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ORGANIZATIONAL BEHAVIOR:
THEORIES AND CONCEPTS
Assoc. Prof. Suthinan Pomsuwan, Ph.D.
B.A. (Public Relations) Bangkok University
M.L.A. (Mass Communications)
Oklahoma City University, U.S.A.
Ph.D. (Leadership and Human Behavior)
U.S. International University, U.S.A.
T49053-2
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ORGANIZATIONAL BEHAVIOR:
THEORIES AND CONCEPTS
Copyright ã 2007 by Bangkok University
All rights reserved. No part of this publication may be used or reproduced in any
manner whatsoever without written permission by Bangkok University.
Publisher and Advertiser by Asst. Prof. Chanunshee Pangkhanont
Published by Bangkok University Press
9/1 Moo 5, Phahonyothin Road, Tambon Klong Nung
Amphur Klong Luang, Pathum Thani 12120, Thailand
Tel.: +66-2902-0299 ext. 2850-2852
Fax: +66-2902-0299 ext. 2850
Home Page: http://bupress.bu.ac.th E-mail: bupress@bu.ac.th
Distributed by Bangkok University Cooperatives
119 Rama IV Road, Klong Toey, Bangkok 10110, Thailand
Tel.: +66-2350-3500 ext. 1340
Sixth edition published in January 2007 (90 copies)
Reader: Prof. Scott Hershberger, Ph.D.
Department of Psychology
California State University, Long Beach, U.S.A.
Cataloging in Publication Data
Suthinan Pomsuwan.
Organizational behavior : theories and concepts / Suthinan Pomsuwan ; Bangkok University. --6th ed. -- Pathum Thani : Bangkok Univ. Press., 2007.
404 p. : ill.
Includes bibliographical references.
ISBN 974-219-143-3
1. ORGANIZATIONAL BEHAVIOR. 2. MANAGEMENT. I. Bangkok University. II. Title.
HD58.7 S973O 2007
CIP
BA511/ jutamath.s/ sirithorn.b
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Preface
Organizations are undergoing unprecedented and revolutionary change. From the speed of
decision making, to technological and global competitive pressures, to mergers and acquisitions, to the
need to rethink business processes and alliances, organizations are constantly faced with shifting
demands. And they must respond effectively, remaining flexible and transforming themselves for the new
world of work. Organizational Behavior is written with these changes as a central focus-to explain
through current, often high-tech examples what students need to know about organizations as they enter
employment or continue their work lives. A major goal of this textbook is not just to explain the
fundamental theories and concepts of organizational behavior but to help students apply those theories
and concepts to their personal lives and work lives.
This textbook is divided into seventeen chapters. Chapter 1, “Introduction to Organizational
Behavior”. Chapter 2, “Personality.” Chapter 3, “Perception and Attribution”. Chapter 4, “Learning and
Reinforcement”. Chapter 5, “Motivation in the Work Setting”. Chapter 6, “Job Stress”. Chapter 7, “Group
Behavior”. Chapter 8, “Power and Politics Behavior”. Chapter 9, “Conflict and Negotiation”. Chapter 10,
“Leadership: Foundation”. Chapter 11, “Leadership: Contemporary Developments”. Chapter 12,
“Interpersonal Communication”. Chapter 13, “Decision Making in Organization”. Chapter 14, “Job
Design”. Chapter 15, “Organizational Design”. Chapter 16, “Organizational Culture”. And Chapter 17,
“Organizational Change”.
From those seventeen chapters, I have tried to use an approachable, inviting writing style to put
students at ease and help them understand even the most complex theories and concepts. And I have
tried to dig beyond the theories and concepts to explain their significance, then bring them to life with
current company examples and individual quotations. I hope that my efforts have succeeded.
Associate Professor Suthinan Pomsuwan, Ph.D
Bangkok University International College
Bangkok University
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Table of Contents
Preface
Acknowledgements
Author’s Biography
Reader’s Biography
Reader’s Acceptance
Reader’s Evaluation
List of Figures
List of Tables
Chapter 1
Chapter 2
Page
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XXVII
Introduction to Organizational Behavior
Chapter Objectives
Definition of Organizational Behavior
Goals of Organizational Behavior
Explanation
Prediction
Control
Historical Overview of Organizational Behavior
Scientific and Classical Management Era (1910-1920)
Bureaucracy Era (1920-1940)
Human Relations and Group Dynamics Era (1940-1950)
Decision Making and Leadership (1950-1960)
Sociotechnical and Systems Theory (1960-1980)
Contingency Theory Era (1980-1990)
Global Management, Customer Focus, Information
Technology, Diversity, Business Ethics (1990-present)
Summary
Discussion Questions
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Personality
Chapter Objectives
The Meaning of Personality
The Self-Concept : Self-Esteem and Self-Efficacy
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Chapter 3
(xiv)
Personal-Situation Interaction
The Development of Personality
Adult Life Stages
Immaturity to Maturity
Major Determinants of Personality
Biological Contributions
Cultural Contributions
Contributions from the Family
The Socialization Process
More Immediate Situational Considerations
Summary
Discussion Questions
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Perception and Attribution
Chapter Objectives
Definition of Perception
Perceptual Selection
External Factors
Internal Factors
Perceptual Organization
Person Perception
Characteristics of the Person Perceived
Characteristics of the Perceiver
The Situation
Impression Management
Perceptual Error
Accuracy of Judgment in Person Perception
Perceptual Defense
Stereotyping
Halo Effect
Projection
Expectancy Effects
Attribution : Perceiving the Causes of Behavior
The Attribution Process
Internal and External Causes of Behavior
Attributions of Success and Failure
Summary
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Organizational Behavior: Theories and Concepts
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Chapter 4
Chapter 5
Discussion Questions
Learning and Reinforcement
Chapter Objectives
Theories of Learning and Reinforcement
Classical Conditioning
Operant Conditioning
Social Cognitive Theory
Reinforcement Contigencies
Reinforcers
Positive Reinforcement Contigencies
Punishment Contigencies
Escape Contigencies
Avoidance Contigencies
Extinction Contigencies
Reward Schedules
Continuous Reward Schedules
Intermittent Reinforcement Schedules
Interval Schedules
Behavior Modification
Behavioral Events
Behavioral Contigency Management
Applications of OB Mods
Critism of OB Mods
Goal Setting
Goal Setting Theory
Goal Setting Attributes
Criticisms of Goal Setting
Summary
Discussion Questions
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Motivation in the Work Setting
Chapter Objectives
The Nature of Motivation in Organizations
Motivation : A Definition
Motivation and the Work Ethic
Need Theories
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(xv)
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Maslow’s Need Hierarchy Theory
Alderfer’s ERG Theory
Practical Applications of Need Theories
Goal Setting Theory
Locke and Latham’s Goal Setting Theory
Practical Conclusions of Goal Setting Research
Equity Theory
Adam’s Equity Theory
Applying Equity Theory : Some Motivational Tips
Expectancy Theory
Basic Elements of Expectancy Theory
Practical Applications of Expectancy Theory
Creating Jobs That Motivate
Job Enlargement and Job Enrichment
The Job Characteristics Model
Practical Suggestions for Applying the Job Characteristics
Model
Summary
Discussion Questions
Chapter 6
(xvi)
Job Stress
Chapter Objectives
The Nature of Job Stress
The Dual Nature of Stress
Inevitability of Stress
Personal Relations to Stress
Importance for Organizational Effectiveness
Sources of Job Stress
Job Characteristics
Interpersonal Relationships
Personal Factors
Consequences of Job Stress
Physical Health
Psychological Well-Being
Performance
Individual Decision Making
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Chapter 7
Individual Differences and Stress
Self-Esteem
Tolerance for Ambiguity
Type A Personality
Coping with Job Stress
Work-Focused Coping Strategies
Emotion-Focused Coping Strategies
Organizational Programs to Manage Stress
Summary
Discussion Questions
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Group Behavior
Chapter Objectives
Defining and Classifying Groups
Stages of Group Development
The Five-Stage Model
The Punctuated-Equilibrium Model
Work Group Behavior
External Conditions Imposed on the Group
Organization Strategy
Authority Structures
Formal Regulations
Organizational Resources
Human Resource Selection Process
Performance Evaluation and Reward System
Organizational Culture
Physical Work Setting
Group Member Resources
Abilities
Personality Characteristics
Group Structure
Formal Leadership
Roles
Norms
Status
Size
Composition
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Cohesiveness
Group Processes
Group Tasks
Group Decision Making
Group and Individual
Groupthink and Groupshift
Group Decision-Making Techniques
Summary
Discussion Questions
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Chapter 8
Power and Politics Behavior
Chapter Objectives
A Definition of Power
Contrasting Leadership and Power
Bases of Power
Coercive Power
Reward Power
Legitimate Power
Expert Power
Referent Power
Depedency :The Key to Power
The General Depedency Postulate
Creating Depedency
Power Tactics
Power in Groups : Coalition
Sexual Harassment : Unequal Power in the Workplace
Politics : Power in Action
The Reality of Politics
Impression Management
Defensive Behaviors
Summary
Discussion Questions
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Chapter 9
Conflict and Negotiation
Chapter Objectives
A Definition of Conflict
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Organizational Behavior: Theories and Concepts
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Transitions in Conflict Thought
The Traditional View
The Human Relations View
The Interactionist View
Differentiating Functional from Dysfunctional Conflicts
The Conflict Process
Stage I : Potential Opposition
Stage II : Cognition and Personalization
Stage III : Behavior
Stage IV : Outcomes
Negotiation
Bargaining Strategies
Issues in Negotiation
Toward Improving Negotiation Skills
Summary
Discussion Questions
Chapter 10
Leadership : Foundation
Chapter Objectives
The Nature of Leadership
A Definition of Leadership
A Framework of Leadership Perspectives
Early Approaches to Leadership
Trait Approaches to Leadership
Behavioral Approaches to Leadership
The LPC Theory Leadership
Task and Relationship Motivation
Situational Favorableness
Evaluation and Implications
The Path-Goal Theory of Leadership
Basic Premises
Evaluation and Implications
The Vroom-Yettom-Jago Model of Leadership
Basic Premises
Evaluation and Implications
The Leadership-Member Exchange Model
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The Life Cycle Theory
Summary
Discussion Questions
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Chapter 11
Leadership : Contemporary Developments
Chapter Objectives
Leadership as Influence
Influence-based Approaches to Leadership
Transformational Leadership
Charismatic Leadership
Leadership Substitutes
The Nature of Leadership Substitutes
Workplace Substitutes
Superleadership
Transactional and Charismatic Leadership Models
Transactional Leadership Model
Charismatic Leadership Model
Transformational Leadership Model
Inspirational Motivation
Intellectual Stimulation
Idealized Influence
Individualized Consideration
Significance for Leaders
Summary
Discussion Questions
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Chapter 12
Interpersonal Communication
Chapter Objectives
Communication Process
Nature of Interpersonal Communication
Communication Objectives
One-way and Two-way Communication
Perception and Communication
Verbal and Nonverbal Communication
Overt and Latent Meaning
Status and Communication
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Chapter 13
Organizational Communication Networks
Downward Communication
Upward Communication
Lateral Communication
Informal Communication
Criteria of Network Effectiveness
Task Characteristics and Communication
Laboratory Research on Communication Networks
Network Analysis in Field Research
Communication Problems and Rumors
Incomplete Comprehension
Overloading
Insufficient Upward Communication
Insufficient Downward Communication
Summary
Discussion Questions
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Decision Making in Organization
Chapter Objectives
Meaning of Rationality
Rational-Choice Models
Assumption about Information
Assumption about Preferences
Phases of the Decision Process
Limits of Rationality
Information Acquisition and Interpretation
Evaluation and Choice
Satisfaction Models
Bounded Rationality
Incrementalism
Janis and Mann Decision Model
Five Coping Patterns
Effectiveness of the Five Coping Patterns
Antecedent Conditions Evoking Each Coping Pattern
The Decisional Balance Sheet
Organization Decision Making
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Optimizing
Satisficing
Political Decision Models
Organized-Anarchy Models
Mintzberg’s Theory on Organizational Decisions
Development
Selection
Political Activity
Aids for Improving Decision Making
Structured Association Techniques
Delphi Forecasting Techniques
Outcome Psychodrama
Decision Trees
Mathematical Models
Summary
Discussion Questions
Chapter 14
(xxii)
Job Design
Chapter Objectives
A Definition of Job Design
Relation to Reengineering
Comparative Framework
Common Job Design Approaches
Job Rotation
Job Engineering
Job Enlargement
Job Enrichment
Sociotechnical Systems
Technology and Job Design
Work-Flow and Task Uncertainty
Task Interdependence
Job Characteristics Enrichment Model
Basic Framework
Job Characteristics
Individual Differences
Job Diagnosis
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Implementation Approaches
Technology and Job Characteristics
Social Information Processing
Sociotechnical Systems Models
Social System
Technological System
Moderators
Key Principles
Organizational Significance
Summary
Discussion Questions
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Chapter 15
Organizational Design
Chapter Objectives
Principles of Organizing
Decentralization and Centralization
Tall and Flat Structures
Unity and Chain of Command
The Classical Approach to Organizational Design
An Assessment of Weber’s View
The Behavioral Approach to Organizational Design
The Sociotechnical Systems Approach
The Modern Organization Designs
Functional Design
Product Design
Hybrid Design
Summary
Discussion Questions
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Chapter 16
Organizational Culture
Chapter Objectives
A Definition of Organizational Culture
How Culture Development and Is Transmitted
Sources and Influences on Organizational Culture
Founders and CEOs
National Culture
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(xxiii)
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Regional Culture
Industrial Determinants of Organizational Culture
Organizational Culture and Effectiveness
The Strategic Culture Response
Organizational Culture and Ethics
Employee Loyalty and Whistle Blowing
Multicultural and Diverse Organizations
A Culture That Value Diversity : Implementing Multicultural
Characteristics
Managing Intergroup Conflict
Changing Organizational Culture
Diagnosing Culture Change : External Adaptation and
Internal Integration
Culture Change Guidelines
Leading Culture Change Process
Summary
Discussion Questions
Chapter 17
Organizational Change
Chapter Objectives
The Dynamics of Change
Forces for Change
Internal Forces
External Forces
Sources of Resistance to Change
Habits
Resource Limitations
Threats to Power and Influence
Fear of the Unknown
Defensive Perception
A Model for Change in Organizations
Diagnosis
Unfreezing
Movement
Refreezing
Summary
Discussion Questions
References
(xxiv)
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List of Figures
2.1 A Career-Stage Model
2.2 The Relationship between Age and Satisfaction
3.1 Basic Elements in the Perception Process
3.2 Contrast Principle of Perception
3.3 Test of Perceptual Set
3.4 The Facets of Impression Management
3.5 The Attribution Process
4.1 Classical Conditioning Process : Pairing a Conditioned Stimulus with
Conditioned Response
4.2 Reciprocal Determinism
4.3 Summary of Reinforcement Contigencies
4.4 Behavioral Contigency Management
4.5 Goal Setting Model
6.1 Job Stress and Performance
6.2 Individual Differences and Stress
7.1 Why Do People Join Group?
7.2 Stages of Group Development
7.3 The Punctuated-Equilibrium Model
7.4 Group Behavior Model
7.5 Example of Cards Used in Asch Study
7.6 Relationship between Group Cohesiveness, Performance, Norms, and
Productivity
7.7 Effects of Group Processes
8.1 Usage of Power Tactics : From Most of Least Popular
8.2 Impression Management (IM)
9.1 The Conflict Process
9.2 Distributive Versus Integrative Bargaining
9.3 Staking Out the Bargaining Zone
10.1 Early Behavioral Approaches to Leadership
10.2 The Path-Goal Theory of Leadership
10.3 The Leader-Member Exchange (LMX)
10.4 The Life Cycle Theory of Leadership
11.1 Components of the Transformational Leadership Model
12.1 An Example of Upward and Downward Communication through the
Chain of Command
12.2 An Example of Horizontal Communication
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12.3
12.4
12.5
13.1
14.1
14.2
14.3
14.4
14.5
15.1
15.2
15.3
15.4
15.5
15.6
15.7
15.8
16.1
16.2
17.1
17.2
17.3
17.4
17.5
(xxvi)
An Example of Diagonal Communication
Examples of Cluster Chains in the Grapevine
Examples of Centralized and Decentralized Communication Networks
Example of a Decision Tree
The Five Approach
Technology Framework and Job Design
Job Characteristics Enrichment Model
Sample Job Characteristic and Technological Links
Sociotechnical Systems Model
Examples of Tall and Flat Structures
Organizational Structures for a Construction Firm
Likert’s Six Systems of Organization
Example of a Functional Design
Example of a Product Design
Example of a Hybrid Design
The Matrix Unit
Example of Matrix Organization
Visible and Invisible Elements of Organizational Culture
A Model of Industry-Drive Culture Formation
Some of Naisbit’s Megatrends
Three Patterns of Change
Four Phases of Change
A Framework for Diagnosis
A Comparison of Different Methods of Data Collection
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List of Tables
2.1 The Immaturity-Maturity Continuum
2.2 Summary of Characteristics and Dimensions Attributed to the Left and
Right Hernispheres of the Brain
3.1 Personality Judgements on the Basis of Voice Quality
6.1 Sources of Job Stress
6.2 Scale of Stressful Life Events
6.3 Consequences of Job Stress
6.4 Type A Personality
6.5 Coping with Job Stress
10.1 A Framework of Leadership Perspectives
10.2 The LPC Theory of Leadership
11.1 Contrasts between Transactional and Charismatic Leadership
13.1 Example of a Decision with Analysis of Expected Untility
13.2 Characteristics of Rational-Choice and Bounded-Rationality Models
13.3 Characteristics of Four Organizational Decision Theories
13.4 Checklist of Possible Changes
15.1 Pluses and Minuses of Bureaucracy
16.1 Organizational Rites of Passage
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