ROBBINS • JUDGE • MILLETT • BOYLE

ORGANISATIONAL
BEHAVIOUR

8TH EDITION
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Title: Organisational behaviour / Stephen P Robbins, Timothy A Judge, Bruce Millett, Maree Boyle.
Edition: 8th edition
ISBN: 9781488609329 (paperback)
Notes: Includes index.
Subjects: Organizational behavior. Corporate culture. Management.
Other Creators/Contributors: Judge, Tim, author. Millett, Bruce, author. Boyle, Maree, author.
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 Contents
Preface xiv Coming attractions: developing an OB model 17
Guided tour xxi An overview 17
Acknowledgements xxv Inputs 18
Case matrix xxvi Processes 18
About the authors xxix Outcomes 18
Summary 22
PART 1  INTRODUCTION 1 Implications for managers 22
Point/Counterpoint Lost in translation? 23
Chapter 1  What is organisational Questions for review 24
behaviour? 2 Experiential exercise Intoxicated workplaces 24
Case study Apple goes global 25
The importance of interpersonal skills 4
Endnotes 26
What managers do 4
Management functions 4
Management roles 5 PART 2  THE INDIVIDUAL 27
Management skills 6
Effective versus successful managerial activities 7 Chapter 2  Diversity in organisations 28
A review of the manager’s job 8 Diversity 30
Enter organisational behaviour 8 Demographic characteristics of the Australian
Complementing intuition with systematic study 9 workforce 30
Myth or Science? ‘Management by walking Levels of diversity 30
around is the most effective management’ 9 Discrimination 31
Disciplines that contribute to the OB field 10 Personal Inventory Assessments
Psychology 10 Intercultural Sensitivity Scale 31
Social psychology 11 Biographical characteristics 32
Sociology 11 Age 32
Anthropology 12 Gender 33
There are few absolutes in OB 12 Myth or Science? ‘Bald is better’ 34
Challenges and opportunities for OB 12
Race and ethnicity 35
Responding to economic pressures 12
Ethical Choice Board quotas 36
OB in Practice Organisational behaviour,
productivity and big data 13 Disability 36
Other biographical characteristics: tenure, religion,
Responding to globalisation 14
sexual orientation and gender identity 37
Managing workforce diversity 14
Ability 38
Personal Inventory Assessments
Intellectual abilities 39
Multicultural Awareness Scale 14
The benefits of cultural intelligence 40
Improving customer service and people skills 14 Physical abilities 40
Working in networked organisations 15 The role of disabilities 40
Enhancing employee well-being at work 15 Implementing diversity management strategies 41
Improving ethical behaviour 15 Attracting, selecting, developing and retaining
Ethical Choice Holiday deficit disorder 16 diverse employees 41

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OB in Practice Twitter’s diversity issue 42 Case study Job crafting 71

Diversity in groups 43 Endnotes 72
Effective diversity programs 43
Globalisation Worldwide talent search for women 44
Chapter 4  Personality and values 76
Summary 46
Personality 78
Implications for managers 46
What is personality? 78
Point/Counterpoint Affirmative action should be
abolished 47 Personal Inventory Assessments
Questions for review 48 Are You a Type A Personality? 79
Experiential exercise Feeling excluded 48 The Myers–Briggs Type Indicator 79
Case study Human capital in the ageing workforce 48 The Big Five Model 80
Endnotes 49 How do the Big Five traits predict behaviour
at work? 81
The Dark Triad 82
Chapter 3  Attitudes and job satisfaction 54 Other personality traits relevant to OB 84
Attitudes 56 Core self-evaluation 84
What are the main components of attitudes? 56 Self-monitoring 84
Attitudes and behaviour 57 Myth or Science? ‘We can accurately judge
Moderating variables 57 individuals’ personalities a few seconds
Job attitudes 58 after meeting them’ 85
Ethical Choice Are employers responsible for Proactive personality 85
workplace incivilities? 59 Personality and situations 86
Globalisation Exodus phenomenon 60 Situation strength 86
Trait activation theory 87
Are these job attitudes really all that distinct? 61
Job satisfaction 61 Globalisation Is the personality profile of an
entrepreneur the same across different
Measuring job satisfaction 61
countries? 88
OB in Practice A clash of attitudes in health care 62
Values 88
How satisfied are people with their jobs? 63 The importance of values 89
What causes job satisfaction? 64
OB in Practice Dealing with issues of personality
Myth or Science? ‘Happy workers means in the workplace 89
happy profits’ 65
Terminal versus instrumental values 90
Personal Inventory Assessments Generational values 90
Core Self Evaluation (CSE) Scale 66
Linking an individual’s personality and values
The impact of satisfied and dissatisfied employees to the workplace 91
on the workplace 66 Person–job fit 91
Job satisfaction and job performance 67 Person–organisation fit 91
Job satisfaction and OCB 67
Ethical Choice Do you have a cheating personality? 93
Job satisfaction and customer satisfaction 67
International values 93
Job satisfaction and absenteeism 68
Hofstede’s framework for assessing cultures 93
Job satisfaction and turnover 68
The globe framework for assessing cultures 94
Job satisfaction and workplace deviance 68
Managers often ‘don’t get it’ 68 Summary 97
Summary 69 Implications for managers 97
Implications for managers 69 Point/Counterpoint Millennials are more narcissistic 98
Point/Counterpoint Employer–employee loyalty Questions for review 99
is an outdated concept 70 Experiential exercise Generational values
Questions for review 71 and ‘staying put’ 99
Experiential exercise What factors are most Case study The power of quiet 100
important to your job satisfaction? 71 Endnotes 100

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Chapter 5  Emotions and moods 104 Globalisation Does multicultural experience

make for better decisions? 139
What are emotions and moods? 106
The basic emotions 107 Common shortcuts in judging others 139
The basic moods: positive and negative affect 107 Specific applications of shortcuts in
organisations 141
Myth or Science? ‘Smile, and the work world
smiles with you’ 108 The link between perception and individual
decision making 141
The function of emotions 109
Decision making in organisations 142
Sources of emotions and moods 110
The rational model, bounded rationality
Emotional labour 114
and intuition 142
OB in Practice How leaders can influence Common biases and errors in decision making 144
emotions in the workplace 114
OB in Practice The perceptive coach 145
Affective events theory 115
Myth or Science? ‘All stereotypes are negative’ 146
Emotional intelligence 116
The case for EI 117 Influences on decision making: individual
The case against EI 118 differences and organisational constraints 148
Individual differences 148
Ethical Choice Should managers use emotional
Ethical Choice Choosing to lie 149
intelligence (EI) tests? 118
Personal Inventory Assessments Organisational constraints 150
Emotional Intelligence Assessment 119 Three ethical decision criteria 151
Improving creativity in decision making 152
Emotion regulation 119
Creative behaviour 152
OB applications of emotions and moods 120
Causes of creative behaviour 153
Selection 121
Decision making 121 Personal Inventory Assessments
Creativity Scale 154
Creativity 121
Motivation 121 Creative outcomes (Innovation) 154
Leadership 122 Summary 155
Negotiation 122 Implications for managers 155
Customer service 122 Point/Counterpoint Stereotypes are dying 156
Job attitudes 123 Questions for review 157
Deviant workplace behaviours 123 Experiential exercise Five ethical decisions 157
Safety and injury at work 123 Case study The youngest billionaire 157
How managers can influence moods 123 Endnotes 158
Globalisation Creating highly productive teams
across the cultural emotional barrier 124 Chapter 7  Motivation: from concept
to application 162
Summary 125
Implications for managers 125 Defining motivation 164
Point/Counterpoint Sometimes blowing your top Early theories of motivation 164
is a good thing 126 Hierarchy of needs theory 164
Questions for review 127 Theory X and Theory Y 165
Experiential exercise Who can catch a liar? 127 Two-factor theory 166
Case study Can you read emotions from faces? 127 Contemporary theories of motivation 167
Endnotes 128 Self-determination theory 167
Myth or Science? ‘Money can’t buy happiness’ 168
Chapter 6  Perception and individual Goal-setting theory 169
decision making 134 Other contemporary theories of motivation 170
What is perception? 136 Self-efficacy theory 170
Factors that influence perception 136 Reinforcement theory 172
Person perception: making judgments about others 137 Equity theory/organisational justice 173
Attribution theory 137 Expectancy theory 176

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Personal Inventory Assessments An alternative model for temporary groups with

Work Motivation Indicator 177 deadlines 207
Applied motivation: job design 178 Group properties 207
The job characteristics model 178 Group property 1: roles 208
Globalisation Outcry over executive pay is Group property 2: norms 210
heard everywhere 179 Group property 3: status, and group property 4:
How can jobs be redesigned? 180 size and dynamics 213
Job rotation 180 Group property 5: cohesiveness, and group
Job enrichment 180 property 6: diversity 215
Alternative work arrangements 182 Personal Inventory Assessments
Flexitime 182 Communicating Supportively 217
Job sharing 182 Group decision making 217
Telecommuting 183 Groups versus the individual 217
The social and physical context of work 184 Globalisation Making global virtual teams
Applied motivation: employee involvement 184 effective 218
Examples of employee involvement programs 184 Groupthink and groupshift 219
Linking employee involvement programs Myth or Science? ‘US workers are more biased
and motivation theories 185 than Asians’ 219
Applied motivation: rewarding employees 185 Ethical Choice Using peer pressure as an
What do we actually mean by ‘pay’? 186 influence tactic 221
What to pay: establishing a pay structure 186
Group decision-making techniques 221
How to pay: rewarding individual employees
through variable-pay programs 186 Summary 223
Flexible benefits: developing a benefits package 188 Implications for managers 223
OB in Practice Good leaders help create Point/Counterpoint People are more creative
motivating workplaces 189 when they work alone 224
Questions for review 225
Intrinsic rewards: employee recognition
Experiential exercise Wilderness survival 225
programs 189
Case study Negative aspects of collaboration 226
Ethical Choice Sweatshops and worker safety 190
Endnotes 227
Summary 191
Implications for managers 191 Chapter 9  Understanding work teams 232
Point/Counterpoint ‘Face-time’ matters 192 Why have teams become so popular? 234
Questions for review 193 Differences between groups and teams 234
Experiential exercise Assessing employee Types of teams 235
motivation and satisfaction using the job Problem-solving teams 235
characteristics model 193 Self-managed work teams 235
Case study Equity and executive pay 194
Cross-functional teams 236
Endnotes 194
Virtual teams 236
OB in Practice Discussing the popularity of
PART 3  THE GROUP 201 a leader 237
Multi-team systems 237
Chapter 8  Foundations of group Creating effective teams 238
behaviour 202 Contextual factors 238
Defining and classifying groups 204 Team composition 239
Why do people form groups? 204 Globalisation Developing team members’
OB in Practice Building a culture of constructive trust across cultures 240
feedback 205 Myth or Science? ‘Team members who are
Stages of group development 206 “hot” should make the play’ 242
The five-stage model 206 Team processes 243

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Personal Inventory Assessments Emotions 273

Team Development Behaviours 245 Language 273
Turning individuals into team players 245 Silence 273
Selection: hiring team players 245 Communication apprehension 274
Training: creating team players 245 Lying 274
Rewarding: providing incentives to be a Myth or Science? ‘Today, writing skills are
good team player 246 more important than speaking skills’ 274
Ethical Choice Virtual teams leave a smaller Global implications 275
carbon footprint 246 Cultural barriers 275
Beware! Teams aren’t always the answer 247 Cultural context 275
Summary 248 A cultural guide 276
Implications for managers 248 Globalisation Multinational firms adopt English
Point/Counterpoint To get the most out of teams, as global language strategy 277
empower them 249
Summary 279
Questions for review 250
Implications for managers 279
Experiential exercise Composing the ‘perfect’ team 250
Point/Counterpoint Social media presence 280
Case study Tongue-tied in teams 250
Questions for review 281
Endnotes 251
Experiential exercise An absence of non-verbal
communication 281
Chapter 10  Communication 256 Case study Using social media to your advantage 281
Functions of communication 258 Endnotes 282
The communication process 258
Direction of communication 259 Chapter 11  Leadership 286
Downward communication 259 What is leadership? 288
Upward communication 260 Trait theories 288
Lateral communication 260 Behavioural theories 289
Organisational communication 260 Summary of trait theories and behavioural
Formal small-group networks 260 theories 290
The grapevine 261 Contingency theories 290
Modes of communication 262 The Fiedler model 290
Oral communication 262 Globalisation Leaders broaden their span of
Written communication 263 control in multinational organisations 291
Non-verbal communication 265 Other contingency theories 293
Personal Inventory Assessments Leader–member exchange (LMX) theory 294
Communication Styles 265 Charismatic leadership and transformational
OB in Practice The value of the message 266 leadership 295
Ethical Choice Using employees in organisational Charismatic leadership 295
social media strategy 266 Transformational leadership 297
Choice of communication channel 267 Personal Inventory Assessments
Persuasive communications 271 Ethical Leadership Assessment 300
Automatic and controlled processing 271 Authentic leadership: ethics and trust 300
Interest level 271 What is authentic leadership? 301
Prior knowledge 272 Ethical leadership 301
Personality 272 Servant leadership 302
Message characteristics 272 Trust and leadership 302
Barriers to effective communication 272 Ethical Choice Holding leaders ethically
Filtering 272 accountable 303
Selective perception 272 How is trust developed? 303
Information overload 273 Trust as a process 304

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What are the consequences of trust? 304 The ethics of behaving politically 341
Leading for the future: mentoring 305 Personal Inventory Assessments
Myth or Science? ‘Top leaders feel the Gaining Power and Influence 341
most stress’ 306
Summary 342
Challenges to the leadership construct 306 Implications for managers 342
Leadership as an attribution 307 Point/Counterpoint Everyone wants power 343
Substitutes for and neutralisers of leadership 307 Questions for review 344
Online leadership 308 Experiential exercise Understanding power
Finding and creating effective leaders 309 dynamics 344
Selecting leaders 309 Case study Barry’s peer becomes his boss 344
Training leaders 309 Endnotes 345
OB in Practice What influence do you exert as a
leader? 309
Chapter 13  Conflict and negotiation 350
Summary 311 A definition of conflict 352
Implications for managers 311 Traditional view of conflict 352
Point/Counterpoint Heroes are made, not born 312 Interactionist view of conflict 352
Questions for review 313 Types and loci of conflict 353
Experiential exercise What is a leader? 313 Types of conflict 353
Case study Leadership factories 313 Loci of conflict 353
Endnotes 314 The conflict process 354
Stage I: potential opposition or
incompatibility 355
Chapter 12  Power and politics 322
OB in Practice Tips for managing family
A definition of power 324
conflicts in business 355
Bases of power 324
Formal power 325 Stage II: cognition and personalisation 356
Personal power 325 Stage III: intentions 357
Which bases of power are most effective? 326 Stage IV: behaviour 358
Dependency: the key to power 326 Stage V: outcomes 359
The general dependency postulate 326 Negotiation 361
What creates dependency? 326 Bargaining strategies 362
Power tactics 327 Myth or Science? ‘Teams negotiate better
than individuals in collectivistic cultures’ 364
Globalisation Power, gender and sexual
harassment in France 329 The negotiation process 365
Sexual harassment: unequal power in the Individual differences in negotiation
workplace 329 effectiveness 366

OB in Practice How power affects people 330 Globalisation Trust is an issue 369
Third-party negotiations 369
Ethical Choice Should all sexual behaviour be
prohibited at work? 332 Ethical Choice Using empathy to negotiate
more ethically 370
Politics: power in action 332
Definition of organisational politics 332 Personal Inventory Assessments
The reality of politics 333 Strategies for Handling Conflict 370
Causes and consequences of political behaviour 334 Summary 371
Factors contributing to political behaviour 334 Implications for managers 371
Myth or Science? ‘Powerful leaders keep their Point/Counterpoint Conflict benefits organisations 373
(fr)enemies close’ 336 Questions for review 374
How do people respond to organisational Experiential exercise A negotiation role-play 374
politics? 336 Case study Choosing your battles 375
Impression management 338 Endnotes 375

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Do organisations have uniform cultures? 411

PART 4  THE ORGANISATION SYSTEM 379 Strong versus weak cultures 412
Culture versus formalisation 412
Chapter 14  Foundations of What do cultures do? 412
organisational structure 380 Culture’s functions 412
What is organisational structure? 382 Culture creates climate 413
Work specialisation 382 The ethical dimension of culture 413
Departmentalisation 383 Culture and innovation 414
Chain of command 384 Culture as an asset 414
OB in Practice Unleashing the constraints Culture as a liability 415
of structure 385 Globalisation Creating a multinational
Span of control 386 organisational culture 416
Centralisation and decentralisation 386 Creating and sustaining culture 417
Formalisation 387 How a culture begins 417
Common organisational designs 388 Keeping a culture alive 417
The simple structure 388 Myth or Science? ‘An organisation’s culture is
The bureaucracy 388 forever’ 418
Ethical Choice Ethical concerns of deskless OB in Practice Dealing with a toxic culture in
workplaces 389 hospitals 420
The matrix structure 390 Summary: how cultures form 421
New design options 391 How employees learn culture 422
The virtual organisation 391 Stories 422
The boundaryless organisation 392 Rituals 422
Globalisation The world is my corporate Symbols 422
headquarters 393 Language 422
The leaner organisation: downsizing 394 Creating an ethical organisational culture 423
Personal Inventory Assessments Ethical Choice A culture of compassion 424
Organisational Structure Assessment 395 Creating a positive organisational culture 425
Why do structures differ? 395 Building on employee strengths 425
Strategy 395 Rewarding more than punishing 425
Organisation size 396 Emphasising vitality and growth 425
Technology 397 Limits of positive culture 426
Myth or Science? ‘Employees can work Spirituality and organisational culture 426
just as well from home’ 397 What is spirituality? 426
Environment 398 Why spirituality now? 426
Organisational designs and employee behaviour 399 Characteristics of a spiritual organisation 427
Criticisms of spirituality 427
Summary 401
Global organisational culture 428
Implications for managers 401
Point/Counterpoint The end of management 402
Personal Inventory Assessments
Comfort with Change Scale 429
Questions for review 403
Experiential exercise Dismantling a bureaucracy 403 Summary 430
Case study Boeing Dreamliner: engineering Implications for managers 430
nightmare or organisational disaster? 404
Point/Counterpoint Organisations should strive
Endnotes 405 to create a positive organisational culture 431
Questions for review 432
Chapter 15  Organisational culture 408 Experiential exercise Rate your classroom culture 432
What is organisational culture? 410 Case study Mergers don’t always lead to culture
A definition of organisational culture 410 clashes 433
Culture is a descriptive term 410 Endnotes 433

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Chapter 16  Organisational change and What is stress? 455

stress management 438 Potential sources of stress 456
Forces for change 440 Myth or Science? ‘When you’re working hard,
Planned change 441 sleep is optional’ 457
Resistance to change 442 Individual differences 459
Globalisation The state of perpetual change: Ethical Choice Manager and employee stress
globalisation 442 during organisational change 459

Overcoming resistance to change 444 Cultural differences 460

The politics of change 445 Consequences of stress 460
Approaches to managing organisational change 445 Managing stress 462
Lewin’s three-step model 446 Personal Inventory Assessments
Tolerance of Ambiguity Scale 463
Kotter’s eight-step plan for implementing
change 447 Summary 464
Action research 447 Implications for managers 464
Organisational development 448 Point/Counterpoint Responsible managers relieve
OB in Practice Can coaches really help in times the stress on their employees 465
of change? 450 Questions for review 466
Experiential exercise Strategising change 466
Creating a culture for change 451
Case study When companies fail to change 467
Stimulating a culture of innovation 451
Endnotes 467
Creating a learning organisation 453
Organisational change and stress 454 Glossary 473
Work stress and its management 455 Index 481

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 Preface
Welcome to the eighth edition of Organisational Behaviour! Long considered the standard for all
organisational behaviour textbooks, the text’s latest edition continues its tradition of making
current, relevant research come alive for students. While maintaining the book’s hallmark
features—clear writing style, cutting-edge content and engaging pedagogy—the eighth edition
has been thoroughly updated to reflect the most recent research within the field of organisational
behaviour. While we have preserved the core material, we’re confident that this edition reflects
the most important research and topical issues facing organisations, managers and employees.

What’s new in the eighth edition?

The authors and editorial team at Pearson have worked very closely with existing users and other
key academics in the market to ensure that we have developed a book that continues to be in
line with growing student and lecturer needs. The following list provides a brief summary of the
updates to each chapter.
Chapter 1.  What is organisational behaviour?
• New opening vignette (Turnaround at Tassal)
• New Myth or Science? (‘Management by walking around is the most effective management’)
• New OB in Practice (Organisational behaviour, productivity and big data)
• New feature! Personal Inventory Assessments (Multicultural awareness scale)
• New Ethical Choice (Holiday deficit disorder)
• Major new section (Enhancing employee well-being at work)
• New research on the importance of interpersonal skills
• Updated discussion on challenges and opportunities for OB
• Updated section with new research on improving customer service
• A change to the OB model
• New Point/Counterpoint (Lost in translation?)
• New Experiential Exercise (Intoxicated workplaces)
• New Case Study (Apple goes global)
Chapter 2.  Diversity in organisations
• New opening vignette (A true champion in the executive suite)
• New feature! Personal Inventory Assessments (Intercultural sensitivity scale)
• New Myth or Science? (‘Bald is better’)
• Updated discussion on gender
• New Ethical Choice (Board quotas)
• New OB in Practice (Twitter’s diversity issue)
• New Globalisation (Worldwide talent search for women)
• New Point/Counterpoint (Affirmative action should be abolished)
• Updated Case Study (Human capital in the ageing workforce)
Chapter 3.  Attitudes and job satisfaction
• New opening vignette (Patching together a career)
• New Ethical Choice (Are employers responsible for workplace incivilities?)
• New research and discussion on employee engagement
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 PREFACE

• New Globalisation (Exodus phenomenon)

• New OB in Practice (A clash of attitudes in health care)
• New research on cultural differences in job satisfaction
• New Myth or Science? (‘Happy workers means happy profits’)
• New feature! Personal Inventory Assessments (Core self-evaluation (CSE) scale)
• Updated Point/Counterpoint (Employer–employee loyalty is an outdated concept)
• New Case Study ( Job crafting)
Chapter 4.  Personality and values
• New opening vignette (Aligning individual and organisational values in a police service)
• New feature! Personal Inventory Assessments (Are you a Type A personality?)
• Major new section (The Dark Triad)
• Updated section on other personality traits related to OB
• New Myth or Science? (‘We can accurately judge individuals’ personalities a few seconds after
meeting them’)
• New research and discussion on proactive personality
• Major new section (Personality and situations)
• New Globalisation (Is the personality profile of an entrepreneur the same across different
countries?)
• New OB in Practice (Dealing with issues of personality in the workplace)
• Updated discussion on terminal and instrumental values
• New Ethical Choice (Do you have a cheating personality?)
• Updated Point/Counterpoint (Millennials are more narcissistic)
• New Experiential Exercise (Generational values and ‘staying put’)
• New Case Study (The power of quiet)
Chapter 5.  Emotions and moods
• New opening vignette (Affective computing: reading your mind)
• New Myth or Science? (‘Smile, and the work world smiles with you’)
• New research and discussion on the role of emotions in ethical decisions
• New research on gender and emotions
• New OB in Practice (How leaders can influence emotions in the workplace)
• New Ethical Choice (Should managers use emotional intelligence (EI) tests?)
• New feature! Personal Inventory Assessments (Emotional intelligence assessment)
• Major new section (Emotion regulation)
• New research and discussion on transformational leadership and emotional display
• New research and discussion on anger and workplace outcomes
• New Globalisation (Creating highly productive teams across the cultural emotional barrier)
• New Point/Counterpoint (Sometimes blowing your top is a good thing)
• Updated Experiential Exercise (Who can catch a liar?)
• Updated Case Study (Can you read emotions from faces?)
Chapter 6.  Perception and individual decision making
• New opening vignette (The price tag for creativity: $30 million. The return: priceless)
• New Globalisation (Does multicultural experience make for better decisions?)
• New OB in Practice (The perceptive coach)
• New Myth or Science? (‘All stereotypes are negative’)
• New Ethical Choice (Choosing to lie)
• Updated section on improving creativity in decision making
• New feature! Personal Inventory Assessments (Creativity scale)
• New Point/Counterpoint (Stereotypes are dying)
• New Case Study (The youngest billionaire)
Chapter 7.  Motivation: from concept to application
• New opening vignette (Telecommuting? No. Extra maternity leave? Yes)
• New Myth or Science? (‘Money can’t buy happiness’)
• New feature! Personal Inventory Assessments (Work motivation indicator)
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• New Globalisation (Outcry over executive pay is heard everywhere)

• New OB in Practice (Good leaders help create motivating workplaces)
• New Ethical Choice (Sweatshops and worker safety)
• New Point/Counterpoint (‘Face-time’ matters)
• New Case Study (Equity and executive pay)
Chapter 8.  Foundations of group behaviour
• New opening vignette (Teamwork and hard Aussie rock)
• New OB in Practice (Building a culture of constructive feedback)
• New research and discussion on deviant workplace behaviour
• New feature! Personal Inventory Assessments (Communicating supportively)
• New Globalisation (Making global virtual teams effective)
• Updated Myth or Science? (‘US workers are more biased than Asians’)
• Updated Ethical Choice (Using peer pressure as an influence tactic)
• New Point/Counterpoint (People are more creative when they work alone)
Chapter 9.  Understanding work teams
• New opening vignette (The challenge of working with executive teams)
• New OB in Practice (Discussing the popularity of a leader)
• Major new section on multi-team systems
• New Globalisation (Developing team members’ trust across cultures)
• New Myth or Science? (‘Team members who are “hot” should make the play’)
• New feature! Personal Inventory Assessments (Team development behaviours)
• Updated Ethical Choice (Virtual teams leave a smaller carbon footprint)
• Review of research on team decision-making strategies
• New Point/Counterpoint (To get the most out of teams, empower them)
• New Experiential Exercise (Composing the ‘perfect’ team)
• New Case Study (Tongue-tied in teams)
Chapter 10.  Communication
• New opening vignette (Do you suffer from communication incompatibility?)
• Updated section on oral communication
• Updated section on written communication, including social media, instant messaging and
text messaging
• New feature! Personal Inventory Assessments (Communication styles)
• New OB in Practice (The value of the message)
• New Ethical Choice (Using employees in organisational social media strategy)
• New research and discussion on choosing communication methods
• New Myth or Science? (‘Today, writing skills are more important than speaking skills’)
• New Globalisation (Multinational firms adopt English as global language strategy)
• New Point/Counterpoint (Social media presence)
• Updated Case Study (Using social media to your advantage)
Chapter 11.  Leadership
• New opening vignette (Developing critical relationships at Brisbane Airport Corporation)
• New Globalisation (Leaders broaden their span of control in multinational organisations)
• New feature! Personal Inventory Assessments (Ethical leadership assessment)
• New research on authentic leadership
• Major new section on ethical leadership
• New Ethical Choice (Holding leaders ethically accountable)
• New research on trust as a process
• New research on mentoring
• New Myth or Science? (‘Top leaders feel the most stress’)
• New discussion on selecting and training leaders
• New OB in Practice (What influence do you exert as a leader?)
• Updated Point/Counterpoint (Heroes are made, not born)
• New Experiential Exercise (What is a leader?)
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Chapter 12.  Power and politics

• New opening vignette (From power to prison)
• New Globalisation (Power, gender and sexual harassment in France)
• New research and discussion on sexual harassment
• New OB in Practice (How power affects people)
• New Myth or Science? (‘Powerful leaders keep their (fr)enemies close’)
• New feature! Personal Inventory Assessments (Gaining power and influence)
• New Point/Counterpoint (Everyone wants power)
• New Case Study (Barry’s peer becomes his boss)
Chapter 13.  Conflict and negotiation
• New opening vignette (A change of tune)
• Major new section on types and loci of conflict
• New OB in Practice (Tips for managing family conflicts in business)
• New Myth or Science? (‘Teams negotiate better than individuals in collectivistic cultures’)
• New Globalisation (Trust is an issue)
• New Ethical Choice (Using empathy to negotiate more ethically)
• New feature! Personal Inventory Assessments (Strategies for handling conflict)
• New Case Study (Choosing your battles)
Chapter 14.  Foundations of organisational structure
• New opening vignette (Heard but not seen—the virtual assistant)
• Discussion on the latest trends in job specialisation
• New OB in Practice (Unleashing the constraints of structure)
• New research and discussion on centralisation/decentralisation
• New Ethical Choice (Ethical concerns of deskless workplaces)
• New Globalisation (The world is my corporate headquarters)
• New feature! Personal Inventory Assessments (Organisational structure assessment)
• New Myth or Science? (‘Employees can work just as well from home’)
• New Point/Counterpoint (The end of management)
• New Case Study (Boeing Dreamliner: engineering nightmare or organisational disaster?)
Chapter 15.  Organisational culture
• New opening vignette (Two cases of culture in action)
• Major new section on the ethical dimension of culture
• Major new section on culture and innovation
• New Globalisation (Creating a multinational organisational culture)
• New Myth or Science? (‘An organisation’s culture is forever’)
• New research on keeping a culture alive
• New OB in Practice (Dealing with a toxic culture in hospitals)
• New Ethical Choice (A culture of compassion)
• New research and discussion on global implications
• New feature! Personal Inventory Assessments (Comfort with change scale)
• Updated Case Study (Mergers don’t always lead to culture clashes)
Chapter 16.  Organisational change and stress management
• New opening vignette (One accounting firm’s response to changing client needs)
• New research on forces for change
• New Globalisation (The state of perpetual change: globalisation)
• New OB in Practice (Can coaches really help in times of change?)
• Major new section on organisational change and stress
• New research on work stress and its management
• New Myth or Science? (‘When you’re working hard, sleep is optional’)
• New Ethical Choice (Manager and employee stress during organisational change)
• New feature! Personal Inventory Assessments (Tolerance of ambiguity scale)
• New Experiential Exercise (Strategising change)
• New Case Study (When companies fail to change)
\ xvii
 PREFACE

Resources for educators and students

Additional material has been developed for both educators and students and is designed to
complement the textbook.

MYMANAGEMENTLAB FOR ROBBINS/JUDGE/MILLETT/BOYLE

ORGANISATIONAL BEHAVIOUR, EIGHTH EDITION

THE POWER OF PRACTICE.

MyManagementLab creates the perfect pedagogical loop that provides not only text-specific
assessment and practice problems, but also tutorial support to make sure students learn from their
mistakes.

STUDY PLAN: A study plan is generated

from each student’s results on a pre-test.
Students can clearly see which topics they
have mastered and, more importantly, which
they need to work on.

UNLIMITED PRACTICE: MyManagementLab

comes with pre-loaded assignments covering
in-chapter content, all of which are automatically
graded, to ensure students get as much practice as
they need.

xviii /
 PREFACE

MYMANAGEMENTLAB WWW.PEARSON.COM.AU/ROBBINS8

LEARNING RESOURCES: The following

links to additional learning resources are
incorporated into the Study Plan:
• the relevant section of the eText, so
students can review key concepts
• videos which demonstrate real-world
management scenarios
• simulations which enable students to
practice making real-world decisions in a
safe environment.

ASSIGNABLE CONTENT: Educators can select

content from the Study Plan, Multimedia, Personal
Inventory Assessments and/or Test Bank and
assign to students as homework or quizzes.

\ xix
 PREFACE

PERSONAL INVENTORY ASSESSMENTS (PIA)

Students learn better when they can connect what they’re learning to their personal experience.
PIA (Personal Inventory Assessments) is a collection of online exercises designed to promote self-
reflection and student engagement, enhancing students’ ability to connect with concepts taught
in principles of management, organisational behaviour and human resource management classes.
Assessments are assignable by instructors who can then track student completion.

Educator resources
A suite of resources is provided to assist with delivery of the text, as well as to support teaching
and learning.

SOLUTIONS MANUAL
The Solutions Manual provides educators with detailed, accuracy-verified solutions to the end-of-
chapter problems in the book.

TEST BANK
The Test Bank provides a wealth of accuracy-verified testing material. Updated for this new edition,
each chapter offers a wide variety of question types arranged by learning objective and tagged
by AACSB standards. Each Test Bank question can also be assigned to students and auto-graded
through MyManagementLab.
POWERPOINT LECTURE SLIDES
A comprehensive set of PowerPoint slides can be used by educators for class presentations or by
students for lecture preview or review. They include key figures and tables, as well as a summary of
key concepts and examples from the text.
DIGITAL IMAGE POWERPOINT SLIDES
All the diagrams and tables from the text are available for lecturer use in chapter-based PowerPoint
slides.

xx /
Guided tour
ChaPter Teamwork and hard aussie rock

8
The Easybeats were a popular rock band in the 1960s, and the
first Australian band to score an international hit with ‘Friday

Foundations of
on My Mind’. Formed in 1964, the band lasted only five years
before financial disputes and internal rifts caused it to disband.
Another Australian rock band, AC/DC, has become one of
the most successful bands of all time, with a career spanning

group behaviour
more than 40 years. Clearly, many bands don’t last that long in
the limelight, so what has held this group together for so long?
Has teamwork got anything to do with succeeding in the music
business?
While there have been changes to the membership of
AC/DC, the group that has been central to its longevity is the
A tribe is a group of people connected to one another, Young family. A close-knit family of eight children, the Youngs
emigrated to Australia from Scotland in 1963. Two of the
connected to a leader, and connected to an idea. For Youngs, Malcolm and Angus, became guitarists in the band. A third, George, has played a
source © sergione
infuso/Demotix/Corbis.
millions of years, human beings have been part of one tribe significant role in the band’s development and management. George first rose to stardom
or another. A group needs only two things to be a tribe: a as the rhythm guitarist of the Easybeats. According to Jesse Fink, author of The Youngs: The
Brothers Who Built AC/DC, George’s early disappointing experience with the business side
shared interest and a way to communicate. of the music industry is one of the reasons AC/DC has remained so private and self-reliant.
Seth Godin The family business at the heart of AC/DC has helped it become the most consistent brand
in rock and roll. A recent study found that businesses based on strong family influences, such
as AC/DC, are, as a general rule, less likely to innovate. Family influence leads businesses to
make choices based on non-economic considerations, and family dynamics often override
business considerations. Family influence also reinforces emotional ties to the status quo.
Learning ObjeCtives AC/DC has never strayed far from its familiar brand of hard rock, and their success
appears to contradict the innovate-or-die approach to business. Says Fink: ‘The key business
After studying this chapter, you should be able to: lesson from AC/DC is that if you do something well, stick with it. . . . AC/DC don’t force
1. Define group and differentiate between different types of groups. experimental new songs on their audience. They give them what they want. And they do it
exceptionally well.’ Fink believes few musicians could continue to please their fans with a
2. Identify the five stages of group development.
steady supply of new songs while staying within such narrow musical parameters. Angus
3. Show how role requirements change in different situations. Young, AC/DC’s lead guitarist, puts it this way: ‘We’ve got the basic thing kids want. They
4. Demonstrate how norms and status exert influence on an individual’s want to rock and that’s it. When you hit a guitar chord, a lot of the kids in the audience are
hitting it with you. . . . They’re so much into the band they’re going through all the motions
behaviour.
with you.’
5. Show how status and size differences affect group performance. The Young brothers’ appearance on the Business Review Weekly’s ‘Rich Families’ list shouldn’t
6. Describe how issues of cohesiveness and diversity can be integrated come as a surprise: AC/DC are easily one of the world’s biggest-selling bands, with over 200
for group effectiveness. million albums sold, including more than 22 million copies of 1980’s  Back in Black—the
second-highest selling album of all time (behind Michael Jackson’s Thriller). In the cut-throat
7. Contrast the strengths and weaknesses of group decision making. music industry, the three Young brothers are a powerful and enduring team.
SOURCES: R. Blatt, ‘Why being a family business made AC/DC the most consistent brand in rock n roll’, Forbes, 30 April
2014; J. Michaud, ‘The brothers who built AC/DC’, 2 December 2014, The New Yorker; and A. Newstead, ‘The richest
rock music group in Australia proves money talks’, Tonedeaf, 31 July 2013.

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CHAPTER LEARNING VIGNETTES open each Part 3 The group

OBJECTIVES make learning chapter with a case example attitudes and leads those who feel harassed to withdraw from the organisation. In many cases,
reporting sexual harassment doesn’t improve the situation, because the organisation responds in a
negative or unhelpful way. When organisational leaders make honest efforts to stop the harassment,
more efficient. Each chapter about an individual or an sexual harassment
the outcomes are much more positive.32
Sexual harassment is defined as any unwanted activity of a sexual nature that affects an
Any unwanted activity of a

opens with a list of learning

individual’s employment and creates a hostile work environment. Under Australian federal
organisation relating to sexual nature that affects
an individual’s employment
and creates a hostile work
legislation, sexual harassment is defined as ‘an unwelcome sexual advance, unwelcome request for
sexual favours or other unwelcome conduct of a sexual nature which makes a person feel offended,

objectives that describe what

humiliated, or intimidated, and where that reaction is reasonable in the circumstances’.33 But
the particular content in environment.
disagreement continues about what specifically constitutes sexual harassment. Organisations have
generally made progress in the past decade towards limiting overt forms of sexual harassment.

you should be able to do

This includes unwanted physical touching, recurring requests for dates when it is made clear that
that chapter. The featured
after studying the chapter. individuals or organisations how power affects people
oB in PrActice

These objectives are designed come from a broad spectrum

There are corrupting aspects of power. Evidence suggests that power leads people to place their own
interests ahead of those of others. Why does this happen? Interestingly, research suggests that power
not only leads people to focus on their self-interests because they can; it also liberates people to focus

to focus your attention on and each example is selected

inward, and thus come to place greater weight on their goals and interests. Power also appears to lead
individuals to see themselves as tools to obtain their instrumental goals, to value relations with people
with less power, and to see relationships as more peripheral.

the major issues within each specifically to help you link

That’s not all. Powerful people react—especially negatively—to any threats to their competence.
They’re more willing to denigrate others. People given power are more likely to make self-interested
decisions when faced with a moral hazard (such as when hedge fund managers take more risks with

chapter. OB concepts to OB practice.

other people’s money because they’re rewarded for gains but less often punished for losses). Power also
leads to overconfident decision making.
Frank Lloyd Wright, a well-known American architect, is a good example of power’s corrupting effects.
Early in his career, Wright worked for and was mentored by a renowned architect, Louis Sullivan. Before
he achieved greatness, Wright was copious in his praise for Sullivan. Later in his career, that praise faded,
and Wright even took credit for one of Sullivan’s noted designs. Wright was never a benevolent man, but
as his power accumulated, so did his potential to behave in a ‘monstrous’ way towards others.
So, yes, power does appear to have some important disturbing effects on us. But that is hardly the
whole story—it’s more complicated than that. Power doesn’t affect everyone in the same way, and there
are even positive effects of power. Let’s consider each of these in turn. First, the toxic effects of power
depend on one’s personality. Research suggests that if we have an anxious personality, power doesn’t
corrupt us because we are less likely to think that using power benefits us. Second, the corrosive effect
of power can be contained by organisational systems. One study found, for example, that while power
made people behave in a self-serving manner, when accountability of this behaviour was initiated, the
self-serving behaviour stopped. Third, we have the power to blunt the negative effects of power. One
study showed that simply expressing gratitude towards powerful others made them less likely to aggress
against us. Finally, remember the aphorism that those with little power grab and abuse what little they
have? There appears to be some truth to this in that the people most likely to abuse power are those who
are low in status and gain power. Why is this the case? It appears that having low status is threatening,
and this fear is used in negative ways if power is given.

SOURCES: Y. Cho and N. J. Fast, ‘Power, defensive denigration, and the assuaging effect of gratitude expression’, Journal of Experimental
Social Psychology 48, 2012, pp. 778–82; M. Pitesa and S. Thau, ‘Masters of the universe: how power and accountability influence self-serving
decisions under moral hazard’, Journal of Applied Psychology 98, 2013, pp. 550–8; N. J. Fast, N. Sivanathan, D. D. Mayer and A. D. Galinsky,
‘Power and overconfident decision-making’, Organizational Behavior and Human Decision Processes 117, 2012, pp. 249–60; A. Grant, ‘Yes, power
corrupts, but power also reveals’, Government Executive, 23 May 2013; J. K. Maner, M. T. Gaillot, A. J. Menzel and J. W. Kunstman, ‘Dispositional

OB IN PRACTICE boxes look at current issues in OB and put anxiety blocks the psychological effects of power’, Personality and Social Psychology Bulletin 38, 2012, pp. 1383–95; and N. J. Fast, N. Halevy
and A. D. Galinsky, ‘The destructive nature of power without status’, Journal of Experimental Social Psychology 48, 2012, pp. 391–4.

forward the differing points of view that surround an issue. 330 /

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 GUIDED TOUR

What is organisational behaviour? Chapter 1

The LEARNING OBJECTIVE is repeated in the margin where the
Complementing intuition with systematic study 4 Show the value to OB
of systematic study.
relevant text appears in the chapter.
Each of us is a student of behaviour. Whether you have explicitly thought about it before, you
have been ‘reading’ people almost all your life, watching their actions and trying to interpret what
you see or to predict what people might do under different conditions. Unfortunately, the casual or
common-sense approach to reading others can often lead to erroneous predictions. However, you
can improve your predictive ability by supplementing intuition with a more systematic approach.
Following the systematic approach presented in this book will enable you to uncover important
facts and relationships, and provides a base from which to make more accurate predictions of
behaviour. Underlying this systematic approach is the belief that behaviour is not random. Rather,
we can identify fundamental consistencies underlying the behaviour of all individuals and modify
them to reflect individual differences. MYTH OR SCIENCE? boxes present a commonly accepted ‘fact’
These fundamental consistencies are very important. Why? Because they allow predictability.
Behaviour is generally predictable, and the systematic study of behaviour is a means to making
about human behaviour, followed by confirming or disproving
‘Management by walking around is the most effective management’
MYTH OR
research evidence. These sections help you to see how the field
This statement is mostly false, but with a caveat. Management by walking around (MBWA) is an
organisational principle made famous with the 1982 publication of In Search of Excellence and based
upon a 1970s’ initiative by Hewlett-Packard—in other words, it’s a dinosaur. But the idea of requiring
SCienCe? of OB, built on a large body of research evidence, can provide
managers at all levels of the organisation to wander around their departments to observe, converse
with and hear from employees continues as a common business practice. Many companies that expect valuable insights into human behaviour at work.
managers and executives to do regular ‘floor time’ have claimed benefits ranging from employee
engagement to deeper management understanding of company issues. While MBWA sounds helpful,
though, it is not a panacea. The limitations of MBWA are threefold: available hours, focus and application.
1. Available hours. Managers are tasked with planning, organising, coordinating and controlling, yet even
CEOs—the managers who should be the most in control of their time—report that 53% of their average
55-hour workweek is spent in meetings. We’ve yet to see a meeting conducted while touring the plant!
2. Focus. MBWA turns management’s focus towards the concerns of employees. This is good, but
only to a degree. As noted by Jeff Weiner, CEO of LinkedIn, this is a problem. ‘Part of the key to
time management is carving out time to think, as opposed to constantly reacting. And during that
The KEY TERMS are highlighted in bold print when they first
appear and are defined in the adjoining margin. The terms are
thinking time, you’re not only thinking strategically, thinking proactively, thinking longer-term, but
you’re literally thinking about what is urgent versus important.’ Weiner and other CEOs argue that
meetings distract them from their purpose, especially internal company interactions.
3. Application. The principle behind MBWA is that the more managers know their employees, the more
effective those managers will be. This isn’t always (or even often) true. As we’ll learn in Chapter 6, also grouped together at the end of the book in the Glossary.
knowing (or thinking you know) something shouldn’t always lead us to act on only that information.
For example, a 30-minute test conducted recently to determine personality traits and reactions to
scenarios resulted in a 20% reduction in attrition for a Xerox call centre, even though managers
had previously been diligent in seeking information on candidates through interviews. There is no
substitute for good, objective data.
Based on the need for managers to dedicate their efforts to administering and growing businesses,
and given the proven effectiveness of objective performance measures, it seems the time for MBWA is
gone. Yet, there is one caveat. We certainly don’t argue that managers should refrain from knowing their
employees, or that a stroll around the work floor is a bad idea. Rather, we find the regular, intentional Part 3 The group
interactions of MBWA do not, in themselves, make an effective management tool. A more recent review of 160 studies found that the followers of leaders high in consideration
were more satisfied with their jobs, were more motivated and had more respect for their leader.
SOURCES: H. Mintzberg, ‘The manager’s job’, Harvard Business Review, March–April 1990, pp. 1–13; R. E. Silverman, ‘Where’s the boss? Trapped
in a meeting’, The Wall Street Journal, 14 February 2012, pp. B1, B9; and J. Walker, ‘Meet the new boss: big data’, The Wall Street Journal, 20
Initiating structure was more strongly related to higher levels of group and organisation productivity
September 2012, p. B1. and more positive performance evaluations.
Some research from the Global Leadership and Organizational Behavior Effectiveness
\9 (GLOBE) study suggests there are international differences in preference for initiating structure
and consideration.15 Based on the values of Brazilian employees, an Australian manager leading
a team in Brazil would need to be team-oriented, participative and humane. Leaders high in
consideration would succeed best in this culture. As one Brazilian manager said in the GLOBE
M01_ROBB9329_08_LT_C01.indd 9 4/18/16 4:36 PM
study: ‘We do not prefer leaders who take self-governing decisions and act alone without engaging
the group. That’s part of who we are.’ Compared to Australian employees, the French have a more
bureaucratic view of leaders and are less likely to expect leaders to be humane and considerate. A
leader high in initiating structure (relatively task-oriented) will do best in this culture, and can make
decisions in a relatively autocratic manner. A manager who scores high on consideration (people-
oriented) may find that style backfiring in France. According to the GLOBE study, Chinese culture
emphasises being polite, considerate and unselfish, but it also has a high performance orientation.
Thus, consideration and initiating structure may both be important to succeed in that culture.
Summary of trait theorieS and behavioural theorieS
Leaders who have certain traits and who display consideration and structuring behaviours do appear
to  be more effective. Perhaps you’re wondering whether conscientious leaders (trait) are more
likely to be structuring (behaviour), and extraverted leaders (trait) are more likely to be considerate
(behaviour). Unfortunately, it is not known if there is a connection. Future research is needed to
integrate these approaches.
Some leaders may have the right traits or display the right behaviours and still fail. As important
as traits and behaviours are in identifying effective or ineffective leaders, they do not guarantee
success. The context matters, too.

4 Assess contingency
theories of leadership
contingency theories
by their level of Some tough-minded leaders seem to gain a lot of admirers when they take over struggling companies
support.
and help lead them out of the doldrums.
Predicting leadership success is more complex than isolating a few traits or behaviours. What
worked in very bad times and in very good times for some leaders doesn’t seem to translate into
long-term success. The failure by researchers in the mid-20th century to obtain consistent results
led to a focus on situational influences. The relationship between leadership style and effectiveness
suggested that, under condition a, style x would be appropriate, whereas style y was more suitable
Foundations of organisational structure ChaPter 14
for condition b, and style z for condition c. But what were conditions a, b, c? It was one thing to say
Fiedler contingency
Companies can reduce negative impacts by preparing for the post-downsizing environment that leadership effectiveness depends on them and another to be able to identify them.
model The theory that
in advance, thus alleviating some employee stress and strengthening support for the new strategic effective groups depend on
direction.33 Here are some effective strategies for downsizing, and suggestions for implementing the fiedler model
a proper match between a
them. Most are closely linked to the principles of organisational justice discussed in Chapter 7. leader’s style of interacting The first comprehensive contingency model for leadership was developed by Fred Fiedler.16 The
with subordinates and the Fiedler contingency model proposes that effective group performance depends on the proper
• Investment. Companies that downsize to focus on core competencies are more effective when match between the leader’s style and the degree to which the situation gives the leader control.
degree to which the situation
they invest in high-involvement work practices afterwards. gives control and influence to
• Communication. When employers make efforts to discuss downsizing with employees early on in the leader. Identifying leadership style
the process, employees are less worried about the outcomes and feel that the company is taking Fiedler believes that a key factor in leadership success is the individual’s basic leadership style. He
least preferred
their perspective into account. created the least preferred co-worker (LPC) questionnaire to identify that style by measuring
co-worker (lPc)
questionnaire
whether a person is task-oriented or relationship-oriented. The LPC questionnaire asks respondents
• Participation. Employees worry less if they can participate in the process in some way. In some to think of all the colleagues they have ever had and describe the one person they least enjoyed working
An instrument that purports
companies, voluntary early retirement programs or severance packages can help achieve leanness with by rating that person on a scale of 1 to 8 for each of 16 sets of contrasting adjectives (such
to measure whether a person
without lay-offs. is task- or relationship- as pleasant–unpleasant, efficient–inefficient, open–guarded, supportive–hostile). If you describe the
• Assistance. Providing severance, extended healthcare benefits and job search assistance oriented. person you are least able to work with in favourable terms (a high LPC score), Fiedler would label you
demonstrates that a company does care about its employees and honours their contribution.
290 /
Companies that make themselves lean can be more agile, efficient and productive, but only if
they make cuts carefully and help employees through the process.

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Personal Inventory assessments

Organisational Structure Assessment
To learn more about how organisations are structured, complete this PIA.

4 Demonstrate how
organisational
Why do structures differ? structures differ, and
contrast mechanistic
and organic structural

PERSONAL INVENTORY ASSESSMENTS

We have described organisational designs ranging from the highly structured bureaucracy to the
models.
amorphous boundaryless organisation. The other designs we discussed exist somewhere between
these extremes.
Exhibit 14.7 (on the next page) recaps the discussions by presenting two extreme models of
organisational design. One we call the mechanistic model. This model is generally synonymous mechanistic model
A structure characterised
(PIA) are online exercises which help you to
with the bureaucracy in that it has highly standardised processes for work, high formalisation and
more managerial hierarchy. The other extreme, the organic model, looks a lot like the boundaryless
organisation. It is flat, has fewer formal procedures for making decisions, has multiple decision makers
by extensive
departmentalisation, high
formalisation, a limited
connect what you’re learning to your personal
and favours flexible practices.34
With these two models in mind, let’s ask a few questions: Why are some organisations structured
along more mechanistic lines whereas others follow organic characteristics? What forces influence
information network and
centralisation. experience. They are designed to provide you with insight
into your strengths and weaknesses, helping you to become a
the choice of design? Below, we discuss the major causes or determinants of an organisation’s
organic model
structure.35
A structure that is flat, uses
strateGy cross-hierarchical and

Structure is a means to achieve objectives, and objectives derive from the organisation’s overall
strategy, so it’s only logical that strategy and structure should be closely linked. In fact, structure
cross-functional teams, has
low formalisation, possesses
a comprehensive information
better manager.
should follow strategy. If management significantly changes the organisation’s strategy, the network and relies on
structure  must change to accommodate it.36 Most current strategy frameworks focus on three participative decision making.
strategy dimensions—innovation, cost-minimisation and imitation—and the structural design that
works best with each.37 innovation strategy
To what degree does an organisation introduce major new products or services? An innovation A strategy that emphasises
strategy strives to achieve meaningful and unique innovations. Obviously, not all organisations the introduction of major new
pursue innovation. 3M and Apple do, but conservative retailer Myer does not. Innovative products and services.

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xxii /
 GUIDED TOUR

Part 2 The individual

EI is biologically based
In one study, people with damage to the brain area that governs emotional processing (part of the
prefrontal cortex) scored no lower on standard measures of intelligence than people without similar
damage. Nevertheless, they scored significantly lower on EI tests and were impaired in normal
ETHICAL CHOICE boxes are based on real business scenarios decision making. This study suggests that EI is neurologically based in a way that’s unrelated to
standard measures of intelligence.75 There is also evidence that EI is genetically influenced, further
supporting the idea that it measures a real underlying biological factor.76
and situations that have posed an ethical dilemma. The case againsT ei
For all its supporters, EI has just as many critics who say it is vague and impossible to measure, and
they question its validity.

EI researchers don’t agree on definitions

To many researchers, it’s not clear what EI is because researchers use different definitions of it.77
Some have focused on tests with right and wrong answers from which we can infer someone’s ability

should managers use emotional intelligence (ei) tests?

EtHicAl As we discussed in this chapter, the concept of emotional intelligence has raised some debate. One
cHoicE of the topic questions for managers is whether to use EI tests in the selection process. Here are some
ethical considerations:
• There is no commonly accepted test. For instance, researchers have recently used the Mayer–Salovey–
Caruso Emotional Intelligence Test (MSCEIT), the Trait Emotional Intelligence Questionnaire and the
newly developed Situational Judgment Test of Emotional Intelligence (SJT of EI) in studies. Researchers
believe EI tests may need to be culturally specific because emotional displays vary by culture; thus, the
interpretation of emotional cues differs. A recent study in India comparing the emotional intelligence

GLOBALISATION boxes enlighten students on international scores for Indian and North American executives using the Emotional Competence Inventory (ECI-2)
test found the results similar but not the same, suggesting the need for modification.
• Applicants may react negatively to taking an EI test in general, or to parts of it. The face recognition

OB practice. test, for example, may seem culturally biased to some if the subject photos are not diverse. Also,
participants who score high on EI tests tend to consider them fair; applicants who score lower may
not perceive the tests to be fair and can thus consider the hiring organisations unfavourably—even
if they score well on other assessments.
• EI tests may not be predictive of performance for all types of jobs. In a study of 600 Romanian
participants, results indicated that EI was valid for salespeople, public servants and CEOs of public
hospitals, but these were all roles requiring significant social interaction. EI tests may need to be
tailored for each position category or not be used when the position description doesn’t warrant its use.
• It remains somewhat unclear what EI tests are actually measuring. They may reflect personality or
intelligence, in which case other measures might be better.
• There isn’t enough research on how emotional intelligence affects, for instance, counterproductive
work behaviours. It may not be prudent to test and select applicants who are rated high on EI when
we aren’t yet certain that everything about EI leads to desired workplace outcomes.

These concerns suggest EI tests should be avoided in hiring decisions. However, because research
Part 2 The individual has indicated that emotional intelligence does predict job performance to some degree, managers should
not be too hasty to dismiss the tests. Rather, those wishing to use EI in hiring decisions should be aware
of these issues in order to make informed and ethical decisions about not only whom to hire, but how.
is the personality profile of an entrepreneur the same across
gloBAlisAtion

different countries? SOURCES: D. Iliescu, A. Ilie, D. Ispas and A. Ion, ‘Emotional intelligence in personnel selection: applicant reactions, criterion, and incremental
validity’, International Journal of Selection and Assessment, September 2012, pp. 347–58; R. Sharma, ‘Measuring social and emotional
intelligence competencies in the Indian context’, Cross Cultural Management 19, 2012, pp. 30–47; and S. Sharma, M. Gangopadhyay, E. Austin
What is an entrepreneurial personality? Recent research has provided some answers, and some and M. K. Mandal, ‘Development and validation of a situational judgment test of emotional intelligence’, International Journal of Selection and
Assessment, March 2013, pp. 57–73.
interesting insights into how well this profile translates across regions and countries. The personality
profile of an entrepreneur is well represented in one study by a constellation of the Big Five traits, with 118 /
high scores on extraversion, conscientiousness and openness, and low scores on agreeableness and
neuroticism.
Another recent study suggests there are more differences within than between countries on the
entrepreneurial personality. This study constructed a personality profile of the entrepreneurial personality M05_ROBB8786_08_LT_C05.indd 118 3/17/16 6:19 PM
from the Big Five traits and then analysed large samples of individuals from the United States, the
United Kingdom and Germany.
In Germany, individuals in Berlin and Hamburg scored the highest on the entrepreneurial personality
profile. In the United Kingdom, East England and London scored highest. In the United States, there were
differences across both cities and states. Of the 15 largest US cities, Miami–Fort Lauderdale, Seattle–
Tacoma and Atlanta scored highest on the entrepreneurial personality profile. Among the states, Colorado,
Utah and the District of Columbia scored highest.
Within each country, the study found that the entrepreneurial personality profile correlated with
the region’s or city’s level of entrepreneurial activity, as measured by the percentage of the population
trying to start new businesses, the proportion of businesses less than 3.5 years old and the number of
individuals who were self-employed. These results suggest there is an entrepreneurial personality profile;
it correlates with actual entrepreneurial activity across countries; and within each country, regional and
metropolitan differences exist in both the personality profile and entrepreneurial activity.
Of course, one limitation of these three studies is their Western locations. It would be interesting to
see whether the same pattern holds in India and China.

SOURCE: Based on M. Obschonka, E. Schmitt-Rodermund, R. K. Silbereisen, S. D. Gosling and J. Potter, ‘The regional distribution and correlates
of an entrepreneurship-prone personality profile in the United States, Germany, and the United Kingdom: a socioecological perspective’, Journal
of Personality and Social Psychology 105, no. 1, 2013, pp. 104–22.

5 Define values,
demonstrate the values
importance of values,
and contrast terminal
Is capital punishment right or wrong? If a person enjoys being powerful, is that good or bad?
and instrumental The answers to these questions are value-laden. Some might argue that capital punishment is right
values. because it is the right punishment for crimes such as murder and treason. Others might argue, just
as strongly, that no government has the right to take anyone’s life.
Values represent basic convictions that ‘a specific mode of conduct or end-state of existence
is personally or socially preferable to an opposite or a converse mode of conduct or end-state of Emotions and moods chapter 5
values Basic convictions
existence’.61 They contain a judgmental element in that they carry an individual’s ideas as to what
that a specific mode of
conduct or end-state of
is right, good or desirable. Values have both content and intensity attributes. The content attribute
existence is personally or
socially preferable to an
says that a mode of conduct or end-state of existence is important. The intensity attribute specifies
how important it is. When we rank an individual’s values in terms of their intensity, we obtain that Summary
opposite or a converse mode person’s value system. All of us have a hierarchy of values that forms our value system. We find Emotions and moods are similar in that both are affective in nature. But they are also different—moods
of conduct or end-state of it in the relative importance we assign to values such as freedom, pleasure, self-respect, honesty, are more general and less contextual than emotions. And events do matter. The time of day and day
existence. obedience and equality. of the week, stressful events, social activities and sleep patterns are some of the factors that influence
value system Are values fluid and flexible? Generally speaking, no. They tend to be relatively stable and emotions and moods. Emotions and moods have proven relevant for virtually every OB topic we study,
A hierarchy based on a enduring.62 A significant portion of the values we hold is established in our early years—by parents, and they have implications for managerial practice.
ranking of an individual’s teachers, friends and others. As children, we are told that certain behaviours or outcomes are always
values in terms of their desirable or always undesirable, with few grey areas. You were never taught to be just a little bit
intensity. honest or a little bit responsible, for example. It is this absolute, or ‘black-or-white’, learning of
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implications for managers
• To foster effective decision making, creativity and motivation in employees, model positive
emotions and moods as much as is authentically possible.
M04_ROBB9329_08_LT_C04.indd 88 3/18/16 1:07 PM • Provide positive feedback to increase the positivity of employees.
• In the service sector, encourage positive displays of emotion, which make customers feel more
positive and thus improve customer service interactions and negotiations.
• Regulate your intense emotional responses to an event by recognising the legitimacy of the
emotion and being careful to vent only to a supportive listener who isn’t involved in the event.
• Be careful not to ignore co-workers’ and employees’ emotions; don’t assess others’ behaviour as
if it were completely rational. As one consultant aptly put it, ‘You can’t divorce emotions from the
workplace because you can’t divorce emotions from people.’133 Managers who understand the
role of emotions and moods will significantly improve their ability to explain and predict their
co-workers’ and employees’ behaviour.

SUMMARY AND IMPLICATIONS FOR MANAGERS sections

offer a concise summary of the key themes in each chapter.

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