MANAGEMENT & ORGANISATIONAL BEHAVIOUR

Transcription

1 A01_MULL4087_09_SE_FM.QXD 24/02/10 17:16 Page i MANAGEMENT & ORGANISATIONAL BEHAVIOUR INSTANT ACCESS TO INTERACTIVE LEARNING With your purchase of a new copy of this textbook, you received a Student Access Kit to MyLab for & Organisational Behaviour, Ninth Edition, by Laurie J. Mullins. MyLab gives you access to an unrivalled suite of online resources. It provides a variety of tools to enable you to assess and progress your own learning, including questions, tests and learning aids for each chapter of the book. You will benefit from a personalised learning experience, where you can: Complete a diagnostic pre-test to generate your own Study Plan, which adapts to your strengths and weaknesses and enables you to focus on the topics where your knowledge is weaker. Improve your understanding through a variety of practice activities that match the chapters of & Organisational Behaviour. Measure your progress with a follow-up post-test that ensures you have mastered key learning objectives and gives you the confidence to move on to the next chapter. Study on the go and refer to pages from an e-book version of this text. Watch and learn from a wealth of video clips and case studies and analyse how top managers at a wide range of organisations talk about real life situations that relate to management and organisational behaviour. Revise by listening to audio summaries of the key concepts in each chapter. Check your understanding using a comprehensive glossary of key terms, with flashcards to check your knowledge. See the Guided Tour of MyLab on page xxv for more details. To activate your pre-paid subscription go to Follow the instructions on-screen to register as a new user and see your grades improve!

2 A01_MULL4087_09_SE_FM.QXD 24/02/10 17:16 Page ii About the author Laurie Mullins was formerly principal lecturer at the University of Portsmouth Business School. Laurie specialised in managerial and organisational behaviour, and managing people at work, and was subject leader for the behavioural and human resource management group. Laurie has experience of business, local government and university administration and human resource management. For a number of years he was also a member of, and an instructor in, the Territorial Army. He has undertaken a range of consultancy work including with the United Nations Association International Service (UNAIS); served as a visiting selector for Voluntary Service Overseas ( VSO); acted as adviser and tutor for a number of professional and educational bodies including UNISON Education; and served as an external examiner for university degree and postgraduate courses, and for professional organisations. Laurie has undertaken a year s academic exchange in the Department, University of Wisconsin, USA and a visiting fellowship at the School of, Royal Melbourne Institute of Technology University, Australia, and is a visiting lecturer in the Netherlands. Laurie is also author of Hospitality and Organisational Behaviour and Essentials of Organisational Behaviour, both published by Pearson Education.

3 A01_MULL4087_09_SE_FM.QXD 24/02/10 17:16 Page iii MANAGEMENT & ORGANISATIONAL BEHAVIOUR NINTH EDITION LAURIE J. MULLINS With Gill Christy Principal Lecturer in the Department of Human Resource and Marketing at the University of Portsmouth Business School

4 A01_MULL4087_09_SE_FM.QXD 24/02/10 17:16 Page iv Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: First published in 1985 in Great Britain under the Pitman imprint Fifth edition published in 1999 by Financial Times Pitman Publishing Seventh edition 2005 Eighth edition 2007 Ninth edition 2010 Laurie J. Mullins 1985, 1989, 1993, 1996, 1999, 2002, 2005, 2007, 2010 Chapters 4, 6 Linda Carter and Laurie J. Mullins 1993, 1996, 1999, 2002, 2005, 2007 Chapter 5 Linda Carter 1993, 1996, 1999, 2002, 2005, 2007 Chapter 16 Peter Scott 2010 Chapter 17 David Preece 1999, 2002, 2005, 2007 The right of Laurie J. Mullins to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6 10 Kirby Street, London, EC1N 8TS. All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners. Pearson Education is not responsible for content of third party internet sites. ISBN: British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record for this book is available from the Library of Congress Typeset in 9.5/12 pt Giovanni by 35 Printed and bound by Rotolito Lombarda, Italy The publisher s policy is to use paper manufactured from sustainable forests.

5 A01_MULL4087_09_SE_FM.QXD 24/02/10 17:16 Page v To my wife Pamela and for Nathan

6 A01_MULL4087_09_SE_FM.QXD 24/02/10 17:16 Page vi

7 A01_MULL4087_09_SE_FM.QXD 24/02/10 17:16 Page vii CONTENTS IN BRIEF Contents in detail and case studies About this book Guided tour of the book Guided tour of MyLab In acknowledgement and appreciation Publisher s acknowledgements ix xv xix xxii xxv xxvii xxviii Part 1 THE ORGANISATIONAL SETTING 1 Chapter 1 The Nature of Organisational Behaviour 2 Chapter 2 Approaches to Organisation and 41 Chapter 3 The Nature and Context of Organisations 77 Part 2 THE INDIVIDUAL 127 Chapter 4 Individual Differences and Diversity 128 Chapter 5 The Nature of Learning 171 Chapter 6 Perception and Communication 208 Chapter 7 Work Motivation and Job Satisfaction 252 Part 3 GROUPS, TEAMS AND LEADERSHIP 305 Chapter 8 The Nature of Work Groups and Teams 306 Chapter 9 Working in Groups and Teams 341 Chapter 10 The Nature of Leadership 372 Part 4 THE NATURE OF MANAGEMENT 423 Chapter 11 The Role of the Manager 424 Chapter 12 Managerial Behaviour and Effectiveness 456 Chapter 13 Human Resource 493 Part 5 STRUCTURES OF ORGANISATION 541 Chapter 14 Organisation Strategy and Structure 542 Chapter 15 Patterns of Structure and Work Organisation 585 Chapter 16 Technology and Organisations 621 Part 6 ORGANISATION MANAGEMENT 663 Chapter 17 Organisational Control and Power 664 Chapter 18 Corporate Responsibility and Ethics 704 Chapter 19 Organisation Culture and Change 736 Chapter 20 Organisational Performance and Effectiveness 775 Conclusion 819 Glossary 822 Index 835 vii

8 A01_MULL4087_09_SE_FM.QXD 24/02/10 17:16 Page viii & Organisational Behaviour, Ninth Edition SUPPORTING RESOURCES MyLab for students and instructors INSTANT ACCESS TO INTERACTIVE LEARNING Every new copy of this textbook comes with an access kit for MyLab, giving access to an unrivalled suite of online resources that relate directly to the content of & Organisational Behaviour, Ninth Edition. Within a flexible course management platform, instructors can: Assess student progress through homework quizzes and tests that are easily set using the extensive pre-prepared question bank. Assign short answer, discussion and essay questions from each chapter for student homework or tutorial preparation. Track student activity and performance using detailed reporting capabilities. Communicate with students and teaching staff using and announcement tools. Students will benefit from a personalised learning experience, where they can: Complete a diagnostic pre-test to generate a personal self-study plan that enables them to focus on the topics where their knowledge is weaker. Improve their understanding through a variety of practice activities including: revision flashcards, e-book reading assignments, short answer questions, audio downloads and video cases. Measure their progress with a follow-up post-test that ensures they have mastered key learning objectives and gives them the confidence to move on to the next chapter. A dedicated team is available to give you all the assistance you need to get online and make the most of MyLab. Contact your sales representative for further details. Additional instructor resources Complete, downloadable Instructor s Manual, which includes teaching tips, examples and solutions to discussion questions and other exercises within the text. Customisable testbank of question material. Downloadable PowerPoint slides of section summaries and figures in the book. These lecturer resources can be downloaded from the lecturer website at Click on the cover of & Organisational Behaviour, Ninth Edition, and select lecturer resources. Any content that includes answers will be password protected.

9 A01_MULL4087_09_SE_FM.QXD 24/02/10 17:16 Page ix CONTENTS IN DETAIL and case studies About this book Guided tour of the book Guided tour of MyLab In acknowledgement and appreciation Publisher s acknowledgements Part 1 THE ORGANISATIONAL SETTING xv xix xxii xxv xxvii xxviii 1 The Nature of Organisational Behaviour 2 The meaning of organisational behaviour 3 The study of organisational behaviour 3 A framework of study 4 Influences on behaviour 6 A multidisciplinary approach 8 Organisational metaphors 9 Orientations to work and the work ethic 10 as an integrating activity 12 The psychological contract 14 Organisational practices 18 The Peter Principle 18 Parkinson s Law 19 The changing world of work organisations 20 Globalisation and the international context 22 A cross-cultural approach to management 24 Is organisational behaviour culture-bound? 26 Five dimensions of culture: the contribution of Hofstede 27 Cultural diversity: the contribution of Trompenaars 28 Emerging frameworks for understanding culture 31 Convergence or culture-specific organisational behaviour 31 The importance of organisational behaviour 32 Synopsis 32 Review and discussion questions 33 : A melting pot for forging success 34 Assignments 1 and 2 35 Personal awareness and skills exercise 35 : Virgin Atlantic and Ryanair 36 Notes and references 39 2 Approaches to Organisation and 41 Theory of management 42 Developments in management and organisational behaviour 42 The classical approach 43 Scientific management 45 Relevance of scientific management 47 Bureaucracy 49 Criticisms of bureaucracy 50 Evaluation of bureaucracy 51 Structuralism 53 The human relations approach 53 Evaluation of the human relations approach 55 Neo-human relations 56 The systems approach 57 The contingency approach 59 Other approaches to the study of organisations 59 The decision-making approach 59 Social action 61 A number of approaches 62 Postmodernism 64 Relevance to management and organisational behaviour 65 Towards a scientific value approach? 67 Benefits to the manager 67 Synopsis 68 Review and discussion questions 69 : The story of the middleman 70 Assignment 71 Personal awareness and skills exercise 72 : Dell Computers: the world at your fingertips 72 Notes and references 74 3 The Nature and Context of Organisations 77 Perspectives of the organisation 78 The formal organisation 79 Basic components of an organisation 80 Private and public sector organisations 82 Social enterprise organisations 83 Production and service organisations 84 Types of authority and organisations 86 The classification of organisations 86 The organisation as an open system 88 Interactions with the environment 90 The comparative study of organisations 92 The analysis of work organisations 92 Contingency models of organisation 94 The informal organisation 94 Organisational conflict 96 ix

10 A01_MULL4087_09_SE_FM.QXD 24/02/10 17:16 Page x CONTENTS IN DETAIL Contrasting views of conflict 97 Positive and negative outcomes 98 The sources of conflict 99 Strategies for managing conflict 101 Organisational stress 103 Is stress necessarily to be avoided? 104 Causes of stress 105 Coping with stress 106 The work/life balance 109 The organisation of the future 111 Synopsis 113 Review and discussion questions 113 : Watch out for an epidemic of petty fraud 114 Assignments 1 and Personal awareness and skills exercise 116 : Grameen Bank: a case of applied business ethics 117 Notes and references 119 Academic viewpoint 121 Part 1 Cadbury: organisation, culture and history 122 Part 2 THE INDIVIDUAL 4 Individual Differences and Diversity 128 The recognition of individuality 129 How do individuals differ? 129 Personality 130 Nomothetic and idiographic approaches 130 Nomothetic personality theories 133 Idiographic theoretical approaches 135 Complementary approaches 136 Applications within the work organisation 138 Emotions at work 139 Type A and Type B personalities 140 Ability 141 Emotional intelligence (EI) 144 Attitudes 145 Attitude change 148 Testing and assessment 149 Diversity management 151 The business case for diversity 153 Diversity training 157 Top performing organisations 158 Criticisms and limitations 160 Diversity, gender and organisations 161 Synopsis 162 Review and discussion questions 163 : The Apprentice, week nine 163 Assignment 164 Personal awareness and skills exercise 165 : B&Q: the business case for diversity 166 Notes and references The Nature of Learning 171 The meaning and nature of learning 172 Organisations and the management of learning 175 How do people learn? 176 Behaviourism 177 Operant conditioning 178 Social learning 181 Limitations of the behavioural theories 181 Cognitive theories 182 Learning styles 182 Knowledge management 187 Emerging technologies and learning 190 Problems of managing knowledge 192 Creativity 193 Facilitating learning 196 Learning theory applied to study skills 198 Applications of learning theory to organisations 199 Synopsis 199 Review and discussion questions 200 : follows Dutch example with site simulations 200 Assignments 1 and Personal awareness and skills exercise 202 : VSO 203 Notes and references Perception and Communication 208 The perceptual process 209 Selectivity in attention and perception 209 Internal factors 212 Cultural differences 214 External factors 217 Organisation and arrangement of stimuli 218 Perceptual illusions 221 Selection and attention 222 Organisation and judgement 223 Connection of the conscious, unconscious and physiology 225 Perceiving other people 226 Non-verbal communication and body language 230 Interpersonal communications 231 Neuro-linguistic programming (NLP) 234 Transactional analysis (TA) 235 Attribution theory 237 Perceptual distortions and errors 239 Stereotyping 239 The halo effect 240 Perceptual defence 241 Projection 241 Self-fulfilling prophecy 241 Understanding the organisational process 242 Synopsis 243 Review and discussion questions 244 x

11 A01_MULL4087_09_SE_FM.QXD 24/02/10 17:16 Page xi CONTENTS IN DETAIL : How to be happy in life: let out your anger 245 Assignments 1 and Personal awareness and skills exercise 247 : Behavioural economics 248 Notes and references Work Motivation and Job Satisfaction 252 The meaning of motivation 253 Needs and expectations at work 254 Money as a motivator 255 Broader intrinsic motivation 256 Frustration-induced behaviour 257 Theories of motivation 259 Content theories of motivation 260 Maslow s hierarchy of needs theory 260 Alderfer s modified need hierarchy model 264 Herzberg s two-factor theory 265 McClelland s achievement motivation theory 267 Process theories of motivation 268 Vroom s expectancy theory 269 The Porter and Lawler expectancy model 271 Lawler s revised expectancy model 273 Implications for managers of expectancy theories 274 Equity theory of motivation 275 Goal theory 276 Attribution theory 278 Relevance today for the manager 278 Organisational behaviour modification 278 The motivation of knowledge workers 280 Cross-cultural dimensions of motivation 281 Job satisfaction 282 Alienation at work 285 A comprehensive model of job enrichment 285 Contextual factors in job design 289 Synopsis 289 Review and discussion questions 290 : Top marks for the best employee awards 291 Assignments 1 and Personal awareness and skills exercise 292 : Don t get mad, get on-line! 293 Notes and references 296 Academic viewpoint 298 Part 2 Philanthropy: the resurgence of personal social responsibility? 299 Part 3 GROUPS, TEAMS AND LEADERSHIP 8 The Nature of Work Groups and Teams 306 The meaning and importance of groups and teams 307 Differences between groups and teams 307 Group values and norms 309 Formal and informal groups 311 Reasons for formation of groups or teams 313 Group cohesiveness and performance 314 Membership 314 Work environment 316 Organisational 317 Group development and maturity 317 Social identity theory 319 Potential disadvantages of strong, cohesive groups 320 Characteristics of an effective work group 321 The effects of technology 321 Virtual teams 322 Role relationships 326 Role conflict 328 The importance of teamwork 331 Synopsis 333 Review and discussion questions 334 : Dragon boat racing on the Thames 335 Assignments 1 and Personal awareness and skills exercise 336 : Mumbai s dabbawalahs: a world-class quality service 337 Notes and references Working in Groups and Teams 341 Interactions among members 342 Belbin s team roles 342 Patterns of communication 344 Analysis of individual behaviour 347 Sociometry 347 Interaction analysis 349 Frameworks of behavioural analysis 350 Balance between the team and the individual 351 Individual compared with group or team performance 353 Brainstorming 355 Quality circles 357 Group dynamics 358 Self-managed work groups 360 Building successful teams 361 Synopsis 364 Review and discussion questions 365 : Falling down 366 Assignments 1 and Personal awareness and skills exercise 367 : Top Gear 368 Notes and references The Nature of Leadership 372 The meaning of leadership 373 Leadership or management? 373 Approaches to leadership 375 The qualities or traits approach 375 xi

12 A01_MULL4087_09_SE_FM.QXD 24/02/10 17:16 Page xii CONTENTS IN DETAIL The functional (or group) approach 377 Action-centred leadership 378 Leadership as a behavioural category 379 Styles of leadership 380 Continuum of leadership behaviour 381 Contingency theories of leadership 383 Fiedler s contingency model 384 Vroom and Yetton contingency model 386 The Vroom and Jago revised decision model 387 Path goal theory 387 Readiness of the followers or group 389 Transformational leadership 391 Inspirational or visionary leadership 392 Leadership and innovation 396 The leadership relationship 397 Leadership effectiveness 399 Cross-cultural dimensions of leadership 401 Leadership development 402 No one best form of leadership 404 Leaders of the future 405 Synopsis 406 Review and discussion questions 407 : Managing the mood is crucial 407 Assignments 1 and Personal awareness and skills exercise 409 : Being Apple: Steve Jobs 411 Notes and references 413 Academic viewpoint 416 Part 3 The Eden Project 417 Part 4 THE NATURE OF MANAGEMENT 11 The Role of the Manager 424 The meaning of management 425 The process of management 428 Principles of management 429 as a social process 431 The tasks and contribution of a manager 432 Essential nature of managerial work 433 in private enterprise and public sector organisations 435 The work of a manager 436 Managerial roles 437 Behaviour pattern of general managers 439 Determining what real managers do 440 Patterns of managerial work and behaviour 441 What great managers do 441 The attributes and qualities of a manager 442 The importance of management skills 443 The changing role of managers 446 Synopsis 448 Review and discussion questions 449 : Science of managing monkeys 449 Assignments 1 and Personal awareness and skills exercise 451 : Stuck in the middle? 452 Notes and references Managerial Behaviour and Effectiveness 456 The importance of managerial style 457 Theory X and Theory Y management 458 The Managerial/Leadership Grid 461 systems 465 by objectives (MBO) 467 Managing with and through people 469 The nature of people at work 474 Managerial effectiveness 475 Measures of effectiveness 476 The Standards Centre 477 The 3-D model of managerial behaviour 478 The management of time 480 Synopsis 484 Review and discussion questions 485 : When a packed diary betrays a busy fool 485 Assignment 486 Personal awareness and skills exercise 487 : Effective management: a question of context? 488 Notes and references Human Resource 493 The nature of human resource management 494 Human capital management 495 HRM policies, activities and functions 497 Organisation of the HRM function 498 Working in partnership with line managers 499 A strategic business partnering approach 501 The importance of HRM 502 Training and development 502 The management of training 504 E-learning 506 Investors in People 507 Talent management 509 Performance management (PM) 510 Methods of measurement and review feedback and upward feedback 514 Benefits of performance management 515 Employee relations 519 Unitary and pluralistic perspectives 520 Regulating the employment contract 520 International dimensions of HRM 523 Effectiveness of the HRM function 525 Synopsis 527 Review and discussion questions 528 xii

13 A01_MULL4087_09_SE_FM.QXD 24/02/10 17:16 Page xiii CONTENTS IN DETAIL : The carrot and stick approach 528 Assignment 529 Personal awareness and skills exercise 529 : The changing role of HRM 531 Notes and references 533 Academic viewpoint 536 Part 4 Jamie Oliver: The Naked Manager? 537 Part 5 STRUCTURES OF ORGANISATION 14 Organisation Strategy and Structure 542 The importance of strategy 543 SWOT analysis 545 Organisational goals 546 Objectives and policy 549 Dimensions of organisation structure 551 The importance of good structure 552 Levels of organisation 553 Underlying features of organisation structure 555 Division of work 557 Centralisation and decentralisation 560 Principles of organisation 561 Span of control 562 The chain of command 563 The importance of the hierarchy 564 Formal organisational relationships 566 Project teams and matrix organisation 569 Effects of a deficient organisation structure 572 Organisation charts 573 Empowerment and control 574 Synopsis 576 Review and discussion questions 577 : A taxing merger 577 Assignments 1 and Personal awareness and skills exercise 579 : Zara: a dedicated follower of fashion 580 Notes and references Patterns of Structure and Work Organisation 585 Variables influencing organisation structure 586 The contingency approach 586 Size of organisation 588 Technology 589 The Woodward study 589 Major dimensions of technology: the work of Perrow 593 Environment 594 The Burns and Stalker study 594 Mixed forms of organisation structure 595 The Lawrence and Lorsch study 597 Evaluation of the contingency approach 598 Contribution of contingency theory 600 Culture as a contingent factor 601 The changing face of the workplace 603 The demand for flexibility 605 The shamrock organisation 608 Structure and organisational behaviour 611 Synopsis 613 Review and discussion questions 614 : Independents will always have their day 614 Assignments 1 and Personal awareness and skills exercise 616 : John Lewis, Waitrose and Ocado: distinctively successful 616 Notes and references Technology and Organisations 621 Peter Scott Why study technology? 622 What do we mean by technology? 623 Approaches to technology and organisation 625 Decision-making processes 629 Involvement of HRM specialists and users of technology 632 Technology, work and organisational behaviour 634 Skill, work design and job quality 635 Centralisation versus decentralisation of control 636 Location of work 639 Nature of social interactions 642 The pace and intensity of work 643 The digital divide and job security 644 Synopsis 645 Review and discussion questions 646 : Should Twitter be confined to the marketing department? 647 Assignment 648 Personal awareness and skills exercise 648 : Accessible technology: Tesco s accessible website 649 Notes and references 651 Academic viewpoint 656 Part 5 Co-operatives 657 Part 6 ORGANISATION MANAGEMENT 17 Organisational Control and Power 664 The controversial nature of control 665 Expression of managerial behaviour 667 Elements of an organisational control system 668 Forms of control 669 Strategies of control in organisations 671 xiii

14 A01_MULL4087_09_SE_FM.QXD 24/02/10 17:16 Page xiv CONTENTS IN DETAIL Characteristics of an effective control system 673 Power and management control 675 Perspectives of organisational power 676 Pluralistic approaches to power 678 The balance between order and flexibility 679 Behavioural factors in control systems 680 Financial and accounting systems of control 681 The concept of empowerment 683 The manager subordinate relationship 684 Benefits of delegation 686 Reasons for lack of delegation 687 The art of delegation 688 A systematic approach to empowerment and delegation 689 Does empowerment deliver? 692 Synopsis 694 Review and discussion questions 695 : The undercover boss 695 Assignment 697 Personal awareness and skills exercise 698 : What you say is what you get...? 699 Notes and references Corporate Responsibility and Ethics 704 Organisational ideologies and principles 705 Mission statements 707 The profit objective 709 The balanced scorecard 711 Corporate social responsibilities (CSRs) 712 Organisational stakeholders 714 The UN Global Compact 716 Values and ethics 717 Ethics and corporate social responsibility 718 Business ethics 721 Codes of business conduct (or ethics) 725 Synopsis 727 Review and discussion questions 728 : Trade-offs in the moral maze 728 Assignments 1 and Personal awareness and skills exercise 730 : The Fairtrade Foundation 731 Notes and references Organisation Culture and Change 736 Organisation development, culture and change 737 Organisational culture 739 Types of organisational culture 740 Influences on the development of culture 742 The cultural web 743 The importance of culture 744 Organisational climate 748 Employee commitment 749 The nature of organisational change 751 Planned organisational change 753 Resistance to change 756 The management of organisational change 759 Overcoming resistance to change 761 Synopsis 764 Review and discussion questions 765 : The time is ripe for fresh ideas 765 Assignments 1 and Personal awareness and skills exercise 769 : Moving with the times 770 Notes and references Organisational Performance and Effectiveness 775 The nature of organisational effectiveness 776 The democratic enterprise 778 The learning organisation 779 Total quality management (TQM) 782 Business process re-engineering (BPR) 785 The importance of effective management 786 The meaning and nature of management development 787 development process 789 Continuing professional development (CPD) 791 The EFQM Excellence Model 792 Assessing organisational performance 794 A range of different criteria 796 Successful organisations and people 799 Employee engagement 800 The future of work and management 801 Synopsis 803 Review and discussion questions 804 : How to manage the clever squad 804 Assignments 1 and Personal awareness and skills exercise 807 : Who says business is boring? M&S s rollercoaster ride 808 Notes and references 811 Academic viewpoint 813 Part 6 Riverford Organic 814 Conclusion 819 Glossary 822 Index 835 xiv

15 A01_MULL4087_09_SE_FM.QXD 24/02/10 17:16 Page xv MANAGEMENT IN THE NEWS and CASE STUDIES Chapter Page Type of Title Subject Organisation/ Country/ no. case business person region Chapter 1 The Nature of Organisational Behaviour A melting pot for forging success Virgin Atlantic and Ryanair See how a well managed, culturally diverse workforce can come together to produce a better product How can two similar organisations develop very different organisational cultures? Dillinger Hütte Virgin Atlantic Airways, Richard Branson and Ryanair, Michael O Leary Germany/ France/ Luxembourg /Ireland Chapter 2 Approaches to Organisation and The story of the middleman Dell Computers: the word at your fingertips This examination takes the pulse of the current state of middle management From small business to global giant, Dell Computers mobilises workers on three continents to get your new PC to you Paul Osterman, author of The Truth about Middle Managers Dell Computers, Michael Dell USA/Global USA/Global Chapter 3 The Nature and Context of Organisations Watch out for an epidemic of petty fraud Grameen Bank: a case of applied business ethics In a tough economy, many companies are finding dishonesty and fraud in the workplace on the rise How ingenuity coupled with enterprise can present an alternative to charity and government aid as a route out of poverty Grameen Bank, Mohammed Yunus Bangladesh Part 1 The Organisational Setting 122 Longer case study Cadbury: organisation, culture and history The historical context may change organisational practices, but doesn t necessarily change core values Cadbury Chapter 4 Individual Differences and Diversity The Apprentice, week nine B&Q: The business case for diversity Employers learn the lessons of making assumptions about age and the experience and capability of employees Diversity in the workforce is shown to be a strength and a way to grow a business B&Q Chapter 5 The Meaning and Nature of Learning follows Dutch example with site simulations VSO The construction industry uses virtual reality to train its workers Discovering the value of learning and sharing knowledge and the changes it can make in people s lives Balfour Beatty VSO /the Netherlands /Global Chapter 6 Perception and Communication How to be happy in life: let out your anger Behavioural economics Harnessing your anger can lead to personal and professional success Explore the links between perception, thought and behaviour and the decisions we make Global Global Chapter 7 Work Motivation and Job Satisfaction Top marks for the best employee awards Don t get mad, get online! Do weekly, monthly or yearly awards provide incentive or cause resentment among employees? Blogging may open a new window on organisational life, but it can get you fired Kwik-Fit Financial Services Ellen Simonetti, Queen of the Sky; IBM /USA/ France Part 2 The Individual 299 Longer case study Philanthropy: the resurgence of personal social responsibility? It was big in the 19th century, but is there a resurgence in philanthropy as a new form of ethical behaviour by business leaders? Bill Gates, Warren Buffet and Anita Roddick Global xv

16 A01_MULL4087_09_SE_FM.QXD 24/02/10 17:16 Page xvi MANAGEMENT IN THE NEWS AND CASE STUDIES Chapter Page Type of Title Subject Organisation/ Country/ no. case business person region Chapter 8 The Nature of Work Groups and Teams Dragon boat racing on the Thames Mumbai s Dabbawalahs: a worldclass quality service Tight teamwork and simple technique makes dragon boat racing the perfect corporate team sport The extraordinary teamwork that delivers thousands of hot lunches from home to workplace every day Thames Dragon Boat Club Dabbawalahs India Chapter 9 Working in Groups and Teams Falling down Top Gear Charting the rise and fall of companies and the need to avoid complacency in business A winning team in front of and behind the cameras provide the formula for television success Jim Collins, author of How the Mighty Fall Top Gear, BBC, Jeremy Clarkson, James May, Richard Hammond and The Stig Global Chapter 10 The Nature of Leadership Managing the mood is crucial Being Apple: Steve Jobs Are moods contagious? Temperament and character can help stop a bad situation from getting worse This computer giant is quirky, stylish and generates fierce loyalty among its fans; but can it survive without Steve? Apple, Steve Jobs Global USA Part 3 Groups, Teams and Leadership 417 Longer case study The Eden Project Promoting environmental awareness may be an altruistic aim, but the project need more than good will and enthusiasm to survive Eden Project, Tim Smit Chapter 11 The Role of the Manager Science of managing monkeys Stuck in the middle? Is the key to success in the managing of groups allowing employees to follow their animal instincts? Most managers are middle managers; but are they happy with their lot? Charles Jacobs, author of Rewired Global Chapter 12 Managerial Behaviour and Effectiveness When a packed diary betrays a busy fool Effective management: a question of context? Is a busy schedule a sign of neurosis or an achievement? How the balance between structure and being accessible can save time Merchant banking is an aggressive, macho world, so how does a working mum succeed? Nicola Horlick, Bramdean Asset Chapter 13 Human Resource The carrot and stick approach The changing role of HRM Should organisations reward employees for adopting healthy lifestyles? The HRM function has long been seen as a service to line managers, but can it be outsourced successfully? Unilever, Pitney Bowes BT, Accenture /USA Global Part 4 The Nature of 537 Longer case study Jamie Oliver: The Naked Manager? In the fast and intense atmosphere of a kitchen, can a chef also be a good manager? Jamie Oliver, Fifteen Chapter 14 Organisational Structures and Design A taxing merger Zara: a dedicated follower of fashion When two organisations merge, creating a common culture can prove difficult In the frenetic world of high street fashion, innovative organisational structures have created one of the most sophisticated JIT operations in the world Her Majesty s Revenue and Customs (HMRC) Zara, Inditex Spain/ Global Chapter 15 Patterns of Structure and Work Organisation Independents will always have their day John Lewis, Waitrose and Ocado: distinctively successful The indies of the business world bring innovation to the marketplace and force the big players to up their game An unusual organisational structure leads to a very particular culture and style of organisational behaviour John Lewis, Waitrose and Ocado Global xvi

17 A01_MULL4087_09_SE_FM.QXD 24/02/10 17:16 Page xvii MANAGEMENT IN THE NEWS AND CASE STUDIES Chapter Page Type of Title Subject Organisation/ Country/ no. case business person region Chapter 16 Technology and Organisations Should twitter be confined to the marketing department? Tesco s accessible website Are the rewards worth the risk when organisations venture online in a network society? How technical advances can change people s quality of life Twitter, Don Tapscott, Bernhard Warner, Oliver Toubia Tesco, RNIB Global Part 5 Structures of Organisation 657 Longer case study Co-operatives Invented in the 19th century, cooperatives are still going strong Rochdale Equitable Pioneers Society, Mondragón Cooperative Corporation Global Chapter 17 Organisational Control and Power The undercover boss What you say is what you get...? A CEO dons a disguise and learns that an effective, open dialogue is the key to your communicating key messages to staff Gender differences in communication may partly explain the glass ceiling, but not everywhere Clugston Group, Stephen Walker Female managers in France,, Germany and China Global Chapter 18 Corporate Responsibility and Ethics Trade-offs in the moral maze The Fairtrade Foundation An examination into the moral ambiguities of the workplace versus the black and white world of business ethics As the popularity of fairtrade increases, is its growth sustainable or has commercialisation resulted in a cleanwashing of an idealistic movement? Prof Michel Anteby, Harvard Business School The Fairtrade Foundation /Global Chapter 19 Organisation Culture and Change The time is ripe for fresh ideas Moving with the times Do recessionary times act as the catalyst to spur changes in organisational cultures? Can hot-desking really work? One team of professionals shows the way NHS Workforce Review Team (WRT) Global Chapter 20 Organisational Performance and Effectiveness How to manage the clever squad Who says business is boring? M&S s rollercoaster ride Is it time to reframe the debate over talent, and knowledge workers? How Marks & Spencer went from takeover target to the toast of the stock exchange Marks & Spencer, Stuart Rose Global Part 6 Organisation 814 Longer case study Riverford Organic What does it mean to be an ethical organisation? Can an organisation go even further to actively reduce the environmental impact of modern life? Riverford Organic xvii

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19 A01_MULL4087_09_SE_FM.QXD 24/02/10 17:16 Page xix ABOUT THIS BOOK The concepts and ideas presented in this book provide a basis for an appraisal of contrasting perspectives on the structure, operation and management of organisations, and interactions among people who work in them. It is hoped that this will encourage a greater level of awareness and sensitivity to organisational factors and management processes influencing the behaviour and performance of people at work. The underlying theme of the book is the need for organisational effectiveness based on an understanding of organisational behaviour, the people resource, and the role of management as an integrating activity. Adopting a managerial perspective provides a clear focus of attention and helps to overcome any perceived distinction between organisational behaviour and organisational analysis. The aims of this book The aims of this book are to: relate the study of organisational behaviour with that of management; provide an integrated view embracing both theory and practice; point out applications of social science within work organisations and implications for management action; indicate ways in which organisational performance may be improved through better understanding of human resources and the effective management of people. The intended audience The comprehensive coverage and progressive presentation of contents will appeal to students at undergraduate level or on related professional courses; and to graduate and post-experience students who through their course of study wish to enhance their knowledge and understanding of the subject area. It is also hoped that the book may appeal to those aspiring to a managerial position. The scope of this book The behaviour and actions of people at work and the activities of an organisation are directed towards the achievement of certain goals and also have social implications. The study of organisational behaviour should not therefore be considered in a vacuum but related to the process of management and to the wider organisational context and environment. Broadening the scope of the subject matter beyond the concerns of traditional organisational behaviour texts is a distinctive feature of this book. The study of organisational behaviour is a wide and essentially multidisciplinary field of inquiry and no single book could hope to cover adequately all aspects of the subject area. In order to attain a reasonable depth, this book concentrates on selected topics of particular relevance to organisational behaviour and management of the human resource, and which meet the needs of the intended audience. The design and contents of this book mean that it is especially suitable across a range of different but related modules, including single or double semester units, and will help provide an integrated approach to your course of study. xix

20 A01_MULL4087_09_SE_FM.QXD 24/02/10 17:16 Page xx ABOUT THIS BOOK xx Format of this book There is a logical flow to the sequencing of topic areas and each chapter of the book is selfcontained with appropriate cross-referencing to other chapters. Main sections are identified clearly within each chapter and there are detailed headings and sub-headings. This provides a flexible approach. The selection and ordering of chapters can be varied to suit the demands of your particular courses of study or individual interests. The book is written with a minimum of technical terminology and the format is clearly structured. Each chapter is supported with illustrations and contains: a short introduction and learning outcomes; critical reflections throughout the text; a synopsis of key points; review and discussion questions; a practical example of management ; assignment(s); a personal awareness and skills exercise; a case study; detailed notes and references. For each Part of the book there is also an academic viewpoint and an integrative case study. Words set in colour throughout the main text indicate inclusion in the Glossary. The ninth edition The text retains the same underlying aims and approach that have been a hallmark of the success of the book. For this ninth edition there have been an extensive review of the overall plan and order of contents between and within chapters; and considerable additional and updated contents, figures and practical examples throughout. Readers familiar with previous editions may wish to note the main changes in this ninth edition, including: Reworking of Chapter 1 including expanded coverage of orientations to work, globalisation and cultural influences. Major new section on social enterprise organisations, new section on the future of work and the Y factor, extended coverage of stress and work/life balance (Chapter 3). Expanded coverage and major new organisational examples of diversity (Chapter 4). New section on lifelong learning, extended coverage of the Honey and Mumford styles of learning (Chapter 5) and material on learning organisations consolidated in Chapter 20. Extended coverage with additional examples of cultural influences on perception and communication (Chapter 6). Major new section on organisational behaviour modification, and new section on the ultimatum game (Chapter 7). New sections on creative leadership and group development, and social identity theory (Chapter 8). Additional coverage of leadership effectiveness and cross-cultural dimensions (Chapter 10). Increased attention to the changing role of management (Chapter 11). Updated Standards (Chapter 12). Reworking of Chapter 13 Human Resource to provide greater emphasis on a strategic approach, and new material throughout including Investors in People, performance management and a new section on talent management. Organisation strategy moved to provide a closer link with organisation structure in a rewritten Chapter 14. Complete rewriting of Chapter 16, Technology and Organisations with greater emphasis on social implications and impact on people. Expanded coverage of corporate responsibility and ethics in a separate Chapter 18.

21 A01_MULL4087_09_SE_FM.QXD 24/02/10 17:16 Page xxi ABOUT THIS BOOK Expanded coverage of organisational change including new section on the neuroscientific approach to resistance to change (Chapter 19). Consolidated material on the learning organisation, new material on organisational effectiveness, employee engagement, and the future of work and management (Chapter 20). For each chapter there is now a set of six critical reflections throughout the text. A completely new for every chapter; a significant number of new and updated end of chapter Case studies; and the addition of an Academic viewpoint feature at the end of each Part of the book. Attention continues to be focused on design features and overall appearance to provide a manageable and attractive text with enhanced clarity and user friendliness. Your study of this book This book adopts an applied approach to the study of management and organisational behaviour. The objective analysis of organisations is supported, where appropriate, by a more prescriptive stance. For example, the underlying need to establish a framework of order through which the work of the organisation is undertaken demands attention to certain basic principles and consideration of organisation and management. The Critical reflections throughout each chapter are controversial statements to help provoke critical thinking, inspire personal reflection about the areas you have just read and about what happens in your own organisation. The Review and discussion questions at the end of each chapter help test your knowledge and understanding of the contents, and provide a basis for revision and review of progress. The, Assignments, Personal awareness and skills exercises, and Case studies provide an opportunity to relate ideas, principles and practices to specific work situations, to think and talk about major issues, and to discuss and compare views with colleagues. The Notes and references given at the end of each chapter are to encourage you to pursue further any issues of particular interest. The Academic viewpoint at the end of each Part relates to a recent article in an academic journal that prompts you to explore and question a topic relating to that Part of the book. The integrative Part Case studies provide a further opportunity to relate and discuss key concepts and ideas to your reading of the text. The comprehensive Glossary provides a brief description of key terms referred to in the text. In order to help relate the contents of the chapters to real-life situations, many of the questions ask you to support your discussion with examples from your own organisation. This can, of course, be your college or university. Alternatively, you may have work experience, even part-time or casual employment, in other organisations that you may draw upon. You are encouraged to complement your reading by drawing upon your own experiences of work organisations. Search for both good and bad examples of organisational behaviour and people management. Consider the manner in which concepts, ideas and examples presented in this book can best be applied in particular work situations. Contemporary examples from your own observations should help illustrate real-life applications and further your interest in the subject area. I hope you will find satisfaction, and even some measure of enjoyment, from this book. Laurie J. Mullins xxi

22 A01_MULL4087_09_SE_FM.QXD 24/02/10 17:17 Page xxii GUIDED TOUR OF THE BOOK Part 1 THE ORGANISATIONAL SETTING The Nature of Organisational Behaviour Approaches to Organisation and The Nature and Context of Organisations The book is divided into six parts, each of which opens with a list of chapters and a link to relevant online video content. The Global Context ONLINE VIDEO CASE STUDY Visit to access the online video case study that complements Part 1: The Organisational Setting. This video offers a real life example of how one company responds to the context of business today. Maersk is a global shipping company with over 500 vessels moving nearly 2 million containers. In this video, Customer Service Director Brian Godsafe describes how the company operates and meets the varied needs of customers around the world. 7 WORK MOTIVATION AND JOB SATISFACTION Chapter introductions provide a brief description of the key themes in the chapter. Learning outcomes enable you to focus on what you should have achieved by the end of the chapter. The relationship between the organisation and its members is influenced by what motivates them to work and the rewards and fulfilment they derive from it. The nature of the work organisation, styles of leadership and the design and content of jobs can have a significant effect on the satisfaction of staff and their levels of performance. The manager needs to know how best to elicit the co-operation of staff and direct their efforts to achieving the goals and objectives of the organisation. Learning outcomes After completing this chapter you should be able to: explain the meaning and underlying concept of motivation; detail main types of needs and expectations of people at work; explain frustration-induced behaviour and possible reactions to frustration at work; examine main theories of motivation and evaluate their relevance to particular work situations; review the meaning, nature and dimensions of job satisfaction; assess broader influences on motivation and job satisfaction; evaluate the relationship between motivation, job satisfaction and work performance. PART 4 THE NATURE OF MANAGEMENT the top of the hierarchy. One of her most notable contributions was emphasis on the situational approach as one of the main forces in influencing the manager subordinate relationship through the depersonalising of orders and obeying the law of the situation. 48 Parker suggests that Follett s ideas on human relations in the workforce foreshadowed the state of things to come and continue to offer managers in the new century fresh food for thought. Her proposals for best management practice have not only reflected much of what is portrayed as new today but offer managers fresh insight into the task of leadership and management. 49 Critical reflection Some writers argue that people do not lack motivation, only the right triggers to motivate them. Some claim that motivation can only come from within and attempts from other people to motivate you have little lasting influence. What are your views? In your own words, what motivates you most? The fact is that management ultimately depends on an understanding of human nature. I suggest it goes much further than that. In the first place, good management depends on the acceptance of certain basic values. It cannot be achieved without honesty and integrity, or without consideration for the interests of others. Secondly, it is the understanding of human foibles that we all share, such as jealousy, envy, status, prejudice, perception, temperament, motivation and talent, which provides the greatest challenge to managers. HRH The Duke of Edinburgh 50 is about human beings. Its task is to make people capable of joint performance, to make their strengths effective and their weaknesses irrelevant. This is what organization is all about, and it is the reason that management is the critical, determining factor... We depend on management for our livelihoods and our ability to contribute and achieve. quotes provide insight into managerial thinking. Peter F. Drucker 51 Critical reflection Critical reflections are controversial statements to inspire critical thinking about the areas you have just read. A number of eminent writers have drawn attention to the changing nature of management and the work of the manager. Yet reading the ideas of other gurus such as Peter Drucker and Mary Parker Follett it appears little is really new, and the underlying role of management remains unchanged. What are your views? What specifically do you see as the likely role of the manager in ten years time? SYNOPSIS is a generic term and subject to doing we can summarise the nature of managerial many interpretations. A number of contrasting ideas work as clarification of objectives, planning, organisxxii