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Textbook!!Organizational Behavior A Practical, Problem-Solving Approach 3rd Edition.pdf

Angelo Kinicki


A Practical, Problem-Solving Approach


Angelo Kinicki
Arizona State University

Kent State University


A Practical, Problem-Solving Approach

Third Edition


Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2021 by McGraw-Hill
Education. All rights reserved. Printed in the United States of America. Previous editions © 2018 and 2016. No
part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or
retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in
any network or other electronic storage or transmission, or broadcast for distance learning.

Some ancillaries, including electronic and print components, may not be available to customers outside the
United States.

This book is printed on acid-free paper.

1 2 3 4 5 6 7 8 9 LWI 24 23 22 21 20

ISBN 978-1-260-07507-6 (bound edition)
MHID 1-260-07507-9 (bound edition)
ISBN 978-1-260-51625-8 (loose-leaf edition)
MHID 1-260-51625-3 (loose-leaf edition)

Executive Portfolio Manager: Michael Ablassmeir
Lead Product Developer: Kelly Delso
Product Developer: Anne Ehrenworth
Executive Marketing Manager: Debbie Clare
Content Project Managers: Harvey Yep (Core) / Keri Johnson (Assessment)
Buyer: Susan K. Culbertson
Design: Matt Diamond
Content Licensing Specialist: Carrie Burger
Cover Image: © malerapaso/Getty Images
Compositor: Aptara®, Inc.

All credits appearing on page or at the end of the book are considered to be an extension of the copyright page.

Library of Congress Control Number: 2019920084

The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does
not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not
guarantee the accuracy of the information presented at these sites.

To the thousands of students I encountered during my career. Thank you for making
me a better teacher and writer.

— Angelo






r nizational performance. Angelo has published over 95 articles in a variety of academic journals

and proceedings and is co-author of eight text-
books (32 including revisions) that are used by
hundreds of universities around the world.
Several of his books have been translated into
multiple languages, and two of his books were
awarded revisions of the year by McGraw-Hill.
Angelo also was identified as being among the
top 100 most influential (top .6%) Organizational
Behavior authors in 2018 out of a total of 16,289

Angelo is a busy international consultant and
is a principal at Kinicki and Associates, Inc., a
management consulting firm that works with top
management teams to create organizational
change aimed at increasing organizational effec-
tiveness and profitability. He has worked with
many Fortune 500 firms as well as numerous
entrepreneurial organizations in diverse indus-
tries. His expertise includes facilitating strategic/
operational planning sessions, diagnosing the
causes of organizational and work-unit problems,
conducting organizational culture interventions,
implementing performance management sys-
tems, designing and implementing performance
appraisal systems, developing and administering
surveys to assess employee attitudes, and lead-
ing management/executive education programs.
He developed a 3600 leadership feedback
instrument called the Performance Management
Leadership Survey (PMLS) that is used by com-
panies throughout the world.

Angelo and his wife of 37 years, Joyce, have
enjoyed living in the beautiful Arizona desert for
36 years. They are both natives of Cleveland,
Ohio. They enjoy traveling, hiking, and spending
time in the White Mountains with Gracie, their
adorable golden retriever. Angelo also has a pas-
sion for golfing.

Angelo Kinicki is an emeritus professor of
management and held the Weatherup/Overby
Chair in Leadership from 2005 to 2015 at the
W.P. Carey School of Business at Arizona State
University. He joined the faculty in 1982, the
year he received his doctorate in business
administration from Kent State University. He
was inducted into the W.P. Carey Faculty Hall
of Fame in 2016. Angelo currently is the Dean’s
Scholar in Residence at Kent State University.
He is teaching in the MBA program and serves
on the Dean’s National Advisory Board.

Angelo is the recipient of six teaching awards
from Arizona State University, where he taught in
its nationally ranked MBA and PhD programs. He
also received several research awards and was
selected to serve on the editorial review boards
for four scholarly journals. His current research
interests focus on the dynamic relationships
among leadership; organizational culture; organi-
zational change; and individual, group, and orga-

Courtesy of Angelo Kinicki









nwe have included a variety of new exercises to our already robust Connect offering:• Problem-Solving Application Case Analyses:
All problem-solving application mini-cases
and end-of-chapter cases are now assignable
as case analyses in Connect. These exercises
give students the opportunity to analyze a
situation and to apply the 3-Step Problem-
Solving Approach. Student knowledge and
proficiency are assessed using high-level
multiple-choice questions that focus on both
the problem-solving approach and on the
key topics of each chapter.

• Application-Based Activities: Students can
gain valuable practice using problem-
solving skills to apply their knowledge to
realistic scenarios. Included in this edition
are two types of Application-Based Activities:
Role-Playing mini-simulations that allow
students to make decisions and see, in real
time, the impact of those decisions; and
Self-Assessments, which are research-based
surveys that students can take to gain fur-
ther introspection into how organizational
behavioral concepts apply to them.

• Cumulative Case: This capstone activity
provides students the opportunity to apply
the 3-Step Problem-Solving Approach on an
actual situation affecting a specific firm
(Tesla). Because the case examines issues at
the individual, group, and organizational
levels of analysis at Tesla, it can be used in
parts or as a comprehensive assignment or
exam. All told, this activity presents stu-
dents with a rich and practical example to
apply their OB knowledge and problem-
solving skills.

• iSeeIt Videos: Brief, contemporary intro-
ductions to key course concepts that often
perplex students, this series will enhance
your student-centered instruction by offer-
ing your students dynamic illustrations that
guide them through the basics of core OB
concepts such as motivation, leadership,
socialization, and more.

• Manager’s Hot Seat Videos: These vignettes
allow students to assume the role of a man-
ager as they immerse themselves in real-life
situations. Students see how managers deal
with employees and complex issues, and use
critical-thinking skills in defining their
approach and course of action–while
learning from the manager’s mistakes.

We are pleased to share these
exciting updates and new additions
to the third edition of
Organizational Behavior!

In this new edition, we have better integrated
the 3-Step Problem-Solving Approach through-
out, and clarified its relationship to the Orga-
nizing Framework for Understanding and
Applying OB. In addition:

• Winning at Work boxes at the beginning of
every chapter offer career-readiness guid-
ance for students on a variety of timely,
pertinent topics.

• OB in Action boxes illustrate OB concepts
or theories in action in the real world,
featuring well-known companies and

• Applying OB boxes offer students
“how-to” guidance on applying OB
knowledge in their lives. The importance
of career readiness is stressed in many
of these boxes throughout the book,
indicated with a “Career Readiness”

• Problem-Solving Application boxes provide a
minicase for students to analyze, using the
3-Step Problem-Solving Approach.

• Takeaways for Me and Takeaways for
Managers conclude each chapter,
explaining in direct terms practical appli-
cations of the chapter content from the
student’s perspective as an employee and
a manager.

• Problem-Solving Application Cases at the
end of each chapter provide a complex and
current case with one or more problems
that pertain to concepts discussed in the

• Legal/Ethical Challenges provide a conclud-
ing exercise in each chapter and ask stu-
dents to choose from several courses of
action or invent their own to resolve a
business situation involving ethics
at work.

In our continuing efforts to help students move
from comprehension to application, and to
ensure they see the personal relevance of OB,


In each chapter we have refreshed examples,
research, figures, tables, statistics, and photos,
as well as streamlined design to ease navigation
and improve readability. We have also largely
replaced the topics in such popular features as
Winning at Work, Legal/Ethical Challenges,
Problem-Solving Application mini cases, and
Problem-Solving Application Cases. New in
this edition, each chapter concludes with a sec-
tion entitled “Making Connections,” in which
we provide a list of specific applications of
chapter content for students and managers.
Beyond these valuable changes, the following
outlines some of the more notable changes by

• New content on the implications of OB for

students’ jobs and careers.

• Expanded and enhanced section on ethics,
including expanded treatment on the preva-
lence of cheating and other forms of unethi-
cal conduct at school and work; revised and
further developed section on ethical dilem-
mas and whistleblowers; revised and
enhanced content on the importance of soft
versus hard skills; expanded explanation of
the importance of self-awareness for personal
development and job and career success.

• Updated survey results outlining skills most
sought by employers.

• New Winning at Work feature provides
insight and guidance on how to deal with
challenges in the hiring process, including
the growing role of artificial intelligence
and how to effectively get past these virtual

• New Applying OB feature on how self-
awareness can help one build a fulfilling career.

• Updated and refined the 3-Step Approach
to Solving Problems Using OB.

• New content on the factors that shape the

values of Generation Z; increasing
employee commitment, with best practices
used by Hilton, Salesforce, and Cisco.

• New examples clarify content about
Schwartz’s value theory and explain
cognitive dissonance.

• Updated statistics on employee engagement
around the world; new data on employee

satisfaction in the U.S.; new statistics on
telecommuting; new research on accounting/
financial performance and customer
service/satisfaction as outcomes of job

• New Winning at Work feature on creating
your own sense of employee engagement.

• New Problem-Solving Application features
on McDonald’s workers protesting sexual
harassment at work; Netflix’s approach to
sexual harassment in the workplace.

• New OB in Action feature on how compa-
nies foster employee engagement.

• New Applying OB features on ways to
implement telecommuting for employees;
using job satisfaction to reduce employee

• New end-of-chapter Problem-Solving
Application Case on Walmart’s values
under scrutiny.

• New section on the dark side of personal-

ity, the dark triad: narcissism, psychopathy,
and Machiavellianism; new coverage of
emotional intelligence, including the most
recent research and ways in which to
develop one’s EI; new content on the
potential and actual success of introverts in
the workplace; new content on how to
manage emotions during the job search

• Expanded section on brain training, using
current research findings and applications;
streamlined treatment of multiple intelli-
gences with new, compelling examples;
updated and streamlined material related to
core self-evaluations.

• Updated research and practical implications
of intelligences, linking Big 5 personality
dimensions to performance.

• New Winning at Work feature illustrating
the career implications of OB, with
guidance on which interview questions
students should be prepared to answer
and ask.

• New Applying OB features on what to look
for in a manager; managing emotions
during the job search.

• New OB in Action features on intelligence
testing; one of the richest self-made women
in America (who also epitomizes self-


research and examples on job design, job
crafting, and i-deals.

• New Winning at Work feature on how to
negotiate for a pay raise at work.

• New Problem-Solving Applications about
employee benefits at Walmart; symphony
orchestra members going on strike.

• New OB in Action feature about job swap-
ping and job rotation opportunities.

• New end-of-chapter Problem-Solving Appli-
cation Case on why Amazon workers are
not feeling motivated.

• New Legal/Ethical Challenge about
whether Sears executives should receive
bonuses while taking the company through

• New content on the primary outputs and

functions of performance management;
applied goalsetting to jobs and careers;
the major reasons performance manage-
ment is criticized; the growing role of
technology in performance management;
contemporary performance management,
highlighting that it is now continual and
includes more coaching and ongoing
feedback; how to improve performance

• Revised Winning at Work feature on best
practices for productivity.

• New Applying OB features on goal-setting;
responding to negative feedback; effective

• New OB in Action features on ID
checks; monitoring for performance; com-

• New Problem-Solving Application on incen-
tivizing teachers in one underperforming
school district.

• New end-of-chapter Problem-Solving
Application Case on the consequences
resulting from Wells Fargo’s use of

• New Legal/Ethical Challenge on the
practice of employers’ asking about current

• New content on positive and negative

deviance; how students can increase their

• New Problem-Solving Application on
Uber’s former CEO, Travis Kalanick.

• New end-of-chapter Problem-Solving
Application Case on the fall of John
Schnatter, founder of Papa John’s Pizza.

• New Legal/Ethical Challenge on drug
testing with the recent legalization of
marijuana in some states.

• New, expanded discussion and illustration

of the four stages of social perception;
new content on diversity, including new
discussion of assumptions about diversity
and new examples about the use of quotas
when it comes to hiring practices; new
example to elaborate on the self-serving

• New research on how a person’s appear-
ance affects our perception and their ability
to get hired; updated research on stereo-
types; new results of gender research;
updated trends and statistics related to
diversity, including the topic of pay equity
for men and women and research on unwel-
coming workplace environments.

• New Applying OB features on developing
cultural awareness to enhance perception;
the best companies for Millennial workers.

• New OB in Action features on the use of vir-
tual technologies for job interviews and recruit-
ment; how U.S. companies are using product
design to reach a diverse customer base.

• New Problem-Solving Application about
firefighters suing for age discrimination.

• Updated end-of-chapter Problem-Solving
Application Case on the diversity profile of
technology companies.

• New Legal/Ethical Challenge about patient
requests versus employees’ civil rights.

• New content on equity sensitivity.

• New illustrations of extrinsic and intrinsic
motivation; new examples to illustrate key
theories including Maslow’s theory, self-
determination theory, and equity/justice
theory; new examples to illustrate the
concept of goal setting and the application
of the job characteristics model.

• New research on employees’ opinions about
performance feedback and pay; updated



• Expanded and refined content on team
effectiveness, including new material on
the characteristics of high performing
teams and how to use conflict to improve

• Revised and expanded research and appli-
cation related to social-loafing (how to
prevent and overcome it); updated
research and content on team adaptive

• New Applying OB features on cultivating
cohesiveness to improve the function of
groups and teams; the benefits of
microinternships for both employers
and students.

• New OB in Action features on how
T-Mobile has changed their customer
service approach by working in teams; how
conflict and tension can be the key to better

• New end-of-chapter Problem-Solving
Application Case on the predicaments
that Boeing faces with its 737 Max

• New content on media richness; social

listening; generational differences regarding
the role of digital devices and communica-
tion expectations and norms; social media
and OB.

• New subsection on phubbing (phone
snubbing) and FOMO (fear of losing out);
new discussion on nondefensive communi-

• New research on media richness, managers’
use of empathy; tips on managing e-mail;
statistics on social media and OB.

• New OB in Action features on communica-
tion transparency at a skin-care company;
how empathy is good for business; crowd-
sourcing success stories at Lego and Frito-

• New Applying OB feature on how to ace a
video job interview.

• New end-of-chapter Problem-Solving
Application Case about United
Airlines’ turbulent communications

• New Legal/Ethical Challenge on whether
social media posts impact the cost of life
insurance premiums.

flourishing at school; turning rejection in the
job search process into positive motivation.

• Updated and expanded section on doing
well and doing good, including three quali-
fying criteria and further development of
how this occurs across levels of OB
( individual, group, and organizational);
expanded material on how to insert more
positivity in one’s work; organizational cli-
mate; revised material on the history and
current role of positivity in OB; prosocial

• Refined, updated, and expanded research,
applications, and benefits of mindfulness at
work; updated research and applications of
resilience, optimism, and signature
strengths at work.

• New Winning at Work feature on boosting
performance with productivity.

• New Applying OB features on how managing
internal responses can improve performance;
boosting positivity with a fun work environ-
ment; fostering positive candidate experi-
ences during job interviews.

• New OB in Action features on socially-
responsible investing; mindfulness at major
healthcare, biotech, and industrial compa-
nies; employee wellness via resistance
training at a major health system; how one
fast-casual health food business fosters posi-
tive culture

• New Problem-Solving Application on
Amazon’s acquisition of Whole Foods and
reckoning of the two companies’ values.

• New end-of-chapter Problem-Solving
Application Case on how aggressive mar-
keting created an opioid epidemic.

• New Legal/Ethical Challenge on hiring
those with criminal pasts.

• New section differentiating groups

and teams using three characteristics:
dependence, accountability, and time.

• Revised and updated content on formal and
informal groups and their respective func-
tions; group and team norms; types of
teams, especially related to virtual team
challenges and solutions; updated and
expanded content on trust: what it is, why it
is important, and how to repair it when



new research on the importance of
creativity and curiosity within

• New Winning at Work feature about how to
practice critical thinking skills for decision

• New OB in Action features on improving an
airport terminal under bounded rationality;
how big data helps advance the health care
industry; how shaking up your routine may
spark creativity.

• New Problem-Solving Application on how
cognitive bias was partly to blame for
California’s devastating wildfires.

• New end-of-chapter Problem-Solving
Application Case on Airbus’s decision
to cease production of its A380

• New Legal/Ethical Challenge on whether
college students should be expelled if
their parents cheated to get them into

• Revised content on common influence

tactics, including current and compelling
examples of students, #MeToo, and employ-
ees; political tactics, highlighting the
increasing activism by employees, students,
and other groups; political behavior, uncer-
tainty, performance, and change; the tactic
of blame and levels of political action;
apologies—when and how to use them

• Updated and expanded research on the five
bases of power, with a focus on negative
legitimate and referent power.

• New Applying OB features on social media
influencers; etiquette in the hiring process;
body art in the workplace.

• New OB in Action features on giving tax
breaks and other incentives to billion-dollar
companies; employee activism; the effects
of student activism on companies and

• New end-of-chapter Problem-Solving
Application Case on Nike and the MeToo

• New Legal/Ethical Challenge on companies
who impose their leaders’ values on

• New section on harassment—what it is and

how to prevent it at work.

• New content on functional versus dysfunc-
tional conflict: causes and outcomes;
intergroup conflict material; creating the
climate for psychological safety; framing
negotiation as a skill, task, or even a game—
with the goal of improving your attitude
related to negotiation and thus improving
the outcomes.

• Revised and updated content related to
conflict avoidance, including reasons why
people avoid conflict, how to avoid avoiding
conflict, and the desired outcomes of
conflict management.

• Expanded and updated sections related to
work-life conflict, with a new focus on har-
mony or integration of life’s; modern con-
flict at work; civility at work, including its
forms, prevalence, and costs; programming
functional conflict and conflict handling
styles; ethics and negotiations.

• New Applying OB features on how to
explain your departure from one job while
interviewing for another; psychological
safety at Google; how to ask for a larger
s alary or a raise.

• New OB in Action features on dealing with
conflict; the battle between two unions
involved in the creation of shows and

• New Problem-Solving Application on the
Fair Food Program.

• New Problem-Solving Application Case on
Facebook’s struggles with protection of
data and privacy.

• New Legal/Ethical Challenge on arbitration
versus litigation.

• New section on artificial intelligence and its

increasing use in decision making.

• Expanded discussion of Kahneman’s two
ways of thinking; updated information on
data analytic jobs and majors; new exam-
ples for the four types of decision-making
styles; new examples of bounded rationality,
intuition, big data, analytical decision mak-
ing, and creativity.

• New data on use of heuristics by physi-
cians; new statistics about use of big data;



• New Applying OB feature about key strate-
gies for cultivating a network and mentor-
ing relationship.

• New end-of-chapter Problem-Solving
Application Case about the culture clashes
at Ford Motor Company.

• New introductory section and illustration

that provide an overview of how organiza-
tional structure and innovation impact
organizational effectiveness.

• Shifted discussion of assessing organiza-
tional effectiveness to the end of the
chapter to provide a clearer link between
implementing organizational design
and evaluating its effectiveness using
various metrics, including the Balanced

• Updated examples on learning organiza-
tions; the seven types of organizational
structure; innovation in organizations.

• New research on the effects of open-office
design on individual, group, and organiza-
tional outcomes; updated research related
to learning organizations and innovation in

• New Problem-Solving Applications
about gig workers’ growing influence in the
labor market; AMD and its struggles to

• New end-of-chapter Problem-Solving
Application Case about one major book-
seller and the challenges it faces to stay in

• Updated Legal/Ethical Challenge about
universities’ tax-exempt status and the
response from their local communities.

• New section on confronting and effectively

overcoming failures at work.

• New material contrasting fatigue versus
tiredness and consequences at work; the
role and characteristics of change agents;
tips on overcoming resistance to change.

• Revised and expanded content on forces for
change; updated material on using missions
to motivate change; revised content on
resistance to change—its causes and how to
overcome it; revised content on stress at
work, including statistics, causes, and costs.

• New section on abusive supervision and

what strategies organizations can imple-
ment to eliminate such behavior.

• New content on the leadership model devel-
oped by Kouzes and Posner; the four ways
of creating psychological empowerment;
the four behaviors demonstrated by trans-
formational leaders.

• New statistics on why leadership is so
important in today’s organizations; new
research on leadership traits and task and
relational leadership; new research about
leader- member exchange model of

• New OB in Action features on how one
university used task leadership to help
reclaim the national college football
championship; abusive leadership
at a local pharmacy.

• New Problem-Solving Application on
Barnes & Noble’s search for a new CEO.

• New end-of-chapter Problem-Solving
Application Case on Elon Musk and his
leadership behavior.

• New Legal/Ethical Challenge on whether
store managers should force employees
to pierce childrens’ ears against their

• Expanded discussion of sustainability as a

key driver of organizational success.

• New examples for the three levels of organi-
zational culture; the four cultural types in
the competing values framework; the
12 mechanisms to change organizational
culture; the three stages of socialization; the
career and psychosocial functions of
mentoring; how human and social capital
enhance the benefits of mentoring.

• Updated research for the three stages of
socialization; new illustrations on the
importance of organizational culture; new
examples of the career and psychosocial
functions of mentoring.

• New OB in Action feature about compa-
nies that demonstrate sustainability

• New Problem-Solving Application about
Sprouts Farmers Market and its organiza-
tional culture.



• Streamlined and updated research and
examples related to common models
of change; forces for change; managing

• New Winning at Work feature on

• New OB in Action features on turnover
among CEOs; improving lives with shoes.

• New Applying OB features on answering
behavioral interview questions; how …

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