MANAGEMENT AND ORGANISATIONALBEHAVIOURLAURIE J. MULLINS

SEVENTH EDITION

This market leading text guides students to a thorough understanding of organi-sational behaviour and relates this to effective management practice. It is aninvaluable resource, which provides a clear and insightful introduction tomanagement studies and acts as a comprehensive point of reference thereafter.

Additional student support atwww.booksites.net/mullins

MANAGEMENT ANDORGANISATIONAL BEHAVIOUR

Visit the Management and Organisational Behaviour, SeventhEdition Companion Website atwww.booksites.net/mullins to find valuable student learningmaterial including:

■ Multiple choice and short answer questions to help test your learning

■ Technology Solutions – short web articles which explore further themanagerial implications of technology

■ Weblinks to relevant sites on the web

■ An online glossary to explain key terms

About the author

Laurie J. Mullins was formerly principal lecturer at The Business School, Universityof Portsmouth. Before taking early retirement, Laurie specialised in managerialand organisational behaviour, and managing people at work, and was subjectleader for the behavioural and human resource management group.

Laurie had previous experience of business, local government and universityadministration and human resource management. For a numbr of years he wasalso a member of, and an instructor in, the Territorial Army.

He has undertaken a range of consultancy work; served as a visiting selectorfor UNAIS and VSO; acted as advisor and tutor for a number of professional andeducational bodies including UNISON Education; and served as an externalexaminer for university degree and postgraduate courses, and for professionalorganisations.

Laurie has undertaken a year’s academic exchange in the ManagementDepartment, University of Wisconsin, USA, and a visiting fellowship at the Schoolof Management, Royal Melbourne Institute of Technology (RMIT) University,Australia, and given invited lectures in The Netherlands and South Africa. Laurie is also author of Hospitality Mangement and Organisational Behaviour.

About the contributors

Linda Hicks is a Chartered Occupational Psychologist who specialises in management development and coaching within her consultancy ‘Zest for Change’.

David Preece is Professor of Technology Management and Organisation Studies inThe Business School, University of Teesside.

MANAGEMENT ANDORGANISATIONALBEHAVIOUR

Laurie J. MullinsFormerly, Principal Lecturer

The Business School

University of Portsmouth

Seventh Edition

PPeeaarrssoonn EEdduuccaattiioonn LLiimmiitteedd

Edinburgh GateHarlow Essex CM20 2JEEngland

and Associated Companies throughout the world

Visit us on the World Wide Web at:www.pearsoned.co.uk

First published in 1985 in Great Britain under the Pitman imprintFifth edition published in 1999 by Financial Times Pitman Publishing imprintSixth edition 2002Seventh edition 2005

© Laurie J Mullins 1985, 1989, 1993, 1996, 1999, 2002, 2005© Chapter 9 Linda Hicks 1993, 1996, 1999, 2002, 2005© Chapter 10 Linda Hicks 1999, 2002, 2005© Chapter 17 David Preece 1999, 2002, 2005

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

All rights reserved. No part of this publication may be reproduced, stored in a retrievalsystem, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without either the prior written permission of the publisher, or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP.

All trademarks used herein are the property of their respective owners. The use of anytrademark in this text does not vest in the author or publisher any trademark ownershiprights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners.

ISBN 0 273 68876 6

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

Library of Congress Cataloging-in-Publication DataMullins, Laurie J.

Management and organisational behaviour / Laurie J. Mullins.--7th ed.p. cm

Includes bibliographical references and index.ISBN 0–273–68876-6 (pbk.)1. Organizational behavior. I. Title

HD58.7.M85 2004658--dc22

2004046919

10 9 8 7 6 5 4 3 209 08 07 06 05

Typeset by 30 in Stone SerifPrinted and bound by Mateu-Cromo, Artes Graficas, Spain

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

To PamelaAnd for Kerrie and Tracey,and Paul

Part 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR 1

1 Introduction 32 The Nature of Organisational Behaviour 253 Approaches to Organisation and Management 65

Part 2 THE ORGANISATIONAL SETTING 111

4 The Nature of Organisations 1135 Organisational Goals, Strategy and Responsibilities 144

Part 3 THE ROLE OF THE MANAGER 187

6 The Nature of Management 1897 Managerial Behaviour and Effectiveness 2368 The Nature of Leadership 280

Part 4 THE INDIVIDUAL 333

9 Individual Differences 33510 The Nature of Learning 38911 The Process of Perception 43412 Work Motivation and Rewards 470

Part 5 GROUPS AND TEAMWORK 515

13 The Nature of Work Groups and Teams 51714 Working in Groups and Teams 554

Part 6 ORGANISATIONAL STRUCTURES 593

15 Organisation Structure and Design 59516 Patterns of Structure and Work Organisation 63317 Technology and Organisations 662

Part 7 MANAGEMENT OF HUMAN RESOURCES 697

18 Job Satisfaction and Work Performance 69919 Human Resource Management 74620 Resourcing the Organisation 795

Part 8 IMPROVING ORGANISATIONAL PERFORMANCE 829

21 Organisational Control and Power 83122 Organisation Development (Culture, Conflict and Change) 88723 Management Development and Organisational Effectiveness 941

CONTENTS IN BRIEF

‘OH, GREAT SPIRIT,

GRANT THAT I MAY NOT

CRITICISE MY NEIGHBOURS

UNTIL I HAVE WALKED A MILE

IN THEIR MOCCASINS.’

Traditional Native-American saying

Exhibits, Management in Action, Case Studies andBusiness Press xivIn acknowledgement and appreciation xviiPublisher’s acknowledgements xviiiGuided tour of the book xxGuided tour of the Companion Website xxii

Part 1MANAGEMENT AND ORGANISATIONALBEHAVIOUR

1 Introduction 3About this book 4The aims of this book 4The seventh edition 6Your study of the book 16The changing nature of work organisation 17The study of management and organisational

behaviour 19The use of case studies 20

2 The Nature of OrganisationalBehaviour 25

The meaning of organisational behaviour 26Influences on behaviour in organisations 27Behavioural science – a multidisciplinary approach 29The importance of people and organisational

behaviour 30Organisational metaphors 32Orientations to work and the work ethic 33Management as an integrating activity 34The psychological contract 37Changing nature of the psychological contract 39Organisational practices 40The Peter Principle 40Parkinson’s Law 41The need for a cross-cultural approach 42Is organisational behaviour culture-bound? 43Models for understanding the impact of culture 44Five dimensions of culture: the contribution of

Hofstede 47Cultural diversity: the contribution of Trompenaars 49Summary: convergence or culture-specific

organisational behaviour 51Case study 2.1: Eric and Kipsy: complexities of

management and organisational behaviour 56

3 Approaches to Organisation andManagement 65

Management theory 66Developments in management and organisational

behaviour 66The classical approach 67Scientific management 69Relevance of scientific management 71Bureaucracy 74Criticisms of bureaucracy 75Evaluation of bureaucracy 76Structuralism 78The human relations approach 78Evaluation of the human relations approach 80Neo-human relations 81The systems approach 82The contingency approach 84Other approaches to the study of organisations 84The decision-making approach 85Social action 85A number of different approaches 87Postmodernism 87Relevance to management and organisational

behaviour 89Japanese management 90Towards a scientific value approach? 91Benefits to the manager 93Management in Action 3.1: Japanese management 95Case study 3.1: Helgaton Ltd: organisational theory

in practice 102

Part 2THE ORGANISATIONAL SETTING

4 The Nature of Organisations 113

The context of the organisation 114The formal organisation 115Basic components of an organisation 117Private and public sector organisations 118Production and service organisations 120Types of authority and organisations 121The classification of organisations 122Prime beneficiary of the organisation 122Primary activity of the organisation 123

CONTENTS IN DETAIL

The organisation as an open system 124Interactions with the environment 126The comparative study of organisations 127Organisational sub-systems 128The analysis of work organisations 129Contingency models of organisation 131The influence of technology 132Information technology 133Managing technical change 134The informal organisation 134The organisation of the future 137Organisational goals 137

5 Organisational Goals, Strategy andResponsibilities 144

The nature of organisational goals 145The functions of goals 146Integration of goals 147Classification of organisational goals 148Alteration of goals 149Organisational ideologies and principles 150Mission statements 151Objectives and policy 152The profit objective 154Fallacy of the single objective 155The need for strategy 157The concept of synergy 158SWOT analysis 159The management of opportunities and risks 160Social responsibilities of organisations 161Codes of conduct 162Organisational stakeholders 163Values and ethics 166Corporate social responsibility 167Business ethics 168Related legislation 170An integrated approach 171Management in Action 5.1: IBM Code of Conduct 177Case study 5.1: Mergers and acquisitions: the

consequences of expansion at Square Deal plc 182Case study 5.2: Welcome to the party: home selling

with Top-to-Toe 183

Part 3THE ROLE OF THE MANAGER

6 The Nature of Management 189The meaning of management 190Management and administration 194The process of management 195

Principles of management 197Management as a social process 199The tasks and contribution of a manager 199Essential nature of managerial work 200The efforts of other people 202Management in service industries 203Management in private enterprise and public

sector organisations 203The work of a manager 206Managerial roles 207Behaviour pattern of general managers 209Determining what real managers do 210Patterns of managerial work and behaviour 210The attributes and qualities of a manager 211Managers of the future? 214Management in Action 6.1: The roles of the

manager and the Individual Management Model 217Case study 6.1: What is management? Defining

the manager’s role 227

7 Managerial Behaviour and Effectiveness 236

Managerial style and behaviour 237Managers’ attitude towards people 238Japanese ‘Theory Z’ environment 240The Managerial/Leadership Grid® 241Framework for patterns of behaviour 243Management systems 245System 4 management 246Management by Objectives (MBO) 249Evaluation of MBO 250Managing people 251Basic managerial philosophies 252Choice of managerial style 256Managerial effectiveness 259Measures of effectiveness 2613-D model of managerial behaviour 261General criteria of managerial effectiveness 264The management of time 265Case example: Chemical company 274Case study 7.1: Bringing management to book:

how to manage a library 275Case study 7.2: As safe as houses: branch

management in a building society 276

8 The Nature of Leadership 280The meaning of leadership 281The importance of leadership 282Leadership and management 283Approaches to leadership 285The qualities or traits approach 287The functional (or group) approach 287Leadership as a behavioural category 289

viii CONTENTS IN DETAIL

Styles of leadership 291Continuum of leadership behaviour 292The situational approach 294Contingency theories of leadership 295Fiedler’s contingency model 295Vroom and Yetton contingency model 297The Vroom and Jago revised decision model 298Path–goal theory 299Readiness of the followers or group 300Transformational leadership 301Inspirational leadership 304Power and leadership influence 306The leadership relationship 307No one best form of leadership 309National cultural dimensions of leadership 310Effectiveness of leadership styles 312Variables affecting leadership effectiveness 313Leadership development 314Leaders of the future 315Management in Action 8.1: Autoglass: Leadership

success factors 317Management in Action 8.2: IBM Leadership

Development Centre (LDC) 318Case study 8.1: The paradox of Pim Fortuyn: a study

in charismatic leadership 327

PART 4THE INDIVIDUAL

9 Individual Differences 335

By Linda HicksThe changing nature and scope of managing

individuals at work 336Personality 339Nomothetic and idiographic approaches 342Theoretical approaches: nomothetic 343Theoretical approaches: idiographic 346Other theoretical approaches 347Cognitive theory: Kelly’s personal construct theory 350Applications within the work organisation 352Stress and the individual 354Ability 355Testing 360Attitudes 362Gender and organisations 366Understanding women’s position and status 368Economic theories 369Psychological sex differences 369The socialisation process 370Orientations and motivations towards work 370Working practices 371

Career development 372Leadership, management and women 376Positive approaches 378

10 The Nature of Learning 389

By Linda HicksThe meaning and nature of learning 390Organisations and the management of learning 394Knowledge management 395The learning organisation 399How do people learn? 402Behaviourism 403The outcomes of learning 405Operant conditioning 405Social learning 408Limitations of the behaviourist school 408Cognitive theories 409Learning styles 413Complex models of learning 414Creativity 415Facilitating learning 417Learning theory applied to study skills 420Applications of learning theory to organisations 420Case study 10.1: Springboard to success: staff

development in practice 425Case study 10.2: Will the mail get through:

managing change at the Royal Mail 427

11 The Process of Perception 434

By Laurie Mullins and Linda HicksThe perceptual process 435Selectivity in attention and perception 435Meaning to the individual 437Internal factors 437External factors 440Organisation and arrangement of stimuli 441Perceptual illusions 442Perceiving other people 445Transactional analysis 448Selection and attention 450Organisation and judgement 452The importance of body language 453Attribution theory 455Perceptual distortions and errors 456Stereotyping 457The halo effect 458Perceptual defence 459Projection 459Illustrative example: perception of women 459

12 Work Motivation and Rewards 470The meaning of motivation 471Needs and expectations at work 472Motivation and organisational performance 474

CONTENTS IN DETAIL ix