. MANAGEMENTAND ORGANISATIONALBEHAVIOURLAURIE J. MULLINSSEVENTH EDITION Additional student support at www.booksites.net/mullins 2.

. MANAGEMENT ANDORGANISATIONAL BEHAVIOUR Visit the Management and Organisational Behaviour, Seventh Edition Companion Website at www.booksites.net/mullins to find valuable student learning material including: Multiple choice and short answer questions to help test your learning Technology Solutions short web articles which explore further the managerial implications of technology Weblinks to relevant sites on the web An online glossary to explain key terms 3. About the authorLaurie J. Mullins was formerly principal lecturer at The Business School, Universityof Portsmouth. Before taking early retirement, Laurie specialised in managerialand organisational behaviour, and managing people at work, and was subjectleader for the behavioural and human resource management group. Laurie had previous experience of business, local government and universityadministration and human resource management. For a numbr of years he wasalso a member of, and an instructor in, the Territorial Army. He has undertaken a range of consultancy work; served as a visiting selectorfor UNAIS and VSO; acted as advisor and tutor for a number of professional andeducational bodies including UNISON Education; and served as an externalexaminer for university degree and postgraduate courses, and for professionalorganisations. Laurie has undertaken a years academic exchange in the ManagementDepartment, University of Wisconsin, USA, and a visiting fellowship at the Schoolof Management, Royal Melbourne Institute of Technology (RMIT) University,Australia, and given invited lectures in The Netherlands and South Africa. Laurieis also author of Hospitality Mangement and Organisational Behaviour.About the contributorsLinda Hicks is a Chartered Occupational Psychologist who specialises inmanagement development and coaching within her consultancy Zest for Change.David Preece is Professor of Technology Management and Organisation Studies inThe Business School, University of Teesside. 4. Seventh Edition MANAGEMENT AND ORGANISATIONAL BEHAVIOUR Laurie J. Mullins Formerly, Principal Lecturer The Business School University of Portsmouth 5. To Pamela And for Kerrie and Tracey, and PaulPearson Education LimitedEdinburgh GateHarlowEssex CM20 2JEEnglandand Associated Companies throughout the worldVisit us on the World Wide Web at:www.pearsoned.co.ukFirst published in 1985 in Great Britain under the Pitman imprintFifth edition published in 1999 by Financial Times Pitman Publishing imprintSixth edition 2002Seventh edition 2005 Laurie J Mullins 1985, 1989, 1993, 1996, 1999, 2002, 2005 Chapter 9 Linda Hicks 1993, 1996, 1999, 2002, 2005 Chapter 10 Linda Hicks 1999, 2002, 2005 Chapter 17 David Preece 1999, 2002, 2005The right of Laurie J Mullins to be identified as author of this work has been assertedby him in accordance with the Copyright, Designs and Patents Act 1988.All rights reserved. No part of this publication may be reproduced, stored in a retrievalsystem, or transmitted in any form or by any means, electronic, mechanical,photocopying, recording, or otherwise, without either the prior written permission of thepublisher, or a licence permitting restricted copying in the United Kingdom issued by theCopyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP.All trademarks used herein are the property of their respective owners. The use of anytrademark in this text does not vest in the author or publisher any trademark ownershiprights in such trademarks, nor does the use of such trademarks imply any affiliation withor endorsement of this book by such owners.ISBN 0 273 68876 6British Library Cataloguing-in-Publication DataA catalogue record for this book is available from the British Library.Library of Congress Cataloging-in-Publication DataMullins, Laurie J. Management and organisational behaviour /

Laurie J. Mullins.--7th ed. p. cm Includes bibliographical references and index. ISBN 0273 68876-6 (pbk.) 1. Organizational behavior. I. Title HD58.7.M85 2004 658--dc22 200404691910 9 8 7 6 5 4 3 209 08 07 06 05Typeset by 30 in Stone SerifPrinted and bound by Mateu-Cromo, Artes Graficas, SpainThe publishers policy is to use paper manufactured from sustainable forests. 6. CONTENTS IN BRIEFPart 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR 1 1 Introduction 3 2 The Nature of Organisational Behaviour 25 3 Approaches to Organisation and Management 65Part 2 THE ORGANISATIONAL SETTING 111 4 The Nature of Organisations 113 5 Organisational Goals, Strategy and Responsibilities 144Part 3 THE ROLE OF THE MANAGER 187 6 The Nature of Management 189 7 Managerial Behaviour and Effectiveness 236 8 The Nature of Leadership 280Part 4 THE INDIVIDUAL 333 9 Individual Differences 33510 The Nature of Learning 38911 The Process of Perception 43412 Work Motivation and Rewards 470Part 5 GROUPS AND TEAMWORK 51513 The Nature of Work Groups and Teams 51714 Working in Groups and Teams 554Part 6 ORGANISATIONAL STRUCTURES 59315 Organisation Structure and Design 59516 Patterns of Structure and Work Organisation 63317 Technology and Organisations 662Part 7 MANAGEMENT OF HUMAN RESOURCES 69718 Job Satisfaction and Work Performance 69919 Human Resource Management 74620 Resourcing the Organisation 795Part 8 IMPROVING ORGANISATIONAL PERFORMANCE 82921 Organisational Control and Power 83122 Organisation Development (Culture, Conflict and Change) 88723 Management Development and Organisational Effectiveness 941 7. OH, GREAT SPIRIT,GRANT THAT I MAY NOTCRITICISE MY NEIGHBOURSUNTIL I HAVE WALKED A MILEIN THEIR MOCCASINS.Traditional Native-American saying 8. CONTENTS IN DETAILExhibits, Management in Action, Case Studies and 3 Approaches to Organisation andBusiness Press xiv Management 65In acknowledgement and appreciation xvii Management theory 66Publishers acknowledgements xviii Developments in management and organisationalGuided tour of the book xx behaviour 66Guided tour of the Companion Website xxii The classical approach 67 Scientific management 69 Relevance of scientific management 71Part 1 Bureaucracy 74MANAGEMENT AND ORGANISATIONAL Criticisms of bureaucracy 75BEHAVIOUR Evaluation of bureaucracy 76 Structuralism 781 Introduction 3 The human relations approach 78About this book 4 Evaluation of the human relations approach 80The aims of this book 4 Neo-human relations 81The seventh edition 6 The systems approach 82Your study of the book 16 The contingency approach 84The changing nature of work organisation 17 Other approaches to the study of organisations 84The study of management and organisational The decision-making approach 85 behaviour 19 Social action 85The use of case studies 20 A number of different approaches 87 Postmodernism 872 The Nature of Organisational Relevance to management and organisational behaviour 89 Behaviour 25 Japanese management 90The meaning of organisational behaviour 26 Towards a scientific value approach? 91Influences on behaviour in organisations 27 Benefits to the manager 93Behavioural science a multidisciplinary approach 29 Management in Action 3.1: Japanese management 95The importance of people and organisational Case study 3.1: Helgaton Ltd: organisational theory behaviour 30 in practice 102Organisational metaphors 32Orientations to work and the work ethic 33Management as an integrating activity 34The psychological contract 37 Part 2Changing nature of the psychological contract 39 THE ORGANISATIONAL SETTINGOrganisational practices 40The Peter Principle 40Parkinsons Law 41 4 The Nature of

Organisations 113The need for a cross-cultural approach 42Is organisational behaviour culturebound? 43 The context of the organisation 114Models for understanding the impact of culture 44 The formal organisation 115Five dimensions of culture: the contribution of Basic components of an organisation 117 Hofstede 47 Private and public sector organisations 118Cultural diversity: the contribution of Trompenaars 49 Production and service organisations 120Summary: convergence or culture-specific Types of authority and organisations 121 organisational behaviour 51 The classification of organisations 122Case study 2.1: Eric and Kipsy: complexities of Prime beneficiary of the organisation 122 management and organisational behaviour 56 Primary activity of the organisation 123 9. viii CONTENTS IN DETAIL The organisation as an open system 124 Principles of management 197 Interactions with the environment 126 Management as a social process 199 The comparative study of organisations 127 The tasks and contribution of a manager 199 Organisational sub-systems 128 Essential nature of managerial work 200 The analysis of work organisations 129 The efforts of other people 202 Contingency models of organisation 131 Management in service industries 203 The influence of technology 132 Management in private enterprise and public Information technology 133 sector organisations 203 Managing technical change 134 The work of a manager 206 The informal organisation 134 Managerial roles 207 The organisation of the future 137 Behaviour pattern of general managers 209 Organisational goals 137 Determining what real managers do 210 Patterns of managerial work and behaviour 210 5 Organisational Goals, Strategy and The attributes and qualities of a manager 211 Managers of the future? 214 Responsibilities 144 Management in Action 6.1: The roles of the The nature of organisational goals 145 manager and the Individual Management Model 217 The functions of goals 146 Case study 6.1: What is management? Defining Integration of goals 147 the managers role 227 Classification of organisational goals 148 Alteration of goals 149 Organisational ideologies and principles 150 7 Managerial Behaviour and Mission statements 151 Effectiveness 236 Managerial style and behaviour 237 Objectives and policy 152 Managers attitude towards people 238 The profit objective 154 Japanese Theory Z environment 240 Fallacy of the single objective 155 The Managerial/Leadership Grid 241 The need for strategy 157 Framework for patterns of behaviour 243 The concept of synergy 158 Management systems 245 SWOT analysis 159 System 4 management 246 The management of opportunities and risks 160 Management by Objectives (MBO) 249 Social responsibilities of organisations 161 Evaluation of MBO 250 Codes of conduct 162 Managing people 251 Organisational stakeholders 163 Basic managerial philosophies 252 Values and ethics 166 Choice of managerial style 256 Corporate social responsibility 167 Managerial effectiveness 259 Business ethics 168 Measures of effectiveness 261 Related legislation 170 3-D model of managerial behaviour 261 An integrated approach 171 General criteria of managerial effectiveness 264 Management in Action 5.1: IBM Code of Conduct 177 The management of time 265 Case study 5.1: Mergers and acquisitions: the Case example: Chemical company 274 consequences of expansion at Square Deal plc 182 Case study 7.1: Bringing management to book: Case study 5.2: Welcome to the party: home selling how to manage a library 275 with Top-to-Toe 183 Case study 7.2: As safe as houses: branch management in a building society 276 Part 3 8 The Nature of Leadership 280 THE ROLE OF THE MANAGER The meaning of leadership 281 The importance of leadership 282 Leadership and management 283 6 The Nature of Management 189 Approaches to leadership 285 The meaning of management 190 The qualities or traits approach 287 Management and administration 194 The functional (or group) approach 287 The process of management 195 Leadership as a behavioural category 289

 10. CONTENTS IN DETAIL ixStyles of leadership 291 Career development 372Continuum of leadership behaviour 292 Leadership, management and women 376The situational approach 294 Positive approaches 378Contingency theories of leadership 295Fiedlers contingency model 295 10 The Nature of Learning 389Vroom and Yetton contingency model 297 By Linda HicksThe Vroom and Jago revised decision model 298 The meaning and nature of learning 390Pathgoal theory 299 Organisations and the management of learning 394Readiness of the followers or group 300 Knowledge management 395Transformational leadership 301 The learning organisation 399Inspirational leadership 304 How do people learn? 402Power and leadership influence 306 Behaviourism 403The leadership relationship 307 The outcomes of learning 405No one best form of leadership 309 Operant conditioning 405National cultural dimensions of leadership 310 Social learning 408Effectiveness of leadership styles 312 Limitations of the behaviourist school 408Variables affecting leadership effectiveness 313 Cognitive theories 409Leadership development 314 Learning styles 413Leaders of the future 315 Complex models of learning 414Management in Action 8.1: Autoglass: Leadership Creativity 415 success factors 317 Facilitating learning 417Management in Action 8.2: IBM Leadership Learning theory applied to study skills 420 Development Centre (LDC) 318 Applications of learning theory to organisations 420Case study 8.1: The paradox of Pim Fortuyn: a study Case study 10.1: Springboard to success: staff in charismatic leadership 327 development in practice 425 Case study 10.2: Will the mail get through: managing change at the Royal Mail 427PART 4 11 The Process of Perception 434THE INDIVIDUAL By Laurie Mullins and Linda Hicks The perceptual process 435 Selectivity in attention and perception 4359 Individual Differences 335 Meaning to the individual 437 By Linda Hicks Internal factors 437The changing nature and scope of managing External factors 440 individuals at work 336 Organisation and arrangement of stimuli 441Personality 339 Perceptual illusions 442Nomothetic and idiographic approaches 342 Perceiving other people 445Theoretical approaches: nomothetic 343 Transactional analysis 448Theoretical approaches: idiographic 346 Selection and attention 450Other theoretical approaches 347 Organisation and judgement 452Cognitive theory: Kellys personal construct theory 350 The importance of body language 453Applications within the work organisation 352 Attribution theory 455Stress and the individual 354 Perceptual distortions and errors 456Ability 355 Stereotyping 457Testing 360 The halo effect 458Attitudes 362 Perceptual defence 459Gender and organisations 366 Projection 459Understanding womens position and status 368 Illustrative example: perception of women 459Economic theories 369Psychological sex differences 369 12 Work Motivation and Rewards 470The socialisation process 370 The meaning of motivation 471Orientations and motivations towards work 370 Needs and expectations at work 472Working practices 371 Motivation and organisational performance 474 11. x CONTENTS IN DETAIL Frustration-induced behaviour 475 14 Working in Groups and Teams 554 Money as a motivator 477 Interactions among members 555 Theories of motivation 478 Belbins team-roles 556 Content theories of motivation 480 Patterns of communication 559 Maslows hierarchy of needs theory 478 Analysis of individual behaviour 562 Alderfers modified need hierarchy model 484 Sociometry 562 Herzbergs two-factor theory 485 Interaction analysis 563 McClellands achievement motivation theory 487 Frameworks of behavioural analysis 565 Process theories of motivation 489 An essential feature of work organisations 566 Vrooms expectancy theory 490 Individual compared with group or team performance 569 The Porter and Lawler expectancy model 492 Lawlers revised expectancy model 494 The risky-shift phenomenon 569 Implications for managers of expectancy theories 495 Groupthink 570 Equity theory of motivation 496 Brainstorming 570 Goal theory 498

Group dynamics 573 Attribution theory 499 T-groups 574 Relevance of theories of motivation 499 Effective teamworking 575 Cross-cultural dimensions of motivation 500 Management in Action 14.1: Profiling of managers for The motivation of knowledge workers 500 leadership development in a cross-section of South Management in Action 12.1: Developing reward African organisations 579 strategies to motivate and compensate Management in Action 14.2: Barriers come down knowledge workers 504 to build up team spirit 585 Case study 12.1: Staff motivation: not so much a motivational pyramid, more a slippery slope 510 PART 6 PART 5 ORGANISATIONAL STRUCTURES GROUPS AND TEAMWORK 15 Organisation Structure and Design 595 13 The Nature of Work Groups The meaning and nature of organisation structure 596 and Teams 517 The importance of good structure 597 The meaning and importance of groups and teams 518 Levels of organisation 598 The difference between groups and teams 518 The importance of the hierarchy 600 Group values and norms 520 The design of organisation structure 601 The importance of teamwork 521 Clarification of objectives 603 Formal and informal groups 525 Task and element functions 604 Reasons for formation of groups or teams 527 The division of work 605 Group cohesiveness and performance 528 Centralisation and decentralisation 608 Membership 529 Principles of organisation 609 Work environment 530 Span of control 610 Organisational factors 531 The chain of command 611 Group development and maturity 531 Flatter organisation structures 612 Potential disadvantages of strong, cohesive groups 532 Formal organisational relationships 613 Characteristics of an effective work group 533 Line and staff organisation 615 The effects of technology on work groups 534 The inverted organisation 617 Role relationships 536 Role conflict 538 Project teams and matrix organisation 617 Role stress 540 Effects of a deficient organisation structure 619 Management in Action 13.1: Teamwork in a small Organisation charts 621 company 543 Structure and organisational behaviour 622 Management in Action 13.2: Remote control a Case study 15.1: A small cog in a big wheel: case study 545 company restructuring at Zeton 629 Case study 13.1: Floating on air: the importance Case study 15.2: Loud and clear: leadership in of teamwork at Hovertec 550 telecommunications 630 12. CONTENTS IN DETAIL xi16 Patterns of Structure and Work Stress at work 706 Organisation 633 Role relationships and conflict 708Variables influencing organisation structure 634 Levels of stress 709The contingency approach 634 Coping with stress 710Size of organisation 635 Work organisation and job design 713 Individual job redesign 714Technology 638 A comprehensive model of job enrichment 715The Woodward study 638 Broader organisational approaches to improvedMajor dimensions of technology: the work of Perrow 640 job design 717Environment 641 The work/life balance 720The Burns and Stalker study 642 Employee involvement 722Mixed forms of organisation structure 643 Empowerment and job satisfaction 723The Lawrence and Lorsch study 644 Self-managed work groups 723Evaluation of the contingency approach 646 Flexible working arrangements 724Contribution of contingency theory 648 Quality circles 727Culture as a contingent factor 649 Management style and culture 728Alternative forms of structure 649 Contextual factors in job design 728The demand for flexibility 651 The happy/productive worker 729Telecommuting 652 Management in Action 18.1: Job satisfaction: theThe shamrock organisation 652 fit between expectations and experiences 732The nature of delegation and empowerment 654 Management in Action 18.2: An elusive butCase study 16.1: Bureaucracy could seriously damage expensive concept: stress 733 your health: staff empowerment at City Hospital 658 Management in Action 18.3: Work-Life BalanceCase study 16.2: Could I have an estimate? case studies 735 Organisational structure at Fabrique Dcor 658 Management in Action 18.4: Beyond the nine-to-five 73617 Technology

and Organisations Case study 18.1: The wide open spaces: linking By David Preece 662 job satisfaction and work performance 741Theorising technology 663 Case study 18.2: The changing role of supervisors:Using a socio-technical ensemble perspective: demonstrating the effect of communication the case of Butler Co. 669 and training on morale 742Technological change and organisations 672 Case study 18.3: Flying like the wind: motivation,Adopting and introducing new technology 674 job design and culture at Falcon Car Company 743Case studies in technological/organisational change 679 19 Human Resource Management 746 The nature of human resource management (HRM) 747Case study 17.1: A thirst for technology: new systems HRM policies, activities and functions 749 at the bars of Tawny Taverns 679 Organisation of the HRM function 751Case study 17.2: Web page not found: internal HRM: a shared responsibility 752 communications at Redstart Computers 682 The importance of HRM 755Organisational contexts, social and political Training and development 756 processes and technological change 685 The management of training 758ICTs, networks, organisations and society 686 Investors in People 761 Performance appraisal 762 Questions to be addressed 764PART 7 360 feedback and upward appraisal 765MANAGEMENT OF HUMAN RESOURCES Establishing the appraisal system 766 Methods of appraisal 767 Potential problem areas 76918 Job Satisfaction and Work Employment relations 771 Performance 699 Unitary and pluralistic perspectives 773The meaning and nature of job satisfaction 700 Regulating the employment contract 774Dimensions of job satisfaction 700 Responsibility for employment relations 777Framework of study 703 International dimensions of HRM 778Information communications technology 703 Industrial democracy in European countries 779 13. xii CONTENTS IN DETAIL The German system 779 Characteristics of an effective control system 842 Effectiveness of the HRM function 780 Power and management control 843 Management in Action 19.1: The Investors in People Perspectives of organisational power 845 Standard 783 Pluralistic approaches to power 846 Management in Action 19.2: Performance The balance between order and flexibility 848 management at Autoglass Limited 786 Delegation and empowerment 849 Case study 19.1: Beer and sandwiches: personnel The managersubordinate relationship 850 management at London Taverns 790 Benefits of delegation 852 Case study 19.2: Nothing succeeds like success: Reasons for lack of delegation 853 accelerating performance at Sisson Systems 791 A systematic approach to delegation 854 The art of delegation 857 20 Resourcing the Organisation 795 The concept of empowerment 859 The concern of all managers 796 Does empowerment deliver? 863 Human resource planning 796 Behavioural factors in control systems 864 The value of human resource planning 798 Overcoming resistance to management control 865 Recruitment and selection of staff 800 Financial and accounting systems of control 867 Job analysis 802 Management in Action 21.1: Empowerment 873 Person specifications 804 Case study 21.1: The enthusiastic delegator: Difficulties and distastes of the job 804 the consequences of promoting beyond ability? 880 The importance of job analysis 806 Case study 21.2: Alpha to Omega: the effects Attracting suitable applicants 806 of financial management on company The selection process 808 performance 883 Selection tests and questionnaires 810 Group exercises 810 22 Organisation Development The selection interview 812 (Culture, Conflict and Change) 887 Interviewing style 813 The meaning of organisation development 888 Competency-based approach to recruitment and Topics associated with OD 888 selection 814 Organisational culture 891 The selection decision 815

Types of organisational culture 892 Induction and follow-up 816 Influences on the development of culture 894 Costs of the selection process 817 The cultural web 895 Effectiveness of the recruitment and selection The importance of culture 896 process 817 Organisational climate 899 Management in Action 20.1: Marks & Spencer Employee commitment 901 PLCs graduate selection process 821 Organisational conflict 903 Case study 20.1: Please enter your password: Contrasting views of conflict 904 effective resource management at Wessex The sources of conflict 906 Computers 825 Strategies for managing conflict 908 Case study 20.2: Inky fingers: HRM failure at The nature of organisational change 909 Sumprint Ltd 826 Planned organisational change 910 Resistance to change 913 The management of organisational change 915 Human and social factors of change 916 PART 8 Responsibilities of top management 920 IMPROVING ORGANISATIONAL Management in Action 22.1: Organisational