Organizational Behavior: An evidence-based guide for MBA students 3031313550, 9783031313554

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Ning Hou James A. Tan Gustavo Valdez Paez Editors

Organizational Behavior An Evidence-based Guide for MBA students

Organizational Behavior

Ning Hou • James A. Tan • Gustavo Valdez Paez Editors

Organizational Behavior An evidence-based guide for MBA students

Editors Ning Hou Department of Management & Entrepreneurship St. Cloud State University St. Cloud, MN, USA

James A. Tan Department of Management & Entrepreneurship St. Cloud State University St. Cloud, MN, USA

Gustavo Valdez Paez Department of Art St. Cloud State University St. Cloud, MN, USA

ISBN 978-3-031-31355-4    ISBN 978-3-031-31356-1 (eBook) https://doi.org/10.1007/978-3-031-31356-1 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

Preface

The book is written to provide a targeted textbook for MBA students on organizational behavior topics. It is designed to help students understand the importance of organizational behavior and its role in management as well as to provide them with applied knowledge in real-world situations. The authors have selected a series of cases that are relevant to the modern-day business world, emphasizing identifying and solving organizational problems. The cases are also designed to provide real-world situations that students can relate to and learn from. The book is organized by micro, meso, and macro organizational behavior topics. Under micro topics, we discuss individual differences and motivation; under meso organizational behavior topics, we discuss team, decision-making, communication, and leadership; and under macro, we discuss organizational processes. The book started from a project from my MBA Organizational Behavior Class in 2020. To practice the motivation theories, I decided to make the MBA students the subject matter experts in OB topics. Rather than taking quizzes on other reading material, students own the material by writing it themselves (intrinsic motivation). Students have clear expectancy from the effort to performance to outcomes (expectancy theory) and understand the significance of the task (job characteristics theory). I cannot express how exciting and rewarding the process of creating this book has been. All of the contributors come from different countries and backgrounds and provide a unique perspective on each and every one of the topics discussed. The final book is well-balanced between theories and practices because of the various background of the contributing authors. The balance makes it easy to fit into any educational and teaching system. It has been three years since the first draft of the book, and the process is a real joy of coaching, mentoring, and collaborating. I would like to thank the whole cohorts of spring 2020 and spring 2022 MBA students for their early work on the book. Students from Spring 2020 SCSU MBA cohort include (in alphabetical order of last names): James Barnett, Jacob Bjorn, Daniel Britz, Michael Hamer, Bryan King, John Matejka, Jeffrey Merriman, Thad Olson (author of Chap. 6), ByungChul Park, Kalie Schuster, Steven Sitek, Peter Sorensen, Travis Stewart, Lisa Vendela. v

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Students from Spring 2022 SCSU MBA cohort include (in alphabetic order of last names): Raunak Kuikel, Josiah Kwia (Chap. 1 author), Nicholas Lengyel (Chap. 2 author), Haseena Mili, Ofem Ofem (Chap. 5 author), Linsey Rachel, Bishnu Sharma, Mama Toure (Chap. 2 author). I would also like to extend my sincere appreciation to my parents, Jing Sui and Shuli Hou, who provided unlimited support throughout the project and my life. I can’t express enough gratitude for their caring, patience, and guidance! This is a true collaboration and a wonderful experience! St. Cloud, MN, USA

Ning Hou

Contents

1

 Introduction to Organizational Behavior����������������������������������������������    1 Josiah Kwia

Part I Micro Organizational Behavior Topics 2

Individual Difference ������������������������������������������������������������������������������   23 Nicholas R. Lengyel and Mama N. Toure Ep Camara

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Motivation������������������������������������������������������������������������������������������������   65 Julie Weber-Kramer

Part II Meso Organizational Behavior Topics 4

Teams in the Workplace��������������������������������������������������������������������������   89 Ye Li

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Decision Making��������������������������������������������������������������������������������������  131 Ofem E. Ofem and Yuxi Wang

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 Communication, Conflict, and Negotiation ������������������������������������������  157 Thad C. Olson

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Leadership������������������������������������������������������������������������������������������������  183 Lu Zuo

Part III Macro Organizational Behavior Topics 8

Organizational Processes������������������������������������������������������������������������  217 Xiaotian Dai

Index������������������������������������������������������������������������������������������������������������������  243

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About the Editors

Ning Hou  is an Associate Professor at the Department of Management and Entrepreneurship, St. Cloud State University. Her research interests include personalized targeting on social media, personal data value worth, and decision-making biases. Ning’s favorite class to teach is Organizational Behavior, where she collaborated with all the students to turn ideas into books, cases, and research projects. James  A.  Tan  is a Professor of Management at St. Cloud State University. He has published research in journals such as the Journal of Management and the Journal of Applied Psychology. His research interests focus on the impact of individual difference variables on various organizational outcomes. Gustavo Valdez Paez  is a Research Assistant, DJ, Audio/Video Producer, and an Art Major at St. Cloud State University. He participated in research related to organizational behavior and published in journals such as the International Journal of Intercultural Relations and the Journal of International Students. His interest in organizational behavior began in 2014 when occupying a hotel in southeast Mexico and started working with groups of international volunteers.

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Chapter 1

Introduction to Organizational Behavior Josiah Kwia

Abbreviations Capt. Cheng HR HRT Liu NFL NHL OB

Captain Chengquan Human Resources Human Relations Theory Liu Guiduo National Football Association National Hockey League Organizational Behavior

Massacre in the Pacific: A Personal Account According to Massacre in the Pacific: A Personal Account, “Most people live fairly rule-bound lives and maintain the belief that their fellow human beings, on the whole, do likewise. They are firmly convinced that being ordinary is a basic human condition, that on the whole, both good deeds and evil doings are of the banal kind.” Massacre in the Pacific: A Personal Account (Qiang, 2019) illustrates that there are exceptions to the rule. Liu led a group of crewmen to hijack the ship during the Lurongyu voyage in the Chile Sea on 16 June 2011. Eleven crewmembers ended up murdering all the other twenty-two fellow crewmembers, and it all started with a conversation between Liu and Captain Cheng about a request to return home. After 4 months of fishing, Liu realized the promised 45,000 yuan plus bonus compensation was a loophole in the contract. They were not going to get as nearly as the promised 90,000 yuan for 2 years of fishing. Instead, they were only getting 25 cents per pound of squid they fished, which means the hard work won’t even cover the money he spent on the cigarette he was sharing with his fellows. On top of that, the condition of the boat was terrible. Everyone had to work over 18 h a day on average, under the strong J. Kwia (*) Herberger Business School, St. Cloud State University, St. Cloud, MN, USA e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 N. Hou et al. (eds.), Organizational Behavior, https://doi.org/10.1007/978-3-031-31356-1_1

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light, during the night. The only belief that kept them working was the money they planned to bring back for their families. At that moment, their belief was crushed by reality. Liu believed the greedy company was exploiting their labor with extremely unfair compensation, and they used an unclear contract to lure them on board. He was determined to return home and file a lawsuit, but Capt. Cheng refused to do so and won’t allow Liu to return home himself either because he was undocumented (Liu’s status as an undocumented individual prohibited him from being transported on any other vessel because it would be considered people smuggling). Liu was an ordinary farmer before boarding, without any criminal background. His fellow crewmen said he always treated people warmly, and he seemed generous and righteous, with imperceptible shrewdness. He learned to fish squid quickly; he was very productive, and he taught fellow crews his tricks to fish faster. His charisma helped him emerge as a leader among his crewmembers, who later became the leader of the massacre. He persuaded a group of fellows to seize the captain’s cabin to force the captain to return home after he realized he otherwise wouldn’t be returning home. With a series of misunderstandings, existed conflict among the crewmembers, and deviance among small groups due to relative relations and hometowns, the ship’s cook was killed unexpectedly. Crewmembers, believing there would not be another killing, decided to pretend the cook fell into the sea rather than take responsibility. To prevent further interference or revenge, Liu and the fellows disabled the ship’s communications and locked away knives, lifeboats, and life jackets. Later, Liu learned that the ship consumed fuel abnormally fast and malfunctioned. An uprising was rumored to be planned by Capt. Cheng’s chief engineer and others. Following the death of the first crew member, the relationships among members were tense, and division among the remaining crew members was created. There was no trust or transparency, and there were no rules that would work except violence. To avoid becoming victims, other members of the crew plotted against or became willing participants in Liu’s plan. As a result of Liu’s persuasive leadership and manipulation, the mutineers killed all crew members they believed revolted. Even one of Liu’s crewmen was among the victims, since Liu was unsure of his loyalty. New groups were divided based on whether individuals had killed other people, and in the end, Liu made sure all that was alive participated in the killings. To avoid being arrested, Liu suggested blaming the deceased crew members. But, again, there was not enough trust among them. After investigation, all survivors of the Lurongyu voyage were found guilty, and among them, six were sentenced to death. This case raises some questions about organizational behavior. Why did they choose to get on board in the first place? Would they take different actions if the company provided explanations after they realized the injustice and unfair treatment from the company? Would a strike or negotiation be helpful under the circumstance? Should the organization be held responsible for failing to follow protocol? How did the work condition impact their decisions? Was the massacre preventable with better leadership? Was the massacre preventable with better communication? Did peer

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pressure influence the participation of all crew members? In what ways did group norms and statuses influence individual behavior? What role did cultural differences play in the incident? Are unethical decisions more a function of the decision maker’s personal characteristics or of the environment in which the decision maker operates? Note. Certain names have been changed to make them easier to read.

1.1 Organizational Behavior 1.1.1 What Is Organizational Behavior? Organizational behavior (OB) is a systematic approach that studies the behavior of individuals, groups, as well as the relationship between people and organizations. According to Robbins et al. (2014, p. 8), it involves “[a] field of study that investigates the impact that individual groups and structure have on behavior within organizations, for the purposes of applying such knowledge towards improving an organization’s effectiveness.” It can be divided into three levels: micro (individual), meso (group), and macro (organization-wide), according to Ashkanasy and Dorris (2017). This book focuses on specific aspects of OB: individual differences, motivation, teams, decision making, communication, leadership, and organizational processes. 1.1.1.1 OB Versus HR: What’s the Difference? In organizational behavior studies, the focus is on how employees interact and behave within the organization, while in human resource management, the focus is on procedures related to human capital, such as recruiting, selection, compensation, and training. Employees can benefit from the proper design of HR procedures, which enhance organizational behavior practices. For instance, designing a strategic compensation system that motivates employees can enhance employee satisfaction, reduce turnover rate, and improve productivity; designing a recruitment practice with diversity awareness can reduce discrimination; applying effective communication tools can improve the positive perceptions and attitudes of employees. 1.1.1.2 OB Under the COVID-19 Pandemic The COVID-19 global pandemic put most organizations through a quick adaptation process. Those that evolved survived, but many more went out of business. This proves that organizations that are successful are capable of changing and developing new ways of operating (Hannum, 2021). Learning from a change or crisis can be difficult, but understanding the interactions within an organization will give us the ability to perform the necessary changes.

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1.1.2 Why Do We Study OB? 1.1.2.1 Scientific Management In 1911, Frederick W.  Taylor developed the concept of scientific management, which is commonly referred to as Taylorism. Based on the scientific method, the study described several management principles that could be applied to industrial facilities to increase their productivity and efficiency. An assertion at the start of the book, The Principles of Scientific Management, declares that the principal objective of management should be to contribute to “the maximum prosperity for the employer, coupled with the maximum prosperity for the employee” (Taylor, 1911, p. 10). Rather than forcing employees to work hard, Taylor argued that optimizing how they carry out their work would be more effective (Ward, 2022a, b). Taylor emphasized the importance of simplifying and improving work tasks to increase productivity. The supermarket industry utilizes Taylor’s concept of specialization and division of labor to achieve its objectives. For instance, some people specialize in inventory management, grocery clerks, and production clerks. Through this method, tasks are broken down into small steps, with each individual focusing on how to accomplish their particular set of steps in the most effective manner. While Taylorism promotes a high degree of specialization, it differs from modern conceptions of the ideal workplace. Additionally, Taylor pointed out the importance of workers and managers working together to maximize their potential. Using the lessons learned from his workplace experiments, Taylor (1911) developed several scientific management principles, including (1) Choosing methods based on science rather than “rules of thumb,” (2) Assignment of jobs based on the abilities of the workers, (3) Monitoring employee performance, and (4) Distributing the workload among managers and employees. 1.1.2.2 Human Relations Theory Human Relations Theory (HRT; Mayo, 1924) takes a more holistic approach to the work environment by treating it naturally, communicating the big picture, empowering employees with increased responsibility, training them appropriately, and rewarding their achievements. Rather than focusing on efficiency and treating workers as machines, it considers their participation and well-being as an important part of the organization. Mayo’s human relations theory and Taylor’s scientific management theory differ in several aspects. Scientific management theories perceive employees as robots, as opposed to Mayo, which believes that employees are individuals and should be viewed as such. In addition, Taylor argues that incentives motivate employees, whereas Mayo argues that human relations have a greater influence on the output of an organization than economic conditions. Further, scientific management policies impose rules on employees, whereas human relations

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policies actively foster employee involvement and relationships that are conducive to success. Lastly, Mayo’s human relations theory emphasizes the importance of group effort, while Taylor’s scientific management theory emphasizes individual efforts.1 Hawthorne Effect In the 1920s, Elton Mayo and Fritz Roethlisberger conducted the Hawthorne studies, which contributed substantially to the development of human relations (Mayo, 1933; Roethlisberger & Dickson, 1939). In their initial study, researchers examined the effect of physical conditions with respect to workers’ productivity, such as lighting, but found that one of the most influential factors was whether they were observed by others. The Hawthorne effect describes individuals who perform better when they are noticed, watched, and supervised by researchers or supervisors. The research conducted by Mayo and Roethlisberger has changed the way organizations manage and view their workers.

1.1.3 Chapter Synopsis This section gives you a preview of the topics for the rest of the book. One aspect of each of the following topics impacted by the pandemic are shared here: how individuals are different; what motivates people in the workplace; how people and group make decisions; how people communicate in the organization; how people work in teams and how to lead; and how organizational processes impact the individuals.

 Henri Fayol developed an approach to managing businesses that have come to be known as Fayolism during his career as a mining engineer, executive, author, and director. The development of modern management is generally attributed to Henri Fayol (Fayol, 1949). Over the course of the twentieth century, his management theories influenced industrial management practices in a significant way. The ideas of Fayol were developed independently of other theories that were prevalent at the time, such as those of Elton Mayo and Human Relations. Fayol outlined the skills needed for effective management in his 14 Principles of Management. Fayol’s management theories are still used today. Besides the Principles, Fayol identified five basic management functions. Among the management functions are planning, organizing, commanding, coordinating, and controlling. Fayol emphasized that managerial skills are different from technical skills. Moreover, Fayol recognized that management is a field requiring research, teaching, and development. Fayol proposed 14 principles and five functions that form the basis of Administrative Theory. A variety of nonacademics shared their experiences and contributed to its progress. Fayol’s Five Functions of Management originated the planning-organizing-leading-controlling framework that remains an influential management framework throughout the world today. 1

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1.1.3.1 Individual Difference: Individual Differences in Experiencing Pandemic-Induced Distress The COVID-19 pandemic became a psychosocial shock globally and led to a chain of stressors that impacted mental health in the general population (Ammar et al., 2020; Tan et al., 2020). Specifically, people with higher levels of neuroticism personality traits are less stable in their emotions and more likely to experience pandemic-­induced distress (Starcevic & Janca, 2022). In addition, they are also less capable of coping with the lockdown (Morales-Vives et al., 2020). 1.1.3.2 Motivation: Flexible Working Hours Flexible working hours and remote working options had been a factor that motivated people to choose the job, while during the pandemic, with all the other factors involved (e.g., children were remote learning from home), the motivation turned into desperation (Dunn et al., 2020). Work-life balance became challenging and a work stressor (Irawanto et al., 2021). The advantage of flexibility diminished during the pandemic, and the effect is experienced more by women (Dunn et al., 2020). 1.1.3.3 Decision Making: Decision-Making Biases During the Pandemic Success in the past can often be projected onto future endeavors, often without taking into account inherent risks or random factors. An individual may suffer from status quo bias if he or she is unable to make rational decisions in light of new information or if they are overly cautious. The same applies to individuals who are strongly committed to conspiracy theories regarding COVID-19. When an explanation was presented by scientists or by the authorities during the pandemic, people found a counterargument to support their belief. Conspiracy theories are frequently influenced by a cognitive bias called confirmation bias. Using this heuristic, individuals are inclined to seek out and evaluate only the information that is compatible with their current belief system. 1.1.3.4 Communication: Online Communication The Covid-19 crisis has highlighted the need for appropriate communication between employers and employees. Online communication has become an important medium, and some practices should be emphasized. For instance, a communication tree can be used to identify who is responsible for communicating important information and what position is involved, consistently maintaining a concise tone throughout communications and developing a schedule for reviewing content as well as a schedule for follow-ups.

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1.1.3.5 Team: Role of Team Members In response to the COVID-19 surge, medical teams need to be revised, and roles have to be readjusted. For instance, to spread expertise across different patients, nontraditional teams were formed, and critical care attendings were shifted into supervisory roles across all different departments to help upskill nurses quickly (Anderson et al., 2020). 1.1.3.6 Leadership: Female Leaders During the Crisis In times of crisis, organizations tend to name female leaders. According to data, countries led by female leaders fared better during the COVID-19 pandemic, with fewer deaths per capita and lower peaks in daily deaths (Coscieme et  al., 2020). Some possible reasons include the likelihood of using more restrictive measures, prioritizing public health over economics, and the focus on social equality. 1.1.3.7 Organizational Process: Organization Changes During the Pandemic Facing the COVID-19 pandemic-induced organizational change, organizations have to take their employees’ experience into consideration. Research demonstrated the importance of transparent internal communication on coping, uncertainty reduction, and improving employee-organization relationships (Li et al., 2021), and the importance of systematic communication on employee experience and organizational identification during organizational changes induced by the pandemic (Sun et al., 2021).

1.2 Organizational Behavior Research To better study the phenomena of organizational behavior, we need to conduct scientific research. This section discussed why it is important to conduct research, how to conduct research, what are the study designs, and the measurement issues in OB.

1.2.1 Why Conduct Research? Research is conducted to understand phenomena, situations, or behaviors, test existing theories and develop new theories by utilizing existing theories, as well as to answer the following questions: “Why,” “How,” “What,” “Which,” or “When.” Scientific research can help us explain and predict organizational behaviors. For

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instance, maybe you are wondering how money can impact our stress. Researchers experimented and statistically proved that counting money, even not your own money, could reduce your perceived stress and pain (Zhou et al., 2009).

Friendly Cashier and Store Sales: Sutton and Rafaeli (1988) Think about a time when you were at a retail store. Did you observe cashiers being friendly (e.g., making small talk) to customers? Do you think having friendly cashiers positively impacts store sales? This was the question Sutton and Rafaeli (1988) had as well. To examine this link, they decided to conduct research to test the thinking that friendlier cashiers lead to higher sales. They hypothesized that store sales would be higher when store clerks were friendlier to customers. That makes sense, right? Who among us wants to deal with a grumpy sales clerk? Initially, Sutton, Rafaeli, and the research team randomly selected 576 convenience stores in the national chain located throughout the United States for observation. What might surprise you was that Sutton and Rafaeli actually found a weak, negative effect. Friendlier cashiers had lower sales. Researchers conducted a follow-up qualitative study after being surprised by the findings and discovered that sales were associated with store pace (e.g., time pressure on clerks and customers). Therefore, pacing led to the appearance of emotions (i.e., friendliness), with busy settings supporting neutral and slow settings supporting positive emotions. So, when you find yourself in a busy checkout line next time, which would you prefer: an efficient cashier who swiftly rings you up with minimal conversation (neutral display), or a friendly cashier who engages in chit-chat with you?  Do you think the study results vary for different chains and different types of stores? How would you examine your theory using the scientific method?

1.2.2 How to Conduct OB Research? An Example Using Greenberg (1990) An OB study starts with the development of questions/hypotheses, followed by the design of a study, the use of the study to test the hypothesis, and finally, the conclusion of the study. 1.2.2.1 Purpose the Questions/Hypothesis Scientists use observations, the information they read on the subject, and input from individuals within the organization to form hypotheses about the relationship between variables. A Hypothesis is a testable statement of your questions, and it can

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be based on observation (inductive) or theory (deductive). A Theory is a coherent explanation of a phenomenon or several phenomena. Maslow’s hierarchy of need theory explains the inner motives of human beings (check out Chap. 3, Motivation for the Theory). A hypothesis is different from a theory in that a hypothesis is directly testable. In the Sutton and Rafaeli (1988) example above, the theory is that emotions affect behavior. The hypothesis is that happy clerks lead to increased sales. We cannot directly test “emotions affect behavior” but can test “positive emotions lead to increased sales.” Formulating Hypotheses Based on the equity theory, when employees perceive they are underpaid, they are likely to perceive the organizational injustice as well as unfairness and redress the inequity by raising the input, for instance, by stealing from the employer (Adams, 1965). To test the theory, Greenberg (1990) conducted a study with the hypotheses: H1: Pay reduction is related to employee theft rate. H2: Having adequate explanations reduces the rate of employee theft. 1.2.2.2 Design the Study There are various Research methods to study organizational behaviors (check out the study design section below for details). As a manager, have you observed your subordinates being unhappy? This would be an example of naturalistic observation. As a manager, you might want to figure out why employees might be unhappy. One way to collect this information is to survey employees. A survey study is one of the most common ways management researchers gain insight into OB. How many surveys have you completed at work? What kinds of questions were included in the survey? Typically, organizations conduct “engagement surveys” to gauge employee satisfaction.

Picking a Design: Quasi-experiment Greenberg was fortunate enough to be able to conduct a “quasi-experimental study.” After losing two large contracts, the host company was forced to temporarily reduce wages by 15% across the board for two of its three plants (Plant A and Plant B). Plant C was unaffected by the contract and was able to keep the same wage. In this case, researchers can examine the effects of different conditions (15% pay cut vs. no pay cut) on employee theft behavior (H1). The decision to wage cut was made by the host company, not the researchers, therefore not a random assignment of the conditions to test hypothesis 1 (quasi-experiment). Plant A and Plant B were the experimental groups with a pay cut, while Plant C was the control group without a pay cut, determined by the company. (continued)

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To test the benefits of adequate explanations on feelings (H2), Greenberg was able to randomly assign the conditions between Plant A and Plant B. In Plant A, a sufficient explanation requirement was assigned at random, while in Plant B, an inadequate explanation requirement was assigned. Employees of company A were consulted about the decision to temporarily reduce their salaries by the company president. The meeting provided detailed explanations of the decision, including the necessary, the impacts, and the policy that everyone shares the pay cut without favoritism. The meeting was evidencebased, thorough, sensitive, and respectful. The researcher anticipated a more moderate response to the pay cut as a result of these explanations. For the study participants, the demographics were provided (e.g., education, tenure) and compared across three plants. Employees from Plant B received an inadequate explanation, where employees were simply told about the pay cut decision by the vice president. For the measure, Greenberg collected actuarial data on employee theft (with the standard formula of the accounting department) before, during, and after the pay cut, as well as self-report data (survey on how adequate the explanations of the pay cut were and on perceived payment equity) to explain the underlying mechanism. One example question for explanation adequacy is “How adequate was your employer’s explanation regarding the basis of your current pay?” and one example question for perceived payment equity is “How fair is your current pay level at work?”

1.2.2.3  Testing the Hypothesis After collecting the data, researchers need to statistically test the hypothesis based on the data. In statistics, there are many types of analysis, with descriptive analysis, diagnostic analysis, predictive analysis, and prescriptive analysis being some of the most common types. The descriptive analysis provides descriptions of the data and can give you a better understanding of the situation. For instance, the Global Workplace Report (Harter, 2022) provided descriptive data in over 100 thousand business units that indicate only 32% of employees are thriving in their overall well-being. The diagnostic analysis provides an understanding of the causes. For instance, researchers investigated one of the factors that impact employee well-being during the pandemic, which is the format of work transitioning into digital (e.g., Juchnowicz & Kinowska, 2021). Other researchers further studied how telework impacts well-­ being through the work-life imbalance (e.g., González Ramos & García-de-Diego, 2022). Mediation analysis is typically used to explore mechanisms. The predictive analysis intends to help us predict future events through the understanding of trends and patterns of current data. Regression analysis could be helpful in predictive analysis. By understanding how risks like 911, the financial

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crisis, and the COVID-19 pandemic as critical job stressors that impact employee well-being (e.g., Ginger, 2020), we can predict well-being challenges with major environmental threats coming. The prescriptive analysis intends to give us evidence-based suggestions for actions. How can we improve employee well-being after we identify the problem, diagnose some of the causes, and predict the issues with a threat? Job demands-­ resource model (JD-R) provides us the evidence-based solutions such as reducing cognitive, emotional, and physical demands as well as increasing social support, autonomy, and feedback as resources (Bilotta et al., 2021). To conduct these analyses, OB researchers use various statistical models and analyses, such as correlation, t-test, regression analysis, mediation, and moderation analysis. It is to be noted that we have to determine the type of specific statistical analysis based on our design.

Hypothesis Testing In this study, Greenberg examined the differences between the three plants as well as the changes within each plant prior to, during, and following the pay reduction. Results demonstrated that employee theft behaviors were significantly higher in the pay-cut plants (Plant A with a 5.7% theft rate and Plant B with an 8.9% theft rate) than in the non-pay-cut plant (Plant C with a 3.7% theft rate). However, the differences were only evident during the periods when pay cuts were implemented, not before or after the cuts. This supported hypothesis 1. To further examine whether the adequate explanations were useful, Greenberg conducted another statistical test, and the results demonstrated that employees in the inadequate explanation group had significantly less understanding of the basis for pay determination and greatest perceptions of pay inequity.

1.2.2.4  Conclude After the data analysis, researchers conclude the study by providing interpretations of the results and discussing the contributions, limitations, and future directions (Table 1.1). Conclusion Greenberg concluded that employees attempt to redress the pay cut by stealing from their employer, and adequate explanations of the pay cut can mitigate the perception of inequity, therefore reducing employee theft incidents.

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Table 1.1  Organizational behavior research elements and examples Concept Why conduct research

What is it? Research helps us test our intuition or existing theory with evidence

Purpose the Research hypotheses are hypothesis developed before the research begins, and they serve as guides

Design the study

Researchers use various study designs to test the hypotheses

Test the hypothesis

A hypotheses test provides a framework for determining the population and evaluating evidence from the sample Researchers conclude the study by providing an interpretation of the results and discussing the contributions and limitations as well as future research directions

Conclude

OB example Do you think having friendly cashiers positively impacts store sales? Sutton and Rafaeli (1988) proposed this question and empirically tested it, but positive emotions were found to have an opposite relationship with store sales Greenberg (1990) wanted to know whether employees would steal when they perceive they are underpaid and what organizations can do to help. So he proposed the following hypotheses: H1: Pay reduction is related to employee theft rate H2: Having adequate explanations reduces the rate of employee theft Greenberg (1990) conducted a quasi-­ experiment to test his hypotheses, comparing the theft rate among the plant without the employee pay cut, the plant with the employee pay cut and inadequate explanation, and the plant with the employee pay cut and adequate explanation Greenberg (1990) compared the employee theft rate among the three plants before, during, and after the pay cut Greenberg (1990) concluded that employees attempt to redress the pay cut by stealing from their employer and adequate explanations of the pay cut can mitigate the perception of inequity, therefore reduce the employee theft incidents

1.2.3  Design Study designs are a critical step to help test your hypothesis. How would you design a study to investigate employee well-being? This section will introduce you to an observational study, survey study, experimental (and quasi-experiment) study, and meta-analysis. Researchers typically adopt more rigorous design procedures when moving from observational to experimental research. Studies with a higher level of rigor typically employ more precise measurements and interventions and seek to minimize the impact of external factors that may affect the study’s results. However, it is very difficult (and hard to get IRB approval for human subjects) to conduct true experiments in real organizational settings.

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1.2.3.1 Observational Research As a method of conducting research, observation is the most primitive (least rigorous). It is nonexperimental and is based on observation (observe as it unfolds) and record (use archive data) of human behavior (individual or group). Some examples include naturalistic observation, structured observation, authoritative opinion, case study, and archival study. In naturalistic observation, people are observed in their natural setting (e.g., classroom or work setting). In structured observation, a small number of behaviors are coded in a quantitative manner. An Authoritative opinion is one that has been formed by an expert in the field. In his early works on management, Henri Fayol, for example, offered his experience and advice as a former industrial manager. Based on their experiences in real-world work environments, Fayol and others suggest that their learning can be adapted to a variety of work environments. A Case Study is intended to provide an in-depth analysis of one situation within one organization from the perspective of the interpersonal dynamics among the members of that organization. Archival studies normally use the data that has been collected already (mostly for other purposes).

Archival Study: Frank and Gilovich (1988) Do you think color affects human behavior? Frank and Gilovich (1988) were interested in studying whether there was some truth to the anecdote that the color black has negative connotations (e.g., “blacklisted,” “blackballed,” “blackmail”). To test whether wearing black uniforms can increase aggressive behaviors, they analyzed NFL and NHL penalty records from 1970 to 1986. In order to measure aggressiveness, researchers used the number of yards and minutes penalized in the NFL and the NHL.  Researchers standardized the number before analyzing it. The study found that black uniforms rank the top in penalties overwhelmingly, therefore indicating more aggressiveness. In the case of teams that switched from nonblack uniforms to black uniforms, the penalty level increased immediately. 1.2.3.2  Survey Study OB researchers are generally interested in determining how predicting factors (such as job satisfaction) are related to criterion factors (such as turnover). In survey research, variables are typically measured by questionnaires. An examination of employee satisfaction levels (from a questionnaire) with employee turnover levels (from company records) can be used to determine whether the variables are correlated. This method differs from experimental methods in that there is no alteration or manipulation of the variables and no random assignment of the various conditions. Specifically, as a manager, you would not induce job dissatisfaction in one set

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of employees and then see if they quit; you would also need to induce job satisfaction in another set of employees to see if they quit. Instead, you would gather information about current satisfaction levels and see if these impact future quit rates.

Survey Study: Frank and Gilovich (1988) Before Frank and Gilovich (1988) tested the relationship between the color of the uniform with the actual penalty data, an experiment was conducted to examine whether the general preferences people have for specific colors are also applicable to uniform colors. Researchers used the “naïve” subjects who were not familiar with NFL or NHL to avoid the impact on team reputation and only focus on the color factor. Participants had to rate all team uniforms from NFL and NHL on various scales: “good/bad, timid/aggressive, nice/ mean, active/passive, and weak/strong.” All the identifiable information (e.g., name of the team, home city, player) on the uniforms was removed. Several dimensions (e.g., good/bad, nice/mean, and timid/aggressive) were combined to form the “malevolence” index, and results indicated there was a greater rating of malevolence for black uniforms than for nonblack uniforms in the results.

1.2.3.3  Experimental Study While survey studies can help us find out the relationships between the variables, experimental studies can help us to examine the causal relationship of variables. Experiments usually involve the manipulation of certain variables to test the impact of this variable (i.e., independent variable) on other variables (i.e., dependent variable). The variance of an independent variable is not determined by other variables in the study, while a dependent variable represents the effect and the variance of the independent variable is determined by the changes in its value. By analyzing the effect of the independent variable (i.e., the treatment), researchers have to divide the participants’ sample into an experimental group (received treatment) and a control group (without treatment). For example, a drug manufacturer wants to examine the efficacy of a new vaccine. The control group will receive a placebo (e.g., saline solution), while the experimental group will receive the experimental vaccine. The manufacturer will then compare the two groups on various outcomes (e.g., sickness rates, the severity of illness, time to recover, etc.). If the experimental group showed better outcomes compared to the control group, the manufacturer might use these results to bolster their claim of “vaccine effectiveness.” Experimental studies on OB concepts can be tested in a lab (e.g., through simulation) or in the field (i.e., in the actual organization). For instance, the organization would like to know whether a newly designed manager training in human relations (independent variable) can improve the leader-follower relationships, managers can be randomly assigned into new training group (experimental group) and traditional training group (control

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group), then measure the leader-follower relationships (dependent variable) after the training to determine. Most of the time, it is hard to fulfill the true experiment standard using random assignment. Even if you can, in the training effectiveness example, it is very difficult, if not impossible, to prevent people from different conditions from talking to each other, thereby contaminating the control group. Exchanging information between experimental and control groups is known as the diffusion of treatments. Therefore, quasi-experiment is an effective alternative way to study OB concepts where groups were divided based on other factors (e.g., work schedule). Experiment: Frank and Gilovich (1988) After determining that black uniform teams did show more aggressiveness, Frank and Gilovich (1988) were interested in whether the biased judgments of referees caused the reported penalty data. That is, is the view that players wear aggressive uniforms due to the referees’ perceptions that the players are more aggressive? They designed an experiment, asking participants to watch a videotaped “staged” football game with manipulation of the uniform color (black vs. white). Researchers taped two “identical” (in their best effort) football games with only one difference, which is the color of the defensive team uniforms (offensive teams wore red in both tapes). During the study, participants were asked to assess the football plays as referees and were surveyed regarding their perceptions of the defensive team’s aggressiveness as well as their likelihood of penalizing the defensive team. The results indicated a significant tendency for players wearing black uniforms to be penalized more than those of their rivals. There was also a perception that the black-uniformed team was more aggressive. Therefore, the results supported the “social perception” interpretation.

1.2.3.4  Meta-analysis There is a lot of research being published (or not published), and results sometimes contradict each other. How do you make sense of all these contradictory results? For example, should you floss every day (Silva et al., 2022)? Your dentist probably asks every time you visit if you floss. There have been numerous research published looking at the effect of flossing on dental health. Some may say flossing reduces gingivitis, while others say it has no impact at all. Which research should you believe? To answer this question, we turn to meta-analysis. Meta-analysis is a statistical technique that tries to summarize all the information available. One reason there are contradictory results is that errors (e.g., the sample included predominantly men, small sample sizes, etc.) cannot be 100% eliminated from our research. Meta-­ analysis tries to reduce the impact of these errors and thus shows us “true” relations among the variables.

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Job Satisfaction on Job Performance Meta-analysis: Judge et al. (2001) Since the human relations movement, researchers have been interested in learning whether satisfied employees perform better. There have been numerous empirical studies across different cultures, industries, and different samples. To conduct the comprehensive quantitative review, Judge et al. (2001), based on the electronic database, conducted a search from 1967 to 1999 for published articles, doctoral dissertations, cited but unpublished manuscripts, as well as reports from government agencies. They set rules for inclusion. The research requires using employed adults as samples, as well as measuring individual satisfaction and performance (as opposed to group levels). They ended up having 312 samples with a combined study sample size of 54,417. After coding variables, the correlations observed were corrected for sampling errors and unreliability. A moderate correlation coefficient demonstrated that job satisfaction and performance are related to the most focal attitude about the job. The study also found the link between job satisfaction and job performance was related to job complexity and discussed how with less situational constraints, attitude might affect behavior more stronger.

1.2.4  Measurement Most of the designs in the previous section involved the measurement of the variables. For instance, if you want to study leadership effectiveness, how would you measure the concept? How do you know that the data you are collecting is good (i.e., quality data)? What standards do you use to determine if something has “quality?” When you are at the grocery store, how do you know the organic butter you are buying is organic? There are certain standards the manufacturer is required to follow to ensure that the product is actually organic. In the same way, we have to follow certain standards to show that the data we are collecting meets standards. The two concepts that we use to show that the collected data has quality are reliability and validity. This section gives you an overview of measurement-related concepts. Reliability is normally describing consistency, while validity normally describes accuracy. For example, using a weight scale, if the scale shows that Ann is around 100 pounds every time, it is consistent, and it shows high reliability. Still, it doesn’t necessarily reflect Ann’s “real” weight, which is around 130 pounds. The ability of the weight scale to reflect Ann’s real weight is validity, which is whether this scale can accurately reflect Ann’s weight. There are many types of reliability as well as validity. For instance, we can test the consistency over time (test-retest reliability). In the example above, Ann weighs herself daily for a week and her weight, while it fluctuates, is pretty consistent, around 95–105 pounds (i.e., test on day one and retest daily); or we can test the agreement across different people, and (interrater reliability). Have you ever watched one of the many talent reality shows (e.g., American Idol, America’s Got Talent) and seen the “judges” give their opinions? How often do they agree with each other? How often do they disagree? The extent to which they agree with each other is interrater reliability.

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As for validity, it can measure whether a test is measuring the concept it is intended to measure, which is called construct validity, or it can measure whether the results really reflect the outcomes of the variable, which is criterion validity. Sometimes looking at the data might lead us to think there is causation between two variables. For instance, data showed when more people are getting vaccinated, there are more COVID-19 cases (e.g., Australian Institute of Health and Welfare, 2021). This is a correlation, but does that mean that vaccines cause COVID cases? NO! Then what are some possible explanations? This data could reflect that when there are more COVID-19 cases, people are more likely to get the vaccine. Or, there might be some factors that impact both vaccine rate and COVID-19 cases. For instance, if the government lifts the mask requirements, people are probably going to get vaccinated, but this decision could also lead to more infections. If there are more incentives for vaccinated individuals, such as fewer traveling restrictions or the ability to gather in public, people are more likely to get the vaccine, while there’s also a possibility that more people can get infected by the COVID-19 virus. So, please keep in mind: “correlation is not causation.” (Table 1.2). To conclude, a good understanding of organizational behaviors is essential to organizational success. Systematic theories and studies help organizations optimize efficiency while taking care of their employees, the most important capital. This can be seen in stark contrast to the outcome of “The massacre in the Pacific” (Qiang, 2016), where a lack of appreciation combined with ineffective leadership led to disastrous consequences. Lack of appreciation led to a breakdown in morale and resulted in a catastrophic event that has served as a warning for workplace culture ever since. As a future leader, you must keep the scientific spirit in mind and always put people first. Table 1.2  Organizational behavior research design examples Concept Observational research

Survey study

Experiment study

Meta-analysis

What is it? Studies that are based on observation (observe as it unfolds) and record (use archive data) of human behavior (individual or group). Studies that are based on surveys results. There is no manipulation of variables or random assignment of conditions. Studies that usually involve manipulations of variables and randomization of conditions.

Meta-analysis is a statistical technique that tries to summarize all the information available from previous studies.

OB example Frank and Gilovich (1988) examined black uniforms’ influence on aggressive behavior using official penalty records from NFL and NHL. Frank and Gilovich (1988) investigated whether general color associations apply to uniform colors by asking participants filling out surveys. Gilovich and Frank (1988) wanted to investigate whether referee bias resulted in black uniform penalties. They manipulated uniform color (white vs. black) in the “staged” football games and recorded participants’ tendency to give penalties. Judge et al. (2001) utilized a meta-analysis to examine the relationship between job satisfaction and job performance.

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References Adams, J. S. (1965). Inequity in social exchange. In L. Berkowitz (Ed.), Advances in experimental social psychology (Vol. 2, pp. 267–299). San Diego, CA: Academic Press. Ammar, A., Chtourou, H., Boukhris, O., Trabelsi, K., Masmoudi, L., Brach, M., et  al. (2020). COVID-19 home confinement negatively impacts social participation and life satisfaction: A worldwide multicenter study. International Journal of Environmental Research and Public Health, 17, 6237. https://doi.org/10.3390/ijerph17176237 Anderson, B. R., Ivascu, N. S., Brodie, D., Weingarten, J. A., Manoach, S. M., Smith, A. J., et al. (2020). Breaking silos: The team-based approach to coronavirus disease 2019 pandemic staffing. Critical Care Explorations, 2, e0265. Ashkanasy, N.  M., & Dorris, A.  D. (2017, March 29). Organizational behavior. Oxford Research Encyclopedia of Psychology. https://oxfordre.com/psychology/view/10.1093/ acrefore/9780190236557.001.0001/acrefore-­9780190236557-­e-­23 Australian Institute of Health and Welfare. (2021). The first year of COVID-19 in Australia: Direct and indirect health effects. Australian Institute of Health and Welfare. Bilotta, I., Cheng, S., Davenport, M.  K., & King, E. (2021). Using the job demands-resources model to understand and address employee well-being during the COVID-19 pandemic. Industrial and Organizational Psychology, 14, 267–273. Coscieme, L., Fioramonti, L., Mortensen, L. F., Pickett, K. E., Kubiszewski, I., Lovins, H., et al. (2020). Women in power: Female leadership and public health outcomes during the COVID-19 pandemic. MedRxiv. Dunn, M., Stephany, F., Sawyer, S., Munoz, I., Raheja, R., Vaccaro, G., & Lehdonvirta, V. (2020). When motivation becomes desperation: Online freelancing during the COVID-19 pandemic. Fayol, H. (1949). General and Industrial management (Trans. C. Stores). Pitman. (Orginally published in 1916.) Frank, M. G., & Gilovich, T. (1988). The dark side of self- and social perception: Black uniforms and aggression in professional sports. Journal of Personality and Social Psychology, 54(1), 74–85. https://doi.org/10.1037/0022-­3514.54.1.74 Ginger. (2020, April). COVID-19: Four radical changes in U.S. worker mental health needs. https://www.ginger.io/resources. González Ramos, A. M., & García-de-Diego, J. M. (2022). Work–life balance and teleworking: Lessons learned during the pandemic on gender role transformation and self-reported well-­ being. International Journal of Environmental Research and Public Health, 19, 8468. Greenberg, J. (1990). Employee theft as a reaction to underpayment inequity: The hidden cost of pay cuts. Journal of Applied Psychology, 75, 561–568. Hannum, L. (2021, June). 7 strategies for effectively managing organizational change. Beehive. https://beehivepr.biz/7-­strategies-­for-­effectively-­managing-­organizational-­change/ Harter, J. (2022, April 25). U.S. employee engagement slump continues. Gallup.com. Retrieved October 25, 2023, from https://www.gallup.com/workplace/391922/employee-­engagement-­ slump-­continues.aspx Irawanto, D.  W., Novianti, K.  R., & Roz, K. (2021). Work from home: Measuring satisfaction between work–life balance and work stress during the COVID-19 pandemic in Indonesia. Economies, 9, 96. Juchnowicz, M., & Kinowska, H. (2021). Employee well-being and digital work during the COVID-19 pandemic. Information, 12, 293. Judge, T. A., Thoresen, C. J., Bono, J. E., & Patton, G. K. (2001). The job satisfaction-job performance relationship: A qualitative and quantitative review. Psychological Bulletin, 127, 376–407. Li, J. Y., Sun, R., Tao, W., & Lee, Y. (2021). Employee coping with organizational change in the face of a pandemic: The role of transparent internal communication. Public Relations Review, 47, 101984.

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Mayo, E. (1924). The basis of industrial psychology. Bulletin of the Taylor Society, 9, 249–259. Mayo, E. (1933). The human problems of an industrial civilization. New York: MacMillan. Morales-Vives, F., Dueñas, J.-M., Vigil-Colet, A., et al. (2020). Psychological variables related to adaptation to the COVID-19 lockdown in Spain. Frontiers in Psychology, 11, 565634. Qiang, D. (2016, January 14). “Self-reported by the people who experienced the Pacific” Escape. Esquire. Retrieved January 12, 2023, from https://web.archive.org/web/20170814112318/ http:/www.esquire.com.cn/2016/0114/233205.shtml Qiang, D. (2019, December 3). Massacre in the Pacific: A personal account by Du Qiang. Words Without Borders. https://wordswithoutborders.org/read/article/2019-­12/ december-­2019-­true-­crime-­massacre-­in-­the-­pacific-­personal-­account-­du-­qiang/ Robbins, S. P., Judge, T. A., Millett, B., & Boyle, M. (2014). Organisational behaviour (7th ed.). Pearson Education. Roethlisberger, F. J., & Dickson, W. J. (1939). Management and the worker. Cambridge, MA: Harvard University Press. Silva, C., Albuquerque, P., de Assis, P., Lopes, C., Anníbal, H., Lago, M. C. A., & Braz, R. (2022). Does flossing before or after brushing influence the reduction in the plaque index? A systematic review and meta-analysis. International Journal of Dental Hygiene, 20, 18–25. Starcevic, V., & Janca, A. (2022). Personality dimensions and disorders and coping with the COVID-19 pandemic. Current Opinion in Psychiatry, 35, 73–77. https://doi.org/10.1097/ YCO.0000000000000755 Sun, R., Li, J.  Y. Q., Lee, Y., & Tao, W. (2021). The role of symmetrical internal communication in improving employee experiences and organizational identification during COVID-19 pandemic-induced organizational change. International Journal of Business Communication, 2021, 23294884211050628. Sutton, R. I., & Rafaeli, A. (1988). Untangling the relationship between displayed emotions and organizational sales: The case of convenience stores. Academy of Management Journal, 31(3), 461–487. https://doi.org/10.5465/256456 Tan, W., Hao, F., McIntyre, R.  S., Jiang, L., Jiang, X., Zhang, L., et  al. (2020). Is returning to work during the COVID-19 pandemic stressful? A study on immediate mental health status and psychoneuroimmunity prevention measures of Chinese workforce. Brain, Behavior, and Immunity, 87, 84–92. Taylor, F. W. (1911). The principles of scientific management. Harper Brothers. Ward, P. (2022a, September 1). Management theory of Henri Fayol: Summary, examples. NanoGlobals. Retrieved January 9, 2023, from https://nanoglobals.com/glossary/ henri-­fayol-­management-­theory/ Ward, P. (2022b, August 15). Frederick Taylor’s principles of scientific management theory. NanoGlobals. Retrieved September 20, 2022, from https://nanoglobals.com/glossary/ scientific-­management-­theory-­of-­frederick-­taylor/ Zhou, X., Vohs, K. D., & Baumeister, R. F. (2009). The symbolic power of money: Reminders of money alter social distress and physical pain. Psychological Science, 20, 700–706.

Josiah Kwia  is a first-generation student from Liberia. He has a Bachelor of Science in management and a Master of Business Administration from the Herber Business School at SCSU. His experiences in health services, retail, and fast-food restaurants give him a unique perspective on organizational behavior. At present, Josiah is employed by Sevita Health as Director of Program Management. In his spare time, Josiah enjoys writing short stories and poetry. Throughout his educational and professional career, Josiah hopes to serve as a source of inspiration for his siblings, nephews, and nieces.

Part I

Micro Organizational Behavior Topics

Chapter 2

Individual Difference Nicholas R. Lengyel and Mama N. Toure Ep Camara

Abbreviation AC ASA ASVAB CC CPI CSE CWB CWT EI ICT JDI LMX LOC MBTI MMPI MOS NC OB OCB OCEAN PE PG PJ PO POS

Affective Commitment Attraction-Selection-Attrition Armed Services Vocational Aptitude Battery Continuance Commitment California Psychological Inventory Core Self-Evaluations Counterproductive Work Behavior Competence and Worthiness Training Emotional Intelligence Information and Communication Technology Job Descriptive Index Leader-Member Exchange Locus of Control Myers-Briggs Type Indicator Minnesota Multiple Personality Inventory Military Occupational Specialty Normative Commitment Organizational Behavior Organizational Citizenship Behavior Openness, Conscientiousness, Extraversion, Agreeableness, Neuroticism Person-Environment Person-Group Person-Job Person-Organization Perceived Organizational Support

N. R. Lengyel (*) · M. N. Toure Ep Camara Herberger Business School, St. Cloud State University, Saint Cloud, MN, USA e-mail: [email protected]; [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 N. Hou et al. (eds.), Organizational Behavior, https://doi.org/10.1007/978-3-031-31356-1_2

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PS PTSD RFT RJP TCM TMT

N. R. Lengyel and M. N. Toure Ep Camara

Person-Supervisor Posttraumatic Stress Disorder Regulatory Fit Theory Realistic Job Previews Three Component Model Terror Management Theory

Peter Rice: Not the Right Fit On June 6, 2022, Peter Rice, a Disney Executive, was fired from his position reportedly due to him not fitting within the Disney corporate culture (Barnes & Koblin, 2022). The Walt Disney Corporation CEO Bob Chapek demands that the culture at Disney is extremely “buttoned up” and straight-forward in all Disney’s actions (Stiegrad, 2022). Disney believes there is a way to behave and treat others around them without exception. It is expected that all employees exemplify this culture. For many reasons, Peter Rice did not fit this corporate culture. The cultural differences were even addressed in a 2018 YouTube interview with Peter when the purchase of the twenty-first Century was completed by Disney. The interview creates more questions as to why Disney fired Peter. Peter appeared as a very educated, well-­ spoken, passionate executive who seemed to approach the interviewer’s questions in a very conscientious manner. Skills anyone would think would be important at Disney. The firing of Peter was initially met with shock from those in the film industry. Peter was known to be masterful at utilizing corporate politics to advance his career while at the fox, growing quite close to fox owner Rupert Murdoch. This type of slyness in his personality made others within the executive suite uncomfortable. Additionally, he kept many of his movie ideas to himself, and he appeared to value his position over that of his team. Peter was a rising star during his time at twenty-­ first Century Fox, where he eventually was elevated to Chairman of General Content. While at Fox, Peter was credited with spearheading several major blockbuster films, such as Independence Day with Will Smith (Barnes & Koblin, 2022). Uniquely, Peter Rice grew up in the culture at Fox, which was considerably more laissez-faire than at Disney. It was said that Peter Rice brought far too much of Fox’s laissez-­ faire corporate culture to Disney, where many considered it a losing corporate culture style, especially Bob Chapek. How could Peter be the same person in the same position at two different companies and have such wildly different results? Although Peter Rice possessed enough Person-Job (PJ) fit, he lacked an appropriate level of Person-Organization (PO) Fit, which resulted in this outcome. Could it be then an issue of Mr. Rice’s personality versus capability? Additionally, how was Peter even able to survive in an environment for 3 years that did not align with his values? How was he able to maintain his attitude, which many said was exemplary, and performance ability that exceeded many others if he was this misaligned within the company? In this chapter, we will discuss concepts that answer all these questions. After reading this

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chapter, you will have a better idea of how to use fit when searching for employment or when considering candidates.

2.1 Personality Traits Personality is the foundation for how individuals experience the world, and it affects our perception, emotions, motivations, attitude, values, and behaviors. From the evolutionary perspective, the diversity of different personalities is essential for survival and evolution as a whole species (Buss, 1997). Nature Versus Nurture There is a classic debate about personality: nature versus nurture. To address our curiosity about whether personality is inherited or influenced by the environment, researchers used twin studies to investigate. Identical twins (share all the genes) share more similarities in traits than fraternal twins (share half of the genes on average), which supports genetic information’s influence on the trait. There is also the argument from the other extreme, emphasizing the importance of environments (i.e., nurture). For instance, behaviorism representative, Watson, claimed he could train infants into anything (1924). Researchers nowadays accept the impacts of both biological and environmental factors and have started to shift emphasis to investigating the factors at a deeper level and exploring the interactions of impacting factors. Assessment Researchers use various approaches to learn and understand your personality traits, such as behavioral observation, interviews, projective tests (e.g., Rorschach Inkblot Test), and personality inventory. Measuring through personality inventory is the easiest way, and you can measure through self-report or others’ reports. Initially, the self-report inventory was primarily used during World War I to assess soldiers. Some examples of the inventories include the Minnesota Multiple Personality Inventory (MMPI), the California Psychological Inventory (CPI; Gough, 1957; Gough & Bradley, 1996), Gordon Allport’s Trait Theory of Personality, and Raymond Cattell’s 16 Personality Factor Model. Inspired by Carl Jung’s personality theories, Myers–Briggs Type Indicator (MBTI) was developed and became highly popular. You probably heard it, did it, and reflected on yourself based on your MBTI results. Even though widely known, MBTI is facing many challenges in the science world, with validity, reliability, and comprehensiveness issues. In the following sections, we will introduce you to some academically validated personality concepts, including the Big Five Personality, Locus of Control (LOC), and Self-esteem. Understanding the personality is essential for the workplace, including the understanding of individuals, the understanding of different types of interactions among individuals, and the understanding of how individuals fit into larger contexts.

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2.1.1 Big Five Personality The most prominent, widely validated, and broadly applicable model to describe personality is the five-factor model. The five-factor model was developed empirically, from language analysis (i.e., descriptive-adjective approach; e.g., Allport & Odbert, 1936; Cattell, 1943; Tupes & Christal, 1961; Norman, 1963; Goldberg, 1990) to statistical analyzing of large sample’s questionnaire response (Goldberg, 1980; McCrae & Costa, 1985; McCrae & Costa, 1987; Costa & McCrae, 1992; McCrae et al., 1993) to genetic approach (e.g., DeYoung, et al., 2010). Other bodies of theories were also able to converge to the same model, such as child developmental literature and organizational behavior evidence. The naming of the specific dimensions evolved over time, and the modern five-factor model dimensions are Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism (OCEAN as acronyms). Openness refers to the tendency to be interested and try new activities. It is also interpreted as the personality aspect of intelligence as well as culture (McCrae & Greenberg, 2014; Costa & McCrae, 1992). Conscientiousness refers to the tendency to self-control, responsibilities, orderliness, and rule-abiding (Jackson & Roberts, 2017). It has great predicting power on varieties of life outcomes, especially workplace outcomes. Extraversion refers to the tendency to be assertive, dominant, sociable, and energetic (Costa & McCrae, 1992). People who score lower are considered quiet and reserved (McCrae & Costa, 1989). Agreeableness refers to the tendency to be interpersonal. People who score lower in agreeableness can be considered self-centered and ruthless (Costa & McCrae, 1992). Neuroticism refers to how likely an individual is to experience distress. It is the opposite of emotional stability. Higher neuroticism scores tend to correlate with negative outcomes (e.g., psychiatric disorders; Zonderman et al., Stone, & Costa, 1989). Check out the very brief measure of the Big Five Personality traits by Gosling et al. (2003) (Table 2.1). Validity Even though the dimensions were developed in the English language, the model has been tested and verified on construct validity across cultures (McCrae, 2002a, b), across age (e.g., Asendorpf & Van Aken, 2003), and across situations (e.g., academic, workplace, clinical settings, and romance relationships). Research also demonstrated the validity across different forms of rating. For instance, observer rating was also validated (Mount et al., 1994) across sources. Coworker, supervisor, and customer ratings were valid predictors of workplace outcomes and accounted for significant variance beyond the self-ratings (Mount et al., 1994). The model is also a strong predictor for various behaviors and outcomes (details see specific dimensions below). The model contains a comprehensive set of traits which allowed researchers to compare the model with other personality trait models and interpret other trait models using the five-factor model. Research demonstrated meaningful links between the five factors and various measures such as CPI (McCrae et al., 1993), Sixteen Personality Factor Questionnaire (16 PF; Digman, 1990; McCrae & John, 1992), MMPI (Costa et al., 1986), and MBTI (McCrae & Costa, 1989).

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Table 2.1  A very brief measure of the Big Five Personality: Gosling et al. (2003)

Disagree Strongly

Disagree Moderately

1 2 I see myself as: 1 _______ 2 _______ 3 _______

4

5 6 7 8 9 10

_______ _______ _______ _______ _______ _______ _______

Disagree A Little 3

Neither Agree Nor Disagree 4

Agree A Little 5

Agree Moderately 6

Agree Strongly 7

Extroverted, Enthusiastic Critical, Quarrelsome Dependable, Self-disciplined Anxious, Easily Upset Open To New Experiences, Complex Reserved, Quiet Sympathetic, Warm Disorganized, Careless Calm, Emtionally Stable Conventional, Uncreative

TIPI scale scoring ("R" denotes reverse-scored items): Extroversion: 1, 6R; Agreeableness: 2R, 7; Conscientiousness; 3, 8R; Emotional Stability: 4R, 9; Openness to Experiences: 5, 10R.

Reliability The internal consistency reliabilities (e.g., coefficient alpha) were tested to demonstrate the extent of items in the same dimensions measuring the same construct. The coefficients of stability had also been tested to measure whether the results were consistent when you test and retest the personality model. A meta-analysis demonstrated strong coefficients of stability (range from 0.69 to 0.76) and strong internal consistency reliability (range from 0.73 to 0.78; Viswesvaran & Ones, 2000). Genetic Influences Twin studies have been used to investigate the heritability of the Big Five Personality traits. Results from various samples supported the trait heritability (e.g., Jang et al., 1996; Riemann et al., 1997; Yamagata et al., 2006). Meta-analysis of over 100,000 participants of both genders and all ages also indicated that genetics accounts for about 40% of individual differences in personality (Vukasović & Bratko, 2015), and all five traits are equally heritable. There is no significant difference in the heritability of personality traits between males and females (Loehlin et al., 1998). Social Media With the advancement of big data analysis, our digital footprint from social media has become a powerful way to predict personality. Rather than exaggerating and self-idealizing the traits, the evidence demonstrated the robust accuracy of how social media profiles reflect the actual personalities (Back et al., 2010; Liu et al., 2016). Your Facebook algorithm knows you better than your spouse if they collect

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300 likes information (Youyou et al., 2015). For instance, people with higher levels of Openness to Experience have larger networks (Quercia et al., 2012). People with higher Conscientiousness tend to post fewer pictures (Amichai-Hamburger & Vinitzky, 2010). Individuals with higher Extraversion tend to have more activities on social media (e.g., Blackwell et al., 2017). People with higher agreeableness are more likely to display positive emotions in their profile (e.g., Liu et al., 2016). And people with higher neuroticism are more likely to express negativity in their posts (Schwartz et al., 2013). Sex Difference Men tend to score higher in openness and lower in neuroticism, extraversion, conscientiousness, and agreeableness (Schmitt et al., 2008). The most pronounced differences between sex were found in agreeableness and neuroticism. In general, the sex difference in personality traits is robust across different cultures, measures, and data sources (McCrae et al., 2005). The differences were more pronounced in cultures with less sex role differences (i.e., European and American cultures; Costa et al., 2001) and when the measure is explicit compared to implicit (Vianello et al., 2013). Sex difference in Big Five Personality is also more robust than sex differences in cognitive ability (Hyde, 2005). Some important factors related to sex differences in personality include occupational choice. For instance, conscientiousness and agreeableness could be very important traits to be a nurse. Females are more likely to fit this profile and choose nurse as an occupation that fits their personality. Some explanations of the sex difference include the differences in social roles and adaption through evolution, where cultures define certain thinking and behavior between sex (Maccoby, 2000) and sexual selection pressure, physical size differences, and reproduction cost shaped the psychological sex differences (Buss, 1997). Neuroscience is also used in modern days to study personality, and results demonstrated robust biological foundations of sex differences in personality (e.g., Dubois et al., 2018; DeYoung et al., 2010). Stability In general, individuals’ personality traits in the five dimensions stay relatively stable since early adulthood with slight changes. Several longitudinal studies tracked participants’ personalities over the years. For instance, a 45-year longitudinal study demonstrated trait profiles were stable over the interval (Soldz & Vaillant, 1999). Another 40-year longitudinal study found that overall Agreeableness and Conscientiousness increased with age (Soto & John, 2012). Extraversion didn’t show significant change overall, but different facets showed different trends. Over the years, gregariousness decreased, and assertiveness increased. Other studies showed a similar pattern of stability with slight changes. For instance, neuroticism decreases over adulthood (Cobb-Clark & Schurer, 2012; Rantanen et al., 2007). There are a few interesting perspectives regarding stability. First, different individuals’ personalities change differently. Second, the changes across different dimensions of personality within the same person are independent (Soto & John, 2012). Third, in general, adverse life events are not related to intra-individual

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personality change. Fourth, longitudinally, personality traits have a strong predicting power for future life events and economic decisions. Last, it is more meaningful to understand the trends in specific facets (i.e., assertiveness) rather than the overall personality traits. Culture Large-scale cross-cultural studies demonstrated the five-factor model is highly replicable across cultures (Schmitt et al., 2007) with a few exceptions. For instance, Chinese culture doesn’t consistently extract the openness dimension based on indigenous studies (Cheung et al., 2001). Asian and African cultures have less within-­ culture variances (i.e., less heterogeneity of personality traits) than European and American cultures (McCrae, 2002a, b). Geographically, neighboring countries share more similar personality means (Allik & McCrae, 2004). At the country level, Big Five Personality traits are also related to economic prosperity (Lynn & Martin, 1995; McCrae, 2001, 2002a, b). Religion Agreeableness and Conscientiousness (in the Big Five model and Eysenck’s three-­ factor taxonomy) have shown a consistently positive relationship with religion (e.g., Taylor & MacDonald, 1999; see meta-analysis by Saroglou, 2002). Workplace The Big Five Personality traits have been widely studied in organizational settings on perceptions, attitude, behavior, and distal outcomes (check out more details of the organizational outcomes in the last section of this chapter). The following section provides insights into how Big Five Personality traits relate to different organizational outcomes. Neuroticism was found to be associated with the perception of unfairness in the workplace. For instance, job candidates with higher levels of Neuroticism are more likely to perceive unfairness with the personnel selection tests (Truxillo et al., 2006). Employees with higher levels of Neuroticism are more likely to perceive injustice (Shi et al., 2009; O’Neill et al., 2011). Neuroticism is associated with negative emotions, while Extraversion is associated with positive emotions; hence, employees with different levels of Neuroticism and Extraversion are likely to experience different levels of job satisfaction (check out meta-analysis Judge et al., 2002). Openness showed the least correlation with job satisfaction (Judge et al., 2002). There were also studies on how supervisors’ personality traits related to subordinates’ job attitudes. Similarly, supervisors’ Openness to experience was unrelated to subordinates’ job attitudes, while Extraversion and low Neuroticism were related to job satisfaction. Interestingly, supervisors’ higher Conscientiousness was related to lower subordinates’ job satisfaction and affective commitment (Smith & Canger, 2004). Different dimensions of personality traits also show different levels of correlation with a variety of actual behaviors in the organization. For instance, with the motivation to “get along” and be cooperative, Agreeableness demonstrated the

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strongest association with safety behavior (meta-analysis by Beus et  al., 2015). Being sociable and expressive, employees who exhibit a higher level of Extraversion are more likely to provide interpersonal help at the workplace. Research studies supported the positive relationship between Extraversion and Organizational Citizenship Behavior (e.g., Elanain, 2007; Kumar et al., 2009). Being more intellectually curious, employees with higher Openness to experience traits are more likely to conduct innovation behavior (Yesil & Sozbilir, 2013). Researchers demonstrated the dimension of Openness to Experience is the most salient dimension associated with the propensity for innovation (Patterson et al., 2009). As the outcome, different dimensions are associated with different distal organizational outcomes. For instance, individuals with higher Openness to Experience are more likely to be in the entrepreneurial status, where they can keep exploring novel ideas and using creativity (Zhao & Seibert, 2006). Interestingly, Openness to Experience is negatively associated with long-term venture survival; instead, Conscientiousness is the key to long-term venture survival for entrepreneurs (Ciavarella et al., 2004). Conscientiousness is the most salient dimension associated with performance, and the performance is not only limited to academic performance and organizational performance. The meta-analysis studies demonstrated robust correlation across various occupations, performance criteria, and cultures (Barrick & Mount, 1991; Salgado, 1997; Dudley et  al., 2006). Over-decades longitudinal studies also provided evidence of how early adulthood Conscientiousness predicts important work and life outcomes, both for men (Soldz & Vaillant, 1999) and women (George et al., 2011).

2.1.2 Other Traits 2.1.2.1 Locus of Control Locus of control (LOC) can be described as how an individual attributes the outcome of an event, be it within the individual or external factors. This sense of control plays a considerable part in forming an individual’s confidence to deal with adverse events. A person with a high LOC can ascribe the cause of protection from the negative circumstance to the internal self (Miller, 1979). Social learning theory advanced by Rotter in 1954 gave birth to the concept of Locus of Control. Individuals that possess a high internal LOC believe that they have the ultimate control over the events in their life. These individuals are predisposed to perceive outcomes as the result of their own creation. In comparison, individuals who possess a high external LOC believe that destiny, luck, or powerful others are the main origin that controls the outcomes of events in their life (Rotter, 1966).

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Sub-dimensions of LOC Rotter (1966) considered LOC as a unidimensional continuum where an individual’s increase in internal alignment is simultaneously followed by a decrease in the individual’s external alignment. However, other researchers advocated LOC as a multidimensional construct (e.g., Ashkanasy, 1985; Montag & Comrey, 1987). The internal and external orientations are not on one continuum. Instead, they are on different dimensions. This means individuals will have a level of internal LOC and a level of external LOC separately. They can have both relatively high internal and external tendencies, which are independent of each other. Researchers later extend the external dimension regarding chance and powerful others (Levenson, 1973). More recent studies discussed relational attributions beyond internal and external attributions, arguing the importance of interpersonal interactions in organizations from relational perspectives (Eberly et al., 2011). LOC Impact Research studies have proven the beneficial effects an internal control provides and the detrimental effects of an external control on various outcomes, attitude, behavior, performance, and even health outcomes such as depression (Gray-Stanley et al., 2010), job strains (Spector, 1986), and psychological disorders (Cohen & Edwards, 1989). For example, it has been found that a person with a high internal LOC would use this to make more ethical decisions at work versus someone who has a high external LOC. 2.1.2.2 Self-Esteem Self-esteem is an individual’s overall positive evaluation of the self (Gecas 1982; Rosenberg, 1965; Rosenberg et al., 1995). Self-esteem is made up of two distinct components: competence and worth. The competence component, self-esteem based on efficacy, refers to the extent that an individual views themselves as capable and efficacious. The worth dimension, self-esteem based on worth, refers to the amount that an individual believes that they are a person who is valuable (Gecas 1982; Gecas & Schwalbe 1983). Stability of Self-Esteem Longitudinal studies have shown that self-esteem is a stable trait, but by no means is it a sacrosanct trait. Individuals with relatively high (or low) self-esteem at one stage of life are likely to have relatively high (or low) self-esteem decades later. Self-esteem increases during adolescence and wanes in an individual’s old age (Orth & Robbins, 2014). Impact of Self-Esteem High levels of self-esteem will reduce anxiety, anxiety-related defensive behavior, reminders of one’s mortality, and the effect of reminders of mortality on both self-­ esteem striving and death-related thoughts as described by terror management

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theory (TMT), which theorizes that self-esteem is used to control the terror of death (Pyszczynski et al., 2004). Self-esteem is also a predictor of an individual’s ability to find success in life. Studies demonstrate the relationship between self-esteem and multiple outcomes related to success, including marriage, social-networking, physical health, mental help, job satisfaction, and job performance (Orth & Robbins, 2014). Positive Therapy Competence and worthiness training (CWT) is a psychoeducational program that has been shown to enhance self-esteem and is considered a form of positive therapy. CWT focuses on expanding experiences and increasing behaviors that promote a healthy an authentic sense of self-esteem over what is referred to as the “dark side” of self-esteem. The dark side of self-esteem is where an individual has a high sense of worth without any evidence to support that heightened sense, such as a narcissist, or when an individual must rely on external factors to validate their self-esteem instead of validating themselves internally. CWT can eliminate many of the factors associated with the dark side by focusing on the well-being and strengths of the individual versus concentrating solely on the individual’s weaknesses or problems (Zeigler-Hill, 2013).

2.2 Intelligence Intelligence has the greatest effect on the work life of an individual. It will determine the individual ability to perform their job functions and task. It has a greater impact on job satisfaction than any of the other individual difference traits (Farr & Tippins, 2013). In most cases, organizational success depends on the EI amount the leadership and employees possess. Organizations that hire individuals who are high on the EI spectrum will experience significantly higher loyalty, far better sales, less stressed employees, and lower turnover. EI is highly associated with the Big Five Personality measures. EI should not be the only measure that is used for employee selection, but combining EI measurements with personality measurements could be great tool in helping select employees (Ljungholm, 2014).

2.2.1 Cognitive Abilities In an employment setting, cognitive ability is defined as an individual’s ability to learn and perform in educational and organizational settings (Farr & Tippins, 2013). Individuals with a greater cognitive ability are more adapt at learning and performing complex job functions, whereas those with low cognitive ability are more likely to be better at less complex job functions (Higgins et al., 2007). Cognitive ability is

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closely associated with emotional intelligence, which will be discussed later on in this section (Treglow & Furnham, 2020). Strong Predicting Power The cognitive ability test offers the strongest predicting power for an individual’s overall performance and job knowledge within an organization. Cognitive ability tests were first utilized during World War I for job placement for different groups within the US and European militaries (Farr & Tippins, 2013). Today the US Armed Services uses the Armed Services Vocational Aptitude Battery (ASVAB) test as a measurement of cognitive abilities when placing new troops into their Military Occupational Specialty (MOS). These measures are relevant no matter the occupation that an individual holds (Farr & Tippins, 2013). Adverse Impact Although cognitive ability tests are a remarkable predictor of knowledge and ability, they do pose adverse effects on certain groups. In the United States, particularly, marginalized groups have been the most impacted. Primarily Black, Hispanic, and elderly Americans experience the most adverse impact in relation to cognitive ability studies for employment. Many of the cognitive ability measures run the risk of having a heterogeneous bias within them, allowing one group to score significantly higher in relation to another group simply due to the content being examined. This is especially true if an organization uses only one cognitive ability test on possible candidates. Using tests such as these can ultimately run afoul of federal and state laws protecting classes of citizens from discrimination, even if the intention is not to discriminate (Farr & Tippins, 2013).

2.2.2 Emotional Intelligence Goleman’s (1995) book on how emotional intelligence matters more than intelligence quotient (IQ) brought attention to this concept of “emotional intelligence” in popular media and academia. So, what is this concept? vand EI can be used to determine the probability of an individual’s success, but IQ only gauges one’s ability to learn through standardized tests and cannot be trained like EI.  EI is not just the ability to learn new information but more the person’s ability to perceive, such as understanding what others are indicating with their body language. Additionally, EI can be trained and enhanced within an individual. Definition Emotional intelligence (EI) is best defined as “the ability to monitor one’s own and others’ emotions, to discriminate among them, and to use the information to guide one’s thinking and actions” (Salovey & Mayer, 1990, p.189). On top of the “ability model” of EI, which focuses on an individual’s capacity to process emotional information and apply it to social situations, there has been the approach to study EI as a

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“trait,” which incorporates an individual’s behavioral tendencies and self-perceived talents. There is the “mixed model” as well, which is the combination of both individual abilities and traits. EI is essential when hiring, training, leading, and team building within any organization (Petrides & Kokkinaki, 2007; Petrides et al., 2016). EI and Organizational Studies EI has been studied in organizational settings to test the correlations with various work-related outcomes, such as attitude and leadership. The higher EI an individual has, the better they will perform, remain committed, and be satisfied in their current employment. For instance, as customer service representatives, their EI is related with the demand for customer interaction. A meta-analysis demonstrated that EI has stronger predicting power on job attitude on top of cognitive ability and personality (Miao et al., 2017). EI is also a central concept within organizational leadership. Leadership roles require the ability to compel others to do what they need to do. Leaders who lack EI are generally unsuccessful and bring acrimony, hostility, and apathy into the organization (Goleman, 2020). Most leaders who are rated as extremely effective by their subordinates are also found to have a significant number of aspects related to high EI when researched (Weinberger, 2009). Can EI Be Trained? Emphasizing the “ability” perspective of EI, trainings and interventions were developed to improve EI. The meta-analysis demonstrated the importance and effectiveness of EQ intervention on multiple work-related outcomes such as management skills and work satisfaction performance. Another area the EI training has an impact on is social relationships; the better trained a leader is in EI, the higher their ability to form and maintain professional social relationships will become, adding to the well-being of those employed by that leader’s organization. EI training research has shown that training is an effect method to improve the durability of EI within the organization (Hodzic et al., 2018; Mattingly & Kraiger, 2019).

2.3 Values As a student, you will hear much throughout your time in academia about values from professors and fellow students alike. But what exactly are values? And how are they used by individuals to make sound choices? Values are the beliefs about what is important to an individual and serve as a motivational base for our attitudes and behavior (Schwartz, 1992, 2012). They are another psychological tool given to us to help us navigate the various situations we will encounter during our lifetime.

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Fig. 2.1  Schwartz’s basic human value and higher-order continuum. (Source. Adapted with permission from Schwartz, 1992)

2.3.1 The Basic Human Values According to Schwartz (1992), there are ten universal basic human values that can be found throughout every society in the world (check out the table for the ten values and their examples). They are the cornerstones for why people make the decisions that they do. Schwartz’s measuring system is the most widely used method to validate the theory of values (Cieciuch and Schwartz, 2012). Subsequently, it has been discovered that these ten values can be rearranged and grouped together in relation to each other to create the four higher-order values that represent motivational conflicts and compatibilities: Conservation versus openness to change and self-transcendence versus self-enhancement. These arrangements are the ideal fit between the data and theories that have been developed over the past several decades (Schwartz, 1992). Conservation values are the values that motivate to maintain order and safety, which is the opposite to change, while self-­ transcendence values are the values that promote concern for others’ welfare, which is the opposite of motivate to promote self-interest (Schwartz, 2012) (Fig.  2.1; Table 2.2).

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Table 2.2  Schwartz’s model of values and examples (Schwartz, 1992) Value Conformity

Definition The restraint of actions, inclinations, and impulses that are likely to upset or harm others while violating social expectations and norms An individual’s respect, commitment, and acceptance of their own culture and/or religion

OB example In eastern cultures, such as Japan, where the employees will not upset the balance in favor of harmony within the organization Tradition Making decisions based on your religion and what your religion would approve of versus what the organization would want you to decide Security The safety, harmony, and stability of an Choosing to stay with an organization individual’s relationship with society, versus leaving for another because of others, and oneself the stability it provides Universalism Caring not just for those close to an When making decisions for an individual but for the welfare of all organization that take into account the people and nature impact on the environment Benevolence Caring for the welfare of those close to Caring for a terminally ill loved one an individual versus accepting a promotion that would limit the ability to take care of them in their final moments Stimulation Engaging in what we call life Choosing a profession that aligns with your values that allows you to live the life you want to live Self-­ Independent thoughts and actions The ability to act within an organization direction without having to be told that the action is needed Hedonism Pleasure or gratifying the senses Doing something you find enjoyable Achievement Personal success within the society or Working hard to obtain the next desired culture promotion within an organization Power An individual’s social status, control, Acting as the leader within an and ability to dominate over others and organization that has ultimate control resources over the entire direction of the organization, i.e., a CEO

2.3.2 Cultural Differences When an individual is developing their value priorities, what role does culture play in influencing the development of these priorities? Different cultures place more importance on certain values over others (Schwartz, 1992). The Western world greatly values hedonism, which is the value of self-gratification and pleasure. In the West, individualism and “making it big” as a person are constant themes that are culturally reinforced within the prevalent societies, such as the USA, the UK, France, and Germany. In Eastern cultures, a stark contrast to the West, more weight and importance is given to the value of conformity. Conformity is the restraint of actions, inclinations, and impulses that are likely to upset or harm others while violating social expectations and norms. This is very visible in countries such as China, South Korea, and Japan. There is a need and desire to conform to the harmony of the

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group. Although the East and the West have the same values, everything changes when the person selects their value priorities (Mayton et al. 1994).

2.3.3 Value Stability Typically, values are stable (Schuster et  al., 2019). Researchers have found that traditionally expected life events, such as attending a university or changing one’s career, do not have a significant impact on an individual’s values. What does have a major impact on an individual’s value system is notably migration from one’s home and major threats to an individual and/or community (Bardi et  al., 2014). For instance, the financial crisis of 2008 (Sortheix et al., 2019), 9/11 (Verkasalo et al., 2006), and the global COVID-19 pandemic (Daniel et  al., 2022). During these events, the increased possibility of mortality leads to an increase in defending one’s own culture and a decrease in the universalities that are normally seen across the global spectrum of values (Daniel et al., 2022). In the Value project by Daniel and colleagues, they used a natural experiment and tracked the change of value over the duration of over three and a half years using over 2000 Australian adult volunteers. The immediate results indicated that following the global pandemic, an individual’s value on conservation increased, while their value priority on openness to change decreased. Previous studies into other infectious diseases have provided similar results (Helzer and Pizarro, 2011). A key discovery in the research into values shows that values do not die, go extinct, or decay. They ascend and descend in their importance to an individual throughout their lifetime depending on the situation and what the individual values as the most important at that time. For example, people do not prefer hedonism to conformity, they merely elevate different behaviors, such as loyalty or ambition, when they are making their behavior choice selection that draws out the different values they are exhibiting (Mayton et al., 1994).

2.3.4 Value’s Impact An individual’s value priority system affects their attitudes, decisions, and behaviors in various settings. Attitudes Values are utilized to maintain a person’s attitude and, whenever necessary, to boost an individual’s attitude. For instance, personal values impact an individual’s attitude toward civil rights, religion, political affairs, and the choices they will make surrounding these activities (Mayton et al., 1994). Values allow individual to rationalize their independent behaviors and attitudes. For instance, a voter would rely on a traditional value when the select a candidate to vote for, thus allowing for their values to guide their independent political behavior.

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Decision Making Values also impact an individual’s decision-making choices, with one of the most important aspects being ethical decision making. Taking universalism as an example, it is a core value for people to adopt utilitarian philosophies on ethical decisions, to emphasize more on the common good (Payne et al., 2016). Wanting to be ethical is not the sole basis for an individual choosing to make an ethical decision. This is because the same behavior can be attributed to a myriad of different choices. Moreover, it should be seen that most use the basis of being ethical as the justification for their decision (Payne et al., 2016). This distinction is an important one; it helps guide the individual through all of the alternative decisions they may face and allows them to analyze the “right and wrong” decisions they could make, ultimately ensuring that they will determine the right way to behave (Payne et al., 2016). Behavior Personal values also have an influence on individual behaviors, such as whether you would cheat in the classroom, your choice of college major, attend church, participate in political activities (Mayton et al., 1994), and lead a team in the organization (Lord & Brown, 2001). An example of this would be a student selecting a college that has a religious affiliation if they were to have a high level of a traditional value.

2.4 Person-Environment Fit Understanding how an individual’s values affect their behavior and the nature of today’s highly competitive employment market, organizations are constantly searching for that edge to secure the right candidate, with the hope that the candidate remains with the organization in the long term. High turnover rates have cost many organizations an excessive amount of money in training and hiring employees that ultimately terminate their employment within a brief period. To stave off high turnover rates, many organizations have begun to utilize the theories of Person-­ Environment fit in their hiring practices and maintain desired employees. Person-­ Environment Fit (PE) is defined as “the compatibility between an individual and a work environment that occurs when their characteristics are well matched” (Kristof-­ Brown et  al., 2005). The field of PE fit has been extensively studied and implemented by management for the past 100 years, making it one of the most respected and recognized fields of psychological research (Dawis, 1992; Kristof-­Brown et al., 2005). All person-environment fit theories are built upon three basic principles. First, fit theories contend fit is a better predictor of outcomes than the two components by themselves, the person and the environment. Second, fit theories propose that outcomes are at their best when the personal and environmental attributes are compatible, regardless of the level of compatibility. Third, fit theories state that any discrepancy between personal and environmental attributes reduces the ability of a

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positive outcome, regardless of what side the discrepancy happens, the person or the environment (Van Vianen, 2018). Along with being broadly researched, several subtypes of PE fit can be researched to provide an in-depth analysis that provides more specific data on individual-level relationships. These subtypes are used to predict outcomes of both prehire and posthire behaviors. This data can also be used to predict the attraction, intent to hire, performance, and longevity (Kristof-­Brown et al., 2005). Four of the most crucial subtypes are Person-Job Fit (PJ), Person-Organization Fit (PO), Person-Group Fit (PG), and Person-Supervisor Fit (PS) (Kristof-­Brown et al., 2005). Although all of the PE subtypes are undoubtedly important, this section focuses primarily on PO and PJ Fit.

2.4.1 Person-Organization Fit Definition Person-Organization Fit can mean different things to different people. There is not a single steadfast definition that conveniently explains away the complexity that is found in researching PO fit (Barrick & Parks-Leduc, 2019). One succinct attempt establishes a definition that informs us PO fit addresses the “compatibility between people and entire organizations” (Kristof-­Brown et al., 2005). It theorizes that “individuals will be most successful in organizations that share their personalities” (Kristof-­Brown et al., 2005). Measurement Measuring something as complex as PO fit poses quite a methodological challenge for researchers. The use of surveys combined with powerful data analytics has proven to be the most reliable method of measuring PO fit and its effects (Barrick & Parks-Leduc, 2019). But these still have shortcomings. Much of the measuring happens at a location of the employer’s choosing, such as an onsite training facility, online at the beginning of the application process, and even face-to-face with the potential employer. Adding to the already compounded issue is that the candidate could cheat the assessment to amplify their chances of being interviewed or hired. Application in Hiring Current research has proven that PO fit has an incredibly strong relationship with job satisfaction and organizational commitment. The majority of the other work measures have only a moderate fit with PO fit (Kristof-­ Brown et  al., 2005). According to the attraction-selection-attrition (ASA) model, people are likely to remain in organizations comprised of people who are similar to them in values, culture, personality, and interests. People are found to be more motivated to work when the reward fulfills jointly held desires and preferences (Barrick & ParksLeduc, 2019). This model matches almost all selection-oriented PE fit theories and is firmly planted in the idea that people are selected by, attracted to, and most likely

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to remain in an environment comprised of similar people. It is believed that this occurs because individuals are generally more motivated working in an environment where preferences and desires are jointly held by all parties (Barrick & ParksLeduc, 2019). Many organizations have incorporated PO fit into their hiring strategy. PO fit has been a consistent forecaster of contextual performance, contributing to the social and psychological well-being of the company. The intended goal of an employer using the PO fit theory is to provide the ability to find employees who will fit within the organization. Proper PO fit placements provide the potential to also give the company a competitive advantage, with loyal employees going above and beyond their normal job functions to benefit their employer (Kristof-­Brown et al., 2005). Employees with a high PO fit are less likely to leave the organization. Employees with a low PO fit may be hired, but they will eventually leave the organization (Kristof-­Brown et al., 2005). Application of PO fit is equally as challenging as it is to measure. Most interviews happen between strangers who are attempting to make valid assessments of PO fit. The recruiter is attempting to recruit, so they will sell the company, and the individual is attempting to be recruited, so they will sell themselves (Barrick & Parks-Leduc, 2019). A drawback to this style of application is a “similar to me” bias seen in talent recruiters. Recruiters can be heavily influenced by perceptions of PO fit during the selection cycle. In general, these perceptions by the recruiters are not well connected to reality. This is caused by the limited information the recruiter has about the candidate. Most recruiters use information obtained from a short interview with the candidate or organization-controlled recruiting materials (Kristof-­ Brown et al., 2005). Therefore, it causes hires to be more like the recruiter than the organization itself. A method to resolve “similar to me” selections is to perform assessments on the candidates. Application in Training Realistic job previews (RJPs) are a common method utilized by organizations to attract the right candidate. This offers the individual the ability to experience what they would expect working for an organization. For an RJP to be successful in illustrating to a potential candidate, it should use an employee perspective, employee testimonials, and allow the candidate to see the positive and negative aspects of the organization using experience-based information. The organization should not hide the truth about burnout, turnover, and longevity. They must be honest with the candidate about all the data presented (Tran et al., 2020). RJPs help lower overbloated expectations regarding the work and culture of the organization, increase job performance, and have been found to have some degree of increased job survivability (Premack & Wanous, 1985). There are several new questions regarding the application of PO fit in job selection post the COVID-19 pandemic. Thanks to advances in modern technology, many people are able to work from home instead of heading to the office. The “Great Resignation” period has seen many individuals choose to leave their place of employment for greener pastures elsewhere if the organizations do not change their

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corporate climate (Gittleman, 2022). There is a dramatic increase in the demand for more flexible schedules, better benefits, and more respect toward the balance between ones work and family life. The argument here is that potential candidates have seen the ability to improve their work-life balance and now expect employers to respect that or they will find it elsewhere, thus starving the employer from quality individuals. Considering all the rapid changes that have been seen in society, is PO fit more or less crucial in job selection as it was prior to the COVID-19 pandemic?

2.4.2 Person-Job Fit Definition “The people make the place” (Kristof-­Brown et al., 2005). Person-Job fit (PJ fit) can be best described as the “relationship of a person’s characteristics and those of the job or task that are performed at work” (Kristof-­Brown et al., 2005). PJ fit can be interpreted in two ways. The first is the demands-abilities fit. This is the employee’s knowledge, skills, and abilities. The second describes when the employee’s needs, desires, and preferences for the job are met (Kristof-­Brown et al., 2005). This is known as the needs-­supplies, or supplies-values fit, influencing theories on wellbeing and satisfaction in the workplace (Kristof-­Brown et  al., 2005). PJ fit has strong correlations with job satisfaction, organizational commitment, and intent to quit (Kristof-­Brown et al., 2005). Measurement Measuring for PJ fits, such as overqualification, has most commonly been done via self-reporting. The data captured explores how the employee themselves feel about their abilities. A second way to measure is the use of survey assessments of the employee qualifications and the qualifications of the job, with the mismatches being the over−/underqualifications of the potential employee. Most mismatches are generally an issue of the candidate being either over- or undereducated for the requirements of the job description. One well-known study for finding overqualification is the O*NET assessment that compares 35 different skills to establish the candidates level of PJ fit within the organization (Erdogan & Bauer, 2021). These assessments are commonly performed during the application process. If you have ever applied for a position via LinkedIn or Indeed, you have most likely completed one of these assessments. A downside to these is the ability of a candidate to cheat in order to make themselves appear to be a better fit for the job than they truly are. Similar to what is seen in Person-Organization fit assessments. Regulatory Fit Theory Regulatory fit theory (RFT) is another way of understanding PJ fit. Regulatory fit is when there is a match between the goal being pursued and the individual’s personal style of goal pursuit. Regulatory fit expands upon the idea that people want to minimize pain and maximize pleasure. It is not saying that setup is wrong, more that

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people are all different and find pleasure and pain in a myriad of different ways. What is a painful task to one is a pleasurable task to another. Take, for example, a study conducted by Higgins et al. (2007) where participants wither a fun activity (a game) or an important activity (financial task) in whether an enjoyable or serious circumstance. When the subjects were given the opportunity to redo the experiment, they overwhelmingly wanted to reperform it in the circumstances that gave it regulatory fit, game/enjoyable, financial activity/serious, and showed no desire to perform it in the nonfit circumstances, game/serious, financial task/enjoyable (Higgins & Pinelli, 2020). When the regulatory fit is strong, the experience intensifies, and the employee feels that they are doing the right thing. When there is a weak regulatory fit, the experience diminishes, and the employee will feel “wrong” about what they are doing within the organization (Higgins & Pinelli 2020). Organizations can rely on RFT when selecting candidates. RFT has made a clear distinction between individual’s self-regulation and those that are promotion-­ focused and prevention-focused. Originally it was believed that individuals simply want to maximize pleasure and minimize pain. Further research showed that this idea overlooked many key ways that an individual’s tolerance to reward and risk varied from other individuals, and not everyone is the same. Promotion-focused individuals have a heightened sensitivity to the presence or lack of positive outcomes, gains, and nongains. Promotion-focused individuals are concerned with growth and aspirations and intend on moving the status quo to obtain a better state. Whereas prevention focused are more concerned with responsibilities and security and has a heightened sense for negative outcomes, losses, and nonlosses (Higgins & Pinelli, 2020). Overqualification One unique phenomenon in PJ fit is that of being overqualified for the job and how that can impact the person-job fit as a candidate. Many people can recall times in their life when they have heard similar phrases that resemble “they passed on me because I was overqualified. How could I be rejected for being too qualified?” The answer to that question is simple. The potential employer fears that if they hire a candidate that exceeds the qualifications that are required for the job description, they will leave as soon as a better position becomes available. The logic being who would want to work in a position that is considered less than compared to their abilities. The employer would believe that it is most like a poor Person-Job fit. Lastly, the overqualification of a candidate is generally seen as an undesirable situation and will most likely serve as a barrier to employment. Overqualification is where a candidate’s qualifications, such as education and experience, exceed the needs of the organization. Much of the problem with an organization hiring an overqualified individual lies in turnover and the intent to leave. Research has shown that many overqualified employees exhibit behaviors that indicate the intent to leave an organization once a better opportunity is perceived by the employee. This can cause an organization to spend an excessive amount of money and resources on an employee that does to have an expected useful longevity, therefore potential employers tend to turn down overqualified candidates (Erdogan & Bauer, 2021).

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PO Fit Versus PJ Fit Another example of PJ fit is when a potential employee may have the perfect fit within the organization but not quite the fit for the job. In this scenario, most employees will learn the required skills to remain in the position due to their loyalty to the organization as a whole. Such as a Project Manager in the construction industry leaving the entire industry that individuals worked in for the semiconductor world, even though all of their experience in the job was in construction only. The PJ fit level was quite low, and the PO fit was very high. Because of this, the individual knew that the learning curve would be severely steep but was more than willing to learn what it would take for them to improve their PJ fit because of how the organization treated them as an employee. But, because organizations must hire based on job-relevant abilities, PJ is the most used theory within PE when hiring potential candidates. With this, it can be surmised that employees with a high PJ fit can have a low PO fit and will still be hired anyhow. This implies that individuals within the organization should all have a high PJ fit. Employees that exhibit low PJ fit may try to increase their PJ through training, internal job change, or even demotion. If the employee has low PJ fit and low PO fit, they will most likely not remain with the organization in the long term (Kristof-­Brown et al., 2005). Research has shown that it is more important to assess the individual’s ability to fit within the work environment instead of the organization’s ability to fit with the candidate when going through the selection process. This is a better predictor of PO fit success (Kristof-­Brown et al., 2005). Additionally, there is no one size fits all assessment. Assessments can vary wildly between institutions and even internally within the same institution (Kristof-­Brown et al., 2005). The most accepted way to measure PO fit is to use a values-based instrument (Kristof-­Brown et al., 2005). Ensuring that employees have a proper PJ fit within the company is especially important. An organization that relies heavily on sales employees would not benefit from a very shy but detail-oriented employee. Vis a vis, a company that requires a quiet and individualized work would not be beneficial to an employee that needs to work in a team and thrives in a position the requires extroversion. Neither employee would be successful in those situations, and this would cause more turnover within the organization. PJ fit ensures that the right employee is being hired for the right position within the organization, leading to higher job satisfaction and lower turnover rates.

2.4.3 Other Fit Types Person-Team (PT) Person-Group fit establishes how a person will fit into a team or group within an organization regarding demographics, values, goals, personality, and skills. Many studies have been conducted to evaluate both the effects on both the individual and the team. Deep-level analysis depends more on the individual, whereas surface-­ level analysis focuses more on the fit within the team (Van Vianen, 2018).

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Person-team fit is found to be moderately related to satisfaction, job attitudes, and organizational citizenship behaviors; it creates slightly weaker relation in task completion (Kristof-­Brown et al., 2005). Person-Supervisor (PS) This best refers to the fit between the employee characteristics with that of the supervisor. Supervisors play an important part of the organization. The supervisor communicates the company values to the employee and creates the daily tasks they will engage in (Van Vianen, 2018). The similarity attraction hypothesis would advise that similarity with the supervisor leads to feelings of inclusivity, trust, and creates a high leader-member exchange (LMX) (Van Vianen et al., 2011). You will learn more about the leader-member exchange and how it is utilized in Chap. 7. PS fit is distinct from PO fit as it looks to understand the fit on an individual level between the employee and supervisor and not an organizational level (Van Vianen, 2018). PS fit is less attached to overall organizational commitment, but strongly related to job satisfaction (Kristof-­Brown et al., 2005). Person-Vocation (PV) The broadest level of research conducted on PE is Person-Vocational fit. It is defined as “matching individuals to various levels of their work environments” (Judge & Ferris, 1992: Kristof, 1996: Kristof-­Brown et al., 2005). For example, institutions such Department of Labor and the Veterans Administration use individual-level assessments to ascertain an individual’s interest in certain occupations in an effort to aid them while they pursue an appropriate career post their military service. They are commonly called vocational assessments. Measuring for PV fit has proven to be plagued with errors. It is difficult to measure and quantify something such as PV fit. Eventually, after a 15-year longitudinal study, it was discovered that person-vocation fit, and job satisfaction are unrelated (Van Vianen, 2018). While this may be true, it does not reduce the value that PV fit presents. People do take this into consideration while looking for employment. For example, a person interested in outdoor activities would most likely express an interest in working in fields that give them similar exposure. Overall, there is a great deal of need for an organization to select the appropriate candidate for the positions they are seeking, and for the prospective employee to select the appropriate organization. There is also a need to maintain the organization’s current talent pool and not lose these employees. By utilizing the various measurement styles, such as the ASA and RFT methods of candidate selection and understanding how the many different styles of PE fit interact, an organization can successfully attract the right candidate and maintain their employment for the long term.

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2.5 Individual Outcomes in Organizational Context Every person is unique, and how they approach their work will be just as unique as they are. Whether it is the perception, attitude they have while at work, or their behavior that affects their performance within the organization. In this section, perception, attitudes, well-being and stress, and performance in the workplace will be discussed.

2.5.1 Perception It has been found 50% of people have the perception that they and their coworkers are being overworked (Harris Interactive, 2022). Perception is how an individual interprets a situation that has occurred to them, whether that be at work or in their personal life. In this section, we will introduce two important perceptions: perceived justice and perceived organizational support. 2.5.1.1 Perceived Justice Perceived justice has long been recognized as an ideal that is a basic requirement for the internal effectiveness of any organization by social sciences (Greenberg, 1990). Perceived justice refers to the subjective perceptions of the fairness of allocations, such as promotions, pay raises, and training opportunities (Gelens et  al., 2013). There are different ways that perceived justice is evaluated within an organization: distributive justice, procedural justice, interpersonal justice, and informational justice. In earlier years of the study of justice in the workplace, distributive justice, the fairness of outcomes, was the focus of research. Distributive justice deals with the process in which allocations of resources are decided (Gelens et al., 2013). It was shown that individuals react to outcomes by comparing their own ratio of outcomes and inputs against others. If the ratios matched, the outcomes were then seen as fair. If they did not match, then the outcomes were perceived as not fair or just (Colquitt, 2012). Studies conducted in the 1960s found that when individuals felt they were underpaid compared to others in the same job, they would decrease their performance, and when they believed they were being overpaid for the same job, they would then increase their performance to balance the output/input scale and attempt to become fair and balanced, thus obtaining distributive justice within the organization (Colquitt, 2012). Procedural justice is centered around the information that is provided about the process (Colquitt, 2012). There are six rules that an organization must follow for a decision to be perceived as procedurally just. They must be consistent over time and

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people, never be influenced by self-interest, grounded in correct information, change when found to be unfair, represent the interests of all parties, and take moral and ethical values into consideration (Leventhal, 1980). If these six rules are not followed, the outcomes will be perceived as unjust. Additionally, when organizations allow for the employee to have a voice in the process, giving them the sense that they themselves can influence what is happening, even if the decision is one that has a negative outcome, the employees will have a higher sense of perceived procedural justice (Colquitt, 2012). Interpersonal justice regards the relational treatment an individual receives through the decision process. This is a perception that is created when the employee feels that they have been treated with dignity, politeness, and respect by those above them within the organization. This belief can be garnered even when the outcome is not always positive one for the employee (Gelens et al., 2013). Informational justice refers to how the information about the process was provided to the individual. To obtain the perception of informational justice, the individual would need to receive the information in an open and honest manner. This type of justice can be hard for an individual to perceive in an organization that does not inform its employees of certain affairs, such as talent management (Gelens et al., 2013). Overall, these perceptions of justice will impact attitudes and behaviors. Understanding this, how can we design the system to improve, including how they perceive the support from their organization? One of the first steps would be to build a process that allows employees to understand the process of talent management. This would result in a higher perception of justice as the employees would perceive the practice as fair because they know and understand it. Another step would be to have straightforward human resource practices. This would involve clear procedures for resource allocation, treating the employees with respect, and being clear about expectations for the roles the employees have within the organization (Gelens et al., 2013). 2.5.1.2 Perceived Organizational Support Perceived organizational support (POS) is a valuable asset for any organization. This is the individual’s belief that the organization cares about them and their well-­ being (Eisenberger et al., 1986). There has been a multitude of studies that have shown the higher an individual’s POS is within an organization, the more effective they will be in their job and willing to deal with stressful situations. The less POS the individual has, the less they will be able or willing to handle stressful situations at the organization (Rhoades & Eisenberger, 2002). There are three main antecedents that affect POS. Those are fairness, supervisor support, and organizational Rewards/job conditions. As described by Rhoades and Eisenberger, fairness involves the distribution of resources among employees, adequate notices before decisions are made, and a voice for the individual employees in the process. The fairer the process is seen to be, the higher the POS should go.

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Supervisor support regards how the supervisor shows the value they have in the employee, whether they allow the employee to participate in evaluations, explain why certain events took place, and overall establish a sense of concern for the employees’ well-being. The last antecedent suggests that showing recognition and rewarding the employee for their contributions to the organization in ways, such as promotions, job security, autonomy, and training, will result in a higher POS for the individual (Rhoades & Eisenberger, 2002). There are several consequences of POS that can greatly affect an organization. Individuals with high POS will exhibit a greater commitment to the organization. This is a reciprocity effect; if the organization proves to the individual that they are committed to them, then the individual will, in return, become committed to the organization and its well-being. Additionally, an individual with a high POS will increase their performance for the organization and potentially go above and beyond what is expected of them. Another succinct consequence of POS in an organization is the effect on strains. An organization where employees have a high POS can expect to see a reduction of adverse psychological and physical effects on their employees. This can all lead to a high desire to remain within the organization. Lastly, organizations that have low POS can expect the inverse, low commitment, low performance, higher psychological effects, and a desire to leave the organization instead of remaining (Rhoades & Eisenberger, 2002).

2.5.2 Job Attitude Individuals will spend approximately 81,396 hours of their life working (Gallup, 2022), but many individuals simply do not enjoy working. Job Attitude Definition Attitude is defined as “a psychological tendency that is expressed by evaluating a particular entity with some degree of favor or disfavor” (Eagly & Chaiken, 1998). Job attitude evaluations of one’s job express one’s feelings toward (affect), beliefs about (cognition), and attachment to one’s job (Judge & Kammeyer-Mueller, 2012). Important factors that aid in the definition of job attitude are cognitive and affective components. It must be recognized that cognitive and affective aspects are not always in exact correspondence with one another. Additionally, job attitudes are hierarchically organized in a multifaceted nature allowing multilevel modeling of job attitudes, which allows for both within-individual (state) and between-­individual (trait) effects. Some common job attitudes include job satisfaction, commitment, and engagement. Job Satisfaction Job satisfaction is an evaluative state that expresses contentment, the cognitive component, with positive feelings, the affective component, about an individual’s job. These components utilize a classic measuring system known as the Job Descriptive

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Index (JDI). JDI is comprised of five facets of job satisfaction with those being: work, supervision, coworkers, pay, and promotions (Smith, 1969). Several different research studies have concluded that these five facets are related to each other, and evidence suggests that the facet of job satisfaction is very closely related to the work itself. Meaning the type of work the individual is doing drives the level of satisfaction. For example, an individual who prefers to work in an office would have little satisfaction working outside in the elements, and the same would be true for an individual who hates working inside (Judge & Kammeyer-Mueller, 2012). Borrowing from the concepts set forth from consumer behavior research, it was well established that purchasing experiences can garner an individual even more happiness than the actual material object. Further research (Bastos & Barsade, 2020) has found that employees who see their jobs as primarily providing experiences (vs. material objects) gain more happiness from those jobs, because they are more likely to believe they bring positive impact and perceive meaningfulness in their jobs (Bastos & Barsade, 2020). Organizational Commitment Three distinguishable forms of commitment can be found within any organization. These are affective (AC), normative (NC), and continuance (CC) commitment. These forms of commitment are measured using the Three Component Model (TCM). An individual’s psychological bond with the organization is represented by an affective commitment attachment to the organization, which produces a feeling of loyalty toward it, and an intention to remain as part of it. Normative commitment reflects an individual’s sense of obligation to stay, and continuance commitment is an individual’s perceived costs of leaving the organization (Meyer et al., 2002, 2012). Studies have shown that an individual intention to quit their position within an organization has decreased in Eastern cultures during the COVID-19 pandemic (Song et al., 2020). In the west, though, a different phenomenon occurred. Many people participated in what was called the “Great Resignation.” There was a great upheaval in the workforce, and many people quit their jobs in search of better opportunities. As the job market collapsed under the lockdowns and then reopened, it offered many people the opportunity to find a position that better fits their needs (Gittleman, 2022). Engagement “Job engagement refers to employees’ harnessing of their physical, cognitive, and emotional energy toward executing their work roles” (Kahn, 1990). With vaccine and medicine development, as well as the variants of COVID becoming less deadly, employees started to transition back to the workplace physically. How to reconnect and reengage mentally became important (Yuan et al., 2021). Employers need to make sure the employee “mobilizes one’s energy, directs one’s attention back toward work and allocates resources” (Sonnentag & Kühnel, 2016). Another key factor is the perceived psychological safety, for instance, believing that resources are available, employers will treat them fairly if they get sick (Kahn, 1990). Further

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research has shown that work engagement ultimately decreased during COVID-19 pandemic (Song et al., 2020). Antecedents Antecedents regarding work satisfaction have been studied extensively over the past several years. These are the attitudes that an individual had before and will bring with them into the workplace. This research has developed a model that has garnered a great deal of support in relation to job satisfaction. Dispositional and situational influences (Cognitive and affective bases of job attitudes) were recognized very early on in the first writings regarding job attitudes as the leading cause of high or low job satisfaction, but research throughout the 1970s and 1980s showed this was not the only factor related to job satisfaction. Although there is a strong correlation between an individual’s disposition and job satisfaction, nondispositional factors were proven to also play a major role in job satisfaction (Judge & Kammeyer-Mueller, 2012). Another important antecedent in an individual’s disposition is core self-­evaluation (CSE). CSE focuses on the core beliefs that an individual has about themselves and the world. These are hierarchical and specific traits that comprise broad general traits. CSE is based on four criteria: self-esteem, generalized self-efficacy, neuroticism, and locus of control. Further studies have shown that these four CSE traits are directly linked to an individual’s level of job satisfaction (Judge & Kammeyer-­ Mueller, 2012). Uniquely CSE was found to be negatively related to perceptions of obstacles and goal fulfillment within an organization (Best et al. 2005). Due to the constraints many studies have, it has proven difficult to know whether individuals who have a high CSE within an organization simply paint a rosier picture of the organization or if they truly select positions with better attributes for them (Judge & Kammeyer-Mueller, 2012). Outcomes of Employee Attitude From a general social science perspective, attitude impacts behaviors. For instance, an individual’s attitude toward’s something such as a labor union, whether an individual takes part in union meetings; the environmental attitude of employees, leads them to their environmental behavior; there’s also correlation between entrepreneurial attitude and behavioral intention to do business in the future (Fitzsimmons & Douglas, 2005). People tend to avoid cognitive dissonance, which is the discomfort a person feels when their behavior does not align with their values. Therefore, they will desire to match their behavior with attitude normally. Some interesting findings have discovered that people will present their attitudes based on their behaviors to avoid cognitive dissonance. What employees know, think, and feel about the work and how they would react behaviorally toward the work (Abun et al., 2021) will be based on these behaviors. An individual’s attitude has a direct influence on behavior and performance in the workplace. When an individual exhibits a perceived positive attitude, this greatly enhances the output at work and when they have a negative attitude, they will perform at a less desirable rate. An employee’s attitude about their employment will

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affect the three individual work performance measures. Those measures are task performance, contextual performance, and counterproductive work behavior. Task performance is the employee’s ability to do their job, contextual performance is the behavior that supports the organization’s social and psychological environment, and lastly, counterproductive behavior is behavior that is detrimental to the organization. This research proves the need for organizational management to consider an employee’s attitude toward work and foster a positive attitude over a negative one. Employees who do not understand or know their job function because of a lack of training and management support will not flourish or create a positive atmosphere within the organization because they will not have a positive attitude toward work. On the contrary, employees who are supported and offered continued education and who know their job generally have a positive attitude toward work and can help create a positive atmosphere within the organization (Abun et al., 2021).

2.5.3 Workplace Stress and Well-Being In the recent Harris Interactive “Attitudes in the Workplace” poll, 80% of employees state that they need help managing stress within the workplace (Harris Interactive, 2022). As jobs continually return to the market in the postpandemic employment landscape, will this continue to be the trend, or will workplace stress begin to ease back down to pre-covid levels? These are just a few of the many questions that employees face in the post-covid landscape. After the discussion on attitude, whether you are happy and engaged at your work, it is important to examine workplace stress and well-being. The main question to be addressed here is: are you stressed at work or well at work? Job Stress and Well-Being Using the Global Workplace report (Gallup, 2022), employee stress is at all-time high and workers from the United States are some of the most stressed employees in the world, half of which reported feelings of stress consistently. In the past 3 years, the global pandemic has been a significant factor that cannot be ignored. This has become a challenge to the state of an employee’s overall well-being (The State of Employee Well-being 2022 report). Job stress refers to “the harmful physical and emotional responses that occur when the requirements of the job do not match the capabilities, resources, or needs of the worker” (Sauter et al., 1999). There are different types of stress. Some are task-related, for instance, your work is overloaded; some are role related, for instance, you don’t have a clear role and the ambiguity could lead to stress; some are related to social factors, for instance, interpersonal conflict (Kahn & Byosiere, 1992; Sonnentag & Frese, 2012). Some of the stressors are acute and based on single incidents, while many others are chronic due to events over an extended period of time.

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Job stress typically leads to adverse reactions regarding an employee’s well-­ being (Spector et al., 2000). Workplace well-being refers to the health and happiness of employees, physical and psychological, rather than performance; job performance will be discussed in the next section of this chapter. Some vital signs in the workplace that are being impacted by job stress include burnout, depression, psychological distress, somatic complaints, illness, and physiological distress. These factors, in turn, will impact productivity at work (Bui et al., 2021). Source of Stress There are many sources for workplace stresses: the characteristics of the job (e.g., occupation, email usage), the characteristics of the people (e.g., gender), and the characteristics of the environment (e.g., violent and toxic environment, global pandemic). People in every profession experience work stress. Among all the studies examining workplace stress, medical-related occupations are some of the most widely researched. This includes nurses, physicians, and other medical field careers (e.g., Nurse, Nayomi, 2016; physician, O’Dowd et al., 2018; emergency department staff, Anderson et al., 2021; psychiatric workers, Hilton et al., 2021) as these are considered some of the most stressful jobs in the market. They encounter strange hours, heavy workloads, and even the deaths of their “customers.” Many characteristics of the job and environment, such as risk, time pressures, and long-standing hours, contribute to job stress. The characteristics of many other occupations also lead to high workplace stress, such as federal law enforcement officers (El Sayed et  al., 2019), service sector employees (Lukić and Lazarević, 2018), teachers (Griffith et al., 1999), and university staff (Ahsan Abdullah et al., 2009). The military also presents a unique stress environment that is not seen in other fields, with long deployments, extreme training and conditioning of their physical bodies, and the untimely, often instant, death of their colleagues. Many former members of the US military experience several physical symptoms of stress, such as insomnia, gut health issues, heart conditions, and muscular skeleton pain. A large majority of these symptoms developed as secondary symptoms to posttraumatic stress disorder (PTSD). Similar to what police officers will experience as presented in resent studies (Hou et al., 2017). Information and communication technology (ICT) plays important roles in determining how our work is done (Day et al., 2021). One specific aspect, email usage, has become a major stressor at work. The demand and the mismatch of our expectations on email use affect our perceptions of work relations, job control, and job conditions (Stich et al., 2019). A measurement tool was also developed to operationalize this new term: digital stressors (Fischer et  al., 2021). Additionally, the pandemic gave rise to the virtual meeting room and created a new level of stress. Although it afforded individuals to remain working from home, it became intrusive for many and led to virtual meeting burnout and stress. The role of gender in workplace stress has also been studied over the past several decades. Working women tend to experience more stress due to multiple roles affecting their work-life balance. This has implications regarding their career progress, promotions, and many experience workplace discrimination (Gyllensten &

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Palmer, 2005). Research further investigated the “double jeopardy” effect of gender and age on workplace well-being for old women (Wilks & Neto, 2013). The effects of stress on women in the workplace is extremely lopsided compared to males, whether the male is young or old, they do not experience anywhere near the same level of stress due to their gender. An individual’s work environment greatly impacts their stress level as well. Workplace aggression like violence and toxicity is an evident stress that contributes to lower employee well-being (e.g., Hilton et al., 2021; Al Khoury, 2022). Broader environmental disasters like terrorist attacks and pandemics also significantly impact mental health (Brooks et  al., 2016). The COVID-19 pandemic became a major stressor and has increased the call for awareness of workplace mental health. The safety issues, the missing social component of work, the work-life imbalance, the risks of losing one’s job, and the role changes all contribute greatly and longitudinally to employees’ mental wellness (Ivey et al., 2021). Burnout, depression, and even posttraumatic stress disorder (PTSD) surfaced the organizational problems and urged call for action from the organizations (Van Der Feltz-Cornelis et al., 2020; Kelly et al., 2022; Toshniwal & Narendran, 2020; Restauri & Sheridan, 2020; Ho et al., 2020). Intervention There are significant effects of stress and well-being on an individual’s workplace productivity. For instance, mental illnesses have cost over $300 billion annually for the U.S. economy, among which absenteeism and low productivity attributed to this economic toll (The American Institute of Stress, 2022). It is time to enhance organizational practices that support employees’ mental well-being. Organizations use various stress management methods to reduce employees’ stress (Johnson & O’Connor, 2021). For example, organizations could reduce the stress associated with job characteristics by redesigning the job itself; organizations could also provide training and mentoring sessions to help employees with coping strategies (Holman & Axtell, 2016). In many organizations, mindfulness training has been introduced to help cope with stress in organizations in recent years (Roche et al., 2021). It is also important to understand the intervention has to be customized to fit the context to be more effective (Nielsen et al., 2021). In an effort to combat the physical side of stress, several large employers, such as Capital One, have built gyms within their facilities that are free to use for employees. The free memberships encourage employees to use them, and most provide free time during the day so that using the gym does not interfere with the employees’ break schedule, which would cause additional stress between the choice of eating and exercising.

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2.5.4 Performance How does an individual know if they are bringing value to their company? As a salesperson, are their sales helping the company’s brand to grow? As an accountant, have they helped the business make sound financial decisions? As a 5-star Uber driver, is their hospitality bringing the company value? As a teacher, is building the virtue of their students contributing to the school’s interest? As a programmer, do their codes help the organization to achieve its goals? What is job performance? What are some important dimensions? There are many individual differences that are of interest to the OB researchers, such as personality traits, values, and person-environment fits. In order to understand performance from the OB perspective, it is important to understand its nature and its three dimensions: task performance, contextual performance, and adaptive performance. Behavior Versus Results Researchers prefer to consider performance as the behavior of the individual rather than results. This is because situational factors can determine the results that are out of the control of individual. Farmers had worked exceptionally hard the entire year, and then the COVID-19 pandemic happened. Because of the pandemic, fresh produce became a disaster. An Idaho farmer was required to dig large ditches to bury one million pounds of onions. Dairy farmers from Wisconsin found themselves dumping thousands of gallons of fresh milk into lagoons. Would these results be a good way to demonstrate the performance? Or the work they put in? Most would say no, it is not the fault of the farmer that the pandemic started and that it created a destructive result of the hard-working behavior exhibited by the farmers. The pandemic impacted a lot of industries, and researchers (Ferraresi & Gucciardi, 2021) discovered very interesting effects on soccer players’ performance, specifically how much does the player miss a penalty kick. They found out that for home teams, the probability of missing a penalty increases when matches are forced to be played behind closed doors, while visiting teams are less likely to experience a failure on a penalty kick, with these effects being more pronounced when the level of attendance, measured before the pandemic, was high. The effect could be extended to other skill tasks as well. Maximum Performance Versus Typical Performance Maximum performance and typical performance are not necessarily related. For instance, researchers used supermarket cashiers as samples and measured typical cashier accuracy and speed as well as maximum accuracy and speed over a few weeks period (Sackett et  al., 1988). The typical performance is by observation, while maximum performance is under sample simulations where cashiers were asked to do their best and put equal emphasis on speed and accuracy. The results demonstrated that maximum performance is not highly related to typical performance. Therefore, it is inappropriate to use one to predict the other.

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How Different Stakeholders View the Impact of the Behavior Differently? In many cases, the same positive behavior can be perceived positively by everyone, but in certain situations and jobs, behavior can be perceived differently by different stakeholders. For instance, researchers found that in prison, correctional officers have different opinions with their supervisors (Motowidlo & Peterson, 2008). Correction officers believe that they should use more agreeable behavior toward inmates to be more effective, while their supervisors believe conscientious behavior toward inmates should be more effective. Which type of behavior then contributes more to the organizational goals? Possibly the agreeable behavior presented by the guards would be more effective. They are the “boots on the ground” so to speak, and have the closest contact with the prisoners. This is where the appraisals may not reflect their performance appropriately. Performance is a multidimensional and dynamic concept. There are different models of behavioral dimensions of job performance, such as Campbell’s (1990) multifactor model that includes task-related and non-task-related factors; Borman and Motowidlo’s (1997) model that tries to distinguish task and contextual performance; the term Organizational Citizenship Behavior, Counterproductive Work Behavior, and adaptive performance. This text mainly intends to introduce and focus on task performance, contextual performance, and adaptive performance. Task Performance Task performance is defined as “the proficiency by which individuals perform the core technical task central to his/her job” (Campbell, 1990). It includes production tasks as well as service tasks, such as installing headlights on auto assembling lines, brewing a cup of coffee at a coffee shop, operating a surgery as a surgeon, driving a taxi, and hosting a group of tourists for a local tour. Contextual Performance Contextual performance is “the behavior that supports the organizational, social, and psychological environment in which the technical core must function” (Borman & Motowidlo, 1997). It includes personal support, such as helping new team members by offering tips based on experience, providing emotional support for a colleague’s personal problems; organizational support, such as displaying loyalty by staying with the organization during a crisis like the pandemic, and conscientious initiative such as going above and beyond to learn the skills and knowledge than is necessary. Researchers (e.g., Bateman & Organ, 1983; Smith et  al., 1983; Organ, 1988) investigated a new construct that assembles behaviors defined by contextual performance, and Organizational Citizenship Behavior (OCB) has been defined as “individual behavior that is discretionary, not directly or explicitly recognized by the formal reward system, and that in the aggregate promotes the effective functioning of the organization” (Organ, 1988, p. 4). Organizational citizenship behaviors are also represented in Campbell’s (1990) multifactor model. There is another construct being studied called Counterproductive Work Behavior (CWB) and is defined as “the behavior that harms the well–being of the organization” (Rotundo & Sackett, 2002, cited by Koopmans et al., 2014). Could CWB by

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an individual be unintentional? Because if it is unintentional, it can then be considered as low task performance and low OCB. Is CWB the opposite of OCB? Meta-­ analysis only found a moderate negative relationship between the two variables, which doesn’t quite support the argument of the opposite side of one dimension. So commonly, we still believe CWBs are intentional behaviors by employees that contribute to the contrary of the organizational interest (Rotundo and Sackett, 2002). Adaptive Performance Adaptive performance was not initially included in Campbell et al.’s (1993) taxonomy, but the need for adaptive employees has become increasingly important. The workplace is rapidly changing with the advances in technology. In the past, work could be planned in advance and was stable, but today, it is constantly changing. It is necessary for employees to be adaptive in the workplace with the increased load of responsibilities that they now have. An adaptive performer must have the skills, knowledge, and ability to respond to the ever-­ changing landscape at work (Stokes, 2008).

2.6 Conclusion After reading the chapter, you should be able to answer the questions first posed in the Peter Rice reading. Do you understand why Mr. Rice could hold the same position in two different companies but only fit within one organization? Can you answer why Mr. Rice’s PO fit was not strong enough to remain at Disney? What about Mr. Rice’s personality? Additionally, how was Peter even able to survive in an environment for 3 years that did not align with his values? Do you understand how Mr. Rice was able to maintain his attitude while at Disney even though he was misaligned? The concepts covered in this chapter should give you the knowledge required to confidently answer all of these questions. After reading this chapter, you should have a solid understanding of how to use fit when searching for employment or when considering candidates.

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Chapter 3

Motivation Julie Weber-Kramer

Abbreviations ALS JCT NCAA NIL SDT

Amyotrophic Lateral Sclerosis Job Characteristics Theory National Collegiate Athletic Association Name, Image, and Likeness Self-Determination Theory

Wells Fargo In January 2020, the Office of the Comptroller of the Currency issued a ruling prohibiting John Stumpf, the former CEO of Wells Fargo, and Carrie Tolstedt, the former head of Wells Fargo’s community banking division, from ever participating in the banking industry again. This banishment was in addition to the 2016 forfeiture and clawbacks of a combined $136  million of compensation. In February 2020, Wells Fargo was ordered to pay $3  billion to the Department of Justice and the U.S. Securities and Exchange Commission to resolve transgressions of its past sales practices (Cooper & Gnanarajah, 2020). In December 2022, the Consumer Financial Protection Bureau issued Wells Fargo its largest fine in history for its decade of harmful practices and mismanagement. The firm was ordered to pay over $3.7 billion in consumer redress and civil penalties. Future government actions against the company are also possible (Flitter, 2022). What could have led to this tragic and public shame of one of the most respected banks in the nation and of two of the most revered banking leaders in recent history? Wells Fargo was founded in 1852 by Henry Wells and William Fargo as a stagecoach delivery service with a reputation for safeguarding customers’ money. By 2017, Wells Fargo grew to be one of the most successful financial institutions in the United States, with a market capitalization of $275  billion and profits of J. Weber-Kramer (*) Herberger Business School, St. Cloud State University, St. Cloud, MN, USA e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 N. Hou et al. (eds.), Organizational Behavior, https://doi.org/10.1007/978-3-031-31356-1_3

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$21.9 billion. The community banking division represented over half of Well’s total revenue (Srinivasan & Goldberg, 2020). Key to Wells Fargo’s community banking division’s success was its insistent focus on cross-selling. Cross-selling is a sales and marketing tactic of swaying existing customers to broaden their purchases into additional products and services offered by the company. In 2013, Wells Fargo’s customers had an average of 6.15 of the company’s products and services, which was four times higher than the industry average. Incessantly, Wells’ senior leaders increased the cross-selling goal to eight and established the selling mantra, “Eight is Great” (Srinivasan & Goldberg, 2020). Wells Fargo leaders exerted intense pressure on staff to achieve this cross-selling goal. This created an aggressive, at times abusive, sales culture that encouraged employees to use whatever means necessary to achieve their cross-selling goals. Community bank employees opened 3.5 million deposit and credit card accounts without customer knowledge between 2009 and 2016 (Srinivasan & Goldberg, 2020) Although the company terminated over five thousand employees for their participation in setting up these fake accounts, culpability extended far beyond the front-line sales staff. A Wells Fargo Sales Practices Investigation Report issued in April 2017 found that the company board of directors and other executives were aware of many of the issues that contributed to the fake accounts scandal as early as 2002 (Cooper & Gnanarajah, 2020). How did things go so awry at Wells Fargo? Why is achieving organizational goals such a powerful motivator for employees? How do organizations ensure goals are pursued in a manner consistent with the organization’s values? What responsibility do leaders have to ensure the ethical pursuit of the organizational goals they set? After reading this chapter on motivation, you will be prepared to answer these questions.

3.1 Introduction 3.1.1 Why Study Motivation? What defines a motivated person? Why are some employees driven to achieve their goals and objectives, while others seem content with doing just enough to get by? Motivation is the force that leads people’s behaviors in certain ways. Understanding motivation is critical to managerial success. Simply ensuring an employee complies with a manager’s order is not as effective in the long run as actually getting that employee to want to engage in the specified behavior. Understanding motivational theories help prepare managers to tap into employees’ desire to achieve and deliver organizational objectives. This chapter reviews motivational theories to help us define motivation and understand its contributions to performance. Motivation is a key element of job performance but is not the only necessary element (Vroom, 1964; Porter & Lawler, 1968; Campbell & Pritchard, 1976).

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Motivation combines with expectations, ability, and environment to deliver job performance. The formula below depicts that relationship:

Performance  expectations  ability  motivation  environment

Mitchell (1982) asked the following questions relative to this formula when contemplating whether an employee is equipped to achieve the desired job performance: Does the employee know what is required? Does the employee have the ability, or is training necessary? Is the employee motivated to do what is required? Is the environment such that the process can result in predicted behavior? If the answer to these four questions is yes, job performance can be achieved. Motivation is often considered the most complex performance element to control, as it’s impacted significantly by individual perspectives. To that end, we devote an entire chapter to motivation.

3.1.2 Historical Perspectives on Motivation As documented in “Scientific Management” (Taylor, 1911), the Traditional Approach to motivation assumes that employees are motivated solely by monetary consideration. If fact, Taylor felt employees would be willing to work in undesirable conditions if the pay was adequate to compensate for the conditions. While no one would argue that monetary consideration has an impact on motivation, the idea that it is the only influence is no longer widely accepted. For the sake of the theory, however, let’s consider its applicability within entry-level labor positions where job conditions have little differentiation. A relevant example is a college student who works a summer job to save enough money to cover the tuition costs of the upcoming school year. The student’s primary goal is to earn adequate money with little consideration for the work environment. The Human Relations Approach to motivation (Mayo, 1923, 1924) assumes employees’ internal needs, such as feeling valued or being involved, outweigh the need for money. Fostering favorable employee attitudes results in motivation, even if the basis of the attitude is grounded in an illusion of involvement rather than reality. This approach focuses on giving employees what they perceive as meaningful projects, autonomy, variety, and feedback. An example is a manager who delegates a decision to a subordinate, telling the employee that her exceptional expertise and intellect make her the only employee equipped to find a solution to this crucial issue. In contrast, the manager truly feels this is a trivial issue, and the decision will have no meaningful impact on the company. The Human Resource approach takes the relationship between needs and motivation further and assumes people want to make and are capable of making genuine contributions; managers should encourage their participation by providing the proper environmental conditions. This approach takes the human relations approach to the next level of motivation by finding the right fit for the right people and

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involving these employees in the decision-making process rather than simply creating the illusion of involvement. McClelland and Burnham (2008) described Institution managers as those who are interested in personal power and who create the best teams by creating an environment that seems to be aligned with the Human Resources approach. These thoughts converge in influencing people to do things not because they were told to but because they want to (McClelland & Burnham, 2008).

3.1.3 Nature of Motivation Before going into the details of different motivational theories, let’s review the underlying properties of motivation. First, motivation is under employees’ control, meaning we consider it intentional. Second, we must also understand the different facets of motivation, including activation, direction, and persistence. Third, each individual is unique, and all motivational theories recognize the uniqueness and consider motivation as an individual phenomenon (Mitchell, 1982). For instance, different individuals demonstrate different needs, expectations, reinforcement responses, and goals. This chapter analyzes motivation from need, process, learning, and applied perspectives. A need can be anything a person requires or wants, such as food, health, recognition, knowledge, status, or money. A need deficiency is a realization that the need is not being met. This realization triggers an attempt to satisfy the need. Let’s consider a person’s need for money. In this example, Joe wants enough money to purchase a new Tesla automobile. A reassessment of need deficiency occurs after one assesses how much did the outcome address the original need deficiency. When the attempt to satisfy the need falls short of the desired outcome, one may reassess the status of that need and how it has changed in gravity or desire. This again impacts the behavior or actions chosen. In our example, if Joe meets but does not exceed his sales quota, his money need is not fully satisfied because he can’t afford the Tesla. Now Joe reassesses his need before choosing his future actions. Joe could decide his need is valid and determine he will work harder next year to earn enough money to buy that Tesla. Alternatively, Joe may reassess his need and determine it isn’t as important to him as he originally thought. He determines his bonus is adequate, and he does not change his behavior moving forward. He purchases a Toyota Camry to replace his minivan with the bonus earned. Joe’s need is satisfied with this outcome. When employees perceive inequity in the exchange relationships with the employers, or when the expectancy of actions on outcomes is not fulfilled, employees are motivated to adjust the input or output through their actions. Compared to counterparts, if the employee receives fewer outcomes for the same input, the inequity perception and the unfulfilled expectancy will drive the employees to act. In Joe’s case, if he receives less pay for the same responsibilities as his colleagues, the perception of being underpaid could drive him to work less. Rewards and punishments are, respectively, the positive or negative consequences of goal-directed behavior. If Joe exceeds his sales goal, he will be rewarded

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with a monetary bonus (positive reward) sufficient to purchase the Tesla. If Joe misses his sales goal by a substantial amount, Joe will experience the negative consequence of having an empty bank account and continuing to drive his old, rusty minivan. Behaviors are the actions an individual chooses, and goal-directed behaviors are actions that are taken to fulfill the need deficiency. In our example, Joe considers the actions he must take to earn enough money to purchase that Tesla. He concludes he must exceed his annual sales quota by 10%.

3.2 Needs-Based Perspectives Needs-based motivational theories, also known as Content theories, assert that when employees’ needs are satisfied, they will be happier and perform better at work. This section introduces three needs-based theories: Maslow’s Hierarchy of Needs, the Two-Factor Theory of Motivation, and the Self-Determination Theory.

3.2.1 Maslow’s Hierarchy of Needs A theory of Human Motivation (Maslow, 1943) describes how human needs, or the deficiency of those needs, affect a person’s motivation and behavior. It assumes that human needs are arranged in a hierarchy of importance. Once one level of needs is satisfied, a new need emerges, motivation changes, and growth can occur. The theory describes five needs. To illustrate the theory, we will review a progressive workplace example at the end of each need discussion. Physiological Needs  This basic and foundational need can be referred to as homeostasis: the body’s automatic efforts to sustain life. This includes things such as breathing, heartbeat, and metabolism  – the basic functioning of your body. Physiological needs are foundational. If a person is missing all things in life, physiological needs will be the motivating factor. For example, if a person is starving, he is motivated by food and only food. In our progressive workplace example, a new food service company employee, Sue, finds that her physiological needs for food and shelter are satisfied by the competitive compensation received from her role as a cashier. Her compensation allows her to buy ample groceries and pay her apartment rent and utilities. Sue’s physiological needs are met with her new job. Safety Needs  This second-tier need refers to protection from things that may harm a being. It can take multiple forms, such as protection from physical harm, emotional harm, and employment security. Safety needs are very strong, and the theory suggests that they are closely aligned with physiological needs. In life-threatening situations, safety will most certainly be the motivating factor. With Sue’s physiolog-

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ical needs satisfied, she will now be motivated to fulfill her safety needs. She’s become aware of the company’s rapid growth and its current shortage of qualified employees to accommodate this growth. This puts Sue’s mind at ease and satisfies her need for job security (safety). Love Needs  The next level of need is the need for love, affection, acceptance, and social connection. Once a person is fed and satisfied with the safety, the need to belong, feel loved, and be part of society emerges as a motivation. In our example, with both her physiological and safety needs satiated, Sue is motivated to fill her need for belonging. She joins a company-sponsored book club and develops friendships with co-workers in this club. She feels a sense of inclusion and acceptance, satisfying her belonging need. Esteem Needs  This need is based on status, reputation, and prestige. It is the feeling of self-confidence, self-worth, strength, capability, usefulness, and feeling respected by and necessary to the world. It describes the motivation of people wanting beyond sustaining life, safety, and belonging. Without this need fulfilled, one feels inferior, weak, and helpless. With Sue’s basic needs met, she is motivated to fill her esteem needs. She’s been performing well in her role and recently received the prestigious annual Service of Excellence award. She also applied for and received a promotion to Front-of-the-House Team Leader. The award and promotion boosted her self-confidence and gave her a renewed sense of value within the company. Need for Self-Actualization  This is the pursuit of being who you want to be. As Maslow wrote, “What a man can be, he must be.” This need describes the relentless drive to grow and be who you were meant to be. It explains the inner drive or motivation to continue to improve and be the authentic person you are. Sue continued to advance in her career. Her insatiable need for self-discovery and self-improvement motivated her to earn an MBA degree, become the author of a best-selling customer service book, and ultimately led her to leave her new executive role at the food-­ service company to become the CEO of a small nonprofit organization with the mission of ending food insecurity in the local marginalized community. Although she received less compensation at the nonprofit, she is resolute in knowing this mission is her life’s calling. She has satisfied her need for self-actualization. The diagram below highlights the satisfaction of Sue’s needs within the context of Maslow’s hierarchy (Fig. 3.1). Maslow’s theory suggests the order of needs is fixed; however, it describes exceptions, and the hierarchy may not be as rigid as detailed above. For example, one may be motivated more by esteem needs (title, power, prestige) than belongingness or the need to love. Another example is people who may have experienced chronic unemployment may be satisfied by adequate amounts of food or safety and never aspire to satisfy higher-level needs.

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Fig. 3.1  Maslow’s Hierarchy for Sue. (Adapted from the theories of Maslow, 1954)

In summary, human needs follow a general hierarchy and can describe how motivating factors will have different effects on individuals, depending upon their life situation. How a person’s needs are met, or how deficient, will attribute to behaviors and performance in personal and professional settings. A closely related theory, ERG (Existence, Relatedness, and Growth), was developed by Clayton Alderfer (1969). His theory slightly modifies Maslow’s Hierarchy of Needs by grouping Maslow’s five needs into three categories: Existence combines physiological and security needs; Relatedness is synonymous with Maslow’s social needs, and Growth corresponds with esteem and self-actualization needs. The primary difference between these theories is that ERG allows for more than one need to be worked on at a given time, as opposed to Maslow’s theory requiring a need to be fulfilled before moving up the pyramid to the next need. An example of ERG in practice is an employee who simultaneously works to expand his social circle at work while also building a strong reputation for delivering company results.

3.2.2 Two-Factor Theory of Motivation In Frederick Herzberg’s Two-Factor Theory of Motivation, motivation factors are looked at in two separate dimensions: Satisfaction and Dissatisfaction (Herzberg et al., 1959; Herzberg, 1965). These are not defined in the traditional sense, in which one may be satisfied or dissatisfied with a job, but rather job satisfaction and job dissatisfaction are viewed as two separate influences on motivation. The factors are categorized into two types: Motivation factors affect satisfaction and are associated with the actual work and the rewards resulting from performing it. Motivation Factors are used by individuals for Growth and represent the degree to which one achieves satisfaction or no satisfaction (see Fig. 3.2). These describe how an individual can have a feeling of contentment and satisfaction with a job. For

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Fig. 3.2  Hygiene factors are a prerequisite to motivating factors

example, the theory describes recognition as a Motivation Factor and concludes that an employee may be satisfied with the recognition received or feel no satisfaction if he does not receive recognition. The basis of the theory is that one is not necessarily dissatisfied if a motivation factor does not exist (no recognition in this example); rather, there will be no satisfaction. Hygiene factors affect dissatisfaction and are focused on the employee’s relationship with the work environment. Hygiene factors are used to prevent dissatisfaction from occurring. They can be referred to as “Maintenance” factors as they must be addressed first for motivation and job enrichment to be achieved. Hygiene factors must be addressed first, and when no dissatisfaction exists, Motivation factors can be used to achieve Growth. For example, if employees disagree with the company’s policy to eliminate remote work and force employees to return to the office, dissatisfaction occurs with this hygiene factor. The company will be unable to motivate employees with added responsibilities or recognition. Following the Covid-19 pandemic, this is a common challenge faced by organizations. It’s important to note that some criticism exists with this theory, as it does not recognize the impact of cultural differences and the method used during implementation. For example, western cultures tend to view the relationship with one’s supervisor and the impact on the ability to function at a job as a Motivation Factor versus a Hygiene Factor. Some western employees may find satisfaction in having an open, healthy working relationship with their supervisors. Others (some eastern cultures) may not have this need.

3.2.3 Self-Determination Theory In their Self-Determination Theory of motivation, Deci and Ryan (2000) caused a stir in the psychology world when they introduced the notion of intrinsic motivators. Prior to their research, the predominant thinking among motivation scholars was that behaviors were best driven through reinforcement mechanisms. Deci and Ryan, however, offered that people have an innate curiosity and interest and seek out and are motivated by challenges. They posited that tapping into these intrinsic motivators results in superior results (improved learning, creativity, performance, psychological wellness) over reinforcement techniques with rewards and extrinsic motivators. In essence, when someone is intrinsically motivated, one engages in

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work because the work is enjoyable and stimulating. Examples of intrinsic motivators in the workplace include engaging in challenging assignments, learning new things, accomplishing a goal, and relating well to co-workers. Extrinsically motivated individuals engage at work in the hopes of receiving a reward for their behavior. Examples of extrinsic motivators include bonuses, pay raises, praise, and avoidance of punishment. Scholars have debated the relationship between extrinsic and intrinsic motivators. Deci (1972, p.  224) concluded that extrinsic motivators lessen the intrinsic impact: “…the effects of intrinsic motivation and extrinsic motivation are not additive. While extrinsic rewards such as money can certainly motivate behavior, they appear to be doing so at the expense of intrinsic motivators”. While Hennessy and Amabile (2010) suggest rewards can augment intrinsic impact: “…rewards can actually enhance intrinsic motivation. These boosting effects are most likely when initial levels of intrinsic motivation are already strong.” A recent meta-analysis study demonstrated overall, using incentives leads to higher performance on both interesting and noninteresting tasks (Kim et al., 2022). However, when the performance is measured as quality, the positive relationship between incentives and performance gets weakened. Take some time to form your own opinion. Recall your greatest accomplishment, professional or personal. What was it? Was your pursuit of this accomplishment intrinsically motivated, extrinsically motivated, or a combination of both?

3.3 Process-Based Perspectives Process-based motivational theories focus on the psychological and behavioral processes employees take to satisfy their needs: the how. This section introduces two process-based theories: the Equity Theory of Motivation and the Expectancy Theory.

3.3.1 Equity Theory of Motivation The perception of fairness has a substantial impact on one’s motivation. When we compare our situation with peers and feel that we are not being treated fairly, we feel dissatisfied, which will negatively affect our motivation. If we perceive we are being treated fairly compared to our peers, we feel satisfied, which positively affects our motivation. This perceived unfair distributive justice (check out Chap. 2, Individual Difference) is the basis of the Equity Theory of Motivation (Adams, 1965). Comparing one’s ratio of inputs made to outcomes achieved with that of peers describes the basic Equity Theory comparison (Fig. 3.3). Equity is the belief that one is being treated fairly compared to others. Inequity is the belief that one is being treated unfairly compared to others. A prime example of this is pay satisfaction and the comparison with others. If Gunjan, a member of

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Equity Comparison Outcomes (self) compared with Outcomes (others) Inputs (self) Inputs (others) Fig. 3.3  Equity Comparison Fig. 3.4 Perceived Inequity

the software development team, feels her coding contributions (inputs) are equal to that of others in the department, yet her pay is less than her peers, dissatisfaction and a loss of motivation will occur with Gunjan. Like the need-based perspective discussed earlier in the chapter, one will find it difficult to achieve Growth until inequities (need deficiencies) are addressed. As the diagram below depicts, when faced with the perception of inequity, an employee has several actions available to get to perceived equity and, thus, improved satisfaction. If Gunjan feels she is paid less than her peer with the same contribution level, she may choose to work fewer hours (change input) than her peer to achieve perceived equity. She may request and receive a pay raise (change outcome). After reflection, Gunjan may decide the peer is a stronger performer than she and deserves the higher pay (alter the perception of others). As the Fig. 3.4 shows, there are other options available to get back to perceived equity. Empirical studies showed that if one felt their pay was less than their peers, they felt less satisfied (e.g., Jawahar & Stone, 2011). Additionally, if one felt one was overpaid compared to peers, these participants also felt less satisfied, however more satisfied than when paid less. The highest level of satisfaction occurred when one felt one was paid the same as peers for equal effort (Sweeney, 1990). What’s interesting is that when equity is achieved, not more or less but equity, satisfaction is the highest. An interesting legislative example involving pay equity is taking place in New York City. With the goal of advancing pay equity, in 2021, New York City council members passed the NYC Human Rights Salary Transparency law requiring employers to include a bona fide pay range in all job announcements. This includes jobs,

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promotions, or transfer opportunities. The regulation will likely augment equity and equity perceptions for candidates; however, in the short term, it could exacerbate equity perceptions among existing employees. Candidates likely have a better chance of securing equitable salaries, despite their level of negotiating prowess and their perceptions of equity are validated by the posted pay range. Existing employees, however, may question why their current salary for the same or similar job is outside the range posted. This measure went into effect on November 1, 2022, so the impacts are not yet understood (Salary Transparency in Job Advertisement, 2022). As we consider motivation’s effect on performance, it’s important to look at satisfaction as a means for one’s personal growth and ability to excel. The perception of equity has a significant influence on motivation levels and thus performance. Effective managers understand this and actively work to impact equity perception through management processes such as: employee communications, fair compensation policies, and performance management systems.

3.3.2 Expectancy Theory Victor Vroom’s Expectancy theory (1964) is considered one of the most complex models of motivation theories; however, pragmatically, it can be effective in diagnosing the motivational levels of people. Vroom discussed motivation as a “force” that moves people into action with the expectation that it will lead to rewards. This theory suggests that three components are necessary for motivation to exist: effort-­ to-­performance expectancy (expectancy), performance-to-outcome instrumentality (instrumentality) and outcome valence (valence). A simplified representation of the theory is expressed in the formula:

Motivation  expectancy  instrumentality  valence

Expectancy is the extent to which one believes that if one puts forth adequate effort there is the likelihood that the desired outcome can be achieved. Instrumentality refers to one’s belief that if the desired performance is achieved, the outcome expected will be received. Valence is the value or importance one places on the reward. Let’s use an example to see this theory in action. Vang is the manager at the Coffee-being, a coffee shop hangout frequented by millennials before work. The Coffee-being is short-staffed and it’s creating a stressful work environment for employees and poor service levels for customers. Vang attempts to address this situation by motivating Leah, the informal barista leader, to devise a plan to achieve a 25% improvement in team productivity. If Leah’s plan works and the goal is achieved, each team member will each receive a $250 bonus. Despite Vang’s best attempts to rally Leah, she appears unmotivated to work on this assignment. As the Expectancy theory suggests, if any of the three variables doesn’t exist, motivation doesn’t occur. If Leah feels that the 25% goal is unattainable expectancy

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is absent and she’ll not be motivated to put forth effort. If Leah doesn’t trust Vang’s ability to obtain the owner’s approval to pay the spot bonus, instrumentality lacks because she feels even if the team accomplishes the goal, the outcome won’t be received. Finally, if Leah feels the $250 isn’t of value to her or the stressed-out team, without valence, motivation won’t exist. Vang is an effective and supportive manager, so following a discussion with Leah to get her input he uses the Expectancy Theory framework to adjust the task. Vang lowers the goal to 15% (strong expectancy), obtains owner preapproval of a monetary request (strong instrumentality) and changes the reward to a fun-filled team outing at an escape room (strong valence). With these changes, Vang was able to motivate Leah to devise a plan that guided the team to deliver a 20% improvement in productivity which also improved customer service levels.

3.4 Learning-Based Perspectives Learning-based theories look at the causes of an action, the consequences and use this to understand behavior or, more importantly, how a behavior is changed. In this section, we will discuss Traditional versus Contemporary views of Learning, Reinforcement Theory including Gamification and Social Incentives, and Social Learning.

3.4.1 Traditional Versus Contemporary Views of Learning Traditional Learning focused on conditioning to create a learned response. “Pavlov’s Dog,” for example, was conditioned that when hearing the bell, it would salivate, whether food was present or not (Pavlov, 1927). In business, a similar conditioning may be created by marketeers when we buy something without much thought simply because it is labeled with “clearance” or “sale.” Traditional Learning suggested we are conditioned to respond to a stimulus in a particular way. Social Learning theory is a contemporary view of learning authored by Latham and Saari (1979). This theory acknowledges that human thought, affect, and behavior are influenced by observation and experience. People do not just react to external influences; rather, they select, organize, and transform those stimuli that are presented to them.

3.4.2 Reinforcement Theory Operant conditioning, proposed by Skinner (1938), extended Pavlov’s classic conditioning theory and is based on Thorndike’s law of effect (1927), which suggests behavior is influenced by its consequences. Presenting or removing different types

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of stimuli will result in changes in behaviors. This perspective differs from the needs-based perspective as Skinner argued that inner needs are not important. One’s behavior is simply driven by the consequences associated with it. Consider an employee who arrives on time for his shift and receives a genuine thank you from the supervisor. This happens each time the employee arrives on time. Over time, the employee becomes conditioned to consistently arrive on time because of the pleasant consequence that results, receiving gratitude. Stimulus used to influence behavior is categorized along two dimensions: reinforcement (increasing behavior) versus punishment (decreasing behavior) and stimulus application (presenting versus removing). Consider our employee arrival time example along these dimensions in the grid below (Table 3.1). Applying this learning-based perspective is commonplace in organizations to align employees’ behavior with organizational goals. For instance, performance management systems withhold annual merit increases for employees performing below expectations; punishment by removing positive reinforcement. Auto dealers drive revenue with finance and insurance manager bonuses for extended warranty add-on sales: reinforcement by presenting positive stimulus. Retailers improve cashier efficiency by removing the red warning display button from monitors when the efficiency target is achieved: reinforcement by removing negative stimulus. Another consideration with this learning perspective is the reinforcement schedule of the stimulus. Stimulus may be continuous or intermittent. When there is a positive stimulus (which is the consequences) every time the behavior occurs, that is considered a continuous schedule. For instance, an Uber driver receives positive reinforcement, compensation, for each client ride completed. During an axe throwing competition, a player is punished each time her score exceeds 21 (bust) and she must start over at a score of zero. Intermittent schedules introduce the stimulus occasionally and often unpredictably. It is most effective in situations requiring the reinforcement of continued efforts. The video game Doom is a great example. A player must pass several challenges to be rewarded a weapon, health pack, or access to new maps. The pace of receiving these rewards varies depending upon the player’s game proficiency. In the work environment, it may be difficult to provide reinforcement or punishment at a continuous rate, so it is more common to use the intermittent schedule. Table 3.1  Stimulus application Behavior Modifier Reinforcement Increase behavior Punishment Decrease behavior

Stimulus application Present Positive reinforcement Supervisor praises employee for being prompt. Employee continues this behavior. Punish: Present negative stimulus Supervisor frowns and looks at watch when employee arrives late to work. Employee stops arriving late.

Remove Negative reinforcement Supervisor stops frowning and looking at watch when employee arrives on time. Employee starts arriving on time. Extinction: Remove positive stimulus Supervisor withholds praise when employee arrives late. Employee starts arriving on time.

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The following are types of stimulus schedules with applicable workplace examples. Fixed-Interval Schedule A fixed interval schedule provides stimulus via a fixed set of time. For instance, many organizations issue bi-weekly paychecks to employees. The timing of this is a fixed fourteen-day interval. Fixed-Ratio Schedule A fixed-ratio schedule provides stimulus when the action is achieved a certain number of times. A company disciplinary policy that requires termination after three unresolved documented infractions is an example of a fixed-ratio punishment schedule. A positive reinforcement fixed-ratio example is a residential leasing agent’s financial incentive received each time after securing five signed leases. Fixed ratio schedules tend to be effective in shaping new behaviors, but they can contribute to employee burnout. Variable Interval Schedule A Variable interval schedule provides stimulus over varied periods of time. For instance, promotions at most organizations follow a variable interval schedule. Promotions are awarded when employees accomplish agreed upon results. The time it takes to achieve those results, such as acquiring new skills, taking on expanded responsibilities, or completing special tasks, varies from employee to employee; so the time interval to earn a promotion varies TOO. Variable Ratio Schedule A variable ratio schedule is the most flexible schedules and tends to be situational based. Spot bonuses are unexpected financial awards given to an employee for achieving a particular performance, and they do not come with the expectation of being repeated. Verbal compliments from a supervisor also often follow this schedule. These rewards are often a welcomed and enjoyable surprise for employees. This type of schedule is effective in motivating employees.

3.4.3 Extensions of Reinforcement Theories 3.4.3.1 Gamification The use of gamification is growing in popularity due to its effective use of reinforcement techniques to influence employee behavior and improve productivity. “Gamification is the use of game elements – point-scoring, levels, competition with others, measurable evidence of accomplishment, ratings, and rules of play – in nongame contexts” (Mason, 2018, p. 1).

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Amazon has used gamification to improve productivity in their fulfillment warehouses by diminishing the boredom associated with its physically demanding jobs. The games, which were developed by Amazon, tracks task completions by participating employees and can put individuals, teams, and entire floors in opposition of each other in their efforts to store product. Employees receive rewards such as virtual badges, points, and other items throughout their shift (Bensinger, 2019). The rideshare and online food ordering industries use gamification within their applications to motivate drivers to achieve organizational performance goals. Lyft, for example, influences driver behavior by issuing weekly challenges, such as a targeted number of rides completed within a certain timeframe to receive a financial bonus. The drivers must voluntarily opt into these challenges. This can work to increase the enthusiasm of the driver to work toward achieving the goal (Mason, 2018). I became interested in the use of these gamification applications after listening to my twenty-something children compare their dashboard stats from Door Dash’s driver application, Dasher. What a great way for me to research gamification first-hand. Upon signing up to be a driver, I was quickly drawn into the need to achieve impeccable dashboard results. I managed to nail the first weekend goal set for me of 25 deliveries, which earned me a $200 bonus. The dashboard proudly displayed my 100% orders accepted, 100% orders completed and 100% on-time deliveries. While the money didn’t amount to much nor was it of significant value to me, achieving perfection with my dashboard statistics did. Seeing those perfect scores gave me a great sense of satisfaction. According to Dasher, I was a rock star and boy, did it feel good! I was fascinated by my emotional change when my on-­ time deliveries metric was blemished due to a temporary police closure of a crucial on-ramp needed for two deliveries. The Dasher app failed to recognize this closure and I was unjustly penalized with two late deliveries on my dashboard. I felt dejection. I continued Dashing for a couple more weekends, but soon my interest in these gamification challenges waned. Door Dash nudges me now and again to get back in the game with special production promotions, but I’m on to more rewarding challenges like writing this chapter. 3.4.3.2 Social Incentives Another area of study within the reinforcement realm is social incentives. The APA Psychology Dictionary defines social incentives as “an inducement to behave in approved ways, involving the offer of such interpersonal rewards as acceptance, approval, inclusion, or status.” Simply put, people are motivated to “fit in” socially (Cialdini & Goldstein, 2004). For instance, many have heard examples of employees who reduce their productivity to align with others, gaining acceptance by succumbing to peer pressure. Employees learn to play golf to be included in and enjoy the status that comes with participating in the informal meetings on the course. Social incentives can be potent rewards to induce behavior change, and nowhere is that more evident today than on social media.

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Influencer marketing on social media is increasingly used by companies to leverage the power of social incentives to grow their business. An increasing presence of influencer marketing exists within college sports. With the NCAA’s recent passing of the Name, Image, and Likeness (NIL) rule, college athletes are allowed to earn compensation from brands in exchange for authorization to market the athlete’s name, image, and likeness. Paige Bueckers, a player on the University of Connecticut’s women’s basketball team, has become a key influencer within the niche of basketball. With Paige’s 1  million Instagram followers, brands such as Gatorade, Bose, Crocs, and others have signed NIL deals with Paige, making her a millionaire at the tender age of twenty-one. Paige’s followers, basketball-­enthusiasts, look to Paige to identify “drip” brands (those with a cool sense of style). These followers are lured by the reward of earning social status thru buying products endorsed by Paige.

3.4.4 Social Learning Much of what we have learned and has shaped our world views can be attributed to the social environment we have experienced. Culture, heritage, society, and where we live influence us and our perspectives. Social Learning in an organization occurs when people observe the behaviors of others, recognize the consequences of those behaviors, and then alter their own behavior as a result. Social Learning theory acknowledges that human thought, affect, and behavior are influenced by observation and experience with others. The Social Learning theory described by Lathan and Saari (1979) puts into perspective how interaction with peers, along with clear direction, influences a change in behavior. Their study focused on supervisor training and the effects of providing some supervisor trainees with clear instructions on and expectations for the training program prior to participating. These supervisors were intermingled with the remaining trainees and the results of the training were measured compared to a control group. The study showed positive results from the training months after completion. It confirmed that giving a portion of the trainees clear direction had a positive effect on the remaining training group through social Learning. The 2014 ALS Ice Bucket Challenge is a great example of the power of combining social media and social Learning. Patrick Quinn and Pete Frates, both suffering from ALS, witnessed the Ice Bucket Challenge on the social media feed of family and friends of Anthony Senerchia, who had recently died of ALS. Patrick and Pete turbocharged this campaign to raise awareness of ALS. The campaign quickly went viral as viewers of the videos witnessed the joy experienced by friends, neighbors, and celebrities of pouring a bucket of ice water on their heads and challenging others to do the same. At its conclusion, the campaign raised $155 million for the ALS Association and over $220 million around the world (The ALS Association, 2019).

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Topcoder Use of Gamification, Social Incentives, and Social Learning Topcoder is an information technology software development staffing firm that uses crowdsourcing to fulfill client needs. It utilizes a complex system of gamification, social incentives, and social Learning to deliver high-quality custom software solutions to its clients in a low-cost manner (Lakhani et al., 2010). Topcoder’s business model utilizes a series of competitions between community members to deliver software codes that solve complex development challenges or software components and applications to meet client needs. Competition winners are rated using company-developed algorithms or expert peer reviews. An elaborate use of public profiles is used to allow members to compare their performance to others. Profiles include the member’s username, contest history, basic personal information, and the member’s rating for each type of contest participated in. The rating scale is color-coded. Elite performers receive the coveted “red” status, which garners status and prestige from fellow programmers. Member profiles also included their country rank, total community rank, competition success rate, and reliability of percentage of passing solutions in contests participated in. Members could also choose if their earnings were displayed. This elaborate profile system allows members to compare themselves with others. Members compete both within a particular competition and with their performance overtime. This contributes to the motivation levels of the community, often logging all-nighters in their quest to win. Topcoder members agree that competing provides opportunities to learn and improve. Post contest evaluations and peer reviews of submissions are effective methods of feedback that allowed members to grow and develop. Members credit continual learning opportunities from peers as a key reason to compete. Topcoder also has collaboration forums that allowed less-experienced members to ask questions of and receive immediate feedback from more-experienced experts. A sense of community exists among members.

3.5 Applying Motivational Theories at Work Creating an environment that systematically enhances motivation is key to organizational success. Two components of that environment are designing jobs that are inherently enriching and putting a rigorous employee goal-setting system in place. This section will discuss how the Job Characteristics Theory (JCT) and the Goal Setting Theory can be applied to serve these purposes.

3.5.1 Job Characteristics Theory Job characteristics theory (JCT) is an important contemporary model focused on designing jobs to make the work inherently enriching for employees. In the early work of Hackman, Lawler, and Turner (Hackman & Lawler, 1971; Turner &

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Lawrence, 1965), they built the foundations of objective job characteristics on job design, drawing from Maslow’s needs and the expectancy theories. For instance, employees are more engaged if they believe in the outcomes from demonstrating a behavior; physiological and psychological needs drive employees’ behavior to pursue outcomes; feedback can enhance meaningfulness and effectiveness. The full model determined that employee perception of five task characteristics was essential to meeting higher-order employee needs (Hackman & Oldham, 1975). These task characteristics are as follows: skill variety – different and challenging skills are called upon to complete the task, task identity  – visibility into a task’s beginning, end, and transformation process, task significance – task has significant impact on the lives or work of others, autonomy – feeling responsible for the outcome, and feedback – view of the level of accomplishment, either inherent within the task or from an outside source such as a supervisor. With these five essential task characteristics included within a job’s design, managers can enhance three critical psychological states of employees: meaningfulness of the work, responsibility for the outcome, and knowledge. Research generally supports this theory; however, some shortcomings have been documented including a lack of correlation between performance and job characteristics and the measures used to test this theory are not always valid and reliable. It also can be complex and time-consuming to implement. 3.5.1.1 Task Significance and Beneficiary Contact Subsequent research by Grant et al. (2007) further explored the relationship of task significance and employee motivation. The researchers sought to quantify the impact on job performance of employees having respectful contact with beneficiaries of their efforts. Their study of a college scholarship fundraising organization found that employees who briefly engaged directly with a student beneficiary of their efforts increased their logged phone time by 142% and their funds raised by 171% 1 month after the contact. The control group had no change in either performance metric. This study demonstrated the positive correlation between enhancing task significance through beneficial respectful contact and an employee’s ability to maintain motivation to perform and had been replicated in different fields (e.g., Siciliano & Thompson, 2022; Bellé, 2013, 2014). The importance of leaders establishing a clear line of sight for employees regarding how the job they perform impacts those who use or experience their work is extremely important in giving meaning to and motivation for their efforts. Medtronic, a medical device company, has long appreciated the value in making the connection. Medtronic’s short-version mission is “toward full life,” meaning the company’s purpose is to enable patients (those with cardiovascular and neurological diseases and diabetes) to get up and live active and full lives due to the therapies provided by their products. The vision becomes personal to employees each year when Medtronic invites several patients and their families to share their stories of how Medtronic’s devices have changed their lives. The stories from parents of their small child finally

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being able to run and play with siblings or from the elderly of being able to enjoy their favorite hobbies again are heart-warming and emotionally moving. Often there is not a dry eye in the room. It’s an effective and lasting motivator for Medtronic employees and an annual event that employees are eager to be a part of. 3.5.1.2 IKEA Effect The name IKEA effect was inspired by the Swedish furniture retailer, IKEA, whose products usually require some assembly. Researchers determined that consumers placed more value on products that they participated in the creation and successful completion of (Norton et al., 2012). This concept can be applied to employee motivation through work design. Employees who are asked to get involved in problem-solving and decision-making can feel that same sense of value by participating in the creation of a process, a product, or a policy. The proliferation of the agile methodology across industries, in which self-directed work teams are immersed in the creation of their work solutions, leveraging the IKEA effect to motivate and retain staff is a relevant example of the IKEA effect in the workplace.

3.5.2 Goal Setting and Motivation Successful organizations understand the value of setting clear goals and aligning employees’ behaviors with these desired outcomes to perform efficiently and effectively. Setting organizational goals provides an effective framework for planning and controlling the attainment of these desired outcomes as well as creating employee motivation to perform. Locke and Latham (2002) authored the Goal-Setting Theory. The theory discusses the effects of specific goals on performance and the importance of having clear direction or understanding of the expectations. The theory concludes that high, difficult goals produced the highest level of effort and performance. Locke and Latham assume that behavior is the result of conscious goals and intentions, therefore goals influence behavior (performance). The setting of goals results in engagement of personal commitment to the outcome and provides motivation for a desired behavior. Exceeding the goal provides increasing employee satisfaction. Locke and Latham concluded that the effects of goal setting are very reliable. When leaders set organizational goals that cascade to the broad employee base, it’s important to ensure that these goals are achieved in a manner that aligns with the company’s values. Deluxe Corporation is best known for their origins as “the check company.” In the 1990s, as check usage continued to decline, Deluxe worked diligently to transform itself by exploring adjacent market opportunities in growth segments. Transformation was key to the long-term viability of the company and leaders felt a sense of urgency to achieve this goal. These leaders, however, were

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steadfast in ensuring the company values were maintained through this transition. To that end, each Deluxe employee participated in a rigorous performance management system. This included an annual performance appraisal that assigned equal importance weighting to achieving organizational objectives (the what) and behaving in a manner consistent with the company’s core values (the how). Values such as treating others with respect and dignity, acting with integrity, and being open and honest in communications were evaluated for each employee via a 360-degree review process. This performance management system was effective in motivating employees to achieve objectives in a manner that was consistent with company values. Now consider the opening Wells Fargo case. The “Eight is Great” cross-selling goal was the end goal for Wells’ leaders and the employees were encouraged to use whatever means necessary to achieve that goal. Ultimately, that myopic leadership view led to the demise of top leaders, billions of dollars in company fines, and a tarnished company reputation. Consider again the questions posted following the opening case. How did things go so awry at Wells Fargo? Why is achieving organizational goals such a powerful motivator for employees? How do organizations ensure goals are pursued in a manner consistent with the organization’s values? What responsibility do leaders have to ensure ethical pursuit of the organizational goals they set?

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Srinivasan, S., & Goldberg, J. (2020). Recovering trust after corporate misconduct at Wells Fargo (pp. 120–128). Harvard Business School Case. Sweeney, P. D. (1990). Distributive justice and pay satisfaction: A field test of an equity theory prediction. Journal of Business and Psychology, 4, 329–341. Taylor, F. W. (1911). The principles of scientific management. Harper and Brothers. The ALS Association. (2019, June 4). Ice bucket challenge dramatically accelerated the fight against ALS. https://www.als.org/stories-­news/ice-­bucket-­challenge-­dramatically­accelerated-­fight-­against-­als Thorndike, E. L. (1927). The law of effect. The American Journal of Psychology, 39, 212–222. Turner, A. N., & Lawrence, P. R. (1965). Industrial jobs and the worker. Harvard Graduate School of Business Administration. Vroom, V. H. (1964). Work and motivation. Wiley. Julie Weber-Kramer  has spent most of her 30-year career as a practitioner in various management and leadership roles. With a diverse set of industry experiences, ranging from medical device to hospitality to healthcare technology to financial payments, she enjoys a broad view of organizational behavior and performance. Currently, Julie is an Instructor of Management and Entrepreneurship at St. Cloud State University. Julie also shares her talents and gifts with important causes serving the areas of food insecurity, underserved youth, and animal rescue. Her favorite advice is Trust Your Journey (TYJ).

Part II

Meso Organizational Behavior Topics

Chapter 4

Teams in the Workplace Ye Li

Abbreviations CF Completer-Finisher CO Co-ordinator FIBA International Basketball Federation IMP Implementer ME Monitor Evaluator NBA National Basketball Association PL Plant RI Resource Investigator SH Shaper SP Specialist TW Team Worker Why Superior Team Achieves Inferior Performance? When the horn for competition delivered the sound of excitement and expectations of the basketball fans in the 2006 International Basketball Federation (FIBA) World Championship, the fierce basketball battle between the United States and Greece grasped the heartbeats of all the audience on and off the court. The Dream Team of the United States was newly head-coached by Mike Krzyzewski and collected almost all the National Basketball Association (NBA) star basketball players nationwide, including Antawn Jamison, Brad Miller, Carmelo Anthony, Chris Bosh, Chris Paul, Dwight Howard, Dwyane Wade, Elton Brand, Joe Johnson, Kirk Hinrich, LeBron James, Shane Battier. Supporting such a fantastic team with a legendary coach and all strong players, fans of the Dream Team have been more ambitious than ever to hope for the Gold Medal. In particular, the historical ups and downs of the American basketball team in international competitions, as well as the Y. Li (*) School of Business, Nanjing University, Nanjing, China e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 N. Hou et al. (eds.), Organizational Behavior, https://doi.org/10.1007/978-3-031-31356-1_4

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tremendous support from the national resources, have prepared the Dream Team to fight for renewed glory to reinvent the prosperity of the basketball games. However, to the largest surprise of the whole world, the Dream Team of the United States lost to team Greece with a score of 95–101 in the semifinal competition, which left the Dream Team to end with a possible bronze medal. Specifically, the Dream Team of the United States achieved a 12-point lead at first. Still, it failed to conquer the repeated one-two punches accomplished by Papaloukas and Schortsanitis from the team Greece. Although the breathtaking basketball battle was full of exciting moments exhibiting certain NBA stars’ individual skills and qualifications, the Dream Team as a whole also exposed some inefficiencies and flaws in cooperation, coordination, strategies, and necessary leadership. While it might not be fair to call the bronze medal achievement a “failure” for the Dream Team of the United States, considering the team members’ hard work and sports spirit, it is still a bitter-sweet memory for all the fans with shock, disappointment, and confusion. Individuals, who have such direct and indirect experiences, cannot help asking: How could the Dream Team full of all NBA stars miss the best performance? What constitutes effective team leadership to lead the Dream Team to harvest peak performance? Are there any necessary measures to nurture the upcoming success of the work teams made up of team leaders and members? With such questions in mind, this chapter provides essential information to understand the basic components and dynamics of teams (more than dream teams) in the workplace. Teams and groups are the basic, functional, and prevalent units in organizations, which generally consists of two or more individuals interacting with each other, sharing one common goal, and possessing dependence on each other for work tasks at the workplace (Kozlowski & Ilgen, 2006). Some scholars differentiate the term “teams” and “groups” by emphasizing the assigned positions in teams compared to groups (Mathieu et al., 2017). In the following sections of this chapter, teams and groups are used interchangeably (Cohen & Bailey, 1997). Teams in organizations are just like cells in the human body in that organizational functions need to be manifested through different kinds of teams. This chapter will introduce elemental and prevalent team composition, features, and concepts, followed by an introduction to several representative theories depicting the inside dynamics of teams, which will lead us to highlight emerging topics about upcoming challenges during the post-Covid-19 era for effective team management.

4.1 Team Characteristics There are all kinds of teams in organizations that could fall into different categories of different functions, compositions, and structures. This chapter does not aim to list all the types of work teams exclusively. But it would help to know some prevalent team forms in contemporary organizations. Therefore, with the aim of exemplary illustration, this chapter introduces four types of prevalent workplace teams: management teams, work teams, project teams, and parallel teams (Cohen & Bailey, 1997).

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• Management teams generally comprise managers and supervisors from different units or departments responsible for the organizational operation (Cohen & Bailey, 1997). For example, the top management team consists of department heads. It has authority in the social hierarchy of the company, which usually makes strategic decisions to influence performance, innovation, and corporate social responsibility (Liu et al., 2018). • Work teams are the basic units that deliver service or/and create products in the workplace (Cohen & Bailey, 1997). Such work teams usually have full-time and fixed members shouldering assigned work responsibilities and acting as specific work nodes in the team workflow. For instance, the after-sale service team in the electronic products retailing store is a typical work team that addresses consumers’ various requirements through a wide range of available services, from the primary return and exchange service to the advanced maintenance service. • Project teams are built to accomplish time-intensive projects with limited work resources, which might bring innovation and net profits to the organizations (Cohen & Bailey, 1997). So naturally, project teams draw their members from different functions, which could integrate and utilize the diverse expertise of the team members at certain project stages. After the completion of a project, the project teams disband or engage in the following projects. For example, to design a new mobile application for foreign language learning, the project team would come into being by recruiting team members from information technology, language study, customer service, and other backgrounds. Team members work together to ensure the project team accomplishes the mobile application development with acquired resources in a specific time frame. • Parallel teams exist outside the established structures of the organizations, which recruits people from different functions to offer advice and solutions for emerging problems (Cohen & Bailey, 1997). Specifically, the problem-solving and quality improvement teams are typical parallel teams that help the management authority develop new ideas and integrate resources to guarantee organizational operation. For example, the quality improvement teams focus on process control and outcome control in manufactories to help deliver production orders timely and smoothly.

4.1.1 Norm 4.1.1.1 Definition of Team Norm Team norms are the explicit or implicit rules that discipline and govern the attitudes and behaviors of team members (Feldman, 1984). For example, in some work teams, members don’t like to talk about their salary but would rather talk about each other’s rewards and bonuses (note that salary disclosure is protected in certain states such as Minnesota). Specifically, team norms offer guidance, standards, and requirements to team members to judge the appropriateness of their responses and

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reactions in teams. For example, some football teams lift the key scorers high to express recognition and kiss their jerseys to show their excitement for victory. These ceremonial behaviors directly embody the norms for specific football teams. Furthermore, we can further distinguish the team norms into descriptive and injunctive norms (Cialdini et al., 1991). In particular, descriptive norms depict the most prevalent behavioral pattern in reality for team members, emphasizing what most people do in teams (Cialdini et al., 1991). For example, in a medical team, most nurses keep short haircuts without mocktails. Then, this specific hairstyle possessed by most nurses is a typical descriptive norm. In contrast, injunctive norms illustrate the most approval behavior pattern ideal for team members, emphasizing what most people endorse in teams (Cialdini et al., 1991). For example, in a service team, the team members agree that they should not prey on the clients’ privacy. Then, this specific agreement about protecting customers’ privacy becomes a typical injunctive norm. 4.1.1.2 Functions of Team Norm One famous example of team norms is the two-pizza rule in Amazon. Jeff Bezos proposed that the number of team members in each internal team should be no more than two-pizza shares, which could further facilitate efficiency, agility, scalability, participation, and innovation (Bernet, 2021; Denning, 2019). Team norms generally have four functions, including contributing to the team’s success, predicting the responses from members, protecting team members from embarrassing, and solidifying central values (Feldman, 1984). First, team norms contribute to the survival and success of the teams (Feldman, 1984). The team members generate various behaviors during the social interactions and task accomplishment processes. Some behaviors benefit the team’s goal achievement, while others hinder the advancement toward goal attainment. After the repeated verification and selection of different behaviors, the good behaviors would be kept in the team norms. For example, sharing gossip and complaints might be common in team social interactions. The team would confirm the norm of forbidding such undesirable behaviors when the whole squad discovers the harmful consequences of gossip and complaints. In this sense, such team norms would help the team members communicate more smoothly and get along with each other more harmoniously, which ultimately accelerates the team’s survival and success. Team norms also help simplify and predict the responses and behaviors of team members (Feldman, 1984). Team norms are shared and internalized by all the team members, so they would follow the guidance of team norms to adjust their attitudes and behaviors. For example, suppose a service team maintains the norm of smiling during customer interaction. In that case, the team members are more likely to present smiles even when confronting customer criticisms. Such predictivity and simplification of team members’ behaviors due to the team norm effectively assist the team process management.

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In addition, team norms protect team members from embarrassing and awkward interpersonal situations (Feldman, 1984). Team members may encounter unfamiliar and challenging problems when they interact with each other. For example, when a team member just got married last week, team members are confused about whether to send gifts to the newly married team member. For some teams with the straight work-life segmentation norm, team members tend to separate the work and private life domains. The freshly married team member following this rule will not share their marriage news with other teammates. Even when this newly married team member is willing to share the marriage news, other team members following the work-life segmentation norm will not feel obligated to send marriage gifts. In this way, the team norm helps all members reduce confusing behavioral choices and avoid potential awkwardness in social relationships. Last, team norms solidify the central values and confirm the distinguished identities of the teams (Feldman, 1984). The team members’ behaviors following the team norms reflect what is right versus wrong and what is essential versus trivial for the whole team. This further enforces the team’s core values and symbolizes the unique team identity to other audiences. For example, the uniform rule of the flight attendance crew delivers the core values of being neat and graceful for flight passengers and displaying a professional service identity toward the flight passengers. 4.1.1.3 Origins of Team Norm Furthermore, team norms originate from different sources. • Team norms could come from the  clear advocacy by leaders or coworkers (Feldman, 1984). Leaders generally have control over teams, which makes team members willing to obey the guidance and preference of the leaders. For example, if a team leader dislikes communicating with emails, he or she will ask the subordinates to report face-to-face, resulting in a confirmed team norm. Team norms also come from influential coworkers. For example, if some team members dislike jokes and pranks, the whole team might forbid any jokes or pranks at work, resulting in a no-kidding team norm. A recent interview from Mike Krzyzewski, the well-known legendary basketball coach and the former head coach of the Olympic Gold Medal team of the United States, has clarified social standards in the Olympic teams consisting of individual stars, such as Kobe Bryant, LeBron James, Jason Kidd, and Dwayne Wade. Mike Krzyzewski required all the team players to look into each other’s eyes during the talking and always tell the truth, which is a typical move to set team norms by the team leaders (Sitkin & Hackman, 2011). • Team norms could come from the key events of the team’s developmental history (Feldman, 1984). For example, if a team leader celebrates a team member’s birthday with a salary raise, all the other team members are willing to keep this team norm of raising salaries on their birthdays. Such critical events have marked the team with a unique tradition and a distinguished identity.

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• Team norms could also come from primary behavioral patterns (Feldman, 1984). For example, if the team members hug each other to caress emotions after encountering the first team failure, they might expect to give and receive hugs facing future losses. Such a primary behavioral pattern provides an appropriate response template for all the team members to deal with team failures, which becomes a routine to predict and simplify the team members’ reactions. • Team norms could come from carry-over behaviors in other circumstances. For example, if the current team leader has led a team with a norm of writing the daily summary for work in the previous team, the leader will tend to carry this norm to the new team to enhance management effectiveness. Such carry-over behaviors help accelerate task accomplishment and smooth the interactional process between team members.

4.1.2 Climate 4.1.2.1 Definition of Team Climate Team climates are the shared perceptions of team members about the team social interaction process, task-performing states, and salient team events, which could link team composition characteristics with team outcomes (Kozlowski & Ilgen, 2006; González-Romá et al., 2009). Team climates are essential for team effectiveness because team members’ perception of the situation could determine their work attitudes and behaviors (Mathieu et  al., 2008). However, different teams tend to have different kinds and levels of team climates due to the differentiated internal team dynamics. For example, when a team is made up of skeptical team members, the team tends to form a climate of questioning the team’s decision-making. Although different team climates emphasize various components, this chapter focuses on the typical team climates with abundant empirical evidence. Scholars have demonstrated that team empowerment, psychological safety, and service climate determine the critical consequences for teams (Edmondson & Bransby, 2022; Edmondson & Lei, 2014; Hong et  al., 2013; Maynard et  al., 2013; Walumbwa et al., 2010). 4.1.2.2 Team Psychological Empowerment Climate Team psychological empowerment climate refers to team members’ aggregated belief that they share the accountability for team outcomes and have the necessary power to influence the teams’ surrounding environments (Mathieu et  al., 2006). Specifically, the team psychological empowerment climate has four dimensions: team potency, meaningfulness, autonomy, and impact (Maynard et al., 2013). First, team potency denotes team members’ confidence in the team’s effectiveness (Maynard et al., 2013). Second, team meaningfulness illustrates that team tasks are

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worthwhile in generating benefits for others (Maynard et  al., 2013). Third, team autonomy means the teams have control and discretion over the team working process and decision-makings (Maynard et al., 2013). Finally, team impact shows that the tasks accomplished by the teams are essential in achieving organizational goals (Maynard et al., 2013). Such four dimensions work together as a unitary state to bring in high team performance, more team organizational citizenship behaviors, less absenteeism, more team commitment, and accumulated team satisfaction (Maynard et  al., 2013). Moreover, structural empowerment characteristics (e.g., mechanic organizational structure), organizational support (e.g., supportive organizational rules), and facilitating leadership behaviors (e.g., transformational leadership) could enhance, but team competencies (e.g., team expertise) could hinder the team’s psychological empowerment climate (Maynard et al., 2013). 4.1.2.3 Team Psychological Safety Climate Team psychological safety climate denotes team members’ collective belief about the teams’ safe environment for interpersonal risk-taking, which reflects the associated punishments and rewards for team members’ expression of true thoughts and challenge to the status quo (Koopmann et al., 2016). For example, when employees sense a high level of psychologically safe climate in teams, they are assured about other team members’ tolerance and forgiveness of potential interpersonal disagreements, confrontations, and conflicts. In addition, scholars have verified that specific team leadership attributes such as listening, competence, and transparency, and team characteristics such as supportive team structures, team autonomy, and role-­ based status could enhance team psychological safety climate (Edmondson & Bransby, 2022; Edmondson & Lei, 2014). Generally, a team psychological safety climate could result in positive team outcomes, including team information sharing, team learning, team decision-making quality, team task performance, team creativity, team innovation, and team voice (Deng et al., 2019; Edmondson & Lei, 2014; Koopmann et al., 2016; Newman et al., 2017). However, many scholars also caution against the potential negative influences of team psychological safety climate, such as reduced team average work motivation and dysfunctional team behaviors (Deng et al., 2019; Zhang & Wan, 2021). 4.1.2.4 Team Service Climate Team service climate reflects team members’ shared perceptions about the support, rewards, and punishments of the service policies and rules in the customer service settings (Hong et  al., 2013; Walumbwa et  al., 2010). Although team service and team service climate are both intangible and invisible, they are essential for the ultimate team success. For example, the teams with a high level of service climate are willing to put customers’ benefits first and receive positive feedback from the customers, which wins rewards and bonuses from the administrative authorities.

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Specifically, servant leadership behaviors and service-oriented human resource management practices could nurture a team service climate (Hong et  al., 2013; Walumbwa et al., 2010). As a result, a team service climate could induce enhanced service behaviors, service performance, and service quality from employees, as well as lift job satisfaction, commitment, and other positive attitudes for employees (Hong et al., 2013). Furthermore, the high-quality service delivered by teams with a high team service climate brings in more customer satisfaction and customer loyalty, which leads to increased sales growth, revenue growth, and profit growth (Hong et al., 2013).

4.1.3 Roles 4.1.3.1 Definition of Roles Everybody plays a set of roles in social life. For example, the team members in the legendary hard rock band Guns N’ Roses need to coordinate the differentiated keyboard, bass, guitar (two guitarists), drummer, and singer roles in producing popular songs and featured world tours. In the workplace, roles refer to the expectations of behaviors from the significant others, which offer appropriate guidance and imitative templates for group members’ behaviors (Anglin et al., 2022; Biddle, 1986). Since team members come from different backgrounds with different skill sets, they tend to shoulder various responsibilities and conduct distinguished behaviors in the team process. Such expected behavioral patterns associated with labor division and human capital differentiation determine the concrete roles of team members (Anglin et al., 2022; Biddle, 1986). The assigned roles of the 2022 Argentina Soccer Team are displayed in Table  4.1. To illustrate, the leadership role in teams means the expectations of identifying work directions and providing work resources to the subordinates. In contrast, the subordinate role in teams means following the specified work directions and utilizing the provided resources to deliver work results. Although there may be core roles and noncore roles pertaining to specific tasks in teams, a recent study analyzing the 7070 surgeries in hospitals found that the shared experience between core and noncore roles could enhance the surgical team performance, especially for the less complex team tasks (Vaulont et al., 2021). 4.1.3.2 The Team Role Model Belbin (1981, 1993) has proposed the team role model to denote the differentiated roles for coordinating team members to achieve team effectiveness, which has inspired a lot of academic discussions, practical training, and business consultation (Aritzeta et al., 2007). According to the team role model, nine roles function together to accelerate the team operation (see Table 4.1). These specific roles tend to have various mental abilities, motivations, values, personalities, and constraints (Aritzeta

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Table 4.1  2022 Argentina soccer team roles Team role Completer-finisher (CF) Implementer (IMIP) Team worker (TW) Specialist (SP) Monitor evaluator (ME) CO-ordinator (CO Plant (PL) Shaper (SH) Resource investigator (RI)

Soccer field role Striker Defense Midfield Goalkeeper Coach Captain Creative midfielder Box-to-box midfielder Winger

Player Paulo Dybala Nicolas Otamendi Rodrigo De Paul Emiliano Martines Lionel Scaloni (head coach) Lionel Messi Angel Correa Angel Di Maria Guido Rodriguez

et al., 2007). The general team role balance tenet assumes that teams will function effectively and efficiently only when all the team roles are displayed and arranged according to the teams’ developmental stages (Aritzeta et al., 2007). The concrete team roles are described as follows: • Completer-Finisher (CF). They are primarily concerned about the assigned tasks and agreed work pace, which requires a lot of self-control and self-discipline to deliver the expected results on time. They are also anxious, submissive, and worrisome during the teamwork process because they concentrate on the team goals and monitor the errors and deviations in the teamwork. Eventually, their tolerance and persistence in hard work ensure the expected  success for the whole team (Aritzeta et al., 2007). • Implementer (IMP). They perform concrete tasks and implement all the team plans, reflecting their stable, systematic, efficient work styles. On the other hand, they are also conservative and inflexible in response to coming changes and possible challenges because they have identified with the original action plans. They devote all their time and energy to turning their work plans into reality (Aritzeta et al., 2007). • Team Worker (TW). They are cooperative, mild, loyal team players willing to listen to others and build harmonious relationships. They are also unassertive and uncompetitive in crises because they emphasize social interactions and avoid necessary interpersonal confrontations. In sum, they are the glues that stick the whole team together (Aritzeta et al., 2007). • Specialist (SP). They are experts with professional backgrounds who are interested in and dedicated to solving technical problems. They are also single-­ minded and less interested in social interactions because their sense of achievement comes from conquering professional difficulties. They provide essential knowledge and practical skills to help the whole team undergo the technology transformation (Aritzeta et al., 2007). • Monitor Evaluator (ME). They are dependable and fair-minded in checking the teamwork process and are serious and stable in monitoring the team outputs. They are also discerning about all the alternative options because they are open to errors and changes. Although they lack the motivation and ability to influence

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others, they check the whole team accurately to maintain the right track (Aritzeta et al., 2007). Co-ordinator (CO). They are optimistic and mature in dealing with interpersonal conflicts and are confident and dominant in emphasizing team goals. They are also self-controlled and trusting in delegating authority to others because they tend to make the best of different team members’ advantages. In the end, they act as the bridge to integrate the strengths of all the team members (Aritzeta et al., 2007). Plant (PL). They are original and imaginative in creating new ideas and are radical-­minded and uninhibited in seeking solutions to complex issues. They are also dominant and unorthodox in breaking established rules because they tend to think out of the box to find new approaches. In summary, they are the energetic engines for team creativity and innovation (Aritzeta et al., 2007). Shaper (SH). They are arrogant and competitive in social interactions and are impatient and impulsive in front of interpersonal challenges. On the other hand, they also function well under intense pressure and dare to solve complex problems. However, their reckless behavioral style could hurt other team members’ feelings. Eventually, they fuel the interpersonal and task dynamics in the teams (Aritzeta et al., 2007). Resource Investigator (RI). They are flexible and persuasive in interpersonal interactions, diplomatic, and enthusiastic about accumulating new resources. They are also social and communicative in developing new social contacts because they are willing to extend the team boundaries. In the end, they bring social capital and related resources to the teams (Aritzeta et al., 2007).

4.1.4 Social Loafing 4.1.4.1 Definition of Social Loafing Social loafing illustrates that team members tend to devote less time and energy when working with others than when they work alone (Karau & Williams, 1993). For example, Carlos Henrique Raposo, the so-called greatest yet controversial “professional football player,” has an exaggerated career of more than 20 years fooling around the top football teams by claiming various “injuries” without actually playing in real competitions as a perfect free rider. In the team working process, sometimes, it is hard to trace and monitor every team member’s effort. Then some team members might choose to slack off to become free riders. For example, in a tug-of-­ war activity, when all the team members are pulling the rope with strength, apparently with exaggerated facial expressions, it is still hard to know who is faking the efforts with specific emotional acting. Social loafing is a prevalent phenomenon in organizations, which could cause a lot of losses in human capital utilization and ultimate productivity.

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4.1.4.2 Theoretical Foundations of Social Loafing There are several theoretical views to explain the formation of social loafing. First, according to social impact theory, individuals in certain situations could be either influential sources or targets. When the team leader, as a socially significant source, gives orders to all the team members, as social impact targets, to accomplish a collective task, the overall social impact exerted by the team leaders is divided by all the team member targets. Thus, each team member receives a reduced social impact from the team leader and decides to spare decreased effort in the collective team task. The social impact theory explains why social loafing tends to emerge with the increase of team size (Karau & Williams, 1993; Latané, 1981). Second, some scholars have proposed evaluation potential is the critical factor influencing social loafing. In a collective task, the inputs of all the team members are integrated and blended into the final team outcomes, which makes it challenging to identify and evaluate each team member’s contribution. This ambiguity of accountability and action in the collective output reduces the motivation of team members. However, when the evaluation standard and identification of individual input are clear to the team members, they are more likely to contribute to the team tasks (Karau & Williams, 1993; Williams et al., 1981). Third, whether team members regard their efforts as indispensable influences their engagement in the team tasks, which determines social loafing. If a team member recognizes the indispensability of his or her impact on the team outcomes, he or she might go all out to participate in the team tasks (Karau & Williams, 1993; Kerr & Bruun, 1983). Moreover, team members tend to match their efforts with their coworkers. Put simply, to maintain justice and fairness, the focal employee would exert more (less) effort with high (low) expectations of other teammates’ efforts (Jackson & Harkins, 1985; Karau & Williams, 1993). 4.1.4.3 Social Facilitation Effects However, other scholars have also advocated the social facilitation effects, which means that individual performance could be enhanced in the social presence of others (Bond & Titus, 1983). Specifically, Bond and Titus (1983) conducted a meta-­ analysis of 241 studies to provide support for the social facilitation effects. They reported that the social facilitation due to others’ presence accounts for 0.3–3% of the performance variance in the summarized studies. In particular, other individuals’ presence could accelerate the performance speed for simple tasks but hinder the performance for complex tasks (Bond & Titus, 1983). Furthermore, although other individuals’ presence elicits the focal individual’s physiological arousal for complex tasks, it damages the performance accuracy for such complex tasks (Bond & Titus, 1983). Moreover, other individuals’ presence improves performance accuracy for simple tasks (Bond & Titus, 1983).

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4.1.4.4 Triggers for Social Loafing Recently, some scholars have integrated studies concerning social loafing and social facilitation effects to explain whether team members exert more or less effort in team versus individual work (Torka et  al., 2021). Specifically, according to their analyses, individuals would spend less effort in teamwork compared with individual work when (a) the value of their efforts is not essential to the ultimate team goal; (b) social comparison between team members is not available; (c) evaluation potential is lacking in the team process; (d) they work in ad hoc teams full of strangers; and (e) the team tasks at hand lack meaningfulness (Torka et al., 2021). In this sense, social loafing in teamwork is a complicated process influenced by many factors, which does not necessarily reflect the laziness of team members.

4.1.5 Cooperation and Cohesion 4.1.5.1 Definition and Components of Team Cohesion Team cohesion is the emergent state caused by the combination of different forces that help the team members stick together, which could facilitate team viability and effectiveness (Beal et al., 2003). Team cohesion indicates the current situation of interpersonal dynamic and task process of the team members, which consists of three components (Mullen & Copper, 1994). Among them, the interpersonal attraction component of team cohesion refers to the liking and attachment between team members, which nurtures them with belongingness and trust (Beal et al., 2003; Mullen & Copper, 1994). For example, in a college basketball team, all the team players tend to have a high level of interpersonal attraction because they recognize each other’s strength and charisma. The task commitment component of team cohesion denotes whether the team tasks help team members achieve important team goals and the team members’ commitment level to the team tasks (Beal et al., 2003; Mullen & Copper, 1994). For example, in a charity group, all the team members will have a high level of task commitment in the donation event because such collected money could change the life quality of the people in need. Moreover, the group pride component of team cohesion illustrates the team members’ endorsement of the values, ideologies, and missions of the teams and the proud memberships in the teams (Beal et al., 2003; Mullen & Copper, 1994). For example, team members tend to have a high level of group pride in a medical surgery team because they can work together to save patients’ lives. All three components of team cohesion work together to ensure the teams’ unity, harmony, and solidity. For example, even outside of the workplace, the perceived cohesion of the Alcoholics Anonymous (AA) team could result in more AA attendance, the implementation of AA activities, and increased abstinence (Rice & Tonigan, 2012).

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4.1.5.2 Team Cohesion and Team Performance A hot debate about whether team cohesion is linked to effective team performance has been the research focus of many scholars. In particular, team behaviors have a more robust correlation with team cohesion than team performance outcomes (Beal et al., 2003). Moreover, abundant empirical evidence supports that team cohesion could enhance team performance when (a) the team members have adequate social interaction opportunities and task interdependence; (b) the team size is relatively small; and (c) the focused teams are real teams in the workplace with unique histories but not artificial teams in the laboratories (Mullen & Copper, 1994). In addition, some scholars have summarized the strength of team cohesion-performance relationships in different team settings (Chiocchio & Essiembre, 2009). Specifically, the positive relationship between task cohesion and performance and the positive relationship between team cohesion and team outcomes are both stronger in project teams than those in service or production teams (Chiocchio & Essiembre, 2009). 4.1.5.3 Definition of Team Cooperation Although team cohesion and team cooperation are interrelated, they are different concepts. Team cooperation depicts team members’ willingness to contribute personal efforts to collectively interdependent team tasks, which emphasizes behavioral devotion and actual efforts in the team processes (Wagner III, 1995). Scholars have recognized and demonstrated the neurobiological foundations of synchronized cooperation. For example, alpha oscillatory activity is vital in coordinating individuals’ internal time clock and joint attention in interpersonal cooperation (Mu et al., 2018). Team cooperation represents interactive assistance and reciprocal help transforming individual inputs into collective outcomes (Liang et  al., 2015). Generally speaking, team cooperation is the recognized guarantee for team performance (Kozlowski & Bell, 2013; Lin et al., 2017). 4.1.5.4 Determinants for Team Cooperation Moreover, a set of factors could account for the formation of team cooperation. First, the team composition of team members from different backgrounds poses challenges to team cooperation. Specifically, the diversity of team members’ gender, age, and personalities is negatively related to team cooperation because such diverse team members might have different values, behavioral styles, and preferences in accomplishing the teamwork (Liang et al., 2015). Second, effective team communication consisting of taskwork communication and teamwork communication could enhance team cooperation. Specifically, taskwork communication involves sending and receiving task-related information and generating problem solutions, which could accelerate the easiness and efficiency of team task cooperation (Kozlowski & Bell, 2013). Teamwork communication involves the delivery of

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appropriate social interactive modes and the establishment of interpersonal rituals, which could increase interpersonal harmony and subsequent team cooperation (Kozlowski & Bell, 2013). Third, the team affective tone, representing the similar and unitary affective reactions in teams, could also enhance team cooperation (Lin et al., 2017). The team affective tone depicts the team members’ shared positive and negative emotional states, which could determine the liking and trust toward each other and, eventually, the willingness for team cooperation (Lin et  al., 2017). However, whether social hierarchy increases or decreases team cooperation is still under debate. A recent study analyzing the archival data of the National Basketball Association (NBA) indicates that pay and participation differentiation representing the social hierarchy could enhance intrateam cooperation and subsequent team performance. In particular, scholars have cautioned that such facilitating effect of social hierarchy on team cooperation exists only in basketball as the procedurally interdependent tasks but not in baseball as the procedurally independent tasks (Halevy et al., 2012).

4.1.6 Competition and Conflict 4.1.6.1 Definition and Types of Team Conflicts Team conflicts exist when different team members have psychological or actual tension with each other (De Dreu & Weingart, 2003). Team conflicts are prevalent and inevitable because different team members tend to have various agendas, values, and benefits. It is common that the requirements and standpoints of team members contradict and collide. For example, when the team members decide the reward structure for each member, some members favor the egalitarian style to divide the reward equally for everyone. Still, others might prefer the equity style to allocate the reward according to each team member’s contribution. Due to the different beliefs held by various team members, conflicts naturally emerge. There are three types of team conflicts: task, relationship, and process conflict (De Dreu & Weingart, 2003; Jehn, 1997; O’Neill et al., 2013). Team task conflict refers to the incompatibility between different perspectives and ideas about the task contents, which centers around the work itself (Jehn & Mannix, 2001). For example, when the marketing team is designing a new advertisement for a new shampoo, some team members suggest focusing on the catchy slogan as the primary campaign strategy. Still, other team members disagree and propose focusing on the visual picture as the campaign’s primary strategy. In this case, the team members have task conflict concerning the concrete task content. Team relationship conflict refers to\ interpersonal frictions and affective tensions between team members, which involves disliking, distrust, and frustration among team members (Jehn & Mannix, 2001). For example, in a service team, some members cannot put up with other team members’ personalities and cannot get along. In this case, the team members have a high level of relationship conflict. Team process conflict refers to the disagreement

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about the work procedure, work style, and work means, which centers around how to accomplish the team tasks (Jehn & Mannix, 2001). For example, in a delivery team, some team members propose delivering the goods by car, while others suggest delivering the goods by plane. In this case, the team members tend to have process conflicts. 4.1.6.2 Team Conflicts and Team Effectiveness Scholars and practitioners have long been interested in whether team conflicts enhance or hinder team effectiveness. A meta-analysis has summarized that team task and relationship conflict are detrimental to team performance and satisfaction (De Dreu & Weingart, 2003). Moreover, complex team settings, such as decision-­ making, project, and mixed team tasks, would strengthen the negative influences of team conflicts on team performance (De Dreu & Weingart, 2003). Surprisingly, another meta-analysis found that team task conflict, team relationship conflict, and team process conflict exert null impacts on team innovation, representing the development and application of creative and practical ideas (O’Neill et  al., 2013). Furthermore, team relationship conflict and task conflict are negatively correlated with team potency, which indicates team members’ beliefs about their potential to accomplish the team tasks (O’Neill et al., 2013). 4.1.6.3 Conflict Management Strategies Furthermore, De Dreu et al. (2001) proposed five conflict management strategies based on the dual concern theory, which emphasizes the different weights of concern for self and others. First, the forcing conflict management strategy comes from high concern for self and low concern for others, which means utilizing positional commitments, threats, and persuasion to selfishly force the other party to follow the focal party’s will (De Dreu et al., 2001). Second, the yielding conflict management strategy comes from low concern for self and high concern for others, which means adopting unilateral accommodation, unconditional sacrifice, and proactive helping to selflessly accept and follow the other party’s will (De Dreu et al., 2001). Third, the avoiding conflict management strategy comes from low concern for self and low concern for others, which means ignoring and denying the debated issue and taking no actions to tackle the focused problems (De Dreu et  al., 2001). Fourth, the problem-­solving conflict management strategy comes from high concern for self and high concern for others, which means confirming both parties’ priorities and making trade-offs to achieve a beneficial balance between the two interactive parties (De Dreu et  al., 2001). Finally, the compromising conflict management strategy comes from intermediate concern for self and intermediate concern for others, which means applying matching concessions and necessary threats to establish the middle ground between the two parties to accelerate problem solutions (De Dreu et al., 2001).

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4.1.6.4 Definition of Team Competition Although team conflict and team competition are interrelated, they are different concepts. In particular, team competition refers to the striving for zero-sum outcomes or the achieving relative superiority to team members (Swab & Johnson, 2019; To et al., 2020). Competition between different social entities has neuroscience foundations. For example, scholars have utilized the functional magnetic resonance imaging (FMRI) method to scan the brain activities of 11 Red Sox and 7 Yankees fans. They found that witnessing the supported team’s success or the rival team’s failure could activate the ventral striatum, which reflects the associated pleasure of subjective aggression tendency toward the rival team’s fans (Cikara et al., 2011). Due to resource limitations in teams, team members have to fight for infinite financial, career, and work resources, which results in zero-sum situations involving different gains and losses for team members (Swab & Johnson, 2019). Moreover, team members also tend to engage in social comparison to confirm their work status and acquire self-enhancement, which makes relative superiority in certain areas the main goal for team members’ behaviors (To et al., 2020). Furthermore, team conflict emphasizes the disagreement and incompatibilities of different team members, which does not necessarily involve competition for limited resources or relative superiority (To et  al., 2020). In contrast, team competition emphasizes the struggle to acquire more personal resources or relative self-­ enhancement following the agreed rules or structures in teams, which does not necessarily indicate the incompatibilities of values, standpoints, or work styles (To et  al., 2020). Moreover, team conflict and competition could be bidirectionally related, especially in certain situations. For example, team conflict could escalate into team competition for limited decision-making authorities to impose one party’s will on another party. Team competition could also bring in more team conflict because of the potential paradox between the two parties’ goals and benefits (Swab & Johnson, 2019; To et al., 2020). 4.1.6.5 Categories of Team Competition Team competition mainly manifests in four categories in the work workplace. The first team competition category concerns the competitive reward structure in teams, also called structural competition (To et  al., 2020). The reward interdependence structure is designed to benefit only a few team members. For example, in a sales team, only the top salesperson could get the largest share of annual bonuses. Moreover, scholars have demonstrated that when the team’s external status is not facing a threat, team members tend to strive for status through intrateam competition. In contrast, when the team’s external status is encountering a threat, team members tend to strive for status through intrateam cooperation (Chang et al., 2017). The second team competition category concerns the teams’ climates and atmospheres of competition, which focuses on team members’ perceptions and evaluations of the competition level in their teams (To et al., 2020). For example, a top

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management team consists of leaders from different functional backgrounds. Although the company policy may not explicitly express the reward structure for the whole top management team, the team members might still recognize a high level of team competition climate confronting selfish and self-centered team members. The third team competition category concerns the potential dyads of rivalries within the same team, which means the competition between different people or specific sub-groups (To et al., 2020). For example, in a large research team, some team members forming a small alliance acquire limited resources for developing revolutionary products. In contrast, other team members from a coalition ask for resources to enhance incremental services. The fourth team competition category concerns the competitiveness of team members, which emphasizes team members’ dispositional preference for competition (To et al., 2020). For example, in an athlete team, the team members are highly competitive in skills along with a high level of competitiveness traits, which could also result in a high level of team competition. 4.1.6.6 Team Competition and Individual Performance However, whether team competition facilitates or hinders individual performance is up to different factors (To et al., 2020). First, female competitors tend to have lower intrinsic motivation and performance than male competitors in apparently masculine tasks because the female competitors tend to feel stereotype threats. Such differences between the male and female competitors are not salient when they both engage in gender-neutral tasks and face inter-team competitions (To et al., 2020). Second, previous successful performance would bring in more intrinsic motivation and performance in competition due to increased self-confidence. In contrast, the high level of the opponent’s capability will hinder the focal individual’s performance due to the upward social comparison and resultant perception of hardship (To et al., 2020). It is easy to understand because the two individuals in the competition strive for a better place than the other. Third, the harm expectations from other opponents and the loss salience could induce proactive social undermining toward others because such situations elicit threat appraisals for the focal individuals (To et al., 2020).

4.2 Dynamic of Teams 4.2.1 Stages of Team Development Teams are like humans who have their life circles with different developmental stages. According to Tuckman’s (1965) research about therapy teams, training teams, and laboratory teams, he has summarized the four developmental stages of teams, including the forming, storming, norming, and performing stages. Tuckman’s

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(1965) classic team developmental stage model has inspired a lot of practical policies and academic explorations (Kozlowski & Bell, 2013; Kozlowski & Ilgen, 2006). 4.2.1.1 The Forming Stage The Forming Stage  In this stage, the team members just come together to attempt to get along and work together. Since the first meeting and interaction, team members are collecting information about their peers, the team tasks, the team environment, and the team atmosphere. On the one hand, team members are testing each others’ interactive styles, bottom lines, and acceptable interpersonal activities by reaching out to each other. On the other hand, team members orient themselves to accumulate knowledge about goal setting, work pace, work procedure, and labor division in the team tasks. For example, in a chorus team, team members are at first strangers to each other. They have to socialize to get information about each member’s vocal characteristics and selected songs. In sum, team members get to know each other and the assigned team tasks in the initial forming stage (Tuckman, 1965). 4.2.1.2 The Storming Stage The Storming Stage  In this stage, team members tend to have different opinions, standpoints, and perspectives about identifying and accomplishing the team goals, which could arouse various intragroup conflicts. The different approaches from different team members may be contradictory, confusing, and controversial, and team members tend to argue with each other and strive for dominant influences. Besides, the emotional reactions toward task demands are very salient because team members tend to have resistance and disagreements in the task assignment processes. The key features in this stage are the lack of shared understanding about the team tasks and the lack of forgiveness among team members. For example, the team members in the chorus team are fighting for the assigned vocal parts and arguing for the self-righteous coordination plans in the storming stage. In sum, team members strive for relatively advantageous status in social interactions and negotiable task demands in the storming stage (Tuckman, 1965). 4.2.1.3 The Norming Stage The Norming Stage  In this stage, team members are gradually settling down with acceptance of each other’s merits and limitations. Specifically, team members have achieved a high level of harmony because they have found constructive solutions to their conflicts after repeated explorations. In this sense, the whole team is characterized by social cohesion based on shared emotional feelings about the team members and the team tasks. Moreover, team members are willing to openly exchange their ideas, thoughts, and perspectives about the team tasks, work procedures, and goals.

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For example, team members have agreed upon their vocal parts and found socially acceptable rules to get along with each other in the chorus team. In sum, team members have established social norms for appropriate social behaviors and confirmed effective work procedures with specific means to accomplish work tasks (Tuckman, 1965). 4.2.1.4 The Performing Stage The Performing Stage  In this stage, team members are clear about their respective roles and the agreed role structure of the teams, which makes it easy for them to cooperate to solve the emerging problems inside and outside the teams. Team members have fallen into different functional categories. They have prepared their skills, knowledge, and experiences to work together as an effective entity in the workplace, which all together guarantees the teams with elicited team performance. In addition, team members are seasoned at working together to come up with constructive solutions and novel proposals to tackle various team problems. Such intellectual integration and emotional unity are critical resources for achieving desirable team outcomes. For example, the team members suitable for different vocal parts in a chorus team could finally go on the stage and deliver beautiful music to the audience. In sum, team members are satisfied with their functionality and willing to devote energy to accomplishing the team tasks efficiently and effectively in a collective way. 4.2.1.5 The Input-Process-Output Model Although the four developmental stages of the teams are summarized intuitively to facilitate an easy understanding of the teams’ life circles, Tuckman’s (1965) developmental stage model does not address the internal underlying functional process of teams. In contrast, the input-process-output model provides more detailed information about team effectiveness’s operational and functional mechanisms (Hackman, 1987; Salas et  al., 2004; Tannenbaum et  al., 1992). Specifically, individual team members’ characteristics (e.g., knowledge, abilities, and personalities) and team characteristics (e.g., power structure, team resources, and team composition) are the typical inputs of team effectiveness. In addition, the intermediate team processes consist of interpersonal processes (e.g., communication and coordination) and task processes (e.g., decision-making and problem-solving). Finally, the team outputs mainly denote the quality and quantity of team performance, innovation, satisfaction, and other consequences (Salas et al., 2004; Tannenbaum et al., 1992). Moreover, external environments could also influence the repeated team input-­ process-­output circle (e.g., organizational reward system, organizational culture, and environment dynamism). On the other hand, it is easy to understand such a team process compared to a complex production machine. Specifically, we add the raw

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materials (i.e., the team inputs in this case) into the machine, and the machine would run through multiple, invisible and systematic processes. Finally, we can get the products as the outputs from the machine. To summarize, the input-process-output team model enables us to build a symbolic, coherent, and dynamic picture of the team effectiveness.

4.2.2 Punctuated Equilibrium Paradigm Changes are inevitable for teams to survive and prosper in the ever-changing, dynamic, and uncertain business environment worldwide. Therefore, when we dig into the evolution and adaptation of teams, the punctuated equilibrium paradigm helps delineate the potential change processes in teams. Furthermore, the punctuated equilibrium paradigm of teams assumes repeated alternations between incremental adjustments and abrupt revolutions, which indicates a “punctuated equilibrium” in the team progress and development (Gersick, 1991). Specifically, the developmental change process of teams involves a relatively longer duration of stability and somewhat shorter periods of upheavals. 4.2.2.1 The Deep Structure In the punctuated equilibrium paradigm, the deep structure maintains the basic stability of the teams, which resists, offsets, and absorbs the shocks from abrupt changes. Eventually, the deep structure of the teams might be altered by the accumulation of different sudden changes (Gersick, 1991). For example, the deep root of a tree could protect the tree from windy weather. However, if the wind amounts to a tornado, the tree could be pulled off from the ground, and the giant tornado could destroy its deep root system. Specifically, the deep structure comprises differentiated parts that find a way to work together. The deep structure, constantly exchanging resources with the external environments, could maintain its core feature by controlling the differentiated parts in various choices and activities (Gersick, 1991). The deep structure of teams seems like a jellyfish. Although the shape of external body parts changes with the flow of the ocean, acquiring essential nutrition from the water, the deep inner structure of the jellyfish stays the same. In the case of teams, the deep structure consists of basic performance strategies, interactional patterns, work approaches, and the corresponding environment. Moreover, in the equilibrium periods, the activity patterns and the choices of the teams stay the same as before. In this sense, the deep structure of teams maintained the same despite some superficial interruptions. However, teams only make minor adjustments to the external environment without threatening the core functional structure of teams. Generally speaking, the cognitive, motivational, obligation, and benefit reasons could account for the stability in the equilibrium periods. First, people may not realize an alternative approach to operating teams since their cognition

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narrowly focuses on the conventional approach. Second, team members might fear the potential loss, uncertainty, and failure generated by new explorations, constraining the motivational force to break the extant equilibrium with innovative methods. Third, team members already have commitment and obligation to the old system, which makes them reluctant to abandon the current equilibrium states. Forth, the equilibrium periods could benefit the teams with accelerated efficiency and guaranteed effectiveness in task accomplishment and resource acquisition, making the equilibrium a much better choice for the current teams (Gersick, 1991). 4.2.2.2 The Revolutionary Periods The revolutionary periods are characterized by radical changes that could totally rewrite the deep structure but not incremental changes in the equilibrium periods maintaining the game. The original deep structure would melt down first in the revolutionary periods, leaving the old parts fragmented. Then the old parts and the new components could be integrated, which gives space to the emergence of new rules. Once the deep structure is broken down, all the corresponding parts depending on it would also fall apart. For example, if a research team has to deliver customer service, the research team’s basic function of innovation has to expand to include interpersonal service. In this sense, the original assigned roles and performance standards are subject to enormous changes to meet the refreshed task requirements. Moreover, internal and external changes could account for the occurrence of revolutions. First, as with the developmental process of teams, the differentiated components of the deep structure might become misaligned with each other, which causes internal strain for revolutionary changes. Second, the external environment is usually dynamic and uncertain, which could pose various threats to the resource exchange abilities of the teams. Thus, teams facing internal changes or/and external changes always experience enough failure to break up their inertia to embrace the upcoming revolutions (Gersick, 1991). Applying a similar logic, Gersick (1988) proposed that teams went through the developmental process by taking turns to experience inertia and revolution during the task accomplishments in specific periods. Specifically, the evolving processes of teams are not linear or follow fixed modes in particular sequences, such that teams have the potential to transform abruptly with the sudden changes of the external environment. For example, if an emergency team aims to solve a new crisis, the emergency team might not have enough time or resources to go over the regular team stages step by step. Instead, the emergency team could become mature right after handling internal challenges and external crises. Generally speaking, each team’s history could be unique, and there is not one best developmental way to fit all teams. For example, the project teams go through the beginning, transition, and end stages. At first, the project teams are seasoned at carrying out the conventional rules and behavioral patterns. Until some time points, the project teams have accumulated enough information and knowledge about the boundaries, limitations, and even hindrance of the conventional approaches

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embedded in the original deep structure. In such a phrase, the project teams have suffered enough failure to realize the need for change. Then the project teams start to go through the time-limited transition periods by soliciting outside opinions, expanding old social networks, and acquiring new resources to form new rules for the team operations. Finally, the project teams fall back into the loop of new beginning, transition, and temporary ending phrases (Gersick, 1988).

4.2.3 Team Learning and Knowledge Management 4.2.3.1 Definition of Team Learning Team learning refers to a continuous process in which team members explore, share and accumulate knowledge with repeated reflection and actions to achieve knowledge exchange, behavioral changes, and team adaptation (Mathieu et  al., 2008). Specifically, team learning is a multilevel interaction process involving both individual and collective learning, which is dynamic, iterative, and progressive (Bell et al., 2012). There are three main theoretical approaches to understanding the team learning process: the regulation approach, the information processing approach, and the macrocognition approach. The regulation approach emphasizes individual and team level goal setting, action regulation, and team emergent states in team members’ knowledge and skill acquisition (Bell et al., 2012). The information processing approach explains the interactive social process in which team members acquire, share and manage information (Bell et  al., 2012). Finally, the macrocognition approach illustrates individual knowledge acquisition, the transformation from personal knowledge to collective knowledge, and the interdependent knowledge adaptation in the collaborative decision-making and team knowledge-building process to solve complex problems (Bell et al., 2012). 4.2.3.2 Knowledge Sharing The team learning process could generate new collective knowledge, shared mental models, and effective team performance (Bell et al., 2012; Kozlowski & Bell, 2013; Mathieu et al., 2008). Since the team learning process mainly involves the sharing, co-creation, and retention of knowledge by team members, the effectiveness of team learning heavily depends on team members’ knowledge-sharing and knowledge-­ hiding behaviors. Knowledge sharing denotes that team members provide task-­ related information to each other to facilitate problem-solving, decision-making, and innovation (Wang & Noe, 2010). Knowledge sharing can happen in several ways, including face-to-face communication, hand-written documents, and even other indirect channels in social networks (Wang & Noe, 2010). As a result, knowledge sharing could enhance the utility and efficiency of knowledge, save costs, and bring benefits to teams (Wang & Noe, 2010). In addition, scholars have

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demonstrated that team cohesion, empowering team leadership behaviors, and positive team communication styles could enhance team members’ knowledge sharing (Wang & Noe, 2010). 4.2.3.3 Knowledge Hiding Knowledge hiding indicates that team members’ intentional withholding and concealment of knowledge requested by other team members (Arain et  al., 2022). Notably, knowledge hiding is not the exact opposite of knowledge sharing since knowledge hiding has its own dimensions and characteristics (Arain et al., 2022). Although knowledge hiding negatively correlates with knowledge sharing, knowledge hiding could explain incremental variance beyond knowledge sharing in the team and organizational outcomes (Arain et al., 2022). In detail, knowledge hiding has three agreed dimensions including evasive hiding, playing dumb, and rationalized hiding. Evasive hiding emphasizes the intentional deception of hiding knowledge by lying or twisting the requested information and expertise (Arain et  al., 2022). Playing dumb points to the pretended ignorance of knowledge hiders, which utilizes explicit dumbness to obscure the knowledge exchange (Arain et al., 2022). Rationalized hiding explains the justification after the calculation between benefits and costs for knowledge hiding (Arain et al., 2022). Knowledge hiding falls into the workplace deviance category, which could result in enormous social and economic damage to teams and organizations (Arain et al., 2022). Specifically, knowledge hiding could induce decreased task performance, creativity, and job satisfaction, as well as increased turnover intention, reciprocal knowledge hiding, and distrust (Arain et  al., 2022). Moreover, scholars have demonstrated that job insecurity, perceived competition, and workplace mistreatment in teams could induce more knowledge hiding. In contrast, interactional justice, task interdependence, and a knowledge-sharing climate could mitigate knowledge hiding (Arain et al., 2022).

4.2.4 Team Leadership 4.2.4.1 Team Leaders’ Four Main Functions Teams are composed of members who generally shoulder leader and subordinate roles. Intuitively, leaders are vital in nurturing team effectiveness based on scholars’ and practitioners’ direct and indirect experiences. But why? The core of team leadership lies in the social problem-solving process, which requires team leaders to utilize necessary information to solve management problems in a team social context (Burke et al., 2006; Zaccaro et al., 2001). Such a functional perspective of team leadership emphasizes the four concrete functions of team leaders (Fleishman et al., 1991).

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First, information search and structuring denote that leaders should collect, analyze, and share information about the task goals and mission contents with team members (Zaccaro et al., 2001). Specifically, team leaders help interpret the organizational vision and translate the macro organizational strategies into micro collective team activities. In this process, team leaders gather information inside and outside the teams to exert control over work procedures and goals (Burke et  al., 2006; Zaccaro et  al., 2001). Team leaders also need to select and evaluate vital information to give feedback and guidance to team members (Burke et al., 2006; Zaccaro et al., 2001). Second, information use in problem-solving means that leaders make the best available information to form problem solutions and plan task arrangements for team members. Specifically, leaders should utilize the acquired information to identify the core task requirements and the corresponding work needs of team members. Then, leaders are responsible for making effective plans with differentiated role expectations for team members. In this process, team leaders deliver the team plan information to team members intending to integrate the knowledge, skills, and intelligence of team members for team goal attainment. When team leaders share this information with team members, team members are clear about the expected team coordination within teams for task accomplishment (Burke et  al., 2006; Zaccaro et al., 2001). Third, managing personnel resources refers to team leaders employing social skills and management tactics to obtain, allocate, and motivate the personnel resources in teams. Specifically, team leaders need to get appropriate personnel resources by recruiting new team members and matching team members with suitable task assignments. In the working process, team leaders should also help, guide, and instruct the team members to develop and cultivate their capabilities, skills, and qualifications. Moreover, to guarantee the quantity and quality of teamwork, team leaders might devise different measures to enhance the work motivation of team members, which could result in a high level of team morale and subsequent team productivity. Finally, when working closely with team members, team leaders should monitor the work pace, work procedure, and work attitudes of team members, aiming to strike a balance between process control and outcome control in leading the teams (Burke et al., 2006; Zaccaro et al., 2001). Fourth, teams do not function in a vacuum, so team leaders must manage material resources. Specifically, managing material resources illustrates that team leaders need to acquire, maintain, and utilize material resources to achieve the team goals with team members. In fact, material resources are the foundation for the successful implementation of team plans since material resources enable product production and service delivery in teams. Generally speaking, team leaders should negotiate with external stakeholders to obtain the necessary material resources for the teams. They should also carefully allocate, protect, and invest the material resources to create a good work environment for team members, which could finally transform into desirable team outcomes. In addition, the efficiency of monitoring and utilizing the material resources could also promote the effective management of personnel resources.

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4.2.4.2 Person-Focused Team Leadership Behaviors To achieve the four functions mentioned above, scholars have summarized various kinds of team leadership behaviors into two main categories: task-focused team leadership behaviors and person-focused team leadership behaviors (Burke et al., 2006; Fleishman et al., 1991; Ceri-Booms et al., 2017). Specifically, person-focused team leadership behaviors aim to build positive relational team climates and care for the social needs of team members (Ceri-Booms et al., 2017). In addition, person-­ focused team leadership behaviors facilitate smooth interpersonal interactions and develop necessary attitudes for team operations (Burke et al., 2006). In this sense, person-focused team leadership behaviors concentrate on the teamwork process and the person factors in teams (Burke et al., 2006; Ceri-Booms et al., 2017). For example, how to make team members work together happily is one of the most salient missions for person-focused team leadership behaviors. In addition, person-focused team leadership behaviors could generally promote subjective and objective team performance (Burke et al., 2006; Ceri-Booms et al., 2017). As summarized by scholars with empirical evidence, this chapter introduces six representative person-focused team leadership behaviors (Burke et al., 2006; Ceri-­ Booms et al., 2017). • Transformational team leadership behaviors denote elevating team members’ motivation to go beyond the regular performance standards to enhance team effectiveness with clear visions, intellectual challenges, and customized support (Ceri-Booms et al., 2017; Wang et al., 2011). • Charismatic team leadership behaviors illustrate that team leaders make the best of their personalities, capabilities, and characters to impress the team members with vision delivery, need satisfaction, and socialized identification (Banks et al., 2017; Ceri-Booms et al., 2017). • Empowering team leadership behaviors mean that team leaders remove the constraints on team members’ job autonomy and delegate the authority to team members through participative decision-making, information sharing, and seeking engaged inputs (Ceri-Booms et al., 2017; Lee et al., 2018). • Coaching-focused team leadership behaviors describe that team leaders give instructions, guidance, and directions to facilitate team members’ growth and improvement in abilities, skills, and qualifications through critical feedback, task challenges, and supportive explorations (Ceri-Booms et al., 2017; Ely et al., 2010). • Emotionally intelligent team leadership behaviors emphasize the function of team leaders’ emotional intelligence in understanding, regulating, and utilizing their own and team members’ emotions in solving social problems in teams through empathetic consideration, emotional appeal, and constructive conflict management (Ceri-Booms et al., 2017; Schlaerth et al., 2013). • Consideration team leadership behaviors explicate that team leaders adopt a humane approach to care for team members’ personal needs and relevant situations to unite the team members as well as articulate positive attitudes through

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two-way communication, mutual respect, and reciprocal trust (Ceri-Booms et al., 2017; Judge et al., 2004). 4.2.4.3 Task-Focused Team Leadership Behaviors In contrast, task-focused team leadership behaviors emphasize boosting team members’ task commitment, involvement, and engagement as well as assigning concrete role responsibilities with allocated resources to team members (CeriBooms et al., 2017). Furthermore, task-focused team leadership behaviors clarify task requirements with analyzed information and confirm work procedures to achieve task performance (Burke et  al., 2006). In this sense, task-focused team leadership behaviors focus on the taskwork process and the task factors in teams (Burke et al., 2006; Ceri-Booms et al., 2017). For example, one of the most salient missions for task-­focused team leadership behaviors is how to achieve the quality and quantity of team tasks effectively. Task-focused team leadership behaviors could result in subjective and objective team performance (Burke et al., 2006; CeriBooms et al., 2017). As summarized by scholars with empirical evidence, this chapter introduces three typical task-focused team leadership behaviors (Burke et  al., 2006; Ceri-­ Booms et al., 2017). • Initiating structure team leadership behaviors show that team leaders analyze the task requirements, make work plans, and create role assignments to generate a clear road map for team members to accomplish team tasks with concrete team goals and work methods (Ceri-Booms et al., 2017; Judge et al., 2004). • Transactional team leadership behaviors explain that team leaders adopt an exchange approach to motivating team members with contractual rewards and punishments as well as active and passive exception management (Ceri-Booms et al., 2017; Judge & Piccolo, 2004). • Boundary-spanning team leadership behaviors focus on team leaders’ endeavors outside the teams to negotiate resources, extend the social networks, and win over stakeholders to create advantageous conditions for teams’ survival and development (Ceri-Booms et al., 2017; Marrone, 2010). 4.2.4.4 Vertical Leadership and Shared Leadership Besides the distinction between person-focused team leadership behaviors and task-­ focused team leadership behaviors from the functional content perspective, we could also differentiate team leadership from the social hierarchy perspective. Vertical leadership means the formally appointed leaders with hierarchical positions displaying top-down influences on team members (Ensley et  al., 2006). Vertical leadership generally depends on a single appointed leader, internally or

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externally, to share information, make decisions, and give instructions (Ensley et al., 2006). For example, one organization recruits a marketing department head to display vertical leadership behaviors to help the whole marketing department reach the sales goal for this year. In contrast, shared leadership is a team-level phenomenon in which leadership functions and responsibilities are distributed and shouldered by all the team members, displaying collective horizontal influences on team members (Wu et al., 2020). For example, Mike Krzyzewski, the former head coach of the Olympic Gold Medal team of the United States, has emphasized the harmony and associated benefits between star basketball players to provide leadership in turns for the ultimate success of the Olympic Dream Team including Kobe Bryant, LeBron James, Larry Bird, Michael Jordan and Magic Johnson (Sitkin & Hackman, 2011). Shared leadership generally comes from each team member sharing their knowledge, skills, and qualifications to solve team problems by turns (Wu et al., 2020). For example, an entrepreneurial team facing an ever-changing and complex business environment requires each team member to make dominant decisions in their respective professional areas (Ensley et al., 2006). Nowadays, scholars advocate mechanically integrating vertical and shared leadership to boost potential team effectiveness (Pearce, 2004). 4.2.4.5 Antecedents and Outcomes of Shared Leadership In addition, research has shown that team vertical leadership, internal team environment, and team characteristics could lead to shared leadership (Wu et  al., 2020; Zhu et  al., 2018). Specifically, the vertical leadership behaviors displayed by the formally appointed team leaders, including empowering leadership behaviors, transformational leadership behaviors, and coaching leadership behaviors, could facilitate the occurrence of shared leadership (Zhu et al., 2018). Moreover, team environment components, including shared purpose among team members, social support, and the voice of team members, could enhance the emergence of shared leadership (Wu et al., 2020; Zhu et al., 2018). Furthermore, team characteristics, including team heterogeneity, team maturity, and team collectivism, could result in shared leadership in teams (Wu et  al., 2020; Zhu et al., 2018). Furthermore, scholars have demonstrated that shared leadership could bring in more subjective and objective team performance, creativity, innovation, task satisfaction, and workplace satisfaction (Wu et al., 2020; Zhu et al., 2018). Specifically, when task interdependence or intrateam trust is high, shared leadership could positively influence team outcomes (Wu et  al., 2020; Zhu et  al., 2018). In summary, shared leadership benefits the cognitive, affective, motivational, and behavioral team processes and, finally, the desirable team outcomes (Zhu et al., 2018).

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4.3 Current Issues and Challenges 4.3.1 Virtual Teams in the Covid-19 Pandemic Context 4.3.1.1 Definition and Antecedents of Virtual Teams As with the advancement of information technology and the challenge of environmental shocks, virtual teams have become prevalent worldwide to coordinate distributed human capital and boost collaborative productivity. Virtual teams depend on digital communication channels to unite geographically dispersed team members to accomplish team goals (Dulebohn & Hoch, 2017). These recent years, especially during the Covid-19 pandemic crisis, have witnessed the sharp growth of virtual teams in all walks of organizations. In summary, many antecedents account for the adoption and prevalence of virtual teams. First, the globalization trend makes it necessary to collaborate between different time zones across various countries or areas, creating opportunities for virtual teams to form (Dulebohn & Hoch, 2017). Second, the distributed expertise and qualifications in different locations with geographical barriers make it hard to work face-to-face, creating functional space for virtual teams (Dulebohn & Hoch, 2017). Third, the fast working pace, including the rapid changes in product development and the urgent requirements of service delivery, calls for timely responsiveness among different employees, which highlights the need for simultaneous connections in virtual teams (Dulebohn & Hoch, 2017). Last but not least, the continuous progress of information technologies has enriched objective possibilities to build up communication channels for virtual teams’formation (Dulebohn & Hoch, 2017). 4.3.1.2 Advantages and Limitations of Virtual Teams Virtual teams have several advantages that could enhance collective work effectiveness. First, virtual teams could integrate knowledge, expertise, skills, and experiences to form a diverse yet efficient workforce by assembling talents from different locations. This could enrich creativity and innovation by collecting excellent ideas from geographically distributed employees (Dulebohn & Hoch, 2017). Second, virtual teams could function continuously 24/7 by assigning differentiated yet interdependent work tasks to team members in different time zones. This could create flexible and coordinated work shifts to satisfy the various temporal needs of certain products and services (Dulebohn & Hoch, 2017). Third, virtual teams could save management costs by minimizing business travel, digitizing work documents, and hosting easy networking activities. This could generate new working styles with less objective material requirements for collaboration between distributed team members (Dulebohn & Hoch, 2017). Inevitably, virtual teams also possess some limitations posing challenges to the viability and effectiveness of teams. First, virtual team members might have low

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work engagement due to the easy distractions on the internet, unified work environments between team members, and lack of vivid interactions between team members, which could threaten the task efficiency of virtual teams (De Guinea et al., 2012; Dulebohn & Hoch, 2017). Second, virtual teams tend to have more conflicts and low mutual trust due to the lack of actual social interactions in person, the isolation and social distance between team members, and the low media richness and associated misunderstandings in the communication contents, which could significantly hinder the collaboration and coordination between virtual team members (De Guinea et  al., 2012; Dulebohn & Hoch, 2017). Third, virtual teams are hard to monitor and manage due to the inconsistent work time zones and workplaces of team members, the lack of simultaneous verbal and nonverbal communication in person, and the newly generated work demands for team leaders and members, which could threaten the life circle and productivity of virtual teams (De Guinea et al., 2012; Dulebohn & Hoch, 2017). 4.3.1.3 Necessary Qualifications for Effective Virtual Teams Scholars have also indicated the necessary qualifications to work effectively in virtual teams, including knowledge, skills, abilities, and other characteristics of team members. They are listed below (Schulze & Krumm, 2017). • Media-related qualification denotes the grasp of knowledge about the function, operation, potential, and constraints of digital communication channels, platforms, and mobile applications. • Communication-related qualification denotes the effective skills for sending and receiving information in a kind, responsive, and appropriate manner. • Trust-related qualification denotes trustworthiness, the tendency to trust, and the skills to build trust among virtual team members. • Intercultural qualification denotes the knowledge and skills about how to get along and work with different virtual team members from different cultural backgrounds. • Self-management qualification denotes the basic and advanced skills to manage time, emotions, and work progress for oneself. • Conflict management qualification denotes the strategies, skills, and means to constructively recognize, confront, and solve all kinds of conflicts. 4.3.1.4 Boosting Virtual Team Effectiveness in the Covid-19 Pandemic Context In particular, the outbreak of the Covid-19 pandemic crisis has kept employees in quarantine with health concerns, which makes more employees form virtual teams remotely. As a result, scholars believe virtual teams could adapt more effectively as time passes, represented by more team coordination and fewer team conflicts

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(Klonek et  al., 2022). Specifically, some scholars have proposed vital points to boost the virtual team effectiveness in the Covid-19 pandemic context. These effective strategies include the following: • Monitoring the intrateam trust between virtual team members denotes that the virtual teams should keep track of the ups and downs of mutual trust among the virtual team members and between specific employee dyads. For example, virtual teams could take measures such as establishing a time frame for responsiveness, sharing detailed project progress, and adopting flexible check-ins. • Enriching the added values in the virtual work process denotes that the virtual teams should articulate a sense of gain along with the task accomplishments. For example, virtual teams could create opportunities for virtual team members to know each other more with facilitated online networking activities, e-­introductions, and communication e-training sections. • Establishing an inclusion climate denotes that the virtual teams treat different virtual team members with consistently open, safe, and respectful actions, such as inviting all the team members in collective decision-making, ensuring equal speak-up opportunities, and clarifying all virtual team members’ strengths and limitations. • Evaluating teamwork constantly denotes that virtual teams should keep a smooth communication flow in task coordination and collaboration by exchanging feedback regularly, hosting debriefing sessions, and focusing on effective results instead of spent hours. 4.3.1.5 Enhance Leadership Effectiveness of Virtual Teams in the Covid-­19 Pandemic Context Moreover, scholars have advocated effective actions to enhance the leadership effectiveness of virtual teams during the Covid-19 pandemic crisis. These actions are explicated below (Newman & Ford, 2021). • Helping virtual team members recognize and accept the new reality denotes that virtual team leaders should explain the characteristics, demands, and constraints of the Covid-19 pandemic context for virtual teams. Specifically, virtual team leaders should be sensitive to the fear, anxiety, and depression of virtual team members facing the Covid-19 pandemic crisis. In addition, virtual team leaders should establish new work routines, schedule regular private and public meetings, and clarify communication policies. • Sustaining a trusting corporate culture and displaying leaders’ trustworthiness denote that virtual team leaders should enforce the core values in the corporate cultures with symbolic rituals and activities for employees working from home. Specifically, virtual team leaders should also enhance the technical support for the virtual coordination processes and include all the virtual team members in the general communication. Virtual team leaders could also work with the human resource department to adjust the performance evaluation standards, ­compensation,

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rewards, training, and development opportunities in the Covid-19 pandemic context to enhance virtual team members’ commitment and engagement. • Improving communication practices to maintain effective communication in virtual teams denotes that virtual team leaders should adopt various communication tactics to deliver timely, transparent, and responsible communication to their virtual team members. Virtual team leaders should also act in predictable patterns and keep constrained interactions with virtual team members, which could help reduce the feelings of uncertainty in virtual team members. Virtual team leaders should explore and confirm the appropriate communication mode in virtual teams according to the characteristics of the Covid-19 pandemic context. • Articulating shared leadership in virtual teams denotes that vertical virtual team leaders should assign differentiated leadership roles to the virtual team members according to their respective leadership potentials. In this process, virtual team leaders should also help virtual team members recognize each other’s strengths, contributions, and advantages in the team task accomplishment processes. Virtual team leaders should closely monitor the collaboration process of the virtual team members and carefully remove the barriers to constructive conflict resolutions. • Auditing the virtual team progress and maintaining alignment between teamwork and organizational values denote that virtual team leaders arrange regular team meetings to track the individual and collective work progress in virtual teams to implement the organizational strategies and designated missions. Virtual team leaders should also help virtual team members realize their contributions and impacts on the organizational goals. Moreover, virtual team leaders should also adjust their behaviors flexibly to advance the work progress of virtual teams.

4.3.2 Composition and Diversity in Teams 4.3.2.1 Definition of Team Diversity Team diversity refers to the differences among team members’ specific personal attributes at the aggregate team level (Joshi & Roh, 2009). Although personal attributes might manifest in different categories, scholars tend to distinguish different personal attributes by the standard of visibility and observability, which results in surface-level and deep-level diversity (Jansen & Searle, 2021). 4.3.2.2 Surface-Level Diversity Specifically, surface-level diversity denotes the difference of obviously observable personal attributes in teams, generally including age diversity, gender diversity, and ethnicity diversity (Jansen & Searle, 2021). In the exploration and discussion about

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team diversity, surface-level diversity also shares common ground and takes the names as demographic, non-task-related, social-category, and relational diversity (Jansen & Searle, 2021). Specifically, relational diversity indicates the personal attribute difference that dominates the social categorization process, which could influence intergroup bias and negative social attitudes (Joshi & Roh, 2009). In particular, various surface-level diversities tend to have differentiated influences on team outcomes (Jansen & Searle, 2021). • Age diversity denotes the biological age difference among team members. When teams have low age discrimination, a positive climate, and complex tasks, age diversity tends to exert positive influences on team performance (Jansen & Searle, 2021). However, some scholars suggest that age diversity hinders team performance in general (Bell et al., 2011). • Gender diversity denotes the different gender compositions in teams. When teams have complex tasks, gender diversity tends to influence team performance positively (Jansen & Searle, 2021). However, gender diversity might also harm team performance in general (Bell et al., 2011). • Ethnicity diversity denotes the ethnic difference among team members. Some scholars have claimed the null influences of ethnic diversity on team performance and effectiveness (Jansen & Searle, 2021). Other scholars proposed that less ethnicity diversity is related to high self-rated team productivity (Jansen & Searle, 2021). However, some scholars suggest that ethnicity diversity hinders team performance in general (Bell et al., 2011). The relationship between ethnicity diversity and team performance is still under hot debate (Jansen & Searle, 2021). 4.3.2.3 Deep-Level Diversity Deep-level diversity denotes the difference of invisible psychological personal attributes in teams, generally including values, personalities, attitudes, and cognitive features (Jansen & Searle, 2021). In the research and debate about team diversity, deep-level diversity also reflects the core contents and shares the names with psychological, cognitive, task-related, information, and functional diversity (Jansen & Searle, 2021). Specifically, task-related diversity indicates the personal attribute difference that determines task information processing, which could influence information exchange and mutual learning (Joshi & Roh, 2009). Scholars have demonstrated the different impacts of specific deep-level diversity on team outcomes (Jansen & Searle, 2021). • Personality diversity denotes the different personality compositions in teams. Specifically, the big-five personalities are the most prevalent personality framework to understand personality diversity in teams. The high average level and the low diversity level of openness to experience tend to enhance team performance and creativity (Jansen & Searle, 2021). On the other hand, the high level of conscientiousness diversity tends to result in more interpersonal deviance and lower

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team performance (Jansen & Searle, 2021). Moreover, the high level of agreeableness diversity tends to boost organizational deviance and harm social cohesion and team performance (Jansen & Searle, 2021). In addition, the influences of extraversion diversity and neuroticism diversity on team outcomes might be positive, negative, or null, depending on the substantial proportion and specific contexts (Jansen & Searle, 2021). Values diversity denotes the difference in internalized beliefs among team members. Research has consistently shown that high value diversity is detrimental to team outcomes, which results in low team satisfaction, commitment, and team performance, as well as more conflicts and turnover intention (Jansen & Searle, 2021). Cognitive style diversity denotes the difference of means, ways, and tendencies in processing information among team members. Generally, cognitive style diversity enhances positive processes and outcomes in teams (Jansen & Searle, 2021). Education diversity denotes the difference in levels or categories of education among team members. When team members endorse diverse cognitive perspectives and are led by transformational leaders, education diversity could articulate information elaboration, team identification, team creativity, and team performance (Jansen & Searle, 2021). In general, educational background diversity benefits team efficiency, creativity, innovation, and performance (Bell et al., 2011). Cultural diversity denotes the difference in held beliefs about the “shoulds” and the “oughts” in lives among team members from different cultures (Stahl et al., 2010). Scholars have summarized that a high level of cultural diversity causes less effective communication, satisfaction, and social integration, as well as more conflicts and creativity (Stahl et al., 2010). Moreover, task complexity and team size might enlarge the effects of cultural diversity on team outcomes (Stahl et al., 2010).

4.3.2.4 Team Diversity and Team Effectiveness To summarize, this chapter witnesses two competitive perspectives on the utility and functionality of team diversity in teams (Horwitz & Horwitz, 2007; Jansen & Searle, 2021; Stahl et al., 2010). One perspective supports the positive effects of team diversity on team outcomes based on the information processing and cognitive diversity literature (Horwitz & Horwitz, 2007; Jansen & Searle, 2021; Stahl et al., 2010). Specifically, team diversity could bring in different viewpoints, multiple perspectives, and diverse ideas, providing much information in the decision-making and problem-solving dynamic. Such information resource and cognitive integration would result in positive team outcomes, including increased team learning, innovation, and performance (Horwitz & Horwitz, 2007; Jansen & Searle, 2021; Stahl et al., 2010). The other perspective argues the negative influences of team diversity on team outcomes according to the literature on similarity-attraction, social categorization, and social identity (Horwitz & Horwitz, 2007; Jansen & Searle, 2021;

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Stahl et al., 2010). Specifically, team diversity arouses interpersonal conflicts, social misunderstandings, and stereotype threats, which generates hindrance and difficulty in mutual trust, social collaboration, and team cohesion. Such social distance and interpersonal frictions would lead to adverse team outcomes, including decreased team viability, team innovation, and team performance, as well as increased team deviance (Horwitz & Horwitz, 2007; Jansen & Searle, 2021; Stahl et al., 2010). 4.3.2.5 Team Inclusion Recently, scholars have proposed the inclusion perspective to harvest the multiple viewpoints, integrative cognition, and social unity of different team members to enhance the team effectiveness in team diversity management (Shore et al., 2011). For example, some scholars have proposed collective intelligence to account for team performance and effectiveness. An interesting finding about collective intelligence is that the average or the maximum of team members’ intelligence does not necessarily guarantee collective intelligence. However, team members’ average social sensitivity, as well as including more female team members, could enhance collective intelligence in teams (Woolley et al., 2010). Specifically, inclusion denotes team members’ perceptions of belongingness and uniqueness, psychological need satisfaction, and respect obtained in work teams (Shore et  al., 2011). Research has demonstrated that team inclusion could boost close social relations, job satisfaction, performance, creativity, organizational commitment, and well-being (Shore et al., 2011). Moreover, organizational fair systems, inclusive leadership, and inclusive human resource management practices could enhance team members’ perceptions of team inclusion, which ultimately benefits team effectiveness (Shore et al., 2011). For example, scholars have investigated 78 symphony orchestras from the United States, the United Kingdom, and the former East and West Germany. They found that women as the minority identity group entering the majority group would harm the team outcomes first and enhance the team outcomes afterward until the women population occupies more than 50% (Allmendinger & Hackman, 1995).

4.3.3 Justice and Ethics 4.3.3.1 Justice Climate in Teams While the whole society has developed a widely accepted moral system, the teams in organizations also have to be concerned about ethical rules to regulate team members’ attitudes and behaviors. One of the most salient factors in team ethics is called team justice climate, which means the shared fairness perception among the whole team (Li & Cropanzano, 2009). Moreover, intrateam justice climate

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refers to the fairness level in social interaction between team members (Li & Cropanzano, 2009). Recall the perceived justice topic from Chap. 2. In teams, we focus on three kinds of justice, namely distributive, procedural, and interactional justice, separately depicting the outcomes, processes, and interactions in teams (Li & Cropanzano, 2009). 4.3.3.2 Distributive Justice in Teams In particular, distributive justice denotes whether the allocation of outcomes, such as salaries and rewards, adheres to specific appropriate standards (Li & Cropanzano, 2009). The first distributive justice standard is the equity principle, which means the acceptable ratio between one’s input and one’ gain (Li & Cropanzano, 2009). The second distributive justice standard is the equality principle, which means everyone gets exactly the same share of resources despite the potential difference in contributions (Li & Cropanzano, 2009). The third distributive justice standard is the need principle, which means the resources are allocated according to customized personal needs (Li & Cropanzano, 2009). No matter which distributive justice principle applies in a specific team context, the consistent implementation of such principles would result in team members’ distributive justice perception (Li & Cropanzano, 2009). Scholars have demonstrated that a distributive climate could improve team performance, productivity, and customer satisfaction (Whitman et al., 2012). 4.3.3.3 Procedural Justice in Teams Procedural justice denotes the fairness level in resource allocation, which focuses on the design and implementation stages of resource flow between team members (Li & Cropanzano, 2009). Specifically, scholars have summarized six factors that could generate procedural justice. First, consistency means that the standards in the procedure are applied across different situations with different people. Second, freedom from bias implies that the implementation and enactment of justice are restricted from any subjective bias and prejudice. Third, accuracy means that the actions, information, and decision-making in justice are accurate. Fourth, representativeness implies that all the stakeholders in the justice enactment process have the right to voice their opinions and appeals. Fourth, correctability means that the key participants could easily correct the deviance in the justice formation process. Finally, maintaining ethical standards means that the emergence, implementation, and enactment of justice should always stick to the shared ethical standards (Leventhal et al., 1980; Li & Cropanzano, 2009). Finally, empirical research has suggested that procedural justice climate could promote job satisfaction and commitment as well as reduce absenteeism and  team turnover (Whitman et al., 2012).

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4.3.3.4 Interactional Justice in Teams Interactional justice denotes the fairness level embedded in the workplace’s social interactions, including interpersonal justice and informational justice (Colquitt, 2001; Li & Cropanzano, 2009). Specifically, interpersonal justice emphasizes whether individuals are treated with sensitivity by the authority, which includes respectful attitudes and acceptance without prejudice. Interpersonal justice reflects the sensitivity of authoritative figures regarding the justice enactment (Colquitt, 2001; Li & Cropanzano, 2009). Informational justice denotes the informational abundance and truthful explanations of decision-makings in the justice enactment, which provides necessary justification and reasoning in social interactions (Colquitt, 2001; Li & Cropanzano, 2009). Informational justice reflects an authoritative figure’s explanations related to the justice enactment (Colquitt, 2001; Li & Cropanzano, 2009). In particular, when the justice-rated information was delivered in a reasonable, focused, and responsive way, the recipients would perceive a high level of informational justice (Colquitt, 2001; Li & Cropanzano, 2009). A recent meta-­ analytic review has summarized that an interactional justice climate could enhance organizational citizenship behaviors and team cohesion (Whitman et al., 2012). 4.3.3.5 Team Deviance While a justice climate reflects the positive component of team ethics, team deviance represents the typical negative component of team ethics. Team deviance denotes that team members conduct norm-violating behaviors threatening the well-­ being of others inside or/and outside the teams (Spoelma & Chauhan, 2023). Specifically, team deviance includes all kinds of deviant behaviors, such as unethical behavior, bullying, gossip, theft, ostracism, cheating, lying, aggression, incivility, and discrimination (Spoelma & Chauhan, 2023). In particular, team deviance has two features: coordination and target focus. The coordination level embedded in the team deviance explicates whether the concrete deviant behavior is an isolated act accomplished by a single team member or a collective outcome accomplished by many interdependent team members (Spoelma & Chauhan, 2023). For example, a single team member could initiate cheating in the annual work performance report. At the same time, gossip involves two or more team members spreading rumors in a communication chain. Moreover, the target focus of team deviance could be entities (e.g., individuals, teams, and organizations) inside or outside the teams. For example, bullying and aggression as deviant behaviors could happen at the intrateam or interteam domain separately directed at individuals inside or outside teams. 4.3.3.6 Pro-group Unethical Behavior Recently, scholars have proposed pro-group unethical behavior as a paradoxical and ambivalent deviant behavior in teams (Thau et  al., 2015). Pro-group unethical behavior denotes that team members conduct unethical behaviors with the aim of

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benefiting other team members, which challenges the selfishness assumption of unethical behaviors (Thau et al., 2015). Specifically, pro-group unethical behavior manifests at the interteam level, which could be individual or coordinated behaviors targeting the whole outgroup or outgroup members (Spoelma & Chauhan, 2023). For example, some team members might badmouth, discredit, and exclude outgroup members to secure their own teams in advantageous positions. One interesting research reveals that team members facing the social exclusion risk would engage in more pro-group unethical behaviors. Moreover, the focal team member’s need for social inclusion would aggravate this effect (Thau et al., 2015).

4.4 Summary After the learning journey in this chapter, some solutions about how to ensure the best performance of all-star teams might naturally emerge. First, the Dream Team needs to establish an appropriate norm and climate with clear roles, which could create a shared mindset about the work procedure and goal, laying the foundation for the task accomplishments in the competition. Second, the Dream Team needs to enforce their cohesion and cooperation and lessen the potential conflicts and intrateam competition, which could mechanically coordinate the big egos and cope with the emotional hardships along the basketball battle. Third, the Dream Team needs to continuously enhance team learning about tactics and strategies as well as share related knowledge about their competitors among team members, which could guarantee the flexibility, adaptation, and renovation of the whole team’s toolkits and competitive spirit. Last but not the least, the Dream Team needs to coordinate with the new leadership, and the new leader should strategically employ person-focused and task-focused team leadership behaviors to offer solutions to social and task difficulties, which could ensure the right track for the survival and prosperity of the Dream Team with a balance of vertical and shared leadership. Finally, although it is more eye-catching, the Dream Team shares a lot of common points with regular teams in the workplace. What would you do to enhance the effectiveness of work teams if you were a team member or/and a team leader in the upcoming future?

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Woolley, A.  W., Chabris, C.  F., Pentland, A., Hashmi, N., & Malone, T.  W. (2010). Evidence for a collective intelligence factor in the performance of human groups. Science, 330(6004), 686–688. Wu, Q., Cormican, K., & Chen, G. (2020). A meta-analysis of shared leadership: Antecedents, consequences, and moderators. Journal of Leadership and Organizational Studies, 27(1), 49–64. Zaccaro, S. J., Rittman, A. L., & Marks, M. A. (2001). Team leadership. The Leadership Quarterly, 12(4), 451–483. Zhang, Y., & Wan, M. M. (2021). The double-edged sword effect of psychological safety climate: A theoretical framework. Team Performance Management: An International Journal, 27(5/6), 377–390. Zhu, J., Liao, Z., Yam, K. C., & Johnson, R. E. (2018). Shared leadership: A state-of-the-art review and future research agenda. Journal of Organizational Behavior, 39(7), 834–852. Ye Li  is a Research Assistant Professor at the School of Business, Nanjing University. He earned his Ph.D. from the Guanghua School of Management, Peking University. His research interests mainly focus on emerging personality in the workplace, leadership, team process, and creativity. His research has been published in the Journal of Organizational Behavior, Journal of Business Ethics, European Journal of Work and Organizational Psychology, etc.

Chapter 5

Decision Making Ofem E. Ofem and Yuxi Wang

Abbreviations AI Artificial Intelligence CSR Corporate Social Responsibility EI Emotional Intelligence GDSS Group Decision Support System KPMG Klynveld Peat Marwick Goerdeler PHB Platinum Habib Bank PwC PricewaterhouseCoopers The Bank PHB Story Platinum Habib Bank Group, also known as Platinum Habib Bank Group, was a West African and East African provider of financial services. The group had subsidiaries in Nigeria, the Gambia, Liberia, Sierra Leone, and Uganda. Its headquarters were located on Victoria Island in Lagos, Nigeria. As of 2009, Bank PHB Group had more than $3.6 billion in assets and was one of Africa’s largest financial services companies. On August 5, 2011, the Central Bank of Nigeria took away Bank PHB’s operating license because the bank had too much debt and couldn’t or wouldn’t recapitalize. How did a bank with ten subsidiaries and over $3.6 billion in assets fail? The answer lies in the bank’s decision-making process. In 2005, the Central Bank of Nigeria mandated that all banks operating in the Nigerian banking system maintain a minimum capital base of $250  million. As banks rushed to meet the December 31, 2005, deadline, this action led to mergers and acquisitions. Two legacy banks, Platinum Bank Plc and Habib Bank Plc, merged to create Bank PHB. The newly founded bank made extremely costly decisions, such as the decision O. E. Ofem (*) Herberger Business School, St. Cloud State University, Coon Rapids, MN, USA e-mail: [email protected]; [email protected] Y. Wang Beijing DuoMi Development School, Beijing, China © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 N. Hou et al. (eds.), Organizational Behavior, https://doi.org/10.1007/978-3-031-31356-1_5

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to compete with banks that had existed for over a century. Before the bank made Nigeria its primary market, it opened branches all over West Africa. In 2008, just 2 years after consolidation, the bank’s CEO acquired a troubled bank without board approval (Spring Bank). The Central Bank ultimately revoked Bank PHB’s license because the acquisition needed more oversight and due diligence, which led to the bank’s missing the fact that the newly acquired bank carried unsustainable debt. A culture of bad ethical behavior, self-dealing, and insider trading was at the root of all the poor decision making. A court later found the bank CEO and CFO guilty of fraud and stealing and sentenced them to 6 years in jail. I had the opportunity to interview a former compliance executive at Bank PHB. I chose several interview questions to present here to enrich the case. Question: What kind of ethical environment did the bank have? Answer: The ethical environment was toxic. It was an environment of “anything goes,” so even though we had one of the best-crafted ethical codes, we had a poor ethical climate. The common slogan was: “It is better to ask for forgiveness than permission.” Question: With hindsight, how critical is decision making to the success of any organization? Answer: Leadership is driven by decision making, and successful leaders are very good at making decisions that drive the organizations they lead forward. That said, with hindsight, decision making is very critical to the success of any organization, and in the case of a bank, poor decision making brings the bank to its knees. Question: If you had the power to go back, what are some of the things you would change? Answer: Even if I went back in time, I wouldn’t still have the power because I am not one of the owners, but if the question is if I were the MD/CEO, what would I do differently with hindsight? Then it will be a straight answer: I will strengthen the company’s ethical code implementation. Why do you think a bank with so much potential failed to succeed? What were the decision-making processes? How did ethics and politics impact the decision? How were other forces playing a role in the series of decisions? What mistakes and biases were involved in the decisions? What was missing in the decision-making structure of the bank? Were the consequences preventable with better decisions? Considering you are the CEO of the bank, what will you do differently? Source: Ezeamalu (2021).

5.1 Decision-Making Elements Decision Making is the process of selecting a course of action from various alternatives (Simon, 1957). There are different types of decisions. Some decisions are hard-coded in our brains so that they are effortless to make and do not require any

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data aggregation, while some have a set procedure or process for making them. Other decisions are more difficult because they require instant decision making without all the information. This section covers the decision-making types, processes, and behavioral forces.

5.1.1 Types of Decision Making The study of decision making uses different terms for types of decision making. Some scholars of the subject matter refer to decision types as System 1 thinking and System 2 thinking; others refer to them as programmed and nonprogrammed decision making. To properly understand these decision types, we will first attempt to define each term and then make a contrast by using applications and examples. System1 thinking refers to trained decisions that are hard-wired in our system, which we make without effort, typically quick and automatic. These decisions are instinctive, unconscious, and emotional reactions to circumstances and stimuli (Kahneman, 2011). For example, you know how to get to work and what route takes you to work faster. System 2 thinking, on the other hand, refers to decisions we are forced to make by unforeseen or unplanned circumstances. System 2 thinking refers to the decisions that require effort and attention, typically slower. These decisions require consciousness and logic. This doesn’t mean the System 1 thinking processes only simple ideas. Surprisingly, System 1 thinking can generate complex patterns of ideas (Kahneman, 2011). Programmed decisions share similarities with System 1 thinking in that they follow a set pattern and can be made repeatedly. They are often guided by a set of rules that have already been made. These decisions may be simple or complex. Still, the criteria that go into making the decision are all known or can be estimated with a reasonable degree of accuracy. Unlike System 1 thinking, which follows a learned pattern, programmed decisions are primarily used in the workplace where there are standard operating procedures for specific jobs, so the outcome is predetermined by following the process. The management of most organizations’ daily operations abounds in highly programmed decisions (Soelberg, 1966). The difference between Programmed decisions and System 1 thinking is that programmed decisions mostly follow the rules or guidelines that are written down, whereas System 1 thinking follows a pattern of learned behaviors that have become a default when faced with certain circumstances. However, in some cases, for instance, when an employee has been at a job for so long, they no longer need to refer to manuals or processes to do a job they operate with system 1 because the processes and procedures required for their job are now second nature. Nonprogrammed decisions share more similarities with System 2 thinking because they involve spur-of-moment decision making. Nonprogrammed decisions are unstructured, rely on vague criteria, and may involve complicated or missing information, so the person making the decision must use good judgment and creative thinking to come up with a good answer.

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Table 5.1  Definition of different decision-making types System 1 Thinking

System 2 Thinking

Programmed decision making Nonprogrammed decision making

Decisions that have been drilled into our brains via repeated practice are said to be made using System 1 thinking. These judgments represent knee-jerk, subconscious, and emotional responses to events and stimuli System 2 thinking, on the other hand, is what we do when we’re confronted with a choice that we can’t put off any longer. System 2 directs one’s focus toward mentally taxing tasks, such as doing difficult calculations Programmed decisions follow a pattern and are repetitive. A set of already-established rules often guides them Unprogrammed decisions are unstructured and based on vague criteria. Unexpected decisions can involve complicated or missing information, so the person making the decision must use common sense and creativity to come up with a good answer

The story of the plane that landed on the Hudson River provides a clear interplay of System 1 and System 2 thinking and the overlap between programmed and nonprogrammed decision making. Please check the gray box for the full case of “The Miracle on the Hudson” (Table 5.1).

Decision-Making Types: The Miracle on the Hudson River Cactus 1549, a flight operated by US Airways, was supposed to depart from New  York’s LaGuardia Airport (LGA) on January 15, 2009, and land in Charlotte, North Carolina’s Charlotte Douglas International Airport (CLT), from whence it would continue on to Seattle-Tacoma International Airport. It was an Airbus A320-214 with a CFM International CFM56-5B4/P engine. Capt. Chesley “Sully” Sullenberger, 57, was in charge of flying the plane. After retiring in 1980 from the US Air Force, he became a commercial airline pilot and quickly rose through the ranks. Aside from being an air safety authority and a glider pilot, he had a total of 19,663 h of flying experience, 4763 of which were in an A320. The 49-year-old First Officer Jeffrey Skiles has logged 20,727 total flight hours, with just 37 of those hours spent behind the controls of an Airbus A320, 8–9. The flight had three flight attendants and 150 passengers onboard. The plane crashed into a flock of Canada geese at 03:27:11, around 7.2 km north-northwest of LaGuardia International Airport, while it was rising. All the pilots could see were giant birds, and the passengers and crew saw engine fires and heard tremendous explosions. Then there was stillness and the smell of jet fuel. When it was discovered that both engines had stopped working, Sullenberger assumed command, while Skiles went through the steps to restart the engines. At 3:28:10, the aircraft started its glide descent, increasing its speed to 210 knots (240 mph; 390  km/h) as it descended to an altitude of 1650  feet (500  m). At 3:27:33, Sullenberger reported over the radio to New  York Terminal Radar Approach Control

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(TRACON) that both engines had stopped working. Our next stop is back at LaGuardia Airport. To get Sullenberger back to Runway 31, Patrick Harten told LaGuardia Tower to stop all takeoffs. It’s impossible,“ Sullenberger said. As an alternate landing spot in New Jersey, Sullenberger suggested Teterboro Airport. The original reaction was “yes,“ followed by “we can’t do that“ and “we’ll be in the Hudson”; therefore, permission was given for Teterboro Runway 1. About 270  m (less than 900  feet) over the George Washington Bridge, the aircraft was flying. When it came time to evacuate, flight attendants relayed Sullenberger’s order over the cabin address system to the passengers. The narrative illustrates the difference between System 1 and System 2 processing. A pilot’s normal workday consists of flying an aircraft. The only rules a pilot needs to obey are those for preflight, takeoff, and landing; after the engines are turned off, however, the pilot’s expertise takes over. Aiding in the conclusion that System 1 is not a viable option, He and his passengers will be rescued from danger by this work. Using his knowledge of how to land an airplane on the water despite air traffic control and other obstacles, he is credited with saving the lives of everyone on board. Source: Langewiesche (2009), Wikipedia Contributors (2021). Reflective Questions: 1. How much of Captain Sullenberger’s experience played a part in avoiding a fatal crash? 2. Did the pilot use System 2 thinking or nonprogrammed decision making? 3. When faced with similar scenarios, what default thinking do you normally apply? 4. Can Systems 1 and 2 be learned? 5. Should companies train employees to develop systems 1 and 2 thinking?

5.1.2 Processes A decision-making process is a series of activities that begin with the recognition of a problem and end with an action. It is possible to categorize these activities using a structure, or it is possible that patterns in the activities will become apparent after studying and analyzing the examples. The problem with imposing a framework to organize data is that it gives the illusion of order to a chaotic process. When using this classification system, decision-making processes may not have a delineated order of steps. It was determined that the advantages of generalizability and structure, both necessary for a large database, outweighed the disadvantages. Both features are required for a large database (Snowden & Boone, 2007).

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5.1.2.1 Rational Decision-Making Model The assumptions about the “data“and the “flavor” of different rational choice models are determined by the rules or conditions that must be met for rational adaptation to occur (Simon, 1955). To make good decisions, you need to choose the options that are most likely to turn out well. While your gut can lead you somewhere, a more rational approach to choices is often best. Knowing a rational decision model and how to use it in the workplace is helpful. All constraints arising from the rational decision-making model include the set of alternatives available for selection, the relationships that determine the payoffs depending on the chosen alternative, and the preference orders among the payoffs. The choice of these constraints by the rational decision-making model and the rejection of others include implicit assumptions about which variables the rational organism can modify and thus optimize for rational adaptation and which variables it must accept as fixed. It also takes into account assumptions about the characteristics of the fixed variables. The organization must be able to attribute specific gains to each possible outcome when making a decision. This also includes the ability to specify the particular nature of the results, eliminating the possibility of unintended consequences. Payouts should be structured so that it is always possible to indicate whether one result is consistently better, comparable, or worse than another. When using certainty or probability rules, the outcomes of the alternatives must be known with certainty, or a precise probability must be assigned. Most comprehensive rational choice models weigh all options before making a decision. In real human decision making, alternatives are often considered in order. The mechanism that determines the order of the procedures has not yet been discovered. When the alternatives are examined in order, we can consider the first satisfactory alternative analyzed as the chosen one. See Table 5.2 for a classic example of a rational decision-making model. 5.1.2.2 Bounded Rationality Model Bounded rationality is a concept in economics and decision theory that assumes that individuals, when making decisions, have limited cognitive abilities and are subject to inherent biases, leading them to make decisions that are not fully rational. In other words, individuals have rational behavior that is bounded by the information they have, the mental shortcuts they use, and their emotions. The bounded rationality model suggests that people make their decisions on the constraints they face. Empirical studies demonstrated the way people think and make decisions in reallife situations does not have to follow the strict rules and principles of rational decision making. In other words, the success of certain cognitive mechanisms in the real world suggests that people can make good decisions even if they do not always follow the logical and systematic processes associated with rational inference (Gigerenzer & Goldstein, 1996). Also, we don’t have to choose the best alternative available in making ethical or other value-based decisions.

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5  Decision Making Table 5.2  Rational decision-making model example Process Define the problem: First, you must identify the issue and grasp why making a choice is essential. A detailed description of the problem could help better understand the desired outcome. Ensure that the problem definition is clear and concise without any ambiguity Identify decision criteria and collect pertinent information on the objective or issue. Getting to this point usually requires serious thought and research, as well as an excellent understanding of articulating and establishing decision criteria. The criteria you use to decide should consist of factors that might affect its result and are often based on your most deeply held beliefs

Practical scenario After the yearly appraisal, you are promoted to lead a division comprising sales, marketing, and operations with a mandate to increase sales, acquire market share, and reduce operating costs by 25%

The next step is to analyze the data you’ve gathered to determine what changes need to be made to boost earnings, acquire market share, and reduce operating costs by 25%. There are several options to reduce operating costs: You could reduce the headcount with layoffs by closing the manufacturing operation and outsourcing the manufacturing; you could also increase manufacturing capacity and acquire more distributors to expand your market and increase market share; or you could increase account payable by offering more liberal credit terms. Consider how your choice will affect your clients, your staff, and the quality of the final product. This is your decision criterion Assign weights to the decision criteria. The To proceed, you must evaluate the potential next step is to rank your criteria for selecting a effects of your strategy on your organization’s solution according to its importance. Analytical operations, processes, growth goals, and and critical thinking skills are often required at financial results. Other considerations, such as this level of difficulty. Analytical thinking the effect on consumers and product quality, requires dissecting a problem to find a workable may be just as crucial solution, whereas critical thinking is used to reach a verdict Create a list of options in order of Create a list of solutions and rate them in importance. The next step is to sketch answers order of their efficacy. You may, for instance, to the issue. The best alternatives can be create a list like this: supported by facts showing how they improve  (a) Recruit additional distributors upon the status quo and assist the creator in  (b) Offer more liberal credit terms getting closer to the goal or over the obstacle.  (c) Increase production capacity Finding workable solutions at this phase often  (d) Pitch the executive board for funds to requires using imagination and research skills boost output  (e) Pitch the executive board for funds to boost output Choose the cause of action and finalize the Based on the decision criteria already set, decision. Give yourself plenty of time to recruiting more distributors will be best. consider your paths and how they would affect Recruiting more distributors and offering your success. It’s essential to weigh your better credit terms will increase sales, options carefully to make the right decision. increasing revenue. You should put together a Having settled on a course of action, you must document for your executive board explaining be willing to see it through to completion how the rational decision-making model was implemented

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Suppose a manager needs to make a decision about investing in a new project. They have limited time and resources to gather information, analyze data, and make a choice. Rather than evaluating all available options and making an optimal decision, the manager may rely on gut instincts, focus on only a few key factors, or rely on the advice of a trusted colleague, all of which can lead to suboptimal decision making. In this case, the manager’s bounded rationality has impacted their decisionmaking process and potentially led to a suboptimal outcome for the organization. Systemic Effects on the Bounded Rationality Model Every institution has a complex hierarchy of decision-makers. Institutional choices are often made with economics in mind. However, this overlooks the fact that people are sometimes rational thinkers. Individuals make these evaluations, but businesses want them to reflect their own economic values and goals. Business decision-makers must sometimes make snap judgments that have far-reaching consequences because people are influenced by reasons other than logic. When time is of the essence, the best option for the company’s goals may be compromised for the sake of expediency. Workplace rationality is more difficult, since an employee’s best decision may not be the best option for the business. In this instance, CEOs and other decision-makers are required to put the demands of the business ahead of their own, which places new constraints on their reasoning. Instead of conceptualizing rationality based on an “ideal” subject that is outside of these complications, limited rationality might be a fatal weakness when considering decision making in the context of a network. Roehrich aimed to examine the impact of constrained rationality on sustainable supply chain practices by corporations (Roehrich et al., 2014). Sustainable supply chain practices are more expensive to implement than less eco-friendly alternatives. According to the findings, the managers’ main worry was striking a good balance between the costs, reputation, opportunities, and resources at their disposal. These concessions demonstrate that businesses do not always make completely reasonable decisions. Their ability to reason is constrained by external factors, though. Decision-makers typically choose a more costly, sustainable, and ethical supply chain despite the risks it poses to their budgets and brands rather than the most cost-effective option. Since humans do not live in a black-and-white world and must instead navigate a complicated one, this scenario demonstrates that limited rationality may be more useful than perfect rationality. 5.1.2.3 Intuitive Decision-Making Model Intuitive decision making is a type of decision-making process that relies on unconscious thinking and gut instincts. Rather than systematic analysis and deliberate reasoning, in an intuitive decision-making model, individuals rely on their previous experiences, emotions, and personal values to make quick and effective decisions. The intuitive decision-making model can be extremely helpful in certain circumstances; sometimes, it is even the only available option.

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According to a study by Leibowitz et  al. (2019), less experienced employees prefer to use data to make decisions. In contrast, Managers prefer intuitive inference, which refers to judgments based on decision-making processes that were once analytical but have become intuitive in practice. You could say that managers “ignore the data,” but the smart ones lack the perspective to build the right models and evaluate the results. Big-picture managers’ reasoning and holistic intuition can help interpret statistics and patterns. Interview studies also supported the importance of experienced-based intuition decision makings (Burke & Miller, 1999). Studies on executives have shown that fast decision-makers actually utilize more information and achieve superior performance than slow decision-makers (Eisenhardt, 1989). Another surprising result is that North American executives trust their intuition more than European executives, even after controlling the survey data for years of experience, role, gender, and industry, demonstrating the cultural differences in decision makings (Leibowitz et al., 2019). According to a KPMG report (The Star, 2018), while being optimistic about breakthroughs in artificial intelligence (AI) and data analytics, 65% of the over 2200 CEOs polled relied on their intuition rather than AI-generated data. In another poll conducted by PwC Global Data and Analytics, 59 percent of decision-makers said that the analysis they need is mostly dependent on human judgment rather than computer algorithms (PwC Management Services LP, 2018).

5.1.3 Behavioral Forces Many behavior forces influence organizational decision making. This section discusses office politics, ethics, environment, risk, and emotional intelligence forces. Office Politics The influence of office politics on decision making is often overlooked, but it has likely already influenced your career long before you oversaw your first employee project as a manager, read your first management book, or even started looking for a job. Office politics can influence who has the power and influence to make decisions and the outcomes of those decisions. Specifically, office politics influence power dynamics by distributing power differently. Some individuals have more influence over decision making than others, which skews in favor of certain individuals or groups. Besides impacting power distribution, office politics can also impact information distribution, as individuals may selectively share information or withhold information to further their own interests. Office politics can also create conflicts of interest, where individuals with personal or political motivations make decisions that are not in the best interest of the organization. The imbalanced power, information, and conflict of interest will eventually create perceived injustice, distrust, and insecurity, which can lead to decision paralysis, where individuals are reluctant to make decisions or are unable to make effective decisions.

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Ethics Ethics refers to a set of moral principles and values that guide behavior and decision making. Ethics can have a significant impact on decision making in organizations, as it helps individuals determine what is right and wrong and informs the values and principles that guide organizational behavior. An organizational code of ethics is a great guide for decision makings in the organization to promote a culture in which all actions benefit the person, the organization, and the community the company serves or surrounds. Environment The kind of environment created within an organization is critical to the mood and behaviors of that organization, which will impact decision making, team cohesiveness, and overall performance. Most of the time, the environment is established by the kind of actions that the leadership enables. A famous example is sports teams; when the unit is underperforming owing to the leadership of a coach, the coach is usually sacked, and a new coach is hired. Often, a new coach will infuse fresh energy and create an environment that encourages hard work, and the team that has been losing every game for the last several months will go on a winning streak due to the change in environment. Or cases where a company is doing poorly and a new CEO suddenly changes the company’s fortunes, not because the company changed anything except changing the leadership direction, which in most cases produces a change of environment. Creating an environment is a typical form of nudging; the issue is whether leaders constantly examine how their endeavor to drive change would influence the environment, whether favorably or adversely. Risks Organizations face various dynamic risks, such as technological change, government policy changes, new product launches, leadership changes, and the emergence of new competitors. A recent study on the decision to get the Covid-19 vaccine investigated the importance of the evaluation of risks (Trueblood et al., 2022). For the same rationale, evaluating the risk will impact the decisions in the organizations. Emotional Intelligence (EI) Emotional intelligence has been studied as a factor in organizational decision making as well. For instance, emotional intelligence can impact how individuals perceive information and situations, such as career advancement (Brown et al., 2003). Emotional intelligence also helps individuals understand their own emotions and motivations, which can improve self-awareness and decision-making accuracy. In addition, emotional intelligence can also help individuals build and maintain positive relationships and understand and respond to the emotions of others. It increases corporation decisions (Fernández-Berrocal et al., 2014). Cognitive Dissonance We tend to match our attitudes with our behaviors. It makes us uncomfortable when we behave in different ways as our attitude. Cognitive dissonance refers to this

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mental discomfort when we experience conflicting ideas, beliefs, attitudes, and behaviors. Festinger (1957) proposed the term in his book A Theory of Cognitive Dissonance. Consider the following circumstance. Nick cares about the environment. He is also the sales representative for Volkswagen and is aware of the emission issues. The conflicting beliefs of the Volkswagen Golf TDI emitting a dangerous level of NOX (Gates et al., 2015) and earning the commission of selling it leads to Nick’s cognitive dissonance. To reduce this discomfort, Nick needs to rationalize the emission problem or change his attitude towards it, believing that it is not going to harm the environment.

5.2 Biases A cognitive bias refers to systematic errors or deviations in judgment that arise from individual or group decision-making processes. These biases are influenced by psychological, social, and emotional factors and can impact the quality of decisions and the ability to perceive information accurately and make sound judgments.

5.2.1 Individual Biases This section covers some common individual biases in the organizational decisionmaking processes. The last section of the chapter, nudge, will discuss how to design the workplace better to mitigate and avoid some biases. Overconfidence Bias Overconfidence bias is the tendency to overestimate the ability. And it could happen for individuals and teams. Executives are largely studied for overconfidence biases (Lovallo & Kahneman, 2003). A large-scale longitudinal study on CFOs demonstrated that overconfident CFOs tend to use more debt and are less likely to pay individuals (Ben-David et al., 2007). Overconfident CEOs are also more likely to use more incentive-heavy compensation structures (Humphery-Jenner et al., 2016). In a specific area, innovation, studies show a positive link between overconfidence and the likelihood of pursuing innovations. Studies by Galasso and Simcoe (2011) found the robust tendency of how overconfident CEOs are more likely to underestimate the failure probabilities and more likely to pursue innovation. The effect is especially salient in more competitive industries (Galasso & Simcoe, 2011). Framing Bias How information is presented sometimes plays a more critical role than the actual data itself. The information with incomplete knowledge can make it more attractive than alternatives or information that is objectively better but resented negatively.

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Framing bias occurs when how the way information is presented affects our judgment. Depending on the presentation of the characteristics, the same data can receive a completely different effect. Consider that you are presenting cloud storage solutions to the board of your company, you have tested the two solutions, and both offer a 20% discount, but during your presentation, you tell the board that solution A offers 20% more space on the cloud and solution B offers 20% discount. Your board will likely choose solution A, which says 20% more space. It is important to be aware of the framing bias so we are not tricked into the inferior options by how the option is framed. Status Quo Bias The status quo bias refers to the fact that we tend to prefer what the options are right now rather than change the status. A manager resumes at a new company and has the job of reviewing policies to make changes. One of the changes the manager wants to make is to create a platform for sharing feedback that enables colleagues to rate each other’s work. The manager faces serious pushback from supervisors who believe that the current yearly appraisal, which is subjective to the supervisor, is the best. This pushback is a product of the supervisors having a status quo bias. They are afraid of what the change will bring. In their opinion, the current appraisal system is not broken, so why the new fix? This results from status quo bias, where we prefer to keep things as they are rather than attempt to alter them. Status quo bias indicates that you’re not attempting to make decisions. This helps us to free up brain resources for other activities, but it also implies that our choices aren’t always founded on reason. As a result, we could make decisions that are not in our best interests. In this situation, continually choosing the default choice might prevent us from taking advantage of chances that would be to our advantage. Sunk Cost Bias The sunk cost bias is the tendency to keep working on a project after putting time, energy, or money into it, even if the current costs are higher than the possible benefits. During the great resignation, it was really difficult for organizations to recruit new employees. A marketing department continued to employ an underperforming employee because they had spent so much effort, time, and energy in recruiting and selecting the employee. Despite evidence that the employee is not likely to improve or meet company standards, the company may continue to invest in their development and performance instead of making the difficult decision to let them go and hire someone more suitable for the role. A clear rule can help in this case. Confirmation Bias Confirmation bias refers to the tendency to seek out and give more weight to information that supports preexisting beliefs and attitudes while discounting or disregarding information that contradicts them. Confirmation bias can arise from various sources, such as cognitive dissonance (the discomfort associated with holding

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conflicting beliefs) and social influence (the pressure to conform to the beliefs and attitudes of others). In organizations, confirmation bias can impact decision making by leading individuals to make decisions based on limited or inaccurate information rather than seeking out and considering a full range of relevant information. For instance, a manager who has a strong belief in a particular management technique consistently looks for evidence that supports its effectiveness while disregarding evidence that suggests it may not be as effective as they believe. This can lead to poor decision making and impede progress in the organization. To minimize the impact of confirmation bias, organizations can promote a culture of open communication and inquiry, encourage critical thinking and the examination of alternative viewpoints, and use decision-making frameworks and tools that reduce the influence of confirmation bias.

5.2.2 Group Decision Making Organizations encourage teams and teamwork, as the adage “two heads are better than one” applies. But aren’t two heads better than one? There are advantages as well as disadvantages to making decisions as a group. If the groups can leverage their members’ diverse viewpoints, ideas, and experiences, they become more and more successful. Research has shown that multiple groups discussing issues lead to more insightful judgments for management teams that are better for financial performance in terms of profitability and sales (Simons et al., 1999). Group decision making also has a variety of drawbacks while being widely used in businesses. Groups sometimes can’t surpass their best member (Miner, 1984; Woolley et al., 2010). The following section introduces some group decision-making biases: social loafing, escalation of commitment, groupthink, and group Polarization. Social Loafing Social loafing refers to the propensity that people tend to exert less effort and are less accountable when they are group members than when they act as individuals. Max Ringelmann, a French agricultural engineer, first studied social loafing in 1913 when he compared individuals’ efforts pulling on a rope individually versus in groups. Ringelmann’s (1913) study showed that individuals exerted less effort when performing in a group rather than working alone. Various reasons could cause social loafing. First, people tend to perceive less responsibility as individuals when they perceive more people are sharing the responsibilities. Studies confirmed the dilution effect in social loafing. Perceived less responsibility is also the cause of a social psychology phenomenon, the bystander effect, which describes the propensity to be less inclined to assist someone in need while others are around. Second, people perceive less social pressure, less attention, and less expectation when working in a team compared to working as an individual.

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Therefore, the larger the group size, the higher the possibility of social loafing. Compared with teams of eight members, teams with four members performed better in collaborated tasks. Individuals in smaller groups signified a smaller dilution effect, perceiving more pressure to be active, and had increased individual contributions and group outcomes (Chidambaram & Tung, 2005). There are a few practices organizations can use to avoid social loafing, for instance, setting up clear roles and responsibilities, using proper metrics for performance appraisals, utilizing collaborative tools to provide resources and clarify contributions, promoting collaborative culture, encouraging communication, and recognizing accomplishments by group members. Recall back to the Two Pizza rule from Amazon, which is a great application to avoid social loafing. Escalation of Commitment Escalation of commitment is a phenomenon in which individuals or teams persist in the course of action despite evidence that it is not working or is failing. It is often used with sunk cost bias interchangeably, but there is some difference. While sunk cost bias mainly focuses on the continuous effect due to previously invested time, effort, and money, escalation of commitment can be driven by sunk cost and other factors like the sense of commitment and the desire to avoid embarrassment. One example of the escalation of commitment in teams is the ill-fated Mars Climate Orbiter mission by NASA in 1999. Despite evidence that the spacecraft was not on the course, the team persisted with the mission, ultimately resulting in the loss of the spacecraft due to miscommunication between two teams using different units of measurement. The team’s commitment to the initial decision and the sunk costs in time, resources, and reputation led to the escalation of commitment and the eventual failure of the mission. It is complicated to mitigate the escalation of commitment bias. This requires, among other things, to counteract our fixation. Some strategies to help the team reducing escalate of commitment include regularly assessing progress, assigning devil’s advocate, building an honest and safe team that allows suggestions for alternatives and reduce the embarrassment of making mistakes, learning from past experience, and setting clear goals and expectations. Groupthink When individuals prioritize loyalty to their group over making the best decisions, groupthink occurs. In a group, it can be difficult for people to think and act independently. Peer pressure leads to groupthink, which Janis (1972, p. 8) describes as “a loss of mental agility, a failure to test reality, and a loss of moral judgment.” Members of the group often need more confidence and a strong belief in the group’s morality and ability. The groupthink hypothesis was first proposed as a psychological phenomenon by Janis (1972). Janis defined “groupthink“as “a way of thinking that gets deeply involved people to work together coherently in a group when the members’ desire for agreement is stronger than their desire to think about other ways to act” (Janis, 1972, p. 8).

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Groupthink is not easy to spot. However, a few symptoms exist. There are also conditions where the chance of this sort of notion is higher. • The illusion of unanimity. This is a prominent symptom of groupthink, characterized by suppressing dissenting opinions. It occurs when members mistakenly believe that there is a consensus among the group, leading to self-censorship and the avoidance of expressing alternative viewpoints. This illusion can be perpetuated through various means, such as the dominance of vocal majority opinions or the failure to seek input from all members actively. In the workplace, an example of the illusion of unanimity could be observed in a team meeting where a proposal is met with silence or nodding agreement, giving the impression of unanimous support. However, unbeknownst to the group leader, several team members have reservations about the proposal but refrain from voicing their concerns due to the perception of unanimous agreement (Janis, 1972, p. 17; Baron, 2005, p. 89). • Moral illusion. The moral illusion in which members participating in the group’s decision-making process loses sight of their moral principles. Instead, belief in the general character of the group overrides a personal sense of right and wrong. Groups that make massive misjudgments tend to draw wrong conclusions about the group’s true intentions. • Rationalization. Rationalization discourages individuals from rethinking their ideals and makes them disregard caution signs. The prominent red flags are excused. That’s when team members are convinced that, despite evidence to the contrary, the decision or alternative is the best. Others disagree because they have yet to research the topic as thoroughly as we have. • Stereotypes. As a group becomes more unified in its views, it begins to perceive outsiders as having different and inferior morals and characteristics. These qualities, perceived as unfavorable, are then used to discredit the opposition. Organization contributors disregard or demonize nonorganization contributors who might oppose or venture into the organization’s ideas. Stereotypes motivate organization participants to disregard critical thoughts or information. • Self-censorship. Self-censorship motivates people who have problems to cowl their fears or problems. Instead of sharing what they understand, people stay silent and anticipate the institution’s need to understand better. The need to conform to group ideas causes individual members to censor their opinions or viewpoints. If everyone agrees, my opposing thoughts must remain wrong. • Peer pressure. If a team member expresses an opposing opinion or questions the rationale for a decision, the other team members work together to pressure or punish that individual for complying. Members who ballot and query the organization are frequently visible as disloyal or treacherous. “Well, if you think we’re wrong, you can always leave the group.” • The illusion of invulnerability. The illusion of invulnerability is another symptom of groupthink. Members of a nondissident group may feel that their group is doing well. The group members believe that their group cannot make big mistakes. The members are very assertive and trust the group’s decision-making ability. Over-reliance on group decision-making powers causes members to cre-

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ate the illusion of invulnerability. Members believe they are invulnerable to all obstacles, which allows them to put aside clear and analytical thinking. • Mind Guards. Mind guards also influence groupthink. A Mind Guard is a member of the group who, in order to uphold the central idea of the group, omits any information that might raise doubts in the group. Mind Guard is responsible for protecting other group members from “controversial” information that could disrupt the overall dynamic of the group. If the mind guard receives negative information from outside, he does not report it to the group. It also puts pressure on dissenting members, eventually forcing them to remain silent. To this end, the mind guard can use various strategies to persuade the dissenter to rethink. One such strategy would be to convince the dissident that the group could disband if all members disagree. The purpose of mental protection is to prevent questions about group decisions from being raised for other group members. There are several leading causes of groupthink, which include group cohesion, isolation, leadership, and decision-making stress. A high level of cohesion reduces the amount of verbal disagreement in a small group due to interpersonal pressures to conform. This strong cohesion is also reflected in the self-censorship and apparent unanimity within the group. In the absence of these disagreements, options for action are never considered. Another cause of groupthink is isolation. Decisions made or actions taken in group situations often need to be kept secret. External opinions or considerations are not required to be included in the decision-making process. Groups often make and implement decisions without consulting external sources. One of the results of this extreme isolation is the isolation of criticism. This lack of resistance can lead to illusions about the group’s insensitivity and morale. Group leadership can also lead to groupthink, as the leader’s total control over the group can lead to an environment where no one speaks their mind. When leadership in a group is highly authoritarian (e.g., in the military), group discussions are often tightly controlled. Suppose the leader in a group situation clearly expresses his opinion at the beginning of the conversation. In this case, group members often refrain from voicing their opposition to the leader’s authority. Any dissent is suppressed through intimidation or simply by not allowing dissent to differ. Another common cause of groupthink is stress related to making decisions. When a group is forced to make an important decision, only some are safe. Group members will try to reduce this decision-making stress only if this uncertainty is reduced when the decision is made quickly. The group can easily justify a decision with little disagreement, as the attrition is minimal. They focus on the positive consequences of group decisions while minimizing the negative impact. Focusing on the small details of a group’s decisions or actions in this way can overlook more critical issues that may need attention. When decisions are made in a high-pressure group, members’ attempts to reduce decision-making stress often lead to groupthink. Some well-known tragedies attribute largely to groupthink in the decision making process, such as the Bay of Pigs invasion and the Challenger disaster. The Kennedy administration, composed of a close-knit group of advisors, made the decision to invade Cuba without fully considering alternative options or adequately

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assessing the risks involved. The group’s strong sense of unity and a desire to present a united front led to a failure to critically evaluate the plan, resulting in a disastrous outcome. In the case of the Challenger disaster in 1986, groupthink was evident in the way that engineers at Morton Thiokol, the company responsible for the shuttle’s solid rocket boosters, were reluctant to speak up about potential safety concerns due to pressure from NASA officials to meet launch deadlines. This led to a decision to launch the shuttle despite concerns about the integrity of the O-rings, which ultimately failed during takeoff and caused the explosion. Both scenarios highlight the importance of diversity of thought and the ability to freely raise concerns in decision-making processes, especially in high-stakes and complex situations. Transparent decision making helps group members avoid prejudice, be innovative, share ideas, and learn from one another. Reduce groupthink and improve group decision making with these six Protective measures. • List the goals of the group. What are your goals for this decision? Show how the goal aligns with the company’s vision and mission by providing supporting evidence. The simple process of creating and sharing with the group allows each member to relate the goal to their functional areas and analyze how it fits into their work. Define the scope of the problem and set clear boundaries. This may seem limited, but it allows people to find creative solutions that can be implemented. Given the company’s resources, you can come up with good ideas that would only be possible with limits. • Create a model. Effective appraisals require rigorous evaluation. A model can organize your thoughts and provide the correct data for your selection. Include one of the following questions in your template: What’s a brief explanation? What is the relationship? What are the assumptions behind this concept? Is it feasible in the framework? What can prevent it? And if we don’t implement it? Your opinion? Do you have any statistics to support this idea? How will secondorder effects benefit in the future? • Brainstorm offline. Share your goals and designs with the offline group and set a deadline for suggestions. Expect these ideas to be discussed at a later meeting and for everyone to think thoroughly and imaginatively beyond their team/their function for the organization and its people. Make sure the group is diverse. Include the functions, involve ideas, and avoid prejudice by keeping your information anonymous. • Create a group policy. It is essential to organize a meeting to hear and discuss any ideas before discarding them. Encourage others to listen without interrupting. The dialogue should be productive and not harmful. Discuss the idea, not the person. This assumption influences how people approach the problem. Evaluate the suggestions using different mental models. Reverse mental models and second-order reasoning models can help the group move from predictable reactions to systems 2 thinking that requires thoughtful effort. A leader must also listen before speaking. The group can discuss without the leader’s influence. If everyone agrees on the options, but further discussion is needed, consider adjourning

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and encourage everyone to prepare more data points for the next meeting. Silent nodding or inactivity indicates groupthink. • Improve the process through feedback. Improve yourself by analyzing the feedback and the results of the process. Decision methods vary. Delphi Technique is powerful in allowing team members to contribute individually without knowing the group’s viewpoint and the few penalties for disagreement. • Use decision support tool. Some of the tools include Group Decision Support Systems (GDSS), which facilitate group communication (check out details in the next Chapter on communication); Risk Analysis tools, which help team members understand and manage risk; Impact Analysis tools, which provide a detailed insight into the consequences of decisions; and Wire of Inference tools, which help people monitor and review the different stages of the decision-making process. Group Polarization Group polarization refers to the phenomenon in which people within a group tend to make more extreme decisions or adopt more extreme attitudes than they would as individuals. The study of group polarization can be traced back to the mid-twentieth century when social psychologists examined how group dynamics can influence individual attitudes and decisions (Sherif, 1936). Group polarization can lead to a “herding effect” where people follow the opinions of the group even if they do not agree with them, leading to increased group cohesion but also potentially to an inability to consider alternative perspectives. During the budget season, the organization’s internal budget committee needs to decide what to spend for next year and how to balance different factors like corporate social responsibility (CSR), branding, media, and advertising spend. Members often find themselves on the other side of the original decision. For example, if a group leans toward lower CSR investments, the team is more likely to end the meeting by spending more money on CSR and vice versa. Some of the psychological foundations for group polarization include social comparison, influence, self-categorization, and shared reality • Social Comparison Theory. People tend to compare their opinions and attitudes to those of others in their group and adjust their views to align with the group’s consensus. This can lead all group members to adopt a more radical view, or one in line with the beliefs of the group leader. • Influence of Information: The influence of information plays a significant role in shaping the attitudes and opinions of group members, either by reinforcing or challenging the group’s shared views. This influence operates through several mechanisms. When the information aligns with the existing beliefs of the group, it tends to strengthen those beliefs, a phenomenon known as confirmation bias, which can result in group polarization. Additionally, the presentation of information can impact its appeal to the group. Suppose the information is framed in a way that emphasizes a particular position. In that case, it can make that position more attractive to the group, leading to framing bias and, subsequently, group polarization.

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• Self-Categorization. People categorize themselves as members of a group and adopt the attitudes and opinions of that group as their own, leading to a sense of identity with the group. • Shared Reality. Group members develop a shared understanding of reality and interpret information in a way that supports their shared views, leading to a confirmation bias and a disregard for alternative perspectives. There are a few tactics for organizations and leaders to adopt to mitigate group polarization (Reeves et al., 2021). • Inhibit group competition but encourage collaboration. According to the study, creating a culture of collaboration can help minimize illusory polarization. This manifests itself differently depending on the type of green work, but a good starting point is to review companies’ incentive structures and replace competitive systems with ones that encourage teamwork. For example, a London-based law firm created an online application that employees can use to earn points with their peers, allowing teams to work together toward common goals. These systems allow employees to interact more deeply and see beyond political divides. • Encourage contact between group members. Spending more time getting to know people with different political views is one of the best ways to break down prejudices and harmful assumptions about them. That doesn’t mean managers should force employees to attend numerous baseball games and work picnics. Research has shown that instead of mixing with different groups in many work situations, individuals often meet their own group. Instead, managers should look for ways to build trust between employees who typically cannot work together. For example, NASA conducts rigorous nature walks prior to missions, during which team members from diverse backgrounds are subjected to testing conditions that accelerate the development of mutual trust. Extreme sports may not be the best fit for your business, but managers must develop an approach that promotes openness and trust among employees. Finding a trusted middleman, someone who knows both parties and can formally or informally foster a bond between two lesser-known colleagues, is one tactic This search was helpful. While there is no specific technique for building relationships, managers can do anything to help their employees connect more deeply, which will help break down negative bias and foster a more productive work environment. • Make it easy and safe for group members to share their opinions. Based on research, restrictions such as a ban on political conversations in the workplace are ineffective. Instead, managers should encourage honest conversations at the individual, collective, and organizational levels. In political conflict, leaders must embody tolerance and compassion by showing how to communicate by example: possibly conflicting opinions without offending employees who might disagree. Additionally, research has shown that explaining a complicated concept can be a humbling and enlightening experience. When people honestly discuss why they hold certain views, it can help them see that they do not have exclusive access to the truth, increasing their openness and understanding of other viewpoints. Conflicts may be difficult at first, but they will be in the long run. Open discussions

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can show everyone that another perspective doesn’t define them, reducing false polarizations among employees. You can speculate about other people’s opinions all day, but the only way to really understand someone is to talk to them.

5.2.3 Group Problem-Solving As a specific type of group decision making, group problem-solving often requires a more structured and focused process and a higher level of collaboration and communication among group members to reach an effective solution. Group problemsolving involves identifying the problem components, understanding the critical considerations in the problem-solving process, and acting on solving the problem (Adams & Galanes, 2008a, b). First, all problems have three problem components. The first component is an undesirable situation. If the situation is desirable, there is no problem. Second, there is an ideal situation. Even if it’s a vague idea, a strong desire exists to improve the situation. A vague idea can become a more concrete goal despite no reaction. Last, there are barriers or obstacles in the way of the desired situation, blocking the group’s goal of solving the current problem. In this phase, decisions are made. Obstacles can be a need for more income, resources, labor, time, or information. Opponents of change or a lack of understanding can also be obstacles. Because each scenario is unique, discussing these three problem elements will help the group refine their problem-solving strategy. All problems share these three general characteristics, but the group should also look at the characteristics of the problem. Adams and Galanes (2008a, b) state that there are five important considerations in the process of problem-solving: the task’s difficulty, the number of possible solutions, group members’ interests in problem-solving, group members’ problem-solving skills, and agreement with the solution. When encountering complex tasks, groups must examine and discuss the task to create common ground. Groups also need to navigate multiple solutions and alternatives. We also need to identify group members’ interests. Group members invest more energy and effort in solving problems when they are genuinely interested. The team members interested in the task and understanding the problem may prefer more freedom in designing and executing solutions. In contrast, low-interest group members may prefer a leader who provides structure and leadership. Team members’ problem-solving skills also play a role in the process. Last, there should be an evaluation of the agreement in implementing the idea. The Group Problem-Solving Process Various problem-solving schemes use the reflective thinking technique of John Dewey (1910). The following steps are important and useful in group problemsolving. However, methodical troubleshooting improves group performance. • Step 1: Define the problem. Define the problem by analyzing the three components of each problem discussed above: current undesirable circumstances, more

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desirable goals or situations, and obstacles (Adams & Galanes, 2009). This step addresses the “what” question. Step 2: Investigate the issue. This step includes assessing the issue and the role of the group within the issue. Group members can now discuss possible causes. Prepare an agenda or schedule for a group. This step addresses the “why” question. Step 3: Generate possible solutions. This is the brainstorming step, and it involves presenting solutions without criticizing them. This step addresses the “how” question. Step 4: Evaluate possible solutions. Group members then need to evaluate the solutions based on credibility, completeness, and quality advantage. After narrowing down the possibilities, the group should analyze all possible outcomes, even undesirable ones. Step 5: Rate and review the solution. Groups may then use various methods to rate and review the effectiveness after adopting the solution.

5.3 Nudge: Application in Work Design We now understand the different types of decision making, the processes, influential factors, and our limitations on biases. This section focuses on the concept nudge. Richard Thaler, the Nobel Prize winner in Economics, popularized the concept in his book with Cass Sunstein in 2009 (Nudge: Improving decisions about health, wealth, and happiness). The foundation of nudge is our dual thinking system: automatic system 1 and reflective system 2. Nudge is to improve our decisions, especially our system 1 automatic thinking, through adaptive designs. Please be noted here that our choice should not be limited. Nudge is on the condition to maintain the freedom of choice. Setting a default option for choosing the most balanced retirement investment plan is a nudge, while not providing other risker options at all for employees is not a nudge. Some of the nudge strategies might overlap with previous suggestions to mitigate biases, but this section shifts our focus to work design specifically. Nudge is designed based on our human nature to address the biases we discussed before. We build the following suggestions mainly based on Thaler and Sustein’s (2009) book and research. First, be cautious about the fact that we make mistakes and design the work system to avoid the error. Second, understand the power of inertia and use default, feedback, and priming to help make the best decisions at work. Third, be aware that we are social animals and design the work system to promote better decisions using social pressure and social comparison. Fourth, understand the difficulties facing complex choices and use mapping, collective filtering, and knowledge sharing to choose the best options. Last, use incentives to motivate employees for the best choice (also check Chap. 3 Motivation).

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Building the System to Avoid Errors We have to understand that error happens (expect error), so we can design the work system to avoid errors. For instance, add a reminder “You might have forgotten to attach a file” automatically when you use the word “attachment” in your email, and add a reminder to confirm when you delete a working file. With long working hours and stressful working conditions, it is very much likely for nurses to make mistakes when they distribute medications. The practice of “unit dose dispensing,” assisted with the bar code medication administration system, where a small dose is packaged, and there’s a mechanism to double check to scan the bar code every time, can effectively reduce errors. Smart infusion pumps were also developed to set up drug infusion protocols with predefined limits and emit an alarm when the dose is out of range compared to the parameters (Page, 2004). Building the System Based on Inertia Tendency We need to understand the power of inertia, which can be harnessed. Many of our decisions are mindless, much more than we expect. That’s why your employer is trying to set up the best default option for your retirement plans and health benefit plans. In case you missed the annual open enrollment deadline, you can still have the most beneficial choice. The default setting is a powerful way to help us. To prevent obesity in Western societies, ergonomic designers make the desks adjustable in height. But when its’ my choice, I will still always prefer sitting down. In a research conducted in a governmental organization where employees share a desk, researchers had an intervention to change the desks from sitting to standing height (Venema, et  al., 2018). Employees seem to forget they are still standing! Their standing time significantly increased, even after 2 weeks and 2 months of the intervention! We constantly check our emails, surf the web, and watch social media or sports news. We can be nudged by changing the default in our email app. Turning off notifications and reducing the synchronization frequency to avoid distracting pop-ups (Ebert & Freibichler, 2017). Feedback can also be a critical tool to nudge our behavior. Research showed a simple nondirectional educational message on the risk of ionizing radiation appended to the CT report reduced the subsequent numbers of CT significantly in teaching hospitals in the UK.  This type of nondirectional nudge intervention is cheap, easy to implement, and effective in modifying clinician use of CT (Lewis et al., 2019). In these messages, you also prime the positive messages. Our automatic system is influenced significantly by the primes. Asking, “are you going to vote?” increased the probability of voting behavior by 25% (Greenwald et al., 1987). Facilitating the formation of a voting plan (i.e., implementation intentions) can increase turnout even more (Nickerson & Rogers, 2010). In the organization, implementation intentions can result in more likely attainment of the relevant goals (Ebert & Freibichler, 2017).

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Building the System by Applying Peer Pressure We are social animals, and we are influenced by peer pressure. We care about where we are among our peers. Just like how advertisements of college drinking rates can reduce drinking and teenage tobacco-free rates can reduce smoking, the workplace can also use peer pressure to build a sense of accountability and community. For instance, publicly recognizing the achievements of individuals may create a positive and competitive environment. Gamification can also provide the competition mechanism to improve competition (please check out Chap. 3, Gamification). Building the System to Help with Complex Choices We have cognitive limitations. In the process of making complex decisions, we still need guidance. For instance, a foundation for the complex choice is to understand “mappings” to link the choice with welfare. It’s hard to choose among the health benefit plans the employers offer. They seem rather complex, and there are too many parameters to compare. HR should provide a complete list for comparisons on top of putting the best default option. Collaborative filtering is also a great way to help. Right now, technologies maximize the possibilities of collaborative filtering with the algorithm. The algorithm can provide employees with personalized recommendations for tasks, projects, or skills to work on based on the behavior and preferences of similar employees. The algorithm can also help managers assign tasks to employees who are well-suited for them, reducing the time and resources spent on training and increasing overall efficiency. This has to be done through the key factor: knowledge sharing. It is also the key for success in innovation for most companies. Organizations come up with all sorts of nudge practices to help with knowledge sharing. For instance, leave one printer on the first floor, to force interactions. “Micro kitchens” were introduced by Google to increase knowledge transfer among knowledge workers in an easy and pleasant way. Building the System Using Incentives In contrast to economic nature, human decisions are not something a free competition can solve. But, sometimes, incentives help. When a competitive consulting firm needs to start promoting more collaboration, incentives on collaborative projects, mentoring, and team-building activities could help. Overall, the empirical literature on nudging has established that choice architecture techniques can succeed in changing behavior in many managerial and policy-relevant settings (Beshears & Kosowsky, 2020). This chapter is designed to equip students with an understanding of the interplay among decision-making elements, behavioral forces, biases, and nudges. I hope you have gained knowledge to differentiate between different types and process models; understand the various forces that impact the decisions; be aware of individual and team biases; and finally, understand how to improve decision making through nudging. What are the key takeaways from the case studies, and how do you intend to apply the knowledge from this book?

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References Adams, K., & Galanes, G. (2008a). Communicating in groups: Applications and skills (7th ed.). McGraw-Hill Humanities/Social Sciences/Languages. Adams, R.  B., & Galanes, G.  J. (2008b). Communication and effective problem-solving. In Essential theories of process and practice (pp. 217–226). Guilford Press. Adams, J. S., & Galanes, J. (2009). Effective group discussion: Theory and practice. Long Grove, IL: Waveland Press. Baron, R. A. (2005). So right it’s wrong: Groupthink and the ubiquitous nature of polarized group decision making. In B. M. Staw & L. L. Cummings (Eds.), Research in Organizational Behavior (Vol. 26, pp. 97–120). Elsevier. Ben-David, I., Graham, J. R., & Harvey, C. R. (2007). Managerial overconfidence and corporate policies (No. w13711). National Bureau of Economic Research. Beshears, J., & Kosowsky, H. (2020). Nudging: Progress to date and future directions. Organizational Behavior and Human Decision Processes, 161, 3–19. Brown, C., George-Curran, R., & Smith, M.  L. (2003). The role of emotional intelligence in the career commitment and decision-making process. Journal of Career Assessment, 11(4), 379–392. Burke, L.  A., & Miller, M.  K. (1999). Taking the mystery out of intuitive decision making. Academy of Management Perspectives, 13(4), 91–99. Chidambaram, L., & Tung, L. L. (2005). Is out of sight, out of mind? An empirical study of social loafing in technology-supported groups. Information Systems Research, 16(2), 149–168. Dewey, J. (1910). How we think. DC Heath & Co Publishers. Ebert, P., & Freibichler, W. (2017). Nudge management: Applying behavioural science to increase knowledge worker productivity. Journal of Organization Design, 6, 1–6. Eisenhardt, K. M. (1989). Making fast strategic decisions in high-velocity environments. Academy of Management Journal, 32(3), 543–576. Ezeamalu, B. (2021, July 12). SPECIAL REPORT: Banker Francis Atuche’s long walk to prison. Premium Times Nigeria. https://www.premiumtimesng.com/news/headlines/473025-specialreport-banker-francis-atuches-long-walk-to-prison.html Fernández-Berrocal, P., Extremera, N., Lopes, P. N., & Ruiz-Aranda, D. (2014). When to cooperate and when to compete: Emotional intelligence in interpersonal decision-making. Journal of Research in Personality, 49, 21–24. Festinger, L. (1957). A theory of cognitive dissonance. Row, Peterson. Galasso, A., & Simcoe, T. S. (2011). CEO overconfidence and innovation. Management Science, 57(8), 1469–1484. Gates, G., Ewing, J., Russell, K., & Watkins, D. (2015, October 8). How Volkswagen’s ‘defeat devices’ worked. The New  York Times. https://www.nytimes.com/interactive/2015/business/ international/vw-diesel-emissions-scandal-explained.html?_r=0 Gigerenzer, G., & Goldstein, D. G. (1996). Reasoning the fast and frugal way: Models of bounded rationality. Psychological Review, 103(4), 650–669. Greenwald, A. G., Carnot, C. G., Beach, R., & Young, B. (1987). Increasing voting-behavior by asking people if they expect to vote. Journal of Applied Psychology, 72, 315–318. Humphery-Jenner, M., Lisic, L. L., Nanda, V., & Silveri, S. D. (2016). Executive overconfidence and compensation structure. Journal of Financial Economics, 119(3), 533–558. Janis, I. L. (1972). Victims of groupthink: A psychological study of foreign-policy decisions and fiascoes. Houghton Mifflin. Kahneman, D. (2011). Thinking, fast and slow. Macmillan. Langewiesche, W. (2009). Fly by wire: The geese, the glide, the miracle on the Hudson. Farrar, Straus and Giroux.

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Lewis, S., Young, B., Thurley, P., Shaw, D., Cranwell, J., Skelly, R., et al. (2019). Evaluation of a nudge intervention providing simple feedback to clinicians of the consequence of radiation exposure on demand for computed tomography: A controlled study. Clinical Medicine, 19, 290–293. Liebowitz, J., Chan, Y., Jenkin, T., Spicker, D., Paliszkiewicz, J., & Babiloni, F. (2019). If numbers could “feel”: How well do executives trust their intuition? VINE Journal of Information and Knowledge Management Systems. ahead-of-print. https://doi.org/10.1108/ VJIKMS-12-2018-0129 Lovallo, D., & Kahneman, D. (2003, July). Delusions of success: How optimism undermines executives’ decisions. Harvard Business Review. https://hbr.org/2003/07/ delusions-of-success-how-optimism-undermines-executives-decisions Miner, F. C., Jr. (1984). Group versus individual decision making: An investigation of performance measures, decision strategies, and process losses/gains. Organizational Behavior and Human Performance, 33(1), 112–124. Nickerson, D. W., & Rogers, T. (2010). Do you have a voting plan? Implementation intentions, voter turnout, and organic plan making. Psychological Science, 21, 194–199. Page, A. (Ed.). (2004). Keeping patients safe: Transforming the work environment of nurses. National Academies Press. PwC Management Services LP. (2018, December 24). Gut over gigabytes  – Experience/intuition take reign over data for executives when making big decisions. https://www.newswire. ca/news-releases/gut-over-gigabytes%2D%2D-experienceintuition-take-reign-over-data-forexecutives-when-making-big-decisions-515740561.html Reeves, M., Quinlan, L., Lefèvre, M., & Kell, G. (2021). How business leaders can reduce polarization. Harvard Business Review. https://hbr.org/2021/10/ how-business-leaders-can-reduce-polarization Ringelmann, M. (1913). Research on animate sources of power: The work of man. Annales de l’Institut National Agronomique, 12(2), 1–40. Roehrich, J., Grosvold, J., & Hoejmose, S.  U. (2014). Reputational risks and sustainable supply chain management: Decision making under bounded rationality. International Journal of Operations & Production Management, 34(5), 695–719. https://www-emerald-com.ezproxy. library.ubc.ca/insight/content/doi/10.1108/IJOPM-10-2012-0449/full/html Sherif, M. (1936). The psychology of social norms. Harper. Simon, H.  A. (1955, February). The Quarterly Journal of Economics, 69(1), 99–118. Oxford University Press. https://www.jstor.org/stable/1884852 Simon, H. A. (1957). Models of man; social and rational. Wiley. Simons, T., Pelled, L.  H., & Smith, K.  A. (1999). Making use of difference: Diversity, debate, and decision comprehensiveness in top management teams. Academy of Management Journal, 42(6), 662–673. Snowden, D.  J., & Boone, M.  E. (2007). A leader’s framework for decision making. Harvard Business Review, 85(11), 68. Soelberg, P. (1966, December). Unprogrammed decision making. In Academy of management proceedings (Vol. 1966, No. 1, pp. 3–16). Academy of Management. Thaler, R. H., & Sunstein, C. R. (2009). Nudge: Improving decisions about health, wealth, and happiness. Penguin. The Star. (2018, December 7). KPMG: CEOs still rely on intuition in this digital and data-driven era (The Star) (pp.  149–168). Industry Platform. https://iotbusiness-platform.com/insights/ kpmg-ceos-still-rely-on-intuition-in-this-digital-and-data-driven-era-the-star/, https://doi. org/10.1287/isre.1050.0051 Trueblood, J. S., Sussman, A. B., & O’Leary, D. (2022). The role of risk preferences in responses to messaging about COVID-19 vaccine take-up. Social Psychological and Personality Science, 13(1), 311–319.

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Venema, T. A., Kroese, F. M., & De Ridder, D. T. (2018). I’m still standing: A longitudinal study on the effect of a default nudge. Psychology & Health, 33(5), 669–681. Wikipedia Contributors. (2021, December 21). US airways flight 1549. In Wikipedia, The Free Encyclopedia. Retrieved from https://en.wikipedia.org/wiki/US_Airways_Flight_1549 Woolley, A.  W., Chabris, C.  F., Pentland, A., Hashmi, N., & Malone, T.  W. (2010). Evidence for a collective intelligence factor in the performance of human groups. Science, 330(6004), 686–688. Ofem E. Ofem  is a distinguished business executive with broad professional experience in program management, consulting, business development, entertainment, and technology. Ofem holds an MBA from Herberger Business School, St. Cloud State University. He is studying simultaneously for the Master of Engineering Management at Saint Cloud State University’s Plymouth Campus and Doctorate of Business Administration at Saint Mary’s University of Minnesota. A notable contributor to business literature, Ofem’s acclaimed works include “Ethical Compass: A Small Business Handbook on Ethics,” “The Art of Corporate Sponsorship,” and “Small Business Handbook for Motivating Teams.” Ofem’s diverse experience and impressive academic background make him a unique thought leader. His knack for translating business insights into compelling narratives has cemented his influence as an author, inspiring a global audience. Yuxi Wang  is the Chief Executive Officer (CEO) of Beijing Duomi Development School, a pioneering and innovative institution in China. With a strong focus on adolescent motivation education, Wang is recognized as an expert in her field. She is at the forefront of developing novel approaches to inspire children to cultivate a genuine love for learning and achieve exceptional academic performance without relying on supplementary tutoring.

Chapter 6

Communication, Conflict, and Negotiation Thad C. Olson

Abbreviations BATNA ESM GDSS

Best Alternative to The Negotiated Agreement Enterprise Social Media Group Decision Support System

Amazon Internal Communication Problems In 2019, Amazon workers were upset. They had many concerns about working conditions and employment policies among them, and they were pushed to the brink. Specifically, Amazon workers were unhappy with the minimum wage they were receiving. Amazon eventually raised its minimum wage to $15 per hour. Employees also spoke out about the mandatory 60-hour weeks during the holidays and warehouse conditions. In a separate incident, Amazon was accused of misleading lenders about workplace safety records and had been cited at their warehouses for not reporting injuries correctly (Vanderford, 2023). In 2009, Amazon was also in the headlines because employees who used the bathroom on company time would be disciplined (Streitfeld, 2021). Workers had planned a rally outside Jeff Bezos’ residence in Manhattan and leaked to the media when it could happen. Amazon executives chose to use social media tools to combat the negative press and apparently ignored the core issues. Dave Clark, Amazon’s SVP of Operations, responded to a Twitter post on warehouse conditions by John Oliver. In this post, Clark alluded to the $15 per hour wage and “one of many programs” Amazon offers. This post was specific about the wage increase but not specific about other programs being offered, and it did not mention the warehouse conditions. In other attempts to have Amazon comment about workers’ complaints, Amazon tended not to reply at all. As with many organizational problems, there was a breakdown in communication and an enormous opportunity to improve Amazon’s internal communication T. C. Olson (*) Becker, MN, USA © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 N. Hou et al. (eds.), Organizational Behavior, https://doi.org/10.1007/978-3-031-31356-1_6

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between employees and management. A wage increase across the board can be communicated easily to employees and would greatly impact the company. And during the holidays, this could help hire more employees to minimize 60-hour weeks or remove them altogether. The “other programs” need to be discussed internally, and hopefully, they pertain to the warehouse conditions and long hours employees are concerned about. A dysfunctional conflict between the office and warehouse employees and the company existed, but the resolution between the parties was not clear. Amazon and its founder Jeff Bezos are popular for their conflict-­ handling strategy of disagreeing and then committing (Belludi, 2020). The  disagreement between management and employees  was apparent; however, there is no evidence of anyone committing to solutions. It seemed as though the leaders at Amazon were avoiding the topics employees were most concerned with. At the time, it looked like Amazon was not willing to negotiate with employees or possibly took a negative tone to the employee wants. What type of specific concerns did Amazon employees have? What could have caused management not to hear or know of these concerns? If you run Amazon, how would you create a communication loop to hear, review, and act on employee concerns? What type of conflict were the employees having with Amazon management? Which conflict mode or modes did management use with the employees? If you were negotiating on behalf of the Amazon employees, what strategy or strategies would you use for the best outcome? What is the best outcome for both parties? (Source: Hoffmann, 2019).

6.1 Communication What is the process of communication? Which type of communication method works better in a specific situation? How are different levels of communication different in the organization? Businesses’ communication media varies: how should we choose among them? As communication methods have changed during the COVID-19 pandemic, what barriers affect communication at various levels? And, what are strategies to remove these barriers? This section will discuss the process, different types of communication, levels of communication, media options, and communication barriers.

6.1.1 Process At its core, communication is a process and it starts by wanting to share an idea for another person or group of people. The sender encodes the idea using words, symbols, or gestures, which is then turned into a message. The message is sent to the receiver via a medium, and then the receiver must decode the message and provide feedback. Anything that distorts or causes the message to be misinterpreted is a

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communication barrier, and they can stop the message or change how it is received (Lunenburg, 2010a).

6.1.2 Types 6.1.2.1 Verbal and Nonverbal Verbal Communication Communication is given and received in different forms. Verbal communication can be spoken and written. We are using verbal communication daily within the organization, face-to-face, in virtual meetings, over the telephone, or in written form. Employees use verbal communication to share information, exchange new ideas, and interact to complete their job. Businesses use written communication to share mission statements, corporate slogans, goals, values, announcements, and daily tasks to be done. Verbal communication is the main source for employees to gather, share, and use critical knowledge (Harris & Nelson, 2007). It is also equally important to receive and decode the message. Listening is a skill that is not always developed in school and in organizations today. Most organizational leadership training programs focus on how leaders can communicate effectively one way. Rarely do they include how to listen effectively. Effective listening from managers can increase employee satisfaction, trust, retention, and performance (Itzchakov & Grau, 2022). Nonverbal Communication Nonverbal communication is just as important to organizations and their workforce. Nonverbal communication comes in various cues. These cues help us send messages and understand the meaning and intent of a message someone shares with us; it can also hinder the process of communication. The following section introduces nonverbal communication codes (Bonaccio et al., 2016): body codes can be broken down into kinesics, eye contact, and appearance; sensory and contact codes are made up of haptics, vocalics, and olfactics; spatiotemporal codes include proxemics, chronemics, and environmental. • Body Codes –– Kinesics – Kinesics includes posture, poses, and other physical characteristics of the body (Lunenburg, 2010b). Superiors may lean back, look around the room when being spoken to, and these cues give the impression of being disinterested in a topic or person (Kudesia & Elfenbein, 2013). A high-power pose, such as sitting in a chair, leaning back with arms up, and fingers interlocked behind the head, can increase testosterone and reduce cortisol. Increased testosterone will lead to a feeling of more power and dominance, while reduced amounts of cortisol lead to a feeling of less stress (Carney et al., 2010). Postures can also predict motivation and social skills during the employment interview process.

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–– Oculesics – Oculesics is known as eye contact, which can signal the start and finish of a conversation, reflect interest and attention in the topic, show emotion, and describe how the communicators feel about one another (Lunenburg, 2010b; Harrigan, 2005). Eye contact, or lack thereof, also speaks volumes on whether someone is lying or unsure of themselves. In job interviews, ­applicants are sometimes nervous and suffer from communication apprehension and anxiety in eye contact with the interviewer. One study showed positive results when the interviewer was an avatar robot compared with a human being (Mehmood et al., 2021). This would allow candidates to be more comfortable, and employers would obtain a more accurate interview with the interviewee. The meta-analysis also demonstrated the importance of eye contact on job performance (Martín-Raugh et al., 2022). –– Appearance – Everyone experiences first impressions when meeting someone new, and facial expressions can impact how one feels about another. Smiles often convey warmth, happiness, and positivity, and frowning could be a signal of dissatisfaction or anger (Lunenburg, 2010b). People who tend to smile more are thought of as more honest than those who do not smile (Todorov et al., 2015). Humans gather information about other people by their appearance, specifically their faces. Politicians’ appearance affects voting habits (Olivola & Todorov, 2010). Babyface and attractive features make the person seem more competent. People are more likely to pick a winning, more attractive face as a leader than the alternative (Little et al., 2007; Wyatt & Sylvester, 2018). Social perception of each type of face lends itself to be associated with dominance, being physically weak, submissive, and honest. Masculine faces are tied with dominance, whereas more feminine faces are considered submissive. The dress can also impact your job interview results as one nonverbal cue. For example, applicants ranked dress as a way to predict the level of social skill in applicants (Gifford et al., 1985). However, job interviews have changed during and after the COVID-19 pandemic. The dress may not be as important during a video conference job interview. Or, in some situations, applicants may only be viewed from the shoulders or neck up. –– One interesting perspective is that the perceptions of different parties vary. In job interviews, the interviewee perceives how they dress up, and trunk recline posture is important to showing their motivation. The judges believed that smiles and time talked are the best categories to predict motivation (Gifford et al., 1985). • Sensory and Contact Codes –– Haptics – Haptics refers to communication through touch. Often, light physical interactions can create an initial bond between people and increase cooperation. In business, a handshake can be a warm greeting between new colleagues. Another hand-to-hand touch, a fist bump, can signal “hello” or “hi” playfully. In organizations such as hospitals, physical touch is frequent and sometimes needed. For instance, studies have shown that increased physical touch by nurses can bring on greater workplace well-being for the nurses. The studies also showed that nurses uncomfortable with physical touch could

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lead to burnout and less job satisfaction (Pedrazza et al., 2015). Physical touch can also be unwanted. Sexual harassment, or perceived sexual harassment, has zero tolerance in businesses. With the COVID-19 pandemic being front and center in everyone’s mind, physical touch was found to transmit the virus more frequently (Dawson & Dennis, 2021). During the pandemic, touchless technology helped reduce the spread of viruses (Iqbal & Campbell, 2021). –– Vocalics – Vocalics is made up of pitch, range, volume, accent, and pronunciation. A rising pitch may indicate that someone is upset, angry, stressed, or nervous. A lowering pitch maybe someone trying to explain a complex topic or calm another person down. Information about a supervisor or manager can be taken from their vocalics, for instance, whether their employees are fond of them (Hinkle, 2001). –– Olfalics – Olfalics is known as smell. Olfactics can be expressed if someone is nervous, sick, or has been working in certain environments. A good scent can attract people, while an unpleasant smell pushes or keeps people away. Unpleasant-smelling employees can gain a reputation as someone who does not practice good hygiene habits. Other employees will not want to work with or around an employee with a body odor issue (Bonaccio et al., 2016). • Spatiotemporal Codes –– Proxemics – Proxemics refers to space usage, seating arrangements, and personal and interpersonal space. Typically, the higher-ranking employees in a company have nicer and bigger offices. These offices tend to be away from the general population and are protected more from noise and walk-by traffic. Using some thoughts on seating arrangements can help to facilitate a difficult conversation. Seating someone next to you at the table can aid in cooperation. To increase collaboration, organizations tend to put groups of people in the same team together with cubicles next to or adjacent. In contrast, if you are negotiating or taking a competitive position, you should place the person across the table from you (Lunenburg, 2010b). Individuals view interpersonal space differently. Depending on the level of social anxiety someone has, they will have a preferred distance of interpersonal space. Typically, a person with higher social anxiety prefers more distance between themselves and who they may communicate with (Perry et al., 2013). –– Chronemics – Chronemics focuses on the use of time. Meetings are common throughout the business day, and being on time or late can signal different messages. Being on time, in general, is expected, but higher-ranking employees can be late without issue. Sometimes, this is even expected. Being late to meetings could also make people believe that the high-ranking person is very busy. When lower-ranking employees are late, they can be perceived as lazy, don’t care about the topic or the meeting leader, or do not want to be involved. Lower-ranking employees could have a negative stigma attached after the meeting, whereas higher-ranking people may not (Lunenburg, 2010b). –– Environment  – Organizational environment involves office floorplan and décor. The office floor plan can show how various groups sit together to create

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Table 6.1  Nonverbal code summary Code Body

Code type Kinesics Oculesics Facial expression Appearance

Sensory and contact

Spatiotemporal

Haptics

Characteristics Posture, pose, and hand gestures Eye contact, gaze, and facial expressions Smile, frown, no expression Attractiveness, facial characteristics, and dress Physical touch, handshake, fist bump

Vocalics

Pitch, range, volume, accent, pronunciation

Olfalics

Smell

Proxemics

Space usage, seating arrangements, and interpersonal space Time usage

Chronemics

Environmental Floor plan, décor, company slogans, and values

Organizational example The high-power pose is associated with dominance Eye contact can reflect confidence A smile conveys warmth; a frown can reflect sadness Professional dress can signal ambition A handshake can signal cooperation. Refusing a handshake reflects being angry Constant pitch reflects comfort, and quickly increasing pitch can reflect stress and anxiety The bad smell could be body order from stress Arranging cubicles together can increase cooperation Being on time for meetings can signal you think the meeting is important; being late can mean you do not care about the meeting Office wall pictures, slogans, and messages tell people what is important within the company

teamwork dynamics. Cubical walls tended to be high for privacy and trended toward shorter walls to increase communication. During the COVID-19 pandemic, many businesses brought back the higher walls to create office barriers. Décor can signal warmth in the office or the opposite. Many businesses use walls to communicate company slogans, goals, or other messages (Bonaccio et al., 2016) (Table 6.1). More and more organizations are creating their own leadership training programs to teach leaders how to use verbal and nonverbal communication effectively. Organizational leaders must understand their verbal and nonverbal cues to send the right message and lead positively. 6.1.2.2 Levels of Communication There are different levels of communication in the organization. Employees use intrapersonal communication when handling their various tasks on their own. Dyadic communication comes into play when working with a coworker. Team

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communication happens during meetings or problem-solving throughout the day. Finally, organizational communication occurs when the leadership team or CEO sends a message about the company’s status, directives, or changes. Each level of communication offers advantages and disadvantages. Intrapersonal Communication Intrapersonal communication can be considered self-talk. Athletes often use self-­ talk to create inner motivation to meet goals or prepare for the big game. These same principles are used in the business world as well. Self-talk is a great method to “pump one’s self-up” before a big meeting or presentation; to work through a problem as one studies it at their desk; or, to be used to calm down during stressful situations. Intrapersonal communication can start very early and can be associated with positive development outcomes (Geva & Fernyhough, 2019). Those who spend more time in social isolation have higher levels of self-talk. Dyadic Communication Dyadic communication is the interaction between two people. People spend significant amounts of time communicating one on one at the workplace. The COVID-19 pandemic pushed technology and businesses to adopt other methods of communication in lieu of face-to-face methods due to exposure. Today, businesses provide employees with multiple avenues for communication. Organizations must strike a balance between providing employees with the technology they want and protecting them from too many options and bad information (Stich et al., 2018). Hierarchy, organizational structure, and culture are important factors that play a part in dyadic communication. The hierarchy refers to the position each person has within the organization. If one person is ranked high in the organization and communicates to someone who is considered low ranking, it can be a one-sided message. Also, messages going from low-ranking members to high-ranking members may lack informality and affection. Organizational structure can also affect dyadic communication. Rigid structures can force a message to travel through multiple dyadic partners from the original communicator to the intended receiver. However, less strict structures could allow fewer’ intermediaries to be involved with this communication. In terms of culture, a strict culture may stop or slow down communication about new ideas and processes. A culture that is open to new ideas will foster this type of thinking. However, a culture that is too open can actually stop improvement and progress. Team Communication How effectively team members can communicate their thoughts and ideas directly affect decision-making. During the COVID-19 Pandemic, organizations used new tools to keep their people connected and able to work in groups. Without small-­ group communication, most businesses would not succeed. Communication in groups in the workplace is not always free-flowing. There could be a predetermined but unspoken social pecking order. Members of the group who rank higher title-wise in the organization may carry more decision-making

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weight than entry-level people. This can be a barrier to positive communication as the lower-ranking person may not feel comfortable speaking up. Individual participation may depend on which ideas are approved or rejected. Those with rejected ideas may become quiet during further discussion. One tool to facilitate group discussion is the Group Decision Support System (GDSS). GDSS is a technology-based aid to help groups make quality decisions by guiding them through a situation where they have all the necessary tools and information (Aiken & Martin, 1994). GDSS are gaining more traction within organizations because they combine communication, computers, and decision-support methodologies. GDSS structures increase communication effectiveness and speed and allow anonymous input and idea critique, which could add value to decision-­ making (DeSanctis & Gallupe, 1984). Anonymous input helps group members to not feel embarrassed if their idea is rejected as other group members would not know whose idea it was and can increase participation (DeSanctis & Gallupe, 1984). Additional synergies are found as groups can use an idea in ways originally unintended. Automated recordkeeping of meeting notes is available to help the group capture all aspects of the meetings and helps keep progress moving forward. Organizational Communication Communication at the organizational level can have a drastic effect on workplace performance. Different communication methods and challenges arise in different situations. For instance, during an organizational change, communication is the key to making it successful. How employees perceive the change and its impact on their job is important, as they will talk about this daily with coworkers. Organizational change has a higher percentage of success when communication occurs at every level throughout the business during each step of the change (Jones et al., 2004). A common form of organizational communication is gossip, particularly during the day-to-day activities of all groups. Gossip is generally between a few people to inform and review another person within the organization (Kurland & Pelled, 2000). Informal talk constantly happens throughout the day, often with people who may be friends. Gossip can be broken down and characterized into being good or bad, with both types having different effects on people. Positive gossip can increase power because this can influence people to do something they normally would not do. Negative gossip is intended to hurt but also makes people look negatively at the person spreading the gossip (Pfeffer, 1992). A study on relational diversity explains the more conversations people have throughout the day with different types of people, the more even and better off people will be (Rascoe et al., 2022). For example, if someone only talks to their colleagues, they miss out on conversations with family and friends. The same could hold true within organizations. If employees only talk to their boss, they miss out on conversations with coworkers and others throughout the organization, which could help fulfill their day. In the organization, leaders’ emotional displays can also have a critical impact. Remand and Patterson (2006) explain that the more cohesive a group is, the more

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this affects them. Leaders using negative emotions tend to have these emotions copied. Their view questions the idea of reading the emotions of others as an avenue of mistaking negative reading emotions.

6.1.3 Media Businesses provide many communication media to their employees. At any given time at work, you may walk to the desk of someone or office to talk face-to-face; you may use a desk phone or possibly a phone connected to your computer; you may use text messages or instant messengers to contact coworkers, or you may also use video conferencing with or without a camera (Standaert et al., 2022). This section lists some examples of traditional and new media. 6.1.3.1 Traditional Media Comparing some traditional media, Kinney and Watson (1992) created a lab-­ controlled experiment to measure decision time based on a dyadic communication medium. The three mediums were face-to-face, telephone, and computer text. The experiment showed that the average time to complete a single task was 25 min for dyads communicating through the computer text medium. Nine minutes was the average time for a task to be completed using face-to-face communication, and 10 min using the telephone (Kinney & Watson, 1992). This is an interesting and important study for those who prefer email and text to phone calls or face-to-face discussions. After 30 years of technology change, we should conduct a replication to determine whether face-to-face use is still more efficient. Cultural differences also need to be considered when we conduct comparisons like this. Situations also make it different. Managers should not have difficult conversations with an underperforming employee through email. It is hard to judge the tone of an email, and your message will get misconstrued. Emails should be used when questions are not expected. If the message you are trying to send required clarification, a meeting would be the best. People can sit in a group and ask questions. And if you’re trying to ensure sure your message is heard, you should use multiple media: presentations during a meeting, email follow-ups and reminders, and signs throughout the office. While organizations do their best to provide multiple tools to increase effective communication, there can be information and communication technology overload. With the tools to decrease the time to get the right messages to employees, these same employees can be overloaded with the wrong messages. The communication tools listed above can divide attention and mandate multi-tasking for employees to be constantly checking and/or replying to messages. Business-provided cell phones make communicating easier. However, they also allow for communication outside

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work and during personal time. These new stresses can be referred to as “technostress” and affect all employees (Stich et al., 2018). 6.1.3.2 New Media The COVID-19 pandemic pushed new media tools into the spotlight along with bringing traditional media into a new age. Businesses started to use video meetings more frequently to practice social distancing and keep people working from home in communication. Microsoft Teams and Zoom became popular tools within organizations. And social media became a communication and marketing tool that businesses could leverage significantly more during the pandemic than before it. Video Meetings With the adaption of video meetings, companies could continue important communication daily to work together and keep businesses moving. While these meetings brought about an alternative to face-to-face communication, they brought up new problems. Employees working offsite or at home while using video meetings did not feel the same social connection as the previous face-to-face communication brought. Presenters could not as easily see a room full of people and react to visual cues. Video meetings were a new communication tool, but people seemed to not know how to use this yet fully. Hills et al. (2022) created experiments using video meetings to test certain gestures to see how they affected the quality of the meeting. At the end of experiment one, the group of students trained in the gestures rated the meetings higher in quality. There was also a lower proportion of negative utterances and a high proportion of positive utterances compared to previous meetings without the use of specific gestures. This experiment showed that students trained in new social cues, which all were in understanding of, would increase the effectiveness of video meetings. The Zoom fatigue problem also stemmed from the increased use of virtual meetings. Fatigue was caused by home workers being in Zoom meetings most of the day. Hackers could hack into meetings being conducted on Microsoft Zoom, causing problems for businesses and personal privacy. One specific feature, the camera use, was studied. Using an experience sampling field experiment, researchers found that the link between camera usage and perceived fatigue and fatigue ultimately impacts the performance of the same and the following day. This effect is stronger for female employees and new members of the organization. (Shockley et al., 2021). Social interaction anxiety is a mechanism of zoom with a camera on zoom fatigue (Ngien & Hogan, 2022). Virtual meetings can be a time-saver for organizations when used correctly (e.g., Standaert et al., 2022). Previously, companies would spend time and money flying team members around the world to meet clients. This costs money, employee time, and the potential for burnout and fatigue. With the virtual meeting option, companies and their customers can meet on short notice if needed without the need for travel. Furthermore, when customers want to see what they have purchased before

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shipment, organizations can use virtual meeting tools to reduce time and money on the customer’s end. Other advantages include a higher number of participants and shorter meetings. Shorter meetings could be a result of people not sitting next to each other and having side conversations. Future meetings could use more modern technology, such as virtual offices, and save the organization time. Social Media Social media is a popular communication tool throughout the world today. Most people use at least one form of social media multiple times each day. It is a great way to stay connected to family, friends, the latest news, and businesses around the world. Businesses use social media in various ways. Customers can subscribe to feeds from their favorite companies to obtain information on the latest and greatest products. Customers can also use social media to get support and help for problems they are having with products. Enterprise Social Media (ESM) is defined as a web platform to allow employees to communicate with one another and share files (Van Osch et al., 2015). ESM does have various challenges that organizations must overcome. Data cannot be stored in a structured manner, making it tough to find saved files. Missing someone in your ESM group can cause delays in sending and receiving messages. The ESM rollout may not be structured or have a directive behind it. This could cause some workers to use and rely on the new tool while others simply do not use it. ESM use within an organization can save time and make communication efficient, but it needs structure when deploying to many employees. Organizations must decide which social media platforms to use (Culnan et al., 2010). Someone should be given the responsibility to govern the platform and content. Metrics need to be developed to determine the actual value of social media use. All applications must be readily accessible, and all risks need to be reviewed and managed. A similar perspective shows the importance of continuous monitoring and setting goals and short-term and long-term social media goals. Social media can exploit target audiences such as customers; however, without a solid strategy, these exploitations can hurt the business (Badea, 2014). However, sometimes employees use ESM for personal reasons during work. Quick conversations can happen about weekend plans or events, the next vacation, or what people are having for lunch. Gossip can also be communicated quickly via ESM.  One perspective is that using ESM during the workday actually increases effective organizational commitment and positively affects employees (Luo et al., 2018). IBM developed their own ESM called ‘The Beehive system’. This system was similar to many popular social media platforms but could only be used by internal employees. Employees could connect with any thousands of users with IBM and took advantage of better content sharing with colleagues. IBM reported that The Beehive helped people connect with new people and knowledge expertise, bringing a perception of an increased community among users in the company (Leonardi et al., 2013). The best communication method to pick depends on why you should meet and the message you want to send. Refer to media richness to help find the best method.

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It is best to use a method to minimize misinterpretations of the message you want to communicate.

6.1.4 Barriers Many barriers hinder effective communication between team members or between management and employees. Communication barriers are anything that stops us from receiving a message in its intended way (Rani, 2016). Barriers can be environmental factors, cultural, language, or personal experience. All barriers can affect a message being received clearly. It is important to understand each type of barrier to ensure the message is received in the way it is intended. 6.1.4.1 Personal Personal experience or perception can hinder our ability to communicate with the audience’s blinded perspective. A manager’s previous functional experience can create a belief construct that could limit their perspectives. Individuals in leadership roles come from different backgrounds and have their own personalities. Their mannerisms can create communication barriers based on the factors specified. This creates a challenge for the management in that the manager’s perspectives often have a wider range than their previous functional experiences and limited connections between the beliefs (Walsh, 1988). The key takeaway from the study concludes that the type of functional experience correlated with both types of selective perception (information attended to and problems identified). This study supports that managers are selective processors of information whose previous experiences influence their cognitive processes. However, the perception can change if they are asked to identify more problems with a broader observation, as noted in the experiment. The findings of this study continue to add to the body of evidence that managers are selective perceivers of problems in an organization, and how problem identification objectives are communicated can dictate their vision, an important barrier to note when communicating with managers during the identification process of organizational problems. 6.1.4.2 Environmental Environmental barriers are all around people in the organization. Unlike spoken communication, where you can enrich the communication via inflection, non-verbal physical cues, as well as the ability to immediately correct your meaning based on instantaneous feedback by the listener, email communication in the written form lacks this ability both in terms of timing or cadence as well as conveying emotion and tone. The study by Kruger et al. (2005) showed that our own perception could

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drive us to be blinded to our egocentrism when communicating via email, operating with the assumption that the recipients can interpret our exact meaning and tone. This experiment demonstrates an important challenge regarding email communication that employees often overlook in workplace communication: email lacks contextual information that is critically important for conveying emotion or tone. This challenge becomes even more clear regarding emotionally ambiguous concepts (e.g., sarcasm, humor) that are more challenging to convey in strictly written communication. As we saw, to make matters more complex, those who engage in email communication tend to be primarily focused on their own experience and often fail to consider the reader’s perspective. 6.1.4.3 Cultural Organizations today are far more culturally diverse than 5 or 10  years ago. Technology has improved and allows direct communication between people thousands of miles apart. Expanding businesses in other cultures gives a great advantage to those who can do it successfully. European companies that can set up a satellite office in America can get a head start in American markets. However, there are hurdles to overcome when communicating across cultures. Researchers argue that communicating with diverse cultures requires being aware of cultural differences. A sense of empathy for those you are attempting to communicate with can help get the message received correctly (Rani, 2016; Jenifer & Raman, 2015). At times, working with European work cultures can be frustrating for Americans. European cultures like to discuss problems at length with minimal action until all parties are heard, and a decision is made. Americans tend to discuss quickly and move to action. Whether the action was right or wrong, people move forward. If the action ended up not being a solution, you have a lesson learned and continue to move forward. Additional cultural training can help create a better cross-cultural experience. 6.1.4.4 Language Along with cultural differences, worldwide organizations face a language barrier. These organizations have offices in different parts of the world and must navigate employees using different languages. With increasing diversity everywhere, even smaller businesses can see language barriers. Companies with a single location in a small town in the Midwest can still use more than one language. It is common in rural Minnesota to have English- and Spanish-speaking workers on the same team. Rani (2016) explains that language barriers happen regardless of the language they speak. Slang terms and new words could also become barriers. A great way to get past language barriers is to prepare for communication. Think about what the message is and how you are sending it. And, maybe most importantly, how could it be misinterpreted? Voice level, tone, and active listening can help ensure sure people hear your message the way you intend. Jenifer and Raman (2015) argue that the

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language barrier is the biggest problem within multicultural teams and say one remedy is language training. 6.1.4.5 Gender Hancock and Rubin (2015) conducted an interesting study on how men and women communicate. The study hypothesized that the communication partner’s gender is an essential factor that could influence a speaker’s language. When discussing communication, the message’s sender is often studied in how the message is sent. However, this study breaks down how the receiver of the message affects communication. Hancock and Rubin (2015) found that stereotypical language was used more when the communication partner and receiver were female. More dependent clauses and interruptions happen when the receiver is female, regardless of the gender of the sender. Talkativeness is a trait many in business have. The “gift of gab” might be synonymous with Sales Teams who can generate discussions with customers. Brescoll (2011) studied how talkativeness can change the opinions of CEOs in an organization and found that female CEOs who talked significantly longer than others were viewed as less competent and not the best leader compared with a male CEO. This study also found that a female CEO who talked significantly less compared to a male CEO would be just as competent. Essentially, a high-power male can be talkative, but a high-power female cannot without fear of facing a backlash of some sort. 6.1.4.6 Organization Communication barriers exist at the organizational levels because of organizational structure, geographical layout, cultures, and employee personalities. Employees within the business are located in various departments and have different roles from those around them. These factors bring on different skills, motivations, and personalities. Information could flow differently from one person to the next because of these factors. Organizations use different terms, which can hinder communication with other businesses, such as customers or vendors. The day-to-day cultures may differ, thus causing potential barriers. A lack of trust between people or businesses may be clear, and a lack of concern for the other’s agenda can create a barrier (Fischer et  al., 2016). Some businesses have multiple facilities, which can slow down or stop communication between people and teams.

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6.2 Managing Conflict Conflict Conflicts are all around the daily inner workings of organizations. Conflicts can be good for improving businesses daily. Strategies to run the operational side of companies sometimes make a point of creating good conflicts, such as bringing problems to the surface and getting groups together to find solutions. Unfortunately, some conflicts in business are bad and cause real problems. What is the difference between good and bad conflicts? What are some strategies to work through conflicts? How do gender and culture affect conflict and conflict resolution?

6.2.1 Functional Versus Dysfunctional Conflicts can be broken down into functional and dysfunctional conflicts. Functional conflict is a constructive challenge of thoughts and ideas (Massey & Dawes, 2004). Respect is maintained throughout any disagreement, promoting open thinking and building off others’ ideas. Functional conflict is vital in business and aids in teamwork. Without functional conflict, companies would not grow and create new ideas and processes. Verma (1998) provides ideas on how to promote such conflicts. One idea is to bring new people into a current situation, which may be a problem. New people bring the possibility of a new perspective and ask questions. Fresh eyes may help solve a problem or find a better way to do something. Creating competition is another idea that could lead to getting ahead of schedule or closing a project under budget. Dysfunctional conflict, on the other hand, can be problematic (Massey & Dawes, 2004). Dysfunctional conflict is defined as unhealthy and includes bad behaviors, dissatisfaction, and poor performance for individuals and groups alike (De Dreu & Weingart, 2003). This type of conflict distracts people from the true goal and ultimately affects everyone. Examples of dysfunctional conflict could be withholding information from someone or a group, distorting the truth or facts, being hostile, and distrusting others. Can leadership teams who are conflicting make high-quality decisions as a team? Amason (1996) argues that while conflict helps decision quality within a group, this same conflict disrupts the group. Leadership teams should try to balance both types of conflict to make the right decisions and to be able to work together effectively in the future.

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Fig. 6.1  Five conflict modes. (Adapter from Thomas, 1976, p. 922) Table 6.2  Conflict-handling modes Mode Competing

Organization example One employee is trying to use the same resource while another employee needs to finish their project first and on time Collaborating Two employees who need the same resource communicate project needs to complete both projects on time Compromising Two employees communicating project resource needs and one employee accepting their project can wait and be late in the schedule until the resource is free Avoiding One employee is not willing to communicate project resource needs and lets their project be late without resource communication Accommodating One employee is willing to let the resource work on other projects until there is time for their project. Will just let their project be late

6.2.2 Conflict Modes Conflict is all around us in our personal lives and the workplace. It can range from a perceived slight walking into work in the morning or a comment taken the wrong way in a big meeting. Thomas (1992) breaks conflict handling into five modes: competing, collaborating, compromising, avoiding, and accommodating. A correlation exists between each conflict mode and assertiveness and cooperativeness (Fig. 6.1). Each conflict mode is used daily within a business. Table 6.2 explains an organizational example of each conflict handling mode. Competing is defined as pursuing your interests over somebody else’s interests. You could be trying to win or stand up for something you believe. Competing can

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also be described as assertive and uncooperative. At times, managers must negotiate to use the same human resource on a project. People can only do one task at a time, so the manager who gets the resource gets their project on time. The other manager may have the project go late without the immediate use of the resource. Collaborating can be described as assertive, cooperative, and positive. When two people collaborate, they work together to find a solution to satisfy both needs. In business, both parties may take a deep dive into a disagreement to see both sides of the topic and then work with each other for an acceptable solution. Two managers would communicate with each other on project needs and timelines. They can then find a solution that fits both their project needs and timelines. Compromising is the middle of the five modes of conflict. The goal of a compromise is to find a fast and mutually acceptable solution for both parties. The main difference between compromising and collaborating is that compromising may not find a fully acceptable solution for each party. Compromising could be described as assertive and cooperative but is less so than collaborating. Compromising happens a lot in business, as it is often best to find a quick and middle-of-the-road solution instead of taking a long time to find a fully acceptable solution for all parties. Each party essentially gives something to be able to come to an agreement. Two managers needing the same resource for a project may communicate with each other and determine that one project is more important, and the resource starts there. The second project would not be a priority and would wait for the resource to be free again. The avoiding conflict mode is considered unassertive and uncooperative. Someone who uses this mode may remove themselves from a situation altogether or try to get around any potential conflict. Avoiding is not addressing the issue until a better time arises, or the issue might never be addressed. Two managers needing the same resource would not communicate needs here, and one manager would be without the resource it needs. This lets the project go late without any communication. Accommodating is the last mode of conflict. It is unassertive and cooperative. When people are accommodating, they are not considering their needs or concerns. Self-sacrifice is another way to describe someone being accommodating. If two managers are communicating project needs, one manager may willingly let the resource go knowing their project will go late.

6.3 Organizational Conflict Causes Culture  Handling conflict within an organization can be tricky due to internal politics, processes, and hierarchy. With many organizations being multicultural, another level of complexity is added. Individualistic cultures value direct and assertive conflict-­resolving methods (Holt & DeVore, 2005). The United States, Canada, Germany, Australia, and England are all considered individualistic cultures. This type of thinking could be aligned with a “me first” attitude as opposed to what is best for the group. Based on these conflict terms, individualistic cultures would use

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the problem-solving, compromising, and forcing types of resolution. Collectivistic cultures are found in China, Japan, Korea, the Middle East, and Mexico. These cultures are more focused on the group’s needs instead of one person. Smoothing and compromising are the preferred methods of conflict resolution so as not to destroy any relationships. This especially holds true in cultures in Asia as relationship building takes time and must be done before any business arrangement. Withdrawing is another method of conflict resolution and is sometimes used to leave an embarrassing situation without embarrassing one particular party. Gender Gender can also play a part in organizational conflict (Holt & DeVore, 2005). In the United States, males are more direct and take on a power position based on social norms and upbringing. Females, on the other hand, take a more collectivist approach and want to care for others. Males take on the forcing and problem-­solving methods for conflict resolution. Females tend to use smoothing, withdrawing, and compromising approaches.

6.4 Organization Negotiation Negotiations frequently happen in organizations. Teams negotiate for resources and production time. Workers negotiate with other workers, vendors, and customers. Being able to negotiate with others can help you find win-win situations, get projects done, and meet company goals. What kind of factors influence how successful a negotiation is? How does group size affect negotiations? How are negotiations used in promotion and compensation? Various factors impact the negotiation processes to contribute the success or failure. Negotiation within an organization can be slightly different when it is a one-on-­ one conversation compared to negotiating within a group. Some important negotiations employees will experience include career advancement and compensation.

6.4.1 Negotiation Impact Factors Trust, emotions, power, culture, biases, and personality all come into play during negotiations. These factors can be positive or negative when trying to reach an outcome. Trust Arkes et al. (1991) mention that trust affects all negotiation parts. Each question-­ and-­answer moment provides information to both parties but is an avenue to gain or lose trust. If there is low trust in a negotiation, negotiators will fall back and focus only on themselves and their needs. Low trust can hurt future relationships and not

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find a win-win solution. John (2016) mentions that negotiators tend to lie during negotiations when there is a motive. This works counterintuitively to making a deal. The apparent thought when concerned about lying during negotiations is to be able to catch the liar. However, John (2016) provided provides a pre-emptive approach. In the scenario where your counterpart shares sensitive information, do the same, and it will help build trust between the two of you. People will lie less when they trust the other person. Asking direct questions can also help avoid lies. And stay persistent with direct questions even when someone may try dodging them. Having a casual conversational tone will also reduce the likelihood of someone lying. A perceived slight or inadvertently questioning the integrity of others could cancel the deal. Emotions Emotions play a large part in negotiations. Positive or negative affect, anger, guilt, regret, anxiety, and worry affect each party in the negotiation. Van Kleef and Côté (2018) argue that negotiators who experience positive affect are more cooperative during negotiations. In a dispute setting specifically, negotiators displaying positivity were more likely to find an agreement that suited both parties (Kopelman et al., 2006). In addition, Kopelman et al. (2006) found in an ultimatum-type negotiation, positive emotions used by the negotiators helped their opponents accept the deal at hand and close negotiations. Negotiators who experience negative affect, such as anger, become more competitive. A competitive nature may steer the negotiation focus away from finding the best result for all parties. Emotions such as guilt or anxiety may fuel a more cooperative negotiator because they may feel they owe the other parties something or must “make it right.” Nonverbal Cues During negotiations, first impressions can mean a lot. People rely more on nonverbal information when forming initial impressions (Argyle, 2013). Handshakes are a nonverbal signal of cooperation and tend to put people at ease. Schroeder et  al. (2014) argue that handshakes between parties during the initial meeting can help increase cooperative behaviors, gain higher agreeable outcomes, and show people lie less to their counterparts. Culture Culture can play an integral role in negotiations within the business and with customers in the United States and globally. Some cultures prefer a more direct and to-the-point negotiation where no time is wasted. Other customers, however, may want a slower negotiation and possibly a good relationship before any negotiations. Understanding who you are negotiating with and their cultural norms can be the difference between coming to an agreement and losing a potential business partnership. Meyer (2015) specifies several cultural examples of trust and dishonesty during negotiations. Its common practice in America to end a meeting while summing up action items or tasks that people have agreed to do. However, negotiating with the Middle East may be an insult as they’ve already been committed to such actions

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previously in the discussion. To repeat, what they’ve already agreed to could end the deal with a “no.” The Chinese culture warrants a stronger relationship between two parties before trust can happen and before a deal can work out. Cultures from Asia and Africa require a connection to be made at a more personal level before a business relationship. Building the connection takes time and involves learning about one another outside the business walls. Cultural differences are evident in the negotiations. When comparing two cultures during negotiations, a bias toward cooperation is found in collective cultures. Comparing American to Taiwanese negotiation teams, the American group sought higher amounts and gained higher agreement and gains. The Taiwanese team was less focused on the economic impact and more on forming a partnership with those they were negotiating with (Gelfand et  al., 2005). However, when comparing American culture to Chinese or Qatari cultures, the Americans were more cooperative and less competitive (Aslani et al., 2016). Aslani et al. (2016) found that the Qatari and Chinese negotiations were more competitive, leading to lower amounts. The Americans were more cooperative, and negotiations led to higher amounts. The cooperativeness was based on more information sharing during negotiations than compared with the Qataris or Chinese. Gender Gender in various cultures also affects negotiations. Biases often come into play without people understanding they are biased on a topic. Kray et al. (2002) argue that women perform badly in negotiations because of the stereotypical roles they are perceived to have. Shan et al. (2019) argue that a woman’s negotiation performance is based on the cultural values and practices of the society they currently live in. Men are more likely to outperform women when the culture they are in values individualism, being assertive, and does not value collectivism. Mazei et al. (2021) go a step further and point out that men rank their masculinity and social status based on outcomes from a negotiation. If a man wins a negotiation, this reaffirms his status in society. However, if a man loses a negotiation or doesn’t get the wanted outcome, he may lose his status in society. With so much at stake, a man may be pushed to be unethical during the negotiation, which in turn hurts all parties involved. Personality Personality plays a part in negotiations, and employees must understand how they are perceived when working with others. Open and blatant disagreements in America may offend certain people. However, other cultures, Germany, Denmark, and the Netherlands, see this as a positive. Meyer (2015) mentioned Russia. Open disagreement is an invitation to a discussion, which is a good start to negotiations. In Mexico, though, saying you disagree with another person’s position, the negotiation may very well end. Arkes et al. (1991) review social motives people in social interactions such as negotiations have. It really boils down to the type of person you are. People who place their own interests higher than others may focus on what they gain versus the other person as opposed to what both parties gain. Competitive people could very well focus on maximizing the difference between their gains and the counterpart’s

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gains. The difference is what is important at the end. Someone may be motivated by their needs and others’ needs and then puts focus on both during the negotiation. Power The power within a negotiation affects its outcome. Power in a negotiation comes in various forms, one being the best alternative to the negotiated agreement (BATNA). When a negotiator has the knowledge of their BATNA, it helps them make decisions in real-time on what and what not to concede. BATNA helps the negotiator make any tradeoffs (Pinkley, 1995). In organizations, when negotiating for resources or changing priorities, it is best to know the tradeoffs in each situation. When someone can apply numbers or dollars to the decision-making, it can make the decisions easier and easier to explain to others.

6.4.2 Level of Negotiation Dyadic With a group of two people, or a dyadic group, one person’s feelings or attitude can affect the other person. One negotiator may pick up on the emotions of another negotiator and adjust to meet the needs of the negotiation. Van Kleef and Côté (2018) point out that participants who received angry communication from their opponent would then adjust and concede a lot to keep the negotiation going. Participants who received positive messages were more likely to negotiate for more or give up less, because they were not afraid the negotiation would break down. At the dyadic level, emotions, specifically anger, can greatly impact negotiations. Large Group Large group negotiations bring multiple people into the mix. Oftentimes, these conversations happen during meetings. Van Kleef and Côté (2018) reference a group of studies to come to two conclusions regarding large-group negotiations. Emotions can be contagious, starting from one person and traveling to the next. Positive emotions from one person can gain traction, increase cooperation, and reduce conflict in the group. And anger expressions pointed at one person may persuade this person to act similarly to the group in order not to be singled out further. However, negative attitudes can be contagious and flow from one person to the next as well.

6.4.3 Career Advancement and Compensation Two common topics that employees negotiate are career advancement and compensation. These topics can be uncomfortable to talk about with a superior and usually bring on stress and anxiety for several employees. Bowles et al. (2019) argue that women are at a disadvantage compared to men during salary and wage negotiations.

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Negotiating strategies such as asking, bending, and shaping are described as tools for women during negotiations. The tool choice impacts negotiations for women in their pay and leadership worlds. Asking is described as specifically requesting career advancement as a direct line of communication between the employee and employer. This could be applying and interviewing for an open position within the organization. Bending is defined as going slightly beyond the norm of organizational practices. An example of bending would be applied to the open position but negotiating a change in standard hours or maybe working from home a couple of days a week. Shaping is considered as an employee’s proposal, which would then change organizational norms. A shaping example could be applied to an open job, but negotiating a 100% work remotely role certainly changes organizational norms.

6.5 Summary Communication, conflict, and negotiation are prevalent in the daily lives of employees of an organization. There are various types of verbal and nonverbal communication forms. How you communicate your message, both verbally and nonverbally, can affect how the message is received. Communication happens at different levels in business, such as intrapersonal, dyadic, team, and as an entire organization. Traditional media types are still used during the workday, and some of these have been improved. However, some new technologies have become important and need effective strategies to gain maximum value. No matter what type of communication or media to use, there are still barriers to be wary of. Navigating these barriers while using the right communication method can confirm your message is received the way you intended it. Amazon seemed to not have an open line of communication between employees and management. Workers became more vocal about their problems and concerns. Had Amazon had good communication methods, the employee concerns may not have been made public and been able to be worked out internally. Conflict is something all employees deal with, and it is important to understand the differences between functional and dysfunctional conflicts. This is important within an organization because organizations are made up of many cultures, personalities, and situations. The conflict between Amazon and its’ workers was dysfunctional as valid concerns were brought to light by the media. Amazon pushed its’ workforce hard with long hours and minimal bathroom breaks. An example of functional conflict would have been Amazon's management hearing these concerns and working with employees for an acceptable solution resulting in a stronger and more attractive workplace for current and new workers. Negotiations happen every day, all day, within a business. Along with cultures, personalities, and various situations, emotions, trust, and biases, all affect negotiations. It is important to understand how each factor can affect the outcome. Negotiations happen at the dyadic, large group, and employee-employer levels. Resources, salaries, and benefits might be at stake. Understanding how communication, conflict, and negotiation affect organizations and their’ members can help when dealing with difficult situations to move forward to a positive outcome. And

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understanding how to navigate these waters effectively can help leaders keep the business going in the right direction. During the problems at Amazon, it looked like the Amazon leadership team was not negotiating effectively with their employees. Positive and good-faith negotiations could have taken care of the issues right away.

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Chapter 7

Leadership Lu Zuo

Abbreviation LMX Leader-Member Exchange Yu and the Battle of Julu Yu Xiang was a prominent military and political leader in ancient China. He was born in 232 B.C., when the first unified, power-centralized Chinese country, the Qin dynasty, started to fall. During that period, the country was experiencing a number of peasant rebellions due to the Qin emperor’s tyranny. Yu was one of the major rebel leaders against Qin. After successfully overthrowing Qin, occupying the Qin capital, and executing the emperor, he proclaimed himself “Hegemon-King of Western Chu.” In the Records of the Grand Historian, Yu had double pupils in his eyes and possessed unusual physical strength, making people see him as an extraordinary person. As a descendant of a royal family of the Chu state (a small state conquered by Qin), he hoped to take revenge on the Qin emperor and re-establish the Chu state. He believed that he was the only person who would be able to replace the Qin emperor and rule the country. In 207 BC, Yu led a 20,000 army to cross HuangHe river and attack 300,000 Qin forces at Julu. After crossing the river, he asked his army to sink boats and only carry three-day food. Because there were no food supplies or any chance of escape, his army had to make full efforts to fight to survive. Although the Qin army heavily outnumbered Yu’s army, the army’s strong desire to survive enabled them to get a great victory. After the victory, he killed the 200,000 surrendered Qin army. Despite the Qin’s fertile land and strategic location, he did not want to remain at Qin or become an emperor of the country. Instead, he divided the country into several states and only took the old territory of the Chu state. L. Zuo (*) Herberger Business School , St Cloud State University, St Cloud, MN, USA e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 N. Hou et al. (eds.), Organizational Behavior, https://doi.org/10.1007/978-3-031-31356-1_7

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How do you evaluate Yu as a leader? Was he charismatic, transformational, ethical, or destructive? Have you worked with a leader like him? What emerged Yu as a leader? What characteristics make him a leader? Was he an effective leader? Does culture impact his emergence as a leader? Did he have any culturally endorsed leadership attributes? What influence tactics did Yu use in influencing his followers?

7.1 Early Leadership Theories Since the Industrial Revolution in the late 1800s, the study of leadership has become more rigorous. The traditional leadership theories and research can be divided into three approaches, which include the trait approach, the behavioral approach, and the contingency approach. Each approach uniquely contributes to our understanding of leadership and its underlying process.

7.1.1 The Trait Approach Dominant from the last 1800s to the mid-1940s, the trait approach that rests on the idea that leaders are born was one of the earliest theories of leadership. The major assumption underlying the trait theories is that people born with certain traits and characteristics are more likely to emerge as leaders and/or perform as effective leaders. For example, individuals in high-level positions may possess more leadership traits than those who are in lower-level positions. Consequently, the trait theories emphasize on identifying who would be effective leaders and attempt to identify individual traits and characteristics that can differentiate leaders from followers. Key theories such as implicit leadership theories (Offermann et  al., 1994; Lord et al., 2020) and evolutionary psychology perspective (van Vugt & Ronay, 2014) are applied to depict the mechanisms underlying the trait approach to leadership. Although some leadership traits (e.g., physical attributes and personality traits) are identified, the trait approach seems not sufficient for predicting leadership effectiveness – for example, no single individual trait or characteristic can be a solo measure of leadership effectiveness and there are often weak and inconsistent findings. This section will discuss the roles of physical height, facial appearance, and personality in the leadership processes. 7.1.1.1 Physical Height Taller individuals are “greater.” Tall stature is a metaphor for masculinity and power. A social perceptual bias is that as taller people are better nourished in childhood, they are more capable and intelligent, allowing them to gain a more successful career and even emerge as a leader. Think about the average height for men in the

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United States versus for the US presidents. Research findings reveal that height is a preferred leadership characteristic in the U.S. presidential elections – for example, taller candidates are more likely to receive more popular votes (Stulp et al., 2013). All presidents in the past 40  years (see Table  7.1) are taller than the average American man (5 ft 9 in/180 cm). From an evolutionary perspective, taller individuals are more leader-like, because they are seen as physically stronger, healthier, and more energetic (Blaker et  al., 2013). A meta-analytic review by Judge and Cable (2004) has demonstrated that taller people have more ascendancy into leadership as height is a valuable thing esteemed by other people. As leadership positions were occupied by males in ancestral societies, the positive association between physical height and leadership seems more obvious for men than for women. Taller men are perceived as more charismatic by their followers, while no such relationship was found for female leaders (Hamstra, 2014). 7.1.1.2 Facial Appearance Facial appearance considerably matters in the people we select as leaders (Antonakis & Eubanks, 2017). In Fig. 7.1, who is more competent and more likely to win an election? Are you choosing the left (face A) in the first pair and the right (face B) in Table 7.1  Height of US presidents No. 46 45 44 43 42 41 40

President Joe Biden Donald Trump Barack Obama George W. Bush Bill Clinton George H. W. Bush Ronald Reagan

Height (in) 5 ft 11.5 in 6 ft 3 in 6 ft 1 in 5 ft 11.5 in 6 ft 2 in 6 ft 2 in 6 ft 1 in

Fig. 7.1  Facial appearance and voting. (Olivola & Todorov, 2010)

Height (cm) 182 cm 191 cm 185 cm 182 cm 188 cm 188 cm 185 cm

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the second pair? Research indicates that these faces perceived as more attractive and less baby faced increase their perceived competence and the likelihood of winning an election (Olivola & Todorov, 2010). As accurate information about candidates’ competence, intelligence, and leadership are not often available, we derive inferences about their traits and characteristics from facial cues, which is so-called face-­ ism (Olivola et al., 2014). The underlying mechanism is that having certain facial features (e.g., masculine-looking) considered prototypical leadership characteristics makes people engage in associated self-reinforcing behaviors and in turn gain obedience and trust from others (Antonakis & Eubanks, 2017). The link between facial appearance and success has been well established across domains. For example, appearance-based judgments about political candidates’ personality traits impact their electoral success (Olivola & Todorov, 2010). This facial effect on voting has been found across countries, such as the United States, Australia, France, Germany, Japan, and so forth (Poutvaara, 2014). In organizational settings, people with certain facial features are more likely to get selected as a business leader (Stoker et  al., 2016), command higher salaries (Graham et  al., 2017), and achieve higher firm performance (Wong et  al., 2011). In the military hierarchy, dominant-looking men are more likely to advance to higher ranks (Mazur et al., 1984). Research also examined the effect of specific facial features on leadership outcomes. For instance, people with symmetrical faces are more extraverted (Pound et al., 2007) and intelligent (Banks et al., 2010), and these personality traits allow them to emerge as a leader (Ensari et al., 2011; Ilies et al., 2004). Men with greater facial width-to-height ratios have higher negotiation performance (Haselhuhn et al., 2014). Recently, mouth width is considered a critical facial feature that predicts leadership selection and success (Re & Rule, 2016). Facial cues of height can also predict perceived leadership capability. Re et al. (2013) found that faces appearing to belong to taller people could be rated as better leaders (see Fig. 7.2).

Fig. 7.2  Facial cues of height and leadership perceptions. Who is taller? Looks like a leader?. (Re et al., 2013)

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Despite the prototypical faces of leaders across contexts, different facial features are preferable in different contexts (Little, 2014; Van Vugt & Grabo, 2015). As suggested by Van Vugt and Grabo (2015), older-looking faces make people stereotypically fit into the leadership position in the knowledge domains. Whereas wartime leaders are expected to have masculine-looking faces, feminine faces are more favored for peacetime leaders (Van Vugt & Grabo, 2015) (Figs. 7.1 and 7.2). 7.1.1.3 Personality Personality is a set of stable psychological characteristics that make people unique. A number of personality traits, such as intelligence (e.g., cognitive ability, emotional intelligence, and political skill) and self-concept traits (e.g., self-confidence, self-efficacy, and core self-evaluation), make people emergent or effective leaders (Badura et al., 2022; Judge et al., 2002). To group many different personality traits into a list of personality dimensions, a five-factor model (often termed the Big Five) was developed. The Big Five dimensions include neuroticism, extraversion, openness to experience, agreeableness, and conscientiousness (see Chap. 2). • Neuroticism. A tendency to be anxious, insecure, worried, and emotional. • Extraversion. A tendency to be outgoing, talkative, energetic, sociable, and assertive. • Openness to experience. A tendency to be intellectual, imaginative, broad-­ minded, creative, and curious. • Agreeableness. A tendency to be trustful, cooperative, warm, and sympathetic. • Conscientiousness. A tendency to be dependable, responsible, persistent, thorough, and achievement oriented. The Big Five traits are relevant to leadership (Badura et al., 2022). Findings of a meta-analytic review indicated that neuroticism, extraversion, openness to experience, and conscientiousness predicted leadership (Judge et al., 2002). Particularly, extraversion was the most consistent correlate of leadership emergence and leadership effectiveness across all study settings (Judge et al., 2002). The Dark Triad represents a taxonomy of dark personality traits that have also been extensively studied in leadership research. The so-called Dark Triad includes narcissism, Machiavellianism, and psychopathy (LeBreton et al., 2018). • Narcissism. A self-centered perspective with “(a) feelings of superiority by an inflated or grandiose sense of self, (b) have a dysfunctional need for excessive attention and admiration, (c) have a propensity for engaging in exploitive acts or behaviors, and (d) lack empathy, tending toward callousness.” • Machiavellianism. A tendency toward manipulation, with “(a) lack of empathy, (b) lower levels of affect, (c) a focus on pursuing one’s own goals at the expense of others, and (d) an aberrant view of morality.”

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• Psychopathy. A constellation of “interpersonal manipulation (e.g., grandiosity, lying, superficial charm); callous affect (e.g., lack of empathy, lack of remorse); erratic lifestyle (e.g., impulsivity, irresponsibility, sensation seeking); and criminal tendencies (e.g., antisocial or counterproductive behavior).” The dark triad traits enable people to emerge as leaders; however, they may not perform effectively on the leadership position. For example, as narcissistic people are skilled at making positive first impressions (e.g., being extraverted and having charming facial expressions), they are more likely to emerge as leaders (see Grijalva et al., 2015 for a meta-analysis). Despite the initial attractiveness, they have difficulty maintaining the positive relationship and are rated more negatively over time as they are arrogant, entitled, and exploitative (Grijalva et al., 2015). Psychopathy also demonstrated a positive relationship with leadership emergence while having a negative relationship with leadership effectiveness (see Landay et  al., 2019 for a meta-analysis). To clarify the “nature-nurture” issue, leadership researchers look for a link between genetics and human development. Using identical twins who share 100% of their genetic background and fraternal twins who share only 50% of their genetic background, empirical studies found that about 30% of the variance of leadership role occupancy was accounted for by genetic factors/heritability (Arvey et al., 2006, 2007). The genetic basis for leadership can be explained by the genetic influences on the chemical (e.g., hormones), physical (e.g., height), and psychological processes (e.g., personality) that, in turn, affect leadership. More recent research focuses on the effect of a specific gene on leadership. For instance, leadership role occupancy was associated with rs4950 (a single-nucleotide polymorphism) residing on CHRNB3 (a neuronal acetylcholine receptor gene; De Neve et al., 2013). The DAT1 10-repeat (a dopamine transporter gene) impacts leadership role occupancy by determining proactive personality and rule-breaking (Li et al., 2015).

7.1.2 The Behavioral Approach During the mid-1940 to early 1970s, the behavioral approach became the focus due to the need for training and developing effective leaders in the World War II. Unlike the trait approach emphasizing that leaders are born with innate traits, the behavioral approach rests on the idea that leaders can be made to perform effective leadership behaviors. Consequently, the behavioral approach focuses on what an effective leader does and attempts to identify the unique behaviors displayed by effective leaders. Among the important leadership behaviors identified, task- and relationship-­ oriented behaviors were established as primary leadership behaviors in the behavioral theories (Table 7.2). This section will introduce three main behavioral theories: Kurt Lewin’s leadership styles, the Ohio State Studies, and the University of Michigan Studies.

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Table 7.2  Summary of key behavioral theories Key behavioral theories Kurt Lewin’s leadership styles Ohio state studies University of Michigan Studies

Task oriented Autocratic Initiating structure Job centered

Relationship oriented Democratic Consideration Employee centered

7.1.2.1 Kurt Lewin’s Leadership Styles The early work of the behavioral approach to leadership was conducted by Kurt Lewin and his colleagues (Lewin & Lippitt, 1938; Lewin et al., 1939). They identified three basic leadership styles, which include autocratic, democratic, and laissez-faire. • Autocratic (task-oriented). Centralize authority (e.g., derive power from position and make decisions alone). • Democratic (relationship-oriented). Delegate authority (e.g., encourage followers to participate in decision making, rely on followers’ knowledge and expertise, and expect respect from followers). • Laissez-faire. Provide no direction and do not get followers involved. Autocratic leaders demand obedience from followers. They make decisions themselves without consulting with followers and provide followers with clear expectations regarding the goals, timelines, and methods of the tasks. Followers cannot make or change any decision in the task completion. Autocratic leadership style is effective when only the leader possesses the knowledge, skills, and expertise necessary for completing the task and/or when the team has limited time to complete tasks. However, solely relying on the leader’s expertise, the team may not be able to produce creative ideas. As opposed to autocratic leadership, democratic leaders encourage participation and rely on followers’ expertise. Democratic leadership is effective when followers have expertise. Teams with democratic leaders can perform effectively even when the leaders are absent. Although the teams can creatively resolve problems and finish tasks, democratic leadership would be problematic when the teams produce a large number of ideas but have no way to reach a consensus. Unlike autocratic leaders or democratic leaders, laissez-faire leaders do not exert effort to get work done or to cooperate with followers. Teams with laissez-faire leaders may not be effective or cohesive. 7.1.2.2 The Ohio State Studies One of the most influential behavioral theories is the Ohio State University Studies. The Ohio State research group developed the Leader Behavior Description Questionnaire (LBDQ) and identified two wide-ranging categories of leadership behavior (i.e., task- and relationship-related behaviors, later called initiating structure and consideration).

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• Initiating structure (task-oriented). Organize and define followers’ work activities toward goal attainment. • Consideration (relationship-oriented). Respect followers’ ideas, establishing mutual trust, and caring about followers’ needs. A meta-analysis by Judge et al. (2004) suggests that initiating structure and consideration have positive relationships with leadership outcomes. Specifically, initiating structure was positively associated with leader performance and group-organization performance, and consideration was positively associated with follower satisfaction (leader satisfaction and job satisfaction), motivation, and leader effectiveness. Lambert et  al. (2012) found that excess levels of initiating structure led to a decline in attitudinal outcomes (i.e., employees’ trust in the supervisor, job satisfaction, and affective organizational commitment) and excess levels of consideration triggered an increase in attitudinal outcomes. Another interesting result from Lambert et  al. was that for both forms of leadership behaviors, high levels of absolute fit between leader behaviors needed and received were positively associated with attitudinal outcomes. As initiating structure and consideration behaviors are independent of one another, it is likely that a leader can demonstrate a high level of both behaviors or a low level of both behaviors in addition to displaying high initiating structure and low consideration or low initiating structure and high consideration. 7.1.2.3 The University of Michigan Studies Another well-known series of leadership studies was conducted at the University of Michigan. The focus of the Michigan studies was to determine the principles and methods of leadership that led to greater productivity and higher job satisfaction. The Michigan researchers established two types of leadership behaviors: employee-­ centered and job-centered. Unlike initiating structure and consideration, the Michigan researchers considered job-focused and employee-focused leadership behaviors to be distinct from one another. • Employee-focused. Care about employees’ human needs by providing support for employees and facilitating positive interaction among employees. • Job-focused. Guide work activities toward task accomplishment by focusing on reaching task goals and facilitating task structure.

7.1.3 The Contingency Approach As the trait approach and behavioral approach failed to identify universal leadership traits and behaviors predicting leadership effectiveness, a more comprehensive approach to understanding leadership was required since early 1960s. More complex models that involve situational contingencies were taken into consideration.

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The contingency approach believes that the effectiveness of leader behavior is contingent upon organizational situations. That is, leadership effectiveness is determined by the fit between leader behaviors and specific situations (see Chap. 2 for people-environment fit). Some leader behaviors that work in one situation may not work in another situation. To be effective, leaders cannot use one leadership style in all situations. As situations change, different leadership styles become appropriate. This section will discuss three main contingency theories: Hersey and Blanchard’s situational leadership theory, Fiedler’s contingency model, and path-goal theory. 7.1.3.1 Hersey and Blanchard’s Situational Leadership Theory The situational leadership theory was proposed by Hersey and Blanchard. As a contingency theory, this theory suggests that there is no one “best” leadership style. Based on two dimensions – task and relationship behaviors – the leadership styles were divided into four categories: telling, selling, participating, and delegating. • Telling. High task and low relationship (e.g., providing clear objectives and instructions about task accomplishment). • Selling. High task and high relationship (e.g., providing task instruction and personal support). • Participating. Low task and high relationship (e.g., encouraging participation and relying on employees to complete tasks). • Delegating. Low task and low relationship (e.g., providing no/little direction and support). This theory also identified employees’ readiness – the ability and willingness to perform a task – as the most important element of organizational situation. • • • •

Low readiness: Unable and unwilling. Moderate readiness: Unable but willing. High readiness: Able but unwilling. Very high readiness: Able and willing.

The tenet of the situational leadership theory is that employees with different readiness levels should match different leadership styles (Fig. 7.3). Leaders should change leadership styles when working with employees with different readiness. In other word, to be effective, leaders should be able to diagnose employees’ readiness and adopt the leadership style that is appropriate for employees’ readiness level. • Telling is effective when employees have low readiness. As employees do not have skills or expertise to perform on a task, leaders can provide clear instructions about how to complete the tasks. • Selling is effective when employees have moderate readiness. Although employees do not have ability, they are willing to learn. Thus, providing directions and clarifying how the tasks should be performed can help them improve.

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Fig. 7.3 Hersey and Blanchard’s Situational Leadership Theory. (Adapted from Hersey et al., 1979)

• Participating is effective when employees have high readiness. When employees have necessary skills and expertise but are unwilling to contribute, leaders can encourage them to participate. • Delegating is effective when employees have very high readiness. When employees have very high levels of ability, expertise, and willingness to accept responsibility, leaders can delegate them sufficient authority. 7.1.3.2 Fiedler’s Contingency Model Fiedler’s contingency model is a tool that allows leaders to diagnose leadership styles and organizational situation. As the effectiveness of leadership is determined by how well leadership styles match organizational situation, an effective leader should be able to change leadership styles to match specific situation. In Fiedler’s contingency model, leadership styles are divided into two categories: task-­motivated and relationship-motivated. As Fiedler believed that how people evaluate their least-­ preferred coworker determines their priorities toward either accomplishing tasks or

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establishing relationships, the leadership styles are measured by the least preferred coworker (LPC) scale. • Task-motivated (low LPC). Focus on the task first, evaluate employees based on their competence and performance, and feel comfortable with details and with routine events. • Relationship-motivated (high LPC). Focus on people first and social interactions, evaluate employees based on their loyalty, and care for employees’ feelings and needs. Fiedler also identified three situational factors, which include the relationship between the leader and the followers, the amount of structure of the task, and the position power of the leader. • Leader-member relations (most important). The team with high leader-member relations is cohesive and has little respect or support from the leader. • The amount of task structure. A highly structured task has clear goals and procedures. • Leader position power. The leader has formal power to hire, fire, reward, and punish employees (Fig. 7.4). In a high-control situation, task-motivated leaders are more effective. Leaders who have good relationships with their members do not have to consider relationships or conflicts too much. Instead, they spend time providing the teams with resources necessary for task accomplishment, taking care of details, and helping followers perform on tasks. However, relationship-motivated leaders may feel that they have nothing to do as relationship is not the focus of the teams. In a moderate-control situation, the teams are not cohesive, or the tasks are unclear. This makes the situations ambiguous or uncertain and members feel it hard

Fig. 7.4  Fiedler’s Contingency Model. (Built based on Fiedler, 1971)

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to complete tasks. In these circumstances, the relationship-motivated leaders may be more effective, because they encourage member participation and focus on addressing task and relationship conflicts. However, task-motivated leaders in the moderate-control situation may perform poorly, because they may simply try to complete the task but ignore task and relationship conflicts, likely generating more conflicts and troubles. In a low-control situation where the teams have low cohesion, do not have task structure, and do not have strong position power, task-motivated leaders who make decisions without much concern for followers may be more effective. Although team performance may not be high and followers may not be satisfied, the leaders can get some work done. However, in the low-control situation, relationship-­ motivated leaders cannot complete tasks or address relationship conflicts. 7.1.3.3 Path-Goal Theory The path-goal theory proposes that the role of leaders is to increase follower motivation to accomplish goals (follower satisfaction, productivity, and rewards) by clarifying paths necessary for task completion to the rewards and matching followers’ needs to the rewards. For example, the leaders define goals, procedures, and methods of work activities that help followers attain task accomplishment and organizational rewards that followers value and desire. As a contingency theory, the path-goal theory includes leadership styles and situational contingencies (follower characteristics and work environment). Four leadership styles are identified in the path-goal theory, which include supportive leadership, directive leadership, participative leadership, and achievement-oriented leadership. • Supportive leadership. Care for followers’ personal needs and desires. • Directive leadership. Provide clear objectives and instructions about task completion. • Participative leadership. Encourage participation. • Achievement-oriented leadership. Set clear goals and helps employees achieve high performance and improvement. The path-goal theory also identified two categories of situational contingencies, which include follower characteristics and work environment. The interaction between the leadership styles and situational contingencies leads to goal attainment (Fig. 7.5). • Follower characteristics. Followers’ knowledge, skills, expertise, and motivation. • Work environment. Task clarity, organizational structure, and the work team itself.

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Fig. 7.5  Path-goal theory

7.2 New Paradigm for Leadership Since the 1970s, a new paradigm for leadership has emerged. The new paradigm focuses on providing vision, inspiring followers, and maintaining emotional bonds with followers that go beyond setting clear goals, providing explicit instructions, organizing resources, and controlling outcomes. The section will discuss several new leadership theories.

7.2.1 Leader-Member Exchange (LMX) Leader-member exchange (LMX) theory originated from the Vertical Dyad Linkage Model introduced by Dansereau and colleagues during the 1970s (Dansereau et al., 1975). Unlike other traditional leadership theories that assume leaders developed similar relationships with all followers, LMX focuses on dyadic exchange relationships between a leader and each follower aimed at attaining mutual goals (Graen & Uhl-Bien, 1995; Liden et al., 1997). Specifically, the leader establishes unique, one-­ on-­one relationships with followers through a process of exchanging resources, and the quality of each exchange relationship varies. Some followers have low-quality LMX (out-group relationships) based primarily on formal job contract, while the others have high-quality LMX (in-group relationships) characterized by high mutual respect, trust, loyalty, and support. LMX quality is determined by follower characteristics (e.g., personality traits, implicit leadership theories, cognitive style, and self-efficacy), leader characteristics (e.g., personality traits and influence tactics), interactional variables (e.g., leader-follower demographic similarity, personality similarity, and liking), and contextual variables (e.g., leader workload; see Martin et al., 2010 for a review). A considerable amount of research has consistently demonstrated that high LMX quality leads to a wide range of positive follower attitudinal and behavioral

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consequences, such as high job satisfaction, well-being, and work performance (e.g., Dulebohn et al., 2012; Erdogan & Bauer, 2014; Ilies et al., 2007; Gerstner & Day, 1997; Martin et al., 2010, 2016). High LMX quality perceived by followers was also related to the dyad- and organizational-level outcomes (e.g., perceived leader support, perceived transformational leadership, and perceived justice; see Martin et al., 2010 for a review). Although LMX is dyadic in nature, recent research efforts are dedicated to addressing LMX at the group level. When a leader treats each follower differently in a team setting, the effect of LMX on follower work outcomes is determined not only by the quality of the relationship with the leader but by the quality of the relationships between the leader and other followers of the team. Consequently, while high LMX quality relates to positive follower outcomes, it is unclear whether the LMX differentiation is beneficial or detrimental for group outcomes. Martin et  al. (2017) summarized that LMX differentiation can be assessed through three main properties, which include central tendency (i.e., the average or middle value of team members’ LMX quality assessed as team mean or median), variation (i.e., the degree of variation in team members’ LMX quality), and relative position (i.e., the relative position of a team member’s LMX quality to other team members). Three key theories, namely, organizational justice theory, social comparison theory, and social identity theory, are often utilized when examining the effect of LMX differentiation on individual and team outcomes (Martin et al., 2017). Martin et al. also found that based on the three theories, high relative LMX leads to better individual consequences (e.g., job satisfaction, well-being, and performance) and low LMX variance was related to better team outcomes (e.g., low team conflict and greater team potency). A more recent review by Buengeler et al. (2021) conceptualized LMX differentiation as LMX separation (disagreement or opposition regarding an opinion or position), LMX variety (distinctiveness in kind, source, or category), and LMX disparity (inequality in concentration of valued social assets or resources). In examining their group consequences, Buengeler et  al. found that while LMX separation and LMX disparity trigger negative group outcomes, LMX variety benefits groups.

7.2.2 Transformational Leadership Due to today’s dynamic business environment, organizations need leadership that inspires employees to achieve revolutionary change. Initially introduced by Downton (1973) and further developed by Burns (1978), transformational leadership is one of the most heavily researched leadership theories where leaders inspire followers beyond their immediate self-interests to achieve collective outcomes through idealized influence, inspirational motivation, intellectual stimulation, and individual consideration (Bass, 1985, 1999).

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• Idealized influence. Leaders have set an example to be followed. • Inspirational motivation. Leaders communicate a clear picture for the future to inspire and motivate employees. • Intellectual stimulation. Leaders encourage employees’ creativity and innovation. • Individual consideration. Leaders express genuine concern, support, and coaching for employees’ growth and development. Transformational leadership was positively associated with performance at the individual, team, and organizational levels (see Wang et  al., 2011 for a meta-­ analysis). The meta-analysis also indicates that transformational leadership has a stronger relationship with contextual performance than with task performance (Wang et al., 2011). Also, transformational leadership has a stronger relationship with follower satisfaction and self-report effort than superior-report leadership effectiveness and objective team performance. Charismatic leadership and transformational leadership are considered overlapping with one another. In recent years, the revised charismatic leadership theory appears to be closer to the transformational leadership theory. Despite this, there are some important differences. For example, although charisma is a necessary component of transformational leadership, charismatic leaders may not be often transformational (Bass, 1985). Charismatic leaders are seen as extraordinary by followers, while transformational leaders appear to inspire, empower, and develop followers, which may reduce attribution of charisma to the leader. Another difference between charismatic and transformational leadership lies in the leaders’ influence over followers. While charismatic leaders exhibit extraordinary competence to increase follower dependence on them, transformational leaders develop and empower followers to reduce their dependence. Unlike transformational leadership, transactional leadership motivates followers by appealing to their self-interests in the exchange relationship between the leader and followers (Bass, 1985, 1999). The exchange process induces followers’ compliance with leaders’ commands rather than arouse enthusiasm and commitment in followers. Transactional leader behaviors include through contingent reward, management by exception-active, management by exception-passive, and laissez-faire (Bass, 1985, 1999). Effective leaders should use a combination of transformational and transactional leadership (Bass, 1985). • Contingent reward. Leaders focus on the exchange relationships in which leaders provide followers with resources (e.g., support and benefits) in exchange for their work efforts. • Management by exception-active. Leaders monitor followers’ performance based on performance standards and take corrective actions if the followers fail to meet the standards. • Management by exception-passive. Leaders take corrective actions only when problems become severe. • Laissez-faire. Leaders avoid taking responsibilities.

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7.2.3 Ethical Leadership Drawing upon a social learning approach, Brown et al. (2005) define ethical leadership as “the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such conduct to followers through two-way communication, reinforcement, and decision-making” (p. 120). Ethical leadership is also studied within the social exchange framework in which followers reciprocate the fair treatment of ethical leaders through showing their ethical behaviors (Hansen et al., 2013). In addition to social learning and social exchange, ethical leadership is defined from a social influence perspective as the process of influencing group activities toward goal attainment in a way that is responsible for followers, organizations, and society (De Hoogh & Den Hartog, 2009). Other researchers define ethical leadership as not intending to harm others, respecting others’ right, and acting altruistically (Kanungo, 2001). Ethical leadership has overlaps with transformational and transactional leadership, but they are conceptually different. Like transformational leaders, ethical leaders care about followers and set a role model to be followed; however, ethical leaders focus on engaging in ethical behaviors that is not the focus of transformational leadership. In addition, while transformational leaders articulate an appealing future (inspirational motivation) and encourage creativity (intellectual stimulation), ethical leadership does not explicitly look at these. In comparing ethical leadership and transactional leadership, researchers found that they have different focus. Specifically, ethical leaders aim to shape followers’ ethical awareness and behaviors through using reward and punishment, while transactional leaders focus on getting followers to effectively perform on the job through exchanging desired rewards. Existing ethical leadership research pertains to antecedents, mechanisms, and outcomes and has been summarized in Den Hartog (2015). First, ethical leadership was related to a wide range of positive outcomes. For example, Den Hartog found that ethical leadership results in positive attitudes (e.g., less cynicism and more commitment), ethical behaviors (e.g., more OCB and less deviance), and more effort, and high performance. Second, Den Hartog discussed several psychological mechanisms linking ethical leaders to employee outcomes. For example, ethical leaders impact employees’ attitudinal, behavioral, and performance outcomes through improving employees’ ethical awareness and moral judgment, motivating employees to integrate ethical values into their identity, building trusting relationships and high LMX quality with employees, or developing a heightened sense of moral obligation in employees. Third, Den Hartog identified the individual-level (e.g., leaders’ Big Five, the Dark Triad, and moral identity) antecedents of ethical leadership and the circumstances (e.g., culture and follower characteristics) where ethical leadership takes place. In the recent years, several leadership theories have been proposed with a strong focus on ethical leadership. The theories include servant leadership (Greenleaf, 1970), authentic leadership (Avolio et  al., 2004), and spiritual leadership (Fry,

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2003). The leadership theories share some similarities but are conceptually different from one another. Greenleaf (1970) stated that “The servant-leader is servant first” (p. 13). Servant leadership is concerned with serving follower and stakeholders needs (e.g., helping followers grow, standing for ethical standards, and advocating for corporate social responsibility). Van Dierendonck (2011) identified six key characteristics of servant leadership, namely, empowering and developing people, humility, authenticity, interpersonal acceptance, providing direction, and stewardship. Because servant leaders are authentic and care about followers, the followers have high trust, loyalty, and satisfaction with the leaders. Servant leadership was also related to high organizational citizenship behaviors (OCB) and positive performance outcomes at the individual, team, and organizational levels (see Eva et al., 2019 for a review). • Empowering and developing people. Servant leaders empower followers and encourage their personal development. • Humility. Servant leaders put others’ interests first, seek others’ contribution, and provide support for others. • Authenticity. Servant leaders express themselves in an authentic way. • Interpersonal acceptance. Servant leaders can understand others’ feelings and accept others for who they are. • Providing direction. Servant leaders can provide direction and accountability. • Stewardship. Servant leaders are willing to go for service beyond self-interests. Authentic leaders are “deeply aware of how they think and behave and are perceived by others as being aware of their own and others’ values/moral perspectives, knowledge, and strengths” (Avolio et al., 2004, p. 802). The six key dimensions of authentic leadership are positive moral perspective, self-awareness, balanced processing, relational transparency, positive psychological capital, and authentic behavior (Avolio & Gardner, 2005). Due to their conceptual overlap with transformational leadership, researchers tested the relative performance of these leadership forms in explaining incremental variance beyond transformational leadership. Banks et al. (2016) suggested construct redundancy between authentic leadership and transformational leadership. Hoch et al. (2018) also found that authentic leadership and ethical leadership have low amounts of incremental variance beyond transformational leadership. • Positive moral perspective. Authentic leaders have high moral character and internalized positive virtues. • Self-awareness. Authentic leaders are aware of their strengths, knowledge, beliefs, and values. • Balanced processing. Authentic leaders listen to others and objectively consider and weigh different perspectives. • Relational transparency. Authentic leaders transparently share information with followers. • Positive psychological capital. Authentic leaders are positive and optimistic.

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• Authentic behavior. Authentic leaders engage in “actions that are guided by the leaders’ true self as reflected by core values, beliefs, thoughts, and feelings, as opposed to environmental contingencies or pressures from others” (Gardner et al., 2005, p. 347). The conceptual of spiritual leadership “is developed within an intrinsic motivation model that incorporates vision, hope/faith, and altruistic love” (Fry, 2003, p.  693). Spiritual leadership is defined as “comprising the values, attitudes, and behaviors that are necessary to intrinsically motivate one’s self and others so that they have a sense of spiritual survival through calling and membership” (Fry, 2003, p. 695). Like transformational leaders, spiritual leaders can improve work meaningfulness by linking it to employees’ values and self-identities. As spiritual leaders build meaningful relationships (e.g., mutual appreciation, trust, and care) among organizational members, they can effectively increase cooperation and facilitate higher performance. • Calling/transcendence of self. Spiritual leaders create a vision wherein organizational members believe that their life has meaning and makes a difference. • Membership/Fellowship. Spiritual leaders can establish a social/organizational culture whereby organizational members are connected and have a sense of being understood and appreciated.

7.2.4 Shared Leadership In the latter half of the twentieth century, leadership theories and research focused exclusively on single, formal leaders within a team or an organization. In the recent years, as leadership scholars argued for the importance of leadership responsibilities and roles shared among team members, considerable attention has been paid to shared leadership beyond the conventional leadership paradigm. Shared leadership is defined as “an emergent team property that results from the distribution of leadership influence across multiple team members” (Carson et al., 2007, p. 1218). The definition focused lateral leadership influence among team members. In teams with high levels of shared leadership example, most of team members can enact leadership influence over one another. Leadership can be shifted among members over time. As shared leadership “is a relational phenomenon involving mutual influence between team members” (Carson et al., 2007, p. 1221), social network theory provides a theoretical framework for understanding this relational influence structure in teams. An integrative framework by Zhu et al. (2018) identified formal team leader factors (e.g., transformational leadership) and team characteristics (e.g., team shared purpose, social support, and team personality compositions) as antecedents of shared leadership. With regard to outcomes, shared leadership is an important resource that results in high team performance on complex tasks (Carson et  al., 2007). A meta-analysis by Wang et al. (2014) also found that shared leadership was

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positively related to team effectiveness. Results of the meta-analytic review also indicate that shared leadership had a stronger relationship with attitudes (e.g., job satisfaction) and behavioral processes and emergent states (e.g., cooperation and helping). Using longitudinal data over a 4-month period, Drescher et  al. (2014) found that an increase in shared leadership within groups leads to an increase in group trust that in turn leads to performance improvement. Zhu et al. (2018) also found that shared leadership was positively related to team creativity and innovation.

7.2.5 Abusive Supervision Traditionally, leadership theory and research were dominated by a focus on positive, constructive leadership (e.g., transformational leadership, charismatic leadership, and ethical leadership) and its positive effects on employees, teams, and organizations. Nevertheless, as more and more hostile behaviors perpetrated by organizational leaders are reported on social media, much attention has been devoted to understanding destructive leadership and its consequences (see Krasikova et  al., 2013 for a review). Research into different forms of destructive leadership, such as abusive supervision (Tepper, 2000), supervisor undermining (Duffy et  al., 2017), petty tyranny (Ashforth, 1994), supervisor aggression (Schat et  al., 2006), and supervisor bullying (Fox & Stallworth, 2005), has exponentially grown over the past two decades. The most commonly studied form of destructive leadership is abusive supervision, defined as “subordinates’ perceptions of the extent to which supervisors engage in the sustained display of hostile verbal and nonverbal behaviors, excluding physical contact” (Tepper, 2000, p. 178). The forms of abusive supervision include ridiculing, undermining, and yelling at followers in front of or behind other people. Extending its original definition, Tepper (2007) suggested that abusive supervision is intended “to accomplish objectives other than causing injury” (p. 265). Supervisor characteristics are regarded as the primary explanation for abusive supervision. A meta-analytic review by Zhang and Bednall (2016) found that abusive supervision was predicted by supervisor negative affectivity, leadership styles, and personal characteristics. Tepper et al. (2017) proposed an integrative model of three antecedent mechanisms – social learning, identity threat, and self-regulation impairment – to explain why supervisors abuse their followers. In addition, followers with certain personal characteristics (e.g., personality traits and gender) are more likely to elicit supervisors’ hostility (see Wang et  al., 2019 for a meta-analysis). Tepper et  al. (2017) concluded that perceptions of abusive supervision have a wide range of negative consequences for individuals, teams, and organizations. First, followers who perceived abusive supervision tend to retaliate against their supervisors and react with displaced aggression against family members, coworkers, and the organization. Abusive supervision may also diminish followers’ well-­ being. When abusive supervision becomes a team property, more members tend to

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copy the abusive leader behavior and direct aggression and hostility toward fellow members, creating widespread conflict within the team (Farh & Chen, 2014).

7.3 Gender and Culture in Leadership Gender and cultural differences impact how leaders behave and how their followers perceive them. For example, men and women differ in their leadership styles. A leader who is considered effective in an Asian country may not be considered effective in the United States. This section will discuss gender and cultural differences in leadership.

7.3.1 Gender Differences in Leadership Over centuries, women are stereotyped as lacking in leadership qualities. However, research suggested that female leaders can be effective. For example, women were more people-oriented and democratic, whereas men were more task-oriented and autocratic (see Eagly & Johnson, 1990 for a meta-analysis). Another meta-analysis by Eagly et al. (2003) also found that female leaders were more transformational and engaged in more contingent reward behaviors than male leaders. Despite evidence supporting that women can be effective leaders, glass ceiling still exists. Leadership is labeled as “masculine,” and men are typically perceived as more effective than women in leadership positions. Due to the gender stereotypes and gender roles that form in the childhood, it is difficult for women to advance within the organization’s hierarchy. Women striving for leadership roles may have to meet a higher standard than men on average. This is evidenced by a meta-analysis by Paustian-Underdahl et al. (2014) revealing that when other-ratings only are examined, female leaders were rated as significantly more effective than male leaders. In addition to glass ceiling, there are several challenges that women face when moving up in the organization. First, the “glass cliff” phenomenon describes that women are more likely than men to be appointed to leadership positions during times of crisis or organizational decline. This can put women in a difficult position, as they are more likely to fail in these roles and face blame for the organization’s problems. Second, women in leadership roles often face a “double bind” dilemma in which they are expected to be both assertive and warm but are penalized if they are perceived as too assertive as assertiveness violates the widely accepted gender roles of women. Third, men are more likely to be evaluated on their potential for leadership, whereas women are more likely to be evaluated on their past performance. This creates a masculinity bias in performance evaluations and limit women’s opportunities for advancement. Fourth, women in leadership roles also suffer from the “motherhood penalty,” which describes that mothers are often perceived as

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less competent and committed to their jobs than nonmothers and hence are more likely to be passed over for promotions and leadership roles.

7.3.2 Cross-Cultural Research in Leadership Culture affects leadership behaviors and outcomes (Hanges et al., 2016). To understand the impact of organizational/societal culture on leadership and organizational processes, the Global Leadership and Organizational Behavior Effectiveness (GLOBE) project was launched in 1991 to identify universal and culturally specific aspects of leadership attributes (House et al., 2002). The GLOBE project contributes to the cross-cultural and leadership research by categorizing cultures into nine dimensions (i.e., performance orientation, future orientation, assertiveness, power distance, humane orientation, institutional collectivism, in-group collectivism, uncertainty avoidance, and gender egalitarianism) and identifying six global culturally implicit leadership (CLT) dimensions (i.e., charismatic/value-based, team oriented, participative, humane-oriented, autonomous, and self-protective; Dorfman et al., 2012). Dorfman et al. (2012) also demonstrated that effective leaders tend to lead in the way consistent with their culturally endorsed leadership prototypes. Minorities may face challenges to move up in organizations. For example, Bamboo ceiling is a phenomenon that Asians on average receive the highest education and highest median income across ethnic groups but are underrepresented in the leadership roles in the United States. A research study by Lu (2022) suggested that the reason why East Asians are experiencing bamboo ceiling is that they socialize more with ethnic in-group members (exhibit higher ethnic homophily). As American culture and East Asian cultures have differences in communication styles (e.g., American culture encourages assertiveness and emotional expressivity, while East Asians communicate directly, implicitly, and humbly), ethnic heterogeneity (e.g., Chinese culture has low ethnic heterogeneity, while American culture may include a mix of European and other cultures), and relational mobility. Due to the cultural differences, East Asians exhibited higher ethnic homophily that results in lower leadership emergence. As culture impacts leadership behaviors (Dorfman et  al., 2012), paternalistic leadership is “a prevalent management style in cultures that value collectivism and hierarchical social relations” (Pellegrini & Scandura, 2008, p.  583). Paternalistic leadership, defined as “a style that combines strong discipline and authority with fatherly benevolence and moral integrity” (Farh & Cheng, 2000, p. 94), is rooted in Confucian ideology. Paternalistic leadership demands blind submission to authority from employees (authoritarianism), expresses personal concern for employees (benevolence), and shows superior personal virtues (morality). Uhl-Bien et  al. (1990) suggested that paternalism was positively related to LMX and employees’ job satisfaction in the Japanese context, while it would be ineffective in the North American context due to the forced submission and dependency.

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7.4 Power, Influence, and Politics Power, influence, and leadership are closely related to one another. As leaders use power and to influence followers to get things done, a key theme of leadership research is to understand how leaders use power to impact followers, teams, and organizations. Influence tactics are strategies in which people translate power into specific actions. The use of influence tactics impacts followers’ perceptions of organizational politics (Ferris et al., 2019), which is also deeply linked to leadership. This section will introduce power, influence tactics, and organizational politics.

7.4.1 Power Power is one’s ability to make others to do what he/she would have them do. Holding a source of power over someone else enables people to act in a certain way or commit specific actions, because the people believe that the power could result in certain consequences. In other words, power sometimes relies on forcing others to do things. Power plays out in all arenas of work and personal life. In the workplace, power holders use power to control and direct organizational resources, guide organizational activities, and get their employees to achieve objectives that they set. Power comes from different sources, which include legitimate power, reward power, coercive power, expert power, and referent power. Legitimate power, often considered “authority,” comes from formal position. Holding legitimate power, leaders communicate a clear command to allocate organizational resources and guide employees to accomplish organizational goals. For example, a CEO’s legitimate power is granted by the organization’s board of directors. The CEO can use the legitimate power to control over all financial, human, informational, and physical resources in the organization; nevertheless, they are responsible for organizational performance. However, once the CEO is removed from office, his legitimate power is gone the next day. Legitimate power can be either positive or negative. Positive legitimate power focuses constructively on organizational performance, whereas negative legitimate power may threaten and demean the employees and the organization. Reward power is one’s ability to grant rewards (e.g., pay raises and promotion) to others. As positive reinforcement, leaders can use reward to motivate employees as long as they value the reward. Coercive power is one’s ability to punish others (e.g., suspending, demoting, terminating, or assigning unpleasant job assignments). The threats of punishment/coercion often reduce employee’s mental health (e.g., depression and anxiety). Despite the negative consequences, coercive power has its merits and should be used when employees have poor performance or engage in deviant behaviors. As legitimate power, reward power, and coercive power come from one’s position within an organization, they are position power.

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Expert power comes from one’s valued knowledge on a subject. Individuals who have expert power can influence and inform those who need such knowledge but know less than the experts on the subject. Referent power is one’s ability to influence others because he/she is liked, admired, and respected. Reward power comes into play when individuals have interpersonal skills and leadership qualities (e.g., charisma). Reward power helps leaders to build a strong connection with employees and become a role model of the employees. As expert power and referent power is independent of position, they are personal power. • • • • •

Legitimate power. Comes from one’s formal authority to issue command. Reward power. Comes from one’s ability to issue reward. Coercive power. Comes from one’s ability to punish people. Expert power. Comes from one’s expertise. Referent power. Comes from being admired and respected.

7.4.2 Influence Tactics Influence tactics are strategies that people consciously use to affect and change others’ attitudes or behaviors. There are nine influence tactics, namely, rational persuasion, inspirational appeals, consultation, ingratiation, personal appeals, exchange, coalition, pressure, and legitimating tactics. A meta-analysis showed that rational persuasion, inspirational appeals, consultation, and pressure were related to both task-oriented and relations-oriented outcomes (Lee et  al., 2017). Lee et  al. also found that the directions of influence tactics (i.e., upward, lateral, and downward) may influence the strength of the relationships between influence tactics and work outcomes. For example, rational persuasion has stronger relationships with both task-oriented and relations-oriented outcomes when the direction was downward than upward (Lee et al., 2017). • Rational persuasion. Convince someone to do something using logical arguments, statistical evidence, or other forms of proof. • Inspirational appeals. Build enthusiasm by appealing to someone’s emotions. • Consultation. Ask for someone’s inputs and invite him/her to participate in planning and decision making. • Ingratiation. Getting someone in a good mood before asking him/her to do something (e.g., by being friendly or using praise or humor). • Personal appeals. Ask someone to do something based on a relationship (e.g., friendship and a trusting relationship). • Exchange. Promise someone benefits in return for doing something. • Coalition. Create a network of supporters to do something. • Pressure. Use direct demands, threats, or intimidation to ask someone to do something. • Legitimating tactics. Command others to do something based on formal position.

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7.4.3 Organizational Politics Traditionally, organizational politics was often viewed as negative, self-serving, deceptive, and counterproductive. However, more recently, organizational scholars suggest that organizational politics is neutral and can also result in desired outcomes. For example, positive leader political behavior may increase resources for followers, provide followers with opportunities, and help followers to remove obstacles that prevent or delay them from achieving goal (Ellen et  al., 2013). Historically, the broad organizational politics literature includes three main areas: perceptions of organizational politics, political skill, and political behavior (Ferris & Treadway, 2012). Perceived politics is defined as “an individual’s subjective evaluation about the extent to which the work environment is characterized by coworkers and supervisors who demonstrate such self-serving behavior” (Ferris et  al., 2000, p.  90). Following the initial model proposed by Ferris et al. (1989) and Hochwarter et al. (2020) synthesized the existing meta-analytic reviews. Perceptions of organizational politics were influenced by four general antecedent categories: (1) demographic influence (e.g., age, gender, and tenure), (2) personal influences (e.g., Machiavellianism and political skills), (3) job/work environment influences (e.g., job autonomy, OCB, and LMX), and (4) organizational influences (e.g., centralization, hierarchical level, and span of control). Hochwarter et al.’s review also identified four general outcome categories, which include (1) psychological/health consequences (e.g., stress/anxiety and strain), perceptual consequences (e.g., trust, perceived justice, and LMX), attitudinal/intentional consequences (e.g., involvement, job satisfaction, and cynicism), and behavioral consequences (e.g., turnover, and performance). Political skill is a critical personality characteristic that enables individuals to secure resources and influence others. Political skill is defined as “the ability to effectively understand others at work, and to use such knowledge to influence others to act in ways that enhance one’s personal and/or organizational objectives” (Ferris et  al., 2007, p.  291). Political skill has four dimensions, which include apparent sincerity, social astuteness, interpersonal influence, and networking ability (Ferris et al., 2005). Political skill is a prediction of a range of important work outcomes. For example, political skill was positively related to self-efficacy, job satisfaction, organizational commitment, work productivity, OCB, career success, and personality reputation, and negatively related to physiological strain (see Munyon et  al., 2015 for a meta-analysis). A recent theoretical study identified the role of each political skill dimension in the social influence process of opportunity recognition, opportunity evaluation, and opportunity capitalization (McAllister et al., 2018). • Apparent sincerity. Appear honest, authentic, sincere, and genuine. • Social astuteness. Understand social interactions well and accurately interpret behaviors of oneself and others.

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• Interpersonal influence. Have a flexible, adaptive personal style that allows one to adapt and calibrate his/her behavior to different contexts, which in turn elicits positive responses from others. • Networking ability. Easily identify and develop diverse network of relationships. Political behavior is defined as “(1) an actor’s (individual) or actors’ (group) (2) self-interested, goal-directed (3) power and social influence actions that are performed (4) in relation to two or more interdependent social actors, (5) by means that are not officially sanctioned” (Lepisto & Pratt, 2012, p. 74). Political behavior is an antecedent of a range of work outcomes (e.g., job satisfaction, organizational commitment, and performance; see Ferris et al., 2019 for a review). In addition to general political behavior, political behaviors can also take the form of influence tactics and impression management (see Ferris et al., 2019).

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Part III

Macro Organizational Behavior Topics

Chapter 8

Organizational Processes Xiaotian Dai

Abbreviations OSSD Open-Source Software Development SMEs Small- and Medium-Sized Enterprises

8.1 Organizational Structure Case of Organizational Structure: Sharing Economy Operating in more than 300 countries worldwide, Uber is one of the big companies connecting drivers with people who need rides. Other companies also enable people to share underutilized cars, rooms, or parking spaces. For instance, Airbnb lets people rent extra rooms. Parkatmyhouse allows drivers to find parking spaces easily. All these “sharing economy” companies are enabled by smartphone and web apps, providing ordinary people with more convenient and economical services and ways to start their own businesses. As the sharing economy has become a huge industry and the development of many organic organizations, many questions about how to manage organizations have been raised. For instance, companies in sharing economy seem to have a unique understanding of structuring organizations. Instead of treating drivers as employees, Uber stresses that it is only an online platform that enables customers to find “independent contractors” or drivers. And it believes that it is not liable for paying drivers minimum wages and offering other labor protections. Because of this, Uber can keep labor and capital cost low but faces many lawsuits demanding employee protections at the same time. Therefore, it is crucial to ask what an organizational structure is and what is the appropriate way to structure organizations. Source: Smith and McCormick (2019). X. Dai (*) John Molson School of Business, Concordia University, Montréal, QC, Canada © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 N. Hou et al. (eds.), Organizational Behavior, https://doi.org/10.1007/978-3-031-31356-1_8

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8.1.1 What Is Organizational Structure? Organizational Structure  is the collection of all the ways that the work is broken up into different tasks so that coordination can be achieved (Mintzberg, 1983). During the surge of COVID-19 infection in the early months of 2020, a field hospital was established by healthcare leaders and the local government of Boston. This field hospital successfully provided immediate care for around 400 patients from April to June 2022, with a low hospital readmission rate and zero mortality. The positive clinical outcome can be attributed to the hospital’s organizational structure, which divided all the tasks into various functions such as clinical care and operation, human recourses, and information technology. Such a structure also enabled good coordination among people who focus on different tasks (Baughman et al., 2020).

8.1.2 Differentiation and Integration Differentiation  is the division of labor within organizations. Tasks within an organization must be divided because people have different knowledge, skills, and limitations. It is usually impossible and inefficient for everyone to do every task in an organization. For instance, physicians and nurses in the field hospital can take good care of patients, but they should not be expected to solve information technology problems. There are many ways to divide labor in organizations. In the case of the field hospital, all its labor was divided into several “departments” that were responsible for different tasks, such as clinical care and operation, human recourses, and information technology. In addition, work was also divided vertically. For those people who were responsible for clinical care, they specialized in their work based on the established lines of authority, ranging from chief nursing officer, to nurse director, to unit resource nurse, to registered nurse, to unit coordinator, and to patient care attendant (Ahmady et al., 2016). When tasks within an organization are divided, organizational members must coordinate these tasks to achieve organizational goals. Mintzberg (1979) presented five methods of coordinating divided labor: standardization of work processes, standardization of outputs, standardization of skills, direct supervision, and mutual adjustment. Standardization of Work Processes  is usually used in tasks that are relatively routine. Organizations use instructions or descriptions of procedures to ensure that divided efforts can achieve expected results and be coordinated to reach organizational objectives.

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Standardization of Outputs  This method is not concerned with how the work is done but instead focuses on ensuring that work output meets certain standards. The standardization of output is used when the situation is uncertain, and many possible ways can be used to complete tasks. Thus, it would be better to let task performers decide their work processes since they can find the best work processes under their unique situations. However, in order to ensure coordination, the final targets should be specified, and performers should meet these specified targets. Standardization of Skills  is used when work is very complex and cannot be divided, such as the work of technicians and professionals. These works often require performers to develop a standardized set of knowledge, abilities, and skills to make sure they can complete their specified tasks, coordinate with other professionals, and achieve organizational goals. For example, people from nurse education programs and physician programs have different skills but can coordinate and take care of patients together. Direct Supervision  is used when an individual has profound knowledge of the work and how the work should be done. Thus, this individual, such as a manager or supervisor, is able to direct subordinates’ actions and coordinate all their efforts to achieve organizational goals. Mutual Adjustment  is often used when tasks are complex, and the situation is uncertain, such that task performers need to engage in a lot of communication to decide how to perform these tasks. For instance, when a cross-functional team composed of people with diverse specialties is going to design a new product, product designers, engineers, manufacturers, and marketing advisors have to frequently communicate to discuss their diverse opinions and then decide what to design and how to design the product. To summarize, each method of coordination has its advantages and is appropriate for certain tasks or jobs in organizations. For example, when tasks are very routine, people can coordinate by the standardization of processes, outcomes, and direct supervision. However, when tasks are complex, and the situation is uncertain, skill standardization and mutual adjustment are needed to coordinate.

8.1.3 Structuring Characteristics Although many kinds of organizational structures exist, we can use five characteristics to describe and compare different organizational structures. These five characteristics are specialization, standardization, formalization, centralization, and configuration (Pugh et  al., 1968). Specialization is the division of labor in

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organizations. In other words, certain official duties within an organization are distributed among people at different positions. Organizations range from those in which all tasks are performed by everyone to those in which certain tasks are only performed by people in different positions. Standardization is the extent to which organizations standardize procedures that control tasks, images, personnel selection, and advancement. Formalization is the extent to which work roles in organizations are clearly defined. In highly formalized organizations, people’s job behaviors and procedures are prescribed and written down. The extent to which decisionmaking is centralized at organizational leadership, such as the chairman, is referred to as centralization. In a decentralized organization, the lower levels are permitted to make decisions pertaining to organizations, in contrast to a centralized organization where the upper levels make all decisions. Configuration is the shape of the organization structure. Specifically, the organization configuration can be assessed in two dimensions: the vertical span of control (or height) of the workflow superordinate hierarchy and the lateral span of control (or width). The vertical span of control is indicated by the number of job positions between the manager and the employees who are directly responsible for the output. The lateral span of control is indicated by the number of employees under a manager’s supervision.

8.1.4 Examples of Types of Structures In the first decades of the twentieth century, organizational theories were strongly influenced by the Industrial Revolution and factory systems. These theories tended to focus on the best way to structure organizations that can optimize productivity. However, later researchers questioned the viewpoint of “one best way” (Kessler et al., 2017). In 1961, Burn and Staker argued that the best way to structure organizations did not exist. Instead, they defined mechanistic and organic organizational structures, and believed that the mechanistic organizational structure is suitable for stable conditions, while the organic structure is suitable for dynamic conditions. Specifically, these two types of organizational structures have different characteristics (Burn & Staker, 1961). In mechanistic organizational structures, labor is divided, work procedures are standardized, work roles are clearly defined, and decisions are made by a small group of authorities (i.e., high specialization, standardization, formalization, and centralization). The mechanistic organizational structures also tend to have many management levels but a narrow lateral span of control. Communication usually happens between superiors and subordinates. The superiors’ instructions and decisions control subordinates’ work behaviors. A classic example of a mechanistic organizational structure is the military (army, navy, air force). In organic organizational structures, people can contribute to common tasks, work procedures are changing, work roles are not clearly defined, and decisions are made by a wide group of people (i.e., low specialization, standardization,

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formalization, and centralization). In addition, organic organizational structures also tend to have fewer management levels but a wider lateral span of control. Communication usually happens among people at the same level but also at different levels. Communication content relates to sharing information and advice instead of commands or instructions. Later, Mintzberg (1979) presented five basic configurations: the simple structure, the machine bureaucracy, the professional bureaucracy, the divisionalized form, and the adhocracy. The simple structure is usually used in small firms that are newly founded and often composed of one founder and several followers. In these firms, labor is not well divided, work procedures are changing, and work roles are not clearly defined. These features are compatible with the organic organizational structure, which allows them to be flexible and adapt to their environment. However, decision-making in these organizations is centralized. Thus, the leader, founder, or owner decides what work and how the work should be done and directly manages followers. Machine bureaucracy is often used in large industries and service firms. In these firms, labor is extensively divided, work procedures are standardized, and work roles are clearly defined. Decisions are made by leaders at a higher level. Its main method of coordination is standardization of work processes. Professional bureaucracy is used when the environment is stable, but tasks are too complex to be divided, such as in universities, hospitals, and accounting firms. Thus, people who have profound knowledge of a certain field will have large control over their own work processes. In other words, work processes are not standardized, and decision-­ making is decentralized. Its main coordination method is standardization of skills. For instance, universities usually provide complex educational services through highly trained university professors from various fields. These professors provide information to their students with different styles and are flexible in the delivery of content. Divisionalized Form  is used by organizations that provide services and products to diverse markets. These organizations have one central office and several divisions. Each division has its unique structure, such as professional bureaucracy and simple structure. The central office gives a certain level of autonomy to these divisions, such that they can make their decisions to meet the needs of diverse markets. However, the central office still controls the outputs of their divisions. Therefore, its main method of coordination is standardization of outputs. Many global companies may have divisions based on different geographic areas. For example, the McDonald’s in Malaysia provides halal food, the McDonald’s in Japan offers the Ebi Filet-O (shrimp patty). And customers in Canada can get poutine (french fries and cheese curds with gravy). Finally, Adhocracy is used when the environment is complex and dynamic. Organizations need to be flexible and constantly change to adapt to this environment. Thus, instead of an extensive division of labor, standardized work processes, and clearly defining work roles, organizations with this structure are more organic and use mutual adjustment to coordinate. This structure facilitates organizations’ creativity and innovation.

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In recent years, several new types of more organic organizational structures have been developed, including the horizontal/flat organization, modular corporation, ambidextrous organization, open-source software development, and Wikipedia. Flat Organization  A flat organization has minimal layers. It is a type of organic organizational structure. Many start-ups structure their organizations in this way. They usually have a small number of people and do not need hierarchical layers of managers to coordinate (Mintzberg, 1979). The flat structure makes decision-­ making more efficient and enables these organizations to adapt flexibly to their challenging and dynamic environment (Burn & Staker, 1961). An empirical study discovered that flat structures allow employees of game development start-ups to exchange ideas freely, which, in turn, facilitates ideation and creative success (Lee, 2022). However, the flat structure is not a good choice if the organization is to pursue execution and commercial success. Lee (2022) argued that the flat structure will lead to execution and commercial failures because managers are often overwhelmed by the enormous responsibility of directing subordinates and solving conflicts among them, and then leaving subordinates aimlessly exploring ideas or struggling in dysfunctional conflicts. Luckily, the study further found that adding a hierarchical level in these flat organizations can stop the aimless exploration and dysfunctional conflicts and help them achieve subsequent commercial success (Lee, 2022). Modular Corporation  An organization is referred to as being modular if it focuses on a few core functions while delegating the rest to outside experts. (Tully, 1993). Rather than forming a huge and vertically integrated organization, modular organizations focus and excel on a few core activities. For instance, Nike and Rebook focus on designing and marking fashionable high-tech footwear and outsource production to various suppliers that manufacture good quality products but require lower labor costs. Modular organizations have several advantages, including reducing costs and investment for producing new products, devoting organizations’ resources to functions where they have competitive advantages, adapting to fast-­ changing markets, and achieving rapid growth. However, given that modular organizations’ business is heavily dependent on outside suppliers, they need to find loyal, reliable, and trustworthy partners. Ambidextrous Organization  Ambidextrous organizations refer to organizations that can explore new opportunities while simultaneously exploiting their current capabilities (Raisch et al., 2009). For instance, Apple is an ambidextrous organization that has achieved a high level of innovation and efficiency (Heracleous, 2013). Apple has a relatively flat organizational structure, and bureaucracy is minimized. As discussed above, this flat structure can contribute to ideation and creative success. In addition, Apple also hires talent and collocates them in one physical space, its campus, to enable their intensive coordination and innovating activities.

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Meanwhile, in order to achieve high efficiency, Apple focuses on the most important functions (i.e., design and innovation), outsources other functions, such as ­manufacturing, to efficient suppliers, enhances its bargaining power with suppliers by reducing the number of supplies, and shortens manufacturing and delivering time by asking suppliers to set up near Apple’s facilities. Open-Source Software Development (OSSD)  OSSD is a new form of organizational structure (Puranam et al., 2014), which is used by individual developers and companies, such as Google, Facebook, and Alibaba, to develop open-source software (Shahi, 2020). An OSSD project is usually composed of the project founder, core developers, and voluntary contributors (Puranam et al., 2014). The coordination within OSSD projects relies on a virtual, pull-based development process, which includes several steps: first, any member of them can propose their code changes; second, the proposed coded changes are reviewed and evaluated by the project funder or core developers; third, if the proposed code changes are qualified, these changes will be used in the main project; fourth, any member can also contribute to the project by reporting issues in the main project. Wikipedia  Wikipedia is one of the free user-generated reference works. Any registered users can create new content or edit existing content. The organizational structures of Wikipedia projects are more decentralized than the structure of OSSD projects because usually, no chief editors or reviewers will control content made by users; instead, the factual misinformation and duplication content will be corrected by other users (Puranam et al., 2014). To sum up, the ideal organizational structures have changed since the early twentieth century as a result of the changing environment (Anand & Daft, 2007). Between the 1800s and the late 1970s, the ideal organizational structure was a self-contained organization that stresses hierarchical control and separate functional specialization. However, starting in the 1980s, as the world became more complex, organizations needed coordination between departments and efficient vertical communication. As a result, horizontal organizations that break down internal boundaries and allow horizontal coordination become the ideal structure. In the mid-1990s, due to the advancement of communication technology and the availability of substantial, skilled, or low-cost suppliers, modular organizations that opened internal and external boundaries of the organizations to have many tasks performed externally became the ideal organizational structures. Recently, many new forms of organizational structures have been developed and used to meet the requirements of new types of tasks and environments, including Linux, Wikipedia, and Oticon (Puranam et al., 2014). All these examples show that there is no one ideal organizational structure. Instead, different structures should be used depending on the circumstance (Mintzberg, 1979).

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8.1.5 What Impacts Structure? Many contextual variables influence organizational structures. Pugh et al.’s (1969) empirical study found that seven aspects of organizational context (i.e., origin and history, ownership and control, size, charter, technology, location, and dependence on other organizations) influence three dimensions of organizational structures (i.e., structuring of activities, concentration of authority, and line control of workflow). The structuring of activities, containing the three structuring characteristics discussed above, is the degree to which employees’ behaviors are clearly described by task specification, standardized routines, and formal paperwork; the concentration of authority refers to the degree to which organizations’ authority primarily make decisions, and the line control of workflow is the degree to which line personnel, rather than impersonal procedures, exercise control. Origin and History  Impersonally founded organizations, such as government-­ owned organizations, typically have a high concentration of authority and to be line-controlled in their workflow. Older organizations tend to be more decentralized and autonomous and have experienced more types of change. Organizations that have experienced more changes tend to be decentralized. Ownership and Control  Public accountability, which is the extent to which an organization is subject to public scrutiny when conducting its affairs, is positively related to concentration of authority, standardization of procedures for selection and advancement, and line control of workflow. Concentration of ownership with control is the extent to which an organization’s shareholders, directors, and executives are the same. It is associated with the dispersion of authority. Size  Larger organizations (i.e., a larger number of employees and net assets) have higher levels of specialization, standardization, and formalization but a lower level of centralization. The size of the parent organization is positively correlated with structuring and concentration of authority. Charter  Charter refers to organization’s social function, goals, ideology, and value systems. Organizations that are more concerned with manufacturing nonstandard producer goods will more reply on impersonal control of workflow. Organizations that provide more standard consumer services tend more to use line control of their workflow through the supervisory hierarchy. Organizations with operating diversity tended to have more structured activities and dispersed authority. Technology  Technology here is the extent to which an organization’s technology is integrated, automated, and rigid. It is associated with a greater structuring of activities and procedures, decentralized authority, more reliance on impersonal control, and reduced labor costs. For instance, in the open-source software development (OSSD), geographically dispersed developers coordinate with each other through

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the technology, git: a version control system that can tracks file changes and ­coordinates changes from different people. Because of using git, the coordinating activities and procedures (i.e., proposing code changes, reviewing, and using these changes) in OSSD are relatively structured. Location  Organizations with a larger number of operating sites tend to have less structured activities but more centralized authority and more reliance on impersonal control. Dependence on Other Organizations  The dependence of an organization refers to the organization’s relationships with other organizations, such as its parent organizations, suppliers, and clients. Dependent organizations’ authority structure is more centralized and tends to standardize procedures for selection and advancement. Other environmental factors, such as culture and the global pandemic, also impact organizational structures. For example, a comparative study found that Japanese manufacturing plants had taller hierarchies, greater formal centralization, but less specialization, less centralization than American plants (Lincoln et al., 1986). Amazon was initially an online marketplace for books. Later, it expanded its services beyond books and now sells almost everything. In March 2020, the COVID-19 lockdown led to suddenly increasing customer orders. In order to deal with this dramatic environmental challenge, Amazon recruited more than 175,000 workers to fulfill customer orders and spend billions on coronavirus-related investment, such as safety gears and test labs, to protect employees (Annie Palmer, 2020). The pandemic also hugely impacted the airline industry. An empirical study found that low-cost carriers in Thailand that stressed personnel with high competence, organizational culture, and risk management can impact organizational structure to enhance organizational performance during the pandemic (Kankaew et al., 2021). A study proposed that agile organizational structures, which are flat and flexible, can react and adjust rapidly during a global shack, like the pandemic, and then leads to positive organizational outcomes in higher education (Arokodare & Falana, 2021).

8.1.6 What Do Organizational Structures Impact? Perceived Fairness  An empirical study found that centralization was negatively correlated to perceived procedural fairness (Schminke et al., 2000). Centralization includes two dimensions: participation and authority hierarchy; high centralization means low participation and high authority hierarchy. When employees are allowed to give more input into policies and procedures (i.e., higher participation) or when employees have more discretion about their tasks (i.e., lower authority hierarchy), they tend to perceive a higher level of procedural fairness. The size of the organization also contributes to the perceived interactional fairness (Schminke et al., 2000). In larger organizations, which have fewer relationships based on close personal con-

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tact, people are less likely to perceive interactional fairness. For instance, the real Madrid soccer club registered as a member-owned, nonprofit sports organization. Interested parties who have purchased annual memberships can participate in the clubs’ internal decision-making process (e.g., elections, electing the Club President). The organizational structure recognizes membership as a fundamental part of institutional functions and grants members the ability to contribute to the clubs’ decisions, democratically. Coaches and team members for all divisions are also members and their votes count as much as any other, which raises the perceived levels of participation and authority hierarchy, and improve the perceived organizational fairness. Performance  According to Dalton et al.’s (1980) review, subunit size is negatively related with performance and positively related with absenteeism; some evidence supports a positive relationship between specialization and performance and a negative relationship between centralization and performance. However, the relationships between other structural variables (i.e., span of control, flat or tall hierarchy, administrative intensity, and formalization) and performance are unclear. In order to augment our knowledge of the structure-performance relationship, we need more studies that measure performance objectively, examine various industries with longitudinal designs, and consider the moderating effect of situational variables (Dalton et  al., 1980). For instance, although Burn and Staker (1961) argued that mechanistic organizational structure is appropriate for stable conditions, while the organic structure is appropriate for dynamic conditions, for new businesses in emerging economic sectors, this argument may not be valid.. This is because it is particularly difficult for new businesses without formal structure to operate well in in emergent economic sectors where there are no industry norm regarding organizational design and work processes. (Stinchcombe, 1965). Supporting the argument, an empirical study found, compared to other businesses, new businesses that have higher levels of team formalization, functional specialization, and administrative intensity achieve a higher level of firm revenues; moreover, the greater the size of founding teams, the greater the positive impact that functional specialization has on company revenues (Sine et al., 2006). Innovation  Iranmanesh et al. (2021) found that organizational structure (i.e., specialization, formalization, informal social relations, and link mechanisms) positively impacts organizations’ innovation capability and operational performance. Moreover, when organizations have a stronger innovative culture, both informal social relations and link mechanisms have more of an impact on organizations’ capacity for innovation. Organizational Learning  The organizational processes of information acquisition, distribution, shared interpretation, and the development of organizational memory are all referred to as organizational learning (Flores et al., 2012). Companies with more organic structures (i.e., lower horizontal job specialization and centralization,

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higher socializing, and greater autonomy) learn more than those with more mechanistic structures (Martínez-León & Martínez-García, 2011).

8.2 Organizational Culture Case of Organizational Culture: Organizational Cultures of Google As one of the biggest technology companies in the world, Google has continued to grow and thrived greatly. One important contributor to its success is its unique culture. For instance, Google has a “people operation” culture, which means that Google “looks at everything from a perspective of data.” In other words, they satisfy employees’ needs and improve their productivity by constantly experimenting, collecting, processing data, and using it to make management decisions. Besides this, other cultures also exist and play roles in Google’s success. Its open culture shows respect toward employees’ cultural backgrounds, allows employees to enjoy many convenient services, such as free food and health care, and enables employees and customers to contribute to the success of Google. Given the crucial roles organizational cultures play, in this part, we will talk about what organizational culture is, its benefits and liabilities, and how to develop organizational cultures. Source: Tran (2017).

8.2.1 What Is Organizational Culture Organizational culture refers to “the pattern of shared values and beliefs that help individuals understand organizational functioning and thus provide them with norms for behavior in the organization” (Deshpande & Webster, 1989, p.  4). Organizations often have several subcultures, which refer to diverse small cultures that are formed based on different departments, professionals, and occupations (Gregory, 1983; Sackmann, 1992). Organizational cultures are usually invisible but can be manifested by their symbols, rituals, and stories, such that employees can see and communicate organizational cultures. Organizational symbols refer to any object or event within an organization that can convey meanings about the organization (Ornstein, 1986). Consider Tesla Motor’s name and its “T” logo, which represent Nikola Tesla, a genius inventor, and electrical engineer, and part of his invention, the electric motor (Wasik, 2017). These symbols convey the importance of innovation and technology in Tesla Motor’s culture. Rites, rituals, and ceremonies can transmit organizational cultures too. Rites refer to complex, dramatic, and planned sequences of activities that that bring together a variety of cultural manifestations into a single event and are carried out by social interactions (Trice & Beyer, 1984). For instance, team members have a drink in office to celebrate a successful project. Ritual refers to the

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standardized collection of strategies and actions that alleviate anxiety but rarely result in desired, technical consequences of practical importance (Trice & Beyer, 1984). For instance, in some companies, employees bring their lunch every day and enjoy it together in the dining room and celebrate individual, team, or project success by having drinks in the offices. These activities convey the organization’s people-oriented culture and outcome-oriented culture, respectively. Ceremonies refers to the arrangement of a few rites connected with an event or occasion (Trice & Beyer, 1984). For example, once you complete the requirements of the MBA program, the Herberger Business School conducts a hooding ceremony, where you will be given a symbol of your accomplishment (the hood). Afterwards, you can attend the commencement ceremony where your accomplishment will be recognized. Organizational stories depict a single, coherent sequence of events that happened in the organization’s history; They convey organizations’ unique cultures through explicit details and implicit morals (Martin et al., 1983). Rule-breaking stories and stories that ask the following questions occur in various organizations: “Is the big boss human? Can the little person rise to the top? Will I get fired? Will the organization help me when I have to move? How will the boss react to mistakes? And how will the organization deal with obstacles?” (Martin et al., 1983, pp. 442–444). For example, Zappos stories about customer services demonstrate its customer-centricity culture: offering timely and overnight delivery at no additional cost for a wedding and talking 10 h with a customer who needs help (Fabbioni, 2019).

8.2.2 Benefits and Liability of Cultures In an organization, some cultures are stronger than others. These stronger cultures are more stable, intense, and widely shared within an organization (Saffold, 1988; Sørensen, 2002). Strong cultures can bring benefits to organizations but also make organizations unable to adapt to new environments. According to a systematic review, organizational cultures can contribute to sustainable development and digitalization in small and medium-sized enterprises (SMEs; Isensee et al., 2020). Specifically, an environmental culture will foster environmentally friendly behaviors and decision-making. It can also facilitate organizations’ level of digitalization, which is related to these organizations’ features of information system design and the use of digital (e.g., IT) or disruptive technologies (e.g., Blockchain). Performance-oriented cultures that enhance effectiveness can increase employee satisfaction (Kwon & Jeon, 2020). When organizations have a stronger innovative culture, they will have greater innovation capacity and better performance (Iranmanesh et al., 2021). In the digital era, a digital organizational culture, which refers to “collective value and beliefs regarding availability, uses attitudes, and habit related to information and communication technologies” (Navaridas-Nalda et al., 2020, p. 4), positively affects government employee performance (Pangarso et al., 2022). Organizational cultures even shaped the pandemic responses of the Public

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Health Agency, one of the most important organizations in Swedish pandemic management (Olofsson et  al., 2022). Its culture of production focuses on broad and long-term view of public health, tends to rely on prior knowledge and evidence, but is also willing to gradually adjust measures according to new evidence, which shaped the Agency’s pandemic response as focusing on balancing current and future health risks, but sometimes resistant to change. Furthermore, organizations with strong cultures also have more reliable performance because strong cultures can bring many organizational benefits: goal alignment, coordination, control, and higher motivation (Sørensen, 2002). However, when industry volatility increases, the positive effects of strong cultures on man performance and performance reliability decrease since strong culture organizations are more committed to a certain understanding of the environment, lack exploration and change, and individuals whose opinions contract the organizations’ dominant opinion (Sørensen, 2002). However, organizational cultures lead to culture clashes during the merger process. One study has shown that after the merging of two firms with different cultures, the merged firm’s performance actually was lower compared to the premerger performance; furthermore, members of the merged firm had a tendency to overestimate the new firm’s performance and blamed the other firm’s members for the decline in performance (Weber & Camerer, 2003). During the merger process of Daimler-Benz and Chrysler, many cultural issues existed relating to executive compensation, business travel, work habits and styles, decision-making process, and financial reporting system. These different cultures became barriers to the merger and later operation as a unified team (Badrtalei & Bates, 2007). Another empirical study has shown that culture fit positively influences mergers and acquisitions success, which indicated by objective success (i.e., stock market and accounting-based performance) and subjective success (i.e., ratings of managers from the acquiring firm) (Bauer & Matzler, 2014). Thus, each organization’s culture should be studied and assessed before the merger to avoid culture clashes (Badrtalei & Bates, 2007; Cartwright & Cooper, 1993).

8.2.3 Foundation, Development, and Maintenance of Organizational Cultures Founders and top management shape organizational cultures. Organizations’ founders greatly impact organizational cultures (Schein, 2010). For instance, Apple’s cultures, such as top-notch excellence, secrecy, and combativeness, were created and influenced by Steve Jobs (Pauline, 2022). Furthermore, many studies have indicated that leadership styles can influence organizational culture (e.g., Pangarso et  al., 2022; Rizki et al., 2019; Wibisono et al., 2018). For example, Pangarso et al. (2022) found that empowering leadership, which refers to the process by which leaders

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share power, responsibility, and give autonomy to followers, is necessary for developing digital organizational culture. Reward systems can manage organizational cultures. For instance, research indicates the hierarchy-based reward system leads to the clan culture. In this culture, the relationships between individuals and organizations are fraternal. Individuals and their organizations have long-term mutual commitment. Individuals are interdependent and identify with their peers. In contrast, the performance-based reward system leads to the market culture, in which the relationships between individuals and organizations are contractual; individuals are independent of their peers (Kerr & Slocum, 2005). Organizations maintain their cultures through the attraction-selection-attrition process. First, different people prefer different organizational cultures. Potential employees tend to be attracted by organizations with cultures they like or will fit in. Research has indicated that job seekers with a high level of neuroticism have a lower change to be drawn to innovative organizational cultures; in contrast, those with a high level of openness to experience more tend to be drawn to innovative organizational cultures (Judge & Cable, 1997). However, some job applicants do not find the organizational culture attractive but are attracted by the organization’s salary and physical environment. Thus, in the second step, organizations will search for employees that fit their organizational cultures during the recruiting process. Finally, although organizations try to recruit the right employees, some employees cannot fit into the corporate culture after being hired. These employees will naturally leave their organizations, which is called attrition (Kristof-Brown et al., 2005). In addition, founders and leaders influence organizational culture through the attraction-­selection-attrition process because their personality and value profiles determine the organizational goals established and the types of employees attracted and selected (Giberson et al., 2005). Individuals learn organizational cultures through the socialization process. According to Pascale (1985), organizations take seven socialization steps to make their employees learn organizational cultures. Step one, carefully select employees with specific characteristics that will fit in organizational cultures. Step two, induce humility in new employees so that they tend to be more accepting norms and values of the organization. Step three is “in the trenches” training, or making new employees experience the bottom of the professional ladder so that they can master one discipline of the business. Step four, reward and promotion are tied to employees’ performance, which contributes to the success of the organization and is aligned with its values. Step five, identify organizations’ values with common values (e.g., serving mankind). This connection enables employees’ personal sacrifices, such as long work hours. Step six, expose employees to organization folklore or stories that validate the organization’s aims and cultures. Step seven, provide new employees with role models to mimic. These role models’ behaviors and ideas must be consistent with organizational cultures (Table 8.1). The COVID-19 pandemic has greatly influenced organizations and organizational cultures. For instance, many organizations adopted remote working. Prepandemic studies (when only a small number of employees worked remotely)

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Carefully select entry-level candidates Induce humility in new employees “In the trenches” training Reward and promotion Identify organizations’ values with common values Expose employees to organization folklore or stories Provide new employees with role models to mimic

showed that remote employees reported they felt more excluded, less respected, and less identified with the organization compared to office-based employees. However, during the lockdown of the pandemic, everyone must work remotely. Remote employees are therefore no longer in the minority. Instead, all members have come together to build a new culture to adapt to remote working (Bernstein et al., 2020). For instance, many organizations’ cultures became more conservative: transforming from exploration and creativity cultures to safety and resilience cultures (Spicer, 2020). Furthermore, to sustain effective and efficient remote working, managers must develop a low-context communication culture, which refers to communication within an organization that is direct, explicit, precise, and documented (Phillips, 2020). This culture ensures that an organization’s communication is inclusive and reachable and allows remote members to work asynchronously. Finally, organizations must not only nurture cultures that adapt to remote working, but also sustain their valuable original organizational cultures. Organizations can translate these cultures into remoting settings by rewarding employees’ behaviors aligned with organizational cultures, documenting rules that engender these cultures, and calling attention to and acknowledging important cultures in order to adapt to the disruption during the pandemic (Howard-Grenville, 2020; Phillips, 2020). GitHub, a collaborative hosting platform for software development, transitioned to a fully remote model from a previously hybrid model since the pandemic. GitHub continued to reward employees for community involvement, such as providing a paid day off for volunteering and providing dollar matches for donations, to help maintain the collaborative company culture.

8.3 Organizational Change Case of Organizational Change: Pandemic and Remote Working The recent COVID-19 pandemic has hugely impacted organizations since it made many organizations transmit from onsite to remote working. Because of the generally positive remote working experience during the pandemic, many organizations seem to be more accepting of remote working. According to Gartner’s CFO survey,

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around three in four CFOs and Finance leaders indicated that they plan to make some employees’ remote working permanent after the pandemic. As said by the practice vice present of Gartner, Alexander Bant, “This data is an example of the lasting impact the current coronavirus crisis will have on the way companies do business.” This organizational change is caused by the pandemic and organizations’ pressure to reduce costs and widely available advanced communication technologies. Many aspects of organizations, such as structures, cultures, policies, and work procedures, also change because of external forces, such as competition, technology development, pandemic, or internal forces, such as low productivity, conflict, strikes, sabotage, absenteeism, and turnover. In this section, we explore the organizational change process, resistance to change, and how to overcome the resistance, and implement organizational change. Source: Gartner (2020).

8.3.1 Change Process Price et  al. (1951) prosed that the organizational change process includes three stages—unfreeze, change, and refreeze. Unfreezing happens when organizational members are unsatisfied with the organization’s present state, which could include inappropriate practices, procedures, dropped performance, falling profits, and unsatisfied employees. Change happens when organizations make plans to shift from an unsatisfying state to a desired state. Changes can include enriched job designs, a revised hiring process, new organizational goals, and organizational restructuring. After these changes, the newly developed practices, procedures, or structures will be maintained by training, routines, or policies. However, although Lewin’s “changing as three steps” becomes the foundation of change theory and practice, some other researchers argued that this model is overly simplistic (Cummings et al., 2016). Weich and Quinn (1999) argued that two types of organizational change exist: episodic and continuous changes. The episodic change is infrequent, discontinuous, and intentional. It occurs in inertial organizations when they are unable to modify their deep structure to adapt to the changing circumstances. The episodic change follows the process of unfreeze-transition-refreeze, which is similar to Lewin’s “changing as three steps” model. For instance, in order to achieve higher and more steady profit, IBM shifted from making computers to being a successful service provider: by acquiring many services and software companies. In contrast, continuous change is constant, evolving, and cumulative. It occurs in emergent and self-­ organizing organizations, in which change is endless and driven by organizational instability and alertness. The continuous change follows the process of freeze-­ rebalance-­unfreeze. Specifically, when an organization is continuously changing, the change process starts with freeze, which involves freezing continuous change, making sequences visible, and highlighting patterns using stories. Rebalancing

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involves reinterpreting, relabeling, and reordering the patterns to eliminate blocks. Finally, the unfreeze process culminates in the return of more aware improvisation, translation, and learning.

8.3.2 Resistance to Change Although organizational change happens often, organizations’ members often resist change cognitively, affectively, and behaviorally (Smollan, 2011). For instance, when employees view organizational change negatively, they tend to leave the organization (Fugate et al., 2008). In contrast, when employees affectively commit to change, they are satisfied with their jobs and less inclined to quit (Rafferty & Restubog, 2010). Many reasons can contribute to the resistance to change. Personal and Organizational Interests  When organizational change events are inconsistent with organizational members’ and organizational goals, when the change is not ambitious enough to achieve these goals, and when change events are irrelevant to members’ well-being, people tend to resist changes (Oreg et al., 2018; Peccei et al., 2011; Sonenshein, 2010). People also resist change because they think the change will harm their self-interests, they do not understand or trust the change, perceive the change costs more than gain, and they have experienced unsuccessful changes in their organizations before (Kotter & Schlesinger, 2008; Rafferty & Restubog, 2010; Sonenshein, 2010). Coping Potential  When members believe that they cannot develop new skills and behaviors to cope with these changes and control related outcomes, these changes tend to be resisted by organizational members (Fugate et  al., 2008; Kotter & Schlesinger, 2008; Oreg et al., 2018). High Organizational Identification  High organizational identification hinders organizational change (Conroy et al., 2017). Employees with the high level of organizational identification are less likely to suggest modifying organizational practices but tend to resist organizational changes, such as mergers and acquisitions, because they believe that the change threatens their self-identity or requires them to adapt their current identity (Bouchikhi & Kimberly, 2003; Fiol, 2002; Sonenshein, 2010). For example, an employee of a technical company may have the following self-identify: I am software developer, but not a salesman. Thus, the employee may resist his/her company’s practices becoming more market oriented. Organizational Culture  Organizational culture can affect the acceptance of human resource management policies and practices (e.g., hiring procedures, selection processes, and incentive programs). These policies and practices are resisted when they are not congruent with organizational cultures (Stone et al., 2007). Organizational beliefs that diversity lowers hiring standards creates conflicts, harm performance,

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and the tolerance for unequal treatment, leading to opposition toward organizational diversity. In contrast, a positive diversity climate facilitates organizational change and learning (i.e., the capacity of an organization to adapt and grow on an ongoing basis; Groggins & Ryan, 2013). Organizational cultures  – participative decision-­ making, openness, learning orientation, and transformational leadership  – also facilitate organizational learning (Flores et al., 2012). Interactions Among Changes  Different organizational changes also interfere with each other. Kanitz et al.’s (2022) longitudinal study shows a case in which an organization initiated two organizational changes. However, the two changes were delegated to two different departments with different goals. Thus, organizational members only focus on the change they are responsible for but ignore the others. As a result, employees perceive inconsistencies between the two changes and think the inconsistencies negatively influence their work environment and the organization, which in turn leads to their negative emotional reactions. Change Agents’ Contributions  Change agents also contribute to the resistance to organizational changes (Ford et al., 2008). Specifically, they contribute to change recipients’ resistance by breaching psychological contracts and implied contracts with recipients before and throughout the change, failing to restore the damaged trust, failing to legitimize changes, misrepresenting the chances of the change succeeding, and failing to call people to action (Ford et al., 2008).

8.3.3 Overcome Resistance to Change Trust  When change recipients trust their organizations, or when change agents repair the damaged trust with recipients before and during changes, the recipients are less likely to resist changes (Ford et  al., 2008; Oreg et  al., 2018; Oreg & Sverdlik, 2010). Change Communication  When the number and quality of change information offered by organizations increase when the information can explain the appropriateness, rationality, and benefits of changes, and when the communication call for actions to changes, employees tend to accept changes (Ford et al., 2008; Kotter & Schlesinger, 2008; Rafferty & Restubog, 2010). With proper communication, employees perceive better informational justice (recall the concept from Chap. 2, Individual differences). Change Participation  When an organizational environment is supportive and encourages members’ participation in changes, they tend to perceive that they can cope with and control the changes; thus, they are less likely to perceive procedural justice and resist organizational changes (Kotter & Schlesinger, 2008; Oreg et al., 2018; Peccei et al., 2011).

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Support  When an organizational environment is supportive, employees less tend to resist organizational changes (Oreg et al., 2018). Furthermore, support from coworkers can lessen the harm caused by employees’ resistance to change on their creativity performance; when coworkers are more supportive, the negative relationship between employees’ resistance to change and creativity performance  is weaker (Hon et al., 2014). Commitment  When members commit to and identify with organizations, they tend to perceive that their interests are accounted for, and they are psychologically close to organizations; thus, they have a lower chance of resisting organizational change (Oreg et al., 2018; Oreg & Sverdlik, 2010; Peccei et al., 2011). Leadership  When members experience transformational leadership, they tend to perceive that their interests are accounted for, and they are psychologically close to organizations; thus, they are less likely to resist organizational change (Oreg et al., 2018). Empowering leadership can reduce the negative effects caused by employees’ resistance to change on their creativity performance; when more empowering leadership is used, the negative relationship is lower (Hon et al., 2014). Social Identity  Social identity refers to “that part of an individual’s self-concept which derives from his knowledge of his membership of a social group (or groups) together with the value and emotional significance attached to that membership” (Tajfel, 1978, p. 68). During a corporate takeover, if employees are able to preserve their existing social identity, or if leaders are able to alter employees’ perceptions of their social identity and assist them in acquiring a sense that they are acquiring a new positive identity, they will identify with the newly formed organization and will be better able to adapt to the organizational change; specifically, they will be more satisfied with their job and life, have more organizational citizenship behaviors, more posttraumatic growth, and lower depression (Mühlemann et al., 2022). Fairness  The degree to which people are given fair treatment during the change process also influences their acceptance and support toward organizational changes. Research shows that work unit members’ shared perception of change fairness positively relates to their acceptance and support for organizational change (Fedor et al., 2006). Selections  The individual difference can influence people’s resistance to organizational changes. Self-efficacious individuals are more committed to organizational change because they believe that they can successfully cope with uncertainty and stress related to organizational changes (Herold et al., 2007). People who have a high level of growth need, internal locus of control, and internal work motivation also accept organizational changes (Elias, 2009). In contrast, some people’s dispositional resistance to change is high (Oreg, 2006; Oreg & Sverdlik, 2010). Thus, to overcome resistance to organizational change, organizations can recruit and select employees with certain dispositions.

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8.3.4 Plan and Implement Organizational Change John Kotter’s eight-stage process for managing organizational change is a widely recognized model for planning and implementing organizational change (Kotter, 1996; Pollack & Pollack, 2015). Stage one, organizations must establish a feeling of urgency by talking about market competitiveness and identifying crises. Stage two, organizations need to form a powerful guiding coalition by having a powerful group to work together and lead the change effort. Stage three, organizations must build a vision to guide efforts to implement change and develop strategies to achieve the vision. Stage four, organizations must thoroughly explain the vision and strategies with employees and teach them related new behaviors. Stage five, organizations need to get rid of obstacles to change and encourage risk-taking ideas and actions. Stage six, organizations must prepare for, create, and reward individuals that contribute to performance improvement. Stage seven, organizations need to consolidate the improvement and produce more change by changing unfitting systems, structures, and policing, selecting and preparing employees who can carry out the vision, and implementing new changes. In addition, organizations can also create a culture for organizational change. For instance, an innovative culture can drive innovation changes in organizations (Iranmanesh et al., 2021). Stage eight, in order to institutionalize new approaches, organizations must explain the connections between the new behaviors and company success and create ways to foster developing and successful leadership (Table 8.2). Because of the disruptions caused by COVID-19 pandemic, many organizations had to change and adapt. Research showed that, during the pandemic, transparent internal communication among employees can help them use problem-focused control coping strategies, lessen their sense of uncertainty about organizational change, and foster positive relationships between employees and their organizations during organizational change (Li et  al., 2021). Given the enormous business challenges after the pandemic, such as inflation and pent-up customer demand, organizations also need to make changes to prepare for the postpandemic environment. Pedersen and Ritter (2020) propose five Ps to guide organizations to adapt to this challenging environment. First, understand your organization’s position in the market to make smart strategic decisions. Second, make a clear plan about how to get through the Table 8.2  Eight-stage process for managing organizational change Stage one Stage two Stage three Stage four Stage five Stage six Stage seven Stage eight

Establish a feeling of urgency Form a powerful guiding coalition Build a vision Explain the vision and teach related new behaviors Encourage change actions Prepare for, create, and reward performance improvement Consolidate improvements and produce more change Institutionalize new approaches

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crisis and go back to business. Third, consider how your organization’s perspective might evolve because of the pandemic and prepare your organization culturally to deal with the crisis. Fourth, consider what new projects should be launched to solve pandemic-related problems and benefit the organization’s future. Fifth, assess the organization’s preparedness to accomplish these new projects. The primary topics of this chapter are organizational structure, culture, and change. First, we discuss important concepts related to organizational structure (i.e., differentiation and integration of labor), different types of organizational structures, their characteristics, and their relationships with other aspects of organizations. Then, we talk about what organizational culture is, its benefits and liabilities, and how to develop organizational culture. Finally, we review the organizational change process, resistance to change, and offer recommendations for overcoming the resistance and implementing organizational change.

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Index

A Abusive supervision, 201–202 Accommodating conflict mode, 103, 173 Achievement, 187 Achievement-oriented leadership, 194 Adaptive, 207 Adhocracy, 221 Affective Commitment (AC), 29, 48 Age diversity, 119, 120 Agreeableness, 187 Ambidextrous organizations, 222 The amount of task structure, 193 Antecedents, 198, 200, 201, 206, 207 Apparent sincerity, 206 Appearance, 8, 159, 160, 162 Archival studies, 13 Articulating shared leadership in virtual teams, 119 Attitude, 67, 173, 177, 198, 200, 201, 205, 228 Auditing the virtual team progress and maintaining alignment between teamwork and organizational values, 119 Authentic behavior, 199, 200 Authentic leadership, 198, 199 Authenticity, 199 Authoritarianism, 203 Authoritative opinion, 13 Autocratic, 189, 202 Autonomy, 11, 47, 67, 82, 94, 95, 113, 206, 221, 227, 230 The avoiding conflict management strategy, 103 Avoiding conflict mode, 173

B Balanced processing, 199 Bamboo ceiling, 203 Behavioral approach, 184, 188–190 Behavior forces, 139–141 Belongingness, 70 Benevolence, 203 Bias, 175, 184 Big Five, 25–30, 32, 120, 187, 198 Big Five Personality, 25–30, 32 Body language, 33 Boundary-spanning team leadership behaviors, 114 Bounded rationality model, 136–138 C Calling, 70, 200, 231 Case studies, 13, 153 Centralization, 206, 219–221, 224–226 Central tendency, 196 Charismatic leadership, 197, 201 Charismatic team leadership behaviors, 113 Chronemics, 159, 161, 162 Coaching-focused team leadership behaviors, 113 Coalition, 105, 205, 236 Coercive power, 204, 205 Cognitive ability, 187 Cognitive bias, 6, 141 Cognitive dissonance, 49, 140–142 Cognitive style diversity, 121 Collaborating Conflict Mode, 172 Collective filtering, 151

© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 N. Hou et al. (eds.), Organizational Behavior, https://doi.org/10.1007/978-3-031-31356-1

243

244 Communication, v, 2, 3, 6, 7, 51, 75, 84, 101, 107, 110, 111, 114, 116–119, 121, 124, 143, 144, 148, 150, 157–178, 198, 203, 219–221, 223, 228, 231, 232, 234, 236 Communication-related qualification, 117 Competing conflict mode, 171–173 Completer-finisher (CF), 97 The compromising conflict management strategy, 103 Compromising conflict mode, 172 Configuration, 219–221 Confirmation bias, 6, 142, 143, 149 Conflict management qualification, 117 Conflict management strategies, 103 Conflict modes, 158, 171–173 Conformity, 36, 37 Conscientiousness, 187 Consideration, 7, 44, 46, 67, 77, 113, 137, 146, 150, 189, 190 Consideration team leadership behaviors, 113 Construct validity, 17, 26 Consultation, 205 Contextual, 169, 195, 224 Contextual performance, 197 Contingency, 184, 190–195, 200 Contingent reward, 197, 202 Continuance Commitment (CC), 48 Continuous change, 232 Co-ordinator (CO), 97, 98 Counterproductive behavior, 188 Criterion validity, 17 Cultural, 72, 165, 168, 169, 175, 176, 202, 203, 227, 229 Cultural diversity Culture, 66, 72, 80, 121, 163, 169–171, 173–176, 178, 184, 198, 202–203, 225–232, 236, 237 D Dark triad, 187, 188, 198 Data, 7, 10, 11, 13–17, 27, 28, 35, 39–41, 102, 133, 135–139, 141, 142, 147, 148, 167, 201, 227, 232 Decision-making, v, 3, 6, 38, 83, 94, 95, 103, 104, 107, 110, 113, 118, 121, 123, 124, 132–153, 163, 164, 176, 189, 198, 205, 220–222, 228, 234 Decision-making process, 68, 131, 132, 135, 138, 139, 141, 145–148, 226, 229 Deep level diversity, 119–121 The deep structure, 108–109 Default, 133, 135, 142, 151–153

Index Delegating, 98, 191, 192, 222 Democratic, 189, 202 Dependent variable, 14, 15 Descriptive analysis, 10 Designs, 3, 7–17, 46, 81–83, 91, 123, 141, 147, 151–153, 219, 223, 226, 228, 232 Devil’s advocate, 144 Diagnostic analysis, 10 Differentiation, 67, 96, 102, 196, 218–219, 237 Diffusion of treatments, 15 Directive leadership, 194 Direct supervision, 218, 219 Distributive justice, 73 Divisionalized form, 221 Double bind dilemma, 202 Dress, 160, 162 Dyadic, 163, 177, 178, 195, 196 Dyadic communication, 162, 163, 165 Dysfunctional conflict, 158, 171, 178, 222 E Education diversity, 121 Effort-to-performance expectancy, 75 Eight-stage process for managing organizational change, 236 Emotion, 6, 8, 9, 12, 25, 28, 29, 33, 94, 113, 117, 136, 138, 140, 160, 164, 165, 168, 169, 174, 175, 177, 178, 205 Emotional intelligence (EI), 187 Emotionally intelligent team leadership behaviors, 113 Emotional stability, 26, 27 Employee focused, 190 Empowering and developing people, 199 Empowering team leadership behaviors, 111, 113 Engagement, 83 Enriching the added values in the virtual work process, 118 Environment, 3, 4, 13, 24, 25, 36, 38–40, 43, 44, 50–52, 54, 55, 67, 68, 72, 75, 77, 80, 81, 94, 95, 106–109, 112, 115, 117, 132, 139–141, 146, 149, 153, 161, 194, 196, 206, 221–223, 228–230, 234–236 Episodic change, 232 Escalation of commitment, 143, 144 Establishing an inclusion climate, 118 Esteem, 70, 71 Ethical leadership, 198–201 Ethics, 122–125, 132, 139, 140 Ethnicity diversity, 119, 120

Index Evaluating teamwork constantly, 118 Exchange, 65, 68, 80, 91, 106, 109–111, 114, 120, 159, 195, 197, 198, 205, 222 Expert power, 204, 205 Extinction, 77 Extraversion, 26, 28–30, 121, 187 Extroversion, 27, 43 Eye contact, 159, 160, 162 F Face-ism, 186 Facial appearance, 184–187 Facial expression, 98, 160, 162, 188 Feedback, 11, 67, 81, 82, 95, 112, 113, 118, 142, 148, 151, 152, 158, 168 Fellowship, 200 Fiedler’s contingency model, 191–194 Field experiment, 166 Field study, 3 Fit, v, 24–25, 28, 35, 38–44, 52, 55, 67, 79, 109, 149, 187, 190, 191, 229, 230 Five Ps, 236 Fixed-interval schedule, 78 Fixed-ratio schedule, 78 Flat organizations, 222 Flexibility, 6, 125 The forcing conflict management strategy, 103 Formalization, 219–221, 224, 226 The forming stage, 106 Framing bias, 141, 142 Functional conflict, 171, 178 G Gamification, 76, 78–80, 153 Gender, 27, 51, 52, 101, 105, 119, 120, 139, 170, 171, 176, 201–203, 206 Gender diversity, 119, 120 Genetic factors, 188 Genetic influence, 188 Glass ceiling, 202 Glass cliff, 202 Global Leadership and Organizational Behavior Effectiveness (GLOBE), 203 Goal directed behavior, 68, 69 Group decision-making, 141, 143–150 Group Decision Support Systems (GDSSs), 148, 164 Group polarization, 143, 148–150 The group pride component of team cohesion, 100 Group problem-solving, 150–151

245 Groupthink, 143–148 H Haptics, 159, 160, 162 Hawthorne effect, 5 Hedonism, 36, 37 Helping virtual team members recognize and accept the new reality, 118 Heritability, 27, 188 Hersey and Blanchard’s Situational leadership theory, 191–192 High-control situation, 193 Human relations theory (HRT), 4–5 Human resource, 3, 46, 67, 68, 96, 118, 122, 172, 233 Humility, 199, 230, 231 Hygiene factors, 72 Hypothesis, 8–12, 44, 144 I Idealized influence, 196, 197 Ideology, 203, 224 IKEA effect, 83 Illusion of invulnerability, 145, 146 Illusion of unanimity, 145 Implementer (IMP), 97 Improving communication practices to maintain effective communication in virtual teams, 119 Incentives, 4, 17, 73, 78, 149, 151, 153, 233 Inclusion, 16, 70, 79, 122, 125 Independent variable, 14 Individual bias, 141–143 Individual consideration, 196, 197 Individual difference, v, 3, 6, 27, 32, 53, 73, 234, 235 Inertia, 109, 151, 152 Influence, 3, 25, 67, 91, 139, 164, 188 Influence of information, 148 Influence tactics, 184, 195, 204, 205, 207 Informational justice, 234 Information search and structuring, 112 Information use in problem-solving, 112 Ingratiation, 205 In-group, 143, 146, 150, 163, 195, 201, 203 Initiating structure, 189, 190 Initiating structure team leadership behaviors, 114 The input process output model, 107–108 Inspirational appeals, 205 Inspirational motivation, 196–198

246 Intellectual stimulation, 196–198 Interactional justice, 111, 123, 124 Intercultural qualification, 117 Interpersonal acceptance, 199 The interpersonal attraction component of team cohesion, 100 Interpersonal influence, 206, 207 Interpersonal justice, 45, 46, 124 Interrater reliability, 16, 17 Intervention, 12, 34, 52, 152 Intrapersonal communication, 162, 163 Intrateam justice climate, 122 Intuitive decision-making model, 138–139 J Job focused, 190 K Kinesics, 159, 162 Knowledge-hiding, 110, 111 Knowledge sharing, 110–111, 151, 153 Kurt Lewin’s leadership styles, 188, 189 L Laissez-faire, 24, 189, 197 Leader behavior, 190, 191, 197, 202 Leader Behavior Description Questionnaire (LBDQ), 189 Leader-member exchange (LMX) differentiation, 196 disparity, 196 separation, 196 variety, 196 Leader member relations, 193 Leader position power, 193 Leadership effectiveness, 16, 118–119, 184, 187, 188, 190, 191, 197 emergence, 187, 188, 203 styles, 189, 191–194, 201, 202, 229 Least preferred coworker (LPC), 193 Legitimate power, 204, 205 Legitimating tactics, 205 Listening, 79, 95, 159, 169 Low control situation, 194 M Machiavellianism, 187, 206 Machine bureaucracy, 221 Manage material resources, 112 Management by exception active, 197

Index Management by exception-passive, 197 Management teams, 90, 91, 105, 143 Managing personnel resources, 112 Mapping, 151, 153 Masculinity bias, 202 Maximum performance, 53 Mechanistic organizational structure, 220, 226 Media-related qualification, 117 Membership, 52, 100, 200, 226, 235 Meta-analyses, 12, 15–17, 27, 29, 30, 34, 73, 99, 103, 160, 188, 190, 197, 200–202, 205, 206 Method, 4, 8, 9, 13, 34, 35, 39, 40, 44, 52, 72, 81, 104, 109, 114, 148, 151, 158, 163, 164, 167, 173, 174, 178, 189, 190, 194, 218, 219, 221 Mind guards, 146 Moderate-control situation, 193, 194 Modular corporation, 222 Monitor evaluator (ME), 97 Monitoring the intrateam trust between virtual team members, 118 Moral illusion, 145 Morality, 144, 187, 203 Motherhood penalty, 202 Motivation, 3, 25, 66, 95, 139, 159, 190, 229 Motivation factors, 71, 72 Mutual adjustment, 218, 219, 221 N Narcissism, 187 Naturalistic observation, 9, 13 Need, 6, 34, 67, 90, 135, 158, 187, 217 Need deficiency, 68, 69, 74 Negative effect, 8, 235 Networking ability, 206, 207 Neuroticism, 187, 230 Non-programmed decision-making, 133–135 Nonverbal communication, 159, 162, 178 Normative Commitment (NC), 48 The norming stage, 106–107 Nudge, 79, 141, 151–153 O Observation, 8, 9, 13, 17, 25, 53, 76, 80, 168 Oculesics, 160, 162 Office politics, 139 Ohio State studies, 188–190 Olfalics, 161, 162 Openness, 187, 230, 234 Open-source software development (OSSD), 222–225 Organic organizational structure, 220–222

Index Organization negotiation, 174–177 process, v, 3, 5, 7, 203, 217–237 Organizational change, 7, 164, 231–237 change process, 232, 237 conflict, 173–174 culture, 107, 200, 225, 227–231, 233, 234, 237 structure, 95, 163, 170, 194, 217–227, 237 symbols, 227 Organizational behavior (OB), v, 1–18, 26, 140 Outcome valence, 75 Out-group, 195 Overcome resistance to change, 234–235 Overconfidence bias, 141 P Parallel teams, 90, 91 Participating, 65, 79, 80, 83, 145, 191, 192 Participative leadership, 194 Paternalistic leadership, 203 Path-goal theory, 191, 194–195 Peer pressure, 79 Perceived justice, 196, 206 Perception, 68, 73–75, 82, 160, 167, 168, 186, 201, 204, 206, 235 Perception of organizational politics, 204, 206 Performance, 4, 24, 66, 90, 139, 159, 186, 225 Performance-to-outcome instrumentality, 75 The performing stage, 107 Personal appeals, 205 Personality, 6, 24, 96, 174, 184, 230 Personality diversity, 120–121 Personality traits, 184, 186, 187, 195, 201 Person-environment, 38–44, 53 Person focused team leadership behaviors, 113–114 Person-Job (PJ), 24, 39, 41–43 Person-Organization (PO), 24, 39–41, 43, 44, 55 Person-Supervisor (PS), 39, 44 Person-Team (PT), 43–44 Person-Vocation (PV), 44 Physical height, 184–185 Physiological needs, 69–70 Placebo, 14 Plant (PL), 9–12, 97, 98 Political behavior, 37, 206, 207 Political skills, 187, 206 Positive moral perspective, 199 Positive psychological capital, 199 Positive therapy, 32

247 Power, 68, 70, 79, 80, 159, 164, 173, 174, 176, 184, 189, 193, 194, 203–207, 223, 230 Predictive analysis, 10 Prescriptive analysis, 10, 11 Pressure, 3, 8, 28, 51, 66, 98, 143–147, 153, 200, 205, 232 Priming, 151 The problem-solving conflict management strategy, 103 Procedural justice, 234 Professional bureaucracy, 221 Programmed decision-making, 133, 134 Pro-group unethical behavior, 124–125 Project teams, 90, 91, 101, 109, 110 Providing direction, 191, 199 Proxemics, 159, 161, 162 Psychiatric, 26, 51 Psychopathy, 187, 188 The punctuated equilibrium paradigm, 108 Punishment, 68, 73, 77, 78, 95, 114, 198, 204 Q Quasi-experiment, 9–10, 12, 15 R Rational decision making model, 136, 137 Rational persuasion, 205 Rationalization, 145 Readiness, 191, 192 Reassessment of need deficiency, 68 Referent power, 204, 205 Reinforcement, 68, 72, 76–80, 198, 204 Relational transparency, 199 Relationship-motivated, 192–194 Relationship-oriented, 188–190 Relative position, 196 Reliability, 16, 17, 25, 27, 81, 229 Research, 5, 7–18, 26, 30, 31, 34, 37–39, 42–45, 48–50, 52, 72, 79, 82, 105, 109, 115, 120–123, 125, 137, 143, 145, 149, 151, 152, 184–189, 195, 196, 198, 200–204, 230, 235, 236 Resistance to change, 232–235, 237 Resource Investigator (RI), 97, 98 The revolutionary periods, 109–110 Reward, 39, 42, 46, 54, 68, 69, 71–73, 75–80, 91, 95, 102, 104, 105, 107, 114, 119, 123, 193, 194, 198, 204, 205, 230, 231, 236 Reward power, 204, 205 Risk, 6, 10, 33, 42, 51, 52, 125, 138–140, 147, 148, 152, 167, 225, 229 Rites, rituals, and ceremonies, 227

248 Roles, v, 3, 7, 28, 34, 36, 46, 48–52, 69, 70, 96–98, 107, 109, 111, 112, 114, 119, 125, 132, 139, 141, 142, 144, 150, 151, 168, 170, 175–177, 184, 188, 194, 198, 200, 202, 203, 205, 206, 220, 221, 227, 230, 231 S Safety, 69, 70, 157, 225, 231 Satisfaction, 70–75, 79, 83, 159, 161, 190, 194, 196, 197, 199, 201, 203, 206, 207, 228 Scientific management, 67 Security, 65, 69–71 Self actualization, 70, 71 Self-awareness, 140, 199 Self-categorization, 148, 149 Self-censorship, 145, 146 Self-direction, 36 Self-esteem, 25, 31–32, 49 Self management qualification, 117 Selling, 66, 141, 191 Servant leadership, 96, 198, 199 Shaper (SH), 97, 98 Shared leadership, 114–115, 125, 200–201 Shared reality, 148, 149 Simple structure, 221 Situational contingency, 190, 194 Skill variety, 82 Social astuteness, 206 Social comparison, 100, 104, 105, 148, 151 Social comparison theory, 148, 196 Social facilitation effects, 99, 100 Social incentives, 76, 79–80 Social loafing, 98–100, 143, 144 Social media, 27, 28, 79, 80, 152, 157, 166, 167, 201 Social pressure, 143, 151 Specialist (SP), 97 Specialization, 4, 219, 220, 223–226 Spiritual leadership, 198, 200 Stakeholders, 199 Standardization, 218–221, 224 Standardization of outputs, 218, 219, 221 Standardization of skills, 218, 219, 221 Standardization of work processes, 218, 221 Status quo bias, 6, 142 Stereotypes, 105, 122, 145, 202 Stewardship, 199 Stimulation, 36, 196–198 Stories, 82, 131–132, 134, 227, 228, 230–232 The storming stage, 106 Stress, 159, 162, 165, 177, 206, 217, 223, 235

Index Sunk cost bias, 142, 144 Supportive leadership, 194 Surface-level diversity, 119–120 Sustaining a trusting corporate culture and displaying leaders’ trustworthiness, 118 System 1, 133–135, 151 System 2, 133–135, 151 T The task commitment component of team cohesion, 100 Task focused team leadership behavior, 113, 114, 125 Task identity, 82 Task-motivated, 192–194 Task-oriented, 189, 190, 202, 205 Task performance, 197 Task significance, 82 Taylorism, 4 Team climates, 94, 113 Team cohesion, 100, 101, 111, 122, 124 Team competition, 104–105 Team conflicts, 102–104, 117, 196 Team cooperation, 101–102 Team decision-making, 95 Team deviance, 122, 124 Team diversity, 119–122 Team justice climate, 122 Team learning, 95, 110–111, 121, 125 Team norms, 91–94 Team process conflict, 102, 103 Team psychological empowerment climate, 94–95 Team psychological safety climate, 95 Team relationship conflict, 102, 103 The team role model, 96–98 Teams and groups, 90 Team service climate, 95–96 Team structure, 95 Team task conflict, 102, 103 Team worker (TW), 97 Telling, 67, 191 Theory, v, 66–84, 184–201, 220, 232 Tradition, 36, 93 Trait, 6, 25–32, 34, 47, 49, 53, 105, 170, 184, 186–188, 190 Trait approach, 184–188, 190 Transactional leadership, 197, 198 Transactional team leadership behaviors, 114 Transcendence of self, 200 Transformational leadership, 95, 115, 196–201, 234, 235

Index Transformational team leadership behaviors, 113 Trust related qualification, 117 Typical performance, 53 U Unfreeze, change, and refreeze, 232 Universalism, 36, 38 University of Michigan Studies, 188–190 V Validity, 16, 17, 25, 26 Values, 14, 24, 70, 92, 138, 159, 194, 227 Values diversity, 121 Variable interval schedule, 78 Variable ratio schedule, 78

249 Variation, 196 Verbal communication, 159 Vertical leadership, 114–115 Video meetings, 166–167 Virtual teams, 116–119 Vocalics, 159, 161, 162 W Well-being, 160, 196, 201, 233 Wikipedia, 135, 222, 223 Work teams, 83, 90, 91, 122, 125, 194 Y The yielding conflict management strategy, 103