LAURIE J. MULLINS

MANAGEMENT & ORGANISATIONAL BEHAVIOURNINTH EDITION

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MANAGEMENT & ORGANISATIONAL BEHAVIOUR LAURIE J. MULLINSNINTH EDITION

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About the author

Laurie Mullins was formerly principal lecturer at the University of PortsmouthBusiness School. Laurie specialised in managerial and organisational behaviour,and managing people at work, and was subject leader for the behavioural andhuman resource management group.

Laurie has experience of business, local government and university administrationand human resource management. For a number of years he was also a memberof, and an instructor in, the Territorial Army. He has undertaken a range ofconsultancy work including with the United Nations Association InternationalService (UNAIS); served as a visiting selector for Voluntary Service Overseas( VSO); acted as adviser and tutor for a number of professional and educationalbodies including UNISON Education; and served as an external examiner foruniversity degree and postgraduate courses, and for professional organisations.

Laurie has undertaken a year’s academic exchange in the ManagementDepartment, University of Wisconsin, USA and a visiting fellowship at the Schoolof Management, Royal Melbourne Institute of Technology University, Australia, and is a visiting lecturer in the Netherlands. Laurie is also author of HospitalityManagement and Organisational Behaviour and Essentials of OrganisationalBehaviour, both published by Pearson Education.

MANAGEMENT &ORGANISATIONAL BEHAVIOURNINTH EDITION

LAURIE J. MULLINS

With Gill ChristyPrincipal Lecturer in the Department of Human Resource and Marketing Management at the University of Portsmouth Business School

Pearson Education Limited

Edinburgh GateHarlowEssex CM20 2JEEngland

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First published in 1985 in Great Britain under the Pitman imprintFifth edition published in 1999 by Financial Times Pitman PublishingSeventh edition 2005Eighth edition 2007Ninth edition 2010

© Laurie J. Mullins 1985, 1989, 1993, 1996, 1999, 2002, 2005, 2007, 2010Chapters 4, 6 © Linda Carter and Laurie J. Mullins 1993, 1996, 1999, 2002, 2005, 2007Chapter 5 © Linda Carter 1993, 1996, 1999, 2002, 2005, 2007Chapter 16 © Peter Scott 2010Chapter 17 © David Preece 1999, 2002, 2005, 2007

The right of Laurie J. Mullins to be identified as author of this work has been asserted byhim in accordance with the Copyright, Designs and Patents Act 1988.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system,or transmitted in any form or by any means, electronic, mechanical, photocopying, recordingor otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd,Saffron House, 6–10 Kirby Street, London, EC1N 8TS.

All trademarks used herein are the property of their respective owners. The use of 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.

Pearson Education is not responsible for content of third party internet sites.

ISBN: 978-0-273-72408-7

British Library Cataloguing-in-Publication DataA catalogue record for this book is available from the British Library

Library of Congress Cataloging-in-Publication DataA catalog record for this book is available from the Library of Congress

10 9 8 7 6 5 4 3 2 114 13 12 11 10

Typeset in 9.5/12 pt Giovanni by 35Printed and bound by Rotolito Lombarda, Italy

The publisher’s policy is to use paper manufactured from sustainable forests.

To my wife Pamelaand for Nathan

vii

Contents in detail ixManagement in the news and case studies xvAbout this book xixGuided tour of the book xxiiGuided tour of MyManagementLab xxvIn acknowledgement and appreciation xxviiPublisher’s acknowledgements xxviii

Part 1 THE ORGANISATIONAL SETTING 1

Chapter 1 The Nature of Organisational Behaviour 2Chapter 2 Approaches to Organisation and Management 41Chapter 3 The Nature and Context of Organisations 77

Part 2 THE INDIVIDUAL 127

Chapter 4 Individual Differences and Diversity 128Chapter 5 The Nature of Learning 171Chapter 6 Perception and Communication 208Chapter 7 Work Motivation and Job Satisfaction 252

Part 3 GROUPS, TEAMS AND LEADERSHIP 305

Chapter 8 The Nature of Work Groups and Teams 306Chapter 9 Working in Groups and Teams 341Chapter 10 The Nature of Leadership 372

Part 4 THE NATURE OF MANAGEMENT 423

Chapter 11 The Role of the Manager 424Chapter 12 Managerial Behaviour and Effectiveness 456Chapter 13 Human Resource Management 493

Part 5 STRUCTURES OF ORGANISATION 541

Chapter 14 Organisation Strategy and Structure 542Chapter 15 Patterns of Structure and Work Organisation 585Chapter 16 Technology and Organisations 621

Part 6 ORGANISATION MANAGEMENT 663

Chapter 17 Organisational Control and Power 664Chapter 18 Corporate Responsibility and Ethics 704Chapter 19 Organisation Culture and Change 736Chapter 20 Organisational Performance and Effectiveness 775

Conclusion 819Glossary 822Index 835

CONTENTS IN BRIEF

Management & Organisational Behaviour, Ninth Edition

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ix

CONTENTS IN DETAIL

Management in the news and case studies xvAbout this book xixGuided tour of the book xxiiGuided tour of MyManagementLab xxvIn acknowledgement and appreciation xxviiPublisher’s acknowledgements xxviii

Part 1THE ORGANISATIONAL SETTING

1 The Nature of Organisational Behaviour 2

The meaning of organisational behaviour 3The study of organisational behaviour 3A framework of study 4Influences on behaviour 6A multidisciplinary approach 8Organisational metaphors 9Orientations to work and the work ethic 10Management as an integrating activity 12The psychological contract 14Organisational practices 18The Peter Principle 18Parkinson’s Law 19The changing world of work organisations 20Globalisation and the international context 22A cross-cultural approach to management 24Is organisational behaviour culture-bound? 26Five dimensions of culture: the contribution of Hofstede 27Cultural diversity: the contribution of Trompenaars 28Emerging frameworks for understanding culture 31Convergence or culture-specific organisational

behaviour 31The importance of organisational behaviour 32Synopsis 32Review and discussion questions 33Management in the news: A melting pot for forging

success 34Assignments 1 and 2 35Personal awareness and skills exercise 35Case study: Virgin Atlantic and Ryanair 36Notes and references 39

2 Approaches to Organisation andManagement 41

Theory of management 42Developments in management and organisational

behaviour 42

The classical approach 43Scientific management 45Relevance of scientific management 47Bureaucracy 49Criticisms of bureaucracy 50Evaluation of bureaucracy 51Structuralism 53The human relations approach 53Evaluation of the human relations approach 55Neo-human relations 56The systems approach 57The contingency approach 59Other approaches to the study of organisations 59The decision-making approach 59Social action 61A number of approaches 62Postmodernism 64Relevance to management and organisational

behaviour 65Towards a scientific value approach? 67Benefits to the manager 67Synopsis 68Review and discussion questions 69Management in the news: The story of the

middleman 70Assignment 71Personal awareness and skills exercise 72Case study: Dell Computers: the world at your

fingertips 72Notes and references 74

3 The Nature and Context of Organisations 77

Perspectives of the organisation 78The formal organisation 79Basic components of an organisation 80Private and public sector organisations 82Social enterprise organisations 83Production and service organisations 84Types of authority and organisations 86The classification of organisations 86The organisation as an open system 88Interactions with the environment 90The comparative study of organisations 92The analysis of work organisations 92Contingency models of organisation 94The informal organisation 94Organisational conflict 96

CONTENTS IN DETAIL

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Contrasting views of conflict 97Positive and negative outcomes 98The sources of conflict 99Strategies for managing conflict 101Organisational stress 103Is stress necessarily to be avoided? 104Causes of stress 105Coping with stress 106The work/life balance 109The organisation of the future 111Synopsis 113Review and discussion questions 113Management in the news: Watch out for

an epidemic of petty fraud 114Assignments 1 and 2 115Personal awareness and skills exercise 116Case study: Grameen Bank: a case of applied

business ethics 117Notes and references 119

Academic viewpoint 121

Part 1 Case studyCadbury: organisation, culture and history 122

Part 2THE INDIVIDUAL

4 Individual Differences and Diversity 128

The recognition of individuality 129How do individuals differ? 129Personality 130Nomothetic and idiographic approaches 130Nomothetic personality theories 133Idiographic theoretical approaches 135Complementary approaches 136Applications within the work organisation 138Emotions at work 139Type A and Type B personalities 140Ability 141Emotional intelligence (EI) 144Attitudes 145Attitude change 148Testing and assessment 149Diversity management 151The business case for diversity 153Diversity training 157Top performing organisations 158Criticisms and limitations 160Diversity, gender and organisations 161Synopsis 162Review and discussion questions 163Management in the news: The Apprentice,

week nine 163Assignment 164Personal awareness and skills exercise 165

Case study: B&Q: the business case for diversity 166Notes and references 168

5 The Nature of Learning 171

The meaning and nature of learning 172Organisations and the management of learning 175How do people learn? 176Behaviourism 177Operant conditioning 178Social learning 181Limitations of the behavioural theories 181Cognitive theories 182Learning styles 182Knowledge management 187Emerging technologies and learning 190Problems of managing knowledge 192Creativity 193Facilitating learning 196Learning theory applied to study skills 198Applications of learning theory to organisations 199Synopsis 199Review and discussion questions 200Management in the news: UK follows Dutch

example with site simulations 200Assignments 1 and 2 201Personal awareness and skills exercise 202Case study: VSO 203Notes and references 205

6 Perception and Communication 208

The perceptual process 209Selectivity in attention and perception 209Internal factors 212Cultural differences 214External factors 217Organisation and arrangement of stimuli 218Perceptual illusions 221Selection and attention 222Organisation and judgement 223Connection of the conscious, unconscious and

physiology 225Perceiving other people 226Non-verbal communication and body language 230Interpersonal communications 231Neuro-linguistic programming (NLP) 234Transactional analysis (TA) 235Attribution theory 237Perceptual distortions and errors 239Stereotyping 239The halo effect 240Perceptual defence 241Projection 241Self-fulfilling prophecy 241Understanding the organisational process 242Synopsis 243Review and discussion questions 244

CONTENTS IN DETAIL

xi

Management in the news: How to be happy in life: let out your anger 245

Assignments 1 and 2 246Personal awareness and skills exercise 247Case study: Behavioural economics 248Notes and references 250

7 Work Motivation and Job Satisfaction 252

The meaning of motivation 253Needs and expectations at work 254Money as a motivator 255Broader intrinsic motivation 256Frustration-induced behaviour 257Theories of motivation 259Content theories of motivation 260Maslow’s hierarchy of needs theory 260Alderfer’s modified need hierarchy model 264Herzberg’s two-factor theory 265McClelland’s achievement motivation theory 267Process theories of motivation 268Vroom’s expectancy theory 269The Porter and Lawler expectancy model 271Lawler’s revised expectancy model 273Implications for managers of expectancy theories 274Equity theory of motivation 275Goal theory 276Attribution theory 278Relevance today for the manager 278Organisational behaviour modification 278The motivation of knowledge workers 280Cross-cultural dimensions of motivation 281Job satisfaction 282Alienation at work 285A comprehensive model of job enrichment 285Contextual factors in job design 289Synopsis 289Review and discussion questions 290Management in the news: Top marks for the best

employee awards 291Assignments 1 and 2 292Personal awareness and skills exercise 292Case study: Don’t get mad, get on-line! 293Notes and references 296

Academic viewpoint 298

Part 2 Case studyPhilanthropy: the resurgence of personal socialresponsibility? 299

Part 3GROUPS, TEAMS AND LEADERSHIP

8 The Nature of Work Groups and Teams 306

The meaning and importance of groups and teams 307Differences between groups and teams 307

Group values and norms 309Formal and informal groups 311Reasons for formation of groups or teams 313Group cohesiveness and performance 314Membership 314Work environment 316Organisational 317Group development and maturity 317Social identity theory 319Potential disadvantages of strong, cohesive

groups 320Characteristics of an effective work group 321The effects of technology 321Virtual teams 322Role relationships 326Role conflict 328The importance of teamwork 331Synopsis 333Review and discussion questions 334Management in the news: Dragon boat racing on

the Thames 335Assignments 1 and 2 336Personal awareness and skills exercise 336Case study: Mumbai’s dabbawalahs: a world-class

quality service 337Notes and references 339

9 Working in Groups and Teams 341

Interactions among members 342Belbin’s team roles 342Patterns of communication 344Analysis of individual behaviour 347Sociometry 347Interaction analysis 349Frameworks of behavioural analysis 350Balance between the team and the individual 351Individual compared with group or team

performance 353Brainstorming 355Quality circles 357Group dynamics 358Self-managed work groups 360Building successful teams 361Synopsis 364Review and discussion questions 365Management in the news: Falling down 366Assignments 1 and 2 366Personal awareness and skills exercise 367Case study: Top Gear 368Notes and references 370

10 The Nature of Leadership 372

The meaning of leadership 373Leadership or management? 373Approaches to leadership 375The qualities or traits approach 375

CONTENTS IN DETAIL

xii

The functional (or group) approach 377Action-centred leadership 378Leadership as a behavioural category 379Styles of leadership 380Continuum of leadership behaviour 381Contingency theories of leadership 383Fiedler’s contingency model 384Vroom and Yetton contingency model 386The Vroom and Jago revised decision model 387Path–goal theory 387Readiness of the followers or group 389Transformational leadership 391Inspirational or visionary leadership 392Leadership and innovation 396The leadership relationship 397Leadership effectiveness 399Cross-cultural dimensions of leadership 401Leadership development 402No one best form of leadership 404Leaders of the future 405Synopsis 406Review and discussion questions 407Management in the news: Managing the mood

is crucial 407Assignments 1 and 2 408Personal awareness and skills exercise 409Case study: Being Apple: Steve Jobs 411Notes and references 413

Academic viewpoint 416

Part 3 Case studyThe Eden Project 417

Part 4THE NATURE OF MANAGEMENT

11 The Role of the Manager 424

The meaning of management 425The process of management 428Principles of management 429Management as a social process 431The tasks and contribution of a manager 432Essential nature of managerial work 433Management in private enterprise and public

sector organisations 435The work of a manager 436Managerial roles 437Behaviour pattern of general managers 439Determining what real managers do 440Patterns of managerial work and behaviour 441What great managers do 441The attributes and qualities of a manager 442The importance of management skills 443The changing role of managers 446Synopsis 448

Review and discussion questions 449Management in the news: Science of managing

monkeys 449Assignments 1 and 2 450Personal awareness and skills exercise 451Case study: Stuck in the middle? 452Notes and references 454

12 Managerial Behaviour and Effectiveness 456

The importance of managerial style 457Theory X and Theory Y management 458The Managerial/Leadership Grid® 461Management systems 465Management by objectives (MBO) 467Managing with and through people 469The nature of people at work 474Managerial effectiveness 475Measures of effectiveness 476The Management Standards Centre 477The 3-D model of managerial behaviour 478The management of time 480Synopsis 484Review and discussion questions 485Management in the news: When a packed diary

betrays a busy fool 485Assignment 486Personal awareness and skills exercise 487Case study: Effective management: a question

of context? 488Notes and references 491

13 Human Resource Management 493

The nature of human resource management 494Human capital management 495HRM policies, activities and functions 497Organisation of the HRM function 498Working in partnership with line managers 499A strategic business partnering approach 501The importance of HRM 502Training and development 502The management of training 504E-learning 506Investors in People 507Talent management 509Performance management (PM) 510Methods of measurement and review 513360° feedback and upward feedback 514Benefits of performance management 515Employee relations 519Unitary and pluralistic perspectives 520Regulating the employment contract 520International dimensions of HRM 523Effectiveness of the HRM function 525Synopsis 527Review and discussion questions 528

CONTENTS IN DETAIL

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Management in the news: The carrot and stick approach 528

Assignment 529Personal awareness and skills exercise 529Case study: The changing role of HRM 531Notes and references 533

Academic viewpoint 536

Part 4 Case studyJamie Oliver: The Naked Manager? 537

Part 5STRUCTURES OF ORGANISATION

14 Organisation Strategy and Structure 542

The importance of strategy 543SWOT analysis 545Organisational goals 546Objectives and policy 549Dimensions of organisation structure 551The importance of good structure 552Levels of organisation 553Underlying features of organisation structure 555Division of work 557Centralisation and decentralisation 560Principles of organisation 561Span of control 562The chain of command 563The importance of the hierarchy 564Formal organisational relationships 566Project teams and matrix organisation 569Effects of a deficient organisation structure 572Organisation charts 573Empowerment and control 574Synopsis 576Review and discussion questions 577Management in the news: A taxing merger 577Assignments 1 and 2 578Personal awareness and skills exercise 579Case study: Zara: a dedicated follower of fashion 580Notes and references 582

15 Patterns of Structure and WorkOrganisation 585

Variables influencing organisation structure 586The contingency approach 586Size of organisation 588Technology 589The Woodward study 589Major dimensions of technology: the work

of Perrow 593Environment 594The Burns and Stalker study 594‘Mixed’ forms of organisation structure 595The Lawrence and Lorsch study 597

Evaluation of the contingency approach 598Contribution of contingency theory 600Culture as a contingent factor 601The changing face of the workplace 603The demand for flexibility 605The shamrock organisation 608Structure and organisational behaviour 611Synopsis 613Review and discussion questions 614Management in the news: Independents will

always have their day 614Assignments 1 and 2 615Personal awareness and skills exercise 616Case study: John Lewis, Waitrose and Ocado:

distinctively successful 616Notes and references 619

16 Technology and Organisations 621Peter Scott

Why study technology? 622What do we mean by technology? 623Approaches to technology and organisation 625Decision-making processes 629Involvement of HRM specialists and users of

technology 632Technology, work and organisational behaviour 634Skill, work design and job quality 635Centralisation versus decentralisation of control 636Location of work 639Nature of social interactions 642The pace and intensity of work 643The ‘digital divide’ and job security 644Synopsis 645Review and discussion questions 646Management in the news: Should Twitter be

confined to the marketing department? 647Assignment 648Personal awareness and skills exercise 648Case study: Accessible technology: Tesco’s

accessible website 649Notes and references 651

Academic viewpoint 656

Part 5 Case studyCo-operatives 657

Part 6ORGANISATION MANAGEMENT

17 Organisational Control and Power 664

The controversial nature of control 665Expression of managerial behaviour 667Elements of an organisational control system 668Forms of control 669Strategies of control in organisations 671

CONTENTS IN DETAIL

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Characteristics of an effective control system 673Power and management control 675Perspectives of organisational power 676Pluralistic approaches to power 678The balance between order and flexibility 679Behavioural factors in control systems 680Financial and accounting systems of control 681The concept of empowerment 683The manager–subordinate relationship 684Benefits of delegation 686Reasons for lack of delegation 687The art of delegation 688A systematic approach to empowerment and

delegation 689Does empowerment deliver? 692Synopsis 694Review and discussion questions 695Management in the news: The undercover boss 695Assignment 697Personal awareness and skills exercise 698Case study: What you say is what you get . . .? 699Notes and references 701

18 Corporate Responsibility and Ethics 704

Organisational ideologies and principles 705Mission statements 707The profit objective 709The balanced scorecard 711Corporate social responsibilities (CSRs) 712Organisational stakeholders 714The UN Global Compact 716Values and ethics 717Ethics and corporate social responsibility 718Business ethics 721Codes of business conduct (or ethics) 725Synopsis 727Review and discussion questions 728Management in the news: Trade-offs in the

moral maze 728Assignments 1 and 2 729Personal awareness and skills exercise 730Case study: The Fairtrade Foundation 731Notes and references 734

19 Organisation Culture and Change 736

Organisation development, culture and change 737Organisational culture 739Types of organisational culture 740Influences on the development of culture 742The cultural web 743The importance of culture 744

Organisational climate 748Employee commitment 749The nature of organisational change 751Planned organisational change 753Resistance to change 756The management of organisational change 759Overcoming resistance to change 761Synopsis 764Review and discussion questions 765Management in the news: The time is ripe for

fresh ideas 765Assignments 1 and 2 766Personal awareness and skills exercise 769Case study: Moving with the times 770Notes and references 773

20 Organisational Performance andEffectiveness 775

The nature of organisational effectiveness 776The democratic enterprise 778The learning organisation 779Total quality management (TQM) 782Business process re-engineering (BPR) 785The importance of effective management 786The meaning and nature of management

development 787Management development process 789Continuing professional development (CPD) 791The EFQM Excellence Model 792Assessing organisational performance 794A range of different criteria 796Successful organisations and people 799Employee engagement 800The future of work and management 801Synopsis 803Review and discussion questions 804Management in the news: How to manage

the clever squad 804Assignments 1 and 2 805Personal awareness and skills exercise 807Case study: Who says business is boring?

M&S’s rollercoaster ride 808Notes and references 811

Academic viewpoint 813

Part 6 Case studyRiverford Organic 814

Conclusion 819Glossary 822Index 835

MANAGEMENT IN THE NEWS and CASE STUDIES

xv

Chapter 1 The Nature ofOrganisationalBehaviour

Chapter 2Approaches toOrganisation andManagement

Chapter 3The Nature andContext ofOrganisations

Part 1The Organisational Setting

Chapter 4IndividualDifferences andDiversity

Chapter 5The Meaning andNature of Learning

Chapter 6Perception andCommunication

Chapter 7Work Motivationand JobSatisfaction

Part 2The Individual

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245

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291

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299

Managementin the news

Case study

Managementin the news

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Managementin the news

Case study

Longer casestudy

Managementin the news

Case study

Managementin the news

Case study

Managementin the news

Case study

Managementin the news

Case study

Longer casestudy

A melting pot forforging success

Virgin Atlantic andRyanair

The story of themiddleman

Dell Computers: theword at your fingertips

Watch out for anepidemic of petty fraud

Grameen Bank: a caseof applied businessethics

Cadbury: organisation,culture and history

The Apprentice, weeknine

B&Q: The businesscase for diversity

UK follows Dutchexample with sitesimulations

VSO

How to be happy inlife: let out your anger

Behavioural economics

Top marks for the bestemployee awards

Don’t get mad, getonline!

Philanthropy: theresurgence of personalsocial responsibility?

See how a well managed,culturally diverse workforce cancome together to produce a betterproduct

How can two similar organisationsdevelop very differentorganisational cultures?

This examination takes the pulseof the current state of middlemanagement

From small business to globalgiant, Dell Computers mobilisesworkers on three continents to getyour new PC to you

In a tough economy, manycompanies are finding dishonestyand fraud in the workplace on the rise

How ingenuity coupled with enterprise can present an alternativeto charity and government aid as a route out of poverty

The historical context may change organisational practices, but doesn’tnecessarily change core values

Employers learn the lessons ofmaking assumptions about ageand the experience and capabilityof employees

Diversity in the workforce is shownto be a strength and a way togrow a business

The construction industry usesvirtual reality to train its workers

Discovering the value of learningand sharing knowledge and thechanges it can make in people’slives

Harnessing your anger can lead topersonal and professional success

Explore the links betweenperception, thought and behaviourand the decisions we make

Do weekly, monthly or yearlyawards provide incentive or causeresentment among employees?

Blogging may open a new windowon organisational life, but it canget you fired

It was big in the 19th century, but is there a resurgence inphilanthropy as a new form ofethical behaviour by businessleaders?

Dillinger Hütte

Virgin AtlanticAirways, RichardBranson andRyanair, MichaelO’Leary

Paul Osterman,author of The Truthabout MiddleManagers

Dell Computers,Michael Dell

Grameen Bank,Mohammed Yunus

Cadbury

B&Q

Balfour Beatty

VSO

Kwik-Fit FinancialServices

Ellen Simonetti,Queen of the Sky;IBM

Bill Gates, Warren Buffet andAnita Roddick

Germany/France/Luxembourg

UK/Ireland

USA/Global

USA/Global

UK

Bangladesh

UK

UK

UK

UK/the Netherlands

UK/Global

Global

Global

UK

UK/USA/France

Global

Chapter Page Type of Title Subject Organisation/ Country/no. case business person region

MANAGEMENT IN THE NEWS AND CASE STUDIES

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Chapter 8The Nature ofWork Groups andTeams

Chapter 9Working in Groupsand Teams

Chapter 10The Nature ofLeadership

Part 3Groups, Teamsand Leadership

Chapter 11The Role of theManager

Chapter 12ManagerialBehaviour andEffectiveness

Chapter 13Human ResourceManagement

Part 4The Nature ofManagement

Chapter 14OrganisationalStructures andDesign

Chapter 15Patterns ofStructure andWork Organisation

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337

366

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407

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485

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Managementin the news

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Managementin the news

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Managementin the news

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Longer casestudy

Managementin the news

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Managementin the news

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Managementin the news

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Longer casestudy

Managementin the news

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Managementin the news

Case study

Dragon boat racing onthe Thames

Mumbai’sDabbawalahs: a world-class quality service

Falling down

Top Gear

Managing the mood is crucial

Being Apple: SteveJobs

The Eden Project

Science of managingmonkeys

Stuck in the middle?

When a packed diarybetrays a busy fool

Effective management: a question of context?

The carrot and stickapproach

The changing role of HRM

Jamie Oliver: TheNaked Manager?

A taxing merger

Zara: a dedicatedfollower of fashion

Independents willalways have their day

John Lewis, Waitroseand Ocado:distinctively successful

Tight teamwork and simpletechnique makes dragon boatracing the perfect corporate team sport

The extraordinary teamwork thatdelivers thousands of hot lunchesfrom home to workplace every day

Charting the rise and fall ofcompanies and the need to avoidcomplacency in business

A winning team in front of andbehind the cameras provide theformula for television success

Are moods contagious?Temperament and character canhelp stop a bad situation fromgetting worse

This computer giant is quirky,stylish and generates fierce loyaltyamong its fans; but can it survivewithout Steve?

Promoting environmentalawareness may be an altruisticaim, but the project need morethan good will and enthusiasm to survive

Is the key to success in themanaging of groups allowingemployees to follow their ‘animal’instincts?

Most managers are middlemanagers; but are they happy withtheir lot?

Is a busy schedule a sign ofneurosis or an achievement? How the balance between structureand being accessible can save time

Merchant banking is anaggressive, macho world, so howdoes a working mum succeed?

Should organisations rewardemployees for adopting healthylifestyles?

The HRM function has long beenseen as a service to linemanagers, but can it beoutsourced successfully?

In the fast and intense atmosphereof a kitchen, can a chef also be a good manager?

When two organisations merge,creating a common culture canprove difficult

In the frenetic world of high streetfashion, innovative organisationalstructures have created one of themost sophisticated JIT operationsin the world

The indies of the business worldbring innovation to themarketplace and force the bigplayers to up their game

An unusual organisational structureleads to a very particular culture andstyle of organisational behaviour

Thames DragonBoat Club

Dabbawalahs

Jim Collins, authorof How the MightyFall

Top Gear, BBC,Jeremy Clarkson,James May,Richard Hammondand The Stig

Apple, Steve Jobs

Eden Project, Tim Smit

Charles Jacobs,author ofManagementRewired

Nicola Horlick,Bramdean AssetManagement

Unilever, PitneyBowes

BT, Accenture

Jamie Oliver,Fifteen

Her Majesty’sRevenue andCustoms (HMRC)

Zara, Inditex

John Lewis,Waitrose andOcado

UK

India

Global

UK

Global

USA

UK

Global

UK

UK

UK

UK/USA

Global

UK

UK

Spain/Global

Global

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MANAGEMENT IN THE NEWS AND CASE STUDIES

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Chapter 16Technology andOrganisations

Part 5Structures ofOrganisation

Chapter 17OrganisationalControl and Power

Chapter 18CorporateResponsibility andEthics

Chapter 19OrganisationCulture andChange

Chapter 20OrganisationalPerformance andEffectiveness

Part 6OrganisationManagement

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Managementin the news

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Managementin the news

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Managementin the news

Case study

Managementin the news

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Should twitter beconfined to themarketing department?

Tesco’s accessiblewebsite

Co-operatives

The undercover boss

What you say is whatyou get . . . ?

Trade-offs in the moralmaze

The FairtradeFoundation

The time is ripe forfresh ideas

Moving with the times

How to manage theclever squad

Who says business isboring? M&S’srollercoaster ride

Riverford Organic

Are the rewards worth the riskwhen organisations venture onlinein a ‘network society’?

How technical advances canchange people’s quality of life

Invented in the 19th century,cooperatives are still going strong

A CEO dons a disguise and learnsthat an effective, open dialogue isthe key to your communicatingkey messages to staff

Gender differences incommunication may partly explainthe ‘glass ceiling’, but noteverywhere

An examination into the moralambiguities of the workplaceversus the black and white worldof business ethics

As the popularity of fairtradeincreases, is its growth sustainableor has commercialisation resultedin a ‘cleanwashing’ of an idealisticmovement?

Do recessionary times act as thecatalyst to spur changes inorganisational cultures?

Can hot-desking really work? One team of professionals showsthe way

Is it time to reframe the debateover talent, and knowledgeworkers?

How Marks & Spencer went fromtakeover target to the toast of thestock exchange

What does it mean to be an‘ethical organisation’? Can anorganisation go even further toactively reduce the environmentalimpact of modern life?

Twitter, DonTapscott, BernhardWarner, OliverToubia

Tesco, RNIB

Rochdale EquitablePioneers Society,MondragónCooperativeCorporation

Clugston Group,Stephen Walker

Female managersin France, UK,Germany andChina

Prof Michel Anteby,Harvard BusinessSchool

The FairtradeFoundation

NHS WorkforceReview Team(WRT)

Marks & Spencer,Stuart Rose

Riverford Organic

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Global

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Global

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ABOUT THIS BOOK

The concepts and ideas presented in this book provide a basis for an appraisal of contrast-ing perspectives on the structure, operation and management of organisations, and inter-actions among people who work in them. It is hoped that this will encourage a greater levelof awareness and sensitivity to organisational factors and management processes influencingthe behaviour and performance of people at work. The underlying theme of the book is theneed for organisational effectiveness based on an understanding of organisational behav-iour, the people resource, and the role of management as an integrating activity. Adoptinga managerial perspective provides a clear focus of attention and helps to overcome anyperceived distinction between organisational behaviour and organisational analysis.

The aims of this book

The aims of this book are to:

■ relate the study of organisational behaviour with that of management;■ provide an integrated view embracing both theory and practice;■ point out applications of social science within work organisations and implications for

management action;■ indicate ways in which organisational performance may be improved through better

understanding of human resources and the effective management of people.

The intended audience

The comprehensive coverage and progressive presentation of contents will appeal to studentsat undergraduate level or on related professional courses; and to graduate and post-experiencestudents who through their course of study wish to enhance their knowledge and under-standing of the subject area. It is also hoped that the book may appeal to those aspiring toa managerial position.

The scope of this book

The behaviour and actions of people at work and the activities of an organisation are directedtowards the achievement of certain goals and also have social implications. The study oforganisational behaviour should not therefore be considered in a vacuum but related to the process of management and to the wider organisational context and environment.Broadening the scope of the subject matter beyond the concerns of traditional organisa-tional behaviour texts is a distinctive feature of this book.

The study of organisational behaviour is a wide and essentially multidisciplinary field ofinquiry and no single book could hope to cover adequately all aspects of the subjectarea. In order to attain a reasonable depth, this book concentrates on selected topics of particular relevance to organisational behaviour and management of the humanresource, and which meet the needs of the intended audience. The design and contentsof this book mean that it is especially suitable across a range of different but relatedmodules, including single or double semester units, and will help provide an inte-grated approach to your course of study.

xix

ABOUT THIS BOOK

xx

Format of this book

There is a logical flow to the sequencing of topic areas and each chapter of the book is self-contained with appropriate cross-referencing to other chapters. Main sections are identifiedclearly within each chapter and there are detailed headings and sub-headings. This providesa flexible approach. The selection and ordering of chapters can be varied to suit the demandsof your particular courses of study or individual interests.

The book is written with a minimum of technical terminology and the format is clearlystructured. Each chapter is supported with illustrations and contains:

■ a short introduction and learning outcomes;■ critical reflections throughout the text;■ a synopsis of key points;■ review and discussion questions;■ a practical example of management in the news;■ assignment(s);■ a personal awareness and skills exercise;■ a case study;■ detailed notes and references.

For each Part of the book there is also an academic viewpoint and an integrative case study.

Words set in colour throughout the main text indicate inclusion in the Glossary.

The ninth edition

The text retains the same underlying aims and approach that have been a hallmark of thesuccess of the book. For this ninth edition there have been an extensive review of the over-all plan and order of contents between and within chapters; and considerable additional andupdated contents, figures and practical examples throughout. Readers familiar with previouseditions may wish to note the main changes in this ninth edition, including:

■ Reworking of Chapter 1 including expanded coverage of orientations to work, globalisa-tion and cultural influences.

■ Major new section on social enterprise organisations, new section on the future of workand the ‘Y’ factor, extended coverage of stress and work/life balance (Chapter 3).

■ Expanded coverage and major new organisational examples of diversity (Chapter 4).■ New section on lifelong learning, extended coverage of the Honey and Mumford styles of

learning (Chapter 5) and material on learning organisations consolidated in Chapter 20.■ Extended coverage with additional examples of cultural influences on perception and

communication (Chapter 6).■ Major new section on organisational behaviour modification, and new section on the

ultimatum game (Chapter 7).■ New sections on creative leadership and group development, and social identity theory

(Chapter 8).■ Additional coverage of leadership effectiveness and cross-cultural dimensions (Chapter 10).■ Increased attention to the changing role of management (Chapter 11).■ Updated Management Standards (Chapter 12).■ Reworking of Chapter 13 ‘Human Resource Management’ to provide greater emphasis on

a strategic approach, and new material throughout including Investors in People, perform-ance management and a new section on talent management.

■ Organisation strategy moved to provide a closer link with organisation structure in arewritten Chapter 14.

■ Complete rewriting of Chapter 16, ‘Technology and Organisations’ with greater emphasison social implications and impact on people.

■ Expanded coverage of corporate responsibility and ethics in a separate Chapter 18.

ABOUT THIS BOOK

xxi

■ Expanded coverage of organisational change including new section on the neuroscientificapproach to resistance to change (Chapter 19).

■ Consolidated material on the learning organisation, new material on organisational effective-ness, employee engagement, and the future of work and management (Chapter 20).

■ For each chapter there is now a set of six critical reflections throughout the text.■ A completely new ‘Management in the news’ for every chapter; a significant number

of new and updated end of chapter Case studies; and the addition of an ‘Academicviewpoint’ feature at the end of each Part of the book.

Attention continues to be focused on design features and overall appearance to provide amanageable and attractive text with enhanced clarity and user friendliness.

Your study of this book

This book adopts an applied approach to the study of management and organisational behav-iour. The objective analysis of organisations is supported, where appropriate, by a more prescriptive stance. For example, the underlying need to establish a framework of orderthrough which the work of the organisation is undertaken demands attention to certainbasic principles and consideration of organisation and management.

■ The Critical reflections throughout each chapter are controversial statements to help provoke critical thinking, inspire personal reflection about the areas you have just readand about what happens in your own organisation.

■ The Review and discussion questions at the end of each chapter help test your know-ledge and understanding of the contents, and provide a basis for revision and review ofprogress.

■ The Management in the news, Assignments, Personal awareness and skills exercises,and Case studies provide an opportunity to relate ideas, principles and practices to specificwork situations, to think and talk about major issues, and to discuss and compare viewswith colleagues.

■ The Notes and references given at the end of each chapter are to encourage you to pursue further any issues of particular interest.

■ The Academic viewpoint at the end of each Part relates to a recent article in an academicjournal that prompts you to explore and question a topic relating to that Part of the book.

■ The integrative Part Case studies provide a further opportunity to relate and discuss keyconcepts and ideas to your reading of the text.

■ The comprehensive Glossary provides a brief description of key terms referred to in the text.

In order to help relate the contents of the chapters to real-life situations, many of thequestions ask you to support your discussion with examples from your own organisation.This can, of course, be your college or university. Alternatively, you may have work experi-ence, even part-time or casual employment, in other organisations that you may drawupon.

You are encouraged to complement your reading by drawing upon your own experiencesof work organisations. Search for both good and bad examples of organisational behaviourand people management. Consider the manner in which concepts, ideas and examples pre-sented in this book can best be applied in particular work situations. Contemporary examplesfrom your own observations should help illustrate real-life applications and further yourinterest in the subject area.

I hope you will find satisfaction, and even some measure of enjoyment, from this book.

Laurie J. Mullins

The book is divided into six parts, each of whichopens with a list of chapters and a link torelevant online video content.

THE ORGANISATIONAL SETTING

The Nature of Organisational Behaviour

Approaches to Organisation and Management

The Nature and Context of Organisations

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2

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Part 1

The Global ContextVisit www.pearsoned.co.uk/mymanagementlab to access the onlinevideo case study that complements Part 1: The Organisational Setting.This video offers a real life example of how one company responds tothe context of business today. Maersk is a global shipping companywith over 500 vessels moving nearly 2 million containers. In this video,Customer Service Director Brian Godsafe describes how the companyoperates and meets the varied needs of customers around the world.

ONLINE VIDEOCASE STUDY

Critical reflections are controversialstatements to inspire critical thinkingabout the areas you have just read.

Management quotes provide insightinto managerial thinking.

Chapter introductions provide abrief description of the key themesin the chapter.

Learning outcomes enable you tofocus on what you should haveachieved by the end of the chapter.

The relationship between the organisation and its members isinfluenced by what motivates them to work and the rewards andfulfilment they derive from it. The nature of the work organisation,styles of leadership and the design and content of jobs can havea significant effect on the satisfaction of staff and their levels ofperformance. The manager needs to know how best to elicit theco-operation of staff and direct their efforts to achieving the goalsand objectives of the organisation.

Learning outcomes

After completing this chapter you should be able to:

■ explain the meaning and underlying concept of motivation;

■ detail main types of needs and expectations of people at work;

■ explain frustration-induced behaviour and possible reactions to frustrationat work;

■ examine main theories of motivation and evaluate their relevance toparticular work situations;

■ review the meaning, nature and dimensions of job satisfaction;

■ assess broader influences on motivation and job satisfaction;

■ evaluate the relationship between motivation, job satisfaction and workperformance.

WORK MOTIVATION AND JOBSATISFACTION

Critical reflection

7

‘Some writers argue that people do not lack motivation, only the righttriggers to motivate them. Some claim that motivation can only come fromwithin and attempts from other people to motivate you have little lastinginfluence.’

What are your views? In your own words, what motivates you most?

Critical reflection

‘A number of eminent writers have drawn attention to the changing nature of managementand the work of the manager. Yet reading the ideas of other “gurus” such as PeterDrucker and Mary Parker Follett it appears little is really new, and the underlying role ofmanagement remains unchanged.’

What are your views? What specifically do you see as the likely role of the manager in ten years’ time?

PART 4 THE NATURE OF MANAGEMENT

the top of the hierarchy. One of her most notable contributions was emphasis on the situ-ational approach as one of the main forces in influencing the manager–subordinate rela-tionship through the depersonalising of orders and obeying ‘the law of the situation’.48

Parker suggests that Follett’s ideas on human relations in the workforce foreshadowed the stateof things to come and continue to offer managers in the new century fresh food for thought.Her proposals for best management practice have not only reflected much of what is portrayedas new today but offer managers fresh insight into the task of leadership and management.49

The fact is that management ultimately depends on an understanding of human nature. I suggestit goes much further than that. In the first place, good management depends on the acceptanceof certain basic values. It cannot be achieved without honesty and integrity, or without con-sideration for the interests of others. Secondly, it is the understanding of human foibles that weall share, such as jealousy, envy, status, prejudice, perception, temperament, motivation and talent, which provides the greatest challenge to managers.

HRH The Duke of Edinburgh50

Management is about human beings. Its task is to make people capable of joint performance, tomake their strengths effective and their weaknesses irrelevant. This is what organization is allabout, and it is the reason that management is the critical, determining factor . . . We depend onmanagement for our livelihoods and our ability to contribute and achieve.

Peter F. Drucker51

SYNOPSIS

■ ‘Management’ is a generic term and subject tomany interpretations. A number of contrasting ideas

‘doing’ we can summarise the nature of managerialwork as clarification of objectives, planning, organis-

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The Academic viewpoint feature is new to this editionand links you to relevant research that will help youtake your learning further by examining the applicationsof various theoretical approaches, prompting you toquestion and build up on what you have learnt so far.

Case studies conclude each chapter and each part,providing insight into organisational behaviour in a wide variety of contemporary UK and internationalorganisations.

Discussion questions and Your tasksencourage you to relate the Managementin the news and Case studies to theoriescovered in the chapter.

PART 3 GROUPS, TEAMS AND LEADERSHIP

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ACADEMIC VIEWPOINT

Below you will find the title and abstract of a recent article in an academic journal which explores a topic relevantto the chapters in Part 3.

Baruch, Y. and Jenkins, S. ‘Swearing at Work and Permissive Leadership Culture’, Leadership andOrganizational Development Journal, vol. 28, no. 6, 2006, pp. 492–507.

AbstractPurpose: The purpose of this paper is to examine the use of expletives and swearing in the work-place. It proposes to challenge leadership style and to suggest ideas for management best practice.

Design/methodology/approach: Case studies and qualitative analysis were applied, methods thatfit well for this sensitive topic.

Findings: This paper identifies the relevance, and even the importance, of using non-conventionaland sometimes uncivil language in the workplace.

Research limitations/implications: Sample size and representativeness present limitations.

Practical implications: There is a need for leaders to apply, under certain circumstances, a permissive leadership culture. This paper advises leaders on how it may lead to positive consequences.

Originality/value: The paper is an original contribution to an area where research is scarce. A certain originality element stems from the fact that, focusing on swearing language, the paperfound it necessary to use swear words (avoiding usage of the explicit form); bearing in mind thepurpose of the paper, the paper hopes that this will not cause offence to the readership of the journal.

CommentaryAcademic discussion of topics such ascommunication in relation to group dynamics,workplace culture and leadership style tend to focuson formal behaviours. However, the reality of manywork environments (and indeed the fictionaliseddepiction of the workplace in film and on television) isoften characterised by informality and ‘colourful’language including swearing. There is often anassumption that swearing and bad language arenegative behaviours. This interesting paper challengesthat assumption, and suggests that there are differenttypes of swearing, some of which may be positive ineffect. It also reveals some interesting characteristicsof language use in terms of gender and culture; and itconcludes with some important observations aboutthe role of managers with regard to ‘industriallanguage’.

N.B. The article itself contains a small number (12) ofannotated expletives to illustrate points.

The article might prompt you to consider thefollowing questions.

■ What does the information in the article tell usabout the importance of the ‘informal’ aspects ofgroup and team behaviour?

■ How can the study of workplace language,including swearing, enhance our understanding ofthe nature of managerial leadership?

■ What light do studies of this sort shed on problemsexperienced by team members and team leaderswho are not part of a dominant organisationalculture?

■ How far do you think the idea of a workplace‘language policy’, initiated by managers, is feasible?

What does it mean to be an ethical organisation?Arguably an ethical business is one which operates fairlyand decently in its dealings with suppliers, customersand workers, obeys the law and pays its taxes. However,the meaning of ‘ethical’ as commonly used by themedia seems to have become equated with ‘green’ inthe environmental sense. Clearly, all organisations, bothpublic and private sector, can be challenged to run atlower levels of energy use etc., and many now includesuch objectives in their strategic plans. But is it possibleto go even further, and seek to develop products andservices which can actively reduce the environmentalimpact of modern life? And if so, how can anorganisation be sure that what it is doing really achievesthat aim? One organisation that seems to be attemptingjust this is Riverford Organic, a vegetable box deliveryscheme based in the south-west of England.

No hippies hereFor some decades the organic movement had a ratherhippie, ‘muck and magic’ image which viewed organicproduction and consumption as an act of faith ratherthan a business proposition. However, a variety of foodscares in the 1980s and 1990s, together with longer-standing concerns about the health and environmentalimpact of chemicals used in food production, graduallybrought organic farming into the mainstream, and bythe turn of the century most major supermarketsincluded at least some organic produce in the fruit andvegetable section. This might have provided a betteroutlook for organic growers, but the major food retailersremained both powerful and strongly focused on priceand consistency, and this often made relationships withsuppliers combative and lopsided. Experience of thepower of supermarket buyers and a desire to escapetheir stranglehold on vegetable distribution and saleswas one of the reasons why Riverford came about.1

The business was created by Guy Watson, who grewup on his father’s farm in Devon. However, it tookGuy’s wider business expertise, partly gained during abrief consultancy career in the mid 1980s, to create thenetwork of farms and the distribution system whichforms the basis of the organisation today. His insight,which seems to have helped formulate the Riverfordstrategy, was to see the market for organic produce assimilar in nature to the emerging markets he had beeninvolved with as a management consultant.2 Thisinsight has meant that, whilst true to the values of

organic farming and environmentally sustainableoperating systems, Riverford has been able to become a very large player in business terms. In 1992 Watson’svegetable box delivery scheme was typically small-scale,local and focused around a single grower, serving about200 customers in the south Devon area. In 2008 thecompany made on average 47,000 deliveries a week inEngland and Wales, with sales reaching £33 million.3

Five regional farms, each supporting a co-operative orgrower group of local farms, now form the network ofregional producers that operate under the Riverfordbanner, and the boxes are delivered by 110 localfranchisees, who do the rounds which put the veg boxeson customers’ doorsteps. The business has evenmanaged to sustain its sales volumes despite two verybad growing seasons (2007 and 2008) and thepossibility that customers would cut back on organicfood purchases during the recession.

Why organic?Watson often explains his decision to produce organicvegetables in personal terms.

When I was growing up our family farm, like mostothers, used loads of chemicals. As a teenager I got illafter getting careless while spraying sweetcorn, notwearing protection. My brother got paraquat poisoning.Agribusiness uses chemicals to grow our food, whileneglecting the health of the soil.4

His farm gained organic status as far back as 1986, andthe door to door delivery scheme helped reduce the

Riverford OrganicPART 6CASE STUDY

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What does it mean to be an ‘ethical organisation’? Can an organisationgo even further actively to reduce the environmental impact of modern life?

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Notes and references

1 Clarke, N., Cloke, P., Barnett, C. and Malpas, A. ‘The Spaces and Ethics of Organic Food’, Journal of Rural Studies, vol. 24, 2008, pp. 219–30.

2 Watson, G. ‘Part of a Solution’, Resurgence, Issue 237, July/August 2006, available on-line at www.resurgence.org/magazine/article369-PART-OF-A-SOLUTION.html (accessed 17 June 2009).

3 Stone, A. ‘How I Made It’, The Sunday Times, 27 July 2008.4 Sowerby, N. ‘Organic Champion Guy Watson Takes On the Big Guns’, City Life online,

http://www.citylife.co.uk/restaurants/news/13685 (accessed 16 June 2009).5 Slater, L. ‘Root Manoeuvre’, The Sunday Times, 31 August 2008.6 Clarke et al. op. cit.

Your tasks■ Explain the organisational control strategies that appear to be operating in the Riverford organisation. Why

and how have these control systems needed to change as the business grew?

■ Using an appropriate model (such as that at Figure 19.1) outline the key elements of Riverford’sorganisational culture. How might the culture need to change if the organisation is to survive both increasedcompetition and threats to its growth as a result of economic recession?

■ How important is management development to the future of Riverford? What would you include in amanagement development programme for future leaders of the business? Explain the managementdevelopment techniques that would be appropriate, bearing in mind the nature of the organisation’s work(principally agricultural), structure (regionalised and dispersed) and values.

As Riverford has grown, however, communication ofthis sort has become more of a challenge. The staffsurveys too show that more work needs to be done here.The relatively flat structure means that significant newsabout the business can be communicated to all staff inabout two weeks; but the aim is to speed this up andensure it happens. There are quarterly briefing sessionson all five farms across the country open to all staff andattended by Guy and the Managing Director. They areused to encourage suggestions and discussion as well asto convey information about business progress. There isalso a staff committee of six elected representatives.

Promotion opportunities are limited by the flatstructure, but there are often chances to move sideways.However, all staff are expected to be flexible and there isa strongly anti-bureaucratic ethos. A number of staffhave moved from working on picking or box packing to go into management or specialist roles such as IT.The company aims to grow as many people from withinthe business as possible; there is a staff developmentprogramme lasting ten weeks for all new and also moreestablished staff who show an interest; this involves oneday a week spent in the key areas including boxplanning, quality control, marketing and customerservices, the Field Kitchen and even accounts. Riverfordhas run a management development programme usingexternal advisors, and is developing in-housesupervisory training.

Away from Devon, the 110 franchisees delivering theboxes are the lifeblood of the business. As the growth of2004–6 has stabilised, and supermarkets are now

competing both in terms of organics and homedeliveries, the company has recognised that franchiseesthemselves need to become more sales-oriented andmore confident in talking to people about whatRiverford has to offer. In support of this, five regionalSales Development Managers are being recruited to helpthe franchisees to become more effective atcommunicating this message. These appointments havebeen difficult to make as the blend of sales knowledge,a passion for food/cooking and a commitment toorganic values is hard to locate.

‘We want to use our business to make the world a better place’16

The term ‘social entrepreneur’ has recently come intouse to describe business founders whose motives andbusinesses are designed around a specific principle orsocial problem which can benefit from a commercialapproach. Grameen Bank is one such organisation; so isthe Fifteen Foundation. Guy Watson’s approach seemssimilar, and his concern is not confined to improvingeating habits or promoting environmentalism in theUK. For a number of years Riverford has collaboratedwith small-scale farmers in Uganda with a view toimproving trade opportunities with the UK by linkingdirectly with producers at local level. He has alsoencouraged the development of sustainable agriculturein Uganda through a training initiative. It is Watson’sbelief that trade and training can bring about beneficialchange, and in this respect we may add Riverford to the growing list of social enterprises.

PART 6 CASE STUDY RIVERFORD ORGANIC

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A melting pot for forging successPeter Marsh

FT

MANAGEMENT IN THE NEWS

Paul Belche uses a culinary metaphor to explain howhe tries to coax the best qualities from the mix ofcultures at the steel plant he runs in western Germany,close to the borders with France and Luxembourg. ‘If you mix the yellow part of an egg with mustard andoil without being careful, you will produce somethingunexciting. But, if you pay correct attention to thedetails, you end up with the best mayonnaise,’ hesays. He is explaining his approach to managingDillinger Hütte, a global leader in specialist steels forapplications such as oil pipelines. Mr Belche’s tacticsfor getting the best out of his employees provide wider lessons for managers of diverse workforces.

The company aims to take advantage of thedifferent cultural characteristics of Saarland – theGerman state where it is based that, over thecenturies, has switched between French and Germansovereignty. Of the 5,500 employees in Dillinger, about10 per cent have French as their main language, andthe rest German. Mr Belche, a 56-year-old physicist, is from Luxembourg. ‘The Germans are strong when it comes to practical work. The French are good attheory and we try to get the best of these twocharacteristics,’ he says. Mr Belche poses a question:‘Who do you think would be better at plant safety –the German [speakers] or the French? You might thinkit would be the Germans. But actually it’s the French –they realise they are possibly behind in this field andso they work at it. Sometimes weakness can be astrength – as long as it’s recognised.’

His approach, he says, is to put teams of peoplefrom the different cultures together and encouragethem to learn from each other. The factory follows theFrench approach to dining, with a siren announcingthe end of the lunchtime break at 3pm, an hour laterthan is normal at other German steelworks. ‘This is togive us time for a decent lunch,’ says Mr Belche.When it comes to sales and technology, he says, theaim is to link the practical aspects of steelmaking andits applications, which he considers more German,and the theoretical, which he considers more French.This mixing of the practical and theoretical must belinked to a single aim: making good products that willdo a better job of solving customers’ problems, MrBelche says.

He sums up his philosophy: ‘The biggest costs arethe ones that the accountant will miss. They comefrom the products that you never developed or theprices [of specific types of steel] that you neverreached because you weren’t good enough at selling

them.’ In the tough business of making money out ofsteelmaking, it helps if companies can offer somethingspecial. In the effort to make this happen, the mix ofcultures at Dillinger provides a soufflé of experiences,Mr Belche believes, that gives it a decent chance ofsuccess even in the current uncertain climate.

Source: Marsh, P. ‘A Melting Pot for Forging Success’, FinancialTimes, 8 March 2009. Copyright © 2009 The Financial TimesLimited, reproduced with permission.

Discussion questions1 Analyse the organisational behaviour elements of

this article using the multidisciplinary frameworkillustrated in Figure 1.3. What evidence can youfind about factors relevant to each of the fiveareas?

2 In the light of ideas put forward by Hofstede,Trompenaars and Hall, what do you think are the advantages of having a culturally diverseworkforce like this? What particular challenges do you think it poses for managers?

PART 1 THE ORGANISATIONAL SETTING

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This mixing of the practical and theoretical must be linked to a single aim: making good products that will do a better job ofsolving customers’ problems.

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The Management in the news featureprovides interesting journalistic commenton relevant current issues and companies.

Synopsis brings together the key conceptsof the chapter to aid your understanding.

Review and discussion questions help youto check your understanding of the topic,stimulate further investigation and encouragedebate.

Assignments help you to understand theoriesand challenge your assumptions by applyingideas and analysis to your own experiences.

Personal awareness and skills exercisesdevelop your interpersonal and work-basedskills.

1 How would you define an organisation and why do organisations exist? What are the common factors in anyorganisation?

2 Contrast various organisations, including your own, in terms of classifications based on (i) prime beneficiary,and (ii) primary activity.

3 Discuss critically the extent to which differences among various organisations limit the value of the study ofmanagement and organisational behaviour.

4 Assess critically the practical value to both the student and the manager of adopting an open systems viewof organisational analysis.

5 Distinguish between the formal and the informal organisation and explain their main characteristics. Whatfunctions are served by the informal organisation?

6 To what extent do you accept the view that conflict is an inevitable feature of management andorganisational behaviour?

7 Why do you think increasing attention is being given to the work/life debate? Is this attention justified? As a senior manager, what steps would you take to help improve the quality of working life for staff?

8 Give your own critical views on how you see the organisation of the future and the humanisation of organisations.

REVIEW AND DISCUSSION QUESTIONS

CHAPTER 3 THE NATURE AND CONTEXT OF ORGANISATIONS

113

SYNOPSIS

■ The application of organisational behaviour andprocess of management take place not in a vacuumbut within the context of an organisational setting.There are many different types of organisations set upto serve different purposes and needs, and they comein all forms, shapes and sizes. However, there are at least three common factors in any organisation –people, objectives and structure – to which can beadded a fourth factor – management. The qualities ofthese factors determine organisational effectiveness.

■ Organisations can, traditionally, be distinguishedin terms of two generic groups: private enterprise andpublic sector. The increasing rate of privatisation hasled, however, to a blurring of commercial interestsand service to the community. In recent years greaterattention has been given to social enterprise organisa-tions. Another major distinction is arguably betweenproduction and service organisations. In order to relatethe study of management and organisational behav-iour to one particular type of organisation as distinctfrom another, it is necessary to group similar types oforganisations together.

■ Organisations differ in many important respectsbut they also share common features. Business organ-isations can be viewed as open systems in continualinteraction with the external environment of whichthey are part. The open systems model enables thecomparative study and analysis of work organisations.Within the organisation as a whole there are a numberof sub-systems interrelating and interacting with eachother. These sub-systems can be identified as task,technology, structure, people, and management.

■ Whatever the type or nature of an organisation orits formal structure, an informal organisation willalways be present and arises from the interactions ofpeople, their psychological and social needs and thedevelopment of groups with their own relationshipsand norms of behaviour. The informal organisationserves a number of important functions and has an influence on the morale, motivation, job satisfactionand performance of staff.

■ It might be expected that a healthy organisationalclimate would be reflected by complete harmony inworking relationships, but conflict is a reality of management and organisational behaviour. There arecontrasting views of conflict and it can be seen to haveboth positive and negative outcomes. The importantpoint is how conflict is handled and managed.Managers need to adopt appropriate strategies fordealing with the harmful effects of conflict.

■ There appears little doubt that stress at work is amajor concern and a potential source of mental andphysical ill-health. However, a certain amount of pressure may arguably help promote a higher level of performance. There are a number of measures tohelp reduce the harmful effects of stress. Increasingattention is focused on the role organisations play inthe lives of staff and with broader concerns for thework/life balance and for meaning in people’s lives.Organisations of the future need to be aware of theimportance of people and of new social contractsbetween employers and employees.

Stroop – illustrative experiment

(This is a development of Figure 6.11 and provides a further opportunity to review possible perceptual illusion.)

a Write two vertical lists of 20 colour names in felt tip pen. For the first list, use the correct colour pen for thecolour word you are writing (for example, blue pen for the word blue). Repeat some of the colours but placethem in random order.

b For the second list, use different colour pens for the colour word (for example, use a red pen for the word blue).

c Now ask a colleague to read out loud the colour that the word is written in (not the word itself ). Compare theamount of time it takes your colleague to read out the two lists. The second list probably not only took longerbut had more mistakes and more hesitations.

William Stroop, who first conducted this experiment, noted that the task interferes with expected behaviour. It isdifficult to stop yourself from reading the word (the result of our early learning), which in this case directlyimpairs performance.

ASSIGNMENT 1

Form small groups and then undertake, individually, the following exercise.

What conclusions do you draw from this exercise?

ASSIGNMENT 2

1 Read everything before you do anything.

2 Put your name in the upper right-hand corner of the paper, inthe space provided.

3 Circle the word ‘name’ in the second sentence, above.

4 Draw five small squares in the upper left-hand corner of this paper.

5 Put an X in each of the five small squares you have drawn.

6 Put a circle around each of those five small squares above.

7 Sign your name, under and to the left of the title above.

8 Draw a circle, in pen, around sentences 6 and 7 above.

9 Multiply 70 � 30 and write the result on the reverse side.

10 Draw a circle around the word ‘paper’ in sentence 4, above.

11 Please now call out your first name, loudly.

12 If you feel that you have carefully followed these directions, callout, loudly: ‘I have carefully followed directions!’

13 Add 107 and 278, and write the sum on the reverse, immediatelyunder the first figure that you wrote there.

14 Circle that figure on the reverse.

15 In a normal voice, count aloud from 1–10.

16 If no one else has said it, say now, ‘I am the leader!’

17 Now that you have read all of the foregoing, very carefully,please complete ONLY sentences 1 and 2.

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PART 2 THE INDIVIDUAL

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ObjectivesCompleting this exercise should help you to enhance the following skills:

■ Distinguish between facts and assumptions or inferences.■ Examine the basis upon which you make judgements.■ Review the nature of your communication and decision-making processes.

ExerciseAfter reading the following story you are required to:

1 Read the 15 statements about the story and check each to indicate whether you consider it to be true, false or?

‘T’ means that the statement is definitely true on the basis of the information presented in the story.‘F’ means that it is definitely false.‘?’ means that it may be either true or false and that you cannot be certain of which on the basis of theinformation presented in the story. If any part of a statement is doubtful, mark it ‘?’.

Answer each statement in turn. You may refer to the story as often as needed but do not go back to changeany answer later and do not re-read any statements after you have answered them.

2 After you have checked all 15 statements, work in small groups of three to five and discuss your individualanswers. How much agreement is there among members of your group? Do not change any of your firstindividual answers. However, if as a result of your group discussion you would now give a different answer to any of the statements, note this alongside your original answer.

The storyA businessman had just turned off the lights in the store when a man appeared and demanded money. The owner opened a cash register. The contents of the cash register were scooped up and the man sped away. A member of the police force was notified promptly.

Statements about the story

1 A man appeared after the owner had turned off his store lights. T F ?2 The robber was a man. T F ?3 The man who appeared did not demand money. T F ?4 The man who opened the cash register was the owner. T F ?5 The storeowner scooped up the contents of the cash register and ran away. T F ?6 Someone opened a cash register. T F ?7 After the man who demanded the money scooped up the contents of the cash register, T F ?

he ran away.8 While the cash register contained money, the story does not state how much. T F ?9 The robber demanded money of the owner. T F ?

10 A businessman had just turned off the lights when a man appeared in the store. T F ?11 It was broad daylight when the man appeared. T F ?12 The man who appeared opened the cash register. T F ?13 No one demanded money. T F ?14 The story concerns a series of events in which only three persons are referred to: T F ?

the owner of the store, a man who demanded money and a member of the police force.15 The following events occurred: someone demanded money, a cash register was opened, T F ?

its contents were scooped up and a man dashed out of the store.

Source: From Hanley, W. V. Communications and Interpersonal Relations, Texts and Cases, sixth edition, Irwin (1992), p. 213.

Discussion■ How would you explain differences in individual perceptions of the same statement?■ On what basis did members of your group give different answers and how did their perception of

the statements about the story differ?■ To what extent can you be absolutely certain about anything?

PERSONAL AWARENESS AND SKILLS EXERCISE

CHAPTER 6 PERCEPTION AND COMMUNICATION

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GUIDED TOUR OF THE BOOK

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GUIDED TOUR OF

The ninth edition of Management & Organisational Behaviour comes withMyManagementLab, a personalised and innovative online study and testing resource thatprovides a variety of tools to enable you to assess and progress your own learning.

To get started, open your access kit, which is included inside this book. This access kit willenable you to register online.

Register and log-in Go to www.pearsoned.co.uk/mymanagementlab and click on the option to register as astudent user. Enter your course ID if you have already been given this by your lecturer. If youdon’t have a course ID then search for the author and book title to register and log-in andfollow the instructions on-screen using the code in your access kit.

The log-in screen will look like this:

Now you should be registered with your own password and ready to log-in to your own course.

When you log-in to your course for the first time, the course homepage will look like this:

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Step 2: Review your study plan The results of the diagnostic test you have taken will be incorporated into your study plan,showing you what sections you have mastered and what sections you need to study further– helping you make the most efficient use of your self-study time.

Don’t forget that you can click on the e-book link to read the relevant part of your textbookfrom the home page

Step 3: Have a go at an exercise From the study plan, click on the section of the book you are studying and have a go at theinteractive Exercises.

Good luck getting started with MyManagementLab.

Now follow the steps below for the chapter you are studying.

Step 1: Take a diagnostic test There is a diagnostic test for each chapter. This will enable you to test yourself to see howmuch you already know about a particular topic and will then identify the areas in which youneed practice.

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IN ACKNOWLEDGEMENT AND APPRECIATION

A warm and special tribute is paid to my wife Pamela and family for their love, continuingsupport and encouragement for this ninth edition.

Special thanksThis is to record a special debt of thanks and gratitude to friends and colleagues Linda Carterand David Preece for their significant contribution to earlier editions of Management andOrganisational Behaviour.

WelcomeI wish also to welcome friends and colleagues Gill Christy and Peter Scott for their invalu-able contribution to the eighth edition and to the present text.

Thanks and gratitude also to:

Richard Christy, Ray French, Robyn Miller, Christine Paterson, Anne Riches, AmandaStevens, Lynn Thomson.

Managers who kindly gave permission to reproduce material from their ownorganisations.

The team at Pearson Education including Gabrielle James, Joe Vella, Simon Lake,Matthew Walker, Alison Westwood, Emma Violet, Colin Reed; and colleagues inmarketing and sales.

Those who in a variety of ways through their friendship and support have helped in the completion of this ninth edition, including: Brigitte Bjorn; Di and Mike Blyth; John Bradley; Chris and John Grant; Jenny and Tony Hart; Karen Meudell, Lynn andWayne Miller; Jeanette Smith and colleagues at Bath Travel.

ReviewersThanks and appreciation to the following reviewers, approached by the publishers, for theirinsightful and constructive comments that have helped shape the contents of this ninth edition:

Dr Nicola Bown, Leeds University Business School

Marilyn Farmer, Buckinghamshire New University

David Godfrey, Hull College

Sarah Horne, Colchester Institute

Dr Phil Kelly, Liverpool John Moores University

Paul Leonard, Northumbria University

Samantha Lynch, Kent Business School

Dr Louise Preget, Bournemouth University

Paul Rowlandson, University of Ulster, Department of International Business

Bob Smale, University of Brighton Business School

Rod Smith, University of Bedfordshire

Wendy Yellowley, Buckinghamshire New University

Laurie J. Mullins

We are grateful to the following for permission to reproduce copyright material:

FiguresFigure 1.1: Adapted from Management, eighth edition, South-Western Publishing (Hellriegel,D., Jackson, S. E. and Slocum, J. W., Jr. 1998), p. 6. Copyright © 1999 South-Western, a partof Cengage Learning, Inc. Reproduced by permission (www.cengage.com/permissions);Figure 1.7: From Organisational Behavior: Individuals, Groups and Organisations, third edition,Financial Times Prentice Hall (Brooks, I. 2006), p. 272. Reproduced with permission fromPearson Education Ltd; Figures 1.8, 2.3, 3.10, 4.8, 5.7, 6.14, 7.14, 8.2, 9.8, 10.8, 11.8, 12.7,13.4, 14.13, 15.8, 17.7, 18.2, 19.3 and 20.4: Copyright © 2008 The Virtual LearningMaterials Workshop. Reproduced with permission; Figures 3.7 and 15.1: Adapted fromCorporate Strategy, fourth edition, Financial Times Prentice Hall (Lynch, R. 2006). Reproducedwith permission of Pearson Education Ltd; Figure 3.9: Adapted from ‘Organisational Analysis’,supplement to Manager, The British Journal of Administrative Management, No. 18, March/April (Lysons, K. 1997). Reproduced with permission of the Institute of AdministrativeManagement; Figure 3.11: From Tackling Stress: The Management Standards Approach, publica-tion no. indg406, July (Health and Safety Executive 2005). Reproduced under the terms of the Click-Use License; Figure 4.3: Modified and reproduced by special permission of thepublisher, CPP, Inc., Mountain View, CA 94043 from the Introduction to Type®, sixth editionbooklet by Isabel Briggs Myers, revised by Linda K. Kirby and Katharine D. Myers. Copyright© 1998 by Peter B. Myers and Katharine D. Myers, All rights reserved. Further reproductionis prohibited without the publisher’s written consent. Introduction to Type® is a registeredtrademark of the MBTI Trust, Inc. in the United States and other countries; Figure 4.4:Adapted from The Structure of Human Abilities, Methuen and Co. (Vernon, P. E. 1950).Reprinted with permission from Taylor & Francis Books (UK); Figure 4.5: From ‘Three Facesof Intellect’, American Psychologist, vol. 14, pp. 469–79 (Guilford, J. P. 1959). Published byAPA and reprinted with permission; Figure 4.6: Adapted from Emotional Competence Inventory,Version 2, Hay Acquisition Company, Inc. (2002) Copyright © 2002 Hay AcquisitionCompany, Inc. All rights reserved; Figure 4.7: Adapted from Office for National Statistics(ONS), www.statistics.gov.uk, Crown copyright material is reproduced with the permis-sion of the Controller, Office of Public Sector Information (OPSI); Figure 5.5: Adapted from Managing Change: A Human Resource Strategy Approach, Financial Times Prentice Hall(Thornhill, A., Lewis, P., Millmore, M. and Saunders, M. 2000), p. 289, Pearson EducationLtd; Figure 5.6: Adapted from Assessment Issues in Higher Education, October, Department ofEmployment (Atkins, M. J., Beattie, J. and Dockrell, W. B. 1993), p. 51. Crown Copyright ©1993, reproduced under the terms of the Click-Use License; Figure 6.8: Adapted fromIntroduction to Psychology, third edition, McGraw-Hill (King, R. 1996). Reproduced with per-mission from the author, Professor Richard King; Figure 6.12: Adapted from Odd Perceptions,Methuen (Gregory, R. L. 1986), p. 71. Reprinted by permission of the publishers, Routledge,a division of Taylor & Francis, Ltd; Figures 6.13 and 8.5: Adapted from Interactive Behaviourat Work, third edition, Financial Times Prentice Hall (Guirdham, M. 2002). Reproduced with permission from Pearson Education Ltd; Figure 6.15: From Nick Fitzherbert appliesrules of magic to coaching business people in communication skills, www.fitzherbert.co.uk,with permission from Nick Fitzherbert; Figure 7.9: Adapted from Managerial Attitudes andPerformance, Irwin (Porter, L. W. and Lawler, E. E. 1968), p. 165. Copyright © Richard D.Irwin Inc., reprinted by permission of The McGraw-Hill Companies, Inc; Figure 7.13:Adapted from ‘Knowledge Workers: The New Management Challenge’, Professional Manager,

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November, p. 13 (Tampoe, M. 1994). Reproduced with permission from the CharteredManagement Institute; Figure 7.15: Adapted from Work Redesign, Addison-Wesley(Hackman, J. R. and Oldham, G. R. 1980), Figure 4.6, p. 90. Reproduced with permissionfrom Pearson Education, Inc.; Figure 8.1: Adapted from Beyond the Team, Butterworth-Heinemann (Belbin, R. M. 2000). Copyright © 2000. Reproduced with permission fromElsevier Ltd; Figure 9.2: Adapted from Behavior in Organisations, sixth edition, Prentice Hall(Greenberg, J. and Baron, R. A. 1995), p. 306. Reproduced with permission from PearsonEducation, Inc.; Figure 10.2: Adapted from Action-Centred Leadership, Gower Press (Adair, J.1979), p. 10. Reproduced with permission from John Adair; Figure 10.4: Reprinted by per-mission of Harvard Business Review from ‘How to Choose a Leadership Pattern’, HarvardBusiness Review, May/June, p. 167 (Tannenbaum, R. and Schmidt, W. H. 1973). Copyright ©1973 by Harvard Business School Publishing Corporation, all rights reserved; Figure 10.5:Adapted from A Theory of Leadership Effectiveness, McGraw-Hill (Fielder, F. E. 1967), p. 146.Reproduced with permission from Fred E. Fielder; Figure 10.7: Adapted from The SituationalLeadership®. Copyright © 2006. Reprinted with permission of the Center for LeadershipStudies, Inc., Escondido, CA 92025 (www.situational.com). All rights reserved; Figure 10.9:Adapted from Leadership for Innovation: The Impact of Leadership on Innovation, AdvancedInstitute of Management Research (AIM) (Munshi, N. et al. 2005), Figure 5, p. 18.Reproduced with thanks to AIM fellows and scholars: A. Munshi, A. Oke, P. Puranam, M.Stafylarakis, S. Towells, K. Moeslein and A. Neely; Figure 10.10: Adapted from ‘A Good Fit IsEssential’, Professional Manager, vol.15, no. 3, May, p. 38 (Cutler, A. 2005). Reproduced withpermission from Chartered Management Institute and Alan Cutler; Figure 11.1: Adaptedfrom Management, Organisation and Employment Strategy, Routledge & Kegan Paul (Watson,T. J. 1986), p. 29. Reproduced by permission of Routledge, a division of Taylor & Francis,Ltd; Figure 11.3: Adapted from ‘Managing in the 21st Century’, Manager, The British Journalof Administrative Management, January/February, p. 10 (Moorcroft, R. 2000). Reproducedwith permission from The Institute of Administrative Management; Figure 11.6: Reprintedwith permission of Harvard Business Review from ‘The Manager’s Job: Folklore and Fact’,Harvard Business Review Classic, March–April, p. 168 (Mintzberg, H. 1990). Copyright ©1990 by Harvard Business School Publishing Corporation, all rights reserved. Reprinted bypermission of Harvard Business Review; Figure 12.1: Adapted from Leadership Dilemmas –Grid Solutions, Butterworth-Heinemann (Blake, R. R. and McCanse, A. A. 1991), grid figure, p. 29, paternalism figure, p. 30 and opportunism figure, p. 31. Copyright © Elsevier 1991;Figure 12.2: Adapted from The Human Organization, McGraw-Hill (Likert, R. 1967), p. 137.Reproduced with permission from the McGraw-Hill Companies, Inc.; Figure 13.3: Adaptedfrom ‘Appraising Employee Performance’, Professional Manager, July, p. 31 (Kermally, S.2002). Reproduced with permission from the Chartered Management Institute; Figure 15.4:Adapted from ‘The Structures Behind Global Companies’, in Pickford, J. (ed) MasteringManagement 2.0, Financial Times Prentice Hall, p. 76 (Birkinshaw, J. 2001). Reprinted with permission from Julian Birkinshaw; Figure 15.5: Adapted from Industrial Organization:Theory and Practice, second edition, Oxford University Press (Woodward, J. 1980), p. 128.Reproduced by permission of Oxford University Press; Figure 15.6: Adapted from People inOrganisations, second edition, McGraw-Hill (Mitchell, T. R. 1982), p. 32. Reprinted with permission from The McGraw-Hill Companies, Inc.; Figure 15.7: Adapted from ReedBusiness Information Ltd. Copyright © Reed Business Information Ltd., reprinted with per-mission; Figure 15.10: Adapted from Organisational Behaviour: Concepts and Applications,fourth edition, Merrill/Prentice Hall (Gray. J. L. and Starke. F. A. 1988), p. 431. Reproducedwith permission from Pearson Education, Inc; Figure 16.2: Adapted from Organisations andTechnical Change: Strategy, Objectives and Involvement, Routledge/ITBP (Preece, D. A. 1995),p. 7; Figure 17.3: Adapted from Organization: Contemporary Principles and Practice, BlackwellPublishing (Child, J. 2005), p. 121. Reprinted by permission of Wiley-Blackwell; Figure 17.4:Adapted with permission of The Free Press, a Division of Simon & Schuster, Inc. fromComparative Analysis of Complex Organizations, revised edition by Amitai Etzioni. Copyright ©1961 by The Free Press. All rights reserved; Figure 19.1: Adapted from Exploring Corporate

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Strategy, seventh edition, Financial Times Prentice Hall (Johnson, G., Scholes, K. andWhittington, R. 2005), p. 202. Reproduced with permission of Pearson Education Ltd;Figure 19.2: Adapted from ‘Get engaged’, Management Today, April, p. 40 (De Vita, E. 2007).Reproduced from Management Today magazine with the permission of the copyright owner,Haymarket Business Publications Limited; Figure 20.1: From Understanding Organizations,fourth edition, Penguin Books (Handy, C. B. 1993), p. 15. Copyright © Charles Handy, 1976,1981, 1985, 1993, 1999. Reproduced by permission of Penguin Books Ltd; Figure 20.2: ‘TheMcKinsey 7-S Framework’ from In Search of Excellence: Lessons From America’s Best RunCompanies by Peters, T J. and Waterman, Jr, R. H. Copyright © 1982 by Thomas J. Peters andRobert H. Waterman, Jr. Reprinted by permission of HarperCollins Publishers; Figure 20.3:Adapted from The Democratic Enterprise, Financial Times Prentice Hall (Gratton, L. 2004), p. 35. Reproduced with permission of Pearson Education Ltd; Figure 20.5: Adapted fromEFQM (www.efqm.org). Copyright © 2009 EFQM. The EFQM Excellence Model is a regis-tered trademark of the EFQM; Figure 20.6: Adapted from Living Strategy: Putting People at the Heart of Corporate Purpose, Financial Times Prentice Hall (Gratton, L. 2000), p. 101.Reproduced with permission of Pearson Education Ltd; Figure 20.7: Adapted fromManagement Futures: The World in 2018, March, Chartered Management Institute (CharteredManagement Institute 2008), Figure 1, p. 14. Reproduced with permission.

TablesTable 1.1: Adapted from ‘The Customized Workplace’, in Chowdhury, S. (ed.) Management21C, Financial Times Prentice Hall (Bouchikhi, H. and Kimberly, J. R., 2000), p. 215.Reproduced with permission of Pearson Education Ltd; Table 3.1: Adapted from ‘Service IsDifferent’, The TQM Magazine, vol. 6, no. 1, p. 6 (Macdonald, J. 1994). Copyright © EmeraldGroup Publishing Limited, all rights reserved; Table 3.2: Adapted from OrganizationalBehavior: Concepts and Applications, fourth edition, Merrill Publishing Company (Gray, J. L.and Starke F. A. 1988), p. 432. Reproduced with permission from Pearson Education Inc.;Table 4.4: Adapted from Identity and the Life Cycle (Erikson, E. H.). Copyright © 1980 by W.W. Norton & Company, Inc. Copyright © 1959 by International Universities Press, Inc. Usedby permission of W. W. Norton & Company, Inc; Table 4.6: Adapted from ‘Feeling andSmiling’, The Psychologist, vol. 12, no. 1, January, pp. 16–19 (Briner, R. 1999). Reproducedwith permission from the British Psychological Society; Table 5.1: Adapted from ‘The DebateStarts Here’ in People Management in Perspective: A Collection of Key Articles Published in the LastYear on Training and Development, IPD, April, pp. 16–17 (Burgoyne, J., Cunningham, I.,Garratt, B., Honey, P., Mayo, A., Mumford, A., Pearn, M. and Pedler, M. 1999). Reproducedwith permission from Chartered Institute of Personnel and Development (CIPD); Table 6.1:Adapted from Perceptual Distortion of Height as a Function of Ascribed Academic Status,Journal of Social Psychology, no. 74, pp. 97–102 (Wilson, P. R., 1968). Copyright 1968 byTaylor & Francis Informa UK Ltd. – Journals. Reproduced with permission of Taylor & FrancisInforma UK Ltd. – Journals in the format Textbook via Copyright Clearance Center, Inc.;Table 6.2: Adapted from People in Organisations, second edition, McGraw-Hill (Mitchell, T. R.1982), p. 104. Reprinted with permission from The McGraw-Hill Companies, Inc.; Table7.1: Adapted from Motivation and Work Behaviour, fifth edition, McGraw-Hill (Steers, R. M.and Porter, L. W. 1991), p. 35. Reprinted by permission of The McGraw-Hill Companies,Inc; Table 7.3: Adapted from ‘Job Satisfaction: A Method of Analysis’, Personnel Review, vol.20, no. 3, p. 14 (Mumford, E. 1991). Copyright © Emerald Group Publishing Limited. Allrights reserved; Table 9.1: Adapted from Team Roles at Work, Butterworth-Heinemann (Belbin,R. M. 1993), p. 23. Reproduced with permission of Belbin Associates (www.belbin.com);Table 12.1: Adapted from Leadership Dilemmas – Grid Solutions, Butterworth-Heinemann(Blake, R. R. and McCanse, A. A. 1991), p. 29. Copyright © Elsevier 1991; Table 15.1:Adapted from The Analysis of Organisations, second edition, John Wiley & Sons (Litterer, J. A.1973), p. 339. Reproduced with permission from the estate of Joseph A. Litterer; Table 16.1:Adapted from Organisations and Technical Change: Strategy, Objectives and Involvement,

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Routledge/ITBP (Preece, D. A., 1995); Table 17.1: Adapted from Industrial Organisation:Theory and Practice, second edition, Oxford University Press (Woodward, J. 1980), p. xxi.Reproduced by permission of Oxford University Press.

TextPage 35: Exercise after ‘So What’s Your Work Ethic?’, Professional Manager, May, p. 38 (2003).Reproduced with permission from the Chartered Management Institute and Your FutureLooks Bright, Preston Beach, p. 98 (Walmsley, C. J. 2002); 71: Activity adapted from HumanRelations: A Job-Oriented Approach, Reston/Prentice Hall (DuBrin, A. J. 1978), pp. 296–7.Reproduced with permission from Pearson Education, Inc.; 115: Activity adapted from ‘OurOrganizational Society: Your Association with Organizations’ in Experimental Exercises andCases in Management, McGraw-Hill, pp. 13–15 (Kast, F. E. and Rosenzweig. J. E. 1976).Reproduced with permission from the McGraw-Hill Companies, Inc; 163: Article from ‘The Apprentice, Week Nine’, People Management Online, 27 May 2009 (Ball, M.) (www.peoplemanagement.co.uk). Reproduced by permission of People Management magazine andthe author; 201: Article from ‘UK Follows Dutch Example with Site Simulations’, PeopleManagement Online, 20 May 2009 (Phillips, L.), (www.peoplemanagement.co.uk).Reproduced by permission of People Management magazine and the author; 215: Exhibitadapted from Diversity Resource Handbook (Portsmouth Hospitals NHS Trust). Reproducedwith permission; 215 and 217: Extracts from Going Dutch in Beijing, Profile Books (McCrum,M. 2007). Reproduced by permission of Profile Books Ltd; 245: Article adapted from ‘Howto Be Happy in Life: Let Out Your Anger’, Observer, 1 March (Hill, A. 2009). Copyright ©Guardian News & Media Ltd 2009; 332: Exhibit adapted from In Search of EuropeanExcellence, Profile Books (Heller, R. 1997), p. 231. Reprinted by permission of A. P. Watt Ltd.on behalf of Heller Arts Ltd. and Profile Books Ltd; 409: Activity adapted from ManagingOrganizational Behaviour, fourth edition, John Wiley & Sons (Schermerhorn, J. R., Jr, Hunt, J.G. and Osborn, R. N. 1991), p. 484. Reproduced with permission from John Wiley & SonsInc; 409: Exercise adapted from The Path to Leadership: Developing a Sustainable Model withinOrganisations, CBI in association with Harvey Nash (Confederation of British Industry2005). Reproduced with kind permission of CBI and Caspian Publishing Ltd; 487: Exerciseadapted from ‘Do People Trust You?’, Professional Manager, vol. 14, July, p. 32 (Bibb, S. andKourdi, J., 2004). Reproduced with permission from Chartered Management Institute; 510:Exhibit from ‘War Goes On for the Talent Pool’, Professional Manager, vol. 17, no. 1, January,p. 25 (Mann, S. 2008). Reproduced with permission from Chartered Management Institute;578: Activity adapted from Organization: Contemporary Principles and Practice, BlackwellPublishing (Child, J., 2005), p. 22. Reprinted by permission of Wiley-Blackwell; 607: Exhibitadapted from ‘Home Alone Stir Crazy’, Management Today, March, p. 75 (Eatherden, R.2005). Reproduced with permission from Haymarket Publishing Ltd; 644: Exhibit adapted from Trades Union Congress Report of Congress 2007 (Trades Union Congress 2007),pp. 19–20. Reproduced with permission from Trades Union Congress; 697: Activity adaptedfrom Organizational Behaviour: An Experimental Approach, seventh edition, Prentice Hall(Osland, J. S., Kolb, D. A., and Rubin, I. M., 2001), p. 381, Copyright © Pearson Education,Inc. reproduced with permission; 698: Exercise adapted from ‘People Who Can’t Let Go’,Management Today, March, p. 47 (Kirwan-Taylor, H. 2007). Reproduced from ManagementToday magazine with the permission of the copyright owner, Haymarket BusinessPublications Limited; 765: Article from ‘The Time Is Ripe for Fresh Ideas’, Financial Times, 5 February 2009 (Gratton, L.); 766: Activity from ‘Understanding Your Organisation’s Imageand Style’ (www.lm.learningmatters.com) with permission from Echelon Learning Ltd; 767:Activity adapted from ‘Rate Your Readiness to Change’, Fortune, 7 February 1994, pp. 63–4(Stewart, T. A.). Copyright © 1994 Time Inc. All rights reserved; 792: Extract adapted fromEFQM (European Foundation for Quality Management) (www.efqm.org); 807: Exerciseadapted from John Bourn for a UNISON distance learning course and is used with permis-sion of the Education Officer, UNISON Open College.

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The Financial TimesPage 34: Article from ‘A Melting Pot for Forging Success’, Financial Times, 8 March 2009(Marsh, P.); 70: From ‘The Story of the Middleman’, Financial Times, 25 February 2009(Stern, S.); 291: From ‘Top Marks for the Best Employee Awards’, Financial Times, 11 May2009 (Rigby, R.); 335: From ‘Dragon Boat Racing on the Thames’, Financial Times, 4 April2009 (Bliss, D.); 366: From ‘Falling Down’, Financial Times, 3 June 2009 (Stern, S.); 407:From ‘Managing the Mood Is Crucial’, Financial Times, 23 March 2009 (Stern, S.); 450: From‘Science of Managing Monkeys’, Financial Times, 20 May 2009 (Stern, S.); 529: From ‘TheCarrot and Stick Approach’, Financial Times, 28 May 2009 (Clegg, A.); 577: From ‘A TaxingMerger’, Financial Times, 10 July 2008 (Houlder, V.); 647: From ‘Should Twitter Be Confinedto the Marketing Department?’, Financial Times, 13 May 2009; 695: From ‘The UndercoverBoss’, Financial Times, 8 June 2009 (Stern, S.); 728: From ‘Trade-offs in the Moral Maze’,Financial Times, 9 March 2009 (Jones, A.); 804: From ‘How to Manage the Clever Squad’,Financial Times, 25 May 2009 (Stern, S.).

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‘Many of us spend a good deal of our life working. We make friends at

work, we learn about ourselves when we work, we grow and develop,

and we become innovative, energized and stimulated. Working co-

operatively with others, we are able to create positive energy that gives

us joy and added value to our companies. All of these wonderful

human experiences can take place during the times we are engaged

in work. I call these times Hot Spots. Hot Spots are places and times

when cooperation flourishes, creating great energy, innovation,

productivity and excitement. Hot Spots can be workplaces, teams,

departments, companies, factories, cities, industries, coffee shops,

hallways, conferences – any place or time where people are working

together in exceptionally creative and collaborative ways.’

Lynda Gratton (2007) Hot Spots, Financial Times Prentice Hall, p. xi.