CHAPTER 15

psychological contract:
The overall set of expectations held by an individual with respect to what he or she will contribute
to the organization and what the organization will provide in return.
contributions What the individual provides to the organization
inducements What the organization provides to the individual
person–job fit The extent to which the contri  butions made by the individual match the
inducements offered by the organization
individual differences Personal attributes that vary from one person to another
personality The relatively permanent set of psychological and behavioral attributes that
distinguish one person from another
“Big Five”(ocean) personality traits A popular personality framework based on five key traits
agreeableness A person’s ability to get along with others
conscientiousness The number of goals on which a person focuses
negative emotionality Extent to which a person is poised, calm, resilient, and secure
extraversion A person’s comfort level with relationships
openness A person’s rigidity of beliefs and range of interests
The Myers–Briggs Framework Another interesting approach to understanding personalities in
organizations is the Myers– Briggs framework. This framework, based on the classic work of Carl
Jung, differentiates people in terms of four general dimensions. These are defined as follows.
• Extraversion (E) Versus Introversion (I). Extraverts get their energy from being around other
people, whereas introverts are worn out by others and need solitude to recharge their energy.
• Sensing (S) Versus Intuition (N). The sensing type prefers concrete things, whereas intu   itives
prefer abstract concepts.
• Thinking (T) Versus Feeling (F). Thinking individuals base their decisions more on logic and
reason, whereas feeling individuals base their decisions more on feelings and emotions.
• Judging (J) Versus Perceiving (P). People who are the judging type enjoy completion or being
finished, whereas perceiving types enjoy the process and open-ended situations.
Other Personality Traits at Work Besides the Big Five and the Myers–Briggs framework, there are
several other personality traits that influence behavior in organizations. Among the most important
are locus of con  trol, self-efficacy, authoritarianism, Machiavellianism, self-esteem, and risk
prope
locus of control The degree to which an indi  vidual believes that his or her be  havior has a
direct impact on the consequences of that behavior
self-efficacy An individual’s beliefs about her or his capabilities to perform a task
authoritarianism The extent to which an individual believes that power and status differences are
appropriate within hierarchical social systems like organizations
Machiavellianism Behavior directed at gaining power and controlling the behav  ior of others
self-esteem The extent to which a person be  lieves that he or she is a worth   while and deserving
individua
risk propensity The degree to which an indi  vidual is willing to take chances and make risky
decisions
emotional intelligence (EQ) The extent to which people are self-aware, manage their emotions,
motivate themselves, express empathy for others, and possess social skills
` attitudes Complexes of beliefs and feelings that people have about specific ideas, situations, or
other people.
cognitive dissonance Caused when an individual has conflicting attitudes
job satisfaction or dissatisfaction An attitude that reflects the extent to which an individual is
gratified by or fulfilled in his or her work.
organizational commitment An attitude that reflects an indi  vidual’s identification with and
attachment to the organization itself .
Affect and Mood in Organizations
positive affectivity A tendency to be relatively upbeat and optimistic, have an overall sense of
well-being, see things in a positive light, and seem to be in a good mood
negative affectivity A tendency to be generally downbeat and pessimistic, see things in a negative
way, and seem to be in a bad mood
Basic Perceptual Processes
perception The set of processes by which an individual becomes aware of and interprets
information about the environment
selective perception The process of screening out information that we are uncom  fortable with
or that contradicts our beliefs
stereotyping The process of categorizing or labeling people on the basis of a single attribute
Perception and Attribution
attribution The process of observing behav  ior and attributing causes to it
Stress and Individual Behavior
stress An individual’s response to a strong stimulus, which is called a stressor
General Adaptation Syndrome (GAS) General cycle of the stress process
Type A Individuals who are extremely competitive, very devoted to work, and have a strong
sense of time urgency
Type B Individuals who are less competi  tive, less devoted to work, and have a weaker sense of
time urgency
burnout A feeling of exhaustion that may develop when someone experi   ences too much stress
for an extended period of time
Creativity in Organizations
creativity The ability of an individual to generate new ideas or to con   ceive of new perspectives
on existing ideas
Types of Workplace Behavior
workplace behavior A pattern of action by the mem  bers of an organization that directly or
indirectly influences organizational effectiveness
performance behaviors The total set of work-related behaviors that the organization expects the
individual to display
Withdrawal Behaviors
absenteeism When an individual does not show up for work
turnover When people quit their jobs
Organizational Citizenship
organizational citizenship The behavior of individuals that makes a positive overall
contri  bution to the organization.

Chapter 17
The Meaning of Leadership
leadership As a process, the use of noncoercive influence to shape the group’s or organization’s
goals, motivate behavior toward the achievement of those goals, and help define group or
organiza  tional culture; as a property, the set of characteristics attributed to individuals who are
perceived to be leaders
leaders People who can influence the behaviors of others without having to rely on force; those
accepted by others as leaders
Leadership and Power
power The ability to affect the behavior of others
legitimate power Power granted through the orga  nizational hierarchy; the power defined by the
organization to be accorded to people occupying particular positions
reward power The power to give or withhold rewards, such as salary increases, bonuses,
promotions, praise, recognition, and interesting job assignments
coercive power The power to force compliance by means of psychological, emo   tional, or
physical threat
referent power The personal power that accrues to someone based on identi  fication, imitation,
loyalty, or charisma
expert power The personal power that accrues to someone based on the infor  mation or expertise
they possess
Generic Approaches to Leadership
Leadership Behaviors
job-centered leader behavior The behavior of leaders who pay close attention to the job and work
procedures involved with that job
employee-centered leader behavior The behavior of leaders who develop cohesive work groups
and ensure employee satisfaction
initiating-structure behavior The behavior of leaders who define the leader–subordinate role so
that everyone knows what is expected, establish formal lines of communication, and determine
how tasks will be performed
consideration behavior The behavior of leaders who show concern for subordinates and attempt
to establish a warm, friendly, and supportive climate
Managerial Grid Yet another behavioral approach to leadership is the Managerial Grid.18 The
Managerial Grid provides a means for evaluating leadership styles and then training managers to
move toward an ideal style of behavior
concern for production The part of the Managerial Grid that deals with the job and task aspects
of leader behavior
concern for people The part of the Managerial Grid that deals with the human aspects of leader
behavior
Situational Approaches to Leadership
LPC theory A theory of leadership that sug  gests that the appropriate style of leadership varies
with situational favorableness
least-preferred coworker (LPC) measure The measuring scale that asks leaders to describe the
person with whom he or she is able to work least well
path–goal theory A theory of leadership suggest  ing that the primary functions of a leader are to
make valued or desired rewards available in the workplace and to clarify for the subordinate the
kinds of behavior that will lead to those rewards
Vroom’s decision tree approach Predicts what kinds of situations call for different degrees of
group participation
leader–member exchange (LMX) model Stresses that leaders have differ  ent kinds of
relationships with different subordinates
Related Approaches to Leadership
substitutes for leadership A concept that identifies situa  tions in which leader behaviors are
neutralized or replaced by characteristics of subordinates, the task, and the organization
charismatic leadership Assumes that charisma is an indi  vidual characteristic of the leader
charisma A form of interpersonal attrac  tion that inspires support and acceptance
transformational leadership Leadership that goes beyond ordinary expectations by
trans  mitting a sense of mission, stimu  lating learning experiences, and inspiring new ways of
thinking
Emerging Approaches to Leadership
strategic leadership The capability to understand the complexities of both the organization and
its environment and to lead change in the orga  nization in order to achieve and maintain a superior
alignment between the organization and its environment
Political Behavior in Organizations
political behavior Activities carried out for the specific purpose of acquiring, developing, and
using power and other resources to obtain one’s preferred outcomes
impression management A direct and intentional effort by someone to enhance his or her image
in the eyes of others

CHAPTER 18
effective communication The process of sending a mes  sage in such a way that the message
received is as close in meaning as possible to the mes   sage intended
communication network The pattern through which the members of a group communicate
vertical communication Communication that flows up and down the organization, usually along
formal reporting lines; takes place between man  agers and their superiors and subordinates and
may involve several different levels of the organization
horizontal communication Communication that flows later  ally within the organization;
involves colleagues and peers at the same level of the organiza   tion and may involve individuals
from several different organiza  tional units
grapevine An informal communication network among people in an organization
management by wandering around An approach to communication that involves the manager’s
liter  ally wandering around and hav  ing spontaneous conversations with others

CHAPTER 19
Groups and Teams in Organizations
group Consists of two or more people who interact regularly to accom   plish a common purpose
or goal
functional group A permanent group created by the organization to accomplish a number of
organizational purposes with an unspecified time
horizon informal or interest group Created by its members for purposes that may or may not be
relevant to those of the organization
task group A group created by the organiza  tion to accomplish a relatively narrow range of
purposes within a stated or implied time horizon
team A group of workers that func  tions as a unit, often with little or no supervision, to carry out
work-related tasks, functions, and activities
virtual team Team comprised of people from remote work sites who work together online
Characteristics of Groups and Teams
roles The parts individuals play in groups in helping the group reach its goals
role structure The set of defined roles and interrelationships among those roles that the group
members define and accept
role ambiguity Arises when the sent role is unclear and the individual does not know what is
expected of him or her
role conflict Occurs when the messages and cues composing the sent role are clear but
contradictory or mutu  ally exclusive
role overload Occurs when expectations for the role exceed the individual’s capabilities to
perform
Behavioral Norms
norms Standards of behavior that the group accepts for and expects of its members
socialization Generalized norm conformity that occurs as a person makes the transition from
being an out  sider to being an insider in the organization
Cohesiveness
cohesiveness The extent to which members are loyal and committed to the group; the degree of
mutual attractiveness within the group
informal leader A person who engages in leader  ship activities but whose right to do so has not
been formally recognized by the organization or group
conflict A disagreement among two or more individuals or groups
negotiation The process in which two or more parties (people or groups) reach agreement on an
issue even though they have different preferences regarding that issue

CHAPTER 20
control The regulation of organizational activities in such a way as to facilitate goal attainment
Types of Control
operations control Focuses on the processes the organization uses to transform resources into
products or services
financial control Concerned with the organiza  tion’s financial resources structural control
Concerned with how the ele  ments of the organization’s struc  ture are serving their intended
purpose
strategic control Focuses on how effectively the organization’s strategies are suc   ceeding in
helping the organiza  tion meet its goals
controller A position in organizations that helps line managers with their control activities
control standard A target against which subsequent performance will be compared
operations control Focuses on the processes the organization uses to transform re   sources into
products or services
preliminary control Attempts to monitor the quality or quantity of financial, physical, human,
and information resources before they actually become part of the system
screening control Relies heavily on feedback processes during the transforma  tion process
postaction control Monitors the outputs or results of the organization after the trans  formation
process is complete
financial control Concerned with the organiza  tion’s financial resource
bureaucratic control A form of organizational con  trol characterized by formal and mechanistic
structural arrangements
decentralized control An approach to organizational control based on informal and organic
structural arrangements
strategic control Control aimed at ensuring that the organization is maintaining an effective
alignment with its environment and moving toward achieving its strategic goals

CHAPTER 21
operations management The total set of managerial activities used by an organization to
transform resource inputs into products, services, or both
product-service mix How many and what kinds of products or services (or both) to offer
capacity The amount of products, services, or both that can be produced by an organization
facilities The physical locations where products or services are created, stored, and distributed
location The physical positioning or geographic site of facilities
layout The physical configuration of facilities, the arrangement of equipment within facilities, or
both
product layout A physical configuration of facili  ties arranged around the product; used when
large quantities of a single product are needed
process layout A physical configuration of facili  ties arranged around the process; used in
facilities that create or process a variety of products
fixed-position layout A physical configuration of facilities arranged around a single work area;
used for the manufacture of large and com  plex products such as airplanes
supply chain management The process of managing operations control, resource acquisition, and
inventory so as to improve overall efficiency and effectiveness
nventory control Managing the organization’s raw materials, work in process, finished goods,
and products in transit
just-in-time (JIT) method An inventory system that has necessary materials arriving as soon as
they are needed (just in time) so that the production process is not interrupted
Malcolm Baldrige Award Named after a former secre  tary of commerce, this presti   gious
award is given to firms that achieve major quality improvements
total quality management (TQM) (quality assurance) A strategic commitment by top
management to change its whole approach to business in order to make quality a guiding factor in
everything it does
value-added analysis The comprehensive evaluation of all work activities, materials flows, and
paperwork to deter  mine the value that they add for customers
benchmarking The process of learning how other firms do things in an exceptionally high-quality
manner
outsourcing Subcontracting services and operations to other firms that can perform them more
cheaply or better
cycle time The time needed by the organiza  tion to accomplish activities such as developing,
making, and distributing products or services
ISO 9000:2000 A set of quality standards created by the International Organization for
Standardization and revised in 2000
ISO 14000 A set of standards for environ  mental performance
statistical quality control (SQC) A set of specific statistical tech  niques that can be used to
moni  tor quality; includes acceptance sampling and in-process sampling
productivity An economic measure of efficiency that summarizes what is produced relative to
resources used to produce it

CHAPTER 22
knowledge workers Specialists, usually professionally trained and certified—engineers,
scientists, information technology specialists, psychologists—who rely on information technology
to design new products or create new business processes
transaction-processing system (TPS) Application of information pro  cessing for basic day-to-
day busi  ness transactio
management information system (MIS) Support managers by providing daily reports, schedules,
plans, and budgets
decision support system (DSS) An interactive system that lo  cates and presents information
needed to support the decision  making process
executive support system (ESS) A quick-reference, easy-access application of information
systems specially designed for instant access by upper-level managers
artificial intelligence (AI) The construction of computer systems, both hardware and soft   ware,
to imitate human behavior, that is, to perform physical tasks, use thought processes, and learn
Internet A gigantic network of networks serving millions of computers; offering information on
business, science, government, and other topics; and providing communi   cations flows among
networks around the world
Internet service provider (ISP) A commercial firm that maintains a permanent connection to the
Net and sells temporary connec  tions to subscribers
World Wide Web (WWW) A system with universally ac  cepted standards for storing,
retrieving, formatting, and dis  playing information
web browser The software that enables the user to access information on the web
intranet A communications network simi  lar to the Internet but operating within the boundaries
of a single organization
extranet A communications network that allows selected outsiders lim   ited access to an
organization’s internal information system, or intranet
firewall Software and hardware system that allows employees access to both the Internet and
the company’s internal computer network while barring access by outsiders