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 Chapter 3: Perception and Learning in Organizations. This edition updates the sec- tion on selective attention, organization, and interpretation on the basis of the rapidly developing research on this topic. It also introduces the increasingly popular concept of global mindset in the context of perception and learning. The chapter adds discussion about false-consensus effect as well as the implicit association test. It also reorganizes into one section the discussion about prac- tices that minimize perceptual problems. Positive organizational behavior,

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Preface xix

which was introduced in previous editions, is described in this chapter and mentioned again in subsequent chapters of this book.

• Chapter 4: Workplace Emotions, Attitudes, and Stress. This chapter now incorpo- rates the topic of stress, which is closely related to workplace emotions. It contin- ues to present a clearer explanation of the dual (cognitive and emotional) processes of attitudes and provides a fuller understanding about the dimensions of emo- tional intelligence. This chapter also discusses “shock events” in job satisfaction.

• Chapter 5: Foundations of Employee Motivation. The previous edition was appar- ently the first OB book to discuss employee engagement. This edition moves the topic to this chapter, so employee engagement is more closely connected to employee motivation as well as the MARS model. The balanced scorecard has also been moved to this chapter, because of its emphasis on goal setting more than rewards. The chapter also distinguishes drives from needs and explains how drives and emotions are the prime movers of human motivation. It de- scribes Maslow’s contribution to the field of human motivation. Organizational Behavior was the first OB textbook to introduce four-drive theory, and this edi- tion further refines the description of that model and its practical implications. Finally, this chapter introduces the positive organizational behavior concept and practice called strengths-based feedback.

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

• Chapter 7: Decision Making and Creativity. This edition introduces three of the de- cision heuristic biases discovered and popularized by Kahneman and Tversky. The chapter also revises and updates the discussion of problems with problem identification, the section on the influence of emotions on making choices, and the section on characteristics of creative people. It also has a more dedicated overview of the rational choice concept of subjective expected utility.

• Chapter 8: Team Dynamics. This edition combines the two chapters on teams found in previous editions. It summarizes types of teams and more fully dis- cusses the potential benefits and problems with teams. Furthermore, this edition introduces new information on the competencies of effective team members, re- vises the writing on self-directed teams and virtual teams, and provides emerg- ing knowledge about two key processes in team development: team identity and team competence.

• Chapter 9: Communicating in Teams and Organizations. The previous edition was apparently the first OB textbook to discuss the role of blogs and wikis in organi- zations. This edition continues this leadership with new information about so- cial networking communication. Other new knowledge in this chapter includes the topic of multicommunicating, social acceptance as a contingency in the se- lection of communication channels, conditions that offset the effects of media richness, and four factors that influence the effectiveness of the communication process (i.e., encoding and decoding).

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

• Chapter 11: Conflict and Negotiation in the Workplace. This edition offers a more detailed look at the contingencies of conflict handling. It also revises and

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xx Preface

updates the development of thinking about whether conflict is good or bad. This description includes the emerging model of constructive versus relation- ship conflict and the ways to allow the former while suppressing the latter. The discussion of negotiation now includes more specific advice regarding making concessions.

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

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

• Chapter 14: Organizational Culture. This edition more specifically (than in past editions) critiques the “integration” perspective of organizational culture by re- ferring to the alternative differentiation and fragmentation views of this topic. It also describes attraction-selection-attrition theory as well as the Organizational Culture Profile model. The section on organizational culture and performance and the section on changing and strengthening organizational culture have been substantially rewritten.

• Chapter 15: Organizational Change. In this edition, the topic of resistance to change is further updated regarding the three functions of resistance. We added a new section on large-group interventions as a distinct fourth approach to orga- nizational change. The topics of urgency for change and future-search confer- ences also received minor updates.

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supporting the learning process

The changes described

previously refer only to the

text material. Organizational

Behavior, Fifth Edition, also

has improved technology

supplements, cases, videos,

team exercises, and self-


One of Robert Iger’s first tasks as Walt Disney Co.’s new CEO was to acquire Pixar

Animation Studios and put its leaders—John Lasseter (shown in this photo) and Ed

Catmull—in charge of Disney’s own animation unit, Walt Disney Animation Studios. The

studio that brought us Mickey Mouse and The Lion King had become moribund over the

past decade, eclipsed by Pixar’s award-winning productions. Disney already had lucrative

distribution rights to Pixar’s first five films, including any sequels, but Iger wanted something

much more valuable. He wanted the organizational behavior practices that have made Pixar

a powerhouse filmmaker, from Toy Story to y Wall-E .EE

Pixar’s success is founded on the notion that

companies depend on the quality of their employees and

how well they collaborate with each other. “From the very

beginning, we recognized we had to get the best people,

technically, from the computer science world, and from

the artistic filmmaking animation world, and get them

working together,” explains John Lasseter, who is now

chief creative officer of both Pixar and Disney Animation

Studios. “That, right there, is probably the secret to Pixar.”

Pixar enables people to work together in several ways.

First, the company relies on long-term employment

relationships rather than short-term project contracts.

These long-term relationships improve team development

and social networks. “The problem with the Hollywood

model is that it’s generally the day you wrap production

that you realize you’ve finally figured out how to work

together,” says Randy Nelson, head of Pixar University.

“We’ve made the leap from an idea-centered business to a

people-centered business.” Pixar’s campus in Emeryville,

California, is another reason why employees work well

together. The buildings were designed to cluster people

into teams yet also to encourage chance encounters with

people from other projects. “When people run into each

other and make eye contact, innovative things happen,” says Pixar director Brad Bird.

Pixar’s egalitarian, no-nonsense, perfectionist culture is a third reason why the

animation studio’s staff members work effectively. The company gives power to its

production teams rather than to senior executives, but these teams are also ruthless at

writing and rendering scenes several times until they look right. All employees—from

entry-level newcomers to the CEO—are encouraged to be creative and offer candid

feedback about work in progress. Production teams have regular “sweatbox” sessions

at which problems are discussed openly. Even the most successful films receive a

“postmortem” to discover how they could have been improved. “Our job is to address

problems even when we’re successful,” explains Pixar/Disney Animation president Ed

Catmull, whose leadership is identified as the foundation of Pixar’s unique culture. 1

Several organizational behavior practices have helped Pixar Animation Studios become the world’s most successful animation studio.

Yasmeen Youssef’s self-confidence was a bit shaky when she and her husband moved

from Egypt to Canada a few years ago. “I was worried no one would take a chance on

me, would believe in me,” she recalls. But any self-doubts slowly disappeared after

taking an entry-level job with Fairmont Hotels & Resorts corporate offices in Toronto.

“Everything changed when I started working at Fairmont,” says Youssef, who is now on

Fairmont’s human resource team and recently trained new staff in Cairo. “I can’t believe

the amount of value, care, respect everyone has extended to me.”

As North America’s largest luxury hotel operator,

Fairmont discovered long ago that one of the secret

ingredients for employee performance and well-being

is supporting the individual’s self-concept. “People want

to feel valued and they stay where they feel valued,”

says Carolyn Clark, Fairmont’s senior vice president of

human resources. Clark also points out that Fairmont

is able to nurture this talent by selecting the best,

which means hiring people with the right values and

personality for superb customer service. “We believed

that we could train the technical skills—that’s the easy

part,” Clark explained a few years ago. “What we can’t

train is the service orientation. We just can’t put people

in the training program and say they are going to come

out smiling if that is not inherent in them.”

Along with hiring people with the right values and

personality and nurturing their self-concept, Fairmont

is developing staff to work effectively in a multicultural

world. Sean Billing is a case in point. The economics

graduate had been working as Fairmont’s director of

rooms in Chicago when he casually asked his boss

whether the hotel chain could use his skills and

knowledge elsewhere. Soon after, Billing was offered

a position in Kenya, bringing Fairmont’s new properties

in the African country up to world-class standards

through training and technology without losing the

distinctive Kenyan character. Billing jumped at the

opportunity, but he also recognizes the challenge of inculcating Fairmont’s deep values

of customer service, environmentalism, and empowerment into another culture. “It’s a

little bit of hotel culture shock . . .

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