sustainability we all is Kiwibank.’ andonthen behave accordingly. Their behaviourasresults in belong. This by capitalising on the potential for motivated behaviour a way of engaging with their B Corp plans. rewards or punishment. To varying degrees, an outcome to improve performance. Methods often used to translate They are proud to ensure a ‘living wage’ to every may satisfy the original need. motivation into performance involve work design, employee, contractor and supplier. They hold rainbow participation and empowerment, alternative work 5.3 Process-based theories include the equity theory of arrangements, performance management, goal setting motivation focusing on people wanting to be treated and rewards. fairly. It hypothesises that people compare their own input-to-outcome ratio in the organisation with the ratio 5.6 The essence of work design is how organisations define of a comparison-other. If they feel their treatment has and structure jobs. Historically, there was a general trend c. Both of these 1. been Whatinequitable, term refersthey to feeling obliged to stay with an take steps to reduce the inequity. towards increasingly specialised jobs, but more recently, organisation for moralaor somewhat ethical reasons? Expectancy theory, more complicated d. the Neither as natureofofthese work has evolved, there has been a move model, follows from the assumption that people are a. Continuance commitment early alternatives 4. away Whatfrom termextreme refers specialisation. to how peopleTwo explain the causes motivated to commitment work towards a goal if they want it and to were as jobother rotation and job enlargement. of specialisation their own as well people’s behaviours and b. Affective think that they have a reasonable chance of achieving Job enrichment approaches stimulated considerable achievements? c. Legal commitment it. Effort-to-performance expectancy is the belief that interest in job design. The job characteristics theory a. Attribution d. Normative commitment b. Sensation 2. What term refers to a heightened emotional and 139 REVISION QUESTIONS Test your knowledge of key chapter concepts and consolidate your learning with multiple-choice revision questions. intellectual connection that an employee has for his/her job, organisation, manager or co-workers that, in turn, influences him/her to apply additional discretionary effort to his/her BK-CLA-GRIFFIN_2E-230108-Chp05.indd 191 work? a. Community engagement c. Both of these b. 3. d. b. When being happy pulls us towards spending quality time with our family, but personal ambition pulls us towards working longer hours and pursuing promotions 6. Empowerment Projection In the study of stress, what does GAS stand for? a. General adaptation syndrome c. General anxiety sensation d. Neither of these When we have a disagreement with our co-workers that prevents productivity d. b. Employee engagement When does intrapersonal value conflict occur? a. c. 5. 10/07/23 7:55 PM General anti-stress support Nothing – the acronym has lost its meaning over time Which of the following refers to a positive type of stress? a. Task demands c. Distress b. d. GAS Eustress CASE STUDY The stolen billions: wage theft in Australia With more and more workers participating in the gig economy and many individuals employed as casuals or under temporary contracts rather than as full-time employees, it is becoming more difficult to engage with employees. An engaged employee is more likely to demonstrate high levels of commitment and loyalty to their employer. They also exhibit other organisational citizenship behaviours (OCB) including organisational trust, job satisfaction and altruism towards other employees, and are less likely to engage in counterproductive work behaviours. However, while casual, contracted and gig Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp04.indd 139 BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 14 08/07/23 1:26 PM 10/08/23 11:53 AM CHAPTER 5: MOTIVATING BEHAVIOUR 193 Get Complete eBook Download By email at student.support@hotmail.comGUIDE TO THE TEXT 3. Herzberg’s dual-structure theory suggests that the feelings of satisfaction and dissatisfaction that workers experience are derived from the same set of factors. a. 4. END-OF-CHAPTER FEATURES b. 5. True a. Defining what can be improved c. Identifying existing behavioural consequences b. False A key component of equity theory is that employees compare their own input/output ratios with the input/ output ratios of other employees. What is the term for this phenomenon? ___________________ is the first step in the organisational behaviour modification process. d. Tracking the occurrence of the target behaviour a. Social contrast In the early stages of the learning process, fixed-ratio reinforcement is particularly effective for promoting desirable behaviours. c. Interpersonal contrast b. b. d. 6. Social comparison a. Social loafing xv Identifying the behaviours that you wish to change True False CASE STUDY It’s not the people who are the problem Analyse in-depth case studies that present organisational behaviour issues in context, encouraging you to integrate and apply chapter concepts through a set of mainstream and critical questions. 194 You have recently commenced as a manager in the finance team at ATELCO, an internet provider. The team largely consists of long-term employees with the average tenure of five years. Most of the team are well experienced, having worked in finance for between 10 and 20 years. Most are diploma or degree qualified. Your director has mentioned a number of things about this team that you are aware of. All employees are paid at or above market rate. They appear to be hardworking and respected members of the organisation. Generally, work attendance is good with few sick days taken. All of the team are receiving discounted internet provision. Upon starting in this team, you noticed they were largely ‘daredevils’ taking quite exotic holidays and participating in high-risk activities such as skydiving, bungee jumping and the like. They seem to take these annually, utilising their annual bonus as a means for going travelling. In looking at their roles you have noticed the work is generally mundane and every task has been broken into smaller parts. Each team member is considered a specialist in their area and when people take leave, temporary staff need to be brought in, as no one shares this expertise. You have noticed also they have very little contact with other parts of the organisation and currently sit in a ‘glass office’ situated in the middle of the building. The rest of the office is open plan, but due to confidentiality they must have a locked office, although within the glassed section they sit open plan. They have to leave the glass office to access the kitchen and bathroom facilities. PART 2: INDIVIDUAL BEHAVIOURS AND PROCESSES IN ORGANISATIONS A quick conversation with Jane, who has been there 10 years, has revealed they are all ‘happy enough’ but you ‘feel’ this might be inaccurate. You notice Bob rarely joins the conversation and Haley makes snide comments about how hard she is working while others are ‘off enjoying their holidays’, but everyone seems ‘in’ on this joke. Alvin starts early and finishes late most days. He often comes in on the weekends as well. It’s coming into the busy period and the team may have to work longer hours to reach the outputs required. Having studied motivation, you are keen to use your knowledge to see how it applies to this team. Questions Mainstream 1. 2. How can the various motivation theories inform what is occurring at this workplace? What does equity theory tell us about the behaviour of Alvin and Haley? What else might underpin their behaviours? Critical 1. 2. If everyone is performing and nothing is wrong, perhaps this team should be left as it is. In this case, what problems might arise? Why should the daredevil activities be of any concern? Perhaps they are just an adventurous group. Or can this be explained in another manner? ENDNOTES BK-CLA-GRIFFIN_2E-230108-Chp05.indd 193 Endnotes provide an opportunity for further independent study relevant to each chapter. 1. Taronga Zoo Sydney. (2023). 1916 to Now. Available online: https://taronga.org.au/ about/history-and-culture/sydney. 2. Taronga Zoo Sydney. (2023). 1916 to Now. Available online: https://taronga.org.au/ about/history-and-culture/sydney. 3. Duckworth, A. (2017). Grit: Why Passion and Resilience Are the Secrets to Success. New York: Simon and Schuster. 4. Cook, D. A & Artino, A. R. (2016). Motivation to Learn: An Overview of Contemporary Theories. Medical Education, 50(10), 997–1014. 5. Steers, R. M., Bigley, G. A. & Porter, L. W. (2002). Motivation and Leadership at Work (7th ed.). New York: McGraw-Hill. See also Kanfer, R. (1991). Motivational Theory and Industrial and Organizational Psychology. In Handbook of Industrial and Organizational Psychology, eds. M. D. Dunnette & L. M. Hough (2nd ed., Vol. 1, pp. 75–170). Palo Alto, CA: Consulting Psychologists Press; and Ambrose, M. L. (1999). Old Friends, New Faces: Motivation Research in the 1990s. Journal of Management, 25(2), 110–31. 6. Kidwell, R. E., Jr. & Bennett, N. (1993, July). Employee Propensity to Withhold Effort: A Conceptual Model to Intersect Three Avenues of Research. Academy of Management Review, 429–56; see also Grant, A. (2008). Does Intrinsic Motivation Fuel the Prosocial Fire? Motivational Synergy in Predicting Persistence, Performance, and Productivity. Journal of Applied Psychology, 93(1), 48–58. 7. Pfeiffer, J. (1998). The Human Equation. Boston, MA: Harvard Business School Press. 8. See Fox, A. (2010, May). Raising Engagement. HR Magazine, 35–40. 9. Deci, E. L. & Ryan, R. M. (2000). The ‘What’ and ‘Why’ of Goal Pursuits: Human Needs and the Self-Determination of Behavior. Psychological Inquiry, 11(4), 227–69. 10. Banney, A. (2017, 24 March). How Much Money Do Australians Need to Be Happy? Finder. Available online: https://www.finder. com.au/how-much-money-do-australiansneed-to-be-happy. 11. Seligman, M. (2012, 20 February). Martin Seligman at St Peter’s College. YouTube video. Available online: https://youtu.be/ OxxBV7tg1wg. 12. Taylor, F. W. (1911). Principles of Scientific Management. New York: Harper & Row. 13. Mayo, E. (1945). The Social Problems of an Industrial Civilization. Boston, MA: Harvard University Press; Rothlisberger, F. J. & Dickson, W. J. (1939). Management and the Worker. Boston, MA: Harvard University Press. BK-CLA-GRIFFIN_2E-230108-Chp05.indd 194 14. Bandura, A. (1997). Self-Efficacy: The Exercise of Control (p. 3). New York: W.H. Freeman. 15. Judge, T. A., Jackson, C. L., Shaw, J. C., Scott, B. A. & Rich, B. L. (2007). Self-Efficacy and Work-Related Performance: The Integral Role of Individual Differences. Journal of Applied Psychology, 92, 107–27. 16. Salancik, G. R. & Pfeiffer, J. (1977, September). An Examination of Need-Satisfaction Models of Job Attitudes. Administrative Science Quarterly, 427–56. 17. Amabile, T. & Kramer, S. (2010, January– February). What Really Motivates Workers. Harvard Business Review, 44–5. 18. Maslow, A. H. (1943). A Theory of Human Motivation. Psychological Review, 50, 370–96; Maslow, A. H. (1954). Motivation and Personality. New York: Harper & Row. Maslow’s most famous works include Maslow, A. H., Stephens, D. C. & Heil, G. (1998). Maslow on Management. New York: John Wiley and Sons; and Maslow, A. H. & Lowry, R. (1999). Toward a Psychology of Being. New York: John Wiley and Sons. 19. Mann, A. (2018, 15 January). Gallup: Workplace. Available online: https://www. gallup.com/workplace/236213/why-needbest-friends-work.aspx. 20. See Professionals Sick of Old Routine Find Healthy Rewards in Nursing. USA Today, 16 August 2004, 1B, 2B. 21. See Adler, N. (2007). International Dimensions of Organizational Behavior (5th ed.). Cincinnati, OH: Southwestern Publishing. 22. Cianci, R. & Gambrel, P. A. (2003) Maslow’s Hierarchy of Needs: Does It Apply in a Collectivist Culture. Journal of Applied Management and Entrepreneurship, 8(2), 143–61; Moore, B., Chavez, F. L. C. & O’Neal, C. J. (2021). Challenging Maslow’s Hierarchy of Needs: Exploring Perspectives of Latino Migrant Adolescents in U.S. Agriculture. Spring Research Forum Abstract Winner, Artifacts Journal, University of Missouri, part of issue 19. Available online: https:// artifactsjournal.missouri.edu/2021/07/ challenging-maslows-hierarchy-of-needsexploring-perspectives-of-latino-migrantadolescents-in-u-s-agriculture. 23. Wahba, M. A. & Bridwell, L. G. (1976, April). Maslow Reconsidered: A Review of Research on the Need Hierarchy Theory. Organizational Behavior and Human Performance, 212–40. 24. Alderfer. C. P. (1972). Existence, Relatedness, and Growth. New York: Free Press. 25. Alderfer. C. P. (1972). Existence, Relatedness, and Growth. New York: Free Press. 26. Herzberg, F., Mausner, B. & Synderman, B. (1959). The Motivation to Work. New York: John Wiley and Sons; Herzberg, F. (1968, January–February). One More Time: How Do You Motivate Employees? Harvard Business Review, 53–62. 27. Herzberg, F., Mausner, B. & Synderman, B. (1959). The Motivation to Work. New York: John Wiley and Sons. 28. Herzberg, F., Mausner, B. & Synderman, B. (1959). The Motivation to Work. New York: John Wiley and Sons. 29. Herzberg, F., Mausner, B. & Synderman, B. (1959). The Motivation to Work. New York: John Wiley and Sons. 30. Griffin, R. W. (1982). Task Design: An Integrative Approach. Glenview, IL: Scott, Foresman. 31. Pinder, C. (2008).Work Motivation in Organizational Behavior (2nd ed.). Upper Saddle River, NJ: Prentice Hall. 32. Herzberg, F. (1966). Work and the Nature of Man. Cleveland, OH: World Publishing; Bookman, V. M. (1971, Summer). The Herzberg Controversy. Personnel Psychology, 155–89; Grigaliunas, B. & Herzberg, F. (1971, February). Relevance in the Test of Motivation-Hygiene Theory. Journal of Applied Psychology, 73–9. 33. Dunnette, M., Campbell, J. & Hakel, M. (1967, May). Factors Contributing to Job Satisfaction and Job Dissatisfaction in Six Occupational Groups. Organizational Behavior and Human Performance, 143–74; Hulin, C. L. & Smith, P. (1967, October). An Empirical Investigation of Two Implications of the Two-Factor Theory of Job Satisfaction. Journal of Applied Psychology, 396–402. 34. Adler, N. (2007). International Dimensions of Organizational Behavior (5th ed.). Cincinnati, OH: Southwestern Publishing. 35. Grabowski, D., Chudzicka-Czupała, A. & Stapor, K. (2021). Relationships Between Work Ethic and Motivation to Work from the Point of View of the Self-Determination Theory. PLOS One, 16(7), e0253145. https:// doi.org/10.1371/journal.pone.0253145. 36. McClelland, D. C. (1961). The Achieving Society. Princeton, NJ: Nostrand. See also McClelland, D. C. (1988). Human Motivation. Cambridge, UK: Cambridge University Press. 37. Stahl, M. J. (1983, Winter). Achievement, Power, and Managerial Motivation: Selecting Managerial Talent with the Job Choice Exercise. Personnel Psychology, 775–90. 38. Schachter, S. (1959). The Psychology of Affiliation. Palo Alto, CA: Stanford University Press. 10/07/23 7:55 PM 10/07/23 7:55 PM Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 15 10/08/23 11:53 AM xvi Get Complete eBook Download By email at student.support@hotmail.com Guide to the online resources FOR THE INSTRUCTOR Cengage is pleased to provide you with a selection of resources that will help you to prepare your lectures and assessments, when you choose this textbook for your course. Log in or request an account to access instructor resources at au.cengage.com/instructor/account for Australia or nz.cengage.com/instructor/account for New Zealand. MINDTAP Premium online teaching and learning tools are available on the MindTap platform - the personalised eLearning solution. MindTap is a flexible and easy-to-use platform that helps build student confidence and gives you a clear picture of their progress. We partner with you to ease the transition to digital – we’re with you every step of the way. MindTap for Griffin’s Organisational Behaviour: Engaging people and organisations 2nd edition is full of innovative resources to support critical thinking, and help your students move from memorisation to mastery! Includes: • Griffin’s Organisational Behaviour 2nd edition eBook • Concept clips • Common-sense pre-tests • Media quizzes • Revision questions • Self-assessment activities • You Make the Decision simulation activities. MindTap is a premium purchasable eLearning tool. Contact your Cengage learning consultant to find out how MindTap can transform your course. INSTRUCTOR’S MANUAL The Instructor’s manual includes: • Learning outcomes • Guide your learning questions • Chapter outlines • Box feature summaries and solutions for Ethical Dilemma and end-of-chapter Case study questions • Tutorial activities • Group exercises • Discussion questions for MindTap You Make the Decision simulations. Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 16 10/08/23 11:53 AM Get Complete eBook Download By email at student.support@hotmail.com GUIDE TO THE ONLINE RESOURCES xvii SOLUTIONS MANUAL The Solutions Manual contains solutions for Guide your learning questions and Revision Quiz solutions from the book. COGNERO® TEST BANK A bank of questions has been developed in conjunction with the text for creating quizzes, tests and exams for your students. Create multiple test versions in an instant and deliver tests from your lms, your classroom, or wherever you want using Cognero. Cognero test generator is a flexible online system that allows you to import, edit, and manipulate content from the text’s test bank or elsewhere, including your own favourite test questions. POWERPOINT™ PRESENTATIONS Use the chapter-by-chapter PowerPoint slides to enhance your lecture presentations and handouts by reinforcing the key principles of your subject. ARTWORK FROM THE TEXT Add the digital files of graphs, pictures and flow charts into your learning management system, use them in student handouts, or copy them into your lecture presentations. FOR THE STUDENT MINDTAP MindTap is the next-level online learning tool that helps you get better grades! MindTap gives you the resources you need to study – all in one place and available when you need them. In the MindTap Reader, you can make notes, highlight text and even find a definition directly from the page. If your instructor has chosen MindTap for your subject this semester, log in to MindTap to: • Get better grades • Save time and get organised • Connect with your instructor and peers • Study when and where you want, online and mobile • Complete assessment tasks as set by your instructor. When your instructor creates a course using MindTap, they will let you know your course key so you can access the content. Please purchase MindTap only when directed by your instructor. Course length is set by your instructor. Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 17 10/08/23 11:53 AM xviii Get Complete eBook Download By email at student.support@hotmail.com PREFACE Welcome to the second Australasian edition of Organisational Behaviour, a book that has had 13 editions in the United States and is now expertly and uniquely adapted for the Australasian organisational context. The adaptation process continues after the first edition and involves three accomplished Australian authors with student-centred learning at the heart of their efforts. Lead author Dr Andrew Creed of Deakin University works with Associate Professor Lynn Gribble of UNSW and Dr Moira Watson of Murdoch University to bring timely and impactful revisions in this new edition. Their biographies reveal the breadth and depth of experience in the teaching and researching of management and organisational behaviour, both locally and globally. This new edition of an acclaimed, widely utilised book draws on their insights and delivers a fresh and practical Australasian perspective designed perfectly for the needs of learners in this region. An author’s-eye view of the development process We started our work by carefully reviewing the existing successful book, and looking at other books in the Australasian market, new and current developments in the field of organisational behaviour, and expert reviewer feedback about the strengths of all available books on organisational behaviour (OB). The feedback informs the structure that provides thorough and comprehensive coverage of the major topics within the field of organisational behaviour, contextualised to organisations in Australia, New Zealand and the Asia Pacific region generally, while also providing a framework that can be effectively covered in a single term. We are especially thankful for the expert Indigenous cultural advisory work that is a special feature of the new edition. Many of the case examples and the whole language structure of the text have been challenged and changed for the better for readers through a First Nations Australian lens. While still not perfect for a significantly westernised field of thinking, the result is a more culturally safe rendering of OB and it will evolve further that way as feedback and new editions come in future. Some of the other new features in the second edition include: • new reflective questions for each Response to OB in the real world • new Self-assessment features • updated references in each chapter to broaden learning and research avenues • realignments of each chapter Introduction to the Guide your learning questions • enhanced critical perspective approach applied in every chapter • new examples and cases throughout. We applied an integrated learning model that demonstrates how all the topics within the book relate to one another. This model is developed in Chapter 1. It is then revisited at the beginning of each part. The reader is reminded of how earlier chapters led to the current discussion and where the discussion is headed next. Our goals are to make you more successful in your life and career by helping you understand yourself, organisations and the role of organisational behaviour (OB) in your personal career and success. We also want to cultivate an understanding of, and ability to apply, knowledge about individual and group behaviour in organisations and an appreciation of how the entire organisational system operates. This will enhance your understanding of how to flexibly apply the OB concepts that are appropriate for different problems or situations. Finally, we want to ensure that you have a complete understanding of the modern OB context, including ethics, individual differences, diversity, equity, leadership, motivation, teamwork, power and influence, learning, competitive advantage, technology, organisation change and development, Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 18 10/08/23 11:53 AM Get Complete eBook Download By email at student.support@hotmail.com PREFACE xix and the global context. What you have in your hands is a book with both a long track record plus a fresh perspective on OB. Relevant and authentic learning leaps from these pages and, combined with the skills of your teacher, the exciting and powerful world of engaging relationships in the workplace will open up for you in the most memorable ways. We wish you enjoyment and deep learning. Dr Andrew Creed Associate Professor Lynn Gribble Dr Moira Watson Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 19 10/08/23 11:53 AM xx Get Complete eBook Download By email at student.support@hotmail.com ABOUT THE AUTHORS Ricky W. Griffin holds the Blocker Chair in Business and is University Distinguished Professor of Management in the Mays Business School at Texas A&M University. He has also served as Head of the Department of Management, Executive Associate Dean and Interim Dean at Mays. Ricky is both a member and Fellow of the Academy of Management and has served as program chair and division chair of the organisation’s Organizational Behavior division. He also served as editor of the Journal of Management. Ricky’s research has appeared in Administrative Science Quarterly, Academy of Management Review, Academy of Management Journal, Journal of Management and several other journals. He has also edited several scholarly books, most recently The Dark Side of Organizational Behavior. He has authored or co-authored several leading textbooks, most of which have been revised across multiple editions. His books have also been translated or adapted for use in over a dozen other countries. Ricky teaches international management, organisational behaviour, human resource management and general management. He has taught both undergraduate and graduate students, participated in numerous executive training programs, and has lectured in London, Paris, Warsaw, Geneva, Berlin, Johannesburg, Tokyo, Hong Kong and Sydney. Jean M. Phillips is a Professor of Human Resource Management in the School of Labor and Employment Relations at Penn State University. Jean earned her PhD from Michigan State University in Business Management and Organizational Behavior. Her interests focus on leadership and team effectiveness, recruitment and staffing, and the processes that lead to employee and organisational success. Jean was among the top 5 per cent of published authors in the Journal of Applied Psychology and Personnel Psychology during the 1990s and she received the 2004 Cummings Scholar Award from the Organizational Behavior Division of the Academy of Management. She has published over 30 research articles and nine books, including Strategic Staffing (3e, 2014), Organizational Behavior (2e, 2013), Human Resource Management (2013), Managing Now (2008), and the five-book Staffing Strategically (2012) series for the Society for Human Resource Management. Jean was also the founding co-editor of the Organizational Behavior/Human Resource Management series for Business Expert Press. Her applied work includes leveraging employee surveys to enhance strategic execution and business performance, developing leadership and teamwork skills, and creating and evaluating strategic recruitment and staffing programs. Jean has taught online and traditional courses in Human Resource Management and Organizational Behavior in the United States, Iceland and Singapore. Stanley M. Gully is a Professor of Human Resource Management in the School of Labor and Employment Relations at Penn State University. Stanley holds MA and PhD degrees in Industrial/Organizational Psychology from Michigan State University and he is a Fellow of the Society for Industrial and Organizational Psychology. Stanley has authored, co-authored, edited and presented numerous papers, books and book chapters on a variety of topics, including leadership, team effectiveness, motivation, training, staffing and recruitment. He is a founding co-editor of the Organizational Behavior/Human Resource collection of Business Expert Press. Stanley is ranked in the top 50 of the most influential scholars who received their degrees since 1991 based on impact inside and outside of the Academy of Management and he has won awards for his teaching, research and service. Stan has taught courses at the undergraduate, master’s, executive and PhD levels covering a wide range of topics including team effectiveness, leadership, organisational learning and innovation, staffing, human Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 20 10/08/23 11:53 AM Get Complete eBook Download By email at student.support@hotmail.com ABOUT THE AUTHORS xxi resource management, training and statistics. He has taught using traditional and hybrid technologies in the United States, Iceland, Singapore and Indonesia. His applied work includes, but is not limited to, management at UPS, design of leadership training programs, implementation of team communication interventions and implementation of a multi-source feedback system. Dr Andrew Creed (PhD, Exon) teaches, researches and consults in organisational behaviour, organisation development, sustainability and international business in Australasia. Dr Creed has published in highimpact journals, including Journal of Business Research, Personnel Review, Journal of Cleaner Production, Current Issues in Tourism, Knowledge Management Research and Practice, and European Business Review, and with publishers including Cengage, Palgrave, Emerald, Oxford University Press and Wiley. He has extensive experience in businesses, at Deakin University, and other educational settings in Australia, the United Kingdom and the United States. Other roles have included Adjunct Associate Professor in the online MBA at University of Maryland University College, USA; teacher and instructional designer in the TAFE and ACE sectors in Australia; owner-manager of a bookshop and, publishing and consulting businesses in Australia; member of a family-run healthcare practice; and an area manager in south-west Victoria for the federal government’s New Enterprise Incentive Scheme (NEIS). Andrew has received several professional awards, including the 2006 and 2015 Vice Chancellor’s Award and commendation for Teaching and Learning at Deakin University. Andrew holds a Graduate Certificate in Higher Education (Deakin), PhD (University of Exeter, UK), Master of Business Administration (University of Maryland University College) and Bachelor of Science (University of the State of New York). He is active in his local communities on both Wadawurrung and Gunditjmara lands, and in global collaborations. Dr Lynn Gribble (SFHEA, CMALT, PhD, MLLR, MEd) is an Associate Professor and education-focused academic at UNSW Business School, School of Management. Recognised as a leader in teaching and learning, through many awards including a citation from the Australian Awards for University Teaching (AAUT) for Outstanding Contribution to Student Learning – Innovation and Leadership (2020), Australia and New Zealand regional Global Innovation Award recipient by TurnItIn for her work in student feedback to provide growth and transparency (2019), UNSW Outstanding Technology-Enabled Teaching Innovation Award (2014), UNSW Vice Chancellor’s Teaching Excellence Award and UNSW Business School Facilitation Award for Teaching Excellence (2011). She is also recognised for her publications having earned best paper by her peers at the Australian Journal of Career Development in 2010 for ‘Employees in Outplacement Services: Do They Really Get the Help that is Needed?’ and more recently by ASCILITE (2021) Personal Narratives for Professional Recognition. As a former Human Resources Learning and Development Executive, Lynn has delivered thousands of hours of training and content in corporations around the world as well as in universities. She has contributed widely to teaching cases in many publications. Lynn teaches UN Sustainable Development Goals and ethics, international management, organisational behaviour, human resource management and general management. She has taught both undergraduate and postgraduate students, as well as MBA programs and numerous executive development programs, across South-East Asia, China and Australia. Dr Moira Watson is a seasoned facilitator, now an academic in the Murdoch Business School and a Research Fellow in the School of Nursing at Murdoch University in Western Australia. She has served as Associate Dean Accreditation and Quality Standards, MBA Director, and on a range of committees. She earned her PhD in management from Edith Cowan University. She has taught a range of courses in organisational behaviour, leadership, change, and strategy at the undergraduate, master’s and executive master’s level using standard and hybrid technologies in Australia, Singapore, Dubai and Myanmar. Moira has been Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 21 10/08/23 11:53 AM xxii Get Complete eBook Download By email at student.support@hotmail.com ABOUT THE AUTHORS recognised as a leader in organisational behaviour and management having been awarded three Excellence in Learning and Teaching Awards. Moira is passionate about assisting individuals to navigate through their course requirements and to achieve their personal and strategic goals. She continually seeks to challenge, engage and inspire her students and enjoys constructing learning spaces that bring together the best practices from the world of work and the world of theory. In working with students Moira uses authentic learning focused on real world, complex problems, and case studies designed around problem solving. Moira’s focus enables students to operate in communities of learning exploring multiple demands as collaborative explorers building their understanding of contemporary business. Moira is an experienced Chair and Non-Executive Director in a range of not-for-profit organisations with a background as a senior leader in ASX listed companies in mining and construction, and banking and finance, and as an executive director in government. Moira is a Graduate and Fellow of the Australian Institute of Company Directors, a Fellow of the Australian Institute of Management, and a Fellow of the Governance Institute of Australia. Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 22 10/08/23 11:53 AM Get Complete eBook Download By email at student.support@hotmail.com xxiii ACKNOWLEDGEMENTS Andrew Creed The original book by Ricky Griffin, Jean Phillips and Stanley Gully is like a cornerstone in the discipline of organisational behaviour in the northern hemisphere. My great appreciation to those expert authors for providing the perfect intellectual foundation. Kudos to my colleagues Lynn and Moira. Together we have worked hard to make this second edition the most refined and relevant OB book for Australasia, especially after the rugged few years of the global COVID-19 pandemic. With such a big rethink in how people relate to each other in organisations, it was the perfect time to complete this edition so thoroughly. The team at Cengage have weathered as many dramatic changes as anyone, so terrific thanks to them for resiliently bringing this fruitful book to the market in a fresh new format. I have a couple of key friends and mentors in my life and career. They know who they are and I thank them for deep conversations and excellent advice of the kind that leads to insights in a book essentially about relationships. My family, of course, are the unconditional ones in my life who are the support beneath it all. And my students have all been participants in constructing the deep knowledge finding its way into books like this. Great acknowledgement goes to you all. Lynn Gribble My thanks go to working with this amazing team to produce a contemporary and inclusive view of Organisational Behaviour. The inclusion of Indigenous consideration is significant in an area which is yet to broaden its research focus. I also want to acknowledge my amazing daughter who reminds me of the broad village who can develop this understanding. I’m grateful for her flexibility with my work schedule. To my own ‘personal board’, mentors, friends and family who enable and support me, no matter what the pursuit. You all make it possible. Moira Watson This edition is dedicated to my husband, Peter, and two daughters, Emma and Laura, for their unstinting support, patience and willingness to listen and challenge my accounts of researching, writing and rewriting. I also acknowledge my co-authors, Andrew Creed and Lynn Gribble, along with my many colleagues who happily discussed different perspectives on organisational behaviour and management, thereby making this book richer. Other acknowledgements Cengage and the authors would also like to thank the following reviewers for their incisive and helpful feedback: • Stephen Tan (Murdoch University) • Warren Read (Murdoch University) • David Qian (Swinburne Institute of Technology) • Kim Southey (University of Southern Queensland) • Sarah Wright (University of Canterbury) • Yuen Lam Bavik (Deakin University) Cengage and the authors thank Mark Lock for his work as cultural sensitivity adviser for this edition. Every effort has been made to trace and acknowledge copyright. However, if any infringement has occurred, the publishers tender their apologies and invite the copyright holders to contact them. Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp00_Prelims.indd 23 10/08/23 11:53 AM 2 Get Complete eBook Download By email at student.support@hotmail.com PART 1 INTRODUCTION TO ORGANISATIONAL BEHAVIOUR How does the environment matter? Why do individuals do what they do? Why do groups and teams do what they do? • Individual characteristics • Individual values, perceptions, and reactions • Motivating behaviour • Motivating behaviour with work and rewards • Groups and teams • Decision making and problem solving • Communication • Conflict and negotiation Why does leadership matter? What makes managers and organisations effective? • Enhancing performance behaviour • Enhancing commitment and engagement • Promoting citizenship behaviours • Minimising dysfunctional behaviours • Traditional leadership approaches • Modern leadership approaches • Power, influence, and politics How do organisational characteristics influence effectiveness? • Organisation structure and design • Organisation culture • Change management How does the environment matter? Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 2 12/08/23 11:44 AM Get Complete eBook Download By email at student.support@hotmail.com Chapter 1 An overview of organisational behaviour Chapter 2 The changing environment of organisations 3 The two chapters in Part 1 introduce the field of organisational behaviour while establishing a unique integrated learning model that incorporates a critical perspective. Readers will discover an integrative five-level model of analysis with the dimensions of environment, individual, groups, leadership and organisation. The chapters in Part 1 demonstrate how the five dimensions are interrelated and implore managers to understand, rather than control, human behaviour in organisations. Managers strive to make their organisations as effective and successful as possible. To do this they rely on assets such as financial reserves and earnings, technology and equipment, raw materials, information, and operating systems and processes. At the centre of everything are the employees who work for the organisation. It is usually their talent, effort, skill and ability that differentiates effective from less effective organisations. It is critical, then, that managers understand how the behaviours of their employees impact on organisational effectiveness. In general, managers work to enhance employee performance behaviours, commitment and engagement, and citizenship behaviours and to minimise various dysfunctional behaviours, such as racism, sexism, ageism, and other conflict-generating phenomena. A number of environmental, individual, group and team, leadership and organisational characteristics can make the manager’s work easier or more difficult, depending on how well they understand organisational behaviour. This model will be more fully developed in Chapter 1 and will serve as a roadmap for your study of organisational behaviour throughout this book. Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 3 12/08/23 11:44 AM 4 Get Complete eBook Download By email at student.support@hotmail.com CHAPTER 1 AN OVERVIEW OF ORGANISATIONAL BEHAVIOUR Learning outcomes After studying this chapter, you should be able to: LO 1.1 describe how organisational behaviour impacts both personal and organisational success LO 1.2 explain the basic management functions and essential skills that comprise the management process in the context of organisational behaviour LO 1.3 describe the strategic context of organisational behaviour and discuss the relationships between strategy and organisational behaviour LO 1.4 describe contextual perspectives on organisational behaviour LO 1.5 LO 1.6 describe the role of organisational behaviour in managing for effectiveness and discuss the role of research in organisational behaviour summarise the framework around which this book is organised. Guide your learning 1 What is an organisation and why should we care about its behaviour? (LO1) 2 What makes a manager good and does it matter whether they are nice people? (LO2) 3 Does understanding organisational behaviour simply mean being able to manipulate people to do jobs they don’t want to do? (LO3) 4 Are workers cogs in a machine or something else? (LO4) 5 Is it more important for an organisation to be effective than efficient? (LO5) 6 If managing people is like herding cats, is the study of organisational behaviour unable to have a coherent structure? (LO6) Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 4 12/08/23 11:44 AM Get Complete eBook Download By email at student.support@hotmail.com CHAPTER 1: An overview of organisational behaviour Managing growth at MTB Direct Jen Geale is co-founder and general manager of one of Australia’s fastest growing companies. The business is called MTB Direct (formerly Mountain Bikes Direct) and it sells mountain bikes without any storefronts and did so with total sales exceeding $7 million in 2017–18, which doubled the previous year’s earnings.1 In mid-2021 the business expanded its operations into New Zealand. Reports from both 2020 and 2021 indicated rapidly rising online sales as COVID-19 lockdowns continued and people turned to the great outdoors for respite and recreation. This is a marketing and operational success in a non-traditional medium for such a physical product. The business started in 2012 with located stores but transitioned to wholly online in 2015, taking advantage of burgeoning technologies, which enabled its meteoric growth to really take off. Jen Geale embraced an online emphasis to cut overhead costs and positioned the company to compete better with international retailers in the online space. This turned out to be a stroke of genius (or luck) because when the COVID-19 lockdowns occurred the business was already doing the whole ‘work-from-home’ thing and was positioned to become a front-runner in the mountain bikes online sector. Having already grown from a husband–wife start-up to now employing 32 people, the growth horizon remains positive. Geale says, ‘…my office is just a desk in my house! We operate a fully decentralised team, with no office. Our customer service and technical staff all work from home’. Geale realised that MTB Direct’s rapid growth and expansion, employing staff based remotely across Australia and beyond, needed to be closely monitored, and that its employees needed to continue feeling like an important part of the team.2 5 OB in the Real World Source: Shutterstock.com/Kuznetcov_Konstantin Question Imagine that MTB Direct’s founders asked you for advice during the early days of moving the business wholly online. What advice would you give them about the role of its people in its future success and how to set up the company to maximise employee innovation, trust and loyalty when the interactions they have at work are mostly virtual rather than face-to-face? On Geale’s part, she explains that a clever application of social media technologies has helped to harness the essential human need for interaction and human relationships in MTB Direct’s virtual workplace. Figure 1.1 The success of any organisation is often determined by how effectively managers can enhance the performance behaviours of their employees, enhance their commitment to and engagement with the organisation, promote citizenship behaviours and minimise dysfunctional behaviours. Source: iStock.com/xavierarnau Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 5 12/08/23 11:44 AM 6 GetTO Complete eBook Download By email at student.support@hotmail.com PART 1: INTRODUCTION ORGANISATIONAL BEHAVIOUR INTRODUCTION Regardless of their size, scope, or physical or virtual location, all organisations have at least one thing in common – they are comprised of people engaged in various relationships and expressing behaviours. It is these people who make decisions about the strategic direction of a firm, it is they who acquire the resources the firm uses to create new products, and it is they who sell those products. People manage a firm’s corporate headquarters, its warehouses and its information technology and determine whether things run either efficiently or effectively, and ideally both. Staff must adapt through either minor changes to procedures and systems or major changes to structure, strategy, and operations, such as those imposed during the COVID-19 pandemic crisis. No matter how effective a manager might be, all organisational successes – and failures – are the result of the behaviours of many people. Indeed, no manager can succeed without the assistance of others. Thus, any manager – whether responsible for a big business such as Google, David Jones, Telstra, Apple, Starbucks or Qantas; for a niche business such as MBT Direct, the Collingwood Football Club or an Epworth Hospital facility; or for a local Domino’s Pizza restaurant or neighbourhood dry-cleaning establishment – must strive to understand the people who work in the organisation. This book is about those people. It is also about the organisation itself and the managers who operate it: distinguishing the good managers and workers from the bad ones, and understanding the differences between cooperation, control, and manipulation in relationships. Together, the study of organisations and the characteristics and actions of the people who work in them constitute the field of organisational behaviour (OB). Our starting point in exploring OB begins with a more detailed discussion of its meaning and its importance to employees, business owners and managers. 1.1 WHAT IS ORGANISATIONAL BEHAVIOUR? What exactly is meant by the term ‘organisational behaviour’? And why should it be studied? Answers to these two fundamental questions will both help establish our foundation for discussion and analysis and help you better appreciate the rationale as to how and why understanding the field can be of value to you in the future. The meaning of organisational behaviour organisational behaviour The study of human behaviour in organisational settings, the interface between human behaviour and the organisation, and the organisation itself Organisational behaviour (OB) is the study of human behaviour in organisational settings, of the interface between human behaviour and the organisation, and of the organisation itself.3 Although we can focus on any one of these three areas, we must also remember that all three are ultimately necessary for a comprehensive understanding of organisational behaviour. For example, we can study individual behaviour without explicitly considering the organisation. But because the organisation influences and is influenced by the individual, we cannot fully understand the individual’s behaviour without learning something about the organisation. Similarly, we can study organisations without focusing explicitly on the people within them. But again, we are looking at only a portion of the puzzle. Eventually, we must consider the other pieces as well as the whole. Essentially, then, OB helps explain and predict how people and groups interpret events, react and behave in organisations, and describes the role of organisational systems, structures and process in shaping behaviour. Figure 1.2 illustrates this view of organisational behaviour. It shows the linkages among human behaviour in organisational settings, the individual–organisation interface, the organisation itself and the environment surrounding the organisation. Each individual brings to an organisation a unique set of Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 6 12/08/23 11:44 AM Get Complete eBook Download By email at student.support@hotmail.com CHAPTER 1: An overview of organisational behaviour 7 Environment Human behaviour in organisational settings The individual–organisation interface The organisation Environment Figure 1.2 The nature of organisational behaviour The field of organisational behaviour attempts to understand human behaviour in organisational settings, the organisation itself, and the individual–organisation interface. As illustrated here, these areas are highly interrelated. Thus, although it is possible to focus on only one of these areas at a time, a complete understanding of organisational behaviour requires knowledge of all three areas. personal characteristics and a unique personal background and set of experiences from other organisations. Therefore, in considering the people who work in their organisations, managers must look at the unique perspective each individual brings to the work setting. For example, suppose managers at Bunnings review data showing that employee turnover within the firm is gradually but consistently increasing. Further suppose that they hire a consultant to help them better understand the problem. As a starting point, the consultant might analyse the types of people the company usually hires. The goal would be to learn as much as possible about the nature of the company’s workforce as individuals – their expectations, their personal goals and so forth. The systems and operations of Bunnings naturally impact upon the workload and expectations of the managers and staff (see Figure 1.3). It is at this interface between systems and people where a better understanding of organisational behaviour can improve the management of change and continuous improvement. Individuals do not work in isolation. They come in contact with other people and with the organisation in a variety of ways. Points of contact include managers, co-workers, the formal policies and procedures of the organisation, and various changes implemented by the organisation. In addition, over time, individuals change, as a function of personal experiences and maturity as well as through work experiences and organisational developments. The organisation, in turn, is affected by the presence and eventual absence of the individual. Clearly, then, managers must also consider how the individual and the organisation interact. Thus, the consultant studying turnover at Bunnings might next look at the orientation procedures and initial training for newcomers to the organisation. The goal of this phase of the study would be to understand some of the dynamics of how incoming individuals are introduced to and interact with the broader organisational context. Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 7 12/08/23 11:44 AM 8 GetTO Complete eBook Download By email at student.support@hotmail.com PART 1: INTRODUCTION ORGANISATIONAL BEHAVIOUR Figure 1.3 Managers at businesses like Bunnings need to understand individual employee behaviour, characteristics of the organisation itself, and the interface between individual behaviour and the organisation. Source: Shutterstock.com/Emagnetic An organisation, of course, exists before a particular person joins it and continues to exist after they leave. Thus, the organisation itself represents a crucial third perspective from which to view organisational behaviour. For instance, the consultant studying turnover would also need to study the structure and culture of Bunnings. An understanding of factors such as a firm’s performance evaluation and reward systems, its decision-making and communication patterns, and the structure of the firm itself can provide added insight into why some people choose to leave a company and others elect to stay. Clearly, then, the field of organisational behaviour is both exciting and complex. Myriad variables and concepts accompany the interactions just described, and together these factors greatly complicate the manager’s ability to understand, appreciate and manage others in the organisation. They also provide unique and important opportunities to enhance personal and organisational effectiveness. How organisational behaviour impacts personal success You may be wondering about the relevance of OB to your current study major or career path. You might be thinking, ‘I don’t know any organisational behaviourists. Why is this topic important?’ We field this question all the time from people unfamiliar with OB. The core of OB is being effective at work. Understanding how people behave in organisations and why they do what they do is critical to working effectively with and managing others. OB gives everyone the knowledge and tools they need to be effective at any organisational level. OB is an important topic for anyone who works or who will eventually work in an organisation, which is the case for most people. Moreover, OB is actually important to us as individuals from numerous perspectives. In our relationships with organisations, we may adopt any one of several roles or identities. For example, we can be consumers, employees, suppliers, competitors, owners or investors. Since most readers of this book are either present or future managers, we will adopt a managerial perspective throughout our discussion. The study of organisational behaviour can greatly clarify the factors that affect how managers manage. Hence, the field attempts to describe the complex human context of organisations and to define the opportunities, problems, challenges and issues associated with that realm. In your own experience interacting with other people in groups and organisations of all kinds, you will find a self-reflective capacity to be a valuable skill. Knowing yourself is one of the keys to knowing how to better interact with others. Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 8 12/08/23 11:44 AM Get Complete eBook Download By email at student.support@hotmail.com CHAPTER 1: An overview of organisational behaviour 9 Whenever managers are surveyed 10 to 15 years out of school and asked to identify the most important classes they ever took, OB is usually one of them. This is not because it made them technically better in their area of specialty, but because it made them more effective employees and better managers. As one expert has put it, ‘It is puzzling that we seek expert advice on our golf game but avoid professional advice on how we can deal with other people’.4 Using your knowledge of OB can help you to succeed faster in any organisation or career, which is why this book includes a variety of self-assessment tools that can enable you to know when is a good time to call in the experts. SELF-ASSESSMENT Global mindset A global mindset reflects your ability to influence people, groups and organisations from a variety of backgrounds and cultures.5 Multinational companies’ ability to create globally integrated systems depends on their ability to get employees, managers and executives to understand and adapt to the realities of a globalised economy.6 The ability to integrate talent from many parts of the world faster and more effectively than other companies is a source of a firm’s competitive advantage7 as well as your own personal competitive advantage. Please use the following scale in responding to the 10 questions below as honestly as possible. Don’t try to convince yourself of your own worth in each item, instead be raw and open about any shortcomings. When you are finished, follow the scoring instructions at the bottom to calculate your score. Then read more about what your score means, and how you can improve your global mindset. For appropriate perspective, discuss your selfassessment with someone from another cultural background. Strongly disagree Disagree Neutral Agree Strongly agree 1 2 3 4 5 1 In interacting with others, I assign equal status to people regardless of their national origin. 3 Finding myself in a new cultural setting is exciting. 2 4 5 6 7 8 9 10 global mindset Reflects your ability to influence people, groups and organisations from a variety of backgrounds and cultures I consider myself as equally open to ideas from other countries and cultures as I am to ideas from my own country and culture of origin. I see the world as one big marketplace. When I interact with people from other cultures, it is important to me to understand them as individuals. I regard my values to be a hybrid of values acquired from multiple cultures as opposed to just one culture. I am very curious when I meet someone from another country. I enjoy watching foreign films in their original language. In this interlinked world of ours, national boundaries are meaningless. I believe I can live a fulfilling life in another culture. Scoring: Add up your responses to identify your global mindset score. Interpretation: Because experiences influence global mindset in a positive or negative manner,8 you can take steps to improve your global mindset. Based on your score, you might consider some of the personal development activities identified below, or you might come up with others. If your score is between 10 and 20, you have a relatively low global mindset. Formal training/educational programs, self-study courses, university courses, or in-company seminars or management development programs can help you to increase your global mindset. >> Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 9 12/08/23 11:44 AM 10 GetTO Complete eBook Download By email at student.support@hotmail.com PART 1: INTRODUCTION ORGANISATIONAL BEHAVIOUR >> If your score is between 21 and 35, you have a moderate global mindset. You do not exhibit extremely high parochialism, but at the same time you are not as open to people from other cultures as you could be. In addition to the self-development activities listed above, you might consider joining some culturally diverse student organisations and making a point of befriending some people from other cultures to gain more experience and become more comfortable with people from other cultures. If your score is between 36 and 50, you have a high global mindset. This means that you are open to meeting people from a variety of cultures, and are comfortable with global diversity. This does not mean you cannot improve further! Joining international student organisations, working with international volunteer organisations and befriending people from a variety of cultures will further develop your global mindset. Source: Adapted from Gupta, A. K. & Govindarajan, V. (2002). Cultivating a global mindset. Academy of Management Executive, 16(1), 116–26; Kefalas, A. G. & Neuland, E. W. (1997). Global mindsets: an exploratory study. Paper presented at the Annual Conference of the Academy of International Business, Monterrey, Mexico, 4–7 October; Nummela, N., Saarenketo, S. & Puumalainen, K. (2004). Global mindset – a prerequisite for successful internationalisation? Canadian Journal of Administrative Sciences, 21(1), 51–64. After completing the self-assessment, answer the following questions: 1 Do you think that your score accurately reflects your global mindset? Why or why not? What, if anything, is 2 3 missing from the assessment? How do you think that having a higher global mindset will help you to be a better manager and leader? How can this characteristic help you succeed in your career? What might you do in the next year to increase your global mindset? Identify and discuss three specific behaviours, activities or other things that increase your global mindset. Personal success as a manager of people requires self-awareness, social intelligence, flexibility, humility and a sense of self-efficacy all mixed together (see Figure 1.4). We will discuss diversity and the importance of flexibly applying OB concepts to different people throughout the book. This will be especially relevant in Australia and Aotearoa/New Zealand considering their colonial and migration histories and cultural legacies. This chapter’s Self-assessment feature gives you the opportunity to better understand your global mindset, or the set of individual attributes that enable you to influence individuals, groups and organisations from diverse socio/cultural/institutional systems.9 Global mindset combines sociocultural intelligence and a global Figure 1.4 HSBC, a global financial services business, routinely sends its most promising young managers on international assignments. The purpose of this approach is to build a cohort of future top managers and leaders who have extensive international experience. Source: Jerome Favre/Bloomberg/Getty Images Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 10 12/08/23 11:44 AM Get Complete eBook Download By email at student.support@hotmail.com CHAPTER 1: An overview of organisational behaviour 11 business orientation.10 Most chief executives of large multinational organisations believe that having a strong cadre of globally minded leaders will strengthen their organisation’s competitiveness.11 Because global mindset is learned, experiences can influence it in a positive or negative manner.12 On the positive side, every year, when possible, the financial services giant HSBC sends promising new hires and managers into long-term business experiences abroad to build a cohort of international officers. Started in Hong Kong in 1865, HSBC today attends to approximately 40 million customers through branches and online operations in 64 different countries and territories around the world. To make a career at HSBC, managers must perform these international missions. This enables HSBC to develop a continuous supply of globally minded managers capable of cross-border learning. Similar approaches are pursued by other multinationals to enable them to transfer expertise and know-how across geographical, cultural and political divides.13 On the negative side, globalisation can sometimes move managers towards very competitive perceptions, where they resort to patriotism, tribalism and discrimination as strategic ways to manoeuvre and gain advantages that may breach cross-cultural expectations in the countries where the business operates. For example, a number of multinational manufacturing corporations have had to answer to allegations of employing under-age workers in sweatshop conditions. In 2022, Nestlé announced new cash incentives to families in cocoa-growing regions to encourage them to enrol their children in school. This was an effort to fight back against persistent occurrence of child labour on cocoa farms in parts of Africa. In 2019, Ralph Lauren, Gap Inc. and Uniqlo were among the global fashion companies identified by an Australian report to be failing to prevent the forced child labour endemic in their supply chains.14 This enters into a difficult debate about the varying standards and expectations about child labour in different parts of the world.15 Respect for culture and the global mindset Globalisation is sometimes seen as a force that runs counter to the cultural beliefs and practices of indigenous populations in various countries. On the one hand, indigenous labour and leadership can occasionally benefit from the opportunities provided by multinational enterprise and networks, while on the other hand a dilution of local cultural practice can occur and sometimes even exploitation, disrespect, and discrimination against the local people, many of whom may work for the global enterprise. Consider the situation of the Puutu Kunti Kurrama and Pinikura people, the traditional owners of Juukan Gorge in Western Australia, who had a reasonable working relationship with Rio Tinto. Nevertheless, a series of culturally insensitive decisions inside Rio Tinto led to detonation of a sacred site and the loss of a 46 000 year history of memories, art, artifacts and ancestral bonds in the quest to extract more iron ore to sell globally.16 The event shocked the community and the company, and the CEO was forced to resign. Aboriginal man Ben Wyatt was appointed to the Board, and changes were made to company practices and government regulations. In 2022, Rio Tinto signed on to a heritage protection plan with the Yinhawangka Aboriginal Corporation to plan the Western Range iron ore project in the Pilbara.17 In recognition of cultural blindness in OB literature to First Nations Australians and Māori peoples of Aotearoa/New Zealand, we provide further relevant examples throughout the book. So, the ways that managers culturally respond to diverse people and varied expectations can determine the success or failure of people management strategies and the organisation as a whole.18 Of course, the main aim is to be successful in organisational behaviour. How organisational behaviour impacts organisational success Organisations as a whole also benefit from OB. Imagine the difference between a company with motivated, engaged employees with clear goals aligned with the business strategy and one with unhappy employees, a lot of conflict, weak leadership and a lack of direction. Effectively implementing OB concepts and models Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 11 12/08/23 11:44 AM 12 GetTO Complete eBook Download By email at student.support@hotmail.com PART 1: INTRODUCTION ORGANISATIONAL BEHAVIOUR is what creates effective and successful companies. By appropriately applying OB knowledge about individuals, groups and the effect of organisational structure on worker behaviour, the conditions can be created that make organisations most effective. OB also helps companies perform well. A mounting body of evidence shows that an emphasis on the softer side of business positively influences bottom line results.19 For example, the top OB journals in 2022 showed active research topics as varied as working from anywhere, managing increased employee turnover, gig workers, stigmatised work, the effects of compensation on motivation, perceptions of gender at work, and how to manage issues of trust and cheating in workplaces. By listening to employees, recognising their work, building trust and behaving ethically, managers have boosted such performance measures as operating earnings, return on investment and stock price.20 In addition to financial performance and job satisfaction, OB also influences absenteeism and turnover. Reducing absenteeism and turnover can be worth millions of dollars to organisations through increased productivity and customer service and decreased staffing costs.21 The OB in practice feature highlights Canva’s attention to OB principles including ethics, organisational culture and values. OB in Practice Canva Canva has been making lists of best places to work in both Australia and the Philippines. It has also been growing fast along with its OB fame. Launching in 2012 as a design company, by 2022 Canva had office locations in Sydney, Manila and Beijing, and more than 2000 employees, plus 60 million users in 190 countries worldwide. So, what makes it great to work at Canva? Mainly it is an embrace of diversity and inclusion, along with a culture of celebrating people and achievements. Some practical examples are: • regular surveys to check on staff wellbeing and generate new ideas for helping people stay happy and healthy at work • a Vibe & Thrive allowance for staff to claim on any wellbeing activities they want, such as celebrations, healthcare and education • a Future of Work policy to support diversity hiring and cater to various backgrounds needs and personal priorities • an Employee Assistance Program with 13 paid sessions with relevant health practitioners • automatic calendar entries for Meet-Free Wednesday and ‘Sacred Lunch Hour’ • during pandemic lockdowns, paid Flex-Leave for anyone needing to take extended breaks • a Recharge Day for a shared team break • invitations for wellbeing providers to share tips for minimising anxiety, and keeping healthy boundaries between work and home • #diversity-inclusion and #lgbtqia-pride-club Slack channels for resources, support and inclusion. Canva is renowned for its workplace being colourful, bright, eclectic and designed to uplift the spirits, in line with precisely the same design principles the company offers to its clients. Staff get to enjoy bright colours, festive vibes and lively exhibits while they think, talk, work, eat and play. The office space is flexibly designed to open out into event spaces. Work objectives are not pushed relentlessly. Staff are able to work how they feel comfortable and where they feel comfortable. Flexible work is promoted, such as the option to work from home as necessary to manage family commitments. New staff members get lots of Canva merchandise. Those who achieve five years at Canva go onto the Wall of Fame via a personalised caricature, a new honorary title and a testimonial video from their close work colleagues. Every employee is given equity options as an ownership stake in Canva. The founders of Canva, Melanie Perkins and Cliff Obrecht, hold 30 per cent ($16 billion) equity and have given a lot of it to their Canva Foundation which, among other projects, is collaborating with GiveDirectly to give mobile payments amounting to $10 million to disadvantaged people in Southern Africa. In short, Canva is ticking many good people management boxes, and its flexibility and attention to relationships is positioning it as an organisational behaviour exemplar. The company faces OB challenges relating to growth. It recently raised new capital of $US200 million and planned to double its staff numbers in a year or so. Both good >> Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 12 12/08/23 11:44 AM Get Complete eBook Download By email at student.support@hotmail.com CHAPTER 1: An overview of organisational behaviour >> 13 and challenging things relating to organisational behaviour could come from such rapid growth, so it will be a benchmark company to keep watching. Canva also has a cultural education week where the aim is to learn from First Nations Australian communities.22 Source: Based on Kimmorley, S. (2018, 19 September). Canva, Australia’s Best Place To Work, Has A Farm, Indoor Climbing Wall, Gives Employees Equity And Birthday Cocktails. Business Insider Australia. https://www.businessinsider.com.au/canvasydney-office-culture-review-2018-9; Rogerson, J. (2021, 17 September). An inside look at how Canva incorporates diversity in its daily operations. SmartCompany. https://www.smartcompany.com.au/people-human-resources/canva-diversity-operations; Canival, R. (2021, 21 July). Canva, DHL Express named among best workplaces in Asia 2021. Philippine Daily Inquirer. business. inquirer.net/327501/canva-dhl-express-named-among-best-workplaces-in-asia-2021; Waters, C. (2021, 15 September). Canva founders to put their billions to good use. The Sydney Morning Herald. www.smh.com.au/business/ entrepreneurship/bigger-than-telstra-canva-s-valuation-doubles-in-five-months-to-55-billion-20210915-p58rq1.html; Canva. (2023). About. https://www.canva.com/about. Questions 1. 2. Why would ethics be important to a company like Canva? How can its focus on values and ethics improve its business performance? Appearing on ‘best places to work’ lists can increase an employer’s popularity, even among lower-qualified 3. applicants. The increased volume of applicants can be costly and time-consuming. What do you feel are the benefits and drawbacks to being on this type of list? Do you think that it is generally beneficial to be publicly recognised as a good employer? Why or why not? Do Canva’s values and culture appeal to you as a potential employee? Why or why not? One central value of organisational behaviour is that it isolates important aspects of the manager’s job and offers specific perspectives on the human side of management: people as organisations, people as resources, and people as people. To further underscore the importance of organisational behaviour to managers, we should consider this simple fact: year in and year out, most of the firms on Fortune’s list of the world’s most admired companies have impeccable reputations for valuing and respecting the people who work for them.23 Similarly, as the use of technology steadily increases, virtual teams become more common.24 The success of virtual teams, in turn, often depends on the type of leadership exhibited by managers. Organisational behaviour allows us to understand that as a leader of a virtual team, one must foster trust, encourage open dialogue and clarify guidelines. Clearly, then, an understanding of organisational behaviour can play a vital role in managerial work. To most effectively use the knowledge provided by this field, managers must thoroughly understand its various concepts, assumptions and premises. To provide this foundation, we next tie organisational behaviour even more explicitly to management and then turn to a more detailed examination of the manager’s job itself. The reason for a critical perspective It is all too easy in OB to study best practice examples and then believe that everything else good will follow. OB in practice is a messy field with complex interacting variables, especially the people involved with different values, attitudes, perceptions, personalities, motivations, learning abilities, power preferences and leadership styles. A critical perspective is one that understands this. It asks you to think like a devil’s advocate and consider the other side of every point of view. The Critical Perspective boxes in this and all the chapters choose a prominent OB issue and point out some salient questions and concerns about it. Look out for these boxes and ask yourself, ‘Can I acknowledge the different perspectives?’ Critical Perspective 1.2 THE MANAGERIAL CONTEXT OF ORGANISATIONAL BEHAVIOUR Virtually all organisations have managers with titles such as chief financial officer, marketing manager, director of public relations, vice president for human resources and plant manager. But probably no organisation Get has aComplete position called ‘organisational behaviour manager’. The reason for this is simple: eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 13 12/08/23 11:44 AM 14 GetTO Complete eBook Download By email at student.support@hotmail.com PART 1: INTRODUCTION ORGANISATIONAL BEHAVIOUR organisational behaviour is not a defined business function or area of responsibility similar to finance or marketing. Rather, an understanding of OB provides a set of insights and tools that all managers can use to carry out their jobs more effectively. The managerial context of OB can be viewed from the perspective of basic management functions, critical management skills and overall human resource management. Basic management functions and organisational behaviour Managerial work is fraught with complexity and unpredictability and enriched with opportunity and excitement. However, in characterising managerial work, most educators and other experts find it useful to conceptualise the activities performed by managers as reflecting one or more of four basic functions. These functions are generally referred to as planning, organising, leading and controlling. While these functions are often described in a sequential manner, in reality, most managerial work involves all four functions simultaneously. Similarly, organisations use many different resources in the pursuit of their goals and objectives. As with management functions, though, these resources can also generally be classified into four groups: human, financial, physical and/or information resources. As illustrated in Figure 1.5, managers combine these resources through the four basic functions, with the ultimate purpose of efficiently and effectively attaining the goals of the organisation. That is, the figure shows how managers apply the basic functions across resources to advance the organisation towards its goals. Planning Organising Leading Controlling Human resources Financial resources Physical resources Information resources Effective and efficient attainment of organisational goals Figure 1.5 Basic managerial functions Managers engage in the four basic functions of planning, organising, leading and controlling. These functions are applied to human, financial, physical and information resources with the ultimate purpose of efficiently and effectively attaining organisational goals. Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 14 12/08/23 11:44 AM Get Complete eBook Download By email at student.support@hotmail.com CHAPTER 1: An overview of organisational behaviour 15 Planning Planning, the first managerial function, is the process of determining the organisation’s desired future position and deciding how best to get there. The planning process at Sportsgirl, for example, includes studying and analysing the environment, deciding on appropriate goals, outlining strategies for achieving those goals, and developing tactics to help execute the strategies.25 OB processes and characteristics pervade each of these activities. Perception, for instance, plays a major role in environmental scanning, and creativity and motivation influence how managers set goals, strategies and tactics for their organisation. Larger corporations such as Westpac and Woolworths usually rely on their top management teams to handle most planning activities. In smaller firms, the owner usually takes care of planning. planning The process of determining an organisation’s desired future position and the best means of getting there Organising The second managerial function is organising – the process of designing jobs, grouping jobs into manageable units, and establishing patterns of authority among jobs and groups of jobs. This process produces the basic structure, or framework, of the organisation. For large organisations such as Apple and Toyota, that structure can be incredibly complex. The structure includes several hierarchical layers and spans myriad activities and areas of responsibility. Smaller firms can often function with a relatively simple and straightforward form of organisation. As noted earlier, the processes and characteristics of the organisation itself are a major theme of organisational behaviour. organising The process of designing jobs, grouping jobs into units, and establishing patterns of authority between jobs and units Leading Leading, the third major managerial function, is the process of motivating members of the organisation to work together towards the organisation’s goals. A Hungry Jack’s store manager, for example, must hire people, train them and motivate them. Major components of leading include motivating employees, managing group dynamics, responding to cultural diversity,26 and the actual process of leadership itself. These are all closely related to major areas of organisational behaviour. All managers, whether they work in a huge multinational corporation spanning dozens of countries or in a small neighbourhood business serving a few square city blocks, must understand the importance of leading. leading The process of getting the organisation’s members to work together towards the organisation’s goals Figure 1.6 Leading is a major part of the jobs of most managers. This manager is presenting information to a team in an effort to lead them to perform at a higher level. Source: Getty Images Plus/E+/xavierarnau Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 15 12/08/23 11:44 AM 16 GetTO Complete eBook Download By email at student.support@hotmail.com PART 1: INTRODUCTION ORGANISATIONAL BEHAVIOUR Controlling The fourth managerial function, controlling, is the process of monitoring and correcting the actions of the organisation and its people to keep them headed towards their goals. A manager at JB Hi-Fi has to control costs, inventory and so on. Again, behavioural processes and characteristics are a key part of this function. Performance evaluation and reward systems, for example, both apply to control. Control is of vital importance to all businesses, but it may be especially critical to smaller ones. Target, for example, can withstand with relative ease a loss of several thousand dollars due to poor control, but an equivalent loss may be devastating to a small firm. Figure 1.7 Technical skills are the skills needed to perform specific tasks. This retail manager is teaching a new sales clerk how to operate the store’s payment system. He has to have the technical skills needed for this task in order to teach others. Critical management skills and organisational behaviour Another important element of managerial work is mastery of the skills necessary to carry out basic functions and fill fundamental roles. In general, most successful managers have a strong combination of technical, interpersonal, conceptual and diagnostic skills.27 Source: Getty Images/Echo controlling The process of monitoring and correcting the actions of the organisation and its members to keep them directed towards their goals technical skills The skills necessary to accomplish specific tasks within the organisation Technical skills Technical skills are skills necessary to accomplish specific tasks within the organisation. Designing a new PlayStation game for Epic Games, the company that created Fortnite; developing a new anti-viral medication for CSL; or writing a press release for BHP about the firm’s new drilling technologies, all require technical skills. Hence, these skills are generally associated with the operations employed by the organisation in its production processes. For example, managers with strong technical skills include Geoff Wenborn (Chief Digital and Technology Officer at People’s Choice Credit Union) and Andrew Walduck (EGM Digital and Technology at Latitude Financial Services). Interpersonal skills interpersonal skills The ability to effectively communicate with, understand and motivate individuals and groups Managers use interpersonal skills to communicate with, understand and motivate individuals and groups. As we have noted, managers spend a large portion of their time interacting with others, so it is clearly important that they get along well with other people, such as cross-culturally. For instance, Mark Nielsen is the CEO of Talent Australia. Nielsen is able to relate to employees by demonstrating respect and dignity. He is dedicated to diversity and equality. Nielsen has been noted to exhibit an excellent ability to foster relationships, solve problems, communicate effectively and adapt to change. He seems to have a balanced ability to understand the financial and operational fundamentals while simultaneously attending to the crucial matters of organisational culture and interpersonal relationships.28 Conceptual skills conceptual skills The ability to think in the abstract Conceptual skills are the manager’s ability to think in the abstract. A manager with strong conceptual skills is able to see the ‘big picture’. That is, she or he can see opportunity where others see roadblocks or problems. For example, after Steve Wozniak and Steve Jobs built a small computer of their own design in a garage, Wozniak essentially saw a new toy that could be tinkered with. Jobs, however, saw far more and Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 16 12/08/23 11:44 AM Get Complete eBook Download By email at student.support@hotmail.com CHAPTER 1: An overview of organisational behaviour 17 convinced his partner that they should start a company to make and sell the computers. The result? Apple Computer. In subsequent years, Jobs also used his conceptual skills to identify the potential in digital media technologies, leading to the introduction of such products as the iPod, the iPhone, iTunes and the iPad, as well as his overseeing the creation of Pixar Animation Studios. When he died in 2011, Jobs was hailed as one of the most innovative managers of all time. Diagnostic skills Most successful managers also bring diagnostic skills to the organisation. Diagnostic skills allow managers to better understand cause-and-effect relationships and to recognise the optimal solutions to problems. For instance, 2018 was a turnaround year for Wesfarmers operations Kmart and Target, headed up by Department Stores Division Leader Guy Russo, who announced Figure 1.8 Elizabeth Gaines, CEO of Fortescue his retirement at the same time. Russo had spent 10 years staving off various Metals Group, has had career stints in travel, profit declines and competitive challenges in Kmart and Target. Prior to that, entertainment, pastoral and banking organisations in Australia and the United Kingdom, often in finance he had been the head of McDonald’s Australia. To make a difference at Target director and executive positions. Her education is in and Kmart required careful diagnostic skill and preparedness to implement finance. She subsequently moved into CFO positions solutions based on detailed knowledge of situational variations. Early in and is now CEO of this major resources corporation. his role, Russo diagnosed issues such as too wide a product range across too Source: Getty Images/Brendon Thorne many price points, customers spending too much time sorting between too many product choices, and too many specialised sales days. He set about trimming the product range, diagnostic skills The ability to understand simplifying price points and locking in a simple philosophy targeted at his mainstream market of people cause-and-effect wanting no-nonsense, quality goods at affordable prices. He systematically implemented policies and relationships and to recognise the optimal procedures that allowed the business to offer the lowest possible price every day as well as the quality solutions to problems 29 that customers expected. Wesfarmers CEO Rob Scott praised Russo upon his retirement for having turned around the Kmart and Target operations. He said Russo ‘. . . has led a world-class turnaround of Kmart into one of Australia’s best product development and retail companies . . . Under Guy’s leadership, Kmart’s earnings have increased more than five-fold and, more recently, he has led a significant reset of Target, reducing its cost base and returning it to profitability’.30 Organisational behaviour and human resource management We noted earlier that OB is generally related to all areas of an organisation. It is especially relevant, though, to human resource management. Human resource management (HRM) is the set of organisational activities directed at attracting, developing and maintaining an effective workforce. More precisely, HR managers select new employees, develop rewards and incentives to motivate and retain employees, and create programs for training and developing employees. But how do they know which applicants to hire? And how do they know which rewards will be more motivating than others? The answers to these and related questions are generally drawn from the field of OB. For example, personality traits (covered in Chapter 3) are frequently used in selection decisions. Likewise, motivation theories (discussed in Chapter 5) help managers understand how to most effectively reward and retain employees. This chapter’s OB skills feature highlights some common job interview questions that you should be prepared to answer before interviewing for your next job. These questions and your answers to them all involve OB concepts. human resource management (HRM) The set of organisational activities directed at attracting, developing and maintaining an effective workforce Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 17 12/08/23 11:44 AM 18 GetTO Complete eBook Download By email at student.support@hotmail.com PART 1: INTRODUCTION ORGANISATIONAL BEHAVIOUR OB Skills OB-related job interview questions 1. 2. 3. 4. 5. 6. 7. 8. What do you think is the most important thing that a manager does? What was the most ethical decision you’ve had to make at work? Tell me about a conflict you’ve experienced at work and how you handled it. Tell me about a challenging cultural team experience you have had and how you handled it.31 How would you manage an employee who misses performance goals? How would you describe your leadership style? How do you deal with stressful deadlines at work? Have you ever dealt with a difficult boss? If so, how did you manage the situation? If not, what would you do if you found yourself in this situation? 9. What types of innovative problem-solving or decision-making techniques do you use at work? 10. What type of organisational culture would be the best fit for you? Why? The questions are designed to draw from theories and research from OB. The answers help to determine the best pathways for implementation of decisions and actions in the organisation through human resource management. 1.3 THE STRATEGIC CONTEXT OF ORGANISATIONAL BEHAVIOUR competitive advantage Anything that gives a firm an edge over rivals in attracting customers and defending itself against competition Successful business strategies are grounded in creating and maintaining a sustainable competitive advantage, which exists any time an organisation has an edge over rivals in attracting customers and defending itself against competition. The effective management of people is key to the creation of a competitive advantage and business strategy execution.32 As former General Electric CEO Jack Welch said, ‘We now know where productivity – real and limitless productivity – comes from. It comes from challenged, empowered, excited, rewarded teams of people’.33 In the Australian context, the iconic journalist, and now Chair of the Australian Broadcasting Corporation, Ita Buttrose once said, ‘The only limitations are the ones we put on ourselves’.34 These sentiments are at the core of philosophies of success and hint strongly at the human will at the centre of that quest. While Buttrose stands against racial discrimination of First Nations Australians, as evident in her support of Adam Goodes,35 racially motivated limitations were, and are, imposed on First Nations Australians and Māori peoples of Aotearoa/New Zealand. In these countries, culturally-safe and culturally competent management is a core philosophy of businesses.36 We now turn our attention more specifically to the nature of management and its relationship to OB. Sources of competitive advantage How does an organisation gain a competitive advantage? Research has identified many sources of competitive advantage, including having the best-made or cheapest product, providing the best customer service, being more convenient to buy from, having shorter product development times and having a wellknown brand name.37 Because it is an organisation’s people who are responsible for gaining and keeping any competitive advantage, effective management is critical to business success.38 Warehouse retailer Costco’s strong and loyal customer base, access to a broad range of high-quality products for a low price, and committed employees give it a competitive advantage over smaller and lesserknown retailers. Although Costco pays its employees relatively generously, it has similar financial returns on its labour costs due to lower turnover and higher levels of employee productivity.39 This, in turn, results in a higher-quality customer experience. Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 18 12/08/23 11:44 AM Get Complete eBook Download By email at student.support@hotmail.com CHAPTER 1: An overview of organisational behaviour 19 According to the highly cited business strategist Michael Porter, to have a competitive advantage a company must ultimately be able to give customers superior value for their money (a combination of quality, service and acceptable price) – either a better product that is worth a premium price or a good product at a lower price can be a source of competitive advantage.40 Figure 1.9 lists some possible sources of competitive advantage. You should note that an organisation’s talent is the key to securing each of these. One of the most important things managers do is execute a firm’s business strategy. We next discuss business strategy in more detail, as well as how OB can reinforce the organisation’s overall business strategy and support its execution. Source of competitive advantage Examples Innovation Developing new products, services and markets, and improving current ones Distribution Dominating distribution channels to block competition Speed Excelling at getting your product or service to consumers quickly Convenience Being the easiest for customers to do business with First to market Introducing products and services before competitors Cost Being the lowest-cost provider Service Providing the best customer support before, during or after the sale Quality Providing the highest-quality product or service Branding Developing the most positive image Figure 1.9 Businesses can choose to pursue competitive advantage by using an array of different sources. Types of business strategies A company may create value based on price, technological leadership, customer service, or some combination of these and other factors. Business strategy involves the issue of how to compete, but also encompasses: • the strategies of different functional areas in the firm, including human resources • how changing industry conditions such as deregulation, product market maturity and changing customer demographics will be addressed • how the firm as a whole will address the range of strategic issues and choices it faces, which includes change management, cultural change and organisational development. Business strategies are partially planned, and partially reactive to changing circumstances. A large number of possible strategies exist for any organisation, and an organisation may pursue different strategies in different business units. Companies may also pursue more than one strategy at a particular Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 19 12/08/23 11:44 AM 20 GetTO Complete eBook Download By email at student.support@hotmail.com PART 1: INTRODUCTION ORGANISATIONAL BEHAVIOUR time. According to Michael Porter, businesses can compete successfully by being the cheapest producer, by making unique products valued by consumers, or by applying their expertise in a narrow market segment to meet that segment’s particular product or service needs.41 These three primary business strategies are: 1 cost leadership 2 differentiation 3 specialisation. Another strategic choice is whether to grow the business, and if so how to do it. We next discuss each of these strategies and their implications for OB. Cost leadership strategy cost leadership strategy Striving to be the lowest-cost producer for a particular level of product quality Firms pursuing a cost leadership strategy strive to be the lowest-cost producer in an industry for a particular level of product quality. These businesses are typically good at designing products that can be efficiently manufactured (e.g. designing products with a minimum number of parts needing assembly) and engineering efficient manufacturing processes to keep production costs and customer prices low. Walmart is a good example of a firm that uses a cost leadership strategy. Organisations pursuing a strategy of keeping costs and prices low try to develop a competitive advantage in operational excellence.42 Employees in these firms need to identify and follow efficient processes and engage in continuous improvement. Manufacturing and transportation companies frequently adopt this approach. These organisations continually look for ways to modify their operational systems in order to reduce costs and lower prices while offering a desirable product that competes successfully with competitors’ products. Dell Computers, Bunnings and Big W are good examples of companies whose competitive advantage is based on operational excellence. Most operationally excellent firms require managers to hire and train flexible employees who are able to focus on shorter-term production objectives, who avoid waste, and who are concerned about minimising production costs.43 Operationally excellent organisations function with tight margins and rely more on teamwork than individual performance. Ethical Dilemma Wellness is all well and good Attracting the best talent to your organisation is a matter of balancing the available flexible benefits in addition to ensuring salaries are commensurate. The attractiveness of flexible benefits is often linked to the benefits of work–life balance, and the overall sense of wellbeing that can be derived from work conditions that are designed to give staff the chance to alleviate stresses. This became especially evident because of the COVID-19 pandemic. Before the pandemic, all manner of creative benefits had been promoted by large employers like Google (nap pods, sporting equipment, free food); Netflix and LinkedIn (unlimited annual leave); Deloitte (cooking classes); and Macquarie (yoga) to try to attract the brightest and best young professionals to their ranks. Even some small businesses were offering incentives like: • unlimited paid sick leave • free boxing lessons • personal development courses • birthday leave • Lego building rooms • choosing your own hours • secondment experiences to interstate and international office locations • sponsored further education including MBAs. >> Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 20 12/08/23 11:44 AM Get Complete eBook Download By email at student.support@hotmail.com CHAPTER 1: An overview of organisational behaviour >> 21 The LinkedIn 2022 Global Talent Trends report identified newer workplace trends emerging from the global pandemic. Such trends include more rapid automation, millennials and Generation Z taking over the workforce, the increased turnover of staff known as the great resignation or reshuffle, and the greater flexibility to work where and when you want. In light of these trends, companies are now using some of the above and developing other benefits for attracting and retaining staff, such as leave flexibility, wellbeing initiatives and gender parity programs.44 With job shopping on the rise and more workers prepared to move on if flexibility and incentives are insufficient, some researchers warn that flexible benefits have to be genuine value-adds rather than ways to gloss over or obscure serious over-work and workload imbalance problems at some organisations. The nature of work is sometimes so complex that it needs to be better studied and broken down so that job assignments are more manageable, better delegated and less stressful for the people doing them. Just offering a mental health day or a yoga class to try to counteract inherently stressful work might be just a band-aid solution. The total design of work in balance with the rewards and benefits the organisation can afford to provide is the real issue to articulate here. Question Consider whether your organisation is glossing over an inherently stressful workload. Are tension and stress actually drivers of performance in the workplace, such that initiatives to minimise them might diminish productivity and increase staff turnover? Differentiation strategy A differentiation strategy calls for the development of a product or service with unique characteristics valued by customers. The value added by the product’s uniqueness may enable the business to charge a premium price for it. The dimensions along which a company can differentiate include image (the bottled ‘happiness’ of Coca-Cola), product durability (Hard Yakka or KingGee clothing), quality (Rolex watches), safety (Volvo) and usability (Apple). Some companies, such as Jetstar, differentiate themselves from their competitors by pursuing a strategy based on only providing no-frills, basic products and services at a low cost. Companies can pursue more than one strategy at a time. In this case, Jetstar is both a cost leader and a differentiator. differentiation strategy Developing a product or service that has unique characteristics valued by customers product innovation Developing new products or services Product innovation Organisations pursuing a differentiation strategy often try to develop a competitive advantage based on product innovation. This requires employees to continually develop new products and services to create an advantage in the market. These companies create and maintain a culture that encourages employees to bring new ideas into the company. These companies then listen to and consider these ideas, however unconventional they might be. For these companies, the frequent introduction of new products is the key to staying competitive. This strategy is common in technology and pharmaceutical companies. Pfizer, Nike and 3M are good examples of organisations whose competitive advantage is based on product innovation. Product innovators must protect their entrepreneurial environment. To that end, managers develop and reinforce an innovative culture. Instead of selecting job candidates based only on their related experience, they also assess whether a candidate can work cooperatively in teams and whether the candidate is open-minded and creative.45 An Figure 1.10 Blundstone uses a differentiation strategy. It promotes its work boots as being more tough and durable than those sold by competitors. This differentiation, in turn, allows Blundstone to sell its work boots for higher prices than many similar products. Source: Shutterstock.com/Christopher Gardiner Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 21 12/08/23 11:44 AM 22 GetTO Complete eBook Download By email at student.support@hotmail.com PART 1: INTRODUCTION ORGANISATIONAL BEHAVIOUR organisation with a product innovation competitive advantage would likely seek a core workforce of research and development employees who have an entrepreneurial mindset, long-term focus, high tolerance for ambiguity, and an interest in learning and discovery. Employees who need stability and predictability would not fit as well. Managers in innovative companies also need to motivate and empower employees.46 Specialisation strategy specialisation strategy Focusing on a narrow market segment or niche and pursuing either a differentiation or cost leadership strategy within that market segment Businesses pursuing a specialisation strategy focus on a narrow market segment or niche – a single product, a particular end use, or buyers with special needs – and pursue either a differentiation or cost leadership strategy within that market segment. Successful businesses following a specialist strategy know their market segment very well, and often enjoy a high degree of customer loyalty. This strategy can be successful if it results in either lower costs than competitors serving the same niche or an ability to offer customers something other competitors do not (e.g. manufacturing non-standard parts). Nando’s, Krispy Kreme Doughnuts and H&R Block are examples of companies that use a specialisation strategy. Customer intimacy customer intimacy Delivering unique and customisable products or services to meet customers’ needs and increase customer loyalty Organisations pursuing a specialisation strategy often try to develop a competitive advantage based on customer intimacy and deliver unique and customisable products or services to meet their customers’ needs and increase customer loyalty. This approach involves dividing markets into segments or niches and then tailoring the company’s offerings to meet the demands of those niches. Creating customer loyalty requires employees to combine detailed knowledge about their customers with operational flexibility so they can respond quickly to almost any customer need, from customising a product to fulfilling special requests. Consulting, retail and banking organisations often adopt this approach. Most service-quality experts say that talent is the most critical element in building a customeroriented company.47 Hiring active learners with good customer relations skills and emotional resilience under pressure would complement a customer intimacy competitive advantage, and help ensure that the organisation continually enhances its ability to deliver on promises to customers.48 Because employee cooperation and collaboration are important to developing customer intimacy, managers should also focus on building effective teams and creating effective communication channels. Companies such as H&R Block are able to win the Quality Service Award Australia 2022 because of their focus on customer relationships.49 Imagine if H&R Block began to hire cheaper labour, including people with weak communication skills, and cut back on its investments in innovation, employee training and satisfaction. H&R Block’s competitive advantage would quickly erode, and the company would have to reduce prices and change its promotions campaign to keep customers coming back. This could eventually result in H&R Block pursuing a cost leadership strategy rather than a specialisation strategy because it had failed to attract, motivate and retain the right types of employees. Growth strategy growth strategy Company expansion organically or through acquisitions Another strategic choice is whether to expand the company and seek to increase business. Companies often pursue a growth strategy in response to investor preferences for rising earnings per share, and the required business expansion generally requires the acquisition of additional talent. For example, growth-oriented firms such as Canva regularly open new offices and form network connections that require additional management, employees and even supply chain staff. The success of a growth strategy depends on the firm’s ability to find and retain the right number and types of employees to sustain its intended growth. Growth can be organic, happening as the organisation expands from within by opening new factories or stores. This requires an investment in recruiting, selecting Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 22 12/08/23 11:44 AM Get Complete eBook Download By email at student.support@hotmail.com CHAPTER 1: An overview of organisational behaviour 23 and training the right people to expand the company’s operations. Firms can also pursue growth strategies through mergers and acquisitions. Mergers and acquisitions have been a common way for organisations to achieve growth, expand internationally and respond to industry deregulation. In addition to expanding the organisation’s business, mergers and acquisitions can also be a way for an organisation to acquire the quality and amount of talent it needs to execute its business strategy. When using mergers and acquisitions to implement a growth strategy, it is important to consider the match between the two organisations’ cultures, values and organisational structures. Mismatches between merged or acquired organisations can result in underperformance and the loss of talented employees. Mergers and acquisitions often fail because of culture issues rather than technical or financial issues.50 The failed proposed merger between the University of Adelaide and University of South Australia,51 and another between NGS Super and Australian Catholic Superannuation,52 are among some prominent examples. Connecting business strategy to organisational behaviour There are a number of significant linkages that connect business strategy and OB. For instance, a firm that relies on a cost leadership strategy will usually need to keep all of its expenses as low as possible. Therefore, this strategy might dictate relying on low-wage employees and trying to automate as many jobs as possible. These actions, in turn, clearly relate to employee motivation and the design of work. Likewise, a company using a differentiation strategy might want to emphasise exemplary customer service. As a result, it needs employees who are motivated to provide high levels of service, leaders who can help develop a customer service culture, and a reward structure tied to customer service. A specialisation strategy often requires employees with specialised skills and abilities. Strategy implementation and strategic change also require large-scale organisational changes; two of the largest may be the new organisational culture and new behaviours required of employees. Depending on the nature of a strategic change, some employees are likely to lack the willingness or even the ability to support the new strategy. Targeting management efforts to coach, motivate and influence the people who are critical to implementing a new strategy may help it to take hold and ultimately influence the strategy’s effectiveness. Imagine an organisation currently manufacturing fashionwear. The competitive environment is such that the organisation must compete on cost. The organisation is focused on operational efficiencies to control expenses. Its focus is on keeping costs contained, and the culture reinforces strict adherence to operating rules to help achieve these goals. Now consider what would change if the organisation were to identify a better competitive position by specialising in designing new and innovative fashion items and outsourcing their production. The organisation’s focus would now be on innovation, problem solving and teamwork. Managers would need to do less rule enforcement and more leading, motivating and communicating. Employee involvement in decision making might also increase. The Australian fashion label, Ilio Nema, decided to focus on offshore production specially to tap into artisanal handwork, handwoven textiles, and traditional techniques uniquely situated in India and Morocco. The company supports community and rural development and employment in those offshore locations while tapping into cost effective production circles proximal to farmer producers and creating a line of fashion very attractive to key markets in Australia and elsewhere.53 The previous discussion should help you to understand the role of OB in executing a variety of business strategies. Effective managers understand what needs to be done to execute a company’s business strategy, then they plan, organise, direct and control the activities of employees to get it done. It is important to note that managers do not accomplish organisational objectives by themselves – they get work done through others.54 Flexibly applying OB principles will help you to do that most effectively. Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 23 12/08/23 11:44 AM 24 GetTO Complete eBook Download By email at student.support@hotmail.com PART 1: INTRODUCTION ORGANISATIONAL BEHAVIOUR 1.4 CONTEXTUAL PERSPECTIVES ON ORGANISATIONAL BEHAVIOUR Several contextual perspectives – most notably the systems and contingency perspectives and the interactional view – also influence our understanding of organisational behaviour. Many of the concepts and theories discussed in the chapters that follow reflect these perspectives; they represent basic points of view that influence much of our contemporary thinking about behaviour in organisations. In addition, they allow us to see more clearly how managers use behavioural processes as they strive for organisational effectiveness. Before examining these perspectives, though, let’s first take a detour to explain how the field of OB has developed. scientific management Based on the belief that productivity is maximised when organisations are rationalised with precise sets of instructions based on time-and-motion studies Where does organisational behaviour come from? OB could date back to prehistoric times, when people first started trying to understand, motivate and lead others. The Greek philosopher Plato contemplated the essence of leadership, and Aristotle discussed persuasive communication. The foundation of organisational power and politics can be found in the more than 2300-year-old writings of Sun-Tzu and those of 16th-century Italian philosopher Niccolò Machiavelli. Charismatic leadership was later discussed by German sociologist Max Weber. OB topics have clearly been of interest to many people for a long time. Let’s briefly review some history to better understand the origins of the scientific study of OB. Formal study of OB began in the 1890s, following the industrial relations movement spawned by Adam Smith’s introduction of the division of labour. In the 1890s, Frank and Lillian Gilbreth and Frederick Winslow Taylor identified the positive effects of precise instructions, goal setting and rewards on motivation. Their ideas became known as scientific management, and are often considered the beginning of the formal study of OB (see Figure 1.11). Scientific management Figure 1.11 Frederick Winslow Taylor was one of the pioneers of scientific management. He advocated that managers should study the jobs of workers, break those jobs down into small tasks, train workers in the ‘one best way’ of doing their jobs, and then pay workers based on the number of units they produced. Source: Alamy Stock Photo/The History Collection Scientific management is based on the belief that productivity is maximised when organisations are rationalised with precise sets of instructions based on time-andmotion studies. The four principles of Taylor’s scientific management are:55 1Replace rule-of-thumb work methods with methods based on scientifically studying the tasks using time-and-motion studies. 2Scientifically select, train and develop all workers rather than leaving them to passively train themselves. 3Managers provide detailed instructions and supervision to workers to ensure that they are following the scientifically developed methods. 4Divide work nearly equally between workers and managers. Managers should apply scientific management principles to planning the work, and workers should actually perform the tasks. Although scientific management improved productivity, it also increased the monotony of work. Scientific management left no room for individual preferences or initiative, and was not always accepted by workers. At one point, complaints Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 24 12/08/23 11:44 AM Get Complete eBook Download By email at student.support@hotmail.com CHAPTER 1: An overview of organisational behaviour 25 that it was dehumanising led to a congressional investigation.56 After World War I, attention shifted to understanding the role of human factors and psychology in organisations. This interest was spawned by the discovery of the Hawthorne effect in the 1920s and 1930s. The Hawthorne effect The Hawthorne effect occurs when people improve some aspect of their behaviour or performance simply because they know they are being assessed. This effect was first identified when a series of experiments that came to be known as the Hawthorne studies were conducted on Western Electric plant workers in Hawthorne, just outside of Chicago, to see the effects of a variety of factors, including individual versus group pay, incentive pay, breaks and snacks, on productivity. One of the working conditions tested at the Hawthorne plant was lighting. When they tested brighter lights, production increased. When they tested dimmer lights, production also increased! Researchers observed that productivity almost always improved after a lighting change – any change – but eventually returned to normal levels. Workers appeared to try harder when the lights were dimmed just because they knew they were being evaluated. Expatriate Australian George Elton Mayo, founder of the human relations movement initiated by the Hawthorne studies, explained this finding by saying that the workers tried harder because of the sympathy and interest of the observers. Mayo stated that the reason workers are more strongly motivated by informal things is that individuals have a deep psychological need to believe that their organisation cares about them.57 Essentially, workers are more motivated when they believe their organisation is open, concerned and willing to listen. The Hawthorne studies prompted further investigation into the effects of social relations, motivation, communication and employee satisfaction on factory productivity. Rather than viewing workers as interchangeable parts in mechanical organisations as the scientific management movement had done, the human relations movement viewed organisations as cooperative systems and treated workers’ orientations, values and feelings as important parts of organisational dynamics and performance. The human relations movement stressed that the human dimensions of work, including group relations, can supersede organisational norms and even an individual’s self-interests. Unsophisticated research methods did render some of the conclusions of human relations researchers incorrect.58 For example, the relationship between employee satisfaction and performance is more complex than researchers initially thought. Nonetheless, the movement ushered in a new era of more humane, employee-centred management by recognising employees’ social needs, and highlighted the importance of people to organisational success.59 Harvard social work professor and management consultant Mary Parker Follett was known as a ‘prophet of management’ because her ideas were ahead of her time. Follett discovered a variety of phenomena, including creativity exercises such as brainstorming, the ‘groupthink’ effect in meetings (in which faulty decisions are made because group members try to minimise conflict and reach consensus by neglecting to critically analyse and test ideas), and what later became known as ‘management by objectives’ and ‘total quality management’. Follett also advocated for power-sharing arrangements in organisations. In the 1950s, Japanese managers discovered her writings. They credit her ideas, along with those of W. Edwards Deming, in revitalising their industrial base. W. Edwards Deming is known as the ‘guru of quality management’. In postwar Japan, Deming taught Japanese industrialists statistical process control and quality concepts. His classic 1986 book describes how to do high-quality, productive and satisfying work.60 Deming’s plan-do-check-act cycle of continuous improvement promoted the adoption of 14 principles to make any organisation efficient and capable of solving almost any problem. Deming believed that removing fear from the workplace gives employees pride in their workmanship, which increases production. Deming also felt that when things go wrong, there is Hawthorne effect When people improve some aspect of their behaviour or performance simply because they are being assessed human relations movement Views organisations as cooperative systems and treats workers’ orientations, values and feelings as important parts of organisational dynamics and performance Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 25 12/08/23 11:44 AM 26 GetTO Complete eBook Download By email at student.support@hotmail.com PART 1: INTRODUCTION ORGANISATIONAL BEHAVIOUR a 94 per cent chance that the system (elements under managerial control including machinery and rules) rather than the worker is the cause.61 He believed that making changes in response to normal variations was unwise, and that a proper understanding of variation includes the mathematical certainty that variation will normally occur within a certain range. The total quality management movement initiated by Deming again highlights the importance of people, teamwork and communication in an organisation’s success. You will read much more about the evolution of OB throughout this book, but this brief history helps to set the stage for how we got this far. We now turn our attention to other important contextual perspectives that help us understand both organisations and the behaviours of individuals that comprise them. Organisations as open systems system A set of interrelated elements functioning as a whole The systems perspective, or the theory of systems, was first developed in the physical sciences, but it has been extended to other areas, such as management.62 A system is an interrelated set of elements that function as a whole. Figure 1.12 shows a general framework for viewing organisations as systems. Feedback Inputs Material inputs Human inputs Financial inputs Information inputs Transformation Technology (including manufacturing, operations and service processes) Outputs Products/services Profits/losses Employee behaviours New information Environment Figure 1.12 The systems approach to organisations The systems approach to organisations provides a useful framework for understanding how the elements of an organisation interact among themselves and with their environment. Various inputs are transformed into different outputs, with important feedback from the environment. If managers do not understand these interrelations, they may tend to ignore their environment or overlook important interrelationships within their organisations. According to this perspective, an organisational system receives four kinds of inputs from its environment: material, human, financial and informational (note that this is consistent with our earlier description of management functions). The organisation’s managers then combine and transform these inputs and return them to the environment in the form of products or services, employee behaviours, profits or losses, and additional information. Then the system receives feedback from the environment regarding these outputs. As an example, we can apply systems theory to the Shell oil company. Material inputs include pipelines, crude oil and the machinery used to refine petroleum. Human inputs are oil field workers, refinery workers, office staff and other people employed by the company. Financial inputs take the form of money received from oil and gas sales, stockholder investment and so forth. Finally, the company receives information inputs from forecasts about future oil supplies, geological surveys on potential drilling sites, sales projections and similar analyses. Through complex refining and other processes, these inputs are combined and transformed to create products such as petrol and motor oil. As outputs, these products are sold to the consuming public. Profits from operations are fed back into the environment through taxes, investments and dividends; losses, when they occur, hit the environment by reducing stockholders’ incomes. In addition to having on-the-job contacts with customers and suppliers, employees live in the community and participate in a variety of Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 26 12/08/23 11:44 AM Get Complete eBook Download By email at student.support@hotmail.com CHAPTER 1: An overview of organisational behaviour 27 activities away from the workplace, and their behaviour is influenced in part by their experiences as Shell workers. Finally, information about the company and its operations is also released into the environment. The environment, in turn, responds to these outputs and influences future inputs. For example, consumers may buy more or less petrol depending on the quality and price of Shell’s product, and banks may be more or less willing to lend Shell money based on financial information released about the company. The systems perspective is valuable to managers for two main reasons.63 First, it underscores the importance of an organisation’s environment. For instance, failing to acquire the appropriate resources and failing to heed feedback from the environment can be disastrous. Second, the systems perspective also helps managers conceptualise the flow and interaction of various elements of the organisation itself as they work together to transform inputs into outputs. Situational perspectives on organisational behaviour Another useful viewpoint for understanding behaviour in organisations comes from the situational perspective. In the earlier days of management studies, managers searched for universal answers to organisational questions. They sought prescriptions, the ‘one best way’ that could be used in any organisation under any conditions, searching, for example, for forms of leadership behaviour that would always lead employees to be more satisfied and to work harder. Eventually, however, researchers realised that the complexities of human behaviour and organisational settings make universal conclusions virtually impossible. They discovered that in organisations, most situations and outcomes are contingent; that is, the precise relationship between any two variables is likely to be situational (i.e. dependent on other variables).64 Figure 1.13 distinguishes the universal and situational perspectives. The universal model, shown at the top of the figure, presumes a direct cause-and-effect linkage between variables. For example, it suggests that whenever a manager encounters a particular problem or situation (such as motivating employees to work harder), a universal approach exists (such as raising pay or increasing autonomy) that will lead to the desired outcome. The situational perspective, on the other hand, acknowledges that several other variables alter the direct relationship. In other words, the appropriate managerial action or behaviour in any given situation depends on elements of that situation. The field of organisational behaviour has gradually shifted from a universal approach in the 1950s and early 1960s to a situational perspective. The situational perspective has been widely documented in the areas of motivation, job design, leadership and organisational design, and it is becoming increasingly important throughout the entire field. situational perspective Suggests that in most organisations, situations and outcomes are influenced by other variables Universal approach Organisational problems or situations determine ... the one best way of responding. Situational approach Organisational problems or situations must be evaluated in terms of ... elements of the situation, which then suggest ... contingent or situational ways of responding. Figure 1.13 Universal versus situational approach Managers once believed that they could identify the ‘one best way’ of solving problems or reacting to situations. Here we illustrate a more realistic view, the situational approach. The situational approach suggests that approaches to problems and situations are contingent on elements of the situation. Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 27 12/08/23 11:44 AM 28 GetTO Complete eBook Download By email at student.support@hotmail.com PART 1: INTRODUCTION ORGANISATIONAL BEHAVIOUR Interactionism: people and situations interactionism Suggests that individuals and situations interact continuously to determine individuals’ behaviour Interactionism is another useful perspective to help better understand behaviour in organisational settings. First presented in terms of interactional psychology, this view assumes that individual behaviour results from a continuous and multidirectional interaction between characteristics of the person and characteristics of the situation. More specifically, interactionism attempts to explain how people select, interpret and change various situations.65 Note that the individual and the situation are presumed to interact continuously. This interaction is what determines the individual’s behaviour. The interactional view implies that simple cause-and-effect descriptions of organisational phenomena are not enough. For example, one set of research studies may suggest that job changes lead to improved employee attitudes. Other studies may propose that attitudes influence how people perceive their jobs in the first place. Both positions probably are incomplete: employee attitudes may influence job perceptions, but these perceptions may in turn influence future attitudes. Because interactionism is a fairly recent contribution to the field, it is less prominent in the chapters that follow than the systems and contingency theories. Nonetheless, the interactional view appears to offer many promising ideas for future development. 1.5 MANAGING FOR EFFECTIVENESS Earlier in this chapter, we noted that managers work towards various goals. We are now in a position to elaborate on the nature of these goals in detail. Essentially, managers and leaders generally try to direct the behaviours of people in their organisations in ways that promote organisational effectiveness. They can do this by enhancing behaviours and attitudes, promoting citizenship, minimising dysfunctional behaviours and driving strategic execution. Of course, it may sometimes be necessary to make trade-offs among these different kinds of outcomes, but in general each is seen as a critical component of organisational effectiveness. The sections that follow elaborate on these and other points in more detail. Enhancing individual and team performance behaviours Several individual behaviours result from a person’s participation in an organisation. One important behaviour is productivity. A person’s productivity is a relatively narrow indicator of their efficiency and is measured in terms of the products or services created per unit of input. For example, if Bill makes 100 units of a product in a day and Sara makes only 90 units in a day, then, assuming that the units are of the same quality and that Bill and Sara earn the same wages, Bill is more productive than Sara. Performance, another important individual-level outcome variable, is a somewhat broader concept and is made up of all work-related behaviours. For example, even though Bill is highly productive, it may also be that he refuses to work overtime, expresses negative opinions about the organisation at every opportunity, will do nothing unless it falls precisely within the boundaries of his job, calls in sick frequently, and is often late. Sara, on the other hand, may always be willing to work overtime, is a positive representative of the organisation, goes out of her way to make as many contributions to the organisation as possible, and seldom misses work. Based on the full array of behaviours, then, we might conclude that Sara actually is the better performer. Another set of outcomes exists at the group and team level. Some of these outcomes parallel the individual-level outcomes just discussed. For example, if an organisation makes extensive use of work teams, team productivity and performance are important outcome variables. On the other hand, even if all the people in a group or team have the same or similar attitudes towards their jobs, the attitudes themselves are individual-level phenomena. Individuals, not groups, have attitudes. But groups or teams can also have unique outcomes that individuals do not share. For example, as we will discuss in Chapter 6, groups develop Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 28 12/08/23 11:44 AM Get Complete eBook Download By email at student.support@hotmail.com CHAPTER 1: An overview of organisational behaviour 29 cultural norms that govern the behaviour of individual group members. Groups also develop different levels of cohesiveness. Thus, managers need to assess both common and unique outcomes when considering the individual and group levels. Enhancing employee commitment and engagement Another set of individual-level outcomes influenced by managers consists of individual attitudes. Levels of job satisfaction or dissatisfaction, organisational commitment and employee engagement all play an important role in organisational behaviour. Extensive research conducted on job satisfaction has indicated that personal factors, such as an individual’s needs and aspirations, determine this attitude, along with group and organisational factors, such as relationships with co-workers and supervisors, as well as working conditions, work policies and workers’ compensation.66 A satisfied employee also tends to be absent less often, make positive contributions and stay with the organisation. In contrast, a dissatisfied employee may be absent more often, may experience and express stress that disrupts co-workers, and may be continually looking for another job.67 Contrary to what many managers believe, however, high levels of job satisfaction do not necessarily lead to higher levels of performance. A person with a high level of commitment is likely to see herself as a true member of the organisation (e.g. referring to the organisation in personal terms like, ‘We make high-quality products’), to overlook minor sources of dissatisfaction with the organisation, and to see herself remaining a member of the organisation. In contrast, a person with less organisational commitment is more likely to see himself as an outsider (e.g. referring to the organisation in less personal terms like, ‘They don’t pay their employees very well’), to express more dissatisfaction about things, and to not see himself as a long-term member of the organisation. Promoting organisational citizenship behaviours Organisational citizenship is the behaviour of individuals that makes a positive overall contribution to the organisation.68 Consider, for example, an employee who does work that is acceptable in terms of both quantity and quality, but does not go much beyond the job description, will not help newcomers learn the ropes, and does not engage much in internal service and cultural roles, such as equity, diversity and inclusiveness; reconciliation, or Treaty of Waitangi activities; LGQTIA+ committees, and so on. Although this person may be evaluated on job criteria as a good performer, their organisational citizenship may be considered low. Another employee may exhibit a comparable level of job performance, but show a higher level of social helpfulness and commitment to the organisation’s success, be more engaged with the informal social dynamic and more community-minded, and thus be seen as a better organisational citizen. The determinant of organisational citizenship behaviours is likely to be a complex mosaic of individual, social and organisational variables. For example, the personality, attitudes and needs of the individual will have to be consistent with citizenship behaviours. Similarly, the social context in which the individual works, or work group, will need to facilitate and promote such behaviours. And the organisation itself, especially its internal culture, must be capable of promoting, recognising and rewarding these types of behaviours if they are to be maintained. Although the study of organisational citizenship is still unfolding, preliminary research suggests that it may play a powerful role in organisational effectiveness. Minimising dysfunctional behaviours Some work-related behaviours are dysfunctional in nature. Dysfunctional behaviours are those that detract from, rather than contribute to, organisational performance.69 Two other important individual-level organisational citizenship The behaviour of individuals that makes a positive overall contribution to the organisation dysfunctional behaviours Those that detract from, rather than contribute to, organisational performance Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 29 12/08/23 11:44 AM 30 GetTO Complete eBook Download By email at student.support@hotmail.com PART 1: INTRODUCTION ORGANISATIONAL BEHAVIOUR behaviours are absenteeism and turnover. Absenteeism is a measure of attendance. Although virtually everyone misses work occasionally, some people miss far more than others. Some look for excuses to miss work and call in sick regularly just for some time off; others miss work only when absolutely necessary. Turnover occurs when a person leaves the organisation. If the individual who leaves is a good performer or if the organisation has invested heavily in training the person, turnover can be costly. Other forms of dysfunctional behaviour may be even more costly for an organisation. Theft and sabotage, for example, result in direct financial costs for an organisation. Sexual and racial harassment also cost an organisation, both indirectly (by lowering morale, producing fear and driving off valuable employees) and directly (through financial liability if the organisation responds inappropriately). So, too, can politicised behaviour, intentionally misleading others in the organisation, spreading malicious rumours, and similar activities. Incivility and rudeness can result in conflict and damage to morale and the organisation’s culture.70 Bullying and workplace violence are also growing concerns in many organisations. Can work be too flexible? Critical Perspective The New Zealander who heads the National Australia Bank (NAB), Ross McEwan, is a big fan of sport, as well as ensuring that people spend good amounts of time working and talking together in shared spaces. On a post-pandemic-lockdown trip to the footy with NAB staff and clients in early 2022, he remarked about the human need for his people to talk with each other which was especially clear after so many months of being forced to work from home.71 At that footy match, hardly anyone watched the game because they were re-engaging with each other after such a long time in relative isolation. McEwan acknowledged the significant change to work expectations after the pandemic. Of course, NAB and other large companies may need to offer flexible work and more work-from-home options for staff in the future. However, he is sure being isolated from workspace connection and missing out on shared face-to-face work experiences could create a risk of stunting people’s networking skills and, therefore, their careers. The trick will be in finding the balance between what employees find empowers them to be most productive and what is optimal for promoting opportunities for interaction. Neither forcing people to work from home nor compelling them to only stay on the worksite are effective. One investigation by University of Melbourne researchers warns against assuming staff will appreciate having a flexible work option. Yet other research by Cambridge and Oxford universities and Boston College in a trial in 100 companies in the UK is showing that a radical change to a 4-day working week (while still being paid for 5 days) is proving to be empowering and motivating.72 Overall, implementing flexible work arrangements requires very careful consideration, with managers needing to ensure coordination across interrelated tasks. Critical hours required for full capacity operation should be identified. While empowerment and motivation of staff are the objectives of flexible working arrangements, the actual outcome has to be carefully monitored. The popular generalisation – that flexibility is great for everybody – might have some fallacious aspects.73 Reflection question How can managers empower employees with flexible working arrangements while promoting opportunities for networking and other workplace interaction? Driving strategic execution Finally, another set of outcome variables exists at the organisation level. These outcomes usually relate to strategic execution – how well managers and their employees understand and carry out the actions needed to achieve strategic goals. Some of these outcomes parallel those at the individual and group levels, but others are unique. For example, we can measure and compare organisational productivity. We can also develop organisation-level indicators of absenteeism and turnover. But profitability is generally assessed only at the organisational level. Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 30 12/08/23 11:44 AM Get Complete eBook Download By email at student.support@hotmail.com CHAPTER 1: An overview of organisational behaviour 31 Organisations are also commonly assessed in terms of financial performance: stock price, return on investment, growth rates and so on. They are also evaluated in terms of their ability to survive and the extent to which they satisfy important stakeholders such as investors, government regulators, employees and unions. Clearly, then, the manager must balance different outcomes across all three levels of analysis. In many cases, these outcomes appear to contradict one another. For example, paying workers high salaries can enhance satisfaction and reduce turnover, but it also may detract from bottom-line performance. Similarly, exerting strong pressure to increase individual performance may boost short-term profitability but increase turnover and job stress. Thus, the manager must look at the full array of outcomes and attempt to balance them in an optimal fashion. The manager’s ability to do this is a major determinant of the organisation’s success and how well it implements its business strategy. How do we know what we know? Another important part of being an effective manager is understanding the quality of the information used to make decisions. Not all information is accurate! Accordingly, it is important to understand the processes that have been used to establish our knowledge about OB, and why we know what we know.74 People sometimes believe that OB is simply a collection of common-sense ideas because the theories can seem obvious. For example, everyone ‘knows’ that having higher goals and confidence leads to better performance; more job satisfaction leads to greater productivity; greater group cohesion leads to higher group performance; and valuing rewards leads to greater motivation, right? So if it is all common sense, why do we need OB research? And why do we need to study these theories? The answer is that common sense isn’t so common. People don’t always agree. If 10 different people see the same leadership interaction, you may find 10 different ‘common-sense’ perspectives on what leadership is and how it works. Even if you don’t find 10 different perspectives, you will certainly not find perfect agreement on the same phenomenon. Take three common-sense statements: ‘Absence makes the heart grow fonder’ and ‘When the cat is away the mice will play’ and ‘We deliver services regardless of race’. Which one is correct? Why? Another answer is that common sense is not always right. Findings may seem common sense after the research is done, but beforehand we don’t really know what is going on. For example, in this book you will learn that each of the common-sense statements made earlier is either false or conditional. Goals and confidence do not always work, satisfaction does not always lead to productivity, cohesion does not always enhance group performance, and having valued rewards sometimes doesn’t motivate people. So it isn’t just about common sense. We need also science and research, because these are built on careful and systematic testing of assumptions and conclusions. The research process allows us to evolve our understanding of how things work and to learn when goals, confidence, satisfaction, cohesion and rewards affect outcomes and why it happens. That is why we need to learn about theories and not just operate on common sense. Intuition Many people feel that they have a good understanding of other people from observing them all of their lives. When you want to persuade or motivate a friend or colleague to do something, for example, you likely use various techniques that have worked for you in the past. So why should you study OB? Although we can certainly develop a good understanding of many of the norms, expectations and behaviours of others by living and working with them, there are many things that are not well understood without more systematic study. Decades of research have both reinforced some of the things many people intuitively believe and identified common misunderstandings or misperceptions about OB. For example, when are different leadership approaches most effective? What are the advantages and disadvantages of different influence approaches? What goal level will best motivate someone? How important is employee Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 31 12/08/23 11:44 AM 32 GetTO Complete eBook Download By email at student.support@hotmail.com PART 1: INTRODUCTION ORGANISATIONAL BEHAVIOUR 1 Theory 4 Verification 2 Hypotheses 3 Data D satisfaction to job performance? Is stress always bad? Some of the answers to these questions may surprise you, and will help make you a more successful manager. We encourage you to read this book with an open mind, and to not assume that you know all there is to know about a topic before you have studied it. Our goal is to help you be as effective as possible in organisations, and to help you create successful organisations. Help us help you succeed by being open to challenging and replacing popular but incorrect notions you may have about OB. The scientific method Rather than relying on experience or intuition, or just assuming that ideas are correct because they seem to make sense, the scientific method relies Figure 1.14 The scientific method on systematic studies that identify and replicate a result using a variety The scientific method is a useful approach to learning of methods, samples and settings. Although not himself a distinguished more about organisational behaviour. Using theory to scientist, the philosopher Sir Francis Bacon developed the scientific method, develop hypotheses and then collecting and studying relevant data can help generate new knowledge. shown in Figure 1.14, in the 1600s.75 The scientific method begins with theory, which is a collection of verbal and symbolic assertions that specify how and why two or more variables are related, and the conditions scientific method under which they should and should not relate.76 Theories describe the relationships that are proposed to Method of knowledge exist among certain variables, when, and under what conditions. Until they are proven to be correct, theories generation that relies on systematic studies are no guarantee of fact. It is important to systematically test any theory to verify that its predictions are that identify and accurate. replicate a result using a variety of methods, The second step in the scientific method is the development of hypotheses, or written predictions samples and settings specifying expected relationships between certain variables. ‘Setting a specific goal will be positively related to the number of products assembled’ is an example of a hypothesis (and, in fact, it’s true!). So how theory A collection of verbal can you test this hypothesis? and symbolic assertions Hypothesis testing can be done using a variety of research methods and statistical analyses. For our that specify how and why variables are related, purposes, assume we collect data on our predictor, or independent variable, and our criterion, or dependent and the conditions under variable. In this hypothetical case, setting a specific, difficult, achievable goal is the independent variable, which they should and should not relate and the number of products assembled is our dependent variable. We identify a representative group of assemblers, and record their goals and their performance during a one-hour work period. We can then hypotheses analyse the correlation, abbreviated as r, between the two variables to test our hypothesis. The correlation Written predictions specifying expected reflects the strength of the statistical relationship between two variables. Rather than answering a question relationships between with a ‘yes’ or ‘no’, the correlation answers with ‘how strong the relationship is’. certain variables The correlation ranges from 1 to +1, and can be positive or negative. A correlation of 0 means that there independent variable is no statistical relationship. We can also imagine a correlation as a graph. As you can see in Figure 1.15, in The variable that is the context of our example, a correlation of 0 would mean that setting a goal has no effect on the number of predicted to affect something else products assembled, while a correlation of +1 means that there is a perfect positive relationship the higher the goal, the more products assembled. A correlation of +1.0 is as strong a positive relationship as we can get, and dependent variable shows that we can predict the number of products assembled perfectly from the level of the assembler’s goals. The variable predicted to be affected by something else As you can also see in Figure 1.15, a correlation of -1.0 is as strong a negative relationship as we can get. It would indicate that the higher an assembler’s goal, the lower their performance. A negative correlation correlation is not necessarily bad. In this case, it would simply mean that to maximise assemblers’ performance, the Reflects the size and strength of the manager should set lower goals (perhaps goals for lower error rates or faster assembly times). In reality, we statistical relationship never see perfect +1.0 or -1.0 correlations when it comes to people’s behaviour people are just too complicated. between two variables; ranges from −1 to +1 Nonetheless, being able to visualise what these relationships look like can help you to understand the FigureDownload 1.15, we also include a correlation of +0.30, which is more common in OB research. Get relationships. Complete In eBook By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 32 12/08/23 11:44 AM Get Complete eBook Download By email at student.support@hotmail.com CHAPTER 1: An overview of organisational behaviour Correlation = +1.0 120 120 115 115 110 110 105 105 Product made Product made Correlation = 0 100 95 100 95 90 90 85 85 80 80 80 90 100 110 120 80 90 Goal 100 110 120 Goal Correlation = + 0.30 Correlation = –1.0 120 120 115 115 110 110 105 105 Product made Product made 33 100 95 100 95 90 90 85 85 80 80 80 90 100 Goal 110 120 80 90 100 110 120 Goal Figure 1.15 Interpreting correlations Correlations between variables can range from 1 to +1. By studying correlations we can learn more about how two variables are related. Correlations of 1 or +1 are unusual, as is a correlation of 0. Fortunately, we can still learn a great deal from correlations that are statistically significant. The evaluation of relationships between organisational actions and outcomes can help organisations execute strategy more effectively and improve performance. Telstra is a good example. Reducing customer churn can improve performance for companies in low-margin industries like Telstra’s. Telstra maintains low fixed costs and periodically conducts customer surveys to assess and correlate employee satisfaction with customer satisfaction. The company has found that customer loyalty and operational excellence are affected by a satisfied, productive and committed workforce.77 High employee retention also cuts the cost of operations. Because of the important relationship it identified between associate satisfaction and commitment, and the satisfaction of all other constituents (customers, communities, suppliers and shareholders), Telstra has implemented a rigorous set of programs to enhance the retention and satisfaction its employees. Get Complete eBook of Download By78 email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 33 12/08/23 11:44 AM 34 GetTO Complete eBook Download By email at student.support@hotmail.com PART 1: INTRODUCTION ORGANISATIONAL BEHAVIOUR meta-analysis A statistical technique used to combine the results of many different research studies done in a variety of organisations and for a variety of jobs A statistical technique called meta-analysis is used to combine the results of many different research studies done in a variety of organisations and for a variety of jobs. The goal of meta-analysis is to estimate the true relationship between various constructs and to determine whether the results can be generalised to all situations or if the relationship works differently in different situations. Although meta-analysis can often give useful insights into the strength of the relationships between the variables in the studies included in the analysis, there is no guarantee that any one organisation would find the same relationship. This is because many situational factors exist in every organisation that may drastically impact the strength of the relationship, including differences in the job context and differences in the definition of job success. It is important to always test hypotheses and validate theories in your own organisation before making decisions based on them. The game’s up Critical Perspective Numbers can tell the truth but they can also contribute to cover-ups. Just consider the widely variable ways the COVID-19 numbers were reported by media and government departments around the world. Apparent severity depended on whether one was reporting infections versus cases versus hospitalisations, and so on. One popular book, The Tyranny of Metrics by Jerry Muller, raises the critical perspective that some managers are fixated on measurement as an end in itself.79 He proposes that the pressure to quantify performance can lead to ‘gaming the stats’ or ‘teaching to the test’. He acknowledges that metrics are best used to complement rather than replace judgement based on personal experience. Organisational cultures that celebrate gaming and manipulation can emerge from a fixation on numbers. The 2018 Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry in Australia revealed many instances of this sort of gaming and reward system based on metrics at the expense of human relations and basic ethics.80 Muller’s book makes a convincing argument that judgement and ethical considerations need to become more central to decision making and performance achievement. The situated judgement of experienced professionals is rarely expressed in a spreadsheet or graph. It comes out in human relations and daily social communications and, perhaps, cannot be scientifically replicated by others with different or fewer experiences. Reflection question Sometimes coming up with a number to explain and define organisational aspects is important. For example, staff turnover and absenteeism percentages are crucial numerical indicators of whether something about organisational behaviour needs to be fixed. But what other data need to be understood to make some sort of positive change; for example, to lower staff turnover and reduce absenteeism, and are those other data always quantitative? Global replication Historically, much of the research on organisational behaviour has been done in the United States; however, increasing amounts of research is happening today in other parts of the world. Assuming that everyone in the world shares the same values, norms and expectations about work is incorrect. National boundaries no longer limit many organisations, and many US companies employ people from around the world. Likewise, Australasian companies also take a necessary global outlook for their markets and diversify their labour force composition. 1.6 SUMMARISING THE FRAMEWORK OF THE BOOK Figure 1.16 presents the framework around which our book is organised. As you can see, we suggest that organisations and the behaviours of the people who comprise them all function within an environment context. Both this chapter and Chapter 2 help establish the key elements of this context. At the centre of the framework we also note several important factors that determine whether or not managers and organisations are effective. These factors, discussed earlier in this chapter, involve enhancing performance Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 34 12/08/23 11:44 AM Get Complete eBook Download By email at student.support@hotmail.com CHAPTER 1: An overview of organisational behaviour 35 How does the environment matter? Why do individuals do what they do? Individual characteristics Individual values, perceptions, and reactions Motivating behaviour Motivating behaviour with work and rewards Why does leadership matter? Traditional leadership approaches Modern leadership approaches Power, influence and politics Why do groups and teams do what they do? Groups and teams Decision making and problem solving Communication Conflict and negotiation What makes managers and organisations effective? Enhancing performance behaviours Enhancing commitment and engagement Promoting citizenship behaviours Minimising dysfunctional behaviours How do organisational characteristics influence effectiveness? Organisation structure and design Organisation culture Change management How does the environment matter? Figure 1.16 Organisational behaviour framework An array of environmental, individual, group and team, leadership, cultural and organisational characteristics impact organisational behaviour. If managers understand these concepts and characteristics, they can better promote organisational effectiveness. behaviours, enhancing commitment and engagement, promoting citizenship behaviours and minimising dysfunctional behaviours. Operating between the environmental context and the indicators of effectiveness are four sets of factors. One set of factors relates to individuals and includes individual characteristics, individual values, perceptions and reactions, motivation concepts and models, and the role of work and reward in tapping those motivation concepts and models. The three chapters in Part 2 discuss these factors in detail. A second set of factors that determine effectiveness involves groups and teams. Special considerations here are the role of groups and how organisations use teams, decision-making and problem-solving processes, communication and diversity. Part 3 includes four chapters that explore these factors. Leadership is also of great importance in determining organisational effectiveness. Traditional leadership models; modern leadership approaches; power, influence and politics; and conflict and negotiation are all important aspects of leadership and are covered in detail in Part 4. Finally, several factors associated with the organisation itself also impact effectiveness. Organisation structure, design and culture, and how the organisation manages change, are the central elements of importance and are the subject of Part 5. We believe that this framework will serve as a useful roadmap for you as you learn about organisational behaviour. The framework will be reintroduced at the beginning of each part in the book. We will use it to both remind you of where our discussion has taken us and where we are headed next. Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 35 12/08/23 11:44 AM 36 GetTO Complete eBook Download By email at student.support@hotmail.com PART 1: INTRODUCTION ORGANISATIONAL BEHAVIOUR STUDY TOOLS SUMMARY 1.1 Organisational behaviour is the study of human behaviour in organisational settings, the interface between human behaviour and the organisation, and the organisation itself. The study of OB is important because organisations have a powerful influence on our lives. It also directly relates to management in organisations. Indeed, by its very nature, management requires an understanding of human behaviour to help managers better comprehend behaviours at different organisational levels, at the same organisational level, in other organisations and in themselves. 1.2 A manager’s job can be characterised in terms of four functions. These basic managerial functions are planning, organising, leading and controlling. Planning is the process of determining the organisation’s desired future position and deciding how best to get there. Organising is the process of designing jobs, grouping jobs into manageable units, and establishing patterns of authority among jobs and groups of jobs. Leading is the process of motivating members of the organisation to work cross-culturally together towards the organisation’s goals. Controlling is the process of monitoring and correcting the actions of the organisation and its people to keep them headed towards their goals. 1.3 Why is it that some people rise in organisations despite being only average accountants, marketers, researchers and so on? Often the answer is that those people know how to culturally interact effectively with other people. Effective interaction with people is critical for advancement in organisations, and often for effective job performance. Being able to understand what people think and feel, knowing how to persuade and motivate others, and knowing how to resolve conflicts and forge cooperation are among the most important skills of successful leaders.81 ‘People skills’ are often what make the difference between an average and an excellent performer in almost any job. 1.4 The managerial context of OB can be viewed from the perspective of basic management functions, critical management skills and overall human resource management. Additional contextual perspectives – most notably the systems and contingency perspectives and the interactional view – also influence our understanding of organisational behaviour. 1.5 Research plays a role in organisational behaviour by helping to verify individual ideas and common-sense estimations with the collective view about what the best solutions should be. We need science and research because they are built on careful and systematic testing of assumptions and conclusions. This process allows us to evolve our understanding of how things work and it allows us to learn when goals, confidence, satisfaction, cohesion and rewards affect outcomes and why it happens. That is why you need to learn the theories and why you can’t just operate on common sense. 1.6 This book can help you better understand yourself, understand organisations, understand the role of organisational behaviour in your personal career success, and improve your OB skills. All we can do, however, is make these things possible: you need to make them happen. We encourage you to stay open-minded and receptive to new ideas and to information that disconfirms some of your current assumptions about people, organisations and management. By studying the chapters and putting some thought into how you can use the various concepts in different situations, you will be taking an important step in advancing your career. Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 36 12/08/23 11:44 AM Get Complete eBook Download By email at student.support@hotmail.com CHAPTER 1: An overview of organisational behaviour Managing growth at MBT Direct Even though MBT Direct evolved to become an entirely virtual organisation, it is still comprised of people. It is the people who set strategy, acquire resources, and create and sell new products. Its people manage inventory and information technology. As a niche business, MBT Direct must strive to understand the people who work in the organisation. Employees, business owners and investors, and managers are all relating with each other to help the company achieve success. Reflect on the opening scenario question. Would you still offer the same advice to MBT direct? 37 Response to OB in the Real World REVISION QUESTIONS 1. a. 2. b. True False d. The study of organisational behaviour is beneficial to managers because _________. a. b. c. 3. c. The successful application of organisational behaviour principles can reduce a company’s rates of turnover and absenteeism. d. managers who cannot cite important organisational behaviour texts rarely get promoted it enables them to be dispassionate when firing underperforming employees it enables them to exploit human resources more efficiently b. Sally suspects that Gary is underperforming because he is not getting enough sleep, not because he is incapable. She lets him work from 10 to 6 instead of 9 to 5, and his performance improves. Sally must convince Gary and Rob to work overtime. She knows that Gary’s top priority is his own self-interest, so when talking to him, she emphasises how much money he’ll make. She knows that Rob’s top priority is her wellbeing, so when talking to him, she emphasises how much it will mean to her. Gary and Rob both work overtime happily. 5. a. volatile c. inflexible d. sustainable aggressive Deming believed that removing _______ from the workplace gives employees pride in their workmanship, which increases production. a. fear c. competition b. 6. Sally has to lay off either Rob or Gary. Although she likes Rob more, she lays him off because Gary fits in better with the team overall and is better able to execute the company’s strategic mission. Successful business strategies are grounded in creating and maintaining a competitive advantage that is ______________. b. working with people is an improvable skill Which of the following scenarios most clearly exemplifies the successful use of a manager’s diagnostic skills? a. 4. A program on Sally’s computer stops working. She could ask Gary, a member of the tech support team, to fix it, but Sally is good with computers and fixes the problem herself in less time than it would have taken Gary to come over and fix it. d. diversity hierarchy The steps of the scientific method go in which order? a. Hypothesis, theory, data, verification c. Data, hypothesis, theory, verification b. d. Theory, hypothesis, data, verification Data, theory, hypothesis, verification Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 37 12/08/23 11:44 AM 38 GetTO Complete eBook Download By email at student.support@hotmail.com PART 1: INTRODUCTION ORGANISATIONAL BEHAVIOUR CASE STUDY Head first Virgin Australia While Virgin Australia suffered financial turmoil during the COVID-19 pandemic and associated shutdowns of air travel, by the start of 2022 it was forecasting a return to pre-bankruptcy volumes of domestic travel on its salvaged airline.82 The company had previously set an example in people management, such as in 2018 when it pioneered its mobile- and web-based platform for health and wellbeing, Better Me, which was compiled by organisational psychologists and mindfulness experts at Smiling Mind. The program was available for staff and included guided meditations for minimising stress, maximising sleep, and improving decision making, concentration and focus.83 Virgin Australia passengers and staff could also access the program to counter the common phenomenon of the fear of flying. It started in 2019 with passengers able to note if they have travel anxiety when they book their ticket. Tailored communications to ease anxiety arrive ahead of their flight, and then trained staff interact with them during the flight to create a calming environment. Richard Branson, founder of the Virgin Group, has broadly supported mental health initiatives for Virgin’s staff and customers around the world. Commenting as the 2022 new year commenced, Branson said, ‘Supporting the mental health of employees, customers, and the wider community should already be a major priority for companies around the world. In the year ahead, as working from home becomes more common and our lives grow more interconnected than ever, there will be even greater focus upon mental health alongside physical health and wellbeing. This should have a positive impact on individuals, businesses, and communities.’84 The Australian Civil Aviation Safety Authority (CASA) aligned with Branson’s view in a report to the International Civil Aviation Organization (ICAO) in which pilots and air traffic controllers were identified as being at high risk of mental stress, especially during the pandemic and other pivotal safety events.85 Branson also promotes the companies that assist and support other companies to address mental health issues, including Smiling Mind, Headspace and Soma Analytics. While Branson and Virgin Australia set a good benchmark, there is a rising cadre of companies that recognise and address the stresses and strains of workplaces and implement mental health initiatives as a result. Other examples you may like to investigate are Australia Post (first government business enterprise to appoint a Chief Mental Health Officer),86 and iNSPIRETEK a $2.5 million seed-funded start-up aiming to help young athletes around the world better manage emotional wellbeing.87 Questions Mainstream 1. 2. What are the main reasons why mental health initiatives would be adopted by organisations such as Virgin Australia and Australia Post? Complete a brief cost-benefit analysis of Virgin’s Better Me platform, based on the main points in the case study. Critical 1. 2. Discuss whether your own organisation is doing what it should in order to address the mental health issues of all of its staff. Is mindfulness in the workplace just a management fad, or is there something substantial in its core? ENDNOTES 1. McIlvaine, H. (2020, 21 August). MTB Direct launches in New Zealand. Inside Retail Australia. Available online: https://insideretail. com.au/news/mtb-direct-launches-in-newzealand-202008; Odyssey Private Equity. (2021, 2 March). Media announcement: MTB Direct. Available online: https://odysseype. com.au/media-announcement-mtb-direct; Abaño, J. (2020, 24 June). Bike sales in ANZ skyrocket during COVID-19 lockdown. Inside Retail Australia. Available online: https:// insideretail.com.au/news/bike-sales-in-anzskyrocket-during-covid-19-lockdown-20200; MTB Direct. (2023). About us. Available online: https://www.mtbdirect.com.au/pages/aboutus; McIlvaine, H. (2018, 1 June). Q&A with Jen Geale of Mountain Bikes Direct. Inside Retail Australia. Available online: https://insideretail. com.au/news/qa-with-jen-geale-of-mountainbikes-direct-201805. 2. Small Business Big Marketing. Being an Unconventional Business Underpins Mountain Bikes Direct’s Massive Success. Available online: https://smallbusinessbigmarketing. com/being-an-unconventional-businessunderpins-mountain-bikes-directs-massivesuccess. 3. For a classic discussion of the meaning of organisational behaviour, see Cummings, L. (1978, January). Toward Organizational Get Complete eBook Download By email at student.support@hotmail.com Copyright 2024 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-300 BK-CLA-GRIFFIN_2E-230108-Chp01.indd 38 12/08/23 11:44 AM Get Complete eBook Download By email at student.support@hotmail.com CHAPTER 1: An overview of organisational behaviour Behavior. Academy of Management Review, 90– 8. See also Nicholson, N., Audia, P. & Pillutla M. (eds) (2005). The Blackwell Encyclopedia of Management: Organizational Behavior (Vol. 11). London: Blackwell Publishing. 4. Lubit, R. (2004, March/April). The Tyranny of Toxic Managers: Applying Emotional Intelligence to Deal with Difficult Personalities. Ivey Business Journal. Available online: http://iveybusinessjournal.com/ publication/the-tyranny-of-toxic-managersan-emotional-intelligence-approach-todealing-with-difficult-personalities. 5. Flynn, M., Castellanos, E. & FloresAndrade, A. (2018). Safety Across Cultures: Understanding the Challenges. Professional Safety, 63, 28–32. Available online: https:// aeasseincludes.assp.org/professionalsafety/ pastissues/063/01/F1_0118.pdf. 6. Nielsen, R. K. (2017). Global Mindset in Context: Middle Manager Microfoundations of Strategic Global Mindset. Academy of Management Proceedings, 2017(1). Available online: https://doi.org/10.5465/ ambpp.2017.11939abstract. 7. Javidan, M., Steers, R. M. & Hitt, M. A. (2007). The Global Mindset, Advances in International Management (Vol. 19). New York: Elsevier. 8. Arora, A., Jaju, A., Kefalas, A. G. & Perenich, T. (2004). An Exploratory Analysis of Global Managerial Mindsets: A Case of US Textile and Apparel Industry. Journal of International Management, 10, 393–411. 9. Javidan, M., Steers, R. M. & Hitt, M. A. (2007). The Global Mindset, Advances in International Management (Vol. 19). New York: Elsevier. 10. Story, J. S. P. & Barbuto, J. E. (2011). Global Mindset: A Construct Clarification and Framework. Journal of Leadership & Organizational Studies, 18(3), 377–84. 11. Dumaine, B. (1995, August). Don’t Be an Ugly American Manager. Fortune, 225. 12. Lane, H. W., Maznevski, M. & Dietz, J. (2009). International Management Behavior: Leading with a Global Mindset (6th ed.). Sussex, UK: John Wiley & Sons; Hong, H.J. & Minbaeva, D. (2022). Multiculturals as strategic human capital resources in multinational enterprises. Journal of International Business Studies, 53(7), 95–125, https://doi.org/10.1057/s41267021-00463-w. 13. Warren, K. (2009). Developing Employee Talent to Perform, eds. J. M. Phillips & S. M. Gully. New York: Business Expert Press; HSBC (2022). About Us. 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